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) – October 27, 2009
 
ACE LIMITED
(Exact name of registrant as specified in its charter)

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

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

 

Item 2.02.	Results of Operations and Financial Condition	
 
On October 27, 2009, ACE Limited issued a press release reporting its third quarter 2009 results and the availability of its third 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 October 27, 2009, reporting third quarter results	
		
99.2	  	Third Quarter 2009 Financial Supplement	

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

ACE LIMITED	
		
By:	 	/s/ Philip V. Bancroft	
	 	Philip V. Bancroft	
	 	Chief Financial Officer 	
 
DATE: October 27, 2009

EXHIBIT INDEX

Number	  	Description	  	Method of Filing	
			
99.1	  	Press release, dated October 27, 2009, reporting third quarter results	  	Furnished herewith	
			
99.2	  	Third Quarter 2009 Financial Supplement	  	Furnished herewith	

Exhibit 99.1

	 	ACE Limited
 
Bärengasse 32
 
CH-8001 Zürich
 
Switzerland	 	+41 (0)43 456 76 00 main
 
+41 (0)43 456 76 01  fax

www.acelimited.com	  		
FOR IMMEDIATE RELEASE

	 	                    Investor Contact:	 	Helen M. Wilson	
	 		 	(441) 299-9283	
	 		 	helen.wilson@acegroup.com	
			
	 	                    Media Contact:	 	Stephen M. Wasdick	
	 		 	(212) 827-4444	
	 		 	stephen.wasdick@acegroup.com	
ACE REPORTS THIRD QUARTER 2009 NET INCOME
OF $494 MILLION; OPERATING INCOME OF $701 MILLION, UP 39%;
BOOK VALUE, UP 30% YEAR TO DATE, AT ALL-TIME HIGH
ZURICH, Switzerland, October 27, 2009 — ACE Limited (NYSE: ACE) today reported net income for the quarter ended September 30, 2009, of $1.46 per share, compared with $0.16 per share for the same quarter last year. (1) Income excluding net realized gains (losses) was $2.07 per share, compared with $1.50 per share. (2) Net realized and unrealized gains after tax were $1.4 billion for the quarter. Book value increased $2.2 billion during the quarter, up 13% from June 30, 2009. Book value per share now stands at $55.71. Annualized return on average equity was 15.9%. (3) The property and casualty (P&C) combined ratio was 88.1%.
Third Quarter Summary
(in millions, except per share amounts)
(Unaudited)

   	  	 	 	 	 	 	 	 	 	 	(Per Share - Diluted)	 	
 	  	2009	 	 	2008	 	 	Change	 	 	2009	 	 	2008	 	 	Change	 	
Net income	  	$	494	 	 	$	54	 	 	815	% 	 	$	1.46	 	 	$	0.16	 	 	813	% 	
							
Net realized gains (losses), net of tax	  	 	(207	) 	 	 	(450	) 	 	—  	  	 	 	(0.61	) 	 	 	(1.34	) 	 	—  	  	
							
Income excluding net realized gains (losses), net of tax (2)	  	$	701	  	 	$	504	 	 	39	% 	 	$	2.07	 	 	$	1.50	 	 	38	% 	
Net income for the nine months ended September 30, 2009, was $4.73 per share, compared with $3.45 per share for 2008. For the nine months ended September 30, 2009, income excluding net realized gains (losses) was $6.16 per share, compared with $5.81 per share for 2008. The P&C combined ratio for the nine months ended September 30, 2009, was 87.8%. Book value increased $4.3 billion, up 30% during the nine months ended September 30, 2009.

Nine Months Summary
(in millions, except per share amounts)
(Unaudited)

 	  	 	 	 	 	 	 	 	 	 	(Per Share - Diluted)	 	
 	  	2009	 	 	2008	 	 	Change	 	 	2009	 	 	2008	 	 	Change	 	
Net income	  	$	1,596	 	 	$	1,177	 	 	36	% 	 	$	4.73	 	 	$	3.45	 	 	37	% 	
							
Net realized gains (losses), net of tax	  	 	(480	) 	 	 	(790	) 	 	—  	  	 	 	(1.43	) 	 	 	(2.36	) 	 	—  	  	
							
Income excluding net realized gains (losses), net of tax	  	$	2,076	 	 	$	1,967	 	 	6	% 	 	$	6.16	 	 	$	5.81	 	 	6	% 	
Evan G. Greenberg, Chairman and Chief Executive Officer of ACE Limited, commented: “ACE had an excellent third quarter with all divisions of the company performing well and contributing to results. Our book value grew 13% in the quarter, 30% for the year, and stands at an all-time high. After-tax operating income increased 39% from the same period last year, and our return on equity was 16%.
“Our P&C combined ratio was 88.1% and benefited from positive prior period reserve development and light catastrophe losses in the period. Excluding those items, our current accident year combined ratio for the quarter and the year was 93.3% and 91.4%, respectively – again, an excellent result. In addition, as a result of our underwriting discipline, while we sacrificed some growth, we achieved positive rate change in the quarter of about 2%.
“Premium revenue growth was impacted in the quarter by recessionary conditions, a strong U.S. dollar and a competitive insurance market. Growth in the period benefited, however, from customers seeking ACE’s strong balance sheet as well as our broad product portfolio and global presence. By the nature of some of our businesses, growth can be volatile quarter to quarter, but more stable when viewed over a longer period of time. In fact, we expect meaningfully stronger revenue growth in the fourth quarter regardless of foreign exchange.”
Other operating highlights for the quarter ended September 30, 2009, were as follows (1)
 
 	•	 	Net premiums written and earned decreased 4% and 6%, respectively. Excluding the impact of foreign exchange, net premiums written and earned were flat and decreased 3%, respectively.	
 
 	•	 	The P&C combined ratio was 88.1% compared with 97.9%. The P&C combined ratio year-to-date was 87.8% compared with 90.4%.	
 
 	•	 	Favorable prior period development pre-tax was $203 million compared with $277 million in 2008.	
 
 	•	 	P&C pre-tax underwriting income increased to $359 million compared with $66 million.	
 
 	•	 	Catastrophe losses were $45 million compared with $411 million.	
 
 	•	 	Operating cash flow was $1 billion.	
 
 	•	 	Net loss reserves increased $344 million. Excluding foreign exchange valuation, net loss reserves increased $135 million. Year-to-date net loss reserves increased $923 million. Excluding foreign exchange valuation, net loss reserves increased $429 million.	
 
 	•	 	Net investment income decreased 2% to $511 million. Invested assets increased 7% to $46.7 billion.	
 
 	•	 	Return on average equity was 15.9%. (3) Year-to-date return on average equity was 16.7%.	
 
 	•	 	Book value per share (4 ) increased 13% from $49.27 at June 30, 2009, to $55.71, while it increased 29% from December 31, 2008.	
 
Page 2/7

 	•	 	Tangible book value per share (4 ) increased 17% from $38.10 at June 30, 2009, to $44.49, while it increased 39% from December 31, 2008.	
 
 	•	 	Net realized and unrealized gains after tax from our investment portfolio totaled approximately $1.7 billion. Net realized losses from derivative accounting related to the guaranteed minimum income benefits (GMIBs) of our life reinsurance business, net of associated hedges, were approximately $209 million. As the company’s credit spreads improved, derivative accounting required an increase in our fair value liability due to our increased ability to pay. There was also an impact due to lower interest rates.	
Details of our financial results for our business segments are available in the ACE Limited Financial Supplement. Key segment items for the quarter ended September 30, 2009, include:
 
 	•	 	Insurance-North American: Net premiums written decreased 6%. Excluding the impact of prior year crop insurance, net premiums written were flat. The combined ratio was 91.3% compared with 104.1%.	
 
 	•	 	Insurance-Overseas General: Net premiums written decreased 7%. Adjusting for the impact of foreign exchange, they increased 2%. The combined ratio was 87.4% compared with 89.9%.	
 
 	•	 	Global Reinsurance: Net premiums written increased 18%. The combined ratio was 58.5% compared with 91.5%.	
 
 	•	 	Life: Net premiums written increased 7%. Life underwriting income increased 12% to $95 million.	
Please refer to the ACE Limited Financial Supplement dated September 30, 2009, which is posted on the company’s website in the Investor Information section, and access Financial Reports for more detailed information on individual segment performance, together with additional disclosure on reinsurance recoverable, loss reserves, investment portfolio and capital structure. The URL reference is: http://media.corporate-ir.net/media_files/irol/10/100907/fin_supp_september 30 2009.xls .
ACE will host its third quarter earnings conference call and webcast on Wednesday, October 28, 2009, beginning at 8:30 a.m. ET. The earnings conference call will be available via live and archived webcast at www.acelimited.com or by dialing 888-359-3610 (within the United States) or 719-457-2605 (international); passcode 2934041. Please refer to the ACE Limited website in the Investor Information section under Calendar of Events for details. A replay of the call will be available for approximately one month. To listen to the replay, dial: 888-203-1112 (in the United States) or 719-457-0820 (international); passcode 2934041.
The ACE Group is a global leader in insurance and reinsurance serving a diverse group of clients. Headed by ACE Limited, 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)	All comparisons are with the same periods last year unless specifically stated.	
 
(2)	Non-GAAP Financial Measures:	
 
    	Operating income or income excluding net realized gains (losses), net of tax is a common performance measurement for insurance companies. We believe this presentation enhances the understanding of our results of operations by highlighting the underlying profitability of our insurance business. We exclude net realized gains (losses) and net realized gains (losses) included in other income (expense) related to partially-owned entities because the amount of these gains (losses) do not relate to their respective operations.	
 
    	Underwriting income is calculated by subtracting losses and loss expenses, policy benefits, policy acquisition costs and administrative expenses from net premiums earned. We use underwriting income and operating ratios to monitor the results of our operations without the impact of certain factors, including net investment income, other income (expense), interest and income tax expense and net realized gains (losses). Life underwriting income includes net investment income. We believe the use of these measures enhances the understanding of our results of operations by highlighting the underlying profitability of our insurance business.	
 
    	See reconciliation of Non-GAAP Financial Measures on page 26 in the financial supplement.	
 
    	These measures should not be viewed as a substitute for net income determined in accordance with generally accepted accounting principles (GAAP).	
 
Page 3/7

(3)	Calculated using income excluding net realized gains (losses) less perpetual preferred securities divided by average common shareholders’ equity for the period. To annualize a quarterly rate, multiply by four.	
 
(4)	Book value per common share is common shareholders’ equity divided by the shares outstanding. Tangible book value per common share is common shareholders’ equity less goodwill and other intangible assets divided by the shares outstanding.	
NM – not meaningful comparison
Cautionary Statement Regarding Forward-Looking Statements :
Forward-looking statements made in this press release, such as those related to revenue growth and company performance reflect the company’s current views 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, matters described could be affected by competition, pricing and policy term trends, the levels of new and renewal business achieved, market acceptance, 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 and settlement terms, the amount and timing of reinsurance recoverable, credit developments among reinsurers, rating agency action, possible terrorism or the outbreak and effects of war and economic, political, regulatory, insurance and reinsurance business conditions, as well as management’s response to these factors, and other factors identified in the company’s filings with the Securities and Exchange Commission. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the dates on which they are made. The company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
(tables to follow)
 
Page 4/7

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

 	  	September 30
2009	  	December 31
2008	
Assets	  			  			
Investments	  	$	45,921	  	$	39,715	
Cash	  	 	742	  	 	867	
Insurance and reinsurance balances receivable	  	 	3,626	  	 	3,453	
Reinsurance recoverable on losses and loss expenses	  	 	13,689	  	 	13,917	
Other assets	  	 	13,843	  	 	14,105	
	  	 	 	  	 	 	
Total assets	  	$	77,821	  	$	72,057	
	  	 	 	  	 	 	
Liabilities	  			  			
Unpaid losses and loss expenses	  	$	37,871	  	$	37,176	
Unearned premiums	  	 	6,369	  	 	5,950	
Other liabilities	  	 	14,848	  	 	14,485	
	  	 	 	  	 	 	
Total liabilities	  	 	59,088	  	 	57,611	
	  	 	 	  	 	 	
Shareholders’ equity	  			  			
Total shareholders’ equity	  	 	18,733	  	 	14,446	
	  	 	 	  	 	 	
Total liabilities and shareholders’ equity	  	$	77,821	  	$	72,057	
	  	 	 	  	 	 	
Book value per common share (4) 	  	$	55.71	  	$	43.30	
 
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
September 30	 	 	Nine Months Ended
September 30	 	
 	  	2009	 	 	2008	 	 	2009	 	 	2008	 	
Gross premiums written	  	$	5,005	 	 	$	5,220	 	 	$	14,657	 	 	$	14,922	 	
Net premiums written	  	 	3,155	 	 	 	3,276	 	 	 	9,994	 	 	 	10,028	 	
Net premiums earned	  	 	3,393	 	 	 	3,609	 	 	 	9,853	 	 	 	9,977	 	
					
Losses and loss expenses	  	 	1,885	 	 	 	2,369	 	 	 	5,522	 	 	 	5,843	 	
Policy benefits	  	 	79	 	 	 	91	 	 	 	256	 	 	 	243	 	
Policy acquisition costs	  	 	567	 	 	 	581	 	 	 	1,571	 	 	 	1,618	 	
Administrative expenses	  	 	451	 	 	 	457	 	 	 	1,325	 	 	 	1,293	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Underwriting income (2)	  	 	411	 	 	 	111	 	 	 	1,179	 	 	 	980	 	
					
Net investment income	  	 	511	 	 	 	520	 	 	 	1,519	 	 	 	1,541	 	
Net realized gains (losses)	  	 	(223	) 	 	 	(510	) 	 	 	(569	) 	 	 	(989	) 	
Interest expense	  	 	60	 	 	 	68	 	 	 	169	 	 	 	176	 	
Other income (expense)	  	 	(51	) 	 	 	(6	) 	 	 	(44	) 	 	 	104	 	
Income tax expense	  	 	94	 	 	 	(7	) 	 	 	320	 	 	 	283	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income	  	 	494	 	 	 	54	 	 	 	1,596	 	 	 	1,177	 	
Preference share dividend	  	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	(24	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income available to holders of common shares	  	$	494	 	 	$	54	 	 	$	1,596	 	 	$	1,153	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Diluted earnings per share:	  				 				 				 				
Income excluding net realized gains (losses) (2)	  	$	2.07	 	 	$	1.50	 	 	$	6.16	 	 	$	5.81	 	
Net income	  	$	1.46	 	 	$	0.16	 	 	$	4.73	 	 	$	3.45	 	
					
Weighted average diluted shares outstanding	  	 	338.4	 	 	 	335.3	 	 	 	337.1	 	 	 	334.5	 	
					
Loss and loss expense ratio	  	 	58.2	% 	 	 	69.5	% 	 	 	58.7	% 	 	 	61.5	% 	
Policy acquisition cost ratio	  	 	16.7	% 	 	 	16.3	% 	 	 	16.0	% 	 	 	16.3	% 	
Administrative expense ratio	  	 	13.2	% 	 	 	12.1	% 	 	 	13.1	% 	 	 	12.6	% 	
Combined ratio	  	 	88.1	% 	 	 	97.9	% 	 	 	87.8	% 	 	 	90.4	% 	
 
Page 6/7

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

   	  	Three Months Ended
September 30	 	 	Nine Months Ended
September 30	 	
 	  	2009	 	 	2008	 	 	2009	 	 	2008	 	
Gross Premiums Written	  				 				 				 				
Insurance - North American	  	$	2,730	 	 	$	2,987	 	 	$	7,472	 	 	$	7,886	 	
Insurance - Overseas General	  	 	1,677	 	 	 	1,678	 	 	 	5,080	 	 	 	5,332	 	
Global Reinsurance	  	 	215	 	 	 	174	 	 	 	953	 	 	 	791	 	
Life	  	 	383	 	 	 	381	 	 	 	1,152	 	 	 	913	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total	  	$	5,005	 	 	$	5,220	 	 	$	14,657	 	 	$	14,922	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net Premiums Written	  				 				 				 				
Insurance - North American	  	$	1,374	 	 	$	1,461	 	 	$	4,220	 	 	$	4,332	 	
Insurance - Overseas General	  	 	1,203	 	 	 	1,293	 	 	 	3,795	 	 	 	4,081	 	
Global Reinsurance	  	 	206	 	 	 	174	 	 	 	894	 	 	 	788	 	
Life	  	 	372	 	 	 	348	 	 	 	1,085	 	 	 	827	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total	  	$	3,155	 	 	$	3,276	 	 	$	9,994	 	 	$	10,028	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net Premiums Earned	  				 				 				 				
Insurance - North American	  	$	1,467	 	 	$	1,583	 	 	$	4,319	 	 	$	4,302	 	
Insurance - Overseas General	  	 	1,317	 	 	 	1,425	 	 	 	3,747	 	 	 	4,087	 	
Global Reinsurance	  	 	247	 	 	 	257	 	 	 	726	 	 	 	777	 	
Life	  	 	362	 	 	 	344	 	 	 	1,061	 	 	 	811	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total	  	$	3,393	 	 	$	3,609	 	 	$	9,853	 	 	$	9,977	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income Excluding Net Realized Gains (Losses) (2) 	  				 				 				 				
Insurance - North American	  	$	299	 	 	$	153	 	 	$	927	 	 	$	789	 	
Insurance - Overseas General	  	 	233	 	 	 	252	 	 	 	632	 	 	 	787	 	
Global Reinsurance	  	 	158	 	 	 	93	 	 	 	487	 	 	 	385	 	
Life	  	 	74	 	 	 	66	 	 	 	193	 	 	 	164	 	
Corporate	  	 	(63	) 	 	 	(60	) 	 	 	(163	) 	 	 	(158	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total	  	$	701	 	 	$	504	 	 	$	2,076	 	 	$	1,967	 	

