ACE Limited Reports First Quarter Results.

Business Editors

HAMILTON, Bermuda--(BUSINESS WIRE)--April 29, 2003

ACE Limited (NYSE:ACE) today reported the results of operations for the quarter ended March 31, 2003. Highlights for the quarter are as follows:

-- Net income (including realized losses) for the quarter

$247 million compared with net income of $198 million for the

comparable period a year ago.

-- Net income per share was $0.90 for the period compared with

$0.70 for the same quarter last year, a gain of 29%.

-- Net operating income was $279 million compared with $216

million for the same quarter in 2002(1).

-- Net operating income per share was $1.02 for the current

quarter compared with $0.77 for the same quarter last year, a

gain of 32%.(1)

-- Net realized losses, net of tax, were $32 million, compared

with net realized losses of $18 million for the same quarter

in 2002. Unrealized gains totaled $79 million compared with

$84 million for the same period in 2002.

-- Diluted book value per share at March 31, 2003 was $25.14

compared with $24.16 at December 31, 2002, and $23.78 at March

31, 2002.(2)

-- Net premiums written increased 48 percent over the same

quarter a year ago, while net premiums earned increased 52%

quarter on quarter.

-- Operating cash flow was $600 million during the quarter

compared to $144 million in the comparable quarter of 2002.

-- Net investment income rose 3% to $206 million for the quarter

compared with $200 million in the prior year's quarter.

-- The combined ratio was 90.6% for the quarter compared to 93.1%

for the first quarter 2002.

Brian Duperreault, Chairman and Chief Executive Officer of ACE Limited, commented: "This was a good quarter for us by any standard of measurement. We were able to demonstrate the earning power we have been building over the last three years. We benefited from growth in earned premiums, improved underwriting margins and strong positive cash flow. However, low investment yields limited our growth in investment income to 3%, which continues to lag the growth in underwriting income. Our annualized ROE from operations was 16.7%.(3) In summary, an excellent start for the current fiscal year."

Please refer to the ACE Financial Supplement, which is posted on the Company's website, for more detailed information on individual segment performance, together with additional disclosure on reinsurance recoverable, loss reserves, financial guaranty portfolio, investment portfolio and capital structure. ACE's website reference (url) is http://media.corporate-ir.net/media_files/nys/ace/reports/ fin_supp_march_31_2003.xls.

Note: Due to the length of the above URL, it may be necessary to copy and paste this hyperlink into your Internet browser's URL address field.

ACE Limited (NYSE:ACE) will host a live webcast of its first quarter earnings conference call on Wednesday, April 30, 2003, beginning at 8:30 a.m. EST. The public may access both the webcast, available on a listen-only basis, and the financial supplement at http://www.acelimited.com. Please refer to our website under "Investor Information, Calendar of Events", one half hour before, for further webcast 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, April 30, 2003 until Wednesday, May 14, 2003 at 5:00 p.m. EDT.

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: http://www.acelimited.com.

(1)Net operating income (loss) is a common performance measurement and is defined as net income (loss) excluding net realized gains (losses) on investments and the tax effect of net realized gains (losses) on investments. We believe this presentation of net operating income (loss) enhances the understanding of our results of operations by highlighting the underlying profitability of our insurance business. We exclude net realized gains (losses) on investments from net operating income (loss) because the amount of these gains (losses) is heavily influenced by, and fluctuates in part, according to the availability of market opportunities. Net operating income (loss) should not be viewed as a substitute for net income determined in accordance with generally accepted accounting principles (GAAP). (2)Annualized operating return on equity is calculated using net operating income (loss) less mezzanine equity dividend divided by average shareholders' equity for the period. (3)Diluted book value per share is shareholder's equity and net proceeds from assumed conversions of outstanding in-the-money options divided by the sum of shares outstanding and the number of options assumed issued.

