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) – July 21, 2015

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 July 21, 2015, ACE Limited issued a Press Release reporting its second quarter 2015 results and the availability of its second quarter 2015 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 July 21, 2015, Reporting Second Quarter 2015 Results	
		
99.2	  	Second Quarter 2015 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: July 21, 2015

EXHIBIT INDEX

Number	  	Description	  	Method of Filing	 	
			
99.1	  	Press Release, Dated July 21, 2015,	  	 	Furnished herewith	  	
	  	Reporting Second Quarter 2015 Results	  				
			
99.2	  	Second Quarter 2015 Financial Supplement	  	 	Furnished herewith	  	

Exhibit 99.1

		ACE Limited
Bärengasse 32
CH-8001 Zurich
Switzerland		acegroup.com
@ACEGroup	

NEWS RELEASE					
ACE Reports Second Quarter Operating Income of $788 Million or
$2.40 per Share, P&C Combined Ratio of 87.7% and Operating
Return on Equity of 11.4%
 
•	 	Net income of $942 million, up 21%	
 
•	 	Global P&C net premiums written, which exclude Agriculture, up 6.4% or 13.2% in constant dollars	
 
•	 	P&C underwriting income of $478 million, up 5.5% in constant dollars	
 
•	 	Net investment income of $562 million, up 3.1% in constant dollars	
 
•	 	Operating cash flow of $816 million	
 
•	 	Unfavorable foreign currency movement, compared with the prior year, negatively impacted operating income by $29 million, or $0.09 per share, and reduced Global P&C net premiums written growth by seven percentage points	
 
•	 	The transfer of the Fireman’s Fund in-force business contributed $15 million of operating income that is
non-recurring in 2016	
Zurich – July 21, 2015 – ACE Limited (NYSE: ACE) today reported net income for the quarter ended June 30, 2015, of $2.86 per share, compared with $2.28 per share for the same quarter last year. (1) Operating income was $2.40 per share, compared with $2.42 per share for the same quarter last year. Operating return on equity for the quarter was 11.4%. The property and casualty (P&C) combined ratio for the quarter was 87.7%. Book value per share increased 0.5% from March 31, 2015, to $91.27. Book value per share growth was primarily impacted by rising interest rates that resulted in unrealized losses of $672 million, after-tax, in the company’s investment portfolio, which are recorded in other comprehensive income on the balance sheet. The unrealized losses were partially offset by favorable foreign currency movement in the quarter and realized gains related to the company’s variable annuity reinsurance business, which together amounted to $205 million, after-tax. Tangible book value per share decreased 1.5% from March 31, 2015, to $72.84, compared with the prior year, and was impacted by goodwill and intangibles related to the Fireman’s Fund acquisition that closed during the quarter. Excluding the impact of the acquisition, tangible book value per share increased 0.5%.

ACE ® , ACE logo ® , and ACE insured ® are trademarks of ACE Limited.		 	1	  	

ACE LIMITED NEWS RELEASE

Second Quarter Summary
(in millions, except per share amounts)
(Unaudited)

 	  	 	 	  	 	 	 	 	 	 	(Per Share – Diluted)	 	
 	  	2015	 	  	2014	 	 	Change	 	 	2015	 	  	2014	 	 	Change	 	
Operating income, net of tax	  	$	788	  	  	$	825	  	 	 	(4.5	)% 	 	$	2.40	  	  	$	2.42	  	 	 	(0.8	)% 	
Adjusted net realized gains (losses), net of tax	  	 	154	  	  	 	(46	) 	 	 	NM	  	 	 	0.46	  	  	 	(0.14	) 	 	 	NM	  	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	
Net income		$	942	  		$	779	  		 	20.8	% 		$	2.86	  		$	2.28	  		 	25.4	% 	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	
For the six months ended June 30, 2015, net income was $4.91 per share, compared with $4.43 per share for 2014. Operating income was $4.64 per share, compared with $4.69 per share for 2014. The P&C combined ratio for the six months ended June 30, 2015, was 88.0% versus 88.2% prior year. Book value and tangible book value per share increased 1.4% and 0.3%, respectively, from December 31, 2014. Book value and tangible book value per share growth were negatively impacted by unrealized losses in the investment portfolio and unfavorable foreign currency movement during the year. Excluding foreign currency movement, book value per share increased 2.5%. Excluding foreign currency movement and the Fireman’s Fund acquisition that closed during the year, tangible book value per share increased 3.2%.
Six Months Ended Summary
(in millions, except per share amounts)
(Unaudited)

 	  	 	 	  	 	 	 	 	 	 	(Per Share – Diluted)	 	
 	  	2015	 	  	2014	 	 	Change	 	 	2015	 	  	2014	 	 	Change	 	
Operating income, net of tax	  	$	1,533	  	  	$	1,602	  	 	 	(4.3	)% 	 	$	4.64	  	  	$	4.69	  	 	 	(1.1	)% 	
Adjusted net realized gains (losses), net of tax	  	 	90	  	  	 	(89	) 	 	 	NM	  	 	 	0.27	  	  	 	(0.26	) 	 	 	NM	  	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	
Net income		$	1,623	  		$	1,513	  		 	7.2	% 		$	4.91	  		$	4.43	  		 	10.8	% 	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	
Evan G. Greenberg, Chairman and Chief Executive Officer of ACE Limited, commented: “ACE had an excellent second quarter with earnings per share essentially flat with prior year as a strong dollar impacted both revenue and earnings. After-tax operating income was $788 million, or $2.40 per share, leading to an operating ROE of 11.4%. We produced strong underwriting results marked by a P&C combined ratio of 87.7% and underwriting income that was flat with prior year and up 5.5% in constant dollars. Investment income was up 3% in constant currency – a terrific result given the interest rate environment. Global P&C net premiums written grew about 6.5%, or over 13% when adjusted for foreign exchange, as we took advantage of growth opportunities in the U.S., Asia and Latin America.
“The highlight of the quarter was our announced agreement to acquire Chubb. We are moving quickly and the senior leadership of both companies has formed teams that are already engaged in integration planning. The sense of excitement and energy from the leadership of both companies is inspiring. We

                 	 	ACE ® , ACE logo ® , and ACE insured ® are trademarks of ACE Limited.	  	2	

ACE LIMITED NEWS RELEASE

are planning to file an S-4 by the end of the month and are on track to file our regulatory approvals. In sum, I am even more convinced of the potential opportunity our combined companies represent in terms of talent and capabilities.”
Operating highlights for the quarter ended June 30, 2015, were as follows:

(in millions of U.S. dollars except for percentages)	  	2Q
2015	 	 	2Q
2014	 	 	Change	 	
				
P&C	  				 				 				
Net premiums written	  	$	4,284	  	 	$	4,061	  	 	 	5.5	% 	
Net premiums written constant-dollar	  				 	$	3,839	  	 	 	11.6	% 	
Underwriting income	  	$	478	  	 	$	478	  	 	 	—  	  	
Combined ratio	  	 	87.7	% 	 	 	87.5	% 	 				
Current accident year underwriting income excluding catastrophe losses	  	$	449	  	 	$	432	  	 	 	3.6	% 	
Current accident year combined ratio excluding catastrophe losses	  	 	88.4	% 	 	 	88.7	% 	 				
				
Global P&C (excludes Agriculture)	  				 				 				
Net premiums written	  	$	3,905	  	 	$	3,673	  	 	 	6.4	% 	
Net premiums written constant-dollar	  				 	$	3,451	  	 	 	13.2	% 	
Underwriting income	  	$	457	  	 	$	451	  	 	 	1.4	% 	
Combined ratio	  	 	87.1	% 	 	 	87.1	% 	 				
Current accident year underwriting income excluding catastrophe losses	  	$	421	  	 	$	396	  	 	 	6.0	% 	
Current accident year combined ratio excluding catastrophe losses	  	 	88.2	% 	 	 	88.7	% 	 				
				
Agriculture	  				 				 				
Net premiums written	  	$	379	  	 	$	388	  	 	 	(2.4	)% 	
Underwriting income	  	$	21	  	 	$	27	  	 	 	(24.4	)% 	
Combined ratio	  	 	93.6	% 	 	 	91.8	% 	 				
Current accident year underwriting income excluding catastrophe losses	  	$	28	  	 	$	36	  	 	 	(23.3	)% 	
Current accident year combined ratio excluding catastrophe losses	  	 	91.4	% 	 	 	89.1	% 	 				

                 	 	ACE ® , ACE logo ® , and ACE insured ® are trademarks of ACE Limited.	  	3	

ACE LIMITED NEWS RELEASE

 
 	•	 	P&C net premiums earned increased 0.8%, or 7% in constant dollars. Global P&C net premiums earned increased 1.2%, or 8% in constant dollars.	
 
 	•	 	Underwriting income included a $49 million benefit related to the transfer of the Fireman’s Fund in-force business at the time of the transaction and will be non-recurring in 2016. This benefit was partially offset by purchase accounting intangible amortization of $29 million, included in other income, resulting in a net $20 million pre-tax, or $15 million after-tax, increase in operating income which will not recur in 2016.	
 
 	•	 	The P&C expense ratio for the quarter was 28.8%, compared with 29.3% last year. The Global P&C expense ratio, which excludes Agriculture, was 30.6% compared with 31.4% last year. The Agriculture expense ratio for the quarter was 8.3% compared with 7.4% last year.	
 
 	•	 	Total pre-tax and after-tax catastrophe losses including reinstatement premiums were $124 million (3.2 percentage points of the combined ratio) and $106 million, respectively, compared with $80 million (2.1 percentage points of the combined ratio) and $67 million, respectively, last year.	
 
 	•	 	Favorable prior period development pre-tax and after-tax for the quarter were $153 million (3.9 percentage points of the combined ratio) and $128 million, respectively, compared with $126 million (3.3 percentage points of the combined ratio) and $106 million, respectively, last year.	
 
 	•	 	Operating cash flow was $816 million for the quarter.	
 
 	•	 	Net loss reserves increased $717 million in the quarter, principally reflecting the acquisition of Fireman’s Fund and favorable foreign currency movement since March 31, 2015. Net loss reserves increased $132 million for the year.	
 
 	•	 	Net investment income was $562 million compared with $556 million last year. This quarter was negatively impacted by foreign currency movement of $11 million.	
 
 	•	 	Net realized and unrealized losses pre-tax totaled $559 million for the quarter. Net realized gains of $161 million included a gain of $102 million from derivative accounting related to variable annuity reinsurance. Net unrealized losses of $720 million included an unrealized loss of $850 million in the investment portfolio, primarily due to rising interest rates, partially offset by an unrealized foreign exchange gain of $136 million.	
 
 	•	 	Operating return on equity was 11.4% for the quarter and 11.0% year to date. Return on equity computed using net income was 12.7% for the quarter and 11.0% year to date.	
 
 	•	 	Share repurchases totaled $394 million, or approximately 3.7 million shares, during the quarter. The company has repurchased approximately 6.7 million shares for $734 million through June 30, 2015. The company has discontinued its share repurchase program in connection with the announced planned acquisition of Chubb.	
 
 	•	 	Book value per share increased 0.5% to $91.27 from $90.81 at March 31, 2015, and increased 1.4% from $90.02 at December 31, 2014. For the year, book value per share, excluding foreign currency movement, increased 2.5% from December 31, 2014.	
 
 	•	 	Tangible book value per share decreased 1.5% to $72.84 from $73.94 at March 31, 2015, and increased 0.3% from $72.61 at December 31, 2014. For the year, tangible book value per share, excluding foreign currency movement and the impact of goodwill and intangibles related to the acquisition of Fireman’s Fund, increased 3.2%.	
Details of financial results by business segment are available in the ACE Limited Financial Supplement. Key segment items for the quarter ended June 30, 2015, include:
 
 	•	 	Insurance – North American P&C: Net premiums written increased 20.8%. Gross premiums written and net premiums written included $428 million and $252 million, respectively, from the transfer of the Fireman’s Fund in-force business at the time of the transaction and will be non-recurring in 2016. Excluding the transfer, net premiums written increased 6% on a constant-dollar basis. The combined ratio was 85.2% compared with 87.1%. Excluding the transfer, the combined ratio was 88.1%. The current accident year combined ratio excluding catastrophe losses was 85.0% compared with 87.3%.	

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ACE LIMITED NEWS RELEASE

 
 	•	 	Insurance – North American Agriculture: Net premiums written decreased 2.4%. The combined ratio was 93.6% compared with 91.8%. The current accident year combined ratio excluding catastrophe losses was 91.4% compared with 89.1%.	
 
 	•	 	Insurance – Overseas General: Net premiums written decreased 5.1%, or increased 7.6% on a constant-dollar basis. The combined ratio was 89.2% compared with 87.1%. The current accident year combined ratio excluding catastrophe losses was 89.8% compared with 89.3%.	
 
 	•	 	Global Reinsurance: Net premiums written decreased 5.9%, or 3.9% on a constant-dollar basis. The combined ratio was 65.7% compared with 69.9%. The current accident year combined ratio excluding catastrophe losses was 79.6% compared with 75.4%.	
 
 	•	 	Life segment: Operating income was $67 million compared with $72 million. International life insurance net premiums written and deposits collected increased 8.2% on a constant-dollar basis for the year.	
Please refer to the ACE Limited Financial Supplement , dated June 30, 2015, 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 second quarter earnings conference call on Wednesday, July 22, 2015, beginning at 8:30 a.m. Eastern. The earnings conference call will be available via live webcast at www.acegroup.com or by dialing 800-967-7188 (within the United States) or 719-325-2322 (international), passcode 1713107. 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, August 5, 2015, 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 1713107.
About ACE Group
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 .
Investor Contact
Helen Wilson: (441) 299-9283; helen.wilson@acegroup.com
Media Contact
Jeffrey Zack: (212) 827-4444; jeffrey.zack@acegroup.com

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ACE LIMITED NEWS RELEASE

(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).
Throughout this document there are various measures presented on a constant-dollar basis (i.e., excludes the impact of foreign exchange). We believe it is useful to evaluate the trends in our results, 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), 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 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 impacts underwriting results. We view gains and losses on 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. The P&C combined ratio includes adjusted losses and loss expenses in the ratio numerator.
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) 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 and prior period development (PPD). 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) because the amount of these gains (losses) is heavily influenced by the availability of market opportunities. In addition, we disclose operating income excluding the impact of foreign exchange in order to adjust for the distortive effects of fluctuations in exchange rates.
P&C combined ratio excluding catastrophe losses and PPD and 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.

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ACE LIMITED NEWS RELEASE

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.
International life net premiums written and deposits collected, is adjusted to include deposits collected on universal life and investment contracts (life deposits). 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 insurance business because new life deposits are an important component of production and key to our efforts to grow our business.
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.
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. In addition, we disclose per share measures for book value and tangible book value that exclude the impact of foreign currency fluctuations during 2015 in order to adjust for the distortive effects of fluctuations in exchange rates.
Tangible book value per common share excluding 2015 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 acquisition of the Fireman’s Fund high net worth personal lines business in order to control for the distortive effect of acquisitions.
Other income (expense) – operating excludes from consolidated Other income (expense) the portion of net realized gains and losses related to unconsolidated entities and gains and losses from fair value changes in separate account assets that do not qualify for separate account reporting under GAAP. Net realized gains (losses) related to unconsolidated entities is excluded from operating income in order to enhance the understanding of our core results of operations as they are heavily influenced by, and fluctuate in part according to market conditions.
See reconciliation of Non-GAAP Financial Measures on pages 22-24 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

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ACE LIMITED NEWS RELEASE

Cautionary Statement Regarding Forward-Looking Statements:
Forward-looking statements made in this press release, such as those related to company performance, including 2015 performance and growth opportunities, and statements about the benefits of the proposed transaction involving ACE and Chubb, ACE’s and Chubb’s plans, objectives, expectations and intentions and other statements that are not historical facts 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 (SEC).
In addition, with regard to the proposed transaction involving ACE and Chubb, important factors that could cause actual results to differ materially from those indicated by the forward-looking statements include, without limitation, the following: the inability to complete the transaction in a timely manner; the inability to complete the transaction due to the failure of Chubb’s shareholders to approve the transaction agreement or the failure of ACE shareholders to approve, among other matters, the issuance of ACE common shares in connection with the transaction; the failure to satisfy other conditions to completion of the transaction, including receipt of required regulatory approvals; the failure of the proposed transaction to close for any other reason; the possibility that any of the anticipated benefits of the proposed transaction will not be realized; the risk that integration of Chubb’s operations with those of ACE will be materially delayed or will be more costly or difficult than expected; the effect of the announcement of the transaction on ACE’s, Chubb’s or the combined company’s respective business relationships, operating results and business generally; and diversion of management’s attention from ongoing business operations and opportunities. In addition, you should carefully consider the risks and uncertainties and other factors that may affect future results of the combined company described in the section entitled “Risk Factors” in the joint proxy statement/prospectus to be delivered to ACE’s and Chubb’s respective shareholders, and in ACE’s and Chubb’s respective filings with the SEC.
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.
Additional Information and Where to Find It
This press release does not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any vote or approval. This press release may be deemed to be solicitation material in respect of the proposed transaction between ACE and Chubb. In connection with the proposed transaction, ACE intends to file a registration statement on Form S-4, containing a joint proxy statement/prospectus with the SEC. The final joint proxy statement/prospectus will be delivered to the

