UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 8-K

Current Report
Pursuant To Section 13 or 15 (d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) – April 29, 2014

ACE LIMITED
(Exact name of registrant as specified in its charter)

 
					
Switzerland	 	1-11778	 	98-0091805	
(State or other jurisdiction
of Incorporation)	 	(Commission
File Number)	 	(I.R.S. Employer
Identification No.)	
Baerengasse 32
CH-8001 Zurich, Switzerland
Telephone: +41 (0)43 456 76 00
(Address of principal executive offices)
Not applicable
(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions ( see General Instruction A.2. below):
 
 	¨	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)	
 
 	¨	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)	
 
 	¨	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-(b))	
 
 	¨	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))	

 

Item 2.02. Results of Operations and Financial Condition
On April 29, 2014, ACE Limited issued a Press Release reporting its first quarter 2014 results and the availability of its first quarter 2014 Financial Supplement. The Press Release and the Financial Supplement are attached hereto as Exhibit 99.1 and Exhibit 99.2, respectively, and are hereby incorporated herein by reference.
Item 9.01. Financial Statements, Pro Forma Financial Information and Exhibits
(d) Exhibits

Exhibit
Number	  	Description	
		
99.1	  	Press Release, Dated April 29, 2014, Reporting First Quarter 2014 Results	
		
99.2	  	First Quarter 2014 Financial Supplement	

SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

ACE LIMITED	
		
By:	 	/s/ Philip V. Bancroft	
	 	Philip V. Bancroft	
	 	Chief Financial Officer	
DATE: April 29, 2014

EXHIBIT INDEX

Number	  	Description	  	Method of Filing	 	
			
99.1	  	Press Release, Dated April 29, 2014, Reporting First Quarter 2014 Results	  	 	Furnished herewith	  	
			
99.2	  	First Quarter 2014 Financial Supplement	  	 	Furnished herewith	  	

Exhibit 99.1

	 		 	ACE Limited
Bärengasse 32
CH-8001 Zurich
Switzerland	 	+41 (0)43 456 76 00 main
+41 (0)43 456 76 01 fax
www.acegroup.com	  		

	  	Investor Contact:  	  	Helen M. Wilson	  		
	  		  	(441) 299-9283	  		
	  		  	helen.wilson@acegroup.com	  		
				
	  	Media Contact:	  	Arnella J. Forde	  		
	  		  	(212) 703-7066	  		
	  		  	arnella.forde@acegroup.com	  		
ACE REPORTS FIRST QUARTER OPERATING INCOME UP 4% TO $777 MILLION,
P&C NET PREMIUMS WRITTEN UP 12%, OR 14% IN CONSTANT DOLLARS, WITH P&C
COMBINED RATIO OF 88.8%; OPERATING RETURN ON EQUITY IS 11.2%
 
 	•	 	P&C underwriting income up 7%, driven by strong current accident year underwriting income excluding catastrophe losses, which was up 17%	
 	•	 	Net investment income of $553 million, up 4%	
 	•	 	Operating cash flow of $1.25 billion	
 	•	 	Book value per share up 2.4% and tangible book value per share up 3.0%	
ZURICH — April 29, 2014 — ACE Limited (NYSE: ACE) today reported net income for the quarter ended March 31, 2014, of $2.14 per share, compared with $2.77 per share for the same quarter last year. (1) Operating income was $2.27 per share, compared with $2.17 per share for the same quarter last year. Book value and tangible book value per share increased 2.4% and 3.0%, respectively, from December 31, 2013. Book value and tangible book value per share now stand at $86.90 and $70.97, respectively. Operating return on equity for the quarter was 11.2%. The property and casualty (P&C) combined ratio for the quarter was 88.8%.
First Quarter Summary
(in millions, except per share amounts)
(Unaudited)

 	  	 	 	 	 	 	  	 	 	 	(Per Share - Diluted)	 	
 	  	2014	 	 	2013	 	  	Change	 	 	2014	 	 	2013	 	  	Change	 	
Operating income, net of tax	  	$	777	  	 	$	746	  	  	 	4.2	% 	 	$	2.27	  	 	$	2.17	  	  	 	4.6	% 	
Adjusted net realized gains (losses), net of tax	  	 	(43	) 	 	 	207	  	  	 	NM	  	 	 	(0.13	) 	 	 	0.60	  	  	 	NM	  	
	  	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	  	 	 	 	
Net income	  	$	734	  	 	$	953	  	  	 	(23.0	)% 	 	$	2.14	  	 	$	2.77	  	  	 	(22.7	)% 	

Evan G. Greenberg, Chairman and Chief Executive Officer of ACE Limited, commented: “ACE had an excellent first quarter and a very good start to the year. After-tax operating income of $777 million was driven by both strong underwriting and investment income results, which generated an operating ROE of 11.2%. Per share book and tangible book value grew 2.4% and 3%, respectively.
“Underwriting results were particularly strong in the quarter, with underwriting income up 7% and a P&C combined ratio of 88.8%. Underwriting income benefited from excellent current accident year underwriting income growth before catastrophe losses of 17% as a result of double-digit growth in earned premium and improved margin.
“Premium revenue growth across the company was exceptionally strong, with total P&C net premiums up 12%, or nearly 14% in constant dollars. In North America, our P&C business grew 11% in the quarter and continued to achieve positive rate increases with overall pricing up in casualty-related lines and down in property-related. Internationally, where our P&C business grew more than 12% in constant dollars, pricing was generally flat. Commercial P&C market conditions globally are stable but growing more competitive. This is not a surprise - we are a disciplined organization and prepared. Given our excellent diversification by product, geography and distribution, many areas of our business have attractive growth prospects, and as a result we are confident in our ability to outperform.”
Operating highlights for the quarter ended March 31, 2014, were as follows:

(in millions of U.S. dollars except for percentages)	  	1Q
    2014    	 	 	1Q
    2013    	 	 	    Change    	 	
P&C	  				 				 				
Net premiums written	  	$	3,691	  	 	$	3,296	  	 	 	12.0	% 	
Net premiums written constant-dollar (1)	  				 	$	3,247	  	 	 	13.7	% 	
Underwriting income	  	$	390	  	 	$	364	  	 	 	7.0	% 	
Combined ratio	  	 	88.8	% 	 	 	88.2	% 	 				
Current accident year underwriting income excluding catastrophe losses	  	$	381	  	 	$	326	  	 	 	16.7	% 	
Current accident year combined ratio excluding catastrophe losses	  	 	88.9	% 	 	 	89.4	% 	 				
Global P&C (excludes Agriculture)	  				 				 				
Net premiums written	  	$	3,497	  	 	$	3,183	  	 	 	9.9	% 	
Net premiums written constant-dollar	  				 	$	3,134	  	 	 	11.6	% 	
Underwriting income	  	$	421	  	 	$	353	  	 	 	19.1	% 	
Combined ratio	  	 	87.6	% 	 	 	88.4	% 	 				
Current accident year underwriting income excluding catastrophe losses	  	$	373	  	 	$	318	  	 	 	17.1	% 	
Current accident year combined ratio excluding catastrophe losses	  	 	89.0	% 	 	 	89.5	% 	 				
Agriculture	  				 				 				
Net premiums written	  	$	194	  	 	$	113	  	 	 	72.1	% 	
Underwriting income (loss)	  	$	(31	) 	 	$	11	  	 	 	NM	  	
Combined ratio	  	 	130.3	% 	 	 	79.3	% 	 				
Current accident year underwriting income excluding catastrophe losses	  	$	8	  	 	$	8	  	 	 	—  	  	
Current accident year combined ratio excluding catastrophe losses	  	 	88.9	% 	 	 	85.4	% 	 				
 
(1)  	Excluding acquisitions, P&C net premiums written increased 9.4% on a constant-dollar basis.	
 
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 	•	 	P&C current accident year underwriting income excluding catastrophe losses increased 16.7% to $381 million, driven by growth in the Insurance – North American P&C and Insurance – Overseas General segments.	
 
 	•	 	The P&C expense ratio for the quarter was 31.1%, unchanged from last year. The prior year included a net benefit of $19 million from a legal settlement, partially offset by an expense adjustment, that together reduced the expense ratio by 0.6 percentage point.	
 
 	•	 	Total pre-tax and after-tax catastrophe losses including reinstatement premiums were $53 million (1.5 percentage points of the combined ratio) and $43 million, respectively, compared with $32 million (1.0 percentage point of the combined ratio) and $28 million, respectively, last year.	
 
 	•	 	Favorable prior period development pre-tax for the quarter was $62 million (1.6 percentage points of the combined ratio), compared with $70 million (2.2 percentage points of the combined ratio) last year.	
 
 	•	 	Operating cash flow was $1.25 billion for the quarter.	
 
 	•	 	Net loss reserves decreased $105 million and the net paid-to-incurred ratio was 106% for the quarter. Excluding 2013 crop insurance loss payments in the quarter, net loss reserves increased $179 million and the net paid-to-incurred ratio was 93%.	
 
 	•	 	Net investment income for the quarter increased 4.1% to $553 million.	
 
 	•	 	Net realized and unrealized gains pre-tax totaled $462 million for the quarter, which included net realized losses of $51 million and net unrealized gains of $513 million.	
 
 	•	 	Operating return on equity was 11.2% for the quarter. Return on equity computed using net income was 10.1% for the quarter.	
 
 	•	 	Share repurchases totaled $332 million, or approximately 3.5 million shares, during the quarter. Since the inception of the November 2013 share repurchase authorization, the company has repurchased approximately 4.5 million shares for $436 million through April 28, 2014.	
 
 	•	 	Book value per share increased 2.4% to $86.90 from $84.83 at December 31, 2013.	
 
 	•	 	Tangible book value per share increased 3.0% to $70.97 from $68.93 at December 31, 2013.	
Details of financial results by business segment are available in the ACE Limited Financial Supplement. Key segment items for the quarter ended March 31, 2014, include:
 
 	•	 	Insurance – North American P&C: Net premiums written increased 10.5%. The combined ratio was 84.7% compared with 85.7%. The expense ratio was 21.5% compared with 20.1%. The 2013 expense ratio included a 2.2 point favorable impact related to a $29 million legal settlement. The current accident year combined ratio excluding catastrophe losses was 87.1% compared with 87.7%.	
 
 	•	 	Insurance – North American Agriculture: Net premiums written increased 72.1% due to premium-sharing formulas with the U.S. government related to a loss adjustment for the 2013 crop year and changes to the company’s third-party proportional reinsurance. Excluding these items, net premiums written increased $4 million, or 3.2%. The combined ratio was 130.3% compared with 79.3%. The current accident year combined ratio excluding catastrophe losses was 88.9% compared with 85.4%. Adjusted for the current quarter adverse development, the ultimate full-year 2013 combined ratio increased from 94.7% to 97.0%.	
 
 	•	 	Insurance – Overseas General: Net premiums written increased 9.3%, or 12.3% on a constant-dollar basis. The combined ratio was 90.1% compared with 90.6%. The current accident year combined ratio excluding catastrophe losses was 90.5% compared with 90.7%.	
 
 	•	 	Global Reinsurance: Net premiums written increased 10.3% for the quarter. The combined ratio was 72.9% compared with 67.3%. The current accident year combined ratio excluding catastrophe losses was 75.1% compared with 69.2%.	
 
 	•	 	Life segment: Operating income was $77 million compared with $70 million. Net premiums written and deposits collected, excluding life reinsurance, increased 3.2% on a constant-dollar basis. International life net premiums written increased 13.9% on a constant-dollar basis.	
 
Page 3/9

Please refer to the ACE Limited Financial Supplement , dated March 31, 2014, which is posted on the company’s website in the Investor Information section, and access Financial Reports for more detailed information on individual segment performance, together with additional disclosure on reinsurance recoverable, loss reserves, investment portfolio and capital structure.
ACE will hold its first quarter earnings conference call on Wednesday, April 30, 2014, beginning at 8:30 a.m. Eastern. The earnings conference call will be available via live webcast at www.acegroup.com or by dialing 888-287-5529 (within the United States) or 719-325-4814 (international), passcode 1981939. Please refer to the ACE Group website in the Investor Information section under Calendar of Events for details. A replay of the call will be available until Wednesday, May 14, 2014, and the archived webcast will be available for approximately one month. To listen to the replay, please dial 888-203-1112 (in the United States) or 719-457-0820 (international), passcode 1981939.
ACE Group is one of the world’s largest multiline property and casualty insurers. With operations in 54 countries, ACE provides commercial and personal property and casualty insurance, personal accident and supplemental health insurance, reinsurance and life insurance to a diverse group of clients. ACE Limited, the parent company of ACE Group, is listed on the New York Stock Exchange (NYSE: ACE) and is a component of the S&P 500 index. Additional information can be found at: www.acegroup.com .
 
Page 4/9

(1)	All comparisons are with the same period last year unless specifically stated.	
Regulation G—Non-GAAP Financial Measures
In presenting our results, we included and discussed certain non-GAAP measures. These non-GAAP measures, which may be defined differently by other companies, are important for an understanding of our overall results of operations and financial condition. However, they should not be viewed as a substitute for measures determined in accordance with generally accepted accounting principles (GAAP).
Adjusted net realized gains (losses), net of tax , includes net realized gains (losses) and net realized gains (losses) recorded in other income (expense) related to unconsolidated subsidiaries, and excludes realized gains and losses from fair value changes on crop derivatives. These derivatives were purchased to provide economic benefit, in a manner similar to reinsurance protection, in the event that a significant decline in commodity pricing will impact underwriting results. We view changes in the fair value of these derivatives as part of the results of our underwriting operations, and therefore realized gains and losses from these derivatives are reclassified to adjusted losses and loss expenses.
Net premiums written on a constant-dollar basis and P&C net premiums written on a constant-dollar basis are financial measures which exclude the impact of foreign exchange. We believe it is useful to evaluate the trends in net premiums written, exclusive of the effect of fluctuations in exchange rates between the U.S. dollar and the currencies in which our international business is transacted, as these exchange rates could fluctuate significantly between periods and distort the analysis of trends. The impact is determined by assuming constant foreign exchange rates between periods by translating prior period results using the same local currency exchange rates as the comparable current period. P&C net premiums written excluding acquisitions on a constant-dollar basis exclude the net premiums written of Fianzas Monterrey and ABA Seguros acquired in 2013 in order to adjust for the distortive effect of acquisitions.
Underwriting income, P&C underwriting income, and Global P&C underwriting income are calculated by subtracting losses and loss expenses, policy benefits, policy acquisition costs and administrative expenses from net premiums earned. P&C underwriting income also includes gains (losses) from fair value changes on crop derivatives. We use underwriting income and operating ratios to monitor the results of our operations without the impact of certain factors, including net investment income, other income (expense), interest and income tax expense and adjusted net realized gains (losses). Current accident year underwriting income excluding catastrophe losses is underwriting income adjusted to exclude catastrophe losses, prior period development (PPD), and gains (losses) from fair value changes on crop derivatives. We believe it is useful to exclude catastrophe losses, as they are not predictable as to timing and amount, and PPD as these unexpected loss developments on historical reserves are not indicative of our current underwriting performance. We believe the use of these measures enhances the understanding of our results of operations by highlighting the underlying profitability of our insurance business.
Operating income or income excluding adjusted net realized gains (losses), net of tax is a common performance measurement for insurance companies. We believe this presentation enhances the understanding of our results of operations by highlighting the underlying profitability of our insurance business. We exclude adjusted net realized gains (losses) and net realized gains (losses) included in other income (expense) related to partially-owned entities because the amount of these gains (losses) is heavily influenced by the availability of market opportunities.
P&C combined ratio excluding catastrophe losses and PPD or current accident year P&C combined ratio excluding catastrophe losses exclude impacts of catastrophe losses and PPD. We believe this measure provides a better evaluation of our core underwriting performance and enhances the understanding of the trends in our property and casualty business that may be obscured by these items.
Global P&C performance metrics comprise consolidated operating results (including corporate) and exclude the operating results of the company’s Life and Insurance – North American Agriculture segments. We believe that these measures are useful and meaningful to investors as they are used by management to assess the company’s global P&C operations which are the most economically similar. We exclude the Insurance – North American Agriculture and Life segments because the results of these businesses do not always correlate with the results of our global P&C operations.
Life net premiums written and deposits collected, excluding life reinsurance , is adjusted to include deposits collected on universal life and investment contracts (life deposits) and exclude results from our life reinsurance business. Life deposits are not reflected as revenues in our consolidated statements of operations in accordance with GAAP. We include life deposits in presenting growth in our Life business because new life deposits are an important component of production and key to our efforts to grow our business. We exclude results associated with life reinsurance as there is no new life reinsurance business currently being written.
Operating return on equity (ROE) or ROE calculated using operating income is an annualized financial measure. The ROE numerator includes income adjusted to exclude adjusted net realized gains (losses), net of tax. The ROE denominator includes the average shareholders’ equity for the period adjusted to exclude unrealized gains (losses) on investments, net of tax. To annualize a quarterly rate, multiply by four. Annualized ROE calculated using operating income is a useful measure as it enhances the understanding of the return on shareholders’ equity by highlighting the underlying profitability relative to shareholders’ equity excluding the effect of unrealized gains and losses on our investments.
 
