ACE Limited Reports Fourth Quarter, Year-end Earnings.Business Editors HAMILTON Hamilton, city, Bermuda Hamilton, city (1990 est. pop. 3,100), capital of Bermuda, on Bermuda Island. It is a port at the head of Great Sound, a huge lagoon and deepwater harbor protected by coral reefs. , Bermuda--(BUSINESS WIRE)--Feb. 13, 2002 ACE Limited (NYSE NYSE See: New York Stock Exchange :ACE) today reported income excluding net realized gains Realized Gain A gain resulting from selling an asset at a price higher than the original purchase price. Notes: There may be tax consequences for a realized profit. (losses) of $41.9 million for the quarter ended December December: see month. 31, 2001 compared with $164.3 million for the same quarter in 2000 and earnings per share excluding net realized gains (losses), after deducting preferred dividends preferred dividend n. a payment of a corporation's profits to holders of preferred shares of stock. (See: preferred stock) , of $0.14 for the current quarter compared with $0.65 last year. Net income for the quarter ended December 31, 2001 was $46.3 million compared with $113.8 million for fiscal 2000 and earnings per share, after deducting preferred dividends, was $0.15 for the current quarter compared with $0.44 for the same quarter last year. Earnings per share calculations are based on the weighted average number of shares calculated in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with FAS 128 on a diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. basis. For the year ended December 31, 2001, income (loss) excluding net realized gains (losses), non-recurring expenses, and the cumulative effect of adopting a new accounting standard was $(68.9) million compared with $581.9 million last year and a loss per share, after deducting preferred dividends, of $0.40 for the year ended December 31, 2001 compared with earnings per share of $2.48 per share for 2000. Net loss for the year was $146.4 million compared with net income of $543 million for fiscal 2000 and the loss per share, after deducting preferred dividends, was $0.74 for the current year compared with earnings per share of $2.31 last year. The fully diluted book value per share of the company at December 31, 2001 was $23.59. "In spite of in opposition to all efforts of; in defiance or contempt of; notwithstanding. See also: Spite the losses incurred during the year, we ended 2001 in a stronger financial position than we began," said Brian The name Brian (sometimes spelled Bryan) comes from an Irish backround. It is of Celtic origin and its meaning may be "hill" or "strong, noble, and high"[1]. Duperreault, Chairman and Chief Executive Officer of ACE Limited. "Our surplus was at its highest levels ever, providing us with the capital resources we need to meet increased customer demand." Gross premiums written When a non-life insurance company closes a contract to provide insurance against loss, the revenues (premiums) expected to be received over the life of the contract are called gross premiums written. during the December 31, 2001 quarter increased by 65 percent to $2.7 billion, compared with $1.6 billion for the comparable quarter in 2000. Net premiums written during the December 31, 2001 quarter were $1.9 billion compared with $1 billion for the same period in 2000, an increase of 83 percent. Net premiums earned during the quarter were up 62 percent to $1.8 billion from $1.1 billion for the same quarter in 2000. Gross premiums written for fiscal 2001 were $10.2 billion compared with $7.6 billion for fiscal 2000, an increase of 34 percent. For fiscal 2001, net premiums written increased 30 percent to $6.4 billion compared with $4.9 billion for fiscal 2000. Net premiums earned for the year ended December 31, 2001 were $5.9 billion compared with $4.5 billion for fiscal 2000, a 30 percent increase. Net investment income, excluding net realized gains (losses), was $192 million for the fiscal 2001 fourth quarter, compared with $209 million for the same period last year. For the year ended December 31, 2001, net investment income, excluding net realized gains (losses), was $786 million compared with $771 million for fiscal 2000. During the 2001 fourth quarter, ACE had net realized gains, net of tax, of $4 million, compared with net realized losses Realized Loss A loss recognized when assets are sold for a price lower than the original purchase price. Notes: A portion of the realized loss may be applied against a capital gain or realized profit to reduce taxes. of $50 million for the same quarter in 2000. For the year ended December 31, 2001, net realized losses, net of tax, were $50 million, compared with net realized losses of $39 million for fiscal 2000. The ACE Group of Companies provides insurance and reinsurance The contract made between an insurance company and a third party to protect the insurance company from losses. The contract provides for the third party to pay for the loss sustained by the insurance company when the company makes a payment on the original contract. for a diverse group of clients. The ACE Group conducts its business on a global basis with operating subsidiaries An operating subsidiary is a business term frequently used within the United States railroad industry. In the case of a railroad, it refers to a company that is a subsidiary but operates with its own identity and rolling stock. in nearly 50 countries. Additional information can be found at: http://www.acelimited.com. ACE Limited (NYSE:ACE) will host a live webcast of its fourth quarter, year-end year-end also year·end n. The end of a year. adj. Occurring or done at the end of the year: a year-end audit. Noun 1. earnings conference call on Wednesday Wednesday: see week. , February February: see month. 13, 2002, beginning at 9:30 a.m. EST EST electroshock therapy. EST abbr. electroshock therapy . The public may access the webcast, which is available on a listen-only basis, at www.acelimited.com. Please refer to our website for further log-in Verb 1. log-in - enter a computer; "Have you logged in lately?" log in, log on access - obtain or retrieve from a storage device; as of information on a computer details. Individuals who access the webcast will be asked to identify themselves and their affiliation affiliation (  fil´ēā´sh .
