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

Exhibit 99.2

	Financial Supplement March 31, 2007
Investor Contact Helen M. Wilson Phone: (441) 299-9283 Fax: (441) 292-8675	This report is for informational purposes only. It should be read in conjunction with documents filed by ACE Limited with the Securities and Exchange Commission, including the most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q.
email: investorrelations@ace.bm	Cautionary Statement Regarding Forward-Looking Statements:
	Any forward-looking statements made in this financial supplement reflect the Company’s current views with respect to future events and financial performance and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements involve risks and uncertainties which may cause actual results to differ materially from those set forth in these statements. For example, the Company’s forward-looking statements, such as statements concerning exposures, reserves and recoverables, could be affected by the frequency of unpredictable catastrophic events, actual loss experience, uncertainties in the reserving or settlement process, new theories of liability, judicial, legislative, regulatory and other governmental developments, litigation tactics and developments, investigation developments and actual settlement terms, the amount and timing of reinsurance receivable and credit developments among reinsurers.
	The Company’s forward-looking statements could also be affected by competition, pricing and policy term trends, the levels of new and renewal business achieved, market acceptance, changes in demand, actual market developments, rating agency action, possible terrorism or the outbreak and effects of war. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the dates on which they are made. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

ACE Limited Financial Supplement Table of Contents

		Page
I.	Financial Highlights
	- Consolidated Financial Highlights	1
II.	Consolidated Results
	- Consolidated Results - Consecutive Quarters	2
	- Summary Consolidated Balance Sheets	3
	- Consolidated Premiums by Line of Business	4
	- Consolidating Statement of Operations	5
III.	Segment Results
	- Insurance-North American	6
	- Insurance-Overseas General	7
	- Global Reinsurance	8-9
	- Life Insurance and Reinsurance	10
IV.	Balance Sheet Details
	- Loss Reserve Rollforward	11
	- Reinsurance Recoverable Analysis	12-15
	- Investment Portfolio	16
	- Net Realized and Unrealized Gains (Losses)	17
	- Capital Structure	18
	- Computation of Basic and Diluted Earnings Per Share	19
V.	Other Disclosures
	- Non-GAAP Financial Measures	20
	- Book Value per Ordinary Share	21
	- Comprehensive Income	22
	- Glossary	23

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

	Three months ended March 31
	2007			2006			% Change 1Q-07 vs. 1Q-06
Gross premiums written	$	4,496		$	4,511		0	%
Net premiums written	$	3,270		$	3,310		-1	%
Net premiums earned	$	3,082		$	2,805		10	%
Net investment income	$	451		$	369		22	%
Net income	$	701		$	489		43	%
Income excluding net realized gains (losses) and cumulative effect(1)	$	663		$	477		39	%
Comprehensive income	$	763		$	407		87	%
Operating cash flow	$	1,236		$	1,086		14	%
Combined ratio
Loss and loss expense ratio		62.1	%		61.2	%
Underwriting and administrative expense ratio		25.0	%		29.4	%
Combined ratio		87.1	%		90.6	%
Annualized ROE*		18.5	%		16.3	%
Annualized ROE, excluding FAS 115*		19.4	%		16.7	%
Effective tax rate on income excluding net realized gains (losses) and cumulative effect		19	%		22	%
Diluted earnings per share
Income excluding net realized gains (losses) and cumulative effect(1)	$	1.98		$	1.43		38	%
Net income	$	2.10		$	1.46		44	%
Book value per ordinary share	$	43.87		$	35.68		23	%
Tangible book value per ordinary share	$	35.55		$	27.37		30	%
Weighted average basic ordinary shares outstanding		324.1			321.1
Weighted average diluted ordinary shares outstanding		328.9			325.7
Debt/ total capitalization		14.8	%		14.5	%

(1) See page 20 Non-GAAP Financial Measures.