Page 7/7

Exhibit 99.2

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

					
	 	ACE Limited
Financial Supplement Table of Contents	 		

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

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

 	  	Three months ended
September 30	 	 	% Change
3Q-09 vs.
3Q-08	 	 	Constant $
2008  (2)	  	% Change
3Q-09 vs.
3Q-08  (2)	 	 	Nine months ended
September 30	 	 	% Change
YTD-09 vs.
YTD-08	 	 	Constant $
2008  (2)	  	% Change
YTD-09 vs.
YTD-08  (2)	 	
 	  	2009	 	 	2008	 	 			 		  			 	2009	 	 	2008	 	 			 		  			
											
Gross premiums written	  	$	5,005	  	 	$	5,220	  	 	-4	% 	 	$	5,070	  	-1	% 	 	$	14,657	  	 	$	14,922	  	 	-2	% 	 	$	14,250	  	3	% 	
											
Net premiums written	  	$	3,155	  	 	$	3,276	  	 	-4	% 	 	$	3,157	  	0	% 	 	$	9,994	  	 	$	10,028	  	 	0	% 	 	$	9,510	  	5	% 	
											
Net premiums earned	  	$	3,393	  	 	$	3,609	  	 	-6	% 	 	$	3,483	  	-3	% 	 	$	9,853	  	 	$	9,977	  	 	-1	% 	 	$	9,439	  	4	% 	
											
Net investment income	  	$	511	  	 	$	520	  	 	-2	% 	 	$	511	  	0	% 	 	$	1,519	  	 	$	1,541	  	 	-1	% 	 	$	1,506	  	1	% 	
											
Net income	  	$	494	  	 	$	54	  	 	815	% 	 			  			 	$	1,596	  	 	$	1,177	  	 	36	% 	 			  			
											
Income excluding net realized gains (losses) (1)	  	$	701	  	 	$	504	  	 	39	% 	 	$	478	  	47	% 	 	$	2,076	  	 	$	1,967	  	 	6	% 	 	$	1,873	  	11	% 	
											
Comprehensive income (loss)	  	$	2,270	  	 	$	(915	) 	 	NM	  	 			  			 	$	4,297	  	 	$	(609	) 	 	NM	  	 			  			
											
Operating cash flow	  	$	1,010	  	 	$	1,058	  	 	-5	% 	 			  			 	$	2,332	  	 	$	3,140	  	 	-26	% 	 			  			
											
Combined ratio	  				 				 			 			  			 				 				 			 			  			
Loss and loss expense ratio	  	 	58.2	% 	 	 	69.5	% 	 			 			  			 	 	58.7	% 	 	 	61.5	% 	 			 			  			
Underwriting and administrative expense ratio	  	 	29.9	% 	 	 	28.4	% 	 			 			  			 	 	29.1	% 	 	 	28.9	% 	 			 			  			
	  	 	 	 	 	 	 	 	 			 			  			 	 	 	 	 	 	 	 	 			 			  			
Combined ratio	  	 	88.1	% 	 	 	97.9	% 	 			 			  			 	 	87.8	% 	 	 	90.4	% 	 			 			  			
											
Annualized ROE*	  	 	15.9	% 	 	 	12.7	% 	 			 			  			 	 	16.7	% 	 	 	16.5	% 	 			 			  			
Annualized ROE, excluding FAS 115*	  	 	15.8	% 	 	 	12.2	% 	 			 			  			 	 	16.2	% 	 	 	16.2	% 	 			 			  			
											
Effective tax rate on income excluding net realized gains (losses)	  	 	18	% 	 	 	13	% 	 			 			  			 	 	18	% 	 	 	17	% 	 			 			  			
											
Diluted earnings per share	  				 				 			 			  			 				 				 			 			  			
Income excluding net realized gains (losses) (1)	  	$	2.07	  	 	$	1.50	  	 	38	% 	 			  			 	$	6.16	  	 	$	5.81	  	 	6	% 	 			  			
Net income	  	$	1.46	  	 	$	0.16	  	 	813	% 	 			  			 	$	4.73	  	 	$	3.45	  	 	37	% 	 			  			
											
Book value per common share	  	$	55.71	  	 	$	46.06	  	 	21	% 	 			  			 	$	55.71	  	 	$	46.06	  	 	21	% 	 			  			
Tangible book value per common share	  	$	44.49	  	 	$	34.61	  	 	29	% 	 			  			 	$	44.49	  	 	$	34.61	  	 	29	% 	 			  			
Weighted average basic common shares outstanding	  	 	337.2	  	 	 	333.6	  	 			 			  			 	 	336.5	  	 	 	332.5	  	 			 			  			
Weighted average diluted common shares outstanding	  	 	338.4	  	 	 	335.3	  	 			 			  			 	 	337.1	  	 	 	334.5	  	 			 			  			
Debt/total capitalization	  	 	15.6	% 	 	 	17.6	% 	 			 			  			 	 	15.6	% 	 	 	17.6	% 	 			 			  			
 
(1)	See page 26 Non-GAAP Financial Measures.	
(2)	Prior year on a constant dollar basis.	
*	Calculated using income excluding net realized gains (losses)	

Financial Highlights	  	Page 1	

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

 	  	3Q-09	 	 	2Q-09	 	 	1Q-09	 	 	4Q-08	 	 	3Q-08	 	 	YTD
2009	 	 	YTD
2008	 	 	Full Year
2008	 	
Consolidated Results Excluding Life Segment	  				 				 				 				 				 				 				 				
Gross premiums written	  	$	4,622	  	 	$	4,733	  	 	$	4,150	  	 	$	3,906	  	 	$	4,839	  	 	$	13,505	  	 	$	14,009	  	 	$	17,915	  	
Net premiums written	  	 	2,783	  	 	 	3,048	  	 	 	3,078	  	 	 	2,681	  	 	 	2,928	  	 	 	8,909	  	 	 	9,201	  	 	 	11,882	  	
Net premiums earned	  	 	3,031	  	 	 	2,902	  	 	 	2,859	  	 	 	2,867	  	 	 	3,265	  	 	 	8,792	  	 	 	9,166	  	 	 	12,033	  	
Losses and loss expenses	  	 	1,764	  	 	 	1,688	  	 	 	1,704	  	 	 	1,654	  	 	 	2,265	  	 	 	5,156	  	 	 	5,629	  	 	 	7,283	  	
Policy benefits	  	 	—  	  	 	 	1	  	 	 	2	  	 	 	2	  	 	 	5	  	 	 	3	  	 	 	10	  	 	 	12	  	
Policy acquisition costs	  	 	508	  	 	 	468	  	 	 	434	  	 	 	448	  	 	 	533	  	 	 	1,410	  	 	 	1,499	  	 	 	1,947	  	
Administrative expenses	  	 	400	  	 	 	390	  	 	 	362	  	 	 	388	  	 	 	396	  	 	 	1,152	  	 	 	1,150	  	 	 	1,538	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Underwriting income excluding life segment	  	$	359	  	 	$	355	  	 	$	357	  	 	$	375	  	 	$	66	  	 	$	1,071	  	 	$	878	  	 	$	1,253	  	
Life underwriting income excluding investment income	  	 	52	  	 	 	35	  	 	 	21	  	 	 	(26	) 	 	 	45	  	 	 	108	  	 	 	102	  	 	 	76	  	
Net investment income	  	 	511	  	 	 	506	  	 	 	502	  	 	 	521	  	 	 	520	  	 	 	1,519	  	 	 	1,541	  	 	 	2,062	  	
Net realized gains (losses)	  	 	(223	) 	 	 	(225	) 	 	 	(121	) 	 	 	(644	) 	 	 	(510	) 	 	 	(569	) 	 	 	(989	) 	 	 	(1,633	) 	
Interest expense	  	 	60	  	 	 	56	  	 	 	53	  	 	 	54	  	 	 	68	  	 	 	169	  	 	 	176	  	 	 	230	  	
Other income (expense) (1)	  	 	(51	) 	 	 	21	  	 	 	(14	) 	 	 	(65	) 	 	 	(6	) 	 	 	(44	) 	 	 	104	  	 	 	39	  	
Income tax expense (benefit)	  	 	94	  	 	 	101	  	 	 	125	  	 	 	87	  	 	 	(7	) 	 	 	320	  	 	 	283	  	 	 	370	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income	  	$	494	  	 	$	535	  	 	$	567	  	 	$	20	  	 	$	54	  	 	$	1,596	  	 	$	1,177	  	 	$	1,197	  	
Net realized gains (losses)	  	 	(223	) 	 	 	(225	) 	 	 	(121	) 	 	 	(644	) 	 	 	(510	) 	 	 	(569	) 	 	 	(989	) 	 	 	(1,633	) 	
Net realized gains (losses) in other income (expense) (1)	  	 	(43	) 	 	 	8	  	 	 	3	  	 	 	(48	) 	 	 	(23	) 	 	 	(32	) 	 	 	69	  	 	 	21	  	
Tax expense (benefit) on net realized gains (losses)	  	 	(59	) 	 	 	(46	) 	 	 	(16	) 	 	 	(88	) 	 	 	(83	) 	 	 	(121	) 	 	 	(130	) 	 	 	(218	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income excluding net realized gains (losses) (2)	  	$	701	  	 	$	706	  	 	$	669	  	 	$	624	  	 	$	504	  	 	$	2,076	  	 	$	1,967	  	 	$	2,591	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
% Change versus prior year period (3) 	  				 				 				 				 				 				 				 				
Net premiums written	  	 	-5	% 	 	 	-5	% 	 	 	1	% 	 	 	-1	% 	 	 	8	% 	 	 	-3	% 	 	 	4	% 	 	 	2	% 	
Net premiums earned	  	 	-7	% 	 	 	-5	% 	 	 	1	% 	 	 	-3	% 	 	 	7	% 	 	 	-4	% 	 	 	2	% 	 	 	1	% 	
Net premiums written constant $	  	 	-1	% 	 	 	1	% 	 	 	7	% 	 	 	3	% 	 	 	6	% 	 	 	2	% 	 	 	1	% 	 	 	1	% 	
Net premiums earned constant $	  	 	-4	% 	 	 	2	% 	 	 	7	% 	 	 	1	% 	 	 	5	% 	 	 	2	% 	 	 	0	% 	 	 	0	% 	
									
Other ratios	  				 				 				 				 				 				 				 				
Net premiums written/gross premiums written	  	 	60	% 	 	 	64	% 	 	 	74	% 	 	 	69	% 	 	 	61	% 	 	 	66	% 	 	 	66	% 	 	 	66	% 	
Effective tax rate on income excluding net realized gains (losses)	  	 	18	% 	 	 	17	% 	 	 	17	% 	 	 	22	% 	 	 	13	% 	 	 	18	% 	 	 	17	% 	 	 	18	% 	
									
Combined ratio (3) 	  				 				 				 				 				 				 				 				
Loss and loss expense ratio	  	 	58.2	% 	 	 	58.2	% 	 	 	59.7	% 	 	 	57.8	% 	 	 	69.5	% 	 	 	58.7	% 	 	 	61.5	% 	 	 	60.6	% 	
Policy acquisition cost ratio	  	 	16.7	% 	 	 	16.1	% 	 	 	15.2	% 	 	 	15.6	% 	 	 	16.3	% 	 	 	16.0	% 	 	 	16.3	% 	 	 	16.2	% 	
Administrative expense ratio	  	 	13.2	% 	 	 	13.4	% 	 	 	12.6	% 	 	 	13.5	% 	 	 	12.1	% 	 	 	13.1	% 	 	 	12.6	% 	 	 	12.8	% 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Combined ratio	  	 	88.1	% 	 	 	87.7	% 	 	 	87.5	% 	 	 	86.9	% 	 	 	97.9	% 	 	 	87.8	% 	 	 	90.4	% 	 	 	89.6	% 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Expense ratio	  	 	29.9	% 	 	 	29.5	% 	 	 	27.8	% 	 	 	29.1	% 	 	 	28.4	% 	 	 	29.1	% 	 	 	28.9	% 	 	 	29.0	% 	
Expense ratio excluding A&H	  	 	25.3	% 	 	 	25.0	% 	 	 	23.9	% 	 	 	24.5	% 	 	 	24.2	% 	 	 	24.7	% 	 	 	25.1	% 	 	 	24.9	% 	
									
Large losses and other items (before tax) (3) 	  				 				 				 				 				 				 				 				
Reinstatement premiums (expensed) collected	  	$	—  	  	 	$	—  	  	 	$	1	  	 	$	4	  	 	$	(7	) 	 	$	1	  	 	$	(7	) 	 	$	(3	) 	
Catastrophe losses	  	$	45	  	 	$	31	  	 	$	38	  	 	$	67	  	 	$	411	  	 	$	114	  	 	$	500	  	 	$	567	  	
Prior period development excluding Life - unfavorable (favorable) (4)	  	$	(203	) 	 	$	(158	) 	 	$	(68	) 	 	$	(252	) 	 	$	(277	) 	 	$	(429	) 	 	$	(518	) 	 	$	(770	) 	
Loss and loss expense ratio excluding catastophe losses and prior period development	  	 	63.4	% 	 	 	62.6	% 	 	 	60.7	% 	 	 	64.4	% 	 	 	65.3	% 	 	 	62.3	% 	 	 	62.1	% 	 	 	62.7	% 	
 
(1)	Net realized investment and derivative losses related to unconsolidated entities.	
 
(2)	See page 26 Non-GAAP Financial Measures.	
 
(3)	Presented excluding the Life segment to allow for comparison and analysis with earnings guidance. This is a non-GAAP measure.	
 
(4)	For YTD 2008, prior period favorable development of $562 million less $44 million of profit share commission on Crop business settlement.	

