8-K/A

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K/A

Current Report

Pursuant To Section 13 or 15 (d) of the

Securities Exchange Act of 1934

Date of Report (Date of earliest event reported) – March 22, 2006

ACE LIMITED

(Exact name of registrant as specified in its charter)

Cayman Islands (State or other jurisdiction) 1-11778 (Commission File Number) 98-0091805 (I.R.S. Employer of Incorporation Identification No.)

ACE Global Headquarters

17 Woodbourne Avenue

Hamilton HM 08 Bermuda

(Address of principal executive offices)

Registrant’s telephone number, including area code: (441) 295-5200

Not applicable

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02. Results of Operations and Financial Condition

A current report on Form 8-K was filed on January 31, 2006, containing the ACE Limited fourth quarter financial supplement. On March 22, 2006, ACE Limited revised its fourth quarter financial supplement to conform certain information to the financial statements included in Form 10-K for the year ended December 31, 2005, filed on March 16, 2006. The financial supplement is attached hereto as Exhibit 99.1, and is hereby incorporated herein by reference.

Item 9.01. Financial Statements, Pro Forma Financial Information and Exhibits.

(c) Exhibits

Exhibit Number	Description
99.1	Fourth Quarter 2005 Financial Supplement

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

ACE LIMITED
By:	/s/ Paul Medini
	Paul Medini Chief Accounting Officer

DATE: March 22, 2006

EXHIBIT INDEX

Number	Description	Method of Filing
99.1	Fourth Quarter 2005 Financial Supplement	Furnished herewith

EX-99.1

Exhibit 99.1

Investor Contact	This report is for informational purposes only. It should be read in conjunction with documents filed by ACE Limited with the Securities and Exchange Commission, including the most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q and Form 10-Q/A.
Helen M. Wilson
Phone: (441) 299-9283
Fax: (441) 292-8675 email: investorrelations@ace.bm	Cautionary Statement Regarding Forward-Looking Statements:
	Any forward-looking statements made in this financial supplement 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, such as statements concerning exposures, reserves and recoverables, could be affected by the frequency of unpredictable catastrophic events, actual loss experience, uncertainties in the reserving or settlement process, new theories of liability, judicial, legislative, regulatory and other governmental developments, litigation tactics and developments, investigation developments, the amount and timing of reinsurance receivable and credit developments among reinsurers.
	The Company’s forward-looking statements could also be affected by competition, pricing and policy term trends, the levels of new and renewal business achieved, market acceptance, changes in demand, actual market developments, rating agency action, possible terrorism or the outbreak and effects of war. 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 Financial Supplement Table of Contents

		Page
I.	Financial Highlights
	- Consolidated Financial Highlights	1
	- Consolidated Financial Highlights 2005 Excluding Catastrophe Loss Charges	2
	- Consolidated Financial Highlights 2004 Excluding A&E(1) and Catastrophe Loss Charges	3
II.	Consolidated Results
	- Consolidated Results - Consecutive Quarters	4-6
	- Summary Consolidated Balance Sheets	7
	- Consolidated Premiums by Line of Business	8
	- Consolidating Statement of Operations	9-10
	- Consolidating Schedule of Catastrophe Loss Charges	11-12
	- Loss Analysis	13-14
III.	Segment Results
	- Insurance-North American	15
	- Insurance-Overseas General	16-17
	- Global Reinsurance	18-19
	- Financial Services	20
	- Life Insurance and Reinsurance (2)	21
IV.	Balance Sheet Details
	- Loss Reserve Rollforward	22
	- Reinsurance Recoverable Analysis	23-26
	- Investment Portfolio	27-28
	- Net Realized and Unrealized Gains (Losses)	29
	- Capital Structure	30
	- Computation of Basic and Diluted Earnings Per Share	31
V.	Other Disclosures
	- Non-GAAP Financial Measures	32
	- Book Value per Ordinary Share	33
	- Comprehensive Income	34
	- Glossary	35

(1) Asbestos, environmental and other run-off loss charges (A&E).

(2) We have classified all the Life Insurance business previously included with Insurance - Overseas General and all the Life Reinsurance business previously included with Global Reinsurance into a new Life segment based on how we plan to manage the business. All prior periods presented have been amended for this new presentation.

ACE Limited Consolidated Financial Highlights (in millions of U.S. dollars, except share, per share data and ratios) (Unaudited)

	Three months ended December 31						% Change 4Q-05 vs. 4Q-04		Year ended December 31						% Change YTD-05 vs. YTD-04
	2005			2004					2005			2004
Gross premiums written	$	3,794		$	3,646		4	%	$	16,811		$	16,094		4	%
Net premiums written	$	2,628		$	2,641		0	%	$	11,792		$	11,496		3	%
Net premiums earned	$	2,859		$	2,881		-1	%	$	11,748		$	11,110		6	%
Net investment income	$	354		$	282		26	%	$	1,264		$	1,013		25	%
Net income (loss)	$	236		$	278		-15	%	$	1,028		$	1,153		-11	%
Income excluding net realized gains (losses)(1)	$	244		$	160		53	%	$	955		$	1,000		-5	%
Comprehensive income	$	127		$	398		-68	%	$	626		$	1,174		-47	%
Operating cash flow	$	809		$	868		-7	%	$	4,308		$	4,939		-13	%
Combined ratio
Loss and loss expense ratio		76.5	%		78.5	%				74.5	%		70.7	%
Underwriting and administrative expense ratio		25.5	%		26.1	%				25.1	%		25.7	%
Combined ratio		102.0	%		104.6	%				99.6	%		96.4	%
Annualized ROE*		8.9	%		6.5	%				8.9	%		10.9	%
Annualized ROE, excluding FAS 115*		9.2	%		7.0	%				9.3	%		11.7	%
Effective tax rate on income excluding net realized gains (losses)		8	%		-38	%				22	%		19	%
Diluted earnings per share
Income excluding net realized gains (losses)(1)	$	0.72		$	0.52		38	%	$	3.06		$	3.34		-8	%
Net income	$	0.69		$	0.93		-26	%	$	3.31		$	3.88		-15	%
Book value per ordinary share	$	34.81		$	32.65		7	%	$	34.81		$	32.65		7	%
Tangible book value per ordinary share	$	26.45		$	23.16		14	%	$	26.45		$	23.16		14	%
Weighted average basic ordinary shares outstanding		317.1			281.3					292.4			280.3
Weighted average diluted ordinary shares outstanding		323.4			286.0					297.3			285.5
Debt/ total capitalization		14.8	%		16.3	%				14.8	%		16.3	%

(1) See page 32 Non-GAAP Financial Measures.

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

Page 1

ACE Limited Consolidated Financial Highlights Excluding Catastrophe Loss Charges (in millions of U.S. dollars, except per share data and ratios) (Unaudited)

	Three months ended December 31, 2005									Year ended December 31, 2005
	As reported			Catastrophe loss charge			Adjusted (1)			As reported			Catastrophe loss charge			Adjusted (1)
Net premiums written	$	2,628		$	19		$	2,647		$	11,792		$	(44	)	$	11,748
Net premiums earned	$	2,859		$	15		$	2,874		$	11,748		$	(80	)	$	11,668
Losses and loss expenses	$	2,135		$	(360	)	$	1,775		$	8,571		$	(1,359	)	$	7,212
Income tax expense	$	4		$	71		$	75		$	273		$	230		$	503
Net income (loss)	$	236		$	304		$	540		$	1,028		$	1,049		$	2,077
Income excluding net realized gains (losses)(1)	$	244		$	304		$	548		$	955		$	1,049		$	2,004
Combined ratio
Loss and loss expense ratio		76.5	%		-12.6	%		63.9	%		74.5	%		-11.4	%		63.1	%
Underwriting and administrative expense ratio		25.5	%		0.1	%		25.6	%		25.1	%		0.2	%		25.3	%
Combined ratio		102.0	%		-12.5	%		89.5	%		99.6	%		-11.2	%		88.4	%
Effective tax rate on income excluding net realized gains (losses)		8	%		19	%		14	%		22	%		18	%		20	%
Diluted earnings per share
Income excluding net realized gains (losses)(1)	$	0.72		$	0.94		$	1.66		$	3.06		$	3.53		$	6.59
Net income (loss)	$	0.69		$	0.94		$	1.63		$	3.31		$	3.53		$	6.84
Weighted average basic ordinary shares outstanding		317.1						317.1			292.4						292.4
Weighted average diluted ordinary shares outstanding		323.4						323.4			297.3						297.3

(1) See page 32 Non-GAAP Financial Measures.

Page 2

ACE Limited Consolidated Financial Highlights Excluding A&E⁽²⁾ and Catastrophe Loss Charges (in millions of U.S. dollars, except per share data and ratios) (Unaudited)

	Three months ended December 31, 2004												Year ended December 31, 2004
	As reported			A&E(2) loss charge			Catastrophe loss charge			Adjusted (1)			As reported			A&E(2) loss charge			Catastrophe loss charge			Adjusted (1)
Net premiums written	$	2,641		$	—		$	—		$	2,641		$	11,496		$	—		$	—		$	11,496
Net premiums earned	$	2,881		$	—		$	—		$	2,881		$	11,110		$	—		$	11		$	11,121
Losses and loss expenses	$	2,216		$	(465	)	$	(31	)	$	1,720		$	7,690		$	(465	)	$	(499	)	$	6,726
Income tax expense (benefit)	$	(32	)	$	163		$	—		$	131		$	286		$	163		$	73		$	522
Net income	$	278		$	302		$	31		$	611		$	1,153		$	302		$	437		$	1,892
Income excluding net realized gains (losses)(1)	$	160		$	302		$	31		$	493		$	1,000		$	302		$	437		$	1,739
Combined ratio
Loss and loss expense ratio		78.5	%		-16.4	%		-1.1	%		61.0	%		70.7	%		-4.2	%		-4.6	%		61.9	%
Underwriting and administrative expense ratio		26.1	%		0.0	%		0.0	%		26.1	%		25.7	%		0.0	%		-0.1	%		25.6	%
Combined ratio		104.6	%		-16.4	%		-1.1	%		87.1	%		96.4	%		-4.2	%		-4.7	%		87.5	%
Effective tax rate on income excluding net realized gains (losses)		-38	%		35	%		0	%		19	%		19	%		35	%		14	%		22	%
Diluted earnings per share
Income excluding net realized gains (losses)(1)	$	0.52		$	1.06		$	0.11		$	1.69		$	3.34		$	1.06		$	1.53		$	5.93
Net income (loss)	$	0.93		$	1.06		$	0.11		$	2.10		$	3.88		$	1.06		$	1.53		$	6.47
Weighted average basic ordinary shares outstanding		281.3									281.3			280.3									280.3
Weighted average diluted ordinary shares outstanding		286.0									286.0			285.5									285.5

(1) See page 32 Non-GAAP Financial Measures.

(2) Asbestos, environmental and other run-off loss charges (A&E).

