Ace Limited Profit Shrinks, but Tops Forecast

Property and casualty insurer ACE Ltd. said Monday its second-quarter profit fell 28 percent on a decline in sales of insurance policies and reduced investment income.

Ace reported net income for the three months ended June 30 of $535 million, or $1.58 per share, down from a profit of $746 million, or $2.18 per share, in the year-ago quarter.

Excluding net realized gains and losses, and adjusting for foreign-currency exchange rates, Ace's profit was $706 million, or $2.09 per share, compared with a profit of $738 million, or $2.16 per share, in last year's second quarter.

On that basis, the latest quarter's performance beat the consensus forecast of analysts surveyed by Thomson Reuters, who expected a profit of $1.94 per share, on average.

Net property and casualty premiums written and earned decreased 5 percent in the latest quarter, including the impact of foreign-currency fluctuations. Net interest income also fell 5 percent.

Book value rose $1.8 billion, or 12 percent, in the quarter. Year-to-date, book value is up 14 percent, and has recovered all of the losses suffered in sharply declining markets in the second half of last year, the company said.

Ace, a unit of Ace Group based in Zurich, Switzerland, reported second-quarter results after its shares fell 38 cents, or about 0.8 percent, to $48.02.

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