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 31, 2006
 
ACE LIMITED
(Exact name of registrant as specified in its charter)

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

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

Item 2.02.    Results of Operations and Financial Condition
 
On January 31, 2006, ACE Limited issued a press release reporting its fourth quarter and year end 2005 results and the availability of its fourth quarter financial supplement. The press release and the financial supplement are attached hereto as Exhibit 99.1 and Exhibit 99.2, respectively, and are hereby incorporated herein by  reference.
 
Item 9.01.    Financial Statements, Pro Forma Financial Information and Exhibits.
 
(c)	Exhibits	

Exhibit
  Number  
	  	  Description  

99.1	  	Press release, dated January 31, 2006, reporting fourth quarter and year end results	
		
99.2	  	Fourth Quarter 2005 Financial Supplement	

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

ACE LIMITED	
		
By:	 	/ S /    P HILIP V. B ANCROFT        	
 	 	Philip V. Bancroft	
 	 	Chief Financial Officer	
 
DATE: January 31, 2006

EXHIBIT INDEX

  Number  
	  	  Description  
	  	  Method of Filing  

99.1	  	Press release, dated January 31, 2006, reporting fourth quarter and year end results	  	Furnished herewith	
			
99.2	  	Fourth Quarter 2005 Financial Supplement	  	Furnished herewith	
  
EXHIBIT 99.1

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

FOR IMMEDIATE RELEASE

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

ACE LIMITED REPORTS FOURTH QUARTER 2005 NET INCOME OF $237 MILLION,
FULL YEAR 2005 NET INCOME OF $1,029 MILLION;
FULL YEAR P&C COMBINED RATIO WAS 99.3% FOLLOWING AFTER-TAX
CATASTROPHE LOSSES OF $1,049 MILLION
 
HAMILTON, Bermuda, January 31, 2006 — ACE Limited (NYSE: ACE) today reported net income for the fourth quarter ended December 31, 2005 of $237 million or $0.70 per common share after payment of preferred dividends, compared with net income of $278 million or $0.93 per share for the same quarter last year. Income excluding net realized gains (losses) for the fourth quarter was $245 million, or $0.72 per share, compared with $160 million or $0.52 per share for the same quarter of last year. (1) The losses from hurricane Wilma, $251 million, and development primarily related to hurricanes Katrina, Rita and Dennis, $53 million, together resulted in an after-tax charge for the quarter of $0.94 per share.
 
Fourth Quarter Summary
(in millions, except share and per share amounts)

 	  	 	 	 	 	 	 	 	 	 	(Per Share - Diluted)	 	
 	  	2005
	 	 	2004
	 	 	Change
	 	 	2005
	 	 	2004
	  	Change
	 	
 	  	(Restated)	 	 	(Restated)	 	
Net income	  	$	237	 	 	$	278	 	 	(15	%)	 	$	0.70	 	 	$	0.93	  	(25	%)	
Net realized gains (losses), net of tax	  	 	(8	)	 	 	118	 	 	—  	 	 	 	(0.02	)	 	 	0.41	  	—  	 	
							
Income excluding net realized gains, net of tax (1)	  	 	245	 	 	 	160	 	 	53	%	 	 	0.72	 	 	 	0.52	  	38	%	
							
Asbestos, environmental and other run-off (A&E) charge, net of tax	  	 	—  	 	 	 	302	 	 	—  	 	 	 	—  	 	 	 	1.06	  	—  	 	
Catastrophe losses, net of tax	  	 	304	 	 	 	31	 	 	—  	 	 	 	0.94	 	 	 	0.11	  	—  	 	
Income excluding net realized gains (losses), catastrophe losses and A&E charge, net of tax (1)	  	$	549	 	 	$	493	 	 	11	%	 	$	1.66	 	 	$	1.69	  	(2	%)	
							
Combined ratio, excluding A&E charge and catastrophe losses	  	 	89.9	%	 	 	87.1	%	 	 	 	 	 	 	 	 	 	 	  	 	 	
Average shares outstanding	  	 	 	 	 	 	 	 	 	 	 	 	 	323.4	 	 	 	286.0	  	 	 	
 
Page 1/7

Net income for the year decreased 11% to $1,029 million or $3.31 per share, compared with $1,153 million or $3.88 per share in 2004. For 2005, income excluding net realized gains (losses) decreased 4% to $956 million or $3.06 per share, compared with $1 billion or $3.34 per share in 2004. Record industry catastrophe losses resulted in a net after-tax charge of $1,049 million or $3.53 per share, compared with $437 million or $1.53 per share in 2004. The P&C combined ratio for the year was 99.3%.

Years Ended	 	
(in millions, except share and per share amounts )	 	
 	 	 	(Per Share - Diluted)	 	
 	  	2005
	 	 	2004
	 	 	Change
	 	 	2005
	  	2004
	  	Change
	 	
 	  	(Restated)	 	 	(Restated)	 	
Net income	  	$	1,029	 	 	$	1,153	 	 	(11	%)	 	$	3.31	  	$	3.88	  	(15	%)	
Net realized gains, net of tax	  	 	73	 	 	 	153	 	 	—  	 	 	 	0.25	  	 	0.54	  	—  	 	
Income excluding net realized gains (losses), net of tax (1)	  	 	956	 	 	 	1,000	 	 	(4	%)	 	 	3.06	  	 	3.34	  	(8	%)	
A&E charge, net of tax	  	 	—  	 	 	 	302	 	 	—  	 	 	 	—  	  	 	1.06	  	—  	 	
Catastrophe losses, net of tax	  	 	1,049	 	 	 	437	 	 	—  	 	 	 	3.53	  	 	1.53	  	—  	 	
Income excluding net realized gains (losses), A&E charge and catastrophe losses, net of tax (1)	  	$	2,005	 	 	$	1,739	 	 	15	%	 	$	6.59	  	$	5.93	  	11	%	
Combined ratio, excluding A&E charge and catastrophe losses	  	 	88.5	%	 	 	87.5	%	 	 	 	 	 	 	  	 	 	  	 	 	
Average shares outstanding	  	 	 	 	 	 	 	 	 	 	 	 	 	297.3	  	 	285.5	  	 	 	
 
Evan Greenberg, President and Chief Executive Officer of ACE Limited, commented: “This past year was the worst in history for insured catastrophe losses, yet ACE finished the year with a combined ratio under 100%, an ROE of approximately 9%, and book value growth of 7%. While failing to meet our standards, these results are a testament to the underwriting discipline of our organization. Looking ahead, ACE is well-positioned both operationally and financially to capitalize on a dynamic market and the opportunities it presents.”
 
Other 2005 operating highlights were as follows:
 
 	•	 	P&C net premiums written increased 2% for the year	
 	•	 	The P&C combined ratio was 99.3% for the year compared with 96.9% a year ago	
 	•	 	Operating cash flow amounted to $4.3 billion for the year	
 	•	 	Cash and invested assets increased by $5 billion in 2005 to $32.4 billion	
 	•	 	Net paid and unpaid losses and loss expenses increased $3 billion to $19.6 billion	
 	•	 	Net investment income increased 25% for the year to $1.26 billion	
 	•	 	Shareholders’ equity increased 20% for the year to $11.8 billion	
 	•	 	Tangible equity rose to $9.1 billion, a gain of 27% from year-end 2004	
 	•	 	Debt to total capital ratio improved to 14.8% from 16.3% at year-end 2004	
 	•	 	Return on equity for 2005 was 8.9% (2) ; excluding FAS 115, it was 9.3%	
 	•	 	Book value per share as of December 31, 2005 increased 7% in 2005 to $34.78 (3)	
 
On October 4, 2005, the Company issued common stock of approximately $1.5 billion.
 
Details of our financial results, excluding the impact of catastrophe losses and related premiums for the year, for our P&C business segments are available in the financial supplement. Key items include:
 
Page 2/7

 	•	 	Insurance-North American: Net premiums written increased 7% for the year. The combined ratio was 95.2%. Adjusted for catastrophe losses the combined ratio was 87.9%. (1)	
 
 	•	 	Insurance-Overseas General: Net premiums written decreased 3% for the year. The segment’s combined ratio was 94.0%. Adjusted for catastrophe losses the combined ratio was 88.5%. (1)	
 
 	•	 	Global Reinsurance: Net premiums written were up 2% for the year. This segment had a combined ratio of 115.6%. Adjusted for catastrophe losses the combined ratio was 78.6%. (1)	
 
 	•	 	Financial Services: Income excluding net realized gains (losses) decreased 35% to $137 million for the year. Adjusted for catastrophe losses and the sale of Assured Guaranty Ltd. in 2004, income excluding net realized gains (losses) increased 19% to $229 million.	
 
All amounts included herein for prior periods have been adjusted to reflect the previously reported restatements.
 
Please refer to the ACE Financial Supplement December 31, 2005, which is posted on the Company’s website, for more detailed information on individual segment performance, together with additional disclosure on reinsurance recoverable, loss reserves, catastrophe loss charges by segment, investment portfolio and capital structure. ACE’s website reference (url) is http://media.corporate-ir.net/media_files/nys/ace/reports/fin_supp_december_31_2005.xls . (Due to the length of this URL, it may be necessary to copy and paste this hyperlink into your Internet browser’s URL address field.)
 
ACE will host its fourth quarter 2005, year-end earnings conference call and webcast on Wednesday, February 1, 2006 beginning at 8:30 a.m. EST. The earnings conference call will be available via live and archived webcast at www.acelimited.com or by dialing 888-889-5602 (within the United States) or 973-582-2734 (international); conference ID 6828632. Please refer to the ACE Limited website in the Investor Information section under Calendar of Events for details. A replay of the call will be available from approximately 11:30 a.m. EST on Wednesday, February 1, 2006 until Wednesday, March 1, 2006. To listen to the replay, dial: 1-877-519-4471 (in the United States) or 1-973-341-3080 (international); passcode 6828632#.
 
The ACE Group of Companies is a global leader in insurance and reinsurance serving a diverse group of clients. Headed by ACE Limited, a component of the Standard & Poor’s 500 stock index, the ACE Group conducts its business on a worldwide basis with operating subsidiaries in more than 50 countries. Additional information can be found at: www.acelimited.com .

1 Non-GAAP Financial Measures:
Operating Income or Income excluding net realized gains (losses), net of tax is a common performance measurement. We believe this presentation enhances the understanding of our results of operations by highlighting the underlying profitability of our insurance business. We exclude net realized gains (losses) because the amount of these gains (losses) is heavily influenced by, and fluctuates in part according to, the availability of market opportunities.
Income excluding net realized gains (losses), A&E charges and catastrophe losses, net of tax is a non-GAAP measure. We present income excluding net realized gains (losses), A&E charges and catastrophe losses, net of tax because those losses are deemed to be significant to the quarter and the year. We believe this separate presentation is meaningful and useful for users of our financial information.
Underwriting income is calculated by subtracting losses and loss expenses, life and annuity benefits, policy acquisition costs and administrative expenses from net premiums earned. We use underwriting income and operating ratios to monitor the results of our operations without the impact of certain factors, including net investment income, other (income) expense, interest and income tax expense and net realized gains (losses). We believe the use of these measures enhances the understanding of our results of operations by highlighting the underlying profitability of our insurance business.
Tangible shareholders’ equity is shareholders’ equity less goodwill.
See reconciliation of Non-GAAP Financial Measures on page 32 in the financial supplement. These measures should not be viewed as a substitute for net income determined in accordance with generally accepted accounting principles (GAAP).
 
2 Calculated using income excluding net realized gains (losses).
 
3 Book value per ordinary share is ordinary shareholders’ equity divided by the shares outstanding.
 
Page 3/7

Cautionary Statement Regarding Forward-Looking Statements:
 
Any forward-looking statements made in this press release reflect the Company’s current views with respect to future events and financial performance and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements involve risks and uncertainties, which may cause actual results to differ materially from those set forth in these statements. For example, the Company’s forward-looking statements could be affected by competition, pricing and policy term trends, the levels of new and renewal business achieved, market acceptance, changes in demand, the frequency of unpredictable catastrophic events, actual loss experience, uncertainties in the reserving or settlement process, new theories of liability, judicial, legislative, regulatory and other governmental developments, litigation tactics and developments, investigation developments, the amount and timing of reinsurance recoverable, credit developments among reinsurers, actual market developments, rating agency action, possible terrorism or the outbreak and effects of war and economic, political, regulatory, insurance and reinsurance business conditions, as well as management’s response to these factors, and other factors identified in the Company’s filings with the Securities and Exchange Commission. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the dates on which they are made. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
 
(tables to follow)
 
Page 4/7

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

							
 	  	December 31
2005
	  	December 31
2004
	
 	  	(Unaudited)	  	 	
Assets	  	 	 	  	 	 	
Total investments	  	$	31,922	  	$	26,925	
Cash	  	 	512	  	 	498	
Insurance and reinsurance balances receivable	  	 	3,355	  	 	3,255	
Reinsurance recoverable	  	 	15,519	  	 	14,882	
Other assets	  	 	11,211	  	 	10,623	
 	  			  			
Total assets	  	$	62,519	  	$	56,183	
 	  			  			
Liabilities	  	 	 	  	 	 	
Unpaid losses and loss expenses	  	$	35,090	  	$	31,483	
Unearned premiums	  	 	5,884	  	 	5,983	
Other liabilities	  	 	9,743	  	 	8,872	
 	  			  			
Total liabilities	  	$	50,717	  	$	46,338	
 	  			  			
Shareholders’ equity	  	 	 	  	 	 	
Total shareholders’ equity	  	$	11,802	  	$	9,845	
 	  			  			
Total liabilities and shareholders’ equity	  	$	62,519	  	$	56,183	
 	  			  			
Book value per ordinary share (3) 	  	$	34.78	  	$	32.65	

 
Page 5/7

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

																	
 	  	Three Months Ended
December 31
	 	 	Years Ended
December 31
	 	
 	  	2005
	 	 	Restated
2004
	 	 	2005
	 	 	Restated
2004
	 	
Gross premiums written	  	$	3,797	 	 	$	3,646	 	 	$	16,814	 	 	$	16,094	 	
Net premiums written	  	 	2,632	 	 	 	2,641	 	 	 	11,796	 	 	 	11,496	 	
Net premiums earned	  	 	2,863	 	 	 	2,881	 	 	 	11,752	 	 	 	11,110	 	
					
Losses and loss expenses	  	 	2,124	 	 	 	2,216	 	 	 	8,560	 	 	 	7,690	 	
Life and annuity benefits	  	 	35	 	 	 	39	 	 	 	143	 	 	 	175	 	
Policy acquisition costs	  	 	427	 	 	 	411	 	 	 	1,670	 	 	 	1,565	 	
Administrative expenses	  	 	327	 	 	 	337	 	 	 	1,287	 	 	 	1,265	 	
 	  				 				 				 				
Underwriting income (loss) (1)	  	 	(50	)	 	 	(122	)	 	 	92	 	 	 	415	 	
					
Net investment income	  	 	354	 	 	 	282	 	 	 	1,264	 	 	 	1,013	 	
Net realized gains (losses)	  	 	(25	)	 	 	130	 	 	 	76	 	 	 	197	 	
Interest expense	  	 	46	 	 	 	43	 	 	 	174	 	 	 	183	 	
Other expense	  	 	(4	)	 	 	1	 	 	 	(40	)	 	 	3	 	
Income tax expense (benefit)	  	 	—  	 	 	 	(32	)	 	 	269	 	 	 	286	 	
 	  				 				 				 				
Net income	  	 	237	 	 	 	278	 	 	 	1,029	 	 	 	1,153	 	
Preference shares dividend	  	 	(12	)	 	 	(12	)	 	 	(45	)	 	 	(45	)	
 	  				 				 				 				
Net income available to holders of ordinary shares	  	$	225	 	 	$	266	 	 	$	984	 	 	$	1,108	 	

Diluted earnings per share:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income excluding net realized gains (losses) (1)	  	$	0.72	 	 	$	0.52	 	 	$	3.06	 	 	$	3.34	 	
Net income	  	$	0.70	 	 	$	0.93	 	 	$	3.31	 	 	$	3.88	 	
					
Weighted average basic shares outstanding	  	 	317,061,215	 	 	 	281,308,706	 	 	 	292,401,343	 	 	 	280,271,225	 	
Weighted average diluted shares outstanding	  	 	323,357,508	 	 	 	286,048,064	 	 	 	297,299,883	 	 	 	285,485,472	 	
					
Loss and loss expense ratio	  	 	76.0	%	 	 	78.5	%	 	 	74.4	%	 	 	70.7	%	
Policy acquisition cost ratio	  	 	15.0	%	 	 	14.3	%	 	 	14.3	%	 	 	14.2	%	
Administrative expense ratio	  	 	11.4	%	 	 	11.8	%	 	 	11.0	%	 	 	11.5	%	
Combined ratio	  	 	102.4	%	 	 	104.6	%	 	 	99.7	%	 	 	96.4	%	

Ratios exclude life insurance and reinsurance business
 
Page 6/7

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

																	
 	  	Three Months Ended
December 31
	 	 	Years Ended
December 31
	 	
 	  	2005
	 	 	Restated
2004
	 	 	2005
	 	 	Restated
2004
	 	
Gross Premiums Written	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
					
Insurance—North American	  	$	2,090	 	 	$	1,885	 	 	$	8,834	 	 	$	8,126	 	
Insurance—Overseas General	  	 	1,388	 	 	 	1,389	 	 	 	5,775	 	 	 	5,851	 	
Global Reinsurance	  	 	283	 	 	 	286	 	 	 	1,599	 	 	 	1,567	 	
Financial Services	  	 	(31	)	 	 	29	 	 	 	358	 	 	 	320	 	
Life Insurance and Reinsurance	  	 	67	 	 	 	57	 	 	 	248	 	 	 	230	 	
 	  				 				 				 				
Total	  	$	3,797	 	 	$	3,646	 	 	$	16,814	 	 	$	16,094	 	

Net Premiums Written	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
					
Insurance—North American	  	$	1,310	 	 	$	1,194	 	 	$	5,454	 	 	$	5,101	 	
Insurance—Overseas General	  	 	1,014	 	 	 	1,083	 	 	 	4,195	 	 	 	4,335	 	
Global Reinsurance	  	 	276	 	 	 	280	 	 	 	1,546	 	 	 	1,518	 	
Financial Services	  	 	(35	)	 	 	27	 	 	 	353	 	 	 	316	 	
Life Insurance and Reinsurance	  	 	67	 	 	 	57	 	 	 	248	 	 	 	226	 	
 	  				 				 				 				
Total	  	$	2,632	 	 	$	2,641	 	 	$	11,796	 	 	$	11,496	 	

Net Premiums Earned	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
					
Insurance—North American	  	$	1,347	 	 	$	1,243	 	 	$	5,289	 	 	$	4,679	 	
Insurance—Overseas General	  	 	1,048	 	 	 	1,126	 	 	 	4,239	 	 	 	4,296	 	
Global Reinsurance	  	 	395	 	 	 	359	 	 	 	1,531	 	 	 	1,389	 	
Financial Services	  	 	6	 	 	 	96	 	 	 	445	 	 	 	520	 	
Life Insurance and Reinsurance	  	 	67	 	 	 	57	 	 	 	248	 	 	 	226	 	
 	  				 				 				 				
Total	  	$	2,863	 	 	$	2,881	 	 	$	11,752	 	 	$	11,110	 	

Income (Loss) Excluding Net Realized Gains (Losses) (1) 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
					
Insurance—North American	  	$	125	 	 	$	(135	)	 	$	581	 	 	$	266	 	
Insurance—Overseas General	  	 	104	 	 	 	194	 	 	 	463	 	 	 	510	 	
Global Reinsurance	  	 	(10	)	 	 	100	 	 	 	(83	)	 	 	193	 	
Financial Services	  	 	50	 	 	 	40	 	 	 	137	 	 	 	210	 	
Life Insurance and Reinsurance	  	 	24	 	 	 	18	 	 	 	100	 	 	 	51	 	
Corporate	  	 	(48	)	 	 	(57	)	 	 	(242	)	 	 	(230	)	
 	  				 				 				 				
Total	  	$	245	 	 	$	160	 	 	$	956	 	 	$	1,000	 	

 
# # #
 
Page 7/7
  
Exhibit 99.2

 
			
 	    	Financial Supplement
 
December 31, 2005	
		
Investor Contact
 
Helen M. Wilson
Phone: (441) 299-9283
Fax: (441) 292-8675	    	This report is for informational purposes only. It should be read in conjunction with documents filed by ACE Limited with the Securities and Exchange Commission, including the most recent Annual Report on Form 10-K/A and Quarterly Reports on Form 10-Q and Form 10-Q/A.	
		
email: investorrelations@ace.bm	    	Cautionary Statement Regarding Forward-Looking Statements:	
		
 	    	Any forward-looking statements made in this financial supplement reflect the Company’s current views with respect to future events and financial performance and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements involve risks and uncertainties which may cause actual results to differ materially from those set forth in these statements. For example, the Company’s forward-looking statements, such as statements concerning exposures, reserves and recoverables, could be affected by the frequency of unpredictable catastrophic events, actual loss experience, uncertainties in the reserving or settlement process, new theories of liability, judicial, legislative, regulatory and other governmental developments, litigation tactics and developments, investigation developments, the amount and timing of reinsurance receivable and credit developments among reinsurers. The Company’s forward-looking statements could also be affected by competition, pricing and policy term trends, the levels of new and renewal business achieved, market acceptance, changes in demand, actual market developments, rating agency action, possible terrorism or the outbreak and effects of war. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the dates on which they are made. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.	

