-
Record after-tax operating income of $897 million for the quarter
-
Record P&C underwriting income of $597 million
-
Global P&C net premiums written up 7.8% in constant dollars
-
Net investment income of $549 million
-
Operating cash flow of $808 million
-
Unfavorable foreign currency movement negatively impacted operating
income by $36 million, or $0.11 per share, reduced Global P&C net
premiums written growth by $240 million, or 7.5%, and reduced book
value by $548 million and tangible book value by $345 million in the
quarter
-
Chubb acquisition on track to close first quarter 2016; integration
planning proceeding well
ZURICH--(BUSINESS WIRE)--
ACE Limited (NYSE: ACE) today reported net income for the quarter ended
September 30, 2015, of $1.62 per share, compared with $2.32 per share
for the same quarter last year.(1) Operating income was $2.74
per share, compared with $2.64 per share for the same quarter last year.
The property and casualty (P&C) combined ratio for the quarter was
85.9%. Book value and tangible book value per share declined 1.5% and
0.8%, respectively, from June 30, 2015, reflecting unfavorable foreign
currency movement of $548 million, after-tax, and realized and
unrealized losses in the company's investment and variable annuity
reinsurance portfolios of $622 million, after-tax, as a result of global
equity and interest rate movements. Book value and tangible book value
per share now stand at $89.88 and $72.25, respectively.
|
Third Quarter Summary
|
|
(in millions, except per share amounts)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Per Share - Diluted)
|
|
|
|
2015
|
|
2014
|
|
Change
|
|
2015
|
|
2014
|
|
Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income, net of tax
|
|
$
|
897
|
|
$
|
891
|
|
0.8%
|
|
|
$
|
2.74
|
|
$
|
2.64
|
|
3.8%
|
|
Chubb integration expenses, net of tax
|
|
(7)
|
|
—
|
|
NM
|
|
|
(0.02)
|
|
—
|
|
NM
|
|
Adjusted net realized gains (losses), net of tax
|
|
(362)
|
|
(106)
|
|
NM
|
|
|
(1.10)
|
|
(0.32)
|
|
NM
|
|
Net income
|
|
$
|
528
|
|
$
|
785
|
|
(32.7)%
|
|
|
$
|
1.62
|
|
$
|
2.32
|
|
(30.2)%
|
For the nine months ended September 30, 2015, net income was $6.53 per
share, compared with $6.75 per share for 2014. Operating income was
$7.38 per share, compared with $7.32 per share for 2014. The P&C
combined ratio for the nine months ended September 30, 2015, was 87.2%
versus 87.5% prior year. Book value and tangible book value per share
declined 0.2% and 0.5%, respectively, from December 31, 2014. Book value
and tangible book value per share were negatively impacted by
unfavorable foreign currency movement of $885 million, after-tax, net
realized and unrealized losses in the investment portfolio of $542
million, after-tax, and realized losses of $268 million, after-tax, in
the company’s variable annuity reinsurance portfolio during the year.
Tangible book value per share was also negatively impacted by the
addition of $474 million of goodwill and other intangibles related to
the Fireman’s Fund acquisition that closed during the year.
|
Nine Months Ended Summary
|
|
(in millions, except per share amounts)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Per Share - Diluted)
|
|
|
|
2015
|
|
2014
|
|
Change
|
|
2015
|
|
2014
|
|
Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income, net of tax
|
|
$
|
2,430
|
|
$
|
2,493
|
|
(2.5)%
|
|
|
$
|
7.38
|
|
$
|
7.32
|
|
0.8%
|
|
Chubb integration expenses, net of tax
|
|
(7)
|
|
—
|
|
NM
|
|
|
(0.02)
|
|
—
|
|
NM
|
|
Adjusted net realized gains (losses), net of tax
|
|
(272)
|
|
(195)
|
|
39.5%
|
|
|
(0.83)
|
|
(0.57)
|
|
45.6%
|
|
Net income
|
|
$
|
2,151
|
|
$
|
2,298
|
|
(6.4)%
|
|
|
$
|
6.53
|
|
$
|
6.75
|
|
(3.3)%
|
Evan G. Greenberg, Chairman and Chief Executive Officer of ACE Limited,
commented: “ACE had a great quarter. Volatility in the credit, equity
and foreign exchange markets impacted our results but did not prevent us
from producing record earnings, record underwriting results and good
revenue growth in constant dollars. After-tax operating income was $897
million, or $2.74 per share, leading to an operating ROE of about 13%.
