Insurance giant cuts sub-prime investments
Ace Group has attempted to reassure investors over its exposure to sub-prime investments.
In an earnings guidance released today, the Bermudan insurance giant said it had reduced its sub-prime asset backed investments by almost half in the last two months.
Its sub-prime asset backed holdings were $137m compared to $257m reported on 30 September 2007.
The insurer’s chief officer, Philip Bancroft, said the company had chosen to provide the additional disclosure because if the “extraordinary conditions” in the global credit markets.
Bancroft said: “Our investment portfolio is conservatively managed with a high average credit quality of AA and a duration of 3.6 years. Quarter-to-date, the overall marked-to-market effect on our fixed income portfolio is positive.”
The insurer also said it expected property and casualty net earned premiums to decline 3% to 5% in 2008.
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