UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 8-K

Current Report
Pursuant To Section 13 or 15 (d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) – January 27, 2015

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

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

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

 

Item 2.02. Results of Operations and Financial Condition
On January 27, 2015, ACE Limited issued a Press Release reporting its fourth quarter 2014 results and the availability of its fourth quarter 2014 Financial Supplement. The Press Release and the Financial Supplement are attached hereto as Exhibit 99.1 and Exhibit 99.2, respectively, and are hereby incorporated herein by reference.
Item 9.01. Financial Statements, Pro Forma Financial Information and Exhibits
 
(d)	Exhibits	

Exhibit
Number	  	Description	
		
99.1	  	Press Release, Dated January 27, 2015, Reporting Fourth Quarter 2014 Results	
		
99.2	  	Fourth Quarter 2014 Financial Supplement	

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

ACE LIMITED	
		
By:	 	/s/ Philip V. Bancroft	
	 	Philip V. Bancroft	
	 	Chief Financial Officer	
DATE: January 27, 2015

EXHIBIT INDEX

Number	  	Description	  	Method of Filing	 	
			
99.1	  	Press Release, Dated January 27, 2015, Reporting Fourth Quarter 2014 Results	  	 	Furnished herewith	  	
			
99.2	  	Fourth Quarter 2014 Financial Supplement	  	 	Furnished herewith	  	

Exhibit 99.1

	  	        ACE Limited
        Bärengasse 32
        CH-8001 Zurich
        Switzerland	  	acegroup.com
@ACEGroup	

					
NEWS RELEASE	 		 		
 
ACE Reports Fourth Quarter Operating Income of $827 Million
and Record Full-Year Earnings of $3.3 Billion, Up 4.7% per Share;
Operating ROE of 11.8% for the Quarter and 12% for the Year;
Full-Year P&C Combined Ratio of 87.7% versus 88% Last Year
 
•	 	Global P&C net premiums written, which exclude Agriculture, up 5.8% for the quarter and 6.9% for the year in constant dollars	
 
•	 	P&C underwriting income up 7.1% for the quarter and 7.2% for the year, driven by strong current accident year underwriting income excluding catastrophe losses, up 23.3% for the quarter and 13% for the year; current accident year combined ratio excluding catastrophe losses of 89.5% for the quarter and 89.3% for the year	
 
•	 	Record net investment income of $577 million for the quarter; for the year, net investment income of $2.3 billion, up 5.1%	
 
•	 	Full-year operating cash flow of $4.5 billion	
 
•	 	In the quarter, unfavorable foreign currency movement negatively impacted book value by $596 million and reduced Global P&C net premiums written growth by 2.8 percentage points	
 
Zurich — January 27, 2015 — ACE Limited (NYSE: ACE) today reported net income for the quarter ended December 31, 2014, of $1.66 per share, compared with $2.90 per share for the same quarter last year. (1) Operating income was $2.47 per share, compared with $2.39 per share for the same quarter last year. Book value per share declined 0.4% from September 30, 2014, to $90.02, primarily due to unfavorable foreign currency movement. Excluding foreign currency movement, book value per share increased 1.6%. Tangible book value per share decreased 1.9% to $72.61, primarily due to unfavorable foreign currency movement and the impact of goodwill and intangibles relating to the acquisition closed during the quarter. Tangible book value per share increased 2.4% excluding the impact of foreign currency movement and the acquisition closed during the quarter. Operating return on equity for the quarter was 11.8%. The property and casualty (P&C) combined ratio for the quarter was 88.5%.

ACE ® , ACE logo ® , and ACE insured ® are trademarks of ACE Limited.	  	1	

ACE LIMITED NEWS RELEASE

Fourth Quarter Summary
(in millions, except per share amounts)
(Unaudited)

 	  	 	 	  	 	 	  	 	 	  	(Per Share - Diluted)	 	
 	  	2014	 	  	2013	 	  	Change      	 	  	2014	 	  	2013	 	  	Change    	 	
	  	 	 	 	  	 	 	 	
Operating income, net of tax	  	$	  827	  	  	$	 824	  	  	 	0.4%  	  	  	$	  2.47	  	  	$	 2.39	  	  	 	3.3%  	  	
Adjusted net realized gains (losses), net of tax	  	 	(272)	  	  	 	174	  	  	 	NM  	  	  	 	(0.81)	  	  	 	0.51	  	  	 	NM  	  	
	  	 	 	 	  	 	 	 	
Net income	  	$	  555	  	  	$	 998	  	  	 	(44.4)%  	  	  	$	  1.66	  	  	$	 2.90	  	  	 	(42.8)%  	  	
	  	 	 	 	  	 	 	 	
For the year ended December 31, 2014, net income was $8.42 per share, compared with $10.92 per share for 2013. Operating income was $9.79 per share, compared with $9.35 per share for 2013, an increase of 4.7%. Book value and tangible book value per share increased 6.1% and 5.3%, respectively, from December 31, 2013. Excluding foreign currency movement, book value per share increased 8.8%. Tangible book value per share increased 11.3% excluding the impact of foreign currency movement and acquisitions closed during the year. Operating return on equity for the year was 12%. The P&C combined ratio for the year ended December 31, 2014, was 87.7%.
Full Year Summary
(in millions, except per share amounts)
(Unaudited)

 	  	 	 	  	 	 	  	 	 	  	(Per Share - Diluted)	 	
 	  	2014	 	  	2013	 	  	Change  	 	  	2014	 	  	2013	 	  	Change    	 	
	  	 	 	 	  	 	 	 	
Operating income, net of tax	  	$	 3,320	  	  	$	 3,217	  	  	 	3.2%  	  	  	$	  9.79	  	  	$	   9.35	  	  	 	4.7% 	  	
Adjusted net realized gains (losses), net of tax	  	 	(467)	  	  	 	541	  	  	 	NM  	  	  	 	(1.37)	  	  	 	1.57	  	  	 	NM 	  	
	  	 	 	 	  	 	 	 	
Net income	  	$	 2,853	  	  	$	 3,758	  	  	 	(24.1)%  	  	  	$	  8.42	  	  	$	 10.92	  	  	 	(22.9)% 	  	
	  	 	 	 	  	 	 	 	
Evan G. Greenberg, Chairman and Chief Executive Officer of ACE Limited, commented: “ACE had excellent operating results for the fourth quarter which contributed to another record year. Quarterly and annual results were driven by growth in both underwriting and investment income. Record full-year after-tax operating income of $3.3 billion was up 4.7% per share with a strong operating ROE of 12%.
“Our P&C combined ratio was 88.5% for the quarter and 87.7% for the year with fourth quarter and full-year underwriting income both up over 7%. Our excellent underwriting results were driven by a particularly strong current accident year performance, which reflects the fundamental strength of our current year business. Current accident year underwriting income excluding catastrophes was up 23% for the quarter and 13% for the year.

                 	  	ACE ® , ACE logo ® , and ACE insured ® are trademarks of ACE Limited.	  	2	

ACE LIMITED NEWS RELEASE

“Net investment income was a record $577 million in the quarter and $2.3 billion for the year, up more than 5%. We benefited from strong operating cash flow and achieved an exceptional result given the historically low interest rate environment.
“For the quarter and year, global P&C net premiums written grew about 6% and 7%, respectively, on a constant-dollar basis with the strong dollar negatively impacting growth by about 2.8 percentage points in the quarter and 1.2 percentage points for the year. Per share book value declined modestly in the quarter and grew 6.1% for the year with foreign exchange negatively impacting book value by $596 million in the quarter and $747 million for the year. Excluding foreign currency movement, book value per share grew 8.8% for the year. There has been a rapid investor flight to the dollar in search of safety, driven by the decline in oil prices, economic uncertainty in many countries and regions, and geopolitical tensions. ACE is a truly global multinational insurer, and we are dollar-based. Our diversified presence, product and customer capabilities, and distribution focus in 54 countries are a unique source of earnings strength that enables us to take advantage of so many opportunities around the globe over time.
“In the quarter, we closed our acquisition of the large corporate P&C business of Brazil’s Itaú Seguros and announced our intention to purchase the U.S. high net worth personal lines business of Fireman’s Fund. These are just two of many investments we made last year in the future of our company that will strengthen our presence and capabilities and increase our ability to produce sustainable outperformance. We are off to a good start in January and we remain confident in our strategy and are relentless in our drive to execute with excellence.”

                 	  	ACE ® , ACE logo ® , and ACE insured ® are trademarks of ACE Limited.	  	3	

ACE LIMITED NEWS RELEASE

Operating highlights for the quarter and full year ended December 31, 2014, were as follows:

(in millions of U.S. dollars except for percentages)	  	4Q
2014	 	  	4Q
2013	 	 	Change  	 	  	 Full Year 
2014	 	  	 Full Year 
2013	 	  	Change  	 	

P&C	  				  				 				  				  				  				
							
Net premiums written	  	 $	3,803	  	  	$	3,712	  	 	 	2.4% 	  	  	 $	15,787	  	  	$	15,053	  	  	 	4.9% 	  	
							
Net premiums written constant-dollar	  				  	$	3,621	  	 	 	5.0% 	  	  				  	$	14,913	  	  	 	5.9% 	  	
							
Underwriting income	  	 $	444	  	  	$	416	  	 	 	7.1% 	  	  	 $	1,898	  	  	$	1,772	  	  	 	7.2% 	  	
							
Combined ratio	  	 	88.5%	  	  	 	89.3%	  	 				  	 	87.7%	  	  	 	88.0%	  	  				
							
Current accident year underwriting income excluding catastrophe losses	  	 $	406	  	  	$	330	  	 	 	23.3% 	  	  	 $	1,659	  	  	$	1,469	  	  	 	13.0% 	  	
							
Current accident year combined ratio excluding catastrophe losses	  	 	89.5%	  	  	 	91.5%	  	 				  	 	89.3%	  	  	 	90.0%	  	  				
							
Global P&C (excludes Agriculture)	  				  				 				  				  				  				
							
Net premiums written	  	 $	3,559	  	  	$	3,456	  	 	 	3.0% 	  	  	 $	14,197	  	  	$	13,426	  	  	 	5.7% 	  	
							
Net premiums written constant-dollar	  				  	$	3,365	  	 	 	5.8% 	  	  				  	$	13,286	  	  	 	6.9% 	  	
							
Underwriting income	  	 $	385	  	  	$	438	  	 	 	(12.0)% 	  	  	 $	1,762	  	  	$	1,683	  	  	 	4.8% 	  	
							
Combined ratio	  	 	89.1%	  	  	 	87.4%	  	 				  	 	87.4%	  	  	 	87.1%	  	  				
							
Current accident year underwriting income excluding catastrophe losses	  	 $	347	  	  	$	350	  	 	 	(0.7)% 	  	  	 $	1,476	  	  	$	1,386	  	  	 	6.6% 	  	
							
Current accident year combined ratio excluding catastrophe losses	  	 	  90.2%	  	  	 	89.9%	  	 				  	 	89.4%	  	  	 	89.4%	  	  				
							
Agriculture	  				  				 				  				  				  				
							
Net premiums written	  	 $	244	  	  	$	256	  	 	 	(5.0)% 	  	  	 $	1,590	  	  	$	1,627	  	  	 	(2.3)% 	  	
							
Underwriting income (loss)	  	 $	59	  	  	$	(22)	  	 	 	NM 	  	  	 $	136	  	  	$	89	  	  	 	52.8% 	  	
							
Combined ratio	  	 	81.8%	  	  	 	  105.2%	  	 				  	 	  91.1%	  	  	 	  94.7%	  	  				
							
Current accident year underwriting income (loss) excluding catastrophe losses	  	 $	59	  	  	$	(20)	  	 	 	NM 	  	  	 $	183	  	  	$	83	  	  	 	121.1% 	  	
							
Current accident year combined ratio excluding catastrophe losses	  	 	82.4%	  	  	 	104.8%	  	 				  	 	87.8%	  	  	 	95.1%	  	  				
 
•	 	P&C net premiums earned for the quarter increased 2.1%, and Global P&C net premiums earned increased 5.4% in constant dollars. For the year, P&C net premiums earned increased 6.2%, and Global P&C net premiums earned increased 8.2% in constant dollars.	
•	 	The P&C expense ratio for the quarter was 29.9%, compared with 28.0% last year. The Global P&C expense ratio, which excludes Agriculture, was 32.2% compared with 31.7% last year. The Agriculture expense ratio for the quarter was 4.6% compared with (1.1)% last year. For the year, the P&C expense ratio was 29.4% compared with 28.4% last year. The Global P&C expense ratio for the year was 32.1% compared with 31.5% last year.	

                 	  	ACE ® , ACE logo ® , and ACE insured ® are trademarks of ACE Limited.	  	4	

ACE LIMITED NEWS RELEASE

•	 	Total P&C pre-tax and after-tax catastrophe losses including reinstatement premiums for the quarter were $69 million (1.7 percentage points of the combined ratio) and $64 million, respectively, compared with $36 million (1.0 percentage point of the combined ratio) and $31 million, respectively, last year. For the year, total P&C pre-tax and after-tax catastrophe losses including reinstatement premiums were $288 million and $249 million, respectively, compared with $227 million and $197 million, respectively, last year.	
•	 	Favorable prior period development pre-tax for the quarter, net of a $130 million pre-tax charge for asbestos and environmental and other run-off businesses, was $107 million (2.7 percentage points of the combined ratio) compared with $122 million (3.2 percentage points of the combined ratio) net of a comparable $91 million pre-tax charge last year.	
•	 	Operating cash flow was $1.3 billion for the quarter and $4.5 billion for the year.	
•	 	Net loss reserves increased $659 million for the year after adjusting for foreign exchange.	
•	 	Net investment income for the quarter was $577 million compared with $557 million last year. Net investment income for the year was $2.3 billion compared with $2.1 billion last year.	
•	 	Net realized and unrealized losses pre-tax totaled $61 million for the quarter, which included net realized losses of $161 million and net unrealized gains of $100 million. Net realized losses included a loss of $153 million from derivative accounting related to variable annuity reinsurance.	
•	 	Net income in 2014 was negatively impacted relative to 2013 for both the quarter and year as a result of the mark-to-market accounting associated with the company’s variable annuity reinsurance business. The relative difference is primarily due to interest rates, which fell during 2014 after rising during 2013.	
•	 	The operating effective tax rate was 12.7% for the quarter. The effective tax rate computed using net income was 29.5% for the quarter, due principally to a deferred tax charge related to unrealized foreign exchange losses during the quarter.	
•	 	Operating return on equity was 11.8% for the quarter and 12.0% for the year. Return on equity computed using net income was 7.5% for the quarter and 9.8% for the year.	
•	 	Share repurchases totaled $430 million, or approximately 3.8 million shares, during the quarter. Since the inception of the November 2013 share repurchase authorization, the company has repurchased approximately 14.5 million shares for $1.5 billion through December 31, 2014.	
•	 	Book value per share decreased 0.4% to $90.02 from $90.38 at September 30, 2014, and increased 6.1% from $84.83 at December 31, 2013. Unfavorable foreign currency movement negatively impacted book value by $596 million in the quarter and $747 million for the year.	
•	 	Tangible book value per share decreased 1.9% to $72.61 from $74.05 at September 30, 2014, and increased 5.3% from $68.93 at December 31, 2013. Excluding unfavorable foreign currency movement of $747 million, tangible book value per share increased 8.6% for the year. Goodwill and intangibles relating to the acquisitions of the large corporate P&C business of Itaú Seguros, S.A. and The Siam Commercial Samaggi Insurance PCL had an additional negative impact of 2.7%. Excluding the impact of both unfavorable foreign currency movement and the acquisitions, tangible book value per share increased 11.3% for the year.	
Details of financial results by business segment are available in the ACE Limited Financial Supplement. Key segment items for the quarter and full year ended December 31, 2014, include:
 
•	 	Insurance – North American P&C (excluding Agriculture): Net premiums written increased 4.2% for the quarter. The combined ratio was 90.2% for the quarter compared with 86.2%. The combined ratio was 88.4% for the year compared with 86.9%. The current accident year combined ratio excluding catastrophe losses was 89.1% for the quarter compared with 87.2%. The current accident year combined ratio excluding catastrophe losses for the year was 88.0% compared with 87.6%. Favorable prior period development in the quarter of $11 million included $130 million of adverse development for legacy asbestos and environmental liability exposures.	
•	 	Insurance – North American Agriculture: Net premiums written decreased 5.0% for the quarter. The combined ratio was 81.8% for the quarter compared with 105.2%. The combined ratio was 91.1% for	

                 	  	ACE ® , ACE logo ® , and ACE insured ® are trademarks of ACE Limited.	  	5	

ACE LIMITED NEWS RELEASE

 	the year compared with 94.7%. The current accident year combined ratio excluding catastrophe losses was 82.4% for the quarter compared with 104.8%. The current accident year combined ratio excluding catastrophe losses for the year was 87.8% compared with 95.1%.	
•	 	Insurance – Overseas General: Net premiums written increased 3.0% for the quarter, or 8.4% on a constant-dollar basis. The combined ratio was 86.3% for the quarter compared with 88.1%. The combined ratio was 85.8% for the year compared with 87.2%. The current accident year combined ratio excluding catastrophe losses was 89.4% for the quarter compared with 91.6%. The current accident year combined ratio excluding catastrophe losses for the year was 89.9% compared with 90.5%.	
•	 	Global Reinsurance: Net premiums written decreased 9.4% for the quarter. The combined ratio was 76.5% for the quarter compared with 68.4%. The combined ratio was 72.3% for the year compared with 65.9%. The current accident year combined ratio excluding catastrophe losses was 76.2% for the quarter compared with 73.6%. The current accident year combined ratio excluding catastrophe losses for the year was 75.6% compared with 70.9%.	
•	 	Life: Operating income was $76 million for the quarter compared with $86 million last year. The decrease was primarily due to a one-time tax benefit last year. International life insurance net premiums written and deposits collected increased 20.5% for the quarter on a constant-dollar basis. For the year, international life insurance net premiums written and deposits collected increased 18.4% on a constant-dollar basis.	
Please refer to the ACE Limited Financial Supplement , dated December 31, 2014, 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 hold its fourth quarter earnings conference call on Wednesday, January 28, 2015, beginning at 8:30 a.m. Eastern. The earnings conference call will be available via live webcast at www.acegroup.com or by dialing 888-297-0339 (within the United States) or 719-457-2506 (international), passcode 1087118. Please refer to the ACE Group website in the Investor Information section under Calendar of Events for details. A replay of the call will be available until Wednesday, February 11, 2015, and the archived webcast will be available for approximately one month. To listen to the replay, please dial 888-203-1112 (in the United States) or 719-457-0820 (international), passcode 1087118.
About ACE Group
ACE Group is one of the world’s largest multiline property and casualty insurers. With operations in 54 countries, ACE provides commercial and personal property and casualty insurance, personal accident and supplemental health insurance, reinsurance and life insurance to a diverse group of clients. ACE Limited, the parent company of ACE Group, is listed on the New York Stock Exchange (NYSE: ACE) and is a component of the S&P 500 index. Additional information can be found at: www.acegroup.com .
Investor Contact
Helen Wilson: (441) 299 9283; helen.wilson@acegroup.com
Media Contact
Jeffrey Zack: (212) 827 4444; jeffrey.zack@acegroup.com

                 	  	ACE ® , ACE logo ® , and ACE insured ® are trademarks of ACE Limited.	  	6	

ACE LIMITED NEWS RELEASE

(1)  	All comparisons are with the same period last year unless specifically stated.	
Regulation G - Non-GAAP Financial Measures
In presenting our results, we included and discussed certain non-GAAP measures. These non-GAAP measures, which may be defined differently by other companies, are important for an understanding of our overall results of operations and financial condition. However, they should not be viewed as a substitute for measures determined in accordance with generally accepted accounting principles (GAAP).
Adjusted net realized gains (losses), net of tax , includes net realized gains (losses) and net realized gains (losses) recorded in other income (expense) related to unconsolidated subsidiaries, and excludes realized gains and losses on crop derivatives. These derivatives were purchased to provide economic benefit, in a manner similar to reinsurance protection, in the event that a significant decline in commodity pricing will impact underwriting results. We view gains and losses on these derivatives as part of the results of our underwriting operations, and therefore realized gains and losses from these derivatives are reclassified to adjusted losses and loss expenses. The P&C combined ratio includes adjusted losses and loss expenses in the ratio numerator.
Net premiums written on a constant-dollar basis is a financial measure which excludes the impact of foreign exchange. We believe it is useful to evaluate the trends in net premiums written, exclusive of the effect of fluctuations in exchange rates between the U.S. dollar and the currencies in which our international business is transacted, as these exchange rates could fluctuate significantly between periods and distort the analysis of trends. The impact is determined by assuming constant foreign exchange rates between periods by translating prior period results using the same local currency exchange rates as the comparable current period.
Underwriting income, P&C underwriting income, and Global P&C underwriting income are calculated by subtracting losses and loss expenses, policy benefits, policy acquisition costs and administrative expenses from net premiums earned. P&C underwriting income also includes gains (losses) on crop derivatives. 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 adjusted net realized gains (losses). Current accident year underwriting income excluding catastrophe losses is underwriting income adjusted to exclude catastrophe losses and prior period development (PPD). We believe it is useful to exclude catastrophe losses, as they are not predictable as to timing and amount, and PPD as these unexpected loss developments on historical reserves are not indicative of our current underwriting performance. We believe the use of these measures enhances the understanding of our results of operations by highlighting the underlying profitability of our insurance business.
Operating income or income excluding adjusted 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 adjusted net realized gains (losses) because the amount of these gains (losses) is heavily influenced by the availability of market opportunities.
P&C combined ratio excluding catastrophe losses and PPD or current accident year P&C combined ratio excluding catastrophe losses exclude impacts of catastrophe losses and PPD. We believe this measure provides a better evaluation of our core underwriting performance and enhances the understanding of the trends in our property and casualty business that may be obscured by these items.

