Chubb Limited (CB) 8-K Results of Operations and Financial Condition

Exhibit 99.2

Investor Contact Helen M. Wilson Phone: (441) 299-9283 Fax: (441) 292-8675 email: investorrelations@ace.bm	This report is for informational purposes only. It should be read in conjuction 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 the Company’s current views with respect to future events and financial performance and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements involve risks and uncertainties which may cause actual results to differ materially from those set forth in these statements. For example, the Company’s forward-looking statements, such as statements concerning exposures, reserves and recoverables, could be affected by the frequency of unpredictable catastrophic events, actual loss experience, uncertainties in the reserving or settlement process, new theories of liability, judicial, legislative, regulatory and other governmental developments, litigation tactics and developments, internal investigation developments, the amount and timing of reinsurance receivable and credit developments among reinsurers. The Company’s forward-looking statements could also be affected by competition, pricing and policy term trends, the levels of new and renewal business achieved, market acceptance, changes in demand, actual market developments, rating agency action, possible terrorism or the outbreak and effects of war. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the dates on which they are made. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

ACE Limited Financial Supplement Table of Contents

		Page
I.	Financial Highlights
	- Consolidated Financial Highlights	1
II.	Consolidated Results
	- Consolidated Results - Consecutive Quarters	2-4
	- Summary Consolidated Balance Sheets	5
	- Consolidated Premiums by Line of Business	6
	- Consolidating Statement of Operations	7-8
III.	Segment Results
	- Insurance-North American	9-10
	- Insurance-Overseas General	11-12
	- Global Reinsurance	13-15
	- Financial Services	16-17
IV.	Balance Sheet Details
	- Loss Reserve Rollforward	18
	- Reinsurance Recoverable Analysis	19-22
	- Investment Portfolio	23
	- Realized and Unrealized Gains (Losses)	24
	- Capital Structure	25
	- Computation of Basic and Diluted Earnings Per Share	26
V.	Other Disclosures
	- Non-GAAP Financial Measures	27
	- Diluted Book Value per Ordinary Share	28
	- Comprehensive Income	29
	- Glossary	30

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

	Three months ended June 30						% Change 2Q-05 vs.		Six months ended June 30						% Change YTD-05 vs.
	2005			2004			2Q-04		2005			2004			YTD-04
				(Restated)								(Restated)
Gross premiums written	$	4,213		$	4,042		4	%	$	8,756		$	8,460		3	%
Net premiums written	$	2,909		$	2,861		2	%	$	6,275		$	6,081		3	%
Net premiums earned	$	2,921		$	2,782		5	%	$	5,798		$	5,370		8	%
Net investment income	$	305		$	243		26	%	$	590		$	491		20	%
Net income	$	467		$	423		10	%	$	904		$	877		3	%
Income excluding net realized gains (losses)(1)	$	443		$	391		13	%	$	898		$	809		11	%
Comprehensive income	$	572		$	(137	)	NM		$	721		$	454		59	%
Operating cash flow	$	1,147		$	1,097		5	%	$	2,357		$	2,269		4	%
Combined ratio
Loss and loss expense ratio		64.4	%		63.2	%				63.9	%		61.8	%
Underwriting and administrative expense ratio		25.8	%		25.5	%				25.6	%		26.0	%
Combined ratio		90.2	%		88.7	%				89.5	%		87.8	%
Annualized ROE*		17.9	%		17.3	%				18.2	%		18.5	%
Annualized ROE, excluding FAS 115*		18.7	%		18.4	%				19.4	%		19.6	%
Diluted earnings per share
Income excluding net realized gains (losses)(1)	$	1.50		$	1.33		14	%	$	3.04		$	2.76		10	%
Net income	$	1.58		$	1.44		10	%	$	3.06		$	3.00		2	%
Diluted book value per ordinary share	$	34.28		$	30.41		13	%	$	34.28		$	30.41		13	%
Diluted tangible book value per ordinary share	$	25.39		$	21.27		19	%	$	25.39		$	21.27		19	%
Weighted average diluted ordinary shares outstanding		288.5			285.4					288.2			285.0
Debt/ total capitalization		15.5	%		19.8	%				15.5	%		19.8	%

(1) See page 27 Non-GAAP Financial Measures.

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

Financial Highlights Page 1

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

ACE Limited Consolidated

	2Q-05			1Q-05			4Q-04			3Q-04			2Q-04			YTD 2005			YTD 2004			Full Year 2004
				(Restated)			(Restated)			(Restated)			(Restated)						(Restated)			(Restated)
Property and Casualty(1)
Gross premiums written	$	4,141		$	4,322		$	3,562		$	3,860		$	3,971		$	8,463		$	8,128		$	15,550
Net premiums written		2,837			3,147			2,559			2,647			2,793			5,984			5,754			10,960
Net premiums earned		2,772			2,729			2,730			2,688			2,594			5,501			4,952			10,370
Losses and loss expenses		1,774			1,706			2,108			2,117			1,636			3,480			3,080			7,305
Policy acquisition costs		424			382			405			385			381			806			730			1,520
Administrative expenses		308			330			335			301			294			638			591			1,222
P& C underwriting income (loss)	$	266		$	311		$	(118	)	$	(115	)	$	283		$	577		$	551		$	323
Financial Services underwriting income (loss)		14			1			(3	)		(11	)		26			15			84			70
Life underwriting income (loss) excluding investment income		15			17			11			5			3			32			6			22
Net investment income		305			285			282			246			243			590			491			1,019
Net realized gains (losses)		32			(14	)		130			(32	)		42			18			99			197
Interest expense		43			42			43			50			46			85			90			183
Other (income) expense		(6	)		(5	)		1			(14	)		(1	)		(11	)		16			3
Income tax expense (benefit)		128			126			(28	)		61			127			254			251			286
Net income (loss)	$	467		$	437		$	286		$	(4	)	$	423		$	904		$	874		$	1,159
Net realized gains (losses)		32			(14	)		130			(32	)		42			18			99			197
Tax expense on net realized gains (losses)		8			4			12			1			10			12			31			44
Income excluding net realized gains (losses)(2)	$	443		$	455		$	168		$	29		$	391		$	898		$	806		$	1,006
% Change versus prior year period(1)
Net premiums written		2	%		6	%		13	%		23	%		23	%		4	%		24	%		21	%
Net premiums earned		7	%		16	%		17	%		24	%		23	%		11	%		25	%		23	%
Other ratios
Net premiums written/gross premiums written		69	%		73	%		72	%		69	%		70	%		71	%		71	%		70	%
Effective tax rate on income excluding net realized gains (losses)		21	%		21	%		-34	%		65	%		23	%		21	%		21	%		19	%

(1) Property and casualty excluding financial services is presented to allow for comparison and analysis with earnings guidance.This is a Non-GAAP measure. See pages 7 and 8 for a reconciliation to GAAP.

(2) See page 27 Non-GAAP Financial Measures.

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

Consolidated Results Page 2

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

ACE Limited Consolidated

	2Q-05			1Q-05			4Q-04			3Q-04			2Q-04			YTD 2005			YTD 2004			Full Year 2004
				(Restated)			(Restated)			(Restated)			(Restated)						(Restated)			(Restated)
Combined ratio
Loss and loss expense ratio		64.4	%		63.5	%		78.1	%		79.8	%		63.2	%		63.9	%		61.8	%		70.6	%
Policy acquisition cost ratio		14.8	%		13.6	%		14.4	%		13.8	%		14.3	%		14.2	%		14.2	%		14.2	%
Administrative expense ratio		11.0	%		11.9	%		11.9	%		10.9	%		11.2	%		11.4	%		11.8	%		11.6	%
Combined ratio		90.2	%		89.0	%		104.4	%		104.5	%		88.7	%		89.5	%		87.8	%		96.4	%
Property and Casualty(1)
	2Q-05			1Q-05			4Q-04			3Q-04			2Q-04			YTD 2005			YTD 2004			Full Year 2004
				(Restated)			(Restated)			(Restated)			(Restated)						(Restated)			(Restated)
Combined ratio
Loss and loss expense ratio		64.0	%		62.5	%		77.2	%		78.7	%		63.1	%		63.3	%		62.2	%		70.4	%
Policy acquisition cost ratio		15.3	%		14.0	%		14.9	%		14.3	%		14.7	%		14.6	%		14.7	%		14.7	%
Administrative expense ratio		11.1	%		12.1	%(2)		12.2	%		11.2	%		11.3	%		11.6	%		11.8	%		11.8	%
Combined ratio		90.4	%		88.6	%		104.3	%		104.2	%		89.1	%		89.5	%		88.7	%		96.9	%
Large losses and other items
Asbestos, environmental and other run-off losses	$	—		$	—		$	465		$	—		$	—		$	—		$	—		$	465
Catastrophe and other large losses	$	—		$	3		$	31		$	457		$	—		$	3		$	—		$	488
Prior period development(3)	$	27		$	29		$	109		$	12		$	25		$	56		$	19		$	140

(1) Property and casualty excluding financial services is presented to allow for comparison and analysis with earnings guidance.