					
	  	ACE Limited
Financial Supplement Table of Contents	  	 	

 	  	 	  	Page
	
I.	  	Financial Highlights	  	 	
 	  	- Consolidated Financial Highlights	  	1	
 	  	- Consolidated Financial Highlights 2005 Excluding Catastrophe Loss Charges	  	2	
 	  	- Consolidated Financial Highlights 2004 Excluding A&E (1) and Catastrophe Loss Charges	  	3	
			
II.	  	Consolidated Results	  	 	
 	  	- Consolidated Results - Consecutive Quarters	  	4-6	
 	  	- Summary Consolidated Balance Sheets	  	7	
 	  	- Consolidated Premiums by Line of Business	  	8	
 	  	- Consolidating Statement of Operations	  	9-10	
 	  	- Consolidating Schedule of Catastrophe Loss Charges	  	11-12	
 	  	- Loss Analysis	  	13-14	
			
III.	  	Segment Results	  	 	
  	  	- Insurance-North American	  	15	
 	  	- Insurance-Overseas General	  	16-17	
 	  	- Global Reinsurance	  	18-19	
 	  	- Financial Services	  	20	
 	  	- Life Insurance and Reinsurance (2)	  	21	
			
IV.	  	Balance Sheet Details	  	 	
 	  	- Loss Reserve Rollforward	  	22	
 	  	- Reinsurance Recoverable Analysis	  	23-26	
 	  	- Investment Portfolio	  	27-28	
 	  	- Net Realized and Unrealized Gains (Losses)	  	29	
 	  	- Capital Structure	  	30	
 	  	- Computation of Basic and Diluted Earnings Per Share	  	31	
			
V.	  	Other Disclosures	  	 	
 	  	- Non-GAAP Financial Measures	  	32	
 	  	- Book Value per Ordinary Share	  	33	
 	  	- Comprehensive Income	  	34	
 	  	- Glossary	  	35	
 
(1)	Asbestos, environmental and other run-off loss charges (A&E).	
 
(2)	We have classified all the Life Insurance business previously included with Insurance—Overseas General and all the Life Reinsurance business previously included with Global Reinsurance into a new Life segment based on how we plan to manage the business. All prior periods presented have been amended for this new presentation.	

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

 	  	Three months ended December 31
	 	 	 	 	 	Year ended December 31
	 	 	 	 	
 	  	2005
	 	 	2004
	 	 	% Change
4Q-05 vs.
4Q-04
	 	 	2005
	 	 	2004
	 	 	% Change
YTD-05 vs.
YTD-04
	 	
Gross premiums written	  	$	3,797	 	 	$	3,646	 	 	4	%	 	$	16,814	 	 	$	16,094	 	 	4	%	
							
Net premiums written	  	$	2,632	 	 	$	2,641	 	 	0	%	 	$	11,796	 	 	$	11,496	 	 	3	%	
							
Net premiums earned	  	$	2,863	 	 	$	2,881	 	 	-1	%	 	$	11,752	 	 	$	11,110	 	 	6	%	
							
Net investment income	  	$	354	 	 	$	282	 	 	26	%	 	$	1,264	 	 	$	1,013	 	 	25	%	
							
Net income (loss)	  	$	237	 	 	$	278	 	 	-15	%	 	$	1,029	 	 	$	1,153	 	 	-11	%	
							
Income excluding net realized gains (losses) (1)	  	$	245	 	 	$	160	 	 	53	%	 	$	956	 	 	$	1,000	 	 	-4	%	
							
Comprehensive income	  	$	117	 	 	$	398	 	 	-71	%	 	$	616	 	 	$	1,174	 	 	-48	%	
							
Operating cash flow	  	$	809	 	 	$	868	 	 	-7	%	 	$	4,308	 	 	$	4,939	 	 	-13	%	
							
Combined ratio	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Loss and loss expense ratio	  	 	76.0	%	 	 	78.5	%	 	 	 	 	 	74.4	%	 	 	70.7	%	 	 	 	
Underwriting and administrative expense ratio	  	 	26.4	%	 	 	26.1	%	 	 	 	 	 	25.3	%	 	 	25.7	%	 	 	 	
 	  				 				 	 	 	 				 				 	 	 	
Combined ratio	  	 	102.4	%	 	 	104.6	%	 	 	 	 	 	99.7	%	 	 	96.4	%	 	 	 	
							
Annualized ROE*	  	 	8.9	%	 	 	6.5	%	 	 	 	 	 	8.9	%	 	 	10.9	%	 	 	 	
Annualized ROE, excluding FAS 115*	  	 	9.3	%	 	 	7.0	%	 	 	 	 	 	9.3	%	 	 	11.7	%	 	 	 	
							
Effective tax rate on income excluding net realized gains (losses)	  	 	6	%	 	 	-38	%	 	 	 	 	 	22	%	 	 	19	%	 	 	 	
							
Diluted earnings per share	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income excluding net realized gains (losses) (1)	  	$	0.72	 	 	$	0.52	 	 	38	%	 	$	3.06	 	 	$	3.34	 	 	-8	%	
Net income	  	$	0.70	 	 	$	0.93	 	 	-25	%	 	$	3.31	 	 	$	3.88	 	 	-15	%	
							
Book value per ordinary share	  	$	34.78	 	 	$	32.65	 	 	7	%	 	$	34.78	 	 	$	32.65	 	 	7	%	
Tangible book value per ordinary share	  	$	26.42	 	 	$	23.16	 	 	14	%	 	$	26.42	 	 	$	23.16	 	 	14	%	
							
Weighted average basic ordinary shares outstanding	  	 	317.1	 	 	 	281.3	 	 	 	 	 	 	292.4	 	 	 	280.3	 	 	 	 	
Weighted average diluted ordinary shares outstanding	  	 	323.4	 	 	 	286.0	 	 	 	 	 	 	297.3	 	 	 	285.5	 	 	 	 	
Debt/ total capitalization	  	 	14.8	%	 	 	16.3	%	 	 	 	 	 	14.8	%	 	 	16.3	%	 	 	 	
 
(1)	See page 32 Non-GAAP Financial Measures.	
 
*	Calculated using income excluding net realized gains (losses).	

Financial Highlights	  	Page 1	

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

 	  	Three months ended December 31, 2005
	 	 	Year ended December 31, 2005
	 	
 	  	As reported
	 	 	Catastrophe
loss charge
	 	 	Adjusted (1)
	 	 	As reported
	 	 	Catastrophe
loss charge
	 	 	Adjusted (1)
	 	
Net premiums written	  	$	2,632	 	 	$	19	 	 	$	2,651	 	 	$	11,796	 	 	$	(44	)	 	$	11,752	 	
							
Net premiums earned	  	$	2,863	 	 	$	15	 	 	$	2,878	 	 	$	11,752	 	 	$	(80	)	 	$	11,672	 	
							
Losses and loss expenses	  	$	2,124	 	 	$	(360	)	 	$	1,764	 	 	$	8,560	 	 	$	(1,359	)	 	$	7,201	 	
							
Income tax expense	  	$	—  	 	 	$	71	 	 	$	71	 	 	$	269	 	 	$	230	 	 	$	499	 	
							
Net income (loss)	  	$	237	 	 	$	304	 	 	$	541	 	 	$	1,029	 	 	$	1,049	 	 	$	2,078	 	
							
Income excluding net realized gains (losses) (1)	  	$	245	 	 	$	304	 	 	$	549	 	 	$	956	 	 	$	1,049	 	 	$	2,005	 	
							
Combined ratio	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Loss and loss expense ratio	  	 	76.0	%	 	 	-12.6	%	 	 	63.4	%	 	 	74.4	%	 	 	-11.4	%	 	 	63.0	%	
Underwriting and administrative expense ratio	  	 	26.4	%	 	 	0.1	%	 	 	26.5	%	 	 	25.3	%	 	 	0.2	%	 	 	25.5	%	
 	  				 				 				 				 				 				
Combined ratio	  	 	102.4	%	 	 	-12.5	%	 	 	89.9	%	 	 	99.7	%	 	 	-11.2	%	 	 	88.5	%	
							
Effective tax rate on income excluding net realized gains (losses)	  	 	6	%	 	 	19	%	 	 	14	%	 	 	22	%	 	 	18	%	 	 	20	%	
							
Diluted earnings per share	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income excluding net realized gains (losses) (1)	  	$	0.72	 	 	$	0.94	 	 	$	1.66	 	 	$	3.06	 	 	$	3.53	 	 	$	6.59	 	
Net income (loss)	  	$	0.70	 	 	$	0.94	 	 	$	1.64	 	 	$	3.31	 	 	$	3.53	 	 	$	6.84	 	
							
Weighted average basic ordinary shares outstanding	  	 	317.1	 	 	 	 	 	 	 	317.1	 	 	 	292.4	 	 	 	 	 	 	 	292.4	 	
Weighted average diluted ordinary shares outstanding	  	 	323.4	 	 	 	 	 	 	 	323.4	 	 	 	297.3	 	 	 	 	 	 	 	297.3	 	
 
(1)	See page 32 Non-GAAP Financial Measures.	

 
			
Financial Highlights (2)	  	Page 2	

			
	  	ACE Limited	
	  	Consolidated Financial Highlights Excluding A&E (2) and Catastrophe Loss Charges	
	  	(in millions of U.S. dollars, except per share data and ratios)	
	  	(Unaudited)	

 	  	Three months ended December 31, 2004
	 	 	Year ended December 31, 2004
	 	
 	  	As reported
	 	 	A&E (2)
loss charge
	 	 	Catastrophe
loss charge
	 	 	Adjusted (1)
	 	 	As reported
	 	 	A&E (2)
 loss charge
	 	 	Catastrophe
loss charge
	 	 	Adjusted (1)
	 	
Net premiums written	  	$	2,641	 	 	$	—  	 	 	$	—  	 	 	$	2,641	 	 	$	11,496	 	 	$	—  	 	 	$	—  	 	 	$	11,496	 	
									
Net premiums earned	  	$	2,881	 	 	$	—  	 	 	$	—  	 	 	$	2,881	 	 	$	11,110	 	 	$	—  	 	 	$	11	 	 	$	11,121	 	
									
Losses and loss expenses	  	$	2,216	 	 	$	(465	)	 	$	(31	)	 	$	1,720	 	 	$	7,690	 	 	$	(465	)	 	$	(499	)	 	$	6,726	 	
									
Income tax expense (benefit)	  	$	(32	)	 	$	163	 	 	$	—  	 	 	$	131	 	 	$	286	 	 	$	163	 	 	$	73	 	 	$	522	 	
									
Net income	  	$	278	 	 	$	302	 	 	$	31	 	 	$	611	 	 	$	1,153	 	 	$	302	 	 	$	437	 	 	$	1,892	 	
									
Income excluding net realized gains (losses) (1)	  	$	160	 	 	$	302	 	 	$	31	 	 	$	493	 	 	$	1,000	 	 	$	302	 	 	$	437	 	 	$	1,739	 	
									
Combined ratio	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Loss and loss expense ratio	  	 	78.5	%	 	 	-16.4	%	 	 	-1.1	%	 	 	61.0	%	 	 	70.7	%	 	 	-4.2	%	 	 	-4.6	%	 	 	61.9	%	
Underwriting and administrative expense ratio	  	 	26.1	%	 	 	0.0	%	 	 	0.0	%	 	 	26.1	%	 	 	25.7	%	 	 	0.0	%	 	 	-0.1	%	 	 	25.6	%	
 	  				 				 				 				 				 				 				 				
Combined ratio	  	 	104.6	%	 	 	-16.4	%	 	 	-1.1	%	 	 	87.1	%	 	 	96.4	%	 	 	-4.2	%	 	 	-4.7	%	 	 	87.5	%	
									
Effective tax rate on income excluding net realized gains (losses)	  	 	-38	%	 	 	35	%	 	 	0	%	 	 	19	%	 	 	19	%	 	 	35	%	 	 	14	%	 	 	22	%	
									
Diluted earnings per share	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income excluding net realized gains (losses) (1)	  	$	0.52	 	 	$	1.06	 	 	$	0.11	 	 	$	1.69	 	 	$	3.34	 	 	$	1.06	 	 	$	1.53	 	 	$	5.93	 	
Net income (loss)	  	$	0.93	 	 	$	1.06	 	 	$	0.11	 	 	$	2.10	 	 	$	3.88	 	 	$	1.06	 	 	$	1.53	 	 	$	6.47	 	
									
Weighted average basic ordinary shares outstanding	  	 	281.3	 	 	 	 	 	 	 	 	 	 	 	281.3	 	 	 	280.3	 	 	 	 	 	 	 	 	 	 	 	280.3	 	
Weighted average diluted ordinary shares outstanding	  	 	286.0	 	 	 	 	 	 	 	 	 	 	 	286.0	 	 	 	285.5	 	 	 	 	 	 	 	 	 	 	 	285.5	 	
 
(1)	See page 32 Non-GAAP Financial Measures.	
 
(2)	Asbestos, environmental and other run-off loss charges (A&E).	

Financial Highlights (3)	  	Page 3	

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

 	  	4Q-05
	 	 	3Q-05
	 	 	2Q-05
	 	 	1Q-05
	 	 	4Q-04
	 	 	Full Year
2005
	 	 	Full Year
2004
	 	
Property and Casualty (2)	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Gross premiums written	  	$	3,761	 	 	$	3,989	 	 	$	4,138	 	 	$	4,320	 	 	$	3,560	 	 	$	16,208	 	 	$	15,544	 	
Net premiums written	  	 	2,600	 	 	 	2,616	 	 	 	2,834	 	 	 	3,145	 	 	 	2,557	 	 	 	11,195	 	 	 	10,954	 	
Net premiums earned	  	 	2,790	 	 	 	2,773	 	 	 	2,769	 	 	 	2,727	 	 	 	2,728	 	 	 	11,059	 	 	 	10,364	 	
Losses and loss expenses	  	 	2,128	 	 	 	2,494	 	 	 	1,773	 	 	 	1,706	 	 	 	2,119	 	 	 	8,101	 	 	 	7,302	 	
Policy acquisition costs	  	 	414	 	 	 	417	 	 	 	423	 	 	 	381	 	 	 	404	 	 	 	1,635	 	 	 	1,518	 	
Administrative expenses	  	 	315	 	 	 	301	 	 	 	306	 	 	 	328	 	 	 	332	 	 	 	1,250	 	 	 	1,215	 	
 	  				 				 				 				 				 				 				
P&C underwriting income (loss)	  	$	(67	)	 	$	(439	)	 	$	267	 	 	$	312	 	 	$	(127	)	 	$	73	 	 	$	329	 	
								
Financial Services underwriting income (loss)	  	 	—  	 	 	 	(58	)	 	 	14	 	 	 	1	 	 	 	(3	)	 	 	(43	)	 	 	70	 	
Life underwriting income excluding investment income	  	 	17	 	 	 	15	 	 	 	14	 	 	 	16	 	 	 	8	 	 	 	62	 	 	 	16	 	
Net investment income	  	 	354	 	 	 	320	 	 	 	305	 	 	 	285	 	 	 	282	 	 	 	1,264	 	 	 	1,013	 	
Net realized gains (losses)	  	 	(25	)	 	 	83	 	 	 	32	 	 	 	(14	)	 	 	130	 	 	 	76	 	 	 	197	 	
Interest expense	  	 	46	 	 	 	43	 	 	 	43	 	 	 	42	 	 	 	43	 	 	 	174	 	 	 	183	 	
Other (income) expense	  	 	(4	)	 	 	(25	)	 	 	(6	)	 	 	(5	)	 	 	1	 	 	 	(40	)	 	 	3	 	
Income tax expense (benefit)	  	 	—  	 	 	 	15	 	 	 	128	 	 	 	126	 	 	 	(32	)	 	 	269	 	 	 	286	 	
 	  				 				 				 				 				 				 				
Net income (loss)	  	$	237	 	 	$	(112	)	 	$	467	 	 	$	437	 	 	$	278	 	 	$	1,029	 	 	$	1,153	 	
								
Net realized gains (losses)	  	 	(25	)	 	 	83	 	 	 	32	 	 	 	(14	)	 	 	130	 	 	 	76	 	 	 	197	 	
Tax expense (benefit) on net realized gains (losses)	  	 	(17	)	 	 	8	 	 	 	8	 	 	 	4	 	 	 	12	 	 	 	3	 	 	 	44	 	
 	  				 				 				 				 				 				 				
Income (loss) excluding net realized gains (losses) (1)	  	$	245	 	 	$	(187	)	 	$	443	 	 	$	455	 	 	$	160	 	 	$	956	 	 	$	1,000	 	
 	  				 				 				 				 				 				 				
% Change versus prior year period (2) 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Property and Casualty net premiums written	  	 	2	%	 	 	-1	%	 	 	2	%	 	 	6	%	 	 	13	%	 	 	2	%	 	 	21	%	
Property and Casualty net premiums earned	  	 	2	%	 	 	3	%	 	 	7	%	 	 	16	%	 	 	17	%	 	 	7	%	 	 	23	%	
Property and Casualty net premiums written excluding CATS	  	 	2	%	 	 	1	%	 	 	 	 	 	 	 	 	 	 	 	 	 	 	3	%	 	 	 	 	
Property and Casualty net premiums earned excluding CATS	  	 	2	%	 	 	5	%	 	 	 	 	 	 	 	 	 	 	 	 	 	 	7	%	 	 	 	 	
								
Other ratios	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net premiums written/gross premiums written	  	 	69	%	 	 	66	%	 	 	68	%	 	 	73	%	 	 	72	%	 	 	69	%	 	 	70	%	
Effective tax rate on income excluding net realized gains (losses)	  	 	6	%	 	 	-4	%	 	 	21	%	 	 	21	%	 	 	-38	%	 	 	22	%	 	 	19	%	
 
(1)	See page 32 Non-GAAP Financial Measures.	
 
(2)	Property and casualty excluding Financial Services and Life is presented to allow for comparison and analysis with earnings guidance. This is a non-GAAP measure.	

Consolidated Results	  	Page 4	

			
	  	ACE Limited	
	  	Consolidated Results - Consecutive Quarters - 2	
	  	(in millions of U.S. dollars, except share and per share data)	
	  	(Unaudited)	
 
ACE Limited Consolidated

 	  	4Q-05
	 	 	3Q-05
	 	 	2Q-05
	 	 	1Q-05
	 	 	4Q-04
	 	 	Full Year
2005
	 	 	Full Year
2004
	 	
Combined ratio	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Loss and loss expense ratio	  	 	76.0	%	 	 	92.6	%	 	 	64.4	%	 	 	63.5	%	 	 	78.5	%	 	 	74.4	%	 	 	70.7	%	
Policy acquisition cost ratio	  	 	15.0	%	 	 	13.9	%	 	 	14.8	%	 	 	13.6	%	 	 	14.3	%	 	 	14.3	%	 	 	14.2	%	
Administrative expense ratio	  	 	11.4	%	 	 	10.1	%	 	 	10.9	%	 	 	11.8	%	 	 	11.8	%	 	 	11.0	%	 	 	11.5	%	
 	  				 				 				 				 				 				 				
Combined ratio	  	 	102.4	%	 	 	116.6	%	 	 	90.1	%	 	 	88.9	%	 	 	104.6	%	 	 	99.7	%	 	 	96.4	%	

Property and Casualty (1) 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
								
 	  	4Q-05
	 	 	3Q-05
	 	 	2Q-05
	 	 	1Q-05
	 	 	4Q-04
	 	 	YTD
2005
	 	 	YTD
2004
	 	
Combined ratio (1) 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Loss and loss expense ratio	  	 	76.3	%	 	 	90.0	%	 	 	64.0	%	 	 	62.5	%	 	 	77.7	%	 	 	73.2	%	 	 	70.5	%	
Policy acquisition cost ratio	  	 	14.8	%	 	 	15.1	%	 	 	15.2	%	 	 	14.0	%	 	 	14.9	%	 	 	14.8	%	 	 	14.7	%	
Administrative expense ratio	  	 	11.3	%	 	 	10.9	%	 	 	11.1	%	 	 	12.0	%	 	 	12.1	%	 	 	11.3	%	 	 	11.7	%	
 	  				 				 				 				 				 				 				
Combined ratio	  	 	102.4	%	 	 	116.0	%	 	 	90.3	%	 	 	88.5	%	 	 	104.7	%	 	 	99.3	%	 	 	96.9	%	
 	  				 				 				 				 				 				 				
Large losses and other items (1) 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Asbestos, environmental and other run-off losses	  	$	—  	 	 	$	—  	 	 	$	—  	 	 	$	—  	 	 	$	465	 	 	$	—  	 	 	$	465	 	
Catastrophe and other large losses (before tax)	  	$	360	 	 	$	756	 	 	$	—  	 	 	$	3	 	 	$	31	 	 	$	1,119	 	 	$	488	 	
Prior period development - unfavorable (favorable)	  	$	44	 	 	$	27	 	 	$	27	 	 	$	29	 	 	$	105	 	 	$	127	 	 	$	111	 	
 
(1)	Property and casualty excluding Financial Services and Life is presented to allow for comparison and analysis with earnings guidance. See Financial Services schedule for details related to that segment.	

