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) – January 28, 2014

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

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

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

 

Item 2.02. Results of Operations and Financial Condition
On January 28, 2014, ACE Limited issued a Press Release reporting its fourth quarter 2013 results and the availability of its fourth quarter 2013 Financial Supplement. The Press Release and the Financial Supplement are attached hereto as Exhibit 99.1 and Exhibit 99.2, respectively, and are hereby incorporated herein by reference.
Item 9.01. Financial Statements, Pro Forma Financial Information and Exhibits
(d) Exhibits

Exhibit
Number	  	Description	
		
99.1	  	Press Release, Dated January 28, 2014, Reporting Fourth Quarter 2013 Results	
		
99.2	  	Fourth Quarter 2013 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: January 28, 2014

EXHIBIT INDEX

Number	    	Description	  	Method of Filing	
			
99.1	    	Press Release, Dated January 28, 2014, Reporting Fourth Quarter 2013 Results	  	Furnished herewith	
			
99.2	    	Fourth Quarter 2013 Financial Supplement	  	Furnished herewith	

Exhibit 99.1

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

	  		  	Investor Contact:  	  	Helen M. Wilson	
	  		  		  	(441) 299-9283	
	  		  		  	helen.wilson@acegroup.com	
				
	  		  	Media Contact:	  	Arnella J. Forde	
	  		  		  	(212) 703-7066	
	  		  		  	arnella.forde@acegroup.com      	
 
ACE REPORTS FOURTH QUARTER OPERATING INCOME OF $824 MILLION OR
$2.39 PER SHARE, UP 67%, P&C NET PREMIUMS WRITTEN UP 20% IN CONSTANT
DOLLARS, AND OPERATING RETURN ON EQUITY OF 12.1%;
RECORD FULL-YEAR OPERATING INCOME OF $3.2 BILLION, UP 23%;
COMBINED RATIO OF 89.3% AND 88%, RESPECTIVELY, FOR QUARTER AND YEAR
 
•	 	Record full-year operating and net income of $9.35 per share and $10.92 per share, respectively	
•	 	P&C current accident year combined ratio for the year excluding catastrophe losses was 90%, resulting in P&C underwriting income up 111%	
•	 	Book value up 4.7% for the year, or 11.1% excluding unrealized losses, with operating ROE of 12.2%	
•	 	Full-year net investment income of over $2.1 billion, down 1.7%	
ZURICH — January 28, 2014 — ACE Limited (NYSE: ACE) today reported net income for the quarter ended December 31, 2013, of $2.90 per share, compared with $2.22 per share for the same quarter last year. (1) Operating income was $2.39 per share, compared with $1.43 per share for the same quarter last year. Book value and tangible book value per share increased 2.2% and 3.0%, respectively, from September 30, 2013. Book value and tangible book value per share now stand at $84.83 and $68.93, respectively. Operating return on equity for the quarter was 12.1%. The property and casualty (P&C) combined ratio for the quarter was 89.3%.
Fourth Quarter Summary
(in millions, except per share amounts)
(Unaudited)

 	  	 	 	  	 	 	  	 	 	 	(Per Share – Diluted)	 	
 	  	  2013  	 	  	  2012  	 	  	  Change  	 	 	  2013  	 	  	  2012  	 	  	  Change  	 	
	  	 	 	 	 	 	 	 	
Operating income, net of tax	  	$	  824	  	  	$	492	  	  	 	67.5	% 	 	$	2.39	  	  	$	1.43	  	  	 	67.1	% 	
Net realized gains (losses), net of tax	  	 	174	  	  	 	273	  	  	 	(36.3	)% 	 	 	0.51	  	  	 	0.79	  	  	 	(35.4	)% 	
	  	 	 	 	 	 	 	 	
Net income	  	$	  998	  	  	$	  765	  	  	 	30.5	% 	 	$	2.90	  	  	$	2.22	  	  	 	30.6	% 	

For the year ended December 31, 2013, net income was $10.92 per share, compared with $7.89 per share for 2012. Operating income was $9.35 per share, compared with $7.65 per share for 2012. Book value increased $1.3 billion, up 4.7% from December 31, 2012, and tangible book value increased $865 million, up 3.8%, and up 6.5% excluding acquisitions. The P&C combined ratio for the year ended December 31, 2013, was 88.0%.
Full Year Summary
(in millions, except per share amounts)
(Unaudited)

 	  	 	 	  	 	 	  	 	 	 	(Per Share – Diluted)	 	
 	  	  2013  	 	  	  2012  	 	  	  Change  	 	 	  2013  	 	  	  2012  	 	  	  Change  	 	
	  	 	 	 	 	 	 	 	
Operating income, net of tax	  	$	3,217	  	  	$	2,624	  	  	 	22.6	% 	 	$	9.35	  	  	$	7.65	  	  	 	22.2	% 	
Net realized gains (losses), net of tax	  	 	541	  	  	 	82	  	  	 	NM	  	 	 	1.57	  	  	 	0.24	  	  	 	NM	  	
	  	 	 	 	 	 	 	 	
Net income	  	$	3,758	  	  	$	2,706	  	  	 	38.9	% 	 	$	10.92	  	  	$	7.89	  	  	 	38.4	% 	
	  	 	 	 	 	 	 	 	
Evan G. Greenberg, Chairman and Chief Executive Officer of ACE Limited, commented: “ACE had an excellent fourth quarter and a record year. Both our quarterly and annual results were driven by very strong premium revenue growth globally and an exceptional underwriting performance. Put simply, we are growing while achieving good margins – it’s about growth in areas where prices are attractive and securing improved terms including rate in areas where they’re not.
“Record full-year after-tax operating income was $3.2 billion or $9.35 per share, up 23%. At our core we are an underwriting company, and our P&C combined ratio for the year of 88% produced $1.8 billion of underwriting income, up over 110%. On a current accident year basis excluding catastrophe losses, which is an important way to assess the health of our underlying business, the P&C combined ratio was 90% for the year, almost three points better than 2012. Of course, like the rest of the industry, we benefited from light catastrophe losses during the year. In addition, we run our balance sheet prudently starting with our loss reserves, and as a consequence we also benefited from positive prior year reserve development.
“Complementing the excellent underwriting results and a product of our strong cash flow was net investment income of $2.1 billion, which was down less than 2% for the year – a good result given the low interest rate environment. Our record earnings produced a strong operating ROE of over 12% while per share book value grew 5% for the year, or 11% if you exclude the unrealized losses from our investment portfolio as interest rates rose.
“Excluding crop insurance, P&C net premiums written grew 11% last year on a constant-dollar basis. Premium growth in our commercial and specialty P&C businesses, in particular, continued to benefit from our underwriting portfolio management efforts as well as a favorable U.S. rate environment that has continued into the new year. We are off to a great start in January, and remembering we are in a risk business, I expect we will have a good year in 2014 as we continue to take advantage of the many growth opportunities we see around the globe including the U.S.”
 
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Similar to the third quarter presentation and consistent with how management views the business, the results of the company’s agriculture business, given its size and nature, are identified separately from the balance of the company’s P&C business, which is called “global P&C.” Global P&C includes the company’s Insurance – North American P&C, Insurance – Overseas General and Global Reinsurance segments. Operating highlights for the quarter and full year ended December 31, 2013, were as follows: (1)

(in millions of U.S. dollars except for percentages)	  	4Q
2013	 	 	4Q
2012	 	 	%
Change	 	 	Full Year
2013	 	 	Full Year
2012	 	 	%
Change	 	
P&C	  				 				 				 				 				 				
Net premiums written	  	$	3,712	  	 	$	3,140	  	 	 	18.2	% 	 	$	15,053	  	 	$	14,096	  	 	 	6.8	% 	
Net premiums written constant-dollar (2)	  				 	$	3,098	  	 	 	19.8	% 	 				 	$	13,958	  	 	 	7.8	% 	
Underwriting income (loss)	  	$	416	  	 	$	(184	) 	 	 	NM	  	 	$	1,772	  	 	$	839	  	 	 	111.2	% 	
Combined ratio	  	 	89.3	% 	 	 	105.5	% 	 				 	 	88.0	% 	 	 	93.9	% 	 				
Current accident year combined ratio excluding catastrophe losses	  	 	91.5	% 	 	 	91.4	% 	 				 	 	90.0	% 	 	 	92.8	% 	 				
Global P&C (excludes Agriculture)	  				 				 				 				 				 				
Net premiums written	  	$	3,456	  	 	$	3,056	  	 	 	13.1	% 	 	$	13,426	  	 	$	12,237	  	 	 	9.7	% 	
Net premiums written constant-dollar	  				 	$	3,014	  	 	 	14.7	% 	 				 	$	12,099	  	 	 	11.0	% 	
Underwriting income (loss)	  	$	438	  	 	$	(185	) 	 	 	NM	  	 	$	1,683	  	 	$	899	  	 	 	87.3	% 	
Combined ratio	  	 	87.4	% 	 	 	106.0	% 	 				 	 	87.1	% 	 	 	92.4	% 	 				
Current accident year combined ratio excluding catastrophe losses	  	 	89.9	% 	 	 	90.8	% 	 				 	 	89.4	% 	 	 	91.1	% 	 				
Agriculture	  				 				 				 				 				 				
Net premiums written	  	$	256	  	 	$	84	  	 	 	203.6	% 	 	$	1,627	  	 	$	1,859	  	 	 	(12.5	)% 	
Underwriting income (loss)	  	$	(22	) 	 	$	1	  	 	 	NM	  	 	$	89	  	 	$	(60	) 	 	 	NM	  	
Combined ratio	  	 	105.2	% 	 	 	99.5	% 	 				 	 	94.7	% 	 	 	103.2	% 	 				
 
(2)  	Excluding acquisitions, P&C net premiums written increased 15.5% for the quarter and 5.2% for the year on a constant-dollar basis.	
 
 	•	 	The P&C expense ratio for the quarter was 28.0% compared with 30.0% last year. The global P&C expense ratio (excludes Agriculture) was 31.7% compared with 32.6% last year. For the year, the P&C expense ratio was 28.4% compared with 28.2% last year. The global P&C expense ratio (excludes Agriculture) for the year was 31.5% compared with 32.4% last year.	
 	•	 	Total pre-tax and after-tax catastrophe losses including reinstatement premiums for the quarter were $36 million (1.0 percentage point of the combined ratio) and $31 million, respectively. Total pre-tax and after-tax catastrophe losses including reinstatement premiums last year were $511 million and $400 million, respectively.	
 	•	 	Favorable prior period development pre-tax for the quarter, net of a $91 million charge for asbestos and environmental and other run-off businesses, was $122 million, representing 3.2 percentage points of the combined ratio, compared with $37 million last year.	
 	•	 	Operating cash flow was $1.3 billion for the quarter and $4.0 billion for the year.	
 	•	 	Net loss reserves increased $508 million for the year after adjusting for foreign exchange.	
 
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 	•	 	Net investment income for the quarter was $557 million compared with $567 million last year. The current quarterly investment income run rate is estimated at $540 million. Net investment income for the year was $2.1 billion, down 1.7% compared to last year.	
 	•	 	Net realized and unrealized losses pre-tax totaled approximately $21 million for the quarter, which included net realized gains of $179 million and net unrealized losses of $200 million. Net realized gains from derivative accounting related to variable annuity reinsurance were $149 million and included a $92 million realized gain related to an out-of-period adjustment for an error in a market valuation model.	
 	•	 	Operating return on equity was 12.1% for the quarter and 12.2% for the year. Return on equity computed using net income was 14.0% for the quarter and 13.3% for the year.	
 	•	 	Book value per share increased 2.2% to $84.83 compared with $82.98 at September 30, 2013, and increased 4.9% from $80.90 at December 31, 2012.	
 	•	 	Tangible book value per share increased 3.0% to $68.93 from $66.91 at September 30, 2013, and increased 4.0% from $66.28 at December 31, 2012. Tangible book value was negatively affected by goodwill and intangibles relating to the acquisitions of Fianzas Monterrey and ABA Seguros. Excluding the impact of the acquisitions, tangible book value per share increased 6.7% for the year.	
Details of financial results by business segment are available in the ACE Limited Financial Supplement. Key segment items for the quarter and full year ended December 31, 2013, include:
 
 	•	 	Insurance – North American P&C: Net premiums written increased 11.8% for the quarter. The combined ratio was 86.2% compared with 114.3%. The current accident year combined ratio excluding catastrophe losses was 87.2% compared with 88.4%. For the year, the combined ratio was 86.9% compared with 94.8% last year. The current accident year combined ratio excluding catastrophe losses was 87.6% compared with 89.9% last year.	
 	•	 	Insurance – North American Agriculture: Net premiums written increased 203.6% for the quarter primarily due to decreased premium cessions to the U.S. government as a result of the government’s crop insurance profit and loss calculation formula when compared to last year. The combined ratio was 105.2% compared with 99.5%. The current quarter combined ratio was higher than expected primarily due to lower corn yields in a few states. For the year, the combined ratio was 94.7% compared with 103.2%.	
 	•	 	Insurance – Overseas General: Net premiums written increased 15.1% for the quarter, or 18.2% on a constant-dollar basis. The combined ratio was 88.1% compared with 95.4%. The current accident year combined ratio excluding catastrophe losses was 91.6% compared with 92.5%. For the year, the combined ratio was 87.2% compared with 89.7% last year. The current accident year combined ratio excluding catastrophe losses was 90.5% compared with 92.2%.	
 	•	 	Global Reinsurance: Net premiums written increased 5.5% for the quarter. The combined ratio was 68.4% compared with 101.7%. The current accident year combined ratio excluding catastrophe losses was 73.6% compared with 69.9%. For the year, the combined ratio was 65.9% compared with 77.5% last year. The current accident year combined ratio excluding catastrophe losses was 70.9% compared with 72.8%.	
 	•	 	Life segment: Operating income was $86 million compared with $74 million for the fourth quarter of last year. Net premiums written and deposits collected, excluding life reinsurance, increased 3.0% on a constant-dollar basis. For the year, net premiums written and deposits collected, excluding life reinsurance, increased 10.8% on a constant-dollar basis.	
 
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Please refer to the ACE Limited Financial Supplement , dated December 31, 2013, which is posted on the company’s website in the Investor Information section, and access Financial Reports for more detailed information on individual segment performance, together with additional disclosure on reinsurance recoverable, loss reserves, investment portfolio and capital structure.
ACE Limited will hold its fourth quarter earnings conference call on Wednesday, January 29, 2014, beginning at 8:30 a.m. Eastern. The earnings conference call will be available via live webcast at www.acegroup.com or by dialing 888-300-2318 (within the United States) or 719-325-2325 (international), passcode 6526575. Please refer to the ACE Group website in the Investor Information section under Calendar of Events for details. A replay of the call will be available until Wednesday, February 12, 2014, and the archived webcast will be available for approximately one month. To listen to the replay, please dial 888-203-1112 (in the United States) or 719-457-0820 (international), passcode 6526575.
ACE Group is one of the world’s largest multiline property and casualty insurers. With operations in 54 countries, ACE provides commercial and personal property and casualty insurance, personal accident and supplemental health insurance, reinsurance and life insurance to a diverse group of clients. ACE Limited, the parent company of ACE Group, is listed on the New York Stock Exchange (NYSE: ACE) and is a component of the S&P 500 index. Additional information can be found at: www.acegroup.com .
 
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(1)	All comparisons are with the same period last year unless specifically stated.	
Regulation G — Non-GAAP Financial Measures
In presenting our results, we included and discussed certain non-GAAP measures. The below non-GAAP measures, which may be defined differently by other companies, are important for an understanding of our overall results of operations and financial condition. However, they should not be viewed as a substitute for measures determined in accordance with generally accepted accounting principles (GAAP).
Operating income, P&C underwriting income, operating ROE, P&C combined ratio, and P&C combined ratio excluding catastrophe losses and prior period development (PPD) includes realized gains and losses associated with fair value changes on our crop derivatives. These derivatives were purchased to provide economic benefit, in a manner similar to reinsurance protection, in the event that a significant decline in commodity pricing will impact underwriting results. As such, we view changes in the fair value of these derivatives as part of the results of our operations and therefore realized gains and losses from these derivatives are reclassified to losses and loss expenses. Pre-tax losses from fair value changes in these derivatives were $1 million for the year ended December 31, 2013.
Global P&C performance metrics comprise consolidated operating results (including corporate) and exclude the operating results of the company’s Life and Insurance – North American Agriculture segments. We believe that these measures are useful and meaningful to investors as they are used by management to assess the company’s global P&C operations which are the most economically similar. We exclude the Insurance – North American Agriculture and Life segments because the results of these businesses do not always correlate with the results of our global P&C operations.
Operating income or income excluding net realized gains (losses), net of tax is a common performance measurement for insurance companies. We believe this presentation enhances the understanding of our results of operations by highlighting the underlying profitability of our insurance business. We exclude net realized gains (losses) and net realized gains (losses) included in other income (expense) related to partially-owned entities because the amount of these gains (losses) is heavily influenced by, and fluctuates in part according to, the availability of market opportunities.
Underwriting income is calculated by subtracting losses and loss expenses, policy 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). Current accident year underwriting income is underwriting income adjusted to exclude PPD. We believe it is useful to exclude PPD as these unexpected loss developments on historical reserves are not indicative of our current underwriting performance. Life underwriting income includes net investment income and gains (losses) from fair value changes in separate account assets that do not qualify for separate account reporting under GAAP. P&C underwriting income and consolidated underwriting income are also non-GAAP financial measures. We believe the use of these measures enhances the understanding of our results of operations by highlighting the underlying profitability of our insurance business.
Operating return on equity (ROE) or ROE calculated using income excluding net realized gains (losses) is an annualized financial measure. The ROE numerator includes income adjusted to exclude net realized gains (losses), net of tax. The ROE denominator includes the average shareholders’ equity for the period adjusted to exclude unrealized gains (losses) on investments, net of tax. To annualize a quarterly rate, multiply by four. Annualized ROE calculated using income excluding realized gains (losses) is a useful measure as it enhances the understanding of the return on shareholders’ equity by highlighting the underlying profitability relative to shareholders’ equity excluding the effect of unrealized gains and losses on our investments.
P&C combined ratio excluding catastrophe losses and PPD or current accident year P&C combined ratio excluding catastrophe losses exclude impacts of catastrophe losses and PPD. We believe this measure provides a better evaluation of our core underwriting performance and enhances the understanding of the trends in our property & casualty business that may be obscured by these items.
Net premiums written on a constant-dollar basis and P&C net premiums written on a constant-dollar basis are financial measures which exclude the impact of foreign exchange. We believe it is useful to evaluate the trends in net premiums written, exclusive of the effect of fluctuations in exchange rates between the U.S. dollar and the currencies in which our international business is transacted, as these exchange rates could fluctuate significantly between periods and distort the analysis of trends. The impact is determined by assuming constant foreign exchange rates between periods by translating prior period results using the same local currency exchange rates as the comparable current period. P&C net premiums written excluding acquisitions on a constant-dollar basis exclude the net premiums written of Fianzas Monterrey and ABA Seguros acquired in 2013 in order to adjust for the distortive effect of acquisitions.
 
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Life net premiums written and deposits collected, excluding life reinsurance , is adjusted to include deposits collected on universal life and investment contracts (life deposits) and exclude results from our life reinsurance business. Life deposits are properly not reflected as revenues in our consolidated statements of operations in accordance with GAAP. We include life deposits in presenting growth in our Life business because new life deposits are an important component of production and key to our efforts to grow our business. We exclude results associated with life reinsurance as there is no new life reinsurance business currently being written.
Tangible book value per common share is shareholders’ equity less goodwill and other intangible assets divided by the shares outstanding. We believe that goodwill and other intangible assets are not indicative of our underlying insurance results or trends and make book value comparisons to less acquisitive peer companies less meaningful.
Tangible book value excluding acquisitions is shareholders’ equity less goodwill and other intangible assets. However, the goodwill and other intangible assets related to the 2013 acquisitions of Fianzas Monterrey and ABA Seguros are added back in order to adjust for the distortive effect of acquisitions. Tangible book value per common share excluding acquisitions is tangible book value excluding acquisitions divided by the shares outstanding.
See reconciliation of Non-GAAP Financial Measures on pages 21-22 in the Financial Supplement. These measures should not be viewed as a substitute for net income, return on equity, or effective tax rate determined in accordance with GAAP.
NM — not meaningful comparison
Cautionary Statement Regarding Forward-Looking Statements:
Forward-looking statements made in this press release, such as those related to economic outlook and insurance market conditions, and company performance including 2014 performance and growth opportunities, reflect our current views with respect to future events and financial performance and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements involve risks and uncertainties that could cause actual results to differ materially, including without limitation, the following: competition, pricing and policy term trends, the levels of new and renewal business achieved, the frequency of unpredictable catastrophic events, actual loss experience, uncertainties in the reserving or settlement process, integration activities and performance of acquired companies, new theories of liability, judicial, legislative, regulatory and other governmental developments, litigation tactics and developments, investigation developments and actual settlement terms, the amount and timing of reinsurance recoverable, credit developments among reinsurers, rating agency action, possible terrorism or the outbreak and effects of war, economic, political, regulatory, insurance and reinsurance business conditions, potential strategic opportunities including acquisitions and our ability to achieve and integrate them, as well as management’s response to these factors, and other factors identified in our filings with the Securities and Exchange Commission. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the dates on which they are made. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
(tables to follow)
 
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ACE Limited
Summary Consolidated Balance Sheets
(in millions of U.S. dollars, except per share data)
(Unaudited)

 	  	 	 	 	  	 	 	 	
 	  	December 31	 	  	December 31	 	
 	  	2013	 	  	2012	 	
Assets	  	
Investments	  	$	60,928	  	  	$	60,264	  	
Cash	  	 	579	  	  	 	615	  	
Insurance and reinsurance balances receivable	  	 	5,026	  	  	 	4,147	  	
Reinsurance recoverable on losses and loss expenses	  	 	11,227	  	  	 	12,078	  	
Other assets	  	 	16,750	  	  	 	15,441	  	
	  	 	 	 	  	 	 	 	
Total assets	  	$	94,510	  	  	$	92,545	  	
	  	 	 	 	  	 	 	 	
Liabilities	  				  				
Unpaid losses and loss expenses	  	$	37,443	  	  	$	37,946	  	
Unearned premiums	  	 	7,539	  	  	 	6,864	  	
Other liabilities	  	 	20,703	  	  	 	20,204	  	
	  	 	 	 	  	 	 	 	
Total liabilities	  	 	65,685	  	  	 	65,014	  	
	  	 	 	 	  	 	 	 	
Shareholders’ equity	  				  				
Total shareholders’ equity	  	 	28,825	  	  	 	27,531	  	
	  	 	 	 	  	 	 	 	
Total liabilities and shareholders’ equity	  	$	94,510	  	  	$	92,545	  	
	  	 	 	 	  	 	 	 	
Book value per common share	  	$	84.83	  	  	$	80.90	  	

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

 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
 	  	Three Months Ended
December 31	 	  	Year Ended
December 31	 	
 	  	2013	 	  	2012	 	  	2013	 	  	2012	 	
Gross premiums written	  	$	5,462     	  	  	$	5,146     	  	  	$	22,828     	  	  	$	21,593     	  	
Net premiums written	  	 	4,216     	  	  	 	3,657     	  	  	 	17,025     	  	  	 	16,075     	  	
Net premiums earned	  	 	4,363     	  	  	 	3,848     	  	  	 	16,613     	  	  	 	15,677     	  	
Losses and loss expenses	  	 	2,517     	  	  	 	2,683     	  	  	 	9,348     	  	  	 	9,653     	  	
Policy benefits	  	 	136     	  	  	 	142     	  	  	 	515     	  	  	 	521     	  	
Policy acquisition costs	  	 	702     	  	  	 	636     	  	  	 	2,659     	  	  	 	2,446     	  	
Administrative expenses	  	 	570     	  	  	 	553     	  	  	 	2,211     	  	  	 	2,096     	  	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Underwriting income (loss)	  	 	438     	  	  	 	(166)    	  	  	 	1,880     	  	  	 	961     	  	
Net investment income	  	 	557     	  	  	 	567     	  	  	 	2,144     	  	  	 	2,181     	  	
Net realized gains (losses)	  	 	154     	  	  	 	272     	  	  	 	504     	  	  	 	78     	  	
Interest expense	  	 	70     	  	  	 	63     	  	  	 	275     	  	  	 	250     	  	
Other income (expense):	  				  				  				  				
Gains (losses) from separate account assets	  	 	9     	  	  	 	11     	  	  	 	16     	  	  	 	29     	  	
Other	  	 	(2)    	  	  	 	9     	  	  	 	(31)    	  	  	 	(23)    	  	
Income tax expense (benefit)	  	 	88     	  	  	 	(135)    	  	  	 	480     	  	  	 	270     	  	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Net income	  	$	998     	  	  	$	765     	  	  	$	3,758     	  	  	$	2,706     	  	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Diluted earnings per share:	  				  				  				  				
Operating income	  	$	2.39     	  	  	$	1.43     	  	  	$	9.35     	  	  	$	7.65     	  	
Net income	  	$	2.90     	  	  	$	2.22     	  	  	$	10.92     	  	  	$	7.89     	  	
Weighted average diluted shares outstanding	  	 	344.2     	  	  	 	343.7     	  	  	 	344.1     	  	  	 	342.7     	  	
Loss and loss expense ratio	  	 	61.3%  	  	  	 	75.5%  	  	  	 	59.6%  	  	  	 	65.7%  	  	
Policy acquisition cost ratio	  	 	15.6%  	  	  	 	16.2%  	  	  	 	15.7%  	  	  	 	15.3%  	  	
Administrative expense ratio	  	 	12.4%  	  	  	 	13.8%  	  	  	 	12.7%  	  	  	 	12.9%  	  	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Combined ratio	  	 	89.3%  	  	  	 	105.5%  	  	  	 	88.0%  	  	  	 	93.9%  	  	

 
Page 9/10

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

 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	  	Three Months Ended
December 31	 	 	Year Ended
December 31	 	
 	  	2013	 	 	2012	 	 	2013	 	 	2012	 	
Gross Premiums Written	  				 				 				 				
Insurance - North American P&C	  	$	2,439	  	 	$	2,236	  	 	$	8,720	  	 	$	8,120	  	
Insurance - North American Agriculture	  	 	217	  	 	 	292	  	 	 	2,661	  	 	 	2,621	  	
Insurance - Overseas General	  	 	2,126	  	 	 	1,925	  	 	 	8,314	  	 	 	7,702	  	
Global Reinsurance	  	 	154	  	 	 	149	  	 	 	1,057	  	 	 	1,070	  	
Life	  	 	526	  	 	 	544	  	 	 	2,076	  	 	 	2,080	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total	  	$	5,462	  	 	$	5,146	  	 	$	  22,828	  	 	$	  21,593	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net Premiums Written	  				 				 				 				
Insurance - North American P&C	  	$	1,602	  	 	$	1,434	  	 	$	5,915	  	 	$	5,349	  	
Insurance - North American Agriculture	  	 	256	  	 	 	84	  	 	 	1,627	  	 	 	1,859	  	
Insurance - Overseas General	  	 	1,699	  	 	 	1,476	  	 	 	6,520	  	 	 	5,863	  	
Global Reinsurance	  	 	155	  	 	 	146	  	 	 	991	  	 	 	1,025	  	
Life	  	 	504	  	 	 	517	  	 	 	1,972	  	 	 	1,979	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total	  	$	4,216	  	 	$	3,657	  	 	$	17,025	  	 	$	16,075	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net Premiums Earned	  				 				 				 				
Insurance - North American P&C	  	$	1,511	  	 	$	1,345	  	 	$	5,721	  	 	$	5,147	  	
Insurance - North American Agriculture	  	 	426	  	 	 	263	  	 	 	1,678	  	 	 	1,872	  	
Insurance - Overseas General	  	 	1,700	  	 	 	1,497	  	 	 	6,333	  	 	 	5,740	  	
Global Reinsurance	  	 	245	  	 	 	254	  	 	 	976	  	 	 	1,002	  	
Life	  	 	481	  	 	 	489	  	 	 	1,905	  	 	 	1,916	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total	  	$	4,363	  	 	$	3,848	  	 	$	16,613	  	 	$	15,677	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Operating Income (loss)	  				 				 				 				
Insurance - North American P&C	  	$	402	  	 	$	171	  	 	$	1,446	  	 	$	1,100	  	
Insurance - North American Agriculture	  	 	(20	) 	 	 	(1	) 	 	 	63	  	 	 	(38	) 	
Insurance - Overseas General	  	 	279	  	 	 	246	  	 	 	1,094	  	 	 	994	  	
Global Reinsurance	  	 	145	  	 	 	74	  	 	 	576	  	 	 	499	  	
Life	  	 	86	  	 	 	74	  	 	 	307	  	 	 	324	  	
Corporate	  	 	(68	) 	 	 	(72	) 	 	 	(269	) 	 	 	(255	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total	  	$	824	  	 	$	492	  	 	$	3,217	  	 	$	2,624	  	

 
Page 10/10

Table of Contents
Exhibit 99.2

 

			
Investor Contact
 
Helen M. Wilson
Phone: (441) 299-9283
Fax: (441) 292-8675
email: investorrelations@acegroup.com	  	This report is for informational purposes only. It should be read in conjunction with documents filed by ACE Limited with the Securities and Exchange Commission, including the most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q.
 
Cautionary Statement Regarding Forward-Looking Statements:
 	
	  	Any forward-looking statements made in this financial supplement reflect ACE’s current views with respect to future events and financial performance and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements involve risks and uncertainties which may cause actual results to differ materially from those set forth in these statements. For example, our forward-looking statements, such as statements concerning exposures, reserves and recoverables, could be affected by the frequency of unpredictable catastrophic events, actual loss experience, uncertainties in the reserving or settlement process, new theories of liability, judicial, legislative, regulatory and other governmental developments, litigation tactics and developments, investigation developments and actual settlement terms, the amount and timing of reinsurance receivable and credit developments among reinsurers.	
		
	  	Our forward-looking statements could also be affected by competition, pricing and policy term trends, market acceptance, changes in demand, actual market developments, rating agency action, possible terrorism or the outbreak and effects of war. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the dates on which they are made. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.	

Table of Contents

	 	ACE Limited
 Financial Supplement Table of Contents	 		

 	  	Page	 	
I. Financial Highlights	  				
- Consolidated Financial Highlights	  	 	1	  	
		
II. Consolidated Results	  				
- Consolidated Results—Consecutive Quarters	  	 	2	  	
- Summary Consolidated Balance Sheets	  	 	3	  	
- Consolidated Premiums and Operating Income by Line of Business	  	 	4 - 5	 	
		
III. Segment Results	  				
- Insurance—North American—For Reference Only	  	 	6	  	
- Insurance—North American P&C	  	 	7	  	
- Insurance—North American Agriculture	  	 	8	  	
- Insurance—Overseas General	  	 	9	  	
- Global Reinsurance	  	 	10	  	
- Life	  	 	11	  	
		
IV. Balance Sheet Details	  				
- Loss Reserve Rollforward	  	 	12	  	
- Reinsurance Recoverable Analysis	  	 	13	  	
- Investment Portfolio	  	 	14 - 17	 	
- Net Realized and Unrealized Gains (Losses)	  	 	18	  	
- Capital Structure	  	 	19	  	
- Computation of Basic and Diluted Earnings Per Share	  	 	20	  	
		
V. Other Disclosures 	  				
- Non-GAAP Financial Measures	  	 	21 - 22	 	
- Book Value and Book Value per Common Share	  	 	23	  	
- Glossary	  	 	24	  	

Table of Contents

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

 	 	 	 	 	 	 	 	 	 	 	Constant $	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Constant $	 	
 	 	Three months ended
December 31	 	 	% Change
4Q-13 vs.	 	 	Constant $	 	 	% Change
4Q-13 vs.	 	 	Year ended
December 31	 	 	% Change
2013 vs.	 	 	Constant $	 	 	% Change
2013 vs.	 	
 	 	2013	 	 	2012	 	 	4Q-12	 	 	2012 (1)	 	 	4Q-12 (1)	 	 	2013	 	 	2012	 	 	2012	 	 	2012 (1)	 	 	2012 (1)	 	
Gross premiums written	 	$	5,462	  	 	$	5,146	  	 	 	6.1	% 	 	$	5,089	  	 	 	7.3	% 	 	$	22,828	  	 	$	21,593	  	 	 	5.7	% 	 	$	21,413	  	 	 	6.6	% 	
Net premiums written	 	$	4,216	  	 	$	3,657	  	 	 	15.3	% 	 	$	3,609	  	 	 	16.8	% 	 	$	17,025	  	 	$	16,075	  	 	 	5.9	% 	 	$	15,926	  	 	 	6.9	% 	
P&C net premiums written (2)	 	$	3,712	  	 	$	3,140	  	 	 	18.2	% 	 	$	3,098	  	 	 	19.8	% 	 	$	15,053	  	 	$	14,096	  	 	 	6.8	% 	 	$	13,958	  	 	 	7.8	% 	
Global P&C net premiums written  (3)	 	$	3,456	  	 	$	3,056	  	 	 	13.1	% 	 	$	3,014	  	 	 	14.7	% 	 	$	13,426	  	 	$	12,237	  	 	 	9.7	% 	 	$	12,099	  	 	 	11.0	% 	
Net premiums earned	 	$	4,363	  	 	$	3,848	  	 	 	13.4	% 	 	$	3,802	  	 	 	14.8	% 	 	$	16,613	  	 	$	15,677	  	 	 	6.0	% 	 	$	15,542	  	 	 	6.9	% 	
Net investment income	 	$	557	  	 	$	567	  	 	 	-1.7	% 	 				 				 	$	2,144	  	 	$	2,181	  	 	 	-1.7	% 	 				 				
Operating income	 	$	824	  	 	$	492	  	 	 	67.5	% 	 				 				 	$	3,217	  	 	$	2,624	  	 	 	22.6	% 	 				 				
Net income	 	$	998	  	 	$	765	  	 	 	30.5	% 	 				 				 	$	3,758	  	 	$	2,706	  	 	 	38.9	% 	 				 				
Comprehensive income	 	$	776	  	 	$	638	  	 	 	21.6	% 	 				 				 	$	2,023	  	 	$	3,682	  	 	 	-45.1	% 	 				 				
Operating cash flow	 	$	1,286	  	 	$	970	  	 				 				 				 	$	4,022	  	 	$	3,995	  	 				 				 				
P&C combined ratio	 				 				 				 				 				 				 				 				 				 				
Loss and loss expense ratio	 	 	61.3	% 	 	 	75.5	% 	 				 				 				 	 	59.6	% 	 	 	65.7	% 	 				 				 				
Underwriting and administrative expense ratio	 	 	28.0	% 	 	 	30.0	% 	 				 				 				 	 	28.4	% 	 	 	28.2	% 	 				 				 				
	 	 	 	 	 	 	 	 	 				 				 				 	 	 	 	 	 	 	 	 				 				 				
Combined ratio	 	 	89.3	% 	 	 	105.5	% 	 				 				 				 	 	88.0	% 	 	 	93.9	% 	 				 				 				
Operating return on equity (ROE)	 	 	12.1	% 	 	 	8.0	% 	 				 				 				 	 	12.2	% 	 	 	11.0	% 	 				 				 				
ROE	 	 	14.0	% 	 	 	11.2	% 	 				 				 				 	 	13.3	% 	 	 	10.4	% 	 				 				 				
Operating effective tax rate	 	 	9.2	% 	 	 	-46.8 	%  (4)  	 				 				 				 	 	11.6	% 	 	 	7.5	% 	 				 				 				
Effective tax rate	 	 	8.1	% 	 	 	-21.4 	%  (4)  	 				 				 				 	 	11.3	% 	 	 	9.1	% 	 				 				 				
Diluted earnings per share	 				 				 				 				 				 				 				 				 				 				
Operating income	 	$	2.39	  	 	$	1.43	  	 	 	67.1	% 	 				 				 	$	9.35	  	 	$	7.65	  	 	 	22.2	% 	 				 				
Net income	 	$	2.90	  	 	$	2.22	  	 	 	30.6	% 	 				 				 	$	10.92	  	 	$	7.89	  	 	 	38.4	% 	 				 				
Book value per common share	 				 				 				 				 				 	$	84.83	  	 	$	80.90	  	 	 	4.9	% 	 				 				
Tangible book value per common share	 				 				 				 				 				 	$	68.93	  	 	$	66.28	  	 	 	4.0	% 	 				 				
Tangible book value per common share excluding 2013 acquisitions  (5)	 				 				 				 				 				 	$	70.69	  	 	$	66.28	  	 	 	6.7	% 	 				 				
Weighted average basic common shares outstanding	 	 	340.9	  	 	 	340.8	  	 				 				 				 	 	340.9	  	 	 	339.8	  	 				 				 				
Weighted average diluted common shares outstanding	 	 	344.2	  	 	 	343.7	  	 				 				 				 	 	344.1	  	 	 	342.7	  	 				 				 				
Debt plus trust preferred securities/ tangible capital	 				 				 				 				 				 	 	20.4	% 	 	 	18.4	% 	 				 				 				
 
(1)	Prior periods on a constant dollar basis.	
(2)	P&C net premiums written is defined as consolidated net premiums written excluding net premiums written of the company’s Life segment. See non-GAAP financial measures.	
(3)	Global P&C net premiums written is defined as consolidated net premiums written excluding net premiums written of the company’s Life and Insurance—North American Agriculture segments. See non-GAAP financial measures.	
(4)	For Q4 2012, Operating effective tax rate and Effective tax rate include a $121 million tax benefit from the favorable resolution of prior years’ tax matters.	
(5)	For 2013, tangible book value per common share excludes the impact from goodwill and intangibles relating to the acquisitions of ABA Seguros and Fianzas Monterrey of $403 million and $197 million, respectively.	

Financial Highlights	  	Page 1	

Table of Contents

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

 	  	4Q-13	 	 	3Q-13	 	 	2Q-13	 	 	1Q-13	 	 	4Q-12	 	 	Full Year
2013	 	 	Full Year
2012	 	
Global P&C (Including Corporate) (1)	  				 				 				 				 				 				 				
Gross premiums written	  	$	4,719	  	 	$	4,417	  	 	$	4,769	  	 	$	4,186	  	 	$	4,310	  	 	$	18,091	  	 	$	16,892	  	
Net premiums written	  	 	3,456	  	 	 	3,336	  	 	 	3,451	  	 	 	3,183	  	 	 	3,056	  	 	 	13,426	  	 	 	12,237	  	
Net premiums earned	  	 	3,456	  	 	 	3,294	  	 	 	3,236	  	 	 	3,044	  	 	 	3,096	  	 	 	13,030	  	 	 	11,889	  	
Losses and loss expenses	  	 	1,925	  	 	 	1,768	  	 	 	1,812	  	 	 	1,737	  	 	 	2,272	  	 	 	7,242	  	 	 	7,131	  	
Policy acquisition costs	  	 	608	  	 	 	560	  	 	 	550	  	 	 	530	  	 	 	543	  	 	 	2,248	  	 	 	2,084	  	
Administrative expenses	  	 	485	  	 	 	473	  	 	 	475	  	 	 	424	  	 	 	466	  	 	 	1,857	  	 	 	1,775	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Underwriting income (loss)	  	 	438	  	 	 	493	  	 	 	399	  	 	 	353	  	 	 	(185	) 	 	 	1,683	  	 	 	899	  	
Net investment income	  	 	486	  	 	 	455	  	 	 	464	  	 	 	462	  	 	 	496	  	 	 	1,867	  	 	 	1,905	  	
Interest expense	  	 	66	  	 	 	68	  	 	 	69	  	 	 	56	  	 	 	60	  	 	 	259	  	 	 	238	  	
Other income (expense)—operating (2)	  	 	(15	) 	 	 	(21	) 	 	 	(23	) 	 	 	(14	) 	 	 	(2	) 	 	 	(73	) 	 	 	(41	) 	
Income tax expense (benefit)	  	 	85	  	 	 	127	  	 	 	83	  	 	 	76	  	 	 	(170	) 	 	 	371	  	 	 	187	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Global P&C operating income	  	 	758	  	 	 	732	  	 	 	688	  	 	 	669	  	 	 	419	  	 	 	2,847	  	 	 	2,338	  	
Insurance—North American Agriculture segment operating income (loss) (3)	  	 	(20	) 	 	 	50	  	 	 	26	  	 	 	7	  	 	 	(1	) 	 	 	63	  	 	 	(38	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Operating income (including Corporate) excluding Life segment	  	 	738	  	 	 	782	  	 	 	714	  	 	 	676	  	 	 	418	  	 	 	2,910	  	 	 	2,300	  	
Life segment operating income	  	 	86	  	 	 	75	  	 	 	76	  	 	 	70	  	 	 	74	  	 	 	307	  	 	 	324	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Consolidated operating income	  	 	824	  	 	 	857	  	 	 	790	  	 	 	746	  	 	 	492	  	 	 	3,217	  	 	 	2,624	  	
Adjusted net realized gains (losses) (3)	  	 	154	  	 	 	41	  	 	 	104	  	 	 	206	  	 	 	272	  	 	 	505	  	 	 	78	  	
Net realized gains (losses) related to unconsolidated entities	  	 	25	  	 	 	22	  	 	 	12	  	 	 	33	  	 	 	23	  	 	 	92	  	 	 	62	  	
Income tax expense on net realized gains (losses)	  	 	5	  	 	 	4	  	 	 	15	  	 	 	32	  	 	 	22	  	 	 	56	  	 	 	58	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Consolidated net income	  	$	998	  	 	$	916	  	 	$	891	  	 	$	953	  	 	$	765	  	 	$	3,758	  	 	$	2,706	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Additional Global P&C financial data (1)	  				 				 				 				 				 				 				
% Change versus prior year period	  				 				 				 				 				 				 				
Net premiums written as reported	  	 	13.1	% 	 	 	8.9	% 	 	 	9.5	% 	 	 	7.3	% 	 	 	6.9	% 	 	 	9.7	% 	 	 	6.3	% 	
Net premiums earned as reported	  	 	11.6	% 	 	 	9.1	% 	 	 	10.7	% 	 	 	6.8	% 	 	 	5.5	% 	 	 	9.6	% 	 	 	2.6	% 	
Net premiums written constant $	  	 	14.7	% 	 				 				 				 				 	 	11.0	% 	 				
Net premiums earned constant $	  	 	13.1	% 	 				 				 				 				 	 	10.8	% 	 				
Other ratios	  				 				 				 				 				 				 				
Net premiums written/gross premiums written	  	 	73	% 	 	 	76	% 	 	 	72	% 	 	 	76	% 	 	 	71	% 	 	 	74	% 	 	 	72	% 	
Combined ratio	  				 				 				 				 				 				 				
Loss and loss expense ratio	  	 	55.7	% 	 	 	53.7	% 	 	 	56.0	% 	 	 	57.1	% 	 	 	73.4	% 	 	 	55.6	% 	 	 	60.0	% 	
Policy acquisition cost ratio	  	 	17.6	% 	 	 	17.0	% 	 	 	17.0	% 	 	 	17.4	% 	 	 	17.5	% 	 	 	17.3	% 	 	 	17.5	% 	
Administrative expense ratio	  	 	14.1	% 	 	 	14.3	% 	 	 	14.7	% 	 	 	13.9	% 	 	 	15.1	% 	 	 	14.2	% 	 	 	14.9	% 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Combined ratio	  	 	87.4	% 	 	 	85.0	% 	 	 	87.7	% 	 	 	88.4	% 	 	 	106.0	% 	 	 	87.1	% 	 	 	92.4	% 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Combined ratio excluding catastrophe losses and PPD	  	 	89.9	% 	 	 	88.9	% 	 	 	89.2	% 	 	 	89.5	% 	 	 	90.8	% 	 	 	89.4	% 	 	 	91.1	% 	
Expense ratio	  	 	31.7	% 	 	 	31.3	% 	 	 	31.7	% 	 	 	31.3	% 	 	 	32.6	% 	 	 	31.5	% 	 	 	32.4	% 	
Expense ratio excluding A&H	  	 	27.9	% 	 	 	27.6	% 	 	 	28.3	% 	 	 	27.7	% 	 	 	29.1	% 	 	 	27.9	% 	 	 	28.9	% 	
Catastrophe reinstatement premiums (expensed) collected - pre-tax	  	$	1	  	 	$	2	  	 	$	—  	  	 	$	—  	  	 	$	(7	) 	 	$	3	  	 	$	(5	) 	
Catastrophe losses - pre-tax	  	$	35	  	 	$	78	  	 	$	78	  	 	$	32	  	 	$	500	  	 	$	223	  	 	$	622	  	
Favorable prior period development (PPD) - pre-tax (4)	  	$	(122	) 	 	$	(200	) 	 	$	(128	) 	 	$	(67	) 	 	$	(36	) 	 	$	(517	) 	 	$	(467	) 	
Loss and loss expense ratio excluding catastrophe losses and PPD	  	 	58.3	% 	 	 	57.7	% 	 	 	57.6	% 	 	 	58.1	% 	 	 	58.2	% 	 	 	58.0	% 	 	 	58.7	% 	
 
(1)	Presented excluding the Insurance—North American Agriculture and Life segments. This is a non-GAAP financial measure.	
(2)	Excludes portion of net realized investment gains and losses related to unconsolidated entities.	
(3)	Losses from fair value changes on crop derivatives are excluded from Adjusted net realized gains (losses) and included in Insurance—North American Agriculture segment operating income (loss) for this presentation. Crop derivative losses for YTD 2013 were $1 million.	
(4)	For Q4 2013 and YTD 2013, favorable prior period development is net of $5 million and $28 million, respectively, of net earned premium adjustments on loss sensitive policies.	

Consolidated Results	  	Page 2	

Table of Contents

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

 	  	December 31
2013	 	 	September 30
2013	 	 	June 30
2013	 	 	March 31
2013	 	 	December 31
2012	 	
Assets	  				 				 				 				 				
Fixed maturities available for sale, at fair value	  	$	49,254	  	 	$	48,529	  	 	$	47,016	  	 	$	47,947	  	 	$	47,306	  	
Fixed maturities held to maturity, at amortized cost	  	 	6,098	  	 	 	6,306	  	 	 	6,576	  	 	 	6,867	  	 	 	7,270	  	
Equity securities, at fair value	  	 	837	  	 	 	831	  	 	 	837	  	 	 	832	  	 	 	744	  	
Short-term investments, at fair value	  	 	1,763	  	 	 	1,774	  	 	 	2,425	  	 	 	2,893	  	 	 	2,228	  	
Other investments	  	 	2,976	  	 	 	2,902	  	 	 	2,836	  	 	 	2,820	  	 	 	2,716	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total investments	  	 	60,928	  	 	 	60,342	  	 	 	59,690	  	 	 	61,359	  	 	 	60,264	  	
Cash	  	 	579	  	 	 	768	  	 	 	679	  	 	 	855	  	 	 	615	  	
Securities lending collateral	  	 	1,632	  	 	 	1,517	  	 	 	1,662	  	 	 	1,786	  	 	 	1,791	  	
Insurance and reinsurance balances receivable	  	 	5,026	  	 	 	5,089	  	 	 	5,022	  	 	 	4,154	  	 	 	4,147	  	
Reinsurance recoverable on losses and loss expenses	  	 	11,227	  	 	 	11,477	  	 	 	11,442	  	 	 	11,530	  	 	 	12,078	  	
Deferred policy acquisition costs	  	 	2,313	  	 	 	2,224	  	 	 	2,077	  	 	 	1,966	  	 	 	1,873	  	
Value of business acquired	  	 	536	  	 	 	554	  	 	 	560	  	 	 	583	  	 	 	614	  	
Prepaid reinsurance premiums	  	 	1,675	  	 	 	1,724	  	 	 	1,819	  	 	 	1,653	  	 	 	1,617	  	
Goodwill and other intangible assets	  	 	5,404	  	 	 	5,465	  	 	 	5,395	  	 	 	4,909	  	 	 	4,975	  	
Deferred tax assets	  	 	616	  	 	 	584	  	 	 	753	  	 	 	505	  	 	 	453	  	
Investments in partially-owned insurance companies	  	 	470	  	 	 	468	  	 	 	452	  	 	 	449	  	 	 	454	  	
Other assets	  	 	4,104	  	 	 	4,372	  	 	 	4,137	  	 	 	3,712	  	 	 	3,664	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total assets	  	$	94,510	  	 	$	94,584	  	 	$	93,688	  	 	$	93,461	  	 	$	92,545	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Liabilities	  				 				 				 				 				
Unpaid losses and loss expenses	  	$	37,443	  	 	$	37,882	  	 	$	37,343	  	 	$	37,082	  	 	$	37,946	  	
Unearned premiums	  	 	7,539	  	 	 	7,794	  	 	 	7,851	  	 	 	7,019	  	 	 	6,864	  	
Future policy benefits	  	 	4,615	  	 	 	4,596	  	 	 	4,502	  	 	 	4,465	  	 	 	4,470	  	
Insurance and reinsurance balances payable	  	 	3,628	  	 	 	3,627	  	 	 	3,624	  	 	 	3,402	  	 	 	3,472	  	
Securities lending payable	  	 	1,633	  	 	 	1,520	  	 	 	1,665	  	 	 	1,789	  	 	 	1,795	  	
Accounts payable, accrued expenses, and other liabilities	  	 	4,810	  	 	 	4,929	  	 	 	5,391	  	 	 	5,744	  	 	 	5,397	  	
Short-term debt	  	 	1,901	  	 	 	1,902	  	 	 	1,901	  	 	 	1,402	  	 	 	1,401	  	
Long-term debt	  	 	3,807	  	 	 	3,807	  	 	 	3,807	  	 	 	4,307	  	 	 	3,360	  	
Trust preferred securities	  	 	309	  	 	 	309	  	 	 	309	  	 	 	309	  	 	 	309	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total liabilities	  	 	65,685	  	 	 	66,366	  	 	 	66,393	  	 	 	65,519	  	 	 	65,014	  	
Shareholders’ equity	  				 				 				 				 				
Total shareholders’ equity, excl. AOCI	  	 	27,673	  	 	 	26,844	  	 	 	26,035	  	 	 	25,292	  	 	 	24,644	  	
Accumulated other comprehensive income (AOCI)	  	 	1,152	  	 	 	1,374	  	 	 	1,260	  	 	 	2,650	  	 	 	2,887	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total shareholders’ equity	  	 	28,825	  	 	 	28,218	  	 	 	27,295	  	 	 	27,942	  	 	 	27,531	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total liabilities and shareholders’ equity	  	$	94,510	  	 	$	94,584	  	 	$	93,688	  	 	$	93,461	  	 	$	92,545	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Book value per common share	  	$	84.83	  	 	$	82.98	  	 	$	80.26	  	 	$	82.17	  	 	$	80.90	  	
% change over prior quarter	  	 	2.2	% 	 	 	3.4	% 	 	 	-2.3	% 	 	 	1.6	% 	 	 	1.9	% 	
Tangible book value per common share	  	$	68.93	  	 	$	66.91	  	 	$	64.40	  	 	$	67.74	  	 	$	66.28	  	
% change over prior quarter	  	 	3.0	% 	 	 	3.9	% 	 	 	-4.9	% 	 	 	2.2	% 	 	 	2.5	% 	

Consol Bal Sheet	  	Page 3	

Table of Contents

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

 	 	4Q-13	 	 	% of
Total
Consolidated	 	 	4Q-12	 	 	% of
Total
Consolidated	 	 	% Change
4Q-13 vs.
4Q-12	 	 	Full
Year
2013	 	 	% of
Total
Consolidated	 	 	Full
Year
2012	 	 	% of
Total
Consolidated	 	 	% Change
2013 vs.
2012	 	
Net premiums written	 				 				 				 				 				 				 				 				 				 				
Property and all other	 	$	1,132	  	 	 	27	% 	 	$	939	  	 	 	26	% 	 	 	20.6	% 	 	$	4,855	  	 	 	29	% 	 	$	4,240	  	 	 	26	% 	 	 	14.5	% 	
Agriculture	 	 	256	  	 	 	6	% 	 	 	84	  	 	 	2	% 	 	 	203.6	% 	 	 	1,627	  	 	 	10	% 	 	 	1,859	  	 	 	12	% 	 	 	-12.5	% 	
Casualty	 	 	1,644	  	 	 	39	% 	 	 	1,475	  	 	 	40	% 	 	 	11.5	% 	 	 	5,932	  	 	 	34	% 	 	 	5,476	  	 	 	34	% 	 	 	8.3	% 	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 				 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 				
Subtotal	 	 	3,032	  	 	 	72	% 	 	 	2,498	  	 	 	68	% 	 	 	21.4	% 	 	 	12,414	  	 	 	73	% 	 	 	11,575	  	 	 	72	% 	 	 	7.2	% 	
Personal accident (A&H) (1)	 	 	937	  	 	 	22	% 	 	 	911	  	 	 	25	% 	 	 	2.9	% 	 	 	3,655	  	 	 	21	% 	 	 	3,532	  	 	 	22	% 	 	 	3.5	% 	
Life	 	 	247	  	 	 	6	% 	 	 	248	  	 	 	7	% 	 	 	-0.9	% 	 	 	956	  	 	 	6	% 	 	 	968	  	 	 	6	% 	 	 	-1.4	% 	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 				 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 				
Total consolidated	 	$	4,216	  	 	 	100	% 	 	$	3,657	  	 	 	100	% 	 	 	15.3	% 	 	$	17,025	  	 	 	100	% 	 	$	16,075	  	 	 	100	% 	 	 	5.9	% 	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 				 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 				
Net premiums earned	 				 				 				 				 				 				 				 				 				 				
Property and all other	 	$	1,261	  	 	 	29	% 	 	$	1,087	  	 	 	28	% 	 	 	16.0	% 	 	$	4,704	  	 	 	28	% 	 	$	4,101	  	 	 	26	% 	 	 	14.7	% 	
Agriculture	 	 	426	  	 	 	10	% 	 	 	263	  	 	 	7	% 	 	 	62.3	% 	 	 	1,678	  	 	 	10	% 	 	 	1,872	  	 	 	12	% 	 	 	-10.4	% 	
Casualty	 	 	1,522	  	 	 	35	% 	 	 	1,367	  	 	 	36	% 	 	 	11.3	% 	 	 	5,759	  	 	 	35	% 	 	 	5,292	  	 	 	34	% 	 	 	8.8	% 	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 				 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 				
Subtotal	 	 	3,209	  	 	 	74	% 	 	 	2,717	  	 	 	71	% 	 	 	18.1	% 	 	 	12,141	  	 	 	73	% 	 	 	11,265	  	 	 	72	% 	 	 	7.8	% 	
Personal accident (A&H) (1)	 	 	920	  	 	 	21	% 	 	 	894	  	 	 	23	% 	 	 	2.8	% 	 	 	3,567	  	 	 	21	% 	 	 	3,499	  	 	 	22	% 	 	 	1.9	% 	
Life	 	 	234	  	 	 	5	% 	 	 	237	  	 	 	6	% 	 	 	-1.2	% 	 	 	905	  	 	 	6	% 	 	 	913	  	 	 	6	% 	 	 	-0.9	% 	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 				 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 				
Total consolidated	 	$	4,363	  	 	 	100	% 	 	$	3,848	  	 	 	100	% 	 	 	13.4	% 	 	$	16,613	  	 	 	100	% 	 	$	15,677	  	 	 	100	% 	 	 	6.0	% 	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 				 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 				
Operating income (loss)	 				 				 				 				 				 				 				 				 				 				
Property, casualty, and all other	 	$	680	  	 	 	82	% 	 	$	314	  	 	 	64	% 	 	 	116.6	% 	 	$	2,515	  	 	 	78	% 	 	$	2,002	  	 	 	76	% 	 	 	25.6	% 	
Agriculture	 	 	(20	) 	 	 	-2	% 	 	 	(1	) 	 	 	0	% 	 	 	NM	  	 	 	63	  	 	 	2	% 	 	 	(38	) 	 	 	-1	% 	 	 	NM	  	
Personal accident (A&H) (1)	 	 	129	  	 	 	16	% 	 	 	141	  	 	 	28	% 	 	 	-7.4 	%  (2)  	 	 	497	  	 	 	15	% 	 	 	494	  	 	 	19	% 	 	 	0.8	% 	
Life	 	 	35	  	 	 	4	% 	 	 	38	  	 	 	8	% 	 	 	-8.3	% 	 	 	142	  	 	 	5	% 	 	 	166	  	 	 	6	% 	 	 	-14.3	% 	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 				 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 				
Total consolidated	 	$	824	  	 	 	100	% 	 	$	492	  	 	 	100	% 	 	 	67.5	% 	 	$	3,217	  	 	 	100	% 	 	$	2,624	  	 	 	100	% 	 	 	22.6	% 	

(1)	For purposes of this schedule only, A&H results from our Combined North American and International businesses, normally included in the Life and Insurance—Overseas General segments, respectively, are included in the Personal Accident (A&H) line items above.	
(2)	A&H operating income for Q4 2013 and Q4 2012 includes non-recurring tax items, including a one off tax benefit in Q4 2013 and a Q4 2012 tax benefit from the favorable resolution of prior years’ tax matters. Excluding the non-recurring tax items, A&H operating income increased 3.1%.	

Line of Business	  	Page 4	

Table of Contents

	 	ACE Limited
Consolidated Premiums and Operating Income by Line of Business, Adjusted for Foreign Exchange
(in millions of U.S. dollars)
(Unaudited)	 		
ACE Limited Consolidated Constant Dollar

   	  	4Q-13	 	  	Constant $
4Q-12 (2)	 	  	Constant $
% Change
4Q-13 vs.
4Q-12	 	 	Full Year
2013	 	  	Constant $
Full Year
2012 (2)	 	  	Constant $
% Change
2013 vs.
2012 (2)	 	
Net premiums written	  				  				  				 				  				  				
Property, casualty, agriculture, and all other	  	$	3,032	  	  	$	2,468	  	  	 	22.9	% 	 	$	12,414	  	  	$	11,470	  	  	 	8.2	% 	
Personal accident (A&H) (1)	  	 	937	  	  	 	896	  	  	 	4.7	% 	 	 	3,655	  	  	 	3,493	  	  	 	4.7	% 	
Life	  	 	247	  	  	 	245	  	  	 	0.6	% 	 	 	956	  	  	 	963	  	  	 	-0.8	% 	
	  	 	 	 	  	 	 	 	  				 	 	 	 	  	 	 	 	  				
Total consolidated	  	$	4,216	  	  	$	3,609	  	  	 	16.8	% 	 	$	17,025	  	  	$	15,926	  	  	 	6.9	% 	
	  	 	 	 	  	 	 	 	  				 	 	 	 	  	 	 	 	  				
Net premiums earned	  				  				  				 				  				  				
Property, casualty, agriculture, and all other	  	$	3,209	  	  	$	2,690	  	  	 	19.3	% 	 	$	12,141	  	  	$	11,171	  	  	 	8.7	% 	
Personal accident (A&H) (1)	  	 	920	  	  	 	878	  	  	 	4.6	% 	 	 	3,567	  	  	 	3,462	  	  	 	3.0	% 	
Life	  	 	234	  	  	 	234	  	  	 	0.0	% 	 	 	905	  	  	 	909	  	  	 	-0.5	% 	
	  	 	 	 	  	 	 	 	  				 	 	 	 	  	 	 	 	  				
Total consolidated	  	$	4,363	  	  	$	3,802	  	  	 	14.8	% 	 	$	16,613	  	  	$	15,542	  	  	 	6.9	% 	
	  	 	 	 	  	 	 	 	  				 	 	 	 	  	 	 	 	  				
Operating income	  				  				  				 				  				  				
Property, casualty, agriculture, and all other	  	$	660	  	  	$	311	  	  	 	112.2	% 	 	$	2,578	  	  	$	1,955	  	  	 	31.9	% 	
Personal accident (A&H) (1)	  	 	129	  	  	 	139	  	  	 	-7.0	% 	 	 	497	  	  	 	490	  	  	 	1.3	% 	
Life	  	 	35	  	  	 	39	  	  	 	-9.2	% 	 	 	142	  	  	 	167	  	  	 	-14.7	% 	
	  	 	 	 	  	 	 	 	  				 	 	 	 	  	 	 	 	  				
Total consolidated	  	$	824	  	  	$	489	  	  	 	68.4	% 	 	$	3,217	  	  	$	2,612	  	  	 	23.1	% 	

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

Line of Business 2	  	Page 5	

Table of Contents

	 	ACE Limited
 Insurance—North American
(in millions of U.S. dollars, except ratios)
(Unaudited)	 		
Effective Q1 2013, the company’s Insurance—North American business is presented in two distinct reporting segments: Insurance—North American P&C (refer to page 7) and Insurance—North American Agriculture (refer to page 8). The below table shows the previous Insurance—North American business presentation and should be used for reference purposes only.
Insurance—North American

   	  	4Q-13	 	 	3Q-13	 	 	2Q-13	 	 	1Q-13	 	 	4Q-12	 	 	Full Year
2013	 	 	Full Year
2012	 	
Gross premiums written	  	$	2,656	  	 	$	3,581	  	 	$	3,076	  	 	$	2,068	  	 	$	2,528	  	 	$	11,381	  	 	$	10,741	  	
Net premiums written	  	 	1,858	  	 	 	2,305	  	 	 	1,982	  	 	 	1,397	  	 	 	1,518	  	 	 	7,542	  	 	 	7,208	  	
Net premiums earned	  	 	1,937	  	 	 	2,293	  	 	 	1,779	  	 	 	1,390	  	 	 	1,608	  	 	 	7,399	  	 	 	7,019	  	
Losses and loss expenses	  	 	1,438	  	 	 	1,710	  	 	 	1,243	  	 	 	910	  	 	 	1,504	  	 	 	5,301	  	 	 	5,626	  	
Policy acquisition costs	  	 	150	  	 	 	191	  	 	 	162	  	 	 	147	  	 	 	142	  	 	 	650	  	 	 	586	  	
Administrative expenses	  	 	162	  	 	 	158	  	 	 	162	  	 	 	130	  	 	 	153	  	 	 	612	  	 	 	601	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Underwriting income (loss)	  	 	187	  	 	 	234	  	 	 	212	  	 	 	203	  	 	 	(191	) 	 	 	836	  	 	 	206	  	
Net investment income	  	 	273	  	 	 	260	  	 	 	257	  	 	 	257	  	 	 	283	  	 	 	1,047	  	 	 	1,091	  	
Interest expense	  	 	2	  	 	 	3	  	 	 	3	  	 	 	(2	) 	 	 	3	  	 	 	6	  	 	 	12	  	
Other income (expense)—operating	  	 	(7	) 	 	 	(11	) 	 	 	(12	) 	 	 	(7	) 	 	 	(8	) 	 	 	(37	) 	 	 	(49	) 	
Income tax expense (benefit)	  	 	69	  	 	 	88	  	 	 	87	  	 	 	87	  	 	 	(89	) 	 	 	331	  	 	 	174	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Operating income	  	 	382	  	 	 	392	  	 	 	367	  	 	 	368	  	 	 	170	  	 	 	1,509	  	 	 	1,062	  	
Net realized gains (losses)	  	 	9	  	 	 	10	  	 	 	29	  	 	 	26	  	 	 	26	  	 	 	74	  	 	 	42	  	
Net realized gains (losses) related to unconsolidated entities	  	 	19	  	 	 	16	  	 	 	14	  	 	 	14	  	 	 	21	  	 	 	63	  	 	 	58	  	
Income tax expense on net realized gains (losses)	  	 	10	  	 	 	5	  	 	 	12	  	 	 	9	  	 	 	10	  	 	 	36	  	 	 	26	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income	  	$	400	  	 	$	413	  	 	$	398	  	 	$	399	  	 	$	207	  	 	$	1,610	  	 	$	1,136	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Combined ratio	  				 				 				 				 				 				 				
Loss and loss expense ratio	  	 	74.2	% 	 	 	74.6	% 	 	 	69.9	% 	 	 	65.5	% 	 	 	93.6	% 	 	 	71.6	% 	 	 	80.2	% 	
Policy acquisition cost ratio	  	 	7.7	% 	 	 	8.4	% 	 	 	9.1	% 	 	 	10.5	% 	 	 	8.8	% 	 	 	8.8	% 	 	 	8.3	% 	
Administrative expense ratio	  	 	8.5	% 	 	 	6.8	% 	 	 	9.1	% 	 	 	9.4	% 	 	 	9.5	% 	 	 	8.3	% 	 	 	8.6	% 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Combined ratio	  	 	90.4	% 	 	 	89.8	% 	 	 	88.1	% 	 	 	85.4	% 	 	 	111.9	% 	 	 	88.7	% 	 	 	97.1	% 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Combined ratio excluding catastrophe losses and PPD	  	 	91.1	% 	 	 	90.1	% 	 	 	87.7	% 	 	 	87.6	% 	 	 	90.0	% 	 	 	89.3	% 	 	 	93.4	% 	
Catastrophe reinstatement premiums expensed - pre-tax	  	$	—  	  	 	$	—  	  	 	$	(1	) 	 	$	—  	  	 	$	(8	) 	 	$	(1	) 	 	$	(8	) 	
Catastrophe losses - pre-tax	  	$	14	  	 	$	23	  	 	$	53	  	 	$	11	  	 	$	338	  	 	$	101	  	 	$	441	  	
Unfavorable (favorable) prior period development (PPD) - pre-tax	  	$	(28	) 	 	$	(29	) 	 	$	(47	) 	 	$	(43	) 	 	$	7	  	 	$	(147	) 	 	$	(192	) 	
Loss and loss expense ratio excluding catastrophe losses and PPD	  	 	75.0	% 	 	 	75.0	% 	 	 	69.7	% 	 	 	67.6	% 	 	 	71.8	% 	 	 	72.4	% 	 	 	76.6	% 	
% Change versus prior year period	  				 				 				 				 				 				 				
Net premiums written	  	 	22.5	% 	 	 	-9.1	% 	 	 	6.6	% 	 	 	8.0	% 	 	 	-6.5	% 	 	 	4.6	% 	 	 	5.2	% 	
Net premiums earned	  	 	20.4	% 	 	 	-7.2	% 	 	 	7.7	% 	 	 	7.9	% 	 	 	-3.2	% 	 	 	5.4	% 	 	 	1.6	% 	
Other ratios	  				 				 				 				 				 				 				
Net premiums written/gross premiums written	  	 	70	% 	 	 	64	% 	 	 	64	% 	 	 	68	% 	 	 	60	% 	 	 	66	% 	 	 	67	% 	

Insurance—North American	  	Page 6	

Table of Contents

	 	ACE Limited
Segment Results—Consecutive Quarters
(in millions of U.S. dollars, except ratios)
(Unaudited)	 		
Insurance—North American P&C (1)

   	  	4Q-13	 	 	3Q-13	 	 	2Q-13	 	 	1Q-13	 	 	4Q-12	 	 	Full Year
2013	 	 	Full Year
2012	 	
Gross premiums written	  	$	2,439	  	 	$	2,135	  	 	$	2,327	  	 	$	1,819	  	 	$	2,236	  	 	$	8,720	  	 	$	8,120	  	
Net premiums written	  	 	1,602	  	 	 	1,500	  	 	 	1,529	  	 	 	1,284	  	 	 	1,434	  	 	 	5,915	  	 	 	5,349	  	
Net premiums earned	  	 	1,511	  	 	 	1,444	  	 	 	1,428	  	 	 	1,338	  	 	 	1,345	  	 	 	5,721	  	 	 	5,147	  	
Losses and loss expenses	  	 	985	  	 	 	963	  	 	 	950	  	 	 	878	  	 	 	1,241	  	 	 	3,776	  	 	 	3,715	  	
Policy acquisition costs	  	 	153	  	 	 	159	  	 	 	142	  	 	 	143	  	 	 	139	  	 	 	597	  	 	 	558	  	
Administrative expenses	  	 	164	  	 	 	153	  	 	 	159	  	 	 	125	  	 	 	157	  	 	 	601	  	 	 	608	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Underwriting income (loss)	  	 	209	  	 	 	169	  	 	 	177	  	 	 	192	  	 	 	(192	) 	 	 	747	  	 	 	266	  	
Net investment income	  	 	266	  	 	 	254	  	 	 	250	  	 	 	251	  	 	 	277	  	 	 	1,021	  	 	 	1,066	  	
Interest expense	  	 	1	  	 	 	3	  	 	 	3	  	 	 	(2	) 	 	 	3	  	 	 	5	  	 	 	12	  	
Other income (expense)—operating	  	 	1	  	 	 	(3	) 	 	 	(4	) 	 	 	1	  	 	 	—  	  	 	 	(5	) 	 	 	(17	) 	
Income tax expense (benefit)	  	 	73	  	 	 	75	  	 	 	79	  	 	 	85	  	 	 	(89	) 	 	 	312	  	 	 	203	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Operating income	  	 	402	  	 	 	342	  	 	 	341	  	 	 	361	  	 	 	171	  	 	 	1,446	  	 	 	1,100	  	
Net realized gains (losses)	  	 	9	  	 	 	9	  	 	 	28	  	 	 	26	  	 	 	26	  	 	 	72	  	 	 	41	  	
Net realized gains (losses) related to unconsolidated entities	  	 	19	  	 	 	16	  	 	 	14	  	 	 	14	  	 	 	21	  	 	 	63	  	 	 	58	  	
Income tax expense on net realized gains (losses)	  	 	10	  	 	 	4	  	 	 	12	  	 	 	9	  	 	 	10	  	 	 	35	  	 	 	26	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income	  	$	420	  	 	$	363	  	 	$	371	  	 	$	392	  	 	$	208	  	 	$	1,546	  	 	$	1,173	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Combined ratio	  				 				 				 				 				 				 				
Loss and loss expense ratio	  	 	65.2	% 	 	 	66.7	% 	 	 	66.6	% 	 	 	65.6	% 	 	 	92.2	% 	 	 	66.0	% 	 	 	72.2	% 	
Policy acquisition cost ratio	  	 	10.1	% 	 	 	11.1	% 	 	 	9.9	% 	 	 	10.7	% 	 	 	10.3	% 	 	 	10.4	% 	 	 	10.8	% 	
Administrative expense ratio	  	 	10.9	% 	 	 	10.5	% 	 	 	11.1	% 	 	 	9.4	% 	 	 	11.8	% 	 	 	10.5	% 	 	 	11.8	% 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Combined ratio	  	 	86.2	% 	 	 	88.3	% 	 	 	87.6	% 	 	 	85.7	% 	 	 	114.3	% 	 	 	86.9	% 	 	 	94.8	% 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Combined ratio excluding catastrophe losses and PPD	  	 	87.2	% 	 	 	88.3	% 	 	 	87.3	% 	 	 	87.7	% 	 	 	88.4	% 	 	 	87.6	% 	 	 	89.9	% 	
Catastrophe reinstatement premiums expensed -
pre-tax	  	$	—  	  	 	$	—  	  	 	$	(1	) 	 	$	—  	  	 	$	(8	) 	 	$	(1	) 	 	$	(8	) 	
Catastrophe losses - pre-tax	  	$	12	  	 	$	21	  	 	$	50	  	 	$	11	  	 	$	334	  	 	$	94	  	 	$	430	  	
Unfavorable (favorable) prior period development
(PPD) - pre-tax (2)	  	$	(28	) 	 	$	(19	) 	 	$	(47	) 	 	$	(40	) 	 	$	8	  	 	$	(134	) 	 	$	(180	) 	
Loss and loss expense ratio excluding catastrophe losses and PPD	  	 	66.3	% 	 	 	66.9	% 	 	 	66.5	% 	 	 	67.6	% 	 	 	66.4	% 	 	 	66.8	% 	 	 	67.4	% 	
% Change versus prior year period	  				 				 				 				 				 				 				
Net premiums written	  	 	11.8	% 	 	 	9.3	% 	 	 	11.8	% 	 	 	9.3	% 	 	 	6.0	% 	 	 	10.6	% 	 	 	9.2	% 	
Net premiums earned	  	 	12.3	% 	 	 	10.6	% 	 	 	12.7	% 	 	 	8.9	% 	 	 	9.0	% 	 	 	11.1	% 	 	 	3.6	% 	
Other ratios	  				 				 				 				 				 				 				
Net premiums written/gross premiums written	  	 	66	% 	 	 	70	% 	 	 	66	% 	 	 	71	% 	 	 	64	% 	 	 	68	% 	 	 	66	% 	
 
(1)	Effective Q1 2013, the company’s Insurance—North American business is presented in two distinct reporting segments: Insurance—North American P&C and Insurance—North American Agriculture. Prior year amounts have been adjusted to conform to the new segment presentation.	
(2)	For Q4 2013 and YTD 2013, favorable prior period development is net of $5 million and $20 million, respectively, of net earned premium adjustments on loss sensitive policies.	

Insurance—North American P&C	  	Page 7	

Table of Contents

	 	ACE Limited
Segment Results—Consecutive Quarters
(in millions of U.S. dollars, except ratios)
(Unaudited)	 		
Insurance—North American Agriculture (1)

   	  	4Q-13	 	 	3Q-13	 	 	2Q-13	 	 	1Q-13	 	 	4Q-12	 	 	Full Year
2013	 	 	Full Year
2012	 	
Gross premiums written	  	$	217	  	 	$	1,446	  	 	$	749	  	 	$	249	  	 	$	292	  	 	$	2,661	  	 	$	2,621	  	
Net premiums written	  	 	256	  	 	 	805	  	 	 	453	  	 	 	113	  	 	 	84	  	 	 	1,627	  	 	 	1,859	  	
Net premiums earned	  	 	426	  	 	 	849	  	 	 	351	  	 	 	52	  	 	 	263	  	 	 	1,678	  	 	 	1,872	  	
Losses and loss expenses (2)	  	 	453	  	 	 	747	  	 	 	293	  	 	 	32	  	 	 	263	  	 	 	1,525	  	 	 	1,911	  	
Policy acquisition costs	  	 	(3	) 	 	 	32	  	 	 	20	  	 	 	4	  	 	 	3	  	 	 	53	  	 	 	28	  	
Administrative expenses	  	 	(2	) 	 	 	5	  	 	 	3	  	 	 	5	  	 	 	(4	) 	 	 	11	  	 	 	(7	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Underwriting income (loss)	  	 	(22	) 	 	 	65	  	 	 	35	  	 	 	11	  	 	 	1	  	 	 	89	  	 	 	(60	) 	
Net investment income	  	 	7	  	 	 	6	  	 	 	7	  	 	 	6	  	 	 	6	  	 	 	26	  	 	 	25	  	
Interest expense	  	 	1	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	1	  	 	 	—  	  	
Other income (expense)—operating	  	 	(8	) 	 	 	(8	) 	 	 	(8	) 	 	 	(8	) 	 	 	(8	) 	 	 	(32	) 	 	 	(32	) 	
Income tax expense (benefit)	  	 	(4	) 	 	 	13	  	 	 	8	  	 	 	2	  	 	 	—  	  	 	 	19	  	 	 	(29	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Operating income (loss)	  	 	(20	) 	 	 	50	  	 	 	26	  	 	 	7	  	 	 	(1	) 	 	 	63	  	 	 	(38	) 	
Net realized gains (losses) (2)	  	 	—  	  	 	 	1	  	 	 	1	  	 	 	—  	  	 	 	—  	  	 	 	2	  	 	 	1	  	
Net realized gains (losses) related to unconsolidated entities	  	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	
Income tax expense on net realized gains (losses)	  	 	—  	  	 	 	1	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	1	  	 	 	—  	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income (loss)	  	$	(20	) 	 	$	50	  	 	$	27	  	 	$	7	  	 	$	(1	) 	 	$	64	  	 	$	(37	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Combined ratio	  				 				 				 				 				 				 				
Loss and loss expense ratio	  	 	106.3	% 	 	 	88.0	% 	 	 	83.4	% 	 	 	61.9	% 	 	 	100.3	% 	 	 	90.9	% 	 	 	102.1	% 	
Policy acquisition cost ratio	  	 	-0.5	% 	 	 	3.8	% 	 	 	5.6	% 	 	 	7.5	% 	 	 	1.2	% 	 	 	3.2	% 	 	 	1.5	% 	
Administrative expense ratio	  	 	-0.6	% 	 	 	0.5	% 	 	 	0.9	% 	 	 	9.9	% 	 	 	-2.0	% 	 	 	0.6	% 	 	 	-0.4	% 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Combined ratio	  	 	105.2	% 	 	 	92.3	% 	 	 	89.9	% 	 	 	79.3	% 	 	 	99.5	% 	 	 	94.7	% 	 	 	103.2	% 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Catastrophe reinstatement premiums - pre-tax	  	$	—  	  	 	$	—  	  	 	$	—  	  	 	$	—  	  	 	$	—  	  	 	$	—  	  	 	$	—  	  	
Catastrophe losses - pre-tax	  	$	2	  	 	$	2	  	 	$	3	  	 	$	—  	  	 	$	4	  	 	$	7	  	 	$	11	  	
Favorable prior period development (PPD) - pre-tax	  	$	—  	  	 	$	(10	) 	 	$	—  	  	 	$	(3	) 	 	$	(1	) 	 	$	(13	) 	 	$	(12	) 	
Loss and loss expense ratio excluding catastrophe losses and PPD	  	 	105.8	% 	 	 	88.9	% 	 	 	82.6	% 	 	 	67.9	% 	 	 	99.3	% 	 	 	91.3	% 	 	 	102.2	% 	
% Change versus prior year period	  				 				 				 				 				 				 				
Net premiums written	  	 	203.6	% 	 	 	-30.8	% 	 	 	-8.0	% 	 	 	-5.1	% 	 	 	-69.0	% 	 	 	-12.5	% 	 	 	-4.7	% 	
Net premiums earned	  	 	62.3	% 	 	 	-27.2	% 	 	 	-8.8	% 	 	 	-11.1	% 	 	 	-38.6	% 	 	 	-10.4	% 	 	 	-3.6	% 	
Other ratios	  				 				 				 				 				 				 				
Net premiums written/gross premiums written	  	 	118	% 	 	 	56	% 	 	 	60	% 	 	 	45	% 	 	 	29	% 	 	 	61	% 	 	 	71	% 	
 
(1)	Effective Q1 2013, the company’s Insurance—North American business is presented in two distinct reporting segments: Insurance—North American P&C and Insurance—North American Agriculture. Prior year amounts have been adjusted to conform to the new segment presentation.	
(2)	Losses from fair value changes on crop derivatives are reclassified from Net realized gains (losses) to Losses and loss expenses for this presentation. Crop derivative losses for YTD 2013 were $1 million.	

			
Insurance—North American Agriculture	  	Page 8	

Table of Contents

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

   	  	4Q-13	 	 	3Q-13	 	 	2Q-13	 	 	1Q-13	 	 	4Q-12	 	 	Full Year
2013	 	 	Full Year
2012	 	
Gross premiums written	  	$	2,126	  	 	$	2,018	  	 	$	2,097	  	 	$	2,073	  	 	$	1,925	  	 	$	8,314	  	 	$	7,702	  	
Net premiums written	  	 	1,699	  	 	 	1,571	  	 	 	1,630	  	 	 	1,620	  	 	 	1,476	  	 	 	6,520	  	 	 	5,863	  	
Net premiums earned	  	 	1,700	  	 	 	1,611	  	 	 	1,563	  	 	 	1,459	  	 	 	1,497	  	 	 	6,333	  	 	 	5,740	  	
Losses and loss expenses	  	 	835	  	 	 	712	  	 	 	768	  	 	 	747	  	 	 	832	  	 	 	3,062	  	 	 	2,862	  	
Policy acquisition costs	  	 	405	  	 	 	349	  	 	 	360	  	 	 	339	  	 	 	357	  	 	 	1,453	  	 	 	1,353	  	
Administrative expenses	  	 	258	  	 	 	263	  	 	 	251	  	 	 	236	  	 	 	239	  	 	 	1,008	  	 	 	935	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Underwriting income	  	 	202	  	 	 	287	  	 	 	184	  	 	 	137	  	 	 	69	  	 	 	810	  	 	 	590	  	
Net investment income	  	 	143	  	 	 	128	  	 	 	136	  	 	 	132	  	 	 	135	  	 	 	539	  	 	 	521	  	
Interest expense	  	 	1	  	 	 	1	  	 	 	2	  	 	 	1	  	 	 	1	  	 	 	5	  	 	 	5	  	
Other income (expense)—operating	  	 	(13	) 	 	 	(16	) 	 	 	(14	) 	 	 	(5	) 	 	 	(1	) 	 	 	(48	) 	 	 	(6	) 	
Income tax expense (benefit)	  	 	52	  	 	 	78	  	 	 	48	  	 	 	24	  	 	 	(44	) 	 	 	202	  	 	 	106	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Operating income	  	 	279	  	 	 	320	  	 	 	256	  	 	 	239	  	 	 	246	  	 	 	1,094	  	 	 	994	  	
Net realized gains (losses)	  	 	(16	) 	 	 	(8	) 	 	 	8	  	 	 	34	  	 	 	44	  	 	 	18	  	 	 	103	  	
Net realized gains (losses) related to unconsolidated entities	  	 	4	  	 	 	2	  	 	 	(3	) 	 	 	6	  	 	 	1	  	 	 	9	  	 	 	3	  	
Income tax expense on net realized gains (losses)	  	 	(4	) 	 	 	—  	  	 	 	2	  	 	 	22	  	 	 	11	  	 	 	20	  	 	 	27	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income	  	$	271	  	 	$	314	  	 	$	259	  	 	$	257	  	 	$	280	  	 	$	1,101	  	 	$	1,073	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Combined ratio	  				 				 				 				 				 				 				
Loss and loss expense ratio	  	 	49.2	% 	 	 	44.2	% 	 	 	49.1	% 	 	 	51.2	% 	 	 	55.5	% 	 	 	48.4	% 	 	 	49.8	% 	
Policy acquisition cost ratio	  	 	23.8	% 	 	 	21.6	% 	 	 	23.0	% 	 	 	23.2	% 	 	 	23.8	% 	 	 	22.9	% 	 	 	23.6	% 	
Administrative expense ratio	  	 	15.1	% 	 	 	16.4	% 	 	 	16.1	% 	 	 	16.2	% 	 	 	16.1	% 	 	 	15.9	% 	 	 	16.3	% 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Combined ratio	  	 	88.1	% 	 	 	82.2	% 	 	 	88.2	% 	 	 	90.6	% 	 	 	95.4	% 	 	 	87.2	% 	 	 	89.7	% 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Combined ratio excluding catastrophe losses and PPD	  	 	91.6	% 	 	 	89.4	% 	 	 	90.5	% 	 	 	90.7	% 	 	 	92.5	% 	 	 	90.5	% 	 	 	92.2	% 	
Catastrophe reinstatement premiums expensed -
pre-tax	  	$	—  	  	 	$	—  	  	 	$	—  	  	 	$	—  	  	 	$	(8	) 	 	$	—  	  	 	$	(8	) 	
Catastrophe losses - pre-tax	  	$	17	  	 	$	33	  	 	$	17	  	 	$	21	  	 	$	65	  	 	$	88	  	 	$	76	  	
Favorable prior period development (PPD) - pre-tax	  	$	(76	) 	 	$	(149	) 	 	$	(52	) 	 	$	(22	) 	 	$	(30	) 	 	$	(299	) 	 	$	(226	) 	
Loss and loss expense ratio excluding catastrophe losses and PPD	  	 	52.6	% 	 	 	51.4	% 	 	 	51.3	% 	 	 	51.3	% 	 	 	52.9	% 	 	 	51.7	% 	 	 	52.4	% 	
% Change versus prior year period	  				 				 				 				 				 				 				
Net premiums written as reported	  	 	15.1	% 	 	 	13.5	% 	 	 	10.5	% 	 	 	6.0	% 	 	 	7.1	% 	 	 	11.2	% 	 	 	4.2	% 	
Net premiums earned as reported	  	 	13.5	% 	 	 	12.5	% 	 	 	10.1	% 	 	 	4.9	% 	 	 	3.2	% 	 	 	10.3	% 	 	 	2.2	% 	
Net premiums written constant $	  	 	18.2	% 	 				 				 				 				 	 	13.7	% 	 				
Net premiums earned constant $	  	 	16.5	% 	 				 				 				 				 	 	12.7	% 	 				
Other ratios	  				 				 				 				 				 				 				
Net premiums written/gross premiums written	  	 	80	% 	 	 	78	% 	 	 	78	% 	 	 	78	% 	 	 	77	% 	 	 	78	% 	 	 	76	% 	

Insurance—Overseas General	  	Page 9	

Table of Contents

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

 	  	4Q-13	 	 	3Q-13	 	 	2Q-13	 	 	1Q-13	 	 	4Q-12	 	 	Full Year
2013	 	 	Full Year
2012	 	
Gross premiums written	  	$	154	  	 	$	264	  	 	$	345	  	 	$	294	  	 	$	149	  	 	$	1,057	  	 	$	1,070	  	
Net premiums written	  	 	155	  	 	 	265	  	 	 	292	  	 	 	279	  	 	 	146	  	 	 	991	  	 	 	1,025	  	
Net premiums earned	  	 	245	  	 	 	239	  	 	 	245	  	 	 	247	  	 	 	254	  	 	 	976	  	 	 	1,002	  	
Losses and loss expenses	  	 	104	  	 	 	93	  	 	 	93	  	 	 	106	  	 	 	198	  	 	 	396	  	 	 	553	  	
Policy acquisition costs	  	 	49	  	 	 	52	  	 	 	48	  	 	 	48	  	 	 	47	  	 	 	197	  	 	 	172	  	
Administrative expenses	  	 	14	  	 	 	12	  	 	 	12	  	 	 	12	  	 	 	13	  	 	 	50	  	 	 	51	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Underwriting income (loss)	  	 	78	  	 	 	82	  	 	 	92	  	 	 	81	  	 	 	(4	) 	 	 	333	  	 	 	226	  	
Net investment income	  	 	71	  	 	 	66	  	 	 	71	  	 	 	72	  	 	 	77	  	 	 	280	  	 	 	290	  	
Interest expense	  	 	1	  	 	 	2	  	 	 	1	  	 	 	1	  	 	 	1	  	 	 	5	  	 	 	4	  	
Other income (expense)—operating	  	 	2	  	 	 	1	  	 	 	1	  	 	 	—  	  	 	 	—  	  	 	 	4	  	 	 	1	  	
Income tax expense (benefit)	  	 	5	  	 	 	16	  	 	 	7	  	 	 	8	  	 	 	(2	) 	 	 	36	  	 	 	14	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Operating income	  	 	145	  	 	 	131	  	 	 	156	  	 	 	144	  	 	 	74	  	 	 	576	  	 	 	499	  	
Net realized gains (losses)	  	 	7	  	 	 	(5	) 	 	 	31	  	 	 	20	  	 	 	12	  	 	 	53	  	 	 	6	  	
Net realized gains (losses) related to unconsolidated entities	  	 	4	  	 	 	6	  	 	 	(3	) 	 	 	8	  	 	 	8	  	 	 	15	  	 	 	14	  	
Income tax expense on net realized gains (losses)	  	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	1	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income	  	$	156	  	 	$	132	  	 	$	184	  	 	$	172	  	 	$	94	  	 	$	644	  	 	$	518	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Combined ratio	  				 				 				 				 				 				 				
Loss and loss expense ratio	  	 	42.5	% 	 	 	38.9	% 	 	 	37.7	% 	 	 	43.0	% 	 	 	78.2	% 	 	 	40.5	% 	 	 	55.2	% 	
Policy acquisition cost ratio	  	 	20.4	% 	 	 	21.7	% 	 	 	19.9	% 	 	 	19.3	% 	 	 	18.3	% 	 	 	20.3	% 	 	 	17.1	% 	
Administrative expense ratio	  	 	5.5	% 	 	 	5.2	% 	 	 	4.6	% 	 	 	5.0	% 	 	 	5.2	% 	 	 	5.1	% 	 	 	5.2	% 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Combined ratio	  	 	68.4	% 	 	 	65.8	% 	 	 	62.2	% 	 	 	67.3	% 	 	 	101.7	% 	 	 	65.9	% 	 	 	77.5	% 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Combined ratio excluding catastrophe losses and PPD	  	 	73.6	% 	 	 	71.0	% 	 	 	70.0	% 	 	 	69.2	% 	 	 	69.9	% 	 	 	70.9	% 	 	 	72.8	% 	
Catastrophe reinstatement premiums collected - pre-tax	  	$	1	  	 	$	2	  	 	$	1	  	 	$	—  	  	 	$	9	  	 	$	4	  	 	$	11	  	
Catastrophe losses - pre-tax	  	$	6	  	 	$	24	  	 	$	11	  	 	$	—  	  	 	$	101	  	 	$	41	  	 	$	116	  	
Favorable prior period development (PPD) - pre-tax (1)	  	$	(18	) 	 	$	(32	) 	 	$	(29	) 	 	$	(5	) 	 	$	(14	) 	 	$	(84	) 	 	$	(61	) 	
Loss and loss expense ratio excluding catastrophe losses and PPD	  	 	47.7	% 	 	 	44.6	% 	 	 	45.3	% 	 	 	44.8	% 	 	 	45.6	% 	 	 	45.6	% 	 	 	50.4	% 	
% Change versus prior year period	  				 				 				 				 				 				 				
Net premiums written as reported	  	 	5.5	% 	 	 	-13.6	% 	 	 	-5.3	% 	 	 	6.1	% 	 	 	12.0	% 	 	 	-3.3	% 	 	 	4.7	% 	
Net premiums earned as reported	  	 	-3.7	% 	 	 	-15.0	% 	 	 	3.6	% 	 	 	7.3	% 	 	 	2.3	% 	 	 	-2.6	% 	 	 	0.0	% 	
Net premiums written constant $	  	 	5.3	% 	 				 				 				 				 	 	-3.3	% 	 				
Net premiums earned constant $	  	 	-3.6	% 	 				 				 				 				 	 	-2.5	% 	 				
Other ratios	  				 				 				 				 				 				 				
Net premiums written/gross premiums written	  	 	101	% 	 	 	100	% 	 	 	85	% 	 	 	95	% 	 	 	99	% 	 	 	94	% 	 	 	96	% 	
 
(1)	For YTD 2013, favorable prior period development is net of $8 million of net earned premium adjustments on loss sensitive policies.	

Global Reinsurance	  	Page 10	

Table of Contents

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

 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Full Year	 	 	Full Year	 	
 	 	4Q-13	 	 	3Q-13	 	 	2Q-13	 	 	1Q-13	 	 	4Q-12	 	 	2013	 	 	2012	 	
Gross premiums written	 	$	526	  	 	$	510	  	 	$	512	  	 	$	528	  	 	$	544	  	 	$	2,076	  	 	$	2,080	  	
Net premiums written	 	 	504	  	 	 	479	  	 	 	487	  	 	 	502	  	 	 	517	  	 	 	1,972	  	 	 	1,979	  	
Net premiums earned	 	 	481	  	 	 	467	  	 	 	480	  	 	 	477	  	 	 	489	  	 	 	1,905	  	 	 	1,916	  	
Losses and loss expenses	 	 	139	  	 	 	141	  	 	 	145	  	 	 	157	  	 	 	148	  	 	 	582	  	 	 	611	  	
Policy benefits (1)	 	 	136	  	 	 	138	  	 	 	110	  	 	 	131	  	 	 	142	  	 	 	515	  	 	 	521	  	
(Gains) losses from fair value changes in separate account assets (1)	 	 	(9	) 	 	 	(14	) 	 	 	11	  	 	 	(4	) 	 	 	(11	) 	 	 	(16	) 	 	 	(29	) 	
Policy acquisition costs	 	 	97	  	 	 	86	  	 	 	95	  	 	 	80	  	 	 	90	  	 	 	358	  	 	 	334	  	
Administrative expenses	 	 	87	  	 	 	85	  	 	 	86	  	 	 	85	  	 	 	91	  	 	 	343	  	 	 	328	  	
Net investment income	 	 	64	  	 	 	61	  	 	 	63	  	 	 	63	  	 	 	65	  	 	 	251	  	 	 	251	  	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Life underwriting income (2)	 	 	95	  	 	 	92	  	 	 	96	  	 	 	91	  	 	 	94	  	 	 	374	  	 	 	402	  	
Interest expense	 	 	3	  	 	 	4	  	 	 	4	  	 	 	4	  	 	 	3	  	 	 	15	  	 	 	12	  	
Other income (expense)—operating (1)	 	 	(4	) 	 	 	(2	) 	 	 	(7	) 	 	 	(5	) 	 	 	(4	) 	 	 	(18	) 	 	 	(12	) 	
Income tax expense	 	 	2	  	 	 	11	  	 	 	9	  	 	 	12	  	 	 	13	  	 	 	34	  	 	 	54	  	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Operating income	 	 	86	  	 	 	75	  	 	 	76	  	 	 	70	  	 	 	74	  	 	 	307	  	 	 	324	  	
Net realized gains (losses):	 				 				 				 				 				 				 				
Mark-to-market on guaranteed living benefits derivative (net of related hedges)	 	 	149	  	 	 	39	  	 	 	33	  	 	 	78	  	 	 	138	  	 	 	299	  	 	 	(126	) 	
Foreign exchange gains (losses) and all other	 	 	5	  	 	 	4	  	 	 	3	  	 	 	49	  	 	 	51	  	 	 	61	  	 	 	54	  	
Net realized gains (losses) related to unconsolidated entities	 	 	(2	) 	 	 	(2	) 	 	 	4	  	 	 	5	  	 	 	(7	) 	 	 	5	  	 	 	(13	) 	
Income tax expense (benefit) on net realized gains (losses)	 	 	(1	) 	 	 	(1	) 	 	 	1	  	 	 	1	  	 	 	1	  	 	 	—  	  	 	 	4	  	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income	 	$	239	  	 	$	117	  	 	$	115	  	 	$	201	  	 	$	255	  	 	$	672	  	 	$	235	  	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
% Change versus prior year period	 				 				 				 				 				 				 				
Net premiums written as reported	 	 	-2.6	% 	 	 	-1.9	% 	 	 	0.2	% 	 	 	3.0	% 	 	 	3.9	% 	 	 	-0.4	% 	 	 	3.4	% 	
Net premiums earned as reported	 	 	-1.5	% 	 	 	-2.7	% 	 	 	0.9	% 	 	 	1.1	% 	 	 	4.2	% 	 	 	-0.6	% 	 	 	3.1	% 	
Net premiums written constant $ (3)	 	 	-1.4	% 	 				 				 				 				 	 	0.2	% 	 				
Net premiums earned constant $	 	 	-0.4	% 	 				 				 				 				 	 	-0.1	% 	 				
 
(1)	(Gains) losses from fair value changes in separate account assets that do not qualify for separate account reporting under GAAP are reclassified from Other income (expense) for purposes of presenting Life underwriting income. The offsetting movement in the separate account liabilities is included in Policy benefits.	
(2)	We assess the performance of our Life business based on Life underwriting income which includes Net investment income and (Gains) losses from fair value changes in separate account assets.	
(3)	Net premiums written and deposits breakdown:	

 	  	 	 	  	 	 	  	Constant $	 	 	 	 	  	 	 	  	Constant $	 	
 	  	 	 	  	 	 	  	% Change	 	 	 	 	  	Constant $	 	  	% Change	 	
 	  	 	 	  	Constant $	 	  	4Q-13 vs.	 	 	Full Year	 	  	Full Year	 	  	2013 vs.	 	
 	  	4Q-13	 	  	4Q-12	 	  	4Q-12	 	 	2013	 	  	2012	 	  	2012	 	
Life excluding life reinsurance (4)	  	$	650	  	  	$	631	  	  	 	3.0	% 	 	$	2,509	  	  	$	2,265	  	  	 	10.8	% 	
Life reinsurance including variable annuity	  	 	68	  	  	 	76	  	  	 	-11.9	% 	 	 	284	  	  	 	314	  	  	 	-9.8	% 	
	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	
Total Life	  	$	718	  	  	$	707	  	  	 	1.4	% 	 	$	2,793	  	  	$	2,579	  	  	 	8.3	% 	

(4)	Includes deposits collected on universal life and investment contracts of $214 million for Q4 2013 and $197 million for Q4 2012 on a constant-dollar basis. For the year, includes deposits of $821 million for 2013 and $611 million for 2012 on a constant-dollar basis. Consistent with GAAP, premiums collected on universal life and investment contracts are considered deposits and excluded from revenues.	

Life	  	Page 11	

Table of Contents

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

 	  	Unpaid Losses	 	 	Net Paid to	 	
 	  	Gross	 	 	Ceded	 	 	Net	 	 	Incurred Ratio	 	
Balance at December 31, 2011	  	$	37,477	  	 	$	11,602	  	 	$	25,875	  	 				
Losses and loss expenses incurred	  	 	2,361	  	 	 	557	  	 	 	1,804	  	 				
Losses and loss expenses paid	  	 	(2,876	) 	 	 	(931	) 	 	 	(1,945	) 	 	 	108	% 	
Other (incl. foreign exch. revaluation)	  	 	285	  	 	 	90	  	 	 	195	  	 				
	  	 	 	 	 	 	 	 	 	 	 	 	 				
Balance at March 31, 2012	  	$	37,247	  	 	$	11,318	  	 	$	25,929	  	 				
Losses and loss expenses incurred	  	 	2,851	  	 	 	732	  	 	 	2,119	  	 				
Losses and loss expenses paid	  	 	(2,916	) 	 	 	(893	) 	 	 	(2,023	) 	 	 	95	% 	
Other (incl. foreign exch. revaluation)	  	 	(332	) 	 	 	(171	) 	 	 	(161	) 	 				
	  	 	 	 	 	 	 	 	 	 	 	 	 				
Balance at June 30, 2012	  	$	36,850	  	 	$	10,986	  	 	$	25,864	  	 				
Losses and loss expenses incurred	  	 	4,073	  	 	 	1,026	  	 	 	3,047	  	 				
Losses and loss expenses paid	  	 	(3,078	) 	 	 	(1,013	) 	 	 	(2,065	) 	 	 	68	% 	
Other (incl. foreign exch. revaluation)	  	 	355	  	 	 	163	  	 	 	192	  	 				
	  	 	 	 	 	 	 	 	 	 	 	 	 				
Balance at September 30, 2012	  	$	38,200	  	 	$	11,162	  	 	$	27,038	  	 				
Losses and loss expenses incurred	  	 	4,642	  	 	 	1,959	  	 	 	2,683	  	 				
Losses and loss expenses paid	  	 	(4,913	) 	 	 	(1,727	) 	 	 	(3,186	) 	 	 	119	% 	
Other (incl. foreign exch. revaluation)	  	 	17	  	 	 	5	  	 	 	12	  	 				
	  	 	 	 	 	 	 	 	 	 	 	 	 				
Balance at December 31, 2012	  	$	37,946	  	 	$	11,399	  	 	$	26,547	  	 				
Losses and loss expenses incurred	  	 	2,483	  	 	 	557	  	 	 	1,926	  	 				
Losses and loss expenses paid	  	 	(2,987	) 	 	 	(932	) 	 	 	(2,055	) 	 	 	107	% 	
Other (incl. foreign exch. revaluation)	  	 	(360	) 	 	 	(106	) 	 	 	(254	) 	 				
	  	 	 	 	 	 	 	 	 	 	 	 	 				
Balance at March 31, 2013	  	$	37,082	  	 	$	10,918	  	 	$	26,164	  	 				
Losses and loss expenses incurred	  	 	3,007	  	 	 	757	  	 	 	2,250	  	 				
Losses and loss expenses paid	  	 	(2,797	) 	 	 	(941	) 	 	 	(1,856	) 	 	 	83	% 	
Other (incl. foreign exch. revaluation)	  	 	51	  	 	 	4	  	 	 	47	  	 				
	  	 	 	 	 	 	 	 	 	 	 	 	 				
Balance at June 30, 2013	  	$	37,343	  	 	$	10,738	  	 	$	26,605	  	 				
Losses and loss expenses incurred	  	 	3,617	  	 	 	962	  	 	 	2,655	  	 				
Losses and loss expenses paid	  	 	(3,285	) 	 	 	(942	) 	 	 	(2,343	) 	 	 	88	% 	
Other (incl. foreign exch. revaluation)	  	 	207	  	 	 	61	  	 	 	146	  	 				
	  	 	 	 	 	 	 	 	 	 	 	 	 				
Balance at September 30, 2013	  	$	37,882	  	 	$	10,819	  	 	$	27,063	  	 				
Losses and loss expenses incurred	  	 	3,322	  	 	 	805	  	 	 	2,517	  	 				
Losses and loss expenses paid	  	 	(3,716	) 	 	 	(993	) 	 	 	(2,723	) 	 	 	108	% 	
Other (incl. foreign exch. revaluation)	  	 	(45	) 	 	 	(19	) 	 	 	(26	) 	 				
	  	 	 	 	 	 	 	 	 	 	 	 	 				
Balance at December 31, 2013	  	$	37,443	  	 	$	10,612	  	 	$	26,831	  	 				
	  	 	 	 	 	 	 	 	 	 	 	 	 				
Add net recoverable on paid losses	  	 	—  	  	 	 	615	  	 	 	(615	) 	 				
	  	 	 	 	 	 	 	 	 	 	 	 	 				
Balance including net recoverable on paid losses	  	$	37,443	  	 	$	11,227	  	 	$	26,216	  	 				

			
Loss Reserve Rollforward	  	Page 12	

Table of Contents

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

 	  	December 31	 	 	September 30	 	 	June 30	 	 	March 31	 	 	December 31	 	
 	  	2013	 	 	2013	 	 	2013	 	 	2013	 	 	2012	 	
Reinsurance recoverable on paid losses and loss expenses	  				 				 				 				 				
Active operations	  	$	376	  	 	$	387	  	 	$	450	  	 	$	409	  	 	$	464	  	
Brandywine and Other Run-off	  	 	356	  	 	 	338	  	 	 	326	  	 	 	284	  	 	 	303	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total	  	$	732	  	 	$	725	  	 	$	776	  	 	$	693	  	 	$	767	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Reinsurance recoverable on unpaid losses and loss expenses	  				 				 				 				 				
Active operations	  	$	9,576	  	 	$	9,843	  	 	$	9,720	  	 	$	9,786	  	 	$	10,199	  	
Brandywine and Other Run-off	  	 	1,309	  	 	 	1,335	  	 	 	1,374	  	 	 	1,484	  	 	 	1,551	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total	  	$	10,885	  	 	$	11,178	  	 	$	11,094	  	 	$	11,270	  	 	$	11,750	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Gross reinsurance recoverable	  				 				 				 				 				
Active operations	  	$	9,952	  	 	$	10,230	  	 	$	10,170	  	 	$	10,195	  	 	$	10,663	  	
Brandywine and Other Run-off	  	 	1,665	  	 	 	1,673	  	 	 	1,700	  	 	 	1,768	  	 	 	1,854	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total	  	$	11,617	  	 	$	11,903	  	 	$	11,870	  	 	$	11,963	  	 	$	12,517	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Provision for uncollectible reinsurance (1)	  				 				 				 				 				
Active operations	  	$	(251	) 	 	$	(286	) 	 	$	(274	) 	 	$	(274	) 	 	$	(277	) 	
Brandywine and Other Run-off	  	 	(139	) 	 	 	(140	) 	 	 	(154	) 	 	 	(159	) 	 	 	(162	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total	  	$	(390	) 	 	$	(426	) 	 	$	(428	) 	 	$	(433	) 	 	$	(439	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net reinsurance recoverable	  				 				 				 				 				
Active operations	  	$	9,701	  	 	$	9,944	  	 	$	9,896	  	 	$	9,921	  	 	$	10,386	  	
Brandywine and Other Run-off	  	 	1,526	  	 	 	1,533	  	 	 	1,546	  	 	 	1,609	  	 	 	1,692	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total	  	$	11,227	  	 	$	11,477	  	 	$	11,442	  	 	$	11,530	  	 	$	12,078	  	

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

Reinsurance Recoverable	  	Page 13	

Table of Contents

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

 	  	December 31	 	 	September 30	 	 	June 30	 	 	March 31	 	 	December 31	 	
 	  	2013	 	 	2013	 	 	2013	 	 	2013	 	 	2012	 	
Market Value	  				 				 				 				 				 				 				 				 				 				
Fixed maturities available for sale	  	$	49,254	  	 				 	$	48,529	  	 				 	$	47,016	  	 				 	$	47,947	  	 				 	$	47,306	  	 				
Fixed maturities held to maturity	  	 	6,263	  	 				 	 	6,493	  	 				 	 	6,762	  	 				 	 	7,213	  	 				 	 	7,633	  	 				
Short-term investments	  	 	1,763	  	 				 	 	1,774	  	 				 	 	2,425	  	 				 	 	2,893	  	 				 	 	2,228	  	 				
	  	 	 	 	 				 	 	 	 	 				 	 	 	 	 				 	 	 	 	 				 	 	 	 	 				
Total fixed maturities	  	$	57,280	  	 				 	$	56,796	  	 				 	$	56,203	  	 				 	$	58,053	  	 				 	$	57,167	  	 				
	  	 	 	 	 				 	 	 	 	 				 	 	 	 	 				 	 	 	 	 				 	 	 	 	 				
Asset Allocation by Market Value	  				 				 				 				 				 				 				 				 				 				
Treasury	  	$	2,327	  	 	 	4	% 	 	$	2,367	  	 	 	4	% 	 	$	2,578	  	 	 	5	% 	 	$	2,750	  	 	 	5	% 	 	$	2,794	  	 	 	5	% 	
Agency	  	 	1,454	  	 	 	3	% 	 	 	1,471	  	 	 	3	% 	 	 	1,586	  	 	 	3	% 	 	 	2,090	  	 	 	4	% 	 	 	2,024	  	 	 	4	% 	
Corporate and asset-backed	  	 	19,475	  	 	 	34	% 	 	 	19,313	  	 	 	34	% 	 	 	18,972	  	 	 	34	% 	 	 	19,123	  	 	 	33	% 	 	 	18,983	  	 	 	33	% 	
Mortgage-backed	  	 	12,273	  	 	 	21	% 	 	 	11,862	  	 	 	21	% 	 	 	11,445	  	 	 	20	% 	 	 	12,064	  	 	 	21	% 	 	 	12,589	  	 	 	22	% 	
Municipal	  	 	4,500	  	 	 	8	% 	 	 	4,496	  	 	 	8	% 	 	 	4,451	  	 	 	8	% 	 	 	4,532	  	 	 	7	% 	 	 	3,872	  	 	 	7	% 	
Non-U.S.	  	 	15,488	  	 	 	27	% 	 	 	15,513	  	 	 	27	% 	 	 	14,746	  	 	 	26	% 	 	 	14,601	  	 	 	25	% 	 	 	14,677	  	 	 	25	% 	
Short-term investments	  	 	1,763	  	 	 	3	% 	 	 	1,774	  	 	 	3	% 	 	 	2,425	  	 	 	4	% 	 	 	2,893	  	 	 	5	% 	 	 	2,228	  	 	 	4	% 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total fixed maturities	  	$	57,280	  	 	 	100	% 	 	$	56,796	  	 	 	100	% 	 	$	56,203	  	 	 	100	% 	 	$	58,053	  	 	 	100	% 	 	$	57,167	  	 	 	100	% 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Credit Quality by Market Value	  				 				 				 				 				 				 				 				 				 				
AAA	  	$	8,677	  	 	 	15	% 	 	$	9,089	  	 	 	16	% 	 	$	9,408	  	 	 	17	% 	 	$	9,948	  	 	 	17	% 	 	$	9,285	  	 	 	16	% 	
AA	  	 	21,520	  	 	 	38	% 	 	 	20,716	  	 	 	36	% 	 	 	20,557	  	 	 	36	% 	 	 	22,036	  	 	 	38	% 	 	 	22,014	  	 	 	39	% 	
A	  	 	11,168	  	 	 	19	% 	 	 	11,267	  	 	 	20	% 	 	 	11,105	  	 	 	20	% 	 	 	11,150	  	 	 	19	% 	 	 	10,760	  	 	 	19	% 	
BBB	  	 	7,193	  	 	 	12	% 	 	 	7,147	  	 	 	13	% 	 	 	6,765	  	 	 	12	% 	 	 	6,596	  	 	 	11	% 	 	 	6,591	  	 	 	12	% 	
BB	  	 	4,418	  	 	 	8	% 	 	 	4,120	  	 	 	7	% 	 	 	3,940	  	 	 	7	% 	 	 	4,010	  	 	 	7	% 	 	 	4,146	  	 	 	7	% 	
B	  	 	3,940	  	 	 	7	% 	 	 	4,088	  	 	 	7	% 	 	 	4,056	  	 	 	7	% 	 	 	3,956	  	 	 	7	% 	 	 	3,846	  	 	 	6	% 	
Other	  	 	364	  	 	 	1	% 	 	 	369	  	 	 	1	% 	 	 	372	  	 	 	1	% 	 	 	357	  	 	 	1	% 	 	 	525	  	 	 	1	% 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total fixed maturities	  	$	57,280	  	 	 	100	% 	 	$	56,796	  	 	 	100	% 	 	$	56,203	  	 	 	100	% 	 	$	58,053	  	 	 	100	% 	 	$	57,167	  	 	 	100	% 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Cost/Amortized Cost	  				 				 				 				 				 				 				 				 				 				
Fixed maturities available for sale	  	$	48,406	  	 				 	$	47,481	  	 				 	$	45,988	  	 				 	$	45,470	  	 				 	$	44,666	  	 				
Fixed maturities held to maturity	  	 	6,098	  	 				 	 	6,306	  	 				 	 	6,576	  	 				 	 	6,867	  	 				 	 	7,270	  	 				
Short-term investments	  	 	1,763	  	 				 	 	1,774	  	 				 	 	2,425	  	 				 	 	2,893	  	 				 	 	2,228	  	 				
	  	 	 	 	 				 	 	 	 	 				 	 	 	 	 				 	 	 	 	 				 	 	 	 	 				
Subtotal fixed maturities	  	 	56,267	  	 				 	 	55,561	  	 				 	 	54,989	  	 				 	 	55,230	  	 				 	 	54,164	  	 				
Equity securities	  	 	841	  	 				 	 	835	  	 				 	 	843	  	 				 	 	781	  	 				 	 	707	  	 				
Other investments	  	 	2,671	  	 				 	 	2,616	  	 				 	 	2,543	  	 				 	 	2,544	  	 				 	 	2,465	  	 				
	  	 	 	 	 				 	 	 	 	 				 	 	 	 	 				 	 	 	 	 				 	 	 	 	 				
Total investment portfolio	  	$	59,779	  	 				 	$	59,012	  	 				 	$	58,375	  	 				 	$	58,555	  	 				 	$	57,336	  	 				
	  	 	 	 	 				 	 	 	 	 				 	 	 	 	 				 	 	 	 	 				 	 	 	 	 				
Avg. duration of fixed maturities	  	 	4.0 years	  	 				 	 	4.0 years	  	 				 	 	4.1 years	  	 				 	 	4.0 years	  	 				 	 	3.9 years	  	 				
Avg. market yield of fixed maturities	  	 	3.0	% 	 				 	 	2.9	% 	 				 	 	2.9	% 	 				 	 	2.3	% 	 				 	 	2.3	% 	 				
Avg. credit quality	  	 	A/Aa	  	 				 	 	A/Aa	  	 				 	 	A/Aa	  	 				 	 	A/Aa	  	 				 	 	A/Aa	  	 				
Avg. yield on invested assets	  	 	3.8	% 	 				 	 	3.6	% 	 				 	 	3.7	% 	 				 	 	3.7	% 	 				 	 	3.8	% 	 				

Investments	  	Page 14	

Table of Contents

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

 	  	S&P Credit Rating	 	
 	  	AAA	 	  	AA	 	  	A	 	  	BBB	 	  	BB and below	 	  	Total	 	
Market Value at December 31, 2013	  				  				  				  				  				  				
Agency residential mortgage-backed (RMBS)	  	$	—  	  	  	$	10,141	  	  	$	—  	  	  	$	—  	  	  	$	—  	  	  	$	10,141	  	
Non-agency RMBS	  	 	56	  	  	 	8	  	  	 	26	  	  	 	15	  	  	 	186	  	  	 	291	  	
Commercial mortgage-backed	  	 	1,811	  	  	 	13	  	  	 	10	  	  	 	7	  	  	 	—  	  	  	 	1,841	  	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total mortgage-backed securities at market value	  	$	1,867	  	  	$	10,162	  	  	$	36	  	  	$	22	  	  	$	186	  	  	$	12,273	  	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
U.S. Corporate and Asset-backed Fixed Income Portfolios

 	  	S&P Credit Rating	 	
 	  	Investment Grade	 	
 	  	AAA	 	  	AA	 	  	A	 	  	BBB	 	  	Total	 	
Market Value at December 31, 2013	  				  				  				  				  				
Asset-backed	  	$	542	  	  	$	91	  	  	$	—  	  	  	$	—  	  	  	$	633	  	
Banks	  	 	—  	  	  	 	—  	  	  	 	2,380	  	  	 	320	  	  	 	2,700	  	
Basic Materials	  	 	—  	  	  	 	—  	  	  	 	94	  	  	 	330	  	  	 	424	  	
Communications	  	 	—  	  	  	 	49	  	  	 	473	  	  	 	773	  	  	 	1,295	  	
Consumer, Cyclical	  	 	—  	  	  	 	97	  	  	 	288	  	  	 	315	  	  	 	700	  	
Consumer, Non-Cyclical	  	 	52	  	  	 	571	  	  	 	867	  	  	 	669	  	  	 	2,159	  	
Diversified Financial Services	  	 	—  	  	  	 	77	  	  	 	223	  	  	 	114	  	  	 	414	  	
Energy	  	 	33	  	  	 	34	  	  	 	192	  	  	 	668	  	  	 	927	  	
Industrial	  	 	—  	  	  	 	355	  	  	 	328	  	  	 	272	  	  	 	955	  	
Utilities	  	 	—  	  	  	 	10	  	  	 	541	  	  	 	480	  	  	 	1,031	  	
All Others	  	 	54	  	  	 	134	  	  	 	566	  	  	 	549	  	  	 	1,303	  	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total	  	$	681	  	  	$	1,418	  	  	$	5,952	  	  	$	4,490	  	  	$	12,541	  	

																	
 	  	S&P Credit Rating	 	
 	  	Below Investment Grade	 	
 	  	BB	 	  	B	 	  	CCC	 	  	Total	 	
Market Value at December 31, 2013	  				  				  				  				
Asset-backed	  	$	—  	  	  	$	4	  	  	$	17	  	  	$	21	  	
Banks	  	 	1	  	  	 	4	  	  	 	—  	  	  	 	5	  	
Basic Materials	  	 	169	  	  	 	136	  	  	 	10	  	  	 	315	  	
Communications	  	 	557	  	  	 	439	  	  	 	15	  	  	 	1,011	  	
Consumer, Cyclical	  	 	485	  	  	 	619	  	  	 	14	  	  	 	1,118	  	
Consumer, Non-Cyclical	  	 	545	  	  	 	873	  	  	 	37	  	  	 	1,455	  	
Diversified Financial Services	  	 	134	  	  	 	72	  	  	 	—  	  	  	 	206	  	
Energy	  	 	730	  	  	 	334	  	  	 	34	  	  	 	1,098	  	
Industrial	  	 	345	  	  	 	405	  	  	 	30	  	  	 	780	  	
Utilities	  	 	277	  	  	 	22	  	  	 	—  	  	  	 	299	  	
All Others	  	 	228	  	  	 	385	  	  	 	13	  	  	 	626	  	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total	  	$	3,471	  	  	$	3,293	  	  	$	170	  	  	$	6,934	  	

 
			
Investments 2	  	Page 15	

Table of Contents

	 	ACE Limited
Investment Portfolio—3
(in millions of U.S. dollars)
(Unaudited)	 		
Non-U.S. Fixed Income Portfolio
December 31, 2013

Non-U.S. Government Securities	  	Market Value by S&P Credit Rating	 	
 	  	AAA	 	  	AA	 	  	A	 	  	BBB	 	  	BB and below	 	  	Total	 	
United Kingdom	  	$	1,225	  	  	$	—  	  	  	$	—  	  	  	$	—  	  	  	$	—  	  	  	$	1,225	  	
Republic of Korea	  	 	—  	  	  	 	633	  	  	 	44	  	  	 	—  	  	  	 	—  	  	  	 	677	  	
Canada	  	 	566	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	566	  	
United Mexican States	  	 	—  	  	  	 	1	  	  	 	363	  	  	 	108	  	  	 	—  	  	  	 	472	  	
Germany	  	 	352	  	  	 	4	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	356	  	
Province of Ontario	  	 	—  	  	  	 	337	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	337	  	
Japan	  	 	—  	  	  	 	289	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	289	  	
Federative Republic of Brazil	  	 	—  	  	  	 	—  	  	  	 	201	  	  	 	58	  	  	 	—  	  	  	 	259	  	
Kingdom of Thailand	  	 	—  	  	  	 	—  	  	  	 	194	  	  	 	58	  	  	 	—  	  	  	 	252	  	
Province of Quebec	  	 	—  	  	  	 	—  	  	  	 	252	  	  	 	—  	  	  	 	—  	  	  	 	252	  	
Other Non-U.S. Government Securities	  	 	706	  	  	 	1,102	  	  	 	223	  	  	 	252	  	  	 	287	  	  	 	2,570	  	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total	  	$	2,849	  	  	$	2,366	  	  	$	1,277	  	  	$	476	  	  	$	287	  	  	$	7,255	  	

Non-U.S. Corporate Securities	  	Market Value by S&P Credit Rating	 	
 	  	AAA	 	  	AA	 	  	A	 	  	BBB	 	  	BB and below	 	  	Total	 	
United Kingdom	  	$	96	  	  	$	67	  	  	$	769	  	  	$	346	  	  	$	196	  	  	$	1,474	  	
Canada	  	 	158	  	  	 	124	  	  	 	300	  	  	 	374	  	  	 	167	  	  	 	1,123	  	
Australia	  	 	88	  	  	 	89	  	  	 	304	  	  	 	115	  	  	 	75	  	  	 	671	  	
United States	  	 	7	  	  	 	130	  	  	 	102	  	  	 	214	  	  	 	140	  	  	 	593	  	
France	  	 	71	  	  	 	61	  	  	 	197	  	  	 	129	  	  	 	75	  	  	 	533	  	
Netherlands	  	 	18	  	  	 	258	  	  	 	102	  	  	 	86	  	  	 	24	  	  	 	488	  	
Germany	  	 	155	  	  	 	40	  	  	 	131	  	  	 	100	  	  	 	58	  	  	 	484	  	
Euro Supranational	  	 	186	  	  	 	50	  	  	 	—  	  	  	 	1	  	  	 	—  	  	  	 	237	  	
Switzerland	  	 	2	  	  	 	22	  	  	 	54	  	  	 	113	  	  	 	39	  	  	 	230	  	
Sweden	  	 	58	  	  	 	109	  	  	 	44	  	  	 	3	  	  	 	4	  	  	 	218	  	
Other Non-U.S. Corporate Securities	  	 	95	  	  	 	260	  	  	 	736	  	  	 	679	  	  	 	412	  	  	 	2,182	  	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total	  	$	934	  	  	$	1,210	  	  	$	2,739	  	  	$	2,160	  	  	$	1,190	  	  	$	8,233	  	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Non-U.S. Corporate Investment Portfolio
Countries represent the ultimate parent company’s country of risk. Non-U.S. corporate securities could be issued by foreign subsidiaries of U.S. corporations.

Investments 3	  	Page 16	

Table of Contents

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

 	 	December 31, 2013	  	Market
Value	 	  	Rating	
1	 	JP Morgan Chase & Co	  	$	504	  	  	A	
2	 	Goldman Sachs Group Inc	  	 	444	  	  	A-	
3	 	General Electric Co	  	 	414	  	  	AA+	
4	 	Wells Fargo & Co	  	 	283	  	  	A+	
5	 	Citigroup Inc	  	 	278	  	  	A-	
6	 	Morgan Stanley	  	 	274	  	  	A-	
7	 	Verizon Communications Inc	  	 	263	  	  	BBB+	
8	 	Bank of America Corp	  	 	258	  	  	A-	
9	 	HSBC Holdings Plc	  	 	224	  	  	A+	
10	 	AT&T INC	  	 	198	  	  	A-	

Investments 4	  	Page 17	

Table of Contents

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

 	  	Three months ended December 31, 2013	 	 	Year ended December 31, 2013	 	
 	  	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	  	 	$	(219	) 	 	$	(213	) 	 	$	90	  	 	$	(1,880	) 	 	$	(1,790	) 	
Fixed income derivatives	  	 	16	  	 	 	—  	  	 	 	16	  	 	 	78	  	 	 	—  	  	 	 	78	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total fixed maturities	  	 	22	 	 	 	(219	)	 	 	(197	) 	 	 	168	 	 	 	(1,880	)	 	 	(1,712	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Public equity	  	 	2	  	 	 	—  	  	 	 	2	  	 	 	15	  	 	 	(41	) 	 	 	(26	) 	
Private equity	  	 	27	  	 	 	17	  	 	 	44	  	 	 	90	  	 	 	51	  	 	 	141	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total equity	  	 	29	 	 	 	17	 	 	 	46	  	 	 	105	 	 	 	10	 	 	 	115	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Mark-to-market gains from derivative transactions (2)	  	 	149	  	 	 	—  	  	 	 	149	  	 	 	298	  	 	 	—  	  	 	 	298	  	
Foreign exchange gains (losses) (2)	  	 	(16	) 	 	 	—  	  	 	 	(16	) 	 	 	29	  	 	 	—  	  	 	 	29	  	
Other	  	 	(3	) 	 	 	2	  	 	 	(1	) 	 	 	(3	) 	 	 	3	  	 	 	—  	  	
Partially-owned entities (3)	  	 	(2	) 	 	 	—  	  	 	 	(2	) 	 	 	—  	  	 	 	—  	  	 	 	—  	  	
Income tax expense (benefit)	  	 	5	  	 	 	(55	) 	 	 	(50	) 	 	 	56	  	 	 	(408	)	 	 	(352	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net gains (losses)	  	$	174	 	 	$	(145	)	 	$	29	  	 	$	541	 	 	$	(1,459	)	 	$	(918	) 	

(1)	Other-than-temporary impairments for the quarter includes $7 million for fixed maturities and $1 million for public equity. Year to date other-than-temporary impairments includes $18 million of fixed maturities, $2 million for private equity, and $2 million for public equity.	
(2)	Includes $149 million of realized gains from variable annuity reinsurance for the quarter which comprises $315 million in mark-to-market gains from derivative transactions (including a $92 million realized gain related to an out-of-period adjustment for an error in a market valuation model), net of $166 million of losses on applicable hedges. The variable annuity reinsurance foreign exchange gains for the quarter were $6 million. For the year, mark-to-market gains from derivative transactions of $298 million includes $299 million of realized gains from variable annuity reinsurance which comprises $878 million in mark-to-market gains from derivative transactions, net of $579 million of losses on applicable hedges. The variable annuity reinsurance foreign exchange gains for the year were $51 million.	
(3)	Partially-owned entities are investments where we hold more than an insignificant percentage of the investee’s shares. The net income or loss is included in other income (expense).	

 	  	Three months ended December 31, 2012	 	 	Year ended December 31, 2012	 	
 	  	Net Realized
Gains
(Losses) (4)	 	 	Net  Unrealized
Gains
(Losses)	 	 	Net
Impact	 	 	Net Realized
Gains
(Losses) (4)	 	 	Net  Unrealized
Gains
(Losses)	 	 	Net
Impact	 	
Fixed maturities	  	$	81	  	 	$	(131	) 	 	$	(50	) 	 	$	230	  	 	$	1,005	  	 	$	1,235	  	
Fixed income derivatives	  	 	(3	) 	 	 	—  	  	 	 	(3	) 	 	 	(6	) 	 	 	—  	  	 	 	(6	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total fixed maturities	  	 	78	 	 	 	(131	)	 	 	(53	) 	 	 	224	 	 	 	1,005	 	 	 	1,229	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Public equity	  	 	6	  	 	 	9	  	 	 	15	  	 	 	4	  	 	 	61	  	 	 	65	  	
Private equity	  	 	36	  	 	 	16	  	 	 	52	  	 	 	79	  	 	 	49	  	 	 	128	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total equity	  	 	42	 	 	 	25	 	 	 	67	  	 	 	83	 	 	 	110	 	 	 	193	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Mark-to-market (losses) from derivative transactions (5)	  	 	138	  	 	 	—  	  	 	 	138	  	 	 	(130	) 	 	 	—  	  	 	 	(130	) 	
Foreign exchange gains (losses) (5)	  	 	48	  	 	 	—  	  	 	 	48	  	 	 	(16	) 	 	 	—  	  	 	 	(16	) 	
Other	  	 	2	  	 	 	—  	  	 	 	2	  	 	 	3	  	 	 	5	  	 	 	8	  	
Partially-owned entities (6)	  	 	(13	) 	 	 	—  	  	 	 	(13	) 	 	 	(24	) 	 	 	(4	) 	 	 	(28	) 	
Income tax expense (benefit)	  	 	22	  	 	 	(36	) 	 	 	(14	) 	 	 	58	  	 	 	198	 	 	 	256	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net gains (losses)	  	$	273	 	 	$	(70	)	 	$	203	  	 	$	82	 	 	$	918	 	 	$	1,000	  	

(4)	Other-than-temporary impairments for the quarter includes $7 million for fixed maturities. Year to date other-than-temporary impairments includes $25 million of fixed maturities, $7 million for private equity, and $5 million for public equity.	
(5)	Includes $138 million of realized gains from variable annuity reinsurance for the quarter which comprises $127 million in mark-to-market gains from derivative transactions and $11 million of gains on applicable hedges. The variable annuity reinsurance foreign exchange gains for the quarter were $35 million. For the year, mark-to-market losses from derivative transactions of $130 million includes $126 million of realized losses from variable annuity reinsurance which comprises $171 million in mark-to-market gains from derivative transactions, net of $297 million of losses on applicable hedges. The variable annuity reinsurance foreign exchange gains for the year were $33 million.	
(6)	Partially-owned entities are investments where we hold more than an insignificant percentage of the investee’s shares. The net income or loss is included in other income (expense).	

Investment Gains (Losses)	  	Page 18	

Table of Contents

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

 	  	December 31
2013	 	 	September 30
2013	 	 	June 30
2013	 	 	March 31
2013	 	 	December 31
2012	 	 	December 31
2011	 	
Total short-term debt (1)	  	$	1,901	  	 	$	1,902	  	 	$	1,901	  	 	$	1,402	  	 	$	1,401	  	 	$	1,251	  	
Total long-term debt	  	 	3,807	  	 	 	3,807	  	 	 	3,807	  	 	 	4,307	  	 	 	3,360	  	 	 	3,360	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total debt	  	$	5,708	  	 	$	5,709	  	 	$	5,708	  	 	$	5,709	  	 	$	4,761	  	 	$	4,611	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total trust preferred securities	  	$	309	  	 	$	309	  	 	$	309	  	 	$	309	  	 	$	309	  	 	$	309	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total shareholders’ equity	  	$	28,825	  	 	$	28,218	  	 	$	27,295	  	 	$	27,942	  	 	$	27,531	  	 	$	24,332	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total capitalization	  	$	34,842	  	 	$	34,236	  	 	$	33,312	  	 	$	33,960	  	 	$	32,601	  	 	$	29,252	  	
Tangible capital (2)	  	$	29,438	  	 	$	28,771	  	 	$	27,917	  	 	$	29,051	  	 	$	27,626	  	 	$	24,453	  	
Leverage ratios	  				 				 				 				 				 				
Debt/ total capitalization	  	 	16.4	% 	 	 	16.7	% 	 	 	17.1	% 	 	 	16.8	% 	 	 	14.6	% 	 	 	15.8	% 	
Debt plus trust preferred securities/ total capitalization	  	 	17.3	% 	 	 	17.6	% 	 	 	18.1	% 	 	 	17.7	% 	 	 	15.6	% 	 	 	16.8	% 	
Debt/ tangible capital	  	 	19.4	% 	 	 	19.8	% 	 	 	20.4	% 	 	 	19.7	% 	 	 	17.2	% 	 	 	18.9	% 	
Debt plus trust preferred securities/ tangible capital	  	 	20.4	% 	 	 	20.9	% 	 	 	21.6	% 	 	 	20.7	% 	 	 	18.4	% 	 	 	20.1	% 	
Note: As of December 31, 2013, there was $1.2 billion usage of credit facilities on a total commitment of $1.9 billion.
 
(1)	Repurchase agreements in the amount of $851 million matured during the quarter, and there were new repurchase agreements in the amount of $850 million.	
(2)	Tangible capital is equal to total capitalization less goodwill and other intangible assets.	

Capital Structure	  	Page 19	

Table of Contents

	 	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 December 31	 	 	Year ended December 31	 	
 	 	2013	 	 	2012	 	 	2013	 	 	2012	 	
Numerator	 				 				 				 				
Operating income to common shares	 	$	824	  	 	$	492	  	 	$	3,217	  	 	$	2,624	  	
Net realized gains (losses), net of income tax	 	 	174	  	 	 	273	  	 	 	541	  	 	 	82	  	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income	 	$	998	  	 	$	765	  	 	$	3,758	  	 	$	2,706	  	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Rollforward of Common Shares Outstanding	 				 				 				 				
Shares—beginning of period	 	 	340,069,972	  	 	 	339,735,109	  	 	 	340,321,534	  	 	 	336,927,276	  	
Repurchase of shares (1)	 	 	(564,911	) 	 	 	—  	  	 	 	(3,266,531	) 	 	 	(100,000	) 	
Shares issued, excluding option exercises	 	 	12,988	  	 	 	55,188	  	 	 	1,080,261	  	 	 	1,092,389	  	
Issued for option exercises	 	 	275,886	  	 	 	531,237	  	 	 	1,658,671	  	 	 	2,401,869	  	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Shares—end of period	 	 	339,793,935	  	 	 	340,321,534	  	 	 	339,793,935	  	 	 	340,321,534	  	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Denominator	 				 				 				 				
Weighted average shares outstanding	 	 	340,897,890	  	 	 	340,821,273	  	 	 	340,906,490	  	 	 	339,843,438	  	
Effect of other dilutive securities	 	 	3,309,307	  	 	 	2,920,626	  	 	 	3,241,085	  	 	 	2,903,512	  	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Adj. wtd. avg. shares outstanding and assumed conversions	 	 	344,207,197	  	 	 	343,741,899	  	 	 	344,147,575	  	 	 	342,746,950	  	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Basic earnings per share	 				 				 				 				
Operating income	 	$	2.41	  	 	$	1.44	  	 	$	9.43	  	 	$	7.72	  	
Net realized gains (losses), net of income tax	 	 	0.52	  	 	 	0.80	  	 	 	1.59	  	 	 	0.24	  	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income	 	$	2.93	  	 	$	2.24	  	 	$	11.02	  	 	$	7.96	  	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Diluted earnings per share	 				 				 				 				
Operating income	 	$	2.39	  	 	$	1.43	  	 	$	9.35	  	 	$	7.65	  	
Net realized gains (losses), net of income tax	 	 	0.51	  	 	 	0.79	  	 	 	1.57	  	 	 	0.24	  	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income	 	$	2.90	  	 	$	2.22	  	 	$	10.92	  	 	$	7.89	  	

(1)	For the period January 1, 2014 through January 27, 2014 we repurchased 1 million shares totaling $97 million, pursuant to a plan adopted under SEC Rule 10b5-1 and in accordance with the provisions of SEC Rule 10b-18.	

Earnings per share	  	Page 20	

Table of Contents

	 	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 and financial condition. However, they should not be viewed as a substitute for measures determined in accordance with generally accepted accounting principles (GAAP).
Operating income, P&C underwriting income, adjusted losses and loss expenses, adjusted realized gains (losses), operating ROE, P&C combined ratio, and P&C combined ratio excluding catastrophe losses and prior period development (PPD) are non-GAAP financial measures and include realized gains and losses associated with fair value changes on our crop derivatives. These derivatives were purchased to provide economic benefit, in a manner similar to reinsurance protection, in the event that a significant decline in commodity pricing will impact underwriting results. As such, we view changes in the fair value of these derivatives as part of the results of our operations and therefore realized gains and losses from these derivatives are reclassified to losses and loss expenses. Pre-tax losses from fair value changes in these derivatives were $1 million for YTD 2013.
Global P&C net premiums written is a non-GAAP financial measure and is defined as consolidated net premiums written excluding net premiums written of the company’s Life and Insurance – North American Agriculture segments. We believe that this measure is useful and meaningful to investors as it is used by management to assess the company’s global P&C operations which are the most economically similar. We exclude the Insurance – North American Agriculture and Life segments because the results of these businesses do not always correlate with the results of our global P&C operations.
Other income (expense) – operating is a non-GAAP financial measure and excludes the portion of net realized gains and losses related to unconsolidated entities from other income (expense). These gains and losses are reported within Net realized gains (losses) and represent the non-operating activities of entities where we hold more than an insignificant percentage of the investee’s shares. We exclude these gains and losses from other income (expense) to enhance the understanding of our core results of operations as they are heavily influenced by, and fluctuate in part according to market conditions.
In presenting our segment operating results, we have shown our performance with reference to underwriting results. Underwriting results are calculated by subtracting losses and loss expenses, policy benefits, policy acquisition costs, and administrative expenses from net premiums earned. We use underwriting results and operating ratios to monitor the results of our operations without the impact of certain factors, including investment income, other income and expenses, interest and income tax expense, and net realized gains (losses). Life underwriting income includes net investment income and gains (losses) from fair value changes in separate account assets that do not qualify for separate account reporting under GAAP.
We provide financial measures such as gross premiums written, net premiums written, net premiums earned, and operating income on a constant-dollar basis. We believe it is useful to evaluate the trends in these measures exclusive of the effect of fluctuations in exchange rates between the U.S. dollar and the currencies in which our international business is transacted, as these exchange rates could fluctuate significantly between periods and distort the analysis of trends. The impact is determined by assuming constant foreign exchange rates between periods by translating prior period results using the same local currency exchange rates as the comparable current period.
P&C expense ratio excluding A&H is a non-GAAP financial measure and excludes the impact of our A&H business from our consolidated expense ratio. The expense ratio for the A&H business is typically higher than our traditional P&C business, and we believe that this measure provides better comparison to our peer companies that may not have a significant A&H block of business.
Loss and loss expense ratio excluding the impact of catastrophe losses and PPD is a non-GAAP financial measure. The loss ratio numerator includes Losses and loss expenses adjusted to exclude catastrophe losses and PPD. The loss ratio denominator includes Net premiums earned adjusted to exclude the amount of reinstatement premiums (expensed) collected. In periods where there are adjustments on loss sensitive policies, these adjustments are excluded from PPD and net earned premiums when calculating this ratio. We believe that excluding the impact of catastrophe losses and PPD provides a better evaluation of our core underwriting performance and enhances the understanding of the trends in our property & casualty business that may be obscured by these items.
Combined ratio excluding catastrophe losses and PPD is a non-GAAP financial measure. The ratio numerator includes losses and loss expenses, policy acquisition costs, and administrative expenses adjusted to exclude catastrophe losses and PPD. The ratio denominator includes net premiums earned adjusted to exclude the amount of reinstatement premiums (expensed) collected and net earned premium adjustments on loss sensitive policies. We believe that excluding the impact of catastrophe losses and PPD provides a better evaluation of our core underwriting performance and enhances the understanding of the trends in our property & casualty business that may be obscured by these items.
Life net premiums written and deposits collected, excluding life reinsurance, is a non-GAAP financial measure. Deposits collected on universal life and investment contracts (life deposits) are properly not reflected as revenues in our consolidated statements of operations in accordance with GAAP. However, we include life deposits in presenting growth in our Life business because new life deposits are an important component of production and key to our efforts to grow our business. However, we exclude results associated with life reinsurance as there is no new life reinsurance business currently being written.
Operating income or income excluding net realized gains (losses), net of tax, is a common performance measurement for insurance companies and non-GAAP financial measure. We believe this presentation enhances the understanding of our results of operations by highlighting the underlying profitability of our insurance business. We exclude net realized gains (losses) and net realized gains (losses) included in other income (expense) related to partially owned entities because the amount of these gains (losses) is heavily influenced by, and fluctuates in part according to, the availability of market opportunities. Operating income or income excluding net realized gains (losses) should not be viewed as a substitute for net income determined in accordance with GAAP.
Book value excluding unrealized gains (losses) on investments, or Adjusted shareholders’ equity, is a non-GAAP financial measure and is shareholders’ equity excluding unrealized gains (losses) on investments, net of tax. We believe this measure is useful as it removes the effect of changing prices on invested assets which is heavily influenced by market conditions.
Operating return on equity (ROE) or ROE calculated using income excluding net realized gains (losses) is an annualized non-GAAP financial measure and is calculated as operating income divided by average shareholders’ equity, as adjusted, for the period. To annualize a quarterly rate, multiply by four. Operating ROE is a useful measure as it enhances the understanding of the return on shareholders’ equity by highlighting the underlying profitability relative to shareholders’ equity excluding the effect of unrealized gains and losses on our investments.
Operating effective tax rate is a non-GAAP financial measure. The numerator excludes tax on net realized gains (losses). The denominator excludes net realized gains (losses), before tax. We exclude net realized gains (losses) and the related tax impact because these amounts are heavily influenced by, and fluctuate in part according to, the availability of market opportunities. Operating effective tax rate should not be viewed as a substitute for effective tax rate determined in accordance with GAAP.
Tangible book value per common share is shareholders’ equity less goodwill and other intangible assets divided by the shares outstanding. We believe that goodwill and other intangible assets are not indicative of our underlying insurance results or trends and make book value comparisons to less acquisitive peer companies less meaningful. A reconciliation of tangible book value per share is provided on page 23. Tangible book value per common share excluding 2013 acquisitions is shareholders’ equity less goodwill and other intangible assets divided by the shares outstanding. The numerator adds back the goodwill and other intangible assets related to the 2013 acquisitions of Fianzas Monterrey and ABA Seguros in order to adjust for the distortive effect of acquisitions.

			
Reconciliation Non-GAAP	  	Page 21	

Table of Contents

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

 	  	4Q-13	 	 	3Q-13	 	 	2Q-13	 	 	1Q-13	 	 	4Q-12	 	 	Full Year
2013	 	 	Full Year
2012	 	
Net income, as reported	  	$	998	  	 	$	916	  	 	$	891	  	 	$	953	  	 	$	765	  	 	$	3,758	  	 	$	2,706	  	
Adjusted net realized gains (losses)	  	 	154	  	 	 	41	  	 	 	104	  	 	 	206	  	 	 	272	  	 	 	505	  	 	 	78	  	
Net realized gains (losses) related to unconsolidated entities (1)	  	 	25	  	 	 	22	  	 	 	12	  	 	 	33	  	 	 	23	  	 	 	92	  	 	 	62	  	
Income tax expense on net realized gains (losses)	  	 	5	  	 	 	4	  	 	 	15	  	 	 	32	  	 	 	22	  	 	 	56	  	 	 	58	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Operating income	  	$	824	  	 	$	857	  	 	$	790	  	 	$	746	  	 	$	492	  	 	$	3,217	  	 	$	2,624	  	

(1)    Realized gains (losses) on partially-owned entities, which are investments where we hold more than an insignificant percentage of the investee’s shares. The net income or loss is included in other income (expense).	        	
	
The following table presents the reconciliation of effective tax rate to the operating effective tax rate:	  	
								
 	  	4Q-13	 	 	3Q-13	 	 	2Q-13	 	 	1Q-13	 	 	4Q-12	 	 	Full Year
2013	 	 	Full Year
2012	 	
Tax expense (benefit), as reported	  	$	88	  	 	$	155	  	 	$	115	  	 	$	122	  	 	$	(135	) 	 	$	480	  	 	$	270	  	
Tax expense on net realized gains (losses)	  	 	5	  	 	 	4	  	 	 	15	  	 	 	32	  	 	 	22	  	 	 	56	  	 	 	58	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Tax expense (benefit), adjusted	  	$	83	  	 	$	151	  	 	$	100	  	 	$	90	  	 	$	(157	) 	 	$	424	  	 	$	212	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income before tax, as reported	  	$	1,086	  	 	$	1,071	  	 	$	1,006	  	 	$	1,075	  	 	$	630	  	 	$	4,238	  	 	$	2,976	  	
Less: realized gains (losses)	  	 	154	  	 	 	41	  	 	 	104	  	 	 	206	  	 	 	272	  	 	 	505	  	 	 	78	  	
Less: realized gains (losses) related to unconsolidated entities	  	 	25	  	 	 	22	  	 	 	12	  	 	 	33	  	 	 	23	  	 	 	92	  	 	 	62	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Operating income before tax	  	$	907	  	 	$	1,008	  	 	$	890	  	 	$	836	  	 	$	335	  	 	$	3,641	  	 	$	2,836	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Effective tax rate	  	 	8.1	% 	 	 	14.4	% 	 	 	11.5	% 	 	 	11.3	% 	 	 	-21.4	% 	 	 	11.3	% 	 	 	9.1	% 	
Adjustment for tax impact of net realized gains (losses)	  	 	1.1	% 	 	 	0.5	% 	 	 	-0.3	% 	 	 	-0.5	% 	 	 	-25.4	% 	 	 	0.3	% 	 	 	-1.6	% 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Operating effective tax rate	  	 	9.2	% 	 	 	14.9	% 	 	 	11.2	% 	 	 	10.8	% 	 	 	-46.8	% 	 	 	11.6	% 	 	 	7.5	% 	

The following table presents the reconciliation of ROE to Operating ROE:	  	
 	  	4Q-13	 	 	 	 	 	 	 	 	 	 	 	4Q-12	 	 	Full Year
2013	 	 	Full Year
2012	 	
Net income	  	$	998	  	 				 				 				 	$	765	  	 	$	3,758	  	 	$	2,706	  	
Operating income	  	$	824	  	 				 				 				 	$	492	  	 	$	3,217	  	 	$	2,624	  	
Equity—beginning of period, as reported	  	$	28,218	  	 				 				 				 	$	26,963	  	 	$	27,531	  	 	$	24,332	  	
Less: unrealized gains (losses) on investments, net of deferred tax	  	 	1,319	  	 				 				 				 	 	2,703	  	 	 	2,633	  	 	 	1,715	  	
	  	 	 	 	 				 				 				 	 	 	 	 	 	 	 	 	 	 	 	
Equity—beginning of period, as adjusted	  	$	26,899	  	 				 				 				 	$	24,260	  	 	$	24,898	  	 	$	22,617	  	
	  	 	 	 	 				 				 				 	 	 	 	 	 	 	 	 	 	 	 	
Equity—end of period, as reported	  	$	28,825	  	 				 				 				 	$	27,531	  	 	$	28,825	  	 	$	27,531	  	
Less: unrealized gains (losses) on investments, net of deferred tax	  	 	1,174	  	 				 				 				 	 	2,633	  	 	 	1,174	  	 	 	2,633	  	
	  	 	 	 	 				 				 				 	 	 	 	 	 	 	 	 	 	 	 	
Equity—end of period, as adjusted	  	$	27,651	  	 				 				 				 	$	24,898	  	 	$	27,651	  	 	$	24,898	  	
	  	 	 	 	 				 				 				 	 	 	 	 	 	 	 	 	 	 	 	
Average equity, as reported	  	$	28,522	  	 				 				 				 	$	27,247	  	 	$	28,178	  	 	$	25,932	  	
Average equity, as adjusted	  	$	27,275	  	 				 				 				 	$	24,579	  	 	$	26,275	  	 	$	23,758	  	
Operating ROE	  	 	12.1	% 	 				 				 				 	 	8.0	% 	 	 	12.2	% 	 	 	11.0	% 	
ROE	  	 	14.0	% 	 				 				 				 	 	11.2	% 	 	 	13.3	% 	 	 	10.4	% 	

Reconciliation Non-GAAP 2	  	Page 22	

Table of Contents

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

 	 	December 31
2013	 	 	September 30
2013	 	 	June 30
2013	 	 	March 31
2013	 	 	December 31
2012	 	
Shareholders’ equity	 	$	28,825	  	 	$	28,218	  	 	$	27,295	  	 	$	27,942	  	 	$	27,531	  	
Less: goodwill and other intangible assets	 	 	5,404	  	 	 	5,465	  	 	 	5,395	  	 	 	4,909	  	 	 	4,975	  	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Numerator for tangible book value per share	 	$	23,421	  	 	$	22,753	  	 	$	21,900	  	 	$	23,033	  	 	$	22,556	  	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Book value—% change over prior quarter (1)	 	 	2.2	% 	 	 	3.4	% 	 	 	-2.3	% 	 	 	1.5	% 	 	 	2.1	% 	
Tangible book value—% change over prior quarter (1)	 	 	2.9	% 	 	 	3.9	% 	 	 	-4.9	% 	 	 	2.1	% 	 	 	2.7	% 	
Denominator	 	 	339,793,935	  	 	 	340,069,972	  	 	 	340,086,269	  	 	 	340,045,256	  	 	 	340,321,534	  	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Book value per common share	 	$	84.83	  	 	$	82.98	  	 	$	80.26	  	 	$	82.17	  	 	$	80.90	  	
Tangible book value per common share	 	$	68.93	  	 	$	66.91	  	 	$	64.40	  	 	$	67.74	  	 	$	66.28	  	
Reconciliation of Book Value	 				 				 				 				 				
Shareholders’ equity, beginning of quarter	 	$	28,218	  	 	$	27,295	  	 	$	27,942	  	 	$	27,531	  	 	$	26,963	  	
Operating income	 	 	824	  	 	 	857	  	 	 	790	  	 	 	746	  	 	 	492	  	
Net realized gains (losses), net of tax	 	 	174	  	 	 	59	  	 	 	101	  	 	 	207	  	 	 	273	  	
Net unrealized gains (losses), net of tax	 	 	(145	) 	 	 	1	  	 	 	(1,220	) 	 	 	(95	) 	 	 	(70	) 	
Repurchase of shares	 	 	(57	) 	 	 	(21	) 	 	 	(58	) 	 	 	(154	) 	 	 	—  	  	
Dividend declared on common shares	 	 	(174	) 	 	 	(176	) 	 	 	(174	) 	 	 	(168	) 	 	 	(168	) 	
Cumulative translation, net of tax	 	 	(66	) 	 	 	114	  	 	 	(168	) 	 	 	(156	) 	 	 	(37	) 	
Pension liability	 	 	(11	) 	 	 	(1	) 	 	 	(2	) 	 	 	14	  	 	 	(20	) 	
Other (2)	 	 	62	  	 	 	90	  	 	 	84	  	 	 	17	  	 	 	98	  	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
	 	$	28,825	  	 	$	28,218	  	 	$	27,295	  	 	$	27,942	  	 	$	27,531	  	

(1)	At December 31, 2013, book value increased 4.7% and tangible book value increased 3.8% from December 31, 2012. At December 31, 2013, book value excluding unrealized gains (losses) on investments increased 11.1% from December 31, 2012. Unrealized gains (losses) on investments at December 31, 2013 and 2012 were $1,174 million and $2,633 million, respectively.	
(2)	Other primarily includes proceeds from exercise of stock options and stock compensation.	

Reconciliation Book Value	  	Page 23	

Table of Contents

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

Glossary	  	Page 24