ACE Limited Reports September 30, 1999 Quarter Earnings

ACE Limited (NYSE: ACL) today reported income excluding net realized gains (losses) and non-recurring expenses for the fiscal 1999 third quarter ended September 30, 1999 of $72.5 million, or $0.37 per share, compared with $108.6 million, or $0.55 per share, for the same quarter in fiscal 1998. Net income for the fiscal 1999 third quarter was $14.8 million, or $0.08 per share, compared with $13.5 million, or $0.07 per share, for the same quarter last year. Earnings per share calculations above are based on the weighted average number of shares calculated in accordance with FAS 128 on a diluted basis. The fully diluted book value per share of the company at September 30, 1999 was $19.72.

On July 2, 1999, ACE completed the acquisition of the international and U.S. property and casualty businesses of CIGNA Corporation ("ACE INA") and accordingly, these consolidated financial results include the results of ACE INA from July 2, 1999, the date of acquisition.

Also on July 2, 1999, ACE announced it was changing its fiscal year-end from September 30 to December 31. This change was implemented retroactively to December 31, 1998 so that the 1999 fiscal year will be the twelve-month period ending December 31, 1999. This change has been reflected in this quarter ended September 30, 1999. As a result, the company has reported results for the three months ended September 30, 1999 and 1998 and for the nine months ended September 30, 1999 and 1998.

Commenting on the quarterly results, Brian Duperreault, chairman, president and chief executive officer of ACE noted: "Together with the rest of the insurance industry, ACE incurred losses resulting from a large number of catastrophic events in the third quarter. As previously announced, the effect on our net operating income for the quarter from catastrophic events was approximately $34.0 million after taxes. In addition, ACE recognized $3.9 million in one-time charges related to the acquisition of ACE INA. Excluding these events, income excluding net realized gains (losses) for the quarter, would have been $0.54 per share."

Mr. Duperreault continued: "We are pleased to include the results of the ACE INA Group for the first time. We are extremely satisfied with the positive changes that have taken place at ACE INA in the first three months and pleased that they have already contributed to the results of the ACE Group."

Gross premiums written during the quarter increased by 387.1 percent to $1.5 billion, compared with $317.0 million for the comparable quarter last year.

Net premiums written during the quarter increased 414.8 percent to $910.9 million compared with $177.0 million for the same quarter last year. Net premiums earned during the quarter were up 330.2 percent to $952.9 million from $221.5 million in the same quarter last year.

Gross premiums written for the nine months of fiscal 1999 were $2.5 billion compared to $1.0 billion for the same period last year, an increase of 140.5 percent.

For the nine months of fiscal 1999, net premiums written increased 125.1 percent to $1.6 billion compared to $730.1 million for the nine months of fiscal 1998. Net premiums earned for the nine months ended September 30, 1999 were $1.5 billion compared with $691.3 million for the same period last year, a 122.6 percent increase.

Net investment income, excluding net realized gains (losses), was $163.1 million for the fiscal 1999 third quarter, compared with $89.3 million for the same period last year, an 82.6 percent increase. For the nine months of fiscal 1999, net investment income, excluding net realized gains (losses) was $334.3 million compared with $260.6 million for the same period last year, a 28.3 percent increase. During the fiscal 1999 third quarter, ACE had net realized losses of $53.8 million compared with net realized losses of $54.2 million for the same quarter last year. For the nine months ended September 30, 1999, net realized losses were $11.2 million, compared with net realized gains of $160.9 million for the first three quarters of fiscal 1998.

The ACE Group of Companies provides insurance and reinsurance for a diverse group of clients. The company conducts its business on a global basis with operating subsidiaries in nearly 50 countries. Additional information can be found at: www.acelimited.com.