Consolidated Results 2	  	Page 5	

 
			
	  	ACE Limited	
	  	Consolidated Results - Consecutive Quarters - 3	
	  	(in millions of U.S. dollars)	
	  	(Unaudited)	
 
ACE Limited Consolidated

 	  	3Q-04
	 	 	2Q-04
	 	 	1Q-04
	 	 	Full Year
2003
	 	
Property and Casualty (1)	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Gross premiums written	  	$	3,858	 	 	$	3,970	 	 	$	4,156	 	 	$	13,399	 	
Net premiums written	  	 	2,645	 	 	 	2,792	 	 	 	2,960	 	 	 	9,052	 	
Net premiums earned	  	 	2,686	 	 	 	2,593	 	 	 	2,357	 	 	 	8,453	 	
Losses and loss expenses	  	 	2,104	 	 	 	1,635	 	 	 	1,444	 	 	 	5,283	 	
Policy acquisition costs	  	 	384	 	 	 	381	 	 	 	349	 	 	 	1,272	 	
Administrative expenses	  	 	300	 	 	 	293	 	 	 	290	 	 	 	1,099	 	
 	  				 				 				 				
P& C underwriting income (loss)	  	$	(102	)	 	$	284	 	 	$	274	 	 	$	799	 	
					
Financial Services underwriting income (loss)	  	 	(11	)	 	 	26	 	 	 	58	 	 	 	58	 	
Life underwriting income (loss) excluding investment income	  	 	4	 	 	 	2	 	 	 	2	 	 	 	(18	)	
Net investment income	  	 	246	 	 	 	243	 	 	 	242	 	 	 	900	 	
Net realized gains (losses)	  	 	(32	)	 	 	42	 	 	 	57	 	 	 	265	 	
Interest expense	  	 	50	 	 	 	46	 	 	 	44	 	 	 	177	 	
Other (income) expense	  	 	(14	)	 	 	(1	)	 	 	17	 	 	 	34	 	
Income tax expense (benefit)	  	 	65	 	 	 	129	 	 	 	124	 	 	 	311	 	
 	  				 				 				 				
Net income (loss)	  	$	4	 	 	$	423	 	 	$	448	 	 	$	1,482	 	
					
Net realized gains (losses)	  	 	(32	)	 	 	42	 	 	 	57	 	 	 	265	 	
Tax expense (benefit) on net realized gains (losses)	  	 	1	 	 	 	10	 	 	 	21	 	 	 	32	 	
 	  				 				 				 				
Income excluding net realized gains (losses) (2)	  	$	37	 	 	$	391	 	 	$	412	 	 	$	1,249	 	
 	  				 				 				 				
Combined ratio	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Loss and loss expense ratio	  	 	79.4	%	 	 	63.2	%	 	 	60.3	%	 	 	64.6	%	
Policy acquisition cost ratio	  	 	13.8	%	 	 	14.3	%	 	 	14.2	%	 	 	14.0	%	
Administrative expense ratio	  	 	10.8	%	 	 	11.1	%	 	 	12.4	%	 	 	12.4	%	
 	  				 				 				 				
Combined ratio	  	 	104.0	%	 	 	88.6	%	 	 	86.9	%	 	 	91.0	%	
 	  				 				 				 				
Property and Casualty (1) 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Combined ratio (1) 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Loss and loss expense ratio	  	 	78.3	%	 	 	63.1	%	 	 	61.2	%	 	 	62.5	%	
Policy acquisition cost ratio	  	 	14.3	%	 	 	14.7	%	 	 	14.8	%	 	 	15.1	%	
Administrative expense ratio	  	 	11.2	%	 	 	11.3	%	 	 	12.3	%	 	 	13.0	%	
 	  				 				 				 				
Combined ratio	  	 	103.8	%	 	 	89.1	%	 	 	88.3	%	 	 	90.6	%	

(1)	Property and casualty excluding Financial Services and Life is presented to allow for comparison and analysis with earnings guidance.	
 
(2)	See page 32 Non-GAAP Financial Measures.	

Consolidated Results 3	  	Page 6	

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

 	  	December 31
2005
	  	September 30
2005
	  	June 30
2005
	  	March 31
2005
	  	December 31
2004
	
 	  	(Unaudited)	  	(Unaudited)	  	(Unaudited)	  	(Unaudited)	  	(Audited)	
Assets	  	 	 	  	 	 	  	 	 	  	 	 	  	 	 	
Fixed maturities available for sale, at fair value	  	$	24,285	  	$	22,551	  	$	21,136	  	$	20,336	  	$	22,891	
Fixed maturities held to maturity, at amortized cost	  	 	3,076	  	 	3,125	  	 	3,151	  	 	3,211	  	 	—  	
Equity securities, at fair value	  	 	1,507	  	 	1,436	  	 	1,380	  	 	1,351	  	 	1,265	
Short-term investments	  	 	2,299	  	 	2,212	  	 	2,476	  	 	2,156	  	 	2,163	
Other investments	  	 	755	  	 	651	  	 	628	  	 	622	  	 	606	
 	  			  			  			  			  			
Total investments	  	 	31,922	  	 	29,975	  	 	28,771	  	 	27,676	  	 	26,925	
						
Cash	  	 	512	  	 	409	  	 	651	  	 	574	  	 	498	
Securities lending collateral	  	 	1,723	  	 	1,438	  	 	958	  	 	1,255	  	 	1,059	
Insurance and reinsurance balances receivable	  	 	3,355	  	 	3,508	  	 	3,728	  	 	3,695	  	 	3,255	
Reinsurance recoverable	  	 	15,519	  	 	15,662	  	 	14,428	  	 	14,268	  	 	14,882	
Deferred policy acquisition costs	  	 	930	  	 	970	  	 	990	  	 	1,000	  	 	944	
Prepaid reinsurance premiums	  	 	1,346	  	 	1,441	  	 	1,434	  	 	1,427	  	 	1,355	
Goodwill	  	 	2,703	  	 	2,703	  	 	2,703	  	 	2,695	  	 	2,700	
Deferred tax assets	  	 	1,323	  	 	1,244	  	 	1,134	  	 	1,178	  	 	1,173	
Investments in partially owned insurance companies	  	 	859	  	 	862	  	 	832	  	 	816	  	 	796	
Other assets	  	 	2,327	  	 	2,333	  	 	2,494	  	 	2,425	  	 	2,596	
 	  			  			  			  			  			
Total assets	  	$	62,519	  	$	60,545	  	$	58,123	  	$	57,009	  	$	56,183	
 	  			  			  			  			  			
Liabilities	  	 	 	  	 	 	  	 	 	  	 	 	  	 	 	
Unpaid losses and loss expenses	  	$	35,090	  	$	34,674	  	$	32,101	  	$	31,426	  	$	31,483	
Unearned premiums	  	 	5,884	  	 	6,238	  	 	6,457	  	 	6,527	  	 	5,983	
Future policy benefits for life and annuity contracts	  	 	521	  	 	521	  	 	517	  	 	507	  	 	509	
Insurance and reinsurance balances payable	  	 	2,428	  	 	2,428	  	 	2,438	  	 	2,290	  	 	2,337	
Deposit liabilities	  	 	350	  	 	331	  	 	347	  	 	302	  	 	343	
Securities lending payable	  	 	1,723	  	 	1,438	  	 	958	  	 	1,255	  	 	1,059	
Payable for investments purchased	  	 	701	  	 	710	  	 	785	  	 	630	  	 	507	
Accounts payable, accrued expenses and other liabilities	  	 	1,600	  	 	1,554	  	 	1,613	  	 	1,694	  	 	1,710	
Short-term debt	  	 	300	  	 	446	  	 	147	  	 	147	  	 	146	
Long-term debt	  	 	1,811	  	 	1,564	  	 	1,849	  	 	1,849	  	 	1,849	
Trust preferred securities	  	 	309	  	 	412	  	 	412	  	 	412	  	 	412	
 	  			  			  			  			  			
Total liabilities	  	 	50,717	  	 	50,316	  	 	47,624	  	 	47,039	  	 	46,338	
						
Shareholders’ equity	  	 	 	  	 	 	  	 	 	  	 	 	  	 	 	
Total shareholders’ equity, excl. AOCI	  	 	11,481	  	 	9,788	  	 	9,947	  	 	9,522	  	 	9,111	
Accumulated other comprehensive income (AOCI)	  	 	321	  	 	441	  	 	552	  	 	448	  	 	734	
 	  			  			  			  			  			
Total shareholders’ equity	  	 	11,802	  	 	10,229	  	 	10,499	  	 	9,970	  	 	9,845	
 	  			  			  			  			  			
Total liabilities and shareholders’ equity	  	$	62,519	  	$	60,545	  	$	58,123	  	$	57,009	  	$	56,183	
 	  			  			  			  			  			
Book value per ordinary share (1) 	  	$	34.78	  	$	33.51	  	$	34.51	  	$	32.76	  	$	32.65	
Tangible book value per ordinary share (1) 	  	$	26.42	  	$	24.14	  	$	25.13	  	$	23.38	  	$	23.16	
 
(1)	See page 32 Non-GAAP Financial Measures.	

Consol Bal Sheet	  	Page 7	

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

 	  	4Q-05
	 	 	% of
Total
Consolidated
	 	 	4Q-04
	  	% of
Total
Consolidated
	 	 	% Change
4Q-05 vs.
4Q-04
	 	 	Full Year
2005
	  	% of
Total
Consolidated
	 	 	Full Year
2004
	  	% of
Total
Consolidated
	 	 	% Change
2005 vs.
2004
	 	
Net premiums written	  	 	 	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	 	  	 	 	 	 	 	  	 	 	 	 	 	
Property and all other	  	$	619	 	 	24	%	 	$	708	  	27	%	 	-13	%	 	$	3,160	  	27	%	 	$	3,507	  	30	%	 	-10	%	
Casualty	  	 	1,671	 	 	63	%	 	 	1,560	  	59	%	 	7	%	 	 	6,768	  	57	%	 	 	6,314	  	55	%	 	7	%	
Personal accident	  	 	310	 	 	11	%	 	 	289	  	11	%	 	7	%	 	 	1,267	  	11	%	 	 	1,133	  	10	%	 	12	%	
 	  				 			 			  			 			 			  			 			  			 			
Total P&C	  	 	2,600	 	 	98	%	 	 	2,557	  	97	%	 	2	%	 	 	11,195	  	95	%	 	 	10,954	  	95	%	 	2	%	
 	  				 			 			  			 			 			  			 			  			 			
Life	  	 	67	 	 	3	%	 	 	57	  	2	%	 	18	%	 	 	248	  	2	%	 	 	226	  	2	%	 	10	%	
Financial Services	  	 	(35	)	 	-1	%	 	 	27	  	1	%	 	-230	%	 	 	353	  	3	%	 	 	316	  	3	%	 	12	%	
 	  				 			 			  			 			 			  			 			  			 			
Total Consolidated	  	$	2,632	 	 	100	%	 	$	2,641	  	100	%	 	0	%	 	$	11,796	  	100	%	 	$	11,496	  	100	%	 	3	%	
 	  				 			 			  			 			 			  			 			  			 			
Net premiums earned	  	 	 	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	 	  	 	 	 	 	 	  	 	 	 	 	 	
Property and all other	  	$	809	 	 	29	%	 	$	884	  	31	%	 	-8	%	 	$	3,250	  	28	%	 	$	3,425	  	31	%	 	-5	%	
Casualty	  	 	1,667	 	 	58	%	 	 	1,547	  	54	%	 	8	%	 	 	6,567	  	56	%	 	 	5,806	  	52	%	 	13	%	
Personal accident	  	 	314	 	 	11	%	 	 	297	  	10	%	 	6	%	 	 	1,242	  	10	%	 	 	1,133	  	10	%	 	10	%	
 	  				 			 			  			 			 			  			 			  			 			
Total P&C	  	 	2,790	 	 	98	%	 	 	2,728	  	95	%	 	2	%	 	 	11,059	  	94	%	 	 	10,364	  	93	%	 	7	%	
 	  				 			 			  			 			 			  			 			  			 			
Life	  	 	67	 	 	2	%	 	 	57	  	2	%	 	18	%	 	 	248	  	2	%	 	 	226	  	2	%	 	10	%	
Financial Services	  	 	6	 	 	0	%	 	 	96	  	3	%	 	-94	%	 	 	445	  	4	%	 	 	520	  	5	%	 	-14	%	
 	  				 			 			  			 			 			  			 			  			 			
Total Consolidated	  	$	2,863	 	 	100	%	 	$	2,881	  	100	%	 	-1	%	 	$	11,752	  	100	%	 	$	11,110	  	100	%	 	6	%	

			
Line of Business	  	Page 8	

			
	  	ACE Limited	
	  	Consolidating Statement of Operations	
	  	Three months ended December 31, 2005 and 2004	
	  	(in millions of U.S. dollars)	
	  	(Unaudited)	

 	  	Insurance -
North
American
	 	 	Insurance -
Overseas
General
	 	 	Global
Reinsurance
	 	 	Corporate
& Other
	 	 	Consolidated
P&C
	 	 	Financial
Services
	 	 	Life
	 	 	ACE
Consolidated
	 	
December 31, 2005	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Gross premiums written	  	$	2,090	 	 	$	1,388	 	 	$	283	 	 	$	—  	 	 	$	3,761	 	 	$	(31	)	 	$	67	 	 	$	3,797	 	
Net premiums written	  	 	1,310	 	 	 	1,014	 	 	 	276	 	 	 	—  	 	 	 	2,600	 	 	 	(35	)	 	 	67	 	 	 	2,632	 	
Net premiums earned	  	 	1,347	 	 	 	1,048	 	 	 	395	 	 	 	—  	 	 	 	2,790	 	 	 	6	 	 	 	67	 	 	 	2,863	 	
Losses and loss expenses	  	 	1,094	 	 	 	679	 	 	 	354	 	 	 	1	 	 	 	2,128	 	 	 	(4	)	 	 	—  	 	 	 	2,124	 	
Life and annuity benefits	  	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	35	 	 	 	35	 	
Policy acquisition costs	  	 	111	 	 	 	224	 	 	 	79	 	 	 	—  	 	 	 	414	 	 	 	6	 	 	 	7	 	 	 	427	 	
Administrative expenses	  	 	117	 	 	 	137	 	 	 	13	 	 	 	48	 	 	 	315	 	 	 	4	 	 	 	8	 	 	 	327	 	
 	  				 				 				 				 				 				 				 				
Underwriting income (loss)	  	 	25	 	 	 	8	 	 	 	(51	)	 	 	(49	)	 	 	(67	)	 	 	—  	 	 	 	17	 	 	 	(50	)	
									
Net investment income	  	 	153	 	 	 	83	 	 	 	49	 	 	 	26	 	 	 	311	 	 	 	36	 	 	 	7	 	 	 	354	 	
Net realized gains (losses)	  	 	(19	)	 	 	(18	)	 	 	(11	)	 	 	14	 	 	 	(34	)	 	 	6	 	 	 	3	 	 	 	(25	)	
Interest expense	  	 	5	 	 	 	—  	 	 	 	1	 	 	 	40	 	 	 	46	 	 	 	—  	 	 	 	—  	 	 	 	46	 	
Other (income) expense	  	 	6	 	 	 	—  	 	 	 	1	 	 	 	(1	)	 	 	6	 	 	 	(10	)	 	 	—  	 	 	 	(4	)	
Income tax expense (benefit)	  	 	33	 	 	 	(17	)	 	 	5	 	 	 	(14	)	 	 	7	 	 	 	(7	)	 	 	—  	 	 	 	—  	 	
 	  				 				 				 				 				 				 				 				
Net income (loss)	  	 	115	 	 	 	90	 	 	 	(20	)	 	 	(34	)	 	 	151	 	 	 	59	 	 	 	27	 	 	 	237	 	
									
Net realized gains (losses)	  	 	(19	)	 	 	(18	)	 	 	(11	)	 	 	14	 	 	 	(34	)	 	 	6	 	 	 	3	 	 	 	(25	)	
									
Tax expense (benefit) on net realized gains (losses)	  	 	(9	)	 	 	(4	)	 	 	(1	)	 	 	—  	 	 	 	(14	)	 	 	(3	)	 	 	—  	 	 	 	(17	)	
 	  				 				 				 				 				 				 				 				
Income (loss) excluding net realized gains (losses) (1)	  	$	125	 	 	$	104	 	 	$	(10	)	 	$	(48	)	 	$	171	 	 	$	50	 	 	$	24	 	 	$	245	 	
 	  				 				 				 				 				 				 				 				
December 31, 2004	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Gross premiums written	  	$	1,885	 	 	$	1,389	 	 	$	286	 	 	$	—  	 	 	$	3,560	 	 	$	29	 	 	$	57	 	 	$	3,646	 	
Net premiums written	  	 	1,194	 	 	 	1,083	 	 	 	280	 	 	 	—  	 	 	 	2,557	 	 	 	27	 	 	 	57	 	 	 	2,641	 	
Net premiums earned	  	 	1,243	 	 	 	1,126	 	 	 	359	 	 	 	—  	 	 	 	2,728	 	 	 	96	 	 	 	57	 	 	 	2,881	 	
Losses and loss expenses	  	 	1,366	 	 	 	547	 	 	 	204	 	 	 	2	 	 	 	2,119	 	 	 	97	 	 	 	—  	 	 	 	2,216	 	
Life and annuity benefits	  	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	39	 	 	 	39	 	
Policy acquisition costs	  	 	114	 	 	 	222	 	 	 	68	 	 	 	—  	 	 	 	404	 	 	 	1	 	 	 	6	 	 	 	411	 	
Administrative expenses	  	 	128	 	 	 	132	 	 	 	15	 	 	 	57	 	 	 	332	 	 	 	1	 	 	 	4	 	 	 	337	 	
 	  				 				 				 				 				 				 				 				
Underwriting income (loss)	  	 	(365	)	 	 	225	 	 	 	72	 	 	 	(59	)	 	 	(127	)	 	 	(3	)	 	 	8	 	 	 	(122	)	
									
Net investment income	  	 	132	 	 	 	65	 	 	 	38	 	 	 	9	 	 	 	244	 	 	 	29	 	 	 	9	 	 	 	282	 	
Net realized gains (losses)	  	 	35	 	 	 	18	 	 	 	13	 	 	 	(2	)	 	 	64	 	 	 	12	 	 	 	54	 	 	 	130	 	
Interest expense	  	 	5	 	 	 	—  	 	 	 	—  	 	 	 	38	 	 	 	43	 	 	 	—  	 	 	 	—  	 	 	 	43	 	
Other (income) expense	  	 	2	 	 	 	15	 	 	 	(1	)	 	 	—  	 	 	 	16	 	 	 	(15	)	 	 	—  	 	 	 	1	 	
Income tax expense (benefit)	  	 	(100	)	 	 	86	 	 	 	11	 	 	 	(31	)	 	 	(34	)	 	 	3	 	 	 	(1	)	 	 	(32	)	
 	  				 				 				 				 				 				 				 				
Net income (loss)	  	 	(105	)	 	 	207	 	 	 	113	 	 	 	(59	)	 	 	156	 	 	 	50	 	 	 	72	 	 	 	278	 	
									
Net realized gains (losses)	  	 	35	 	 	 	18	 	 	 	13	 	 	 	(2	)	 	 	64	 	 	 	12	 	 	 	54	 	 	 	130	 	
Tax expense (benefit) on net realized gains (losses)	  	 	5	 	 	 	5	 	 	 	—  	 	 	 	—  	 	 	 	10	 	 	 	2	 	 	 	—  	 	 	 	12	 	
 	  				 				 				 				 				 				 				 				
Income (loss) excluding net realized gains (losses) (1)	  	$	(135	)	 	$	194	 	 	$	100	 	 	$	(57	)	 	$	102	 	 	$	40	 	 	$	18	 	 	$	160	 	

(1)	See page 32 Non-GAAP Financial Measures.	

