8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

Current Report

Pursuant To Section 13 or 15 (d) of the

Securities Exchange Act of 1934

Date of Report (Date of earliest event reported) – October 23, 2007

ACE LIMITED

(Exact name of registrant as specified in its charter)

Cayman Islands	1-11778	98-0091805
(State or other jurisdiction of Incorporation)	(Commission File Number)	(I.R.S. Employer 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

On October 23, 2007, ACE Limited issued a press release reporting its third quarter 2007 results and the availability of its third quarter financial supplement. The press release and the financial supplement are attached hereto as Exhibit 99.1 and Exhibit 99.2, respectively, and are hereby incorporated herein by reference.

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

(c) Exhibits

Exhibit   Number	Description
99.1	Press release, dated October 23, 2007, reporting third quarter results
99.2	Third Quarter 2007 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/ Philip V. Bancroft
	Philip V. Bancroft
	Chief Financial Officer

DATE: October 23, 2007

EXHIBIT INDEX

Number	Description	Method of Filing
99.1	Press release, dated October 23 2007, reporting third quarter results	Furnished herewith
99.2	Third Quarter 2007 Financial Supplement	Furnished herewith

EX-99.1

Exhibit 99.1

FOR IMMEDIATE RELEASE

Investor Contact:	Helen M. Wilson
	(441) 299-9283
	helen.wilson@ace.bm
Media Contact:	Robert T. Grieves
	(212) 827-4444
	robert.grieves@ace-ina.com

ACE REPORTS THIRD QUARTER 2007 NET INCOME OF $656 MILLION, UP 13%;

OPERATING INCOME INCREASES 6% TO $692 MILLION

HAMILTON, Bermuda, October 23, 2007 — ACE Limited (NYSE: ACE) today reported net income for the third quarter ended September 30, 2007, of $1.95 per ordinary share after payment of preferred dividends, compared with net income of $1.73 per share for the same quarter last year. Income excluding net realized gains (losses) was $2.06 per share, compared with $1.96 per share for the same quarter of last year. ⁽¹⁾ Book value increased $851 million in the quarter.

Third Quarter Summary

(in millions, except per share amounts)

(Unaudited)

									(Per Share - Diluted)
	2007			2006			Change		2007			2006			Change
Net income	$	656		$	578		13	%	$	1.95		$	1.73		13	%
Net realized gains (losses), net of tax		(36	)		(74	)	—			(0.11	)		(0.23	)	—
Income excluding net realized gains (losses), net of tax (1)	$	692		$	652		6	%	$	2.06		$	1.96		5	%
Combined ratio		88.5	%		85.8	%

Net income for the first nine months of 2007 increased 22 percent to $5.98 per share, compared with $4.92 per share for the first nine months of 2006. For the first nine months of 2007, income excluding net realized gains (losses) and cumulative effect increased 18 percent to $6.02 per share, compared with $5.13 per share for the same period of 2006. ⁽¹⁾ Book value increased $1.7 billion or 12% for the first nine months of 2007.

Page 1/6

Nine Months Summary

(in millions, except per share amounts)

(Unaudited)

									(Per Share - Diluted)
	2007			2006			Change		2007			2006			Change
Net income	$	2,006		$	1,640		22	%	$	5.98		$	4.92		22	%
Net realized gains (losses), net of tax		(13	)		(72	)	—			(0.04	)		(0.22	)	—
Cumulative effect, net of tax(2)		—			4		—			—			0.01		—
Income excluding net realized gains and cumulative effect, net of tax (1)	$	2,019		$	1,708		18	%	$	6.02		$	5.13		17	%

Evan Greenberg, Chairman and Chief Executive Officer of ACE Limited, commented: “We had another excellent quarter, marked by strong earnings and book value growth. It was a particularly strong quarter given the record-breaking results of the third quarter last year. Year-to-date, operating and net income were up more than 18 percent and 22 percent, respectively, and book value has increased 12 percent or nearly $2 billion. ACE’s global reach, product breadth and underwriting insight are competitive advantages that enable us to take advantage of profitable opportunities around the world while we shrink those areas where prices and terms do not meet our standards.”

Other third quarter operating highlights were as follows:

• P&C net premiums written decreased .6% compared with the prior year quarter. Insurance net premiums written increased 2% and reinsurance net premiums written decreased 24%.

• P&C net premiums earned increased 1% over the prior year quarter. Insurance net premiums earned increased 3% and reinsurance net premiums earned decreased 14%.

• The combined ratio was 88.5% for the third quarter compared with 85.8% for the prior year quarter. The year-to-date combined ratio was 87.8% compared with 88.1% for the same period last year.

• P&C underwriting income was $350 million for the third quarter.

• Prior period development was favorable $70 million pre-tax for the quarter versus unfavorable $17 million pre-tax for the same quarter last year. Year-to-date, prior period development was favorable $128 million pre-tax versus favorable $29 million pre-tax for the same period last year.

• Pre-tax losses related to catastrophes were $21 million for the third quarter versus $6 million for the prior year quarter. Year-to-date, pre-tax losses related to catastrophes were $136 million versus $11 million for the same period last year.

• Operating cash flow amounted to $1.5 billion for the third quarter.

• Invested assets increased by $2 billion or 5% during the third quarter to $41.9 billion.

• Net unpaid losses and loss expenses increased $608 million to $22.6 billion from June 30, 2007.

• Net investment income in the third quarter increased 19% over the prior year quarter to $492 million.

• Shareholders’ equity at September 30, 2007, increased 12% from year-end 2006 to $16 billion.

• Return on average equity for the third quarter was 18.1%; excluding FAS 115, it was 18.6%⁽³⁾. Year-to-date, return on equity was 18.1%; excluding FAS 115, it was 18.8%.

• Book value per share as of September 30, 2007, increased 6% from June 30, 2007, while tangible book value per share increased 7% ⁽⁴⁾.

• Book value per share as of September 30, 2007, increased 12% from December 31, 2006, while tangible book value per share increased 15% ⁽⁴⁾.

Page 2/6

Details of our third quarter 2007 financial results for our business segments are available in the financial supplement. Key segment items include:

• Insurance-North American: Net premiums written decreased 1% compared with the prior year quarter. The combined ratio was 88.8%.

• Insurance-Overseas General: Net premiums written increased 6% over the prior year quarter. The combined ratio was 89.5%.

• Global Reinsurance: Net premiums written decreased 24% over the prior year quarter. The combined ratio was 73.6%.

• Life Insurance and Reinsurance: Net premiums written increased 38% over the prior year quarter. Income excluding net realized gains (losses) increased 31% over the prior year quarter to $47 million ⁽¹⁾.

Please refer to the ACE Limited Financial Supplement dated September 30, 2007, which is posted on the Company’s website in the Investor Information section, and access Financial Reports for more detailed information on individual segment performance, together with additional disclosure on reinsurance recoverable, loss reserves, investment portfolio and capital structure. The URL reference is: http://media.corporate-ir.net/media_files/nys/ace/reports/fin_supp_september_30_2007.xls. (Due to the length of this URL, it may be necessary to copy and paste this hyperlink into your Internet browser’s URL address field.)

ACE will host its third quarter earnings conference call and webcast on Wednesday, October 24, 2007, beginning at 8:30 a.m. ET. The earnings conference call will be available via live and archived webcast at www.acelimited.com or by dialing 888-230-5503 (within the United States) or 913-312-0841 (international); passcode 8840600. Please refer to the ACE Limited website in the Investor Information section under Calendar of Events for details. A replay of the call will be available for approximately one month. To listen to the replay, dial: 888-203-1112 (in the United States) or 719-457-0820 (international); passcode 8840600.

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

¹ Non-GAAP Financial Measures:

Operating Income or Income excluding net realized gains (losses) and cumulative effect, net of tax is a common performance measurement for insurance companies. 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) and net realized gains (losses) included in Other (income) expense related to partially-owned insurance companies because the amount of these gains (losses) is heavily influenced by, and fluctuates in part according to, the availability of market opportunities. We exclude the cumulative effect of a change in accounting principle net of tax because this amount resulted in a one-time adjustment to income.

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.

Tangible shareholders’ equity is shareholders’ equity less goodwill. See reconciliation of Non-GAAP Financial Measures beginning on page 21 in the financial supplement.

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

² The cumulative effect is a benefit resulting from the inclusion of a forfeiture rate on restricted stock in our stock compensation expense calculations, as required under Financial Accounting Standard (FAS) 123R.

³ Calculated using income excluding net realized gains (losses).

⁴ Book value per ordinary share is ordinary shareholders’ equity divided by the shares outstanding. Tangible book value per ordinary share is ordinary shareholders’ equity less goodwill divided by the shares outstanding.

