Mr. Brian Duperreault, advised how the premier excess liability company experienced "new beginnings as well as steady progress''.

The company said that the third quarter to June 30 was marked by the fact that they began writing two new lines of business, while continuing to reduce excess liability limits for integrated occurrence. Selected risk categories were also targeted for rate increases.

Mr. Duperreault said: "During this quarter, we wrote our first policies in aviation products and excess property. We attracted world class underwriters to spearhead the development of these new lines of business.

"In aviation products, we wrote several accounts, with interest generated from both London and the United States.

"The quality of excess property submissions we received was high, confirming our judgment that there is a demand for ACE to participate in this market.

"Although these lines did not get underway until late in the quarter, both contributed to net premiums written.'' While the worldwide directors and officers (D&O) market remained very competitive, Mr. Duperreault said that more than 90 percent of their clients renewed their cover with ACE. He said: "Overall D&O premiums declined slightly; however, increased marketing efforts produced several new clients from the international arena.

"In excess liability, premiums for the quarter declined due to factors such as the effect of multi-year policies and a reduction in our overall risk exposure. Our satellite line of business had another excellent quarter.'' As previously reported, income for the quarter before net realised gains was $47.5 million or $1.01 per share, compared with last year's third quarter when there was a net loss of $160.6 million.

Realised gains were $49.9 million versus last year's losses of $44.6 million for the same period.

Net income for the quarter was $97.4 million ($2.08 per share), compared with last year's quarterly loss of $205.3 million ($4.33 per share).

Net premiums written dipped from $106.4 million to $105.6 million over the comparative periods. Net premiums earned rose 9.1 percent from $98.5 million to $107.5 million.

Shareholders' equity by June 30 was in excess of $1.3 billion and total assets above $3.0 billion. Net investment income increased by 26.2 percent to $46.5 million, compared with $36.9 million last year.

During the quarter, ACE repurchased 859,500 company shares at a total cost of about $22 million, and, increased dividend payment from 11 to 14 cents a share.

Mr. Duperreault said: "I am proud of our overall accomplishments. We started new lines of business that already are contributing to our overall growth.

Business activity in those lines is very strong, quality is high and future prospects are excellent. These new lines have enhanced our overall profit potential while utilising our existing capital base.

"Concurrently, our insurance portfolio has been improved by reducing risk exposure and improving price.

"These factors -- products that respond to client needs, and our demonstrated ability to price products commensurate with the level of risk -- continue to distinguish ACE as one of the international leaders in the insurance business.''