Summary
ACE Limited (now Chubb Limited) reported a net loss of $31 million for the third quarter of 2011, a significant decrease from the $675 million net income reported in the same period of 2010. This downturn was primarily driven by substantial catastrophe losses, totaling $147 million pre-tax, stemming from events like the Japan and New Zealand earthquakes, Australian storms, and Hurricane Irene. Despite these significant catastrophe impacts and continued economic volatility, the company's net premiums written saw a robust increase of 32% year-over-year for the quarter, reaching $4.34 billion, fueled by growth across its segments, particularly North American wholesale (boosted by the Rain and Hail acquisition) and international retail businesses. The company maintained a combined ratio of 90.3% for the quarter, indicating continued underwriting profitability despite increased catastrophe losses. For the first nine months of 2011, net income decreased to $835 million from $2.11 billion in the prior year, again significantly impacted by $630 million in pre-tax catastrophe losses. Total revenues grew 7% year-over-year to $12.36 billion. The company continued to execute on its acquisition strategy, integrating operations from New York Life in Korea and Hong Kong, which contributed to growth in the Life segment. ACE Limited also maintained a strong capital position, with total capitalization of $28.67 billion and a debt-to-capital ratio of 16.1%. The company continued its share repurchase program, with $500 million authorized remaining at the end of the quarter.
Financial Highlights
33 data points| Revenue | $4.29B |
| Interest Expense | $62.00M |
| Net Income | -$39.00M |
| EPS (Basic) | $-0.11 |
| EPS (Diluted) | $-0.11 |
| Shares Outstanding (Basic) | 338.39M |
| Shares Outstanding (Diluted) | 338.39M |
Key Highlights
- 1Reported a net loss of $31 million for Q3 2011, compared to a net income of $675 million in Q3 2010, largely due to $147 million in pre-tax catastrophe losses.
- 2Net premiums written increased by 32% to $4.34 billion in Q3 2011, driven by strong performance in North American wholesale (enhanced by the Rain and Hail acquisition) and international retail segments.
- 3The combined ratio remained favorable at 90.3% for Q3 2011, reflecting continued underwriting discipline despite significant catastrophe events.
- 4Nine-month net income was $835 million, down from $2.11 billion in the prior year, reflecting $630 million in pre-tax catastrophe losses for the period.
- 5Acquisitions of New York Life's Korea and Hong Kong operations contributed to growth in the Life segment.
- 6The company maintained a solid financial position with total capitalization of $28.67 billion and a debt-to-total capitalization ratio of 16.1%.
- 7Share repurchases continued, with $100 million repurchased in Q3 2011, and $500 million in repurchase authorization remaining as of September 30, 2011.