Page 3

ACE Limited Consolidated Results - Consecutive Quarters (in millions of U.S. dollars) (Unaudited)

	4Q-05			3Q-05			2Q-05			1Q-05			4Q-04			Full Year 2005			Full Year 2004
ACE Limited Consolidated
Property and Casualty(2)
Gross premiums written	$	3,757		$	3,989		$	4,138		$	4,320		$	3,560		$	16,204		$	15,544
Net premiums written		2,596			2,616			2,834			3,145			2,557			11,191			10,954
Net premiums earned		2,786			2,773			2,769			2,727			2,728			11,055			10,364
Losses and loss expenses		2,139			2,494			1,773			1,706			2,119			8,112			7,302
Policy acquisition costs		414			417			423			381			404			1,635			1,518
Administrative expenses		289			301			306			328			332			1,224			1,215
P&C underwriting income (loss)	$	(56	)	$	(439	)	$	267		$	312		$	(127	)	$	84		$	329
Financial Services underwriting income (loss)		—			(58	)		14			1			(3	)		(43	)		70
Life underwriting income excluding investment income		17			15			14			16			8			62			16
Net investment income		354			320			305			285			282			1,264			1,013
Net realized gains (losses)		(25	)		83			32			(14	)		130			76			197
Interest expense		46			43			43			42			43			174			183
Other (income) expense		4			(25	)		(6	)		(5	)		1			(32	)		3
Income tax expense (benefit)		4			15			128			126			(32	)		273			286
Net income (loss)	$	236		$	(112	)	$	467		$	437		$	278		$	1,028		$	1,153
Net realized gains (losses)		(25	)		83			32			(14	)		130			76			197
Tax expense (benefit) on net realized gains (losses)		(17	)		8			8			4			12			3			44
Income (loss) excluding net realized gains (losses)(1)	$	244		$	(187	)	$	443		$	455		$	160		$	955		$	1,000
% Change versus prior year period(2)
Property and Casualty net premiums written		2	%		-1	%		2	%		6	%		13	%		2	%		21	%
Property and Casualty net premiums earned		2	%		3	%		7	%		16	%		17	%		7	%		23	%
Property and Casualty net premiums written excluding CATS		2	%		1	%											3	%
Property and Casualty net premiums earned excluding CATS		2	%		5	%											7	%
Other ratios
Net premiums written/gross premiums written		69	%		66	%		68	%		73	%		72	%		69	%		70	%
Effective tax rate on income excluding net realized gains (losses)		8	%		-4	%		21	%		21	%		-38	%		22	%		19	%

(1) See page 32 Non-GAAP Financial Measures.

(2) Property and casualty excluding Financial Services and Life is presented to allow for comparison and analysis with earnings guidance. This is a non-GAAP measure.

Page 4

ACE Limited Consolidated Results - Consecutive Quarters - 2 (in millions of U.S. dollars, except share and per share data) (Unaudited)

	4Q-05			3Q-05			2Q-05			1Q-05			4Q-04			Full Year 2005			Full Year 2004
ACE Limited Consolidated
Combined ratio
Loss and loss expense ratio		76.5	%		92.6	%		64.4	%		63.5	%		78.5	%		74.5	%		70.7	%
Policy acquisition cost ratio		15.0	%		13.9	%		14.8	%		13.6	%		14.3	%		14.3	%		14.2	%
Administrative expense ratio		10.5	%		10.1	%		10.9	%		11.8	%		11.8	%		10.8	%		11.5	%
Combined ratio		102.0	%		116.6	%		90.1	%		88.9	%		104.6	%		99.6	%		96.4	%
	4Q-05			3Q-05			2Q-05			1Q-05			4Q-04			YTD 2005			YTD 2004
Property and Casualty (1)
Combined ratio (1)
Loss and loss expense ratio		76.8	%		90.0	%		64.0	%		62.5	%		77.7	%		73.4	%		70.5	%
Policy acquisition cost ratio		14.8	%		15.1	%		15.2	%		14.0	%		14.9	%		14.8	%		14.7	%
Administrative expense ratio		10.4	%		10.9	%		11.1	%		12.0	%		12.1	%		11.0	%		11.7	%
Combined ratio		102.0	%		116.0	%		90.3	%		88.5	%		104.7	%		99.2	%		96.9	%
Large losses and other items (1)
Asbestos, environmental and other run-off losses	$	—		$	—		$	—		$	—		$	465		$	—		$	465
Catastrophe and other large losses (before tax)	$	360		$	756		$	—		$	3		$	31		$	1,119		$	488
Prior period development - unfavorable (favorable)	$	25		$	27		$	27		$	29		$	105		$	108		$	111

(1) Property and casualty excluding Financial Services and Life is presented to allow for comparison and analysis with earnings guidance. See Financial Services schedule for details related to that segment.

Page 5

ACE Limited Consolidated Results - Consecutive Quarters - 3 (in millions of U.S. dollars) (Unaudited)

	3Q-04			2Q-04			1Q-04			Full Year 2003
ACE Limited Consolidated
Property and Casualty(1)
Gross premiums written	$	3,858		$	3,970		$	4,156		$	13,399
Net premiums written		2,645			2,792			2,960			9,052
Net premiums earned		2,686			2,593			2,357			8,453
Losses and loss expenses		2,104			1,635			1,444			5,283
Policy acquisition costs		384			381			349			1,272
Administrative expenses		300			293			290			1,099
P& C underwriting income (loss)	$	(102	)	$	284		$	274		$	799
Financial Services underwriting income (loss)		(11	)		26			58			58
Life underwriting income (loss) excluding investment income		4			2			2			(18	)
Net investment income		246			243			242			900
Net realized gains (losses)		(32	)		42			57			265
Interest expense		50			46			44			177
Other (income) expense		(14	)		(1	)		17			34
Income tax expense (benefit)		65			129			124			311
Net income (loss)	$	4		$	423		$	448		$	1,482
Net realized gains (losses)		(32	)		42			57			265
Tax expense (benefit) on net realized gains (losses)		1			10			21			32
Income excluding net realized gains (losses)(2)	$	37		$	391		$	412		$	1,249
Combined ratio
Loss and loss expense ratio		79.4	%		63.2	%		60.3	%		64.6	%
Policy acquisition cost ratio		13.8	%		14.3	%		14.2	%		14.0	%
Administrative expense ratio		10.8	%		11.1	%		12.4	%		12.4	%
Combined ratio		104.0	%		88.6	%		86.9	%		91.0	%
Property and Casualty (1)
Combined ratio (1)
Loss and loss expense ratio		78.3	%		63.1	%		61.2	%		62.5	%
Policy acquisition cost ratio		14.3	%		14.7	%		14.8	%		15.1	%
Administrative expense ratio		11.2	%		11.3	%		12.3	%		13.0	%
Combined ratio		103.8	%		89.1	%		88.3	%		90.6	%

(1) Property and casualty excluding Financial Services and Life is presented to allow for comparison and analysis with earnings guidance.

(2) See page 32 Non-GAAP Financial Measures.

Page 6

ACE Limited Summary Consolidated Balance Sheets (in millions of U.S. dollars, except per share data)

	December 31 2005		September 30 2005		June 30 2005		March 31 2005		December 31 2004
	(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)		(Audited)
Assets
Fixed maturities available for sale, at fair value	$	24,285	$	22,551	$	21,136	$	20,336	$	22,891
Fixed maturities held to maturity, at amortized cost		3,076		3,125		3,151		3,211		—
Equity securities, at fair value		1,507		1,436		1,380		1,351		1,265
Short-term investments		2,299		2,212		2,476		2,156		2,163
Other investments		755		651		628		622		606
Total investments		31,922		29,975		28,771		27,676		26,925
Cash		512		409		651		574		498
Securities lending collateral		1,723		1,438		958		1,255		1,059
Insurance and reinsurance balances receivable		3,343		3,508		3,728		3,695		3,255
Reinsurance recoverable		15,463		15,662		14,428		14,268		14,882
Deferred policy acquisition costs		930		970		990		1,000		944
Prepaid reinsurance premiums		1,346		1,441		1,434		1,427		1,355
Goodwill		2,703		2,703		2,703		2,695		2,700
Deferred tax assets		1,314		1,244		1,134		1,178		1,173
Investments in partially owned insurance companies		876		862		832		816		796
Other assets		2,308		2,333		2,494		2,425		2,596
Total assets	$	62,440	$	60,545	$	58,123	$	57,009	$	56,183
Liabilities
Unpaid losses and loss expenses	$	35,055	$	34,674	$	32,101	$	31,426	$	31,483
Unearned premiums		5,884		6,238		6,457		6,527		5,983
Future policy benefits for life and annuity contracts		521		521		517		507		509
Insurance and reinsurance balances payable		2,405		2,428		2,438		2,290		2,337
Deposit liabilities		350		331		347		302		343
Securities lending payable		1,723		1,438		958		1,255		1,059
Payable for investments purchased		701		710		785		630		507
Accounts payable, accrued expenses and other liabilities		1,569		1,554		1,613		1,694		1,710
Short-term debt		300		446		147		147		146
Long-term debt		1,811		1,564		1,849		1,849		1,849
Trust preferred securities		309		412		412		412		412
Total liabilities		50,628		50,316		47,624		47,039		46,338
Shareholders’ equity
Total shareholders’ equity, excl. AOCI		11,480		9,788		9,947		9,522		9,111
Accumulated other comprehensive income (AOCI)		332		441		552		448		734
Total shareholders’ equity		11,812		10,229		10,499		9,970		9,845
Total liabilities and shareholders’ equity	$	62,440	$	60,545	$	58,123	$	57,009	$	56,183
Book value per ordinary share (1)	$	34.81	$	33.51	$	34.51	$	32.76	$	32.65
Tangible book value per ordinary share (1)	$	26.45	$	24.14	$	25.13	$	23.38	$	23.16

(1) See page 32 Non-GAAP Financial Measures.

