While many companies struggle, ACE Brazil is on a high. 2010 proved to be particularly successful, during which period the company increased premiums issued well beyond the two-digit expansion goal established in the previous year. Significantly, the positive result was accomplished at a trying time, as intensive discipline was applied in the underwriting profit of the businesses. The company’s main objective has been to successfully position itself among the five major insurance companies in each of the lines of business it operates in. Performing well, ACE closed 2010 leading the Affinities and Professional Indemnity segments, third place in Marine, D&O and Energy. In addition to the above, ACE moved up several positions in Engineering Risks and General Liability, closing the year ranking sixth place in those business lines. ACE Brazil also launched several new products, and also strengthened its structure as an insurance and re-insurance company.

Geographical expansion has also been on the agenda, developing a long-term strategic plan which resulted in the opening of the Londrina (PR), Florianópolis (SC) and Santos (SP) branches. In order to sustain the underwriting culture and quality in clients service, the company recruited 116 new employees in 2010 who have been trained in each area of the company.

Looking back at the company’s launch in 1999, when ACE acquired Cigna’s P&C Business globally, we see a company that has grown organically more than ten times since then. Putting this into perspective, over the same period the Brazilian Insurance Market averaged 15 percent annual growth, driven mainly by the auto and health segments which represent roughly 80 percent of the market and where ACE does not participate. For 2011, the company plans to continue on its success.

ACE Brazil has displayed healthy growth in the past few years. What’s behind the company’s success?

ACE Brazil success results from the commitment of ACE Limited to Brazil, a clear and well-thought-out long-term profitable growth strategy, relentless discipline in execution, and having the best professionals, motivated and delivering high quality service to our clients and partners.

The market is awash with insurance companies of high calibre. What sets ACE Brazil apart from the rest?

The factor that differentiates ACE from its competitors is its specialisation in both product and distribution, providing the highest level of service to our clients, starting from underwriting and going through risk management, loss control, billing and claims adjustments. Besides, ACE is a worldwide company, present in more than 50 countries and 200 cities, which enables us to offer clients capacity, presence and global expertise.

ACE Brazil is investing on several fronts, unveiling growth possibilities in products that are not its traditional specialty. Which are the strongest new products you offer, and that you see future potential in?

As mentioned, ACE is a global insurer with the ability to innovate and maximise best practices across globe. Currently in Brazil we are close to launching our High Net Worth initiative, which in summary is focused in providing differentiated insurance solutions and services to a segment of the population which today is not fully served. This involves various products such as home owner packages, auto and recreational watercraft. ACE has vast experience in servicing this segment, for instance ACE Private Risk Services which is part of our US Division today services thousands of customers, having successfully grown its business year on year. It provided great expertise in order to develop our Brazilian strategy, products and services.

We are also focused on executing our Surety strategy; having already started operations and developed long-term relationships with important local and international conglomerates, providing important capacities allowing them to grow their own businesses.

These are some of our growth initiatives; as mentioned we believe in Brazil, we are committed to our customers and being an active player in both the insurance and reinsurance markets in Brazil.

Please describe the nature of ACE’s sustainability commitment programme and what it involves.

ACE has been part of a global sustainability commitment programme for over five years, and wherever the company sees opportunities to develop such initiatives, it shall be done within the company and via employee measures and partnerships.

In the social responsibility field, ACE has accomplished actions of great relevance to entities that elected needy children as their main focus. Thus, the company has made valuable contributions to institutions such as the CACAU – Centro de Apoio à Criança com Anomalia Urológica (Center of Support to Children with Urologic Anomaly), Casa Hope (for children with cancer) and Vivenda da Criança, which performs comprehensive social work in the suburbs of São Paulo.

On the cultural front, ACE sponsored a priceless art book that observed good taste and high level in all phases of production, from image capture to printing process. The work, by Paulo Pereira, the company’s vice-president of Affinity, shows details of 120 wild birds from Brazil, photographed precisely and with skill in various locations of the country.

The sustainability programme has given way to amateur sports in 2010, considering that the country is getting ready to host the 2016 Olympic Games. During the year, the company sponsored the young tennis player, Caio Martins. He is 16 years old and has had important achievements, when he went from fifth to leading position of his category, according to ranking by the Tennis Federation of São Paulo.

ACE is also involved in activities to support the environment. Please describe the most important projects within this area.

ACE runs a global environmental programme named “ACE Green,” which involves all environmental activities that ACE operates around the world. ACE Limited – Global is one such activity, involving a global day of service, i.e. a day during which our employees around the world can do something for the community and environment. All initiatives were chosen locally in the countries that ACE operates business within. More than 50 countries have joined.

Please describe any sustainable achievements and initiatives in relation to ACE Brazil.

ACE Brazil was recognised by FGV (Fundação Getúlio Vargas) in its annual Green Rankings of Insurer Groups in 2010, and the company has also launched the first Environmental Insurance on the Brazilian market by utilising its industry, using its global expertise. After having achieved this goal, ACE set a good example and many other insurance companies followed suit, using ACE’s model as guideline. For example, the initiative Global Day of Service involved the revitalisation of Aclimação Park and a children’s day in Vivenda da Criança was organised. Both initiatives were conceived and carried out by ACE Brazil employees.

You extended your online presence and services in 2010. Will you develop this business method further, and if so, how?

ACE will continue to evolve, striving to stay at the forefront of the developments of the industry. New clients, as well as current ones, constantly demand new ways of doing business, and the company must follow and adapt to its clients’ specific needs while simultaneously keeping its eyes on new X and Y generations, which are indeed our future consumers and leaders.

Different forms of sponsorship feature increasingly within ACE Brazil’s curriculum. Is this a longstanding commitment, and how will it progress? Also, on what grounds do you select the charities you support?

Indeed, our charity programmes are longstanding commitments. ACE Limited operates a Foundation that assists less fortunate individuals and communities. In particular, the company strives to achieve and sustain productive and healthy lives of people in geographic areas where ACE employees live and work. The ACE Foundations aim to accomplish this by focusing the majority of their funds on clearly defined projects that have measurable objectives and outcomes and will help to solve problems in specific areas of education, the environment, poverty and health. In 2010, the ACE Foundations collectively distributed $6.6m including foundation grants to over 80 organisations globally and matching gifts as directed by employees. Since ACE was established in Brazil, in 1999, our team started helping Vivenda da Criança. The foundation is located in the poorest part of São Paulo and provides activities and supplies food for underprivileged families and children. Also, we contributed to the construction of a new building for Casa Hope, a foundation that helps children with cancer. This new building provides treatment for more than 2,000 children. Moreover, ACE Brazil often launches new initiatives and is always open to its employee’s suggestions.

Having built a strong foundation, what measures will you take to ensure the next decade will be as successful as the last one?

We will continue focusing on strengthening our balance sheet though customer-centric strategies, underwriting discipline and developing our human talent. Innovation and execution make the difference and that exactly what we will be focusing in order to sustain our current success.

ACE Group profile

ACE Brazil is part of the ACE Group, a global insurance and reinsurance company operating in 53 countries, whose Switzerland-based parent, ACE Limited (NYSE:ACE), is a component of the S&P 500 stock index. The company is a leading provider of property and casualty, accident and health and life insurance, as well as reinsurance. In 2004 Evan G. Greenberg stepped in as President and CEO of ACE Ltd and became Chairman in 2007, while Farid Eid Filho serves as ACE Brazil’s President.

For more information www.acegroup.com