ACE Digesting Guidance (ACE)

Posted in pre-market 
January 5th, 2010

ACE Limited (NYSE: ACE) is down on guidance.  The P&C and reinsurance giant gave guidance for 2010 with expected operating income per share for 2010 to be between $6.25 and $6.75 EPS versus a Thomson Reuters consensus estimate of $8.11 EPS.  Catastrophe losses were put at $390 million pre-tax and $317 million after-tax.  There is a potential issue of whether these are comparable or not, which the company noted: “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. Current third party earnings estimates for the company, however, may include assumed amounts of prior period reserve development and as a result may not be viewed on a comparable basis to this earnings guidance.”

ACE shares are down over 1% at $48.76 on over 50,000 shares as of 8:46 AM EST.  This is already off the post-headline lows that came out at 8:30 AM EST.  The 52-week trading range is $30.92 to $55.64 and the average daily volume is 1.86 million shares.

Jon C. Ogg
January 5, 2010

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