ACE Limited Reports Third Quarter 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)--Nov. 1, 2000 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. (losses) of $150.6 million for the quarter ended September September: see month. 30, 2000 compared with $68.6 million for the same quarter in 1999 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 $0.62 for the current quarter compared with $0.35 last year. Net income for the quarter ended September 30, 2000 was $140.8 million compared with $14.8 million in 1999 and earnings per share, after deducting preferred dividends, was $0.58 for the current quarter compared with $0.08 for the same quarter last year. Earnings per share calculations above are based on the weighted average number of shares calculated 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. The fully diluted book value per share of the company at September 30, 2000 was $22.41. 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, commented: "I am pleased that ACE had yet another excellent quarter with record operating earnings Operating Earnings Profits after subtracting expenses such as marketing, cost of goods sold, administration and general operating costs from revenue. Notes: Tax and interest expenses are not subtracted - operating earnings are synonymous with EBIT (earnings before per share and that for the first time, 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. has surpassed the $5 billion mark. The platform we have built positions us to capitalize on Cap´i`tal`ize on` v. t. 1. To turn (an opportunity) to one's advantage; to take advantage of (a situation); to profit from; as, to capitalize on an opponent's mistakes s>. the opportunities present in today's market." Mr. Duperreault continued, "The tremendous market acceptance of the ACE brand, coupled with improving market conditions, helped us to again show significant growth in production, while our commitment to maintaining our 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. standards continues to serve us well with all of our operating units operating unit A type of operating company that engages in transactions with outsiders and that is owned by another business. For example, in 1995 the stockholders of Capital Cities/ABC approved a $19 billion merger with the Walt Disney Company, whereupon once again reporting combined ratios under 100 percent." 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 29 percent to $2.0 billion, compared with $1.5 billion for the comparable quarter last year. Net premiums written during the quarter increased by 31 percent to $1.2 billion compared with $911 million for the same quarter last year. Net premiums earned during the quarter increased 23 percent to $1.2 billion from $953 million in the same quarter last year. Gross premiums written for the first nine months of fiscal 2000 were $5.9 billion compared with $2.5 billion for the same period last year. For the first nine months of fiscal 2000, net premiums written increased to $3.9 billion compared with $1.6 billion for the first nine months of fiscal 1999. Net premiums earned for the nine months ended September 30, 2000 were $3.4 billion compared with $1.5 billion for the same period last year. Net investment income, excluding net realized gains (losses), was $198 million for the fiscal 2000 third quarter, compared with $163 million for the same period last year, an increase of 21 percent. For the first nine months of fiscal 2000, net investment income, excluding net realized gains (losses), was $562 million compared with $334 million for the same quarter last year, a 68 percent increase. During the 2000 third quarter, ACE had 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. , net of tax, of $10 million, compared with net realized losses of $54 million for the same quarter last year. For the nine months ended September 30, 2000, net realized gains, net of tax, were $12 million, compared with net realized losses of $11 million for the nine months ended September 30, 1999. 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: www.acelimited.com. ACE Limited plans to host a live webcast of their third quarter earnings conference call on Wednesday Wednesday: see week. , November November: see month. 1, 2000, 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, through the Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the at www.acelimited.com. 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
