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) – July 26, 2011
 
ACE LIMITED
(Exact name of registrant as specified in its charter)

Switzerland	 	1-11778	 	98-0091805	
(State or other jurisdiction of Incorporation)	 	(Commission File Number)	 	(I.R.S. Employer Identification No.)	
 
Baerengasse 32
CH-8001 Zurich, Switzerland
Telephone: +41 (0)43 456 76 00
(Address of principal executive offices)
 
Not applicable
(Former name or former address, if changed since last report)
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions ( see General Instruction A.2. below):
 
¨	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)	
 
¨	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)	
 
¨	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-(b))	
 
¨	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))	

 

Item 2.02.	Results of Operations and Financial Condition 	
 
On July 26, 2011, ACE Limited issued a press release reporting its second quarter 2011 results and the availability of its second quarter 2011 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 July 26, 2011, reporting second quarter 2011 results	
		
 	99.2	  	  	Second Quarter 2011 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: July 26, 2011

EXHIBIT INDEX

Number	  	Description	  	Method of Filing	 	
			
99.1	  	Press release, dated July 26, 2011, reporting second quarter results	  	 	Furnished herewith	  	
			
99.2	  	Second Quarter 2011 Financial Supplement	  	 	Furnished herewith	  	

Exhibit 99.1

 

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

 
					
	 	Investor Contact:	  	Helen M. Wilson	
	 		  	(441) 299-9283	
	 		  	helen.wilson@acegroup.com	
			
	 	Media Contact:	  	Stephen M. Wasdick	
	 		  	(212) 827-4444	
	 		  	stephen.wasdick@acegroup.com	
 
ACE REPORTS SECOND QUARTER NET INCOME OF $607 MILLION,
OPERATING INCOME OF $686 MILLION AND COMBINED RATIO OF 92.6%;
BOOK VALUE UP 3% IN THE QUARTER, 5% FOR THE YEAR;
P&C NET WRITTEN PREMIUMS UP 15% IN THE QUARTER;
OPERATING INCOME GUIDANCE INCREASED TO $6.00-$6.20 PER SHARE
 
ZURICH, July 26, 2011 — ACE Limited (NYSE: ACE) today reported net income for the quarter ended June 30, 2011 of $1.77 per share, compared with $1.98 per share for the same quarter last year (1) ; income excluding net realized gains (losses) was $2.01 per share for both periods. (2) Book value increased $737 million during the quarter, up 3% from March 31, 2011. Book value per share stands at $71.36. Annualized operating return on average equity for the quarter was 12.3%. (3) The property and casualty (P&C) combined ratio for the quarter was 92.6%.
 
Second Quarter Summary
(in millions, except per share amounts)
(Unaudited)

   	  	    	 	 	    	 	 	    	 	 	(Per Share - Diluted)	 	
 	  	2011	 	 	2010	 	 	Change	 	 	2011	 	 	2010	 	 	Change	 	
Net income	  	$	607	 	 	$	677	 	 	 	(10	)% 	 	$	1.77	 	 	$	1.98	 	 	 	(11	)% 	
Net realized gains (losses), net of tax	  	 	(79	) 	 	 	(11	) 	 	 	NM	  	 	 	(0.24	) 	 	 	(0.03	) 	 	 	NM	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income excluding net realized gains (losses), net of tax (2)	  	$	686	 	 	$	688	 	 	 	0	% 	 	$	2.01	 	 	$	2.01	 	 	 	0	% 	

Net income for the six months ended June 30, 2011, was $2.54 per share, compared with $4.21 per share for the same period in 2010. For the six months ended June 30, 2011, income excluding net realized gains (losses) was $2.80 per share, compared with $3.72 per share for 2010. Book value increased $1.1 billion, up 5% from December 31, 2010. The P&C combined ratio for the six months ended June 30, 2011, was 98.4%.
 
Six Months Summary
(in millions, except per share amounts)
(Unaudited)

   	  	 	 	 	 	 	  	 	 	 	(Per Share - Diluted)	 	
 	  	2011	 	 	2010	 	  	Change	 	 	2011	 	 	2010	 	  	Change	 	
Net income	  	$	866	 	 	$	1,432	 	  	 	(40	)% 	 	$	2.54	 	 	$	4.21	 	  	 	(40	)% 	
Net realized gains (losses), net of tax	  	 	(88	) 	 	 	165	 	  	 	NM	  	 	 	(0.26	) 	 	 	0.49	 	  	 	NM	  	
	  	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	  	 	 	 	
Income excluding net realized gains (losses), net of tax (2)	  	$	954	 	 	$	1,267	 	  	 	(25	)% 	 	$	2.80	 	 	$	3.72	 	  	 	(25	)% 	

Evan G. Greenberg, Chairman and Chief Executive Officer of ACE Limited, commented: “ACE had an excellent second quarter. Operating income was $686 million and our ROE was approximately 12.5%. Book value and book value per share grew 3% in the quarter and are up 5% and 4%, respectively, for the year.
 
“For the industry, this was another difficult quarter for natural catastrophes, while the challenges of a competitive insurance market globally and sluggish economic conditions in developed markets continue to weigh on growth. In contrast, our strategy of investing for growth, both organically and through acquisition, while resolutely maintaining underwriting discipline, continues to distinguish our company in terms of revenue growth, earnings and risk management. Our P&C net premiums grew 15% in the quarter while our combined ratio was 92.6%, which included net catastrophe losses of just over $100 million.
 
“Looking ahead to the second half of the year, we are confident we will achieve double-digit revenue growth and meet or exceed our updated earnings projections. We are well positioned to capitalize on a modestly improving commercial P&C pricing environment. In light of what we now know, we are raising full-year guidance to $6.00 - $6.20 per share of after-tax operating income from $5.40 - $5.70 per share projected at the end of last quarter.”
 
Operating highlights for the quarter ended June 30, 2011, were as follows: (1)
 
 	•	 	P&C net premiums written increased 15% and P&C net premiums earned increased 16%. On a constant-dollar basis, P&C net premiums written and earned increased 11% and 12%, respectively.	
 	•	 	Total pre-tax catastrophe losses including reinstatement premiums were $134 million, compared with $81 million for the second quarter of 2010. The catastrophe losses represent 4.1 percentage points of the combined ratio.	
 	•	 	The P&C combined ratio was 92.6% compared with 89.7% last year.	
 	•	 	P&C underwriting income was $245 million compared with $294 million in 2010.	
 	•	 	The expense ratio was 29.7% compared with 30.9% last year, an improvement of 1.2 percentage points to the combined ratio.	
 
Page 2/8

 	•	 	Favorable prior period development pre-tax was $146 million compared with $149 million in 2010.	
 	•	 	Operating cash flow was $1.1 billion for the quarter. Cash flow from operations this quarter includes $312 million of cash collateral related to a one-off transaction.	
 	•	 	Net loss reserves increased $482 million in the quarter and $1.1 billion for the year.	
 	•	 	Net investment income increased 10% to $569 million due primarily to a slower rate of turnover in the portfolio as book yield stabilized, a positive impact from foreign exchange and private equity distributions.	
 	•	 	Annualized operating return on average equity was 12.3% for the quarter. (3)	
 	•	 	Book value per share (4 ) increased 3% from $69.33 at March 31, 2011, to $71.36, and increased 4% from $68.59 at December 31, 2010.	
 	•	 	Tangible book value per share (4 ) increased 3% from $55.31 at March 31, 2011, to $56.98, and increased 4% from $54.66 at December 31, 2010.	
 	•	 	Net realized and unrealized gains after tax from our investment portfolio totaled approximately $137 million compared to $422 million last year.	
 
Details of our financial results for our business segments are available in the ACE Limited Financial Supplement. Key segment items for the quarter ended June 30, 2011, include:
 
 	•	 	Insurance-North American: Net premiums written increased 21%. The combined ratio was 95.0% compared with 90.3%.	
 	•	 	Insurance-Overseas General: Net premiums written increased 14%. The combined ratio was 91.4% compared with 90.9%.	
 	•	 	Global Reinsurance: Net premiums written decreased 2%. The combined ratio was 67.9% compared with 64.7%.	
 	•	 	Life: Revenues increased 16%. Operating income was $95 million compared with $78 million.	
 
Please refer to the ACE Limited Financial Supplement, dated June 30, 2011, which is posted on our 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 company is increasing earnings guidance for full-year 2011 as a result of actual experience in the second quarter, a projected higher run rate for investment income and a projected increase in underwriting results for the second half. Operating income is now expected to range between $6.00 and $6.20 per share for the full year. This includes $544 million after-tax in catastrophe losses for the first half, plus $200 million after-tax in catastrophe losses for the balance of the year. The guidance also includes $187 million of after-tax positive prior period development reflected in the first half. There is no prior period development included in our guidance for the second half.
 
ACE will host its second quarter earnings conference call and webcast on Wednesday, July 27, 2011, beginning at 8:30 a.m. Eastern. The earnings conference call will be available via live and archived webcast at www.acegroup.com or by dialing 800-967-7134 (within the United States) or 719-325-2122 (international); passcode 3473741. 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 3473741.
 
The ACE Group is a global leader in insurance and reinsurance serving a diverse group of clients. Headed by ACE Limited (NYSE:ACE), the ACE Group conducts its business on a worldwide basis with operating subsidiaries in more than 50 countries. Additional information can be found at: www.acegroup.com
 
Page 3/8

(1) All comparisons are with the same period last year unless specifically stated.
(2) Non-GAAP Financial Measures:
 
Operating Income or Income excluding net realized gains (losses), net of tax is a common performance measurement for insurance companies. We believe this presentation enhances the understanding of our results of operations by highlighting the underlying profitability of our insurance business. We exclude net realized gains (losses) and net realized gains (losses) included in Other income (expense) related to partially-owned entities because the amounts of these gains (losses) do not relate to their respective operations.
 
Underwriting income is calculated by subtracting losses and loss expenses, policy benefits, policy acquisition costs and administrative expenses from net premiums earned. We use underwriting income and operating ratios to monitor the results of our operations without the impact of certain factors, including net investment income, other income (expense), interest and income tax expense and net realized gains (losses). Life underwriting income includes net investment income. We believe the use of these measures enhances the understanding of our results of operations by highlighting the underlying profitability of our insurance business.
See reconciliation of Non-GAAP Financial Measures on page 27 in the financial supplement. These measures should not be viewed as a substitute for net income determined in accordance with generally accepted accounting principles (GAAP).
(3) Calculated using income excluding net realized gains (losses) divided by average shareholders’ equity for the period excluding unrealized gains (losses) on investments and the deferred tax component included in shareholders’ equity. To annualize a quarterly rate, multiply by four.
(4) Book value per common share is shareholders’ equity divided by the shares outstanding. Tangible book value per common share is shareholders’ equity less goodwill and other intangible assets divided by the shares outstanding.
NM – not meaningful comparison
 
Page 4/8

Cautionary Statement Regarding Forward-Looking Statements :
 
Forward-looking statements made in this press release, such as those related to company performance and guidance, recent corporate developments and acquisitions, our products and product mix, economic outlook and insurance market conditions, reflect our current views with respect to future events and financial performance and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements involve risks and uncertainties, which may cause actual results to differ materially from those set forth in these statements. For example, our forward-looking statements could be affected by competition, pricing and policy term trends, the levels of new and renewal business achieved, the frequency of unpredictable catastrophic events, actual loss experience, uncertainties in the reserving or settlement process, integration activities and performance of acquired companies, new theories of liability, judicial, legislative, regulatory and other governmental developments, litigation tactics and developments, investigation developments and actual settlement terms, the amount and timing of reinsurance recoverable, credit developments among reinsurers, rating agency action, possible terrorism or the outbreak and effects of war, and economic, political, regulatory, insurance and reinsurance business conditions, as well as management’s response to these factors, and other factors identified in our 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. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
 
(tables to follow)
 
Page 5/8

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

 
									
 	  	June 30
2011	 	  	December 31
2010	 	
Assets	  				  				
Investments	  	$	55,189	 	  	$	51,407	 	
Cash	  	 	833	 	  	 	772	 	
Insurance and reinsurance balances receivable	  	 	4,923	 	  	 	4,233	 	
Reinsurance recoverable on losses and loss expenses	  	 	13,375	 	  	 	12,871	 	
Other assets	  	 	14,934	 	  	 	14,072	 	
	  	 	 	 	  	 	 	 	
Total assets	  	$	89,254	 	  	$	83,355	 	

Liabilities	  				  				
Unpaid losses and loss expenses	  	$	38,951	 	  	$	37,391	 	
Unearned premiums	  	 	6,913	 	  	 	6,330	 	
Other liabilities	  	 	19,277	 	  	 	16,660	 	
	  	 	 	 	  	 	 	 	
Total liabilities	  	 	65,141	 	  	 	60,381	 	

Shareholders’ equity	  				  				
Total shareholders’ equity	  	 	24,113	 	  	 	22,974	 	
	  	 	 	 	  	 	 	 	
Total liabilities and shareholders’ equity	  	$	89,254	 	  	$	83,355	 	

Book value per common share (4) 	  	$	71.36	 	  	$	68.59	 	

 
Page 6/8

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

 
																	
 	  	Three Months Ended
June 30	 	 	Six Months Ended
June 30	 	
 	  	2011	 	 	2010	 	 	2011	 	 	2010	 	
Gross premiums written	  	$	5,423	 	 	$	5,154	 	 	$	10,067	 	 	$	9,944	 	
Net premiums written	  	 	3,953	 	 	 	3,420	 	 	 	7,399	 	 	 	6,991	 	
Net premiums earned	  	 	3,757	 	 	 	3,233	 	 	 	7,066	 	 	 	6,510	 	
					
Losses and loss expenses	  	 	2,226	 	 	 	1,800	 	 	 	4,489	 	 	 	3,721	 	
Policy benefits	  	 	108	 	 	 	87	 	 	 	199	 	 	 	174	 	
Policy acquisition costs	  	 	604	 	 	 	536	 	 	 	1,159	 	 	 	1,090	 	
Administrative expenses	  	 	515	 	 	 	463	 	 	 	1,009	 	 	 	923	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Underwriting income (2)	  	 	304	 	 	 	347	 	 	 	210	 	 	 	602	 	
					
Net investment income	  	 	569	 	 	 	518	 	 	 	1,113	 	 	 	1,022	 	
Net realized gains (losses)	  	 	(73	) 	 	 	9	 	 	 	(118	) 	 	 	177	 	
Interest expense	  	 	62	 	 	 	52	 	 	 	125	 	 	 	104	 	
Other income (expense)	  	 	(9	) 	 	 	(3	) 	 	 	5	 	 	 	1	 	
Income tax expense	  	 	122	 	 	 	142	 	 	 	219	 	 	 	266	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income available to holders of common shares	  	$	607	 	 	$	677	 	 	$	866	 	 	$	1,432	 	

Diluted earnings per share:	  				 				 				 				
Income excluding net realized gains (losses) (2)	  	$	2.01	 	 	$	2.01	 	 	$	2.80	 	 	$	3.72	 	
Net income	  	$	1.77	 	 	$	1.98	 	 	$	2.54	 	 	$	4.21	 	
					
Weighted average diluted shares outstanding	  	 	341.7	 	 	 	341.2	 	 	 	340.6	 	 	 	340.4	 	
					
Loss and loss expense ratio	  	 	62.9	% 	 	 	58.8	% 	 	 	67.8	% 	 	 	60.3	% 	
Policy acquisition cost ratio	  	 	16.3	% 	 	 	16.5	% 	 	 	16.6	% 	 	 	16.8	% 	
Administrative expense ratio	  	 	13.4	% 	 	 	14.4	% 	 	 	14.0	% 	 	 	14.1	% 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Combined ratio	  	 	92.6	% 	 	 	89.7	% 	 	 	98.4	% 	 	 	91.2	% 	

 
 
Page 7/8

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

 
																	
 	  	Three Months Ended
June 30	 	 	Six Months Ended
June 30	 	
 	  	2011	 	 	2010	 	 	2011	 	 	2010	 	
Gross Premiums Written	  				 				 				 				
					
Insurance - North American	  	$	2,714	 	 	$	2,649	 	 	$	4,672	 	 	$	4,779	 	
Insurance - Overseas General	  	 	1,937	 	 	 	1,787	 	 	 	3,877	 	 	 	3,658	 	
Global Reinsurance	  	 	298	 	 	 	320	 	 	 	628	 	 	 	719	 	
Life	  	 	474	 	 	 	398	 	 	 	890	 	 	 	788	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total	  	$	5,423	 	 	$	5,154	 	 	$	10,067	 	 	$	9,944	 	