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

Financial Highlights Page 1

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

ACE Limited Consolidated

	1Q-07			4Q-06			3Q-06			2Q-06			1Q-06			Full Year 2006
Property and Casualty
Gross premiums written	$	4,406		$	3,932		$	4,228		$	4,517		$	4,450		$	17,127
Net premiums written		3,182			2,786			2,721			3,000			3,249			11,756
Net premiums earned		2,994			2,948			3,019			2,840			2,744			11,551
Losses and loss expenses		1,860			1,824			1,818			1,748			1,680			7,070
Policy acquisition costs		406			424			430			423			412			1,689
Administrative expenses		344			353			345			332			391			1,421
P&C underwriting income	$	384		$	347		$	426		$	337		$	261		$	1,371
Life underwriting income excluding investment income		29			25			25			20			20			90
Net investment income		451			428			414			390			369			1,601
Net realized gains (losses)		16			15			(113	)		(7	)		7			(98	)
Interest expense		46			42			46			45			43			176
Other (income) expense		4			(16	)		(2	)		(12	)		(5	)		(35	)
Income tax expense (benefit)		129			124			130			134			134			522
Cumulative effect of a change in accounting principle, net of tax		—			—			—			—			4			4
Net income	$	701		$	665		$	578		$	573		$	489		$	2,305
Net realized gains (losses)		16			15			(113	)		(7	)		7			(98	)
Tax expense (benefit) on net realized gains (losses)		(22	)		(7	)		(39	)		(1	)		(1	)		(48	)
Cumulative effect of a change in accounting principle, net of tax		—			—			—			—			4			4
Income excluding net realized gains (losses) and cumulative effect(2)	$	663		$	643		$	652		$	579		$	477		$	2,351
% Change versus prior year period (1)
Property and Casualty net premiums written		-2	%		9	%		-4	%		5	%		-2	%		2	%
Property and Casualty net premiums earned		9	%		6	%		0	%		-1	%		-3	%		0	%
Other ratios
Net premiums written/gross premiums written		72	%		71	%		64	%		66	%		73	%		69	%
Effective tax rate on income excluding net realized gains (losses) and cumulative effect		19	%		17	%		21	%		19	%		22	%		20	%
Combined ratio(1)
Loss and loss expense ratio		62.1	%		61.8	%		60.2	%		61.6	%		61.2	%		61.2	%
Policy acquisition cost ratio		13.5	%		14.4	%		14.2	%		14.9	%		15.1	%		14.6	%
Administrative expense ratio		11.5	%		12.0	%		11.4	%		11.7	%		14.3	%		12.3	%
Combined ratio		87.1	%		88.2	%		85.8	%		88.2	%		90.6	%		88.1	%
Large losses and other items(1)
Catastrophe and other large losses (before tax)	$	34		$	6		$	6		$	2		$	3		$	17
Prior period development - unfavorable (favorable)	$	(18	)	$	17		$	17		$	(14	)	$	(32	)	$	(12	)

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

(2) See page 20 Non-GAAP Financial Measures.

