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 21, 2014

ACE LIMITED

(Exact name of registrant as specified in its charter)

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

Baerengasse 32

CH-8001 Zurich, Switzerland

Telephone: +41 (0)43 456 76 00

(Address of principal executive offices)

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-(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 21, 2014, ACE Limited issued a Press Release reporting its third quarter 2014 results and the availability of its third quarter 2014 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

(d) Exhibits

Exhibit Number	Description
99.1	Press Release, Dated October 21, 2014, Reporting Third Quarter 2014 Results
99.2	Third Quarter 2014 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 21, 2014

EXHIBIT INDEX

Number	Description	Method of Filing
99.1	Press Release, Dated October 21, 2014,		Furnished herewith
	Reporting Third Quarter 2014 Results
99.2	Third Quarter 2014 Financial Supplement		Furnished herewith

EX-99.1

Exhibit 99.1

	ACE Limited   Bärengasse 32   CH-8001 Zurich   Switzerland	+41 (0)43 456 76 00 main    +41 (0)43 456 76 01 fax    www.acegroup.com
	Investor Contact:	Helen M. Wilson
		(441) 299-9283
		helen.wilson@acegroup.com
	Media Contact:	Jeffrey Zack
		(212) 827-4444
		jeffrey.zack@acegroup.com

ACE REPORTS RECORD QUARTERLY OPERATING INCOME OF $2.64 PER SHARE,

UP 6%; GLOBAL P&C NET PREMIUMS UP 4%; P&C COMBINED RATIO IS 86.3%

AND OPERATING RETURN ON EQUITY IS 12.6%

• After-tax operating income of $891 million for the quarter and $2.5 billion for the year⁽¹⁾ are both records

• P&C underwriting income of $586 million, up 4.9%

• Net investment income of $566 million, up 8.5%

• Operating cash flow of $1.1 billion

• Book value per share up 6.5% and tangible book value per share up 7.4% for the year

ZURICH – October 21, 2014 – ACE Limited (NYSE: ACE) today reported net income for the quarter ended September 30, 2014, of $2.32 per share, compared with $2.66 per share for the same quarter last year.⁽²⁾ Operating income was $2.64 per share, compared with $2.49 per share for the same quarter last year. Book value and tangible book value per share increased 0.2% and 0.4%, respectively, from June 30, 2014. Book value and tangible book value per share now stand at $90.38 and $74.05, respectively. Operating return on equity for the quarter was 12.6%. The property and casualty (P&C) combined ratio for the quarter was 86.3%.

Third Quarter Summary

(in millions, except per share amounts)

(Unaudited)

									(Per Share – Diluted)
	2014			2013		Change			2014			2013		Change
Operating income, net of tax	$	891		$	857		3.9	%	$	2.64		$	2.49		6.0	%
Adjusted net realized gains (losses), net of tax		(106	)		59		NM			(0.32	)		0.17		NM
Net income	$	785		$	916		(14.2	)%	$	2.32		$	2.66		(12.8	)%

For the nine months ended September 30, 2014, net income was $6.75 per share, compared with $8.02 per share for 2013. Operating income was $7.32 per share, compared with $6.95 per share for 2013, an increase of 5.3%. Book value and tangible book value per share increased 6.5% and 7.4%, respectively, from December 31, 2013. The P&C combined ratio for the nine months ended September 30, 2014, was 87.5%.

Nine Months Ended Summary

(in millions, except per share amounts)

(Unaudited)

									(Per Share – Diluted)
	2014			2013		Change			2014			2013		Change
Operating income, net of tax	$	2,493		$	2,393		4.2	%	$	7.32		$	6.95		5.3	%
Adjusted net realized gains (losses), net of tax		(195	)		367		NM			(0.57	)		1.07		NM
Net income	$	2,298		$	2,760		(16.7	)%	$	6.75		$	8.02		(15.8	)%

Evan G. Greenberg, Chairman and Chief Executive Officer of ACE Limited, commented: “ACE had record earnings for the quarter and nine months. After-tax operating income for the quarter of $2.64 per share was up 6%, driven by growth in underwriting income and investment income, both of which were up for the quarter and year. Our ROE in the quarter was 12.6%.

“P&C underwriting income was up 5% as a result of growth in earned premium and steady underwriting margin. The combined ratio of 86.3% benefitted from strong current accident year results, positive prior years’ reserve development and relatively light catastrophe losses. Net investment income was up 8.5%, due primarily to growth in our invested assets and partnership distributions.

“Net P&C premiums excluding crop insurance grew 4% in the quarter and 7% year to date. While growth naturally slowed a bit in the quarter given a more competitive market globally, we see many opportunities for growth due to our broad global diversification. We expect stronger growth in the fourth quarter in constant dollars.

“We continue to invest for the future. As we announced earlier, all of our regulatory approvals are now in hand for our acquisition of Itaú’s large corporate P&C insurance business in Brazil. We expect the transaction will now close October 31.”

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Operating highlights for the quarter ended September 30, 2014, were as follows:

	3Q			3Q
(in millions of U.S. dollars except for percentages)	2014			2013			Change
P&C
Net premiums written	$	4,232		$	4,141			2.2	%
Net premiums written constant-dollar				$	4,160			1.7	%
Underwriting income	$	586		$	558			4.9	%
Combined ratio		86.3	%		86.5	%
Current accident year underwriting income excluding catastrophe losses	$	440		$	426			3.2	%
Current accident year combined ratio excluding catastrophe losses		89.8	%		89.8	%
Global P&C (excludes Agriculture)
Net premiums written	$	3,468		$	3,336			4.0	%
Net premiums written constant-dollar				$	3,356			3.4	%
Underwriting income	$	505		$	493			2.5	%
Combined ratio		85.6	%		85.0	%
Current accident year underwriting income excluding catastrophe losses	$	360		$	369			(2.4	)%
Current accident year combined ratio excluding catastrophe losses		89.8	%		88.9	%
Agriculture
Net premiums written	$	764		$	805			(5.2	)%
Underwriting income	$	81		$	65			23.4	%
Combined ratio		89.5	%		92.3	%
Current accident year underwriting income excluding catastrophe losses	$	80		$	57			39.7	%
Current accident year combined ratio excluding catastrophe losses		89.6	%		93.3	%

• P&C net premiums earned increased 2.9%, and Global P&C net premiums earned increased 6.2%.

• The P&C expense ratio for the quarter was 27.8% compared with 25.8% last year. The Global P&C expense ratio, which excludes Agriculture, was 32.7% compared with 31.3% last year. The prior year Global P&C expense ratio includes a 1.0 point favorable impact for purchase accounting adjustments related to the Mexican acquisitions. The Agriculture expense ratio for the quarter was 5.8% compared with 4.3% last year. The current quarter ratio includes the unfavorable impact of lower crop insurance production as a result of lower commodity prices and lower ceded commission benefits due to the non-renewal of a third-party proportional reinsurance agreement.

• Total pre-tax and after-tax catastrophe losses including reinstatement premiums were $86 million (2.1 percentage points of the combined ratio) and $76 million, respectively, compared with $78 million (1.8 percentage points of the combined ratio) and $70 million, respectively, last year.

• Favorable prior period development pre-tax and after-tax for the quarter were $232 million (5.6 percentage points of the combined ratio) and $172 million, respectively, compared with $210 million (5.1 percentage points of the combined ratio) and $162 million, respectively, last year.

• Operating cash flow was $1.1 billion for the quarter.

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• Net loss reserves increased $93 million in the quarter and $286 million for the year, and the net paid-to-incurred ratio was 88% for the quarter and 94% for the year.

• Net investment income for the quarter increased 8.5% to $566 million, primarily due to an increase in the invested asset base, an increase in private equity distributions and an increase in call activity in the company’s corporate bond portfolio.

• Net realized and unrealized losses pre-tax totaled $447 million for the quarter. Net realized losses of $110 million included a loss of $95 million from derivative accounting related to variable annuity reinsurance. Net unrealized losses of $337 million were primarily related to an increase in market yields on the company’s corporate bond portfolio.

• Operating return on equity was 12.6% for the quarter and 11.9% year to date. Return on equity computed using net income was 10.4% for both the quarter and year to date.

• Share repurchases totaled $450 million, or approximately 4.3 million shares, during the quarter. Since the inception of the November 2013 share repurchase authorization, the company has repurchased approximately 11.2 million shares for $1.1 billion through October 20, 2014.

• Book value per share increased 0.2% to $90.38 from $90.19 at June 30, 2014, and increased 6.5% from $84.83 at December 31, 2013. Realized and unrealized losses and unfavorable foreign currency movement negatively impacted book value per share in the quarter.

• Tangible book value per share increased 0.4% to $74.05 from $73.77 at June 30, 2014, and increased 7.4% from $68.93 at December 31, 2013.

Details of financial results by business segment are available in the ACE Limited Financial Supplement. Key segment items for the quarter ended September 30, 2014, include:

• Insurance – North American P&C: Net premiums written increased 2.7%. The combined ratio was 91.4% for the quarter compared with 88.3%. The combined ratio was 87.8% for the year compared with 87.2%. The current accident year combined ratio excluding catastrophe losses for the quarter was 88.5% compared with 88.3%. The current accident year combined ratio excluding catastrophe losses for the year was 87.6% compared with 87.8%. Unfavorable prior period development in the quarter of $11 million included $63 million of adverse development for legacy environmental liability exposures.

• Insurance – North American Agriculture: Net premiums written decreased 5.2%. The combined ratio was 89.5% for the quarter compared with 92.3%. The combined ratio was 93.6% for the year compared with 91.1%. The current accident year combined ratio excluding catastrophe losses for the quarter was 89.6% compared with 93.3%. The current accident year combined ratio excluding catastrophe losses for the year was 89.4% compared with 91.8%.

• Insurance – Overseas General: Net premiums written increased 9.4%. The combined ratio was 80.1% for the quarter compared with 82.2%. The combined ratio was 85.7% for the year compared with 86.9%. The current accident year combined ratio excluding catastrophe losses for the quarter was 90.5% compared with 89.4%. The current accident year combined ratio excluding catastrophe losses for the year was 90.1% compared with 90.2%. Favorable prior period development in the quarter of $219 million included $52 million of favorable development for an older liability case.

Page 4/10

• Global Reinsurance: Net premiums written decreased 21.2% for the quarter primarily due to the non-renewal of a large workers’ compensation treaty. The combined ratio was 70.2% for the quarter compared with 65.8%. The combined ratio was 71.1% for the year compared with 65.1%. The current accident year combined ratio excluding catastrophe losses for the quarter was 75.7% compared with 71.0%. The current accident year combined ratio excluding catastrophe losses for the year was 75.4% compared with 70.0%.

• Life: Operating income was $72 million compared with $75 million. Net premiums written and deposits collected, excluding life reinsurance, increased 14.5% on a constant-dollar basis.

Please refer to the ACE Limited Financial Supplement, dated September 30, 2014, 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.

ACE will hold its third quarter earnings conference call on Wednesday, October 22, 2014, beginning at 8:30 a.m. Eastern. The earnings conference call will be available via live webcast at www.acegroup.com or by dialing 888-569-5033 (within the United States) or 719-325-2490 (international), passcode 8276801. Please refer to the ACE Group website in the Investor Information section under Calendar of Events for details. A replay of the call will be available until Wednesday, November 5, 2014, and the archived webcast will be available for approximately one month. To listen to the replay, please dial 888-203-1112 (in the United States) or 719-457-0820 (international), passcode 8276801.

ACE Group is one of the world’s largest multiline property and casualty insurers. With operations in 54 countries, ACE provides commercial and personal property and casualty insurance, personal accident and supplemental health insurance, reinsurance and life insurance to a diverse group of clients. ACE Limited, the parent company of ACE Group, is listed on the New York Stock Exchange (NYSE: ACE) and is a component of the S&P 500 index. Additional information can be found at: www.acegroup.com.

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⁽¹⁾  References to the year refer to the nine months ended September 30, 2014.

⁽²⁾ All comparisons are with the same period last year unless specifically stated.

Regulation G – Non-GAAP Financial Measures

In presenting our results, we 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 and financial condition. However, they should not be viewed as a substitute for measures determined in accordance with generally accepted accounting principles (GAAP).

Adjusted net realized gains (losses), net of tax, includes net realized gains (losses) and net realized gains (losses) recorded in other income (expense) related to unconsolidated subsidiaries, and excludes realized gains and losses on crop derivatives. These derivatives were purchased to provide economic benefit, in a manner similar to reinsurance protection, in the event that a significant decline in commodity pricing will impact underwriting results. We view gains and losses on these derivatives as part of the results of our underwriting operations, and therefore realized gains and losses from these derivatives are reclassified to adjusted losses and loss expenses. The P&C combined ratio includes adjusted losses and loss expenses in the ratio numerator.

