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) – April 29, 2008

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 April 29 2008, ACE Limited issued a press release reporting its first quarter 2008 results and the availability of its first 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 April 29, 2008, reporting first quarter results
99.2	First Quarter 2008 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: April 29, 2008

EXHIBIT INDEX

Number	Description	Method of Filing
99.1	Press release, dated April 29, 2008, reporting first quarter results	Furnished herewith
99.2	First Quarter 2008 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:	Patrick F. McGovern
	(212) 827-4426
	patrick.mcgovern@ace-ina.com

ACE LIMITED REPORTS FIRST QUARTER 2008 OPERATING INCOME UP 9.5%

TO RECORD $725 MILLION; NET INCOME OF $377 MILLION

HAMILTON, Bermuda, April 29, 2008 — ACE Limited (NYSE: ACE) today reported net income for the first quarter ended March 31, 2008, of $1.10 per common share after payment of preferred dividends, compared with $2.10 per share for the same quarter last year. Income excluding net realized gains (losses) for the first quarter was $2.16 per share, compared with $1.98 per share for the same quarter of last year.⁽¹⁾ The first quarter was marked by unprecedented financial market volatility in both the credit and equity markets, which impacted net income and book value. The net realized and unrealized loss after tax was $650 million for the quarter. This loss is the result of market pricing changes only. Actual credit-related impairments included in this number were insignificant, at approximately $20 million. Book value increased $58 million for the quarter, and the annualized return on average equity was 17.7%.⁽²⁾

First Quarter Summary

(in millions, except per share amounts)

(Unaudited)

								(Per Share – Diluted)
	2008			2007		Change		2008			2007		Change
Net income	$	377		$	701	(46	)%	$	1.10		$	2.10	(48	)%
Net realized gains (losses), net of tax		(348	)		38	—			(1.06	)		0.12	—
Income excluding net realized gains (losses), net of tax(1)	$	725		$	663	9.5	%	$	2.16		$	1.98	9	%

Evan Greenberg, Chairman and Chief Executive Officer of ACE Limited, commented: “It was a busy and very good quarter for ACE. We closed two acquisitions – Combined Insurance and the Atlantic Companies’ personal lines business – and we announced our intention to re-domesticate our holding company to Zurich, Switzerland. These moves speak to the medium- and long-term strategic positioning of our Company. We had a strong quarter in terms of operating performance, with net operating income up 9.5%. Net income, which was down, and book value growth, which was essentially flat, were negatively impacted by the unprecedented volatility experienced in the debt and equity markets during the quarter. The business climate has grown more difficult globally, including the broad economy and financial markets. Ironically, the P&C market continues to grow more competitive. Our balance sheet and income statement are strong, and in the face of these realities, we are well positioned to seek out and capitalize upon opportunities on both the asset and liability sides of our balance sheet.”

Other operating highlights were as follows:

• Net premiums written declined 4% over the prior year quarter.

• Net premiums earned declined 5% over the prior year quarter.

• The property and casualty (P&C) combined ratio for the quarter was 84.6% compared with 87.1% for the prior year quarter.

• P&C underwriting income increased 14% over the prior year quarter to $439 million.

• Underwriting income in the first quarter benefited from positive prior period development of $137 million compared to $18 million in the first quarter of last year. This was 90% short-tail-related, predominantly crop insurance and property.

• The P&C expense ratio reported in the quarter increased by 4.0 percentage points from last year’s first quarter to 29%. Of this increase, 1.6 percentage points related to a profit-sharing commission paid in the U.S. crop insurance book due to a profitable 2007 crop year, and 1.4 percentage points related to a large risk management contract written in last year’s first quarter.

• Operating cash flow was $1 billion for the quarter.

• Invested assets increased by $1.4 billion or 3% during the first quarter to $43.7 billion.

• Reinsurance recoverables decreased $393 million for the quarter to $13,969 million.

• Net loss reserves increased $463 million during the quarter to $23.2 billion.

• Net investment income increased 8% over the prior year quarter to $489 million.

• Return on average equity for the first quarter was 17.7%; excluding FAS 115, it was 18.2%.⁽²⁾

• Book value increased $58 million from December 31, 2007 while book value per share⁽³⁾ declined from $48.89 at December 31, 2007 to $48.65.

• The net realized and unrealized loss after tax was $650 million. This includes approximately $183 million from derivatives, principally related to the guaranteed minimum income benefit (GMIB) liabilities of our life reinsurance business, and $480 million from our investment portfolio, which comprises $150 million from high grade fixed income, $110 million from high yield and $220 million from equities and other.

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

• Insurance-North American: Net premiums written decreased 10% over the prior year quarter. The combined ratio was 86.0% compared with 88.4% for the same quarter last year. Last year’s quarter included $168 million of premiums written related to a large risk management contract, and in this year’s quarter we recorded $109 million in premiums written related to the Atlantic Companies’ personal lines business, now known as ACE Private Risk Services. Adjusting for these transactions, net written premiums would have decreased by approximately 7%.

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• Insurance-Overseas General: Net premiums written increased 13% over the prior year quarter, 6% on a currency-adjusted basis. The combined ratio was 82.7% compared with 85.4% for the same quarter last year.

• Global Reinsurance: Net premiums written decreased 28% over the prior year quarter. The combined ratio was 70.8% compared with 78% for the same quarter last year.

• Life Insurance and Reinsurance: Net premiums written increased 19% over the prior year quarter. Income excluding net realized gains (losses) decreased 23% to $33 million over the prior year quarter, primarily as a result of a reduction in our income related to our life reinsurance business. Net realized losses of $186 million are primarily attributable to the mark-to-market impact on the GMIB liabilities that are accounted for as derivatives. The losses resulted from an increase in the fair value liabilities relating to our reinsurance of guarantees for variable annuities. This is primarily the result of the adverse financial market changes in the first quarter, including negative equity returns, a reduction in long-term interest rates, and an increase in implied volatility for both equities and interest rates. This is purely a mark-to-market adjustment, required because the transactions are deemed to be derivatives for accounting purposes, and does not indicate negative cash flows on our reinsurance treaties. These results are in line with our expectations given these market conditions.