Net Premiums Written	  				 				 				 				
					
Insurance - North American	  	$	1,735	 	 	$	1,438	 	 	$	3,020	 	 	$	2,833	 	
Insurance - Overseas General	  	 	1,477	 	 	 	1,302	 	 	 	2,914	 	 	 	2,722	 	
Global Reinsurance	  	 	282	 	 	 	289	 	 	 	597	 	 	 	660	 	
Life	  	 	459	 	 	 	391	 	 	 	868	 	 	 	776	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total	  	$	3,953	 	 	$	3,420	 	 	$	7,399	 	 	$	6,991	 	

Net Premiums Earned	  				 				 				 				
					
Insurance - North American	  	$	1,604	 	 	$	1,326	 	 	$	2,950	 	 	$	2,696	 	
Insurance - Overseas General	  	 	1,447	 	 	 	1,263	 	 	 	2,751	 	 	 	2,514	 	
Global Reinsurance	  	 	254	 	 	 	256	 	 	 	514	 	 	 	532	 	
Life	  	 	452	 	 	 	388	 	 	 	851	 	 	 	768	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total	  	$	3,757	 	 	$	3,233	 	 	$	7,066	 	 	$	6,510	 	

Income Excluding Net Realized Gains (Losses) (2) 	  				 				 				 				
					
Insurance - North American	  	$	284	 	 	$	313	 	 	$	547	 	 	$	622	 	
Insurance - Overseas General	  	 	225	 	 	 	186	 	 	 	236	 	 	 	342	 	
Global Reinsurance	  	 	144	 	 	 	155	 	 	 	131	 	 	 	273	 	
Life	  	 	95	 	 	 	78	 	 	 	170	 	 	 	150	 	
Corporate	  	 	(62	) 	 	 	(44	) 	 	 	(130	) 	 	 	(120	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total	  	$	686	 	 	$	688	 	 	$	954	 	 	$	1,267	 	

 
 
Page 8/8

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

							
	  	ACE Limited
Financial Supplement Table of Contents	 		

 	  	 	  	Page	 	
I.         	  	Financial Highlights	  				
	  	- Consolidated Financial Highlights	  	 	1	  	
			
II.	  	Consolidated Results	  				
	  	- Consolidated Results - Consecutive Quarters	  	 	2	  	
	  	- Summary Consolidated Balance Sheets	  	 	3	  	
	  	- Consolidated Premiums and Income Excluding Net Realized Gains (Losses) by Line of Business	  	 	4 - 5	  	
	  	- Consolidating Statement of Operations	  	 	6 - 7	  	
	  	- Catastrophe Losses	  	 	8	  	
			
III.	  	Segment Results	  				
	  	- Insurance - North American	  	 	9	  	
	  	- Insurance - Overseas General	  	 	10	  	
	  	- Global Reinsurance	  	 	11	  	
	  	- Life	  	 	12	  	
			
IV.	  	Balance Sheet Details	  				
	  	- Loss Reserve Rollforward	  	 	13	  	
	  	- Reinsurance Recoverable Analysis	  	 	14	  	
	  	- Investment Portfolio	  	 	15 - 22	  	
	  	- Net Realized and Unrealized Gains (Losses)	  	 	23	  	
	  	- Capital Structure	  	 	24 - 25	  	
	  	- Computation of Basic and Diluted Earnings Per Share	  	 	26	  	
			
V.	  	Other Disclosures	  				
	  	- Non-GAAP Financial Measures	  	 	27	  	
	  	- Book Value and Book Value per Common Share	  	 	28	  	
	  	- Comprehensive Income	  	 	29	  	
	  	- Glossary	  	 	30	  	

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

 	 	 	 	 	% Change	 	 	 	 	 	% Change	 	 	 	 	 	 	 	 	% Change	 	 	 	 	 	% Change	 	
 	 	Three months ended June 30	 	 	2Q-11 vs.	 	 	Constant $	 	 	2Q-11 vs.	 	 	Six months ended June 30	 	 	YTD-11 vs.	 	 	Constant $	 	 	YTD-11 vs.	 	
 	 	2011	 	 	2010	 	 	2Q-10	 	 	2010 (2)	 	 	2Q-10 (2)	 	 	2011	 	 	2010	 	 	YTD-10	 	 	2010 (2)	 	 	YTD-10 (2)	 	
											
Gross premiums written	 	$	5,423	  	 	$	5,154	  	 	 	5	% 	 	$	5,318	  	 	 	2	% 	 	$	10,067	  	 	$	9,944	  	 	 	1	% 	 	$	10,116	  	 	 	0	% 	
											
Net premiums written	 	$	3,953	  	 	$	3,420	  	 	 	16	% 	 	$	3,544	  	 	 	12	% 	 	$	7,399	  	 	$	6,991	  	 	 	6	% 	 	$	7,121	  	 	 	4	% 	
											
Net premiums earned	 	$	3,757	  	 	$	3,233	  	 	 	16	% 	 	$	3,355	  	 	 	12	% 	 	$	7,066	  	 	$	6,510	  	 	 	9	% 	 	$	6,662	  	 	 	6	% 	
											
Net investment income	 	$	569	  	 	$	518	  	 	 	10	% 	 				 				 	$	1,113	  	 	$	1,022	  	 	 	9	% 	 				 				
											
Net income	 	$	607	  	 	$	677	  	 	 	-10	% 	 				 				 	$	866	  	 	$	1,432	  	 	 	-40	% 	 				 				
											
Income excluding net realized gains (losses) (1)	 	$	686	  	 	$	688	  	 	 	0	% 	 				 				 	$	954	  	 	$	1,267	  	 	 	-25	% 	 				 				
											
Comprehensive income	 	$	814	  	 	$	845	  	 	 	-4	% 	 				 				 	$	1,261	  	 	$	1,903	  	 	 	-34	% 	 				 				
											
Operating cash flow (3)	 	$	1,060	  	 	$	868	  	 	 	22	% 	 				 				 	$	2,063	  	 	$	1,691	  	 	 	22	% 	 				 				
											
P&C combined ratio	 				 				 				 				 				 				 				 				 				 				
Loss and loss expense ratio	 	 	62.9	% 	 	 	58.8	% 	 				 				 				 	 	67.8	% 	 	 	60.3	% 	 				 				 				
Underwriting and administrative expense ratio	 	 	29.7	% 	 	 	30.9	% 	 				 				 				 	 	30.6	% 	 	 	30.9	% 	 				 				 				
	 	 	 	 	 	 	 	 	 				 				 				 	 	 	 	 	 	 	 	 				 				 				
Combined ratio	 	 	92.6	% 	 	 	89.7	% 	 				 				 				 	 	98.4	% 	 	 	91.2	% 	 				 				 				
											
Annualized ROE*	 	 	12.3	% 	 	 	13.8	% 	 				 				 				 	 	8.7	% 	 	 	12.9	% 	 				 				 				
											
Annualized ROE on net income	 	 	10.2	% 	 	 	12.9	% 	 				 				 				 	 	7.4	% 	 	 	13.9	% 	 				 				 				
											
Effective tax rate on income excluding net realized gains (losses)	 	 	14.3	% 	 	 	14.7	% 	 				 				 				 	 	18.3	% 	 	 	16.0	% 	 				 				 				
											
Diluted earnings per share	 				 				 				 				 				 				 				 				 				 				
Income excluding net realized gains (losses) (1)	 	$	2.01	  	 	$	2.01	  	 	 	0	% 	 				 				 	$	2.80	  	 	$	3.72	  	 	 	-25	% 	 				 				
Net income	 	$	1.77	  	 	$	1.98	  	 	 	-11	% 	 				 				 	$	2.54	  	 	$	4.21	  	 	 	-40	% 	 				 				
											
Book value per common share	 				 				 				 				 				 	$	71.36	  	 	$	63.20	  	 	 	13	% 	 				 				
Tangible book value per common share	 				 				 				 				 				 	$	56.98	  	 	$	51.88	  	 	 	10	% 	 				 				
Weighted average basic common shares outstanding	 	 	338.9	  	 	 	340.0	  	 				 				 				 	 	338.0	  	 	 	339.2	  	 				 				 				
Weighted average diluted common shares outstanding	 	 	341.7	  	 	 	341.2	  	 				 				 				 	 	340.6	  	 	 	340.4	  	 				 				 				
Debt/total capitalization	 	 	16.3	% 	 	 	13.2	% 	 				 				 				 	 	16.3	% 	 	 	13.2	% 	 				 				 				
 
(1)	See Non-GAAP Financial Measures.	
 
(2)	Prior periods on a constant dollar basis.	
 
(3)	Cash flow from operations in the second quarter of 2011 includes $312 million of cash collateral related to a one-off transaction.	
 
*	Calculated using income excluding net realized gains (losses) divided by average shareholders’ equity for the period excluding unrealized gains (losses) on investments and the deferred tax component included in shareholders’ equity. To annualize a quarterly rate, multiply by four.	

Financial Highlights	  	Page 1	

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

 	  	2Q-11	 	 	1Q-11	 	 	4Q-10	 	 	3Q-10	 	 	2Q-10	 	 	YTD
2011	 	 	YTD
2010	 	 	Full Year
2010	 	
Consolidated Results Excluding Life Segment	  				 				 				 				 				 				 				 				
Gross premiums written	  	$	4,949	  	 	$	4,228	  	 	$	4,152	  	 	$	4,624	  	 	$	4,756	  	 	$	9,177	  	 	$	9,156	  	 	$	17,932	  	
Net premiums written	  	 	3,494	  	 	 	3,037	  	 	 	3,015	  	 	 	2,922	  	 	 	3,029	  	 	 	6,531	  	 	 	6,215	  	 	 	12,152	  	
Net premiums earned	  	 	3,305	  	 	 	2,910	  	 	 	3,184	  	 	 	3,036	  	 	 	2,845	  	 	 	6,215	  	 	 	5,742	  	 	 	11,962	  	
Losses and loss expenses	  	 	2,079	  	 	 	2,135	  	 	 	1,854	  	 	 	1,768	  	 	 	1,671	  	 	 	4,214	  	 	 	3,461	  	 	 	7,083	  	
Policy benefits	  	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	1	  	 	 	—  	  	 	 	4	  	 	 	4	  	
Policy acquisition costs	  	 	538	  	 	 	494	  	 	 	575	  	 	 	542	  	 	 	470	  	 	 	1,032	  	 	 	963	  	 	 	2,080	  	
Administrative expenses	  	 	443	  	 	 	426	  	 	 	445	  	 	 	374	  	 	 	409	  	 	 	869	  	 	 	811	  	 	 	1,630	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Underwriting income (loss) excluding Life segment	  	 	245	  	 	 	(145	) 	 	 	310	  	 	 	352	  	 	 	294	  	 	 	100	  	 	 	503	  	 	 	1,165	  	
Life underwriting income excluding investment income	  	 	59	  	 	 	51	  	 	 	59	  	 	 	50	  	 	 	53	  	 	 	110	  	 	 	99	  	 	 	208	  	
Net investment income	  	 	569	  	 	 	544	  	 	 	532	  	 	 	516	  	 	 	518	  	 	 	1,113	  	 	 	1,022	  	 	 	2,070	  	
Net realized gains (losses)	  	 	(73	) 	 	 	(45	) 	 	 	305	  	 	 	(50	) 	 	 	9	  	 	 	(118	) 	 	 	177	  	 	 	432	  	
Interest expense	  	 	62	  	 	 	63	  	 	 	62	  	 	 	58	  	 	 	52	  	 	 	125	  	 	 	104	  	 	 	224	  	
Other income (expense)	  	 	(9	) 	 	 	14	  	 	 	(10	) 	 	 	25	  	 	 	(3	) 	 	 	5	  	 	 	1	  	 	 	16	  	
Income tax expense	  	 	122	  	 	 	97	  	 	 	133	  	 	 	160	  	 	 	142	  	 	 	219	  	 	 	266	  	 	 	559	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income	  	 	607	  	 	 	259	  	 	 	1,001	  	 	 	675	  	 	 	677	  	 	 	866	  	 	 	1,432	  	 	 	3,108	  	
Net realized gains (losses)	  	 	(73	) 	 	 	(45	) 	 	 	305	  	 	 	(50	) 	 	 	9	  	 	 	(118	) 	 	 	177	  	 	 	432	  	
Net realized gains (losses) in other income (expense) (1)	  	 	2	  	 	 	34	  	 	 	17	  	 	 	39	  	 	 	3	  	 	 	36	  	 	 	13	  	 	 	69	  	
Tax expense (benefit) on net realized gains (losses)	  	 	8	  	 	 	(2	) 	 	 	23	  	 	 	2	  	 	 	23	  	 	 	6	  	 	 	25	  	 	 	50	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income excluding net realized gains (losses) (2)	  	$	686	  	 	$	268	  	 	$	702	  	 	$	688	  	 	$	688	  	 	$	954	  	 	$	1,267	  	 	$	2,657	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
% Change versus prior year period (3) 	  				 				 				 				 				 				 				 				
Net premiums written	  	 	15	% 	 	 	-5	% 	 	 	3	% 	 	 	5	% 	 	 	-1	% 	 	 	5	% 	 	 	1	% 	 	 	3	% 	
Net premiums earned	  	 	16	% 	 	 	0	% 	 	 	6	% 	 	 	0	% 	 	 	-2	% 	 	 	8	% 	 	 	0	% 	 	 	1	% 	
Net premiums written constant $	  	 	11	% 	 	 	-5	% 	 	 	4	% 	 	 	5	% 	 	 	-3	% 	 	 	5	% 	 	 	-2	% 	 	 	1	% 	
Net premiums earned constant $	  	 	12	% 	 	 	0	% 	 	 	6	% 	 	 	1	% 	 	 	-4	% 	 	 	8	% 	 	 	-3	% 	 	 	0	% 	
									
Other ratios	  				 				 				 				 				 				 				 				
Net premiums written/gross premiums written	  	 	71	% 	 	 	72	% 	 	 	73	% 	 	 	63	% 	 	 	64	% 	 	 	71	% 	 	 	68	% 	 	 	68	% 	
Effective tax rate on income excluding net realized gains (losses)	  	 	14.3	% 	 	 	27.0	% 	 	 	13.5	% 	 	 	18.7	% 	 	 	14.7	% 	 	 	18.3	% 	 	 	16.0	% 	 	 	16.1	% 	
									
P&C combined ratio (3) 	  				 				 				 				 				 				 				 				
Loss and loss expense ratio	  	 	62.9	% 	 	 	73.4	% 	 	 	58.2	% 	 	 	58.2	% 	 	 	58.8	% 	 	 	67.8	% 	 	 	60.3	% 	 	 	59.2	% 	
Policy acquisition cost ratio	  	 	16.3	% 	 	 	16.9	% 	 	 	18.1	% 	 	 	17.9	% 	 	 	16.5	% 	 	 	16.6	% 	 	 	16.8	% 	 	 	17.4	% 	
Administrative expense ratio	  	 	13.4	% 	 	 	14.7	% 	 	 	14.0	% 	 	 	12.3	% 	 	 	14.4	% 	 	 	14.0	% 	 	 	14.1	% 	 	 	13.6	% 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Combined ratio	  	 	92.6	% 	 	 	105.0	% 	 	 	90.3	% 	 	 	88.4	% 	 	 	89.7	% 	 	 	98.4	% 	 	 	91.2	% 	 	 	90.2	% 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
P&C expense ratio	  	 	29.7	% 	 	 	31.6	% 	 	 	32.1	% 	 	 	30.2	% 	 	 	30.9	% 	 	 	30.6	% 	 	 	30.9	% 	 	 	31.0	% 	
P&C expense ratio excluding A&H	  	 	25.1	% 	 	 	27.3	% 	 	 	28.2	% 	 	 	25.7	% 	 	 	26.5	% 	 	 	26.6	% 	 	 	26.6	% 	 	 	26.8	% 	
									
Large losses and other items (before tax) (3) 	  				 				 				 				 				 				 				 				
Reinstatement premiums (expensed) collected	  	$	8	  	 	$	(74	) 	 	$	1	  	 	$	(6	) 	 	$	(5	) 	 	$	(66	) 	 	$	(30	) 	 	$	(35	) 	
Catastrophe losses	  	$	142	  	 	$	415	  	 	$	51	  	 	$	91	  	 	$	76	  	 	$	557	  	 	$	224	  	 	$	366	  	
Prior period development - unfavorable (favorable)	  	$	(146	) 	 	$	(93	) 	 	$	(57	) 	 	$	(201	) 	 	$	(149	) 	 	$	(239	) 	 	$	(245	) 	 	$	(503	) 	
Loss and loss expense ratio excluding catastrophe losses and prior period development	  	 	63.2	% 	 	 	60.8	% 	 	 	58.5	% 	 	 	61.7	% 	 	 	61.2	% 	 	 	62.0	% 	 	 	61.1	% 	 	 	60.6	% 	
 
(1)	Net realized investment and derivative losses related to unconsolidated entities.	
 
(2)	See Non-GAAP Financial Measures.	
 
