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 23, 2007
 
ACE LIMITED
(Exact name of registrant as specified in its charter)

Cayman Islands	 	1-11778	 	98-0091805	
(State or other jurisdiction
of Incorporation)	 	(Commission File Number)	 	(I.R.S. Employer
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 23, 2007, ACE Limited issued a press release reporting its third quarter 2007 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 23, 2007, reporting third quarter results	
		
99.2	  	Third Quarter 2007 Financial Supplement	

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

ACE LIMITED	
		
By:	 	/s/ Philip V. Bancroft     	
	 	Philip V. Bancroft	
	 	Chief Financial Officer 	
 
DATE: October 23, 2007

EXHIBIT INDEX

  Number  	  	  Description  	  	  Method of Filing  	
			
99.1	  	Press release, dated October 23 2007, reporting third quarter results	  	Furnished herewith	
			
99.2	  	Third Quarter 2007 Financial Supplement	  	Furnished herewith	
 
Exhibit 99.1

 
FOR IMMEDIATE RELEASE

Investor Contact:	  	Helen M. Wilson	
	  	(441) 299-9283	
	  	helen.wilson@ace.bm	
		
Media Contact:	  	Robert T. Grieves	
	  	(212) 827-4444	
	  	robert.grieves@ace-ina.com	
 
ACE REPORTS THIRD QUARTER 2007 NET INCOME OF $656 MILLION, UP 13%;
OPERATING INCOME INCREASES 6% TO $692 MILLION
 
HAMILTON, Bermuda, October 23, 2007 — ACE Limited (NYSE: ACE) today reported net income for the third quarter ended September 30, 2007, of $1.95 per ordinary share after payment of preferred dividends, compared with net income of $1.73 per share for the same quarter last year. Income excluding net realized gains (losses) was $2.06 per share, compared with $1.96 per share for the same quarter of last year. (1)  Book  value increased $851 million in the quarter.
 
Third Quarter Summary
(in millions, except per share amounts)
(Unaudited)

 	  	 	 	 	 	 	 	 	 	 	(Per Share - Diluted)	 	
 	  	2007	 	 	2006	 	 	Change	 	 	2007	 	 	2006	 	 	Change	 	
Net income	  	$	656	 	 	$	578	 	 	13	%	 	$	1.95	 	 	$	1.73	 	 	13	%	
Net realized gains (losses), net of tax	  	 	(36	)	 	 	(74	)	 	—  	 	 	 	(0.11	)	 	 	(0.23	)	 	—  	 	
Income excluding net realized gains (losses), net of tax (1) 	  	$	692	 	 	$	652	 	 	6	%	 	$	2.06	 	 	$	1.96	 	 	5	%	
Combined ratio	  	 	88.5	%	 	 	85.8	%	 			 				 				 			
 
Net income for the first nine months of 2007 increased 22 percent to $5.98 per share, compared with $4.92 per share for the first nine months of 2006. For the first nine months of 2007, income excluding net realized gains (losses) and cumulative effect increased 18 percent to $6.02 per share, compared with $5.13 per share for the same period of 2006. (1)  Book value increased $1.7 billion or 12% for the first nine months of 2007.
 
Page 1/6

Nine Months Summary
(in millions, except per share amounts)
(Unaudited)

 	  	 	 	 	 	 	 	 	 	 	(Per Share - Diluted)	 	
 	  	2007	 	 	2006	 	 	Change	 	 	2007	 	 	2006	 	 	Change	 	
Net income	  	$	2,006	 	 	$	1,640	 	 	22	%	 	$	5.98	 	 	$	4.92	 	 	22	%	
Net realized gains (losses), net of tax	  	 	(13	)	 	 	(72	)	 	—  	 	 	 	(0.04	)	 	 	(0.22	)	 	—  	 	
							
Cumulative effect, net of tax (2) 	  	 	—  	 	 	 	4	 	 	—  	 	 	 	—  	 	 	 	0.01	 	 	—  	 	
Income excluding net realized gains and cumulative effect, net of tax (1) 	  	$	2,019	 	 	$	1,708	 	 	18	%	 	$	6.02	 	 	$	5.13	 	 	17	%	
 
Evan Greenberg, Chairman and Chief Executive Officer of ACE Limited, commented: “We had another excellent quarter, marked by strong earnings and book value growth. It was a particularly strong quarter given the record-breaking results of the third quarter last year. Year-to-date, operating and net income were up more than 18 percent and 22 percent, respectively, and book value has increased 12 percent or nearly $2 billion. ACE’s global reach, product breadth and underwriting insight are competitive advantages that enable us to take advantage of profitable opportunities around the world while we shrink those areas where prices and terms do not meet our standards.”
 
Other third quarter operating highlights were as follows:
 
 	•	 	P&C net premiums written decreased .6% compared with the prior year quarter. Insurance net premiums written increased 2% and reinsurance net premiums written decreased 24%.	
 
 	•	 	P&C net premiums earned increased 1% over the prior year quarter. Insurance net premiums earned increased 3% and reinsurance net premiums earned decreased 14%.	
 
 	•	 	The combined ratio was 88.5% for the third quarter compared with 85.8% for the prior year quarter. The year-to-date combined ratio was 87.8% compared with 88.1% for the same period last year.	
 
 	•	 	P&C underwriting income was $350 million for the third quarter.	
 
 	•	 	Prior period development was favorable $70 million pre-tax for the quarter versus unfavorable $17 million pre-tax for the same quarter last year. Year-to-date, prior period development was favorable $128 million pre-tax versus favorable $29 million pre-tax for the same period last year.	
 
 	•	 	Pre-tax losses related to catastrophes were $21 million for the third quarter versus $6 million for the prior year quarter. Year-to-date, pre-tax losses related to catastrophes were $136 million versus $11 million for the same period last year.	
 
 	•	 	Operating cash flow amounted to $1.5 billion for the third quarter.	
 
 	•	 	Invested assets increased by $2 billion or 5% during the third quarter to $41.9 billion.	
 
 	•	 	Net unpaid losses and loss expenses increased $608 million to $22.6 billion from June 30, 2007.	
 
 	•	 	Net investment income in the third quarter increased 19% over the prior year quarter to $492 million.	
 
 	•	 	Shareholders’ equity at September 30, 2007, increased 12% from year-end 2006 to $16 billion.	
 
 	•	 	Return on average equity for the third quarter was 18.1%; excluding FAS 115, it was 18.6% (3) . Year-to-date, return on equity was 18.1%; excluding FAS 115, it was 18.8%.	
 
 	•	 	Book value per share as of September 30, 2007, increased 6% from June 30, 2007, while tangible book value per share increased 7% (4) .	
 
 	•	 	Book value per share as of September 30, 2007, increased 12% from December 31, 2006, while tangible book value per share increased 15% (4) .	
 
Page 2/6

Details of our third quarter 2007 financial results for our business segments are available in the financial supplement. Key segment items include:
 
 	•	 	Insurance-North American: Net premiums written decreased 1% compared with the prior year quarter. The combined ratio was 88.8%.	
 
 	•	 	Insurance-Overseas General: Net premiums written increased 6% over the prior year quarter. The combined ratio was 89.5%.	
 
 	•	 	Global Reinsurance: Net premiums written decreased 24% over the prior year quarter. The combined ratio was 73.6%.	
 
 	•	 	Life Insurance and Reinsurance: Net premiums written increased 38% over the prior year quarter. Income excluding net realized gains (losses) increased 31% over the prior year quarter to $47 million (1) .	
 
Please refer to the ACE Limited Financial Supplement dated September 30, 2007, which is posted on the Company’s website in the Investor Information section, and access Financial Reports for more detailed information on individual segment performance, together with additional disclosure on reinsurance recoverable, loss reserves, investment portfolio and capital structure. The URL reference is: http://media.corporate-ir.net/media_files/nys/ace/reports/fin_supp_september_30_2007.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 earnings conference call and webcast on Wednesday, October 24, 2007, beginning at 8:30 a.m. ET. The earnings conference call will be available via live and archived webcast at www.acelimited.com or by dialing 888-230-5503 (within the United States) or 913-312-0841 (international); passcode 8840600. 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 for approximately one month. To listen to the replay, dial: 888-203-1112 (in the United States) or 719-457-0820 (international); passcode 8840600.
 
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 of Companies 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) and cumulative effect, net of tax is a common performance measurement for insurance companies. We believe this presentation enhances the understanding of our results of operations by highlighting the underlying profitability of our insurance business. We exclude net realized gains (losses) and net realized gains (losses) included in Other (income) expense related to partially-owned insurance companies because the amount of these gains (losses) is heavily influenced by, and fluctuates in part according to, the availability of market opportunities. We exclude the cumulative effect of a change in accounting principle net of tax because this amount resulted in a one-time adjustment to income.
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 Measures beginning on page 21 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 	The cumulative effect is a benefit resulting from the inclusion of a forfeiture rate on restricted stock in our stock compensation expense calculations, as required under Financial Accounting Standard (FAS) 123R. 	

3 	Calculated using income excluding net realized gains (losses).	

4 	Book value per ordinary share is ordinary shareholders’ equity divided by the shares outstanding. Tangible book value per ordinary share is ordinary shareholders’ equity less goodwill divided by the shares outstanding.	
 
Page 3/6

Cautionary Statement Regarding Forward-Looking Statements : 
 
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 and actual settlement terms, 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	  	December 31	
 	  	2007	  	2006	
Assets	  			  			
Total investments	  	$	41,467	  	$	36,601	
Cash	  	 	506	  	 	565	
Insurance and reinsurance balances receivable	  	 	3,324	  	 	3,580	
Reinsurance recoverable	  	 	14,218	  	 	14,580	
Other assets	  	 	12,439	  	 	11,809	
	  	 	 	  	 	 	
Total assets	  	$	71,954	  	$	67,135	

Liabilities	  			  			
Unpaid losses and loss expenses	  	$	36,868	  	$	35,517	
Unearned premiums	  	 	6,542	  	 	6,437	
Other liabilities	  	 	12,509	  	 	10,903	
	  	 	 	  	 	 	
Total liabilities	  	$	55,919	  	$	52,857	

Shareholders’ equity	  			  			
Total shareholders’ equity	  	$	16,035	  	$	14,278	
	  	 	 	  	 	 	
Total liabilities and shareholders’ equity	  	$	71,954	  	$	67,135	
	  	 	 	  	 	 	
Book value per ordinary share (4) 	  	$	46.98	  	$	42.03	
 
Page 4/6

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	 	
 	  	2007	 	 	2006	 	 	2007	 	 	2006	 	
Gross premiums written	  	$	4,463	 	 	$	4,297	 	 	$	13,596	 	 	$	13,391	 	
Net premiums written	  	 	2,800	 	 	 	2,790	 	 	 	9,152	 	 	 	9,166	 	
Net premiums earned	  	 	3,150	 	 	 	3,088	 	 	 	9,240	 	 	 	8,799	 	
					
Losses and loss expenses	  	 	1,910	 	 	 	1,818	 	 	 	5,563	 	 	 	5,246	 	
Life and annuity benefits	  	 	39	 	 	 	29	 	 	 	108	 	 	 	91	 	
Policy acquisition costs	  	 	463	 	 	 	437	 	 	 	1,314	 	 	 	1,282	 	
Administrative expenses	  	 	358	 	 	 	353	 	 	 	1,070	 	 	 	1,091	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Underwriting income (1) 	  	 	380	 	 	 	451	 	 	 	1,185	 	 	 	1,089	 	
					
Net investment income	  	 	492	 	 	 	414	 	 	 	1,414	 	 	 	1,173	 	
Net realized gains (losses)	  	 	—  	 	 	 	(113	)	 	 	5	 	 	 	(113	)	
Interest expense	  	 	44	 	 	 	46	 	 	 	132	 	 	 	134	 	
Other (income) expense	  	 	32	 	 	 	(2	)	 	 	32	 	 	 	(19	)	
Income tax expense	  	 	140	 	 	 	130	 	 	 	434	 	 	 	398	 	
Cumulative effect, net of tax	  	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	4	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income	  	 	656	 	 	 	578	 	 	 	2,006	 	 	 	1,640	 	
Preference shares dividend	  	 	(11	)	 	 	(11	)	 	 	(33	)	 	 	(33	)	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income available to holders of ordinary shares	  	$	645	 	 	$	567	 	 	$	1,973	 	 	$	1,607	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Diluted earnings per share:	  				 				 				 				
Income excluding net realized gains (losses) and cumulative effect (1) 	  	$	2.06	 	 	$	1.96	 	 	$	6.02	 	 	$	5.13	 	
Net income	  	$	1.95	 	 	$	1.73	 	 	$	5.98	 	 	$	4.92	 	
					
Weighted average diluted shares outstanding	  	 	330.6	 	 	 	326.7	 	 	 	330.1	 	 	 	326.5	 	
					
Loss and loss expense ratio	  	 	62.5	%	 	 	60.2	%	 	 	62.0	%	 	 	61.0	%	
Policy acquisition cost ratio	  	 	14.7	%	 	 	14.2	%	 	 	14.3	%	 	 	14.7	%	
Administrative expense ratio	  	 	11.3	%	 	 	11.4	%	 	 	11.5	%	 	 	12.4	%	
Combined ratio	  	 	88.5	%	 	 	85.8	%	 	 	87.8	%	 	 	88.1	%	

Ratios exclude life insurance and reinsurance business
 
Page 5/6

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

 	  	Three Months Ended
September 30	 	 	Nine Months Ended
September 30	 	
 	  	2007	 	 	2006	 	 	2007	 	 	2006	 	
Gross Premiums Written	  				 				 				 				
					
Insurance - North American	  	$	2,708	 	 	$	2,550	 	 	$	7,566	 	 	$	7,427	 	
Insurance - Overseas General	  	 	1,427	 	 	 	1,387	 	 	 	4,707	 	 	 	4,456	 	
Global Reinsurance	  	 	228	 	 	 	291	 	 	 	1,041	 	 	 	1,312	 	
Life Insurance and Reinsurance	  	 	100	 	 	 	69	 	 	 	282	 	 	 	196	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total	  	$	4,463	 	 	$	4,297	 	 	$	13,596	 	 	$	13,391	 	