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Tangible book value per common share is shareholders’ equity less goodwill and other intangible assets divided by the shares outstanding. We believe that goodwill and other intangible assets are not indicative of our underlying insurance results or trends and make book value comparisons to less acquisitive peer companies less meaningful.
See reconciliation of Non-GAAP Financial Measures on pages 20-21 in the Financial Supplement. These measures should not be viewed as a substitute for net income, return on equity, or effective tax rate determined in accordance with GAAP.
NM - not meaningful comparison
Cautionary Statement Regarding Forward-Looking Statements :
Forward-looking statements made in this press release, such as those related to economic outlook and insurance market conditions, and company performance including 2014 performance and growth opportunities, reflect our 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 that could cause actual results to differ materially, including without limitation, the following: competition, pricing and policy term trends, the levels of new and renewal business achieved, the frequency of unpredictable catastrophic events, actual loss experience, uncertainties in the reserving or settlement process, integration activities and performance of acquired companies, new theories of liability, judicial, legislative, regulatory and other governmental developments, litigation tactics and developments, investigation developments and actual settlement terms, the amount and timing of reinsurance recoverable, credit developments among reinsurers, rating agency action, possible terrorism or the outbreak and effects of war, economic, political, regulatory, insurance and reinsurance business conditions, potential strategic opportunities including acquisitions and our ability to achieve and integrate them, as well as management’s response to these factors, and other factors identified in our 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. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
(tables to follow)
 
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ACE Limited
Summary Consolidated Balance Sheets
(in millions of U.S. dollars, except per share data)
(Unaudited)

 	  	March 31	 	  	December 31	 	
 	  	2014	 	  	2013	 	
Assets	  				  				
Investments	  	$	62,045	  	  	$	60,928	  	
Cash	  	 	847	  	  	 	579	  	
Insurance and reinsurance balances receivable	  	 	4,761	  	  	 	5,026	  	
Reinsurance recoverable on losses and loss expenses	  	 	10,755	  	  	 	11,227	  	
Other assets	  	 	16,771	  	  	 	16,750	  	
	  	 	 	 	  	 	 	 	
Total assets	  	$	95,179	  	  	$	94,510	  	
	  	 	 	 	  	 	 	 	
Liabilities	  				  				
Unpaid losses and loss expenses	  	$	36,866	  	  	$	37,443	  	
Unearned premiums	  	 	7,791	  	  	 	7,539	  	
Other liabilities	  	 	21,153	  	  	 	20,703	  	
	  	 	 	 	  	 	 	 	
Total liabilities	  	 	65,810	  	  	 	65,685	  	
	  	 	 	 	  	 	 	 	
Shareholders’ equity	  				  				
Total shareholders’ equity	  	 	29,369	  	  	 	28,825	  	
	  	 	 	 	  	 	 	 	
Total liabilities and shareholders’ equity	  	$	95,179	  	  	$	94,510	  	
	  	 	 	 	  	 	 	 	
Book value per common share	  	$	86.90	  	  	$	84.83	  	
 
Page 7/9

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	 	
 	  	2014	 	 	2013	 	
Gross premiums written	  	$	5,374	  	 	$	4,963	  	
Net premiums written	  	 	4,185	  	 	 	3,798	  	
Net premiums earned	  	 	3,970	  	 	 	3,573	  	
Losses and loss expenses	  	 	2,161	  	 	 	1,926	  	
Policy benefits	  	 	114	  	 	 	131	  	
Policy acquisition costs	  	 	728	  	 	 	614	  	
Administrative expenses	  	 	535	  	 	 	514	  	
	  	 	 	 	 	 	 	 	
Underwriting income	  	 	432	  	 	 	388	  	
Net investment income	  	 	553	  	 	 	531	  	
Net realized gains (losses)	  	 	(104	) 	 	 	206	  	
Interest expense	  	 	71	  	 	 	60	  	
Other income (expense):	  				 				
Gains (losses) from separate account assets	  	 	(6	) 	 	 	4	  	
Other	  	 	23	  	 	 	6	  	
Income tax expense	  	 	93	  	 	 	122	  	
	  	 	 	 	 	 	 	 	
Net income	  	$	734	  	 	$	953	  	
	  	 	 	 	 	 	 	 	
Diluted earnings per share:	  				 				
Operating income	  	$	2.27	  	 	$	2.17	  	
Net income	  	$	2.14	  	 	$	2.77	  	
Weighted average diluted shares outstanding	  	 	342.0	  	 	 	343.9	  	
Loss and loss expense ratio	  	 	57.7	% 	 	 	57.1	% 	
Policy acquisition cost ratio	  	 	17.7	% 	 	 	17.2	% 	
Administrative expense ratio	  	 	13.4	% 	 	 	13.9	% 	
	  	 	 	 	 	 	 	 	
Combined ratio	  	 	88.8	% 	 	 	88.2	% 	

Page 8/9

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

 	  	Three Months Ended
March 31	 	
 	  	2014	 	 	2013	 	
Gross Premiums Written	  				 				
Insurance – North American P&C	  	$	2,024	  	 	$	1,819	  	
Insurance – North American Agriculture	  	 	234	  	 	 	249	  	
Insurance – Overseas General	  	 	2,261	  	 	 	2,073	  	
Global Reinsurance	  	 	333	  	 	 	294	  	
Life	  	 	522	  	 	 	528	  	
	  	 	 	 	 	 	 	 	
Total	  	$	5,374	  	 	$	4,963	  	
	  	 	 	 	 	 	 	 	
Net Premiums Written	  				 				
Insurance – North American P&C	  	$	1,418	  	 	$	1,284	  	
Insurance – North American Agriculture	  	 	194	  	 	 	113	  	
Insurance – Overseas General	  	 	1,771	  	 	 	1,620	  	
Global Reinsurance	  	 	308	  	 	 	279	  	
Life	  	 	494	  	 	 	502	  	
	  	 	 	 	 	 	 	 	
Total	  	$	4,185	  	 	$	3,798	  	
	  	 	 	 	 	 	 	 	
Net Premiums Earned	  				 				
Insurance – North American P&C	  	$	1,487	  	 	$	1,338	  	
Insurance – North American Agriculture	  	 	103	  	 	 	52	  	
Insurance – Overseas General	  	 	1,612	  	 	 	1,459	  	
Global Reinsurance	  	 	284	  	 	 	247	  	
Life	  	 	484	  	 	 	477	  	
	  	 	 	 	 	 	 	 	
Total	  	$	3,970	  	 	$	3,573	  	
	  	 	 	 	 	 	 	 	
Operating Income (loss)	  				 				
Insurance – North American P&C	  	$	411	  	 	$	361	  	
Insurance – North American Agriculture	  	 	(25	) 	 	 	7	  	
Insurance – Overseas General	  	 	239	  	 	 	239	  	
Global Reinsurance	  	 	144	  	 	 	144	  	
Life	  	 	77	  	 	 	70	  	
Corporate	  	 	(69	) 	 	 	(75	) 	
	  	 	 	 	 	 	 	 	
Total	  	$	777	  	 	$	746	  	

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Exhibit 99.2

 
			
Investor Contact	  	This report is for informational purposes only. It should be read in conjunction with documents filed by ACE Limited with the Securities and Exchange Commission, including the most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q.	
Helen M. Wilson	  		
Phone: (441) 299-9283
email: investorrelations@acegroup.com	  		
		
	  	Cautionary Statement Regarding Forward-Looking Statements:	
		
	  	Any forward-looking statements made in this financial supplement reflect ACE’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, our forward-looking statements, such as statements concerning exposures, reserves and recoverables, could be affected by the frequency of unpredictable catastrophic events, actual loss experience, uncertainties in the reserving or settlement process, new theories of liability, judicial, legislative, regulatory and other governmental developments, litigation tactics and developments, investigation developments and actual settlement terms, the amount and timing of reinsurance receivable and credit developments among reinsurers.	
		
	  	Our forward-looking statements could also be affected by competition, pricing and policy term trends, market acceptance, changes in demand, actual market developments, rating agency action, possible terrorism or the outbreak and effects of war. 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. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.	

					
	 	ACE Limited	 		
	 	Financial Supplement Table of Contents	 		

							
 	 	 	  	Page	 	
I.	 	Financial Highlights	  				
	 	- Consolidated Financial Highlights	  	 	1	  	
			
II.	 	Consolidated Results	  				
	 	- Consolidated Results—Consecutive Quarters	  	 	2	  	
	 	- Summary Consolidated Balance Sheets	  	 	3	  	
	 	- Consolidated Premiums and Operating Income by Line of Business	  	 	4	  	
			
III.	 	Global P&C Results	  				
	 	- Global P&C Results—Consecutive Quarters	  	 	5	  	
			
IV.	 	Segment Results	  				
	 	- Insurance – North American P&C	  	 	6	  	
	 	- Insurance – North American Agriculture	  	 	7	  	
	 	- Insurance – Overseas General	  	 	8	  	
	 	- Global Reinsurance	  	 	9	  	
	 	- Life	  	 	10	  	
			
V.	 	Balance Sheet Details	  				
	 	- Loss Reserve Rollforward	  	 	11	  	
	 	- Reinsurance Recoverable Analysis	  	 	12	  	
	 	- Investment Portfolio	  	 	13 - 16	  	
	 	- Net Realized and Unrealized Gains (Losses)	  	 	17	  	
	 	- Capital Structure	  	 	18	  	
	 	- Computation of Basic and Diluted Earnings Per Share	  	 	19	  	
			
VI.	 	Other Disclosures	  				
	 	- Non-GAAP Financial Measures	  	 	20 - 21	  	
	 	- Book Value and Book Value per Common Share	  	 	22	  	
	 	- Glossary	  	 	23	  	

					
	  	ACE Limited	  		
	  	Consolidated Financial Highlights	  		
	  	(in millions of U.S. dollars, except share, per share data, and ratios)	  		
	  	(Unaudited)	  		
Note: All dollar amounts in the Financial Supplement are rounded. However, percent changes and ratios are calculated using whole dollars. Accordingly, calculations using rounded dollars may differ.

 	  	 	 	 	% Change	 	 	 	 	 	Constant $
% Change	 	
 	  	Three months ended March 31	 	 	1Q-14 vs.	 	 	Constant $	 	 	1Q-14 vs.	 	
 	  	2014	 	 	2013	 	 	1Q-13	 	 	2013 (1)	 	 	1Q-13 (1)	 	
Gross premiums written	  	$	5,374	  	 	$	4,963	  	 	 	8.3	% 	 	$	4,884	  	 	 	10.0	% 	
Net premiums written	  	$	4,185	  	 	$	3,798	  	 	 	10.2	% 	 	$	3,735	  	 	 	12.1	% 	
P&C net premiums written (2)	  	$	3,691	  	 	$	3,296	  	 	 	12.0	% 	 	$	3,247	  	 	 	13.7	% 	
Global P&C net premiums written (3)	  	$	3,497	  	 	$	3,183	  	 	 	9.9	% 	 	$	3,134	  	 	 	11.6	% 	
Net premiums earned	  	$	3,970	  	 	$	3,573	  	 	 	11.1	% 	 	$	3,501	  	 	 	13.4	% 	
Net investment income	  	$	553	  	 	$	531	  	 	 	4.1	% 	 				 				
Operating income	  	$	777	  	 	$	746	  	 	 	4.2	% 	 				 				
Net income	  	$	734	  	 	$	953	  	 	 	-23.0	% 	 				 				
Comprehensive income	  	$	1,108	  	 	$	716	  	 	 	54.7	% 	 				 				
Operating cash flow	  	$	1,250	  	 	$	913	  	 				 				 				
P&C combined ratio	  				 				 				 				 				
Loss and loss expense ratio	  	 	57.7	% 	 	 	57.1	% 	 				 				 				
Underwriting and administrative expense ratio	  	 	31.1	% 	 	 	31.1	% 	 				 				 				
	  	 	 	 	 	 	 	 	 				 				 				
Combined ratio	  	 	88.8	% 	 	 	88.2	% 	 				 				 				
Operating return on equity (ROE)	  	 	11.2	% 	 	 	11.9	% 	 				 				 				
ROE	  	 	10.1	% 	 	 	13.7	% 	 				 				 				
Operating effective tax rate	  	 	11.5	% 	 	 	10.8	% 	 				 				 				
Effective tax rate	  	 	11.3	% 	 	 	11.3	% 	 				 				 				
Diluted earnings per share	  				 				 				 				 				
Operating income	  	$	2.27	  	 	$	2.17	  	 	 	4.6	% 	 				 				
Net income	  	$	2.14	  	 	$	2.77	  	 	 	-22.7	% 	 				 				
						
 	  	 	 	 	 	 	 	 	 	 	 	 	 	% Change	 	
 	  	 	 	 	 	 	 	 	 	 	December 31	 	 	1Q-14 vs.	 	
 	  	 	 	 	 	 	 	 	 	 	2013	 	 	4Q-13	 	
Book value per common share	  	$	86.90	  	 	$	82.17	  	 	 	5.8	% 	 	$	84.83	  	 	 	2.4	% 	
Tangible book value per common share	  	$	70.97	  	 	$	67.74	  	 	 	4.8	% 	 	$	68.93	  	 	 	3.0	% 	
Tangible book value per common share excluding 2013 acquisitions (4)	  	$	72.71	  	 	$	67.74	  	 	 	7.3	% 	 				 				
Weighted average basic common shares outstanding	  	 	338.9	  	 	 	340.8	  	 				 				 				
Weighted average diluted common shares outstanding	  	 	342.0	  	 	 	343.9	  	 				 				 				
Debt plus trust preferred securities/ tangible capital	  	 	20.1	% 	 	 	20.7	% 	 				 	 	20.4	% 	 				
 
(1)	Prior periods on a constant dollar basis.	
(2)	P&C net premiums written is defined as consolidated net premiums written excluding net premiums written of the company’s Life segment. See non-GAAP financial measures.	
(3)	Global P&C net premiums written is defined as consolidated net premiums written excluding net premiums written of the company’s Life and Insurance – North American Agriculture segments. See non-GAAP financial measures.	
(4)	For 2014, tangible book value per common share excludes the impact from goodwill and intangibles relating to the acquisitions of ABA Seguros (May 2013) and Fianzas Monterrey (April 2013) of $394 million and $192 million, respectively.	

