Ace Insurance has reported a record operating profit of $US3.32 billion ($4.24 billion) for last year, up 4.7% on the previous year.

Net profit was $US2.85 billion ($3.64 billion), down 23%.

CEO Evan Greenberg says the operating profit was driven by growth in underwriting and investment income, which increased 7% and 5% respectively.

He attributes higher underwriting income to “a particularly strong current accident year performance”. Current accident year underwriting income excluding catastrophes grew 13% for the year.

Global property and casualty (P&C) net written premiums grew 7%, and the P&C combined operating ratio was 87.7%.

“Ace is a truly global multinational insurer,” Mr Greenberg said. “Our diversified presence, product and customer capabilities and distribution focus in 54 countries are a unique source of earnings strength that enables us to take advantage of so many opportunities around the globe.”

In the final quarter of last year Ace finalised its acquisition of Brazilian group Itaú Seguros’ corporate P&C operation, and it announced its intention to acquire Fireman’s Fund’s US high net worth personal lines business.

In an investor conference call last week Mr Greenberg declined to elaborate on the insurer’s acquisition plans for this year, but he discussed consolidation in the reinsurance and wholesale markets, which he considers positive for the industry because it will mean fewer carriers.

“Hopefully that creates some stability and hopefully a bigger player will equal more rational behaviour,” he said.