A replay of the webcast will be available following the live webcast on
Wednesday, February 13, 2002 until Wednesday, February 20, 2002 at 11:30
p.m. EST P.M. also p.m. or p.m.abbr. post meridiem Usage Note: By definition, 12 a.m. . Application of the Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995: Any forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. made in this press release reflect the Company's current views with respect to future events and financial performance and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements involve risks and uncertainties which may cause actual results to differ materially from those set forth in these statements. For example, the adequacy of capital resources could be affected by the frequency of unpredictable catastrophic events, actual loss experience, the amount and timing of reinsurance recoverables and market conditions affecting ACE's investments. Also, competition in the industry, the levels of new and renewal business achieved, market acceptance, and economic, market, legislative, regulatory reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. , Lloyd's Lloyd's, London insurance underwriting corporation of many separate syndicates; often called Lloyd's of London. Founded in the late 17th cent. by a group of merchants, shipowners, and insurance brokers at the coffeehouse of Edward Lloyd, the association is now , insurance and reinsurance business conditions, as well as management's response to these factors, and other factors identified in the Company's filings with the Securities and Exchange Commission, could affect the forward-looking statements contained in this press release. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the dates on which they are made. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
ACE Limited
Summary Consolidated Financial Data
(in thousands of U.S. dollars, except share and per share data)
----------------------------------------------------------------------
Three Months Ended Year Ended
December 31 December 31
---------------------- -----------------------------
2001 2000 2001 2000 1999
---- ---- ---- ---- ----
Operations Data:
Gross premiums written:
Property and
casualty
premiums $2,347,795 $1,639,928 $9,751,310 $7,586,771 $3,869,157
Life and
annuity
premiums 350,897 - 414,052 - -
---------- ----------- ---------- ---------- ----------
2,698,692 1,639,928 10,165,362 7,586,771 3,869,157
Net premiums written:
Property and
casualty
premiums 1,508,249 1,011,643 5,955,924 4,879,354 2,495,348
Life and
annuity
premiums 344,535 - 407,690 - -
---------- ----------- ---------- ---------- ----------
1,852,784 1,011,643 6,363,614 4,879,354 2,495,348
Net premiums earned:
Property and
casualty
premiums 1,420,320 1,087,339 5,510,897 4,543,763 2,485,737
Life and
annuity
premiums 343,125 - 406,280 - -
---------- ---------- ---------- --------- ---------
1,763,445 1,087,339 5,917,177 4,534,763 2,485,737
Losses and loss
expenses 1,104,695 679,584 4,552,456 2,936,065 1,639,543
Life and
annuity
benefits 342,718 - 401,229 - -
Policy acquisition
costs 225,668 168,113 784,664 650,741 338,076
Administrative
expenses 222,215 187,907 823,630 742,691 484,556
---------- ---------- ---------- --------- ---------
Underwriting income
(loss) (131,851) 51,735 (644,802) 205,266 23,562
Net investment
income 192,263 209,307 785,869 770,855 493,337
Amortization of
goodwill 19,907 19,931 79,571 78,820 45,350
Interest expense 46,088 54,906 199,182 221,450 105,138
Income tax expense
(benefit) (47,494) 21,926 (68,748) 93,907 36,624
Income (loss)
excluding net
realized gains
(losses), non-
recurring expenses
and cumulative
effect of adopting
a new accounting
standard 41,911 164,279 (68,938) 581,944 329,787
Non-recurring
expenses(a) - - (4,461) - (6,942)
---------- ---------- ---------- --------- ---------
Income (loss)
excluding net
realized gains
(losses) and
cumulative
effect 41,911 164,279 (73,399) 581,944 322,845
Net realized gains
(losses)(a) 4,354 (50,491) (50,345) (38,962) 42,118
---------- ---------- ---------- --------- ---------
Income (loss)
excluding
cumulative
effect 46,265 113,788 (123,744) 542,982 364,963
Cumulative effect
of adopting a
new accounting
standard(a) - - (22,670) - -
---------- ---------- ---------- ---------- ---------
Net income
(loss) $ 46,265 $113,788 $(146,414) $542,982 $364,963
========== ========== ========== ========== =========
Basic earnings (loss) per share:(b)
Earnings (loss)
per share
excluding net
realized gains
(losses),
non-recurring
expenses and
cumulative
effect of
adopting a new
accounting
standard $0.14 $0.68 $(0.40) $2.55 $1.70
Weighted average
shares
outstanding 246,677,848 232,167,444 233,799,588 221,082,961 194,028,374
Diluted earnings
(loss) per share:(b)
Earnings (loss)
per share
excluding net
realized gains
(losses),
non-recurring
expenses and
cumulative
effect of adopting
a new accounting
standard $0.14 $0.65 $(0.40) $2.48 $1.67
Weighted average
shares
outstanding 258,692,685 243,796,920 233,799,588 227,418,430 197,626,354
(a) Shown net of income tax
(b) Detailed EPS information provided on page 14 of this release
----------------------------------------------------------------------
ACE Limited
Consolidated Supplemental Segment Information
(in millions of U.S. dollars)
----------------------------------------------------------------------
Three Months Ended Year Ended
December 31 December 31
---------------------- -----------------------------
2001 2000 2001 2000 1999
---- ---- ---- ---- ----
Gross Premiums Written
----------------------
