Ace increased its profit by 13% to $US2.6 billion ($2.5 billion) in 2012, despite $US502 million ($480.5 million) of pre-tax Superstorm Sandy losses in the fourth quarter.

Chairman and CEO Evan Greenberg says underwriting income rose 11% and the combined ratio was 93.9%.

“This is an excellent underwriting result, particularly given the worst drought conditions in the US in 25 years and the losses from Sandy,” he said.

“We also produced strong investment results, with investment income down less than 3%, a good performance considering record low interest rates.”

Mr Greenberg says premium revenue is growing on improved pricing in the US – with price increases spreading to more classes – and Ace’s growing presence in Asia, Latin America and Europe.

Gross written premium rose 4% to $US21.6 billion ($20.7 billion) and investment income fell 2% to $US2.2 billion ($2.1 billion).