Page 7

ACE Limited Consolidated Premiums by Line of Business (in millions of U.S. dollars) (Unaudited)

	4Q-05			% of Total Consolidated		4Q-04		% of Total Consolidated		% Change 4Q-05 vs. 4Q-04		Full Year 2005		% of Total Consolidated		Full Year 2004		% of Total Consolidated		% Change 2005 vs. 2004
ACE Limited Consolidated
Net premiums written
Property and all other	$	618		23	%	$	708	27	%	-13	%	$	3,159	27	%	$	3,507	30	%	-10	%
Casualty		1,668		63	%		1,560	59	%	7	%		6,765	57	%		6,314	55	%	7	%
Personal accident		310		12	%		289	11	%	7	%		1,267	11	%		1,133	10	%	12	%
Total P&C		2,596		98	%		2,557	97	%	2	%		11,191	95	%		10,954	95	%	2	%
Life		67		3	%		57	2	%	18	%		248	2	%		226	2	%	10	%
Financial Services		(35	)	-1	%		27	1	%	-230	%		353	3	%		316	3	%	12	%
Total Consolidated	$	2,628		100	%	$	2,641	100	%	0	%	$	11,792	100	%	$	11,496	100	%	3	%
Net premiums earned
Property and all other	$	809		29	%	$	884	31	%	-8	%	$	3,250	28	%	$	3,425	31	%	-5	%
Casualty		1,663		58	%		1,547	54	%	7	%		6,563	56	%		5,806	52	%	13	%
Personal accident		314		11	%		297	10	%	6	%		1,242	10	%		1,133	10	%	10	%
Total P&C		2,786		98	%		2,728	95	%	2	%		11,055	94	%		10,364	93	%	7	%
Life		67		2	%		57	2	%	18	%		248	2	%		226	2	%	10	%
Financial Services		6		0	%		96	3	%	-94	%		445	4	%		520	5	%	-14	%
Total Consolidated	$	2,859		100	%	$	2,881	100	%	-1	%	$	11,748	100	%	$	11,110	100	%	6	%

Page 8

ACE Limited Consolidating Statement of Operations Three months ended December 31, 2005 and 2004 (in millions of U.S. dollars) (Unaudited)

	Insurance - North American			Insurance - Overseas General			Global Reinsurance			Corporate & Other			Consolidated P&C			Financial Services			Life			ACE Consolidated
December 31, 2005
Gross premiums written	$	2,086		$	1,388		$	283		$	—		$	3,757		$	(30	)	$	67		$	3,794
Net premiums written		1,306			1,014			276			—			2,596			(35	)		67			2,628
Net premiums earned		1,343			1,048			395			—			2,786			6			67			2,859
Losses and loss expenses		1,105			679			354			1			2,139			(4	)		—			2,135
Life and annuity benefits		—			—			—			—			—			—			35			35
Policy acquisition costs		111			224			79			—			414			6			7			427
Administrative expenses		91			137			13			48			289			4			8			301
Underwriting income (loss)		36			8			(51	)		(49	)		(56	)		—			17			(39	)
Net investment income		153			83			49			26			311			36			7			354
Net realized gains (losses)		(19	)		(18	)		(11	)		14			(34	)		6			3			(25	)
Interest expense		5			—			1			40			46			—			—			46
Other (income) expense		14			—			1			(1	)		14			(10	)		—			4
Income tax expense (benefit)		37			(17	)		5			(14	)		11			(7	)		—			4
Net income (loss)		114			90			(20	)		(34	)		150			59			27			236
Net realized gains (losses)		(19	)		(18	)		(11	)		14			(34	)		6			3			(25	)
Tax expense (benefit) on net realized gains (losses)		(9	)		(4	)		(1	)		—			(14	)		(3	)		—			(17	)
Income (loss) excluding net realized gains (losses) (1)	$	124		$	104		$	(10	)	$	(48	)	$	170		$	50		$	24		$	244
December 31, 2004
Gross premiums written	$	1,885		$	1,389		$	286		$	—		$	3,560		$	29		$	57		$	3,646
Net premiums written		1,194			1,083			280			—			2,557			27			57			2,641
Net premiums earned		1,243			1,126			359			—			2,728			96			57			2,881
Losses and loss expenses		1,366			547			204			2			2,119			97			—			2,216
Life and annuity benefits		—			—			—			—			—			—			39			39
Policy acquisition costs		114			222			68			—			404			1			6			411
Administrative expenses		128			132			15			57			332			1			4			337
Underwriting income (loss)		(365	)		225			72			(59	)		(127	)		(3	)		8			(122	)
Net investment income		132			65			38			9			244			29			9			282
Net realized gains (losses)		35			18			13			(2	)		64			12			54			130
Interest expense		5			—			—			38			43			—			—			43
Other (income) expense		2			15			(1	)		—			16			(15	)		—			1
Income tax expense (benefit)		(100	)		86			11			(31	)		(34	)		3			(1	)		(32	)
Net income (loss)		(105	)		207			113			(59	)		156			50			72			278
Net realized gains (losses)		35			18			13			(2	)		64			12			54			130
Tax expense (benefit) on net realized gains (losses)		5			5			—			—			10			2			—			12
Income (loss) excluding net realized gains (losses) (1)	$	(135	)	$	194		$	100		$	(57	)	$	102		$	40		$	18		$	160

(1) See page 32 Non-GAAP Financial Measures.

Page 9

ACE Limited Consolidating Statement of Operations Year ended December 31, 2005 and 2004 (in millions of U.S. dollars) (Unaudited)

	Insurance - North American			Insurance - Overseas General		Global Reinsurance			Corporate & Other			Consolidated P&C		Financial Services			Life			ACE Consolidated
December 31, 2005
Gross premiums written	$	8,830		$	5,775	$	1,599		$	—		$	16,204	$	359		$	248		$	16,811
Net premiums written		5,450			4,195		1,546			—			11,191		353			248			11,792
Net premiums earned		5,285			4,239		1,531			—			11,055		445			248			11,748
Losses and loss expenses		4,118			2,583		1,402			9			8,112		459			—			8,571
Life and annuity benefits		—			—		—			—			—		—			143			143
Policy acquisition costs		492			836		307			—			1,635		11			24			1,670
Administrative expenses		409			566		60			189			1,224		18			19			1,261
Underwriting income (loss)		266			254		(238	)		(198	)		84		(43	)		62			103
Net investment income		565			319		173			38			1,095		133			36			1,264
Net realized gains (losses)		(6	)		51		(4	)		(6	)		35		22			19			76
Interest expense		21			—		3			150			174		—			—			174
Other (income) expense		14			16		4			(1	)		33		(65	)		—			(32	)
Income tax expense (benefit)		208			107		11			(67	)		259		16			(2	)		273
Net income (loss)		582			501		(87	)		(248	)		748		161			119			1,028
Net realized gains (losses)		(6	)		51		(4	)		(6	)		35		22			19			76
Tax expense (benefit) on net realized gains (losses)		(8	)		13		—			—			5		(2	)		—			3
Income (loss) excluding net realized gains (losses) (1)	$	580		$	463	$	(83	)	$	(242	)	$	718	$	137		$	100		$	955
December 31, 2004
Gross premiums written	$	8,126		$	5,851	$	1,567		$	—		$	15,544	$	320		$	230		$	16,094
Net premiums written		5,101			4,335		1,518			—			10,954		316			226			11,496
Net premiums earned		4,679			4,296		1,389			—			10,364		520			226			11,110
Losses and loss expenses		3,898			2,423		973			8			7,302		388			—			7,690
Life and annuity benefits		—			—		—			—			—		—			175			175
Policy acquisition costs		447			800		271			—			1,518		23			24			1,565
Administrative expenses		451			544		65			155			1,215		39			11			1,265
Underwriting income (loss)		(117	)		529		80			(163	)		329		70			16			415
Net investment income		469			224		126			14			833		147			33			1,013
Net realized gains (losses)		126			47		27			7			207		(17	)		7			197
Interest expense		21			—		—			157			178		5			—			183
Other (income) expense		5			25		(1	)		(1	)		28		(25	)		—			3
Income tax expense (benefit)		82			232		14			(75	)		253		35			(2	)		286
Net income (loss)		370			543		220			(223	)		910		185			58			1,153
Net realized gains (losses)		126			47		27			7			207		(17	)		7			197
Tax expense (benefit) on net realized gains (losses)		22			14		—			—			36		8			—			44
Income (loss) excluding net realized gains (losses) (1)	$	266		$	510	$	193		$	(230	)	$	739	$	210		$	51		$	1,000

(1) See page 32 Non-GAAP Financial Measures.

Page 10

ACE Limited Segment Results - Catastrophe Loss Charges (in millions of U.S. dollars) (Unaudited)

	Insurance - North American			Insurance - Overseas General			Global Reinsurance			Consolidated P&C			Financial Services			Total			Total impact after income tax
Fourth Quarter Catastrophe Loss Charges - 2005
Catastrophe Loss Charges- By Event
Gross loss																$	585
Net loss
Hurricane - Dennis	$	—		$	(3	)	$	(13	)	$	(16	)	$	—		$	(16	)	$	(14	)
Hurricane - Katrina		41			16			16			73			(45	)		28			40
Hurricane - Rita		3			4			20			27			15			42			34
Hurricane - Wilma		70			63			152			285			30			315			251
Other (1)		—			—			(9	)		(9	)		—			(9	)		(7	)
Total	$	114		$	80		$	166		$	360		$	—		$	360		$	304
Reinstatement premiums (earned) expensed	$	17		$	2		$	(19	)	$	—		$	—		$	—
Premiums expensed on multi-year contracts		—			—			—			—			15			15
Net premium (earned) expensed	$	17		$	2		$	(19	)	$	—		$	15		$	15
Total impact before income tax	$	131		$	82		$	147		$	360		$	15		$	375
Income tax benefit		(41	)		(24	)		(6	)		(71	)		—			(71	)
Total impact after income tax	$	90		$	58		$	141		$	289		$	15		$	304
Effective tax rate		31	%		29	%		4	%		20	%		0	%		19	%
Full Year Catastrophe Loss Charges - 2005
Gross loss																$	2,954
Net loss
Q1 Storms	$	—		$	—		$	3		$	3		$	—		$	3		$	3
Hurricane - Dennis		12			2			12			26			—			26			21
Hurricane - Katrina		180			86			335			601			195			796			598
Hurricane - Rita		55			50			89			194			15			209			165
Hurricane - Wilma		70			63			152			285			30			315			251
Other (1)		—			—			10			10			—			10			11
Total	$	317		$	201		$	601		$	1,119		$	240		$	1,359		$	1,049
Reinstatement premiums (earned) expensed	$	76		$	38		$	(46	)	$	68		$	—		$	68
Premiums earned on multi-year contracts		—			—			—			—			(148	)		(148	)
Net premium (earned) expensed	$	76		$	38		$	(46	)	$	68		$	(148	)	$	(80	)
Total impact before income tax	$	393		$	239		$	555		$	1,187		$	92		$	1,279
Income tax benefit		(128	)		(71	)		(31	)		(230	)		—			(230	)
Total impact after income tax	$	265		$	168		$	524		$	957		$	92		$	1,049
Effective tax rate		33	%		30	%		6	%		19	%		0	%		18	%

(1) Includes Ophelia, Nabi and European floods.