Net premiums written on a constant-dollar basis is a financial measure which excludes the impact of foreign exchange. We believe it is useful to evaluate the trends in net premiums written, exclusive of the effect of fluctuations in exchange rates between the U.S. dollar and the currencies in which our international business is transacted, as these exchange rates could fluctuate significantly between periods and distort the analysis of trends. The impact is determined by assuming constant foreign exchange rates between periods by translating prior period results using the same local currency exchange rates as the comparable current period.

Underwriting income, P&C underwriting income, and Global P&C underwriting income are calculated by subtracting losses and loss expenses, policy benefits, policy acquisition costs and administrative expenses from net premiums earned. P&C underwriting income also includes gains (losses) on crop derivatives. 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 adjusted net realized gains (losses). Current accident year underwriting income excluding catastrophe losses is underwriting income adjusted to exclude catastrophe losses and prior period development (PPD). We believe it is useful to exclude catastrophe losses, as they are not predictable as to timing and amount, and PPD as these unexpected loss developments on historical reserves are not indicative of our current underwriting performance. We believe the use of these measures enhances the understanding of our results of operations by highlighting the underlying profitability of our insurance business.

Operating income or income excluding adjusted 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 adjusted net realized gains (losses) because the amount of these gains (losses) is heavily influenced by the availability of market opportunities.

P&C combined ratio excluding catastrophe losses and PPD or current accident year P&C combined ratio excluding catastrophe losses exclude impacts of catastrophe losses and PPD. We believe this measure provides a better evaluation of our core underwriting performance and enhances the understanding of the trends in our property and casualty business that may be obscured by these items.

Global P&C performance metrics comprise consolidated operating results (including corporate) and exclude the operating results of the company’s Life and Insurance – North American Agriculture segments. We believe that these measures are useful and meaningful to investors as they are used by management to assess the company’s global P&C operations which are the most economically similar. We exclude the Insurance – North American Agriculture and Life segments because the results of these businesses do not always correlate with the results of our global P&C operations.

Life net premiums written and deposits collected, excluding life reinsurance, is adjusted to include deposits collected on universal life and investment contracts (life deposits) and exclude results from our life reinsurance business. Life deposits are not reflected as revenues in our consolidated statements of operations in accordance with GAAP. We include life deposits in presenting growth in our Life business because new life deposits are an important component of production and key to our efforts to grow our business. We exclude results associated with life reinsurance as there is no new life reinsurance business currently being written.

Operating return on equity (ROE) or ROE calculated using operating income is an annualized financial measure. The ROE numerator includes income adjusted to exclude adjusted net realized gains (losses), net of tax. The ROE denominator includes the average shareholders’ equity for the period adjusted to exclude unrealized gains (losses) on investments, net of tax. To annualize a quarterly rate, multiply by four. Annualized ROE calculated using operating income is a useful measure as it enhances the understanding of the return on shareholders’ equity by highlighting the underlying profitability relative to shareholders’ equity excluding the effect of unrealized gains and losses on our investments.

Tangible book value per common share is shareholders’ equity less goodwill and other intangible assets divided by the shares outstanding. We believe that goodwill and other intangible assets are not indicative of our underlying insurance results or trends and make book value comparisons to less acquisitive peer companies less meaningful.

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Other income (expense) – operating excludes from consolidated Other income (expense) the portion of net realized gains and losses related to unconsolidated entities and gains and losses from fair value changes in separate account assets that do not qualify for separate account reporting under GAAP. Net realized gains (losses) related to unconsolidated entities is excluded from operating income in order to enhance the understanding of our core results of operations as they are heavily influenced by, and fluctuate in part according to market conditions.

See reconciliation of Non-GAAP Financial Measures on pages 21-23 in the Financial Supplement. These measures should not be viewed as a substitute for net income, return on equity, or effective tax rate determined in accordance with GAAP.

NM – not meaningful comparison

Cautionary Statement Regarding Forward-Looking Statements:

Forward-looking statements made in this press release, such as those related to company performance including 2014 performance and growth opportunities, and our pending acquisition of the large corporate P&C business of Itaú Unibanco S.A., reflect our 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 that could cause actual results to differ materially, including without limitation, the following: competition, pricing and policy term trends, the levels of new and renewal business achieved, the frequency of unpredictable catastrophic events, actual loss experience, uncertainties in the reserving or settlement process, integration activities and performance of 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, rating agency action, possible terrorism or the outbreak and effects of war, economic, political, regulatory, insurance and reinsurance business conditions, potential strategic opportunities including acquisitions and our ability to achieve and integrate them, as well as management’s response to these factors, and other factors identified in our filings with the Securities and Exchange Commission. Given uncertainties, it is possible the closing of the above-referenced acquisition could also be delayed or not occur. 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. We undertake 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)

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ACE Limited

Summary Consolidated Balance Sheets

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

(Unaudited)

	September 30 2014		December 31 2013
Assets
Investments	$	63,254	$	60,928
Cash		806		579
Insurance and reinsurance balances receivable		5,189		5,026
Reinsurance recoverable on losses and loss expenses		10,945		11,227
Other assets		17,363		16,750
Total assets	$	97,557	$	94,510
Liabilities
Unpaid losses and loss expenses	$	37,447	$	37,443
Unearned premiums		8,020		7,539
Other liabilities		22,073		20,703
Total liabilities	$	67,540	$	65,685
Shareholders’ equity
Total shareholders’ equity		30,017		28,825
Total liabilities and shareholders’ equity	$	97,557	$	94,510
Book value per common share	$	90.38	$	84.83

Page 8/10

ACE Limited

Summary Consolidated Financial Data

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

(Unaudited)

	Three Months Ended						Nine Months Ended
	September 30						September 30
	2014			2013			2014			2013
Gross premiums written	$	6,264		$	6,373		$	17,644		$	17,366
Net premiums written		4,729			4,620			13,473			12,809
Net premiums earned		4,754			4,610			13,056			12,250
Losses and loss expenses		2,684			2,655			7,233			6,831
Policy benefits		125			138			383			379
Policy acquisition costs		825			678			2,311			1,957
Administrative expenses		554			563			1,655			1,641
Net investment income		566			522			1,675			1,587
Net realized gains (losses)		(120	)		40			(297	)		350
Interest expense		70			72			213			205
Other income (expense):
Gains (losses) from separate account assets		(6	)		14			5			7
Other		25			(9	)		56			(29	)
Income tax expense		176			155			402			392
Net income	$	785		$	916		$	2,298		$	2,760
Diluted earnings per share:
Operating income	$	2.64		$	2.49		$	7.32		$	6.95
Net income	$	2.32		$	2.66		$	6.75		$	8.02
Weighted average diluted shares outstanding		337.7			343.8			340.4			344.1
P&C combined ratio
Loss and loss expense ratio		58.5	%		60.7	%		58.1	%		59.0	%
Policy acquisition cost ratio		16.5	%		14.3	%		16.9	%		15.7	%
Administrative expense ratio		11.3	%		11.5	%		12.5	%		12.8	%
P&C combined ratio		86.3	%		86.5	%		87.5	%		87.5	%
P&C underwriting income	$	586		$	558		$	1,454		$	1,356
Other income (expense) – operating	$	(30	)	$	(31	)	$	(86	)	$	(96	)

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ACE Limited

Consolidated Supplemental Segment Information

(in millions of U.S. dollars)

(Unaudited)

	Three Months Ended						Nine Months Ended
	September 30						September 30
	2014			2013			2014			2013
Gross Premiums Written
Insurance – North American P&C	$	2,126		$	2,135		$	6,497		$	6,281
Insurance – North American Agriculture		1,241			1,446			2,076			2,444
Insurance – Overseas General		2,156			2,018			6,641			6,188
Global Reinsurance		213			264			854			903
Life		528			510			1,576			1,550
Total	$	6,264		$	6,373		$	17,644		$	17,366
Net Premiums Written
Insurance – North American P&C	$	1,541		$	1,500		$	4,594		$	4,313
Insurance – North American Agriculture		764			805			1,346			1,371
Insurance – Overseas General		1,719			1,571			5,250			4,821
Global Reinsurance		208			265			794			836
Life		497			479			1,489			1,468
Total	$	4,729		$	4,620		$	13,473		$	12,809
Net Premiums Earned
Insurance – North American P&C	$	1,518		$	1,444		$	4,547		$	4,210
Insurance – North American Agriculture		766			849			1,199			1,252
Insurance – Overseas General		1,726			1,611			5,047			4,633
Global Reinsurance		255			239			800			731
Life		489			467			1,463			1,424
Total	$	4,754		$	4,610		$	13,056		$	12,250
Operating Income (loss)
Insurance – North American P&C	$	337		$	342		$	1,126		$	1,044
Insurance – North American Agriculture		57			50			51			83
Insurance – Overseas General		348			320			869			815
Global Reinsurance		145			131			435			431
Life		72			75			221			221
Corporate		(68	)		(61	)		(209	)		(201	)
Total	$	891		$	857		$	2,493		$	2,393

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EX-99.2

Exhibit 99.2

Investor Contact Helen M. Wilson Phone: (441) 299-9283 email: investorrelations@acegroup.com	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.
	Cautionary Statement Regarding Forward-Looking Statements:
	Any forward-looking statements made in this financial supplement reflect ACE’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, our 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.
	Our forward-looking statements could also be affected by competition, pricing and policy term trends, 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. We undertake 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 and Operating Income by Line of Business		4
III.	Global P&C Results
	- Global P&C Results—Consecutive Quarters		5
IV.	Segment Results
	- Insurance—North American—For Reference Only		6
	- Insurance—North American P&C		7
	- Insurance—North American Agriculture		8
	- Insurance—Overseas General		9
	- Global Reinsurance		10
	- Life		11
V.	Balance Sheet Details
	- Loss Reserve Rollforward		12
	- Reinsurance Recoverable Analysis		13
	- Investment Portfolio		14 - 17
	- Net Realized and Unrealized Gains (Losses)		18
	- Capital Structure		19
	- Computation of Basic and Diluted Earnings Per Share		20
VI.	Other Disclosures
	- Non-GAAP Financial Measures		21 - 23
	- Book Value and Book Value per Common Share		24
	- Glossary		25

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

Note: All dollar amounts in the Financial Supplement are rounded. However, percent changes and ratios are calculated using whole dollars. Accordingly, calculations using rounded dollars may differ.

												Constant $															Constant $
							% Change					% Change									% Change						% Change
	Three months ended September 30						3Q-14 vs.			Constant $		3Q-14 vs.			Nine months ended September 30						YTD-14 vs.			Constant $			YTD-14 vs.
	2014			2013			3Q-13			2013 (1)		3Q-13 (1)			2014			2013			YTD-13			2013 (1)			YTD-13 (1)
Gross premiums written	$	6,264		$	6,373			-1.7	%	$	6,399		-2.1	%	$	17,644		$	17,366			1.6	%	$	17,273			2.2	%
Net premiums written	$	4,729		$	4,620			2.4	%	$	4,636		2.0	%	$	13,473		$	12,809			5.2	%	$	12,733			5.8	%
P&C net premiums written (2)	$	4,232		$	4,141			2.2	%	$	4,160		1.7	%	$	11,984		$	11,341			5.7	%	$	11,292			6.1	%
Global P&C net premiums written (2)	$	3,468		$	3,336			4.0	%	$	3,356		3.4	%	$	10,638		$	9,970			6.7	%	$	9,922			7.2	%
Net premiums earned	$	4,754		$	4,610			3.1	%	$	4,624		2.8	%	$	13,056		$	12,250			6.6	%	$	12,174			7.2	%
Net investment income	$	566		$	522			8.5	%						$	1,675		$	1,587			5.6	%
Operating income	$	891		$	857			3.9	%						$	2,493		$	2,393			4.2	%
Net income	$	785		$	916			-14.2	%						$	2,298		$	2,760			-16.7	%
Comprehensive income	$	298		$	1,030			NM							$	2,754		$	1,247			NM
Operating cash flow	$	1,126		$	928										$	3,222		$	2,736
P&C combined ratio (2)
Loss and loss expense ratio		58.5	%		60.7	%										58.1	%		59.0	%
Underwriting and administrative expense ratio		27.8	%		25.8	%										29.4	%		28.5	%
Combined ratio		86.3	%		86.5	%										87.5	%		87.5	%
Operating return on equity (ROE)		12.6	%		13.0	%										11.9	%		12.3	%
ROE		10.4	%		13.2	%										10.4	%		13.2	%
Operating effective tax rate (3)		16.9	%		14.9	%										14.2	%		12.4	%
Effective tax rate		18.3	%		14.4	%										14.9	%		12.4	%
Diluted earnings per share
Operating income	$	2.64		$	2.49			6.0	%						$	7.32		$	6.95			5.3	%
Net income	$	2.32		$	2.66			-12.8	%						$	6.75		$	8.02			-15.8	%
																					% Change 3Q-14 vs. 3Q-13			December 31 2013			% Change 3Q-14 vs. 4Q-13
Book value per common share															$	90.38		$	82.98			8.9	%	$	84.83			6.5	%
Tangible book value per common share															$	74.05		$	66.91			10.7	%	$	68.93			7.4	%
Tangible book value per common share excluding 2014 acquisition (4)															$	74.43		$	66.91			11.2	%	$	68.93			8.0	%
Weighted average basic common shares outstanding		334.5			340.9											337.1			340.9
Weighted average diluted common shares outstanding		337.7			343.8											340.4			344.1
Debt plus trust preferred securities/ tangible capital																20.2	%		20.9	%					20.4	%

(1) Prior periods on a constant dollar basis.

