ACE reports third quarter profit, despite heavy crop losses

Zurich-based insurer ACE Ltd. has reported a net income of $640 million for the third quarter of this year (ended Sept. 30), compared to a $39 million net loss last year.

That’s despite crop losses of $97 million (after-tax) this quarter. “While the drought conditions in the U.S. severely impacted our crop insurance business and reduced operating income by $0.28 per share, as a total company we delivered outstanding underwriting results as demonstrated by a P&C combined ratio of 92%…,” chairman and CEO Evan Greenberg noted in a statement on the results.

Total company net premiums written increased 8.6% in Q3, the strongest this year, while property and casualty net premiums written increased 9.6%. P&C underwriting income was $335 million, compared with $391 million in 2011. Net premiums written for the company’s North American insurance business segment increased 14.9% and 22.2% for its global reinsurance business.

So far in 2012, the company has seen a net income of about $1.94 billion. “In the last 60 days, we closed an acquisition in Indonesia and announced two separate acquisitions that will significantly enhance our presence and capabilities in Mexico,” Greenberg also noted.

“We are optimistic about our future growth opportunities in these two exciting countries as well as globally. We believe that with our exceptional positioning, growing capabilities and strong balance sheet, our strategic options are accelerating.”