Bermuda insurance giant ACE Limited last night posted profits of $247 million - an increase of nearly 25 percent for the first quarter of 2003.

The company's boss hailed the results as an excellent start to the year. But they were marred by poor performance of investments affected by the global market slump.

Brian Duperreault (pictured), chairman and Chief Executive Officer of ACE, said: "This was a good quarter for us by any standard of measurement.

"We were able to demonstrate the earning power we have been building over the last three years.

"We benefited from growth in earned premiums, improved underwriting margins and strong positive cash flow."

Net income (including realised losses) for the quarter was $247 million compared with net income of $198 million for the same period a year ago.

ACE also reported net income per share was $0.90 for the period compared with $0.70 for the same quarter last year, a gain of 29 percent.

It posted a net operating income was $279 million compared with $216 million for the same quarter in 2002.

Net investment income rose 3 percent to $206 million for the quarter compared with $200 million in the prior year's quarter.

Mr. Duperreault said in a written statement last night about the results: "Low investment yields limited our growth in investment income to 3 percent, which continues to lag the growth in underwriting income.

"Our annualised ROE (return on earnings) from operations was 16.7 percent. In summary, an excellent start for the current fiscal year."

The company also posted net realised losses, net of tax, were $32 million, compared with net realised losses of $18 million for the same quarter in 2002.

Unrealised gains totalled $79 million compared with $84 million for the same period in 2002.

Diluted book value per share at March 31, 2003 was $25.14 compared with $24.16 at December 31, 2002, and $23.78 at March 31, 2002.

Net premiums written increased 48 percent over the same quarter a year ago, while net premiums earned increased 52 percent quarter on quarter.

ACE will host a live webcast of its first quarter earnings conference call today at 8.30 a.m. EST.

The public can access both the webcast, available on a listen-only basis, and the financial supplement at http://www.acelimited.com