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) – April 24, 2007
 
ACE LIMITED
(Exact name of registrant as specified in its charter)

Cayman Islands	 	1-11778	 	98-0091805	
(State or other jurisdiction
of Incorporation)	 	(Commission File Number)	 	(I.R.S. Employer
Identification No.)	
 
ACE Global Headquarters
17 Woodbourne Avenue
Hamilton HM 08 Bermuda
(Address of principal executive offices)
 
Registrant’s telephone number, including area code: (441) 295-5200
 
Not applicable
(Former name or former address, if changed since last report)

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

 
Item 2.02.    Results of Operations and Financial Condition
 
On April 24, 2007, ACE Limited issued a press release reporting its first quarter 2007 results and the availability of its first quarter financial supplement. The press release and the financial supplement are attached hereto as Exhibit 99.1 and Exhibit 99.2, respectively, and are hereby incorporated herein by reference.

Item 9.01.    Financial Statements, Pro Forma Financial Information and Exhibits.
 
(c)	Exhibits	

Exhibit
  Number  	  	  Description	
		
99.1	  	Press release, dated April 24, 2007, reporting first quarter results	
		
99.2	  	First Quarter 2007 Financial Supplement	

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

ACE LIMITED	
		
By:	 	/s/ Philip V. Bancroft     	
	 	Philip V. Bancroft	
	 	Chief Financial Officer 	
 
DATE: April 24, 2007

EXHIBIT INDEX

  Number  	  	  Description  	  	  Method of Filing  	
			
99.1	  	Press release, dated April 24, 2007, reporting first quarter results	  	Furnished herewith	
			
99.2	  	First Quarter 2007 Financial Supplement	  	Furnished herewith	

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

	 	Investor Contact:    	  	Helen M. Wilson	
	 		  	(441) 299-9283	
	 		  	helen.wilson@ace.bm	
			
	 	Media Contact:	  	Robert T. Grieves	
	 		  	(212) 827-4444	
	 		  	robert.grieves@ace-ina.com	

ACE LIMITED REPORTS FIRST QUARTER 2007 NET INCOME OF $701 MILLION AND
OPERATING INCOME OF $663 MILLION
 
HAMILTON, Bermuda, April 24, 2007 — ACE Limited (NYSE: ACE) today reported net income for the first quarter ended March 31, 2007 of $701 million or $2.10 per ordinary share after payment of preferred dividends, compared with net income of $489 million or $1.46 per share for the same quarter last year. Income excluding net realized gains (losses) was $663 million, or $1.98 per share, compared with $477 million or $1.43 per share for the same quarter of last year. (1 )  The first quarter 2006 results included an $80 million pre-tax charge pertaining to the settlement with certain governmental agencies of their investigations of various insurance industry business practices. The combined ratio for the first quarter was 87.1%. Annualized return on average equity based on the first quarter was 18.5%. (3 )
 
First Quarter Summary
(in millions, except per share amounts)
(Unaudited)
																			
 	  	 	  	 	  	 	  	(Per Share - Diluted)	
 	  	2007	  	2006	  	Change	  	 	  	2007	  	2006	  	Change	
								
Net income	  	$	701	  	$	489	  	43%	  		  	$	2.10	  	$	1.46	  	44%	
								
Net realized gains (losses), net of tax	  	 	38	  	 	8	  	—  	  		  	 	0.12	  	 	0.02	  	—  	
								
Cumulative effect, net of tax ( 2 )	  	 	—  	  	 	4	  	—  	  		  	 	—  	  	 	0.01	  	—  	
Income excluding net realized gains (losses) and cumulative effect, net of tax (1)	  	 	663	  	 	477	  	39%	  		  	 	1.98	  	 	1.43	  	38%	
Investigation-related settlement charge, net of tax	  	 	—  	  	 	66	  	—  	  		  	 	—  	  	 	0.20	  	—  	
Income excluding net realized gains (losses), investigation-related settlement charge and cumulative effect (1 )	  	$	663	  	$	543	  	22%	  		  	$	1.98	  	$	1.63	  	21%	
Average shares outstanding	  			  			  		  		  	 	328.9	  	 	325.7	  		

Evan Greenberg, President and Chief Executive Officer of ACE Limited, commented: “ACE had a very strong start to the year. We produced record net and operating income for the first quarter, and our tangible book value
 
Page 1/6

per share grew at a 22% annual pace. The quality of earnings was excellent, with strong contributions from both underwriting and investment income. Net written premium growth was in line with market conditions. Globally, we are maintaining underwriting discipline and avoiding business where prices and terms don’t meet our standards while driving for growth in those areas where we see opportunity.”
 
Other first quarter operating highlights were as follows:
 
 	•	 	P&C net premiums written decreased 2% over the prior year quarter. Insurance net premiums written increased 2% and reinsurance net premiums written decreased 21%.	
 	•	 	P&C net premiums earned increased 9% over the prior year quarter. Insurance net premiums earned increased 12% and reinsurance net premiums earned decreased 8%.	
 	•	 	The combined ratio was 87.1% for the first quarter compared with 90.6% for the prior year quarter which included an $80 million investigation settlement charge.	
 	•	 	P&C underwriting income was $384 million for the first quarter.	
 	•	 	Operating cash flow amounted to $1.2 billion for the first quarter.	
 	•	 	Invested assets increased by $1.8 billion or 5% during the first quarter to $38.9 billion.	
 	•	 	Net investment income in the first quarter increased 22% over the prior year quarter, to $451 million.	
 	•	 	Shareholders’ equity at March 31, 2007 increased 5% from year-end 2006, to $14.9 billion.	
 	•	 	Tangible equity ( 1 )  at March 31, 2007 rose to $12.2 billion, a gain of 6% from year-end 2006.	

 	•	 	Return on average equity for the first quarter was 18.5%; excluding FAS 115, it was 19.4% ( 3 ) .	

 	•	 	Book value per share as of March 31, 2007 increased $1.84 from December 31, 2006 to $43.87 (4) .	

 	•	 	Tangible book value per share as of March 31, 2007 increased 6% from December 31, 2006 to $35.55 (1) .	
 
Details of our first quarter 2007 financial results for our business segments are available in the financial supplement. Key segment items include:
 
 	•	 	Insurance-North American: Net premiums written increased 1% over the prior year quarter. The combined ratio was 88.4%.	
 
 	•	 	Insurance-Overseas General: Net premiums written increased 4% over the prior year quarter. The combined ratio was 85.4%.	
 
 	•	 	Global Reinsurance: Net premiums written decreased 21% over the prior year quarter. The combined ratio was 78.0%.	
 
 	•	 	Life Insurance and Reinsurance: Net premiums written increased 44% over the prior year quarter. Income excluding net realized gains (losses) increased 39% to $43 million over the prior year quarter (1) .	
 
Please refer to the ACE Limited Financial Supplement dated March 31, 2007, which is posted on the Company’s website in the Investor Information section, and access Financial Reports for more detailed information on individual segment performance, together with additional disclosure on reinsurance recoverables, loss reserves, investment portfolio and capital structure. The URL reference is: http://media.corporate-ir.net/media_files/nys/ace/reports/fin_supp_march_31_2007.xls . (Due to the length of this URL, it may be necessary to copy and paste this hyperlink into your Internet browser’s URL address field.)
 
ACE will host its first quarter earnings conference call and webcast on Wednesday, April 25, 2007 beginning at 8:30 a.m. ET. The earnings conference call will be available via live and archived webcast at www.acelimited.com or by dialing 800-819-9193 (within the United States) or 913-981-4911 (international); passcode 1477658. Please refer to the ACE Limited website in the Investor Information section under Calendar of Events for details. A replay of the call will be available from approximately 11:30 a.m. ET on Wednesday, April 25, 2007 until Friday, May 25, 2007. To listen to the replay, dial: 888-203-1112 (in the United States) or 719-457-0820 (international); passcode 1477658.
 
Page 2/6

The ACE Group of Companies is a global leader in insurance and reinsurance serving a diverse group of clients. Headed by ACE Limited, a component of the Standard & Poor’s 500 stock index, the ACE Group conducts its business on a worldwide basis with operating subsidiaries in more than 50 countries. Additional information can be found at: www.acelimited.com .
 
Cautionary Statement Regarding Forward-Looking Statements:
 
Any forward-looking statements made in this press release reflect the Company’s current views with respect to future events and financial performance and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements involve risks and uncertainties, which may cause actual results to differ materially from those set forth in these statements. For example, the Company’s forward-looking statements could be affected by competition, pricing and policy term trends, the levels of new and renewal business achieved, market acceptance, changes in demand, the frequency of unpredictable catastrophic events, actual loss experience, uncertainties in the reserving or settlement process, new theories of liability, judicial, legislative, regulatory and other governmental developments, litigation tactics and developments, investigation developments and actual settlement terms, the amount and timing of reinsurance recoverable, credit developments among reinsurers, actual market developments, rating agency action, possible terrorism or the outbreak and effects of war and economic, political, regulatory, insurance and reinsurance business conditions, as well as management’s response to these factors, and other factors identified in the Company’s filings with the Securities and Exchange Commission. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the dates on which they are made. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

1 Non-GAAP Financial Measures:
Operating Income or Income excluding net realized gains (losses) and cumulative effect, net of tax is a common performance measurement for insurance companies. We believe this presentation enhances the understanding of our results of operations by highlighting the underlying profitability of our insurance business. We exclude net realized gains (losses) because the amount of these gains (losses) is heavily influenced by, and fluctuates in part according to, the availability of market opportunities. We exclude the cumulative effect of a change in accounting principle net of tax because this amount resulted in a one-time adjustment to income.
Underwriting income is calculated by subtracting losses and loss expenses, life and annuity benefits, policy acquisition costs and administrative expenses from net premiums earned. We use underwriting income and operating ratios to monitor the results of our operations without the impact of certain factors, including net investment income, other (income) expense, interest and income tax expense and net realized gains (losses). We believe the use of these measures enhances the understanding of our results of operations by highlighting the underlying profitability of our insurance business.
Tangible shareholders’ equity is shareholders’ equity less goodwill. See reconciliation of Non-GAAP Financial Measures on page 20 in the financial supplement.
These measures should not be viewed as a substitute for net income determined in accordance with generally accepted accounting principles (GAAP).
2 The cumulative effect is a benefit resulting from the inclusion of a forfeiture rate on restricted stock in our stock compensation expense calculations, as required under Financial Accounting Standard (FAS) 123R.
3 Calculated using income excluding net realized gains (losses).
4 Book value per ordinary share is ordinary shareholders’ equity divided by the shares outstanding.
 
