Ace Ltd., the Bermuda-based business insurer with operations in more than 50 countries, said fourth-quarter rates for US property coverage fell about 15 percent.

"Prices continue to decline around the world," chief executive officer Evan Greenberg told analysts and investors in a conference call this week.

Mr. Greenberg has been expanding Ace's life insurance business and seeking growth beyond the US, where competition is forcing down prices for commercial insurance.

Ace's fourth-quarter earnings, announced after the close of regular trading on US markets yesterday, beat analysts' expectations as property and casualty premium revenue beyond North America increased 12 percent.

"Ace is better positioned entering 2008 than many others, as it has a more diversified business mix," David Small, an analyst at Bear Stearns Cos. in New York, said in a note to investors. "This was a solid quarter for Ace."

The company has declined 1.4 percent in the past year compared with the 17 percent fall in the 24-member KBW Insurance Index.

Ace is adding four million policyholders in North America, Europe, and Asia after agreeing in December to buy accident, health and life insurer Combined Insurance Co. of America for $2.4 billion in cash.

Yesterday Ace announced that, subject to market conditions, its subsidiary, AceINA Holdings Inc., intends to sell up to $300 million of senior notes, with the proceeds going towards financing the acquisition. The company may seek further purchases, Mr. Greenberg said.

Although annual profit reached a record $2.58 billion for 2007, fourth-quarter net income declined 14 percent to $572 million on investment losses including $73 million related to the company's stake in financial guarantor Assured Guaranty Ltd.Ace owns 24 percent in Bermuda-based Assured Guaranty, according to Bloomberg data.

"We will not be increasing our exposure there," Greenberg said. "That is not a business that is a part of Ace's long-term strategy."