Ace says third-quarter net income fell 14.2% to $US785 million ($894 million) following losses related to annuity reinsurance accounting.

However, operating earnings increased 3.9% to $US891 million ($1.01 billion) on stronger underwriting and investment results.

Gross written premium fell to $US6.26 billion ($7.13 billion) from $US6.37 billion ($7.25 billion) in the corresponding period last year, while net investment income grew to $US566 million ($644 million) from $US522 million ($594 million).

Chairman and CEO Evan Greenberg says property and casualty underwriting income gained 5%, while a combined operating ratio of 86.3% benefitted from relatively light catastrophe losses.

Net property and casualty premiums excluding crop insurance grew 4% in the quarter and 7% for the nine months to September 30.

“While growth naturally slowed a bit in the quarter given a more competitive market globally, we see many opportunities for growth given our broad global diversification,” Mr Greenberg said. “We expect stronger growth in the fourth quarter in constant dollars.”

Net income for the nine months to September 30 grew 16.7% to $US2.3 billion ($2.62 billion), while operating income gained 4.2% to $US2.49 billion ($2.83 billion).

Ace says it has secured regulatory approval for its Itau insurance business acquisition in Brazil and it expects the deal to close at the end of the month.