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

2001-10-30 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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<SEC-DOCUMENT>0000902561-01-500320.txt : 20011101 <SEC-HEADER>0000902561-01-500320.hdr.sgml : 20011101 ACCESSION NUMBER: 0000902561-01-500320 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20011025 ITEM INFORMATION: Other events FILED AS OF DATE: 20011030 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 1770592 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 30, 2001 ACE LIMITED (Exact name of registrant as specified in its charter) Cayman Islands (State or other jurisdiction 1-11778 (Commission (I.R.S. File Number) 98-0091805 Employer of Incorporation) 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
On October 30, 2001, ACE Limited issued a press release announcing earnings for the third-quarter of 2001. Attached as Exhibit 99.1 is a copy of the press release, dated October
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30, 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 30, 2001 ACE LIMITED By: Christopher Z. Marshall ------------------------Christopher Z. Marshall Chief Financial Officer
<PAGE> EXHIBIT INDEX Exhibit Number -----99.1 Description ----------Press Release, dated October 30, 2001
</TEXT> </DOCUMENT> <DOCUMENT> <TYPE>EX-99.1 <SEQUENCE>3 <FILENAME>exh991.txt <TEXT> FOR IMMEDIATE RELEASE Investor Contact: Media Contact: Helen M. Wilson 441/299-9283 Wendy Davis Johnson 441/299-9347
ACE Limited Reports Third Quarter Earnings HAMILTON, Bermuda--(BUSINESS WIRE)--Oct. 30, 2001--ACE Limited (NYSE:ACE) 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 $1.72 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 $1.95 for the current quarter compared with earnings per share of $0.58 for the same quarter last year. Earnings (loss) per share calculations above are based on the weighted average number of shares calculated in accordance with FAS 128 on a diluted basis. Under FAS 128, the incremental shares from assumed conversions are not included in computing diluted loss per share amounts. The fully diluted book value per share of the Company at September 30, 2001 was $22.10. Certain amounts noted above have been restated from the third quarter earnings highlights issued on October 25, 2001. 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. Brian Duperreault, chairman and chief executive officer of ACE Limited, commented: "The tragedy of September 11 has materially altered the business of insurance. It has created uncertainty and significantly increased insurance demand. With our global platform and increased capital, ACE is well positioned to meet this demand."
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Gross premiums written during the quarter increased by 25 percent to $2.5 billion, compared with $2 billion for the comparable quarter last year. Net premiums written during the quarter increased by 9 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 26 percent to $7.5 billion compared with the same period last year and net premiums written increased by 17 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 quarter 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. 1 <PAGE> On October 25, 2001, ACE announced that it agreed to sell in a public offering 28.6 million ordinary shares at a price per share of $35.00, resulting in net proceeds of $980 million. ACE also granted the underwriters of the offering an option to purchase an additional 4.29 million ordinary shares at the same price to cover over-allotments. This option was exercised on Monday, October 29, 2001 and will result in additional proceeds of $147 million. 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, the amount and timing of losses actually incurred and reported by insureds and reinsureds and governmental responses to the tragedy. Availability of capacity to clients will depend on opportunities presented and the application of underwriting guidelines. Also, competition in the industry, levels of new and renewal business achieved, market acceptance, the frequency of unpredictable catastrophic events, actual loss experience 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. publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. 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 ---------------------------------2001 2000 2001 2000 ------------Operations Data: Gross premiums written $2,502,371 $1,999,816 $7,466,670 $5,946,843 Net premiums written 1,305,067 1,196,804 4,510,830 3,867,711 Net premiums earned 1,399,429 1,174,782 4,153,732 3,447,424 Losses and loss expenses 1,571,333 772,887 3,506,272 2,256,481
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Policy acquisition costs Administrative expenses Underwriting income (loss) Net investment income Amortization of goodwill Interest expense Income tax expense (benefit)
204,666 207,389 --------(583,959) 192,909 19,912 49,130 (69,978) --------2
168,258 177,912 --------55,725 197,584 19,919 55,408 27,429 ---------
558,996 601,415 ---------(512,951) 593,606 59,664 153,094 (21,254) ----------
482,628 554,784 --------153,531 561,548 58,889 166,544 71,981 ---------