(3)	Presented excluding the Life segment to allow for comparison and analysis with earnings guidance. This is a non-GAAP measure.	

Consolidated Results	  	Page 2	

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

 	  	June 30
2011	 	 	March 31
2011	 	 	December 31
2010	 	
 	  	(Unaudited)	 	 	(Unaudited)	 	 	(Audited)	 	
Assets	  				 				 				
Fixed maturities available for sale, at fair value	  	$	41,038	  	 	$	38,718	  	 	$	37,539	  	
Fixed maturities held to maturity, at amortized cost	  	 	9,033	  	 	 	9,270	  	 	 	9,501	  	
Equity securities, at fair value	  	 	582	  	 	 	537	  	 	 	692	  	
Short-term investments, at fair value	  	 	2,380	  	 	 	2,375	  	 	 	1,983	  	
Other investments	  	 	2,156	  	 	 	1,839	  	 	 	1,692	  	
	  	 	 	 	 	 	 	 	 	 	 	 	
Total investments	  	 	55,189	  	 	 	52,739	  	 	 	51,407	  	
Cash	  	 	833	  	 	 	1,115	  	 	 	772	  	
Securities lending collateral	  	 	1,593	  	 	 	1,326	  	 	 	1,495	  	
Insurance and reinsurance balances receivable	  	 	4,923	  	 	 	4,102	  	 	 	4,233	  	
Reinsurance recoverable on losses and loss expenses	  	 	13,375	  	 	 	13,749	  	 	 	12,871	  	
Deferred policy acquisition costs	  	 	1,821	  	 	 	1,725	  	 	 	1,641	  	
Value of business acquired	  	 	796	  	 	 	745	  	 	 	634	  	
Prepaid reinsurance premiums	  	 	1,711	  	 	 	1,540	  	 	 	1,511	  	
Goodwill and other intangible assets	  	 	4,858	  	 	 	4,729	  	 	 	4,664	  	
Deferred tax assets	  	 	586	  	 	 	703	  	 	 	769	  	
Investments in partially owned insurance companies	  	 	353	  	 	 	348	  	 	 	360	  	
Other assets	  	 	3,216	  	 	 	3,399	  	 	 	2,998	  	
	  	 	 	 	 	 	 	 	 	 	 	 	
Total assets	  	$	89,254	  	 	$	86,220	  	 	$	83,355	  	

Liabilities	  				 				 				
Unpaid losses and loss expenses	  	$	38,951	  	 	$	38,843	  	 	$	37,391	  	
Unearned premiums	  	 	6,913	  	 	 	6,533	  	 	 	6,330	  	
Future policy benefits	  	 	4,384	  	 	 	3,480	  	 	 	3,106	  	
Insurance and reinsurance balances payable	  	 	3,785	  	 	 	3,277	  	 	 	3,282	  	
Securities lending payable	  	 	1,610	  	 	 	1,346	  	 	 	1,518	  	
Payable for securities purchased	  	 	418	  	 	 	613	  	 	 	292	  	
Accounts payable, accrued expenses, and other liabilities	  	 	4,011	  	 	 	3,684	  	 	 	3,495	  	
Short-term debt	  	 	1,400	  	 	 	1,401	  	 	 	1,300	  	
Long-term debt	  	 	3,360	  	 	 	3,358	  	 	 	3,358	  	
Trust preferred securities	  	 	309	  	 	 	309	  	 	 	309	  	
	  	 	 	 	 	 	 	 	 	 	 	 	
Total liabilities	  	 	65,141	  	 	 	62,844	  	 	 	60,381	  	
				
Shareholders’ equity	  				 				 				
Total shareholders’ equity, excl. AOCI	  	 	22,124	  	 	 	21,594	  	 	 	21,380	  	
Accumulated other comprehensive income (AOCI)	  	 	1,989	  	 	 	1,782	  	 	 	1,594	  	
	  	 	 	 	 	 	 	 	 	 	 	 	
Total shareholders’ equity	  	 	24,113	  	 	 	23,376	  	 	 	22,974	  	
	  	 	 	 	 	 	 	 	 	 	 	 	
Total liabilities and shareholders’ equity	  	$	89,254	  	 	$	86,220	  	 	$	83,355	  	
	  	 	 	 	 	 	 	 	 	 	 	 	
Book value per common share (1) 	  	$	71.36	  	 	$	69.33	  	 	$	68.59	  	
% change over prior quarter	  	 	3	% 	 	 	1	% 	 	 	2	% 	
Tangible book value per common share (1) 	  	$	56.98	  	 	$	55.31	  	 	$	54.66	  	
% change over prior quarter	  	 	3	% 	 	 	1	% 	 	 	-2	% 	
 
(1)	See Non-GAAP Financial Measures.	

Consol Bal Sheet	  	Page 3	

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

   	 	2Q-11	 	 	% of
Total
Consolidated	 	 	2Q-10	 	 	% of
Total
Consolidated	 	 	% Change
2Q-11 vs.
2Q-10	 	 	YTD
2011	 	 	% of
Total
Consolidated	 	 	YTD
2010	 	 	% of
Total
Consolidated	 	 	% Change
YTD-11  vs.
YTD-10	 	
Net premiums written	 				 				 				 				 				 				 				 				 				 				
Property and all other	 	$	1,596	  	 	 	41	% 	 	$	1,064	  	 	 	31	% 	 	 	50	% 	 	$	2,683	  	 	 	37	% 	 	$	2,146	  	 	 	31	% 	 	 	25	% 	
Casualty	 	 	1,240	  	 	 	31	% 	 	 	1,388	  	 	 	41	% 	 	 	-11	% 	 	 	2,547	  	 	 	34	% 	 	 	2,904	  	 	 	41	% 	 	 	-12	% 	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Subtotal	 	 	2,836	  	 	 	72	% 	 	 	2,452	  	 	 	72	% 	 	 	16	% 	 	 	5,230	  	 	 	71	% 	 	 	5,050	  	 	 	72	% 	 	 	4	% 	
Personal accident (A&H) (1)	 	 	907	  	 	 	23	% 	 	 	833	  	 	 	24	% 	 	 	9	% 	 	 	1,798	  	 	 	24	% 	 	 	1,678	  	 	 	24	% 	 	 	7	% 	
Life (2)	 	 	210	  	 	 	5	% 	 	 	135	  	 	 	4	% 	 	 	56	% 	 	 	371	  	 	 	5	% 	 	 	263	  	 	 	4	% 	 	 	41	% 	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total consolidated	 	$	3,953	  	 	 	100	% 	 	$	3,420	  	 	 	100	% 	 	 	16	% 	 	$	7,399	  	 	 	100	% 	 	$	6,991	  	 	 	100	% 	 	 	6	% 	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Add: Life deposits on investment contracts	 	 	94	  	 				 	 	58	  	 				 	 	62	% 	 	 	211	  	 				 	 	113	  	 				 	 	87	% 	
	 	 	 	 	 				 	 	 	 	 				 	 	 	 	 	 	 	 	 				 	 	 	 	 				 	 	 	 	
Non-GAAP total net premium written	 	$	4,047	  	 				 	$	3,478	  	 				 	 	16	% 	 	$	7,610	  	 				 	$	7,104	  	 				 	 	7	% 	
	 	 	 	 	 				 	 	 	 	 				 	 	 	 	 	 	 	 	 				 	 	 	 	 				 	 	 	 	
Net premiums earned	 				 				 				 				 				 				 				 				 				 				
Property and all other	 	$	1,305	  	 	 	35	% 	 	$	899	  	 	 	28	% 	 	 	45	% 	 	$	2,226	  	 	 	32	% 	 	$	1,815	  	 	 	28	% 	 	 	23	% 	
Casualty	 	 	1,352	  	 	 	36	% 	 	 	1,380	  	 	 	43	% 	 	 	-2	% 	 	 	2,732	  	 	 	38	% 	 	 	2,807	  	 	 	43	% 	 	 	-3	% 	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Subtotal	 	 	2,657	  	 	 	71	% 	 	 	2,279	  	 	 	71	% 	 	 	17	% 	 	 	4,958	  	 	 	70	% 	 	 	4,622	  	 	 	71	% 	 	 	7	% 	
Personal accident (A&H) (1)	 	 	901	  	 	 	24	% 	 	 	827	  	 	 	26	% 	 	 	9	% 	 	 	1,756	  	 	 	25	% 	 	 	1,637	  	 	 	25	% 	 	 	7	% 	
Life (2)	 	 	199	  	 	 	5	% 	 	 	127	  	 	 	3	% 	 	 	57	% 	 	 	352	  	 	 	5	% 	 	 	251	  	 	 	4	% 	 	 	40	% 	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total consolidated	 	$	3,757	  	 	 	100	% 	 	$	3,233	  	 	 	100	% 	 	 	16	% 	 	$	7,066	  	 	 	100	% 	 	$	6,510	  	 	 	100	% 	 	 	9	% 	

Income excluding net realized gains (losses)	 				 				 				 				 				 				 				 				 				 				
Property, casualty, and all other	 	$	513	  	 	 	75	% 	 	$	551	  	 	 	80	% 	 	 	-7	% 	 	$	630	  	 	 	66	% 	 	$	994	  	 	 	78	% 	 	 	-37	% 	
Personal accident (A&H) (1)	 	 	124	  	 	 	18	% 	 	 	100	  	 	 	15	% 	 	 	24	% 	 	 	237	  	 	 	25	% 	 	 	201	  	 	 	16	% 	 	 	18	% 	
Life (2)	 	 	49	  	 	 	7	% 	 	 	37	  	 	 	5	% 	 	 	32	% 	 	 	87	  	 	 	9	% 	 	 	72	  	 	 	6	% 	 	 	21	% 	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total consolidated	 	$	686	  	 	 	100	% 	 	$	688	  	 	 	100	% 	 	 	0	% 	 	$	954	  	 	 	100	% 	 	$	1,267	  	 	 	100	% 	 	 	-25	% 	

(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

   	  	2Q-11	 	  	Constant $
2Q-10 (3)	 	  	Constant $
% Change
2Q-11 vs.
2Q-10 (3)	 	 	YTD
2011	 	  	Constant $
YTD 2010  (3)	 	  	Constant $
% Change
YTD-11 vs.
YTD-10  (3)	 	
Net premiums written	  				  				  				 				  				  				
Property, casualty, and all other	  	$	2,836	  	  	$	2,518	  	  	 	13	% 	 	$	5,230	  	  	$	5,107	  	  	 	2	% 	
Personal accident (A&H) (1)	  	 	907	  	  	 	888	  	  	 	2	% 	 	 	1,798	  	  	 	1,746	  	  	 	3	% 	
Life (2)	  	 	210	  	  	 	138	  	  	 	52	% 	 	 	371	  	  	 	268	  	  	 	38	% 	
	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	
Total consolidated	  	$	3,953	  	  	$	3,544	  	  	 	12	% 	 	$	7,399	  	  	$	7,121	  	  	 	4	% 	
	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	
Net premiums earned	  				  				  				 				  				  				
Property, casualty, and all other	  	$	2,657	  	  	$	2,344	  	  	 	13	% 	 	$	4,958	  	  	$	4,699	  	  	 	6	% 	
Personal accident (A&H) (1)	  	 	901	  	  	 	881	  	  	 	2	% 	 	 	1,756	  	  	 	1,707	  	  	 	3	% 	
Life (2)	  	 	199	  	  	 	130	  	  	 	53	% 	 	 	352	  	  	 	256	  	  	 	38	% 	
	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	
Total consolidated	  	$	3,757	  	  	$	3,355	  	  	 	12	% 	 	$	7,066	  	  	$	6,662	  	  	 	6	% 	

Income excluding net realized gains (losses)	  				  				  				 				  				  				
Property, casualty, and all other	  	$	513	  	  	$	563	  	  	 	-9	% 	 	$	630	  	  	$	1,000	  	  	 	-37	% 	
Personal accident (A&H) (1)	  	 	124	  	  	 	106	  	  	 	17	% 	 	 	237	  	  	 	208	  	  	 	14	% 	
Life (2)	  	 	49	  	  	 	37	  	  	 	32	% 	 	 	87	  	  	 	72	  	  	 	21	% 	
	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	
Total consolidated	  	$	686	  	  	$	706	  	  	 	-3	% 	 	$	954	  	  	$	1,280	  	  	 	-25	% 	

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

Line of Business 2	  	Page 5	

					
	  	ACE Limited
Consolidating Statement of Operations
Three months ended June 30, 2011 and 2010
(in millions of U.S. dollars)
(Unaudited)	  	 	

 	  	Insurance -
North
American	 	 	Insurance -
Overseas
General	 	 	Global
Reinsurance	 	 	Corporate
& Other	 	 	Consolidated
Excluding
Life Segment	 	 	Life	 	 	ACE
Consolidated	 	
June 30, 2011	  				 				 				 				 				 				 				
Gross premiums written	  	$	2,714	  	 	$	1,937	  	 	$	298	  	 	$	—  	  	 	$	4,949	  	 	$	474	  	 	$	5,423	  	
Net premiums written	  	 	1,735	  	 	 	1,477	  	 	 	282	  	 	 	—  	  	 	 	3,494	  	 	 	459	  	 	 	3,953	  	
Net premiums earned	  	 	1,604	  	 	 	1,447	  	 	 	254	  	 	 	—  	  	 	 	3,305	  	 	 	452	  	 	 	3,757	  	
Losses and loss expenses	  	 	1,233	  	 	 	733	  	 	 	112	  	 	 	1	  	 	 	2,079	  	 	 	147	  	 	 	2,226	  	
Policy benefits	  	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	108	  	 	 	108	  	
Policy acquisition costs	  	 	143	  	 	 	348	  	 	 	47	  	 	 	—  	  	 	 	538	  	 	 	66	  	 	 	604	  	
Administrative expenses	  	 	147	  	 	 	242	  	 	 	14	  	 	 	40	  	 	 	443	  	 	 	72	  	 	 	515	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Underwriting income (loss)	  	 	81	  	 	 	124	  	 	 	81	  	 	 	(41	) 	 	 	245	  	 	 	59	  	 	 	304	  	
Net investment income	  	 	300	  	 	 	138	  	 	 	71	  	 	 	1	  	 	 	510	  	 	 	59	  	 	 	569	  	
Net realized gains (losses)	  	 	21	  	 	 	(10	) 	 	 	(14	) 	 	 	(2	) 	 	 	(5	) 	 	 	(68	) 	 	 	(73	) 	
Interest expense	  	 	3	  	 	 	1	  	 	 	1	  	 	 	54	  	 	 	59	  	 	 	3	  	 	 	62	  	
Other income (expense)	  	 	(3	) 	 	 	5	  	 	 	(1	) 	 	 	(2	) 	 	 	(1	) 	 	 	(8	) 	 	 	(9	) 	
Income tax expense (benefit)	  	 	95	  	 	 	40	  	 	 	8	  	 	 	(35	) 	 	 	108	  	 	 	14	  	 	 	122	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income (loss)	  	 	301	  	 	 	216	  	 	 	128	  	 	 	(63	) 	 	 	582	  	 	 	25	  	 	 	607	  	
Net realized gains (losses)	  	 	21	  	 	 	(10	) 	 	 	(14	) 	 	 	(2	) 	 	 	(5	) 	 	 	(68	) 	 	 	(73	) 	
Net realized gains (losses) in other income (expense)	  	 	3	  	 	 	1	  	 	 	(2	) 	 	 	1	  	 	 	3	  	 	 	(1	) 	 	 	2	  	
Tax expense (benefit) on net realized gains (losses)	  	 	7	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	7	  	 	 	1	  	 	 	8	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income (loss) excluding net realized gains (losses) (1)	  	$	284	  	 	$	225	  	 	$	144	  	 	$	(62	) 	 	$	591	  	 	$	95	  	 	$	686	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
June 30, 2010	  				 				 				 				 				 				 				
Gross premiums written	  	$	2,649	  	 	$	1,787	  	 	$	320	  	 	$	—  	  	 	$	4,756	  	 	$	398	  	 	$	5,154	  	
Net premiums written	  	 	1,438	  	 	 	1,302	  	 	 	289	  	 	 	—  	  	 	 	3,029	  	 	 	391	  	 	 	3,420	  	
Net premiums earned	  	 	1,326	  	 	 	1,263	  	 	 	256	  	 	 	—  	  	 	 	2,845	  	 	 	388	  	 	 	3,233	  	
Losses and loss expenses	  	 	924	  	 	 	644	  	 	 	103	  	 	 	—  	  	 	 	1,671	  	 	 	129	  	 	 	1,800	  	
Policy benefits	  	 	—  	  	 	 	1	  	 	 	—  	  	 	 	—  	  	 	 	1	  	 	 	86	  	 	 	87	  	
Policy acquisition costs	  	 	126	  	 	 	296	  	 	 	48	  	 	 	—  	  	 	 	470	  	 	 	66	  	 	 	536	  	
Administrative expenses	  	 	147	  	 	 	207	  	 	 	15	  	 	 	40	  	 	 	409	  	 	 	54	  	 	 	463	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Underwriting income (loss)	  	 	129	  	 	 	115	  	 	 	90	  	 	 	(40	) 	 	 	294	  	 	 	53	  	 	 	347	  	
Net investment income	  	 	287	  	 	 	115	  	 	 	73	  	 	 	—  	  	 	 	475	  	 	 	43	  	 	 	518	  	
Net realized gains (losses)	  	 	85	  	 	 	48	  	 	 	28	  	 	 	3	  	 	 	164	  	 	 	(155	) 	 	 	9	  	
Interest expense	  	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	52	  	 	 	52	  	 	 	—  	  	 	 	52	  	
Other income (expense)	  	 	(4	) 	 	 	3	  	 	 	2	  	 	 	(1	) 	 	 	—  	  	 	 	(3	) 	 	 	(3	) 	
Income tax expense (benefit)	  	 	110	  	 	 	59	  	 	 	9	  	 	 	(52	) 	 	 	126	  	 	 	16	  	 	 	142	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income (loss)	  	 	387	  	 	 	222	  	 	 	184	  	 	 	(38	) 	 	 	755	  	 	 	(78	) 	 	 	677	  	
Net realized gains (losses)	  	 	85	  	 	 	48	  	 	 	28	  	 	 	3	  	 	 	164	  	 	 	(155	) 	 	 	9	  	
Net realized gains (losses) in other income (expense)	  	 	1	  	 	 	1	  	 	 	1	  	 	 	—  	  	 	 	3	  	 	 	—  	  	 	 	3	  	
Tax expense (benefit) on net realized gains (losses)	  	 	12	  	 	 	13	  	 	 	—  	  	 	 	(3	) 	 	 	22	  	 	 	1	  	 	 	23	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income (loss) excluding net realized gains (losses) (1)	  	$	313	  	 	$	186	  	 	$	155	  	 	$	(44	) 	 	$	610	  	 	$	78	  	 	$	688	  	

(1)	See Non-GAAP Financial Measures.	

