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Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
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 TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB
MIC-Info: RSA-MD5,RSA,
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 j/bOpe+jN5Ootes4mYT9aw==

<SEC-DOCUMENT>0001181431-03-027024.txt : 20031021
<SEC-HEADER>0001181431-03-027024.hdr.sgml : 20031021
<ACCEPTANCE-DATETIME>20031021125850
ACCESSION NUMBER:		0001181431-03-027024
CONFORMED SUBMISSION TYPE:	4
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20031017
FILED AS OF DATE:		20031021

ISSUER:		

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			ACE LTD
		CENTRAL INDEX KEY:			0000896159
		STANDARD INDUSTRIAL CLASSIFICATION:	FIRE, MARINE & CASUALTY INSURANCE [6331]
		IRS NUMBER:				000000000
		STATE OF INCORPORATION:			D0
		FISCAL YEAR END:			1231

	BUSINESS ADDRESS:	
		STREET 1:		ACE BLDG
		STREET 2:		30 WOODBOURNE AVE
		CITY:			HAMILTON HM 08 BERMU
		STATE:			D0
		ZIP:			00000
		BUSINESS PHONE:		8092955200

	MAIL ADDRESS:	
		STREET 1:		P O BOX HM 1015
		CITY:			HAMITON BERMUDA
		STATE:			D0
		ZIP:			00000

REPORTING-OWNER:	

	OWNER DATA:	
		COMPANY CONFORMED NAME:			KRAMER DONALD
		CENTRAL INDEX KEY:			0001072523

	FILING VALUES:
		FORM TYPE:		4
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-11778
		FILM NUMBER:		03949343

	BUSINESS ADDRESS:	
		STREET 1:		ACE LTD
		STREET 2:		ACE BLDG 30 WOODBOURNE AVE HAMILTON BER
		BUSINESS PHONE:		4412955200

	MAIL ADDRESS:	
		STREET 1:		ACE LTD
		STREET 2:		ACE BLDG 30 WOODBOURNE AVE HAMILTON BER
</SEC-HEADER>
<DOCUMENT>
<TYPE>4
<SEQUENCE>1
<FILENAME>rrd20634.xml
<DESCRIPTION>FORM 4 - MAY, 2003
<TEXT>
<XML>
<?xml version="1.0"?><ownershipDocument>
    <schemaVersion>X0201</schemaVersion>

    <documentType>4</documentType><periodOfReport>2003-10-17</periodOfReport><notSubjectToSection16>0</notSubjectToSection16>
    <issuer>
        <issuerCik>0000896159</issuerCik>
        <issuerName>ACE LTD</issuerName>
        <issuerTradingSymbol>ACE</issuerTradingSymbol></issuer><reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001072523</rptOwnerCik>
            <rptOwnerName>KRAMER DONALD</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>C/O ACE LIMITED</rptOwnerStreet1>
            <rptOwnerStreet2>THE ACE BUILDING, 17 WOODBOURNE AVENUE</rptOwnerStreet2>
            <rptOwnerCity>HAMILTON</rptOwnerCity>
            <rptOwnerState></rptOwnerState>
            <rptOwnerZipCode>HM 08</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
            <reportingOwnerRelationship>
<isDirector>1</isDirector><isOfficer>1</isOfficer><isTenPercentOwner>0</isTenPercentOwner><isOther>0</isOther><officerTitle>Vice Chairman</officerTitle></reportingOwnerRelationship></reportingOwner><nonDerivativeTable><nonDerivativeTransaction><securityTitle><value>Ordinary Shares</value></securityTitle><transactionDate><value>2003-10-17</value></transactionDate><transactionCoding><transactionFormType>4</transactionFormType><transactionCode>M</transactionCode><equitySwapInvolved>0</equitySwapInvolved></transactionCoding><transactionAmounts><transactionShares><value>462730</value></transactionShares><transactionPricePerShare><value>7.4479</value></transactionPricePerShare><transactionAcquiredDisposedCode><value>A</value></transactionAcquiredDisposedCode></transactionAmounts><postTransactionAmounts><sharesOwnedFollowingTransaction><value>1037456</value></sharesOwnedFollowingTransaction></postTransactionAmounts><ownershipNature><directOrIndirectOwnership><value>D</value></directOrIndirectOwnership></ownershipNa
ture></nonDerivativeTransaction><nonDerivativeTransaction><securityTitle><value>Ordinary Shares</value></securityTitle><transactionDate><value>2003-10-17</value></transactionDate><transactionCoding><transactionFormType>4</transactionFormType><transactionCode>F</transactionCode><equitySwapInvolved>0</equitySwapInvolved></transactionCoding><transactionAmounts><transactionShares><value>90312</value></transactionShares><transactionPricePerShare><value>33.96</value></transactionPricePerShare><transactionAcquiredDisposedCode><value>D</value></transactionAcquiredDisposedCode></transactionAmounts><postTransactionAmounts><sharesOwnedFollowingTransaction><value>947144</value></sharesOwnedFollowingTransaction></postTransactionAmounts><ownershipNature><directOrIndirectOwnership><value>D</value></directOrIndirectOwnership></ownershipNature></nonDerivativeTransaction></nonDerivativeTable><derivativeTable><derivativeTransaction><securityTitle><value>Options to acquire Ordinary Shares</value></securityTitle><conversionOrExe
rcisePrice><value>7.4479</value></conversionOrExercisePrice><transactionDate><value>2003-10-17</value></transactionDate><transactionCoding><transactionFormType>4</transactionFormType><transactionCode>M</transactionCode><equitySwapInvolved>0</equitySwapInvolved></transactionCoding><transactionAmounts><transactionShares><value>462730</value></transactionShares><transactionPricePerShare><value>0.00</value><footnoteId id="F1"/></transactionPricePerShare><transactionAcquiredDisposedCode><value>D</value></transactionAcquiredDisposedCode></transactionAmounts><exerciseDate><value>1996-07-01</value></exerciseDate><expirationDate><value>2004-04-15</value></expirationDate><underlyingSecurity><underlyingSecurityTitle><value>Ordinary Shares</value></underlyingSecurityTitle><underlyingSecurityShares><value>462730</value></underlyingSecurityShares></underlyingSecurity><postTransactionAmounts><sharesOwnedFollowingTransaction><value>0</value><footnoteId id="F2"/></sharesOwnedFollowingTransaction></postTransactionAmounts><own
ershipNature><directOrIndirectOwnership><value>D</value></directOrIndirectOwnership></ownershipNature></derivativeTransaction></derivativeTable><footnotes><footnote id="F1">The options were granted to the reporting person pursuant to the ACE Limited 1995 Long-Term Incentive Plan.</footnote><footnote id="F2">Represents remaining options of the same tranche.</footnote></footnotes><ownerSignature><signatureName>Signed for Donald Kramer by Keith White pursuant to a power of attorney on file with the Securities and Exchange Commission</signatureName><signatureDate>2003-10-21</signatureDate></ownerSignature></ownershipDocument>



</XML>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
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