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ACE LIMITED NEWS RELEASE

shareholders of ACE and Chubb. This press release is not a substitute for the registration statement, definitive joint proxy statement/prospectus or any other documents that ACE or Chubb may file with the SEC or send to shareholders in connection with the proposed transaction. SHAREHOLDERS ARE URGED TO READ ALL RELEVANT DOCUMENTS FILED WITH THE SEC, INCLUDING THE JOINT PROXY STATEMENT/PROSPECTUS, BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED TRANSACTION.
Shareholders will be able to obtain copies of the joint proxy statement/prospectus and other documents filed with the SEC (when available) free of charge at the SEC’s website, http://www.sec.gov. Copies of documents filed with the SEC by ACE will be made available free of charge on ACE’s website at www.acegroup.com. Copies of documents filed with the SEC by Chubb will be made available free of charge on Chubb’s website at www.chubb.com.
Participants in Solicitation
ACE, Chubb and their respective directors, executive officers and other members of management and employees may be deemed to be participants in the solicitation of proxies in respect of the proposed transaction. Information about the directors and executive officers of ACE is set forth in the proxy statement for ACE’s 2015 Annual General Meeting, which was filed with the SEC on April 8, 2015, and ACE’s Annual Report on Form 10-K for the year ended December 31, 2014, which was filed with the SEC on February 27, 2015. Information about the directors and executive officers of Chubb is set forth in the proxy statement for Chubb’s 2015 Annual Meeting of Shareholders, which was filed with the SEC on March 13, 2015, and Chubb’s Annual Report on Form 10-K for the year ended December 31, 2014, which was filed with the SEC on February 26, 2015. Other information regarding the participants in the proxy solicitation and a description of their direct and indirect interests, by security holdings or otherwise, will be contained in the joint proxy statement/prospectus and other relevant materials filed with the SEC. You may obtain free copies of these documents as described above.
(tables to follow)

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ACE LIMITED NEWS RELEASE

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

 	  	June 30
2015	 	  	December 31
2014	 	
			
Assets	  				  				
Investments	  	$	63,265	  	  	$	62,904	  	
Cash	  	 	790	  	  	 	655	  	
Insurance and reinsurance balances receivable	  	 	5,757	  	  	 	5,426	  	
Reinsurance recoverable on losses and loss expenses	  	 	11,775	  	  	 	11,992	  	
Other assets	  	 	18,253	  	  	 	17,271	  	
	  	 	 	 	  	 	 	 	
Total assets		$	99,840	  		$	98,248	  	

Liabilities									
Unpaid losses and loss expenses		$	38,230	  		$	38,315	  	
Unearned premiums		 	8,879	  		 	8,222	  	
Other liabilities		 	23,176	  		 	22,124	  	
	  	 	 	 	  	 	 	 	
Total liabilities		 	70,285	  		 	68,661	  	

Shareholders’ equity									
Total shareholders’ equity		 	29,555	  		 	29,587	  	
	  	 	 	 	  	 	 	 	
Total liabilities and shareholders’ equity		$	99,840	  		$	98,248	  	

Book value per common share		$	91.27	  		$	90.02	  	

                 	 	ACE ® , ACE logo ® , and ACE insured ® are trademarks of ACE Limited.	  	10	

ACE LIMITED NEWS RELEASE

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

 	  	Three Months Ended	 	 	Six Months Ended	 	
 	  	June 30	 	 	June 30	 	
 	  	2015	 	 	2014	 	 	2015	 	 	2014	 	
Gross premiums written	  	$	6,504	  	 	$	6,006	  	 	$	11,826	  	 	$	11,380	  	
Net premiums written	  	 	4,784	  	 	 	4,559	  	 	 	8,860	  	 	 	8,744	  	
Net premiums earned	  	 	4,360	  	 	 	4,332	  	 	 	8,287	  	 	 	8,302	  	
Losses and loss expenses	  	 	2,417	  	 	 	2,388	  	 	 	4,539	  	 	 	4,549	  	
Policy benefits	  	 	153	  	 	 	144	  	 	 	295	  	 	 	258	  	
Policy acquisition costs	  	 	727	  	 	 	758	  	 	 	1,434	  	 	 	1,486	  	
Administrative expenses	  	 	578	  	 	 	566	  	 	 	1,132	  	 	 	1,101	  	
Net investment income	  	 	562	  	 	 	556	  	 	 	1,113	  	 	 	1,109	  	
Net realized gains (losses)	  	 	126	  	 	 	(73	) 	 	 	37	  	 	 	(177	) 	
Interest expense	  	 	71	  	 	 	72	  	 	 	139	  	 	 	143	  	
Other income (expense):	  				 				 				 				
Gains (losses) from separate account assets	  	 	6	  	 	 	17	  	 	 	17	  	 	 	11	  	
Other	  	 	(23	) 	 	 	8	  	 	 	(29	) 	 	 	31	  	
Income tax expense	  	 	143	  	 	 	133	  	 	 	263	  	 	 	226	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income		$	942	  		$	779	  		$	1,623	  		$	1,513	  	

Diluted earnings per share:																	
					
Operating income		$	2.40	  		$	2.42	  		$	4.64	  		$	4.69	  	
Net income		$	2.86	  		$	2.28	  		$	4.91	  		$	4.43	  	
					
Weighted average diluted shares outstanding		 	328.7	  		 	341.1	  		 	330.2	  		 	341.6	  	

P&C combined ratio																	
Loss and loss expense ratio		 	58.9	% 		 	58.2	% 		 	58.0	% 		 	58.0	% 	
Policy acquisition cost ratio		 	15.7	% 		 	16.6	% 		 	16.5	% 		 	17.1	% 	
Administrative expense ratio		 	13.1	% 		 	12.7	% 		 	13.5	% 		 	13.1	% 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
P&C combined ratio		 	87.7	% 		 	87.5	% 		 	88.0	% 		 	88.2	% 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
P&C underwriting income		$	478	  		$	478	  		$	880	  		$	868	  	
Other income (expense) – operating		$	(56	) 		$	(28	) 		$	(88	) 		$	(56	) 	

                 	 	ACE ® , ACE logo ® , and ACE insured ® are trademarks of ACE Limited.	  	11	

ACE LIMITED NEWS RELEASE

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

 	  	Three Months Ended	 	 	Six Months Ended	 	
 	  	June 30	 	 	June 30	 	
 	  	2015	 	 	2014	 	 	2015	 	 	2014	 	
					
Gross Premiums Written	  				 				 				 				
					
Insurance – North American P&C	  	$	2,905	  	 	$	2,347	  	 	$	5,030	  	 	$	4,371	  	
Insurance – North American Agriculture	  	 	566	  	 	 	601	  	 	 	694	  	 	 	835	  	
Insurance – Overseas General	  	 	2,212	  	 	 	2,224	  	 	 	4,467	  	 	 	4,485	  	
Global Reinsurance	  	 	292	  	 	 	308	  	 	 	584	  	 	 	641	  	
Life	  	 	529	  	 	 	526	  	 	 	1,051	  	 	 	1,048	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total		$	6,504	  		$	6,006	  		$	11,826	  		$	11,380	  	

Net Premiums Written																	
					
Insurance – North American P&C		$	1,975	  		$	1,635	  		$	3,405	  		$	3,053	  	
Insurance – North American Agriculture		 	379	  		 	388	  		 	467	  		 	582	  	
Insurance – Overseas General		 	1,669	  		 	1,760	  		 	3,463	  		 	3,531	  	
Global Reinsurance		 	261	  		 	278	  		 	534	  		 	586	  	
Life		 	500	  		 	498	  		 	991	  		 	992	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total		$	4,784	  		$	4,559	  		$	8,860	  		$	8,744	  	

Net Premiums Earned																	
					
Insurance – North American P&C		$	1,688	  		$	1,542	  		$	3,214	  		$	3,029	  	
Insurance – North American Agriculture		 	321	  		 	330	  		 	385	  		 	433	  	
Insurance – Overseas General		 	1,644	  		 	1,709	  		 	3,281	  		 	3,321	  	
Global Reinsurance		 	220	  		 	261	  		 	446	  		 	545	  	
Life		 	487	  		 	490	  		 	961	  		 	974	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total		$	4,360	  		$	4,332	  		$	8,287	  		$	8,302	  	

Operating Income (loss)																	
					
Insurance – North American P&C		$	395	  		$	378	  		$	740	  		$	789	  	
Insurance – North American Agriculture		 	15	  		 	19	  		 	50	  		 	(6	) 	
Insurance – Overseas General		 	240	  		 	282	  		 	481	  		 	521	  	
Global Reinsurance		 	145	  		 	146	  		 	273	  		 	290	  	
Life		 	67	  		 	72	  		 	133	  		 	149	  	
Corporate		 	(74	) 		 	(72	) 		 	(144	) 		 	(141	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total		$	788	  		$	825	  		$	1,533	  		$	1,602	  	

					
                 	 	ACE ® , ACE logo ® , and ACE insured ® are trademarks of ACE Limited.	  	12	

Exhibit 99.2

 
	
Investor Contact
Helen M. Wilson
Phone: (441) 299-9283
email: investorrelations@acegroup.com
 	
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.
 	
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 as indicated by such statements. For example, forward-looking statements related to financial performance including exposures, reserves and recoverables could be affected by the frequency of unpredictable catastrophic events, actual loss experience, uncertainties in the reserving or settlement process, currency exchange fluctuations, 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—For Reference Only	  	 	6	  	
	  	- Insurance—North American P&C	  	 	7	  	
	  	- Insurance—North American Agriculture	  	 	8	  	
	  	- Insurance—Overseas General	  	 	9	  	
	  	- Global Reinsurance	  	 	10	  	
	  	- Life	  	 	11	  	
			
V.	  	Balance Sheet Details	  				
	  	- Loss Reserve Rollforward	  	 	12	  	
	  	- Reinsurance Recoverable Analysis	  	 	13	  	
	  	- Investment Portfolio	  	 	14 - 17	  	
	  	- Net Realized and Unrealized Gains (Losses)	  	 	18	  	
	  	- Capital Structure	  	 	19	  	
	  	- Computation of Basic and Diluted Earnings Per Share	  	 	20	  	
	  	- Book Value and Book Value per Common Share	  	 	21	  	
			
VI.	  	Other Disclosures	  				
	  	- Non-GAAP Financial Measures	  	 	22 - 24	  	
	  	- Glossary	  	 	25	  	

	  		

					
	  	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.

 	 	 	Constant $	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Constant $	 	
 	 	 	 	 	% Change	 	 	 	 	 	% Change	 	 	 	 	 	 	 	 	% Change	 	 	 	 	 	% Change	 	
 	 	Three months ended June 30	 	 	2Q-15 vs.	 	 	Constant $	 	 	2Q-15 vs.	 	 	Six months ended June 30	 	 	YTD-15 vs.	 	 	Constant $	 	 	YTD-15 vs.	 	
 	 	2015	 	 	2014	 	 	2Q-14	 	 	2014 (2)	 	 	2Q-14 (2)	 	 	2015	 	 	2014	 	 	YTD-14	 	 	2014 (2)	 	 	YTD-14  (2)	 	
Gross premiums written (1)	 	$	6,504	  	 	$	6,006	  	 	 	8.3	% 	 	$	5,718	  	 	 	13.7	% 	 	$	11,826	  	 	$	11,380	  	 	 	3.9	% 	 	$	10,873	  	 	 	8.8	% 	
Net premiums written (1)	 	$	4,784	  	 	$	4,559	  	 	 	4.9	% 	 	$	4,318	  	 	 	10.8	% 	 	$	8,860	  	 	$	8,744	  	 	 	1.3	% 	 	$	8,322	  	 	 	6.5	% 	
P&C net premiums written (1) (3)	 	$	4,284	  	 	$	4,061	  	 	 	5.5	% 	 	$	3,839	  	 	 	11.6	% 	 	$	7,869	  	 	$	7,752	  	 	 	1.5	% 	 	$	7,363	  	 	 	6.9	% 	
Global P&C net premiums written (1) (3)	 	$	3,905	  	 	$	3,673	  	 	 	6.4	% 	 	$	3,451	  	 	 	13.2	% 	 	$	7,402	  	 	$	7,170	  	 	 	3.2	% 	 	$	6,781	  	 	 	9.2	% 	
Net premiums earned	 	$	4,360	  	 	$	4,332	  	 	 	0.7	% 	 	$	4,093	  	 	 	6.5	% 	 	$	8,287	  	 	$	8,302	  	 	 	-0.2	% 	 	$	7,897	  	 	 	4.9	% 	
Net investment income	 	$	562	  	 	$	556	  	 	 	1.0	% 	 	$	545	  	 	 	3.1	% 	 	$	1,113	  	 	$	1,109	  	 	 	0.3	% 	 	$	1,091	  	 	 	2.0	% 	
Operating income (1)	 	$	788	  	 	$	825	  	 	 	-4.5	% 	 	$	796	  	 	 	-0.9	% 	 	$	1,533	  	 	$	1,602	  	 	 	-4.3	% 	 	$	1,553	  	 	 	-1.3	% 	
Net income	 	$	942	  	 	$	779	  	 	 	20.8	% 	 				 				 	$	1,623	  	 	$	1,513	  	 	 	7.2	% 	 				 				
Comprehensive income	 	$	397	  	 	$	1,348	  	 	 	-70.6	% 	 				 				 	$	1,039	  	 	$	2,456	  	 	 	-57.7	% 	 				 				
Operating cash flow	 	$	816	  	 	$	846	  	 				 				 				 	$	1,891	  	 	$	2,096	  	 				 				 				
P&C combined ratio (3)	 				 				 				 				 				 				 				 				 				 				
Loss and loss expense ratio	 	 	58.9	% 	 	 	58.2	% 	 				 				 				 	 	58.0	% 	 	 	58.0	% 	 				 				 				
Underwriting and administrative expense ratio	 	 	28.8	% 	 	 	29.3	% 	 				 				 				 	 	30.0	% 	 	 	30.2	% 	 				 				 				
	 	 	 	 	 	 	 	 	 				 				 				 	 	 	 	 	 	 	 	 				 				 				
Combined ratio	 	 	87.7	% 	 	 	87.5	% 	 				 				 				 	 	88.0	% 	 	 	88.2	% 	 				 				 				
Operating return on equity (ROE)	 	 	11.4	% 	 	 	11.8	% 	 				 				 				 	 	11.0	% 	 	 	11.5	% 	 				 				 				
ROE	 	 	12.7	% 	 	 	10.4	% 	 				 				 				 	 	11.0	% 	 	 	10.2	% 	 				 				 				
Operating effective tax rate (4)	 	 	14.7	% 	 	 	13.7	% 	 				 				 				 	 	14.2	% 	 	 	12.7	% 	 				 				 				
Effective tax rate	 	 	13.2	% 	 	 	14.6	% 	 				 				 				 	 	13.9	% 	 	 	13.0	% 	 				 				 				
Diluted earnings per share	 				 				 				 				 				 				 				 				 				 				
Operating income	 	$	2.40	  	 	$	2.42	  	 	 	-0.8	% 	 				 				 	$	4.64	  	 	$	4.69	  	 	 	-1.1	% 	 				 				
Net income	 	$	2.86	  	 	$	2.28	  	 	 	25.4	% 	 				 				 	$	4.91	  	 	$	4.43	  	 	 	10.8	% 	 				 				
											
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	% Change	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	December 31	 	 	2Q-15 vs.	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	2014	 	 	4Q-14	 	
Book value per common share	 				 				 				 				 				 	$	91.27	  	 				 				 	$	90.02	  	 	 	1.4	% 	
Book value per common share excluding foreign currency (5)	 				 				 				 				 				 	$	92.31	  	 				 				 	$	90.02	  	 	 	2.5	% 	
Tangible book value per common share	 				 				 				 				 				 	$	72.84	  	 				 				 	$	72.61	  	 	 	0.3	% 	
Tangible book value per common share excluding foreign currency (5)	 				 				 				 				 				 	$	73.45	  	 				 				 	$	72.61	  	 	 	1.2	% 	
Tangible book value per common share excluding acquisitions (6)	 				 				 				 				 				 	$	74.30	  	 				 				 	$	72.61	  	 	 	2.3	% 	
Tangible book value per common share excluding acquisitions and foreign currency (5) (6)	 				 				 				 				 				 	$	74.91	  	 				 				 	$	72.61	  	 	 	3.2	% 	
Weighted average basic common shares outstanding	 	 	325.5	  	 	 	337.8	  	 				 				 				 	 	326.8	  	 	 	338.4	  	 				 				 				
Weighted average diluted common shares outstanding	 	 	328.7	  	 	 	341.1	  	 				 				 				 	 	330.2	  	 	 	341.6	  	 				 				 				
Debt plus trust preferred securities/ tangible capital	 				 				 				 				 				 	 	21.8	% 	 	 	20.0	% 	 				 	 	20.7	% 	 				
 
(1)	Included in Q2 2015 is gross premiums written of $428 million, net premiums written of $252 million, and operating income benefit of $15 million related to the transfer of the Fireman’s Fund in-force business at the time of the transaction that is non-recurring in 2016.	
(2)	Prior periods on a constant dollar basis.	
(3)	See non-GAAP financial measures.	
(4)	Operating effective tax rate is dependent upon the mix of earnings from different jurisdictions with various tax rates. A change in the geographic mix of earnings would change the effective tax rate. The increase in the operating effective tax rate for the quarter was primarily due to a lower percentage of operating earnings being generated in lower tax paying jurisdictions.	
(5)	For 2015, book value per common share and tangible book value per common share exclude the impact of foreign currency movement during the year.	
(6)	For 2015, tangible book value per common share excludes the impact from goodwill and intangibles relating to the acquisition of the Fireman’s Fund high net worth personal lines insurance business in the United States of $474 million.	