Segment 2011 Qtr	  	Page 6	

					
	  	ACE Limited
Consolidating Statement of Operations
Six months ended June 30, 2011 and 2010
(in millions of U.S. dollars)
(Unaudited)	  	 	

 	  	Insurance -
North
American	 	  	Insurance -
Overseas
General	 	 	Global
Reinsurance	 	 	Corporate
& Other	 	 	Consolidated
Excluding
Life Segment	 	 	Life	 	 	ACE
Consolidated	 	
June 30, 2011	  				  				 				 				 				 				 				
Gross premiums written	  	$	4,672	  	  	$	3,877	  	 	$	628	  	 	$	—  	  	 	$	9,177	  	 	$	890	  	 	$	10,067	  	
Net premiums written	  	 	3,020	  	  	 	2,914	  	 	 	597	  	 	 	—  	  	 	 	6,531	  	 	 	868	  	 	 	7,399	  	
Net premiums earned	  	 	2,950	  	  	 	2,751	  	 	 	514	  	 	 	—  	  	 	 	6,215	  	 	 	851	  	 	 	7,066	  	
Losses and loss expenses	  	 	2,227	  	  	 	1,595	  	 	 	391	  	 	 	1	  	 	 	4,214	  	 	 	275	  	 	 	4,489	  	
Policy benefits	  	 	—  	  	  	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	199	  	 	 	199	  	
Policy acquisition costs	  	 	279	  	  	 	660	  	 	 	93	  	 	 	—  	  	 	 	1,032	  	 	 	127	  	 	 	1,159	  	
Administrative expenses	  	 	295	  	  	 	466	  	 	 	26	  	 	 	82	  	 	 	869	  	 	 	140	  	 	 	1,009	  	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Underwriting income (loss)	  	 	149	  	  	 	30	  	 	 	4	  	 	 	(83	) 	 	 	100	  	 	 	110	  	 	 	210	  	
Net investment income	  	 	595	  	  	 	269	  	 	 	143	  	 	 	1	  	 	 	1,008	  	 	 	105	  	 	 	1,113	  	
Net realized gains (losses)	  	 	10	  	  	 	(19	) 	 	 	(27	) 	 	 	(1	) 	 	 	(37	) 	 	 	(81	) 	 	 	(118	) 	
Interest expense	  	 	7	  	  	 	2	  	 	 	1	  	 	 	109	  	 	 	119	  	 	 	6	  	 	 	125	  	
Other income (expense)	  	 	13	  	  	 	7	  	 	 	5	  	 	 	(7	) 	 	 	18	  	 	 	(13	) 	 	 	5	  	
Income tax expense (benefit)	  	 	184	  	  	 	59	  	 	 	18	  	 	 	(69	) 	 	 	192	  	 	 	27	  	 	 	219	  	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income (loss)	  	 	576	  	  	 	226	  	 	 	106	  	 	 	(130	) 	 	 	778	  	 	 	88	  	 	 	866	  	
Net realized gains (losses)	  	 	10	  	  	 	(19	) 	 	 	(27	) 	 	 	(1	) 	 	 	(37	) 	 	 	(81	) 	 	 	(118	) 	
Net realized gains (losses) in other income (expense)	  	 	27	  	  	 	6	  	 	 	2	  	 	 	1	  	 	 	36	  	 	 	—  	  	 	 	36	  	
Tax expense (benefit) on net realized gains (losses)	  	 	8	  	  	 	(3	) 	 	 	—  	  	 	 	—  	  	 	 	5	  	 	 	1	  	 	 	6	  	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income (loss) excluding net realized gains (losses) (1)	  	$	547	  	  	$	236	  	 	$	131	  	 	$	(130	) 	 	$	784	  	 	$	170	  	 	$	954	  	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
June 30, 2010	  				  				 				 				 				 				 				
Gross premiums written	  	$	4,779	  	  	$	3,658	  	 	$	719	  	 	$	—  	  	 	$	9,156	  	 	$	788	  	 	$	9,944	  	
Net premiums written	  	 	2,833	  	  	 	2,722	  	 	 	660	  	 	 	—  	  	 	 	6,215	  	 	 	776	  	 	 	6,991	  	
Net premiums earned	  	 	2,696	  	  	 	2,514	  	 	 	532	  	 	 	—  	  	 	 	5,742	  	 	 	768	  	 	 	6,510	  	
Losses and loss expenses	  	 	1,862	  	  	 	1,345	  	 	 	254	  	 	 	—  	  	 	 	3,461	  	 	 	260	  	 	 	3,721	  	
Policy benefits	  	 	—  	  	  	 	4	  	 	 	—  	  	 	 	—  	  	 	 	4	  	 	 	170	  	 	 	174	  	
Policy acquisition costs	  	 	282	  	  	 	579	  	 	 	102	  	 	 	—  	  	 	 	963	  	 	 	127	  	 	 	1,090	  	
Administrative expenses	  	 	295	  	  	 	409	  	 	 	27	  	 	 	80	  	 	 	811	  	 	 	112	  	 	 	923	  	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Underwriting income (loss)	  	 	257	  	  	 	177	  	 	 	149	  	 	 	(80	) 	 	 	503	  	 	 	99	  	 	 	602	  	
Net investment income	  	 	565	  	  	 	229	  	 	 	142	  	 	 	—  	  	 	 	936	  	 	 	86	  	 	 	1,022	  	
Net realized gains (losses)	  	 	165	  	  	 	70	  	 	 	59	  	 	 	(5	) 	 	 	289	  	 	 	(112	) 	 	 	177	  	
Interest expense	  	 	—  	  	  	 	—  	  	 	 	—  	  	 	 	104	  	 	 	104	  	 	 	—  	  	 	 	104	  	
Other income (expense)	  	 	1	  	  	 	1	  	 	 	6	  	 	 	(1	) 	 	 	7	  	 	 	(6	) 	 	 	1	  	
Income tax expense (benefit)	  	 	214	  	  	 	73	  	 	 	19	  	 	 	(70	) 	 	 	236	  	 	 	30	  	 	 	266	  	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income (loss)	  	 	774	  	  	 	404	  	 	 	337	  	 	 	(120	) 	 	 	1,395	  	 	 	37	  	 	 	1,432	  	
Net realized gains (losses)	  	 	165	  	  	 	70	  	 	 	59	  	 	 	(5	) 	 	 	289	  	 	 	(112	) 	 	 	177	  	
Net realized gains (losses) in other income (expense)	  	 	1	  	  	 	6	  	 	 	5	  	 	 	—  	  	 	 	12	  	 	 	1	  	 	 	13	  	
Tax expense (benefit) on net realized gains (losses)	  	 	14	  	  	 	14	  	 	 	—  	  	 	 	(5	) 	 	 	23	  	 	 	2	  	 	 	25	  	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income (loss) excluding net realized gains (losses) (1)	  	$	622	  	  	$	342	  	 	$	273	  	 	$	(120	) 	 	$	1,117	  	 	$	150	  	 	$	1,267	  	

(1)	See Non-GAAP Financial Measures.	

Segment 2011 YTD	  	Page 7	

					
	  	ACE Limited
Segment Results - Second Quarter Catastrophe Loss Charges
(in millions of U.S. dollars)
(Unaudited)	  	 	
 
Second Quarter Catastrophe Loss Charges - 2011

Catastrophe Loss Charges	  	Insurance -
North
American	 	 	Insurance -
Overseas
General	 	 	Global
Reinsurance	 	 	Reinstatement
Premiums Expensed
(Collected)	 	 	Pre-tax
Total	 	 	After-tax
Total	 	
Net loss	  				 				 				 				 				 				
True-up of Q1 Events	  	$	(6	) 	 	$	(5	) 	 	$	(20	) 	 	$	(3	) 	 	$	(34	) 	 	$	(35	) 	
Q2 Events	  	 	116	  	 	 	15	  	 	 	42	  	 	 	(5	) 	 	 	168	  	 	 	136	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total	  	$	110	  	 	$	10	  	 	$	22	  	 	$	(8	) 	 	$	134	  	 	$	101	  	

			
Catastrophe Losses	  	Page 8	

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

 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	YTD
2011	 	 	YTD
2010	 	 	Full  Year
2010	 	
 	  	2Q-11	 	 	1Q-11	 	 	4Q-10	 	 	3Q-10	 	 	2Q-10	 	 			 			 			
Gross premiums written	  	$	2,714	  	 	$	1,958	  	 	$	2,256	  	 	$	2,759	  	 	$	2,649	  	 	$	4,672	  	 	$	4,779	  	 	$	9,794	  	
Net premiums written	  	 	1,735	  	 	 	1,285	  	 	 	1,519	  	 	 	1,445	  	 	 	1,438	  	 	 	3,020	  	 	 	2,833	  	 	 	5,797	  	
Net premiums earned	  	 	1,604	  	 	 	1,346	  	 	 	1,511	  	 	 	1,444	  	 	 	1,326	  	 	 	2,950	  	 	 	2,696	  	 	 	5,651	  	
Losses and loss expenses	  	 	1,233	  	 	 	994	  	 	 	1,030	  	 	 	1,026	  	 	 	924	  	 	 	2,227	  	 	 	1,862	  	 	 	3,918	  	
Policy acquisition costs	  	 	143	  	 	 	136	  	 	 	178	  	 	 	165	  	 	 	126	  	 	 	279	  	 	 	282	  	 	 	625	  	
Administrative expenses	  	 	147	  	 	 	148	  	 	 	154	  	 	 	112	  	 	 	147	  	 	 	295	  	 	 	295	  	 	 	561	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Underwriting income	  	 	81	  	 	 	68	  	 	 	149	  	 	 	141	  	 	 	129	  	 	 	149	  	 	 	257	  	 	 	547	  	
Net investment income	  	 	300	  	 	 	295	  	 	 	286	  	 	 	287	  	 	 	287	  	 	 	595	  	 	 	565	  	 	 	1,138	  	
Net realized gains (losses)	  	 	21	  	 	 	(11	) 	 	 	254	  	 	 	(2	) 	 	 	85	  	 	 	10	  	 	 	165	  	 	 	417	  	
Interest expense	  	 	3	  	 	 	4	  	 	 	3	  	 	 	6	  	 	 	—  	  	 	 	7	  	 	 	—  	  	 	 	9	  	
Other income (expense)	  	 	(3	) 	 	 	16	  	 	 	1	  	 	 	20	  	 	 	(4	) 	 	 	13	  	 	 	1	  	 	 	22	  	
Income tax expense	  	 	95	  	 	 	89	  	 	 	114	  	 	 	108	  	 	 	110	  	 	 	184	  	 	 	214	  	 	 	436	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income	  	 	301	  	 	 	275	  	 	 	573	  	 	 	332	  	 	 	387	  	 	 	576	  	 	 	774	  	 	 	1,679	  	
									
Net realized gains (losses)	  	 	21	  	 	 	(11	) 	 	 	254	  	 	 	(2	) 	 	 	85	  	 	 	10	  	 	 	165	  	 	 	417	  	
Net realized gains (losses) in other income (expense)	  	 	3	  	 	 	24	  	 	 	3	  	 	 	20	  	 	 	1	  	 	 	27	  	 	 	1	  	 	 	24	  	
Tax expense (benefit) on net realized gains (losses)	  	 	7	  	 	 	1	  	 	 	14	  	 	 	(2	) 	 	 	12	  	 	 	8	  	 	 	14	  	 	 	26	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income excluding net realized gains (losses) (1)	  	$	284	  	 	$	263	  	 	$	330	  	 	$	312	  	 	$	313	  	 	$	547	  	 	$	622	  	 	$	1,264	  	

Combined ratio	  				 				 				 				 				 				 				 				
Loss and loss expense ratio	  	 	76.9	% 	 	 	73.8	% 	 	 	68.1	% 	 	 	71.0	% 	 	 	69.7	% 	 	 	75.5	% 	 	 	69.1	% 	 	 	69.3	% 	
Policy acquisition cost ratio	  	 	8.9	% 	 	 	10.1	% 	 	 	11.8	% 	 	 	11.4	% 	 	 	9.5	% 	 	 	9.5	% 	 	 	10.5	% 	 	 	11.1	% 	
Administrative expense ratio	  	 	9.2	% 	 	 	11.1	% 	 	 	10.2	% 	 	 	7.8	% 	 	 	11.1	% 	 	 	10.0	% 	 	 	10.9	% 	 	 	9.9	% 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Combined ratio	  	 	95.0	% 	 	 	95.0	% 	 	 	90.1	% 	 	 	90.2	% 	 	 	90.3	% 	 	 	95.0	% 	 	 	90.5	% 	 	 	90.3	% 	

Large losses and other items (before tax)	  				 				 				 				 				 				 				 				
Reinstatement premiums (expensed) collected	  	$	—  	  	 	$	(12	) 	 	$	1	  	 	$	1	  	 	$	(3	) 	 	$	(12	) 	 	$	(6	) 	 	$	(4	) 	
Catastrophe losses	  	$	110	  	 	$	76	  	 	$	21	  	 	$	17	  	 	$	53	  	 	$	186	  	 	$	105	  	 	$	143	  	
Prior period development—unfavorable (favorable)	  	$	(71	) 	 	$	(35	) 	 	$	46	  	 	$	(35	) 	 	$	(73	) 	 	$	(106	) 	 	$	(118	) 	 	$	(107	) 	
Loss and loss expense ratio excluding catastrophe losses and prior period development	  	 	74.4	% 	 	 	70.2	% 	 	 	63.7	% 	 	 	72.4	% 	 	 	71.0	% 	 	 	72.6	% 	 	 	71.3	% 	 	 	69.4	% 	
									
% Change versus prior year period	  				 				 				 				 				 				 				 				
Net premiums written	  	 	21	% 	 	 	-8	% 	 	 	7	% 	 	 	5	% 	 	 	-1	% 	 	 	7	% 	 	 	0	% 	 	 	3	% 	
Net premiums earned	  	 	21	% 	 	 	-2	% 	 	 	11	% 	 	 	-2	% 	 	 	-6	% 	 	 	9	% 	 	 	-5	% 	 	 	-1	% 	
									
Other ratios	  				 				 				 				 				 				 				 				
Net premiums written/gross premiums written	  	 	64	% 	 	 	66	% 	 	 	67	% 	 	 	52	% 	 	 	54	% 	 	 	65	% 	 	 	59	% 	 	 	59	% 	
 
(1)	See Non-GAAP Financial Measures.	