(2) See non-GAAP financial measures.

(3) Operating effective tax rate is dependent upon the mix of earnings from different jurisdictions with various tax rates. A change in the geographic mix of earnings would change the effective tax rate. The increase in the operating effective tax rate for the quarter and YTD was primarily due to a lower percentage of operating earnings being generated in lower tax paying jurisdictions.

(4) For 2014, tangible book value per common share excludes the impact from goodwill and intangibles relating to the acquisition of The Siam Commercial Samaggi Insurance PCL of $127 million.

Financial Highlights Page 1

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

ACE Limited Consolidated

	3Q-14			2Q-14			1Q-14			4Q-13			3Q-13			YTD 2014			YTD 2013			Full Year 2013
Consolidated Results (Including Corporate) Excluding Life Segment (1)
Gross premiums written	$	5,736		$	5,480		$	4,852		$	4,936		$	5,863		$	16,068		$	15,816		$	20,752
Net premiums written		4,232			4,061			3,691			3,712			4,141			11,984			11,341			15,053
Net premiums earned		4,265			3,842			3,486			3,882			4,143			11,593			10,826			14,708
Adjusted losses and loss expenses (1)		2,494			2,234			2,012			2,378			2,515			6,740			6,389			8,767
Policy acquisition costs		702			637			617			605			592			1,956			1,696			2,301
Administrative expenses		483			493			467			483			478			1,443			1,385			1,868
Underwriting income		586			478			390			416			558			1,454			1,356			1,772
Net investment income		497			490			489			493			461			1,476			1,400			1,893
Interest expense		66			69			68			67			68			203			193			260
Other income (expense) - operating (2)		(29	)		(26	)		(23	)		(23	)		(29	)		(78	)		(82	)		(105	)
Income tax expense		169			120			88			81			140			377			309			390
Operating income (including Corporate) excluding Life segment		819			753			700			738			782			2,272			2,172			2,910
Life segment operating income		72			72			77			86			75			221			221			307
Consolidated operating income		891			825			777			824			857			2,493			2,393			3,217
Adjusted net realized gains (losses) (1)		(165	)		(81	)		(102	)		154			41			(348	)		351			505
Net realized gains (losses) related to unconsolidated entities		55			36			51			25			22			142			67			92
Income tax expense (benefit) on adjusted net realized gains (losses)		(4	)		1			(8	)		5			4			(11	)		51			56
Consolidated net income	$	785		$	779		$	734		$	998		$	916		$	2,298		$	2,760		$	3,758
% Change versus prior year period (1)
Net premiums written as reported		2.2	%		4.0	%		12.0	%		18.2	%		-2.0	%		5.7	%		3.5	%		6.8	%
Net premiums earned as reported		2.9	%		7.1	%		12.6	%		15.5	%		-1.0	%		7.1	%		4.1	%		6.9	%
Net premiums written constant $		1.7	%		4.5	%		13.7	%		19.8	%		-0.9	%		6.1	%		4.4	%		7.8	%
Net premiums earned constant $		2.5	%		7.4	%		14.8	%		17.0	%		-0.1	%		7.6	%		4.9	%		7.9	%
Other ratios
Net premiums written/gross premiums written (1)		74	%		74	%		76	%		75	%		71	%		75	%		72	%		73	%
Operating effective tax rate		16.9	%		13.7	%		11.5	%		9.2	%		14.9	%		14.2	%		12.4	%		11.6	%
P&C combined ratio (1)
Loss and loss expense ratio		58.5	%		58.2	%		57.7	%		61.3	%		60.7	%		58.1	%		59.0	%		59.6	%
Policy acquisition cost ratio		16.5	%		16.6	%		17.7	%		15.6	%		14.3	%		16.9	%		15.7	%		15.7	%
Administrative expense ratio		11.3	%		12.7	%		13.4	%		12.4	%		11.5	%		12.5	%		12.8	%		12.7	%
Combined ratio		86.3	%		87.5	%		88.8	%		89.3	%		86.5	%		87.5	%		87.5	%		88.0	%
Combined ratio excluding catastrophe losses and PPD		89.8	%		88.7	%		88.9	%		91.5	%		89.8	%		89.2	%		89.5	%		90.0	%
P&C expense ratio		27.8	%		29.3	%		31.1	%		28.0	%		25.8	%		29.4	%		28.5	%		28.4	%
P&C expense ratio excluding A&H		24.3	%		26.0	%		27.5	%		24.0	%		21.9	%		25.8	%		24.7	%		24.5	%
Catastrophe reinstatement premiums collected - pre-tax	$	1		$	—		$	—		$	1		$	2		$	1		$	2		$	3
Catastrophe losses - pre-tax	$	87		$	80		$	53		$	37		$	80		$	220		$	193		$	230
Favorable prior period development (PPD) - pre-tax (3)	$	(232	)	$	(126	)	$	(62	)	$	(122	)	$	(210	)	$	(420	)	$	(408	)	$	(530	)
Loss and loss expense ratio excluding catastrophe losses and PPD		62.2	%		59.4	%		57.5	%		63.5	%		64.1	%		59.9	%		61.1	%		61.8	%

(1) See non-GAAP financial measures.

(2) Excludes portion of net realized investment gains and losses related to unconsolidated entities.

(3) For Q3 2014, favorable prior period development is net of $34 million of net earned premium adjustments related to the Insurance – North American P&C and Global Reinsurance segments. For YTD 2014, favorable prior period development includes $1 million of favorable net earned premium adjustments related to the Insurance – North American P&C, Insurance – North American Agriculture, and Global Reinsurance segments.

Consolidated Results Page 2

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

	September 30 2014			June 30 2014			March 31 2014			December 31 2013
Assets
Fixed maturities available for sale, at fair value	$	49,148		$	51,601		$	49,611		$	49,254
Fixed maturities held to maturity, at amortized cost		7,548			5,774			5,887			6,098
Equity securities, at fair value		546			907			851			837
Short-term investments, at fair value		2,753			2,108			2,526			1,763
Other investments		3,259			3,230			3,170			2,976
Total investments		63,254			63,620			62,045			60,928
Cash		806			594			847			579
Securities lending collateral		1,440			1,440			1,550			1,632
Insurance and reinsurance balances receivable		5,189			5,316			4,761			5,026
Reinsurance recoverable on losses and loss expenses		10,945			10,768			10,755			11,227
Deferred policy acquisition costs		2,592			2,562			2,402			2,313
Value of business acquired		491			514			517			536
Prepaid reinsurance premiums		1,711			1,867			1,721			1,675
Goodwill and other intangible assets		5,425			5,522			5,382			5,404
Deferred tax assets		408			234			516			616
Investments in partially-owned insurance companies		495			470			466			470
Other assets		4,801			4,540			4,217			4,104
Total assets	$	97,557		$	97,447		$	95,179		$	94,510
Liabilities
Unpaid losses and loss expenses	$	37,447		$	37,177		$	36,866		$	37,443
Unearned premiums		8,020			8,296			7,791			7,539
Future policy benefits		4,782			4,778			4,632			4,615
Insurance and reinsurance balances payable		3,804			3,794			3,734			3,628
Securities lending payable		1,441			1,441			1,551			1,633
Accounts payable, accrued expenses, and other liabilities		5,829			5,419			5,218			4,810
Short-term debt		1,851			1,851			1,901			1,901
Long-term debt		4,057			4,057			3,808			3,807
Trust preferred securities		309			309			309			309
Total liabilities		67,540			67,122			65,810			65,685
Shareholders’ equity
Total shareholders’ equity, excl. AOCI		28,409			28,230			27,843			27,673
Accumulated other comprehensive income (AOCI)		1,608			2,095			1,526			1,152
Total shareholders’ equity		30,017			30,325			29,369			28,825
Total liabilities and shareholders’ equity	$	97,557		$	97,447		$	95,179		$	94,510
Book value per common share	$	90.38		$	90.19		$	86.90		$	84.83
% change over prior quarter		0.2	%		3.8	%		2.4	%		2.2	%
Tangible book value per common share	$	74.05		$	73.77		$	70.97		$	68.93
% change over prior quarter		0.4	%		3.9	%		3.0	%		3.0	%

Consol Bal Sheet Page 3

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

ACE Limited Consolidated

												Constant $														Constant $
							% Change					% Change									% Change					% Change
							3Q-14 vs.			Constant $		3Q-14 vs.			YTD			YTD			YTD-14 vs.			Constant $		YTD-14 vs.
	3Q-14			3Q-13			3Q-13			3Q-13 (2)		3Q-13 (2)			2014			2013			YTD-13			YTD-13 (2)		YTD-13 (2)
Net premiums written
Property and all other	$	1,234		$	1,135			8.7	%						$	4,071		$	3,723			9.3	%
Casualty		1,546			1,568			-1.4	%							4,495			4,288			4.8	%
Subtotal		2,780			2,703			2.8	%	$	2,715		2.4	%		8,566			8,011			6.9	%	$	7,989		7.2	%
Agriculture		764			805			-5.2	%		805		-5.2	%		1,346			1,371			-1.8	%		1,371		-1.8	%
Personal accident (A&H) (1)		937			879			6.6	%		884		6.1	%		2,815			2,718			3.6	%		2,679		5.1	%
Life		248			233			6.5	%		232		6.8	%		746			709			5.2	%		694		7.6	%
Total consolidated	$	4,729		$	4,620			2.4	%	$	4,636		2.0	%	$	13,473		$	12,809			5.2	%	$	12,733		5.8	%
% of Total Consolidated
Property and all other		26	%		25	%										30	%		29	%
Casualty		33	%		34	%										33	%		33	%
Subtotal		59	%		59	%										63	%		62	%
Agriculture		16	%		17	%										10	%		11	%
Personal accident (A&H) (1)		20	%		19	%										21	%		21	%
Life		5	%		5	%										6	%		6	%
Total consolidated		100	%		100	%										100	%		100	%
Net premiums earned
Property and all other	$	1,313		$	1,218			7.9	%						$	3,847		$	3,443			11.7	%
Casualty		1,493			1,430			4.4	%							4,515			4,237			6.6	%
Subtotal		2,806			2,648			6.0	%	$	2,658		5.6	%		8,362			7,680			8.9	%	$	7,652		9.3	%
Agriculture		766			849			-9.8	%		849		-9.8	%		1,199			1,252			-4.2	%		1,252		-4.2	%
Personal accident (A&H) (1)		942			893			5.6	%		897		5.1	%		2,770			2,647			4.7	%		2,612		6.1	%
Life		240			220			9.0	%		220		9.0	%		725			671			8.0	%		658		10.1	%
Total consolidated	$	4,754		$	4,610			3.1	%	$	4,624		2.8	%	$	13,056		$	12,250			6.6	%	$	12,174		7.2	%
% of Total Consolidated
Property and all other		28	%		27	%										29	%		28	%
Casualty		31	%		31	%										35	%		35	%
Subtotal		59	%		58	%										64	%		63	%
Agriculture		16	%		18	%										9	%		10	%
Personal accident (A&H) (1)		20	%		19	%										21	%		22	%
Life		5	%		5	%										6	%		5	%
Total consolidated		100	%		100	%										100	%		100	%
Operating income, after-tax
Property, casualty, and all other	$	669		$	647			3.4	%	$	652		2.7	%	$	1,961		$	1,835			6.9	%	$	1,841		6.5	%
Agriculture		57			50			13.3	%		50		13.3	%		51			83			-38.6	%		83		-38.6	%
Personal accident (A&H) (1)		124			121			2.5	%		121		2.5	%		363			368			-1.3	%		363		0.0	%
Life		41			39			4.9	%		39		4.9	%		118			107			10.1	%		107		10.1	%
Total consolidated	$	891		$	857			3.9	%	$	862		3.3	%	$	2,493		$	2,393			4.2	%	$	2,394		4.1	%
% of Total Consolidated
Property, casualty, and all other		75	%		75	%										78	%		77	%
Agriculture		6	%		6	%										2	%		3	%
Personal accident (A&H) (1)		14	%		14	%										15	%		15	%
Life		5	%		5	%										5	%		5	%
Total consolidated		100	%		100	%										100	%		100	%

(1) For purposes of this schedule only, A&H results from our Combined North American and International businesses, normally included in the Life and Insurance – Overseas General segments, respectively, are included in the Personal Accident (A&H) line items above.