Page 3/6

Cautionary Statement Regarding Forward-Looking Statements:

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, regulatory and other governmental developments, litigation tactics and developments, investigation developments and actual settlement terms, the amount and timing of reinsurance recoverable, credit developments among reinsurers, 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)

ACE Limited

Summary Consolidated Balance Sheets

(in millions of U.S. dollars, except per share data)

(Unaudited)

	September 30		December 31
	2007		2006
Assets
Total investments	$	41,467	$	36,601
Cash		506		565
Insurance and reinsurance balances receivable		3,324		3,580
Reinsurance recoverable		14,218		14,580
Other assets		12,439		11,809
Total assets	$	71,954	$	67,135
Liabilities
Unpaid losses and loss expenses	$	36,868	$	35,517
Unearned premiums		6,542		6,437
Other liabilities		12,509		10,903
Total liabilities	$	55,919	$	52,857
Shareholders’ equity
Total shareholders’ equity	$	16,035	$	14,278
Total liabilities and shareholders’ equity	$	71,954	$	67,135
Book value per ordinary share (4)	$	46.98	$	42.03

Page 4/6

ACE Limited

Summary Consolidated Financial Data

(in millions of U.S. dollars, except share, per share data, and ratios)

(Unaudited)

	Three Months Ended September 30						Nine Months Ended September 30
	2007			2006			2007			2006
Gross premiums written	$	4,463		$	4,297		$	13,596		$	13,391
Net premiums written		2,800			2,790			9,152			9,166
Net premiums earned		3,150			3,088			9,240			8,799
Losses and loss expenses		1,910			1,818			5,563			5,246
Life and annuity benefits		39			29			108			91
Policy acquisition costs		463			437			1,314			1,282
Administrative expenses		358			353			1,070			1,091
Underwriting income(1)		380			451			1,185			1,089
Net investment income		492			414			1,414			1,173
Net realized gains (losses)		—			(113	)		5			(113	)
Interest expense		44			46			132			134
Other (income) expense		32			(2	)		32			(19	)
Income tax expense		140			130			434			398
Cumulative effect, net of tax		—			—			—			4
Net income		656			578			2,006			1,640
Preference shares dividend		(11	)		(11	)		(33	)		(33	)
Net income available to holders of ordinary shares	$	645		$	567		$	1,973		$	1,607
Diluted earnings per share:
Income excluding net realized gains (losses) and cumulative effect (1)	$	2.06		$	1.96		$	6.02		$	5.13
Net income	$	1.95		$	1.73		$	5.98		$	4.92
Weighted average diluted shares outstanding		330.6			326.7			330.1			326.5
Loss and loss expense ratio		62.5	%		60.2	%		62.0	%		61.0	%
Policy acquisition cost ratio		14.7	%		14.2	%		14.3	%		14.7	%
Administrative expense ratio		11.3	%		11.4	%		11.5	%		12.4	%
Combined ratio		88.5	%		85.8	%		87.8	%		88.1	%

Ratios exclude life insurance and reinsurance business

Page 5/6

ACE Limited

Consolidated Supplemental Segment Information

(in millions of U.S. dollars)

(Unaudited)

	Three Months Ended September 30						Nine Months Ended September 30
	2007			2006			2007			2006
Gross Premiums Written
Insurance - North American	$	2,708		$	2,550		$	7,566		$	7,427
Insurance - Overseas General		1,427			1,387			4,707			4,456
Global Reinsurance		228			291			1,041			1,312
Life Insurance and Reinsurance		100			69			282			196
Total	$	4,463		$	4,297		$	13,596		$	13,391
Net Premiums Written
Insurance - North American	$	1,449		$	1,459		$	4,460		$	4,464
Insurance - Overseas General		1,041			978			3,399			3,207
Global Reinsurance		215			284			1,023			1,299
Life Insurance and Reinsurance		95			69			270			196
Total	$	2,800		$	2,790		$	9,152		$	9,166
Net Premiums Earned
Insurance - North American	$	1,595		$	1,547		$	4,589		$	4,248
Insurance - Overseas General		1,141			1,099			3,394			3,224
Global Reinsurance		319			373			987			1,131
Life Insurance and Reinsurance		95			69			270			196
Total	$	3,150		$	3,088		$	9,240		$	8,799
Income Excluding Net Realized Gains (Losses) and Cumulative Effect (1)
Insurance - North American	$	312		$	297		$	940		$	828
Insurance - Overseas General		210			226			608			567
Global Reinsurance		142			135			413			388
Life Insurance and Reinsurance		47			36			133			96
Corporate		(19	)		(42	)		(75	)		(171	)
Total	$	692		$	652		$	2,019		$	1,708

Page 6/6

EX-99.2

Exhibit 99.2

	Financial Supplement September 30, 2007
Investor Contact Helen M. Wilson Phone: (441) 299-9283 Fax: (441) 292-8675	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.
email: investorrelations@ace.bm	Cautionary Statement Regarding Forward-Looking Statements:
	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 and actual settlement terms, 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
II.	Consolidated Results
	- Consolidated Results - Consecutive Quarters	2
	- Summary Consolidated Balance Sheets	3
	- Consolidated Premiums by Line of Business	4
	- Consolidating Statement of Operations	5-6
III.	Segment Results
	- Insurance - North American	7
	- Insurance - Overseas General	8
	- Global Reinsurance	9-10
	- Life Insurance and Reinsurance	11
IV.	Balance Sheet Details
	- Loss Reserve Rollforward	12
	- Reinsurance Recoverable Analysis	13-16
	- Investment Portfolio	17
	- Net Realized and Unrealized Gains (Losses)	18
	- Capital Structure	19
	- Computation of Basic and Diluted Earnings Per Share	20
V.	Other Disclosures
	- Non-GAAP Financial Measures	21
	- Book Value per Ordinary Share	22
	- Comprehensive Income	23
	- Glossary	24

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

	Three months ended September 30								Nine months ended September 30
	2007			2006			% Change 3Q-07 vs. 3Q-06		2007			2006			% Change YTD-07 vs. YTD-06
Gross premiums written	$	4,463		$	4,297		4	%	$	13,596		$	13,391		2	%
Net premiums written	$	2,800		$	2,790		0	%	$	9,152		$	9,166		0	%
Net premiums earned	$	3,150		$	3,088		2	%	$	9,240		$	8,799		5	%
Net investment income	$	492		$	414		19	%	$	1,414		$	1,173		21	%
Net income	$	656		$	578		13	%	$	2,006		$	1,640		22	%
Income excluding net realized gains (losses) and cumulative effect (1)	$	692		$	652		6	%	$	2,019		$	1,708		18	%
Comprehensive income	$	909		$	1,094		-17	%	$	1,958		$	1,876		4	%
Operating cash flow	$	1,484		$	1,333		11	%	$	3,878		$	3,301		17	%
Combined ratio
Loss and loss expense ratio		62.5	%		60.2	%				62.0	%		61.0	%
Underwriting and administrative expense ratio		26.0	%		25.6	%				25.8	%		27.1	%
Combined ratio		88.5	%		85.8	%				87.8	%		88.1	%
Annualized ROE *		18.1	%		20.6	%				18.1	%		18.4	%
Annualized ROE, excluding FAS 115 *		18.6	%		21.0	%				18.8	%		19.1	%
Effective tax rate on income excluding net realized gains (losses) and cumulative effect		17	%		21	%				18	%		20	%
Diluted earnings per share
Income excluding net realized gains (losses) and cumulative effect (1)	$	2.06		$	1.96		5	%	$	6.02		$	5.13		17	%
Net income	$	1.95		$	1.73		13	%	$	5.98		$	4.92		22	%
Book value per ordinary share	$	46.98		$	39.74		18	%	$	46.98		$	39.74		18	%
Tangible book value per ordinary share	$	38.69		$	31.60		22	%	$	38.69		$	31.60		22	%
Weighted average basic ordinary shares outstanding		325.2			321.9					324.7			321.5
Weighted average diluted ordinary shares outstanding		330.6			326.7					330.1			326.5
Debt/ total capitalization		11.6	%		13.4	%				11.6	%		13.4	%

(1) See page 21 Non-GAAP Financial Measures.

