HAMILTON, Bermuda - May 28, 2002 - ACE Limited (NYSE: ACE) announced today that the ACE Group has entered into a strategic business partnership with Huatai Insurance Company of China. Both companies will join forces to assume a leadership role in China's rapidly growing property/casualty market. The partnership will allow both companies to develop jointly new products and services for delivery nationally in China, and establish a framework for expansion into other key financial services areas. Huatai is China's first nationally licensed joint stock property/casualty insurer and the fourth largest provider of property/casualty products and services in China.
Under the terms of the agreement, ACE will acquire 22% of Huatai's outstanding shares for total consideration of approximately $150 million. Under Chinese regulations, the ACE Group's investment will be made by three subsidiary companies: ACE INA, ACE Tempest Re and ACE US Holdings.
As part of the strategic partnership, three ACE nominees have been elected to Huatai's Board of Directors,including ACE Limited Chairman and Chief Executive Officer Brian Duperreault, ACE INA Chairman Dominic Frederico, and ACE INA Executive Vice President Peter O'Connor. ACE also will provide Huatai additional Chinese-speaking personnel to directly assist with senior level actuarial, financial, underwriting, and information technology development. In addition to serving on the Board of Directors, Mr. O'Connor will become a full-time senior advisor to Huatai based in Beijing. Mr. O'Connor has 39 years of international insurance experience and will report to ACE Limited Vice Chairman Evan Greenberg, who is head of ACE's international operations.