starting on Wednesday, November 1, 2000 approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 2 hours following the webcast until November 8, 2000 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, market acceptance of ACE could change as a result of competition in the industry or as a result of perceptions, which ACE may not be able to predict or control. Pricing, demand and competition in the industry may also affect market conditions as well as ACE's business opportunities. ACE's forward-looking statements could be affected by the levels of new and renewal business achieved; market conditions affecting ACE's investments; the frequency of unpredictable catastrophic events; differences between estimates and actual reported losses; economic, 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. , insurance and reinsurance business conditions; and other factors identified in the Company's filings with the Securities and Exchange Commission. 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 Nine Months Ended
September 30 September 30
2000 1999 2000 1999
-----------------------------------------------
Operations Data:
Gross premiums
written $1,999,816 $1,544,458 $5,946,843 $2,488,952
Net premiums written 1,196,804 910,904 3,867,711 1,643,838
Net premiums earned 1,174,782 952,951 3,447,424 1,538,489
Losses and loss
expenses 772,887 632,910 2,256,481 1,045,262
Policy acquisition costs 168,258 137,681 482,628 203,505
Administrative expenses 177,912 198,264 554,784 294,063
-------- -------- --------- ----------
Underwriting income
(loss) 55,725 (15,904) 153,531 (4,341)
Net investment income 197,584 163,060 561,548 334,338
Amortization of goodwill 19,919 17,474 58,889 26,408
Interest expense 55,408 44,068 166,544 52,745
Income tax expense 27,429 13,149 71,981 22,799
-------- -------- --------- ----------
Income excluding
net realized gains
(losses)and
non-recurring expenses 150,553 72,465 417,665 228,045
Non-recurring expenses
(net of income tax) - (3,900) - (3,900)
-------- --------- --------- ----------
Income excluding
net realized gains
(losses) 150,553 68,565 417,665 224,145
Net realized gains
(losses) (net of
income tax) (9,800) (53,772) 11,529 (11,211)
--------- --------- --------- ----------
Net income $ 140,753 $ 14,793 $ 429,194 $ 212,934
Basic EPS:(1) ========= ========= ========= ==========
Earnings per share
excluding net
realized gains
(losses) and
non-recurring expenses $0.64 $0.37 $1.86 $1.18
Earnings per share
excluding net realized
gains (losses) $0.65 $0.35 $1.86 $1.16
Earnings per share $0.60 $0.08 $1.92 $1.10
Weighted average
shares outstanding 222,042,432 194,061,171 217,615,849 193,935,790
Diluted EPS:(1)
Earnings per share
excluding net realized
gains (losses) and
non-recurring expenses $0.62 $0.37 $1.83 $1.16
Earnings per share
excluding net realized
gains (losses) $0.62 $0.35 $1.83 $1.14
Earnings per share $0.58 $0.08 $1.88 $1.08
Weighted average
shares outstanding 231,385,699 196,072,652 222,047,554 196,917,128
(1) EPS calculations provided on page 13 of this release.
----------------------------------------------------------------------
ACE Limited
Consolidated Supplementary Segment Information
(in millions of U.S. dollars)
----------------------------------------------------------------------
Three Months Ended Nine Months Ended
September 30 September 30
------------------------ ---------------------
2000 1999 2000 1999
----- ---- ---- ----
Gross Premiums Written
-----------------------
ACE Bermuda $ 199.7 $ 130.5 $ 510.8 $ 432.8
ACE Global Markets 239.5 183.6 752.8 530.1
ACE Global Reinsurance 30.8 24.2 178.2 184.7
ACE USA 974.9 744.2 2,662.5 879.4
ACE International 496.9 462.0 1,553.9 462.0
ACE Financial Services 58.0 - 288.6 -
-------- -------- -------- --------
Total $1,999.8 $1,544.5 $5,946.8 $2,489.0
-------- -------- -------- --------
Net Premiums Written
--------------------
ACE Bermuda $ 181.6 $ 106.7 $ 446.3 $ 346.1
ACE Global Markets 176.7 110.6 551.2 376.8
ACE Global Reinsurance 12.8 (8.5) 146.2 149.9
ACE USA 450.5 370.3 1,369.8 439.2
ACE International 324.8 331.8 1,080.3 331.8
ACE Financial Services 50.4 - 273.9 -
-------- -------- -------- --------
Total $1,196.8 $ 910.9 $3,867.7 $1,643.8
-------- -------- -------- --------
Net Premiums Earned
--------------------
ACE Bermuda $ 170.3 $ 125.8 $ 356.2 $ 397.7
ACE Global Markets 174.3 98.9 454.6 288.4
ACE Global Reinsurance 37.7 35.3 96.0 109.3