Financial Highlights	  	Page 1	

					
	  	ACE Limited	  		
	  	Consolidated Results—Consecutive Quarters	  		
	  	(in millions of U.S. dollars, except ratios)	  		
	  	(Unaudited)	  		

 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Full Year	 	
ACE Limited Consolidated	  	1Q-14	 	 	4Q-13	 	 	3Q-13	 	 	2Q-13	 	 	1Q-13	 	 	2013	 	
Consolidated Results (Including Corporate) Excluding Life Segment (1)	  				 				 				 				 				 				
Gross premiums written	  	$	4,852	  	 	$	4,936	  	 	$	5,863	  	 	$	5,518	  	 	$	4,435	  	 	$	20,752	  	
Net premiums written	  	 	3,691	  	 	 	3,712	  	 	 	4,141	  	 	 	3,904	  	 	 	3,296	  	 	 	15,053	  	
Net premiums earned	  	 	3,486	  	 	 	3,882	  	 	 	4,143	  	 	 	3,587	  	 	 	3,096	  	 	 	14,708	  	
Adjusted losses and loss expenses (2)	  	 	2,012	  	 	 	2,378	  	 	 	2,515	  	 	 	2,105	  	 	 	1,769	  	 	 	8,767	  	
Policy acquisition costs	  	 	617	  	 	 	605	  	 	 	592	  	 	 	570	  	 	 	534	  	 	 	2,301	  	
Administrative expenses	  	 	467	  	 	 	483	  	 	 	478	  	 	 	478	  	 	 	429	  	 	 	1,868	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Underwriting income	  	 	390	  	 	 	416	  	 	 	558	  	 	 	434	  	 	 	364	  	 	 	1,772	  	
Net investment income	  	 	489	  	 	 	493	  	 	 	461	  	 	 	471	  	 	 	468	  	 	 	1,893	  	
Interest expense	  	 	68	  	 	 	67	  	 	 	68	  	 	 	69	  	 	 	56	  	 	 	260	  	
Other income (expense)—operating (3)	  	 	(23	) 	 	 	(23	) 	 	 	(29	) 	 	 	(31	) 	 	 	(22	) 	 	 	(105	) 	
Income tax expense	  	 	88	  	 	 	81	  	 	 	140	  	 	 	91	  	 	 	78	  	 	 	390	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Operating income (including Corporate) excluding Life segment	  	 	700	  	 	 	738	  	 	 	782	  	 	 	714	  	 	 	676	  	 	 	2,910	  	
Life segment operating income	  	 	77	  	 	 	86	  	 	 	75	  	 	 	76	  	 	 	70	  	 	 	307	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Consolidated operating income	  	 	777	  	 	 	824	  	 	 	857	  	 	 	790	  	 	 	746	  	 	 	3,217	  	
Adjusted net realized gains (losses) (2)	  	 	(102	) 	 	 	154	  	 	 	41	  	 	 	104	  	 	 	206	  	 	 	505	  	
Net realized gains (losses) related to unconsolidated entities	  	 	51	  	 	 	25	  	 	 	22	  	 	 	12	  	 	 	33	  	 	 	92	  	
Income tax expense (benefit) on adjusted net realized gains (losses)	  	 	(8	) 	 	 	5	  	 	 	4	  	 	 	15	  	 	 	32	  	 	 	56	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Consolidated net income	  	$	734	  	 	$	998	  	 	$	916	  	 	$	891	  	 	$	953	  	 	$	3,758	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
% Change versus prior year period (1)	  				 				 				 				 				 				
Net premiums written as reported	  	 	12.0	% 	 	 	18.2	% 	 	 	-2.0	% 	 	 	7.1	% 	 	 	6.9	% 	 	 	6.8	% 	
Net premiums earned as reported	  	 	12.6	% 	 	 	15.5	% 	 	 	-1.0	% 	 	 	8.4	% 	 	 	6.4	% 	 	 	6.9	% 	
Net premiums written constant $	  	 	13.7	% 	 				 				 				 				 				
Net premiums earned constant $	  	 	14.8	% 	 				 				 				 				 				
Other ratios	  				 				 				 				 				 				
Net premiums written/gross premiums written (1)	  	 	76	% 	 	 	75	% 	 	 	71	% 	 	 	71	% 	 	 	74	% 	 	 	73	% 	
Operating effective tax rate	  	 	11.5	% 	 	 	9.2	% 	 	 	14.9	% 	 	 	11.2	% 	 	 	10.8	% 	 	 	11.6	% 	
P&C combined ratio	  				 				 				 				 				 				
Loss and loss expense ratio	  	 	57.7	% 	 	 	61.3	% 	 	 	60.7	% 	 	 	58.7	% 	 	 	57.1	% 	 	 	59.6	% 	
Policy acquisition cost ratio	  	 	17.7	% 	 	 	15.6	% 	 	 	14.3	% 	 	 	15.9	% 	 	 	17.2	% 	 	 	15.7	% 	
Administrative expense ratio	  	 	13.4	% 	 	 	12.4	% 	 	 	11.5	% 	 	 	13.3	% 	 	 	13.9	% 	 	 	12.7	% 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Combined ratio	  	 	88.8	% 	 	 	89.3	% 	 	 	86.5	% 	 	 	87.9	% 	 	 	88.2	% 	 	 	88.0	% 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Combined ratio excluding catastrophe losses and PPD	  	 	88.9	% 	 	 	91.5	% 	 	 	89.8	% 	 	 	89.2	% 	 	 	89.4	% 	 	 	90.0	% 	
P&C expense ratio	  	 	31.1	% 	 	 	28.0	% 	 	 	25.8	% 	 	 	29.2	% 	 	 	31.1	% 	 	 	28.4	% 	
P&C expense ratio excluding A&H	  	 	27.5	% 	 	 	24.0	% 	 	 	21.9	% 	 	 	25.7	% 	 	 	27.4	% 	 	 	24.5	% 	
Catastrophe reinstatement premiums (expensed) collected—pre-tax	  	$	—  	  	 	$	1	  	 	$	2	  	 	$	—  	  	 	$	—  	  	 	$	3	  	
Catastrophe losses—pre-tax	  	$	53	  	 	$	37	  	 	$	80	  	 	$	81	  	 	$	32	  	 	$	230	  	
Favorable prior period development (PPD)—pre-tax (4)	  	$	(62	) 	 	$	(122	) 	 	$	(210	) 	 	$	(128	) 	 	$	(70	) 	 	$	(530	) 	
Loss and loss expense ratio excluding catastrophe losses and PPD	  	 	57.5	% 	 	 	63.5	% 	 	 	64.1	% 	 	 	60.0	% 	 	 	58.3	% 	 	 	61.8	% 	
 
(1)	Presented excluding the Life segment. This is a non-GAAP financial measure.	
(2)	Losses from fair value changes on crop derivatives are reclassified from Adjusted net realized gains (losses) to Adjusted losses and loss expenses for this presentation. Crop derivative losses for Q1 2014 were $2 million.	
(3)	Excludes portion of net realized investment gains and losses related to unconsolidated entities.	
(4)	For Q1 2014, favorable prior period development includes $35 million of favorable net earned premium adjustments, all related to the Insurance – North American Agriculture segment.	

Consolidated Results	  	Page 2	

					
	  	ACE Limited	  		
	  	Summary Consolidated Balance Sheets	  		
	  	(in millions of U.S. dollars, except per share data)	  		
	  	(Unaudited)	  		

 	  	March 31	 	 	December 31	 	
 	  	2014	 	 	2013	 	
Assets	  				 				
Fixed maturities available for sale, at fair value	  	$	49,611	  	 	$	49,254	  	
Fixed maturities held to maturity, at amortized cost	  	 	5,887	  	 	 	6,098	  	
Equity securities, at fair value	  	 	851	  	 	 	837	  	
Short-term investments, at fair value	  	 	2,526	  	 	 	1,763	  	
Other investments	  	 	3,170	  	 	 	2,976	  	
	  	 	 	 	 	 	 	 	
Total investments	  	 	62,045	  	 	 	60,928	  	
Cash	  	 	847	  	 	 	579	  	
Securities lending collateral	  	 	1,550	  	 	 	1,632	  	
Insurance and reinsurance balances receivable	  	 	4,761	  	 	 	5,026	  	
Reinsurance recoverable on losses and loss expenses	  	 	10,755	  	 	 	11,227	  	
Deferred policy acquisition costs	  	 	2,402	  	 	 	2,313	  	
Value of business acquired	  	 	517	  	 	 	536	  	
Prepaid reinsurance premiums	  	 	1,721	  	 	 	1,675	  	
Goodwill and other intangible assets	  	 	5,382	  	 	 	5,404	  	
Deferred tax assets	  	 	516	  	 	 	616	  	
Investments in partially-owned insurance companies	  	 	466	  	 	 	470	  	
Other assets	  	 	4,217	  	 	 	4,104	  	
	  	 	 	 	 	 	 	 	
Total assets	  	$	95,179	  	 	$	94,510	  	
	  	 	 	 	 	 	 	 	
Liabilities	  				 				
Unpaid losses and loss expenses	  	$	36,866	  	 	$	37,443	  	
Unearned premiums	  	 	7,791	  	 	 	7,539	  	
Future policy benefits	  	 	4,632	  	 	 	4,615	  	
Insurance and reinsurance balances payable	  	 	3,734	  	 	 	3,628	  	
Securities lending payable	  	 	1,551	  	 	 	1,633	  	
Accounts payable, accrued expenses, and other liabilities	  	 	5,218	  	 	 	4,810	  	
Short-term debt	  	 	1,901	  	 	 	1,901	  	
Long-term debt	  	 	3,808	  	 	 	3,807	  	
Trust preferred securities	  	 	309	  	 	 	309	  	
	  	 	 	 	 	 	 	 	
Total liabilities	  	 	65,810	  	 	 	65,685	  	
Shareholders’ equity	  				 				
Total shareholders’ equity, excl. AOCI	  	 	27,843	  	 	 	27,673	  	
Accumulated other comprehensive income (AOCI)	  	 	1,526	  	 	 	1,152	  	
	  	 	 	 	 	 	 	 	
Total shareholders’ equity	  	 	29,369	  	 	 	28,825	  	
	  	 	 	 	 	 	 	 	
Total liabilities and shareholders’ equity	  	$	95,179	  	 	$	94,510	  	
	  	 	 	 	 	 	 	 	
Book value per common share	  	$	86.90	  	 	$	84.83	  	
% change over prior quarter	  	 	2.4	% 	 	 	2.2	% 	
Tangible book value per common share	  	$	70.97	  	 	$	68.93	  	
% change over prior quarter	  	 	3.0	% 	 	 	3.0	% 	

Consol Bal Sheet	  	Page 3	

					
	  	ACE Limited	  		
	  	Consolidated Premiums and Operating Income by Line of Business	  		
	  	(in millions of U.S. dollars)	  		
	  	(Unaudited)	  		
ACE Limited Consolidated

 	  	 	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	 	  	Constant $	 	
 	  	 	 	 	% of	 	 	 	 	  	% of	 	 	% Change	 	 	 	 	  	% Change	 	
 	  	 	 	 	Total	 	 	 	 	  	Total	 	 	1Q-14 vs.	 	 	Constant $	 	  	1Q-14 vs.	 	
 	  	1Q-14	 	 	Consolidated	 	 	1Q-13	 	  	Consolidated	 	 	1Q-13	 	 	1Q-13 (2)	 	  	1Q-13	 	
Net premiums written	  				 				 				  				 				 				  				
Property and all other	  	$	1,372	  	 	 	33	% 	 	$	1,222	  	  	 	32	% 	 	 	12.3	% 	 				  				
Casualty	  	 	1,455	  	 	 	35	% 	 	 	1,308	  	  	 	35	% 	 	 	11.2	% 	 				  				
	  	 	 	 	 	 	 	 	 	 	 	 	  	 	 	 	 				 				  				
Subtotal	  	 	2,827	  	 	 	68	% 	 	 	2,530	  	  	 	67	% 	 	 	11.8	% 	 	$	2,504	  	  	 	12.9	% 	
Agriculture	  	 	194	  	 	 	4	% 	 	 	113	  	  	 	3	% 	 	 	72.1	% 	 	 	113	  	  	 	72.1	% 	
Personal accident (A&H) (1)	  	 	917	  	 	 	22	% 	 	 	914	  	  	 	24	% 	 	 	0.3	% 	 	 	886	  	  	 	3.5	% 	
Life	  	 	247	  	 	 	6	% 	 	 	241	  	  	 	6	% 	 	 	2.4	% 	 	 	232	  	  	 	6.2	% 	
	  	 	 	 	 	 	 	 	 	 	 	 	  	 	 	 	 				 	 	 	 	  				
Total consolidated	  	$	4,185	  	 	 	100	% 	 	$	3,798	  	  	 	100	% 	 	 	10.2	% 	 	$	3,735	  	  	 	12.1	% 	
	  	 	 	 	 	 	 	 	 	 	 	 	  	 	 	 	 				 	 	 	 	  				
Net premiums earned	  				 				 				  				 				 				  				
Property and all other	  	$	1,252	  	 	 	31	% 	 	$	1,067	  	  	 	30	% 	 	 	17.4	% 	 				  				
Casualty	  	 	1,480	  	 	 	37	% 	 	 	1,353	  	  	 	38	% 	 	 	9.5	% 	 				  				
	  	 	 	 	 	 	 	 	 	 	 	 	  	 	 	 	 				 				  				
Subtotal	  	 	2,732	  	 	 	68	% 	 	 	2,420	  	  	 	68	% 	 	 	12.9	% 	 	$	2,384	  	  	 	14.6	% 	
Agriculture	  	 	103	  	 	 	3	% 	 	 	52	  	  	 	1	% 	 	 	96.8	% 	 	 	52	  	  	 	96.8	% 	
Personal accident (A&H) (1)	  	 	894	  	 	 	23	% 	 	 	874	  	  	 	25	% 	 	 	2.3	% 	 	 	845	  	  	 	5.8	% 	
Life	  	 	241	  	 	 	6	% 	 	 	227	  	  	 	6	% 	 	 	5.8	% 	 	 	220	  	  	 	9.3	% 	
	  	 	 	 	 	 	 	 	 	 	 	 	  	 	 	 	 				 	 	 	 	  				
Total consolidated	  	$	3,970	  	 	 	100	% 	 	$	3,573	  	  	 	100	% 	 	 	11.1	% 	 	$	3,501	  	  	 	13.4	% 	
	  	 	 	 	 	 	 	 	 	 	 	 	  	 	 	 	 				 	 	 	 	  				
Operating income (loss)	  				 				 				  				 				 				  				
Property, casualty, and all other	  	$	645	  	 	 	82	% 	 	$	581	  	  	 	78	% 	 	 	11.0	% 	 	$	576	  	  	 	12.0	% 	
Agriculture	  	 	(25	) 	 	 	-3	% 	 	 	7	  	  	 	1	% 	 	 	NM	  	 	 	7	  	  	 	NM	  	
Personal accident (A&H) (1)	  	 	114	  	 	 	15	% 	 	 	124	  	  	 	16	% 	 	 	-8.2	% 	 	 	121	  	  	 	-5.9	% 	
Life	  	 	43	  	 	 	6	% 	 	 	34	  	  	 	5	% 	 	 	28.2	% 	 	 	34	  	  	 	27.4	% 	
	  	 	 	 	 	 	 	 	 	 	 	 	  	 	 	 	 				 	 	 	 	  				
Total consolidated	  	$	777	  	 	 	100	% 	 	$	746	  	  	 	100	% 	 	 	4.2	% 	 	$	738	  	  	 	5.3	% 	

(1)	For purposes of this schedule only, A&H results from our Combined North American and International businesses, normally included in the Life and Insurance – Overseas General segments, respectively, are included in the Personal Accident (A&H) line items above.	
(2)	Prior periods on a constant dollar basis.	