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 Company's forward-looking statements could be affected by competition, pricing and policy term trends, the levels of new and renewal business achieved, market acceptance, changes in demand, the frequency of unpredictable catastrophic events, actual loss experience, uncertainties in the reserving or settlement process, the impact of aggregate policy coverage limits, the impact of bankruptcies of various asbestos producers and related business, new theories of liability, judicial and legislative developments, litigation tactics, the amount and timing of reinsurance recoverable, actual market developments, rating agency action, possible terrorism or the outbreak and effects of war and economic, political, regulatory, 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. 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 Limited
                 Summary Consolidated Balance Sheets
                    (in millions of U.S. dollars)

                                                March 31   December 31
                                                  2003         2002
                                              ------------ -----------
                                              (Unaudited)
Assets
Total investments and cash                        $19,218     $18,324
Reinsurance recoverable                            14,132      13,991
Insurance and reinsurance balances receivable       3,228       2,654
Other assets                                        8,878       8,482
                                              -----------   ----------
   Total assets                                   $45,456     $43,451
                                              ===========   ==========

Liabilities
Unpaid losses and loss expenses                   $24,636     $24,315
Unearned premiums                                   6,573       5,586
Other liabilities                                   7,234       6,850
                                              -----------   ----------
   Total liabilities                              $38,443     $36,751
                                              -----------   ----------

Commitments and contingencies

Mezzanine equity                                     $311        $311
                                             ------------   ----------

Shareholders' equity
   Total shareholders' equity                      $6,702      $6,389
                                             ------------   ----------
   Total liabilities, mezzanine equity and
    shareholders' equity                          $45,456     $43,451
                                             ============   ==========

Diluted book value per share                       $25.14      $24.16



                             ACE Limited
                 Summary Consolidated Financial Data
   (in millions of U.S. dollars, except share, per share data, and
                                ratios)
                             (Unaudited)

                                                Three Months Ended
                                                     March 31
                                            --------------------------
                                                 2003         2002
                                             ------------ ------------

Gross premiums written                            $4,113       $3,118
Net premiums written                               2,930        1,986
Net premiums earned                                2,072        1,360

Losses and loss expenses                           1,283          853
Life and annuity benefits                             48           23
Policy acquisition costs                             296          198
Administrative expenses                              260          197
                                             ------------ ------------
Underwriting income                                  185           89

Net investment income                                206          200
Other income (expense)                                (6)           5
Interest expense                                      45           46
Income tax expense                                    61           32
                                             ------------ ------------
Net operating income(a)                             $279         $216
Net realized losses                                  (40)         (26)
Tax effect of net realized losses                      8            8
                                             ------------ ------------
Net income                                          $247         $198
                                             ============ ============

Diluted earnings per share:
Net operating income                               $1.02        $0.77
Net income                                         $0.90        $0.70

Weighted average diluted shares outstanding  268,040,665  271,527,253

Loss and loss expense ratio                         63.4%        64.1%
Policy acquisition cost ratio                       14.4%        14.3%
Administrative expense ratio                        12.8%        14.7%
Combined ratio                                      90.6%        93.1%


(a) Net operating income comprises income excluding net realized
gains (losses) net of tax.

    Ratios exclude life reinsurance business



                             ACE Limited
            Consolidated Supplemental Segment Information
                    (in millions of U.S. dollars)
                             (Unaudited)

                                                 Three Months Ended
                                                      March 31
                                              ------------------------
                                                  2003         2002
                                               ----------   ----------

Gross Premiums Written
----------------------

Insurance - North American                        $1,664       $1,265
Insurance - Overseas General                       1,406          962
Global Reinsurance(a)                                511          403
Financial Services                                   532          488
                                               ----------   ----------
Total                                             $4,113       $3,118
                                               ----------   ----------


Net Premiums Written
--------------------

Insurance - North American                          $933         $513
Insurance - Overseas General                         981          614
Global Reinsurance(a)                                490          383
Financial Services                                   526          476
                                               ----------   ----------
Total                                             $2,930       $1,986
                                               ----------   ----------


Net Premiums Earned
-------------------

Insurance - North American                          $753         $473
Insurance - Overseas General                         814          509
Global Reinsurance(a)                                296          144
Financial Services                                   209          234
                                               ----------   ----------
Total                                             $2,072       $1,360
                                               ----------   ----------


Net Operating Income (Loss)
---------------------------

Insurance - North American                          $120          $94
Insurance - Overseas General                          65           34
Global Reinsurance(a)                                 89           80
Financial Services                                    59           47
Corporate & Other                                    (54)         (39)
                                               ----------   ----------
Total                                               $279         $216
                                               ----------   ----------

(a) Includes both property and casualty reinsurance and life
reinsurance