-
After-tax operating income of $891 million for the quarter and $2.5
billion for the year(1) are both records
-
P&C underwriting income of $586 million, up 4.9%
-
Net investment income of $566 million, up 8.5%
-
Operating cash flow of $1.1 billion
-
Book value per share up 6.5% and tangible book value per share up
7.4% for the year
ZURICH--(BUSINESS WIRE)--
ACE Limited (NYSE: ACE) today reported net income for the quarter ended
September 30, 2014, of $2.32 per share, compared with $2.66 per share
for the same quarter last year.(2) Operating income was $2.64
per share, compared with $2.49 per share for the same quarter last year.
Book value and tangible book value per share increased 0.2% and 0.4%,
respectively, from June 30, 2014. Book value and tangible book value per
share now stand at $90.38 and $74.05, respectively. Operating return on
equity for the quarter was 12.6%. The property and casualty (P&C)
combined ratio for the quarter was 86.3%.
|
Third Quarter Summary
|
|
(in millions, except per share amounts)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Per Share - Diluted)
|
|
|
|
|
2014
|
|
2013
|
|
Change
|
|
2014
|
|
2013
|
|
Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income, net of tax
|
|
$
|
891
|
|
$
|
857
|
|
3.9%
|
|
|
$
|
2.64
|
|
$
|
2.49
|
|
6.0%
|
|
Adjusted net realized gains (losses), net of tax
|
|
(106)
|
|
59
|
|
NM
|
|
|
(0.32)
|
|
0.17
|
|
NM
|
|
Net income
|
|
$
|
785
|
|
$
|
916
|
|
(14.2)%
|
|
|
$
|
2.32
|
|
$
|
2.66
|
|
(12.8)%
|
For the nine months ended September 30, 2014, net income was $6.75 per
share, compared with $8.02 per share for 2013. Operating income was
$7.32 per share, compared with $6.95 per share for 2013, an increase of
5.3%. Book value and tangible book value per share increased 6.5% and
7.4%, respectively, from December 31, 2013. The P&C combined ratio for
the nine months ended September 30, 2014, was 87.5%.
|
Nine Months Ended Summary
|
|
(in millions, except per share amounts)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Per Share - Diluted)
|
|
|
|
2014
|
|
2013
|
|
Change
|
|
2014
|
|
2013
|
|
Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income, net of tax
|
|
$
|
2,493
|
|
$
|
2,393
|
|
4.2%
|
|
|
$
|
7.32
|
|
$
|
6.95
|
|
5.3%
|
|
Adjusted net realized gains (losses), net of tax
|
|
(195)
|
|
367
|
|
NM
|
|
|
(0.57)
|
|
1.07
|
|
NM
|
|
Net income
|
|
$
|
2,298
|
|
$
|
2,760
|
|
(16.7)%
|
|
|
$
|
6.75
|
|
$
|
8.02
|
|
(15.8)%
|
Evan G. Greenberg, Chairman and Chief Executive Officer of ACE Limited,
commented: “ACE had record earnings for the quarter and nine months.
After-tax operating income for the quarter of $2.64 per share was up 6%,
driven by growth in underwriting income and investment income, both of
which were up for the quarter and year. Our ROE in the quarter was 12.6%.
“P&C underwriting income was up 5% as a result of growth in earned
premium and steady underwriting margin. The combined ratio of 86.3%
benefitted from strong current accident year results, positive prior
years’ reserve development and relatively light catastrophe losses. Net
investment income was up 8.5%, due primarily to growth in our invested
assets and partnership distributions.
“Net P&C premiums excluding crop insurance grew 4% in the quarter and 7%
year to date. While growth naturally slowed a bit in the quarter given a
more competitive market globally, we see many opportunities for growth
due to our broad global diversification. We expect stronger growth in
the fourth quarter in constant dollars.
“We continue to invest for the future. As we announced earlier, all of
our regulatory approvals are now in hand for our acquisition of Itaú’s
large corporate P&C insurance business in Brazil. We expect the
transaction will now close October 31.”