(2) Prior periods on a constant-dollar basis.

Line of Business Page 4

ACE Limited Global P&C Results - Consecutive Quarters (in millions of U.S. dollars, except ratios) (Unaudited)

Global P&C includes the company’s Insurance – North American P&C segment (refer to page 7), Insurance – Overseas General segment (refer to page 9), Global Reinsurance segment (refer to page 10), and Corporate (not separately disclosed in the Financial Supplement). Global P&C excludes the Insurance – North American Agriculture segment.

Global P&C (Including Corporate)

																YTD			YTD			Full Year
	3Q-14			2Q-14			1Q-14			4Q-13			3Q-13			2014			2013			2013
Gross premiums written	$	4,495		$	4,879		$	4,618		$	4,719		$	4,417		$	13,992		$	13,372		$	18,091
Net premiums written		3,468			3,673			3,497			3,456			3,336			10,638			9,970			13,426
Net premiums earned		3,499			3,512			3,383			3,456			3,294			10,394			9,574			13,030
Losses and loss expenses		1,853			1,955			1,884			1,925			1,768			5,692			5,317			7,242
Policy acquisition costs		661			614			612			608			560			1,887			1,640			2,248
Administrative expenses		480			492			466			485			473			1,438			1,372			1,857
Underwriting income		505			451			421			438			493			1,377			1,245			1,683
Net investment income		491			484			482			486			455			1,457			1,381			1,867
Interest expense		66			69			68			66			68			203			193			259
Other income (expense)—operating (1)		(22	)		(17	)		(15	)		(15	)		(21	)		(54	)		(58	)		(73	)
Income tax expense		146			115			95			85			127			356			286			371
Global P&C operating income		762			734			725			758			732			2,221			2,089			2,847
Net realized gains (losses)		(76	)		(9	)		(26	)		—			(3	)		(111	)		143			143
Net realized gains (losses) related to unconsolidated entities		51			38			53			27			24			142			60			87
Income tax expense (benefit) on net realized gains (losses)		(5	)		1			(5	)		6			4			(9	)		49			55
Global P&C net income	$	742		$	762		$	757		$	779		$	749		$	2,261		$	2,243		$	3,022
% Change versus prior year period
Net premiums written as reported		4.0	%		6.4	%		9.9	%		13.1	%		8.9	%		6.7	%		8.6	%		9.7	%
Net premiums earned as reported		6.2	%		8.5	%		11.2	%		11.6	%		9.1	%		8.6	%		8.9	%		9.6	%
Net premiums written constant $		3.4	%		7.0	%		11.6	%		14.7	%		10.6	%		7.2	%		9.7	%		11.0	%
Net premiums earned constant $		5.7	%		8.8	%		13.4	%		13.1	%		10.5	%		9.2	%		10.0	%		10.8	%
Other ratios
Net premiums written/gross premiums written		77	%		75	%		76	%		73	%		76	%		76	%		75	%		74	%
Combined ratio
Loss and loss expense ratio		52.9	%		55.7	%		55.7	%		55.7	%		53.7	%		54.8	%		55.5	%		55.6	%
Policy acquisition cost ratio		18.9	%		17.5	%		18.1	%		17.6	%		17.0	%		18.1	%		17.1	%		17.3	%
Administrative expense ratio		13.8	%		13.9	%		13.8	%		14.1	%		14.3	%		13.8	%		14.4	%		14.2	%
Combined ratio		85.6	%		87.1	%		87.6	%		87.4	%		85.0	%		86.7	%		87.0	%		87.1	%
Combined ratio excluding catastrophe losses and PPD		89.8	%		88.7	%		89.0	%		89.9	%		88.9	%		89.2	%		89.2	%		89.4	%
Expense ratio		32.7	%		31.4	%		31.9	%		31.7	%		31.3	%		31.9	%		31.5	%		31.5	%
Expense ratio excluding A&H		29.3	%		28.2	%		28.4	%		27.9	%		27.6	%		28.6	%		27.8	%		27.9	%
Catastrophe reinstatement premiums collected—pre-tax	$	1		$	—		$	—		$	1		$	2		$	1		$	2		$	3
Catastrophe losses—pre-tax	$	85		$	71		$	52		$	35		$	78		$	208		$	188		$	223
Favorable prior period development (PPD)—pre-tax (2)	$	(229	)	$	(126	)	$	(100	)	$	(122	)	$	(200	)	$	(455	)	$	(395	)	$	(517	)
Loss and loss expense ratio excluding catastrophe losses and PPD		57.5	%		57.3	%		57.1	%		58.3	%		57.7	%		57.3	%		57.8	%		58.0	%

(1) Excludes portion of net realized investment gains and losses related to unconsolidated entities.

(2) For Q3 2014 and YTD 2014, favorable prior period development is net of $34 million of net earned premium adjustments on loss sensitive policies and YTD 2014 is net of $2 million of profit-sharing commissions that are included in the expense ratio.

Global P&C Page 5

ACE Limited Insurance - North American (in millions of U.S. dollars, except ratios) (Unaudited)

The table below combines the company’s Insurance – North American P&C segment (refer to page 7) and Insurance – North American Agriculture segment (refer to page 8) into total Insurance – North American business presentation for reference purposes only.

Insurance - North American

																YTD			YTD			Full Year
	3Q-14			2Q-14			1Q-14			4Q-13			3Q-13			2014			2013			2013
Gross premiums written	$	3,367		$	2,948		$	2,258		$	2,656		$	3,581		$	8,573		$	8,725		$	11,381
Net premiums written		2,305			2,023			1,612			1,858			2,305			5,940			5,684			7,542
Net premiums earned		2,284			1,872			1,590			1,937			2,293			5,746			5,462			7,399
Losses and loss expenses (1)		1,694			1,295			1,068			1,438			1,710			4,057			3,863			5,301
Policy acquisition costs		210			175			164			150			191			549			500			650
Administrative expenses		168			176			162			162			158			506			450			612
Underwriting income		212			226			196			187			234			634			649			836
Net investment income		283			271			277			273			260			831			774			1,047
Interest expense		2			2			3			2			3			7			4			6
Other income (expense)—operating		(8	)		(4	)		(8	)		(7	)		(11	)		(20	)		(30	)		(37	)
Income tax expense		91			94			76			69			88			261			262			331
Operating income		394			397			386			382			392			1,177			1,127			1,509
Net realized gains (losses) (1)		(5	)		(11	)		(9	)		9			10			(25	)		65			74
Net realized gains (losses) related to unconsolidated entities		32			19			20			19			16			71			44			63
Income tax expense on net realized gains (losses)		5			2			—			10			5			7			26			36
Net income	$	416		$	403		$	397		$	400		$	413		$	1,216		$	1,210		$	1,610
Combined ratio
Loss and loss expense ratio		74.1	%		69.2	%		67.2	%		74.2	%		74.6	%		70.6	%		70.7	%		71.6	%
Policy acquisition cost ratio		9.2	%		9.3	%		10.3	%		7.7	%		8.4	%		9.5	%		9.2	%		8.8	%
Administrative expense ratio		7.4	%		9.4	%		10.2	%		8.5	%		6.8	%		8.9	%		8.2	%		8.3	%
Combined ratio		90.7	%		87.9	%		87.7	%		90.4	%		89.8	%		89.0	%		88.1	%		88.7	%
Combined ratio excluding catastrophe losses and PPD		88.9	%		87.6	%		87.2	%		91.1	%		90.1	%		88.0	%		88.7	%		89.3	%
Catastrophe reinstatement premiums expensed—pre-tax	$	—		$	—		$	—		$	—		$	—		$	—		$	(1	)	$	(1	)
Catastrophe losses—pre-tax	$	37		$	45		$	33		$	14		$	23		$	115		$	87		$	101
Unfavorable (favorable) prior period development (PPD)—pre-tax	$	8		$	(39	)	$	(30	)	$	(28	)	$	(29	)	$	(61	)	$	(119	)	$	(147	)
Loss and loss expense ratio excluding catastrophe losses and PPD		72.5	%		68.9	%		66.2	%		75.0	%		75.0	%		69.6	%		71.4	%		72.4	%
% Change versus prior year period
Net premiums written		-0.1	%		2.1	%		15.5	%		22.5	%		-9.1	%		4.5	%		-0.1	%		4.6	%
Net premiums earned		-0.4	%		5.2	%		14.4	%		20.4	%		-7.2	%		5.2	%		0.9	%		5.4	%
Other ratios
Net premiums written/gross premiums written		68	%		69	%		71	%		70	%		64	%		69	%		65	%		66	%

(1) See non-GAAP financial measures.

Insurance - North American Page 6

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

Insurance - North American P&C

																YTD			YTD			Full Year
	3Q-14			2Q-14			1Q-14			4Q-13			3Q-13			2014			2013			2013
Gross premiums written	$	2,126		$	2,347		$	2,024		$	2,439		$	2,135		$	6,497		$	6,281		$	8,720
Net premiums written		1,541			1,635			1,418			1,602			1,500			4,594			4,313			5,915
Net premiums earned		1,518			1,542			1,487			1,511			1,444			4,547			4,210			5,721
Losses and loss expenses		1,053			1,016			940			985			963			3,009			2,791			3,776
Policy acquisition costs		169			152			159			153			159			480			444			597
Administrative expenses		165			175			161			164			153			501			437			601
Underwriting income		131			199			227			209			169			557			538			747
Net investment income		277			265			270			266			254			812			755			1,021
Interest expense		2			2			3			1			3			7			4			5
Other income (expense)—operating		(1	)		5			—			1			(3	)		4			(6	)		(5	)
Income tax expense		68			89			83			73			75			240			239			312
Operating income		337			378			411			402			342			1,126			1,044			1,446
Net realized gains (losses)		(5	)		(11	)		(9	)		9			9			(25	)		63			72
Net realized gains (losses) related to unconsolidated entities		32			19			20			19			16			71			44			63
Income tax expense on net realized gains (losses)		5			2			—			10			4			7			25			35
Net income	$	359		$	384		$	422		$	420		$	363		$	1,165		$	1,126		$	1,546
Combined ratio
Loss and loss expense ratio		69.3	%		66.0	%		63.2	%		65.2	%		66.7	%		66.2	%		66.3	%		66.0	%
Policy acquisition cost ratio		11.1	%		9.8	%		10.7	%		10.1	%		11.1	%		10.5	%		10.6	%		10.4	%
Administrative expense ratio		11.0	%		11.3	%		10.8	%		10.9	%		10.5	%		11.1	%		10.3	%		10.5	%
Combined ratio		91.4	%		87.1	%		84.7	%		86.2	%		88.3	%		87.8	%		87.2	%		86.9	%
Combined ratio excluding catastrophe losses and PPD		88.5	%		87.3	%		87.1	%		87.2	%		88.3	%		87.6	%		87.8	%		87.6	%
Catastrophe reinstatement premiums expensed—pre-tax	$	—		$	—		$	—		$	—		$	—		$	—		$	(1	)	$	(1	)
Catastrophe losses—pre-tax	$	35		$	36		$	32		$	12		$	21		$	103		$	82		$	94
Unfavorable (favorable) prior period development (PPD)—pre-tax (1)	$	11		$	(39	)	$	(68	)	$	(28	)	$	(19	)	$	(96	)	$	(106	)	$	(134	)
Loss and loss expense ratio excluding catastrophe losses and PPD		66.9	%		66.2	%		65.7	%		66.3	%		66.9	%		66.2	%		67.0	%		66.8	%
% Change versus prior year period
Net premiums written		2.7	%		6.9	%		10.5	%		11.8	%		9.3	%		6.5	%		10.2	%		10.6	%
Net premiums earned		5.1	%		7.9	%		11.2	%		12.3	%		10.6	%		8.0	%		10.7	%		11.1	%
Other ratios
Net premiums written/gross premiums written		72	%		70	%		70	%		66	%		70	%		71	%		69	%		68	%

(1) For Q3 2014, prior period development includes $63 million of adverse development for legacy environmental liability exposures and $25 million of unfavorable net earned premium adjustments on loss sensitive polices. For YTD 2014, prior period development is also net of $2 million of unfavorable profit-sharing commissions that are included in the expense ratio.

