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Ace net income down 12.5% in 2nd quarter


Net income declined 12.5% to $779.0 million at Zurich-based Ace Ltd. as the company's agriculture activities weighed upon results.

For the three months ended June 30, net written premiums increased 4.0% to $4.1 billion overall but dropped in the agriculture segment 14.2% to $388 million.

Similarly, the company's combined ratio for the quarter improved to 87.5% from 87.9% in the year-ago period but increased to 91.8% from 89.9% during the same period last year in the agriculture sector during the second quarter.

Net investment income increased 4.2% for the second quarter to $556.0 million.

“Our ability to generate sustained premium revenue growth reflects our deepening presence and capabilities in important long-term growth markets of the world,” Evan G. Greenberg, chairman and CEO of Ace said in the company's earnings statement.

For the six months, net income was off 18.0% to $1.51 billion while net written premiums rose 6.8% to $8.74 billion.

Net investment income rose 4.1% to $1.11 billion for the six months ended June 30 as the company's combined ratio increased slightly to 88.2% from 88.1% in the year-ago period.