Page 3/6

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

 	  	March 31
2007	  	December 31
2006	
 	  	(Unaudited)	  	 	
Assets	  			  			
Total investments	  	$	38,320	  	$	36,601	
Cash	  	 	639	  	 	565	
Insurance and reinsurance balances receivable	  	 	3,689	  	 	3,580	
Reinsurance recoverable	  	 	14,374	  	 	14,580	
Other assets	  	 	12,752	  	 	11,809	
	  	 	 	  	 	 	
Total assets	  	$	69,774	  	$	67,135	
	  	 	 	  	 	 	
Liabilities	  			  			
Unpaid losses and loss expenses	  	$	35,813	  	$	35,517	
Unearned premiums	  	 	6,670	  	 	6,437	
Other liabilities	  	 	12,332	  	 	10,903	
	  	 	 	  	 	 	
Total liabilities	  	$	54,815	  	$	52,857	
	  	 	 	  	 	 	
Shareholders’ equity	  			  			
Total shareholders’ equity	  	$	14,959	  	$	14,278	
	  	 	 	  	 	 	
Total liabilities and shareholders’ equity	  	$	69,774	  	$	67,135	
	  	 	 	  	 	 	
Book value per ordinary share (4) 	  	$	43.87	  	$	42.03	
 
Page 4/6

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

 	  	Three Months Ended
March 31	 	
 	  	2007	 	    	2006	 	
Gross premiums written	  	$	4,496	 	    	$	4,511	 	
Net premiums written	  	 	3,270	 	    	 	3,310	 	
Net premiums earned	  	 	3,082	 	    	 	2,805	 	
Losses and loss expenses	  	 	1,860	 	    	 	1,680	 	
Life and annuity benefits	  	 	36	 	    	 	28	 	
Policy acquisition costs	  	 	417	 	    	 	418	 	
Administrative expenses	  	 	356	 	    	 	398	 	
	  	 	 	 	    	 	 	 	
Underwriting income (1 )	  	 	413	 	    	 	281	 	
			
Net investment income	  	 	451	 	    	 	369	 	
Net realized gains (losses)	  	 	16	 	    	 	7	 	
Interest expense	  	 	46	 	    	 	43	 	
Other (income) expense	  	 	4	 	    	 	(5	)	
Income tax expense (benefit)	  	 	129	 	    	 	134	 	
Cumulative effect, net of tax	  	 	—  	 	    	 	4	 	
	  	 	 	 	    	 	 	 	
Net income	  	 	701	 	    	 	489	 	
Preference shares dividend	  	 	(11	)	    	 	(11	)	
	  	 	 	 	    	 	 	 	
Net income available to holders of ordinary shares	  	$	690	 	    	$	478	 	

Diluted earnings per share:	  				    				
Income excluding net realized gains (losses) and cumulative effect (1)	  	$	1.98	 	    	$	1.43	 	
			
Net income	  	$	2.10	 	    	$	1.46	 	
			
Weighted average diluted shares outstanding	  	 	328.9	 	    	 	325.7	 	
Loss and loss expense ratio	  	 	62.1	%	    	 	61.2	%	
Policy acquisition cost ratio	  	 	13.5	%	    	 	15.1	%	
Administrative expense ratio	  	 	11.5	%	    	 	14.3	%	
Combined ratio	  	 	87.1	%	    	 	90.6	%	
 
Ratios exclude life  insurance and reinsurance business
 
Page 5/6

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

 	  	Three Months Ended
March 31	 	
 	  	2007	 	 	2006	 	
Gross Premiums Written	  				 				
			
Insurance - North American	  	$	2,269	 	 	$	2,262	 	
Insurance - Overseas General	  	 	1,659	 	 	 	1,584	 	
Global Reinsurance	  	 	478	 	 	 	604	 	
Life Insurance and Reinsurance	  	 	90	 	 	 	61	 	
	  	 	 	 	 	 	 	 	
Total	  	$	4,496	 	 	$	4,511	 	

Net Premiums Written	  				 				
			
Insurance - North American	  	$	1,514	 	 	$	1,503	 	
Insurance - Overseas General	  	 	1,192	 	 	 	1,146	 	
Global Reinsurance	  	 	476	 	 	 	600	 	
Life Insurance and Reinsurance	  	 	88	 	 	 	61	 	
	  	 	 	 	 	 	 	 	
Total	  	$	3,270	 	 	$	3,310	 	

Net Premiums Earned	  				 				
			
Insurance - North American	  	$	1,539	 	 	$	1,334	 	
Insurance - Overseas General	  	 	1,112	 	 	 	1,039	 	
Global Reinsurance	  	 	343	 	 	 	371	 	
Life Insurance and Reinsurance	  	 	88	 	 	 	61	 	
	  	 	 	 	 	 	 	 	
Total	  	$	3,082	 	 	$	2,805	 	

Income Excluding Net Realized Gains (Losses) and Cumulative Effect (1) 	  				 				
			
Insurance - North American	  	$	298	 	 	$	266	 	
Insurance - Overseas General	  	 	215	 	 	 	159	 	
Global Reinsurance	  	 	132	 	 	 	119	 	
Life Insurance and Reinsurance	  	 	43	 	 	 	31	 	
Corporate	  	 	(25	)	 	 	(98	)	
	  	 	 	 	 	 	 	 	
Total	  	$	663	 	 	$	477	 	

Page 6/6
  
Exhibit 99.2

 
			
	    	Financial Supplement
 
March 31, 2007	
		
Investor Contact
 
Helen M. Wilson
Phone: (441) 299-9283
Fax: (441) 292-8675	    	This report is for informational purposes only. It should be read in conjunction with documents filed by ACE Limited with the Securities and Exchange Commission, including the most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q.	
		
email: investorrelations@ace.bm	    	Cautionary Statement Regarding Forward-Looking Statements:	
		
	    	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, the levels of new and renewal business achieved, market acceptance, changes in demand, actual market developments, rating agency action, possible terrorism or the outbreak and effects of war. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the dates on which they are made. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.	

					
	  	ACE Limited
Financial Supplement Table of Contents	  		

 	  	 	  	Page	
I.	  	Financial Highlights	  		
	  	- Consolidated Financial Highlights	  	1	
			
II.	  	Consolidated Results	  		
	  	- Consolidated Results - Consecutive Quarters	  	2	
	  	- Summary Consolidated Balance Sheets	  	3	
	  	- Consolidated Premiums by Line of Business	  	4	
	  	- Consolidating Statement of Operations	  	5	
			
III.	  	Segment Results	  		
	  	- Insurance-North American	  	6	
	  	- Insurance-Overseas General	  	7	
	  	- Global Reinsurance	  	8-9	
	  	- Life Insurance and Reinsurance	  	10	
			
IV.	  	Balance Sheet Details	  		
	  	- Loss Reserve Rollforward	  	11	
	  	- Reinsurance Recoverable Analysis	  	12-15	
	  	- Investment Portfolio	  	16	
	  	- Net Realized and Unrealized Gains (Losses)	  	17	
	  	- Capital Structure	  	18	
	  	- Computation of Basic and Diluted Earnings Per Share	  	19	
			
V.	  	Other Disclosures	  		
	  	- Non-GAAP Financial Measures	  	20	
	  	- Book Value per Ordinary Share	  	21	
	  	- Comprehensive Income	  	22	
	  	- Glossary	  	23	

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

 	  	Three months ended March 31	 	 	 	 	
 	  	2007	 	 	2006	 	 	% Change
1Q-07 vs.
1Q-06	 	
Gross premiums written	  	$	4,496	 	 	$	4,511	 	 	0	%	
				
Net premiums written	  	$	3,270	 	 	$	3,310	 	 	-1	%	
				
Net premiums earned	  	$	3,082	 	 	$	2,805	 	 	10	%	
				
Net investment income	  	$	451	 	 	$	369	 	 	22	%	
				
Net income	  	$	701	 	 	$	489	 	 	43	%	
				
Income excluding net realized gains (losses) and cumulative effect (1)	  	$	663	 	 	$	477	 	 	39	%	
				
Comprehensive income	  	$	763	 	 	$	407	 	 	87	%	
				
Operating cash flow	  	$	1,236	 	 	$	1,086	 	 	14	%	
				
Combined ratio	  				 				 			
Loss and loss expense ratio	  	 	62.1	%	 	 	61.2	%	 			
Underwriting and administrative expense ratio	  	 	25.0	%	 	 	29.4	%	 			
	  	 	 	 	 	 	 	 	 			
Combined ratio	  	 	87.1	%	 	 	90.6	%	 			
				
Annualized ROE*	  	 	18.5	%	 	 	16.3	%	 			
Annualized ROE, excluding FAS 115*	  	 	19.4	%	 	 	16.7	%	 			
				
Effective tax rate on income excluding net realized gains (losses) and cumulative effect	  	 	19	%	 	 	22	%	 			
				
Diluted earnings per share	  				 				 			
Income excluding net realized gains (losses) and cumulative effect (1)	  	$	1.98	 	 	$	1.43	 	 	38	%	
Net income	  	$	2.10	 	 	$	1.46	 	 	44	%	
				
Book value per ordinary share	  	$	43.87	 	 	$	35.68	 	 	23	%	
Tangible book value per ordinary share	  	$	35.55	 	 	$	27.37	 	 	30	%	
				
Weighted average basic ordinary shares outstanding	  	 	324.1	 	 	 	321.1	 	 			
Weighted average diluted ordinary shares outstanding	  	 	328.9	 	 	 	325.7	 	 			
Debt/ total capitalization	  	 	14.8	%	 	 	14.5	%	 			
 
(1)	See page 20 Non-GAAP Financial Measures.	
 
*	Calculated using income excluding net realized gains (losses) and cumulative effect of a change in accounting principle (cumulative effect)	

Financial Highlights	  	Page 1	

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

 	  	1Q-07	 	 	4Q-06	 	 	3Q-06	 	 	2Q-06	 	 	1Q-06	 	 	Full Year
2006	 	
Property and Casualty	  				 				 				 				 				 				
Gross premiums written	  	$	4,406	 	 	$	3,932	 	 	$	4,228	 	 	$	4,517	 	 	$	4,450	 	 	$	17,127	 	
Net premiums written	  	 	3,182	 	 	 	2,786	 	 	 	2,721	 	 	 	3,000	 	 	 	3,249	 	 	 	11,756	 	
Net premiums earned	  	 	2,994	 	 	 	2,948	 	 	 	3,019	 	 	 	2,840	 	 	 	2,744	 	 	 	11,551	 	
Losses and loss expenses	  	 	1,860	 	 	 	1,824	 	 	 	1,818	 	 	 	1,748	 	 	 	1,680	 	 	 	7,070	 	
Policy acquisition costs	  	 	406	 	 	 	424	 	 	 	430	 	 	 	423	 	 	 	412	 	 	 	1,689	 	
Administrative expenses	  	 	344	 	 	 	353	 	 	 	345	 	 	 	332	 	 	 	391	 	 	 	1,421	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
P&C underwriting income	  	$	384	 	 	$	347	 	 	$	426	 	 	$	337	 	 	$	261	 	 	$	1,371	 	
							
