Bermuda-based insurer ACE Limited has said it expects earnings to fall $1.05 per share in the fourth quarter after a $298 million net after-tax charge, while predicting growth for the whole year.

ACE is due to release its latest quarterly and year-end earnings report after the market closes on February 2.

Meanwhile, analysts that follow the company were predicting, on average, that the company would post earnings of $1.31 per share for the quarter and $4.03 per share for 2004. For the quarter, the low estimate was 93 cents per share while the high was $1.43 per share.

Looking ahead, Prudential Financial was reported in news reports as predicting the company?s 2005 earnings would be affected by sluggish P&C premium growth and that ACE would post a higher combined ratio in the coming year.

Speaking with investment analysts on a conference call, after the asbestos announcement last Thursday, CEO Evan Greenberg spoke briefly of expectations for business in the year ahead. He added that he would speak more on the subject on the company?s earnings call after it posts its latest financial results in the first week of February.

?I see a market that has been softening. There is that tension we constantly see; everyone wants to get a piece so you have more capacity chasing the business.

?In the fourth quarter it was marginally more competitive but pretty stable between third and fourth,? Mr. Greenberg said, adding that in the year ahead, ?we expect a moderate decline in pricing?.

ACE posted record earnings in 2003 of $1.4 billion, which broke down to $4.93 per share.