“Our earnings growth was driven by a world-class underwriting
performance, highlighted by record underwriting income and a P&C
combined ratio of 85.9%. We benefited from very strong current
underwriting year results, positive development in our reserves and
relatively low catastrophe losses. Year to date, even with foreign
exchange headwinds, we’ve produced over $2.4 billion in operating
income, which is essentially flat with prior year.
“Book value declined 1.5% due to the impact of foreign exchange and
financial market volatility in our investment and variable annuity
reinsurance portfolios. Foreign exchange also continued to impact our
premium revenue. Global P&C net premiums, which exclude Agriculture,
were flat in the quarter but grew nearly 8% in constant currency, with
double-digit contributions from our U.S. and Latin American operations.
For the year, Global P&C premiums have grown about 2.5%, or nearly 9% in
constant dollars.
“We are on track to close our acquisition of Chubb in the first quarter
of 2016 and expect a very positive response from both companies’
shareholders at Thursday’s shareholder meetings. We are making good
progress with integration planning and will be ready to hit the ground
running when we close.”
Operating highlights for the quarter ended September 30, 2015, were as
follows:
|
(in millions of U.S. dollars except for percentages)
|
|
3Q
2015
|
|
3Q
2014
|
Change
|
|
|
|
|
P&C
|
|
|
|
|
|
|
|
|
Net premiums written
|
|
$
|
4,217
|
|
$
|
4,232
|
(0.4)%
|
|
Net premiums written constant-dollar
|
|
|
|
|
$
|
3,992
|
5.6%
|
|
Underwriting income
|
|
$
|
597
|
|
$
|
586
|
1.9%
|
|
Underwriting income constant-dollar
|
|
|
|
|
$
|
551
|
8.4%
|
|
Combined ratio
|
|
|
85.9%
|
|
|
86.3%
|
|
|
Current accident year underwriting income excluding catastrophe
losses
|
|
$
|
459
|
|
$
|
440
|
4.5%
|
|
Current accident year underwriting income excluding catastrophe
losses constant-dollar
|
|
|
|
|
$
|
404
|
13.7%
|
|
Current accident year combined ratio excluding catastrophe losses
|
|
|
89.2%
|
|
|
89.8%
|
|
|
Global P&C (excludes Agriculture)
|
|
|
|
|
|
|
|
|
Net premiums written
|
|
$
|
3,480
|
|
$
|
3,468
|
0.3%
|
|
Net premiums written constant-dollar
|
|
|
|
|
$
|
3,229
|
7.8%
|
|
Underwriting income
|
|
$
|
524
|
|
$
|
505
|
3.8%
|
|
Underwriting income constant-dollar
|
|
|
|
|
$
|
470
|
11.5%
|
|
Combined ratio
|
|
|
85.0%
|
|
|
85.6%
|
|
|
Current accident year underwriting income excluding catastrophe
losses
|
|
$
|
391
|
|
$
|
360
|
8.8%
|
|
Current accident year underwriting income excluding catastrophe
losses constant-dollar
|
|
|
|
|
$
|
324
|
20.7%
|
|
Current accident year combined ratio excluding catastrophe losses
|
|
|
88.8%
|
|
|
89.8%
|
|
|
Agriculture
|
|
|
|
|
|
|
|
|
Net premiums written
|
|
$
|
737
|
|
$
|
764
|
(3.5)%
|
|
Underwriting income
|
|
$
|
73
|
|
$
|
81
|
(9.6)%
|
|
Combined ratio
|
|
|
90.2%
|
|
|
89.5%
|
|
|
Current accident year underwriting income excluding catastrophe
losses
|
|
$
|
68
|
|
$
|
80
|
(14.9)%
|
|
Current accident year combined ratio excluding catastrophe losses
|
|
|
90.8%
|
|
|
89.6%
|
|
-
P&C net premiums earned decreased 0.6%, or increased 5.4% in constant
dollars. Global P&C net premiums earned were flat, or up 7.6% in
constant dollars.
-
The P&C expense ratio for the quarter was 27.1%, compared with 27.8%
last year. The Global P&C expense ratio, which excludes Agriculture,
was 31.6% compared with 32.7% last year.
-
Total pre-tax and after-tax catastrophe losses, including
reinstatement premiums, were $72 million (1.7 percentage points of the
combined ratio) and $59 million, respectively, compared with $86
million (2.1 percentage points of the combined ratio) and $76 million,
respectively, last year.
