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) – October 25, 2005
 
ACE LIMITED
(Exact name of registrant as specified in its charter)

Cayman Islands	 	1-11778	 	98-0091805	
(State or other jurisdiction)	 	(Commission File Number)	 	(I.R.S. Employer of Incorporation
Identification No.)	
 
ACE Global Headquarters
17 Woodbourne Avenue
Hamilton HM 08 Bermuda
(Address of principal executive offices)
 
Registrant’s telephone number, including area code: (441) 295-5200
 
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-2(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 October 25, 2005, ACE Limited issued a press release reporting its third quarter 2005 results and the availability of its third quarter 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.	
 
(c)	Exhibits	

Exhibit
Number
	  	Description

99.1	  	Press release, dated October 25, 2005, reporting third quarter results	
		
99.2	  	Third Quarter 2005 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/    P HILIP V. B ANCROFT        	
 	 	Philip V. Bancroft	
 	 	Chief Financial Officer	
 
DATE: October 25, 2005

 
EXHIBIT INDEX

Number
	  	Description
	  	Method of Filing

99.1	  	Press release, dated October 25, 2005, reporting third quarter results	  	Furnished herewith	
			
99.2	  	Third Quarter 2005 Financial Supplement	  	Furnished herewith	
  
Exhibit 99.1

             	 	ACE Limited	 	PO Box HM 1015	 	News
Release	
	 	ACE Global Headquarters	 	Hamilton HM DX	 		
	 	17 Woodbourne Avenue	 	Bermuda	 		
	 	Hamilton HM 08	 	 	 		
	 	Bermuda	 	441 295-5200 main	 		
	 	 	 	441 292-8675 fax	 		
	 	 	 	 
www.acelimited.com	 	 	
 
FOR IMMEDIATE RELEASE

 	 	Investor Contact:    	  	Helen M. Wilson	
 	 	 	  	(441) 299-9283	
 	 	 	  	helen.wilson@ace.bm	
			
 	 	Media Contact:	  	Robert T. Grieves	
 	 	 	  	(212) 621-8684	
 	 	 	  	robert.grieves@ace-ina.com	
 
ACE LIMITED REPORTS THIRD QUARTER NET LOSS OF $112 MILLION;
NET INVESTMENT INCOME INCREASES 30% TO $320 MILLION;
COMBINED RATIO EXCLUDING CATASTROPHES IS 86.4%
 
HAMILTON, Bermuda — October 25, 2005 — ACE Limited (NYSE: ACE) today reported a net loss for the third quarter ended September 30, 2005 of $112 million or $(0.43) per common share after payment of preferred dividends, compared with net income of $4 million or $(0.03) per share for the same quarter last year. Income (loss) excluding net realized gains (losses) for the third quarter was $(187) million, or $(0.70) per share, compared with $37 million or $0.09 per share for the same quarter a year ago. (1) The losses from hurricanes Katrina, Rita and Dennis and other catastrophes resulted in an after-tax charge of $742 million for the quarter or $2.56 per share compared with after-tax net catastrophe losses of $406 million or $1.42 per share in the third quarter of 2004. The combined ratio was 116.5%. If catastrophe losses were excluded, the combined ratio would be 86.4%, a 0.6 point improvement over the comparable quarter in 2004.
 
Third Quarter Summary
(in millions, except per share amounts)
																					
 	  	 	 	 	 	 	 	 	 	 	(Per Share - Diluted)	 	
 	  	2005
	 	 	2004
	 	 	Change
	 	 	2005
	 	 	2004
	 	 	Change
	 	
 	  	 	 	 	(Restated)	 	 	 	 	 	 	 	 	(Restated)	 	 	 	 	
							
Net income (loss)	  	$	(112	)	 	$    4	 	 	NM	 	 	$	(0.43	)	 	$ (0.03	)	 	NM	 	
							
Net realized gains (losses), net of tax	  	 	75	 	 	(33	)	 	NM	 	 	 	0.27	 	 	(0.12	)	 	NM	 	
							
Income (loss) excluding net realized gains, net of tax (1)	  	 	(187	)	 	37	 	 	NM	 	 	 	(0.70	)	 	0.09	 	 	NM	 	
							
Catastrophe losses, net of tax	  	 	742	 	 	406	 	 	NM	 	 	 	2.56	 	 	1.42	 	 	NM	 	
							
Income excluding net realized gains (losses) and catastrophe losses, net of tax (1)	  	$	555	 	 	$443	 	 	25	%	 	$	1.86	 	 	$  1.51	 	 	23	%	
							
Average shares outstanding	  	 	 	 	 	 	 	 	 	 	 	 	289.8	 	 	285.6	 	 	 	 	

Net income for the nine months ended September 30, 2005 was $792 million or $2.63 per share, compared with $875 million or $2.95 per share in the same period of 2004. For the nine months ended September 30, 2005, income excluding net realized gains was $711 million or $2.34 per share, compared with $840 million or $2.82 per share in the same period of 2004. (1) After-tax net catastrophe losses for the nine months ended September 30, 2005 were $742 million or $2.57 per share, compared with $406 million or $1.42 per share in the same period of 2004. The combined ratio for the nine months was 98.9%. Excluding catastrophe losses, the combined ratio would be 88.4% for the period. Annualized return on equity for the nine month period was 9.5% (2) .
 
Nine Months
(in millions, except per share amounts)

 	  	 	  	 	  	 	 	 	(Per Share - Diluted)
	 	
 	  	2005
	  	2004
	  	Change
	 	 	2005
	  	2004
	  	Change
	 	
 	  	 	  	(Restated)	  	 	 	 	 	  	(Restated)	  	 	 	
							
Net income	  	$	792	  	$	875	  	(9	)%	 	$	2.63	  	$	2.95	  	(11	)%	
							
Net realized gains, net of tax	  	 	81	  	 	35	  	NM	 	 	 	0.29	  	 	0.13	  	NM	 	
							
Income excluding net realized gains, net of tax (1)	  	 	711	  	 	840	  	(15	)%	 	 	2.34	  	 	2.82	  	(17	)%	
							
Catastrophe losses, net of tax	  	 	742	  	 	406	  	NM	 	 	 	2.57	  	 	1.42	  	NM	 	
							
Income excluding net realized gains, and catastrophe losses, net of tax (1)	  	$	1,453	  	$	1,246	  	16	%	 	$	4.91	  	$	4.24	  	16	%	
							
Average shares outstanding	  	 	 	  	 	 	  	 	 	 	 	288.7	  	 	285.3	  	 	 	
 
Evan Greenberg, President and Chief Executive Officer of ACE Limited, commented:
 
“The third quarter was a difficult quarter for the insurance industry, and our company was no exception. We experienced a series of significant natural catastrophes including Hurricane Katrina, which alone produced the largest insured loss in history.
 
“Our results reflect the strength of our organization. Our catastrophe losses were within our tolerance level for events of this size given our capital base. Our revenue growth reflected our underwriting discipline in the face of a softening underwriting environment. Exclusive of Hurricanes Rita and Katrina, our earnings were excellent, with strong contributions from both underwriting and investment income.
 
“The successful offering of common shares in early October, which raised $1.5 billion of gross equity capital, signals our confidence in the future market environment, and we plan to move swiftly and deliberately to take advantage of the opportunities that we believe will emerge.”

Third quarter operating highlights were as follows:
 
 	•	 	P&C net earned premiums increased 3% over the prior year’s quarter	
 	•	 	The P&C combined ratio was 115.9% for the quarter compared with 103.8% a year ago. Excluding catastrophe losses, the P&C combined ratio was 86.6% for the quarter compared with 86.5% a year ago	
 	•	 	Operating cash flow amounted to $1.2 billion for the quarter	
 	•	 	Invested assets increased by $1.2 billion from June 30, 2005	
 	•	 	Net investment income increased 30% to $320 million compared to prior year’s quarter	
 	•	 	Shareholders’ equity increased 4% to $10.2 billion from December 31, 2004	
 	•	 	Tangible equity increased to $7.5 billion, a gain of 5% from December 31, 2004	
 	•	 	Diluted book value per share as of September 30, 2005 was $33.62 (3)	
 
On October 4, 2005, the Company issued common stock of approximately $1.5 billion, which is not reflected in amounts above.
 
Details of our financial results, excluding the impact of catastrophe losses and related premiums for the third quarter, for our P&C business segments are available in the financial supplement. Key items include:
 
 	•	 	Insurance-North American: Net premiums written declined 1% for the quarter. The combined ratio was 85.9%.	
 
 	•	 	Insurance-Overseas General: Net premiums written declined 2% for the quarter. The combined ratio was 86.1%.	
 
 	•	 	Global Reinsurance: Net premiums written were up 23% for the quarter. This segment had a combined ratio of 78.4%.	
 
 	•	 	Financial Services: Income excluding net realized gains (losses) was $74 million for the quarter.	
 
All amounts included herein for prior periods have been adjusted to reflect the previously reported restatements.
 
Please refer to the ACE Financial Supplement dated September 30, 2005, which is posted on the Company’s website, for more detailed information on individual segment performance, together with additional disclosure on reinsurance recoverable, loss reserves, investment portfolio and capital structure. ACE’s website reference (url) is 
http://media.corporate-ir.net/media_files/nys/ace/reports/fin_supp_september_30_2005.xls . (Due to the length of this URL, it may be necessary to copy and paste this hyperlink into your Internet browser’s URL address field.)
 
ACE will host its third quarter 2005 earnings conference call and webcast on Wednesday, October 26, 2005 beginning at 8:30 a.m. EDT. The earnings conference call will be available via live and archived webcast at www.acelimited.com or by dialing 888-889-5602 (within the United States) or 973-582-2734 (international), conference ID 6506897. Please refer to the ACE Limited website in the Investor Information section under Calendar of Events for details. A replay of the call will be available from Wednesday, October 26, 2005 until Friday, November 25, 2005. To listen to the replay dial 877-519-4471 (in the United States) or 973-341-3080 (international); passcode 6506897.

The ACE Group of Companies is a global leader in insurance and reinsurance serving a diverse group of clients. Headed by ACE Limited, a component of the Standard & Poor’s 500 stock index, the ACE Group conducts its business on a worldwide basis with operating subsidiaries in more than 50 countries. Additional information can be found at: www.acelimited.com .

1 Non-GAAP Financial Measures:
Operating Income or Income excluding net realized gains (losses), net of tax is a common performance measurement. We believe this presentation enhances the understanding of our results of operations by highlighting the underlying profitability of our insurance business. We exclude net realized gains (losses) because the amount of these gains (losses) is heavily influenced by, and fluctuates in part according to, the availability of market opportunities.
 
Income excluding net realized gains (losses) and catastrophe losses, net of tax is a non-GAAP measure. We present income excluding net realized gains (losses) and catastrophe losses, net of tax because those losses are deemed to be significant for the third quarter and nine months of 2005. We believe this separate presentation is meaningful and useful for users of our financial information.
Underwriting income is calculated by subtracting losses and loss expenses, life and annuity benefits, policy acquisition costs and administrative expenses from net premiums earned. 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 net realized gains (losses). We believe the use of these measures enhances the understanding of our results of operations by highlighting the underlying profitability of our insurance business.
Tangible shareholders’ equity is shareholders’ equity less goodwill. See reconciliation of Non-GAAP Financial Measure on page 26 in the financial supplement.
 
These measures should not be viewed as a substitute for net income determined in accordance with generally accepted accounting principles (GAAP).
 
2 Calculated using income excluding net realized gains (losses).
3 Diluted book value per ordinary share is ordinary shareholders’ equity and net proceeds from assumed conversions of outstanding in-the-money options divided by the sum of shares outstanding and the number of options assumed issued.
NM – not meaningful comparison
 
Cautionary Statement Regarding Forward-Looking Statements: 
 
Any forward-looking statements made in this press release reflect the Company’s current views with respect to future events and financial performance and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements involve risks and uncertainties, which may cause actual results to differ materially from those set forth in these statements. For example, the Company’s forward-looking statements could be affected by competition, pricing and policy term trends, the levels of new and renewal business achieved, market acceptance, changes in demand, the frequency of unpredictable catastrophic events, actual loss experience, uncertainties in the reserving or settlement process, new theories of liability, judicial, legislative, regulatory and other governmental developments, litigation tactics and developments, investigation developments, the amount and timing of reinsurance recoverable, credit developments among reinsurers, actual market developments, rating agency action, possible terrorism or the outbreak and effects of war and economic, political, regulatory, insurance and reinsurance business conditions, as well as management’s response to these factors, and other factors identified in the Company’s filings with the Securities and Exchange Commission. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the dates on which they are made. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
 
(tables to follow)

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

							
 	  	September 30
2005
	  	December 31
2004
	
 	  	 	  	(Restated)	
Assets	  	 	 	  	 	 	
Total investments	  	$	29,975	  	$	26,925	
Cash	  	 	409	  	 	498	
Insurance and reinsurance balances receivable	  	 	3,508	  	 	3,255	
Reinsurance recoverable	  	 	15,662	  	 	14,882	
Other assets	  	 	10,991	  	 	10,623	
 	  			  			
Total assets	  	$	60,545	  	$	56,183	

Liabilities	  	 	 	  	 	 	
Unpaid losses and loss expenses	  	$	34,674	  	$	31,483	
Unearned premiums	  	 	6,238	  	 	5,983	
Other liabilities	  	 	9,404	  	 	8,872	
 	  			  			
Total liabilities	  	$	50,316	  	$	46,338	

Shareholders’ equity	  	 	 	  	 	 	
Total shareholders’ equity	  	$	10,229	  	$	9,845	
 	  			  			
Total liabilities and shareholders’ equity	  	$	60,545	  	$	56,183	

Diluted book value per ordinary share (3) 	  	$	33.62	  	$	32.51	

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

 	  	Three Months Ended
September 30
	 	 	Nine Months Ended
September 30
	 	
 	  	 	 	 	Restated
	 	 	 	 	 	Restated
	 	
 	  	2005
	 	 	2004
	 	 	2005
	 	 	2004
	 	
Gross premiums written	  	$	4,261	 	 	$	3,988	 	 	$	13,017	 	 	$	12,448	 	
Net premiums written	  	 	2,889	 	 	 	2,774	 	 	 	9,164	 	 	 	8,855	 	
Net premiums earned	  	 	3,091	 	 	 	2,859	 	 	 	8,889	 	 	 	8,229	 	
Losses and loss expenses	  	 	2,806	 	 	 	2,221	 	 	 	6,439	 	 	 	5,476	 	
Life and annuity benefits	  	 	33	 	 	 	48	 	 	 	105	 	 	 	134	 	
Policy acquisition costs	  	 	426	 	 	 	393	 	 	 	1,243	 	 	 	1,154	 	
Administrative expenses	  	 	308	 	 	 	306	 	 	 	960	 	 	 	928	 	
 	  				 				 				 				
Underwriting income (1)	  	 	(482	)	 	 	(109	)	 	 	142	 	 	 	537	 	
Net investment income	  	 	320	 	 	 	246	 	 	 	910	 	 	 	731	 	
Net realized gains (losses)	  	 	83	 	 	 	(32	)	 	 	101	 	 	 	67	 	
Interest expense	  	 	43	 	 	 	50	 	 	 	128	 	 	 	140	 	
Other (income) expense	  	 	(25	)	 	 	(14	)	 	 	(36	)	 	 	2	 	
Income tax expense	  	 	15	 	 	 	65	 	 	 	269	 	 	 	318	 	
 	  				 				 				 				
Net income (loss)	  	 	(112	)	 	 	4	 	 	 	792	 	 	 	875	 	
Preference shares dividend	  	 	(11	)	 	 	(11	)	 	 	(33	)	 	 	(33	)	
 	  				 				 				 				
Net income (loss) available to holders of ordinary shares	  	$	(123	)	 	$	(7	)	 	$	759	 	 	$	842	 	
 	  				 				 				 				
Diluted earnings per share:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income excluding net realized gains (losses) (1)	  	$	(0.70	)	 	$	0.09	 	 	$	2.34	 	 	$	2.82	 	
Net income (loss)	  	$	(0.43	)	 	$	(0.03	)	 	$	2.63	 	 	$	2.95	 	
Weighted average basic shares outstanding	  	 	284,777,017	 	 	 	280,993,760	 	 	 	284,016,708	 	 	 	279,988,076	 	
Weighted average diluted shares outstanding	  	 	289,837,970	 	 	 	285,617,079	 	 	 	288,720,764	 	 	 	285,286,130	 	
Loss and loss expense ratio	  	 	92.5	%	 	 	79.4	%	 	 	73.9	%	 	 	67.9	%	
Policy acquisition cost ratio	  	 	13.9	%	 	 	13.8	%	 	 	14.1	%	 	 	14.1	%	
Administrative expense ratio	  	 	10.1	%	 	 	10.9	%	 	 	10.9	%	 	 	11.5	%	
Combined ratio	  	 	116.5	%	 	 	104.1	%	 	 	98.9	%	 	 	93.5	%	

 
Ratios exclude life reinsurance business
 
Page 6/7

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

 	  	Three Months Ended
September 30
	 	 	Nine Months Ended
September 30
	 	
 	  	 	 	 	Restated
	 	 	 	 	 	Restated
	 	
 	  	2005
	 	 	2004
	 	 	2005
	 	 	2004
	 	
Gross Premiums Written	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Insurance—North American	  	$	2,250	 	 	$	2,234	 	 	$	6,744	 	 	$	6,241	 	
Insurance—Overseas General	  	 	1,332	 	 	 	1,292	 	 	 	4,396	 	 	 	4,466	 	
Global Reinsurance*	  	 	468	 	 	 	394	 	 	 	1,488	 	 	 	1,450	 	
Financial Services	  	 	211	 	 	 	68	 	 	 	389	 	 	 	291	 	
 	  				 				 				 				
Total	  	$	4,261	 	 	$	3,988	 	 	$	13,017	 	 	$	12,448	 	

Net Premiums Written	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Insurance—North American	  	$	1,307	 	 	$	1,366	 	 	$	4,144	 	 	$	3,907	 	
Insurance—Overseas General	  	 	933	 	 	 	980	 	 	 	3,190	 	 	 	3,256	 	
Global Reinsurance*	  	 	437	 	 	 	360	 	 	 	1,442	 	 	 	1,403	 	
Financial Services	  	 	212	 	 	 	68	 	 	 	388	 	 	 	289	 	
 	  				 				 				 				
Total	  	$	2,889	 	 	$	2,774	 	 	$	9,164	 	 	$	8,855	 	

Net Premiums Earned	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Insurance—North American	  	$	1,338	 	 	$	1,251	 	 	$	3,942	 	 	$	3,436	 	
Insurance—Overseas General	  	 	1,031	 	 	 	1,086	 	 	 	3,200	 	 	 	3,174	 	
Global Reinsurance*	  	 	465	 	 	 	411	 	 	 	1,308	 	 	 	1,195	 	
Financial Services	  	 	257	 	 	 	111	 	 	 	439	 	 	 	424	 	
 	  				 				 				 				
Total	  	$	3,091	 	 	$	2,859	 	 	$	8,889	 	 	$	8,229	 	

Income (Loss) Excluding Net Realized Gains (Losses) (1) 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Insurance—North American	  	$	61	 	 	$	96	 	 	$	456	 	 	$	401	 	
Insurance—Overseas General	  	 	52	 	 	 	98	 	 	 	357	 	 	 	314	 	
Global Reinsurance*	  	 	(240	)	 	 	(120	)	 	 	5	 	 	 	128	 	
Financial Services	  	 	(3	)	 	 	27	 	 	 	87	 	 	 	170	 	
Corporate	  	 	(57	)	 	 	(64	)	 	 	(194	)	 	 	(173	)	
 	  				 				 				 				
Total	  	$	(187	)	 	$	37	 	 	$	711	 	 	$	840	 	

 
* Includes both property and casualty reinsurance and life reinsurance
 
# # #
 
Page 7/7
  
Exhibit 99.2

 
			
 	  	Financial Supplement
 
September 30, 2005	
		
Investor Contact
 
Helen M. Wilson
Phone: (441) 299-9283
Fax: (441) 292-8675	  	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/A and Quarterly Reports on Form 10-Q and Form 10-Q/A.	
		
email: investorrelations@ace.bm	  	Cautionary Statement Regarding Forward-Looking Statements:	
		
 	  	Any forward-looking statements made in this financial supplement reflect the Company’s current views with respect to future events and financial performance and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements involve risks and uncertainties which may cause actual results to differ materially from those set forth in these statements. For example, the Company’s forward-looking statements, such as statements concerning exposures, reserves and recoverables, could be affected by the frequency of unpredictable catastrophic events, actual loss experience, uncertainties in the reserving or settlement process, new theories of liability, judicial, legislative, regulatory and other governmental developments, litigation tactics and developments, investigation developments, the amount and timing of reinsurance receivable and credit developments among reinsurers.	
		
