HAMILTON, Bermuda--(BUSINESS WIRE)--ACE Limited (NYSE:ACE) announced today the following earnings guidance for the ACE Group of Companies for the full year 2008:
This guidance does not include the impact of the Combined Insurance Company of America transaction, announced December 17, 2007. Pending the closing of that transaction, which is anticipated to occur in the second quarter of 2008, the Company will provide updated guidance.
The Company also provided the following additional disclosure on the composition of its fixed income investment portfolio in response to the recent volatility in the global credit markets:
“Due to the extraordinary conditions in the global credit markets, we are providing this additional disclosure to our investors to increase overall transparency,” said Philip V. Bancroft, ACE Limited Chief Financial Officer. “As we believe the facts demonstrate, our investment portfolio is conservatively managed with a high average credit quality of AA and a duration of 3.6 years. Quarter-to-date, the overall marked-to-market effect on our fixed income portfolio is positive.”
Additional details on the mortgage-backed and asset-backed components of ACE’s investment portfolio are provided below:
|Mortgage-Backed and Asset-Backed Fixed Income Portfolio
Market Value at September 30, 2007
(in millions of U.S. dollars)
|Total Agency RMBS||7,729||7,729|
|Total Residential Mortgage-Backed||10,793||11||3||13||10,820|
|Total Mortgage-Backed Securities||13,495||19||12||16||13,542|
|Total Asset-Backed Securities||1,325||1||40||10||1,377|
The ACE Group of Companies is a global leader in insurance and reinsurance serving a diverse group of clients. Headed by ACE Limited, a component of the Standard & Poor’s 500 stock index, the ACE Group of Companies conducts its business on a worldwide basis with operating subsidiaries in more than 50 countries. Additional information can be found at: www.acelimited.com.
Cautionary Statement Regarding Forward-Looking Statements:
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. For example, the Company’s forward-looking statements, such as its earnings guidance and statements regarding its investment portfolio, could be affected by competition, pricing and policy term trends, the levels of new and renewal business achieved, market acceptance, changes in demand, the frequency and severity of catastrophic events, actual loss experience, uncertainties in the loss reserving and claims settlement process, new theories of liability, judicial, legislative, regulatory and other governmental developments, litigation tactics and developments, investigation developments, the amount and timing of reinsurance recoverables, credit developments among reinsurers, changes in the cost or availability of reinsurance, market developments, rating agency action, possible terrorism or the outbreak and effects of war and economic, political, regulatory, insurance and reinsurance business conditions, as well as management’s response to these factors, and other factors identified in the Company’s filings with the Securities and Exchange Commission. 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.