Ace Insurance has lifted its full-year earnings forecast after a solid second-quarter performance.

For the three months to June 30, Ace recorded net income of $US607 million ($550 million), down from $US677 million ($613.5 million) for the same quarter last year.

Net written premium increased 15% and its combined ratio for the quarter was 92.6%.

Ace Chairman and CEO Evan Greenberg says this was another difficult quarter for natural catastrophes, “while the challenges of a competitive insurance market globally and sluggish economic conditions in developed markets continue to weigh on growth”.

For the second quarter, which featured the US tornado losses, Ace reported pre-tax catastrophe losses, including reinstatement premiums, of $U134 million ($121 million).

Mr Greenberg says he’s confident of double-digit growth in the second half of the year.

“We are well positioned to capitalise on a modestly improving commercial property and casualty pricing environment.”