Insurer ACE has seen a tough third quarter as its net profits and gross written premiums deteriorated.
The insurer, which was founded on Bermuda and is a member of the Association of Bermuda Insurers & Reinsurers (ABIR), saw profits hit $785 million in the third quarter of 2014, compared with $916 million in the third quarter of 2013.
Its operating income saw a 3.9 percent rise to $891 million, compared with $857 million in the same period of the prior year.
ACE’s gross written premiums (GWP) fell slightly to $6.3 million in the third quarter of 2014, compared with $6.4 million in the third quarter of 2013.
Its property & casualty line saw underwriting income growth of 5 percent, driven by growth in earned premium and a steady underwriting margin. The insurer’s combined ratio improved minimally to 86.3 percent as it benefitted from strong current accident year results, positive prior years’ reserve development and relatively light catastrophe losses.
Evan Greenberg, chairman and chief executive officer of ACE, said: “ACE had record earnings for the quarter and nine months. After-tax operating income for the quarter of $2.64 per share was up 6 percent, driven by growth in underwriting income and investment income, both of which were up for the quarter and year. Our ROE in the quarter was 12.6 percent.
“We continue to invest for the future. As we announced earlier, all of our regulatory approvals are now in hand for our acquisition of Itaú’s large corporate P&C insurance business in Brazil. We expect the transaction will now close October 31.”