Shares fall as catastrophe losses hit $390m.
Ace gave a 2010 earnings outlook of $6.25 to $6.75 per share - below Wall Street estimates of $7.64, and the insurer's shares fell nearly 2%, Reuters reports.
Ace included estimated pretax catastrophe losses of $390m, but not any estimate for the potential release of reserves previously set aside to cover claims.
Hexagon analyst David Havens said the announcement was a "modest" negative for Ace, but not surprising given the outlook for lower insurance pricing in 2010. "Watch out for other P&C insurers to follow suit in terms of providing better-than-dour, but less-than-rosy profit outlooks," said Havens.
The Telegraph added that in the third quarter of 2009, ACE saw net written premiums fall 4% to $3.1bn but its combined ratio improved from 97.9% to 88.1%.