Operating highlights for the quarter ended September 30, 2014, were as
follows:
|
(in millions of U.S. dollars except for percentages)
|
|
3Q
|
|
3Q
|
|
|
|
|
2014
|
|
2013
|
|
Change
|
|
|
|
|
|
|
|
|
|
|
|
P&C
|
|
|
|
|
|
|
|
|
Net premiums written
|
|
$
|
4,232
|
|
|
$
|
4,141
|
|
|
2.2
|
%
|
|
Net premiums written constant-dollar
|
|
|
|
$
|
4,160
|
|
|
1.7
|
%
|
|
Underwriting income
|
|
$
|
586
|
|
|
$
|
558
|
|
|
4.9
|
%
|
|
Combined ratio
|
|
86.3%
|
|
|
86.5%
|
|
|
|
|
|
Current accident year underwriting income excluding catastrophe
losses
|
|
$ 440
|
|
|
$ 426
|
|
|
3.2
|
%
|
|
Current accident year combined ratio excluding catastrophe losses
|
|
89.8%
|
|
|
89.8%
|
|
|
|
|
|
Global P&C (excludes Agriculture)
|
|
|
|
|
|
|
|
|
Net premiums written
|
|
$
|
3,468
|
|
|
$
|
3,336
|
|
|
4.0
|
%
|
|
Net premiums written constant-dollar
|
|
|
|
$
|
3,356
|
|
|
3.4
|
%
|
|
Underwriting income
|
|
$
|
505
|
|
|
$
|
493
|
|
|
2.5
|
%
|
|
Combined ratio
|
|
85.6%
|
|
|
85.0%
|
|
|
|
|
|
Current accident year underwriting income excluding catastrophe
losses
|
|
$ 360
|
|
|
$ 369
|
|
|
(2.4)
|
%
|
|
Current accident year combined ratio excluding catastrophe losses
|
|
89.8%
|
|
|
88.9%
|
|
|
|
|
|
Agriculture
|
|
|
|
|
|
|
|
|
Net premiums written
|
|
$
|
764
|
|
|
$
|
805
|
|
|
(5.2)
|
%
|
|
Underwriting income
|
|
$
|
81
|
|
|
$
|
65
|
|
|
23.4
|
%
|
|
Combined ratio
|
|
89.5%
|
|
|
92.3%
|
|
|
|
|
|
Current accident year underwriting income excluding catastrophe
losses
|
|
$ 80
|
|
|
$ 57
|
|
|
39.7
|
%
|
|
Current accident year combined ratio excluding catastrophe losses
|
|
89.6%
|
|
|
93.3%
|
|
|
|
|
-
P&C net premiums earned increased 2.9%, and Global P&C net premiums
earned increased 6.2%.
-
The P&C expense ratio for the quarter was 27.8% compared with 25.8%
last year. The Global P&C expense ratio, which excludes Agriculture,
was 32.7% compared with 31.3% last year. The prior year Global P&C
expense ratio includes a 1.0 point favorable impact for purchase
accounting adjustments related to the Mexican acquisitions. The
Agriculture expense ratio for the quarter was 5.8% compared with 4.3%
last year. The current quarter ratio includes the unfavorable impact
of lower crop insurance production as a result of lower commodity
prices and lower ceded commission benefits due to the non-renewal of a
third-party proportional reinsurance agreement.
-
Total pre-tax and after-tax catastrophe losses including reinstatement
premiums were $86 million (2.1 percentage points of the combined
ratio) and $76 million, respectively, compared with $78 million (1.8
percentage points of the combined ratio) and $70 million,
respectively, last year.
-
Favorable prior period development pre-tax and after-tax for the
quarter were $232 million (5.6 percentage points of the combined
ratio) and $172 million, respectively, compared with $210 million (5.1
percentage points of the combined ratio) and $162 million,
respectively, last year.
-
Operating cash flow was $1.1 billion for the quarter.