* Calculated using income excluding net realized gains (losses) and cumulative effect of a change in accounting principle (cumulative effect)

Financial Highlights Page 1

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

ACE Limited Consolidated

	3Q-07			2Q-07			1Q-07			4Q-06			3Q-06			YTD 2007			YTD 2006			Full Year 2006
Property and Casualty
Gross premiums written	$	4,363		$	4,545		$	4,406		$	3,932		$	4,228		$	13,314		$	13,195		$	17,127
Net premiums written		2,705			2,995			3,182			2,786			2,721			8,882			8,970			11,756
Net premiums earned		3,055			2,921			2,994			2,948			3,019			8,970			8,603			11,551
Losses and loss expenses		1,910			1,793			1,860			1,824			1,818			5,563			5,246			7,070
Policy acquisition costs		450			422			406			424			430			1,278			1,265			1,689
Administrative expenses		345			344			344			353			345			1,033			1,068			1,421
P&C underwriting income	$	350		$	362		$	384		$	347		$	426		$	1,096		$	1,024		$	1,371
Life underwriting income excluding investment income		30			30			29			25			25			89			65			90
Net investment income		492			471			451			428			414			1,414			1,173			1,601
Net realized gains (losses)		—			(11	)		16			15			(113	)		5			(113	)		(98	)
Interest expense		44			42			46			42			46			132			134			176
Other (income) expense (3)		32			(4	)		4			(16	)		(2	)		32			(19	)		(35	)
Income tax expense (benefit)		140			165			129			124			130			434			398			522
Cumulative effect of a change in accounting principle, net of tax		—			—			—			—			—			—			4			4
Net income	$	656		$	649		$	701		$	665		$	578		$	2,006		$	1,640		$	2,305
Net realized gains (losses)		—			(11	)		16			15			(113	)		5			(113	)		(98	)
Net realized gains (losses) in other (income) expense		(38	)		—			—			—			—			(38	)		—			—
Tax expense (benefit) on net realized gains (losses)		(2	)		4			(22	)		(7	)		(39	)		(20	)		(41	)		(48	)
Cumulative effect of a change in accounting principle, net of tax		—			—			—			—			—			—			4			4
Income excluding net realized gains (losses) and cumulative effect (2)	$	692		$	664		$	663		$	643		$	652		$	2,019		$	1,708		$	2,351
% Change versus prior year period (1)
Property and Casualty net premiums written		-1	%		0	%		-2	%		9	%		-4	%		-1	%		0	%		2	%
Property and Casualty net premiums earned		1	%		3	%		9	%		6	%		0	%		4	%		-1	%		0	%
Other ratios
Net premiums written/gross premiums written		62	%		66	%		72	%		71	%		64	%		67	%		68	%		69	%
Effective tax rate on income excluding net realized gains (losses) and cumulative effect		17	%		20	%		19	%		17	%		21	%		18	%		20	%		20	%
Combined ratio (1)
Loss and loss expense ratio		62.5	%		61.4	%		62.1	%		61.8	%		60.2	%		62.0	%		61.0	%		61.2	%
Policy acquisition cost ratio		14.7	%		14.5	%		13.5	%		14.4	%		14.2	%		14.3	%		14.7	%		14.6	%
Administrative expense ratio		11.3	%		11.7	%		11.5	%		12.0	%		11.4	%		11.5	%		12.4	%		12.3	%
Combined ratio		88.5	%		87.6	%		87.1	%		88.2	%		85.8	%		87.8	%		88.1	%		88.1	%
Net premiums earned A&H	$	418		$	420		$	394		$	378		$	356		$	1,232		$	1,049		$	1,427
Expense ratio P&C		26.0	%		26.2	%		25.0	%		26.4	%		25.6	%		25.8	%		27.1	%		26.9	%
Expense ratio excluding A&H		22.8	%		23.6	%		21.9	%		23.8	%		23.2	%		22.7	%		24.9	%		24.5	%
Large losses and other items (1)
Catastrophe and other large losses (before tax)	$	21		$	81		$	34		$	6		$	6		$	136		$	11		$	17
Prior period development - unfavorable (favorable)	$	(70	)	$	(40	)	$	(18	)	$	17		$	17		$	(128	)	$	(29	)	$	(12	)

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

(2) See page 21 Non-GAAP Financial Measures.

(3) Includes $38 million of net realized investment and derivative losses related to our unconsolidated insurance affiliates.

Consolidated Results Page 2

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

	September 30 2007		June 30 2007		March 31 2007		December 31 2006
	(Unaudited)		(Unaudited)		(Unaudited)		(Audited)
Assets
Fixed maturities available for sale, at fair value	$	32,632	$	30,591	$	29,934	$	28,540
Fixed maturities held to maturity, at amortized cost		2,979		3,013		3,060		3,047
Equity securities, at fair value		1,866		1,896		1,772		1,713
Short-term investments, at fair value		2,940		2,919		2,658		2,456
Other investments		1,050		934		896		845
Total investments		41,467		39,353		38,320		36,601
Cash		506		621		639		565
Securities lending collateral		2,301		2,811		2,905		2,171
Insurance and reinsurance balances receivable		3,324		3,923		3,689		3,580
Reinsurance recoverable		14,218		14,081		14,374		14,580
Deferred policy acquisition costs		1,138		1,160		1,133		1,077
Prepaid reinsurance premiums		1,687		1,854		1,621		1,586
Goodwill		2,731		2,731		2,731		2,731
Deferred tax assets		1,163		1,163		1,192		1,165
Investments in partially owned insurance companies		786		826		804		789
Other assets		2,633		2,497		2,366		2,290
Total assets	$	71,954	$	71,020	$	69,774	$	67,135
Liabilities
Unpaid losses and loss expenses	$	36,868	$	36,123	$	35,813	$	35,517
Unearned premiums		6,542		7,001		6,670		6,437
Future policy benefits for life and annuity contracts		527		521		521		518
Insurance and reinsurance balances payable		2,592		2,690		2,511		2,449
Deposit liabilities		355		363		327		335
Securities lending payable		2,301		2,811		2,905		2,171
Payable for securities purchased		2,407		2,257		1,338		1,286
Accounts payable, accrued expenses and other liabilities		1,689		1,445		1,514		1,541
Income taxes payable		174		168		265		156
Short-term debt		87		85		581		578
Long-term debt		2,068		2,063		2,061		1,560
Trust preferred securities		309		309		309		309
Total liabilities		55,919		55,836		54,815		52,857
Shareholders’ equity
Total shareholders’ equity, excl. AOCI		15,379		14,781		14,181		13,562
Accumulated other comprehensive income (AOCI)		656		403		778		716
Total shareholders’ equity		16,035		15,184		14,959		14,278
Total liabilities and shareholders’ equity	$	71,954	$	71,020	$	69,774	$	67,135
Book value per ordinary share (1)	$	46.98	$	44.46	$	43.87	$	42.03
Tangible book value per ordinary share (1)	$	38.69	$	36.16	$	35.55	$	33.66

(1) See page 21 Non-GAAP Financial Measures.

Consol Bal Sheet Page 3

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

ACE Limited Consolidated

	3Q-07		% of Total Consolidated		3Q-06		% of Total Consolidated		% Change 3Q-07 vs. 3Q-06		YTD 2007		% of Total Consolidated		YTD 2006		% of Total Consolidated		% Change YTD-07 vs. YTD-06
Net premiums written
Property and all other	$	937	34	%	$	892	32	%	5	%	$	2,937	32	%	$	2,943	32	%	0	%
Casualty		1,371	49	%		1,494	54	%	-8	%		4,697	51	%		4,965	54	%	-5	%
Personal accident (A&H)		397	14	%		335	12	%	19	%		1,248	14	%		1,062	12	%	18	%
Total P&C		2,705	97	%		2,721	98	%	-1	%		8,882	97	%		8,970	98	%	-1	%
Life		95	3	%		69	2	%	38	%		270	3	%		196	2	%	38	%
Total Consolidated	$	2,800	100	%	$	2,790	100	%	0	%	$	9,152	100	%	$	9,166	100	%	0	%
Net premiums earned
Property and all other	$	1,060	34	%	$	1,013	33	%	5	%	$	2,830	31	%	$	2,694	31	%	5	%
Casualty		1,577	50	%		1,650	53	%	-4	%		4,908	53	%		4,860	55	%	1	%
Personal accident (A&H)		418	13	%		356	12	%	17	%		1,232	13	%		1,049	12	%	17	%
Total P&C		3,055	97	%		3,019	98	%	1	%		8,970	97	%		8,603	98	%	4	%
Life		95	3	%		69	2	%	38	%		270	3	%		196	2	%	38	%
Total Consolidated	$	3,150	100	%	$	3,088	100	%	2	%	$	9,240	100	%	$	8,799	100	%	5	%

Line of Business Page 4

	ACE Limited
	Consolidating Statement of Operations
	Three months ended September 30, 2007 and 2006
	(in millions of U.S. dollars)
	(Unaudited)