Segment 2005 Qtr	  	Page 9	

			
	  	ACE Limited	
	  	Consolidating Statement of Operations	
	  	Year ended December 31, 2005 and 2004	
	  	(in millions of U.S. dollars)	
	  	(Unaudited)	

 	  	Insurance -
North
American
	 	 	Insurance -
Overseas
General
	  	Global
Reinsurance
	 	 	Corporate
& Other
	 	 	Consolidated
P&C
	  	Financial
Services
	 	 	Life
	 	 	ACE
Consolidated
	 	
December 31, 2005	  	 	 	 	 	 	 	  	 	 	 	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	
Gross premiums written	  	$	8,834	 	 	$	5,775	  	$	1,599	 	 	$	—  	 	 	$	16,208	  	$	358	 	 	$	248	 	 	$	16,814	 	
Net premiums written	  	 	5,454	 	 	 	4,195	  	 	1,546	 	 	 	—  	 	 	 	11,195	  	 	353	 	 	 	248	 	 	 	11,796	 	
Net premiums earned	  	 	5,289	 	 	 	4,239	  	 	1,531	 	 	 	—  	 	 	 	11,059	  	 	445	 	 	 	248	 	 	 	11,752	 	
Losses and loss expenses	  	 	4,107	 	 	 	2,583	  	 	1,402	 	 	 	9	 	 	 	8,101	  	 	459	 	 	 	—  	 	 	 	8,560	 	
Life and annuity benefits	  	 	—  	 	 	 	—  	  	 	—  	 	 	 	—  	 	 	 	—  	  	 	—  	 	 	 	143	 	 	 	143	 	
Policy acquisition costs	  	 	492	 	 	 	836	  	 	307	 	 	 	—  	 	 	 	1,635	  	 	11	 	 	 	24	 	 	 	1,670	 	
Administrative expenses	  	 	435	 	 	 	566	  	 	60	 	 	 	189	 	 	 	1,250	  	 	18	 	 	 	19	 	 	 	1,287	 	
 	  				 			  				 				 			  				 				 				
Underwriting income (loss)	  	 	255	 	 	 	254	  	 	(238	)	 	 	(198	)	 	 	73	  	 	(43	)	 	 	62	 	 	 	92	 	
									
Net investment income	  	 	565	 	 	 	319	  	 	173	 	 	 	38	 	 	 	1,095	  	 	133	 	 	 	36	 	 	 	1,264	 	
Net realized gains (losses)	  	 	(6	)	 	 	51	  	 	(4	)	 	 	(6	)	 	 	35	  	 	22	 	 	 	19	 	 	 	76	 	
Interest expense	  	 	21	 	 	 	—  	  	 	3	 	 	 	150	 	 	 	174	  	 	—  	 	 	 	—  	 	 	 	174	 	
Other (income) expense	  	 	6	 	 	 	16	  	 	4	 	 	 	(1	)	 	 	25	  	 	(65	)	 	 	—  	 	 	 	(40	)	
Income tax expense (benefit)	  	 	204	 	 	 	107	  	 	11	 	 	 	(67	)	 	 	255	  	 	16	 	 	 	(2	)	 	 	269	 	
 	  				 			  				 				 			  				 				 				
Net income (loss)	  	 	583	 	 	 	501	  	 	(87	)	 	 	(248	)	 	 	749	  	 	161	 	 	 	119	 	 	 	1,029	 	
									
Net realized gains (losses)	  	 	(6	)	 	 	51	  	 	(4	)	 	 	(6	)	 	 	35	  	 	22	 	 	 	19	 	 	 	76	 	
Tax expense (benefit) on net realized gains (losses)	  	 	(8	)	 	 	13	  	 	—  	 	 	 	—  	 	 	 	5	  	 	(2	)	 	 	—  	 	 	 	3	 	
 	  				 			  				 				 			  				 				 				
Income (loss) excluding net realized gains (losses) (1)	  	$	581	 	 	$	463	  	$	(83	)	 	$	(242	)	 	$	719	  	$	137	 	 	$	100	 	 	$	956	 	
 	  				 			  				 				 			  				 				 				
December 31, 2004	  	 	 	 	 	 	 	  	 	 	 	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	
Gross premiums written	  	$	8,126	 	 	$	5,851	  	$	1,567	 	 	$	—  	 	 	$	15,544	  	$	320	 	 	$	230	 	 	$	16,094	 	
Net premiums written	  	 	5,101	 	 	 	4,335	  	 	1,518	 	 	 	—  	 	 	 	10,954	  	 	316	 	 	 	226	 	 	 	11,496	 	
Net premiums earned	  	 	4,679	 	 	 	4,296	  	 	1,389	 	 	 	—  	 	 	 	10,364	  	 	520	 	 	 	226	 	 	 	11,110	 	
Losses and loss expenses	  	 	3,898	 	 	 	2,423	  	 	973	 	 	 	8	 	 	 	7,302	  	 	388	 	 	 	—  	 	 	 	7,690	 	
Life and annuity benefits	  	 	—  	 	 	 	—  	  	 	—  	 	 	 	—  	 	 	 	—  	  	 	—  	 	 	 	175	 	 	 	175	 	
Policy acquisition costs	  	 	447	 	 	 	800	  	 	271	 	 	 	—  	 	 	 	1,518	  	 	23	 	 	 	24	 	 	 	1,565	 	
Administrative expenses	  	 	451	 	 	 	544	  	 	65	 	 	 	155	 	 	 	1,215	  	 	39	 	 	 	11	 	 	 	1,265	 	
 	  				 			  				 				 			  				 				 				
Underwriting income (loss)	  	 	(117	)	 	 	529	  	 	80	 	 	 	(163	)	 	 	329	  	 	70	 	 	 	16	 	 	 	415	 	
									
Net investment income	  	 	469	 	 	 	224	  	 	126	 	 	 	14	 	 	 	833	  	 	147	 	 	 	33	 	 	 	1,013	 	
Net realized gains (losses)	  	 	126	 	 	 	47	  	 	27	 	 	 	7	 	 	 	207	  	 	(17	)	 	 	7	 	 	 	197	 	
Interest expense	  	 	21	 	 	 	—  	  	 	—  	 	 	 	157	 	 	 	178	  	 	5	 	 	 	—  	 	 	 	183	 	
Other (income) expense	  	 	5	 	 	 	25	  	 	(1	)	 	 	(1	)	 	 	28	  	 	(25	)	 	 	—  	 	 	 	3	 	
Income tax expense (benefit)	  	 	82	 	 	 	232	  	 	14	 	 	 	(75	)	 	 	253	  	 	35	 	 	 	(2	)	 	 	286	 	
 	  				 			  				 				 			  				 				 				
Net income (loss)	  	 	370	 	 	 	543	  	 	220	 	 	 	(223	)	 	 	910	  	 	185	 	 	 	58	 	 	 	1,153	 	
									
Net realized gains (losses)	  	 	126	 	 	 	47	  	 	27	 	 	 	7	 	 	 	207	  	 	(17	)	 	 	7	 	 	 	197	 	
Tax expense (benefit) on net realized gains (losses)	  	 	22	 	 	 	14	  	 	—  	 	 	 	—  	 	 	 	36	  	 	8	 	 	 	—  	 	 	 	44	 	
 	  				 			  				 				 			  				 				 				
Income (loss) excluding net realized gains (losses) (1)	  	$	266	 	 	$	510	  	$	193	 	 	$	(230	)	 	$	739	  	$	210	 	 	$	51	 	 	$	1,000	 	

(1)	See page 32 Non-GAAP Financial Measures.	

Segment 2005 YTD	  	Page 10	

 
			
	  	ACE Limited	
	  	Segment Results - Catastrophe Loss Charges	
	  	(in millions of U.S. dollars)	
	  	(Unaudited)	
 
Fourth Quarter Catastrophe Loss Charges – 2005

 	  	Insurance -
North
American
	 	 	Insurance -
Overseas
General
	 	 	Global
Reinsurance
	 	 	Consolidated
P&C
	 	 	Financial
Services
	 	 	Total
	 	 	Total impact
after income
tax
	 	
Catastrophe Loss Charges- By Event	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Gross loss	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	$	585	 	 	 	 	 	
Net loss	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Hurricane - Dennis	  	$	—  	 	 	$	(3	)	 	$	(13	)	 	$	(16	)	 	$	—  	 	 	$	(16	)	 	$	(14	)	
Hurricane - Katrina	  	 	41	 	 	 	16	 	 	 	16	 	 	 	73	 	 	 	(45	)	 	 	28	 	 	 	40	 	
Hurricane - Rita	  	 	3	 	 	 	4	 	 	 	20	 	 	 	27	 	 	 	15	 	 	 	42	 	 	 	34	 	
Hurricane - Wilma	  	 	70	 	 	 	63	 	 	 	152	 	 	 	285	 	 	 	30	 	 	 	315	 	 	 	251	 	
Other (1)	  	 	—  	 	 	 	—  	 	 	 	(9	)	 	 	(9	)	 	 	—  	 	 	 	(9	)	 	 	(7	)	
 	  				 				 				 				 				 				 				
Total	  	$	114	 	 	$	80	 	 	$	166	 	 	$	360	 	 	$	—  	 	 	$	360	 	 	$	304	 	
 	  				 				 				 				 				 				 				
Reinstatement premiums (earned) expensed	  	$	17	 	 	$	2	 	 	$	(19	)	 	$	—  	 	 	$	—  	 	 	$	—  	 	 	 	 	 	
Premiums expensed on multi-year contracts	  	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	15	 	 	 	15	 	 	 	 	 	
 	  				 				 				 				 				 				 	 	 	 	
Net premium (earned) expensed	  	$	17	 	 	$	2	 	 	$	(19	)	 	$	—  	 	 	$	15	 	 	$	15	 	 	 	 	 	
 	  				 				 				 				 				 				 	 	 	 	
Total impact before income tax	  	$	131	 	 	$	82	 	 	$	147	 	 	$	360	 	 	$	15	 	 	$	375	 	 	 	 	 	
Income tax benefit	  	 	(41	)	 	 	(24	)	 	 	(6	)	 	 	(71	)	 	 	—  	 	 	 	(71	)	 	 	 	 	
 	  				 				 				 				 				 				 	 	 	 	
Total impact after income tax	  	$	90	 	 	$	58	 	 	$	141	 	 	$	289	 	 	$	15	 	 	$	304	 	 	 	 	 	
 	  				 				 				 				 				 				 	 	 	 	
Effective tax rate	  	 	31	%	 	 	29	%	 	 	4	%	 	 	20	%	 	 	0	%	 	 	19	%	 	 	 	 	
								
Full Year Catastrophe Loss Charges - 2005	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
								
Gross loss	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	$	2,954	 	 	 	 	 	
Net loss	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Q1 Storms	  	$	—  	 	 	$	—  	 	 	$	3	 	 	$	3	 	 	$	—  	 	 	$	3	 	 	$	3	 	
Hurricane - Dennis	  	 	12	 	 	 	2	 	 	 	12	 	 	 	26	 	 	 	—  	 	 	 	26	 	 	 	21	 	
Hurricane - Katrina	  	 	180	 	 	 	86	 	 	 	335	 	 	 	601	 	 	 	195	 	 	 	796	 	 	 	598	 	
Hurricane - Rita	  	 	55	 	 	 	50	 	 	 	89	 	 	 	194	 	 	 	15	 	 	 	209	 	 	 	165	 	
Hurricane - Wilma	  	 	70	 	 	 	63	 	 	 	152	 	 	 	285	 	 	 	30	 	 	 	315	 	 	 	251	 	
Other (1)	  	 	—  	 	 	 	—  	 	 	 	10	 	 	 	10	 	 	 	—  	 	 	 	10	 	 	 	11	 	
 	  				 				 				 				 				 				 				
Total	  	$	317	 	 	$	201	 	 	$	601	 	 	$	1,119	 	 	$	240	 	 	$	1,359	 	 	$	1,049	 	
 	  				 				 				 				 				 				 				
Reinstatement premiums (earned) expensed	  	$	76	 	 	$	38	 	 	$	(46	)	 	$	68	 	 	$	—  	 	 	$	68	 	 	 	 	 	
Premiums earned on multi-year contracts	  	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	(148	)	 	 	(148	)	 	 	 	 	
 	  				 				 				 				 				 				 	 	 	 	
Net premium (earned) expensed	  	$	76	 	 	$	38	 	 	$	(46	)	 	$	68	 	 	$	(148	)	 	$	(80	)	 	 	 	 	
 	  				 				 				 				 				 				 	 	 	 	
Total impact before income tax	  	$	393	 	 	$	239	 	 	$	555	 	 	$	1,187	 	 	$	92	 	 	$	1,279	 	 	 	 	 	
Income tax benefit	  	 	(128	)	 	 	(71	)	 	 	(31	)	 	 	(230	)	 	 	—  	 	 	 	(230	)	 	 	 	 	
 	  				 				 				 				 				 				 	 	 	 	
Total impact after income tax	  	$	265	 	 	$	168	 	 	$	524	 	 	$	957	 	 	$	92	 	 	$	1,049	 	 	 	 	 	
 	  				 				 				 				 				 				 	 	 	 	
Effective tax rate	  	 	33	%	 	 	30	%	 	 	6	%	 	 	19	%	 	 	0	%	 	 	18	%	 	 	 	 	
 
(1)	Includes Ophelia, Nabi and European floods.	

Catastrophe Losses	  	Page 11	

			
	  	ACE Limited	
	  	Segment Results - Catastrophe Loss Charges -2	
	  	(in millions of U.S. dollars)	
	  	(Unaudited)	
 
Fourth Quarter Catastrophe Loss Charges - 2004

 	  	Insurance -
North
American
	 	 	Insurance -
Overseas
General
	 	 	Global
Reinsurance
	 	 	Consolidated
P&C
	 	 	Financial
Services
	 	 	Total
	 	
Catastrophe Loss Charges- By Event	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
							
Net loss	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Hurricane - Charley	  	$	—  	 	 	$	—  	 	 	$	(1	)	 	$	(1	)	 	$	—  	 	 	$	(1	)	
Hurricane - Frances	  	 	—  	 	 	 	—  	 	 	 	17	 	 	 	17	 	 	 	—  	 	 	 	17	 	
Hurricane - Ivan	  	 	—  	 	 	 	—  	 	 	 	(5	)	 	 	(5	)	 	 	—  	 	 	 	(5	)	
Hurricane - Jeanne	  	 	—  	 	 	 	—  	 	 	 	8	 	 	 	8	 	 	 	—  	 	 	 	8	 	
Typhoons	  	 	—  	 	 	 	—  	 	 	 	4	 	 	 	4	 	 	 	—  	 	 	 	4	 	
Other	  	 	—  	 	 	 	—  	 	 	 	8	 	 	 	8	 	 	 	—  	 	 	 	8	 	
 	  				 				 				 				 				 				
Total	  	$	—  	 	 	$	—  	 	 	$	31	 	 	$	31	 	 	$	—  	 	 	$	31	 	
 	  				 				 				 				 				 				
Reinstatement premiums (earned) expensed	  	$	—  	 	 	$	—  	 	 	$	—  	 	 	$	—  	 	 	$	—  	 	 	$	—  	 	
 	  				 				 				 				 				 				
Total impact before income tax	  	$	—  	 	 	$	—  	 	 	$	31	 	 	$	31	 	 	$	—  	 	 	$	31	 	
Income tax benefit	  	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	
 	  				 				 				 				 				 				
Total impact after income tax	  	$	—  	 	 	$	—  	 	 	$	31	 	 	$	31	 	 	$	—  	 	 	$	31	 	
 	  				 				 				 				 				 				
Full Year Catastrophe Loss Charges - 2004	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
							
Net loss	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Hurricane - Charley	  	$	31	 	 	$	—  	 	 	$	64	 	 	$	95	 	 	$	—  	 	 	$	95	 	
Hurricane - Frances	  	 	22	 	 	 	6	 	 	 	65	 	 	 	93	 	 	 	5	 	 	 	98	 	
Hurricane - Ivan	  	 	40	 	 	 	20	 	 	 	71	 	 	 	131	 	 	 	5	 	 	 	136	 	
Hurricane - Jeanne	  	 	33	 	 	 	18	 	 	 	71	 	 	 	122	 	 	 	1	 	 	 	123	 	
Typhoons	  	 	—  	 	 	 	9	 	 	 	30	 	 	 	39	 	 	 	—  	 	 	 	39	 	
Other	  	 	—  	 	 	 	—  	 	 	 	8	 	 	 	8	 	 	 	—  	 	 	 	8	 	
 	  				 				 				 				 				 				
Total	  	$	126	 	 	$	53	 	 	$	309	 	 	$	488	 	 	$	11	 	 	$	499	 	
 	  				 				 				 				 				 				
Reinstatement premiums (earned) expensed	  	$	13	 	 	$	13	 	 	$	(15	)	 	$	11	 	 	$	—  	 	 	$	11	 	
 	  				 				 				 				 				 				
Total impact before income tax	  	$	139	 	 	$	66	 	 	$	294	 	 	$	499	 	 	$	11	 	 	$	510	 	
Income tax benefit	  	 	(41	)	 	 	(21	)	 	 	(11	)	 	 	(73	)	 	 	—  	 	 	 	(73	)	
 	  				 				 				 				 				 				
Total impact after income tax	  	$	98	 	 	$	45	 	 	$	283	 	 	$	426	 	 	$	11	 	 	$	437	 	
 	  				 				 				 				 				 				
Effective tax rate	  	 	29	%	 	 	32	%	 	 	4	%	 	 	15	%	 	 	0	%	 	 	14	%	

Catastrophe Losses 2	  	Page 12	

			
	  	ACE Limited	
	  	Loss Analysis (1) 	
	  	(in millions of U.S. dollars)	
	  	(Unaudited)	

 	  	Insurance -
North
American
	 	 	Insurance -
Overseas
General
	 	 	Global
Reinsurance
	 	 	Consolidated
P&C
	 	 	Financial
Services
	 	 	Life
	  	ACE
Consolidated
	 	
Fourth Quarter - 2005	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	  	 	 	 	
Net Premium Written as reported	  	$	1,310	 	 	$	1,014	 	 	$	276	 	 	$	2,600	 	 	$	(35	)	 	$	67	  	$	2,632	 	
Catastrophe Impact	  	 	17	 	 	 	2	 	 	 	(19	)	 	 	—  	 	 	 	19	 	 	 	—  	  	 	19	 	
 	  				 				 				 				 				 			  				
Net Premium Written excluding Catastrophes	  	 	1,327	 	 	 	1,016	 	 	 	257	 	 	 	2,600	 	 	 	(16	)	 	 	67	  	 	2,651	 	
Net Premium Earned as reported	  	$	1,347	 	 	$	1,048	 	 	$	395	 	 	$	2,790	 	 	$	6	 	 	$	67	  	$	2,863	 	
Catastrophe Impact	  	 	17	 	 	 	2	 	 	 	(19	)	 	 	—  	 	 	 	15	 	 	 	—  	  	 	15	 	
 	  				 				 				 				 				 			  				
Net Premium Earned excluding Catastrophes	  	 	1,364	 	 	 	1,050	 	 	 	376	 	 	 	2,790	 	 	 	21	 	 	 	67	  	 	2,878	 	
Loss Ratio as reported	  	 	81.2	%	 	 	64.8	%	 	 	89.6	%	 	 	76.3	%	 	 	 	 	 	 	 	  	 	76.0	%	
Catastrophe Impact	  	 	9.4	%	 	 	7.8	%	 	 	39.6	%	 	 	12.9	%	 	 	 	 	 	 	 	  	 	12.6	%	
 	  				 				 				 				 	 	 	 	 	 	 	  				
Loss Ratio excluding Catastrophes	  	 	71.8	%	 	 	57.0	%	 	 	50.0	%	 	 	63.4	%	 	 	 	 	 	 	 	  	 	63.4	%	
Expense Ratio as reported	  	 	16.8	%	 	 	34.5	%	 	 	23.4	%	 	 	26.1	%	 	 	 	 	 	 	 	  	 	26.4	%	
Catastrophe Impact	  	 	0.1	%	 	 	0.0	%	 	 	-1.2	%	 	 	0.0	%	 	 	 	 	 	 	 	  	 	-0.1	%	
 	  				 				 				 				 	 	 	 	 	 	 	  				
Expense Ratio excluding Catastrophes	  	 	16.7	%	 	 	34.5	%	 	 	24.6	%	 	 	26.1	%	 	 	 	 	 	 	 	  	 	26.5	%	
Combined Ratio as reported	  	 	98.0	%	 	 	99.3	%	 	 	113.0	%	 	 	102.4	%	 	 	 	 	 	 	 	  	 	102.4	%	
Catastrophe Impact	  	 	9.5	%	 	 	7.8	%	 	 	38.4	%	 	 	12.9	%	 	 	 	 	 	 	 	  	 	12.5	%	
 	  				 				 				 				 	 	 	 	 	 	 	  				
Combined Ratio excluding Catastrophes	  	 	88.5	%	 	 	91.5	%	 	 	74.6	%	 	 	89.5	%	 	 	 	 	 	 	 	  	 	89.9	%	
								
Full Year - 2005	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	  	 	 	 	
Net Premium Written as reported	  	$	5,454	 	 	$	4,195	 	 	$	1,546	 	 	$	11,195	 	 	$	353	 	 	$	248	  	$	11,796	 	
Catastrophe Impact	  	 	76	 	 	 	38	 	 	 	(46	)	 	 	68	 	 	 	(112	)	 	 	—  	  	 	(44	)	
 	  				 				 				 				 				 			  				
Net Premium Written excluding Catastrophes	  	 	5,530	 	 	 	4,233	 	 	 	1,500	 	 	 	11,263	 	 	 	241	 	 	 	248	  	 	11,752	 	
Net Premium Earned as reported	  	$	5,289	 	 	$	4,239	 	 	$	1,531	 	 	$	11,059	 	 	$	445	 	 	$	248	  	$	11,752	 	
Catastrophe Impact	  	 	76	 	 	 	38	 	 	 	(46	)	 	 	68	 	 	 	(148	)	 	 	—  	  	 	(80	)	
 	  				 				 				 				 				 			  				
Net Premium Earned excluding Catastrophes	  	 	5,365	 	 	 	4,277	 	 	 	1,485	 	 	 	11,127	 	 	 	297	 	 	 	248	  	 	11,672	 	
Loss Ratio as reported	  	 	77.7	%	 	 	60.9	%	 	 	91.6	%	 	 	73.2	%	 	 	103.0	%	 	 	 	  	 	74.4	%	
Catastrophe Impact	  	 	7.1	%	 	 	5.2	%	 	 	37.7	%	 	 	10.5	%	 	 	29.5	%	 	 	 	  	 	11.4	%	
 	  				 				 				 				 				 	 	 	  				
Loss Ratio excluding Catastrophes	  	 	70.6	%	 	 	55.7	%	 	 	53.9	%	 	 	62.7	%	 	 	73.5	%	 	 	 	  	 	63.0	%	
Expense Ratio as reported	  	 	17.5	%	 	 	33.1	%	 	 	24.0	%	 	 	26.1	%	 	 	6.6	%	 	 	 	  	 	25.3	%	
Catastrophe Impact	  	 	0.2	%	 	 	0.3	%	 	 	-0.7	%	 	 	0.1	%	 	 	-3.2	%	 	 	 	  	 	-0.2	%	
 	  				 				 				 				 				 	 	 	  				
Expense Ratio excluding Catastrophes	  	 	17.3	%	 	 	32.8	%	 	 	24.7	%	 	 	26.0	%	 	 	9.8	%	 	 	 	  	 	25.5	%	
Combined Ratio as reported	  	 	95.2	%	 	 	94.0	%	 	 	115.6	%	 	 	99.3	%	 	 	109.6	%	 	 	 	  	 	99.7	%	
Catastrophe Impact	  	 	7.3	%	 	 	5.5	%	 	 	37.0	%	 	 	10.6	%	 	 	26.3	%	 	 	 	  	 	11.2	%	
 	  				 				 				 				 				 	 	 	  				
Combined Ratio excluding Catastrophes	  	 	87.9	%	 	 	88.5	%	 	 	78.6	%	 	 	88.7	%	 	 	83.3	%	 	 	 	  	 	88.5	%	
 
(1)	See page 32 Non-GAAP Financial Measures.	

Loss Analysis	  	Page 13	

			
	  	ACE Limited	
	  	Loss Analysis (1) - 2	
	  	(in millions of U.S. dollars)	
	  	(Unaudited)	

 	  	Insurance -
North
American
	 	 	Insurance -
Overseas
General
	 	 	Global
Reinsurance
	 	 	Consolidated
P&C
	 	 	Financial
Services
	 	 	Life
	  	ACE
Consolidated
	 	
Fourth Quarter - 2004	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	  	 	 	 	
Net Premium Written as reported	  	$	1,194	 	 	$	1,083	 	 	$	280	 	 	$	2,557	 	 	$	27	 	 	$	57	  	$	2,641	 	
Catastrophe Impact	  	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	  	 	—  	 	
 	  				 				 				 				 				 			  				
Net Premium Written excluding Catastrophes	  	 	1,194	 	 	 	1,083	 	 	 	280	 	 	 	2,557	 	 	 	27	 	 	 	57	  	 	2,641	 	
Net Premium Earned as reported	  	$	1,243	 	 	$	1,126	 	 	$	359	 	 	$	2,728	 	 	$	96	 	 	$	57	  	$	2,881	 	
Catastrophe Impact	  	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	  	 	—  	 	
 	  				 				 				 				 				 			  				
Net Premium Earned excluding Catastrophes	  	 	1,243	 	 	 	1,126	 	 	 	359	 	 	 	2,728	 	 	 	96	 	 	 	57	  	 	2,881	 	
Loss Ratio as reported	  	 	109.9	%	 	 	48.6	%	 	 	57.0	%	 	 	77.7	%	 	 	101.3	%	 	 	 	  	 	78.5	%	
Catastrophe and A&E Impact	  	 	36.9	%	 	 	0.5	%	 	 	8.7	%	 	 	18.2	%	 	 	0.0	%	 	 	 	  	 	17.5	%	
 	  				 				 				 				 				 	 	 	  				
Loss Ratio excluding Catastrophes and A&E	  	 	73.0	%	 	 	48.1	%	 	 	48.3	%	 	 	59.5	%	 	 	101.3	%	 	 	 	  	 	61.0	%	
Expense Ratio as reported	  	 	19.4	%	 	 	31.5	%	 	 	23.0	%	 	 	27.0	%	 	 	1.7	%	 	 	 	  	 	26.1	%	
Catastrophe and A&E Impact	  	 	0.0	%	 	 	0.0	%	 	 	0.0	%	 	 	0.0	%	 	 	0.0	%	 	 	 	  	 	0.0	%	
 	  				 				 				 				 				 	 	 	  				
Expense Ratio excluding Catastrophes and A&E	  	 	19.4	%	 	 	31.5	%	 	 	23.0	%	 	 	27.0	%	 	 	1.7	%	 	 	 	  	 	26.1	%	
Combined Ratio as reported	  	 	129.3	%	 	 	80.1	%	 	 	80.0	%	 	 	104.7	%	 	 	103.0	%	 	 	 	  	 	104.6	%	
Catastrophe and A&E Impact	  	 	36.9	%	 	 	0.5	%	 	 	8.7	%	 	 	18.2	%	 	 	0.0	%	 	 	 	  	 	17.5	%	
 	  				 				 				 				 				 	 	 	  				
Combined Ratio excluding Catastrophes and A&E	  	 	92.4	%	 	 	79.6	%	 	 	71.3	%	 	 	86.5	%	 	 	103.0	%	 	 	 	  	 	87.1	%	
								
Full Year - 2004	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	  	 	 	 	
Net Premium Written as reported	  	$	5,101	 	 	$	4,335	 	 	$	1,518	 	 	$	10,954	 	 	$	316	 	 	$	226	  	$	11,496	 	
Catastrophe Impact	  	 	13	 	 	 	13	 	 	 	(15	)	 	 	11	 	 	 	—  	 	 	 	—  	  	 	11	 	
 	  				 				 				 				 				 			  				
Net Premium Written excluding Catastrophes	  	 	5,114	 	 	 	4,348	 	 	 	1,503	 	 	 	10,965	 	 	 	316	 	 	 	226	  	 	11,507	 	
Net Premium Earned as reported	  	$	4,679	 	 	$	4,296	 	 	$	1,389	 	 	$	10,364	 	 	$	520	 	 	$	226	  	$	11,110	 	
Catastrophe Impact	  	 	13	 	 	 	13	 	 	 	(15	)	 	 	11	 	 	 	—  	 	 	 	—  	  	 	11	 	
 	  				 				 				 				 				 			  				
Net Premium Earned excluding Catastrophes	  	 	4,692	 	 	 	4,309	 	 	 	1,374	 	 	 	10,375	 	 	 	520	 	 	 	226	  	 	11,121	 	
Loss Ratio as reported	  	 	83.3	%	 	 	56.4	%	 	 	70.1	%	 	 	70.5	%	 	 	74.6	%	 	 	 	  	 	70.7	%	
Catastrophe and A&E Impact	  	 	12.7	%	 	 	1.5	%	 	 	21.7	%	 	 	9.3	%	 	 	2.1	%	 	 	 	  	 	8.9	%	
 	  				 				 				 				 				 	 	 	  				
Loss Ratio excluding Catastrophes and A&E	  	 	70.6	%	 	 	54.9	%	 	 	48.4	%	 	 	61.2	%	 	 	72.5	%	 	 	 	  	 	61.8	%	
Expense Ratio as reported	  	 	19.2	%	 	 	31.3	%	 	 	24.1	%	 	 	26.4	%	 	 	11.8	%	 	 	 	  	 	25.7	%	
Catastrophe and A&E Impact	  	 	0.1	%	 	 	0.1	%	 	 	-0.3	%	 	 	0.1	%	 	 	-0.1	%	 	 	 	  	 	0.0	%	
 	  				 				 				 				 				 	 	 	  				
Expense Ratio excluding Catastrophes and A&E	  	 	19.1	%	 	 	31.2	%	 	 	24.4	%	 	 	26.3	%	 	 	11.9	%	 	 	 	  	 	25.7	%	
Combined Ratio as reported	  	 	102.5	%	 	 	87.7	%	 	 	94.2	%	 	 	96.9	%	 	 	86.4	%	 	 	 	  	 	96.4	%	
Catastrophe and A&E Impact	  	 	12.8	%	 	 	1.6	%	 	 	21.4	%	 	 	9.4	%	 	 	2.0	%	 	 	 	  	 	8.9	%	
 	  				 				 				 				 				 	 	 	  				
Combined Ratio excluding Catastrophes and A&E	  	 	89.7	%	 	 	86.1	%	 	 	72.8	%	 	 	87.5	%	 	 	84.4	%	 	 	 	  	 	87.5	%	
 
(1)	See page 32 Non-GAAP Financial Measures.	

Loss Analysis 2	  	Page 14	

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

 	  	4Q-05
	 	 	3Q-05
	 	 	2Q-05
	 	 	1Q-05
	 	 	4Q-04
	 	 	Full Year
2005
	 	 	Full Year
2004
	 	
Gross premiums written	  	$	2,090	 	 	$	2,250	 	 	$	2,344	 	 	$	2,150	 	 	$	1,885	 	 	$	8,834	 	 	$	8,126	 	
Net premiums written	  	 	1,310	 	 	 	1,307	 	 	 	1,412	 	 	 	1,425	 	 	 	1,194	 	 	 	5,454	 	 	 	5,101	 	
Net premiums earned	  	 	1,347	 	 	 	1,338	 	 	 	1,319	 	 	 	1,285	 	 	 	1,243	 	 	 	5,289	 	 	 	4,679	 	
Losses and loss expenses	  	 	1,094	 	 	 	1,173	 	 	 	948	 	 	 	892	 	 	 	1,366	 	 	 	4,107	 	 	 	3,898	 	
Policy acquisition costs	  	 	111	 	 	 	134	 	 	 	130	 	 	 	117	 	 	 	114	 	 	 	492	 	 	 	447	 	
Administrative expenses	  	 	117	 	 	 	96	 	 	 	111	 	 	 	111	 	 	 	128	 	 	 	435	 	 	 	451	 	
 	  				 				 				 				 				 				 				
Underwriting income (loss)	  	 	25	 	 	 	(65	)	 	 	130	 	 	 	165	 	 	 	(365	)	 	 	255	 	 	 	(117	)	
								
Net investment income	  	 	153	 	 	 	139	 	 	 	142	 	 	 	131	 	 	 	132	 	 	 	565	 	 	 	469	 	
Net realized gains (losses)	  	 	(19	)	 	 	10	 	 	 	14	 	 	 	(11	)	 	 	35	 	 	 	(6	)	 	 	126	 	
Interest expense	  	 	5	 	 	 	6	 	 	 	5	 	 	 	5	 	 	 	5	 	 	 	21	 	 	 	21	 	
Other (income) expense	  	 	6	 	 	 	(1	)	 	 	1	 	 	 	—  	 	 	 	2	 	 	 	6	 	 	 	5	 	
Income tax expense (benefit)	  	 	33	 	 	 	10	 	 	 	81	 	 	 	80	 	 	 	(100	)	 	 	204	 	 	 	82	 	
 	  				 				 				 				 				 				 				
Net income (loss)	  	 	115	 	 	 	69	 	 	 	199	 	 	 	200	 	 	 	(105	)	 	 	583	 	 	 	370	 	
								
Net realized gains (losses)	  	 	(19	)	 	 	10	 	 	 	14	 	 	 	(11	)	 	 	35	 	 	 	(6	)	 	 	126	 	
Tax expense (benefit) on net realized gains (losses)	  	 	(9	)	 	 	2	 	 	 	2	 	 	 	(3	)	 	 	5	 	 	 	(8	)	 	 	22	 	
 	  				 				 				 				 				 				 				
Income (loss) excluding net realized gains (losses) (1)	  	$	125	 	 	$	61	 	 	$	187	 	 	$	208	 	 	$	(135	)	 	$	581	 	 	$	266	 	
 	  				 				 				 				 				 				 				
Combined ratio	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Loss and loss expense ratio	  	 	81.2	%	 	 	87.7	%	 	 	71.9	%	 	 	69.4	%	 	 	109.9	%	 	 	77.7	%	 	 	83.3	%	
Policy acquisition cost ratio	  	 	8.2	%	 	 	10.0	%	 	 	9.8	%	 	 	9.1	%	 	 	9.1	%	 	 	9.3	%	 	 	9.6	%	
Administrative expense ratio	  	 	8.6	%	 	 	7.2	%	 	 	8.4	%	 	 	8.6	%	 	 	10.3	%	 	 	8.2	%	 	 	9.6	%	
 	  				 				 				 				 				 				 				
Combined ratio	  	 	98.0	%	 	 	104.9	%	 	 	90.1	%	 	 	87.1	%	 	 	129.3	%	 	 	95.2	%	 	 	102.5	%	
 	  				 				 				 				 				 				 				
Large losses and other items (before tax)	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Asbestos, environmental and other run-off losses	  	$	—  	 	 	$	—  	 	 	$	—  	 	 	$	—  	 	 	$	459	 	 	$	—  	 	 	$	459	 	
Catastrophe and other large losses (before tax)	  	$	114	 	 	$	203	 	 	$	—  	 	 	$	—  	 	 	$	—  	 	 	$	317	 	 	$	126	 	
Prior period development—unfavorable (favorable)	  	$	49	 	 	$	22	 	 	$	51	 	 	$	22	 	 	$	96	 	 	$	144	 	 	$	195	 	
								
% Change versus prior year period	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net premiums written	  	 	10	%	 	 	-4	%	 	 	6	%	 	 	18	%	 	 	12	%	 	 	7	%	 	 	26	%	
Net premiums earned	  	 	8	%	 	 	7	%	 	 	12	%	 	 	28	%	 	 	23	%	 	 	13	%	 	 	27	%	
								
Other ratios	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net premiums written/gross premiums written	  	 	63	%	 	 	58	%	 	 	60	%	 	 	66	%	 	 	63	%	 	 	62	%	 	 	63	%	
 
(1)	See page 32 Non-GAAP Financial Measures.	

Insurance-North American	  	Page 15	

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

 	  	4Q-05
	 	 	3Q-05
	 	 	2Q-05
	 	 	1Q-05
	 	 	4Q-04
	 	 	Full Year
2005
	 	 	Full Year
2004
	 	
Gross premiums written	  	$	1,388	 	 	$	1,328	 	 	$	1,425	 	 	$	1,634	 	 	$	1,389	 	 	$	5,775	 	 	$	5,851	 	
Net premiums written	  	 	1,014	 	 	 	929	 	 	 	1,059	 	 	 	1,193	 	 	 	1,083	 	 	 	4,195	 	 	 	4,335	 	
Net premiums earned	  	 	1,048	 	 	 	1,027	 	 	 	1,078	 	 	 	1,086	 	 	 	1,126	 	 	 	4,239	 	 	 	4,296	 	
Losses and loss expenses	  	 	679	 	 	 	685	 	 	 	609	 	 	 	610	 	 	 	547	 	 	 	2,583	 	 	 	2,423	 	
Policy acquisition costs	  	 	224	 	 	 	205	 	 	 	216	 	 	 	191	 	 	 	222	 	 	 	836	 	 	 	800	 	
Administrative expenses	  	 	137	 	 	 	143	 	 	 	140	 	 	 	146	 	 	 	132	 	 	 	566	 	 	 	544	 	
 	  				 				 				 				 				 				 				
Underwriting income (loss)	  	 	8	 	 	 	(6	)	 	 	113	 	 	 	139	 	 	 	225	 	 	 	254	 	 	 	529	 	
								
Net investment income	  	 	83	 	 	 	82	 	 	 	80	 	 	 	74	 	 	 	65	 	 	 	319	 	 	 	224	 	
Net realized gains (losses)	  	 	(18	)	 	 	17	 	 	 	34	 	 	 	18	 	 	 	18	 	 	 	51	 	 	 	47	 	
Interest expense	  	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	
Other (income) expense	  	 	—  	 	 	 	5	 	 	 	5	 	 	 	6	 	 	 	15	 	 	 	16	 	 	 	25	 	
Income tax expense (benefit)	  	 	(17	)	 	 	23	 	 	 	49	 	 	 	52	 	 	 	86	 	 	 	107	 	 	 	232	 	
 	  				 				 				 				 				 				 				
Net income	  	 	90	 	 	 	65	 	 	 	173	 	 	 	173	 	 	 	207	 	 	 	501	 	 	 	543	 	
								
Net realized gains (losses)	  	 	(18	)	 	 	17	 	 	 	34	 	 	 	18	 	 	 	18	 	 	 	51	 	 	 	47	 	
Tax expense (benefit) on net realized gains (losses)	  	 	(4	)	 	 	5	 	 	 	7	 	 	 	5	 	 	 	5	 	 	 	13	 	 	 	14	 	
 	  				 				 				 				 				 				 				
Income excluding net realized gains (losses) (1)	  	$	104	 	 	$	53	 	 	$	146	 	 	$	160	 	 	$	194	 	 	$	463	 	 	$	510	 	
 	  				 				 				 				 				 				 				
Combined ratio	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Loss and loss expense ratio	  	 	64.8	%	 	 	66.8	%	 	 	56.4	%	 	 	56.2	%	 	 	48.6	%	 	 	60.9	%	 	 	56.4	%	
Policy acquisition cost ratio	  	 	21.3	%	 	 	20.0	%	 	 	20.0	%	 	 	17.6	%	 	 	19.8	%	 	 	19.7	%	 	 	18.6	%	
Administrative expense ratio	  	 	13.2	%	 	 	13.8	%	 	 	13.1	%	 	 	13.4	%	 	 	11.7	%	 	 	13.4	%	 	 	12.7	%	
 	  				 				 				 				 				 				 				
Combined ratio	  	 	99.3	%	 	 	100.6	%	 	 	89.5	%	 	 	87.2	%	 	 	80.1	%	 	 	94.0	%	 	 	87.7	%	
 	  				 				 				 				 				 				 				
Large losses and other items	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Asbestos, environmental and other run-off losses	  	$	—  	 	 	$	—  	 	 	$	—  	 	 	$	—  	 	 	$	6	 	 	$	—  	 	 	$	6	 	
Catastrophe and other large losses (before tax)	  	$	80	 	 	$	121	 	 	$	—  	 	 	$	—  	 	 	$	—  	 	 	$	201	 	 	$	53	 	
Prior period development - unfavorable (favorable)	  	$	9	 	 	$	10	 	 	$	(21	)	 	$	7	 	 	$	22	 	 	$	5	 	 	$	(23	)	
								
% Change versus prior year period	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net premiums written	  	 	-6	%	 	 	-5	%	 	 	-3	%	 	 	1	%	 	 	10	%	 	 	-3	%	 	 	15	%	
Net premiums earned	  	 	-7	%	 	 	-5	%	 	 	1	%	 	 	7	%	 	 	11	%	 	 	-1	%	 	 	17	%	
								
Other ratios	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net premiums written/gross premiums written	  	 	73	%	 	 	70	%	 	 	74	%	 	 	73	%	 	 	78	%	 	 	73	%	 	 	74	%	
 
(1)	See page 32 Non-GAAP Financial Measures.	

Insurance-Overseas General	  	Page 16	

			
	  	ACE Limited	
	  	Segment Results - Consecutive Quarters - 2	
	  	(in millions of U.S. dollars)	
	  	(Unaudited)	
 
Insurance - Overseas General (excluding life insurance)

 	  	3Q-04
	 	 	2Q-04
	 	 	1Q-04
	 	 	Full Year
2003
	 	
Gross premiums written	  	$	1,290	 	 	$	1,500	 	 	$	1,672	 	 	$	5,188	 	
Net premiums written	  	 	978	 	 	 	1,097	 	 	 	1,177	 	 	 	3,773	 	
Net premiums earned	  	 	1,084	 	 	 	1,068	 	 	 	1,018	 	 	 	3,659	 	
Losses and loss expenses	  	 	664	 	 	 	626	 	 	 	586	 	 	 	2,182	 	
Policy acquisition costs	  	 	198	 	 	 	195	 	 	 	185	 	 	 	681	 	
Administrative expenses	  	 	138	 	 	 	138	 	 	 	136	 	 	 	487	 	
 	  				 				 				 				
Underwriting income	  	$	84	 	 	$	109	 	 	$	111	 	 	$	309	 	
					
Net investment income	  	 	51	 	 	 	58	 	 	 	50	 	 	 	166	 	
Net realized gains (losses)	  	 	2	 	 	 	3	 	 	 	24	 	 	 	(6	)	
Interest expense	  	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	
Other (income) expense	  	 	3	 	 	 	4	 	 	 	3	 	 	 	15	 	
Income tax expense	  	 	34	 	 	 	60	 	 	 	52	 	 	 	99	 	
 	  				 				 				 				
Net income	  	$	100	 	 	$	106	 	 	$	130	 	 	$	355	 	
					
Net realized gains (losses)	  	 	2	 	 	 	3	 	 	 	24	 	 	 	(6	)	
Tax expense (benefit) on net realized gains (losses)	  	 	1	 	 	 	1	 	 	 	7	 	 	 	(5	)	
 	  				 				 				 				
Income excluding net realized gains (losses) (1)	  	$	99	 	 	$	104	 	 	$	113	 	 	$	356	 	
 	  				 				 				 				
Combined ratio	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Loss and loss expense ratio	  	 	61.2	%	 	 	58.7	%	 	 	57.6	%	 	 	59.6	%	
Policy acquisition cost ratio	  	 	18.2	%	 	 	18.3	%	 	 	18.1	%	 	 	18.6	%	
Administrative expense ratio	  	 	12.7	%	 	 	13.0	%	 	 	13.3	%	 	 	13.3	%	
 	  				 				 				 				
Combined ratio	  	 	92.1	%	 	 	90.0	%	 	 	89.0	%	 	 	91.5	%	

(1)	See page 32 Non-GAAP Financial Measures.	