<PAGE> Income (loss) excluding net realized gains (losses), non-recurring expenses and cumulative effect of adopting a new accounting standard Non-recurring expenses (1) Income (loss) excluding net realized gains (losses) and cumulative effect Net realized gains (losses) (1) Income (loss) excluding cumulative effect Cumulative effect of adopting a new accounting standard (1) Net income (loss)
(390,114) ---------
150,553 ---------
(110,849) (4,461) ----------
417,665 ---------
(390,114) (52,476) ---------(442,590)
150,553 (9,800) -------140,753
(115,310) (54,699) --------(170,009)
417,665 11,529 --------429,194
---------$(442,590) ==========
---------$140,753 ==========
(22,670) ---------$(192,679) ==========
-------$429,194 =========
Diluted earnings (loss) per share: (2) Earnings (loss) per share excluding net realized gains (losses), non-recurring expenses and cumulative effect of adopting a new accounting standard $(1.72) Earnings (loss) per share excluding net realized gains (losses) and cumulative effect of adopting a new accounting standard $(1.72) Earnings (loss) per share excluding cumulative effect of adopting a new accounting standard $(1.95) Earnings (loss) per share $(1.95) Weighted average shares outstanding 230,610,425
$0.62
$(0.56)
$1.83
$0.62
$(0.58)
$1.83
$0.58 $0.58
$(0.82) $(0.92)
$1.88 $1.88
231,385,699
231,390,682 222,047,554
Earnings (loss) per share based on weighted average shares outstanding and assumed conversions(2) Earnings (loss) per share excluding net realized gains (losses), non-recurring expenses and cumulative effect of adopting a new accounting standard $(1.66) $0.62 $(0.54) $1.83 Earnings (loss) per share excluding net realized gains (losses) and cumulative effect of adopting a new accounting standard $(1.66) $0.62 $(0.56) $1.83 Earnings (loss) per share excluding cumulative effect of adopting a new accounting standard $(1.88) $0.58 $(0.79) $1.88
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Earnings (loss) per share
$(1.88)
$0.58
$(0.88) 240,898,738
$1.88 222,047,554
Weighted average shares outstanding 238,980,848
231,385,699
(1) Shown net of income tax (2)Detailed EPS information provided on page 15 of this release. ---------------------------------------------------------------------3 <PAGE> ACE Limited Consolidated Supplementary Segment Information (in millions of U.S. dollars) ---------------------------------------------------------------------Three Months Ended September 30 -----------------2001 2000 ------Gross Premiums Written ---------------------ACE ACE ACE ACE ACE ACE Bermuda Global Markets Global Reinsurance USA International Financial Services $ 321 220 102 1,308 514 37 ----$2,502 ----$ 200 239 31 975 497 58 ----$2,000 ----$ 895 871 367 3,293 1,726 315 ----$7,467 ----$ 511 753 178 2,662 1,554 289 ----$5,947 ----Nine Months Ended September 30 ----------------2001 2000 -------
Total
Net Premiums Written -------------------ACE ACE ACE ACE ACE ACE Bermuda Global Markets Global Reinsurance USA International Financial Services $ 180 86 76 586 342 35 ----$1,305 ----$ 182 177 13 450 325 50 ----$1,197 ----$ 720 517 327 1,506 1,134 307 ----$4,511 ----$ 446 551 146 1,370 1,080 274 ----$3,867 -----
Total
Net Premiums Earned ------------------ACE ACE ACE ACE ACE ACE Bermuda Global Markets Global Reinsurance USA International Financial Services $ 281 112 103 515 344 44 ----$1,399 ----$ 170 174 38 411 339 43 ----$1,175 ----$ 782 459 248 1,335 1,063 267 ----$4,154 ----$ 356 455 96 1,256 1,037 247 ----$3,447 -----
Total
----------------------------------------------------------------------
4 <PAGE> ACE Limited Summary Consolidated Financial Data (in thousands of U.S. dollars, except per share data) ---------------------------------------------------------------------September 30, December 31, 2001 2000 -----------------------Balance Sheet Data: Assets Fixed maturities available for sale, at fair value (amortized cost $11,051,756 and $10,640,937) $11,375,713 $10,721,309
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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 Insurance and reinsurance balances receivable Accounts and notes receivable Reinsurance recoverable Deferred policy acquisition costs Goodwill Deferred tax assets Other assets Total assets Liabilities Unpaid losses and loss expenses Unearned premiums Insurance and reinsurance balances payable Contract holder deposit funds Accounts payable, accrued expenses and other liabilities Short-term debt Long-term debt Trust preferred securities Total liabilities Commitments and contingencies 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
427,929 1,439,235 594,923 754,588 ------------$14,592,388 2,456,780 242,532 10,701,733 680,642 2,790,986 1,178,418 2,265,796 ------------$34,909,275 ============= $19,883,757 3,777,915 1,563,766 106,460 1,497,648 451,470 1,424,429 875,000 ------------$29,580,445 =============
532,046 1,369,784 531,116 608,069 -----------$13,762,324 2,095,573 388,996 8,994,940 572,757 2,846,709 1,144,261 1,883,966 -----------$31,689,526 ============ $17,388,394 3,035,288 1,319,091 139,056 1,412,699 364,509 1,424,228 875,000 -----------$25,958,265 ============
$ 311,050 -------------
$ 311,050 ------------
9,433 2,575,080 (40,129) 2,320,704 152,692 ------------$ 5,017,780 $34,909,275 =============
$
$
9,681 2,637,085 (29,642) 2,733,633 69,454 -----------$ 5,420,211 $31,689,526 ============
----------------------------------------------------------------------