Insurance - North American P&C Page 7

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

Insurance - North American Agriculture

																YTD			YTD			Full Year
	3Q-14			2Q-14			1Q-14			4Q-13			3Q-13			2014			2013			2013
Gross premiums written	$	1,241		$	601		$	234		$	217		$	1,446		$	2,076		$	2,444		$	2,661
Net premiums written		764			388			194			256			805			1,346			1,371			1,627
Net premiums earned		766			330			103			426			849			1,199			1,252			1,678
Losses and loss expenses (1)		641			279			128			453			747			1,048			1,072			1,525
Policy acquisition costs		41			23			5			(3	)		32			69			56			53
Administrative expenses		3			1			1			(2	)		5			5			13			11
Underwriting income (loss) (2)		81			27			(31	)		(22	)		65			77			111			89
Net investment income		6			6			7			7			6			19			19			26
Interest expense		—			—			—			1			—			—			—			1
Other income (expense)—operating		(7	)		(9	)		(8	)		(8	)		(8	)		(24	)		(24	)		(32	)
Income tax expense (benefit)		23			5			(7	)		(4	)		13			21			23			19
Operating income (loss)		57			19			(25	)		(20	)		50			51			83			63
Net realized gains (losses) excluding gains (losses) on crop derivatives (1)		—			—			—			—			1			—			2			2
Net realized gains (losses) related to unconsolidated entities		—			—			—			—			—			—			—			—
Income tax expense on net realized gains (losses)		—			—			—			—			1			—			1			1
Net income (loss)	$	57		$	19		$	(25	)	$	(20	)	$	50		$	51		$	84		$	64
Combined ratio
Loss and loss expense ratio		83.7	%		84.4	%		124.6	%		106.3	%		88.0	%		87.4	%		85.6	%		90.9	%
Policy acquisition cost ratio		5.4	%		7.0	%		4.5	%		-0.5	%		3.8	%		5.8	%		4.4	%		3.2	%
Administrative expense ratio		0.4	%		0.4	%		1.2	%		-0.6	%		0.5	%		0.4	%		1.1	%		0.6	%
Combined ratio		89.5	%		91.8	%		130.3	%		105.2	%		92.3	%		93.6	%		91.1	%		94.7	%
Combined ratio excluding catastrophe losses and PPD		89.6	%		89.1	%		88.9	%		104.8	%		93.3	%		89.4	%		91.8	%		95.1	%
Catastrophe reinstatement premiums—pre-tax	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—
Catastrophe losses—pre-tax	$	2		$	9		$	1		$	2		$	2		$	12		$	5		$	7
Unfavorable (favorable) prior period development (PPD)—pre-tax (3)	$	(3	)	$	—		$	38		$	—		$	(10	)	$	35		$	(13	)	$	(13	)
Loss and loss expense ratio excluding catastrophe losses and PPD		83.8	%		81.8	%		78.3	%		105.8	%		88.9	%		82.9	%		86.3	%		91.3	%
% Change versus prior year period
Net premiums written		-5.2	%		-14.2	%		72.1	%		203.6	%		-30.8	%		-1.8	%		-22.8	%		-12.5	%
Net premiums earned		-9.8	%		-5.7	%		96.8	%		62.3	%		-27.2	%		-4.2	%		-22.2	%		-10.4	%
Other ratios
Net premiums written/gross premiums written		62	%		65	%		83	%		118	%		56	%		65	%		56	%		61	%

(1) (Gains) losses on crop derivatives are reclassified from Net realized gains (losses) for this presentation.

(2) We assess the performance of our Insurance – North American Agriculture segment based on underwriting income which includes (gains) losses on crop derivatives.

(3) For YTD 2014, unfavorable prior period development is net of $35 million of favorable net earned premium adjustments and $1 million of favorable profit-sharing commissions.

Insurance - North American Agriculture Page 8

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

Insurance - Overseas General

																YTD			YTD			Full Year
	3Q-14			2Q-14			1Q-14			4Q-13			3Q-13			2014			2013			2013
Gross premiums written	$	2,156		$	2,224		$	2,261		$	2,126		$	2,018		$	6,641		$	6,188		$	8,314
Net premiums written		1,719			1,760			1,771			1,699			1,571			5,250			4,821			6,520
Net premiums earned		1,726			1,709			1,612			1,700			1,611			5,047			4,633			6,333
Losses and loss expenses		707			830			817			835			712			2,354			2,227			3,062
Policy acquisition costs		418			402			386			405			349			1,206			1,048			1,453
Administrative expenses		258			256			250			258			263			764			750			1,008
Underwriting income		343			221			159			202			287			723			608			810
Net investment income		130			136			132			143			128			398			396			539
Interest expense		2			1			1			1			1			4			4			5
Other income (expense)—operating		(15	)		(17	)		(9	)		(13	)		(16	)		(41	)		(35	)		(48	)
Income tax expense		108			57			42			52			78			207			150			202
Operating income		348			282			239			279			320			869			815			1,094
Net realized gains (losses)		(75	)		14			(10	)		(16	)		(8	)		(71	)		34			18
Net realized gains (losses) related to unconsolidated entities		9			9			15			4			2			33			5			9
Income tax expense (benefit) on net realized gains (losses)		(11	)		(2	)		(5	)		(4	)		—			(18	)		24			20
Net income	$	293		$	307		$	249		$	271		$	314		$	849		$	830		$	1,101
Combined ratio
Loss and loss expense ratio		40.9	%		48.6	%		50.7	%		49.2	%		44.2	%		46.6	%		48.1	%		48.4	%
Policy acquisition cost ratio (1)		24.3	%		23.5	%		23.9	%		23.8	%		21.6	%		23.9	%		22.6	%		22.9	%
Administrative expense ratio		14.9	%		15.0	%		15.5	%		15.1	%		16.4	%		15.2	%		16.2	%		15.9	%
Combined ratio		80.1	%		87.1	%		90.1	%		88.1	%		82.2	%		85.7	%		86.9	%		87.2	%
Combined ratio excluding catastrophe losses and PPD		90.5	%		89.3	%		90.5	%		91.6	%		89.4	%		90.1	%		90.2	%		90.5	%
Catastrophe reinstatement premiums—pre-tax	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—
Catastrophe losses—pre-tax	$	39		$	26		$	17		$	17		$	33		$	82		$	71		$	88
Favorable prior period development (PPD)—pre-tax (2)	$	(219	)	$	(63	)	$	(23	)	$	(76	)	$	(149	)	$	(305	)	$	(223	)	$	(299	)
Loss and loss expense ratio excluding catastrophe losses and PPD		51.3	%		50.8	%		51.1	%		52.6	%		51.4	%		51.1	%		51.3	%		51.7	%
% Change versus prior year period
Net premiums written as reported		9.4	%		8.0	%		9.3	%		15.1	%		13.5	%		8.9	%		9.9	%		11.2	%
Net premiums earned as reported		7.2	%		9.4	%		10.4	%		13.5	%		12.5	%		9.0	%		9.2	%		10.3	%
Net premiums written constant $		8.1	%		8.8	%		12.3	%		18.2	%		17.4	%		9.7	%		12.2	%		13.7	%
Net premiums earned constant $		6.0	%		9.8	%		14.6	%		16.5	%		15.4	%		9.9	%		11.4	%		12.7	%
Other ratios
Net premiums written/gross premiums written		80	%		79	%		78	%		80	%		78	%		79	%		78	%		78	%

(1) The increase in the Q3 2014 policy acquisition cost ratio over the third quarter of last year was primarily due to a 2.1 point favorable impact in the prior year quarter for purchase accounting adjustments related to the Mexican acquisitions.

(2) For Q3 2014, prior period development includes the favorable impact from the release of $52 million for an older liability case.

Insurance - Overseas General Page 9

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

Global Reinsurance

																YTD			YTD			Full Year
	3Q-14			2Q-14			1Q-14			4Q-13			3Q-13			2014			2013			2013
Gross premiums written	$	213		$	308		$	333		$	154		$	264		$	854		$	903		$	1,057
Net premiums written		208			278			308			155			265			794			836			991
Net premiums earned		255			261			284			245			239			800			731			976
Losses and loss expenses		92			109			126			104			93			327			292			396
Policy acquisition costs		74			60			67			49			52			201			148			197
Administrative expenses		13			14			14			14			12			41			36			50
Underwriting income		76			78			77			78			82			231			255			333
Net investment income		81			80			77			71			66			238			209			280
Interest expense		1			2			1			1			2			4			4			5
Other income (expense)—operating		—			—			1			2			1			1			2			4
Income tax expense		11			10			10			5			16			31			31			36
Operating income		145			146			144			145			131			435			431			576
Net realized gains (losses)		6			(15	)		(8	)		7			(5	)		(17	)		46			53
Net realized gains (losses) related to unconsolidated entities		10			10			18			4			6			38			11			15
Income tax expense on net realized gains (losses)		—			—			—			—			—			—			—			—
Net income	$	161		$	141		$	154		$	156		$	132		$	456		$	488		$	644
Combined ratio
Loss and loss expense ratio		36.2	%		41.7	%		44.4	%		42.5	%		38.9	%		40.9	%		39.9	%		40.5	%
Policy acquisition cost ratio		28.8	%		23.1	%		23.5	%		20.4	%		21.7	%		25.0	%		20.2	%		20.3	%
Administrative expense ratio		5.2	%		5.1	%		5.0	%		5.5	%		5.2	%		5.2	%		5.0	%		5.1	%
Combined ratio		70.2	%		69.9	%		72.9	%		68.4	%		65.8	%		71.1	%		65.1	%		65.9	%
Combined ratio excluding catastrophe losses and PPD		75.7	%		75.4	%		75.1	%		73.6	%		71.0	%		75.4	%		70.0	%		70.9	%
Catastrophe reinstatement premiums collected—pre-tax	$	1		$	—		$	—		$	1		$	2		$	1		$	3		$	4
Catastrophe losses—pre-tax	$	11		$	9		$	3		$	6		$	24		$	23		$	35		$	41
Favorable prior period development (PPD)—pre-tax (1)	$	(21	)	$	(24	)	$	(9	)	$	(18	)	$	(32	)	$	(54	)	$	(66	)	$	(84	)
Loss and loss expense ratio excluding catastrophe losses and PPD		42.8	%		47.2	%		46.5	%		47.7	%		44.6	%		45.5	%		44.9	%		45.6	%
% Change versus prior year period
Net premiums written as reported		-21.2	%		-4.9	%		10.3	%		5.5	%		-13.6	%		-5.0	%		-4.8	%		-3.3	%
Net premiums earned as reported		6.3	%		6.1	%		15.5	%		-3.7	%		-15.0	%		9.3	%		-2.3	%		-2.6	%
Net premiums written constant $		-21.8	%		-5.0	%		10.5	%		5.3	%		-13.5	%		-5.2	%		-4.7	%		-3.3	%
Net premiums earned constant $		5.7	%		5.5	%		15.4	%		-3.6	%		-14.9	%		8.9	%		-2.1	%		-2.5	%
Other ratios
Net premiums written/gross premiums written		98	%		90	%		92	%		101	%		100	%		93	%		93	%		94	%

(1) For Q3 2014 and YTD 2014, favorable prior period development is net of $9 million of net earned premium adjustments on loss sensitive policies.

Global Reinsurance Page 10

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

Life

																YTD			YTD			Full Year
	3Q-14			2Q-14			1Q-14			4Q-13			3Q-13			2014			2013			2013
Gross premiums written	$	528		$	526		$	522		$	526		$	510		$	1,576		$	1,550		$	2,076
Net premiums written		497			498			494			504			479			1,489			1,468			1,972
Net premiums earned		489			490			484			481			467			1,463			1,424			1,905
Losses and loss expenses		145			146			151			139			141			442			443			582
Policy benefits (1)		125			144			114			136			138			383			379			515
(Gains) losses from fair value changes in separate account assets (1)		6			(17	)		6			(9	)		(14	)		(5	)		(7	)		(16	)
Policy acquisition costs		123			121			111			97			86			355			261			358
Administrative expenses		71			73			68			87			85			212			256			343
Net investment income		69			66			64			64			61			199			187			251
Life underwriting income (2)		88			89			98			95			92			275			279			374
Interest expense		4			3			3			3			4			10			12			15
Other income (expense) - operating (1)		(1	)		(2	)		(5	)		(4	)		(2	)		(8	)		(14	)		(18	)
Income tax expense		11			12			13			2			11			36			32			34
Operating income		72			72			77			86			75			221			221			307
Net realized gains (losses):
Mark-to-market on guaranteed living benefits derivative (net of related hedges)		(95	)		(70	)		(67	)		149			39			(232	)		150			299
Foreign exchange gains (losses) and all other		6			(2	)		(9	)		5			4			(5	)		56			61
Net realized gains (losses) related to unconsolidated entities		4			(2	)		(2	)		(2	)		(2	)		—			7			5
Income tax expense (benefit) on net realized gains (losses)		1			—			(3	)		(1	)		(1	)		(2	)		1			—
Net income (loss)	$	(14	)	$	(2	)	$	2		$	239		$	117		$	(14	)	$	433		$	672
% Change versus prior year period
Net premiums written as reported		3.8	%		2.2	%		-1.6	%		-2.6	%		-1.9	%		1.4	%		0.4	%		-0.4	%
Net premiums earned as reported		4.8	%		2.2	%		1.3	%		-1.5	%		-2.7	%		2.8	%		-0.2	%		-0.6	%
Net premiums written constant $ (3)		4.4	%		4.4	%		1.1	%		-1.4	%		-1.0	%		3.3	%		0.7	%		0.2	%
Net premiums earned constant $		5.4	%		4.2	%		4.0	%		-0.4	%		-1.9	%		4.5	%		0.0	%		-0.1	%

(1) (Gains) losses from fair value changes in separate account assets that do not qualify for separate account reporting under GAAP are reclassified from Other income (expense) for purposes of presenting Life underwriting income. The offsetting movement in the separate account liabilities is included in Policy benefits.