Page 11

ACE Limited Segment Results - Catastrophe Loss Charges -2 (in millions of U.S. dollars) (Unaudited)

	Insurance - North American			Insurance - Overseas General			Global Reinsurance			Consolidated P&C			Financial Services			Total
Fourth Quarter Catastrophe Loss Charges - 2004
Catastrophe Loss Charges- By Event
Net loss
Hurricane - Charley	$	—		$	—		$	(1	)	$	(1	)	$	—		$	(1	)
Hurricane - Frances		—			—			17			17			—			17
Hurricane - Ivan		—			—			(5	)		(5	)		—			(5	)
Hurricane - Jeanne		—			—			8			8			—			8
Typhoons		—			—			4			4			—			4
Other		—			—			8			8			—			8
Total	$	—		$	—		$	31		$	31		$	—		$	31
Reinstatement premiums (earned) expensed	$	—		$	—		$	—		$	—		$	—		$	—
Total impact before income tax	$	—		$	—		$	31		$	31		$	—		$	31
Income tax benefit		—			—			—			—			—			—
Total impact after income tax	$	—		$	—		$	31		$	31		$	—		$	31
Full Year Catastrophe Loss Charges - 2004
Net loss
Hurricane - Charley	$	31		$	—		$	64		$	95		$	—		$	95
Hurricane - Frances		22			6			65			93			5			98
Hurricane - Ivan		40			20			71			131			5			136
Hurricane - Jeanne		33			18			71			122			1			123
Typhoons		—			9			30			39			—			39
Other		—			—			8			8			—			8
Total	$	126		$	53		$	309		$	488		$	11		$	499
Reinstatement premiums (earned) expensed	$	13		$	13		$	(15	)	$	11		$	—		$	11
Total impact before income tax	$	139		$	66		$	294		$	499		$	11		$	510
Income tax benefit		(41	)		(21	)		(11	)		(73	)		—			(73	)
Total impact after income tax	$	98		$	45		$	283		$	426		$	11		$	437
Effective tax rate		29	%		32	%		4	%		15	%		0	%		14	%

Page 12

ACE Limited Loss Analysis ⁽¹⁾ (in millions of U.S. dollars) (Unaudited)

	Insurance - North American			Insurance - Overseas General			Global Reinsurance			Consolidated P&C			Financial Services			Life		ACE Consolidated
Fourth Quarter - 2005
Net Premium Written as reported	$	1,306		$	1,014		$	276		$	2,596		$	(35	)	$	67	$	2,628
Catastrophe Impact		17			2			(19	)		—			19			—		19
Net Premium Written excluding Catastrophes		1,323			1,016			257			2,596			(16	)		67		2,647
Net Premium Earned as reported	$	1,343		$	1,048		$	395		$	2,786		$	6		$	67	$	2,859
Catastrophe Impact		17			2			(19	)		—			15			—		15
Net Premium Earned excluding Catastrophes		1,360			1,050			376			2,786			21			67		2,874
Loss Ratio as reported		82.3	%		64.8	%		89.6	%		76.8	%							76.5	%
Catastrophe Impact		9.4	%		7.8	%		39.6	%		12.9	%							12.6	%
Loss Ratio excluding Catastrophes		72.9	%		57.0	%		50.0	%		63.9	%							63.9	%
Expense Ratio as reported		15.0	%		34.5	%		23.4	%		25.2	%							25.5	%
Catastrophe Impact		0.3	%		0.0	%		-1.2	%		0.0	%							-0.1	%
Expense Ratio excluding Catastrophes		14.7	%		34.5	%		24.6	%		25.2	%							25.6	%
Combined Ratio as reported		97.3	%		99.3	%		113.0	%		102.0	%							102.0	%
Catastrophe Impact		9.7	%		7.8	%		38.4	%		12.9	%							12.5	%
Combined Ratio excluding Catastrophes		87.6	%		91.5	%		74.6	%		89.1	%							89.5	%
Full Year - 2005
Net Premium Written as reported	$	5,450		$	4,195		$	1,546		$	11,191		$	353		$	248	$	11,792
Catastrophe Impact		76			38			(46	)		68			(112	)		—		(44	)
Net Premium Written excluding Catastrophes		5,526			4,233			1,500			11,259			241			248		11,748
Net Premium Earned as reported	$	5,285		$	4,239		$	1,531		$	11,055		$	445		$	248	$	11,748
Catastrophe Impact		76			38			(46	)		68			(148	)		—		(80	)
Net Premium Earned excluding Catastrophes		5,361			4,277			1,485			11,123			297			248		11,668
Loss Ratio as reported		77.9	%		60.9	%		91.6	%		73.4	%		103.0	%				74.5	%
Catastrophe Impact		7.1	%		5.2	%		37.7	%		10.5	%		29.5	%				11.4	%
Loss Ratio excluding Catastrophes		70.8	%		55.7	%		53.9	%		62.9	%		73.5	%				63.1	%
Expense Ratio as reported		17.0	%		33.1	%		24.0	%		25.8	%		6.6	%				25.1	%
Catastrophe Impact		0.2	%		0.3	%		-0.7	%		0.1	%		-3.2	%				-0.2	%
Expense Ratio excluding Catastrophes		16.8	%		32.8	%		24.7	%		25.7	%		9.8	%				25.3	%
Combined Ratio as reported		94.9	%		94.0	%		115.6	%		99.2	%		109.6	%				99.6	%
Catastrophe Impact		7.3	%		5.5	%		37.0	%		10.6	%		26.3	%				11.2	%
Combined Ratio excluding Catastrophes		87.6	%		88.5	%		78.6	%		88.6	%		83.3	%				88.4	%

(1) See page 32 Non-GAAP Financial Measures.

Page 13

ACE Limited Loss Analysis ⁽¹⁾ - 2 (in millions of U.S. dollars) (Unaudited)

	Insurance - North American			Insurance - Overseas General			Global Reinsurance			Consolidated P&C			Financial Services			Life		ACE Consolidated
Fourth Quarter - 2004
Net Premium Written as reported	$	1,194		$	1,083		$	280		$	2,557		$	27		$	57	$	2,641
Catastrophe Impact		—			—			—			—			—			—		—
Net Premium Written excluding Catastrophes		1,194			1,083			280			2,557			27			57		2,641
Net Premium Earned as reported	$	1,243		$	1,126		$	359		$	2,728		$	96		$	57	$	2,881
Catastrophe Impact		—			—			—			—			—			—		—
Net Premium Earned excluding Catastrophes		1,243			1,126			359			2,728			96			57		2,881
Loss Ratio as reported		109.9	%		48.6	%		57.0	%		77.7	%		101.3	%				78.5	%
Catastrophe and A&E Impact		36.9	%		0.5	%		8.7	%		18.2	%		0.0	%				17.5	%
Loss Ratio excluding Catastrophes and A&E		73.0	%		48.1	%		48.3	%		59.5	%		101.3	%				61.0	%
Expense Ratio as reported		19.4	%		31.5	%		23.0	%		27.0	%		1.7	%				26.1	%
Catastrophe and A&E Impact		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%				0.0	%
Expense Ratio excluding Catastrophes and A&E		19.4	%		31.5	%		23.0	%		27.0	%		1.7	%				26.1	%
Combined Ratio as reported		129.3	%		80.1	%		80.0	%		104.7	%		103.0	%				104.6	%
Catastrophe and A&E Impact		36.9	%		0.5	%		8.7	%		18.2	%		0.0	%				17.5	%
Combined Ratio excluding Catastrophes and A&E		92.4	%		79.6	%		71.3	%		86.5	%		103.0	%				87.1	%
Full Year - 2004
Net Premium Written as reported	$	5,101		$	4,335		$	1,518		$	10,954		$	316		$	226	$	11,496
Catastrophe Impact		13			13			(15	)		11			—			—		11
Net Premium Written excluding Catastrophes		5,114			4,348			1,503			10,965			316			226		11,507
Net Premium Earned as reported	$	4,679		$	4,296		$	1,389		$	10,364		$	520		$	226	$	11,110
Catastrophe Impact		13			13			(15	)		11			—			—		11
Net Premium Earned excluding Catastrophes		4,692			4,309			1,374			10,375			520			226		11,121
Loss Ratio as reported		83.3	%		56.4	%		70.1	%		70.5	%		74.6	%				70.7	%
Catastrophe and A&E Impact		12.7	%		1.5	%		21.7	%		9.3	%		2.1	%				8.9	%
Loss Ratio excluding Catastrophes and A&E		70.6	%		54.9	%		48.4	%		61.2	%		72.5	%				61.8	%
Expense Ratio as reported		19.2	%		31.3	%		24.1	%		26.4	%		11.8	%				25.7	%
Catastrophe and A&E Impact		0.1	%		0.1	%		-0.3	%		0.1	%		-0.1	%				0.0	%
Expense Ratio excluding Catastrophes and A&E		19.1	%		31.2	%		24.4	%		26.3	%		11.9	%				25.7	%
Combined Ratio as reported		102.5	%		87.7	%		94.2	%		96.9	%		86.4	%				96.4	%
Catastrophe and A&E Impact		12.8	%		1.6	%		21.4	%		9.4	%		2.0	%				8.9	%
Combined Ratio excluding Catastrophes and A&E		89.7	%		86.1	%		72.8	%		87.5	%		84.4	%				87.5	%

(1) See page 32 Non-GAAP Financial Measures.

Page 14

ACE Limited Segment Results - Consecutive Quarters (in millions of U.S. dollars) (Unaudited)

	4Q-05			3Q-05			2Q-05			1Q-05			4Q-04			Full Year 2005			Full Year 2004
Insurance - North American
Gross premiums written	$	2,086		$	2,250		$	2,344		$	2,150		$	1,885		$	8,830		$	8,126
Net premiums written		1,306			1,307			1,412			1,425			1,194			5,450			5,101
Net premiums earned		1,343			1,338			1,319			1,285			1,243			5,285			4,679
Losses and loss expenses		1,105			1,173			948			892			1,366			4,118			3,898
Policy acquisition costs		111			134			130			117			114			492			447
Administrative expenses		91			96			111			111			128			409			451
Underwriting income (loss)		36			(65	)		130			165			(365	)		266			(117	)
Net investment income		153			139			142			131			132			565			469
Net realized gains (losses)		(19	)		10			14			(11	)		35			(6	)		126
Interest expense		5			6			5			5			5			21			21
Other (income) expense		14			(1	)		1			—			2			14			5
Income tax expense (benefit)		37			10			81			80			(100	)		208			82
Net income (loss)		114			69			199			200			(105	)		582			370
Net realized gains (losses)		(19	)		10			14			(11	)		35			(6	)		126
Tax expense (benefit) on net realized gains (losses)		(9	)		2			2			(3	)		5			(8	)		22
Income (loss) excluding net realized gains (losses) (1)	$	124		$	61		$	187		$	208		$	(135	)	$	580		$	266
Combined ratio
Loss and loss expense ratio		82.3	%		87.7	%		71.9	%		69.4	%		109.9	%		77.9	%		83.3	%
Policy acquisition cost ratio		8.3	%		10.0	%		9.8	%		9.1	%		9.1	%		9.3	%		9.6	%
Administrative expense ratio		6.7	%		7.2	%		8.4	%		8.6	%		10.3	%		7.7	%		9.6	%
Combined ratio		97.3	%		104.9	%		90.1	%		87.1	%		129.3	%		94.9	%		102.5	%
Large losses and other items (before tax)
Asbestos, environmental and other run-off losses	$	—		$	—		$	—		$	—		$	459		$	—		$	459
Catastrophe and other large losses (before tax)	$	114		$	203		$	—		$	—		$	—		$	317		$	126
Prior period development - unfavorable (favorable)	$	30		$	22		$	51		$	22		$	96		$	125		$	195
% Change versus prior year period
Net premiums written		9	%		-4	%		6	%		18	%		12	%		7	%		26	%
Net premiums earned		8	%		7	%		12	%		28	%		23	%		13	%		27	%
Other ratios
Net premiums written/gross premiums written		63	%		58	%		60	%		66	%		63	%		62	%		63	%

(1) See page 32 Non-GAAP Financial Measures.