                 	  	ACE ® , ACE logo ® , and ACE insured ® are trademarks of ACE Limited.	  	7	

ACE LIMITED NEWS RELEASE

Global P&C performance metrics comprise consolidated operating results (including corporate) and exclude the operating results of the company’s Life and Insurance – North American Agriculture segments. We believe that these measures are useful and meaningful to investors as they are used by management to assess the company’s global P&C operations which are the most economically similar. We exclude the Insurance – North American Agriculture and Life segments because the results of these businesses do not always correlate with the results of our global P&C operations.
Life net premiums written and deposits collected, excluding life reinsurance , is adjusted to include deposits collected on universal life and investment contracts (life deposits) and exclude results from our life reinsurance business. Life deposits are not reflected as revenues in our consolidated statements of operations in accordance with GAAP. We include life deposits in presenting growth in our Life business because new life deposits are an important component of production and key to our efforts to grow our business. We exclude results associated with life reinsurance as there is no new life reinsurance business currently being written.
Operating return on equity (ROE) or ROE calculated using operating income is an annualized financial measure. The ROE numerator includes income adjusted to exclude adjusted net realized gains (losses), net of tax. The ROE denominator includes the average shareholders’ equity for the period adjusted to exclude unrealized gains (losses) on investments, net of tax. To annualize a quarterly rate, multiply by four. Annualized ROE calculated using operating income is a useful measure as it enhances the understanding of the return on shareholders’ equity by highlighting the underlying profitability relative to shareholders’ equity excluding the effect of unrealized gains and losses on our investments.
Tangible book value per common share is shareholders’ equity less goodwill and other intangible assets divided by the shares outstanding. We believe that goodwill and other intangible assets are not indicative of our underlying insurance results or trends and make book value comparisons to less acquisitive peer companies less meaningful.
Tangible book value per common share excluding 2014 acquisitions is shareholders’ equity less goodwill and other intangible assets divided by the shares outstanding. The numerator adds back the goodwill and other intangible assets related to the 2014 acquisitions of the large corporate P&C insurance business of Itaú Seguros, S.A. and The Siam Commercial Samaggi Insurance PCL in order to control for the distortive effect of acquisitions. In addition, we disclose per share measures that exclude the impact of foreign currency fluctuations during the year in order to adjust for the distortive effects of fluctuations in exchange rates.
Other income (expense) – operating excludes from consolidated Other income (expense) the portion of net realized gains and losses related to unconsolidated entities and gains and losses from fair value changes in separate account assets that do not qualify for separate account reporting under GAAP. Net realized gains (losses) related to unconsolidated entities is excluded from operating income in order to enhance the understanding of our core results of operations as they are heavily influenced by, and fluctuate in part according to market conditions.
See reconciliation of Non-GAAP Financial Measures on pages 22-24 in the Financial Supplement. These measures should not be viewed as a substitute for net income, return on equity, or effective tax rate determined in accordance with GAAP.
NM - not meaningful comparison

                 	  	ACE ® , ACE logo ® , and ACE insured ® are trademarks of ACE Limited.	  	8	

ACE LIMITED NEWS RELEASE

Cautionary Statement Regarding Forward-Looking Statements:
Forward-looking statements made in this press release, such as those related to company performance including 2015 performance and growth opportunities, reflect our current views with respect to future events and financial performance and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements involve risks and uncertainties that could cause actual results to differ materially, including without limitation, the following: competition, pricing and policy term trends, the levels of new and renewal business achieved, the frequency of unpredictable catastrophic events, actual loss experience, uncertainties in the reserving or settlement process, integration activities and performance of acquired companies, new theories of liability, judicial, legislative, regulatory and other governmental developments, litigation tactics and developments, investigation developments and actual settlement terms, the amount and timing of reinsurance recoverable, credit developments among reinsurers, rating agency action, possible terrorism or the outbreak and effects of war, economic, political, regulatory, insurance and reinsurance business conditions, potential strategic opportunities including acquisitions and our ability to achieve and integrate them, as well as management’s response to these factors, and other factors identified in our filings with the Securities and Exchange Commission. Given uncertainties, it is possible the closing of the above-referenced acquisition could also be delayed or not occur. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the dates on which they are made. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
(tables to follow)

                 	  	ACE ® , ACE logo ® , and ACE insured ® are trademarks of ACE Limited.	  	9	

ACE LIMITED NEWS RELEASE

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

 	 	

 		  December 31  
2014	 		  December 31  
2013	 	
			
Assets									
Investments		$	62,904 	  		$	60,928 	  	
Cash		 	655 	  		 	579 	  	
Insurance and reinsurance balances receivable		 	5,426 	  		 	5,026 	  	
Reinsurance recoverable on losses and loss expenses		 	11,992 	  		 	11,227 	  	
Other assets		 	17,271 	  		 	16,750 	  	
	  	 	 	 	 	 	 	 	
Total assets		$	98,248 	  		$	94,510 	  	

Liabilities									
Unpaid losses and loss expenses		$	38,315 	  		$	37,443 	  	
Unearned premiums		 	8,222 	  		 	7,539 	  	
Other liabilities		 	22,124 	  		 	20,703 	  	
	  	 	 	 	 	 	 	 	
Total liabilities		 	68,661 	  		 	65,685 	  	

Shareholders’ equity									
Total shareholders’ equity		 	29,587 	  		 	28,825 	  	
	  	 	 	 	 	 	 	 	
Total liabilities and shareholders’ equity		$	            98,248 	  		$	            94,510 	  	

Book value per common share		$	90.02 	  		$	84.83 	  	

 	 	

                 	  	ACE ® , ACE logo ® , and ACE insured ® are trademarks of ACE Limited.	  	10	

ACE LIMITED NEWS RELEASE

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	 	
 	  	   2014      	 	  	   2013      	 	  	   2014      	 	  	   2013      	 	
					
Gross premiums written	  	$	5,746    	  	  	$	5,462    	  	  	$	23,390    	  	  	$	22,828    	  	
Net premiums written	  	 	4,326    	  	  	 	4,216    	  	  	 	17,799    	  	  	 	17,025    	  	
Net premiums earned	  	 	4,370    	  	  	 	4,363    	  	  	 	17,426    	  	  	 	16,613    	  	
Losses and loss expenses	  	 	2,416    	  	  	 	2,517    	  	  	 	9,649    	  	  	 	9,348    	  	
Policy benefits	  	 	134    	  	  	 	136    	  	  	 	517    	  	  	 	515    	  	
Policy acquisition costs	  	 	764    	  	  	 	702    	  	  	 	3,075    	  	  	 	2,659    	  	
Administrative expenses	  	 	590    	  	  	 	570    	  	  	 	2,245    	  	  	 	2,211    	  	
Net investment income	  	 	577    	  	  	 	557    	  	  	 	2,252    	  	  	 	2,144    	  	
Net realized gains (losses)	  	 	(210)    	  	  	 	154    	  	  	 	(507)    	  	  	 	504    	  	
Interest expense	  	 	67    	  	  	 	70    	  	  	 	280    	  	  	 	275    	  	
Other income (expense):	  				  				  				  				
Gains (losses) from separate account assets	  	 	(3)    	  	  	 	9    	  	  	 	2    	  	  	 	16    	  	
Other	  	 	24    	  	  	 	(2)    	  	  	 	80    	  	  	 	(31)    	  	
Income tax expense	  	 	232    	  	  	 	88    	  	  	 	634    	  	  	 	480    	  	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Net income		$	555    	  		$	998    	  		$	2,853    	  		$	3,758    	  	

Diluted earnings per share:																	
					
Operating income		$	2.47    	  		$	2.39    	  		$	9.79    	  		$	9.35    	  	
Net income		$	1.66    	  		$	2.90    	  		$	8.42    	  		$	10.92    	  	
					
Weighted average diluted shares outstanding		 	334.6    	  		 	344.2    	  		 	339.0    	  		 	344.1    	  	

					
P&C combined ratio																	
Loss and loss expense ratio		 	58.6%    	  		 	61.3%    	  		 	58.3%    	  		 	59.6%    	  	
Policy acquisition cost ratio		 	16.6%    	  		 	15.6%    	  		 	16.8%    	  		 	15.7%    	  	
Administrative expense ratio		 	13.3%    	  		 	12.4%    	  		 	12.6%    	  		 	12.7%    	  	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
P&C combined ratio		 	88.5%    	  		 	89.3%    	  		 	87.7%    	  		 	88.0%    	  	

P&C underwriting income		$	444    	  		$	416    	  		$	1,898    	  		$	1,772    	  	
Other income (expense) - operating		$	(25)    	  		$	(27)    	  		$	(111)    	  		$	(123)    	  	

                 	  	ACE ® , ACE logo ® , and ACE insured ® are trademarks of ACE Limited.	  	11	

ACE LIMITED NEWS RELEASE

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

 
																	
 	  	Three Months Ended
December 31	 	  	Year Ended
December 31	 	
 	  	   2014    	 	  	   2013    	 	  	   2014    	 	  	   2013    	 	
					
Gross Premiums Written	  				  				  				  				
					
Insurance – North American P&C	  	$	2,539  	  	  	$	2,439  	  	  	$	9,036  	  	  	$	8,720  	  	
Insurance – North American Agriculture	  	 	302  	  	  	 	217  	  	  	 	2,378  	  	  	 	2,661  	  	
Insurance – Overseas General	  	 	2,212  	  	  	 	2,126  	  	  	 	8,853  	  	  	 	8,314  	  	
Global Reinsurance	  	 	140  	  	  	 	154  	  	  	 	994  	  	  	 	1,057  	  	
Life	  	 	553  	  	  	 	526  	  	  	 	2,129  	  	  	 	2,076  	  	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total		$	5,746  	  		$	5,462  	  		$	  23,390  	  		$	  22,828  	  	

Net Premiums Written																	
					
Insurance – North American P&C		$	1,669  	  		$	1,602  	  		$	6,263  	  		$	5,915  	  	
Insurance – North American Agriculture		 	244  	  		 	256  	  		 	1,590  	  		 	1,627  	  	
Insurance – Overseas General		 	1,749  	  		 	1,699  	  		 	6,999  	  		 	6,520  	  	
Global Reinsurance		 	141  	  		 	155  	  		 	935  	  		 	991  	  	
Life		 	523  	  		 	504  	  		 	2,012  	  		 	1,972  	  	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total		$	4,326  	  		$	4,216  	  		$	17,799  	  		$	17,025  	  	

Net Premiums Earned																	
					
Insurance – North American P&C		$	1,560  	  		$	1,511  	  		$	6,107  	  		$	5,721  	  	
Insurance – North American Agriculture		 	327  	  		 	426  	  		 	1,526  	  		 	1,678  	  	
Insurance – Overseas General		 	1,758  	  		 	1,700  	  		 	6,805  	  		 	6,333  	  	
Global Reinsurance		 	226  	  		 	245  	  		 	1,026  	  		 	976  	  	
Life		 	499  	  		 	481  	  		 	1,962  	  		 	1,905  	  	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total		$	4,370  	  		$	4,363  	  		$	17,426  	  		$	16,613  	  	

Operating Income (loss)																	
					
Insurance – North American P&C		$	372  	  		$	402  	  		$	1,498  	  		$	1,446  	  	
Insurance – North American Agriculture		 	45  	  		 	(20)  	  		 	96  	  		 	63  	  	
Insurance – Overseas General		 	294  	  		 	279  	  		 	1,163  	  		 	1,094  	  	
Global Reinsurance		 	127  	  		 	145  	  		 	562  	  		 	576  	  	
Life		 	76  	  		 	86  	  		 	297  	  		 	307  	  	
Corporate		 	(87)  	  		 	(68)  	  		 	(296)  	  		 	(269)  	  	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total		$	827  	  		$	824  	  		$	3,320  	  		$	3,217  	  	

 

                 	  	ACE ® , ACE logo ® , and ACE insured ® are trademarks of ACE Limited.	  	12	

Exhibit 99.2

											

						
											
								Financial Supplement

								December 31, 2014

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

			
  	  	ACE Limited
 
Financial Supplement Table of Contents	

 	  	 	  	Page	 	
I.	  	Financial Highlights	  				
	  	- Consolidated Financial Highlights	  	 	1	  	
			
II.	  	Consolidated Results	  				
	  	- Consolidated Results - Consecutive Quarters	  	 	2	  	
	  	- Summary Consolidated Balance Sheets	  	 	3	  	
	  	- Consolidated Premiums and Operating Income by Line of Business	  	 	4	  	
			
III.	  	Global P&C Results	  				
	  	- Global P&C Results - Consecutive Quarters	  	 	5	  	
			
IV.	  	Segment Results	  				
	  	- Insurance – North American - For Reference Only	  	 	6	  	
	  	- Insurance – North American P&C	  	 	7	  	
	  	- Insurance – North American Agriculture	  	 	8	  	
	  	- Insurance – Overseas General	  	 	9	  	
	  	- Global Reinsurance	  	 	10	  	
	  	- Life	  	 	11	  	
			
V.	  	Balance Sheet Details	  				
	  	- Loss Reserve Rollforward	  	 	12	  	
	  	- Reinsurance Recoverable Analysis	  	 	13	  	
	  	- Investment Portfolio	  	 	14 - 17	  	
	  	- Net Realized and Unrealized Gains (Losses)	  	 	18	  	
	  	- Capital Structure	  	 	19	  	
	  	- Computation of Basic and Diluted Earnings Per Share	  	 	20	  	
	  	- Book Value and Book Value per Common Share	  	 	21	  	
			
VI.	  	Other Disclosures	  				
	  	- Non-GAAP Financial Measures	  	 	22 - 24	  	
	  	- Glossary	  	 	25	  	

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

 	 	 	 	 	 	 	 	 	 	 	 	Constant $	 	 	 	 	 	 	 	 	 	 	 	    Constant $    	
 	 	 	 	 	 	 	 	% Change	 	 	 	% Change	 	 	 	 	 	 	 	  % Change  	 	 	 	% Change	
 	 	 	 	Three months ended December 31	 	4Q-14 vs.	 	Constant $	 	4Q-14 vs.	 	 	 	  Year ended December 31  	 	2014 vs.	 	  Constant $  	 	2014 vs.	
 	 	 	 	    2014    	 	    2013    	 	    4Q-13    	 	2013 (1)	 	4Q-13 (1)	 	 	 	    2014    	 	    2013    	 	2013	 	2013 (1)	 	2013 (1)	
													
Gross premiums written	 		 	 $            5,746  	 	 $            5,462  	 	5.2%  	 	 $            5,349	 	7.4%	 		 	$          23,390  	 	  $          22,828  	 	2.5%  	 	 $          22,622  	 	3.4%  	
Net premiums written	 		 	 $            4,326  	 	 $            4,216  	 	2.6%  	 	 $            4,114	 	5.2%	 		 	 $          17,799  	 	  $          17,025  	 	4.6%  	 	 $          16,847  	 	5.7%  	
P&C net premiums written (2)	 		 	 $            3,803  	 	 $            3,712  	 	2.4%  	 	 $            3,621	 	5.0%	 		 	 $          15,787  	 	  $          15,053  	 	4.9%  	 	 $          14,913  	 	5.9%  	
Global P&C net premiums written (2)	 		 	 $            3,559  	 	 $            3,456  	 	3.0%  	 	 $            3,365	 	5.8%	 		 	 $          14,197  	 	  $          13,426  	 	5.7%  	 	 $          13,286  	 	6.9%  	
Net premiums earned	 		 	 $            4,370  	 	 $            4,363  	 	0.2%  	 	 $            4,262	 	2.5%	 		 	 $          17,426  	 	  $          16,613  	 	4.9%  	 	 $          16,436  	 	6.0%  	
Net investment income	 		 	 $               577  	 	 $               557  	 	3.6%  	 		 		 		 	 $            2,252  	 	  $            2,144  	 	5.1%  	 		 		
Operating income	 		 	 $               827  	 	 $               824  	 	0.4%  	 		 		 		 	 $            3,320  	 	  $            3,217  	 	3.2%  	 		 		
Net income	 		 	 $               555  	 	 $               998  	 	-44.4%  	 		 		 		 	 $            2,853  	 	  $            3,758  	 	-24.1%  	 		 		
Comprehensive income	 		 	 $               138  	 	 $               776  	 	NM  	 		 		 		 	 $            2,892  	 	  $            2,023  	 	NM  	 		 		
Operating cash flow	 		 	 $            1,274  	 	 $            1,286  	 		 		 		 		 	 $            4,496  	 	  $            4,022  	 		 		 		
													
P&C combined ratio (2)	 		 		 		 		 		 		 		 		 		 		 		 		
Loss and loss expense ratio	 		 	58.6%  	 	61.3%  	 		 		 		 		 	58.3%  	 	59.6%  	 		 		 		
Underwriting and administrative expense ratio	 		 	29.9%  	 	28.0%  	 		 		 		 		 	29.4%  	 	28.4%  	 		 		 		
	 		 	 	 	 	 		 		 		 		 	 	 	 	 		 		 		
Combined ratio	 		 	88.5%  	 	89.3%  	 		 		 		 		 	87.7%  	 	88.0%  	 		 		 		
													
Operating return on equity (ROE)	 		 	11.8%  	 	12.1%  	 		 		 		 		 	12.0%  	 	12.2%  	 		 		 		
ROE	 		 	7.5%  	 	14.0%  	 		 		 		 		 	9.8%  	 	13.3%  	 		 		 		
													
Operating effective tax rate (3)	 		 	12.7%  	 	9.2%  	 		 		 		 		 	13.9%  	 	11.6%  	 		 		 		
Effective tax rate (4)	 		 	29.5%  	 	8.1%  	 		 		 		 		 	18.2%  	 	11.3%  	 		 		 		
													
Diluted earnings per share	 		 		 		 		 		 		 		 		 		 		 		 		
Operating income	 		 	 $              2.47  	 	 $              2.39  	 	3.3%  	 		 		 		 	 $              9.79  	 	  $              9.35  	 	4.7%  	 		 		
Net income	 		 	 $              1.66  	 	 $              2.90  	 	-42.8%  	 		 		 		 	 $              8.42  	 	  $            10.92  	 	-22.9%  	 		 		
													
Book value per common share	 		 		 		 		 		 		 		 	 $            90.02  	 	  $            84.83  	 	6.1%  	 		 		
Book value per common share excluding foreign currency (5)	 		 		 		 		 		 		 		 	 $            92.29  	 	  $            84.83  	 	8.8%  	 		 		
													
Tangible book value per common share	 		 		 		 		 		 		 		 	 $            72.61  	 	  $            68.93  	 	5.3%  	 		 		
Tangible book value per common share excluding 2014 acquisitions (6)	 		 		 		 		 		 		 		 	 $            74.43  	 	  $            68.93  	 	8.0%  	 		 		
Tangible book value per common share excluding 2014 acquisitions and foreign currency  (5)  (6)	 		 		 		 		 		 		 		 	 $            76.70  	 	  $            68.93  	 	11.3%  	 		 		
													
Weighted average basic common shares outstanding	 		 	331.1  	 	340.9  	 		 		 		 		 	335.6  	 	340.9  	 		 		 		
Weighted average diluted common shares outstanding	 		 	334.6  	 	344.2  	 		 		 		 		 	339.0  	 	344.1  	 		 		 		
													
Debt plus trust preferred securities/ tangible capital	 		 		 		 		 		 		 		 	20.7%  	 	20.4%  	 		 		 		
(1) Prior periods on a constant dollar basis.
(2) See non-GAAP financial measures.
(3) Operating effective tax rate is dependent upon the mix of earnings from different jurisdictions with various tax rates. A change in the geographic mix of earnings would change the effective tax rate. The increase in the operating effective tax rate for the quarter and YTD was primarily due to a lower percentage of operating earnings being generated in lower tax paying jurisdictions.
(4) Q4 2014 and full year 2014 include $115 million due to a deferred tax charge related to unrealized foreign exchange losses.
(5) For 2014, book value per common share and tangible book value per common share exclude the impact of foreign currency movement.
(6) For 2014, tangible book value per common share excludes the impact from goodwill and intangibles relating to the acquisitions of the large corporate P&C insurance business of Itaú Seguros, S.A. and The Siam Commercial Samaggi Insurance PCL of $475 million and $125 million, respectively.

Financial Highlights	  	Page 1	

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

ACE Limited Consolidated	 	4Q-14	 	 	3Q-14	 	 	2Q-14	 	 	1Q-14	 	 	4Q-13	 	 	Full Year
2014	 	 	Full Year
2013	 	
Consolidated Results (Including Corporate) Excluding Life Segment (1)	 				 				 				 				 				 				 				
Gross premiums written	 	 $	        5,193  	  	 	 $	        5,736  	  	 	 $	        5,480  	  	 	 $	        4,852  	  	 	 $	        4,936  	  	 	 $	        21,261  	  	 	 $	        20,752  	  	
Net premiums written	 	 	3,803  	  	 	 	4,232  	  	 	 	4,061  	  	 	 	3,691  	  	 	 	3,712  	  	 	 	15,787  	  	 	 	15,053  	  	
Net premiums earned	 	 	3,871  	  	 	 	4,265  	  	 	 	3,842  	  	 	 	3,486  	  	 	 	3,882  	  	 	 	15,464  	  	 	 	14,708  	  	
Adjusted losses and loss expenses (1)	 	 	2,269  	  	 	 	2,494  	  	 	 	2,234  	  	 	 	2,012  	  	 	 	2,378  	  	 	 	9,009  	  	 	 	8,767  	  	
Policy acquisition costs	 	 	641  	  	 	 	702  	  	 	 	637  	  	 	 	617  	  	 	 	605  	  	 	 	2,597  	  	 	 	2,301  	  	
Administrative expenses	 	 	517  	  	 	 	483  	  	 	 	493  	  	 	 	467  	  	 	 	483  	  	 	 	1,960  	  	 	 	1,868  	  	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Underwriting income	 	 	444  	  	 	 	586  	  	 	 	478  	  	 	 	390  	  	 	 	416  	  	 	 	1,898  	  	 	 	1,772  	  	
								
Net investment income	 	 	508  	  	 	 	497  	  	 	 	490  	  	 	 	489  	  	 	 	493  	  	 	 	1,984  	  	 	 	1,893  	  	
Interest expense	 	 	66  	  	 	 	66  	  	 	 	69  	  	 	 	68  	  	 	 	67  	  	 	 	269  	  	 	 	260  	  	
Other income (expense) - operating (2)	 	 	(25) 	  	 	 	(29) 	  	 	 	(26) 	  	 	 	(23) 	  	 	 	(23) 	  	 	 	(103) 	  	 	 	(105) 	  	
Income tax expense	 	 	110  	  	 	 	169  	  	 	 	120  	  	 	 	88  	  	 	 	81  	  	 	 	487  	  	 	 	390  	  	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Operating income (including Corporate) excluding Life segment	 	 	751  	  	 	 	819  	  	 	 	753  	  	 	 	700  	  	 	 	738  	  	 	 	3,023  	  	 	 	2,910  	  	
Life segment operating income	 	 	76  	  	 	 	72  	  	 	 	72  	  	 	 	77  	  	 	 	86  	  	 	 	297  	  	 	 	307  	  	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Consolidated operating income	 	 	827  	  	 	 	891  	  	 	 	825  	  	 	 	777  	  	 	 	824  	  	 	 	3,320  	  	 	 	3,217  	  	
								
Adjusted net realized gains (losses) (1)	 	 	(210) 	  	 	 	(165) 	  	 	 	(81) 	  	 	 	(102) 	  	 	 	154  	  	 	 	(558) 	  	 	 	505  	  	
Net realized gains (losses) related to unconsolidated entities	 	 	49  	  	 	 	55  	  	 	 	36  	  	 	 	51  	  	 	 	25  	  	 	 	191  	  	 	 	92  	  	
Income tax expense (benefit) on adjusted net realized gains (losses) (3)	 	 	111  	  	 	 	(4) 	  	 	 	1  	  	 	 	(8) 	  	 	 	5  	  	 	 	100  	  	 	 	56  	  	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Consolidated net income	 	 $	555  	  	 	 $	785  	  	 	 $	779  	  	 	 $	734  	  	 	 $	998  	  	 	 $	2,853  	  	 	 $	3,758  	  	

