Ace reports lower profit as commercial insurance rates weaken

Lower insurance prices and a strong dollar dented Ace Ltd.'s first quarter 2015 results.

The global insurer reported a $681 million profit for the first quarter of 2015, down 7.2% compared with thefirst quarter of last year.

In a statement late Tuesday, Ace said that in the first three months of 2015, its gross written premiums were $5.32 billion, down slightly from $5.37 billion for the first quarter of 2014. Net investment income for the first quarter of 2015 was $551 million, broadly flat compared with $553 million posted for the first quarter of 2014.

In a conference call with analyst Wednesday, Evan Greenberg, chairman and CEO of Ace, said the company had had a “reasonably good start to the year” against a backdrop of a competitive marketplace for many lines of business, notably large U.S. commercial lines.

He said that the underwriting environment for insurers had grown moderately more competitive during the first quarter of 2015, with large account business being more competitive than middle market, and wholesale business more competitive than retail.

Ace's combined ratio for property/casualty insurance improved slightly to 88.4% in the first quarter of 2015, compared with 88.8% for the first quarter of last year.