(2) Includes $30M of legal expenses related to the investigations.

(3) See Financial Services schedule for prior period development related to that segment.

Consolidated Results 2 Page 3

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

ACE Limited Consolidated

	1Q-04			4Q-03			3Q-03			2Q-03			1Q-03			Full Year 2003			Full Year 2002
	(Restated)			(Restated)			(Restated)			(Restated)			(Restated)			(Restated)			(Restated)
Property and Casualty(1)
Gross premiums written	$	4,157		$	3,331		$	3,296		$	3,242		$	3,533		$	13,402		$	11,116
Net premiums written		2,961			2,273			2,153			2,275			2,354			9,055			6,536
Net premiums earned		2,358			2,342			2,162			2,113			1,839			8,456			5,652
Losses and loss expenses		1,444			1,431			1,387			1,337			1,129			5,284			4,061
Policy acquisition costs		349			357			321			314			281			1,273			872
Administrative expenses		292			313			272			278			239			1,102			856
P& C underwriting income (loss)	$	273		$	241		$	182		$	184		$	190		$	797		$	(137	)
Financial Services underwriting income (loss)		58			5			13			19			21			58			53
Life underwriting income (loss) excluding investment income		3			(2	)		(4	)		(5	)		(5	)		(16	)		(22	)
Net investment income		248			242			223			224			211			900			812
Net realized gains (losses)		57			127			56			116			(40	)		259			(489	)
Interest expense		44			45			44			43			45			177			193
Other (income) expense		17			21			4			1			8			34			36
Income tax expense (benefit)		124			87			68			97			59			311			(112	)
Net income (loss)	$	454		$	460		$	354		$	397		$	265		$	1,476		$	100
Net realized gains (losses)		57			127			56			116			(40	)		259			(489	)
Tax expense on net realized gains (losses)		21			12			6			22			(8	)		32			(72	)
Income excluding net realized gains (losses)(2)	$	418		$	345		$	304		$	303		$	297		$	1,249		$	517
Combined ratio
Loss and loss expense ratio		60.3	%		66.0	%		65.0	%		64.2	%		62.7	%		64.6	%		73.7	%
Policy acquisition cost ratio		14.2	%		13.2	%		14.3	%		14.2	%		14.4	%		14.0	%		14.0	%
Administrative expense ratio		12.5	%		12.0	%		12.4	%		12.8	%		12.6	%		12.4	%		13.5	%
Combined ratio		87.0	%		91.2	%		91.7	%		91.2	%		89.7	%		91.0	%		101.2	%
Property and Casualty (1)
Combined ratio
Loss and loss expense ratio		61.2	%		61.1	%		64.2	%		63.3	%		61.4	%		62.5	%		71.9	%
Policy acquisition cost ratio		14.8	%		15.2	%		14.9	%		14.9	%		15.3	%		15.1	%		15.4	%
Administrative expense ratio		12.4	%		13.4	%		12.6	%		13.1	%		13.0	%		13.0	%		15.1	%
Combined ratio		88.4	%		89.7	%		91.7	%		91.3	%		89.7	%		90.6	%		102.4	%

(1) Property and casualty excluding financial services is presented to allow for comparison and analysis with earnings guidance.

(2) See page 27 Non-GAAP Financial Measures.

Consolidated Results 3 Page 4

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

	June 30 2005		March 31 2005		December 31 2004
	(Unaudited)		(Unaudited)		(Unaudited)
			(Restated)		(Restated)
Assets
Fixed maturities available for sale, at fair value	$	21,217	$	20,418	$	22,976
Fixed maturities held to maturity, at amortized cost		3,151		3,211		—
Equity securities, at fair value		1,380		1,351		1,265
Short-term investments		2,521		2,198		2,201
Other investments		628		622		606
Total investments		28,897		27,800		27,048
Cash		651		574		507
Securities lending collateral		958		1,255		1,059
Insurance and reinsurance balances receivable		3,728		3,695		3,255
Reinsurance recoverable		14,432		14,273		14,887
Deferred policy acquisition costs		990		999		944
Prepaid reinsurance premiums		1,434		1,427		1,355
Goodwill		2,699		2,691		2,695
Deferred tax assets		1,134		1,178		1,173
Investments in partially owned insurance companies		832		816		796
Other assets		2,365		2,297		2,534
Total assets	$	58,120	$	57,005	$	56,253
Liabilities
Unpaid losses and loss expenses	$	32,101	$	31,426	$	31,483
Unearned premiums		6,457		6,527		5,983
Future policy benefits for life and annuity contracts		517		507		509
Insurance and reinsurance balances payable		2,438		2,290		2,337
Deposit liabilities		347		302		343
Securities lending payable		958		1,255		1,059
Payable for investments purchased		785		630		579
Accounts payable, accrued expenses and other liabilities		1,613		1,694		1,710
Short-term debt		147		147		146
Long-term debt		1,849		1,849		1,849
Trust preferred securities		412		412		412
Total liabilities		47,624		47,039		46,410
Shareholders’ equity
Total shareholders’ equity, excl. AOCI		9,947		9,522		9,111
Accumulated other comprehensive income (AOCI)		549		444		732
Total shareholders’ equity		10,496		9,966		9,843
Total liabilities and shareholders’ equity	$	58,120	$	57,005	$	56,253
Diluted book value per ordinary share(1)	$	34.28	$	32.63	$	32.50
Diluted tangible book value per ordinary share(1)	$	25.39	$	23.56	$	23.38

(1) See page 27 Non-GAAP Financial Measures.

Consol Bal Sheet Page 5

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

ACE Limited Consolidated

	2Q-05		% of Total Consolidated		2Q-04		% of Total Consolidated		% Change 2Q-05 vs. 2Q-04		YTD 2005		% of Total Consolidated		YTD 2004		% of Total Consolidated		% Change YTD-05 vs. YTD-04
					(Restated)										(Restated)
Net premiums written
Property and all other	$	859	29	%	$	995	35	%	-14	%	$	1,911	30	%	$	2,004	33	%	-5	%
Casualty		1,655	57	%		1,500	52	%	10	%		3,420	55	%		3,169	52	%	8	%
Personal accident		323	11	%		298	10	%	8	%		653	10	%		581	9	%	12	%
Total P&C		2,837	97	%		2,793	97	%	2	%		5,984	95	%		5,754	94	%	4	%
Global Re - life		57	2	%		55	2	%	4	%		115	2	%		106	2	%	8	%
Financial Services		15	1	%		13	1	%	15	%		176	3	%		221	4	%	-20	%
Total Consolidated	$	2,909	100	%	$	2,861	100	%	2	%	$	6,275	100	%	$	6,081	100	%	3	%
Net premiums earned
Property and all other	$	871	30	%	$	885	32	%	-2	%	$	1,745	30	%	$	1,655	31	%	5	%
Casualty		1,588	54	%		1,418	51	%	12	%		3,144	54	%		2,750	51	%	14	%
Personal accident		313	11	%		291	10	%	8	%		612	11	%		546	10	%	12	%
Total P&C		2,772	95	%		2,594	93	%	7	%		5,501	95	%		4,951	92	%	11	%
Global Re - life		57	2	%		54	2	%	6	%		115	2	%		105	2	%	10	%
Financial Services		92	3	%		134	5	%	-31	%		182	3	%		313	6	%	-42	%
Total Consolidated	$	2,921	100	%	$	2,782	100	%	5	%	$	5,798	100	%	$	5,369	100	%	8	%

Line of Business Page 6

ACE Limited Consolidating Statement of Operations Three months ended June 30, 2005 and 2004 (in millions of U.S. dollars) (Unaudited)

