ACE Ltd. last night posted record income after the Bermuda insurance giant announced that during the second-quarter this year its profits more than tripled.

This spectacular rise was due to income being boosted by investment gains and 28 percent growth in written premiums.

After the close of trade last night, the company, which has its global headquarters at Pitts Bay Road, said second-quarter income rose to $371 million, or $1.32 a share, from $104 million, or 36 cents a share, a year earlier.

"If I had to single out a defining characteristic of the second quarter, I would point to the significant increase in our capital strength," said Brian Duperreault, chairman and chief executive officer at ACE.

"Everything that happened this quarter contributed to our capital resources. We posted record income, generated positive gains in both our fixed income and equity portfolios, completed the conversion of $311 million of mezzanine securities to common equity and completed the issue of $575 million of perpetual preferred shares.

"The result was a 22 percent increase in shareholders' equity for the quarter from $6.7 billion to $8.2 billion."

Excluding realised investment gains this year and investment losses a year earlier, ACE's second-quarter earnings rose to $1.01 a share from 82 cents a share, the company said.

ACE also said its net premiums written rose to $2.41 billion from $1.88 billion a year earlier. Net premiums earned rose 46 percent to $2.3 billion from $1.58 billion.

Net realised gains, net of income tax, were $85 million ($0.31 per share) compared with net realised losses of $125 million ($0.46 per share) for the same quarter in 2002.

Net unrealised gains totalled $273 million compared with $107 million for the same quarter in 2002.

Net premiums written increased 28 percent over the same quarter a year ago, while net premiums earned increased 46 percent quarter on quarter.

The combined ratio was 91.7 percent for the quarter compared to 91.5 percent for the second quarter 2002. Operating cash flow was $978 million for the quarter compared with $427 million in the comparable quarter of 2002.

Net investment income rose 5 percent to $211 million for the quarter compared with $201 million in the prior year's quarter.