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Ace reports lower net income in third quarter

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Ace Ltd. reported third quarter net income of $785.0 million, down 14.2% from the same period last year as adjusted net realized losses of $106 million blunted gains in premiums and investments, the company announced Tuesday.

Net premiums written for the three months ended Sept. 30 rose 2.4% to $4.73 billion while net investment income grew 8.5% to $566.0 million.

The company’s third quarter combined ratio improved slightly to 86.3% from 86.5% in the year-ago period.

An adjusted net realized loss of $106 million — including a loss of $95 million from derivative accounting related to variable annuity reinsurance — compared with a gain of $59 million a year ago, hurt net income.

“While growth naturally slowed a bit in the quarter given a more competitive market globally, we see many opportunities for growth due to our broad global diversification. We expect stronger growth in the fourth quarter in constant dollars,” ACE Chairman and CEO Evan G. Greenberg, said in the company’s earnings statement.

For the nine months ended Sept. 30, net income declined 16.7% to $2.29 billion.

Nine-month net premiums written rose 5.2% to $13.47 billion as net investment income grew 5.6% to $1.68 billion.

The company’s nine-month combined ratio was steady at 87.5%.

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