The insurance "underwriting environment is improving," with rates on the rise, according to Evan Greenberg, chairman and chief executive officer of ACE Ltd., which reported a sharp decline in net income but a sparkling 87 combined ratio for last year's final quarter.

Mr. Greenberg noted that fourth-quarter 2008 net income of only $20 million, or 6 cents per share--compared with $572 million, or $1.69 per share a year earlier--was marred by $440 million of other-than-temporary impairment charges (accounting charges related to investments) and poor performance in the life reinsurance business of his Zurich-based carrier.

"The fourth quarter [of 2008] was a difficult finish to a difficult year for all financial services companies--ACE included," Mr. Greenberg said. But he pointed out that given the turbulence in financial markets and the economic environment generally, "on an operating basis, ACE had a good quarter," with property-casualty and accident and health operations both performing well.