The following earnings guidance has been updated for the full year 2008 and reflects the acquisition of Combined Insurance Company of America and certain of its subsidiaries, which was completed on April 1, 2008. We are now estimating that Combined Insurance will be 3.4% or $0.25 per share accretive for the remainder of 2008. This compares to our previous estimate of 2.6% or $0.19 per share accretive for the same time frame.

• Operating Income per Share is expected to range between $7.40 and $7.90. The previous range was between $7.00 and $7.50.

• Property & Casualty Net Premiums Earned are expected to increase 1% to 3%. The previous range was a decline between 3% and 5%. The change is due primarily to the international portion of the Combined Insurance transaction.

• Consolidated Net Premiums Earned are expected to increase 8% to 10%. This is due primarily to the impact of the total Combined Insurance transaction.

• Catastrophe Losses included in our estimated earnings are $340 million pre-tax ($270 million after-tax) for the remainder of the year.

Please refer to the ACE Limited Financial Supplement dated March 31, 2008, 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/irol/10/100907/fin_supp_march_31_2008.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 first quarter earnings conference call and webcast on Wednesday, April 30, 2008, 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 888-632-5021 (within the United States) or 913-312-0656 (international); passcode 5744621. 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 5744621.

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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), 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.

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 Calculated using income 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.

³ 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.

Cautionary Statement Regarding Forward-Looking Statements:

Forward-looking statements made in this press release, such as those related to economic conditions, company performance, reserves and valuations, and integration of ACE’s recent acquisitions, 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, integration activities and unexpected financial or operational performance with respect to acquired companies, 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)

Page 4/7

ACE Limited

Summary Consolidated Balance Sheets

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

(Unaudited)

	March 31 2008		December 31 2007
	(Unaudited)
Assets
Total investments	$	43,230	$	41,779
Cash		511		510
Insurance and reinsurance balances receivable		3,748		3,540
Reinsurance recoverable		13,969		14,362
Other assets		12,461		11,899
Total assets	$	73,919	$	72,090
Liabilities
Unpaid losses and loss expenses	$	37,182	$	37,112
Unearned premium		6,653		6,227
Other liabilities		13,349		12,074
Total liabilities	$	57,184	$	55,413
Shareholders’ equity
Total shareholders’ equity	$	16,735	$	16,677
Total liabilities and shareholders’ equity	$	73,919	$	72,090
Book value per ordinary share (3)	$	48.65	$	48.89

Page 5/7

ACE Limited

Summary Consolidated Financial Data

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

(Unaudited)

	Three Months Ended March 31
	2008			2007
Gross premiums written	$	4,409		$	4,496
Net premiums written		3,154			3,270
Net premiums earned		2,940			3,082
Losses and loss expenses		1,579			1,860
Life and annuity benefits		63			36
Policy acquisition costs		468			417
Administrative expenses		375			356
Underwriting income (1)		455			413
Net investment income		489			451
Net realized gains (losses)		(353	)		16
Interest expense		46			46
Other expense		15			4
Income tax expense		153			129
Net income		377			701
Preferred share dividend		(11	)		(11	)
Net income available to holders of ordinary shares	$	366		$	690
Diluted earnings per share:
Income excluding net realized gains (losses) (1)	$	2.16		$	1.98
Net income	$	1.10		$	2.10
Weighted average diluted shares outstanding		331.0			328.9
Loss and loss expense ratio		55.6	%		62.1	%
Policy acquisition cost ratio		16.2	%		13.5	%
Administrative expense ratio		12.8	%		11.5	%
Combined ratio		84.6	%		87.1	%

Page 6/7

ACE Limited

Consolidated Supplemental Information

(in millions of U.S. dollars)

(Unaudited)

	Three Months Ended March 31
	2008			2007
Gross Premiums Written
Insurance – North American	$	2,181		$	2,269
Insurance – Overseas General		1,778			1,659
Global Reinsurance		345			478
Life Insurance and Reinsurance		105			90
Total	$	4,409		$	4,496
Net Premiums Written
Insurance – North American	$	1,360		$	1,514
Insurance – Overseas General		1,345			1,192
Global Reinsurance		344			476
Life Insurance and Reinsurance		105			88
Total	$	3,154		$	3,270
Net Premiums Earned
Insurance – North American	$	1,354		$	1,539
Insurance – Overseas General		1,223			1,112
Global Reinsurance		263			343
Life Insurance and Reinsurance		100			88
Total	$	2,940		$	3,082
Income Excluding Net Realized Gains (Losses) (1)
Insurance – North American	$	327		$	298
Insurance – Overseas General		256			215
Global Reinsurance		144			132
Life Insurance and Reinsurance		33			43
Corporate		(35	)		(25	)
Total	$	725		$	663

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EX-99.2

Exhibit 99.2

	Financial Supplement March 31, 2008
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, and changes in the financial, securities, and capital markets and the investment community. 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
III.	Segment Results
	- Insurance - North American	6
	- Insurance - Overseas General	7
	- Global Reinsurance	8
	- Life Insurance and Reinsurance	9
IV.	Balance Sheet Details
	- Loss Reserve Rollforward	10
	- Reinsurance Recoverable Analysis	11-14
	- Investment Portfolio	15-17
	- 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 March 31
	2008			2007			% Change 1Q-08 vs. 1Q-07
Gross premiums written	$	4,409		$	4,496		-2	%
Net premiums written	$	3,154		$	3,270		-4	%
Net premiums earned	$	2,940		$	3,082		-5	%
Net investment income	$	489		$	451		8	%
Net income	$	377		$	701		-46	%
Income excluding net realized gains (losses) (1)	$	725		$	663		9	%
Comprehensive income	$	88		$	775		-89	%
Operating cash flow	$	1,015		$	1,236		-18	%
Combined ratio
Loss and loss expense ratio		55.6	%		62.1	%
Underwriting and administrative expense ratio		29.0	%		25.0	%
Combined ratio		84.6	%		87.1	%
Annualized ROE*		17.7	%		18.5	%
Annualized ROE, excluding FAS 115*		18.2	%		19.4	%
Effective tax rate on income excluding net realized gains (losses)		20	%		19	%
Diluted earnings per share
Income excluding net realized gains (losses) (1)	$	2.16		$	1.98		9	%
Net income	$	1.10		$	2.10		-48	%
Book value per ordinary share	$	48.65		$	43.87		11	%
Tangible book value per ordinary share	$	40.35		$	35.55		13	%
Weighted average basic ordinary shares outstanding		327.0			324.1
Weighted average diluted ordinary shares outstanding		331.0			328.9
Debt/ total capitalization		16.9	%		14.8	%

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

* Calculated using income excluding net realized gains (losses)

Financial Highlights Page 1

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

ACE Limited Consolidated

	1Q-08			4Q-07			3Q-07			2Q-07			1Q-07			Full Year 2007
Property and Casualty
Gross premiums written	$	4,304		$	4,035		$	4,363		$	4,545		$	4,406		$	17,349
Net premiums written		3,049			2,716			2,705			2,995			3,182			11,598
Net premiums earned		2,840			2,959			3,055			2,921			2,994			11,929
Losses and loss expenses		1,579			1,788			1,910			1,793			1,860			7,351
Policy acquisition costs		460			448			450			422			406			1,726
Administrative expenses		362			372			345			344			344			1,405
P&C underwriting income	$	439		$	351		$	350		$	362		$	384		$	1,447
Life underwriting income excluding investment income		16			16			30			30			29			105
Net investment income		489			504			492			471			451			1,918
Net realized gains (losses)		(353	)		(66	)		—			(11	)		16			(61	)
Interest expense		46			43			44			42			46			175
Other income (expense) (1)		(15	)		(49	)		(32	)		4			(4	)		(81	)
Income tax expense (benefit)		153			141			140			165			129			575
Net income	$	377		$	572		$	656		$	649		$	701		$	2,578
Net realized gains (losses)		(353	)		(66	)		—			(11	)		16			(61	)
Net realized gains (losses) in other income (expense) (1)		(28	)		(57	)		(38	)		—			—			(95	)
Tax expense (benefit) on net realized gains (losses)		(33	)		(2	)		(2	)		4			(22	)		(22	)
Income excluding net realized gains (losses) (2)	$	725		$	693		$	692		$	664		$	663		$	2,712
% Change versus prior year period(3)
Property and Casualty net premiums written		-4	%		-3	%		-1	%		0	%		-2	%		-1	%
Property and Casualty net premiums earned		-5	%		0	%		1	%		3	%		9	%		3	%
Other ratios
Net premiums written/gross premiums written		71	%		67	%		62	%		66	%		72	%		67	%
Effective tax rate on income excluding net realized gains (losses)		20	%		17	%		17	%		20	%		19	%		18	%
Combined ratio (3)
Loss and loss expense ratio		55.6	%		60.4	%		62.5	%		61.4	%		62.1	%		61.6	%
Policy acquisition cost ratio		16.2	%		15.1	%		14.7	%		14.5	%		13.5	%		14.5	%
Administrative expense ratio		12.8	%		12.6	%		11.3	%		11.7	%		11.5	%		11.8	%
Combined ratio		84.6	%		88.1	%		88.5	%		87.6	%		87.1	%		87.9	%
Expense ratio P&C		29.0	%		27.7	%		26.0	%		26.2	%		25.0	%		26.3	%
Expense ratio excluding A&H		25.8	%		24.6	%		22.8	%		23.6	%		21.9	%		23.2	%
Large losses and other items (3)
Catastrophe losses (before tax)	$	31		$	23		$	21		$	81		$	34		$	159
Prior period development - unfavorable (favorable) (4)	$	(137	)	$	(89	)	$	(70	)	$	(40	)	$	(18	)	$	(217	)

(1) Net realized investment and derivative losses related to our unconsolidated insurance affiliates.

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

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

(4) For quarter 1 2008, prior period favorable development of $181 million less $44 million of profit share commission on Crop business settlement.

Consolidated Results Page 2

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

	March 31 2008		December 31 2007
	(Unaudited)		(Audited)
Assets
Fixed maturities available for sale, at fair value	$	32,619	$	33,184
Fixed maturities held to maturity, at amortized cost		2,913		2,987
Equity securities, at fair value		1,660		1,837
Short-term investments, at fair value		4,795		2,631
Other investments		1,243		1,140
Total investments		43,230		41,779
Cash		511		510
Securities lending collateral		2,361		2,109
Insurance and reinsurance balances receivable		3,748		3,540
Reinsurance recoverable		13,969		14,362
Deferred policy acquisition costs		1,220		1,121
Prepaid reinsurance premiums		1,742		1,600
Goodwill		2,763		2,731
Deferred tax assets		1,054		1,087
Investments in partially owned insurance companies		776		773
Other assets		2,545		2,478
Total assets	$	73,919	$	72,090
Liabilities
Unpaid losses and loss expenses	$	37,182	$	37,112
Unearned premiums		6,653		6,227
Future policy benefits for life and annuity contracts		632		545
Insurance and reinsurance balances payable		2,756		2,843
Deposit liabilities		362		351
Securities lending payable		2,361		2,109
Payable for securities purchased		1,391		1,798
Accounts payable, accrued expenses and other liabilities		1,885		1,825
Income taxes payable		198		111
Short-term debt		1,341		372
Long-term debt		2,114		1,811
Trust preferred securities		309		309
Total liabilities		57,184		55,413
Shareholders’ equity
Total shareholders’ equity, excl. AOCI		16,261		15,908
Accumulated other comprehensive income (AOCI)		474		769
Total shareholders’ equity		16,735		16,677
Total liabilities and shareholders’ equity	$	73,919	$	72,090
Book value per ordinary share (1)	$	48.65	$	48.89
Tangible book value per ordinary share (1)	$	40.35	$	40.61

