Ace has reported net income of $904m for the first half of 2005, up 3.1% compared with restated profits for the same period last year.

The insurer reported second quarter results that incorporated the impact of restated earnings since 2000.

It announced these last week to reflect adjustments for improper accounting for certain finite reinsurance contracts.

Ace reported investment income increased to $590m, up 20.2% compared with the first half of 2004.

However, despite its North American property and casualty segment growing slightly, its overseas general insurance and global reinsurance units reported slight decreases in revenues.

Ace president and chief executive Evan Greenberg said: "We wrote far less new business and we did a good job holding renewals. We've been maintaining underwriting discipline" and "we will sacrifice top-line growth if that's what it takes".

The insurer reported a combined ratio of 89.5% compared to 87.8% in the first half of 2004.

Greenberg noted that the company estimates net losses from hurricanes Dennis and Emily at about $30m to $35m in total, for both insurance and reinsurance losses.

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