Insurance-Overseas General 2	  	Page 17	

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

 	  	4Q-05
	 	 	3Q-05
	 	 	2Q-05
	 	 	1Q-05
	 	 	4Q-04
	 	 	Full Year
2005
	 	 	Full Year
2004
	 	
Gross premiums written	  	$	283	 	 	$	411	 	 	$	369	 	 	$	536	 	 	$	286	 	 	$	1,599	 	 	$	1,567	 	
Net premiums written	  	 	276	 	 	 	380	 	 	 	363	 	 	 	527	 	 	 	280	 	 	 	1,546	 	 	 	1,518	 	
Net premiums earned	  	 	395	 	 	 	408	 	 	 	372	 	 	 	356	 	 	 	359	 	 	 	1,531	 	 	 	1,389	 	
Losses and loss expenses	  	 	354	 	 	 	637	 	 	 	206	 	 	 	205	 	 	 	204	 	 	 	1,402	 	 	 	973	 	
Policy acquisition costs	  	 	79	 	 	 	78	 	 	 	77	 	 	 	73	 	 	 	68	 	 	 	307	 	 	 	271	 	
Administrative expenses	  	 	13	 	 	 	16	 	 	 	16	 	 	 	15	 	 	 	15	 	 	 	60	 	 	 	65	 	
 	  				 				 				 				 				 				 				
Underwriting income (loss)	  	 	(51	)	 	 	(323	)	 	 	73	 	 	 	63	 	 	 	72	 	 	 	(238	)	 	 	80	 	
								
Net investment income	  	 	49	 	 	 	45	 	 	 	40	 	 	 	39	 	 	 	38	 	 	 	173	 	 	 	126	 	
Net realized gains (losses)	  	 	(11	)	 	 	7	 	 	 	6	 	 	 	(6	)	 	 	13	 	 	 	(4	)	 	 	27	 	
Interest expense	  	 	1	 	 	 	1	 	 	 	—  	 	 	 	1	 	 	 	—  	 	 	 	3	 	 	 	—  	 	
Other (income) expense	  	 	1	 	 	 	1	 	 	 	1	 	 	 	1	 	 	 	(1	)	 	 	4	 	 	 	(1	)	
Income tax expense (benefit)	  	 	5	 	 	 	(12	)	 	 	9	 	 	 	9	 	 	 	11	 	 	 	11	 	 	 	14	 	
 	  				 				 				 				 				 				 				
Net income (loss)	  	 	(20	)	 	 	(261	)	 	 	109	 	 	 	85	 	 	 	113	 	 	 	(87	)	 	 	220	 	
								
Net realized gains (losses)	  	 	(11	)	 	 	7	 	 	 	6	 	 	 	(6	)	 	 	13	 	 	 	(4	)	 	 	27	 	
Tax expense (benefit) on net realized gains (losses)	  	 	(1	)	 	 	1	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	
 	  				 				 				 				 				 				 				
Income (loss) excluding net realized gains (losses) (1)	  	$	(10	)	 	$	(267	)	 	$	103	 	 	$	91	 	 	$	100	 	 	$	(83	)	 	$	193	 	
 	  				 				 				 				 				 				 				
Combined ratio	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Loss and loss expense ratio	  	 	89.6	%	 	 	156.2	%	 	 	55.4	%	 	 	57.6	%	 	 	57.0	%	 	 	91.6	%	 	 	70.1	%	
Policy acquisition cost ratio	  	 	20.0	%	 	 	19.1	%	 	 	20.7	%	 	 	20.5	%	 	 	19.0	%	 	 	20.1	%	 	 	19.5	%	
Administrative expense ratio	  	 	3.4	%	 	 	4.0	%	 	 	4.1	%	 	 	4.3	%	 	 	4.0	%	 	 	3.9	%	 	 	4.6	%	
 	  				 				 				 				 				 				 				
Combined ratio	  	 	113.0	%	 	 	179.3	%	 	 	80.2	%	 	 	82.4	%	 	 	80.0	%	 	 	115.6	%	 	 	94.2	%	
 	  				 				 				 				 				 				 				
Large losses and other items	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Catastrophe and other large losses (before tax)	  	$	166	 	 	$	432	 	 	$	—  	 	 	$	3	 	 	$	31	 	 	$	601	 	 	$	309	 	
Prior period development - unfavorable (favorable)	  	$	(14	)	 	$	(5	)	 	$	(3	)	 	$	—  	 	 	$	(13	)	 	$	(22	)	 	$	(61	)	
 
(1)	See page 32 Non-GAAP Financial Measures.	

Global Reinsurance	  	Page 18	

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

 	  	4Q-05
	 	 	3Q-05
	 	 	2Q-05
	 	 	1Q-05
	 	 	4Q-04
	 	 	Full Year
2005
	 	 	Full Year
2004
	 	
% Change versus prior year period	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net premiums written	  	 	-1	%	 	 	26	%	 	 	-1	%	 	 	-8	%	 	 	27	%	 	 	2	%	 	 	24	%	
Net premiums earned	  	 	10	%	 	 	16	%	 	 	7	%	 	 	7	%	 	 	16	%	 	 	10	%	 	 	26	%	
								
Other ratios	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net premiums written/gross premiums written	  	 	98	%	 	 	92	%	 	 	98	%	 	 	98	%	 	 	98	%	 	 	97	%	 	 	97	%	
								
Global Reinsurance - By Division	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
								
Gross premiums written	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Tempest Europe	  	$	60	 	 	$	78	 	 	$	49	 	 	$	105	 	 	$	64	 	 	$	292	 	 	$	326	 	
Tempest USA	  	 	193	 	 	 	234	 	 	 	228	 	 	 	248	 	 	 	204	 	 	 	903	 	 	 	881	 	
Tempest Bermuda	  	 	30	 	 	 	99	 	 	 	92	 	 	 	183	 	 	 	18	 	 	 	404	 	 	 	360	 	
 	  				 				 				 				 				 				 				
Total	  	$	283	 	 	$	411	 	 	$	369	 	 	$	536	 	 	$	286	 	 	$	1,599	 	 	$	1,567	 	
 	  				 				 				 				 				 				 				
Net premiums written	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Tempest Europe	  	$	58	 	 	$	74	 	 	$	46	 	 	$	102	 	 	$	61	 	 	$	280	 	 	$	311	 	
Tempest USA	  	 	193	 	 	 	231	 	 	 	227	 	 	 	247	 	 	 	204	 	 	 	898	 	 	 	877	 	
Tempest Bermuda	  	 	25	 	 	 	75	 	 	 	90	 	 	 	178	 	 	 	15	 	 	 	368	 	 	 	330	 	
 	  				 				 				 				 				 				 				
Total	  	$	276	 	 	$	380	 	 	$	363	 	 	$	527	 	 	$	280	 	 	$	1,546	 	 	$	1,518	 	
 	  				 				 				 				 				 				 				
Net premiums earned	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Tempest Europe	  	$	74	 	 	$	79	 	 	$	66	 	 	$	76	 	 	$	76	 	 	$	295	 	 	$	303	 	
Tempest USA	  	 	222	 	 	 	223	 	 	 	230	 	 	 	212	 	 	 	206	 	 	 	887	 	 	 	751	 	
Tempest Bermuda	  	 	99	 	 	 	106	 	 	 	76	 	 	 	68	 	 	 	77	 	 	 	349	 	 	 	335	 	
 	  				 				 				 				 				 				 				
Total	  	$	395	 	 	$	408	 	 	$	372	 	 	$	356	 	 	$	359	 	 	$	1,531	 	 	$	1,389	 	
 	  				 				 				 				 				 				 				
Net premiums written/gross premiums written	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
								
Tempest Europe	  	 	97	%	 	 	95	%	 	 	94	%	 	 	97	%	 	 	95	%	 	 	96	%	 	 	95	%	
Tempest USA	  	 	100	%	 	 	99	%	 	 	100	%	 	 	100	%	 	 	100	%	 	 	99	%	 	 	100	%	
Tempest Bermuda	  	 	83	%	 	 	76	%	 	 	98	%	 	 	97	%	 	 	83	%	 	 	91	%	 	 	92	%	
 	  				 				 				 				 				 				 				
Total NPW/GPW	  	 	98	%	 	 	92	%	 	 	98	%	 	 	98	%	 	 	98	%	 	 	97	%	 	 	97	%	

			
Global Reinsurance 2	  	Page 19	

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

 	  	4Q-05
	 	 	3Q-05
	 	 	2Q-05
	 	 	1Q-05
	 	 	4Q-04
	 	 	Full Year
2005
	 	 	Full Year
2004
	 	
Gross premiums written	  	$	(31	)	 	$	211	 	 	$	15	 	 	$	163	 	 	$	29	 	 	$	358	 	 	$	320	 	
Net premiums written	  	 	(35	)	 	 	212	 	 	 	15	 	 	 	161	 	 	 	27	 	 	 	353	 	 	 	316	 	
Net premiums earned	  	 	6	 	 	 	257	 	 	 	92	 	 	 	90	 	 	 	96	 	 	 	445	 	 	 	520	 	
Losses and loss expenses	  	 	(4	)	 	 	310	 	 	 	70	 	 	 	83	 	 	 	97	 	 	 	459	 	 	 	388	 	
Policy acquisition costs	  	 	6	 	 	 	2	 	 	 	1	 	 	 	2	 	 	 	1	 	 	 	11	 	 	 	23	 	
Administrative expenses	  	 	4	 	 	 	3	 	 	 	7	 	 	 	4	 	 	 	1	 	 	 	18	 	 	 	39	 	
 	  				 				 				 				 				 				 				
Underwriting income (loss)	  	 	—  	 	 	 	(58	)	 	 	14	 	 	 	1	 	 	 	(3	)	 	 	(43	)	 	 	70	 	
								
Net investment income	  	 	36	 	 	 	35	 	 	 	30	 	 	 	32	 	 	 	29	 	 	 	133	 	 	 	147	 	
Net realized gains (losses)	  	 	6	 	 	 	7	 	 	 	3	 	 	 	6	 	 	 	12	 	 	 	22	 	 	 	(17	)	
Interest expense	  	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	5	 	
Other (income) expense	  	 	(10	)	 	 	(30	)	 	 	(13	)	 	 	(12	)	 	 	(15	)	 	 	(65	)	 	 	(25	)	
Income tax expense (benefit)	  	 	(7	)	 	 	10	 	 	 	7	 	 	 	6	 	 	 	3	 	 	 	16	 	 	 	35	 	
 	  				 				 				 				 				 				 				
Net income	  	 	59	 	 	 	4	 	 	 	53	 	 	 	45	 	 	 	50	 	 	 	161	 	 	 	185	 	
								
Net realized gains (losses)	  	 	6	 	 	 	7	 	 	 	3	 	 	 	6	 	 	 	12	 	 	 	22	 	 	 	(17	)	
Tax expense (benefit) on net realized gains (losses)	  	 	(3	)	 	 	—  	 	 	 	(1	)	 	 	2	 	 	 	2	 	 	 	(2	)	 	 	8	 	
 	  				 				 				 				 				 				 				
Income (loss) excluding net realized gains (losses) (1)	  	$	50	 	 	$	(3	)	 	$	49	 	 	$	41	 	 	$	40	 	 	$	137	 	 	$	210	 	
 	  				 				 				 				 				 				 				
Combined ratio	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Loss and loss expense ratio	  	 	-66.6	%	 	 	120.7	%	 	 	76.0	%	 	 	92.2	%	 	 	101.3	%	 	 	103.0	%	 	 	74.6	%	
Policy acquisition cost ratio	  	 	91.8	%	 	 	0.9	%	 	 	1.4	%	 	 	2.2	%	 	 	-0.1	%	 	 	2.6	%	 	 	4.3	%	
Administrative expense ratio	  	 	64.7	%	 	 	1.4	%	 	 	6.7	%	 	 	4.6	%	 	 	1.8	%	 	 	4.0	%	 	 	7.5	%	
 	  				 				 				 				 				 				 				
Combined ratio	  	 	89.9	%	 	 	123.0	%	 	 	84.1	%	 	 	99.0	%	 	 	103.0	%	 	 	109.6	%	 	 	86.4	%	
 	  				 				 				 				 				 				 				
Large losses and other items	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Catastrophe and other large losses (before tax)	  	$	—  	 	 	$	240	 	 	$	—  	 	 	$	—  	 	 	$	—  	 	 	$	240	 	 	$	11	 	
Prior period development - unfavorable (favorable)	  	$	(17	)	 	$	2	 	 	$	(8	)	 	$	1	 	 	$	(8	)	 	$	(22	)	 	$	(29	)	
								
% Change versus prior year period	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net premiums written	  	 	-230	%	 	 	212	%	 	 	15	%	 	 	-23	%	 	 	-90	%	 	 	12	%	 	 	-69	%	
Net premiums earned	  	 	-94	%	 	 	132	%	 	 	-31	%	 	 	-50	%	 	 	-80	%	 	 	-14	%	 	 	-52	%	
								
Other ratios	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net premiums written/gross premiums written	  	 	113	%	 	 	100	%	 	 	100	%	 	 	99	%	 	 	93	%	 	 	99	%	 	 	99	%	
 
(1)	See page 32 Non-GAAP Financial Measures.	

Financial Services	  	Page 20	

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

 	  	4Q-05
	 	 	3Q-05
	 	 	2Q-05
	 	 	1Q-05
	 	 	4Q-04
	 	 	Full Year
2005
	 	 	Full Year
2004
	 	
Gross premiums written	  	 	67	 	 	 	61	 	 	 	60	 	 	 	60	 	 	 	57	 	 	 	248	 	 	 	230	 	
Net premiums written	  	 	67	 	 	 	61	 	 	 	60	 	 	 	60	 	 	 	57	 	 	 	248	 	 	 	226	 	
Net premiums earned	  	 	67	 	 	 	61	 	 	 	60	 	 	 	60	 	 	 	57	 	 	 	248	 	 	 	226	 	
Life and annuity benefits	  	 	35	 	 	 	35	 	 	 	38	 	 	 	35	 	 	 	39	 	 	 	143	 	 	 	175	 	
Policy acquisition costs	  	 	7	 	 	 	7	 	 	 	5	 	 	 	5	 	 	 	6	 	 	 	24	 	 	 	24	 	
Administrative expenses	  	 	8	 	 	 	4	 	 	 	3	 	 	 	4	 	 	 	4	 	 	 	19	 	 	 	11	 	
Net investment income	  	 	7	 	 	 	10	 	 	 	10	 	 	 	9	 	 	 	9	 	 	 	36	 	 	 	33	 	
 	  				 				 				 				 				 				 				
Life underwriting income (2)	  	 	24	 	 	 	25	 	 	 	24	 	 	 	25	 	 	 	17	 	 	 	98	 	 	 	49	 	
								
Net realized gains (losses)	  	 	3	 	 	 	5	 	 	 	27	 	 	 	(16	)	 	 	54	 	 	 	19	 	 	 	7	 	
Income tax expense (benefit)	  	 	—  	 	 	 	(1	)	 	 	(1	)	 	 	—  	 	 	 	(1	)	 	 	(2	)	 	 	(2	)	
 	  				 				 				 				 				 				 				
Net income	  	 	27	 	 	 	31	 	 	 	52	 	 	 	9	 	 	 	72	 	 	 	119	 	 	 	58	 	
Net realized gains (losses)	  	 	3	 	 	 	5	 	 	 	27	 	 	 	(16	)	 	 	54	 	 	 	19	 	 	 	7	 	
Tax expense (benefit) on net realized gains (losses)	  	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	
 	  				 				 				 				 				 				 				
Income excluding net realized gains (losses) (1)	  	$	24	 	 	$	26	 	 	$	25	 	 	$	25	 	 	$	18	 	 	$	100	 	 	$	51	 	

 	  	3Q-04
	 	 	2Q-04
	 	 	1Q-04
	 	 	Full Year
2003
	 	 	 	 	 	 	 	 	 	 	
Gross premiums written	  	 	62	 	 	 	57	 	 	 	54	 	 	 	196	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net premiums written	  	 	61	 	 	 	56	 	 	 	52	 	 	 	188	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net premiums earned	  	 	62	 	 	 	55	 	 	 	52	 	 	 	187	 	 	 	 	 	 	 	 	 	 	 	 	 	
Life and annuity benefits	  	 	49	 	 	 	45	 	 	 	42	 	 	 	182	 	 	 	 	 	 	 	 	 	 	 	 	 	
Policy acquisition costs	  	 	7	 	 	 	6	 	 	 	5	 	 	 	17	 	 	 	 	 	 	 	 	 	 	 	 	 	
Administrative expenses	  	 	2	 	 	 	2	 	 	 	3	 	 	 	6	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net investment income	  	 	8	 	 	 	8	 	 	 	8	 	 	 	33	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	  				 				 				 				 	 	 	 	 	 	 	 	 	 	 	 	
Life underwriting income (2)	  	 	12	 	 	 	10	 	 	 	10	 	 	 	15	 	 	 	 	 	 	 	 	 	 	 	 	 	
								
Net realized gains (losses)	  	 	(37	)	 	 	15	 	 	 	(25	)	 	 	(21	)	 	 	 	 	 	 	 	 	 	 	 	 	
Income tax expense (benefit)	  	 	—  	 	 	 	—  	 	 	 	(1	)	 	 	(1	)	 	 	 	 	 	 	 	 	 	 	 	 	
 	  				 				 				 				 	 	 	 	 	 	 	 	 	 	 	 	
Net income (loss)	  	 	(25	)	 	 	25	 	 	 	(14	)	 	 	(5	)	 	 	 	 	 	 	 	 	 	 	 	 	
								
Net realized gains (losses)	  	 	(37	)	 	 	15	 	 	 	(25	)	 	 	(21	)	 	 	 	 	 	 	 	 	 	 	 	 	
Tax expense (benefit) on net realized gains (losses)	  	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	  				 				 				 				 	 	 	 	 	 	 	 	 	 	 	 	
Income (loss) excluding net realized gains (losses) (1)	  	$	12	 	 	$	10	 	 	$	11	 	 	$	16	 	 	 	 	 	 	 	 	 	 	 	 	 	

(1)	See page 32 Non-GAAP Financial Measures.	
 
(2)	We assess the performance of our Life Insurance and Reinsurance business based on life underwriting income which includes net investment income.	

Life	  	Page 21	

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

 	  	Total
	 	 	Ongoing
	 	 	Run-off (1)
	 	
 	  	Unpaid Losses
	 	 	Unpaid Losses
	 	 	Unpaid Losses
	 	
 	  	Gross
	 	 	Ceded
	 	 	Net
	 	 	Gross
	 	 	Ceded
	 	 	Net
	 	 	Gross
	 	 	Ceded
	 	 	Net
	 	
Balance at December 31, 2003	  	$	27,083	 	 	$	12,409	 	 	$	14,674	 	 	$	19,763	 	 	$	7,259	 	 	$	12,504	 	 	$	7,320	 	 	$	5,150	 	 	$	2,170	 	
										
Losses and loss expenses incurred	  	 	2,285	 	 	 	756	 	 	 	1,529	 	 	 	2,243	 	 	 	724	 	 	 	1,519	 	 	 	42	 	 	 	32	 	 	 	10	 	
Losses and loss expenses paid	  	 	(1,860	)	 	 	(781	)	 	 	(1,079	)	 	 	(1,639	)	 	 	(545	)	 	 	(1,094	)	 	 	(221	)	 	 	(236	)	 	 	15	 	
Other (incl. foreign exch. revaluation)	  	 	117	 	 	 	110	 	 	 	7	 	 	 	117	 	 	 	110	 	 	 	7	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	
 	  				 				 				 				 				 				 				 				 				
Balance at March 31, 2004	  	 	27,625	 	 	 	12,494	 	 	 	15,131	 	 	 	20,484	 	 	 	7,548	 	 	 	12,936	 	 	 	7,141	 	 	 	4,946	 	 	 	2,195	 	
										
Losses and loss expenses incurred	  	 	2,452	 	 	 	727	 	 	 	1,725	 	 	 	2,482	 	 	 	761	 	 	 	1,721	 	 	 	(30	)	 	 	(34	)	 	 	4	 	
Losses and loss expenses paid	  	 	(1,693	)	 	 	(593	)	 	 	(1,100	)	 	 	(1,402	)	 	 	(399	)	 	 	(1,003	)	 	 	(291	)	 	 	(194	)	 	 	(97	)	
Other (incl. foreign exch. revaluation)	  	 	(232	)	 	 	166	 	 	 	(398	)	 	 	(232	)	 	 	166	 	 	 	(398	)	 	 	—  	 	 	 	—  	 	 	 	—  	 	
 	  				 				 				 				 				 				 				 				 				
Balance at June 30, 2004	  	 	28,152	 	 	 	12,794	 	 	 	15,358	 	 	 	21,332	 	 	 	8,076	 	 	 	13,256	 	 	 	6,820	 	 	 	4,718	 	 	 	2,102	 	
										
Losses and loss expenses incurred	  	 	3,296	 	 	 	1,076	 	 	 	2,220	 	 	 	3,267	 	 	 	1,058	 	 	 	2,209	 	 	 	29	 	 	 	18	 	 	 	11	 	
Losses and loss expenses paid	  	 	(1,945	)	 	 	(697	)	 	 	(1,248	)	 	 	(1,737	)	 	 	(372	)	 	 	(1,365	)	 	 	(208	)	 	 	(325	)	 	 	117	 	
Other (incl. foreign exch. revaluation)	  	 	28	 	 	 	48	 	 	 	(20	)	 	 	(395	)	 	 	(375	)	 	 	(20	)	 	 	423	 	 	 	423	 	 	 	—  	 	
 	  				 				 				 				 				 				 				 				 				