% Change versus prior year period (1)	 				 				 				 				 				 				
Net premiums written as reported	 	 	2.4%  	  	 	 	2.2%  	  	 	 	4.0%  	  	 	 	12.0%  	  	 	 	18.2%  	  	 	 	4.9%  	  	 	 	6.8%  	  	
Net premiums earned as reported	 	 	-0.3%  	  	 	 	2.9%  	  	 	 	7.1%  	  	 	 	12.6%  	  	 	 	15.5%  	  	 	 	5.1%  	  	 	 	6.9%  	  	
								
Net premiums written constant $	 	 	5.0%  	  	 	 	1.7%  	  	 	 	4.5%  	  	 	 	13.7%  	  	 	 	19.8%  	  	 	 	5.9%  	  	 	 	7.8%  	  	
Net premiums earned constant $	 	 	2.1%  	  	 	 	2.5%  	  	 	 	7.4%  	  	 	 	14.8%  	  	 	 	17.0%  	  	 	 	6.2%  	  	 	 	7.9%  	  	
							
Other ratios	 				 				 				 				 				 				
Net premiums written/gross premiums written (1)	 	 	73%  	  	 	 	74%  	  	 	 	74%  	  	 	 	76%  	  	 	 	75%  	  	 	 	74%  	  	 	 	73%  	  	
Operating effective tax rate	 	 	12.7%  	  	 	 	16.9%  	  	 	 	13.7%  	  	 	 	11.5%  	  	 	 	9.2%  	  	 	 	13.9%  	  	 	 	11.6%  	  	
							
P&C combined ratio (1)	 				 				 				 				 				 				
Loss and loss expense ratio	 	 	58.6%  	  	 	 	58.5%  	  	 	 	58.2%  	  	 	 	57.7%  	  	 	 	61.3%  	  	 	 	58.3%  	  	 	 	59.6%  	  	
Policy acquisition cost ratio	 	 	16.6%  	  	 	 	16.5%  	  	 	 	16.6%  	  	 	 	17.7%  	  	 	 	15.6%  	  	 	 	16.8%  	  	 	 	15.7%  	  	
Administrative expense ratio	 	 	13.3%  	  	 	 	11.3%  	  	 	 	12.7%  	  	 	 	13.4%  	  	 	 	12.4%  	  	 	 	12.6%  	  	 	 	12.7%  	  	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Combined ratio	 	 	88.5%  	  	 	 	86.3%  	  	 	 	87.5%  	  	 	 	88.8%  	  	 	 	89.3%  	  	 	 	87.7%  	  	 	 	88.0%  	  	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Combined ratio excluding catastrophe losses and PPD	 	 	89.5%  	  	 	 	89.8%  	  	 	 	88.7%  	  	 	 	88.9%  	  	 	 	91.5%  	  	 	 	89.3%  	  	 	 	90.0%  	  	
								
P&C expense ratio	 	 	29.9%  	  	 	 	27.8%  	  	 	 	29.3%  	  	 	 	31.1%  	  	 	 	28.0%  	  	 	 	29.4%  	  	 	 	28.4%  	  	
P&C expense ratio excluding A&H	 	 	26.7%  	  	 	 	24.3%  	  	 	 	26.0%  	  	 	 	27.5%  	  	 	 	24.0%  	  	 	 	26.0%  	  	 	 	24.5%  	  	
								
Catastrophe reinstatement premiums collected - pre-tax	 	 $	2  	  	 	 $	1  	  	 	 $	-  	  	 	 $	-  	  	 	 $	1  	  	 	 $	3  	  	 	 $	3  	  	
Catastrophe losses - pre-tax	 	 $	71  	  	 	 $	87  	  	 	 $	80  	  	 	 $	53  	  	 	 $	37  	  	 	 $	291  	  	 	 $	230  	  	
Favorable prior period development (PPD) - pre-tax (4)	 	 $	(107) 	  	 	 $	(232) 	  	 	 $	(126) 	  	 	 $	(62) 	  	 	 $	(122) 	  	 	 $	(527) 	  	 	 $	(530) 	  	
Loss and loss expense ratio excluding catastrophe losses and PPD	 	 	59.6%  	  	 	 	62.2%  	  	 	 	59.4%  	  	 	 	57.5%  	  	 	 	63.5%  	  	 	 	59.8%  	  	 	 	61.8%  	  	
(1) See non-GAAP financial measures.
(2) Excludes portion of net realized investment gains and losses related to unconsolidated entities.
(3) Q4 2014 and full year 2014 include $115 million due to a deferred tax charge related to unrealized foreign exchange losses.
(4) For Q4 2014 and full year 2014, favorable prior period development is net of $8 million and $7 million, respectively, of net earned premium adjustments related to the Insurance – North American P&C, Insurance – North American Agriculture, and Global Reinsurance segments.

Consolidated Results	  	Page 2	

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

 	  	December 31
2014	 	  	September 30
2014	 	  	    June 30    
2014	 	  	    March 31    
2014	 	  	December 31
2013	 	
Assets	  				  				  				  				  				
Fixed maturities available for sale, at fair value	  	 $	49,395  	  	  	 $	49,148  	  	  	 $	51,601  	  	  	 $	49,611  	  	  	 $	49,254  	  	
Fixed maturities held to maturity, at amortized cost	  	 	7,331  	  	  	 	7,548  	  	  	 	5,774  	  	  	 	5,887  	  	  	 	6,098  	  	
Equity securities, at fair value	  	 	510  	  	  	 	546  	  	  	 	907  	  	  	 	851  	  	  	 	837  	  	
Short-term investments, at fair value	  	 	2,322  	  	  	 	2,753  	  	  	 	2,108  	  	  	 	2,526  	  	  	 	1,763  	  	
Other investments	  	 	3,346  	  	  	 	3,259  	  	  	 	3,230  	  	  	 	3,170  	  	  	 	2,976  	  	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total investments	  	 	62,904  	  	  	 	63,254  	  	  	 	63,620  	  	  	 	62,045  	  	  	 	60,928  	  	
						
Cash	  	 	655  	  	  	 	806  	  	  	 	594  	  	  	 	847  	  	  	 	579  	  	
Securities lending collateral	  	 	1,330  	  	  	 	1,440  	  	  	 	1,440  	  	  	 	1,550  	  	  	 	1,632  	  	
Insurance and reinsurance balances receivable	  	 	5,426  	  	  	 	5,189  	  	  	 	5,316  	  	  	 	4,761  	  	  	 	5,026  	  	
Reinsurance recoverable on losses and loss expenses	  	 	11,992  	  	  	 	10,945  	  	  	 	10,768  	  	  	 	10,755  	  	  	 	11,227  	  	
Deferred policy acquisition costs	  	 	2,601  	  	  	 	2,592  	  	  	 	2,562  	  	  	 	2,402  	  	  	 	2,313  	  	
Value of business acquired	  	 	466  	  	  	 	491  	  	  	 	514  	  	  	 	517  	  	  	 	536  	  	
Prepaid reinsurance premiums	  	 	2,026  	  	  	 	1,711  	  	  	 	1,867  	  	  	 	1,721  	  	  	 	1,675  	  	
Goodwill and other intangible assets	  	 	5,724  	  	  	 	5,425  	  	  	 	5,522  	  	  	 	5,382  	  	  	 	5,404  	  	
Deferred tax assets	  	 	295  	  	  	 	408  	  	  	 	234  	  	  	 	516  	  	  	 	616  	  	
Investments in partially-owned insurance companies	  	 	504  	  	  	 	495  	  	  	 	470  	  	  	 	466  	  	  	 	470  	  	
Other assets	  	 	4,325  	  	  	 	4,801  	  	  	 	4,540  	  	  	 	4,217  	  	  	 	4,104  	  	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total assets	  	 $	98,248  	  	  	 $	97,557  	  	  	 $	97,447  	  	  	 $	95,179  	  	  	 $	94,510  	  	

Liabilities	  				  				  				  				  				
Unpaid losses and loss expenses	  	 $	38,315  	  	  	 $	37,447  	  	  	 $	37,177  	  	  	 $	36,866  	  	  	 $	37,443  	  	
Unearned premiums	  	 	8,222  	  	  	 	8,020  	  	  	 	8,296  	  	  	 	7,791  	  	  	 	7,539  	  	
Future policy benefits	  	 	4,754  	  	  	 	4,782  	  	  	 	4,778  	  	  	 	4,632  	  	  	 	4,615  	  	
Insurance and reinsurance balances payable	  	 	4,095  	  	  	 	3,804  	  	  	 	3,794  	  	  	 	3,734  	  	  	 	3,628  	  	
Securities lending payable	  	 	1,331  	  	  	 	1,441  	  	  	 	1,441  	  	  	 	1,551  	  	  	 	1,633  	  	
Accounts payable, accrued expenses, and other liabilities	  	 	5,726  	  	  	 	5,829  	  	  	 	5,419  	  	  	 	5,218  	  	  	 	4,810  	  	
Short-term debt	  	 	2,552  	  	  	 	1,851  	  	  	 	1,851  	  	  	 	1,901  	  	  	 	1,901  	  	
Long-term debt	  	 	3,357  	  	  	 	4,057  	  	  	 	4,057  	  	  	 	3,808  	  	  	 	3,807  	  	
Trust preferred securities	  	 	309  	  	  	 	309  	  	  	 	309  	  	  	 	309  	  	  	 	309  	  	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total liabilities	  	 	68,661  	  	  	 	67,540  	  	  	 	67,122  	  	  	 	65,810  	  	  	 	65,685  	  	
					
Shareholders’ equity	  				  				  				  				
Total shareholders’ equity, excl. AOCI	  	 	28,396  	  	  	 	28,409  	  	  	 	28,230  	  	  	 	27,843  	  	  	 	27,673  	  	
Accumulated other comprehensive income (AOCI)	  	 	1,191  	  	  	 	1,608  	  	  	 	2,095  	  	  	 	1,526  	  	  	 	1,152  	  	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total shareholders’ equity	  	 	29,587  	  	  	 	30,017  	  	  	 	30,325  	  	  	 	29,369  	  	  	 	28,825  	  	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total liabilities and shareholders’ equity	  	 $	98,248  	  	  	 $	97,557  	  	  	 $	97,447  	  	  	 $	95,179  	  	  	 $	94,510  	  	

Book value per common share	  	 $	90.02  	  	  	 $	90.38  	  	  	 $	90.19  	  	  	 $	86.90  	  	  	 $	84.83  	  	
% change over prior quarter	  	 	-0.4%  	  	  	 	0.2%  	  	  	 	3.8%  	  	  	 	2.4%  	  	  	 	2.2%  	  	
Tangible book value per common share	  	 $	72.61  	  	  	 $	74.05  	  	  	 $	73.77  	  	  	 $	70.97  	  	  	 $	68.93  	  	
% change over prior quarter	  	 	-1.9%  	  	  	 	0.4%  	  	  	 	3.9%  	  	  	 	3.0%  	  	  	 	3.0%  	  	

      Consol Bal Sheet	  	Page 3	

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

ACE Limited Consolidated
																																									
 	 	4Q-14	 	 	4Q-13	 	 	  % Change  
4Q-14 vs.
    4Q-13    	 	 	  Constant $  
    4Q-13 (2)     	 	 	  Constant $  
% Change
4Q-14 vs.
    4Q-13 (2)     	 	 	Full Year
    2014    	 	 	Full Year
    2013    	 	 	% Change
2014 vs.
     2013    	 	 	Constant $
Full Year
    2013 (2)     	 	 	Constant $
% Change
2014 vs.
    2013  (2)     	 	
											
Net premiums written	 				 				 				 				 				 				 				 				 				 				
Property and all other	 	  $	        1,178 	  	 	  $	        1,132 	  	 	 	4.2% 	  	 				 				 	  $	        5,249 	  	 	  $	        4,855 	  	 	 	8.1% 	  	 				 				
Casualty	 	 	1,718 	  	 	 	1,644 	  	 	 	4.6% 	  	 				 				 	 	6,213 	  	 	 	5,932 	  	 	 	4.8% 	  	 				 				
	 	 	 	 	 	 	 	 	 				 				 				 	 	 	 	 	 	 	 	 				 				 				
Subtotal	 	 	2,896 	  	 	 	2,776 	  	 	 	4.4% 	  	 	  $	        2,720 	  	 	 	6.6% 	  	 	 	11,462 	  	 	 	10,787 	  	 	 	6.3% 	  	 	  $	        10,709 	  	 	 	7.0% 	  	
Agriculture	 	 	244 	  	 	 	256 	  	 	 	-5.0% 	  	 	 	256 	  	 	 	-5.0% 	  	 	 	1,590 	  	 	 	1,627 	  	 	 	-2.3% 	  	 	 	1,627 	  	 	 	-2.3% 	  	
Personal accident (A&H) (1)	 	 	920 	  	 	 	937 	  	 	 	-1.9% 	  	 	 	898 	  	 	 	2.4% 	  	 	 	3,735 	  	 	 	3,655 	  	 	 	2.2% 	  	 	 	3,577 	  	 	 	4.4% 	  	
Life	 	 	266 	  	 	 	247 	  	 	 	7.8% 	  	 	 	240 	  	 	 	10.6% 	  	 	 	1,012 	  	 	 	956 	  	 	 	5.9% 	  	 	 	934 	  	 	 	8.4% 	  	
	 	 	 	 	 	 	 	 	 				 	 	 	 	 				 	 	 	 	 	 	 	 	 				 	 	 	 	 				
Total consolidated	 	  $	        4,326 	  	 	  $	4,216 	  	 	 	2.6% 	  	 	  $	4,114 	  	 	 	5.2% 	  	 	  $	17,799 	  	 	  $	17,025 	  	 	 	4.6% 	  	 	  $	16,847 	  	 	 	5.7% 	  	
	 	 	 	 	 	 	 	 	 				 	 	 	 	 				 	 	 	 	 	 	 	 	 				 	 	 	 	 				
% of Total Consolidated	 				 				 				 				 				 				 				 				 				 				
Property and all other	 	 	27% 	  	 	 	27% 	  	 				 				 				 	 	29% 	  	 	 	29% 	  	 				 				 				
Casualty	 	 	40% 	  	 	 	39% 	  	 				 				 				 	 	35% 	  	 	 	34% 	  	 				 				 				
	 	 	 	 	 	 	 	 	 				 				 				 	 	 	 	 	 	 	 	 				 				 				
Subtotal	 	 	67% 	  	 	 	66% 	  	 				 				 				 	 	64% 	  	 	 	63% 	  	 				 				 				
Agriculture	 	 	6% 	  	 	 	6% 	  	 				 				 				 	 	9% 	  	 	 	10% 	  	 				 				 				
Personal accident (A&H) (1)	 	 	21% 	  	 	 	22% 	  	 				 				 				 	 	21% 	  	 	 	21% 	  	 				 				 				
Life	 	 	6% 	  	 	 	6% 	  	 				 				 				 	 	6% 	  	 	 	6% 	  	 				 				 				
	 	 	 	 	 	 	 	 	 				 				 				 	 	 	 	 	 	 	 	 				 				 				
Total consolidated	 	 	100% 	  	 	 	100% 	  	 				 				 				 	 	100% 	  	 	 	100% 	  	 				 				 				
	 	 	 	 	 	 	 	 	 				 				 				 	 	 	 	 	 	 	 	 				 				 				
Net premiums earned	 				 				 				 				 				 				 				 				 				 				
Property and all other	 	  $	1,314 	  	 	  $	1,261 	  	 	 	4.2% 	  	 				 				 	  $	5,161 	  	 	  $	4,704 	  	 	 	9.7% 	  	 				 				
Casualty	 	 	1,565 	  	 	 	1,522 	  	 	 	2.9% 	  	 				 				 	 	6,080 	  	 	 	5,759 	  	 	 	5.6% 	  	 				 				
	 	 	 	 	 	 	 	 	 				 				 				 	 	 	 	 	 	 	 	 				 				 				
Subtotal	 	 	2,879 	  	 	 	2,783 	  	 	 	3.5% 	  	 	  $	2,727 	  	 	 	5.6% 	  	 	 	11,241 	  	 	 	10,463 	  	 	 	7.4% 	  	 	  $	10,379 	  	 	 	8.3% 	  	
Agriculture	 	 	327 	  	 	 	426 	  	 	 	-23.4% 	  	 	 	426 	  	 	 	-23.4% 	  	 	 	1,526 	  	 	 	1,678 	  	 	 	-9.1% 	  	 	 	1,678 	  	 	 	-9.1% 	  	
Personal accident (A&H) (1)	 	 	908 	  	 	 	920 	  	 	 	-1.3% 	  	 	 	881 	  	 	 	3.0% 	  	 	 	3,678 	  	 	 	3,567 	  	 	 	3.1% 	  	 	 	3,493 	  	 	 	5.3% 	  	
Life	 	 	256 	  	 	 	234 	  	 	 	9.8% 	  	 	 	228 	  	 	 	12.7% 	  	 	 	981 	  	 	 	905 	  	 	 	8.5% 	  	 	 	886 	  	 	 	10.8% 	  	
	 	 	 	 	 	 	 	 	 				 	 	 	 	 				 	 	 	 	 	 	 	 	 				 	 	 	 	 				
Total consolidated	 	  $	4,370 	  	 	  $	4,363 	  	 	 	0.2% 	  	 	  $	4,262 	  	 	 	2.5% 	  	 	  $	17,426	  	 	  $	16,613 	  	 	 	4.9% 	  	 	  $	16,436 	  	 	 	6.0% 	  	
	 	 	 	 	 	 	 	 	 				 	 	 	 	 				 	 	 	 	 	 	 	 	 				 	 	 	 	 				
% of Total Consolidated	 				 				 				 				 				 				 				 				 				 				
Property and all other	 	 	30% 	  	 	 	29% 	  	 				 				 				 	 	29% 	  	 	 	28% 	  	 				 				 				
Casualty	 	 	36% 	  	 	 	35% 	  	 				 				 				 	 	35% 	  	 	 	35% 	  	 				 				 				
	 	 	 	 	 	 	 	 	 				 				 				 	 	 	 	 	 	 	 	 				 				 				
Subtotal	 	 	66% 	  	 	 	64% 	  	 				 				 				 	 	64% 	  	 	 	63% 	  	 				 				 				
Agriculture	 	 	7% 	  	 	 	10% 	  	 				 				 				 	 	9% 	  	 	 	10% 	  	 				 				 				
Personal accident (A&H) (1)	 	 	21% 	  	 	 	21% 	  	 				 				 				 	 	21% 	  	 	 	21% 	  	 				 				 				
Life	 	 	6% 	  	 	 	5% 	  	 				 				 				 	 	6% 	  	 	 	6% 	  	 				 				 				
	 	 	 	 	 	 	 	 	 				 				 				 	 	 	 	 	 	 	 	 				 				 				
Total consolidated	 	 	100% 	  	 	 	100% 	  	 				 				 				 	 	100% 	  	 	 	100% 	  	 				 				 				
	 	 	 	 	 	 	 	 	 				 				 				 	 	 	 	 	 	 	 	 				 				 				
Operating income, after-tax	 				 				 				 				 				 				 				 				 				 				
Property, casualty, and all other	 	  $	620 	  	 	  $	680 	  	 	 	-8.8% 	  	 	  $	673 	  	 	 	-7.9% 	  	 	  $	2,581 	  	 	  $	2,515 	  	 	 	2.6% 	  	 	  $	2,514 	  	 	 	2.7% 	  	
Agriculture	 	 	45 	  	 	 	(20)	  	 	 	NM 	  	 	 	(20)	  	 	 	NM 	  	 	 	96 	  	 	 	63 	  	 	 	51.7% 	  	 	 	63 	  	 	 	51.7% 	  	
Personal accident (A&H) (1)	 	 	121 	  	 	 	129 	  	 	 	-6.3% 	  	 	 	125 	  	 	 	-3.1% 	  	 	 	484 	  	 	 	497 	  	 	 	-2.6% 	  	 	 	488 	  	 	 	-0.9% 	  	
Life	 	 	41 	  	 	 	35 	  	 	 	18.3% 	  	 	 	36 	  	 	 	16.3% 	  	 	 	159 	  	 	 	142 	  	 	 	12.2% 	  	 	 	143 	  	 	 	11.6% 	  	
	 	 	 	 	 	 	 	 	 				 	 	 	 	 				 	 	 	 	 	 	 	 	 				 	 	 	 	 				
Total consolidated	 	  $	827 	  	 	  $	824 	  	 	 	0.4% 	  	 	  $	814 	  	 	 	1.7% 	  	 	  $	3,320 	  	 	  $	3,217 	  	 	 	3.2% 	  	 	  $	3,208 	  	 	 	3.5% 	  	
	 	 	 	 	 	 	 	 	 				 	 	 	 	 				 	 	 	 	 	 	 	 	 				 	 	 	 	 				
% of Total Consolidated	  	 				 				 				 				 				 				 				 				
Property, casualty, and all other	 	 	75% 	  	 	 	82% 	  	 				 				 				 	 	78% 	  	 	 	78% 	  	 				 				 				
Agriculture	 	 	5% 	  	 	 	-2% 	  	 				 				 				 	 	3% 	  	 	 	2% 	  	 				 				 				
Personal accident (A&H) (1)	 	 	15% 	  	 	 	16% 	  	 				 				 				 	 	14% 	  	 	 	15% 	  	 				 				 				
Life	 	 	5% 	  	 	 	4% 	  	 				 				 				 	 	5% 	  	 	 	5% 	  	 				 				 				
	 	 	 	 	 	 	 	 	 				 				 				 	 	 	 	 	 	 	 	 				 				 				
Total consolidated	 	 	100% 	  	 	 	100% 	  	 				 				 				 	 	100% 	  	 	 	100% 	  	 				 				 				
	 	 	 	 	 	 	 	 	 				 				 				 	 	 	 	 	 	 	 	 				 				 				
(1) For purposes of this schedule only, A&H results from our Combined North American and International businesses, normally included in the Life and Insurance – Overseas General segments, respectively, are included in the Personal Accident (A&H) line items above.
(2) Prior periods on a constant-dollar basis.

			
Line of Business	  	Page 4	

					
	  	ACE Limited
 
Global P&C Results - Consecutive Quarters
 
(in millions of U.S. dollars, except ratios)
 
(Unaudited)	  		
 
Global P&C includes the company’s Insurance – North American P&C segment (refer to page 7), Insurance – Overseas General segment (refer to page 9), Global Reinsurance segment (refer to page 10), and Corporate (not separately disclosed in the Financial Supplement). Global P&C excludes the Insurance – North American Agriculture segment.