	Insurance - North American			Insurance - Overseas General			Global Reinsurance			Corporate & Other			Consolidated P&C			Life Insurance & Reinsurance			ACE Consolidated
September 30, 2007
Gross premiums written	$	2,708		$	1,427		$	228		$	—		$	4,363		$	100		$	4,463
Net premiums written		1,449			1,041			215			—			2,705			95			2,800
Net premiums earned		1,595			1,141			319			—			3,055			95			3,150
Losses and loss expenses		1,138			611			161			—			1,910			—			1,910
Life and annuity benefits		—			—			—			—			—			39			39
Policy acquisition costs		150			240			60			—			450			13			463
Administrative expenses		129			170			14			32			345			13			358
Underwriting income (loss)		178			120			84			(32	)		350			30			380
Net investment income		260			116			69			33			478			14			492
Net realized gains (losses)		29			(5	)		25			2			51			(51	)		—
Interest expense		—			—			—			44			44			—			44
Other (income) expense		1			(12	)		—			43			32			—			32
Income tax expense (benefit)		125			26			11			(19	)		143			(3	)		140
Net income (loss)		341			217			167			(65	)		660			(4	)		656
Net realized gains (losses)		29			(5	)		25			2			51			(51	)		—
Net realized gains (losses) in other (income) expense		—			11			—			(49	)		(38	)		—			(38	)
Tax expense (benefit) on net realized gains (losses)		—			(1	)		—			(1	)		(2	)		—			(2	)
Income (loss) excluding net realized gains (losses) (1)	$	312		$	210		$	142		$	(19	)	$	645		$	47		$	692
September 30, 2006
Gross premiums written	$	2,550		$	1,387		$	291		$	—		$	4,228		$	69		$	4,297
Net premiums written		1,459			978			284			—			2,721			69			2,790
Net premiums earned		1,547			1,099			373			—			3,019			69			3,088
Losses and loss expenses		1,090			532			196			—			1,818			—			1,818
Life and annuity benefits		—			—			—			—			—			29			29
Policy acquisition costs		142			217			71			—			430			7			437
Administrative expenses		129			155			16			45			345			8			353
Underwriting income (loss)		186			195			90			(45	)		426			25			451
Net investment income		228			97			56			22			403			11			414
Net realized gains (losses)		(34	)		(32	)		2			(35	)		(99	)		(14	)		(113	)
Interest expense		—			—			—			46			46			—			46
Other (income) expense		11			(3	)		1			(11	)		(2	)		—			(2	)
Income tax expense (benefit)		74			63			9			(16	)		130			—			130
Net income (loss)		295			200			138			(77	)		556			22			578
Net realized gains (losses)		(34	)		(32	)		2			(35	)		(99	)		(14	)		(113	)
Tax expense (benefit) on net realized gains (losses)		(32	)		(6	)		(1	)		—			(39	)		—			(39	)
Income (loss) excluding net realized gains (losses) (1)	$	297		$	226		$	135		$	(42	)	$	616		$	36		$	652

(1) See page 21 Non-GAAP Financial Measures.

Segment 2007 Qtr Page 5

	ACE Limited
	Consolidating Statement of Operations
	Nine months ended September 30, 2007 and 2006
	(in millions of U.S. dollars)
	(Unaudited)

	Insurance - North American			Insurance - Overseas General			Global Reinsurance			Corporate & Other			Consolidated P&C			Life Insurance & Reinsurance			ACE Consolidated
September 30, 2007
Gross premiums written	$	7,566		$	4,707		$	1,041		$	—		$	13,314		$	282		$	13,596
Net premiums written		4,460			3,399			1,023			—			8,882			270			9,152
Net premiums earned		4,589			3,394			987			—			8,970			270			9,240
Losses and loss expenses		3,265			1,789			509			—			5,563			—			5,563
Life and annuity benefits		—			—			—			—			—			108			108
Policy acquisition costs		394			694			190			—			1,278			36			1,314
Administrative expenses		392			494			47			100			1,033			37			1,070
Underwriting income (loss)		538			417			241			(100	)		1,096			89			1,185
Net investment income		758			331			201			84			1,374			40			1,414
Net realized gains (losses)		81			(58	)		24			14			61			(56	)		5
Interest expense		—			—			—			132			132			—			132
Other (income) expense		11			(8	)		3			26			32			—			32
Income tax expense (benefit)		368			124			25			(79	)		438			(4	)		434
Net income (loss)		998			574			438			(81	)		1,929			77			2,006
Net realized gains (losses)		81			(58	)		24			14			61			(56	)		5
Net realized gains (losses) in other (income) expense		—			11			—			(49	)		(38	)		—			(38	)
Tax expense (benefit) on net realized gains (losses)		23			(13	)		(1	)		(29	)		(20	)		—			(20	)
Income (loss) excluding net realized gains (losses) (1)	$	940		$	608		$	413		$	(75	)	$	1,886		$	133		$	2,019
September 30, 2006
Gross premiums written	$	7,427		$	4,456		$	1,312		$	—		$	13,195		$	196		$	13,391
Net premiums written		4,464			3,207			1,299			—			8,970			196			9,166
Net premiums earned		4,248			3,224			1,131			—			8,603			196			8,799
Losses and loss expenses		2,972			1,683			590			1			5,246			—			5,246
Life and annuity benefits		—			—			—			—			—			91			91
Policy acquisition costs		408			630			227			—			1,265			17			1,282
Administrative expenses		370			452			48			198			1,068			23			1,091
Underwriting income (loss)		498			459			266			(199	)		1,024			65			1,089
Net investment income		643			273			159			68			1,143			30			1,173
Net realized gains (losses)		(72	)		(24	)		(7	)		13			(90	)		(23	)		(113	)
Interest expense		—			—			—			134			134			—			134
Other (income) expense		11			3			6			(39	)		(19	)		—			(19	)
Income tax expense (benefit)		263			163			29			(56	)		399			(1	)		398
Cumulative effect of a change in accounting principle, net of tax		—			—			—			4			4			—			4
Net income (loss)		795			542			383			(153	)		1,567			73			1,640
Net realized gains (losses)		(72	)		(24	)		(7	)		13			(90	)		(23	)		(113	)
Tax expense (benefit) on net realized gains (losses)		(39	)		1			(2	)		(1	)		(41	)		—			(41	)
Cumulative effect of a change in accounting principle, net of tax		—			—			—			4			4			—			4
Income (loss) excluding net realized gains (losses) (1)	$	828		$	567		$	388		$	(171	)	$	1,612		$	96		$	1,708

(1) See page 21 Non-GAAP Financial Measures.

Segment 2007 YTD Page 6

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

Insurance - North American

	3Q-07			2Q-07			1Q-07			4Q-06			3Q-06			YTD 2007			YTD 2006			Full Year 2006
Gross premiums written	$	2,708		$	2,589		$	2,269		$	2,236		$	2,550		$	7,566		$	7,427		$	9,663
Net premiums written		1,449			1,497			1,514			1,476			1,459			4,460			4,464			5,940
Net premiums earned		1,595			1,455			1,539			1,471			1,547			4,589			4,248			5,719
Losses and loss expenses		1,138			1,016			1,111			1,054			1,090			3,265			2,972			4,026
Policy acquisition costs		150			128			116			122			142			394			408			530
Administrative expenses		129			130			133			132			129			392			370			502
Underwriting income		178			181			179			163			186			538			498			661
Net investment income		260			257			241			233			228			758			643			876
Net realized gains (losses)		29			15			37			(11	)		(34	)		81			(72	)		(83	)
Interest expense		—			—			—			—			—			—			—			—
Other (income) expense		1			1			9			(13	)		11			11			11			(2	)
Income tax expense (benefit)		125			115			128			89			74			368			263			352
Net income		341			337			320			309			295			998			795			1,104
Net realized gains (losses)		29			15			37			(11	)		(34	)		81			(72	)		(83	)
Tax expense (benefit) on net realized gains (losses)		—			8			15			(16	)		(32	)		23			(39	)		(55	)
Income excluding net realized gains (losses) (1)	$	312		$	330		$	298		$	304		$	297		$	940		$	828		$	1,132
Combined ratio
Loss and loss expense ratio		71.3	%		69.8	%		72.2	%		71.7	%		70.4	%		71.1	%		70.0	%		70.4	%
Policy acquisition cost ratio		9.4	%		8.8	%		7.5	%		8.3	%		9.1	%		8.6	%		9.6	%		9.2	%
Administrative expense ratio		8.1	%		8.9	%		8.7	%		8.9	%		8.4	%		8.5	%		8.7	%		8.8	%
Combined ratio		88.8	%		87.5	%		88.4	%		88.9	%		87.9	%		88.2	%		88.3	%		88.4	%
Large losses and other items (before tax)
Catastrophe and other large losses (before tax)	$	—		$	16		$	—		$	—		$	—		$	16		$	—		$	—
Prior period development - unfavorable (favorable)	$	4		$	(6	)	$	10		$	20		$	30		$	8		$	45		$	65
% Change versus prior year period
Net premiums written		-1	%		0	%		1	%		16	%		-4	%		0	%		-2	%		2	%
Net premiums earned		3	%		6	%		15	%		9	%		-3	%		8	%		-3	%		0	%
Other ratios
Net premiums written/gross premiums written		54	%		58	%		67	%		66	%		57	%		59	%		60	%		61	%

(1) See page 21 Non-GAAP Financial Measures.

