ACE Limited (ACE) Tops Q1 EPS by 2c

ACE Limited (NYSE: ACE) reported Q1 EPS of $2.25, $0.02 better than the analyst estimate of $2.23.

Operating highlights for the quarter ended March 31, 2015, were as follows:

• P&C net premiums earned increased 3.5% and Global P&C net premiums earned increased 4.8% in constant dollars.
• The P&C expense ratio was 31.3%, compared with 31.1% last year. The Global P&C expense ratio, which excludes Agriculture, was 32.0% compared with 31.9% last year. The Agriculture expense ratio was (6.9)% compared with 5.7% last year.
• Total pre-tax and after-tax catastrophe losses including reinstatement premiums were $51 million (1.5 percentage points of the combined ratio) and $40 million, respectively, compared with $53 million (1.5 percentage points of the combined ratio) and $43 million, respectively, last year.
• Favorable prior period development pre-tax and after-tax were $83 million (2.4 percentage points of the combined ratio) and $67 million, respectively, compared with $62 million (1.6 percentage points of the combined ratio) and $63 million, respectively, last year.
• Operating cash flow was $1.1 billion.
• Net loss reserves decreased $112 million in the quarter after adjusting for foreign exchange.
• Net investment income was $551 million compared with $553 million last year. This quarter was negatively impacted by foreign currency movement of $7 million.
• Net realized and unrealized losses pre-tax totaled $27 million. Net realized losses of $63 million included a loss of $57 million from derivative accounting related to variable annuity reinsurance. Net unrealized gains of $36 million included an unrealized gain of $444 million in the investment portfolio, partially offset by an unrealized foreign exchange loss of $421 million.
• Operating return on equity was 10.8%. Return on equity computed using net income was 9.2%.
• Share repurchases totaled $340 million, or approximately 3.0 million shares, during the quarter. The company has repurchased approximately 650,000 shares for $73 million through April 20, 2015.
• Book value per share increased 0.9% to $90.81 from $90.02 at December 31, 2014. Excluding unfavorable foreign currency movement, book value per share increased 2.4%.
• Tangible book value per share increased 1.8% to $73.94 from $72.61 at December 31, 2014. Excluding unfavorable foreign currency movement, tangible book value per share increased 3.0%.

For earnings history and earnings-related data on ACE Limited (ACE) click here.

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