ACE Bermuda $251 $ 87 $1,145 $ 598 $ 553
ACE Global Markets 429 311 1,300 1,064 635
ACE Global
Reinsurance(1) 372 13 740 191 182
ACE USA 1,135 718 4,428 3,380 1,567
ACE International 534 473 2,260 2,027 932
ACE Financial
Services (22) 38 292 327 -
----- ----- ----- ----- -----
Total $2,699 $1,640 $10,165 $7,587 $3,869
----- ----- ----- ----- -----
Net Premiums Written
--------------------
ACE Bermuda $341 $ 66 $1,061 $ 512 $ 429
ACE Global Markets 249 221 766 772 439
ACE Global
Reinsurance(1) 367 11 694 157 145
ACE USA 541 338 2,047 1,708 797
ACE International 378 338 1,512 1,419 685
ACE Financial
Services (23) 37 284 311 -
----- ----- ----- ----- -----
Total $1,853 $1,011 $6,364 $4,879 $2,495
----- ----- ----- ----- -----
Net Premiums Earned
-------------------
ACE Bermuda $ 163 $ 131 $ 945 $ 487 $ 510
ACE Global Markets 165 165 624 619 364
ACE Global
Reinsurance(1) 414 45 662 141 140
ACE USA 557 363 1,892 1,619 749
ACE International 378 348 1,442 1,386 723
ACE Financial
Services 86 35 352 283 -
----- ----- ----- ----- -----
Total $1,763 $1,087 $5,917 $4,535 $2,486
----- ----- ----- ----- -----
----------------------------------------------------------------------
(1) Includes both property and casualty reinsurance and life
reinsurance business
ACE Limited
Summary Consolidated Financial Data
(in thousands of U.S. dollars, except per share data)
----------------------------------------------------------------------
December 31
2001 2000
------- ------
Balance Sheet Data:
Assets
Fixed maturities available for
sale, at fair value
(amortized cost $12,794,444
and $10,640,937) $13,000,165 $10,721,309
Equity securities, at fair value
(cost $516,028 and $495,049) 467,566 532,046
Short-term investments 1,205,795 1,369,784
Other investments, at fair value
(cost $569,045 and $518,130) 591,006 531,116
Cash 671,381 608,069
------------ ------------
Total investments and cash $15,935,913 $13,762,324
Insurance and reinsurance
balances receivable 2,521,562 2,095,573
Accounts and notes receivable 242,724 388,996
Reinsurance recoverable 11,398,446 8,994,940
Deferred policy acquisition costs 679,281 572,757
Goodwill 2,772,094 2,846,709
Deferred tax assets 1,250,835 1,144,261
Other assets 2,385,909 1,883,966
------------ ------------
Total assets $37,186,764 $31,689,526
============ ============
Liabilities
Unpaid losses and loss expenses $20,728,122 $17,388,394
Unearned premiums 3,853,429 3,035,288
Future policy benefits for life
and annuity contracts 382,730 -
Insurance and reinsurance balances
payable 1,418,001 1,319,091
Contract holder deposit funds 101,187 139,056
Accounts payable, accrued expenses
and other liabilities 1,565,657 1,412,699
Short-term debt 495,408 364,509
Long-term debt 1,349,473 1,424,228
Trust preferred securities 875,000 875,000
------------ ------------
Total liabilities $30,769,007 $25,958,265
------------ ------------
Commitments and contingencies
Mezzanine equity $ 311,050 $ 311,050
------------ ------------
Shareholders' equity
Ordinary shares ($0.041666667
par value, 300,000,000 shares
authorized; 259,861,205 and
232,346,579 shares issued
and outstanding) $ 10,828 $ 9,681
Additional paid-in capital 3,710,698 2,637,085
Unearned stock grant compensation (37,994) (29,642)
Retained earnings 2,321,576 2,733,633
Defered Compensation Obligation 16,497 14,597
Accumulated other comprehensive
income 101,599 69,454
Common stock issued to employee
trust (16,497) (14,597)
------------ -----------
Total shareholders' equity $ 6,106,707 $ 5,420,211
------------ -----------
Total liabilities, mezzanine
equity and shareholders'
equity $37,186,764 $31,689,526
=========== ===========
Certain items have been reclassified to conform with the current
year presentation.
----------------------------------------------------------------------
ACE Limited
Supplemental Information by Segment
Three months ended December 31, 2001
(in thousands of U.S. dollars)
----------------------------------------------------------------------
ACE ACE Global ACE
ACE Global Reinsurance ACE Inter-
Bermuda Markets P&C USA national
------- ------- ----------- ---- --------
Operations Data:
Gross premiums
written $250,933 $428,996 $21,353 $1,134,604 $534,274
Net premiums
written 340,850 248,787 22,360 541,005 377,910
Net premiums
earned 163,295 165,301 70,644 556,857 378,443
Losses and loss
expenses 122,169 95,064 12,722 407,941 412,734
Policy
acquisition
costs 7,760 58,621 13,833 47,870 74,234
Administrative
expenses 9,924 18,906 5,828 73,715 74,246
------- ------- ------- ------- -------
Underwriting
income 23,442 (7,290) 38,261 27,331 (182,771)
Net investment
income 39,451 7,170 17,333 78,903 16,555
Amortization of
goodwill (225) 952 3,503 135 -
Interest expense 5,557 513 733 7,625 -
Income tax expense
(benefit) 710 289 - 32,860 (61,766)
------- ------- ------- ------- -------
Income (loss)
excluding net
realized gains
(losses) 56,851 (1,874) 51,358 65,614 (104,450)
Net realized
gains
(losses)(a) (4,303) 779 4,564 (9,849) 1,985
------- ------- ------- ------- -------
Net income
(loss) $52,548 $(1,095) $55,922 $55,765 $(102,465)
======= ======= ======= ======= ========
Losses and loss
expense ratio 74.8% 57.5% 18.0% 73.3% 109.1%
Policy acquisition
cost ratio 4.7% 35.5% 19.6% 8.6% 19.6%
Administrative
expense ratio 6.1% 11.4% 8.2% 13.2% 19.6%
Combined ratio 85.7% 104.4% 45.8% 95.1% 148.3%
ACE
ACE Consoli- Global
Financial dated Reinsurance ACE
Services Other(1) P&C Life Consolidated
-------- -------- --- ----------- ------------
Operations Data:
Gross premiums