Insurance-North American Page 7

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

Insurance - Overseas General

	3Q-07			2Q-07			1Q-07			4Q-06			3Q-06			YTD 2007			YTD 2006			Full Year 2006
Gross premiums written	$	1,427		$	1,621		$	1,659		$	1,441		$	1,387		$	4,707		$	4,456		$	5,897
Net premiums written		1,041			1,166			1,192			1,059			978			3,399			3,207			4,266
Net premiums earned		1,141			1,141			1,112			1,097			1,099			3,394			3,224			4,321
Losses and loss expenses		611			614			564			576			532			1,789			1,683			2,259
Policy acquisition costs		240			230			224			226			217			694			630			856
Administrative expenses		170			162			162			157			155			494			452			609
Underwriting income		120			135			162			138			195			417			459			597
Net investment income		116			111			104			97			97			331			273			370
Net realized gains (losses)		(5	)		(27	)		(26	)		8			(32	)		(58	)		(24	)		(16	)
Interest expense		—			—			—			—			—			—			—			—
Other (income) expense		(12	)		1			3			7			(3	)		(8	)		3			10
Income tax expense (benefit)		26			58			40			43			63			124			163			206
Net income		217			160			197			193			200			574			542			735
Net realized gains (losses)		(5	)		(27	)		(26	)		8			(32	)		(58	)		(24	)		(16	)
Net realized gains (losses) in other (income) expense		11			—			—			—			—			11			—			—
Tax expense (benefit) on net realized gains (losses)		(1	)		(4	)		(8	)		2			(6	)		(13	)		1			3
Income excluding net realized gains (losses) (1)	$	210		$	183		$	215		$	187		$	226		$	608		$	567		$	754
Combined ratio
Loss and loss expense ratio		53.6	%		53.9	%		50.7	%		52.5	%		48.4	%		52.7	%		52.2	%		52.3	%
Policy acquisition cost ratio		21.1	%		20.1	%		20.2	%		20.6	%		19.8	%		20.5	%		19.6	%		19.8	%
Administrative expense ratio		14.8	%		14.2	%		14.5	%		14.3	%		14.0	%		14.5	%		14.0	%		14.1	%
Combined ratio		89.5	%		88.2	%		85.4	%		87.4	%		82.2	%		87.7	%		85.8	%		86.2	%
Large losses and other items
Catastrophe and other large losses (before tax)	$	8		$	58		$	15		$	—		$	3			81		$	3		$	3
Prior period development - unfavorable (favorable)	$	(64	)	$	(31	)	$	(21	)	$	4		$	(16	)		(116	)	$	(76	)	$	(72	)
% Change versus prior year period
Net premiums written		6	%		8	%		4	%		4	%		5	%		6	%		1	%		2	%
Net premiums earned		4	%		5	%		7	%		5	%		7	%		5	%		1	%		2	%
Other ratios
Net premiums written/gross premiums written		73	%		72	%		72	%		73	%		71	%		72	%		72	%		72	%

(1) See page 21 Non-GAAP Financial Measures.

Insurance-Overseas General Page 8

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

Global Reinsurance

	3Q-07			2Q-07			1Q-07			4Q-06			3Q-06			YTD 2007			YTD 2006			Full Year 2006
Gross premiums written	$	228		$	335		$	478		$	255		$	291		$	1,041		$	1,312		$	1,567
Net premiums written		215			332			476			251			284			1,023			1,299			1,550
Net premiums earned		319			325			343			380			373			987			1,131			1,511
Losses and loss expenses		161			163			185			194			196			509			590			784
Policy acquisition costs		60			64			66			76			71			190			227			303
Administrative expenses		14			16			17			14			16			47			48			62
Underwriting income		84			82			75			96			90			241			266			362
Net investment income		69			66			66			62			56			201			159			221
Net realized gains (losses)		25			(7	)		6			17			2			24			(7	)		10
Interest expense		—			—			—			—			—			—			—			—
Other (income) expense		—			2			1			2			1			3			6			8
Income tax expense (benefit)		11			7			7			9			9			25			29			38
Net income		167			132			139			164			138			438			383			547
Net realized gains (losses)		25			(7	)		6			17			2			24			(7	)		10
Tax expense (benefit) on net realized gains (losses)		—			—			(1	)		1			(1	)		(1	)		(2	)		(1	)
Income excluding net realized gains (losses) (1)	$	142		$	139		$	132		$	148		$	135		$	413		$	388		$	536
Combined ratio
Loss and loss expense ratio		50.6	%		50.1	%		53.8	%		50.9	%		52.5	%		51.6	%		52.2	%		51.8	%
Policy acquisition cost ratio		18.8	%		19.9	%		19.2	%		20.1	%		19.0	%		19.3	%		20.1	%		20.1	%
Administrative expense ratio		4.2	%		5.0	%		5.0	%		3.7	%		4.2	%		4.7	%		4.2	%		4.1	%
Combined ratio		73.6	%		75.0	%		78.0	%		74.7	%		75.7	%		75.6	%		76.5	%		76.0	%
Large losses and other items
Catastrophe and other large losses (before tax)	$	13		$	7		$	19		$	6		$	3			39		$	8		$	14
Prior period development - unfavorable (favorable)	$	(10	)	$	(3	)	$	(7	)	$	(7	)	$	3			(20	)	$	2		$	(5	)

(1) See page 21 Non-GAAP Financial Measures.

Global Reinsurance Page 9

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

Global Reinsurance

	3Q-07			2Q-07			1Q-07			4Q-06			3Q-06			YTD 2007			YTD 2006			Full Year 2006
% Change versus prior year period
Net premiums written		-24	%		-20	%		-21	%		-9	%		-25	%		-21	%		2	%		0	%
Net premiums earned		-14	%		-16	%		-8	%		-4	%		-9	%		-13	%		0	%		-1	%
Other ratios
Net premiums written/gross premiums written		94	%		99	%		100	%		98	%		98	%		98	%		99	%		99	%
Global Reinsurance - By Division
	3Q-07			2Q-07			1Q-07			4Q-06			3Q-06			YTD 2007			YTD 2006			Full Year 2006
Gross premiums written
ACE Tempest Re Bermuda	$	51		$	121		$	174		$	16		$	53		$	346		$	370		$	386
ACE Tempest Re USA		134			175			188			181			178			497			722			903
ACE Tempest Re Europe		39			35			112			58			60			186			220			278
ACE Tempest Re Canada		4			4			4			—			—			12			—			—
Total	$	228		$	335		$	478		$	255		$	291		$	1,041		$	1,312		$	1,567
Net premiums written
ACE Tempest Re Bermuda	$	40		$	120		$	174		$	13		$	49		$	334		$	366		$	379
ACE Tempest Re USA		134			175			188			181			177			497			721			902
ACE Tempest Re Europe		37			33			110			57			58			180			212			269
ACE Tempest Re Canada		4			4			4			—			—			12			—			—
Total	$	215		$	332		$	476		$	251		$	284		$	1,023		$	1,299		$	1,550
Net premiums earned
ACE Tempest Re Bermuda	$	90		$	87		$	88		$	96		$	97		$	265		$	271		$	367
ACE Tempest Re USA		167			177			187			216			210			531			656			872
ACE Tempest Re Europe		59			60			67			68			66			186			204			272
ACE Tempest Re Canada		3			1			1			—			—			5			—			—
Total	$	319		$	325		$	343		$	380		$	373		$	987		$	1,131		$	1,511
Net premiums written/gross premiums written
ACE Tempest Re Bermuda		78	%		99	%		100	%		81	%		92	%		97	%		99	%		98	%
ACE Tempest Re USA		100	%		100	%		100	%		100	%		99	%		100	%		100	%		100	%
ACE Tempest Re Europe		95	%		94	%		98	%		98	%		97	%		97	%		96	%		97	%
ACE Tempest Re Canada		100	%		100	%		100	%		—			—			100	%		—			—
Total NPW/GPW		94	%		99	%		100	%		98	%		98	%		98	%		99	%		99	%

Global Reinsurance 2 Page 10

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

Life Insurance and Reinsurance

	3Q-07			2Q-07			1Q-07			4Q-06			3Q-06			YTD 2007			YTD 2006			Full Year 2006
Gross premiums written (1)	$	100		$	92		$	90		$	78		$	69		$	282		$	196		$	274
Net premiums written		95			87			88			78			69			270			196			274
Net premiums earned		95			87			88			78			69			270			196			274
Life and annuity benefits		39			33			36			32			29			108			91			123
Policy acquisition costs		13			12			11			9			7			36			17			26
Administrative expenses		13			12			12			12			8			37			23			35
Net investment income		14			14			12			12			11			40			30			42
Life underwriting income (2)		44			44			41			37			36			129			95			132
Net realized gains (losses)		(51	)		(1	)		(4	)		(13	)		(14	)		(56	)		(23	)		(36	)
Income tax expense (benefit)		(3	)		1			(2	)		(5	)		—			(4	)		(1	)		(6	)
Net income		(4	)		42			39			29			22			77			73			102
Net realized gains (losses)		(51	)		(1	)		(4	)		(13	)		(14	)		(56	)		(23	)		(36	)
Tax expense (benefit) on net realized gains (losses)		—			—			—			—			—			—			—			—
Income excluding net realized gains (losses) (3)	$	47		$	43		$	43		$	42		$	36		$	133		$	96		$	138

(1) Consistent with GAAP, premiums collected on universal life and investment contracts are considered deposits and excluded from premium revenue. For the quarter ended September 30, 2007 and June 30, 2007, premiums collected on universal life and investment contracts that were excluded from premium revenue above aggregated to $17.4 million and $10.6 million, respectively. Previous to Q2-07, premiums collected on universal life contracts were inconsequential.