Consolidated Results Page 2

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

	March 31 2007		December 31 2006
	(Unaudited)		(Audited)
Assets
Fixed maturities available for sale, at fair value	$	29,934	$	28,540
Fixed maturities held to maturity, at amortized cost		3,060		3,047
Equity securities, at fair value		1,772		1,713
Short-term investments, at fair value		2,658		2,456
Other investments		896		845
Total investments		38,320		36,601
Cash		639		565
Securities lending collateral		2,905		2,171
Insurance and reinsurance balances receivable		3,689		3,580
Reinsurance recoverable		14,374		14,580
Deferred policy acquisition costs		1,133		1,077
Prepaid reinsurance premiums		1,621		1,586
Goodwill		2,731		2,731
Deferred tax assets		1,192		1,165
Investments in partially owned insurance companies		804		789
Other assets		2,366		2,290
Total assets	$	69,774	$	67,135
Liabilities
Unpaid losses and loss expenses	$	35,813	$	35,517
Unearned premiums		6,670		6,437
Future policy benefits for life and annuity contracts		521		518
Insurance and reinsurance balances payable		2,511		2,449
Deposit liabilities		327		335
Securities lending payable		2,905		2,171
Payable for securities purchased		1,338		1,286
Accounts payable, accrued expenses and other liabilities		1,514		1,541
Income taxes payable		265		156
Short-term debt		581		578
Long-term debt		2,061		1,560
Trust preferred securities		309		309
Total liabilities		54,815		52,857
Shareholders’ equity
Total shareholders’ equity, excl. AOCI		14,181		13,562
Accumulated other comprehensive income (AOCI)		778		716
Total shareholders’ equity		14,959		14,278
Total liabilities and shareholders’ equity	$	69,774	$	67,135
Book value per ordinary share(1)	$	43.87	$	42.03
Tangible book value per ordinary share(1)	$	35.55	$	33.66

(1) See page 20 Non-GAAP Financial Measures.

Consol Bal Sheet Page 3

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

ACE Limited Consolidated

	1Q-07		% of Total Consolidated		1Q-06		% of Total Consolidated		% Change 1Q-07 vs. 1Q-06
Net premiums written
Property and all other	$	1,003	30	%	$	1,034	31	%	-3	%
Casualty		1,759	54	%		1,848	56	%	-5	%
Personal accident		420	13	%		367	11	%	14	%
Total P&C		3,182	97	%		3,249	98	%	-2	%
Life		88	3	%		61	2	%	44	%
Total Consolidated	$	3,270	100	%	$	3,310	100	%	-1	%
Net premiums earned
Property and all other	$	853	27	%	$	817	29	%	4	%
Casualty		1,747	57	%		1,591	57	%	10	%
Personal accident		394	13	%		336	12	%	17	%
Total P&C		2,994	97	%		2,744	98	%	9	%
Life		88	3	%		61	2	%	44	%
Total Consolidated	$	3,082	100	%	$	2,805	100	%	10	%

Line of Business Page 4

	ACE Limited
	Consolidating Statement of Operations
	Three months ended March 31, 2007 and 2006
	(in millions of U.S. dollars)
	(Unaudited)

	Insurance - North American			Insurance - Overseas General			Global Reinsurance			Corporate & Other			Consolidated P&C			Life Insurance & Reinsurance			ACE Consolidated
March 31, 2007
Gross premiums written	$	2,269		$	1,659		$	478		$	—		$	4,406		$	90		$	4,496
Net premiums written		1,514			1,192			476			—			3,182			88			3,270
Net premiums earned		1,539			1,112			343			—			2,994			88			3,082
Losses and loss expenses		1,111			564			185			—			1,860			—			1,860
Life and annuity benefits		—			—			—			—			—			36			36
Policy acquisition costs		116			224			66			—			406			11			417
Administrative expenses		133			162			17			32			344			12			356
Underwriting income (loss)		179			162			75			(32	)		384			29			413
Net investment income		241			104			66			28			439			12			451
Net realized gains (losses)		37			(26	)		6			3			20			(4	)		16
Interest expense		—			—			—			46			46			—			46
Other (income) expense		9			3			1			(9	)		4			—			4
Income tax expense (benefit)		128			40			7			(44	)		131			(2	)		129
Net income		320			197			139			6			662			39			701
Net realized gains (losses)		37			(26	)		6			3			20			(4	)		16
Tax expense (benefit) on net realized gains (losses)		15			(8	)		(1	)		(28	)		(22	)		—			(22	)
Income (loss) excluding net realized gains (losses)(1)	$	298		$	215		$	132		$	(25	)	$	620		$	43		$	663
March 31, 2006
Gross premiums written	$	2,262		$	1,584		$	604		$	—		$	4,450		$	61		$	4,511
Net premiums written		1,503			1,146			600			—			3,249			61			3,310
Net premiums earned		1,334			1,039			371			—			2,744			61			2,805
Losses and loss expenses		916			566			197			1			1,680			—			1,680
Life and annuity benefits		—			—			—			—			—			28			28
Policy acquisition costs		144			194			74			—			412			6			418
Administrative expenses		116			145			14			116			391			7			398
Underwriting income (loss)		158			134			86			(117	)		261			20			281
Net investment income		203			85			48			23			359			10			369
Net realized gains (losses)		(6	)		4			(6	)		23			15			(8	)		7
Interest expense		—			—			—			43			43			—			43
Other (income) expense		(1	)		6			3			(13	)		(5	)		—			(5	)
Income tax expense (benefit)		94			56			12			(27	)		135			(1	)		134
Cumulative effect of a change in accounting principle, net of tax		—			—			—			4			4			—			4
Net income (loss)		262			161			113			(70	)		466			23			489
Net realized gains (losses)		(6	)		4			(6	)		23			15			(8	)		7
Tax expense (benefit) on net realized gains (losses)		(2	)		2			—			(1	)		(1	)		—			(1	)
Cumulative effect of a change in accounting principle, net of tax		—			—			—			4			4			—			4
Income (loss) excluding net realized gains (losses)(1)	$	266		$	159		$	119		$	(98	)	$	446		$	31		$	477

