UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
Current Report
Pursuant
To Section 13 or 15 (d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) July 21, 2015
ACE LIMITED
(Exact name
of registrant as specified in its charter)
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Switzerland |
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1-11778 |
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98-0091805 |
(State or other jurisdiction
of Incorporation) |
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(Commission
File Number) |
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(I.R.S. Employer
Identification No.) |
Baerengasse 32
CH-8001 Zurich, Switzerland
Telephone: +41 (0)43 456 76 00
(Address of principal executive offices)
Not applicable
(Former
name or former address, if changed since last report)
Check the appropriate box below
if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-(b)) |
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 2.02. Results of Operations and Financial Condition
On July 21, 2015, ACE Limited issued a Press Release reporting its second quarter 2015 results and the availability of its second quarter 2015 Financial
Supplement. The Press Release and the Financial Supplement are attached hereto as Exhibit 99.1 and Exhibit 99.2, respectively, and are hereby incorporated herein by reference.
Item 9.01. Financial Statements, Pro Forma Financial Information and Exhibits
(d) Exhibits
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Exhibit Number |
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Description |
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99.1 |
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Press Release, Dated July 21, 2015, Reporting Second Quarter 2015 Results |
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99.2 |
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Second Quarter 2015 Financial Supplement |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned
thereunto duly authorized.
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ACE LIMITED |
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By: |
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/s/ Philip V. Bancroft |
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Philip V. Bancroft
Chief Financial Officer |
DATE: July 21, 2015
EXHIBIT INDEX
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Number |
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Description |
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Method of Filing |
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99.1 |
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Press Release, Dated July 21, 2015, |
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Furnished herewith |
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Reporting Second Quarter 2015 Results |
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99.2 |
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Second Quarter 2015 Financial Supplement |
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Furnished herewith |
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Exhibit 99.1
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ACE Limited Bärengasse 32
CH-8001 Zurich Switzerland |
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acegroup.com @ACEGroup |
ACE Reports Second Quarter Operating Income of $788 Million or
$2.40 per Share, P&C Combined Ratio of 87.7% and Operating
Return on Equity of 11.4%
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Net income of $942 million, up 21% |
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Global P&C net premiums written, which exclude Agriculture, up 6.4% or 13.2% in constant dollars |
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P&C underwriting income of $478 million, up 5.5% in constant dollars |
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Net investment income of $562 million, up 3.1% in constant dollars |
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Operating cash flow of $816 million |
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Unfavorable foreign currency movement, compared with the prior year, negatively impacted operating income by $29 million, or $0.09 per share, and reduced Global P&C net premiums written growth by seven percentage
points |
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The transfer of the Firemans Fund in-force business contributed $15 million of operating income that is non-recurring in 2016 |
Zurich July 21, 2015 ACE Limited (NYSE: ACE) today reported net income for the quarter ended June 30, 2015, of $2.86 per share,
compared with $2.28 per share for the same quarter last year.(1) Operating income was $2.40 per share, compared with $2.42 per share for the same quarter last year. Operating return on equity for
the quarter was 11.4%. The property and casualty (P&C) combined ratio for the quarter was 87.7%. Book value per share increased 0.5% from March 31, 2015, to $91.27. Book value per share growth was primarily impacted by rising interest rates
that resulted in unrealized losses of $672 million, after-tax, in the companys investment portfolio, which are recorded in other comprehensive income on the balance sheet. The unrealized losses were partially offset by favorable foreign
currency movement in the quarter and realized gains related to the companys variable annuity reinsurance business, which together amounted to $205 million, after-tax. Tangible book value per share decreased 1.5% from March 31, 2015, to
$72.84, compared with the prior year, and was impacted by goodwill and intangibles related to the Firemans Fund acquisition that closed during the quarter. Excluding the impact of the acquisition, tangible book value per share increased 0.5%.
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ACE®, ACE logo®, and ACE insured® are trademarks of ACE
Limited. |
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1 |
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ACE LIMITED NEWS RELEASE
Second Quarter Summary
(in millions, except per share amounts)
(Unaudited)
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(Per Share Diluted) |
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2015 |
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2014 |
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Change |
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2015 |
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2014 |
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Change |
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Operating income, net of tax |
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$ |
788 |
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$ |
825 |
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(4.5 |
)% |
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$ |
2.40 |
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$ |
2.42 |
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(0.8 |
)% |
Adjusted net realized gains (losses), net of tax |
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154 |
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(46 |
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NM |
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0.46 |
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(0.14 |
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NM |
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Net income |
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$ |
942 |
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$ |
779 |
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20.8 |
% |
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$ |
2.86 |
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$ |
2.28 |
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25.4 |
% |
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For the six months ended June 30, 2015, net income was $4.91 per share, compared with $4.43 per share for 2014. Operating
income was $4.64 per share, compared with $4.69 per share for 2014. The P&C combined ratio for the six months ended June 30, 2015, was 88.0% versus 88.2% prior year. Book value and tangible book value per share increased 1.4% and 0.3%,
respectively, from December 31, 2014. Book value and tangible book value per share growth were negatively impacted by unrealized losses in the investment portfolio and unfavorable foreign currency movement during the year. Excluding foreign
currency movement, book value per share increased 2.5%. Excluding foreign currency movement and the Firemans Fund acquisition that closed during the year, tangible book value per share increased 3.2%.
Six Months Ended Summary
(in millions, except per share amounts)
(Unaudited)
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(Per Share Diluted) |
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2015 |
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2014 |
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Change |
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2015 |
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2014 |
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Change |
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Operating income, net of tax |
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$ |
1,533 |
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$ |
1,602 |
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(4.3 |
)% |
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$ |
4.64 |
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$ |
4.69 |
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(1.1 |
)% |
Adjusted net realized gains (losses), net of tax |
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90 |
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(89 |
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NM |
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0.27 |
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(0.26 |
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NM |
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Net income |
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$ |
1,623 |
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$ |
1,513 |
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7.2 |
% |
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$ |
4.91 |
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$ |
4.43 |
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10.8 |
% |
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Evan G. Greenberg, Chairman and Chief Executive Officer of ACE Limited, commented: ACE had an excellent second quarter
with earnings per share essentially flat with prior year as a strong dollar impacted both revenue and earnings. After-tax operating income was $788 million, or $2.40 per share, leading to an operating ROE of 11.4%. We produced strong underwriting
results marked by a P&C combined ratio of 87.7% and underwriting income that was flat with prior year and up 5.5% in constant dollars. Investment income was up 3% in constant currency a terrific result given the interest rate
environment. Global P&C net premiums written grew about 6.5%, or over 13% when adjusted for foreign exchange, as we took advantage of growth opportunities in the U.S., Asia and Latin America.
The highlight of the quarter was our announced agreement to acquire Chubb. We are moving quickly and the senior leadership of both companies has
formed teams that are already engaged in integration planning. The sense of excitement and energy from the leadership of both companies is inspiring. We
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ACE®, ACE logo®, and ACE insured® are trademarks of ACE
Limited. |
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ACE LIMITED NEWS RELEASE
are planning to file an S-4 by the end of the month and are on track to file our regulatory approvals. In sum, I am even more convinced of the potential opportunity our combined companies
represent in terms of talent and capabilities.
Operating highlights for the quarter ended June 30, 2015, were as follows:
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(in millions of U.S. dollars except for percentages) |
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2Q 2015 |
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2Q 2014 |
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Change |
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P&C |
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Net premiums written |
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$ |
4,284 |
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$ |
4,061 |
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5.5 |
% |
Net premiums written constant-dollar |
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$ |
3,839 |
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11.6 |
% |
Underwriting income |
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$ |
478 |
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$ |
478 |
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Combined ratio |
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87.7 |
% |
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87.5 |
% |
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Current accident year underwriting income excluding catastrophe losses |
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$ |
449 |
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$ |
432 |
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3.6 |
% |
Current accident year combined ratio excluding catastrophe losses |
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88.4 |
% |
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88.7 |
% |
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Global P&C (excludes Agriculture) |
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Net premiums written |
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$ |
3,905 |
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$ |
3,673 |
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6.4 |
% |
Net premiums written constant-dollar |
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$ |
3,451 |
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13.2 |
% |
Underwriting income |
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$ |
457 |
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$ |
451 |
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1.4 |
% |
Combined ratio |
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87.1 |
% |
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87.1 |
% |
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Current accident year underwriting income excluding catastrophe losses |
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$ |
421 |
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$ |
396 |
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6.0 |
% |
Current accident year combined ratio excluding catastrophe losses |
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88.2 |
% |
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88.7 |
% |
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Agriculture |
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Net premiums written |
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$ |
379 |
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$ |
388 |
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(2.4 |
)% |
Underwriting income |
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$ |
21 |
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$ |
27 |
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(24.4 |
)% |
Combined ratio |
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93.6 |
% |
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91.8 |
% |
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Current accident year underwriting income excluding catastrophe losses |
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$ |
28 |
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$ |
36 |
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(23.3 |
)% |
Current accident year combined ratio excluding catastrophe losses |
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91.4 |
% |
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89.1 |
% |
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ACE®, ACE logo®, and ACE insured® are trademarks of ACE
Limited. |
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3 |
ACE LIMITED NEWS RELEASE
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P&C net premiums earned increased 0.8%, or 7% in constant dollars. Global P&C net premiums earned increased 1.2%, or 8% in constant dollars. |
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Underwriting income included a $49 million benefit related to the transfer of the Firemans Fund in-force business at the time of the transaction and will be non-recurring in 2016. This benefit was partially offset
by purchase accounting intangible amortization of $29 million, included in other income, resulting in a net $20 million pre-tax, or $15 million after-tax, increase in operating income which will not recur in 2016. |
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The P&C expense ratio for the quarter was 28.8%, compared with 29.3% last year. The Global P&C expense ratio, which excludes Agriculture, was 30.6% compared with 31.4% last year. The Agriculture expense ratio
for the quarter was 8.3% compared with 7.4% last year. |
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Total pre-tax and after-tax catastrophe losses including reinstatement premiums were $124 million (3.2 percentage points of the combined ratio) and $106 million, respectively, compared with $80 million (2.1 percentage
points of the combined ratio) and $67 million, respectively, last year. |
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Favorable prior period development pre-tax and after-tax for the quarter were $153 million (3.9 percentage points of the combined ratio) and $128 million, respectively, compared with $126 million (3.3 percentage points
of the combined ratio) and $106 million, respectively, last year. |
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Operating cash flow was $816 million for the quarter. |
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Net loss reserves increased $717 million in the quarter, principally reflecting the acquisition of Firemans Fund and favorable foreign currency movement since March 31, 2015. Net loss reserves increased $132
million for the year. |
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Net investment income was $562 million compared with $556 million last year. This quarter was negatively impacted by foreign currency movement of $11 million. |
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Net realized and unrealized losses pre-tax totaled $559 million for the quarter. Net realized gains of $161 million included a gain of $102 million from derivative accounting related to variable annuity reinsurance. Net
unrealized losses of $720 million included an unrealized loss of $850 million in the investment portfolio, primarily due to rising interest rates, partially offset by an unrealized foreign exchange gain of $136 million. |
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Operating return on equity was 11.4% for the quarter and 11.0% year to date. Return on equity computed using net income was 12.7% for the quarter and 11.0% year to date. |
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Share repurchases totaled $394 million, or approximately 3.7 million shares, during the quarter. The company has repurchased approximately 6.7 million shares for $734 million through June 30, 2015. The
company has discontinued its share repurchase program in connection with the announced planned acquisition of Chubb. |
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Book value per share increased 0.5% to $91.27 from $90.81 at March 31, 2015, and increased 1.4% from $90.02 at December 31, 2014. For the year, book value per share, excluding foreign currency movement,
increased 2.5% from December 31, 2014. |
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Tangible book value per share decreased 1.5% to $72.84 from $73.94 at March 31, 2015, and increased 0.3% from $72.61 at December 31, 2014. For the year, tangible book value per share, excluding foreign
currency movement and the impact of goodwill and intangibles related to the acquisition of Firemans Fund, increased 3.2%. |
Details of
financial results by business segment are available in the ACE Limited Financial Supplement. Key segment items for the quarter ended June 30, 2015, include:
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Insurance North American P&C: Net premiums written increased 20.8%. Gross premiums written and net premiums written included $428 million and $252 million, respectively, from the transfer of the
Firemans Fund in-force business at the time of the transaction and will be non-recurring in 2016. Excluding the transfer, net premiums written increased 6% on a constant-dollar basis. The combined ratio was 85.2% compared with 87.1%. Excluding
the transfer, the combined ratio was 88.1%. The current accident year combined ratio excluding catastrophe losses was 85.0% compared with 87.3%. |
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ACE®, ACE logo®, and ACE insured® are trademarks of ACE
Limited. |
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4 |
ACE LIMITED NEWS RELEASE
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Insurance North American Agriculture: Net premiums written decreased 2.4%. The combined ratio was 93.6% compared with 91.8%. The current accident year combined ratio excluding catastrophe losses was 91.4%
compared with 89.1%. |
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Insurance Overseas General: Net premiums written decreased 5.1%, or increased 7.6% on a constant-dollar basis. The combined ratio was 89.2% compared with 87.1%. The current accident year combined ratio excluding
catastrophe losses was 89.8% compared with 89.3%. |
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Global Reinsurance: Net premiums written decreased 5.9%, or 3.9% on a constant-dollar basis. The combined ratio was 65.7% compared with 69.9%. The current accident year combined ratio excluding catastrophe losses was
79.6% compared with 75.4%. |
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Life segment: Operating income was $67 million compared with $72 million. International life insurance net premiums written and deposits collected increased 8.2% on a constant-dollar basis for the year.
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Please refer to the ACE Limited Financial Supplement, dated June 30, 2015, which is posted on the companys website in the
Investor Information section, and access Financial Reports for more detailed information on individual segment performance, together with additional disclosure on reinsurance recoverable, loss reserves, investment portfolio and capital structure.
ACE will hold its second quarter earnings conference call on Wednesday, July 22, 2015, beginning at 8:30 a.m. Eastern. The earnings conference call
will be available via live webcast at www.acegroup.com or by dialing 800-967-7188 (within the United States) or 719-325-2322 (international), passcode 1713107. Please refer to the ACE Group website in the Investor Information section under
Calendar of Events for details. A replay of the call will be available until Wednesday, August 5, 2015, and the archived webcast will be available for approximately one month. To listen to the replay, please dial 888-203-1112 (in the United
States) or 719-457-0820 (international), passcode 1713107.
About ACE Group
ACE Group is one of the worlds largest multiline property and casualty insurers. With operations in 54 countries, ACE provides commercial and personal
property and casualty insurance, personal accident and supplemental health insurance, reinsurance and life insurance to a diverse group of clients. ACE Limited, the parent company of ACE Group, is listed on the New York Stock Exchange (NYSE: ACE)
and is a component of the S&P 500 index. Additional information can be found at: www.acegroup.com.
Investor Contact
Helen Wilson: (441) 299-9283; helen.wilson@acegroup.com
Media Contact
Jeffrey Zack: (212) 827-4444;
jeffrey.zack@acegroup.com
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ACE®, ACE logo®, and ACE insured® are trademarks of ACE
Limited. |
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5 |
ACE LIMITED NEWS RELEASE
(1) |
All comparisons are with the same period last year unless specifically stated. |
Regulation G
Non-GAAP Financial Measures
In presenting our results, we included and discussed certain non-GAAP measures. These non-GAAP measures, which may be
defined differently by other companies, are important for an understanding of our overall results of operations and financial condition. However, they should not be viewed as a substitute for measures determined in accordance with generally accepted
accounting principles (GAAP).
Throughout this document there are various measures presented on a constant-dollar basis (i.e., excludes the impact of
foreign exchange). We believe it is useful to evaluate the trends in our results, exclusive of the effect of fluctuations in exchange rates between the U.S. dollar and the currencies in which our international business is transacted, as these
exchange rates could fluctuate significantly between periods and distort the analysis of trends. The impact is determined by assuming constant foreign exchange rates between periods by translating prior period results using the same local currency
exchange rates as the comparable current period.
Adjusted net realized gains (losses), net of tax, includes net realized gains (losses) and net
realized gains (losses) recorded in other income (expense) related to unconsolidated subsidiaries, and excludes realized gains and losses on crop derivatives. These derivatives were purchased to provide economic benefit, in a manner similar to
reinsurance protection, in the event that a significant decline in commodity pricing impacts underwriting results. We view gains and losses on these derivatives as part of the results of our underwriting operations, and therefore realized gains and
losses from these derivatives are reclassified to adjusted losses and loss expenses. The P&C combined ratio includes adjusted losses and loss expenses in the ratio numerator.
Underwriting income, P&C underwriting income, and Global P&C underwriting income are calculated by subtracting losses and loss expenses, policy
benefits, policy acquisition costs and administrative expenses from net premiums earned. P&C underwriting income also includes gains (losses) on crop derivatives. We use underwriting income and operating ratios to monitor the results of our
operations without the impact of certain factors, including net investment income, other income (expense), interest and income tax expense and adjusted net realized gains (losses). Current accident year underwriting income excluding catastrophe
losses is underwriting income adjusted to exclude catastrophe losses and prior period development (PPD). We believe it is useful to exclude catastrophe losses, as they are not predictable as to timing and amount, and PPD as these unexpected loss
developments on historical reserves are not indicative of our current underwriting performance. We believe the use of these measures enhances the understanding of our results of operations by highlighting the underlying profitability of our
insurance business.
Operating income or income excluding adjusted net realized gains (losses), net of tax is a common performance measurement for
insurance companies. We believe this presentation enhances the understanding of our results of operations by highlighting the underlying profitability of our insurance business. We exclude adjusted net realized gains (losses) because the amount of
these gains (losses) is heavily influenced by the availability of market opportunities. In addition, we disclose operating income excluding the impact of foreign exchange in order to adjust for the distortive effects of fluctuations in exchange
rates.
P&C combined ratio excluding catastrophe losses and PPD and current accident year P&C combined ratio excluding catastrophe losses
exclude impacts of catastrophe losses and PPD. We believe this measure provides a better evaluation of our core underwriting performance and enhances the understanding of the trends in our property and casualty business that may be obscured by these
items.
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ACE®, ACE logo®, and ACE insured® are trademarks of ACE
Limited. |
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6 |
ACE LIMITED NEWS RELEASE
Global P&C performance metrics comprise consolidated operating results (including corporate) and exclude the operating results of the companys
Life and Insurance North American Agriculture segments. We believe that these measures are useful and meaningful to investors as they are used by management to assess the companys global P&C operations which are the most
economically similar. We exclude the Insurance North American Agriculture and Life segments because the results of these businesses do not always correlate with the results of our global P&C operations.
International life net premiums written and deposits collected, is adjusted to include deposits collected on universal life and investment contracts
(life deposits). Life deposits are not reflected as revenues in our consolidated statements of operations in accordance with GAAP. However, we include life deposits in presenting growth in our life insurance business because new life deposits are an
important component of production and key to our efforts to grow our business.
Operating return on equity (ROE) or ROE calculated using operating
income is an annualized financial measure. The ROE numerator includes income adjusted to exclude adjusted net realized gains (losses), net of tax. The ROE denominator includes the average shareholders equity for the period adjusted to
exclude unrealized gains (losses) on investments, net of tax. To annualize a quarterly rate, multiply by four. Annualized ROE calculated using operating income is a useful measure as it enhances the understanding of the return on shareholders
equity by highlighting the underlying profitability relative to shareholders equity excluding the effect of unrealized gains and losses on our investments.
Tangible book value per common share is shareholders equity less goodwill and other intangible assets divided by the shares outstanding. We
believe that goodwill and other intangible assets are not indicative of our underlying insurance results or trends and make book value comparisons to less acquisitive peer companies less meaningful. In addition, we disclose per share measures for
book value and tangible book value that exclude the impact of foreign currency fluctuations during 2015 in order to adjust for the distortive effects of fluctuations in exchange rates.
Tangible book value per common share excluding 2015 acquisitions is shareholders equity less goodwill and other intangible assets divided by the
shares outstanding. The numerator adds back the goodwill and other intangible assets related to the acquisition of the Firemans Fund high net worth personal lines business in order to control for the distortive effect of acquisitions.
Other income (expense) operating excludes from consolidated Other income (expense) the portion of net realized gains and losses related to
unconsolidated entities and gains and losses from fair value changes in separate account assets that do not qualify for separate account reporting under GAAP. Net realized gains (losses) related to unconsolidated entities is excluded from operating
income in order to enhance the understanding of our core results of operations as they are heavily influenced by, and fluctuate in part according to market conditions.
See reconciliation of Non-GAAP Financial Measures on pages 22-24 in the Financial Supplement. These measures should not be viewed as a substitute for net
income, return on equity, or effective tax rate determined in accordance with GAAP.
NM not meaningful comparison
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ACE®, ACE logo®, and ACE insured® are trademarks of ACE
Limited. |
|
7 |
ACE LIMITED NEWS RELEASE
Cautionary Statement Regarding Forward-Looking Statements:
Forward-looking statements made in this press release, such as those related to company performance, including 2015 performance and growth opportunities,
and statements about the benefits of the proposed transaction involving ACE and Chubb, ACEs and Chubbs plans, objectives, expectations and intentions and other statements that are not historical facts reflect our current views with
respect to future events and financial performance and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements involve risks and uncertainties that could cause actual results to differ
materially, including without limitation, the following: competition, pricing and policy term trends, the levels of new and renewal business achieved, the frequency of unpredictable catastrophic events, actual loss experience, uncertainties in the
reserving or settlement process, integration activities and performance of acquired companies, new theories of liability, judicial, legislative, regulatory and other governmental developments, litigation tactics and developments, investigation
developments and actual settlement terms, the amount and timing of reinsurance recoverable, credit developments among reinsurers, rating agency action, possible terrorism or the outbreak and effects of war, economic, political, regulatory, insurance
and reinsurance business conditions, potential strategic opportunities including acquisitions and our ability to achieve and integrate them, as well as managements response to these factors, and other factors identified in our filings with the
Securities and Exchange Commission (SEC).
In addition, with regard to the proposed transaction involving ACE and Chubb, important factors that
could cause actual results to differ materially from those indicated by the forward-looking statements include, without limitation, the following: the inability to complete the transaction in a timely manner; the inability to complete the
transaction due to the failure of Chubbs shareholders to approve the transaction agreement or the failure of ACE shareholders to approve, among other matters, the issuance of ACE common shares in connection with the transaction; the failure to
satisfy other conditions to completion of the transaction, including receipt of required regulatory approvals; the failure of the proposed transaction to close for any other reason; the possibility that any of the anticipated benefits of the
proposed transaction will not be realized; the risk that integration of Chubbs operations with those of ACE will be materially delayed or will be more costly or difficult than expected; the effect of the announcement of the transaction on
ACEs, Chubbs or the combined companys respective business relationships, operating results and business generally; and diversion of managements attention from ongoing business operations and opportunities. In addition, you
should carefully consider the risks and uncertainties and other factors that may affect future results of the combined company described in the section entitled Risk Factors in the joint proxy statement/prospectus to be delivered to
ACEs and Chubbs respective shareholders, and in ACEs and Chubbs respective filings with the SEC.
Readers are cautioned not
to place undue reliance on these forward-looking statements, which speak only as of the dates on which they are made. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information,
future events or otherwise.
Additional Information and Where to Find It
This press release does not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any vote or approval.
This press release may be deemed to be solicitation material in respect of the proposed transaction between ACE and Chubb. In connection with the proposed transaction, ACE intends to file a registration statement on Form S-4, containing a joint
proxy statement/prospectus with the SEC. The final joint proxy statement/prospectus will be delivered to the
|
|
|
|
|
|
|
ACE®, ACE logo®, and ACE insured® are trademarks of ACE
Limited. |
|
8 |
ACE LIMITED NEWS RELEASE
shareholders of ACE and Chubb. This press release is not a substitute for the registration statement, definitive joint proxy statement/prospectus or any other documents that ACE or Chubb may file
with the SEC or send to shareholders in connection with the proposed transaction. SHAREHOLDERS ARE URGED TO READ ALL RELEVANT DOCUMENTS FILED WITH THE SEC, INCLUDING THE JOINT PROXY STATEMENT/PROSPECTUS, BECAUSE THEY WILL CONTAIN IMPORTANT
INFORMATION ABOUT THE PROPOSED TRANSACTION.
Shareholders will be able to obtain copies of the joint proxy statement/prospectus and other documents
filed with the SEC (when available) free of charge at the SECs website, http://www.sec.gov. Copies of documents filed with the SEC by ACE will be made available free of charge on ACEs website at www.acegroup.com. Copies of documents
filed with the SEC by Chubb will be made available free of charge on Chubbs website at www.chubb.com.
Participants in Solicitation
ACE, Chubb and their respective directors, executive officers and other members of management and employees may be deemed to be
participants in the solicitation of proxies in respect of the proposed transaction. Information about the directors and executive officers of ACE is set forth in the proxy statement for ACEs 2015 Annual General Meeting, which was filed with
the SEC on April 8, 2015, and ACEs Annual Report on Form 10-K for the year ended December 31, 2014, which was filed with the SEC on February 27, 2015. Information about the directors and executive officers of Chubb is set forth
in the proxy statement for Chubbs 2015 Annual Meeting of Shareholders, which was filed with the SEC on March 13, 2015, and Chubbs Annual Report on Form 10-K for the year ended December 31, 2014, which was filed with the SEC on
February 26, 2015. Other information regarding the participants in the proxy solicitation and a description of their direct and indirect interests, by security holdings or otherwise, will be contained in the joint proxy statement/prospectus and
other relevant materials filed with the SEC. You may obtain free copies of these documents as described above.
(tables to
follow)
|
|
|
|
|
|
|
ACE®, ACE logo®, and ACE insured® are trademarks of ACE
Limited. |
|
9 |
ACE LIMITED NEWS RELEASE
ACE Limited
Summary
Consolidated Balance Sheets
(in millions of U.S. dollars, except per share data)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
June 30 2015 |
|
|
December 31 2014 |
|
|
|
|
Assets |
|
|
|
|
|
|
|
|
Investments |
|
$ |
63,265 |
|
|
$ |
62,904 |
|
Cash |
|
|
790 |
|
|
|
655 |
|
Insurance and reinsurance balances receivable |
|
|
5,757 |
|
|
|
5,426 |
|
Reinsurance recoverable on losses and loss expenses |
|
|
11,775 |
|
|
|
11,992 |
|
Other assets |
|
|
18,253 |
|
|
|
17,271 |
|
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
99,840 |
|
|
$ |
98,248 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
|
|
Unpaid losses and loss expenses |
|
$ |
38,230 |
|
|
$ |
38,315 |
|
Unearned premiums |
|
|
8,879 |
|
|
|
8,222 |
|
Other liabilities |
|
|
23,176 |
|
|
|
22,124 |
|
|
|
|
|
|
|
|
|
|
Total liabilities |
|
|
70,285 |
|
|
|
68,661 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders equity |
|
|
|
|
|
|
|
|
Total shareholders equity |
|
|
29,555 |
|
|
|
29,587 |
|
|
|
|
|
|
|
|
|
|
Total liabilities and shareholders equity |
|
$ |
99,840 |
|
|
$ |
98,248 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Book value per common share |
|
$ |
91.27 |
|
|
$ |
90.02 |
|
|
|
|
|
|
|
|
ACE®, ACE logo®, and ACE insured® are trademarks of ACE
Limited. |
|
10 |
ACE LIMITED NEWS RELEASE
ACE Limited
Summary
Consolidated Financial Data
(in millions of U.S. dollars, except share, per share data, and ratios)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
Six Months Ended |
|
|
|
June 30 |
|
|
June 30 |
|
|
|
2015 |
|
|
2014 |
|
|
2015 |
|
|
2014 |
|
Gross premiums written |
|
$ |
6,504 |
|
|
$ |
6,006 |
|
|
$ |
11,826 |
|
|
$ |
11,380 |
|
Net premiums written |
|
|
4,784 |
|
|
|
4,559 |
|
|
|
8,860 |
|
|
|
8,744 |
|
Net premiums earned |
|
|
4,360 |
|
|
|
4,332 |
|
|
|
8,287 |
|
|
|
8,302 |
|
Losses and loss expenses |
|
|
2,417 |
|
|
|
2,388 |
|
|
|
4,539 |
|
|
|
4,549 |
|
Policy benefits |
|
|
153 |
|
|
|
144 |
|
|
|
295 |
|
|
|
258 |
|
Policy acquisition costs |
|
|
727 |
|
|
|
758 |
|
|
|
1,434 |
|
|
|
1,486 |
|
Administrative expenses |
|
|
578 |
|
|
|
566 |
|
|
|
1,132 |
|
|
|
1,101 |
|
Net investment income |
|
|
562 |
|
|
|
556 |
|
|
|
1,113 |
|
|
|
1,109 |
|
Net realized gains (losses) |
|
|
126 |
|
|
|
(73 |
) |
|
|
37 |
|
|
|
(177 |
) |
Interest expense |
|
|
71 |
|
|
|
72 |
|
|
|
139 |
|
|
|
143 |
|
Other income (expense): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gains (losses) from separate account assets |
|
|
6 |
|
|
|
17 |
|
|
|
17 |
|
|
|
11 |
|
Other |
|
|
(23 |
) |
|
|
8 |
|
|
|
(29 |
) |
|
|
31 |
|
Income tax expense |
|
|
143 |
|
|
|
133 |
|
|
|
263 |
|
|
|
226 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
$ |
942 |
|
|
$ |
779 |
|
|
$ |
1,623 |
|
|
$ |
1,513 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income |
|
$ |
2.40 |
|
|
$ |
2.42 |
|
|
$ |
4.64 |
|
|
$ |
4.69 |
|
Net income |
|
$ |
2.86 |
|
|
$ |
2.28 |
|
|
$ |
4.91 |
|
|
$ |
4.43 |
|
|
|
|
|
|
Weighted average diluted shares outstanding |
|
|
328.7 |
|
|
|
341.1 |
|
|
|
330.2 |
|
|
|
341.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
P&C combined ratio |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss and loss expense ratio |
|
|
58.9 |
% |
|
|
58.2 |
% |
|
|
58.0 |
% |
|
|
58.0 |
% |
Policy acquisition cost ratio |
|
|
15.7 |
% |
|
|
16.6 |
% |
|
|
16.5 |
% |
|
|
17.1 |
% |
Administrative expense ratio |
|
|
13.1 |
% |
|
|
12.7 |
% |
|
|
13.5 |
% |
|
|
13.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
P&C combined ratio |
|
|
87.7 |
% |
|
|
87.5 |
% |
|
|
88.0 |
% |
|
|
88.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
P&C underwriting income |
|
$ |
478 |
|
|
$ |
478 |
|
|
$ |
880 |
|
|
$ |
868 |
|
Other income (expense) operating |
|
$ |
(56 |
) |
|
$ |
(28 |
) |
|
$ |
(88 |
) |
|
$ |
(56 |
) |
|
|
|
|
|
|
|
ACE®, ACE logo®, and ACE insured® are trademarks of ACE
Limited. |
|
11 |
ACE LIMITED NEWS RELEASE
ACE Limited
Consolidated
Supplemental Segment Information
(in millions of U.S. dollars)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
Six Months Ended |
|
|
|
June 30 |
|
|
June 30 |
|
|
|
2015 |
|
|
2014 |
|
|
2015 |
|
|
2014 |
|
|
|
|
|
|
Gross Premiums Written |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Insurance North American P&C |
|
$ |
2,905 |
|
|
$ |
2,347 |
|
|
$ |
5,030 |
|
|
$ |
4,371 |
|
Insurance North American Agriculture |
|
|
566 |
|
|
|
601 |
|
|
|
694 |
|
|
|
835 |
|
Insurance Overseas General |
|
|
2,212 |
|
|
|
2,224 |
|
|
|
4,467 |
|
|
|
4,485 |
|
Global Reinsurance |
|
|
292 |
|
|
|
308 |
|
|
|
584 |
|
|
|
641 |
|
Life |
|
|
529 |
|
|
|
526 |
|
|
|
1,051 |
|
|
|
1,048 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
$ |
6,504 |
|
|
$ |
6,006 |
|
|
$ |
11,826 |
|
|
$ |
11,380 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Premiums Written |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Insurance North American P&C |
|
$ |
1,975 |
|
|
$ |
1,635 |
|
|
$ |
3,405 |
|
|
$ |
3,053 |
|
Insurance North American Agriculture |
|
|
379 |
|
|
|
388 |
|
|
|
467 |
|
|
|
582 |
|
Insurance Overseas General |
|
|
1,669 |
|
|
|
1,760 |
|
|
|
3,463 |
|
|
|
3,531 |
|
Global Reinsurance |
|
|
261 |
|
|
|
278 |
|
|
|
534 |
|
|
|
586 |
|
Life |
|
|
500 |
|
|
|
498 |
|
|
|
991 |
|
|
|
992 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
$ |
4,784 |
|
|
$ |
4,559 |
|
|
$ |
8,860 |
|
|
$ |
8,744 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Premiums Earned |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Insurance North American P&C |
|
$ |
1,688 |
|
|
$ |
1,542 |
|
|
$ |
3,214 |
|
|
$ |
3,029 |
|
Insurance North American Agriculture |
|
|
321 |
|
|
|
330 |
|
|
|
385 |
|
|
|
433 |
|
Insurance Overseas General |
|
|
1,644 |
|
|
|
1,709 |
|
|
|
3,281 |
|
|
|
3,321 |
|
Global Reinsurance |
|
|
220 |
|
|
|
261 |
|
|
|
446 |
|
|
|
545 |
|
Life |
|
|
487 |
|
|
|
490 |
|
|
|
961 |
|
|
|
974 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
$ |
4,360 |
|
|
$ |
4,332 |
|
|
$ |
8,287 |
|
|
$ |
8,302 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income (loss) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Insurance North American P&C |
|
$ |
395 |
|
|
$ |
378 |
|
|
$ |
740 |
|
|
$ |
789 |
|
Insurance North American Agriculture |
|
|
15 |
|
|
|
19 |
|
|
|
50 |
|
|
|
(6 |
) |
Insurance Overseas General |
|
|
240 |
|
|
|
282 |
|
|
|
481 |
|
|
|
521 |
|
Global Reinsurance |
|
|
145 |
|
|
|
146 |
|
|
|
273 |
|
|
|
290 |
|
Life |
|
|
67 |
|
|
|
72 |
|
|
|
133 |
|
|
|
149 |
|
Corporate |
|
|
(74 |
) |
|
|
(72 |
) |
|
|
(144 |
) |
|
|
(141 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
$ |
788 |
|
|
$ |
825 |
|
|
$ |
1,533 |
|
|
$ |
1,602 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ACE®, ACE logo®, and ACE insured® are trademarks of ACE
Limited. |
|
12 |
Exhibit 99.2
|
Investor Contact Helen M. Wilson
Phone: (441) 299-9283 email:
investorrelations@acegroup.com |
This report is for informational purposes only. It should be read in conjunction with documents filed by ACE Limited with the Securities and
Exchange Commission, including the most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. |
Cautionary Statement Regarding Forward-Looking Statements:
|
Any forward-looking statements made in this financial supplement reflect ACEs current views with respect to future events and financial
performance and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements involve risks and uncertainties which may cause actual results to differ materially from as indicated by such
statements. For example, forward-looking statements related to financial performance including exposures, reserves and recoverables could be affected by the frequency of unpredictable catastrophic events, actual loss experience, uncertainties in the
reserving or settlement process, currency exchange fluctuations, new theories of liability, judicial, legislative, regulatory and other governmental developments, litigation tactics and developments, investigation developments and actual settlement
terms, the amount and timing of reinsurance receivable and credit developments among reinsurers. |
Our forward-looking statements could also be affected by competition, pricing and policy term trends, market acceptance, changes in demand, actual market developments, rating agency action, possible terrorism or the outbreak and
effects of war. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the dates on which they are made. We undertake no obligation to publicly update or revise any forward-looking statements,
whether as a result of new information, future events or otherwise. |
|
|
|
|
|
|
|
ACE Limited
Financial Supplement Table of Contents |
|
|
|
|
|
|
|
|
|
|
|
|
|
Page |
|
I. |
|
Financial Highlights |
|
|
|
|
|
|
- Consolidated Financial Highlights |
|
|
1 |
|
|
|
|
II. |
|
Consolidated Results |
|
|
|
|
|
|
- Consolidated ResultsConsecutive Quarters |
|
|
2 |
|
|
|
- Summary Consolidated Balance Sheets |
|
|
3 |
|
|
|
- Consolidated Premiums and Operating Income by Line of Business |
|
|
4 |
|
|
|
|
III. |
|
Global P&C Results |
|
|
|
|
|
|
- Global P&C ResultsConsecutive Quarters |
|
|
5 |
|
|
|
|
IV. |
|
Segment Results |
|
|
|
|
|
|
- InsuranceNorth AmericanFor Reference Only |
|
|
6 |
|
|
|
- InsuranceNorth American P&C |
|
|
7 |
|
|
|
- InsuranceNorth American Agriculture |
|
|
8 |
|
|
|
- InsuranceOverseas General |
|
|
9 |
|
|
|
- Global Reinsurance |
|
|
10 |
|
|
|
- Life |
|
|
11 |
|
|
|
|
V. |
|
Balance Sheet Details |
|
|
|
|
|
|
- Loss Reserve Rollforward |
|
|
12 |
|
|
|
- Reinsurance Recoverable Analysis |
|
|
13 |
|
|
|
- Investment Portfolio |
|
|
14 - 17 |
|
|
|
- Net Realized and Unrealized Gains (Losses) |
|
|
18 |
|
|
|
- Capital Structure |
|
|
19 |
|
|
|
- Computation of Basic and Diluted Earnings Per Share |
|
|
20 |
|
|
|
- Book Value and Book Value per Common Share |
|
|
21 |
|
|
|
|
VI. |
|
Other Disclosures |
|
|
|
|
|
|
- Non-GAAP Financial Measures |
|
|
22 - 24 |
|
|
|
- Glossary |
|
|
25 |
|
|
|
|
|
|
|
|
ACE Limited
Consolidated Financial Highlights
(in millions of U.S. dollars, except share, per share data, and ratios)
(Unaudited) |
|
|
Note: All dollar amounts in the Financial Supplement
are rounded. However, percent changes and ratios are calculated using whole dollars. Accordingly, calculations using rounded dollars may differ.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Constant $ |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Constant $ |
|
|
|
|
|
|
% Change |
|
|
|
|
|
% Change |
|
|
|
|
|
|
|
|
% Change |
|
|
|
|
|
% Change |
|
|
|
Three months ended June 30 |
|
|
2Q-15 vs. |
|
|
Constant $ |
|
|
2Q-15 vs. |
|
|
Six months ended June 30 |
|
|
YTD-15 vs. |
|
|
Constant $ |
|
|
YTD-15 vs. |
|
|
|
2015 |
|
|
2014 |
|
|
2Q-14 |
|
|
2014 (2) |
|
|
2Q-14 (2) |
|
|
2015 |
|
|
2014 |
|
|
YTD-14 |
|
|
2014 (2) |
|
|
YTD-14 (2) |
|
Gross premiums written (1) |
|
$ |
6,504 |
|
|
$ |
6,006 |
|
|
|
8.3 |
% |
|
$ |
5,718 |
|
|
|
13.7 |
% |
|
$ |
11,826 |
|
|
$ |
11,380 |
|
|
|
3.9 |
% |
|
$ |
10,873 |
|
|
|
8.8 |
% |
Net premiums written (1) |
|
$ |
4,784 |
|
|
$ |
4,559 |
|
|
|
4.9 |
% |
|
$ |
4,318 |
|
|
|
10.8 |
% |
|
$ |
8,860 |
|
|
$ |
8,744 |
|
|
|
1.3 |
% |
|
$ |
8,322 |
|
|
|
6.5 |
% |
P&C net premiums written (1) (3) |
|
$ |
4,284 |
|
|
$ |
4,061 |
|
|
|
5.5 |
% |
|
$ |
3,839 |
|
|
|
11.6 |
% |
|
$ |
7,869 |
|
|
$ |
7,752 |
|
|
|
1.5 |
% |
|
$ |
7,363 |
|
|
|
6.9 |
% |
Global P&C net premiums written (1) (3) |
|
$ |
3,905 |
|
|
$ |
3,673 |
|
|
|
6.4 |
% |
|
$ |
3,451 |
|
|
|
13.2 |
% |
|
$ |
7,402 |
|
|
$ |
7,170 |
|
|
|
3.2 |
% |
|
$ |
6,781 |
|
|
|
9.2 |
% |
Net premiums earned |
|
$ |
4,360 |
|
|
$ |
4,332 |
|
|
|
0.7 |
% |
|
$ |
4,093 |
|
|
|
6.5 |
% |
|
$ |
8,287 |
|
|
$ |
8,302 |
|
|
|
-0.2 |
% |
|
$ |
7,897 |
|
|
|
4.9 |
% |
Net investment income |
|
$ |
562 |
|
|
$ |
556 |
|
|
|
1.0 |
% |
|
$ |
545 |
|
|
|
3.1 |
% |
|
$ |
1,113 |
|
|
$ |
1,109 |
|
|
|
0.3 |
% |
|
$ |
1,091 |
|
|
|
2.0 |
% |
Operating income (1) |
|
$ |
788 |
|
|
$ |
825 |
|
|
|
-4.5 |
% |
|
$ |
796 |
|
|
|
-0.9 |
% |
|
$ |
1,533 |
|
|
$ |
1,602 |
|
|
|
-4.3 |
% |
|
$ |
1,553 |
|
|
|
-1.3 |
% |
Net income |
|
$ |
942 |
|
|
$ |
779 |
|
|
|
20.8 |
% |
|
|
|
|
|
|
|
|
|
$ |
1,623 |
|
|
$ |
1,513 |
|
|
|
7.2 |
% |
|
|
|
|
|
|
|
|
Comprehensive income |
|
$ |
397 |
|
|
$ |
1,348 |
|
|
|
-70.6 |
% |
|
|
|
|
|
|
|
|
|
$ |
1,039 |
|
|
$ |
2,456 |
|
|
|
-57.7 |
% |
|
|
|
|
|
|
|
|
Operating cash flow |
|
$ |
816 |
|
|
$ |
846 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
1,891 |
|
|
$ |
2,096 |
|
|
|
|
|
|
|
|
|
|
|
|
|
P&C combined ratio (3) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss and loss expense ratio |
|
|
58.9 |
% |
|
|
58.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
58.0 |
% |
|
|
58.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Underwriting and administrative expense ratio |
|
|
28.8 |
% |
|
|
29.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
30.0 |
% |
|
|
30.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Combined ratio |
|
|
87.7 |
% |
|
|
87.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
88.0 |
% |
|
|
88.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Operating return on equity (ROE) |
|
|
11.4 |
% |
|
|
11.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
11.0 |
% |
|
|
11.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
ROE |
|
|
12.7 |
% |
|
|
10.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
11.0 |
% |
|
|
10.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Operating effective tax rate (4) |
|
|
14.7 |
% |
|
|
13.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
14.2 |
% |
|
|
12.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Effective tax rate |
|
|
13.2 |
% |
|
|
14.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
13.9 |
% |
|
|
13.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income |
|
$ |
2.40 |
|
|
$ |
2.42 |
|
|
|
-0.8 |
% |
|
|
|
|
|
|
|
|
|
$ |
4.64 |
|
|
$ |
4.69 |
|
|
|
-1.1 |
% |
|
|
|
|
|
|
|
|
Net income |
|
$ |
2.86 |
|
|
$ |
2.28 |
|
|
|
25.4 |
% |
|
|
|
|
|
|
|
|
|
$ |
4.91 |
|
|
$ |
4.43 |
|
|
|
10.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% Change |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31 |
|
|
2Q-15 vs. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2014 |
|
|
4Q-14 |
|
Book value per common share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
91.27 |
|
|
|
|
|
|
|
|
|
|
$ |
90.02 |
|
|
|
1.4 |
% |
Book value per common share excluding foreign currency (5) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
92.31 |
|
|
|
|
|
|
|
|
|
|
$ |
90.02 |
|
|
|
2.5 |
% |
Tangible book value per common share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
72.84 |
|
|
|
|
|
|
|
|
|
|
$ |
72.61 |
|
|
|
0.3 |
% |
Tangible book value per common share excluding foreign currency (5) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
73.45 |
|
|
|
|
|
|
|
|
|
|
$ |
72.61 |
|
|
|
1.2 |
% |
Tangible book value per common share excluding acquisitions (6) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
74.30 |
|
|
|
|
|
|
|
|
|
|
$ |
72.61 |
|
|
|
2.3 |
% |
Tangible book value per common share excluding acquisitions and foreign currency (5)
(6) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
74.91 |
|
|
|
|
|
|
|
|
|
|
$ |
72.61 |
|
|
|
3.2 |
% |
Weighted average basic common shares outstanding |
|
|
325.5 |
|
|
|
337.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
326.8 |
|
|
|
338.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average diluted common shares outstanding |
|
|
328.7 |
|
|
|
341.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
330.2 |
|
|
|
341.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Debt plus trust preferred securities/ tangible capital |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
21.8 |
% |
|
|
20.0 |
% |
|
|
|
|
|
|
20.7 |
% |
|
|
|
|
(1) |
Included in Q2 2015 is gross premiums written of $428 million, net premiums written of $252 million, and operating income benefit of $15 million related to the transfer of the Firemans Fund in-force business at
the time of the transaction that is non-recurring in 2016. |
(2) |
Prior periods on a constant dollar basis. |
(3) |
See non-GAAP financial measures. |
(4) |
Operating effective tax rate is dependent upon the mix of earnings from different jurisdictions with various tax rates. A change in the geographic mix of earnings would change the effective tax rate. The increase in the
operating effective tax rate for the quarter was primarily due to a lower percentage of operating earnings being generated in lower tax paying jurisdictions. |
(5) |
For 2015, book value per common share and tangible book value per common share exclude the impact of foreign currency movement during the year. |
(6) |
For 2015, tangible book value per common share excludes the impact from goodwill and intangibles relating to the acquisition of the Firemans Fund high net worth personal lines insurance business in the United
States of $474 million. |
|
|
|
Financial Highlights |
|
Page 1 |
|
|
|
|
|
|
|
ACE Limited
Consolidated Results - Consecutive Quarters
(in millions of U.S. dollars, except ratios)
(Unaudited) |
|
|
ACE Limited Consolidated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
YTD |
|
|
YTD |
|
|
Full Year |
|
|
|
2Q-15 |
|
|
1Q-15 |
|
|
4Q-14 |
|
|
3Q-14 |
|
|
2Q-14 |
|
|
2015 |
|
|
2014 |
|
|
2014 |
|
Consolidated Results (Including Corporate) Excluding Life Segment
(1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross premiums written (2) |
|
$ |
5,975 |
|
|
$ |
4,800 |
|
|
$ |
5,193 |
|
|
$ |
5,736 |
|
|
$ |
5,480 |
|
|
$ |
10,775 |
|
|
$ |
10,332 |
|
|
$ |
21,261 |
|
Net premiums written (2) |
|
|
4,284 |
|
|
|
3,585 |
|
|
|
3,803 |
|
|
|
4,232 |
|
|
|
4,061 |
|
|
|
7,869 |
|
|
|
7,752 |
|
|
|
15,787 |
|
Net premiums earned |
|
|
3,873 |
|
|
|
3,453 |
|
|
|
3,871 |
|
|
|
4,265 |
|
|
|
3,842 |
|
|
|
7,326 |
|
|
|
7,328 |
|
|
|
15,464 |
|
Adjusted losses and loss expenses (1) |
|
|
2,282 |
|
|
|
1,970 |
|
|
|
2,269 |
|
|
|
2,494 |
|
|
|
2,234 |
|
|
|
4,252 |
|
|
|
4,246 |
|
|
|
9,009 |
|
Policy acquisition costs |
|
|
609 |
|
|
|
600 |
|
|
|
641 |
|
|
|
702 |
|
|
|
637 |
|
|
|
1,209 |
|
|
|
1,254 |
|
|
|
2,597 |
|
Administrative expenses |
|
|
504 |
|
|
|
481 |
|
|
|
517 |
|
|
|
483 |
|
|
|
493 |
|
|
|
985 |
|
|
|
960 |
|
|
|
1,960 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Underwriting income |
|
|
478 |
|
|
|
402 |
|
|
|
444 |
|
|
|
586 |
|
|
|
478 |
|
|
|
880 |
|
|
|
868 |
|
|
|
1,898 |
|
Net investment income |
|
|
496 |
|
|
|
485 |
|
|
|
508 |
|
|
|
497 |
|
|
|
490 |
|
|
|
981 |
|
|
|
979 |
|
|
|
1,984 |
|
Interest expense |
|
|
69 |
|
|
|
67 |
|
|
|
66 |
|
|
|
66 |
|
|
|
69 |
|
|
|
136 |
|
|
|
137 |
|
|
|
269 |
|
Other income (expense) - operating (3) |
|
|
(56 |
) |
|
|
(30 |
) |
|
|
(25 |
) |
|
|
(29 |
) |
|
|
(26 |
) |
|
|
(86 |
) |
|
|
(49 |
) |
|
|
(103 |
) |
Income tax expense |
|
|
128 |
|
|
|
111 |
|
|
|
110 |
|
|
|
169 |
|
|
|
120 |
|
|
|
239 |
|
|
|
208 |
|
|
|
487 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income (including Corporate) excluding Life segment (2) |
|
|
721 |
|
|
|
679 |
|
|
|
751 |
|
|
|
819 |
|
|
|
753 |
|
|
|
1,400 |
|
|
|
1,453 |
|
|
|
3,023 |
|
Life segment operating income |
|
|
67 |
|
|
|
66 |
|
|
|
76 |
|
|
|
72 |
|
|
|
72 |
|
|
|
133 |
|
|
|
149 |
|
|
|
297 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated operating income (2) |
|
|
788 |
|
|
|
745 |
|
|
|
827 |
|
|
|
891 |
|
|
|
825 |
|
|
|
1,533 |
|
|
|
1,602 |
|
|
|
3,320 |
|
Adjusted net realized gains (losses) (1) |
|
|
128 |
|
|
|
(89 |
) |
|
|
(210 |
) |
|
|
(165 |
) |
|
|
(81 |
) |
|
|
39 |
|
|
|
(183 |
) |
|
|
(558 |
) |
Net realized gains (losses) related to unconsolidated entities |
|
|
33 |
|
|
|
26 |
|
|
|
49 |
|
|
|
55 |
|
|
|
36 |
|
|
|
59 |
|
|
|
87 |
|
|
|
191 |
|
Income tax expense (benefit) on adjusted net realized gains (losses) |
|
|
7 |
|
|
|
1 |
|
|
|
111 |
|
|
|
(4 |
) |
|
|
1 |
|
|
|
8 |
|
|
|
(7 |
) |
|
|
100 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated net income |
|
$ |
942 |
|
|
$ |
681 |
|
|
$ |
555 |
|
|
$ |
785 |
|
|
$ |
779 |
|
|
$ |
1,623 |
|
|
$ |
1,513 |
|
|
$ |
2,853 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% Change versus prior year period (1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net premiums written as reported |
|
|
5.5 |
% |
|
|
-2.9 |
% |
|
|
2.4 |
% |
|
|
2.2 |
% |
|
|
4.0 |
% |
|
|
1.5 |
% |
|
|
7.7 |
% |
|
|
4.9 |
% |
Net premiums earned as reported |
|
|
0.8 |
% |
|
|
-1.0 |
% |
|
|
-0.3 |
% |
|
|
2.9 |
% |
|
|
7.1 |
% |
|
|
0.0 |
% |
|
|
9.6 |
% |
|
|
5.1 |
% |
Net premiums written constant $ |
|
|
11.6 |
% |
|
|
1.7 |
% |
|
|
5.0 |
% |
|
|
1.7 |
% |
|
|
4.5 |
% |
|
|
6.9 |
% |
|
|
8.7 |
% |
|
|
5.9 |
% |
Net premiums earned constant $ |
|
|
7.0 |
% |
|
|
3.5 |
% |
|
|
2.1 |
% |
|
|
2.5 |
% |
|
|
7.4 |
% |
|
|
5.4 |
% |
|
|
10.8 |
% |
|
|
6.2 |
% |
Other ratios |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net premiums written/gross premiums written (1) |
|
|
72 |
% |
|
|
75 |
% |
|
|
73 |
% |
|
|
74 |
% |
|
|
74 |
% |
|
|
73 |
% |
|
|
75 |
% |
|
|
74 |
% |
Operating effective tax rate |
|
|
14.7 |
% |
|
|
13.7 |
% |
|
|
12.7 |
% |
|
|
16.9 |
% |
|
|
13.7 |
% |
|
|
14.2 |
% |
|
|
12.7 |
% |
|
|
13.9 |
% |
P&C combined ratio (1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss and loss expense ratio |
|
|
58.9 |
% |
|
|
57.1 |
% |
|
|
58.6 |
% |
|
|
58.5 |
% |
|
|
58.2 |
% |
|
|
58.0 |
% |
|
|
58.0 |
% |
|
|
58.3 |
% |
Policy acquisition cost ratio |
|
|
15.7 |
% |
|
|
17.4 |
% |
|
|
16.6 |
% |
|
|
16.5 |
% |
|
|
16.6 |
% |
|
|
16.5 |
% |
|
|
17.1 |
% |
|
|
16.8 |
% |
Administrative expense ratio |
|
|
13.1 |
% |
|
|
13.9 |
% |
|
|
13.3 |
% |
|
|
11.3 |
% |
|
|
12.7 |
% |
|
|
13.5 |
% |
|
|
13.1 |
% |
|
|
12.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Combined ratio |
|
|
87.7 |
% |
|
|
88.4 |
% |
|
|
88.5 |
% |
|
|
86.3 |
% |
|
|
87.5 |
% |
|
|
88.0 |
% |
|
|
88.2 |
% |
|
|
87.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Combined ratio excluding catastrophe losses and PPD |
|
|
88.4 |
% |
|
|
89.3 |
% |
|
|
89.5 |
% |
|
|
89.8 |
% |
|
|
88.7 |
% |
|
|
88.8 |
% |
|
|
88.8 |
% |
|
|
89.3 |
% |
P&C expense ratio |
|
|
28.8 |
% |
|
|
31.3 |
% |
|
|
29.9 |
% |
|
|
27.8 |
% |
|
|
29.3 |
% |
|
|
30.0 |
% |
|
|
30.2 |
% |
|
|
29.4 |
% |
P&C expense ratio excluding A&H |
|
|
25.5 |
% |
|
|
27.9 |
% |
|
|
26.7 |
% |
|
|
24.3 |
% |
|
|
26.0 |
% |
|
|
26.6 |
% |
|
|
26.7 |
% |
|
|
26.0 |
% |
Catastrophe reinstatement premiums collected - pre-tax |
|
$ |
|
|
|
$ |
|
|
|
$ |
2 |
|
|
$ |
1 |
|
|
$ |
|
|
|
$ |
|
|
|
$ |
|
|
|
$ |
3 |
|
Catastrophe losses - pre-tax |
|
$ |
124 |
|
|
$ |
51 |
|
|
$ |
71 |
|
|
$ |
87 |
|
|
$ |
80 |
|
|
$ |
175 |
|
|
$ |
133 |
|
|
$ |
291 |
|
Favorable prior period development (PPD) - pre-tax |
|
$ |
(153 |
) |
|
$ |
(83 |
) |
|
$ |
(107 |
) |
|
$ |
(232 |
) |
|
$ |
(126 |
) |
|
$ |
(236 |
) |
|
$ |
(188 |
) |
|
$ |
(527 |
) |
Loss and loss expense ratio excluding catastrophe losses and PPD |
|
|
59.7 |
% |
|
|
58.1 |
% |
|
|
59.6 |
% |
|
|
62.2 |
% |
|
|
59.4 |
% |
|
|
58.9 |
% |
|
|
58.5 |
% |
|
|
59.8 |
% |
(1) |
See non-GAAP financial measures. |
(2) |
Included in Q2 2015 is gross premiums written of $428 million, net premiums written of $252 million, and operating income benefit of $15 million related to the transfer of the Firemans Fund in-force business at
the time of the transaction that is non-recurring in 2016. |
(3) |
Excludes portion of net realized investment gains and losses related to unconsolidated entities. |
|
|
|
Consolidated Results |
|
Page 2 |
|
|
|
|
|
|
|
ACE Limited
Summary Consolidated Balance Sheets
(in millions of U.S. dollars, except per share data)
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30 |
|
|
March 31 |
|
|
December 31 |
|
|
|
2015 |
|
|
2015 |
|
|
2014 |
|
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
Fixed maturities available for sale, at fair value |
|
$ |
48,701 |
|
|
$ |
50,410 |
|
|
$ |
49,395 |
|
Fixed maturities held to maturity, at amortized cost |
|
|
8,676 |
|
|
|
6,982 |
|
|
|
7,331 |
|
Equity securities, at fair value |
|
|
498 |
|
|
|
536 |
|
|
|
510 |
|
Short-term investments, at fair value |
|
|
2,062 |
|
|
|
2,536 |
|
|
|
2,322 |
|
Other investments |
|
|
3,328 |
|
|
|
3,430 |
|
|
|
3,346 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total investments |
|
|
63,265 |
|
|
|
63,894 |
|
|
|
62,904 |
|
Cash |
|
|
790 |
|
|
|
948 |
|
|
|
655 |
|
Securities lending collateral |
|
|
1,080 |
|
|
|
1,033 |
|
|
|
1,330 |
|
Insurance and reinsurance balances receivable |
|
|
5,757 |
|
|
|
5,026 |
|
|
|
5,426 |
|
Reinsurance recoverable on losses and loss expenses |
|
|
11,775 |
|
|
|
11,588 |
|
|
|
11,992 |
|
Deferred policy acquisition costs |
|
|
2,806 |
|
|
|
2,683 |
|
|
|
2,601 |
|
Value of business acquired |
|
|
434 |
|
|
|
440 |
|
|
|
466 |
|
Prepaid reinsurance premiums |
|
|
2,238 |
|
|
|
1,981 |
|
|
|
2,026 |
|
Goodwill and other intangible assets |
|
|
5,969 |
|
|
|
5,516 |
|
|
|
5,724 |
|
Deferred tax assets |
|
|
285 |
|
|
|
224 |
|
|
|
295 |
|
Investments in partially-owned insurance companies |
|
|
638 |
|
|
|
590 |
|
|
|
504 |
|
Other assets |
|
|
4,803 |
|
|
|
4,475 |
|
|
|
4,325 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
99,840 |
|
|
$ |
98,398 |
|
|
$ |
98,248 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
Unpaid losses and loss expenses |
|
$ |
38,230 |
|
|
$ |
37,326 |
|
|
$ |
38,315 |
|
Unearned premiums |
|
|
8,879 |
|
|
|
8,182 |
|
|
|
8,222 |
|
Future policy benefits |
|
|
4,835 |
|
|
|
4,744 |
|
|
|
4,754 |
|
Insurance and reinsurance balances payable |
|
|
4,602 |
|
|
|
4,198 |
|
|
|
4,095 |
|
Securities lending payable |
|
|
1,081 |
|
|
|
1,034 |
|
|
|
1,331 |
|
Accounts payable, accrued expenses, and other liabilities |
|
|
6,090 |
|
|
|
6,194 |
|
|
|
5,726 |
|
Short-term debt |
|
|
2,102 |
|
|
|
2,552 |
|
|
|
2,552 |
|
Long-term debt |
|
|
4,157 |
|
|
|
4,157 |
|
|
|
3,357 |
|
Trust preferred securities |
|
|
309 |
|
|
|
309 |
|
|
|
309 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities |
|
|
70,285 |
|
|
|
68,696 |
|
|
|
68,661 |
|
Shareholders equity |
|
|
|
|
|
|
|
|
|
|
|
|
Total shareholders equity, excl. AOCI |
|
|
28,948 |
|
|
|
28,550 |
|
|
|
28,396 |
|
Accumulated other comprehensive income (AOCI) |
|
|
607 |
|
|
|
1,152 |
|
|
|
1,191 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total shareholders equity |
|
|
29,555 |
|
|
|
29,702 |
|
|
|
29,587 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and shareholders equity |
|
$ |
99,840 |
|
|
$ |
98,398 |
|
|
$ |
98,248 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Book value per common share |
|
$ |
91.27 |
|
|
$ |
90.81 |
|
|
$ |
90.02 |
|
% change over prior quarter |
|
|
0.5 |
% |
|
|
0.9 |
% |
|
|
-0.4 |
% |
Tangible book value per common share |
|
$ |
72.84 |
|
|
$ |
73.94 |
|
|
$ |
72.61 |
|
% change over prior quarter |
|
|
-1.5 |
% |
|
|
1.8 |
% |
|
|
-1.9 |
% |
|
|
|
|
|
|
|
ACE Limited
Consolidated Premiums and Operating Income by Line of Business
(in millions of U.S. dollars)
(Unaudited) |
|
|
ACE Limited Consolidated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Constant $ |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Constant $ |
|
|
|
|
|
|
|
|
|
% Change |
|
|
|
|
|
% Change |
|
|
|
|
|
|
|
|
% Change |
|
|
Constant $ |
|
|
% Change |
|
|
|
|
|
|
|
|
|
2Q-15 vs. |
|
|
Constant $ |
|
|
2Q-15 vs. |
|
|
YTD |
|
|
YTD |
|
|
YTD-15 vs. |
|
|
YTD-15 vs. |
|
|
YTD-15 vs. |
|
|
|
2Q-15 |
|
|
2Q-14 |
|
|
2Q-14 |
|
|
2Q-14 (2) |
|
|
2Q-14 (2) |
|
|
2015 |
|
|
2014 |
|
|
YTD-14 |
|
|
YTD-14 (2) |
|
|
YTD-14 (2) |
|
Net premiums written |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property and all other |
|
$ |
1,688 |
|
|
$ |
1,465 |
|
|
|
15.2 |
% |
|
|
|
|
|
|
|
|
|
$ |
3,068 |
|
|
$ |
2,837 |
|
|
|
8.2 |
% |
|
|
|
|
|
|
|
|
Casualty |
|
|
1,563 |
|
|
|
1,494 |
|
|
|
4.7 |
% |
|
|
|
|
|
|
|
|
|
|
3,042 |
|
|
|
2,949 |
|
|
|
3.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subtotal |
|
|
3,251 |
|
|
|
2,959 |
|
|
|
9.9 |
% |
|
$ |
2,817 |
|
|
|
15.4 |
% |
|
|
6,110 |
|
|
|
5,786 |
|
|
|
5.6 |
% |
|
$ |
5,532 |
|
|
|
10.4 |
% |
Agriculture |
|
|
379 |
|
|
|
388 |
|
|
|
-2.4 |
% |
|
|
388 |
|
|
|
-2.4 |
% |
|
|
467 |
|
|
|
582 |
|
|
|
-19.8 |
% |
|
|
582 |
|
|
|
-19.8 |
% |
Personal accident (A&H) (1) |
|
|
909 |
|
|
|
961 |
|
|
|
-5.2 |
% |
|
|
873 |
|
|
|
4.2 |
% |
|
|
1,799 |
|
|
|
1,878 |
|
|
|
-4.2 |
% |
|
|
1,731 |
|
|
|
3.9 |
% |
Life |
|
|
245 |
|
|
|
251 |
|
|
|
-2.7 |
% |
|
|
240 |
|
|
|
2.4 |
% |
|
|
484 |
|
|
|
498 |
|
|
|
-2.9 |
% |
|
|
477 |
|
|
|
1.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total consolidated |
|
$ |
4,784 |
|
|
$ |
4,559 |
|
|
|
4.9 |
% |
|
$ |
4,318 |
|
|
|
10.8 |
% |
|
$ |
8,860 |
|
|
$ |
8,744 |
|
|
|
1.3 |
% |
|
$ |
8,322 |
|
|
|
6.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% of Total Consolidated |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property and all other |
|
|
35 |
% |
|
|
32 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
35 |
% |
|
|
32 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Casualty |
|
|
33 |
% |
|
|
33 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
35 |
% |
|
|
34 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subtotal |
|
|
68 |
% |
|
|
65 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
70 |
% |
|
|
66 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Agriculture |
|
|
8 |
% |
|
|
8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
5 |
% |
|
|
7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Personal accident (A&H) (1) |
|
|
19 |
% |
|
|
21 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
20 |
% |
|
|
21 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Life |
|
|
5 |
% |
|
|
6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
5 |
% |
|
|
6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total consolidated |
|
|
100 |
% |
|
|
100 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
100 |
% |
|
|
100 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net premiums earned |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property and all other |
|
$ |
1,338 |
|
|
$ |
1,282 |
|
|
|
4.5 |
% |
|
|
|
|
|
|
|
|
|
$ |
2,593 |
|
|
$ |
2,534 |
|
|
|
2.4 |
% |
|
|
|
|
|
|
|
|
Casualty |
|
|
1,588 |
|
|
|
1,542 |
|
|
|
3.0 |
% |
|
|
|
|
|
|
|
|
|
|
3,094 |
|
|
|
3,022 |
|
|
|
2.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subtotal |
|
|
2,926 |
|
|
|
2,824 |
|
|
|
3.7 |
% |
|
$ |
2,681 |
|
|
|
9.2 |
% |
|
|
5,687 |
|
|
|
5,556 |
|
|
|
2.4 |
% |
|
$ |
5,315 |
|
|
|
7.0 |
% |
Agriculture |
|
|
321 |
|
|
|
330 |
|
|
|
-2.9 |
% |
|
|
330 |
|
|
|
-2.9 |
% |
|
|
385 |
|
|
|
433 |
|
|
|
-11.0 |
% |
|
|
433 |
|
|
|
-11.0 |
% |
Personal accident (A&H) (1) |
|
|
882 |
|
|
|
934 |
|
|
|
-5.6 |
% |
|
|
850 |
|
|
|
3.8 |
% |
|
|
1,761 |
|
|
|
1,828 |
|
|
|
-3.7 |
% |
|
|
1,685 |
|
|
|
4.5 |
% |
Life |
|
|
231 |
|
|
|
244 |
|
|
|
-5.1 |
% |
|
|
232 |
|
|
|
-0.1 |
% |
|
|
454 |
|
|
|
485 |
|
|
|
-6.3 |
% |
|
|
464 |
|
|
|
-2.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total consolidated |
|
$ |
4,360 |
|
|
$ |
4,332 |
|
|
|
0.7 |
% |
|
$ |
4,093 |
|
|
|
6.5 |
% |
|
$ |
8,287 |
|
|
$ |
8,302 |
|
|
|
-0.2 |
% |
|
$ |
7,897 |
|
|
|
4.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% of Total Consolidated |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property and all other |
|
|
31 |
% |
|
|
29 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
31 |
% |
|
|
31 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Casualty |
|
|
37 |
% |
|
|
36 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
38 |
% |
|
|
36 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subtotal |
|
|
68 |
% |
|
|
65 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
69 |
% |
|
|
67 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Agriculture |
|
|
7 |
% |
|
|
7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
5 |
% |
|
|
5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Personal accident (A&H) (1) |
|
|
20 |
% |
|
|
22 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
21 |
% |
|
|
22 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Life |
|
|
5 |
% |
|
|
6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
5 |
% |
|
|
6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total consolidated |
|
|
100 |
% |
|
|
100 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
100 |
% |
|
|
100 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income (loss), after-tax |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property, casualty, and all other |
|
$ |
616 |
|
|
$ |
648 |
|
|
|
-5.1 |
% |
|
$ |
632 |
|
|
|
-2.5 |
% |
|
$ |
1,177 |
|
|
$ |
1,293 |
|
|
|
-9.1 |
% |
|
$ |
1,265 |
|
|
|
-7.0 |
% |
Agriculture |
|
|
15 |
|
|
|
19 |
|
|
|
-21.9 |
% |
|
|
19 |
|
|
|
-21.9 |
% |
|
|
50 |
|
|
|
(6 |
) |
|
|
NM |
|
|
|
(6 |
) |
|
|
NM |
|
Personal accident (A&H) (1) |
|
|
122 |
|
|
|
124 |
|
|
|
-0.9 |
% |
|
|
112 |
|
|
|
9.9 |
% |
|
|
235 |
|
|
|
238 |
|
|
|
-1.3 |
% |
|
|
218 |
|
|
|
8.0 |
% |
Life |
|
|
35 |
|
|
|
34 |
|
|
|
5.1 |
% |
|
|
33 |
|
|
|
5.3 |
% |
|
|
71 |
|
|
|
77 |
|
|
|
-7.0 |
% |
|
|
76 |
|
|
|
-6.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total consolidated |
|
$ |
788 |
|
|
$ |
825 |
|
|
|
-4.5 |
% |
|
$ |
796 |
|
|
|
-0.9 |
% |
|
$ |
1,533 |
|
|
$ |
1,602 |
|
|
|
-4.3 |
% |
|
$ |
1,553 |
|
|
|
-1.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% of Total Consolidated |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property, casualty, and all other |
|
|
79 |
% |
|
|
79 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
77 |
% |
|
|
80 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Agriculture |
|
|
2 |
% |
|
|
2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3 |
% |
|
|
0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Personal accident (A&H) (1) |
|
|
15 |
% |
|
|
15 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
15 |
% |
|
|
15 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Life |
|
|
4 |
% |
|
|
4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
5 |
% |
|
|
5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total consolidated |
|
|
100 |
% |
|
|
100 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
100 |
% |
|
|
100 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
For purposes of this schedule only, A&H results from our Combined North American and International businesses, normally included in the Life and Insurance Overseas General segments, respectively, are included
in the personal accident (A&H) line items above. |
(2) |
Prior periods on a constant-dollar basis. |
|
|
|
|
|
|
|
ACE Limited
Global P&C Results - Consecutive Quarters
(in millions of U.S. dollars, except ratios)
(Unaudited) |
|
|
Global P&C includes the companys Insurance
North American P&C segment (refer to page 7), Insurance Overseas General segment (refer to page 9), Global Reinsurance segment (refer to page 10), and Corporate (not separately disclosed in the Financial Supplement). Global P&C
excludes the Insurance North American Agriculture segment.
Global P&C (Including Corporate)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
YTD |
|
|
YTD |
|
|
Full Year |
|
|
|
2Q-15 |
|
|
1Q-15 |
|
|
4Q-14 |
|
|
3Q-14 |
|
|
2Q-14 |
|
|
2015 |
|
|
2014 |
|
|
2014 |
|
Gross premiums written (1) |
|
$ |
5,409 |
|
|
$ |
4,672 |
|
|
$ |
4,891 |
|
|
$ |
4,495 |
|
|
$ |
4,879 |
|
|
$ |
10,081 |
|
|
$ |
9,497 |
|
|
$ |
18,883 |
|
Net premiums written (1) |
|
|
3,905 |
|
|
|
3,497 |
|
|
|
3,559 |
|
|
|
3,468 |
|
|
|
3,673 |
|
|
|
7,402 |
|
|
|
7,170 |
|
|
|
14,197 |
|
Net premiums earned |
|
|
3,552 |
|
|
|
3,389 |
|
|
|
3,544 |
|
|
|
3,499 |
|
|
|
3,512 |
|
|
|
6,941 |
|
|
|
6,895 |
|
|
|
13,938 |
|
Losses and loss expenses |
|
|
2,009 |
|
|
|
1,948 |
|
|
|
2,017 |
|
|
|
1,853 |
|
|
|
1,955 |
|
|
|
3,957 |
|
|
|
3,839 |
|
|
|
7,709 |
|
Policy acquisition costs |
|
|
586 |
|
|
|
604 |
|
|
|
629 |
|
|
|
661 |
|
|
|
614 |
|
|
|
1,190 |
|
|
|
1,226 |
|
|
|
2,516 |
|
Administrative expenses |
|
|
500 |
|
|
|
482 |
|
|
|
513 |
|
|
|
480 |
|
|
|
492 |
|
|
|
982 |
|
|
|
958 |
|
|
|
1,951 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Underwriting income |
|
|
457 |
|
|
|
355 |
|
|
|
385 |
|
|
|
505 |
|
|
|
451 |
|
|
|
812 |
|
|
|
872 |
|
|
|
1,762 |
|
Net investment income |
|
|
490 |
|
|
|
479 |
|
|
|
501 |
|
|
|
491 |
|
|
|
484 |
|
|
|
969 |
|
|
|
966 |
|
|
|
1,958 |
|
Interest expense |
|
|
69 |
|
|
|
67 |
|
|
|
66 |
|
|
|
66 |
|
|
|
69 |
|
|
|
136 |
|
|
|
137 |
|
|
|
269 |
|
Other income (expense)operating (2) |
|
|
(48 |
) |
|
|
(22 |
) |
|
|
(16 |
) |
|
|
(22 |
) |
|
|
(17 |
) |
|
|
(70 |
) |
|
|
(32 |
) |
|
|
(70 |
) |
Income tax expense |
|
|
124 |
|
|
|
101 |
|
|
|
98 |
|
|
|
146 |
|
|
|
115 |
|
|
|
225 |
|
|
|
210 |
|
|
|
454 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Global P&C operating income (1) |
|
|
706 |
|
|
|
644 |
|
|
|
706 |
|
|
|
762 |
|
|
|
734 |
|
|
|
1,350 |
|
|
|
1,459 |
|
|
|
2,927 |
|
Net realized gains (losses) |
|
|
25 |
|
|
|
(30 |
) |
|
|
(67 |
) |
|
|
(76 |
) |
|
|
(9 |
) |
|
|
(5 |
) |
|
|
(35 |
) |
|
|
(178 |
) |
Net realized gains (losses) related to unconsolidated entities |
|
|
16 |
|
|
|
12 |
|
|
|
43 |
|
|
|
51 |
|
|
|
38 |
|
|
|
28 |
|
|
|
91 |
|
|
|
185 |
|
Income tax expense (benefit) on net realized gains (losses) |
|
|
5 |
|
|
|
|
|
|
|
110 |
|
|
|
(5 |
) |
|
|
1 |
|
|
|
5 |
|
|
|
(4 |
) |
|
|
101 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Global P&C net income |
|
$ |
742 |
|
|
$ |
626 |
|
|
$ |
572 |
|
|
$ |
742 |
|
|
$ |
762 |
|
|
$ |
1,368 |
|
|
$ |
1,519 |
|
|
$ |
2,833 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% Change versus prior year period |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net premiums written as reported |
|
|
6.4 |
% |
|
|
0.0 |
% |
|
|
3.0 |
% |
|
|
4.0 |
% |
|
|
6.4 |
% |
|
|
3.2 |
% |
|
|
8.1 |
% |
|
|
5.7 |
% |
Net premiums earned as reported |
|
|
1.2 |
% |
|
|
0.1 |
% |
|
|
2.6 |
% |
|
|
6.2 |
% |
|
|
8.5 |
% |
|
|
0.7 |
% |
|
|
9.8 |
% |
|
|
7.0 |
% |
Net premiums written constant $ |
|
|
13.2 |
% |
|
|
5.0 |
% |
|
|
5.8 |
% |
|
|
3.4 |
% |
|
|
7.0 |
% |
|
|
9.2 |
% |
|
|
9.2 |
% |
|
|
6.9 |
% |
Net premiums earned constant $ |
|
|
8.0 |
% |
|
|
4.8 |
% |
|
|
5.4 |
% |
|
|
5.7 |
% |
|
|
8.8 |
% |
|
|
6.4 |
% |
|
|
11.0 |
% |
|
|
8.2 |
% |
Other ratios |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net premiums written/gross premiums written |
|
|
72 |
% |
|
|
75 |
% |
|
|
73 |
% |
|
|
77 |
% |
|
|
75 |
% |
|
|
73 |
% |
|
|
75 |
% |
|
|
75 |
% |
Combined ratio |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss and loss expense ratio |
|
|
56.5 |
% |
|
|
57.5 |
% |
|
|
56.9 |
% |
|
|
52.9 |
% |
|
|
55.7 |
% |
|
|
57.0 |
% |
|
|
55.7 |
% |
|
|
55.3 |
% |
Policy acquisition cost ratio |
|
|
16.5 |
% |
|
|
17.8 |
% |
|
|
17.8 |
% |
|
|
18.9 |
% |
|
|
17.5 |
% |
|
|
17.1 |
% |
|
|
17.8 |
% |
|
|
18.0 |
% |
Administrative expense ratio |
|
|
14.1 |
% |
|
|
14.2 |
% |
|
|
14.4 |
% |
|
|
13.8 |
% |
|
|
13.9 |
% |
|
|
14.2 |
% |
|
|
13.9 |
% |
|
|
14.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Combined ratio |
|
|
87.1 |
% |
|
|
89.5 |
% |
|
|
89.1 |
% |
|
|
85.6 |
% |
|
|
87.1 |
% |
|
|
88.3 |
% |
|
|
87.4 |
% |
|
|
87.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Combined ratio excluding catastrophe losses and PPD |
|
|
88.2 |
% |
|
|
89.5 |
% |
|
|
90.2 |
% |
|
|
89.8 |
% |
|
|
88.7 |
% |
|
|
88.8 |
% |
|
|
88.8 |
% |
|
|
89.4 |
% |
Expense ratio |
|
|
30.6 |
% |
|
|
32.0 |
% |
|
|
32.2 |
% |
|
|
32.7 |
% |
|
|
31.4 |
% |
|
|
31.3 |
% |
|
|
31.7 |
% |
|
|
32.1 |
% |
Expense ratio excluding A&H |
|
|
27.4 |
% |
|
|
28.7 |
% |
|
|
29.2 |
% |
|
|
29.3 |
% |
|
|
28.2 |
% |
|
|
28.0 |
% |
|
|
28.3 |
% |
|
|
28.8 |
% |
Catastrophe reinstatement premiums collectedpre-tax |
|
$ |
|
|
|
$ |
|
|
|
$ |
2 |
|
|
$ |
1 |
|
|
$ |
|
|
|
$ |
|
|
|
$ |
|
|
|
$ |
3 |
|
Catastrophe lossespre-tax |
|
$ |
117 |
|
|
$ |
50 |
|
|
$ |
70 |
|
|
$ |
85 |
|
|
$ |
71 |
|
|
$ |
167 |
|
|
$ |
123 |
|
|
$ |
278 |
|
Favorable prior period development (PPD)pre-tax |
|
$ |
(153 |
) |
|
$ |
(50 |
) |
|
$ |
(106 |
) |
|
$ |
(229 |
) |
|
$ |
(126 |
) |
|
$ |
(203 |
) |
|
$ |
(226 |
) |
|
$ |
(561 |
) |
Loss and loss expense ratio excluding catastrophe losses and PPD |
|
|
57.6 |
% |
|
|
57.6 |
% |
|
|
57.9 |
% |
|
|
57.5 |
% |
|
|
57.3 |
% |
|
|
57.6 |
% |
|
|
57.2 |
% |
|
|
57.5 |
% |
(1) |
Included in Q2 2015 is gross premiums written of $428 million, net premiums written of $252 million, and operating income benefit of $15 million related to the transfer of the Firemans Fund in-force business at
the time of the transaction that is non-recurring in 2016. |
(2) |
Excludes portion of net realized investment gains and losses related to unconsolidated entities. |
|
|
|
|
|
|
|
ACE Limited
Insurance - North American
(in millions of U.S. dollars, except ratios)
(Unaudited) |
|
|
The table below combines the companys
Insurance North American P&C segment (refer to page 7) and Insurance North American Agriculture segment (refer to page 8) into total Insurance North American business presentation for reference purposes only.
Insurance - North American
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
YTD |
|
|
YTD |
|
|
Full Year |
|
|
|
2Q-15 |
|
|
1Q-15 |
|
|
4Q-14 |
|
|
3Q-14 |
|
|
2Q-14 |
|
|
2015 |
|
|
2014 |
|
|
2014 |
|
Gross premiums written |
|
$ |
3,471 |
|
|
$ |
2,253 |
|
|
$ |
2,841 |
|
|
$ |
3,367 |
|
|
$ |
2,948 |
|
|
$ |
5,724 |
|
|
$ |
5,206 |
|
|
$ |
11,414 |
|
Net premiums written |
|
|
2,354 |
|
|
|
1,518 |
|
|
|
1,913 |
|
|
|
2,305 |
|
|
|
2,023 |
|
|
|
3,872 |
|
|
|
3,635 |
|
|
|
7,853 |
|
Net premiums earned |
|
|
2,009 |
|
|
|
1,590 |
|
|
|
1,887 |
|
|
|
2,284 |
|
|
|
1,872 |
|
|
|
3,599 |
|
|
|
3,462 |
|
|
|
7,633 |
|
Losses and loss expenses (1) |
|
|
1,393 |
|
|
|
1,057 |
|
|
|
1,329 |
|
|
|
1,694 |
|
|
|
1,295 |
|
|
|
2,450 |
|
|
|
2,363 |
|
|
|
5,386 |
|
Policy acquisition costs |
|
|
153 |
|
|
|
157 |
|
|
|
166 |
|
|
|
210 |
|
|
|
175 |
|
|
|
310 |
|
|
|
339 |
|
|
|
715 |
|
Administrative expenses |
|
|
193 |
|
|
|
170 |
|
|
|
181 |
|
|
|
168 |
|
|
|
176 |
|
|
|
363 |
|
|
|
338 |
|
|
|
687 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Underwriting income |
|
|
270 |
|
|
|
206 |
|
|
|
211 |
|
|
|
212 |
|
|
|
226 |
|
|
|
476 |
|
|
|
422 |
|
|
|
845 |
|
Net investment income |
|
|
275 |
|
|
|
269 |
|
|
|
280 |
|
|
|
283 |
|
|
|
271 |
|
|
|
544 |
|
|
|
548 |
|
|
|
1,111 |
|
Interest expense |
|
|
2 |
|
|
|
2 |
|
|
|
2 |
|
|
|
2 |
|
|
|
2 |
|
|
|
4 |
|
|
|
5 |
|
|
|
9 |
|
Other income (expense)operating |
|
|
(41 |
) |
|
|
(5 |
) |
|
|
(2 |
) |
|
|
(8 |
) |
|
|
(4 |
) |
|
|
(46 |
) |
|
|
(12 |
) |
|
|
(22 |
) |
Income tax expense |
|
|
92 |
|
|
|
88 |
|
|
|
70 |
|
|
|
91 |
|
|
|
94 |
|
|
|
180 |
|
|
|
170 |
|
|
|
331 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income |
|
|
410 |
|
|
|
380 |
|
|
|
417 |
|
|
|
394 |
|
|
|
397 |
|
|
|
790 |
|
|
|
783 |
|
|
|
1,594 |
|
Net realized gains (losses) (1) |
|
|
|
|
|
|
(6 |
) |
|
|
(39 |
) |
|
|
(5 |
) |
|
|
(11 |
) |
|
|
(6 |
) |
|
|
(20 |
) |
|
|
(64 |
) |
Net realized gains (losses) related to unconsolidated entities |
|
|
10 |
|
|
|
4 |
|
|
|
19 |
|
|
|
32 |
|
|
|
19 |
|
|
|
14 |
|
|
|
39 |
|
|
|
90 |
|
Income tax expense on net realized gains (losses) |
|
|
1 |
|
|
|
2 |
|
|
|
1 |
|
|
|
5 |
|
|
|
2 |
|
|
|
3 |
|
|
|
2 |
|
|
|
8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
$ |
419 |
|
|
$ |
376 |
|
|
$ |
396 |
|
|
$ |
416 |
|
|
$ |
403 |
|
|
$ |
795 |
|
|
$ |
800 |
|
|
$ |
1,612 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Combined ratio |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss and loss expense ratio |
|
|
69.3 |
% |
|
|
66.5 |
% |
|
|
70.4 |
% |
|
|
74.1 |
% |
|
|
69.2 |
% |
|
|
68.1 |
% |
|
|
68.3 |
% |
|
|
70.6 |
% |
Policy acquisition cost ratio |
|
|
7.6 |
% |
|
|
9.8 |
% |
|
|
8.8 |
% |
|
|
9.2 |
% |
|
|
9.3 |
% |
|
|
8.6 |
% |
|
|
9.8 |
% |
|
|
9.4 |
% |
Administrative expense ratio |
|
|
9.7 |
% |
|
|
10.7 |
% |
|
|
9.6 |
% |
|
|
7.4 |
% |
|
|
9.4 |
% |
|
|
10.1 |
% |
|
|
9.7 |
% |
|
|
8.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Combined ratio |
|
|
86.6 |
% |
|
|
87.0 |
% |
|
|
88.8 |
% |
|
|
90.7 |
% |
|
|
87.9 |
% |
|
|
86.8 |
% |
|
|
87.8 |
% |
|
|
88.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Combined ratio excluding catastrophe losses and PPD |
|
|
86.0 |
% |
|
|
87.4 |
% |
|
|
87.9 |
% |
|
|
88.9 |
% |
|
|
87.6 |
% |
|
|
86.7 |
% |
|
|
87.4 |
% |
|
|
88.0 |
% |
Catastrophe reinstatement premiums expensedpre-tax |
|
$ |
|
|
|
$ |
|
|
|
$ |
|
|
|
$ |
|
|
|
$ |
|
|
|
$ |
|
|
|
$ |
|
|
|
$ |
|
|
Catastrophe lossespre-tax |
|
$ |
61 |
|
|
$ |
46 |
|
|
$ |
30 |
|
|
$ |
37 |
|
|
$ |
45 |
|
|
$ |
107 |
|
|
$ |
78 |
|
|
$ |
145 |
|
Unfavorable (favorable) prior period development (PPD)pre-tax |
|
$ |
(49 |
) |
|
$ |
(54 |
) |
|
$ |
(12 |
) |
|
$ |
8 |
|
|
$ |
(39 |
) |
|
$ |
(103 |
) |
|
$ |
(69 |
) |
|
$ |
(73 |
) |
Loss and loss expense ratio excluding catastrophe losses and PPD |
|
|
68.8 |
% |
|
|
67.1 |
% |
|
|
69.6 |
% |
|
|
72.5 |
% |
|
|
68.9 |
% |
|
|
68.0 |
% |
|
|
67.7 |
% |
|
|
69.6 |
% |
% Change versus prior year period |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net premiums written |
|
|
16.4 |
% |
|
|
-5.9 |
% |
|
|
3.0 |
% |
|
|
-0.1 |
% |
|
|
2.1 |
% |
|
|
6.5 |
% |
|
|
7.6 |
% |
|
|
4.1 |
% |
Net premiums earned |
|
|
7.4 |
% |
|
|
0.0 |
% |
|
|
-2.6 |
% |
|
|
-0.4 |
% |
|
|
5.2 |
% |
|
|
4.0 |
% |
|
|
9.2 |
% |
|
|
3.2 |
% |
Other ratios |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net premiums written/gross premiums written |
|
|
68 |
% |
|
|
67 |
% |
|
|
67 |
% |
|
|
68 |
% |
|
|
69 |
% |
|
|
68 |
% |
|
|
70 |
% |
|
|
69 |
% |
(1) |
See non-GAAP financial measures. |
|
|
|
Insurance - North American |
|
Page 6 |
|
|
|
|
|
|
|
ACE Limited
Segment Results - Consecutive Quarters
(in millions of U.S. dollars, except ratios)
(Unaudited) |
|
|
Insurance - North American P&C
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
YTD |
|
|
YTD |
|
|
Full Year |
|
|
|
2Q-15 |
|
|
1Q-15 |
|
|
4Q-14 |
|
|
3Q-14 |
|
|
2Q-14 |
|
|
2015 |
|
|
2014 |
|
|
2014 |
|
Gross premiums written (1) |
|
$ |
2,905 |
|
|
$ |
2,125 |
|
|
$ |
2,539 |
|
|
$ |
2,126 |
|
|
$ |
2,347 |
|
|
$ |
5,030 |
|
|
$ |
4,371 |
|
|
$ |
9,036 |
|
Net premiums written (1) |
|
|
1,975 |
|
|
|
1,430 |
|
|
|
1,669 |
|
|
|
1,541 |
|
|
|
1,635 |
|
|
|
3,405 |
|
|
|
3,053 |
|
|
|
6,263 |
|
Net premiums earned |
|
|
1,688 |
|
|
|
1,526 |
|
|
|
1,560 |
|
|
|
1,518 |
|
|
|
1,542 |
|
|
|
3,214 |
|
|
|
3,029 |
|
|
|
6,107 |
|
Losses and loss expenses |
|
|
1,120 |
|
|
|
1,035 |
|
|
|
1,077 |
|
|
|
1,053 |
|
|
|
1,016 |
|
|
|
2,155 |
|
|
|
1,956 |
|
|
|
4,086 |
|
Policy acquisition costs |
|
|
130 |
|
|
|
161 |
|
|
|
154 |
|
|
|
169 |
|
|
|
152 |
|
|
|
291 |
|
|
|
311 |
|
|
|
634 |
|
Administrative expenses |
|
|
189 |
|
|
|
171 |
|
|
|
177 |
|
|
|
165 |
|
|
|
175 |
|
|
|
360 |
|
|
|
336 |
|
|
|
678 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Underwriting income (1) |
|
|
249 |
|
|
|
159 |
|
|
|
152 |
|
|
|
131 |
|
|
|
199 |
|
|
|
408 |
|
|
|
426 |
|
|
|
709 |
|
Net investment income |
|
|
269 |
|
|
|
263 |
|
|
|
273 |
|
|
|
277 |
|
|
|
265 |
|
|
|
532 |
|
|
|
535 |
|
|
|
1,085 |
|
Interest expense |
|
|
2 |
|
|
|
2 |
|
|
|
2 |
|
|
|
2 |
|
|
|
2 |
|
|
|
4 |
|
|
|
5 |
|
|
|
9 |
|
Other income (expense)operating |
|
|
(33 |
) |
|
|
3 |
|
|
|
7 |
|
|
|
(1 |
) |
|
|
5 |
|
|
|
(30 |
) |
|
|
5 |
|
|
|
11 |
|
Income tax expense |
|
|
88 |
|
|
|
78 |
|
|
|
58 |
|
|
|
68 |
|
|
|
89 |
|
|
|
166 |
|
|
|
172 |
|
|
|
298 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income (1) |
|
|
395 |
|
|
|
345 |
|
|
|
372 |
|
|
|
337 |
|
|
|
378 |
|
|
|
740 |
|
|
|
789 |
|
|
|
1,498 |
|
Net realized gains (losses) |
|
|
|
|
|
|
(6 |
) |
|
|
(42 |
) |
|
|
(5 |
) |
|
|
(11 |
) |
|
|
(6 |
) |
|
|
(20 |
) |
|
|
(67 |
) |
Net realized gains (losses) related to unconsolidated entities |
|
|
10 |
|
|
|
4 |
|
|
|
19 |
|
|
|
32 |
|
|
|
19 |
|
|
|
14 |
|
|
|
39 |
|
|
|
90 |
|
Income tax expense on net realized gains (losses) |
|
|
1 |
|
|
|
2 |
|
|
|
1 |
|
|
|
5 |
|
|
|
2 |
|
|
|
3 |
|
|
|
2 |
|
|
|
8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
$ |
404 |
|
|
$ |
341 |
|
|
$ |
348 |
|
|
$ |
359 |
|
|
$ |
384 |
|
|
$ |
745 |
|
|
$ |
806 |
|
|
$ |
1,513 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Combined ratio |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss and loss expense ratio |
|
|
66.3 |
% |
|
|
67.9 |
% |
|
|
69.0 |
% |
|
|
69.3 |
% |
|
|
66.0 |
% |
|
|
67.0 |
% |
|
|
64.6 |
% |
|
|
66.9 |
% |
Policy acquisition cost ratio |
|
|
7.7 |
% |
|
|
10.5 |
% |
|
|
9.9 |
% |
|
|
11.1 |
% |
|
|
9.8 |
% |
|
|
9.1 |
% |
|
|
10.3 |
% |
|
|
10.4 |
% |
Administrative expense ratio |
|
|
11.2 |
% |
|
|
11.2 |
% |
|
|
11.3 |
% |
|
|
11.0 |
% |
|
|
11.3 |
% |
|
|
11.2 |
% |
|
|
11.0 |
% |
|
|
11.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Combined ratio |
|
|
85.2 |
% |
|
|
89.6 |
% |
|
|
90.2 |
% |
|
|
91.4 |
% |
|
|
87.1 |
% |
|
|
87.3 |
% |
|
|
85.9 |
% |
|
|
88.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Combined ratio excluding catastrophe losses and PPD |
|
|
85.0 |
% |
|
|
87.9 |
% |
|
|
89.1 |
% |
|
|
88.5 |
% |
|
|
87.3 |
% |
|
|
86.4 |
% |
|
|
87.2 |
% |
|
|
88.0 |
% |
Catastrophe reinstatement premiums expensedpre-tax |
|
$ |
|
|
|
$ |
|
|
|
$ |
|
|
|
$ |
|
|
|
$ |
|
|
|
$ |
|
|
|
$ |
|
|
|
$ |
|
|
Catastrophe lossespre-tax |
|
$ |
54 |
|
|
$ |
45 |
|
|
$ |
29 |
|
|
$ |
35 |
|
|
$ |
36 |
|
|
$ |
99 |
|
|
$ |
68 |
|
|
$ |
132 |
|
Unfavorable (favorable) prior period development (PPD)pre-tax |
|
$ |
(49 |
) |
|
$ |
(21 |
) |
|
$ |
(11 |
) |
|
$ |
11 |
|
|
$ |
(39 |
) |
|
$ |
(70 |
) |
|
$ |
(107 |
) |
|
$ |
(107 |
) |
Loss and loss expense ratio excluding catastrophe losses and PPD |
|
|
66.1 |
% |
|
|
66.3 |
% |
|
|
67.8 |
% |
|
|
66.9 |
% |
|
|
66.2 |
% |
|
|
66.2 |
% |
|
|
65.9 |
% |
|
|
66.6 |
% |
% Change versus prior year period |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net premiums written |
|
|
20.8 |
% |
|
|
0.8 |
% |
|
|
4.2 |
% |
|
|
2.7 |
% |
|
|
6.9 |
% |
|
|
11.5 |
% |
|
|
8.5 |
% |
|
|
5.9 |
% |
Net premiums earned |
|
|
9.6 |
% |
|
|
2.5 |
% |
|
|
3.3 |
% |
|
|
5.1 |
% |
|
|
7.9 |
% |
|
|
6.2 |
% |
|
|
9.5 |
% |
|
|
6.8 |
% |
Other ratios |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net premiums written/gross premiums written |
|
|
68 |
% |
|
|
67 |
% |
|
|
66 |
% |
|
|
72 |
% |
|
|
70 |
% |
|
|
68 |
% |
|
|
70 |
% |
|
|
69 |
% |
(1) |
Included in Q2 2015 is gross premiums written of $428 million, net premiums written of $252 million, underwriting income benefit of $49 million, and operating income benefit of $15 million related to the transfer of the
Firemans Fund in-force business at the time of the transaction that is non-recurring in 2016. For Q2 2015, excluding the non-recurring benefit, underwriting income and operating income were $200 million and $380 million, respectively.
|
|
|
|
Insurance - North American P&C |
|
Page 7 |
|
|
|
|
|
|
|
ACE Limited
Segment Results - Consecutive Quarters
(in millions of U.S. dollars, except ratios)
(Unaudited) |
|
|
Insurance - North American Agriculture
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
YTD |
|
|
YTD |
|
|
Full Year |
|
|
|
2Q-15 |
|
|
1Q-15 |
|
|
4Q-14 |
|
|
3Q-14 |
|
|
2Q-14 |
|
|
2015 |
|
|
2014 |
|
|
2014 |
|
Gross premiums written |
|
$ |
566 |
|
|
$ |
128 |
|
|
$ |
302 |
|
|
$ |
1,241 |
|
|
$ |
601 |
|
|
$ |
694 |
|
|
$ |
835 |
|
|
$ |
2,378 |
|
Net premiums written |
|
|
379 |
|
|
|
88 |
|
|
|
244 |
|
|
|
764 |
|
|
|
388 |
|
|
|
467 |
|
|
|
582 |
|
|
|
1,590 |
|
Net premiums earned |
|
|
321 |
|
|
|
64 |
|
|
|
327 |
|
|
|
766 |
|
|
|
330 |
|
|
|
385 |
|
|
|
433 |
|
|
|
1,526 |
|
Losses and loss expenses (1) |
|
|
273 |
|
|
|
22 |
|
|
|
252 |
|
|
|
641 |
|
|
|
279 |
|
|
|
295 |
|
|
|
407 |
|
|
|
1,300 |
|
Policy acquisition costs |
|
|
23 |
|
|
|
(4 |
) |
|
|
12 |
|
|
|
41 |
|
|
|
23 |
|
|
|
19 |
|
|
|
28 |
|
|
|
81 |
|
Administrative expenses |
|
|
4 |
|
|
|
(1 |
) |
|
|
4 |
|
|
|
3 |
|
|
|
1 |
|
|
|
3 |
|
|
|
2 |
|
|
|
9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Underwriting income (loss) |
|
|
21 |
|
|
|
47 |
|
|
|
59 |
|
|
|
81 |
|
|
|
27 |
|
|
|
68 |
|
|
|
(4 |
) |
|
|
136 |
|
Net investment income |
|
|
6 |
|
|
|
6 |
|
|
|
7 |
|
|
|
6 |
|
|
|
6 |
|
|
|
12 |
|
|
|
13 |
|
|
|
26 |
|
Interest expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income (expense)operating |
|
|
(8 |
) |
|
|
(8 |
) |
|
|
(9 |
) |
|
|
(7 |
) |
|
|
(9 |
) |
|
|
(16 |
) |
|
|
(17 |
) |
|
|
(33 |
) |
Income tax expense (benefit) |
|
|
4 |
|
|
|
10 |
|
|
|
12 |
|
|
|
23 |
|
|
|
5 |
|
|
|
14 |
|
|
|
(2 |
) |
|
|
33 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income (loss) |
|
|
15 |
|
|
|
35 |
|
|
|
45 |
|
|
|
57 |
|
|
|
19 |
|
|
|
50 |
|
|
|
(6 |
) |
|
|
96 |
|
Net realized gains (losses) (1) |
|
|
|
|
|
|
|
|
|
|
3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3 |
|
Net realized gains (losses) related to unconsolidated entities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense on net realized gains (losses) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) |
|
$ |
15 |
|
|
$ |
35 |
|
|
$ |
48 |
|
|
$ |
57 |
|
|
$ |
19 |
|
|
$ |
50 |
|
|
$ |
(6 |
) |
|
$ |
99 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Combined ratio |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss and loss expense ratio |
|
|
85.3 |
% |
|
|
33.3 |
% |
|
|
77.2 |
% |
|
|
83.7 |
% |
|
|
84.4 |
% |
|
|
76.6 |
% |
|
|
93.9 |
% |
|
|
85.2 |
% |
Policy acquisition cost ratio |
|
|
7.2 |
% |
|
|
-6.0 |
% |
|
|
3.6 |
% |
|
|
5.4 |
% |
|
|
7.0 |
% |
|
|
5.0 |
% |
|
|
6.4 |
% |
|
|
5.3 |
% |
Administrative expense ratio |
|
|
1.1 |
% |
|
|
-0.9 |
% |
|
|
1.0 |
% |
|
|
0.4 |
% |
|
|
0.4 |
% |
|
|
0.7 |
% |
|
|
0.6 |
% |
|
|
0.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Combined ratio |
|
|
93.6 |
% |
|
|
26.4 |
% |
|
|
81.8 |
% |
|
|
89.5 |
% |
|
|
91.8 |
% |
|
|
82.3 |
% |
|
|
100.9 |
% |
|
|
91.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Combined ratio excluding catastrophe losses and PPD |
|
|
91.4 |
% |
|
|
76.7 |
% |
|
|
82.4 |
% |
|
|
89.6 |
% |
|
|
89.1 |
% |
|
|
88.9 |
% |
|
|
89.1 |
% |
|
|
87.8 |
% |
Catastrophe reinstatement premiumspre-tax |
|
$ |
|
|
|
$ |
|
|
|
$ |
|
|
|
$ |
|
|
|
$ |
|
|
|
$ |
|
|
|
$ |
|
|
|
$ |
|
|
Catastrophe lossespre-tax |
|
$ |
7 |
|
|
$ |
1 |
|
|
$ |
1 |
|
|
$ |
2 |
|
|
$ |
9 |
|
|
$ |
8 |
|
|
$ |
10 |
|
|
$ |
13 |
|
Unfavorable (favorable) prior period development (PPD)pre-tax |
|
$ |
|
|
|
$ |
(33 |
) |
|
$ |
(1 |
) |
|
$ |
(3 |
) |
|
$ |
|
|
|
$ |
(33 |
) |
|
$ |
38 |
|
|
$ |
34 |
|
Loss and loss expense ratio excluding catastrophe losses and PPD |
|
|
83.1 |
% |
|
|
83.2 |
% |
|
|
77.9 |
% |
|
|
83.8 |
% |
|
|
81.8 |
% |
|
|
83.1 |
% |
|
|
81.2 |
% |
|
|
81.8 |
% |
% Change versus prior year period |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net premiums written |
|
|
-2.4 |
% |
|
|
-54.6 |
% |
|
|
-5.0 |
% |
|
|
-5.2 |
% |
|
|
-14.2 |
% |
|
|
-19.8 |
% |
|
|
3.0 |
% |
|
|
-2.3 |
% |
Net premiums earned |
|
|
-2.9 |
% |
|
|
-37.2 |
% |
|
|
-23.4 |
% |
|
|
-9.8 |
% |
|
|
-5.7 |
% |
|
|
-11.0 |
% |
|
|
7.6 |
% |
|
|
-9.1 |
% |
Other ratios |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net premiums written/gross premiums written |
|
|
67 |
% |
|
|
69 |
% |
|
|
81 |
% |
|
|
62 |
% |
|
|
65 |
% |
|
|
67 |
% |
|
|
70 |
% |
|
|
67 |
% |
(1) |
See non-GAAP financial measures for treatment of losses and loss expenses in the P&C combined ratio. |
|
|
|
Insurance - North American Agriculture |
|
Page 8 |
|
|
|
|
|
|
|
ACE Limited
Segment Results - Consecutive Quarters
(in millions of U.S. dollars, except ratios)
(Unaudited) |
|
|
Insurance - Overseas General
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2Q-15 |
|
|
1Q-15 |
|
|
4Q-14 |
|
|
3Q-14 |
|
|
2Q-14 |
|
|
Constant $ 2Q-14 (1) |
|
|
YTD 2015 |
|
|
YTD 2014 |
|
|
Full Year 2014 |
|
Gross premiums written |
|
$ |
2,212 |
|
|
$ |
2,255 |
|
|
$ |
2,212 |
|
|
$ |
2,156 |
|
|
$ |
2,224 |
|
|
$ |
1,973 |
|
|
$ |
4,467 |
|
|
$ |
4,485 |
|
|
$ |
8,853 |
|
Net premiums written |
|
|
1,669 |
|
|
|
1,794 |
|
|
|
1,749 |
|
|
|
1,719 |
|
|
|
1,760 |
|
|
|
1,553 |
|
|
|
3,463 |
|
|
|
3,531 |
|
|
|
6,999 |
|
Net premiums earned |
|
|
1,644 |
|
|
|
1,637 |
|
|
|
1,758 |
|
|
|
1,726 |
|
|
|
1,709 |
|
|
|
1,502 |
|
|
|
3,281 |
|
|
|
3,321 |
|
|
|
6,805 |
|
Losses and loss expenses |
|
|
816 |
|
|
|
814 |
|
|
|
835 |
|
|
|
707 |
|
|
|
830 |
|
|
|
728 |
|
|
|
1,630 |
|
|
|
1,647 |
|
|
|
3,189 |
|
Policy acquisition costs |
|
|
396 |
|
|
|
389 |
|
|
|
419 |
|
|
|
418 |
|
|
|
402 |
|
|
|
350 |
|
|
|
785 |
|
|
|
788 |
|
|
|
1,625 |
|
Administrative expenses |
|
|
254 |
|
|
|
256 |
|
|
|
262 |
|
|
|
258 |
|
|
|
256 |
|
|
|
226 |
|
|
|
510 |
|
|
|
506 |
|
|
|
1,026 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Underwriting income |
|
|
178 |
|
|
|
178 |
|
|
|
242 |
|
|
|
343 |
|
|
|
221 |
|
|
|
198 |
|
|
|
356 |
|
|
|
380 |
|
|
|
965 |
|
Net investment income |
|
|
139 |
|
|
|
138 |
|
|
|
147 |
|
|
|
130 |
|
|
|
136 |
|
|
|
127 |
|
|
|
277 |
|
|
|
268 |
|
|
|
545 |
|
Interest expense |
|
|
1 |
|
|
|
1 |
|
|
|
2 |
|
|
|
2 |
|
|
|
1 |
|
|
|
1 |
|
|
|
2 |
|
|
|
2 |
|
|
|
6 |
|
Other income (expense)operating |
|
|
(11 |
) |
|
|
(21 |
) |
|
|
(15 |
) |
|
|
(15 |
) |
|
|
(17 |
) |
|
|
(15 |
) |
|
|
(32 |
) |
|
|
(26 |
) |
|
|
(56 |
) |
Income tax expense |
|
|
65 |
|
|
|
53 |
|
|
|
78 |
|
|
|
108 |
|
|
|
57 |
|
|
|
53 |
|
|
|
118 |
|
|
|
99 |
|
|
|
285 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income |
|
|
240 |
|
|
|
241 |
|
|
|
294 |
|
|
|
348 |
|
|
|
282 |
|
|
|
256 |
|
|
|
481 |
|
|
|
521 |
|
|
|
1,163 |
|
Net realized gains (losses) |
|
|
13 |
|
|
|
(10 |
) |
|
|
(7 |
) |
|
|
(75 |
) |
|
|
14 |
|
|
|
|
|
|
|
3 |
|
|
|
4 |
|
|
|
(78 |
) |
Net realized gains (losses) related to unconsolidated entities |
|
|
3 |
|
|
|
4 |
|
|
|
12 |
|
|
|
9 |
|
|
|
9 |
|
|
|
|
|
|
|
7 |
|
|
|
24 |
|
|
|
45 |
|
Income tax expense (benefit) on net realized gains (losses) |
|
|
4 |
|
|
|
(1 |
) |
|
|
111 |
|
|
|
(11 |
) |
|
|
(2 |
) |
|
|
|
|
|
|
3 |
|
|
|
(7 |
) |
|
|
93 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
$ |
252 |
|
|
$ |
236 |
|
|
$ |
188 |
|
|
$ |
293 |
|
|
$ |
307 |
|
|
|
|
|
|
$ |
488 |
|
|
$ |
556 |
|
|
$ |
1,037 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Combined ratio |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss and loss expense ratio |
|
|
49.7 |
% |
|
|
49.7 |
% |
|
|
47.5 |
% |
|
|
40.9 |
% |
|
|
48.6 |
% |
|
|
|
|
|
|
49.7 |
% |
|
|
49.6 |
% |
|
|
46.9 |
% |
Policy acquisition cost ratio |
|
|
24.1 |
% |
|
|
23.8 |
% |
|
|
23.8 |
% |
|
|
24.3 |
% |
|
|
23.5 |
% |
|
|
|
|
|
|
23.9 |
% |
|
|
23.7 |
% |
|
|
23.9 |
% |
Administrative expense ratio |
|
|
15.4 |
% |
|
|
15.6 |
% |
|
|
15.0 |
% |
|
|
14.9 |
% |
|
|
15.0 |
% |
|
|
|
|
|
|
15.5 |
% |
|
|
15.3 |
% |
|
|
15.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Combined ratio |
|
|
89.2 |
% |
|
|
89.1 |
% |
|
|
86.3 |
% |
|
|
80.1 |
% |
|
|
87.1 |
% |
|
|
|
|
|
|
89.1 |
% |
|
|
88.6 |
% |
|
|
85.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Combined ratio excluding catastrophe losses and PPD |
|
|
89.8 |
% |
|
|
90.3 |
% |
|
|
89.4 |
% |
|
|
90.5 |
% |
|
|
89.3 |
% |
|
|
|
|
|
|
90.1 |
% |
|
|
89.9 |
% |
|
|
89.9 |
% |
Catastrophe reinstatement premiumspre-tax |
|
$ |
|
|
|
$ |
|
|
|
$ |
|
|
|
$ |
|
|
|
$ |
|
|
|
|
|
|
|
$ |
|
|
|
$ |
|
|
|
$ |
|
|
Catastrophe losses - pre-tax |
|
$ |
58 |
|
|
$ |
5 |
|
|
$ |
30 |
|
|
$ |
39 |
|
|
$ |
26 |
|
|
|
|
|
|
$ |
63 |
|
|
$ |
43 |
|
|
$ |
112 |
|
Favorable prior period development (PPD)pre-tax |
|
$ |
(68 |
) |
|
$ |
(24 |
) |
|
$ |
(86 |
) |
|
$ |
(219 |
) |
|
$ |
(63 |
) |
|
|
|
|
|
$ |
(92 |
) |
|
$ |
(86 |
) |
|
$ |
(391 |
) |
Loss and loss expense ratio excluding catastrophe losses and PPD |
|
|
50.3 |
% |
|
|
50.9 |
% |
|
|
50.7 |
% |
|
|
51.3 |
% |
|
|
50.8 |
% |
|
|
|
|
|
|
50.6 |
% |
|
|
50.9 |
% |
|
|
51.0 |
% |
% Change versus prior year period |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net premiums written as reported |
|
|
-5.1 |
% |
|
|
1.3 |
% |
|
|
3.0 |
% |
|
|
9.4 |
% |
|
|
8.0 |
% |
|
|
|
|
|
|
-1.9 |
% |
|
|
8.7 |
% |
|
|
7.4 |
% |
Net premiums earned as reported |
|
|
-3.9 |
% |
|
|
1.6 |
% |
|
|
3.4 |
% |
|
|
7.2 |
% |
|
|
9.4 |
% |
|
|
|
|
|
|
-1.2 |
% |
|
|
9.9 |
% |
|
|
7.5 |
% |
Net premiums written constant $ |
|
|
7.6 |
% |
|
|
11.0 |
% |
|
|
8.4 |
% |
|
|
8.1 |
% |
|
|
8.8 |
% |
|
|
|
|
|
|
9.3 |
% |
|
|
10.5 |
% |
|
|
9.4 |
% |
Net premiums earned constant $ |
|
|
9.4 |
% |
|
|
11.2 |
% |
|
|
8.8 |
% |
|
|
6.0 |
% |
|
|
9.8 |
% |
|
|
|
|
|
|
10.3 |
% |
|
|
12.1 |
% |
|
|
9.6 |
% |
Other ratios |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net premiums written/gross premiums written |
|
|
75 |
% |
|
|
80 |
% |
|
|
79 |
% |
|
|
80 |
% |
|
|
79 |
% |
|
|
|
|
|
|
78 |
% |
|
|
79 |
% |
|
|
79 |
% |
(1) |
Prior periods on a constant dollar basis. |
|
|
|
Insurance - Overseas General |
|
Page 9 |
|
|
|
|
|
|
|
ACE Limited
Segment Results - Consecutive Quarters
(in millions of U.S. dollars, except ratios)
(Unaudited) |
|
|
Global Reinsurance
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
YTD |
|
|
YTD |
|
|
Full Year |
|
|
|
2Q-15 |
|
|
1Q-15 |
|
|
4Q-14 |
|
|
3Q-14 |
|
|
2Q-14 |
|
|
2015 |
|
|
2014 |
|
|
2014 |
|
Gross premiums written |
|
$ |
292 |
|
|
$ |
292 |
|
|
$ |
140 |
|
|
$ |
213 |
|
|
$ |
308 |
|
|
$ |
584 |
|
|
$ |
641 |
|
|
$ |
994 |
|
Net premiums written |
|
|
261 |
|
|
|
273 |
|
|
|
141 |
|
|
|
208 |
|
|
|
278 |
|
|
|
534 |
|
|
|
586 |
|
|
|
935 |
|
Net premiums earned |
|
|
220 |
|
|
|
226 |
|
|
|
226 |
|
|
|
255 |
|
|
|
261 |
|
|
|
446 |
|
|
|
545 |
|
|
|
1,026 |
|
Losses and loss expenses |
|
|
72 |
|
|
|
99 |
|
|
|
104 |
|
|
|
92 |
|
|
|
109 |
|
|
|
171 |
|
|
|
235 |
|
|
|
431 |
|
Policy acquisition costs |
|
|
60 |
|
|
|
54 |
|
|
|
56 |
|
|
|
74 |
|
|
|
60 |
|
|
|
114 |
|
|
|
127 |
|
|
|
257 |
|
Administrative expenses |
|
|
13 |
|
|
|
12 |
|
|
|
13 |
|
|
|
13 |
|
|
|
14 |
|
|
|
25 |
|
|
|
28 |
|
|
|
54 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Underwriting income |
|
|
75 |
|
|
|
61 |
|
|
|
53 |
|
|
|
76 |
|
|
|
78 |
|
|
|
136 |
|
|
|
155 |
|
|
|
284 |
|
Net investment income |
|
|
79 |
|
|
|
75 |
|
|
|
78 |
|
|
|
81 |
|
|
|
80 |
|
|
|
154 |
|
|
|
157 |
|
|
|
316 |
|
Interest expense |
|
|
1 |
|
|
|
1 |
|
|
|
|
|
|
|
1 |
|
|
|
2 |
|
|
|
2 |
|
|
|
3 |
|
|
|
4 |
|
Other income (expense)operating |
|
|
|
|
|
|
1 |
|
|
|
3 |
|
|
|
|
|
|
|
|
|
|
|
1 |
|
|
|
1 |
|
|
|
4 |
|
Income tax expense |
|
|
8 |
|
|
|
8 |
|
|
|
7 |
|
|
|
11 |
|
|
|
10 |
|
|
|
16 |
|
|
|
20 |
|
|
|
38 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income |
|
|
145 |
|
|
|
128 |
|
|
|
127 |
|
|
|
145 |
|
|
|
146 |
|
|
|
273 |
|
|
|
290 |
|
|
|
562 |
|
Net realized gains (losses) |
|
|
5 |
|
|
|
(11 |
) |
|
|
(12 |
) |
|
|
6 |
|
|
|
(15 |
) |
|
|
(6 |
) |
|
|
(23 |
) |
|
|
(29 |
) |
Net realized gains (losses) related to unconsolidated entities |
|
|
3 |
|
|
|
4 |
|
|
|
12 |
|
|
|
10 |
|
|
|
10 |
|
|
|
7 |
|
|
|
28 |
|
|
|
50 |
|
Income tax expense on net realized gains (losses) |
|
|
(1 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
$ |
154 |
|
|
$ |
121 |
|
|
$ |
127 |
|
|
$ |
161 |
|
|
$ |
141 |
|
|
$ |
275 |
|
|
$ |
295 |
|
|
$ |
583 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Combined ratio |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss and loss expense ratio |
|
|
32.9 |
% |
|
|
43.6 |
% |
|
|
45.8 |
% |
|
|
36.2 |
% |
|
|
41.7 |
% |
|
|
38.3 |
% |
|
|
43.1 |
% |
|
|
42.0 |
% |
Policy acquisition cost ratio |
|
|
27.2 |
% |
|
|
24.0 |
% |
|
|
25.0 |
% |
|
|
28.8 |
% |
|
|
23.1 |
% |
|
|
25.6 |
% |
|
|
23.3 |
% |
|
|
25.0 |
% |
Administrative expense ratio |
|
|
5.6 |
% |
|
|
5.6 |
% |
|
|
5.7 |
% |
|
|
5.2 |
% |
|
|
5.1 |
% |
|
|
5.6 |
% |
|
|
5.1 |
% |
|
|
5.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Combined ratio |
|
|
65.7 |
% |
|
|
73.2 |
% |
|
|
76.5 |
% |
|
|
70.2 |
% |
|
|
69.9 |
% |
|
|
69.5 |
% |
|
|
71.5 |
% |
|
|
72.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Combined ratio excluding catastrophe losses and PPD |
|
|
79.6 |
% |
|
|
75.5 |
% |
|
|
76.2 |
% |
|
|
75.7 |
% |
|
|
75.4 |
% |
|
|
77.5 |
% |
|
|
75.2 |
% |
|
|
75.6 |
% |
Catastrophe reinstatement premiums collectedpre-tax |
|
$ |
|
|
|
$ |
|
|
|
$ |
2 |
|
|
$ |
1 |
|
|
$ |
|
|
|
$ |
|
|
|
$ |
|
|
|
$ |
3 |
|
Catastrophe lossespre-tax |
|
$ |
5 |
|
|
$ |
|
|
|
$ |
11 |
|
|
$ |
11 |
|
|
$ |
9 |
|
|
$ |
5 |
|
|
$ |
12 |
|
|
$ |
34 |
|
Favorable prior period development (PPD)pre-tax |
|
$ |
(36 |
) |
|
$ |
(5 |
) |
|
$ |
(9 |
) |
|
$ |
(21 |
) |
|
$ |
(24 |
) |
|
$ |
(41 |
) |
|
$ |
(33 |
) |
|
$ |
(63 |
) |
Loss and loss expense ratio excluding catastrophe losses and PPD |
|
|
46.7 |
% |
|
|
46.0 |
% |
|
|
45.4 |
% |
|
|
42.8 |
% |
|
|
47.2 |
% |
|
|
46.3 |
% |
|
|
46.8 |
% |
|
|
45.5 |
% |
% Change versus prior year period |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net premiums written as reported |
|
|
-5.9 |
% |
|
|
-11.4 |
% |
|
|
-9.4 |
% |
|
|
-21.2 |
% |
|
|
-4.9 |
% |
|
|
-8.8 |
% |
|
|
2.5 |
% |
|
|
-5.7 |
% |
Net premiums earned as reported |
|
|
-15.5 |
% |
|
|
-20.6 |
% |
|
|
-7.7 |
% |
|
|
6.3 |
% |
|
|
6.1 |
% |
|
|
-18.1 |
% |
|
|
10.8 |
% |
|
|
5.1 |
% |
Net premiums written constant $ |
|
|
-3.9 |
% |
|
|
-9.1 |
% |
|
|
-8.8 |
% |
|
|
-21.8 |
% |
|
|
-5.0 |
% |
|
|
-6.6 |
% |
|
|
2.5 |
% |
|
|
-5.8 |
% |
Net premiums earned constant $ |
|
|
-13.2 |
% |
|
|
-19.0 |
% |
|
|
-7.1 |
% |
|
|
5.7 |
% |
|
|
5.5 |
% |
|
|
-16.3 |
% |
|
|
10.4 |
% |
|
|
4.9 |
% |
Other ratios |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net premiums written/gross premiums written |
|
|
90 |
% |
|
|
93 |
% |
|
|
100 |
% |
|
|
98 |
% |
|
|
90 |
% |
|
|
92 |
% |
|
|
91 |
% |
|
|
94 |
% |
|
|
|
Global Reinsurance |
|
Page 10 |
|
|
|
|
|
|
|
ACE Limited
Segment Results - Consecutive Quarters
(in millions of U.S. dollars)
(Unaudited) |
|
|
Life
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
YTD |
|
|
YTD |
|
|
Full Year |
|
|
|
2Q-15 |
|
|
1Q-15 |
|
|
4Q-14 |
|
|
3Q-14 |
|
|
2Q-14 |
|
|
2015 |
|
|
2014 |
|
|
2014 |
|
Gross premiums written |
|
$ |
529 |
|
|
$ |
522 |
|
|
$ |
553 |
|
|
$ |
528 |
|
|
$ |
526 |
|
|
$ |
1,051 |
|
|
$ |
1,048 |
|
|
$ |
2,129 |
|
Net premiums written |
|
|
500 |
|
|
|
491 |
|
|
|
523 |
|
|
|
497 |
|
|
|
498 |
|
|
|
991 |
|
|
|
992 |
|
|
|
2,012 |
|
Net premiums earned |
|
|
487 |
|
|
|
474 |
|
|
|
499 |
|
|
|
489 |
|
|
|
490 |
|
|
|
961 |
|
|
|
974 |
|
|
|
1,962 |
|
Losses and loss expenses |
|
|
137 |
|
|
|
152 |
|
|
|
147 |
|
|
|
145 |
|
|
|
146 |
|
|
|
289 |
|
|
|
297 |
|
|
|
589 |
|
Policy benefits (1) |
|
|
153 |
|
|
|
142 |
|
|
|
134 |
|
|
|
125 |
|
|
|
144 |
|
|
|
295 |
|
|
|
258 |
|
|
|
517 |
|
(Gains) losses from fair value changes in separate account assets (1) |
|
|
(6 |
) |
|
|
(11 |
) |
|
|
3 |
|
|
|
6 |
|
|
|
(17 |
) |
|
|
(17 |
) |
|
|
(11 |
) |
|
|
(2 |
) |
Policy acquisition costs |
|
|
118 |
|
|
|
107 |
|
|
|
123 |
|
|
|
123 |
|
|
|
121 |
|
|
|
225 |
|
|
|
232 |
|
|
|
478 |
|
Administrative expenses |
|
|
74 |
|
|
|
73 |
|
|
|
73 |
|
|
|
71 |
|
|
|
73 |
|
|
|
147 |
|
|
|
141 |
|
|
|
285 |
|
Net investment income |
|
|
66 |
|
|
|
66 |
|
|
|
69 |
|
|
|
69 |
|
|
|
66 |
|
|
|
132 |
|
|
|
130 |
|
|
|
268 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Life underwriting income (2) |
|
|
77 |
|
|
|
77 |
|
|
|
88 |
|
|
|
88 |
|
|
|
89 |
|
|
|
154 |
|
|
|
187 |
|
|
|
363 |
|
Interest expense |
|
|
2 |
|
|
|
1 |
|
|
|
1 |
|
|
|
4 |
|
|
|
3 |
|
|
|
3 |
|
|
|
6 |
|
|
|
11 |
|
Other income (expense) - operating (1) |
|
|
|
|
|
|
(2 |
) |
|
|
|
|
|
|
(1 |
) |
|
|
(2 |
) |
|
|
(2 |
) |
|
|
(7 |
) |
|
|
(8 |
) |
Income tax expense |
|
|
8 |
|
|
|
8 |
|
|
|
11 |
|
|
|
11 |
|
|
|
12 |
|
|
|
16 |
|
|
|
25 |
|
|
|
47 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income |
|
|
67 |
|
|
|
66 |
|
|
|
76 |
|
|
|
72 |
|
|
|
72 |
|
|
|
133 |
|
|
|
149 |
|
|
|
297 |
|
Net realized gains (losses): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mark-to-market on guaranteed living benefits derivative (net of related hedges) |
|
|
102 |
|
|
|
(57 |
) |
|
|
(153 |
) |
|
|
(95 |
) |
|
|
(70 |
) |
|
|
45 |
|
|
|
(137 |
) |
|
|
(385 |
) |
Foreign exchange gains (losses) and all other |
|
|
1 |
|
|
|
(2 |
) |
|
|
7 |
|
|
|
6 |
|
|
|
(2 |
) |
|
|
(1 |
) |
|
|
(11 |
) |
|
|
2 |
|
Net realized gains (losses) related to unconsolidated entities |
|
|
17 |
|
|
|
14 |
|
|
|
6 |
|
|
|
4 |
|
|
|
(2 |
) |
|
|
31 |
|
|
|
(4 |
) |
|
|
6 |
|
Income tax expense (benefit) on net realized gains (losses) |
|
|
2 |
|
|
|
1 |
|
|
|
1 |
|
|
|
1 |
|
|
|
|
|
|
|
3 |
|
|
|
(3 |
) |
|
|
(1 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) |
|
$ |
185 |
|
|
$ |
20 |
|
|
$ |
(65 |
) |
|
$ |
(14 |
) |
|
$ |
(2 |
) |
|
$ |
205 |
|
|
$ |
|
|
|
$ |
(79 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% Change versus prior year period |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net premiums written as reported |
|
|
0.3 |
% |
|
|
-0.6 |
% |
|
|
4.0 |
% |
|
|
3.8 |
% |
|
|
2.2 |
% |
|
|
-0.1 |
% |
|
|
0.2 |
% |
|
|
2.0 |
% |
Net premiums earned as reported |
|
|
-0.8 |
% |
|
|
-1.9 |
% |
|
|
3.6 |
% |
|
|
4.8 |
% |
|
|
2.2 |
% |
|
|
-1.4 |
% |
|
|
1.8 |
% |
|
|
3.0 |
% |
Net premiums written constant $ (3) |
|
|
4.1 |
% |
|
|
2.4 |
% |
|
|
6.2 |
% |
|
|
4.4 |
% |
|
|
4.4 |
% |
|
|
3.3 |
% |
|
|
2.7 |
% |
|
|
4.0 |
% |
Net premiums earned constant $ |
|
|
3.0 |
% |
|
|
0.9 |
% |
|
|
5.9 |
% |
|
|
5.4 |
% |
|
|
4.2 |
% |
|
|
1.9 |
% |
|
|
4.1 |
% |
|
|
4.9 |
% |
(1) |
(Gains) losses from fair value changes in separate account assets that do not qualify for separate account reporting under GAAP are reclassified from Other income (expense) for purposes of presenting Life underwriting
income. The offsetting movement in the separate account liabilities is included in Policy benefits. |
(2) |
We assess the performance of our Life business based on Life underwriting income which includes Net investment income and (Gains) losses from fair value changes in separate account assets. |
(3) |
International life insurance net premiums written and deposits breakdown (excludes Combined North American and Life reinsurance businesses): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Constant $ |
|
|
|
|
|
|
|
|
Constant $ |
|
|
|
|
|
|
|
|
|
% Change |
|
|
|
|
|
|
|
|
% Change |
|
|
|
|
|
|
Constant $ |
|
|
2Q-15 vs. |
|
|
|
|
|
Constant $ |
|
|
YTD-15 vs. |
|
|
|
2Q-15 |
|
|
2Q-14 |
|
|
2Q-14 |
|
|
YTD-15 |
|
|
YTD-14 |
|
|
YTD-14 |
|
International life insurance net premiums written |
|
$ |
186 |
|
|
$ |
173 |
|
|
|
7.6 |
% |
|
$ |
365 |
|
|
$ |
344 |
|
|
|
6.0 |
% |
International life insurance deposits (4) |
|
|
263 |
|
|
|
275 |
|
|
|
-4.3 |
% |
|
|
516 |
|
|
|
470 |
|
|
|
9.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total international life insurance net premiums written and deposits |
|
$ |
449 |
|
|
$ |
448 |
|
|
|
0.3 |
% |
|
$ |
881 |
|
|
$ |
814 |
|
|
|
8.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(4) |
Includes deposits collected on universal life and investment contracts. Consistent with GAAP, premiums collected on universal life and investment contracts are considered deposits and excluded from revenues.
|
|
|
|
|
|
|
|
ACE Limited
Loss Reserve Rollforward
(in millions of U.S. dollars, except ratios)
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unpaid Losses |
|
|
Net Paid to |
|
|
|
Gross |
|
|
Ceded |
|
|
Net |
|
|
Incurred Ratio |
|
Balance at December 31, 2013 |
|
$ |
37,443 |
|
|
$ |
10,612 |
|
|
$ |
26,831 |
|
|
|
|
|
Losses and loss expenses incurred |
|
|
2,462 |
|
|
|
301 |
|
|
|
2,161 |
|
|
|
|
|
Losses and loss expenses paid |
|
|
(3,059 |
) |
|
|
(762 |
) |
|
|
(2,297 |
) |
|
|
106 |
% |
Other (incl. foreign exch. revaluation) |
|
|
20 |
|
|
|
16 |
|
|
|
4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at March 31, 2014 |
|
$ |
36,866 |
|
|
$ |
10,167 |
|
|
$ |
26,699 |
|
|
|
|
|
Losses and loss expenses incurred |
|
|
3,004 |
|
|
|
616 |
|
|
|
2,388 |
|
|
|
|
|
Losses and loss expenses paid |
|
|
(2,878 |
) |
|
|
(729 |
) |
|
|
(2,149 |
) |
|
|
90 |
% |
Other (incl. foreign exch. revaluation) |
|
|
185 |
|
|
|
56 |
|
|
|
129 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at June 30, 2014 |
|
$ |
37,177 |
|
|
$ |
10,110 |
|
|
$ |
27,067 |
|
|
|
|
|
Losses and loss expenses incurred |
|
|
3,840 |
|
|
|
1,156 |
|
|
|
2,684 |
|
|
|
|
|
Losses and loss expenses paid |
|
|
(3,165 |
) |
|
|
(810 |
) |
|
|
(2,355 |
) |
|
|
88 |
% |
Other (incl. foreign exch. revaluation) |
|
|
(405 |
) |
|
|
(120 |
) |
|
|
(285 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at September 30, 2014 |
|
$ |
37,447 |
|
|
$ |
10,336 |
|
|
$ |
27,111 |
|
|
|
|
|
Losses and loss expenses incurred |
|
|
3,442 |
|
|
|
1,026 |
|
|
|
2,416 |
|
|
|
|
|
Losses and loss expenses paid |
|
|
(3,307 |
) |
|
|
(873 |
) |
|
|
(2,434 |
) |
|
|
101 |
% |
Other (incl. foreign exch. revaluation) |
|
|
733 |
|
|
|
818 |
|
|
|
(85 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at December 31, 2014 |
|
$ |
38,315 |
|
|
$ |
11,307 |
|
|
$ |
27,008 |
|
|
|
|
|
Losses and loss expenses incurred |
|
|
2,743 |
|
|
|
621 |
|
|
|
2,122 |
|
|
|
|
|
Losses and loss expenses paid |
|
|
(3,062 |
) |
|
|
(744 |
) |
|
|
(2,318 |
) |
|
|
109 |
% |
Other (incl. foreign exch. revaluation) |
|
|
(670 |
) |
|
|
(197 |
) |
|
|
(473 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at March 31, 2015 |
|
$ |
37,326 |
|
|
$ |
10,987 |
|
|
$ |
26,339 |
|
|
|
|
|
Losses and loss expenses incurred |
|
|
3,065 |
|
|
|
648 |
|
|
|
2,417 |
|
|
|
|
|
Losses and loss expenses paid |
|
|
(2,830 |
) |
|
|
(547 |
) |
|
|
(2,283 |
) |
|
|
94 |
% |
Other (incl. foreign exch. revaluation) |
|
|
669 |
|
|
|
60 |
|
|
|
609 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at June 30, 2015 |
|
$ |
38,230 |
|
|
$ |
11,148 |
|
|
$ |
27,082 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add net recoverable on paid losses |
|
|
|
|
|
|
627 |
|
|
|
(627 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance including net recoverable on paid losses |
|
$ |
38,230 |
|
|
$ |
11,775 |
|
|
$ |
26,455 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss Reserve Rollforward |
|
Page 12 |
|
|
|
|
|
|
|
ACE Limited
Reinsurance Recoverable Analysis
(in millions of U.S. dollars)
(Unaudited) |
|
|
Net Reinsurance Recoverable by Division
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30 |
|
|
March 31 |
|
|
December 31 |
|
|
|
2015 |
|
|
2015 |
|
|
2014 |
|
Reinsurance recoverable on paid losses and loss expenses |
|
|
|
|
|
|
|
|
|
|
|
|
Active operations |
|
$ |
448 |
|
|
$ |
413 |
|
|
$ |
478 |
|
Brandywine and Other Run-off |
|
|
283 |
|
|
|
292 |
|
|
|
313 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
$ |
731 |
|
|
$ |
705 |
|
|
$ |
791 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reinsurance recoverable on unpaid losses and loss expenses |
|
|
|
|
|
|
|
|
|
|
|
|
Active operations |
|
$ |
10,262 |
|
|
$ |
10,052 |
|
|
$ |
10,348 |
|
Brandywine and Other Run-off |
|
|
1,136 |
|
|
|
1,184 |
|
|
|
1,210 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
$ |
11,398 |
|
|
$ |
11,236 |
|
|
$ |
11,558 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross reinsurance recoverable |
|
|
|
|
|
|
|
|
|
|
|
|
Active operations |
|
$ |
10,710 |
|
|
$ |
10,465 |
|
|
$ |
10,826 |
|
Brandywine and Other Run-off |
|
|
1,419 |
|
|
|
1,476 |
|
|
|
1,523 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
$ |
12,129 |
|
|
$ |
11,941 |
|
|
$ |
12,349 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for uncollectible reinsurance (1) |
|
|
|
|
|
|
|
|
|
|
|
|
Active operations |
|
$ |
(214 |
) |
|
$ |
(213 |
) |
|
$ |
(217 |
) |
Brandywine and Other Run-off |
|
|
(140 |
) |
|
|
(140 |
) |
|
|
(140 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
$ |
(354 |
) |
|
$ |
(353 |
) |
|
$ |
(357 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net reinsurance recoverable |
|
|
|
|
|
|
|
|
|
|
|
|
Active operations |
|
$ |
10,496 |
|
|
$ |
10,252 |
|
|
$ |
10,609 |
|
Brandywine and Other Run-off |
|
|
1,279 |
|
|
|
1,336 |
|
|
|
1,383 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
$ |
11,775 |
|
|
$ |
11,588 |
|
|
$ |
11,992 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
The provision for uncollectible reinsurance is based on a default analysis applied to gross reinsurance, net of usable collateral of approximately $2.5 billion. |
|
|
|
Reinsurance Recoverable |
|
Page 13 |
|
|
|
|
|
|
|
ACE Limited
Investment Portfolio (in
millions of U.S. dollars) (Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30 |
|
|
March 31 |
|
|
December 31 |
|
|
|
2015 |
|
|
2015 |
|
|
2014 |
|
Market Value |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fixed maturities available for sale |
|
$ |
48,701 |
|
|
|
|
|
|
$ |
50,410 |
|
|
|
|
|
|
$ |
49,395 |
|
|
|
|
|
Fixed maturities held to maturity |
|
|
8,805 |
|
|
|
|
|
|
|
7,307 |
|
|
|
|
|
|
|
7,589 |
|
|
|
|
|
Short-term investments |
|
|
2,062 |
|
|
|
|
|
|
|
2,536 |
|
|
|
|
|
|
|
2,322 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total fixed maturities |
|
$ |
59,568 |
|
|
|
|
|
|
$ |
60,253 |
|
|
|
|
|
|
$ |
59,306 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset Allocation by Market Value |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Treasury |
|
$ |
2,424 |
|
|
|
4 |
% |
|
$ |
2,448 |
|
|
|
4 |
% |
|
$ |
2,448 |
|
|
|
4 |
% |
Agency |
|
|
1,139 |
|
|
|
2 |
% |
|
|
1,221 |
|
|
|
2 |
% |
|
|
1,222 |
|
|
|
2 |
% |
Corporate and asset-backed |
|
|
20,007 |
|
|
|
34 |
% |
|
|
20,370 |
|
|
|
34 |
% |
|
|
19,854 |
|
|
|
34 |
% |
Mortgage-backed |
|
|
12,661 |
|
|
|
21 |
% |
|
|
12,791 |
|
|
|
21 |
% |
|
|
12,325 |
|
|
|
21 |
% |
Municipal |
|
|
5,276 |
|
|
|
9 |
% |
|
|
5,067 |
|
|
|
9 |
% |
|
|
4,930 |
|
|
|
8 |
% |
Non-U.S. |
|
|
15,999 |
|
|
|
27 |
% |
|
|
15,820 |
|
|
|
26 |
% |
|
|
16,205 |
|
|
|
27 |
% |
Short-term investments |
|
|
2,062 |
|
|
|
3 |
% |
|
|
2,536 |
|
|
|
4 |
% |
|
|
2,322 |
|
|
|
4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total fixed maturities |
|
$ |
59,568 |
|
|
|
100 |
% |
|
$ |
60,253 |
|
|
|
100 |
% |
|
$ |
59,306 |
|
|
|
100 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Credit Quality by Market Value |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AAA |
|
$ |
9,320 |
|
|
|
16 |
% |
|
$ |
9,386 |
|
|
|
16 |
% |
|
$ |
8,943 |
|
|
|
15 |
% |
AA |
|
|
21,294 |
|
|
|
36 |
% |
|
|
21,760 |
|
|
|
36 |
% |
|
|
21,589 |
|
|
|
36 |
% |
A |
|
|
11,568 |
|
|
|
19 |
% |
|
|
11,712 |
|
|
|
19 |
% |
|
|
11,625 |
|
|
|
20 |
% |
BBB |
|
|
8,806 |
|
|
|
15 |
% |
|
|
8,789 |
|
|
|
15 |
% |
|
|
8,690 |
|
|
|
15 |
% |
BB |
|
|
4,531 |
|
|
|
8 |
% |
|
|
4,377 |
|
|
|
7 |
% |
|
|
4,372 |
|
|
|
7 |
% |
B |
|
|
3,860 |
|
|
|
6 |
% |
|
|
4,054 |
|
|
|
7 |
% |
|
|
3,916 |
|
|
|
7 |
% |
Other |
|
|
189 |
|
|
|
0 |
% |
|
|
175 |
|
|
|
0 |
% |
|
|
171 |
|
|
|
0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total fixed maturities |
|
$ |
59,568 |
|
|
|
100 |
% |
|
$ |
60,253 |
|
|
|
100 |
% |
|
$ |
59,306 |
|
|
|
100 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost/Amortized Cost |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fixed maturities available for sale |
|
$ |
47,599 |
|
|
|
|
|
|
$ |
48,384 |
|
|
|
|
|
|
$ |
47,826 |
|
|
|
|
|
Fixed maturities held to maturity |
|
|
8,676 |
|
|
|
|
|
|
|
6,982 |
|
|
|
|
|
|
|
7,331 |
|
|
|
|
|
Short-term investments |
|
|
2,062 |
|
|
|
|
|
|
|
2,536 |
|
|
|
|
|
|
|
2,322 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subtotal fixed maturities |
|
|
58,337 |
|
|
|
|
|
|
|
57,902 |
|
|
|
|
|
|
|
57,479 |
|
|
|
|
|
Equity securities |
|
|
433 |
|
|
|
|
|
|
|
447 |
|
|
|
|
|
|
|
440 |
|
|
|
|
|
Other investments |
|
|
2,989 |
|
|
|
|
|
|
|
3,096 |
|
|
|
|
|
|
|
2,999 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total investment portfolio |
|
$ |
61,759 |
|
|
|
|
|
|
$ |
61,445 |
|
|
|
|
|
|
$ |
60,918 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Avg. duration of fixed maturities |
|
|
4.1 years |
|
|
|
|
|
|
|
3.9 years |
|
|
|
|
|
|
|
4.0 years |
|
|
|
|
|
Avg. market yield of fixed maturities |
|
|
2.9 |
% |
|
|
|
|
|
|
2.6 |
% |
|
|
|
|
|
|
2.8 |
% |
|
|
|
|
Avg. credit quality |
|
|
A/Aa |
|
|
|
|
|
|
|
A/Aa |
|
|
|
|
|
|
|
A/Aa |
|
|
|
|
|
Avg. yield on invested assets |
|
|
3.6 |
% |
|
|
|
|
|
|
3.6 |
% |
|
|
|
|
|
|
3.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
ACE Limited
Investment Portfolio - 2
(in millions of U.S. dollars)
(Unaudited) |
|
|
Mortgage-backed Fixed Income Portfolio
Mortgage-backed securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
S&P Credit Rating |
|
|
|
AAA |
|
|
AA |
|
|
A |
|
|
BBB |
|
|
BB and below |
|
|
Total |
|
Market Value at June 30, 2015 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Agency residential mortgage-backed (RMBS) |
|
$ |
|
|
|
$ |
10,094 |
|
|
$ |
|
|
|
$ |
|
|
|
$ |
|
|
|
$ |
10,094 |
|
Non-agency RMBS |
|
|
29 |
|
|
|
5 |
|
|
|
15 |
|
|
|
10 |
|
|
|
13 |
|
|
|
72 |
|
Commercial mortgage-backed |
|
|
2,468 |
|
|
|
13 |
|
|
|
11 |
|
|
|
3 |
|
|
|
|
|
|
|
2,495 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total mortgage-backed securities at market value |
|
$ |
2,497 |
|
|
$ |
10,112 |
|
|
$ |
26 |
|
|
$ |
13 |
|
|
$ |
13 |
|
|
$ |
12,661 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Corporate and Asset-backed Fixed Income Portfolios
Market Value at June 30, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
S&P Credit Rating |
|
|
|
Investment Grade |
|
|
|
AAA |
|
|
AA |
|
|
A |
|
|
BBB |
|
|
Total |
|
Asset-backed |
|
$ |
657 |
|
|
$ |
62 |
|
|
$ |
|
|
|
$ |
|
|
|
$ |
719 |
|
Banks |
|
|
|
|
|
|
17 |
|
|
|
2,161 |
|
|
|
280 |
|
|
|
2,458 |
|
Basic Materials |
|
|
|
|
|
|
3 |
|
|
|
92 |
|
|
|
343 |
|
|
|
438 |
|
Communications |
|
|
|
|
|
|
57 |
|
|
|
205 |
|
|
|
972 |
|
|
|
1,234 |
|
Consumer, Cyclical |
|
|
|
|
|
|
98 |
|
|
|
416 |
|
|
|
497 |
|
|
|
1,011 |
|
Consumer, Non-Cyclical |
|
|
54 |
|
|
|
449 |
|
|
|
1,206 |
|
|
|
804 |
|
|
|
2,513 |
|
Diversified Financial Services |
|
|
|
|
|
|
43 |
|
|
|
304 |
|
|
|
104 |
|
|
|
451 |
|
Energy |
|
|
25 |
|
|
|
34 |
|
|
|
149 |
|
|
|
788 |
|
|
|
996 |
|
Industrial |
|
|
|
|
|
|
358 |
|
|
|
423 |
|
|
|
365 |
|
|
|
1,146 |
|
Utilities |
|
|
|
|
|
|
9 |
|
|
|
626 |
|
|
|
398 |
|
|
|
1,033 |
|
All Others |
|
|
81 |
|
|
|
247 |
|
|
|
500 |
|
|
|
556 |
|
|
|
1,384 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
$ |
817 |
|
|
$ |
1,377 |
|
|
$ |
6,082 |
|
|
$ |
5,107 |
|
|
$ |
13,383 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Market Value at June 30, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
S&P Credit Rating |
|
|
|
Below Investment Grade |
|
|
|
BB |
|
|
B |
|
|
CCC |
|
|
Total |
|
Asset-backed |
|
$ |
|
|
|
$ |
3 |
|
|
$ |
11 |
|
|
$ |
14 |
|
Banks |
|
|
1 |
|
|
|
6 |
|
|
|
|
|
|
|
7 |
|
Basic Materials |
|
|
154 |
|
|
|
101 |
|
|
|
4 |
|
|
|
259 |
|
Communications |
|
|
599 |
|
|
|
532 |
|
|
|
5 |
|
|
|
1,136 |
|
Consumer, Cyclical |
|
|
551 |
|
|
|
546 |
|
|
|
25 |
|
|
|
1,122 |
|
Consumer, Non-Cyclical |
|
|
567 |
|
|
|
837 |
|
|
|
33 |
|
|
|
1,437 |
|
Diversified Financial Services |
|
|
142 |
|
|
|
55 |
|
|
|
3 |
|
|
|
200 |
|
Energy |
|
|
463 |
|
|
|
206 |
|
|
|
15 |
|
|
|
684 |
|
Industrial |
|
|
381 |
|
|
|
359 |
|
|
|
12 |
|
|
|
752 |
|
Utilities |
|
|
219 |
|
|
|
68 |
|
|
|
|
|
|
|
287 |
|
All Others |
|
|
331 |
|
|
|
382 |
|
|
|
13 |
|
|
|
726 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
$ |
3,408 |
|
|
$ |
3,095 |
|
|
$ |
121 |
|
|
$ |
6,624 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ACE Limited
Investment Portfolio - 3
(in millions of U.S. dollars)
(Unaudited) |
|
|
Non-U.S. Fixed Income Portfolio
June 30,
2015
Non-U.S. Government Securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Market Value by S&P Credit Rating |
|
|
|
AAA |
|
|
AA |
|
|
A |
|
|
BBB |
|
|
BB and below |
|
|
Total |
|
United Kingdom |
|
$ |
1,082 |
|
|
$ |
|
|
|
$ |
|
|
|
$ |
|
|
|
$ |
|
|
|
$ |
1,082 |
|
Republic of Korea |
|
|
|
|
|
|
867 |
|
|
|
48 |
|
|
|
|
|
|
|
|
|
|
|
915 |
|
Federative Republic of Brazil |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
701 |
|
|
|
|
|
|
|
701 |
|
United Mexican States |
|
|
|
|
|
|
|
|
|
|
429 |
|
|
|
125 |
|
|
|
|
|
|
|
554 |
|
Canada |
|
|
481 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
481 |
|
Kingdom of Thailand |
|
|
|
|
|
|
|
|
|
|
375 |
|
|
|
|
|
|
|
|
|
|
|
375 |
|
Province of Ontario |
|
|
|
|
|
|
360 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
360 |
|
Province of Quebec |
|
|
|
|
|
|
|
|
|
|
255 |
|
|
|
|
|
|
|
|
|
|
|
255 |
|
Japan |
|
|
|
|
|
|
195 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
195 |
|
Australia |
|
|
187 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
187 |
|
Other Non-U.S. Government Securities |
|
|
534 |
|
|
|
886 |
|
|
|
325 |
|
|
|
362 |
|
|
|
555 |
|
|
|
2,662 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
$ |
2,284 |
|
|
$ |
2,308 |
|
|
$ |
1,432 |
|
|
$ |
1,188 |
|
|
$ |
555 |
|
|
$ |
7,767 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-U.S. Corporate Securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Market Value by S&P Credit Rating |
|
|
|
AAA |
|
|
AA |
|
|
A |
|
|
BBB |
|
|
BB and below |
|
|
Total |
|
United Kingdom |
|
$ |
118 |
|
|
$ |
45 |
|
|
$ |
617 |
|
|
$ |
547 |
|
|
$ |
196 |
|
|
$ |
1,523 |
|
Canada |
|
|
116 |
|
|
|
122 |
|
|
|
234 |
|
|
|
337 |
|
|
|
208 |
|
|
|
1,017 |
|
United States (1) |
|
|
1 |
|
|
|
90 |
|
|
|
106 |
|
|
|
235 |
|
|
|
196 |
|
|
|
628 |
|
Australia |
|
|
79 |
|
|
|
91 |
|
|
|
258 |
|
|
|
92 |
|
|
|
28 |
|
|
|
548 |
|
France |
|
|
35 |
|
|
|
61 |
|
|
|
211 |
|
|
|
177 |
|
|
|
37 |
|
|
|
521 |
|
Netherlands |
|
|
25 |
|
|
|
128 |
|
|
|
180 |
|
|
|
128 |
|
|
|
55 |
|
|
|
516 |
|
Germany |
|
|
91 |
|
|
|
19 |
|
|
|
113 |
|
|
|
135 |
|
|
|
25 |
|
|
|
383 |
|
Switzerland |
|
|
48 |
|
|
|
16 |
|
|
|
96 |
|
|
|
109 |
|
|
|
40 |
|
|
|
309 |
|
China |
|
|
|
|
|
|
151 |
|
|
|
78 |
|
|
|
32 |
|
|
|
9 |
|
|
|
270 |
|
Hong Kong |
|
|
9 |
|
|
|
6 |
|
|
|
163 |
|
|
|
9 |
|
|
|
7 |
|
|
|
194 |
|
Other Non-U.S. Corporate Securities |
|
|
270 |
|
|
|
274 |
|
|
|
704 |
|
|
|
584 |
|
|
|
491 |
|
|
|
2,323 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
$ |
792 |
|
|
$ |
1,003 |
|
|
$ |
2,760 |
|
|
$ |
2,385 |
|
|
$ |
1,292 |
|
|
$ |
8,232 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
Countries represent the ultimate parent companys country of risk. Non-U.S. corporate securities could be issued by foreign subsidiaries of U.S. corporations. |
|
|
|
|
|
|
|
ACE Limited
Investment Portfolio - 4
(in millions of U.S. dollars)
(Unaudited) |
|
|
Fixed Maturity Investment Portfolio
Top 10 Global Corporate Exposures
|
|
|
|
|
|
|
|
|
|
|
June 30, 2015 |
|
Market Value |
|
|
Rating |
1 |
|
JP Morgan Chase & Co |
|
$ |
472 |
|
|
A |
2 |
|
General Electric Co |
|
|
443 |
|
|
AA+ |
3 |
|
Goldman Sachs Group Inc |
|
|
328 |
|
|
A- |
4 |
|
Wells Fargo & Co |
|
|
267 |
|
|
A+ |
5 |
|
Bank of America Corp |
|
|
241 |
|
|
A- |
6 |
|
HSBC Holdings Plc |
|
|
236 |
|
|
A |
7 |
|
Verizon Communications Inc |
|
|
228 |
|
|
BBB+ |
8 |
|
Morgan Stanley |
|
|
227 |
|
|
A- |
9 |
|
AT&T INC |
|
|
209 |
|
|
BBB+ |
10 |
|
Ford Motor Co |
|
|
206 |
|
|
BBB- |
|
|
|
|
|
|
|
ACE Limited
Net Realized and Unrealized Gains (Losses)
(in millions of U.S. dollars)
(Unaudited) |
|
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Three months ended June 30, 2015 |
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|
Six months ended June 30, 2015 |
|
|
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Net Realized |
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|
Net Unrealized |
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|
|
|
Net Realized |
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|
Net Unrealized |
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|
|
|
Gains |
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|
Gains |
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Net |
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|
Gains |
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|
Gains |
|
|
Net |
|
|
|
(Losses) (1) |
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|
(Losses) |
|
|
Impact |
|
|
(Losses) (1) |
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|
(Losses) |
|
|
Impact |
|
Fixed maturities |
|
$ |
5 |
|
|
$ |
(832 |
) |
|
$ |
(827 |
) |
|
$ |
1 |
|
|
$ |
(393 |
) |
|
$ |
(392 |
) |
Fixed income derivatives |
|
|
27 |
|
|
|
|
|
|
|
27 |
|
|
|
28 |
|
|
|
|
|
|
|
28 |
|
Public equity |
|
|
29 |
|
|
|
(23 |
) |
|
|
6 |
|
|
|
30 |
|
|
|
(6 |
) |
|
|
24 |
|
Private equity |
|
|
27 |
|
|
|
5 |
|
|
|
32 |
|
|
|
40 |
|
|
|
(7 |
) |
|
|
33 |
|
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|
|
|
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|
|
|
|
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|
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|
|
|
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|
|
|
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Total investment portfolio |
|
|
88 |
|
|
|
(850 |
) |
|
|
(762 |
) |
|
|
99 |
|
|
|
(406 |
) |
|
|
(307 |
) |
Mark-to-market from variable annuity reinsurance derivative transactions, net of applicable hedges (2) |
|
|
102 |
|
|
|
|
|
|
|
102 |
|
|
|
45 |
|
|
|
|
|
|
|
45 |
|
Foreign exchange (3) |
|
|
(40 |
) |
|
|
136 |
|
|
|
96 |
|
|
|
(71 |
) |
|
|
(285 |
) |
|
|
(356 |
) |
Partially-owned entities (4) |
|
|
18 |
|
|
|
|
|
|
|
18 |
|
|
|
31 |
|
|
|
|
|
|
|
31 |
|
Other |
|
|
(7 |
) |
|
|
(6 |
) |
|
|
(13 |
) |
|
|
(6 |
) |
|
|
7 |
|
|
|
1 |
|
|
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|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net gains (losses) before tax |
|
|
161 |
|
|
|
(720 |
) |
|
|
(559 |
) |
|
|
98 |
|
|
|
(684 |
) |
|
|
(586 |
) |
Income tax expense (benefit) |
|
|
7 |
|
|
|
(175 |
) |
|
|
(168 |
) |
|
|
8 |
|
|
|
(100 |
) |
|
|
(92 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net gains (losses) |
|
$ |
154 |
|
|
$ |
(545 |
) |
|
$ |
(391 |
) |
|
$ |
90 |
|
|
$ |
(584 |
) |
|
$ |
(494 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
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|
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|
(1) |
Other-than-temporary impairments for the quarter includes $7 million for fixed maturities and $1 million for public equity. Year to date other-than-temporary impairments includes $20 million for fixed maturities and $1
million for public equities. |
(2) |
The quarter and year to date include $2 million and $14 million, respectively, of losses on applicable hedges. |
(3) |
Unrealized foreign exchange gain, after-tax, for the quarter was $132 million. Unrealized foreign exchange loss, after-tax, year to date was $278 million. |
(4) |
Partially-owned entities are investments where we hold more than an insignificant percentage of the investees shares. The net income or loss is included in other income (expense). |
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Three months ended June 30, 2014 |
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|
Six months ended June 30, 2014 |
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Net Realized |
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|
Net Unrealized |
|
|
|
|
|
Net Realized |
|
|
Net Unrealized |
|
|
|
|
|
|
Gains |
|
|
Gains |
|
|
Net |
|
|
Gains |
|
|
Gains |
|
|
Net |
|
|
|
(Losses) (5) |
|
|
(Losses) |
|
|
Impact |
|
|
(Losses) (5) |
|
|
(Losses) |
|
|
Impact |
|
Fixed maturities |
|
$ |
20 |
|
|
$ |
538 |
|
|
$ |
558 |
|
|
$ |
31 |
|
|
$ |
999 |
|
|
$ |
1,030 |
|
Fixed income derivatives |
|
|
(15 |
) |
|
|
|
|
|
|
(15 |
) |
|
|
(40 |
) |
|
|
|
|
|
|
(40 |
) |
Public equity |
|
|
1 |
|
|
|
24 |
|
|
|
25 |
|
|
|
(4 |
) |
|
|
34 |
|
|
|
30 |
|
Private equity |
|
|
36 |
|
|
|
6 |
|
|
|
42 |
|
|
|
92 |
|
|
|
48 |
|
|
|
140 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total investment portfolio |
|
|
42 |
|
|
|
568 |
|
|
|
610 |
|
|
|
79 |
|
|
|
1,081 |
|
|
|
1,160 |
|
Mark-to-market from variable annuity reinsurance derivative transactions, net of applicable hedges (6) |
|
|
(70 |
) |
|
|
|
|
|
|
(70 |
) |
|
|
(137 |
) |
|
|
|
|
|
|
(137 |
) |
Foreign exchange (7) |
|
|
(14 |
) |
|
|
153 |
|
|
|
139 |
|
|
|
(23 |
) |
|
|
120 |
|
|
|
97 |
|
Partially-owned entities (8) |
|
|
(3 |
) |
|
|
|
|
|
|
(3 |
) |
|
|
(8 |
) |
|
|
|
|
|
|
(8 |
) |
Other |
|
|
|
|
|
|
(5 |
) |
|
|
(5 |
) |
|
|
(7 |
) |
|
|
(13 |
) |
|
|
(20 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net gains (losses) before tax |
|
|
(45 |
) |
|
|
716 |
|
|
|
671 |
|
|
|
(96 |
) |
|
|
1,188 |
|
|
|
1,092 |
|
Income tax expense (benefit) |
|
|
1 |
|
|
|
147 |
|
|
|
148 |
|
|
|
(7 |
) |
|
|
245 |
|
|
|
238 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net gains (losses) |
|
$ |
(46 |
) |
|
$ |
569 |
|
|
$ |
523 |
|
|
$ |
(89 |
) |
|
$ |
943 |
|
|
$ |
854 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(5) |
Other-than-temporary impairments for the quarter includes $8 million for fixed maturities, $3 million for private equity and $1 million for public equity. Year to date other-than-temporary impairments includes $13
million for fixed maturities, $3 million for private equity, and $7 million for public equity. |
(6) |
The quarter and year to date include $72 million and $91 million, respectively, of losses on applicable hedges. |
(7) |
Unrealized foreign exchange gains, after-tax, for the quarter and year to date were $119 million and $78 million, respectively. |
(8) |
Partially-owned entities are investments where we hold more than an insignificant percentage of the investees shares. The net income or loss is included in other income (expense). |
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|
Net Gains (Losses) |
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Page 18 |
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ACE Limited
Capital Structure
(in millions of U.S. dollars, except ratios)
(Unaudited) |
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June 30 2015 |
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|
March 31 2015 |
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|
December 31 2014 |
|
|
December 31 2013 |
|
Total short-term debt (1) (2) |
|
$ |
2,102 |
|
|
$ |
2,552 |
|
|
$ |
2,552 |
|
|
$ |
1,901 |
|
Total long-term debt |
|
|
4,157 |
|
|
|
4,157 |
|
|
|
3,357 |
|
|
|
3,807 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total debt |
|
$ |
6,259 |
|
|
$ |
6,709 |
|
|
$ |
5,909 |
|
|
$ |
5,708 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total trust preferred securities |
|
$ |
309 |
|
|
$ |
309 |
|
|
$ |
309 |
|
|
$ |
309 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total shareholders equity |
|
$ |
29,555 |
|
|
$ |
29,702 |
|
|
$ |
29,587 |
|
|
$ |
28,825 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total capitalization |
|
$ |
36,123 |
|
|
$ |
36,720 |
|
|
$ |
35,805 |
|
|
$ |
34,842 |
|
Tangible capital (3) |
|
$ |
30,154 |
|
|
$ |
31,204 |
|
|
$ |
30,081 |
|
|
$ |
29,438 |
|
Leverage ratios |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Debt/ total capitalization |
|
|
17.3 |
% |
|
|
18.3 |
% |
|
|
16.5 |
% |
|
|
16.4 |
% |
Debt plus trust preferred securities/ total capitalization |
|
|
18.2 |
% |
|
|
19.1 |
% |
|
|
17.4 |
% |
|
|
17.3 |
% |
Debt/ tangible capital |
|
|
20.8 |
% |
|
|
21.5 |
% |
|
|
19.6 |
% |
|
|
19.4 |
% |
Debt plus trust preferred securities/ tangible capital |
|
|
21.8 |
% |
|
|
22.5 |
% |
|
|
20.7 |
% |
|
|
20.4 |
% |
Note: As of June 30, 2015, there was $0.5 billion usage of credit facilities on a total commitment of $1.0 billion.
(1) |
In May 2015, $450 million of 5.6 percent senior notes matured and were fully paid. |
(2) |
Repurchase agreements in the amount of $850 million matured during the quarter, and there were new repurchase agreements in the amount of $850 million. |
(3) |
Tangible capital is equal to total capitalization less goodwill and other intangible assets. |
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|
Capital Structure |
|
Page 19 |
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|
ACE Limited
Computation of Basic and Diluted Earnings Per Share
(in millions of U.S. dollars, except share and per share data)
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended June 30 |
|
|
Six months ended June 30 |
|
|
|
2015 |
|
|
2014 |
|
|
2015 |
|
|
2014 |
|
Numerator |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income to common shares |
|
$ |
788 |
|
|
$ |
825 |
|
|
$ |
1,533 |
|
|
$ |
1,602 |
|
Adjusted net realized gains (losses), net of income tax |
|
|
154 |
|
|
|
(46 |
) |
|
|
90 |
|
|
|
(89 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
$ |
942 |
|
|
$ |
779 |
|
|
$ |
1,623 |
|
|
$ |
1,513 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rollforward of Common Shares Outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares - beginning of period |
|
|
327,084,762 |
|
|
|
337,974,644 |
|
|
|
328,659,686 |
|
|
|
339,793,935 |
|
Repurchase of shares (1) |
|
|
(3,650,200 |
) |
|
|
(2,306,000 |
) |
|
|
(6,677,663 |
) |
|
|
(5,793,882 |
) |
Shares issued, excluding option exercises |
|
|
107,071 |
|
|
|
135,079 |
|
|
|
1,118,101 |
|
|
|
1,311,675 |
|
Issued for option exercises |
|
|
272,648 |
|
|
|
421,866 |
|
|
|
714,157 |
|
|
|
913,861 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares - end of period |
|
|
323,814,281 |
|
|
|
336,225,589 |
|
|
|
323,814,281 |
|
|
|
336,225,589 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Denominator |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares outstanding |
|
|
325,463,196 |
|
|
|
337,846,228 |
|
|
|
326,795,838 |
|
|
|
338,353,260 |
|
Effect of other dilutive securities |
|
|
3,222,562 |
|
|
|
3,286,359 |
|
|
|
3,373,809 |
|
|
|
3,267,499 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adj. wtd. avg. shares outstanding and assumed conversions |
|
|
328,685,758 |
|
|
|
341,132,587 |
|
|
|
330,169,647 |
|
|
|
341,620,759 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income |
|
$ |
2.42 |
|
|
$ |
2.44 |
|
|
$ |
4.69 |
|
|
$ |
4.73 |
|
Adjusted net realized gains (losses), net of income tax |
|
|
0.47 |
|
|
|
(0.14 |
) |
|
|
0.28 |
|
|
|
(0.26 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
$ |
2.89 |
|
|
$ |
2.30 |
|
|
$ |
4.97 |
|
|
$ |
4.47 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income |
|
$ |
2.40 |
|
|
$ |
2.42 |
|
|
$ |
4.64 |
|
|
$ |
4.69 |
|
Adjusted net realized gains (losses), net of income tax |
|
|
0.46 |
|
|
|
(0.14 |
) |
|
|
0.27 |
|
|
|
(0.26 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
$ |
2.86 |
|
|
$ |
2.28 |
|
|
$ |
4.91 |
|
|
$ |
4.43 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share |
|
Page 20 |
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|
|
ACE Limited
Book Value and Book Value per Common Share
(in millions of U.S. dollars, except share and per share data)
(Unaudited) |
|
|
Reconciliation of Book Value per Common Share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30 |
|
|
March 31 |
|
|
December 31 |
|
|
June 30 |
|
|
|
2015 |
|
|
2015 |
|
|
2014 |
|
|
2014 |
|
Shareholders equity |
|
$ |
29,555 |
|
|
$ |
29,702 |
|
|
$ |
29,587 |
|
|
$ |
30,325 |
|
Less: goodwill and other intangible assets |
|
|
5,969 |
|
|
|
5,516 |
|
|
|
5,724 |
|
|
|
5,522 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Numerator for tangible book value per share |
|
$ |
23,586 |
|
|
$ |
24,186 |
|
|
$ |
23,863 |
|
|
$ |
24,803 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Book value - % change over prior quarter |
|
|
-0.5 |
% |
|
|
0.4 |
% |
|
|
-1.4 |
% |
|
|
3.3 |
% |
Tangible book value - % change over prior quarter |
|
|
-2.5 |
% |
|
|
1.4 |
% |
|
|
-3.0 |
% |
|
|
3.4 |
% |
Denominator |
|
|
323,814,281 |
|
|
|
327,084,762 |
|
|
|
328,659,686 |
|
|
|
336,225,589 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Book value per common share |
|
$ |
91.27 |
|
|
$ |
90.81 |
|
|
$ |
90.02 |
|
|
$ |
90.19 |
|
Tangible book value per common share |
|
$ |
72.84 |
|
|
$ |
73.94 |
|
|
$ |
72.61 |
|
|
$ |
73.77 |
|
Reconciliation of Book Value |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders equity, beginning of quarter |
|
$ |
29,702 |
|
|
$ |
29,587 |
|
|
$ |
30,017 |
|
|
$ |
29,369 |
|
Operating income |
|
|
788 |
|
|
|
745 |
|
|
|
827 |
|
|
|
825 |
|
Adjusted net realized gains (losses), net of tax |
|
|
154 |
|
|
|
(64 |
) |
|
|
(272 |
) |
|
|
(46 |
) |
Net unrealized gains (losses), net of tax |
|
|
(672 |
) |
|
|
361 |
|
|
|
94 |
|
|
|
453 |
|
Repurchase of shares |
|
|
(394 |
) |
|
|
(340 |
) |
|
|
(430 |
) |
|
|
(237 |
) |
Dividend declared on common shares |
|
|
(217 |
) |
|
|
(222 |
) |
|
|
(223 |
) |
|
|
(223 |
) |
Cumulative translation, net of tax |
|
|
132 |
|
|
|
(410 |
) |
|
|
(520 |
) |
|
|
119 |
|
Pension liability |
|
|
(5 |
) |
|
|
10 |
|
|
|
9 |
|
|
|
(3 |
) |
Other (1) |
|
|
67 |
|
|
|
35 |
|
|
|
85 |
|
|
|
68 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
29,555 |
|
|
$ |
29,702 |
|
|
$ |
29,587 |
|
|
$ |
30,325 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
Other primarily includes proceeds from exercise of stock options and stock compensation. |
|
|
|
Reconciliation Book Value |
|
Page 21 |
|
|
|
|
|
|
|
ACE Limited
Non-GAAP Financial Measures
(in millions of U.S. dollars)
(Unaudited) |
|
|
Regulation G - Non-GAAP Financial Measures
In presenting our results, we included and discussed certain non-GAAP measures. These non-GAAP measures, which may be defined differently by other
companies, are important for an understanding of our overall results of operations and financial condition. However, they should not be viewed as a substitute for measures determined in accordance with generally accepted accounting principles
(GAAP).
We provide financial measures such as gross premiums written, net premiums written, net premiums earned, and operating income on a
constant-dollar basis. We believe it is useful to evaluate the trends in these measures exclusive of the effect of fluctuations in exchange rates between the U.S. dollar and the currencies in which our international business is transacted, as these
exchange rates could fluctuate significantly between periods and distort the analysis of trends. The impact is determined by assuming constant foreign exchange rates between periods by translating prior period results using the same local currency
exchange rates as the comparable current period.
Adjusted net realized gains (losses) is a non-GAAP financial measure that excludes realized gains and
losses on crop derivatives. These derivatives were purchased to provide economic benefit, in a manner similar to reinsurance protection, in the event that a significant decline in commodity pricing will impact underwriting results. We view gains and
losses on these derivatives as part of the results of our underwriting operations and therefore realized gains and losses from these derivatives are reclassified to Adjusted losses and loss expenses (a non-GAAP financial measure). Adjusted losses
and loss expenses include gains and losses on crop derivatives. P&C loss and loss expense ratio and P&C combined ratio (both non-GAAP financial measures) include adjusted losses and loss expenses in the ratio numerator. A reconciliation of
GAAP combined ratio to P&C combined ratio is provided on page 24.
In presenting our segment operating results, we have shown our performance with
reference to underwriting results. Underwriting results are calculated by subtracting losses and loss expenses, policy benefits, policy acquisition costs, and administrative expenses from net premiums earned. We use underwriting results and
operating ratios to monitor the results of our operations without the impact of certain factors, including investment income, other income and expenses, interest and income tax expense, and net realized gains (losses). P&C underwriting income is
a non-GAAP financial measure which includes Adjusted losses and loss expenses. Insurance North American Agriculture underwriting income includes gains (losses) on crop derivatives. Life underwriting income includes net investment income and
gains (losses) from fair value changes in separate account assets that do not qualify for separate account reporting under GAAP.
Operating income or
income excluding adjusted net realized gains (losses), net of tax, is a common performance measurement for insurance companies and non-GAAP financial measure. We believe this presentation enhances the understanding of our results of operations by
highlighting the underlying profitability of our insurance business. We exclude adjusted net realized gains (losses) and net realized gains (losses) included in other income (expense) related to partially owned entities because the amount of these
gains (losses) is heavily influenced by, and fluctuates in part according to, the availability of market opportunities. Operating income or income excluding adjusted net realized gains (losses) should not be viewed as a substitute for net income
determined in accordance with GAAP.
Other income (expense) operating is a non-GAAP financial measure and excludes the portion of net realized
gains and losses related to unconsolidated entities from other income (expense). These gains and losses are reported as Net realized gains (losses) and represent the non-operating activities of entities where we hold more than an insignificant
percentage of the investees shares. We exclude these gains and losses from other income (expense) to enhance the understanding of our core results of operations as they are heavily influenced by, and fluctuate in part according to market
conditions. A reconciliation of Consolidated Other income (expense) on a GAAP basis to Consolidated Other income (expense)operating is provided on page 24.
P&C combined ratio excluding catastrophe losses and prior period development (PPD) is a non-GAAP financial measure. The ratio numerator includes adjusted
losses and loss expenses, policy acquisition costs, and administrative expenses adjusted to exclude catastrophe losses and PPD. The ratio denominator includes net premiums earned adjusted to exclude the amount of reinstatement premiums (expensed)
collected and net earned premium adjustments on loss sensitive policies. We believe that excluding the impact of catastrophe losses and PPD provides a better evaluation of our core underwriting performance and enhances the understanding of the
trends in our property & casualty business that may be obscured by these items.
P&C loss and loss expense ratio excluding the impact of
catastrophe losses and PPD is a non-GAAP financial measure. The loss ratio numerator includes adjusted losses and loss expenses adjusted to exclude catastrophe losses and PPD. The loss ratio denominator includes Net premiums earned adjusted to
exclude the amount of reinstatement premiums (expensed) collected. In periods where there are adjustments on loss sensitive policies, these adjustments are excluded from PPD and net earned premiums when calculating this ratio. We believe that
excluding the impact of catastrophe losses and PPD provides a better evaluation of our core underwriting performance and enhances the understanding of the trends in our property & casualty business that may be obscured by these items.
P&C expense ratio excluding accident and health (A&H) is a non-GAAP financial measure and excludes the impact of our A&H business from our
consolidated expense ratio. The expense ratio for the A&H business is typically higher than our traditional P&C business, and we believe that this measure provides better comparison to our peer companies that may not have a significant
A&H block of business.
Global P&C performance metrics are non-GAAP financial measures and comprise consolidated operating results (including
corporate) and exclude the operating results of the companys Life and Insurance North American Agriculture segments. We believe that these measures are useful and meaningful to investors as they are used by management to assess the
companys global P&C operations which are the most economically similar. We exclude the Insurance North American Agriculture and Life segments because the results of these businesses do not always correlate with the results of our
global P&C operations.
International life insurance net premiums written and deposits collected, is a non-GAAP financial measure. Deposits collected
on universal life and investment contracts (life deposits) are not reflected as revenues in our consolidated statements of operations in accordance with GAAP. However, we include life deposits in presenting growth in our life insurance business
because new life deposits are an important component of production and key to our efforts to grow our business.
Operating return on equity (ROE) or ROE
calculated using operating income is an annualized non-GAAP financial measure and is calculated as operating income divided by average shareholders equity, as adjusted, for the period. To annualize a quarterly rate, multiply by four. Operating
ROE is a useful measure as it enhances the understanding of the return on shareholders equity by highlighting the underlying profitability relative to shareholders equity excluding the effect of unrealized gains and losses on our
investments.
Operating effective tax rate is a non-GAAP financial measure. The numerator excludes tax on adjusted net realized gains (losses). The
denominator excludes adjusted net realized gains (losses), before tax. We exclude adjusted net realized gains (losses) and the related tax impact because these amounts are heavily influenced by, and fluctuate in part according to, the availability
of market opportunities. Operating effective tax rate should not be viewed as a substitute for effective tax rate determined in accordance with GAAP.
Tangible book value per common share is a non-GAAP financial measure and is shareholders equity less goodwill and other intangible assets divided by the
shares outstanding. We believe that goodwill and other intangible assets are not indicative of our underlying insurance results or trends and make book value comparisons to less acquisitive peer companies less meaningful. A reconciliation of
tangible book value per share is provided on page 21. Tangible book value per common share excluding 2014 acquisitions is shareholders equity less goodwill and other intangible assets divided by the shares outstanding. The numerator adds back
the goodwill and other intangible assets related to the acquisition of the Firemans Fund high net worth personal lines insurance business in the United States in order to adjust for the distortive effect of acquisitions. In addition, we
disclose per share measures that exclude the impact of foreign currency fluctuations during 2015 in order to adjust for the distortive effects of fluctuations in exchange rates.
|
|
|
Reconciliation Non-GAAP |
|
Page 22 |
|
|
|
|
|
|
|
ACE Limited
Non-GAAP Financial Measures - 2
(in millions of U.S. dollars, except ratios)
(Unaudited) |
|
|
Regulation G - Non-GAAP Financial Measures
(continued)
Operating income
Operating income is a common performance measure for insurance companies and is presented throughout this report.
The following table presents the reconciliation of Net income to Operating income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
YTD |
|
|
YTD |
|
|
Full Year |
|
|
|
2Q-15 |
|
|
1Q-15 |
|
|
4Q-14 |
|
|
3Q-14 |
|
|
2Q-14 |
|
|
2015 |
|
|
2014 |
|
|
2014 |
|
Net income, as reported |
|
$ |
942 |
|
|
$ |
681 |
|
|
$ |
555 |
|
|
$ |
785 |
|
|
$ |
779 |
|
|
$ |
1,623 |
|
|
$ |
1,513 |
|
|
$ |
2,853 |
|
Adjusted net realized gains (losses) |
|
|
128 |
|
|
|
(89 |
) |
|
|
(210 |
) |
|
|
(165 |
) |
|
|
(81 |
) |
|
|
39 |
|
|
|
(183 |
) |
|
|
(558 |
) |
Net realized gains (losses) related to unconsolidated entities (1) |
|
|
33 |
|
|
|
26 |
|
|
|
49 |
|
|
|
55 |
|
|
|
36 |
|
|
|
59 |
|
|
|
87 |
|
|
|
191 |
|
Income tax expense (benefit) on adjusted net realized gains (losses) |
|
|
7 |
|
|
|
1 |
|
|
|
111 |
|
|
|
(4 |
) |
|
|
1 |
|
|
|
8 |
|
|
|
(7 |
) |
|
|
100 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income |
|
$ |
788 |
|
|
$ |
745 |
|
|
$ |
827 |
|
|
$ |
891 |
|
|
$ |
825 |
|
|
$ |
1,533 |
|
|
$ |
1,602 |
|
|
$ |
3,320 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
Realized gains (losses) on partially-owned entities, which are investments where we hold more than an insignificant percentage of the investees shares. The net income or loss is included in other income (expense).
|
The following table presents the Operating income (loss) of each segment and Corporate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
YTD |
|
|
YTD |
|
|
Full Year |
|
|
|
2Q-15 |
|
|
1Q-15 |
|
|
4Q-14 |
|
|
3Q-14 |
|
|
2Q-14 |
|
|
2015 |
|
|
2014 |
|
|
2014 |
|
Insurance North American P&C |
|
$ |
395 |
|
|
$ |
345 |
|
|
$ |
372 |
|
|
$ |
337 |
|
|
$ |
378 |
|
|
$ |
740 |
|
|
$ |
789 |
|
|
$ |
1,498 |
|
Insurance Overseas General |
|
|
240 |
|
|
|
241 |
|
|
|
294 |
|
|
|
348 |
|
|
|
282 |
|
|
|
481 |
|
|
|
521 |
|
|
|
1,163 |
|
Global Reinsurance |
|
|
145 |
|
|
|
128 |
|
|
|
127 |
|
|
|
145 |
|
|
|
146 |
|
|
|
273 |
|
|
|
290 |
|
|
|
562 |
|
Corporate |
|
|
(74 |
) |
|
|
(70 |
) |
|
|
(87 |
) |
|
|
(68 |
) |
|
|
(72 |
) |
|
|
(144 |
) |
|
|
(141 |
) |
|
|
(296 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Global P&C (including Corporate) |
|
|
706 |
|
|
|
644 |
|
|
|
706 |
|
|
|
762 |
|
|
|
734 |
|
|
|
1,350 |
|
|
|
1,459 |
|
|
|
2,927 |
|
Insurance North American Agriculture |
|
|
15 |
|
|
|
35 |
|
|
|
45 |
|
|
|
57 |
|
|
|
19 |
|
|
|
50 |
|
|
|
(6 |
) |
|
|
96 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Results (including Corporate) Excluding Life Segment |
|
|
721 |
|
|
|
679 |
|
|
|
751 |
|
|
|
819 |
|
|
|
753 |
|
|
|
1,400 |
|
|
|
1,453 |
|
|
|
3,023 |
|
Life |
|
|
67 |
|
|
|
66 |
|
|
|
76 |
|
|
|
72 |
|
|
|
72 |
|
|
|
133 |
|
|
|
149 |
|
|
|
297 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated operating income |
|
$ |
788 |
|
|
$ |
745 |
|
|
$ |
827 |
|
|
$ |
891 |
|
|
$ |
825 |
|
|
$ |
1,533 |
|
|
$ |
1,602 |
|
|
$ |
3,320 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating ROE
The following table presents the reconciliation of ROE to Operating ROE:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
YTD |
|
|
YTD |
|
|
Full Year |
|
|
|
2Q-15 |
|
|
2Q-14 |
|
|
2015 |
|
|
2014 |
|
|
2014 |
|
Net income |
|
$ |
942 |
|
|
$ |
779 |
|
|
$ |
1,623 |
|
|
$ |
1,513 |
|
|
$ |
2,853 |
|
Operating income |
|
$ |
788 |
|
|
$ |
825 |
|
|
$ |
1,533 |
|
|
$ |
1,602 |
|
|
$ |
3,320 |
|
Equity - beginning of period, as reported |
|
$ |
29,702 |
|
|
$ |
29,369 |
|
|
$ |
29,587 |
|
|
$ |
28,825 |
|
|
$ |
28,825 |
|
Less: unrealized gains (losses) on investments, net of deferred tax |
|
|
2,212 |
|
|
|
1,594 |
|
|
|
1,851 |
|
|
|
1,174 |
|
|
|
1,174 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity - beginning of period, as adjusted |
|
$ |
27,490 |
|
|
$ |
27,775 |
|
|
$ |
27,736 |
|
|
$ |
27,651 |
|
|
$ |
27,651 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity - end of period, as reported |
|
$ |
29,555 |
|
|
$ |
30,325 |
|
|
$ |
29,555 |
|
|
$ |
30,325 |
|
|
$ |
29,587 |
|
Less: unrealized gains (losses) on investments, net of deferred tax |
|
|
1,540 |
|
|
|
2,047 |
|
|
|
1,540 |
|
|
|
2,047 |
|
|
|
1,851 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity - end of period, as adjusted |
|
$ |
28,015 |
|
|
$ |
28,278 |
|
|
$ |
28,015 |
|
|
$ |
28,278 |
|
|
$ |
27,736 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average equity, as reported |
|
$ |
29,629 |
|
|
$ |
29,847 |
|
|
$ |
29,571 |
|
|
$ |
29,575 |
|
|
$ |
29,206 |
|
Average equity, as adjusted |
|
$ |
27,753 |
|
|
$ |
28,027 |
|
|
$ |
27,876 |
|
|
$ |
27,965 |
|
|
$ |
27,694 |
|
Operating ROE |
|
|
11.4 |
% |
|
|
11.8 |
% |
|
|
11.0 |
% |
|
|
11.5 |
% |
|
|
12.0 |
% |
ROE |
|
|
12.7 |
% |
|
|
10.4 |
% |
|
|
11.0 |
% |
|
|
10.2 |
% |
|
|
9.8 |
% |
|
|
|
Reconciliation Non-GAAP 2 |
|
Page 23 |
|
|
|
|
|
|
|
ACE Limited
Non-GAAP Financial Measures - 3
(in millions of U.S. dollars, except ratios)
(Unaudited) |
|
|
Regulation G - Non-GAAP Financial Measures
(continued)
Operating effective tax rate
The following table presents the reconciliation of effective tax rate to the operating effective tax rate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
YTD |
|
|
YTD |
|
|
Full Year |
|
|
|
2Q-15 |
|
|
1Q-15 |
|
|
4Q-14 |
|
|
3Q-14 |
|
|
2Q-14 |
|
|
2015 |
|
|
2014 |
|
|
2014 |
|
Tax expense, as reported |
|
$ |
143 |
|
|
$ |
120 |
|
|
$ |
232 |
|
|
$ |
176 |
|
|
$ |
133 |
|
|
$ |
263 |
|
|
$ |
226 |
|
|
$ |
634 |
|
Tax expense (benefit) on adjusted net realized gains (losses) |
|
|
7 |
|
|
|
1 |
|
|
|
111 |
|
|
|
(4 |
) |
|
|
1 |
|
|
|
8 |
|
|
|
(7 |
) |
|
|
100 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax expense, adjusted |
|
$ |
136 |
|
|
$ |
119 |
|
|
$ |
121 |
|
|
$ |
180 |
|
|
$ |
132 |
|
|
$ |
255 |
|
|
$ |
233 |
|
|
$ |
534 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before tax, as reported |
|
$ |
1,085 |
|
|
$ |
801 |
|
|
$ |
787 |
|
|
$ |
961 |
|
|
$ |
912 |
|
|
$ |
1,886 |
|
|
$ |
1,739 |
|
|
$ |
3,487 |
|
Less: adjusted realized gains (losses) |
|
|
128 |
|
|
|
(89 |
) |
|
|
(210 |
) |
|
|
(165 |
) |
|
|
(81 |
) |
|
|
39 |
|
|
|
(183 |
) |
|
|
(558 |
) |
Less: realized gains (losses) related to unconsolidated entities |
|
|
33 |
|
|
|
26 |
|
|
|
49 |
|
|
|
55 |
|
|
|
36 |
|
|
|
59 |
|
|
|
87 |
|
|
|
191 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income before tax |
|
$ |
924 |
|
|
$ |
864 |
|
|
$ |
948 |
|
|
$ |
1,071 |
|
|
$ |
957 |
|
|
$ |
1,788 |
|
|
$ |
1,835 |
|
|
$ |
3,854 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effective tax rate |
|
|
13.2 |
% |
|
|
15.0 |
% |
|
|
29.5 |
% |
|
|
18.3 |
% |
|
|
14.6 |
% |
|
|
13.9 |
% |
|
|
13.0 |
% |
|
|
18.2 |
% |
Adjustment for tax impact of adjusted net realized gains (losses) |
|
|
1.5 |
% |
|
|
-1.3 |
% |
|
|
-16.8 |
% |
|
|
-1.4 |
% |
|
|
-0.9 |
% |
|
|
0.3 |
% |
|
|
-0.3 |
% |
|
|
-4.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating effective tax rate |
|
|
14.7 |
% |
|
|
13.7 |
% |
|
|
12.7 |
% |
|
|
16.9 |
% |
|
|
13.7 |
% |
|
|
14.2 |
% |
|
|
12.7 |
% |
|
|
13.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income (expense) - operating
The following table presents the reconciliation of Consolidated Other income (expense) on a GAAP basis to Consolidated Other income (expense) - operating.
Other income (expense) operating is a non-GAAP financial measure which excludes gains (losses) from fair value changes in separate account assets that do not qualify for separate account reporting under GAAP and the portion of net realized
gains and losses related to unconsolidated entities. Gains (losses) from fair value changes in separate account assets are reclassified from Other income (expense) for purposes of presenting Life underwriting income, as the offsetting movement in
the separate account liabilities is included in Policy benefits. Net realized gains (losses) related to unconsolidated entities is excluded from operating income in order to enhance the understanding of our core results of operations as they are
heavily influenced by, and fluctuate in part according to market conditions.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
YTD |
|
|
YTD |
|
|
Full Year |
|
|
|
2Q-15 |
|
|
1Q-15 |
|
|
4Q-14 |
|
|
3Q-14 |
|
|
2Q-14 |
|
|
2015 |
|
|
2014 |
|
|
2014 |
|
Consolidated GAAP Other income (expense): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated excluding Life segment |
|
$ |
(40 |
) |
|
$ |
(18 |
) |
|
$ |
18 |
|
|
$ |
22 |
|
|
$ |
12 |
|
|
$ |
(58 |
) |
|
$ |
42 |
|
|
$ |
82 |
|
Life segment |
|
|
23 |
|
|
|
23 |
|
|
|
3 |
|
|
|
(3 |
) |
|
|
13 |
|
|
|
46 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated |
|
|
(17 |
) |
|
|
5 |
|
|
|
21 |
|
|
|
19 |
|
|
|
25 |
|
|
|
(12 |
) |
|
|
42 |
|
|
|
82 |
|
Less: Gains (losses) from fair value changes in separate account assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated excluding Life segment |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Life segment |
|
|
6 |
|
|
|
11 |
|
|
|
(3 |
) |
|
|
(6 |
) |
|
|
17 |
|
|
|
17 |
|
|
|
11 |
|
|
|
2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated |
|
|
6 |
|
|
|
11 |
|
|
|
(3 |
) |
|
|
(6 |
) |
|
|
17 |
|
|
|
17 |
|
|
|
11 |
|
|
|
2 |
|
Less: Net realized gains (losses) related to unconsolidated entities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated excluding Life segment |
|
|
16 |
|
|
|
12 |
|
|
|
43 |
|
|
|
51 |
|
|
|
38 |
|
|
|
28 |
|
|
|
91 |
|
|
|
185 |
|
Life segment |
|
|
17 |
|
|
|
14 |
|
|
|
6 |
|
|
|
4 |
|
|
|
(2 |
) |
|
|
31 |
|
|
|
(4 |
) |
|
|
6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated |
|
|
33 |
|
|
|
26 |
|
|
|
49 |
|
|
|
55 |
|
|
|
36 |
|
|
|
59 |
|
|
|
87 |
|
|
|
191 |
|
Consolidated Other income (expense) - operating: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated excluding Life segment |
|
|
(56 |
) |
|
|
(30 |
) |
|
|
(25 |
) |
|
|
(29 |
) |
|
|
(26 |
) |
|
|
(86 |
) |
|
|
(49 |
) |
|
|
(103 |
) |
Life segment |
|
|
|
|
|
|
(2 |
) |
|
|
|
|
|
|
(1 |
) |
|
|
(2 |
) |
|
|
(2 |
) |
|
|
(7 |
) |
|
|
(8 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated |
|
$ |
(56 |
) |
|
$ |
(32 |
) |
|
$ |
(25 |
) |
|
$ |
(30 |
) |
|
$ |
(28 |
) |
|
$ |
(88 |
) |
|
$ |
(56 |
) |
|
$ |
(111 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
P&C combined ratio
The following table presents the reconciliation of GAAP combined ratio to P&C combined ratio. The P&C combined ratio includes the impact of realized
gains and losses on crop derivatives. These derivatives were purchased to provide economic benefit, in a manner similar to reinsurance protection, in the event that a significant decline in commodity pricing will impact underwriting results. We view
gains and losses on these derivatives as part of the results of our underwriting operations.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
YTD |
|
|
YTD |
|
|
Full Year |
|
|
|
2Q-15 |
|
|
1Q-15 |
|
|
4Q-14 |
|
|
3Q-14 |
|
|
2Q-14 |
|
|
2015 |
|
|
2014 |
|
|
2014 |
|
GAAP combined ratio |
|
|
87.6 |
% |
|
|
88.4 |
% |
|
|
88.5 |
% |
|
|
87.3 |
% |
|
|
87.7 |
% |
|
|
88.0 |
% |
|
|
88.2 |
% |
|
|
88.1 |
% |
Impact of gains and losses on crop derivatives |
|
|
0.1 |
% |
|
|
0.0 |
% |
|
|
0.0 |
% |
|
|
-1.0 |
% |
|
|
-0.2 |
% |
|
|
0.0 |
% |
|
|
0.0 |
% |
|
|
-0.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
P&C combined ratio |
|
|
87.7 |
% |
|
|
88.4 |
% |
|
|
88.5 |
% |
|
|
86.3 |
% |
|
|
87.5 |
% |
|
|
88.0 |
% |
|
|
88.2 |
% |
|
|
87.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation Non-GAAP 3 |
|
Page 24 |
|
|
|
|
|
|
|
ACE Limited
Glossary |
|
|
ACE Limited Consolidated comprises all
segments including Corporate.
Operating return on equity (ROE) or ROE calculated using income excluding adjusted net realized gains (losses):
Operating income or income excluding adjusted net realized gains (losses), net of tax, divided by average shareholders equity for the period excluding unrealized gains (losses) on investments, net of tax. To annualize a quarterly rate multiply
by four.
Book value per common share: Shareholders equity divided by the shares outstanding.
Combined ratio: The sum of the loss and loss expense ratio, acquisition cost ratio and the administrative expense ratio excluding life business.
Operating effective tax rate: Income tax expense excluding tax expense (benefit) on adjusted net realized gains (losses) divided by income excluding
adjusted net realized gains (losses) before tax.
Life underwriting income: Net premiums earned and net investment income less losses and loss
expenses, policy benefits, acquisition costs, and administrative expenses. In addition, Life underwriting income includes gains/losses from fair value changes in separate account assets that do not qualify for separate account reporting under GAAP.
Tangible book value per common share: Shareholders equity less goodwill and other intangible assets divided by the shares outstanding.
Average market yield of fixed maturities: Weighted average yield to maturity of our fixed income portfolio based on the market prices of the holdings
as of that date.
Average yield on invested assets: Net investment income divided by average cost of fixed maturities and other investments, and
average market value of equity securities.
Tangible capital: Total capitalization less goodwill and other intangible assets.
Total capitalization: Short-term debt, long-term debt, trust preferreds, and shareholders equity.
NM: Not meaningful.
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