ACE Limited (NYSE: ACE) will host its fourth quarter, year-end earnings conference call and webcast on Thursday, February 3, 2005 beginning at 8:30 a.m. EST.   The call is available via live and archived webcast at www.acelimited.com .   Please refer to our website in “Investor Information, Calendar of Events” for details.

If you are unable to listen to the live webcast, a replay of the call will be available from approximately 11:30 a.m. EST on Thursday, February 3, 2005 until Thursday, March 3, 2005.  To listen to the replay, dial: 1-877-519-4471 (in the United States ) or 1-973-341-3080 (international); passcode 5527078.

The ACE Group of Companies is a global leader in insurance and reinsurance serving a diverse group of clients.   A component of the Standard & Poor’s 500 stock index, The ACE Group conducts its business on a worldwide basis with operating subsidiaries in approximately 50 countries.   Additional information can be found at: www.acelimited.com .

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¹ Non-GAAP Financial Measures:

Income (loss) excluding net realized gains (losses) and the tax effect of net realized gains (losses) is a common performance measurement.   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) because the amount of these gains (losses) is heavily influenced by, and fluctuates in part according to, the availability of market opportunities.  

Underwriting income is calculated by subtracting losses and loss expenses, life and annuity 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).   We believe the use of these measures enhances the understanding of our results of operations by highlighting the underlying profitability of our insurance business.

Income (loss) excluding net realized gains (losses), A&E and catastrophe losses is presented because those losses are deemed to be significant to the quarter and the year end.   The separate presentation is useful to understand the impact of these factors on our financial results and how management evaluates the Company’s financial performance.

These measures should not be viewed as a substitute for net income determined in accordance with generally accepted accounting principles (GAAP).

² Calculated using income excluding net realized gains (losses).

³ Diluted book value per ordinary share is ordinary shareholders’ equity and net proceeds from assumed conversions of outstanding in-the-money options divided by the sum of shares outstanding and the number of options assumed issued.

Cautionary Statement Regarding Forward-Looking Statements :

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 materially from those set forth in these statements.   For example, the Company’s forward-looking statements could be affected by competition, pricing and policy term trends, the levels of new and renewal business achieved, market acceptance, changes in demand, the frequency of unpredictable catastrophic events, actual loss experience, uncertainties in the reserving or settlement process, new theories of liability, judicial, legislative and other governmental   developments, litigation tactics, the amount and timing of reinsurance recoverable, actual market developments, rating agency action, possible terrorism or the outbreak and effects of war and economic, political, regulatory, insurance and reinsurance business conditions, as well as management’s response to these factors, and other factors identified in the Company’s filings with the Securities and Exchange Commission.   Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the dates on which they are made.   The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

(tables to follow)

  Ratios exclude life reinsurance business

* Includes both property and casualty reinsurance and life reinsurance