[0] A.M. Best Affirms Rating of ACE European Markets Insurance.

Business Editors

OLDWICK, N.J.--(BUSINESS WIRE)--Dec. 12, 2001

A.M. Best Co. has affirmed the A+ (Superior) financial strength rating of ACE European Markets Insurance Limited (AEMI). The rating reflects A.M. Best's view of AEMI as a core subsidiary of its ultimate parent, ACE

AEMI's parent provides it with a quota share reinsurance agreement, efficient management and a strengthened capital base and business position. The company satisfies A.M. Best's requirements for reinsurance affiliation, and therefore assumes the current group rating of A+ (Superior).

Parental reinsurance support--The quota share reinsurance agreement between AEMI and ACE Bermuda came into effect 1 September 1997, and was revised 1 January 2001. Under the agreement, AEMI cedes between 85% and 90% of all gross premiums underwritten, although the 90% limit may be exceeded by mutual agreement. A separate stop loss agreement provides the company with protection against accumulation of losses within its retention.

Efficient management--In addition to financial support, AEMI also benefits from management and technical resources available within the ACE group. The company's investment management is coordinated with the investments of the ACE group.

Strengthened capital base--The company benefits from a USD 47 million LOC facility provided by ACE Bermuda, taking the total capital resources available to AEMI to USD 101 million. A.M. Best believes that this will be adequate to support projected premium growth between 2001 and 2003.

Strengthened business position--The company is in the process of strengthening its finite insurance market position and continues to build its traditional insurance business through the introduction of new products. This strategy has proved successful, resulting in substantial growth in premium income.

Expectations

-- The company is likely to continue to satisfy A.M. Best's key `reinsured
rating criteria' of parental majority ownership and a minimum of 80%
retrocession of gross premium through the parent.

-- Further growth is likely to be achieved in the finite insurance market.

A.M. Best Co., established in 1899, is the world's oldest and most authoritative insurance rating and information source. For more information, visit A.M. Best's Web site at www.ambest.com.