Ace Ltd. reported fourth-quarter earnings today that declined 15 percent due in part to hurricane-related losses.
Net income for the Bermuda-based reinsurer fell in the final 2005 period to $237 million from $278 million in the final quarter of 2004.
Bank of America analyst Brian Meredith called the results “strong” and noted financial services earnings were better than expected.
“The insurer should benefit from a firm pricing environment, as it is one of the leading writers of national account property insurance, property insurance, and energy and marine business–lines that should see the biggest price increase in 2006,” he said.
The combined ratio excluding catastrophe and asbestos and environmental charges rose in the quarter to 89.9 from 87.7 in the comparable year-ago period. Including those factors the figure was 102.4 last quarter.
Catastrophe losses for the quarter were $304 million, compared to $31 million in the fourth quarter of 2004.
Net income for all of 2005 came in at $1 billion, representing a decline of 11 percent from $1.2 billion for 2004.
The combined ratio for the year, excluding asbestos and catastrophe losses, was 88 percent, up from 87.5 percent in 2004.
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