Consolidated Results	  	Page 2	

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

 	  	September 30
2009	  	June 30
2009	 	 	March 31
2009	 	 	December 31
2008	 	
 	  	(Unaudited)	  	(Unaudited)	 	 	(Unaudited)	 	 	(Audited)	 	
Assets	  			  				 				 				
Fixed maturities available for sale, at fair value	  	$	38,559	  	$	35,697	  	 	$	31,355	  	 	$	31,155	  	
Fixed maturities held to maturity, at amortized cost	  	 	3,439	  	 	3,517	  	 	 	2,824	  	 	 	2,860	  	
Equity securities, at fair value	  	 	546	  	 	423	  	 	 	854	  	 	 	988	  	
Short-term investments, at fair value	  	 	1,853	  	 	2,081	  	 	 	3,909	  	 	 	3,350	  	
Other investments	  	 	1,524	  	 	1,363	  	 	 	1,298	  	 	 	1,362	  	
	  	 	 	  	 	 	 	 	 	 	 	 	 	 	 	
Total investments	  	 	45,921	  	 	43,081	  	 	 	40,240	  	 	 	39,715	  	
Cash	  	 	742	  	 	654	  	 	 	844	  	 	 	867	  	
Securities lending collateral	  	 	1,522	  	 	1,370	  	 	 	1,376	  	 	 	1,230	  	
Insurance and reinsurance balances receivable	  	 	3,626	  	 	4,016	  	 	 	3,853	  	 	 	3,453	  	
Reinsurance recoverable on losses and loss expenses	  	 	13,689	  	 	13,430	  	 	 	13,713	  	 	 	13,917	  	
Deferred policy acquisition costs	  	 	1,413	  	 	1,376	  	 	 	1,268	  	 	 	1,214	  	
Value of business acquired	  	 	786	  	 	793	  	 	 	785	  	 	 	823	  	
Prepaid reinsurance premiums	  	 	1,727	  	 	1,911	  	 	 	1,593	  	 	 	1,539	  	
Goodwill and other intangible assets	  	 	3,772	  	 	3,756	  	 	 	3,735	  	 	 	3,747	  	
Deferred tax assets	  	 	1,234	  	 	1,579	  	 	 	1,952	  	 	 	1,835	  	
Investments in partially owned insurance companies	  	 	478	  	 	462	  	 	 	886	  	 	 	832	  	
Other assets	  	 	2,911	  	 	3,227	  	 	 	2,882	  	 	 	2,885	  	
	  	 	 	  	 	 	 	 	 	 	 	 	 	 	 	
Total assets	  	$	77,821	  	$	75,655	  	 	$	73,127	  	 	$	72,057	  	

Liabilities	  			  				 				 				
Unpaid losses and loss expenses	  	$	37,871	  	$	37,268	  	 	$	36,931	  	 	$	37,176	  	
Unearned premiums	  	 	6,369	  	 	6,725	  	 	 	6,186	  	 	 	5,950	  	
Future policy benefits	  	 	3,048	  	 	2,984	  	 	 	2,915	  	 	 	2,904	  	
Insurance and reinsurance balances payable	  	 	3,083	  	 	3,075	  	 	 	2,981	  	 	 	2,841	  	
Securities lending payable	  	 	1,574	  	 	1,427	  	 	 	1,463	  	 	 	1,296	  	
Payable for securities purchased	  	 	465	  	 	1,082	  	 	 	1,333	  	 	 	740	  	
Accounts payable, accrued expenses, and other liabilities	  	 	2,848	  	 	2,686	  	 	 	3,023	  	 	 	3,118	  	
Short-term debt	  	 	200	  	 	216	  	 	 	466	  	 	 	471	  	
Long-term debt	  	 	3,321	  	 	3,322	  	 	 	2,802	  	 	 	2,806	  	
Trust preferred securities	  	 	309	  	 	309	  	 	 	309	  	 	 	309	  	
	  	 	 	  	 	 	 	 	 	 	 	 	 	 	 	
Total liabilities	  	 	59,088	  	 	59,094	  	 	 	58,409	  	 	 	57,611	  	
					
Shareholders’ equity	  			  				 				 				
Total shareholders’ equity, excl. AOCI	  	 	17,948	  	 	17,552	  	 	 	16,864	  	 	 	16,362	  	
Accumulated other comprehensive income (AOCI)	  	 	785	  	 	(991	) 	 	 	(2,146	) 	 	 	(1,916	) 	
	  	 	 	  	 	 	 	 	 	 	 	 	 	 	 	
Total shareholders’ equity	  	 	18,733	  	 	16,561	  	 	 	14,718	  	 	 	14,446	  	
	  	 	 	  	 	 	 	 	 	 	 	 	 	 	 	
Total liabilities and shareholders’ equity	  	$	77,821	  	$	75,655	  	 	$	73,127	  	 	$	72,057	  	
	  	 	 	  	 	 	 	 	 	 	 	 	 	 	 	
Book value per common share (1) 	  	$	55.71	  	$	49.27	  	 	$	43.82	  	 	$	43.30	  	
Tangible book value per common share (1) 	  	$	44.49	  	$	38.10	  	 	$	32.70	  	 	$	32.07	  	
 
(1)	See page 26 Non-GAAP Financial Measures.	

Consol Bal Sheet	  	Page 3	

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

 	  	3Q-09	  	% of Total
Consolidated	 	 	3Q-08	  	% of Total
Consolidated	 	 	% Change
3Q-09 vs.
3Q-08	 	 	YTD
2009	  	% of Total
Consolidated	 	 	YTD
2008	  	% of Total
Consolidated	 	 	% Change
YTD-09 vs.
YTD-08	 	
Net premiums written	  			  			 			  			 			 			  			 			  			 			
Property and all other	  	$	954	  	30	% 	 	$	1,048	  	32	% 	 	-9	% 	 	$	3,293	  	33	% 	 	$	3,232	  	32	% 	 	2	% 	
Casualty	  	 	1,293	  	41	% 	 	 	1,291	  	39	% 	 	0	% 	 	 	3,992	  	40	% 	 	 	4,253	  	42	% 	 	-6	% 	
	  	 	 	  	 	 	 	 	 	  	 	 	 	 	 	 	 	 	  	 	 	 	 	 	  	 	 	 	 	 	
Subtotal	  	 	2,247	  	71	% 	 	 	2,339	  	71	% 	 	-4	% 	 	 	7,285	  	73	% 	 	 	7,485	  	74	% 	 	-3	% 	
Personal accident (A&H) (1)	  	 	762	  	24	% 	 	 	815	  	25	% 	 	-7	% 	 	 	2,294	  	23	% 	 	 	2,193	  	22	% 	 	5	% 	
Life (2)	  	 	146	  	5	% 	 	 	122	  	4	% 	 	20	% 	 	 	415	  	4	% 	 	 	350	  	4	% 	 	19	% 	
	  	 	 	  	 	 	 	 	 	  	 	 	 	 	 	 	 	 	  	 	 	 	 	 	  	 	 	 	 	 	
Total Consolidated	  	$	3,155	  	100	% 	 	$	3,276	  	100	% 	 	-4	% 	 	$	9,994	  	100	% 	 	$	10,028	  	100	% 	 	0	% 	
	  	 	 	  	 	 	 	 	 	  	 	 	 	 	 	 	 	 	  	 	 	 	 	 	  	 	 	 	 	 	
Add: Life premiums on investment contracts	  	 	109	  			 	 	19	  			 	474	% 	 	 	304	  			 	 	91	  			 	234	% 	
	  	 	 	  			 	 	 	  			 	 	 	 	 	 	  			 	 	 	  			 	 	 	
Non-GAAP Total Net Premium Written	  	$	3,264	  			 	$	3,295	  			 	-1	% 	 	$	10,298	  			 	$	10,119	  			 	2	% 	
	  	 	 	  			 	 	 	  			 	 	 	 	 	 	  			 	 	 	  			 	 	 	
Net premiums earned	  			  			 			  			 			 			  			 			  			 			
Property and all other	  	$	1,081	  	32	% 	 	$	1,190	  	33	% 	 	-9	% 	 	$	3,062	  	31	% 	 	$	3,030	  	30	% 	 	1	% 	
Casualty	  	 	1,383	  	41	% 	 	 	1,463	  	41	% 	 	-5	% 	 	 	4,122	  	42	% 	 	 	4,435	  	45	% 	 	-7	% 	
	  	 	 	  	 	 	 	 	 	  	 	 	 	 	 	 	 	 	  	 	 	 	 	 	  	 	 	 	 	 	
Subtotal	  	 	2,464	  	73	% 	 	 	2,653	  	74	% 	 	-7	% 	 	 	7,184	  	73	% 	 	 	7,465	  	75	% 	 	-4	% 	
Personal accident (A&H) (1)	  	 	793	  	23	% 	 	 	845	  	23	% 	 	-6	% 	 	 	2,279	  	23	% 	 	 	2,181	  	22	% 	 	4	% 	
Life (2)	  	 	136	  	4	% 	 	 	111	  	3	% 	 	23	% 	 	 	390	  	4	% 	 	 	331	  	3	% 	 	18	% 	
	  	 	 	  	 	 	 	 	 	  	 	 	 	 	 	 	 	 	  	 	 	 	 	 	  	 	 	 	 	 	
Total Consolidated	  	$	3,393	  	100	% 	 	$	3,609	  	100	% 	 	-6	% 	 	$	9,853	  	100	% 	 	$	9,977	  	100	% 	 	-1	% 	
	  	 	 	  	 	 	 	 	 	  	 	 	 	 	 	 	 	 	  	 	 	 	 	 	  	 	 	 	 	 	
Income excluding net realized gains (losses)	  			  			 			  			 			 			  			 			  			 			
Property, casualty, and all other	  	$	564	  	80	% 	 	$	354	  	70	% 	 	59	% 	 	$	1,690	  	81	% 	 	$	1,524	  	77	% 	 	11	% 	
											
Personal accident (A&H) (1)	  	 	97	  	14	% 	 	 	117	  	23	% 	 	-17	% 	 	 	281	  	14	% 	 	 	338	  	17	% 	 	-17	% 	
Life (2)	  	 	40	  	6	% 	 	 	33	  	7	% 	 	21	% 	 	 	105	  	5	% 	 	 	105	  	6	% 	 	0	% 	
	  	 	 	  	 	 	 	 	 	  	 	 	 	 	 	 	 	 	  	 	 	 	 	 	  	 	 	 	 	 	
Total Consolidated	  	$	701	  	100	% 	 	$	504	  	100	% 	 	39	% 	 	$	2,076	  	100	% 	 	$	1,967	  	100	% 	 	6	% 	

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

Line of Business	  	Page 4	

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

 	  	3Q-09	  	Constant $
3Q-08 (3)	  	Constant $
% Change
3Q-09 vs.
3Q-08 (3)	 	 	YTD
2009	  	Constant $
YTD 08  (3)	  	Constant $
% Change
YTD-09 vs.
YTD-08  (3)	 	
Net premiums written	  			  			  			 			  			  			
Property, casualty, and all other	  	$	2,247	  	$	2,276	  	-1	% 	 	$	7,285	  	$	7,187	  	1	% 	
Personal accident (A&H) (1)	  	 	762	  	 	760	  	0	% 	 	 	2,294	  	 	1,979	  	16	% 	
Life (2)	  	 	146	  	 	121	  	21	% 	 	 	415	  	 	344	  	21	% 	
	  	 	 	  	 	 	  	 	 	 	 	 	  	 	 	  	 	 	
Total Consolidated	  	$	3,155	  	$	3,157	  	0	% 	 	$	9,994	  	$	9,510	  	5	% 	
	  	 	 	  	 	 	  	 	 	 	 	 	  	 	 	  	 	 	
Net premiums earned	  			  			  			 			  			  			
Property, casualty, and all other	  	$	2,464	  	$	2,581	  	-5	% 	 	$	7,184	  	$	7,146	  	1	% 	
Personal accident (A&H) (1)	  	 	793	  	 	791	  	0	% 	 	 	2,279	  	 	1,967	  	16	% 	
Life (2)	  	 	136	  	 	111	  	23	% 	 	 	390	  	 	326	  	20	% 	
	  	 	 	  	 	 	  	 	 	 	 	 	  	 	 	  	 	 	
Total Consolidated	  	$	3,393	  	$	3,483	  	-3	% 	 	$	9,853	  	$	9,439	  	4	% 	
	  	 	 	  	 	 	  	 	 	 	 	 	  	 	 	  	 	 	
Income excluding net realized gains (losses)	  			  			  			 			  			  			
Property, casualty, and all other	  	$	564	  	$	338	  	67	% 	 	$	1,690	  	$	1,468	  	15	% 	
Personal accident (A&H) (1)	  	 	97	  	 	107	  	-9	% 	 	 	281	  	 	300	  	-6	% 	
Life (2)	  	 	40	  	 	33	  	21	% 	 	 	105	  	 	105	  	0	% 	
	  	 	 	  	 	 	  	 	 	 	 	 	  	 	 	  	 	 	
Total Consolidated	  	$	701	  	$	478	  	47	% 	 	$	2,076	  	$	1,873	  	11	% 	

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

Line of Business 2	  	Page 5	

					
	  	ACE Limited
Consolidating Statement of Operations
Three months ended September 30, 2009 and 2008
(in millions of U.S. dollars)
(Unaudited)	 		

 	  	Insurance -
North
American	 	 	Insurance -
Overseas
General	 	 	Global
Reinsurance	 	 	Corporate
& Other	 	 	Consolidated
Excluding
Life Segment	 	 	Life	 	 	ACE
Consolidated	 	
September 30, 2009	  				 				 				 				 				 				 				
Gross premiums written	  	$	2,730	  	 	$	1,677	  	 	$	215	  	 	$	—  	  	 	$	4,622	  	 	$	383	  	 	$	5,005	  	
Net premiums written	  	 	1,374	  	 	 	1,203	  	 	 	206	  	 	 	—  	  	 	 	2,783	  	 	 	372	  	 	 	3,155	  	
Net premiums earned	  	 	1,467	  	 	 	1,317	  	 	 	247	  	 	 	—  	  	 	 	3,031	  	 	 	362	  	 	 	3,393	  	
Losses and loss expenses	  	 	1,053	  	 	 	631	  	 	 	80	  	 	 	—  	  	 	 	1,764	  	 	 	121	  	 	 	1,885	  	
Policy benefits	  	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	79	  	 	 	79	  	
Policy acquisition costs	  	 	142	  	 	 	316	  	 	 	50	  	 	 	—  	  	 	 	508	  	 	 	59	  	 	 	567	  	
Administrative expenses	  	 	146	  	 	 	204	  	 	 	15	  	 	 	35	  	 	 	400	  	 	 	51	  	 	 	451	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Underwriting income (loss)	  	 	126	  	 	 	166	  	 	 	102	  	 	 	(35	) 	 	 	359	  	 	 	52	  	 	 	411	  	
Net investment income	  	 	278	  	 	 	121	  	 	 	65	  	 	 	4	  	 	 	468	  	 	 	43	  	 	 	511	  	
Net realized gains (losses)	  	 	(25	) 	 	 	40	  	 	 	(11	) 	 	 	(15	) 	 	 	(11	) 	 	 	(212	) 	 	 	(223	) 	
Interest expense	  	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	60	  	 	 	60	  	 	 	—  	  	 	 	60	  	
Other income (expense)	  	 	(4	) 	 	 	(3	) 	 	 	1	  	 	 	(45	) 	 	 	(51	) 	 	 	—  	  	 	 	(51	) 	
Income tax expense (benefit)	  	 	47	  	 	 	56	  	 	 	9	  	 	 	(35	) 	 	 	77	  	 	 	17	  	 	 	94	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income (loss)	  	 	328	  	 	 	268	  	 	 	148	  	 	 	(116	) 	 	 	628	  	 	 	(134	) 	 	 	494	  	
Net realized gains (losses)	  	 	(25	) 	 	 	40	  	 	 	(11	) 	 	 	(15	) 	 	 	(11	) 	 	 	(212	) 	 	 	(223	) 	
Net realized gains (losses) in other income (expense)	  	 	(5	) 	 	 	1	  	 	 	—  	  	 	 	(42	) 	 	 	(46	) 	 	 	3	  	 	 	(43	) 	
Tax expense (benefit) on net realized gains (losses)	  	 	(59	) 	 	 	6	  	 	 	(1	) 	 	 	(4	) 	 	 	(58	) 	 	 	(1	) 	 	 	(59	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income (loss) excluding net realized gains (losses) (1)	  	$	299	  	 	$	233	  	 	$	158	  	 	$	(63	) 	 	$	627	  	 	$	74	  	 	$	701	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
September 30, 2008	  				 				 				 				 				 				 				
Gross premiums written	  	$	2,987	  	 	$	1,678	  	 	$	174	  	 	$	—  	  	 	$	4,839	  	 	$	381	  	 	$	5,220	  	
Net premiums written	  	 	1,461	  	 	 	1,293	  	 	 	174	  	 	 	—  	  	 	 	2,928	  	 	 	348	  	 	 	3,276	  	
Net premiums earned	  	 	1,583	  	 	 	1,425	  	 	 	257	  	 	 	—  	  	 	 	3,265	  	 	 	344	  	 	 	3,609	  	
Losses and loss expenses	  	 	1,356	  	 	 	731	  	 	 	178	  	 	 	—  	  	 	 	2,265	  	 	 	104	  	 	 	2,369	  	
Policy benefits	  	 	—  	  	 	 	5	  	 	 	—  	  	 	 	—  	  	 	 	5	  	 	 	86	  	 	 	91	  	
Policy acquisition costs	  	 	160	  	 	 	329	  	 	 	44	  	 	 	—  	  	 	 	533	  	 	 	48	  	 	 	581	  	
Administrative expenses	  	 	132	  	 	 	217	  	 	 	14	  	 	 	33	  	 	 	396	  	 	 	61	  	 	 	457	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Underwriting income (loss)	  	 	(65	) 	 	 	143	  	 	 	21	  	 	 	(33	) 	 	 	66	  	 	 	45	  	 	 	111	  	
Net investment income	  	 	278	  	 	 	136	  	 	 	83	  	 	 	(17	) 	 	 	480	  	 	 	40	  	 	 	520	  	
Net realized gains (losses)	  	 	(284	) 	 	 	(58	) 	 	 	(2	) 	 	 	14	  	 	 	(330	) 	 	 	(180	) 	 	 	(510	) 	
Interest expense	  	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	68	  	 	 	68	  	 	 	—  	  	 	 	68	  	
Other income (expense)	  	 	(3	) 	 	 	(6	) 	 	 	(1	) 	 	 	6	  	 	 	(4	) 	 	 	(2	) 	 	 	(6	) 	
Income tax expense (benefit)	  	 	(7	) 	 	 	10	  	 	 	9	  	 	 	(34	) 	 	 	(22	) 	 	 	15	  	 	 	(7	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income (loss)	  	 	(67	) 	 	 	205	  	 	 	92	  	 	 	(64	) 	 	 	166	  	 	 	(112	) 	 	 	54	  	
Net realized gains (losses)	  	 	(284	) 	 	 	(58	) 	 	 	(2	) 	 	 	14	  	 	 	(330	) 	 	 	(180	) 	 	 	(510	) 	
Net realized gains (losses) in other income (expense)	  	 	—  	  	 	 	(5	) 	 	 	—  	  	 	 	(20	) 	 	 	(25	) 	 	 	2	  	 	 	(23	) 	
Tax expense (benefit) on net realized gains (losses)	  	 	(64	) 	 	 	(16	) 	 	 	(1	) 	 	 	(2	) 	 	 	(83	) 	 	 	—  	  	 	 	(83	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income (loss) excluding net realized gains (losses) (1)	  	$	153	  	 	$	252	  	 	$	93	  	 	$	(60	) 	 	$	438	  	 	$	66	  	 	$	504	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income (loss) excluding net realized gains (losses), constant $ (2)	  	$	149	  	 	$	232	  	 	$	92	  	 	$	(60	) 	 	$	413	  	 	$	65	  	 	$	478	  	

(1)	See page 26 Non-GAAP Financial Measures.	
 