Page 15

ACE Limited Segment Results - Consecutive Quarters (in millions of U.S. dollars) (Unaudited)

	4Q-05			3Q-05			2Q-05			1Q-05			4Q-04			Full Year 2005			Full Year 2004
Insurance - Overseas General (excluding life insurance)
Gross premiums written	$	1,388		$	1,328		$	1,425		$	1,634		$	1,389		$	5,775		$	5,851
Net premiums written		1,014			929			1,059			1,193			1,083			4,195			4,335
Net premiums earned		1,048			1,027			1,078			1,086			1,126			4,239			4,296
Losses and loss expenses		679			685			609			610			547			2,583			2,423
Policy acquisition costs		224			205			216			191			222			836			800
Administrative expenses		137			143			140			146			132			566			544
Underwriting income (loss)		8			(6	)		113			139			225			254			529
Net investment income		83			82			80			74			65			319			224
Net realized gains (losses)		(18	)		17			34			18			18			51			47
Interest expense		—			—			—			—			—			—			—
Other (income) expense		—			5			5			6			15			16			25
Income tax expense (benefit)		(17	)		23			49			52			86			107			232
Net income		90			65			173			173			207			501			543
Net realized gains (losses)		(18	)		17			34			18			18			51			47
Tax expense (benefit) on net realized gains (losses)		(4	)		5			7			5			5			13			14
Income excluding net realized gains (losses) (1)	$	104		$	53		$	146		$	160		$	194		$	463		$	510
Combined ratio
Loss and loss expense ratio		64.8	%		66.8	%		56.4	%		56.2	%		48.6	%		60.9	%		56.4	%
Policy acquisition cost ratio		21.3	%		20.0	%		20.0	%		17.6	%		19.8	%		19.7	%		18.6	%
Administrative expense ratio		13.2	%		13.8	%		13.1	%		13.4	%		11.7	%		13.4	%		12.7	%
Combined ratio		99.3	%		100.6	%		89.5	%		87.2	%		80.1	%		94.0	%		87.7	%
Large losses and other items
Asbestos, environmental and other run-off losses	$	—		$	—		$	—		$	—		$	6		$	—		$	6
Catastrophe and other large losses (before tax)	$	80		$	121		$	—		$	—		$	—		$	201		$	53
Prior period development - unfavorable (favorable)	$	9		$	10		$	(21	)	$	7		$	22		$	5		$	(23	)
% Change versus prior year period
Net premiums written		-6	%		-5	%		-3	%		1	%		10	%		-3	%		15	%
Net premiums earned		-7	%		-5	%		1	%		7	%		11	%		-1	%		17	%
Other ratios
Net premiums written/gross premiums written		73	%		70	%		74	%		73	%		78	%		73	%		74	%

(1) See page 32 Non-GAAP Financial Measures.

Page 16

ACE Limited Segment Results - Consecutive Quarters - 2 (in millions of U.S. dollars) (Unaudited)

	3Q-04			2Q-04			1Q-04			Full Year 2003
Insurance - Overseas General (excluding life insurance)
Gross premiums written	$	1,290		$	1,500		$	1,672		$	5,188
Net premiums written		978			1,097			1,177			3,773
Net premiums earned		1,084			1,068			1,018			3,659
Losses and loss expenses		664			626			586			2,182
Policy acquisition costs		198			195			185			681
Administrative expenses		138			138			136			487
Underwriting income	$	84		$	109		$	111		$	309
Net investment income		51			58			50			166
Net realized gains (losses)		2			3			24			(6	)
Interest expense		—			—			—			—
Other (income) expense		3			4			3			15
Income tax expense		34			60			52			99
Net income	$	100		$	106		$	130		$	355
Net realized gains (losses)		2			3			24			(6	)
Tax expense (benefit) on net realized gains (losses)		1			1			7			(5	)
Income excluding net realized gains (losses) (1)	$	99		$	104		$	113		$	356
Combined ratio
Loss and loss expense ratio		61.2	%		58.7	%		57.6	%		59.6	%
Policy acquisition cost ratio		18.2	%		18.3	%		18.1	%		18.6	%
Administrative expense ratio		12.7	%		13.0	%		13.3	%		13.3	%
Combined ratio		92.1	%		90.0	%		89.0	%		91.5	%

(1) See page 32 Non-GAAP Financial Measures.

Page 17

ACE Limited Segment Results - Consecutive Quarters (in millions of U.S. dollars) (Unaudited)

	4Q-05			3Q-05			2Q-05			1Q-05			4Q-04			Full Year 2005			Full Year 2004
Global Reinsurance
Gross premiums written	$	283		$	411		$	369		$	536		$	286		$	1,599		$	1,567
Net premiums written		276			380			363			527			280			1,546			1,518
Net premiums earned		395			408			372			356			359			1,531			1,389
Losses and loss expenses		354			637			206			205			204			1,402			973
Policy acquisition costs		79			78			77			73			68			307			271
Administrative expenses		13			16			16			15			15			60			65
Underwriting income (loss)		(51	)		(323	)		73			63			72			(238	)		80
Net investment income		49			45			40			39			38			173			126
Net realized gains (losses)		(11	)		7			6			(6	)		13			(4	)		27
Interest expense		1			1			—			1			—			3			—
Other (income) expense		1			1			1			1			(1	)		4			(1	)
Income tax expense (benefit)		5			(12	)		9			9			11			11			14
Net income (loss)		(20	)		(261	)		109			85			113			(87	)		220
Net realized gains (losses)		(11	)		7			6			(6	)		13			(4	)		27
Tax expense (benefit) on net realized gains (losses)		(1	)		1			—			—			—			—			—
Income (loss) excluding net realized gains (losses) (1)	$	(10	)	$	(267	)	$	103		$	91		$	100		$	(83	)	$	193
Combined ratio
Loss and loss expense ratio		89.6	%		156.2	%		55.4	%		57.6	%		57.0	%		91.6	%		70.1	%
Policy acquisition cost ratio		20.0	%		19.1	%		20.7	%		20.5	%		19.0	%		20.1	%		19.5	%
Administrative expense ratio		3.4	%		4.0	%		4.1	%		4.3	%		4.0	%		3.9	%		4.6	%
Combined ratio		113.0	%		179.3	%		80.2	%		82.4	%		80.0	%		115.6	%		94.2	%
Large losses and other items
Catastrophe and other large losses (before tax)	$	166		$	432		$	—		$	3		$	31		$	601		$	309
Prior period development - unfavorable (favorable)	$	(14	)	$	(5	)	$	(3	)	$	—		$	(13	)	$	(22	)	$	(61	)

(1) See page 32 Non-GAAP Financial Measures.

Page 18

ACE Limited Segment Results - Consecutive Quarters - 2 (in millions of U.S. dollars) (Unaudited)

	4Q-05			3Q-05			2Q-05			1Q-05			4Q-04			Full Year 2005			Full Year 2004
Global Reinsurance
% Change versus prior year period
Net premiums written		-1	%		26	%		-1	%		-8	%		27	%		2	%		24	%
Net premiums earned		10	%		16	%		7	%		7	%		16	%		10	%		26	%
Other ratios
Net premiums written/gross premiums written		98	%		92	%		98	%		98	%		98	%		97	%		97	%
Global Reinsurance - By Division
Gross premiums written
Tempest Europe	$	60		$	78		$	49		$	105		$	64		$	292		$	326
Tempest USA		193			234			228			248			204			903			881
Tempest Bermuda		30			99			92			183			18			404			360
Total	$	283		$	411		$	369		$	536		$	286		$	1,599		$	1,567
Net premiums written
Tempest Europe	$	58		$	74		$	46		$	102		$	61		$	280		$	311
Tempest USA		193			231			227			247			204			898			877
Tempest Bermuda		25			75			90			178			15			368			330
Total	$	276		$	380		$	363		$	527		$	280		$	1,546		$	1,518
Net premiums earned
Tempest Europe	$	74		$	79		$	66		$	76		$	76		$	295		$	303
Tempest USA		222			223			230			212			206			887			751
Tempest Bermuda		99			106			76			68			77			349			335
Total	$	395		$	408		$	372		$	356		$	359		$	1,531		$	1,389
Net premiums written/gross premiums written
Tempest Europe		97	%		95	%		94	%		97	%		95	%		96	%		95	%
Tempest USA		100	%		99	%		100	%		100	%		100	%		99	%		100	%
Tempest Bermuda		83	%		76	%		98	%		97	%		83	%		91	%		92	%
Total NPW/GPW		98	%		92	%		98	%		98	%		98	%		97	%		97	%

Page 19

ACE Limited Segment Results - Consecutive Quarters (in millions of U.S. dollars) (Unaudited)

	4Q-05			3Q-05			2Q-05			1Q-05			4Q-04			Full Year 2005			Full Year 2004
Financial Services
Gross premiums written	$	(30	)	$	211		$	15		$	163		$	29		$	359		$	320
Net premiums written		(35	)		212			15			161			27			353			316
Net premiums earned		6			257			92			90			96			445			520
Losses and loss expenses		(4	)		310			70			83			97			459			388
Policy acquisition costs		6			2			1			2			1			11			23
Administrative expenses		4			3			7			4			1			18			39
Underwriting income (loss)		—			(58	)		14			1			(3	)		(43	)		70
Net investment income		36			35			30			32			29			133			147
Net realized gains (losses)		6			7			3			6			12			22			(17	)
Interest expense		—			—			—			—			—			—			5
Other (income) expense		(10	)		(30	)		(13	)		(12	)		(15	)		(65	)		(25	)
Income tax expense (benefit)		(7	)		10			7			6			3			16			35
Net income		59			4			53			45			50			161			185
Net realized gains (losses)		6			7			3			6			12			22			(17	)
Tax expense (benefit) on net realized gains (losses)		(3	)		—			(1	)		2			2			(2	)		8
Income (loss) excluding net realized gains (losses) (1)	$	50		$	(3	)	$	49		$	41		$	40		$	137		$	210
Combined ratio
Loss and loss expense ratio		-66.6	%		120.7	%		76.0	%		92.2	%		101.3	%		103.0	%		74.6	%
Policy acquisition cost ratio		91.8	%		0.9	%		1.4	%		2.2	%		-0.1	%		2.6	%		4.3	%
Administrative expense ratio		64.7	%		1.4	%		6.7	%		4.6	%		1.8	%		4.0	%		7.5	%
Combined ratio		89.9	%		123.0	%		84.1	%		99.0	%		103.0	%		109.6	%		86.4	%
Large losses and other items
Catastrophe and other large losses (before tax)	$	—		$	240		$	—		$	—		$	—		$	240		$	11
Prior period development - unfavorable (favorable)	$	(17	)	$	2		$	(8	)	$	1		$	(8	)	$	(22	)	$	(29	)
% Change versus prior year period
Net premiums written		-230	%		212	%		15	%		-23	%		-90	%		12	%		-69	%
Net premiums earned		-94	%		132	%		-31	%		-50	%		-80	%		-14	%		-52	%
Other ratios
Net premiums written/gross premiums written		117	%		100	%		100	%		99	%		93	%		98	%		99	%

(1) See page 32 Non-GAAP Financial Measures.