Life underwriting income excluding investment income	  	 	29	 	 	 	25	 	 	 	25	 	 	 	20	 	 	 	20	 	 	 	90	 	
Net investment income	  	 	451	 	 	 	428	 	 	 	414	 	 	 	390	 	 	 	369	 	 	 	1,601	 	
Net realized gains (losses)	  	 	16	 	 	 	15	 	 	 	(113	)	 	 	(7	)	 	 	7	 	 	 	(98	)	
Interest expense	  	 	46	 	 	 	42	 	 	 	46	 	 	 	45	 	 	 	43	 	 	 	176	 	
Other (income) expense	  	 	4	 	 	 	(16	)	 	 	(2	)	 	 	(12	)	 	 	(5	)	 	 	(35	)	
Income tax expense (benefit)	  	 	129	 	 	 	124	 	 	 	130	 	 	 	134	 	 	 	134	 	 	 	522	 	
Cumulative effect of a change in accounting principle, net of tax	  	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	4	 	 	 	4	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income	  	$	701	 	 	$	665	 	 	$	578	 	 	$	573	 	 	$	489	 	 	$	2,305	 	
							
Net realized gains (losses)	  	 	16	 	 	 	15	 	 	 	(113	)	 	 	(7	)	 	 	7	 	 	 	(98	)	
Tax expense (benefit) on net realized gains (losses)	  	 	(22	)	 	 	(7	)	 	 	(39	)	 	 	(1	)	 	 	(1	)	 	 	(48	)	
Cumulative effect of a change in accounting principle, net of tax	  	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	4	 	 	 	4	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income excluding net realized gains (losses) and cumulative effect (2)	  	$	663	 	 	$	643	 	 	$	652	 	 	$	579	 	 	$	477	 	 	$	2,351	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
% Change versus prior year period (1) 	  				 				 				 				 				 				
Property and Casualty net premiums written	  	 	-2	%	 	 	9	%	 	 	-4	%	 	 	5	%	 	 	-2	%	 	 	2	%	
Property and Casualty net premiums earned	  	 	9	%	 	 	6	%	 	 	0	%	 	 	-1	%	 	 	-3	%	 	 	0	%	
							
Other ratios	  				 				 				 				 				 				
Net premiums written/gross premiums written	  	 	72	%	 	 	71	%	 	 	64	%	 	 	66	%	 	 	73	%	 	 	69	%	
Effective tax rate on income excluding net realized gains (losses) and cumulative effect	  	 	19	%	 	 	17	%	 	 	21	%	 	 	19	%	 	 	22	%	 	 	20	%	
							
Combined ratio (1) 	  				 				 				 				 				 				
Loss and loss expense ratio	  	 	62.1	%	 	 	61.8	%	 	 	60.2	%	 	 	61.6	%	 	 	61.2	%	 	 	61.2	%	
Policy acquisition cost ratio	  	 	13.5	%	 	 	14.4	%	 	 	14.2	%	 	 	14.9	%	 	 	15.1	%	 	 	14.6	%	
Administrative expense ratio	  	 	11.5	%	 	 	12.0	%	 	 	11.4	%	 	 	11.7	%	 	 	14.3	%	 	 	12.3	%	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Combined ratio	  	 	87.1	%	 	 	88.2	%	 	 	85.8	%	 	 	88.2	%	 	 	90.6	%	 	 	88.1	%	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Large losses and other items (1) 	  				 				 				 				 				 				
Catastrophe and other large losses (before tax)	  	$	34	 	 	$	6	 	 	$	6	 	 	$	2	 	 	$	3	 	 	$	17	 	
Prior period development - unfavorable (favorable)	  	$	(18	)	 	$	17	 	 	$	17	 	 	$	(14	)	 	$	(32	)	 	$	(12	)	
 
(1)	Property and casualty excluding Life is presented to allow for comparison and analysis with earnings guidance. This is a non-GAAP measure.	
 
(2)	See page 20 Non-GAAP Financial Measures.	

Consolidated Results	  	Page 2	

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

 	  	March 31
2007	  	December 31
2006	
 	  	(Unaudited)	  	(Audited)	
Assets	  			  			
Fixed maturities available for sale, at fair value	  	$	29,934	  	$	28,540	
Fixed maturities held to maturity, at amortized cost	  	 	3,060	  	 	3,047	
Equity securities, at fair value	  	 	1,772	  	 	1,713	
Short-term investments, at fair value	  	 	2,658	  	 	2,456	
Other investments	  	 	896	  	 	845	
	  	 	 	  	 	 	
Total investments	  	 	38,320	  	 	36,601	
			
Cash	  	 	639	  	 	565	
Securities lending collateral	  	 	2,905	  	 	2,171	
Insurance and reinsurance balances receivable	  	 	3,689	  	 	3,580	
Reinsurance recoverable	  	 	14,374	  	 	14,580	
Deferred policy acquisition costs	  	 	1,133	  	 	1,077	
Prepaid reinsurance premiums	  	 	1,621	  	 	1,586	
Goodwill	  	 	2,731	  	 	2,731	
Deferred tax assets	  	 	1,192	  	 	1,165	
Investments in partially owned insurance companies	  	 	804	  	 	789	
Other assets	  	 	2,366	  	 	2,290	
	  	 	 	  	 	 	
Total assets	  	$	69,774	  	$	67,135	
	  	 	 	  	 	 	
Liabilities	  			  			
Unpaid losses and loss expenses	  	$	35,813	  	$	35,517	
Unearned premiums	  	 	6,670	  	 	6,437	
Future policy benefits for life and annuity contracts	  	 	521	  	 	518	
Insurance and reinsurance balances payable	  	 	2,511	  	 	2,449	
Deposit liabilities	  	 	327	  	 	335	
Securities lending payable	  	 	2,905	  	 	2,171	
Payable for securities purchased	  	 	1,338	  	 	1,286	
Accounts payable, accrued expenses and other liabilities	  	 	1,514	  	 	1,541	
Income taxes payable	  	 	265	  	 	156	
Short-term debt	  	 	581	  	 	578	
Long-term debt	  	 	2,061	  	 	1,560	
Trust preferred securities	  	 	309	  	 	309	
	  	 	 	  	 	 	
Total liabilities	  	 	54,815	  	 	52,857	
			
Shareholders’ equity	  			  			
Total shareholders’ equity, excl. AOCI	  	 	14,181	  	 	13,562	
Accumulated other comprehensive income (AOCI)	  	 	778	  	 	716	
	  	 	 	  	 	 	
Total shareholders’ equity	  	 	14,959	  	 	14,278	
	  	 	 	  	 	 	
Total liabilities and shareholders’ equity	  	$	69,774	  	$	67,135	
	  	 	 	  	 	 	
Book value per ordinary share (1) 	  	$	43.87	  	$	42.03	
Tangible book value per ordinary share (1) 	  	$	35.55	  	$	33.66	
 
(1)	See page 20 Non-GAAP Financial Measures.	

Consol Bal Sheet	  	Page 3	

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

 	  	1Q-07	  	% of
Total
Consolidated	 	 	1Q-06	  	% of
Total
Consolidated	 	 	% Change
1Q-07 vs.
1Q-06	 	
Net premiums written	  			 			  			 			
Property and all other	  	$	1,003	  	30	%	 	$	1,034	  	31	%	 	-3	%	
Casualty	  	 	1,759	  	54	%	 	 	1,848	  	56	%	 	-5	%	
Personal accident	  	 	420	  	13	%	 	 	367	  	11	%	 	14	%	
	  	 	 	  	 	 	 	 	 	  	 	 	 	 	 	
Total P&C	  	 	3,182	  	97	%	 	 	3,249	  	98	%	 	-2	%	
	  	 	 	  	 	 	 	 	 	  	 	 	 	 	 	
Life	  	 	88	  	3	%	 	 	61	  	2	%	 	44	%	
	  	 	 	  	 	 	 	 	 	  	 	 	 	 	 	
Total Consolidated	  	$	3,270	  	100	%	 	$	3,310	  	100	%	 	-1	%	
	  	 	 	  	 	 	 	 	 	  	 	 	 	 	 	
Net premiums earned	  			  			 			  			 			
Property and all other	  	$	853	  	27	%	 	$	817	  	29	%	 	4	%	
Casualty	  	 	1,747	  	57	%	 	 	1,591	  	57	%	 	10	%	
Personal accident	  	 	394	  	13	%	 	 	336	  	12	%	 	17	%	
	  	 	 	  	 	 	 	 	 	  	 	 	 	 	 	
Total P&C	  	 	2,994	  	97	%	 	 	2,744	  	98	%	 	9	%	
	  	 	 	  	 	 	 	 	 	  	 	 	 	 	 	
Life	  	 	88	  	3	%	 	 	61	  	2	%	 	44	%	
	  	 	 	  	 	 	 	 	 	  	 	 	 	 	 	
Total Consolidated	  	$	3,082	  	100	%	 	$	2,805	  	100	%	 	10	%	

			
Line of Business	  	Page 4	

			
	  	ACE Limited	
	  	Consolidating Statement of Operations	
	  	Three months ended March 31, 2007 and 2006	
	  	(in millions of U.S. dollars)	
	  	(Unaudited)	

 	 	Insurance -
North
American	 	 	Insurance -
Overseas
General	 	 	Global
Reinsurance	 	 	Corporate
& Other	 	 	Consolidated
P&C	 	 	Life Insurance
& Reinsurance	 	 	ACE
Consolidated	 	
March 31, 2007	 				 				 				 				 				 				 				
Gross premiums written	 	$	2,269	 	 	$	1,659	 	 	$	478	 	 	$	—  	 	 	$	4,406	 	 	$	90	 	 	$	4,496	 	
Net premiums written	 	 	1,514	 	 	 	1,192	 	 	 	476	 	 	 	—  	 	 	 	3,182	 	 	 	88	 	 	 	3,270	 	
Net premiums earned	 	 	1,539	 	 	 	1,112	 	 	 	343	 	 	 	—  	 	 	 	2,994	 	 	 	88	 	 	 	3,082	 	
Losses and loss expenses	 	 	1,111	 	 	 	564	 	 	 	185	 	 	 	—  	 	 	 	1,860	 	 	 	—  	 	 	 	1,860	 	
Life and annuity benefits	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	36	 	 	 	36	 	
Policy acquisition costs	 	 	116	 	 	 	224	 	 	 	66	 	 	 	—  	 	 	 	406	 	 	 	11	 	 	 	417	 	
Administrative expenses	 	 	133	 	 	 	162	 	 	 	17	 	 	 	32	 	 	 	344	 	 	 	12	 	 	 	356	 	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Underwriting income (loss)	 	 	179	 	 	 	162	 	 	 	75	 	 	 	(32	)	 	 	384	 	 	 	29	 	 	 	413	 	
								
Net investment income	 	 	241	 	 	 	104	 	 	 	66	 	 	 	28	 	 	 	439	 	 	 	12	 	 	 	451	 	
Net realized gains (losses)	 	 	37	 	 	 	(26	)	 	 	6	 	 	 	3	 	 	 	20	 	 	 	(4	)	 	 	16	 	
Interest expense	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	46	 	 	 	46	 	 	 	—  	 	 	 	46	 	
Other (income) expense	 	 	9	 	 	 	3	 	 	 	1	 	 	 	(9	)	 	 	4	 	 	 	—  	 	 	 	4	 	
Income tax expense (benefit)	 	 	128	 	 	 	40	 	 	 	7	 	 	 	(44	)	 	 	131	 	 	 	(2	)	 	 	129	 	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income	 	 	320	 	 	 	197	 	 	 	139	 	 	 	6	 	 	 	662	 	 	 	39	 	 	 	701	 	
								