Net Premiums Written	  				 				 				 				
					
Insurance - North American	  	$	1,449	 	 	$	1,459	 	 	$	4,460	 	 	$	4,464	 	
Insurance - Overseas General	  	 	1,041	 	 	 	978	 	 	 	3,399	 	 	 	3,207	 	
Global Reinsurance	  	 	215	 	 	 	284	 	 	 	1,023	 	 	 	1,299	 	
Life Insurance and Reinsurance	  	 	95	 	 	 	69	 	 	 	270	 	 	 	196	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total	  	$	2,800	 	 	$	2,790	 	 	$	9,152	 	 	$	9,166	 	

Net Premiums Earned	  				 				 				 				
					
Insurance - North American	  	$	1,595	 	 	$	1,547	 	 	$	4,589	 	 	$	4,248	 	
Insurance - Overseas General	  	 	1,141	 	 	 	1,099	 	 	 	3,394	 	 	 	3,224	 	
Global Reinsurance	  	 	319	 	 	 	373	 	 	 	987	 	 	 	1,131	 	
Life Insurance and Reinsurance	  	 	95	 	 	 	69	 	 	 	270	 	 	 	196	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total	  	$	3,150	 	 	$	3,088	 	 	$	9,240	 	 	$	8,799	 	

Income Excluding Net Realized Gains (Losses) and Cumulative Effect (1) 	  				 				 				 				
					
Insurance - North American	  	$	312	 	 	$	297	 	 	$	940	 	 	$	828	 	
Insurance - Overseas General	  	 	210	 	 	 	226	 	 	 	608	 	 	 	567	 	
Global Reinsurance	  	 	142	 	 	 	135	 	 	 	413	 	 	 	388	 	
Life Insurance and Reinsurance	  	 	47	 	 	 	36	 	 	 	133	 	 	 	96	 	
Corporate	  	 	(19	)	 	 	(42	)	 	 	(75	)	 	 	(171	)	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total	  	$	692	 	 	$	652	 	 	$	2,019	 	 	$	1,708	 	

Page 6/6
  
Exhibit 99.2

			
	    	Financial Supplement
 
September 30, 2007	
		
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 and Quarterly Reports on Form 10-Q.	
		
email: investorrelations@ace.bm	    	Cautionary Statement Regarding Forward-Looking Statements:	
		
	    	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 and actual settlement terms, 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	
			
II.	  	Consolidated Results	  		
	  	- Consolidated Results - Consecutive Quarters	  	2	
	  	- Summary Consolidated Balance Sheets	  	3	
	  	- Consolidated Premiums by Line of Business	  	4	
	  	- Consolidating Statement of Operations	  	5-6	
			
III.	  	Segment Results	  		
	  	- Insurance - North American	  	7	
	  	- Insurance - Overseas General	  	8	
	  	- Global Reinsurance	  	9-10	
	  	- Life Insurance and Reinsurance	  	11	
			
IV.	  	Balance Sheet Details	  		
	  	- Loss Reserve Rollforward	  	12	
	  	- Reinsurance Recoverable Analysis	  	13-16	
	  	- Investment Portfolio	  	17	
	  	- Net Realized and Unrealized Gains (Losses)	  	18	
	  	- Capital Structure	  	19	
	  	- Computation of Basic and Diluted Earnings Per Share	  	20	
			
V.	  	Other Disclosures	  		
	  	- Non-GAAP Financial Measures	  	21	
	  	- Book Value per Ordinary Share	  	22	
	  	- Comprehensive Income	  	23	
	  	- Glossary	  	24	

															
	  	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	 	 	 	 	
 	  	2007	 	 	2006	 	 	% Change
3Q-07 vs.
3Q-06	 	 	2007	 	 	2006	 	 	% Change
YTD-07 vs.
YTD-06	 	
Gross premiums written	  	$	4,463	 	 	$	4,297	 	 	4	%	 	$	13,596	 	 	$	13,391	 	 	2	%	
							
Net premiums written	  	$	2,800	 	 	$	2,790	 	 	0	%	 	$	9,152	 	 	$	9,166	 	 	0	%	
							
Net premiums earned	  	$	3,150	 	 	$	3,088	 	 	2	%	 	$	9,240	 	 	$	8,799	 	 	5	%	
							
Net investment income	  	$	492	 	 	$	414	 	 	19	%	 	$	1,414	 	 	$	1,173	 	 	21	%	
							
Net income	  	$	656	 	 	$	578	 	 	13	%	 	$	2,006	 	 	$	1,640	 	 	22	%	
							
Income excluding net realized gains (losses) and cumulative effect (1) 	  	$	692	 	 	$	652	 	 	6	%	 	$	2,019	 	 	$	1,708	 	 	18	%	
							
Comprehensive income	  	$	909	 	 	$	1,094	 	 	-17	%	 	$	1,958	 	 	$	1,876	 	 	4	%	
							
Operating cash flow	  	$	1,484	 	 	$	1,333	 	 	11	%	 	$	3,878	 	 	$	3,301	 	 	17	%	
							
Combined ratio	  				 				 			 				 				 			
Loss and loss expense ratio	  	 	62.5	%	 	 	60.2	%	 			 	 	62.0	%	 	 	61.0	%	 			
Underwriting and administrative expense ratio	  	 	26.0	%	 	 	25.6	%	 			 	 	25.8	%	 	 	27.1	%	 			
	  	 	 	 	 	 	 	 	 			 	 	 	 	 	 	 	 	 			
Combined ratio	  	 	88.5	%	 	 	85.8	%	 			 	 	87.8	%	 	 	88.1	%	 			
							
Annualized ROE *	  	 	18.1	%	 	 	20.6	%	 			 	 	18.1	%	 	 	18.4	%	 			
Annualized ROE, excluding FAS 115 *	  	 	18.6	%	 	 	21.0	%	 			 	 	18.8	%	 	 	19.1	%	 			
							
Effective tax rate on income excluding net realized gains (losses) and cumulative effect	  	 	17	%	 	 	21	%	 			 	 	18	%	 	 	20	%	 			
							
Diluted earnings per share	  				 				 			 				 				 			
Income excluding net realized gains (losses) and cumulative effect (1) 	  	$	2.06	 	 	$	1.96	 	 	5	%	 	$	6.02	 	 	$	5.13	 	 	17	%	
Net income	  	$	1.95	 	 	$	1.73	 	 	13	%	 	$	5.98	 	 	$	4.92	 	 	22	%	
							
Book value per ordinary share	  	$	46.98	 	 	$	39.74	 	 	18	%	 	$	46.98	 	 	$	39.74	 	 	18	%	
Tangible book value per ordinary share	  	$	38.69	 	 	$	31.60	 	 	22	%	 	$	38.69	 	 	$	31.60	 	 	22	%	
							
Weighted average basic ordinary shares outstanding	  	 	325.2	 	 	 	321.9	 	 			 	 	324.7	 	 	 	321.5	 	 			
Weighted average diluted ordinary shares outstanding	  	 	330.6	 	 	 	326.7	 	 			 	 	330.1	 	 	 	326.5	 	 			
Debt/ total capitalization	  	 	11.6	%	 	 	13.4	%	 			 	 	11.6	%	 	 	13.4	%	 			
 
(1)	See page 21 Non-GAAP Financial Measures.	
 
*	Calculated using income excluding net realized gains (losses) and cumulative effect of a change in accounting principle (cumulative effect)	

Financial Highlights	  	Page 1	

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

 	  	3Q-07	 	 	2Q-07	 	 	1Q-07	 	 	4Q-06	 	 	3Q-06	 	 	YTD
2007	 	 	YTD
2006	 	 	Full Year
2006	 	
Property and Casualty	  				 				 				 				 				 				 				 				
Gross premiums written	  	$	4,363	 	 	$	4,545	 	 	$	4,406	 	 	$	3,932	 	 	$	4,228	 	 	$	13,314	 	 	$	13,195	 	 	$	17,127	 	
Net premiums written	  	 	2,705	 	 	 	2,995	 	 	 	3,182	 	 	 	2,786	 	 	 	2,721	 	 	 	8,882	 	 	 	8,970	 	 	 	11,756	 	
Net premiums earned	  	 	3,055	 	 	 	2,921	 	 	 	2,994	 	 	 	2,948	 	 	 	3,019	 	 	 	8,970	 	 	 	8,603	 	 	 	11,551	 	
Losses and loss expenses	  	 	1,910	 	 	 	1,793	 	 	 	1,860	 	 	 	1,824	 	 	 	1,818	 	 	 	5,563	 	 	 	5,246	 	 	 	7,070	 	
Policy acquisition costs	  	 	450	 	 	 	422	 	 	 	406	 	 	 	424	 	 	 	430	 	 	 	1,278	 	 	 	1,265	 	 	 	1,689	 	
Administrative expenses	  	 	345	 	 	 	344	 	 	 	344	 	 	 	353	 	 	 	345	 	 	 	1,033	 	 	 	1,068	 	 	 	1,421	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
P&C underwriting income	  	$	350	 	 	$	362	 	 	$	384	 	 	$	347	 	 	$	426	 	 	$	1,096	 	 	$	1,024	 	 	$	1,371	 	
									
Life underwriting income excluding investment income	  	 	30	 	 	 	30	 	 	 	29	 	 	 	25	 	 	 	25	 	 	 	89	 	 	 	65	 	 	 	90	 	
Net investment income	  	 	492	 	 	 	471	 	 	 	451	 	 	 	428	 	 	 	414	 	 	 	1,414	 	 	 	1,173	 	 	 	1,601	 	
Net realized gains (losses)	  	 	—  	 	 	 	(11	)	 	 	16	 	 	 	15	 	 	 	(113	)	 	 	5	 	 	 	(113	)	 	 	(98	)	
Interest expense	  	 	44	 	 	 	42	 	 	 	46	 	 	 	42	 	 	 	46	 	 	 	132	 	 	 	134	 	 	 	176	 	
Other (income) expense (3) 	  	 	32	 	 	 	(4	)	 	 	4	 	 	 	(16	)	 	 	(2	)	 	 	32	 	 	 	(19	)	 	 	(35	)	
Income tax expense (benefit)	  	 	140	 	 	 	165	 	 	 	129	 	 	 	124	 	 	 	130	 	 	 	434	 	 	 	398	 	 	 	522	 	
Cumulative effect of a change in accounting principle, net of tax	  	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	4	 	 	 	4	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income	  	$	656	 	 	$	649	 	 	$	701	 	 	$	665	 	 	$	578	 	 	$	2,006	 	 	$	1,640	 	 	$	2,305	 	
									
Net realized gains (losses)	  	 	—  	 	 	 	(11	)	 	 	16	 	 	 	15	 	 	 	(113	)	 	 	5	 	 	 	(113	)	 	 	(98	)	
Net realized gains (losses) in other (income) expense	  	 	(38	)	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	(38	)	 	 	—  	 	 	 	—  	 	
Tax expense (benefit) on net realized gains (losses)	  	 	(2	)	 	 	4	 	 	 	(22	)	 	 	(7	)	 	 	(39	)	 	 	(20	)	 	 	(41	)	 	 	(48	)	
Cumulative effect of a change in accounting principle, net of tax	  	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	4	 	 	 	4	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income excluding net realized gains (losses) and cumulative effect (2) 	  	$	692	 	 	$	664	 	 	$	663	 	 	$	643	 	 	$	652	 	 	$	2,019	 	 	$	1,708	 	 	$	2,351	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
% Change versus prior year period (1) 	  				 				 				 				 				 				 				 				
Property and Casualty net premiums written	  	 	-1	%	 	 	0	%	 	 	-2	%	 	 	9	%	 	 	-4	%	 	 	-1	%	 	 	0	%	 	 	2	%	
Property and Casualty net premiums earned	  	 	1	%	 	 	3	%	 	 	9	%	 	 	6	%	 	 	0	%	 	 	4	%	 	 	-1	%	 	 	0	%	
									
Other ratios	  				 				 				 				 				 				 				 				
Net premiums written/gross premiums written	  	 	62	%	 	 	66	%	 	 	72	%	 	 	71	%	 	 	64	%	 	 	67	%	 	 	68	%	 	 	69	%	
Effective tax rate on income excluding net realized gains (losses) and cumulative effect	  	 	17	%	 	 	20	%	 	 	19	%	 	 	17	%	 	 	21	%	 	 	18	%	 	 	20	%	 	 	20	%	
									
Combined ratio (1) 	  				 				 				 				 				 				 				 				
Loss and loss expense ratio	  	 	62.5	%	 	 	61.4	%	 	 	62.1	%	 	 	61.8	%	 	 	60.2	%	 	 	62.0	%	 	 	61.0	%	 	 	61.2	%	
Policy acquisition cost ratio	  	 	14.7	%	 	 	14.5	%	 	 	13.5	%	 	 	14.4	%	 	 	14.2	%	 	 	14.3	%	 	 	14.7	%	 	 	14.6	%	
Administrative expense ratio	  	 	11.3	%	 	 	11.7	%	 	 	11.5	%	 	 	12.0	%	 	 	11.4	%	 	 	11.5	%	 	 	12.4	%	 	 	12.3	%	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Combined ratio	  	 	88.5	%	 	 	87.6	%	 	 	87.1	%	 	 	88.2	%	 	 	85.8	%	 	 	87.8	%	 	 	88.1	%	 	 	88.1	%	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net premiums earned A&H	  	$	418	 	 	$	420	 	 	$	394	 	 	$	378	 	 	$	356	 	 	$	1,232	 	 	$	1,049	 	 	$	1,427	 	
Expense ratio P&C	  	 	26.0	%	 	 	26.2	%	 	 	25.0	%	 	 	26.4	%	 	 	25.6	%	 	 	25.8	%	 	 	27.1	%	 	 	26.9	%	
Expense ratio excluding A&H	  	 	22.8	%	 	 	23.6	%	 	 	21.9	%	 	 	23.8	%	 	 	23.2	%	 	 	22.7	%	 	 	24.9	%	 	 	24.5	%	
									
Large losses and other items (1) 	  				 				 				 				 				 				 				 				
Catastrophe and other large losses (before tax)	  	$	21	 	 	$	81	 	 	$	34	 	 	$	6	 	 	$	6	 	 	$	136	 	 	$	11	 	 	$	17	 	
Prior period development - unfavorable (favorable)	  	$	(70	)	 	$	(40	)	 	$	(18	)	 	$	17	 	 	$	17	 	 	$	(128	)	 	$	(29	)	 	$	(12	)	
 
(1)	Property and casualty excluding Life is presented to allow for comparison and analysis with earnings guidance. This is a non-GAAP measure.	
 