(1) See page 20 Non-GAAP Financial Measures.

Segment 2007 Qtr Page 5

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

Insurance - North American

	1Q-07			4Q-06			3Q-06			2Q-06			1Q-06			Full Year 2006
Gross premiums written	$	2,269		$	2,236		$	2,550		$	2,615		$	2,262		$	9,663
Net premiums written		1,514			1,476			1,459			1,502			1,503			5,940
Net premiums earned		1,539			1,471			1,547			1,367			1,334			5,719
Losses and loss expenses		1,111			1,054			1,090			966			916			4,026
Policy acquisition costs		116			122			142			122			144			530
Administrative expenses		133			132			129			125			116			502
Underwriting income		179			163			186			154			158			661
Net investment income		241			233			228			212			203			876
Net realized gains (losses)		37			(11	)		(34	)		(32	)		(6	)		(83	)
Interest expense		—			—			—			—			—			—
Other (income) expense		9			(13	)		11			1			(1	)		(2	)
Income tax expense (benefit)		128			89			74			95			94			352
Net income		320			309			295			238			262			1,104
Net realized gains (losses)		37			(11	)		(34	)		(32	)		(6	)		(83	)
Tax expense (benefit) on net realized gains (losses)		15			(16	)		(32	)		(5	)		(2	)		(55	)
Income excluding net realized gains (losses)(1)	$	298		$	304		$	297		$	265		$	266		$	1,132
Combined ratio
Loss and loss expense ratio		72.2	%		71.7	%		70.4	%		70.7	%		68.7	%		70.4	%
Policy acquisition cost ratio		7.5	%		8.3	%		9.1	%		8.9	%		10.9	%		9.2	%
Administrative expense ratio		8.7	%		8.9	%		8.4	%		9.1	%		8.7	%		8.8	%
Combined ratio		88.4	%		88.9	%		87.9	%		88.7	%		88.3	%		88.4	%
Large losses and other items (before tax)
Catastrophe and other large losses (before tax)	$	—		$	—		$	—		$	—		$	—		$	—
Prior period development - unfavorable (favorable)	$	10		$	20		$	30		$	11		$	4		$	65
% Change versus prior year period
Net premiums written		1	%		16	%		-4	%		5	%		-5	%		2	%
Net premiums earned		15	%		9	%		-3	%		-3	%		-3	%		0	%
Other ratios
Net premiums written/gross premiums written		67	%		66	%		57	%		57	%		66	%		61	%

(1) See page 20 Non-GAAP Financial Measures.

