FOR IMMEDIATE RELEASE

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



      ACE Limited Evaluates Exposure in the Wake of Terrorist Attacks

         HAMILTON, Bermuda - September 12, 2001 - As ACE Limited (NYSE:
ACE) examined its levels of insurance and reinsurance exposure, the Company
joined the world community in condemning yesterday's acts of terrorism in
the United States.

         Brian Duperreault, chairman and chief executive officer of ACE
Limited, said: "The human toll is beyond comprehension. While we believe
that the lives of all ACE employees who worked near the World Trade Center
were spared, none of us has been left unscarred by this horrific series of
events."

         "We are assessing the impact on ACE, as we must, and we are in an
excellent position to weather this catastrophe. At the same time, the
safety, security and wellbeing of our employees are uppermost in our minds.
We are also reaching out in whatever way we can to assist those business
partners, families and friends whose lives have been changed forever."

         Mr. Duperreault said that an event of such unprecedented magnitude
would have a significant negative impact on the Company's third quarter
results.

         "As a result of these events, we estimate that third quarter net
operating income, after tax, will be reduced by approximately $400
million."

         Mr. Duperreault said that all ACE offices in the U.S., with the
exception of space occupied in the vicinity of the World Trade Center, will
be open for business on Thursday.

         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
materially from those set forth in these statements. Among other things,
the impact of the recent tragedy on the Company's financial results will
depend on the number of insureds and reinsureds affected by the disaster,
and the amount and timing of losses actually incurred and reported by
insureds and reinsureds. Also, competition in the industry, levels of new
and renewal business achieved, market acceptance, the frequency of
unpredictable catastrophic events and economic, market, 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.