-
Net loss reserves increased $93 million in the quarter and $286
million for the year, and the net paid-to-incurred ratio was 88% for
the quarter and 94% for the year.
-
Net investment income for the quarter increased 8.5% to $566 million,
primarily due to an increase in the invested asset base, an increase
in private equity distributions and an increase in call activity in
the company’s corporate bond portfolio.
-
Net realized and unrealized losses pre-tax totaled $447 million for
the quarter. Net realized losses of $110 million included a loss of
$95 million from derivative accounting related to variable annuity
reinsurance. Net unrealized losses of $337 million were primarily
related to an increase in market yields on the company’s corporate
bond portfolio.
-
Operating return on equity was 12.6% for the quarter and 11.9% year to
date. Return on equity computed using net income was 10.4% for both
the quarter and year to date.
-
Share repurchases totaled $450 million, or approximately 4.3 million
shares, during the quarter. Since the inception of the November 2013
share repurchase authorization, the company has repurchased
approximately 11.2 million shares for $1.1 billion through October 20,
2014.
-
Book value per share increased 0.2% to $90.38 from $90.19 at June 30,
2014, and increased 6.5% from $84.83 at December 31, 2013. Realized
and unrealized losses and unfavorable foreign currency movement
negatively impacted book value per share in the quarter.
-
Tangible book value per share increased 0.4% to $74.05 from $73.77 at
June 30, 2014, and increased 7.4% from $68.93 at December 31, 2013.
Details of financial results by business segment are available in the
ACE Limited Financial Supplement. Key segment items for the quarter
ended September 30, 2014, include:
-
Insurance – North American P&C: Net premiums written increased 2.7%.
The combined ratio was 91.4% for the quarter compared with 88.3%. The
combined ratio was 87.8% for the year compared with 87.2%. The current
accident year combined ratio excluding catastrophe losses for the
quarter was 88.5% compared with 88.3%. The current accident year
combined ratio excluding catastrophe losses for the year was 87.6%
compared with 87.8%. Unfavorable prior period development in the
quarter of $11 million included $63 million of adverse development for
legacy environmental liability exposures.
-
Insurance – North American Agriculture: Net premiums written decreased
5.2%. The combined ratio was 89.5% for the quarter compared with
92.3%. The combined ratio was 93.6% for the year compared with 91.1%.
The current accident year combined ratio excluding catastrophe losses
for the quarter was 89.6% compared with 93.3%. The current accident
year combined ratio excluding catastrophe losses for the year was
89.4% compared with 91.8%.
-
Insurance – Overseas General: Net premiums written increased 9.4%. The
combined ratio was 80.1% for the quarter compared with 82.2%. The
combined ratio was 85.7% for the year compared with 86.9%. The current
accident year combined ratio excluding catastrophe losses for the
quarter was 90.5% compared with 89.4%. The current accident year
combined ratio excluding catastrophe losses for the year was 90.1%
compared with 90.2%. Favorable prior period development in the quarter
of $219 million included $52 million of favorable development for an
older liability case.
-
Global Reinsurance: Net premiums written decreased 21.2% for the
quarter primarily due to the non-renewal of a large workers'
compensation treaty. The combined ratio was 70.2% for the quarter
compared with 65.8%. The combined ratio was 71.1% for the year
compared with 65.1%. The current accident year combined ratio
excluding catastrophe losses for the quarter was 75.7% compared with
71.0%. The current accident year combined ratio excluding catastrophe
losses for the year was 75.4% compared with 70.0%.
-
Life: Operating income was $72 million compared with $75 million. Net
premiums written and deposits collected, excluding life reinsurance,
increased 14.5% on a constant-dollar basis.
Please refer to the ACE Limited Financial
Supplement, dated September 30, 2014, which is posted on the
company's website in the Investor Information section, and access
Financial Reports for more detailed information on individual segment
performance, together with additional disclosure on reinsurance
recoverable, loss reserves, investment portfolio and capital structure.
