UPDATE 2-Ace first-quarter net boosted by policy sales

* Ace posts higher first-quarter net

* Operating EPS of $1.99/share beats Wall St view

* Shares unchanged in post-market trading (Adds analyst comment, CEO comment)

NEW YORK, April 28 (Reuters) - Insurer Ace Limited (ACE.N), said on Tuesday net income rose 50 percent in the first quarter, helped by growth in policy sales.

Ace, which provides insurance as well as reinsurance to other property and casualty carriers, reported earnings of $567 million, or $1.69 a share, compared with $377 million, or $1.10 a share, in the year earlier quarter.

Operating earnings, used by analysts to measure performance because it excludes investments, totaled $669 million, or $1.99 a share, beating analysts' average expectations of $1.97 a share, according to Reuters Estimates.

The Zurich-based insurer had operating earnings of $2.14 a share, in the year-ago period.

Net written premiums rose 9 percent, and excluding the impact of foreign exchange would have been 15 percent higher.

Chief Executive Evan Greenberg warned that Ace is not immune to the global recession, however, and revenue growth through the rest of the year would be pressured by the economic downturn and weaker foreign exchange rates.

Ace's investment income also helped drive the quarter's strong results, rising nearly 3 percent.

"On every front it looks like they beat expectations," said Keefe, Bruyette & Woods analyst Clifford Gallant, who had expected the insurer to post lower premium volume and operating profit. Gallant holds Ace shares.

Gallant added that while Ace's premium may be buffeted by the recession, it could offset that by picking up business from weakened competitors, such as American International Group (AIG.N), XL Capital (XL.N) and Swiss Re (RUKN.VX).

Ace shares closed up 21 cents, or 0.47 percent, in the main session on Tuesday at $45.15, and were unchanged in in post-market trading.

Ace shares have fallen about 24 percent over the last 12 months, while the Standard & Poor's insurance index .GSPINSC has dropped more than 60 percent in the same period. (Reporting by Lilla Zuill; Editing by Steve Orlofsky)