5 <PAGE> ACE Limited Supplemental Information by Segment Three months ended September 30, 2001 (in thousands of U.S. dollars) ---------------------------------------------------------------------ACE Bermuda --------Operations Data: Gross premiums written $ 321,162 Net premiums written 180,289 Net premiums earned 281,334 Losses and loss expenses 478,996 Policy ACE (1) Global Markets -------$219,474 86,098 112,412 256,787 ACE (2) Global Reinsurance ----------$70,185 43,645 70,293 130,612 ACE USA ---------$1,308,049 585,967 515,233 426,518 ACE International -------$514,071 341,953 344,091 230,926
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acquisition costs Administrative expenses Underwriting income
5,026 11,798 --------(214,486)
55,470 18,158 -------(218,003)
12,795 10,467 ----------(83,581)
55,146 66,625 ---------(33,056) 84,541 135 8,508 14,523 ----------
66,296 68,445 -------(21,576) 20,545 3,102 --------
Net investment income 35,882 8,288 15,728 Amortization of goodwill (225) 958 3,503 Interest expense 859 653 Income tax expense (benefit) 697 (74,819) --------- -------- ----------Income (loss) excluding net realized gains (losses) (179,935) (136,507) (71,356) Net realized gains (losses)(4) (2,602) 2,808 (5,003) --------- -------- ----------Net income (loss) $(182,537) $(133,699) $( 76,359) ========= ======== =========== Losses and loss expense ratio Policy acquisition cost ratio Administrative expense ratio Combined ratio 170.2% 1.8% 4.2% 176.2% 228.4% 49.3% 16.2% 293.9% 185.8% 18.2% 14.9% 218.9%
28,319
(4,133)
(3,944) 2,214 ---------- -------$ 24,375 ========== 82.8% 10.7% 12.9% 106.4% $( 1,919) ======== 67.1% 19.3% 19.9% 106.3%
(1) Losses and loss expenses in ACE Global Market includes $17 million of incurred losses in respect of the RGB syndicate that is in run-off. (2) ACE Global Reinsurance segment includes both property & casualty reinsurance business and life reinsurance business. These two distinct areas have been shown separately in this analysis. (3) Includes ACE Limited, ACE INA Holdings and intercompany eliminations (4) Shown net of income tax.
6 <PAGE> ACE Limited Supplemental Information by Segment Three months ended September 30, 2001 (in thousands of U.S. dollars) ---------------------------------------------------------------------ACE ACE ConsolGlobal ACE Financial idated Life ReConsolServices Other(3) P&C insurance idated --------- -------- ---------- ---------- ---------Operations Data: Gross premiums written $ 37,254 $ - $2,470,195 $32,176 $2,502,371 Net premiums written 34,939 1,272,891 32,176 1,305,067 Net premiums earned 43,890 1,367,253 32,176 1,399,429 Losses and loss expenses 17,788 1,541,627 29,706 1,571,333 Policy acquisition costs 9,374 204,107 559 204,666 Administrative expenses 8,265 22,181 205,939 1,450 207,389 --------- -------- ---------- ---------- ---------Underwriting income 8,463 (22,181) (584,420) 461 (583,959) Net investment income Amortization of goodwill Interest expense Income tax 25,845 1,051 3,840 1,961 14,490 35,270 192,790 19,912 49,130 119 192,909 19,912 49,130
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expense (benefit) Income (loss) excluding net realized gains (losses) Net realized gains (losses)(4) Net income (loss) Losses and loss expense ratio Policy acquisition cost ratio Administrative expense ratio Combined ratio
5,516 ---------
(18,997) (69,978) -------- ---------- ----------
(69,978) ----------
23,901
(50,983)
(390,694)
580
(390,114) (52,476) ---------$(442,590) ==========
(20,884) (25,065) (52,476) --------------- ---------- ---------$ 3,017 ========= 40.5% 21.4% 18.8% 80.7% $(76,048) $(443,170)$ 580 ======== ========== ========== 112.7% 14.9% 15.1% 142.7%
(1) Losses and loss expenses in ACE Global Market includes $17 million of incurred losses in respect of the RGB syndicate that is in run-off. (2) ACE Global Reinsurance segment includes both property & casualty reinsurance business and life reinsurance business. These two distinct areas have been shown separately in this analysis. (3) Includes ACE Limited, ACE INA Holdings and intercompany eliminations (4) Shown net of income tax. 7 <PAGE> ACE Limited Supplemental Information by Segment Impact of September 11, 2001 tragedy (a) Three months ended September 30, 2001 (in thousands of U.S. dollars) ---------------------------------------------------------------------ACE ACE ACE Global Global Bermuda Markets Reinsurance ------- ----------------ACE USA --ACE InterACE national Consolidated -------- ------------
Operations Data: Gross premiums written $142,426 $(20,691) $ $ $ Net premiums written 138,676 (66,292) 1,768 (18,124) (4,500) Net premiums earned 100,092 (66,292) 2,892 (18,124) (4,500) Losses and loss expenses 341,785 140,212 122,017 28,178 18,300 Policy acquisition costs 502 Administrative expenses ----------------------------Underwriting income (241,693) (206,504) (119,627) (46,302) (22,800) Net investment income Amortization of goodwill Interest expense Income tax expense (benefit) ------(61,951) ------------(16,206) -----------
$121,735 51,528 14,068 650,492 502 ------(636,926) (78,157) -------
Net income (loss) $(241,693) $(144,553) $(119,627) $(30,096)$(22,800) $(558,769) ======= ======= ======= ====== ====== ======= (a) The analysis of the impact of the September 11, 2001 tragedy includes the effects of the intercompany reinsurance transactions.