Line of Business	  	Page 4	

					
	  	ACE Limited	  		
	  	Global P&C Results—Consecutive Quarters	  		
	  	(in millions of U.S. dollars, except ratios)	  		
	  	(Unaudited)	  		
Global P&C includes the company’s Insurance – North American P&C segment (refer to page 6), Insurance – Overseas General segment (refer to page 8), Global Reinsurance segment (refer to page 9), and Corporate (not separately disclosed in the Financial Supplement). Global P&C excludes the Insurance – North American Agriculture and Life segments.

 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Full Year	 	
Global P&C (Including Corporate)	  	1Q-14	 	 	4Q-13	 	 	3Q-13	 	 	2Q-13	 	 	1Q-13	 	 	2013	 	
Gross premiums written	  	$	4,618	  	 	$	4,719	  	 	$	4,417	  	 	$	4,769	  	 	$	4,186	  	 	$	18,091	  	
Net premiums written	  	 	3,497	  	 	 	3,456	  	 	 	3,336	  	 	 	3,451	  	 	 	3,183	  	 	 	13,426	  	
Net premiums earned	  	 	3,383	  	 	 	3,456	  	 	 	3,294	  	 	 	3,236	  	 	 	3,044	  	 	 	13,030	  	
Losses and loss expenses	  	 	1,884	  	 	 	1,925	  	 	 	1,768	  	 	 	1,812	  	 	 	1,737	  	 	 	7,242	  	
Policy acquisition costs	  	 	612	  	 	 	608	  	 	 	560	  	 	 	550	  	 	 	530	  	 	 	2,248	  	
Administrative expenses	  	 	466	  	 	 	485	  	 	 	473	  	 	 	475	  	 	 	424	  	 	 	1,857	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Underwriting income	  	 	421	  	 	 	438	  	 	 	493	  	 	 	399	  	 	 	353	  	 	 	1,683	  	
Net investment income	  	 	482	  	 	 	486	  	 	 	455	  	 	 	464	  	 	 	462	  	 	 	1,867	  	
Interest expense	  	 	68	  	 	 	66	  	 	 	68	  	 	 	69	  	 	 	56	  	 	 	259	  	
Other income (expense)—operating (1)	  	 	(15	) 	 	 	(15	) 	 	 	(21	) 	 	 	(23	) 	 	 	(14	) 	 	 	(73	) 	
Income tax expense	  	 	95	  	 	 	85	  	 	 	127	  	 	 	83	  	 	 	76	  	 	 	371	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Global P&C operating income	  	 	725	  	 	 	758	  	 	 	732	  	 	 	688	  	 	 	669	  	 	 	2,847	  	
Net realized gains (losses)	  	 	(26	) 	 	 	—  	  	 	 	(3	) 	 	 	67	  	 	 	79	  	 	 	143	  	
Net realized gains (losses) related to unconsolidated entities	  	 	53	  	 	 	27	  	 	 	24	  	 	 	8	  	 	 	28	  	 	 	87	  	
Income tax expense (benefit) on net realized gains (losses)	  	 	(5	) 	 	 	6	  	 	 	4	  	 	 	14	  	 	 	31	  	 	 	55	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Global P&C net income	  	$	757	  	 	$	779	  	 	$	749	  	 	$	749	  	 	$	745	  	 	$	3,022	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Additional Global P&C financial data	  				 				 				 				 				 				
% Change versus prior year period	  				 				 				 				 				 				
Net premiums written as reported	  	 	9.9	% 	 	 	13.1	% 	 	 	8.9	% 	 	 	9.5	% 	 	 	7.3	% 	 	 	9.7	% 	
Net premiums earned as reported	  	 	11.2	% 	 	 	11.6	% 	 	 	9.1	% 	 	 	10.7	% 	 	 	6.8	% 	 	 	9.6	% 	
Net premiums written constant $	  	 	11.6	% 	 				 				 				 				 				
Net premiums earned constant $	  	 	13.4	% 	 				 				 				 				 				
Other ratios	  				 				 				 				 				 				
Net premiums written/gross premiums written	  	 	76	% 	 	 	73	% 	 	 	76	% 	 	 	72	% 	 	 	76	% 	 	 	74	% 	
Combined ratio	  				 				 				 				 				 				
Loss and loss expense ratio	  	 	55.7	% 	 	 	55.7	% 	 	 	53.7	% 	 	 	56.0	% 	 	 	57.1	% 	 	 	55.6	% 	
Policy acquisition cost ratio	  	 	18.1	% 	 	 	17.6	% 	 	 	17.0	% 	 	 	17.0	% 	 	 	17.4	% 	 	 	17.3	% 	
Administrative expense ratio	  	 	13.8	% 	 	 	14.1	% 	 	 	14.3	% 	 	 	14.7	% 	 	 	13.9	% 	 	 	14.2	% 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Combined ratio	  	 	87.6	% 	 	 	87.4	% 	 	 	85.0	% 	 	 	87.7	% 	 	 	88.4	% 	 	 	87.1	% 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Combined ratio excluding catastrophe losses and PPD	  	 	89.0	% 	 	 	89.9	% 	 	 	88.9	% 	 	 	89.2	% 	 	 	89.5	% 	 	 	89.4	% 	
Expense ratio	  	 	31.9	% 	 	 	31.7	% 	 	 	31.3	% 	 	 	31.7	% 	 	 	31.3	% 	 	 	31.5	% 	
Expense ratio excluding A&H	  	 	28.4	% 	 	 	27.9	% 	 	 	27.6	% 	 	 	28.3	% 	 	 	27.7	% 	 	 	27.9	% 	
Catastrophe reinstatement premiums (expensed) collected—pre-tax	  	$	—  	  	 	$	1	  	 	$	2	  	 	$	—  	  	 	$	—  	  	 	$	3	  	
Catastrophe losses—pre-tax	  	$	52	  	 	$	35	  	 	$	78	  	 	$	78	  	 	$	32	  	 	$	223	  	
Favorable prior period development (PPD)—pre-tax (2)	  	$	(100	) 	 	$	(122	) 	 	$	(200	) 	 	$	(128	) 	 	$	(67	) 	 	$	(517	) 	
Loss and loss expense ratio excluding catastrophe losses and PPD	  	 	57.1	% 	 	 	58.3	% 	 	 	57.7	% 	 	 	57.6	% 	 	 	58.1	% 	 	 	58.0	% 	
 
(1)	Excludes portion of net realized investment gains and losses related to unconsolidated entities.	
(2)	For Q1 2014, favorable prior period development is net of $2 million of profit-sharing commissions that are included in the expense ratio.	

Global P&C	  	Page 5	

					
	  	ACE Limited	  		
	  	Segment Results—Consecutive Quarters	  		
	  	(in millions of U.S. dollars, except ratios)	  		
	  	(Unaudited)	  		
Insurance – North American P&C

 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Full Year	 	
 	  	1Q-14	 	 	4Q-13	 	 	3Q-13	 	 	2Q-13	 	 	1Q-13	 	 	2013	 	
Gross premiums written	  	$	2,024	  	 	$	2,439	  	 	$	2,135	  	 	$	2,327	  	 	$	1,819	  	 	$	8,720	  	
Net premiums written	  	 	1,418	  	 	 	1,602	  	 	 	1,500	  	 	 	1,529	  	 	 	1,284	  	 	 	5,915	  	
Net premiums earned	  	 	1,487	  	 	 	1,511	  	 	 	1,444	  	 	 	1,428	  	 	 	1,338	  	 	 	5,721	  	
Losses and loss expenses	  	 	940	  	 	 	985	  	 	 	963	  	 	 	950	  	 	 	878	  	 	 	3,776	  	
Policy acquisition costs	  	 	159	  	 	 	153	  	 	 	159	  	 	 	142	  	 	 	143	  	 	 	597	  	
Administrative expenses	  	 	161	  	 	 	164	  	 	 	153	  	 	 	159	  	 	 	125	  	 	 	601	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Underwriting income	  	 	227	  	 	 	209	  	 	 	169	  	 	 	177	  	 	 	192	  	 	 	747	  	
Net investment income	  	 	270	  	 	 	266	  	 	 	254	  	 	 	250	  	 	 	251	  	 	 	1,021	  	
Interest expense	  	 	3	  	 	 	1	  	 	 	3	  	 	 	3	  	 	 	(2	) 	 	 	5	  	
Other income (expense)—operating	  	 	—  	  	 	 	1	  	 	 	(3	) 	 	 	(4	) 	 	 	1	  	 	 	(5	) 	
Income tax expense	  	 	83	  	 	 	73	  	 	 	75	  	 	 	79	  	 	 	85	  	 	 	312	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Operating income	  	 	411	  	 	 	402	  	 	 	342	  	 	 	341	  	 	 	361	  	 	 	1,446	  	
Net realized gains (losses)	  	 	(9	) 	 	 	9	  	 	 	9	  	 	 	28	  	 	 	26	  	 	 	72	  	
Net realized gains (losses) related to unconsolidated entities	  	 	20	  	 	 	19	  	 	 	16	  	 	 	14	  	 	 	14	  	 	 	63	  	
Income tax expense on net realized gains (losses)	  	 	—  	  	 	 	10	  	 	 	4	  	 	 	12	  	 	 	9	  	 	 	35	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income	  	$	422	  	 	$	420	  	 	$	363	  	 	$	371	  	 	$	392	  	 	$	1,546	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Combined ratio	  				 				 				 				 				 				
Loss and loss expense ratio	  	 	63.2	% 	 	 	65.2	% 	 	 	66.7	% 	 	 	66.6	% 	 	 	65.6	% 	 	 	66.0	% 	
Policy acquisition cost ratio	  	 	10.7	% 	 	 	10.1	% 	 	 	11.1	% 	 	 	9.9	% 	 	 	10.7	% 	 	 	10.4	% 	
Administrative expense ratio	  	 	10.8	% 	 	 	10.9	% 	 	 	10.5	% 	 	 	11.1	% 	 	 	9.4	% 	 	 	10.5	% 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Combined ratio	  	 	84.7	% 	 	 	86.2	% 	 	 	88.3	% 	 	 	87.6	% 	 	 	85.7	% 	 	 	86.9	% 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Combined ratio excluding catastrophe losses and PPD	  	 	87.1	% 	 	 	87.2	% 	 	 	88.3	% 	 	 	87.3	% 	 	 	87.7	% 	 	 	87.6	% 	
Catastrophe reinstatement premiums expensed—pre-tax	  	$	—  	  	 	$	—  	  	 	$	—  	  	 	$	(1	) 	 	$	—  	  	 	$	(1	) 	
Catastrophe losses—pre-tax	  	$	32	  	 	$	12	  	 	$	21	  	 	$	50	  	 	$	11	  	 	$	94	  	
Favorable prior period development (PPD)—pre-tax (1)	  	$	(68	) 	 	$	(28	) 	 	$	(19	) 	 	$	(47	) 	 	$	(40	) 	 	$	(134	) 	
Loss and loss expense ratio excluding catastrophe losses and PPD	  	 	65.7	% 	 	 	66.3	% 	 	 	66.9	% 	 	 	66.5	% 	 	 	67.6	% 	 	 	66.8	% 	
% Change versus prior year period	  				 				 				 				 				 				
Net premiums written	  	 	10.5	% 	 	 	11.8	% 	 	 	9.3	% 	 	 	11.8	% 	 	 	9.3	% 	 	 	10.6	% 	
Net premiums earned	  	 	11.2	% 	 	 	12.3	% 	 	 	10.6	% 	 	 	12.7	% 	 	 	8.9	% 	 	 	11.1	% 	
Other ratios	  				 				 				 				 				 				
Net premiums written/gross premiums written	  	 	70	% 	 	 	66	% 	 	 	70	% 	 	 	66	% 	 	 	71	% 	 	 	68	% 	
 
(1)	For Q1 2014, favorable prior period development is net of $2 million of profit-sharing commissions that are included in the expense ratio.	

Insurance - North American P&C	  	Page 6	

					
	  	ACE Limited	  		
	  	Segment Results—Consecutive Quarters	  		
	  	(in millions of U.S. dollars, except ratios)	  		
	  	(Unaudited)	  		
Insurance – North American Agriculture

 	  	1Q-14	 	 	4Q-13	 	 	3Q-13	 	 	2Q-13	 	 	1Q-13	 	 	Full Year
2013	 	
Gross premiums written	  	$	234	  	 	$	217	  	 	$	1,446	  	 	$	749	  	 	$	249	  	 	$	2,661	  	
Net premiums written	  	 	194	  	 	 	256	  	 	 	805	  	 	 	453	  	 	 	113	  	 	 	1,627	  	
Net premiums earned	  	 	103	  	 	 	426	  	 	 	849	  	 	 	351	  	 	 	52	  	 	 	1,678	  	
Losses and loss expenses	  	 	126	  	 	 	453	  	 	 	746	  	 	 	293	  	 	 	32	  	 	 	1,524	  	
Losses from fair value changes on crop derivatives (1)	  	 	2	  	 	 	—  	  	 	 	1	  	 	 	—  	  	 	 	—  	  	 	 	1	  	
Policy acquisition costs	  	 	5	  	 	 	(3	) 	 	 	32	  	 	 	20	  	 	 	4	  	 	 	53	  	
Administrative expenses	  	 	1	  	 	 	(2	) 	 	 	5	  	 	 	3	  	 	 	5	  	 	 	11	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Underwriting income (loss) (2)	  	 	(31	) 	 	 	(22	) 	 	 	65	  	 	 	35	  	 	 	11	  	 	 	89	  	
Net investment income	  	 	7	  	 	 	7	  	 	 	6	  	 	 	7	  	 	 	6	  	 	 	26	  	
Interest expense	  	 	—  	  	 	 	1	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	1	  	
Other income (expense)—operating	  	 	(8	) 	 	 	(8	) 	 	 	(8	) 	 	 	(8	) 	 	 	(8	) 	 	 	(32	) 	
Income tax expense (benefit)	  	 	(7	) 	 	 	(4	) 	 	 	13	  	 	 	8	  	 	 	2	  	 	 	19	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Operating income (loss)	  	 	(25	) 	 	 	(20	) 	 	 	50	  	 	 	26	  	 	 	7	  	 	 	63	  	
Net realized gains (losses) excluding losses from fair value changes on crop derivatives (1)	  	 	—  	  	 	 	—  	  	 	 	1	  	 	 	1	  	 	 	—  	  	 	 	2	  	
Net realized gains (losses) related to unconsolidated entities	  	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	
Income tax expense on net realized gains (losses)	  	 	—  	  	 	 	—  	  	 	 	1	  	 	 	—  	  	 	 	—  	  	 	 	1	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income (loss)	  	$	(25	) 	 	$	(20	) 	 	$	50	  	 	$	27	  	 	$	7	  	 	$	64	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Combined ratio	  				 				 				 				 				 				
Loss and loss expense ratio	  	 	124.6	% 	 	 	106.3	% 	 	 	88.0	% 	 	 	83.4	% 	 	 	61.9	% 	 	 	90.9	% 	
Policy acquisition cost ratio	  	 	4.5	% 	 	 	-0.5	% 	 	 	3.8	% 	 	 	5.6	% 	 	 	7.5	% 	 	 	3.2	% 	
Administrative expense ratio	  	 	1.2	% 	 	 	-0.6	% 	 	 	0.5	% 	 	 	0.9	% 	 	 	9.9	% 	 	 	0.6	% 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Combined ratio	  	 	130.3	% 	 	 	105.2	% 	 	 	92.3	% 	 	 	89.9	% 	 	 	79.3	% 	 	 	94.7	% 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Combined ratio excluding catastrophe losses and PPD	  	 	88.9	% 	 	 	104.8	% 	 	 	93.3	% 	 	 	89.1	% 	 	 	85.4	% 	 	 	95.1	% 	
Catastrophe reinstatement premiums—pre-tax	  	$	—  	  	 	$	—  	  	 	$	—  	  	 	$	—  	  	 	$	—  	  	 	$	—  	  	
Catastrophe losses—pre-tax	  	$	1	  	 	$	2	  	 	$	2	  	 	$	3	  	 	$	—  	  	 	$	7	  	
Unfavorable (favorable) prior period development (PPD)—pre-tax (3)	  	$	38	  	 	$	—  	  	 	$	(10	) 	 	$	—  	  	 	$	(3	) 	 	$	(13	) 	
Loss and loss expense ratio excluding catastrophe losses and PPD	  	 	78.3	% 	 	 	105.8	% 	 	 	88.9	% 	 	 	82.6	% 	 	 	67.9	% 	 	 	91.3	% 	
% Change versus prior year period	  				 				 				 				 				 				
Net premiums written	  	 	72.1	% 	 	 	203.6	% 	 	 	-30.8	% 	 	 	-8.0	% 	 	 	-5.1	% 	 	 	-12.5	% 	
Net premiums earned	  	 	96.8	% 	 	 	62.3	% 	 	 	-27.2	% 	 	 	-8.8	% 	 	 	-11.1	% 	 	 	-10.4	% 	
Other ratios	  				 				 				 				 				 				
Net premiums written/gross premiums written	  	 	83	% 	 	 	118	% 	 	 	56	% 	 	 	60	% 	 	 	45	% 	 	 	61	% 	
 
(1)	Losses from fair value changes on crop derivatives are reclassified from Net realized gains (losses) for this presentation.	
(2)	We assess the performance of our Insurance – North American Agriculture segment based on underwriting income which includes losses from fair value changes on crop derivatives.	
(3)	For Q1 2014, unfavorable prior period development is net of $35 million of favorable net earned premium adjustments and $1 million of favorable profit-sharing commissions.	

