Bermuda insurance giant ACE Ltd. last night reported its profits for the first quarter of 2004 rose by 80 percent to $447 million after good growth in almost all business segments.

The company, which has its global headquarters on Bermudiana Road, reported net income of $247 million for the first quarter of 2003.

“ACE continues to make progress on every front. We grew rapidly in our key businesses, improved our margins and strengthened our balance sheet,” said Brian Duperreault, chairman and chief executive officer. “(Today) the successful initial public offering of our Financial Guaranty business will be closed, putting ACE in the strongest position it has ever been in to face the new business opportunities that lie ahead.”

At close of trade last night ACE reported that the company's financial results improved over the prior year's results for virtually every business segment.

Income (excluding net realised gains (losses)) for the first quarter increased 47 percent to $411 million compared with $279 million for the same period a year ago.

Mr. Duperreault is shortly due to hand over the helm to Evan Greenberg on May 27 and this is his last earnings report before leaving the company he joined ten years ago and expanded to a global insurance network.

Mr. Greenberg is the son of Maurice (Hank) Greenberg, American International Group Inc., chief executive officer.

The company last night, after close of trade, reported net premiums written increased 11 percent to $3.2 billion, reflecting net premium growth in the property and casualty area of 26 percent.

The company said last night that the property and casualty combined ratio improved to 88.4 percent for the quarter compared with 90.6 percent a year ago.

ACE's operating cash flow amounted to $1.2 billion for the quarter and cash and invested assets increased by $2.2 billion.

Net investment income increased 16 percent to $238 million, reflecting property and casualty net investment income growth of 19 percent.

Shareholders' equity increased six percent from year-end to $9.4 billion and 40 percent over the prior year and tangible equity rose to $6.7 billion, a gain of nine percent from year-end and 68 percent over the prior year.

Debt to total capital ratio fell to 16.1 percent from 16.9 percent at year-end 2003 and annualised return on equity for the quarter ended March 31 was 18.7 percent.

ACE reported good results in most of its key areas, with growth and profits up across segments and geographical locations.

In the North American insurance sector, net premiums written increased 30 percent and the combined ratio improved to 89.4 percent.

In the insurance sector in overseas general net premiums written increased by 22 percent and the segment's combined ratio improved to 89.3 percent.

In global reinsurance net premiums written were up 28 percent and this segment had a combined ratio of 73.5 percent.

In financial services net income increased 48 percent for the quarter reflecting a combined ratio of 67.6 percent.

On April 23, ACE offered approximately 65 percent of Assured Guaranty Ltd. to the public and yesterday ACE said the transaction will net approximately $1 billion to ACE in cash. ACE said last night it expects to use the net proceeds to support its property and casualty insurance operations and for general corporate purposes.

ACE will hold a conference call this morning at 9.30 a.m. Bermuda time.