Insurance-North American Page 6

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

Insurance - Overseas General

	1Q-07			4Q-06			3Q-06			2Q-06			1Q-06			Full Year 2006
Gross premiums written	$	1,659		$	1,441		$	1,387		$	1,485		$	1,584		$	5,897
Net premiums written		1,192			1,059			978			1,083			1,146			4,266
Net premiums earned		1,112			1,097			1,099			1,086			1,039			4,321
Losses and loss expenses		564			576			532			585			566			2,259
Policy acquisition costs		224			226			217			219			194			856
Administrative expenses		162			157			155			152			145			609
Underwriting income		162			138			195			130			134			597
Net investment income		104			97			97			91			85			370
Net realized gains (losses)		(26	)		8			(32	)		4			4			(16	)
Interest expense		—			—			—			—			—			—
Other (income) expense		3			7			(3	)		—			6			10
Income tax expense (benefit)		40			43			63			44			56			206
Net income		197			193			200			181			161			735
Net realized gains (losses)		(26	)		8			(32	)		4			4			(16	)
Tax expense (benefit) on net realized gains (losses)		(8	)		2			(6	)		5			2			3
Income excluding net realized gains (losses)(1)	$	215		$	187		$	226		$	182		$	159		$	754
Combined ratio
Loss and loss expense ratio		50.7	%		52.5	%		48.4	%		53.8	%		54.5	%		52.3	%
Policy acquisition cost ratio		20.2	%		20.6	%		19.8	%		20.1	%		18.7	%		19.8	%
Administrative expense ratio		14.5	%		14.3	%		14.0	%		14.1	%		13.9	%		14.1	%
Combined ratio		85.4	%		87.4	%		82.2	%		88.0	%		87.1	%		86.2	%
Large losses and other items
Catastrophe and other large losses (before tax)	$	15		$	—		$	3		$	—		$	—		$	3
Prior period development - unfavorable (favorable)	$	(21	)	$	4		$	(16	)	$	(21	)	$	(39	)	$	(72	)
% Change versus prior year period
Net premiums written		4	%		4	%		5	%		2	%		-4	%		2	%
Net premiums earned		7	%		5	%		7	%		1	%		-4	%		2	%
Other ratios
Net premiums written/gross premiums written		72	%		73	%		71	%		73	%		72	%		72	%

(1) See page 20 Non-GAAP Financial Measures.

Insurance-Overseas General Page 7

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

Global Reinsurance

	1Q-07			4Q-06			3Q-06			2Q-06			1Q-06			Full Year 2006
Gross premiums written	$	478		$	255		$	291		$	417		$	604		$	1,567
Net premiums written		476			251			284			415			600			1,550
Net premiums earned		343			380			373			387			371			1,511
Losses and loss expenses		185			194			196			197			197			784
Policy acquisition costs		66			76			71			82			74			303
Administrative expenses		17			14			16			18			14			62
Underwriting income		75			96			90			90			86			362
Net investment income		66			62			56			55			48			221
Net realized gains (losses)		6			17			2			(3	)		(6	)		10
Interest expense		—			—			—			—			—			—
Other (income) expense		1			2			1			2			3			8
Income tax expense (benefit)		7			9			9			8			12			38
Net income		139			164			138			132			113			547
Net realized gains (losses)		6			17			2			(3	)		(6	)		10
Tax expense (benefit) on net realized gains (losses)		(1	)		1			(1	)		(1	)		—			(1	)
Income excluding net realized gains (losses)(1)	$	132		$	148		$	135		$	134		$	119		$	536
Combined ratio
Loss and loss expense ratio		53.8	%		50.9	%		52.5	%		51.0	%		53.0	%		51.8	%
Policy acquisition cost ratio		19.2	%		20.1	%		19.0	%		21.2	%		20.0	%		20.1	%
Administrative expense ratio		5.0	%		3.7	%		4.2	%		4.6	%		3.8	%		4.1	%
Combined ratio		78.0	%		74.7	%		75.7	%		76.8	%		76.8	%		76.0	%
Large losses and other items
Catastrophe and other large losses (before tax)	$	19		$	6		$	3		$	2		$	3		$	14
Prior period development - unfavorable (favorable)	$	(7	)	$	(7	)	$	3		$	(4	)	$	3		$	(5	)

(1) See page 20 Non-GAAP Financial Measures.