Financial Highlights	  	Page 1	

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

ACE Limited Consolidated

 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	YTD	 	 	YTD	 	 	Full Year	 	
 	 	2Q-15	 	 	1Q-15	 	 	4Q-14	 	 	3Q-14	 	 	2Q-14	 	 	2015	 	 	2014	 	 	2014	 	
Consolidated Results (Including Corporate) Excluding Life Segment (1)	 				 				 				 				 				 				 				 				
Gross premiums written (2)	 	$	5,975	  	 	$	4,800	  	 	$	5,193	  	 	$	5,736	  	 	$	5,480	  	 	$	10,775	  	 	$	10,332	  	 	$	21,261	  	
Net premiums written (2)	 	 	4,284	  	 	 	3,585	  	 	 	3,803	  	 	 	4,232	  	 	 	4,061	  	 	 	7,869	  	 	 	7,752	  	 	 	15,787	  	
Net premiums earned	 	 	3,873	  	 	 	3,453	  	 	 	3,871	  	 	 	4,265	  	 	 	3,842	  	 	 	7,326	  	 	 	7,328	  	 	 	15,464	  	
Adjusted losses and loss expenses (1)	 	 	2,282	  	 	 	1,970	  	 	 	2,269	  	 	 	2,494	  	 	 	2,234	  	 	 	4,252	  	 	 	4,246	  	 	 	9,009	  	
Policy acquisition costs	 	 	609	  	 	 	600	  	 	 	641	  	 	 	702	  	 	 	637	  	 	 	1,209	  	 	 	1,254	  	 	 	2,597	  	
Administrative expenses	 	 	504	  	 	 	481	  	 	 	517	  	 	 	483	  	 	 	493	  	 	 	985	  	 	 	960	  	 	 	1,960	  	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Underwriting income	 	 	478	  	 	 	402	  	 	 	444	  	 	 	586	  	 	 	478	  	 	 	880	  	 	 	868	  	 	 	1,898	  	
Net investment income	 	 	496	  	 	 	485	  	 	 	508	  	 	 	497	  	 	 	490	  	 	 	981	  	 	 	979	  	 	 	1,984	  	
Interest expense	 	 	69	  	 	 	67	  	 	 	66	  	 	 	66	  	 	 	69	  	 	 	136	  	 	 	137	  	 	 	269	  	
Other income (expense) - operating (3)	 	 	(56	) 	 	 	(30	) 	 	 	(25	) 	 	 	(29	) 	 	 	(26	) 	 	 	(86	) 	 	 	(49	) 	 	 	(103	) 	
Income tax expense	 	 	128	  	 	 	111	  	 	 	110	  	 	 	169	  	 	 	120	  	 	 	239	  	 	 	208	  	 	 	487	  	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Operating income (including Corporate) excluding Life segment (2)	 	 	721	  	 	 	679	  	 	 	751	  	 	 	819	  	 	 	753	  	 	 	1,400	  	 	 	1,453	  	 	 	3,023	  	
Life segment operating income	 	 	67	  	 	 	66	  	 	 	76	  	 	 	72	  	 	 	72	  	 	 	133	  	 	 	149	  	 	 	297	  	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Consolidated operating income (2)	 	 	788	  	 	 	745	  	 	 	827	  	 	 	891	  	 	 	825	  	 	 	1,533	  	 	 	1,602	  	 	 	3,320	  	
Adjusted net realized gains (losses) (1)	 	 	128	  	 	 	(89	) 	 	 	(210	) 	 	 	(165	) 	 	 	(81	) 	 	 	39	  	 	 	(183	) 	 	 	(558	) 	
Net realized gains (losses) related to unconsolidated entities	 	 	33	  	 	 	26	  	 	 	49	  	 	 	55	  	 	 	36	  	 	 	59	  	 	 	87	  	 	 	191	  	
Income tax expense (benefit) on adjusted net realized gains (losses)	 	 	7	  	 	 	1	  	 	 	111	  	 	 	(4	) 	 	 	1	  	 	 	8	  	 	 	(7	) 	 	 	100	  	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Consolidated net income	 	$	942	  	 	$	681	  	 	$	555	  	 	$	785	  	 	$	779	  	 	$	1,623	  	 	$	1,513	  	 	$	2,853	  	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
% Change versus prior year period (1)	 				 				 				 				 				 				 				 				
Net premiums written as reported	 	 	5.5	% 	 	 	-2.9	% 	 	 	2.4	% 	 	 	2.2	% 	 	 	4.0	% 	 	 	1.5	% 	 	 	7.7	% 	 	 	4.9	% 	
Net premiums earned as reported	 	 	0.8	% 	 	 	-1.0	% 	 	 	-0.3	% 	 	 	2.9	% 	 	 	7.1	% 	 	 	0.0	% 	 	 	9.6	% 	 	 	5.1	% 	
Net premiums written constant $	 	 	11.6	% 	 	 	1.7	% 	 	 	5.0	% 	 	 	1.7	% 	 	 	4.5	% 	 	 	6.9	% 	 	 	8.7	% 	 	 	5.9	% 	
Net premiums earned constant $	 	 	7.0	% 	 	 	3.5	% 	 	 	2.1	% 	 	 	2.5	% 	 	 	7.4	% 	 	 	5.4	% 	 	 	10.8	% 	 	 	6.2	% 	
Other ratios	 				 				 				 				 				 				 				 				
Net premiums written/gross premiums written (1)	 	 	72	% 	 	 	75	% 	 	 	73	% 	 	 	74	% 	 	 	74	% 	 	 	73	% 	 	 	75	% 	 	 	74	% 	
Operating effective tax rate	 	 	14.7	% 	 	 	13.7	% 	 	 	12.7	% 	 	 	16.9	% 	 	 	13.7	% 	 	 	14.2	% 	 	 	12.7	% 	 	 	13.9	% 	
P&C combined ratio (1)	 				 				 				 				 				 				 				 				
Loss and loss expense ratio	 	 	58.9	% 	 	 	57.1	% 	 	 	58.6	% 	 	 	58.5	% 	 	 	58.2	% 	 	 	58.0	% 	 	 	58.0	% 	 	 	58.3	% 	
Policy acquisition cost ratio	 	 	15.7	% 	 	 	17.4	% 	 	 	16.6	% 	 	 	16.5	% 	 	 	16.6	% 	 	 	16.5	% 	 	 	17.1	% 	 	 	16.8	% 	
Administrative expense ratio	 	 	13.1	% 	 	 	13.9	% 	 	 	13.3	% 	 	 	11.3	% 	 	 	12.7	% 	 	 	13.5	% 	 	 	13.1	% 	 	 	12.6	% 	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Combined ratio	 	 	87.7	% 	 	 	88.4	% 	 	 	88.5	% 	 	 	86.3	% 	 	 	87.5	% 	 	 	88.0	% 	 	 	88.2	% 	 	 	87.7	% 	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Combined ratio excluding catastrophe losses and PPD	 	 	88.4	% 	 	 	89.3	% 	 	 	89.5	% 	 	 	89.8	% 	 	 	88.7	% 	 	 	88.8	% 	 	 	88.8	% 	 	 	89.3	% 	
P&C expense ratio	 	 	28.8	% 	 	 	31.3	% 	 	 	29.9	% 	 	 	27.8	% 	 	 	29.3	% 	 	 	30.0	% 	 	 	30.2	% 	 	 	29.4	% 	
P&C expense ratio excluding A&H	 	 	25.5	% 	 	 	27.9	% 	 	 	26.7	% 	 	 	24.3	% 	 	 	26.0	% 	 	 	26.6	% 	 	 	26.7	% 	 	 	26.0	% 	
Catastrophe reinstatement premiums collected - pre-tax	 	$	—  	  	 	$	—  	  	 	$	2	  	 	$	1	  	 	$	—  	  	 	$	—  	  	 	$	—  	  	 	$	3	  	
Catastrophe losses - pre-tax	 	$	124	  	 	$	51	  	 	$	71	  	 	$	87	  	 	$	80	  	 	$	175	  	 	$	133	  	 	$	291	  	
Favorable prior period development (PPD) - pre-tax	 	$	(153	) 	 	$	(83	) 	 	$	(107	) 	 	$	(232	) 	 	$	(126	) 	 	$	(236	) 	 	$	(188	) 	 	$	(527	) 	
Loss and loss expense ratio excluding catastrophe losses and PPD	 	 	59.7	% 	 	 	58.1	% 	 	 	59.6	% 	 	 	62.2	% 	 	 	59.4	% 	 	 	58.9	% 	 	 	58.5	% 	 	 	59.8	% 	
 
(1)	See non-GAAP financial measures.	
(2)	Included in Q2 2015 is gross premiums written of $428 million, net premiums written of $252 million, and operating income benefit of $15 million related to the transfer of the Fireman’s Fund in-force business at the time of the transaction that is non-recurring in 2016.	
(3)	Excludes portion of net realized investment gains and losses related to unconsolidated entities.	

Consolidated Results	  	Page 2	

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

													
 	  	June 30	 	 	March 31	 	 	December 31	 	
 	  	2015	 	 	2015	 	 	2014	 	
Assets	  				 				 				
Fixed maturities available for sale, at fair value	  	$	48,701	  	 	$	50,410	  	 	$	49,395	  	
Fixed maturities held to maturity, at amortized cost	  	 	8,676	  	 	 	6,982	  	 	 	7,331	  	
Equity securities, at fair value	  	 	498	  	 	 	536	  	 	 	510	  	
Short-term investments, at fair value	  	 	2,062	  	 	 	2,536	  	 	 	2,322	  	
Other investments	  	 	3,328	  	 	 	3,430	  	 	 	3,346	  	
	  	 	 	 	 	 	 	 	 	 	 	 	
Total investments		 	63,265	  		 	63,894	  		 	62,904	  	
Cash		 	790	  		 	948	  		 	655	  	
Securities lending collateral		 	1,080	  		 	1,033	  		 	1,330	  	
Insurance and reinsurance balances receivable		 	5,757	  		 	5,026	  		 	5,426	  	
Reinsurance recoverable on losses and loss expenses		 	11,775	  		 	11,588	  		 	11,992	  	
Deferred policy acquisition costs		 	2,806	  		 	2,683	  		 	2,601	  	
Value of business acquired		 	434	  		 	440	  		 	466	  	
Prepaid reinsurance premiums		 	2,238	  		 	1,981	  		 	2,026	  	
Goodwill and other intangible assets		 	5,969	  		 	5,516	  		 	5,724	  	
Deferred tax assets		 	285	  		 	224	  		 	295	  	
Investments in partially-owned insurance companies		 	638	  		 	590	  		 	504	  	
Other assets		 	4,803	  		 	4,475	  		 	4,325	  	
	  	 	 	 	 	 	 	 	 	 	 	 	
Total assets		$	99,840	  		$	98,398	  		$	98,248	  	
	  	 	 	 	 	 	 	 	 	 	 	 	
Liabilities													
Unpaid losses and loss expenses		$	38,230	  		$	37,326	  		$	38,315	  	
Unearned premiums		 	8,879	  		 	8,182	  		 	8,222	  	
Future policy benefits		 	4,835	  		 	4,744	  		 	4,754	  	
Insurance and reinsurance balances payable		 	4,602	  		 	4,198	  		 	4,095	  	
Securities lending payable		 	1,081	  		 	1,034	  		 	1,331	  	
Accounts payable, accrued expenses, and other liabilities		 	6,090	  		 	6,194	  		 	5,726	  	
Short-term debt		 	2,102	  		 	2,552	  		 	2,552	  	
Long-term debt		 	4,157	  		 	4,157	  		 	3,357	  	
Trust preferred securities		 	309	  		 	309	  		 	309	  	
	  	 	 	 	 	 	 	 	 	 	 	 	
Total liabilities		 	70,285	  		 	68,696	  		 	68,661	  	
Shareholders’ equity													
Total shareholders’ equity, excl. AOCI		 	28,948	  		 	28,550	  		 	28,396	  	
Accumulated other comprehensive income (AOCI)		 	607	  		 	1,152	  		 	1,191	  	
	  	 	 	 	 	 	 	 	 	 	 	 	
Total shareholders’ equity		 	29,555	  		 	29,702	  		 	29,587	  	
	  	 	 	 	 	 	 	 	 	 	 	 	
Total liabilities and shareholders’ equity		$	99,840	  		$	98,398	  		$	98,248	  	
	  	 	 	 	 	 	 	 	 	 	 	 	
Book value per common share		$	91.27	  		$	90.81	  		$	90.02	  	
% change over prior quarter		 	0.5	% 		 	0.9	% 		 	-0.4	% 	
Tangible book value per common share		$	72.84	  		$	73.94	  		$	72.61	  	
% change over prior quarter		 	-1.5	% 		 	1.8	% 		 	-1.9	% 	

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 $	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Constant $	 	
 	 	 	 	 	 	 	 	% Change	 	 	 	 	 	% Change	 	 	 	 	 	 	 	 	% Change	 	 	Constant $	 	 	% Change	 	
 	 	 	 	 	 	 	 	2Q-15 vs.	 	 	Constant $	 	 	2Q-15 vs.	 	 	YTD	 	 	YTD	 	 	YTD-15 vs.	 	 	YTD-15 vs.	 	 	YTD-15 vs.	 	
 	 	2Q-15	 	 	2Q-14	 	 	2Q-14	 	 	2Q-14 (2)	 	 	2Q-14 (2)	 	 	2015	 	 	2014	 	 	YTD-14	 	 	YTD-14 (2)	 	 	YTD-14 (2)	 	
Net premiums written	 				 				 				 				 				 				 				 				 				 				
Property and all other	 	$	1,688	  	 	$	1,465	  	 	 	15.2	% 	 				 				 	$	3,068	  	 	$	2,837	  	 	 	8.2	% 	 				 				
Casualty	 	 	1,563	  	 	 	1,494	  	 	 	4.7	% 	 				 				 	 	3,042	  	 	 	2,949	  	 	 	3.1	% 	 				 				
	 	 	 	 	 	 	 	 	 				 				 				 	 	 	 	 	 	 	 	 				 				 				
Subtotal	 	 	3,251	  	 	 	2,959	  	 	 	9.9	% 	 	$	2,817	  	 	 	15.4	% 	 	 	6,110	  	 	 	5,786	  	 	 	5.6	% 	 	$	5,532	  	 	 	10.4	% 	
Agriculture	 	 	379	  	 	 	388	  	 	 	-2.4	% 	 	 	388	  	 	 	-2.4	% 	 	 	467	  	 	 	582	  	 	 	-19.8	% 	 	 	582	  	 	 	-19.8	% 	
Personal accident (A&H) (1)	 	 	909	  	 	 	961	  	 	 	-5.2	% 	 	 	873	  	 	 	4.2	% 	 	 	1,799	  	 	 	1,878	  	 	 	-4.2	% 	 	 	1,731	  	 	 	3.9	% 	
Life	 	 	245	  	 	 	251	  	 	 	-2.7	% 	 	 	240	  	 	 	2.4	% 	 	 	484	  	 	 	498	  	 	 	-2.9	% 	 	 	477	  	 	 	1.5	% 	
	 	 	 	 	 	 	 	 	 				 	 	 	 	 				 	 	 	 	 	 	 	 	 				 	 	 	 	 				
Total consolidated	 	$	4,784	  	 	$	4,559	  	 	 	4.9	% 	 	$	4,318	  	 	 	10.8	% 	 	$	8,860	  	 	$	8,744	  	 	 	1.3	% 	 	$	8,322	  	 	 	6.5	% 	
	 	 	 	 	 	 	 	 	 				 	 	 	 	 				 	 	 	 	 	 	 	 	 				 	 	 	 	 				
% of Total Consolidated	 				 				 				 				 				 				 				 				 				 				
Property and all other	 	 	35	% 	 	 	32	% 	 				 				 				 	 	35	% 	 	 	32	% 	 				 				 				
Casualty	 	 	33	% 	 	 	33	% 	 				 				 				 	 	35	% 	 	 	34	% 	 				 				 				
	 	 	 	 	 	 	 	 	 				 				 				 	 	 	 	 	 	 	 	 				 				 				
Subtotal	 	 	68	% 	 	 	65	% 	 				 				 				 	 	70	% 	 	 	66	% 	 				 				 				
Agriculture	 	 	8	% 	 	 	8	% 	 				 				 				 	 	5	% 	 	 	7	% 	 				 				 				
Personal accident (A&H) (1)	 	 	19	% 	 	 	21	% 	 				 				 				 	 	20	% 	 	 	21	% 	 				 				 				
Life	 	 	5	% 	 	 	6	% 	 				 				 				 	 	5	% 	 	 	6	% 	 				 				 				
	 	 	 	 	 	 	 	 	 				 				 				 	 	 	 	 	 	 	 	 				 				 				
Total consolidated	 	 	100	% 	 	 	100	% 	 				 				 				 	 	100	% 	 	 	100	% 	 				 				 				
	 	 	 	 	 	 	 	 	 				 				 				 	 	 	 	 	 	 	 	 				 				 				
Net premiums earned	 				 				 				 				 				 				 				 				 				 				
Property and all other	 	$	1,338	  	 	$	1,282	  	 	 	4.5	% 	 				 				 	$	2,593	  	 	$	2,534	  	 	 	2.4	% 	 				 				
Casualty	 	 	1,588	  	 	 	1,542	  	 	 	3.0	% 	 				 				 	 	3,094	  	 	 	3,022	  	 	 	2.4	% 	 				 				
	 	 	 	 	 	 	 	 	 				 				 				 	 	 	 	 	 	 	 	 				 				 				
Subtotal	 	 	2,926	  	 	 	2,824	  	 	 	3.7	% 	 	$	2,681	  	 	 	9.2	% 	 	 	5,687	  	 	 	5,556	  	 	 	2.4	% 	 	$	5,315	  	 	 	7.0	% 	
Agriculture	 	 	321	  	 	 	330	  	 	 	-2.9	% 	 	 	330	  	 	 	-2.9	% 	 	 	385	  	 	 	433	  	 	 	-11.0	% 	 	 	433	  	 	 	-11.0	% 	
Personal accident (A&H) (1)	 	 	882	  	 	 	934	  	 	 	-5.6	% 	 	 	850	  	 	 	3.8	% 	 	 	1,761	  	 	 	1,828	  	 	 	-3.7	% 	 	 	1,685	  	 	 	4.5	% 	
Life	 	 	231	  	 	 	244	  	 	 	-5.1	% 	 	 	232	  	 	 	-0.1	% 	 	 	454	  	 	 	485	  	 	 	-6.3	% 	 	 	464	  	 	 	-2.1	% 	
	 	 	 	 	 	 	 	 	 				 	 	 	 	 				 	 	 	 	 	 	 	 	 				 	 	 	 	 				