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8 <PAGE> ACE Limited Supplemental Information by Segment Excluding Impact of September 11, 2001 tragedy Three months ended September 30, 2001 (in thousands of U.S. dollars) ---------------------------------------------------------------------ACE Bermuda --------Operations Data by Segment: Gross premiums written Net premiums written Net premiums earned Losses and loss expenses Policy acquisition costs Administrative expenses Underwriting income (loss) ACE (1) Global Markets -------ACE (2) Global Reinsurance ----------ACE USA ---------ACE International --------
$178,736 41,613 181,242 137,211 5,026 11,798 --------27,207
$240,165 152,390 178,704 116,575 55,470 18,158 -------(11,499)
$70,185 41,877 67,401 8,595 12,293 10,467 ----------36,046
$1,308,049 604,091 533,357 398,340 55,146 66,625 ---------13,246 84,541 135 8,508 30,729 ----------
$514,071 346,453 348,591 212,626 66,296 68,445 -------1,224 20,545 3,102 --------
Net investment income 35,882 8,288 15,728 Amortization of goodwill (225) 958 3,503 Interest expense 859 653 Income tax expense (benefit) 697 (12,868) --------- -------- ----------Income (loss) excluding net realized gains (losses) Net realized gains (losses)(4) Net income (loss) Losses and loss expense ratio Policy acquisition cost ratio Administrative expense ratio Combined ratio
61,758 (2,602) --------$ 59,156 ========= 75.7% 2.8% 6.5% 85.0%
8,046 2,808 -------$ 10,854 ======== 65.2% 31.0% 10.2% 106.4%
48,271
58,415
18,667
(5,003) (3,944) 2,214 ----------- ---------- -------$ 43,268 =========== 12.8% 18.2% 15.5% 46.5% $ 54,471 ========== 74.7% 10.3% 12.5% 97.5% $ 20,881 ======== 61.0% 19.0% 19.6% 99.6%
(1) Losses and loss expenses in ACE Global Market includes $17 million of incurred losses in respect of the RGB syndicate that is in run-off. (2) ACE Global Reinsurance segment includes both property & casualty reinsurance business and life reinsurance business. These two distinct areas have been shown separately in this analysis. (3) Includes ACE Limited, ACE INA Holdings and intercompany eliminations (4) Shown net of income tax.
9 <PAGE> ACE Limited Supplemental Information by Segment Excluding Impact of September 11, 2001 tragedy Three months ended September 30, 2001 (in thousands of U.S. dollars) ----------------------------------------------------------------------
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ACE Financial Services --------Operations Data by Segment: Gross premiums written $ 37,254 Net premiums written 34,939 Net premiums earned 43,890 Losses and loss expenses 17,788 Policy acquisition costs 9,374 Administrative expenses 8,265 --------Underwriting income (loss) 8,463 Net investment income 25,845 Amortization of goodwill 1,051 Interest expense 3,840 Income tax expense (benefit) 5,516 --------Income (loss) excluding net realized gains (losses) Net realized gains (losses)(4) Net income (loss) Losses and loss expense ratio Policy acquisition cost ratio Administrative expense ratio Combined ratio
Other(3) --------
ACE ConsolGlobal idated Life ReP&C insurance ---------- ----------
ACE Consolidated ----------
$
-
$2,348,460 $ 1,221,363 1,353,185 891,135 203,605
32,176 32,176 32,176 29,706 559
$2,380,636 1,253,539 1,385,361 920,841 204,164 207,389 ---------52,967 192,909
22,181 -------(22,181) 1,961 14,490 35,270
205,939 1,450 ---------- ---------52,506 192,790 19,912 49,130 461 119 -
19,912 49,130 8,179 ----------
(18,997) 8,179 -------- ---------- ----------
23,901
(50,983)
168,075
580
168,655 (52,476) ---------$ 116,179 ==========
(20,884) (25,065) (52,476) --------- -------- ---------- ---------$ 3,017 ========= 40.5% 21.4% 18.8% 80.7% $(76,048) $ 115,599 $ 580 ======== ========== ========== 65.9% 15.0% 15.2% 96.1%
(1) Losses and loss expenses in ACE Global Market includes $17 million of incurred losses in respect of the RGB syndicate that is in run-off. (2) ACE Global Reinsurance segment includes both property & casualty reinsurance business and life reinsurance business. These two distinct areas have been shown separately in this analysis. (3) Includes ACE Limited, ACE INA Holdings and intercompany eliminations (4) Shown net of income tax. 10 <PAGE> ACE Limited Supplemental Information by Segment Three months ended September 30, 2000 (in thousands of U.S. dollars) ---------------------------------------------------------------------ACE ACE ACE Global Global ACE Bermuda Markets Reinsurance USA ------------------------Operations Data by Segment: Gross premiums written Net premiums written Net premiums earned Losses and loss
$199,741 181,573 170,292
$239,484 176,672 174,266
$30,750 12,811 37,707
$974,862 450,518 410,472
