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 25, 1995--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. ) Tuesday Tuesday: see week. 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 $47.5 million, or $1.01 per share, for the fiscal 1995 third quarter ended June June: see month. 30, 1995. This compares with a loss of $160.6 million, or $3.39 per share, for the same period last year. Net income for the quarter was $97.4 million, or $2.08 per share, compared with a net loss of $205.3 million, or $4.33 per share, for the same quarter last year. For the nine months ended June 30, 1995, income excluding net realized gains (losses) was $140.5 million, or $2.97 per share, compared with a loss of $92.7 million, or $1.91 per share, for the same period last year. Net income was $150.7 million, or $3.19 per share, versus a net loss of $90.4 million, or $1.86 per share, for the first nine months of fiscal 1994. The net losses reported in fiscal 1994 were the result of a $200 million charge against earnings in the third quarter for increases to reserves for unpaid losses and loss expenses, primarily related to breast implant breast implant, saline- or silicone-filled prosthesis used after mastectomy as a part of the breast reconstruction process or used cosmetically to augment small breasts. litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. . At June 30, 1995, total 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. was in excess of $1.3 billion, fully 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. net asset value per share was $29.20, and total assets were in excess of $3.0 billion. "In the third quarter our new product lines received a welcome reception and our financial position continued to strengthen while we succeeded in reducing our risk exposure," 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, president and chief executive officer. "Due to a reduction in limits and an increase in the attachment point in excess liability, ACE's overall risk exposure decreased more than the corresponding reduction in premium. We have the ability to price our products commensurate com·men·su·rate adj. 1. Of the same size, extent, or duration as another. 2. Corresponding in size or degree; proportionate: a salary commensurate with my performance. 3. with the level of risk we assume and still remain the 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. of choice for multinational corporations
Duperreault continued: "During the third quarter, we repurchased 859,500 ACE shares at a total cost of approximately $22.0 million. The stock price during the quarter presented a good opportunity to utilize our capital through repurchasing." Net premiums written during the third quarter were $105.6 million compared with $106.4 million for the same period last year. Net premiums earned during the quarter rose 9.1 percent to $107.5 million versus $98.5 million earned in the third quarter last year. For the first nine months of fiscal 1995, net premiums written grew 7.8 percent to $319.0 million versus $295.8 million for the first nine months of 1994. Net premiums earned for this period were $318.1 million compared with $286.7 million for the same period last year, a 10.9 percent increase. Net investment income was $46.5 million for the third quarter, an increase of 26.2 percent, compared with $36.9 million for the same quarter last year. For the first nine months of fiscal 1995, net investment income was $134.8 million compared with $101.9 million for the same period last year, a 32.2 percent increase. During the quarter, net realized gains totaled $49.9 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 $44.6 million for the same quarter in 1994. For the nine months ended June 30, 1995 net realized gains were $10.2 million, compared with net realized gains of $2.3 million for the first nine months of fiscal 1994. ACE Limited, through its wholly owned insurance subsidiaries, is the leading provider of excess directors and officers liability insurance Directors and Officers Liability Insurance is insurance payable to the directors and officers of a company to cover damages or defence costs in the event they are sued for wrongful acts while they were with that company. in the world, and one of the leading providers of high level excess liability insurance. ACE also offers satellite insurance, financial lines, aviation products and excess property insurance. The Bermuda-based company provides coverage to a diverse group of the world's largest enterprises. At June 30, 1995, ACE Limited had in excess of $1.3 billion in shareholders' equity and in excess of $3.0 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,
1995 1994 1995 1994
Operations Data:
Net premiums written $105,597 $106,356 $318,964 $295,800 Net premiums earned 107,475 98,510 318,108 286,714 Net investment income 46,520 36,867 134,784 101,932 Losses and loss expenses 87,895 280,846 260,268 435,104 Acquisition costs 11,378 11,690 35,008 34,145 Administrative expenses 7,182 3,474 17,112 12,102 Income (loss) excluding net realized gains (losses) 47,540 (160,633) 140,504 (92,705) Net realized gains (losses) 49,885 (44,640) 10,217 2,349 Net income (loss) $97,425 $(205,273) $150,721 $(90,356) Earnings (loss) per share $2.08 $(4.33) $3.19 $(1.86) Earnings (loss) per share excluding net realized gains (losses) $1.01 $(3.39) $2.97 $(1.91) Weighted average shares outstanding 46,872,672 47,452,224 47,230,973 48,478,071
Sept. 30, June 30,
1995 1994
Balance Sheet Data:
Total investments and cash $ 3,006,908 $2,538,321 Total assets 3,103,904 2,632,361 Unpaid losses and loss expenses 1,372,858 1,160,392 Shareholders' equity 1,352,769 1,088,745
Supplementary Information
(in millions of U.S. dollars)
Three Months Ended Nine Months Ended
June 30 June 30
1995 1994 1995 1994
Net Premiums Written
Excess liability $ 63.6 $ 73.6 $188.5 $209.8
Directors & officers (D&O) 26.8 30.5 83.2 82.4
Satellite 11.8 2.1 30.7 6.3
First Line 0.3 P 13.2 P
Aviation products 1.6 P 1.6 P
Property 1.5 P 1.5 P
Other -- 0.2 0.3 (2.7)
Total $105.6 $106.4 $319.0 $295.8
Net Premiums Earned Excess liability $65.1 $68.0 $198.7 $200.5 Directors & officers (D&O) 27.1 29.1 83.1 84.6 Satellite 11.9 1.3 29.7 1.6 First Line 2.9 P 5.8 P Aviation products 0.3 P 0.3 P Property 0.1 P 0.1 P Other 0.1 0.1 0.4 -- Total $107.5 $98.5 $318.1 $286.7
June 30, Sept. 30,
1995 1994
Unpaid Losses and Loss Expenses
Case and loss expense reserves $798.0 $572.9
IBNR loss reserves 574.9 587.5
Total $1,372.9 $1,160.4
CONTACT: Investor Contact: Helen M. Wilson, Investor Relations Investor relations The process by which the corporation communicates with its investors. ACE Limited 809/295-5200 or Media Contact: Donnelle Koselka The Weber Weber, river, United States Weber (wē`bər), river, c.125 mi (200 km) long, rising in the Uinta Mts., N central Utah, and flowing north and northwest to join the Ogden River at Ogden. The combined stream flows to the Great Salt Lake. Group 617/520-7074 |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion