ACE will continue to discuss these matters with various regulators whose investigations are ongoing, he noted during an analyst conference call to discuss ACE's 2005 first-quarter results.

Mr. Greenberg also defended ACE's sale of finite products, which have drawn attention because, when not structured to properly transfer risk, they are in violation of accounting rules and can provide an improper picture of company finances.

“We are still writing finite. It continues to generate income and revenue, but it's very slow, as you can imagine,” he said. “We continue to believe these products will have an appropriate place in managing risks.”

The Bermuda-based ACE posted $433 million in net income, down 3 percent from a year ago, but the insurer said it reached a new record level on an operating-income basis, which excludes net realized gains and losses. First-quarter operating income was $441 million–up 7.3 percent.

Overall underwriting income for the quarter fell 7.5 percent to $311 million. The combined ratio was still a stellar 89.2, though deteriorating slightly from 88.4. The results also included some $30 million of investigation-related expenses.

Net written premiums came in at $3.365 billion, increasing 4 percent, but the insurer observed that growth has been slowing in line with softening prices.

“Our North American operations experienced good growth in the quarter, primarily driven by our risk management, crop insurance, workers' comp, medical malpractice and international risk businesses,” Mr. Greenberg said. Most other classes, however–particularly excess casualty, directors and officers coverage, and property–were flat to down, he said.

“Earned premium growth was strong while net premium growth slowed in line with market conditions. The market continues to soften,” Mr. Greenberg told analysts. “Premium revenues in a number of our businesses were flat to down. We simply refuse to chase underpriced business.”

Brian Meredith, insurance analyst at Banc of America Securities, said ACE operating results were in line with his estimate. He observed that while ACE's underwriting margins remained strong, top-line growth fell below expectations.

“Competition is continuing and new business growth is challenging,” he said.

“Premium revenues in a number of our businesses were flat to down. We simply refuse to chase underpriced business.”

Evan Greenberg, CEO, ACE Ltd.