(2)	Prior year on a constant dollar basis.	

Segment 2009 Qtr	  	Page 6	

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

 	  	3Q-09	 	 	2Q-09	 	 	1Q-09	 	 	4Q-08	 	 	3Q-08	 	 	YTD
2009	 	 	YTD
2008	 	 	Full Year
2008	 	
Gross premiums written	  	$	2,730	  	 	$	2,664	  	 	$	2,078	  	 	$	2,167	  	 	$	2,987	  	 	$	7,472	  	 	$	7,886	  	 	$	10,053	  	
Net premiums written	  	 	1,374	  	 	 	1,454	  	 	 	1,392	  	 	 	1,304	  	 	 	1,461	  	 	 	4,220	  	 	 	4,332	  	 	 	5,636	  	
Net premiums earned	  	 	1,467	  	 	 	1,415	  	 	 	1,437	  	 	 	1,377	  	 	 	1,583	  	 	 	4,319	  	 	 	4,302	  	 	 	5,679	  	
Losses and loss expenses	  	 	1,053	  	 	 	997	  	 	 	1,004	  	 	 	893	  	 	 	1,356	  	 	 	3,054	  	 	 	3,187	  	 	 	4,080	  	
Policy acquisition costs	  	 	142	  	 	 	129	  	 	 	123	  	 	 	112	  	 	 	160	  	 	 	394	  	 	 	450	  	 	 	562	  	
Administrative expenses	  	 	146	  	 	 	147	  	 	 	140	  	 	 	138	  	 	 	132	  	 	 	433	  	 	 	398	  	 	 	536	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Underwriting income (loss)	  	 	126	  	 	 	142	  	 	 	170	  	 	 	234	  	 	 	(65	) 	 	 	438	  	 	 	267	  	 	 	501	  	
Net investment income	  	 	278	  	 	 	275	  	 	 	263	  	 	 	266	  	 	 	278	  	 	 	816	  	 	 	829	  	 	 	1,095	  	
Net realized gains (losses)	  	 	(25	) 	 	 	(97	) 	 	 	(120	) 	 	 	(259	) 	 	 	(284	) 	 	 	(242	) 	 	 	(450	) 	 	 	(709	) 	
Interest expense	  	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	1	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	1	  	
Other income (expense)	  	 	(4	) 	 	 	(1	) 	 	 	(4	) 	 	 	(1	) 	 	 	(3	) 	 	 	(9	) 	 	 	(6	) 	 	 	(7	) 	
Income tax expense (benefit)	  	 	47	  	 	 	76	  	 	 	96	  	 	 	93	  	 	 	(7	) 	 	 	219	  	 	 	222	  	 	 	315	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income (loss)	  	 	328	  	 	 	243	  	 	 	213	  	 	 	146	  	 	 	(67	) 	 	 	784	  	 	 	418	  	 	 	564	  	
Net realized gains (losses)	  	 	(25	) 	 	 	(97	) 	 	 	(120	) 	 	 	(259	) 	 	 	(284	) 	 	 	(242	) 	 	 	(450	) 	 	 	(709	) 	
Net realized gains (losses) in other income (expense)	  	 	(5	) 	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	(5	) 	 	 	—  	  	 	 	—  	  	
Tax expense (benefit) on net realized gains (losses)	  	 	(59	) 	 	 	(33	) 	 	 	(12	) 	 	 	(72	) 	 	 	(64	) 	 	 	(104	) 	 	 	(79	) 	 	 	(151	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income excluding net realized gains (losses) (1)	  	$	299	  	 	$	307	  	 	$	321	  	 	$	333	  	 	$	153	  	 	$	927	  	 	$	789	  	 	$	1,122	  	

Combined ratio	  				 				 				 				 				 				 				 				
Loss and loss expense ratio	  	 	71.7	% 	 	 	70.5	% 	 	 	69.9	% 	 	 	64.9	% 	 	 	85.6	% 	 	 	70.7	% 	 	 	74.1	% 	 	 	71.8	% 	
Policy acquisition cost ratio	  	 	9.7	% 	 	 	9.1	% 	 	 	8.6	% 	 	 	8.1	% 	 	 	10.1	% 	 	 	9.1	% 	 	 	10.4	% 	 	 	9.9	% 	
Administrative expense ratio	  	 	9.9	% 	 	 	10.4	% 	 	 	9.7	% 	 	 	10.0	% 	 	 	8.4	% 	 	 	10.0	% 	 	 	9.3	% 	 	 	9.4	% 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Combined ratio	  	 	91.3	% 	 	 	90.0	% 	 	 	88.2	% 	 	 	83.0	% 	 	 	104.1	% 	 	 	89.8	% 	 	 	93.8	% 	 	 	91.1	% 	

Large losses and other items (before tax)	  				 				 				 				 				 				 				 				
Reinstatement premiums (expensed) collected	  	$	—  	  	 	$	—  	  	 	$	—  	  	 	$	—  	  	 	$	(16	) 	 	$	—  	  	 	$	(16	) 	 	$	(16	) 	
Catastrophe losses	  	$	24	  	 	$	20	  	 	$	4	  	 	$	3	  	 	$	258	  	 	$	48	  	 	$	295	  	 	$	298	  	
Prior period development - unfavorable (favorable) (2)	  	$	(45	) 	 	$	(74	) 	 	$	(10	) 	 	$	(102	) 	 	$	(103	) 	 	$	(129	) 	 	$	(205	) 	 	$	(307	) 	
Loss and loss expense ratio excluding catastophe losses and prior period development	  	 	73.1	% 	 	 	74.3	% 	 	 	70.3	% 	 	 	72.0	% 	 	 	75.1	% 	 	 	72.6	% 	 	 	72.7	% 	 	 	72.6	% 	
									
% Change versus prior year period	  				 				 				 				 				 				 				 				
Net premiums written	  	 	-6	% 	 	 	-4	% 	 	 	2	% 	 	 	-5	% 	 	 	1	% 	 	 	-3	% 	 	 	-3	% 	 	 	-3	% 	
Net premiums earned	  	 	-7	% 	 	 	4	% 	 	 	6	% 	 	 	-3	% 	 	 	-1	% 	 	 	0	% 	 	 	-6	% 	 	 	-5	% 	
									
Other ratios	  				 				 				 				 				 				 				 				
Net premiums written/gross premiums written	  	 	50	% 	 	 	55	% 	 	 	67	% 	 	 	60	% 	 	 	49	% 	 	 	56	% 	 	 	55	% 	 	 	56	% 	
 
(1)	See page 26 Non-GAAP Financial Measures.	
 
(2)	For YTD 2008, prior period favorable development of $249 million less $44 million of profit share commission on Crop business settlement.	

Insurance-North American	  	Page 7	

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

 	  	3Q-09	 	 	2Q-09	 	 	1Q-09	 	 	4Q-08	 	 	3Q-08	 	 	YTD
2009	 	 	YTD
2008	 	 	Full Year
2008	 	
Gross premiums written	  	$	1,677	  	 	$	1,710	  	 	$	1,693	  	 	$	1,609	  	 	$	1,678	  	 	$	5,080	  	 	$	5,332	  	 	$	6,941	  	
Net premiums written	  	 	1,203	  	 	 	1,265	  	 	 	1,327	  	 	 	1,251	  	 	 	1,293	  	 	 	3,795	  	 	 	4,081	  	 	 	5,332	  	
Net premiums earned	  	 	1,317	  	 	 	1,246	  	 	 	1,184	  	 	 	1,250	  	 	 	1,425	  	 	 	3,747	  	 	 	4,087	  	 	 	5,337	  	
Losses and loss expenses	  	 	631	  	 	 	635	  	 	 	613	  	 	 	640	  	 	 	731	  	 	 	1,879	  	 	 	2,039	  	 	 	2,679	  	
Policy benefits	  	 	—  	  	 	 	1	  	 	 	2	  	 	 	2	  	 	 	5	  	 	 	3	  	 	 	10	  	 	 	12	  	
Policy acquisition costs	  	 	316	  	 	 	293	  	 	 	260	  	 	 	296	  	 	 	329	  	 	 	869	  	 	 	897	  	 	 	1,193	  	
Administrative expenses	  	 	204	  	 	 	190	  	 	 	175	  	 	 	195	  	 	 	217	  	 	 	569	  	 	 	598	  	 	 	793	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Underwriting income	  	 	166	  	 	 	127	  	 	 	134	  	 	 	117	  	 	 	143	  	 	 	427	  	 	 	543	  	 	 	660	  	
Net investment income	  	 	121	  	 	 	114	  	 	 	120	  	 	 	134	  	 	 	136	  	 	 	355	  	 	 	387	  	 	 	521	  	
Net realized gains (losses)	  	 	40	  	 	 	(87	) 	 	 	7	  	 	 	(117	) 	 	 	(58	) 	 	 	(40	) 	 	 	(199	) 	 	 	(316	) 	
Other income (expense)	  	 	(3	) 	 	 	(5	) 	 	 	(4	) 	 	 	(3	) 	 	 	(6	) 	 	 	(12	) 	 	 	14	  	 	 	11	  	
Income tax expense	  	 	56	  	 	 	29	  	 	 	46	  	 	 	5	  	 	 	10	  	 	 	131	  	 	 	95	  	 	 	100	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income	  	 	268	  	 	 	120	  	 	 	211	  	 	 	126	  	 	 	205	  	 	 	599	  	 	 	650	  	 	 	776	  	
Net realized gains (losses)	  	 	40	  	 	 	(87	) 	 	 	7	  	 	 	(117	) 	 	 	(58	) 	 	 	(40	) 	 	 	(199	) 	 	 	(316	) 	
Net realized gains (losses) in other income (expense)	  	 	1	  	 	 	2	  	 	 	3	  	 	 	1	  	 	 	(5	) 	 	 	6	  	 	 	17	  	 	 	18	  	
Tax expense (benefit) on net realized gains (losses)	  	 	6	  	 	 	(15	) 	 	 	8	  	 	 	(17	) 	 	 	(16	) 	 	 	(1	) 	 	 	(45	) 	 	 	(62	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income excluding net realized gains (losses) (1)	  	$	233	  	 	$	190	  	 	$	209	  	 	$	225	  	 	$	252	  	 	$	632	  	 	$	787	  	 	$	1,012	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Combined ratio	  				 				 				 				 				 				 				 				
Loss and loss expense ratio	  	 	48.0	% 	 	 	51.0	% 	 	 	52.0	% 	 	 	51.5	% 	 	 	51.6	% 	 	 	50.2	% 	 	 	50.1	% 	 	 	50.4	% 	
Policy acquisition cost ratio	  	 	24.0	% 	 	 	23.6	% 	 	 	21.9	% 	 	 	23.7	% 	 	 	23.1	% 	 	 	23.2	% 	 	 	22.0	% 	 	 	22.4	% 	
Administrative expense ratio	  	 	15.4	% 	 	 	15.2	% 	 	 	14.8	% 	 	 	15.5	% 	 	 	15.2	% 	 	 	15.2	% 	 	 	14.6	% 	 	 	14.8	% 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Combined ratio	  	 	87.4	% 	 	 	89.8	% 	 	 	88.7	% 	 	 	90.7	% 	 	 	89.9	% 	 	 	88.6	% 	 	 	86.7	% 	 	 	87.6	% 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Large losses and other items (before tax)	  				 				 				 				 				 				 				 				
Reinstatement premiums (expensed) collected	  	$	(1	) 	 	$	—  	  	 	$	—  	  	 	$	(4	) 	 	$	(3	) 	 	$	(1	) 	 	$	(3	) 	 	$	(7	) 	
Catastrophe losses	  	$	16	  	 	$	10	  	 	$	15	  	 	$	(6	) 	 	$	49	  	 	$	41	  	 	$	89	  	 	$	83	  	
Prior period development - unfavorable (favorable)	  	$	(119	) 	 	$	(26	) 	 	$	(24	) 	 	$	(85	) 	 	$	(121	) 	 	$	(169	) 	 	$	(219	) 	 	$	(304	) 	
Loss and loss expense ratio excluding catastophe losses and prior period development	  	 	55.7	% 	 	 	52.3	% 	 	 	52.7	% 	 	 	58.6	% 	 	 	56.7	% 	 	 	53.6	% 	 	 	53.3	% 	 	 	54.5	% 	
									
% Change versus prior year period	  				 				 				 				 				 				 				 				
Net premiums written as reported	  	 	-7	% 	 	 	-12	% 	 	 	-1	% 	 	 	7	% 	 	 	24	% 	 	 	-7	% 	 	 	20	% 	 	 	17	% 	
Net premiums earned as reported	  	 	-8	% 	 	 	-13	% 	 	 	-3	% 	 	 	2	% 	 	 	25	% 	 	 	-8	% 	 	 	20	% 	 	 	15	% 	
Net premiums written constant $	  	 	2	% 	 	 	2	% 	 	 	10	% 	 	 	18	% 	 	 	18	% 	 	 	4	% 	 	 	13	% 	 	 	14	% 	
Net premiums earned constant $	  	 	0	% 	 	 	1	% 	 	 	10	% 	 	 	12	% 	 	 	19	% 	 	 	3	% 	 	 	13	% 	 	 	13	% 	
Underwriting income constant $	  				 				 				 				 	$	130	  	 				 	$	489	  	 				
Income excluding net realized gains (losses), constant $	  				 				 				 				 	$	232	  	 				 	$	713	  	 				
									
Other ratios	  				 				 				 				 				 				 				 				
Net premiums written/gross premiums written	  	 	72	% 	 	 	74	% 	 	 	78	% 	 	 	78	% 	 	 	77	% 	 	 	75	% 	 	 	77	% 	 	 	77	% 	
 
(1)	See page 26 Non-GAAP Financial Measures.	