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expenses 132,701 Policy acquisition costs 7,565 Administrative expenses 7,494 -----Underwriting income (loss) 22,532 Net investment income 38,906 Amortization of goodwill (225) Interest expense 908 Income tax expense (benefit) 655 -----Income (loss) excluding net realized gains (losses) 60,100 Net realized gains (losses)(2) 7,135 -----Net income (loss) $67,235 ====== Losses and loss expense ratio Policy acquisition cost ratio Administrative expense ratio Combined ratio 77.9% 4.5% 4.4% 86.8%
102,503 44,844 18,499 -----8,420 7,932 965 1,897 5,623 ------
5,813 6,180 2,957 -----22,757 15,056 3,503 ------
307,692 40,430 58,631 -----3,719 89,599 135 11,404 26,238 ------
7,867 (1,245) -----$6,622 ====== 58.8% 25.7% 10.6% 95.1% 11
34,310 (12,433) -----$21,877 ====== 15.4% 16.4% 7.9% 39.7%
55,541 (5,989) -----$49,552 ====== 75.0% 9.8% 14.3% 99.1%
<PAGE> ACE International -------Operations Data by Segment: Gross premiums written $496,953 Net premiums written 324,779 Net premiums earned 339,101 Losses and loss expenses 205,976 Policy acquisition costs 59,339 Administrative expenses 68,552 -------Underwriting income (loss) 5,234 Net investment income 24,612 Amortization of goodwill Interest expense Income tax expense (benefit) 4,400 -------Income (loss) excluding net realized gains (losses) 25,446 Net realized gains (losses)(2) 492 -------Net income (loss) $25,938 ======== Losses and loss expense ratio Policy acquisition cost ratio Administrative expense ratio Combined ratio 60.7% 17.5% 20.3% 98.5% ACE Financial Services -------$58,026 50,451 42,944 18,202 9,900 7,665 -------7,177 24,168 1,051 3,378 6,403 -------20,513 2,030 -------$22,543 ======== 42.4% 23.1% 17.8% 83.3%
ACE Other(1) Consolidated ---------------14,114 -------(14,114) (2,689) 14,490 37,821 (15,890) -------(53,224) 210 -------$(53,014) ======== $ $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 -------150,553 (9,800) -------$140,753 ======== 65.8% 14.3% 15.1% 95.2%
---------------------------------------------------------------------(1) Includes ACE Limited, ACE INA Holdings and intercompany eliminations. (2) Shown net of income tax.
12 <PAGE> ACE Limited Supplemental Information by Segment
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Nine months ended September 30, 2001 (in thousands of U.S. dollars) ---------------------------------------------------------------------ACE (1) ACE (2) ACE ACE Global Global ReACE InterBermuda Markets insurance USA national --------- -------- ---------- ---------- ---------Operations Data: Gross premiums written $894,631 $870,847 $304,195 $3,293,341 $1,725,948 Net premiums written 720,109 516,781 264,341 1,505,970 1,133,864 Net premiums earned 782,206 458,615 184,894 1,334,846 1,063,467 Losses and loss expenses 933,967 455,113 186,884 1,011,216 674,048 Policy acquisition costs 14,872 158,157 32,822 134,464 186,455 Administrative expenses 28,568 52,716 18,943 209,702 197,126 --------- -------- ---------- ---------- ---------Underwriting income (195,201) (207,371) (53,755) (20,536) 5,838 Net investment income 113,728 28,575 47,478 Amortization of goodwill (675) 2,803 10,508 Interest expense 888 2,078 Income tax expense (benefit) 2,046 (65,384) --------- -------- ---------Income (loss) excluding net realized gains (losses), non-recurring expenses and cumulative effect Non-recurring expenses (4) 256,265 405 25,856 64,291 -
66,856 15,733 ---------- ----------
(83,732) (118,293) ---------
(16,785)
142,612
54,396
(4,461) -------- ----------
---------- ----------
Income (loss) excluding net realized gains (losses) and cumulative effect (83,732) (122,754) Net realized gains (losses)(4) 10,773 5,838 --------- -------Income (loss) excluding cumulative effect of adopting a new accounting standard (72,959) (116,916) Cumulative effect of adopting a new accounting standard (4) 510 --------- -------Net income (loss) $ (72,959)$(116,406) ========= ========
(16,785)
142,612
54,396
(23,572) (21,422) 977 ---------- ---------- ----------
(40,357)
121,190
55,373
470 ----------
(50) ---------- ----------
$ (39,887) $ 121,140 $ 55,373 ========== ========== ==========
13 <PAGE> Losses and loss expense ratio Policy acquisition cost ratio Administrative expense ratio Combined ratio 119.4% 1.9% 3.7% 125.0% 99.2% 34.5% 11.5% 145.2% 101.1% 17.8% 10.2% 129.1% 75.7% 10.1% 15.7% 101.5% 63.4% 17.5% 18.5% 99.4%
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(1) Losses and loss expenses in ACE Global Market includes $17 million of incurred losses in respect of the RGB syndicate that is in run-off. (2) ACE Global Reinsurance segment includes both property & casualty reinsurance business and life reinsurance business. These two distinct areas have been shown separately in this analysis. (3) Includes ACE Limited, ACE INA Holdings and intercompany eliminations (4) Shown net of income tax. ACE Limited Supplemental Information by Segment Nine months ended September 30, 2001 (in thousands of U.S. dollars) ---------------------------------------------------------------------ACE ACE ConsolGlobal ACE Financial idated Life ReConsolServices Other(3) P&C insurance idated --------- -------- ---------- ---------- ---------Operations Data: Gross premiums written $314,553 Net premiums written 306,610 Net premiums earned 266,549 Losses and loss expenses 186,533 Policy acquisition costs 30,492 Administrative expenses 27,079 --------Underwriting income 22,445 Net investment income 75,657 Amortization of goodwill 3,153 Interest expense 10,486 Income tax expense (benefit) 15,199 ---------