ACE USA 410.5 342.7 1,256.1 392.9
ACE International 339.1 350.2 1,037.4 350.2
ACE Financial Services 42.9 - 247.1 -
-------- -------- -------- --------
Total $1,174.8 $ 952.9 $3,447.4 $1,538.5
-------- -------- -------- --------
----------------------------------------------------------------------
ACE Limited
Summary Consolidated Financial Data
(in thousands of U.S. dollars, except per share data)
----------------------------------------------------------------------
September 30, December 31,
2000 1999
------------- ------------
--------------------- ----------------------
Balance Sheet Data:
Assets
Fixed maturities available for
sale, at fair value (amortized
cost $10,754,918 and $10,080,402) $10,661,968 $ 9,849,803
Equity securities, at fair value
(cost $559,541 and $780,558) 637,400 933,314
Short-term investments, at
fair value (amortized cost
$1,362,712 and $1,194,956) 1,362,712 1,192,875
Other investments, at fair value
(cost $474,699 and $303,714) 484,880 300,311
Cash 616,971 599,232
----------- -----------
----- ------- ----- -------
Total investments and cash $13,763,931 $12,875,535
Insurance and reinsurance
balances receivable 2,159,443 2,018,788
Accounts and notes receivable 514,560 533,863
Reinsurance recoverable 8,704,161 8,840,081
Deferred policy acquisition costs 567,161 514,425
Goodwill 2,857,528 2,822,718
Deferred tax assets 1,090,709 916,184
Other assets 1,874,607 1,601,294
----------- -----------
Total assets $31,532,100 $30,122,888
=========== ===========
========== ==========
Liabilities
Unpaid losses and loss expenses $17,401,981 $16,460,247
Unearned premiums 3,132,914 2,428,828
Insurance and reinsurance
balances payable 1,155,487 1,735,956
Contract holder deposit funds 143,693 201,079
Accounts payable, accrued
expenses and other liabilities 1,469,776 1,772,405
Short-term debt 377,466 1,074,585
Long-term debt 1,424,228 1,424,228
Trust preferred securities 875,000 575,000
----------- -----------
Total liabilities $25,980,545 $25,672,328
----------- -----------
Commitments and contingencies
Mezzanine equity
Feline PRIDES $ 311,050 $ -
----------- -----------
Shareholders' equity
Ordinary shares ($0.041666667
par value, 300,000,000 shares
authorized; 231,844,741 and
217,460,515 shares issued
and outstanding) $ 9,660 $ 9,061
Additional paid-in capital 2,629,108 2,214,989
Unearned stock grant compensation (31,712) (28,908)
Retained earnings 2,656,608 2,321,570
Accumulated other
comprehensive loss (23,159) (66,152)
---------- ---------
Total shareholders' equity $ 5,240,505 $ 4,450,560
---------- ---------
Total liabilities, mezzanine
equity and shareholders'
equity $31,532,100 $30,122,888
========== ==========
----------------------------------------------------------------------
ACE Limited
Supplemental Information by Segment
Three months ended September 30, 2000
(in thousands of U.S. dollars)
----------------------------------------------------------------------
ACE ACE
ACE Global Global ACE
Bermuda Markets Reinsurance USA
------- --------- ----------- -----
Operations Data by
Segment:
Gross premiums written $ 199,741 $ 239,484 $ 30,750 $ 974,862
Net premiums written 181,573 176,672 12,811 450,518
Net premiums earned 170,292 174,266 37,707 410,472
Losses and loss expenses 132,701 102,503 5,813 307,692
Policy acquisition costs 7,565 44,844 6,180 40,430
Administrative expenses 7,494 18,499 2,957 58,631
-------- ------- ------- -------
Underwriting income (loss) 22,532 8,420 22,757 3,719
Net investment income 38,906 7,932 15,056 89,599
Amortization of goodwill (225) 965 3,503 135
Interest expense 908 1,897 -- 11,404
Income tax expense
(benefit) 655 5,623 -- 26,238
------ ------ ------- ------
Income (loss) excluding net
realized gains (losses) 60,100 7,867 34,310 55,541
Net realized gains (losses)
(net of income tax) 7,135 (1,245) (12,433) (5,989)
------ ------ ------- ------
Net income (loss) $ 67,235 $ 6,622 $ 21,877 $ 49,552
====== ====== ======= ======
Losses and loss expense
ratio 77.9% 58.8% 15.4% 75.0%
Policy acquisition cost
ratio 4.5% 25.7% 16.4% 9.8%
Administrative expense
ratio 4.4% 10.6% 7.9% 14.3%
Combined ratio 86.8% 95.1% 39.7% 99.1%
ACE ACE
Inter- Financial ACE
national Services Other(1) Consolidated
-------- -------- -------- ------------
Operations Data by
Segment:
Gross premiums written $ 496,953 $ 58,026 $ -- $ 1,999,816
Net premiums written 324,779 50,451 -- 1,196,804
Net premiums earned 339,101 42,944 -- 1,174,782