Net realized gains (losses)	 	 	37	 	 	 	(26	)	 	 	6	 	 	 	3	 	 	 	20	 	 	 	(4	)	 	 	16	 	
Tax expense (benefit) on net realized gains (losses)	 	 	15	 	 	 	(8	)	 	 	(1	)	 	 	(28	)	 	 	(22	)	 	 	—  	 	 	 	(22	)	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income (loss) excluding net realized gains (losses) (1)	 	$	298	 	 	$	215	 	 	$	132	 	 	$	(25	)	 	$	620	 	 	$	43	 	 	$	663	 	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
March 31, 2006	 				 				 				 				 				 				 				
Gross premiums written	 	$	2,262	 	 	$	1,584	 	 	$	604	 	 	$	—  	 	 	$	4,450	 	 	$	61	 	 	$	4,511	 	
Net premiums written	 	 	1,503	 	 	 	1,146	 	 	 	600	 	 	 	—  	 	 	 	3,249	 	 	 	61	 	 	 	3,310	 	
Net premiums earned	 	 	1,334	 	 	 	1,039	 	 	 	371	 	 	 	—  	 	 	 	2,744	 	 	 	61	 	 	 	2,805	 	
Losses and loss expenses	 	 	916	 	 	 	566	 	 	 	197	 	 	 	1	 	 	 	1,680	 	 	 	—  	 	 	 	1,680	 	
Life and annuity benefits	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	28	 	 	 	28	 	
Policy acquisition costs	 	 	144	 	 	 	194	 	 	 	74	 	 	 	—  	 	 	 	412	 	 	 	6	 	 	 	418	 	
Administrative expenses	 	 	116	 	 	 	145	 	 	 	14	 	 	 	116	 	 	 	391	 	 	 	7	 	 	 	398	 	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Underwriting income (loss)	 	 	158	 	 	 	134	 	 	 	86	 	 	 	(117	)	 	 	261	 	 	 	20	 	 	 	281	 	
								
Net investment income	 	 	203	 	 	 	85	 	 	 	48	 	 	 	23	 	 	 	359	 	 	 	10	 	 	 	369	 	
Net realized gains (losses)	 	 	(6	)	 	 	4	 	 	 	(6	)	 	 	23	 	 	 	15	 	 	 	(8	)	 	 	7	 	
Interest expense	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	43	 	 	 	43	 	 	 	—  	 	 	 	43	 	
Other (income) expense	 	 	(1	)	 	 	6	 	 	 	3	 	 	 	(13	)	 	 	(5	)	 	 	—  	 	 	 	(5	)	
Income tax expense (benefit)	 	 	94	 	 	 	56	 	 	 	12	 	 	 	(27	)	 	 	135	 	 	 	(1	)	 	 	134	 	
Cumulative effect of a change in accounting principle, net of tax	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	4	 	 	 	4	 	 	 	—  	 	 	 	4	 	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income (loss)	 	 	262	 	 	 	161	 	 	 	113	 	 	 	(70	)	 	 	466	 	 	 	23	 	 	 	489	 	
								
Net realized gains (losses)	 	 	(6	)	 	 	4	 	 	 	(6	)	 	 	23	 	 	 	15	 	 	 	(8	)	 	 	7	 	
Tax expense (benefit) on net realized gains (losses)	 	 	(2	)	 	 	2	 	 	 	—  	 	 	 	(1	)	 	 	(1	)	 	 	—  	 	 	 	(1	)	
Cumulative effect of a change in accounting principle, net of tax	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	4	 	 	 	4	 	 	 	—  	 	 	 	4	 	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income (loss) excluding net realized gains (losses) (1)	 	$	266	 	 	$	159	 	 	$	119	 	 	$	(98	)	 	$	446	 	 	$	31	 	 	$	477	 	

(1)	See page 20 Non-GAAP Financial Measures.	

Segment 2007 Qtr	  	Page 5	

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

 	  	1Q-07	 	 	4Q-06	 	 	3Q-06	 	 	2Q-06	 	 	1Q-06	 	 	Full Year
2006	 	
Gross premiums written	  	$	2,269	 	 	$	2,236	 	 	$	2,550	 	 	$	2,615	 	 	$	2,262	 	 	$	9,663	 	
Net premiums written	  	 	1,514	 	 	 	1,476	 	 	 	1,459	 	 	 	1,502	 	 	 	1,503	 	 	 	5,940	 	
Net premiums earned	  	 	1,539	 	 	 	1,471	 	 	 	1,547	 	 	 	1,367	 	 	 	1,334	 	 	 	5,719	 	
Losses and loss expenses	  	 	1,111	 	 	 	1,054	 	 	 	1,090	 	 	 	966	 	 	 	916	 	 	 	4,026	 	
Policy acquisition costs	  	 	116	 	 	 	122	 	 	 	142	 	 	 	122	 	 	 	144	 	 	 	530	 	
Administrative expenses	  	 	133	 	 	 	132	 	 	 	129	 	 	 	125	 	 	 	116	 	 	 	502	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Underwriting income	  	 	179	 	 	 	163	 	 	 	186	 	 	 	154	 	 	 	158	 	 	 	661	 	
							
Net investment income	  	 	241	 	 	 	233	 	 	 	228	 	 	 	212	 	 	 	203	 	 	 	876	 	
Net realized gains (losses)	  	 	37	 	 	 	(11	)	 	 	(34	)	 	 	(32	)	 	 	(6	)	 	 	(83	)	
Interest expense	  	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	
Other (income) expense	  	 	9	 	 	 	(13	)	 	 	11	 	 	 	1	 	 	 	(1	)	 	 	(2	)	
Income tax expense (benefit)	  	 	128	 	 	 	89	 	 	 	74	 	 	 	95	 	 	 	94	 	 	 	352	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income	  	 	320	 	 	 	309	 	 	 	295	 	 	 	238	 	 	 	262	 	 	 	1,104	 	
							
Net realized gains (losses)	  	 	37	 	 	 	(11	)	 	 	(34	)	 	 	(32	)	 	 	(6	)	 	 	(83	)	
Tax expense (benefit) on net realized gains (losses)	  	 	15	 	 	 	(16	)	 	 	(32	)	 	 	(5	)	 	 	(2	)	 	 	(55	)	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income excluding net realized gains (losses) (1)	  	$	298	 	 	$	304	 	 	$	297	 	 	$	265	 	 	$	266	 	 	$	1,132	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Combined ratio	  				 				 				 				 				 				
Loss and loss expense ratio	  	 	72.2	%	 	 	71.7	%	 	 	70.4	%	 	 	70.7	%	 	 	68.7	%	 	 	70.4	%	
Policy acquisition cost ratio	  	 	7.5	%	 	 	8.3	%	 	 	9.1	%	 	 	8.9	%	 	 	10.9	%	 	 	9.2	%	
Administrative expense ratio	  	 	8.7	%	 	 	8.9	%	 	 	8.4	%	 	 	9.1	%	 	 	8.7	%	 	 	8.8	%	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Combined ratio	  	 	88.4	%	 	 	88.9	%	 	 	87.9	%	 	 	88.7	%	 	 	88.3	%	 	 	88.4	%	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Large losses and other items (before tax)	  				 				 				 				 				 				
Catastrophe and other large losses (before tax)	  	$	—  	 	 	$	—  	 	 	$	—  	 	 	$	—  	 	 	$	—  	 	 	$	—  	 	
Prior period development - unfavorable (favorable)	  	$	10	 	 	$	20	 	 	$	30	 	 	$	11	 	 	$	4	 	 	$	65	 	
							
% Change versus prior year period	  				 				 				 				 				 				
Net premiums written	  	 	1	%	 	 	16	%	 	 	-4	%	 	 	5	%	 	 	-5	%	 	 	2	%	
Net premiums earned	  	 	15	%	 	 	9	%	 	 	-3	%	 	 	-3	%	 	 	-3	%	 	 	0	%	
							
Other ratios	  				 				 				 				 				 				
Net premiums written/gross premiums written	  	 	67	%	 	 	66	%	 	 	57	%	 	 	57	%	 	 	66	%	 	 	61	%	
 
(1)	See page 20 Non-GAAP Financial Measures.	

Insurance-North American	  	Page 6	

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

 	  	1Q-07	 	 	4Q-06	 	 	3Q-06	 	 	2Q-06	 	 	1Q-06	 	 	Full Year
2006	 	
Gross premiums written	  	$	1,659	 	 	$	1,441	 	 	$	1,387	 	 	$	1,485	 	 	$	1,584	 	 	$	5,897	 	
Net premiums written	  	 	1,192	 	 	 	1,059	 	 	 	978	 	 	 	1,083	 	 	 	1,146	 	 	 	4,266	 	
Net premiums earned	  	 	1,112	 	 	 	1,097	 	 	 	1,099	 	 	 	1,086	 	 	 	1,039	 	 	 	4,321	 	
Losses and loss expenses	  	 	564	 	 	 	576	 	 	 	532	 	 	 	585	 	 	 	566	 	 	 	2,259	 	
Policy acquisition costs	  	 	224	 	 	 	226	 	 	 	217	 	 	 	219	 	 	 	194	 	 	 	856	 	
Administrative expenses	  	 	162	 	 	 	157	 	 	 	155	 	 	 	152	 	 	 	145	 	 	 	609	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Underwriting income	  	 	162	 	 	 	138	 	 	 	195	 	 	 	130	 	 	 	134	 	 	 	597	 	
							
Net investment income	  	 	104	 	 	 	97	 	 	 	97	 	 	 	91	 	 	 	85	 	 	 	370	 	
Net realized gains (losses)	  	 	(26	)	 	 	8	 	 	 	(32	)	 	 	4	 	 	 	4	 	 	 	(16	)	
Interest expense	  	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	
Other (income) expense	  	 	3	 	 	 	7	 	 	 	(3	)	 	 	—  	 	 	 	6	 	 	 	10	 	
Income tax expense (benefit)	  	 	40	 	 	 	43	 	 	 	63	 	 	 	44	 	 	 	56	 	 	 	206	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income	  	 	197	 	 	 	193	 	 	 	200	 	 	 	181	 	 	 	161	 	 	 	735	 	
							
Net realized gains (losses)	  	 	(26	)	 	 	8	 	 	 	(32	)	 	 	4	 	 	 	4	 	 	 	(16	)	
Tax expense (benefit) on net realized gains (losses)	  	 	(8	)	 	 	2	 	 	 	(6	)	 	 	5	 	 	 	2	 	 	 	3	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income excluding net realized gains (losses) (1)	  	$	215	 	 	$	187	 	 	$	226	 	 	$	182	 	 	$	159	 	 	$	754	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Combined ratio	  				 				 				 				 				 				
Loss and loss expense ratio	  	 	50.7	%	 	 	52.5	%	 	 	48.4	%	 	 	53.8	%	 	 	54.5	%	 	 	52.3	%	
Policy acquisition cost ratio	  	 	20.2	%	 	 	20.6	%	 	 	19.8	%	 	 	20.1	%	 	 	18.7	%	 	 	19.8	%	
Administrative expense ratio	  	 	14.5	%	 	 	14.3	%	 	 	14.0	%	 	 	14.1	%	 	 	13.9	%	 	 	14.1	%	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Combined ratio	  	 	85.4	%	 	 	87.4	%	 	 	82.2	%	 	 	88.0	%	 	 	87.1	%	 	 	86.2	%	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Large losses and other items	  				 				 				 				 				 				
Catastrophe and other large losses (before tax)	  	$	15	 	 	$	—  	 	 	$	3	 	 	$	—  	 	 	$	—  	 	 	$	3	 	
Prior period development - unfavorable (favorable)	  	$	(21	)	 	$	4	 	 	$	(16	)	 	$	(21	)	 	$	(39	)	 	$	(72	)	
							
% Change versus prior year period	  				 				 				 				 				 				
Net premiums written	  	 	4	%	 	 	4	%	 	 	5	%	 	 	2	%	 	 	-4	%	 	 	2	%	
Net premiums earned	  	 	7	%	 	 	5	%	 	 	7	%	 	 	1	%	 	 	-4	%	 	 	2	%	
							
Other ratios	  				 				 				 				 				 				
Net premiums written/gross premiums written	  	 	72	%	 	 	73	%	 	 	71	%	 	 	73	%	 	 	72	%	 	 	72	%	
 
(1)	See page 20 Non-GAAP Financial Measures.	