(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

	1Q-08		% of Total Consolidated		1Q-07		% of Total Consolidated		% Change 1Q-08 vs. 1Q-07
Net premiums written
Property and all other	$	1,073	34	%	$	1,003	30	%	7	%
Casualty		1,476	47	%		1,759	54	%	-16	%
Personal accident (A&H)		500	16	%		420	13	%	19	%
Total P&C		3,049	97	%		3,182	97	%	-4	%
Life		105	3	%		88	3	%	19	%
Total Consolidated	$	3,154	100	%	$	3,270	100	%	-4	%
Net premiums earned
Property and all other	$	874	30	%	$	853	27	%	2	%
Casualty		1,498	51	%		1,747	57	%	-14	%
Personal accident (A&H)		468	16	%		394	13	%	19	%
Total P&C		2,840	97	%		2,994	97	%	-5	%
Life		100	3	%		88	3	%	14	%
Total Consolidated	$	2,940	100	%	$	3,082	100	%	-5	%

Line of Business Page 4

ACE Limited Consolidating Statement of Operations Three months ended March 31, 2008 and 2007 (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
March 31, 2008
Gross premiums written	$	2,181		$	1,778		$	345		$	—		$	4,304		$	105		$	4,409
Net premiums written		1,360			1,345			344			—			3,049			105			3,154
Net premiums earned		1,354			1,223			263			—			2,840			100			2,940
Losses and loss expenses		869			593			117			—			1,579			—			1,579
Life and annuity benefits		—			—			—			—			—			63			63
Policy acquisition costs		161			245			54			—			460			8			468
Administrative expenses		135			173			15			39			362			13			375
Underwriting income (loss)		189			212			77			(39	)		439			16			455
Net investment income		269			117			73			15			474			15			489
Net realized gains (losses)		(61	)		(83	)		(45	)		22			(167	)		(186	)		(353	)
Interest expense		—			—			—			46			46			—			46
Other income (expense)		—			3			—			(18	)		(15	)		—			(15	)
Income tax expense (benefit)		123			47			4			(19	)		155			(2	)		153
Net income (loss)		274			202			101			(47	)		530			(153	)		377
Net realized gains (losses)		(61	)		(83	)		(45	)		22			(167	)		(186	)		(353	)
Net realized gains (losses) in other income (expense)		—			7			—			(35	)		(28	)		—			(28	)
Tax expense (benefit) on net realized gains (losses)		(8	)		(22	)		(2	)		(1	)		(33	)		—			(33	)
Income (loss) excluding net realized gains (losses) (1)	$	327		$	256		$	144		$	(35	)	$	692		$	33		$	725
March 31, 2007
Gross premiums written	$	2,269		$	1,659		$	478		$	—		$	4,406		$	90		$	4,496
Net premiums written		1,514			1,192			476			—			3,182			88			3,270
Net premiums earned		1,539			1,112			343			—			2,994			88			3,082
Losses and loss expenses		1,111			564			185			—			1,860			—			1,860
Life and annuity benefits		—			—			—			—			—			36			36
Policy acquisition costs		116			224			66			—			406			11			417
Administrative expenses		133			162			17			32			344			12			356
Underwriting income (loss)		179			162			75			(32	)		384			29			413
Net investment income		241			104			66			28			439			12			451
Net realized gains (losses)		37			(26	)		6			3			20			(4	)		16
Interest expense		—			—			—			46			46			—			46
Other income (expense)		(9	)		(3	)		(1	)		9			(4	)		—			(4	)
Income tax expense (benefit)		128			40			7			(44	)		131			(2	)		129
Net income		320			197			139			6			662			39			701
Net realized gains (losses)		37			(26	)		6			3			20			(4	)		16
Tax expense (benefit) on net realized gains (losses)		15			(8	)		(1	)		(28	)		(22	)		—			(22	)
Income (loss) excluding net realized gains (losses) (1)	$	298		$	215		$	132		$	(25	)	$	620		$	43		$	663

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

Segment 2008 Qtr Page 5

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

Insurance - North American

	1Q-08			4Q-07			3Q-07			2Q-07			1Q-07			Full Year 2007
Gross premiums written	$	2,181		$	2,274		$	2,708		$	2,589		$	2,269		$	9,840
Net premiums written		1,360			1,373			1,449			1,497			1,514			5,833
Net premiums earned		1,354			1,418			1,595			1,455			1,539			6,007
Losses and loss expenses		869			1,004			1,138			1,016			1,111			4,269
Policy acquisition costs		161			121			150			128			116			515
Administrative expenses		135			138			129			130			133			530
Underwriting income		189			155			178			181			179			693
Net investment income		269			276			260			257			241			1,034
Net realized gains (losses)		(61	)		44			29			15			37			125
Other income (expense)		—			—			(1	)		(1	)		(9	)		(11	)
Income tax expense (benefit)		123			100			125			115			128			468
Net income		274			375			341			337			320			1,373
Net realized gains (losses)		(61	)		44			29			15			37			125
Tax expense (benefit) on net realized gains (losses)		(8	)		(2	)		—			8			15			21
Income excluding net realized gains (losses) (1)	$	327		$	329		$	312		$	330		$	298		$	1,269
Combined ratio
Loss and loss expense ratio		64.1	%		70.8	%		71.3	%		69.8	%		72.2	%		71.1	%
Policy acquisition cost ratio		11.9	%		8.6	%		9.4	%		8.8	%		7.5	%		8.6	%
Administrative expense ratio		10.0	%		9.7	%		8.1	%		8.9	%		8.7	%		8.8	%
Combined ratio		86.0	%		89.1	%		88.8	%		87.5	%		88.4	%		88.5	%
Large losses and other items (before tax)
Catastrophe losses (before tax)	$	15		$	—		$	—		$	16		$	—		$	16
Prior period development - unfavorable (favorable) (2)	$	(79	)	$	1		$	4		$	(6	)	$	10		$	9
% Change versus prior year period
Net premiums written		-10	%		-7	%		-1	%		0	%		1	%		-2	%
Net premiums earned		-12	%		-4	%		3	%		6	%		15	%		5	%
Other ratios
Net premiums written/gross premiums written		62	%		60	%		54	%		58	%		67	%		59	%

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

(2) For quarter 1 2008 prior period favorable development of $123 million less $44 million of profit share commission on Crop business settlement.

