This ACE aims to provide a full house of insurance services. Through subsidiaries, ACE Limited sells property/casualty insurance, life insurance, and reinsurance through subsidiaries around the globe. It primarily provides property/casualty insurance to commercial and personal customers. Policies offered include general liability, homeowners, auto, accident, workers' compensation, and specialty crop and marine coverage. The company's ACE Tempest Re businesses provide reinsurance to property/casualty insurers in North America and Europe. ACE's life insurance and life reinsurance operations are focused in the US and other select markets. Products are primarily marketed through independent brokers.
The North American insurance segment, which includes property/casualty subsidiaries ACE USA, ACE Bermuda, and ACE Canada, is ACE's largest business segment accounting for about 40% of revenue. The company's ACE International and ACE Global Markets property/casualty insurance units reach into the rest of the world, while its smaller ACE Life insurance division primarily operates in emerging markets in Asia, Europe, and the Americas.
With its operating subsidiaries located in more than 50 countries, ACE serves customers in more than 170 nations.
ACE moved its place of incorporation home from the Caymans to Switzerland in 2008. It kept executive offices in Bermuda and New York.
ACE regularly looks to expand its product offerings and geographical presence through acquisitions and organic measures. For instance the firm launched a new property/casualty division catering to high-net-worth individuals in 2008.
To expand in high-growth geographic markets, it established new offices in Turkey and Panama in 2009 and 2008. Then, in early 2012, the company opened a representative office in Kiev that will allow it to directly engage in the Ukraine insurance market.
Mergers and Acquisitions
In recent years ACE has focused its geographic expansion on smaller acquisitions in emerging global marketplaces. In 2011 ACE entered two new markets for life insurance in North Asia after acquiring New York Life's life insurance operations in Hong Kong and Korea for about $425 million.
In 2012 ACE acquired Indonesian general insurance firm Asuransi Jaya Proteksi for some $130 million. It closed its purchase of Mexican surety insurer Fianzas Monterrey from New York Life for $285 million in 2013, as well as its purchase of another Mexican insurance firm, ABA Seguros, from Ally Financial for $865 million.
ACE broadened its specialty holdings through the 2010 acquisition of the 80% of Rain and Hail Insurance Service which it did not already own for $1.1 billion in cash. Through the deal, ACE secured one of the largest crop insurers in North America. Continuing this trend, in 2011 ACE acquired another agribusiness insurer, Penn Miller Holding, for $107 million.
Past purchases include the $2.6 billion acquisition of Combined Insurance Company of America in 2008 from insurance broker Aon Corporation. The purchase expanded the company's worldwide accident, supplemental health, and life underwriting business, specifically for small businesses and middle-income individuals. A lull in acquisitions carried ACE through 2009 due to economic conditions.