Insurance-Overseas General	  	Page 7	

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

 	  	1Q-07	 	 	4Q-06	 	 	3Q-06	 	 	2Q-06	 	 	1Q-06	 	 	Full Year
2006	 	
Gross premiums written	  	$	478	 	 	$	255	 	 	$	291	 	 	$	417	 	 	$	604	 	 	$	1,567	 	
Net premiums written	  	 	476	 	 	 	251	 	 	 	284	 	 	 	415	 	 	 	600	 	 	 	1,550	 	
Net premiums earned	  	 	343	 	 	 	380	 	 	 	373	 	 	 	387	 	 	 	371	 	 	 	1,511	 	
Losses and loss expenses	  	 	185	 	 	 	194	 	 	 	196	 	 	 	197	 	 	 	197	 	 	 	784	 	
Policy acquisition costs	  	 	66	 	 	 	76	 	 	 	71	 	 	 	82	 	 	 	74	 	 	 	303	 	
Administrative expenses	  	 	17	 	 	 	14	 	 	 	16	 	 	 	18	 	 	 	14	 	 	 	62	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Underwriting income	  	 	75	 	 	 	96	 	 	 	90	 	 	 	90	 	 	 	86	 	 	 	362	 	
							
Net investment income	  	 	66	 	 	 	62	 	 	 	56	 	 	 	55	 	 	 	48	 	 	 	221	 	
Net realized gains (losses)	  	 	6	 	 	 	17	 	 	 	2	 	 	 	(3	)	 	 	(6	)	 	 	10	 	
Interest expense	  	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	
Other (income) expense	  	 	1	 	 	 	2	 	 	 	1	 	 	 	2	 	 	 	3	 	 	 	8	 	
Income tax expense (benefit)	  	 	7	 	 	 	9	 	 	 	9	 	 	 	8	 	 	 	12	 	 	 	38	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income	  	 	139	 	 	 	164	 	 	 	138	 	 	 	132	 	 	 	113	 	 	 	547	 	
							
Net realized gains (losses)	  	 	6	 	 	 	17	 	 	 	2	 	 	 	(3	)	 	 	(6	)	 	 	10	 	
Tax expense (benefit) on net realized gains (losses)	  	 	(1	)	 	 	1	 	 	 	(1	)	 	 	(1	)	 	 	—  	 	 	 	(1	)	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income excluding net realized gains (losses) (1)	  	$	132	 	 	$	148	 	 	$	135	 	 	$	134	 	 	$	119	 	 	$	536	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Combined ratio	  				 				 				 				 				 				
Loss and loss expense ratio	  	 	53.8	%	 	 	50.9	%	 	 	52.5	%	 	 	51.0	%	 	 	53.0	%	 	 	51.8	%	
Policy acquisition cost ratio	  	 	19.2	%	 	 	20.1	%	 	 	19.0	%	 	 	21.2	%	 	 	20.0	%	 	 	20.1	%	
Administrative expense ratio	  	 	5.0	%	 	 	3.7	%	 	 	4.2	%	 	 	4.6	%	 	 	3.8	%	 	 	4.1	%	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Combined ratio	  	 	78.0	%	 	 	74.7	%	 	 	75.7	%	 	 	76.8	%	 	 	76.8	%	 	 	76.0	%	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Large losses and other items	  				 				 				 				 				 				
Catastrophe and other large losses (before tax)	  	$	19	 	 	$	6	 	 	$	3	 	 	$	2	 	 	$	3	 	 	$	14	 	
Prior period development - unfavorable (favorable)	  	$	(7	)	 	$	(7	)	 	$	3	 	 	$	(4	)	 	$	3	 	 	$	(5	)	
 
(1)	See page 20 Non-GAAP Financial Measures.	

Global Reinsurance	  	Page 8	

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

 	  	1Q-07	 	 	4Q-06	 	 	3Q-06	 	 	2Q-06	 	 	1Q-06	 	 	Full Year
2006	 	
% Change versus prior year period	  				 				 				 				 				 				
Net premiums written	  	 	-21	%	 	 	-9	%	 	 	-25	%	 	 	14	%	 	 	14	%	 	 	0	%	
Net premiums earned	  	 	-8	%	 	 	-4	%	 	 	-9	%	 	 	4	%	 	 	4	%	 	 	-1	%	
							
Other ratios	  				 				 				 				 				 				
Net premiums written/gross premiums written	  	 	100	%	 	 	98	%	 	 	98	%	 	 	100	%	 	 	99	%	 	 	99	%	
							
Global Reinsurance - By Division	  				 				 				 				 				 				
 	  	1Q-07	 	 	4Q-06	 	 	3Q-06	 	 	2Q-06	 	 	1Q-06	 	 	Full Year
2006	 	
Gross premiums written	  				 				 				 				 				 				
ACE Tempest Re Europe	  	$	112	 	 	$	58	 	 	$	60	 	 	$	56	 	 	$	104	 	 	$	278	 	
ACE Tempest Re USA	  	 	188	 	 	 	181	 	 	 	178	 	 	 	249	 	 	 	295	 	 	 	903	 	
ACE Tempest Re Bermuda	  	 	174	 	 	 	16	 	 	 	53	 	 	 	112	 	 	 	205	 	 	 	386	 	
ACE Tempest Re Canada	  	 	4	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total	  	$	478	 	 	$	255	 	 	$	291	 	 	$	417	 	 	$	604	 	 	$	1,567	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net premiums written	  				 				 				 				 				 				
ACE Tempest Re Europe	  	$	110	 	 	$	57	 	 	$	58	 	 	$	53	 	 	$	101	 	 	$	269	 	
ACE Tempest Re USA	  	 	188	 	 	 	181	 	 	 	177	 	 	 	249	 	 	 	295	 	 	 	902	 	
ACE Tempest Re Bermuda	  	 	174	 	 	 	13	 	 	 	49	 	 	 	113	 	 	 	204	 	 	 	379	 	
ACE Tempest Re Canada	  	 	4	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total	  	$	476	 	 	$	251	 	 	$	284	 	 	$	415	 	 	$	600	 	 	$	1,550	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net premiums earned	  				 				 				 				 				 				
ACE Tempest Re Europe	  	$	67	 	 	$	68	 	 	$	66	 	 	$	68	 	 	$	70	 	 	$	272	 	
ACE Tempest Re USA	  	 	187	 	 	 	216	 	 	 	210	 	 	 	231	 	 	 	215	 	 	 	872	 	
ACE Tempest Re Bermuda	  	 	88	 	 	 	96	 	 	 	97	 	 	 	88	 	 	 	86	 	 	 	367	 	
ACE Tempest Re Canada	  	 	1	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total	  	$	343	 	 	$	380	 	 	$	373	 	 	$	387	 	 	$	371	 	 	$	1,511	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net premiums written/gross premiums written	  				 				 				 				 				 				
							
ACE Tempest Re Europe	  	 	98	%	 	 	98	%	 	 	97	%	 	 	95	%	 	 	97	%	 	 	97	%	
ACE Tempest Re USA	  	 	100	%	 	 	100	%	 	 	99	%	 	 	100	%	 	 	100	%	 	 	100	%	
ACE Tempest Re Bermuda	  	 	100	%	 	 	81	%	 	 	92	%	 	 	101	%	 	 	100	%	 	 	98	%	
ACE Tempest Re Canada	  	 	100	%	 	 	NM	 	 	 	NM	 	 	 	NM	 	 	 	NM	 	 	 	NM	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total NPW/GPW	  	 	100	%	 	 	98	%	 	 	98	%	 	 	100	%	 	 	99	%	 	 	99	%	

			
Global Reinsurance 2	  	Page 9	

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

 	  	1Q-07	 	 	4Q-06	 	 	3Q-06	 	 	2Q-06	 	 	1Q-06	 	 	Full Year
2006	 	
Gross premiums written	  	$	90	 	 	$	78	 	 	$	69	 	 	$	66	 	 	$	61	 	 	$	274	 	
Net premiums written	  	 	88	 	 	 	78	 	 	 	69	 	 	 	66	 	 	 	61	 	 	 	274	 	
Net premiums earned	  	 	88	 	 	 	78	 	 	 	69	 	 	 	66	 	 	 	61	 	 	 	274	 	
Life and annuity benefits	  	 	36	 	 	 	32	 	 	 	29	 	 	 	34	 	 	 	28	 	 	 	123	 	
Policy acquisition costs	  	 	11	 	 	 	9	 	 	 	7	 	 	 	4	 	 	 	6	 	 	 	26	 	
Administrative expenses	  	 	12	 	 	 	12	 	 	 	8	 	 	 	8	 	 	 	7	 	 	 	35	 	
Net investment income	  	 	12	 	 	 	12	 	 	 	11	 	 	 	9	 	 	 	10	 	 	 	42	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Life underwriting income (1)	  	 	41	 	 	 	37	 	 	 	36	 	 	 	29	 	 	 	30	 	 	 	132	 	
							
Net realized gains (losses)	  	 	(4	)	 	 	(13	)	 	 	(14	)	 	 	(1	)	 	 	(8	)	 	 	(36	)	
Income tax expense (benefit)	  	 	(2	)	 	 	(5	)	 	 	—  	 	 	 	—  	 	 	 	(1	)	 	 	(6	)	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income	  	 	39	 	 	 	29	 	 	 	22	 	 	 	28	 	 	 	23	 	 	 	102	 	
							
Net realized gains (losses)	  	 	(4	)	 	 	(13	)	 	 	(14	)	 	 	(1	)	 	 	(8	)	 	 	(36	)	
Tax expense (benefit) on net realized gains (losses)	  	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income excluding net realized gains (losses) (2)	  	$	43	 	 	$	42	 	 	$	36	 	 	$	29	 	 	$	31	 	 	$	138	 	

(1)	We assess the performance of our Life Insurance and Reinsurance business based on life underwriting income which includes net investment income.	
 
