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The Collaborative Clearinghouse for Lawsuits and Other Claims Against ACE Group Insurance Companies

2001-10-10 ACE Limited (NYSE: ACE) 8-K

ATTENTION: It is possible that this information may no longer be current and therefore may be inaccurate. The index contains both open and closed cases and is not a complete list of cases in which an ACE Insurance Group company is involved. This information is provided to give interested persons an idea of the issues disputed in the indexed cases. For a full understanding of a case, one should read the rest of the court file, including the response. For the most up-to-date and complete information on a case, visit www.pacer.gov or contact the clerk of the relevant court.

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http://www.sec.gov/Archives/edgar/data/896159/000090256101500303/0000902561-01-5003...
<SEC-DOCUMENT>0000902561-01-500303.txt : 20011030 <SEC-HEADER>0000902561-01-500303.hdr.sgml : 20011030 ACCESSION NUMBER: 0000902561-01-500303 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20011025 ITEM INFORMATION: Other events FILED AS OF DATE: 20011025 FILER: COMPANY DATA: COMPANY CONFORMED NAME: CENTRAL INDEX KEY: STANDARD INDUSTRIAL CLASSIFICATION: IRS NUMBER: STATE OF INCORPORATION: FISCAL YEAR END: FILING VALUES: FORM TYPE: SEC ACT: SEC FILE NUMBER: FILM NUMBER: BUSINESS ADDRESS: STREET 1: STREET 2: CITY: STATE: ZIP: BUSINESS PHONE: MAIL ADDRESS: STREET 1: CITY: STATE: ZIP: </SEC-HEADER> <DOCUMENT> <TYPE>8-K <SEQUENCE>1 <FILENAME>form8k.txt <TEXT> 8-K 1934 Act 001-11778 1766408 ACE BLDG 30 WOODBOURNE AVE HAMILTON HM 08 BERMU D0 00000 8092955200 P O BOX HM 1015 HAMITON BERMUDA D0 00000 ACE LTD 0000896159 FIRE, MARINE & CASUALTY INSURANCE [6331] 000000000 D0 1231
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): October 25, 2001 ACE LIMITED (Exact name of registrant as specified in its charter) Cayman Islands (State or other jurisdiction 1-11778 98-0091805 (Commission (I.R.S. Employer of Incorporation) File Number) Identification No.)
ACE Global Headquarters 17 Woodbourne Avenue Hamilton, Bermuda (Address of principal executive offices)
HM 08 Zip Code)
Registrant's telephone number, including area code: (441) 295-5200 Not Applicable (Former name or former address, if changed since last report)
<PAGE>
Item 5.
Other Information
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On October 25, 2001, ACE Limited issued a press release announcing earnings highlights for the third-quarter of 2001. Attached as Exhibit 99.1 is a copy of the press release, dated October 25, 2001.
<PAGE> 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. Dated: October 25, 2001 ACE LIMITED By: /s/ Christopher Z. Marshall --------------------------Christopher Z. Marshall Chief Financial Officer
<PAGE>
EXHIBIT INDEX Exhibit Number -----99.1 Description ----------Press Release, dated October 25, 2001
</TEXT> </DOCUMENT> <DOCUMENT> <TYPE>EX-99 <SEQUENCE>3 <FILENAME>exh99.txt <TEXT>
FOR IMMEDIATE RELEASE Investor Contact: Media Contact: Helen (441) Wendy (441) M. Wilson 299-9283 Davis Johnson 299-9347
ACE Limited Reports Third Quarter Earnings Highlights HAMILTON, Bermuda--(BUSINESS WIRE)--Oct. 25, 2001--ACE Limited (NYSE: ACE news) today reported a net loss excluding net realized gains (losses) of $390.1 million for the quarter ended September 30, 2001, or a loss, after deducting preferred dividends, of $1.66 per share, compared with income excluding net realized gains (losses) of $150.6 million for the quarter ended September 30, 2000, or earnings per share of $0.62. The net loss for the quarter ended September 30, 2001 was $442.6 million compared with net income of $140.8 million in 2000 and the loss per share, after deducting preferred dividends, was $1.88 for the current quarter compared with earnings per share of $0.58 for the same quarter last year. Earnings per share calculations above are based on the weighted average number of shares calculated in accordance with FAS 128 on a diluted basis.