Insurance - North American Agriculture	  	Page 7	

					
	 	ACE Limited	 		
	 	Segment Results—Consecutive Quarters	 		
	 	(in millions of U.S. dollars, except ratios)	 		
	 	(Unaudited)	 		
Insurance – Overseas General

 	  	1Q-14	 	 	4Q-13	 	 	3Q-13	 	 	2Q-13	 	 	1Q-13	 	 	Full Year
2013	 	
Gross premiums written	  	$	2,261	  	 	$	2,126	  	 	$	2,018	  	 	$	2,097	  	 	$	2,073	  	 	$	8,314	  	
Net premiums written	  	 	1,771	  	 	 	1,699	  	 	 	1,571	  	 	 	1,630	  	 	 	1,620	  	 	 	6,520	  	
Net premiums earned	  	 	1,612	  	 	 	1,700	  	 	 	1,611	  	 	 	1,563	  	 	 	1,459	  	 	 	6,333	  	
Losses and loss expenses	  	 	817	  	 	 	835	  	 	 	712	  	 	 	768	  	 	 	747	  	 	 	3,062	  	
Policy acquisition costs	  	 	386	  	 	 	405	  	 	 	349	  	 	 	360	  	 	 	339	  	 	 	1,453	  	
Administrative expenses	  	 	250	  	 	 	258	  	 	 	263	  	 	 	251	  	 	 	236	  	 	 	1,008	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Underwriting income	  	 	159	  	 	 	202	  	 	 	287	  	 	 	184	  	 	 	137	  	 	 	810	  	
Net investment income	  	 	132	  	 	 	143	  	 	 	128	  	 	 	136	  	 	 	132	  	 	 	539	  	
Interest expense	  	 	1	  	 	 	1	  	 	 	1	  	 	 	2	  	 	 	1	  	 	 	5	  	
Other income (expense)—operating	  	 	(9	) 	 	 	(13	) 	 	 	(16	) 	 	 	(14	) 	 	 	(5	) 	 	 	(48	) 	
Income tax expense	  	 	42	  	 	 	52	  	 	 	78	  	 	 	48	  	 	 	24	  	 	 	202	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Operating income	  	 	239	  	 	 	279	  	 	 	320	  	 	 	256	  	 	 	239	  	 	 	1,094	  	
Net realized gains (losses)	  	 	(10	) 	 	 	(16	) 	 	 	(8	) 	 	 	8	  	 	 	34	  	 	 	18	  	
Net realized gains (losses) related to unconsolidated entities	  	 	15	  	 	 	4	  	 	 	2	  	 	 	(3	) 	 	 	6	  	 	 	9	  	
Income tax expense (benefit) on net realized gains (losses)	  	 	(5	) 	 	 	(4	) 	 	 	—  	  	 	 	2	  	 	 	22	  	 	 	20	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income	  	$	249	  	 	$	271	  	 	$	314	  	 	$	259	  	 	$	257	  	 	$	1,101	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Combined ratio	  				 				 				 				 				 				
Loss and loss expense ratio	  	 	50.7	% 	 	 	49.2	% 	 	 	44.2	% 	 	 	49.1	% 	 	 	51.2	% 	 	 	48.4	% 	
Policy acquisition cost ratio	  	 	23.9	% 	 	 	23.8	% 	 	 	21.6	% 	 	 	23.0	% 	 	 	23.2	% 	 	 	22.9	% 	
Administrative expense ratio	  	 	15.5	% 	 	 	15.1	% 	 	 	16.4	% 	 	 	16.1	% 	 	 	16.2	% 	 	 	15.9	% 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Combined ratio	  	 	90.1	% 	 	 	88.1	% 	 	 	82.2	% 	 	 	88.2	% 	 	 	90.6	% 	 	 	87.2	% 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Combined ratio excluding catastrophe losses and PPD	  	 	90.5	% 	 	 	91.6	% 	 	 	89.4	% 	 	 	90.5	% 	 	 	90.7	% 	 	 	90.5	% 	
Catastrophe reinstatement premiums expensed—pre-tax	  	$	—  	  	 	$	—  	  	 	$	—  	  	 	$	—  	  	 	$	—  	  	 	$	—  	  	
Catastrophe losses—pre-tax	  	$	17	  	 	$	17	  	 	$	33	  	 	$	17	  	 	$	21	  	 	$	88	  	
Favorable prior period development (PPD)—pre-tax	  	$	(23	) 	 	$	(76	) 	 	$	(149	) 	 	$	(52	) 	 	$	(22	) 	 	$	(299	) 	
Loss and loss expense ratio excluding catastrophe losses and PPD	  	 	51.1	% 	 	 	52.6	% 	 	 	51.4	% 	 	 	51.3	% 	 	 	51.3	% 	 	 	51.7	% 	
% Change versus prior year period	  				 				 				 				 				 				
Net premiums written as reported	  	 	9.3	% 	 	 	15.1	% 	 	 	13.5	% 	 	 	10.5	% 	 	 	6.0	% 	 	 	11.2	% 	
Net premiums earned as reported	  	 	10.4	% 	 	 	13.5	% 	 	 	12.5	% 	 	 	10.1	% 	 	 	4.9	% 	 	 	10.3	% 	
Net premiums written constant $	  	 	12.3	% 	 				 				 				 				 				
Net premiums earned constant $	  	 	14.6	% 	 				 				 				 				 				
Other ratios	  				 				 				 				 				 				
Net premiums written/gross premiums written	  	 	78	% 	 	 	80	% 	 	 	78	% 	 	 	78	% 	 	 	78	% 	 	 	78	% 	

Insurance - Overseas General	  	Page 8	

					
	 	ACE Limited	 		
	 	Segment Results—Consecutive Quarters	 		
	 	(in millions of U.S. dollars, except ratios)	 		
	 	(Unaudited)	 		
Global Reinsurance

 	  	1Q-14	 	 	4Q-13	 	 	3Q-13	 	 	2Q-13	 	 	1Q-13	 	 	Full Year
2013	 	
Gross premiums written	  	$	333	  	 	$	154	  	 	$	264	  	 	$	345	  	 	$	294	  	 	$	1,057	  	
Net premiums written	  	 	308	  	 	 	155	  	 	 	265	  	 	 	292	  	 	 	279	  	 	 	991	  	
Net premiums earned	  	 	284	  	 	 	245	  	 	 	239	  	 	 	245	  	 	 	247	  	 	 	976	  	
Losses and loss expenses	  	 	126	  	 	 	104	  	 	 	93	  	 	 	93	  	 	 	106	  	 	 	396	  	
Policy acquisition costs	  	 	67	  	 	 	49	  	 	 	52	  	 	 	48	  	 	 	48	  	 	 	197	  	
Administrative expenses	  	 	14	  	 	 	14	  	 	 	12	  	 	 	12	  	 	 	12	  	 	 	50	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Underwriting income	  	 	77	  	 	 	78	  	 	 	82	  	 	 	92	  	 	 	81	  	 	 	333	  	
Net investment income	  	 	77	  	 	 	71	  	 	 	66	  	 	 	71	  	 	 	72	  	 	 	280	  	
Interest expense	  	 	1	  	 	 	1	  	 	 	2	  	 	 	1	  	 	 	1	  	 	 	5	  	
Other income (expense)—operating	  	 	1	  	 	 	2	  	 	 	1	  	 	 	1	  	 	 	—  	  	 	 	4	  	
Income tax expense	  	 	10	  	 	 	5	  	 	 	16	  	 	 	7	  	 	 	8	  	 	 	36	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Operating income	  	 	144	  	 	 	145	  	 	 	131	  	 	 	156	  	 	 	144	  	 	 	576	  	
Net realized gains (losses)	  	 	(8	) 	 	 	7	  	 	 	(5	) 	 	 	31	  	 	 	20	  	 	 	53	  	
Net realized gains (losses) related to unconsolidated entities	  	 	18	  	 	 	4	  	 	 	6	  	 	 	(3	) 	 	 	8	  	 	 	15	  	
Income tax expense on net realized gains (losses)	  	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income	  	$	154	  	 	$	156	  	 	$	132	  	 	$	184	  	 	$	172	  	 	$	644	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Combined ratio	  				 				 				 				 				 				
Loss and loss expense ratio	  	 	44.4	% 	 	 	42.5	% 	 	 	38.9	% 	 	 	37.7	% 	 	 	43.0	% 	 	 	40.5	% 	
Policy acquisition cost ratio	  	 	23.5	% 	 	 	20.4	% 	 	 	21.7	% 	 	 	19.9	% 	 	 	19.3	% 	 	 	20.3	% 	
Administrative expense ratio	  	 	5.0	% 	 	 	5.5	% 	 	 	5.2	% 	 	 	4.6	% 	 	 	5.0	% 	 	 	5.1	% 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Combined ratio	  	 	72.9	% 	 	 	68.4	% 	 	 	65.8	% 	 	 	62.2	% 	 	 	67.3	% 	 	 	65.9	% 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Combined ratio excluding catastrophe losses and PPD	  	 	75.1	% 	 	 	73.6	% 	 	 	71.0	% 	 	 	70.0	% 	 	 	69.2	% 	 	 	70.9	% 	
Catastrophe reinstatement premiums collected—pre-tax	  	$	—  	  	 	$	1	  	 	$	2	  	 	$	1	  	 	$	—  	  	 	$	4	  	
Catastrophe losses—pre-tax	  	$	3	  	 	$	6	  	 	$	24	  	 	$	11	  	 	$	—  	  	 	$	41	  	
Favorable prior period development (PPD)—pre-tax	  	$	(9	) 	 	$	(18	) 	 	$	(32	) 	 	$	(29	) 	 	$	(5	) 	 	$	(84	) 	
Loss and loss expense ratio excluding catastrophe losses and PPD	  	 	46.5	% 	 	 	47.7	% 	 	 	44.6	% 	 	 	45.3	% 	 	 	44.8	% 	 	 	45.6	% 	
% Change versus prior year period	  				 				 				 				 				 				
Net premiums written as reported	  	 	10.3	% 	 	 	5.5	% 	 	 	-13.6	% 	 	 	-5.3	% 	 	 	6.1	% 	 	 	-3.3	% 	
Net premiums earned as reported	  	 	15.5	% 	 	 	-3.7	% 	 	 	-15.0	% 	 	 	3.6	% 	 	 	7.3	% 	 	 	-2.6	% 	
Net premiums written constant $	  	 	10.5	% 	 				 				 				 				 				
Net premiums earned constant $	  	 	15.4	% 	 				 				 				 				 				
Other ratios	  				 				 				 				 				 				
Net premiums written/gross premiums written	  	 	92	% 	 	 	101	% 	 	 	100	% 	 	 	85	% 	 	 	95	% 	 	 	94	% 	

Global Reinsurance	  	Page 9	

					
	 	ACE Limited	 		
	 	Segment Results—Consecutive Quarters	 		
	 	(in millions of U.S. dollars)	 		
	 	(Unaudited)	 		
Life

 	  	1Q-14	 	 	4Q-13	 	 	3Q-13	 	 	2Q-13	 	 	1Q-13	 	 	Full Year
2013	 	
Gross premiums written	  	$	522	  	 	$	526	  	 	$	510	  	 	$	512	  	 	$	528	  	 	$	2,076	  	
Net premiums written	  	 	494	  	 	 	504	  	 	 	479	  	 	 	487	  	 	 	502	  	 	 	1,972	  	
Net premiums earned	  	 	484	  	 	 	481	  	 	 	467	  	 	 	480	  	 	 	477	  	 	 	1,905	  	
Losses and loss expenses	  	 	151	  	 	 	139	  	 	 	141	  	 	 	145	  	 	 	157	  	 	 	582	  	
Policy benefits (1)	  	 	114	  	 	 	136	  	 	 	138	  	 	 	110	  	 	 	131	  	 	 	515	  	
(Gains) losses from fair value changes in separate account assets (1)	  	 	6	  	 	 	(9	) 	 	 	(14	) 	 	 	11	  	 	 	(4	) 	 	 	(16	) 	
Policy acquisition costs	  	 	111	  	 	 	97	  	 	 	86	  	 	 	95	  	 	 	80	  	 	 	358	  	
Administrative expenses	  	 	68	  	 	 	87	  	 	 	85	  	 	 	86	  	 	 	85	  	 	 	343	  	
Net investment income	  	 	64	  	 	 	64	  	 	 	61	  	 	 	63	  	 	 	63	  	 	 	251	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Life underwriting income (2)	  	 	98	  	 	 	95	  	 	 	92	  	 	 	96	  	 	 	91	  	 	 	374	  	
Interest expense	  	 	3	  	 	 	3	  	 	 	4	  	 	 	4	  	 	 	4	  	 	 	15	  	
Other income (expense)—operating (1)	  	 	(5	) 	 	 	(4	) 	 	 	(2	) 	 	 	(7	) 	 	 	(5	) 	 	 	(18	) 	
Income tax expense	  	 	13	  	 	 	2	  	 	 	11	  	 	 	9	  	 	 	12	  	 	 	34	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Operating income	  	 	77	  	 	 	86	  	 	 	75	  	 	 	76	  	 	 	70	  	 	 	307	  	
Net realized gains (losses):	  				 				 				 				 				 				
Mark-to-market on guaranteed living benefits derivative (net of related hedges)	  	 	(67	) 	 	 	149	  	 	 	39	  	 	 	33	  	 	 	78	  	 	 	299	  	
Foreign exchange gains (losses) and all other	  	 	(9	) 	 	 	5	  	 	 	4	  	 	 	3	  	 	 	49	  	 	 	61	  	
Net realized gains (losses) related to unconsolidated entities	  	 	(2	) 	 	 	(2	) 	 	 	(2	) 	 	 	4	  	 	 	5	  	 	 	5	  	
Income tax expense (benefit) on net realized gains (losses)	  	 	(3	) 	 	 	(1	) 	 	 	(1	) 	 	 	1	  	 	 	1	  	 	 	—  	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income	  	$	2	  	 	$	239	  	 	$	117	  	 	$	115	  	 	$	201	  	 	$	672	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
% Change versus prior year period	  				 				 				 				 				 				
Net premiums written as reported	  	 	-1.6	% 	 	 	-2.6	% 	 	 	-1.9	% 	 	 	0.2	% 	 	 	3.0	% 	 	 	-0.4	% 	
Net premiums earned as reported	  	 	1.3	% 	 	 	-1.5	% 	 	 	-2.7	% 	 	 	0.9	% 	 	 	1.1	% 	 	 	-0.6	% 	
Net premiums written constant $ (3)	  	 	1.1	% 	 				 				 				 				 				
Net premiums earned constant $	  	 	4.0	% 	 				 				 				 				 				
 