Application of the Safe Harbor of the Private Securities Litigation Reform Act of 1995:
Any forward-looking statements made in this press release reflect the Company's current views with respect to future events and financial performance and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements involve risks and uncertainties which may cause actual results to differ from those set forth in these statements. ACE's forward-looking statements could be affected by the length of time it takes to integrate the ACE INA businesses and achieve contemplated cost savings, the levels of new and renewal business achieved, market acceptance of ACE's diversification and market conditions affecting ACE's investments. Also, competition in the industry, the frequency of unpredictable catastrophic events, actual loss experience and economic, regulatory, insurance and reinsurance business conditions and other factors identified in the Company's filings with the Securities and Exchange Commission could affect the forward-looking statements contained in this press release. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the dates on which they are made. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

ACE Limited Summary Consolidated Financial Data (in thousands of U.S. dollars, except share and per share data)
	Three Months Ended September 30		Nine Months Ended September 30
	1999	1998	1999	1998
*Operations Data:*
Gross premiums written	$1,544,458	$317,053	$2,488,952	$1,034,703
Net premiums written	910,904	176,959	1,643,838	730,126
Net premiums earned	952,951	221,532	1,538,489	691,275
Net investment income	163,060	89,288	334,338	260,582
Loss and loss expenses	632,910	118,624	1,045,262	394,637
Policy acquisition costs	137,681	24,001	203,505	80,826
Administrative expenses	195,332	42,122	291,131	100,237
Amortization of goodwill	17,474	4,336	26,408	10,563
Interest expense	44,068	4,761	52,745	15,978
Other non-insurance expenses, net	2,932	-	2,932	-
Income tax expense	13,149	8,380	22,799	27,588
Income excluding net realized gains (losses) and non-recurring expenses	72,465	108,596	228,045	322,028
Non-recurring expenses (net of income tax)	(3,900)	(40,912)	(3,900)	(44,979)
Income excluding net realized gains (losses)	68,565	67,684	224,145	277,049
Net realized gains (losses) (net of income tax)	(53,772)	(54,172)	(11,211)	160,892
Net income	$ 14,793	$ 13,512	$ 212,934	$ 437,941
*(Basic EPS under FAS 128):*
Earnings per share excluding net realized gains (losses) and non-recurring expenses	$0.37	$0.56	$1.18	$1.72
Earnings per share excluding net realized gains (losses)	$0.35	$0.35	$1.16	$1.48
Earnings per share	$0.08	$0.07	$1.10	$2.34
Weighted average shares outstanding	194,061,171	193,539,724	193,935,790	187,341,947
*(Diluted EPS under FAS 128):*
Earnings per share excluding net realized gains (losses) and non-recurring expenses	$0.37	$0.55	$1.16	$1.68
Earnings per share excluding net realized gains (losses)	$0.35	$0.34	$1.14	$1.45
Earnings per share	$0.08	$0.07	$1.08	$2.29
Weighted average shares outstanding	196,072,652	197,771,488	196,917,128	191,492,643

ACE Limited Consolidated Supplementary Information (in millions of U.S. dollars)
	Three Months Ended September 30		Nine Months Ended September 30
	1999	1998	1999	1998
Gross Premiums Written
ACE Bermuda	$ 120.9	$101.6	$ 422.0	$ 394.1
ACE Global Markets	183.4	115.0	530.5	356.4
Tempest Re	31.3	32.9	193.8	124.0
ACE USA	746.9	67.5	880.7	160.2
ACE International	462.0	-	462.0	-
Total	$ 1,544.5	$ 317.0	$ 2,489.0	$ 1,034.7
Net Premiums Written
ACE Bermuda	$ 97.1	$ 64.1	$ 335.8	$ 302.1
ACE Global Markets	110.4	76.4	376.6	255.9
Tempest Re	(1.4)	7.1	159.0	93.6
ACE USA	373.0	29.4	440.6	78.5
ACE International	331.8	-	331.8	-
Total	$ 910.9	$ 177.0	$ 1,643.8	$ 730.1
Net Premiums Earned
ACE Bermuda	$ 121.2	$ 81.2	$ 390.1	$ 280.2
ACE Global Markets	99.8	71.7	289.0	217.1
Tempest Re	39.0	46.5	116.5	123.2
ACE USA	342.7	22.1	392.7	70.8
ACE International	350.2	-	350.2	-
Total	$ 952.9	$ 221.5	$ 1,538.5	$ 691.3

ACE Limited
Summary Consolidated Financial Data
(in thousands of U.S. dollars, except per share data)

September 30,
1999 December 31,
1998

Balance Sheet Data:

Assets

Fixed maturities available for sale, at fair value (amortized cost $9,478,887 and $4,784,412)
$ 9,338,437
$4,866,366

Equity securities, at fair value (cost $749,461 and $196,375)

756,102

220,843

Short-term investments, at fair value (amortized cost $670,595 and $757,788) 667,800 757,804

Other investments, at fair value (cost $366,779 and $128,119) 366,382 129,331

Cash
735,780

240,556

Total investments and cash
$11,864,501

$6,214,900

Insurance and reinsurance balances receivable
2,318,832

347,810

Accounts and notes receivable
564,768

-

Reinsurance recoverable
8,924,000

1,159,270

Deferred acquisition costs
374,251

67,502

Goodwill
2,664,886

535,920

Deferred tax assets
977,273

42,796

Other assets
1,655,672

466,107

Total assets
$ 29,344,183

$ 8,834,305

Liabilities

Unpaid losses and loss expenses
$17,198,095

$3,678,269

Unearned premiums
2,128,389

705,712

Insurance and reinsurance balances payable
1,493,248

72,993

Contract holder deposit funds
196,338

-

Accounts payable, accrued expenses and other liabilities
1,565,131

217,754

Short-term debt
1,449,279

-

Long-term debt
1,049,334

250,000

Trust preferred securities
400,000

-

Total liabilities
$ 25,479,814

$ 4,924,728

Commitments and contingencies

Shareholders’ equity

Ordinary shares ($0.041666667 par value, 300,000,000 shares authorized; 194,063,128 and 193,687,126 shares issued and outstanding)

$ 8,086

$ 8,070

Additional paid-in capital
1,773,825

1,767,188

Unearned stock grant compensation
(10,889)

(15,087)

Retained earnings
2,193,461

2,040,664

Accumulated other comprehensive (loss) income
(100,114 )

108,742

Total shareholders’ equity
$ 3,864,369

$ 3,909,577

Total liabilities and shareholders’ equity
$ 29,344,183

$ 8,834,305

ACE Limited
Supplemental Information
ACE INA Holdings
July 2, 1999 and September 30, 1999
(in thousands of U.S. dollars)

July 2,
1999 September 30,
1999

ACE INA Excl. Atlanta ACE Atlanta ACE INA Incl. Atlanta ACE INA Incl. Atlanta

Balance Sheet Data:

Assets

Fixed maturities available for sale, at fair value $ 5,708,337 $ 764,613 $ 6,472,950 $ 6,161,144

Equity securities, at fair value 596,267 - 596,267 584,725

Short-term investments, at fair value 23,263 61,021 84,284 495,710

Other investments 40,648 11,024 51,672 52,593

Cash 858,337 8,236 866,573 413,798

Total investments and cash $ 7,226,852 $ 844,894 $ 8,071,746 $ 7,707,970

Insurance and reinsurance balances receivable 1,616,182 51,248 1,667,430 1,915,628

Accounts and notes receivable 565,360 - 565,360 564,768

Reinsurance recoverable 7,076,959 698,308 7,775,267 8,335,957

Deferred acquisition costs 287,953 14,357 302,310 304,528

Goodwill 2,149,176 12,980 2,162,156 2,148,578

Deferred tax assets 898,372 59,500 957,872 983,155

Other assets 893,431 117,869 1,011,300 1,126,425

Total assets $ 20,714,285 $ 1,799,156 $ 22,513,441 $ 23,087,009

Liabilities

Unpaid losses and loss expenses $13,117,576 $1,197,341 $14,314,917 $14,698,525

Unearned premiums 1,251,646 129,963 1,381,609 1,452,941

Insurance and reinsurance balances payable 1,149,582 22,284 1,171,866 1,353,098

Contract holder deposit funds 187,430 - 187,430 196,338

Accounts payable, accrued expenses and other liabilities 1,554,049 103,393 1,657,442 1,418,027