written $(22,365) $ - $2,347,795 $350,897 $2,698,692
Net premiums
written (22,663) - 1,508,249 344,535 1,852,784
Net premiums
earned 85,780 - 1,420,320 343,125 1,763,445
Losses and loss
expenses 54,065 - 1,104,695 342,718 1,447,413
Policy acquisition
costs 17,232 - 219,550 6,118 225,668
Administrative
expenses 9,507 29,901 222,027 188 222,215
-------- ------ --------- -------- ---------
Underwriting
income 4,976 (29,901) (125,952) (5,899) (131,851)
Net investment
income 25,909 (2,012) 183,309 8,954 192,263
Amortization of
goodwill 1,052 14,490 19,907 - 19,907
Interest expense 3,527 28,133 46,088 - 46,088
Income tax expense
(benefit) 1,408 (20,995) (47,494) - (47,494)
-------- ------ --------- -------- ---------
Income (loss)
excluding net
realized gains
(losses) 24,898 (53,541) 38,856 3,055 41,911
Net realized gains
(losses)(a) (2,048) 11,541 2,669 1,685 4,354
-------- ------ --------- -------- ---------
Net income
(loss) $ 22,850 $(42,000) $ 41,525 $ 4,740 $ 46,265
======== ====== ========= ======== =========
Losses and loss
expense ratio 63.0% 77.8%
Policy acquisition
cost ratio 20.1% 15.5%
Administrative
expense ratio 11.1% 15.6%
Combined ratio 94.2% 108.9%
----------------------------------------------------------------------
(1) Includes ACE Limited, ACE INA Holdings and Intercompany
Eliminations
(a) Shown net of income tax
ACE Limited
Supplemental Information by Segment
For the Three Months ended December 31, 2000
(in thousands of U.S. Dollars)
----------------------------------------------------------------------
ACE ACE
ACE Global Global ACE
Bermuda Markets Reinsurance USA
------- ------- ----------- ---
Operations Data:
Gross premiums
written $87,077 $311,127 $12,548 $717,801
Net premiums
written 66,013 220,881 11,224 337,838
Net premiums
earned 130,820 164,730 45,275 362,983
Losses and loss
expenses 96,853 95,852 480 254,098
Policy acquisition
costs 5,982 45,161 7,315 42,458
Administrative
expenses 7,655 15,315 2,478 65,394
------- -------- ------- --------
Underwriting
income (loss) 20,330 8,402 35,002 1,033
Net investment
income 38,541 13,216 15,442 89,819
Amortization of
goodwill (225) 978 3,502 135
Interest expense 45 900 - 10,324
Income tax expense
(benefit) 539 6,412 - 25,297
------- -------- ------- --------
Income (loss)
excluding net
realized gains
(losses) 58,512 13,328 46,942 55,096
Net realized
gains (losses)
(a) (30,088) 698 (17,783) (5,797)
------- -------- ------- --------
Net income
(loss) $28,424 $14,026 $29,159 $49,299
======= ======== ======= ========
Losses and
loss expense
ratio 74.0% 58.2% 1.0% 70.0%
Policy acquisition
cost ratio 4.6% 27.4% 16.2% 11.7%
Administrative
expense ratio 5.9% 9.3% 5.5% 18.0%
Combined ratio 84.5% 94.9% 22.7% 99.7%
ACE
ACE Financial ACE
Internat'l Services Other(1) Consolidated
---------- -------- -------- ------------
Operations Data:
Gross premiums
written $473,432 $37,943 $ - $1,639,928
Net premiums
written 338,344 37,343 - 1,011,643
Net premiums
earned 348,146 35,385 - 1,087,339
Losses and loss
expenses 212,268 20,033 - 679,584
Policy acquisition
costs 62,385 4,812 - 168,113
Administrative
expenses 73,501 9,134 14,430 187,907
-------- ------- ------- -------
Underwriting
income (loss) (8) 1,406 (14,430) 51,735
Net investment
income 22,979 25,589 3,721 209,307
Amortization of
goodwill - 1,051 14,490 19,931
Interest expense - 3,345 40,292 54,906
Income tax expense
(benefit) 832 4,962 (16,116) 21,926
-------- ------- ------- -------
Income (loss)
excluding net
realized gains
(losses) 22,139 17,637 (49,375) 164,279
Net realized
gains (losses)
(a)
(1,558) 3,874 163 (50,491)
-------- ------- ------- -------
Net income
(loss) $20,581 $21,511 ($49,212) $113,788
======== ======== ======= ========
Losses and loss
expense ratio 61.0% 56.6% 62.5%
Policy acquisition
cost ratio 17.9% 13.6% 15.4%
Administrative
expense ratio 21.1% 25.8% 17.3%
Combined ratio 100.0% 96.0% 95.2%
----------------------------------------------------------------------
(1) Includes ACE Limited, ACE INA Holdings and Intercompany
Eliminations
(a) shown net of income tax.
ACE Limited
Supplemental Information by Segment
Year ended December 31, 2001
(in thousands of U.S. dollars)
----------------------------------------------------------------------
ACE ACE Global ACE
ACE Global Reinsurance ACE Inter-
Bermuda Markets P&C USA national
------- ------- ----------- ---- --------
Operations Data:
Gross premiums
written $1,145,564 $1,299,843 $325,548 $4,427,945 $2,260,222
Net premiums
written 1,060,959 765,568 286,701 2,046,975 1,511,774
Net premiums
earned 945,501 623,916 255,538 1,891,703 1,441,910
Losses and loss
expenses 1,056,136 550,177 199,606 1,419,157 1,086,782
Policy
acquisition
costs 22,632 216,778 46,655 182,334 260,689
Administrative
expenses 38,492 71,622 24,771 283,417 271,372
---------- ---------- -------- -------- ----------
Underwriting
income (171,759) (214,661) (15,494) 6,795 (176,933)
Net investment
income 153,179 35,745 64,811 335,168 80,846
Amortization of
goodwill (900) 3,755 14,011 540 -
Interest expense 6,445 2,591 733 33,481 -
Income tax expense
(benefit) 2,756 (65,095) - 99,716 (46,033)
---------- ---------- ---------- -------- ----------
Income (loss) excluding
net realized gains
(losses), non-recurring
expenses and cumulative
effect (26,881) (120,167) 34,573 208,226 (50,054)
Non-recurring
expenses(a) - (4,461) - - -
---------- ---------- ---------- -------- ----------
Income (loss)
excluding net
realized gains
(losses) and
cumulative
effect (26,881) (124,628) 34,573 208,226 (50,054)
Net realized
gains
(losses)(a) 6,470 6,617 (19,008) (31,271) 2,962
