ACE Limited reported net income for the quarter ended March 31, 2013, of $2.77 per share, compared with $2.84 per share for the same quarter last year.
Operating income was $2.17 per share, compared with $2.05 per share for the same quarter last year. Book value and tangible book value per share increased 1.6% and 2.2%, respectively, from December 31, 2012. Book value and tangible book value per share now stand at $82.17 and $67.74, respectively. Operating return on equity for the quarter was 11.9%. The property and casualty (P&C) combined ratio for the quarter was 88.2%.
|First Quarter Summary|
|(in millions, except per share amounts)|
|(Per Share - Diluted)|
|Net realized gains (losses), net of tax||207||272||(24||)%||0.60||0.79||(24||)%|
|Operating income, net of tax (2)||$||746||$||701||7||%||$||2.17||$||2.05||6||%|
Evan G. Greenberg, Chairman and Chief Executive Officer of ACE Limited, commented: "ACE had an excellent first quarter and strong start to the year. We produced $746 million in after-tax operating income and our operating ROE was 12%, driven by strong underwriting results. We had a P&C combined ratio of 88.2% that benefited from excellent current accident year underwriting income as a result of both improved margin and growth in our U.S. and international businesses.
"Premium revenue growth across the company was very good, with total net premiums up over 6%. We are taking full advantage of the improved commercial P&C pricing environment in the U.S. and our strong presence in areas of the world where economic fundamentals are superior, such as Asia and Latin America. We completed our acquisition of Mexican surety company Fianzas Monterrey and anticipate closing our acquisition of ABA Seguros, Mexico's fourth-largest personal lines company, over the next few weeks. We are optimistic about our growth prospects for the balance of the year."