Insurance-Overseas General	  	Page 8	

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

 	  	3Q-09	 	 	2Q-09	 	 	1Q-09	 	 	4Q-08	 	 	3Q-08	 	 	YTD
2009	 	 	YTD
2008	 	 	Full Year
2008	 	
Gross premiums written	  	$	215	  	 	$	359	  	 	$	379	  	 	$	130	  	 	$	174	  	 	$	953	  	 	$	791	  	 	$	921	  	
Net premiums written	  	 	206	  	 	 	329	  	 	 	359	  	 	 	126	  	 	 	174	  	 	 	894	  	 	 	788	  	 	 	914	  	
Net premiums earned	  	 	247	  	 	 	241	  	 	 	238	  	 	 	240	  	 	 	257	  	 	 	726	  	 	 	777	  	 	 	1,017	  	
Losses and loss expenses	  	 	80	  	 	 	56	  	 	 	87	  	 	 	121	  	 	 	178	  	 	 	223	  	 	 	403	  	 	 	524	  	
Policy acquisition costs	  	 	50	  	 	 	46	  	 	 	51	  	 	 	40	  	 	 	44	  	 	 	147	  	 	 	152	  	 	 	192	  	
Administrative expenses	  	 	15	  	 	 	14	  	 	 	12	  	 	 	13	  	 	 	14	  	 	 	41	  	 	 	43	  	 	 	56	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Underwriting income	  	 	102	  	 	 	125	  	 	 	88	  	 	 	66	  	 	 	21	  	 	 	315	  	 	 	179	  	 	 	245	  	
Net investment income	  	 	65	  	 	 	73	  	 	 	72	  	 	 	74	  	 	 	83	  	 	 	210	  	 	 	235	  	 	 	309	  	
Net realized gains (losses)	  	 	(11	) 	 	 	(47	) 	 	 	11	  	 	 	(96	) 	 	 	(2	) 	 	 	(47	) 	 	 	(67	) 	 	 	(163	) 	
Other income (expense)	  	 	1	  	 	 	(1	) 	 	 	—  	  	 	 	—  	  	 	 	(1	) 	 	 	—  	  	 	 	(2	) 	 	 	(2	) 	
Income tax expense	  	 	9	  	 	 	13	  	 	 	16	  	 	 	6	  	 	 	9	  	 	 	38	  	 	 	24	  	 	 	30	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income	  	 	148	  	 	 	137	  	 	 	155	  	 	 	38	  	 	 	92	  	 	 	440	  	 	 	321	  	 	 	359	  	
Net realized gains (losses)	  	 	(11	) 	 	 	(47	) 	 	 	11	  	 	 	(96	) 	 	 	(2	) 	 	 	(47	) 	 	 	(67	) 	 	 	(163	) 	
Tax expense (benefit) on net realized gains (losses)	  	 	(1	) 	 	 	1	  	 	 	—  	  	 	 	(1	) 	 	 	(1	) 	 	 	—  	  	 	 	(3	) 	 	 	(4	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income excluding net realized gains (losses)  (1)	  	$	158	  	 	$	185	  	 	$	144	  	 	$	133	  	 	$	93	  	 	$	487	  	 	$	385	  	 	$	518	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Combined ratio	  				 				 				 				 				 				 				 				
Loss and loss expense ratio	  	 	32.5	% 	 	 	23.4	% 	 	 	36.3	% 	 	 	50.3	% 	 	 	69.2	% 	 	 	30.7	% 	 	 	51.9	% 	 	 	51.5	% 	
Policy acquisition cost ratio	  	 	20.1	% 	 	 	19.0	% 	 	 	21.5	% 	 	 	16.6	% 	 	 	16.9	% 	 	 	20.2	% 	 	 	19.5	% 	 	 	18.8	% 	
Administrative expense ratio	  	 	5.9	% 	 	 	5.8	% 	 	 	5.2	% 	 	 	5.4	% 	 	 	5.4	% 	 	 	5.6	% 	 	 	5.5	% 	 	 	5.5	% 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Combined ratio	  	 	58.5	% 	 	 	48.2	% 	 	 	63.0	% 	 	 	72.3	% 	 	 	91.5	% 	 	 	56.5	% 	 	 	76.9	% 	 	 	75.8	% 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Large losses and other items (before tax)	  				 				 				 				 				 				 				 				
Reinstatement premiums (expensed) collected	  	$	1	  	 	$	—  	  	 	$	1	  	 	$	8	  	 	$	12	  	 	$	2	  	 	$	12	  	 	$	20	  	
Catastrophe losses	  	$	5	  	 	$	1	  	 	$	19	  	 	$	70	  	 	$	104	  	 	$	25	  	 	$	116	  	 	$	186	  	
Prior period development - unfavorable (favorable)	  	$	(39	) 	 	$	(58	) 	 	$	(34	) 	 	$	(65	) 	 	$	(53	) 	 	$	(131	) 	 	$	(94	) 	 	$	(159	) 	
Loss and loss expense ratio excluding catastophe losses and prior period development	  	 	46.4	% 	 	 	46.9	% 	 	 	42.8	% 	 	 	50.4	% 	 	 	51.7	% 	 	 	45.4	% 	 	 	49.7	% 	 	 	49.9	% 	
									
% Change versus prior year period	  				 				 				 				 				 				 				 				
Net premiums written	  	 	18	% 	 	 	22	% 	 	 	4	% 	 	 	-28	% 	 	 	-19	% 	 	 	13	% 	 	 	-23	% 	 	 	-24	% 	
Net premiums earned	  	 	-4	% 	 	 	-6	% 	 	 	-10	% 	 	 	-23	% 	 	 	-19	% 	 	 	-7	% 	 	 	-21	% 	 	 	-22	% 	
									
Other ratios	  				 				 				 				 				 				 				 				
Net premiums written/gross premiums written	  	 	96	% 	 	 	92	% 	 	 	95	% 	 	 	97	% 	 	 	100	% 	 	 	94	% 	 	 	100	% 	 	 	99	% 	
 
(1)	See page 26 Non-GAAP Financial Measures.	

Global Reinsurance	  	Page 9	

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

 	  	3Q-09	 	 	2Q-09	 	 	1Q-09	 	 	4Q-08	 	 	3Q-08	 	 	YTD
2009	 	 	YTD
2008	 	 	Full Year
2008	 	
Gross premiums written (1)	  	$	383	  	 	$	384	  	 	$	385	  	 	$	414	  	 	$	381	  	 	$	1,152	  	 	$	913	  	 	$	1,327	  	
Net premiums written	  	 	372	  	 	 	367	  	 	 	346	  	 	 	371	  	 	 	348	  	 	 	1,085	  	 	 	827	  	 	 	1,198	  	
Net premiums earned	  	 	362	  	 	 	364	  	 	 	335	  	 	 	359	  	 	 	344	  	 	 	1,061	  	 	 	811	  	 	 	1,170	  	
Losses and loss expenses	  	 	121	  	 	 	133	  	 	 	112	  	 	 	106	  	 	 	104	  	 	 	366	  	 	 	214	  	 	 	320	  	
Policy benefits	  	 	79	  	 	 	77	  	 	 	97	  	 	 	154	  	 	 	86	  	 	 	253	  	 	 	233	  	 	 	387	  	
Policy acquisition costs	  	 	59	  	 	 	55	  	 	 	47	  	 	 	69	  	 	 	48	  	 	 	161	  	 	 	119	  	 	 	188	  	
Administrative expenses	  	 	51	  	 	 	64	  	 	 	58	  	 	 	56	  	 	 	61	  	 	 	173	  	 	 	143	  	 	 	199	  	
Net investment income	  	 	43	  	 	 	43	  	 	 	46	  	 	 	47	  	 	 	40	  	 	 	132	  	 	 	95	  	 	 	142	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Life underwriting income (2)	  	 	95	  	 	 	78	  	 	 	67	  	 	 	21	  	 	 	85	  	 	 	240	  	 	 	197	  	 	 	218	  	
									
Net realized gains (losses)	  	 	(212	) 	 	 	108	  	 	 	9	  	 	 	(230	) 	 	 	(180	) 	 	 	(95	) 	 	 	(302	) 	 	 	(532	) 	
Other income (expense)	  	 	—  	  	 	 	1	  	 	 	(2	) 	 	 	(6	) 	 	 	(2	) 	 	 	(1	) 	 	 	(6	) 	 	 	(12	) 	
Income tax expense	  	 	17	  	 	 	14	  	 	 	6	  	 	 	5	  	 	 	15	  	 	 	37	  	 	 	25	  	 	 	30	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income (loss)	  	 	(134	) 	 	 	173	  	 	 	68	  	 	 	(220	) 	 	 	(112	) 	 	 	107	  	 	 	(136	) 	 	 	(356	) 	
									
Net realized gains (losses)	  	 	(212	) 	 	 	108	  	 	 	9	  	 	 	(230	) 	 	 	(180	) 	 	 	(95	) 	 	 	(302	) 	 	 	(532	) 	
Net realized gains (losses) in other income (expense)	  	 	3	  	 	 	1	  	 	 	3	  	 	 	—  	  	 	 	2	  	 	 	7	  	 	 	2	  	 	 	2	  	
Tax expense (benefit) on net realized gains (losses)	  	 	(1	) 	 	 	2	  	 	 	(3	) 	 	 	(6	) 	 	 	—  	  	 	 	(2	) 	 	 	—  	  	 	 	(6	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income excluding net realized gains (losses) (3)	  	$	74	  	 	$	66	  	 	$	53	  	 	$	4	  	 	$	66	  	 	$	193	  	 	$	164	  	 	$	168	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Prior period development - unfavorable (favorable)	  	$	—  	  	 	$	—  	  	 	$	1	  	 	$	—  	  	 	$	—  	  	 	$	1	  	 	$	—  	  	 	$	—  	  	
% Change versus prior year period	  				 				 				 				 				 				 				 				
Net premiums written	  	 	7	% 	 	 	-2	% 	 	 	230	% (4)  	 	 	234	% (4)  	 	 	266	% (4)  	 	 	31	% 	 	 	206	% (4)  	 	 	214	% (4)  	
Net premiums earned	  	 	5	% 	 	 	-1	% 	 	 	235	% (4)  	 	 	266	% (4)  	 	 	262	% (4)  	 	 	31	% 	 	 	200	% (4)  	 	 	218	% (4)  	
 
(1)	Consistent with GAAP, premiums collected on universal life and investment contracts are considered deposits and excluded from revenues. For the quarters ended September 30, 2009, June 30, 2009, March 31, 2009, December 31, 2008, and September 30, 2008, premiums or deposits collected on investment and universal life contracts that are excluded from premium revenue above are $108.8 million, $100.1 million, $95.5 million, $29.2 million, and $18.8 million, respectively. Fees on universal life and investment contracts are revenue for GAAP and have been classified as premium. For the quarters ended September 30, 2009, June 30, 2009, March 31, 2009, December 31, 2008, and September 30, 2008, fees reflected as gross premiums written are $8.4 million, $7.7 million, $7.1 million, $5.6 million, and $4.5 million, respectively.	
 
(2)	We assess the performance of our Life business based on life underwriting income which includes net investment income.	
 
(3)	See page 26 Non-GAAP Financial Measures.	
 
(4)	% Change is primarily due to the Combined Insurance acquisition on April 1, 2008.	

Life	  	Page 10	

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

 	  	3Q-09	 	 	2Q-09	 	 	1Q-09	 	 	4Q-08	 	 	3Q-08	  	YTD
2009	 	 	YTD
2008	  	Full Year
2008	
Premium	  	$	28	  	 	$	26	  	 	$	25	  	 	$	27	  	 	$	31	  	$	79	  	 	$	95	  	$	122	
Less paid claims	  	 	34	  	 	 	37	  	 	 	45	  	 	 	35	  	 	 	16	  	 	116	  	 	 	32	  	 	67	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	  	 	 	 	 	 	 	  	 	 	
Net	  	$	(6	) 	 	$	(11	) 	 	$	(20	) 	 	$	(8	) 	 	$	15	  	$	(37	) 	 	$	63	  	$	55	

Living Benefits (Includes GMIB and GMAB)	  				 				 				 				 			  				 			  			
									
 	  	3Q-09	 	 	2Q-09	 	 	1Q-09	 	 	4Q-08	 	 	3Q-08	  	YTD
2009	 	 	YTD
2008	  	Full Year
2008	
Premium	  	$	40	  	 	$	41	  	 	$	40	  	 	$	40	  	 	$	39	  	$	121	  	 	$	109	  	$	149	
Less paid claims	  	 	—  	  	 	 	—  	  	 	 	1	  	 	 	1	  	 	 	—  	  	 	1	  	 	 	—  	  	 	—  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	  	 	 	 	 	 	 	  	 	 	
Net	  	$	40	  	 	$	41	  	 	$	39	  	 	$	39	  	 	$	39	  	$	120	  	 	$	109	  	$	149	

Total VA Guaranteed Benefits	  				 				 				 				 			  				 			  			
									
 	  	3Q-09	 	 	2Q-09	 	 	1Q-09	 	 	4Q-08	 	 	3Q-08	  	YTD
2009	 	 	YTD
2008	  	Full Year
2008	
Premium	  	$	68	  	 	$	67	  	 	$	65	  	 	$	67	  	 	$	70	  	$	200	  	 	$	204	  	$	271	
Less paid claims	  	 	34	  	 	 	37	  	 	 	46	  	 	 	36	  	 	 	16	  	 	117	  	 	 	32	  	 	67	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	  	 	 	 	 	 	 	  	 	 	
Net	  	$	34	  	 	$	30	  	 	$	19	  	 	$	31	  	 	$	54	  	$	83	  	 	$	172	  	$	204	

Amounts represent accrued past premium received and claims paid by quarter, split by benefit type.
 
Death Benefits (GMDB)
 
Premiums and claims from VA contracts reinsuring Guaranteed Minimum Death Benefits (GMDB).
 
At current market levels we expect approximately $135 million of claims and $103 million of premium on death benefits over the next 12 months.
 
Living Benefits (Includes GMIB and GMAB)
 
Premiums and claims from VA contracts reinsuring Guaranteed Minimum Income Benefits (GMIB) and Guaranteed Minimum Accumulation Benefits (GMAB), collectively known as Living Benefits.
 
At current market levels we expect approximately $1 million of claims and $152 million of premium on living benefits over the next 12 months.

Variable Annuity	  	Page 11	

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

 	  	Total	 	
 	  	Unpaid Losses	 	
 	  	Gross	 	 	Ceded	 	 	Net	 	
Balance at December 31, 2007	  	$	37,112	  	 	$	13,520	  	 	$	23,592	  	
				
Losses and loss expenses incurred	  	 	1,659	  	 	 	80	  	 	 	1,579	  	
Losses and loss expenses paid	  	 	(1,748	) 	 	 	(601	) 	 	 	(1,147	) 	
Other (incl. foreign exch. revaluation)	  	 	159	  	 	 	71	  	 	 	88	  	
	  	 	 	 	 	 	 	 	 	 	 	 	
Balance at March 31, 2008	  	$	37,182	  	 	$	13,070	  	 	$	24,112	  	
				
Losses and loss expenses incurred	  	 	2,736	  	 	 	841	  	 	 	1,895	  	
Losses and loss expenses paid	  	 	(2,620	) 	 	 	(1,024	) 	 	 	(1,596	) 	
Other (incl. foreign exch. revaluation)	  	 	12	  	 	 	12	  	 	 	—  	  	
Losses and loss expenses acquired (1)	  	 	386	  	 	 	33	  	 	 	353	  	
	  	 	 	 	 	 	 	 	 	 	 	 	
Balance at June 30, 2008	  	$	37,696	  	 	$	12,932	  	 	$	24,764	  	
				
Losses and loss expenses incurred	  	 	3,995	  	 	 	1,626	  	 	 	2,369	  	
Losses and loss expenses paid	  	 	(2,767	) 	 	 	(1,025	) 	 	 	(1,742	) 	
Other (incl. foreign exch. revaluation)	  	 	(551	) 	 	 	(200	) 	 	 	(351	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	
Balance at September 30, 2008	  	$	38,373	  	 	$	13,333	  	 	$	25,040	  	
				
Losses and loss expenses incurred	  	 	2,554	  	 	 	794	  	 	 	1,760	  	
Losses and loss expenses paid	  	 	(2,764	) 	 	 	(922	) 	 	 	(1,842	) 	
Other (incl. foreign exch. revaluation)	  	 	(987	) 	 	 	(270	) 	 	 	(717	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	
Balance at December 31, 2008	  	$	37,176	  	 	$	12,935	  	 	$	24,241	  	
				
Losses and loss expenses incurred	  	 	2,454	  	 	 	638	  	 	 	1,816	  	
Losses and loss expenses paid	  	 	(2,504	) 	 	 	(762	) 	 	 	(1,742	) 	
Other (incl. foreign exch. revaluation)	  	 	(195	) 	 	 	(57	) 	 	 	(138	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	
Balance at March 31, 2009	  	$	36,931	  	 	$	12,754	  	 	$	24,177	  	
				
Losses and loss expenses incurred	  	 	2,633	  	 	 	812	  	 	 	1,821	  	
Losses and loss expenses paid	  	 	(2,868	) 	 	 	(1,154	) 	 	 	(1,714	) 	
Other (incl. foreign exch. revaluation)	  	 	572	  	 	 	144	  	 	 	428	  	
	  	 	 	 	 	 	 	 	 	 	 	 	
Balance at June 30, 2009	  	$	37,268	  	 	$	12,556	  	 	$	24,712	  	
				
Losses and loss expenses incurred	  	 	3,268	  	 	 	1,383	  	 	 	1,885	  	
Losses and loss expenses paid	  	 	(2,972	) 	 	 	(1,235	) 	 	 	(1,737	) 	
Other (incl. foreign exch. revaluation)	  	 	307	  	 	 	96	  	 	 	211	  	
	  	 	 	 	 	 	 	 	 	 	 	 	
Balance at September 30, 2009	  	$	37,871	  	 	$	12,800	  	 	$	25,071	  	

Add net recoverable on paid losses	  	 	—  	  	 	 	889	  	 	 	(889	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	
Balance including net recoverable on paid losses	  	$	37,871	  	 	$	13,689	  	 	$	24,182	  	

(1)	Combined Insurance.	