---------- ---------- ---------- -------- ----------
Income (loss)
excluding
cumulative
effect of
adopting a
new accounting
standard (20,411) (118,011) 15,565 176,955 (47,092)
Cumulative effect
of adopting
a new accounting
standard(a) - 510 470 (50) -
---------- ---------- ---------- --------- ----------
Net income
(loss) $(20,411) $(117,501) $16,035 $176,905 $(47,092)
========== ========== ========== ========= ==========
Losses and loss
expense ratio 111.7% 88.2% 78.1% 75.0% 75.4%
Policy acquisition
cost ratio 2.4% 34.7% 18.3% 9.6% 18.1%
Administrative
expense ratio 4.1% 11.5% 9.7% 15.0% 18.8%
Combined ratio 118.2% 134.4% 106.1% 99.6% 112.3%
ACE
ACE Global
Financial Consolidated Reinsurance ACE
Services Other(1) P&C Life Consolidated
-------- -------- --- ----------- ------------
Operations Data:
Gross premiums
written $292,188 $ - $9,751,310 $414,052 $10,165,362
Net premiums
written 283,947 - 5,955,924 407,690 6,363,614
Net premiums
earned 352,329 - 5,510,897 406,280 5,917,177
Losses and
loss
expenses 240,598 - 4,552,456 401,229 4,953,685
Policy
acquisition
costs 47,724 - 776,812 7,852 784,664
Administrative
expenses 36,586 94,583 820,843 2,787 823,630
-------- ------- --------- -------- ---------
Underwriting
income 27,421 (94,583) (639,214) (5,588) (644,802)
Net investment
income 101,566 5,146 776,461 9,408 785,869
Amortization of
goodwill 4,205 57,960 79,571 - 79,571
Interest
expense 14,013 141,919 199,182 - 199,182
Income tax expense
(benefit) 16,607 (76,699) (68,748) - (68,748)
-------- ------- --------- -------- ---------
Income (loss)
excluding net
realized gains
(losses),
non-recurring
expenses
and cumulative
effect 94,162 (212,617) (72,758) 3,820 (68,938)
Non-recurring
expenses(a) - - (4,461) - (4,461)
-------- ------- --------- -------- ---------
Income (loss)
excluding net
realized gains
(losses) and
cumulative
effect 94,162 (212,617) (77,219) 3,820 (73,399)
Net realized
gains
(losses)(a) (4,276) (13,524) (52,030) 1,685 (50,345)
-------- ------- --------- -------- ---------
Income (loss)
excluding
cumulative effect
of adopting a new
accounting
standard 89,886 (226,141) (129,249) 5,505 (123,744)
Cumulative
effect of
adopting
a new
accounting
standard(a) (23,600) - (22,670) - (22,670)
-------- ------- --------- -------- ---------
Net income
(loss) $ 66,286 $(226,141) $(151,919) $5,505 $(146,414)
======== ======== ========= ======== =========
Losses and loss
expense ratio 68.3% 82.6%
Policy acquisition
cost ratio 13.5% 14.1%
Administrative
expense ratio 10.4% 14.9%
Combined ratio 92.2% 111.6%
----------------------------------------------------------------------
(1) Includes ACE Limited, ACE INA Holdings and Intercompany
Eliminations
(a) Shown net of income tax
ACE Limited
Supplemental Information by Segment
For the year ended December 31, 2000
(in thousands of U.S. Dollars)
----------------------------------------------------------------------
ACE ACE
ACE Global Global ACE
Bermuda Markets Reinsurance USA
------- ------- ----------- ---
Operations Data:
Gross premiums
written $597,865 $1,063,918 $190,771 $3,380,343
Net premiums
written 512,310 772,021 157,489 1,707,623
Net premiums
earned 486,984 619,329 141,337 1,619,025
Losses and loss
expenses 361,855 354,123 17,954 1,192,881
Policy acquisition
costs 20,630 164,738 25,192 160,956
Administrative
expenses 29,933 69,384 10,284 253,946
------- ------- ------- --------
Underwriting income
(loss) 74,566 31,084 87,907 11,242
Net investment
income 149,781 36,636 60,281 341,361
Amortization of
goodwill (883) 3,968 14,010 540
Interest expense 1,643 4,980 - 38,333
Income tax expense
(benefit) 2,459 17,481 (173) 98,288
------- ------- ------- --------
Income (loss)
excluding
net realized
gains (losses) 221,128 41,291 134,351 215,442
Net realized
gains (losses)
(a) 1,344 (1,495) (38,161) (22,633)
------- ------- ------- --------
Net income
(loss) $222,472 $ 39,796 $ 96,190 $192,809
======= ======= ======= ========
Losses and
loss expense
ratio 74.3% 57.2% 12.7% 73.7%
Policy acquisition
cost ratio 4.2% 26.6% 17.8% 9.9%
Administrative
expense ratio 6.2% 11.2% 7.3% 15.7%
Combined ratio 84.7% 95.0% 37.8% 99.3%
ACE
ACE Financial ACE
Internat'l Services Other(1) Consolidated
---------- -------- -------- ------------
Operations Data:
Gross premiums
written $2,027,285 $326,589 $ - $7,586,771
Net premiums
written 1,418,661 311,250 - 4,879,354
Net premiums
earned 1,385,557 282,531 - 4,534,763
Losses and
loss expenses 826,210 183,042 - 2,936,065
Policy acquisition
costs 235,847 43,378 - 650,741
Administrative
expenses 285,090 32,839 61,215 742,691
---------- --------- --------- ---------
Underwriting income
(loss) 38,410 23,272 (61,215) 205,266
Net investment
income 92,477 96,591 (6,272) 770,855
Amortization of
goodwill - 4,205 56,980 78,820
Interest expense - 13,361 163,133 221,450
Income tax expense
(benefit) 20,067 20,626 (64,841) 93,907
--------- --------- --------- ---------
Income (loss)
excluding net
realized gains
(losses) 110,820 81,671 (222,759) 581,944
Net realized gains
(losses) (a) 18,221 5,440 (1,678) (38,962)
---------- --------- --------- ----------
Net income (loss) $ 129,041 $87,111 $(224,437) $ 542,982
========== ========= ========= ==========
Losses and loss expense
ratio 59.6% 64.8% 64.7%
Policy acquisition
cost ratio 17.0% 15.4% 14.4%
Administrative expense
ratio 20.6% 11.6% 16.4%
Combined ratio 97.2% 91.8% 95.5%
----------------------------------------------------------------------
(1) Includes ACE Limited, ACE INA Holdings and Intercompany
Eliminations
(a) Shown net of income tax.