	Insurance - North American		Insurance - Overseas General		Global Reinsurance		Corporate & Other			Consolidated P&C		Financial Services			ACE Consolidated
June 30, 2005
Gross premiums written	$	2,344	$	1,428	$	369	$	—		$	4,141	$	15		$	4,156
Net premiums written		1,412		1,062		363		—			2,837		15			2,852
Net premiums earned		1,319		1,081		372		—			2,772		92			2,864
Losses and loss expenses		948		610		206		10			1,774		70			1,844
Policy acquisition costs		130		217		77		—			424		1			425
Administrative expenses		111		142		16		39			308		7			315
Underwriting income (loss)		130		112		73		(49	)		266		14			280
Life underwriting income (includes investment income)		—		—��		25		—			25		—			25
Net investment income - property and casualty		142		80		40		3			265		30			295
Net realized gains (losses)		14		34		33		(52	)		29		3			32
Interest expense		5		—		—		38			43		—			43
Other (income) expense		1		5		1		—			7		(13	)		(6	)
Income tax expense (benefit)		81		48		9		(17	)		121		7			128
Net income (loss)		199		173		161		(119	)		414		53			467
Net realized gains (losses)		14		34		33		(52	)		29		3			32
Tax expense (benefit) on net realized gains (losses)		2		7		—		—			9		(1	)		8
Income (loss) excluding net realized gains (losses)(1)	$	187	$	146	$	128	$	(67	)	$	394	$	49		$	443
June 30, 2004 (Restated)
Gross premiums written	$	2,102	$	1,501	$	368	$	—		$	3,971	$	15		$	3,986
Net premiums written		1,330		1,098		365		—			2,793		13			2,806
Net premiums earned		1,178		1,069		347		—			2,594		134			2,728
Losses and loss expenses		836		627		173		—			1,636		90			1,726
Policy acquisition costs		112		195		74		—			381		9			390
Administrative expenses		110		139		16		29			294		9			303
Underwriting income (loss)		120		108		84		(29	)		283		26			309
Life underwriting income (includes investment income)		—		—		11		—			11		—			11
Net investment income - property and casualty		110		58		29		2			199		36			235
Net realized gains (losses)		30		3		12		29			74		(32	)		42
Interest expense		5		—		—		40			45		1			46
Other (income) expense		3		4		—		(1	)		6		(7	)		(1	)
Income tax expense (benefit)		71		60		1		(14	)		118		11			129
Net income (loss)		181		105		135		(23	)		398		25			423
Net realized gains (losses)		30		3		12		29			74		(32	)		42
Tax expense (benefit) on net realized gains (losses)		8		1		—		—			9		1			10
Income (loss) excluding net realized gains (losses) (1)	$	159	$	103	$	123	$	(52	)	$	333	$	58		$	391

(1) See page 27 Non-GAAP Financial Measures.

Segment 2005 Qtr Page 7

ACE Limited Consolidating Statement of Operations Six months ended June 30, 2005 and 2004 (in millions of U.S. dollars) (Unaudited)

	Insurance - North American			Insurance - Overseas General		Global Reinsurance		Corporate & Other			Consolidated P&C		Financial Services			ACE Consolidated
June 30, 2005
Gross premiums written	$	4,494		$	3,064	$	905	$	—		$	8,463	$	178		$	8,641
Net premiums written		2,837			2,257		890		—			5,984		176			6,160
Net premiums earned		2,604			2,169		728		—			5,501		182			5,683
Losses and loss expenses		1,840			1,220		411		9			3,480		153			3,633
Policy acquisition costs		247			409		150		—			806		3			809
Administrative expenses		222			290		31		95			638		11			649
Underwriting income (loss)		295			250		136		(104	)		577		15			592
Life underwriting income (includes investment income)		—			—		51		—			51		—			51
Net investment income - property and casualty		273			154		79		3			509		62			571
Net realized gains (losses)		3			52		11		(57	)		9		9			18
Interest expense		10			—		1		74			85		—			85
Other (income) expense		1			11		2		—			14		(25	)		(11	)
Income tax expense (benefit)		161			100		18		(38	)		241		13			254
Net income (loss)		399			345		256		(194	)		806		98			904
Net realized gains (losses)		3			52		11		(57	)		9		9			18
Tax expense (benefit) on net realized gains (losses)		(1	)		12		—		—			11		1			12
Income (loss) excluding net realized gains (losses)(1)	$	395		$	305	$	245	$	(137	)	$	808	$	90		$	898
June 30, 2004 (Restated)
Gross premiums written	$	4,007		$	3,174	$	947	$	—		$	8,128	$	223		$	8,351
Net premiums written		2,541			2,276		937		—			5,754		221			5,975
Net premiums earned		2,185			2,088		679		—			4,952		313			5,265
Losses and loss expenses		1,534			1,213		333		—			3,080		175			3,255
Policy acquisition costs		212			380		138		—			730		20			750
Administrative expenses		213			277		34		62			586		34			620
Underwriting income (loss)		226			218		174		(62	)		556		84			640
Life underwriting income (includes investment income)		—			—		22		—			22		—			22
Net investment income - property and casualty		220			108		56		2			386		89			475
Net realized gains (losses)		82			27		2		15			126		(27	)		99
Interest expense		10			—		—		77			87		3			90
Other (income) expense		6			7		—		(1	)		12		4			16
Income tax expense (benefit)		134			111		4		(27	)		227		31			253
Net income (loss)		378			235		250		(94	)		769		108			877
Net realized gains (losses)		82			27		2		15			126		(27	)		99
Tax expense (benefit) on net realized gains (losses)		15			8		—		—			23		8			31
Income (loss) excluding net realized gains (losses)(1)	$	311		$	216	$	248	$	(109	)	$	666	$	143		$	809

(1) See page 27 Non-GAAP Financial Measures.

Segment 2005 YTD Page 8

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

Insurance - North American

	2Q-05			1Q-05			4Q-04			3Q-04			2Q-04			YTD 2005			YTD 2004			Full Year 2004
				(Restated)			(Restated)			(Restated)			(Restated)						(Restated)			(Restated)
Gross premiums written	$	2,344		$	2,150		$	1,885		$	2,234		$	2,102		$	4,494		$	4,007		$	8,126
Net premiums written		1,412			1,425			1,194			1,366			1,330			2,837			2,541			5,101
Net premiums earned		1,319			1,285			1,243			1,251			1,178			2,604			2,185			4,679
Losses and loss expenses		948			892			1,354			1,010			836			1,840			1,534			3,898
Policy acquisition costs		130			117			114			121			112			247			212			447
Administrative expenses		111			111			128			110			110			222			213			451
Underwriting income (loss)		130			165			(353	)		10			120			295			226			(117	)
Net investment income		142			131			132			123			110			273			220			475
Net realized gains (losses)		14			(11	)		35			9			30			3			82			126
Interest expense		5			5			5			6			5			10			10			21
Other (income) expense		1			—			2			(3	)		3			1			6			5
Income tax expense (benefit)		81			80			(96	)		44			71			161			134			82
Net income (loss)		199			200			(97	)		95			181			399			378			376
Net realized gains (losses)		14			(11	)		35			9			30			3			82			126
Tax expense on net realized gains (losses)		2			(3	)		5			2			8			(1	)		15			22
Income excluding net realized gains (losses)(1)	$	187		$	208		$	(127	)	$	88		$	159		$	395		$	311		$	272
Combined ratio			��
Loss and loss expense ratio		71.9	%		69.4	%		109.0	%		80.7	%		71.0	%		70.7	%		70.2	%		83.3	%
Policy acquisition cost ratio		9.8	%		9.1	%		9.1	%		9.7	%		9.5	%		9.5	%		9.7	%		9.6	%
Administrative expense ratio		8.4	%		8.6	%		10.3	%		8.7	%		9.4	%		8.5	%		9.8	%		9.6	%
Combined ratio		90.1	%		87.1	%		128.4	%		99.1	%		89.9	%		88.7	%		89.7	%		102.5	%
Large losses and other items (before tax)
Asbestos, environmental and other run-off losses	$	—		$	—		$	459		$	—		$	—		$	—		$	—		$	459
Catastrophe losses (before tax)	$	—		$	—		$	—		$	126		$	—		$	—		$	—		$	126
Prior period development	$	51		$	22		$	96		$	42		$	42		$	73		$	57		$	195
% Change versus prior year period
Net premiums written		6	%		18	%		12	%		28	%		36	%		12	%		33	%		26	%
Net premiums earned		12	%		28	%		23	%		26	%		27	%		19	%		30	%		27	%
Other ratios
Net premiums written/gross premiums written		60	%		66	%		63	%		61	%		63	%		63	%		63	%		63	%

(1) See page 27 Non-GAAP Financial Measures.

