Greenberg calls U.S. prettiest house in shabby neighborhood

(Bloomberg) — Ace Ltd. Chief Executive Officer Evan Greenberg, whose insurer posted a decline in fourth-quarter profit as currency fluctuations pressured results, predicted that recent gains in the dollar will be temporary.

“The U.S. right now is the preferred destination for many investors seeking safety,” Greenberg said in a conference call Wednesday. “We’re the prettiest house in a pretty shabby neighborhood. Over time, I imagine the dollar’s strength against many currencies will go the other way.”

Greenberg has for years targeted acquisitions in Latin America and Asia, and lamented in 2012 that regulators in the U.S. and Europe were stymieing growth with what he called an “assault.” The expansion helped fuel annual gains of at least 10 percent in Ace’s stock for five straight years through 2010.

Shareholders “will, over any reasonable period of time, continue to benefit from our global presence and diversification and our ability to take advantage of opportunity all over the world,” Greenberg said.

Ace dropped $2 to $109.30 at 4:15 p.m. in New York trading, extending its decline for 2015 to 4.9 percent.

The U.S. Dollar Index rose to the highest since September 2003 this week. The gain can limit revenue in other countries for Ace, which operates in more than 50 nations.

Fourth-quarter net income fell 44 percent to $555 million as the company had an investment loss tied tovariable-annuity reinsurance, Zurich-based Ace said late Tuesday. Operating profit, which excludes some investment results, was $2.47 a share, beating the $2.32 average of 23 analysts surveyed by Bloomberg. Full-year operating income increased 4.7 percent to $9.79 a share.

‘Investor Flight’