$
-
$7,403,515 $ 4,447,675 4,090,577 3,447,761 557,262 598,816 ---------(513,262) 593,152 59,664 153,094
63,155 63,155 63,155 58,511 1,734
$7,466,670 4,510,830 4,153,732 3,506,272 558,996
64,682 -------(64,682) 7,158 43,470 113,786
2,599 601,415 ---------- ---------311 454 (512,951) 593,606 59,664 153,094 ( 21,254) ----------
( 55,704) (21,254) -------- ---------- ----------
Income (loss) excluding net realized gains (losses), non-recurring expenses and cumulative effect Non-recurring expenses (4)
69,264 ---------
(159,076) --------
(111,614)
765
(110,849) (4,461) ----------
(4,461) ---------- ----------
14 <PAGE> Income (loss) excluding net realized gains (losses) and cumulative effect 69,264 (159,076) (116,075) 765 Net realized gains (losses)(4) (2,228) (25,065) (54,699) --------- -------- ---------- ---------Income (loss) excluding cumulative effect of adopting a new accounting standard 67,036 (184,141) (170,774) 765 Cumulative effect of
(115,310) (54,699) ----------
(170,009)
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adopting a new accounting standard (4) Net income (loss) Losses and loss expense ratio Policy acquisition cost ratio Administrative expense ratio Combined ratio
(23,600) --------- -------$ 43,436 $(184,141) ========= ======== 70.0% 11.4% 10.2% 91.6%
(22,670) ---------- ---------$(193,444) ========== 84.3% 13.6% 14.6% 112.5%
(22,670) ----------
$ 765 $ (192,679) ========== ==========
(1) Losses and loss expenses in ACE Global Market includes $17 million of incurred losses in respect of the RGB syndicate that is in run-off. (2) ACE Global Reinsurance segment includes both property & casualty reinsurance business and life reinsurance business. These two distinct areas have been shown separately in this analysis. (3) Includes ACE Limited, ACE INA Holdings and intercompany eliminations (4) Shown net of income tax. 15 <PAGE> ACE Limited Supplemental Information by Segment Nine months ended September 30, 2000 (in thousands of U.S. dollars) ---------------------------------------------------------------------ACE ACE ACE Global Global ACE Bermuda Markets Reinsurance USA ------------------------Operations Data by Segment: Gross premiums written $510,788 Net premiums written 446,297 Net premiums earned 356,164 Losses and loss expenses 265,002 Policy acquisition costs 14,648 Administrative expenses 22,278 -------Underwriting income (loss) 54,236 Net investment income Amortization of goodwill Income tax expense (benefit) Income (loss) excluding net realized gains (losses) Net realized gains (losses)(2) Net income (loss) 111,240 (658) 1,920 -------162,616 31,432 -------$194,048 ========
$752,791 551,140 454,599 258,271 119,577 54,069 -------22,682 23,420 2,990 11,069 -------27,963 (2,193) -------$25,770 ========
$178,223 146,265 96,062 17,474 17,877 7,806 -------52,905 44,839 10,508 (173) -------87,409 (20,378) -------$67,031 ========
$2,662,542 1,369,785 1,256,042 938,783 118,498 188,552 -------10,209 251,542 405 72,991 -------160,346 (16,836) -------$143,510 ========
Losses and loss expense ratio Policy acquisition cost ratio Administrative expense ratio Combined ratio
74.4% 4.1% 6.3% 84.8%
56.8% 26.3% 11.9% 95.0%
18.2% 18.6% 8.2% 45.0%
74.8% 9.4% 15.0% 99.2%
(1) Includes ACE Limited, ACE INA Holdings and intercompany eliminations (2) Shown net of income tax
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ACE International -------Operations Data by Segment: Gross premiums written $1,553,853 Net premiums written 1,080,317 Net premiums earned 1,037,411 Losses and loss expenses 613,942 Policy acquisition costs 173,462 Administrative expenses 211,589 ---------Underwriting income (loss) 38,418 Net investment income Amortization of goodwill Interest expense Income tax expense (benefit) 69,498 -
ACE Financial Services --------
ACE Other(1) Consolidated ----------------
$288,646 273,907 247,146 163,009 38,566 23,705 --------21,866 71,002 3,154 10,016
46,785 -------(46,785) (9,993) 42,490 122,841
$
$5,946,843 3,867,711 3,447,424 2,256,481 482,628 554,784 ---------153,531 561,548 58,889 166,544 71,981 ---------417,665 11,529 ---------$429,194 ========== 65.5% 14.0% 16.1% 95.6%
