ACE Earnings Fell Due to Cat Losses
On Tuesday insurance carrier Ace Limited reported that its operating earnings fell 27 percent in the third quarter as catastrophe losses increased. Results, however, beat Wall Street expectations.
Third-quarter operating earnings, which exclude investment gains or losses, were $504 million, or $1.51 a share, higher than analysts' average forecast of $1.40 a share.The per-share figure was also higher than the company's guidance of $1.44 to $1.48 set earlier in the month.
Ace reported operating earnings of $692 million, or $2.06 a share, in the same period last year.
Chief Executive Evan Greenberg said he expected insurance rates will now begin to climb, after a prolonged softening.
"In my judgment, given both the rapid destruction and increased cost of capital, combined with the damage inflicted on a number of companies in our industry, the soft market for (property and casualty) insurance is essentially over, and rates will begin to firm," he said in a statement.
Published on October 29, 2008
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