Losses and loss expenses 205,976 18,202 -- 772,887
Policy acquisition costs 59,339 9,900 -- 168,258
Administrative expenses 68,552 7,665 14,114 177,912
------- ------ ------ ---------
Underwriting income (loss) 5,234 7,177 (14,114) 55,725
Net investment income 24,612 24,168 (2,689) 197,584
Amortization of goodwill -- 1,051 14,490 19,919
Interest expense -- 3,378 37,821 55,408
Income tax expense
(benefit) 4,400 6,403 (15,890) 27,429
----- ----- -------- -------
Income (loss) excluding net
realized gains (losses) 25,446 20,513 (53,224) 150,553
Net realized gains (losses)
(net of income tax) 492 2,030 210 (9,800)
----- ------ ------- -------
Net income (loss) $ 25,938 $ 22,543 $ (53,014) $ 140,753
====== ====== ======= =======
Losses and loss expense
ratio 60.7% 42.4% 65.8%
Policy acquisition cost
ratio 17.5% 23.1% 14.3%
Administrative expense
ratio 20.3% 17.8% 15.1%
Combined ratio 98.5% 83.3% 95.3%
----------------------------------------------------------------------
(1) Includes ACE Limited, ACE INA Holdings and intercompany
eliminations
ACE Limited
Supplemental Information by Segment
Three months ended September 30, 1999
(in thousands of U.S. dollars)
----------------------------------------------------------------------
ACE ACE
ACE Global Global ACE
Bermuda Markets Reinsurance USA
------- ---------- ----------- -----
Operations Data by
Segment:
Gross premiums written $ 130,478 $ 183,570 $ 24,234 $ 744,161
Net premiums written 106,686 110,594 (8,482) 370,338
Net premiums earned 125,825 98,907 35,317 342,698
Losses and loss expenses 105,290 60,218 17,388 251,380
Policy acquisition costs 4,183 25,158 5,846 35,739
Administrative expenses 9,615 12,146 3,598 83,916
------- ------- ------ ------
Underwriting income (loss) 6,737 1,385 8,485 (28,337)
Net investment income 37,341 8,095 13,531 84,138
Amortization of goodwill (210) 1,056 3,503 --
Interest expense (income) (2,679) 812 -- 9,992
Income tax expense
(benefit) 546 3,037 -- 11,096
------ ------- ------ ------
Income (loss) excluding net
realized losses and non-
recurring expenses 46,421 4,575 18,513 34,713
Non-recurring expenses
(net of income tax) -- -- -- (2,340)
------ ------ ------- ------
Income (loss) excluding net
realized gains (losses) 46,421 4,575 18,513 32,373
Net realized gains (losses)
(net of income tax) (34,483) (1,474) (10,626) (2,966)
-------- ------- -------- ------
Net income (loss) $ 11,938 $ 3,101 $ 7,887 $ 29,407
======== ======= ======== ======
Losses and loss expense
ratio 83.7% 60.9% 49.2% 73.4%
Policy acquisition cost
ratio 3.3% 25.4% 16.6% 10.4%
Administrative expense
ratio 7.6% 12.3% 10.2% 24.5%
Combined ratio 94.6% 98.6% 76.0% 108.3%
ACE
Inter- ACE
national Other (1) Consolidated
-------- --------- ------------
Operations Data by
Segment:
Gross premiums written $ 462,015 $ -- $1,544,458
Net premiums written 331,768 -- 910,904
Net premiums earned 350,204 -- 952,951
Losses and loss expenses 198,634 -- 632,910
Policy acquisition costs 66,755 -- 137,681
Administrative expenses 73,999 14,990 198,264
------- ------ --------
Underwriting income (loss) 10,816 (14,990) (15,904)
Net investment income 17,968 1,987 163,060
Amortization of goodwill -- 13,125 17,474
Interest expense (income) -- 35,943 44,068
Income tax expense
(benefit) 10,154 (11,684) 13,149
Income (loss) excluding net ------ -------- ------
realized losses and non-
recurring expenses 18,630 (50,387) 72,465
Non-recurring expenses
(net of income tax) (1,560) - (3,900)
------ ------- ------
Income (loss) excluding net
realized gains (losses) 17,070 (50,387) 68,565
Net realized gains (losses)
(net of income tax) (2,976) (1,247) (53,772)
------ ------- ------
Net income (loss) $ 14,094 $ (51,634) $ 14,793
====== ======= ======
Losses and loss expense
ratio 56.7% 66.4%
Policy acquisition cost
ratio 19.1% 14.4%
Administrative expense
ratio 21.1% 20.8%
Combined ratio 96.9% 101.6%
----------------------------------------------------------------------
(1)Includes ACE Limited, ACE INA Holdings and intercompany
eliminations
ACE Limited
Supplemental Information by Segment
Nine months ended September 30, 2000
(in thousands of U.S. dollars)
----------------------------------------------------------------------
ACE ACE
ACE Global Global ACE
Bermuda Markets Reinsurance USA
-------- -------- ----------- -----
Operations Data by
Segment:
Gross premiums written $ 510,788 $ 752,791 $ 178,223 $2,662,542
Net premiums written 446,297 551,140 146,265 1,369,785