ACE will hold its third quarter earnings conference call on Wednesday,
October 22, 2014, beginning at 8:30 a.m. Eastern. The earnings
conference call will be available via live webcast at www.acegroup.com
or by dialing 888-569-5033 (within the United States) or 719-325-2490
(international), passcode 8276801. Please refer to the ACE Group website
in the Investor Information section under Calendar of Events for
details. A replay of the call will be available until Wednesday,
November 5, 2014, and the archived webcast will be available for
approximately one month. To listen to the replay, please dial
888-203-1112 (in the United States) or 719-457-0820 (international),
passcode 8276801.
ACE Group is one of the world's largest multiline property and casualty
insurers. With operations in 54 countries, ACE provides commercial and
personal property and casualty insurance, personal accident and
supplemental health insurance, reinsurance and life insurance to a
diverse group of clients. ACE Limited, the parent company of ACE Group,
is listed on the New York Stock Exchange (NYSE: ACE) and is a component
of the S&P 500 index. Additional information can be found at: www.acegroup.com.
(1) References to the year refer to the nine months
ended September 30, 2014.
(2) All comparisons are with the same period last year
unless specifically stated.
Regulation G - Non-GAAP Financial Measures
In presenting our results, we included and discussed certain non-GAAP
measures. These non-GAAP measures, which may be defined differently by
other companies, are important for an understanding of our overall
results of operations and financial condition. However, they should not
be viewed as a substitute for measures determined in accordance with
generally accepted accounting principles (GAAP).
Adjusted net realized gains (losses), net of tax,
includes net realized gains (losses) and net realized gains (losses)
recorded in other income (expense) related to unconsolidated
subsidiaries, and excludes realized gains and losses on crop
derivatives. These derivatives were purchased to provide economic
benefit, in a manner similar to reinsurance protection, in the event
that a significant decline in commodity pricing will impact underwriting
results. We view gains and losses on these derivatives as part of the
results of our underwriting operations, and therefore realized gains and
losses from these derivatives are reclassified to adjusted losses and
loss expenses. The P&C combined ratio includes adjusted losses and loss
expenses in the ratio numerator.
Net premiums written on a constant-dollar basis
is a financial measure which excludes the impact of foreign exchange. We
believe it is useful to evaluate the trends in net premiums written,
exclusive of the effect of fluctuations in exchange rates between the
U.S. dollar and the currencies in which our international business is
transacted, as these exchange rates could fluctuate significantly
between periods and distort the analysis of trends. The impact is
determined by assuming constant foreign exchange rates between periods
by translating prior period results using the same local currency
exchange rates as the comparable current period.
Underwriting income, P&C underwriting income, and
Global P&C underwriting income are calculated by subtracting
losses and loss expenses, policy benefits, policy acquisition costs and
administrative expenses from net premiums earned. P&C underwriting
income also includes gains (losses) on crop derivatives. We use
underwriting income and operating ratios to monitor the results of our
operations without the impact of certain factors, including net
investment income, other income (expense), interest and income tax
expense and adjusted net realized gains (losses). Current accident year
underwriting income excluding catastrophe losses is underwriting income
adjusted to exclude catastrophe losses and prior period development
(PPD). We believe it is useful to exclude catastrophe losses, as they
are not predictable as to timing and amount, and PPD as these unexpected
loss developments on historical reserves are not indicative of our
current underwriting performance. We believe the use of these measures
enhances the understanding of our results of operations by highlighting
the underlying profitability of our insurance business.
Operating income or income excluding adjusted net
realized gains (losses), net of tax is a common performance
measurement for insurance companies. We believe this presentation
enhances the understanding of our results of operations by highlighting
the underlying profitability of our insurance business. We exclude
adjusted net realized gains (losses) because the amount of these gains
(losses) is heavily influenced by the availability of market
opportunities.
P&C combined ratio excluding catastrophe losses
and PPD or current accident year P&C combined ratio excluding
catastrophe losses exclude impacts of catastrophe losses and PPD.