19,235 15,664 (48,725) ---------- ---------------Income (loss) excluding net realized gains (losses) 88,681 64,034 (173,384) Net realized gains (losses) (2) 19,779 1,566 (1,841) ---------- ---------------Net income (loss) $108,460 $65,600 $(175,225) ========== ========= ======== Losses and loss expense ratio 59.2% 66.0% Policy acquisition cost ratio 16.7% 15.6% Administrative expense ratio 20.4% 9.6% Combined ratio 96.3% 91.2%
---------------------------------------------------------------------(1) Includes ACE Limited, ACE INA Holdings and intercompany eliminations (2) Shown net of income tax
17 <PAGE> ACE Limited Supplementary Information September 30, 2001 (in millions of U.S. dollars) Interest expense including fees Three Months Ended Sept. 30, 2001 -------------$ 3.7 0.3 0.3 --$ 4.3 -----
Amount Outstanding at Sept. 30, 2001 -------------Short-term Debt ACE INA commercial paper ACE INA bank borrowings ACE Financial Services Note $ 268 158 25 -$ 451 -----
Coupon Rate ----------Floating Floating Floating
Long-term Debt ACE Financial Services Debentures due 2002 ACE INA Notes due 2004 ACE INA Notes due 2006 ACE INA Debentures due 2029 ACE US Senior Notes due 2008 ACE INA Subordinated Notes due 2009
$
75 400 299 100 250
7.75% 8.20% 8.30% 8.875% 6.47% 8.41%
$
1.5 8.2 6.2 2.2 4.0
300 --$1,424 -----
6.3 --$ 28.4 -----
Trust Preferred Securities ACE INA Rhino Preferred
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Securities due 2002 Capital Re LLC Monthly Income Preferred Securities due 2044 ACE INA Trust Preferred Securities due 2029 ACE INA Capital Securities due 2030
$
400 75 100
Floating 7.65% 8.875% 9.70%
$
4.8 1.4 2.2
300 --$ 875 -----
7.3 --$ 15.7 ----0.7 --$ 49.1 =====
Other
Amount Outstanding at Sept. 30, 2001 -------------Mezzanine equity $311 ===
Dividend Rate ------------8.25% ====
Dividend Three Months Ended Sept. 30, 2001 -------------$ 6.4 ====
18 <PAGE> ACE Limited Consolidated Supplemental Information (in millions of U.S. dollars) ---------------------------------------------------------------------September 30, 2001 December 31, 2000 ------------------ ----------------Reinsurance Recoverable Reinsurance recoverable on paid losses and loss expenses $ 1,037 $ 937 Reinsurance recoverable on unpaid losses and loss expenses 10,401 8,767 Provision for uncollectible balances (736) (709) ---------$10,702 $8,995 ====== ===== ---------------------------------------------------------------------Property & Casualty ---------Net Premiums Written by Type of Premium Three months ended September 30, 2001 ACE Bermuda ACE Global Markets ACE Global Reinsurance ACE USA ACE International ACE Financial Services Total Life & Health -----Financial Products --------Total -----
$ 38 86 44 440 224 --$832 ---
$
32 117 --$149 ---
$142 146 1 35 --$324 ---
$
180 86 76 586 342 35 ----$1,305 -----
---------------------------------------------------------------------Three months ended September 30, 2000 ACE Bermuda $ 113 $ $ 69 $ 182 ACE Global Markets 171 6 177 ACE Global Reinsurance 13 13 ACE USA 417 33 450 ACE International 294 31 325 ACE Financial Services 50 50 --------------Total $1,008 $ 37 $ 152 $1,197 -----------------------------------------------------------------------------------Nine months ended September 30, 2001 ACE Bermuda $ 131 $ $ 589 $ 720 ACE Global Markets 515 2 517 ACE Global Reinsurance 264 63 327 ACE USA 1,282 224 1,506 ACE International 748 381 5 1,134
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ACE Financial Services Total
----$2,940 ------
----$ 446 ------
307 ----$1,125 ------
307 ----$4,511 ------
---------------------------------------------------------------------Nine months ended September 30, 2000 ACE Bermuda $ 228 $ $ 218 $ 446 ACE Global Markets 509 42 551 ACE Global Reinsurance 146 146 ACE USA 1,150 220 1,370 ACE International 801 279 1,080 ACE Financial Services 274 274 ------------Total $2,834 ----$ 321 --$ 712 --$3,867 -----
---------------------------------------------------------------------19 <PAGE> 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 ------Nine Months Ended September 30 -----------------2001 2000 -------
Numerator: Income (loss) excluding net realized gains (losses), non-recurring expenses and cumulative effect of adopting a new accounting standard $(390,114) $150,553 $(110,849) $417,665 Feline PRIDES dividend (6,416) (6,537) (19,179) (11,862) Income (loss) available ------------------------------to the holders of ordinary shares, excluding net realized gains (losses), nonrecurring expenses and cumulative effect of adopting a new accounting standard (396,530) 144,016 (130,028) 405,803 Non-recurring expenses (a) (4,461) Net income (loss) ------------------------------available to the holders of ordinary shares, excluding net realized gains (losses) and cumulative effect (396,530) 144,016 (134,489) 405,803 Net realized gains (losses) (a) (52,476) (9,800) (54,699) 11,529 Net income (loss) ------------------------------available to the holders of ordinary shares, excluding cumulative effect (449,006) 134,216 (189,188) 417,332 Cumulative effect of adopting a new accounting standard (a) (22,670) Net income (loss) ------------------------------available to the holders of ordinary shares $(449,006) $134,216 $(211,858) $417,332 Denominator: ------------------------------Weighted average shares outstanding 230,610,425 222,042,432 231,390,682 217,615,849 Dilutive effect of Feline PRIDES 2,462,861 2,663,691 3,067,185 Effect of other dilutive securities 5,907,562 6,679,576 6,440,916 4,431,705 ----------- ----------- ----------- ----------20 <PAGE>
