ACE Ltd. Announces Third Quarter Losses
Bermuda- and Switzerland-based ACE Ltd. says financial market volatility in the credit, equity and foreign exchange markets have impacted third-quarter net income with the company today [Oct. 26] reporting a $31 million third-quarter loss.
ACE Ltd. is the parent company of the ACE Group, a global provider of insurance products covering property and casualty, accident and health, reinsurance, travel, creditor, and life insurance
The volatility affected ACE’s variable annuity reinsurance business, resulting in a $660 million net loss for that line, the company says.
In a statement, Evan G. Greenberg, chairman and chief executive offer, blames an “historic drop in interest rates—the lowest level in over 100 years,” as well as other factors.
A year ago during the third quarter, ACE reported net income of $675 million. After nine months this year, the Zurich-based insurance and reinsurance company’s net income is down 60 percent to $835 million from about $2.11 billion a year ago.
Pre-tax third-quarter catastrophe losses were $121 million, compared to $97 million during the same time in 2010. The property and casualty combined ratio was 90.3, up from 88.4 last year.
Mr. Greenberg says third-quarter revenue increased 31 percent and operating income was up 10 percent to $759 million — a record for the company
Ship in distress. Man the lifeboats.