ACE Limited Reports Fourth Quarter, Year-end Earnings

ACE Limited (NYSE: ACE) today reported income excluding net realized gains (losses) of $41.9 million for the quarter ended December 31, 2001 compared with $164.3 million for the same quarter in 2000 and earnings per share excluding net realized gains (losses), after deducting preferred dividends, of $0.14 for the current quarter compared with $0.65 last year. Net income for the quarter ended December 31, 2001 was $46.3 million compared with $113.8 million for fiscal 2000 and earnings per share, after deducting preferred dividends, was $0.15 for the current quarter compared with $0.44 for the same quarter last year. Earnings per share calculations are based on the weighted average number of shares calculated in accordance with FAS 128 on a diluted basis.

For the year ended December 31, 2001, income (loss) excluding net realized gains (losses), non-recurring expenses, and the cumulative effect of adopting a new accounting standard was $(68.9) million compared with $581.9 million last year and a loss per share, after deducting preferred dividends, of $0.40 for the year ended December 31, 2001 compared with earnings per share of $2.48 per share for 2000. Net loss for the year was $146.4 million compared with net income of $543 million for fiscal 2000 and the loss per share, after deducting preferred dividends, was $0.74 for the current year compared with earnings per share of $2.31 last year. The fully diluted book value per share of the company at December 31, 2001 was $23.59.

"In spite of the losses incurred last year, we ended 2001 in a stronger financial position than we began," said Brian Duperreault, Chairman and Chief Executive Officer of ACE Limited. "Our surplus was at its highest levels ever, providing us with the capital resources we need to meet increased customer demand."

Gross premiums written during the December 31, 2001 quarter increased by 65 percent to $2.7 billion, compared with $1.6 billion for the comparable quarter in 2000.

Net premiums written during the December 31, 2001 quarter were $1.9 billion compared with $1 billion for the same period in 2000, an increase of 83 percent. Net premiums earned during the quarter were up 62 percent to $1.8 billion from $1.1 billion for the same quarter in 2000.

Gross premiums written for fiscal 2001 were $10.2 billion compared with $7.6 billion for fiscal 2000, an increase of 34 percent.

For fiscal 2001, net premiums written increased 30 percent to $6.4 billion compared with $4.9 billion for fiscal 2000. Net premiums earned for the year ended December 31, 2001 were $5.9 billion compared with $4.5 billion for fiscal 2000, a 30 percent increase.

Net investment income, excluding net realized gains (losses), was $192 million for the fiscal 2001 fourth quarter, compared with $209 million for the same period last year. For the year ended December 31, 2001, net investment income, excluding net realized gains (losses), was $786 million compared with $771 million for fiscal 2000. During the 2001 fourth quarter, ACE had net realized gains, net of tax, of $4 million, compared with net realized losses of $50 million for the same quarter in 2000. For the year ended December 31, 2001, net realized losses, net of tax, were $50 million, compared with net realized losses of $39 million for fiscal 2000.

The ACE Group of Companies provides insurance and reinsurance for a diverse group of clients. The ACE Group conducts its business on a global basis with operating subsidiaries in nearly 50 countries. Additional information can be found at: www.acelimited.com.

ACE Limited (NYSE: ACE) will host a live webcast of its fourth quarter, year-end earnings conference call on Wednesday, February 13, 2002, beginning at 9:30 a.m. EST. The public may access the webcast, which is available on a listen-only basis, at www.acelimited.com. Please refer to our website for further log-in details. Individuals who access the webcast will be asked to identify themselves and their affiliation. A replay of the webcast will be available following the live webcast on Wednesday, February 13, 2002 until Wednesday, February 20, 2002 at 11:30 p.m. EST.

Application of the Safe Harbor of the Private Securities Litigation Reform Act of 1995:
Any forward-looking statements made in this press release reflect the Company's current views with respect to future events and financial performance and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements involve risks and uncertainties which may cause actual results to differ materially from those set forth in these statements. For example, the adequacy of capital resources could be affected by the frequency of unpredictable catastrophic events, actual loss experience, the amount and timing of reinsurance recoverables and market conditions affecting ACE's investments. Also, competition in the industry, the levels of new and renewal business achieved, market acceptance, and economic, market, legislative, regulatory, Lloyd's, insurance and reinsurance business conditions, as well as management's response to these factors, and other factors identified in the Company's filings with the Securities and Exchange Commission, could affect the forward-looking statements contained in this press release. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the dates on which they are made. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