Global P&C (Including Corporate)	  	    4Q-14    	 	  	    3Q-14    	 	  	    2Q-14    	 	  	    1Q-14    	 	  	    4Q-13    	 	  	    Full Year    
2014	 	  	    Full Year    
2013	 	
								
Gross premiums written	  	  $	 4,891  	  	  	  $	 4,495  	  	  	  $	 4,879  	  	  	  $	 4,618  	  	  	  $	 4,719  	  	  	  $	 18,883  	  	  	  $	18,091  	  	
Net premiums written	  	 	3,559  	  	  	 	3,468  	  	  	 	3,673  	  	  	 	3,497  	  	  	 	3,456  	  	  	 	14,197  	  	  	 	13,426  	  	
Net premiums earned	  	 	3,544  	  	  	 	3,499  	  	  	 	3,512  	  	  	 	3,383  	  	  	 	3,456  	  	  	 	13,938  	  	  	 	13,030  	  	
Losses and loss expenses	  	 	2,017  	  	  	 	1,853  	  	  	 	1,955  	  	  	 	1,884  	  	  	 	1,925  	  	  	 	7,709  	  	  	 	7,242  	  	
Policy acquisition costs	  	 	629  	  	  	 	661  	  	  	 	614  	  	  	 	612  	  	  	 	608  	  	  	 	2,516  	  	  	 	2,248  	  	
Administrative expenses	  	 	513  	  	  	 	480  	  	  	 	492  	  	  	 	466  	  	  	 	485  	  	  	 	1,951  	  	  	 	1,857  	  	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Underwriting income
 	  	 	385  	  	  	 	505  	  	  	 	451  	  	  	 	421  	  	  	 	438  	  	  	 	1,762  	  	  	 	1,683  	  	
Net investment income	  	 
 	 
501  	 

491  	 

484  	 

482  	 

486  	 

1,958  	 

1,867  	 
  	
Interest expense	  	 	66  	  	  	 	66  	  	  	 	69  	  	  	 	68  	  	  	 	66  	  	  	 	269  	  	  	 	259  	  	
Other income (expense) - operating (1)	  	 	(16) 	  	  	 	(22) 	  	  	 	(17) 	  	  	 	(15) 	  	  	 	(15) 	  	  	 	(70) 	  	  	 	(73) 	  	
Income tax expense	  	 	98  	  	  	 	146  	  	  	 	115  	  	  	 	95  	  	  	 	85  	  	  	 	454  	  	  	 	371  	  	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Global P&C operating income	  	 	706  	  	  	 	762  	  	  	 	734  	  	  	 	725  	  	  	 	758  	  	  	 	2,927  	  	  	 	2,847  	  	
								
Net realized gains (losses)	  	 	(67) 	  	  	 	(76) 	  	  	 	(9) 	  	  	 	(26) 	  	  	 	-  	  	  	 	(178) 	  	  	 	143  	  	
Net realized gains (losses) related to unconsolidated entities	  	 	43  	  	  	 	51  	  	  	 	38  	  	  	 	53  	  	  	 	27  	  	  	 	185  	  	  	 	87  	  	
Income tax expense (benefit) on net realized gains (losses) (2)	  	 	110  	  	  	 	(5) 	  	  	 	1  	  	  	 	(5) 	  	  	 	6  	  	  	 	101  	  	  	 	55  	  	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Global P&C net income	  	  $	572  	  	  	  $	742  	  	  	  $	762  	  	  	  $	757  	  	  	  $	779  	  	  	  $	2,833  	  	  	  $	3,022  	  	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
% Change versus prior year period	  				  				  				  				  				  				  				
Net premiums written as reported	  	 	3.0%  	  	  	 	4.0%  	  	  	 	6.4%  	  	  	 	9.9%  	  	  	 	13.1%  	  	  	 	5.7%  	  	  	 	9.7%  	  	
Net premiums earned as reported	  	 	2.6%  	  	  	 	6.2%  	  	  	 	8.5%  	  	  	 	11.2%  	  	  	 	11.6%  	  	  	 	7.0%  	  	  	 	9.6%  	  	
								
Net premiums written constant $	  	 	5.8%  	  	  	 	3.4%  	  	  	 	7.0%  	  	  	 	11.6%  	  	  	 	14.7%  	  	  	 	6.9%  	  	  	 	11.0%  	  	
Net premiums earned constant $	  	 	5.4%  	  	  	 	5.7%  	  	  	 	8.8%  	  	  	 	13.4%  	  	  	 	13.1%  	  	  	 	8.2%  	  	  	 	10.8%  	  	
								
Other ratios	  				  				  				  				  				  				  				
Net premiums written/gross premiums written	  	 	73%  	  	  	 	77%  	  	  	 	75%  	  	  	 	76%  	  	  	 	73%  	  	  	 	75%  	  	  	 	74%  	  	
								
Combined ratio	  				  				  				  				  				  				  				
Loss and loss expense ratio	  	 	56.9%  	  	  	 	52.9%  	  	  	 	55.7%  	  	  	 	55.7%  	  	  	 	55.7%  	  	  	 	55.3%  	  	  	 	55.6%  	  	
Policy acquisition cost ratio	  	 	17.8%  	  	  	 	18.9%  	  	  	 	17.5%  	  	  	 	18.1%  	  	  	 	17.6%  	  	  	 	18.0%  	  	  	 	17.3%  	  	
Administrative expense ratio	  	 	14.4%  	  	  	 	13.8%  	  	  	 	13.9%  	  	  	 	13.8%  	  	  	 	14.1%  	  	  	 	14.1%  	  	  	 	14.2%  	  	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Combined ratio	  	 	89.1%  	  	  	 	85.6%  	  	  	 	87.1%  	  	  	 	87.6%  	  	  	 	87.4%  	  	  	 	87.4%  	  	  	 	87.1%  	  	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Combined ratio excluding catastrophe losses and PPD	  	 	90.2%  	  	  	 	89.8%  	  	  	 	88.7%  	  	  	 	89.0%  	  	  	 	89.9%  	  	  	 	89.4%  	  	  	 	89.4%  	  	
								
Expense ratio	  	 	32.2%  	  	  	 	32.7%  	  	  	 	31.4%  	  	  	 	31.9%  	  	  	 	31.7%  	  	  	 	32.1%  	  	  	 	31.5%  	  	
Expense ratio excluding A&H	  	 	29.2%  	  	  	 	29.3%  	  	  	 	28.2%  	  	  	 	28.4%  	  	  	 	27.9%  	  	  	 	28.8%  	  	  	 	27.9%  	  	
								
Catastrophe reinstatement premiums collected - pre-tax	  	  $	2  	  	  	  $	1  	  	  	  $	-  	  	  	  $	-  	  	  	  $	1  	  	  	  $	3  	  	  	  $	3  	  	
Catastrophe losses - pre-tax	  	  $	70  	  	  	  $	85  	  	  	  $	71  	  	  	  $	52  	  	  	  $	35  	  	  	  $	278  	  	  	  $	223  	  	
Favorable prior period development (PPD) - pre-tax (3)	  	  $	(106) 	  	  	  $	(229) 	  	  	  $	(126) 	  	  	  $	(100) 	  	  	  $	(122) 	  	  	  $	(561) 	  	  	  $	(517) 	  	
Loss and loss expense ratio excluding catastrophe losses and PPD	  	 	57.9%  	  	  	 	57.5%  	  	  	 	57.3%  	  	  	 	57.1%  	  	  	 	58.3%  	  	  	 	57.5%  	  	  	 	58.0%  	  	
(1) Excludes portion of net realized investment gains and losses related to unconsolidated entities.
(2) Q4 2014 and full year 2014 include $115 million due to a deferred tax charge related to unrealized foreign exchange losses.
(3) For Q4 2014, favorable prior period development includes $2 million of favorable net earned premium adjustments on loss sensitive policies and $1 million of favorable profit-sharing commissions that are included in the expense ratio. For full year 2014, favorable prior period development is net of $32 million of net earned premium adjustments on loss sensitive policies and $1 million of profit-sharing commissions that are included in the expense ratio.

			
Global P&C	  	Page 5	

					
	  	ACE Limited
 
Insurance - North American
 
(in millions of U.S. dollars, except ratios)
 
(Unaudited)

The table below combines the company’s Insurance – North American P&C segment (refer to page 7) and Insurance – North American Agriculture segment (refer to page 8) into total Insurance – North American business presentation for reference purposes only.
Insurance - North American
																													
 	  	4Q-14	 	  	3Q-14	 	  	2Q-14	 	  	1Q-14	 	  	4Q-13	 	  	Full Year
2014	 	  	Full Year
2013	 	
								
Gross premiums written	  	$	        2,841  	  	  	$	        3,367  	  	  	$	        2,948  	  	  	$	        2,258  	  	  	$	        2,656  	  	  	$	        11,414  	  	  	$	        11,381  	  	
Net premiums written	  	 	1,913  	  	  	 	2,305  	  	  	 	2,023  	  	  	 	1,612  	  	  	 	1,858  	  	  	 	7,853  	  	  	 	7,542  	  	
Net premiums earned	  	 	1,887  	  	  	 	2,284  	  	  	 	1,872  	  	  	 	1,590  	  	  	 	1,937  	  	  	 	7,633  	  	  	 	7,399  	  	
Losses and loss expenses (1)	  	 	1,329  	  	  	 	1,694  	  	  	 	1,295  	  	  	 	1,068  	  	  	 	1,438  	  	  	 	5,386  	  	  	 	5,301  	  	
Policy acquisition costs	  	 	166  	  	  	 	210  	  	  	 	175  	  	  	 	164  	  	  	 	150  	  	  	 	715  	  	  	 	650  	  	
Administrative expenses	  	 	181  	  	  	 	168  	  	  	 	176  	  	  	 	162  	  	  	 	162  	  	  	 	687  	  	  	 	612  	  	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Underwriting income	  	 	211  	  	  	 	212  	  	  	 	226  	  	  	 	196  	  	  	 	187  	  	  	 	845  	  	  	 	836  	  	
								
Net investment income	  	 	280  	  	  	 	283  	  	  	 	271  	  	  	 	277  	  	  	 	273  	  	  	 	1,111  	  	  	 	1,047  	  	
Interest expense	  	 	2  	  	  	 	2  	  	  	 	2  	  	  	 	3  	  	  	 	2  	  	  	 	9  	  	  	 	6  	  	
Other income (expense) - operating	  	 	(2) 	  	  	 	(8) 	  	  	 	(4) 	  	  	 	(8) 	  	  	 	(7) 	  	  	 	(22) 	  	  	 	(37) 	  	
Income tax expense	  	 	70  	  	  	 	91  	  	  	 	94  	  	  	 	76  	  	  	 	69  	  	  	 	331  	  	  	 	331  	  	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Operating income	  	 	417  	  	  	 	394  	  	  	 	397  	  	  	 	386  	  	  	 	382  	  	  	 	1,594  	  	  	 	1,509  	  	
								
Net realized gains (losses) (1)	  	 	(39) 	  	  	 	(5) 	  	  	 	(11) 	  	  	 	(9) 	  	  	 	9  	  	  	 	(64) 	  	  	 	74  	  	
Net realized gains (losses) related to unconsolidated entities	  	 	19  	  	  	 	32  	  	  	 	19  	  	  	 	20  	  	  	 	19  	  	  	 	90  	  	  	 	63  	  	
Income tax expense on net realized gains (losses)	  	 	1  	  	  	 	5  	  	  	 	2  	  	  	 	-  	  	  	 	10  	  	  	 	8  	  	  	 	36  	  	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Net income	  	$	396  	  	  	$	416  	  	  	$	403  	  	  	$	397  	  	  	$	400  	  	  	$	1,612  	  	  	$	1,610  	  	

Combined ratio	  				  				  				  				  				  				  				
Loss and loss expense ratio	  	 	70.4%  	  	  	 	74.1%  	  	  	 	69.2%  	  	  	 	67.2%  	  	  	 	74.2%  	  	  	 	70.6%  	  	  	 	71.6%  	  	
Policy acquisition cost ratio	  	 	8.8%  	  	  	 	9.2%  	  	  	 	9.3%  	  	  	 	10.3%  	  	  	 	7.7%  	  	  	 	9.4%  	  	  	 	8.8%  	  	
Administrative expense ratio	  	 	9.6%  	  	  	 	7.4%  	  	  	 	9.4%  	  	  	 	10.2%  	  	  	 	8.5%  	  	  	 	8.9%  	  	  	 	8.3%  	  	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Combined ratio	  	 	88.8%  	  	  	 	90.7%  	  	  	 	87.9%  	  	  	 	87.7%  	  	  	 	90.4%  	  	  	 	88.9%  	  	  	 	88.7%  	  	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Combined ratio excluding catastrophe losses and PPD	  	 	87.9%  	  	  	 	88.9%  	  	  	 	87.6%  	  	  	 	87.2%  	  	  	 	91.1%  	  	  	 	88.0%  	  	  	 	89.3%  	  	
								
Catastrophe reinstatement premiums expensed - pre-tax	  	$	-  	  	  	$	-  	  	  	$	-  	  	  	$	-  	  	  	$	-  	  	  	$	-  	  	  	$	(1) 	  	
Catastrophe losses - pre-tax	  	$	30  	  	  	$	37  	  	  	$	45  	  	  	$	33  	  	  	$	14  	  	  	$	145  	  	  	$	101  	  	
Unfavorable (favorable) prior period development (PPD) - pre-tax	  	$	(12) 	  	  	$	8  	  	  	$	(39) 	  	  	$	(30) 	  	  	$	(28) 	  	  	$	(73) 	  	  	$	(147) 	  	
Loss and loss expense ratio excluding catastrophe losses and PPD	  	 	69.6%  	  	  	 	72.5%  	  	  	 	68.9%  	  	  	 	66.2%  	  	  	 	75.0%  	  	  	 	69.6%  	  	  	 	72.4%  	  	
								
% Change versus prior year period	  				  				  				  				  				  				  				
Net premiums written	  	 	3.0%  	  	  	 	-0.1%  	  	  	 	2.1%  	  	  	 	15.5%  	  	  	 	22.5%  	  	  	 	4.1%  	  	  	 	4.6%  	  	
Net premiums earned	  	 	-2.6%  	  	  	 	-0.4%  	  	  	 	5.2%  	  	  	 	14.4%  	  	  	 	20.4%  	  	  	 	3.2%  	  	  	 	5.4%  	  	
								
Other ratios	  				  				  				  				  				  				  				
Net premiums written/gross premiums written	  	 	67%  	  	  	 	68%  	  	  	 	69%  	  	  	 	71%  	  	  	 	70%  	  	  	 	69%  	  	  	 	66%  	  	
(1) See non-GAAP financial measures.

			
Insurance - North American	  	Page 6	

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

Insurance – North American P&C	 	4Q-14	 	 	3Q-14	 	 	2Q-14	 	 	1Q-14	 	 	4Q-13	 	 	    Full Year    
2014	 	 	    Full Year    
2013	 	
								
Gross premiums written	 	  $	        2,539  	  	 	  $	        2,126  	  	 	  $	        2,347  	  	 	  $	        2,024  	  	 	  $	        2,439  	  	 	  $	        9,036  	  	 	  $	        8,720  	  	
Net premiums written	 	 	1,669  	  	 	 	1,541  	  	 	 	1,635  	  	 	 	1,418  	  	 	 	1,602  	  	 	 	6,263  	  	 	 	5,915  	  	
Net premiums earned	 	 	1,560  	  	 	 	1,518  	  	 	 	1,542  	  	 	 	1,487  	  	 	 	1,511  	  	 	 	6,107  	  	 	 	5,721  	  	
Losses and loss expenses	 	 	1,077  	  	 	 	1,053  	  	 	 	1,016  	  	 	 	940  	  	 	 	985  	  	 	 	4,086  	  	 	 	3,776  	  	
Policy acquisition costs	 	 	154  	  	 	 	169  	  	 	 	152  	  	 	 	159  	  	 	 	153  	  	 	 	634  	  	 	 	597  	  	
Administrative expenses	 	 	177  	  	 	 	165  	  	 	 	175  	  	 	 	161  	  	 	 	164  	  	 	 	678  	  	 	 	601  	  	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Underwriting income	 	 	152  	  	 	 	131  	  	 	 	199  	  	 	 	227  	  	 	 	209  	  	 	 	709  	  	 	 	747  	  	
								
Net investment income	 	 	273  	  	 	 	277  	  	 	 	265  	  	 	 	270  	  	 	 	266  	  	 	 	1,085  	  	 	 	1,021  	  	
Interest expense	 	 	2  	  	 	 	2  	  	 	 	2  	  	 	 	3  	  	 	 	1  	  	 	 	9  	  	 	 	5  	  	
Other income (expense) - operating	 	 	7  	  	 	 	(1) 	  	 	 	5  	  	 	 	-  	  	 	 	1  	  	 	 	11  	  	 	 	(5) 	  	
Income tax expense	 	 	58  	  	 	 	68  	  	 	 	89  	  	 	 	83  	  	 	 	73  	  	 	 	298  	  	 	 	312  	  	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Operating income	 	 	372  	  	 	 	337  	  	 	 	378  	  	 	 	411  	  	 	 	402  	  	 	 	1,498  	  	 	 	1,446  	  	
								
Net realized gains (losses)	 	 	(42) 	  	 	 	(5) 	  	 	 	(11) 	  	 	 	(9) 	  	 	 	9  	  	 	 	(67) 	  	 	 	72  	  	
Net realized gains (losses) related to unconsolidated entities	 	 	19  	  	 	 	32  	  	 	 	19  	  	 	 	20  	  	 	 	19  	  	 	 	90  	  	 	 	63  	  	
Income tax expense on net realized gains (losses)	 	 	1  	  	 	 	5  	  	 	 	2  	  	 	 	-  	  	 	 	10  	  	 	 	8  	  	 	 	35  	  	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income	 	  $	348  	  	 	  $	359  	  	 	  $	384  	  	 	  $	422  	  	 	  $	420  	  	 	  $	1,513  	  	 	  $	1,546  	  	

Combined ratio	 				 				 				 				 				 				 				
Loss and loss expense ratio	 	 	69.0%  	  	 	 	69.3%  	  	 	 	66.0%  	  	 	 	63.2%  	  	 	 	65.2%  	  	 	 	66.9%  	  	 	 	66.0%  	  	
Policy acquisition cost ratio	 	 	9.9%  	  	 	 	11.1%  	  	 	 	9.8%  	  	 	 	10.7%  	  	 	 	10.1%  	  	 	 	10.4%  	  	 	 	10.4%  	  	
Administrative expense ratio	 	 	11.3%  	  	 	 	11.0%  	  	 	 	11.3%  	  	 	 	10.8%  	  	 	 	10.9%  	  	 	 	11.1%  	  	 	 	10.5%  	  	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Combined ratio	 	 	90.2%  	  	 	 	91.4%  	  	 	 	87.1%  	  	 	 	84.7%  	  	 	 	86.2%  	  	 	 	88.4%  	  	 	 	86.9%  	  	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Combined ratio excluding catastrophe losses and PPD	 	 	89.1%  	  	 	 	88.5%  	  	 	 	87.3%  	  	 	 	87.1%  	  	 	 	87.2%  	  	 	 	88.0%  	  	 	 	87.6%  	  	
								
Catastrophe reinstatement premiums expensed - pre-tax	 	  $	-  	  	 	  $	-  	  	 	  $	-  	  	 	  $	-  	  	 	  $	-  	  	 	  $	-  	  	 	  $	(1) 	  	
Catastrophe losses - pre-tax	 	  $	29  	  	 	  $	35  	  	 	  $	36  	  	 	  $	32  	  	 	  $	12  	  	 	  $	132  	  	 	  $	94  	  	
Unfavorable (favorable) prior period development (PPD) - pre-tax (1)	 	  $	(11)  	  	 	  $	11  	  	 	  $	(39) 	  	 	  $	(68) 	  	 	  $	(28) 	  	 	  $	(107) 	  	 	  $	(134) 	  	
Loss and loss expense ratio excluding catastrophe losses and PPD	 	 	67.8%  	  	 	 	66.9%  	  	 	 	66.2%  	  	 	 	65.7%  	  	 	 	66.3%  	  	 	 	66.6%  	  	 	 	66.8%  	  	
								
% Change versus prior year period	 				 				 				 				 				 				 				
Net premiums written	 	 	4.2%  	  	 	 	2.7%  	  	 	 	6.9%  	  	 	 	10.5%  	  	 	 	11.8%  	  	 	 	5.9%  	  	 	 	10.6%  	  	
Net premiums earned	 	 	3.3%  	  	 	 	5.1%  	  	 	 	7.9%  	  	 	 	11.2%  	  	 	 	12.3%  	  	 	 	6.8%  	  	 	 	11.1%  	  	
								
Other ratios	 				 				 				 				 				 				 				
Net premiums written/gross premiums written	 	 	66%  	  	 	 	72%  	  	 	 	70%  	  	 	 	70%  	  	 	 	66%  	  	 	 	69%  	  	 	 	68%  	  	
(1) For Q4 2014, prior period development includes $123 million of adverse development for legacy asbestos and environmental liability exposures, $7 million of adverse development for other run-off business exposures, $3 million of favorable net earned premium adjustments on loss sensitive polices, and $1 million of favorable profit-sharing commissions that are included in the expense ratio. For full year 2014, favorable prior period development is net of $186 million of adverse development for legacy asbestos and environmental liability exposures, $29 million of adverse development for other run-off business exposures, $22 million of unfavorable net earned premium adjustments on loss sensitive policies, and $1 million of unfavorable profit-sharing commissions that are included in the expense ratio.