(2) We assess the performance of our Life business based on Life underwriting income which includes Net investment income and (Gains) losses from fair value changes in separate account assets.

(3) Net premiums written and deposits breakdown:

					Constant $							Constant $
					% Change							% Change
			Constant $		3Q-14 vs.					Constant $		YTD-14 vs.
	3Q-14		3Q-13		3Q-13			YTD-14		YTD-2013		YTD-13
Life excluding life reinsurance (4)	$	677	$	591		14.5	%	$	2,021	$	1,826		10.6	%
Life reinsurance including variable annuity		66		70		-6.2	%		198		216		-8.2	%
Total Life	$	743	$	661		12.3	%	$	2,219	$	2,042		8.6	%

(4) Includes deposits collected on universal life and investment contracts of $246 million for Q3 2014 and $186 million for Q3 2013 on a constant-dollar basis. For the year-to-date period, includes deposits of $730 million for 2014 and $601 million for 2013 on a constant-dollar basis. Consistent with GAAP, premiums collected on universal life and investment contracts are considered deposits and excluded from revenues.

Life Page 11

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

	Unpaid Losses									Net Paid to
	Gross			Ceded			Net			Incurred Ratio
Balance at December 31, 2012	$	37,946		$	11,399		$	26,547
Losses and loss expenses incurred		2,483			557			1,926
Losses and loss expenses paid		(2,987	)		(932	)		(2,055	)		107	%
Other (incl. foreign exch. revaluation)		(360	)		(106	)		(254	)
Balance at March 31, 2013	$	37,082		$	10,918		$	26,164
Losses and loss expenses incurred		3,007			757			2,250
Losses and loss expenses paid		(2,797	)		(941	)		(1,856	)		83	%
Other (incl. foreign exch. revaluation)		51			4			47
Balance at June 30, 2013	$	37,343		$	10,738		$	26,605
Losses and loss expenses incurred		3,617			962			2,655
Losses and loss expenses paid		(3,285	)		(942	)		(2,343	)		88	%
Other (incl. foreign exch. revaluation)		207			61			146
Balance at September 30, 2013	$	37,882		$	10,819		$	27,063
Losses and loss expenses incurred		3,322			805			2,517
Losses and loss expenses paid		(3,716	)		(993	)		(2,723	)		108	%
Other (incl. foreign exch. revaluation)		(45	)		(19	)		(26	)
Balance at December 31, 2013	$	37,443		$	10,612		$	26,831
Losses and loss expenses incurred		2,462			301			2,161
Losses and loss expenses paid		(3,059	)		(762	)		(2,297	)		106	%
Other (incl. foreign exch. revaluation)		20			16			4
Balance at March 31, 2014	$	36,866		$	10,167		$	26,699
Losses and loss expenses incurred		3,004			616			2,388
Losses and loss expenses paid		(2,878	)		(729	)		(2,149	)		90	%
Other (incl. foreign exch. revaluation)		185			56			129
Balance at June 30, 2014	$	37,177		$	10,110		$	27,067
Losses and loss expenses incurred		3,840			1,156			2,684
Losses and loss expenses paid		(3,165	)		(810	)		(2,355	)		88	%
Other (incl. foreign exch. revaluation)		(405	)		(120	)		(285	)
Balance at September 30, 2014	$	37,447		$	10,336		$	27,111
Add net recoverable on paid losses		—			609			(609	)
Balance including net recoverable on paid losses	$	37,447		$	10,945		$	26,502

Loss Reserve Rollforward Page 12

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

Net Reinsurance Recoverable by Division

	September 30			June 30			March 31			December 31
	2014			2014			2014			2013
Reinsurance recoverable on paid losses and loss expenses
Active operations	$	380		$	418		$	351		$	376
Brandywine and Other Run-off		342			353			357			356
Total	$	722		$	771		$	708		$	732
Reinsurance recoverable on unpaid losses and loss expenses
Active operations	$	9,460		$	9,193		$	9,184		$	9,576
Brandywine and Other Run-off		1,142			1,192			1,249			1,309
Total	$	10,602		$	10,385		$	10,433		$	10,885
Gross reinsurance recoverable
Active operations	$	9,840		$	9,611		$	9,535		$	9,952
Brandywine and Other Run-off		1,484			1,545			1,606			1,665
Total	$	11,324		$	11,156		$	11,141		$	11,617
Provision for uncollectible reinsurance (1)
Active operations	$	(251	)	$	(251	)	$	(249	)	$	(251	)
Brandywine and Other Run-off		(128	)		(137	)		(137	)		(139	)
Total	$	(379	)	$	(388	)	$	(386	)	$	(390	)
Net reinsurance recoverable
Active operations	$	9,589		$	9,360		$	9,286		$	9,701
Brandywine and Other Run-off		1,356			1,408			1,469			1,526
Total	$	10,945		$	10,768		$	10,755		$	11,227

(1) The provision for uncollectible reinsurance is based on a default analysis applied to gross reinsurance recoverables, net of approximately $2.4 billion of collateral.

Reinsurance Recoverable Page 13

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

	September 30 2014					June 30 2014					March 31 2014					December 31 2013
Market Value
Fixed maturities available for sale (1)	$	49,148				$	51,601				$	49,611				$	49,254
Fixed maturities held to maturity (1)		7,763					6,015					6,080					6,263
Short-term investments		2,753					2,108					2,526					1,763
Total fixed maturities	$	59,664				$	59,724				$	58,217				$	57,280
Asset Allocation by Market Value
Treasury	$	2,223		4	%	$	2,386		4	%	$	2,411		4	%	$	2,327		4	%
Agency		1,272		2	%		1,278		2	%		1,349		2	%		1,454		3	%
Corporate and asset-backed		19,863		33	%		19,959		33	%		19,650		34	%		19,475		34	%
Mortgage-backed		12,454		21	%		12,659		21	%		12,277		21	%		12,273		21	%
Municipal		4,890		8	%		4,872		8	%		4,599		8	%		4,500		8	%
Non-U.S.		16,209		27	%		16,462		28	%		15,405		27	%		15,488		27	%
Short-term investments		2,753		5	%		2,108		4	%		2,526		4	%		1,763		3	%
Total fixed maturities	$	59,664		100	%	$	59,724		100	%	$	58,217		100	%	$	57,280		100	%
Credit Quality by Market Value
AAA	$	9,105		15	%	$	9,073		15	%	$	9,410		16	%	$	8,677		15	%
AA		21,783		37	%		22,470		38	%		21,652		37	%		21,520		38	%
A		11,640		19	%		11,400		19	%		11,112		19	%		11,168		19	%
BBB		8,397		14	%		7,996		13	%		7,306		12	%		7,193		12	%
BB		4,607		8	%		4,435		7	%		4,451		8	%		4,418		8	%
B		3,939		7	%		4,126		7	%		3,965		7	%		3,940		7	%
Other		193		0	%		224		1	%		321		1	%		364		1	%
Total fixed maturities	$	59,664		100	%	$	59,724		100	%	$	58,217		100	%	$	57,280		100	%
Cost/Amortized Cost
Fixed maturities available for sale (1)	$	47,688				$	49,719				$	48,282				$	48,406
Fixed maturities held to maturity (1)		7,548					5,774					5,887					6,098
Short-term investments		2,753					2,108					2,526					1,763
Subtotal fixed maturities		57,989					57,601					56,695					56,267
Equity securities		480					874					845					841
Other investments		2,910					2,876					2,823					2,671
Total investment portfolio	$	61,379				$	61,351				$	60,363				$	59,779
Avg. duration of fixed maturities		4.1 years					4.0 years					4.0 years					4.0 years
Avg. market yield of fixed maturities		2.8	%				2.6	%				2.8	%				3.0	%
Avg. credit quality		A/Aa					A/Aa					A/Aa					A/Aa
Avg. yield on invested assets		3.7	%				3.7	%				3.7	%				3.8	%

(1) As part of our fixed income diversification strategy, we have decided to hold to maturity certain previously classified available for sale securities. Because ACE has the intent to hold these securities to maturity, a transfer of such securities with a fair value of $2.0 billion was made in Q3 2014, from Fixed maturities available for sale to Fixed maturities held to maturity.

Investments Page 14

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

Mortgage-backed Fixed Income Portfolio

Mortgage-backed securities

	S&P Credit Rating
	AAA		AA		A		BBB		BB and below		Total
Market Value at September 30, 2014
Agency residential mortgage-backed (RMBS)	$	—	$	10,303	$	—	$	—	$	—	$	10,303
Non-agency RMBS		44		6		19		13		17		99
Commercial mortgage-backed		2,023		14		12		3		—		2,052
Total mortgage-backed securities at market value	$	2,067	$	10,323	$	31	$	16	$	17	$	12,454

U.S. Corporate and Asset-backed Fixed Income Portfolios

Market Value at September 30, 2014

	S&P Credit Rating
	Investment Grade
	AAA		AA		A		BBB		Total
Asset-backed	$	438	$	86	$	—	$	—	$	524
Banks		—		1		2,177		306		2,484
Basic Materials		—		3		79		353		435
Communications		—		51		491		842		1,384
Consumer, Cyclical		—		96		341		455		892
Consumer, Non-Cyclical		53		579		981		709		2,322
Diversified Financial Services		—		78		258		95		431
Energy		31		35		192		791		1,049
Industrial		—		347		381		340		1,068
Utilities		—		11		609		461		1,081
All Others		56		130		570		574		1,330
Total	$	578	$	1,417	$	6,079	$	4,926	$	13,000

Market Value at September 30, 2014

	S&P Credit Rating
	Below Investment Grade
	BB		B		CCC		Total
Asset-backed	$	—	$	3	$	12	$	15
Banks		1		4		1		6
Basic Materials		151		135		—		286
Communications		517		511		5		1,033
Consumer, Cyclical		436		585		26		1,047
Consumer, Non-Cyclical		552		877		35		1,464
Diversified Financial Services		123		86		4		213
Energy		739		313		28		1,080
Industrial		358		380		9		747
Utilities		257		27		—		284
All Others		359		317		12		688
Total	$	3,493	$	3,238	$	132	$	6,863

Investments 2 Page 15

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

Non-U.S. Fixed Income Portfolio

September 30, 2014

Non-U.S. Government Securities

	Market Value by S&P Credit Rating
	AAA		AA		A		BBB		BB and below		Total
United Kingdom	$	991	$	—	$	—	$	—	$	—	$	991
Republic of Korea		—		744		51		—		—		795
Canada		541		—		—		—		—		541
United Mexican States		—		2		383		132		—		517
Kingdom of Thailand		—		—		404		—		—		404
Province of Ontario		—		385		—		—		—		385
Federative Republic of Brazil		—		—		—		279		—		279
Province of Quebec		—		—		261		—		—		261
Japan		—		254		—		—		—		254
France		—		221		—		—		—		221
Other Non-U.S. Government Securities		865		839		314		355		464		2,837
Total	$	2,397	$	2,445	$	1,413	$	766	$	464	$	7,485
Non-U.S. Corporate Securities
	Market Value by S&P Credit Rating
	AAA		AA		A		BBB		BB and below		Total
United Kingdom	$	135	$	56	$	803	$	384	$	206	$	1,584
Canada		127		119		308		389		164		1,107
Australia		88		111		267		107		64		637
United States		2		116		98		223		180		619
France		49		52		219		143		95		558
Netherlands		31		250		122		94		26		523
Germany		136		21		134		100		30		421
Switzerland		48		16		73		119		53		309
Euro Supranational		230		46		—		—		—		276
Brazil		—		—		55		175		30		260
Other Non-U.S. Corporate Securities		122		403		946		540		419		2,430
Total	$	968	$	1,190	$	3,025	$	2,274	$	1,267	$	8,724

Non-U.S. Corporate Investment Portfolio

Countries represent the ultimate parent company’s country of risk. Non-U.S. corporate securities could be issued by foreign subsidiaries of U.S. corporations.

