ACE Limited Reports Third Quarter Earnings.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)--July 22, 1998--ACE Limited (NYSE NYSE See: New York Stock Exchange :ACL See access control list. 1. ACL - Access Control List. 2. ACL - Association for Computational Linguistics. 3. ACL - A Coroutine Language. A Pascal-based implementation of coroutines. ["Coroutines", C.D. ) 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. for the fiscal 1998 third quarter ended June 30, 1998 of $102.7 million, or $0.57 per share, compared with $84.3 million, or $0.50 per share, for the same quarter in fiscal 1997. Net income for the fiscal 1998 third quarter was $171.5 million, or $0.95 per share, compared with $130.0 million, or $0.77 per share, 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. Brian Duperreault, chairman, president and chief executive officer of ACE commented: "We are pleased to report good results this quarter in what continues to be a very soft market. Our premium production increase reflects the inclusion of CAT Limited and ACE USA as well as excellent contributions from our Financial Lines division and Lloyd's operations." Mr. Duperreault continued, "Our global diversification Diversification A risk management technique that mixes a wide variety of investments within a portfolio. It is designed to minimize the impact of any one security on overall portfolio performance. Notes: Diversification is possibly the greatest way to reduce the risk. strategy continues at a rapid pace with new ventures and acquisitions announced throughout the quarter in our major markets including Lloyd's, North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. and Bermuda." 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 quarter increased by 66.7 percent to $372.5 million, compared with $223.4 million for the comparable quarter last year. Net premiums written during the quarter increased 43.9 percent to $281.2 million compared with $195.5 million for the same period last year. Net premiums earned during the quarter were up 30.3 percent to $213.1 million from $163.6 million in the same quarter last year. Gross premiums written for the first nine months of fiscal 1998 were $785.6 million compared to $559.2 million for the same period last year, an increase of 40.5 percent. For the first nine months of fiscal 1998, net premiums written increased 22.3 percent to $604.8 million compared to $494.7 million for the first nine months of 1997. Net premiums earned for the nine months ended June 30, 1998 were $565.7 million compared with $486.6 million for the same period last year, a 16.2 percent increase. Net investment income, excluding net realized gains, was $88.2 million for the fiscal 1998 third quarter, compared with $59.5 million for the same period last year, a 48.0 percent increase. For the first nine months of fiscal 1998, net investment income, excluding net realized gains was $219.7 million compared with $177.4 million for the same period last year, a 23.9 percent increase. During the 1998 third quarter, ACE had net realized gains of $68.8 million, compared with net realized gains of $45.8 million for the same quarter last year. For the nine months ended June 30, 1998, net realized gains were $241.9 million, compared with net realized gains of $85.2 million for the first nine months of fiscal 1997. On July 9, 1998, ACE Limited completed the acquisition of Tarquin Limited, a UK-based holding company which owns Lloyd's managing agency Charman Underwriting Underwriting 1. The process by which investment bankers raise investment capital from investors on behalf of corporations and governments that are issuing securities (both equity and debt). 2. The process of issuing insurance policies. Agencies Ltd. and Tarquin Underwriting Limited, its corporate capital provider. 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 international clients. 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. are based in Bermuda, the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. , the United Kingdom (Lloyd's), and the Republic of Ireland. At June 30, 1998, ACE Limited had approximately $3.5 billion in shareholders' equity Shareholders' Equity A firms' total assets minus its total liabilities. Equivalently, it is share capital plus retained earnings minus treasury shares. Shareholders' equity is the amount by which a company is financed through common and preferred shares. and $8.0 billion in assets. -0-
ACE Limited
Summary Consolidated Financial Data
(in thousands of U.S. dollars, except share and per share data)
Three Months Ended Nine Months Ended
June 30 June 30
1998 1997 1998 1997
Operations Data:
Gross premiums written $372,465 $223,390 $785,567 $559,235
Net premiums written 281,166 195,453 604,792 494,655
Net premiums earned 213,126 163,605 565,693 486,646
Net investment income 88,151 59,545 219,693 177,377
Losses and loss expenses 134,305 111,380 359,731 326,820
Acquisition costs 19,871 10,748 50,883 36,764
Administrative expenses 34,443 16,770 79,396 51,881
Interest expense 4,971 -- 8,829 --
Income tax expense 5,015 -- 7,962 --
Income excluding net
realized gains 102,672 84,252 278,585 248,558