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

(3) See page 21 Non-GAAP Financial Measures.

Life Page 11

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

	Total									Ongoing									Run-off (1)
	Unpaid Losses									Unpaid Losses									Unpaid Losses
	Gross			Ceded			Net			Gross			Ceded			Net			Gross			Ceded			Net
Balance at December 31, 2005	$	35,055		$	14,597		$	20,458		$	27,174		$	9,269		$	17,905		$	7,881		$	5,328		$	2,553
Losses and loss expenses incurred		2,130			450			1,680			2,143			476			1,667			(13	)		(26	)		13
Losses and loss expenses paid		(1,686	)		(503	)		(1,183	)		(1,486	)		(353	)		(1,133	)		(200	)		(150	)		(50	)
Other (incl. foreign exch. revaluation)		9			10			(1	)		16			10			6			(7	)		—			(7	)
Balance at March 31, 2006		35,508			14,554			20,954			27,847			9,402			18,445			7,661			5,152			2,509
Losses and loss expenses incurred		2,378			630			1,748			2,349			618			1,731			29			12			17
Losses and loss expenses paid		(2,536	)		(1,082	)		(1,454	)		(2,344	)		(938	)		(1,406	)		(192	)		(144	)		(48	)
Other (incl. foreign exch. revaluation)		214			69			145			212			69			143			2			—			2
Balance at June 30, 2006		35,564			14,171			21,393			28,064			9,151			18,913			7,500			5,020			2,480
Losses and loss expenses incurred		2,582			764			1,818			2,588			797			1,791			(6	)		(33	)		27
Losses and loss expenses paid		(2,395	)		(975	)		(1,420	)		(2,223	)		(893	)		(1,330	)		(172	)		(82	)		(90	)
Other (Sale of certain run-off subsidiaries) (2)		(789	)		(317	)		(472	)		—			—			—			(789	)		(317	)		(472	)
Other (incl. foreign exch. revaluation)		187			66			121			199			69			130			(12	)		(3	)		(9	)
Balance at September 30, 2006		35,149			13,709			21,440			28,628			9,124			19,504			6,521			4,585			1,936
Losses and loss expenses incurred		2,780			956			1,824			2,477			710			1,767			303			246			57
Losses and loss expenses paid		(2,613	)		(1,211	)		(1,402	)		(2,405	)		(1,078	)		(1,327	)		(208	)		(133	)		(75	)
Other (incl. foreign exch. revaluation)		201			55			146			289			221			68			(88	)		(166	)		78
Balance at December 31, 2006		35,517			13,509			22,008			28,989			8,977			20,012			6,528			4,532			1,996
Losses and loss expenses incurred		2,703			843			1,860			2,690			832			1,858			13			11			2
Losses and loss expenses paid		(2,363	)		(943	)		(1,420	)		(2,206	)		(797	)		(1,409	)		(157	)		(146	)		(11	)
Other (incl. foreign exch. revaluation)		(44	)		4			(48	)		(44	)		4			(48	)		—			—			—
Balance at March 31, 2007		35,813			13,413			22,400			29,429			9,016			20,413			6,384			4,397			1,987
Losses and loss expenses incurred		2,280			487			1,793			2,249			473			1,776			31			14			17
Losses and loss expenses paid		(2,111	)		(758	)		(1,353	)		(1,977	)		(637	)		(1,340	)		(134	)		(121	)		(13	)
Other (incl. foreign exch. revaluation)		141			34			107			140			34			106			1			—			1
Balance at June 30, 2007		36,123			13,176			22,947			29,841			8,886			20,955			6,282			4,290			1,992
Losses and loss expenses incurred		3,010			1,100			1,910			2,999			1,093			1,906			11			7			4
Losses and loss expenses paid		(2,429	)		(948	)		(1,481	)		(2,269	)		(833	)		(1,436	)		(160	)		(115	)		(45	)
Other (incl. foreign exch. revaluation)		164			58			106			164			58			106			—			—			—
Balance at September 30, 2007	$	36,868		$	13,386		$	23,482		$	30,735		$	9,204		$	21,531		$	6,133		$	4,182		$	1,951

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

(2) During the third quarter of 2006, ACE Limited completed the sale of three run-off reinsurance subsidiaries, ACE American Reinsurance Company, Brandywine Reinsurance Co. (UK) Ltd. and Brandywine Reinsurance Company S.A.-N.V. to Randall & Quilter Investment Holdings Limited.

Loss Reserve Rollforward Page 12

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

Net Reinsurance Recoverable by Division

	September 30 2007			June 30 2007			March 31 2007			December 31 2006
Reinsurance recoverable on paid losses and loss expenses
Active operations	$	761		$	820		$	922		$	1,013
Brandywine		227			245			242			251
Westchester Run-off		29			33			42			36
Other Run-off		13			16			17			16
Total	$	1,030		$	1,114		$	1,223		$	1,316
Reinsurance recoverable on unpaid losses and loss expenses
Active operations	$	9,753		$	9,418		$	9,505		$	9,479
Brandywine		3,211			3,303			3,425			3,535
Westchester Run-off		671			674			690			699
Other Run-off		202			221			202			200
Total	$	13,837		$	13,616		$	13,822		$	13,913
Gross reinsurance recoverable
Active operations	$	10,514		$	10,238		$	10,427		$	10,515
Brandywine		3,438			3,548			3,667			3,786
Westchester Run-off		700			707			732			712
Other Run-off		215			237			219			216
Total	$	14,867		$	14,730		$	15,045		$	15,229
Provision for uncollectible reinsurance
Active operations	$	(430	)	$	(427	)	$	(455	)	$	(427	)
Brandywine		(164	)		(169	)		(169	)		(172	)
Westchester Run-off		(31	)		(31	)		(30	)		(30	)
Other Run-off		(24	)		(22	)		(17	)		(20	)
Total	$	(649	)	$	(649	)	$	(671	)	$	(649	)
Net reinsurance recoverable
Active operations	$	10,084		$	9,811		$	9,972		$	10,088
Brandywine		3,274			3,379			3,498			3,614
Westchester Run-off		669			676			702			682
Other Run-off		191			215			202			196
Total	$	14,218		$	14,081		$	14,374		$	14,580

Reinsurance Recoverable Page 13

	ACE Limited
	Reinsurance Recoverable Analysis - 2
	(in millions of U.S. dollars)
	(Unaudited)

Reinsurance Recoverable for Active Operations

	June 30, 2007
	Recoverable		Provision		% of Gross
Categories
Top 10 reinsurers	$	4,988	$	56	1.1	%
Other reinsurers balances >$20 million		2,180		56	2.6	%
Other reinsurers balances <$20 million		528		55	10.4	%
Mandatory pools and government agencies		578		3	0.5	%
Structured settlements		220		7	3.2	%
Captives		1,377		1	0.1	%
Other (1)		367		249	67.8	%
Total	$	10,238	$	427	4.2	%

At June 30, 2007, $7.4 billion of the active operations’ recoverables were from rated reinsurers, of which 95.1% were rated the equivalent of A- or better by internationally recognized rating agencies. The Company held collateral of $3.2 billion, of which $2 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)
AGRI General Ins Co American International Group (AIG) Berkshire Hathaway Insurance Group Chubb Insurance Group Federal Crop Insurance Corp HDI Haftpflichtverband Der Deutschen     Industrie Vag (Hannover) Lloyd’s Of London Munich Re Group Swiss Re Group XL Capital Group	AIOI Insurance Group Allianz Allied World Assurance Group Arch Capital Aspen Insurance Holdings Ltd AXA CIGNA Converium Group Dow Chemical Co Electric Insurance Company Group Endurance Specialty Holdings Ltd Everest Re Group ING Groep NV IPCRe Ltd IRB - Brasil Resseguros S.A. Group	Liberty Mutual Insurance Companies Montpelier Reinsurance Ltd Partner Re Platinum Underwriters PMA Capital Corp Renaissance Re Holdings Ltd Royal & Sun Alliance Insurance Group SCOR Group Sompo Japan Group Tawa UK Ltd Toa Reinsurance Company Travelers Companies Inc White Mountains Insurance Group WR Berkley Corp Zurich Financial Services Group

(1) Other principally includes amounts recoverable that are in dispute, or are from companies who are in supervision, rehabilitation or liquidation. Our estimate of provision for uncollectible reinsurance associated with Other considers the credit quality of the reinsurer, and whether we have received collateral or other credit protections such as multi-beneficiary trusts and parental guarantees.

