In an article on the possible use of the War Risk Exclusion Clause contained in many insurance policies, today's Wall Street Journal cited ACE Limited (NYSE: ACE) as not yet having disavowed its intention to invoke the War Clause. The article cited a spokeswoman who, at the time, said it was "too soon to tell". Unfortunately, the positioning of the ACE comment against the background of other comments mischaracterizes the position of ACE.
In a separate press release, ACE Limited noted that it expected to incur $400 million in net claims arising from this event. In making this estimate, ACE believed that the War Risk Exclusion was not an issue. The company fully intends to pay all of its claims. ACE has no intention of denying any claim on the basis of the War Exclusion.
The ACE Group of Companies provides insurance and reinsurance for a diverse group of clients. The ACE Group conducts its business on a global basis with operating subsidiaries in nearly 50 countries. Additional information can be found at www.acelimited.com.