0000902561-01-500303.txt : 20011030
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: ACE LTD
CENTRAL INDEX KEY: 0000896159
STANDARD INDUSTRIAL CLASSIFICATION: FIRE, MARINE & CASUALTY INSURANCE [6331]
IRS NUMBER: 000000000
STATE OF INCORPORATION: D0
FISCAL YEAR END: 1231
FILING VALUES:
FORM TYPE: 8-K
SEC ACT: 1934 Act
SEC FILE NUMBER: 001-11778
FILM NUMBER: 1766408
BUSINESS ADDRESS:
STREET 1: ACE BLDG
STREET 2: 30 WOODBOURNE AVE
CITY: HAMILTON HM 08 BERMU
STATE: D0
ZIP: 00000
BUSINESS PHONE: 8092955200
MAIL ADDRESS:
STREET 1: P O BOX HM 1015
CITY: HAMITON BERMUDA
STATE: D0
ZIP: 00000
8-K
1
form8k.txt
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 1-11778 98-0091805
(State or other jurisdiction (Commission (I.R.S. Employer of Incorporation)
File Number) Identification No.)
ACE Global Headquarters
17 Woodbourne Avenue
Hamilton, Bermuda HM 08
(Address of principal executive offices) Zip Code)
Registrant's telephone number, including area code: (441) 295-5200
Not Applicable
(Former name or former address, if changed since last report)
Item 5. Other Information
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.
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
EXHIBIT INDEX
Exhibit
Number Description
------ -----------
99.1 Press Release, dated October 25, 2001
EX-99
3
exh99.txt
FOR IMMEDIATE RELEASE
Investor Contact: Helen M. Wilson
(441) 299-9283
Media Contact: Wendy Davis Johnson
(441) 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.
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.
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.
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
Policy acquisition costs 204,666 168,258 558,996 482,628
Administrative expenses 207,389 177,912 601,415 554,784
---------- ---------- ---------- ----------
Underwriting income (loss) (583,959) 55,725 (512,951) 153,531
Net investment income 192,909 197,584 593,606 561,548
Amortization of goodwill 19,912 19,919 59,664 58,889
Interest expense 49,130 55,408 153,094 166,544
Income tax expense (benefit) (69,978) 27,429 (21,254) 71,981
---------- ---------- ---------- ----------
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
Non-recurring expenses (a) - - (4,461) -
---------- ---------- ---------- ----------
Income (loss) excluding net
realized gains (losses) and
cumulative effect (390,114) 150,553 (115,310) 417,665
Net realized gains (losses) (a) (52,476) (9,800) (54,699) 11,529
---------- ---------- ---------- ----------
Income (loss) excluding
cumulative effect (442,590) 140,753 (170,009) 429,194
Cumulative effect of
adopting a new accounting
standard (a) - - (22,670) -
---------- ---------- ---------- ----------
Net income (loss) $ (442,590) $ 140,753 $ (192,679) $ 429,194
========== ========== ========== ==========
(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 $(1.72) $0.65 $(0.55) $1.86
Earnings (loss) per share
excluding net realized gains
(losses) and cumulative effect
of adopting a new
accounting standard $(1.72) $0.65 $(0.57) $1.86
Earnings (loss) per share
excluding cumulative effect
of adopting a new
accounting standard $(1.95) $0.60 $(0.81) $1.92
Earnings (loss) per share $(1.95) $0.60 $(0.90) $1.92
Weighted average shares
outstanding 230,610,425 222,042,432 234,485,610 217,615,849
(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 $(1.66) $0.62 $(0.53) $1.83
Earnings (loss) per share
excluding net realized gains
(losses) and cumulative effect
of adopting a new
accounting standard $(1.66) $0.62 $(0.55) $1.83
Earnings (loss) per share
excluding cumulative effect
of adopting a new
accounting standard $(1.88) $0.58 $(0.78) $1.88
Earnings (loss) per share $(1.88) $0.58 $(0.87) $1.88
Weighted average shares
outstanding 238,980,848 231,385,699 243,993,711 222,047,554
(a) Shown net of income tax
(b) EPS calculations provided on page 6 of this release
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:
Investments and Cash:
Fixed maturities available for sale, at fair value
(amortized cost $11,051,756 and $10,640,937) $11,375,713 $10,721,309
Equity securities, at fair value
(cost $525,325 and $495,049) 427,929 532,046
Short-term investments, at fair value
(amortized cost $1,439,235 and $1,369,784) 1,439,235 1,369,784
Other investments, at fair value
(cost $568,745 and $518,130) 594,923 531,116
Cash 754,588 608,069
----------- -----------
Total investments and cash $14,592,388 $13,762,324
Reinsurance recoverable 10,701,733 8,994,940
Total assets $34,909,275 $31,689,526
Unpaid losses and loss expenses $19,883,757 $17,388,394
Total liabilities $29,580,445 $25,958,265
Mezzanine equity $ 311,050 $ 311,050
Shareholders' equity
Ordinary shares ($0.041666667 par value,
300,000,000 shares authorized; 226,390,282
and 232,346,579 shares issued and outstanding) $ 9,433 $ 9,681
Additional paid-in capital 2,575,080 2,637,085
Unearned stock grant compensation (40,129) (29,642)
Retained earnings 2,320,704 2,733,633
Accumulated other comprehensive income 152,692 69,454
----------- -----------
Total shareholders' equity $ 5,017,780 $ 5,420,211
----------- -----------
Total liabilities, mezzanine equity
and shareholders' equity $34,909,275 $31,689,526
=========== ===========
Fully diluted book value per share $21.66 $23.25
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 Nine Months Ended
September 30 September 30
---------------------- ---------------------
2001 2000 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), non-recurring
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:
Denominator for basic earnings
per share:
Weighted average shares outstanding 230,610,425 222,042,432 234,485,610 217,615,849
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
---------- ---------- ---------- ----------
Denominator for diluted earnings per share:
Adjusted weighted average shares
outstanding and assumed conversions 238,980,848 231,385,699 243,993,711 222,047,554
----------- ----------- ----------- -----------
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 $(1.72) $0.65 $(0.55) $1.86
Earnings (loss) per share excluding
net realized gains (losses) and
cumulative effect of adopting a
new accounting standard $(1.72) $0.65 $(0.57) $1.86
Earnings (loss) per share excluding
cumulative effect of adopting a
new accounting standard $(1.95) $0.60 $(0.81) $1.92
Earnings per share $(1.95) $0.60 $(0.90) $1.92
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 $(1.66) $0.62 $(0.53) $1.83
Earnings (loss) per share excluding
net realized gains (losses) and
cumulative effect of adopting a
new accounting standard $(1.66) $0.62 $(0.55) $1.83
Earnings (loss) per share excluding
cumulative effect of adopting a new
accounting standard $(1.88) $0.58 $(0.78) $1.88
Earnings per share $(1.88) $0.58 $(0.87) $1.88
(a) Shown net of income tax