 	  	The Company’s forward-looking statements could also be affected by competition, pricing and policy term trends, the levels of new and renewal business achieved, 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. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.	

 
			
	  	ACE Limited	
	  	Financial Supplement Table of Contents	

 	  	 	  	Page
	
I.	  	Financial Highlights	  	 	
 	  	- Consolidated Financial Highlights	  	1	
 	  	- Consolidated Financial Highlights 2005 Excluding Third Quarter Catastrophe Loss Charges	  	2	
 	  	- Consolidated Financial Highlights 2004 Excluding Third Quarter Catastrophe Loss Charges	  	3	
			
II.	  	Consolidated Results	  	 	
 	  	- Consolidated Results - Consecutive Quarters	  	4-5	
 	  	- Summary Consolidated Balance Sheets	  	6	
 	  	- Consolidated Premiums by Line of Business	  	7	
 	  	- Consolidating Statement of Operations	  	8-9	
 	  	- Consolidating Schedule of Third Quarter Catastrophe Loss Charges	  	10	
 	  	- Third Quarter Catastrophe Loss Analysis	  	11	
			
III.	  	Segment Results	  	 	
  	  	- Insurance-North American	  	12	
 	  	- Insurance-Overseas General	  	13	
 	  	- Global Reinsurance	  	14-15	
 	  	- Financial Services	  	16	
			
IV.	  	Balance Sheet Details	  	 	
 	  	- Loss Reserve Rollforward	  	17	
 	  	- Reinsurance Recoverable Analysis	  	18-21	
 	  	- Investment Portfolio	  	22	
 	  	- Realized and Unrealized Gains (Losses)	  	23	
 	  	- Capital Structure	  	24	
 	  	- Computation of Basic and Diluted Earnings Per Share	  	25	
			
V.	  	Other Disclosures	  	 	
 	  	- Non-GAAP Financial Measures	  	26	
 	  	- Diluted Book Value per Ordinary Share	  	27	
 	  	- Comprehensive Income	  	28	
 	  	- Glossary	  	29	

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

 	  	Three months ended September 30
	 	 	 	 	 	Nine months ended September 30
	 	 	 	 	
 	  	2005
	 	 	2004
	 	 	% Change
3Q-05 vs.
3Q-04
	 	 	2005
	 	 	2004
	 	 	% Change
YTD-05 vs.
YTD-04
	 	
Gross premiums written	  	$	4,261	 	 	$	3,988	 	 	7	%	 	$	13,017	 	 	$	12,448	 	 	5	%	
							
Net premiums written	  	$	2,889	 	 	$	2,774	 	 	4	%	 	$	9,164	 	 	$	8,855	 	 	3	%	
							
Net premiums earned	  	$	3,091	 	 	$	2,859	 	 	8	%	 	$	8,889	 	 	$	8,229	 	 	8	%	
							
Net investment income	  	$	320	 	 	$	246	 	 	30	%	 	$	910	 	 	$	731	 	 	24	%	
							
Net income (loss)	  	$	(112	)	 	$	4	 	 	NM	 	 	$	792	 	 	$	875	 	 	-9	%	
							
Income excluding net realized gains (losses) (1)	  	$	(187	)	 	$	37	 	 	NM	 	 	$	711	 	 	$	840	 	 	-15	%	
							
Comprehensive income	  	$	(223	)	 	$	325	 	 	NM	 	 	$	499	 	 	$	776	 	 	-36	%	
							
Operating cash flow	  	$	1,193	 	 	$	1,807	 	 	-34	%	 	$	3,499	 	 	$	4,071	 	 	-14	%	
							
Combined ratio	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Loss and loss expense ratio	  	 	92.5	%	 	 	79.4	%	 	 	 	 	 	73.9	%	 	 	67.9	%	 	 	 	
Underwriting and administrative expense ratio	  	 	24.0	%	 	 	24.7	%	 	 	 	 	 	25.0	%	 	 	25.6	%	 	 	 	
 	  				 				 	 	 	 				 				 	 	 	
Combined ratio	  	 	116.5	%	 	 	104.1	%	 	 	 	 	 	98.9	%	 	 	93.5	%	 	 	 	
							
Annualized ROE*	  	 	-8.1	%	 	 	1.2	%	 	 	 	 	 	9.5	%	 	 	12.5	%	 	 	 	
Annualized ROE, excluding FAS 115*	  	 	-8.5	%	 	 	1.2	%	 	 	 	 	 	10.1	%	 	 	13.5	%	 	 	 	
							
Effective tax rate on income excluding net realized gains (losses)	  	 	-4	%	 	 	63	%	 	 	 	 	 	26	%	 	 	25	%	 	 	 	
							
Diluted earnings per share (2) 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income excluding net realized gains (losses) (1)	  	$	(0.70	)	 	$	0.09	 	 	NM	 	 	$	2.34	 	 	$	2.82	 	 	-17	%	
Net income	  	$	(0.43	)	 	$	(0.03	)	 	NM	 	 	$	2.63	 	 	$	2.95	 	 	-11	%	
							
Diluted book value per ordinary share	  	$	33.62	 	 	$	31.37	 	 	7	%	 	$	33.62	 	 	$	31.37	 	 	7	%	
Diluted tangible book value per ordinary share	  	$	24.70	 	 	$	22.23	 	 	11	%	 	$	24.70	 	 	$	22.23	 	 	11	%	
							
Weighted average basic ordinary shares outstanding	  	 	284.8	 	 	 	281.0	 	 	 	 	 	 	284.0	 	 	 	280.0	 	 	 	 	
Weighted average diluted ordinary shares outstanding	  	 	289.8	 	 	 	285.6	 	 	 	 	 	 	288.7	 	 	 	285.3	 	 	 	 	
							
Debt/ total capitalization	  	 	15.9	%	 	 	16.8	%	 	 	 	 	 	15.9	%	 	 	16.8	%	 	 	 	
 
(1)	See page 26 Non-GAAP Financial Measures.	
 
(2)	The denominator for diluted loss per share for the three months ended September 30, 2005 and 2004 does not include the dilutive effect of other dilutive securities. The incremental shares from assumed conversions are not included in computing diluted loss per share amounts as these shares are considered anti-dilutive.	
 
*	Calculated using income excluding net realized gains (losses).	

Financial Highlights	  	Page 1	

			
	  	ACE Limited	
	  	Consolidated Financial Highlights Excluding Third Quarter Catastrophe Loss Charges	
	  	(in millions of U.S. dollars, except per share data and ratios)	
	  	(Unaudited)	

 	  	Three months ended September 30, 2005
	 	 	Nine months ended September 30, 2005
	 	
 	  	As reported
	 	 	Q3 Catastrophe
loss charge
	 	 	Adjusted (1)
	 	 	As reported
	 	 	Q3 Catastrophe
loss charge
	 	 	Adjusted (1)
	 	
Net premiums written (3)	  	$	2,832	 	 	$	(63	)	 	$	2,769	 	 	$	8,992	 	 	$	(63	)	 	$	8,929	 	
							
Net premiums earned (3)	  	$	3,034	 	 	$	(95	)	 	$	2,939	 	 	$	8,717	 	 	$	(95	)	 	$	8,622	 	
							
Losses and loss expenses	  	$	2,806	 	 	$	(996	)	 	$	1,810	 	 	$	6,439	 	 	$	(996	)	 	$	5,443	 	
							
Income tax expense	  	$	15	 	 	$	159	 	 	$	174	 	 	$	269	 	 	$	159	 	 	$	428	 	
							
Net income (loss)	  	$	(112	)	 	$	742	 	 	$	630	 	 	$	792	 	 	$	742	 	 	$	1,534	 	
							
Income excluding net realized gains (losses) (1)	  	$	(187	)	 	$	742	 	 	$	555	 	 	$	711	 	 	$	742	 	 	$	1,453	 	
							
Combined ratio	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Loss and loss expense ratio	  	 	92.5	%	 	 	-30.9	%	 	 	61.6	%	 	 	73.9	%	 	 	-10.8	%	 	 	63.1	%	
Underwriting and administrative expense ratio	  	 	24.0	%	 	 	0.8	%	 	 	24.8	%	 	 	25.0	%	 	 	0.3	%	 	 	25.3	%	
 	  				 				 				 				 				 				
Combined ratio	  	 	116.5	%	 	 	-30.1	%	 	 	86.4	%	 	 	98.9	%	 	 	-10.5	%	 	 	88.4	%	
							
Annualized ROE*	  	 	-8.1	%	 	 	 	 	 	 	 	 	 	 	9.5	%	 	 	 	 	 	 	 	 	
Annualized ROE, excluding FAS 115*	  	 	-8.5	%	 	 	 	 	 	 	 	 	 	 	10.1	%	 	 	 	 	 	 	 	 	
							
Effective tax rate on income excluding net realized gains (losses)	  	 	-4	%	 	 	18	%	 	 	23	%	 	 	26	%	 	 	18	%	 	 	22	%	
							
Diluted earnings per share (2) 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income excluding net realized gains (losses) (1)	  	$	(0.70	)	 	$	2.56	 	 	$	1.86	 	 	$	2.34	 	 	$	2.57	 	 	$	4.91	 	
Net income (loss)	  	$	(0.43	)	 	$	2.56	 	 	$	2.13	 	 	$	2.63	 	 	$	2.57	 	 	$	5.20	 	
							
Weighted average basic ordinary shares outstanding	  	 	284.8	 	 	 	 	 	 	 	284.8	 	 	 	284.0	 	 	 	 	 	 	 	284.0	 	
Weighted average diluted ordinary shares outstanding	  	 	289.8	 	 	 	 	 	 	 	289.8	 	 	 	288.7	 	 	 	 	 	 	 	288.7	 	
 
(1)	See page 26 Non-GAAP Financial Measures.	
 
(2)	The denominator for diluted loss per share for the three months ended September 30, 2005 and 2004 does not include the dilutive effect of other dilutive securities. The incremental shares from assumed conversions are not included in computing diluted loss per share amounts as these shares are considered anti-dilutive.	
 
(3)	Excludes life as reported on page 8.	
 
*	Calculated using income excluding net realized gains (losses).	

Financial Highlights (2)	  	Page 2	

			
	  	ACE Limited	
	  	Consolidated Financial Highlights Excluding Third Quarter Catastrophe Loss Charges	
	  	(in millions of U.S. dollars, except per share data and ratios)	
	  	(Unaudited)	

 	  	Three months ended September 30, 2004
	 	 	Nine months ended September 30, 2004
	 	
 	  	As reported
	 	 	Q3 Catastrophe
loss charge
	 	 	Adjusted (1)
	 	 	As reported
	 	 	Q3 Catastrophe
loss charge
	 	 	Adjusted (1)
	 	
Net premiums written (3)	  	$	2,715	 	 	$	11	 	 	$	2,726	 	 	$	8,690	 	 	$	11	 	 	$	8,701	 	
							
Net premiums earned (3)	  	$	2,799	 	 	$	11	 	 	$	2,810	 	 	$	8,064	 	 	$	11	 	 	$	8,075	 	
							
Losses and loss expenses	  	$	2,221	 	 	$	(468	)	 	$	1,753	 	 	$	5,476	 	 	$	(468	)	 	$	5,008	 	
							
Income tax expense	  	$	65	 	 	$	73	 	 	$	138	 	 	$	318	 	 	$	73	 	 	$	391	 	
							
Net income	  	$	4	 	 	$	406	 	 	$	410	 	 	$	875	 	 	$	406	 	 	$	1,281	 	
							
Income excluding net realized gains (losses) (1)	  	$	37	 	 	$	406	 	 	$	443	 	 	$	840	 	 	$	406	 	 	$	1,246	 	
							
Combined ratio	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Loss and loss expense ratio	  	 	79.4	%	 	 	-17.0	%	 	 	62.4	%	 	 	67.9	%	 	 	-5.9	%	 	 	62.0	%	
Underwriting and administrative expense ratio	  	 	24.7	%	 	 	-0.1	%	 	 	24.6	%	 	 	25.6	%	 	 	0.0	%	 	 	25.6	%	
 	  				 				 				 				 				 				
Combined ratio	  	 	104.1	%	 	 	-17.1	%	 	 	87.0	%	 	 	93.5	%	 	 	-5.9	%	 	 	87.6	%	
							
Annualized ROE*	  	 	1.2	%	 	 	 	 	 	 	 	 	 	 	12.5	%	 	 	 	 	 	 	 	 	
Annualized ROE, excluding FAS 115*	  	 	1.2	%	 	 	 	 	 	 	 	 	 	 	13.5	%	 	 	 	 	 	 	 	 	
							
Effective tax rate on income excluding net realized gains (losses)	  	 	63	%	 	 	15	%	 	 	24	%	 	 	25	%	 	 	15	%	 	 	22	%	
							
Diluted earnings per share (2) 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income excluding net realized gains (losses) (1)	  	$	0.09	 	 	$	1.42	 	 	$	1.51	 	 	$	2.82	 	 	$	1.42	 	 	$	4.24	 	
Net income (loss)	  	$	(0.03	)	 	$	1.42	 	 	$	1.39	 	 	$	2.95	 	 	$	1.42	 	 	$	4.37	 	
							
Weighted average basic ordinary shares outstanding	  	 	281.0	 	 	 	 	 	 	 	281.0	 	 	 	280.0	 	 	 	 	 	 	 	280.0	 	
Weighted average diluted ordinary shares outstanding	  	 	285.6	 	 	 	 	 	 	 	285.6	 	 	 	285.3	 	 	 	 	 	 	 	285.3	 	
 
(1)	See page 26 Non-GAAP Financial Measures.	
 
(2)	The denominator for diluted loss per share for the three months ended September 30, 2005 and 2004 does not include the dilutive effect of other dilutive securities. The incremental shares from assumed conversions are not included in computing diluted loss per share amounts as these shares are considered anti-dilutive.	
 
(3)	Excludes life as reported on page 8.	
 
*	Calculated using income excluding net realized gains (losses).	