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The Company's third quarter results were reduced by $558.8 million after tax ($636.9 million on a pre-tax basis) as a result of the September 11, 2001 tragedy. Excluding the impact of this event, the Company's income excluding net realized gains (losses) for the quarter ended September 30, 2001 would have been $168.7 million and earnings per share excluding net realized gains (losses), after deducting preferred dividends, would have been $0.68 per share on a diluted basis. Gross premiums written during the quarter increased by 25.1 percent to $2.5 billion, compared with $2 billion for the comparable quarter last year. Net premiums written during the quarter increased by 9.0 percent to $1.3 billion compared with $1.2 billion for the same quarter last year. Net premiums earned during the quarter increased to $1.4 billion from $1.2 billion for the same quarter last year. For the first nine months of fiscal 2001, gross premiums written increased by 25.6 percent to $7.5 billion compared with the same period last year and net premiums written increased by 16.6 percent to $4.5 billion compared with the first nine months of fiscal 2000. Net premiums earned for the nine months ended September 30, 2001 were $4.2 billion compared with $3.4 billion for the same period last year. Net investment income which excludes net realized gains (losses) on investments, was $192.9 million for the fiscal 2001 third quarter, compared with $197.6 million for the same period last year. For the first nine months of fiscal 2001, net investment income, was $593.6 million compared with $561.5 million for the same period last year. During the 2001 third quarter, ACE had net realized losses, net of tax, of $52.5 million, compared with net realized losses of $9.8 million for the same quarter last year. For the nine months ended September 30, 2001, net realized losses, net of tax, were $54.7 million, compared with net realized gains of $11.5 million for the nine months ended September 30, 2000. As previously announced, ACE has commenced a public offering of approximately $1 billion of its ordinary shares, plus up to an additional $150 million of ordinary shares to cover over-allotments. Subject to market and other conditions, ACE expects the transaction to be completed in the near future. ACE intends to deploy the new capital by, among other things, expanding its net underwriting capacity, either through internal growth and/or through acquisitions of lines of business or companies. <PAGE> The ACE Group of Companies provides insurance and reinsurance for a diverse group of clients. The ACE Group conducts its business on a global basis with operating subsidiaries in nearly 50 countries. Additional information can be found at: http://www.acelimited.com. Application of the Safe Harbor of the Private Securities Litigation Reform Act of 1995: Any forward-looking statements made in this press release reflect the Company's 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 those set forth in these statements. Among other things, the impact of the recent tragedy on the Company's financial results will depend on the number of insureds and reinsureds affected by the disaster, and the amount and timing of losses actually incurred and reported by insureds and reinsureds. Also, competition in the industry, levels of new and renewal business achieved, market acceptance, the frequency of unpredictable catastrophic events and economic, market, regulatory, insurance and reinsurance business conditions and other factors identified in the Company's filings with the Securities and Exchange Commission could affect the forward-looking statements contained in this press release. 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. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
<PAGE> <TABLE> <CAPTION> ACE Limited Summary Consolidated Financial Data (in thousands of U.S. dollars, except share and per share data) ----------------------------------------------------------------------------------Three Months Ended Nine Months Ended September 30 September 30 -------------------------------------------
