Insurance provider Ace Limited (ACE), Monday reported a decline in first-quarter profit, as net realized gains dropped from a year ago. However, operating profit, which excludes special items, improved from last year, as premiums increased with improvement in combined ratio. Going forward, the Swiss insurer lifted its earnings outlook for the full year 2013.
Zurich-based Ace's first-quarter profit dropped to $953 million or $2.77 per share from $973 million or $2.84 per share last year.
Net realized gains dropped to $206 million from $260 million last year.
Operating profit, which excludes realized gains and losses, improved to $746 million or $2.17 per share from $701 million or $2.05 per share last year. Analysts polled by Thomson Reuters expected earnings of $1.94 per share for the quarter. Analysts' estimates typically exclude special items.
ACE said its property and casualty, or P&C, combined ratio for the quarter improved to 88.2 percent from 89.2 percent last year. A ratio above 100 percent indicates that the company is paying out more money in claims than it is receiving from premiums.
Net premiums written for the quarter rose to $3.80 billion from $3.57 billion last year. Net premiums earned rose to $3.57 billion from $3.38 billion last year.
Eleven analysts had a consensus revenue estimate of $3.33 billion for the quarter.
Going forward, the company lifted its earnings outlook for the full year, and now expects operating earnings of $7.10 to $7.50 per share. Analysts currently expect earnings of $7.85 per share for 2013. Previously, Ace expected earnings of of $6.60 to $7.00 per share.
ACE closed Monday's regular trading at $89.27, up $0.24 or 0.27%, on a volume of 1.2 million shares on the NYSE. The stock further gained $1.84 or 2.06% in after-hours trade.
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