-
Favorable prior period development pre-tax and after-tax for the
quarter were $210 million (5.0 percentage points of the combined
ratio) and $180 million, respectively, compared with $232 million (5.6
percentage points of the combined ratio) and $172 million,
respectively, last year.
-
Operating cash flow was $808 million for the quarter.
-
Net loss reserves decreased $122 million in the quarter. Excluding
foreign currency, net loss reserves increased $212 million in the
quarter.
-
Net investment income was $549 million compared with $566 million last
year, primarily reflecting unfavorable foreign currency movement of
$11 million and a decrease in call activity in the company's corporate
bond portfolio.
-
Net realized and unrealized losses pre-tax totaled $1.2 billion for
the quarter. Net realized losses of $368 million included a loss of
$313 million from derivative accounting related to variable annuity
reinsurance resulting primarily from global equity and interest rate
movements. Net unrealized pre-tax losses of $844 million included
unrealized foreign exchange losses of $575 million and unrealized
losses of $283 million in the investment portfolio primarily due to
widening of credit spreads.
-
Operating return on equity was 12.9% for the quarter and 11.7% year to
date. Return on equity computed using net income was 7.2% for the
quarter and 9.8% year to date.
Details of financial results by business segment are available in the
ACE Limited Financial Supplement. Key segment items for the quarter
ended September 30, 2015, include:
-
Insurance – North American P&C: Net premiums written increased 11.0%,
or 11.7% on a constant-dollar basis. Net premiums written excluding
Fireman’s Fund increased 3.9%, or 4.6% on a constant-dollar basis. The
combined ratio was 90.5% compared with 91.4%. The current accident
year combined ratio excluding catastrophe losses for the quarter was
86.3% compared with 88.5%. Unfavorable prior year reserve development
in the quarter of $50 million included a pre-tax environmental
liability run-off charge in the company’s Brandywine operation of $76
million. The transfer of the Fireman’s Fund in-force business in April
2015 contributed $33 million of underwriting income that is
non-recurring in 2016. This underwriting benefit was offset for
operating income purposes by the amortization of intangible assets of
$29 million.
-
Insurance – North American Agriculture: Net premiums written decreased
3.5%. The combined ratio was 90.2% compared with 89.5%. The current
accident year combined ratio excluding catastrophe losses for the
quarter was 90.8% compared with 89.6%, principally due to relatively
flat unallocated loss adjustment expenses with lower earned premiums.
-
Insurance – Overseas General:* Net premiums written decreased 7.9%, or
increased 6.1% on a constant-dollar basis. The combined ratio was
82.0% compared with 80.1%. The current accident year combined ratio
excluding catastrophe losses was 90.5% for both periods.
-
Global Reinsurance:* Net premiums written decreased 11.5%, or 9.5% on
a constant-dollar basis. The combined ratio was 41.2% compared with
70.2%. The current accident year combined ratio excluding catastrophe
losses was 75.3% compared with 75.7%.
-
Life segment: Operating income was $57 million compared with $72
million. The decrease was primarily due to unfavorable reserve
development in the current quarter of $5 million, after-tax, in the
accident and health business. Life reinsurance decreased reflecting
the run-off of the company’s variable annuity reinsurance business.
Operating income was also impacted by unfavorable foreign currency
movement. International life insurance net premiums written and
deposits collected increased 4.8% on a constant-dollar basis for the
year.
* Favorable prior period development of $177 million in the Insurance
– Overseas General segment and $78 million in the Global Reinsurance
segment included $26 million and $54 million, respectively, of favorable
development related to an individual legacy liability case reserve
take-down.
Please refer to the ACE Limited Financial
Supplement, dated September 30, 2015, 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
recoverables, loss reserves, investment portfolio and capital structure.
ACE will hold its third quarter earnings conference call on Wednesday,
October 21, 2015, beginning at 8:30 a.m. Eastern. The earnings
conference call will be available via live webcast at www.acegroup.com
or by dialing 888-471-3842 (within the United States) or 719-325-2499
(international), passcode 721516. 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 4, 2015, 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 721516.
About ACE Group
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) 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).
Throughout this document there are various measures presented on a
constant-dollar basis (i.e., excludes the impact of foreign exchange).
We believe it is useful to evaluate the trends in our results, 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.
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 impacts 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.
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. We also exclude Chubb integration expenses related to the
planned acquisition due to the size and complexity of this acquisition.
