Global insurer Ace recorded net income of $US681 million ($877 million) for the first quarter, down 7.2% on the corresponding period last year.

Gross written premium dropped 1% to $US5.32 billion ($6.85 billion), while investment income fell 0.4% to $US551 million ($710 million).

The combined operating ratio improved slightly to 88.4% from 88.8%.

Chairman and CEO Evan Greenberg says the figures represent “a good result for a global, dollar-based insurer. We overcame unfavourable foreign exchange movement and a number of favourable items from the prior year to produce after-tax operating income of $US745 million ($960 million), or $US2.25 ($2.9) per share.

“Our earnings benefitted from excellent underwriting and investment income results.”