Total consolidated	 	$	4,360	  	 	$	4,332	  	 	 	0.7	% 	 	$	4,093	  	 	 	6.5	% 	 	$	8,287	  	 	$	8,302	  	 	 	-0.2	% 	 	$	7,897	  	 	 	4.9	% 	
	 	 	 	 	 	 	 	 	 				 	 	 	 	 				 	 	 	 	 	 	 	 	 				 	 	 	 	 				
% of Total Consolidated	 				 				 				 				 				 				 				 				 				 				
Property and all other	 	 	31	% 	 	 	29	% 	 				 				 				 	 	31	% 	 	 	31	% 	 				 				 				
Casualty	 	 	37	% 	 	 	36	% 	 				 				 				 	 	38	% 	 	 	36	% 	 				 				 				
	 	 	 	 	 	 	 	 	 				 				 				 	 	 	 	 	 	 	 	 				 				 				
Subtotal	 	 	68	% 	 	 	65	% 	 				 				 				 	 	69	% 	 	 	67	% 	 				 				 				
Agriculture	 	 	7	% 	 	 	7	% 	 				 				 				 	 	5	% 	 	 	5	% 	 				 				 				
Personal accident (A&H) (1)	 	 	20	% 	 	 	22	% 	 				 				 				 	 	21	% 	 	 	22	% 	 				 				 				
Life	 	 	5	% 	 	 	6	% 	 				 				 				 	 	5	% 	 	 	6	% 	 				 				 				
	 	 	 	 	 	 	 	 	 				 				 				 	 	 	 	 	 	 	 	 				 				 				
Total consolidated	 	 	100	% 	 	 	100	% 	 				 				 				 	 	100	% 	 	 	100	% 	 				 				 				
	 	 	 	 	 	 	 	 	 				 				 				 	 	 	 	 	 	 	 	 				 				 				
Operating income (loss), after-tax	 				 				 				 				 				 				 				 				 				 				
Property, casualty, and all other	 	$	616	  	 	$	648	  	 	 	-5.1	% 	 	$	632	  	 	 	-2.5	% 	 	$	1,177	  	 	$	1,293	  	 	 	-9.1	% 	 	$	1,265	  	 	 	-7.0	% 	
Agriculture	 	 	15	  	 	 	19	  	 	 	-21.9	% 	 	 	19	  	 	 	-21.9	% 	 	 	50	  	 	 	(6	) 	 	 	NM	  	 	 	(6	) 	 	 	NM	  	
Personal accident (A&H) (1)	 	 	122	  	 	 	124	  	 	 	-0.9	% 	 	 	112	  	 	 	9.9	% 	 	 	235	  	 	 	238	  	 	 	-1.3	% 	 	 	218	  	 	 	8.0	% 	
Life	 	 	35	  	 	 	34	  	 	 	5.1	% 	 	 	33	  	 	 	5.3	% 	 	 	71	  	 	 	77	  	 	 	-7.0	% 	 	 	76	  	 	 	-6.5	% 	
	 	 	 	 	 	 	 	 	 				 	 	 	 	 				 	 	 	 	 	 	 	 	 				 	 	 	 	 				
Total consolidated	 	$	788	  	 	$	825	  	 	 	-4.5	% 	 	$	796	  	 	 	-0.9	% 	 	$	1,533	  	 	$	1,602	  	 	 	-4.3	% 	 	$	1,553	  	 	 	-1.3	% 	
	 	 	 	 	 	 	 	 	 				 	 	 	 	 				 	 	 	 	 	 	 	 	 				 	 	 	 	 				
% of Total Consolidated	 				 				 				 				 				 				 				 				 				 				
Property, casualty, and all other	 	 	79	% 	 	 	79	% 	 				 				 				 	 	77	% 	 	 	80	% 	 				 				 				
Agriculture	 	 	2	% 	 	 	2	% 	 				 				 				 	 	3	% 	 	 	0	% 	 				 				 				
Personal accident (A&H) (1)	 	 	15	% 	 	 	15	% 	 				 				 				 	 	15	% 	 	 	15	% 	 				 				 				
Life	 	 	4	% 	 	 	4	% 	 				 				 				 	 	5	% 	 	 	5	% 	 				 				 				
	 	 	 	 	 	 	 	 	 				 				 				 	 	 	 	 	 	 	 	 				 				 				
Total consolidated	 	 	100	% 	 	 	100	% 	 				 				 				 	 	100	% 	 	 	100	% 	 				 				 				

(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 7), Insurance – Overseas General segment (refer to page 9), Global Reinsurance segment (refer to page 10), and Corporate (not separately disclosed in the Financial Supplement). Global P&C excludes the Insurance – North American Agriculture segment.
Global P&C (Including Corporate)

 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	YTD	 	 	YTD	 	 	Full Year	 	
 	 	2Q-15	 	 	1Q-15	 	 	4Q-14	 	 	3Q-14	 	 	2Q-14	 	 	2015	 	 	2014	 	 	2014	 	
Gross premiums written (1)	 	$	5,409	  	 	$	4,672	  	 	$	4,891	  	 	$	4,495	  	 	$	4,879	  	 	$	10,081	  	 	$	9,497	  	 	$	18,883	  	
Net premiums written (1)	 	 	3,905	  	 	 	3,497	  	 	 	3,559	  	 	 	3,468	  	 	 	3,673	  	 	 	7,402	  	 	 	7,170	  	 	 	14,197	  	
Net premiums earned	 	 	3,552	  	 	 	3,389	  	 	 	3,544	  	 	 	3,499	  	 	 	3,512	  	 	 	6,941	  	 	 	6,895	  	 	 	13,938	  	
Losses and loss expenses	 	 	2,009	  	 	 	1,948	  	 	 	2,017	  	 	 	1,853	  	 	 	1,955	  	 	 	3,957	  	 	 	3,839	  	 	 	7,709	  	
Policy acquisition costs	 	 	586	  	 	 	604	  	 	 	629	  	 	 	661	  	 	 	614	  	 	 	1,190	  	 	 	1,226	  	 	 	2,516	  	
Administrative expenses	 	 	500	  	 	 	482	  	 	 	513	  	 	 	480	  	 	 	492	  	 	 	982	  	 	 	958	  	 	 	1,951	  	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Underwriting income		 	457	  		 	355	  		 	385	  		 	505	  		 	451	  		 	812	  		 	872	  		 	1,762	  	
Net investment income		 	490	  		 	479	  		 	501	  		 	491	  		 	484	  		 	969	  		 	966	  		 	1,958	  	
Interest expense		 	69	  		 	67	  		 	66	  		 	66	  		 	69	  		 	136	  		 	137	  		 	269	  	
Other income (expense)—operating (2)		 	(48	) 		 	(22	) 		 	(16	) 		 	(22	) 		 	(17	) 		 	(70	) 		 	(32	) 		 	(70	) 	
Income tax expense		 	124	  		 	101	  		 	98	  		 	146	  		 	115	  		 	225	  		 	210	  		 	454	  	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Global P&C operating income (1)		 	706	  		 	644	  		 	706	  		 	762	  		 	734	  		 	1,350	  		 	1,459	  		 	2,927	  	
Net realized gains (losses)		 	25	  		 	(30	) 		 	(67	) 		 	(76	) 		 	(9	) 		 	(5	) 		 	(35	) 		 	(178	) 	
Net realized gains (losses) related to unconsolidated entities		 	16	  		 	12	  		 	43	  		 	51	  		 	38	  		 	28	  		 	91	  		 	185	  	
Income tax expense (benefit) on net realized gains (losses)		 	5	  		 	—  	  		 	110	  		 	(5	) 		 	1	  		 	5	  		 	(4	) 		 	101	  	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Global P&C net income		$	742	  		$	626	  		$	572	  		$	742	  		$	762	  		$	1,368	  		$	1,519	  		$	2,833	  	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
% Change versus prior year period																																	
Net premiums written as reported		 	6.4	% 		 	0.0	% 		 	3.0	% 		 	4.0	% 		 	6.4	% 		 	3.2	% 		 	8.1	% 		 	5.7	% 	
Net premiums earned as reported		 	1.2	% 		 	0.1	% 		 	2.6	% 		 	6.2	% 		 	8.5	% 		 	0.7	% 		 	9.8	% 		 	7.0	% 	
Net premiums written constant $		 	13.2	% 		 	5.0	% 		 	5.8	% 		 	3.4	% 		 	7.0	% 		 	9.2	% 		 	9.2	% 		 	6.9	% 	
Net premiums earned constant $		 	8.0	% 		 	4.8	% 		 	5.4	% 		 	5.7	% 		 	8.8	% 		 	6.4	% 		 	11.0	% 		 	8.2	% 	
Other ratios																																	
Net premiums written/gross premiums written		 	72	% 		 	75	% 		 	73	% 		 	77	% 		 	75	% 		 	73	% 		 	75	% 		 	75	% 	
Combined ratio																																	
Loss and loss expense ratio		 	56.5	% 		 	57.5	% 		 	56.9	% 		 	52.9	% 		 	55.7	% 		 	57.0	% 		 	55.7	% 		 	55.3	% 	
Policy acquisition cost ratio		 	16.5	% 		 	17.8	% 		 	17.8	% 		 	18.9	% 		 	17.5	% 		 	17.1	% 		 	17.8	% 		 	18.0	% 	
Administrative expense ratio		 	14.1	% 		 	14.2	% 		 	14.4	% 		 	13.8	% 		 	13.9	% 		 	14.2	% 		 	13.9	% 		 	14.1	% 	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Combined ratio		 	87.1	% 		 	89.5	% 		 	89.1	% 		 	85.6	% 		 	87.1	% 		 	88.3	% 		 	87.4	% 		 	87.4	% 	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Combined ratio excluding catastrophe losses and PPD		 	88.2	% 		 	89.5	% 		 	90.2	% 		 	89.8	% 		 	88.7	% 		 	88.8	% 		 	88.8	% 		 	89.4	% 	
Expense ratio		 	30.6	% 		 	32.0	% 		 	32.2	% 		 	32.7	% 		 	31.4	% 		 	31.3	% 		 	31.7	% 		 	32.1	% 	
Expense ratio excluding A&H		 	27.4	% 		 	28.7	% 		 	29.2	% 		 	29.3	% 		 	28.2	% 		 	28.0	% 		 	28.3	% 		 	28.8	% 	
Catastrophe reinstatement premiums collected—pre-tax		$	—  	  		$	—  	  		$	2	  		$	1	  		$	—  	  		$	—  	  		$	—  	  		$	3	  	
Catastrophe losses—pre-tax		$	117	  		$	50	  		$	70	  		$	85	  		$	71	  		$	167	  		$	123	  		$	278	  	
Favorable prior period development (PPD)—pre-tax		$	(153	) 		$	(50	) 		$	(106	) 		$	(229	) 		$	(126	) 		$	(203	) 		$	(226	) 		$	(561	) 	
Loss and loss expense ratio excluding catastrophe losses and PPD		 	57.6	% 		 	57.6	% 		 	57.9	% 		 	57.5	% 		 	57.3	% 		 	57.6	% 		 	57.2	% 		 	57.5	% 	
 
(1)	Included in Q2 2015 is gross premiums written of $428 million, net premiums written of $252 million, and operating income benefit of $15 million related to the transfer of the Fireman’s Fund in-force business at the time of the transaction that is non-recurring in 2016.	
(2)	Excludes portion of net realized investment gains and losses related to unconsolidated entities.	

Global P&C		Page 5	

					
		ACE Limited
Insurance - North American
(in millions of U.S. dollars, except ratios)
(Unaudited)			
 
The table below combines the company’s Insurance – North American P&C segment (refer to page 7) and Insurance – North American Agriculture segment (refer to page 8) into total Insurance – North American business presentation for reference purposes only.
Insurance - North American

 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	YTD	 	 	YTD	 	 	Full Year	 	
 	 	2Q-15	 	 	1Q-15	 	 	4Q-14	 	 	3Q-14	 	 	2Q-14	 	 	2015	 	 	2014	 	 	2014	 	
Gross premiums written	 	$	3,471	  	 	$	2,253	  	 	$	2,841	  	 	$	3,367	  	 	$	2,948	  	 	$	5,724	  	 	$	5,206	  	 	$	11,414	  	
Net premiums written	 	 	2,354	  	 	 	1,518	  	 	 	1,913	  	 	 	2,305	  	 	 	2,023	  	 	 	3,872	  	 	 	3,635	  	 	 	7,853	  	
Net premiums earned	 	 	2,009	  	 	 	1,590	  	 	 	1,887	  	 	 	2,284	  	 	 	1,872	  	 	 	3,599	  	 	 	3,462	  	 	 	7,633	  	
Losses and loss expenses (1)	 	 	1,393	  	 	 	1,057	  	 	 	1,329	  	 	 	1,694	  	 	 	1,295	  	 	 	2,450	  	 	 	2,363	  	 	 	5,386	  	
Policy acquisition costs	 	 	153	  	 	 	157	  	 	 	166	  	 	 	210	  	 	 	175	  	 	 	310	  	 	 	339	  	 	 	715	  	
Administrative expenses	 	 	193	  	 	 	170	  	 	 	181	  	 	 	168	  	 	 	176	  	 	 	363	  	 	 	338	  	 	 	687	  	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Underwriting income		 	270	  		 	206	  		 	211	  		 	212	  		 	226	  		 	476	  		 	422	  		 	845	  	
Net investment income		 	275	  		 	269	  		 	280	  		 	283	  		 	271	  		 	544	  		 	548	  		 	1,111	  	
Interest expense		 	2	  		 	2	  		 	2	  		 	2	  		 	2	  		 	4	  		 	5	  		 	9	  	
Other income (expense)—operating		 	(41	) 		 	(5	) 		 	(2	) 		 	(8	) 		 	(4	) 		 	(46	) 		 	(12	) 		 	(22	) 	
Income tax expense		 	92	  		 	88	  		 	70	  		 	91	  		 	94	  		 	180	  		 	170	  		 	331	  	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Operating income		 	410	  		 	380	  		 	417	  		 	394	  		 	397	  		 	790	  		 	783	  		 	1,594	  	
Net realized gains (losses) (1)		 	—  	  		 	(6	) 		 	(39	) 		 	(5	) 		 	(11	) 		 	(6	) 		 	(20	) 		 	(64	) 	
Net realized gains (losses) related to unconsolidated entities		 	10	  		 	4	  		 	19	  		 	32	  		 	19	  		 	14	  		 	39	  		 	90	  	
Income tax expense on net realized gains (losses)		 	1	  		 	2	  		 	1	  		 	5	  		 	2	  		 	3	  		 	2	  		 	8	  	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income		$	419	  		$	376	  		$	396	  		$	416	  		$	403	  		$	795	  		$	800	  		$	1,612	  	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Combined ratio																																	
Loss and loss expense ratio		 	69.3	% 		 	66.5	% 		 	70.4	% 		 	74.1	% 		 	69.2	% 		 	68.1	% 		 	68.3	% 		 	70.6	% 	
Policy acquisition cost ratio		 	7.6	% 		 	9.8	% 		 	8.8	% 		 	9.2	% 		 	9.3	% 		 	8.6	% 		 	9.8	% 		 	9.4	% 	
Administrative expense ratio		 	9.7	% 		 	10.7	% 		 	9.6	% 		 	7.4	% 		 	9.4	% 		 	10.1	% 		 	9.7	% 		 	8.9	% 	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Combined ratio		 	86.6	% 		 	87.0	% 		 	88.8	% 		 	90.7	% 		 	87.9	% 		 	86.8	% 		 	87.8	% 		 	88.9	% 	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Combined ratio excluding catastrophe losses and PPD		 	86.0	% 		 	87.4	% 		 	87.9	% 		 	88.9	% 		 	87.6	% 		 	86.7	% 		 	87.4	% 		 	88.0	% 	
Catastrophe reinstatement premiums expensed—pre-tax		$	—  	  		$	—  	  		$	—  	  		$	—  	  		$	—  	  		$	—  	  		$	—  	  		$	—  	  	
Catastrophe losses—pre-tax		$	61	  		$	46	  		$	30	  		$	37	  		$	45	  		$	107	  		$	78	  		$	145	  	
Unfavorable (favorable) prior period development (PPD)—pre-tax		$	(49	) 		$	(54	) 		$	(12	) 		$	8	  		$	(39	) 		$	(103	) 		$	(69	) 		$	(73	) 	
Loss and loss expense ratio excluding catastrophe losses and PPD		 	68.8	% 		 	67.1	% 		 	69.6	% 		 	72.5	% 		 	68.9	% 		 	68.0	% 		 	67.7	% 		 	69.6	% 	
% Change versus prior year period																																	
Net premiums written		 	16.4	% 		 	-5.9	% 		 	3.0	% 		 	-0.1	% 		 	2.1	% 		 	6.5	% 		 	7.6	% 		 	4.1	% 	
Net premiums earned		 	7.4	% 		 	0.0	% 		 	-2.6	% 		 	-0.4	% 		 	5.2	% 		 	4.0	% 		 	9.2	% 		 	3.2	% 	
Other ratios																																	
Net premiums written/gross premiums written		 	68	% 		 	67	% 		 	67	% 		 	68	% 		 	69	% 		 	68	% 		 	70	% 		 	69	% 	
 
(1)	See non-GAAP financial measures.	