Investments 3 Page 16

ACE Limited Investment Portfolio - 4 (in millions of U.S. dollars) (Unaudited)

Fixed Maturity Investment Portfolio

Top 10 Global Corporate Exposures

	September 30, 2014	Market Value		Rating
1	JP Morgan Chase & Co	$	451	A
2	General Electric Co		420	AA+
3	Goldman Sachs Group Inc		353	A-
4	Verizon Communications Inc		270	BBB+
5	Wells Fargo & Co		264	A+
6	HSBC Holdings Plc		258	A+
7	Morgan Stanley		252	A-
8	Bank of America Corp		233	A-
9	AT&T Inc		218	A-
10	Citigroup Inc		210	A-

Investments 4 Page 17

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

	Three months ended September 30, 2014									Nine months ended September 30, 2014
	Net Realized			Net Unrealized						Net Realized			Net Unrealized
	Gains			Gains			Net			Gains			Gains			Net
	(Losses) (1)			(Losses)			Impact			(Losses) (1)			(Losses)			Impact
Fixed maturities	$	18		$	(361	)	$	(343	)	$	49		$	638		$	687
Fixed income derivatives		(13	)		—			(13	)		(53	)		—			(53	)
Total fixed maturities		5			(361	)		(356	)		(4	)		638			634
Public equity		(56	)		36			(20	)		(60	)		70			10
Private equity		51			(5	)		46			143			43			186
Total equity		(5	)		31			26			83			113			196
Mark-to-market losses from derivative transactions (2)		(95	)		—			(95	)		(231	)		—			(231	)
Foreign exchange losses (2)		(19	)		—			(19	)		(42	)		—			(42	)
Other		—			—			—			(8	)		—			(8	)
Partially-owned entities (3)		4			(7	)		(3	)		(4	)		(7	)		(11	)
Income tax expense (benefit)		(4	)		(47	)		(51	)		(11	)		161			150
Net gains (losses)	$	(106	)	$	(290	)	$	(396	)	$	(195	)	$	583		$	388

(1) Other-than-temporary impairments for the quarter includes $4 million for fixed maturities. Year to date other-than-temporary impairments includes $17 million for fixed maturities, $3 million for private equity, and $7 million for public equity.

(2) Includes $95 million of realized losses from variable annuity reinsurance for the quarter which comprises $80 million in mark-to-market losses from derivative transactions and $15 million of losses on applicable hedges. The variable annuity reinsurance foreign exchange gains for the quarter were $4 million. For the year, the $232 million of realized losses from variable annuity reinsurance comprises $126 million in mark-to-market losses from derivative transactions and $106 million of losses on applicable hedges. The variable annuity reinsurance foreign exchange gains for the year were $2 million.

(3) Partially-owned entities are investments where we hold more than an insignificant percentage of the investee’s shares. The net income or loss is included in other income (expense).

	Three months ended September 30, 2013									Nine months ended September 30, 2013
	Net Realized			Net Unrealized						Net Realized		Net Unrealized
	Gains			Gains			Net			Gains		Gains			Net
	(Losses) (4)			(Losses)			Impact			(Losses) (4)		(Losses)			Impact
Fixed maturities	$	17		$	(4	)	$	13		$	84	$	(1,661	)	$	(1,577	)
Fixed income derivatives		4			—			4			62		—			62
Total fixed maturities		21			(4	)		17			146		(1,661	)		(1,515	)
Public equity		7			2			9			13		(41	)		(28	)
Private equity		27			(6	)		21			63		34			97
Total equity		34			(4	)		30			76		(7	)		69
Mark-to-market gains from derivative transactions (5)		39			—			39			149		—			149
Foreign exchange gains (losses) (5)		(26	)		—			(26	)		45		—			45
Other		—			—			—			—		1			1
Partially-owned entities (6)		(5	)		—			(5	)		2		—			2
Income tax expense (benefit)		4			(9	)		(5	)		51		(353	)		(302	)
Net gains (losses)	$	59		$	1		$	60		$	367	$	(1,314	)	$	(947	)

(4) Other-than-temporary impairments for the quarter includes $4 million for fixed maturities. Year to date other-than-temporary impairments includes $11 million of fixed maturities, $2 million for private equity, and $1 million for public equity.

(5) Includes $39 million of realized gains from variable annuity reinsurance for the quarter which comprises $134 million in mark-to-market gains from derivative transactions, net of $95 million of losses on applicable hedges. The variable annuity reinsurance foreign exchange gains for the quarter were $4 million. For the year, the $150 million of realized gains from variable annuity reinsurance comprises $563 million in mark-to-market gains from derivative transactions, net of $413 million losses on applicable hedges. The variable annuity reinsurance foreign exchange gains for the year were $45 million.

(6) Partially-owned entities are investments where we hold more than an insignificant percentage of the investee’s shares. The net income or loss is included in other income (expense).

Investment Gains (Losses) Page 18

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

	September 30			June 30			March 31			December 31			December 31
	2014			2014			2014			2013			2012
Total short-term debt (1)	$	1,851		$	1,851		$	1,901		$	1,901		$	1,401
Total long-term debt		4,057			4,057			3,808			3,807			3,360
Total debt	$	5,908		$	5,908		$	5,709		$	5,708		$	4,761
Total trust preferred securities	$	309		$	309		$	309		$	309		$	309
Total shareholders’ equity	$	30,017		$	30,325		$	29,369		$	28,825		$	27,531
Total capitalization	$	36,234		$	36,542		$	35,387		$	34,842		$	32,601
Tangible capital (2)	$	30,809		$	31,020		$	30,005		$	29,438		$	27,626
Leverage ratios
Debt/ total capitalization		16.3	%		16.2	%		16.1	%		16.4	%		14.6	%
Debt plus trust preferred securities/ total capitalization		17.2	%		17.0	%		17.0	%		17.3	%		15.6	%
Debt/ tangible capital		19.2	%		19.0	%		19.0	%		19.4	%		17.2	%
Debt plus trust preferred securities/ tangible capital		20.2	%		20.0	%		20.1	%		20.4	%		18.4	%

Note: As of September 30, 2014, there was $0.6 billion usage of credit facilities on a total commitment of $1.4 billion.

(1) Repurchase agreements in the amount of $850 million matured during the quarter, and there were new repurchase agreements in the amount of $850 million.

(2) Tangible capital is equal to total capitalization less goodwill and other intangible assets.

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
	2014			2013			2014			2013
Numerator
Operating income to common shares	$	891		$	857		$	2,493		$	2,393
Adjusted net realized gains (losses), net of income tax		(106	)		59			(195	)		367
Net income	$	785		$	916		$	2,298		$	2,760
Rollforward of Common Shares Outstanding
Shares - beginning of period		336,225,589			340,086,269			339,793,935			340,321,534
Repurchase of shares (1)		(4,349,302	)		(238,544	)		(10,143,184	)		(2,701,620	)
Shares issued (cancelled), excluding option exercises		(41,637	)		2,292			1,270,038			1,067,273
Issued for option exercises		276,907			219,955			1,190,768			1,382,785
Shares - end of period		332,111,557			340,069,972			332,111,557			340,069,972
Denominator
Weighted average shares outstanding		334,472,324			340,888,648			337,083,498			340,905,322
Effect of other dilutive securities		3,201,656			2,929,089			3,298,569			3,146,728
Adj. wtd. avg. shares outstanding and assumed conversions		337,673,980			343,817,737			340,382,067			344,052,050
Basic earnings per share
Operating income	$	2.66		$	2.51		$	7.40		$	7.02
Adjusted net realized gains (losses), net of income tax		(0.31	)		0.17			(0.58	)		1.07
Net income	$	2.35		$	2.68		$	6.82		$	8.09
Diluted earnings per share
Operating income	$	2.64		$	2.49		$	7.32		$	6.95
Adjusted net realized gains (losses), net of income tax		(0.32	)		0.17			(0.57	)		1.07
Net income	$	2.32		$	2.66		$	6.75		$	8.02

(1) For the period October 1, 2014 through October 20, 2014 we repurchased 490 thousand shares totaling $51 million, pursuant to a plan adopted under SEC Rule 10b5-1 and in accordance with the provisions of SEC Rule 10b-18.

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 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 and financial condition. However, they should not be viewed as a substitute for measures determined in accordance with generally accepted accounting principles (GAAP).

We provide financial measures such as gross premiums written, net premiums written, net premiums earned, and operating income on a constant-dollar basis. We believe it is useful to evaluate the trends in these measures exclusive of the effect of fluctuations in exchange rates between the U.S. dollar and the currencies in which our international business is transacted, as these exchange rates could fluctuate significantly between periods and distort the analysis of trends. The impact is determined by assuming constant foreign exchange rates between periods by translating prior period results using the same local currency exchange rates as the comparable current period.

Adjusted net realized gains (losses) is a non-GAAP financial measure that excludes realized gains and losses on crop derivatives. These derivatives were purchased to provide economic benefit, in a manner similar to reinsurance protection, in the event that a significant decline in commodity pricing will impact underwriting results. We view gains and losses on these derivatives as part of the results of our underwriting operations and therefore realized gains and losses from these derivatives are reclassified to Adjusted losses and loss expenses (a non-GAAP financial measure). Adjusted losses and loss expenses include gains and losses on crop derivatives. P&C loss and loss expense ratio and P&C combined ratio (both non-GAAP financial measures) include adjusted losses and loss expenses in the ratio numerator. A reconciliation of GAAP combined ratio to P&C combined ratio is provided on page 23.

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, policy 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). P&C underwriting income is a non-GAAP financial measure which includes Adjusted losses and loss expenses. Insurance – North American Agriculture underwriting income includes gains (losses) on crop derivatives. Life underwriting income includes net investment income and gains (losses) from fair value changes in separate account assets that do not qualify for separate account reporting under GAAP.

Operating income or income excluding adjusted net realized gains (losses), net of tax, is a common performance measurement for insurance companies and non-GAAP financial measure. We believe this presentation enhances the understanding of our results of operations by highlighting the underlying profitability of our insurance business. We exclude adjusted net realized gains (losses) and net realized gains (losses) included in other income (expense) related to partially owned entities because the amount of these gains (losses) is heavily influenced by, and fluctuates in part according to, the availability of market opportunities. Operating income or income excluding adjusted net realized gains (losses) should not be viewed as a substitute for net income determined in accordance with GAAP.

Other income (expense) – operating is a non-GAAP financial measure and excludes the portion of net realized gains and losses related to unconsolidated entities from other income (expense). These gains and losses are reported as Net realized gains (losses) and represent the non-operating activities of entities where we hold more than an insignificant percentage of the investee’s shares. We exclude these gains and losses from other income (expense) to enhance the understanding of our core results of operations as they are heavily influenced by, and fluctuate in part according to market conditions. A reconciliation of Consolidated Other income (expense) on a GAAP basis to Consolidated Other income (expense) - operating is provided on page 23.

P&C combined ratio excluding catastrophe losses and prior period development (PPD) is a non-GAAP financial measure. The ratio numerator includes adjusted losses and loss expenses, policy acquisition costs, and administrative expenses adjusted to exclude catastrophe losses and PPD. The ratio denominator includes net premiums earned adjusted to exclude the amount of reinstatement premiums (expensed) collected and net earned premium adjustments on loss sensitive policies. We believe that excluding the impact of catastrophe losses and PPD provides a better evaluation of our core underwriting performance and enhances the understanding of the trends in our property & casualty business that may be obscured by these items.

P&C loss and loss expense ratio excluding the impact of catastrophe losses and PPD is a non-GAAP financial measure. The loss ratio numerator includes adjusted losses and loss expenses adjusted to exclude catastrophe losses and PPD. The loss ratio denominator includes Net premiums earned adjusted to exclude the amount of reinstatement premiums (expensed) collected. In periods where there are adjustments on loss sensitive policies, these adjustments are excluded from PPD and net earned premiums when calculating this ratio. We believe that excluding the impact of catastrophe losses and PPD provides a better evaluation of our core underwriting performance and enhances the understanding of the trends in our property & casualty business that may be obscured by these items.

P&C expense ratio excluding accident and health (A&H) is a non-GAAP financial measure and excludes the impact of our A&H business from our consolidated expense ratio. The expense ratio for the A&H business is typically higher than our traditional P&C business, and we believe that this measure provides better comparison to our peer companies that may not have a significant A&H block of business.

Global P&C performance metrics are non-GAAP financial measures and comprise consolidated operating results (including corporate) and exclude the operating results of the company’s Life and Insurance – North American Agriculture segments. We believe that these measures are useful and meaningful to investors as they are used by management to assess the company’s global P&C operations which are the most economically similar. We exclude the Insurance – North American Agriculture and Life segments because the results of these businesses do not always correlate with the results of our global P&C operations.

Life net premiums written and deposits collected, excluding life reinsurance, is a non-GAAP financial measure. Deposits collected on universal life and investment contracts (life deposits) are not reflected as revenues in our consolidated statements of operations in accordance with GAAP. However, we include life deposits in presenting growth in our Life business because new life deposits are an important component of production and key to our efforts to grow our business. However, we exclude results associated with life reinsurance as there is no new life reinsurance business currently being written.

Operating return on equity (ROE) or ROE calculated using operating income is an annualized non-GAAP financial measure and is calculated as operating income divided by average shareholders’ equity, as adjusted, for the period. To annualize a quarterly rate, multiply by four. Operating ROE is a useful measure as it enhances the understanding of the return on shareholders’ equity by highlighting the underlying profitability relative to shareholders’ equity excluding the effect of unrealized gains and losses on our investments.