Net realized gains 68,791 45,786 241,899 85,170
Net income 171,463 130,038 520,484 333,728
(Basic EPS under FAS 128):
Earnings per share $0.97 $0.78 $3.10 $1.95
Earnings per share excluding
net realized gains $0.58 $0.50 $1.66 $1.45
Weighted average shares
outstanding 176,425,058 167,084,544 167,985,491 171,125,475
(Diluted EPS under FAS 128 and
Primary EPS under APB 15):
Earnings per share $0.95 $0.77 $3.02 $1.92
Earnings per share
excluding net realized
gains $0.57 $0.50 $1.62 $1.43
Weighted average shares
outstanding 181,005,150 169,559,523 172,167,137 173,434,098
ACE Limited
Consolidated Supplementary Information
(in millions of U.S. dollars)
Three Months Ended Nine Months Ended
Gross Premiums Written June 30 June 30
A.C.E. Insurance
(including CODA): 1998 1997 1998 1997
Financial lines $108.5 $ 61.3 $172.3 $114.2
Excess Liability 26.9 41.8 78.9 116.9
Satellite 25.6 30.5 83.9 72.5
Directors & Officers (D&O) 14.6 18.9 58.0 68.7
Excess property 5.1 5.6 17.8 20.5
Aviation 9.8 9.0 20.7 22.6
Other 3.6 2.0 13.4 4.8
----- ----- ----- -----
A.C.E. Insurance Subtotal $194.1 $169.1 $445.0 $420.2
Lloyd's syndicates 85.1 33.9 156.7 44.4
Tempest (including CAT) 39.3 20.4 91.2 94.6
ACE USA 54.0 -- 92.7 --
----- ----- ----- -----
Total $372.5 $223.4 $785.6 $559.2
----- ----- ----- -----
Net Premiums Written
A.C.E. Insurance
(including CODA):
Financial lines $ 96.0 $ 61.3 $152.4 $100.9
Excess Liability 16.7 41.8 61.6 114.8
Satellite 14.6 18.2 49.2 46.2
Directors & Officers
(D&O) 14.3 18.9 57.7 68.7
Excess property 4.7 5.3 16.0 20.2
Aviation 5.1 7.0 10.2 17.6
Other 2.8 2.0 10.7 4.6
----- ----- ----- -----
A.C.E. Insurance Subtotal $154.2 $154.5 $357.8 $373.0
Lloyd's syndicates 59.6 25.0 111.4 31.5
Tempest (including CAT) 38.9 16.0 86.5 90.2
ACE USA 28.5 -- 49.1 --
----- ----- ----- -----
Total $281.2 $195.5 $604.8 $494.7
----- ----- ----- -----
Net Premiums Earned
A.C.E. Insurance
(including CODA):
Financial lines $ 27.1 $ 26.2 $ 88.2 $ 69.6
Excess Liability 27.9 43.8 95.2 143.6
Satellite 12.9 18.0 47.7 48.1
Directors & Officers (D&O) 18.9 21.7 59.5 69.8
Excess property 4.7 6.0 15.2 15.2
Aviation 6.7 6.4 16.8 19.1
Other 1.2 2.8 8.5 8.6
----- ----- ----- -----
A.C.E. Insurance Subtotal $ 99.4 $124.9 $331.1 $374.0
Lloyd's syndicates 34.2 7.8 80.8 14.7
Tempest (including CAT) 55.6 30.9 105.1 97.9
ACE USA 23.9 -- 48.7 --
----- ----- ----- -----
Total $213.1 $163.6 $565.7 $486.6
----- ----- ----- -----
ACE Limited
Summary Consolidated Financial Data
(in thousands of U.S. dollars, except per share data)
June 30, September 30,
1998 1997
Balance Sheet Data:
Investments and cash:
Fixed maturities, at fair value
(amortized cost $4,727,538
and $3,226,511) $4,811,763 $3,290,336
Equity securities, at fair value
(cost $242,471 and $502,481) 268,509 634,970
Short-term investments, at fair
value (amortized cost $626,597
and $364,552) 626,820 364,432
Other investments, at fair value
(cost $88,018 and $78,691) 88,181 78,691
Cash 245,139 106,336
--------- ---------
Total investments and cash $6,040,412 $4,474,765
Total assets 7,971,454 5,001,546
Unpaid losses and loss expenses 2,628,875 1,869,995
Net unrealized appreciation on
investments (net of deferred
taxes of $1,406 and $0) 109,243 196,194
Total shareholders' equity 3,507,573 2,619,194
Fully diluted net asset value
per share $19.51 $15.71
ACE Limited
Consolidated Supplementary Information
(in millions of U.S. dollars)
June 30, 1998 September 30, 1997
Gross Net Net
Unpaid losses and loss
expenses:
Case and loss expense
reserves $1,411.9 $1,262.0 $ 924.2
IBNR loss reserves 1,992.3 1,392.4 945.8
------- ------- -------
$3,404.2 $2,654.4 $1,870.0
Reinsurance recoverables on
paid losses ( 25.5) --
------- -------
Total $2,628.9 $1,870.0
------- -------
ACE CORPORATE NEWS ANNOUNCEMENTS THIRD QUARTER 1998: June 25 - A.C.E. Insurance Increases Limits On Satellite Product Line A.C.E Insurance Company, Ltd. increased gross capacity on any single risk underwritten by the company's satellite product line from $50 million to $80 million. June 11 - ACE USA to Acquire Majority in Canadian Automotive Service Contracts Company ACE USA reached an agreement with Creditor An individual to whom an obligation is owed because he or she has given something of value in exchange. One who may legally demand and receive money, either through the fulfillment of a contract or due to injury sustained as a result of another's Negligence Resources Canada Limited (CRC (Cyclical Redundancy Checking) An error checking technique used to ensure the accuracy of transmitting digital data. The transmitted messages are divided into predetermined lengths which, used as dividends, are divided by a fixed divisor. ) to acquire the majority of all outstanding stock. CRC, a privately held marketer of credit insurance and vehicle service contracts based in Burnaby, British Columbia “Burnaby” redirects here. For persons sharing this surname, see Burnaby (surname). Burnaby, British Columbia, Canada, is the city immediately east of Vancouver. is the largest independent marketer of automotive service contracts in Canada. June 11 - Growth Accelerates at ACE USA ACE USA hired four new executives and promoted six internally. The four executives who joined the ACE USA team are Craig Landi from CNA (Certified NetWare Administrator) See Novell certification. , Jerry Wolk from American International Group