Insurance - North American		Page 6	

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

 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	YTD	 	 	YTD	 	 	Full Year	 	
 	 	2Q-15	 	 	1Q-15	 	 	4Q-14	 	 	3Q-14	 	 	2Q-14	 	 	2015	 	 	2014	 	 	2014	 	
Gross premiums written (1)	 	$	2,905	  	 	$	2,125	  	 	$	2,539	  	 	$	2,126	  	 	$	2,347	  	 	$	5,030	  	 	$	4,371	  	 	$	9,036	  	
Net premiums written (1)	 	 	1,975	  	 	 	1,430	  	 	 	1,669	  	 	 	1,541	  	 	 	1,635	  	 	 	3,405	  	 	 	3,053	  	 	 	6,263	  	
Net premiums earned	 	 	1,688	  	 	 	1,526	  	 	 	1,560	  	 	 	1,518	  	 	 	1,542	  	 	 	3,214	  	 	 	3,029	  	 	 	6,107	  	
Losses and loss expenses	 	 	1,120	  	 	 	1,035	  	 	 	1,077	  	 	 	1,053	  	 	 	1,016	  	 	 	2,155	  	 	 	1,956	  	 	 	4,086	  	
Policy acquisition costs	 	 	130	  	 	 	161	  	 	 	154	  	 	 	169	  	 	 	152	  	 	 	291	  	 	 	311	  	 	 	634	  	
Administrative expenses	 	 	189	  	 	 	171	  	 	 	177	  	 	 	165	  	 	 	175	  	 	 	360	  	 	 	336	  	 	 	678	  	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Underwriting income (1)		 	249	  		 	159	  		 	152	  		 	131	  		 	199	  		 	408	  		 	426	  		 	709	  	
Net investment income		 	269	  		 	263	  		 	273	  		 	277	  		 	265	  		 	532	  		 	535	  		 	1,085	  	
Interest expense		 	2	  		 	2	  		 	2	  		 	2	  		 	2	  		 	4	  		 	5	  		 	9	  	
Other income (expense)—operating		 	(33	) 		 	3	  		 	7	  		 	(1	) 		 	5	  		 	(30	) 		 	5	  		 	11	  	
Income tax expense		 	88	  		 	78	  		 	58	  		 	68	  		 	89	  		 	166	  		 	172	  		 	298	  	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Operating income (1)		 	395	  		 	345	  		 	372	  		 	337	  		 	378	  		 	740	  		 	789	  		 	1,498	  	
Net realized gains (losses)		 	—  	  		 	(6	) 		 	(42	) 		 	(5	) 		 	(11	) 		 	(6	) 		 	(20	) 		 	(67	) 	
Net realized gains (losses) related to unconsolidated entities		 	10	  		 	4	  		 	19	  		 	32	  		 	19	  		 	14	  		 	39	  		 	90	  	
Income tax expense on net realized gains (losses)		 	1	  		 	2	  		 	1	  		 	5	  		 	2	  		 	3	  		 	2	  		 	8	  	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income		$	404	  		$	341	  		$	348	  		$	359	  		$	384	  		$	745	  		$	806	  		$	1,513	  	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Combined ratio																																	
Loss and loss expense ratio		 	66.3	% 		 	67.9	% 		 	69.0	% 		 	69.3	% 		 	66.0	% 		 	67.0	% 		 	64.6	% 		 	66.9	% 	
Policy acquisition cost ratio		 	7.7	% 		 	10.5	% 		 	9.9	% 		 	11.1	% 		 	9.8	% 		 	9.1	% 		 	10.3	% 		 	10.4	% 	
Administrative expense ratio		 	11.2	% 		 	11.2	% 		 	11.3	% 		 	11.0	% 		 	11.3	% 		 	11.2	% 		 	11.0	% 		 	11.1	% 	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Combined ratio		 	85.2	% 		 	89.6	% 		 	90.2	% 		 	91.4	% 		 	87.1	% 		 	87.3	% 		 	85.9	% 		 	88.4	% 	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Combined ratio excluding catastrophe losses and PPD		 	85.0	% 		 	87.9	% 		 	89.1	% 		 	88.5	% 		 	87.3	% 		 	86.4	% 		 	87.2	% 		 	88.0	% 	
Catastrophe reinstatement premiums expensed—pre-tax		$	—  	  		$	—  	  		$	—  	  		$	—  	  		$	—  	  		$	—  	  		$	—  	  		$	—  	  	
Catastrophe losses—pre-tax		$	54	  		$	45	  		$	29	  		$	35	  		$	36	  		$	99	  		$	68	  		$	132	  	
Unfavorable (favorable) prior period development (PPD)—pre-tax		$	(49	) 		$	(21	) 		$	(11	) 		$	11	  		$	(39	) 		$	(70	) 		$	(107	) 		$	(107	) 	
Loss and loss expense ratio excluding catastrophe losses and PPD		 	66.1	% 		 	66.3	% 		 	67.8	% 		 	66.9	% 		 	66.2	% 		 	66.2	% 		 	65.9	% 		 	66.6	% 	
% Change versus prior year period																																	
Net premiums written		 	20.8	% 		 	0.8	% 		 	4.2	% 		 	2.7	% 		 	6.9	% 		 	11.5	% 		 	8.5	% 		 	5.9	% 	
Net premiums earned		 	9.6	% 		 	2.5	% 		 	3.3	% 		 	5.1	% 		 	7.9	% 		 	6.2	% 		 	9.5	% 		 	6.8	% 	
Other ratios																																	
Net premiums written/gross premiums written		 	68	% 		 	67	% 		 	66	% 		 	72	% 		 	70	% 		 	68	% 		 	70	% 		 	69	% 	
 
(1)	Included in Q2 2015 is gross premiums written of $428 million, net premiums written of $252 million, underwriting income benefit of $49 million, and operating income benefit of $15 million related to the transfer of the Fireman’s Fund in-force business at the time of the transaction that is non-recurring in 2016. For Q2 2015, excluding the non-recurring benefit, underwriting income and operating income were $200 million and $380 million, respectively.	

Insurance - North American P&C		Page 7	

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

 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	YTD	 	 	YTD	 	 	Full Year	 	
 	 	2Q-15	 	 	1Q-15	 	 	4Q-14	 	 	3Q-14	 	 	2Q-14	 	 	2015	 	 	2014	 	 	2014	 	
Gross premiums written	 	$	566	  	 	$	128	  	 	$	302	  	 	$	1,241	  	 	$	601	  	 	$	694	  	 	$	835	  	 	$	2,378	  	
Net premiums written	 	 	379	  	 	 	88	  	 	 	244	  	 	 	764	  	 	 	388	  	 	 	467	  	 	 	582	  	 	 	1,590	  	
Net premiums earned	 	 	321	  	 	 	64	  	 	 	327	  	 	 	766	  	 	 	330	  	 	 	385	  	 	 	433	  	 	 	1,526	  	
Losses and loss expenses (1)	 	 	273	  	 	 	22	  	 	 	252	  	 	 	641	  	 	 	279	  	 	 	295	  	 	 	407	  	 	 	1,300	  	
Policy acquisition costs	 	 	23	  	 	 	(4	) 	 	 	12	  	 	 	41	  	 	 	23	  	 	 	19	  	 	 	28	  	 	 	81	  	
Administrative expenses	 	 	4	  	 	 	(1	) 	 	 	4	  	 	 	3	  	 	 	1	  	 	 	3	  	 	 	2	  	 	 	9	  	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Underwriting income (loss)	 	 	21	  	 	 	47	  	 	 	59	  	 	 	81	  	 	 	27	  	 	 	68	  	 	 	(4	) 	 	 	136	  	
Net investment income	 	 	6	  	 	 	6	  	 	 	7	  	 	 	6	  	 	 	6	  	 	 	12	  	 	 	13	  	 	 	26	  	
Interest expense	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	
Other income (expense)—operating	 	 	(8	) 	 	 	(8	) 	 	 	(9	) 	 	 	(7	) 	 	 	(9	) 	 	 	(16	) 	 	 	(17	) 	 	 	(33	) 	
Income tax expense (benefit)	 	 	4	  	 	 	10	  	 	 	12	  	 	 	23	  	 	 	5	  	 	 	14	  	 	 	(2	) 	 	 	33	  	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Operating income (loss)	 	 	15	  	 	 	35	  	 	 	45	  	 	 	57	  	 	 	19	  	 	 	50	  	 	 	(6	) 	 	 	96	  	
Net realized gains (losses) (1)	 	 	—  	  	 	 	—  	  	 	 	3	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	3	  	
Net realized gains (losses) related to unconsolidated entities	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	
Income tax expense on net realized gains (losses)	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income (loss)	 	$	15	  	 	$	35	  	 	$	48	  	 	$	57	  	 	$	19	  	 	$	50	  	 	$	(6	) 	 	$	99	  	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Combined ratio	 				 				 				 				 				 				 				 				
Loss and loss expense ratio	 	 	85.3	% 	 	 	33.3	% 	 	 	77.2	% 	 	 	83.7	% 	 	 	84.4	% 	 	 	76.6	% 	 	 	93.9	% 	 	 	85.2	% 	
Policy acquisition cost ratio	 	 	7.2	% 	 	 	-6.0	% 	 	 	3.6	% 	 	 	5.4	% 	 	 	7.0	% 	 	 	5.0	% 	 	 	6.4	% 	 	 	5.3	% 	
Administrative expense ratio	 	 	1.1	% 	 	 	-0.9	% 	 	 	1.0	% 	 	 	0.4	% 	 	 	0.4	% 	 	 	0.7	% 	 	 	0.6	% 	 	 	0.6	% 	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Combined ratio	 	 	93.6	% 	 	 	26.4	% 	 	 	81.8	% 	 	 	89.5	% 	 	 	91.8	% 	 	 	82.3	% 	 	 	100.9	% 	 	 	91.1	% 	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Combined ratio excluding catastrophe losses and PPD	 	 	91.4	% 	 	 	76.7	% 	 	 	82.4	% 	 	 	89.6	% 	 	 	89.1	% 	 	 	88.9	% 	 	 	89.1	% 	 	 	87.8	% 	
Catastrophe reinstatement premiums—pre-tax	 	$	—  	  	 	$	—  	  	 	$	—  	  	 	$	—  	  	 	$	—  	  	 	$	—  	  	 	$	—  	  	 	$	—  	  	
Catastrophe losses—pre-tax	 	$	7	  	 	$	1	  	 	$	1	  	 	$	2	  	 	$	9	  	 	$	8	  	 	$	10	  	 	$	13	  	
Unfavorable (favorable) prior period development (PPD)—pre-tax	 	$	—  	  	 	$	(33	) 	 	$	(1	) 	 	$	(3	) 	 	$	—  	  	 	$	(33	) 	 	$	38	  	 	$	34	  	
Loss and loss expense ratio excluding catastrophe losses and PPD	 	 	83.1	% 	 	 	83.2	% 	 	 	77.9	% 	 	 	83.8	% 	 	 	81.8	% 	 	 	83.1	% 	 	 	81.2	% 	 	 	81.8	% 	
% Change versus prior year period	 				 				 				 				 				 				 				 				
Net premiums written	 	 	-2.4	% 	 	 	-54.6	% 	 	 	-5.0	% 	 	 	-5.2	% 	 	 	-14.2	% 	 	 	-19.8	% 	 	 	3.0	% 	 	 	-2.3	% 	
Net premiums earned	 	 	-2.9	% 	 	 	-37.2	% 	 	 	-23.4	% 	 	 	-9.8	% 	 	 	-5.7	% 	 	 	-11.0	% 	 	 	7.6	% 	 	 	-9.1	% 	
Other ratios	 				 				 				 				 				 				 				 				
Net premiums written/gross premiums written	 	 	67	% 	 	 	69	% 	 	 	81	% 	 	 	62	% 	 	 	65	% 	 	 	67	% 	 	 	70	% 	 	 	67	% 	
 
(1)	See non-GAAP financial measures for treatment of losses and loss expenses in the P&C combined ratio.	

Insurance - North American Agriculture	  	Page 8	

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

 	 	2Q-15	 	 	1Q-15	 	 	4Q-14	 	 	3Q-14	 	 	2Q-14	 	 	Constant $
2Q-14  (1)	 	 	YTD
2015	 	 	YTD
2014	 	 	Full Year
2014	 	
Gross premiums written	 	$	2,212	  	 	$	2,255	  	 	$	2,212	  	 	$	2,156	  	 	$	2,224	  	 	$	1,973	  	 	$	4,467	  	 	$	4,485	  	 	$	8,853	  	
Net premiums written	 	 	1,669	  	 	 	1,794	  	 	 	1,749	  	 	 	1,719	  	 	 	1,760	  	 	 	1,553	  	 	 	3,463	  	 	 	3,531	  	 	 	6,999	  	
Net premiums earned	 	 	1,644	  	 	 	1,637	  	 	 	1,758	  	 	 	1,726	  	 	 	1,709	  	 	 	1,502	  	 	 	3,281	  	 	 	3,321	  	 	 	6,805	  	
Losses and loss expenses	 	 	816	  	 	 	814	  	 	 	835	  	 	 	707	  	 	 	830	  	 	 	728	  	 	 	1,630	  	 	 	1,647	  	 	 	3,189	  	
Policy acquisition costs	 	 	396	  	 	 	389	  	 	 	419	  	 	 	418	  	 	 	402	  	 	 	350	  	 	 	785	  	 	 	788	  	 	 	1,625	  	
Administrative expenses	 	 	254	  	 	 	256	  	 	 	262	  	 	 	258	  	 	 	256	  	 	 	226	  	 	 	510	  	 	 	506	  	 	 	1,026	  	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Underwriting income		 	178	  		 	178	  		 	242	  		 	343	  		 	221	  		 	198	  		 	356	  		 	380	  		 	965	  	
Net investment income		 	139	  		 	138	  		 	147	  		 	130	  		 	136	  		 	127	  		 	277	  		 	268	  		 	545	  	
Interest expense		 	1	  		 	1	  		 	2	  		 	2	  		 	1	  		 	1	  		 	2	  		 	2	  		 	6	  	
Other income (expense)—operating		 	(11	) 		 	(21	) 		 	(15	) 		 	(15	) 		 	(17	) 		 	(15	) 		 	(32	) 		 	(26	) 		 	(56	) 	
Income tax expense		 	65	  		 	53	  		 	78	  		 	108	  		 	57	  		 	53	  		 	118	  		 	99	  		 	285	  	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Operating income		 	240	  		 	241	  		 	294	  		 	348	  		 	282	  		 	256	  		 	481	  		 	521	  		 	1,163	  	
Net realized gains (losses)		 	13	  		 	(10	) 		 	(7	) 		 	(75	) 		 	14	  						 	3	  		 	4	  		 	(78	) 	
Net realized gains (losses) related to unconsolidated entities		 	3	  		 	4	  		 	12	  		 	9	  		 	9	  						 	7	  		 	24	  		 	45	  	
Income tax expense (benefit) on net realized gains (losses)		 	4	  		 	(1	) 		 	111	  		 	(11	) 		 	(2	) 						 	3	  		 	(7	) 		 	93	  	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 				 	 	 	 	 	 	 	 	 	 	 	 	
Net income		$	252	  		$	236	  		$	188	  		$	293	  		$	307	  						$	488	  		$	556	  		$	1,037	  	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 				 	 	 	 	 	 	 	 	 	 	 	 	
Combined ratio																																					
Loss and loss expense ratio		 	49.7	% 		 	49.7	% 		 	47.5	% 		 	40.9	% 		 	48.6	% 						 	49.7	% 		 	49.6	% 		 	46.9	% 	
Policy acquisition cost ratio		 	24.1	% 		 	23.8	% 		 	23.8	% 		 	24.3	% 		 	23.5	% 						 	23.9	% 		 	23.7	% 		 	23.9	% 	
Administrative expense ratio		 	15.4	% 		 	15.6	% 		 	15.0	% 		 	14.9	% 		 	15.0	% 						 	15.5	% 		 	15.3	% 		 	15.0	% 	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 				 	 	 	 	 	 	 	 	 	 	 	 	
Combined ratio		 	89.2	% 		 	89.1	% 		 	86.3	% 		 	80.1	% 		 	87.1	% 						 	89.1	% 		 	88.6	% 		 	85.8	% 	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 				 	 	 	 	 	 	 	 	 	 	 	 	
Combined ratio excluding catastrophe losses and PPD		 	89.8	% 		 	90.3	% 		 	89.4	% 		 	90.5	% 		 	89.3	% 						 	90.1	% 		 	89.9	% 		 	89.9	% 	
Catastrophe reinstatement premiums—pre-tax		$	—  	  		$	—  	  		$	—  	  		$	—  	  		$	—  	  						$	—  	  		$	—  	  		$	—  	  	
Catastrophe losses - pre-tax		$	58	  		$	5	  		$	30	  		$	39	  		$	26	  						$	63	  		$	43	  		$	112	  	
Favorable prior period development (PPD)—pre-tax		$	(68	) 		$	(24	) 		$	(86	) 		$	(219	) 		$	(63	) 						$	(92	) 		$	(86	) 		$	(391	) 	
Loss and loss expense ratio excluding catastrophe losses and PPD		 	50.3	% 		 	50.9	% 		 	50.7	% 		 	51.3	% 		 	50.8	% 						 	50.6	% 		 	50.9	% 		 	51.0	% 	
% Change versus prior year period																																					
Net premiums written as reported		 	-5.1	% 		 	1.3	% 		 	3.0	% 		 	9.4	% 		 	8.0	% 						 	-1.9	% 		 	8.7	% 		 	7.4	% 	
Net premiums earned as reported		 	-3.9	% 		 	1.6	% 		 	3.4	% 		 	7.2	% 		 	9.4	% 						 	-1.2	% 		 	9.9	% 		 	7.5	% 	
Net premiums written constant $		 	7.6	% 		 	11.0	% 		 	8.4	% 		 	8.1	% 		 	8.8	% 						 	9.3	% 		 	10.5	% 		 	9.4	% 	
Net premiums earned constant $		 	9.4	% 		 	11.2	% 		 	8.8	% 		 	6.0	% 		 	9.8	% 						 	10.3	% 		 	12.1	% 		 	9.6	% 	
Other ratios																																					
Net premiums written/gross premiums written		 	75	% 		 	80	% 		 	79	% 		 	80	% 		 	79	% 						 	78	% 		 	79	% 		 	79	% 	
 
(1)	Prior periods on a constant dollar basis.	