(2)	See page 21 Non-GAAP Financial Measures.	
 
(3)	Includes $38 million of net realized investment and derivative losses related to our unconsolidated insurance affiliates.	

Consolidated Results	  	Page 2	

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

 	  	September 30
2007	  	June 30
2007	  	March 31
2007	  	December 31
2006	
 	  	(Unaudited)	  	(Unaudited)	  	(Unaudited)	  	(Audited)	
Assets	  			  			  			  			
Fixed maturities available for sale, at fair value	  	$	32,632	  	$	30,591	  	$	29,934	  	$	28,540	
Fixed maturities held to maturity, at amortized cost	  	 	2,979	  	 	3,013	  	 	3,060	  	 	3,047	
Equity securities, at fair value	  	 	1,866	  	 	1,896	  	 	1,772	  	 	1,713	
Short-term investments, at fair value	  	 	2,940	  	 	2,919	  	 	2,658	  	 	2,456	
Other investments	  	 	1,050	  	 	934	  	 	896	  	 	845	
	  	 	 	  	 	 	  	 	 	  	 	 	
Total investments	  	 	41,467	  	 	39,353	  	 	38,320	  	 	36,601	
					
Cash	  	 	506	  	 	621	  	 	639	  	 	565	
Securities lending collateral	  	 	2,301	  	 	2,811	  	 	2,905	  	 	2,171	
Insurance and reinsurance balances receivable	  	 	3,324	  	 	3,923	  	 	3,689	  	 	3,580	
Reinsurance recoverable	  	 	14,218	  	 	14,081	  	 	14,374	  	 	14,580	
Deferred policy acquisition costs	  	 	1,138	  	 	1,160	  	 	1,133	  	 	1,077	
Prepaid reinsurance premiums	  	 	1,687	  	 	1,854	  	 	1,621	  	 	1,586	
Goodwill	  	 	2,731	  	 	2,731	  	 	2,731	  	 	2,731	
Deferred tax assets	  	 	1,163	  	 	1,163	  	 	1,192	  	 	1,165	
Investments in partially owned insurance companies	  	 	786	  	 	826	  	 	804	  	 	789	
Other assets	  	 	2,633	  	 	2,497	  	 	2,366	  	 	2,290	
	  	 	 	  	 	 	  	 	 	  	 	 	
Total assets	  	$	71,954	  	$	71,020	  	$	69,774	  	$	67,135	
	  	 	 	  	 	 	  	 	 	  	 	 	
Liabilities	  			  			  			  			
Unpaid losses and loss expenses	  	$	36,868	  	$	36,123	  	$	35,813	  	$	35,517	
Unearned premiums	  	 	6,542	  	 	7,001	  	 	6,670	  	 	6,437	
Future policy benefits for life and annuity contracts	  	 	527	  	 	521	  	 	521	  	 	518	
Insurance and reinsurance balances payable	  	 	2,592	  	 	2,690	  	 	2,511	  	 	2,449	
Deposit liabilities	  	 	355	  	 	363	  	 	327	  	 	335	
Securities lending payable	  	 	2,301	  	 	2,811	  	 	2,905	  	 	2,171	
Payable for securities purchased	  	 	2,407	  	 	2,257	  	 	1,338	  	 	1,286	
Accounts payable, accrued expenses and other liabilities	  	 	1,689	  	 	1,445	  	 	1,514	  	 	1,541	
Income taxes payable	  	 	174	  	 	168	  	 	265	  	 	156	
Short-term debt	  	 	87	  	 	85	  	 	581	  	 	578	
Long-term debt	  	 	2,068	  	 	2,063	  	 	2,061	  	 	1,560	
Trust preferred securities	  	 	309	  	 	309	  	 	309	  	 	309	
	  	 	 	  	 	 	  	 	 	  	 	 	
Total liabilities	  	 	55,919	  	 	55,836	  	 	54,815	  	 	52,857	
					
Shareholders’ equity	  			  			  			  			
Total shareholders’ equity, excl. AOCI	  	 	15,379	  	 	14,781	  	 	14,181	  	 	13,562	
Accumulated other comprehensive income (AOCI)	  	 	656	  	 	403	  	 	778	  	 	716	
	  	 	 	  	 	 	  	 	 	  	 	 	
Total shareholders’ equity	  	 	16,035	  	 	15,184	  	 	14,959	  	 	14,278	
	  	 	 	  	 	 	  	 	 	  	 	 	
Total liabilities and shareholders’ equity	  	$	71,954	  	$	71,020	  	$	69,774	  	$	67,135	
	  	 	 	  	 	 	  	 	 	  	 	 	
Book value per ordinary share (1) 	  	$	46.98	  	$	44.46	  	$	43.87	  	$	42.03	
Tangible book value per ordinary share (1) 	  	$	38.69	  	$	36.16	  	$	35.55	  	$	33.66	
 
(1)	See page 21 Non-GAAP Financial Measures.	

Consol Bal Sheet	  	Page 3	

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

 	  	3Q-07	  	% of
Total
Consolidated	 	 	3Q-06	  	% of
Total
Consolidated	 	 	% Change
3Q-07 vs.
3Q-06	 	 	YTD
2007	  	% of
Total
Consolidated	 	 	YTD
2006	  	% of
Total
Consolidated	 	 	% Change
YTD-07 vs.
YTD-06	 	
Net premiums written	  			  			 			  			 			 			  			 			  			 			
Property and all other	  	$	937	  	34	%	 	$	892	  	32	%	 	5	%	 	$	2,937	  	32	%	 	$	2,943	  	32	%	 	0	%	
Casualty	  	 	1,371	  	49	%	 	 	1,494	  	54	%	 	-8	%	 	 	4,697	  	51	%	 	 	4,965	  	54	%	 	-5	%	
Personal accident (A&H)	  	 	397	  	14	%	 	 	335	  	12	%	 	19	%	 	 	1,248	  	14	%	 	 	1,062	  	12	%	 	18	%	
	  	 	 	  	 	 	 	 	 	  	 	 	 	 	 	 	 	 	  	 	 	 	 	 	  	 	 	 	 	 	
Total P&C	  	 	2,705	  	97	%	 	 	2,721	  	98	%	 	-1	%	 	 	8,882	  	97	%	 	 	8,970	  	98	%	 	-1	%	
	  	 	 	  	 	 	 	 	 	  	 	 	 	 	 	 	 	 	  	 	 	 	 	 	  	 	 	 	 	 	
Life	  	 	95	  	3	%	 	 	69	  	2	%	 	38	%	 	 	270	  	3	%	 	 	196	  	2	%	 	38	%	
	  	 	 	  	 	 	 	 	 	  	 	 	 	 	 	 	 	 	  	 	 	 	 	 	  	 	 	 	 	 	
Total Consolidated	  	$	2,800	  	100	%	 	$	2,790	  	100	%	 	0	%	 	$	9,152	  	100	%	 	$	9,166	  	100	%	 	0	%	
	  	 	 	  	 	 	 	 	 	  	 	 	 	 	 	 	 	 	  	 	 	 	 	 	  	 	 	 	 	 	
Net premiums earned	  			  			 			  			 			 			  			 			  			 			
Property and all other	  	$	1,060	  	34	%	 	$	1,013	  	33	%	 	5	%	 	$	2,830	  	31	%	 	$	2,694	  	31	%	 	5	%	
Casualty	  	 	1,577	  	50	%	 	 	1,650	  	53	%	 	-4	%	 	 	4,908	  	53	%	 	 	4,860	  	55	%	 	1	%	
Personal accident (A&H)	  	 	418	  	13	%	 	 	356	  	12	%	 	17	%	 	 	1,232	  	13	%	 	 	1,049	  	12	%	 	17	%	
	  	 	 	  	 	 	 	 	 	  	 	 	 	 	 	 	 	 	  	 	 	 	 	 	  	 	 	 	 	 	
Total P&C	  	 	3,055	  	97	%	 	 	3,019	  	98	%	 	1	%	 	 	8,970	  	97	%	 	 	8,603	  	98	%	 	4	%	
	  	 	 	  	 	 	 	 	 	  	 	 	 	 	 	 	 	 	  	 	 	 	 	 	  	 	 	 	 	 	
Life	  	 	95	  	3	%	 	 	69	  	2	%	 	38	%	 	 	270	  	3	%	 	 	196	  	2	%	 	38	%	
	  	 	 	  	 	 	 	 	 	  	 	 	 	 	 	 	 	 	  	 	 	 	 	 	  	 	 	 	 	 	
Total Consolidated	  	$	3,150	  	100	%	 	$	3,088	  	100	%	 	2	%	 	$	9,240	  	100	%	 	$	8,799	  	100	%	 	5	%	

			
Line of Business	  	Page 4	

																	
	  	ACE Limited	
	  	Consolidating Statement of Operations	
	  	Three months ended September 30, 2007 and 2006	
	  	(in millions of U.S. dollars)	
	  	(Unaudited)	

 	  	Insurance -
North
American	 	 	Insurance -
Overseas
General	 	 	Global
Reinsurance	 	 	Corporate
& Other	 	 	Consolidated
P&C	 	 	Life Insurance
& Reinsurance	 	 	ACE
Consolidated	 	
September 30, 2007	  				 				 				 				 				 				 				
Gross premiums written	  	$	2,708	 	 	$	1,427	 	 	$	228	 	 	$	—  	 	 	$	4,363	 	 	$	100	 	 	$	4,463	 	
Net premiums written	  	 	1,449	 	 	 	1,041	 	 	 	215	 	 	 	—  	 	 	 	2,705	 	 	 	95	 	 	 	2,800	 	
Net premiums earned	  	 	1,595	 	 	 	1,141	 	 	 	319	 	 	 	—  	 	 	 	3,055	 	 	 	95	 	 	 	3,150	 	
Losses and loss expenses	  	 	1,138	 	 	 	611	 	 	 	161	 	 	 	—  	 	 	 	1,910	 	 	 	—  	 	 	 	1,910	 	
Life and annuity benefits	  	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	39	 	 	 	39	 	
Policy acquisition costs	  	 	150	 	 	 	240	 	 	 	60	 	 	 	—  	 	 	 	450	 	 	 	13	 	 	 	463	 	
Administrative expenses	  	 	129	 	 	 	170	 	 	 	14	 	 	 	32	 	 	 	345	 	 	 	13	 	 	 	358	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Underwriting income (loss)	  	 	178	 	 	 	120	 	 	 	84	 	 	 	(32	)	 	 	350	 	 	 	30	 	 	 	380	 	
								
Net investment income	  	 	260	 	 	 	116	 	 	 	69	 	 	 	33	 	 	 	478	 	 	 	14	 	 	 	492	 	
Net realized gains (losses)	  	 	29	 	 	 	(5	)	 	 	25	 	 	 	2	 	 	 	51	 	 	 	(51	)	 	 	—  	 	
Interest expense	  	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	44	 	 	 	44	 	 	 	—  	 	 	 	44	 	
Other (income) expense	  	 	1	 	 	 	(12	)	 	 	—  	 	 	 	43	 	 	 	32	 	 	 	—  	 	 	 	32	 	
Income tax expense (benefit)	  	 	125	 	 	 	26	 	 	 	11	 	 	 	(19	)	 	 	143	 	 	 	(3	)	 	 	140	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income (loss)	  	 	341	 	 	 	217	 	 	 	167	 	 	 	(65	)	 	 	660	 	 	 	(4	)	 	 	656	 	
								
Net realized gains (losses)	  	 	29	 	 	 	(5	)	 	 	25	 	 	 	2	 	 	 	51	 	 	 	(51	)	 	 	—  	 	
Net realized gains (losses) in other (income) expense	  	 	—  	 	 	 	11	 	 	 	—  	 	 	 	(49	)	 	 	(38	)	 	 	—  	 	 	 	(38	)	
Tax expense (benefit) on net realized gains (losses)	  	 	—  	 	 	 	(1	)	 	 	—  	 	 	 	(1	)	 	 	(2	)	 	 	—  	 	 	 	(2	)	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income (loss) excluding net realized gains (losses) (1) 	  	$	312	 	 	$	210	 	 	$	142	 	 	$	(19	)	 	$	645	 	 	$	47	 	 	$	692	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
September 30, 2006	  				 				 				 				 				 				 				
Gross premiums written	  	$	2,550	 	 	$	1,387	 	 	$	291	 	 	$	—  	 	 	$	4,228	 	 	$	69	 	 	$	4,297	 	
Net premiums written	  	 	1,459	 	 	 	978	 	 	 	284	 	 	 	—  	 	 	 	2,721	 	 	 	69	 	 	 	2,790	 	
Net premiums earned	  	 	1,547	 	 	 	1,099	 	 	 	373	 	 	 	—  	 	 	 	3,019	 	 	 	69	 	 	 	3,088	 	
Losses and loss expenses	  	 	1,090	 	 	 	532	 	 	 	196	 	 	 	—  	 	 	 	1,818	 	 	 	—  	 	 	 	1,818	 	
Life and annuity benefits	  	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	29	 	 	 	29	 	
Policy acquisition costs	  	 	142	 	 	 	217	 	 	 	71	 	 	 	—  	 	 	 	430	 	 	 	7	 	 	 	437	 	
Administrative expenses	  	 	129	 	 	 	155	 	 	 	16	 	 	 	45	 	 	 	345	 	 	 	8	 	 	 	353	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Underwriting income (loss)	  	 	186	 	 	 	195	 	 	 	90	 	 	 	(45	)	 	 	426	 	 	 	25	 	 	 	451	 	
								
Net investment income	  	 	228	 	 	 	97	 	 	 	56	 	 	 	22	 	 	 	403	 	 	 	11	 	 	 	414	 	
Net realized gains (losses)	  	 	(34	)	 	 	(32	)	 	 	2	 	 	 	(35	)	 	 	(99	)	 	 	(14	)	 	 	(113	)	
Interest expense	  	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	46	 	 	 	46	 	 	 	—  	 	 	 	46	 	
Other (income) expense	  	 	11	 	 	 	(3	)	 	 	1	 	 	 	(11	)	 	 	(2	)	 	 	—  	 	 	 	(2	)	
Income tax expense (benefit)	  	 	74	 	 	 	63	 	 	 	9	 	 	 	(16	)	 	 	130	 	 	 	—  	 	 	 	130	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income (loss)	  	 	295	 	 	 	200	 	 	 	138	 	 	 	(77	)	 	 	556	 	 	 	22	 	 	 	578	 	
								
Net realized gains (losses)	  	 	(34	)	 	 	(32	)	 	 	2	 	 	 	(35	)	 	 	(99	)	 	 	(14	)	 	 	(113	)	
Tax expense (benefit) on net realized gains (losses)	  	 	(32	)	 	 	(6	)	 	 	(1	)	 	 	—  	 	 	 	(39	)	 	 	—  	 	 	 	(39	)	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income (loss) excluding net realized gains (losses) (1) 	  	$	297	 	 	$	226	 	 	$	135	 	 	$	(42	)	 	$	616	 	 	$	36	 	 	$	652	 	

 
(1)	See page 21 Non-GAAP Financial Measures.	