Financial Highlights (3)	  	Page 3	

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

 	  	3Q-05
	 	 	2Q-05
	 	 	1Q-05
	 	 	4Q-04
	 	 	3Q-04
	 	 	YTD
2005
	 	 	YTD
2004
	 	 	Full Year
2004
	 	
Property and Casualty (2)	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Gross premiums written	  	$	3,993	 	 	$	4,141	 	 	$	4,322	 	 	$	3,562	 	 	$	3,860	 	 	$	12,456	 	 	$	11,988	 	 	$	15,550	 	
Net premiums written	  	 	2,620	 	 	 	2,837	 	 	 	3,147	 	 	 	2,559	 	 	 	2,647	 	 	 	8,604	 	 	 	8,401	 	 	 	10,960	 	
Net premiums earned	  	 	2,777	 	 	 	2,772	 	 	 	2,729	 	 	 	2,730	 	 	 	2,688	 	 	 	8,278	 	 	 	7,640	 	 	 	10,370	 	
Losses and loss expenses	  	 	2,496	 	 	 	1,774	 	 	 	1,706	 	 	 	2,120	 	 	 	2,105	 	 	 	5,976	 	 	 	5,185	 	 	 	7,305	 	
Policy acquisition costs	  	 	419	 	 	 	424	 	 	 	382	 	 	 	405	 	 	 	385	 	 	 	1,225	 	 	 	1,115	 	 	 	1,520	 	
Administrative expenses	  	 	303	 	 	 	308	 	 	 	330	 	 	 	335	 	 	 	301	 	 	 	941	 	 	 	887	 	 	 	1,222	 	
 	  				 				 				 				 				 				 				 				
P& C underwriting income (loss)	  	$	(441	)	 	$	266	 	 	$	311	 	 	$	(130	)	 	$	(103	)	 	$	136	 	 	$	453	 	 	$	323	 	
									
Financial Services underwriting income (loss)	  	 	(58	)	 	 	14	 	 	 	1	 	 	 	(3	)	 	 	(11	)	 	 	(43	)	 	 	73	 	 	 	70	 	
Life underwriting income excluding investment income	  	 	17	 	 	 	15	 	 	 	17	 	 	 	11	 	 	 	5	 	 	 	49	 	 	 	11	 	 	 	22	 	
Net investment income	  	 	320	 	 	 	305	 	 	 	285	 	 	 	282	 	 	 	246	 	 	 	910	 	 	 	731	 	 	 	1,013	 	
Net realized gains (losses)	  	 	83	 	 	 	32	 	 	 	(14	)	 	 	130	 	 	 	(32	)	 	 	101	 	 	 	67	 	 	 	197	 	
Interest expense	  	 	43	 	 	 	43	 	 	 	42	 	 	 	43	 	 	 	50	 	 	 	128	 	 	 	140	 	 	 	183	 	
Other (income) expense	  	 	(25	)	 	 	(6	)	 	 	(5	)	 	 	1	 	 	 	(14	)	 	 	(36	)	 	 	2	 	 	 	3	 	
Income tax expense (benefit)	  	 	15	 	 	 	128	 	 	 	126	 	 	 	(32	)	 	 	65	 	 	 	269	 	 	 	318	 	 	 	286	 	
 	  				 				 				 				 				 				 				 				
Net income (loss)	  	$	(112	)	 	$	467	 	 	$	437	 	 	$	278	 	 	$	4	 	 	$	792	 	 	$	875	 	 	$	1,153	 	
									
Net realized gains (losses)	  	 	83	 	 	 	32	 	 	 	(14	)	 	 	130	 	 	 	(32	)	 	 	101	 	 	 	67	 	 	 	197	 	
Tax expense on net realized gains (losses)	  	 	8	 	 	 	8	 	 	 	4	 	 	 	12	 	 	 	1	 	 	 	20	 	 	 	32	 	 	 	44	 	
 	  				 				 				 				 				 				 				 				
Income excluding net realized gains (losses) (1)	  	$	(187	)	 	$	443	 	 	$	455	 	 	$	160	 	 	$	37	 	 	$	711	 	 	$	840	 	 	$	1,000	 	
 	  				 				 				 				 				 				 				 				
% Change versus prior year period (2) 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Property and Casualty net premiums written	  	 	-1	%	 	 	2	%	 	 	6	%	 	 	13	%	 	 	23	%	 	 	2	%	 	 	24	%	 	 	21	%	
Property and Casualty net premiums earned	  	 	3	%	 	 	7	%	 	 	16	%	 	 	17	%	 	 	24	%	 	 	8	%	 	 	25	%	 	 	23	%	
Property and Casualty net premiums written excluding CATS	  	 	1	%	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	3	%	 	 	 	 	 	 	 	 	
Property and Casualty net premiums earned excluding CATS	  	 	5	%	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	9	%	 	 	 	 	 	 	 	 	
									
Other ratios	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net premiums written/gross premiums written	  	 	66	%	 	 	69	%	 	 	73	%	 	 	72	%	 	 	69	%	 	 	69	%	 	 	70	%	 	 	70	%	
Net premiums written/gross premiums written excluding CATS	  	 	68	%	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Effective tax rate on income excluding net realized gains (losses)	  	 	-4	%	 	 	21	%	 	 	21	%	 	 	-38	%	 	 	63	%	 	 	26	%	 	 	25	%	 	 	19	%	
 
(1)	See page 26 Non-GAAP Financial Measures.	
 
(2)	Property and casualty excluding financial services is presented to allow for comparison and analysis with earnings guidance. This is a non-GAAP measure. See page 8 and 9 for a reconciliation to GAAP.	
 
*	Calculated using income excluding net realized gains (losses).	

Consolidated Results	  	Page 4	

			
	  	ACE Limited	
	  	Consolidated Results - Consecutive Quarters - 2	
	  	(in millions of U.S. dollars, except share and per share data)	
	  	(Unaudited)	
 
ACE Limited Consolidated

 	  	3Q-05
	 	 	2Q-05
	 	 	1Q-05
	 	 	4Q-04
	 	 	3Q-04
	 	 	YTD
2005
	 	 	YTD
2004
	 	 	Full Year
2004
	 	
Combined ratio	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Loss and loss expense ratio	  	 	92.5	%	 	 	64.4	%	 	 	63.5	%	 	 	78.5	%	 	 	79.4	%	 	 	73.9	%	 	 	67.9	%	 	 	70.6	%	
Policy acquisition cost ratio	  	 	13.9	%	 	 	14.8	%	 	 	13.6	%	 	 	14.4	%	 	 	13.8	%	 	 	14.1	%	 	 	14.1	%	 	 	14.2	%	
Administrative expense ratio	  	 	10.1	%	 	 	11.0	%	 	 	11.9	%	 	 	11.9	%	 	 	10.9	%	 	 	10.9	%	 	 	11.5	%	 	 	11.6	%	
 	  				 				 				 				 				 				 				 				
Combined ratio	  	 	116.5	%	 	 	90.2	%	 	 	89.0	%	 	 	104.8	%	 	 	104.1	%	 	 	98.9	%	 	 	93.5	%	 	 	96.4	%	

Property and Casualty (1) 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	  	3Q-05
	 	 	2Q-05
	 	 	1Q-05
	 	 	4Q-04
	 	 	3Q-04
	 	 	YTD
2005
	 	 	YTD
2004
	 	 	Full Year
2004
	 	
Combined ratio	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Loss and loss expense ratio	  	 	89.9	%	 	 	64.0	%	 	 	62.5	%	 	 	77.7	%	 	 	78.3	%	 	 	72.2	%	 	 	67.9	%	 	 	70.4	%	
Policy acquisition cost ratio	  	 	15.1	%	 	 	15.3	%	 	 	14.0	%	 	 	14.9	%	 	 	14.3	%	 	 	14.8	%	 	 	14.6	%	 	 	14.7	%	
Administrative expense ratio	  	 	10.9	%	 	 	11.1	%	 	 	12.1	%  (2)	 	 	12.2	%	 	 	11.2	%	 	 	11.4	%	 	 	11.6	%	 	 	11.8	%	
 	  				 				 				 				 				 				 				 				
Combined ratio	  	 	115.9	%	 	 	90.4	%	 	 	88.6	%	 	 	104.8	%	 	 	103.8	%	 	 	98.4	%	 	 	94.1	%	 	 	96.9	%	
 	  				 				 				 				 				 				 				 				
Large losses and other items	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Asbestos, environmental and other run-off losses	  	$	—  	 	 	$	—  	 	 	$	—  	 	 	$	465	 	 	$	—  	 	 	$	—  	 	 	$	—  	 	 	$	465	 	
Catastrophe and other large losses (before tax)	  	$	756	 	 	$	—  	 	 	$	3	 	 	$	31	 	 	$	457	 	 	$	759	 	 	$	457	 	 	$	488	 	
Prior period development (3)	  	$	27	 	 	$	27	 	 	$	29	 	 	$	105	 	 	$	—  	 	 	$	83	 	 	$	6	 	 	$	111	 	
 
(1)	Property and casualty excluding financial services is presented to allow for comparison and analysis with earnings guidance.	
 
(2)	Includes $30M of legal expenses related to the investigations.	
 
(3)	See Financial Services schedule for prior period development related to that segment.	

Consolidated Results 2	  	Page 5	

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

 	  	September 30
2005
	  	June 30
2005
	  	March 31
2005
	  	December 31
2004
	
 	  	(Unaudited)	  	(Unaudited)	  	(Unaudited)	  	(Audited)	
Assets	  	 	 	  	 	 	  	 	 	  	 	 	
Fixed maturities available for sale, at fair value	  	$	22,551	  	$	21,136	  	$	20,336	  	$	22,891	
Fixed maturities held to maturity, at amortized cost	  	 	3,125	  	 	3,151	  	 	3,211	  	 	—  	
Equity securities, at fair value	  	 	1,436	  	 	1,380	  	 	1,351	  	 	1,265	
Short-term investments	  	 	2,212	  	 	2,476	  	 	2,156	  	 	2,163	
Other investments	  	 	651	  	 	628	  	 	622	  	 	606	
 	  			  			  			  			
Total investments	  	 	29,975	  	 	28,771	  	 	27,676	  	 	26,925	
					
Cash	  	 	409	  	 	651	  	 	574	  	 	498	
Securities lending collateral	  	 	1,438	  	 	958	  	 	1,255	  	 	1,059	
Insurance and reinsurance balances receivable	  	 	3,508	  	 	3,728	  	 	3,695	  	 	3,255	
Reinsurance recoverable	  	 	15,662	  	 	14,428	  	 	14,268	  	 	14,882	
Deferred policy acquisition costs	  	 	970	  	 	990	  	 	1,000	  	 	944	
Prepaid reinsurance premiums	  	 	1,441	  	 	1,434	  	 	1,427	  	 	1,355	
Goodwill	  	 	2,703	  	 	2,703	  	 	2,695	  	 	2,700	
Deferred tax assets	  	 	1,244	  	 	1,134	  	 	1,178	  	 	1,173	
Investments in partially owned insurance companies	  	 	862	  	 	832	  	 	816	  	 	796	
Other assets	  	 	2,333	  	 	2,494	  	 	2,425	  	 	2,596	
 	  			  			  			  			
Total assets	  	$	60,545	  	$	58,123	  	$	57,009	  	$	56,183	
 	  			  			  			  			
Liabilities	  	 	 	  	 	 	  	 	 	  	 	 	
Unpaid losses and loss expenses	  	$	34,674	  	$	32,101	  	$	31,426	  	$	31,483	
Unearned premiums	  	 	6,238	  	 	6,457	  	 	6,527	  	 	5,983	
Future policy benefits for life and annuity contracts	  	 	521	  	 	517	  	 	507	  	 	509	
Insurance and reinsurance balances payable	  	 	2,428	  	 	2,438	  	 	2,290	  	 	2,337	
Deposit liabilities	  	 	331	  	 	347	  	 	302	  	 	343	
Securities lending payable	  	 	1,438	  	 	958	  	 	1,255	  	 	1,059	
Payable for investments purchased	  	 	710	  	 	785	  	 	630	  	 	507	
Accounts payable, accrued expenses and other liabilities	  	 	1,554	  	 	1,613	  	 	1,694	  	 	1,710	
Short-term debt	  	 	446	  	 	147	  	 	147	  	 	146	
Long-term debt	  	 	1,564	  	 	1,849	  	 	1,849	  	 	1,849	
Trust preferred securities	  	 	412	  	 	412	  	 	412	  	 	412	
 	  			  			  			  			
Total liabilities	  	 	50,316	  	 	47,624	  	 	47,039	  	 	46,338	
					
Shareholders’ equity	  	 	 	  	 	 	  	 	 	  	 	 	
Total shareholders’ equity, excl. AOCI	  	 	9,788	  	 	9,947	  	 	9,522	  	 	9,111	
Accumulated other comprehensive income (AOCI)	  	 	441	  	 	552	  	 	448	  	 	734	
 	  			  			  			  			
Total shareholders’ equity	  	 	10,229	  	 	10,499	  	 	9,970	  	 	9,845	
 	  			  			  			  			
Total liabilities and shareholders’ equity	  	$	60,545	  	$	58,123	  	$	57,009	  	$	56,183	
 	  			  			  			  			
Diluted book value per ordinary share (1) 	  	$	33.62	  	$	34.29	  	$	32.64	  	$	32.51	
Diluted tangible book value per ordinary share (1) 	  	$	24.70	  	$	25.39	  	$	23.56	  	$	23.37	
 
(1)	See page 26 Non-GAAP Financial Measures.	

Consol Bal Sheet	  	Page 6	

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

 	  	3Q-05
	  	% of
Total
Consolidated
	 	 	3Q-04
	  	% of
Total
Consolidated
	 	 	% Change
3Q-05 vs.
3Q-04
	 	 	YTD
2005
	  	% of
Total
Consolidated
	 	 	YTD
2004
	  	% of
Total
Consolidated
	 	 	% Change
YTD-05 vs.
YTD-04
	 	
Net premiums written	  	 	 	  	 	 	 	 	 	  	 	 	 	 	 	 	 	 	  	 	 	 	 	 	  	 	 	 	 	 	
Property and all other	  	$	818	  	28	%	 	$	799	  	29	%	 	2	%	 	$	2,729	  	30	%	 	$	2,803	  	32	%	 	-3	%	
Casualty	  	 	1,498	  	52	%	 	 	1,585	  	57	%	 	-5	%	 	 	4,918	  	54	%	 	 	4,754	  	54	%	 	3	%	
Personal accident	  	 	304	  	11	%	 	 	263	  	9	%	 	16	%	 	 	957	  	10	%	 	 	844	  	9	%	 	13	%	
 	  			  			 			  			 			 			  			 			  			 			
Total P&C	  	 	2,620	  	91	%	 	 	2,647	  	95	%	 	-1	%	 	 	8,604	  	94	%	 	 	8,401	  	95	%	 	2	%	
 	  			  			 			  			 			 			  			 			  			 			
Global Re - life	  	 	57	  	2	%	 	 	59	  	2	%	 	-3	%	 	 	172	  	2	%	 	 	165	  	2	%	 	4	%	
Financial Services	  	 	212	  	7	%	 	 	68	  	3	%	 	212	%	 	 	388	  	4	%	 	 	289	  	3	%	 	34	%	
 	  			  			 			  			 			 			  			 			  			 			
Total Consolidated	  	$	2,889	  	100	%	 	$	2,774	  	100	%	 	4	%	 	$	9,164	  	100	%	 	$	8,855	  	100	%	 	3	%	
 	  			  			 			  			 			 			  			 			  			 			
Net premiums earned	  	 	 	  	 	 	 	 	 	  	 	 	 	 	 	 	 	 	  	 	 	 	 	 	  	 	 	 	 	 	
Property and all other	  	$	882	  	29	%	 	$	890	  	31	%	 	-1	%	 	$	2,627	  	30	%	 	$	2,545	  	31	%	 	3	%	
Casualty	  	 	1,579	  	51	%	 	 	1,508	  	53	%	 	5	%	 	 	4,723	  	53	%	 	 	4,259	  	52	%	 	11	%	
Personal accident	  	 	316	  	10	%	 	 	290	  	10	%	 	9	%	 	 	928	  	10	%	 	 	836	  	10	%	 	11	%	
 	  			  			 			  			 			 			  			 			  			 			
Total P&C	  	 	2,777	  	90	%	 	 	2,688	  	94	%	 	3	%	 	 	8,278	  	93	%	 	 	7,640	  	93	%	 	8	%	
 	  			  			 			  			 			 			  			 			  			 			
Global Re - life	  	 	57	  	2	%	 	 	60	  	2	%	 	-5	%	 	 	172	  	2	%	 	 	165	  	2	%	 	4	%	
Financial Services	  	 	257	  	8	%	 	 	111	  	4	%	 	132	%	 	 	439	  	5	%	 	 	424	  	5	%	 	4	%	
 	  			  			 			  			 			 			  			 			  			 			
Total Consolidated	  	$	3,091	  	100	%	 	$	2,859	  	100	%	 	8	%	 	$	8,889	  	100	%	 	$	8,229	  	100	%	 	8	%	

			
Line of Business	  	Page 7	

 
			
	  	ACE Limited	
	  	Consolidating Statement of Operations	
	  	Three months ended September 30, 2005 and 2004	
	  	(in millions of U.S. dollars)	
	  	(Unaudited)	

 	  	Insurance -
North
American
	 	 	Insurance -
Overseas
General
	 	 	Global
Reinsurance
	 	 	Corporate
& Other
	 	 	Consolidated
P&C
	 	 	Financial
Services
	 	 	ACE
Consolidated
	 	
September 30, 2005	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Gross premiums written	  	$	2,250	 	 	$	1,332	 	 	$	411	 	 	$	—  	 	 	$	3,993	 	 	$	211	 	 	$	4,204	 	
Net premiums written	  	 	1,307	 	 	 	933	 	 	 	380	 	 	 	—  	 	 	 	2,620	 	 	 	212	 	 	 	2,832	 	
Net premiums earned	  	 	1,338	 	 	 	1,031	 	 	 	408	 	 	 	—  	 	 	 	2,777	 	 	 	257	 	 	 	3,034	 	
Losses and loss expenses	  	 	1,173	 	 	 	687	 	 	 	637	 	 	 	(1	)	 	 	2,496	 	 	 	310	 	 	 	2,806	 	
Policy acquisition costs	  	 	134	 	 	 	207	 	 	 	78	 	 	 	—  	 	 	 	419	 	 	 	2	 	 	 	421	 	
Administrative expenses	  	 	96	 	 	 	145	 	 	 	16	 	 	 	46	 	 	 	303	 	 	 	3	 	 	 	306	 	
 	  				 				 				 				 				 				 				
Underwriting income (loss)	  	 	(65	)	 	 	(8	)	 	 	(323	)	 	 	(45	)	 	 	(441	)	 	 	(58	)	 	 	(499	)	
								
Life underwriting income (includes investment income)	  	 	—  	 	 	 	—  	 	 	 	27	 	 	 	—  	 	 	 	27	 	 	 	—  	 	 	 	27	 	
Net investment income - property and casualty	  	 	139	 	 	 	82	 	 	 	45	 	 	 	9	 	 	 	275	 	 	 	35	 	 	 	310	 	
Net realized gains (losses)	  	 	10	 	 	 	17	 	 	 	12	 	 	 	37	 	 	 	76	 	 	 	7	 	 	 	83	 	
Interest expense	  	 	6	 	 	 	—  	 	 	 	1	 	 	 	36	 	 	 	43	 	 	 	—  	 	 	 	43	 	
Other (income) expense	  	 	(1	)	 	 	5	 	 	 	1	 	 	 	—  	 	 	 	5	 	 	 	(30	)	 	 	(25	)	
Income tax expense (benefit)	  	 	10	 	 	 	22	 	 	 	(12	)	 	 	(15	)	 	 	5	 	 	 	10	 	 	 	15	 	
 	  				 				 				 				 				 				 				
Net income (loss)	  	 	69	 	 	 	64	 	 	 	(229	)	 	 	(20	)	 	 	(116	)	 	 	4	 	 	 	(112	)	
								
Net realized gains (losses)	  	 	10	 	 	 	17	 	 	 	12	 	 	 	37	 	 	 	76	 	 	 	7	 	 	 	83	 	
Tax expense (benefit) on net realized gains (losses)	  	 	2	 	 	 	5	 	 	 	1	 	 	 	—  	 	 	 	8	 	 	 	—  	 	 	 	8	 	
 	  				 				 				 				 				 				 				
Income (loss) excluding net realized gains (losses) (1)	  	$	61	 	 	$	52	 	 	$	(240	)	 	$	(57	)	 	$	(184	)	 	$	(3	)	 	$	(187	)	
 	  				 				 				 				 				 				 				