These integration expenses are distortive to our results and are not
indicative of our underlying profitability. We believe that excluding
these integration expenses facilitates the comparison of our financial
results to our historical operating results. These expenses include
legal and professional fees and all costs directly related to the
integration activities of the planned Chubb acquisition. Operating
income or income excluding adjusted net realized gains (losses) should
not be viewed as a substitute for net income determined in accordance
with GAAP. In addition, we disclose operating income excluding the
impact of foreign exchange in order to adjust for the distortive effects
of fluctuations in exchange rates.
P&C combined ratio excluding catastrophe losses
and PPD and 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.
International life net premiums written and
deposits collected, is adjusted to include deposits collected on
universal life and investment contracts (life deposits). Life deposits
are not reflected as revenues in our consolidated statements of
operations in accordance with GAAP. However, we include life deposits in
presenting growth in our life insurance business because new life
deposits are an important component of production and key to our efforts
to grow our business.
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 and Chubb integration expenses, 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. In addition, we disclose per share measures for book value
and tangible book value that exclude the impact of foreign currency
fluctuations during 2015 in order to adjust for the distortive effects
of fluctuations in exchange rates.
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 22-24 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 2015 performance and growth
opportunities, and statements about the benefits of the proposed
transaction involving ACE and Chubb, ACE’s and Chubb’s plans,
objectives, expectations and intentions and other statements that are
not historical facts 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
(SEC).
In addition, with regard to the proposed transaction involving ACE
and Chubb, important factors that could cause actual results to differ
materially from those indicated by the forward-looking statements
include, without limitation, the following: the inability to complete
the transaction in a timely manner; the inability to complete the
transaction due to the failure of Chubb’s shareholders to approve the
transaction agreement or the failure of ACE shareholders to approve,
among other matters, the issuance of ACE common shares in connection
with the transaction; the failure to satisfy other conditions to
completion of the transaction, including receipt of required regulatory
approvals; the failure of the proposed transaction to close for any
other reason; the possibility that any of the anticipated benefits of
the proposed transaction will not be realized; the risk that integration
of Chubb’s operations with those of ACE will be materially delayed or
will be more costly or difficult than expected; the effect of the
announcement of the transaction on ACE’s, Chubb’s or the combined
company’s respective business relationships, operating results and
business generally; and diversion of management’s attention from ongoing
business operations and opportunities. In addition, you should carefully
consider the risks and uncertainties and other factors that may affect
future results of the combined company described in the section entitled
“Risk Factors” in the joint proxy statement/prospectus delivered to
ACE’s and Chubb’s respective shareholders, and in ACE’s and Chubb’s
respective filings with the SEC.
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.
Additional Information and Where to Find It
This press release does not constitute an offer to sell or the
solicitation of an offer to buy any securities or a solicitation of any
vote or approval. This press release may be deemed to be
solicitation material in respect of the proposed transaction between ACE
and Chubb. In connection with the proposed transaction, ACE has
filed a registration statement on Form S-4, and the final joint proxy
statement/prospectus has been delivered to the shareholders of ACE and
Chubb. This press release is not a substitute for the registration
statement, definitive joint proxy statement/prospectus or any other
documents that ACE or Chubb may file with the SEC or send to
shareholders in connection with the proposed transaction. SHAREHOLDERS
ARE URGED TO READ ALL RELEVANT DOCUMENTS FILED WITH THE SEC, INCLUDING
THE JOINT PROXY STATEMENT/PROSPECTUS, BECAUSE THEY CONTAIN IMPORTANT
INFORMATION ABOUT THE PROPOSED TRANSACTION.
Shareholders may obtain copies of the joint proxy
statement/prospectus and other documents filed with the SEC (when
available) free of charge at the SEC’s website, http://www.sec.gov.
Copies of documents filed with the SEC by ACE will be made available
free of charge on ACE’s website at www.acegroup.com.
Copies of documents filed with the SEC by Chubb will be made
available free of charge on Chubb’s website at www.chubb.com.
