ACE Limited reported unaudited consolidated earnings results for the fourth quarter and year ended December 31, 2012. For the quarter, the company reported gross premiums written of $5,146 million against $4,864 million for the same period last year. Net premiums written were $3,657 million against $3,630 million for the same period last year. Net premiums earned were $3,848 million against $3,831 million for the same period last year. Net investment income was $567 million against $565 million for the same period last year. Net income was $765 million or $2.22 per diluted share against $735 million or $2.15 per diluted share for the same period last year. Operating cash flow was $970 million against $472 million a year ago. Operating return on equity was 8.0% and return on equity computed using net income was 11.2% against 11.6% and 12.3%, respectively a year ago. Income excluding net realized gains was $492 million or $1.43 per diluted share against $648 million or $1.90 per diluted share a year ago. Income before tax was $630 million against $855 million a year ago. Income excluding net realized gains before tax was $335 against $756 million a year ago. Operating ROE for the quarter was 8%.

For the year, the company reported gross premiums written of $21,593 million against $20,831 million for the same period last year. Net premiums written were $16,075 million against $15,372 million for the same period last year. Net premiums earned were $15,677 million against $15,387 million for the same period last year. Net investment income was $2,181 million against $2,242 million for the same period last year. Net income was $2,706 million or $7.89 per diluted share against $1,540 million or $4.52 per diluted share for the same period last year. Operating cash flow was $4.0 billion against $3.47 billion a year ago. Operating return on equity was 11.0% and return on equity computed using net income was 10.4% against 10.6% and 6.5%, respectively a year ago. Book value per share increased 1.9% to $80.90 from $79.36 at September 30, 2012, and increased 12.0% from $72.22 at December 31, 2011. Tangible book value per share increased 2.5% to $66.28 from $64.67 at September 30, 2012, and increased 14.3% from $57.97 at December 31, 2011. Income excluding net realized gains was $2,624 million or $7.65 per diluted share against $2,331 million or $6.84 per diluted share a year ago. Income before tax was $2,976 million against $2,042 million a year ago. Income excluding net realized gains before tax was $2,836 against $2,813 million a year ago. Operating ROE for the year was 11%.

For the fiscal 2013, operating income is expected to range between $6.60 and $7.00 per share. Catastrophe losses included in the estimate are $475 million pre-tax ($395 million after-tax), which are in line with last year's catastrophe loss guidance. The operating income projections included in this guidance are for current accident year results only and by definition do not include any estimate for prior period reserve development.