September 30, 2004	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Gross premiums written	  	$	2,234	 	 	$	1,292	 	 	$	334	 	 	$	—  	 	 	$	3,860	 	 	$	68	 	 	$	3,928	 	
Net premiums written	  	 	1,366	 	 	 	980	 	 	 	301	 	 	 	—  	 	 	 	2,647	 	 	 	68	 	 	 	2,715	 	
Net premiums earned	  	 	1,251	 	 	 	1,086	 	 	 	351	 	 	 	—  	 	 	 	2,688	 	 	 	111	 	 	 	2,799	 	
Losses and loss expenses	  	 	998	 	 	 	665	 	 	 	436	 	 	 	6	 	 	 	2,105	 	 	 	116	 	 	 	2,221	 	
Policy acquisition costs	  	 	121	 	 	 	199	 	 	 	65	 	 	 	—  	 	 	 	385	 	 	 	2	 	 	 	387	 	
Administrative expenses	  	 	110	 	 	 	139	 	 	 	16	 	 	 	36	 	 	 	301	 	 	 	4	 	 	 	305	 	
 	  				 				 				 				 				 				 				
Underwriting income (loss)	  	 	22	 	 	 	83	 	 	 	(166	)	 	 	(42	)	 	 	(103	)	 	 	(11	)	 	 	(114	)	
								
Life underwriting income (includes investment income)	  	 	—  	 	 	 	—  	 	 	 	13	 	 	 	—  	 	 	 	13	 	 	 	—  	 	 	 	13	 	
Net investment income - property and casualty	  	 	123	 	 	 	51	 	 	 	32	 	 	 	3	 	 	 	209	 	 	 	29	 	 	 	238	 	
Net realized gains (losses)	  	 	9	 	 	 	2	 	 	 	(35	)	 	 	(6	)	 	 	(30	)	 	 	(2	)	 	 	(32	)	
Interest expense	  	 	6	 	 	 	—  	 	 	 	—  	 	 	 	42	 	 	 	48	 	 	 	2	 	 	 	50	 	
Other (income) expense	  	 	(3	)	 	 	3	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	(14	)	 	 	(14	)	
Income tax expense (benefit)	  	 	48	 	 	 	34	 	 	 	(1	)	 	 	(17	)	 	 	64	 	 	 	1	 	 	 	65	 	
 	  				 				 				 				 				 				 				
Net income (loss)	  	 	103	 	 	 	99	 	 	 	(155	)	 	 	(70	)	 	 	(23	)	 	 	27	 	 	 	4	 	
								
Net realized gains (losses)	  	 	9	 	 	 	2	 	 	 	(35	)	 	 	(6	)	 	 	(30	)	 	 	(2	)	 	 	(32	)	
Tax expense (benefit) on net realized gains (losses)	  	 	2	 	 	 	1	 	 	 	—  	 	 	 	—  	 	 	 	3	 	 	 	(2	)	 	 	1	 	
 	  				 				 				 				 				 				 				
Income (loss) excluding net realized gains (losses) (1)	  	$	96	 	 	$	98	 	 	$	(120	)	 	$	(64	)	 	$	10	 	 	$	27	 	 	$	37	 	

(1)	See page 26 Non-GAAP Financial Measures.	

Segment 2005 Qtr	  	Page 8	

 
			
	  	ACE Limited	
	  	Consolidating Statement of Operations	
	  	Nine months ended September 30, 2005 and 2004	
	  	(in millions of U.S. dollars)	
 	  	(Unaudited)	

 	  	Insurance -
North
American
	  	Insurance -
Overseas
General
	  	Global
Reinsurance
	 	 	Corporate
& Other
	 	 	Consolidated
P&C
	  	Financial
Services
	 	 	ACE
Consolidated
	 	
September 30, 2005	  	 	 	  	 	 	  	 	 	 	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	
Gross premiums written	  	$	6,744	  	$	4,396	  	$	1,316	 	 	$	—  	 	 	$	12,456	  	$	389	 	 	$	12,845	 	
Net premiums written	  	 	4,144	  	 	3,190	  	 	1,270	 	 	 	—  	 	 	 	8,604	  	 	388	 	 	 	8,992	 	
Net premiums earned	  	 	3,942	  	 	3,200	  	 	1,136	 	 	 	—  	 	 	 	8,278	  	 	439	 	 	 	8,717	 	
Losses and loss expenses	  	 	3,013	  	 	1,907	  	 	1,048	 	 	 	8	 	 	 	5,976	  	 	463	 	 	 	6,439	 	
Policy acquisition costs	  	 	381	  	 	616	  	 	228	 	 	 	—  	 	 	 	1,225	  	 	5	 	 	 	1,230	 	
Administrative expenses	  	 	318	  	 	435	  	 	47	 	 	 	141	 	 	 	941	  	 	14	 	 	 	955	 	
 	  			  			  				 				 			  				 				
Underwriting income (loss)	  	 	230	  	 	242	  	 	(187	)	 	 	(149	)	 	 	136	  	 	(43	)	 	 	93	 	
								
Life underwriting income (includes investment income)	  	 	—  	  	 	—  	  	 	78	 	 	 	—  	 	 	 	78	  	 	—  	 	 	 	78	 	
Net investment income - property and casualty	  	 	412	  	 	236	  	 	124	 	 	 	12	 	 	 	784	  	 	97	 	 	 	881	 	
Net realized gains (losses)	  	 	13	  	 	69	  	 	23	 	 	 	(20	)	 	 	85	  	 	16	 	 	 	101	 	
Interest expense	  	 	16	  	 	—  	  	 	2	 	 	 	110	 	 	 	128	  	 	—  	 	 	 	128	 	
Other (income) expense	  	 	—  	  	 	16	  	 	3	 	 	 	—  	 	 	 	19	  	 	(55	)	 	 	(36	)	
Income tax expense (benefit)	  	 	171	  	 	122	  	 	6	 	 	 	(53	)	 	 	246	  	 	23	 	 	 	269	 	
 	  			  			  				 				 			  				 				
Net income (loss)	  	 	468	  	 	409	  	 	27	 	 	 	(214	)	 	 	690	  	 	102	 	 	 	792	 	
								
Net realized gains (losses)	  	 	13	  	 	69	  	 	23	 	 	 	(20	)	 	 	85	  	 	16	 	 	 	101	 	
Tax expense (benefit) on net realized gains (losses)	  	 	1	  	 	17	  	 	1	 	 	 	—  	 	 	 	19	  	 	1	 	 	 	20	 	
 	  			  			  				 				 			  				 				
Income (loss) excluding net realized gains (losses) (1)	  	$	456	  	$	357	  	$	5	 	 	$	(194	)	 	$	624	  	$	87	 	 	$	711	 	
 	  			  			  				 				 			  				 				
September 30, 2004	  	 	 	  	 	 	  	 	 	 	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	
Gross premiums written	  	$	6,241	  	$	4,466	  	$	1,281	 	 	$	—  	 	 	$	11,988	  	$	291	 	 	$	12,279	 	
Net premiums written	  	 	3,907	  	 	3,256	  	 	1,238	 	 	 	—  	 	 	 	8,401	  	 	289	 	 	 	8,690	 	
Net premiums earned	  	 	3,436	  	 	3,174	  	 	1,030	 	 	 	—  	 	 	 	7,640	  	 	424	 	 	 	8,064	 	
Losses and loss expenses	  	 	2,532	  	 	1,878	  	 	769	 	 	 	6	 	 	 	5,185	  	 	291	 	 	 	5,476	 	
Policy acquisition costs	  	 	333	  	 	579	  	 	203	 	 	 	—  	 	 	 	1,115	  	 	22	 	 	 	1,137	 	
Administrative expenses	  	 	323	  	 	416	  	 	50	 	 	 	98	 	 	 	887	  	 	38	 	 	 	925	 	
 	  			  			  				 				 			  				 				
Underwriting income (loss)	  	 	248	  	 	301	  	 	8	 	 	 	(104	)	 	 	453	  	 	73	 	 	 	526	 	
								
Life underwriting income (includes investment income)	  	 	—  	  	 	—  	  	 	35	 	 	 	—  	 	 	 	35	  	 	—  	 	 	 	35	 	
Net investment income - property and casualty	  	 	337	  	 	159	  	 	88	 	 	 	5	 	 	 	589	  	 	118	 	 	 	707	 	
Net realized gains (losses)	  	 	91	  	 	29	  	 	(33	)	 	 	9	 	 	 	96	  	 	(29	)	 	 	67	 	
Interest expense	  	 	16	  	 	—  	  	 	—  	 	 	 	119	 	 	 	135	  	 	5	 	 	 	140	 	
Other (income) expense	  	 	3	  	 	10	  	 	—  	 	 	 	(1	)	 	 	12	  	 	(10	)	 	 	2	 	
Income tax expense (benefit)	  	 	182	  	 	145	  	 	3	 	 	 	(44	)	 	 	286	  	 	32	 	 	 	318	 	
 	  			  			  				 				 			  				 				
Net income (loss)	  	 	475	  	 	334	  	 	95	 	 	 	(164	)	 	 	740	  	 	135	 	 	 	875	 	
								
Net realized gains (losses)	  	 	91	  	 	29	  	 	(33	)	 	 	9	 	 	 	96	  	 	(29	)	 	 	67	 	
Tax expense (benefit) on net realized gains (losses)	  	 	17	  	 	9	  	 	—  	 	 	 	—  	 	 	 	26	  	 	6	 	 	 	32	 	
 	  			  			  				 				 			  				 				
Income (loss) excluding net realized gains (losses) (1)	  	$	401	  	$	314	  	$	128	 	 	$	(173	)	 	$	670	  	$	170	 	 	$	840	 	

(1)	See page 26 Non-GAAP Financial Measures.	

Segment 2005 YTD	  	Page 9	

 
			
	  	ACE Limited	
	  	Segment Results - Third Quarter Catastrophe Loss Charges	
	  	(in millions of U.S. dollars)	
	  	(Unaudited)	
 
Third Quarter Catastrophe Loss Charges - 2005

 	  	Insurance -
North
American
	 	 	Insurance -
Overseas
General
	 	 	Global
Reinsurance
	 	 	Consolidated
P&C
	 	 	Financial
Services
	 	 	Total
	 	 	Total impact
after income
tax
	
Catastrophe Loss Charges- By Event	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Gross loss	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	$	2,369	 	 	 	 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net loss	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Hurricane - Dennis	  	$	12	 	 	$	5	 	 	$	25	 	 	$	42	 	 	$	—  	 	 	$	42	 	 	$	35	
Hurricane - Katrina and New Orleans flood	  	 	139	 	 	 	70	 	 	 	319	 	 	 	528	 	 	 	240	 	 	 	768	 	 	 	558	
Hurricane - Rita	  	 	52	 	 	 	46	 	 	 	69	 	 	 	167	 	 	 	—  	 	 	 	167	 	 	 	131	
Other (1)	  	 	—  	 	 	 	—  	 	 	 	19	 	 	 	19	 	 	 	—  	 	 	 	19	 	 	 	18	
 	  				 				 				 				 				 				 			
Total	  	$	203	 	 	$	121	 	 	$	432	 	 	$	756	 	 	$	240	 	 	$	996	 	 	$	742	
 	  				 				 				 				 				 				 			
Reinstatement premiums (earned) expensed	  	$	59	 	 	$	36	 	 	$	(27	)	 	$	68	 	 	$	—  	 	 	$	68	 	 	 	 	
Premiums earned on multi-year contracts	  	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	(163	)	 	 	(163	)	 	 	 	
 	  				 				 				 				 				 				 	 	 	
Net premium (earned) expensed	  	$	59	 	 	$	36	 	 	$	(27	)	 	$	68	 	 	$	(163	)	 	$	(95	)	 	 	 	
 	  				 				 				 				 				 				 	 	 	
Total impact before income tax	  	$	262	 	 	$	157	 	 	$	405	 	 	$	824	 	 	$	77	 	 	$	901	 	 	 	 	
Income tax benefit	  	 	(87	)	 	 	(47	)	 	 	(25	)	 	 	(159	)	 	 	—  	 	 	 	(159	)	 	 	 	
 	  				 				 				 				 				 				 	 	 	
Total impact after income tax	  	$	175	 	 	$	110	 	 	$	380	 	 	$	665	 	 	$	77	 	 	$	742	 	 	 	 	
 	  				 				 				 				 				 				 	 	 	
Effective tax rate	  	 	33	%	 	 	30	%	 	 	6	%	 	 	19	%	 	 	0	%	 	 	18	%	 	 	 	
	
(1)    Includes Ophelia, Nabi and European floods.	
	
 Third Quarter Catastrophe Loss Charges - 2004	
								
Net loss	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Hurricane - Charley	  	$	31	 	 	$	—  	 	 	$	65	 	 	$	96	 	 	$	—  	 	 	$	96	 	 	 	 	
Hurricane - Frances	  	 	22	 	 	 	6	 	 	 	48	 	 	 	76	 	 	 	5	 	 	 	81	 	 	 	 	
Hurricane - Ivan	  	 	40	 	 	 	20	 	 	 	76	 	 	 	136	 	 	 	5	 	 	 	141	 	 	 	 	
Hurricane - Jeanne	  	 	33	 	 	 	18	 	 	 	63	 	 	 	114	 	 	 	1	 	 	 	115	 	 	 	 	
Typhoons	  	 	—  	 	 	 	9	 	 	 	26	 	 	 	35	 	 	 	—  	 	 	 	35	 	 	 	 	
 	  				 				 				 				 				 				 	 	 	
Total	  	$	126	 	 	$	53	 	 	$	278	 	 	$	457	 	 	$	11	 	 	$	468	 	 	 	 	
 	  				 				 				 				 				 				 	 	 	
Reinstatement premiums (earned) expensed	  	$	13	 	 	$	13	 	 	$	(15	)	 	$	11	 	 	$	—  	 	 	$	11	 	 	 	 	
 	  				 				 				 				 				 				 	 	 	
Total impact before income tax	  	$	139	 	 	$	66	 	 	$	263	 	 	$	468	 	 	$	11	 	 	$	479	 	 	 	 	
Income tax benefit	  	 	(41	)	 	 	(21	)	 	 	(11	)	 	 	(73	)	 	 	—  	 	 	 	(73	)	 	 	 	
 	  				 				 				 				 				 				 	 	 	
Total impact after income tax	  	$	98	 	 	$	45	 	 	$	252	 	 	$	395	 	 	$	11	 	 	$	406	 	 	 	 	
 	  				 				 				 				 				 				 	 	 	
Effective tax rate	  	 	29	%	 	 	32	%	 	 	4	%	 	 	16	%	 	 	0	%	 	 	15	%	 	 	 	

Catastrophe Losses	  	Page 10	

 
			
	  	ACE Limited	
	  	Third Quarter Catastrophe Loss Analysis (1) 	
	  	Three months ended September 30, 2005 and 2004	
	  	(in millions of U.S. dollars)	
 	  	(Unaudited)	

 	  	Insurance -
North
American
	 	 	Insurance -
Overseas
General
	 	 	Global
Reinsurance
	 	 	Consolidated
P&C
	 	 	Financial
Services
	 	 	ACE
Consolidated
	 	
September 30, 2005	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net Premium Written as reported	  	$	1,307	 	 	$	933	 	 	$	380	 	 	$	2,620	 	 	$	212	 	 	$	2,832	 	
Q3 Catastrophe Impact	  	 	59	 	 	 	36	 	 	 	(27	)	 	 	68	 	 	 	(131	)	 	 	(63	)	
 	  				 				 				 				 				 				
Net Premium Written excluding Q3 Catastrophes	  	 	1,366	 	 	 	969	 	 	 	353	 	 	 	2,688	 	 	 	81	 	 	 	2,769	 	
							
Net Premium Earned as reported	  	$	1,338	 	 	$	1,031	 	 	$	408	 	 	$	2,777	 	 	$	257	 	 	$	3,034	 	
Q3 Catastrophe Impact	  	 	59	 	 	 	36	 	 	 	(27	)	 	 	68	 	 	 	(163	)	 	 	(95	)	
 	  				 				 				 				 				 				
Net Premium Earned excluding Q3 Catastrophes	  	 	1,397	 	 	 	1,067	 	 	 	381	 	 	 	2,845	 	 	 	94	 	 	 	2,939	 	
							
Loss Ratio as reported	  	 	87.7	%	 	 	66.7	%	 	 	156.2	%	 	 	89.9	%	 	 	120.7	%	 	 	92.5	%	
Q3 Catastrophe Impact	  	 	18.3	%	 	 	13.6	%	 	 	102.5	%	 	 	28.7	%	 	 	46.3	%	 	 	30.9	%	
 	  				 				 				 				 				 				
Loss Ratio excluding Q3 Catastrophes	  	 	69.4	%	 	 	53.1	%	 	 	53.7	%	 	 	61.2	%	 	 	74.4	%	 	 	61.6	%	
							
Expense Ratio as reported	  	 	17.2	%	 	 	34.2	%	 	 	23.1	%	 	 	26.0	%	 	 	2.3	%	 	 	24.0	%	
Q3 Catastrophe Impact	  	 	0.7	%	 	 	1.2	%	 	 	-1.6	%	 	 	0.6	%	 	 	-4.0	%	 	 	-0.8	%	
 	  				 				 				 				 				 				
Expense Ratio excluding Q3 Catastrophes	  	 	16.5	%	 	 	33.0	%	 	 	24.7	%	 	 	25.4	%	 	 	6.3	%	 	 	24.8	%	
							
Combined Ratio as reported	  	 	104.9	%	 	 	100.9	%	 	 	179.3	%	 	 	115.9	%	 	 	123.0	%	 	 	116.5	%	
Q3 Catastrophe Impact	  	 	19.0	%	 	 	14.8	%	 	 	100.9	%	 	 	29.3	%	 	 	42.3	%	 	 	30.1	%	
 	  				 				 				 				 				 				
Combined Ratio excluding Q3 Catastrophes	  	 	85.9	%	 	 	86.1	%	 	 	78.4	%	 	 	86.6	%	 	 	80.7	%	 	 	86.4	%	
							
September 30, 2004	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net Premium Written as reported	  	$	1,366	 	 	$	980	 	 	$	301	 	 	$	2,647	 	 	$	68	 	 	$	2,715	 	
Q3 Catastrophe Impact	  	 	13	 	 	 	13	 	 	 	(15	)	 	 	11	 	 	 	—  	 	 	 	11	 	
 	  				 				 				 				 				 				
Net Premium Written excluding Q3 Catastrophes	  	 	1,379	 	 	 	993	 	 	 	286	 	 	 	2,658	 	 	 	68	 	 	 	2,726	 	
							
Net Premium Earned as reported	  	$	1,251	 	 	$	1,086	 	 	$	351	 	 	$	2,688	 	 	$	111	 	 	$	2,799	 	
Q3 Catastrophe Impact	  	 	13	 	 	 	13	 	 	 	(15	)	 	 	11	 	 	 	—  	 	 	 	11	 	
 	  				 				 				 				 				 				
Net Premium Earned excluding Q3 Catastrophes	  	 	1,264	 	 	 	1,099	 	 	 	336	 	 	 	2,699	 	 	 	111	 	 	 	2,810	 	
							
Loss Ratio as reported	  	 	79.8	%	 	 	61.2	%	 	 	123.9	%	 	 	78.3	%	 	 	104.7	%	 	 	79.4	%	
Q3 Catastrophe Impact	  	 	10.7	%	 	 	5.6	%	 	 	77.1	%	 	 	17.2	%	 	 	9.9	%	 	 	17.0	%	
 	  				 				 				 				 				 				
Loss Ratio excluding Q3 Catastrophes	  	 	69.1	%	 	 	55.6	%	 	 	46.8	%	 	 	61.1	%	 	 	94.8	%	 	 	62.4	%	
							
Expense Ratio as reported	  	 	18.4	%	 	 	31.1	%	 	 	23.2	%	 	 	25.5	%	 	 	5.0	%	 	 	24.7	%	
Q3 Catastrophe Impact	  	 	0.2	%	 	 	0.3	%	 	 	-1.0	%	 	 	0.1	%	 	 	0.0	%	 	 	0.1	%	
 	  				 				 				 				 				 				
Expense Ratio excluding Q3 Catastrophes	  	 	18.2	%	 	 	30.8	%	 	 	24.2	%	 	 	25.4	%	 	 	5.0	%	 	 	24.6	%	
							
Combined Ratio as reported	  	 	98.2	%	 	 	92.3	%	 	 	147.1	%	 	 	103.8	%	 	 	109.7	%	 	 	104.1	%	
Q3 Catastrophe Impact	  	 	10.9	%	 	 	5.9	%	 	 	76.1	%	 	 	17.3	%	 	 	9.9	%	 	 	17.1	%	
 	  				 				 				 				 				 				
Combined Ratio excluding Q3 Catastrophes	  	 	87.3	%	 	 	86.4	%	 	 	71.0	%	 	 	86.5	%	 	 	99.8	%	 	 	87.0	%	
 
(1)	See page 26 Non-GAAP Financial Measures.	