Page 20

ACE Limited Segment Results - Consecutive Quarters (in millions of U.S. dollars) (Unaudited)

	4Q-05		3Q-05			2Q-05			1Q-05			4Q-04			Full Year 2005			Full Year 2004
Life Insurance and Reinsurance
Gross premiums written		67		61			60			60			57			248			230
Net premiums written		67		61			60			60			57			248			226
Net premiums earned		67		61			60			60			57			248			226
Life and annuity benefits		35		35			38			35			39			143			175
Policy acquisition costs		7		7			5			5			6			24			24
Administrative expenses		8		4			3			4			4			19			11
Net investment income		7		10			10			9			9			36			33
Life underwriting income (2)		24		25			24			25			17			98			49
Net realized gains (losses)		3		5			27			(16	)		54			19			7
Income tax expense (benefit)		—		(1	)		(1	)		—			(1	)		(2	)		(2	)
Net income		27		31			52			9			72			119			58
Net realized gains (losses)		3		5			27			(16	)		54			19			7
Tax expense (benefit) on net realized gains (losses)		—		—			—			—			—			—			—
Income excluding net realized gains (losses) (1)	$	24	$	26		$	25		$	25		$	18		$	100		$	51

	3Q-04			2Q-04		1Q-04			Full Year 2003
Gross premiums written		62			57		54			196
Net premiums written		61			56		52			188
Net premiums earned		62			55		52			187
Life and annuity benefits		49			45		42			182
Policy acquisition costs		7			6		5			17
Administrative expenses		2			2		3			6
Net investment income		8			8		8			33
Life underwriting income (2)		12			10		10			15
Net realized gains (losses)		(37	)		15		(25	)		(21	)
Income tax expense (benefit)		—			—		(1	)		(1	)
Net income (loss)		(25	)		25		(14	)		(5	)
Net realized gains (losses)		(37	)		15		(25	)		(21	)
Tax expense (benefit) on net realized gains (losses)		—			—		—			—
Income (loss) excluding net realized gains (losses) (1)	$	12		$	10	$	11		$	16

(1) See page 32 Non-GAAP Financial Measures.

(2) We assess the performance of our Life Insurance and Reinsurance business based on life underwriting income which includes net investment income.

Page 21

ACE Limited Loss Reserve Rollforward (in millions of U.S. dollars) (Unaudited)

	Total Unpaid Losses									Ongoing Unpaid Losses									Run-off (1) Unpaid Losses
	Gross			Ceded			Net			Gross			Ceded			Net			Gross			Ceded			Net
Balance at December 31, 2003	$	27,083		$	12,409		$	14,674		$	19,763		$	7,259		$	12,504		$	7,320		$	5,150		$	2,170
Losses and loss expenses incurred		2,285			756			1,529			2,243			724			1,519			42			32			10
Losses and loss expenses paid		(1,860	)		(781	)		(1,079	)		(1,639	)		(545	)		(1,094	)		(221	)		(236	)		15
Other (incl. foreign exch. revaluation)		117			110			7			117			110			7			—			—			—
Balance at March 31, 2004		27,625			12,494			15,131			20,484			7,548			12,936			7,141			4,946			2,195
Losses and loss expenses incurred		2,452			727			1,725			2,482			761			1,721			(30	)		(34	)		4
Losses and loss expenses paid		(1,693	)		(593	)		(1,100	)		(1,402	)		(399	)		(1,003	)		(291	)		(194	)		(97	)
Other (incl. foreign exch. revaluation)		(232	)		166			(398	)		(232	)		166			(398	)		—			—			—
Balance at June 30, 2004		28,152			12,794			15,358			21,332			8,076			13,256			6,820			4,718			2,102
Losses and loss expenses incurred		3,296			1,076			2,220			3,267			1,058			2,209			29			18			11
Losses and loss expenses paid		(1,945	)		(697	)		(1,248	)		(1,737	)		(372	)		(1,365	)		(208	)		(325	)		117
Other (incl. foreign exch. revaluation)		28			48			(20	)		(395	)		(375	)		(20	)		423			423			—
Balance at September 30, 2004		29,531			13,221			16,310			22,467			8,387			14,080			7,064			4,834			2,230
Losses and loss expenses incurred		3,723			1,507			2,216			2,683			1,083			1,600			1,040			424			616
Losses and loss expenses paid		(2,340	)		(1,007	)		(1,333	)		(2,231	)		(959	)		(1,272	)		(109	)		(48	)		(61	)
Other (incl. foreign exch. revaluation)		569			245			324			282			(84	)		366			287			329			(42	)
Balance at December 31, 2004		31,483			13,966			17,517			23,201			8,427			14,774			8,282			5,539			2,743
Losses and loss expenses incurred		2,536			747			1,789			2,492			725			1,767			44			22			22
Losses and loss expenses paid		(1,998	)		(763	)		(1,235	)		(1,817	)		(661	)		(1,156	)		(181	)		(102	)		(79	)
Other (incl. foreign exch. revaluation) (2)		(595	)		(595	)		—			(669	)		(670	)		1			74			75			(1	)
Balance at March 31, 2005		31,426			13,355			18,071			23,207			7,821			15,386			8,219			5,534			2,685
Losses and loss expenses incurred		2,811			968			1,843			2,791			957			1,834			20			11			9
Losses and loss expenses paid		(1,919	)		(752	)		(1,167	)		(1,711	)		(567	)		(1,144	)		(208	)		(185	)		(23	)
Other (incl. foreign exch. revaluation)		(217	)		(71	)		(146	)		(190	)		(71	)		(119	)		(27	)		—			(27	)
Balance at June 30, 2005		32,101			13,500			18,601			24,097			8,140			15,957			8,004			5,360			2,644
Losses and loss expenses incurred		5,016			2,212			2,804			4,942			2,194			2,748			74			18			56
Losses and loss expenses paid		(2,342	)		(892	)		(1,450	)		(2,187	)		(799	)		(1,388	)		(155	)		(93	)		(62	)
Other (incl. foreign exch. revaluation)		(101	)		(55	)		(46	)		(101	)		(54	)		(47	)		—			(1	)		1
Balance at September 30, 2005		34,674			14,765			19,909			26,751			9,481			17,270			7,923			5,284			2,639
Losses and loss expenses incurred		2,956			821			2,135			2,804			705			2,099			152			116			36
Losses and loss expenses paid		(2,485	)		(969	)		(1,516	)		(2,291	)		(897	)		(1,394	)		(194	)		(72	)		(122	)
Other (incl. foreign exch. revaluation)		(90	)		(20	)		(70	)		(90	)		(20	)		(70	)		—			—			—
Balance at December 31, 2005	$	35,055		$	14,597		$	20,458		$	27,174		$	9,269		$	17,905		$	7,881		$	5,328		$	2,553

(1) The run-off reserves primarily include the Brandywine group, the Commercial Insurance Service - Middle Market Worker’s Comp. reserves and the pre-1997 Westchester Specialty reserves.

(2) Includes a novation of a contract for $597M.

Page 22

ACE Limited Reinsurance Recoverable Analysis (in millions of U.S. dollars) (Unaudited)

	December 31 2005			September 30 2005			June 30 2005			March 31 2005			December 31 2004
Net Reinsurance Recoverable by Division
Reinsurance recoverable on paid losses & loss expenses
Active operations	$	831		$	731		$	757		$	784		$	777
Brandywine		307			403			415			385			398
Westchester		53			40			43			35			35
Total	$	1,191		$	1,174		$	1,215		$	1,204		$	1,210
Reinsurance recoverable on unpaid losses & loss expenses
Active operations	$	10,125		$	10,277		$	8,907		$	8,607		$	9,291
Brandywine		4,240			4,436			4,654			4,796			4,720
Westchester		694			554			571			578			589
Total	$	15,059		$	15,267		$	14,132		$	13,981		$	14,600
Gross reinsurance recoverable
Active operations	$	10,956		$	11,008		$	9,664		$	9,391		$	10,068
Brandywine		4,547			4,839			5,069			5,181			5,118
Westchester		747			594			614			613			624
Total	$	16,250		$	16,441		$	15,347		$	15,185		$	15,810
Bad debt reserve
Active operations	$	(600	)	$	(588	)	$	(606	)	$	(607	)	$	(574	)
Brandywine		(176	)		(180	)		(302	)		(302	)		(341	)
Westchester		(11	)		(11	)		(11	)		(8	)		(13	)
Total	$	(787	)	$	(779	)	$	(919	)	$	(917	)	$	(928	)
Net reinsurance recoverable
Active operations	$	10,356		$	10,420		$	9,058		$	8,784		$	9,494
Brandywine		4,371			4,659			4,767			4,879			4,777
Westchester		736			583			603			605			611
Total	$	15,463		$	15,662		$	14,428		$	14,268		$	14,882

Page 23

ACE Limited Reinsurance Recoverable Analysis (in millions of U.S. dollars) (Unaudited)

	December 31, 2005
	Recoverable		Bad Debt		% of Gross
Reinsurance Recoverable for Active Operations
Categories
Top 10 reinsurers	$	5,254	$	69	1.3	%
Other reinsurers balances >$20 million		2,491		66	2.7	%
Other reinsurers balances <$20 million		605		63	10.4	%
Mandatory pools and government agencies		629		3	0.5	%
Structured settlements		220		1	0.4	%
Captives		1,034		1	0.1	%
Other(1)		723		397	54.9	%
Total	$	10,956	$	600	5.5	%

At December 31, 2005, $7.9 billion of the active operations’ recoverables were from rated reinsurers, of which 95.6% were rated the equivalent of A- or better by internationally recognized rating agencies. The Company held collateral of $2.7 billion, of which $1.6 billion was matched and usable against existing recoverables.