Insurance - North American	  	Page 9	

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

 	  	2Q-11	 	 	1Q-11	 	 	4Q-10	 	 	3Q-10	 	 	2Q-10	 	 	YTD
2011	 	 	YTD
2010	 	 	Full Year
2010	 	
Gross premiums written	  	$	1,937	  	 	$	1,940	  	 	$	1,750	  	 	$	1,584	  	 	$	1,787	  	 	$	3,877	  	 	$	3,658	  	 	$	6,992	  	
Net premiums written	  	 	1,477	  	 	 	1,437	  	 	 	1,353	  	 	 	1,205	  	 	 	1,302	  	 	 	2,914	  	 	 	2,722	  	 	 	5,280	  	
Net premiums earned	  	 	1,447	  	 	 	1,304	  	 	 	1,405	  	 	 	1,321	  	 	 	1,263	  	 	 	2,751	  	 	 	2,514	  	 	 	5,240	  	
Losses and loss expenses	  	 	733	  	 	 	862	  	 	 	697	  	 	 	605	  	 	 	644	  	 	 	1,595	  	 	 	1,345	  	 	 	2,647	  	
Policy benefits	  	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	1	  	 	 	—  	  	 	 	4	  	 	 	4	  	
Policy acquisition costs	  	 	348	  	 	 	312	  	 	 	346	  	 	 	326	  	 	 	296	  	 	 	660	  	 	 	579	  	 	 	1,251	  	
Administrative expenses	  	 	242	  	 	 	224	  	 	 	227	  	 	 	204	  	 	 	207	  	 	 	466	  	 	 	409	  	 	 	840	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Underwriting income (loss)	  	 	124	  	 	 	(94	) 	 	 	135	  	 	 	186	  	 	 	115	  	 	 	30	  	 	 	177	  	 	 	498	  	
									
Net investment income	  	 	138	  	 	 	131	  	 	 	128	  	 	 	118	  	 	 	115	  	 	 	269	  	 	 	229	  	 	 	475	  	
Net realized gains (losses)	  	 	(10	) 	 	 	(9	) 	 	 	21	  	 	 	32	  	 	 	48	  	 	 	(19	) 	 	 	70	  	 	 	123	  	
Interest expense	  	 	1	  	 	 	1	  	 	 	1	  	 	 	—  	  	 	 	—  	  	 	 	2	  	 	 	—  	  	 	 	1	  	
Other income (expense)	  	 	5	  	 	 	2	  	 	 	8	  	 	 	4	  	 	 	3	  	 	 	7	  	 	 	1	  	 	 	13	  	
Income tax expense	  	 	40	  	 	 	19	  	 	 	37	  	 	 	63	  	 	 	59	  	 	 	59	  	 	 	73	  	 	 	173	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income	  	 	216	  	 	 	10	  	 	 	254	  	 	 	277	  	 	 	222	  	 	 	226	  	 	 	404	  	 	 	935	  	
									
Net realized gains (losses)	  	 	(10	) 	 	 	(9	) 	 	 	21	  	 	 	32	  	 	 	48	  	 	 	(19	) 	 	 	70	  	 	 	123	  	
Net realized gains (losses) in other income (expense)	  	 	1	  	 	 	5	  	 	 	7	  	 	 	9	  	 	 	1	  	 	 	6	  	 	 	6	  	 	 	22	  	
Tax expense (benefit) on net realized gains (losses)	  	 	—  	  	 	 	(3	) 	 	 	3	  	 	 	6	  	 	 	13	  	 	 	(3	) 	 	 	14	  	 	 	23	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income excluding net realized gains (losses) (1)	  	$	225	  	 	$	11	  	 	$	229	  	 	$	242	  	 	$	186	  	 	$	236	  	 	$	342	  	 	$	813	  	

Combined ratio	  				 				 				 				 				 				 				 				
Loss and loss expense ratio	  	 	50.7	% 	 	 	66.1	% 	 	 	49.6	% 	 	 	45.8	% 	 	 	51.0	% 	 	 	58.0	% 	 	 	53.7	% 	 	 	50.6	% 	
Policy acquisition cost ratio	  	 	24.0	% 	 	 	23.9	% 	 	 	24.6	% 	 	 	24.7	% 	 	 	23.5	% 	 	 	24.0	% 	 	 	23.0	% 	 	 	23.9	% 	
Administrative expense ratio	  	 	16.7	% 	 	 	17.2	% 	 	 	16.1	% 	 	 	15.5	% 	 	 	16.4	% 	 	 	16.9	% 	 	 	16.3	% 	 	 	16.0	% 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Combined ratio	  	 	91.4	% 	 	 	107.2	% 	 	 	90.3	% 	 	 	86.0	% 	 	 	90.9	% 	 	 	98.9	% 	 	 	93.0	% 	 	 	90.5	% 	

Large losses and other items (before tax)	  				 				 				 				 				 				 				 				
Reinstatement premiums (expensed) collected	  	$	3	  	 	$	(63	) 	 	$	—  	  	 	$	(7	) 	 	$	(2	) 	 	$	(60	) 	 	$	(26	) 	 	$	(33	) 	
Catastrophe losses	  	$	10	  	 	$	187	  	 	$	25	  	 	$	25	  	 	$	18	  	 	$	197	  	 	$	82	  	 	$	132	  	
Prior period development—unfavorable (favorable)	  	$	(40	) 	 	$	(44	) 	 	$	(91	) 	 	$	(117	) 	 	$	(45	) 	 	$	(84	) 	 	$	(82	) 	 	$	(290	) 	
Loss and loss expense ratio excluding catastrophe losses and prior period development	  	 	52.9	% 	 	 	52.8	% 	 	 	54.4	% 	 	 	52.5	% 	 	 	53.0	% 	 	 	52.7	% 	 	 	53.1	% 	 	 	53.3	% 	
									
% Change versus prior year period	  				 				 				 				 				 				 				 				
Net premiums written as reported	  	 	14	% 	 	 	1	% 	 	 	0	% 	 	 	0	% 	 	 	3	% 	 	 	7	% 	 	 	5	% 	 	 	3	% 	
Net premiums earned as reported	  	 	15	% 	 	 	4	% 	 	 	0	% 	 	 	0	% 	 	 	1	% 	 	 	9	% 	 	 	3	% 	 	 	2	% 	
Net premiums written constant $	  	 	5	% 	 	 	1	% 	 	 	1	% 	 	 	1	% 	 	 	-1	% 	 	 	3	% 	 	 	-1	% 	 	 	0	% 	
Net premiums earned constant $	  	 	5	% 	 	 	2	% 	 	 	1	% 	 	 	2	% 	 	 	-2	% 	 	 	4	% 	 	 	-3	% 	 	 	0	% 	
Underwriting income constant $	  				 				 				 				 	$	127	  	 				 	$	184	  	 				
Income excluding net realized gains (losses), constant $	  				 				 				 				 	$	204	  	 				 	$	355	  	 				
									
Other ratios	  				 				 				 				 				 				 				 				
Net premiums written/gross premiums written	  	 	76	% 	 	 	74	% 	 	 	77	% 	 	 	76	% 	 	 	73	% 	 	 	75	% 	 	 	74	% 	 	 	76	% 	
 
(1)	See Non-GAAP Financial Measures.	

Insurance - Overseas General	  	Page 10	

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

 	  	2Q-11	 	 	1Q-11	 	 	4Q-10	 	 	3Q-10	 	 	2Q-10	 	 	YTD
2011	 	 	YTD
2010	 	 	Full Year
2010	 	
Gross premiums written	  	$	298	  	 	$	330	  	 	$	146	  	 	$	281	  	 	$	320	  	 	$	628	  	 	$	719	  	 	$	1,146	  	
Net premiums written	  	 	282	  	 	 	315	  	 	 	143	  	 	 	272	  	 	 	289	  	 	 	597	  	 	 	660	  	 	 	1,075	  	
Net premiums earned	  	 	254	  	 	 	260	  	 	 	268	  	 	 	271	  	 	 	256	  	 	 	514	  	 	 	532	  	 	 	1,071	  	
Losses and loss expenses	  	 	112	  	 	 	279	  	 	 	127	  	 	 	137	  	 	 	103	  	 	 	391	  	 	 	254	  	 	 	518	  	
Policy acquisition costs	  	 	47	  	 	 	46	  	 	 	51	  	 	 	51	  	 	 	48	  	 	 	93	  	 	 	102	  	 	 	204	  	
Administrative expenses	  	 	14	  	 	 	12	  	 	 	14	  	 	 	14	  	 	 	15	  	 	 	26	  	 	 	27	  	 	 	55	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Underwriting income (loss)	  	 	81	  	 	 	(77	) 	 	 	76	  	 	 	69	  	 	 	90	  	 	 	4	  	 	 	149	  	 	 	294	  	
Net investment income	  	 	71	  	 	 	72	  	 	 	75	  	 	 	71	  	 	 	73	  	 	 	143	  	 	 	142	  	 	 	288	  	
Net realized gains (losses)	  	 	(14	) 	 	 	(13	) 	 	 	24	  	 	 	10	  	 	 	28	  	 	 	(27	) 	 	 	59	  	 	 	93	  	
Interest expense	  	 	1	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	1	  	 	 	—  	  	 	 	—  	  	
Other income (expense)	  	 	(1	) 	 	 	6	  	 	 	7	  	 	 	10	  	 	 	2	  	 	 	5	  	 	 	6	  	 	 	23	  	
Income tax expense	  	 	8	  	 	 	10	  	 	 	11	  	 	 	12	  	 	 	9	  	 	 	18	  	 	 	19	  	 	 	42	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income (loss)	  	 	128	  	 	 	(22	) 	 	 	171	  	 	 	148	  	 	 	184	  	 	 	106	  	 	 	337	  	 	 	656	  	
Net realized gains (losses)	  	 	(14	) 	 	 	(13	) 	 	 	24	  	 	 	10	  	 	 	28	  	 	 	(27	) 	 	 	59	  	 	 	93	  	
Net realized gains (losses) in other income (expense)	  	 	(2	) 	 	 	4	  	 	 	6	  	 	 	10	  	 	 	1	  	 	 	2	  	 	 	5	  	 	 	21	  	
Tax expense on net realized gains (losses)	  	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	1	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	1	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income excluding net realized gains (losses)  (1)	  	$	144	  	 	$	(13	) 	 	$	141	  	 	$	129	  	 	$	155	  	 	$	131	  	 	$	273	  	 	$	543	  	

Combined ratio	  				 				 				 				 				 				 				 				
Loss and loss expense ratio	  	 	44.1	% 	 	 	107.3	% 	 	 	47.5	% 	 	 	50.4	% 	 	 	40.4	% 	 	 	76.1	% 	 	 	47.8	% 	 	 	48.4	% 	
Policy acquisition cost ratio	  	 	18.5	% 	 	 	17.8	% 	 	 	19.0	% 	 	 	19.0	% 	 	 	18.5	% 	 	 	18.1	% 	 	 	19.1	% 	 	 	19.0	% 	
Administrative expense ratio	  	 	5.3	% 	 	 	4.6	% 	 	 	5.2	% 	 	 	4.9	% 	 	 	5.8	% 	 	 	4.9	% 	 	 	5.1	% 	 	 	5.1	% 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Combined ratio	  	 	67.9	% 	 	 	129.7	% 	 	 	71.7	% 	 	 	74.3	% 	 	 	64.7	% 	 	 	99.1	% 	 	 	72.0	% 	 	 	72.5	% 	

Large losses and other items (before tax)	  				 				 				 				 				 				 				 				
Reinstatement premiums collected	  	$	5	  	 	$	1	  	 	$	—  	  	 	$	—  	  	 	$	—  	  	 	$	6	  	 	$	2	  	 	$	2	  	
Catastrophe losses	  	$	22	  	 	$	152	  	 	$	5	  	 	$	49	  	 	$	5	  	 	$	174	  	 	$	37	  	 	$	91	  	
Prior period development—unfavorable (favorable)	  	$	(35	) 	 	$	(14	) 	 	$	(12	) 	 	$	(49	) 	 	$	(31	) 	 	$	(49	) 	 	$	(45	) 	 	$	(106	) 	
Loss and loss expense ratio excluding catastrophe losses and prior period development	  	 	50.1	% 	 	 	54.4	% 	 	 	50.3	% 	 	 	50.2	% 	 	 	50.9	% 	 	 	52.2	% 	 	 	49.6	% 	 	 	50.0	% 	
									
% Change versus prior year period	  				 				 				 				 				 				 				 				
Net premiums written	  	 	-2	% 	 	 	-15	% 	 	 	-1	% 	 	 	32	% 	 	 	-12	% 	 	 	-10	% 	 	 	-4	% 	 	 	4	% 	
Net premiums earned	  	 	-1	% 	 	 	-6	% 	 	 	6	% 	 	 	10	% 	 	 	6	% 	 	 	-3	% 	 	 	11	% 	 	 	9	% 	
									
Other ratios	  				 				 				 				 				 				 				 				
Net premiums written/gross premiums written	  	 	95	% 	 	 	95	% 	 	 	98	% 	 	 	97	% 	 	 	90	% 	 	 	95	% 	 	 	92	% 	 	 	94	% 	
 
(1)	See Non-GAAP Financial Measures.	

Global Reinsurance	  	Page 11	

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

 	  	2Q-11	 	 	1Q-11	 	 	4Q-10	 	 	3Q-10	 	 	2Q-10	 	 	YTD
2011	 	 	YTD
2010	 	 	Full Year
2010	 	
Gross premiums written (1)	  	$	474	  	 	$	416	  	 	$	413	  	 	$	378	  	 	$	398	  	 	$	890	  	 	$	788	  	 	$	1,579	  	
Net premiums written	  	 	459	  	 	 	409	  	 	 	407	  	 	 	373	  	 	 	391	  	 	 	868	  	 	 	776	  	 	 	1,556	  	
Net premiums earned	  	 	452	  	 	 	399	  	 	 	388	  	 	 	386	  	 	 	388	  	 	 	851	  	 	 	768	  	 	 	1,542	  	
Losses and loss expenses	  	 	147	  	 	 	128	  	 	 	117	  	 	 	119	  	 	 	129	  	 	 	275	  	 	 	260	  	 	 	496	  	
Policy benefits	  	 	108	  	 	 	91	  	 	 	90	  	 	 	93	  	 	 	86	  	 	 	199	  	 	 	170	  	 	 	353	  	
Policy acquisition costs	  	 	66	  	 	 	61	  	 	 	65	  	 	 	65	  	 	 	66	  	 	 	127	  	 	 	127	  	 	 	257	  	
Administrative expenses	  	 	72	  	 	 	68	  	 	 	57	  	 	 	59	  	 	 	54	  	 	 	140	  	 	 	112	  	 	 	228	  	
Net investment income	  	 	59	  	 	 	46	  	 	 	43	  	 	 	43	  	 	 	43	  	 	 	105	  	 	 	86	  	 	 	172	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Life underwriting income (2)	  	 	118	  	 	 	97	  	 	 	102	  	 	 	93	  	 	 	96	  	 	 	215	  	 	 	185	  	 	 	380	  	
									
Net realized gains (losses)	  	 	(68	) 	 	 	(13	) 	 	 	5	  	 	 	(85	) 	 	 	(155	) 	 	 	(81	) 	 	 	(112	) 	 	 	(192	) 	
Interest expense	  	 	3	  	 	 	3	  	 	 	3	  	 	 	—  	  	 	 	—  	  	 	 	6	  	 	 	—  	  	 	 	3	  	
Other income (expense)	  	 	(8	) 	 	 	(5	) 	 	 	(9	) 	 	 	(5	) 	 	 	(3	) 	 	 	(13	) 	 	 	(6	) 	 	 	(20	) 	
Income tax expense	  	 	14	  	 	 	13	  	 	 	16	  	 	 	16	  	 	 	16	  	 	 	27	  	 	 	30	  	 	 	62	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income (loss)	  	 	25	  	 	 	63	  	 	 	79	  	 	 	(13	) 	 	 	(78	) 	 	 	88	  	 	 	37	  	 	 	103	  	
									
Net realized gains (losses)	  	 	(68	) 	 	 	(13	) 	 	 	5	  	 	 	(85	) 	 	 	(155	) 	 	 	(81	) 	 	 	(112	) 	 	 	(192	) 	
Net realized gains (losses) in other income (expense)	  	 	(1	) 	 	 	1	  	 	 	1	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	1	  	 	 	2	  	
Tax expense (benefit) on net realized gains (losses)	  	 	1	  	 	 	—  	  	 	 	5	  	 	 	—  	  	 	 	1	  	 	 	1	  	 	 	2	  	 	 	7	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income excluding net realized gains (losses) (3)	  	$	95	  	 	$	75	  	 	$	78	  	 	$	72	  	 	$	78	  	 	$	170	  	 	$	150	  	 	$	300	  	

Deposits collected on universal life and investment contracts (1)	  	$	94	  	 	$	117	  	 	$	93	  	 	$	51	  	 	$	58	  	 	$	211	  	 	$	113	  	 	$	257	  	
Fees on universal life and investment contracts (1)	  	$	13	  	 	$	11	  	 	$	14	  	 	$	10	  	 	$	11	  	 	$	24	  	 	$	18	  	 	$	42	  	
									
% Change versus prior year period	  				 				 				 				 				 				 				 				
Net premiums written	  	 	17	% 	 	 	6	% 	 	 	4	% 	 	 	0	% 	 	 	7	% 	 	 	12	% 	 	 	9	% 	 	 	5	% 	
Net premiums earned	  	 	16	% 	 	 	5	% 	 	 	5	% 	 	 	7	% 	 	 	7	% 	 	 	11	% 	 	 	10	% 	 	 	8	% 	
 
(1)	Consistent with GAAP, premiums collected on universal life and investment contracts are considered deposits and excluded from revenues. Fees on universal life and investment contracts are revenue for GAAP and have been classified as gross premiums written.	
 
