Combined ratio up 0.2 points, North American P&C premiums up 23.8% for ACE

ACE Ltd. released Tuesday its financial results for the three months ending June 30, reporting a 23.8% year-over-year increase in Q2 gross written premiums in North American property & casualty insurance, while underwriting income was unchanged from the same period in 2014.

Zurich-based ACE reported $2.905 billion in North American P&C gross written premiums in the latest quarter, compared to $2.347 billion during the second quarter of last year. All figures are in United States dollars.

In North American agriculture, gross written premiums dropped 5.8%, from $601 million in Q2 2014 to $566 million in the latest quarter.

The North American P&C segment is comprised of operations in the U.S., Canada and Bermuda, which include ACE USA, ACE Canada, ACE Commercial Risk Services, and ACE Private Risk Services, ACE Westchester and ACE Bermuda.

In an earlier filing with the U.S. Securities and Exchange commission, ACE said its coverages in North America include property, general liability, umbrella and excess liability, workers’ compensation, commercial marine, auto, directors and officers liability (D&O), errors and omissions (E&O), surety, medical liability, environmental, inland marine and aerospace, among others.

The North American agriculture segment provides crop insurance through its Rain and Hail unit, as well as farm, ranch and specialty commercial insurance.

“We produced strong underwriting results marked by a P&C combined ratio of 87.7% and underwriting income that was flat with prior year and up 5.5% in constant dollars,” ACE chairman and CEO Evan Greenberg stated in a release, adding investment income was up 3% in constant currency.

In Q2 2014, the combined ratio was 87.5%.

In insurance overseas – general, ACE reported gross written premiums of $2.212 billion in Q2 2015, down 0.5% from $2.224 billion in Q2 2014.

In global reinsurance, ACE reported gross written premiums of $292 million.

That segment includes ACE Tempest Re Canada, whose reinsurance coverages include property, catastrophe, casualty and surety, as well as offering access to Lloyd’s Syndicate 2488.

ACE reported net income in Q2 of $1.623 billion, up 7.2% from $1.513 billion in Q2 2014.

After the quarter ended, ACE announced July 1 it agreed to acquire The Chubb Corp. of Warren, N.J. That agreement – which is subject to approval by shareholders of both firms as well as regulators – was approved by the boards of both firms. The agreement is valued at $28.3 billion.

“The highlight of the quarter was our announced agreement to acquire Chubb,” Greenberg stated in a press release July 21. “We are moving quickly and the senior leadership of both companies has formed teams that are already engaged in integration planning.”