Insurance-North American Page 9

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

Insurance - North American

	1Q-04			4Q-03			3Q-03			2Q-03			1Q-03			Full Year 2003			Full Year 2002
	(Restated)			(Restated)			(Restated)			(Restated)			(Restated)			(Restated)			(Restated)
Gross premiums written	$	1,905		$	1,764		$	1,819		$	1,648		$	1,664		$	6,895		$	6,115
Net premiums written		1,211			1,070			1,066			979			935			4,050			2,921
Net premiums earned		1,007			1,013			991			931			754			3,689			2,477
Losses and loss expenses		698			648			726			644			523			2,541			2,222
Policy acquisition costs		100			102			95			100			83			380			216
Administrative expenses		103			109			103			103			87			402			342
Underwriting income (loss)		106			154			67			84			61			366			(303	)
Net investment income		110			105			102			103			105			415			409
Net realized gains (losses)		52			24			7			34			(18	)		47			(199	)
Interest expense		5			4			6			5			6			21			22
Other (income) expense		3			7			1			—			6			14			(1	)
Income tax expense (benefit)		63			70			43			47			34			194			(51	)
Net income (loss)		197			202			126			169			102			599			(63	)
Net realized gains (losses)		52			24			7			34			(18	)		47			(199	)
Tax expense on net realized gains (losses)		7			—			—			3			(3	)		—			(43	)
Income excluding net realized gains (losses)(1)	$	152		$	178		$	119		$	138		$	117		$	552		$	93
Combined ratio
Loss and loss expense ratio		69.3	%		64.0	%		73.2	%		69.3	%		69.3	%		68.9	%		89.7	%
Policy acquisition cost ratio		10.0	%		10.0	%		9.6	%		10.8	%		11.0	%		10.3	%		8.7	%
Administrative expense ratio		10.3	%		10.8	%		10.4	%		11.0	%		11.6	%		10.9	%		13.8	%
Combined ratio		89.6	%		84.8	%		93.2	%		91.1	%		91.9	%		90.1	%		112.2	%

(1) See page 27 Non-GAAP Financial Measures.

Insurance-North American 2 Page 10

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

Insurance - Overseas General

	2Q-05			1Q-05			4Q-04			3Q-04			2Q-04			YTD 2005			YTD 2004			Full Year 2004
				(Restated)			(Restated)			(Restated)			(Restated)						(Restated)			(Restated)
Gross premiums written	$	1,428		$	1,636		$	1,391		$	1,292		$	1,501		$	3,064		$	3,174		$	5,857
Net premiums written		1,062			1,195			1,085			980			1,098			2,257			2,276			4,341
Net premiums earned		1,081			1,088			1,128			1,086			1,069			2,169			2,088			4,302
Losses and loss expenses		610			610			544			652			627			1,220			1,213			2,409
Policy acquisition costs		217			192			223			199			195			409			380			802
Administrative expenses		142			148			135			139			139			290			277			551
Underwriting income	$	112		$	138		$	226		$	96		$	108		$	250		$	218		$	540
Net investment income		80			74			65			51			58			154			108			224
Net realized gains (losses)		34			18			18			2			3			52			27			47
Interest expense		—			—			—			—			—			—			—			—
Other (income) expense		5			6			15			3			4			11			7			25
Income tax expense		48			52			86			38			60			100			111			235
Net income	$	173		$	172		$	208		$	108		$	105		$	345		$	235		$	551
Net realized gains (losses)		34			18			18			2			3			52			27			47
Tax expense on net realized gains (losses)		7			5			5			1			1			12			8			14
Income excluding net realized gains (losses)(1)	$	146		$	159		$	195		$	107		$	103		$	305		$	216		$	518
Combined ratio
Loss and loss expense ratio		56.4	%		56.1	%		48.2	%		60.0	%		58.6	%		56.2	%		58.1	%		56.0	%
Policy acquisition cost ratio		20.1	%		17.7	%		19.9	%		18.3	%		18.3	%		18.9	%		18.2	%		18.7	%
Administrative expense ratio		13.2	%		13.6	%		11.9	%		12.8	%		13.0	%		13.4	%		13.3	%		12.8	%
Combined ratio		89.7	%		87.4	%		80.0	%		91.1	%		89.9	%		88.5	%		89.6	%		87.5	%
Large losses and other items
Asbestos, environmental and other run-off losses	$	—		$	—		$	6		$	—		$	—		$	—		$	—		$	6
Large losses (before tax)	$	—		$	—		$	—		$	53		$	—		$	—		$	—		$	53
Prior period development	$	(21	)	$	7		$	26		$	(8	)	$	(4	)	$	(14	)	$	(12	)	$	6
% Change versus prior year period
Net premiums written		-3	%		1	%		10	%		13	%		16	%		-1	%		18	%		15	%
Net premiums earned		1	%		7	%		11	%		21	%		17	%		4	%		19	%		17	%
Other ratios
Net premiums written/gross premiums written		74	%		73	%		78	%		76	%		73	%		74	%		72	%		74	%

(1) See page 27 Non-GAAP Financial Measures.

Insurance-Overseas General Page 11

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

Insurance - Overseas General

	1Q-04			4Q-03			3Q-03			2Q-03			1Q-03			Full Year 2003			Full Year 2002
	(Restated)			(Restated)			(Restated)			(Restated)			(Restated)			(Restated)			(Restated)
Gross premiums written	$	1,673		$	1,341		$	1,200		$	1,244		$	1,406		$	5,191		$	4,114
Net premiums written		1,178			983			868			949			976			3,776			2,838
Net premiums earned		1,019			1,019			895			912			836			3,662			2,498
Losses and loss expenses		586			616			527			550			490			2,183			1,535
Policy acquisition costs		185			197			170			163			152			682			533
Administrative expenses		138			134			121			121			114			490			381
Underwriting income	$	110		$	72		$	77		$	78		$	80		$	307		$	49
Net investment income		50			44			43			40			39			166			112
Net realized gains (losses)		24			1			4			2			(13	)		(6	)		(37	)
Interest expense		—			(1	)		1			—			—			—			1
Other (income) expense		3			6			4			2			3			15			14
Income tax expense		51			21			19			31			27			98			2
Net income	$	130		$	91		$	100		$	87		$	76		$	354		$	107
Net realized gains (losses)		24			1			4			2			(13	)		(6	)		(37	)
Tax expense on net realized gains (losses)		7			—			—			—			(5	)		(5	)		(12	)
Income excluding net realized gains (losses)(1)	$	113		$	90		$	96		$	85		$	84		$	355		$	132
Combined ratio
Loss and loss expense ratio		57.5	%		60.5	%		58.9	%		60.2	%		58.7	%		59.6	%		61.5	%
Policy acquisition cost ratio		18.1	%		19.3	%		19.0	%		17.8	%		18.2	%		18.6	%		21.3	%
Administrative expense ratio		13.5	%		13.2	%		13.5	%		13.3	%		13.7	%		13.4	%		15.3	%
Combined ratio		89.1	%		93.0	%		91.4	%		91.3	%		90.6	%		91.6	%		98.1	%

(1) See page 27 Non-GAAP Financial Measures.

Insurance-Overseas General 2 Page 12

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

Global Reinsurance

	2Q-05			1Q-05			4Q-04			3Q-04			2Q-04			YTD 2005			YTD 2004			Full Year 2004
				(Restated)			(Restated)			(Restated)			(Restated)						(Restated)			(Restated)
Property and casualty
Gross premiums written	$	369		$	536		$	286		$	334		$	368		$	905		$	947		$	1,567
Net premiums written		363			527			280			301			365			890			937			1,518
Net premiums earned		372			356			359			351			347			728			679			1,389
Losses and loss expenses		206			205			204			436			173			411			333			973
Policy acquisition costs		77			73			68			65			74			150			138			271
Administrative expenses		16			15			15			16			16			31			34			65
P&C underwriting income (loss)		73			63			72			(166	)		84			136			174			80
Life
Gross premiums written		57			58			55			60			56			115			109			224
Net premiums written		57			58			55			59			55			115			106			220
Net premiums earned		57			58			55			60			54			115			105			220
Life and annuity benefits		37			35			38			48			44			72			86			172
Policy acquisition costs		4			4			5			6			6			8			11			22
Administrative expenses		1			2			1			1			1			3			2			4
Net investment income		10			9			9			8			8			19			16			33
Life underwriting income		25			26			20			13			11			51			22			55
Total underwriting income (loss)		98			89			92			(153	)		95			187			196			135
Net investment income - property and casualty		40			39			38			32			29			79			56			126
Net realized gains (losses)		33			(22	)		67			(35	)		12			11			2			34
Interest expense		—			1			—			—			—			1			—			—
Other (income) expense		1			1			(1	)		—			—			2			—			(1	)
Income tax expense (benefit)		9			9			11			(1	)		1			18			4			14
Net income (loss)		161			95			187			(155	)		135			256			250			282
Net realized gains (losses)		33			(22	)		67			(35	)		12			11			2			34
Tax expense on net realized gains (losses)		—			—			—						—			—			—			—
Income (loss) excluding net realized gains (losses)(1)	$	128		$	117		$	120		$	(120	)	$	123		$	245		$	248		$	248
P&C combined ratio
Loss and loss expense ratio		55.4	%		57.6	%		57.0	%		123.9	%		50.0	%		56.5	%		49.1	%		70.1	%
Policy acquisition cost ratio		20.7	%		20.5	%		19.0	%		18.6	%		21.3	%		20.6	%		20.3	%		19.5	%
Administrative expense ratio		4.1	%		4.3	%		4.0	%		4.6	%		4.5	%		4.2	%		5.0	%		4.6	%
P&C combined ratio		80.2	%		82.4	%		80.0	%		147.1	%		75.8	%		81.3	%		74.4	%		94.2	%
Large losses and other items
Large losses (before tax)	$	—		$	3		$	31		$	278		$	—		$	3		$	—		$	309
Prior period development	$	(3	)	$	—		$	(13	)	$	(22	)	$	(13	)	$	(3	)	$	(26	)	$	(61	)

