Ace Ltd. posted record quarter results as its profits rose by 15 percent or almost $100 million during the second quarter of 2008, boosted by a unit bought from Aon Corp.

The global insurer, which has its principal executive offices in Bermuda, saw its net income increase to $746 million or $2.20 per share in this year's second quarter from a total of $649 million or $1.93 per share for the same period in 2007.

After-tax operating income also climbed 11 percent from $664 million last year to $738 million in 2008, while the net realised and unrealised loss after tax was $524 million for this quarter, as a result of market pricing changes, with credit impairments at about $28 million.

But net income was down 17 percent for the first six months of 2008 at $1.1 billion compared to $1.35 billion for the corresponding period last year, with the results reflecting the acquisition of Combined Insurance in April this year.

Premium revenue from Ace's insurance units rose 14 percent after the insurer acquired Combined Insurance Co. of America from Aon for $2.4 billion in cash. Buying the Glenview, Illinois-based company expanded Ace's accident, health, and life insurance businesses.

Policy sales for Ace's main North American unit rose one percent from a year earlier, compared to growth elsewhere of 24 percent, or 15 percent excluding the benefit of currency fluctuations.

Ace also said premiums at its reinsurance unit increased 19 percent worldwide. Reinsurers assume a portion of the premiums and risks of primary insurers.

The insurer earned 12.2 cents for every dollar it collected in premium, less than the 12.4 cents it earned in the same period a year earlier.

Evan Greenberg, chairman and CEO of Ace Ltd., said: "It was a record quarter for Ace, with after-tax operating income increasing 11 percent to $738 million. All divisions of the company performed well and contributed to a return on equity of almost 18 percent.

"Additionally, our revenue and earnings benefited from the consolidation of Combined Insurance.

"Global insurance market conditions are soft and will remain so for the foreseeable future, as with the difficult financial and economic conditions. Nonetheless, I remain confident in our ability to produce superior results. We are well-positioned for the future."