Insurance - North American Page 6

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

Insurance - Overseas General

	1Q-08			4Q-07			3Q-07			2Q-07			1Q-07			Full Year 2007
Gross premiums written	$	1,778		$	1,584		$	1,427		$	1,621		$	1,659		$	6,291
Net premiums written		1,345			1,169			1,041			1,166			1,192			4,568
Net premiums earned		1,223			1,229			1,141			1,141			1,112			4,623
Losses and loss expenses		593			631			611			614			564			2,420
Policy acquisition costs		245			269			240			230			224			963
Administrative expenses		173			175			170			162			162			669
Underwriting income		212			154			120			135			162			571
Net investment income		117			119			116			111			104			450
Net realized gains (losses)		(83	)		(11	)		(5	)		(27	)		(26	)		(69	)
Other income (expense)		3			12			12			(1	)		(3	)		20
Income tax expense (benefit)		47			59			26			58			40			183
Net income		202			215			217			160			197			789
Net realized gains (losses)		(83	)		(11	)		(5	)		(27	)		(26	)		(69	)
Net realized gains (losses) in other income (expense)		7			15			11			—			—			26
Tax expense (benefit) on net realized gains (losses)		(22	)		(1	)		(1	)		(4	)		(8	)		(14	)
Income excluding net realized gains (losses) (1)	$	256		$	210		$	210		$	183		$	215		$	818
Combined ratio
Loss and loss expense ratio		48.5	%		51.4	%		53.6	%		53.9	%		50.7	%		52.4	%
Policy acquisition cost ratio		20.0	%		21.8	%		21.1	%		20.1	%		20.2	%		20.8	%
Administrative expense ratio		14.2	%		14.3	%		14.8	%		14.2	%		14.5	%		14.5	%
Combined ratio		82.7	%		87.5	%		89.5	%		88.2	%		85.4	%		87.7	%
Large losses and other items
Catastrophe losses (before tax)	$	15		$	13		$	8		$	58		$	15			94
Prior period development - unfavorable (favorable)	$	(44	)	$	(76	)	$	(64	)	$	(31	)	$	(21	)		(192	)
% Change versus prior year period
Net premiums written		13	%		10	%		6	%		8	%		4	%		7	%
Net premiums earned		10	%		12	%		4	%		5	%		7	%		7	%
Other ratios
Net premiums written/gross premiums written		76	%		74	%		73	%		72	%		72	%		73	%

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

Insurance - Overseas General Page 7

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

Global Reinsurance

	1Q-08			4Q-07			3Q-07			2Q-07			1Q-07			Full Year 2007
Gross premiums written	$	345		$	177		$	228		$	335		$	478		$	1,218
Net premiums written		344			174			215			332			476			1,197
Net premiums earned		263			312			319			325			343			1,299
Losses and loss expenses		117			155			161			163			185			664
Policy acquisition costs		54			58			60			64			66			248
Administrative expenses		15			17			14			16			17			64
Underwriting income		77			82			84			82			75			323
Net investment income		73			73			69			66			66			274
Net realized gains (losses)		(45	)		(3	)		25			(7	)		6			21
Other income (expense)		—			(1	)		—			(2	)		(1	)		(4	)
Income tax expense (benefit)		4			7			11			7			7			32
Net income		101			144			167			132			139			582
Net realized gains (losses)		(45	)		(3	)		25			(7	)		6			21
Tax expense (benefit) on net realized gains (losses)		(2	)		(1	)		—			—			(1	)		(2	)
Income excluding net realized gains (losses) (1)	$	144		$	146		$	142		$	139		$	132		$	559
Combined ratio
Loss and loss expense ratio		44.5	%		49.8	%		50.6	%		50.1	%		53.8	%		51.1	%
Policy acquisition cost ratio		20.6	%		18.3	%		18.8	%		19.9	%		19.2	%		19.1	%
Administrative expense ratio		5.7	%		5.5	%		4.2	%		5.0	%		5.0	%		4.9	%
Combined ratio		70.8	%		73.6	%		73.6	%		75.0	%		78.0	%		75.1	%
Large losses and other items
Catastrophe losses (before tax)	$	1		$	10		$	13		$	7		$	19		$	49
Prior period development - unfavorable (favorable)	$	(14	)	$	(14	)	$	(10	)	$	(3	)	$	(7	)	$	(34	)
% Change versus prior year period
Net premiums written		-28	%		-31	%		-24	%		-20	%		-21	%		-23	%
Net premiums earned		-23	%		-18	%		-14	%		-16	%		-8	%		-14	%
Other ratios
Net premiums written/gross premiums written		100	%		98	%		94	%		99	%		100	%		98	%

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

Global Reinsurance Page 8

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

Life Insurance and Reinsurance

	1Q-08			4Q-07			3Q-07			2Q-07			1Q-07			Full Year 2007
Gross premiums written (1)	$	105		$	109		$	100		$	92		$	90		$	391
Net premiums written		105			111			95			87			88			381
Net premiums earned		100			98			95			87			88			368
Life and annuity benefits		63			60			39			33			36			168
Policy acquisition costs		8			9			13			12			11			45
Administrative expenses		13			13			13			12			12			50
Net investment income		15			15			14			14			12			55
Life underwriting income (2)		31			31			44			44			41			160
Net realized gains (losses)		(186	)		(108	)		(51	)		(1	)		(4	)		(164	)
Other income (expense)		—			(1	)		—			—			—			(1	)
Income tax expense (benefit)		(2	)		(4	)		(3	)		1			(2	)		(8	)
Net income (loss)		(153	)		(74	)		(4	)		42			39			3
Net realized gains (losses)		(186	)		(108	)		(51	)		(1	)		(4	)		(164	)
Net realized gains (losses) in other income (expense)		—			1			—			—			—			1
Income excluding net realized gains (losses) (3)	$	33		$	33		$	47		$	43		$	43		$	166
% Change versus prior year period
Net premiums written		19	%		42	%		38	%		32	%		44	%		39	%
Net premiums earned		14	%		26	%		38	%		32	%		44	%		34	%