Net premiums earned 356,164 454,599 96,062 1,256,042
Losses and loss expenses 265,002 258,271 17,474 938,783
Policy acquisition costs 14,648 119,577 17,877 118,498
Administrative expenses 22,278 54,069 7,806 188,552
-------- ------ ------- ------
Underwriting income (loss) 54,236 22,682 52,905 10,209
Net investment income 111,240 23,420 44,839 251,542
Amortization of goodwill (658) 2,990 10,508 405
Interest expense 1,598 4,080 -- 28,009
Income tax expense
(benefit) 1,920 11,069 (173) 72,991
-------- ------ ------- -------
Income (loss) excluding net
realized gains (losses) 162,616 27,963 87,409 160,346
Net realized gains (losses)
(net of income tax) 31,432 (2,193) (20,378) (16,836)
------- ------- ------- -------
Net income (loss) $194,048 $ 25,770 $ 67,031 $ 143,510
======= ======= ====== =======
Losses and loss expense
ratio 74.4% 56.8% 18.2% 74.8%
Policy acquisition cost
ratio 4.1% 26.3% 18.6% 9.5%
Administrative expense
ratio 6.3% 11.9% 8.2% 15.1%
Combined ratio 84.8% 95.0% 45.0% 99.2%
ACE ACE
Inter- Financial ACE
national Services Other(1) Consolidated
-------- --------- -------- -----------
Operations Data by
Segment:
Gross premiums written $1,553,853 $ 288,646 $ -- $5,946,843
Net premiums written 1,080,317 273,907 -- 3,867,711
Net premiums earned 1,037,411 247,146 -- 3,447,424
Losses and loss expenses 613,942 163,009 -- 2,256,481
Policy acquisition costs 173,462 38,566 -- 482,628
Administrative expenses 211,589 23,705 46,785 554,784
------- ------- ------- --------
Underwriting income (loss) 38,418 21,866 (46,785) 153,531
Net investment income 69,498 71,002 (9,993) 561,548
Amortization of goodwill -- 3,154 42,490 58,889
Interest expense -- 10,016 122,841 166,544
Income tax expense
(benefit) 19,235 15,664 (48,725) 71,981
------- ------- ------ -------
Income (loss) excluding net
realized gains (losses) 88,681 64,034 (173,384) 417,665
Net realized gains (losses)
(net of income tax) 19,779 1,566 (1,841) 11,529
------- ------- ------- -------
Net income (loss) $ 108,460 $ 65,600 $(175,225) $ 429,194
======= ======= ======== ========
Losses and loss expense
ratio 59.2% 66.0% 65.5%
Policy acquisition cost
ratio 16.7% 15.6% 14.0%
Administrative expense
ratio 20.4% 9.6% 16.1%
Combined ratio 96.3% 91.2% 95.6%
----------------------------------------------------------------------
(1) Includes ACE Limited, ACE INA Holdings and intercompany
eliminations
ACE Limited
Supplemental Information by Segment
Nine months ended September 30, 1999
(in thousands of U.S. dollars)
----------------------------------------------------------------------
ACE ACE
ACE Global Global ACE
Bermuda Markets Reinsurance USA
------- -------- --------- -----
Operations Data by Segment:
Gross premiums written $ 432,748 $ 530,137 $ 184,667 $ 879,385
Net premiums written 346,081 376,856 149,903 439,230
Net premiums earned 397,748 288,374 109,303 392,860
Losses and loss expenses 302,203 168,170 93,646 282,609
Policy acquisition costs 11,034 75,838 15,442 34,436
Administrative expenses 31,052 37,003 9,607 102,432
------- ------ ------- -------
Underwriting income (loss) 53,459 7,363 (9,392) (26,617)
Net investment income 134,653 20,723 45,498 108,926
Amortization of goodwill (626) 3,155 10,508 246
Interest expense 4,705 3,037 -- 23,974
Income tax expense
(benefit) 1,502 7,344 -- 15,483
------- ------ ------- -------
Income (loss) excluding net
realized losses and non-
recurring expenses 182,531 14,550 25,598 42,606
Non-recurring expenses
(net of income tax) -- -- -- (2,340)
------- ------ ------ ------
Income (loss) excluding net
realized gains (losses) 182,531 14,550 25,598 40,266
Net realized gains (losses)
(net of income tax) 22,389 (3,410) (15,070) (2,946)
------ ------ ------- ------
Net income (loss) $ 204,920 $ 11,140 $ 10,528 $ 37,320
======= ====== ======= ======
Losses and loss expense
ratio 76.0% 58.3% 85.7% 71.9%
Policy acquisition cost
ratio 2.8% 26.3% 14.1% 8.8%
Administrative expense
ratio 7.8% 12.8% 8.8% 26.1%
Combined ratio 86.6% 97.4% 108.6% 106.8%
ACE
Inter- ACE
national Other (1) Consolidated
-------- --------- -----------
Operations Data by
Segment:
Gross premiums written $ 462,015 $ -- $2,488,952
Net premiums written 331,768 -- 1,643,838
Net premiums earned 350,204 -- 1,538,489
Losses and loss expenses 198,634 -- 1,045,262
Policy acquisition costs 66,755 -- 203,505
Administrative expenses 73,999 39,970 294,063
------- ------ --------
Underwriting income (loss) 10,816 (39,970) (4,341)
