Global insurer Ace last night reported quarterly operating profit that comfortably beat analysts’ expectations and raised its outlook for the year.Operating earnings of $743 million broke down to $2.17 per share, above the forecast of $1.92 per share of analysts polled by Thomson Reuters. Operating return on equity was 12.6 percent.Ace, based in Switzerland and with substantial operations in Bermuda, said performance was bolstered by low catastrophe losses and strong accident year underwriting results.For the full year, Ace now expects an operating profit of between $7.20 and $7.60 per share, up from its previous estimate of between $7.03 and $7.43 per share.Net earnings however fell 45 percent to $328 million, or 96 cents per share, for the second quarter, from $594 million, or $1.74 per share, a year earlier.For the first six months of the year, Ace saw its profits soar by 54 percent to $1.3 billion.Ace CEO Evan Greenberg said: “Ace had a very strong second quarter, with excellent operating results that were ahead of plan despite a challenging and slowing global economy.“Our underwriting results this quarter were again distinguishing, with a P&C [proerty and casualty] combined ratio of 88.7 percent. Ace’s operating performance has been strong all year with earnings for the first six months exceeding $1.4 billion or $4.22 per share.“Book value, which grew 1.3 percent in the quarter and is up almost six percent for the year, was impacted by the eurozone debt crisis and the consequent flight to safety, which affected foreign exchange, interest rates and equity markets.“Total company net premiums written grew 4.5 percent in the quarter, or 6.5 percent adjusting for the impact of foreign exchange. As we said last quarter, our premium growth rate has been accelerating as the year progresses.“We are benefiting from strong, broad-based growth, both geographic and product, along with an improving P&C price environment globally. For the first time, pricing in our international P&C operations in aggregate turned positive, whereas for our US business, rates continued to rise, up 4.7 percent on average for the quarter.”The company is a major US crop insurer and Mr Greenberg said the company’s second-half results will be impacted by claims relating to the hot, dry weather that has damaged corn crops across the US.“Drought conditions in the US are impacting our crop insurance business and will affect our earnings in the second half of the year as described in our updated guidance, Mr Greenberg said.“Crop insurance aside, we are optimistic about our revenue and earnings prospects for the balance of the year and we are well positioned to take advantage of the positive trend in P&C prices globally.“At the same time, we are mindful of the economic and political headwinds beginning with the eurozone crisis and the US fiscal cliff, which are impacting economic conditions and business confidence in the US, China and the balance of the world and the uncertainties these present.”