Catastrophe Losses (2)	  	Page 11	

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

 	  	3Q-05
	 	 	2Q-05
	 	 	1Q-05
	 	 	4Q-04
	 	 	3Q-04
	 	 	YTD
2005
	 	 	YTD
2004
	 	 	Full Year
2004
	 	
Gross premiums written	  	$	2,250	 	 	$	2,344	 	 	$	2,150	 	 	$	1,885	 	 	$	2,234	 	 	$	6,744	 	 	$	6,241	 	 	$	8,126	 	
Net premiums written	  	 	1,307	 	 	 	1,412	 	 	 	1,425	 	 	 	1,194	 	 	 	1,366	 	 	 	4,144	 	 	 	3,907	 	 	 	5,101	 	
Net premiums earned	  	 	1,338	 	 	 	1,319	 	 	 	1,285	 	 	 	1,243	 	 	 	1,251	 	 	 	3,942	 	 	 	3,436	 	 	 	4,679	 	
Losses and loss expenses	  	 	1,173	 	 	 	948	 	 	 	892	 	 	 	1,366	 	 	 	998	 	 	 	3,013	 	 	 	2,532	 	 	 	3,898	 	
Policy acquisition costs	  	 	134	 	 	 	130	 	 	 	117	 	 	 	114	 	 	 	121	 	 	 	381	 	 	 	333	 	 	 	447	 	
Administrative expenses	  	 	96	 	 	 	111	 	 	 	111	 	 	 	128	 	 	 	110	 	 	 	318	 	 	 	323	 	 	 	451	 	
 	  				 				 				 				 				 				 				 				
Underwriting income (loss)	  	 	(65	)	 	 	130	 	 	 	165	 	 	 	(365	)	 	 	22	 	 	 	230	 	 	 	248	 	 	 	(117	)	
									
Net investment income	  	 	139	 	 	 	142	 	 	 	131	 	 	 	132	 	 	 	123	 	 	 	412	 	 	 	337	 	 	 	469	 	
Net realized gains (losses)	  	 	10	 	 	 	14	 	 	 	(11	)	 	 	35	 	 	 	9	 	 	 	13	 	 	 	91	 	 	 	126	 	
Interest expense	  	 	6	 	 	 	5	 	 	 	5	 	 	 	5	 	 	 	6	 	 	 	16	 	 	 	16	 	 	 	21	 	
Other (income) expense	  	 	(1	)	 	 	1	 	 	 	—  	 	 	 	2	 	 	 	(3	)	 	 	—  	 	 	 	3	 	 	 	5	 	
Income tax expense (benefit)	  	 	10	 	 	 	81	 	 	 	80	 	 	 	(100	)	 	 	48	 	 	 	171	 	 	 	182	 	 	 	82	 	
 	  				 				 				 				 				 				 				 				
Net income (loss)	  	 	69	 	 	 	199	 	 	 	200	 	 	 	(105	)	 	 	103	 	 	 	468	 	 	 	475	 	 	 	370	 	
									
Net realized gains (losses)	  	 	10	 	 	 	14	 	 	 	(11	)	 	 	35	 	 	 	9	 	 	 	13	 	 	 	91	 	 	 	126	 	
Tax expense on net realized gains (losses)	  	 	2	 	 	 	2	 	 	 	(3	)	 	 	5	 	 	 	2	 	 	 	1	 	 	 	17	 	 	 	22	 	
 	  				 				 				 				 				 				 				 				
Income excluding net realized gains (losses) (1)	  	$	61	 	 	$	187	 	 	$	208	 	 	$	(135	)	 	$	96	 	 	$	456	 	 	$	401	 	 	$	266	 	
 	  				 				 				 				 				 				 				 				
Combined ratio	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Loss and loss expense ratio	  	 	87.7	%	 	 	71.9	%	 	 	69.4	%	 	 	109.9	%	 	 	79.8	%	 	 	76.4	%	 	 	73.7	%	 	 	83.3	%	
Policy acquisition cost ratio	  	 	10.0	%	 	 	9.8	%	 	 	9.1	%	 	 	9.1	%	 	 	9.7	%	 	 	9.7	%	 	 	9.7	%	 	 	9.6	%	
Administrative expense ratio	  	 	7.2	%	 	 	8.4	%	 	 	8.6	%	 	 	10.3	%	 	 	8.7	%	 	 	8.1	%	 	 	9.4	%	 	 	9.6	%	
 	  				 				 				 				 				 				 				 				
Combined ratio	  	 	104.9	%	 	 	90.1	%	 	 	87.1	%	 	 	129.3	%	 	 	98.2	%	 	 	94.2	%	 	 	92.8	%	 	 	102.5	%	
 	  				 				 				 				 				 				 				 				
Large losses and other items (before tax)	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Asbestos, environmental and other run-off losses	  	$	—  	 	 	$	—  	 	 	$	—  	 	 	$	459	 	 	$	—  	 	 	$	—  	 	 	$	—  	 	 	$	459	 	
Catastrophe and other large losses (before tax)	  	$	203	 	 	$	—  	 	 	$	—  	 	 	$	—  	 	 	$	126	 	 	$	203	 	 	$	126	 	 	$	126	 	
Prior period development	  	$	22	 	 	$	51	 	 	$	22	 	 	$	96	 	 	$	42	 	 	$	95	 	 	$	99	 	 	$	195	 	
									
% Change versus prior year period	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net premiums written	  	 	-4	%	 	 	6	%	 	 	18	%	 	 	12	%	 	 	28	%	 	 	6	%	 	 	31	%	 	 	26	%	
Net premiums earned	  	 	7	%	 	 	12	%	 	 	28	%	 	 	23	%	 	 	26	%	 	 	15	%	 	 	28	%	 	 	27	%	
									
Other ratios	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net premiums written/gross premiums written	  	 	58	%	 	 	60	%	 	 	66	%	 	 	63	%	 	 	61	%	 	 	61	%	 	 	63	%	 	 	63	%	
 
(1)	See page 26 Non-GAAP Financial Measures.	

Insurance-North American	  	Page 12	

			
	  	ACE Limited	
	  	Segment Results - Consecutive Quarters - 2	
	  	(in millions of U.S. dollars)	
	  	(Unaudited)	
 
Insurance - Overseas General

 	  	3Q-05
	 	 	2Q-05
	 	 	1Q-05
	 	 	4Q-04
	 	 	3Q-04
	 	 	YTD
2005
	 	 	YTD
2004
	 	 	Full Year
2004
	 	
Gross premiums written	  	$	1,332	 	 	$	1,428	 	 	$	1,636	 	 	$	1,391	 	 	$	1,292	 	 	$	4,396	 	 	$	4,466	 	 	$	5,857	 	
Net premiums written	  	 	933	 	 	 	1,062	 	 	 	1,195	 	 	 	1,085	 	 	 	980	 	 	 	3,190	 	 	 	3,256	 	 	 	4,341	 	
Net premiums earned	  	 	1,031	 	 	 	1,081	 	 	 	1,088	 	 	 	1,128	 	 	 	1,086	 	 	 	3,200	 	 	 	3,174	 	 	 	4,302	 	
Losses and loss expenses	  	 	687	 	 	 	610	 	 	 	610	 	 	 	548	 	 	 	665	 	 	 	1,907	 	 	 	1,878	 	 	 	2,426	 	
Policy acquisition costs	  	 	207	 	 	 	217	 	 	 	192	 	 	 	223	 	 	 	199	 	 	 	616	 	 	 	579	 	 	 	802	 	
Administrative expenses	  	 	145	 	 	 	142	 	 	 	148	 	 	 	135	 	 	 	139	 	 	 	435	 	 	 	416	 	 	 	551	 	
 	  				 				 				 				 				 				 				 				
Underwriting income	  	 	(8	)	 	 	112	 	 	 	138	 	 	 	222	 	 	 	83	 	 	 	242	 	 	 	301	 	 	 	523	 	
									
Net investment income	  	 	82	 	 	 	80	 	 	 	74	 	 	 	65	 	 	 	51	 	 	 	236	 	 	 	159	 	 	 	224	 	
Net realized gains (losses)	  	 	17	 	 	 	34	 	 	 	18	 	 	 	18	 	 	 	2	 	 	 	69	 	 	 	29	 	 	 	47	 	
Interest expense	  	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	
Other (income) expense	  	 	5	 	 	 	5	 	 	 	6	 	 	 	15	 	 	 	3	 	 	 	16	 	 	 	10	 	 	 	25	 	
Income tax expense	  	 	22	 	 	 	48	 	 	 	52	 	 	 	85	 	 	 	34	 	 	 	122	 	 	 	145	 	 	 	230	 	
 	  				 				 				 				 				 				 				 				
Net income	  	 	64	 	 	 	173	 	 	 	172	 	 	 	205	 	 	 	99	 	 	 	409	 	 	 	334	 	 	 	539	 	
									
Net realized gains (losses)	  	 	17	 	 	 	34	 	 	 	18	 	 	 	18	 	 	 	2	 	 	 	69	 	 	 	29	 	 	 	47	 	
Tax expense on net realized gains (losses)	  	 	5	 	 	 	7	 	 	 	5	 	 	 	5	 	 	 	1	 	 	 	17	 	 	 	9	 	 	 	14	 	
 	  				 				 				 				 				 				 				 				
Income excluding net realized gains (losses) (1)	  	$	52	 	 	$	146	 	 	$	159	 	 	$	192	 	 	$	98	 	 	$	357	 	 	$	314	 	 	$	506	 	
 	  				 				 				 				 				 				 				 				
Combined ratio	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Loss and loss expense ratio	  	 	66.7	%	 	 	56.4	%	 	 	56.1	%	 	 	48.6	%	 	 	61.2	%	 	 	59.6	%	 	 	59.2	%	 	 	56.4	%	
Policy acquisition cost ratio	  	 	20.1	%	 	 	20.1	%	 	 	17.7	%	 	 	19.9	%	 	 	18.3	%	 	 	19.2	%	 	 	18.2	%	 	 	18.7	%	
Administrative expense ratio	  	 	14.1	%	 	 	13.2	%	 	 	13.6	%	 	 	11.9	%	 	 	12.8	%	 	 	13.6	%	 	 	13.1	%	 	 	12.8	%	
 	  				 				 				 				 				 				 				 				
Combined ratio	  	 	100.9	%	 	 	89.7	%	 	 	87.4	%	 	 	80.4	%	 	 	92.3	%	 	 	92.4	%	 	 	90.5	%	 	 	87.9	%	
 	  				 				 				 				 				 				 				 				
Large losses and other items	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Asbestos, environmental and other run-off losses	  	$	—  	 	 	$	—  	 	 	$	—  	 	 	$	6	 	 	$	—  	 	 	$	—  	 	 	$	—  	 	 	$	6	 	
Catastrophe and other large losses (before tax)	  	$	121	 	 	$	—  	 	 	$	—  	 	 	$	—  	 	 	$	53	 	 	$	121	 	 	$	53	 	 	$	53	 	
Prior period development	  	$	10	 	 	$	(21	)	 	$	7	 	 	$	22	 	 	$	(20	)	 	$	(4	)	 	$	(45	)	 	$	(23	)	
									
% Change versus prior year period	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net premiums written	  	 	-5	%	 	 	-3	%	 	 	1	%	 	 	10	%	 	 	13	%	 	 	-2	%	 	 	17	%	 	 	15	%	
Net premiums earned	  	 	-5	%	 	 	1	%	 	 	7	%	 	 	11	%	 	 	21	%	 	 	1	%	 	 	20	%	 	 	17	%	
									
Other ratios	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net premiums written/gross premiums written	  	 	70	%	 	 	74	%	 	 	73	%	 	 	78	%	 	 	76	%	 	 	73	%	 	 	73	%	 	 	74	%	
 
(1)	See page 26 Non-GAAP Financial Measures.	

Insurance-Overseas General	  	Page 13	

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

 	  	3Q-05
	 	 	2Q-05
	 	 	1Q-05
	 	 	4Q-04
	 	 	3Q-04
	 	 	YTD
2005
	 	 	YTD
2004
	 	 	Full Year
2004
	 	
Property and casualty	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Gross premiums written	  	$	411	 	 	$	369	 	 	$	536	 	 	$	286	 	 	$	334	 	 	$	1,316	 	 	$	1,281	 	 	$	1,567	 	
Net premiums written	  	 	380	 	 	 	363	 	 	 	527	 	 	 	280	 	 	 	301	 	 	 	1,270	 	 	 	1,238	 	 	 	1,518	 	
Net premiums earned	  	 	408	 	 	 	372	 	 	 	356	 	 	 	359	 	 	 	351	 	 	 	1,136	 	 	 	1,030	 	 	 	1,389	 	
Losses and loss expenses	  	 	637	 	 	 	206	 	 	 	205	 	 	 	204	 	 	 	436	 	 	 	1,048	 	 	 	769	 	 	 	973	 	
Policy acquisition costs	  	 	78	 	 	 	77	 	 	 	73	 	 	 	68	 	 	 	65	 	 	 	228	 	 	 	203	 	 	 	271	 	
Administrative expenses	  	 	16	 	 	 	16	 	 	 	15	 	 	 	15	 	 	 	16	 	 	 	47	 	 	 	50	 	 	 	65	 	
 	  				 				 				 				 				 				 				 				
P&C underwriting income (loss)	  	 	(323	)	 	 	73	 	 	 	63	 	 	 	72	 	 	 	(166	)	 	 	(187	)	 	 	8	 	 	 	80	 	
									
Life	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Gross premiums written	  	 	57	 	 	 	57	 	 	 	58	 	 	 	55	 	 	 	60	 	 	 	172	 	 	 	169	 	 	 	224	 	
Net premiums written	  	 	57	 	 	 	57	 	 	 	58	 	 	 	55	 	 	 	59	 	 	 	172	 	 	 	165	 	 	 	220	 	
Net premiums earned	  	 	57	 	 	 	57	 	 	 	58	 	 	 	55	 	 	 	60	 	 	 	172	 	 	 	165	 	 	 	220	 	
Life and annuity benefits	  	 	33	 	 	 	37	 	 	 	35	 	 	 	38	 	 	 	48	 	 	 	105	 	 	 	134	 	 	 	172	 	
Policy acquisition costs	  	 	5	 	 	 	4	 	 	 	4	 	 	 	5	 	 	 	6	 	 	 	13	 	 	 	17	 	 	 	22	 	
Administrative expenses	  	 	2	 	 	 	1	 	 	 	2	 	 	 	1	 	 	 	1	 	 	 	5	 	 	 	3	 	 	 	4	 	
Net investment income	  	 	10	 	 	 	10	 	 	 	9	 	 	 	9	 	 	 	8	 	 	 	29	 	 	 	24	 	 	 	33	 	
 	  				 				 				 				 				 				 				 				
Life underwriting income	  	 	27	 	 	 	25	 	 	 	26	 	 	 	20	 	 	 	13	 	 	 	78	 	 	 	35	 	 	 	55	 	
									
Total underwriting income (loss)	  	 	(296	)	 	 	98	 	 	 	89	 	 	 	92	 	 	 	(153	)	 	 	(109	)	 	 	43	 	 	 	135	 	
Net investment income - property and casualty	  	 	45	 	 	 	40	 	 	 	39	 	 	 	38	 	 	 	32	 	 	 	124	 	 	 	88	 	 	 	126	 	
Net realized gains (losses)	  	 	12	 	 	 	33	 	 	 	(22	)	 	 	67	 	 	 	(35	)	 	 	23	 	 	 	(33	)	 	 	34	 	
Interest expense	  	 	1	 	 	 	—  	 	 	 	1	 	 	 	—  	 	 	 	—  	 	 	 	2	 	 	 	—  	 	 	 	—  	 	
Other (income) expense	  	 	1	 	 	 	1	 	 	 	1	 	 	 	(1	)	 	 	—  	 	 	 	3	 	 	 	—  	 	 	 	(1	)	
Income tax expense (benefit)	  	 	(12	)	 	 	9	 	 	 	9	 	 	 	11	 	 	 	(1	)	 	 	6	 	 	 	3	 	 	 	14	 	
 	  				 				 				 				 				 				 				 				
Net income (loss)	  	 	(229	)	 	 	161	 	 	 	95	 	 	 	187	 	 	 	(155	)	 	 	27	 	 	 	95	 	 	 	282	 	
									
Net realized gains (losses)	  	 	12	 	 	 	33	 	 	 	(22	)	 	 	67	 	 	 	(35	)	 	 	23	 	 	 	(33	)	 	 	34	 	
Tax expense on net realized gains (losses)	  	 	1	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	1	 	 	 	—  	 	 	 	—  	 	
 	  				 				 				 				 				 				 				 				
Income (loss) excluding net realized gains (losses) (1)	  	$	(240	)	 	$	128	 	 	$	117	 	 	$	120	 	 	$	(120	)	 	$	5	 	 	$	128	 	 	$	248	 	
 	  				 				 				 				 				 				 				 				
P&C combined ratio	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Loss and loss expense ratio	  	 	156.2	%	 	 	55.4	%	 	 	57.6	%	 	 	57.0	%	 	 	123.9	%	 	 	92.3	%	 	 	74.6	%	 	 	70.1	%	
Policy acquisition cost ratio	  	 	19.1	%	 	 	20.7	%	 	 	20.5	%	 	 	19.0	%	 	 	18.6	%	 	 	20.1	%	 	 	19.7	%	 	 	19.5	%	
Administrative expense ratio	  	 	4.0	%	 	 	4.1	%	 	 	4.3	%	 	 	4.0	%	 	 	4.6	%	 	 	4.1	%	 	 	4.9	%	 	 	4.6	%	
 	  				 				 				 				 				 				 				 				
P&C combined ratio	  	 	179.3	%	 	 	80.2	%	 	 	82.4	%	 	 	80.0	%	 	 	147.1	%	 	 	116.5	%	 	 	99.2	%	 	 	94.2	%	
 	  				 				 				 				 				 				 				 				
Large losses and other items	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Catastrophe and other large losses (before tax)	  	$	432	 	 	$	—  	 	 	$	3	 	 	$	31	 	 	$	278	 	 	$	435	 	 	$	278	 	 	$	309	 	
Prior period development	  	$	(5	)	 	$	(3	)	 	$	—  	 	 	$	(13	)	 	$	(22	)	 	$	(8	)	 	$	(48	)	 	$	(61	)	
 
(1)	See page 26 Non-GAAP Financial Measures.	