(1)	(Gains) losses from fair value changes in separate account assets that do not qualify for separate account reporting under GAAP are reclassified from Other income (expense) for purposes of presenting Life underwriting income. The offsetting movement in the separate account liabilities is included in Policy benefits.	
(2)	We assess the performance of our Life business based on Life underwriting income which includes Net investment income and (Gains) losses from fair value changes in separate account assets.	
(3)	Net premiums written and deposits breakdown:	

 	  	 	 	  	 	 	  	Constant $	 	
 	  	 	 	  	 	 	  	% Change	 	
 	  	 	 	  	Constant $	 	  	1Q-14 vs.	 	
 	  	1Q-14	 	  	1Q-13	 	  	1Q-13	 	
Life excluding life reinsurance (4)	  	$	629	  	  	$	610	  	  	 	3.2	% 	
Life reinsurance including variable annuity	  	 	67	  	  	 	74	  	  	 	-10.3	% 	
	  	 	 	 	  	 	 	 	  	 	 	 	
Total Life	  	$	696	  	  	$	684	  	  	 	1.7	% 	

(4)	Includes deposits collected on universal life and investment contracts of $202 million for Q1 2014 and $196 million for Q1 2013 on a constant-dollar basis. Consistent with GAAP, premiums collected on universal life and investment contracts are considered deposits and excluded from revenues.	

Life	  	Page 10	

					
	 	ACE Limited	 		
	 	Loss Reserve Rollforward	 		
	 	(in millions of U.S. dollars, except ratios)	 		
	 	(Unaudited)	 		

 	  	Unpaid Losses	 	 	Net Paid to	 	
 	  	Gross	 	 	Ceded	 	 	Net	 	 	Incurred Ratio	 	
Balance at December 31, 2012	  	$	37,946	  	 	$	11,399	  	 	$	26,547	  	 				
Losses and loss expenses incurred	  	 	2,483	  	 	 	557	  	 	 	1,926	  	 				
Losses and loss expenses paid	  	 	(2,987	) 	 	 	(932	) 	 	 	(2,055	) 	 	 	107	% 	
Other (incl. foreign exch. revaluation)	  	 	(360	) 	 	 	(106	) 	 	 	(254	) 	 				
	  	 	 	 	 	 	 	 	 	 	 	 	 				
Balance at March 31, 2013	  	$	37,082	  	 	$	10,918	  	 	$	26,164	  	 				
Losses and loss expenses incurred	  	 	3,007	  	 	 	757	  	 	 	2,250	  	 				
Losses and loss expenses paid	  	 	(2,797	) 	 	 	(941	) 	 	 	(1,856	) 	 	 	83	% 	
Other (incl. foreign exch. revaluation)	  	 	51	  	 	 	4	  	 	 	47	  	 				
	  	 	 	 	 	 	 	 	 	 	 	 	 				
Balance at June 30, 2013	  	$	37,343	  	 	$	10,738	  	 	$	26,605	  	 				
Losses and loss expenses incurred	  	 	3,617	  	 	 	962	  	 	 	2,655	  	 				
Losses and loss expenses paid	  	 	(3,285	) 	 	 	(942	) 	 	 	(2,343	) 	 	 	88	% 	
Other (incl. foreign exch. revaluation)	  	 	207	  	 	 	61	  	 	 	146	  	 				
	  	 	 	 	 	 	 	 	 	 	 	 	 				
Balance at September 30, 2013	  	$	37,882	  	 	$	10,819	  	 	$	27,063	  	 				
Losses and loss expenses incurred	  	 	3,322	  	 	 	805	  	 	 	2,517	  	 				
Losses and loss expenses paid	  	 	(3,716	) 	 	 	(993	) 	 	 	(2,723	) 	 	 	108	% 	
Other (incl. foreign exch. revaluation)	  	 	(45	) 	 	 	(19	) 	 	 	(26	) 	 				
	  	 	 	 	 	 	 	 	 	 	 	 	 				
Balance at December 31, 2013	  	$	37,443	  	 	$	10,612	  	 	$	26,831	  	 				
Losses and loss expenses incurred	  	 	2,462	  	 	 	301	  	 	 	2,161	  	 				
Losses and loss expenses paid	  	 	(3,059	) 	 	 	(762	) 	 	 	(2,297	) 	 	 	106	% 	
Other (incl. foreign exch. revaluation)	  	 	20	  	 	 	16	  	 	 	4	  	 				
	  	 	 	 	 	 	 	 	 	 	 	 	 				
Balance at March 31, 2014	  	$	36,866	  	 	$	10,167	  	 	$	26,699	  	 				
	  	 	 	 	 	 	 	 	 	 	 	 	 				
Add net recoverable on paid losses	  	 	—  	  	 	 	588	  	 	 	(588	) 	 				
	  	 	 	 	 	 	 	 	 	 	 	 	 				
Balance including net recoverable on paid losses	  	$	36,866	  	 	$	10,755	  	 	$	26,111	  	 				

			
Loss Reserve Rollforward	  	Page 11	

					
	 	ACE Limited	 		
	 	Reinsurance Recoverable Analysis	 		
	 	(in millions of U.S. dollars)	 		
	 	(Unaudited)	 		
Net Reinsurance Recoverable by Division

 	  	March 31	 	 	December 31	 	
 	  	2014	 	 	2013	 	
Reinsurance recoverable on paid losses and loss expenses	  				 				
Active operations	  	$	351	  	 	$	376	  	
Brandywine and Other Run-off	  	 	357	  	 	 	356	  	
	  	 	 	 	 	 	 	 	
Total	  	$	708	  	 	$	732	  	
	  	 	 	 	 	 	 	 	
Reinsurance recoverable on unpaid losses and loss expenses	  				 				
Active operations	  	$	9,184	  	 	$	9,576	  	
Brandywine and Other Run-off	  	 	1,249	  	 	 	1,309	  	
	  	 	 	 	 	 	 	 	
Total	  	$	10,433	  	 	$	10,885	  	
	  	 	 	 	 	 	 	 	
Gross reinsurance recoverable	  				 				
Active operations	  	$	9,535	  	 	$	9,952	  	
Brandywine and Other Run-off	  	 	1,606	  	 	 	1,665	  	
	  	 	 	 	 	 	 	 	
Total	  	$	11,141	  	 	$	11,617	  	
	  	 	 	 	 	 	 	 	
Provision for uncollectible reinsurance (1)	  				 				
Active operations	  	$	(249	) 	 	$	(251	) 	
Brandywine and Other Run-off	  	 	(137	) 	 	 	(139	) 	
	  	 	 	 	 	 	 	 	
Total	  	$	(386	) 	 	$	(390	) 	
	  	 	 	 	 	 	 	 	
Net reinsurance recoverable	  				 				
Active operations	  	$	9,286	  	 	$	9,701	  	
Brandywine and Other Run-off	  	 	1,469	  	 	 	1,526	  	
	  	 	 	 	 	 	 	 	
Total	  	$	10,755	  	 	$	11,227	  	

(1)	The provision for uncollectible reinsurance is based on a default analysis applied to gross reinsurance recoverables, net of approximately $2.3 billion of collateral.	

Reinsurance Recoverable	  	Page 12	

					
	 	ACE Limited	 		
	 	Investment Portfolio	 		
	 	(in millions of U.S. dollars)	 		
	 	(Unaudited)	 		

 	  	March 31	 	 	December 31	 	
 	  	2014	 	 	2013	 	
Market Value	  				 				 				 				
Fixed maturities available for sale	  	$	49,611	  	 				 	$	49,254	  	 				
Fixed maturities held to maturity	  	 	6,080	  	 				 	 	6,263	  	 				
Short-term investments	  	 	2,526	  	 				 	 	1,763	  	 				
	  	 	 	 	 				 	 	 	 	 				
Total fixed maturities	  	$	58,217	  	 				 	$	57,280	  	 				
	  	 	 	 	 				 	 	 	 	 				
Asset Allocation by Market Value	  				 				 				 				
Treasury	  	$	2,411	  	 	 	4	% 	 	$	2,327	  	 	 	4	% 	
Agency	  	 	1,349	  	 	 	2	% 	 	 	1,454	  	 	 	3	% 	
Corporate and asset-backed	  	 	19,650	  	 	 	34	% 	 	 	19,475	  	 	 	34	% 	
Mortgage-backed	  	 	12,277	  	 	 	21	% 	 	 	12,273	  	 	 	21	% 	
Municipal	  	 	4,599	  	 	 	8	% 	 	 	4,500	  	 	 	8	% 	
Non-U.S.	  	 	15,405	  	 	 	27	% 	 	 	15,488	  	 	 	27	% 	
Short-term investments	  	 	2,526	  	 	 	4	% 	 	 	1,763	  	 	 	3	% 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total fixed maturities	  	$	58,217	  	 	 	100	% 	 	$	57,280	  	 	 	100	% 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Credit Quality by Market Value	  				 				 				 				
AAA	  	$	9,410	  	 	 	16	% 	 	$	8,677	  	 	 	15	% 	
AA	  	 	21,652	  	 	 	37	% 	 	 	21,520	  	 	 	38	% 	
A	  	 	11,112	  	 	 	19	% 	 	 	11,168	  	 	 	19	% 	
BBB	  	 	7,306	  	 	 	12	% 	 	 	7,193	  	 	 	12	% 	
BB	  	 	4,451	  	 	 	8	% 	 	 	4,418	  	 	 	8	% 	
B	  	 	3,965	  	 	 	7	% 	 	 	3,940	  	 	 	7	% 	
Other	  	 	321	  	 	 	1	% 	 	 	364	  	 	 	1	% 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total fixed maturities	  	$	58,217	  	 	 	100	% 	 	$	57,280	  	 	 	100	% 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Cost/Amortized Cost	  				 				 				 				
Fixed maturities available for sale	  	$	48,282	  	 				 	$	48,406	  	 				
Fixed maturities held to maturity	  	 	5,887	  	 				 	 	6,098	  	 				
Short-term investments	  	 	2,526	  	 				 	 	1,763	  	 				
	  	 	 	 	 				 	 	 	 	 				
Subtotal fixed maturities	  	 	56,695	  	 				 	 	56,267	  	 				
Equity securities	  	 	845	  	 				 	 	841	  	 				
Other investments	  	 	2,823	  	 				 	 	2,671	  	 				
	  	 	 	 	 				 	 	 	 	 				
Total investment portfolio	  	$	60,363	  	 				 	$	59,779	  	 				
	  	 	 	 	 				 	 	 	 	 				
Avg. duration of fixed maturities	  	 	4.0 years	  	 				 	 	4.0 years	  	 				
Avg. market yield of fixed maturities	  	 	2.8	% 	 				 	 	3.0	% 	 				
Avg. credit quality	  	 	A/Aa	  	 				 	 	A/Aa	  	 				
Avg. yield on invested assets	  	 	3.7	% 	 				 	 	3.8	% 	 				

Investments	  	Page 13	

					
	 	ACE Limited	 		
	 	Investment Portfolio—2	 		
	 	(in millions of U.S. dollars)	 		
	 	(Unaudited)	 		
Mortgage-backed Fixed Income Portfolio
Mortgage-backed securities

 	  	S&P Credit Rating	 	
 	  	AAA	 	  	AA	 	  	A	 	  	BBB	 	  	BB and below	 	  	Total	 	
Market Value at March 31, 2014	  				  				  				  				  				  				
Agency residential mortgage-backed (RMBS)	  	$	—  	  	  	$	10,125	  	  	$	—  	  	  	$	—  	  	  	$	—  	  	  	$	10,125	  	
Non-agency RMBS	  	 	50	  	  	 	8	  	  	 	22	  	  	 	13	  	  	 	132	  	  	 	225	  	
Commercial mortgage-backed	  	 	1,897	  	  	 	13	  	  	 	14	  	  	 	3	  	  	 	—  	  	  	 	1,927	  	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total mortgage-backed securities at market value	  	$	1,947	  	  	$	10,146	  	  	$	36	  	  	$	16	  	  	$	132	  	  	$	12,277	  	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
U.S. Corporate and Asset-backed Fixed Income Portfolios
Market Value at March 31, 2014

 	  	S&P Credit Rating	 	
 	  	Investment Grade	 	
 	  	AAA	 	  	AA	 	  	A	 	  	BBB	 	  	Total	 	
Asset-backed	  	$	477	  	  	$	95	  	  	$	—  	  	  	$	—  	  	  	$	572	  	
Banks	  	 	—  	  	  	 	—  	  	  	 	2,301	  	  	 	350	  	  	 	2,651	  	
Basic Materials	  	 	—  	  	  	 	—  	  	  	 	97	  	  	 	324	  	  	 	421	  	
Communications	  	 	—  	  	  	 	51	  	  	 	488	  	  	 	811	  	  	 	1,350	  	
Consumer, Cyclical	  	 	—  	  	  	 	98	  	  	 	315	  	  	 	372	  	  	 	785	  	
Consumer, Non-Cyclical	  	 	53	  	  	 	540	  	  	 	875	  	  	 	662	  	  	 	2,130	  	
Diversified Financial Services	  	 	—  	  	  	 	78	  	  	 	238	  	  	 	114	  	  	 	430	  	
Energy	  	 	32	  	  	 	35	  	  	 	193	  	  	 	704	  	  	 	964	  	
Industrial	  	 	—  	  	  	 	357	  	  	 	359	  	  	 	295	  	  	 	1,011	  	
Utilities	  	 	—  	  	  	 	11	  	  	 	600	  	  	 	464	  	  	 	1,075	  	
All Others	  	 	55	  	  	 	126	  	  	 	591	  	  	 	525	  	  	 	1,297	  	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total	  	$	617	  	  	$	1,391	  	  	$	6,057	  	  	$	4,621	  	  	$	12,686	  	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Market Value at March 31, 2014

 	  	S&P Credit Rating	 	
 	  	Below Investment Grade	 	
 	  	BB	 	  	B	 	  	CCC	 	  	Total	 	
Asset-backed	  	$	—  	  	  	$	4	  	  	$	16	  	  	$	20	  	
Banks	  	 	1	  	  	 	4	  	  	 	—  	  	  	 	5	  	
Basic Materials	  	 	143	  	  	 	130	  	  	 	7	  	  	 	280	  	
Communications	  	 	574	  	  	 	462	  	  	 	12	  	  	 	1,048	  	
Consumer, Cyclical	  	 	459	  	  	 	655	  	  	 	14	  	  	 	1,128	  	
Consumer, Non-Cyclical	  	 	569	  	  	 	892	  	  	 	33	  	  	 	1,494	  	
Diversified Financial Services	  	 	104	  	  	 	75	  	  	 	—  	  	  	 	179	  	
Energy	  	 	743	  	  	 	300	  	  	 	31	  	  	 	1,074	  	
Industrial	  	 	371	  	  	 	382	  	  	 	26	  	  	 	779	  	
Utilities	  	 	275	  	  	 	21	  	  	 	—  	  	  	 	296	  	
All Others	  	 	247	  	  	 	399	  	  	 	15	  	  	 	661	  	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total	  	$	3,486	  	  	$	3,324	  	  	$	154	  	  	$	6,964	  	

