Global insurer Ace posted a 4.8 percent increase in net income for the fourth quarter, despite taking a near $400 million hit from Superstorm Sandy.But the company’s shares plunged more than four percent in after-hours trading in New York last night after Ace’s full-year 2013 profit forecast fell below analysts’ expectations.Net income for the full year 2012 totalled $2.71 billion, up 76 percent from last year’s $1.54 billion. On an operating basis, earnings rose 13 percent to $2.62 billion.The Switzerland-based company with its roots in Bermuda recorded net income of $765 million, or $2.22 per share, for the fourth quarter, from $735 million, or $2.15 per share, a year earlier.Operating earnings of $1.43 per share were 24 percent lower than the fourth quarter of 2011, but comfortably exceeded analysts’ estimates of $1.28.The drop in operating profit was chiefly the result of Superstorm Sandy, to which Ace attributed $393 million of its $400 million in post-tax catastrophe losses for the three-month period.The company forecast an operating profit of between $6.60 and $7.00 per share for 2013, below the average analyst forecast of $7.89 per share.“Ace had a good fourth quarter, which contributed to an excellent year,” said chairman and CEO Evan Greenberg. Even with the impact of Superstorm Sandy, we produced over $490 million of operating income and increased book value per share two percent.“These results continue to demonstrate the strength of our underwriting culture and balance sheet, and the benefits of our globally diversified business.“For the year, after-tax operating income was $2.6 billion, up 13 percent from 2011. We produced $1.2 billion in underwriting income an increase of 11 percent over prior year and a combined ratio of 93.9 percent. This is an excellent underwriting result, particularly given the worst drought conditions in the US in 25 years as well as the losses from Sandy.“We also produced strong investment results, with investment income down less than three percent a good performance considering record low interest rates.“Our operating return on equity was 11 percent and per share book value grew 12 percent for the year, bringing three-year and five-year compounded annual book value per share growth to 11.4 percent and 10.7 percent, respectively.“Net premiums globally grew six percent for the year and in constant dollars nine percent excluding our crop insurance business.“Our premium revenue growth is benefitting from an improved price environment in the US, our large and growing business presence around the world in Asia, Latin America and Europe, and our unique and balanced portfolio of insurance products including commercial, specialty and personal P&C, personal accident and life.“Insurance pricing in the US continues to improve and price increases are spreading to more product classes a trend that has continued into the first quarter.“With low interest rates pressuring industry returns, we expect this orderly and rational trend of price increases to continue. For our company, a continued focus on underwriting discipline, enhanced through the use of portfolio management and data analytics, is contributing significantly to both our premium growth and underwriting profitability, and we expect this discipline will continue to make a notable difference in our results going forward.”The property and casualty combined ratio - which indicates the proportion of premium dollars spent on claims and expenses - was 105.5 percent, impacted by Superstorm Sandy and a pre-tax charge for asbestos and environmental and other run-off business reserve strengthening of $140 million ($90 million after-tax).This compared to 93 percent in the fourth quarter of 2011.