ACE Corporate Announcements - Fourth Quarter, 2001
December 28, 2001 - Kingsley Schubert to Retire from ACE
ACE Limited announced that Kingsley Schubert, Executive Vice President, Global Life Insurance, will be retiring from his position as of January 31, 2002. Mr. Schubert will continue to assist ACE in the evaluation of the viability of a life acquisition on a consultancy basis.
December 26, 2001 - ACE Tempest Re USA and The Hartford Announce Workers' Compensation Catastrophe Product Offering Capacity up to $20m.
ACE Tempest Re USA, Inc., a wholly-owned subsidiary of ACE INA Holdings, Inc., underwriting on behalf of ACE USA, announced it has joined forces with The Hartford Financial Services Group's HartRe subsidiary to offer workers' compensation catastrophe coverage with $20 million in capacity. This initiative was created to respond to the market needs of primary insurers of workers' compensation. ACE Tempest Re USA will originate and manage business on behalf of both companies accessing the joint entities' combined surplus of $6.2 billion.
December 17, 2001 - ACE USA Appoints Four Group Presidents and Realigns Organizational Structure
ACE USA announced a new management structure including the appointment of Marshall Turner, Brian Dowd, William Curcio and John Lupica to the newly created positions of business group presidents: Marshall Turner has been appointed President of Westchester Specialty Group. In his new role he also will have responsibility for the Diversified Products division, which includes ACE USA's Agri-business and Specialty Programs; Brian Dowd has been appointed President of the Specialty P&C group. In this role, he will be responsible for Global Property, Energy, Power Products, Commercial Marine and U.S. International units; William Curcio has been appointed President of the ACE Risk Management group. Going forward, he will have responsibility for the National Accounts Casualty Business, Group Casualty, Wrap-ups and Excess Business for National Accounts; and John Lupica has been appointed President of the Professional Risk group. In his new role, he will have senior management responsibility for the Management Liability, Professional Liability, Programs, Surety, and Aerospace units.
December 5, 2001 - ACE USA Power Products Introduces PowerBacker LTO - Long-Term Outage Insurance Coverage for Electric Utilities
ACE USA Power Products announced the latest addition to its family of coverages for electric utilities - PowerBacker LTO - designed exclusively for protection against long-term outages. This product meets the utility industry's demand for a specialist solution to earnings shocks that can result from long-term generation outages.
November 27, 2001 - ACE USA Appoints Edward G. Troy President, ESIS Inc.
ACE USA announced the appointment of Edward G. Troy to President of ESIS, Inc. Based in Philadelphia, Troy has responsibility for managing the continued profitable growth and strategic direction of ESIS, Inc., the risk management services arm of ACE USA.
November 26, 2001 - Sovereign Launches Innovative New Product to Protect Against Maxi-Devaluation Risk - Real Exchange Rate Liquidity (REX) product marks significant expansion of political risk insurance coverage for project finance transactions
ACE's political risk joint venture, Sovereign Risk Insurance Ltd., announced the launch of the Real Exchange Rate Liquidity (REX) product, an innovative new political risk insurance product designed to partially mitigate the risks that large currency devaluations will impair an infrastructure project's ability to make debt service payments.
November 1, 2001 - INAMAR Recreational Marine Expands Coverage and Value in Boatsman National Small Boat Program
INAMAR Recreational Marine, the recreational marine insurance products and services arm of ACE INA, announced the introduction of its enhanced Boatsman Program for boats up to 27 feet in length. The program is offered to owners of both power and sail pleasure craft, as well as select charter vessels.
October 31, 2001 - ACE INA purchases YouDecide.com from ProAct Technologies - Internet Portal Provides Financial Services to More than 4 Million Customers
ACE INA Holdings, Inc. announced the acquisition of YouDecide.com, Inc. from ProAct Technologies Corp., a leading provider of applications for managing employee benefits programs. YouDecide.com offers a voluntary benefits platform that provides customers' employees a broad choice of financial products and services including insurance, finance and investment products.
October 25, 2001 - ACE & PMI Announce Joint Marketing Agreement
The PMI Group, Inc. and ACE Limited announced the signing of a Joint Marketing Agreement to jointly develop opportunities in the mortgage credit enhancement market and other consumer-based business markets in continental Europe. Under the joint marketing relationship, ACE and PMI may offer products and services through jointly branded marketing throughout continental Europe.
October 19, 2001 - ACE USA Special Risk Facilities Names James W. Macdonald Senior Vice President and Chief Underwriting Officer
ACE USA announced the appointment of James W. Macdonald to Senior Vice President and Chief Underwriting Officer, Special Risk Facilities (SRF). Based in Philadelphia, Macdonald has responsibility for the profitable growth of the SRF underwriting business unit, including all aspects of pricing and risk selection.
October 1, 2001 - ACE Hires Julian Edwards and Neil Galletti to head up Credit and Political Risks Division
ACE Global Markets and ACE Europe are pleased to announce the appointments of Julian Edwards and Neil Galletti to head up an operational Credit and Political Risks Division. Mr. Edwards and Mr. Galletti will be responsible for the overall management of ACE Global Markets and ACE Europe's Credit and Political Risks operations at a regional level as well as having a group wide supervisory remit on a global basis for these classes of business.