Global Reinsurance	  	Page 14	

 
			
	  	ACE Limited	
	  	Segment Results - Consecutive Quarters - 2	
	  	(in millions of U.S. dollars)	
	  	(Unaudited)	
 
Global Reinsurance - Property & Casualty

 	  	3Q-05
	 	 	2Q-05
	 	 	1Q-05
	 	 	4Q-04
	 	 	3Q-04
	 	 	YTD
2005
	 	 	YTD
2004
	 	 	Full Year
2004
	 	
% Change versus prior year period	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net premiums written	  	 	26	%	 	 	-1	%	 	 	-8	%	 	 	27	%	 	 	37	%	 	 	3	%	 	 	23	%	 	 	24	%	
Net premiums earned	  	 	16	%	 	 	7	%	 	 	7	%	 	 	16	%	 	 	27	%	 	 	10	%	 	 	30	%	 	 	26	%	
									
Other ratios	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net premiums written/gross premiums written	  	 	92	%	 	 	98	%	 	 	98	%	 	 	98	%	 	 	90	%	 	 	97	%	 	 	97	%	 	 	97	%	
									
Global Reinsurance - By Division	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
									
Gross premiums written	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Tempest Europe	  	$	78	 	 	$	49	 	 	$	105	 	 	$	64	 	 	$	76	 	 	$	232	 	 	$	262	 	 	$	326	 	
Tempest USA	  	 	234	 	 	 	228	 	 	 	248	 	 	 	204	 	 	 	196	 	 	 	710	 	 	 	677	 	 	 	881	 	
Tempest Bermuda	  	 	99	 	 	 	92	 	 	 	183	 	 	 	18	 	 	 	62	 	 	 	374	 	 	 	342	 	 	 	360	 	
 	  				 				 				 				 				 				 				 				
Total	  	$	411	 	 	$	369	 	 	$	536	 	 	$	286	 	 	$	334	 	 	$	1,316	 	 	$	1,281	 	 	$	1,567	 	
 	  				 				 				 				 				 				 				 				
Net premiums written	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Tempest Europe	  	$	74	 	 	$	46	 	 	$	102	 	 	$	61	 	 	$	74	 	 	$	222	 	 	$	250	 	 	$	311	 	
Tempest USA	  	 	231	 	 	 	227	 	 	 	247	 	 	 	204	 	 	 	195	 	 	 	705	 	 	 	673	 	 	 	877	 	
Tempest Bermuda	  	 	75	 	 	 	90	 	 	 	178	 	 	 	15	 	 	 	32	 	 	 	343	 	 	 	315	 	 	 	330	 	
 	  				 				 				 				 				 				 				 				
Total	  	$	380	 	 	$	363	 	 	$	527	 	 	$	280	 	 	$	301	 	 	$	1,270	 	 	$	1,238	 	 	$	1,518	 	
 	  				 				 				 				 				 				 				 				
Net premiums earned	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Tempest Europe	  	$	79	 	 	$	66	 	 	$	76	 	 	$	76	 	 	$	77	 	 	$	221	 	 	$	227	 	 	$	303	 	
Tempest USA	  	 	223	 	 	 	230	 	 	 	212	 	 	 	206	 	 	 	185	 	 	 	665	 	 	 	545	 	 	 	751	 	
Tempest Bermuda	  	 	106	 	 	 	76	 	 	 	68	 	 	 	77	 	 	 	89	 	 	 	250	 	 	 	258	 	 	 	335	 	
 	  				 				 				 				 				 				 				 				
Total	  	$	408	 	 	$	372	 	 	$	356	 	 	$	359	 	 	$	351	 	 	$	1,136	 	 	$	1,030	 	 	$	1,389	 	
 	  				 				 				 				 				 				 				 				
Net premiums written/gross premiums written	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Tempest Europe	  	 	95	%	 	 	94	%	 	 	97	%	 	 	95	%	 	 	97	%	 	 	96	%	 	 	95	%	 	 	95	%	
Tempest USA	  	 	99	%	 	 	100	%	 	 	100	%	 	 	100	%	 	 	99	%	 	 	99	%	 	 	99	%	 	 	100	%	
Tempest Bermuda	  	 	76	%	 	 	98	%	 	 	97	%	 	 	83	%	 	 	52	%	 	 	92	%	 	 	92	%	 	 	92	%	
 	  				 				 				 				 				 				 				 				
Total NPW/GPW	  	 	92	%	 	 	98	%	 	 	98	%	 	 	98	%	 	 	90	%	 	 	97	%	 	 	97	%	 	 	97	%	

			
Global Reinsurance 2	  	Page 15	

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

 	  	3Q-05
	 	 	2Q-05
	 	 	1Q-05
	 	 	4Q-04
	 	 	3Q-04
	 	 	YTD
2005
	 	 	YTD
2004
	 	 	Full Year
2004
	 	
Gross premiums written	  	$	211	 	 	$	15	 	 	$	163	 	 	$	29	 	 	$	68	 	 	$	389	 	 	$	291	 	 	$	320	 	
Net premiums written	  	 	212	 	 	 	15	 	 	 	161	 	 	 	27	 	 	 	68	 	 	 	388	 	 	 	289	 	 	 	316	 	
Net premiums earned	  	 	257	 	 	 	92	 	 	 	90	 	 	 	96	 	 	 	111	 	 	 	439	 	 	 	424	 	 	 	520	 	
Losses and loss expenses	  	 	310	 	 	 	70	 	 	 	83	 	 	 	97	 	 	 	116	 	 	 	463	 	 	 	291	 	 	 	388	 	
Policy acquisition costs	  	 	2	 	 	 	1	 	 	 	2	 	 	 	1	 	 	 	2	 	 	 	5	 	 	 	22	 	 	 	23	 	
Administrative expenses	  	 	3	 	 	 	7	 	 	 	4	 	 	 	1	 	 	 	4	 	 	 	14	 	 	 	38	 	 	 	39	 	
 	  				 				 				 				 				 				 				 				
Underwriting income (loss)	  	 	(58	)	 	 	14	 	 	 	1	 	 	 	(3	)	 	 	(11	)	 	 	(43	)	 	 	73	 	 	 	70	 	
									
Net investment income	  	 	35	 	 	 	30	 	 	 	32	 	 	 	29	 	 	 	29	 	 	 	97	 	 	 	118	 	 	 	147	 	
Net realized gains (losses)	  	 	7	 	 	 	3	 	 	 	6	 	 	 	12	 	 	 	(2	)	 	 	16	 	 	 	(29	)	 	 	(17	)	
Interest expense	  	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	2	 	 	 	—  	 	 	 	5	 	 	 	5	 	
Other (income) expense	  	 	(30	)	 	 	(13	)	 	 	(12	)	 	 	(15	)	 	 	(14	)	 	 	(55	)	 	 	(10	)	 	 	(25	)	
Income tax expense	  	 	10	 	 	 	7	 	 	 	6	 	 	 	3	 	 	 	1	 	 	 	23	 	 	 	32	 	 	 	35	 	
 	  				 				 				 				 				 				 				 				
Net income	  	 	4	 	 	 	53	 	 	 	45	 	 	 	50	 	 	 	27	 	 	 	102	 	 	 	135	 	 	 	185	 	
									
Net realized gains (losses)	  	 	7	 	 	 	3	 	 	 	6	 	 	 	12	 	 	 	(2	)	 	 	16	 	 	 	(29	)	 	 	(17	)	
Tax expense (benefit) on net realized gains (losses)	  	 	—  	 	 	 	(1	)	 	 	2	 	 	 	2	 	 	 	(2	)	 	 	1	 	 	 	6	 	 	 	8	 	
 	  				 				 				 				 				 				 				 				
Income (loss) excluding net realized gains (losses) (1)	  	$	(3	)	 	$	49	 	 	$	41	 	 	$	40	 	 	$	27	 	 	$	87	 	 	$	170	 	 	$	210	 	
 	  				 				 				 				 				 				 				 				
Combined ratio	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Loss and loss expense ratio	  	 	120.7	%	 	 	76.0	%	 	 	92.2	%	 	 	101.3	%	 	 	104.7	%	 	 	105.4	%	 	 	68.6	%	 	 	74.6	%	
Policy acquisition cost ratio	  	 	0.9	%	 	 	1.4	%	 	 	2.2	%	 	 	-0.1	%	 	 	2.3	%	 	 	1.3	%	 	 	5.3	%	 	 	4.3	%	
Administrative expense ratio	  	 	1.4	%	 	 	6.7	%	 	 	4.6	%	 	 	1.8	%	 	 	2.7	%	 	 	3.2	%	 	 	8.8	%	 	 	7.5	%	
 	  				 				 				 				 				 				 				 				
Combined ratio	  	 	123.0	%	 	 	84.1	%	 	 	99.0	%	 	 	103.0	%	 	 	109.7	%	 	 	109.9	%	 	 	82.7	%	 	 	86.4	%	
 	  				 				 				 				 				 				 				 				
Large losses and other items	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Catastrophe and other large losses (before tax)	  	$	240	 	 	$	—  	 	 	$	—  	 	 	$	—  	 	 	$	11	 	 	$	240	 	 	$	—  	 	 	$	11	 	
Prior period development	  	$	2	 	 	$	(8	)	 	$	1	 	 	$	(8	)	 	$	(14	)	 	$	(5	)	 	$	(21	)	 	$	(29	)	
									
% Change versus prior year period	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net premiums written	  	 	212	%	 	 	15	%	 	 	-23	%	 	 	-90	%	 	 	-35	%	 	 	34	%	 	 	-62	%	 	 	-69	%	
Net premiums earned	  	 	132	%	 	 	-31	%	 	 	-50	%	 	 	-80	%	 	 	-46	%	 	 	4	%	 	 	-31	%	 	 	-52	%	
									
Other ratios	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net premiums written/gross premiums written	  	 	100	%	 	 	100	%	 	 	99	%	 	 	93	%	 	 	100	%	 	 	100	%	 	 	99	%	 	 	99	%	
 
(1)	See page 26 Non-GAAP Financial Measures.	
 
(2)	Total premiums typically included in gross premiums written, net premiums written, and net premiums earned in the quarter it is written; usually accrued at 100% loss ratio.	

Financial Services	  	Page 16	

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

 	  	Total
	 	 	Ongoing
	 	 	Run-off (1)
	 	
 	  	Unpaid Losses
	 	 	Unpaid Losses
	 	 	Unpaid Losses
	 	
 	  	Gross
	 	 	Ceded
	 	 	Net
	 	 	Gross
	 	 	Ceded
	 	 	Net
	 	 	Gross
	 	 	Ceded
	 	 	Net
	 	
Balance at December 31, 2003	  	$	27,083	 	 	$	12,409	 	 	$	14,674	 	 	$	19,763	 	 	$	7,259	 	 	$	12,504	 	 	$	7,320	 	 	$	5,150	 	 	$	2,170	 	
										
Losses and loss expenses incurred	  	 	2,285	 	 	 	756	 	 	 	1,529	 	 	 	2,243	 	 	 	724	 	 	 	1,519	 	 	 	42	 	 	 	32	 	 	 	10	 	
Losses and loss expenses paid	  	 	(1,860	)	 	 	(781	)	 	 	(1,079	)	 	 	(1,639	)	 	 	(545	)	 	 	(1,094	)	 	 	(221	)	 	 	(236	)	 	 	15	 	
Other (incl. foreign exch. revaluation)	  	 	117	 	 	 	110	 	 	 	7	 	 	 	117	 	 	 	110	 	 	 	7	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	
 	  				 				 				 				 				 				 				 				 				
Balance at March 31, 2004	  	 	27,625	 	 	 	12,494	 	 	 	15,131	 	 	 	20,484	 	 	 	7,548	 	 	 	12,936	 	 	 	7,141	 	 	 	4,946	 	 	 	2,195	 	
										
Losses and loss expenses incurred	  	 	2,453	 	 	 	727	 	 	 	1,726	 	 	 	2,483	 	 	 	761	 	 	 	1,722	 	 	 	(30	)	 	 	(34	)	 	 	4	 	
Losses and loss expenses paid	  	 	(1,693	)	 	 	(593	)	 	 	(1,100	)	 	 	(1,402	)	 	 	(399	)	 	 	(1,003	)	 	 	(291	)	 	 	(194	)	 	 	(97	)	
Other (incl. foreign exch. revaluation)	  	 	(233	)	 	 	166	 	 	 	(399	)	 	 	(233	)	 	 	166	 	 	 	(399	)	 	 	—  	 	 	 	—  	 	 	 	—  	 	
 	  				 				 				 				 				 				 				 				 				
Balance at June 30, 2004	  	 	28,152	 	 	 	12,794	 	 	 	15,358	 	 	 	21,332	 	 	 	8,076	 	 	 	13,256	 	 	 	6,820	 	 	 	4,718	 	 	 	2,102	 	
										
Losses and loss expenses incurred	  	 	3,309	 	 	 	1,076	 	 	 	2,233	 	 	 	3,280	 	 	 	1,058	 	 	 	2,222	 	 	 	29	 	 	 	18	 	 	 	11	 	
Losses and loss expenses paid	  	 	(1,957	)	 	 	(697	)	 	 	(1,260	)	 	 	(1,749	)	 	 	(372	)	 	 	(1,377	)	 	 	(208	)	 	 	(325	)	 	 	117	 	
Other (incl. foreign exch. revaluation)	  	 	27	 	 	 	48	 	 	 	(21	)	 	 	(396	)	 	 	(375	)	 	 	(21	)	 	 	423	 	 	 	423	 	 	 	—  	 	
 	  				 				 				 				 				 				 				 				 				
Balance at September 30, 2004	  	 	29,531	 	 	 	13,221	 	 	 	16,310	 	 	 	22,467	 	 	 	8,387	 	 	 	14,080	 	 	 	7,064	 	 	 	4,834	 	 	 	2,230	 	
Losses and loss expenses incurred	  	 	3,712	 	 	 	1,507	 	 	 	2,205	 	 	 	2,672	 	 	 	1,083	 	 	 	1,589	 	 	 	1,040	 	 	 	424	 	 	 	616	 	
Losses and loss expenses paid	  	 	(2,328	)	 	 	(1,007	)	 	 	(1,321	)	 	 	(2,219	)	 	 	(959	)	 	 	(1,260	)	 	 	(109	)	 	 	(48	)	 	 	(61	)	
Other (incl. foreign exch. revaluation)	  	 	568	 	 	 	245	 	 	 	323	 	 	 	281	 	 	 	(84	)	 	 	365	 	 	 	287	 	 	 	329	 	 	 	(42	)	
 	  				 				 				 				 				 				 				 				 				
Balance at December 31, 2004	  	 	31,483	 	 	 	13,966	 	 	 	17,517	 	 	 	23,201	 	 	 	8,427	 	 	 	14,774	 	 	 	8,282	 	 	 	5,539	 	 	 	2,743	 	
										
Losses and loss expenses incurred	  	 	2,536	 	 	 	747	 	 	 	1,789	 	 	 	2,492	 	 	 	725	 	 	 	1,767	 	 	 	44	 	 	 	22	 	 	 	22	 	
Losses and loss expenses paid	  	 	(1,998	)	 	 	(763	)	 	 	(1,235	)	 	 	(1,817	)	 	 	(661	)	 	 	(1,156	)	 	 	(181	)	 	 	(102	)	 	 	(79	)	
Other (incl. foreign exch. revaluation) (2)	  	 	(595	)	 	 	(595	)	 	 	—  	 	 	 	(669	)	 	 	(670	)	 	 	1	 	 	 	74	 	 	 	75	 	 	 	(1	)	
 	  				 				 				 				 				 				 				 				 				
Balance at March 31, 2005	  	 	31,426	 	 	 	13,355	 	 	 	18,071	 	 	 	23,207	 	 	 	7,821	 	 	 	15,386	 	 	 	8,219	 	 	 	5,534	 	 	 	2,685	 	
										
Losses and loss expenses incurred	  	 	2,812	 	 	 	968	 	 	 	1,844	 	 	 	2,792	 	 	 	957	 	 	 	1,835	 	 	 	20	 	 	 	11	 	 	 	9	 	
Losses and loss expenses paid	  	 	(1,919	)	 	 	(752	)	 	 	(1,167	)	 	 	(1,711	)	 	 	(567	)	 	 	(1,144	)	 	 	(208	)	 	 	(185	)	 	 	(23	)	
Other (incl. foreign exch. revaluation)	  	 	(218	)	 	 	(71	)	 	 	(147	)	 	 	(191	)	 	 	(71	)	 	 	(120	)	 	 	(27	)	 	 	—  	 	 	 	(27	)	
 	  				 				 				 				 				 				 				 				 				
Balance at June 30, 2005	  	 	32,101	 	 	 	13,500	 	 	 	18,601	 	 	 	24,097	 	 	 	8,140	 	 	 	15,957	 	 	 	8,004	 	 	 	5,360	 	 	 	2,644	 	
										
Losses and loss expenses incurred	  	 	5,018	 	 	 	2,212	 	 	 	2,806	 	 	 	4,944	 	 	 	2,194	 	 	 	2,750	 	 	 	74	 	 	 	18	 	 	 	56	 	
Losses and loss expenses paid	  	 	(2,342	)	 	 	(892	)	 	 	(1,450	)	 	 	(2,187	)	 	 	(799	)	 	 	(1,388	)	 	 	(155	)	 	 	(93	)	 	 	(62	)	
Other (incl. foreign exch. revaluation)	  	 	(103	)	 	 	(55	)	 	 	(48	)	 	 	(103	)	 	 	(54	)	 	 	(49	)	 	 	—  	 	 	 	(1	)	 	 	1	 	
 	  				 				 				 				 				 				 				 				 				
Balance at September 30, 2005	  	$	34,674	 	 	$	14,765	 	 	$	19,909	 	 	$	26,751	 	 	$	9,481	 	 	$	17,270	 	 	$	7,923	 	 	$	5,284	 	 	$	2,639	 	

(1)	The run-off reserves primarily include the Brandywine group, the Commercial Insurance Service - Middle Market Worker’s Comp. reserves and the pre-1997 Westchester Specialty reserves.	
 
