Ace Ltd. Chairman Pleased with 1stQ Results

Bermuda-based ACE Limited reported the results of operations for the quarter ended March 31, 2003.

Highlights for the quarter are as follows:

*Net income (including realized losses) for the quarter totaled $247 million compared with net income of $198 million for the comparable period a year ago.
*Net income per share was $0.90 for the period compared with $0.70 for the same quarter last year, a gain of 29 percent.
*Net operating income was $279 million compared with $216 million for the same quarter in 2002.
Net operating income per share was $1.02 for the current quarter compared with $0.77 for the same quarter last year, a gain of 32 percent.
*Net realized losses, net of tax, were $32 million, compared with net realized losses of $18 million for the same quarter in 2002. Unrealized gains totaled $79 million compared with $84 million for the same period in 2002.
*Diluted book value per share at March 31, 2003 was $25.14 compared with $24.16 at Dec. 31, 2002, and $23.78 at March 31, 2002.
*Net premiums written increased 48 percent over the same quarter a year ago, while net premiums earned increased 52 percent quarter on quarter.
*Operating cash flow was $600 million during the quarter compared to $144 million in the comparable quarter of 2002.
*Net investment income rose 3 percent to $206 million for the quarter compared with $200 million in the prior year’s quarter.
*The combined ratio was 90.6 percent for the quarter compared to 93.1 percent for the first quarter 2002.

Brian Duperreault, chairman and CEO of ACE Limited, noted, “This was a good quarter for us by any standard of measurement. We were able to demonstrate the earning power we have been building over the last three years. We benefited from growth in earned premiums, improved underwriting margins and strong positive cash flow. However, low investment yields limited our growth in investment income to 3 percent, which continues to lag the growth in underwriting income. Our annualized ROE from operations was 16.7 percent. In summary, an excellent start for the current fiscal year.”