(2)	See page 20 Non-GAAP Financial Measures.	

Life	  	Page 10	

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

 	  	Total	 	 	Ongoing	 	 	Run-off (1)	 	
 	  	Unpaid Losses	 	 	Unpaid Losses	 	 	Unpaid Losses	 	
 	  	Gross	 	 	Ceded	 	 	Net	 	 	Gross	 	 	Ceded	 	 	Net	 	 	Gross	 	 	Ceded	 	 	Net	 	
Balance at December 31, 2005	  	$	35,055	 	 	$	14,597	 	 	$	20,458	 	 	$	27,174	 	 	$	9,269	 	 	$	17,905	 	 	$	7,881	 	 	$	5,328	 	 	$	2,553	 	
										
Losses and loss expenses incurred	  	 	2,130	 	 	 	450	 	 	 	1,680	 	 	 	2,143	 	 	 	476	 	 	 	1,667	 	 	 	(13	)	 	 	(26	)	 	 	13	 	
Losses and loss expenses paid	  	 	(1,686	)	 	 	(503	)	 	 	(1,183	)	 	 	(1,486	)	 	 	(353	)	 	 	(1,133	)	 	 	(200	)	 	 	(150	)	 	 	(50	)	
Other (incl. foreign exch. revaluation)	  	 	9	 	 	 	10	 	 	 	(1	)	 	 	16	 	 	 	10	 	 	 	6	 	 	 	(7	)	 	 	—  	 	 	 	(7	)	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Balance at March 31, 2006	  	 	35,508	 	 	 	14,554	 	 	 	20,954	 	 	 	27,847	 	 	 	9,402	 	 	 	18,445	 	 	 	7,661	 	 	 	5,152	 	 	 	2,509	 	
										
Losses and loss expenses incurred	  	 	2,378	 	 	 	630	 	 	 	1,748	 	 	 	2,349	 	 	 	618	 	 	 	1,731	 	 	 	29	 	 	 	12	 	 	 	17	 	
Losses and loss expenses paid	  	 	(2,536	)	 	 	(1,082	)	 	 	(1,454	)	 	 	(2,344	)	 	 	(938	)	 	 	(1,406	)	 	 	(192	)	 	 	(144	)	 	 	(48	)	
Other (incl. foreign exch. revaluation)	  	 	214	 	 	 	69	 	 	 	145	 	 	 	212	 	 	 	69	 	 	 	143	 	 	 	2	 	 	 	—  	 	 	 	2	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Balance at June 30, 2006	  	 	35,564	 	 	 	14,171	 	 	 	21,393	 	 	 	28,064	 	 	 	9,151	 	 	 	18,913	 	 	 	7,500	 	 	 	5,020	 	 	 	2,480	 	
										
Losses and loss expenses incurred	  	 	2,582	 	 	 	764	 	 	 	1,818	 	 	 	2,588	 	 	 	797	 	 	 	1,791	 	 	 	(6	)	 	 	(33	)	 	 	27	 	
Losses and loss expenses paid	  	 	(2,395	)	 	 	(975	)	 	 	(1,420	)	 	 	(2,223	)	 	 	(893	)	 	 	(1,330	)	 	 	(172	)	 	 	(82	)	 	 	(90	)	
Other (Sale of certain run-off subsidiaries) (2)	  	 	(789	)	 	 	(317	)	 	 	(472	)	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	(789	)	 	 	(317	)	 	 	(472	)	
Other (incl. foreign exch. revaluation)	  	 	187	 	 	 	66	 	 	 	121	 	 	 	199	 	 	 	69	 	 	 	130	 	 	 	(12	)	 	 	(3	)	 	 	(9	)	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Balance at September 30, 2006	  	 	35,149	 	 	 	13,709	 	 	 	21,440	 	 	 	28,628	 	 	 	9,124	 	 	 	19,504	 	 	 	6,521	 	 	 	4,585	 	 	 	1,936	 	
										
Losses and loss expenses incurred	  	 	2,780	 	 	 	956	 	 	 	1,824	 	 	 	2,477	 	 	 	710	 	 	 	1,767	 	 	 	303	 	 	 	246	 	 	 	57	 	
Losses and loss expenses paid	  	 	(2,613	)	 	 	(1,211	)	 	 	(1,402	)	 	 	(2,405	)	 	 	(1,078	)	 	 	(1,327	)	 	 	(208	)	 	 	(133	)	 	 	(75	)	
Other (incl. foreign exch. revaluation)	  	 	201	 	 	 	55	 	 	 	146	 	 	 	289	 	 	 	221	 	 	 	68	 	 	 	(88	)	 	 	(166	)	 	 	78	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Balance at December 31, 2006	  	 	35,517	 	 	 	13,509	 	 	 	22,008	 	 	 	28,989	 	 	 	8,977	 	 	 	20,012	 	 	 	6,528	 	 	 	4,532	 	 	 	1,996	 	
										
Losses and loss expenses incurred	  	 	2,703	 	 	 	843	 	 	 	1,860	 	 	 	2,690	 	 	 	832	 	 	 	1,858	 	 	 	13	 	 	 	11	 	 	 	2	 	
Losses and loss expenses paid	  	 	(2,363	)	 	 	(943	)	 	 	(1,420	)	 	 	(2,206	)	 	 	(797	)	 	 	(1,409	)	 	 	(157	)	 	 	(146	)	 	 	(11	)	
Other (incl. foreign exch. revaluation)	  	 	(44	)	 	 	4	 	 	 	(48	)	 	 	(44	)	 	 	4	 	 	 	(48	)	 	 	—  	 	 	 	—  	 	 	 	—  	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Balance at March 31, 2007	  	$	35,813	 	 	$	13,413	 	 	$	22,400	 	 	$	29,429	 	 	$	9,016	 	 	$	20,413	 	 	$	6,384	 	 	$	4,397	 	 	$	1,987	 	

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

Loss Reserve Rollforward	  	Page 11	

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

 	  	March 31
2007	 	 	December 31
2006	 	
Reinsurance recoverable on paid losses and loss expenses	  				 				
Active operations	  	$	922	 	 	$	1,013	 	
Brandywine	  	 	242	 	 	 	251	 	
Westchester Run-off	  	 	42	 	 	 	36	 	
Other Run-off	  	 	17	 	 	 	16	 	
	  	 	 	 	 	 	 	 	
Total	  	$	1,223	 	 	$	1,316	 	
	  	 	 	 	 	 	 	 	
Reinsurance recoverable on unpaid losses and loss expenses	  				 				
Active operations	  	$	9,528	 	 	$	9,502	 	
Brandywine	  	 	3,425	 	 	 	3,535	 	
Westchester Run-off	  	 	667	 	 	 	676	 	
Other Run-off	  	 	202	 	 	 	200	 	
	  	 	 	 	 	 	 	 	
Total	  	$	13,822	 	 	$	13,913	 	
	  	 	 	 	 	 	 	 	
Gross reinsurance recoverable	  				 				
Active operations	  	$	10,450	 	 	$	10,515	 	
Brandywine	  	 	3,667	 	 	 	3,786	 	
Westchester Run-off	  	 	709	 	 	 	712	 	
Other Run-off	  	 	219	 	 	 	216	 	
	  	 	 	 	 	 	 	 	
Total	  	$	15,045	 	 	$	15,229	 	
	  	 	 	 	 	 	 	 	
Provision for uncollectible reinsurance	  				 				
Active operations	  	$	(478	)	 	$	(450	)	
Brandywine	  	 	(169	)	 	 	(172	)	
Westchester Run-off	  	 	(7	)	 	 	(7	)	
Other Run-off	  	 	(17	)	 	 	(20	)	
	  	 	 	 	 	 	 	 	
Total	  	$	(671	)	 	$	(649	)	
	  	 	 	 	 	 	 	 	
Net reinsurance recoverable	  				 				
Active operations	  	$	9,972	 	 	$	10,065	 	
Brandywine	  	 	3,498	 	 	 	3,614	 	
Westchester Run-off	  	 	702	 	 	 	705	 	
Other Run-off	  	 	202	 	 	 	196	 	
	  	 	 	 	 	 	 	 	
Total	  	$	14,374	 	 	$	14,580	 	

			
Reinsurance Recoverable	  	Page 12	

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

 	  	December 31, 2006	 	
   	  	Recoverable	  	Provision	  	% of Gross	 	
Categories	  			  			  			
Top 10 reinsurers	  	$	5,266	  	$	64	  	1.2	%	
Other reinsurers balances >$20 million	  	 	2,277	  	 	53	  	2.3	%	
Other reinsurers balances <$20 million	  	 	561	  	 	53	  	9.4	%	
Mandatory pools and government agencies	  	 	590	  	 	3	  	0.5	%	
Structured settlements	  	 	220	  	 	1	  	0.5	%	
Captives	  	 	1,238	  	 	1	  	0.1	%	
Other (1)	  	 	363	  	 	275	  	75.8	%	
	  	 	 	  	 	 	  	 	 	
Total	  	$	10,515	  	$	450	  	4.3	%	

At December 31, 2006, $7.7 billion of the active operations’ recoverables were from rated reinsurers, of which 95.0% were rated the equivalent of A- or better by internationally recognized rating agencies. The Company held collateral of $3.2 billion, of which $1.9 billion was matched and usable against existing recoverables.

Top 10 Reinsurers (net of collateral) (2)	 	Other Reinsurers Balances Greater Than $20 million (net of collateral) (2)	
American International Group (AIG)
Berkshire Hathaway Insurance Group
Chubb Insurance Group
Everest Re Group
Federal Crop Insurance Corp HDI
Haftpflichtverband Der Deutschen
    Industrie Vag (Hannover)
Lloyd’s Of London
Munich Re Group
Swiss Re Group
XL Capital Group	 	AGRI General Ins Co
AIOI Insurance Group
Allianz
Allied World Assurance Group
Arch Capital
Aspen Insurance Holdings Ltd
AXA
CIGNA
Converium Group
Dow Chemical Co
Electric Insurance Company
Endurance Specialty Holdings Ltd
Equitas
Fairfax Financial
Gerling Global Group
ING Groep NV	 	IRB - Brasil Resseguros S.A. Group
Liberty Mutual Insurance Companies
Montpelier Reinsurance Ltd
Partner Re
Platinum Underwriters
Renaissance Re Holdings Ltd
Royal & Sun Alliance Insurance Group
SCOR Group
Sompo Japan Group
Tawa UK Ltd
Toa Reinsurance Company
The Travelers Companies, Inc.
White Mountains Insurance Group
WR Berkley Corp
Zurich Financial Services Group	
 
(1)	Other includes amounts recoverable that are in dispute, or are from companies who are in supervision, rehabilitation or liquidation. Our estimate of provision for uncollectible reinsurance associated with Other considers the credit quality of the reinsurer, and whether we have received collateral or other credit protections such as parental guarantees.	
 
(2)	Excludes recoverable amounts from companies who are in supervision, rehabilitation or liquidation, or are captive reinsurers, mandatory pools or voluntary pools.	

