Ace sustains massive Q4 loss due to writedowns
Ace Insurance has suffered a 96% plunge in fourth-quarter net profit, due mainly to investment writedowns.
The Switzerland-based company banked just $US20 million ($31 million) in net profit during the quarter, against $US572 million ($887 million) in the corresponding period last year.
Financial market volatility in both the credit and equity markets led to net realised losses climbing from $US121 million ($188 million) in the fourth quarter of 2007 to $US604 million ($937 million).
For the full year, Ace returned net profit of $US1.2 billion ($1.9 billion), against $2.6 billion ($4 billion) the previous year.
The Switzerland-based company banked just $US20 million ($31 million) in net profit during the quarter, against $US572 million ($887 million) in the corresponding period last year.
Financial market volatility in both the credit and equity markets led to net realised losses climbing from $US121 million ($188 million) in the fourth quarter of 2007 to $US604 million ($937 million).
For the full year, Ace returned net profit of $US1.2 billion ($1.9 billion), against $2.6 billion ($4 billion) the previous year.