Segment 2007 Qtr	  	Page 5	

																	
	  	ACE Limited	
	  	Consolidating Statement of Operations	
	  	Nine months ended September 30, 2007 and 2006	
	  	(in millions of U.S. dollars)	
	  	(Unaudited)	

 	  	Insurance -
North
American	 	 	Insurance -
Overseas
General	 	 	Global
Reinsurance	 	 	Corporate
& Other	 	 	Consolidated
P&C	 	 	Life Insurance
& Reinsurance	 	 	ACE
Consolidated	 	
September 30, 2007	  				 				 				 				 				 				 				
Gross premiums written	  	$	7,566	 	 	$	4,707	 	 	$	1,041	 	 	$	—  	 	 	$	13,314	 	 	$	282	 	 	$	13,596	 	
Net premiums written	  	 	4,460	 	 	 	3,399	 	 	 	1,023	 	 	 	—  	 	 	 	8,882	 	 	 	270	 	 	 	9,152	 	
Net premiums earned	  	 	4,589	 	 	 	3,394	 	 	 	987	 	 	 	—  	 	 	 	8,970	 	 	 	270	 	 	 	9,240	 	
Losses and loss expenses	  	 	3,265	 	 	 	1,789	 	 	 	509	 	 	 	—  	 	 	 	5,563	 	 	 	—  	 	 	 	5,563	 	
Life and annuity benefits	  	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	108	 	 	 	108	 	
Policy acquisition costs	  	 	394	 	 	 	694	 	 	 	190	 	 	 	—  	 	 	 	1,278	 	 	 	36	 	 	 	1,314	 	
Administrative expenses	  	 	392	 	 	 	494	 	 	 	47	 	 	 	100	 	 	 	1,033	 	 	 	37	 	 	 	1,070	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Underwriting income (loss)	  	 	538	 	 	 	417	 	 	 	241	 	 	 	(100	)	 	 	1,096	 	 	 	89	 	 	 	1,185	 	
								
Net investment income	  	 	758	 	 	 	331	 	 	 	201	 	 	 	84	 	 	 	1,374	 	 	 	40	 	 	 	1,414	 	
Net realized gains (losses)	  	 	81	 	 	 	(58	)	 	 	24	 	 	 	14	 	 	 	61	 	 	 	(56	)	 	 	5	 	
Interest expense	  	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	132	 	 	 	132	 	 	 	—  	 	 	 	132	 	
Other (income) expense	  	 	11	 	 	 	(8	)	 	 	3	 	 	 	26	 	 	 	32	 	 	 	—  	 	 	 	32	 	
Income tax expense (benefit)	  	 	368	 	 	 	124	 	 	 	25	 	 	 	(79	)	 	 	438	 	 	 	(4	)	 	 	434	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income (loss)	  	 	998	 	 	 	574	 	 	 	438	 	 	 	(81	)	 	 	1,929	 	 	 	77	 	 	 	2,006	 	
								
Net realized gains (losses)	  	 	81	 	 	 	(58	)	 	 	24	 	 	 	14	 	 	 	61	 	 	 	(56	)	 	 	5	 	
Net realized gains (losses) in other (income) expense	  	 	—  	 	 	 	11	 	 	 	—  	 	 	 	(49	)	 	 	(38	)	 	 	—  	 	 	 	(38	)	
Tax expense (benefit) on net realized gains (losses)	  	 	23	 	 	 	(13	)	 	 	(1	)	 	 	(29	)	 	 	(20	)	 	 	—  	 	 	 	(20	)	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income (loss) excluding net realized gains (losses) (1) 	  	$	940	 	 	$	608	 	 	$	413	 	 	$	(75	)	 	$	1,886	 	 	$	133	 	 	$	2,019	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
September 30, 2006	  				 				 				 				 				 				 				
Gross premiums written	  	$	7,427	 	 	$	4,456	 	 	$	1,312	 	 	$	—  	 	 	$	13,195	 	 	$	196	 	 	$	13,391	 	
Net premiums written	  	 	4,464	 	 	 	3,207	 	 	 	1,299	 	 	 	—  	 	 	 	8,970	 	 	 	196	 	 	 	9,166	 	
Net premiums earned	  	 	4,248	 	 	 	3,224	 	 	 	1,131	 	 	 	—  	 	 	 	8,603	 	 	 	196	 	 	 	8,799	 	
Losses and loss expenses	  	 	2,972	 	 	 	1,683	 	 	 	590	 	 	 	1	 	 	 	5,246	 	 	 	—  	 	 	 	5,246	 	
Life and annuity benefits	  	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	91	 	 	 	91	 	
Policy acquisition costs	  	 	408	 	 	 	630	 	 	 	227	 	 	 	—  	 	 	 	1,265	 	 	 	17	 	 	 	1,282	 	
Administrative expenses	  	 	370	 	 	 	452	 	 	 	48	 	 	 	198	 	 	 	1,068	 	 	 	23	 	 	 	1,091	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Underwriting income (loss)	  	 	498	 	 	 	459	 	 	 	266	 	 	 	(199	)	 	 	1,024	 	 	 	65	 	 	 	1,089	 	
								
Net investment income	  	 	643	 	 	 	273	 	 	 	159	 	 	 	68	 	 	 	1,143	 	 	 	30	 	 	 	1,173	 	
Net realized gains (losses)	  	 	(72	)	 	 	(24	)	 	 	(7	)	 	 	13	 	 	 	(90	)	 	 	(23	)	 	 	(113	)	
Interest expense	  	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	134	 	 	 	134	 	 	 	—  	 	 	 	134	 	
Other (income) expense	  	 	11	 	 	 	3	 	 	 	6	 	 	 	(39	)	 	 	(19	)	 	 	—  	 	 	 	(19	)	
Income tax expense (benefit)	  	 	263	 	 	 	163	 	 	 	29	 	 	 	(56	)	 	 	399	 	 	 	(1	)	 	 	398	 	
Cumulative effect of a change in accounting principle, net of tax	  	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	4	 	 	 	4	 	 	 	—  	 	 	 	4	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income (loss)	  	 	795	 	 	 	542	 	 	 	383	 	 	 	(153	)	 	 	1,567	 	 	 	73	 	 	 	1,640	 	
								
Net realized gains (losses)	  	 	(72	)	 	 	(24	)	 	 	(7	)	 	 	13	 	 	 	(90	)	 	 	(23	)	 	 	(113	)	
Tax expense (benefit) on net realized gains (losses)	  	 	(39	)	 	 	1	 	 	 	(2	)	 	 	(1	)	 	 	(41	)	 	 	—  	 	 	 	(41	)	
Cumulative effect of a change in accounting principle, net of tax	  	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	4	 	 	 	4	 	 	 	—  	 	 	 	4	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income (loss) excluding net realized gains (losses) (1) 	  	$	828	 	 	$	567	 	 	$	388	 	 	$	(171	)	 	$	1,612	 	 	$	96	 	 	$	1,708	 	

(1)	See page 21 Non-GAAP Financial Measures.	

Segment 2007 YTD	  	Page 6	

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

 	  	3Q-07	 	 	2Q-07	 	 	1Q-07	 	 	4Q-06	 	 	3Q-06	 	 	YTD
2007	 	 	YTD
2006	 	 	Full Year
2006	 	
Gross premiums written	  	$	2,708	 	 	$	2,589	 	 	$	2,269	 	 	$	2,236	 	 	$	2,550	 	 	$	7,566	 	 	$	7,427	 	 	$	9,663	 	
Net premiums written	  	 	1,449	 	 	 	1,497	 	 	 	1,514	 	 	 	1,476	 	 	 	1,459	 	 	 	4,460	 	 	 	4,464	 	 	 	5,940	 	
Net premiums earned	  	 	1,595	 	 	 	1,455	 	 	 	1,539	 	 	 	1,471	 	 	 	1,547	 	 	 	4,589	 	 	 	4,248	 	 	 	5,719	 	
Losses and loss expenses	  	 	1,138	 	 	 	1,016	 	 	 	1,111	 	 	 	1,054	 	 	 	1,090	 	 	 	3,265	 	 	 	2,972	 	 	 	4,026	 	
Policy acquisition costs	  	 	150	 	 	 	128	 	 	 	116	 	 	 	122	 	 	 	142	 	 	 	394	 	 	 	408	 	 	 	530	 	
Administrative expenses	  	 	129	 	 	 	130	 	 	 	133	 	 	 	132	 	 	 	129	 	 	 	392	 	 	 	370	 	 	 	502	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Underwriting income	  	 	178	 	 	 	181	 	 	 	179	 	 	 	163	 	 	 	186	 	 	 	538	 	 	 	498	 	 	 	661	 	
									
Net investment income	  	 	260	 	 	 	257	 	 	 	241	 	 	 	233	 	 	 	228	 	 	 	758	 	 	 	643	 	 	 	876	 	
Net realized gains (losses)	  	 	29	 	 	 	15	 	 	 	37	 	 	 	(11	)	 	 	(34	)	 	 	81	 	 	 	(72	)	 	 	(83	)	
Interest expense	  	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	
Other (income) expense	  	 	1	 	 	 	1	 	 	 	9	 	 	 	(13	)	 	 	11	 	 	 	11	 	 	 	11	 	 	 	(2	)	
Income tax expense (benefit)	  	 	125	 	 	 	115	 	 	 	128	 	 	 	89	 	 	 	74	 	 	 	368	 	 	 	263	 	 	 	352	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income	  	 	341	 	 	 	337	 	 	 	320	 	 	 	309	 	 	 	295	 	 	 	998	 	 	 	795	 	 	 	1,104	 	
									
Net realized gains (losses)	  	 	29	 	 	 	15	 	 	 	37	 	 	 	(11	)	 	 	(34	)	 	 	81	 	 	 	(72	)	 	 	(83	)	
Tax expense (benefit) on net realized gains (losses)	  	 	—  	 	 	 	8	 	 	 	15	 	 	 	(16	)	 	 	(32	)	 	 	23	 	 	 	(39	)	 	 	(55	)	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income excluding net realized gains (losses) (1) 	  	$	312	 	 	$	330	 	 	$	298	 	 	$	304	 	 	$	297	 	 	$	940	 	 	$	828	 	 	$	1,132	 	

Combined ratio	  				 				 				 				 				 				 				 				
Loss and loss expense ratio	  	 	71.3	%	 	 	69.8	%	 	 	72.2	%	 	 	71.7	%	 	 	70.4	%	 	 	71.1	%	 	 	70.0	%	 	 	70.4	%	
Policy acquisition cost ratio	  	 	9.4	%	 	 	8.8	%	 	 	7.5	%	 	 	8.3	%	 	 	9.1	%	 	 	8.6	%	 	 	9.6	%	 	 	9.2	%	
Administrative expense ratio	  	 	8.1	%	 	 	8.9	%	 	 	8.7	%	 	 	8.9	%	 	 	8.4	%	 	 	8.5	%	 	 	8.7	%	 	 	8.8	%	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Combined ratio	  	 	88.8	%	 	 	87.5	%	 	 	88.4	%	 	 	88.9	%	 	 	87.9	%	 	 	88.2	%	 	 	88.3	%	 	 	88.4	%	

Large losses and other items (before tax)	  				 				 				 				 				 				 				 				
Catastrophe and other large losses (before tax)	  	$	—  	 	 	$	16	 	 	$	—  	 	 	$	—  	 	 	$	—  	 	 	$	16	 	 	$	—  	 	 	$	—  	 	
Prior period development - unfavorable (favorable)	  	$	4	 	 	$	(6	)	 	$	10	 	 	$	20	 	 	$	30	 	 	$	8	 	 	$	45	 	 	$	65	 	
									
% Change versus prior year period	  				 				 				 				 				 				 				 				
Net premiums written	  	 	-1	%	 	 	0	%	 	 	1	%	 	 	16	%	 	 	-4	%	 	 	0	%	 	 	-2	%	 	 	2	%	
Net premiums earned	  	 	3	%	 	 	6	%	 	 	15	%	 	 	9	%	 	 	-3	%	 	 	8	%	 	 	-3	%	 	 	0	%	
									
Other ratios	  				 				 				 				 				 				 				 				
Net premiums written/gross premiums written	  	 	54	%	 	 	58	%	 	 	67	%	 	 	66	%	 	 	57	%	 	 	59	%	 	 	60	%	 	 	61	%	
 
(1)	See page 21 Non-GAAP Financial Measures.	