(2)	Novation of a contract for $597M.	

Loss Reserve Rollforward	  	Page 17	

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

 	  	September 30
2005
	 	 	June 30
2005
	 	 	March 31
2005
	 	 	December 31
2004
	 	
Reinsurance recoverable on paid losses & loss expenses	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Active operations	  	$	744	 	 	$	768	 	 	$	795	 	 	$	788	 	
Brandywine	  	 	403	 	 	 	415	 	 	 	385	 	 	 	398	 	
Westchester	  	 	27	 	 	 	32	 	 	 	24	 	 	 	24	 	
 	  				 				 				 				
Total	  	$	1,174	 	 	$	1,215	 	 	$	1,204	 	 	$	1,210	 	
 	  				 				 				 				
Reinsurance recoverable on unpaid losses & loss expenses	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Active operations	  	$	10,277	 	 	$	8,907	 	 	$	8,607	 	 	$	9,291	 	
Brandywine	  	 	4,436	 	 	 	4,654	 	 	 	4,796	 	 	 	4,720	 	
Westchester	  	 	554	 	 	 	571	 	 	 	578	 	 	 	589	 	
 	  				 				 				 				
Total	  	$	15,267	 	 	$	14,132	 	 	$	13,981	 	 	$	14,600	 	
 	  				 				 				 				
Gross reinsurance recoverable	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Active operations	  	$	11,021	 	 	$	9,675	 	 	$	9,402	 	 	$	10,079	 	
Brandywine	  	 	4,839	 	 	 	5,069	 	 	 	5,181	 	 	 	5,118	 	
Westchester	  	 	581	 	 	 	603	 	 	 	602	 	 	 	613	 	
 	  				 				 				 				
Total	  	$	16,441	 	 	$	15,347	 	 	$	15,185	 	 	$	15,810	 	
 	  				 				 				 				
Bad debt reserve	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Active operations	  	$	(558	)	 	$	(579	)	 	$	(577	)	 	$	(547	)	
Brandywine	  	 	(180	)	 	 	(302	)	 	 	(302	)	 	 	(341	)	
Westchester	  	 	(41	)	 	 	(38	)	 	 	(38	)	 	 	(40	)	
 	  				 				 				 				
Total	  	$	(779	)	 	$	(919	)	 	$	(917	)	 	$	(928	)	
 	  				 				 				 				
Net reinsurance recoverable	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Active operations	  	$	10,463	 	 	$	9,096	 	 	$	8,825	 	 	$	9,532	 	
Brandywine	  	 	4,659	 	 	 	4,767	 	 	 	4,879	 	 	 	4,777	 	
Westchester	  	 	540	 	 	 	565	 	 	 	564	 	 	 	573	 	
 	  				 				 				 				
Total	  	$	15,662	 	 	$	14,428	 	 	$	14,268	 	 	$	14,882	 	

			
Reinsurance Recoverable	  	Page 18	

 
			
	  	ACE Limited	
	  	Reinsurance Recoverable Analysis	
	  	(in millions of U.S. dollars)	
	  	(Unaudited)	
 
Reinsurance Recoverable for Active Operations

 	  	June 30, 2005
	 	
 	  	Recoverable
	  	Bad Debt
	  	% of Gross
	 	
Categories	  	 	 	  	 	 	  	 	 	
Top 10 reinsurers	  	$	4,451	  	$	71	  	1.6	%	
Other reinsurers balances >$20 million	  	 	2,172	  	 	82	  	3.8	%	
Other reinsurers balances <$20 million	  	 	558	  	 	66	  	11.8	%	
Mandatory pools and government agencies	  	 	659	  	 	3	  	0.5	%	
Structured settlements	  	 	207	  	 	1	  	0.5	%	
Captives	  	 	1,151	  	 	1	  	0.1	%	
Other (1)	  	 	477	  	 	355	  	74.4	%	
 	  			  			  			
Total	  	$	9,675	  	$	579	  	6.0	%	

At June 30, 2005, $6.6 billion of the active operations’ recoverables were from rated reinsurers, of which 94.4% were rated the equivalent of A- or better by internationally recognized rating agencies. The Company held collateral of $2.8 billion, of which $1.5 billion was matched and usable against existing recoverables.

Top 10 Reinsurers (net of collateral) (2)
	 	Other Reinsurers Balances Greater Than $20 million (net of collateral) (2)
	
American International Group	 	AIOI Insurance	 	IRB - Brasil Resseguros S.A. Group	
AXA	 	Allianz	 	Liberty Mutual Insurance Companies	
Berkshire Hathaway Insurance Group	 	Allied World Assurance	 	Mitsui Sumitomo Insurance Company Ltd	
Electric Insurance Company	 	Arch Capital	 	Overseas Partners Reinsurance Ltd	
GE Insurance Solutions	 	Aspen Insurance Holdings Ltd	 	Partner Re	
HDI Haftpflichtverband Der Deutschen Industrie Vag (Hannover)	 	AVIVA	 	Platinum Underwriters	
Lloyd’s of London	 	Chubb Insurance Group	 	Renaissance Re Holdings Ltd	
Munich Re Group	 	CIGNA	 	Royal & Sun Alliance Insurance Group	
Swiss Re Group	 	CNA Insurance Companies	 	SCOR Group	
XL Capital Group	 	Converium Group	 	Sompo Japan	
 	 	Endurance Specialty Holdings Ltd	 	St Paul Travelers Companies	
 	 	Everest Re Group	 	Sun Life Financial Inc	
 	 	Fairfax Financial	 	Toa Reinsurance Company	
 	 	Federal Crop Insurance Corp	 	White Mountains Insurance Group	
 	 	Gerling Global Group	 	WR Berkley Corp	
 	 	Independence Blue Cross Group	 	Zurich Financial Services Group	
 	 	ING - Internationale Nederlanden Group	 	 	
 
(1)	Other includes amounts recoverable that are in dispute, or are from companies who are in supervision, rehabilitation or liquidation. Our estimate of bad debt reserve associated with Other considers the credit quality of the reinsurer, and whether we have received collateral or other credit protections such as parental guarantees.	
 
(2)	Excludes recoverable amounts from companies who are in supervision, rehabilitation or liquidation, or are captive reinsurers, mandatory pools or voluntary pools.	

Reinsurance Rec-Active	  	Page 19	

 
			
	  	ACE Limited	
	  	Reinsurance Recoverable Analysis	
	  	(in millions of U.S. dollars)	
	  	(Unaudited)	
 
Consolidated Reinsurance Recoverable

 	  	June 30, 2005
	 	
 	  	Recoverable
	  	Bad Debt
	  	% of Gross
	 	
Categories	  	 	 	  	 	 	  	 	 	
Top 10 reinsurers	  	$	7,622	  	$	93	  	1.2	%	
Other reinsurers balances >$20 million	  	 	3,412	  	 	174	  	5.1	%	
Other reinsurers balances <$20 million	  	 	951	  	 	135	  	14.2	%	
Mandatory pools and government agencies	  	 	668	  	 	3	  	0.4	%	
Structured settlements	  	 	489	  	 	2	  	0.4	%	
Captives	  	 	1,244	  	 	2	  	0.2	%	
Other (1)	  	 	961	  	 	510	  	53.1	%	
 	  			  			  			
Total	  	$	15,347	  	$	919	  	6.0	%	

At June 30, 2005, $11 billion of consolidated recoverables were from rated reinsurers, of which 94.1% were rated the equivalent of A- or better by internationally recognized rating agencies.

Top 10 Reinsurers (net of collateral) (2)
	 	Other Reinsurers Balances Greater Than $20 million (net of collateral) (2)
	
American International Group	 	AIOI Insurance	 	Independence Blue Cross Group	
Berkshire Hathaway Insurance Group	 	Allianz	 	ING - Internationale Nederlanden Group	
Equitas	 	Allied World Assurance	 	IRB - Brasil Resseguros S.A. Group	
Everest Re Group	 	Allstate Group	 	Liberty Mutual Insurance Companies	
GE Insurance Solutions	 	Arch Capital	 	Millea Holdings	
HDI Haftpflichtverband Der Deutschen Industrie Vag (Hannover)	 	Aspen Insurance Holdings Ltd	 	Mitsui Sumitomo Insurance Company Ltd	
Lloyd’s of London	 	AVIVA	 	Overseas Partners Reinsurance Ltd	
Munich Re Group	 	AXA	 	Partner Re	
Swiss Re Group	 	Chubb Insurance Group	 	Platinum Underwriters	
XL Capital Group	 	CIGNA	 	Renaissance Re Holdings Ltd	
 	 	CNA Insurance Companies	 	Royal & Sun Alliance Insurance Group	
 	 	Converium Group	 	SCOR Group	
 	 	Dukes Place Holdings	 	Sompo Japan	
 	 	Electric Insurance Company	 	St Paul Travelers Companies	
 	 	Endurance Specialty Holdings Ltd	 	Sun Life Financial Inc	
 	 	Fairfax Financial	 	Toa Reinsurance Company	
 	 	Federal Crop Insurance Corp	 	Trenwick Group	
 	 	FM Global Group	 	White Mountains Insurance Group	
 	 	Gerling Global Group	 	WR Berkley Corp	
 	 	Hartford Insurance Group	 	Zurich Financial Services Group	
 
(1)	Other includes amounts recoverable that are in dispute, or are from companies who are in supervision, rehabilitation or liquidation. Our estimate of bad debt reserve associated with Other considers the credit quality of the reinsurer, and whether we have received collateral or other credit protections such as parental guarantees.	
 
(2)	Excludes recoverable amounts from companies who are in supervision, rehabilitation or liquidation, or are captive reinsurers, mandatory pools or voluntary pools.	

Reinsurance Rec-Consolidated	  	Page 20	

 
			
	  	ACE Limited	
	  	Reinsurance Recoverable Analysis	
	  	(in millions of U.S. dollars)	
	  	(Unaudited)	
 
Detail on Reinsurance Recoverable on Paid Losses and Loss Expenses

 	  	General
Collections  (1)
	 	 	Other  (2)
	 	 	Total
	 	
Gross balance at December 31, 2004	  	$	716	 	 	$	494	 	 	$	1,210	 	
Bad debt reserve at 12/31/04	  	 	37	 	 	 	272	 	 	 	309	 	
% of gross	  	 	5.2	%	 	 	55.1	%	 	 	25.5	%	
 	  				 				 				
Net balance at December 31, 2004	  	$	679	 	 	$	222	 	 	$	901	 	
 	  				 				 				
Gross balance at March 31, 2005	  	$	712	 	 	$	492	 	 	$	1,204	 	
Bad debt reserve at 3/31/05	  	 	37	 	 	 	268	 	 	 	305	 	
% of gross	  	 	5.2	%	 	 	54.5	%	 	 	25.3	%	
 	  				 				 				
Net balance at March 31, 2005	  	$	675	 	 	$	224	 	 	$	899	 	
 	  				 				 				
Gross balance at June 30, 2005	  	$	719	 	 	$	496	 	 	$	1,215	 	
Bad debt reserve at 6/30/05	  	 	29	 	 	 	271	 	 	 	300	 	
% of gross	  	 	4.0	%	 	 	54.6	%	 	 	24.7	%	
 	  				 				 				
Net balance at June 30, 2005	  	$	690	 	 	$	225	 	 	$	915	 	
 	  				 				 				
Gross balance at September 30, 2005	  	$	695	 	 	$	479	 	 	$	1,174	 	
Bad debt reserve at 9/30/05	  	 	31	 	 	 	259	 	 	 	290	 	
% of gross	  	 	4.5	%	 	 	54.1	%	 	 	24.7	%	
 	  				 				 				
Net balance at September 30, 2005	  	$	664	 	 	$	220	 	 	$	884	 	

(1)	General collections balances represent amounts in process of collection in the normal course of business, for which we have no indication of dispute or credit issues.	
 
(2)	Other includes amounts recoverable that are in dispute, or are from companies who are in supervision, rehabilitation or liquidation for Brandywine Group and active operations. Our estimation of the reserve for other, considers the merits of the underlying matter, the credit quality of the reinsurer, and whether we have received collateral or other credit protections such as parental guarantees.	

Reinsurance Recoverable 4	  	Page 21	

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

 	  	September 30
2005
	 	 	June 30
2005
	 	 	March 31
2005
	 	 	December 31
2004
	 	
Market Value	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Fixed maturities available for sale	  	$	22,551	 	 	$	21,136	 	 	$	20,336	 	 	$	22,891	 	
Fixed maturities held to maturity	  	 	3,126	 	 	 	3,207	 	 	 	3,207	 	 	 	—  	 	
Short-term investments	  	 	2,212	 	 	 	2,476	 	 	 	2,156	 	 	 	2,163	 	
 	  				 				 				 				
Total	  	$	27,889	 	 	$	26,819	 	 	$	25,699	 	 	$	25,054	 	
 	  				 				 				 				
Asset Allocation by Market Value	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Treasury	  	$	2,274	 	 	$	1,704	 	 	$	1,728	 	 	$	1,551	 	
Agency	  	 	1,492	 	 	 	1,553	 	 	 	1,517	 	 	 	1,547	 	
Corporate	  	 	7,718	 	 	 	7,555	 	 	 	7,615	 	 	 	7,614	 	
Mortgage-backed securities	  	 	6,780	 	 	 	6,169	 	 	 	5,504	 	 	 	5,034	 	
Asset-backed securities	  	 	1,420	 	 	 	1,444	 	 	 	1,215	 	 	 	1,225	 	
Municipal	  	 	565	 	 	 	548	 	 	 	559	 	 	 	566	 	
Non-US	  	 	5,428	 	 	 	5,370	 	 	 	5,405	 	 	 	5,376	 	
Cash & cash equivalent	  	 	2,212	 	 	 	2,476	 	 	 	2,156	 	 	 	2,141	 	
 	  				 				 				 				
Total	  	 	27,889	 	 	 	26,819	 	 	 	25,699	 	 	$	25,054	 	
 	  				 				 				 				
Credit Quality by Market Value	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
AAA	  	$	16,994	 	 	$	16,205	 	 	$	14,743	 	 	$	13,890	 	
AA	  	 	2,369	 	 	 	2,198	 	 	 	2,475	 	 	 	2,634	 	
A	  	 	4,325	 	 	 	4,295	 	 	 	4,451	 	 	 	4,397	 	
BBB	  	 	2,054	 	 	 	1,974	 	 	 	2,182	 	 	 	2,275	 	
BB	  	 	1,013	 	 	 	1,041	 	 	 	817	 	 	 	774	 	
B	  	 	1,093	 	 	 	1,060	 	 	 	982	 	 	 	1,041	 	
Other	  	 	41	 	 	 	46	 	 	 	49	 	 	 	43	 	
 	  				 				 				 				
Total	  	 	27,889	 	 	 	26,819	 	 	 	25,699	 	 	$	25,054	 	
 	  				 				 				 				
Cost/Amortized Cost	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Fixed maturities available for sale	  	$	22,434	 	 	$	20,825	 	 	$	20,217	 	 	$	22,422	 	
Fixed maturities held to maturity	  	 	3,125	 	 	 	3,151	 	 	 	3,211	 	 	 	—  	 	
Short term investments	  	 	2,212	 	 	 	2,476	 	 	 	2,156	 	 	 	2,163	 	
 	  				 				 				 				
Subtotal	  	 	27,771	 	 	 	26,452	 	 	 	25,584	 	 	 	24,585	 	
Equity securities	  	 	1,210	 	 	 	1,213	 	 	 	1,170	 	 	 	1,061	 	
Other investments	  	 	575	 	 	 	562	 	 	 	564	 	 	 	551	 	
 	  				 				 				 				
Total	  	$	29,556	 	 	$	28,227	 	 	$	27,318	 	 	$	26,197	 	
 	  				 				 				 				
Avg. duration of fixed maturities, adjusted for int. rate swaps	  	 	3.2 years	 	 	 	3.0 years	 	 	 	3.1 years	 	 	 	3.4 years	 	
Avg. market yield of fixed maturities	  	 	4.6	%	 	 	4.3	%	 	 	4.5	%	 	 	4.1	%	
Avg. credit quality	  	 	AA	 	 	 	AA	 	 	 	AA	 	 	 	AA	 	

Investments	  	Page 22	

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

 	  	Three months ended
September 30, 2005
	 	 	Nine months ended
September 30, 2005
	 	
 	  	Net Realized
Gains
(Losses) (1)
	 	 	Net Unrealized
Gains
(Losses)
	 	 	Net
Impact
	 	 	Net Realized
Gains
(Losses) (1)
	 	 	Net Unrealized
Gains
(Losses)
	 	 	Net
Impact
	 	
Investment Portfolio Gains (Losses)	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Fixed maturities	  	$	11	 	 	$	(197	)	 	$	(186	)	 	$	32	 	 	$	(340	)	 	$	(308	)	
Equity securities	  	 	23	 	 	 	60	 	 	 	83	 	 	 	58	 	 	 	22	 	 	 	80	 	
Equity and fixed income derivatives	  	 	41	 	 	 	—  	 	 	 	41	 	 	 	(2	)	 	 	—  	 	 	 	(2	)	
Foreign exchange gains (losses)	  	 	(1	)	 	 	—  	 	 	 	(1	)	 	 	(2	)	 	 	—  	 	 	 	(2	)	
Other	  	 	1	 	 	 	10	 	 	 	11	 	 	 	5	 	 	 	31	 	 	 	36	 	
 	  				 				 				 				 				 				
Total inv. portfolio gains (losses)	  	 	75	 	 	 	(127	)	 	 	(52	)	 	 	91	 	 	 	(287	)	 	 	(196	)	
Other FAS 133 adjustments	  	 	8	 	 	 	—  	 	 	 	8	 	 	 	10	 	 	 	—  	 	 	 	10	 	
 	  				 				 				 				 				 				
Total gains (losses)	  	 	83	 	 	 	(127	)	 	 	(44	)	 	 	101	 	 	 	(287	)	 	 	(186	)	
Income tax expense (benefit)	  	 	8	 	 	 	(29	)	 	 	(21	)	 	 	20	 	 	 	(54	)	 	 	(34	)	
 	  				 				 				 				 				 				
Net gains (losses)	  	$	75	 	 	$	(98	)	 	$	(23	)	 	$	81	 	 	$	(233	)	 	$	(152	)	

(1)	The quarter includes impairments of $4M for fixed maturities, $4M for equities and $2M for other investments. Year to date includes impairments of $28M for fixed maturities $6M for equities and $2M for other investments.	