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Adjusted weighted average shares outstanding and assumed conversions
238,980,848 231,385,699 240,898,783 222,047,554 ----------- ----------- ----------- -----------
(a) Shown net of income tax ACE Corporate Announcements - Third Quarter, 2001
September 28, 2001 - Sovereign Announces Its Election to the Berne Union Sovereign Risk Insurance Ltd. announced its election to the International Union of Credit and Investment Insurers (the Berne Union). Sovereign's application for membership was approved at the Berne Union's annual meeting in Biarritz, France on September 19. The Berne Union has a total of fifty-one members from forty-two countries and locations. Sovereign is one of only three private sector political risk insurers to become eligible for, and be approved as, a member of the Berne Union. September 25, 2001 - ACE USA Diversified Products Enters Strategic Alliance with RelMark Program Managers The Diversified Products division of ACE USA announced it has selected RelMark Program Managers to manage a program for fire sprinkler contractors. ACE USA Diversified Products writes customized commercial lines programs through program agents who are experts in particular niche markets. RelMark Program Managers of Exton, PA. will have authority for underwriting, marketing and administration on behalf of ACE USA Diversified Products. September 17, 2001 - ACE Establishes Fund for Victims' Families ACE Limited announced that it has established a fund to aid the families of the victims of the September 11 attacks in the United States. The fund will be administered by charitable trusts operated by ACE Foundations in Bermuda and Philadelphia and will provide one million dollars a year for a period of five years to families affected by the disasters in New York, Washington and Pennsylvania. September 7, 2001 - Sovereign Risk Announces Completion of Samurai/US Dollar Capital Markets Transaction in Brazil Sovereign Risk Insurance Ltd. has announced the issuance of two political risk insurance policies in connection with a capital markets transaction covering a two-tranche Yen and US Dollar-denominated notes issue by Banco Itau. The policies were issued in support of an aggregate amount of US$350 million of notes, US$250 million equivalent of which was denominated in Japanese yen. The issue represents two "firsts" for Brazil -- it is both the first wrapped A-rated deal and the first subordinated bond offering in Brazil. August 23, 2001 - INAMAR Introduces ORCA, Online Real-Time Communications Access INAMAR, the marine insurance products and services arm of the ACE Group of Companies, announced the initial release of a new system - ORCA, Online Real-Time Communications Access. This Internet-based system will be available to appointed recreational marine specialist insurance agents and will provide automated boat and insurance quoting on a 24/7 basis using innovative underwriting tools. August 9, 2001 - ACE Opens Global Headquarters in Bermuda ACE Limited, the holding company for the ACE Group of Companies, opened its new global headquarters in Hamilton, Bermuda. An official opening ceremony attended by the Premier of Bermuda, the Honorable Jennifer Smith DHumL, JP, MP, Members of Parliament, Chairman & Chief Executive Officer of ACE, Brian Duperreault, members of ACE's Board of Directors as well as other invited dignitaries and guests was held at 5.00 p.m., Thursday, August 9, 2001 at the new global headquarters on Woodbourne Avenue. July 31, 2001 - Sovereign Announces Financial Results for Fourth Year of Operations Sovereign Risk Insurance Ltd. announced financial results for its fourth year of operations. For the fiscal year July 1, 2000 - June 30, 2001, Sovereign underwrote 52 new political risk insurance policies. Sovereign's gross premium revenue was $52.5 million, with net revenue of $40.7 million. This compares with $31.3 million in gross premium revenue and $23.5 million in net revenue in FY 1999/2000. Sovereign's combined ratio for the year was 40% and expense ratio was 11%.
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</TEXT> </DOCUMENT> </SEC-DOCUMENT>
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