(1) See page 27 Non-GAAP Financial Measures.

Global Reinsurance Page 13

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

Global Reinsurance

	1Q-04			4Q-03			3Q-03			2Q-03			1Q-03			Full Year 2003			Full Year 2002
	(Restated)			(Restated)			(Restated)			(Restated)			(Restated)			(Restated)			(Restated)
Property and casualty
Gross premiums written	$	579		$	226		$	277		$	350		$	463		$	1,316		$	887
Net premiums written		572			220			219			347			443			1,229			777
Net premiums earned		332			310			276			270			249			1,105			677
Losses and loss expenses		160			167			134			143			116			560			304
Policy acquisition costs		64			58			56			51			46			211			123
Administrative expenses		18			17			16			14			15			62			40
P&C underwriting income (loss)		90			68			70			62			72			272			210
Life
Gross premiums written		53			49			49			46			49			193			165
Net premiums written		51			47			47			44			47			185			159
Net premiums earned		51			48			46			42			48			184			158
Life and annuity benefits		42			44			45			44			48			181			158
Policy acquisition costs		5			5			5			2			4			16			16
Administrative expenses		1			1			—			1			1			3			6
Net investment income		8			8			10			8			7			33			27
Life underwriting income		11			6			6			3			2			17			5
Total underwriting income (loss)		101			74			76			65			74			289			215
Net investment income - property and casualty		27			24			24			22			17			87			82
Net realized gains (losses)		(10	)		7			10			13			3			33			(57	)
Interest expense		—			—			—			—			—			—			1
Other (income) expense		—			(1	)		(1	)		—			(1	)		(3	)		(1	)
Income tax expense (benefit)		3			4			3			4			3			14			1
Net income (loss)		115			102			108			96			92			398			239
Net realized gains (losses)		(10	)		7			10			13			3			33			(57	)
Tax expense on net realized gains (losses)		—			1			—			(1	)		—			—			—
Income (loss) excluding net realized gains (losses)(1)	$	125		$	96		$	98		$	82		$	89		$	365		$	296
P&C combined ratio
Loss and loss expense ratio		48.1	%		53.8	%		48.6	%		52.9	%		46.6	%		50.6	%		44.9	%
Policy acquisition cost ratio		19.3	%		18.8	%		20.3	%		18.7	%		18.5	%		19.1	%		18.1	%
Administrative expense ratio		5.6	%		5.5	%		5.6	%		5.3	%		6.0	%		5.6	%		5.9	%
P&C combined ratio		73.0	%		78.1	%		74.5	%		76.9	%		71.1	%		75.3	%		68.9	%

(1) See page 27 Non-GAAP Financial Measures.

Global Reinsurance 2 Page 14

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

Global Reinsurance - Property & Casualty

	2Q-05			1Q-05			4Q-04			3Q-04			2Q-04			YTD 2005			YTD 2004			Full Year 2004
				(Restated)			(Restated)			(Restated)			(Restated)						(Restated)			(Restated)
% Change versus prior year period
Net premiums written		-1	%		-8	%		27	%		37	%		5	%		-5	%		19	%		24	%
Net premiums earned		7	%		7	%		16	%		27	%		29	%		7	%		31	%		26	%
Other ratios
Net premiums written/gross premiums written		98	%		98	%		98	%		90	%		99	%		98	%		99	%		97	%
Global Reinsurance - By Division
Gross premiums written
Tempest Europe	$	49		$	105		$	64		$	76		$	60		$	154		$	186		$	326
Tempest USA		228			248			204			196			225			476			477			881
Tempest Bermuda		92			183			18			62			83			275			284			360
Total	$	369		$	536		$	286		$	334		$	368		$	905		$	947		$	1,567
Net premiums written
Tempest Europe	$	46		$	102		$	61		$	74		$	54		$	148		$	176		$	311
Tempest USA		227			247			204			195			224			474			476			877
Tempest Bermuda		90			178			15			32			87			268			285			330
Total	$	363		$	527		$	280		$	301		$	365		$	890		$	937		$	1,518
Net premiums earned
Tempest Europe	$	66		$	76		$	76		$	77		$	75		$	142		$	150		$	303
Tempest USA		230			212			204			185			189			442			358			749
Tempest Bermuda		76			68			79			89			83			144			171			337
Total	$	372		$	356		$	359		$	351		$	347		$	728		$	679		$	1,389
Net premiums written/gross premiums written
Tempest Europe		94	%		97	%		95	%		97	%		90	%		96	%		95	%		95	%
Tempest USA		100	%		100	%		100	%		99	%		100	%		100	%		100	%		100	%
Tempest Bermuda		98	%		97	%		83	%		52	%		105	%		97	%		100	%		92	%
Total NPW/GPW		98	%		98	%		98	%		90	%		99	%		98	%		99	%		97	%

Global Reinsurance 3 Page 15

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

Financial Services

	2Q-05			1Q-05			4Q-04			3Q-04			2Q-04			YTD 2005			YTD 2004			Full Year 2004
				(Restated)			(Restated)			(Restated)			(Restated)						(Restated)			(Restated)
Gross premiums written	$	15		$	163		$	29		$	68		$	15		$	178		$	223		$	320
Net premiums written		15			161			27			68			13			176			221			316
Net premiums earned		92			90			96			111			134			182			313			520
Losses and loss expenses		70			83			97			116			90			153			175			388
Policy acquisition costs		1			2			1			2			9			3			20			23
Administrative expenses		7			4			1			4			9			11			34			39
Underwriting income (loss)		14			1			(3	)		(11	)		26			15			84			70
Net investment income		30			32			29			29			36			62			89			147
Net realized gains (losses)		3			6			12			(2	)		(32	)		9			(27	)		(17	)
Interest expense		—			—			—			2			1			—			3			5
Other (income) expense		(13	)		(12	)		(15	)		(14	)		(7	)		(25	)		4			(25	)
Income tax expense		7			6			3			1			11			13			31			35
Net income		53			45			50			27			25			98			108			185
Net realized gains (losses)		3			6			12			(2	)		(32	)		9			(27	)		(17	)
Tax expense (benefit) on net realized gains (losses)		(1	)		2			2			(2	)		1			1			8			8
Income excluding net realized gains (losses)(1)	$	49		$	41		$	40		$	27		$	58		$	90		$	143		$	210
Combined ratio
Loss and loss expense ratio		76.0	%		92.2	%		101.3	%		104.7	%		66.1	%		84.0	%		55.8	%		74.6	%
Policy acquisition cost ratio		1.4	%		2.2	%		-0.1	%		2.3	%		7.0	%		1.8	%		6.4	%		4.3	%
Administrative expense ratio		6.7	%		4.6	%		1.8	%		2.7	%		7.5	%		5.7	%		11.0	%		7.5	%
Combined ratio		84.1	%		99.0	%		103.0	%		109.7	%		80.6	%		91.5	%		73.2	%		86.4	%
Large losses and other items
Loss portfolio transfers(2)	$	—		$	—		$	8		$	19		$	—		$	—		$	—		$	27
Large losses (before tax)	$	—		$	—		$	—		$	11		$	—		$	—		$	—		$	11
Prior period development	$	(8	)	$	1		$	(8	)	$	(14	)	$	(5	)	$	(7	)	$	(7	)	$	(29	)
% Change versus prior year period
Net premiums written		15	%		-23	%		-90	%		-35	%		-90	%		-20	%		-66	%		-69	%
Net premiums earned		-31	%		-50	%		-80	%		-46	%		-37	%		-42	%		-24	%		-52	%
Other ratios
Net premiums written/gross premiums written		100	%		99	%		93	%		100	%		87	%		99	%		99	%		99	%

(1) See page 27 Non-GAAP Financial Measures.

