Ace increases reserves

Bermuda-based Ace has increased reserves by $2bn (£1.2bn) to cover asbestos lawsuits and settlement...

Bermuda-based Ace has increased reserves by $2bn (£1.2bn) to cover
asbestos lawsuits and settlements against companies it covers. Ace has
added $2.18bn to its reserves, a precaution that will add a net after tax
charge of $354m to fourth quarter earnings. The company was put on
negative watch by ratings agency Standard & Poor's but share prices rose
by nearly 6% at the news. Ace joins Travelers Property Casualty, Chubb and
St Paul, all of whom have allocated hefty sums to pay for asbestosis
claims