Reinsurance Rec-Active	  	Page 13	

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

 	  	December 31, 2006	 	
   	  	Recoverable	  	Provision	  	% of Gross	 	
Categories	  			  			  			
Top 10 reinsurers	  	$	8,075	  	$	88	  	1.1	%	
Other reinsurers balances >$20 million	  	 	3,468	  	 	146	  	4.2	%	
Other reinsurers balances <$20 million	  	 	681	  	 	71	  	10.4	%	
Mandatory pools and government agencies	  	 	602	  	 	3	  	0.5	%	
Structured settlements	  	 	522	  	 	2	  	0.4	%	
Captives	  	 	1,315	  	 	1	  	0.1	%	
Other (1)	  	 	566	  	 	338	  	59.7	%	
	  	 	 	  	 	 	  	 	 	
Total	  	$	15,229	  	$	649	  	4.3	%	

At December 31, 2006, $11.6 billion of ACE Limited recoverables were from rated reinsurers, of which 94.5% were rated the equivalent of A- or better by internationally recognized rating agencies.

Top 10 Reinsurers (net of collateral)  (2)	  	Other Reinsurers Balances Greater Than $20 million (net of collateral) (2)	
American International Group (AIG)
Berkshire Hathaway Insurance
    Group
Chubb Insurance Group
Equitas
Everest Re Group
HDI Haftpflichtverband Der
    Deutschen Industrie Vag
    (Hannover)
Lloyd’s Of London
Munich Re Group
Swiss Re Group
XL Capital Group	  	AGRI General Ins Co
AIOI Insurance Group
Allianz
Allied World Assurance Group
Allmerica Financial Corp
Allstate Group
Arch Capital
Aspen Insurance Holdings Ltd
AVIVA
AXA
CIGNA
CNA Insurance Companies
Converium Group
Dominion Insurance Co Ltd
Dow Chemical Co
Dukes Place Holdings	  	Electric Insurance Company
Endurance Specialty Holdings Ltd
Enstar Group Ltd
Fairfax Financial
Federal Crop Insurance Corp
FM Global Group
Gerling Global Group
Hartford Insurance Group
ING Groep NV
IRB - Brasil Resseguros S.A.
    Group
Liberty Mutual Insurance
    Companies
Millea Holdings
Montpelier Reinsurance Ltd
Partner Re	  	Platinum Underwriters
PMA Capital Corp
Renaissance Re Holdings Ltd
Royal & Sun Alliance
    Insurance Group
SCOR Group
Sompo Japan Group
Tawa UK Ltd
Toa Reinsurance Company
The Travelers Companies, Inc.
Trenwick Group
White Mountains Insurance
    Group
WR Berkley Corp
Zurich Financial Services
    Group	
 
(1)	Other includes amounts recoverable that are in dispute, or are from companies who are in supervision, rehabilitation or liquidation. Our estimate of provision for uncollectible reinsurance associated with Other considers the credit quality of the reinsurer, and whether we have received collateral or other credit protections such as parental guarantees.	
 
(2)	Excludes recoverable amounts from companies who are in supervision, rehabilitation or liquidation, or are captive reinsurers, mandatory pools or voluntary pools.	

Reinsurance Rec-Consolidated	  	Page 14	

			
	  	ACE Limited	
	  	Reinsurance Recoverable Analysis - 4	
	  	(in millions of U.S. dollars)	
	  	(Unaudited)	
 
Detail on Reinsurance Recoverable on Paid Losses and Loss Expenses

 	  	General
Collections  (1)	 	 	Other  (2)	 	 	Total	 	
Gross balance at December 31, 2006	  	$	932	 	 	$	384	 	 	$	1,316	 	
Provision at 12/31/06	  	 	53	 	 	 	202	 	 	 	255	 	
% of gross	  	 	5.7	%	 	 	52.6	%	 	 	19.4	%	
	  	 	 	 	 	 	 	 	 	 	 	 	
Net balance at December 31, 2006	  	$	879	 	 	$	182	 	 	$	1,061	 	
	  	 	 	 	 	 	 	 	 	 	 	 	
Gross balance at March 31, 2007	  	$	865	 	 	$	358	 	 	$	1,223	 	
Provision at 3/31/07	  	 	56	 	 	 	216	 	 	 	272	 	
% of gross	  	 	6.5	%	 	 	60.3	%	 	 	22.2	%	
	  	 	 	 	 	 	 	 	 	 	 	 	
Net balance at March 31, 2007 (3) 	  	$	809	 	 	$	142	 	 	$	951	 	

(1)	General collections balances represent amounts in process of collection in the normal course of business, for which we have no indication of dispute or credit issues.	
 
(2)	Other includes amounts recoverable that are in dispute, or are from companies who are in supervision, rehabilitation or liquidation for Brandywine Group and active operations. Our estimation of the reserve for other, considers the merits of the underlying matter, the credit quality of the reinsurer, and whether we have received collateral or other credit protections such as parental guarantees.	
 
(3)	The current quarter split between general collections and other is estimated based on prior quarter balances. Balances are adjusted to actual in the next quarter.	

Reinsurance Recoverable 4	  	Page 15	

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

 	  	March 31
2007	 	 	December 31
2006	 	
Market Value	  				 				
Fixed maturities available for sale	  	$	29,934	 	 	$	28,540	 	
Fixed maturities held to maturity	  	 	3,039	 	 	 	3,015	 	
Short-term investments	  	 	2,658	 	 	 	2,456	 	
	  	 	 	 	 	 	 	 	
Total	  	$	35,631	 	 	$	34,011	 	
	  	 	 	 	 	 	 	 	
Asset Allocation by Market Value	  				 				
Treasury	  	$	1,689	 	 	$	1,322	 	
Agency	  	 	2,223	 	 	 	2,207	 	
Corporate	  	 	7,473	 	 	 	7,394	 	
Mortgage-backed securities	  	 	11,925	 	 	 	11,346	 	
Asset-backed securities	  	 	1,772	 	 	 	2,020	 	
Municipal	  	 	1,157	 	 	 	809	 	
Non-U.S.	  	 	6,734	 	 	 	6,457	 	
Short-term investments	  	 	2,658	 	 	 	2,456	 	
	  	 	 	 	 	 	 	 	
Total	  	$	35,631	 	 	$	34,011	 	
	  	 	 	 	 	 	 	 	
Credit Quality by Market Value	  				 				
AAA	  	$	23,783	 	 	$	22,471	 	
AA	  	 	3,095	 	 	 	2,725	 	
A	  	 	3,582	 	 	 	3,909	 	
BBB	  	 	2,610	 	 	 	2,498	 	
BB	  	 	992	 	 	 	943	 	
B	  	 	1,475	 	 	 	1,365	 	
Other	  	 	94	 	 	 	100	 	
	  	 	 	 	 	 	 	 	
Total	  	$	35,631	 	 	$	34,011	 	
	  	 	 	 	 	 	 	 	
Cost/Amortized Cost	  				 				
Fixed maturities available for sale	  	$	29,723	 	 	$	28,389	 	
Fixed maturities held to maturity	  	 	3,060	 	 	 	3,047	 	
Short-term investments	  	 	2,658	 	 	 	2,456	 	
	  	 	 	 	 	 	 	 	
Subtotal	  	 	35,441	 	 	 	33,892	 	
Equity securities	  	 	1,432	 	 	 	1,372	 	
Other investments	  	 	687	 	 	 	661	 	
	  	 	 	 	 	 	 	 	
Total	  	$	37,560	 	 	$	35,925	 	
	  	 	 	 	 	 	 	 	
Avg. duration of fixed maturities, adjusted for int. rate swaps	  	 	3.3 years	 	 	 	3.3 years	 	
Avg. market yield of fixed maturities	  	 	5.3	%	 	 	5.4	%	
Avg. credit quality	  	 	AA	 	 	 	AA	 	

Investments	  	Page 16	

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

 	  	Three months ended
March 31, 2007	 	
 	  	Net Realized
Gains
(Losses) (1)	 	 	Net Unrealized
Gains
(Losses)	 	 	Net
Impact	 	
Fixed maturities	  	$	(21	)	 	$	45	 	 	$	24	 	
Equity securities	  	 	34	 	 	 	(1	)	 	 	33	 	
Equity and fixed income derivatives	  	 	(7	)	 	 	—  	 	 	 	(7	)	
Foreign exchange gains (losses)	  	 	—  	 	 	 	—  	 	 	 	—  	 	
Other	  	 	10	 	 	 	20	 	 	 	30	 	
	  	 	 	 	 	 	 	 	 	 	 	 	
Sub-total	  	 	16	 	 	 	64	 	 	 	80	 	
Other FAS 133 adjustments	  	 	—  	 	 	 	—  	 	 	 	—  	 	
	  	 	 	 	 	 	 	 	 	 	 	 	
Total gains (losses)	  	 	16	 	 	 	64	 	 	 	80	 	
Income tax expense (benefit)	  	 	(22	)	 	 	13	 	 	 	(9	)	
	  	 	 	 	 	 	 	 	 	 	 	 	
Net gains (losses)	  	$	38	 	 	$	51	 	 	$	89	 	

(1)    The quarter includes impairments of $37M for fixed maturities, $1M for equities and $nil for other investments.	      	
		
  	  	Three months ended
March 31, 2006	 	
 	  	Net Realized
Gains
(Losses) (2)	 	 	Net Unrealized
Gains
(Losses)	 	 	Net
Impact	 	
Fixed maturities	  	$	(44	)	 	$	(193	)	 	$	(237	)	
Equity securities	  	 	43	 	 	 	48	 	 	 	91	 	
Equity and fixed income derivatives	  	 	11	 	 	 	—  	 	 	 	11	 	
Foreign exchange gains (losses)	  	 	(4	)	 	 	—  	 	 	 	(4	)	
Other	  	 	(1	)	 	 	12	 	 	 	11	 	
	  	 	 	 	 	 	 	 	 	 	 	 	
Total inv. portfolio gains (losses)	  	 	5	 	 	 	(133	)	 	 	(128	)	
Other FAS 133 adjustments	  	 	2	 	 	 	—  	 	 	 	2	 	
	  	 	 	 	 	 	 	 	 	 	 	 	
Total gains (losses)	  	 	7	 	 	 	(133	)	 	 	(126	)	
Income tax expense (benefit)	  	 	(1	)	 	 	(35	)	 	 	(36	)	
	  	 	 	 	 	 	 	 	 	 	 	 	
Net gains (losses)	  	$	8	 	 	$	(98	)	 	$	(90	)	

(2)    The quarter includes impairments of $24M for fixed maturities, $2M for equities and $5M for other investments.	      	

