Third quarter P&C underwriting income up 4.9% for ACE Group

ACE Ltd. reported Tuesday its financial results for the three months ending Sept. 30, reporting a combined ratio of 86.3% after “relatively light” catastrophe losses and a 2.7% year-over-year increase in net premiums written from North American property and casualty insurance.

The Zurich-based holding company of insurance carriers reported net premiums written, in property and casualty insurance, of $4.232 billion for the latest quarter, up 2.2% from $4.141 billion. All figures are in United States dollars.

Meanwhile, the Canadian Press reported that ACE may exclude Ebola coverage from some of its general liability policies.

In a filing with the U.S. Securities and Exchange Commission, ACE reported Tuesday its combined ratio for the third quarter was 86.3%, a 0.2-point improvement from 86.5% in Q3 2013

“The combined ratio of 86.3% benefitted from strong current accident year results, positive prior years’ reserve development and relatively light catastrophe losses” stated Evan G. Greenberg, chairman and chief executive officer of ACE, in a release. “Net investment income was up 8.5%, due primarily to growth in our invested assets and partnership distributions.”

In property and casualty, ACE’s Q3 underwriting income was $586 million in 2014, up 4.9% from $558 million in Q3 2013. Underwriting income excluding catastrophe losses was $440 million in Q3 2014, up 3.2% from $426 million in Q3 2013.

In Canada, ACE’s subsidiaries include ACE INA, ACE Tempest Re Canada Inc. and Rain and Hail Canada. In Canada, ACE’s commercial coverages include property, auto, surety, liability, marine, environment and computer network security.  Johnston, Iowa-based Rain and Hail LLC provides agriculture insurance in Canada and the U.S.

In North American agriculture, ACE reported net premiums written of $764 million in the third quarter of this year, down 5.2% from $805 million in Q3 2013.

The combined ratio in North American agriculture was 89.5% in Q3 2014, down from 92.3% in Q3 2013.

In North American P&C, ACE reported a Q3 combined ratio of 91.4% in 2014, up 3.1 points from 88.3% in 2013. Q3 net premiums written, in North American P&C, were $1.541 billion in 2014, up 2.7% from $1.5 billion in 2013.

The current accident year combined ratio, excluding catastrophe losses, was 88.5% in Q3 2014, up 0.2 points from 88.3% during the same period in 2013.

ACE’s companies include ESIS Inc., which provides claims and risk management services.

Worldwide, ACE reported net premiums written (including life and reinsurance) of $4.729 billion in Q3 2014, up from $4.620 billion during the same period in 2013. Net income for the third quarter was $785 million in 2014, down from $916 in 2013. Net investment income was $566 million in Q3 2014.

CP reported that ACE is making the decision, on Ebola coverage,  on a “case by case” basis for new and renewal policies under its global casualty unit.

ACE said in a statement that it is evaluating the risk for clients that might travel to or operate in select African countries with higher exposure to the Ebola virus. The company did not specify how many policies this might affect and declined to say if it has put an exclusions of this sort in place yet.

– With files from The Canadian Press