Global insurer Ace has reported a mixed first quarter, with profit down 29.8% to $US734 million ($791.7 million) amid higher catastrophe losses and a capital loss.

However, underwriting and investment incomes were strong, according to Chairman and CEO Evan Greenberg.

Underwriting income gained 7% to $US432 million ($466 million) and premium growth was “exceptionally strong”.

Gross written premium was up 8.3% to $US5.37 billion ($5.79 billion) and net investment income grew 4% to $US553 million ($596.4 million).

The property and casualty (P&C) combined operating ratio deteriorated to 88.8% from 88.2% in the corresponding period of last year.

Internationally, pricing was generally flat.

“Commercial P&C market conditions globally are stable, but are growing more competitive,” Mr Greenberg said. “This is not a surprise – we are a disciplined organisation and prepared.

“Given our excellent diversification by product, geography and distribution, many areas of our business have attractive growth prospects.”

Pre-tax catastrophe losses grew 65% to $US53 million ($57.16 million).

Ace posted a $US43 million ($46.37 million) capital loss in the quarter, following a $US207 million ($223.24 million) capital gain in the first quarter last year.