We believe this measure provides a better evaluation of our core
underwriting performance and enhances the understanding of the trends in
our property and casualty business that may be obscured by these items.
Global P&C performance metrics comprise
consolidated operating results (including corporate) and exclude the
operating results of the company’s Life and Insurance – North American
Agriculture segments. We believe that these measures are useful and
meaningful to investors as they are used by management to assess the
company’s global P&C operations which are the most economically similar.
We exclude the Insurance – North American Agriculture and Life segments
because the results of these businesses do not always correlate with the
results of our global P&C operations.
Life net premiums written and deposits collected,
excluding life reinsurance, is adjusted to include deposits
collected on universal life and investment contracts (life deposits) and
exclude results from our life reinsurance business. Life deposits are
not reflected as revenues in our consolidated statements of operations
in accordance with GAAP. We include life deposits in presenting growth
in our Life business because new life deposits are an important
component of production and key to our efforts to grow our business. We
exclude results associated with life reinsurance as there is no new life
reinsurance business currently being written.
Operating return on equity (ROE) or ROE calculated
using operating income is an annualized financial measure. The
ROE numerator includes income adjusted to exclude adjusted net realized
gains (losses), net of tax. The ROE denominator includes the average
shareholders' equity for the period adjusted to exclude unrealized gains
(losses) on investments, net of tax. To annualize a quarterly rate,
multiply by four. Annualized ROE calculated using operating income is a
useful measure as it enhances the understanding of the return on
shareholders' equity by highlighting the underlying profitability
relative to shareholders' equity excluding the effect of unrealized
gains and losses on our investments.
Tangible book value per common share is
shareholders' equity less goodwill and other intangible assets divided
by the shares outstanding. We believe that goodwill and other intangible
assets are not indicative of our underlying insurance results or trends
and make book value comparisons to less acquisitive peer companies less
meaningful.
Other income (expense) – operating excludes
from consolidated Other income (expense) the portion of net realized
gains and losses related to unconsolidated entities and gains and losses
from fair value changes in separate account assets that do not qualify
for separate account reporting under GAAP. Net realized gains (losses)
related to unconsolidated entities is excluded from operating income in
order to enhance the understanding of our core results of operations as
they are heavily influenced by, and fluctuate in part according to
market conditions.
See reconciliation of Non-GAAP Financial Measures on pages 21-23 in the
Financial Supplement. These measures should not be viewed as a
substitute for net income, return on equity, or effective tax rate
determined in accordance with GAAP.
NM - not meaningful comparison
Cautionary Statement Regarding
Forward-Looking Statements:
Forward-looking statements made in this press release, such as those
related to company performance including 2014 performance and growth
opportunities, and our pending acquisition of the large corporate P&C
business of Itaú Unibanco S.A., reflect our 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 that
could cause actual results to differ materially, including without
limitation, the following: competition, pricing and policy term trends,
the levels of new and renewal business achieved, the frequency of
unpredictable catastrophic events, actual loss experience, uncertainties
in the reserving or settlement process, integration activities and
performance of acquired companies, new theories of liability, judicial,
legislative, regulatory and other governmental developments, litigation
tactics and developments, investigation developments and actual
settlement terms, the amount and timing of reinsurance recoverable,
credit developments among reinsurers, rating agency action, possible
terrorism or the outbreak and effects of war, economic,
political, regulatory, insurance and reinsurance business conditions,
potential strategic opportunities including acquisitions and our ability
to achieve and integrate them, as well as management's response to these
factors, and other factors identified in our filings with the Securities
and Exchange Commission. Given uncertainties, it is possible the closing
of the above-referenced acquisition could also be delayed or not occur.
