ACE Limited: Recent Floods to Have Neglible Impact on its Crop Insurance Business
ACE Limited reported on Monday that, based on current estimates, the effects of the recent floods in the Midwestern United States on its crop insurance business will have a negligible impact on both second quarter and full-year earnings per share results.
Bermuda-based ACE is the second largest writer of crop insurance in the U.S. and conducts this line of business through Rain and Hail L.L.C., Inc., the premier provider of risk management crop insurance programs to rural America. “ACE maintains a well-diversified crop insurance book by product and geography and has been in this business for many years,” said Brian Dowd, Chief Executive Officer of ACE’s North American Insurance operations.
“In addition to reinsurance protection provided by the government, we are also protected by stop-loss reinsurance coverage we purchase on our portfolio from the private market. The recent floods are a tragic event and come at an inauspicious moment. They impact not just American farmers but the global population given current world food supply shortages.”
About ACE
The ACE Group of Companies is a global leader in insurance and reinsurance serving a diverse group of clients. Headed by ACE Limited, a component of the Standard & Poor’s 500 stock index, the ACE Group of Companies conducts its business on a worldwide basis with operating subsidiaries in more than 50 countries.
Source: Source: ACE Limited | Published on June 24, 2008
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