Insurance-North American	  	Page 7	

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

 	  	3Q-07	 	 	2Q-07	 	 	1Q-07	 	 	4Q-06	 	 	3Q-06	 	 	YTD
2007	 	 	YTD
2006	 	 	Full Year
2006	 	
Gross premiums written	  	$	1,427	 	 	$	1,621	 	 	$	1,659	 	 	$	1,441	 	 	$	1,387	 	 	$	4,707	 	 	$	4,456	 	 	$	5,897	 	
Net premiums written	  	 	1,041	 	 	 	1,166	 	 	 	1,192	 	 	 	1,059	 	 	 	978	 	 	 	3,399	 	 	 	3,207	 	 	 	4,266	 	
Net premiums earned	  	 	1,141	 	 	 	1,141	 	 	 	1,112	 	 	 	1,097	 	 	 	1,099	 	 	 	3,394	 	 	 	3,224	 	 	 	4,321	 	
Losses and loss expenses	  	 	611	 	 	 	614	 	 	 	564	 	 	 	576	 	 	 	532	 	 	 	1,789	 	 	 	1,683	 	 	 	2,259	 	
Policy acquisition costs	  	 	240	 	 	 	230	 	 	 	224	 	 	 	226	 	 	 	217	 	 	 	694	 	 	 	630	 	 	 	856	 	
Administrative expenses	  	 	170	 	 	 	162	 	 	 	162	 	 	 	157	 	 	 	155	 	 	 	494	 	 	 	452	 	 	 	609	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Underwriting income	  	 	120	 	 	 	135	 	 	 	162	 	 	 	138	 	 	 	195	 	 	 	417	 	 	 	459	 	 	 	597	 	
									
Net investment income	  	 	116	 	 	 	111	 	 	 	104	 	 	 	97	 	 	 	97	 	 	 	331	 	 	 	273	 	 	 	370	 	
Net realized gains (losses)	  	 	(5	)	 	 	(27	)	 	 	(26	)	 	 	8	 	 	 	(32	)	 	 	(58	)	 	 	(24	)	 	 	(16	)	
Interest expense	  	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	
Other (income) expense	  	 	(12	)	 	 	1	 	 	 	3	 	 	 	7	 	 	 	(3	)	 	 	(8	)	 	 	3	 	 	 	10	 	
Income tax expense (benefit)	  	 	26	 	 	 	58	 	 	 	40	 	 	 	43	 	 	 	63	 	 	 	124	 	 	 	163	 	 	 	206	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income	  	 	217	 	 	 	160	 	 	 	197	 	 	 	193	 	 	 	200	 	 	 	574	 	 	 	542	 	 	 	735	 	
									
Net realized gains (losses)	  	 	(5	)	 	 	(27	)	 	 	(26	)	 	 	8	 	 	 	(32	)	 	 	(58	)	 	 	(24	)	 	 	(16	)	
Net realized gains (losses) in other (income) expense	  	 	11	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	11	 	 	 	—  	 	 	 	—  	 	
Tax expense (benefit) on net realized gains (losses)	  	 	(1	)	 	 	(4	)	 	 	(8	)	 	 	2	 	 	 	(6	)	 	 	(13	)	 	 	1	 	 	 	3	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income excluding net realized gains (losses) (1) 	  	$	210	 	 	$	183	 	 	$	215	 	 	$	187	 	 	$	226	 	 	$	608	 	 	$	567	 	 	$	754	 	

Combined ratio	  				 				 				 				 				 				 				 				
Loss and loss expense ratio	  	 	53.6	%	 	 	53.9	%	 	 	50.7	%	 	 	52.5	%	 	 	48.4	%	 	 	52.7	%	 	 	52.2	%	 	 	52.3	%	
Policy acquisition cost ratio	  	 	21.1	%	 	 	20.1	%	 	 	20.2	%	 	 	20.6	%	 	 	19.8	%	 	 	20.5	%	 	 	19.6	%	 	 	19.8	%	
Administrative expense ratio	  	 	14.8	%	 	 	14.2	%	 	 	14.5	%	 	 	14.3	%	 	 	14.0	%	 	 	14.5	%	 	 	14.0	%	 	 	14.1	%	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Combined ratio	  	 	89.5	%	 	 	88.2	%	 	 	85.4	%	 	 	87.4	%	 	 	82.2	%	 	 	87.7	%	 	 	85.8	%	 	 	86.2	%	

Large losses and other items	  				 				 				 				 				 				 				 				
Catastrophe and other large losses (before tax)	  	$	8	 	 	$	58	 	 	$	15	 	 	$	—  	 	 	$	3	 	 	 	81	 	 	$	3	 	 	$	3	 	
Prior period development - unfavorable (favorable)	  	$	(64	)	 	$	(31	)	 	$	(21	)	 	$	4	 	 	$	(16	)	 	 	(116	)	 	$	(76	)	 	$	(72	)	
									
% Change versus prior year period	  				 				 				 				 				 				 				 				
Net premiums written	  	 	6	%	 	 	8	%	 	 	4	%	 	 	4	%	 	 	5	%	 	 	6	%	 	 	1	%	 	 	2	%	
Net premiums earned	  	 	4	%	 	 	5	%	 	 	7	%	 	 	5	%	 	 	7	%	 	 	5	%	 	 	1	%	 	 	2	%	
									
Other ratios	  				 				 				 				 				 				 				 				
Net premiums written/gross premiums written	  	 	73	%	 	 	72	%	 	 	72	%	 	 	73	%	 	 	71	%	 	 	72	%	 	 	72	%	 	 	72	%	
 
(1)	See page 21 Non-GAAP Financial Measures.	

Insurance-Overseas General	  	Page 8	

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

 	  	3Q-07	 	 	2Q-07	 	 	1Q-07	 	 	4Q-06	 	 	3Q-06	 	 	YTD
2007	 	 	YTD
2006	 	 	Full Year
2006	 	
Gross premiums written	  	$	228	 	 	$	335	 	 	$	478	 	 	$	255	 	 	$	291	 	 	$	1,041	 	 	$	1,312	 	 	$	1,567	 	
Net premiums written	  	 	215	 	 	 	332	 	 	 	476	 	 	 	251	 	 	 	284	 	 	 	1,023	 	 	 	1,299	 	 	 	1,550	 	
Net premiums earned	  	 	319	 	 	 	325	 	 	 	343	 	 	 	380	 	 	 	373	 	 	 	987	 	 	 	1,131	 	 	 	1,511	 	
Losses and loss expenses	  	 	161	 	 	 	163	 	 	 	185	 	 	 	194	 	 	 	196	 	 	 	509	 	 	 	590	 	 	 	784	 	
Policy acquisition costs	  	 	60	 	 	 	64	 	 	 	66	 	 	 	76	 	 	 	71	 	 	 	190	 	 	 	227	 	 	 	303	 	
Administrative expenses	  	 	14	 	 	 	16	 	 	 	17	 	 	 	14	 	 	 	16	 	 	 	47	 	 	 	48	 	 	 	62	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Underwriting income	  	 	84	 	 	 	82	 	 	 	75	 	 	 	96	 	 	 	90	 	 	 	241	 	 	 	266	 	 	 	362	 	
									
Net investment income	  	 	69	 	 	 	66	 	 	 	66	 	 	 	62	 	 	 	56	 	 	 	201	 	 	 	159	 	 	 	221	 	
Net realized gains (losses)	  	 	25	 	 	 	(7	)	 	 	6	 	 	 	17	 	 	 	2	 	 	 	24	 	 	 	(7	)	 	 	10	 	
Interest expense	  	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	
Other (income) expense	  	 	—  	 	 	 	2	 	 	 	1	 	 	 	2	 	 	 	1	 	 	 	3	 	 	 	6	 	 	 	8	 	
Income tax expense (benefit)	  	 	11	 	 	 	7	 	 	 	7	 	 	 	9	 	 	 	9	 	 	 	25	 	 	 	29	 	 	 	38	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income	  	 	167	 	 	 	132	 	 	 	139	 	 	 	164	 	 	 	138	 	 	 	438	 	 	 	383	 	 	 	547	 	
									
Net realized gains (losses)	  	 	25	 	 	 	(7	)	 	 	6	 	 	 	17	 	 	 	2	 	 	 	24	 	 	 	(7	)	 	 	10	 	
Tax expense (benefit) on net realized gains (losses)	  	 	—  	 	 	 	—  	 	 	 	(1	)	 	 	1	 	 	 	(1	)	 	 	(1	)	 	 	(2	)	 	 	(1	)	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income excluding net realized gains (losses) (1) 	  	$	142	 	 	$	139	 	 	$	132	 	 	$	148	 	 	$	135	 	 	$	413	 	 	$	388	 	 	$	536	 	

Combined ratio	  				 				 				 				 				 				 				 				
Loss and loss expense ratio	  	 	50.6	%	 	 	50.1	%	 	 	53.8	%	 	 	50.9	%	 	 	52.5	%	 	 	51.6	%	 	 	52.2	%	 	 	51.8	%	
Policy acquisition cost ratio	  	 	18.8	%	 	 	19.9	%	 	 	19.2	%	 	 	20.1	%	 	 	19.0	%	 	 	19.3	%	 	 	20.1	%	 	 	20.1	%	
Administrative expense ratio	  	 	4.2	%	 	 	5.0	%	 	 	5.0	%	 	 	3.7	%	 	 	4.2	%	 	 	4.7	%	 	 	4.2	%	 	 	4.1	%	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Combined ratio	  	 	73.6	%	 	 	75.0	%	 	 	78.0	%	 	 	74.7	%	 	 	75.7	%	 	 	75.6	%	 	 	76.5	%	 	 	76.0	%	

Large losses and other items	  				 				 				 				 				 				 				 				
Catastrophe and other large losses (before tax)	  	$	13	 	 	$	7	 	 	$	19	 	 	$	6	 	 	$	3	 	 	 	39	 	 	$	8	 	 	$	14	 	
Prior period development - unfavorable (favorable)	  	$	(10	)	 	$	(3	)	 	$	(7	)	 	$	(7	)	 	$	3	 	 	 	(20	)	 	$	2	 	 	$	(5	)	
 
(1)	See page 21 Non-GAAP Financial Measures.	

Global Reinsurance	  	Page 9	

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

 	  	3Q-07	 	 	2Q-07	 	 	1Q-07	 	 	4Q-06	 	 	3Q-06	 	 	YTD
2007	 	 	YTD
2006	 	 	Full Year
2006	 	
% Change versus prior year period	  				 				 				 				 				 				 				 				
Net premiums written	  	 	-24	%	 	 	-20	%	 	 	-21	%	 	 	-9	%	 	 	-25	%	 	 	-21	%	 	 	2	%	 	 	0	%	
Net premiums earned	  	 	-14	%	 	 	-16	%	 	 	-8	%	 	 	-4	%	 	 	-9	%	 	 	-13	%	 	 	0	%	 	 	-1	%	
									
Other ratios	  				 				 				 				 				 				 				 				
Net premiums written/gross premiums written	  	 	94	%	 	 	99	%	 	 	100	%	 	 	98	%	 	 	98	%	 	 	98	%	 	 	99	%	 	 	99	%	
									
Global Reinsurance - By Division	  				 				 				 				 				 				 				 				
 	  	3Q-07	 	 	2Q-07	 	 	1Q-07	 	 	4Q-06	 	 	3Q-06	 	 	YTD
2007	 	 	YTD
2006	 	 	Full Year
2006	 	
Gross premiums written	  				 				 				 				 				 				 				 				
ACE Tempest Re Bermuda	  	$	51	 	 	$	121	 	 	$	174	 	 	$	16	 	 	$	53	 	 	$	346	 	 	$	370	 	 	$	386	 	
ACE Tempest Re USA	  	 	134	 	 	 	175	 	 	 	188	 	 	 	181	 	 	 	178	 	 	 	497	 	 	 	722	 	 	 	903	 	
ACE Tempest Re Europe	  	 	39	 	 	 	35	 	 	 	112	 	 	 	58	 	 	 	60	 	 	 	186	 	 	 	220	 	 	 	278	 	
ACE Tempest Re Canada	  	 	4	 	 	 	4	 	 	 	4	 	 	 	—  	 	 	 	—  	 	 	 	12	 	 	 	—  	 	 	 	—  	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total	  	$	228	 	 	$	335	 	 	$	478	 	 	$	255	 	 	$	291	 	 	$	1,041	 	 	$	1,312	 	 	$	1,567	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net premiums written	  				 				 				 				 				 				 				 				
ACE Tempest Re Bermuda	  	$	40	 	 	$	120	 	 	$	174	 	 	$	13	 	 	$	49	 	 	$	334	 	 	$	366	 	 	$	379	 	
ACE Tempest Re USA	  	 	134	 	 	 	175	 	 	 	188	 	 	 	181	 	 	 	177	 	 	 	497	 	 	 	721	 	 	 	902	 	
ACE Tempest Re Europe	  	 	37	 	 	 	33	 	 	 	110	 	 	 	57	 	 	 	58	 	 	 	180	 	 	 	212	 	 	 	269	 	
ACE Tempest Re Canada	  	 	4	 	 	 	4	 	 	 	4	 	 	 	—  	 	 	 	—  	 	 	 	12	 	 	 	—  	 	 	 	—  	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total	  	$	215	 	 	$	332	 	 	$	476	 	 	$	251	 	 	$	284	 	 	$	1,023	 	 	$	1,299	 	 	$	1,550	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net premiums earned	  				 				 				 				 				 				 				 				
ACE Tempest Re Bermuda	  	$	90	 	 	$	87	 	 	$	88	 	 	$	96	 	 	$	97	 	 	$	265	 	 	$	271	 	 	$	367	 	
ACE Tempest Re USA	  	 	167	 	 	 	177	 	 	 	187	 	 	 	216	 	 	 	210	 	 	 	531	 	 	 	656	 	 	 	872	 	
ACE Tempest Re Europe	  	 	59	 	 	 	60	 	 	 	67	 	 	 	68	 	 	 	66	 	 	 	186	 	 	 	204	 	 	 	272	 	
ACE Tempest Re Canada	  	 	3	 	 	 	1	 	 	 	1	 	 	 	—  	 	 	 	—  	 	 	 	5	 	 	 	—  	 	 	 	—  	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total	  	$	319	 	 	$	325	 	 	$	343	 	 	$	380	 	 	$	373	 	 	$	987	 	 	$	1,131	 	 	$	1,511	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net premiums written/gross premiums written	  				 				 				 				 				 				 				 				
ACE Tempest Re Bermuda	  	 	78	%	 	 	99	%	 	 	100	%	 	 	81	%	 	 	92	%	 	 	97	%	 	 	99	%	 	 	98	%	
ACE Tempest Re USA	  	 	100	%	 	 	100	%	 	 	100	%	 	 	100	%	 	 	99	%	 	 	100	%	 	 	100	%	 	 	100	%	
ACE Tempest Re Europe	  	 	95	%	 	 	94	%	 	 	98	%	 	 	98	%	 	 	97	%	 	 	97	%	 	 	96	%	 	 	97	%	
ACE Tempest Re Canada	  	 	100	%	 	 	100	%	 	 	100	%	 	 	—  	 	 	 	—  	 	 	 	100	%	 	 	—  	 	 	 	—  	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total NPW/GPW	  	 	94	%	 	 	99	%	 	 	100	%	 	 	98	%	 	 	98	%	 	 	98	%	 	 	99	%	 	 	99	%	

