Catastrophic global events at the end of last year were weathered by a Bermuda insurer and reinsurer without it encountering unusually large losses, its chief executive reported yesterday.

ACE Limited Chairman and CEO Brian Duperreault made the announcement as the company reported its fourth quarter and year-end earnings.

He said: "While heavy catastrophe losses dominated the fourth quarter's results for most companies, particularly in Europe, the ACE Group of Companies weathered these events without incurring any unusually large losses.

"Our underwriters did an excellent job of risk management.'' Mr. Duperreault continued: "ACE has entered the year 2000 as a unique worldwide insurance and reinsurance enterprise.

"The acquisitions of ACE INA and Capital Re have added substantial global diversification and new product capabilities to the Group.

"ACE INA has transformed the ACE Group, giving it an international presence that can not be easily replicated, while Capital Re establishes ACE as a significant player in the financial guarantee reinsurance business.'' ACE Limited reported income, excluding net realised gains and non-recurring expenses, for the fiscal 1999 fourth quarter ended December 31, 1999, of $101.7 million, or $0.52 per share, compared with $108.4 million, or $0.55 per share, for the same quarter in 1998.

Net income for the fiscal 1999 fourth quarter was $152 million, or $0.78 per share, compared with $238.5 million, or $1.21 per share, for the same quarter in 1998.

Included in the results of the fourth quarter of fiscal 1999 were certain non-recurring expenses amounting to $3 million, net of related income taxes.

As the Company changed its year-end during 1999, all year on year comparisons in this release are between the year ended December 31, 1999 (fiscal 1999) and the year ended September 30, 1998 (fiscal 1998).

The quarter on quarter comparisons are between the quarter ended December 31, 1999 and the quarter ended December 31, 1998.

For fiscal 1999, income excluding net realised gains and non-recurring expenses was $329.8 million or $1.67 per share compared with $418.4 million or $2.21 per share for fiscal 1998.

Net income for the year was $365 million or $1.85 per share versus $560.2 million or $2.96 per share for fiscal 1998.

Earnings per share calculations are based on the weighted average number of shares calculated in accordance with FAS 128 on a diluted basis.

The fully diluted book value per share of the company at December 31, 1999 was $20.28.

Gross premiums written during the December 31, 1999 quarter increased by 443 percent to $1.4 billion, compared with $254.1 million for the comparable quarter in 1998. Net premiums written during the December 31, 1999 quarter were $851.5 million compared with $154.1 million for the same period in 1998.

Net premiums earned during the quarter were up 334.5 percent to $947.2 million from $218.0 million in the same quarter in 1998.

Gross premiums written for fiscal 1999 were $3.9 billion compared with $1.2 billion for fiscal 1998, an increase of 211.5 percent.

For fiscal 1999, net premiums written increased 182.5 percent to $2.5 billion compared with $883.3 million for fiscal 1998.

Net premiums earned for the year ended December 31, 1999 were $2.5 billion compared with $896.6 million for fiscal 1998, a 177.2 percent increase.

Net investment income, excluding net realised gains, was $159 million for the fiscal 1999 fourth quarter, compared with $85.1 million for the same period last year.

For the year ended December 31, 1999, net investment income, excluding net realised gains was $493.3 million compared with $324.3 million for fiscal 1998.

ACE weathers the storm During the 1999 fourth quarter, ACE had net realised gains, net of tax, of $53.3 million, compared with net realised gains of $130.1 million for the same quarter in 1998.

For the year ended December 31, 1999, net realised gains, net of tax, were $42.1 million, compared with net realised gains of $188.4 million for fiscal 1998.

At a Glance Fiscal 1999 Q4 net income $152 million compared with $238.5 million in 1998 Net income for the year $365 million compared with $560.2 million in 1998 1999 Q4 net premiums written $851.5 million compared with $154.1 million in 1998 Net premiums written for the year up 182.5 percent to $2.5 billion compared with $883.3 million for 1998.

Brian Dupperault