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

Reinsurance Rec-Active Page 14

	ACE Limited
	Reinsurance Recoverable Analysis - 3
	(in millions of U.S. dollars)
	(Unaudited)

Consolidated Reinsurance Recoverable

	June 30, 2007
	Recoverable		Provision		% of Gross
Categories
Top 10 reinsurers	$	7,698	$	84	1.1	%
Other reinsurers balances >$20 million		3,360		150	4.5	%
Other reinsurers balances <$20 million		656		85	13.0	%
Mandatory pools and government agencies		585		3	0.5	%
Structured settlements		522		16	3.1	%
Captives		1,483		5	0.3	%
Other (1)		426		306	71.8	%
Total	$	14,730	$	649	4.4	%

At June 30, 2007, $11.2 billion of ACE Limited recoverables were from rated reinsurers, of which 94.6% 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 (AIG) Berkshire Hathaway Insurance Group Chubb Insurance Group Equitas Everest Re Group HDI Haftpflichtverband Der Deutschen Industrie Vag (Hannover) Lloyd’s Of London Munich Re Group Swiss Re Group XL Capital Group	AGRI General Ins Co AIOI Insurance Group Allianz Allied World Assurance Group Allstate Group Arch Capital Aspen Insurance Holdings Ltd AVIVA AXA CIGNA CNA Insurance Companies Converium Group Dominion Insurance Co Ltd Dow Chemical Co Dukes Place Holdings	Electric Insurance Company Group Endurance Specialty Holdings Ltd Enstar Group Ltd Fairfax Financial Federal Crop Insurance Corp FM Global Group Globale Rueckversicherungs AG Hartford Insurance Group ING Groep NV IPCRe Ltd IRB - Brasil Resseguros S.A. Group Liberty Mutual Insurance Companies Millea Holdings Montpelier Reinsurance Ltd Partner Re	Platinum Underwriters PMA Capital Corp Renaissance Re Holdings Ltd Royal & Sun Alliance Insurance Group SCOR Group Sompo Japan Group Tawa UK Ltd Toa Reinsurance Company Travelers Companies Inc Trenwick Group White Mountains Insurance Group WR Berkley Corp Zurich Financial Services Group

(1) Other principally includes amounts recoverable that are in dispute, or are from companies who are in supervision, rehabilitation or liquidation. Our estimate of provision for uncollectible reinsurance associated with Other considers the credit quality of the reinsurer, and whether we have received collateral or other credit protections such as multi-beneficiary trusts and parental guarantees.

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

Reinsurance Rec-Consolidated Page 15

	ACE Limited
	Reinsurance Recoverable Analysis - 4
	(in millions of U.S. dollars)
	(Unaudited)

Detail on Reinsurance Recoverable on Paid Losses and Loss Expenses

	General Collections (1)			Other (2)			Total
Gross balance at December 31, 2006	$	932		$	384		$	1,316
Provision at 12/31/06		53			202			255
% of gross		5.7	%		52.6	%		19.4	%
Net balance at December 31, 2006	$	879		$	182		$	1,061
Gross balance at March 31, 2007	$	933		$	290		$	1,223
Provision at 3/31/07		57			215			272
% of gross		6.1	%		74.1	%		22.2	%
Net balance at March 31, 2007	$	876		$	75		$	951
Gross balance at June 30, 2007	$	887		$	227		$	1,114
Provision at 6/30/07		52			167			219
% of gross		5.9	%		73.6	%		19.7	%
Net balance at June 30, 2007	$	835		$	60		$	895
Gross balance at September 30, 2007	$	820		$	210		$	1,030
Provision at 9/30/07		49			158			207
% of gross		6.0	%		75.2	%		20.1	%
Net balance at September 30, 2007 (3)	$	771		$	52		$	823

(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 principally 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 multi-beneficiary trusts and parental guarantees.

(3) The current quarter split between general collections and other is estimated based on prior quarter balances. Balances are adjusted to actual in the next quarter.

Reinsurance Recoverable 4 Page 16

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

	September 30 2007			June 30 2007			March 31 2007			December 31 2006
Market Value
Fixed maturities available for sale	$	32,632		$	30,591		$	29,934		$	28,540
Fixed maturities held to maturity		2,966			2,957			3,039			3,015
Short-term investments		2,940			2,919			2,658			2,456
Total	$	38,538		$	36,467		$	35,631		$	34,011
Asset Allocation by Market Value
Treasury	$	1,208		$	1,587		$	1,689		$	1,322
Agency		1,901			2,117			2,223			2,207
Corporate		8,579			7,643			7,473			7,394
Mortgage-backed securities		13,542			12,338			11,925			11,346
Asset-backed securities		1,377			1,611			1,772			2,020
Municipal		1,603			1,367			1,157			809
Non-U.S.		7,388			6,885			6,734			6,457
Short-term investments		2,940			2,919			2,658			2,456
Total	$	38,538		$	36,467		$	35,631		$	34,011
Credit Quality by Market Value
AAA	$	25,239		$	24,121		$	23,783		$	22,471
AA		3,416			3,178			3,095			2,725
A		4,059			3,902			3,582			3,909
BBB		3,171			2,841			2,610			2,498
BB		1,121			948			992			943
B		1,437			1,376			1,475			1,365
Other		95			101			94			100
Total	$	38,538		$	36,467		$	35,631		$	34,011
Cost/Amortized Cost
Fixed maturities available for sale	$	32,619		$	30,847		$	29,723		$	28,389
Fixed maturities held to maturity		2,979			3,013			3,060			3,047
Short-term investments		2,940			2,919			2,658			2,456
Subtotal		38,538			36,779			35,441			33,892
Equity securities		1,540			1,522			1,432			1,372
Other investments		812			749			687			661
Total	$	40,890		$	39,050		$	37,560		$	35,925
Avg. duration of fixed maturities, adjusted for int. rate swaps		3.6 years			3.7 years			3.3 years			3.3 years
Avg. market yield of fixed maturities		5.5	%		5.7	%		5.3	%		5.4	%
Avg. credit quality		AA			AA			AA			AA

Investments Page 17

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

	Three months ended September 30, 2007									Nine months ended September 30, 2007
	Net Realized Gains (Losses) (1)			Net Unrealized Gains (Losses)			Net Impact			Net Realized Gains (Losses) (1)			Net Unrealized Gains (Losses)			Net Impact
Fixed maturities	$	(6	)	$	268		$	262		$	(90	)	$	(137	)	$	(227	)
Equity securities		57			(48	)		9			142			(15	)		127
Equity and fixed income derivatives		(9	)		—			(9	)		(14	)		—			(14	)
Foreign exchange gains (losses)		2			—			2			3			—			3
Other		6			4			10			18			37			55
Sub-total		50			224			274			59			(115	)		(56	)
Other FAS 133 adjustments		(50	)		—			(50	)		(54	)		—			(54	)
Total gains (losses)		—			224			224			5			(115	)		(110	)
Partially-owned insurance companies (2)		(38	)		—			(38	)		(38	)		—			(38	)
Income tax expense (benefit)		(2	)		10			8			(20	)		(10	)		(30	)
Net gains (losses)	$	(36	)	$	214		$	178		$	(13	)	$	(105	)	$	(118	)

(1) The quarter includes impairments of $13M for fixed maturities and $5M for equitites. Year to date includes impairments of $63M for fixed maturities, $7M for equities and $2M for other investments.

(2) Realized gains (losses) on partially-owned insurance companies that meet the requirements for equity accounting. The net income or loss is included in other (income) expense.

