Insurance giant Ace yesterday posted first quarter profits of $681 million — down $53 million on the same period last year.

The firm reported operating after-tax operating income of $745 million for the three months to the end of March, down 4.2 per cent on the $777 million in the corresponding period in 2014.

Operating income was $2.25 per share compared to $2.27 during the first quarter of 2014.

The firm said “unfavourable” foreign currency movement had hit operating income by $20 million, equivalent to six cents per share, compared with the first quarter of last year.

The company’s global property and casualty net premiums written grew by five per cent on a “constant dollar basis”, but hit by the stronger dollar which reduced book value by $441 million in the quarter.

Global property and casualty premiums, excluding agriculture, were up five per cent and underwriting income from the sector totalled $402 million, a 7.8 per cent increase.

ACE chairman and CEO Evan Greenberg said: “Ace’s first quarter earnings per share were essentially flat with prior year — a good result for a global, dollar-based insurer.

“We overcame unfavourable foreign exchange movement and a number of favourable items from prior year to produce after-tax operating income of $745 million, or $2.55 per share.”

Mr Greenberg added that earnings had been boosted by “excellent underwriting” and investment income results.

He added: “We obviously have the headwinds of foreign exchange, an underwriting environment that continues to grow more competitive for our commercial property and casualty businesses, as well as low interest rates.”

But he said: “Given our excellent diversification by product, geography and consumer segment, many areas of our business present attractive growth prospects, particularly in the US, Latin America and Asia and, as a result, we expect our premium revenue growth for the balance of the year to be in the mid-single digits on a published basis.”

The firm also announced net investment income of $551 million and operating cash flow of $1.1 billion for the quarter.