Top 10 Reinsurers (net of collateral) (2)	Other Reinsurers Balances Greater Than $20 million (net of collateral) (2)
American International Group	AGRI General Ins Co	ING Groep Nv
Berkshire Hathaway Insurance Group	AIOI Insurance	IPCRe Ltd
Chubb Insurance Group	Allianz	IRB - Brasil Resseguros S.A. Group
Everest Re Group	Allied World Assurance	Liberty Mutual Insurance Companies
GE Insurance Solutions	Arch Capital	Partner Re
HDI Haftpflichtverband Der Deutschen Industrie Vag (Hannover)	Aspen Insurance Holdings Ltd	Platinum Underwriters
Lloyd’s Of London	AVIVA	PXRE Reins Corp
Munich Re Group	AXA	Renaissance Re Holdings Ltd
Swiss Re Group	Catalina Holdings Ltd	Royal & Sun Alliance Insurance Group
XL Capital Group	CIGNA	SCOR Group
	CNA Insurance Companies	Sompo Japan
	Converium Group	St Paul Travelers Companies
	Electric Insurance Company	Tawa UK Ltd.
	Endurance Specialty Holdings Ltd	Toa Reinsurance Company
	Fairfax Financial	White Mountains Insurance Group
	Gerling Global Group	WR Berkley Corp
	Independence Blue Cross Group	Zurich Financial Services Group

⁽¹⁾ Other includes amounts recoverable that are in dispute, or are from companies who are in supervision, rehabilitation or liquidation. Our estimate of bad debt reserve associated with Other considers the credit quality of the reinsurer, and whether we have received collateral or other credit protections such as parental guarantees.

⁽²⁾ Excludes recoverable amounts from companies who are in supervision, rehabilitation or liquidation, or are captive reinsurers, mandatory pools or voluntary pools.

Page 24

ACE Limited Reinsurance Recoverable Analysis (in millions of U.S. dollars) (Unaudited)

	December 31, 2005
	Recoverable		Bad Debt		% of Gross
Consolidated Reinsurance Recoverable
Categories
Top 10 reinsurers	$	8,320	$	93	1.1	%
Other reinsurers balances >$20 million		3,785		159	4.2	%
Other reinsurers balances <$20 million		900		101	11.2	%
Mandatory pools and government agencies		643		3	0.5	%
Structured settlements		522		2	0.4	%
Captives		1,118		2	0.2	%
Other(1)		962		427	44.4	%
Total	$	16,250	$	787	4.8	%

At December 31, 2005, $12.1 billion of ACE Limited recoverables were from rated reinsurers, of which 94.7% were rated the equivalent of A- or better by internationally recognized rating agencies.

Top 10 Reinsurers (net of collateral) (2)	Other Reinsurers Balances Greater Than $20 million (net of collateral) (2)
American International Group	AGRI General Ins Co	Hartford Insurance Group
Berkshire Hathaway Insurance Group	AIOI Insurance	Independence Blue Cross Group
Equitas	Allianz	ING Groep Nv
Everest Re Group	Allied World Assurance	IPCRe Ltd
GE Insurance Solutions	Allstate Group	IRB - Brasil Resseguros S.A. Group
HDI Haftpflichtverband Der Deutschen Industrie Vag (Hannover)	Arch Capital	Liberty Mutual Insurance Companies
Lloyd’s Of London	Aspen Insurance Holdings Ltd	Millea Holdings
Munich Re Group	AVIVA	Partner Re
Swiss Re Group	AXA	Platinum Underwriters
XL Capital Group	Catalina Holdings Ltd	PXRE Reins Corp
	Chubb Insurance Group	Renaissance Re Holdings Ltd
	CIGNA	Royal & Sun Alliance Insurance Group
	CNA Insurance Companies	SCOR Group
	Converium Group	Sompo Japan
	Dominion Insurance Co Ltd	St Paul Travelers Companies
	Dukes Place Holdings	Tawa UK Ltd.
	Electric Insurance Company	Toa Reinsurance Company
	Endurance Specialty Holdings Ltd	Trenwick Group
	Fairfax Financial	White Mountains Insurance Group
	FM Global Group	WR Berkley Corp
	Gerling Global Group	Zurich Financial Services Group

⁽¹⁾ Other includes amounts recoverable that are in dispute, or are from companies who are in supervision, rehabilitation or liquidation. Our estimate of bad debt reserve associated with Other considers the credit quality of the reinsurer, and whether we have received collateral or other credit protections such as parental guarantees.

⁽²⁾ Excludes recoverable amounts from companies who are in supervision, rehabilitation or liquidation, or are captive reinsurers, mandatory pools or voluntary pools.

Page 25

ACE Limited Reinsurance Recoverable Analysis (in millions of U.S. dollars) (Unaudited)

	General Collections (1)			Other (2)			Total
Detail on Reinsurance Recoverable on Paid Losses and Loss Expenses
Gross balance at December 31, 2004	$	716		$	494		$	1,210
Bad debt reserve at 12/31/04		37			272			309
% of gross		5.2	%		55.1	%		25.5	%
Net balance at December 31, 2004	$	679		$	222		$	901
Gross balance at March 31, 2005	$	712		$	492		$	1,204
Bad debt reserve at 3/31/05		37			268			305
% of gross		5.2	%		54.5	%		25.3	%
Net balance at March 31, 2005	$	675		$	224		$	899
Gross balance at June 30, 2005	$	719		$	496		$	1,215
Bad debt reserve at 6/30/05		29			271			300
% of gross		4.0	%		54.6	%		24.7	%
Net balance at June 30, 2005	$	690		$	225		$	915
Gross balance at September 30, 2005	$	695		$	479		$	1,174
Bad debt reserve at 9/30/05		31			259			290
% of gross		4.5	%		54.1	%		24.7	%
Net balance at September 30, 2005	$	664		$	220		$	884
Gross balance at December 31, 2005	$	698		$	493		$	1,191
Bad debt reserve at 12/31/05		41			295			336
% of gross		5.9	%		59.8	%		28.2	%
Net balance at December 31, 2005	$	657		$	198		$	855

⁽¹⁾ General collections balances represent amounts in process of collection in the normal course of business, for which we have no indication of dispute or credit issues.

⁽²⁾ Other includes amounts recoverable that are in dispute, or are from companies who are in supervision, rehabilitation or liquidation for Brandywine Group and active operations. Our estimation of the reserve for other, considers the merits of the underlying matter, the credit quality of the reinsurer, and whether we have received collateral or other credit protections such as parental guarantees.

Page 26

ACE Limited Investment Portfolio (in millions of U.S. dollars) (Unaudited)

	December 31 2005			September 30 2005			June 30 2005			March 31 2005			December 31 2004
Market Value
Fixed maturities available for sale	$	24,285		$	22,551		$	21,136		$	20,336		$	22,891
Fixed maturities held to maturity		3,055			3,126			3,207			3,207			—
Short-term investments		2,299			2,212			2,476			2,156			2,163
Total	$	29,639		$	27,889		$	26,819		$	25,699		$	25,054
Asset Allocation by Market Value
Treasury	$	1,956		$	2,274		$	1,704		$	1,728		$	1,551
Agency		1,506			1,492			1,553			1,517			1,547
Corporate		7,646			7,718			7,555			7,615			7,614
Mortgage-backed securities		8,363			6,780			6,169			5,504			5,034
Asset-backed securities		1,981			1,420			1,444			1,215			1,225
Municipal		504			565			548			559			566
Non-US		5,384			5,428			5,370			5,405			5,376
Cash & cash equivalent		2,299			2,212			2,476			2,156			2,141
Total	$	29,639		$	27,889		$	26,819		$	25,699		$	25,054
Credit Quality by Market Value
AAA	$	18,985		$	16,994		$	16,205		$	14,743		$	13,890
AA		2,108			2,369			2,198			2,475			2,634
A		4,350			4,325			4,295			4,451			4,397
BBB		2,083			2,054			1,974			2,182			2,275
BB		945			1,013			1,041			817			774
B		1,106			1,093			1,060			982			1,041
Other		62			41			46			49			43
Total	$	29,639		$	27,889		$	26,819		$	25,699		$	25,054
Cost/Amortized Cost
Fixed maturities available for sale	$	24,273		$	22,434		$	20,825		$	20,217		$	22,422
Fixed maturities held to maturity		3,076			3,125			3,151			3,211			—
Short term investments		2,299			2,212			2,476			2,156			2,163
Subtotal		29,648			27,771			26,452			25,584			24,585
Equity securities		1,280			1,210			1,213			1,170			1,061
Other investments		672			575			562			564			544
Total	$	31,600		$	29,556		$	28,227		$	27,318		$	26,190
Avg. duration of fixed maturities, adjusted for int. rate swaps		2.9 years			3.2 years			3.0 years			3.1 years			3.4 years
Avg. market yield of fixed maturities		5.0	%		4.6	%		4.3	%		4.5	%		4.1	%
Avg. credit quality		AA			AA			AA			AA			AA

Page 27

ACE Limited Investment Portfolio - 2 (in millions of U.S. dollars) (Unaudited)

Investment portfolio

Top 10 Exposures - Fixed Maturity Investments

December 31, 2005			December 31, 2004
General Electric Co	$	260	General Electric Co	$	254
Citigroup Inc		220	Citigroup Inc		234
HSBC Holdings Plc		203	HSBC Holdings Plc		211
Morgan Stanley		164	JP Morgan Chase & Co		147
JP Morgan Chase & Co		161	General Motors Corp		135
Bank of America Corp		148	Bank of America Corp		131
Wells Fargo & Co		139	Wells Fargo & Co		128
Verizon Communications Inc		123	Morgan Stanley		123
Comcast Corp		122	Verizon Communications Inc		109
Lehman Brothers Holdings Inc		102	American International Group		105

Page 28

ACE Limited Net Realized and Unrealized Gains (Losses) (in millions of U.S. dollars) (Unaudited)

	Three months ended December 31, 2005									Year ended December 31, 2005
	Net Realized Gains (Losses) (1)			Net Unrealized Gains (Losses)			Net Impact			Net Realized Gains (Losses) (1)			Net Unrealized Gains (Losses)			Net Impact
Investment Portfolio Gains (Losses)
Fixed maturities	$	(77	)	$	(107	)	$	(184	)	$	(45	)	$	(447	)	$	(492	)
Equity securities		18			1			19			76			23			99
Equity and fixed income derivatives		14			—			14			12			—			12
Foreign exchange gains (losses)		2			—			2			—			—			—
Other		(1	)		7			6			4			38			42
Total inv. portfolio gains (losses)		(44	)		(99	)		(143	)		47			(386	)		(339	)
Other FAS 133 adjustments		19			—			19			29			—			29
Total gains (losses)		(25	)		(99	)		(124	)		76			(386	)		(310	)
Income tax expense (benefit)		(17	)		(15	)		(32	)		3			(69	)		(66	)
Net gains (losses)	$	(8	)	$	(84	)	$	(92	)	$	73		$	(317	)	$	(244	)
___________           (1)      The quarter includes impairments of $40M for fixed maturities, $10M for equities and $2M for other investments. Year to date includes impairments of $68M for fixed maturities, $16M for equities and $4M for other investments.
	Three months ended December 31, 2004									Year ended December 31, 2004
	Net Realized Gains (Losses) (2)			Net Unrealized Gains (Losses)			Net Impact			Net Realized Gains (Losses) (2)			Net Unrealized Gains (Losses)			Net Impact
Investment Portfolio Gains (Losses)
Fixed maturities	$	46		$	(34	)	$	12		$	113		$	(196	)	$	(83	)
Equity securities		9			80			89			84			54			138
Equity and fixed income derivatives		10			—			10			33			—			33
Foreign exchange gains (losses)		3			—			3			1			—			1
Other		—			27			27			(21	)		53			32
Total inv. portfolio gains (losses)		68			73			141			210			(89	)		121
Other FAS 133 adjustments		62			—			62			(13	)		—			(13	)
Total gains (losses)		130			73			203			197			(89	)		108
Income tax expense (benefit)		12			7			19			44			(39	)		5
Net gains (losses)	$	118		$	66		$	184		$	153		$	(50	)	$	103

___________

(2) The quarter includes impairments of $3M for fixed maturities, $4M for equities and $2M for other investments. Year to date includes impairments for $18M for fixed maturities, $9M for equities and $12M for other investments.