(2) Total premiums typically included in gross premiums written, net premiums written, and net premiums earned in the quarter it is written; usually accrued at 100% loss ratio.

Financial Services Page 16

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

Financial Services

	1Q-04			4Q-03			3Q-03			2Q-03			1Q-03			Full Year 2003			Full Year 2002
	(Restated)			(Restated)			(Restated)			(Restated)			(Restated)			(Restated)			(Restated)
Gross premiums written	$	208		$	290		$	106		$	118		$	521		$	1,035		$	1,504
Net premiums written		208			276			105			132			515			1,028			1,464
Net premiums earned		179			471			204			214			198			1,087			1,094
Losses and loss expenses		85			427			151			158			148			884			912
Policy acquisition costs		11			15			18			17			11			61			72
Administrative expenses		25			24			22			20			18			84			57
Underwriting income (loss)		58			5			13			19			21			58			53
Net investment income		53			53			49			48			51			201			190
Net realized gains (losses)		5			93			29			73			(4	)		191			(117	)
Interest expense		2			2			2			1			1			6			10
Other (income) expense		11			—			—			(1	)		—			(1	)		(2	)
Income tax expense		20			10			17			28			9			64			13
Net income		83			139			72			112			58			381			105
Net realized gains (losses)		5			93			29			73			(4	)		191			(117	)
Tax expense (benefit) on net realized gains (losses)		7			11			6			20			—			37			(17	)
Income excluding net realized gains (losses)(1)	$	85		$	57		$	49		$	59		$	62		$	227		$	205
Combined ratio
Loss and loss expense ratio		48.0	%		90.7	%		73.9	%		73.9	%		74.8	%		81.3	%		83.4	%
Policy acquisition cost ratio		5.9	%		3.2	%		8.7	%		7.8	%		5.5	%		5.6	%		6.6	%
Administrative expense ratio		13.7	%		5.1	%		10.7	%		9.6	%		9.1	%		7.8	%		5.2	%
Combined ratio		67.6	%		99.0	%		93.3	%		91.3	%		89.4	%		94.7	%		95.2	%

(1) See page 27 Non-GAAP Financial Measures.

Financial Services 2 Page 17

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

	Total									Ongoing									Run-off(1)
	Unpaid Losses									Unpaid Losses									Unpaid Losses
	Gross			Ceded			Net			Gross			Ceded			Net			Gross			Ceded			Net
	(Restated)			(Restated)			(Restated)			(Restated)			(Restated)			(Restated)
Balance at December 31, 2003	$	27,166		$	12,443		$	14,723		$	19,846		$	6,950		$	12,896		$	7,320		$	5,493		$	1,827
Losses and loss expenses incurred		2,285			756			1,529			2,243			724			1,519			42			32			10
Losses and loss expenses paid		(1,860	)		(781	)		(1,079	)		(1,639	)		(545	)		(1,094	)		(221	)		(236	)		15
Other (incl. foreign exch. revaluation)		117			110			7			117			110			7			—			—			—
Balance at March 31, 2004		27,708			12,528			15,180			20,567			7,239			13,328			7,141			5,289			1,852
Losses and loss expenses incurred		2,453			727			1,726			2,483			761			1,722			(30	)		(34	)		4
Losses and loss expenses paid		(1,693	)		(593	)		(1,100	)		(1,402	)		(399	)		(1,003	)		(291	)		(194	)		(97	)
Other (incl. foreign exch. revaluation)		(233	)		166			(399	)		(233	)		166			(399	)		—			—			—
Balance at June 30, 2004		28,235			12,828			15,407			21,415			7,767			13,648			6,820			5,061			1,759
Losses and loss expenses incurred		3,309			1,076			2,233			3,280			1,058			2,222			29			18			11
Losses and loss expenses paid		(1,957	)		(697	)		(1,260	)		(1,749	)		(372	)		(1,377	)		(208	)		(325	)		117
Other (incl. foreign exch. revaluation)		27			48			(21	)		(396	)		(375	)		(21	)		423			423			—
Balance at September 30, 2004		29,614			13,255			16,359			22,550			8,078			14,472			7,064			5,177			1,887
Losses and loss expenses incurred		3,719			1,514			2,205			2,679			1,090			1,589			1,040			424			616
Losses and loss expenses paid		(2,381	)		(987	)		(1,394	)		(2,272	)		(939	)		(1,333	)		(109	)		(48	)		(61	)
Other (incl. foreign exch. revaluation)		531			188			343			244			(141	)		385			287			329			(42	)
Balance at December 31, 2004		31,483			13,970			17,513			23,201			8,088			15,113			8,282			5,882			2,400
Losses and loss expenses incurred		2,539			750			1,789			2,495			728			1,767			44			22			22
Losses and loss expenses paid		(2,001	)		(765	)		(1,236	)		(1,820	)		(663	)		(1,157	)		(181	)		(102	)		(79	)
Other (incl. foreign exch. revaluation)(2)		(595	)		(595	)		—			(669	)		(670	)		1			74			75			(1	)
Balance at March 31, 2005		31,426			13,360			18,066			23,207			7,483			15,724			8,219			5,877			2,342
Losses and loss expenses incurred		2,809			965			1,844			2,789			954			1,835			20			11			9
Losses and loss expenses paid		(1,916	)		(750	)		(1,166	)		(1,708	)		(565	)		(1,143	)		(208	)		(185	)		(23	)
Other (incl. foreign exch. revaluation)		(218	)		(71	)		(147	)		(191	)		(71	)		(120	)		(27	)		—			(27	)
Balance at June 30, 2005	$	32,101		$	13,504		$	18,597		$	24,097		$	7,801		$	16,296		$	8,004		$	5,703		$	2,301

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

(2) Novation of a contract for $597M.

Loss Reserve Rollforward Page 18

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

Net Reinsurance Recoverable by Division

	June 30 2005			March 31 2005			December 31 2004
	(Restated)			(Restated)			(Restated)
Reinsurance recoverable on paid losses & loss expenses
Active operations	$	768		$	795		$	788
Brandywine		415			385			398
Westchester		32			24			24
Total	$	1,215		$	1,204		$	1,210
Reinsurance recoverable on unpaid losses & loss expenses
Active operations	$	8,911		$	8,612		$	9,296
Brandywine		4,654			4,796			4,720
Westchester		571			578			589
Total	$	14,136		$	13,986		$	14,605
Gross reinsurance recoverable
Active operations	$	9,679		$	9,407		$	10,084
Brandywine		5,069			5,181			5,118
Westchester		603			602			613
Total	$	15,351		$	15,190		$	15,815
Bad debt reserve
Active operations	$	(579	)	$	(577	)	$	(547	)
Brandywine		(302	)		(302	)		(341	)
Westchester		(38	)		(38	)		(40	)
Total	$	(919	)	$	(917	)	$	(928	)
Net reinsurance recoverable
Active operations	$	9,100		$	8,830		$	9,537
Brandywine		4,767			4,879			4,777
Westchester		565			564			573
Total	$	14,432		$	14,273		$	14,887

Reinsurance Recoverable Page 19

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

Reinsurance Recoverable for Active Operations
	March 31, 2005 (Restated)
Categories	Recoverable		Bad Debt		% of Gross
Top 10 reinsurers	$	4,341	$	71	1.6	%
Other reinsurers balances >$20 million		2,220		118	5.3	%
Other reinsurers balances <$20 million		432		35	8.1	%
Mandatory pools and government agencies		697		3	0.4	%
Structured settlements		207		1	0.5	%
Captives		1,106		1	0.1	%
Other(1)		404		348	86.1	%
Total	$	9,407	$	577	6.1	%

At March 31, 2005, $6.5 billion of the active operations’ recoverables were from rated reinsurers, of which 93.7% were rated the equivalent of A- or better by internationally recognized rating agencies. The Company held collateral of $2.8 billion, of which $1.5 billion was matched and usable against existing recoverables.