Participants in Solicitation
ACE, Chubb and their respective directors, executive officers and
other members of management and employees may be deemed to be
participants in the solicitation of proxies in respect of the proposed
transaction. Information about the directors and executive officers of
ACE is set forth in the proxy statement for ACE’s 2015 Annual General
Meeting, which was filed with the SEC on April 8, 2015, and ACE’s Annual
Report on Form 10-K for the year ended December 31, 2014, which was
filed with the SEC on February 27, 2015. Information about the
directors and executive officers of Chubb is set forth in the proxy
statement for Chubb’s 2015 Annual Meeting of Shareholders, which was
filed with the SEC on March 13, 2015, and Chubb’s Annual Report on Form
10-K for the year ended December 31, 2014, which was filed with the SEC
on February 26, 2015. Other information regarding the
participants in the proxy solicitation and a description of their direct
and indirect interests, by security holdings or otherwise, is contained
in the joint proxy statement/prospectus and other relevant materials
filed with the SEC. You may obtain free copies of these documents
as described above.
|
ACE Limited
|
|
Summary Consolidated Balance Sheets
|
|
(in millions of U.S. dollars, except per share data)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30
|
|
December 31
|
|
|
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
Investments
|
|
$
|
62,384
|
|
|
$
|
62,904
|
|
Cash
|
|
1,038
|
|
|
655
|
|
Insurance and reinsurance balances receivable
|
|
5,290
|
|
|
5,426
|
|
Reinsurance recoverable on losses and loss expenses
|
|
11,231
|
|
|
11,992
|
|
Other assets
|
|
17,817
|
|
|
17,271
|
|
|
Total assets
|
|
$
|
97,760
|
|
|
$
|
98,248
|
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
Unpaid losses and loss expenses
|
|
$
|
37,564
|
|
|
$
|
38,315
|
|
Unearned premiums
|
|
8,510
|
|
|
8,222
|
|
Other liabilities
|
|
22,559
|
|
|
22,124
|
|
|
Total liabilities
|
|
68,633
|
|
|
68,661
|
|
|
|
|
|
|
|
|
Shareholders' equity
|
|
|
|
|
|
|
Total shareholders' equity
|
|
29,127
|
|
|
29,587
|
|
|
Total liabilities and shareholders' equity
|
|
$
|
97,760
|
|
|
$
|
98,248
|
|
|
|
|
|
|
|
|
Book value per common share
|
|
$ 89.88
|
|
$
|
90.02
|
|
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
|
|
|
|
|
2015
|
|
|
2014
|
|
|
2015
|
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross premiums written
|
|
$
|
6,346
|
|
|
$
|
6,264
|
|
|
$
|
18,172
|
|
|
$
|
17,644
|
|
Net premiums written
|
|
4,709
|
|
|
4,729
|
|
|
13,569
|
|
|
13,473
|
|
Net premiums earned
|
|
4,719
|
|
|
4,754
|
|
|
13,006
|
|
|
13,056
|
|
Losses and loss expenses
|
|
2,643
|
|
|
2,684
|
|
|
7,182
|
|
|
7,233
|
|
Policy benefits
|
|
89
|
|
|
125
|
|
|
384
|
|
|
383
|
|
Policy acquisition costs
|
|
771
|
|
|
825
|
|
|
2,205
|
|
|
2,311
|
|
Administrative expenses
|
|
568
|
|
|
554
|
|
|
1,700
|
|
|
1,655
|
|
Net investment income
|
|
549
|
|
|
566
|
|
|
1,662
|
|
|
1,675
|
|
Net realized gains (losses)
|
|
(397)
|
|
|
(120)
|
|
|
(360)
|
|
|
(297)
|
|
Interest expense
|
|
68
|
|
|
70
|
|
|
207
|
|
|
213
|
|
Other income (expense):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gains (losses) from separate account assets
|
|
(49)
|
|
|
(6)
|
|
|
(32)
|
|
|
5
|
|
|
Other
|
|
37
|
|
|
52
|
|
|
93
|
|
|
134
|
|
Amortization of intangible assets
|
|
51
|
|
|
27
|
|
|
136
|
|
|
78
|
|
Chubb integration expenses
|
|
9
|
|
|
—
|
|
|
9
|
|
|
—
|
|
Income tax expense
|
|
132
|
|
|
176
|
|
|
395
|
|
|
402
|
|
Net income
|
|
$
|
528
|
|
|
$
|
785
|
|
|
$
|
2,151
|
|
|
$
|
2,298
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