(2)	We assess the performance of our Life business based on life underwriting income which includes net investment income.	
 
(3)	See Non-GAAP Financial Measures.	

Life	  	Page 12	

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

 	  	Unpaid Losses	 	 	Net Paid  to
Incurred Ratio	 	
 	  	Gross	 	 	Ceded	 	 	Net	 	 			
Balance at December 31, 2009	  	$	37,783	  	 	$	12,745	  	 	$	25,038	  	 				
					
Losses and loss expenses incurred	  	 	2,544	  	 	 	623	  	 	 	1,921	  	 				
Losses and loss expenses paid	  	 	(2,491	) 	 	 	(729	) 	 	 	(1,762	) 	 	 	92	% 	
Other (incl. foreign exch. revaluation)	  	 	(285	) 	 	 	(79	) 	 	 	(206	) 	 				
	  	 	 	 	 	 	 	 	 	 	 	 	 				
Balance at March 31, 2010	  	$	37,551	  	 	$	12,560	  	 	$	24,991	  	 				
					
Losses and loss expenses incurred	  	 	2,725	  	 	 	925	  	 	 	1,800	  	 				
Losses and loss expenses paid	  	 	(2,824	) 	 	 	(976	) 	 	 	(1,848	) 	 	 	103	% 	
Other (incl. foreign exch. revaluation)	  	 	(390	) 	 	 	(135	) 	 	 	(255	) 	 				
	  	 	 	 	 	 	 	 	 	 	 	 	 				
Balance at June 30, 2010	  	$	37,062	  	 	$	12,374	  	 	$	24,688	  	 				
					
Losses and loss expenses incurred	  	 	3,236	  	 	 	1,349	  	 	 	1,887	  	 				
Losses and loss expenses paid	  	 	(3,010	) 	 	 	(1,139	) 	 	 	(1,871	) 	 	 	99	% 	
Other (incl. foreign exch. revaluation)	  	 	454	  	 	 	166	  	 	 	288	  	 				
	  	 	 	 	 	 	 	 	 	 	 	 	 				
Balance at September 30, 2010	  	$	37,742	  	 	$	12,750	  	 	$	24,992	  	 				
					
Losses and loss expenses incurred	  	 	2,350	  	 	 	379	  	 	 	1,971	  	 				
Losses and loss expenses paid	  	 	(2,954	) 	 	 	(1,022	) 	 	 	(1,932	) 	 	 	98	% 	
Other (incl. foreign exch. revaluation)	  	 	253	  	 	 	42	  	 	 	211	  	 				
	  	 	 	 	 	 	 	 	 	 	 	 	 				
Balance at December 31, 2010	  	$	37,391	  	 	$	12,149	  	 	$	25,242	  	 				
					
Losses and loss expenses incurred	  	 	3,820	  	 	 	1,557	  	 	 	2,263	  	 				
Losses and loss expenses paid	  	 	(2,847	) 	 	 	(884	) 	 	 	(1,963	) 	 	 	87	% 	
Other (incl. foreign exch. revaluation)	  	 	479	  	 	 	161	  	 	 	318	  	 				
	  	 	 	 	 	 	 	 	 	 	 	 	 				
Balance at March 31, 2011	  	$	38,843	  	 	$	12,983	  	 	$	25,860	  	 				
					
Losses and loss expenses incurred	  	 	2,752	  	 	 	526	  	 	 	2,226	  	 				
Losses and loss expenses paid	  	 	(2,730	) 	 	 	(872	) 	 	 	(1,858	) 	 	 	83	% 	
Other (incl. foreign exch. revaluation)	  	 	86	  	 	 	30	  	 	 	56	  	 				
	  	 	 	 	 	 	 	 	 	 	 	 	 				
Balance at June 30, 2011	  	$	38,951	  	 	$	12,667	  	 	$	26,284	  	 				

Add net recoverable on paid losses	  	 	—  	  	 	 	708	  	 	 	(708	) 	 				
	  	 	 	 	 	 	 	 	 	 	 	 	 				
Balance including net recoverable on paid losses	  	$	38,951	  	 	$	13,375	  	 	$	25,576	  	 				

			
Loss Reserve Rollforward	  	Page 13	

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

 	  	June 30	 	 	March 31	 	 	December 31	 	
 	  	2011	 	 	2011	 	 	2010	 	
Reinsurance recoverable on paid losses and loss expenses	  				 				 				
Active operations	  	$	563	  	 	$	595	  	 	$	579	  	
Brandywine	  	 	250	  	 	 	313	  	 	 	281	  	
Westchester Run-off	  	 	32	  	 	 	26	  	 	 	26	  	
Other Run-off	  	 	12	  	 	 	12	  	 	 	12	  	
	  	 	 	 	 	 	 	 	 	 	 	 	
Total	  	$	857	  	 	$	946	  	 	$	898	  	
	  	 	 	 	 	 	 	 	 	 	 	 	
Reinsurance recoverable on unpaid losses and loss expenses	  				 				 				
Active operations	  	$	10,751	  	 	$	10,893	  	 	$	9,956	  	
Brandywine	  	 	1,822	  	 	 	1,931	  	 	 	2,024	  	
Westchester Run-off	  	 	441	  	 	 	463	  	 	 	468	  	
Other Run-off	  	 	26	  	 	 	40	  	 	 	55	  	
	  	 	 	 	 	 	 	 	 	 	 	 	
Total	  	$	13,040	  	 	$	13,327	  	 	$	12,503	  	
	  	 	 	 	 	 	 	 	 	 	 	 	
Gross reinsurance recoverable	  				 				 				
Active operations	  	$	11,314	  	 	$	11,488	  	 	$	10,535	  	
Brandywine	  	 	2,072	  	 	 	2,244	  	 	 	2,305	  	
Westchester Run-off	  	 	473	  	 	 	489	  	 	 	494	  	
Other Run-off	  	 	38	  	 	 	52	  	 	 	67	  	
	  	 	 	 	 	 	 	 	 	 	 	 	
Total	  	$	13,897	  	 	$	14,273	  	 	$	13,401	  	
	  	 	 	 	 	 	 	 	 	 	 	 	
Provision for uncollectible reinsurance	  				 				 				
Active operations	  	$	(326	) 	 	$	(323	) 	 	$	(324	) 	
Brandywine	  	 	(171	) 	 	 	(172	) 	 	 	(175	) 	
Westchester Run-off	  	 	(21	) 	 	 	(21	) 	 	 	(21	) 	
Other Run-off	  	 	(4	) 	 	 	(8	) 	 	 	(10	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	
Total	  	$	(522	) 	 	$	(524	) 	 	$	(530	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	
Net reinsurance recoverable	  				 				 				
Active operations	  	$	10,988	  	 	$	11,165	  	 	$	10,211	  	
Brandywine	  	 	1,901	  	 	 	2,072	  	 	 	2,130	  	
Westchester Run-off	  	 	452	  	 	 	468	  	 	 	473	  	
Other Run-off	  	 	34	  	 	 	44	  	 	 	57	  	
	  	 	 	 	 	 	 	 	 	 	 	 	
Total	  	$	13,375	  	 	$	13,749	  	 	$	12,871	  	

			
Reinsurance Recoverable	  	Page 14	

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

 	  	June 30
2011	 	 	March 31
2011	 	 	December 31
2010	 	
Market Value	  				 				 				 				 				 				
Fixed maturities available for sale	  	$	41,038	  	 				 	$	38,718	  	 				 	$	37,539	  	 				
Fixed maturities held to maturity	  	 	9,078	  	 				 	 	9,202	  	 				 	 	9,461	  	 				
Short-term investments	  	 	2,380	  	 				 	 	2,375	  	 				 	 	1,983	  	 				
	  	 	 	 	 				 	 	 	 	 				 	 	 	 	 				
Total	  	$	52,496	  	 				 	$	50,295	  	 				 	$	48,983	  	 				
	  	 	 	 	 				 	 	 	 	 				 	 	 	 	 				
Asset Allocation by Market Value	  				 				 				 				 				 				
Treasury	  	$	1,832	  	 	 	3	% 	 	$	1,880	  	 	 	4	% 	 	$	2,075	  	 	 	4	% 	
Agency	  	 	1,755	  	 	 	3	% 	 	 	1,946	  	 	 	4	% 	 	 	2,015	  	 	 	4	% 	
Corporate and asset-backed	  	 	16,805	  	 	 	32	% 	 	 	15,818	  	 	 	31	% 	 	 	15,900	  	 	 	33	% 	
Mortgage-backed	  	 	13,483	  	 	 	26	% 	 	 	12,880	  	 	 	25	% 	 	 	12,362	  	 	 	25	% 	
Municipal (1)	  	 	2,534	  	 	 	5	% 	 	 	2,453	  	 	 	5	% 	 	 	2,449	  	 	 	5	% 	
Non-U.S.	  	 	13,707	  	 	 	26	% 	 	 	12,943	  	 	 	26	% 	 	 	12,199	  	 	 	25	% 	
Short-term investments	  	 	2,380	  	 	 	5	% 	 	 	2,375	  	 	 	5	% 	 	 	1,983	  	 	 	4	% 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total	  	$	52,496	  	 	 	100	% 	 	$	50,295	  	 	 	100	% 	 	$	48,983	  	 	 	100	% 	

Note: Insured municipal bonds represent $705 million, or 28% of our municipal bond holdings.	  	
							
Credit Quality by Market Value	  				 				 				 				 				 				
AAA	  	$	25,331	  	 	 	48	% 	 	$	24,636	  	 	 	49	% 	 	$	23,718	  	 	 	48	% 	
AA	  	 	4,783	  	 	 	9	% 	 	 	4,543	  	 	 	9	% 	 	 	4,714	  	 	 	10	% 	
A	  	 	9,944	  	 	 	19	% 	 	 	8,847	  	 	 	18	% 	 	 	8,482	  	 	 	17	% 	
BBB	  	 	5,691	  	 	 	11	% 	 	 	5,583	  	 	 	11	% 	 	 	5,487	  	 	 	11	% 	
BB	  	 	3,667	  	 	 	7	% 	 	 	3,473	  	 	 	7	% 	 	 	3,357	  	 	 	7	% 	
B	  	 	2,389	  	 	 	5	% 	 	 	2,500	  	 	 	5	% 	 	 	2,393	  	 	 	5	% 	
Other	  	 	691	  	 	 	1	% 	 	 	713	  	 	 	1	% 	 	 	832	  	 	 	2	% 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total	  	$	52,496	  	 	 	100	% 	 	$	50,295	  	 	 	100	% 	 	$	48,983	  	 	 	100	% 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Cost/Amortized Cost	  				 				 				 				 				 				
Fixed maturities available for sale	  	$	39,862	  	 				 	$	37,750	  	 				 	$	36,542	  	 				
Fixed maturities held to maturity	  	 	9,033	  	 				 	 	9,270	  	 				 	 	9,501	  	 				
Short-term investments	  	 	2,380	  	 				 	 	2,375	  	 				 	 	1,983	  	 				
	  	 	 	 	 				 	 	 	 	 				 	 	 	 	 				
Subtotal	  	 	51,275	  	 				 	 	49,395	  	 				 	 	48,026	  	 				
Equity securities	  	 	549	  	 				 	 	510	  	 				 	 	666	  	 				
Other investments	  	 	1,916	  	 				 	 	1,613	  	 				 	 	1,511	  	 				
	  	 	 	 	 				 	 	 	 	 				 	 	 	 	 				
Total	  	$	53,740	  	 				 	$	51,518	  	 				 	$	50,203	  	 				
	  	 	 	 	 				 	 	 	 	 				 	 	 	 	 				
Avg. duration of fixed maturities	  	 	3.8 years	  	 				 	 	3.8 years	  	 				 	 	3.7 years	  	 				
Avg. market yield of fixed maturities (2)	  	 	3.4	% 	 				 	 	3.5	% 	 				 	 	3.6	% 	 				
Avg. credit quality	  	 	AA	  	 				 	 	AA	  	 				 	 	AA	  	 				
Avg. yield on invested assets (3)	  	 	4.3	% 	 				 	 	4.3	% 	 				 	 	4.3	% 	 				
 
(1)	The rating of the municipal portfolio is AA with 15% of our holdings pre-funded with AAA Federal securities. The portfolio is highly diversified predominantly in State general obligation bonds and essential service revenue bonds (education, utilities, water, power, sewers).	
 
(2)	Weighted average yield to maturity of our fixed income portfolio based on the market prices of the holdings as of that date.	
 
(3)	Net investment income divided by average cost of fixed maturities and other investments, and average market value of equity securities.	

Investments	  	Page 15	

					
	  	ACE Limited
Investment Portfolio - 2
(in millions of U.S. dollars)
(Unaudited)	  		
 
Mortgage-backed Fixed Income Portfolio
Market Value at June 30, 2011

 	  	S&P Credit Rating	 	
 	  	AAA	 	  	AA	 	  	A	 	  	BBB	 	  	BB and below	 	  	Total	 	
							
Mortgage-backed securities	  				  				  				  				  				  				
Residential mortgage-backed (RMBS)	  				  				  				  				  				  				
GNMA	  	$	854	  	  	$	—  	  	  	$	—  	  	  	$	—  	  	  	$	—  	  	  	$	854	  	
FNMA	  	 	6,872	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	6,872	  	
Freddie Mac	  	 	3,214	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	3,214	  	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total agency RMBS	  	 	10,940	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	10,940	  	
Non-agency RMBS	  	 	346	  	  	 	15	  	  	 	19	  	  	 	35	  	  	 	650	  	  	 	1,065	  	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total residential mortgage-backed	  	 	11,286	  	  	 	15	  	  	 	19	  	  	 	35	  	  	 	650	  	  	 	12,005	  	
Commercial mortgage-backed	  	 	1,437	  	  	 	24	  	  	 	14	  	  	 	3	  	  	 	—  	  	  	 	1,478	  	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total mortgage-backed securities	  	$	12,723	  	  	$	39	  	  	$	33	  	  	$	38	  	  	$	650	  	  	$	13,483	  	

Mortgage-backed securities total $13.5 billion, are rated predominantly AAA and comprise 26% of the fixed income portfolio. This compares to a 36% mortgage-backed weighting in representative indices of the U.S. fixed income market. The minimum rating for initial purchases of mortgage-backed securities is AAA. 
 
Securities issued by Federal agencies with implied or explicit government guarantees total $10.9 billion and represent 91% of the residential mortgage-backed portfolio. 
 
Non-agency residential mortgage-backed securities are backed by prime collateral, and broadly diversified in over 160,000 loans. The portfolio’s loan-to-value ratio is approximately 69% with an average FICO score of 730. With this conservative loan-to-value ratio and subordinated collateral of 9%, the cumulative 5-year foreclosure rate would have to rise to 14% and real estate values would have to fall 12% from their current levels before principal is impaired. The current foreclosure rate of ACE’s non-agency RMBS portfolio is 9%. 
 
Commercial mortgage-backed securities of $1.5 billion are rated predominantly AAA, broadly diversified with over 16,000 loans and seasoned with 67% of the portfolio issued before 2006 and 19% of the portfolio issued after 2009. The average loan-to-value ratio is approximately 67% with a debt service coverage ratio in excess of 1.7 and weighted average subordinated collateral of 32%. The cumulative foreclosure rate would have to rise to 41% before principal is impaired. The current foreclosure rate of the portfolio is about 2.7%. 

