ACE Limited (NYSE: ACL) today reported income excluding net realized gains (losses) for the fiscal 1998 second quarter ended March 31, 1998 of $90.6 million, or $0.54 per share, compared with $80.3 million, or $0.46 per share, for the same quarter in fiscal 1997. Net income for the fiscal 1998 second quarter was $236.2 million, or $1.41 per share, compared with $77.9 million, or $0.45 per share, for the same quarter last year. All earnings per share figures for the current and prior fiscal year reflect the three-for-one split of the company's shares effective March 2, 1998. Earnings per share calculations are based on the weighted average number of shares calculated in accordance with FAS 128 on a diluted basis, which is equivalent to the primary earnings per share calculation under APB 15.

Brian Duperreault, chairman, president and chief executive officer of ACE commented: "This quarter we are pleased to include production from ACE USA, formerly The Westchester Specialty Group, Inc. As a result of contributions from ACE USA and our Lloyd's syndicates, we are able to demonstrate continued growth in both gross and net premium volume."

Mr. Duperreault continued: "This quarter, ACE increased its purchase of reinsurance to protect the company's individual business segments. While this impacts our net production, it also improves our overall risk profile."

Gross premiums written during the quarter increased by 19.4 percent to $242.9 million, compared with $203.3 million for the comparable quarter last year.

Net premiums written during the quarter increased 4.3 percent to $196.6 million compared with $188.6 million for the same period last year. Net premiums earned during the quarter were up 16.5 percent to $184.7 million from $158.6 million in the same quarter last year.

Gross premiums written for the first six months of fiscal 1998 were $413.1 million compared to $335.8 million for the same period last year, an increase of 23.0 percent.

For the first six months of fiscal 1998, net premiums written increased 8.2 percent to $323.6 million compared to $299.2 million for the first half of 1997. Net premiums earned for the six months ended March 31, 1998 were $352.6 million compared with $323.0 million for the same period last year, a 9.1 percent increase.

Net investment income, excluding net realized gains (losses), was $73.1 million for the fiscal 1998 second quarter, compared with $58.1 million for the same period last year, a 25.9 percent increase. For the first six months of fiscal 1998, net investment income, excluding net realized gains (losses) was $131.5 million compared with $117.8 million for the same period last year, an 11.6 percent increase. During the 1998 second quarter, ACE had net realized gains of $145.6 million, compared with a net realized loss of $2.3 million for the same quarter last year. For the six months ended March 31, 1998, net realized gains were $173.1 million, compared with net realized gains of $39.4 million for the first half of fiscal 1997.

The ACE Group of Companies provides insurance and reinsurance for a diverse group of international clients. Operating subsidiaries are based in Bermuda, the United States, the United Kingdom (Lloyd's), and the Republic of Ireland. At March 31, 1998, ACE Limited had approximately $2.8 billion in shareholders' equity and approximately $7.0 billion in assets.

Contact Information

Investor Contact: Helen M. Wilson (441) 299-9283 Media Contact: Wendy Davis Johnson (441) 299-9347