Insurance - Overseas General		Page 9	

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

 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	YTD	 	 	YTD	 	 	Full Year	 	
 	 	2Q-15	 	 	1Q-15	 	 	4Q-14	 	 	3Q-14	 	 	2Q-14	 	 	2015	 	 	2014	 	 	2014	 	
Gross premiums written	 	$	292	  	 	$	292	  	 	$	140	  	 	$	213	  	 	$	308	  	 	$	584	  	 	$	641	  	 	$	994	  	
Net premiums written	 	 	261	  	 	 	273	  	 	 	141	  	 	 	208	  	 	 	278	  	 	 	534	  	 	 	586	  	 	 	935	  	
Net premiums earned	 	 	220	  	 	 	226	  	 	 	226	  	 	 	255	  	 	 	261	  	 	 	446	  	 	 	545	  	 	 	1,026	  	
Losses and loss expenses	 	 	72	  	 	 	99	  	 	 	104	  	 	 	92	  	 	 	109	  	 	 	171	  	 	 	235	  	 	 	431	  	
Policy acquisition costs	 	 	60	  	 	 	54	  	 	 	56	  	 	 	74	  	 	 	60	  	 	 	114	  	 	 	127	  	 	 	257	  	
Administrative expenses	 	 	13	  	 	 	12	  	 	 	13	  	 	 	13	  	 	 	14	  	 	 	25	  	 	 	28	  	 	 	54	  	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Underwriting income		 	75	  		 	61	  		 	53	  		 	76	  		 	78	  		 	136	  		 	155	  		 	284	  	
Net investment income		 	79	  		 	75	  		 	78	  		 	81	  		 	80	  		 	154	  		 	157	  		 	316	  	
Interest expense		 	1	  		 	1	  		 	—  	  		 	1	  		 	2	  		 	2	  		 	3	  		 	4	  	
Other income (expense)—operating		 	—  	  		 	1	  		 	3	  		 	—  	  		 	—  	  		 	1	  		 	1	  		 	4	  	
Income tax expense		 	8	  		 	8	  		 	7	  		 	11	  		 	10	  		 	16	  		 	20	  		 	38	  	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Operating income		 	145	  		 	128	  		 	127	  		 	145	  		 	146	  		 	273	  		 	290	  		 	562	  	
Net realized gains (losses)		 	5	  		 	(11	) 		 	(12	) 		 	6	  		 	(15	) 		 	(6	) 		 	(23	) 		 	(29	) 	
Net realized gains (losses) related to unconsolidated entities		 	3	  		 	4	  		 	12	  		 	10	  		 	10	  		 	7	  		 	28	  		 	50	  	
Income tax expense on net realized gains (losses)		 	(1	) 		 	—  	  		 	—  	  		 	—  	  		 	—  	  		 	(1	) 		 	—  	  		 	—  	  	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income		$	154	  		$	121	  		$	127	  		$	161	  		$	141	  		$	275	  		$	295	  		$	583	  	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Combined ratio																																	
Loss and loss expense ratio		 	32.9	% 		 	43.6	% 		 	45.8	% 		 	36.2	% 		 	41.7	% 		 	38.3	% 		 	43.1	% 		 	42.0	% 	
Policy acquisition cost ratio		 	27.2	% 		 	24.0	% 		 	25.0	% 		 	28.8	% 		 	23.1	% 		 	25.6	% 		 	23.3	% 		 	25.0	% 	
Administrative expense ratio		 	5.6	% 		 	5.6	% 		 	5.7	% 		 	5.2	% 		 	5.1	% 		 	5.6	% 		 	5.1	% 		 	5.3	% 	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Combined ratio		 	65.7	% 		 	73.2	% 		 	76.5	% 		 	70.2	% 		 	69.9	% 		 	69.5	% 		 	71.5	% 		 	72.3	% 	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Combined ratio excluding catastrophe losses and PPD		 	79.6	% 		 	75.5	% 		 	76.2	% 		 	75.7	% 		 	75.4	% 		 	77.5	% 		 	75.2	% 		 	75.6	% 	
Catastrophe reinstatement premiums collected—pre-tax		$	—  	  		$	—  	  		$	2	  		$	1	  		$	—  	  		$	—  	  		$	—  	  		$	3	  	
Catastrophe losses—pre-tax		$	5	  		$	—  	  		$	11	  		$	11	  		$	9	  		$	5	  		$	12	  		$	34	  	
Favorable prior period development (PPD)—pre-tax		$	(36	) 		$	(5	) 		$	(9	) 		$	(21	) 		$	(24	) 		$	(41	) 		$	(33	) 		$	(63	) 	
Loss and loss expense ratio excluding catastrophe losses and PPD		 	46.7	% 		 	46.0	% 		 	45.4	% 		 	42.8	% 		 	47.2	% 		 	46.3	% 		 	46.8	% 		 	45.5	% 	
% Change versus prior year period																																	
Net premiums written as reported		 	-5.9	% 		 	-11.4	% 		 	-9.4	% 		 	-21.2	% 		 	-4.9	% 		 	-8.8	% 		 	2.5	% 		 	-5.7	% 	
Net premiums earned as reported		 	-15.5	% 		 	-20.6	% 		 	-7.7	% 		 	6.3	% 		 	6.1	% 		 	-18.1	% 		 	10.8	% 		 	5.1	% 	
Net premiums written constant $		 	-3.9	% 		 	-9.1	% 		 	-8.8	% 		 	-21.8	% 		 	-5.0	% 		 	-6.6	% 		 	2.5	% 		 	-5.8	% 	
Net premiums earned constant $		 	-13.2	% 		 	-19.0	% 		 	-7.1	% 		 	5.7	% 		 	5.5	% 		 	-16.3	% 		 	10.4	% 		 	4.9	% 	
Other ratios																																	
Net premiums written/gross premiums written		 	90	% 		 	93	% 		 	100	% 		 	98	% 		 	90	% 		 	92	% 		 	91	% 		 	94	% 	

Global Reinsurance		Page 10	

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

Life

 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	YTD	 	 	YTD	 	 	Full Year	 	
 	 	2Q-15	 	 	1Q-15	 	 	4Q-14	 	 	3Q-14	 	 	2Q-14	 	 	2015	 	 	2014	 	 	2014	 	
Gross premiums written	 	$	529	  	 	$	522	  	 	$	553	  	 	$	528	  	 	$	526	  	 	$	1,051	  	 	$	1,048	  	 	$	2,129	  	
Net premiums written	 	 	500	  	 	 	491	  	 	 	523	  	 	 	497	  	 	 	498	  	 	 	991	  	 	 	992	  	 	 	2,012	  	
Net premiums earned	 	 	487	  	 	 	474	  	 	 	499	  	 	 	489	  	 	 	490	  	 	 	961	  	 	 	974	  	 	 	1,962	  	
Losses and loss expenses	 	 	137	  	 	 	152	  	 	 	147	  	 	 	145	  	 	 	146	  	 	 	289	  	 	 	297	  	 	 	589	  	
Policy benefits (1)	 	 	153	  	 	 	142	  	 	 	134	  	 	 	125	  	 	 	144	  	 	 	295	  	 	 	258	  	 	 	517	  	
(Gains) losses from fair value changes in separate account assets (1)	 	 	(6	) 	 	 	(11	) 	 	 	3	  	 	 	6	  	 	 	(17	) 	 	 	(17	) 	 	 	(11	) 	 	 	(2	) 	
Policy acquisition costs	 	 	118	  	 	 	107	  	 	 	123	  	 	 	123	  	 	 	121	  	 	 	225	  	 	 	232	  	 	 	478	  	
Administrative expenses	 	 	74	  	 	 	73	  	 	 	73	  	 	 	71	  	 	 	73	  	 	 	147	  	 	 	141	  	 	 	285	  	
Net investment income	 	 	66	  	 	 	66	  	 	 	69	  	 	 	69	  	 	 	66	  	 	 	132	  	 	 	130	  	 	 	268	  	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Life underwriting income (2)		 	77	  		 	77	  		 	88	  		 	88	  		 	89	  		 	154	  		 	187	  		 	363	  	
Interest expense		 	2	  		 	1	  		 	1	  		 	4	  		 	3	  		 	3	  		 	6	  		 	11	  	
Other income (expense) - operating (1)		 	—  	  		 	(2	) 		 	—  	  		 	(1	) 		 	(2	) 		 	(2	) 		 	(7	) 		 	(8	) 	
Income tax expense		 	8	  		 	8	  		 	11	  		 	11	  		 	12	  		 	16	  		 	25	  		 	47	  	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Operating income		 	67	  		 	66	  		 	76	  		 	72	  		 	72	  		 	133	  		 	149	  		 	297	  	
Net realized gains (losses):																																	
Mark-to-market on guaranteed living benefits derivative (net of related hedges)		 	102	  		 	(57	) 		 	(153	) 		 	(95	) 		 	(70	) 		 	45	  		 	(137	) 		 	(385	) 	
Foreign exchange gains (losses) and all other		 	1	  		 	(2	) 		 	7	  		 	6	  		 	(2	) 		 	(1	) 		 	(11	) 		 	2	  	
Net realized gains (losses) related to unconsolidated entities		 	17	  		 	14	  		 	6	  		 	4	  		 	(2	) 		 	31	  		 	(4	) 		 	6	  	
Income tax expense (benefit) on net realized gains (losses)		 	2	  		 	1	  		 	1	  		 	1	  		 	—  	  		 	3	  		 	(3	) 		 	(1	) 	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income (loss)		$	185	  		$	20	  		$	(65	) 		$	(14	) 		$	(2	) 		$	205	  		$	—  	  		$	(79	) 	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
% Change versus prior year period																																	
Net premiums written as reported		 	0.3	% 		 	-0.6	% 		 	4.0	% 		 	3.8	% 		 	2.2	% 		 	-0.1	% 		 	0.2	% 		 	2.0	% 	
Net premiums earned as reported		 	-0.8	% 		 	-1.9	% 		 	3.6	% 		 	4.8	% 		 	2.2	% 		 	-1.4	% 		 	1.8	% 		 	3.0	% 	
Net premiums written constant $ (3)		 	4.1	% 		 	2.4	% 		 	6.2	% 		 	4.4	% 		 	4.4	% 		 	3.3	% 		 	2.7	% 		 	4.0	% 	
Net premiums earned constant $		 	3.0	% 		 	0.9	% 		 	5.9	% 		 	5.4	% 		 	4.2	% 		 	1.9	% 		 	4.1	% 		 	4.9	% 	
 
(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)	International life insurance net premiums written and deposits breakdown (excludes Combined North American and Life reinsurance businesses):	

 	 	 	 	 	 	 	 	Constant $	 	 	 	 	 	 	 	 	Constant $	 	
 	 	 	 	 	 	 	 	% Change	 	 	 	 	 	 	 	 	% Change	 	
 	 	 	 	 	Constant $	 	 	2Q-15 vs.	 	 	 	 	 	Constant $	 	 	YTD-15 vs.	 	
 	 	2Q-15	 	 	2Q-14	 	 	2Q-14	 	 	YTD-15	 	 	YTD-14	 	 	YTD-14	 	
International life insurance net premiums written	 	$	186	  	 	$	173	  	 	 	7.6	% 	 	$	365	  	 	$	344	  	 	 	6.0	% 	
International life insurance deposits (4)	 	 	263	  	 	 	275	  	 	 	-4.3	% 	 	 	516	  	 	 	470	  	 	 	9.8	% 	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total international life insurance net premiums written and deposits		$	449	  		$	448	  		 	0.3	% 		$	881	  		$	814	  		 	8.2	% 	

(4)	Includes deposits collected on universal life and investment contracts. Consistent with GAAP, premiums collected on universal life and investment contracts are considered deposits and excluded from revenues.	

Life		Page 11	

					
		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, 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	  					
Losses and loss expenses incurred		 	3,004	  		 	616	  		 	2,388	  					
Losses and loss expenses paid		 	(2,878	) 		 	(729	) 		 	(2,149	) 		 	90	% 	
Other (incl. foreign exch. revaluation)		 	185	  		 	56	  		 	129	  					
	  	 	 	 	 	 	 	 	 	 	 	 	 				
Balance at June 30, 2014		$	37,177	  		$	10,110	  		$	27,067	  					
Losses and loss expenses incurred		 	3,840	  		 	1,156	  		 	2,684	  					
Losses and loss expenses paid		 	(3,165	) 		 	(810	) 		 	(2,355	) 		 	88	% 	
Other (incl. foreign exch. revaluation)		 	(405	) 		 	(120	) 		 	(285	) 					
	  	 	 	 	 	 	 	 	 	 	 	 	 				
Balance at September 30, 2014		$	37,447	  		$	10,336	  		$	27,111	  					
Losses and loss expenses incurred		 	3,442	  		 	1,026	  		 	2,416	  					
Losses and loss expenses paid		 	(3,307	) 		 	(873	) 		 	(2,434	) 		 	101	% 	
Other (incl. foreign exch. revaluation)		 	733	  		 	818	  		 	(85	) 					
	  	 	 	 	 	 	 	 	 	 	 	 	 				
Balance at December 31, 2014		$	38,315	  		$	11,307	  		$	27,008	  					
Losses and loss expenses incurred		 	2,743	  		 	621	  		 	2,122	  					
Losses and loss expenses paid		 	(3,062	) 		 	(744	) 		 	(2,318	) 		 	109	% 	
Other (incl. foreign exch. revaluation)		 	(670	) 		 	(197	) 		 	(473	) 					
	  	 	 	 	 	 	 	 	 	 	 	 	 				
Balance at March 31, 2015		$	37,326	  		$	10,987	  		$	26,339	  					
Losses and loss expenses incurred		 	3,065	  		 	648	  		 	2,417	  					
Losses and loss expenses paid		 	(2,830	) 		 	(547	) 		 	(2,283	) 		 	94	% 	
Other (incl. foreign exch. revaluation)		 	669	  		 	60	  		 	609	  					
	  	 	 	 	 	 	 	 	 	 	 	 	 				
Balance at June 30, 2015		$	38,230	  		$	11,148	  		$	27,082	  					
	  	 	 	 	 	 	 	 	 	 	 	 	 				
Add net recoverable on paid losses		 	—  	  		 	627	  		 	(627	) 					
	  	 	 	 	 	 	 	 	 	 	 	 	 				
Balance including net recoverable on paid losses		$	38,230	  		$	11,775	  		$	26,455	  					

			
Loss Reserve Rollforward		Page 12	

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

 	  	June 30	 	 	March 31	 	 	December 31	 	
 	  	2015	 	 	2015	 	 	2014	 	
Reinsurance recoverable on paid losses and loss expenses	  				 				 				
Active operations	  	$	448	  	 	$	413	  	 	$	478	  	
Brandywine and Other Run-off	  	 	283	  	 	 	292	  	 	 	313	  	
	  	 	 	 	 	 	 	 	 	 	 	 	
Total		$	731	  		$	705	  		$	791	  	
	  	 	 	 	 	 	 	 	 	 	 	 	
Reinsurance recoverable on unpaid losses and loss expenses													
Active operations		$	10,262	  		$	10,052	  		$	10,348	  	
Brandywine and Other Run-off		 	1,136	  		 	1,184	  		 	1,210	  	
	  	 	 	 	 	 	 	 	 	 	 	 	
Total		$	11,398	  		$	11,236	  		$	11,558	  	
	  	 	 	 	 	 	 	 	 	 	 	 	
Gross reinsurance recoverable													
Active operations		$	10,710	  		$	10,465	  		$	10,826	  	
Brandywine and Other Run-off		 	1,419	  		 	1,476	  		 	1,523	  	
	  	 	 	 	 	 	 	 	 	 	 	 	
Total		$	12,129	  		$	11,941	  		$	12,349	  	
	  	 	 	 	 	 	 	 	 	 	 	 	
Provision for uncollectible reinsurance (1)													
Active operations		$	(214	) 		$	(213	) 		$	(217	) 	
Brandywine and Other Run-off		 	(140	) 		 	(140	) 		 	(140	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	
Total		$	(354	) 		$	(353	) 		$	(357	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	
Net reinsurance recoverable													
Active operations		$	10,496	  		$	10,252	  		$	10,609	  	
Brandywine and Other Run-off		 	1,279	  		 	1,336	  		 	1,383	  	
	  	 	 	 	 	 	 	 	 	 	 	 	
Total		$	11,775	  		$	11,588	  		$	11,992	  	

(1)	The provision for uncollectible reinsurance is based on a default analysis applied to gross reinsurance, net of usable collateral of approximately $2.5 billion.	