(1) Consistent with GAAP, premiums collected on universal life and investment contracts are considered deposits and excluded from premium revenue. For the quarters ended March 31, 2008, December 31, 2007, September 30, 2007, and June 30, 2007, premiums or deposits collected on investment and universal life contracts that are excluded from premium revenue above aggregated $41.2 million, $27.2 million, $17.4 million and $10.6 million, respectively. Previous to Q2-07, premiums collected on such 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 9

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, 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
Losses and loss expenses incurred		2,838			1,050			1,788			2,815			1,057			1,758			23			(7	)		30
Losses and loss expenses paid		(2,613	)		(933	)		(1,680	)		(2,400	)		(806	)		(1,594	)		(213	)		(127	)		(86	)
Other (incl. foreign exch. revaluation)		19			17			2			19			17			2			—			—			—
Balance at December 31, 2007		37,112			13,520			23,592			31,169			9,472			21,697			5,943			4,048			1,895
Losses and loss expenses incurred		1,659			80			1,579			1,670			87			1,583			(11	)		(7	)		(4	)
Losses and loss expenses paid		(1,748	)		(601	)		(1,147	)		(1,554	)		(406	)		(1,148	)		(194	)		(195	)		1
Other (incl. foreign exch. revaluation)		159			71			88			159			71			88			—			—			—
Balance at March 31, 2008	$	37,182		$	13,070		$	24,112		$	31,444		$	9,224		$	22,220		$	5,738		$	3,846		$	1,892

(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.

Loss Reserve Rollforward Page 10

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

Net Reinsurance Recoverable by Division
	March 31 2008			December 31 2007
Reinsurance recoverable on paid losses and loss expenses
Active operations	$	686		$	697
Brandywine		342			305
Westchester Run-off		34			36
Other Run-off		9			12
Total	$	1,071		$	1,050
Reinsurance recoverable on unpaid losses and loss expenses
Active operations	$	9,778		$	10,024
Brandywine		3,004			3,161
Westchester Run-off		627			653
Other Run-off		169			160
Total	$	13,578		$	13,998
Gross reinsurance recoverable
Active operations	$	10,464		$	10,721
Brandywine		3,346			3,466
Westchester Run-off		661			689
Other Run-off		178			172
Total	$	14,649		$	15,048
Provision for uncollectible reinsurance
Active operations	$	(444	)	$	(435	)
Brandywine		(189	)		(197	)
Westchester Run-off		(31	)		(31	)
Other Run-off		(16	)		(23	)
Total	$	(680	)	$	(686	)
Net reinsurance recoverable
Active operations	$	10,020		$	10,286
Brandywine		3,157			3,269
Westchester Run-off		630			658
Other Run-off		162			149
Total	$	13,969		$	14,362

Reinsurance Recoverable Page 11

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

Reinsurance Recoverable for Active Operations
	December 31, 2007
	Recoverable		Provision		% of Gross
Categories
Top 10 reinsurers	$	5,190	$	70	1.3	%
Other reinsurers balances >$20 million		2,306		85	3.7	%
Other reinsurers balances <$20 million		639		78	12.2	%
Mandatory pools and government agencies		557		3	0.5	%
Structured settlements		232		7	3.0	%
Captives		1,408		2	0.1	%
Other(1)		389		190	48.8	%
Total	$	10,721	$	435	4.1	%

At December 31, 2007, $7.6 billion of ACE Limited active operations recoverables were from rated reinsurers, of which 94.5% were rated the equivalent of A- or better by internationally recognized rating agencies. The Company held collateral of $3.2 billion, of which $2.1 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	AIOI Insurance Group	IRB - Brasil Resseguros S.A. Group
American International Group	Allianz	Liberty Mutual Insurance Companies
Berkshire Hathaway Insurance Group	Allied World Assurance Group	Partner Re
Chubb Insurance Group	Arch Capital	Platinum Underwriters
Federal Crop Insurance Corp	Aspen Insurance Holdings Ltd	PMA Capital Corp
HDI Haftpflichtverband Der Deutschen Industrie Vag (Hannover)	AXA	Power Corp Of Canada
Lloyd’s Of London	Brit Insurance Holding Plc	Renaissance Re Holdings Ltd
Munich Re Group	CIGNA	Royal & Sun Alliance Insurance Group
Swiss Re Group	Dow Chemical Co	SCOR Group
XL Capital Group	Electric Insurance Company Group	Sompo Japan Group
	Equitas	Toa Reinsurance Company
	Everest Re Group	Travelers Companies Inc
	Fairfax Financial	White Mountains Insurance Group
	Hartford Insurance Group	WR Berkley Corp
	Independence Blue Cross 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 12

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

Consolidated Reinsurance Recoverable
	December 31, 2007
	Recoverable		Provision		% of Gross
Categories
Top 10 reinsurers	$	7,627	$	105	1.4	%
Other reinsurers balances >$20 million		3,375		204	6.0	%
Other reinsurers balances <$20 million		728		93	12.8	%
Mandatory pools and government agencies		562		3	0.5	%
Structured settlements		551		16	2.9	%
Captives		1,507		21	1.4	%
Other(1)		698		244	35.0	%
Total	$	15,048	$	686	4.6	%

At December 31, 2007, $10.7 billion of ACE Limited recoverables were from rated reinsurers, of which 94.4% 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	Dow Chemical Co	Platinum Underwriters
Berkshire Hathaway Insurance Group	AIOI Insurance Group	Dukes Place Holdings	PMA Capital Corp
Chubb Insurance Group	Allianz	Electric Insurance Company Group	Power Corp Of Canada
Equitas	Allied World Assurance Group	Enstar Group Ltd	Renaissance Re Holdings Ltd
Everest Re Group	Allstate Group	Fairfax Financial	Royal & Sun Alliance Insurance Group
HDI Haftpflichtverband Der Deutschen Industrie Vag (Hannover)	Arch Capital	Federal Crop Insurance Corp	SCOR Group
Lloyd’s Of London	Aspen Insurance Holdings Ltd	FM Global Group	Sompo Japan Group
Munich Re Group	AVIVA Plc	Globale Rueckversicherungs-ag (Globale Re)	Tawa UK Ltd
Swiss Re Group	AXA	Hartford Insurance Group	Toa Reinsurance Company
XL Capital Group	Brit Insurance Holding Plc	Independence Blue Cross Group	Travelers Companies Inc
	CIGNA	IRB - Brasil Resseguros S.A. Group	Trenwick Group
	CNA Insurance Companies	Liberty Mutual Insurance Companies	White Mountains Insurance Group
	Dominion Insurance Co Ltd	Millea Holdings	WR Berkley Corp
		Partner Re	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 13

