ACE Limited Announces Unaudited Consolidated Earnings Results for the Fourth Quarter and Full Year Ended December 31, 2011; Provides Earnings Guidance for the Year 2012
January 31, 2012 at 09:01 pm
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ACE Limited announced unaudited consolidated earnings results for the fourth quarter and full year ended December 31, 2011. For the quarter, the company reported net premiums earned of $3,831 million against $3,572 million for the same period a year ago. Net investment income was $565 million against $532 million for the same period a year ago. Net realized gains were $83 million against $305 million for the same period a year ago. Net income available to holders of common shares was $750 million or $2.20 diluted per share against $1,001 million or $2.92 diluted per share for the same period a year ago. Operating cash flow was $472 million. Net investment income increased 6% to $565 million due to higher invested assets and higher distributions from private equity funds, partially offset by lower new money rates. After-tax operating income for the quarter was $663 million or $1.94 per share. Operating ROE was nearly 12%. Tangible book value per share grew 4% in the quarter.
For the year, the company reported net premiums earned of $15,387 million against $13,504 million for the same period a year ago. Net investment income was $2,242 million against $2,070 million for the same period a year ago. Net realized losses were $795 million against net realized gains of $432 million for the same period a year ago. Net income available to holders of common shares was $1,585 million or $4.65 diluted per share against $3,108 million or $9.11 diluted per share for the same period a year ago. Operating cash flow was $3.5 billion. Book value per common share as on December 31, 2011 was $72.76 against $68.59 as at December 31, 2010. Net operating income was nearly $2.4 billion, down 11% from 2010. Operating ROE for the year was almost 11%. Tangible book value per share grew 7% for the year.
The company provides earnings guidance for the year 2012. For the year, the company expects operating income to range between $6.65 and $7.05 per share. Catastrophe losses included in the estimate are $475 million pre-tax ($385 million after-tax), which is up from last year's catastrophe loss guidance of $370 million pre-tax ($300 million after-tax). The operating income projections included in this guidance are for current accident year results only and by definition do not include any estimate for prior period reserve development. The company's $6.85 per share guidance midpoint compares to the actual 2011 accident year result of $5.68 per share and 2011 original guidance midpoint of $6.30 per share.
Chubb Limited is a Switzerland-based holding company. The Company, through its subsidiaries, provides a range of insurance and reinsurance products and services to clients around the world. Its segments include North America Commercial property and casualty (P&C) Insurance, North America Personal P&C Insurance, North America Agricultural Insurance, Overseas General Insurance, Global Reinsurance and Life Insurance. It offers commercial insurance products and service offerings, such as risk management programs, loss control, and engineering and complex claims management. It provides specialized insurance products to areas, such as aviation and energy. It also offers personal lines insurance coverage, including homeowners, automobile, valuables, umbrella liability and recreational marine products. In addition, it supplies personal accident, supplemental health and life insurance to individuals in select countries.
ACE Limited Announces Unaudited Consolidated Earnings Results for the Fourth Quarter and Full Year Ended December 31, 2011; Provides Earnings Guidance for the Year 2012