Bermuda insurance giant ACE Limited last night posted net income of $413 million for the second quarter ? an 11 percent increase over the $371 million recorded a year ago.

In recording the strong results, the company ? which celebrates two decades in business next year ? beat out analyst estimates with earnings per share of $1.41 compared to $1.32 per share during the second quarter, 2003.

ACE said that excluding gains on investments, it had recorded earnings of $380 million, or $1.29 per share, which was above the $1.25 per share predicted in a Thomson First Call analyst survey.

That put earnings 33 percent above the $286 million in income excluding net realised gains that was recorded during the same period last year. ACE CEO and president Evan Greenberg cited the company's results as "excellent" and said ACE was positioned to perform despite signs of a turn in the industry towards a 'soft' market where insurance capacity is more readily available creating increased competition and typically lower premium rates.

"This was an excellent quarter.

"All of our business segments performed well, which is a reflection of the investments we have made to increase both our product capability and physical presence globally.

"In light of a softening market, I remain confident in our ability to perform given our underwriting discipline and the diversity of our business opportunities."

Until May, Mr. Greenberg was COO of ACE but took the helm of the company during the second quarter after succeeding longtime chief Brian Duperreault, who remains chairman of ACE's board. The company also said it had seen a 19 percent jump in the net premiums written to $2.9 billion, and net investment income was up 12 percent to $236 million.

The company's solid income and business levels follow it having posted record income last year of $1.4 billion. Although the company's earnings statement for the second quarter was released after market close, investors reacted favourably to the prospect with the company's shares on the New York Stock Exchange closing up 12 cents to $39.57. Earnings call: ACE Limited's earnings call takes place this morning at 9:30 a.m. Bermuda time.

Access details can be found on the company's website, www.acelimited.com.