$
|
2.74
|
|
|
$
|
2.64
|
|
|
$
|
7.38
|
|
|
$
|
7.32
|
|
Net income
|
|
$
|
1.62
|
|
|
$
|
2.32
|
|
|
$
|
6.53
|
|
|
$
|
6.75
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average diluted shares outstanding
|
|
327.2
|
|
|
337.7
|
|
|
329.2
|
|
|
340.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
P&C combined ratio
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss and loss expense ratio
|
|
58.8%
|
|
|
58.5%
|
|
|
58.3%
|
|
|
58.1%
|
|
Policy acquisition cost ratio
|
|
15.4%
|
|
|
16.5%
|
|
|
16.1%
|
|
|
16.9%
|
|
Administrative expense ratio
|
|
11.7%
|
|
|
11.3%
|
|
|
12.8%
|
|
|
12.5%
|
|
P&C combined ratio
|
|
85.9%
|
|
|
86.3%
|
|
|
87.2%
|
|
|
87.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
P&C underwriting income
|
|
$
|
597
|
|
|
$
|
586
|
|
|
$
|
1,477
|
|
|
$
|
1,454
|
|
Other income (expense) – operating(1)
|
|
$
|
12
|
|
|
$
|
(3)
|
|
|
$
|
9
|
|
|
$
|
(8)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Effective Q3 2015, excludes amortization of
intangible assets for all periods presented
|
|
ACE Limited
|
|
Consolidated Supplemental Segment Information
|
|
(in millions of U.S. dollars)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
|
|
|
September 30
|
|
September 30
|
|
|
|
2015
|
|
|
2014
|
|
|
2015
|
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross Premiums Written
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Insurance – North American P&C
|
|
$
|
2,372
|
|
|
$
|
2,126
|
|
|
$
|
7,402
|
|
|
$
|
6,497
|
|
Insurance – North American Agriculture
|
|
1,243
|
|
|
1,241
|
|
|
1,937
|
|
|
2,076
|
|
Insurance – Overseas General
|
|
2,019
|
|
|
2,156
|
|
|
6,486
|
|
|
6,641
|
|
Global Reinsurance
|
|
190
|
|
|
213
|
|
|
774
|
|
|
854
|
|
Life
|
|
522
|
|
|
528
|
|
|
1,573
|
|
|
1,576
|
|
Total
|
|
$
|
6,346
|
|
|
$
|
6,264
|
|
|
$
|
18,172
|
|
|
$
|
17,644
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Premiums Written
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Insurance – North American P&C
|
|
$
|
1,711
|
|
|
$
|
1,541
|
|
|
$
|
5,116
|
|
|
$
|
4,594
|
|
Insurance – North American Agriculture
|
|
737
|
|
|
764
|
|
|
1,204
|
|
|
1,346
|
|
Insurance – Overseas General
|
|
1,584
|
|
|
1,719
|
|
|
5,047
|
|
|
5,250
|
|
Global Reinsurance
|
|
185
|
|
|
208
|
|
|
719
|
|
|
794
|
|
Life
|
|
492
|
|
|
497
|
|
|
1,483
|
|
|
1,489
|
|
Total
|
|
$
|
4,709
|
|
|
$
|
4,729
|
|
|
$
|
13,569
|
|
|
$
|
13,473
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Premiums Earned
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Insurance – North American P&C
|
|
$
|
1,682
|
|
|
$
|
1,518
|
|
|
$
|
4,896
|
|
|
$
|
4,547
|
|
Insurance – North American Agriculture
|
|
739
|
|
|
766
|
|
|
1,124
|
|
|
1,199
|
|
Insurance – Overseas General
|
|
1,615
|
|
|
1,726
|
|
|
4,896
|
|
|
5,047
|
|
Global Reinsurance
|
|
203
|
|
|
255
|
|
|
649
|
|
|
800
|
|
Life
|
|
480
|
|
|
489
|
|
|
1,441
|
|
|
1,463
|
|
Total
|
|
$
|
4,719
|
|
|
$
|
4,754
|
|
|
$
|
13,006
|
|
|
$
|
13,056
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income (loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Insurance – North American P&C
|
|
$
|
326
|
|
|
$
|
337
|
|
|
$
|
1,066
|
|
|
$
|
1,126
|
|
Insurance – North American Agriculture
|
|
56
|
|
|
57
|
|
|
106
|
|
|
51
|
|
Insurance – Overseas General
|
|
330
|
|
|
348
|
|
|
811
|
|
|
869
|
|
Global Reinsurance
|
|
190
|
|
|
145
|
|
|
463
|
|
|
435
|
|
Life
|
|
57
|
|
|
72
|
|
|
190
|
|
|
221
|
|
Corporate
|
|
(62)
|
|
|
(68)
|
|
|
(206)
|
|
|
(209)
|
|
Total
|
|
$
|
897
|
|
|
$
|
891
|
|
|
$
|
2,430
|
|
|
$
|
2,493
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20151020006759/en/
Source: ACE Limited