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<S> Operations Data: Gross premiums written Net premiums written Net premiums earned Losses and loss expenses Policy acquisition costs Administrative expenses Underwriting income (loss) Net investment income Amortization of goodwill Interest expense Income tax expense (benefit) Income (loss) excluding net realized gains (losses), non-recurring expenses and cumulative effect of adopting a new accounting standard Non-recurring expenses (a) Income (loss) excluding net realized gains (losses) and cumulative effect Net realized gains (losses) (a) Income (loss) excluding cumulative effect Cumulative effect of adopting a new accounting standard (a) Net income (loss)
2001 --------<C> $2,502,371 1,305,067 1,399,429 1,571,333 204,666 207,389 ---------(583,959) 192,909 19,912 49,130 (69,978) ----------
2000 --------<C> $1,999,816 1,196,804 1,174,782 772,887 168,258 177,912 ---------55,725 197,584 19,919 55,408 27,429 ----------
2001 ---------<C>
2000 ---------<C>
$7,466,670 $5,946,843 4,510,830 3,867,711 4,153,732 3,447,424 3,506,272 2,256,481 558,996 482,628 601,415 554,784 ---------- ---------(512,951) 153,531 593,606 561,548 59,664 58,889 153,094 166,544 (21,254) 71,981 ---------- ----------
(390,114) ----------
150,553 ----------
(110,849) 417,665 (4,461) ---------- ----------
(390,114) (52,476) ---------(442,590) ---------$ (442,590) ==========
150,553 (9,800) ---------140,753 ---------$ 140,753 ==========
(115,310) 417,665 (54,699) 11,529 ---------- ---------(170,009) 429,194
(22,670) ---------- ---------$ (192,679) $ 429,194 ========== ==========
<PAGE> (Basic earnings per share):(b) Earnings (loss) per share excluding net realized gains (losses), non-recurring expenses and cumulative effect of adopting a new accounting standard Earnings (loss) per share excluding net realized gains (losses) and cumulative effect of adopting a new accounting standard Earnings (loss) per share excluding cumulative effect of adopting a new accounting standard Earnings (loss) per share Weighted average shares outstanding (Diluted earnings per share):(b) Earnings (loss) per share excluding net realized gains (losses), non-recurring expenses and cumulative effect of adopting a new accounting standard Earnings (loss) per share excluding net realized gains (losses) and cumulative effect of adopting a new accounting standard Earnings (loss) per share excluding cumulative effect of adopting a new accounting standard Earnings (loss) per share Weighted average shares outstanding
$(1.72)
$0.65
$(0.55)
$1.86
$(1.72)
$0.65
$(0.57)
$1.86
$(1.95) $(1.95) 230,610,425
$0.60 $0.60 222,042,432
$(0.81) $(0.90) 234,485,610
$1.92 $1.92 217,615,849
$(1.66)
$0.62
$(0.53)
$1.83
$(1.66)
$0.62
$(0.55)
$1.83
$(1.88) $(1.88) 238,980,848
$0.58 $0.58 231,385,699
$(0.78) $(0.87) 243,993,711
$1.88 $1.88 222,047,554
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(a) Shown net of income tax (b) EPS calculations provided on page 6 of this release <PAGE> <CAPTION> ACE Limited Summary Consolidated Financial Data (in thousands of U.S. dollars, except per share data) -------------------------------------------------------------------------------------September 30, December 31, 2001 2000 -----------------------<S> Balance Sheet Data: Investments and Cash: Fixed maturities available for sale, at fair value (amortized cost $11,051,756 and $10,640,937) Equity securities, at fair value (cost $525,325 and $495,049) Short-term investments, at fair value (amortized cost $1,439,235 and $1,369,784) Other investments, at fair value (cost $568,745 and $518,130) Cash Total investments and cash Reinsurance recoverable Total assets Unpaid losses and loss expenses Total liabilities Mezzanine equity Shareholders' equity Ordinary shares ($0.041666667 par value, 300,000,000 shares authorized; 226,390,282 and 232,346,579 shares issued and outstanding) Additional paid-in capital Unearned stock grant compensation Retained earnings Accumulated other comprehensive income Total shareholders' equity Total liabilities, mezzanine equity and shareholders' equity Fully diluted book value per share <C> <C>