Top 10 Reinsurers (net of collateral)(2)	Other Reinsurers Balances Greater Than $20 million (net of collateral)(2)
American International Group (including Transatlantic Reinsurance Company)	AGRI General Ins Co AIOI Insurance	Independence Blue Cross (Amerihealth) ING - Internationale Nederlanden GRP
Berkshire Hathaway Insurance Group	Allianz	IRB - Brasil Reaseguros S.A.
Chubb Insurance Group	Arch Capital	Liberty Mutual Insurance Companies
Electric Insurance Company	Aspen Insurance Holdings Ltd	Overseas Partners Ltd
GE Insurance Solutions	AXA	Partner Re
HDI Haftpflichtverband Der Deutschen Industrie VAG	Cigna	Platinum Underwriters
Lloyd’s of London	CNA Insurance Companies	Renaissance Re Holdings Ltd
Munich Re	Converium Group	Royal & Sun Alliance Insurance Group
Swiss Re Group	Endurance Specialty	SCOR Group
XL Capital Group	Everest Re Group	Sompo Japan
	Fairfax Financial	St. Paul Travelers Companies
	Federal Crop Insurance Corp	Toa Reinsurance Company
	FM Global Group	Trenwick Group
	Gerling Group	White Mountains Insurance Group
	Hartford Insurance Group	WR Berkley Corp
		Zurich Financial Services Group

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

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

Reinsurance Rec-Active Page 20

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

Consolidated Reinsurance Recoverable
	March 31, 2005 (Restated)
Categories	Recoverable		Bad Debt		% of Gross
Top 10 reinsurers	$	7,520	$	100	1.3	%
Other reinsurers balances >$20 million		3,399		219	6.4	%
Other reinsurers balances <$20 million		939		123	13.1	%
Mandatory pools and government agencies		724		4	0.6	%
Structured settlements		489		2	0.4	%
Captives		1,198		2	0.2	%
Other(1)		921		467	50.7	%
Total	$	15,190	$	917	6.0	%

At March 31, 2005, $10.6 billion of consolidated recoverables were from rated reinsurers, of which 94.5% were rated the equivalent of A- or better by internationally recognized rating agencies.

Top 10 Reinsurers (net of collateral)(2)	Other Reinsurers Balances Greater Than $20 million (net of collateral)(2)
American International Group (including Transatlantic Reinsurance Company)	AGRI General Ins Co	Hartford Insurance Group
Berkshire Hathaway Insurance Group	AIOI Insurance	Independence Blue Cross (Amerihealth)
Everest Re Group	Allianz	ING - Internationale Nederlanden GRP
Equitas	Allstate	IRB - Brasil Reaseguros S.A.
GE Insurance Solutions	Arch Capital	Liberty Mutual Insurance Companies
HDI Haftpflichtverband Der Deutschen Industrie VAG	Aspen Insurance Holdings Ltd	Millea Holdings
Lloyd’s of London	Assicurazioni Generali SPA	Mitsui Sumitomo Insurance Company Ltd.
Munich Re	AVIVA	Overseas Partners Ltd
Swiss Re Group	AXA	Partner Re
XL Capital Group	Chubb Insurance Group	Platinum Underwriters
	CIGNA	QBE Insurance
	CNA Insurance Companies	Renaissance Re Holdings Ltd
	Converium Group	Royal & Sun Alliance Insurance Group
	Dominion Ins. Co. Ltd	SCOR Group
	Dukes Place Holdings	Sompo Japan
	Electric Insurance Company	St. Paul Travelers Companies
	Endurance Specialty	Toa Reinsurance Company
	Fairfax Financial	Trenwick Group
	Federal Crop Insurance Corp	White Mountains Insurance Group
	FM Global Group	WR Berkley Corp
	Gerling Group	Zurich Financial Services Group

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

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

Reinsurance Rec-Consolidated Page 21

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

Detail on Reinsurance Recoverable on Paid Losses and Loss Expenses

	General Collections (1)			Other(2)			Total
	(Restated)			(Restated)			(Restated)
Gross balance at December 31, 2004	$	716		$	494		$	1,210
Bad debt reserve at 12/31/04		37			272			309
% of gross		5.2	%		55.1	%		25.5	%
Net balance at December 31, 2004(3)	$	679		$	222		$	901
Gross balance at March 31, 2005	$	712		$	492		$	1,204
Bad debt reserve at 3/31/05		37			268			305
% of gross		5.2	%		54.5	%		25.3	%
Net balance at March 31, 2005(3)	$	675		$	224		$	899
Gross balance at June 30, 2005	$	719		$	496		$	1,215
Bad debt reserve at 6/30/05		29			271			300
% of gross		4.0	%		54.6	%		24.7	%
Net balance at June 30, 2005	$	690		$	225		$	915

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

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

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

Reinsurance Recoverable 4 Page 22

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

	June 30 2005			March 31 2005			December 31 2004
				(Restated)			(Restated)
Market Value
Fixed maturities available for sale	$	21,217		$	20,418		$	22,976
Fixed maturities held to maturity		3,207			3,207			—
Short-term investments		2,521			2,198			2,201
Total	$	26,945		$	25,823		$	25,177
Asset Allocation by Market Value
Treasury	$	1,704		$	1,728		$	1,551
Agency		1,555			1,519			1,549
Corporate		7,612			7,674			7,677
Mortgage-backed securities		6,180			5,515			5,043
Asset-backed securities		1,453			1,223			1,234
Municipal		550			561			568
Non-US		5,370			5,405			5,376
Cash & cash equivalent		2,521			2,198			2,179
Total		26,945			25,823		$	25,177
Credit Quality by Market Value
AAA	$	16,266		$	14,800		$	13,944
AA		2,208			2,485			2,642
A		4,336			4,492			4,441
BBB		1,982			2,195			2,289
BB		1,046			819			776
B		1,060			982			1,041
Other		47			50			44
Total		26,945			25,823		$	25,177
Cost/Amortized Cost
Fixed maturities available for sale	$	20,908		$	20,302		$	22,510
Fixed maturities held to maturity		3,151			3,211			—
Short term investments		2,521			2,198			2,201
Subtotal		26,580			25,711			24,711
Equity securities		1,213			1,170			1,061
Other investments		562			564			551
Total	$	28,355		$	27,445		$	26,323
Avg. duration of fixed maturities, adjusted for int. rate swaps		3.0 years			3.1 years			3.4 years
Avg. market yield of fixed maturities		4.3	%		4.5	%		4.1	%
Avg. credit quality		AA			AA			AA

Investments Page 23

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

	Three months ended June 30, 2005									Six months ended June 30, 2005
	Net Realized Gains (Losses) (1)			Net Unrealized Gains (Losses)			Net Impact			Net Realized Gains (Losses) (1)			Net Unrealized Gains (Losses)			Net Impact
Investment Portfolio Gains (Losses)
Fixed maturities	$	26		$	191		$	217		$	13		$	(151	)	$	(138	)
Interest rate swaps		(2	)		—			(2	)		—			—			—
Equity securities		21			(14	)		7			35			(37	)		(2	)
Equity and fixed income derivatives		(41	)		—			(41	)		(43	)		—			(43	)
Foreign exchange gains (losses)		2			—			2			(1	)		—			(1	)
Other		2			13			15			4			29			33
Total inv. portfolio gains (losses)		8			190			198			8			(159	)		(151	)
Other FAS 133 adjustments		24			—			24			10			—			10
Total gains (losses)		32			190			222			18			(159	)		(141	)
Income tax expense (benefit)		8			44			52			12			(25	)		(13	)
Net gains (losses)	$	24		$	146		$	170		$	6		$	(134	)	$	(128	)

(1) The quarter includes impairments of $4M for fixed maturities and $1M for equities. Year to date includes impairments of $24M for fixed maturities and $2M for equities.

	Three months ended June 30, 2004									Six months ended June 30, 2004
	Net Realized Gains (Losses) (2)			Net Unrealized Gains (Losses)			Net Impact			Net Realized Gains (Losses) (1)			Net Unrealized Gains (Losses)			Net Impact
	(Restated)			(Restated)			(Restated)			(Restated)			(Restated)			(Restated)
Investment Portfolio Gains (Losses)
Fixed maturities	$	(8	)	$	(716	)	$	(724	)	$	47		$	(538	)	$	(491	)
Interest rate swaps		27			—			27			13			—			13
Equity securities		40			(27	)		13			68			(31	)		37
Equity and fixed income derivatives		3			—			3			16			—			16
Foreign exchange gains (losses)		(8	)		—			(8	)		(3	)		—			(3	)
Other		(4	)		26			22			(11	)		30			19
Total inv. portfolio gains (losses)		50			(717	)		(667	)		130			(539	)		(409	)
Other FAS 133 adjustments		(8	)		—			(8	)		(31	)		—			(31	)
Total gains (losses)		42			(717	)		(675	)		99			(539	)		(440	)
Income tax expense (benefit)		10			(171	)		(161	)		31			(123	)		(92	)
Net gains (losses)	$	32		$	(546	)	$	(514	)	$	68		$	(416	)	$	(348	)

(2) The quarter includes impairments of $3M for fixed maturities and $2M for equities. Year to date includes impairments of $4M for fixed maturities and $3M for equities.