American International Group, Inc. (AIG) (NYSE: AIG; TYO: 8685 ) is a major American insurance corporation based in New York City. , Robert L. Traver from Travelers Property & Casualty and Shaun M. Fetherston from American Bankers American Banker is a daily newspaper covering the financial services industry. Founded in 1835 and based in New York, American Banker's 70 reporters and editors in six cities monitor developments and breaking news affecting banks. Insurance Group. Dennis Reding Reding may refer to: People
June 10 - ACE Launches Lloyd's Service Company ACE UK launched a new company which will allow ACE London at Lloyd's to trade more effectively with a selected group of Lloyd's and non-Lloyd's brokers. The company is called ACE Underwriting Services (AUS AUS abbr. Army of the United States ) and is aimed at the small to medium enterprise market in the UK. AUS will offer a range of commercial products under the Optimus name. AUS will initially market products underwritten by Syndicate Syndicate organized crime unit throughout major cities of the United States. [Am. Hist.: NCE, 2018] See : Gangsterism 219 and will eventually operate on behalf of all ACE London operations. April 28 - A.C.E. Insurance Company, Ltd. and ACE USA Offer Integrated Capacity in Excess Liability and Property Lines A.C.E. Insurance Company, Ltd. and ACE USA reached an agreement to provide coverage aggregating up to $250 million for Excess Liability and up to $100 million for Property. The combined offering is aimed at meeting client demand for large blocks of capacity from single insurers and reducing the market of carriers required to complete complex insurance programs. April 27 - ACE USA Establishes Two New Product Divisions ACE USA has established two new product divisions: Warranty and E&O. ACE USA President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. Dennis Reding said that the Warranty Division will be headed up by Marc Vivori in the company's headquarters in Atlanta and Rosemarie Rogers will oversee the development of E&O in ACE USA's newly established New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of office. April 1 - ACE Establishes Captive captive said of naturally wild or feral animals kept in captivity for educational and scientific investigation with no attempt being made to domesticate them. Reinsurance Facility; Industry Veteran to Head New Division ACE Limited established a captive reinsurance facility within the ACE group. Captive-type entities with a predominantly pre·dom·i·nant adj. 1. Having greatest ascendancy, importance, influence, authority, or force. See Synonyms at dominant. 2. casualty portfolio on both a single and multi-line basis will be the target market of the newly-created divisions. Bermudian Bruce M. Jones, who has over 20 years' experience in the insurance and reinsurance business, will head up the division. March 25 - Sovereign Signs Landmark Reinsurance Agreement with French Government Insurer An individual or company who, through a contractual agreement, undertakes to compensate specified losses, liability, or damages incurred by another individual. An insurer is frequently an insurance company and is also known as an underwriter. COFACE Coface The French Export Credit Agency. Sovereign Risk Sovereign Risk The risk that a foreign central bank will alter its foreign-exchange regulations thereby significantly reducing or completely nulling the value of foreign-exchange contracts. Insurance Ltd. signed a landmark reinsurance agreement with the French Government Export Credit Agency Export Credit Agency An agency established by a country to finance its nation's goods, investment, and services, often offers political risk insurance. , COFACE, in which Sovereign will be the lead reinsurer re·in·sure tr.v. re·in·sured, re·in·sur·ing, re·in·sures To insure again, especially by transferring all or part of the risk in a contract to a new contract with another insurance company. for COFACE's portfolio of French equity investments located in China. Sovereign will provide $70 million in capacity. SCOR SCOR Scientific Committee on Oceanic Research SCOR Supply Chain Operations Reference model SCOR Small Corporate Offering Registration SCOR Specialized Center of Research (White Plains, NY) SCOR Second Cousin Once Removed , the publicly-traded French reinsurer, will provide the balance of $10 million. The term of the reinsurance agreement between Sovereign, SCOR and COFACE is 10 years. Editor's Note Editor's Note (foaled in 1993 in Kentucky) is an American thoroughbred Stallion racehorse. He was sired by 1992 U.S. Champion 2 YO Colt Forty Niner, who in turn was a son of Champion sire Mr. Prospector and out of the mare, Beware Of The Cat. Trained by D. : ACE Limited's press releases are available at no charge through News on Demand Plus by dialing 888-329-8941. CONTACT: ACE Limited, Hamilton Investor Contact: Helen M. Wilson (441) 299-9283 or Media Contact: Wendy Davis Johnson (441) 299-9347 |
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