ACE Limited
Supplemental Information by Segment
For the year ended December 31, 1999
(in thousands of U.S. Dollars)
----------------------------------------------------------------------
ACE ACE
ACE Global Global ACE
Bermuda Markets Reinsurance USA
--------- --------- ------------ ------------
Operations Data:
Gross premiums
written $553,365 $634,689 $182,267 $1,566,584
Net premiums written 428,953 438,769 145,673 796,892
Net premiums earned 510,013 363,887 140,094 748,635
Losses and loss
expenses 390,385 205,811 96,935 533,275
Policy acquisition
costs 14,862 94,419 20,809 68,993
Administrative
expenses 38,233 54,636 11,927 176,524
--------- --------- ------------ ------------
Underwriting income
(loss) 66,533 9,021 10,423 (30,157)
Net investment
income 174,647 28,489 60,015 188,688
Amortization of
goodwill (834) 4,204 14,011 469
Interest expense 4,705 3,944 - 34,563
Income tax expense
(benefit) 2,129 6,006 - 34,693
--------- --------- ------------ ------------
Income (loss)
excluding net
realized gains
(losses) and
non-recurring
expenses 235,180 23,356 56,427 88,806
Non-recurring
expenses(a) - - - (3,900)
--------- --------- ------------ ------------
Income (loss)
excluding net
realized gains
(losses) 235,180 23,356 56,427 84,906
Net realized gains
(losses)(a) 63,752 (4,373) (3,771) (3,529)
--------- --------- ------------ ------------
Net income (loss) $298,932 $ 18,983 $ 52,656 $ 81,377
======== ========= ============ ============
Losses and loss
expense ratio 76.5% 56.6% 69.2% 71.2%
Policy acquisition
cost ratio 2.9% 25.9% 14.9% 9.2%
Administrative
expense ratio 7.5% 15.0% 8.5% 23.6%
Combined ratio 86.9% 97.5% 92.6% 104.0%
ACE Limited
Supplemental Information by Segment
For the year ended December 31, 1999
(in thousands of U.S. Dollars)
----------------------------------------------------------------------
ACE ACE
Internat'l Other (1) Consolidated
---------- --------- ------------
Operations Data:
Gross premiums
written $932,252 $ - $3,869,157
Net premiums written 685,061 - 2,495,348
Net premiums earned 723,108 - 2,485,737
Losses and loss
expenses 413,137 - 1,639,543
Policy acquisition
costs 138,993 - 338,076
Administrative
expenses 152,165 51,071 484,556
--------- --------- ------------
Underwriting income
(loss) 18,813 (51,071) 23,562
Net investment
income 40,664 834 493,337
Amortization of
goodwill - 27,500 45,350
Interest expense - 61,926 105,138
Income tax expense
(benefit) 20,199 (26,403) 36,624
--------- --------- ------------
Income (loss)
excluding net
realized gains
(losses) and
non-recurring
expenses 39,278 (113,260) 329,787
Non-recurring
expenses(a) (3,042) - (6,942)
--------- --------- ------------
Income (loss)
excluding net
realized gains
(losses) 36,236 (113,260) 322,845
Net realized gains
(losses)(a) (608) (9,353) 42,118
--------- --------- ------------
Net income (loss) $ 35,628 $(122,613) $364,963
========= ========= ============
Losses and loss
expense ratio 57.1% 66.0%
Policy acquisition
cost ratio 19.2% 13.6%
Administrative
expense ratio 21.0% 19.5%
Combined ratio 97.3% 99.1%
----------------------------------------------------------------------
(1) Includes ACE Limited, ACE INA Holdings and Intercompany
Eliminations.
(a) Shown net of income tax.
ACE Limited
Supplemental Information
December 31, 2001
(in millions of U.S. dollars)
----------------------------------------------------------------------
Amount Interest expense including fees
Outstanding at Coupon Three Months Ended Year Ended
Dec. 31, 2001 Rate Dec. 31, 2001 Dec. 31, 2001
------------- ------ ------------- -------------
Short-term Debt
ACE Financial
Services Note $ 25 Floating $ 0.2 $ 1.3
Reverse Repurchase
Agreements 395 0.9 0.9
ACE Financial Services
Debentures due 2002 75 7.75% 1.5 5.8
ACE INA commercial paper - Floating 0.6 13.6
ACE INA bank borrowings - 0.9 1.2
--- --- -----
$ 495 $ 4.1 $ 22.8
--- --- -----
Long-term Debt
ACE INA Notes due 2004 $ 400 8.20% $ 8.2 $ 32.8
ACE INA Notes due 2006 299 8.30% 6.2 24.8
ACE INA Debentures due
2029 100 8.875% 2.2 8.8
ACE US Senior Notes
due 2008 250 6.47% 4.0 16.2
ACE INA Subordinated
Notes due 2009 300 8.41% 6.3 25.2
----- --- -----
$ 1,349 $ 26.9 $ 107.8
----- ---- -----
Trust Preferred
Securities
ACE INA Rhino
Preferred Securities
due 2002 $ 400 Floating $ 3.6 $ 21.9
ACE Financial
Services Mandatorily
Redeemable Preferred
Securities due 2044 75 7.65% 1.4 5.7
ACE INA Trust
Preferred Securities
due 2029 100 8.875% 2.2 8.9
ACE INA Capital
Securities due 2030 300 9.70% 7.3 29.1
--- ---- ----
$ 875 $ 14.5 $ 65.6
--- ---- ----
Other $ 0.6 $ 3.0
---- ----
$ 46.1 $ 199.2
==== =====
----------------------------------------------------------------------
Amount Dividend Dividend
Outstanding at Dividend Three Months Ended Year Ended
Dec. 31, 2001 Rate Dec. 31, 2001 Dec. 31, 2001
------------- ---- ------------- -------------
Mezzanine equity $ 311 8.25% $ 6.4 $ 25.6
===== ===== ===== =====
----------------------------------------------------------------------
ACE Limited
Consolidated Supplemental Information
(in millions of U.S. dollars)
----------------------------------------------------------------------
December 31, 2001 December 31, 2000
----------------- -----------------
Reinsurance Recoverable
Reinsurance recoverable
on paid losses and loss expenses $ 1,066 $ 937
Reinsurance recoverable on
unpaid losses and loss expenses 11,121 8,767
Provision for uncollectible balances (789) (709)
------ -----
$11,398 $8,995
====== =====
----------------------------------------------------------------------