Loss Reserve Rollforward	  	Page 12	

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

 	  	September 30
2009	 	 	June 30
2009	 	 	March 31
2009	 	 	December 31
2008	 	
Reinsurance recoverable on paid losses and loss expenses	  				 				 				 				
Active operations	  	$	624	  	 	$	655	  	 	$	725	  	 	$	745	  	
Brandywine	  	 	350	  	 	 	297	  	 	 	313	  	 	 	331	  	
Westchester Run-off	  	 	35	  	 	 	33	  	 	 	38	  	 	 	34	  	
Other Run-off	  	 	13	  	 	 	12	  	 	 	13	  	 	 	12	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total	  	$	1,022	  	 	$	997	  	 	$	1,089	  	 	$	1,122	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Reinsurance recoverable on unpaid losses and loss expenses	  				 				 				 				
Active operations	  	$	10,430	  	 	$	9,996	  	 	$	10,006	  	 	$	10,124	  	
Brandywine	  	 	2,246	  	 	 	2,394	  	 	 	2,566	  	 	 	2,608	  	
Westchester Run-off	  	 	528	  	 	 	533	  	 	 	539	  	 	 	550	  	
Other Run-off	  	 	48	  	 	 	86	  	 	 	100	  	 	 	104	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total	  	$	13,252	  	 	$	13,009	  	 	$	13,211	  	 	$	13,386	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Gross reinsurance recoverable	  				 				 				 				
Active operations	  	$	11,054	  	 	$	10,651	  	 	$	10,731	  	 	$	10,869	  	
Brandywine	  	 	2,596	  	 	 	2,691	  	 	 	2,879	  	 	 	2,939	  	
Westchester Run-off	  	 	563	  	 	 	566	  	 	 	577	  	 	 	584	  	
Other Run-off	  	 	61	  	 	 	98	  	 	 	113	  	 	 	116	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total	  	$	14,274	  	 	$	14,006	  	 	$	14,300	  	 	$	14,508	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Provision for uncollectible reinsurance	  				 				 				 				
Active operations	  	$	(398	) 	 	$	(387	) 	 	$	(379	) 	 	$	(398	) 	
Brandywine	  	 	(154	) 	 	 	(151	) 	 	 	(168	) 	 	 	(155	) 	
Westchester Run-off	  	 	(27	) 	 	 	(27	) 	 	 	(27	) 	 	 	(27	) 	
Other Run-off	  	 	(6	) 	 	 	(11	) 	 	 	(13	) 	 	 	(11	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total	  	$	(585	) 	 	$	(576	) 	 	$	(587	) 	 	$	(591	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net reinsurance recoverable	  				 				 				 				
Active operations	  	$	10,656	  	 	$	10,264	  	 	$	10,352	  	 	$	10,471	  	
Brandywine	  	 	2,442	  	 	 	2,540	  	 	 	2,711	  	 	 	2,784	  	
Westchester Run-off	  	 	536	  	 	 	539	  	 	 	550	  	 	 	557	  	
Other Run-off	  	 	55	  	 	 	87	  	 	 	100	  	 	 	105	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total	  	$	13,689	  	 	$	13,430	  	 	$	13,713	  	 	$	13,917	  	

			
Reinsurance Recoverable	  	Page 13	

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

 	  	September 30
2009	 	 	June 30
2009	 	 	March 31
2009	 	 	December 31
2008	 	
Market Value	  				 			 				 			 				 			 				 			
Fixed maturities available for sale	  	$	38,559	  	 			 	$	35,697	  	 			 	$	31,355	  	 			 	$	31,155	  	 			
Fixed maturities held to maturity	  	 	3,532	  	 			 	 	3,535	  	 			 	 	2,827	  	 			 	 	2,865	  	 			
Short-term investments	  	 	1,853	  	 			 	 	2,081	  	 			 	 	3,909	  	 			 	 	3,350	  	 			
	  	 	 	 	 			 	 	 	 	 			 	 	 	 	 			 	 	 	 	 			
Total	  	$	43,944	  	 			 	$	41,313	  	 			 	$	38,091	  	 			 	$	37,370	  	 			
	  	 	 	 	 			 	 	 	 	 			 	 	 	 	 			 	 	 	 	 			
Asset Allocation by Market Value	  				 			 				 			 				 			 				 			
Treasury	  	$	1,859	  	 	4	% 	 	$	1,652	  	 	4	% 	 	$	1,224	  	 	3	% 	 	$	1,018	  	 	3	% 	
Agency	  	 	2,557	  	 	6	% 	 	 	2,420	  	 	6	% 	 	 	2,157	  	 	6	% 	 	 	2,027	  	 	5	% 	
Corporate	  	 	12,875	  	 	29	% 	 	 	11,522	  	 	28	% 	 	 	8,974	  	 	24	% 	 	 	8,744	  	 	23	% 	
Mortgage-backed securities	  	 	11,207	  	 	26	% 	 	 	11,100	  	 	27	% 	 	 	10,796	  	 	28	% 	 	 	10,986	  	 	29	% 	
Asset-backed securities	  	 	436	  	 	1	% 	 	 	534	  	 	1	% 	 	 	611	  	 	2	% 	 	 	709	  	 	2	% 	
Municipal	  	 	2,427	  	 	6	% 	 	 	2,225	  	 	5	% 	 	 	2,101	  	 	5	% 	 	 	2,124	  	 	6	% 	
Non-U.S.	  	 	10,730	  	 	24	% 	 	 	9,779	  	 	24	% 	 	 	8,319	  	 	22	% 	 	 	8,412	  	 	23	% 	
Short-term investments	  	 	1,853	  	 	4	% 	 	 	2,081	  	 	5	% 	 	 	3,909	  	 	10	% 	 	 	3,350	  	 	9	% 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total	  	$	43,944	  	 	100	% 	 	$	41,313	  	 	100	% 	 	$	38,091	  	 	100	% 	 	$	37,370	  	 	100	% 	

Note: Insured municipal bonds represent $942 million, or 39% of our municipal bond holdings.	  	
									
Credit Quality by Market Value	  				 			 				 			 				 			 				 			
AAA	  	$	22,707	  	 	52	% 	 	$	22,611	  	 	55	% 	 	$	22,875	  	 	60	% 	 	$	22,960	  	 	61	% 	
AA	  	 	3,851	  	 	9	% 	 	 	3,870	  	 	9	% 	 	 	3,605	  	 	10	% 	 	 	3,374	  	 	9	% 	
A	  	 	7,378	  	 	17	% 	 	 	6,328	  	 	15	% 	 	 	5,497	  	 	14	% 	 	 	5,497	  	 	15	% 	
BBB	  	 	4,779	  	 	11	% 	 	 	4,383	  	 	11	% 	 	 	3,560	  	 	9	% 	 	 	3,388	  	 	9	% 	
BB	  	 	2,677	  	 	6	% 	 	 	2,334	  	 	6	% 	 	 	1,384	  	 	4	% 	 	 	1,119	  	 	3	% 	
B	  	 	1,964	  	 	4	% 	 	 	1,601	  	 	4	% 	 	 	1,040	  	 	3	% 	 	 	934	  	 	3	% 	
Other	  	 	588	  	 	1	% 	 	 	186	  	 	0	% 	 	 	130	  	 	0	% 	 	 	98	  	 	0	% 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total	  	$	43,944	  	 	100	% 	 	$	41,313	  	 	100	% 	 	$	38,091	  	 	100	% 	 	$	37,370	  	 	100	% 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Cost/Amortized Cost	  				 			 				 			 				 			 				 			
Fixed maturities available for sale	  	$	38,004	  	 			 	$	36,810	  	 			 	$	33,503	  	 			 	$	33,109	  	 			
Fixed maturities held to maturity	  	 	3,439	  	 			 	 	3,517	  	 			 	 	2,824	  	 			 	 	2,860	  	 			
Short-term investments	  	 	1,852	  	 			 	 	2,081	  	 			 	 	3,909	  	 			 	 	3,350	  	 			
	  	 	 	 	 			 	 	 	 	 			 	 	 	 	 			 	 	 	 	 			
Subtotal	  	 	43,295	  	 			 	 	42,408	  	 			 	 	40,236	  	 			 	 	39,319	  	 			
Equity securities	  	 	492	  	 			 	 	546	  	 			 	 	1,026	  	 			 	 	1,132	  	 			
Other investments	  	 	1,279	  	 			 	 	1,320	  	 			 	 	1,325	  	 			 	 	1,368	  	 			
	  	 	 	 	 			 	 	 	 	 			 	 	 	 	 			 	 	 	 	 			
Total	  	$	45,066	  	 			 	$	44,274	  	 			 	$	42,587	  	 			 	$	41,819	  	 			
	  	 	 	 	 			 	 	 	 	 			 	 	 	 	 			 	 	 	 	 			
Avg. duration of fixed maturities	  	 	3.6 years	  	 			 	 	3.8 years	  	 			 	 	3.6 years	  	 			 	 	3.6 years	  	 			
Avg. market yield of fixed maturities (1)	  	 	4.3	% 	 			 	 	5.6	% 	 			 	 	6.3	% 	 			 	 	6.4	% 	 			
Avg. credit quality	  	 	AA	  	 			 	 	AA	  	 			 	 	AA	  	 			 	 	AA	  	 			
Avg. yield on invested assets (2)	  	 	4.7	% 	 			 	 	4.7	% 	 			 	 	4.8	% 	 			 	 	5.0	% 	 			
 
(1)	Weighted average yield to maturity of our fixed income portfolio based on the market prices of the holdings as of that date.	
 
(2)	Net investment income divided by average cost of fixed maturities and other investments, and average market value of equity securities.	

Investments	  	Page 14	

					
	 	ACE Limited
Investment Portfolio - 2
(in millions of U.S. dollars)
(Unaudited)	 		
 
Mortgage-backed and Asset-backed Fixed Income Portfolio
Market Value at September 30, 2009

 	  	S&P Credit Rating	
 	  	AAA	  	AA	  	A	  	BBB	  	BB and below	  	Total	
Mortgage-backed securities	  			  			  			  			  			  			
Residential mortgage-backed (RMBS)	  			  			  			  			  			  			
GNMA	  	$	512	  	$	—  	  	$	—  	  	$	—  	  	$	—  	  	$	512	
FNMA	  	 	5,069	  	 	—  	  	 	—  	  	 	—  	  	 	—  	  	 	5,069	
Freddie Mac	  	 	1,979	  	 	—  	  	 	—  	  	 	—  	  	 	—  	  	 	1,979	
	  	 	 	  	 	 	  	 	 	  	 	 	  	 	 	  	 	 	
Total agency RMBS	  	 	7,560	  	 	—  	  	 	—  	  	 	—  	  	 	—  	  	 	7,560	
Non-agency RMBS	  	 	643	  	 	37	  	 	46	  	 	78	  	 	757	  	 	1,561	
	  	 	 	  	 	 	  	 	 	  	 	 	  	 	 	  	 	 	
Total residential mortgage-backed	  	 	8,203	  	 	37	  	 	46	  	 	78	  	 	757	  	 	9,121	
							
Commercial mortgage-backed	  	 	1,899	  	 	11	  	 	170	  	 	6	  	 	—  	  	 	2,086	
	  	 	 	  	 	 	  	 	 	  	 	 	  	 	 	  	 	 	
Total mortgage-backed securities	  	$	10,102	  	$	48	  	$	216	  	$	84	  	$	757	  	$	11,207	
	  	 	 	  	 	 	  	 	 	  	 	 	  	 	 	  	 	 	
Asset-backed securities	  			  			  			  			  			  			
Sub-prime	  	$	22	  	$	4	  	$	3	  	$	1	  	$	25	  	$	55	
Credit cards	  	 	30	  	 	8	  	 	—  	  	 	6	  	 	—  	  	 	44	
Autos	  	 	167	  	 	19	  	 	18	  	 	2	  	 	2	  	 	208	
Other	  	 	125	  	 	1	  	 	—  	  	 	2	  	 	1	  	 	129	
	  	 	 	  	 	 	  	 	 	  	 	 	  	 	 	  	 	 	
Total asset-backed securities	  	$	344	  	$	32	  	$	21	  	$	11	  	$	28	  	$	436	

Insured asset-backed securities represent $52 million, or 12% of our asset-backed security holdings.

Investments 2	  	Page 15	

					
	 	ACE Limited
Investment Portfolio - 3
(in millions of U.S. dollars)
(Unaudited)	 		
 
Mortgage-backed and Asset-backed Fixed Income Portfolio
Market Value at September 30, 2009
 
Mortgage-backed securities total $11.2 billion, are rated predominantly AAA and comprise 26% of the fixed income portfolio. This compares to a 41% mortgage-backed weighting in representative indices of the U.S. fixed income market. The minimum rating for initial purchases of mortgage and asset backed securities is AAA.
 
ACE suspended new investments in sub-prime backed securities in 3Q 2007 and ALT-A, credit card, and auto backed securities in 1Q 2008 and suspended new investments in CMBS in Q1 2009.
 
Securities issued by Federal agencies with implied or explicit government guarantees total $7.6 billion and represent 83% of the residential mortgage-backed portfolio.
 
Non-agency residential mortgage-backed securities are backed by prime collateral, and broadly diversified in over 280,000 loans. The portfolio’s loan-to-value ratio is approximately 70% with an average FICO score of 732. With this conservative loan-to-value ratio and subordinated collateral of 13%, the cumulative 5-year foreclosure rate would have to rise to 20% and real estate values would have to fall 30% from their current levels before principal is impaired. The comparable historical cumulative foreclosure rate is 8% for prime mortgages.
 
Within the portfolio of prime non-agency RMBS are $157 million of holdings classified as ALT-A. These ALT-A holdings are broadly diversified with over 60% issued prior to 2006. The average FICO score is 714 with a relatively conservative loan-to-value ratio of 72%. With subordinated collateral of 21%, the cumulative 5-year foreclosure rate would have to rise to 32% and real estate values would have to fall more than 27% from their current levels before principal is impaired. The comparable cumulative foreclosure rate is approximately 30%.
 
Commercial mortgage-backed securities of $2.1 billion are rated predominantly AAA, broadly diversified with over 25,000 loans and seasoned with 73% of the portfolio issued before 2006. The average loan-to-value ratio is approximately 66% with a debt service coverage ratio in excess of 1.7 and weighted average subordinated collateral of 27%. The cumulative foreclosure rate would have to rise to 42% and commercial real estate values would have to fall more than 30% from their current levels before principal is impaired. The current annual delinquency rate is 4%.
 
Sub-prime asset-backed securities (current holdings of $55 million) are broadly diversified in over 90,000 loans with an average loan-to-value ratio of approximately 81% and an average FICO score of 600. With subordinated collateral of 30%, the cumulative 5-year foreclosure rate would have to rise to 45% and real estate values would have to fall more than 19% from their current levels before principal is impaired. The comparable historical cumulative 5-year foreclosure rate is 32%.
 
Auto loan asset-backed securities are rated predominantly AAA with a short duration of approximately 0.5 years and average subordinated collateral of 17%. Annual default rates would have to rise to 16 times their current level of about 2.4% before principal is impaired.

Investments 3	  	Page 16	

					
	 	ACE Limited
Investment Portfolio - 4
(in millions of U.S. dollars)
(Unaudited)	 		
 
Mortgage-backed and Asset-backed Fixed Income Portfolio
Amortized Cost at September 30, 2009

 	  	S&P Credit Rating	
 	  	AAA	  	AA	  	A	  	BBB	  	BB and below	  	Total	
Mortgage-backed securities	  			  			  			  			  			  			
Residential mortgage-backed (RMBS)	  			  			  			  			  			  			
GNMA	  	$	496	  	$	—  	  	$	—  	  	$	—  	  	$	—  	  	$	496	
FNMA	  	 	4,898	  	 	—  	  	 	—  	  	 	—  	  	 	—  	  	 	4,898	
Freddie Mac	  	 	1,894	  	 	—  	  	 	—  	  	 	—  	  	 	—  	  	 	1,894	
	  	 	 	  	 	 	  	 	 	  	 	 	  	 	 	  	 	 	
Total agency RMBS	  	 	7,288	  	 	—  	  	 	—  	  	 	—  	  	 	—  	  	 	7,288	
Non-agency RMBS	  	 	781	  	 	60	  	 	54	  	 	98	  	 	1,013	  	 	2,006	
	  	 	 	  	 	 	  	 	 	  	 	 	  	 	 	  	 	 	
Total residential mortgage-backed	  	 	8,069	  	 	60	  	 	54	  	 	98	  	 	1,013	  	 	9,294	
							
Commercial mortgage-backed	  	 	1,899	  	 	12	  	 	209	  	 	6	  	 	—  	  	 	2,126	
	  	 	 	  	 	 	  	 	 	  	 	 	  	 	 	  	 	 	
Total mortgage-backed securities	  	$	9,968	  	$	72	  	$	263	  	$	104	  	$	1,013	  	$	11,420	
	  	 	 	  	 	 	  	 	 	  	 	 	  	 	 	  	 	 	
Asset-backed securities	  			  			  			  			  			  			
Sub-prime	  	$	29	  	$	6	  	$	6	  	$	1	  	$	49	  	$	91	
Credit cards	  	 	29	  	 	8	  	 	—  	  	 	6	  	 	—  	  	 	43	
Autos	  	 	164	  	 	19	  	 	18	  	 	2	  	 	2	  	 	205	
Other	  	 	123	  	 	—  	  	 	1	  	 	5	  	 	2	  	 	131	
	  	 	 	  	 	 	  	 	 	  	 	 	  	 	 	  	 	 	
Total asset-backed securities	  	$	345	  	$	33	  	$	25	  	$	14	  	$	53	  	$	470	

Insured asset-backed securities represent $62 million, or 13% of our asset-backed security holdings.

Investments 4	  	Page 17	

					
	 	ACE Limited
Investment Portfolio - 5
(in millions of U.S. dollars)
(Unaudited)	  		
 
Market Value at September 30, 2009

 	  	S&P Credit Rating	
 	  	AAA	  	AA	  	A	  	BBB	  	Total	
U.S. Investment Grade Corporate Fixed Income Portfolio	  			  			  			  			  			
Banks	  	$	684	  	$	275	  	$	1,846	  	$	207	  	$	3,012	
Basic Materials	  	 	—  	  	 	—  	  	 	22	  	 	131	  	 	153	
Communications	  	 	—  	  	 	—  	  	 	545	  	 	618	  	 	1,163	
Consumer, Cyclical	  	 	1	  	 	63	  	 	114	  	 	136	  	 	314	
Consumer, Non-Cyclical	  	 	95	  	 	240	  	 	431	  	 	278	  	 	1,044	
Diversified Financial Services	  	 	57	  	 	59	  	 	63	  	 	171	  	 	350	
Energy	  	 	—  	  	 	13	  	 	170	  	 	551	  	 	734	
Industrial	  	 	160	  	 	367	  	 	153	  	 	116	  	 	796	
Utilities	  	 	—  	  	 	—  	  	 	346	  	 	421	  	 	767	
All Others	  	 	122	  	 	80	  	 	348	  	 	200	  	 	750	
	  	 	 	  	 	 	  	 	 	  	 	 	  	 	 	
Total	  	$	1,119	  	$	1,097	  	$	4,038	  	$	2,829	  	$	9,083	

U.S. Investment Grade Corporate Fixed Income Portfolio
 
The average credit quality of ACE’s US investment grade bond portfolio is very high at AA. 59% of investment grade securities holdings are rated AAA or guaranteed by governments or quasi-government agencies.
 
ACE prohibits investments in complex structured securities (e.g. CDOs, CLOs) and over-the-counter derivatives and does not permit the use of portfolio leverage.
 
Corporate bond holdings are highly diversified across industries and geographies. Issuer limits are based on credit rating (AA 2%, A 1%, BBB 0.5% of total portfolio) and are monitored on a daily basis by ACE via an internal compliance system.

Investments 5	  	Page 18	

					
	 	ACE Limited
Investment Portfolio - 6
(in millions of U.S. dollars)
(Unaudited)	 		
 
Market Value at September 30, 2009

 	  	S&P Credit Rating	
 	  	BB	  	B	  	CCC	  	Other	  	Total	
Below Investment Grade Corporate Fixed Income Portfolio	  			  			  			  			  			
Basic Materials	  	$	165	  	$	88	  	$	22	  	$	7	  	$	282	
Communications	  	 	379	  	 	261	  	 	8	  	 	7	  	 	655	
Consumer, Cyclical	  	 	191	  	 	216	  	 	10	  	 	17	  	 	434	
Consumer, Non-Cyclical	  	 	298	  	 	433	  	 	10	  	 	8	  	 	749	
Diversified Financial Services	  	 	30	  	 	25	  	 	26	  	 	15	  	 	96	
Energy	  	 	508	  	 	139	  	 	5	  	 	—  	  	 	652	
Industrial	  	 	291	  	 	163	  	 	12	  	 	10	  	 	476	
Utilities	  	 	227	  	 	107	  	 	—  	  	 	—  	  	 	334	
All Others	  	 	59	  	 	46	  	 	6	  	 	3	  	 	114	
	  	 	 	  	 	 	  	 	 	  	 	 	  	 	 	
Total	  	$	2,148	  	$	1,478	  	$	99	  	$	67	  	$	3,792	

Below Investment Grade Corporate Fixed income Portfolio
 
ACE manages high yield bonds as a distinct and separate asset class from investment grade bonds. ACE’s allocation to high yield bonds is explicitly set by internal management and is targeted to securities in the upper tier of credit quality (BB/B). Our minimum rating for initial purchase is BB/B.
 
Four external investment managers are responsible for high yield security selection and portfolio construction.
 
ACE’s high yield managers have a conservative approach to credit selection and very low historical default experience.
 
Securities holdings are highly diversified across industries and are subject to a 1.5% issuer limit as a percentage of high yield allocation (or 0.1% of total portfolio). The portfolio is comprised of over 500 issuers with our largest current issuer exposure at $68 million. ACE monitors position limits on a daily basis through an internal compliance system.
 
Derivative and structured securities (e.g. credit default swaps, CLOs) are not permitted in high yield portfolios.

Investments 6	  	Page 19	

					
	 	ACE Limited
Investment Portfolio - 7
(in millions of U.S. dollars)
(Unaudited)	 		
 
Market Value at September 30, 2009

 	  	S&P Credit Rating	
 	  	AAA	  	AA	  	A	  	BBB	  	BB and below	  	Total	
Non-U.S. Fixed Income Portfolio	  			  			  			  			  			  			
United Kingdom	  	$	1,230	  	$	—  	  	$	—  	  	$	—  	  	$	—  	  	$	1,230	
Germany	  	 	273	  	 	—  	  	 	—  	  	 	—  	  	 	—  	  	 	273	
France	  	 	273	  	 	—  	  	 	—  	  	 	—  	  	 	—  	  	 	273	
Canada	  	 	806	  	 	—  	  	 	—  	  	 	—  	  	 	—  	  	 	806	
Japan	  	 	—  	  	 	224	  	 	—  	  	 	—  	  	 	—  	  	 	224	
Other Foreign Government	  	 	662	  	 	449	  	 	480	  	 	259	  	 	40	  	 	1,890	
Non-U.S. Corporate	  	 	1,189	  	 	765	  	 	1,966	  	 	1,507	  	 	607	  	 	6,034	
	  	 	 	  	 	 	  	 	 	  	 	 	  	 	 	  	 	 	
	  	$	4,433	  	$	1,438	  	$	2,446	  	$	1,766	  	$	647	  	$	10,730	

Non-U.S. Fixed Income Portfolio
 
ACE’s non-U.S. investment grade fixed income portfolios are currency-matched with the insurance liabilities of ACE’s non-U.S. operations. 89% of ACE’s non-U.S. fixed income is denominated in G7 currencies.
 
Average credit quality of non-U.S. fixed income securities is very high at AA and 63% of holdings are rated AAA or guaranteed by governments or quasi-government agencies.
 
Corporate bond holdings are highly diversified across industries and geographies. Issuer limits are based on credit rating (AA 2%, A 1%, BBB 0.5% of total portfolio) and are monitored on a daily basis by ACE via an internal compliance system.

Investments 7	  	Page 20	

					
	 	ACE Limited
Investment Portfolio - 8
(in millions of U.S. dollars)
(Unaudited)	 		
 
Investment portfolio
Top 25 Exposures - Fixed Maturity Investments

September 30, 2009	  	Rating	
General Electric Co	  	$	451	  	AA+	
JP Morgan Chase & Co	  	 	434	  	A+	
Bank of America Corp	  	 	362	  	A	
Wells Fargo & Co	  	 	324	  	AA-	
Verizon Communications Inc	  	 	268	  	A	
Citigroup Inc	  	 	252	  	A	
AT&T INC	  	 	241	  	A	
Goldman Sachs Group Inc	  	 	227	  	A	
Morgan Stanley	  	 	197	  	A	
HSBC Holdings Plc	  	 	182	  	AA-	
Comcast Corp	  	 	173	  	BBB+	
Credit Suisse Group	  	 	136	  	A	
Lloyds TSB Group Plc	  	 	129	  	A	
Telecom Italia SpA	  	 	124	  	BBB	
ConocoPhillips	  	 	124	  	A	
Time Warner Cable Inc	  	 	116	  	BBB	
Barclays PLC	  	 	109	  	A+	
XTO Energy Inc	  	 	109	  	BBB	
American Express Co	  	 	95	  	BBB+	
Roche Holding AG	  	 	94	  	AA-	
Dominion Resources Inc/VA	  	 	91	  	A-	
News Corp Ltd	  	 	90	  	BBB+	
Banco Santander SA	  	 	89	  	AA	
Deutsche Telekom AG	  	 	87	  	BBB+	
Vodafone Grouping PLC	  	 	84	  	A-	

Investments 8	  	Page 21	

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

 	  	Three months ended September 30, 2009	 	 	Nine months ended September 30, 2009	 	
 	  	Net Realized
Gains
(Losses)  (1)	 	 	Net Unrealized
Gains
(Losses)	  	Net
Impact	 	 	Net Realized
Gains
(Losses)  (1)	 	 	Net Unrealized
Gains
(Losses)  (2)	  	Net
Impact	 	
Fixed maturities	  	$	(1	) 	 	$	1,602	  	$	1,601	  	 	$	(120	) 	 	$	2,736	  	$	2,616	  	
Equity securities	  	 	1	  	 	 	177	  	 	178	  	 	 	(180	) 	 	 	198	  	 	18	  	
Equity and fixed income derivatives	  	 	28	  	 	 	—  	  	 	28	  	 	 	62	  	 	 	—  	  	 	62	  	
Foreign exchange gains (losses)	  	 	(7	) 	 	 	—  	  	 	(7	) 	 	 	(31	) 	 	 	—  	  	 	(31	) 	
Other	  	 	(16	) 	 	 	198	  	 	182	  	 	 	(133	) 	 	 	260	  	 	127	  	
	  	 	 	 	 	 	 	  	 	 	 	 	 	 	 	 	 	 	  	 	 	 	
Sub-total	  	 	5	  	 	 	1,977	  	 	1,982	  	 	 	(402	) 	 	 	3,194	  	 	2,792	  	
Mark-to-market gains (losses) from derivative transactions (3)	  	 	(228	) 	 	 	—  	  	 	(228	) 	 	 	(167	) 	 	 	—  	  	 	(167	) 	
	  	 	 	 	 	 	 	  	 	 	 	 	 	 	 	 	 	 	  	 	 	 	
Total gains (losses)	  	 	(223	) 	 	 	1,977	  	 	1,754	  	 	 	(569	) 	 	 	3,194	  	 	2,625	  	
Partially-owned entities (4)	  	 	(43	) 	 	 	15	  	 	(28	) 	 	 	(32	) 	 	 	9	  	 	(23	) 	
Income tax expense (benefit)	  	 	(59	) 	 	 	354	  	 	295	  	 	 	(121	) 	 	 	555	  	 	434	  	
	  	 	 	 	 	 	 	  	 	 	 	 	 	 	 	 	 	 	  	 	 	 	
Net gains (losses)	  	$	(207	) 	 	$	1,638	  	$	1,431	  	 	$	(480	) 	 	$	2,648	  	$	2,168	  	

(1)	Other-than-temporary impairments for the quarter of $58 million include $39 million for fixed maturities, $nil million for equities and $19 million for other investments. Year to date other-than-temporary impairments of $364 million include $217 million for fixed maturities, $26 million for equities and $121 million for other investments.	
 
(2)	Excludes $242 million of change in unrealized losses, net of tax of $63 million, related to the adoption of certain provisions that amended GAAP relating to other-than-temporary impairments.	
 
(3)	The quarter includes $209 million of realized losses on the life reinsurance operations which is comprised of a $65 million loss on guaranteed minimum income benefit derivatives and $144 million of losses on other derivatives, including S&P put options and futures. Year to date includes $82 million of realized losses on the life reinsurance operations which is comprised of a $218 million gain on guaranteed minimum income benefit derivatives offset by $300 million of losses on other derivatives, including S&P put options and futures.	
 
(4)	Net realized and unrealized gains (losses) on partially-owned entities that meet the requirements for equity accounting. The net income or loss is included in other income (expense).	

 	  	Three months ended September 30, 2008	 	 	Nine months ended September 30, 2008	 	
 	  	Net Realized
Gains
(Losses)  (5)	 	 	Net Unrealized
Gains
(Losses)	 	 	Net
Impact	 	 	Net Realized
Gains
(Losses)  (5)	 	 	Net Unrealized
Gains
(Losses)	 	 	Net
Impact	 	
Fixed maturities	  	$	(272	) 	 	$	(952	) 	 	$	(1,224	) 	 	$	(575	) 	 	$	(1,605	) 	 	$	(2,180	) 	
Equity securities	  	 	(126	) 	 	 	(95	) 	 	 	(221	) 	 	 	(167	) 	 	 	(326	) 	 	 	(493	) 	
Equity and fixed income derivatives	  	 	15	  	 	 	—  	  	 	 	15	  	 	 	(10	) 	 	 	—  	  	 	 	(10	) 	
Foreign exchange gains (losses)	  	 	15	  	 	 	—  	  	 	 	15	  	 	 	33	  	 	 	—  	  	 	 	33	  	
Other	  	 	4	  	 	 	(72	) 	 	 	(68	) 	 	 	(19	) 	 	 	(88	) 	 	 	(107	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Sub-total	  	 	(364	) 	 	 	(1,119	) 	 	 	(1,483	) 	 	 	(738	) 	 	 	(2,019	) 	 	 	(2,757	) 	
Mark-to-market gains (losses) from derivative transactions (6)	  	 	(146	) 	 	 	—  	  	 	 	(146	) 	 	 	(251	) 	 	 	—  	  	 	 	(251	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total gains (losses)	  	 	(510	) 	 	 	(1,119	) 	 	 	(1,629	) 	 	 	(989	) 	 	 	(2,019	) 	 	 	(3,008	) 	
Partially-owned entities (7)	  	 	(23	) 	 	 	(20	) 	 	 	(43	) 	 	 	69	  	 	 	(6	) 	 	 	63	  	
Income tax expense (benefit)	  	 	(83	) 	 	 	(265	) 	 	 	(348	) 	 	 	(130	) 	 	 	(317	) 	 	 	(447	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net gains (losses)	  	$	(450	) 	 	$	(874	) 	 	$	(1,324	) 	 	$	(790	) 	 	$	(1,708	) 	 	$	(2,498	) 	

(5)	Impairments for the quarter of $224 million include $196 million for fixed maturities, $28 million for equities and $nil for other investments. Year to date impairments of $623 million include $495 million for fixed maturities, $103 million for equities and $25 million for other investments.	
 
(6)	Includes $161 million and $279 million of realized losses primarily on the guaranteed minimum income benefit derivatives from our life reinsurance operations for the quarter and year to date, respectively.	
 
(7)	Net realized and unrealized gains (losses) on partially-owned entities that meet the requirements for equity accounting. The net income or loss is included in other income (expense).	