Operating effective tax rate is a non-GAAP financial measure. The numerator excludes tax on adjusted net realized gains (losses). The denominator excludes adjusted net realized gains (losses), before tax. We exclude adjusted net realized gains (losses) and the related tax impact because these amounts are heavily influenced by, and fluctuate in part according to, the availability of market opportunities. Operating effective tax rate should not be viewed as a substitute for effective tax rate determined in accordance with GAAP.

Tangible book value per common share is a non-GAAP financial measure and is shareholders’ equity less goodwill and other intangible assets divided by the shares outstanding. We believe that goodwill and other intangible assets are not indicative of our underlying insurance results or trends and make book value comparisons to less acquisitive peer companies less meaningful. A reconciliation of tangible book value per share is provided on page 24. Tangible book value per common share excluding 2014 acquisition is shareholders’ equity less goodwill and other intangible assets divided by the shares outstanding. The numerator adds back the goodwill and other intangible assets related to the 2014 acquisition of The Siam Commercial Samaggi Insurance PCL in order to adjust for the distortive effect of acquisitions.

Reconciliation Non-GAAP Page 21

ACE Limited Non-GAAP Financial Measures - 2 (in millions of U.S. dollars, except ratios) (Unaudited)

Regulation G - Non-GAAP Financial Measures (continued)

Operating income

Operating income is a common performance measure for insurance companies and is presented throughout this report.

The following table presents the reconciliation of Net income to Operating income:

														YTD			YTD		Full Year
	3Q-14			2Q-14			1Q-14			4Q-13		3Q-13		2014			2013		2013
Net income, as reported	$	785		$	779		$	734		$	998	$	916	$	2,298		$	2,760	$	3,758
Adjusted net realized gains (losses)		(165	)		(81	)		(102	)		154		41		(348	)		351		505
Net realized gains (losses) related to unconsolidated entities (1)		55			36			51			25		22		142			67		92
Income tax expense (benefit) on adjusted net realized gains (losses)		(4	)		1			(8	)		5		4		(11	)		51		56
Operating income	$	891		$	825		$	777		$	824	$	857	$	2,493		$	2,393	$	3,217

(1) Realized gains (losses) on partially-owned entities, which are investments where we hold more than an insignificant percentage of the investee’s shares. The net income or loss is included in other income (expense).

The following table presents the Operating income (loss) of each segment and Corporate:

																YTD			YTD			Full Year
	3Q-14			2Q-14			1Q-14			4Q-13			3Q-13			2014			2013			2013
Insurance – North American P&C	$	337		$	378		$	411		$	402		$	342		$	1,126		$	1,044		$	1,446
Insurance – Overseas General		348			282			239			279			320			869			815			1,094
Global Reinsurance		145			146			144			145			131			435			431			576
Corporate		(68	)		(72	)		(69	)		(68	)		(61	)		(209	)		(201	)		(269	)
Global P&C (including Corporate)		762			734			725			758			732			2,221			2,089			2,847
Insurance – North American Agriculture		57			19			(25	)		(20	)		50			51			83			63
Consolidated Results (including Corporate) Excluding Life Segment		819			753			700			738			782			2,272			2,172			2,910
Life		72			72			77			86			75			221			221			307
Consolidated operating income	$	891		$	825		$	777		$	824		$	857		$	2,493		$	2,393		$	3,217

Operating ROE

The following table presents the reconciliation of ROE to Operating ROE:

							YTD			YTD			Full Year
	3Q-14			3Q-13			2014			2013			2013
Net income	$	785		$	916		$	2,298		$	2,760		$	3,758
Operating income	$	891		$	857		$	2,493		$	2,393		$	3,217
Equity - beginning of period, as reported	$	30,325		$	27,295		$	28,825		$	27,531		$	27,531
Less: unrealized gains (losses) on investments, net of deferred tax		2,047			1,318			1,174			2,633			2,633
Equity - beginning of period, as adjusted	$	28,278		$	25,977		$	27,651		$	24,898		$	24,898
Equity - end of period, as reported	$	30,017		$	28,218		$	30,017		$	28,218		$	28,825
Less: unrealized gains (losses) on investments, net of deferred tax		1,757			1,319			1,757			1,319			1,174
Equity - end of period, as adjusted	$	28,260		$	26,899		$	28,260		$	26,899		$	27,651
Average equity, as reported	$	30,171		$	27,757		$	29,421		$	27,875		$	28,178
Average equity, as adjusted	$	28,269		$	26,438		$	27,956		$	25,899		$	26,275
Operating ROE		12.6	%		13.0	%		11.9	%		12.3	%		12.2	%
ROE		10.4	%		13.2	%		10.4	%		13.2	%		13.3	%

Reconciliation Non-GAAP 2 Page 22

ACE Limited Non-GAAP Financial Measures - 3 (in millions of U.S. dollars, except ratios) (Unaudited)

Regulation G - Non-GAAP Financial Measures (continued)

Operating effective tax rate

The following table presents the reconciliation of effective tax rate to the operating effective tax rate:

																YTD			YTD			Full Year
	3Q-14			2Q-14			1Q-14			4Q-13			3Q-13			2014			2013			2013
Tax expense, as reported	$	176		$	133		$	93		$	88		$	155		$	402		$	392		$	480
Tax expense (benefit) on adjusted net realized gains (losses)		(4	)		1			(8	)		5			4			(11	)		51			56
Tax expense, adjusted	$	180		$	132		$	101		$	83		$	151		$	413		$	341		$	424
Income before tax, as reported	$	961		$	912		$	827		$	1,086		$	1,071		$	2,700		$	3,152		$	4,238
Less: adjusted realized gains (losses)		(165	)		(81	)		(102	)		154			41			(348	)		351			505
Less: realized gains (losses) related to unconsolidated entities		55			36			51			25			22			142			67			92
Operating income before tax	$	1,071		$	957		$	878		$	907		$	1,008		$	2,906		$	2,734		$	3,641
Effective tax rate		18.3	%		14.6	%		11.3	%		8.1	%		14.4	%		14.9	%		12.4	%		11.3	%
Adjustment for tax impact of adjusted net realized gains (losses)		-1.4	%		-0.9	%		0.2	%		1.1	%		0.5	%		-0.7	%		0.0	%		0.3	%
Operating effective tax rate		16.9	%		13.7	%		11.5	%		9.2	%		14.9	%		14.2	%		12.4	%		11.6	%

Other income (expense) - operating

The following table presents the reconciliation of Consolidated Other income (expense) on a GAAP basis to Consolidated Other income (expense) - operating. Other income (expense) – operating is a non-GAAP financial measure which excludes gains (losses) from fair value changes in separate account assets that do not qualify for separate account reporting under GAAP and the portion of net realized gains and losses related to unconsolidated entities. Gains (losses) from fair value changes in separate account assets are reclassified from Other income (expense) for purposes of presenting Life underwriting income, as the offsetting movement in the separate account liabilities is included in Policy benefits. Net realized gains (losses) related to unconsolidated entities is excluded from operating income in order to enhance the understanding of our core results of operations as they are heavily influenced by, and fluctuate in part according to market conditions.

																YTD			YTD			Full Year
	3Q-14			2Q-14			1Q-14			4Q-13			3Q-13			2014			2013			2013
Consolidated GAAP Other income (expense):
Consolidated excluding Life segment	$	22		$	12		$	30		$	4		$	(5	)	$	64		$	(22	)	$	(18	)
Life segment		(3	)		13			(13	)		3			10			(3	)		—			3
Consolidated		19			25			17			7			5			61			(22	)		(15	)
Less: Gains (losses) from fair value changes in separate account assets
Consolidated excluding Life segment		—			—			—			—			—			—			—			—
Life segment		(6	)		17			(6	)		9			14			5			7			16
Consolidated		(6	)		17			(6	)		9			14			5			7			16
Less: Net realized gains (losses) related to unconsolidated entities
Consolidated excluding Life segment		51			38			53			27			24			142			60			87
Life segment		4			(2	)		(2	)		(2	)		(2	)		—			7			5
Consolidated		55			36			51			25			22			142			67			92
Consolidated Other income (expense) - operating:
Consolidated excluding Life segment		(29	)		(26	)		(23	)		(23	)		(29	)		(78	)		(82	)		(105	)
Life segment		(1	)		(2	)		(5	)		(4	)		(2	)		(8	)		(14	)		(18	)
Consolidated	$	(30	)	$	(28	)	$	(28	)	$	(27	)	$	(31	)	$	(86	)	$	(96	)	$	(123	)

P&C combined ratio

The following table presents the reconciliation of GAAP combined ratio to P&C combined ratio. The P&C combined ratio includes the impact of realized gains and losses on crop derivatives. These derivatives were purchased to provide economic benefit, in a manner similar to reinsurance protection, in the event that a significant decline in commodity pricing will impact underwriting results. We view gains and losses on these derivatives as part of the results of our underwriting operations.

																YTD			YTD			Full Year
	3Q-14			2Q-14			1Q-14			4Q-13			3Q-13			2014			2013			2013
GAAP combined ratio		87.3	%		87.7	%		88.8	%		89.3	%		86.5	%		87.9	%		87.5	%		88.0	%
Impact of gains and losses on crop derivatives		-1.0	%		-0.2	%		0.0	%		0.0	%		0.0	%		-0.4	%		0.0	%		0.0	%
P&C combined ratio		86.3	%		87.5	%		88.8	%		89.3	%		86.5	%		87.5	%		87.5	%		88.0	%

Reconciliation Non-GAAP 3 Page 23

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

Reconciliation of Book Value per Common Share

	September 30			June 30			March 31			December 31			September 30
	2014			2014			2014			2013			2013
Shareholders’ equity	$	30,017		$	30,325		$	29,369		$	28,825		$	28,218
Less: goodwill and other intangible assets		5,425			5,522			5,382			5,404			5,465
Numerator for tangible book value per share	$	24,592		$	24,803		$	23,987		$	23,421		$	22,753
Book value - % change over prior quarter (1)		-1.0	%		3.3	%		1.9	%		2.2	%		3.4	%
Tangible book value - % change over prior quarter (1)		-0.8	%		3.4	%		2.4	%		2.9	%		3.9	%
Denominator		332,111,557			336,225,589			337,974,644			339,793,935			340,069,972
Book value per common share	$	90.38		$	90.19		$	86.90		$	84.83		$	82.98
Tangible book value per common share	$	74.05		$	73.77		$	70.97		$	68.93		$	66.91
Reconciliation of Book Value
Shareholders’ equity, beginning of quarter	$	30,325		$	29,369		$	28,825		$	28,218		$	27,295
Operating income		891			825			777			824			857
Adjusted net realized gains (losses), net of tax		(106	)		(46	)		(43	)		174			59
Net unrealized gains (losses), net of tax		(290	)		453			420			(145	)		1
Repurchase of shares		(450	)		(237	)		(332	)		(57	)		(21	)
Dividend declared on common shares (2)		(223	)		(223	)		(256	)		(174	)		(176	)
Cumulative translation, net of tax		(202	)		119			(41	)		(66	)		114
Pension liability		5			(3	)		(5	)		(11	)		(1	)
Other (3)		67			68			24			62			90
	$	30,017		$	30,325		$	29,369		$	28,825		$	28,218

(1) At September 30, 2014, book value increased 4.1% and tangible book value increased 5.0% from December 31, 2013.

(2) The March 31, 2014 amount includes a $0.12 per share increase related to the Q4 2013 dividend installment approved by our shareholders on January 10, 2014.

(3) Other primarily includes proceeds from exercise of stock options and stock compensation.

Reconciliation Book Value Page 24

ACE Limited Glossary

ACE Limited Consolidated comprises all segments including Corporate.

Operating return on equity (ROE) or ROE calculated using income excluding adjusted net realized gains (losses): Operating income or income excluding adjusted net realized gains (losses), net of tax, divided by average shareholders’ equity for the period excluding unrealized gains (losses) on investments, net of tax. To annualize a quarterly rate multiply by four.

Book value per common share: 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.

Operating effective tax rate: Income tax expense excluding tax expense (benefit) on adjusted net realized gains (losses) divided by income excluding adjusted net realized gains (losses) before tax.

Life underwriting income: Net premiums earned and net investment income less losses and loss expenses, policy benefits, acquisition costs, and administrative expenses. In addition, Life underwriting income includes gains/losses from fair value changes in separate account assets that do not qualify for separate account reporting under GAAP.

Tangible book value per common share: Shareholders’ equity less goodwill and other intangible assets divided by the shares outstanding.

Average market yield of fixed maturities: Weighted average yield to maturity of our fixed income portfolio based on the market prices of the holdings as of that date.

Average yield on invested assets: Net investment income divided by average cost of fixed maturities and other investments, and average market value of equity securities.

Tangible capital: Total capitalization less goodwill and other intangible assets.

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

NM: Not meaningful.

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