			
Investments 2	  	Page 14	

					
	 	ACE Limited	 		
	 	Investment Portfolio—3	 		
	 	(in millions of U.S. dollars)	 		
	 	(Unaudited)	 		
Non-U.S. Fixed Income Portfolio
March 31, 2014
Non-U.S. Government Securities

 	  	Market Value by S&P Credit Rating	 	
 	  	AAA	 	  	AA	 	  	A	 	  	BBB	 	  	BB and below	 	  	Total	 	
United Kingdom	  	$	1,077	  	  	$	—  	  	  	$	—  	  	  	$	—  	  	  	$	—  	  	  	$	1,077	  	
Republic of Korea	  	 	—  	  	  	 	664	  	  	 	35	  	  	 	—  	  	  	 	—  	  	  	 	699	  	
Canada	  	 	542	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	542	  	
United Mexican States	  	 	—  	  	  	 	2	  	  	 	324	  	  	 	118	  	  	 	—  	  	  	 	444	  	
Germany	  	 	336	  	  	 	4	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	340	  	
Province of Ontario	  	 	—  	  	  	 	326	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	326	  	
Japan	  	 	—  	  	  	 	300	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	300	  	
Federative Republic of Brazil	  	 	—  	  	  	 	—  	  	  	 	208	  	  	 	66	  	  	 	—  	  	  	 	274	  	
Kingdom of Thailand	  	 	—  	  	  	 	—  	  	  	 	202	  	  	 	62	  	  	 	—  	  	  	 	264	  	
Province of Quebec	  	 	—  	  	  	 	—  	  	  	 	246	  	  	 	—  	  	  	 	—  	  	  	 	246	  	
Other Non-U.S. Government Securities	  	 	751	  	  	 	1,116	  	  	 	226	  	  	 	249	  	  	 	305	  	  	 	2,647	  	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total	  	$	2,706	  	  	$	2,412	  	  	$	1,241	  	  	$	495	  	  	$	305	  	  	$	7,159	  	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Non-U.S. Corporate Securities

 	  	Market Value by S&P Credit Rating	 	
 	  	AAA	 	  	AA	 	  	A	 	  	BBB	 	  	BB and below	 	  	Total	 	
United Kingdom	  	$	98	  	  	$	65	  	  	$	765	  	  	$	365	  	  	$	201	  	  	$	1,494	  	
Canada	  	 	155	  	  	 	123	  	  	 	291	  	  	 	394	  	  	 	169	  	  	 	1,132	  	
Australia	  	 	55	  	  	 	99	  	  	 	311	  	  	 	107	  	  	 	64	  	  	 	636	  	
United States	  	 	7	  	  	 	125	  	  	 	105	  	  	 	211	  	  	 	168	  	  	 	616	  	
France	  	 	62	  	  	 	54	  	  	 	200	  	  	 	129	  	  	 	77	  	  	 	522	  	
Netherlands	  	 	18	  	  	 	265	  	  	 	120	  	  	 	89	  	  	 	29	  	  	 	521	  	
Germany	  	 	156	  	  	 	37	  	  	 	131	  	  	 	109	  	  	 	51	  	  	 	484	  	
Euro Supranational	  	 	194	  	  	 	51	  	  	 	—  	  	  	 	1	  	  	 	—  	  	  	 	246	  	
Switzerland	  	 	2	  	  	 	22	  	  	 	54	  	  	 	114	  	  	 	47	  	  	 	239	  	
Sweden	  	 	53	  	  	 	99	  	  	 	67	  	  	 	3	  	  	 	8	  	  	 	230	  	
Other Non-U.S. Corporate Securities	  	 	97	  	  	 	272	  	  	 	754	  	  	 	608	  	  	 	395	  	  	 	2,126	  	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total	  	$	897	  	  	$	1,212	  	  	$	2,798	  	  	$	2,130	  	  	$	1,209	  	  	$	8,246	  	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Non-U.S. Corporate Investment Portfolio
Countries represent the ultimate parent company’s country of risk. Non-U.S. corporate securities could be issued by foreign subsidiaries of U.S. corporations.

Investments 3	  	Page 15	

					
	  	ACE Limited	  		
	  	Investment Portfolio—4	  		
	  	(in millions of U.S. dollars)	  		
	  	(Unaudited)	  		
Fixed Maturity Investment Portfolio
Top 10 Global Corporate Exposures

 	 	March 31, 2014	  	Market Value	 	  	Rating	
1	 	JP Morgan Chase & Co	  	$	513	  	  	A	
2	 	General Electric Co	  	 	418	  	  	AA+	
3	 	Goldman Sachs Group Inc	  	 	367	  	  	A-	
4	 	Wells Fargo & Co	  	 	283	  	  	A+	
5	 	Citigroup Inc	  	 	277	  	  	A-	
6	 	Verizon Communications Inc	  	 	272	  	  	BBB+	
7	 	Morgan Stanley	  	 	271	  	  	A-	
8	 	Bank of America Corp	  	 	255	  	  	A-	
9	 	HSBC Holdings Plc	  	 	238	  	  	A+	
10	 	Comcast Corp	  	 	203	  	  	A-	

Investments 4	  	Page 16	

					
	  	ACE Limited	  		
	  	Net Realized and Unrealized Gains (Losses)	  		
	  	(in millions of U.S. dollars)	  		
	  	(Unaudited)	  		

 	  	Three months ended March 31, 2014	 	
 	  	Net Realized	 	 	Net Unrealized	 	  	 	 	
 	  	Gains	 	 	Gains	 	  	Net	 	
 	  	(Losses) (1)	 	 	(Losses)	 	  	Impact	 	
Fixed maturities	  	$	11	  	 	$	461	  	  	$	472	  	
Fixed income derivatives	  	 	(25	) 	 	 	—  	  	  	 	(25	) 	
	  	 	 	 	 	 	 	 	  	 	 	 	
Total fixed maturities	  	 	(14	) 	 	 	461	  	  	 	447	  	
	  	 	 	 	 	 	 	 	  	 	 	 	
Public equity	  	 	(5	) 	 	 	10	  	  	 	5	  	
Private equity	  	 	56	  	 	 	42	  	  	 	98	  	
	  	 	 	 	 	 	 	 	  	 	 	 	
Total equity	  	 	51	  	 	 	52	  	  	 	103	  	
	  	 	 	 	 	 	 	 	  	 	 	 	
Mark-to-market losses from derivative transactions (2)	  	 	(67	) 	 	 	—  	  	  	 	(67	) 	
Foreign exchange losses (2)	  	 	(9	) 	 	 	—  	  	  	 	(9	) 	
Other	  	 	(7	) 	 	 	—  	  	  	 	(7	) 	
Partially-owned entities (3)	  	 	(5	) 	 	 	—  	  	  	 	(5	) 	
Income tax expense (benefit)	  	 	(8	) 	 	 	93	  	  	 	85	  	
	  	 	 	 	 	 	 	 	  	 	 	 	
Net gains (losses)	  	$	(43	) 	 	$	420	  	  	$	377	  	

(1)	Other-than-temporary impairments for the quarter includes $5 million for fixed maturities and $6 million for public equity.	
(2)	Includes $67 million of realized losses from variable annuity reinsurance for the quarter which comprises $48 million in mark-to-market losses from derivative transactions and $19 million of losses on applicable hedges. The variable annuity reinsurance foreign exchange losses for the quarter were $2 million.	
(3)	Partially-owned entities are investments where we hold more than an insignificant percentage of the investee’s shares. The net income or loss is included in other income (expense).	

 	  	Three months ended March 31, 2013	 	
 	  	Net Realized	 	 	Net Unrealized	 	 	 	 	
 	  	Gains	 	 	Gains	 	 	Net	 	
 	  	(Losses) (4)	 	 	(Losses)	 	 	Impact	 	
Fixed maturities	  	$	36	  	 	$	(191	) 	 	$	(155	) 	
Fixed income derivatives	  	 	18	  	 	 	—  	  	 	 	18	  	
	  	 	 	 	 	 	 	 	 	 	 	 	
Total fixed maturities	  	 	54	  	 	 	(191	) 	 	 	(137	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	
Public equity	  	 	(1	) 	 	 	14	  	 	 	13	  	
Private equity	  	 	28	  	 	 	25	  	 	 	53	  	
	  	 	 	 	 	 	 	 	 	 	 	 	
Total equity	  	 	27	  	 	 	39	  	 	 	66	  	
	  	 	 	 	 	 	 	 	 	 	 	 	
Mark-to-market gains from derivative transactions (5)	  	 	78	  	 	 	—  	  	 	 	78	  	
Foreign exchange gains (5)	  	 	76	  	 	 	—  	  	 	 	76	  	
Other	  	 	—  	  	 	 	1	  	 	 	1	  	
Partially-owned entities (6)	  	 	4	  	 	 	—  	  	 	 	4	  	
Income tax expense (benefit)	  	 	32	  	 	 	(56	) 	 	 	(24	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	
Net gains (losses)	  	$	207	  	 	$	(95	) 	 	$	112	  	

(4)	Other-than-temporary impairments for the quarter includes $1 million for fixed maturities, $1 million for public equity, and $1 million for private equity.	
(5)	Includes $78 million of realized gains from variable annuity reinsurance for the quarter which comprises $328 million in mark-to-market gains from derivative transactions, net of $250 million of losses on applicable hedges. The variable annuity reinsurance foreign exchange gains for the quarter were $41 million.	
(6)	Partially-owned entities are investments where we hold more than an insignificant percentage of the investee’s shares. The net income or loss is included in other income (expense).	

Investment Gains (Losses)	  	Page 17	

					
	  	ACE Limited	  		
	  	Capital Structure	  		
	  	(in millions of U.S. dollars, except ratios)	  		
	  	(Unaudited)	  		

 	  	March 31	 	 	December 31	 	 	December 31	 	
 	  	2014	 	 	2013	 	 	2012	 	
Total short-term debt (1)	  	$	1,901	  	 	$	1,901	  	 	$	1,401	  	
Total long-term debt	  	 	3,808	  	 	 	3,807	  	 	 	3,360	  	
	  	 	 	 	 	 	 	 	 	 	 	 	
Total debt	  	$	5,709	  	 	$	5,708	  	 	$	4,761	  	
	  	 	 	 	 	 	 	 	 	 	 	 	
Total trust preferred securities	  	$	309	  	 	$	309	  	 	$	309	  	
	  	 	 	 	 	 	 	 	 	 	 	 	
Total shareholders’ equity	  	$	29,369	  	 	$	28,825	  	 	$	27,531	  	
	  	 	 	 	 	 	 	 	 	 	 	 	
Total capitalization	  	$	35,387	  	 	$	34,842	  	 	$	32,601	  	
Tangible capital (2)	  	$	30,005	  	 	$	29,438	  	 	$	27,626	  	
Leverage ratios	  				 				 				
Debt/ total capitalization	  	 	16.1	% 	 	 	16.4	% 	 	 	14.6	% 	
Debt plus trust preferred securities/ total capitalization	  	 	17.0	% 	 	 	17.3	% 	 	 	15.6	% 	
Debt/ tangible capital	  	 	19.0	% 	 	 	19.4	% 	 	 	17.2	% 	
Debt plus trust preferred securities/ tangible capital	  	 	20.1	% 	 	 	20.4	% 	 	 	18.4	% 	
 
Note:	As of March 31, 2014, there was $1.2 billion usage of credit facilities on a total commitment of $1.9 billion.	
(1)	Repurchase agreements in the amount of $426 million matured during the quarter, and there were new repurchase agreements in the amount of $426 million.	
(2)	Tangible capital is equal to total capitalization less goodwill and other intangible assets.	

Capital Structure	  	Page 18	

					
	  	ACE Limited	  		
	  	Computation of Basic and Diluted Earnings Per Share	  		
	  	(in millions of U.S. dollars, except share and per share data)	  		
	  	(Unaudited)	  		

 	  	Three months ended March 31	 	
 	  	2014	 	 	2013	 	
Numerator	  				 				
Operating income to common shares	  	$	777	  	 	$	746	  	
Adjusted net realized gains (losses), net of income tax	  	 	(43	) 	 	 	207	  	
	  	 	 	 	 	 	 	 	
Net income	  	$	734	  	 	$	953	  	
	  	 	 	 	 	 	 	 	
Rollforward of Common Shares Outstanding	  				 				
Shares—beginning of period	  	 	339,793,935	  	 	 	340,321,534	  	
Repurchase of shares (1)	  	 	(3,487,882	) 	 	 	(1,808,300	) 	
Shares issued, excluding option exercises	  	 	1,176,596	  	 	 	947,536	  	
Issued for option exercises	  	 	491,995	  	 	 	584,486	  	
	  	 	 	 	 	 	 	 	
Shares—end of period	  	 	337,974,644	  	 	 	340,045,256	  	
	  	 	 	 	 	 	 	 	
Denominator	  				 				
Weighted average shares outstanding	  	 	338,869,562	  	 	 	340,778,142	  	
Effect of other dilutive securities	  	 	3,171,174	  	 	 	3,128,226	  	
	  	 	 	 	 	 	 	 	
Adj. wtd. avg. shares outstanding and assumed conversions	  	 	342,040,736	  	 	 	343,906,368	  	
	  	 	 	 	 	 	 	 	
Basic earnings per share	  				 				
Operating income	  	$	2.29	  	 	$	2.19	  	
Adjusted net realized gains (losses), net of income tax	  	 	(0.13	) 	 	 	0.61	  	
	  	 	 	 	 	 	 	 	
Net income	  	$	2.16	  	 	$	2.80	  	
	  	 	 	 	 	 	 	 	
Diluted earnings per share	  				 				
Operating income	  	$	2.27	  	 	$	2.17	  	
Adjusted net realized gains (losses), net of income tax	  	 	(0.13	) 	 	 	0.60	  	
	  	 	 	 	 	 	 	 	
Net income	  	$	2.14	  	 	$	2.77	  	

(1)	For the period April 1, 2014 through April 28, 2014 we repurchased 475 thousand shares totaling $47 million, pursuant to a plan adopted under SEC Rule 10b5-1 and in accordance with the provisions of SEC Rule 10b-18.	