Reinsurance Recoverable		Page 13	

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

																									
 	  	June 30	 	 	March 31	 	 	December 31	 	
 	  	2015	 	 	2015	 	 	2014	 	
Market Value	  				 				 				 				 				 				
Fixed maturities available for sale	  	$	48,701	  	 				 	$	50,410	  	 				 	$	49,395	  	 				
Fixed maturities held to maturity	  	 	8,805	  	 				 	 	7,307	  	 				 	 	7,589	  	 				
Short-term investments	  	 	2,062	  	 				 	 	2,536	  	 				 	 	2,322	  	 				
	  	 	 	 	 				 	 	 	 	 				 	 	 	 	 				
Total fixed maturities		$	59,568	  						$	60,253	  						$	59,306	  					
	  	 	 	 	 				 	 	 	 	 				 	 	 	 	 				
Asset Allocation by Market Value																									
Treasury		$	2,424	  		 	4	% 		$	2,448	  		 	4	% 		$	2,448	  		 	4	% 	
Agency		 	1,139	  		 	2	% 		 	1,221	  		 	2	% 		 	1,222	  		 	2	% 	
Corporate and asset-backed		 	20,007	  		 	34	% 		 	20,370	  		 	34	% 		 	19,854	  		 	34	% 	
Mortgage-backed		 	12,661	  		 	21	% 		 	12,791	  		 	21	% 		 	12,325	  		 	21	% 	
Municipal		 	5,276	  		 	9	% 		 	5,067	  		 	9	% 		 	4,930	  		 	8	% 	
Non-U.S.		 	15,999	  		 	27	% 		 	15,820	  		 	26	% 		 	16,205	  		 	27	% 	
Short-term investments		 	2,062	  		 	3	% 		 	2,536	  		 	4	% 		 	2,322	  		 	4	% 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total fixed maturities		$	59,568	  		 	100	% 		$	60,253	  		 	100	% 		$	59,306	  		 	100	% 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Credit Quality by Market Value																									
AAA		$	9,320	  		 	16	% 		$	9,386	  		 	16	% 		$	8,943	  		 	15	% 	
AA		 	21,294	  		 	36	% 		 	21,760	  		 	36	% 		 	21,589	  		 	36	% 	
A		 	11,568	  		 	19	% 		 	11,712	  		 	19	% 		 	11,625	  		 	20	% 	
BBB		 	8,806	  		 	15	% 		 	8,789	  		 	15	% 		 	8,690	  		 	15	% 	
BB		 	4,531	  		 	8	% 		 	4,377	  		 	7	% 		 	4,372	  		 	7	% 	
B		 	3,860	  		 	6	% 		 	4,054	  		 	7	% 		 	3,916	  		 	7	% 	
Other		 	189	  		 	0	% 		 	175	  		 	0	% 		 	171	  		 	0	% 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total fixed maturities		$	59,568	  		 	100	% 		$	60,253	  		 	100	% 		$	59,306	  		 	100	% 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Cost/Amortized Cost																									
Fixed maturities available for sale		$	47,599	  						$	48,384	  						$	47,826	  					
Fixed maturities held to maturity		 	8,676	  						 	6,982	  						 	7,331	  					
Short-term investments		 	2,062	  						 	2,536	  						 	2,322	  					
	  	 	 	 	 				 	 	 	 	 				 	 	 	 	 				
Subtotal fixed maturities		 	58,337	  						 	57,902	  						 	57,479	  					
Equity securities		 	433	  						 	447	  						 	440	  					
Other investments		 	2,989	  						 	3,096	  						 	2,999	  					
	  	 	 	 	 				 	 	 	 	 				 	 	 	 	 				
Total investment portfolio		$	61,759	  						$	61,445	  						$	60,918	  					
	  	 	 	 	 				 	 	 	 	 				 	 	 	 	 				
Avg. duration of fixed maturities		 	4.1 years	  						 	3.9 years	  						 	4.0 years	  					
Avg. market yield of fixed maturities		 	2.9	% 						 	2.6	% 						 	2.8	% 					
Avg. credit quality		 	A/Aa	  						 	A/Aa	  						 	A/Aa	  					
Avg. yield on invested assets		 	3.6	% 						 	3.6	% 						 	3.8	% 					

Investments		Page 14	

					
		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 June 30, 2015	  				  				  				  				  				  				
Agency residential mortgage-backed (RMBS)	  	$	—  	  	  	$	10,094	  	  	$	—  	  	  	$	—  	  	  	$	—  	  	  	$	10,094	  	
Non-agency RMBS	  	 	29	  	  	 	5	  	  	 	15	  	  	 	10	  	  	 	13	  	  	 	72	  	
Commercial mortgage-backed	  	 	2,468	  	  	 	13	  	  	 	11	  	  	 	3	  	  	 	—  	  	  	 	2,495	  	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total mortgage-backed securities at market value		$	2,497	  		$	10,112	  		$	26	  		$	13	  		$	13	  		$	12,661	  	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
U.S. Corporate and Asset-backed Fixed Income Portfolios
Market Value at June 30, 2015

 	  	S&P Credit Rating	 	
 	  	Investment Grade	 	
 	  	AAA	 	  	AA	 	  	A	 	  	BBB	 	  	Total	 	
Asset-backed	  	$	657	  	  	$	62	  	  	$	—  	  	  	$	—  	  	  	$	719	  	
Banks	  	 	—  	  	  	 	17	  	  	 	2,161	  	  	 	280	  	  	 	2,458	  	
Basic Materials	  	 	—  	  	  	 	3	  	  	 	92	  	  	 	343	  	  	 	438	  	
Communications	  	 	—  	  	  	 	57	  	  	 	205	  	  	 	972	  	  	 	1,234	  	
Consumer, Cyclical	  	 	—  	  	  	 	98	  	  	 	416	  	  	 	497	  	  	 	1,011	  	
Consumer, Non-Cyclical	  	 	54	  	  	 	449	  	  	 	1,206	  	  	 	804	  	  	 	2,513	  	
Diversified Financial Services	  	 	—  	  	  	 	43	  	  	 	304	  	  	 	104	  	  	 	451	  	
Energy	  	 	25	  	  	 	34	  	  	 	149	  	  	 	788	  	  	 	996	  	
Industrial	  	 	—  	  	  	 	358	  	  	 	423	  	  	 	365	  	  	 	1,146	  	
Utilities	  	 	—  	  	  	 	9	  	  	 	626	  	  	 	398	  	  	 	1,033	  	
All Others	  	 	81	  	  	 	247	  	  	 	500	  	  	 	556	  	  	 	1,384	  	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total		$	817	  		$	1,377	  		$	6,082	  		$	5,107	  		$	13,383	  	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Market Value at June 30, 2015

 	  	S&P Credit Rating	 	
 	  	Below Investment Grade	 	
 	  	BB	 	  	B	 	  	CCC	 	  	Total	 	
Asset-backed	  	$	—  	  	  	$	3	  	  	$	11	  	  	$	14	  	
Banks	  	 	1	  	  	 	6	  	  	 	—  	  	  	 	7	  	
Basic Materials	  	 	154	  	  	 	101	  	  	 	4	  	  	 	259	  	
Communications	  	 	599	  	  	 	532	  	  	 	5	  	  	 	1,136	  	
Consumer, Cyclical	  	 	551	  	  	 	546	  	  	 	25	  	  	 	1,122	  	
Consumer, Non-Cyclical	  	 	567	  	  	 	837	  	  	 	33	  	  	 	1,437	  	
Diversified Financial Services	  	 	142	  	  	 	55	  	  	 	3	  	  	 	200	  	
Energy	  	 	463	  	  	 	206	  	  	 	15	  	  	 	684	  	
Industrial	  	 	381	  	  	 	359	  	  	 	12	  	  	 	752	  	
Utilities	  	 	219	  	  	 	68	  	  	 	—  	  	  	 	287	  	
All Others	  	 	331	  	  	 	382	  	  	 	13	  	  	 	726	  	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total		$	3,408	  		$	3,095	  		$	121	  		$	6,624	  	

			
Investments 2		Page 15	

					
		ACE Limited
Investment Portfolio - 3
(in millions of U.S. dollars)
(Unaudited)			

Non-U.S. Fixed Income Portfolio
June 30, 2015
Non-U.S. Government Securities

 	  	Market Value by S&P Credit Rating	 	
 	  	AAA	 	  	AA	 	  	A	 	  	BBB	 	  	BB and below	 	  	Total	 	
United Kingdom	  	$	1,082	  	  	$	—  	  	  	$	—  	  	  	$	—  	  	  	$	—  	  	  	$	1,082	  	
Republic of Korea	  	 	—  	  	  	 	867	  	  	 	48	  	  	 	—  	  	  	 	—  	  	  	 	915	  	
Federative Republic of Brazil	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	701	  	  	 	—  	  	  	 	701	  	
United Mexican States	  	 	—  	  	  	 	—  	  	  	 	429	  	  	 	125	  	  	 	—  	  	  	 	554	  	
Canada	  	 	481	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	481	  	
Kingdom of Thailand	  	 	—  	  	  	 	—  	  	  	 	375	  	  	 	—  	  	  	 	—  	  	  	 	375	  	
Province of Ontario	  	 	—  	  	  	 	360	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	360	  	
Province of Quebec	  	 	—  	  	  	 	—  	  	  	 	255	  	  	 	—  	  	  	 	—  	  	  	 	255	  	
Japan	  	 	—  	  	  	 	195	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	195	  	
Australia	  	 	187	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	187	  	
Other Non-U.S. Government Securities	  	 	534	  	  	 	886	  	  	 	325	  	  	 	362	  	  	 	555	  	  	 	2,662	  	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total		$	2,284	  		$	2,308	  		$	1,432	  		$	1,188	  		$	555	  		$	7,767	  	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Non-U.S. Corporate Securities

 	  	Market Value by S&P Credit Rating	 	
 	  	AAA	 	  	AA	 	  	A	 	  	BBB	 	  	BB and below	 	  	Total	 	
United Kingdom	  	$	118	  	  	$	45	  	  	$	617	  	  	$	547	  	  	$	196	  	  	$	1,523	  	
Canada	  	 	116	  	  	 	122	  	  	 	234	  	  	 	337	  	  	 	208	  	  	 	1,017	  	
United States (1)	  	 	1	  	  	 	90	  	  	 	106	  	  	 	235	  	  	 	196	  	  	 	628	  	
Australia	  	 	79	  	  	 	91	  	  	 	258	  	  	 	92	  	  	 	28	  	  	 	548	  	
France	  	 	35	  	  	 	61	  	  	 	211	  	  	 	177	  	  	 	37	  	  	 	521	  	
Netherlands	  	 	25	  	  	 	128	  	  	 	180	  	  	 	128	  	  	 	55	  	  	 	516	  	
Germany	  	 	91	  	  	 	19	  	  	 	113	  	  	 	135	  	  	 	25	  	  	 	383	  	
Switzerland	  	 	48	  	  	 	16	  	  	 	96	  	  	 	109	  	  	 	40	  	  	 	309	  	
China	  	 	—  	  	  	 	151	  	  	 	78	  	  	 	32	  	  	 	9	  	  	 	270	  	
Hong Kong	  	 	9	  	  	 	6	  	  	 	163	  	  	 	9	  	  	 	7	  	  	 	194	  	
Other Non-U.S. Corporate Securities	  	 	270	  	  	 	274	  	  	 	704	  	  	 	584	  	  	 	491	  	  	 	2,323	  	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total		$	792	  		$	1,003	  		$	2,760	  		$	2,385	  		$	1,292	  		$	8,232	  	

(1)	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 16	

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

 	  	June 30, 2015	  	Market Value	 	  	Rating	
1	  	JP Morgan Chase & Co	  	$	472	  	  	A	
2	  	General Electric Co	  	 	443	  	  	AA+	
3	  	Goldman Sachs Group Inc	  	 	328	  	  	A-	
4	  	Wells Fargo & Co	  	 	267	  	  	A+	
5	  	Bank of America Corp	  	 	241	  	  	A-	
6	  	HSBC Holdings Plc	  	 	236	  	  	A	
7	  	Verizon Communications Inc	  	 	228	  	  	BBB+	
8	  	Morgan Stanley	  	 	227	  	  	A-	
9	  	AT&T INC	  	 	209	  	  	BBB+	
10	  	Ford Motor Co	  	 	206	  	  	BBB-	

Investments 4	  	Page 17	

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

																									
 	  	Three months ended June 30, 2015	 	 	Six months ended June 30, 2015	 	
 	  	Net Realized	 	 	Net Unrealized	 	 	 	 	 	Net Realized	 	 	Net Unrealized	 	 	 	 	
 	  	Gains	 	 	Gains	 	 	Net	 	 	Gains	 	 	Gains	 	 	Net	 	
 	  	(Losses) (1)	 	 	(Losses)	 	 	Impact	 	 	(Losses) (1)	 	 	(Losses)	 	 	Impact	 	
Fixed maturities	  	$	5	  	 	$	(832	) 	 	$	(827	) 	 	$	1	  	 	$	(393	) 	 	$	(392	) 	
Fixed income derivatives	  	 	27	  	 	 	—  	  	 	 	27	  	 	 	28	  	 	 	—  	  	 	 	28	  	
Public equity	  	 	29	  	 	 	(23	) 	 	 	6	  	 	 	30	  	 	 	(6	) 	 	 	24	  	
Private equity	  	 	27	  	 	 	5	  	 	 	32	  	 	 	40	  	 	 	(7	) 	 	 	33	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total investment portfolio		 	88	  		 	(850	) 		 	(762	) 		 	99	  		 	(406	) 		 	(307	) 	
Mark-to-market from variable annuity reinsurance derivative transactions, net of applicable hedges (2)		 	102	  		 	—  	  		 	102	  		 	45	  		 	—  	  		 	45	  	
Foreign exchange (3)		 	(40	) 		 	136	  		 	96	  		 	(71	) 		 	(285	) 		 	(356	) 	
Partially-owned entities (4)		 	18	  		 	—  	  		 	18	  		 	31	  		 	—  	  		 	31	  	
Other		 	(7	) 		 	(6	) 		 	(13	) 		 	(6	) 		 	7	  		 	1	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net gains (losses) before tax		 	161	  		 	(720	) 		 	(559	) 		 	98	  		 	(684	) 		 	(586	) 	
Income tax expense (benefit)		 	7	  		 	(175	) 		 	(168	) 		 	8	  		 	(100	) 		 	(92	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net gains (losses)		$	154	  		$	(545	) 		$	(391	) 		$	90	  		$	(584	) 		$	(494	) 	

(1)	Other-than-temporary impairments for the quarter includes $7 million for fixed maturities and $1 million for public equity. Year to date other-than-temporary impairments includes $20 million for fixed maturities and $1 million for public equities.	
(2)	The quarter and year to date include $2 million and $14 million, respectively, of losses on applicable hedges.	
(3)	Unrealized foreign exchange gain, after-tax, for the quarter was $132 million. Unrealized foreign exchange loss, after-tax, year to date was $278 million.	
(4)	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 June 30, 2014	 	 	Six months ended June 30, 2014	 	
 	  	Net Realized	 	 	Net Unrealized	 	 	 	 	 	Net Realized	 	 	Net Unrealized	 	 	 	 	
 	  	Gains	 	 	Gains	 	 	Net	 	 	Gains	 	 	Gains	 	 	Net	 	
 	  	(Losses) (5)	 	 	(Losses)	 	 	Impact	 	 	(Losses) (5)	 	 	(Losses)	 	 	Impact	 	
Fixed maturities	  	$	20	  	 	$	538	  	 	$	558	  	 	$	31	  	 	$	999	  	 	$	1,030	  	
Fixed income derivatives	  	 	(15	) 	 	 	—  	  	 	 	(15	) 	 	 	(40	) 	 	 	—  	  	 	 	(40	) 	
Public equity	  	 	1	  	 	 	24	  	 	 	25	  	 	 	(4	) 	 	 	34	  	 	 	30	  	
Private equity	  	 	36	  	 	 	6	  	 	 	42	  	 	 	92	  	 	 	48	  	 	 	140	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total investment portfolio		 	42	  		 	568	  		 	610	  		 	79	  		 	1,081	  		 	1,160	  	
Mark-to-market from variable annuity reinsurance derivative transactions, net of applicable hedges (6)		 	(70	) 		 	—  	  		 	(70	) 		 	(137	) 		 	—  	  		 	(137	) 	
Foreign exchange (7)		 	(14	) 		 	153	  		 	139	  		 	(23	) 		 	120	  		 	97	  	
Partially-owned entities (8)		 	(3	) 		 	—  	  		 	(3	) 		 	(8	) 		 	—  	  		 	(8	) 	
Other		 	—  	  		 	(5	) 		 	(5	) 		 	(7	) 		 	(13	) 		 	(20	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net gains (losses) before tax		 	(45	) 		 	716	  		 	671	  		 	(96	) 		 	1,188	  		 	1,092	  	
Income tax expense (benefit)		 	1	  		 	147	  		 	148	  		 	(7	) 		 	245	  		 	238	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net gains (losses)		$	(46	) 		$	569	  		$	523	  		$	(89	) 		$	943	  		$	854	  	

(5)	Other-than-temporary impairments for the quarter includes $8 million for fixed maturities, $3 million for private equity and $1 million for public equity. Year to date other-than-temporary impairments includes $13 million for fixed maturities, $3 million for private equity, and $7 million for public equity.	
(6)	The quarter and year to date include $72 million and $91 million, respectively, of losses on applicable hedges.	
(7)	Unrealized foreign exchange gains, after-tax, for the quarter and year to date were $119 million and $78 million, respectively.	
(8)	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).	

Net Gains (Losses)		Page 18	

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

																	
 	  	June 30
2015	 	 	March 31
2015	 	 	December 31
2014	 	 	December 31
2013	 	
Total short-term debt (1) (2)	  	$	2,102	  	 	$	2,552	  	 	$	2,552	  	 	$	1,901	  	
Total long-term debt	  	 	4,157	  	 	 	4,157	  	 	 	3,357	  	 	 	3,807	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total debt		$	6,259	  		$	6,709	  		$	5,909	  		$	5,708	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total trust preferred securities		$	309	  		$	309	  		$	309	  		$	309	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total shareholders’ equity		$	29,555	  		$	29,702	  		$	29,587	  		$	28,825	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total capitalization		$	36,123	  		$	36,720	  		$	35,805	  		$	34,842	  	
Tangible capital (3)		$	30,154	  		$	31,204	  		$	30,081	  		$	29,438	  	
Leverage ratios																	
Debt/ total capitalization		 	17.3	% 		 	18.3	% 		 	16.5	% 		 	16.4	% 	
Debt plus trust preferred securities/ total capitalization		 	18.2	% 		 	19.1	% 		 	17.4	% 		 	17.3	% 	
Debt/ tangible capital		 	20.8	% 		 	21.5	% 		 	19.6	% 		 	19.4	% 	
Debt plus trust preferred securities/ tangible capital		 	21.8	% 		 	22.5	% 		 	20.7	% 		 	20.4	% 	
Note: As of June 30, 2015, there was $0.5 billion usage of credit facilities on a total commitment of $1.0 billion.
 
(1)	In May 2015, $450 million of 5.6 percent senior notes matured and were fully paid.	
(2)	Repurchase agreements in the amount of $850 million matured during the quarter, and there were new repurchase agreements in the amount of $850 million.	
(3)	Tangible capital is equal to total capitalization less goodwill and other intangible assets.	

