Ace has reported net income for the fourth quarter ended 31 December 2006 of $665m or $1.99 per common share after payment of preferred dividends, compared with net income of $236m or $0.69 per share for the same quarter last year.
Income excluding net realised gains (losses) for the fourth quarter was $643m, or $1.92 per share, compared with $244m or $0.72 per share for the same quarter of last year. The combined ratio for the current quarter was 88.2%. Annualised return on average equity for the quarter was 19%.
Net income for the year increased to $2.3bn or $6.91 per share, compared with $1bn or $3.31 per share for 2005. For 2006, income excluding net realised gains and the cumulative effect of an accounting change was $2,351m or $7.05 per share, compared with $955m or $3.06 per share for 2005. The combined ratio for the year was 88.1%, compared with the combined ratio for 2005 of 99.5%. Return on average equity for the year was 18.5%.
Evan Greenberg, president and chief executive officer of Ace, commented: “The quarter was an excellent finish to an outstanding year. Book value grew by over 20% and our return on equity exceeded 18%.
“While market conditions continue to soften and we remain firmly committed to underwriting discipline, we are a large organization with a broad capability and tremendous geographic reach. This creates opportunity for growth without compromising our underwriting standards. We are well positioned to continue our growth in book value for the foreseeable future.”