Investment Gains (Losses)	  	Page 22	

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

 	  	September 30
2009	 	 	June 30
2009	 	 	March 31
2009	 	 	December 31
2008	 	 	December 31
2007	 	
Total short-term debt	  	$	200	  	 	$	216	  	 	$	466	  	 	$	471	  	 	$	372	  	
Total long-term debt	  	 	3,321	  	 	 	3,322	  	 	 	2,802	  	 	 	2,806	  	 	 	1,811	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total debt	  	$	3,521	  	 	$	3,538	  	 	$	3,268	  	 	$	3,277	  	 	$	2,183	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total trust preferred securities	  	$	309	  	 	$	309	  	 	$	309	  	 	$	309	  	 	$	309	  	

Perpetual preferred shares	  	$	—  	  	 	$	—  	  	 	$	—  	  	 	$	—  	  	 	$	557	  	
Common shareholders’ equity	  	 	18,733	  	 	 	16,561	  	 	 	14,718	  	 	 	14,446	  	 	 	16,120	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total shareholders’ equity	  	$	18,733	  	 	$	16,561	  	 	$	14,718	  	 	$	14,446	  	 	$	16,677	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total capitalization	  	$	22,563	  	 	$	20,408	  	 	$	18,295	  	 	$	18,032	  	 	$	19,169	  	
						
Tangible capital (1)	  	$	18,791	  	 	$	16,652	  	 	$	14,560	  	 	$	14,285	  	 	$	16,331	  	
						
Leverage ratios	  				 				 				 				 				
Debt/ total capitalization	  	 	15.6	% 	 	 	17.3	% 	 	 	17.9	% 	 	 	18.2	% 	 	 	11.4	% 	
Debt plus trust preferred securities/ total capitalization	  	 	17.0	% 	 	 	18.9	% 	 	 	19.6	% 	 	 	19.9	% 	 	 	13.0	% 	
Debt/ tangible capital	  	 	18.7	% 	 	 	21.2	% 	 	 	22.4	% 	 	 	22.9	% 	 	 	13.4	% 	
Debt plus trust preferred securities/ tangible capital	  	 	20.4	% 	 	 	23.1	% 	 	 	24.6	% 	 	 	25.1	% 	 	 	15.3	% 	
 
(1)	Tangible capital is equal to total capitalization less goodwill and other intangible assets.	

Capital Structure	  	Page 23	

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

 	  	Par Amount
Outstanding	  	Carrying value	  	Coupon	 	 	Maturity Date	
Debt and Trust Preferred	  			  			  			 		
ACE INA Holdings Inc. Subordinated Notes	  	$	200	  	$	200	  	8.41	% 	 	December 6, 2009	
ACE European Holdings No2 Limited Term Loan	  	$	163	  	$	163	  	5.25	% 	 	December 13, 2010	
ACE INA Holdings Inc. Term Loan	  	$	50	  	$	50	  	5.61	% 	 	December 19, 2011	
ACE INA Holdings Inc. Term Loan	  	$	450	  	$	450	  	4.15	% 	 	April 1, 2013	
ACE INA Holdings Inc. Senior Notes	  	$	500	  	$	500	  	5.88	% 	 	June 15, 2014	
ACE INA Holdings Inc. Senior Notes	  	$	450	  	$	446	  	5.60	% 	 	May 15, 2015	
ACE INA Holdings Inc. Senior Notes	  	$	500	  	$	500	  	5.70	% 	 	February 15, 2017	
ACE INA Holdings Inc. Senior Notes	  	$	300	  	$	300	  	5.80	% 	 	March 15, 2018	
ACE INA Holdings Inc. Senior Notes	  	$	500	  	$	500	  	5.90	% 	 	June 15, 2019	
ACE INA Holdings Inc. Debentures	  	$	100	  	$	100	  	8.88	% 	 	August 15, 2029	
ACE Capital Trust II Capital Securities	  	$	300	  	$	309	  	9.70	% 	 	April 1, 2030	
ACE INA Holdings Inc. Senior Notes	  	$	300	  	$	298	  	6.70	% 	 	May 15, 2036	
Other	  	$	14	  	$	14	  			 		
	  	 	 	  	 	 	  			 		
	  	$	3,827	  	$	3,830	  			 		

 	  	Commitment	  	LOC Usage	  	 	 	 	Maturity Date	
Credit Facilities	  			  			  			 		
Syndicated Letter of Credit Facility	  	$	1,000	  	$	697	  			 	November 8, 2012	
Revolving Credit / LOC Facility	  	$	500	  	$	146	  			 	November 8, 2012	
Funds at Lloyds Capital Facility	  	$	490	  	$	489	  			 	December 31, 2013	
Bilateral Letter of Credit Facility	  	$	500	  	$	165	  			 	September 20, 2014	
	  	 	 	  	 	 	  			 		
	  	$	2,490	  	$	1,497	  			 		

			
Capital Structure 2	  	Page 24	

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

 	  	Three months ended September 30	 	 	Nine months ended September 30	 	
 	  	2009	 	 	2008	 	 	2009	 	 	2008	 	
Numerator	  				 				 				 				
Income excluding net realized gains (losses) (1)	  	$	701	  	 	$	504	  	 	$	2,076	  	 	$	1,967	  	
Perpetual preferred dividend	  	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	(24	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income to common shares, excl. net realized gains (losses)	  	 	701	  	 	 	504	  	 	 	2,076	  	 	 	1,943	  	
Net realized gains (losses), net of income tax	  	 	(207	) 	 	 	(450	) 	 	 	(480	) 	 	 	(790	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income available to the holders of common shares	  	$	494	  	 	$	54	  	 	$	1,596	  	 	$	1,153	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Rollforward of Common Shares Outstanding	  				 				 				 				
Shares - beginning of period	  	 	336,097,451	  	 	 	333,249,308	  	 	 	333,645,471	  	 	 	329,704,531	  	
Issued under employee stock purchase plan	  	 	—  	  	 	 	—  	  	 	 	259,395	  	 	 	203,455	  	
Shares (cancelled) granted	  	 	(35,204	) 	 	 	(58,647	) 	 	 	2,057,731	  	 	 	1,093,933	  	
Issued for option exercises	  	 	218,229	  	 	 	203,947	  	 	 	317,879	  	 	 	2,392,689	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Shares - end of period	  	 	336,280,476	  	 	 	333,394,608	  	 	 	336,280,476	  	 	 	333,394,608	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Denominator (2) 	  				 				 				 				
Weighted average shares outstanding	  	 	337,190,828	  	 	 	333,632,699	  	 	 	336,501,257	  	 	 	332,539,162	  	
Effect of other dilutive securities	  	 	1,221,041	  	 	 	1,639,720	  	 	 	579,116	  	 	 	1,933,770	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Adj. wtd. avg. shares outstanding and assumed conversions	  	 	338,411,869	  	 	 	335,272,419	  	 	 	337,080,373	  	 	 	334,472,932	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Basic earnings per share	  				 				 				 				
Income excluding net realized gains (losses) (1)	  	$	2.08	  	 	$	1.51	  	 	$	6.17	  	 	$	5.84	  	
Net realized gains (losses), net of income tax	  	 	(0.62	) 	 	 	(1.35	) 	 	 	(1.43	) 	 	 	(2.37	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income	  	$	1.46	  	 	$	0.16	  	 	$	4.74	  	 	$	3.47	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Diluted earnings per share	  				 				 				 				
Income excluding net realized gains (losses) (1)	  	$	2.07	  	 	$	1.50	  	 	$	6.16	  	 	$	5.81	  	
Net realized gains (losses), net of income tax	  	 	(0.61	) 	 	 	(1.34	) 	 	 	(1.43	) 	 	 	(2.36	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income	  	$	1.46	  	 	$	0.16	  	 	$	4.73	  	 	$	3.45	  	

(1)	See page 26 Non-GAAP Financial Measures.	
 
(2)	The current and prior year calculations have been amended due to the adoption of certain provisions included in Accounting Standards Codification Topic 260, Earnings Per Share. These provisions provide additional guidance on the calculation of earnings per share and require unvested share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents (whether paid or unpaid) to be included in the computation of earnings per share pursuant to the two-class method.	

Earnings per share	  	Page 25	

					
	  	ACE Limited	  	 	
	  	Non-GAAP Financial Measures	  		
	  	(in millions of U.S. dollars)	  		
	  	(Unaudited)	  		
 
Regulation G - Non-GAAP Financial Measures
 
In presenting our results, we have included and discussed certain non-GAAP measures. These non-GAAP measures, which may be defined differently by other companies, are important for an understanding of our overall results of operations. However, they should not be viewed as a substitute for measures determined in accordance with generally accepted accounting principles (GAAP). A reconciliation of book value per common share is provided on page 27.
 
In presenting our segment operating results, we have shown our performance with reference to underwriting results. Underwriting results are calculated by subtracting losses and loss expenses, policy benefits, policy acquisition costs, and administrative expenses from net premiums earned. We use underwriting results and operating ratios to monitor the results of our operations without the impact of certain factors, including investment income, other income and expenses, interest and income tax expense, and net realized gains (losses).
 
The following non-GAAP measure is a common performance measurement and is defined as income excluding net realized gains (losses) and the related tax expense (benefit). We believe this presentation enhances the understanding of our results of operations by highlighting the underlying profitability of our insurance business. We exclude net realized gains (losses) and net realized gains (losses) included in other income (expense) related to partially owned entities because the amount of these gains (losses) is heavily influenced by, and fluctuates in part according to, the availability of market opportunities. Income excluding net realized gains (losses) should not be viewed as a substitute for net income determined in accordance with GAAP.

 	  	3Q-09	 	 	2Q-09	 	 	1Q-09	 	 	4Q-08	 	 	3Q-08	 	 	YTD
2009	 	 	YTD
2008	 	 	Full Year
2008	 	
Net income, as reported	  	$	494	  	 	$	535	  	 	$	567	  	 	$	20	  	 	$	54	  	 	$	1,596	  	 	$	1,177	  	 	$	1,197	  	
Net realized gains (losses)	  	 	(223	) 	 	 	(225	) 	 	 	(121	) 	 	 	(644	) 	 	 	(510	) 	 	 	(569	) 	 	 	(989	) 	 	 	(1,633	) 	
Net realized gains (losses) in other income (expense) (1)	  	 	(43	) 	 	 	8	  	 	 	3	  	 	 	(48	) 	 	 	(23	) 	 	 	(32	) 	 	 	69	  	 	 	21	  	
Income tax expense (benefit) on net realized gains (losses)	  	 	(59	) 	 	 	(46	) 	 	 	(16	) 	 	 	(88	) 	 	 	(83	) 	 	 	(121	) 	 	 	(130	) 	 	 	(218	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income excluding net realized gains (losses)	  	$	701	  	 	$	706	  	 	$	669	  	 	$	624	  	 	$	504	  	 	$	2,076	  	 	$	1,967	  	 	$	2,591	  	

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

Reconciliation Non-GAAP	  	Page 26	

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

 	  	September 30
2009	 	 	June 30
2009	 	 	March 31
2009	 	 	December 31
2008	 	 	September 30
2008	 	
Shareholders’ equity	  	$	18,733	  	 	$	16,561	  	 	$	14,718	  	 	$	14,446	  	 	$	15,356	  	
Perpetual Preferred shares	  	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Numerator for book value per share calculation	  	 	18,733	  	 	 	16,561	  	 	 	14,718	  	 	 	14,446	  	 	 	15,356	  	
Less: goodwill and other intangible assets	  	 	3,772	  	 	 	3,756	  	 	 	3,735	  	 	 	3,747	  	 	 	3,817	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Numerator for tangible book value per share	  	$	14,961	  	 	$	12,805	  	 	$	10,983	  	 	$	10,699	  	 	$	11,539	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Denominator	  	 	336,280,476	  	 	 	336,097,451	  	 	 	335,890,644	  	 	 	333,645,471	  	 	 	333,394,608	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Book value per common share	  	$	55.71	  	 	$	49.27	  	 	$	43.82	  	 	$	43.30	  	 	$	46.06	  	
Tangible book value per common share	  	$	44.49	  	 	$	38.10	  	 	$	32.70	  	 	$	32.07	  	 	$	34.61	  	
						
Reconciliation of Book Value	  				 				 				 				 				
						
Shareholders’ equity, beginning of quarter	  	$	16,561	  	 	$	14,718	  	 	$	14,446	  	 	$	15,356	  	 	$	16,327	  	
Income excluding net realized gains (losses)	  	 	701	  	 	 	706	  	 	 	669	  	 	 	624	  	 	 	504	  	
Net realized gains (losses), net of tax	  	 	(207	) 	 	 	(171	) 	 	 	(102	) 	 	 	(604	) 	 	 	(450	) 	
Net unrealized gains (losses), net of tax (1)	  	 	1,638	  	 	 	1,199	  	 	 	(189	) 	 	 	(594	) 	 	 	(874	) 	
Cumulative translation, net of tax	  	 	113	  	 	 	229	  	 	 	(38	) 	 	 	(310	) 	 	 	(98	) 	
Dividend declared on common shares	  	 	(105	) 	 	 	(104	) 	 	 	(88	) 	 	 	(91	) 	 	 	—  	  	
Income tax valuation allowance on the adoption of new OTTI standard	  	 	(1	) 	 	 	(46	) 	 	 	—  	  	 	 	—  	  	 	 	—  	  	
Other (2)	  	 	33	  	 	 	30	  	 	 	20	  	 	 	65	  	 	 	(53	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
	  	$	18,733	  	 	$	16,561	  	 	$	14,718	  	 	$	14,446	  	 	$	15,356	  	

(1)	Net unrealized gain (losses) year-to-date excludes $242 million of change in unrealized losses, net of tax of $63 million, related to the adoption of certain provisions that amended GAAP relating to other-than-temporary impairments (OTTI).	
 
(2)	Other includes proceeds from exercise of stock options, change in minimum pension liability, and stock compensation.	

Reconciliation Book Value	  	Page 27	

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

 	  	3Q-09	 	 	2Q-09	 	 	1Q-09	 	 	4Q-08	 	 	3Q-08	 	 	YTD
2009	 	 	YTD
2008	 	 	Full Year
2008	 	
Net income	  	$	494	  	 	$	535	  	 	$	567	  	 	$	20	  	 	$	54	  	 	$	1,596	  	 	$	1,177	  	 	$	1,197	  	
Net unrealized appreciation (depreciation) on investments	  				 				 				 				 				 				 				 				
Unrealized appreciation (depreciation) on investments (1)	  	 	1,985	  	 	 	972	  	 	 	(446	) 	 	 	(1,198	) 	 	 	(1,522	) 	 	 	2,511	  	 	 	(2,750	) 	 	 	(3,948	) 	
Reclassification adjustment for net realized gains (losses) included in net income	  	 	51	  	 	 	157	  	 	 	179	  	 	 	464	  	 	 	383	  	 	 	387	  	 	 	725	  	 	 	1,189	  	
Change in cumulative translation adjustments	  	 	160	  	 	 	325	  	 	 	(58	) 	 	 	(468	) 	 	 	(155	) 	 	 	427	  	 	 	(122	) 	 	 	(590	) 	
Change in minimum pension liability	  	 	1	  	 	 	(10	) 	 	 	(4	) 	 	 	17	  	 	 	5	  	 	 	(13	) 	 	 	6	  	 	 	23	  	
Income tax (expense) benefit related to other comprehensive income items (2)	  	 	(421	) 	 	 	(289	) 	 	 	99	  	 	 	292	  	 	 	320	  	 	 	(611	) 	 	 	355	  	 	 	647	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Other comprehensive income (loss)	  	 	1,776	  	 	 	1,155	  	 	 	(230	) 	 	 	(893	) 	 	 	(969	) 	 	 	2,701	  	 	 	(1,786	) 	 	 	(2,679	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Comprehensive income (loss)	  	$	2,270	  	 	$	1,690	  	 	$	337	  	 	$	(873	) 	 	$	(915	) 	 	$	4,297	  	 	$	(609	) 	 	$	(1,482	) 	

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

Comprehensive Income	  	Page 28	

					
	  	ACE Limited	  	 	
	  	Glossary	  		

 
Annualized return on ordinary shareholders’ equity (ROE) : Income excluding net realized gains (losses) less perpetual preferred securities divided by average common shareholders’ equity for the period. To annualize a quarterly rate multiply by four.
 
Book value per common share : Common shareholders’ equity divided by the shares outstanding.
 
Combined Insurance : Combined Insurance Company of America, acquired April 1, 2008.
 
Combined ratio : The sum of the loss and loss expense ratio, acquisition cost ratio and the administrative expense ratio excluding life business. Calculated on a GAAP basis.
 
Common shareholders’ equity : Shareholders’ equity less perpetual preferred shares.
 
Effective tax rate : Income tax expense divided by the sum of income tax expense and income excluding net realized gains (losses).
 
FAS 115 : Unrealized gains (losses) on investments and the deferred tax component included in shareholders’ equity.
 
G7 : A group of seven industrialized nations including Canada, France, Germany, Italy, Japan, United Kingdom, and the United States.
 
Life underwriting income : Net premiums earned and net investment income less policy benefits, acquisition costs, and administrative expenses.
 
NM : Not meaningful.
 
Tangible book value per common share : Common shareholders’ equity less goodwill and other intangible assets divided by the shares outstanding.
 
Tangible capital : Total capitalization less goodwill and other intangible assets.
 
Total capitalization : Short-term debt, long-term debt, trust preferreds, perpetual preferred shares, and shareholders’ equity.

Glossary	  	Page 29