ACE Limited (NYSE: ACL) today reported income excluding net realized gains for the fiscal 1998 third quarter ended June 30, 1998 of $102.7 million, or $0.57 per share, compared with $84.3 million, or $0.50 per share, for the same quarter in fiscal 1997. Net income for the fiscal 1998 third quarter was $171.5 million, or $0.95 per share, compared with $130.0 million, or $0.77 per share, for the same quarter last year. Earnings per share calculations are based on the weighted average number of shares calculated in accordance with FAS 128 on a diluted basis.
Brian Duperreault, chairman, president and chief executive officer of ACE commented: "We are pleased to report good results this quarter in what continues to be a very soft market. Our premium production increase reflects the inclusion of CAT Limited and ACE USA as well as excellent contributions from our Financial Lines division and Lloyd’s operations."
Mr. Duperreault continued: "Our global diversification strategy continues at a rapid pace with new ventures and acquisitions announced throughout the quarter in our major markets including Lloyd’s, North America and Bermuda."
Gross premiums written during the quarter increased by 66.7 percent to $372.5 million, compared with $223.4 million for the comparable quarter last year.
Net premiums written during the quarter increased 43.9 percent to $281.2 million compared with $195.5 million for the same period last year. Net premiums earned during the quarter were up 30.3 percent to $213.1 million from $163.6 million in the same quarter last year.
Gross premiums written for the first nine months of fiscal 1998 were $785.6 million compared to $559.2 million for the same period last year, an increase of 40.5 percent.
For the first nine months of fiscal 1998, net premiums written increased 22.3 percent to $604.8 million compared to $494.7 million for the first nine months of 1997. Net premiums earned for the nine months ended June 30, 1998 were $565.7 million compared with $486.6 million for the same period last year, a 16.2 percent increase.
Net investment income, excluding net realized gains, was $88.2 million for the fiscal 1998 third quarter, compared with $59.5 million for the same period last year, a 48.0 percent increase. For the first nine months of fiscal 1998, net investment income, excluding net realized gains was $219.7 million compared with $177.4 million for the same period last year, a 23.9 percent increase. During the 1998 third quarter, ACE had net realized gains of $68.8 million, compared with net realized gains of $45.8 million for the same quarter last year. For the nine months ended June 30, 1998, net realized gains were $241.9 million, compared with net realized gains of $85.2 million for the first nine months of fiscal 1997.
On July 9, 1998, ACE Limited completed the acquisition of Tarquin Limited, a UK-based holding company which owns Lloyd’s managing agency Charman Underwriting Agencies Ltd. and Tarquin Underwriting Limited, its corporate capital provider.
The ACE group of companies provides insurance and reinsurance for a diverse group of international clients. Operating subsidiaries are based in Bermuda, the United States, the United Kingdom (Lloyd's), and the Republic of Ireland. At June 30, 1998, ACE Limited had approximately $3.5 billion in shareholders' equity and $8.0 billion in assets.