Ace Ltd., one of the largest U.S. property and casualty insurers, has boosted its asbestos reserves and given a 2005 forecast that disappointed some analysts; it also named Brian E. Dowd chairman and chief executive officer of its U.S. property and casualty retail brokerage division, succeeding Susan Rivera, who resigned.
The Bermuda-based company said late Wednesday that it will take a $298 million after-tax charge in its fiscal fourth quarter to strengthen its asbestos, environmental, and other runoff reserves.
During a conference call Thursday, Ace said it expects a 2005 property and casualty combined ratio of 89% to 91%, assuming $100 million of catastrophe losses. The combined ratio measures the cost of claims and expenses as a percentage of premiums.
"Ace's news is bad but not horrible," Paul Newsome, an analyst at A.G. Edwards, said in a note to clients, according to CBS MarketWatch. The charge is manageable, he said, and means the company will have been profitable in its fourth quarter.