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. We undertake 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 Balance Sheets
|
|
(in millions of U.S. dollars, except per share data)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30
|
|
December 31
|
|
|
|
2014
|
|
|
2013
|
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
Investments
|
$
|
63,254
|
|
|
$
|
60,928
|
|
Cash
|
806
|
|
|
579
|
|
Insurance and reinsurance balances receivable
|
5,189
|
|
|
5,026
|
|
Reinsurance recoverable on losses and loss expenses
|
10,945
|
|
|
11,227
|
|
Other assets
|
17,363
|
|
|
16,750
|
|
|
Total assets
|
$
|
97,557
|
|
|
$
|
94,510
|
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
Unpaid losses and loss expenses
|
$
|
37,447
|
|
|
$
|
37,443
|
|
Unearned premiums
|
8,020
|
|
|
7,539
|
|
Other liabilities
|
22,073
|
|
|
20,703
|
|
|
Total liabilities
|
67,540
|
|
|
65,685
|
|
|
|
|
|
|
|
|
Shareholders' equity
|
|
|
|
|
|
|
Total shareholders' equity
|
30,017
|
|
|
28,825
|
|
|
Total liabilities and shareholders' equity
|
$
|
97,557
|
|
|
$
|
94,510
|
|
|
|
|
|
|
|
|
Book value per common share
|
$ 90.38
|
|
$
|
84.83
|
|
ACE Limited
|
|
Summary Consolidated Financial Data
|
|
(in millions of U.S. dollars, except share, per share data, and
ratios)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
|
|
|
|
September 30
|
|
September 30
|
|
|
|
|
2014
|
|
|
2013
|
|
|
2014
|
|
|
2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross premiums written
|
|
$
|
6,264
|
|
|
$
|
6,373
|
|
|
$
|
17,644
|
|
|
$
|
17,366
|
|
Net premiums written
|
|
4,729
|
|
|
4,620
|
|
|
13,473
|
|
|
12,809
|
|
Net premiums earned
|
|
4,754
|
|
|
4,610
|
|
|
13,056
|
|
|
12,250
|
|
Losses and loss expenses
|
|
2,684
|
|
|
2,655
|
|
|
7,233
|
|
|
6,831
|
|
Policy benefits
|
|
125
|
|
|
138
|
|
|
383
|
|
|
379
|
|
Policy acquisition costs
|
|
825
|
|
|
678
|
|
|
2,311
|
|
|
1,957
|
|
Administrative expenses
|
|
554
|
|
|
563
|
|
|
1,655
|
|
|
1,641
|
|
Net investment income
|
|
566
|
|
|
522
|
|
|
1,675
|
|
|
1,587
|
|
Net realized gains (losses)
|
|
(120)
|
|
|
40
|
|
|
(297)
|
|
|
350
|
|
Interest expense
|
|
70
|
|
|
72
|
|
|
213
|
|
|
205
|
|
Other income (expense):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gains (losses) from separate account assets
|
|
(6)
|
|
|
14
|
|
|
5
|
|
|
7
|
|
|
Other
|
|
25
|
|
|
(9)
|
|
|
56
|
|
|
(29)
|
|
Income tax expense
|
|
176
|
|
|
155
|
|
|
402
|
|
|
392
|
|
Net income
|
|
$
|
785
|
|
|
$
|
916
|
|
|
$
|
2,298
|
|
|
$
|
2,760
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
$
|
2.64
|
|
|
$
|
2.49
|
|
|
$
|
7.32
|
|
|
$
|
6.95
|
|
Net income
|
|
$
|
2.32
|
|
|
$
|
2.66
|
|
|
$
|
6.75
|
|
|
$
|
8.02
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average diluted shares outstanding
|
|
337.7
|
|
|
343.8
|
|
|
340.4
|
|
|
344.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
P&C combined ratio
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss and loss expense ratio
|
|
58.5%
|
|
|
60.7%
|
|
|
58.1%