Property & Life & Financial
Casualty Health Products Total
---------- ------ --------- -----
Net Premiums Written by
Type of Premium
Three months ended
December 31, 2001
ACE Bermuda $ 60 $ - $ 281 $ 341
ACE Global Markets 249 - - 249
ACE Global Reinsurance 22 345 - 367
ACE USA 458 - 83 541
ACE International 238 138 2 378
ACE Financial Services - - (23) (23)
------ --- --- -----
Total $ 1,027 $ 483 $ 343 $1,853
------ --- --- -----
----------------------------------------------------------------------
Three months ended
December 31, 2000
ACE Bermuda $ 49 $ - $ 17 $ 66
ACE Global Markets 213 8 - 221
ACE Global Reinsurance 11 - - 11
ACE USA 326 - 12 338
ACE International 225 113 - 338
ACE Financial Services - - 37 37
----- ---- --- -----
Total $ 824 $ 121 $ 66 $1,011
----- ---- --- -----
----------------------------------------------------------------------
Year ended December 31, 2001
ACE Bermuda $ 191 $ - $ 870 $1,061
ACE Global Markets 764 2 - 766
ACE Global Reinsurance 287 407 - 694
ACE USA 1,739 - 308 2,047
ACE International 986 519 7 1,512
ACE Financial Services - - 284 284
----- ---- ----- -----
Total $ 3,967 $ 928 $1,469 $6,364
----- ---- ----- -----
----------------------------------------------------------------------
Year ended December 31, 2000
ACE Bermuda $ 278 $ - $ 234 $ 512
ACE Global Markets 722 50 - 772
ACE Global Reinsurance 157 - - 157
ACE USA 1,475 - 233 1,708
ACE International 948 471 - 1,419
ACE Financial Services - - 311 311
----- ---- --- -----
Total $ 3,580 $ 521 $ 778 $4,879
----- ---- --- -----
----------------------------------------------------------------------
ACE Limited
Consolidated Supplemental Information
Computation of Basic and Diluted Earnings per Share
(in thousands of U.S. dollars, except share and per share data)
----------------------------------------------------------------------
Three Months Ended Year Ended
December 31 December 31
------------------------ ---------------------------
2001 2000 2001 2000 1999
---- ---- ---- ---- ----
Numerator:
Income (loss)
excluding net
realized gains
(losses), non-
recurring
expenses
and cumulative
effect of
adopting a
new accounting
standard $ 41,911 $164,279 $ (68,938) $ 581,944 $ 329,787
Feline PRIDES dividend (6,415) (6,529) (25,594) (18,391) -
------- ------- -------- -------- --------
Income (loss)
available
to the holders
of ordinary shares,
excluding net
realized gains
(losses), non-
recurring expenses
and cumulative
effect of adopting
a new accounting
standard 35,496 157,750 (94,532) 563,553 329,787
Non-recurring
expenses (a) - - (4,461) - (6,942)
------- -------- -------- -------- --------
Net income (loss)
available to
the holders of
ordinary shares,
excluding net
realized gains
(losses) and
cumulative effect 35,496 157,750 (98,993) 563,553 322,845
Net realized gains
(losses) (a) 4,354 (50,491) (50,345) (38,962) 42,118
------- -------- -------- -------- --------
Net income
(loss)
available
to the
holders of
ordinary
shares,
excluding
cumulative
effect 39,850 107,259 (149,338) 524,591 364,963
Cumulative
effect of
adopting a new
accounting
standard (a) - - (22,670) - -
Net income
(loss)
available
to the
holders of
ordinary shares $ 39,850 $107,259 $(172,008) $ 524,591 $ 364,963
-------- ------- ---------- --------- ---------
Denominator:
Denominator
for basic
earnings
per share:
Weighted
average
shares out-
standing 246,677,848 232,167,444 233,799,588 221,082,961 194,028,374
Dilutive
effect
of
Feline
PRIDES 3,490,406 3,824,186 - 1,099,226 -
Effect
of other
dilutive
securities 8,524,431 7,805,290 - 5,236,243 3,597,980
----------- ---------- ----------- ----------- -----------
Denominator
for diluted
earnings per
share:
Adjusted
weighted
average
shares
outstanding
and assumed
con-
versions 258,692,685 243,796,920 233,799,588 227,418,430 197,626,354
----------- ----------- ----------- ----------- -----------
Basic
earnings
(loss)
per share:
Earnings
(loss)
per share
excluding
net real-
ized gains
(losses),
non-
recurring
expenses
and cumula-
tive effect
of adopting
a new
accounting
standard $0.14 $0.68 $(0.40) $2.55 $1.70
Earnings (loss)
per
share
excluding
net realized
gains (losses)
and cumulative
effect of
adopting a
new accounting
standard $0.14 $0.68 $(0.42) $2.55 $1.66
Earnings (loss)
per
share
excluding
cumulative
effect of
adopting a
new accounting
standard $0.16 $0.46 $(0.64) $2.37 $1.88
Earnings (loss)
per
share $0.16 $0.46 $(0.74) $2.37 $1.88
Diluted earnings
(loss)
per share:
Earnings (loss)
per
share excluding
net realized
gains (losses),
non-recurring
expenses and
cumulative
effect of
adopting a
new accounting
standard $0.14 $0.65 $(0.40) $2.48 $1.67
Earnings (loss)
per
share excluding
net realized
gains (losses)
and cumulative
effect of
adopting a
new accounting
standard $0.14 $0.65 $(0.42) $2.48 $1.63
Earnings (loss)
per
share excluding
cumulative
effect of
adopting a
new accounting
standard $0.15 $0.44 $(0.64) $2.31 $1.85
Earnings (loss)
per
share $0.15 $0.44 $(0.74) $2.31 $1.85
(a) Shown net of income tax
----------------------------------------------------------------------
ACE Corporate Announcements - Fourth Quarter, 2001
--------------------------------------------------
December 28, 2001 - Kingsley Schubert to Retire from ACE
ACE Limited announced that Kingsley Schubert, Executive Vice
President, Global Life Insurance, will be retiring from his position
as of January 31, 2002. Mr. Schubert will continue to assist ACE in
the evaluation of the viability of a life acquisition on a consultancy
basis.
