ACE Limited reported a record year which Evan Greenberg, the company’s chairman and chief executive officer, said was due to strong global premium revenue growth.

The highlights included full-year operating income of $3.2 billion, up 23 percent, and a combined ratio of 88 percent for the year, and 89.3 percent for the last quarter, as well as fourth quarter operating income of $824 million, or $2.39 a share, which is up 67 percent.

The insurer also reported P&C net premiums written up 20 percent, and an operating return on equity of 12.1 percent.

ACE highlighted their 90 percent P&C current accident year combined ratio for the year, excluding catastrophe losses, P&C underwriting income that is up 111 percent, and a record full-year operating and net income of $9.35 per share and $10.92 per share, respectively

The company’s book value is up 4.7 percent for the year, or 11.1 percent excluding unrealised losses, with operating ROE of 12.2 percent, and a full-year net investment income of over $2.1 billion, which is down 1.7 percent

Mr Greenberg said: “ACE had an excellent fourth quarter and a record year. Both our quarterly and annual results were driven by very strong premium revenue growth globally and an exceptional underwriting performance. Put simply, we are growing while achieving good margins — it’s about growth in areas where prices are attractive and securing improved terms including rates in areas where they’re not.

“Record full-year after-tax operating income was $3.2 billion or $9.35 per share, up 23 percent. At our core we are an underwriting company, and our P&C combined ratio for the year of 88 percent produced $1.8 billion of underwriting income, up over 110 percent.

On a current accident year basis excluding catastrophe losses, which is an important way to assess the health of our underlying business, the P&C combined ratio was 90 percent for the year, almost three points better than 2012. Of course, like the rest of the industry, we benefited from light catastrophe losses during the year. In addition, we run our balance sheet prudently starting with our loss reserves, and as a consequence we also benefited from positive prior year reserve development.

“Complementing the excellent underwriting results and a product of our strong cash flow was net investment income of $2.1 billion, which was down less than two percent for the year — a good result given the low interest rate environment. Our record earnings produced a strong operating ROE of over 12 percent while per share book value grew five percent for the year, or 11 percent if you exclude the unrealised losses from our investment portfolio as interest rates rose.

“Excluding crop insurance, P&C net premiums written grew 11 percent last year on a constant-dollar basis. Premium growth in our commercial and speciality P&C businesses, in particular, continued to benefit from our underwriting portfolio management efforts as well as a favourable US rate environment that has continued into the new year.

“We are off to a great start in January, and remembering we are in a risk business, I expect we will have a good year in 2014 as we continue to take advantage of the many growth opportunities we see around the globe including the U.S.”