Page 29

ACE Limited Capital Structure (in millions of U.S. dollars) (Unaudited)

	December 31 2005			September 30 2005			June 30 2005			March 31 2005			December 31 2004			December 31 2003
Total short-term debt	$	300		$	446		$	147		$	147		$	146		$	546
Total long-term debt		1,811			1,564			1,849			1,849			1,849			1,349
Total debt		2,111			2,010			1,996			1,996			1,995			1,895
Total trust preferreds		309			412			412			412			412			475
Perpetual preferred		557			557			557			557			557			557
Ordinary shareholders’ equity		11,255			9,672			9,942			9,413			9,288			8,266
Total shareholders’ equity	$	11,812		$	10,229		$	10,499		$	9,970		$	9,845		$	8,823
Total capitalization	$	14,232		$	12,651		$	12,907		$	12,378		$	12,252		$	11,193
Tangible shareholders’ equity (1)	$	9,109		$	7,526		$	7,796		$	7,275		$	7,145		$	6,025
Leverage ratios
Debt/ total capitalization		14.8	%		15.9	%		15.5	%		16.1	%		16.3	%		16.9	%
Debt plus trust preferreds/ total capitalization		17.0	%		19.1	%		18.7	%		19.5	%		19.6	%		21.2	%
Debt/ tangible equity		23.2	%		26.7	%		25.6	%		27.4	%		27.9	%		31.5	%
Debt plus trust preferreds/ tangible equity		26.6	%		32.2	%		30.9	%		33.1	%		33.7	%		39.3	%
Debt plus total preferred stock/ total capitalization		20.9	%		23.5	%		23.0	%		24.0	%		24.2	%		26.2	%

(1) Tangible equity is equal to shareholders’ equity less goodwill.

Page 30

ACE Limited Computation of Basic and Diluted Earnings Per Share (in millions of U.S. dollars, except share and per share data) (Unaudited)

	Three months ended December 31						Year ended December 31
	2005			2004			2005			2004
Numerator
Income excluding net realized gains (losses)(1)	$	244		$	160		$	955		$	1,000
Perpetual preferred dividend		(12	)		(12	)		(45	)		(45	)
Income to ordinary shares, excl. net realized gains (losses)		232			148			910			955
Net realized gains (losses), net of income tax		(8	)		118			73			153
Net income (loss) available to the holders of ordinary shares	$	224		$	266		$	983		$	1,108
Rollforward of ordinary shares
Ordinary shares - beginning of period		288,672,450			284,112,866			284,478,525			279,897,193
Issued (Public Offering)		32,909,170			—			32,909,170			—
Issued under employee stock purchase plan		235			45			216,504			239,776
Stock (cancelled) granted		(38,719	)		(52,375	)		990,406			790,984
Issued for option exercises		1,779,450			417,989			4,727,981			3,550,572
Ordinary shares - end of period		323,322,586			284,478,525			323,322,586			284,478,525
Denominator
Weighted average shares outstanding		317,061,215			281,308,706			292,401,343			280,271,225
Effect of other dilutive securities		6,296,293			4,739,358			4,898,540			5,214,247
Adj. wtd. avg. shares outstanding and assumed conversions		323,357,508			286,048,064			297,299,883			285,485,472
Basic earnings per share
Income excluding net realized gains (losses)(1)	$	0.73		$	0.53		$	3.11		$	3.40
Net realized gains (losses), net of income tax		(0.02	)		0.42			0.25			0.55
Net income (loss)	$	0.71		$	0.95		$	3.36		$	3.95
Diluted earnings per share
Income excluding net realized gains (losses)(1)	$	0.72		$	0.52		$	3.06		$	3.34
Net realized gains (losses), net of income tax		(0.03	)		0.41			0.25			0.54
Net income (loss)	$	0.69		$	0.93		$	3.31		$	3.88

(1) See page 32 Non-GAAP Financial Measures.

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ACE Limited Non-GAAP Financial Measures (in millions of U.S. dollars) (Unaudited)

Regulation G - Non-GAAP Financial Measures

In presenting our results, we have included and discussed certain non-GAAP measures. These non-GAAP measures, which may be defined differently by other companies, are important for an understanding of our overall results of operations; however, they should not be viewed as a substitute for measures determined in accordance with GAAP. A reconciliation of book value per share is provided on page 33.

In presenting our segment operating results we have shown our performance with reference to underwriting results. Underwriting results are calculated by subtracting losses and loss expenses, life and annuity benefits, policy acquisition costs and administrative expenses from net premiums earned. We use underwriting results and operating ratios to monitor the results of our operations without the impact of certain factors, including investment income, other income and expenses, interest and income tax expense and net realized gains (losses).

The following non-GAAP measure is a common performance measurement and is defined as income (loss) excluding net realized gains (losses) and the tax expense on net realized gains (losses). 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. We believe these amounts are largely independent of our business and including them would distort the analysis of trends. Income excluding net realized gains (losses) should not be viewed as a substitute for net income determined in accordance with generally accepted accounting principles (GAAP).

	4Q-05			3Q-05			2Q-05		1Q-05			4Q-04		Full Year 2005		Full Year 2004
Net income (loss), as reported	$	236		$	(112	)	$	467	$	437		$	278	$	1,028	$	1,153
Net realized gains (losses)		(25	)		83			32		(14	)		130		76		197
Income tax expense (benefit) on net realized gains (losses)		(17	)		8			8		4			12		3		44
Income (loss) excluding net realized gains (losses)	$	244		$	(187	)	$	443	$	455		$	160	$	955	$	1,000

We also present income excluding net realized gains (losses), catastrophe losses and A&E, net of tax because those losses are deemed to be significant for the quarter and the year. Catastrophes are not predictable and cause significant variability in periodic earnings. On pages 13 and 14 we have presented net premium written, net premium earned, loss ratios, expense ratios and combined ratios excluding catastrophes and A&E as we believe this separate presentation is meaningful and useful for users of our financial information.

Page 32

ACE Limited Book Value per Ordinary Share (in millions of U.S. dollars, except share and per share data) (Unaudited)

	December 31 2005			September 30 2005			June 30 2005			March 31 2005			December 31 2004
Reconciliation of Book Value per Ordinary Share
Shareholders’ equity	$	11,812		$	10,229		$	10,499		$	9,970		$	9,845
Proceeds from issuance of preferred shares		(557	)		(557	)		(557	)		(557	)		(557	)
Numerator for book value per share calculation		11,255			9,672			9,942			9,413			9,288
Less: goodwill		2,703			2,703			2,703			2,695			2,700
Numerator for tangible book value per share	$	8,552		$	6,969		$	7,239		$	6,718		$	6,588
Denominator		323,322,586			288,672,450			288,073,439			287,353,327			284,478,525
Book value per ordinary share	$	34.81		$	33.51		$	34.51		$	32.76		$	32.65
Tangible book value per ordinary share	$	26.45		$	24.14		$	25.13		$	23.38		$	23.16

Page 33

ACE Limited Comprehensive Income (in millions of U.S. dollars) (Unaudited)

																Full Year
	4Q-05			3Q-05			2Q-05			1Q-05			4Q-04			2005			2004
Consolidated Statement of Comprehensive Income
Net income (loss)	$	236		$	(112	)	$	467		$	437		$	278		$	1,028		$	1,153
Net unrealized appreciation (depreciation) on investments
Unrealized appreciation (depreciation) on investments		(113	)		(78	)		247			(301	)		169			(245	)		183
Reclassification adjustment for net realized gains (losses) included in net income		16			(47	)		(56	)		(48	)		(96	)		(135	)		(272	)
Amortization of net unrealized appreciation related to held to maturity securities		(2	)		(2	)		(2	)		—			—			(6	)		—
Cumulative translation adjustment		(35	)		(25	)		(68	)		(11	)		126			(139	)		131
Minimum pension liability adjustment		1			1			4			2			(45	)		8			(43	)
Income tax (expense) benefit related to other comprehensive income items		24			40			(21	)		72			(34	)		115			22
Other comprehensive income (loss)		(109	)		(111	)		104			(286	)		120			(402	)		21
Comprehensive income (loss)	$	127		$	(223	)	$	571		$	151		$	398		$	626		$	1,174

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ACE Limited Glossary

Annualized return on ordinary shareholders’ equity (ROE): Income (loss) excluding net realized gains (losses) less perpetual preferred securities divided by average ordinary shareholders’ equity for the period. To annualize a quarterly rate multiply by four.

Combined ratio: The sum of the loss and loss expense ratio, acquisition cost ratio and the administrative expense ratio for the property and casualty and financial services operations. Calculated on a GAAP basis.

Book value per ordinary share: Ordinary shareholders’ equity divided by the shares outstanding.

Tangible book value per ordinary share: Ordinary shareholders’ equity less goodwill divided by the shares outstanding.

Effective tax rate: Income tax expense divided by the sum of income tax expense and income (loss) excluding net realized gains (losses).

FAS 115: Unrealized gains (losses) on investments and the deferred tax component included in shareholders’ equity.

Life underwriting income: Net premium earned and net investment income less future policy benefits, acquisition costs and administrative expenses.

NM: Not meaningful.

Ordinary shareholders’ equity: Shareholders’ equity less perpetual preferred shares.

P & C: Property and casualty.

Property and casualty combined ratios: Loss and loss expense ratios, policy acquisition cost ratios and administrative expense ratios excluding life reinsurance business and financial services segment. Calculated on a GAAP basis.

Return on ordinary shareholders’ equity (ROE): Income (loss) excluding net realized gains (losses) less perpetual preferred securities divided by average ordinary shareholders’ equity.

Tangible equity: Shareholders’ equity less goodwill.

Total capitalization: Short-term debt, long-term debt, trust preferreds, perpetual preferred shares and shareholders’ equity.

YTD: Year to date.

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