Investments 2	  	Page 16	

					
	  	ACE Limited
Investment Portfolio - 3
(in millions of U.S. dollars)
(Unaudited)	  		
 
Mortgage-backed Fixed Income Portfolio
Amortized Cost at June 30, 2011

 	  	S&P Credit Rating	 	
 	  	AAA	 	  	AA	 	  	A	 	  	BBB	 	  	BB and below	 	  	Total	 	
Mortgage-backed securities	  				  				  				  				  				  				
Residential mortgage-backed (RMBS)	  				  				  				  				  				  				
GNMA	  	$	824	  	  	$	—  	  	  	$	—  	  	  	$	—  	  	  	$	—  	  	  	$	824	  	
FNMA	  	 	6,741	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	6,741	  	
Freddie Mac	  	 	3,148	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	3,148	  	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total agency RMBS	  	 	10,713	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	10,713	  	
Non-agency RMBS	  	 	359	  	  	 	17	  	  	 	20	  	  	 	42	  	  	 	781	  	  	 	1,219	  	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total residential mortgage-backed	  	 	11,072	  	  	 	17	  	  	 	20	  	  	 	42	  	  	 	781	  	  	 	11,932	  	
Commercial mortgage-backed	  	 	1,377	  	  	 	21	  	  	 	13	  	  	 	3	  	  	 	—  	  	  	 	1,414	  	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total mortgage-backed securities	  	$	12,449	  	  	$	38	  	  	$	33	  	  	$	45	  	  	$	781	  	  	$	13,346	  	

			
Investments 3	  	Page 17	

					
	  	ACE Limited
Investment Portfolio - 4
(in millions of U.S. dollars)
(Unaudited)	  		
 
U.S. Investment Grade Corporate and Asset-backed Fixed Income Portfolio
Market Value at June 30, 2011

 	  	S&P Credit Rating	 	
 	  	AAA	 	  	AA	 	  	A	 	  	BBB	 	  	Total	 	
Asset-backed	  	$	364	  	  	$	4	  	  	$	9	  	  	$	11	  	  	$	388	  	
Banks	  	 	393	  	  	 	244	  	  	 	2,236	  	  	 	235	  	  	 	3,108	  	
Basic Materials	  	 	—  	  	  	 	—  	  	  	 	71	  	  	 	190	  	  	 	261	  	
Communications	  	 	—  	  	  	 	—  	  	  	 	647	  	  	 	688	  	  	 	1,335	  	
Consumer, Cyclical	  	 	—  	  	  	 	75	  	  	 	246	  	  	 	226	  	  	 	547	  	
Consumer, Non-Cyclical	  	 	67	  	  	 	531	  	  	 	535	  	  	 	509	  	  	 	1,642	  	
Diversified Financial Services	  	 	40	  	  	 	54	  	  	 	152	  	  	 	201	  	  	 	447	  	
Energy	  	 	81	  	  	 	16	  	  	 	197	  	  	 	481	  	  	 	775	  	
Industrial	  	 	89	  	  	 	443	  	  	 	379	  	  	 	153	  	  	 	1,064	  	
Utilities	  	 	7	  	  	 	4	  	  	 	480	  	  	 	547	  	  	 	1,038	  	
All Others	  	 	115	  	  	 	75	  	  	 	445	  	  	 	398	  	  	 	1,033	  	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total	  	$	1,156	  	  	$	1,446	  	  	$	5,397	  	  	$	3,639	  	  	$	11,638	  	

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

Investments 4	  	Page 18	

					
	  	ACE Limited
Investment Portfolio - 5
(in millions of U.S. dollars)
(Unaudited)	  		
 
Below Investment Grade Corporate and Asset-backed Fixed Income Portfolio
Market Value at June 30, 2011

 	  	S&P Credit Rating	 	
 	  	BB	 	  	B	 	  	CCC	 	  	Total	 	
Basic Materials	  	$	258	  	  	$	84	  	  	$	16	  	  	$	358	  	
Communications	  	 	455	  	  	 	395	  	  	 	17	  	  	 	867	  	
Consumer, Cyclical	  	 	324	  	  	 	338	  	  	 	21	  	  	 	683	  	
Consumer, Non-Cyclical	  	 	599	  	  	 	418	  	  	 	3	  	  	 	1,020	  	
Diversified Financial Services (1)	  	 	53	  	  	 	69	  	  	 	8	  	  	 	130	  	
Energy	  	 	737	  	  	 	200	  	  	 	7	  	  	 	944	  	
Industrial	  	 	334	  	  	 	188	  	  	 	8	  	  	 	530	  	
Utilities	  	 	196	  	  	 	62	  	  	 	31	  	  	 	289	  	
All Others	  	 	161	  	  	 	180	  	  	 	5	  	  	 	346	  	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total	  	$	3,117	  	  	$	1,934	  	  	$	116	  	  	$	5,167	  	

(1)	Diversified Financial Services includes Asset-backed and Banking Industries.	
 
Below Investment Grade Corporate Fixed Income Portfolio
 
ACE manages high yield bonds as a distinct and separate asset class from investment grade bonds. ACE’s allocation to high yield bonds is explicitly set by internal management and is targeted to securities in the upper tier of credit quality (BB/B). Our minimum rating for initial purchase is BB/B.
 
Six external investment managers are responsible for high yield security selection and portfolio construction.
 
ACE’s high yield managers have a conservative approach to credit selection and very low historical default experience.
 
Securities holdings are highly diversified across industries and are subject to a 1.5% issuer limit as a percentage of high yield allocation. The portfolio comprises over 700 issuers with our largest current issuer exposure at $77 million. ACE monitors position limits on a daily basis through an internal compliance system.
 
Derivative and structured securities (e.g. credit default swaps, CLOs) are not permitted in high yield portfolios.

Investments 5	  	Page 19	

					
	  	ACE Limited
Investment Portfolio - 6
(in millions of U.S. dollars)
(Unaudited)	 		
 
Non-U.S. Fixed Income Portfolio
Market Value at June 30, 2011

 	  	S&P Credit Rating	 	
 	  	AAA	 	  	AA	 	  	A	 	  	BBB	 	  	BB and below	 	  	Total	 	
United Kingdom	  	$	1,028	  	  	$	—  	  	  	$	—  	  	  	$	—  	  	  	$	—  	  	  	$	1,028	  	
Canada	  	 	893	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	893	  	
Republic of Korea	  	 	—  	  	  	 	14	  	  	 	408	  	  	 	—  	  	  	 	—  	  	  	 	422	  	
Japan	  	 	—  	  	  	 	390	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	390	  	
Germany	  	 	356	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	356	  	
Federative Republic of Brazil	  	 	1	  	  	 	—  	  	  	 	—  	  	  	 	219	  	  	 	—  	  	  	 	220	  	
Province of Ontario	  	 	—  	  	  	 	210	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	210	  	
France	  	 	175	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	175	  	
Swiss Confederation	  	 	162	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	162	  	
Province of Quebec	  	 	—  	  	  	 	—  	  	  	 	137	  	  	 	—  	  	  	 	—  	  	  	 	137	  	
State of Queensland	  	 	71	  	  	 	49	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	120	  	
Kingdom of Thailand	  	 	6	  	  	 	—  	  	  	 	105	  	  	 	6	  	  	 	—  	  	  	 	117	  	
People’s Republic of China	  	 	52	  	  	 	29	  	  	 	1	  	  	 	—  	  	  	 	—  	  	  	 	82	  	
Commonwealth of Australia	  	 	70	  	  	 	9	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	79	  	
United Mexican States	  	 	1	  	  	 	—  	  	  	 	23	  	  	 	51	  	  	 	—  	  	  	 	75	  	
State of New South Wales	  	 	69	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	69	  	
Federation of Malaysia	  	 	28	  	  	 	—  	  	  	 	33	  	  	 	—  	  	  	 	—  	  	  	 	61	  	
Dominion of New Zealand	  	 	60	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	60	  	
Taiwan	  	 	—  	  	  	 	59	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	59	  	
State of Victoria	  	 	55	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	55	  	
Republic of Austria	  	 	44	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	44	  	
Arab Republic of Egypt	  	 	22	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	19	  	  	 	41	  	
State of Qatar	  	 	—  	  	  	 	37	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	37	  	
Province of Manitoba	  	 	—  	  	  	 	34	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	34	  	
Province of Alberta	  	 	31	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	31	  	
Other Non-U.S. Government	  	 	203	  	  	 	98	  	  	 	61	  	  	 	34	  	  	 	48	  	  	 	444	  	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Non-U.S. Government Securities	  	$	3,327	  	  	$	929	  	  	$	768	  	  	$	310	  	  	$	67	  	  	$	5,401	  	
European Country Non-U.S. Corporate (1)	  	 	867	  	  	 	303	  	  	 	819	  	  	 	490	  	  	 	343	  	  	 	2,822	  	
Other Non-U.S. Corporate	  	 	937	  	  	 	824	  	  	 	2,086	  	  	 	1,144	  	  	 	493	  	  	 	5,484	  	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
	  	$	5,131	  	  	$	2,056	  	  	$	3,673	  	  	$	1,944	  	  	$	903	  	  	$	13,707	  	

(1)	Excludes United Kingdom	
 
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.
 
81% of ACE’s non-U.S. fixed income is denominated in G7 currencies.
 
Average credit quality of non-U.S. fixed income securities is very high at AA and 53% of holdings are rated AAA or guaranteed by governments or quasi-government agencies.
 
Corporate bond holdings are highly diversified across industries and geographies. Issuer limits are based on credit rating (AA 2%, A 1%, BBB 0.5% of total portfolio) and are monitored on a daily basis by ACE via an internal compliance system.

Investments 6	  	Page 20	

					
	  	ACE Limited
Investment Portfolio - 7
(in millions of U.S. dollars)
(Unaudited)	 		
 
European Country Non-U.S. Fixed Income Portfolio (Excluding United Kingdom)
Market Value at June 30, 2011

 	  	Industry	 	
 	  	Bank	 	  	Financial	 	  	Industrial	 	  	Utility	 	  	Total	 	
Netherlands	  	$	204	  	  	$	171	  	  	$	233	  	  	$	135	  	  	$	743	  	
France	  	 	170	  	  	 	97	  	  	 	115	  	  	 	132	  	  	 	514	  	
Germany	  	 	270	  	  	 	37	  	  	 	73	  	  	 	5	  	  	 	385	  	
Luxembourg	  	 	41	  	  	 	3	  	  	 	216	  	  	 	98	  	  	 	358	  	
Switzerland	  	 	228	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	228	  	
Euro Supranational	  	 	204	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	204	  	
Ireland	  	 	—  	  	  	 	22	  	  	 	104	  	  	 	20	  	  	 	146	  	
Spain	  	 	63	  	  	 	4	  	  	 	61	  	  	 	6	  	  	 	134	  	
Italy	  	 	40	  	  	 	1	  	  	 	17	  	  	 	9	  	  	 	67	  	
Finland	  	 	11	  	  	 	—  	  	  	 	3	  	  	 	3	  	  	 	17	  	
Belgium	  	 	—  	  	  	 	1	  	  	 	11	  	  	 	2	  	  	 	14	  	
Austria	  	 	7	  	  	 	1	  	  	 	2	  	  	 	—  	  	  	 	10	  	
Portugal	  	 	—  	  	  	 	—  	  	  	 	2	  	  	 	—  	  	  	 	2	  	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
European Country Non-U.S. Corporate Securities	  	$	1,238	  	  	$	337	  	  	$	837	  	  	$	410	  	  	$	2,822	  	

Note: ACE has no investments in Greece
 
Top 10 Exposures - European Banks (Excluding United Kingdom)

June 30, 2011	  	Market Value	 	  	Rating	 	
European Investment Bank	  	$	193	  	  	 	AAA	  	
KFW	  	 	187	  	  	 	AAA	  	
UBS AG	  	 	117	  	  	 	A+	  	
Credit Suisse Group AG	  	 	96	  	  	 	A	  	
Rabobank Nederland NV	  	 	95	  	  	 	AAA	  	
BNP Paribas SA	  	 	64	  	  	 	AA	  	
Deutsche Bank AG	  	 	49	  	  	 	A+	  	
Groupe BPCE	  	 	39	  	  	 	A+	  	
Banco Santander SA	  	 	32	  	  	 	AA	  	
Intesa Sanpaolo SpA	  	 	31	  	  	 	A+	  	
 
Top 10 Exposures - European Corporate (Excluding United Kingdom)

June 30, 2011	  	Market Value	 	  	Rating	 	
ING Groep NV	  	$	90	  	  	 	A	  	
Deutsche Telekom AG	  	 	81	  	  	 	BBB+	  	
EDF SA	  	 	70	  	  	 	AA-	  	
Royal Dutch Shell PLC	  	 	67	  	  	 	AA	  	
Telecom Italia SpA	  	 	59	  	  	 	BBB	  	
Telefonica SA	  	 	49	  	  	 	A-	  	
Credit Agricole Groupe	  	 	47	  	  	 	A+	  	
General Electric Co	  	 	40	  	  	 	AA+	  	
Gazprom OAO	  	 	39	  	  	 	BBB	  	
ArcelorMittal	  	 	39	  	  	 	BBB-	  	

Investments 7	  	Page 21	

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

June 30, 2011	  	 	 	  	Rating	 	
 	1	  	 	General Electric Co	  	$	523	  	  	 	AA+	  	
 	2	  	 	Bank of America Corp	  	 	436	  	  	 	A	  	
 	3	  	 	JP Morgan Chase & Co	  	 	429	  	  	 	A+	  	
 	4	  	 	Citigroup Inc	  	 	372	  	  	 	A	  	
 	5	  	 	Morgan Stanley	  	 	356	  	  	 	A	  	
 	6	  	 	Goldman Sachs Group Inc/The	  	 	325	  	  	 	A	  	
 	7	  	 	Verizon Communications Inc	  	 	310	  	  	 	A-	  	
 	8	  	 	Wells Fargo & Co	  	 	257	  	  	 	AA-	  	
 	9	  	 	AT&T INC	  	 	247	  	  	 	A-	  	
 	10	  	 	HSBC Holdings Plc	  	 	239	  	  	 	AA-	  	
 	11	  	 	Lloyds Banking Group Plc	  	 	216	  	  	 	A	  	
 	12	  	 	Royal Bank of Scotland Group P	  	 	170	  	  	 	A	  	
 	13	  	 	Comcast Corp	  	 	168	  	  	 	BBB+	  	
 	14	  	 	Kraft Foods Inc	  	 	165	  	  	 	BBB	  	
 	15	  	 	Barclays PLC	  	 	158	  	  	 	A+	  	
 	16	  	 	Credit Suisse Group	  	 	156	  	  	 	A	  	
 	17	  	 	ConocoPhillips	  	 	128	  	  	 	A	  	
 	18	  	 	Time Warner Cable Inc	  	 	125	  	  	 	BBB	  	
 	19	  	 	American Express Co	  	 	121	  	  	 	BBB+	  	
 	20	  	 	UBS AG	  	 	120	  	  	 	A+	  	
 	21	  	 	BP PLC	  	 	115	  	  	 	A	  	
 	22	  	 	Pfizer Inc	  	 	114	  	  	 	AA	  	
 	23	  	 	Dominion Resources Inc/VA	  	 	109	  	  	 	A-	  	
 	24	  	 	Banco Santander SA	  	 	108	  	  	 	AA	  	
 	25	  	 	Anheuser-Busch InBev NV	  	 	107	  	  	 	A-	  	

Investments 8	  	Page 22	

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

 	  	Three months ended June 30, 2011	 	 	Six months ended June 30, 2011	 	
 	  	Net  Realized
Gains
(Losses)  (1)	 	 	Net Unrealized
Gains
(Losses)	 	  	Net
Impact	 	 	Net Realized
Gains
(Losses)  (1)	 	 	Net Unrealized
Gains
(Losses)	 	  	Net
Impact	 	
Fixed maturities	  	$	74	  	 	$	202	  	  	$	276	  	 	$	123	  	 	$	163	  	  	$	286	  	
Equity securities	  	 	4	  	 	 	6	  	  	 	10	  	 	 	11	  	 	 	8	  	  	 	19	  	
Equity and fixed income derivatives	  	 	(48	) 	 	 	—  	  	  	 	(48	) 	 	 	(68	) 	 	 	—  	  	  	 	(68	) 	
Foreign exchange gains (losses)	  	 	(30	) 	 	 	—  	  	  	 	(30	) 	 	 	(109	) 	 	 	—  	  	  	 	(109	) 	
Other	  	 	(4	) 	 	 	15	  	  	 	11	  	 	 	(5	) 	 	 	62	  	  	 	57	  	
	  	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	  	 	 	 	
Sub-total	  	 	(4	) 	 	 	223	  	  	 	219	  	 	 	(48	) 	 	 	233	  	  	 	185	  	
Mark-to-market gains (losses) from derivative transactions (2)	  	 	(69	) 	 	 	—  	  	  	 	(69	) 	 	 	(70	) 	 	 	—  	  	  	 	(70	) 	
	  	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	  	 	 	 	
Total gains (losses)	  	 	(73	) 	 	 	223	  	  	 	150	  	 	 	(118	) 	 	 	233	  	  	 	115	  	
Partially-owned entities and private equity investments (3)	  	 	2	  	 	 	2	  	  	 	4	  	 	 	36	  	 	 	2	  	  	 	38	  	
Income tax expense (benefit)	  	 	8	  	 	 	74	  	  	 	82	  	 	 	6	  	 	 	60	  	  	 	66	  	
	  	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	  	 	 	 	
Net gains (losses)	  	$	(79	) 	 	$	151	  	  	$	72	  	 	$	(88	) 	 	$	175	  	  	$	87	  	

(1)	Other-than-temporary impairments for the quarter of $8 million include $5 million for fixed maturities and $3 million for other investments. Year to date other-than-temporary impairments of $12 million include $9 million for fixed maturities, and $3 million for other investments.	
 