	Three months ended September 30, 2006								Nine months ended September 30, 2006
	Net Realized Gains (Losses) (3)			Net Unrealized Gains (Losses)		Net Impact			Net Realized Gains (Losses) (3)			Net Unrealized Gains (Losses)		Net Impact
Fixed maturities	$	(116	)	$	559	$	443		$	(241	)	$	130	$	(111	)
Equity securities		24			55		79			124			29		153
Equity and fixed income derivatives		(25	)		—		(25	)		(5	)		—		(5	)
Foreign exchange gains (losses)		(4	)		—		(4	)		(11	)		—		(11	)
Other		—			9		9			2			68		70
Total inv. portfolio gains (losses)		(121	)		623		502			(131	)		227		96
Sale of run-off reinsurance subsidiaries		9			—		9			9			—		9
Other FAS 133 adjustments		(1	)		—		(1	)		9			—		9
Total gains (losses)		(113	)		623		510			(113	)		227		114
Income tax expense (benefit)		(39	)		111		72			(41	)		44		3
Net gains (losses)	$	(74	)	$	512	$	438		$	(72	)	$	183	$	111

(3) The quarter includes impairments of $106M for fixed maturities, $3M for equities. Year to date includes impairments of $186M for fixed maturities, $9M for equities and $6M for other investments.

Investment Gains (Losses) Page 18

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

	September 30 2007			June 30 2007			March 31 2007			December 31 2006			December 31 2005
Total short-term debt	$	87		$	85		$	581		$	578		$	300
Total long-term debt		2,068			2,063			2,061			1,560			1,811
Total debt		2,155			2,148			2,642			2,138			2,111
Total trust preferred securities		309			309			309			309			309
Perpetual preferred shares		557			557			557			557			557
Ordinary shareholders’ equity		15,478			14,627			14,402			13,721			11,255
Total shareholders’ equity	$	16,035		$	15,184		$	14,959		$	14,278		$	11,812
Total capitalization	$	18,499		$	17,641		$	17,910		$	16,725		$	14,232
Tangible shareholders’ equity (1)	$	13,304		$	12,453		$	12,228		$	11,547		$	9,109
Leverage ratios
Debt/ total capitalization		11.6	%		12.2	%		14.8	%		12.8	%		14.8	%
Debt plus trust preferred secutities/ total capitalization		13.3	%		13.9	%		16.5	%		14.6	%		17.0	%
Debt/ tangible equity		16.2	%		17.2	%		21.6	%		18.5	%		23.2	%
Debt plus trust preferred securities/ tangible equity		18.5	%		19.7	%		24.1	%		21.2	%		26.6	%
Debt plus total preferred stock/ total capitalization		16.3	%		17.1	%		19.6	%		18.0	%		20.9	%

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

Capital Structure Page 19

	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 September 30						Nine months ended September 30
	2007			2006			2007			2006
Numerator
Income excluding net realized gains (losses) and cumulative effect (1)	$	692		$	652		$	2,019		$	1,708
Perpetual preferred dividend		(11	)		(11	)		(33	)		(33	)
Income to ordinary shares, excl. net realized gains (losses) and cumulative effect		681			641			1,986			1,675
Net realized gains (losses), net of income tax		(36	)		(74	)		(13	)		(72	)
Net income available to the holders of ordinary shares excluding cumulative effect		645			567			1,973			1,603
Cumulative effect of a change in accounting principle, net of tax		—			—			—			4
Net income available to the holders of ordinary shares	$	645		$	567		$	1,973		$	1,607
Rollforward of Ordinary Shares
Ordinary Shares - beginning of period		329,009,343			325,371,481			326,455,468			323,322,586
Issued under employee stock purchase plan		101,234			101,359			205,396			202,891
Shares (cancelled) granted		11,614			(19,016	)		1,259,080			989,164
Issued for option exercises		338,176			502,718			1,540,423			1,441,901
Ordinary Shares - end of period		329,460,367			325,956,542			329,460,367			325,956,542
Denominator
Weighted average shares outstanding		325,201,688			321,857,427			324,670,960			321,502,413
Effect of other dilutive securities		5,419,353			4,848,763			5,413,751			5,005,317
Adj. wtd. avg. shares outstanding and assumed conversions		330,621,041			326,706,190			330,084,711			326,507,730
Basic earnings per share
Income excluding net realized gains (losses) and cumulative effect (1)	$	2.09		$	1.99		$	6.12		$	5.21
Net realized gains (losses), net of income tax		(0.11	)		(0.23	)		(0.04	)		(0.23	)
Cumulative effect of a change in accounting principle, net of tax		—			—			—			0.01
Net income	$	1.98		$	1.76		$	6.08		$	4.99
Diluted earnings per share
Income excluding net realized gains (losses) and cumulative effect (1)	$	2.06		$	1.96		$	6.02		$	5.13
Net realized gains (losses), net of income tax		(0.11	)		(0.23	)		(0.04	)		(0.22	)
Cumulative effect of a change in accounting principle, net of tax		—			—			—			0.01
Net income	$	1.95		$	1.73		$	5.98		$	4.92

(1) See page 21 Non-GAAP Financial Measures.

Earnings per share Page 20

	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 22.

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 excluding net realized gains (losses), the tax expense (benefit) on net realized gains (losses), and cumulative effect of a change in accounting principle, net of tax. 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) and net realized gains (losses) included in other (income) expense related to partially owned insurance companies because the amount of these gains (losses) is heavily influenced by, and fluctuates in part according to, the availability of market opportunities. We exclude the benefit of the cumulative effect of a change in accounting principle, net of tax, because this benefit resulted in a one time adjustment to income. 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) and cumulative effect should not be viewed as a substitute for net income determined in accordance with generally accepted accounting principles (GAAP).

	3Q-07			2Q-07			1Q-07			4Q-06			3Q-06			YTD 2007			YTD 2006			Full Year 2006
Net income, as reported	$	656		$	649		$	701		$	665		$	578		$	2,006		$	1,640		$	2,305
Net realized gains (losses)		—			(11	)		16			15			(113	)		5			(113	)		(98	)
Net realized gains (losses) in other (income) expense (1)		(38	)		—			—			—			—			(38	)		—			—
Income tax expense (benefit) on net realized gains (losses)		(2	)		4			(22	)		(7	)		(39	)		(20	)		(41	)		(48	)
Cumulative effect of a change in accounting principle, net of tax		—			—			—			—			—			—			4			4
Income excluding net realized gains (losses) and cumulative effect	$	692		$	664		$	663		$	643		$	652		$	2,019		$	1,708		$	2,351

(1) Realized gains (losses) on partially-owned insurance companies that meet the requirements for equity accounting. The net income or loss is included in other (income) expense.

Reconciliation Non-GAAP Page 21

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

Reconciliation of Book Value per Ordinary Share

	September 30 2007			June 30 2007			March 31 2007			December 31 2006
Shareholders’ equity	$	16,035		$	15,184		$	14,959		$	14,278
Proceeds from issuance of perpetual preferred shares		(557	)		(557	)		(557	)		(557	)
Numerator for book value per share calculation		15,478			14,627			14,402			13,721
Less: goodwill		2,731			2,731			2,731			2,731
Numerator for tangible book value per share	$	12,747		$	11,896		$	11,671		$	10,990
Denominator		329,460,367			329,009,343			328,309,225			326,455,468
Book value per ordinary share	$	46.98		$	44.46		$	43.87		$	42.03
Tangible book value per ordinary share	$	38.69		$	36.16		$	35.55		$	33.66

Reconciliation Book Value Page 22

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

Consolidated Statement of Comprehensive Income

	3Q-07			2Q-07			1Q-07			4Q-06			3Q-06			YTD 2007			YTD 2006			Full Year 2006
Net income	$	656		$	649		$	701		$	665		$	578		$	2,006		$	1,640		$	2,305
Net unrealized appreciation (depreciation) on investments
Unrealized appreciation (depreciation) on investments		218			(427	)		73			132			541			(136	)		157			289
Reclassification adjustment for net realized gains (losses) included in net income		6			12			3			(6	)		82			21			70			64
Change in cumulative translation adjustments		58			19			16			46			15			93			89			135
Change in minimum pension liability		(1	)		(2	)		—			29			(5	)		(3	)		(9	)		20
Income tax (expense) benefit related to other comprehensive income items		(28	)		23			(18	)		(42	)		(117	)		(23	)		(71	)		(113	)
Other comprehensive income (loss)		253			(375	)		74			159			516			(48	)		236			395
Comprehensive income	$	909		$	274		$	775		$	824		$	1,094		$	1,958		$	1,876		$	2,700

Comprehensive Income Page 23

	ACE Limited
	Glossary

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

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

Combined ratio: The sum of the loss and loss expense ratio, acquisition cost ratio and the administrative expense ratio excluding life business. Calculated on a GAAP basis.

Cumulative effect: The benefit resulting from the accrual of a forfeiture rate on the restricted stock under Financial Accounting Standard 123R “Share-Based Payment”.

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

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.

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

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.

Glossary Page 24