$11,375,713 427,929 1,439,235 594,923 754,588 ----------$14,592,388 10,701,733 $34,909,275 $19,883,757 $29,580,445 $ 311,050
$10,721,309 532,046 1,369,784 531,116 608,069 ----------$13,762,324 8,994,940 $31,689,526 $17,388,394 $25,958,265 $ 311,050
$
9,433 2,575,080 (40,129) 2,320,704 152,692 ----------$ 5,017,780 ----------$34,909,275 =========== $21.66
$
9,681 2,637,085 (29,642) 2,733,633 69,454 ----------$ 5,420,211 ----------$31,689,526 =========== $23.25
<PAGE> <CAPTION> ACE Limited Consolidated Supplementary Information Computation of Basic and Diluted Earnings per Share (in thousands of U.S. dollars, except share and per share data) -------------------------------------------------------------------------------------Three Months Ended September 30 ---------------------2001 2000 ------<S> Numerator: Income (loss) excluding net realized gains (losses), non-recurring expenses and cumulative effect of adopting a new accounting standard Feline PRIDES dividend Income (loss) available to the holders of ordinary shares, excluding net realized gains (losses), non-recurring expenses and cumulative effect of <C> <C> <C> Nine Months Ended September 30 --------------------2001 2000 ------<C>
$(390,114) (6,416) ----------
$ 150,553 (6,537) ----------
$(110,849) (19,179) ----------
$ 417,665 (11,862) ----------
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adopting a new accounting standard Non-recurring expenses (a) Net income (loss) available to the holders of ordinary shares, excluding net realized gains (losses) and cumulative effect Net realized gains (losses)(a) Net income (loss) available to the holders of ordinary shares, excluding cumulative effect Cumulative effect of adopting a new accounting standard (a) Net income (loss) available to the holders of ordinary shares Denominator: Denominator for basic earnings per share: Weighted average shares outstanding Dilutive effect of Feline PRIDES Effect of other dilutive securities
(396,530) ----------
144,016 ----------
(130,028) (4,461) ----------
405,803 ----------
(396,530) (52,476) ---------(449,006) ---------$(449,006) ----------
144,016 (9,800) ---------134,216 ---------$ 134,216 ----------
(134,489) (54,699) ---------(189,188) (22,670) ---------$(211,858) ----------
405,803 11,529 ---------417,332 ---------$ 417,332 ----------
230,610,425 222,042,432 234,485,610 2,462,861 2,663,691 3,067,185 5,907,562 6,679,576 6,440,916 ---------- ---------- ---------Denominator for diluted earnings per share: Adjusted weighted average shares outstanding and assumed conversions 238,980,848 231,385,699 243,993,711 ----------- ----------- -----------
217,615,849 4,431,705 ---------222,047,554 -----------
<PAGE> Basic earnings per share: Earnings (loss) per share excluding net realized gains (losses), non-recurring expenses and cumulative effect of adopting a new accounting standard Earnings (loss) per share excluding net realized gains (losses) and cumulative effect of adopting a new accounting standard Earnings (loss) per share excluding cumulative effect of adopting a new accounting standard Earnings per share Diluted earnings per share: Earnings (loss) per share excluding net realized gains (losses), non-recurring expenses and cumulative effect of adopting a new accounting standard Earnings (loss) per share excluding net realized gains (losses) and cumulative effect of adopting a new accounting standard Earnings (loss) per share excluding cumulative effect of adopting a new accounting standard Earnings per share (a) Shown net of income tax
$(1.72)
$0.65
$(0.55)
$1.86
$(1.72) $(1.95) $(1.95)
$0.65 $0.60 $0.60
$(0.57) $(0.81) $(0.90)
$1.86 $1.92 $1.92
$(1.66)
$0.62
$(0.53)
$1.83
$(1.66) $(1.88) $(1.88)
$0.62 $0.58 $0.58
$(0.55) $(0.78) $(0.87)
$1.83 $1.88 $1.88
</TABLE>
</TEXT> </DOCUMENT> </SEC-DOCUMENT>
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