Net investment income 17,968 6,570 334,338
Amortization of goodwill -- 13,125 26,408
Interest expense -- 21,029 52,745
Income tax expense
(benefit) 10,154 (11,684) 22,799
------ -------- -------
Income (loss) excluding net
realized losses and non-
recurring expenses 18,630 (55,870) 228,045
Non-recurring expenses
(net of income tax) (1,560) - (3,900)
------ ------ -------
Income (loss) excluding net
realized gains (losses) 17,070 (55,870) 224,145
Net realized gains (losses)
(net of income tax) (2,976) (9,198) (11,211)
------ ------- -------
Net income (loss) $ 14,094 $ (65,068) $ 212,934
====== ======= ========
Losses and loss expense
ratio 56.7% 67.9%
Policy acquisition cost
ratio 19.1% 13.2%
Administrative expense
ratio 21.1% 19.1%
Combined ratio 96.9% 100.2%
----------------------------------------------------------------------
(1) Includes ACE Limited, ACE INA Holdings and intercompany
eliminations
ACE Limited
Supplementary Information
September 30, 2000
(in millions of U.S. dollars)
----------------------------------------------------------------------
including fees
Interest Expense
including fees
Balance Quarter Ended
Sept. 30, 2000 Coupon Rate Sept. 30, 2000
-------------- ---------- --------------
Short-term Debt
ACE INA commercial paper $ 352 Floating $ 6
Capital Re Note due 2000 25 Floating 1
---- --
$ 377 $ 7
---- ----
Long-term Debt
Capital Re Debentures
due 2002 $ 75 7.75% $ 1
ACE INA Notes due 2004 400 8.20% 8
ACE INA Notes due 2006 299 8.30% 6
ACE INA Debentures due 2029 100 8.875% 2
ACE US Senior Notes due 2008 250 6.47% 4
ACE INA Subordinated Notes
due 2009 300 8.41% 6
---- --
$1,424 $ 27
----- --
Trust Preferred Securities
ACE INA Rhino Preferred
Securities due 2002 $ 400 Libor + 1.25% $ 8
Capital Re Mandatorily
Redeemable Preferred
Securities due 2044 75 7.65% 1
ACE INA Trust Preferred
Securities due 2029 100 8.875% 2
ACE INA Capital
Securities due 2030 300 9.70% 7
---- --
$ 875 $ 18
---- --
Other 3
--
$ 55
==
----------------------------------------------------------------------
Balance
Sept. 30, 2000 Dividend Rate Dividend
-------------- ----------- ---------
Mezzanine equity
Feline PRIDES $ 311 8.25% $ 6
--
---
----------------------------------------------------------------------
ACE Limited
Supplemental Information by Segment
Net premiums written by type of premium
(in millions of U.S. dollars)
----------------------------------------------------------------------
Property & Life & Financial
Casualty Health Products
---------- ------- ----------
Three months
ended September 30, 2000
ACE Bermuda $ 113.4 $ - $ 68.2
ACE Global Markets 170.7 6.0 -
ACE Global Reinsurance 12.8 - -
ACE USA 417.5 - 33.0
ACE International 293.6 31.2 -
ACE Financial Services - - 50.4
-------- ------ ------
Total $1,008.0 $ 37.2 $151.6
-------- ------ ------
Nine months
ended September 30, 2000
ACE Bermuda $ 228.4 $ - $217.9
ACE Global Markets 509.0 42.2 -
ACE Global Reinsurance 146.2 - -
ACE USA 1,149.9 - 219.9
ACE International 801.0 279.3 -
ACE Financial Services - - 273.9
-------- ------ ------
Total $2,834.5 $321.5 $711.7
======== ====== ======
----------------------------------------------------------------------
ACE Limited
Consolidated Supplementary Information
Computation of Basic and Diluted Earnings per Share
(in thousands of U.S. dollars, except share and per share data)
----------------------------------------------------------------------
Three Months Ended Nine Months Ended
September 30 September 30
2000 1999 2000 1999
---- ---- ---- ----
Numerator:
Income excluding net
realized gains (losses)$150,553 $ 68,565 $ 417,665 $ 224,145
Feline PRIDES dividend (6,537) - (11,862) -
-------- ------ ------- -------
Income excluding net
realized gains(losses)
available to the holders
of ordinary shares 144,016 68,565 405,803 224,145
Net realized gains (losses)
(net of income tax) (9,800) (53,772) 11,529 (11,211)
-------- ------ ------- -------
Net income available to
the holders of ordinary
shares $134,216 $ 14,793 $ 417,332 $ 212,934
-------- ------ ------- -------
Denominator:
Denominator for basis
earnings per share:
Weighted average
shares outstanding 222,042,432 194,061,171 217,615,849 193,935,790
Dilutive effect
of Feline PRIDES 2,663,691 - - -
Effect of other
dilutive securities 6,679,576 2,011,481 4,431,704 2,981,338
----------- --------- ---------- ----------
Denominator for diluted
earnings per share:
Adjusted weighted average
shares outstanding and