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, 2007	$	774		$	276		$	1,050
Provision at 12/31/07		43			173			216
% of gross		5.6	%		62.7	%		20.6	%
Net balance at December 31, 2007	$	731		$	103		$	834
Gross balance at March 31, 2008	$	789		$	282		$	1,071
Provision at 3/31/08		42			162			204
% of gross		5.3	%		57.4	%		19.0	%
Net balance at March 31, 2008(3)	$	747		$	120		$	867

(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 as 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 Rec-Paid Page 14

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

	March 31 2008					December 31 2007
Market Value
Fixed maturities available for sale	$	32,619				$	33,184
Fixed maturities held to maturity		2,960					3,015
Short-term investments (1)		4,795					2,631
Total	$	40,374				$	38,830
Asset Allocation by Market Value
Treasury	$	974		2	%	$	1,145		3	%
Agency		1,939		5	%		1,820		5	%
Corporate		8,906		22	%		9,015		23	%
Mortgage-backed securities		13,087		32	%		13,733		35	%
Asset-backed securities		1,060		3	%		1,150		3	%
Municipal		2,025		5	%		1,844		5	%
Non-U.S.		7,588		19	%		7,492		19	%
Short-term investments		4,795		12	%		2,631		7	%
Total	$	40,374		100	%	$	38,830		100	%
Credit Quality by Market Value
AAA	$	26,162		65	%	$	24,553		63	%
AA		3,746		9	%		3,747		10	%
A		4,620		12	%		4,590		12	%
BBB		3,188		8	%		3,297		8	%
BB		1,249		3	%		1,073		3	%
B		1,341		3	%		1,481		4	%
Other		68		0	%		89		0	%
Total	$	40,374		100	%	$	38,830		100	%
Cost/Amortized Cost
Fixed maturities available for sale	$	32,615				$	32,994
Fixed maturities held to maturity		2,913					2,987
Short-term investments		4,795					2,631
Subtotal		40,323					38,612
Equity securities		1,597					1,618
Other investments		992					880
Total	$	42,912				$	41,110
Avg. duration of fixed maturities, adjusted for int. rate swaps		3.5 years					3.5 years
Avg. market yield of fixed maturities		5.1	%				5.3	%
Avg. credit quality		AA					AA

(1) Liquidity required for the acquisition of Combined Insurance Company of America (Combined) on April 1, 2008.

Investments Page 15

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

Mortgage-backed and Asset-backed Fixed Income Portfolio
Market Value at March 31, 2008
	S&P Credit Rating
	AAA		AA		A		BBB		BB and below		Total
Mortgage-backed securities
Residential mortgage-backed (RMBS)
GNMA	$	477	$	—	$	—	$	—	$	—	$	477
FNMA		5,164		—		—		—		—		5,164
Freddie Mac		2,159		—		—		—		—		2,159
Total agency RMBS		7,800		—		—		—		—		7,800
Non-agency RMBS		2,851		10		2		11		—		2,874
Total residential mortgage-backed		10,651		10		2		11		—		10,674
Commercial mortgage-backed		2,398		3		9		3		—		2,413
Total mortgage-backed securities	$	13,049	$	13	$	11	$	14	$	—	$	13,087
Asset-backed securities
Sub-prime	$	124	$	2	$	7	$	—	$	—	$	133
Credit cards		61		—		17		8		—		86
Autos		596		32		8		—		—		636
Other		202		—		3		—		—		205
Total asset-backed securities	$	983	$	34	$	35	$	8	$	—	$	1,060

1) Insured municipal bonds represent $942 million, or 46% of our municipal bond holdings.

2) Insured asset-backed securities represent $192 million, or 18% of our asset-backed security holdings.

Investments 2 Page 16

ACE Limited Investment Portfolio - 3 (in millions of U.S. dollars) (Unaudited)

Mortgage-backed and Asset-backed Fixed Income Portfolio
Book Value at March 31, 2008
	S&P Credit Rating
	AAA		AA		A		BBB		BB and below		Total
Mortgage-backed securities
Residential mortgage-backed (RMBS)
GNMA	$	466	$	—	$	—	$	—	$	—	$	466
FNMA		5,043		—		—		—		—		5,043
Freddie Mac		2,103		—		—		—		—		2,103
Total agency RMBS		7,612		—		—		—		—		7,612
Non-agency RMBS		3,029		11		2		11		—		3,053
Total residential mortgage-backed		10,641		11		2		11		—		10,665
Commercial mortgage-backed		2,407		3		10		3		—		2,423
Total mortgage-backed securities	$	13,048	$	14	$	12	$	14	$	—	$	13,088
Asset-backed securities
Sub-prime	$	137	$	2	$	8	$	—	$	—	$	147
Credit cards		60		—		17		8		—		85
Autos		591		32		7		—		—		630
Other		201		—		3		—		—		204
Total asset-backed securities	$	989	$	34	$	35	$	8	$	—	$	1,066

1) Insured municipal bonds represent $931 million, or 46% of our municipal bond holdings.

2) Insured asset-backed securities represent $197 million, or 18% of our asset-backed security holdings.

Investments 3 Page 17

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

	Three months ended March 31, 2008
	Net Realized Gains (Losses) (1)			Net Unrealized Gains (Losses)			Net Impact
Fixed maturities	$	(105	)	$	(184	)	$	(289	)
Equity securities		(54	)		(156	)		(210	)
Equity and fixed income derivatives		(9	)		—			(9	)
Foreign exchange gains (losses)		6			—			6
Other		(26	)		(5	)		(31	)
Sub-total		(188	)		(345	)		(533	)
Unrealized losses from derivative transactions (2)		(165	)		—			(165	)
Total gains (losses)		(353	)		(345	)		(698	)
Partially-owned insurance companies (3)		(28	)		21			(7	)
Income tax expense (benefit)		(33	)		(22	)		(55	)
Net gains (losses)	$	(348	)	$	(302	)	$	(650	)

(1) The quarter includes impairments of $128M for fixed maturities, $36M for equities, and $25M for other investments.