Balance at September 30, 2004	  	 	29,531	 	 	 	13,221	 	 	 	16,310	 	 	 	22,467	 	 	 	8,387	 	 	 	14,080	 	 	 	7,064	 	 	 	4,834	 	 	 	2,230	 	
										
Losses and loss expenses incurred	  	 	3,723	 	 	 	1,507	 	 	 	2,216	 	 	 	2,683	 	 	 	1,083	 	 	 	1,600	 	 	 	1,040	 	 	 	424	 	 	 	616	 	
Losses and loss expenses paid	  	 	(2,340	)	 	 	(1,007	)	 	 	(1,333	)	 	 	(2,231	)	 	 	(959	)	 	 	(1,272	)	 	 	(109	)	 	 	(48	)	 	 	(61	)	
Other (incl. foreign exch. revaluation)	  	 	569	 	 	 	245	 	 	 	324	 	 	 	282	 	 	 	(84	)	 	 	366	 	 	 	287	 	 	 	329	 	 	 	(42	)	
 	  				 				 				 				 				 				 				 				 				
Balance at December 31, 2004	  	 	31,483	 	 	 	13,966	 	 	 	17,517	 	 	 	23,201	 	 	 	8,427	 	 	 	14,774	 	 	 	8,282	 	 	 	5,539	 	 	 	2,743	 	
										
Losses and loss expenses incurred	  	 	2,536	 	 	 	747	 	 	 	1,789	 	 	 	2,492	 	 	 	725	 	 	 	1,767	 	 	 	44	 	 	 	22	 	 	 	22	 	
Losses and loss expenses paid	  	 	(1,998	)	 	 	(763	)	 	 	(1,235	)	 	 	(1,817	)	 	 	(661	)	 	 	(1,156	)	 	 	(181	)	 	 	(102	)	 	 	(79	)	
Other (incl. foreign exch. revaluation) (2)	  	 	(595	)	 	 	(595	)	 	 	—  	 	 	 	(669	)	 	 	(670	)	 	 	1	 	 	 	74	 	 	 	75	 	 	 	(1	)	
 	  				 				 				 				 				 				 				 				 				
Balance at March 31, 2005	  	 	31,426	 	 	 	13,355	 	 	 	18,071	 	 	 	23,207	 	 	 	7,821	 	 	 	15,386	 	 	 	8,219	 	 	 	5,534	 	 	 	2,685	 	
Losses and loss expenses incurred	  	 	2,811	 	 	 	968	 	 	 	1,843	 	 	 	2,791	 	 	 	957	 	 	 	1,834	 	 	 	20	 	 	 	11	 	 	 	9	 	
Losses and loss expenses paid	  	 	(1,919	)	 	 	(752	)	 	 	(1,167	)	 	 	(1,711	)	 	 	(567	)	 	 	(1,144	)	 	 	(208	)	 	 	(185	)	 	 	(23	)	
Other (incl. foreign exch. revaluation)	  	 	(217	)	 	 	(71	)	 	 	(146	)	 	 	(190	)	 	 	(71	)	 	 	(119	)	 	 	(27	)	 	 	—  	 	 	 	(27	)	
 	  				 				 				 				 				 				 				 				 				
Balance at June 30, 2005	  	 	32,101	 	 	 	13,500	 	 	 	18,601	 	 	 	24,097	 	 	 	8,140	 	 	 	15,957	 	 	 	8,004	 	 	 	5,360	 	 	 	2,644	 	
										
Losses and loss expenses incurred	  	 	5,016	 	 	 	2,212	 	 	 	2,804	 	 	 	4,942	 	 	 	2,194	 	 	 	2,748	 	 	 	74	 	 	 	18	 	 	 	56	 	
Losses and loss expenses paid	  	 	(2,342	)	 	 	(892	)	 	 	(1,450	)	 	 	(2,187	)	 	 	(799	)	 	 	(1,388	)	 	 	(155	)	 	 	(93	)	 	 	(62	)	
Other (incl. foreign exch. revaluation)	  	 	(101	)	 	 	(55	)	 	 	(46	)	 	 	(101	)	 	 	(54	)	 	 	(47	)	 	 	—  	 	 	 	(1	)	 	 	1	 	
 	  				 				 				 				 				 				 				 				 				
Balance at September 30, 2005	  	 	34,674	 	 	 	14,765	 	 	 	19,909	 	 	 	26,751	 	 	 	9,481	 	 	 	17,270	 	 	 	7,923	 	 	 	5,284	 	 	 	2,639	 	
										
Losses and loss expenses incurred	  	 	2,964	 	 	 	840	 	 	 	2,124	 	 	 	2,836	 	 	 	720	 	 	 	2,116	 	 	 	128	 	 	 	120	 	 	 	8	 	
Losses and loss expenses paid	  	 	(2,458	)	 	 	(950	)	 	 	(1,508	)	 	 	(2,302	)	 	 	(902	)	 	 	(1,400	)	 	 	(156	)	 	 	(48	)	 	 	(108	)	
Other (incl. foreign exch. revaluation)	  	 	(90	)	 	 	(20	)	 	 	(70	)	 	 	(90	)	 	 	(20	)	 	 	(70	)	 	 	—  	 	 	 	—  	 	 	 	—  	 	
 	  				 				 				 				 				 				 				 				 				
Balance at December 31, 2005	  	$	35,090	 	 	$	14,635	 	 	$	20,455	 	 	$	27,195	 	 	$	9,279	 	 	$	17,916	 	 	$	7,895	 	 	$	5,356	 	 	$	2,539	 	

(1)	The run-off reserves primarily include the Brandywine group, the Commercial Insurance Service - Middle Market Worker’s Comp. reserves and the pre-1997 Westchester Specialty reserves.	
 
(2)	Includes a novation of a contract for $597M.	

Loss Reserve Rollforward	  	Page 22	

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

 	  	December 31
2005
	 	 	September 30
2005
	 	 	June 30
2005
	 	 	March 31
2005
	 	 	December 31
2004
	 	
Reinsurance recoverable on paid losses & loss expenses	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Active operations	  	$	751	 	 	$	731	 	 	$	757	 	 	$	784	 	 	$	777	 	
Brandywine	  	 	405	 	 	 	403	 	 	 	415	 	 	 	385	 	 	 	398	 	
Westchester	  	 	53	 	 	 	40	 	 	 	43	 	 	 	35	 	 	 	35	 	
 	  				 				 				 				 				
Total	  	$	1,209	 	 	$	1,174	 	 	$	1,215	 	 	$	1,204	 	 	$	1,210	 	
 	  				 				 				 				 				
Reinsurance recoverable on unpaid losses & loss expenses	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Active operations	  	$	10,135	 	 	$	10,277	 	 	$	8,907	 	 	$	8,607	 	 	$	9,291	 	
Brandywine	  	 	4,268	 	 	 	4,436	 	 	 	4,654	 	 	 	4,796	 	 	 	4,720	 	
Westchester	  	 	694	 	 	 	554	 	 	 	571	 	 	 	578	 	 	 	589	 	
 	  				 				 				 				 				
Total	  	$	15,097	 	 	$	15,267	 	 	$	14,132	 	 	$	13,981	 	 	$	14,600	 	
 	  				 				 				 				 				
Gross reinsurance recoverable	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Active operations	  	$	10,886	 	 	$	11,008	 	 	$	9,664	 	 	$	9,391	 	 	$	10,068	 	
Brandywine	  	 	4,673	 	 	 	4,839	 	 	 	5,069	 	 	 	5,181	 	 	 	5,118	 	
Westchester	  	 	747	 	 	 	594	 	 	 	614	 	 	 	613	 	 	 	624	 	
 	  				 				 				 				 				
Total	  	$	16,306	 	 	$	16,441	 	 	$	15,347	 	 	$	15,185	 	 	$	15,810	 	
 	  				 				 				 				 				
Bad debt reserve	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Active operations	  	$	(600	)	 	$	(588	)	 	$	(606	)	 	$	(607	)	 	$	(574	)	
Brandywine	  	 	(176	)	 	 	(180	)	 	 	(302	)	 	 	(302	)	 	 	(341	)	
Westchester	  	 	(11	)	 	 	(11	)	 	 	(11	)	 	 	(8	)	 	 	(13	)	
 	  				 				 				 				 				
Total	  	$	(787	)	 	$	(779	)	 	$	(919	)	 	$	(917	)	 	$	(928	)	
 	  				 				 				 				 				
Net reinsurance recoverable	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Active operations	  	$	10,286	 	 	$	10,420	 	 	$	9,058	 	 	$	8,784	 	 	$	9,494	 	
Brandywine	  	 	4,497	 	 	 	4,659	 	 	 	4,767	 	 	 	4,879	 	 	 	4,777	 	
Westchester	  	 	736	 	 	 	583	 	 	 	603	 	 	 	605	 	 	 	611	 	
 	  				 				 				 				 				
Total	  	$	15,519	 	 	$	15,662	 	 	$	14,428	 	 	$	14,268	 	 	$	14,882	 	

			
Reinsurance Recoverable	  	Page 23	

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

 	  	September 30, 2005
	 	
 	  	Recoverable
	  	Bad Debt
	  	% of Gross
	 	
Categories	  	 	 	  	 	 	  	 	 	
Top 10 reinsurers	  	$	5,272	  	$	84	  	1.6	%	
Other reinsurers balances >$20 million	  	 	2,502	  	 	93	  	3.7	%	
Other reinsurers balances <$20 million	  	 	671	  	 	60	  	8.9	%	
Mandatory pools and government agencies	  	 	674	  	 	3	  	0.4	%	
Structured settlements	  	 	206	  	 	1	  	0.5	%	
Captives	  	 	1,099	  	 	1	  	0.1	%	
Other (1)	  	 	584	  	 	346	  	59.2	%	
 	  			  			  			
Total	  	$	11,008	  	$	588	  	5.3	%	

At September 30, 2005, $7.8 billion of the active operations’ recoverables were from rated reinsurers, of which 96.1% were rated the equivalent of A- or better by internationally recognized rating agencies. The Company held collateral of $2.8 billion, of which $1.5 billion was matched and usable against existing recoverables.

Top 10 Reinsurers (net of collateral) (2)
	 	Other Reinsurers Balances Greater Than $20 million (net of collateral) (2)
	
American International Group	 	AIOI Insurance	 	IPCRe Ltd	
Aspen Insurance Holdings Ltd	 	Allianz	 	IRB - Brasil Resseguros S.A. Group	
Berkshire Hathaway Insurance Group	 	Allied World Assurance	 	Liberty Mutual Insurance Companies	
Chubb Insurance Group	 	Arch Capital	 	Partner Re	
GE Insurance Solutions	 	AVIVA	 	Platinum Underwriters	
HDI Haftpflichtverband Der Deutschen
Industrie Vag (Hannover)	 	AXA	 	PXRE Reins Corp	
Lloyd’s Of London	 	Catalina Holdings Ltd	 	Renaissance Re Holdings Ltd	
Munich Re Group	 	CIGNA	 	Royal & Sun Alliance Insurance Group	
Swiss Re Group	 	CNA Insurance Companies	 	SCOR Group	
XL Capital Group	 	Converium Group	 	Sompo Japan	
 	 	Electric Insurance Company	 	St Paul Travelers Companies	
 	 	Endurance Specialty Holdings Ltd	 	Tawa Uk Ltd.	
 	 	Everest Re Group	 	Toa Reinsurance Company	
 	 	Fairfax Financial	 	White Mountains Insurance Group	
 	 	Gerling Global Group	 	WR Berkley Corp	
 	 	Independence Blue Cross Group	 	Zurich Financial Services Group	
 	 	ING - Internationale Nederlanden Group	 	 	
 
(1)	Other includes amounts recoverable that are in dispute, or are from companies who are in supervision, rehabilitation or liquidation. Our estimate of bad debt reserve associated with Other considers the credit quality of the reinsurer, and whether we have received collateral or other credit protections such as parental guarantees.	
 
(2)	Excludes recoverable amounts from companies who are in supervision, rehabilitation or liquidation, or are captive reinsurers, mandatory pools or voluntary pools.	

Reinsurance Rec-Active	  	Page 24	

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

 	  	September 30, 2005
	 	
 	  	Recoverable
	  	Bad Debt
	  	% of Gross
	 	
Categories	  	 	 	  	 	 	  	 	 	
Top 10 reinsurers	  	$	8,345	  	$	96	  	1.2	%	
Other reinsurers balances >$20 million	  	 	3,655	  	 	168	  	4.6	%	
Other reinsurers balances <$20 million	  	 	1,044	  	 	111	  	10.6	%	
Mandatory pools and government agencies	  	 	684	  	 	3	  	0.4	%	
Structured settlements	  	 	489	  	 	2	  	0.4	%	
Captives	  	 	1,191	  	 	2	  	0.2	%	
Other (1)	  	 	1,033	  	 	397	  	38.4	%	
 	  			  			  			
Total	  	$	16,441	  	$	779	  	4.7	%	

At September 30, 2005, $12.1 billion of ACE Limited recoverables were from rated reinsurers, of which 95% were rated the equivalent of A- or better by internationally recognized rating agencies.

Top 10 Reinsurers (net of collateral) (2)
	 	Other Reinsurers Balances Greater Than $20 million (net of collateral) (2)
	
American International Group	 	AIOI Insurance	 	ING - Internationale Nederlanden Group	
Berkshire Hathaway Insurance Group	 	Allianz	 	IPCRe Ltd	
Equitas	 	Allied World Assurance	 	IRB - Brasil Resseguros S.A. Group	
Everest Re Group	 	Allstate Group	 	Liberty Mutual Insurance Companies	
GE Insurance Solutions	 	Arch Capital	 	Millea Holdings	
HDI Haftpflichtverband Der Deutschen
Industrie Vag (Hannover)	 	Aspen Insurance Holdings Ltd	 	Mitsui Sumitomo Insurance Company Ltd	
Lloyd’s Of London	 	AVIVA	 	Partner Re	
Munich Re Group	 	AXA	 	Platinum Underwriters	
Swiss Re Group	 	Catalina Holdings Ltd	 	PXRE Reins Corp	
XL Capital Group	 	Chubb Insurance Group	 	QBE Insurance	
 	 	CIGNA	 	Renaissance Re Holdings Ltd	
 	 	CNA Insurance Companies	 	Royal & Sun Alliance Insurance Group	
 	 	Converium Group	 	SCOR Group	
 	 	Dukes Place Holdings	 	Sompo Japan	
 	 	Electric Insurance Company	 	St Paul Travelers Companies	
 	 	Endurance Specialty Holdings Ltd	 	Tawa Uk Ltd.	
 	 	Fairfax Financial	 	Toa Reinsurance Company	
 	 	FM Global Group	 	Trenwick Group	
 	 	Gerling Global Group	 	White Mountains Insurance Group	
 	 	Hartford Insurance Group	 	WR Berkley Corp	
 	 	Independence Blue Cross Group	 	Zurich Financial Services Group	
 
(1)	Other includes amounts recoverable that are in dispute, or are from companies who are in supervision, rehabilitation or liquidation. Our estimate of bad debt reserve associated with Other considers the credit quality of the reinsurer, and whether we have received collateral or other credit protections such as parental guarantees.	
 
(2)	Excludes recoverable amounts from companies who are in supervision, rehabilitation or liquidation, or are captive reinsurers, mandatory pools or voluntary pools.	

Reinsurance Rec-Consolidated	  	Page 25	

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

 	  	General
Collections  (1)
	 	 	Other  (2)
	 	 	Total
	 	
Gross balance at December 31, 2004	  	$	716	 	 	$	494	 	 	$	1,210	 	
Bad debt reserve at 12/31/04	  	 	37	 	 	 	272	 	 	 	309	 	
% of gross	  	 	5.2	%	 	 	55.1	%	 	 	25.5	%	
 	  				 				 				
Net balance at December 31, 2004	  	$	679	 	 	$	222	 	 	$	901	 	
 	  				 				 				
Gross balance at March 31, 2005	  	$	712	 	 	$	492	 	 	$	1,204	 	
Bad debt reserve at 3/31/05	  	 	37	 	 	 	268	 	 	 	305	 	
% of gross	  	 	5.2	%	 	 	54.5	%	 	 	25.3	%	
 	  				 				 				
Net balance at March 31, 2005	  	$	675	 	 	$	224	 	 	$	899	 	
 	  				 				 				
Gross balance at June 30, 2005	  	$	719	 	 	$	496	 	 	$	1,215	 	
Bad debt reserve at 6/30/05	  	 	29	 	 	 	271	 	 	 	300	 	
% of gross	  	 	4.0	%	 	 	54.6	%	 	 	24.7	%	
 	  				 				 				
Net balance at June 30, 2005	  	$	690	 	 	$	225	 	 	$	915	 	
 	  				 				 				
Gross balance at September 30, 2005	  	$	695	 	 	$	479	 	 	$	1,174	 	
Bad debt reserve at 9/30/05	  	 	31	 	 	 	259	 	 	 	290	 	
% of gross	  	 	4.5	%	 	 	54.1	%	 	 	24.7	%	
 	  				 				 				
Net balance at September 30, 2005	  	$	664	 	 	$	220	 	 	$	884	 	
 	  				 				 				
Gross balance at December 31, 2005	  	$	709	 	 	$	500	 	 	$	1,209	 	
Bad debt reserve at 12/31/05	  	 	41	 	 	 	295	 	 	 	336	 	
% of gross	  	 	5.8	%	 	 	59.0	%	 	 	27.8	%	
 	  				 				 				
Net balance at December 31, 2005	  	$	668	 	 	$	205	 	 	$	873	 	

(1)	General collections balances represent amounts in process of collection in the normal course of business, for which we have no indication of dispute or credit issues.	
 
(2)	Other includes amounts recoverable that are in dispute, or are from companies who are in supervision, rehabilitation or liquidation for Brandywine Group and active operations. Our estimation of the reserve for other, considers the merits of the underlying matter, the credit quality of the reinsurer, and whether we have received collateral or other credit protections such as parental guarantees.	

Reinsurance Recoverable 4	  	Page 26	

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

 	  	December 31
2005
	 	 	September 30
2005
	 	 	June 30
2005
	 	 	March 31
2005
	 	 	December 31
2004
	 	
Market Value	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Fixed maturities available for sale	  	$	24,285	 	 	$	22,551	 	 	$	21,136	 	 	$	20,336	 	 	$	22,891	 	
Fixed maturities held to maturity	  	 	3,055	 	 	 	3,126	 	 	 	3,207	 	 	 	3,207	 	 	 	—  	 	
Short-term investments	  	 	2,299	 	 	 	2,212	 	 	 	2,476	 	 	 	2,156	 	 	 	2,163	 	
 	  				 				 				 				 				
Total	  	$	29,639	 	 	$	27,889	 	 	$	26,819	 	 	$	25,699	 	 	$	25,054	 	
 	  				 				 				 				 				
Asset Allocation by Market Value	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Treasury	  	$	1,956	 	 	$	2,274	 	 	$	1,704	 	 	$	1,728	 	 	$	1,551	 	
Agency	  	 	1,506	 	 	 	1,492	 	 	 	1,553	 	 	 	1,517	 	 	 	1,547	 	
Corporate	  	 	7,646	 	 	 	7,718	 	 	 	7,555	 	 	 	7,615	 	 	 	7,614	 	
Mortgage-backed securities	  	 	8,363	 	 	 	6,780	 	 	 	6,169	 	 	 	5,504	 	 	 	5,034	 	
Asset-backed securities	  	 	1,981	 	 	 	1,420	 	 	 	1,444	 	 	 	1,215	 	 	 	1,225	 	
Municipal	  	 	504	 	 	 	565	 	 	 	548	 	 	 	559	 	 	 	566	 	
Non-US	  	 	5,384	 	 	 	5,428	 	 	 	5,370	 	 	 	5,405	 	 	 	5,376	 	
Cash & cash equivalent	  	 	2,299	 	 	 	2,212	 	 	 	2,476	 	 	 	2,156	 	 	 	2,141	 	
 	  				 				 				 				 				
Total	  	$	29,639	 	 	$	27,889	 	 	$	26,819	 	 	$	25,699	 	 	$	25,054	 	
 	  				 				 				 				 				
Credit Quality by Market Value	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
AAA	  	$	18,985	 	 	$	16,994	 	 	$	16,205	 	 	$	14,743	 	 	$	13,890	 	
AA	  	 	2,108	 	 	 	2,369	 	 	 	2,198	 	 	 	2,475	 	 	 	2,634	 	
A	  	 	4,350	 	 	 	4,325	 	 	 	4,295	 	 	 	4,451	 	 	 	4,397	 	
BBB	  	 	2,083	 	 	 	2,054	 	 	 	1,974	 	 	 	2,182	 	 	 	2,275	 	
BB	  	 	945	 	 	 	1,013	 	 	 	1,041	 	 	 	817	 	 	 	774	 	
B	  	 	1,106	 	 	 	1,093	 	 	 	1,060	 	 	 	982	 	 	 	1,041	 	
Other	  	 	62	 	 	 	41	 	 	 	46	 	 	 	49	 	 	 	43	 	
 	  				 				 				 				 				