Investment Gains (Losses) Page 24

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

	June 30 2005			March 31 2005			December 31 2004			December 31 2003
				(Restated)			(Restated)			(Restated)
Total short-term debt	$	147		$	147		$	146		$	546
Total long-term debt		1,849			1,849			1,849			1,349
Total debt		1,996			1,996			1,995			1,895
Total trust preferreds		412			412			412			475
Perpetual preferred		557			557			557			557
Ordinary shareholders’ equity		9,939			9,409			9,286			8,254
Total shareholders’ equity	$	10,496		$	9,966		$	9,843		$	8,811
Total capitalization	$	12,904		$	12,374		$	12,250		$	11,181
Tangible shareholders’ equity(1)	$	7,797		$	7,275		$	7,148		$	6,018
Leverage ratios
Debt/ total capitalization		15.5	%		16.1	%		16.3	%		16.9	%
Debt plus trust preferreds/ total capitalization		18.7	%		19.5	%		19.6	%		21.2	%
Debt/ tangible equity		25.6	%		27.4	%		27.9	%		31.5	%
Debt plus trust preferreds/ tangible equity		30.9	%		33.1	%		33.7	%		39.4	%
Debt plus total preferred stock/ total capitalization		23.0	%		24.0	%		24.2	%		26.2	%

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

Capital Structure Page 25

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 June 30						Six months ended June 30
	2005			2004			2005			2004
				(Restated)						(Restated)
Numerator
Income excluding net realized gains (losses)(1)	$	443		$	391		$	898		$	809
Perpetual preferred dividend		(11	)		(11	)		(22	)		(22	)
Income to ordinary shares, excl. net realized gains (losses)		432			380			876			787
Net realized gains (losses), net of income tax		24			32			6			68
Net income available to the holders of ordinary shares	$	456		$	412		$	882		$	855
Rollforward of ordinary shares
Ordinary shares - beginning of period		287,353,327			282,714,909			284,478,525			279,897,193
Issued under employee stock purchase plan		—			(2	)		109,411			125,629
Stock (cancelled) granted		(3,505	)		(347,919	)		1,340,712			911,686
Issued for option exercises		723,617			1,237,457			2,144,791			2,669,937
Ordinary shares - end of period		288,073,439			283,604,445			288,073,439			283,604,445
Denominator
Weighted average shares outstanding		283,972,257			280,007,156			283,595,386			279,477,772
Effect of other dilutive securities		4,478,907			5,364,008			4,577,133			5,560,172
Adj. wtd. avg. shares outstanding and assumed conversions		288,451,164			285,371,164			288,172,519			285,037,944
Basic earnings per share
Income excluding net realized gains (losses)(1)	$	1.52		$	1.36		$	3.09		$	2.81
Net realized gains (losses), net of income tax		0.09			0.11			0.02			0.25
Net income	$	1.61		$	1.47		$	3.11		$	3.06
Diluted earnings per share
Income excluding net realized gains (losses)(1)	$	1.50		$	1.33		$	3.04		$	2.76
Net realized gains (losses), net of income tax		0.08			0.11			0.02			0.24
Net income	$	1.58		$	1.44		$	3.06		$	3.00

(1) See page 27 Non-GAAP Financial Measures.

Earnings per share Page 26

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

Regulation G - Non-GAAP Financial Measures

In presenting our results, we have included and discussed certain non-GAAP measures. These non-GAAP measures, which may be defined differently by other companies, are important for an understanding of our overall results of operations; however, they should not be viewed as a substitute for measures determined in accordance with GAAP. A reconciliation of book value per share to diluted book value per ordinary share is provided on page 28.

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

The following non-GAAP measure is a common performance measurement and is defined as income (loss) excluding net realized gains (losses) and the tax expense on net realized gains (losses). We believe this presentation enhances the understanding of our results of operations by highlighting the underlying profitability of our insurance business. We exclude net realized gains (losses) because the amount of these gains (losses) is heavily influenced by, and fluctuates in part, according to the availability of market opportunities. We believe these amounts are largely independent of our business and including them would distort the analysis of trends. Income excluding net realized gains (losses) should not be viewed as a substitute for net income determined in accordance with generally accepted accounting principles (GAAP).

	2Q-05		1Q-05			4Q-04		3Q-04			2Q-04		YTD 2005		YTD 2004		Full Year 2004
			(Restated)			(Restated)		(Restated)			(Restated)				(Restated)		(Restated)
Net income (loss), as reported	$	467	$	437		$	286	$	(4	)	$	423	$	904	$	877	$	1,159
Net realized gains (losses)		32		(14	)		130		(32	)		42		18		99		197
Income tax expense on net realized gains (losses)		8		4			12		1			10		12		31		44
Income excluding net realized gains (losses)	$	443	$	455		$	168	$	29		$	391	$	898	$	809	$	1,006

Reconciliation Non-GAAP Page 27

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

Reconciliation of Book Value per Ordinary Share to Diluted Book Value per Ordinary Share

	June 30 2005			March 31 2005			December 31 2004
				(Restated)			(Restated)
Shareholders’ equity	$	10,496		$	9,966		$	9,843
Net proceeds from assumed conversions of options		468			271			312
Proceeds from issuance of preferred shares		(557	)		(557	)		(557	)
Numerator for diluted book value per share calculation		10,407			9,680			9,598
Less: goodwill		2,699			2,691			2,695
Numerator for diluted tangible book value per share	$	7,708		$	6,989		$	6,903
Ordinary shares outstanding - end of period		288,073,439			287,353,327			284,478,525
Shares issued from assumed conversions of options		15,478,846			9,346,765			10,830,932
Denominator for diluted and diluted tangible book value		303,552,285			296,700,092			295,309,457
Book value per ordinary share	$	34.50		$	32.74		$	32.64
Diluted book value per ordinary share	$	34.28		$	32.63		$	32.50
Diluted tangible book value per ordinary share	$	25.39		$	23.56		$	23.38

Reconciliation Book Value Page 28

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

Consolidated Statement of Comprehensive Income

	2Q-05			1Q-05			4Q-04			3Q-04			2Q-04			YTD 2005			YTD 2004			Full Year 2004
				(Restated)			(Restated)			(Restated)			(Restated)						(Restated)			(Restated)
Net income (loss)	$	467		$	437		$	286		$	(4	)	$	423		$	904		$	877		$	1,159
Net unrealized appreciation (depreciation) on investments
Unrealized appreciation (depreciation) on investments		248			(301	)		169			408			(634	)		(53	)		(395	)		182
Reclassification adjustment for net realized gains (losses) included in net income		(56	)		(48	)		(96	)		(32	)		(83	)		(104	)		(144	)		(272	)
Amortization of net unrealized appreciation related to held to maturity securities		(2	)		—			—			—			—			(2	)		—			—
Cumulative translation adjustment		(68	)		(13	)		126			33			(24	)		(81	)		(22	)		137
Minimum pension liability adjustment		4			2			(45	)		3			1			6			(1	)		(43	)
Income tax (expense) benefit related to other comprehensive income items		(21	)		72			(35	)		(83	)		180			51			139			21
Other comprehensive income (loss)		105			(288	)		119			329			(560	)		(183	)		(423	)		25
Comprehensive income (loss)	$	572		$	149		$	405		$	325		$	(137	)	$	721		$	454		$	1,184

Comprehensive Income Page 29

ACE Limited Glossary

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

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

Diluted book value per ordinary share: Ordinary shareholders’ equity and net proceeds from assumed conversions of outstanding in-the-money options divided by the sum of shares outstanding and the number of options assumed issued.

Diluted tangible book value per ordinary share:Ordinary shareholders’ equity and net proceeds from assumed conversions of outstanding in-the-money options less goodwill divided by the sum of shares outstanding and the number of options assumed issued.

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

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

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

NM: Not meaningful.

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

P & C:Property and casualty.

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

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

Tangible equity:Shareholders’ equity less goodwill.

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

YTD:Year to date.

Glossary Page 30