assumed conversions 231,385,699 196,072,652 222,047,554 196,917,128
----------- -------- ---------- ----------
Basic earnings
per share:
Earnings per share
excluding net realized
gains (losses) $0.65 $0.35 $1.86 $1.16
Earnings per share $0.60 $0.08 $1.92 $1.10
Diluted earnings per share:
Earnings per share
excluding net realized
gains (losses) $0.62 $0.35 $1.83 $1.14
Earnings per share $0.58 $0.08 $1.88 $1.08
----------------------------------------------------------------------
ACE Corporate Announcements - Third Quarter, 2000 ------------------------------------------------- September 15, 2000 - David Skinner
David Skinner is an assistant managing editor at The Weekly Standard whose articles frequently appear in the magazine or on its Web site. Appointed ap·point tr.v. ap·point·ed, ap·point·ing, ap·points 1. To select or designate to fill an office or a position: appointed her the chief operating officer of the company. 2. CFO See Chief Financial Officer. at ACE Europe Europe (y  r`əp), 6th largest continent, c.4,000,000 sq mi (10,360,000 sq km) including adjacent islands (1992 est. pop. 512,000,000). ACE Limited announced that David Skinner, Manager-Group Financial Planning Financial planning Evaluating the investing and financing options available to a firm. Planning includes attempting to make optimal decisions, projecting the consequences of these decisions for the firm in the form of a financial plan, and then comparing future performance against and Analysis, has been appointed to the position of Chief Financial Officer of ACE Europe. ACE Europe, which is based in London London, city, Canada London, city (1991 pop. 303,165), SE Ont., Canada, on the Thames River. The site was chosen in 1792 by Governor Simcoe to be the capital of Upper Canada, but York was made capital instead. London was settled in 1826. , England England, the largest and most populous portion of the United Kingdom of Great Britain and Northern Ireland (1991 pop. 46,382,050), 50,334 sq mi (130,365 sq km). It is bounded by Wales and the Irish Sea on the west and Scotland on the north. , is the European European emanating from or pertaining to Europe. European bat lyssavirus see lyssavirus. European beech tree fagussylvaticus. European blastomycosis see cryptococcosis. regional organization of ACE International, the international operations Internal Operations (I.O., IO or I/O) is a fictional American Intelligence Agency in Wildstorm comics. It was originally called International Operations. I.O. first appeared in WildC.A.T.S. volume 1 #1 (August, 1992) and was created by Brandon Choi and Jim Lee. of ACE INA Ina (ē`nä), city (1990 pop. 60,062), Nagano prefecture, central Honshu, Japan, on the Tenryu River. It is an agricultural and industrial center with a famous agricultural school. Holdings, Inc., a wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. of ACE Limited. Mr. Skinner's appointment is effective November 1. August 23, 2000 - Syndicate Syndicate organized crime unit throughout major cities of the United States. [Am. Hist.: NCE, 2018] See : Gangsterism 2488 Awarded Moody's Moody's Corporation (NYSE: MCO) is the holding company for Moody's Investors Service which performs financial research and analysis on commercial and government entities. The company also ranks the credit-worthiness of borrowers using a standardized ratings scale. Insurance Financial Strength Rating of Aa2 (Excellent) Syndicate 2488 at 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 was awarded a Moody's Insurance Financial Rating ("FSR (Free System Resource) In Windows 3.x, the amount of unused memory in various 64K blocks reserved for managing current applications. Every open window takes some space in this area. See Windows memory limitation. ") of Aa2 (Excellent). The Syndicate is the first at Lloyd's to be awarded a FSR, a rating that is directly comparable with those of other insurance entities around the globe. Syndicate 2488 is managed by ACE Global Markets, a subsidiary of ACE Limited, and is currently the largest single syndicate at Lloyd's with a capacity of (pound)600 million for 2000 year of account. August 17, 2000 - ACE Acquires Majority Stake in Egyptian Insurance Company ACE International announced that it has acquired a 51 percent shareholding in Egyptian American Egyptian Americans are Americans of Egyptian ancestry, first-generation Egyptian immigrants, or descendants of Egyptians who immigrated to the United