Ace Ltd has reported record fourth-quarter net investment income of $577m versus $557m a year earlier, taking the total for 2014 to $2.3bn compared with $2.1bn in 2013 and contributing to all-time high operating results.
Evan Greenberg, Ace chairman and CEO, said the increase in net investment income during the final quarter reflected strong operating cash flow and was "an exceptional result given the historically low interest-rate environment."
While Ace's operating income finished the year at a record $3.3bn or $9.79 per share, up 4.7%, net income fell 22.9% to $2.8bn ($8.42 per share) reflecting the decline in interest rates and its impact on mark-to-market accounting related to the company's variable annuity reinsurance business.
"Quarterly and annual results were driven by growth in both underwriting and investment income," noted Greenberg.
Ace Ltd, the parent company of Ace Group, is listed on the New York Stock Exchange and is a component of the S&P 500 index.