Total	  	$	29,639	 	 	$	27,889	 	 	$	26,819	 	 	$	25,699	 	 	$	25,054	 	
 	  				 				 				 				 				
Cost/Amortized Cost	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Fixed maturities available for sale	  	$	24,273	 	 	$	22,434	 	 	$	20,825	 	 	$	20,217	 	 	$	22,422	 	
Fixed maturities held to maturity	  	 	3,076	 	 	 	3,125	 	 	 	3,151	 	 	 	3,211	 	 	 	—  	 	
Short term investments	  	 	2,299	 	 	 	2,212	 	 	 	2,476	 	 	 	2,156	 	 	 	2,163	 	
 	  				 				 				 				 				
Subtotal	  	 	29,648	 	 	 	27,771	 	 	 	26,452	 	 	 	25,584	 	 	 	24,585	 	
Equity securities	  	 	1,280	 	 	 	1,210	 	 	 	1,213	 	 	 	1,170	 	 	 	1,061	 	
Other investments	  	 	679	 	 	 	575	 	 	 	562	 	 	 	564	 	 	 	551	 	
 	  				 				 				 				 				
Total	  	$	31,607	 	 	$	29,556	 	 	$	28,227	 	 	$	27,318	 	 	$	26,197	 	
 	  				 				 				 				 				
Avg. duration of fixed maturities, adjusted for int. rate swaps	  	 	2.9 years	 	 	 	3.2 years	 	 	 	3.0 years	 	 	 	3.1 years	 	 	 	3.4 years	 	
Avg. market yield of fixed maturities	  	 	5.0	%	 	 	4.6	%	 	 	4.3	%	 	 	4.5	%	 	 	4.1	%	
Avg. credit quality	  	 	AA	 	 	 	AA	 	 	 	AA	 	 	 	AA	 	 	 	AA	 	

Investments	  	Page 27	

			
	  	ACE Limited	
	  	Investment Portfolio - 2	
	  	(in millions of U.S. dollars)	
	  	(Unaudited)	
 
Investment portfolio
 
Top 10 Exposures - Fixed Maturity Investments

December 31, 2005
	  	 	    	December 31, 2004
	  	 	
General Electric Co	  	$	260	    	General Electric Co	  	$	254	
Citigroup Inc	  	 	220	    	Citigroup Inc	  	 	234	
HSBC Holdings Plc	  	 	203	    	HSBC Holdings Plc	  	 	211	
Morgan Stanley	  	 	164	    	JP Morgan Chase & Co	  	 	147	
JP Morgan Chase & Co	  	 	161	    	General Motors Corp	  	 	135	
Bank of America Corp	  	 	148	    	Bank of America Corp	  	 	131	
Wells Fargo & Co	  	 	139	    	Wells Fargo & Co	  	 	128	
Verizon Communications Inc	  	 	123	    	Morgan Stanley	  	 	123	
Comcast Corp	  	 	122	    	Verizon Communications Inc	  	 	109	
Lehman Brothers Holdings Inc	  	 	102	    	American International Group	  	 	105	

Investments 2	  	Page 28	

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

 	  	Three months ended
December 31, 2005
	 	 	Year ended
December 31, 2005
	 	
 	  	Net Realized
Gains
(Losses) (1)
	 	 	Net Unrealized
Gains
(Losses)
	 	 	Net
Impact
	 	 	Net Realized
Gains
(Losses) (1)
	 	 	Net Unrealized
Gains
(Losses)
	 	 	Net
Impact
	 	
Investment Portfolio Gains (Losses)	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Fixed maturities	  	$	(77	)	 	$	(107	)	 	$	(184	)	 	$	(45	)	 	$	(447	)	 	$	(492	)	
Equity securities	  	 	18	 	 	 	1	 	 	 	19	 	 	 	76	 	 	 	23	 	 	 	99	 	
Equity and fixed income derivatives	  	 	14	 	 	 	—  	 	 	 	14	 	 	 	12	 	 	 	—  	 	 	 	12	 	
Foreign exchange gains (losses)	  	 	2	 	 	 	—  	 	 	 	2	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	
Other	  	 	(1	)	 	 	(10	)	 	 	(11	)	 	 	4	 	 	 	21	 	 	 	25	 	
 	  				 				 				 				 				 				
Total inv. portfolio gains (losses)	  	 	(44	)	 	 	(116	)	 	 	(160	)	 	 	47	 	 	 	(403	)	 	 	(356	)	
Other FAS 133 adjustments	  	 	19	 	 	 	—  	 	 	 	19	 	 	 	29	 	 	 	—  	 	 	 	29	 	
 	  				 				 				 				 				 				
Total gains (losses)	  	 	(25	)	 	 	(116	)	 	 	(141	)	 	 	76	 	 	 	(403	)	 	 	(327	)	
Income tax expense (benefit)	  	 	(17	)	 	 	(21	)	 	 	(38	)	 	 	3	 	 	 	(75	)	 	 	(72	)	
 	  				 				 				 				 				 				
Net gains (losses)	  	$	(8	)	 	$	(95	)	 	$	(103	)	 	$	73	 	 	$	(328	)	 	$	(255	)	

(1)	The quarter includes impairments of $40M for fixed maturities, $10M for equities and $2M for other investments. Year to date includes impairments of $68M for fixed maturities, $16M for equities and $4M for other investments.	

 	  	Three months ended
December 31, 2004
	  	Year ended
December 31, 2004
	 	
 	  	Net Realized
Gains
(Losses) (2)
	  	Net Unrealized
Gains
(Losses)
	 	 	Net
Impact
	  	Net Realized
Gains
(Losses) (2)
	 	 	Net Unrealized
Gains
(Losses)
	 	 	Net
Impact
	 	
Investment Portfolio Gains (Losses)	  	 	 	  	 	 	 	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	
Fixed maturities	  	$	46	  	$	(34	)	 	$	12	  	$	113	 	 	$	(196	)	 	$	(83	)	
Equity securities	  	 	9	  	 	80	 	 	 	89	  	 	84	 	 	 	54	 	 	 	138	 	
Equity and fixed income derivatives	  	 	10	  	 	—  	 	 	 	10	  	 	33	 	 	 	—  	 	 	 	33	 	
Foreign exchange gains (losses)	  	 	3	  	 	—  	 	 	 	3	  	 	1	 	 	 	—  	 	 	 	1	 	
Other	  	 	—  	  	 	27	 	 	 	27	  	 	(21	)	 	 	53	 	 	 	32	 	
 	  			  				 			  				 				 				
Total inv. portfolio gains (losses)	  	 	68	  	 	73	 	 	 	141	  	 	210	 	 	 	(89	)	 	 	121	 	
Other FAS 133 adjustments	  	 	62	  	 	—  	 	 	 	62	  	 	(13	)	 	 	—  	 	 	 	(13	)	
 	  			  				 			  				 				 				
Total gains (losses)	  	 	130	  	 	73	 	 	 	203	  	 	197	 	 	 	(89	)	 	 	108	 	
Income tax expense (benefit)	  	 	12	  	 	7	 	 	 	19	  	 	44	 	 	 	(39	)	 	 	5	 	
 	  			  				 			  				 				 				
Net gains (losses)	  	$	118	  	$	66	 	 	$	184	  	$	153	 	 	$	(50	)	 	$	103	 	

(2)	The quarter includes impairments of $3M for fixed maturities, $4M for equities and $2M for other investments. Year to date includes impairments for $18M for fixed maturities, $9M for equities and $12M for other investments.	

Investment Gains (Losses)	  	Page 29	

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

 	  	December 31
2005
	 	 	September 30
2005
	 	 	June 30
2005
	 	 	March 31
2005
	 	 	December 31
2004
	 	 	December 31
2003
	 	
Total short-term debt	  	$	300	 	 	$	446	 	 	$	147	 	 	$	147	 	 	$	146	 	 	$	546	 	
Total long-term debt	  	 	1,811	 	 	 	1,564	 	 	 	1,849	 	 	 	1,849	 	 	 	1,849	 	 	 	1,349	 	
 	  				 				 				 				 				 				
Total debt	  	 	2,111	 	 	 	2,010	 	 	 	1,996	 	 	 	1,996	 	 	 	1,995	 	 	 	1,895	 	
							
Total trust preferreds	  	 	309	 	 	 	412	 	 	 	412	 	 	 	412	 	 	 	412	 	 	 	475	 	
							
Perpetual preferred	  	 	557	 	 	 	557	 	 	 	557	 	 	 	557	 	 	 	557	 	 	 	557	 	
Ordinary shareholders’ equity	  	 	11,245	 	 	 	9,672	 	 	 	9,942	 	 	 	9,413	 	 	 	9,288	 	 	 	8,266	 	
 	  				 				 				 				 				 				
Total shareholders’ equity	  	$	11,802	 	 	$	10,229	 	 	$	10,499	 	 	$	9,970	 	 	$	9,845	 	 	$	8,823	 	
 	  				 				 				 				 				 				
Total capitalization	  	$	14,222	 	 	$	12,651	 	 	$	12,907	 	 	$	12,378	 	 	$	12,252	 	 	$	11,193	 	
Tangible shareholders’ equity (1)	  	$	9,099	 	 	$	7,526	 	 	$	7,796	 	 	$	7,275	 	 	$	7,145	 	 	$	6,025	 	
							
Leverage ratios	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Debt/ total capitalization	  	 	14.8	%	 	 	15.9	%	 	 	15.5	%	 	 	16.1	%	 	 	16.3	%	 	 	16.9	%	
Debt plus trust preferreds/ total capitalization	  	 	17.0	%	 	 	19.1	%	 	 	18.7	%	 	 	19.5	%	 	 	19.6	%	 	 	21.2	%	
Debt/ tangible equity	  	 	23.2	%	 	 	26.7	%	 	 	25.6	%	 	 	27.4	%	 	 	27.9	%	 	 	31.5	%	
Debt plus trust preferreds/ tangible equity	  	 	26.6	%	 	 	32.2	%	 	 	30.9	%	 	 	33.1	%	 	 	33.7	%	 	 	39.3	%	
Debt plus total preferred stock/ total capitalization	  	 	20.9	%	 	 	23.5	%	 	 	23.0	%	 	 	24.0	%	 	 	24.2	%	 	 	26.2	%	
 
(1)	Tangible equity is equal to shareholders’ equity less goodwill.	

Capital Structure	  	Page 30	

			
	  	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
	 	
 	  	2005
	 	 	2004
	 	 	2005
	 	 	2004
	 	
Numerator	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income excluding net realized gains (losses) (1)	  	$	245	 	 	$	160	 	 	$	956	 	 	$	1,000	 	
Perpetual preferred dividend	  	 	(12	)	 	 	(12	)	 	 	(45	)	 	 	(45	)	
 	  				 				 				 				
Income to ordinary shares, excl. net realized gains (losses)	  	 	233	 	 	 	148	 	 	 	911	 	 	 	955	 	
Net realized gains (losses), net of income tax	  	 	(8	)	 	 	118	 	 	 	73	 	 	 	153	 	
 	  				 				 				 				
Net income (loss) available to the holders of ordinary shares	  	$	225	 	 	$	266	 	 	$	984	 	 	$	1,108	 	
 	  				 				 				 				
Rollforward of ordinary shares	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Ordinary shares - beginning of period	  	 	288,672,450	 	 	 	284,112,866	 	 	 	284,478,525	 	 	 	279,897,193	 	
Issued (Public Offering)	  	 	32,909,170	 	 	 	—  	 	 	 	32,909,170	 	 	 	—  	 	
Issued under employee stock purchase plan	  	 	235	 	 	 	45	 	 	 	216,504	 	 	 	239,776	 	
Stock (cancelled) granted	  	 	(38,719	)	 	 	(52,375	)	 	 	990,406	 	 	 	790,984	 	
Issued for option exercises	  	 	1,779,450	 	 	 	417,989	 	 	 	4,727,981	 	 	 	3,550,572	 	
 	  				 				 				 				
Ordinary shares - end of period	  	 	323,322,586	 	 	 	284,478,525	 	 	 	323,322,586	 	 	 	284,478,525	 	
 	  				 				 				 				
Denominator	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Weighted average shares outstanding	  	 	317,061,215	 	 	 	281,308,706	 	 	 	292,401,343	 	 	 	280,271,225	 	
Effect of other dilutive securities	  	 	6,296,293	 	 	 	4,739,358	 	 	 	4,898,540	 	 	 	5,214,247	 	
 	  				 				 				 				
Adj. wtd. avg. shares outstanding and assumed conversions	  	 	323,357,508	 	 	 	286,048,064	 	 	 	297,299,883	 	 	 	285,485,472	 	
 	  				 				 				 				
Basic earnings per share	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income excluding net realized gains (losses) (1)	  	$	0.74	 	 	$	0.53	 	 	$	3.12	 	 	$	3.40	 	
Net realized gains (losses), net of income tax	  	 	(0.03	)	 	 	0.42	 	 	 	0.25	 	 	 	0.55	 	
 	  				 				 				 				
Net income (loss)	  	$	0.71	 	 	$	0.95	 	 	$	3.37	 	 	$	3.95	 	
 	  				 				 				 				
Diluted earnings per share	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income excluding net realized gains (losses) (1)	  	$	0.72	 	 	$	0.52	 	 	$	3.06	 	 	$	3.34	 	
Net realized gains (losses), net of income tax	  	 	(0.02	)	 	 	0.41	 	 	 	0.25	 	 	 	0.54	 	
 	  				 				 				 				
Net income (loss)	  	$	0.70	 	 	$	0.93	 	 	$	3.31	 	 	$	3.88	 	

(1)	See page 32 Non-GAAP Financial Measures.	

Earnings per share	  	Page 31	

			
	  	ACE Limited	
	  	Non-GAAP Financial Measures	
	  	(in millions of U.S. dollars)	
	  	(Unaudited)	
 
Regulation G - Non-GAAP Financial Measures
 
In presenting our results, we have included and discussed certain non-GAAP measures. These non-GAAP measures, which may be defined differently by other companies, are important for an understanding of our overall results of operations; however, they should not be viewed as a substitute for measures determined in accordance with GAAP. A reconciliation of book value per share is provided on page 33.
 
In presenting our segment operating results we have shown our performance with reference to underwriting results. Underwriting results are calculated by subtracting losses and loss expenses, life and annuity benefits, policy acquisition costs and administrative expenses from net premiums earned. We use underwriting results and operating ratios to monitor the results of our operations without the impact of certain factors, including investment income, other income and expenses, interest and income tax expense and net realized gains (losses).
 
The following non-GAAP measure is a common performance measurement and is defined as income (loss) excluding net realized gains (losses) and the tax expense on net realized gains (losses). We believe this presentation enhances the understanding of our results of operations by highlighting the underlying profitability of our insurance business. We exclude net realized gains (losses) because the amount of these gains (losses) is heavily influenced by, and fluctuates in part, according to the availability of market opportunities. We believe these amounts are largely independent of our business and including them would distort the analysis of trends. Income excluding net realized gains (losses) should not be viewed as a substitute for net income determined in accordance with generally accepted accounting principles (GAAP).

 	  	4Q-05
	 	 	3Q-05
	 	 	2Q-05
	  	1Q-05
	 	 	4Q-04
	  	Full Year
2005
	  	Full Year
2004
	
Net income (loss), as reported	  	$	237	 	 	$	(112	)	 	$	467	  	$	437	 	 	$	278	  	$	1,029	  	$	1,153	
Net realized gains (losses)	  	 	(25	)	 	 	83	 	 	 	32	  	 	(14	)	 	 	130	  	 	76	  	 	197	
Income tax expense (benefit) on net realized gains (losses)	  	 	(17	)	 	 	8	 	 	 	8	  	 	4	 	 	 	12	  	 	3	  	 	44	
 	  				 				 			  				 			  			  			
Income (loss) excluding net realized gains (losses)	  	$	245	 	 	$	(187	)	 	$	443	  	$	455	 	 	$	160	  	$	956	  	$	1,000	

We also present income excluding net realized gains (losses), catastrophe losses and A&E, net of tax because those losses are deemed to be significant for the quarter and the year. Catastrophes are not predictable and cause significant variability in periodic earnings. On pages 13 and 14 we have presented net premium written, net premium earned, loss ratios, expense ratios and combined ratios excluding catastrophes and A&E as we believe this separate presentation is meaningful and useful for users of our financial information.

Reconciliation Non-GAAP	  	Page 32	

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

 	  	December 31
2005
	 	 	September 30
2005
	 	 	June 30
2005
	 	 	March 31
2005
	 	 	December 31
2004
	 	
Shareholders’ equity	  	$	11,802	 	 	$	10,229	 	 	$	10,499	 	 	$	9,970	 	 	$	9,845	 	
Proceeds from issuance of preferred shares	  	 	(557	)	 	 	(557	)	 	 	(557	)	 	 	(557	)	 	 	(557	)	
 	  				 				 				 				 				
Numerator for book value per share calculation	  	 	11,245	 	 	 	9,672	 	 	 	9,942	 	 	 	9,413	 	 	 	9,288	 	
Less: goodwill	  	 	2,703	 	 	 	2,703	 	 	 	2,703	 	 	 	2,695	 	 	 	2,700	 	
 	  				 				 				 				 				
Numerator for tangible book value per share	  	$	8,542	 	 	$	6,969	 	 	$	7,239	 	 	$	6,718	 	 	$	6,588	 	
 	  				 				 				 				 				
Denominator	  	 	323,322,586	 	 	 	288,672,450	 	 	 	288,073,439	 	 	 	287,353,327	 	 	 	284,478,525	 	
 	  				 				 				 				 				
Book value per ordinary share	  	$	34.78	 	 	$	33.51	 	 	$	34.51	 	 	$	32.76	 	 	$	32.65	 	
Tangible book value per ordinary share	  	$	26.42	 	 	$	24.14	 	 	$	25.13	 	 	$	23.38	 	 	$	23.16	 	

Reconciliation Book Value	  	Page 33	

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

 	  	4Q-05
	 	 	3Q-05
	 	 	2Q-05
	 	 	1Q-05
	 	 	4Q-04
	 	 	2005
	 	 	2004
	 	
Net income (loss)	  	$	237	 	 	$	(112	)	 	$	467	 	 	$	437	 	 	$	278	 	 	$	1,029	 	 	$	1,153	 	
Net unrealized appreciation (depreciation) on investments	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Unrealized appreciation (depreciation) on investments	  	 	(130	)	 	 	(78	)	 	 	247	 	 	 	(301	)	 	 	169	 	 	 	(262	)	 	 	183	 	
Reclassification adjustment for net realized gains (losses) included in net income	  	 	16	 	 	 	(47	)	 	 	(56	)	 	 	(48	)	 	 	(96	)	 	 	(135	)	 	 	(272	)	
Amortization of net unrealized appreciation related to held to maturity securities	  	 	(2	)	 	 	(2	)	 	 	(2	)	 	 	—  	 	 	 	—  	 	 	 	(6	)	 	 	—  	 	
Cumulative translation adjustment	  	 	(35	)	 	 	(25	)	 	 	(68	)	 	 	(11	)	 	 	126	 	 	 	(139	)	 	 	131	 	
Minimum pension liability adjustment	  	 	1	 	 	 	1	 	 	 	4	 	 	 	2	 	 	 	(45	)	 	 	8	 	 	 	(43	)	
Income tax (expense) benefit related to other comprehensive income items	  	 	30	 	 	 	40	 	 	 	(21	)	 	 	72	 	 	 	(34	)	 	 	121	 	 	 	22	 	
 	  				 				 				 				 				 				 				
Other comprehensive income (loss)	  	 	(120	)	 	 	(111	)	 	 	104	 	 	 	(286	)	 	 	120	 	 	 	(413	)	 	 	21	 	
 	  				 				 				 				 				 				 				
Comprehensive income (loss)	  	$	117	 	 	$	(223	)	 	$	571	 	 	$	151	 	 	$	398	 	 	$	616	 	 	$	1,174	 	

			
Comprehensive Income	  	Page 34	

			
	  	ACE Limited	
	  	Glossary	
 
Annualized return on ordinary shareholders’ equity (ROE): Income (loss) excluding net realized gains (losses) less perpetual preferred securities divided by average ordinary shareholders’ equity for the period. To annualize a quarterly rate multiply by four.
 
Combined ratio: The sum of the loss and loss expense ratio, acquisition cost ratio and the administrative expense ratio for the property and casualty and financial services operations. Calculated on a GAAP basis.
 
Book value per ordinary share: Ordinary shareholders’ equity divided by the shares outstanding.
 
Tangible book value per ordinary share: Ordinary shareholders’ equity less goodwill divided by the shares outstanding.
 
Effective tax rate: Income tax expense divided by the sum of income tax expense and income (loss) excluding net realized gains (losses).
 
FAS 115: Unrealized gains (losses) on investments and the deferred tax component included in shareholders’ equity.
 
Life underwriting income: Net premium earned and net investment income less future policy benefits, acquisition costs and administrative expenses.
 
NM: Not meaningful.
 
Ordinary shareholders’ equity: Shareholders’ equity less perpetual preferred shares.
 
P & C: Property and casualty.
 
Property and casualty combined ratios: Loss and loss expense ratios, policy acquisition cost ratios and administrative expense ratios excluding life reinsurance business and financial services segment. Calculated on a GAAP basis.
 
Return on ordinary shareholders’ equity (ROE): Income (loss) excluding net realized gains (losses) less perpetual preferred securities divided by average ordinary shareholders’ equity.
 
Tangible equity: Shareholders’ equity less goodwill.
 
Total capitalization: Short-term debt, long-term debt, trust preferreds, perpetual preferred shares and shareholders’ equity.
 
YTD: Year to date.

Glossary	  	Page 35