$150.6 million in income Shareholders of insurance giant ACE Ltd. saw their equity surpass the $5 billion mark yesterday as the company released its third quarter results.

The Bermuda-based company also reported record operating earnings for the quarter.

The balance sheet shows income excluding net realised gains (losses) of $150.6 million for the quarter ended September 30, 2000 compared with $68.6 million for the same quarter in 1999.

Earnings per share excluding net realised gains (losses) and after deducting preferred dividends were $.62 in the third quarter compared with $.35 last year.

Net income in the period $140.8 million compared with $14.8 million in 1999 and earnings per share after deducting preferred dividends was $.58 compared with $.08 for the same quarter last year.

The fully diluted book value per share of the company stood at $22.41 on September 30, 2000.

Chairman and chief executive officer Brian Duperreault, said he was pleased with the results.

"The platform we have built positions us to capitalise on the opportunities present in today's market,'' he said.

"The tremendous market acceptance of the ACE brand, coupled with improving market conditions, helped us to again show significant growth in production while our commitment to maintaining our underwriting standards continues to serve us well with all of our operating units once again reporting combined ratios under 100 percent.'' Gross premiums written during the quarter increased by 29 percent to $2.0 billion, compared with $1.5 billion for the comparable quarter last year.

Net premiums written during the quarter increased by 31 percent to $1.2 billion compared with $911 million for the same quarter last year. Net premiums earned during the quarter increased 23 percent to $1.2 billion from $953 million in the same quarter last year.

Gross premiums written for the first nine months of fiscal 2000 were $5.9 billion compared with $2.5 billion for the same period last year.

For the first nine months of fiscal 2000, net premiums written increased to $3.9 billion compared with $1.6 billion for the first nine months of fiscal 1999. Net premiums earned for the nine months ended September 30, 2000 were $3.4 billion compared with $1.5 billion for the same period last year.

Net investment income, excluding net realised gains (losses), was $198 million for the fiscal 2000 third quarter, compared with $163 million for the same period last year, an increase of 21 percent.

For the first nine months of fiscal 2000, net investment income, excluding net realised gains (losses), was $562 million compared with $334 million for the same quarter last year, a 68 percent increase.

During the 2000 third quarter, ACE had net realised losses, net of tax, of $10 million, compared with net realised losses of $54 million for the same quarter last year.

For the nine months ended September 30, 2000, net realised gains, net of tax, were $12 million, compared with net realised losses of $11 million for the nine months ended September 30, 1999.

CHART