|
|
|
59.0%
|
|
Policy acquisition cost ratio
|
|
16.5%
|
|
|
14.3%
|
|
|
16.9%
|
|
|
15.7%
|
|
Administrative expense ratio
|
|
11.3%
|
|
|
11.5%
|
|
|
12.5%
|
|
|
12.8%
|
|
P&C combined ratio
|
|
86.3%
|
|
|
86.5%
|
|
|
87.5%
|
|
|
87.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
P&C underwriting income
|
|
$
|
586
|
|
|
$
|
558
|
|
|
$
|
1,454
|
|
|
$
|
1,356
|
|
Other income (expense) - operating
|
|
$
|
(30)
|
|
|
$
|
(31)
|
|
|
$
|
(86)
|
|
|
$
|
(96)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ACE Limited
|
|
Consolidated Supplemental Segment Information
|
|
(in millions of U.S. dollars)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
|
|
September 30
|
|
September 30
|
|
|
2014
|
|
|
2013
|
|
|
2014
|
|
|
2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross Premiums Written
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Insurance – North American P&C
|
$
|
2,126
|
|
|
$
|
2,135
|
|
|
$
|
6,497
|
|
|
$
|
6,281
|
|
Insurance – North American Agriculture
|
1,241
|
|
|
1,446
|
|
|
2,076
|
|
|
2,444
|
|
Insurance – Overseas General
|
2,156
|
|
|
2,018
|
|
|
6,641
|
|
|
6,188
|
|
Global Reinsurance
|
213
|
|
|
264
|
|
|
854
|
|
|
903
|
|
Life
|
528
|
|
|
510
|
|
|
1,576
|
|
|
1,550
|
|
Total
|
$
|
6,264
|
|
|
$
|
6,373
|
|
|
$
|
17,644
|
|
|
$
|
17,366
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Premiums Written
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Insurance – North American P&C
|
$
|
1,541
|
|
|
$
|
1,500
|
|
|
$
|
4,594
|
|
|
$
|
4,313
|
|
Insurance – North American Agriculture
|
764
|
|
|
805
|
|
|
1,346
|
|
|
1,371
|
|
Insurance – Overseas General
|
1,719
|
|
|
1,571
|
|
|
5,250
|
|
|
4,821
|
|
Global Reinsurance
|
208
|
|
|
265
|
|
|
794
|
|
|
836
|
|
Life
|
497
|
|
|
479
|
|
|
1,489
|
|
|
1,468
|
|
Total
|
$
|
4,729
|
|
|
$
|
4,620
|
|
|
$
|
13,473
|
|
|
$
|
12,809
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Premiums Earned
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Insurance – North American P&C
|
$
|
1,518
|
|
|
$
|
1,444
|
|
|
$
|
4,547
|
|
|
$
|
4,210
|
|
Insurance – North American Agriculture
|
766
|
|
|
849
|
|
|
1,199
|
|
|
1,252
|
|
Insurance – Overseas General
|
1,726
|
|
|
1,611
|
|
|
5,047
|
|
|
4,633
|
|
Global Reinsurance
|
255
|
|
|
239
|
|
|
800
|
|
|
731
|
|
Life
|
489
|
|
|
467
|
|
|
1,463
|
|
|
1,424
|
|
Total
|
$
|
4,754
|
|
|
$
|
4,610
|
|
|
$
|
13,056
|
|
|
$
|
12,250
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income (loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Insurance – North American P&C
|
$
|
337
|
|
|
$
|
342
|
|
|
$
|
1,126
|
|
|
$
|
1,044
|
|
Insurance – North American Agriculture
|
57
|
|
|
50
|
|
|
51
|
|
|
83
|
|
Insurance – Overseas General
|
348
|
|
|
320
|
|
|
869
|
|
|
815
|
|
Global Reinsurance
|
145
|
|
|
131
|
|
|
435
|
|
|
431
|
|
Life
|
72
|
|
|
75
|
|
|
221
|
|
|
221
|
|
Corporate
|
(68)
|
|
|
(61)
|
|
|
(209)
|
|
|
(201)
|
|
Total
|
$
|
891
|
|
|
$
|
857
|
|
|
$
|
2,493
|
|
|
$
|
2,393
|
Source: ACE Limited