			
Global Reinsurance 2	  	Page 10	

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

 	  	3Q-07	 	 	2Q-07	 	 	1Q-07	 	 	4Q-06	 	 	3Q-06	 	 	YTD
2007	 	 	YTD
2006	 	 	Full Year
2006	 	
Gross premiums written (1) 	  	$	100	 	 	$	92	 	 	$	90	 	 	$	78	 	 	$	69	 	 	$	282	 	 	$	196	 	 	$	274	 	
Net premiums written	  	 	95	 	 	 	87	 	 	 	88	 	 	 	78	 	 	 	69	 	 	 	270	 	 	 	196	 	 	 	274	 	
Net premiums earned	  	 	95	 	 	 	87	 	 	 	88	 	 	 	78	 	 	 	69	 	 	 	270	 	 	 	196	 	 	 	274	 	
Life and annuity benefits	  	 	39	 	 	 	33	 	 	 	36	 	 	 	32	 	 	 	29	 	 	 	108	 	 	 	91	 	 	 	123	 	
Policy acquisition costs	  	 	13	 	 	 	12	 	 	 	11	 	 	 	9	 	 	 	7	 	 	 	36	 	 	 	17	 	 	 	26	 	
Administrative expenses	  	 	13	 	 	 	12	 	 	 	12	 	 	 	12	 	 	 	8	 	 	 	37	 	 	 	23	 	 	 	35	 	
Net investment income	  	 	14	 	 	 	14	 	 	 	12	 	 	 	12	 	 	 	11	 	 	 	40	 	 	 	30	 	 	 	42	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Life underwriting income (2) 	  	 	44	 	 	 	44	 	 	 	41	 	 	 	37	 	 	 	36	 	 	 	129	 	 	 	95	 	 	 	132	 	
Net realized gains (losses)	  	 	(51	)	 	 	(1	)	 	 	(4	)	 	 	(13	)	 	 	(14	)	 	 	(56	)	 	 	(23	)	 	 	(36	)	
Income tax expense (benefit)	  	 	(3	)	 	 	1	 	 	 	(2	)	 	 	(5	)	 	 	—  	 	 	 	(4	)	 	 	(1	)	 	 	(6	)	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income	  	 	(4	)	 	 	42	 	 	 	39	 	 	 	29	 	 	 	22	 	 	 	77	 	 	 	73	 	 	 	102	 	
Net realized gains (losses)	  	 	(51	)	 	 	(1	)	 	 	(4	)	 	 	(13	)	 	 	(14	)	 	 	(56	)	 	 	(23	)	 	 	(36	)	
Tax expense (benefit) on net realized gains (losses)	  	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income excluding net realized gains (losses) (3) 	  	$	47	 	 	$	43	 	 	$	43	 	 	$	42	 	 	$	36	 	 	$	133	 	 	$	96	 	 	$	138	 	

(1)	Consistent with GAAP, premiums collected on universal life and investment contracts are considered deposits and excluded from premium revenue. For the quarter ended September 30, 2007 and June 30, 2007, premiums collected on universal life and investment contracts that were excluded from premium revenue above aggregated to $17.4 million and $10.6 million, respectively. Previous to Q2-07, premiums collected on universal life contracts were inconsequential.	
 
(2)	We assess the performance of our Life Insurance and Reinsurance business based on life underwriting income which includes net investment income.	
 
(3)	See page 21 Non-GAAP Financial Measures.	

Life	  	Page 11	

			
	  	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, 2005	  	$	35,055	 	 	$	14,597	 	 	$	20,458	 	 	$	27,174	 	 	$	9,269	 	 	$	17,905	 	 	$	7,881	 	 	$	5,328	 	 	$	2,553	 	
										
Losses and loss expenses incurred	  	 	2,130	 	 	 	450	 	 	 	1,680	 	 	 	2,143	 	 	 	476	 	 	 	1,667	 	 	 	(13	)	 	 	(26	)	 	 	13	 	
Losses and loss expenses paid	  	 	(1,686	)	 	 	(503	)	 	 	(1,183	)	 	 	(1,486	)	 	 	(353	)	 	 	(1,133	)	 	 	(200	)	 	 	(150	)	 	 	(50	)	
Other (incl. foreign exch. revaluation)	  	 	9	 	 	 	10	 	 	 	(1	)	 	 	16	 	 	 	10	 	 	 	6	 	 	 	(7	)	 	 	—  	 	 	 	(7	)	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Balance at March 31, 2006	  	 	35,508	 	 	 	14,554	 	 	 	20,954	 	 	 	27,847	 	 	 	9,402	 	 	 	18,445	 	 	 	7,661	 	 	 	5,152	 	 	 	2,509	 	
										
Losses and loss expenses incurred	  	 	2,378	 	 	 	630	 	 	 	1,748	 	 	 	2,349	 	 	 	618	 	 	 	1,731	 	 	 	29	 	 	 	12	 	 	 	17	 	
Losses and loss expenses paid	  	 	(2,536	)	 	 	(1,082	)	 	 	(1,454	)	 	 	(2,344	)	 	 	(938	)	 	 	(1,406	)	 	 	(192	)	 	 	(144	)	 	 	(48	)	
Other (incl. foreign exch. revaluation)	  	 	214	 	 	 	69	 	 	 	145	 	 	 	212	 	 	 	69	 	 	 	143	 	 	 	2	 	 	 	—  	 	 	 	2	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Balance at June 30, 2006	  	 	35,564	 	 	 	14,171	 	 	 	21,393	 	 	 	28,064	 	 	 	9,151	 	 	 	18,913	 	 	 	7,500	 	 	 	5,020	 	 	 	2,480	 	
										
Losses and loss expenses incurred	  	 	2,582	 	 	 	764	 	 	 	1,818	 	 	 	2,588	 	 	 	797	 	 	 	1,791	 	 	 	(6	)	 	 	(33	)	 	 	27	 	
Losses and loss expenses paid	  	 	(2,395	)	 	 	(975	)	 	 	(1,420	)	 	 	(2,223	)	 	 	(893	)	 	 	(1,330	)	 	 	(172	)	 	 	(82	)	 	 	(90	)	
Other (Sale of certain run-off subsidiaries) (2) 	  	 	(789	)	 	 	(317	)	 	 	(472	)	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	(789	)	 	 	(317	)	 	 	(472	)	
Other (incl. foreign exch. revaluation)	  	 	187	 	 	 	66	 	 	 	121	 	 	 	199	 	 	 	69	 	 	 	130	 	 	 	(12	)	 	 	(3	)	 	 	(9	)	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Balance at September 30, 2006	  	 	35,149	 	 	 	13,709	 	 	 	21,440	 	 	 	28,628	 	 	 	9,124	 	 	 	19,504	 	 	 	6,521	 	 	 	4,585	 	 	 	1,936	 	
										
Losses and loss expenses incurred	  	 	2,780	 	 	 	956	 	 	 	1,824	 	 	 	2,477	 	 	 	710	 	 	 	1,767	 	 	 	303	 	 	 	246	 	 	 	57	 	
Losses and loss expenses paid	  	 	(2,613	)	 	 	(1,211	)	 	 	(1,402	)	 	 	(2,405	)	 	 	(1,078	)	 	 	(1,327	)	 	 	(208	)	 	 	(133	)	 	 	(75	)	
Other (incl. foreign exch. revaluation)	  	 	201	 	 	 	55	 	 	 	146	 	 	 	289	 	 	 	221	 	 	 	68	 	 	 	(88	)	 	 	(166	)	 	 	78	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Balance at December 31, 2006	  	 	35,517	 	 	 	13,509	 	 	 	22,008	 	 	 	28,989	 	 	 	8,977	 	 	 	20,012	 	 	 	6,528	 	 	 	4,532	 	 	 	1,996	 	
										
Losses and loss expenses incurred	  	 	2,703	 	 	 	843	 	 	 	1,860	 	 	 	2,690	 	 	 	832	 	 	 	1,858	 	 	 	13	 	 	 	11	 	 	 	2	 	
Losses and loss expenses paid	  	 	(2,363	)	 	 	(943	)	 	 	(1,420	)	 	 	(2,206	)	 	 	(797	)	 	 	(1,409	)	 	 	(157	)	 	 	(146	)	 	 	(11	)	
Other (incl. foreign exch. revaluation)	  	 	(44	)	 	 	4	 	 	 	(48	)	 	 	(44	)	 	 	4	 	 	 	(48	)	 	 	—  	 	 	 	—  	 	 	 	—  	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Balance at March 31, 2007	  	 	35,813	 	 	 	13,413	 	 	 	22,400	 	 	 	29,429	 	 	 	9,016	 	 	 	20,413	 	 	 	6,384	 	 	 	4,397	 	 	 	1,987	 	
										
Losses and loss expenses incurred	  	 	2,280	 	 	 	487	 	 	 	1,793	 	 	 	2,249	 	 	 	473	 	 	 	1,776	 	 	 	31	 	 	 	14	 	 	 	17	 	
Losses and loss expenses paid	  	 	(2,111	)	 	 	(758	)	 	 	(1,353	)	 	 	(1,977	)	 	 	(637	)	 	 	(1,340	)	 	 	(134	)	 	 	(121	)	 	 	(13	)	
Other (incl. foreign exch. revaluation)	  	 	141	 	 	 	34	 	 	 	107	 	 	 	140	 	 	 	34	 	 	 	106	 	 	 	1	 	 	 	—  	 	 	 	1	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Balance at June 30, 2007	  	 	36,123	 	 	 	13,176	 	 	 	22,947	 	 	 	29,841	 	 	 	8,886	 	 	 	20,955	 	 	 	6,282	 	 	 	4,290	 	 	 	1,992	 	
										
Losses and loss expenses incurred	  	 	3,010	 	 	 	1,100	 	 	 	1,910	 	 	 	2,999	 	 	 	1,093	 	 	 	1,906	 	 	 	11	 	 	 	7	 	 	 	4	 	
Losses and loss expenses paid	  	 	(2,429	)	 	 	(948	)	 	 	(1,481	)	 	 	(2,269	)	 	 	(833	)	 	 	(1,436	)	 	 	(160	)	 	 	(115	)	 	 	(45	)	
Other (incl. foreign exch. revaluation)	  	 	164	 	 	 	58	 	 	 	106	 	 	 	164	 	 	 	58	 	 	 	106	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Balance at September 30, 2007	  	$	36,868	 	 	$	13,386	 	 	$	23,482	 	 	$	30,735	 	 	$	9,204	 	 	$	21,531	 	 	$	6,133	 	 	$	4,182	 	 	$	1,951	 	

(1)	The run-off reserves primarily include the Brandywine group, the Commercial Insurance Service—Middle Market Workers’ Comp. reserves and the pre-1997 Westchester Specialty reserves.	
 
(2)	During the third quarter of 2006, ACE Limited completed the sale of three run-off reinsurance subsidiaries, ACE American Reinsurance Company, Brandywine Reinsurance Co. (UK) Ltd. and Brandywine Reinsurance Company S.A.-N.V. to Randall & Quilter Investment Holdings Limited.	

Loss Reserve Rollforward	  	Page 12	

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

 	  	September 30
2007	 	 	June 30
2007	 	 	March 31
2007	 	 	December 31
2006	 	
Reinsurance recoverable on paid losses and loss expenses	  				 				 				 				
Active operations	  	$	761	 	 	$	820	 	 	$	922	 	 	$	1,013	 	
Brandywine	  	 	227	 	 	 	245	 	 	 	242	 	 	 	251	 	
Westchester Run-off	  	 	29	 	 	 	33	 	 	 	42	 	 	 	36	 	
Other Run-off	  	 	13	 	 	 	16	 	 	 	17	 	 	 	16	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total	  	$	1,030	 	 	$	1,114	 	 	$	1,223	 	 	$	1,316	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Reinsurance recoverable on unpaid losses and loss expenses	  				 				 				 				
Active operations	  	$	9,753	 	 	$	9,418	 	 	$	9,505	 	 	$	9,479	 	
Brandywine	  	 	3,211	 	 	 	3,303	 	 	 	3,425	 	 	 	3,535	 	
Westchester Run-off	  	 	671	 	 	 	674	 	 	 	690	 	 	 	699	 	
Other Run-off	  	 	202	 	 	 	221	 	 	 	202	 	 	 	200	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total	  	$	13,837	 	 	$	13,616	 	 	$	13,822	 	 	$	13,913	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Gross reinsurance recoverable	  				 				 				 				
Active operations	  	$	10,514	 	 	$	10,238	 	 	$	10,427	 	 	$	10,515	 	
Brandywine	  	 	3,438	 	 	 	3,548	 	 	 	3,667	 	 	 	3,786	 	
Westchester Run-off	  	 	700	 	 	 	707	 	 	 	732	 	 	 	712	 	
Other Run-off	  	 	215	 	 	 	237	 	 	 	219	 	 	 	216	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total	  	$	14,867	 	 	$	14,730	 	 	$	15,045	 	 	$	15,229	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Provision for uncollectible reinsurance	  				 				 				 				
Active operations	  	$	(430	)	 	$	(427	)	 	$	(455	)	 	$	(427	)	
Brandywine	  	 	(164	)	 	 	(169	)	 	 	(169	)	 	 	(172	)	
Westchester Run-off	  	 	(31	)	 	 	(31	)	 	 	(30	)	 	 	(30	)	
Other Run-off	  	 	(24	)	 	 	(22	)	 	 	(17	)	 	 	(20	)	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total	  	$	(649	)	 	$	(649	)	 	$	(671	)	 	$	(649	)	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net reinsurance recoverable	  				 				 				 				
Active operations	  	$	10,084	 	 	$	9,811	 	 	$	9,972	 	 	$	10,088	 	
Brandywine	  	 	3,274	 	 	 	3,379	 	 	 	3,498	 	 	 	3,614	 	
Westchester Run-off	  	 	669	 	 	 	676	 	 	 	702	 	 	 	682	 	
Other Run-off	  	 	191	 	 	 	215	 	 	 	202	 	 	 	196	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total	  	$	14,218	 	 	$	14,081	 	 	$	14,374	 	 	$	14,580	 	

			
Reinsurance Recoverable	  	Page 13	

			
	  	ACE Limited	
	  	Reinsurance Recoverable Analysis - 2	
	  	(in millions of U.S. dollars)	
	  	(Unaudited)	
 
Reinsurance Recoverable for Active Operations

 	  	June 30, 2007	 	
 	  	Recoverable	  	Provision	  	% of Gross	 	
Categories	  			  			  			
Top 10 reinsurers	  	$	4,988	  	$	56	  	1.1	%	
Other reinsurers balances >$20 million	  	 	2,180	  	 	56	  	2.6	%	
Other reinsurers balances <$20 million	  	 	528	  	 	55	  	10.4	%	
Mandatory pools and government agencies	  	 	578	  	 	3	  	0.5	%	
Structured settlements	  	 	220	  	 	7	  	3.2	%	
Captives	  	 	1,377	  	 	1	  	0.1	%	
Other  (1) 	  	 	367	  	 	249	  	67.8	%	
	  	 	 	  	 	 	  	 	 	
Total	  	$	10,238	  	$	427	  	4.2	%	

At June 30, 2007, $7.4 billion of the active operations’ recoverables were from rated reinsurers, of which 95.1% were rated the equivalent of A- or better by internationally recognized rating agencies. The Company held collateral of $3.2 billion, of which $2 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)	
AGRI General Ins Co
American International Group (AIG)
Berkshire Hathaway Insurance Group
Chubb Insurance Group
Federal Crop Insurance Corp
HDI Haftpflichtverband Der Deutschen
    Industrie Vag (Hannover)
Lloyd’s Of London
Munich Re Group
Swiss Re Group
XL Capital Group	  	AIOI Insurance Group
Allianz
Allied World Assurance Group
Arch Capital
Aspen Insurance Holdings Ltd
AXA
CIGNA
Converium Group
Dow Chemical Co
Electric Insurance Company Group
Endurance Specialty Holdings Ltd
Everest Re Group
ING Groep NV
IPCRe Ltd
IRB - Brasil Resseguros S.A. Group	  	Liberty Mutual Insurance Companies
Montpelier Reinsurance Ltd
Partner Re
Platinum Underwriters
PMA Capital Corp
Renaissance Re Holdings Ltd
Royal & Sun Alliance Insurance Group
SCOR Group
Sompo Japan Group
Tawa UK Ltd
Toa Reinsurance Company
Travelers Companies Inc
White Mountains Insurance Group
WR Berkley Corp
Zurich Financial Services Group	
 
(1)	Other principally includes amounts recoverable that are in dispute, or are from companies who are in supervision, rehabilitation or liquidation. Our estimate of provision for uncollectible reinsurance associated with Other considers the credit quality of the reinsurer, and whether we have received collateral or other credit protections such as multi-beneficiary trusts and 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 14	

			
	  	ACE Limited	
	  	Reinsurance Recoverable Analysis - 3	
	  	(in millions of U.S. dollars)	
	  	(Unaudited)	
 
Consolidated Reinsurance Recoverable

 	  	June 30, 2007	 	
 	  	Recoverable	  	Provision	  	% of Gross	 	
Categories	  			  			  			
Top 10 reinsurers	  	$	7,698	  	$	84	  	1.1	%	
Other reinsurers balances >$20 million	  	 	3,360	  	 	150	  	4.5	%	
Other reinsurers balances <$20 million	  	 	656	  	 	85	  	13.0	%	
Mandatory pools and government agencies	  	 	585	  	 	3	  	0.5	%	
Structured settlements	  	 	522	  	 	16	  	3.1	%	
Captives	  	 	1,483	  	 	5	  	0.3	%	
Other  (1) 	  	 	426	  	 	306	  	71.8	%	
	  	 	 	  	 	 	  	 	 	
Total	  	$	14,730	  	$	649	  	4.4	%	

At June 30, 2007, $11.2 billion of ACE Limited recoverables were from rated reinsurers, of which 94.6% 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 (AIG)
Berkshire Hathaway Insurance Group
Chubb Insurance Group
Equitas
Everest Re Group
HDI Haftpflichtverband Der Deutschen Industrie Vag (Hannover)
Lloyd’s Of London
Munich Re Group
Swiss Re Group
XL Capital Group	  	AGRI General Ins Co
AIOI Insurance Group
Allianz
Allied World Assurance Group
Allstate Group
Arch Capital
Aspen Insurance Holdings Ltd
AVIVA
AXA
CIGNA
CNA Insurance Companies
Converium Group
Dominion Insurance Co Ltd
Dow Chemical Co
Dukes Place Holdings	  	Electric Insurance Company Group
Endurance Specialty Holdings Ltd
Enstar Group Ltd
Fairfax Financial
Federal Crop Insurance Corp
FM Global Group
Globale Rueckversicherungs AG
Hartford Insurance Group
ING Groep NV
IPCRe Ltd
IRB - Brasil Resseguros S.A. Group
Liberty Mutual Insurance Companies
Millea Holdings
Montpelier Reinsurance Ltd
Partner Re	  	Platinum Underwriters
PMA Capital Corp
Renaissance Re Holdings Ltd
Royal & Sun Alliance Insurance Group
SCOR Group
Sompo Japan Group
Tawa UK Ltd
Toa Reinsurance Company
Travelers Companies Inc
Trenwick Group
White Mountains Insurance Group
WR Berkley Corp
Zurich Financial Services Group	
 
(1)	Other principally includes amounts recoverable that are in dispute, or are from companies who are in supervision, rehabilitation or liquidation. Our estimate of provision for uncollectible reinsurance associated with Other considers the credit quality of the reinsurer, and whether we have received collateral or other credit protections such as multi-beneficiary trusts and 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 15	

			
	  	ACE Limited	
	  	Reinsurance Recoverable Analysis - 4	
	  	(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, 2006	  	$	932	 	 	$	384	 	 	$	1,316	 	
Provision at 12/31/06	  	 	53	 	 	 	202	 	 	 	255	 	
% of gross	  	 	5.7	%	 	 	52.6	%	 	 	19.4	%	
	  	 	 	 	 	 	 	 	 	 	 	 	
Net balance at December 31, 2006	  	$	879	 	 	$	182	 	 	$	1,061	 	
	  	 	 	 	 	 	 	 	 	 	 	 	
Gross balance at March 31, 2007	  	$	933	 	 	$	290	 	 	$	1,223	 	
Provision at 3/31/07	  	 	57	 	 	 	215	 	 	 	272	 	
% of gross	  	 	6.1	%	 	 	74.1	%	 	 	22.2	%	
	  	 	 	 	 	 	 	 	 	 	 	 	
Net balance at March 31, 2007	  	$	876	 	 	$	75	 	 	$	951	 	
	  	 	 	 	 	 	 	 	 	 	 	 	
Gross balance at June 30, 2007	  	$	887	 	 	$	227	 	 	$	1,114	 	
Provision at 6/30/07	  	 	52	 	 	 	167	 	 	 	219	 	
% of gross	  	 	5.9	%	 	 	73.6	%	 	 	19.7	%	
	  	 	 	 	 	 	 	 	 	 	 	 	
Net balance at June 30, 2007	  	$	835	 	 	$	60	 	 	$	895	 	
	  	 	 	 	 	 	 	 	 	 	 	 	
Gross balance at September 30, 2007	  	$	820	 	 	$	210	 	 	$	1,030	 	
Provision at 9/30/07	  	 	49	 	 	 	158	 	 	 	207	 	
% of gross	  	 	6.0	%	 	 	75.2	%	 	 	20.1	%	
	  	 	 	 	 	 	 	 	 	 	 	 	
Net balance at September 30, 2007 (3) 	  	$	771	 	 	$	52	 	 	$	823	 	

(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 principally 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 multi-beneficiary trusts and parental guarantees.	
 
(3)	The current quarter split between general collections and other is estimated based on prior quarter balances. Balances are adjusted to actual in the next quarter.	

Reinsurance Recoverable 4	  	Page 16	

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

 	  	September 30
2007	 	 	June 30
2007	 	 	March 31
2007	 	 	December 31
2006	 	
Market Value	  				 				 				 				
Fixed maturities available for sale	  	$	32,632	 	 	$	30,591	 	 	$	29,934	 	 	$	28,540	 	
Fixed maturities held to maturity	  	 	2,966	 	 	 	2,957	 	 	 	3,039	 	 	 	3,015	 	
Short-term investments	  	 	2,940	 	 	 	2,919	 	 	 	2,658	 	 	 	2,456	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total	  	$	38,538	 	 	$	36,467	 	 	$	35,631	 	 	$	34,011	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Asset Allocation by Market Value	  				 				 				 				
Treasury	  	$	1,208	 	 	$	1,587	 	 	$	1,689	 	 	$	1,322	 	
Agency	  	 	1,901	 	 	 	2,117	 	 	 	2,223	 	 	 	2,207	 	
Corporate	  	 	8,579	 	 	 	7,643	 	 	 	7,473	 	 	 	7,394	 	
Mortgage-backed securities	  	 	13,542	 	 	 	12,338	 	 	 	11,925	 	 	 	11,346	 	
Asset-backed securities	  	 	1,377	 	 	 	1,611	 	 	 	1,772	 	 	 	2,020	 	
Municipal	  	 	1,603	 	 	 	1,367	 	 	 	1,157	 	 	 	809	 	
Non-U.S.	  	 	7,388	 	 	 	6,885	 	 	 	6,734	 	 	 	6,457	 	
Short-term investments	  	 	2,940	 	 	 	2,919	 	 	 	2,658	 	 	 	2,456	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total	  	$	38,538	 	 	$	36,467	 	 	$	35,631	 	 	$	34,011	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Credit Quality by Market Value	  				 				 				 				
AAA	  	$	25,239	 	 	$	24,121	 	 	$	23,783	 	 	$	22,471	 	
AA	  	 	3,416	 	 	 	3,178	 	 	 	3,095	 	 	 	2,725	 	
A	  	 	4,059	 	 	 	3,902	 	 	 	3,582	 	 	 	3,909	 	
BBB	  	 	3,171	 	 	 	2,841	 	 	 	2,610	 	 	 	2,498	 	
BB	  	 	1,121	 	 	 	948	 	 	 	992	 	 	 	943	 	
B	  	 	1,437	 	 	 	1,376	 	 	 	1,475	 	 	 	1,365	 	
Other	  	 	95	 	 	 	101	 	 	 	94	 	 	 	100	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total	  	$	38,538	 	 	$	36,467	 	 	$	35,631	 	 	$	34,011	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Cost/Amortized Cost	  				 				 				 				
Fixed maturities available for sale	  	$	32,619	 	 	$	30,847	 	 	$	29,723	 	 	$	28,389	 	
Fixed maturities held to maturity	  	 	2,979	 	 	 	3,013	 	 	 	3,060	 	 	 	3,047	 	
Short-term investments	  	 	2,940	 	 	 	2,919	 	 	 	2,658	 	 	 	2,456	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Subtotal	  	 	38,538	 	 	 	36,779	 	 	 	35,441	 	 	 	33,892	 	
Equity securities	  	 	1,540	 	 	 	1,522	 	 	 	1,432	 	 	 	1,372	 	
Other investments	  	 	812	 	 	 	749	 	 	 	687	 	 	 	661	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total	  	$	40,890	 	 	$	39,050	 	 	$	37,560	 	 	$	35,925	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Avg. duration of fixed maturities, adjusted for int. rate swaps	  	 	3.6 years	 	 	 	3.7 years	 	 	 	3.3 years	 	 	 	3.3 years	 	
Avg. market yield of fixed maturities	  	 	5.5	%	 	 	5.7	%	 	 	5.3	%	 	 	5.4	%	
Avg. credit quality	  	 	AA	 	 	 	AA	 	 	 	AA	 	 	 	AA	 	

Investments	  	Page 17	

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

 	  	Three months ended September 30, 2007	 	 	Nine months ended September 30, 2007	 	
 	  	Net Realized
Gains
(Losses)  (1)	 	 	Net Unrealized
Gains
(Losses)	 	 	Net
Impact	 	 	Net Realized
Gains
(Losses)  (1)	 	 	Net Unrealized
Gains
(Losses)	 	 	Net
Impact	 	
Fixed maturities	  	$	(6	)	 	$	268	 	 	$	262	 	 	$	(90	)	 	$	(137	)	 	$	(227	)	
Equity securities	  	 	57	 	 	 	(48	)	 	 	9	 	 	 	142	 	 	 	(15	)	 	 	127	 	
Equity and fixed income derivatives	  	 	(9	)	 	 	—  	 	 	 	(9	)	 	 	(14	)	 	 	—  	 	 	 	(14	)	
Foreign exchange gains (losses)	  	 	2	 	 	 	—  	 	 	 	2	 	 	 	3	 	 	 	—  	 	 	 	3	 	
Other	  	 	6	 	 	 	4	 	 	 	10	 	 	 	18	 	 	 	37	 	 	 	55	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Sub-total	  	 	50	 	 	 	224	 	 	 	274	 	 	 	59	 	 	 	(115	)	 	 	(56	)	
Other FAS 133 adjustments	  	 	(50	)	 	 	—  	 	 	 	(50	)	 	 	(54	)	 	 	—  	 	 	 	(54	)	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total gains (losses)	  	 	—  	 	 	 	224	 	 	 	224	 	 	 	5	 	 	 	(115	)	 	 	(110	)	
Partially-owned insurance companies (2) 	  	 	(38	)	 	 	—  	 	 	 	(38	)	 	 	(38	)	 	 	—  	 	 	 	(38	)	
Income tax expense (benefit)	  	 	(2	)	 	 	10	 	 	 	8	 	 	 	(20	)	 	 	(10	)	 	 	(30	)	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net gains (losses)	  	$	(36	)	 	$	214	 	 	$	178	 	 	$	(13	)	 	$	(105	)	 	$	(118	)	

(1)	The quarter includes impairments of $13M for fixed maturities and $5M for equitites. Year to date includes impairments of $63M for fixed maturities, $7M for equities and $2M for other investments.	
 
(2)	Realized gains (losses) on partially-owned insurance companies that meet the requirements for equity accounting. The net income or loss is included in other (income) expense.	

 	  	Three months ended September 30, 2006	 	 	Nine months ended September 30, 2006	 	
 	  	Net Realized
Gains
(Losses)  (3)	 	 	Net Unrealized
Gains
(Losses)	  	Net
Impact	 	 	Net Realized
Gains
(Losses) (3)	 	 	Net Unrealized
Gains
(Losses)	  	Net
Impact	 	
Fixed maturities	  	$	(116	)	 	$	559	  	$	443	 	 	$	(241	)	 	$	130	  	$	(111	)	
Equity securities	  	 	24	 	 	 	55	  	 	79	 	 	 	124	 	 	 	29	  	 	153	 	
Equity and fixed income derivatives	  	 	(25	)	 	 	—  	  	 	(25	)	 	 	(5	)	 	 	—  	  	 	(5	)	
Foreign exchange gains (losses)	  	 	(4	)	 	 	—  	  	 	(4	)	 	 	(11	)	 	 	—  	  	 	(11	)	
Other	  	 	—  	 	 	 	9	  	 	9	 	 	 	2	 	 	 	68	  	 	70	 	
	  	 	 	 	 	 	 	  	 	 	 	 	 	 	 	 	 	 	  	 	 	 	
Total inv. portfolio gains (losses)	  	 	(121	)	 	 	623	  	 	502	 	 	 	(131	)	 	 	227	  	 	96	 	
Sale of run-off reinsurance subsidiaries	  	 	9	 	 	 	—  	  	 	9	 	 	 	9	 	 	 	—  	  	 	9	 	
Other FAS 133 adjustments	  	 	(1	)	 	 	—  	  	 	(1	)	 	 	9	 	 	 	—  	  	 	9	 	
	  	 	 	 	 	 	 	  	 	 	 	 	 	 	 	 	 	 	  	 	 	 	
Total gains (losses)	  	 	(113	)	 	 	623	  	 	510	 	 	 	(113	)	 	 	227	  	 	114	 	
Income tax expense (benefit)	  	 	(39	)	 	 	111	  	 	72	 	 	 	(41	)	 	 	44	  	 	3	 	
	  	 	 	 	 	 	 	  	 	 	 	 	 	 	 	 	 	 	  	 	 	 	
Net gains (losses)	  	$	(74	)	 	$	512	  	$	438	 	 	$	(72	)	 	$	183	  	$	111	 	

(3)	The quarter includes impairments of $106M for fixed maturities, $3M for equities. Year to date includes impairments of $186M for fixed maturities, $9M for equities and $6M for other investments.	

Investment Gains (Losses)	  	Page 18	

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

 	  	September 30
2007	 	 	June 30
2007	 	 	March 31
2007	 	 	December 31
2006	 	 	December 31
2005	 	
Total short-term debt	  	$	87	 	 	$	85	 	 	$	581	 	 	$	578	 	 	$	300	 	
Total long-term debt	  	 	2,068	 	 	 	2,063	 	 	 	2,061	 	 	 	1,560	 	 	 	1,811	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total debt	  	 	2,155	 	 	 	2,148	 	 	 	2,642	 	 	 	2,138	 	 	 	2,111	 	

Total trust preferred securities	  	 	309	 	 	 	309	 	 	 	309	 	 	 	309	 	 	 	309	 	

Perpetual preferred shares	  	 	557	 	 	 	557	 	 	 	557	 	 	 	557	 	 	 	557	 	
Ordinary shareholders’ equity	  	 	15,478	 	 	 	14,627	 	 	 	14,402	 	 	 	13,721	 	 	 	11,255	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total shareholders’ equity	  	$	16,035	 	 	$	15,184	 	 	$	14,959	 	 	$	14,278	 	 	$	11,812	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total capitalization	  	$	18,499	 	 	$	17,641	 	 	$	17,910	 	 	$	16,725	 	 	$	14,232	 	
Tangible shareholders’ equity (1) 	  	$	13,304	 	 	$	12,453	 	 	$	12,228	 	 	$	11,547	 	 	$	9,109	 	
						
Leverage ratios	  				 				 				 				 				
Debt/ total capitalization	  	 	11.6	%	 	 	12.2	%	 	 	14.8	%	 	 	12.8	%	 	 	14.8	%	
Debt plus trust preferred secutities/ total capitalization	  	 	13.3	%	 	 	13.9	%	 	 	16.5	%	 	 	14.6	%	 	 	17.0	%	
Debt/ tangible equity	  	 	16.2	%	 	 	17.2	%	 	 	21.6	%	 	 	18.5	%	 	 	23.2	%	
Debt plus trust preferred securities/ tangible equity	  	 	18.5	%	 	 	19.7	%	 	 	24.1	%	 	 	21.2	%	 	 	26.6	%	
Debt plus total preferred stock/ total capitalization	  	 	16.3	%	 	 	17.1	%	 	 	19.6	%	 	 	18.0	%	 	 	20.9	%	
 
(1)	Tangible equity is equal to shareholders’ equity less goodwill.	

Capital Structure	  	Page 19	

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

 	  	Three months ended September 30	 	 	Nine months ended September 30	 	
 	  	2007	 	 	2006	 	 	2007	 	 	2006	 	
Numerator	  				 				 				 				
Income excluding net realized gains (losses) and cumulative effect  (1) 	  	$	692	 	 	$	652	 	 	$	2,019	 	 	$	1,708	 	
Perpetual preferred dividend	  	 	(11	)	 	 	(11	)	 	 	(33	)	 	 	(33	)	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income to ordinary shares, excl. net realized gains (losses) and cumulative effect	  	 	681	 	 	 	641	 	 	 	1,986	 	 	 	1,675	 	
Net realized gains (losses), net of income tax	  	 	(36	)	 	 	(74	)	 	 	(13	)	 	 	(72	)	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income available to the holders of ordinary shares excluding cumulative effect	  	 	645	 	 	 	567	 	 	 	1,973	 	 	 	1,603	 	
Cumulative effect of a change in accounting principle, net of tax	  	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	4	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income available to the holders of ordinary shares	  	$	645	 	 	$	567	 	 	$	1,973	 	 	$	1,607	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Rollforward of Ordinary Shares	  				 				 				 				
Ordinary Shares - beginning of period	  	 	329,009,343	 	 	 	325,371,481	 	 	 	326,455,468	 	 	 	323,322,586	 	
Issued under employee stock purchase plan	  	 	101,234	 	 	 	101,359	 	 	 	205,396	 	 	 	202,891	 	
Shares (cancelled) granted	  	 	11,614	 	 	 	(19,016	)	 	 	1,259,080	 	 	 	989,164	 	
Issued for option exercises	  	 	338,176	 	 	 	502,718	 	 	 	1,540,423	 	 	 	1,441,901	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Ordinary Shares - end of period	  	 	329,460,367	 	 	 	325,956,542	 	 	 	329,460,367	 	 	 	325,956,542	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Denominator	  				 				 				 				
Weighted average shares outstanding	  	 	325,201,688	 	 	 	321,857,427	 	 	 	324,670,960	 	 	 	321,502,413	 	
Effect of other dilutive securities	  	 	5,419,353	 	 	 	4,848,763	 	 	 	5,413,751	 	 	 	5,005,317	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Adj. wtd. avg. shares outstanding and assumed conversions	  	 	330,621,041	 	 	 	326,706,190	 	 	 	330,084,711	 	 	 	326,507,730	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Basic earnings per share	  				 				 				 				
Income excluding net realized gains (losses) and cumulative effect  (1) 	  	$	2.09	 	 	$	1.99	 	 	$	6.12	 	 	$	5.21	 	
Net realized gains (losses), net of income tax	  	 	(0.11	)	 	 	(0.23	)	 	 	(0.04	)	 	 	(0.23	)	
Cumulative effect of a change in accounting principle, net of tax	  	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	0.01	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income	  	$	1.98	 	 	$	1.76	 	 	$	6.08	 	 	$	4.99	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Diluted earnings per share	  				 				 				 				
Income excluding net realized gains (losses) and cumulative effect  (1) 	  	$	2.06	 	 	$	1.96	 	 	$	6.02	 	 	$	5.13	 	
Net realized gains (losses), net of income tax	  	 	(0.11	)	 	 	(0.23	)	 	 	(0.04	)	 	 	(0.22	)	
Cumulative effect of a change in accounting principle, net of tax	  	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	0.01	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income	  	$	1.95	 	 	$	1.73	 	 	$	5.98	 	 	$	4.92	 	

(1)	See page 21 Non-GAAP Financial Measures.	

Earnings per share	  	Page 20	

			
	  	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 is provided on page 22.
 
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 excluding net realized gains (losses), the tax expense (benefit) on net realized gains (losses), and cumulative effect of a change in accounting principle, net of tax. 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) and net realized gains (losses) included in other (income) expense related to partially owned insurance companies because the amount of these gains (losses) is heavily influenced by, and fluctuates in part according to, the availability of market opportunities. We exclude the benefit of the cumulative effect of a change in accounting principle, net of tax, because this benefit resulted in a one time adjustment to income. 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) and cumulative effect should not be viewed as a substitute for net income determined in accordance with generally accepted accounting principles (GAAP).

 	  	3Q-07	 	 	2Q-07	 	 	1Q-07	 	 	4Q-06	 	 	3Q-06	 	 	YTD
2007	 	 	YTD
2006	 	 	Full Year
2006	 	
Net income, as reported	  	$	656	 	 	$	649	 	 	$	701	 	 	$	665	 	 	$	578	 	 	$	2,006	 	 	$	1,640	 	 	$	2,305	 	
Net realized gains (losses)	  	 	—  	 	 	 	(11	)	 	 	16	 	 	 	15	 	 	 	(113	)	 	 	5	 	 	 	(113	)	 	 	(98	)	
Net realized gains (losses) in other (income) expense (1) 	  	 	(38	)	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	(38	)	 	 	—  	 	 	 	—  	 	
Income tax expense (benefit) on net realized gains (losses)	  	 	(2	)	 	 	4	 	 	 	(22	)	 	 	(7	)	 	 	(39	)	 	 	(20	)	 	 	(41	)	 	 	(48	)	
Cumulative effect of a change in accounting principle, net of tax	  	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	4	 	 	 	4	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income excluding net realized gains (losses) and cumulative effect	  	$	692	 	 	$	664	 	 	$	663	 	 	$	643	 	 	$	652	 	 	$	2,019	 	 	$	1,708	 	 	$	2,351	 	

(1)	Realized gains (losses) on partially-owned insurance companies that meet the requirements for equity accounting. The net income or loss is included in other (income) expense.	

Reconciliation Non-GAAP	  	Page 21	

			
	  	ACE Limited	
	  	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

 	  	September 30
2007	 	 	June 30
2007	 	 	March 31
2007	 	 	December 31
2006	 	
Shareholders’ equity	  	$	16,035	 	 	$	15,184	 	 	$	14,959	 	 	$	14,278	 	
Proceeds from issuance of perpetual preferred shares	  	 	(557	)	 	 	(557	)	 	 	(557	)	 	 	(557	)	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Numerator for book value per share calculation	  	 	15,478	 	 	 	14,627	 	 	 	14,402	 	 	 	13,721	 	
Less: goodwill	  	 	2,731	 	 	 	2,731	 	 	 	2,731	 	 	 	2,731	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Numerator for tangible book value per share	  	$	12,747	 	 	$	11,896	 	 	$	11,671	 	 	$	10,990	 	

Denominator	  	 	329,460,367	 	 	 	329,009,343	 	 	 	328,309,225	 	 	 	326,455,468	 	

Book value per ordinary share	  	$	46.98	 	 	$	44.46	 	 	$	43.87	 	 	$	42.03	 	
Tangible book value per ordinary share	  	$	38.69	 	 	$	36.16	 	 	$	35.55	 	 	$	33.66	 	

Reconciliation Book Value	  	Page 22	

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

 	  	3Q-07	 	 	2Q-07	 	 	1Q-07	 	 	4Q-06	 	 	3Q-06	 	 	YTD
2007	 	 	YTD
2006	 	 	Full Year
2006	 	
Net income	  	$	656	 	 	$	649	 	 	$	701	 	 	$	665	 	 	$	578	 	 	$	2,006	 	 	$	1,640	 	 	$	2,305	 	
Net unrealized appreciation (depreciation) on investments	  				 				 				 				 				 				 				 				
Unrealized appreciation (depreciation) on investments	  	 	218	 	 	 	(427	)	 	 	73	 	 	 	132	 	 	 	541	 	 	 	(136	)	 	 	157	 	 	 	289	 	
Reclassification adjustment for net realized gains (losses) included in net income	  	 	6	 	 	 	12	 	 	 	3	 	 	 	(6	)	 	 	82	 	 	 	21	 	 	 	70	 	 	 	64	 	
Change in cumulative translation adjustments	  	 	58	 	 	 	19	 	 	 	16	 	 	 	46	 	 	 	15	 	 	 	93	 	 	 	89	 	 	 	135	 	
Change in minimum pension liability	  	 	(1	)	 	 	(2	)	 	 	—  	 	 	 	29	 	 	 	(5	)	 	 	(3	)	 	 	(9	)	 	 	20	 	
Income tax (expense) benefit related to other comprehensive income items	  	 	(28	)	 	 	23	 	 	 	(18	)	 	 	(42	)	 	 	(117	)	 	 	(23	)	 	 	(71	)	 	 	(113	)	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Other comprehensive income (loss)	  	 	253	 	 	 	(375	)	 	 	74	 	 	 	159	 	 	 	516	 	 	 	(48	)	 	 	236	 	 	 	395	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Comprehensive income	  	$	909	 	 	$	274	 	 	$	775	 	 	$	824	 	 	$	1,094	 	 	$	1,958	 	 	$	1,876	 	 	$	2,700	 	

			
Comprehensive Income	  	Page 23	

			
	  	ACE Limited	
	  	Glossary	
 
Annualized return on ordinary shareholders’ equity (ROE): Income excluding net realized gains (losses) and cumulative effect less perpetual preferred securities divided by average ordinary shareholders’ equity for the period. To annualize a quarterly rate multiply by four.
 
Book value per ordinary share: Ordinary shareholders’ equity divided by the shares outstanding.
 
Combined ratio: The sum of the loss and loss expense ratio, acquisition cost ratio and the administrative expense ratio excluding life business. Calculated on a GAAP basis.
 
Cumulative effect: The benefit resulting from the accrual of a forfeiture rate on the restricted stock under Financial Accounting Standard 123R “Share-Based Payment”.
 
Effective tax rate: Income tax expense divided by the sum of income tax expense and income excluding net realized gains (losses) and cumulative effect.
 
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.
 
Tangible book value per ordinary share: Ordinary shareholders’ equity less goodwill divided by the shares outstanding.
 
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 24