Global insurer Ace has reported a 27% rise in net profit to $US677 million ($755 million) for the second quarter.

However, the Swiss insurer was hit with increased natural disaster losses for the quarter, up by $US50 million ($56 million) to $US81 million ($90 million). This compares to losses of $US31 million ($34 million) in the second quarter last year.

Net written premium for the 2010 quarter rose to $US3.42 billion ($3.81 billion) compared to $US3.41 billion ($3.8 billion) for the corresponding period last year.

Premiums in North America were down falling from $US1.41 billion ($1.57 billion) last year to $US1.32 billion (S1.47 billion) this quarter.

Global reinsurance premiums rose slightly from $US241 million ($269 million) in last year’s second quarter to $US256 million ($286 million) this year, while life premiums grew from $US364 million ($406 million) to $US388 million ($433 million) this quarter.

Ace CEO Evan Greenberg says he’s pleased with the second-quarter result despite tough global markets.

“This was an active quarter for natural catastrophes in the US and our total catastrophe losses were double the amount from the prior year,” he said.

“I believe our combined ratio of 89.7% speaks to our risk management, balance of operations, overall reserve strength and underlying underwriting performance.”

Mr Greenberg has a bullish outlook for the future despite the tough global economy.

“Slow economic recovery in the major developed economies of the US, Europe and Japan and competitive global insurance markets have impacted on total premium growth,” he said. “I expect these conditions will be with us for some time.”

Ace has maintained its operating income guidance of between $US6.25 ($6.97) to $US6.75 ($7.53) per share with Mr Greenberg tipping the result will be “at the top end of the range”.