ACE Limited announced that Kingsley Schubert, Executive Vice President, Global Life Insurance, will be retiring from his position as of January 31, 2002. Mr. Schubert will continue to assist ACE in the evaluation of the viability of a life acquisition on a consultancy basis. ACE Tempest Re USA, Inc., a wholly-owned subsidiary of ACE INA Holdings, Inc., underwriting on behalf of ACE USA, announced it has joined forces with The Hartford Financial Services Group's HartRe subsidiary to offer workers' compensation catastrophe coverage with $20 million in capacity. This initiative was created to respond to the market needs of primary insurers of workers' compensation. ACE Tempest Re USA will originate and manage business on behalf of both companies accessing the joint entities' combined surplus of $6.2 billion. ACE USA announced a new management structure including the appointment of Marshall Turner, Brian Dowd, William Curcio and John Lupica to the newly created positions of business group presidents: Marshall Turner has been appointed President of Westchester Specialty Group. In his new role he also will have responsibility for the Diversified Products division, which includes ACE USA's Agri-business and Specialty Programs; Brian Dowd has been appointed President of the Specialty P&C group. In this role, he will be responsible for Global Property, Energy, Power Products, Commercial Marine and U.S. International units; William Curcio has been appointed President of the ACE Risk Management group. Going forward, he will have responsibility for the National Accounts Casualty Business, Group Casualty, Wrap-ups and Excess Business for National Accounts; and John Lupica has been appointed President of the Professional Risk group. In his new role, he will have senior management responsibility for the Management Liability, Professional Liability, Programs, Surety, and Aerospace units. ACE USA Power Products announced the latest addition to its family of coverages for electric utilities - PowerBacker LTO - designed exclusively for protection against long-term outages. This product meets the utility industry's demand for a specialist solution to earnings shocks that can result from long-term generation outages. ACE USA announced the appointment of Edward G. Troy to President of ESIS, Inc. Based in Philadelphia, Troy has responsibility for managing the continued profitable growth and strategic direction of ESIS, Inc., the risk management services arm of ACE USA. ACE's political risk joint venture, Sovereign Risk Insurance Ltd., announced the launch of the Real Exchange Rate Liquidity (REX) product, an innovative new political risk insurance product designed to partially mitigate the risks that large currency devaluations will impair an infrastructure project's ability to make debt service payments. INAMAR Recreational Marine, the recreational marine insurance products and services arm of ACE INA, announced the introduction of its enhanced Boatsman Program for boats up to 27 feet in length. The program is offered to owners of both power and sail pleasure craft, as well as select charter vessels. ACE INA Holdings, Inc. announced the acquisition of YouDecide.com, Inc. from ProAct Technologies Corp., a leading provider of applications for managing employee benefits programs. YouDecide.com offers a voluntary benefits platform that provides customers' employees a broad choice of financial products and services including insurance, finance and investment products. The PMI Group, Inc. and ACE Limited announced the signing of a Joint Marketing Agreement to jointly develop opportunities in the mortgage credit enhancement market and other consumer-based business markets in continental Europe. Under the joint marketing relationship, ACE and PMI may offer products and services through jointly branded marketing throughout continental Europe. ACE USA announced the appointment of James W. Macdonald to Senior Vice President and Chief Underwriting Officer, Special Risk Facilities (SRF). Based in Philadelphia, Macdonald has responsibility for the profitable growth of the SRF underwriting business unit, including all aspects of pricing and risk selection. ACE Global Markets and ACE Europe are pleased to announce the appointments of Julian Edwards and Neil Galletti to head up an operational Credit and Political Risks Division. Mr. Edwards and Mr. Galletti will be responsible for the overall management of ACE Global Markets and ACE Europe's Credit and Political Risks operations at a regional level as well as having a group wide supervisory remit on a global basis for these classes of business.

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