Short-term debt 1,604,002 - 1,604,002 1,024,239

Long-term debt - 250,000 250,000 1,049,334

Trust preferred securities 400,000 - 400,000 400,000

Total liabilities $ 19,264,285 $ 1,702,981 $ 20,967,266 $ 21,592,502

Shareholders’ equity $ 1,450,000 $ 96,175 $ 1,546,175 $ 1,494,507

Total liabilities and shareholders’ equity $ 20,714,285 $ 1,799,156 $ 22,513,441 $ 23,087,009

September 30, 1999 - William Loschert Moves to Non-Executive Position
William Loschert, currently Chairman of ACE Global Markets Limited, a subsidiary of ACE Limited, will move from an executive role to a non-executive position from 1st October 1999. Mr. Loschert will be Non-Executive Chairman of ACE Underwriting Agencies Ltd., the managing agency for ACE's single syndicate, Syndicate 2488, for the 2000 year of account.

August 16, 1999 - ACE USA Names Frank McNamee Senior VP of Marketing
ACE USA has appointed Francis J. McNamee as senior vice president of Marketing at ACE USA. In this role, Mr. McNamee is responsible for producer relations and management, distribution and marketing activities for ACE USA.

August 2, 1999 - ACE USA Names Susan Woodward SVP of Special Programs
ACE USA has appointed Susan Woodward senior vice president, Special Programs. In this role, she will oversee group programs and specialty products within the ACE USA Diversified Products division. Her business will include Commercial Programs, Consumer Products, and Sports and Leisure programs. Woodward, who has more than 25 years' experience in the insurance industry, has been with CIGNA Property & Casualty, which was acquired by ACE Limited on July 2, 1999, for the past six years.

July 28, 1999 - ACE Europe Appoints Chief Operating Officer
ACE Bermuda's International Representative Office Announces Senior Appointment
ACE Europe, a subsidiary of ACE INA Holdings Inc., a member of the ACE Group of Companies, represented by ACE Limited, announced the appointment of Michael Lange as Chief Operating Officer. Stephen French has been promoted from Vice President to Senior Vice President of ACE's International Representative Office, replacing Michael Lange in that position.

July 28, 1999 - ACE USA Names Bill Curcio to Head Special Risk Facilities
ACE USA has appointed William N. Curcio, a 22-year veteran of the large-risk and national accounts marketplace, as president of ACE USA Special Risk Facilities. Mr. Curcio will be responsible for casualty lines aimed at Fortune 1000 and large-risk customers and related lines, including risk financing and other financial products; multi-year, multi-line integrated Risk Solutions programs and combined risk programs.

July 26, 1999 - ACE Global Markets Announces The Outcome Of The Proposed Syndicate Merger For The 2000 Year Of Account
ACE Global Markets Limited, a subsidiary of ACE Limited, announced Lloyd's approval of the proposal to merge Syndicates 219, 488 and 960 into Syndicate 2488 for the 2000 Year of Account. The merger was approved by The Council of Lloyd's and will become effective on August 19, 1999.

July 19, 1999 - ACE USA Names Elaine Trischetta to Head Professional Risk Services Division
ACE USA has named Elaine Trischetta as executive vice president, Professional Risk Services Division. In this new position, Ms. Trischetta is responsible for several business portfolios including D&O, E&O, Financial Institutions, Surety and Specialty Products.

July 19, 1999 - ACE USA Names Mark Bender Senior VP of Administration
ACE USA has appointed Mark Bender as senior vice president of Administration. In this role, Mr. Bender is responsible for real estate, leasing, and vendor contracts, in addition to risk management, security, fleet administration, and various other operations for the U.S.-based unit of the ACE Group of Companies.

July 12, 1999 - ACE USA Power Products Launches Second-Generation PowerBacker System Protection
ACE USA Power Products recently launched its second-generation PowerBacker insurance product, PowerBacker System Protection. The new product is designed to provide higher limits of coverage - up to $100 million - to protect against simultaneous unplanned outages or derates among the power units of large, investor-owned utilities and other large power generation owners.

Contact Information

Investor Contact:
Helen M. Wilson
(441) 299-9283

Media Contact:
Wendy Davis Johnson
(441) 299-9347