Bermuda insurance giant ACE has seen its profits recover for the year 2000, rising nearly 50 percent from the year before, reflecting the improvement in the market over the past year.

The company, which is nearly finished building its new headquarters on Bermudiana Road, said it had been an "outstanding year'' and reported its net income had jumped to $542 million -- up 48.8 percent or $178 million from 1999, when it stood at $365 million.

The results beat analysts' average forecast of 64 cents per share profit, according to research firm First Call/Thomson Financial.

But 1999 had been a bad year for the industry, with some companies forced into negative figures because of large payouts due to the amount of natural catastrophes in the market.

And ACE was no exception. It saw profits plummet by nearly 35 percent or $195 million after huge payouts the year ended 31 December 1999.

But recovery industry-wide has been seen in this year's results, ended 31 December 2000. Yesterday ACE chairman and chief executive officer Brian Duperreault said 2000 had been a good year.

He said: "This was an outstanding year for the ACE Group. We set new records in virtually all financial categories and achieved our goals of integration, expense control and increased profitability.

"With the improvement in industry conditions accelerating, I am pleased that we are beginning the year with the wind at our backs.'' ACE Limited reported for the year ended December 31, 2000, income excluding net realised gains or losses and non-recurring expenses was $582 million compared with $330 million last year.

Earnings per share, excluding net realised gains or losses, after deducting preferred dividends, of $2.48 for the year ended December 2000 compared with $1.67 per share for 1999.

ACE profits bounce back Net earnings per share, after deducting preferred dividends, was $2.31 for the current year compared with $1.85 last year.

The fully diluted book value per share of the company at December 31, 2000 was $23.25.

Gross premiums written for fiscal 2000 were $7.6 billion compared with $3.9 billion for fiscal 1999, an increase of 96 percent.

For fiscal 2000, net premiums written increased 96 percent to $4.9 billion compared with $2.5 billion for fiscal 1999.

Net premiums earned for the year ended December 31, 2000 were $4.5 billion compared with $2.5 billion for fiscal 1999, an 82 percent increase.

Net investment income, excluding net realised gains (losses), was $209 million for the fiscal 2000 fourth quarter, compared with $159 million for the same period last year.

For the year net investment income, excluding net realised gains (losses), was $771 million compared with $493 million for fiscal 1999.

For the year, net realised losses, net of tax, were $39 million, compared with net realised gains of $42 million for fiscal 1999.

The Bermudian company quadrupled its premium income in 1999 with its $1.2 billion purchase of CIGNA Corp.'s property-casualty insurance operations.

ACE's shares closed at $38.38 on the New York Stock Exchange yesterday, below the 52-week high of $43.94.