Earnings per share	  	Page 19	

					
	  	ACE Limited
Non-GAAP Financial Measures
(in millions of U.S. dollars)
(Unaudited)	  		
Regulation G—Non-GAAP Financial Measures
In presenting our results, we included and discussed certain non-GAAP measures. These non-GAAP measures, which may be defined differently by other companies, are important for an understanding of our overall results of operations and financial condition. However, they should not be viewed as a substitute for measures determined in accordance with generally accepted accounting principles (GAAP).
We provide financial measures such as gross premiums written, net premiums written, net premiums earned, and operating income on a constant-dollar basis. We believe it is useful to evaluate the trends in these measures exclusive of the effect of fluctuations in exchange rates between the U.S. dollar and the currencies in which our international business is transacted, as these exchange rates could fluctuate significantly between periods and distort the analysis of trends. The impact is determined by assuming constant foreign exchange rates between periods by translating prior period results using the same local currency exchange rates as the comparable current period.
Adjusted net realized gains (losses) is a non-GAAP financial measure that excludes realized gains and losses from fair value changes on crop derivatives. These derivatives were purchased to provide economic benefit, in a manner similar to reinsurance protection, in the event that a significant decline in commodity pricing will impact underwriting results.We view changes in the fair value of these derivatives as part of the results of our underwriting operations and therefore realized gains and losses from these derivatives are reclassified to Adjusted losses and loss expenses (a non-GAAP financial measure). Adjusted losses and loss expenses include gains and losses from fair value changes on crop derivatives.
In presenting our segment operating results, we have shown our performance with reference to underwriting results. Underwriting results are calculated by subtracting losses and loss expenses, policy benefits, policy acquisition costs, and administrative expenses from net premiums earned. We use underwriting results and operating ratios to monitor the results of our operations without the impact of certain factors, including investment income, other income and expenses, interest and income tax expense, and net realized gains (losses). P&C underwriting income is a non-GAAP financial measure which includes Adjusted losses and loss expenses. Insurance – North American Agriculture underwriting income includes gains (losses) from fair value changes on crop derivatives. Life underwriting income includes net investment income and gains (losses) from fair value changes in separate account assets that do not qualify for separate account reporting under GAAP.
Operating income or income excluding adjusted net realized gains (losses), net of tax, is a common performance measurement for insurance companies and non-GAAP financial measure. We believe this presentation enhances the understanding of our results of operations by highlighting the underlying profitability of our insurance business. We exclude adjusted net realized gains (losses) and net realized gains (losses) included in other income (expense) related to partially owned entities because the amount of these gains (losses) is heavily influenced by, and fluctuates in part according to, the availability of market opportunities. Operating income or income excluding adjusted net realized gains (losses) should not be viewed as a substitute for net income determined in accordance with GAAP.
Other income (expense) – operating is a non-GAAP financial measure and excludes the portion of net realized gains and losses related to unconsolidated entities from other income (expense). These gains and losses are reported as Net realized gains (losses) and represent the non-operating activities of entities where we hold more than an insignificant percentage of the investee’s shares. We exclude these gains and losses from other income (expense) to enhance the understanding of our core results of operations as they are heavily influenced by, and fluctuate in part according to market conditions.
Combined ratio excluding catastrophe losses and prior period development (PPD) is a non-GAAP financial measure. The ratio numerator includes losses and loss expenses, policy acquisition costs, and administrative expenses adjusted to exclude catastrophe losses and PPD. The ratio denominator includes net premiums earned adjusted to exclude the amount of reinstatement premiums (expensed) collected and net earned premium adjustments on loss sensitive policies. We believe that excluding the impact of catastrophe losses and PPD provides a better evaluation of our core underwriting performance and enhances the understanding of the trends in our property & casualty business that may be obscured by these items.
Loss and loss expense ratio excluding the impact of catastrophe losses and PPD is a non-GAAP financial measure. The loss ratio numerator includes Losses and loss expenses adjusted to exclude catastrophe losses and PPD. The loss ratio denominator includes Net premiums earned adjusted to exclude the amount of reinstatement premiums (expensed) collected. In periods where there are adjustments on loss sensitive policies, these adjustments are excluded from PPD and net earned premiums when calculating this ratio. We believe that excluding the impact of catastrophe losses and PPD provides a better evaluation of our core underwriting performance and enhances the understanding of the trends in our property & casualty business that may be obscured by these items.
P&C expense ratio excluding accident and health (A&H) is a non-GAAP financial measure and excludes the impact of our A&H business from our consolidated expense ratio. The expense ratio for the A&H business is typically higher than our traditional P&C business, and we believe that this measure provides better comparison to our peer companies that may not have a significant A&H block of business.
Global P&C performance metrics are non-GAAP financial measures and comprise consolidated operating results (including corporate) and exclude the operating results of the company’s Life and Insurance – North American Agriculture segments. We believe that these measures are useful and meaningful to investors as they are used by management to assess the company’s global P&C operations which are the most economically similar. We exclude the Insurance – North American Agriculture and Life segments because the results of these businesses do not always correlate with the results of our global P&C operations.
Life net premiums written and deposits collected, excluding life reinsurance, is a non-GAAP financial measure. Deposits collected on universal life and investment contracts (life deposits) are not reflected as revenues in our consolidated statements of operations in accordance with GAAP. However, we include life deposits in presenting growth in our Life business because new life deposits are an important component of production and key to our efforts to grow our business. However, we exclude results associated with life reinsurance as there is no new life reinsurance business currently being written.
Operating return on equity (ROE) or ROE calculated using operating income is an annualized non-GAAP financial measure and is calculated as operating income divided by average shareholders’ equity, as adjusted, for the period. To annualize a quarterly rate, multiply by four. Operating ROE is a useful measure as it enhances the understanding of the return on shareholders’ equity by highlighting the underlying profitability relative to shareholders’ equity excluding the effect of unrealized gains and losses on our investments.
Operating effective tax rate is a non-GAAP financial measure. The numerator excludes tax on adjusted net realized gains (losses). The denominator excludes adjusted net realized gains (losses), before tax. We exclude adjusted net realized gains (losses) and the related tax impact because these amounts are heavily influenced by, and fluctuate in part according to, the availability of market opportunities. Operating effective tax rate should not be viewed as a substitute for effective tax rate determined in accordance with GAAP.
Book value excluding unrealized gains (losses) on investments, or shareholders’ equity, as adjusted, is a non-GAAP financial measure and is shareholders’ equity excluding unrealized gains (losses) on investments, net of tax. We believe this measure is useful as it removes the effect of changing prices on invested assets which is heavily influenced by market conditions.
Tangible book value per common share is a non-GAAP financial measure and is shareholders’ equity less goodwill and other intangible assets divided by the shares outstanding. We believe that goodwill and other intangible assets are not indicative of our underlying insurance results or trends and make book value comparisons to less acquisitive peer companies less meaningful. A reconciliation of tangible book value per share is provided on page 22. Tangible book value per common share excluding 2013 acquisitions is shareholders’ equity less goodwill and other intangible assets divided by the shares outstanding. The numerator adds back the goodwill and other intangible assets related to the 2013 acquisitions of Fianzas Monterrey and ABA Seguros in order to adjust for the distortive effect of acquisitions.

Reconciliation Non-GAAP	  	Page 20	

					
	 	ACE Limited	 		
	 	Non-GAAP Financial Measures—2	 		
	 	(in millions of U.S. dollars, except ratios)	 		
	 	(Unaudited)	 		
Regulation G—Non-GAAP Financial Measures (continued)
The following table presents the reconciliation of Net income to Operating income:

 	  	 	 	 	 	 	  	 	 	  	 	 	  	 	 	  	Full Year	 	
 	  	1Q-14	 	 	4Q-13	 	  	3Q-13	 	  	2Q-13	 	  	1Q-13	 	  	2013	 	
Net income, as reported	  	$	734	  	 	$	998	  	  	$	916	  	  	$	891	  	  	$	953	  	  	$	3,758	  	
Adjusted net realized gains (losses)	  	 	(102	) 	 	 	154	  	  	 	41	  	  	 	104	  	  	 	206	  	  	 	505	  	
Net realized gains (losses) related to unconsolidated entities (1)	  	 	51	  	 	 	25	  	  	 	22	  	  	 	12	  	  	 	33	  	  	 	92	  	
Income tax expense (benefit) on adjusted net realized gains (losses)	  	 	(8	) 	 	 	5	  	  	 	4	  	  	 	15	  	  	 	32	  	  	 	56	  	
	  	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Operating income	  	$	777	  	 	$	824	  	  	$	857	  	  	$	790	  	  	$	746	  	  	$	3,217	  	

(1)	Realized gains (losses) on partially-owned entities, which are investments where we hold more than an insignificant percentage of the investee’s shares. The net income or loss is included in other income (expense).	
The following table presents the reconciliation of effective tax rate to the operating effective tax rate:

 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Full Year	 	
 	  	1Q-14	 	 	4Q-13	 	 	3Q-13	 	 	2Q-13	 	 	1Q-13	 	 	2013	 	
Tax expense, as reported	  	$	93	  	 	$	88	  	 	$	155	  	 	$	115	  	 	$	122	  	 	$	480	  	
Tax expense (benefit) on adjusted net realized gains (losses)	  	 	(8	) 	 	 	5	  	 	 	4	  	 	 	15	  	 	 	32	  	 	 	56	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Tax expense, adjusted	  	$	101	  	 	$	83	  	 	$	151	  	 	$	100	  	 	$	90	  	 	$	424	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income before tax, as reported	  	$	827	  	 	$	1,086	  	 	$	1,071	  	 	$	1,006	  	 	$	1,075	  	 	$	4,238	  	
Less: adjusted realized gains (losses)	  	 	(102	) 	 	 	154	  	 	 	41	  	 	 	104	  	 	 	206	  	 	 	505	  	
Less: realized gains (losses) related to unconsolidated entities	  	 	51	  	 	 	25	  	 	 	22	  	 	 	12	  	 	 	33	  	 	 	92	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Operating income before tax	  	$	878	  	 	$	907	  	 	$	1,008	  	 	$	890	  	 	$	836	  	 	$	3,641	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Effective tax rate	  	 	11.3	% 	 	 	8.1	% 	 	 	14.4	% 	 	 	11.5	% 	 	 	11.3	% 	 	 	11.3	% 	
Adjustment for tax impact of adjusted net realized gains (losses)	  	 	0.2	% 	 	 	1.1	% 	 	 	0.5	% 	 	 	-0.3	% 	 	 	-0.5	% 	 	 	0.3	% 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Operating effective tax rate	  	 	11.5	% 	 	 	9.2	% 	 	 	14.9	% 	 	 	11.2	% 	 	 	10.8	% 	 	 	11.6	% 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
The following table presents the reconciliation of ROE to Operating ROE:

 	  	 	 	 	 	 	 	Full Year	 	
 	  	1Q-14	 	 	1Q-13	 	 	2013	 	
Net income	  	$	734	  	 	$	953	  	 	$	3,758	  	
Operating income	  	$	777	  	 	$	746	  	 	$	3,217	  	
Equity—beginning of period, as reported	  	$	28,825	  	 	$	27,531	  	 	$	27,531	  	
Less: unrealized gains (losses) on investments, net of deferred tax	  	 	1,174	  	 	 	2,633	  	 	 	2,633	  	
	  	 	 	 	 	 	 	 	 	 	 	 	
Equity—beginning of period, as adjusted	  	$	27,651	  	 	$	24,898	  	 	$	24,898	  	
	  	 	 	 	 	 	 	 	 	 	 	 	
Equity—end of period, as reported	  	$	29,369	  	 	$	27,942	  	 	$	28,825	  	
Less: unrealized gains (losses) on investments, net of deferred tax	  	 	1,594	  	 	 	2,538	  	 	 	1,174	  	
	  	 	 	 	 	 	 	 	 	 	 	 	
Equity—end of period, as adjusted	  	$	27,775	  	 	$	25,404	  	 	$	27,651	  	
	  	 	 	 	 	 	 	 	 	 	 	 	
Average equity, as reported	  	$	29,097	  	 	$	27,737	  	 	$	28,178	  	
Average equity, as adjusted	  	$	27,713	  	 	$	25,151	  	 	$	26,275	  	
Operating ROE	  	 	11.2	% 	 	 	11.9	% 	 	 	12.2	% 	
ROE	  	 	10.1	% 	 	 	13.7	% 	 	 	13.3	% 	

Reconciliation Non-GAAP 2	  	Page 21	

					
	 	ACE Limited	 		
	 	Book Value and Book Value per Common Share	 		
	 	(in millions of U.S. dollars, except share and per share data)	 		
	 	(Unaudited)	 		
Reconciliation of Book Value per Common Share

 	  	March 31	 	 	December 31	 	 	March 31	 	
 	  	2014	 	 	2013	 	 	2013	 	
Shareholders’ equity	  	$	29,369	  	 	$	28,825	  	 	$	27,942	  	
Less: goodwill and other intangible assets	  	 	5,382	  	 	 	5,404	  	 	 	4,909	  	
	  	 	 	 	 	 	 	 	 	 	 	 	
Numerator for tangible book value per share	  	$	23,987	  	 	$	23,421	  	 	$	23,033	  	
	  	 	 	 	 	 	 	 	 	 	 	 	
Book value—% change over prior quarter	  	 	1.9	% 	 	 	2.2	% 	 	 	1.5	% 	
Tangible book value—% change over prior quarter	  	 	2.4	% 	 	 	2.9	% 	 	 	2.1	% 	
Denominator	  	 	337,974,644	  	 	 	339,793,935	  	 	 	340,045,256	  	
	  	 	 	 	 	 	 	 	 	 	 	 	
Book value per common share	  	$	86.90	  	 	$	84.83	  	 	$	82.17	  	
Tangible book value per common share	  	$	70.97	  	 	$	68.93	  	 	$	67.74	  	
Reconciliation of Book Value	  				 				 				
Shareholders’ equity, beginning of quarter	  	$	28,825	  	 	$	28,218	  	 	$	27,531	  	
Operating income	  	 	777	  	 	 	824	  	 	 	746	  	
Adjusted net realized gains (losses), net of tax	  	 	(43	) 	 	 	174	  	 	 	207	  	
Net unrealized gains (losses), net of tax	  	 	420	  	 	 	(145	) 	 	 	(95	) 	
Repurchase of shares	  	 	(332	) 	 	 	(57	) 	 	 	(154	) 	
Dividend declared on common shares (1)	  	 	(256	) 	 	 	(174	) 	 	 	(168	) 	
Cumulative translation, net of tax	  	 	(41	) 	 	 	(66	) 	 	 	(156	) 	
Pension liability	  	 	(5	) 	 	 	(11	) 	 	 	14	  	
Other (2)	  	 	24	  	 	 	62	  	 	 	17	  	
	  	 	 	 	 	 	 	 	 	 	 	 	
	  	$	29,369	  	 	$	28,825	  	 	$	27,942	  	

(1)	The March 31, 2014 amount includes a $0.12 per share increase related to the Q4 2013 dividend installment approved by our shareholders on January 10, 2014.	
(2)	Other primarily includes proceeds from exercise of stock options and stock compensation.	

Reconciliation Book Value	  	Page 22	

					
	  	ACE Limited
Glossary	  		
ACE Limited Consolidated comprises all segments including Corporate.
Operating return on equity (ROE) or ROE calculated using income excluding adjusted net realized gains (losses): Operating income or income excluding adjusted net realized gains (losses), net of tax, divided by average shareholders’ equity for the period excluding unrealized gains (losses) on investments, net of tax. To annualize a quarterly rate multiply by four.
Book value per common share: Shareholders’ equity divided by the shares outstanding.
Combined ratio: The sum of the loss and loss expense ratio, acquisition cost ratio and the administrative expense ratio excluding life business.
Operating effective tax rate: Income tax expense excluding tax expense (benefit) on adjusted net realized gains (losses) divided by income excluding adjusted net realized gains (losses) before tax.
Life underwriting income: Net premiums earned and net investment income less losses and loss expenses, policy benefits, acquisition costs, and administrative expenses. In addition, Life underwriting income includes gains/losses from fair value changes in separate account assets that do not qualify for separate account reporting under GAAP.
Tangible book value per common share: Shareholders’ equity less goodwill and other intangible assets divided by the shares outstanding.
Average market yield of fixed maturities: Weighted average yield to maturity of our fixed income portfolio based on the market prices of the holdings as of that date.
Average yield on invested assets: Net investment income divided by average cost of fixed maturities and other investments, and average market value of equity securities.
Tangible capital: Total capitalization less goodwill and other intangible assets.
Total capitalization: Short-term debt, long-term debt, trust preferreds, and shareholders’ equity.
NM: Not meaningful.

Glossary	  	Page 23