ACE asbestos loss reserves increase

NEW YORK --Bermuda-based reinsurer ACE Ltd. said Friday its gross loss reserve for asbestos claims has increased by about $200 million, but said an internal review found its net reserves are "adequate" and don't require any changes.

In addition, Ace said an external review estimated gross and net asbestos liabilities below what a similar study estimated two years ago. As a result, the difference in net loss reserves between the internal and external studies has narrowed to about $100 million from $180 million two years ago.

ACE said its best estimate falls within that range.

The company conducts an annual internal review of Brandywine loss reserves that includes an evaluation of direct asbestos and environmental exposures. In addition, a biennial review is conducted by an independent actuarial consulting firm, as required by the Pennsylvania Insurance Department, as a condition of the 1996 Brandywine restructuring order.

Shares closed down 12 cents at $60.72 on the New York Stock Exchange.