Insurance - North American P&C	  	Page 7	

					
	  	ACE Limited
 
Segment Results - Consecutive Quarters
 
(in millions of U.S. dollars, except ratios)
 
(Unaudited)	  		
 
Insurance – North American Agriculture
																													
 	  	    4Q-14    	 	  	    3Q-14    	 	  	    2Q-14    	 	  	    1Q-14    	 	  	    4Q-13    	 	  	    Full Year    
2014	 	  	    Full Year    
2013	 	
								
Gross premiums written	  	 $	        302  	  	  	 $	        1,241  	  	  	 $	        601  	  	  	 $	        234  	  	  	 $	        217  	  	  	 $	        2,378  	  	  	 $	        2,661  	  	
Net premiums written	  	 	244  	  	  	 	764  	  	  	 	388  	  	  	 	194  	  	  	 	256  	  	  	 	1,590  	  	  	 	1,627  	  	
Net premiums earned	  	 	327  	  	  	 	766  	  	  	 	330  	  	  	 	103  	  	  	 	426  	  	  	 	1,526  	  	  	 	1,678  	  	
Losses and loss expenses (1)	  	 	252  	  	  	 	641  	  	  	 	279  	  	  	 	128  	  	  	 	453  	  	  	 	1,300  	  	  	 	1,525  	  	
Policy acquisition costs	  	 	12  	  	  	 	41  	  	  	 	23  	  	  	 	5  	  	  	 	(3) 	  	  	 	81  	  	  	 	53  	  	
Administrative expenses	  	 	4  	  	  	 	3  	  	  	 	1  	  	  	 	1  	  	  	 	(2) 	  	  	 	9  	  	  	 	11  	  	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Underwriting income (loss) (2)	  	 	59  	  	  	 	81  	  	  	 	27  	  	  	 	(31) 	  	  	 	(22) 	  	  	 	136  	  	  	 	89  	  	
								
Net investment income	  	 	7  	  	  	 	6  	  	  	 	6  	  	  	 	7  	  	  	 	7  	  	  	 	26  	  	  	 	26  	  	
Interest expense	  	 	-  	  	  	 	-  	  	  	 	-  	  	  	 	-  	  	  	 	1  	  	  	 	-  	  	  	 	1  	  	
Other income (expense) - operating	  	 	(9) 	  	  	 	(7) 	  	  	 	(9) 	  	  	 	(8) 	  	  	 	(8) 	  	  	 	(33) 	  	  	 	(32) 	  	
Income tax expense (benefit)	  	 	12  	  	  	 	23  	  	  	 	5  	  	  	 	(7) 	  	  	 	(4) 	  	  	 	33  	  	  	 	19  	  	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Operating income (loss)	  	 	45  	  	  	 	57  	  	  	 	19  	  	  	 	(25) 	  	  	 	(20) 	  	  	 	96  	  	  	 	63  	  	
								
Net realized gains (losses) excluding gains (losses) on crop derivatives (1)	  	 	3  	  	  	 	-  	  	  	 	-  	  	  	 	-  	  	  	 	-  	  	  	 	3  	  	  	 	2  	  	
Net realized gains (losses) related to unconsolidated entities	  	 	-  	  	  	 	-  	  	  	 	-  	  	  	 	-  	  	  	 	-  	  	  	 	-  	  	  	 	-  	  	
Income tax expense on net realized gains (losses)	  	 	-  	  	  	 	-  	  	  	 	-  	  	  	 	-  	  	  	 	-  	  	  	 	-  	  	  	 	1  	  	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Net income (loss)	  	 $	48  	  	  	 $	57  	  	  	 $	19  	  	  	 $	(25) 	  	  	 $	(20) 	  	  	 $	99  	  	  	 $	64  	  	

Combined ratio	  				  				  				  				  				  				  				
Loss and loss expense ratio	  	 	77.2%  	  	  	 	83.7%  	  	  	 	84.4%  	  	  	 	124.6%  	  	  	 	106.3%  	  	  	 	85.2%  	  	  	 	90.9%  	  	
Policy acquisition cost ratio	  	 	3.6%  	  	  	 	5.4%  	  	  	 	7.0%  	  	  	 	4.5%  	  	  	 	-0.5%  	  	  	 	5.3%  	  	  	 	3.2%  	  	
Administrative expense ratio	  	 	1.0%  	  	  	 	0.4%  	  	  	 	0.4%  	  	  	 	1.2%  	  	  	 	-0.6%  	  	  	 	0.6%  	  	  	 	0.6%  	  	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Combined ratio	  	 	81.8%  	  	  	 	89.5%  	  	  	 	91.8%  	  	  	 	130.3%  	  	  	 	105.2%  	  	  	 	91.1%  	  	  	 	94.7%  	  	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Combined ratio excluding catastrophe losses and PPD	  	 	82.4%  	  	  	 	89.6%  	  	  	 	89.1%  	  	  	 	88.9%  	  	  	 	104.8%  	  	  	 	87.8%  	  	  	 	95.1%  	  	
								
Catastrophe reinstatement premiums - pre-tax	  	 $	-  	  	  	 $	-  	  	  	 $	-  	  	  	 $	-  	  	  	 $	-  	  	  	 $	-  	  	  	 $	-  	  	
Catastrophe losses - pre-tax	  	 $	1  	  	  	 $	2  	  	  	 $	9  	  	  	 $	1  	  	  	 $	2  	  	  	 $	13  	  	  	 $	7  	  	
Unfavorable (favorable) prior period development (PPD) - pre-tax  (3)	  	 $	(1) 	  	  	 $	(3) 	  	  	 $	-  	  	  	 $	38  	  	  	 $	-  	  	  	 $	34  	  	  	 $	(13) 	  	
Loss and loss expense ratio excluding catastrophe losses and PPD	  	 	77.9%  	  	  	 	83.8%  	  	  	 	81.8%  	  	  	 	78.3%  	  	  	 	105.8%  	  	  	 	81.8%  	  	  	 	91.3%  	  	
								
% Change versus prior year period	  				  				  				  				  				  				  				
Net premiums written	  	 	-5.0%  	  	  	 	-5.2%  	  	  	 	-14.2%  	  	  	 	72.1%  	  	  	 	203.6%  	  	  	 	-2.3%  	  	  	 	-12.5%  	  	
Net premiums earned	  	 	-23.4%  	  	  	 	-9.8%  	  	  	 	-5.7%  	  	  	 	96.8%  	  	  	 	62.3%  	  	  	 	-9.1%  	  	  	 	-10.4%  	  	
								
Other ratios	  				  				  				  				  				  				  				
Net premiums written/gross premiums written	  	 	81%  	  	  	 	62%  	  	  	 	65%  	  	  	 	83%  	  	  	 	118%  	  	  	 	67%  	  	  	 	61%  	  	
(1) (Gains) losses on crop derivatives are reclassified from Net realized gains (losses) for this presentation.
(2) We assess the performance of our Insurance – North American Agriculture segment based on underwriting income which includes (gains) losses on crop derivatives.
(3) For Q4 2014, favorable prior period development is net of $10 million of unfavorable net earned premium adjustments. For full year 2014, unfavorable prior period development is net of $25 million of favorable net earned premium adjustments and $1 million of favorable profit-sharing commissions.

Insurance - North American Agirculture	  	Page 8	

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

Insurance – Overseas General
																													
 	  	      4Q-14      	 	  	      3Q-14      	 	  	      2Q-14      	 	  	      1Q-14      	 	  	      4Q-13      	 	  	    Full Year    
2014	 	  	    Full Year    
2013	 	
								
Gross premiums written	  	  $	    2,212  	  	  	  $	    2,156  	  	  	  $	    2,224  	  	  	  $	     2,261  	  	  	  $	    2,126  	  	  	  $	 8,853  	  	  	  $	 8,314  	  	
Net premiums written	  	 	1,749  	  	  	 	1,719  	  	  	 	1,760  	  	  	 	1,771  	  	  	 	1,699  	  	  	 	6,999  	  	  	 	6,520  	  	
Net premiums earned	  	 	1,758  	  	  	 	1,726  	  	  	 	1,709  	  	  	 	1,612  	  	  	 	1,700  	  	  	 	6,805  	  	  	 	6,333  	  	
Losses and loss expenses	  	 	835  	  	  	 	707  	  	  	 	830  	  	  	 	817  	  	  	 	835  	  	  	 	3,189  	  	  	 	3,062  	  	
Policy acquisition costs	  	 	419  	  	  	 	418  	  	  	 	402  	  	  	 	386  	  	  	 	405  	  	  	 	1,625  	  	  	 	1,453  	  	
Administrative expenses	  	 	262  	  	  	 	258  	  	  	 	256  	  	  	 	250  	  	  	 	258  	  	  	 	1,026  	  	  	 	1,008  	  	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Underwriting income	  	 	242  	  	  	 	343  	  	  	 	221  	  	  	 	159  	  	  	 	202  	  	  	 	965  	  	  	 	810  	  	
								
Net investment income	  	 	147  	  	  	 	130  	  	  	 	136  	  	  	 	132  	  	  	 	143  	  	  	 	545  	  	  	 	539  	  	
Interest expense	  	 	2  	  	  	 	2  	  	  	 	1  	  	  	 	1  	  	  	 	1  	  	  	 	6  	  	  	 	5  	  	
Other income (expense) - operating	  	 	(15) 	  	  	 	(15) 	  	  	 	(17) 	  	  	 	(9) 	  	  	 	(13) 	  	  	 	(56) 	  	  	 	(48) 	  	
Income tax expense	  	 	78  	  	  	 	108  	  	  	 	57  	  	  	 	42  	  	  	 	52  	  	  	 	285  	  	  	 	202  	  	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Operating income	  	 	294  	  	  	 	348  	  	  	 	282  	  	  	 	239  	  	  	 	279  	  	  	 	1,163  	  	  	 	1,094  	  	
								
Net realized gains (losses)	  	 	(7) 	  	  	 	(75) 	  	  	 	14  	  	  	 	(10) 	  	  	 	(16) 	  	  	 	(78) 	  	  	 	18  	  	
Net realized gains (losses) related to unconsolidated entities	  	 	12  	  	  	 	9  	  	  	 	9  	  	  	 	15  	  	  	 	4  	  	  	 	45  	  	  	 	9  	  	
Income tax expense (benefit) on net realized gains (losses) (1)	  	 	111  	  	  	 	(11) 	  	  	 	(2)	  	  	 	(5) 	  	  	 	(4)	  	  	 	93  	  	  	 	20  	  	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Net income	  	  $	188  	  	  	  $	293  	  	  	  $	307  	  	  	  $	249  	  	  	  $	271  	  	  	  $	1,037  	  	  	  $	1,101  	  	

Combined ratio	  				  				  				  				  				  				  				
Loss and loss expense ratio	  	 	47.5% 	  	  	 	40.9% 	  	  	 	48.6% 	  	  	 	50.7% 	  	  	 	49.2% 	  	  	 	46.9% 	  	  	 	48.4% 	  	
Policy acquisition cost ratio	  	 	23.8% 	  	  	 	24.3% 	  	  	 	23.5% 	  	  	 	23.9% 	  	  	 	23.8% 	  	  	 	23.9% 	  	  	 	22.9% 	  	
Administrative expense ratio	  	 	15.0% 	  	  	 	14.9% 	  	  	 	15.0% 	  	  	 	15.5% 	  	  	 	15.1% 	  	  	 	15.0% 	  	  	 	15.9% 	  	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Combined ratio	  	 	86.3% 	  	  	 	80.1% 	  	  	 	87.1% 	  	  	 	90.1% 	  	  	 	88.1% 	  	  	 	85.8% 	  	  	 	87.2% 	  	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Combined ratio excluding catastrophe losses and PPD	  	 	89.4% 	  	  	 	90.5% 	  	  	 	89.3% 	  	  	 	90.5% 	  	  	 	91.6% 	  	  	 	89.9% 	  	  	 	90.5% 	  	
								
Catastrophe reinstatement premiums - pre-tax	  	  $	-  	  	  	  $	-  	  	  	  $	-  	  	  	  $	-  	  	  	  $	-  	  	  	  $	-  	  	  	  $	- 	  	
Catastrophe losses - pre-tax	  	  $	30  	  	  	  $	39  	  	  	  $	26  	  	  	  $	17  	  	  	  $	17  	  	  	  $	112  	  	  	  $	88 	  	
Favorable prior period development (PPD) - pre-tax (2)	  	  $	(86)	  	  	  $	 (219)	  	  	  $	(63)	  	  	  $	(23)	  	  	  $	(76)	  	  	  $	 (391)	  	  	  $	 (299)	  	
Loss and loss expense ratio excluding catastrophe losses and PPD	  	 	50.7% 	  	  	 	51.3% 	  	  	 	50.8% 	  	  	 	51.1% 	  	  	 	52.6% 	  	  	 	51.0% 	  	  	 	51.7% 	  	
								
% Change versus prior year period	  				  				  				  				  				  				  				
Net premiums written as reported	  	 	3.0% 	  	  	 	9.4% 	  	  	 	8.0% 	  	  	 	9.3% 	  	  	 	15.1% 	  	  	 	7.4% 	  	  	 	11.2% 	  	
Net premiums earned as reported	  	 	3.4% 	  	  	 	7.2% 	  	  	 	9.4% 	  	  	 	10.4% 	  	  	 	13.5% 	  	  	 	7.5% 	  	  	 	10.3% 	  	
								
Net premiums written constant $	  	 	8.4% 	  	  	 	8.1% 	  	  	 	8.8% 	  	  	 	12.3% 	  	  	 	18.2% 	  	  	 	9.4% 	  	  	 	13.7% 	  	
Net premiums earned constant $	  	 	8.8% 	  	  	 	6.0% 	  	  	 	9.8% 	  	  	 	14.6% 	  	  	 	16.5% 	  	  	 	9.6% 	  	  	 	12.7% 	  	
								
Other ratios	  				  				  				  				  				  				  				
Net premiums written/gross premiums written	  	 	79% 	  	  	 	80% 	  	  	 	79% 	  	  	 	78% 	  	  	 	80% 	  	  	 	79% 	  	  	 	78% 	  	
(1) Q4 2014 and full year 2014 include $115 million due to a deferred tax charge related to unrealized foreign exchange losses.
(2) For full year 2014, prior period development includes the favorable impact from the release of $52 million for an older liability case.

			
Insurance - Overseas General	  	Page 9	

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

 
																													
Global Reinsurance
 	  	    4Q-14    	 	  	    3Q-14    	 	  	    2Q-14    	 	  	    1Q-14    	 	  	    4Q-13    	 	  	    Full Year    
2014	 	  	    Full Year    
2013	 	
								
Gross premiums written	  	  $	140  	  	  	  $	213  	  	  	  $	308  	  	  	  $	333  	  	  	  $	154  	  	  	  $	994  	  	  	  $	1,057  	  	
Net premiums written	  	 	141  	  	  	 	208  	  	  	 	278  	  	  	 	308  	  	  	 	155  	  	  	 	935  	  	  	 	991  	  	
Net premiums earned	  	 	226  	  	  	 	255  	  	  	 	261  	  	  	 	284  	  	  	 	245  	  	  	 	1,026  	  	  	 	976  	  	
Losses and loss expenses	  	 	104  	  	  	 	92  	  	  	 	109  	  	  	 	126  	  	  	 	104  	  	  	 	431  	  	  	 	396  	  	
Policy acquisition costs	  	 	56  	  	  	 	74  	  	  	 	60  	  	  	 	67  	  	  	 	49  	  	  	 	257  	  	  	 	197  	  	
Administrative expenses	  	 	13  	  	  	 	13  	  	  	 	14  	  	  	 	14  	  	  	 	14  	  	  	 	54  	  	  	 	50  	  	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Underwriting income	  	 	53  	  	  	 	76  	  	  	 	78  	  	  	 	77  	  	  	 	78  	  	  	 	284  	  	  	 	333  	  	
								
Net investment income	  	 	78  	  	  	 	81  	  	  	 	80  	  	  	 	77  	  	  	 	71  	  	  	 	316  	  	  	 	280  	  	
Interest expense	  	 	-  	  	  	 	1  	  	  	 	2  	  	  	 	1  	  	  	 	1  	  	  	 	4  	  	  	 	5  	  	
Other income (expense) - operating	  	 	3  	  	  	 	-  	  	  	 	-  	  	  	 	1  	  	  	 	2  	  	  	 	4  	  	  	 	4  	  	
Income tax expense	  	 	7  	  	  	 	11  	  	  	 	10  	  	  	 	10  	  	  	 	5  	  	  	 	38  	  	  	 	36  	  	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Operating income	  	 	127  	  	  	 	145  	  	  	 	146  	  	  	 	144  	  	  	 	145  	  	  	 	562  	  	  	 	576  	  	
								
Net realized gains (losses)	  	 	(12) 	  	  	 	6  	  	  	 	(15) 	  	  	 	(8) 	  	  	 	7  	  	  	 	(29) 	  	  	 	53  	  	
Net realized gains (losses) related to unconsolidated entities	  	 	12  	  	  	 	10  	  	  	 	10  	  	  	 	18  	  	  	 	4  	  	  	 	50  	  	  	 	15  	  	
Income tax expense on net realized gains (losses)	  	 	-  	  	  	 	-  	  	  	 	-  	  	  	 	-  	  	  	 	-  	  	  	 	-  	  	  	 	-  	  	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Net income	  	  $	127  	  	  	  $	161  	  	  	  $	141  	  	  	  $	154  	  	  	  $	156  	  	  	  $	583  	  	  	  $	644  	  	

Combined ratio	  				  				  				  				  				  				  				
Loss and loss expense ratio	  	 	45.8% 	  	  	 	36.2% 	  	  	 	41.7% 	  	  	 	44.4% 	  	  	 	42.5% 	  	  	 	42.0% 	  	  	 	40.5% 	  	
Policy acquisition cost ratio	  	 	25.0% 	  	  	 	28.8% 	  	  	 	23.1% 	  	  	 	23.5% 	  	  	 	20.4% 	  	  	 	25.0% 	  	  	 	20.3% 	  	
Administrative expense ratio	  	 	5.7% 	  	  	 	5.2% 	  	  	 	5.1% 	  	  	 	5.0% 	  	  	 	5.5% 	  	  	 	5.3% 	  	  	 	5.1% 	  	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Combined ratio	  	 	76.5% 	  	  	 	70.2% 	  	  	 	69.9% 	  	  	 	72.9% 	  	  	 	68.4% 	  	  	 	72.3% 	  	  	 	65.9% 	  	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Combined ratio excluding catastrophe losses and PPD	  	 	76.2% 	  	  	 	75.7% 	  	  	 	75.4% 	  	  	 	75.1% 	  	  	 	73.6% 	  	  	 	75.6% 	  	  	 	70.9% 	  	
								
Catastrophe reinstatement premiums collected - pre-tax	  	  $	2  	  	  	  $	1  	  	  	  $	-  	  	  	  $	-  	  	  	  $	1 	  	  	  $	3  	  	  	  $	4  	  	
Catastrophe losses - pre-tax	  	  $	11  	  	  	  $	11  	  	  	  $	9  	  	  	  $	3  	  	  	  $	6 	  	  	  $	34  	  	  	  $	41  	  	
Favorable prior period development (PPD) -
pre-tax (1)	  	  $	(9)	  	  	  $	(21)	  	  	  $	(24)	  	  	  $	(9)	  	  	  $	(18)	  	  	  $	(63)	  	  	  $	(84)	  	
Loss and loss expense ratio excluding catastrophe losses and PPD	  	 	45.4% 	  	  	 	42.8% 	  	  	 	47.2% 	  	  	 	46.5% 	  	  	 	47.7% 	  	  	 	45.5% 	  	  	 	45.6% 	  	
								
% Change versus prior year period	  				  				  				  				  				  				  				
Net premiums written as reported	  	 	-9.4% 	  	  	 	-21.2% 	  	  	 	-4.9% 	  	  	 	10.3% 	  	  	 	5.5% 	  	  	 	-5.7% 	  	  	 	-3.3% 	  	
Net premiums earned as reported	  	 	-7.7% 	  	  	 	6.3% 	  	  	 	6.1% 	  	  	 	15.5% 	  	  	 	-3.7% 	  	  	 	5.1% 	  	  	 	-2.6% 	  	
								
Net premiums written constant $	  	 	-8.8% 	  	  	 	-21.8% 	  	  	 	-5.0% 	  	  	 	10.5% 	  	  	 	5.3% 	  	  	 	-5.8% 	  	  	 	-3.3% 	  	
Net premiums earned constant $	  	 	-7.1% 	  	  	 	5.7% 	  	  	 	5.5% 	  	  	 	15.4% 	  	  	 	-3.6% 	  	  	 	4.9% 	  	  	 	-2.5% 	  	
								
Other ratios	  				  				  				  				  				  				  				
Net premiums written/gross premiums written	  	 	100% 	  	  	 	98% 	  	  	 	90% 	  	  	 	92% 	  	  	 	101% 	  	  	 	94% 	  	  	 	94% 	  	
(1) For Q4 2014 and full year 2014, favorable prior period development is net of $1 million and $10 million, respectively, of net earned premium adjustments on loss sensitive policies.