 	  	Three months ended
September 30, 2004
	 	 	Nine months ended
September 30, 2004
	 	
 	  	Net Realized
Gains
(Losses) (2)
	 	 	Net Unrealized
Gains
(Losses)
	 	 	Net
Impact
	 	 	Net Realized
Gains
(Losses) (1)
	 	 	Net Unrealized
Gains
(Losses)
	 	 	Net
Impact
	 	
Investment Portfolio Gains (Losses)	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Fixed maturities	  	$	20	 	 	$	373	 	 	$	393	 	 	$	67	 	 	$	(162	)	 	$	(95	)	
Equity securities	  	 	7	 	 	 	5	 	 	 	12	 	 	 	75	 	 	 	(26	)	 	 	49	 	
Equity and fixed income derivatives	  	 	(6	)	 	 	—  	 	 	 	(6	)	 	 	23	 	 	 	—  	 	 	 	23	 	
Foreign exchange gains (losses)	  	 	1	 	 	 	—  	 	 	 	1	 	 	 	(2	)	 	 	—  	 	 	 	(2	)	
Other	  	 	(10	)	 	 	(4	)	 	 	(14	)	 	 	(21	)	 	 	26	 	 	 	5	 	
 	  				 				 				 				 				 				
Total inv. portfolio gains (losses)	  	 	12	 	 	 	374	 	 	 	386	 	 	 	142	 	 	 	(162	)	 	 	(20	)	
Other FAS 133 adjustments	  	 	(44	)	 	 	—  	 	 	 	(44	)	 	 	(75	)	 	 	—  	 	 	 	(75	)	
 	  				 				 				 				 				 				
Total gains (losses)	  	 	(32	)	 	 	374	 	 	 	342	 	 	 	67	 	 	 	(162	)	 	 	(95	)	
Income tax expense (benefit)	  	 	1	 	 	 	77	 	 	 	78	 	 	 	32	 	 	 	(46	)	 	 	(14	)	
 	  				 				 				 				 				 				
Net gains (losses)	  	$	(33	)	 	$	297	 	 	$	264	 	 	$	35	 	 	$	(116	)	 	$	(81	)	

(2)	The quarter includes impairments of $11M for fixed maturities, $3M for equities and $10M for other investments. Year to date includes impairments for $15M for fixed maturities, $5M for equities and $10M for other investments.	

Investment Gains (Losses)	  	Page 23	

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

 	  	September 30
2005
	 	 	June 30
2005
	 	 	March 31
2005
	 	 	December 31
2004
	 	 	December 31
2003
	 	
Total short-term debt	  	$	446	 	 	$	147	 	 	$	147	 	 	$	146	 	 	$	546	 	
Total long-term debt	  	 	1,564	 	 	 	1,849	 	 	 	1,849	 	 	 	1,849	 	 	 	1,349	 	
 	  				 				 				 				 				
Total debt	  	 	2,010	 	 	 	1,996	 	 	 	1,996	 	 	 	1,995	 	 	 	1,895	 	
						
Total trust preferreds	  	 	412	 	 	 	412	 	 	 	412	 	 	 	412	 	 	 	475	 	
						
Perpetual preferred	  	 	557	 	 	 	557	 	 	 	557	 	 	 	557	 	 	 	557	 	
Ordinary shareholders’ equity	  	 	9,672	 	 	 	9,942	 	 	 	9,413	 	 	 	9,288	 	 	 	8,266	 	
 	  				 				 				 				 				
Total shareholders’ equity	  	$	10,229	 	 	$	10,499	 	 	$	9,970	 	 	$	9,845	 	 	$	8,823	 	
 	  				 				 				 				 				
Total capitalization	  	$	12,651	 	 	$	12,907	 	 	$	12,378	 	 	$	12,252	 	 	$	11,193	 	
Tangible shareholders’ equity (1)	  	$	7,526	 	 	$	7,796	 	 	$	7,275	 	 	$	7,145	 	 	$	6,025	 	
						
Leverage ratios	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Debt/ total capitalization	  	 	15.9	%	 	 	15.5	%	 	 	16.1	%	 	 	16.3	%	 	 	16.9	%	
Debt plus trust preferreds/ total capitalization	  	 	19.1	%	 	 	18.7	%	 	 	19.5	%	 	 	19.6	%	 	 	21.2	%	
Debt/ tangible equity	  	 	26.7	%	 	 	25.6	%	 	 	27.4	%	 	 	27.9	%	 	 	31.5	%	
Debt plus trust preferreds/ tangible equity	  	 	32.2	%	 	 	30.9	%	 	 	33.1	%	 	 	33.7	%	 	 	39.3	%	
Debt plus total preferred stock/ total capitalization	  	 	23.5	%	 	 	23.0	%	 	 	24.0	%	 	 	24.2	%	 	 	26.2	%	
 
(1)	Tangible equity is equal to shareholders’ equity less goodwill.	

Capital Structure	  	Page 24	

 
			
	  	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 September 30
	 	 	Nine months ended September 30
	 	
 	  	2005
	 	 	2004
	 	 	2005
	 	 	2004
	 	
Numerator	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income excluding net realized gains (losses) (1)	  	$	(187	)	 	$	37	 	 	$	711	 	 	$	840	 	
Perpetual preferred dividend	  	 	(11	)	 	 	(11	)	 	 	(33	)	 	 	(33	)	
 	  				 				 				 				
Income to ordinary shares, excl. net realized gains (losses)	  	 	(198	)	 	 	26	 	 	 	678	 	 	 	807	 	
Net realized gains (losses), net of income tax	  	 	75	 	 	 	(33	)	 	 	81	 	 	 	35	 	
 	  				 				 				 				
Net income (loss) available to the holders of ordinary shares	  	$	(123	)	 	$	(7	)	 	$	759	 	 	$	842	 	
 	  				 				 				 				
Rollforward of ordinary shares	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Ordinary shares - beginning of period	  	 	288,073,439	 	 	 	283,604,445	 	 	 	284,478,525	 	 	 	279,897,193	 	
Issued under employee stock purchase plan	  	 	106,858	 	 	 	114,102	 	 	 	216,269	 	 	 	239,731	 	
Stock (cancelled) granted	  	 	(311,587	)	 	 	(68,327	)	 	 	1,029,125	 	 	 	843,359	 	
Issued for option exercises	  	 	803,740	 	 	 	462,646	 	 	 	2,948,531	 	 	 	3,132,583	 	
 	  				 				 				 				
Ordinary shares - end of period	  	 	288,672,450	 	 	 	284,112,866	 	 	 	288,672,450	 	 	 	284,112,866	 	
 	  				 				 				 				
Denominator	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Weighted average shares outstanding	  	 	284,777,017	 	 	 	280,993,760	 	 	 	284,016,708	 	 	 	279,988,076	 	
Effect of other dilutive securities	  	 	5,060,953	 	 	 	4,623,319	 	 	 	4,704,056	 	 	 	5,298,054	 	
 	  				 				 				 				
Adj. wtd. avg. shares outstanding and assumed conversions	  	 	289,837,970	 	 	 	285,617,079	 	 	 	288,720,764	 	 	 	285,286,130	 	
 	  				 				 				 				
Basic earnings per share	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income excluding net realized gains (losses) (1)	  	$	(0.70	)	 	$	0.09	 	 	$	2.38	 	 	$	2.88	 	
Net realized gains (losses), net of income tax	  	 	0.27	 	 	 	(0.12	)	 	 	0.29	 	 	 	0.12	 	
 	  				 				 				 				
Net income (loss)	  	$	(0.43	)	 	$	(0.03	)	 	$	2.67	 	 	$	3.00	 	
 	  				 				 				 				
Diluted earnings per share (2) 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income excluding net realized gains (losses) (1)	  	$	(0.70	)	 	$	0.09	 	 	$	2.34	 	 	$	2.82	 	
Net realized gains (losses), net of income tax	  	 	0.27	 	 	 	(0.12	)	 	 	0.29	 	 	 	0.13	 	
 	  				 				 				 				
Net income (loss)	  	$	(0.43	)	 	$	(0.03	)	 	$	2.63	 	 	$	2.95	 	

(1)	See page 26 Non-GAAP Financial Measures.	
 
(2)	The denominator for diluted loss per share for the three months ended September 30, 2005 and 2004 does not include the dilutive effect of other dilutive securities. The incremental shares from assumed conversions are not included in computing diluted loss per share amounts as these shares are considered anti-dilutive.	

Earnings per share	  	Page 25	

 
			
	  	ACE Limited	
	  	Non-GAAP Financial Measures	
	  	(in millions of U.S. dollars)	
	  	(Unaudited)	
 
Regulation G - Non-GAAP Financial Measures
 
In presenting our results, we have 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; however, they should not be viewed as a substitute for measures determined in accordance with GAAP. A reconciliation of book value per share to diluted book value per ordinary share is provided on page 27.
 
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, life and annuity 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).
 
The following non-GAAP measure is a common performance measurement and is defined as income (loss) excluding net realized gains (losses) and the tax expense on net realized gains (losses). We believe this presentation enhances the understanding of our results of operations by highlighting the underlying profitability of our insurance business. We exclude net realized gains (losses) because the amount of these gains (losses) is heavily influenced by, and fluctuates in part, according to the availability of market opportunities. We believe these amounts are largely independent of our business and including them would distort the analysis of trends. Income excluding net realized gains (losses) should not be viewed as a substitute for net income determined in accordance with generally accepted accounting principles (GAAP).

 	  	3Q-05
	 	 	2Q-05
	  	1Q-05
	 	 	4Q-04
	  	3Q-04
	 	 	YTD
2005
	  	YTD
2004
	  	Full Year
2004
	
Net income (loss), as reported	  	$	(112	)	 	$	467	  	$	437	 	 	$	278	  	$	4	 	 	$	792	  	$	875	  	$	1,153	
Net realized gains (losses)	  	 	83	 	 	 	32	  	 	(14	)	 	 	130	  	 	(32	)	 	 	101	  	 	67	  	 	197	
Income tax expense on net realized gains (losses)	  	 	8	 	 	 	8	  	 	4	 	 	 	12	  	 	1	 	 	 	20	  	 	32	  	 	44	
 	  				 			  				 			  				 			  			  			
Income excluding net realized gains (losses)	  	$	(187	)	 	$	443	  	$	455	 	 	$	160	  	$	37	 	 	$	711	  	$	840	  	$	1,000	

We also present income excluding net realized gains (losses) and catastrophe losses, net of tax because those losses are deemed to be significant for the third quarter and nine months of 2005. Catastrophes are not predictable and cause significant variability in periodic earnings. On page 11 we have presented net premium written, net premium earned, loss ratios, expense ratios and combined ratios excluding catastrophes as we believe this separate presentation is meaningful and useful for users of our financial information.

Reconciliation Non-GAAP	  	Page 26	

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

 	  	September 30
2005
	 	 	June 30
2005
	 	 	March 31
2005
	 	 	December 31
2004
	 	
Shareholders’ equity	  	$	10,229	 	 	$	10,499	 	 	$	9,970	 	 	$	9,845	 	
Net proceeds from assumed conversions of options	  	 	520	 	 	 	468	 	 	 	271	 	 	 	312	 	
Proceeds from issuance of preferred shares	  	 	(557	)	 	 	(557	)	 	 	(557	)	 	 	(557	)	
 	  				 				 				 				
Numerator for diluted book value per share calculation	  	 	10,192	 	 	 	10,410	 	 	 	9,684	 	 	 	9,600	 	
Less: goodwill	  	 	2,703	 	 	 	2,703	 	 	 	2,695	 	 	 	2,700	 	
 	  				 				 				 				
Numerator for diluted tangible book value per share	  	$	7,489	 	 	$	7,707	 	 	$	6,989	 	 	$	6,900	 	
 	  				 				 				 				
Ordinary shares outstanding - end of period	  	 	288,672,450	 	 	 	288,073,439	 	 	 	287,353,327	 	 	 	284,478,525	 	
Shares issued from assumed conversions of options	  	 	14,467,877	 	 	 	15,478,846	 	 	 	9,346,765	 	 	 	10,830,932	 	
 	  				 				 				 				
Denominator for diluted and diluted tangible book value	  	 	303,140,327	 	 	 	303,552,285	 	 	 	296,700,092	 	 	 	295,309,457	 	
 	  				 				 				 				
Book value per ordinary share	  	$	33.51	 	 	$	34.51	 	 	$	32.76	 	 	$	32.65	 	
Diluted book value per ordinary share	  	$	33.62	 	 	$	34.29	 	 	$	32.64	 	 	$	32.51	 	
Diluted tangible book value per ordinary share	  	$	24.70	 	 	$	25.39	 	 	$	23.56	 	 	$	23.37	 	

Reconcilition Book Value	  	Page 27	

 
			
	  	ACE Limited	
	  	Comprehensive Income	
	  	(in millions of U.S. dollars)	
	  	(Unaudited)	
 
Consolidated Statement of Comprehensive Income

 	  	3Q-05
	 	 	2Q-05
	 	 	1Q-05
	 	 	4Q-04
	 	 	3Q-04
	 	 	YTD
2005
	 	 	YTD
2004
	 	 	Full Year
2004
	 	
Net income (loss)	  	$	(112	)	 	$	467	 	 	$	437	 	 	$	278	 	 	$	4	 	 	$	792	 	 	$	875	 	 	$	1,153	 	
Net unrealized appreciation (depreciation) on investments	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Unrealized appreciation (depreciation) on investments	  	 	(78	)	 	 	247	 	 	 	(301	)	 	 	169	 	 	 	406	 	 	 	(132	)	 	 	14	 	 	 	183	 	
Reclassification adjustment for net realized gains (losses) included in net income	  	 	(47	)	 	 	(56	)	 	 	(48	)	 	 	(96	)	 	 	(32	)	 	 	(151	)	 	 	(176	)	 	 	(272	)	
Amortization of net unrealized appreciation related to held to maturity securities	  	 	(2	)	 	 	(2	)	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	(4	)	 	 	—  	 	 	 	—  	 	
Cumulative translation adjustment	  	 	(25	)	 	 	(68	)	 	 	(11	)	 	 	126	 	 	 	27	 	 	 	(104	)	 	 	5	 	 	 	131	 	
Minimum pension liability adjustment	  	 	1	 	 	 	4	 	 	 	2	 	 	 	(45	)	 	 	2	 	 	 	7	 	 	 	2	 	 	 	(43	)	
Income tax (expense) benefit related to other comprehensive income items	  	 	40	 	 	 	(21	)	 	 	72	 	 	 	(35	)	 	 	(82	)	 	 	91	 	 	 	56	 	 	 	21	 	
 	  				 				 				 				 				 				 				 				
Other comprehensive income (loss)	  	 	(111	)	 	 	104	 	 	 	(286	)	 	 	119	 	 	 	321	 	 	 	(293	)	 	 	(99	)	 	 	20	 	
 	  				 				 				 				 				 				 				 				
Comprehensive income (loss)	  	$	(223	)	 	$	571	 	 	$	151	 	 	$	397	 	 	$	325	 	 	$	499	 	 	$	776	 	 	$	1,173	 	

			
Comprehensive Income	  	Page 28	

			
	  	ACE Limited	
	  	Glossary	
 
Annualized return on ordinary shareholders’ equity (ROE): Income (loss) excluding net realized gains (losses) less perpetual preferred securities divided by average ordinary shareholders’ equity for the period. To annualize a quarterly rate multiply by four.
 
Combined ratio: The sum of the loss and loss expense ratio, acquisition cost ratio and the administrative expense ratio for the property and casualty and financial services operations. Calculated on a GAAP basis.
 
Diluted book value per ordinary share: Ordinary shareholders’ equity and net proceeds from assumed conversions of outstanding in-the-money options divided by the sum of shares outstanding and the number of options assumed issued.
 
Diluted tangible book value per ordinary share: Ordinary shareholders’ equity and net proceeds from assumed conversions of outstanding in-the-money options less goodwill divided by the sum of shares outstanding and the number of options assumed issued.
 
Effective tax rate: Income tax expense divided by the sum of income tax expense and income (loss) excluding net realized gains (losses).
 
FAS 115: Unrealized gains (losses) on investments and the deferred tax component included in shareholders’ equity.
 
Life underwriting income: Net premium earned and net investment income less future policy benefits, acquisition costs and administrative expenses.
 
NM: Not meaningful.
 
Ordinary shareholders’ equity: Shareholders’ equity less perpetual preferred shares.
 
P & C: Property and casualty.
 
Property and casualty combined ratios: Loss and loss expense ratios, policy acquisition cost ratios and administrative expense ratios excluding life reinsurance business and financial services segment. Calculated on a GAAP basis.
 
Return on ordinary shareholders’ equity (ROE): Income (loss) excluding net realized gains (losses) less perpetual preferred securities divided by average ordinary shareholders’ equity.
 
Tangible equity: Shareholders’ equity less goodwill.
 
Total capitalization: Short-term debt, long-term debt, trust preferreds, perpetual preferred shares and shareholders’ equity.
 
YTD: Year to date.

Glossary	  	Page 29