Investment Gains (Losses)	  	Page 17	

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

 	  	March 31
2007	 	 	December 31
2006	 	 	December 31
2005	 	
Total short-term debt	  	$	581	 	 	$	578	 	 	$	300	 	
Total long-term debt	  	 	2,061	 	 	 	1,560	 	 	 	1,811	 	
	  	 	 	 	 	 	 	 	 	 	 	 	
Total debt	  	 	2,642	 	 	 	2,138	 	 	 	2,111	 	

Total trust preferred securities	  	 	309	 	 	 	309	 	 	 	309	 	

Perpetual preferred shares	  	 	557	 	 	 	557	 	 	 	557	 	
Ordinary shareholders’ equity	  	 	14,402	 	 	 	13,721	 	 	 	11,255	 	
	  	 	 	 	 	 	 	 	 	 	 	 	
Total shareholders’ equity	  	$	14,959	 	 	$	14,278	 	 	$	11,812	 	
	  	 	 	 	 	 	 	 	 	 	 	 	
Total capitalization	  	$	17,910	 	 	$	16,725	 	 	$	14,232	 	
Tangible shareholders’ equity (1)	  	$	12,228	 	 	$	11,547	 	 	$	9,109	 	
				
Leverage ratios	  				 				 				
Debt/ total capitalization	  	 	14.8	%	 	 	12.8	%	 	 	14.8	%	
Debt plus trust preferred secutities/ total capitalization	  	 	16.5	%	 	 	14.6	%	 	 	17.0	%	
Debt/ tangible equity	  	 	21.6	%	 	 	18.5	%	 	 	23.2	%	
Debt plus trust preferred securities/ tangible equity	  	 	24.1	%	 	 	21.2	%	 	 	26.6	%	
Debt plus total preferred stock/ total capitalization	  	 	19.6	%	 	 	18.0	%	 	 	20.9	%	
 
(1)	Tangible equity is equal to shareholders’ equity less goodwill.	

Capital Structure	  	Page 18	

			
	  	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 March 31	 	
 	  	2007	 	 	2006	 	
Numerator	  				 				
Income excluding net realized gains (losses) and cumulative effect (1)	  	$	663	 	 	$	477	 	
Perpetual preferred dividend	  	 	(11	)	 	 	(11	)	
	  	 	 	 	 	 	 	 	
Income to ordinary shares, excl. net realized gains (losses) and cumulative effect	  	 	652	 	 	 	466	 	
Net realized gains (losses), net of income tax	  	 	38	 	 	 	8	 	
	  	 	 	 	 	 	 	 	
Net income available to the holders of ordinary shares excluding cumulative effect	  	 	690	 	 	 	474	 	
Cumulative effect of a change in accounting principle, net of tax	  	 	—  	 	 	 	4	 	
	  	 	 	 	 	 	 	 	
Net income available to the holders of ordinary shares	  	$	690	 	 	$	478	 	
	  	 	 	 	 	 	 	 	
Rollforward of Ordinary Shares	  				 				
Ordinary Shares - beginning of period	  	 	326,455,468	 	 	 	323,322,586	 	
Issued under employee stock purchase plan	  	 	104,162	 	 	 	74,598	 	
Shares (cancelled) granted	  	 	1,394,898	 	 	 	1,108,012	 	
Issued for option exercises	  	 	354,697	 	 	 	637,864	 	
	  	 	 	 	 	 	 	 	
Ordinary Shares - end of period	  	 	328,309,225	 	 	 	325,143,060	 	
	  	 	 	 	 	 	 	 	
Denominator	  				 				
Weighted average shares outstanding	  	 	324,079,146	 	 	 	321,090,179	 	
Effect of other dilutive securities	  	 	4,818,859	 	 	 	4,636,773	 	
	  	 	 	 	 	 	 	 	
Adj. wtd. avg. shares outstanding and assumed conversions	  	 	328,898,005	 	 	 	325,726,952	 	
	  	 	 	 	 	 	 	 	
Basic earnings per share	  				 				
Income excluding net realized gains (losses) and cumulative effect (1)	  	$	2.01	 	 	$	1.46	 	
Net realized gains (losses), net of income tax	  	 	0.12	 	 	 	0.02	 	
Cumulative effect of a change in accounting principle, net of tax	  	 	—  	 	 	 	0.01	 	
	  	 	 	 	 	 	 	 	
Net income	  	$	2.13	 	 	$	1.49	 	
	  	 	 	 	 	 	 	 	
Diluted earnings per share	  				 				
Income excluding net realized gains (losses) and cumulative effect (1)	  	$	1.98	 	 	$	1.43	 	
Net realized gains (losses), net of income tax	  	 	0.12	 	 	 	0.02	 	
Cumulative effect of a change in accounting principle, net of tax	  	 	—  	 	 	 	0.01	 	
	  	 	 	 	 	 	 	 	
Net income	  	$	2.10	 	 	$	1.46	 	

(1)	See page 20 Non-GAAP Financial Measures.	

Earnings per share	  	Page 19	

			
	  	ACE Limited	
	  	Non-GAAP Financial Measures	
	  	(in millions of U.S. dollars)	
	  	(Unaudited)	
 
Regulation G - Non-GAAP Financial Measures
 
In presenting our results, we have included and discussed certain non-GAAP measures. These non-GAAP measures, which may be defined differently by other companies, are important for an understanding of our overall results of operations. However, they should not be viewed as a substitute for measures determined in accordance with GAAP. A reconciliation of book value per share is provided on page 21.
 
In presenting our segment operating results, we have shown our performance with reference to underwriting results. Underwriting results are calculated by subtracting losses and loss expenses, life and annuity benefits, policy acquisition costs, and administrative expenses from net premiums earned. We use underwriting results and operating ratios to monitor the results of our operations without the impact of certain factors, including investment income, other income and expenses, interest and income tax expense, and net realized gains (losses).
 
The following non-GAAP measure is a common performance measurement and is defined as income excluding net realized gains (losses), the tax expense (benefit) on net realized gains (losses), and cumulative effect of a change in accounting principle, net of tax. We believe this presentation enhances the understanding of our results of operations by highlighting the underlying profitability of our insurance business. We exclude net realized gains (losses) because the amount of these gains (losses) is heavily influenced by, and fluctuates in part according to, the availability of market opportunities. We exclude the benefit of the cumulative effect of a change in accounting principle, net of tax, because this benefit resulted in a one time adjustment to income. We believe these amounts are largely independent of our business and including them would distort the analysis of trends. Income excluding net realized gains (losses) and cumulative effect should not be viewed as a substitute for net income determined in accordance with generally accepted accounting principles (GAAP).

 	  	1Q-07	 	 	4Q-06	 	 	3Q-06	 	 	2Q-06	 	 	1Q-06	 	 	Full Year
2006	 	
Net income, as reported	  	$	701	 	 	$	665	 	 	$	578	 	 	$	573	 	 	$	489	 	 	$	2,305	 	
Net realized gains (losses)	  	 	16	 	 	 	15	 	 	 	(113	)	 	 	(7	)	 	 	7	 	 	 	(98	)	
Income tax expense (benefit) on net realized gains (losses)	  	 	(22	)	 	 	(7	)	 	 	(39	)	 	 	(1	)	 	 	(1	)	 	 	(48	)	
Cumulative effect of a change in accounting principle, net of tax	  	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	4	 	 	 	4	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income excluding net realized gains (losses) and cumulative effect	  	$	663	 	 	$	643	 	 	$	652	 	 	$	579	 	 	$	477	 	 	$	2,351	 	

			
Reconciliation Non-GAAP	  	Page 20	

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

 	  	March 31
2007	 	 	December 31
2006	 	
Shareholders’ equity	  	$	14,959	 	 	$	14,278	 	
Proceeds from issuance of perpetual preferred shares	  	 	(557	)	 	 	(557	)	
	  	 	 	 	 	 	 	 	
Numerator for book value per share calculation	  	 	14,402	 	 	 	13,721	 	
Less: goodwill	  	 	2,731	 	 	 	2,731	 	
	  	 	 	 	 	 	 	 	
Numerator for tangible book value per share	  	$	11,671	 	 	$	10,990	 	
	  	 	 	 	 	 	 	 	
Denominator	  	 	328,309,225	 	 	 	326,455,468	 	
	  	 	 	 	 	 	 	 	
Book value per ordinary share	  	$	43.87	 	 	$	42.03	 	
Tangible book value per ordinary share	  	$	35.55	 	 	$	33.66	 	

Reconciliation Book Value	  	Page 21	

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

 	  	1Q-07	 	 	4Q-06	 	 	3Q-06	 	 	2Q-06	 	 	1Q-06	 	 	Full Year
2006	 	
Net income	  	$	701	 	 	$	665	 	 	$	578	 	 	$	573	 	 	$	489	 	 	$	2,305	 	
Net unrealized appreciation (depreciation) on investments	  				 				 				 				 				 				
Unrealized appreciation (depreciation) on investments	  	 	61	 	 	 	132	 	 	 	541	 	 	 	(266	)	 	 	(118	)	 	 	289	 	
Reclassification adjustment for net realized gains (losses) included in net income	  	 	3	 	 	 	(6	)	 	 	82	 	 	 	3	 	 	 	(15	)	 	 	64	 	
Change in cumulative translation adjustments	  	 	16	 	 	 	46	 	 	 	15	 	 	 	50	 	 	 	24	 	 	 	135	 	
Change in minimum pension liability	  	 	—  	 	 	 	29	 	 	 	(5	)	 	 	(3	)	 	 	(1	)	 	 	20	 	
Income tax (expense) benefit related to other comprehensive income items	  	 	(18	)	 	 	(42	)	 	 	(117	)	 	 	18	 	 	 	28	 	 	 	(113	)	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Other comprehensive income (loss)	  	 	62	 	 	 	159	 	 	 	516	 	 	 	(198	)	 	 	(82	)	 	 	395	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Comprehensive income	  	$	763	 	 	$	824	 	 	$	1,094	 	 	$	375	 	 	$	407	 	 	$	2,700	 	

			
Comprehensive Income	  	Page 22	

			
	  	ACE Limited	
	  	Glossary	
 
Annualized return on ordinary shareholders’ equity (ROE): Income excluding net realized gains (losses) and cumulative effect less perpetual preferred securities divided by average ordinary shareholders’ equity for the period. To annualize a quarterly rate multiply by four.
 
Book value per ordinary share: Ordinary shareholders’ equity divided by the shares outstanding.
 
Combined ratio: The sum of the loss and loss expense ratio, acquisition cost ratio and the administrative expense ratio excluding life business. Calculated on a GAAP basis.
 
Cumulative effect: The benefit resulting from the accrual of a forfeiture rate on the restricted stock under Financial Accounting Standard 123R “Share-Based Payment”.
 
Effective tax rate: Income tax expense divided by the sum of income tax expense and income excluding net realized gains (losses) and cumulative effect.
 
FAS 115: Unrealized gains (losses) on investments and the deferred tax component included in shareholders’ equity.
 
Life underwriting income: Net premium earned and net investment income less future policy benefits, acquisition costs and administrative expenses.
 
NM: Not meaningful.
 
Ordinary shareholders’ equity: Shareholders’ equity less perpetual preferred shares.
 
P&C: Property and casualty.
 
Return on ordinary shareholders’ equity (ROE): Income excluding net realized gains (losses) and cumulative effect less perpetual preferred securities divided by average ordinary shareholders’ equity.
 
Tangible book value per ordinary share: Ordinary shareholders’ equity less goodwill divided by the shares outstanding.
 
Tangible equity: Shareholders’ equity less goodwill.
 
Total capitalization: Short-term debt, long-term debt, trust preferreds, perpetual preferred shares and shareholders’ equity.

Glossary	  	Page 23