States. A large community of Egyptian Americans is located in northeastern Virginia and the Washington, DC, metropolitan area. Insurance Company (EAIC). In a partnership with Egypt-based Commercial International Investment Company (CIIC CIIC Controlled Inventory Item Code CIIC Correctional Institutional Inspection Committee CIIC Civilian Illness and Injury Compensation CIIC Construction Industry Information and Computing (group) ), which acquired the remaining balance, the company's ACE INA International Holdings Limited subsidiary acquired EAIC from AL CHARK n. 1. Charcoal; a cinder. v. t. 1. To burn to a coal; to char. [ imp. & p. p. os> r>.] , Egypt's second largest public insurance company. August 7, 2000 - ACE Global Markets and Hammond Hammond. 1 City (1990 pop. 84,236), Lake co., extreme NW Ind., bounded by Lake Michigan, the Ill. state line, and the Little Calumet River, and traversed by the Grand Calumet River; settled 1851, inc. 1884. Suddards Edge Launch Dedicated Solicitor solicitor, in English law, person duly admitted to practice before the supreme court of judicature. He is the agent of the person whose suit he handles, and is distinguished from a barrister, who argues cases before the judge (see attorney). Claims Service ACE Global Markets and Hammond Suddards Edge, the UK's seventh largest commercial law firm, announced the launch of a dedicated claims service for solicitors. From September 1, 2000, solicitors will purchase the first layer of their compulsory Wikipedia does not currently have an encyclopedia article for . You may like to search Wiktionary for "" instead. To begin an article here, feel free to [ edit this page], but please do not create a mere dictionary definition. professional indemnity Recompense for loss, damage, or injuries; restitution or reimbursement. An indemnity contract arises when one individual takes on the obligation to pay for any loss or damage that has been or might be incurred by another individual. cover from the open market. ACE Global Markets (AGM AGM annual general meeting AGM n abbr (= annual general meeting) → AG f AGM n abbr (= annual general meeting) → JHV f ) was one of the first insurers to be approved by the Law Society to provide professional indemnity cover under the new open market arrangements. The policies will be led and underwritten by Syndicate 2488 via traditional brokers and AGM's service company, ACE Underwriting Services Ltd. (AUS AUS abbr. Army of the United States ). July July: see month. 24, 2000 - Tempest Re USA Announces New Executive Team Tempest Re USA, a wholly-owned subsidiary of ACE INA Holdings Inc., underwriting on behalf of ACE American American, river, 30 mi (48 km) long, rising in N central Calif. in the Sierra Nevada and flowing SW into the Sacramento River at Sacramento. The discovery of gold at Sutter's Mill (see Sutter, John Augustus) along the river in 1848 led to the California gold rush of Insurance Company and ACE Property and Casualty Insurance Company, announced additional appointments to its executive team. Jacques Jacques [ʒɑk] (French for Jacob and James) can refer to: People with the surname of Jacques:
July 13, 2000 - ACE International Enhances Online Presence in Latin America Latin America, the Spanish-speaking, Portuguese-speaking, and French-speaking countries (except Canada) of North America, South America, Central America, and the West Indies. ; Named Exclusive Accident/Medical 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. for FuturoSeguro. ACE International announced it has entered into an alliance with FuturoSeguro and will serve as the exclusive provider of accident and medical insurance products offered through the new www.FuturoSeguro.com site. The website, which was officially launched July 12, 2000, is the first tri-lingual Pan-American Pan-A·mer·i·can adj. Of or relating to North, South, and Central America. Pan-American Adjective of North, South, and Central America collectively site that enables Spanish-, Portuguese- and English-speaking adj. 1. able to communicate in English. Adj. 1. English-speaking - able to communicate in English communicatory, communicative - able or tending to communicate; "was a communicative person and quickly told all she knew"- W.M. individuals and businesses in Latin America and the U.S. to purchase and receive insurance coverage and services immediately online. |
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