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): January 2, 1998
ACE LIMITED

(Exact name of registrant as specified in its charter)

      Cayman Islands                      1-11778             Not Applicable
_______________________________     ___________________    __________________
  State or other jurisdiction           (Commission          (I.R.S. Employer
    of incorporation)                   File Number)         dentification No.)

          The ACE Building
       30 Woodbourne Avenue
          Hamilton, Bermuda                                   HM 08
____________________________________________           ________________________
  (Address of principal executive offices)                 (Zip Code)	

Registrant's telephone number, including are code: (441) 295-5200
Not Applicable

(Former name or former address, if changed since last report)

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Item 2. Acquisition or Disposition of Assets.
On January 2, 1998, ACE Limited ("ACE") completed the acquisition of all of the outstanding capital stock of Westchester Specialty Group, Inc., an indirect wholly owned subsidiary of Xerox Corporation. The total purchase price paid by ACE in the acquisition was $338 million. Of the $338 million purchase price, $250 million was borrowed from a syndicate of banks with the remainder coming from available funds.
Item 7. Financial Statements and Exhibits.
(a) The required financial statements and pro forma financial information will be filed by amendment to this Form 8-K as soon as practicable, but in any event not later than 60 days after January 2, 1998.
(b) Exhibits.
2.1 Stock Purchase Agreement, dated September 18, 1997, by and among ACE Limited and Talegen Holdings, Inc. (Incorporated by reference to Exhibit 2.2 to ACE Limited's Annual Report on Form 10-K for the year ended September 30, 1997)
2.2 Tax Allocation and Indemnification Agreement, dated September 18, 1997, by and among Xerox Financial Services, Inc., Talegen Holdings, Inc., Westchester Specialty Group, Inc., and ACE Limited (Incorporated by reference to Exhibit 2.3 to ACE Limited's Annual Report on Form 10-K for the year ended September 30, 1997)
99.1 Press Release, dated January 5, 1998
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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.

Dated: January 23, 1998                          ACE LIMITED

                                               By: /s/ Christopher Z. Marshall
                                               ________________________________
                                                   Christopher Z. Marshall
                                                   Chief Financial Officer	

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EXHIBIT INDEX
Exhibit
Number Description
99.1 Press Release, dated January 5, 1998

NEWS RELEASE

FOR IMMEDIATE RELEASE              Investor Contact:   Helen M. Wilson
                                                       (441) 299-9283

                                   Media Contact:      Wendy Davis Johnson
                                                      (441) 299-9347	

ACE Limited Completes Acquisition of Westchester Specialty Group, Inc.
HAMILTON, Bermuda, January 5, 1998 - ACE Limited (NYSE: ACL) announced that it has completed the acquisition of Westchester Specialty Group, Inc., from Talegen Holdings, Inc., an indirect wholly owned subsidiary of Xerox Corporation. The total purchase price paid by ACE in the acquisition was $338 million. The $338 million purchase price includes adjustments, as provided for in the purchase agreement, of $5 million. Westchester Specialty Group, Inc., the holding company of the acquired business, will operate under the name ACE USA, while its subsidiaries will retain their names.
Brian Duperreault, chairman, president and chief executive officer of ACE Limited stated, "We can think of no better way to begin the new year than by formally welcoming Westchester to the ACE group of companies. As we said when we announced this proposed acquisition a few months ago, Westchester introduces us to a larger new client base.
"Given our focus on product and geographic diversification, we are pleased that business development in this important market can now begin in earnest."
The ACE group of companies provides insurance and reinsurance for a diverse group of international clients. ACE Limited, through its Bermuda-based subsidiaries, A.C.E. Insurance Company, Ltd., Corporate Officers & Directors Assurance Ltd. and Tempest Reinsurance Company Limited, provides excess liability insurance, directors and officers liability insurance, and property catastrophe reinsurance, as well as satellite, aviation, excess property, financial lines and political risk coverages. ACE also owns two Lloyd's managing agencies, ACE London Aviation Limited and ACE London Underwriting Limited, and provides corporate capital to Lloyd's syndicates under their management. At September 30, 1997, ACE Limited had approximately $2.6 billion in shareholders' equity and $5.0 billion in assets.
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