(2)	Includes $67 million of realized losses on the life reinsurance operations for the quarter which comprises a $70 million loss on guaranteed living benefit derivatives and $3 million of gains on other derivatives, including S&P put options and futures.	
 
(3)	Partially-owned entities are investments where we hold more than an insignificant percentage of the investee’s shares. The net income or loss is included in other income (expense).	

 	  	Three months ended June 30, 2010	 	 	Six months ended June 30, 2010	 	
 	  	Net Realized
Gains
(Losses) (4)	 	 	Net Unrealized
Gains
(Losses)	 	 	Net
Impact	 	 	Net Realized
Gains
(Losses) (4)	 	 	Net Unrealized
Gains
(Losses)	 	 	Net
Impact	 	
Fixed maturities	  	$	77	  	 	$	408	  	 	$	485	  	 	$	158	  	 	$	831	  	 	$	989	  	
Equity securities	  	 	32	  	 	 	(31	) 	 	 	1	  	 	 	77	  	 	 	(55	) 	 	 	22	  	
Equity and fixed income derivatives	  	 	5	  	 	 	—  	  	 	 	5	  	 	 	24	  	 	 	—  	  	 	 	24	  	
Foreign exchange gains (losses)	  	 	61	  	 	 	—  	  	 	 	61	  	 	 	52	  	 	 	—  	  	 	 	52	  	
Other	  	 	(12	) 	 	 	13	  	 	 	1	  	 	 	(8	) 	 	 	68	  	 	 	60	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Sub-total	  	 	163	  	 	 	390	  	 	 	553	  	 	 	303	  	 	 	844	  	 	 	1,147	  	
Mark-to-market gains (losses) from derivative transactions (5)	  	 	(154	) 	 	 	—  	  	 	 	(154	) 	 	 	(126	) 	 	 	—  	  	 	 	(126	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total gains (losses)	  	 	9	  	 	 	390	  	 	 	399	  	 	 	177	  	 	 	844	  	 	 	1,021	  	
Partially-owned entities and private equity investments (6)	  	 	3	  	 	 	—  	  	 	 	3	  	 	 	13	  	 	 	—  	  	 	 	13	  	
Income tax expense (benefit)	  	 	23	  	 	 	108	  	 	 	131	  	 	 	25	  	 	 	213	  	 	 	238	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net gains (losses)	  	$	(11	) 	 	$	282	  	 	$	271	  	 	$	165	  	 	$	631	  	 	$	796	  	

(4)	Other-than-temporary impairments for the quarter of $18 million include $5 million for fixed maturities and $13 million for other investments. Year to date other-than-temporary impairments of $36 million include $23 million for fixed maturities, and $13 million for other investments.	
 
(5)	Includes $158 million of realized losses on the life reinsurance operations for the quarter which comprises a $301 million loss on guaranteed living benefit derivatives and $143 million of gains on other derivatives, including S&P put options and futures.	
 
(6)	Partially-owned entities are investments where we hold more than an insignificant percentage of the investee’s shares. The net income or loss is included in other income (expense).	

Investment Gains (Losses)	  	Page 23	

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

 	  	June 30	 	 	March 31	 	 	December 31	 	 	December 31	 	
 	  	2011	 	 	2011	 	 	2010	 	 	2009	 	
Total short-term debt	  	$	1,400	  	 	$	1,401	  	 	$	1,300	  	 	$	161	  	
Total long-term debt	  	 	3,360	  	 	 	3,358	  	 	 	3,358	  	 	 	3,158	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total debt	  	$	4,760	  	 	$	4,759	  	 	$	4,658	  	 	$	3,319	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total trust preferred securities	  	$	309	  	 	$	309	  	 	$	309	  	 	$	309	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total shareholders’ equity	  	$	24,113	  	 	$	23,376	  	 	$	22,974	  	 	$	19,667	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total capitalization	  	$	29,182	  	 	$	28,444	  	 	$	27,941	  	 	$	23,295	  	
Tangible capital (1)	  	$	24,324	  	 	$	23,715	  	 	$	23,277	  	 	$	19,364	  	
Leverage ratios	  				 				 				 				
Debt/ total capitalization	  	 	16.3	% 	 	 	16.7	% 	 	 	16.7	% 	 	 	14.2	% 	
Debt plus trust preferred securities/ total capitalization	  	 	17.4	% 	 	 	17.8	% 	 	 	17.8	% 	 	 	15.6	% 	
Debt/ tangible capital	  	 	19.6	% 	 	 	20.1	% 	 	 	20.0	% 	 	 	17.1	% 	
Debt plus trust preferred securities/ tangible capital	  	 	20.8	% 	 	 	21.4	% 	 	 	21.3	% 	 	 	18.7	% 	
 
(1)	Tangible capital is equal to total capitalization less goodwill and other intangible assets.	

Capital Structure	  	Page 24	

					
	 	ACE Limited
Debt, Trust Preferred, and Credit Facilities
(in millions of U.S. dollars)
(Unaudited)	 		
 
June 30, 2011

   	  	Par Amount
Outstanding	 	  	Carrying value	 	  	Coupon	 	  	Maturity Date	
Debt and Trust Preferred	  				  				  				  		
Repurchase Agreement (1)	  	$	150	  	  	$	150	  	  	 	0.18%	  	  	July 21, 2011	
Repurchase Agreements	  	$	100	  	  	$	100	  	  	 	0.14%	  	  	August 2, 2011	
Repurchase Agreement	  	$	300	  	  	$	300	  	  	 	0.16%	  	  	August 10, 2011	
Repurchase Agreements	  	$	450	  	  	$	450	  	  	 	0.22%	  	  	September 6, 2011	
Repurchase Agreement	  	$	10	  	  	$	10	  	  	 	0.18%	  	  	September 15, 2011	
Repurchase Agreements	  	$	390	  	  	$	390	  	  	 	0.19%	  	  	October 6, 2011	
ACE INA Holdings Inc. Senior Notes	  	$	500	  	  	$	500	  	  	 	5.88%	  	  	June 15, 2014	
ACE INA Holdings Inc. Senior Notes	  	$	450	  	  	$	449	  	  	 	5.60%	  	  	May 15, 2015	
ACE INA Holdings Inc. Senior Notes	  	$	700	  	  	$	699	  	  	 	2.60%	  	  	November 23, 2015	
ACE INA Holdings Inc. Senior Notes	  	$	500	  	  	$	500	  	  	 	5.70%	  	  	February 15, 2017	
ACE INA Holdings Inc. Senior Notes	  	$	300	  	  	$	300	  	  	 	5.80%	  	  	March 15, 2018	
ACE INA Holdings Inc. Senior Notes	  	$	500	  	  	$	500	  	  	 	5.90%	  	  	June 15, 2019	
ACE INA Holdings Inc. Debentures	  	$	100	  	  	$	100	  	  	 	8.88%	  	  	August 15, 2029	
ACE Capital Trust II Preferred Securities	  	$	309	  	  	$	309	  	  	 	9.70%	  	  	April 1, 2030	
ACE INA Holdings Inc. Senior Notes	  	$	300	  	  	$	299	  	  	 	6.70%	  	  	May 15, 2036	
Other	  	$	13	  	  	$	13	  	  				  		
	  	 	 	 	  	 	 	 	  				  		
	  	$	5,072	  	  	$	5,069	  	  				  		

 	  	Commitment	 	  	Usage	 	  	 	 	  	Date	
Credit Facilities	  				  				  				  		
Syndicated Letter of Credit Facility	  	$	1,000	  	  	$	518	  	  				  	November 8, 2012	
Revolving Credit / LOC Facility	  	$	500	  	  	$	55	  	  				  	November 8, 2012	
Bilateral Letter of Credit Facility	  	$	500	  	  	$	500	  	  				  	September 20, 2014	
Funds at Lloyds Capital Facilities	  	$	400	  	  	$	377	  	  				  	December 31, 2015	
	  	 	 	 	  	 	 	 	  				  		
	  	$	2,400	  	  	$	1,450	  	  				  		

(1)	Subsequent to June 30, 2011, this repurchase agreement was repaid.	

Capital Structure 2	  	Page 25	

					
	 	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 June 30	 	 	Six months ended June 30	 	
 	  	2011	 	 	2010	 	 	2011	 	 	2010	 	
Numerator	  				 				 				 				
Income to common shares, excl. net realized gains (losses) (1)	  	$	686	  	 	$	688	  	 	$	954	  	 	$	1,267	  	
Net realized gains (losses), net of income tax	  	 	(79	) 	 	 	(11	) 	 	 	(88	) 	 	 	165	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income available to the holders of common shares	  	$	607	  	 	$	677	  	 	$	866	  	 	$	1,432	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Rollforward of Common Shares Outstanding	  				 				 				 				
Shares - beginning of period	  	 	337,173,864	  	 	 	338,610,718	  	 	 	334,942,852	  	 	 	336,524,657	  	
Issued under employee stock purchase plan	  	 	103,472	  	 	 	—  	  	 	 	199,751	  	 	 	118,172	  	
Shares (cancelled) granted	  	 	(63,810	) 	 	 	(32,891	) 	 	 	1,196,657	  	 	 	1,754,034	  	
Issued for option exercises	  	 	698,798	  	 	 	177,777	  	 	 	1,573,064	  	 	 	358,741	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Shares - end of period	  	 	337,912,324	  	 	 	338,755,604	  	 	 	337,912,324	  	 	 	338,755,604	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Denominator	  				 				 				 				
Weighted average shares outstanding	  	 	338,920,580	  	 	 	339,975,261	  	 	 	338,021,487	  	 	 	339,202,374	  	
Effect of other dilutive securities	  	 	2,768,388	  	 	 	1,268,395	  	 	 	2,596,909	  	 	 	1,185,944	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Adj. wtd. avg. shares outstanding and assumed conversions	  	 	341,688,968	  	 	 	341,243,656	  	 	 	340,618,396	  	 	 	340,388,318	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Basic earnings per share	  				 				 				 				
Income excluding net realized gains (losses) (1)	  	$	2.02	  	 	$	2.02	  	 	$	2.82	  	 	$	3.73	  	
Net realized gains (losses), net of income tax	  	 	(0.23	) 	 	 	(0.03	) 	 	 	(0.26	) 	 	 	0.49	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income	  	$	1.79	  	 	$	1.99	  	 	$	2.56	  	 	$	4.22	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Diluted earnings per share	  				 				 				 				
Income excluding net realized gains (losses) (1)	  	$	2.01	  	 	$	2.01	  	 	$	2.80	  	 	$	3.72	  	
Net realized gains (losses), net of income tax	  	 	(0.24	) 	 	 	(0.03	) 	 	 	(0.26	) 	 	 	0.49	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income	  	$	1.77	  	 	$	1.98	  	 	$	2.54	  	 	$	4.21	  	

(1)	See Non-GAAP Financial Measures.	

Earnings per share	  	Page 26	

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

 	  	2Q-11	 	 	1Q-11	 	 	4Q-10	 	  	3Q-10	 	 	2Q-10	 	  	YTD
2011	 	 	YTD
2010	 	  	Full Year
2010	 	
Net income, as reported	  	$	607	  	 	$	259	  	 	$	1,001	  	  	$	675	  	 	$	677	  	  	$	866	  	 	$	1,432	  	  	$	3,108	  	
Net realized gains (losses)	  	 	(73	) 	 	 	(45	) 	 	 	305	  	  	 	(50	) 	 	 	9	  	  	 	(118	) 	 	 	177	  	  	 	432	  	
Net realized gains (losses) in other income (expense) (1)	  	 	2	  	 	 	34	  	 	 	17	  	  	 	39	  	 	 	3	  	  	 	36	  	 	 	13	  	  	 	69	  	
Income tax expense (benefit) on net realized gains (losses)	  	 	8	  	 	 	(2	) 	 	 	23	  	  	 	2	  	 	 	23	  	  	 	6	  	 	 	25	  	  	 	50	  	
	  	 	 	 	 	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	
Income excluding net realized gains (losses)	  	$	686	  	 	$	268	  	 	$	702	  	  	$	688	  	 	$	688	  	  	$	954	  	 	$	1,267	  	  	$	2,657	  	

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

Reconciliation Non-GAAP	  	Page 27	

					
	 	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

 	  	June 30
2011	 	 	March 31
2011	 	 	December 31
2010	 	 	June 30
2010	 	
Shareholders’ equity	  	$	24,113	  	 	$	23,376	  	 	$	22,974	  	 	$	21,410	  	
Less: goodwill and other intangible assets	  	 	4,858	  	 	 	4,729	  	 	 	4,664	  	 	 	3,836	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Numerator for tangible book value per share	  	$	19,255	  	 	$	18,647	  	 	$	18,310	  	 	$	17,574	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Denominator	  	 	337,912,324	  	 	 	337,173,864	  	 	 	334,942,852	  	 	 	338,755,604	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Book value per common share	  	$	71.36	  	 	$	69.33	  	 	$	68.59	  	 	$	63.20	  	
Tangible book value per common share	  	$	56.98	  	 	$	55.31	  	 	$	54.66	  	 	$	51.88	  	
					
Reconciliation of Book Value	  				 				 				 				
					
Shareholders’ equity, beginning of quarter	  	$	23,376	  	 	$	22,974	  	 	$	22,845	  	 	$	20,636	  	
Income excluding net realized gains (losses)	  	 	686	  	 	 	268	  	 	 	702	  	 	 	688	  	
Net realized gains (losses), net of tax	  	 	(79	) 	 	 	(9	) 	 	 	299	  	 	 	(11	) 	
Net unrealized gains (losses), net of tax	  	 	151	  	 	 	24	  	 	 	(569	) 	 	 	282	  	
Repurchase of shares	  	 	—  	  	 	 	—  	  	 	 	(303	) 	 	 	(115	) 	
Dividend declared on common shares	  	 	(119	) 	 	 	(113	) 	 	 	(113	) 	 	 	(113	) 	
Cumulative translation, net of tax	  	 	56	  	 	 	168	  	 	 	47	  	 	 	—  	  	
Pension liability	  	 	—  	  	 	 	(4	) 	 	 	6	  	 	 	1	  	
Other (1)	  	 	42	  	 	 	68	  	 	 	60	  	 	 	42	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
	  	$	24,113	  	 	$	23,376	  	 	$	22,974	  	 	$	21,410	  	

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

Reconciliation Book Value	  	Page 28	

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

 	  	2Q-11	 	 	1Q-11	 	 	4Q-10	 	 	3Q-10	 	 	2Q-10	 	 	YTD
2011	 	 	YTD
2010	 	 	Full Year
2010	 	
Net income	  	$	607	  	 	$	259	  	 	$	1,001	  	 	$	675	  	 	$	677	  	 	$	866	  	 	$	1,432	  	 	$	3,108	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net unrealized appreciation (depreciation) on investments	  				 				 				 				 				 				 				 				
Unrealized appreciation (depreciation) on investments	  	 	303	  	 	 	66	  	 	 	(497	) 	 	 	953	  	 	 	487	  	 	 	369	  	 	 	1,070	  	 	 	1,526	  	
Reclassification adjustment for net realized (gains) losses included in net income	  	 	(78	) 	 	 	(56	) 	 	 	(286	) 	 	 	(120	) 	 	 	(97	) 	 	 	(134	) 	 	 	(226	) 	 	 	(632	) 	
Change in cumulative translation adjustments	  	 	69	  	 	 	232	  	 	 	66	  	 	 	186	  	 	 	(169	) 	 	 	301	  	 	 	(259	) 	 	 	(7	) 	
Change in minimum pension liability	  	 	1	  	 	 	(6	) 	 	 	9	  	 	 	(6	) 	 	 	2	  	 	 	(5	) 	 	 	8	  	 	 	11	  	
Income tax (expense) benefit related to other comprehensive income items	  	 	(88	) 	 	 	(48	) 	 	 	192	  	 	 	(197	) 	 	 	(55	) 	 	 	(136	) 	 	 	(122	) 	 	 	(127	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Other comprehensive income	  	 	207	  	 	 	188	  	 	 	(516	) 	 	 	816	  	 	 	168	  	 	 	395	  	 	 	471	  	 	 	771	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Comprehensive income	  	$	814	  	 	$	447	  	 	$	485	  	 	$	1,491	  	 	$	845	  	 	$	1,261	  	 	$	1,903	  	 	$	3,879	  	

			
Comprehensive Income	  	Page 29	

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

Glossary	  	Page 30