(2) Other FAS 133 adjustments includes $183M of unrealized losses primarily on the guaranteed minimum income benefit derivatives from our life reinsurance operations.

(3) Net realized and unrealized 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 March 31, 2007
	Net Realized Gains (Losses) (4)			Net Unrealized Gains (Losses)			Net Impact
Fixed maturities	$	(21	)	$	57		$	36
Equity securities		34			(1	)		33
Equity and fixed income derivatives		(7	)		—			(7	)
Foreign exchange gains (losses)		—			—			—
Other		10			20			30
Sub-total		16			76			92
Unrealized losses from derivative transactions		—			—			—
Total gains (losses)		16			76			92
Income tax expense (benefit)		(22	)		13			(9	)
Net gains (losses)	$	38		$	63		$	101

(4) The quarter includes impairments of $37M for fixed maturities, $1M for equities, and $nil for other investments.

Investment Gains (Losses) Page 18

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

	March 31 2008			December 31 2007			December 31 2006
Total short-term debt (1)	$	1,341		$	372		$	578
Total long-term debt		2,114			1,811			1,560
Total debt	$	3,455		$	2,183		$	2,138
Total trust preferred securities	$	309		$	309		$	309
Perpetual preferred shares	$	557		$	557		$	557
Ordinary shareholders’ equity		16,178			16,120			13,721
Total shareholders’ equity	$	16,735		$	16,677		$	14,278
Total capitalization	$	20,499		$	19,169		$	16,725
Tangible shareholders’ equity (2)	$	13,972		$	13,946		$	11,547
Leverage ratios
Debt/ total capitalization		16.9	%		11.4	%		12.8	%
Debt plus trust preferred secutities/ total capitalization		18.4	%		13.0	%		14.6	%
Debt/ tangible equity		24.7	%		15.7	%		18.5	%
Debt plus trust preferred securities/ tangible equity		26.9	%		17.9	%		21.2	%
Debt plus total preferred stock/ total capitalization		21.1	%		15.9	%		18.0	%

(1) First quarter of 2008 includes $1.0 billion of repurchase agreements for the Combined acquisition.

(2) 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 March 31
	2008			2007
Numerator
Income excluding net realized gains (losses) (1)	$	725		$	663
Perpetual preferred dividend		(11	)		(11	)
Income to ordinary shares, excl. net realized gains (losses)		714			652
Net realized gains (losses), net of income tax		(348	)		38
Net income available to the holders of ordinary shares	$	366		$	690
Rollforward of Ordinary Shares
Ordinary Shares - beginning of period		329,704,531			326,455,468
Issued under employee stock purchase plan		93,228			104,162
Shares (cancelled) granted		1,174,680			1,394,898
Issued for option exercises		1,534,108			354,697
Ordinary Shares - end of period		332,506,547			328,309,225
Denominator
Weighted average shares outstanding		327,004,051			324,079,146
Effect of other dilutive securities		4,031,290			4,818,859
Adj. wtd. avg. shares outstanding and assumed conversions		331,035,341			328,898,005
Basic earnings per share
Income excluding net realized gains (losses) (1)	$	2.18		$	2.01
Net realized gains (losses), net of income tax		(1.06	)		0.12
Net income	$	1.12		$	2.13
Diluted earnings per share
Income excluding net realized gains (losses) (1)	$	2.16		$	1.98
Net realized gains (losses), net of income tax		(1.06	)		0.12
Net income	$	1.10		$	2.10

(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) and the related tax expense (benefit). 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. 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).

	1Q-08			4Q-07			3Q-07			2Q-07			1Q-07			Full Year 2007
Net income, as reported	$	377		$	572		$	656		$	649		$	701		$	2,578
Net realized gains (losses)		(353	)		(66	)		—			(11	)		16			(61	)
Net realized gains (losses) in other income (expense) (1)		(28	)		(57	)		(38	)		—			—			(95	)
Income tax expense (benefit) on net realized gains (losses)		(33	)		(2	)		(2	)		4			(22	)		(22	)
Income excluding net realized gains (losses)	$	725		$	693		$	692		$	664		$	663		$	2,712

(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
	March 31 2008			December 31 2007
Shareholders’ equity	$	16,735		$	16,677
Proceeds from issuance of perpetual preferred shares		(557	)		(557	)
Numerator for book value per share calculation		16,178			16,120
Less: goodwill		2,763			2,731
Numerator for tangible book value per share	$	13,415		$	13,389
Denominator		332,506,547			329,704,531
Book value per ordinary share	$	48.65		$	48.89
Tangible book value per ordinary share	$	40.35		$	40.61

Reconciliation Book Value Page 22

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

Consolidated Statement of Comprehensive Income
	1Q-08			4Q-07			3Q-07			2Q-07			1Q-07			Full Year 2007
Net income	$	377		$	572		$	656		$	649		$	701		$	2,578
Net unrealized appreciation (depreciation) on investments
Unrealized appreciation (depreciation) on investments		(497	)		133			218			(427	)		73			(3	)
Reclassification adjustment for net realized (gains) losses included in net income		173			6			6			12			3			27
Change in cumulative translation adjustment		27			12			58			19			16			105
Change in minimum pension liability		—			(1	)		(1	)		(2	)		—			(4	)
Income tax (expense) benefit related to other comprehensive income items		8			(37	)		(28	)		23			(18	)		(60	)
Other comprehensive income (loss)		(289	)		113			253			(375	)		74			65
Comprehensive income	$	88		$	685		$	909		$	274		$	775		$	2,643

Comprehensive Income Page 23

ACE Limited Glossary

Annualized return on ordinary shareholders’ equity (ROE): Income 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.

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.

Effective tax rate: Income tax expense divided by the sum of income tax expense and income 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.

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.

Glossary Page 24