			
Global Reinsurance	  	Page 10	

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

 
																													
Life	 	    4Q-14    	 	 	    3Q-14    	 	 	    2Q-14    	 	 	    1Q-14    	 	 	    4Q-13    	 	 	    Full Year    
2014	 	 	    Full Year    
2013	 	
								
Gross premiums written	 	 $	553  	  	 	 $	528  	  	 	 $	526  	  	 	 $	522  	  	 	 $	526  	  	 	 $	2,129  	  	 	 $	2,076  	  	
Net premiums written	 	 	523  	  	 	 	497  	  	 	 	498  	  	 	 	494  	  	 	 	504  	  	 	 	2,012  	  	 	 	1,972  	  	
Net premiums earned	 	 	499  	  	 	 	489  	  	 	 	490  	  	 	 	484  	  	 	 	481  	  	 	 	1,962  	  	 	 	1,905  	  	
Losses and loss expenses	 	 	147  	  	 	 	145  	  	 	 	146  	  	 	 	151  	  	 	 	139  	  	 	 	589  	  	 	 	582  	  	
Policy benefits (1)	 	 	134  	  	 	 	125  	  	 	 	144  	  	 	 	114  	  	 	 	136  	  	 	 	517  	  	 	 	515  	  	
(Gains) losses from fair value changes in separate account assets (1)	 	 	3  	  	 	 	6  	  	 	 	(17) 	  	 	 	6  	  	 	 	(9) 	  	 	 	(2) 	  	 	 	(16) 	  	
Policy acquisition costs	 	 	123  	  	 	 	123  	  	 	 	121  	  	 	 	111  	  	 	 	97  	  	 	 	478  	  	 	 	358  	  	
Administrative expenses	 	 	73  	  	 	 	71  	  	 	 	73  	  	 	 	68  	  	 	 	87  	  	 	 	285  	  	 	 	343  	  	
Net investment income	 	 	69  	  	 	 	69  	  	 	 	66  	  	 	 	64  	  	 	 	64  	  	 	 	268  	  	 	 	251  	  	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Life underwriting income (2)	 	 	88  	  	 	 	88  	  	 	 	89  	  	 	 	98  	  	 	 	95  	  	 	 	363  	  	 	 	374  	  	
								
Interest expense	 	 	1  	  	 	 	4  	  	 	 	3  	  	 	 	3  	  	 	 	3  	  	 	 	11  	  	 	 	15  	  	
Other income (expense) -
operating (1)	 	 	-    	  	 	 	(1) 	  	 	 	(2) 	  	 	 	(5) 	  	 	 	(4) 	  	 	 	(8) 	  	 	 	(18) 	  	
Income tax expense	 	 	11  	  	 	 	11  	  	 	 	12  	  	 	 	13  	  	 	 	2  	  	 	 	47  	  	 	 	34  	  	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Operating income	 	 	76  	  	 	 	72  	  	 	 	72  	  	 	 	77  	  	 	 	86  	  	 	 	297  	  	 	 	307  	  	
								
Net realized gains (losses):	 				 				 				 				 				 				 				
Mark-to-market on guaranteed living benefits derivative (net of related hedges)	 	 	(153) 	  	 	 	(95) 	  	 	 	(70) 	  	 	 	(67) 	  	 	 	149  	  	 	 	(385) 	  	 	 	299  	  	
Foreign exchange gains (losses) and all other	 	 	7  	  	 	 	6  	  	 	 	(2) 	  	 	 	(9) 	  	 	 	5  	  	 	 	2  	  	 	 	61  	  	
Net realized gains (losses) related to unconsolidated entities	 	 	6  	  	 	 	4  	  	 	 	(2) 	  	 	 	(2) 	  	 	 	(2) 	  	 	 	6  	  	 	 	5  	  	
Income tax expense (benefit) on net realized gains (losses)	 	 	1  	  	 	 	1  	  	 	 	-  	  	 	 	(3) 	  	 	 	(1) 	  	 	 	(1) 	  	 	 	-     	  	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income (loss)	 	  $	(65) 	  	 	  $	(14) 	  	 	  $	(2) 	  	 	  $	2  	  	 	  $	239  	  	 	  $	(79) 	  	 	  $	672	  	

% Change versus prior year period	 				 				 				 				 				 				 				
Net premiums written as reported	 	 	4.0% 	  	 	 	3.8% 	  	 	 	2.2% 	  	 	 	-1.6% 	  	 	 	-2.6% 	  	 	 	2.0% 	  	 	 	-0.4% 	  	
Net premiums earned as reported	 	 	3.6% 	  	 	 	4.8% 	  	 	 	2.2% 	  	 	 	1.3% 	  	 	 	-1.5% 	  	 	 	3.0% 	  	 	 	-0.6% 	  	
								
Net premiums written constant $ (3)	 	 	6.2% 	  	 	 	4.4% 	  	 	 	4.4% 	  	 	 	1.1% 	  	 	 	-1.4% 	  	 	 	4.0% 	  	 	 	0.2% 	  	
Net premiums earned constant $	 	 	5.9% 	  	 	 	5.4% 	  	 	 	4.2% 	  	 	 	4.0% 	  	 	 	-0.4% 	  	 	 	4.9% 	  	 	 	-0.1% 	  	
(1) (Gains) losses from fair value changes in separate account assets that do not qualify for separate account reporting under GAAP are reclassified from Other income (expense) for purposes of presenting Life underwriting income. The offsetting movement in the separate account liabilities is included in Policy benefits.
(2) We assess the performance of our Life business based on Life underwriting income which includes Net investment income and (Gains) losses from fair value changes in separate account assets.
(3) International life insurance net premiums written and deposits breakdown (excludes Combined North American and Life reinsurance businesses):

 	 	    4Q-14    	 	 	  Constant $  
4Q-13	 	 	Constant $
% Change
4Q-14 vs.
4Q-13	 	  	                	 	  Full Year  
2014	 	 	  Constant $  
Full Year
2013	 	 	  Constant $  
% Change
2014 vs.
2013	 	
International life insurance net premiums written	 	 $	202  	  	 	 $	172  	  	 	 	16.9% 	  	  		 	 $	750  	  	 	 $	650  	  	 	 	15.3% 	  	
International life insurance deposits (4)	 	 	215  	  	 	 	174  	  	 	 	24.1% 	  	  		 	 	823  	  	 	 	678  	  	 	 	21.4% 	  	
	 	 	 	 	 	 	 	 	 	 	 	 	  		 	 	 	 	 	 	 	 	 	 	 	 	
Total international life insurance net premiums written and deposits	 	 $	417  	  	 	 $	346  	  	 	 	20.5% 	  	  		 	 $	1,573  	  	 	 $	1,328  	  	 	 	18.4% 	  	

(4) Includes deposits collected on universal life and investment contracts. Consistent with GAAP, premiums collected on universal life and investment contracts are considered deposits and excluded from revenues.

Life	  	Page 11	

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

															
 	  	Unpaid Losses	 	  	Net Paid to
    Incurred Ratio    	
 	  	        Gross        	 	 	        Ceded        	 	 	            Net            	 	  		
	  	 	 	 	  	 	
Balance at December 31, 2012	  	  $	    37,946	  	 	  $	    11,399	  	 	  $	    26,547  	  	  		
Losses and loss expenses incurred	  	 	2,483	  	 	 	557	  	 	 	1,926  	  	  		
Losses and loss expenses paid	  	 	(2,987	) 	 	 	(932	) 	 	 	(2,055) 	  	  	107%	
Other (incl. foreign exch. revaluation)	  	 	(360	) 	 	 	(106	) 	 	 	(254) 	  	  		
	  	 	 	 	  		
Balance at March 31, 2013	  	  $	    37,082	  	 	  $	    10,918	  	 	  $	26,164  	  	  		
Losses and loss expenses incurred	  	 	3,007	  	 	 	757	  	 	 	2,250  	  	  		
Losses and loss expenses paid	  	 	(2,797	) 	 	 	(941	) 	 	 	(1,856) 	  	  	83%	
Other (incl. foreign exch. revaluation)	  	 	51	  	 	 	4	  	 	 	47  	  	  		
	  	 	 	 	  		
Balance at June 30, 2013	  	  $	    37,343	  	 	  $	10,738	  	 	  $	26,605  	  	  		
Losses and loss expenses incurred	  	 	3,617	  	 	 	962	  	 	 	2,655  	  	  		
Losses and loss expenses paid	  	 	(3,285	) 	 	 	(942	) 	 	 	(2,343) 	  	  	88%	
Other (incl. foreign exch. revaluation)	  	 	207	  	 	 	61	  	 	 	146  	  	  		
	  	 	 	 	  		
Balance at September 30, 2013	  	  $	    37,882	  	 	  $	10,819	  	 	  $	27,063  	  	  		
Losses and loss expenses incurred	  	 	3,322	  	 	 	805	  	 	 	2,517  	  	  		
Losses and loss expenses paid	  	 	(3,716	) 	 	 	(993	) 	 	 	(2,723) 	  	  	108%	
Other (incl. foreign exch. revaluation)	  	 	(45	) 	 	 	(19	) 	 	 	(26) 	  	  		
	  	 	 	 	  		
Balance at December 31, 2013	  	  $	    37,443	  	 	  $	10,612	  	 	  $	26,831  	  	  		
Losses and loss expenses incurred	  	 	2,462	  	 	 	301	  	 	 	2,161  	  	  		
Losses and loss expenses paid	  	 	(3,059	) 	 	 	(762	) 	 	 	(2,297) 	  	  	106%	
Other (incl. foreign exch. revaluation)	  	 	20	  	 	 	16	  	 	 	4  	  	  		
	  	 	 	 	  		
Balance at March 31, 2014	  	  $	    36,866	  	 	  $	10,167	  	 	  $	26,699  	  	  		
Losses and loss expenses incurred	  	 	3,004	  	 	 	616	  	 	 	2,388  	  	  		
Losses and loss expenses paid	  	 	(2,878	) 	 	 	(729	) 	 	 	(2,149) 	  	  	90%	
Other (incl. foreign exch. revaluation)	  	 	185	  	 	 	56	  	 	 	129  	  	  		
	  	 	 	 	  		
Balance at June 30, 2014	  	  $	    37,177	  	 	  $	10,110	  	 	  $	27,067  	  	  		
Losses and loss expenses incurred	  	 	3,840	  	 	 	1,156	  	 	 	2,684  	  	  		
Losses and loss expenses paid	  	 	(3,165	) 	 	 	(810	) 	 	 	(2,355) 	  	  	88%	
Other (incl. foreign exch. revaluation)	  	 	(405	) 	 	 	(120	) 	 	 	(285) 	  	  		
	  	 	 	 	  		
Balance at September 30, 2014	  	  $	    37,447	  	 	  $	10,336	  	 	  $	27,111  	  	  		
Losses and loss expenses incurred	  	 	3,442	  	 	 	1,026	  	 	 	2,416  	  	  		
Losses and loss expenses paid	  	 	(3,307	) 	 	 	(873	) 	 	 	(2,434) 	  	  	101%	
Other (incl. foreign exch. revaluation)	  	 	733	  	 	 	818	  	 	 	(85) 	  	  		
	  	 	 	 	  		
Balance at December 31, 2014	  	  $	    38,315	  	 	  $	11,307	  	 	  $	27,008  	  	  		

Add net recoverable on paid losses	  	 	-	  	 	 	685	  	 	 	(685) 	  	  		
	  	 	 	 	  		
Balance including net recoverable on paid losses	  	  $	    38,315	  	 	  $	11,992	  	 	  $	26,323  	  	  		

			
Loss Reserve Rollforward	  	Page 12	

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

Net Reinsurance Recoverable by Division

 	 	    December 31    	 	 	    September 30    	 	 	    June 30    	 	 	    March 31    	 	 	    December 31    	 	
 	 	2014	 	 	2014	 	 	2014	 	 	2014	 	 	2013	 	
						
Reinsurance recoverable on paid losses and loss expenses	 				 				 				 				 				
Active operations	 	  $	478  	  	 	  $	380  	  	 	  $	418  	  	 	  $	351  	  	 	  $	376  	  	
Brandywine and Other Run-off	 	 	313  	  	 	 	342  	  	 	 	353  	  	 	 	357  	  	 	 	356  	  	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total	 	  $	791  	  	 	  $	722  	  	 	  $	771  	  	 	  $	708  	  	 	  $	732  	  	

Reinsurance recoverable on unpaid losses and loss expenses (1)	 				 				 				 				 				
Active operations	 	  $	10,348  	  	 	  $	9,460  	  	 	  $	9,193  	  	 	  $	9,184  	  	 	  $	9,576  	  	
Brandywine and Other Run-off	 	 	1,210  	  	 	 	1,142  	  	 	 	1,192  	  	 	 	1,249  	  	 	 	1,309  	  	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total	 	  $	11,558  	  	 	  $	10,602  	  	 	  $	10,385  	  	 	  $	10,433  	  	 	  $	10,885  	  	

Gross reinsurance recoverable	 				 				 				 				 				
Active operations	 	  $	10,826  	  	 	  $	9,840  	  	 	  $	9,611  	  	 	  $	9,535  	  	 	  $	9,952  	  	
Brandywine and Other Run-off	 	 	1,523  	  	 	 	1,484  	  	 	 	1,545  	  	 	 	1,606  	  	 	 	1,665  	  	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total	 	  $	12,349  	  	 	  $	11,324  	  	 	  $	11,156  	  	 	  $	11,141  	  	 	  $	11,617  	  	

Provision for uncollectible reinsurance (2)	 				 				 				 				 				
Active operations	 	  $	(217) 	  	 	  $	(251) 	  	 	  $	(251) 	  	 	  $	(249) 	  	 	  $	(251) 	  	
Brandywine and Other Run-off	 	 	(140) 	  	 	 	(128) 	  	 	 	(137) 	  	 	 	(137) 	  	 	 	(139) 	  	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total	 	  $	(357) 	  	 	  $	(379) 	  	 	  $	(388) 	  	 	  $	(386) 	  	 	  $	(390) 	  	

Net reinsurance recoverable	 				 				 				 				 				
Active operations	 	  $	10,609  	  	 	  $	9,589  	  	 	  $	9,360  	  	 	  $	9,286  	  	 	  $	9,701  	  	
Brandywine and Other Run-off	 	 	1,383  	  	 	 	1,356  	  	 	 	1,408  	  	 	 	1,469  	  	 	 	1,526  	  	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total	 	  $	11,992  	  	 	  $	10,945  	  	 	  $	10,768  	  	 	  $	10,755  	  	 	  $	11,227  	  	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
(1) December 31, 2014 unpaid reinsurance recoverable balance includes $93 million reclassification of certain recoverables from Active operations to Brandywine and Other Run-off.
(2) The provision for uncollectible reinsurance is based on a default analysis applied to gross reinsurance recoverables, net of approximately $2.4 billion of collateral.

Reinsurance Recoverable	  	Page 13	

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

 	  	December 31
2014	 	  	September 30
2014	 	  	June 30
2014	 	  	March 31
2014	 	  	December 31
2013	 	
Market Value	  				  				  				  				  				  				  				  				  				  				
Fixed maturities available for sale	  	  $	49,395  	  	  				  	  $	49,148  	  	  				  	  $	51,601  	  	  				  	  $	49,611  	  	  				  	  $	49,254  	  	  				
Fixed maturities held to maturity	  	 	7,589  	  	  				  	 	7,763  	  	  				  	 	6,015  	  	  				  	 	6,080  	  	  				  	 	6,263  	  	  				
Short-term investments	  	 	2,322  	  	  				  	 	2,753  	  	  				  	 	2,108  	  	  				  	 	2,526  	  	  				  	 	1,763  	  	  				
	  	 	 	 	  				  	 	 	 	  				  	 	 	 	  				  	 	 	 	  				  	 	 	 	  				
Total fixed maturities	  	  $	59,306  	  	  				  	  $	59,664  	  	  				  	  $	59,724  	  	  				  	  $	58,217  	  	  				  	  $	57,280  	  	  				
	  	 	 	 	  				  	 	 	 	  				  	 	 	 	  				  	 	 	 	  				  	 	 	 	  				
Asset Allocation by Market Value	  				  				  				  				  				  				  				  				  				  				
Treasury	  	  $	2,448  	  	  	 	4%  	  	  	  $	2,223  	  	  	 	4%  	  	  	  $	2,386  	  	  	 	4%  	  	  	  $	2,411  	  	  	 	4%  	  	  	  $	2,327  	  	  	 	4%  	  	
Agency	  	 	1,222  	  	  	 	2%  	  	  	 	1,272  	  	  	 	2%  	  	  	 	1,278  	  	  	 	2%  	  	  	 	1,349  	  	  	 	2%  	  	  	 	1,454  	  	  	 	3%  	  	
Corporate and asset-backed	  	 	19,854  	  	  	 	34%  	  	  	 	19,863  	  	  	 	33%  	  	  	 	19,959  	  	  	 	33%  	  	  	 	19,650  	  	  	 	34%  	  	  	 	19,475  	  	  	 	34%  	  	
Mortgage-backed	  	 	12,325  	  	  	 	21%  	  	  	 	12,454  	  	  	 	21%  	  	  	 	12,659  	  	  	 	21%  	  	  	 	12,277  	  	  	 	21%  	  	  	 	12,273  	  	  	 	21%  	  	
Municipal	  	 	4,930  	  	  	 	8%  	  	  	 	4,890  	  	  	 	8%  	  	  	 	4,872  	  	  	 	8%  	  	  	 	4,599  	  	  	 	8%  	  	  	 	4,500  	  	  	 	8%  	  	
Non-U.S.	  	 	16,205  	  	  	 	27%  	  	  	 	16,209  	  	  	 	27%  	  	  	 	16,462  	  	  	 	28%  	  	  	 	15,405  	  	  	 	27%  	  	  	 	15,488  	  	  	 	27%  	  	
Short-term investments	  	 	2,322  	  	  	 	4%  	  	  	 	2,753  	  	  	 	5%  	  	  	 	2,108  	  	  	 	4%  	  	  	 	2,526  	  	  	 	4%  	  	  	 	1,763  	  	  	 	3%  	  	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total fixed maturities	  	  $	59,306  	  	  	 	100%  	  	  	  $	59,664  	  	  	 	100%  	  	  	  $	59,724  	  	  	 	100%  	  	  	  $	58,217  	  	  	 	100%  	  	  	  $	57,280  	  	  	 	100%  	  	

Credit Quality by Market Value	  				  				  				  				  				  				  				  				  				  				
AAA	  	  $	8,943  	  	  	 	15%  	  	  	  $	9,105  	  	  	 	15%  	  	  	  $	9,073  	  	  	 	15%  	  	  	  $	9,410  	  	  	 	16%  	  	  	  $	8,677  	  	  	 	15%  	  	
AA	  	 	21,589  	  	  	 	36%  	  	  	 	21,783  	  	  	 	37%  	  	  	 	22,470  	  	  	 	38%  	  	  	 	21,652  	  	  	 	37%  	  	  	 	21,520  	  	  	 	38%  	  	
A	  	 	11,625  	  	  	 	20%  	  	  	 	11,640  	  	  	 	19%  	  	  	 	11,400  	  	  	 	19%  	  	  	 	11,112  	  	  	 	19%  	  	  	 	11,168  	  	  	 	19%  	  	
BBB	  	 	8,690  	  	  	 	15%  	  	  	 	8,397  	  	  	 	14%  	  	  	 	7,996  	  	  	 	13%  	  	  	 	7,306  	  	  	 	12%  	  	  	 	7,193  	  	  	 	12%  	  	
BB	  	 	4,372  	  	  	 	7%  	  	  	 	4,607  	  	  	 	8%  	  	  	 	4,435  	  	  	 	7%  	  	  	 	4,451  	  	  	 	8%  	  	  	 	4,418  	  	  	 	8%  	  	
B	  	 	3,916  	  	  	 	7%  	  	  	 	3,939  	  	  	 	7%  	  	  	 	4,126  	  	  	 	7%  	  	  	 	3,965  	  	  	 	7%  	  	  	 	3,940  	  	  	 	7%  	  	
Other	  	 	171  	  	  	 	0%  	  	  	 	193  	  	  	 	0%  	  	  	 	224  	  	  	 	1%  	  	  	 	321  	  	  	 	1%  	  	  	 	364  	  	  	 	1%  	  	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total fixed maturities	  	  $	59,306  	  	  	 	100%  	  	  	  $	59,664  	  	  	 	100%  	  	  	  $	59,724  	  	  	 	100%  	  	  	  $	58,217  	  	  	 	100%  	  	  	  $	57,280  	  	  	 	100%  	  	

Cost/Amortized Cost	  				  				  				  				  				  				  				  				  				  				
Fixed maturities available for sale	  	  $	47,826  	  	  				  	  $	47,688  	  	  				  	  $	49,719  	  	  				  	  $	48,282  	  	  				  	  $	48,406  	  	  				
Fixed maturities held to maturity	  	 	7,331  	  	  				  	 	7,548  	  	  				  	 	5,774  	  	  				  	 	5,887  	  	  				  	 	6,098  	  	  				
Short-term investments	  	 	2,322  	  	  				  	 	2,753  	  	  				  	 	2,108  	  	  				  	 	2,526  	  	  				  	 	1,763  	  	  				
	  	 	 	 	  				  	 	 	 	  				  	 	 	 	  				  	 	 	 	  				  	 	 	 	  				
Subtotal fixed maturities	  	 	57,479  	  	  				  	 	57,989  	  	  				  	 	57,601  	  	  				  	 	56,695  	  	  				  	 	56,267  	  	  				
Equity securities	  	 	440  	  	  				  	 	480  	  	  				  	 	874  	  	  				  	 	845  	  	  				  	 	841  	  	  				
Other investments	  	 	2,999  	  	  				  	 	2,910  	  	  				  	 	2,876  	  	  				  	 	2,823  	  	  				  	 	2,671  	  	  				
	  	 	 	 	  				  	 	 	 	  				  	 	 	 	  				  	 	 	 	  				  	 	 	 	  				
Total investment portfolio	  	  $	60,918  	  	  				  	  $	61,379  	  	  				  	  $	61,351  	  	  				  	  $	60,363  	  	  				  	  $	59,779  	  	  				

Avg. duration of fixed maturities	  	 	4.0 years	  	  				  	 	4.1 years	  	  				  	 	4.0 years	  	  				  	 	4.0 years	  	  				  	 	4.0 years	  	  				
Avg. market yield of fixed maturities	  	 	2.8%	  	  				  	 	2.8%	  	  				  	 	2.6%	  	  				  	 	2.8%	  	  				  	 	3.0%	  	  				
Avg. credit quality	  	 	A/Aa	  	  				  	 	A/Aa	  	  				  	 	A/Aa	  	  				  	 	A/Aa	  	  				  	 	A/Aa	  	  				
Avg. yield on invested assets	  	 	3.8%	  	  				  	 	3.7%	  	  				  	 	3.7%	  	  				  	 	3.7%	  	  				  	 	3.8%	  	  				

Investments	  	Page 14	

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

 	  	S&P Credit Rating	 	
 	  	      AAA      	 	  	AA	 	  	A	 	  	BBB	 	  	BB and below	 	  	Total	 	
	  	 	 	 	
Market Value at December 31, 2014	  				  				  				  				  				  				
Agency residential mortgage-backed (RMBS)	  	 $	        -	  	  	$	        10,216	  	  	$	        -	  	  	$	        -	  	  	$	        -	  	  	$	        10,216 	  	
Non-agency RMBS	  	 	35	  	  	 	5	  	  	 	18	  	  	 	12	  	  	 	15	  	  	 	85 	  	
Commercial mortgage-backed	  	 	1,995	  	  	 	14	  	  	 	12	  	  	 	3	  	  	 	-	  	  	 	2,024 	  	
	  	 	 	 	
Total mortgage-backed securities at market value	  	 $	2,030	  	  	$	10,235	  	  	$	30	  	  	$	15	  	  	$	15	  	  	$	12,325 	  	

U.S. Corporate and Asset-backed Fixed Income Portfolios	  	 	 	  	 	 	
			
Market Value at December 31, 2014	  	S&P Credit Rating	 	  	 	 	
 	  	Investment Grade	 	  	 	 	
 	  	AAA	 	  	AA	 	  	A	 	  	BBB	 	  	Total	 	  	 	 	

Asset-backed	  	 $	        498	  	  	$	        73	  	  	$	        -	  	  	$	        -	  	  	$	        571 	  	  				
Banks	  	 	-	  	  	 	3	  	  	 	2,140	  	  	 	300	  	  	 	2,443 	  	  				
Basic Materials	  	 	-	  	  	 	3	  	  	 	97	  	  	 	332	  	  	 	432 	  	  				
Communications	  	 	-	  	  	 	47	  	  	 	499	  	  	 	784	  	  	 	1,330 	  	  				
Consumer, Cyclical	  	 	-	  	  	 	124	  	  	 	356	  	  	 	470	  	  	 	950 	  	  				
Consumer, Non-Cyclical	  	 	58	  	  	 	613	  	  	 	1,012	  	  	 	714	  	  	 	2,397 	  	  				
Diversified Financial Services	  	 	-	  	  	 	45	  	  	 	294	  	  	 	114	  	  	 	453 	  	  				
Energy	  	 	31	  	  	 	35	  	  	 	173	  	  	 	829	  	  	 	1,068 	  	  				
Industrial	  	 	-	  	  	 	345	  	  	 	443	  	  	 	367	  	  	 	1,155 	  	  				
Utilities	  	 	-	  	  	 	10	  	  	 	631	  	  	 	430	  	  	 	1,071 	  	  				
All Others	  	 	64	  	  	 	137	  	  	 	562	  	  	 	596	  	  	 	1,359 	  	  				
	  	 	 	 	  				
Total	  	 $	651	  	  	$	1,435	  	  	$	6,207	  	  	$	4,936	  	  	$	13,229 	  	  				

Market Value at December 31, 2014	  	 	 	  	S&P Credit Rating	 	  	 	 	
 	  	 	 	  	Below Investment Grade	 	  	 	 	
 	  	 	 	  	BB	 	  	B	 	  	CCC	 	  	Total	 	  	 	 	