Capital Structure		Page 19	

					
		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 June 30	 	 	Six months ended June 30	 	
 	  	2015	 	 	2014	 	 	2015	 	 	2014	 	
Numerator	  				 				 				 				
Operating income to common shares	  	$	788	  	 	$	825	  	 	$	1,533	  	 	$	1,602	  	
Adjusted net realized gains (losses), net of income tax	  	 	154	  	 	 	(46	) 	 	 	90	  	 	 	(89	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income		$	942	  		$	779	  		$	1,623	  		$	1,513	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Rollforward of Common Shares Outstanding																	
Shares - beginning of period		 	327,084,762	  		 	337,974,644	  		 	328,659,686	  		 	339,793,935	  	
Repurchase of shares (1)		 	(3,650,200	) 		 	(2,306,000	) 		 	(6,677,663	) 		 	(5,793,882	) 	
Shares issued, excluding option exercises		 	107,071	  		 	135,079	  		 	1,118,101	  		 	1,311,675	  	
Issued for option exercises		 	272,648	  		 	421,866	  		 	714,157	  		 	913,861	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Shares - end of period		 	323,814,281	  		 	336,225,589	  		 	323,814,281	  		 	336,225,589	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Denominator																	
Weighted average shares outstanding		 	325,463,196	  		 	337,846,228	  		 	326,795,838	  		 	338,353,260	  	
Effect of other dilutive securities		 	3,222,562	  		 	3,286,359	  		 	3,373,809	  		 	3,267,499	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Adj. wtd. avg. shares outstanding and assumed conversions		 	328,685,758	  		 	341,132,587	  		 	330,169,647	  		 	341,620,759	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Basic earnings per share																	
Operating income		$	2.42	  		$	2.44	  		$	4.69	  		$	4.73	  	
Adjusted net realized gains (losses), net of income tax		 	0.47	  		 	(0.14	) 		 	0.28	  		 	(0.26	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income		$	2.89	  		$	2.30	  		$	4.97	  		$	4.47	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Diluted earnings per share																	
Operating income		$	2.40	  		$	2.42	  		$	4.64	  		$	4.69	  	
Adjusted net realized gains (losses), net of income tax		 	0.46	  		 	(0.14	) 		 	0.27	  		 	(0.26	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income		$	2.86	  		$	2.28	  		$	4.91	  		$	4.43	  	

			
Earnings per share		Page 20	

					
		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

 	  	June 30	 	 	March 31	 	 	December 31	 	 	June 30	 	
 	  	2015	 	 	2015	 	 	2014	 	 	2014	 	
Shareholders’ equity	  	$	29,555	  	 	$	29,702	  	 	$	29,587	  	 	$	30,325	  	
Less: goodwill and other intangible assets	  	 	5,969	  	 	 	5,516	  	 	 	5,724	  	 	 	5,522	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Numerator for tangible book value per share		$	23,586	  		$	24,186	  		$	23,863	  		$	24,803	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Book value - % change over prior quarter		 	-0.5	% 		 	0.4	% 		 	-1.4	% 		 	3.3	% 	
Tangible book value - % change over prior quarter		 	-2.5	% 		 	1.4	% 		 	-3.0	% 		 	3.4	% 	
Denominator		 	323,814,281	  		 	327,084,762	  		 	328,659,686	  		 	336,225,589	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Book value per common share		$	91.27	  		$	90.81	  		$	90.02	  		$	90.19	  	
Tangible book value per common share		$	72.84	  		$	73.94	  		$	72.61	  		$	73.77	  	
Reconciliation of Book Value																	
Shareholders’ equity, beginning of quarter		$	29,702	  		$	29,587	  		$	30,017	  		$	29,369	  	
Operating income		 	788	  		 	745	  		 	827	  		 	825	  	
Adjusted net realized gains (losses), net of tax		 	154	  		 	(64	) 		 	(272	) 		 	(46	) 	
Net unrealized gains (losses), net of tax		 	(672	) 		 	361	  		 	94	  		 	453	  	
Repurchase of shares		 	(394	) 		 	(340	) 		 	(430	) 		 	(237	) 	
Dividend declared on common shares		 	(217	) 		 	(222	) 		 	(223	) 		 	(223	) 	
Cumulative translation, net of tax		 	132	  		 	(410	) 		 	(520	) 		 	119	  	
Pension liability		 	(5	) 		 	10	  		 	9	  		 	(3	) 	
Other (1)		 	67	  		 	35	  		 	85	  		 	68	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
		$	29,555	  		$	29,702	  		$	29,587	  		$	30,325	  	

(1)	Other primarily includes proceeds from exercise of stock options and stock compensation.	

Reconciliation Book Value		Page 21	

					
		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 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 gains and losses on 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 on crop derivatives. P&C loss and loss expense ratio and P&C combined ratio (both non-GAAP financial measures) include adjusted losses and loss expenses in the ratio numerator. A reconciliation of GAAP combined ratio to P&C combined ratio is provided on page 24.
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) 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. A reconciliation of Consolidated Other income (expense) on a GAAP basis to Consolidated Other income (expense)—operating is provided on page 24.
P&C combined ratio excluding catastrophe losses and prior period development (PPD) is a non-GAAP financial measure. The ratio numerator includes adjusted 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.
P&C loss and loss expense ratio excluding the impact of catastrophe losses and PPD is a non-GAAP financial measure. The loss ratio numerator includes adjusted 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.
International life insurance net premiums written and deposits collected, 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 insurance business because new life deposits are an important component of production and key to our efforts to grow our business.
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.
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 21. Tangible book value per common share excluding 2014 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 acquisition of the Fireman’s Fund high net worth personal lines insurance business in the United States in order to adjust for the distortive effect of acquisitions. In addition, we disclose per share measures that exclude the impact of foreign currency fluctuations during 2015 in order to adjust for the distortive effects of fluctuations in exchange rates.

Reconciliation Non-GAAP		Page 22	

					
		ACE Limited
Non-GAAP Financial Measures - 2
(in millions of U.S. dollars, except ratios)
(Unaudited)			
 
Regulation G - Non-GAAP Financial Measures (continued)
Operating income
Operating income is a common performance measure for insurance companies and is presented throughout this report.
The following table presents the reconciliation of Net income to Operating income:

 	  	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	YTD	 	  	YTD	 	 	Full Year	 	
 	  	2Q-15	 	  	1Q-15	 	 	4Q-14	 	 	3Q-14	 	 	2Q-14	 	 	2015	 	  	2014	 	 	2014	 	
Net income, as reported	  	$	942	  	  	$	681	  	 	$	555	  	 	$	785	  	 	$	779	  	 	$	1,623	  	  	$	1,513	  	 	$	2,853	  	
Adjusted net realized gains (losses)	  	 	128	  	  	 	(89	) 	 	 	(210	) 	 	 	(165	) 	 	 	(81	) 	 	 	39	  	  	 	(183	) 	 	 	(558	) 	
Net realized gains (losses) related to unconsolidated entities (1)	  	 	33	  	  	 	26	  	 	 	49	  	 	 	55	  	 	 	36	  	 	 	59	  	  	 	87	  	 	 	191	  	
Income tax expense (benefit) on adjusted net realized gains (losses)	  	 	7	  	  	 	1	  	 	 	111	  	 	 	(4	) 	 	 	1	  	 	 	8	  	  	 	(7	) 	 	 	100	  	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	
Operating income		$	788	  		$	745	  		$	827	  		$	891	  		$	825	  		$	1,533	  		$	1,602	  		$	3,320	  	

(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 Operating income (loss) of each segment and Corporate:

 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	YTD	 	 	YTD	 	 	Full Year	 	
 	  	2Q-15	 	 	1Q-15	 	 	4Q-14	 	 	3Q-14	 	 	2Q-14	 	 	2015	 	 	2014	 	 	2014	 	
Insurance – North American P&C	  	$	395	  	 	$	345	  	 	$	372	  	 	$	337	  	 	$	378	  	 	$	740	  	 	$	789	  	 	$	1,498	  	
Insurance – Overseas General	  	 	240	  	 	 	241	  	 	 	294	  	 	 	348	  	 	 	282	  	 	 	481	  	 	 	521	  	 	 	1,163	  	
Global Reinsurance	  	 	145	  	 	 	128	  	 	 	127	  	 	 	145	  	 	 	146	  	 	 	273	  	 	 	290	  	 	 	562	  	
Corporate	  	 	(74	) 	 	 	(70	) 	 	 	(87	) 	 	 	(68	) 	 	 	(72	) 	 	 	(144	) 	 	 	(141	) 	 	 	(296	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Global P&C (including Corporate)		 	706	  		 	644	  		 	706	  		 	762	  		 	734	  		 	1,350	  		 	1,459	  		 	2,927	  	
Insurance – North American Agriculture		 	15	  		 	35	  		 	45	  		 	57	  		 	19	  		 	50	  		 	(6	) 		 	96	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Consolidated Results (including Corporate) Excluding Life Segment		 	721	  		 	679	  		 	751	  		 	819	  		 	753	  		 	1,400	  		 	1,453	  		 	3,023	  	
Life		 	67	  		 	66	  		 	76	  		 	72	  		 	72	  		 	133	  		 	149	  		 	297	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Consolidated operating income		$	788	  		$	745	  		$	827	  		$	891	  		$	825	  		$	1,533	  		$	1,602	  		$	3,320	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Operating ROE
The following table presents the reconciliation of ROE to Operating ROE:

 	  	 	 	 	 	 	 	YTD	 	 	YTD	 	 	Full Year	 	
 	  	2Q-15	 	 	2Q-14	 	 	2015	 	 	2014	 	 	2014	 	
Net income	  	$	942	  	 	$	779	  	 	$	1,623	  	 	$	1,513	  	 	$	2,853	  	
Operating income	  	$	788	  	 	$	825	  	 	$	1,533	  	 	$	1,602	  	 	$	3,320	  	
Equity - beginning of period, as reported	  	$	29,702	  	 	$	29,369	  	 	$	29,587	  	 	$	28,825	  	 	$	28,825	  	
Less: unrealized gains (losses) on investments, net of deferred tax	  	 	2,212	  	 	 	1,594	  	 	 	1,851	  	 	 	1,174	  	 	 	1,174	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Equity - beginning of period, as adjusted		$	27,490	  		$	27,775	  		$	27,736	  		$	27,651	  		$	27,651	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Equity - end of period, as reported		$	29,555	  		$	30,325	  		$	29,555	  		$	30,325	  		$	29,587	  	
Less: unrealized gains (losses) on investments, net of deferred tax		 	1,540	  		 	2,047	  		 	1,540	  		 	2,047	  		 	1,851	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Equity - end of period, as adjusted		$	28,015	  		$	28,278	  		$	28,015	  		$	28,278	  		$	27,736	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Average equity, as reported		$	29,629	  		$	29,847	  		$	29,571	  		$	29,575	  		$	29,206	  	
Average equity, as adjusted		$	27,753	  		$	28,027	  		$	27,876	  		$	27,965	  		$	27,694	  	
Operating ROE		 	11.4	% 		 	11.8	% 		 	11.0	% 		 	11.5	% 		 	12.0	% 	
ROE		 	12.7	% 		 	10.4	% 		 	11.0	% 		 	10.2	% 		 	9.8	% 	

Reconciliation Non-GAAP 2		Page 23	

					
		ACE Limited
Non-GAAP Financial Measures - 3
(in millions of U.S. dollars, except ratios)
(Unaudited)			
 
Regulation G - Non-GAAP Financial Measures (continued)
Operating effective tax rate
The following table presents the reconciliation of effective tax rate to the operating effective tax rate:

 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	YTD	 	 	YTD	 	 	Full Year	 	
 	  	2Q-15	 	 	1Q-15	 	 	4Q-14	 	 	3Q-14	 	 	2Q-14	 	 	2015	 	 	2014	 	 	2014	 	
Tax expense, as reported	  	$	143	  	 	$	120	  	 	$	232	  	 	$	176	  	 	$	133	  	 	$	263	  	 	$	226	  	 	$	634	  	
Tax expense (benefit) on adjusted net realized gains (losses)	  	 	7	  	 	 	1	  	 	 	111	  	 	 	(4	) 	 	 	1	  	 	 	8	  	 	 	(7	) 	 	 	100	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Tax expense, adjusted		$	136	  		$	119	  		$	121	  		$	180	  		$	132	  		$	255	  		$	233	  		$	534	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income before tax, as reported		$	1,085	  		$	801	  		$	787	  		$	961	  		$	912	  		$	1,886	  		$	1,739	  		$	3,487	  	
Less: adjusted realized gains (losses)		 	128	  		 	(89	) 		 	(210	) 		 	(165	) 		 	(81	) 		 	39	  		 	(183	) 		 	(558	) 	
Less: realized gains (losses) related to unconsolidated entities		 	33	  		 	26	  		 	49	  		 	55	  		 	36	  		 	59	  		 	87	  		 	191	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Operating income before tax		$	924	  		$	864	  		$	948	  		$	1,071	  		$	957	  		$	1,788	  		$	1,835	  		$	3,854	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Effective tax rate		 	13.2	% 		 	15.0	% 		 	29.5	% 		 	18.3	% 		 	14.6	% 		 	13.9	% 		 	13.0	% 		 	18.2	% 	
Adjustment for tax impact of adjusted net realized gains (losses)		 	1.5	% 		 	-1.3	% 		 	-16.8	% 		 	-1.4	% 		 	-0.9	% 		 	0.3	% 		 	-0.3	% 		 	-4.3	% 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Operating effective tax rate		 	14.7	% 		 	13.7	% 		 	12.7	% 		 	16.9	% 		 	13.7	% 		 	14.2	% 		 	12.7	% 		 	13.9	% 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Other income (expense) - operating
The following table presents the reconciliation of Consolidated Other income (expense) on a GAAP basis to Consolidated Other income (expense) - operating. Other income (expense) – operating is a non-GAAP financial measure which excludes gains (losses) from fair value changes in separate account assets that do not qualify for separate account reporting under GAAP and the portion of net realized gains and losses related to unconsolidated entities. Gains (losses) from fair value changes in separate account assets are reclassified from Other income (expense) for purposes of presenting Life underwriting income, as the offsetting movement in the separate account liabilities is included in Policy benefits. Net realized gains (losses) related to unconsolidated entities is excluded from operating income in order to enhance the understanding of our core results of operations as they are heavily influenced by, and fluctuate in part according to market conditions.

 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	YTD	 	 	YTD	 	 	Full Year	 	
 	  	2Q-15	 	 	1Q-15	 	 	4Q-14	 	 	3Q-14	 	 	2Q-14	 	 	2015	 	 	2014	 	 	2014	 	
Consolidated GAAP Other income (expense):	  				 				 				 				 				 				 				 				
Consolidated excluding Life segment	  	$	(40	) 	 	$	(18	) 	 	$	18	  	 	$	22	  	 	$	12	  	 	$	(58	) 	 	$	42	  	 	$	82	  	
Life segment	  	 	23	  	 	 	23	  	 	 	3	  	 	 	(3	) 	 	 	13	  	 	 	46	  	 	 	—  	  	 	 	—  	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Consolidated		 	(17	) 		 	5	  		 	21	  		 	19	  		 	25	  		 	(12	) 		 	42	  		 	82	  	
Less: Gains (losses) from fair value changes in separate account assets																																	
Consolidated excluding Life segment		 	—  	  		 	—  	  		 	—  	  		 	—  	  		 	—  	  		 	—  	  		 	—  	  		 	—  	  	
Life segment		 	6	  		 	11	  		 	(3	) 		 	(6	) 		 	17	  		 	17	  		 	11	  		 	2	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Consolidated		 	6	  		 	11	  		 	(3	) 		 	(6	) 		 	17	  		 	17	  		 	11	  		 	2	  	
Less: Net realized gains (losses) related to unconsolidated entities																																	
Consolidated excluding Life segment		 	16	  		 	12	  		 	43	  		 	51	  		 	38	  		 	28	  		 	91	  		 	185	  	
Life segment		 	17	  		 	14	  		 	6	  		 	4	  		 	(2	) 		 	31	  		 	(4	) 		 	6	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Consolidated		 	33	  		 	26	  		 	49	  		 	55	  		 	36	  		 	59	  		 	87	  		 	191	  	
Consolidated Other income (expense) - operating:																																	
Consolidated excluding Life segment		 	(56	) 		 	(30	) 		 	(25	) 		 	(29	) 		 	(26	) 		 	(86	) 		 	(49	) 		 	(103	) 	
Life segment		 	—  	  		 	(2	) 		 	—  	  		 	(1	) 		 	(2	) 		 	(2	) 		 	(7	) 		 	(8	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Consolidated		$	(56	) 		$	(32	) 		$	(25	) 		$	(30	) 		$	(28	) 		$	(88	) 		$	(56	) 		$	(111	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
P&C combined ratio
The following table presents the reconciliation of GAAP combined ratio to P&C combined ratio. The P&C combined ratio includes the impact of realized gains and losses 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 gains and losses on these derivatives as part of the results of our underwriting operations.

 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	YTD	 	 	YTD	 	 	Full Year	 	
 	  	2Q-15	 	 	1Q-15	 	 	4Q-14	 	 	3Q-14	 	 	2Q-14	 	 	2015	 	 	2014	 	 	2014	 	
GAAP combined ratio	  	 	87.6	% 	 	 	88.4	% 	 	 	88.5	% 	 	 	87.3	% 	 	 	87.7	% 	 	 	88.0	% 	 	 	88.2	% 	 	 	88.1	% 	
Impact of gains and losses on crop derivatives	  	 	0.1	% 	 	 	0.0	% 	 	 	0.0	% 	 	 	-1.0	% 	 	 	-0.2	% 	 	 	0.0	% 	 	 	0.0	% 	 	 	-0.4	% 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
P&C combined ratio		 	87.7	% 		 	88.4	% 		 	88.5	% 		 	86.3	% 		 	87.5	% 		 	88.0	% 		 	88.2	% 		 	87.7	% 	

			
Reconciliation Non-GAAP 3		Page 24	

					
		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 25