December 26, 2001 - ACE Tempest Re USA and The Hartford Announce
Workers' Compensation Catastrophe Product Offering Capacity up to
$20m.
ACE Tempest Re USA, Inc., a wholly-owned subsidiary of ACE INA
Holdings, Inc. underwriting on behalf of ACE USA, announced it has
joined forces with The Hartford Financial Services Group's HartRe
subsidiary to offer workers' compensation catastrophe coverage with
$20 million in capacity. This initiative was created to respond to the
market needs of primary insurers of workers' compensation. ACE Tempest
Re USA will originate and manage business on behalf of both companies
accessing the joint entities' combined surplus of $6.2 billion.
December 17, 2001 - ACE USA Appoints Four Group Presidents and
Realigns Organizational Structure
ACE USA announced a new management structure including the
appointment of Marshall Turner, Brian Dowd, William Curcio and John
Lupica to the newly created positions of business group presidents:
Marshall Turner has been appointed President of Westchester Specialty
Group. In his new role he also will have responsibility for the
Diversified Products division, which includes ACE USA's Agri-business
and Specialty Programs; Brian Dowd has been appointed President of the
Specialty P&C group. In this role, he will be responsible for Global
Property, Energy, Power Products, Commercial Marine and U.S.
International units; William Curcio has been appointed President of
the ACE Risk Management group. Going forward, he will have
responsibility for the National Accounts Casualty Business, Group
Casualty, Wrap-ups and Excess Business for National Accounts; and John
Lupica has been appointed President of the Professional Risk group. In
his new role, he will have senior management responsibility for the
Management Liability, Professional Liability, Programs, Surety, and
Aerospace units.
December 5, 2001 - ACE USA Power Products Introduces PowerBacker LTO -
Long-Term Outage Insurance Coverage for Electric Utilities
ACE USA Power Products announced the latest addition to its family
of coverages for electric utilities - PowerBacker LTO - designed
exclusively for protection against long-term outages. This product
meets the utility industry's demand for a specialist solution to
earnings shocks that can result from long-term generation outages.
November 27, 2001 - ACE USA Appoints Edward G. Troy President, ESIS
Inc.
ACE USA announced the appointment of Edward G. Troy to President
of ESIS, Inc. Based in Philadelphia, Troy has responsibility for
managing the continued profitable growth and strategic direction of
ESIS, Inc., the risk management services arm of ACE USA.
November 26, 2001 - Sovereign Launches Innovative New Product to
Protect Against Maxi-Devaluation Risk - Real Exchange Rate Liquidity
(REX) product marks significant expansion of political risk insurance
coverage for project finance transactions
ACE's political risk joint venture, Sovereign Risk Insurance Ltd.,
announced the launch of the Real Exchange Rate Liquidity (REX)
product, an innovative new political risk insurance product designed
to partially mitigate the risks that large currency devaluations will
impair an infrastructure project's ability to make debt service
payments.
November 1, 2001 - INAMAR Recreational Marine Expands Coverage
and Value in Boatsman National Small Boat Program
INAMAR Recreational Marine, the recreational marine insurance
products and services arm of ACE INA, announced the introduction of
its enhanced Boatsman Program for boats up to 27 feet in length. The
program is offered to owners of both power and sail pleasure craft, as
well as select charter vessels.
October 31, 2001 - ACE INA purchases YouDecide.com from ProAct
Technologies - Internet Portal Provides Financial Services to more
than 4 Million Customers
ACE INA Holdings, Inc. announced the acquisition of YouDecide.com,
Inc. from ProAct Technologies Corp., a leading provider of
applications for managing employee benefits programs. YouDecide.com
offers a voluntary benefits platform that provides customers'
employees a broad choice of financial products and services including
insurance, finance and investment products.
October 25, 2001 - ACE & PMI Announce Joint Marketing Agreement
The PMI Group, Inc. and ACE Limited announced the signing of a
Joint Marketing Agreement to jointly develop opportunities in the
mortgage credit enhancement market and other consumer-based business
markets in continental Europe. Under the joint marketing relationship,
ACE and PMI may offer products and services through jointly branded
marketing throughout continental Europe.
October 19, 2001 - ACE USA Special Risk Facilities Names James W.
Macdonald Senior Vice President and Chief Underwriting Officer
ACE USA announced the appointment of James W. Macdonald to Senior
Vice President and Chief Underwriting Officer, Special Risk Facilities
(SRF). Based in Philadelphia, Macdonald has responsibility for the
profitable growth of the SRF underwriting business unit, including all
aspects of pricing and risk selection.
October 1, 2001 - ACE Hires Julian Edwards and Neil Galletti to head
up Credit and Political Risks Division
ACE Global Markets and ACE Europe are pleased to announce the
appointments of Julian Edwards and Neil Galletti to head up an
operational Credit and Political Risks Division. Mr. Edwards and Mr.
Galletti will be responsible for the overall management of ACE Global
Markets and ACE Europe's Credit and Political Risks operations at a
regional level as well as having a group wide supervisory remit on a
global basis for these classes of business.
|
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion