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) – February 2, 2011
 
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.)	
 
Bärengasse 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 February 2, 2011, ACE Limited issued a press release reporting its fourth quarter 2010 results and the availability of its fourth quarter 2010 financial supplement. The press release and the financial supplement are attached hereto as Exhibit 99.1 and Exhibit 99.2, respectively, and are hereby incorporated herein by reference.
 
Item 9.01.	Financial Statements, Pro Forma Financial Information and Exhibits.	
 
(c)	Exhibits	

Exhibit
Number	 	  	Description	
		
 	99.1	  	  	Press release, dated February 2, 2011, reporting fourth quarter 2010 results	
		
 	99.2	  	  	Fourth Quarter 2010 Financial Supplement	

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

ACE LIMITED	
		
By:	 	/ S /    P HILIP V. B ANCROFT        	
	 	Philip V. Bancroft	
	 	Chief Financial Officer	
 
DATE: February 2, 2011

EXHIBIT INDEX

Number	  	Description	  	Method of Filing	
			
99.1	  	Press release, dated February 2, 2011, reporting fourth quarter results	  	Furnished herewith	
			
99.2	  	Fourth Quarter 2010 Financial Supplement	  	Furnished herewith	

Exhibit 99.1

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

	 	Investor Contact:	  	Helen M. Wilson	
	 		  	(441) 299-9283	
	 		  	helen.wilson@acegroup.com	
			
	 	Media Contact:	  	Stephen M. Wasdick	
	 		  	(212) 827-4444	
	 		  	stephen.wasdick@acegroup.com	
ACE REPORTS FOURTH QUARTER 2010 NET INCOME OF $1 BILLION, UP 5%;
OPERATING INCOME OF $702 MILLION AND COMBINED RATIO OF 90.3%;
BOOK VALUE UP 17% FOR THE YEAR, TANGIBLE BOOK VALUE UP 16%;
2010 OPERATING RETURN ON EQUITY OF 13.1%
ZURICH, February 2, 2011 — ACE Limited (NYSE: ACE) today reported net income for the quarter ended December 31, 2010, of $2.92 per share, compared with $2.81 per share for the same quarter last year. (1) Income excluding net realized gains (losses) was $2.05 per share, compared with $2.01 per share for the same quarter last year. ( 2 ) Book value increased $129 million during the quarter. Book value per share was up 2% from September 30, 2010, and tangible book value per share decreased 2% in the quarter due to the Rain and Hail transaction. Book value and tangible book value per share now stand at $68.59 and $54.63, respectively. Annualized operating return on average equity for the quarter was 13.2%. ( 3 ) The property and casualty (P&C) combined ratio for the quarter  was 90.3%.
Fourth Quarter Summary
(in millions, except per share amounts)
(Unaudited)

 	  	 	 	  	 	 	  	 	 	 	(Per Share - Diluted)	 	
 	  	2010	 	  	2009	 	  	Change	 	 	2010	 	  	2009	 	  	Change	 	
Net income	  	$	1,001	  	  	$	953	 	  	 	5	% 	 	$	2.92	 	  	$	2.81	 	  	 	4	% 	
Net realized gains (losses), net of tax	  	 	299	 	  	 	270	 	  	 	NM	  	 	 	0.87	 	  	 	0.80	 	  	 	NM	  	
Income excluding net realized gains (losses), net of tax (2)	  	$	702	  	  	$	683	 	  	 	3	% 	 	$	2.05	 	  	$	2.01	 	  	 	2	% 	

Net income for the year ended December 31, 2010, was $9.11 per share, compared with $7.55 per share for 2009. For the year ended December 31, 2010, income excluding net realized gains (losses) was $7.79 per share, compared with $8.17 per share for 2009. Book value increased $3.3 billion, up 17% during the year ended December 31, 2010, while tangible book value increased $2.6 billion, up 16%. Annualized operating return on equity for the year was 13.1%. The P&C combined ratio for the year ended December 31, 2010, was 90.2%.
Full Year Summary
(in millions, except per share amounts)
(Unaudited)

 	  	 	 	  	 	 	 	 	 	 	(Per Share - Diluted)	 	
 	  	2010	 	  	2009	 	 	Change	 	 	2010	 	  	2009	 	 	Change	 	
							
Net income	  	$	3,108	  	  	$	2,549	 	 	 	22	% 	 	$	9.11	 	  	$	7.55	 	 	 	21	% 	
Net realized gains (losses), net of tax	  	 	451	 	  	 	(210	) 	 	 	NM	  	 	 	1.32	 	  	 	(0.62	) 	 	 	NM	  	
Income excluding net realized gains (losses), net of tax (2)	  	$	2,657	  	  	$	2,759	 	 	 	(4	)% 	 	$	7.79	 	  	$	8.17	 	 	 	(5	)% 	
Evan G. Greenberg, Chairman and Chief Executive Officer of ACE Limited, commented: “ACE had a very good fourth quarter and a strong finish to an excellent year, both financially and operationally. During the year, we made important strides to better position our company for the future.
“Our after-tax operating income for the year was nearly $2.7 billion, with strong contributions from both underwriting and investment income, and our book value continued its track record of growth, closing up 17% for the year. Over the last five years, we have grown our per-share book and tangible book value at a compound annual rate of 14.5% and 15.8%, respectively. Our P&C combined ratio for 2010 was 90.2%, which speaks to our strong underwriting culture and cycle management. I believe these standout financial results, which produced an operating return on equity of 13.1%, demonstrate the power of our well-diversified global balance of businesses.
“During the year we added to our executive management ranks, increased the rigor of our underwriting discipline and completed a number of acquisitions that will pay us dividends immediately and, more importantly, over the longer-term. During the quarter, S&P upgraded the financial strength rating of our core operating insurance companies to AA-, acknowledging the strength of our balance sheet and our distinct global franchise. Without a doubt, we ended the year stronger and better positioned to capitalize upon opportunity in 2011 and beyond.
“While the operating environment remains challenging, both economically and competitively, we are optimistic and confident in our ability to continue delivering superior results.”
Operating highlights for the quarter ended December 31, 2010, were as follows (1):
 
 	•	 	Net premiums written and earned increased 4% and 5%, respectively.	
 
 	•	 	Total pre-tax catastrophe losses including reinstatement premiums were $50 million, of which approximately $30 million related to IBNR accrual for the Australian floods. This compares with $23 million of pre-tax catastrophe losses for the fourth quarter of 2009. For the year, total pre-tax catastrophe losses including reinstatement premiums were $401 million compared with $136 million in 2009.	
 
 	•	 	There were several items in the quarter that had somewhat of an offsetting effect – one related to the prior period and a number related to the current accident year. Favorable prior period development pre-tax was $57 million, compared with $147 million in 2009, and included a reserve charge for our run-off business of $89 million, of which $45 million was a	
 
Page 2/7

 	pre-tax addition to asbestos and environmental reserves. The current accident year benefited from a crop insurance adjustment of $32 million pre-tax and certain one-time premium-related adjustments totaling $80 million. Excluding these items, the current accident year combined ratio was flat compared with prior year. Line by line, the P&C loss ratio is up as would be expected, however, the company’s mix of business is changing from higher loss ratio lines to lower loss ratio business.	
 
 	•	 	The P&C combined ratio was 90.3% compared with 89.6% last year. The P&C combined ratio for the year was 90.2% compared with 88.3% in 2009.	
 
 	•	 	P&C underwriting income was $310 million compared with $313 million in 2009. For the year, P&C underwriting income was $1.2 billion compared with $1.4 billion in 2009.	
 
 	•	 	Operating cash flow was $771 million for the quarter and $3.5 billion for the year.	
 
 	•	 	Net loss reserves increased $253 million. For the year, net loss reserves increased $332 million.	
 
 	•	 	Net investment income increased 4% to $532 million. For the year, net investment income increased 2% to approximately $2.1 billion.	
 
 	•	 	Annualized operating return on average equity was 13.2% for the quarter and 13.1% for the year. (3)	
 
 	•	 	Book value per share (4 ) increased 2% from $67.34 at September 30, 2010, to $68.59, and increased 17% from $58.44 at December 31, 2009.	
 
 	•	 	Tangible book value per share (4 ) decreased 2% from $55.83 at September 30, 2010, to $54.63, and increased 17% from $46.76 at December 31, 2009. Adjusting for acquisitions, principally Rain and Hail, the tangible book value per share increased 1.5% for the quarter and 21% for the year.	
 
 	•	 	Net realized and unrealized losses after tax from our investment portfolio totaled approximately $310 million.	
Details of our financial results for our business segments are available in the ACE Limited Financial Supplement. Key segment items for the quarter ended December 31, 2010, include:
 
 	•	 	Insurance-North American: Net premiums written increased 7%. The combined ratio was 90.1% compared with 89.5%.	
 
 	•	 	Insurance-Overseas General: Net premiums written remained flat. Adjusting for the impact of foreign exchange, they increased 1%. The combined ratio was unchanged at 90.3%.	
 
 	•	 	Global Reinsurance: Net premiums written decreased 1%. The combined ratio was 71.7% compared with 67.1%.	
 
 	•	 	Life: Life revenues increased 5%. Operating income was $78 million compared with $90 million.	
The company also issued 2011 guidance. Operating income is expected to range between $6.10 and $6.50 per share. Catastrophe losses included in the estimate are $370 million pre-tax ($300 million after-tax). The operating income projections included in this guidance are for current accident year results only and by definition do not include any estimate for prior period reserve development. For 2010, the comparable operating income per share excluding prior period reserve development and including $0.99 of after-tax catastrophe losses was $6.48.
Please refer to the ACE Limited Financial Supplement dated December 31, 2010, which is posted on the company’s website in the Investor Information section, and access Financial Reports for more detailed information on individual segment performance, together with additional disclosure on reinsurance recoverable, loss reserves, investment portfolio, and capital structure.
ACE will host its fourth quarter earnings conference call and webcast on Thursday, February 3, 2011, beginning at 8:30 a.m. ET. The earnings conference call will be available via live and archived webcast at www.acegroup.com or by dialing 888-318-7470 (within the United States) or 719-325-2392 (international); passcode 7918119. Please refer to the ACE Limited website in the Investor Information section under Calendar of Events for details. A replay of the call will be available for approximately one month. To listen to the replay, dial: 888-203-1112 (in the United States) or 719-457-0820 (international); passcode 7918119.

Page 3/7

Celebrating 25 years of insuring progress, the ACE Group is a global leader in insurance and reinsurance serving a diverse group of clients. Headed by ACE Limited (NYSE:ACE), the ACE Group conducts its business on a worldwide basis with operating subsidiaries in more than 50 countries. Additional information can be found at: www.acegroup.com
 
(1) 	All comparisons are with the same period last year unless specifically stated.	
(2) 	Non-GAAP Financial Measures:	
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 amounts of these gains (losses) do not relate to their respective operations.
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). Life underwriting income includes net investment income. We believe the use of these measures enhances the understanding of our results of operations by highlighting the underlying profitability of our insurance business.
See reconciliation of Non-GAAP Financial Measures on page 26 in the financial supplement. These measures should not be viewed as a substitute for net income determined in accordance with generally accepted accounting principles (GAAP).
 
(3) 	Calculated using income excluding net realized gains (losses) divided by average shareholders’ equity for the period excluding unrealized gains (losses) on investments and the deferred tax component included in shareholders’ equity. To annualize a quarterly rate, multiply by four.	
(4)	Book value per common share is shareholders’ equity divided by the shares outstanding. Tangible book value per common share is shareholders’ equity less goodwill and other intangible assets divided by the shares outstanding.	
NM – not meaningful comparison
Cautionary Statement Regarding Forward-Looking Statements :
Forward-looking statements made in this press release, such as those related to company performance and guidance, recent corporate developments and acquisitions, ACE’s products and product mix, economic outlook and insurance market conditions, reflect the company’s current views with respect to future events and financial performance and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements involve risks and uncertainties, which may cause actual results to differ materially from those set forth in these statements. For example, the company’s forward-looking statements could be affected by competition, pricing and policy term trends, the levels of new and renewal business achieved, 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, and economic, political, regulatory, insurance and reinsurance business conditions, as well as management’s response to these factors, and other factors identified in the company’s filings with the Securities and Exchange Commission. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the dates on which they are made. The company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
(tables to follow)
 
Page 4/7

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

   	  	December 31
2010 	 	  	December 31
2009	 	
			
Assets	  				  				
Investments	  	$	51,407	 	  	$	46,515	 	
Cash	  	 	772	 	  	 	669	 	
Insurance and reinsurance balances receivable	  	 	4,233	 	  	 	3,671	 	
Reinsurance recoverable on losses and loss expenses	  	 	12,871	 	  	 	13,595	 	
Other assets	  	 	14,072	 	  	 	13,530	 	
	  	 	 	 	  	 	 	 	
Total assets	  	$	83,355	 	  	$	77,980	 	

Liabilities	  				  				
Unpaid losses and loss expenses	  	$	37,391	 	  	$	37,783	 	
Unearned premiums	  	 	6,330	 	  	 	6,067	 	
Other liabilities	  	 	16,660	 	  	 	14,463	 	
	  	 	 	 	  	 	 	 	
Total liabilities	  	 	60,381	 	  	 	58,313	 	

Shareholders’ equity	  				  				
Total shareholders’ equity	  	 	22,974	 	  	 	19,667	 	
	  	 	 	 	  	 	 	 	
Total liabilities and shareholders’ equity	  	$	83,355	 	  	$	77,980	 	

Book value per common share (4) 	  	$	68.59 	  	  	$	58.44	 	
 
Page 5/7

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	 	
   	  	2010 	 	 	2009	 	 	2010	 	 	2009	 	
					
Gross premiums written	  	$	4,565	 	 	$	4,507	 	 	$	19,511	 	 	$	19,164	 	
					
Net premiums written	  	 	3,422	 	 	 	3,305	 	 	 	13,708	 	 	 	13,299	 	
					
Net premiums earned	  	 	3,572	 	 	 	3,387	 	 	 	13,504	 	 	 	13,240	 	
Losses and loss expenses	  	 	1,971	 	 	 	1,900	 	 	 	7,579	 	 	 	7,422	 	
Policy benefits	  	 	90	 	 	 	69	 	 	 	357	 	 	 	325	 	
Policy acquisition costs	  	 	640	 	 	 	559	 	 	 	2,337	 	 	 	2,130	 	
Administrative expenses	  	 	502	 	 	 	486	 	 	 	1,858	 	 	 	1,811	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Underwriting income (2)	  	 	369	 	 	 	373	 	 	 	1,373	 	 	 	1,552	 	
					
Net investment income	  	 	532	 	 	 	512	 	 	 	2,070	 	 	 	2,031	 	
Net realized gains (losses)	  	 	305	 	 	 	373	 	 	 	432	 	 	 	(196	) 	
Interest expense	  	 	62	 	 	 	56	 	 	 	224	 	 	 	225	 	
Other income (expense)	  	 	(10)	  	 	 	(41)	  	 	 	16	 	 	 	(85	) 	
Income tax expense	  	 	133	 	 	 	208	 	 	 	559	 	 	 	528	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income available to holders of common shares	  	$	1,001	 	 	$	953	 	 	$	3,108	 	 	$	2,549	 	

Diluted earnings per share:	  				 				 				 				
Income excluding net realized gains (losses) (2)	  	$	2.05	 	 	$	2.01	 	 	$	7.79	 	 	$	8.17	 	
Net income	  	$	2.92	 	 	$	2.81	 	 	$	9.11	 	 	$	7.55	 	
					
Weighted average diluted shares outstanding	  	 	342.6 	  	 	 	339.0	 	 	 	341.2	 	 	 	337.5	 	
					
Loss and loss expense ratio	  	 	58.2	% 	 	 	59.1	% 	 	 	59.2	% 	 	 	58.8	% 	
Policy acquisition cost ratio	  	 	18.1	% 	 	 	16.7	% 	 	 	17.4	% 	 	 	16.2	% 	
Administrative expense ratio	  	 	14.0	% 	 	 	13.8	% 	 	 	13.6	% 	 	 	13.3	% 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Combined ratio	  	 	90.3	%  	 	 	89.6	% 	 	 	90.2	% 	 	 	88.3	% 	

Page 6/7

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

 	  	Three Months Ended
December 31	 	  	Year Ended
December 31	 	
   	  	2010 	 	  	2009	 	  	2010	 	  	2009	 	
					
Gross Premiums Written	  				  				  				  				
					
Insurance - North American	  	$	2,256	 	  	$	2,196	 	  	$	9,794	 	  	$	9,668	 	
Insurance - Overseas General	  	 	1,750	 	  	 	1,752	 	  	 	6,992	 	  	 	6,832	 	
Global Reinsurance	  	 	146	 	  	 	162	 	  	 	1,146	 	  	 	1,115	 	
Life	  	 	413	 	  	 	397	 	  	 	1,579	 	  	 	1,549	 	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total	  	$	4,565	 	  	$	4,507	 	  	$	19,511	 	  	$	19,164	 	

Net Premiums Written	  				  				  				  				
					
Insurance - North American	  	$	1,519	 	  	$	1,421	 	  	$	5,797	 	  	$	5,641	 	
Insurance - Overseas General	  	 	1,353	 	  	 	1,350	 	  	 	5,280	 	  	 	5,145	 	
Global Reinsurance	  	 	143	 	  	 	144	 	  	 	1,075	 	  	 	1,038	 	
Life	  	 	407	 	  	 	390	 	  	 	1,556	 	  	 	1,475	 	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total	  	$	3,422	 	  	$	3,305	 	  	$	13,708	 	  	$	13,299	 	

Net Premiums Earned	  				  				  				  				
					
Insurance - North American	  	$	1,511	 	  	$	1,365	 	  	$	5,651	 	  	$	5,684	 	
Insurance - Overseas General	  	 	1,405	 	  	 	1,400	 	  	 	5,240	 	  	 	5,147	 	
Global Reinsurance	  	 	268	 	  	 	253	 	  	 	1,071	 	  	 	979	 	
Life	  	 	388	 	  	 	369	 	  	 	1,542	 	  	 	1,430	 	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total	  	$	3,572	 	  	$	3,387	 	  	$	13,504	 	  	$	13,240	 	

Income Excluding Net Realized Gains (Losses) (2) 	  				  				  				  				
					
Insurance - North American	  	$	330	 	  	$	318	 	  	$	1,264	 	  	$	1,245	 	
Insurance - Overseas General	  	 	229	 	  	 	207	 	  	 	813	 	  	 	839	 	
Global Reinsurance	  	 	141	 	  	 	146	 	  	 	543	 	  	 	633	 	
Life	  	 	78	 	  	 	90	 	  	 	300	 	  	 	283	 	
Corporate	  	 	(76)	  	  	 	(78)	  	  	 	(263)	  	  	 	(241	) 	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total	  	$	702 	  	  	$	683	 	  	$	2,657	 	  	$	2,759	 	

Page 7/7

Exhibit 99.2

 

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

					
	 	ACE Limited
Financial Supplement Table of Contents	  		

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

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

 	 	 	 	 	% Change
4Q-10 vs.	 	 	 	 	 	% Change
4Q-10 vs.	 	 	 	 	 	% Change
2010 vs.	 	 	 	 	 	% Change
2010 vs.	 	
   	 	Three months ended December 31	 	 			 	Constant $	 	 			 	Year ended December 31	 	 			 	Constant $	 	 			
 	 	2010	 	 	2009	 	 	4Q-09	 	 	2009 (2)	 	 	4Q-09 (2)	 	 	2010	 	 	2009	 	 	2009	 	 	2009 (2)	 	 	2009	 	
Gross premiums written	 	$	4,565	  	 	$	4,507	  	 	 	1	% 	 	$	4,493	  	 	 	2	% 	 	$	19,511	  	 	$	19,164	  	 	 	2	% 	 	$	19,382	  	 	 	1	% 	
Net premiums written	 	$	3,422	  	 	$	3,305	  	 	 	4	% 	 	$	3,296	  	 	 	4	% 	 	$	13,708	  	 	$	13,299	  	 	 	3	% 	 	$	13,489	  	 	 	2	% 	
Net premiums earned	 	$	3,572	  	 	$	3,387	  	 	 	5	% 	 	$	3,377	  	 	 	6	% 	 	$	13,504	  	 	$	13,240	  	 	 	2	% 	 	$	13,414	  	 	 	1	% 	
Net investment income	 	$	532	  	 	$	512	  	 	 	4	% 	 				 				 	$	2,070	  	 	$	2,031	  	 	 	2	% 	 				 				
Net income	 	$	1,001	  	 	$	953	  	 	 	5	% 	 				 				 	$	3,108	  	 	$	2,549	  	 	 	22	% 	 				 				
Income excluding net realized gains (losses) (1)	 	$	702	  	 	$	683	  	 	 	3	% 	 				 				 	$	2,657	  	 	$	2,759	  	 	 	-4	% 	 				 				
Comprehensive income	 	$	485	  	 	$	991	  	 	 	NM	  	 				 				 	$	3,879	  	 	$	5,288	  	 	 	-27	% 	 				 				
Operating cash flow	 	$	771	  	 	$	1,003	  	 	 	-23	% 	 				 				 	$	3,546	  	 	$	3,335	  	 	 	6	% 	 				 				
											
P&C combined ratio	 				 				 				 				 				 				 				 				 				 				
Loss and loss expense ratio	 	 	58.2	% 	 	 	59.1	% 	 				 				 				 	 	59.2	% 	 	 	58.8	% 	 				 				 				
Underwriting and administrative expense ratio	 	 	32.1	% 	 	 	30.5	% 	 				 				 				 	 	31.0	% 	 	 	29.5	% 	 				 				 				
	 	 	 	 	 	 	 	 	 				 				 				 	 	 	 	 	 	 	 	 				 				 				
Combined ratio	 	 	90.3	% 	 	 	89.6	% 	 				 				 				 	 	90.2	% 	 	 	88.3	% 	 				 				 				
Annualized ROE*	 	 	13.2	% 	 	 	14.7	% 	 				 				 				 	 	13.1	% 	 	 	15.7	% 	 				 				 				
Annualized ROE on net income	 	 	17.5	% 	 	 	19.9	% 	 				 				 				 	 	14.6	% 	 	 	14.9	% 	 				 				 				
Effective tax rate on income excluding net realized gains (losses)	 	 	13.5	% 	 	 	16.6	% 	 				 				 				 	 	16.1	% 	 	 	17.3	% 	 				 				 				
											
Diluted earnings per share	 				 				 				 				 				 				 				 				 				 				
Income excluding net realized gains (losses) (1)	 	$	2.05	  	 	$	2.01	  	 	 	2	% 	 				 				 	$	7.79	  	 	$	8.17	  	 	 	-5	% 	 				 				
Net income	 	$	2.92	  	 	$	2.81	  	 	 	4	% 	 				 				 	$	9.11	  	 	$	7.55	  	 	 	21	% 	 				 				
											
Book value per common share	 				 				 				 				 				 	$	68.59	  	 	$	58.44	  	 	 	17	% 	 				 				
Tangible book value per common share	 				 				 				 				 				 	$	54.63	  	 	$	46.76	  	 	 	17	% 	 				 				
											
Weighted average basic common shares outstanding	 	 	340.2	  	 	 	337.4	  	 				 				 				 	 	339.7	  	 	 	336.7	  	 				 				 				
Weighted average diluted common shares outstanding	 	 	342.6	  	 	 	339.0	  	 				 				 				 	 	341.2	  	 	 	337.5	  	 				 				 				
											
Debt/total capitalization	 	 	16.7	% 	 	 	14.2	% 	 				 				 				 				 				 				 				 				
 
(1)	See Non-GAAP Financial Measures.	
(2)	Prior periods on a constant dollar basis.	
*	Calculated using income excluding net realized gains (losses).	

Financial Highlights	  	Page 1	

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

ACE Limited Consolidated	  	4Q-10	 	 	3Q-10	 	 	2Q-10	 	 	1Q-10	 	 	4Q-09	 	 	Full Year
2010	 	 	Full Year
2009	 	
Consolidated Results Excluding Life Segment	  				 				 				 				 				 				 				
Gross premiums written	  	$	4,152	  	 	$	4,624	  	 	$	4,756	  	 	$	4,400	  	 	$	4,110	  	 	$	17,932	  	 	$	17,615	  	
Net premiums written	  	 	3,015	  	 	 	2,922	  	 	 	3,029	  	 	 	3,186	  	 	 	2,915	  	 	 	12,152	  	 	 	11,824	  	
Net premiums earned	  	 	3,184	  	 	 	3,036	  	 	 	2,845	  	 	 	2,897	  	 	 	3,018	  	 	 	11,962	  	 	 	11,810	  	
Losses and loss expenses	  	 	1,854	  	 	 	1,768	  	 	 	1,671	  	 	 	1,790	  	 	 	1,784	  	 	 	7,083	  	 	 	6,940	  	
Policy benefits	  	 	—  	  	 	 	—  	  	 	 	1	  	 	 	3	  	 	 	1	  	 	 	4	  	 	 	4	  	
Policy acquisition costs	  	 	575	  	 	 	542	  	 	 	470	  	 	 	493	  	 	 	504	  	 	 	2,080	  	 	 	1,914	  	
Administrative expenses	  	 	445	  	 	 	374	  	 	 	409	  	 	 	402	  	 	 	416	  	 	 	1,630	  	 	 	1,568	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Underwriting income excluding Life segment	  	 	310	  	 	 	352	  	 	 	294	  	 	 	209	  	 	 	313	  	 	 	1,165	  	 	 	1,384	  	
								
Life underwriting income excluding investment income	  	 	59	  	 	 	50	  	 	 	53	  	 	 	46	  	 	 	60	  	 	 	208	  	 	 	168	  	
Net investment income	  	 	532	  	 	 	516	  	 	 	518	  	 	 	504	  	 	 	512	  	 	 	2,070	  	 	 	2,031	  	
Net realized gains (losses)	  	 	305	  	 	 	(50	) 	 	 	9	  	 	 	168	  	 	 	373	  	 	 	432	  	 	 	(196	) 	
Interest expense	  	 	62	  	 	 	58	  	 	 	52	  	 	 	52	  	 	 	56	  	 	 	224	  	 	 	225	  	
Other income (expense) (1)	  	 	(10	) 	 	 	25	  	 	 	(3	) 	 	 	4	  	 	 	(41	) 	 	 	16	  	 	 	(85	) 	
Income tax expense	  	 	133	  	 	 	160	  	 	 	142	  	 	 	124	  	 	 	208	  	 	 	559	  	 	 	528	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income	  	 	1,001	  	 	 	675	  	 	 	677	  	 	 	755	  	 	 	953	  	 	 	3,108	  	 	 	2,549	  	
								
Net realized gains (losses)	  	 	305	  	 	 	(50	) 	 	 	9	  	 	 	168	  	 	 	373	  	 	 	432	  	 	 	(196	) 	
Net realized gains (losses) in other income (expense) (1)	  	 	17	  	 	 	39	  	 	 	3	  	 	 	10	  	 	 	(31	) 	 	 	69	  	 	 	(63	) 	
Tax expense (benefit) on net realized gains (losses)	  	 	23	  	 	 	2	  	 	 	23	  	 	 	2	  	 	 	72	  	 	 	50	  	 	 	(49	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income excluding net realized gains (losses) (2)	  	$	702	  	 	$	688	  	 	$	688	  	 	$	579	  	 	$	683	  	 	$	2,657	  	 	$	2,759	  	

% Change versus prior year period (3) 	  				 				 				 				 				 				 				
Net premiums written	  	 	3	% 	 	 	5	% 	 	 	-1	% 	 	 	4	% 	 	 	9	% 	 	 	3	% 	 	 	0	% 	
Net premiums earned	  	 	6	% 	 	 	0	% 	 	 	-2	% 	 	 	1	% 	 	 	5	% 	 	 	1	% 	 	 	-2	% 	
								
Net premiums written constant $	  	 	4	% 	 	 	5	% 	 	 	-3	% 	 	 	0	% 	 	 	4	% 	 	 	1	% 	 	 	3	% 	
Net premiums earned constant $	  	 	6	% 	 	 	1	% 	 	 	-4	% 	 	 	-3	% 	 	 	1	% 	 	 	0	% 	 	 	2	% 	
								
Other ratios	  				 				 				 				 				 				 				
Net premiums written/gross premiums written	  	 	73	% 	 	 	63	% 	 	 	64	% 	 	 	72	% 	 	 	71	% 	 	 	68	% 	 	 	67	% 	
Effective tax rate on income excluding net realized gains (losses)	  	 	13.5	% 	 	 	18.7	% 	 	 	14.7	% 	 	 	17.4	% 	 	 	16.6	% 	 	 	16.1	% 	 	 	17.3	% 	
								
P&C combined ratio (3) 	  				 				 				 				 				 				 				
Loss and loss expense ratio	  	 	58.2	% 	 	 	58.2	% 	 	 	58.8	% 	 	 	61.9	% 	 	 	59.1	% 	 	 	59.2	% 	 	 	58.8	% 	
Policy acquisition cost ratio	  	 	18.1	% 	 	 	17.9	% 	 	 	16.5	% 	 	 	17.0	% 	 	 	16.7	% 	 	 	17.4	% 	 	 	16.2	% 	
Administrative expense ratio	  	 	14.0	% 	 	 	12.3	% 	 	 	14.4	% 	 	 	13.9	% 	 	 	13.8	% 	 	 	13.6	% 	 	 	13.3	% 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Combined ratio	  	 	90.3	% 	 	 	88.4	% 	 	 	89.7	% 	 	 	92.8	% 	 	 	89.6	% 	 	 	90.2	% 	 	 	88.3	% 	

P&C expense ratio	  	 	32.1	% 	 	 	30.2	% 	 	 	30.9	% 	 	 	30.9	% 	 	 	30.5	% 	 	 	31.0	% 	 	 	29.5	% 	
P&C expense ratio excluding A&H	  	 	28.2	% 	 	 	25.7	% 	 	 	26.5	% 	 	 	26.9	% 	 	 	26.0	% 	 	 	26.8	% 	 	 	25.0	% 	
								
Large losses and other items (before tax) (3) 	  				 				 				 				 				 				 				
Reinstatement premiums (expensed) collected	  	$	1	  	 	$	(6	) 	 	$	(5	) 	 	$	(25	) 	 	$	—  	  	 	$	(35	) 	 	$	1	  	
Catastrophe losses	  	$	51	  	 	$	91	  	 	$	76	  	 	$	148	  	 	$	23	  	 	$	366	  	 	$	137	  	
Prior period development excluding Life - unfavorable (favorable) (4)	  	$	(57	) 	 	$	(201	) 	 	$	(149	) 	 	$	(96	) 	 	$	(147	) 	 	$	(503	) 	 	$	(576	) 	
Loss and loss expense ratio excluding catastophe losses and prior period development	  	 	58.5	% 	 	 	61.7	% 	 	 	61.2	% 	 	 	61.1	% 	 	 	63.3	% 	 	 	60.6	% 	 	 	62.5	% 	
 
(1)	Net realized investment and derivative losses related to unconsolidated entities.	
(2)	See Non-GAAP Financial Measures.	
(3)	Presented excluding the Life segment to allow for comparison and analysis with earnings guidance. This is a non-GAAP measure.	
(4)	For Q1 2010, prior period favorable development is net of $45 million for the annual crop insurance profit-sharing commission that is included in the expense ratio.	

Consolidated Results	  	Page 2	

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

 	  	December 31
2010	 	 	September 30
2010	 	 	June 30
2010	 	 	March 31
2010	 	 	December 31
2009	 	
Assets	  	(Unaudited)	 	 	(Unaudited)	 	 	(Unaudited)	 	 	(Unaudited)	 	 	(Audited)	 	
Fixed maturities available for sale, at fair value	  	$	37,539	  	 	$	41,103	  	 	$	41,554	  	 	$	40,564	  	 	$	39,525	  	
Fixed maturities held to maturity, at amortized cost	  	 	9,501	  	 	 	5,977	  	 	 	3,222	  	 	 	3,335	  	 	 	3,481	  	
Equity securities, at fair value	  	 	692	  	 	 	415	  	 	 	214	  	 	 	316	  	 	 	467	  	
Short-term investments, at fair value	  	 	1,983	  	 	 	1,857	  	 	 	2,097	  	 	 	2,052	  	 	 	1,667	  	
Other investments	  	 	1,692	  	 	 	1,619	  	 	 	1,462	  	 	 	1,472	  	 	 	1,375	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total investments	  	 	51,407	  	 	 	50,971	  	 	 	48,549	  	 	 	47,739	  	 	 	46,515	  	
						
Cash	  	 	772	  	 	 	487	  	 	 	668	  	 	 	726	  	 	 	669	  	
Securities lending collateral	  	 	1,495	  	 	 	1,629	  	 	 	1,429	  	 	 	1,611	  	 	 	1,544	  	
Insurance and reinsurance balances receivable	  	 	4,233	  	 	 	3,694	  	 	 	3,958	  	 	 	3,685	  	 	 	3,671	  	
Reinsurance recoverable on losses and loss expenses	  	 	12,871	  	 	 	13,475	  	 	 	13,132	  	 	 	13,335	  	 	 	13,595	  	
Deferred policy acquisition costs	  	 	1,641	  	 	 	1,621	  	 	 	1,574	  	 	 	1,517	  	 	 	1,445	  	
Value of business acquired	  	 	634	  	 	 	656	  	 	 	668	  	 	 	712	  	 	 	748	  	
Prepaid reinsurance premiums	  	 	1,511	  	 	 	1,678	  	 	 	1,904	  	 	 	1,646	  	 	 	1,521	  	
Goodwill and other intangible assets	  	 	4,676	  	 	 	3,906	  	 	 	3,836	  	 	 	3,883	  	 	 	3,931	  	
Deferred tax assets	  	 	757	  	 	 	873	  	 	 	1,105	  	 	 	1,174	  	 	 	1,154	  	
Investments in partially owned insurance companies	  	 	360	  	 	 	510	  	 	 	459	  	 	 	454	  	 	 	433	  	
Other assets	  	 	2,998	  	 	 	2,888	  	 	 	2,878	  	 	 	2,847	  	 	 	2,754	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total assets	  	$	83,355	  	 	$	82,388	  	 	$	80,160	  	 	$	79,329	  	 	$	77,980	  	

Liabilities	  				 				 				 				 				
Unpaid losses and loss expenses	  	$	37,391	  	 	$	37,742	  	 	$	37,062	  	 	$	37,551	  	 	$	37,783	  	
Unearned premiums	  	 	6,330	  	 	 	6,571	  	 	 	6,836	  	 	 	6,437	  	 	 	6,067	  	
Future policy benefits	  	 	3,106	  	 	 	3,083	  	 	 	3,034	  	 	 	3,057	  	 	 	3,008	  	
Insurance and reinsurance balances payable	  	 	3,282	  	 	 	3,091	  	 	 	3,331	  	 	 	3,147	  	 	 	3,295	  	
Securities lending payable	  	 	1,518	  	 	 	1,653	  	 	 	1,454	  	 	 	1,639	  	 	 	1,586	  	
Payable for securities purchased	  	 	292	  	 	 	473	  	 	 	400	  	 	 	534	  	 	 	154	  	
Accounts payable, accrued expenses, and other liabilities	  	 	3,495	  	 	 	3,308	  	 	 	3,019	  	 	 	2,711	  	 	 	2,792	  	
Short-term debt	  	 	1,300	  	 	 	155	  	 	 	147	  	 	 	150	  	 	 	161	  	
Long-term debt	  	 	3,358	  	 	 	3,158	  	 	 	3,158	  	 	 	3,158	  	 	 	3,158	  	
Trust preferred securities	  	 	309	  	 	 	309	  	 	 	309	  	 	 	309	  	 	 	309	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total liabilities	  	 	60,381	  	 	 	59,543	  	 	 	58,750	  	 	 	58,693	  	 	 	58,313	  	
						
Shareholders’ equity	  				 				 				 				 				
Total shareholders’ equity, excl. AOCI	  	 	21,380	  	 	 	20,735	  	 	 	20,116	  	 	 	19,510	  	 	 	18,844	  	
Accumulated other comprehensive income (AOCI)	  	 	1,594	  	 	 	2,110	  	 	 	1,294	  	 	 	1,126	  	 	 	823	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total shareholders’ equity	  	 	22,974	  	 	 	22,845	  	 	 	21,410	  	 	 	20,636	  	 	 	19,667	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total liabilities and shareholders’ equity	  	$	83,355	  	 	$	82,388	  	 	$	80,160	  	 	$	79,329	  	 	$	77,980	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Book value per common share (1) 	  	$	68.59	  	 	$	67.34	  	 	$	63.20	  	 	$	60.94	  	 	$	58.44	  	
% change over prior quarter	  	 	2	% 	 	 	7	% 	 	 	4	% 	 	 	4	% 	 	 	5	% 	
Tangible book value per common share (1) 	  	$	54.63	  	 	$	55.83	  	 	$	51.88	  	 	$	49.48	  	 	$	46.76	  	
% change over prior quarter	  	 	-2	% 	 	 	8	% 	 	 	5	% 	 	 	6	% 	 	 	5	% 	
 
(1)	See Non-GAAP Financial Measures.	

Consol Bal Sheet	  	Page 3	

					
	 	ACE Limited	 		
	 	Consolidated Premiums and Income Excluding Net Realized Gains (Losses) by Line of Business	 		
	 	(in millions of U.S. dollars)	 		
	 	(Unaudited)	 		
 
ACE Limited Consolidated

 	 	4Q-10	 	 	% of
Total
Consolidated	 	 	4Q-09	 	 	% of
Total
Consolidated	 	 	% Change
4Q-10 vs.
4Q-09	 	 	Full
Year
2010	 	 	% of
Total
Consolidated	 	 	Full
Year
2009	 	 	% of
Total
Consolidated	 	 	% Change
2010 vs.
2009	 	
Net premiums written	 				 				 				 				 				 				 				 				 				 				
Property and all other	 	$	953	  	 	 	28	% 	 	$	767	  	 	 	23	% 	 	 	24	% 	 	$	4,052	  	 	 	30	% 	 	$	4,060	  	 	 	31	% 	 	 	0	% 	
Casualty	 	 	1,444	  	 	 	42	% 	 	 	1,555	  	 	 	47	% 	 	 	-7	% 	 	 	5,768	  	 	 	42	% 	 	 	5,547	  	 	 	42	% 	 	 	4	% 	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Subtotal	 	 	2,397	  	 	 	70	% 	 	 	2,322	  	 	 	70	% 	 	 	3	% 	 	 	9,820	  	 	 	72	% 	 	 	9,607	  	 	 	73	% 	 	 	2	% 	
Personal accident (A&H) (1)	 	 	876	  	 	 	26	% 	 	 	864	  	 	 	26	% 	 	 	1	% 	 	 	3,346	  	 	 	24	% 	 	 	3,229	  	 	 	24	% 	 	 	4	% 	
Life (2)	 	 	149	  	 	 	4	% 	 	 	119	  	 	 	4	% 	 	 	25	% 	 	 	542	  	 	 	4	% 	 	 	463	  	 	 	3	% 	 	 	17	% 	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total consolidated	 	$	3,422	  	 	 	100	% 	 	$	3,305	  	 	 	100	% 	 	 	4	% 	 	$	13,708	  	 	 	100	% 	 	$	13,299	  	 	 	100	% 	 	 	3	% 	

Add: Life deposits on investment contracts	 	 	93	  	 				 	 	100	  	 				 	 	-7	% 	 	 	257	  	 				 	 	404	  	 				 	 	-36	% 	
	 	 	 	 	 				 	 	 	 	 				 	 	 	 	 	 	 	 	 				 	 	 	 	 				 	 	 	 	
Non-GAAP total net premium written	 	$	3,515	  	 				 	$	3,405	  	 				 	 	3	% 	 	$	13,965	  	 				 	$	13,703	  	 				 	 	2	% 	

Net premiums earned	 				 				 				 				 				 				 				 				 				 				
Property and all other	 	$	1,027	  	 	 	29	% 	 	$	961	  	 	 	29	% 	 	 	7	% 	 	$	3,898	  	 	 	29	% 	 	$	4,023	  	 	 	30	% 	 	 	-3	% 	
Casualty	 	 	1,546	  	 	 	43	% 	 	 	1,465	  	 	 	43	% 	 	 	6	% 	 	 	5,752	  	 	 	43	% 	 	 	5,587	  	 	 	42	% 	 	 	3	% 	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Subtotal	 	 	2,573	  	 	 	72	% 	 	 	2,426	  	 	 	72	% 	 	 	6	% 	 	 	9,650	  	 	 	72	% 	 	 	9,610	  	 	 	72	% 	 	 	0	% 	
Personal accident (A&H) (1)	 	 	861	  	 	 	24	% 	 	 	850	  	 	 	25	% 	 	 	1	% 	 	 	3,331	  	 	 	25	% 	 	 	3,198	  	 	 	25	% 	 	 	4	% 	
Life (2)	 	 	138	  	 	 	4	% 	 	 	111	  	 	 	3	% 	 	 	24	% 	 	 	523	  	 	 	3	% 	 	 	432	  	 	 	3	% 	 	 	21	% 	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total consolidated	 	$	3,572	  	 	 	100	% 	 	$	3,387	  	 	 	100	% 	 	 	5	% 	 	$	13,504	  	 	 	100	% 	 	$	13,240	  	 	 	100	% 	 	 	2	% 	

Income excluding net realized gains (losses)	 				 				 				 				 				 				 				 				 				 				
Property, casualty, and all other	 	$	551	  	 	 	78	% 	 	$	527	  	 	 	77	% 	 	 	5	% 	 	$	2,093	  	 	 	79	% 	 	$	2,221	  	 	 	80	% 	 	 	-6	% 	
Personal accident (A&H) (1)	 	 	119	  	 	 	17	% 	 	 	113	  	 	 	17	% 	 	 	5	% 	 	 	427	  	 	 	16	% 	 	 	404	  	 	 	15	% 	 	 	6	% 	
Life (2)	 	 	32	  	 	 	5	% 	 	 	43	  	 	 	6	% 	 	 	-26	% 	 	 	137	  	 	 	5	% 	 	 	134	  	 	 	5	% 	 	 	2	% 	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total consolidated	 	$	702	  	 	 	100	% 	 	$	683	  	 	 	100	% 	 	 	3	% 	 	$	2,657	  	 	 	100	% 	 	$	2,759	  	 	 	100	% 	 	 	-4	% 	

(1)	Consolidated A&H includes Combined Insurance which is reported in the Insurance - Overseas General and Life segments.	
(2)	Excludes the North America A&H business from Combined Insurance which is included in the Life segment.	

Line of Business	  	Page 4	

			
	  	ACE Limited
 
Consolidated Premiums and Income Excluding Net Realized Gains (Losses) by Line of Business, Adjusted for Foreign Exchange
(in millions of U.S. dollars)
(Unaudited)	

 
																									
ACE Limited Consolidated Constant Dollar	  	4Q-10	 	  	Constant $
4Q-09 (3)	 	  	Constant $
% Change
4Q-10 vs.
4Q-09 (3)	 	 	Full
Year
2010	 	  	Constant $
Full Year 09  (3)	 	  	Constant $
% Change
2010 vs.
2009 (3)	 	
Net premiums written	  				  				  				 				  				  				
Property, casualty, and all other	  	$	2,397	  	  	$	2,315	  	  	 	4	% 	 	$	9,820	  	  	$	9,693	  	  	 	1	% 	
Personal accident (A&H) (1)	  	 	876	  	  	 	862	  	  	 	2	% 	 	 	3,346	  	  	 	3,331	  	  	 	0	% 	
Life (2)	  	 	149	  	  	 	119	  	  	 	25	% 	 	 	542	  	  	 	465	  	  	 	17	% 	
	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	
Total consolidated	  	$	3,422	  	  	$	3,296	  	  	 	4	% 	 	$	13,708	  	  	$	13,489	  	  	 	2	% 	

Net premiums earned	  				  				  				 				  				  				
Property, casualty, and all other	  	$	2,573	  	  	$	2,417	  	  	 	6	% 	 	$	9,650	  	  	$	9,682	  	  	 	0	% 	
Personal accident (A&H) (1)	  	 	861	  	  	 	849	  	  	 	1	% 	 	 	3,331	  	  	 	3,298	  	  	 	1	% 	
Life (2)	  	 	138	  	  	 	111	  	  	 	24	% 	 	 	523	  	  	 	434	  	  	 	21	% 	
	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	
Total consolidated	  	$	3,572	  	  	$	3,377	  	  	 	6	% 	 	$	13,504	  	  	$	13,414	  	  	 	1	% 	

Income excluding net realized gains (losses)	  				  				  				 				  				  				
Property, casualty, and all other	  	$	551	  	  	$	524	  	  	 	5	% 	 	$	2,093	  	  	$	2,223	  	  	 	-6	% 	
Personal accident (A&H) (1)	  	 	119	  	  	 	111	  	  	 	7	% 	 	 	427	  	  	 	419	  	  	 	2	% 	
Life (2)	  	 	32	  	  	 	43	  	  	 	-26	% 	 	 	137	  	  	 	134	  	  	 	2	% 	
	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	
Total consolidated	  	$	702	  	  	$	678	  	  	 	4	% 	 	$	2,657	  	  	$	2,776	  	  	 	-4	% 	

(1)	Consolidated A&H includes Combined Insurance which is reported in the Insurance - Overseas General and Life segments.	
(2)	Excludes the North America A&H business from Combined Insurance which is included in the Life segment.	
(3)	Prior periods on a constant dollar basis.	

Line of Business 2	  	Page 5	

					
	 	ACE Limited	 		
	 	Consolidating Statement of Operations	 		
	 	Three months ended December 31, 2010 and 2009	 		
	 	(in millions of U.S. dollars)	 		
	 	(Unaudited)	 		

 	  	Insurance -
North
American	 	 	Insurance -
Overseas
General	 	 	Global
Reinsurance	 	 	Corporate
& Other	 	 	Consolidated
Excluding
Life Segment	 	 	Life	 	 	ACE
Consolidated	 	
December 31, 2010	  				 				 				 				 				 				 				
Gross premiums written	  	$	2,256	  	 	$	1,750	  	 	$	146	  	 	$	—  	  	 	$	4,152	  	 	$	413	  	 	$	4,565	  	
Net premiums written	  	 	1,519	  	 	 	1,353	  	 	 	143	  	 	 	—  	  	 	 	3,015	  	 	 	407	  	 	 	3,422	  	
Net premiums earned	  	 	1,511	  	 	 	1,405	  	 	 	268	  	 	 	—  	  	 	 	3,184	  	 	 	388	  	 	 	3,572	  	
Losses and loss expenses	  	 	1,030	  	 	 	697	  	 	 	127	  	 	 	—  	  	 	 	1,854	  	 	 	117	  	 	 	1,971	  	
Policy benefits	  	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	90	  	 	 	90	  	
Policy acquisition costs	  	 	178	  	 	 	346	  	 	 	51	  	 	 	—  	  	 	 	575	  	 	 	65	  	 	 	640	  	
Administrative expenses	  	 	154	  	 	 	227	  	 	 	14	  	 	 	50	  	 	 	445	  	 	 	57	  	 	 	502	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Underwriting income (loss)	  	 	149	  	 	 	135	  	 	 	76	  	 	 	(50	) 	 	 	310	  	 	 	59	  	 	 	369	  	
								
Net investment income	  	 	286	  	 	 	128	  	 	 	75	  	 	 	—  	  	 	 	489	  	 	 	43	  	 	 	532	  	
Net realized gains (losses)	  	 	254	  	 	 	21	  	 	 	24	  	 	 	1	  	 	 	300	  	 	 	5	  	 	 	305	  	
Interest expense	  	 	3	  	 	 	1	  	 	 	—  	  	 	 	55	  	 	 	59	  	 	 	3	  	 	 	62	  	
Other income (expense)	  	 	1	  	 	 	8	  	 	 	7	  	 	 	(17	) 	 	 	(1	) 	 	 	(9	) 	 	 	(10	) 	
Income tax expense (benefit)	  	 	114	  	 	 	37	  	 	 	11	  	 	 	(45	) 	 	 	117	  	 	 	16	  	 	 	133	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income (loss)	  	 	573	  	 	 	254	  	 	 	171	  	 	 	(76	) 	 	 	922	  	 	 	79	  	 	 	1,001	  	
								
Net realized gains (losses)	  	 	254	  	 	 	21	  	 	 	24	  	 	 	1	  	 	 	300	  	 	 	5	  	 	 	305	  	
Net realized gains (losses) in other income (expense)	  	 	3	  	 	 	7	  	 	 	6	  	 	 	—  	  	 	 	16	  	 	 	1	  	 	 	17	  	
Tax expense (benefit) on net realized gains (losses)	  	 	14	  	 	 	3	  	 	 	—  	  	 	 	1	  	 	 	18	  	 	 	5	  	 	 	23	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income (loss) excluding net realized gains (losses) (1)	  	$	330	  	 	$	229	  	 	$	141	  	 	$	(76	) 	 	$	624	  	 	$	78	  	 	$	702	  	

December 31, 2009	  				 				 				 				 				 				 				
Gross premiums written	  	$	2,196	  	 	$	1,752	  	 	$	162	  	 	$	—  	  	 	$	4,110	  	 	$	397	  	 	$	4,507	  	
Net premiums written	  	 	1,421	  	 	 	1,350	  	 	 	144	  	 	 	—  	  	 	 	2,915	  	 	 	390	  	 	 	3,305	  	
Net premiums earned	  	 	1,365	  	 	 	1,400	  	 	 	253	  	 	 	—  	  	 	 	3,018	  	 	 	369	  	 	 	3,387	  	
Losses and loss expenses	  	 	959	  	 	 	718	  	 	 	107	  	 	 	—  	  	 	 	1,784	  	 	 	116	  	 	 	1,900	  	
Policy benefits	  	 	—  	  	 	 	1	  	 	 	—  	  	 	 	—  	  	 	 	1	  	 	 	68	  	 	 	69	  	
Policy acquisition costs	  	 	123	  	 	 	333	  	 	 	48	  	 	 	—  	  	 	 	504	  	 	 	55	  	 	 	559	  	
Administrative expenses	  	 	139	  	 	 	214	  	 	 	14	  	 	 	49	  	 	 	416	  	 	 	70	  	 	 	486	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Underwriting income (loss)	  	 	144	  	 	 	134	  	 	 	84	  	 	 	(49	) 	 	 	313	  	 	 	60	  	 	 	373	  	
								
Net investment income	  	 	278	  	 	 	124	  	 	 	68	  	 	 	(2	) 	 	 	468	  	 	 	44	  	 	 	512	  	
Net realized gains (losses)	  	 	252	  	 	 	20	  	 	 	30	  	 	 	(9	) 	 	 	293	  	 	 	80	  	 	 	373	  	
Interest expense	  	 	1	  	 	 	—  	  	 	 	—  	  	 	 	55	  	 	 	56	  	 	 	—  	  	 	 	56	  	
Other income (expense)	  	 	(27	) 	 	 	(8	) 	 	 	(2	) 	 	 	(3	) 	 	 	(40	) 	 	 	(1	) 	 	 	(41	) 	
Income tax expense (benefit)	  	 	165	  	 	 	55	  	 	 	8	  	 	 	(31	) 	 	 	197	  	 	 	11	  	 	 	208	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income (loss)	  	 	481	  	 	 	215	  	 	 	172	  	 	 	(87	) 	 	 	781	  	 	 	172	  	 	 	953	  	
								
Net realized gains (losses)	  	 	252	  	 	 	20	  	 	 	30	  	 	 	(9	) 	 	 	293	  	 	 	80	  	 	 	373	  	
Net realized gains (losses) in other income (expense)	  	 	(26	) 	 	 	(2	) 	 	 	(4	) 	 	 	(1	) 	 	 	(33	) 	 	 	2	  	 	 	(31	) 	
Tax expense (benefit) on net realized gains (losses)	  	 	63	  	 	 	10	  	 	 	—  	  	 	 	(1	) 	 	 	72	  	 	 	—  	  	 	 	72	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income (loss) excluding net realized gains (losses) (1)	  	$	318	  	 	$	207	  	 	$	146	  	 	$	(78	) 	 	$	593	  	 	$	90	  	 	$	683	  	

(1)	See Non-GAAP Financial Measures.	

Segment 2010 Qtr	  	Page 6	

					
	 	ACE Limited	 		
	 	Consolidating Statement of Operations	 		
	 	Year ended December 31, 2010 and 2009	 		
	 	(in millions of U.S. dollars)	 		
	 	(Unaudited)	 		

 	  	Insurance -
North
American	 	 	Insurance -
Overseas
General	 	 	Global
Reinsurance	 	 	Corporate
& Other	 	 	Consolidated
Excluding
Life Segment	 	 	Life	 	 	ACE
Consolidated	 	
December 31, 2010	  				 				 				 				 				 				 				
Gross premiums written	  	$	9,794	  	 	$	6,992	  	 	$	1,146	  	 	$	—  	  	 	$	17,932	  	 	$	1,579	  	 	$	19,511	  	
Net premiums written	  	 	5,797	  	 	 	5,280	  	 	 	1,075	  	 	 	—  	  	 	 	12,152	  	 	 	1,556	  	 	 	13,708	  	
Net premiums earned	  	 	5,651	  	 	 	5,240	  	 	 	1,071	  	 	 	—  	  	 	 	11,962	  	 	 	1,542	  	 	 	13,504	  	
Losses and loss expenses	  	 	3,918	  	 	 	2,647	  	 	 	518	  	 	 	—  	  	 	 	7,083	  	 	 	496	  	 	 	7,579	  	
Policy benefits	  	 	—  	  	 	 	4	  	 	 	—  	  	 	 	—  	  	 	 	4	  	 	 	353	  	 	 	357	  	
Policy acquisition costs	  	 	625	  	 	 	1,251	  	 	 	204	  	 	 	—  	  	 	 	2,080	  	 	 	257	  	 	 	2,337	  	
Administrative expenses	  	 	561	  	 	 	840	  	 	 	55	  	 	 	174	  	 	 	1,630	  	 	 	228	  	 	 	1,858	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Underwriting income (loss)	  	 	547	  	 	 	498	  	 	 	294	  	 	 	(174	) 	 	 	1,165	  	 	 	208	  	 	 	1,373	  	
								
Net investment income	  	 	1,138	  	 	 	475	  	 	 	288	  	 	 	(3	) 	 	 	1,898	  	 	 	172	  	 	 	2,070	  	
Net realized gains (losses)	  	 	417	  	 	 	123	  	 	 	93	  	 	 	(9	) 	 	 	624	  	 	 	(192	) 	 	 	432	  	
Interest expense	  	 	9	  	 	 	1	  	 	 	—  	  	 	 	211	  	 	 	221	  	 	 	3	  	 	 	224	  	
Other income (expense)	  	 	22	  	 	 	13	  	 	 	23	  	 	 	(22	) 	 	 	36	  	 	 	(20	) 	 	 	16	  	
Income tax expense (benefit)	  	 	436	  	 	 	173	  	 	 	42	  	 	 	(154	) 	 	 	497	  	 	 	62	  	 	 	559	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income (loss)	  	 	1,679	  	 	 	935	  	 	 	656	  	 	 	(265	) 	 	 	3,005	  	 	 	103	  	 	 	3,108	  	
								
Net realized gains (losses)	  	 	417	  	 	 	123	  	 	 	93	  	 	 	(9	) 	 	 	624	  	 	 	(192	) 	 	 	432	  	
Net realized gains (losses) in other income (expense)	  	 	24	  	 	 	22	  	 	 	21	  	 	 	—  	  	 	 	67	  	 	 	2	  	 	 	69	  	
Tax expense (benefit) on net realized gains (losses)	  	 	26	  	 	 	23	  	 	 	1	  	 	 	(7	) 	 	 	43	  	 	 	7	  	 	 	50	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income (loss) excluding net realized gains (losses) (1)	  	$	1,264	  	 	$	813	  	 	$	543	  	 	$	(263	) 	 	$	2,357	  	 	$	300	  	 	$	2,657	  	

December 31, 2009	  				 				 				 				 				 				 				
Gross premiums written	  	$	9,668	  	 	$	6,832	  	 	$	1,115	  	 	$	—  	  	 	$	17,615	  	 	$	1,549	  	 	$	19,164	  	
Net premiums written	  	 	5,641	  	 	 	5,145	  	 	 	1,038	  	 	 	—  	  	 	 	11,824	  	 	 	1,475	  	 	 	13,299	  	
Net premiums earned	  	 	5,684	  	 	 	5,147	  	 	 	979	  	 	 	—  	  	 	 	11,810	  	 	 	1,430	  	 	 	13,240	  	
Losses and loss expenses	  	 	4,013	  	 	 	2,597	  	 	 	330	  	 	 	—  	  	 	 	6,940	  	 	 	482	  	 	 	7,422	  	
Policy benefits	  	 	—  	  	 	 	4	  	 	 	—  	  	 	 	—  	  	 	 	4	  	 	 	321	  	 	 	325	  	
Policy acquisition costs	  	 	517	  	 	 	1,202	  	 	 	195	  	 	 	—  	  	 	 	1,914	  	 	 	216	  	 	 	2,130	  	
Administrative expenses	  	 	572	  	 	 	783	  	 	 	55	  	 	 	158	  	 	 	1,568	  	 	 	243	  	 	 	1,811	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Underwriting income (loss)	  	 	582	  	 	 	561	  	 	 	399	  	 	 	(158	) 	 	 	1,384	  	 	 	168	  	 	 	1,552	  	
								
Net investment income	  	 	1,094	  	 	 	479	  	 	 	278	  	 	 	4	  	 	 	1,855	  	 	 	176	  	 	 	2,031	  	
Net realized gains (losses)	  	 	10	  	 	 	(20	) 	 	 	(17	) 	 	 	(154	) 	 	 	(181	) 	 	 	(15	) 	 	 	(196	) 	
Interest expense	  	 	1	  	 	 	—  	  	 	 	—  	  	 	 	224	  	 	 	225	  	 	 	—  	  	 	 	225	  	
Other income (expense)	  	 	(36	) 	 	 	(20	) 	 	 	(2	) 	 	 	(25	) 	 	 	(83	) 	 	 	(2	) 	 	 	(85	) 	
Income tax expense (benefit)	  	 	384	  	 	 	186	  	 	 	46	  	 	 	(136	) 	 	 	480	  	 	 	48	  	 	 	528	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income (loss)	  	 	1,265	  	 	 	814	  	 	 	612	  	 	 	(421	) 	 	 	2,270	  	 	 	279	  	 	 	2,549	  	
								
Net realized gains (losses)	  	 	10	  	 	 	(20	) 	 	 	(17	) 	 	 	(154	) 	 	 	(181	) 	 	 	(15	) 	 	 	(196	) 	
Net realized gains (losses) in other income (expense)	  	 	(31	) 	 	 	4	  	 	 	(4	) 	 	 	(41	) 	 	 	(72	) 	 	 	9	  	 	 	(63	) 	
Tax expense (benefit) on net realized gains (losses)	  	 	(41	) 	 	 	9	  	 	 	—  	  	 	 	(15	) 	 	 	(47	) 	 	 	(2	) 	 	 	(49	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income (loss) excluding net realized gains (losses) (1)	  	$	1,245	  	 	$	839	  	 	$	633	  	 	$	(241	) 	 	$	2,476	  	 	$	283	  	 	$	2,759	  	

(1)	See Non-GAAP Financial Measures.	

Segment 2010 YTD	  	Page 7	

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

Insurance - North American	  	4Q-10	 	 	3Q-10	 	 	2Q-10	 	 	1Q-10	 	 	4Q-09	 	 	Full Year
2010	 	 	Full Year
2009	 	
								
Gross premiums written	  	$	2,256	  	 	$	2,759	  	 	$	2,649	  	 	$	2,130	  	 	$	2,196	  	 	$	9,794	  	 	$	9,668	  	
Net premiums written	  	 	1,519	  	 	 	1,445	  	 	 	1,438	  	 	 	1,395	  	 	 	1,421	  	 	 	5,797	  	 	 	5,641	  	
Net premiums earned	  	 	1,511	  	 	 	1,444	  	 	 	1,326	  	 	 	1,370	  	 	 	1,365	  	 	 	5,651	  	 	 	5,684	  	
Losses and loss expenses	  	 	1,030	  	 	 	1,026	  	 	 	924	  	 	 	938	  	 	 	959	  	 	 	3,918	  	 	 	4,013	  	
Policy acquisition costs	  	 	178	  	 	 	165	  	 	 	126	  	 	 	156	  	 	 	123	  	 	 	625	  	 	 	517	  	
Administrative expenses	  	 	154	  	 	 	112	  	 	 	147	  	 	 	148	  	 	 	139	  	 	 	561	  	 	 	572	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Underwriting income	  	 	149	  	 	 	141	  	 	 	129	  	 	 	128	  	 	 	144	  	 	 	547	  	 	 	582	  	
								
Net investment income	  	 	286	  	 	 	287	  	 	 	287	  	 	 	278	  	 	 	278	  	 	 	1,138	  	 	 	1,094	  	
Net realized gains (losses)	  	 	254	  	 	 	(2	) 	 	 	85	  	 	 	80	  	 	 	252	  	 	 	417	  	 	 	10	  	
Interest expense	  	 	3	  	 	 	6	  	 	 	—  	  	 	 	—  	  	 	 	1	  	 	 	9	  	 	 	1	  	
Other income (expense)	  	 	1	  	 	 	20	  	 	 	(4	) 	 	 	5	  	 	 	(27	) 	 	 	22	  	 	 	(36	) 	
Income tax expense	  	 	114	  	 	 	108	  	 	 	110	  	 	 	104	  	 	 	165	  	 	 	436	  	 	 	384	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income	  	 	573	  	 	 	332	  	 	 	387	  	 	 	387	  	 	 	481	  	 	 	1,679	  	 	 	1,265	  	
								
Net realized gains (losses)	  	 	254	  	 	 	(2	) 	 	 	85	  	 	 	80	  	 	 	252	  	 	 	417	  	 	 	10	  	
Net realized gains (losses) in other income (expense)	  	 	3	  	 	 	20	  	 	 	1	  	 	 	—  	  	 	 	(26	) 	 	 	24	  	 	 	(31	) 	
Tax expense (benefit) on net realized gains (losses)	  	 	14	  	 	 	(2	) 	 	 	12	  	 	 	2	  	 	 	63	  	 	 	26	  	 	 	(41	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income excluding net realized gains (losses) (1)	  	$	330	  	 	$	312	  	 	$	313	  	 	$	309	  	 	$	318	  	 	$	1,264	  	 	$	1,245	  	

Combined ratio	  				 				 				 				 				 				 				
Loss and loss expense ratio	  	 	68.1	% 	 	 	71.0	% 	 	 	69.7	% 	 	 	68.5	% 	 	 	70.3	% 	 	 	69.3	% 	 	 	70.6	% 	
Policy acquisition cost ratio	  	 	11.8	% 	 	 	11.4	% 	 	 	9.5	% 	 	 	11.4	% 	 	 	9.0	% 	 	 	11.1	% 	 	 	9.1	% 	
Administrative expense ratio	  	 	10.2	% 	 	 	7.8	% 	 	 	11.1	% 	 	 	10.8	% 	 	 	10.2	% 	 	 	9.9	% 	 	 	10.1	% 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Combined ratio	  	 	90.1	% 	 	 	90.2	% 	 	 	90.3	% 	 	 	90.7	% 	 	 	89.5	% 	 	 	90.3	% 	 	 	89.8	% 	

Large losses and other items (before tax)	  				 				 				 				 				 				 				
Reinstatement premiums (expensed) collected	  	$	1	  	 	$	1	  	 	$	(3	) 	 	$	(3	) 	 	$	—  	  	 	$	(4	) 	 	$	—  	  	
Catastrophe losses	  	$	21	  	 	$	17	  	 	$	53	  	 	$	52	  	 	$	10	  	 	$	143	  	 	$	58	  	
Prior period development - unfavorable (favorable) (2)	  	$	46	  	 	$	(35	) 	 	$	(73	) 	 	$	(45	) 	 	$	(50	) 	 	$	(107	) 	 	$	(179	) 	
								
Loss and loss expense ratio excluding catastophe losses and prior period development	  	 	63.7	% 	 	 	72.4	% 	 	 	71.0	% 	 	 	71.1	% 	 	 	73.3	% 	 	 	69.4	% 	 	 	72.7	% 	
								
% Change versus prior year period	  				 				 				 				 				 				 				
Net premiums written	  	 	7	% 	 	 	5	% 	 	 	-1	% 	 	 	0	% 	 	 	9	% 	 	 	3	% 	 	 	0	% 	
Net premiums earned	  	 	11	% 	 	 	-2	% 	 	 	-6	% 	 	 	-5	% 	 	 	-1	% 	 	 	-1	% 	 	 	0	% 	
								
Other ratios	  				 				 				 				 				 				 				
Net premiums written/gross premiums written	  	 	67	% 	 	 	52	% 	 	 	54	% 	 	 	65	% 	 	 	65	% 	 	 	59	% 	 	 	58	% 	
 
(1)	See Non-GAAP Financial Measures.	
(2)	For Q1 2010, prior period favorable development is net of $45 million for the annual crop insurance profit-sharing commission that is included in the expense ratio.	

Insurance-North American	  	Page 8	

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

Insurance - Overseas General	  	4Q-10	 	 	3Q-10	 	 	2Q-10	 	 	1Q-10	 	 	4Q-09	 	 	Full Year
2010	 	 	Full Year
2009	 	
								
Gross premiums written	  	$	1,750	  	 	$	1,584	  	 	$	1,787	  	 	$	1,871	  	 	$	1,752	  	 	$	6,992	  	 	$	6,832	  	
Net premiums written	  	 	1,353	  	 	 	1,205	  	 	 	1,302	  	 	 	1,420	  	 	 	1,350	  	 	 	5,280	  	 	 	5,145	  	
Net premiums earned	  	 	1,405	  	 	 	1,321	  	 	 	1,263	  	 	 	1,251	  	 	 	1,400	  	 	 	5,240	  	 	 	5,147	  	
Losses and loss expenses	  	 	697	  	 	 	605	  	 	 	644	  	 	 	701	  	 	 	718	  	 	 	2,647	  	 	 	2,597	  	
Policy benefits	  	 	—  	  	 	 	—  	  	 	 	1	  	 	 	3	  	 	 	1	  	 	 	4	  	 	 	4	  	
Policy acquisition costs	  	 	346	  	 	 	326	  	 	 	296	  	 	 	283	  	 	 	333	  	 	 	1,251	  	 	 	1,202	  	
Administrative expenses	  	 	227	  	 	 	204	  	 	 	207	  	 	 	202	  	 	 	214	  	 	 	840	  	 	 	783	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Underwriting income	  	 	135	  	 	 	186	  	 	 	115	  	 	 	62	  	 	 	134	  	 	 	498	  	 	 	561	  	
								
Net investment income	  	 	128	  	 	 	118	  	 	 	115	  	 	 	114	  	 	 	124	  	 	 	475	  	 	 	479	  	
Net realized gains (losses)	  	 	21	  	 	 	32	  	 	 	48	  	 	 	22	  	 	 	20	  	 	 	123	  	 	 	(20	) 	
Interest expense	  	 	1	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	1	  	 	 	—  	  	
Other income (expense)	  	 	8	  	 	 	4	  	 	 	3	  	 	 	(2	) 	 	 	(8	) 	 	 	13	  	 	 	(20	) 	
Income tax expense	  	 	37	  	 	 	63	  	 	 	59	  	 	 	14	  	 	 	55	  	 	 	173	  	 	 	186	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income	  	 	254	  	 	 	277	  	 	 	222	  	 	 	182	  	 	 	215	  	 	 	935	  	 	 	814	  	
								
Net realized gains (losses)	  	 	21	  	 	 	32	  	 	 	48	  	 	 	22	  	 	 	20	  	 	 	123	  	 	 	(20	) 	
Net realized gains (losses) in other income (expense)	  	 	7	  	 	 	9	  	 	 	1	  	 	 	5	  	 	 	(2	) 	 	 	22	  	 	 	4	  	
Tax expense (benefit) on net realized gains (losses)	  	 	3	  	 	 	6	  	 	 	13	  	 	 	1	  	 	 	10	  	 	 	23	  	 	 	9	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income excluding net realized gains (losses) (1)	  	$	229	  	 	$	242	  	 	$	186	  	 	$	156	  	 	$	207	  	 	$	813	  	 	$	839	  	

Combined ratio	  				 				 				 				 				 				 				
Loss and loss expense ratio	  	 	49.6	% 	 	 	45.8	% 	 	 	51.0	% 	 	 	56.3	% 	 	 	51.3	% 	 	 	50.6	% 	 	 	50.5	% 	
Policy acquisition cost ratio	  	 	24.6	% 	 	 	24.7	% 	 	 	23.5	% 	 	 	22.6	% 	 	 	23.7	% 	 	 	23.9	% 	 	 	23.3	% 	
Administrative expense ratio	  	 	16.1	% 	 	 	15.5	% 	 	 	16.4	% 	 	 	16.1	% 	 	 	15.3	% 	 	 	16.0	% 	 	 	15.2	% 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Combined ratio	  	 	90.3	% 	 	 	86.0	% 	 	 	90.9	% 	 	 	95.0	% 	 	 	90.3	% 	 	 	90.5	% 	 	 	89.0	% 	

Large losses and other items (before tax)	  				 				 				 				 				 				 				
Reinstatement premiums (expensed) collected	  	$	—  	  	 	$	(7	) 	 	$	(2	) 	 	$	(24	) 	 	$	—  	  	 	$	(33	) 	 	$	(1	) 	
Catastrophe losses	  	$	25	  	 	$	25	  	 	$	18	  	 	$	64	  	 	$	10	  	 	$	132	  	 	$	51	  	
Prior period development - unfavorable (favorable)	  	$	(91	) 	 	$	(117	) 	 	$	(45	) 	 	$	(37	) 	 	$	(86	) 	 	$	(290	) 	 	$	(255	) 	
Loss and loss expense ratio excluding catastophe losses and prior period development	  	 	54.4	% 	 	 	52.5	% 	 	 	53.0	% 	 	 	53.1	% 	 	 	56.7	% 	 	 	53.3	% 	 	 	54.5	% 	
								
% Change versus prior year period	  				 				 				 				 				 				 				
Net premiums written as reported	  	 	0	% 	 	 	0	% 	 	 	3	% 	 	 	7	% 	 	 	8	% 	 	 	3	% 	 	 	-4	% 	
Net premiums earned as reported	  	 	0	% 	 	 	0	% 	 	 	1	% 	 	 	6	% 	 	 	12	% 	 	 	2	% 	 	 	-4	% 	
								
Net premiums written constant $	  	 	1	% 	 	 	1	% 	 	 	-1	% 	 	 	0	% 	 	 	0	% 	 	 	0	% 	 	 	3	% 	
Net premiums earned constant $	  	 	1	% 	 	 	2	% 	 	 	-2	% 	 	 	-3	% 	 	 	3	% 	 	 	0	% 	 	 	3	% 	
Underwriting income constant $	  				 				 				 				 	$	130	  	 				 	$	561	  	
Income excluding net realized gains (losses), constant $	  	 				 				 				 	$	201	  	 				 	$	841	  	
								
Other ratios	  				 				 				 				 				 				 				
Net premiums written/gross premiums written	  	 	77	% 	 	 	76	% 	 	 	73	% 	 	 	76	% 	 	 	77	% 	 	 	76	% 	 	 	75	% 	
 
(1)	See Non-GAAP Financial Measures.	

Insurance-Overseas General	  	Page 9	

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

Global Reinsurance	  	4Q-10	 	 	3Q-10	 	 	2Q-10	 	 	1Q-10	 	 	4Q-09	 	 	Full Year
2010	 	 	Full Year
2009	 	
								
Gross premiums written	  	$	146	  	 	$	281	  	 	$	320	  	 	$	399	  	 	$	162	  	 	$	1,146	  	 	$	1,115	  	
Net premiums written	  	 	143	  	 	 	272	  	 	 	289	  	 	 	371	  	 	 	144	  	 	 	1,075	  	 	 	1,038	  	
Net premiums earned	  	 	268	  	 	 	271	  	 	 	256	  	 	 	276	  	 	 	253	  	 	 	1,071	  	 	 	979	  	
Losses and loss expenses	  	 	127	  	 	 	137	  	 	 	103	  	 	 	151	  	 	 	107	  	 	 	518	  	 	 	330	  	
Policy acquisition costs	  	 	51	  	 	 	51	  	 	 	48	  	 	 	54	  	 	 	48	  	 	 	204	  	 	 	195	  	
Administrative expenses	  	 	14	  	 	 	14	  	 	 	15	  	 	 	12	  	 	 	14	  	 	 	55	  	 	 	55	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Underwriting income	  	 	76	  	 	 	69	  	 	 	90	  	 	 	59	  	 	 	84	  	 	 	294	  	 	 	399	  	
								
Net investment income	  	 	75	  	 	 	71	  	 	 	73	  	 	 	69	  	 	 	68	  	 	 	288	  	 	 	278	  	
Net realized gains (losses)	  	 	24	  	 	 	10	  	 	 	28	  	 	 	31	  	 	 	30	  	 	 	93	  	 	 	(17	) 	
Other income (expense)	  	 	7	  	 	 	10	  	 	 	2	  	 	 	4	  	 	 	(2	) 	 	 	23	  	 	 	(2	) 	
Income tax expense	  	 	11	  	 	 	12	  	 	 	9	  	 	 	10	  	 	 	8	  	 	 	42	  	 	 	46	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income	  	 	171	  	 	 	148	  	 	 	184	  	 	 	153	  	 	 	172	  	 	 	656	  	 	 	612	  	
								
Net realized gains (losses)	  	 	24	  	 	 	10	  	 	 	28	  	 	 	31	  	 	 	30	  	 	 	93	  	 	 	(17	) 	
Net realized gains (losses) in other income (expense)	  	 	6	  	 	 	10	  	 	 	1	  	 	 	4	  	 	 	(4	) 	 	 	21	  	 	 	(4	) 	
Tax expense (benefit) on net realized gains (losses)	  	 	—  	  	 	 	1	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	1	  	 	 	—  	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income excluding net realized gains (losses) (1)	  	$	141	  	 	$	129	  	 	$	155	  	 	$	118	  	 	$	146	  	 	$	543	  	 	$	633	  	

Combined ratio	  				 				 				 				 				 				 				
Loss and loss expense ratio	  	 	47.5	% 	 	 	50.4	% 	 	 	40.4	% 	 	 	54.7	% 	 	 	42.4	% 	 	 	48.4	% 	 	 	33.7	% 	
Policy acquisition cost ratio	  	 	19.0	% 	 	 	19.0	% 	 	 	18.5	% 	 	 	19.6	% 	 	 	19.1	% 	 	 	19.0	% 	 	 	19.9	% 	
Administrative expense ratio	  	 	5.2	% 	 	 	4.9	% 	 	 	5.8	% 	 	 	4.5	% 	 	 	5.6	% 	 	 	5.1	% 	 	 	5.6	% 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Combined ratio	  	 	71.7	% 	 	 	74.3	% 	 	 	64.7	% 	 	 	78.8	% 	 	 	67.1	% 	 	 	72.5	% 	 	 	59.2	% 	

Large losses and other items (before tax)	  				 				 				 				 				 				 				
Reinstatement premiums (expensed) collected	  	$	—  	  	 	$	—  	  	 	$	—  	  	 	$	2	  	 	$	—  	  	 	$	2	  	 	$	2	  	
Catastrophe losses	  	$	5	  	 	$	49	  	 	$	5	  	 	$	32	  	 	$	3	  	 	$	91	  	 	$	28	  	
Prior period development - unfavorable (favorable)	  	$	(12	) 	 	$	(49	) 	 	$	(31	) 	 	$	(14	) 	 	$	(11	) 	 	$	(106	) 	 	$	(142	) 	
Loss and loss expense ratio excluding catastophe losses and prior period development	  	 	50.3	% 	 	 	50.2	% 	 	 	50.9	% 	 	 	48.4	% 	 	 	45.5	% 	 	 	50.0	% 	 	 	45.4	% 	
								
% Change versus prior year period	  				 				 				 				 				 				 				
Net premiums written	  	 	-1	% 	 	 	32	% 	 	 	-12	% 	 	 	3	% 	 	 	14	% 	 	 	4	% 	 	 	14	% 	
Net premiums earned	  	 	6	% 	 	 	10	% 	 	 	6	% 	 	 	16	% 	 	 	5	% 	 	 	9	% 	 	 	-4	% 	
								
Other ratios	  				 				 				 				 				 				 				
Net premiums written/gross premiums written	  	 	98	% 	 	 	97	% 	 	 	90	% 	 	 	93	% 	 	 	89	% 	 	 	94	% 	 	 	93	% 	
 
(1)	See Non-GAAP Financial Measures.	

Global Reinsurance	  	Page 10	

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

Life	  	4Q-10	 	 	3Q-10	 	 	2Q-10	 	 	1Q-10	 	 	4Q-09	 	 	Full Year
2010	 	 	Full Year
2009	 	
								
Gross premiums written (1)	  	$	413	  	 	$	378	  	 	$	398	  	 	$	390	  	 	$	397	  	 	$	1,579	  	 	$	1,549	  	
Net premiums written	  	 	407	  	 	 	373	  	 	 	391	  	 	 	385	  	 	 	390	  	 	 	1,556	  	 	 	1,475	  	
Net premiums earned	  	 	388	  	 	 	386	  	 	 	388	  	 	 	380	  	 	 	369	  	 	 	1,542	  	 	 	1,430	  	
Losses and loss expenses	  	 	117	  	 	 	119	  	 	 	129	  	 	 	131	  	 	 	116	  	 	 	496	  	 	 	482	  	
Policy benefits	  	 	90	  	 	 	93	  	 	 	86	  	 	 	84	  	 	 	68	  	 	 	353	  	 	 	321	  	
Policy acquisition costs	  	 	65	  	 	 	65	  	 	 	66	  	 	 	61	  	 	 	55	  	 	 	257	  	 	 	216	  	
Administrative expenses	  	 	57	  	 	 	59	  	 	 	54	  	 	 	58	  	 	 	70	  	 	 	228	  	 	 	243	  	
Net investment income	  	 	43	  	 	 	43	  	 	 	43	  	 	 	43	  	 	 	44	  	 	 	172	  	 	 	176	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Life underwriting income (2)	  	 	102	  	 	 	93	  	 	 	96	  	 	 	89	  	 	 	104	  	 	 	380	  	 	 	344	  	
								
Net realized gains (losses)	  	 	5	  	 	 	(85	) 	 	 	(155	) 	 	 	43	  	 	 	80	  	 	 	(192	) 	 	 	(15	) 	
Interest expense	  	 	3	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	3	  	 	 	—  	  	
Other income (expense)	  	 	(9	) 	 	 	(5	) 	 	 	(3	) 	 	 	(3	) 	 	 	(1	) 	 	 	(20	) 	 	 	(2	) 	
Income tax expense	  	 	16	  	 	 	16	  	 	 	16	  	 	 	14	  	 	 	11	  	 	 	62	  	 	 	48	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income (loss)	  	 	79	  	 	 	(13	) 	 	 	(78	) 	 	 	115	  	 	 	172	  	 	 	103	  	 	 	279	  	
								
Net realized gains (losses)	  	 	5	  	 	 	(85	) 	 	 	(155	) 	 	 	43	  	 	 	80	  	 	 	(192	) 	 	 	(15	) 	
Net realized gains (losses) in other income (expense)	  	 	1	  	 	 	—  	  	 	 	—  	  	 	 	1	  	 	 	2	  	 	 	2	  	 	 	9	  	
Tax expense (benefit) on net realized gains (losses)	  	 	5	  	 	 	—  	  	 	 	1	  	 	 	1	  	 	 	—  	  	 	 	7	  	 	 	(2	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income excluding net realized gains (losses) (3)	  	$	78	  	 	$	72	  	 	$	78	  	 	$	72	  	 	$	90	  	 	$	300	  	 	$	283	  	

Prior period development - unfavorable (favorable)	  	$	(2	) 	 	$	(4	) 	 	$	(3	) 	 	$	—  	  	 	$	(4	) 	 	 	(9	) 	 	 	(3	) 	
								
Deposits collected on universal life and investment contracts (1)	  	$	93	  	 	$	51	  	 	$	58	  	 	$	55	  	 	$	100	  	 	$	257	  	 	$	404	  	
Fees on universal life and investment contracts (1)	  	$	14	  	 	$	10	  	 	$	11	  	 	$	7	  	 	$	11	  	 	$	42	  	 	$	34	  	
								
% Change versus prior year period	  				 				 				 				 				 				 				
Net premiums written	  	 	4	% 	 	 	0	% 	 	 	7	% 	 	 	11	% 	 	 	5	% 	 	 	5	% 	 	 	23	% 	
Net premiums earned	  	 	5	% 	 	 	7	% 	 	 	7	% 	 	 	13	% 	 	 	3	% 	 	 	8	% 	 	 	22	% 	
 
(1)	Consistent with GAAP, premiums collected on universal life and investment contracts are considered deposits and excluded from revenues. Fees on universal life and investment contracts are revenue for GAAP and have been classified as gross premiums written.	
(2)	We assess the performance of our Life business based on life underwriting income which includes net investment income.	
(3)	See Non-GAAP Financial Measures.	

Life	  	Page 11	

					
	  	ACE Limited	 		
	  	Segment Results - Life Reinsurance	 		
	  	(in millions of U.S. dollars)	 		
	  	(Unaudited)	 		
 
Variable Annuity (VA) Lines
 
Historical Cash Flow Summary by Quarter

Death Benefits (GMDB)	  	4Q-10	 	 	3Q-10	 	 	2Q-10	 	 	1Q-10	 	 	4Q-09	 	 	Full Year
2010	 	 	Full Year
2009	 	
Premium	  	$	27	  	 	$	27	  	 	$	27	  	 	$	28	  	 	$	28	  	 	$	109	  	 	$	108	  	
Less paid claims	  	 	31	  	 	 	33	  	 	 	28	  	 	 	33	  	 	 	33	  	 	 	125	  	 	 	152	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net	  	$	(4	) 	 	$	(6	) 	 	$	(1	) 	 	$	(5	) 	 	$	(5	) 	 	$	(16	) 	 	$	(44	) 	

Guaranteed Living Benefits (Includes GMIB and GMAB)

   	  	4Q-10	 	 	3Q-10	 	 	2Q-10	 	 	1Q-10	 	 	4Q-09	 	 	Full Year
2010	 	 	Full Year
2009	 	
Premium	  	$	41	  	 	$	41	  	 	$	40	  	 	$	40	  	 	$	41	  	 	$	162	  	 	$	162	  	
Less paid claims	  	 	1	  	 	 	1	  	 	 	1	  	 	 	1	  	 	 	1	  	 	 	4	  	 	 	5	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net	  	$	40	  	 	$	40	  	 	$	39	  	 	$	39	  	 	$	40	  	 	$	158	  	 	$	157	  	

Total VA Guaranteed Benefits

   	  	4Q-10	 	 	3Q-10	 	 	2Q-10	 	 	1Q-10	 	 	4Q-09	 	 	Full Year
2010	 	 	Full Year
2009	 	
Premium	  	$	68	  	 	$	68	  	 	$	67	  	 	$	68	  	 	$	69	  	 	$	271	  	 	$	270	  	
Less paid claims	  	 	32	  	 	 	34	  	 	 	29	  	 	 	34	  	 	 	34	  	 	 	129	  	 	 	157	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net	  	$	36	  	 	$	34	  	 	$	38	  	 	$	34	  	 	$	35	  	 	$	142	  	 	$	113	  	

Amounts represent accrued past premium received and claims paid by quarter, split by benefit type.
 
Death Benefits (GMDB)
 
Premiums and claims from VA contracts reinsuring Guaranteed Minimum Death Benefits (GMDB).
 
At current market levels we expect approximately $105 million of claims and $91 million of premium on death benefits over the next 12 months.
 
Guaranteed Living Benefits (Includes GMIB and GMAB)
 
Premiums and claims from VA contracts reinsuring Guaranteed Minimum Income Benefits (GMIB) and Guaranteed Minimum Accumulation Benefits (GMAB), collectively known as Guaranteed Living Benefits.
 
At current market levels we expect approximately $1 million of claims and $149 million of premium on living benefits over the next 12 months.

Variable Annuity	  	Page 12	

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

 	  	Unpaid Losses	 	 	Net Paid  to
Incurred Ratio	 	
 	  	Gross	 	 	Ceded	 	 	Net	 	 			
Balance at December 31, 2008	  	$	37,176	  	 	$	12,935	  	 	$	24,241	  	 				
Losses and loss expenses incurred	  	 	2,454	  	 	 	638	  	 	 	1,816	  	 				
Losses and loss expenses paid	  	 	(2,504	) 	 	 	(762	) 	 	 	(1,742	) 	 	 	96	% 	
Other (incl. foreign exch. revaluation)	  	 	(195	) 	 	 	(57	) 	 	 	(138	) 	 				
	  	 	 	 	 	 	 	 	 	 	 	 	 				
Balance at March 31, 2009	  	$	36,931	  	 	$	12,754	  	 	$	24,177	  	 				
Losses and loss expenses incurred	  	 	2,633	  	 	 	812	  	 	 	1,821	  	 				
Losses and loss expenses paid	  	 	(2,868	) 	 	 	(1,154	) 	 	 	(1,714	) 	 	 	94	% 	
Other (incl. foreign exch. revaluation)	  	 	572	  	 	 	144	  	 	 	428	  	 				
	  	 	 	 	 	 	 	 	 	 	 	 	 				
Balance at June 30, 2009	  	$	37,268	  	 	$	12,556	  	 	$	24,712	  	 				
Losses and loss expenses incurred	  	 	3,268	  	 	 	1,383	  	 	 	1,885	  	 				
Losses and loss expenses paid	  	 	(2,972	) 	 	 	(1,235	) 	 	 	(1,737	) 	 	 	92	% 	
Other (incl. foreign exch. revaluation)	  	 	307	  	 	 	96	  	 	 	211	  	 				
	  	 	 	 	 	 	 	 	 	 	 	 	 				
Balance at September 30, 2009	  	$	37,871	  	 	$	12,800	  	 	$	25,071	  	 				
Losses and loss expenses incurred	  	 	2,786	  	 	 	886	  	 	 	1,900	  	 				
Losses and loss expenses paid	  	 	(2,749	) 	 	 	(994	) 	 	 	(1,755	) 	 	 	92	% 	
Other (incl. foreign exch. revaluation)	  	 	(125	) 	 	 	53	  	 	 	(178	) 	 				
	  	 	 	 	 	 	 	 	 	 	 	 	 				
Balance at December 31, 2009	  	$	37,783	  	 	$	12,745	  	 	$	25,038	  	 				
Losses and loss expenses incurred	  	 	2,544	  	 	 	623	  	 	 	1,921	  	 				
Losses and loss expenses paid	  	 	(2,491	) 	 	 	(729	) 	 	 	(1,762	) 	 	 	92	% 	
Other (incl. foreign exch. revaluation)	  	 	(285	) 	 	 	(79	) 	 	 	(206	) 	 				
	  	 	 	 	 	 	 	 	 	 	 	 	 				
Balance at March 31, 2010	  	$	37,551	  	 	$	12,560	  	 	$	24,991	  	 				
Losses and loss expenses incurred	  	 	2,725	  	 	 	925	  	 	 	1,800	  	 				
Losses and loss expenses paid	  	 	(2,824	) 	 	 	(976	) 	 	 	(1,848	) 	 	 	103	% 	
Other (incl. foreign exch. revaluation)	  	 	(390	) 	 	 	(135	) 	 	 	(255	) 	 				
	  	 	 	 	 	 	 	 	 	 	 	 	 				
Balance at June 30, 2010	  	$	37,062	  	 	$	12,374	  	 	$	24,688	  	 				
Losses and loss expenses incurred	  	 	3,236	  	 	 	1,349	  	 	 	1,887	  	 				
Losses and loss expenses paid	  	 	(3,010	) 	 	 	(1,139	) 	 	 	(1,871	) 	 	 	99	% 	
Other (incl. foreign exch. revaluation)	  	 	454	  	 	 	166	  	 	 	288	  	 				
	  	 	 	 	 	 	 	 	 	 	 	 	 				
Balance at September 30, 2010	  	$	37,742	  	 	$	12,750	  	 	$	24,992	  	 				
Losses and loss expenses incurred	  	 	2,350	  	 	 	379	  	 	 	1,971	  	 				
Losses and loss expenses paid	  	 	(2,954	) 	 	 	(1,022	) 	 	 	(1,932	) 	 	 	98	% 	
Other (incl. foreign exch. revaluation)	  	 	253	  	 	 	42	  	 	 	211	  	 				
	  	 	 	 	 	 	 	 	 	 	 	 	 				
Balance at December 31, 2010	  	$	37,391	  	 	$	12,149	  	 	$	25,242	  	 				

Add net recoverable on paid losses	  	 	—  	  	 	 	722	  	 	 	(722	) 	 				
	  	 	 	 	 	 	 	 	 	 	 	 	 				
Balance including net recoverable on paid losses	  	$	37,391	  	 	$	12,871	  	 	$	24,520	  	 				

			
Loss Reserve Rollforward	  	Page 13	

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

 	  	December 31
2010	 	 	September 30
2010	 	 	June 30
2010	 	 	March 31
2010	 	 	December 31
2009	 	
Reinsurance recoverable on paid losses and loss expenses	  				 				 				 				 				
Active operations	  	$	579	  	 	$	571	  	 	$	550	  	 	$	605	  	 	$	703	  	
Brandywine	  	 	281	  	 	 	278	  	 	 	294	  	 	 	284	  	 	 	289	  	
Westchester Run-off	  	 	26	  	 	 	31	  	 	 	31	  	 	 	36	  	 	 	36	  	
Other Run-off	  	 	12	  	 	 	12	  	 	 	13	  	 	 	13	  	 	 	13	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total	  	$	898	  	 	$	892	  	 	$	888	  	 	$	938	  	 	$	1,041	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Reinsurance recoverable on unpaid losses and loss expenses	  				 				 				 				 				
Active operations	  	$	9,956	  	 	$	10,638	  	 	$	10,212	  	 	$	10,250	  	 	$	10,316	  	
Brandywine	  	 	2,024	  	 	 	1,998	  	 	 	2,084	  	 	 	2,197	  	 	 	2,268	  	
Westchester Run-off	  	 	468	  	 	 	464	  	 	 	473	  	 	 	474	  	 	 	482	  	
Other Run-off	  	 	55	  	 	 	23	  	 	 	27	  	 	 	30	  	 	 	70	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total	  	$	12,503	  	 	$	13,123	  	 	$	12,796	  	 	$	12,951	  	 	$	13,136	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Gross reinsurance recoverable	  				 				 				 				 				
Active operations	  	$	10,535	  	 	$	11,209	  	 	$	10,762	  	 	$	10,855	  	 	$	11,019	  	
Brandywine	  	 	2,305	  	 	 	2,276	  	 	 	2,378	  	 	 	2,481	  	 	 	2,557	  	
Westchester Run-off	  	 	494	  	 	 	495	  	 	 	504	  	 	 	510	  	 	 	518	  	
Other Run-off	  	 	67	  	 	 	35	  	 	 	40	  	 	 	43	  	 	 	83	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total	  	$	13,401	  	 	$	14,015	  	 	$	13,684	  	 	$	13,889	  	 	$	14,177	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Provision for uncollectible reinsurance	  				 				 				 				 				
Active operations	  	$	(324	) 	 	$	(326	) 	 	$	(357	) 	 	$	(360	) 	 	$	(399	) 	
Brandywine	  	 	(175	) 	 	 	(184	) 	 	 	(166	) 	 	 	(165	) 	 	 	(147	) 	
Westchester Run-off	  	 	(21	) 	 	 	(25	) 	 	 	(25	) 	 	 	(25	) 	 	 	(25	) 	
Other Run-off	  	 	(10	) 	 	 	(5	) 	 	 	(4	) 	 	 	(4	) 	 	 	(11	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total	  	$	(530	) 	 	$	(540	) 	 	$	(552	) 	 	$	(554	) 	 	$	(582	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net reinsurance recoverable	  				 				 				 				 				
Active operations	  	$	10,211	  	 	$	10,883	  	 	$	10,405	  	 	$	10,495	  	 	$	10,620	  	
Brandywine	  	 	2,130	  	 	 	2,092	  	 	 	2,212	  	 	 	2,316	  	 	 	2,410	  	
Westchester Run-off	  	 	473	  	 	 	470	  	 	 	479	  	 	 	485	  	 	 	493	  	
Other Run-off	  	 	57	  	 	 	30	  	 	 	36	  	 	 	39	  	 	 	72	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total	  	$	12,871	  	 	$	13,475	  	 	$	13,132	  	 	$	13,335	  	 	$	13,595	  	

			
Reinsurance Recoverable	  	Page 14	

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

 	  	December 31
2010	 	 	September 30
2010	 	 	June 30
2010	 	 	March 31
2010	 	 	December 31
2009	 	
Market Value	  				 				 				 				 				 				 				 				 				 				
Fixed maturities available for sale	  	$	37,539	  	 				 	$	41,103	  	 				 	$	41,554	  	 				 	$	40,564	  	 				 	$	39,525	  	 				
Fixed maturities held to maturity	  	 	9,461	  	 				 	 	6,104	  	 				 	 	3,339	  	 				 	 	3,433	  	 				 	 	3,561	  	 				
Short-term investments	  	 	1,983	  	 				 	 	1,857	  	 				 	 	2,097	  	 				 	 	2,052	  	 				 	 	1,667	  	 				
	  	 	 	 	 				 	 	 	 	 				 	 	 	 	 				 	 	 	 	 				 	 	 	 	 				
Total	  	$	48,983	  	 				 	$	49,064	  	 				 	$	46,990	  	 				 	$	46,049	  	 				 	$	44,753	  	 				
	  	 	 	 	 				 	 	 	 	 				 	 	 	 	 				 	 	 	 	 				 	 	 	 	 				
Asset Allocation by Market Value	  				 				 				 				 				 				 				 				 				 				
Treasury	  	$	2,075	  	 	 	4	% 	 	$	2,168	  	 	 	4	% 	 	$	2,207	  	 	 	5	% 	 	$	2,268	  	 	 	5	% 	 	$	2,068	  	 	 	5	% 	
Agency	  	 	2,015	  	 	 	4	% 	 	 	2,242	  	 	 	5	% 	 	 	2,298	  	 	 	5	% 	 	 	2,449	  	 	 	5	% 	 	 	2,698	  	 	 	6	% 	
Corporate and asset-backed	  	 	15,900	  	 	 	33	% 	 	 	16,186	  	 	 	33	% 	 	 	15,089	  	 	 	32	% 	 	 	14,492	  	 	 	31	% 	 	 	13,537	  	 	 	30	% 	
Mortgage-backed	  	 	12,362	  	 	 	25	% 	 	 	12,074	  	 	 	25	% 	 	 	11,926	  	 	 	25	% 	 	 	11,406	  	 	 	25	% 	 	 	11,311	  	 	 	25	% 	
Municipal	  	 	2,449	  	 	 	5	% 	 	 	2,207	  	 	 	4	% 	 	 	2,148	  	 	 	5	% 	 	 	2,091	  	 	 	5	% 	 	 	2,300	  	 	 	5	% 	
Non-U.S.	  	 	12,199	  	 	 	25	% 	 	 	12,330	  	 	 	25	% 	 	 	11,225	  	 	 	24	% 	 	 	11,291	  	 	 	25	% 	 	 	11,172	  	 	 	25	% 	
Short-term investments	  	 	1,983	  	 	 	4	% 	 	 	1,857	  	 	 	4	% 	 	 	2,097	  	 	 	4	% 	 	 	2,052	  	 	 	4	% 	 	 	1,667	  	 	 	4	% 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total	  	$	48,983	  	 	 	100	% 	 	$	49,064	  	 	 	100	% 	 	$	46,990	  	 	 	100	% 	 	$	46,049	  	 	 	100	% 	 	$	44,753	  	 	 	100	% 	

Note: Insured municipal bonds represent $741 million, or 30% of our municipal bond holdings.	  	
											
Credit Quality by Market Value	  				 				 				 				 				 				 				 				 				 				
AAA	  	$	23,718	  	 	 	48	% 	 	$	24,145	  	 	 	49	% 	 	$	23,807	  	 	 	51	% 	 	$	23,472	  	 	 	51	% 	 	$	22,884	  	 	 	51	% 	
AA	  	 	4,714	  	 	 	10	% 	 	 	4,367	  	 	 	9	% 	 	 	4,158	  	 	 	9	% 	 	 	4,003	  	 	 	9	% 	 	 	4,021	  	 	 	9	% 	
A	  	 	8,482	  	 	 	17	% 	 	 	8,594	  	 	 	17	% 	 	 	7,884	  	 	 	17	% 	 	 	7,635	  	 	 	17	% 	 	 	7,461	  	 	 	17	% 	
BBB	  	 	5,487	  	 	 	11	% 	 	 	5,647	  	 	 	11	% 	 	 	5,231	  	 	 	11	% 	 	 	5,024	  	 	 	11	% 	 	 	4,910	  	 	 	11	% 	
BB	  	 	3,357	  	 	 	7	% 	 	 	3,213	  	 	 	7	% 	 	 	2,987	  	 	 	6	% 	 	 	3,009	  	 	 	6	% 	 	 	2,866	  	 	 	6	% 	
B	  	 	2,393	  	 	 	5	% 	 	 	2,362	  	 	 	5	% 	 	 	2,175	  	 	 	5	% 	 	 	2,187	  	 	 	5	% 	 	 	2,029	  	 	 	5	% 	
Other	  	 	832	  	 	 	2	% 	 	 	736	  	 	 	2	% 	 	 	748	  	 	 	1	% 	 	 	719	  	 	 	1	% 	 	 	582	  	 	 	1	% 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total	  	$	48,983	  	 	 	100	% 	 	$	49,064	  	 	 	100	% 	 	$	46,990	  	 	 	100	% 	 	$	46,049	  	 	 	100	% 	 	$	44,753	  	 	 	100	% 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Cost/Amortized Cost	  				 				 				 				 				 				 				 				 				 				
Fixed maturities available for sale	  	$	36,542	  	 				 	$	39,089	  	 				 	$	40,204	  	 				 	$	39,603	  	 				 	$	38,985	  	 				
Fixed maturities held to maturity	  	 	9,501	  	 				 	 	5,977	  	 				 	 	3,222	  	 				 	 	3,335	  	 				 	 	3,481	  	 				
Short-term investments	  	 	1,983	  	 				 	 	1,857	  	 				 	 	2,097	  	 				 	 	2,052	  	 				 	 	1,667	  	 				
	  	 	 	 	 				 	 	 	 	 				 	 	 	 	 				 	 	 	 	 				 	 	 	 	 				
Subtotal	  	 	48,026	  	 				 	 	46,923	  	 				 	 	45,523	  	 				 	 	44,990	  	 				 	 	44,133	  	 				
Equity securities	  	 	666	  	 				 	 	387	  	 				 	 	200	  	 				 	 	271	  	 				 	 	398	  	 				
Other investments	  	 	1,511	  	 				 	 	1,449	  	 				 	 	1,308	  	 				 	 	1,332	  	 				 	 	1,258	  	 				
	  	 	 	 	 				 	 	 	 	 				 	 	 	 	 				 	 	 	 	 				 	 	 	 	 				
Total	  	$	50,203	  	 				 	$	48,759	  	 				 	$	47,031	  	 				 	$	46,593	  	 				 	$	45,789	  	 				

Avg. duration of fixed maturities	  	 	3.7 years	  	 				 	 	3.6 years	  	 				 	 	3.6 years	  	 				 	 	3.7 years	  	 				 	 	3.7 years	  	 				
Avg. market yield of fixed maturities (1)	  	 	3.6	% 	 				 	 	3.2	% 	 				 	 	3.7	% 	 				 	 	4.0	% 	 				 	 	4.3	% 	 				
Avg. credit quality	  	 	AA	  	 				 	 	AA	  	 				 	 	AA	  	 				 	 	AA	  	 				 	 	AA	  	 				
Avg. yield on invested assets (2)	  	 	4.3	% 	 				 	 	4.3	% 	 				 	 	4.4	% 	 				 	 	4.4	% 	 				 	 	4.5	% 	 				
 
(1)	Weighted average yield to maturity of our fixed income portfolio based on the market prices of the holdings as of that date.	
(2)	Net investment income divided by average cost of fixed maturities and other investments, and average market value of equity securities.	

Investments	  	Page 15	

					
	  	ACE Limited	 		
	  	Investment Portfolio - 2	 		
	  	(in millions of U.S. dollars)	 		
	  	(Unaudited)	 		
 
Mortgage-backed Fixed Income Portfolio
 
Market Value at December 31, 2010

 	  	S&P Credit Rating	 	
 	  	AAA	 	  	AA	 	  	A	 	  	BBB	 	  	BB and below	 	  	Total	 	
Mortgage-backed securities	  				  				  				  				  				  				
Residential mortgage-backed (RMBS)	  				  				  				  				  				  				
GNMA	  	$	686	  	  	$	—  	  	  	$	—  	  	  	$	—  	  	  	$	—  	  	  	$	686	  	
FNMA	  	 	6,427	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	6,427	  	
Freddie Mac	  	 	2,587	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	2,587	  	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total agency RMBS	  	 	9,700	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	9,700	  	
Non-agency RMBS	  	 	337	  	  	 	20	  	  	 	21	  	  	 	48	  	  	 	812	  	  	 	1,238	  	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total residential mortgage-backed	  	 	10,037	  	  	 	20	  	  	 	21	  	  	 	48	  	  	 	812	  	  	 	10,938	  	
Commercial mortgage-backed	  	 	1,386	  	  	 	21	  	  	 	14	  	  	 	3	  	  	 	—  	  	  	 	1,424	  	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total mortgage-backed securities	  	$	11,423	  	  	$	41	  	  	$	35	  	  	$	51	  	  	$	812	  	  	$	12,362	  	

Mortgage-backed securities total $12.4 billion, are rated predominantly AAA and comprise 25% of the fixed income portfolio. This compares to a 35% mortgage-backed weighting in representative indices of the U.S. fixed income market. The minimum rating for initial purchases of mortgage-backed securities is AAA.
 
Securities issued by Federal agencies with implied or explicit government guarantees total $9.7 billion and represent 89% of the residential mortgage-backed portfolio.
 
Non-agency residential mortgage-backed securities are backed by prime collateral, and broadly diversified in over 220,000 loans. The portfolio’s loan-to-value ratio is approximately 70% with an average FICO score of 730. With this conservative loan-to-value ratio and subordinated collateral of 12%, the cumulative 5-year foreclosure rate would have to rise to 18% and real estate values would have to fall 19% from their current levels before principal is impaired. The current foreclosure rate of ACE's non-agency RMBS portfolio is 9%.
 
Commercial mortgage-backed securities of $1.4 billion are rated predominantly AAA, broadly diversified with over 17,000 loans and seasoned with 79% of the portfolio issued before 2006. The average loan-to-value ratio is approximately 68% with a debt service coverage ratio in excess of 1.7 and weighted average subordinated collateral of 33%. The cumulative foreclosure rate would have to rise to 41% and commercial real estate values would have to fall more than 5% from their current levels before principal is impaired. The current foreclosure rate of the portfolio is about 2.6%.

Investments 2	  	Page 16	

					
	 	ACE Limited	 		
	 	Investment Portfolio - 3	 		
	 	(in millions of U.S. dollars)	 		
	 	(Unaudited)	 		
 
Mortgage-backed Fixed Income Portfolio
Amortized Cost at December 31, 2010

 	  	S&P Credit Rating	 	
 	  	AAA	 	  	AA	 	  	A	 	  	BBB	 	  	BB and below	 	  	Total	 	
Mortgage-backed securities	  				  				  				  				  				  				
Residential mortgage-backed (RMBS)	  				  				  				  				  				  				
GNMA	  	$	668	  	  	$	—  	  	  	$	—  	  	  	$	—  	  	  	$	—  	  	  	$	668	  	
FNMA	  	 	6,346	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	6,346	  	
Freddie Mac	  	 	2,550	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	2,550	  	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total agency RMBS	  	 	9,564	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	9,564	  	
Non-agency RMBS	  	 	351	  	  	 	23	  	  	 	23	  	  	 	55	  	  	 	947	  	  	 	1,399	  	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total residential mortgage-backed	  	 	9,915	  	  	 	23	  	  	 	23	  	  	 	55	  	  	 	947	  	  	 	10,963	  	
Commercial mortgage-backed	  	 	1,320	  	  	 	20	  	  	 	13	  	  	 	3	  	  	 	—  	  	  	 	1,356	  	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total mortgage-backed securities	  	$	11,235	  	  	$	43	  	  	$	36	  	  	$	58	  	  	$	947	  	  	$	12,319	  	

			
Investments 3	  	Page 17	

					
	 	ACE Limited	 		
	 	Investment Portfolio - 4	 		
	 	(in millions of U.S. dollars)	 		
	 	(Unaudited)	 		
 
U.S. Investment Grade Corporate and Asset-backed Fixed Income Portfolio

 	  	S&P Credit Rating	 	
Market Value at December 31, 2010	  	AAA	 	  	AA	 	  	A	 	  	BBB	 	  	Total	 	
						
Asset-backed	  	$	221	  	  	$	2	  	  	$	13	  	  	$	6	  	  	$	242	  	
Banks	  	 	615	  	  	 	265	  	  	 	2,116	  	  	 	199	  	  	 	3,195	  	
Basic Materials	  	 	—  	  	  	 	—  	  	  	 	61	  	  	 	166	  	  	 	227	  	
Communications	  	 	—  	  	  	 	—  	  	  	 	636	  	  	 	642	  	  	 	1,278	  	
Consumer, Cyclical	  	 	—  	  	  	 	81	  	  	 	202	  	  	 	201	  	  	 	484	  	
Consumer, Non-Cyclical	  	 	54	  	  	 	486	  	  	 	392	  	  	 	572	  	  	 	1,504	  	
Diversified Financial Services	  	 	43	  	  	 	56	  	  	 	146	  	  	 	221	  	  	 	466	  	
Energy	  	 	79	  	  	 	14	  	  	 	209	  	  	 	514	  	  	 	816	  	
Industrial	  	 	95	  	  	 	379	  	  	 	303	  	  	 	166	  	  	 	943	  	
Utilities	  	 	—  	  	  	 	1	  	  	 	386	  	  	 	529	  	  	 	916	  	
All Others	  	 	115	  	  	 	68	  	  	 	397	  	  	 	320	  	  	 	900	  	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total	  	$	1,222	  	  	$	1,352	  	  	$	4,861	  	  	$	3,536	  	  	$	10,971	  	

U.S. Investment Grade Corporate Fixed Income Portfolio
 
The average credit quality of ACE’s US investment grade bond portfolio is high at A.
 
ACE prohibits investments in complex structured securities (e.g. CDOs, CLOs) and over-the-counter derivatives and does not permit the use of portfolio leverage.
 
Corporate bond holdings are highly diversified across industries and geographies. Issuer limits are based on credit rating (AA 2%, A 1%, BBB 0.5% of total portfolio) and are monitored on a daily basis by ACE via an internal compliance system.

Investments 4	  	Page 18	

					
	 	ACE Limited	 		
	 	Investment Portfolio - 5	 		
	 	(in millions of U.S. dollars)	 		
	 	(Unaudited)	 		
 
Below Investment Grade Corporate and Asset-backed Fixed Income Portfolio
Market Value at December 31, 2010

 	  	S&P Credit Rating	 	
 	  	BB	 	  	B	 	  	CCC	 	  	Other	 	  	Total	 	
						
Asset-backed	  	$	7	  	  	$	16	  	  	$	7	  	  	$	2	  	  	$	32	  	
Basic Materials	  	 	199	  	  	 	142	  	  	 	16	  	  	 	—  	  	  	 	357	  	
Communications	  	 	433	  	  	 	396	  	  	 	13	  	  	 	—  	  	  	 	842	  	
Consumer, Cyclical	  	 	334	  	  	 	270	  	  	 	28	  	  	 	2	  	  	 	634	  	
Consumer, Non-Cyclical	  	 	547	  	  	 	396	  	  	 	6	  	  	 	—  	  	  	 	949	  	
Diversified Financial Services	  	 	68	  	  	 	67	  	  	 	3	  	  	 	17	  	  	 	155	  	
Energy	  	 	643	  	  	 	201	  	  	 	4	  	  	 	—  	  	  	 	848	  	
Industrial	  	 	311	  	  	 	204	  	  	 	16	  	  	 	—  	  	  	 	531	  	
Utilities	  	 	218	  	  	 	107	  	  	 	—  	  	  	 	—  	  	  	 	325	  	
All Others	  	 	141	  	  	 	109	  	  	 	6	  	  	 	—  	  	  	 	256	  	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total	  	$	2,901	  	  	$	1,908	  	  	$	99	  	  	$	21	  	  	$	4,929	  	

Below Investment Grade Corporate Fixed Income Portfolio
 
ACE manages high yield bonds as a distinct and separate asset class from investment grade bonds. ACE’s allocation to high yield bonds is explicitly set by internal management and is targeted to securities in the upper tier of credit quality (BB/B). Our minimum rating for initial purchase is BB/B.
 
Six external investment managers are responsible for high yield security selection and portfolio construction.
 
ACE’s high yield managers have a conservative approach to credit selection and very low historical default experience.
 
Securities holdings are highly diversified across industries and are subject to a 1.5% issuer limit as a percentage of high yield allocation. The portfolio comprises over 650 issuers with our largest current issuer exposure at $72 million. ACE monitors position limits on a daily basis through an internal compliance system.
 
Derivative and structured securities (e.g. credit default swaps, CLOs) are not permitted in high yield portfolios.

Investments 5	  	Page 19	

					
	  	ACE Limited	 		
	  	Investment Portfolio - 6	 		
	  	(in millions of U.S. dollars)	 		
	  	(Unaudited)	 		
 
Non-U.S. Fixed Income Portfolio
Market Value at December 31, 2010

 	  	S&P Credit Rating	 	
 	  	AAA	 	  	AA	 	  	A	 	  	BBB	 	  	BB and below	 	  	Total	 	
							
United Kingdom	  	$	972	  	  	$	—  	  	  	$	—  	  	  	$	—  	  	  	$	—  	  	  	$	972	  	
Canada	  	 	886	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	886	  	
Germany	  	 	404	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	404	  	
Japan	  	 	—  	  	  	 	379	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	379	  	
France	  	 	193	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	193	  	
Province of Ontario	  	 	—  	  	  	 	192	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	192	  	
Province of Quebec	  	 	—  	  	  	 	—  	  	  	 	147	  	  	 	—  	  	  	 	—  	  	  	 	147	  	
Switzerland	  	 	142	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	142	  	
Brazil	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	139	  	  	 	—  	  	  	 	139	  	
State of Queensland	  	 	69	  	  	 	40	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	109	  	
Republic of Korea	  	 	—  	  	  	 	—  	  	  	 	102	  	  	 	—  	  	  	 	—  	  	  	 	102	  	
Thailand	  	 	3	  	  	 	—  	  	  	 	72	  	  	 	13	  	  	 	—  	  	  	 	88	  	
United Mexican States	  	 	—  	  	  	 	—  	  	  	 	27	  	  	 	59	  	  	 	—  	  	  	 	86	  	
Australia	  	 	72	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	72	  	
Taiwan	  	 	7	  	  	 	58	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	65	  	
State of New South Wales	  	 	62	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	62	  	
New Zealand	  	 	58	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	58	  	
State of Victoria	  	 	52	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	52	  	
People’s Republic of China	  	 	15	  	  	 	33	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	48	  	
Austria	  	 	46	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	46	  	
Malaysia	  	 	3	  	  	 	—  	  	  	 	36	  	  	 	—  	  	  	 	2	  	  	 	41	  	
Egypt	  	 	24	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	13	  	  	 	37	  	
State of Western Australia	  	 	36	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	36	  	
Qatar	  	 	—  	  	  	 	35	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	35	  	
Province of British Columbia	  	 	33	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	33	  	
Other Non-U.S. Government	  	 	142	  	  	 	141	  	  	 	50	  	  	 	31	  	  	 	33	  	  	 	397	  	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Non-U.S. Government Securities	  	$	3,219	  	  	$	878	  	  	$	434	  	  	$	242	  	  	$	48	  	  	$	4,821	  	
Non-U.S. Corporate	  	 	1,615	  	  	 	1,054	  	  	 	2,468	  	  	 	1,474	  	  	 	767	  	  	 	7,378	  	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
	  	$	4,834	  	  	$	1,932	  	  	$	2,902	  	  	$	1,716	  	  	$	815	  	  	$	12,199	  	

Non-U.S. Fixed Income Portfolio
 
ACE’s non-U.S. investment grade fixed income portfolios are currency-matched with the insurance liabilities of ACE’s non-U.S. operations. 85% of ACE’s non-U.S. fixed income is denominated in G7 currencies.
 
Average credit quality of non-U.S. fixed income securities is very high at AA and 53% of holdings are rated AAA or guaranteed by governments or quasi-government agencies.
 
Corporate bond holdings are highly diversified across industries and geographies. Issuer limits are based on credit rating (AA 2%, A 1%, BBB 0.5% of total portfolio) and are monitored on a daily basis by ACE via an internal compliance system.

Investments 6	  	Page 20	

					
	  	ACE Limited	 		
	  	Investment Portfolio - 7	 		
	  	(in millions of U.S. dollars)	 		
	  	(Unaudited)	 		
 
Investment portfolio
 
Top 25 Exposures - Fixed Maturity Investments

December 31, 2010	  	 	 	  	Rating	 	
 	1	  	  	General Electric Co	  	$	468	  	  	 	AA+	  	
 	2	  	  	JP Morgan Chase & Co	  	 	451	  	  	 	A+	  	
 	3	  	  	Bank of America Corp	  	 	409	  	  	 	A	  	
 	4	  	  	Citigroup Inc	  	 	330	  	  	 	A	  	
 	5	  	  	Goldman Sachs Group Inc/The	  	 	305	  	  	 	A	  	
 	6	  	  	Wells Fargo & Co	  	 	297	  	  	 	AA-	  	
 	7	  	  	Verizon Communications Inc	  	 	296	  	  	 	A-	  	
 	8	  	  	Morgan Stanley	  	 	285	  	  	 	A	  	
 	9	  	  	AT&T INC	  	 	240	  	  	 	A-	  	
 	10	  	  	HSBC Holdings Plc	  	 	234	  	  	 	AA-	  	
 	11	  	  	Credit Suisse Group	  	 	195	  	  	 	A	  	
 	12	  	  	Barclays PLC	  	 	181	  	  	 	A+	  	
 	13	  	  	Kraft Foods Inc	  	 	162	  	  	 	BBB	  	
 	14	  	  	Comcast Corp	  	 	153	  	  	 	BBB+	  	
 	15	  	  	Royal Bank of Scotland Group Plc	  	 	151	  	  	 	A	  	
 	16	  	  	Lloyds Banking Group Plc	  	 	147	  	  	 	A	  	
 	17	  	  	American Express Co	  	 	135	  	  	 	BBB+	  	
 	18	  	  	Time Warner Cable Inc	  	 	128	  	  	 	BBB	  	
 	19	  	  	ConocoPhillips	  	 	125	  	  	 	A	  	
 	20	  	  	UBS AG	  	 	116	  	  	 	A+	  	
 	21	  	  	Pfizer Inc	  	 	111	  	  	 	AA	  	
 	22	  	  	Anheuser-Busch InBev NV	  	 	105	  	  	 	BBB+	  	
 	23	  	  	Dominion Resources Inc/VA	  	 	104	  	  	 	A-	  	
 	24	  	  	BP PLC	  	 	99	  	  	 	A	  	
 	25	  	  	Banco Santander SA	  	 	95	  	  	 	AA	  	

Investments 7	  	Page 21	

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

 	  	Three months ended December 31, 2010	 	 	Year ended December 31, 2010	 	
 	  	Net Realized
Gains
(Losses) (1)	 	 	Net  Unrealized
Gains
(Losses)	 	 	Net
Impact	 	 	Net Realized
Gains
(Losses) (1)	 	 	Net  Unrealized
Gains
(Losses)	 	 	Net
Impact	 	
Fixed maturities	  	$	109	  	 	$	(653	) 	 	$	(544	) 	 	$	380	  	 	$	973	  	 	$	1,353	  	
Equity securities	  	 	—  	  	 	 	(3	) 	 	 	(3	) 	 	 	84	  	 	 	(44	) 	 	 	40	  	
Equity and fixed income derivatives	  	 	35	  	 	 	—  	  	 	 	35	  	 	 	58	  	 	 	—  	  	 	 	58	  	
Foreign exchange gains (losses)	  	 	(44	) 	 	 	—  	  	 	 	(44	) 	 	 	(54	) 	 	 	—  	  	 	 	(54	) 	
Other (2)	  	 	177	  	 	 	(122	) 	 	 	55	  	 	 	161	  	 	 	(30	) 	 	 	131	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Sub-total	  	 	277	  	 	 	(778	) 	 	 	(501	) 	 	 	629	  	 	 	899	  	 	 	1,528	  	
Mark-to-market gains (losses) from derivative transactions (3)	  	 	28	  	 	 	—  	  	 	 	28	  	 	 	(197	) 	 	 	—  	  	 	 	(197	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total gains (losses)	  	 	305	  	 	 	(778	) 	 	 	(473	) 	 	 	432	  	 	 	899	  	 	 	1,331	  	
Partially-owned entities (4)	  	 	17	  	 	 	(5	) 	 	 	12	  	 	 	69	  	 	 	(5	) 	 	 	64	  	
Income tax expense (benefit)	  	 	23	  	 	 	(214	) 	 	 	(191	) 	 	 	50	  	 	 	152	  	 	 	202	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net gains (losses)	  	$	299	  	 	$	(569	) 	 	$	(270	) 	 	$	451	  	 	$	742	  	 	$	1,193	  	

(1)	Other-than-temporary impairments for the quarter include $4 million for fixed maturities. Year to date other-than-temporary impairments of $59 million include $46 million for fixed maturities and $13 million for other investments.	
(2)	The quarter includes $175 million of non-taxable realized gain which includes the reversal of a previously recorded unrealized gain of $131 million which relates to the acquisition of Rain & Hail. This resulted in a tax benefit of $46 million.	
(3)	The quarter includes $28 million of realized gains on the life reinsurance operations which is comprised of a $152 million gain on guaranteed living benefit derivatives and $124 million of losses on other derivatives, including S&P put options and futures. The full year includes $178 million of realized losses on the life reinsurance operations which is comprised of a $28 million loss on guaranteed living benefit derivatives and $150 million of losses on other derivatives, including S&P put options and futures.	
(4)	Net realized and unrealized gains (losses) on partially-owned entities that meet the requirements for equity accounting. The net income or loss is included in other income (expense).	

 	  	Three months ended December 31, 2009	 	 	Year ended December 31, 2009	 	
 	  	Net Realized
Gains
(Losses) (5)	 	 	Net  Unrealized
Gains
(Losses)	 	 	Net
Impact	 	 	Net Realized
Gains
(Losses) (5)	 	 	Net Unrealized
Gains
(Losses) (6)	 	  	Net
Impact	 	
Fixed maturities	  	$	79	  	 	$	(19	) 	 	$	60	  	 	$	(41	) 	 	$	2,717	  	  	$	2,676	  	
Equity securities	  	 	35	  	 	 	15	  	 	 	50	  	 	 	(145	) 	 	 	213	  	  	 	68	  	
Equity and fixed income derivatives	  	 	6	  	 	 	—  	  	 	 	6	  	 	 	68	  	 	 	—  	  	  	 	68	  	
Foreign exchange gains (losses)	  	 	10	  	 	 	—  	  	 	 	10	  	 	 	(21	) 	 	 	—  	  	  	 	(21	) 	
Other	  	 	164	  	 	 	(122	) 	 	 	42	  	 	 	31	  	 	 	138	  	  	 	169	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	  	 	 	 	
Sub-total	  	 	294	  	 	 	(126	) 	 	 	168	  	 	 	(108	) 	 	 	3,068	  	  	 	2,960	  	
Mark-to-market gains (losses) from derivative transactions (7)	  	 	79	  	 	 	—  	  	 	 	79	  	 	 	(88	) 	 	 	—  	  	  	 	(88	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	  	 	 	 	
Total gains (losses)	  	 	373	  	 	 	(126	) 	 	 	247	  	 	 	(196	) 	 	 	3,068	  	  	 	2,872	  	
Partially-owned entities (8)	  	 	(31	) 	 	 	15	  	 	 	(16	) 	 	 	(63	) 	 	 	24	  	  	 	(39	) 	
Income tax expense (benefit)	  	 	72	  	 	 	(74	) 	 	 	(2	) 	 	 	(49	) 	 	 	481	  	  	 	432	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	  	 	 	 	
Net gains (losses)	  	$	270	  	 	$	(37	) 	 	$	233	  	 	$	(210	) 	 	$	2,611	  	  	$	2,401	  	

(5)	Other-than-temporary impairments for the quarter of $33 million include $17 million for fixed maturities and $16 million for other investments. Other-than-temporary impairments for the year of $397 million include $234 million for fixed maturities, $26 million for equities and $137 million for other investments.	
(6)	Excludes $242 million of change in unrealized losses, net of tax of $63 million, related to the adoption of certain provisions that amended GAAP relating to other-than-temporary impairments.	
(7)	The quarter includes $87 million of realized gains on the life reinsurance operations which is comprised of a $150 million gain on guaranteed living benefit derivatives and $63 million of losses on other derivatives, including S&P put options and futures. The full year includes $5 million of realized gains on the life reinsurance operations which is comprised of a $368 million gain on guaranteed living benefit derivatives offset by $363 million of losses on other derivatives, including S&P put options and futures.	
(8)	Net realized and unrealized gains (losses) on partially-owned entities that meet the requirements for equity accounting. The net income or loss is included in other income (expense).	

Investment Gains (Losses)	  	Page 22	

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

 	  	December 31
2010	 	 	September 30
2010	 	 	June 30
2010	 	 	March 31
2010	 	 	December 31
2009	 	 	December 31
2008	 	
							
Total short-term debt	  	$	1,300	  	 	$	155	  	 	$	147	  	 	$	150	  	 	$	161	  	 	$	471	  	
Total long-term debt	  	 	3,358	  	 	 	3,158	  	 	 	3,158	  	 	 	3,158	  	 	 	3,158	  	 	 	2,806	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total debt	  	$	4,658	  	 	$	3,313	  	 	$	3,305	  	 	$	3,308	  	 	$	3,319	  	 	$	3,277	  	

Total trust preferred securities	  	$	309	  	 	$	309	  	 	$	309	  	 	$	309	  	 	$	309	  	 	$	309	  	

Total shareholders’ equity	  	$	22,974	  	 	$	22,845	  	 	$	21,410	  	 	$	20,636	  	 	$	19,667	  	 	$	14,446	  	

Total capitalization	  	$	27,941	  	 	$	26,467	  	 	$	25,024	  	 	$	24,253	  	 	$	23,295	  	 	$	18,032	  	
Tangible capital (1)	  	$	23,265	  	 	$	22,561	  	 	$	21,188	  	 	$	20,370	  	 	$	19,364	  	 	$	14,285	  	
							
Leverage ratios	  				 				 				 				 				 				
Debt/ total capitalization	  	 	16.7	% 	 	 	12.5	% 	 	 	13.2	% 	 	 	13.6	% 	 	 	14.2	% 	 	 	18.2	% 	
Debt plus trust preferred securities/ total capitalization	  	 	17.8	% 	 	 	13.7	% 	 	 	14.4	% 	 	 	14.9	% 	 	 	15.6	% 	 	 	19.9	% 	
Debt/ tangible capital	  	 	20.0	% 	 	 	14.7	% 	 	 	15.6	% 	 	 	16.2	% 	 	 	17.1	% 	 	 	22.9	% 	
							
Debt plus trust preferred securities/ tangible capital	  	 	21.3	% 	 	 	16.1	% 	 	 	17.1	% 	 	 	17.8	% 	 	 	18.7	% 	 	 	25.1	% 	
 
(1)	Tangible capital is equal to total capitalization less goodwill and other intangible assets.	

Capital Structure	  	Page 23	

					
	 	ACE Limited
Debt, Trust Preferred, and Credit Facilities
(in millions of U.S. dollars)
(Unaudited)	 		
 
December 31, 2010

 	  	Par Amount
Outstanding	 	  	Carrying
value	 	  	Coupon	 	 	Maturity Date	
Debt and Trust Preferred	  				  				  				 		
Credit Facility Borrowing	  	$	150	  	  	$	150	  	  	 	0.51	% 	 	January 13, 2011	
Credit Facility Borrowing	  	$	150	  	  	$	150	  	  	 	0.51	% 	 	January 18, 2011	
Repurchase Agreements	  	$	450	  	  	$	450	  	  	 	0.34	% 	 	March 8, 2011	
Repurchase Agreements	  	$	550	  	  	$	550	  	  	 	0.29	% 	 	March 9, 2011	
ACE INA Holdings Inc. Senior Notes	  	$	500	  	  	$	500	  	  	 	5.88	% 	 	June 15, 2014	
ACE INA Holdings Inc. Senior Notes	  	$	450	  	  	$	447	  	  	 	5.60	% 	 	May 15, 2015	
ACE INA Holdings Inc. Senior Notes	  	$	700	  	  	$	699	  	  	 	2.60	% 	 	November 23, 2015	
ACE INA Holdings Inc. Senior Notes	  	$	500	  	  	$	500	  	  	 	5.70	% 	 	February 15, 2017	
ACE INA Holdings Inc. Senior Notes	  	$	300	  	  	$	300	  	  	 	5.80	% 	 	March 15, 2018	
ACE INA Holdings Inc. Senior Notes	  	$	500	  	  	$	500	  	  	 	5.90	% 	 	June 15, 2019	
ACE INA Holdings Inc. Debentures	  	$	100	  	  	$	100	  	  	 	8.88	% 	 	August 15, 2029	
ACE Capital Trust II Preferred Securities	  	$	309	  	  	$	309	  	  	 	9.70	% 	 	April 1, 2030	
ACE INA Holdings Inc. Senior Notes	  	$	300	  	  	$	299	  	  	 	6.70	% 	 	May 15, 2036	
Other	  	$	13	  	  	$	13	  	  				 		
	  	 	 	 	  	 	 	 	  				 		
	  	$	4,972	  	  	$	4,967	  	  				 		

 	  	Commitment	 	  	Usage	 	  	 	 	 	Maturity Date	
Credit Facilities	  				  				  				 		
Syndicated Letter of Credit Facility	  	$	1,000	  	  	$	574	  	  				 	November 8, 2012	
Revolving Credit / LOC Facility	  	$	500	  	  	$	370	  	  				 	November 8, 2012	
Bilateral Letter of Credit Facility	  	$	500	  	  	$	500	  	  				 	September 20, 2014	
Funds at Lloyds Capital Facilities	  	$	400	  	  	$	340	  	  				 	December 31, 2015	
	  	 	 	 	  	 	 	 	  				 		
	  	$	2,400	  	  	$	1,784	  	  				 		

			
Capital Structure 2	  	Page 24	

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

 	  	Three months ended December 31	 	 	Years ended December 31	 	
 	  	2010	 	 	2009	 	 	2010	 	 	2009	 	
Numerator	  				 				 				 				
Income to common shares, excl. net realized gains (losses) (1)	  	$	702	  	 	$	683	  	 	 	2,657	  	 	 	2,759	  	
Net realized gains (losses), net of income tax	  	 	299	  	 	 	270	  	 	 	451	  	 	 	(210	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income available to the holders of common shares	  	$	1,001	  	 	$	953	  	 	$	3,108	  	 	$	2,549	  	

Rollforward of Common Shares Outstanding	  				 				 				 				
Shares - beginning of period	  	 	339,229,422	  	 	 	336,280,476	  	 	 	336,524,657	  	 	 	333,645,471	  	
Repurchase of shares	  	 	(4,926,082	) 	 	 	—  	  	 	 	(4,926,082	) 	 	 	—  	  	
Issued under employee stock purchase plan	  	 	—  	  	 	 	(176	) 	 	 	240,979	  	 	 	259,219	  	
Shares (cancelled) granted	  	 	102,761	  	 	 	24,680	  	 	 	1,774,583	  	 	 	2,082,411	  	
Issued for option exercises	  	 	536,751	  	 	 	219,677	  	 	 	1,328,715	  	 	 	537,556	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Shares - end of period	  	 	334,942,852	  	 	 	336,524,657	  	 	 	334,942,852	  	 	 	336,524,657	  	

Denominator	  				 				 				 				
Weighted average shares outstanding	  	 	340,150,218	  	 	 	337,432,132	  	 	 	339,685,143	  	 	 	336,725,625	  	
Effect of other dilutive securities	  	 	2,405,219	  	 	 	1,523,034	  	 	 	1,561,244	  	 	 	813,669	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Adj. wtd. avg. shares outstanding and assumed conversions	  	 	342,555,437	  	 	 	338,955,166	  	 	 	341,246,387	  	 	 	337,539,294	  	

Basic earnings per share	  				 				 				 				
Income excluding net realized gains (losses) (1)	  	$	2.06	  	 	$	2.02	  	 	$	7.82	  	 	$	8.19	  	
Net realized gains (losses), net of income tax	  	 	0.88	  	 	 	0.80	  	 	 	1.33	  	 	 	(0.62	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income	  	$	2.94	  	 	$	2.82	  	 	$	9.15	  	 	$	7.57	  	

Diluted earnings per share	  				 				 				 				
Income excluding net realized gains (losses) (1)	  	$	2.05	  	 	$	2.01	  	 	$	7.79	  	 	$	8.17	  	
Net realized gains (losses), net of income tax	  	 	0.87	  	 	 	0.80	  	 	 	1.32	  	 	 	(0.62	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income	  	$	2.92	  	 	$	2.81	  	 	$	9.11	  	 	$	7.55	  	

(1)	See Non-GAAP Financial Measures.	

Earnings per share	  	Page 25	

					
	 	ACE Limited
Non-GAAP Financial Measures
(in millions of U.S. dollars)
(Unaudited)	 		
 
Regulation G - Non-GAAP Financial Measures
 
In presenting our results, we have included and discussed certain non-GAAP measures. These non-GAAP measures, which may be defined differently by other companies, are important for an understanding of our overall results of operations. However, they should not be viewed as a substitute for measures determined in accordance with generally accepted accounting principles (GAAP). A reconciliation of book value per common share is provided on the next page.
 
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).
 
The following non-GAAP measure is a common performance measurement and is defined as income excluding net realized gains (losses) and the related tax expense (benefit). 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. Income excluding net realized gains (losses) should not be viewed as a substitute for net income determined in accordance with GAAP.

 	  	4Q-10	 	  	3Q-10	 	 	2Q-10	 	  	1Q-10	 	  	4Q-09	 	 	Full Year
2010	 	  	Full Year
2009	 	
								
Net income, as reported	  	$	1,001	  	  	$	675	  	 	$	677	  	  	$	755	  	  	$	953	  	 	$	3,108	  	  	$	2,549	  	
Net realized gains (losses)	  	 	305	  	  	 	(50	) 	 	 	9	  	  	 	168	  	  	 	373	  	 	 	432	  	  	 	(196	) 	
Net realized gains (losses) in other income (expense) (1)	  	 	17	  	  	 	39	  	 	 	3	  	  	 	10	  	  	 	(31	) 	 	 	69	  	  	 	(63	) 	
Income tax expense (benefit) on net realized gains (losses)	  	 	23	  	  	 	2	  	 	 	23	  	  	 	2	  	  	 	72	  	 	 	50	  	  	 	(49	) 	
	  	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	
Income excluding net realized gains (losses)	  	$	702	  	  	$	688	  	 	$	688	  	  	$	579	  	  	$	683	  	 	$	2,657	  	  	$	2,759	  	

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

Reconciliation Non-GAAP	  	Page 26	

					
	 	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
2010	 	 	September 30
2010	 	 	June 30
2010	 	 	March 31
2010	 	 	December 31
2009	 	
						
Shareholders’ equity	  	$	22,974	  	 	$	22,845	  	 	$	21,410	  	 	$	20,636	  	 	$	19,667	  	
Less: goodwill and other intangible assets	  	 	4,676	  	 	 	3,906	  	 	 	3,836	  	 	 	3,883	  	 	 	3,931	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Numerator for tangible book value per share	  	$	18,298	  	 	$	18,939	  	 	$	17,574	  	 	$	16,753	  	 	$	15,736	  	

Denominator	  	 	334,942,852	  	 	 	339,229,422	  	 	 	338,755,604	  	 	 	338,610,718	  	 	 	336,524,657	  	

Book value per common share	  	$	68.59	  	 	$	67.34	  	 	$	63.20	  	 	$	60.94	  	 	$	58.44	  	
Tangible book value per common share	  	$	54.63	  	 	$	55.83	  	 	$	51.88	  	 	$	49.48	  	 	$	46.76	  	
						
Reconciliation of Book Value	  				 				 				 				 				
						
Shareholders’ equity, beginning of quarter	  	$	22,845	  	 	$	21,410	  	 	$	20,636	  	 	$	19,667	  	 	$	18,733	  	
Income excluding net realized gains (losses)	  	 	702	  	 	 	688	  	 	 	688	  	 	 	579	  	 	 	683	  	
Net realized gains (losses), net of tax	  	 	299	  	 	 	(13	) 	 	 	(11	) 	 	 	176	  	 	 	270	  	
Net unrealized gains (losses), net of tax	  	 	(569	) 	 	 	680	  	 	 	282	  	 	 	349	  	 	 	(37	) 	
Repurchase of shares	  	 	(303	) 	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	
Dividend declared on common shares	  	 	(113	) 	 	 	(112	) 	 	 	(113	) 	 	 	(105	) 	 	 	(105	) 	
Cumulative translation, net of tax	  	 	47	  	 	 	140	  	 	 	(115	) 	 	 	(50	) 	 	 	97	  	
Pension liability	  	 	6	  	 	 	(4	) 	 	 	1	  	 	 	4	  	 	 	(22	) 	
Other (1)	  	 	60	  	 	 	56	  	 	 	42	  	 	 	16	  	 	 	48	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
	  	$	22,974	  	 	$	22,845	  	 	$	21,410	  	 	$	20,636	  	 	$	19,667	  	

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

Reconciliation Book Value	  	Page 27	

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

Consolidated Statement of Comprehensive Income	  	4Q-10	 	 	3Q-10	 	 	2Q-10	 	 	1Q-10	 	 	4Q-09	 	 	Full Year
2010	 	 	Full Year
2009	 	
								
Net income	  	$	1,001	  	 	$	675	  	 	$	677	  	 	$	755	  	 	$	953	  	 	$	3,108	  	 	$	2,549	  	

Net unrealized appreciation (depreciation) on investments	  				 				 				 				 				 				 				
Unrealized appreciation (depreciation) on investments (1)	  	 	(497	) 	 	 	953	  	 	 	487	  	 	 	583	  	 	 	201	  	 	 	1,526	  	 	 	2,712	  	
Reclassification adjustment for net realized (gains) losses included in net income	  	 	(286	) 	 	 	(120	) 	 	 	(97	) 	 	 	(129	) 	 	 	(312	) 	 	 	(632	) 	 	 	75	  	
Change in cumulative translation adjustments	  	 	66	  	 	 	186	  	 	 	(169	) 	 	 	(90	) 	 	 	141	  	 	 	(7	) 	 	 	568	  	
Change in minimum pension liability	  	 	9	  	 	 	(6	) 	 	 	2	  	 	 	6	  	 	 	(35	) 	 	 	11	  	 	 	(48	) 	
Income tax (expense) benefit related to other comprehensive income items (2)	  	 	192	  	 	 	(197	) 	 	 	(55	) 	 	 	(67	) 	 	 	43	  	 	 	(127	) 	 	 	(568	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Other comprehensive income	  	 	(516	) 	 	 	816	  	 	 	168	  	 	 	303	  	 	 	38	  	 	 	771	  	 	 	2,739	  	

Comprehensive income	  	$	485	  	 	$	1,491	  	 	$	845	  	 	$	1,058	  	 	$	991	  	 	$	3,879	  	 	$	5,288	  	

(1)	Unrealized appreciation on investments for the full year 2009 includes $305 million of losses related to the adoption of certain provisions that amended GAAP relating to other-than-temporary impairments.	
(2)	Income tax expense for the full year 2009 includes $63 million related to the adoption of certain provisions that amended GAAP relating to other-than-temporary impairments.	

Comprehensive Income	  	Page 28	

					
	 	ACE Limited
Glossary	 		
 
Annualized return on ordinary shareholders’ equity (ROE): Income excluding net realized gains (losses) divided by average shareholders’ equity for the period excluding unrealized gains (losses) on investments and the deferred tax component included in shareholders’ equity. To annualize a quarterly rate multiply by four.
 
Book value per common share: Shareholders’ equity divided by the shares outstanding.
 
Combined Insurance: Combined Insurance Company of America, acquired April 1, 2008.
 
Combined ratio: The sum of the loss and loss expense ratio, acquisition cost ratio and the administrative expense ratio excluding life business. Calculated on a GAAP basis.
 
Effective tax rate: Income tax expense divided by the sum of income tax expense and income excluding net realized gains (losses).
 
G7: A group of seven industrialized nations including Canada, France, Germany, Italy, Japan, United Kingdom, and the United States.
 
Life underwriting income: Net premiums earned and net investment income less policy benefits, acquisition costs, and administrative expenses.
 
NM: Not meaningful.
 
Tangible book value per common share: Shareholders’ equity less goodwill and other intangible assets divided by the shares outstanding.
 
Tangible capital: Total capitalization less goodwill and other intangible assets.
 
Total capitalization: Short-term debt, long-term debt, trust preferreds, and shareholders’ equity.

Glossary	  	Page 29