Asset-backed	  				  	 $	        -	  	  	$	        3	  	  	$	        11	  	  	$	        14 	  	  				
Banks	  				  	 	1	  	  	 	6	  	  	 	-	  	  	 	7 	  	  				
Basic Materials	  				  	 	129	  	  	 	123	  	  	 	6	  	  	 	258 	  	  				
Communications	  				  	 	556	  	  	 	536	  	  	 	7	  	  	 	1,099 	  	  				
Consumer, Cyclical	  				  	 	466	  	  	 	591	  	  	 	23	  	  	 	1,080 	  	  				
Consumer, Non-Cyclical	  				  	 	511	  	  	 	873	  	  	 	22	  	  	 	1,406 	  	  				
Diversified Financial Services	  				  	 	120	  	  	 	65	  	  	 	3	  	  	 	188 	  	  				
Energy	  				  	 	635	  	  	 	257	  	  	 	19	  	  	 	911 	  	  				
Industrial	  				  	 	344	  	  	 	370	  	  	 	7	  	  	 	721 	  	  				
Utilities	  				  	 	229	  	  	 	50	  	  	 	-	  	  	 	279 	  	  				
All Others	  				  	 	327	  	  	 	323	  	  	 	12	  	  	 	662 	  	  				
	  				  	 	 	 	  				
Total	  				  	 $	3,318	  	  	$	3,197	  	  	$	110	  	  	$	6,625 	  	  				

			
Investments 2	  	Page 15	

					
	  	ACE Limited
 
Investment Portfolio - 3
 
(in millions of U.S. dollars)
 
(Unaudited)	  		
 
Non-U.S. Fixed Income Portfolio
December 31, 2014

Non-U.S. Government Securities	  	Market Value by S&P Credit Rating	 	
 	  	AAA	 	  	AA	 	  	A	 	  	BBB	 	  	BB and below	 	  	Total	 	

United Kingdom	  	  $	1,119	  	  	$	-	  	  	$	-	  	  	$	-	  	  	$	-	  	  	$	1,119  	  	
Republic of Korea	  	 	-	  	  	 	746	  	  	 	44	  	  	 	-	  	  	 	-	  	  	 	790  	  	
Federative Republic of Brazil	  	 	-	  	  	 	-	  	  	 	-	  	  	 	660	  	  	 	-	  	  	 	660  	  	
United Mexican States	  	 	-	  	  	 	-	  	  	 	374	  	  	 	135	  	  	 	-	  	  	 	509  	  	
Canada	  	 	483	  	  	 	-	  	  	 	-	  	  	 	-	  	  	 	-	  	  	 	483  	  	
Kingdom of Thailand	  	 	-	  	  	 	-	  	  	 	407	  	  	 	-	  	  	 	-	  	  	 	407  	  	
Province of Ontario	  	 	-	  	  	 	373	  	  	 	-	  	  	 	-	  	  	 	-	  	  	 	373  	  	
Province of Quebec	  	 	-	  	  	 	-	  	  	 	263	  	  	 	-	  	  	 	-	  	  	 	263  	  	
Japan	  	 	-	  	  	 	243	  	  	 	-	  	  	 	-	  	  	 	-	  	  	 	243  	  	
Germany	  	 	200	  	  	 	-	  	  	 	-	  	  	 	-	  	  	 	-	  	  	 	200  	  	
Other Non-U.S. Government Securities	  	 	617	  	  	 	972	  	  	 	314	  	  	 	415	  	  	 	470	  	  	 	2,788  	  	
	  	 	 	 	
Total	  	  $	        2,419	  	  	$	        2,334	  	  	$	        1,402	  	  	$	        1,210	  	  	$	470	  	  	$	        7,835  	  	

Non-U.S. Corporate Securities	  	Market Value by S&P Credit Rating	 	
 	  	AAA	 	  	AA	 	  	A	 	  	BBB	 	  	BB and below	 	  	Total	 	

United Kingdom	  	  $	129	  	  	$	59	  	  	$	715	  	  	$	506	  	  	$	212	  	  	$	1,621  	  	
Canada	  	 	127	  	  	 	118	  	  	 	286	  	  	 	379	  	  	 	137	  	  	 	1,047  	  	
United States	  	 	2	  	  	 	88	  	  	 	92	  	  	 	215	  	  	 	169	  	  	 	566  	  	
Australia	  	 	84	  	  	 	99	  	  	 	225	  	  	 	88	  	  	 	46	  	  	 	542  	  	
Netherlands	  	 	29	  	  	 	148	  	  	 	173	  	  	 	136	  	  	 	32	  	  	 	518  	  	
France	  	 	47	  	  	 	51	  	  	 	209	  	  	 	140	  	  	 	61	  	  	 	508  	  	
Germany	  	 	122	  	  	 	19	  	  	 	140	  	  	 	106	  	  	 	33	  	  	 	420  	  	
Switzerland	  	 	47	  	  	 	16	  	  	 	72	  	  	 	90	  	  	 	66	  	  	 	291  	  	
Euro Supranational	  	 	212	  	  	 	45	  	  	 	-	  	  	 	-	  	  	 	-	  	  	 	257  	  	
China	  	 	-	  	  	 	148	  	  	 	64	  	  	 	26	  	  	 	9	  	  	 	247  	  	
Other Non-U.S. Corporate Securities	  	 	112	  	  	 	224	  	  	 	933	  	  	 	641	  	  	 	443	  	  	 	2,353  	  	
	  	 	 	 	
Total	  	  $	911	  	  	$	1,015	  	  	$	2,909	  	  	$	2,327	  	  	$	1,208	  	  	$	8,370  	  	
	  	 	 	 	
Non-U.S. Corporate Investment Portfolio
Countries represent the ultimate parent company’s country of risk. Non-U.S. corporate securities could be issued by foreign subsidiaries of U.S. corporations.

Investments 3	  	Page 16	

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

 	 	December 31, 2014	  	    Market Value    	  	Rating    	
	 	 	  	 	
  1	 	JP Morgan Chase & Co	  	  $                447	  	A	
  2	 	General Electric Co	  	                    419	  	AA+	
  3	 	Goldman Sachs Group Inc	  	                    347	  	A-	
  4	 	Wells Fargo & Co	  	                    270	  	A+	
  5	 	HSBC Holdings Plc	  	                    265	  	A+	
  6	 	Verizon Communications Inc	  	                    233	  	BBB+	
  7	 	Bank of America Corp	  	                    231	  	A-	
  8	 	Morgan Stanley	  	                    217	  	A-	
  9	 	AT&T Inc	  	                    216	  	A-	
10	 	Citigroup Inc	  	                    206	  	A-	

Investments 4	  	Page 17	

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

 	  	Three months ended December 31, 2014	 	  	 	 	Year ended December 31, 2014	 	
 	  	 Net Realized 
 
Gains
 
(Losses)  (1)	 	 	Net Unrealized
 
Gains
 
(Losses)	 	 	        Net        
 
        Impact        	 	  	 	 	 Net Realized 
 
Gains
 
(Losses) (1)	 	 	Net Unrealized
 
Gains
 
(Losses)	 	 	Net
 
        Impact        	 	
	  	 	 	 	  		 	 	 	 	
Fixed maturities	  	 $	(26	) 	 	$	94	  	 	$	68  	  	  		 	 $	23	  	 	$	732	  	 	$	755  	  	
Fixed income derivatives	  	 	(54	) 	 	 	-	  	 	 	(54) 	  	  		 	 	(107	) 	 	 	-	  	 	 	(107) 	  	
	  	 	 	 	  		 	 	 	 	
Total fixed maturities	  	 	(80	) 	 	 	94	  	 	 	14  	  	  		 	 	(84	) 	 	 	732	  	 	 	648  	  	
	  	 	 	 	  		 	 	 	 	
Public equity	  	 	13	  	 	 	7	  	 	 	20  	  	  		 	 	(47	) 	 	 	77	  	 	 	30  	  	
Private equity	  	 	44	  	 	 	(1	) 	 	 	43  	  	  		 	 	187	  	 	 	42	  	 	 	229  	  	
	  	 	 	 	  		 	 	 	 	
Total equity	  	 	57	  	 	 	6	  	 	 	63  	  	  		 	 	140	  	 	 	119	  	 	 	259  	  	
	  	 	 	 	  		 	 	 	 	
Mark-to-market losses from derivative transactions  (2)	  	 	(155	) 	 	 	-	  	 	 	(155) 	  	  		 	 	(386	) 	 	 	-	  	 	 	(386) 	  	
Foreign exchange gains (losses) (2)	  	 	2	  	 	 	-	  	 	 	2  	  	  		 	 	(40	) 	 	 	-	  	 	 	(40) 	  	
Other	  	 	10	  	 	 	-	  	 	 	10  	  	  		 	 	2	  	 	 	-	  	 	 	2  	  	
Partially-owned entities (3)	  	 	5	  	 	 	-	  	 	 	5  	  	  		 	 	1	  	 	 	(7	) 	 	 	(6) 	  	
Income tax expense (4)	  	 	111	  	 	 	6	  	 	 	117  	  	  		 	 	100	  	 	 	167	  	 	 	267  	  	
	  	 	 	 	  		 	 	 	 	
Net gains (losses)	  	 $	(272	) 	 	$	94	  	 	$	(178) 	  	  		 	 $	(467	) 	 	$	677	  	 	$	210  	  	
	  	 	 	 	  		 	 	 	 	
(1) Other-than-temporary impairments for the quarter includes $40 million for fixed maturities and $1 million for public equity. Year to date other-than-temporary impairments includes $57 million for fixed maturities, $3 million for private equity, and $8 million for public equity.
(2) Includes $153 million of realized losses from variable annuity reinsurance for the quarter which comprises $91 million in mark-to-market losses from derivative transactions and $62 million of losses on applicable hedges. The variable annuity reinsurance foreign exchange gains for the quarter were $2 million. For the year, the $385 million of realized losses from variable annuity reinsurance comprises $217 million in mark-to-market losses from derivative transactions and $168 million of losses on applicable hedges. The variable annuity reinsurance foreign exchange gains for the year were $4 million.
(3) Partially-owned entities are investments where we hold more than an insignificant percentage of the investee’s shares. The net income or loss is included in other income (expense).
(4) Q4 2014 and full year 2014 include $115 million due to a realized deferred tax charge related to unrealized foreign exchange losses.

 	  	Three months ended December 31, 2013	 	  	 	 	Year ended December 31, 2013	 	
 	  	 Net Realized 
 
Gains
 
(Losses)  (5)	 	 	Net Unrealized
 
Gains
 
(Losses)	 	 	Net
 
        Impact        	 	  	 	 	 Net Realized 
 
Gains
 
(Losses) (5)	 	 	Net Unrealized
 
Gains
 
(Losses)	 	 	Net
 
        Impact        	 	
	  	 	 	 	  		 	 	 	 	
Fixed maturities	  	 $	6	  	 	$	(219	) 	 	$	(213) 	  	  		 	 $	90	  	 	$	(1,880	) 	 	$	(1,790) 	  	
Fixed income derivatives	  	 	16	  	 	 	-	  	 	 	16  	  	  		 	 	78	  	 	 	-	  	 	 	78  	  	
	  	 	 	 	  		 	 	 	 	
Total fixed maturities	  	 	22	  	 	 	(219	) 	 	 	(197) 	  	  		 	 	168	  	 	 	(1,880	) 	 	 	(1,712) 	  	
	  	 	 	 	  		 	 	 	 	
Public equity	  	 	2	  	 	 	-	  	 	 	2  	  	  		 	 	15	  	 	 	(41	) 	 	 	(26) 	  	
Private equity	  	 	27	  	 	 	17	  	 	 	44  	  	  		 	 	90	  	 	 	51	  	 	 	141  	  	
	  	 	 	 	  		 	 	 	 	
Total equity	  	 	29	  	 	 	17	  	 	 	46  	  	  		 	 	105	  	 	 	10	  	 	 	115  	  	
	  	 	 	 	  		 	 	 	 	
Mark-to-market gains from derivative transactions (6)	  	 	149	  	 	 	-	  	 	 	149  	  	  		 	 	298	  	 	 	-	  	 	 	298  	  	
Foreign exchange gains (losses) (6)	  	 	(16	) 	 	 	-	  	 	 	(16) 	  	  		 	 	29	  	 	 	-	  	 	 	29  	  	
Other	  	 	(3	) 	 	 	2	  	 	 	(1) 	  	  		 	 	(3	) 	 	 	3	  	 	 	-  	  	
Partially-owned entities (7)	  	 	(2	) 	 	 	-	  	 	 	(2) 	  	  		 	 	-	  	 	 	-	  	 	 	-  	  	
Income tax expense (benefit)	  	 	5	  	 	 	(55	) 	 	 	(50) 	  	  		 	 	56	  	 	 	(408	) 	 	 	(352) 	  	
	  	 	 	 	  		 	 	 	 	
Net gains (losses)	  	 $	174	  	 	$	(145	) 	 	$	29  	  	  		 	 $	541	  	 	$	(1,459	) 	 	$	(918) 	  	
	  	 	 	 	  		 	 	 	 	
(5) Other-than-temporary impairments for the quarter includes $7 million for fixed maturities and $1 million for public equity. Year to date other-than-temporary impairments includes $18 million of fixed maturities, $2 million for private equity, and $2 million for public equity.
(6) Includes $149 million of realized gains from variable annuity reinsurance for the quarter which comprises $315 million in mark-to-market gains from derivative transactions (including a $92 million realized gain related to an out-of-period adjustment for an error in a market valuation model), net of $166 million of losses on applicable hedges. The variable annuity reinsurance foreign exchange gains for the quarter were $6 million. For the year, mark-to-market gains from derivative transactions of $298 million includes $299 million of realized gains from variable annuity reinsurance which comprises $878 million in mark-to-market gains from derivative transactions, net of $579 million of losses on applicable hedges. The variable annuity reinsurance foreign exchange gains for the year were $51 million.
(7) Partially-owned entities are investments where we hold more than an insignificant percentage of the investee’s shares. The net income or loss is included in other income (expense).

Investment Gains (Losses)	  	Page 18	

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

 	 	December 31
          2014          	 	 	September 30
          2014          	 	 	June 30
          2014          	 	 	March 31
          2014          	 	 	December 31
          2013           	 	 	December 31
          2012           	 	
							
Total short-term
debt  (1) (2)	 	 $	2,552 	  	 	 $	1,851 	  	 	 $	1,851 	  	 	 $	1,901 	  	 	 $	1,901 	  	 	 $	1,401 	  	
Total long-term debt	 	 	3,357 	  	 	 	4,057 	  	 	 	4,057 	  	 	 	3,808 	  	 	 	3,807 	  	 	 	3,360 	  	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total debt	 	 $	5,909 	  	 	 $	5,908 	  	 	 $	5,908 	  	 	 $	5,709 	  	 	 $	5,708 	  	 	 $	4,761 	  	

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

Total shareholders’ equity	 	 $	29,587 	  	 	 $	30,017 	  	 	 $	30,325 	  	 	 $	29,369 	  	 	 $	28,825 	  	 	 $	27,531 	  	

Total capitalization	 	 $	35,805 	  	 	 $	36,234 	  	 	 $	36,542 	  	 	 $	35,387 	  	 	 $	34,842 	  	 	 $	32,601 	  	
Tangible capital (3)	 	 $	30,081 	  	 	 $	30,809 	  	 	 $	31,020 	  	 	 $	30,005 	  	 	 $	29,438 	  	 	 $	27,626 	  	
							
Leverage ratios	 				 				 				 				 				 				
Debt/ total capitalization	 	 	16.5%	  	 	 	16.3%	  	 	 	16.2%	  	 	 	16.1%	  	 	 	16.4%	  	 	 	14.6%	  	
Debt plus trust preferred securities/ total capitalization	 	 	17.4%	  	 	 	17.2%	  	 	 	17.0%	  	 	 	17.0%	  	 	 	17.3%	  	 	 	15.6%	  	
Debt/ tangible capital	 	 	19.6%	  	 	 	19.2%	  	 	 	19.0%	  	 	 	19.0%	  	 	 	19.4%	  	 	 	17.2%	  	
Debt plus trust preferred securities/ tangible capital	 	 	20.7%	  	 	 	20.2%	  	 	 	20.0%	  	 	 	20.1%	  	 	 	20.4%	  	 	 	18.4%	  	
Note: As of December 31, 2014, there was $0.5 billion usage of credit facilities on a total commitment of $1.0 billion. We did not renew our $425 million funds at Lloyd’s capital facilities in December 2014. We elected instead to satisfy our collateral obligations primarily with insurance trusts supported by our investment portfolio.
(1) Repurchase agreements in the amount of $150 million matured during the quarter, and there were new repurchase agreements in the amount of $151 million.
(2) In November 2014, we reclassified $700 million of 2.6 percent senior notes, due to mature in less than one year (November 2015), from Long-term debt to Short-term debt.
(3) Tangible capital is equal to total capitalization less goodwill and other intangible assets.

			
Capital Structure	  	Page 19	

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

 	 	      Three months ended December 31      	 	 	              Year ended December 31          	 	
 	 	    2014    	 	 	     2013    	 	 	    2014    	 	 	    2013    	 	
	 	 	 	 	 	 	 	 	
Numerator	 				 				 				 				
Operating income to common shares	 	  $	827  	  	 	  $	824  	  	 	  $	3,320  	  	 	  $	3,217  	  	
Adjusted net realized gains (losses), net of income tax	 	 	(272) 	  	 	 	174  	  	 	 	(467) 	  	 	 	541  	  	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income	 	  $	555  	  	 	  $	998  	  	 	  $	2,853  	  	 	  $	3,758  	  	

Rollforward of Common Shares Outstanding	 				 				 				 				
Shares - beginning of period	 	 	332,111,557  	  	 	 	340,069,972  	  	 	 	339,793,935  	  	 	 	340,321,534  	  	
Repurchase of shares (1)	 	 	(3,839,174) 	  	 	 	(564,911) 	  	 	 	(13,982,358) 	  	 	 	(3,266,531) 	  	
Shares issued, excluding option exercises	 	 	66,123  	  	 	 	12,988  	  	 	 	1,336,161  	  	 	 	1,080,261  	  	
Issued for option exercises	 	 	321,180  	  	 	 	275,886  	  	 	 	1,511,948  	  	 	 	1,658,671  	  	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Shares - end of period	 	 	328,659,686  	  	 	 	339,793,935  	  	 	 	328,659,686  	  	 	 	339,793,935  	  	

Denominator	 				 				 				 				
Weighted average shares outstanding	 	 	331,124,128  	  	 	 	340,897,890  	  	 	 	335,609,899  	  	 	 	340,906,490  	  	
Effect of other dilutive securities	 	 	3,464,261  	  	 	 	3,309,307  	  	 	 	3,376,388  	  	 	 	3,241,085  	  	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Adj. wtd. avg. shares outstanding and assumed conversions	 	 	334,588,389  	  	 	 	344,207,197  	  	 	 	338,986,287  	  	 	 	344,147,575  	  	

Basic earnings per share	 				 				 				 				
Operating income	 	  $	2.50  	  	 	  $	2.41  	  	 	  $	9.89  	  	 	  $	9.43  	  	
Adjusted net realized gains (losses), net of income tax	 	 	(0.82) 	  	 	 	0.52  	  	 	 	(1.39) 	  	 	 	1.59  	  	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income	 	  $	1.68  	  	 	  $	2.93  	  	 	  $	8.50  	  	 	  $	11.02  	  	

Diluted earnings per share	 				 				 				 				
Operating income	 	  $	2.47  	  	 	  $	2.39  	  	 	  $	9.79  	  	 	  $	9.35  	  	
Adjusted net realized gains (losses), net of income tax	 	 	(0.81) 	  	 	 	0.51  	  	 	 	(1.37) 	  	 	 	1.57  	  	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income	 	  $	1.66  	  	 	  $	2.90  	  	 	  $	8.42  	  	 	  $	10.92  	  	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
(1) For the period January 1, 2015 through January 26, 2015 we repurchased 750 thousand shares totaling $84 million, pursuant to a plan adopted under SEC Rule 10b5-1 and in accordance with the provisions of SEC Rule 10b-18.

Earnings per share	  	Page 20	

					
	  	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
          2014          	 	 	September 30
          2014          	 	 	June 30
          2014          	 	 	March 31
          2014          	 	 	December 31
          2013          	 	
						
Shareholders’ equity	  	 $	29,587  	  	 	 $	30,017  	  	 	 $	30,325  	  	 	 $	29,369  	  	 	 $	28,825  	  	
Less: goodwill and other intangible assets	  	 	5,724  	  	 	 	5,425  	  	 	 	5,522  	  	 	 	5,382  	  	 	 	5,404  	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Numerator for tangible book value per share	  	 $	23,863  	  	 	 $	24,592  	  	 	 $	24,803  	  	 	 $	23,987  	  	 	 $	23,421  	  	

Book value - % change over prior quarter (1)	  	 	-1.4% 	  	 	 	-1.0% 	  	 	 	3.3% 	  	 	 	1.9% 	  	 	 	2.2% 	  	
Tangible book value - % change over prior quarter  (1)	  	 	-3.0% 	  	 	 	-0.8% 	  	 	 	3.4% 	  	 	 	2.4% 	  	 	 	2.9% 	  	
						
Denominator	  	 	328,659,686  	  	 	 	332,111,557  	  	 	 	336,225,589  	  	 	 	337,974,644  	  	 	 	339,793,935  	  	

Book value per common share	  	 $	90.02  	  	 	 $	90.38  	  	 	 $	90.19  	  	 	 $	86.90  	  	 	 $	84.83  	  	
Tangible book value per common share	  	 $	72.61  	  	 	 $	74.05  	  	 	 $	73.77  	  	 	 $	70.97  	  	 	 $	68.93  	  	
						
Reconciliation of Book Value	  				 				 				 				 				
						
Shareholders’ equity, beginning of quarter	  	 $	30,017  	  	 	 $	30,325  	  	 	 $	29,369  	  	 	 $	28,825  	  	 	 $	28,218  	  	
Operating income	  	 	827  	  	 	 	891  	  	 	 	825  	  	 	 	777  	  	 	 	824  	  	
Adjusted net realized gains (losses), net of tax	  	 	(272) 	  	 	 	(106) 	  	 	 	(46) 	  	 	 	(43) 	  	 	 	174  	  	
Net unrealized gains (losses), net of tax	  	 	94  	  	 	 	(290) 	  	 	 	453  	  	 	 	420  	  	 	 	(145) 	  	
Repurchase of shares	  	 	(430) 	  	 	 	(450) 	  	 	 	(237) 	  	 	 	(332) 	  	 	 	(57) 	  	
Dividend declared on common shares	  	 	(223) 	  	 	 	(223) 	  	 	 	(223) 	  	 	 	(256) 	  	 	 	(174) 	  	
Cumulative translation, net of tax	  	 	(520) 	  	 	 	(202) 	  	 	 	119  	  	 	 	(41) 	  	 	 	(66) 	  	
Pension liability	  	 	9  	  	 	 	5  	  	 	 	(3) 	  	 	 	(5) 	  	 	 	(11) 	  	
Other (2)	  	 	85  	  	 	 	67  	  	 	 	68  	  	 	 	24  	  	 	 	62  	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
	  	 $	29,587  	  	 	 $	30,017  	  	 	 $	30,325  	  	 	 $	29,369  	  	 	 $	28,825  	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
(1) At December 31, 2014, book value increased 2.6% and tangible book value increased 1.9% from December 31, 2013.
(2) Other primarily includes proceeds from exercise of stock options and stock compensation.

Reconciliation Book Value	  	Page 21	

					
	  	ACE Limited
 
Non-GAAP Financial Measures
 
(in millions of U.S. dollars)
 
(Unaudited)	  		
 
Regulation G - Non-GAAP Financial Measures
In presenting our results, we included and discussed certain non-GAAP measures. These non-GAAP measures, which may be defined differently by other companies, are important for an understanding of our overall results of operations and financial condition. However, they should not be viewed as a substitute for measures determined in accordance with generally accepted accounting principles (GAAP).
We provide financial measures such as gross premiums written, net premiums written, net premiums earned, and operating income on a constant-dollar basis. We believe it is useful to evaluate the trends in these measures exclusive of the effect of fluctuations in exchange rates between the U.S. dollar and the currencies in which our international business is transacted, as these exchange rates could fluctuate significantly between periods and distort the analysis of trends. The impact is determined by assuming constant foreign exchange rates between periods by translating prior period results using the same local currency exchange rates as the comparable current period.
Adjusted net realized gains (losses) is a non-GAAP financial measure that excludes realized gains and losses on crop derivatives. These derivatives were purchased to provide economic benefit, in a manner similar to reinsurance protection, in the event that a significant decline in commodity pricing will impact underwriting results. We view gains and losses on these derivatives as part of the results of our underwriting operations and therefore realized gains and losses from these derivatives are reclassified to Adjusted losses and loss expenses (a non-GAAP financial measure). Adjusted losses and loss expenses include gains and losses on crop derivatives. P&C loss and loss expense ratio and P&C combined ratio (both non-GAAP financial measures) include adjusted losses and loss expenses in the ratio numerator. A reconciliation of GAAP combined ratio to P&C combined ratio is provided on page 24.
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). P&C underwriting income is a non-GAAP financial measure which includes Adjusted losses and loss expenses. Insurance – North American Agriculture underwriting income includes gains (losses) on crop derivatives. Life underwriting income includes net investment income and gains (losses) from fair value changes in separate account assets that do not qualify for separate account reporting under GAAP.
Operating income or income excluding adjusted net realized gains (losses), net of tax, is a common performance measurement for insurance companies and non-GAAP financial measure. We believe this presentation enhances the understanding of our results of operations by highlighting the underlying profitability of our insurance business. We exclude adjusted net realized gains (losses) and net realized gains (losses) included in other income (expense) related to partially owned entities because the amount of these gains (losses) is heavily influenced by, and fluctuates in part according to, the availability of market opportunities. Operating income or income excluding adjusted net realized gains (losses) should not be viewed as a substitute for net income determined in accordance with GAAP.
Other income (expense) – operating is a non-GAAP financial measure and excludes the portion of net realized gains and losses related to unconsolidated entities from other income (expense). These gains and losses are reported as Net realized gains (losses) and represent the non-operating activities of entities where we hold more than an insignificant percentage of the investee’s shares. We exclude these gains and losses from other income (expense) to enhance the understanding of our core results of operations as they are heavily influenced by, and fluctuate in part according to market conditions. A reconciliation of Consolidated Other income (expense) on a GAAP basis to Consolidated Other income (expense) - operating is provided on page 24.
P&C combined ratio excluding catastrophe losses and prior period development (PPD) is a non-GAAP financial measure. The ratio numerator includes adjusted losses and loss expenses, policy acquisition costs, and administrative expenses adjusted to exclude catastrophe losses and PPD. The ratio denominator includes net premiums earned adjusted to exclude the amount of reinstatement premiums (expensed) collected and net earned premium adjustments on loss sensitive policies. We believe that excluding the impact of catastrophe losses and PPD provides a better evaluation of our core underwriting performance and enhances the understanding of the trends in our property & casualty business that may be obscured by these items.
P&C loss and loss expense ratio excluding the impact of catastrophe losses and PPD is a non-GAAP financial measure. The loss ratio numerator includes adjusted losses and loss expenses adjusted to exclude catastrophe losses and PPD. The loss ratio denominator includes Net premiums earned adjusted to exclude the amount of reinstatement premiums (expensed) collected. In periods where there are adjustments on loss sensitive policies, these adjustments are excluded from PPD and net earned premiums when calculating this ratio. We believe that excluding the impact of catastrophe losses and PPD provides a better evaluation of our core underwriting performance and enhances the understanding of the trends in our property & casualty business that may be obscured by these items.
P&C expense ratio excluding accident and health (A&H) is a non-GAAP financial measure and excludes the impact of our A&H business from our consolidated expense ratio. The expense ratio for the A&H business is typically higher than our traditional P&C business, and we believe that this measure provides better comparison to our peer companies that may not have a significant A&H block of business.
Global P&C performance metrics are non-GAAP financial measures and comprise consolidated operating results (including corporate) and exclude the operating results of the company’s Life and Insurance – North American Agriculture segments. We believe that these measures are useful and meaningful to investors as they are used by management to assess the company’s global P&C operations which are the most economically similar. We exclude the Insurance – North American Agriculture and Life segments because the results of these businesses do not always correlate with the results of our global P&C operations.
Life net premiums written and deposits collected, excluding life reinsurance, is a non-GAAP financial measure. Deposits collected on universal life and investment contracts (life deposits) are not reflected as revenues in our consolidated statements of operations in accordance with GAAP. However, we include life deposits in presenting growth in our Life business because new life deposits are an important component of production and key to our efforts to grow our business. However, we exclude results associated with life reinsurance as there is no new life reinsurance business currently being written.
Operating return on equity (ROE) or ROE calculated using operating income is an annualized non-GAAP financial measure and is calculated as operating income divided by average shareholders’ equity, as adjusted, for the period. To annualize a quarterly rate, multiply by four. Operating ROE is a useful measure as it enhances the understanding of the return on shareholders’ equity by highlighting the underlying profitability relative to shareholders’ equity excluding the effect of unrealized gains and losses on our investments.
Operating effective tax rate is a non-GAAP financial measure. The numerator excludes tax on adjusted net realized gains (losses). The denominator excludes adjusted net realized gains (losses), before tax. We exclude adjusted net realized gains (losses) and the related tax impact because these amounts are heavily influenced by, and fluctuate in part according to, the availability of market opportunities. Operating effective tax rate should not be viewed as a substitute for effective tax rate determined in accordance with GAAP.
Tangible book value per common share is a non-GAAP financial measure and is shareholders’ equity less goodwill and other intangible assets divided by the shares outstanding. We believe that goodwill and other intangible assets are not indicative of our underlying insurance results or trends and make book value comparisons to less acquisitive peer companies less meaningful. A reconciliation of tangible book value per share is provided on page 21. Tangible book value per common share excluding 2014 acquisitions is shareholders’ equity less goodwill and other intangible assets divided by the shares outstanding. The numerator adds back the goodwill and other intangible assets related to the 2014 acquisitions of the large corporate P&C business of Itaú Seguros, S.A. and The Siam Commercial Samaggi Insurance PCL in order to adjust for the distortive effect of acquisitions. In addition, we disclose per share measures that exclude the impact of foreign currency fluctuations during the year in order to adjust for the distortive effects of fluctuations in exchange rates.

Reconciliation Non-GAAP	  	Page 22	

					
	  	ACE Limited
 
Non-GAAP Financial Measures - 2
 
(in millions of U.S. dollars, except ratios)
 
(Unaudited)	  		
 
Regulation G - Non-GAAP Financial Measures (continued)
 
Operating income
Operating income is a common performance measure for insurance companies and is presented throughout this report.
The following table presents the reconciliation of Net income to Operating income:

  	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	  	Full Year	 	  	 Full Year 	 	
 	  	4Q-14	 	 	    3Q-14    	 	 	    2Q-14    	 	 	    1Q-14    	 	 	4Q-13  	 	  	2014	 	  	2013	 	

Net income, as reported	  	  $	555	  	 	$	785	  	 	$	779	  	 	$	734	  	 	$	998  	  	  	  $	2,853  	  	  	  $	3,758  	  	
Adjusted net realized gains (losses)	  	 	(210	) 	 	 	(165	) 	 	 	(81	) 	 	 	(102	) 	 	 	154  	  	  	 	(558) 	  	  	 	505  	  	
Net realized gains (losses) related to unconsolidated entities (1)	  	 	49	  	 	 	55	  	 	 	36	  	 	 	51	  	 	 	25  	  	  	 	191  	  	  	 	92  	  	
Income tax expense (benefit) on adjusted net realized gains (losses)	  	 	111	  	 	 	(4	) 	 	 	1	  	 	 	(8	) 	 	 	5  	  	  	 	100  	  	  	 	56  	  	
	  	 	 	 	  	 	 	 	  	 	 	 	
Operating income	  	  $	827	  	 	$	891	  	 	$	825	  	 	$	777	  	 	$	824  	  	  	  $	3,320  	  	  	  $	3,217  	  	

(1) Realized gains (losses) on partially-owned entities, which are investments where we hold more than an insignificant percentage of the investee’s shares. The net income or loss is included in other income (expense).	

The following table presents the Operating income (loss) of each segment and Corporate:	  	
								
  	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	  	  Full Year  	 	  	  Full Year  	 	
 	  	4Q-14	 	 	3Q-14	 	 	2Q-14	 	 	1Q-14	 	 	4Q-13	 	  	2014	 	  	2013	 	

Insurance – North American P&C	  	  $	372	  	 	$	337	  	 	$	378	  	 	$	411	  	 	  $	402  	  	  	  $	1,498  	  	  	  $	1,446  	  	
Insurance – Overseas General	  	 	294	  	 	 	348	  	 	 	282	  	 	 	239	  	 	 	279  	  	  	 	1,163  	  	  	 	1,094  	  	
Global Reinsurance	  	 	127	  	 	 	145	  	 	 	146	  	 	 	144	  	 	 	145  	  	  	 	562  	  	  	 	576  	  	
Corporate	  	 	(87	) 	 	 	(68	) 	 	 	(72	) 	 	 	(69	) 	 	 	(68) 	  	  	 	(296) 	  	  	 	(269) 	  	
	  	 	 	 	  	 	 	 	  	 	 	 	
Global P&C (including Corporate)	  	 	706	  	 	 	762	  	 	 	734	  	 	 	725	  	 	 	758  	  	  	 	2,927  	  	  	 	2,847  	  	
								
Insurance – North American Agriculture	  	 	45	  	 	 	57	  	 	 	19	  	 	 	(25	) 	 	 	(20) 	  	  	 	96  	  	  	 	63  	  	
	  	 	 	 	  	 	 	 	  	 	 	 	
Consolidated Results (including Corporate) Excluding Life Segment	  	 	751	  	 	 	819	  	 	 	753	  	 	 	700	  	 	 	738  	  	  	 	3,023  	  	  	 	2,910  	  	
								
Life	  	 	76	  	 	 	72	  	 	 	72	  	 	 	77	  	 	 	86  	  	  	 	297  	  	  	 	307  	  	
	  	 	 	 	  	 	 	 	  	 	 	 	
Consolidated operating income	  	  $	827	  	 	$	891	  	 	$	825	  	 	$	777	  	 	  $	824  	  	  	  $	3,320  	  	  	  $	3,217  	  	

Operating ROE	   	
 
The following table presents the reconciliation of ROE to Operating ROE:	

 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	  	Full Year	 	  	Full Year	 	
 	  	  4Q-14  	 	 	 	 	 	 	 	 	 	 	 	4Q-13	 	  	2014	 	  	2013	 	
	  	 	 	 	 				 				 				 	 	 	 	  	 	 	 	  	 	 	 	
Net income	  	  $	555  	  	 				 				 				 	  $	998  	  	  	  $	2,853  	  	  	  $	3,758  	  	
Operating income	  	  $	827  	  	 				 				 				 	  $	824  	  	  	  $	3,320  	  	  	  $	3,217  	  	
								
Equity - beginning of period, as reported	  	  $	    30,017  	  	 				 				 				 	  $	28,218  	  	  	  $	28,825  	  	  	  $	27,531  	  	
Less: unrealized gains (losses) on investments, net of deferred tax	  	 	1,757  	  	 				 				 				 	 	1,319  	  	  	 	1,174  	  	  	 	2,633  	  	
	  	 	 	 	 				 				 				 	 	 	 	  	 	 	 	  	 	 	 	
Equity - beginning of period, as adjusted	  	  $	28,260  	  	 				 				 				 	  $	26,899  	  	  	  $	27,651  	  	  	  $	24,898  	  	

Equity - end of period, as reported	  	  $	29,587  	  	 				 				 				 	  $	28,825  	  	  	  $	29,587  	  	  	  $	28,825  	  	
Less: unrealized gains (losses) on investments, net of deferred tax	  	 	1,851  	  	 				 				 				 	 	1,174  	  	  	 	1,851  	  	  	 	1,174  	  	
	  	 	 	 	 				 				 				 	 	 	 	  	 	 	 	  	 	 	 	
Equity - end of period, as adjusted	  	  $	27,736  	  	 				 				 				 	  $	  27,651  	  	  	  $	  27,736  	  	  	  $	  27,651  	  	

Average equity, as reported	  	  $	29,802  	  	 				 				 				 	  $	28,522  	  	  	  $	29,206  	  	  	  $	28,178  	  	
Average equity, as adjusted	  	  $	27,998  	  	 				 				 				 	  $	27,275  	  	  	  $	27,694  	  	  	  $	26,275  	  	
								
Operating ROE	  	 	11.8%  	  	 				 				 				 	 	12.1%  	  	  	 	12.0%  	  	  	 	12.2%  	  	
ROE	  	 	7.5%  	  	 				 				 				 	 	14.0%  	  	  	 	9.8%  	  	  	 	13.3%  	  	

Reconciliation Non-GAAP 2	  	Page 23	

					
	  	ACE Limited
 
Non-GAAP Financial Measures - 3
 
(in millions of U.S. dollars, except ratios)
 
(Unaudited)	  		
 
Regulation G - Non-GAAP Financial Measures (continued)
 
Operating effective tax rate
The following table presents the reconciliation of effective tax rate to the operating effective tax rate:

  	 	4Q-14  	 	 	3Q-14  	 	 	2Q-14  	 	 	1Q-14  	 	 	4Q-13  	 	 	  Full Year  
2014	 	 	  Full Year  
2013	 	
	 	 	 	 	 	 	 	 	 	 	 	 	
Tax expense, as reported	 	 $	232  	  	 	 $	176  	  	 	 $	133  	  	 	 $	93  	  	 	 $	88  	  	 	 $	634  	  	 	 $	480  	  	
Tax expense (benefit) on adjusted net realized gains (losses) (1)	 	 	111  	  	 	 	(4) 	  	 	 	1  	  	 	 	(8) 	  	 	 	5  	  	 	 	100  	  	 	 	56  	  	
	 	 	 	 	 	 	 	 	 	 	 	 	
Tax expense, adjusted	 	 $	121  	  	 	 $	180  	  	 	 $	132  	  	 	 $	101  	  	 	 $	83  	  	 	 $	534  	  	 	 $	424  	  	
	 	 	 	 	 	 	 	 	 	 	 	 	
Income before tax, as reported	 	 $	787  	  	 	 $	961  	  	 	 $	912  	  	 	 $	827  	  	 	 $	  1,086  	  	 	 $	  3,487  	  	 	 $	  4,238  	  	
Less: adjusted realized gains (losses)	 	 	(210) 	  	 	 	(165) 	  	 	 	(81) 	  	 	 	(102) 	  	 	 	154  	  	 	 	(558) 	  	 	 	505  	  	
Less: realized gains (losses) related to unconsolidated entities	 	 	49  	  	 	 	55  	  	 	 	36  	  	 	 	51  	  	 	 	25  	  	 	 	191  	  	 	 	92  	  	
	 	 	 	 	 	 	 	 	 	 	 	 	
Operating income before tax	 	 $	948  	  	 	 $	1,071  	  	 	 $	957  	  	 	 $	878  	  	 	 $	907  	  	 	 $	3,854  	  	 	 $	3,641  	  	
	 	 	 	 	 	 	 	 	 	 	 	 	
Effective tax rate	 	 	29.5% 	  	 	 	18.3% 	  	 	 	14.6% 	  	 	 	11.3% 	  	 	 	8.1% 	  	 	 	18.2% 	  	 	 	11.3% 	  	
Adjustment for tax impact of adjusted net realized gains (losses)	 	 	 -16.8% 	  	 	 	 -1.4% 	  	 	 	 -0.9% 	  	 	 	0.2% 	  	 	 	1.1% 	  	 	 	-4.3% 	  	 	 	0.3% 	  	
	 	 	 	 	 	 	 	 	 	 	 	 	
Operating effective tax rate	 	 	12.7% 	  	 	 	16.9% 	  	 	 	13.7% 	  	 	 	  11.5% 	  	 	 	9.2% 	  	 	 	13.9% 	  	 	 	11.6% 	  	

(1) Q4 2014 and full year 2014 include $115 million due to a deferred tax charge related to unrealized foreign exchange losses. We exclude the additional tax expense from operating income because it was related to foreign currencies which could fluctuate significantly between periods and we view this similarly to unrealized gains (losses) which may reverse over time.
 
Other income (expense) - operating
 
The following table presents the reconciliation of Consolidated Other income (expense) on a GAAP basis to Consolidated Other income (expense) - operating. Other income (expense) – operating is a non-GAAP financial measure which excludes gains (losses) from fair value changes in separate account assets that do not qualify for separate account reporting under GAAP and the portion of net realized gains and losses related to unconsolidated entities. Gains (losses) from fair value changes in separate account assets are reclassified from Other income (expense) for purposes of presenting Life underwriting income, as the offsetting movement in the separate account liabilities is included in Policy benefits. Net realized gains (losses) related to unconsolidated entities is excluded from operating income in order to enhance the understanding of our core results of operations as they are heavily influenced by, and fluctuate in part according to market conditions.

  

	
  	 	  4Q-14  	 	 	  3Q-14  	 	 	  2Q-14  	 	 	  1Q-14  	 	 	4Q-13  	 	 	  Full Year  
2014	 	 	  Full Year  
2013	 	
	 	 	 	 	 	 	 	 	 	 	 	 	
Consolidated GAAP Other income (expense):	 				 				 				 				 				 				 				
Consolidated excluding Life segment	 	 $	18  	  	 	 $	22  	  	 	 $	12  	  	 	 $	30  	  	 	 $	4  	  	 	 $	82  	  	 	 $	(18) 	  	
Life segment	 	 	3  	  	 	 	(3) 	  	 	 	13  	  	 	 	(13) 	  	 	 	3  	  	 	 	-  	  	 	 	3  	  	
	 	 	 	 	 	 	 	 	 	 	 	 	
Consolidated	 	 	21  	  	 	 	19  	  	 	 	25  	  	 	 	17  	  	 	 	7  	  	 	 	82  	  	 	 	(15) 	  	
								
Less: Gains (losses) from fair value changes in separate account assets	 				 				 				 				 				 				 				
Consolidated excluding Life segment	 	 	-  	  	 	 	-  	  	 	 	-  	  	 	 	-  	  	 	 	-  	  	 	 	-  	  	 	 	-  	  	
Life segment	 	 	(3) 	  	 	 	(6) 	  	 	 	17  	  	 	 	(6) 	  	 	 	9  	  	 	 	2  	  	 	 	16  	  	
	 	 	 	 	 	 	 	 	 	 	 	 	
Consolidated	 	 	(3) 	  	 	 	(6) 	  	 	 	17  	  	 	 	(6) 	  	 	 	9  	  	 	 	2  	  	 	 	16  	  	
								
Less: Net realized gains (losses) related to unconsolidated entities	 				 				 				 				 				 				 				
Consolidated excluding Life segment	 	 	43  	  	 	 	51  	  	 	 	38  	  	 	 	53  	  	 	 	27  	  	 	 	185  	  	 	 	87  	  	
Life segment	 	 	6  	  	 	 	4  	  	 	 	(2) 	  	 	 	(2) 	  	 	 	(2) 	  	 	 	6  	  	 	 	5  	  	
	 	 	 	 	 	 	 	 	 	 	 	 	
Consolidated	 	 	49  	  	 	 	55  	  	 	 	36  	  	 	 	51  	  	 	 	25  	  	 	 	191  	  	 	 	92  	  	
								
Consolidated Other income (expense) - operating:	 				 				 				 				 				 				 				
Consolidated excluding Life segment	 	 	(25) 	  	 	 	(29) 	  	 	 	(26) 	  	 	 	(23) 	  	 	 	(23) 	  	 	 	(103) 	  	 	 	(105) 	  	
Life segment	 	 	-  	  	 	 	(1) 	  	 	 	(2) 	  	 	 	(5) 	  	 	 	(4) 	  	 	 	(8) 	  	 	 	(18) 	  	
	 	 	 	 	 	 	 	 	 	 	 	 	
Consolidated	 	 $	(25) 	  	 	 $	(30) 	  	 	 $	(28) 	  	 	 $	(28) 	  	 	 $	(27) 	  	 	 $	(111) 	  	 	 $	(123) 	  	

P&C combined ratio
 
The following table presents the reconciliation of GAAP combined ratio to P&C combined ratio. The P&C combined ratio includes the impact of realized gains and losses on crop derivatives. These derivatives were purchased to provide economic benefit, in a manner similar to reinsurance protection, in the event that a significant decline in commodity pricing will impact underwriting results. We view gains and losses on these derivatives as part of the results of our underwriting operations.

     
	
  	 	  4Q-14  	 	 	  3Q-14  	 	 	  2Q-14  	 	 	  1Q-14  	 	 	  4Q-13  	 	 	  Full Year  
2014	 	 	  Full Year  
2013	 	
	 	 	 	 	 	 	 	 	 	 	 	 	
GAAP combined ratio	 	 	88.5%	  	 	 	87.3%	  	 	 	87.7%	  	 	 	88.8%	  	 	 	89.3%  	  	 	 	88.1%  	  	 	 	88.0%  	  	
Impact of gains and losses on crop derivatives	 	 	0.0%	  	 	 	-1.0%	  	 	 	-0.2%	  	 	 	0.0%	  	 	 	0.0%  	  	 	 	-0.4%  	  	 	 	0.0%  	  	
	 	 	 	 	 	 	 	 	 	 	 	 	
P&C combined ratio	 	 	88.5%	  	 	 	86.3%	  	 	 	87.5%	  	 	 	88.8%	  	 	 	89.3%  	  	 	 	87.7%  	  	 	 	88.0%  	  	

			
Reconciliation Non-GAAP 3	  	Page 24	

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

Glossary	  	Page 25