Global Reinsurance Page 8

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

Global Reinsurance

	1Q-07			4Q-06			3Q-06			2Q-06			1Q-06			Full Year 2006
% Change versus prior year period
Net premiums written		-21	%		-9	%		-25	%		14	%		14	%		0	%
Net premiums earned		-8	%		-4	%		-9	%		4	%		4	%		-1	%
Other ratios
Net premiums written/gross premiums written		100	%		98	%		98	%		100	%		99	%		99	%
Global Reinsurance - By Division
	1Q-07			4Q-06			3Q-06			2Q-06			1Q-06			Full Year 2006
Gross premiums written
ACE Tempest Re Europe	$	112		$	58		$	60		$	56		$	104		$	278
ACE Tempest Re USA		188			181			178			249			295			903
ACE Tempest Re Bermuda		174			16			53			112			205			386
ACE Tempest Re Canada		4			—			—			—			—			—
Total	$	478		$	255		$	291		$	417		$	604		$	1,567
Net premiums written
ACE Tempest Re Europe	$	110		$	57		$	58		$	53		$	101		$	269
ACE Tempest Re USA		188			181			177			249			295			902
ACE Tempest Re Bermuda		174			13			49			113			204			379
ACE Tempest Re Canada		4			—			—			—			—			—
Total	$	476		$	251		$	284		$	415		$	600		$	1,550
Net premiums earned
ACE Tempest Re Europe	$	67		$	68		$	66		$	68		$	70		$	272
ACE Tempest Re USA		187			216			210			231			215			872
ACE Tempest Re Bermuda		88			96			97			88			86			367
ACE Tempest Re Canada		1			—			—			—			—			—
Total	$	343		$	380		$	373		$	387		$	371		$	1,511
Net premiums written/gross premiums written
ACE Tempest Re Europe		98	%		98	%		97	%		95	%		97	%		97	%
ACE Tempest Re USA		100	%		100	%		99	%		100	%		100	%		100	%
ACE Tempest Re Bermuda		100	%		81	%		92	%		101	%		100	%		98	%
ACE Tempest Re Canada		100	%		NM			NM			NM			NM			NM
Total NPW/GPW		100	%		98	%		98	%		100	%		99	%		99	%

Global Reinsurance 2 Page 9

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

Life Insurance and Reinsurance

	1Q-07			4Q-06			3Q-06			2Q-06			1Q-06			Full Year 2006
Gross premiums written	$	90		$	78		$	69		$	66		$	61		$	274
Net premiums written		88			78			69			66			61			274
Net premiums earned		88			78			69			66			61			274
Life and annuity benefits		36			32			29			34			28			123
Policy acquisition costs		11			9			7			4			6			26
Administrative expenses		12			12			8			8			7			35
Net investment income		12			12			11			9			10			42
Life underwriting income(1)		41			37			36			29			30			132
Net realized gains (losses)		(4	)		(13	)		(14	)		(1	)		(8	)		(36	)
Income tax expense (benefit)		(2	)		(5	)		—			—			(1	)		(6	)
Net income		39			29			22			28			23			102
Net realized gains (losses)		(4	)		(13	)		(14	)		(1	)		(8	)		(36	)
Tax expense (benefit) on net realized gains (losses)		—			—			—			—			—			—
Income excluding net realized gains (losses)(2)	$	43		$	42		$	36		$	29		$	31		$	138

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

(2) See page 20 Non-GAAP Financial Measures.

Life Page 10

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

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

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

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

Loss Reserve Rollforward Page 11

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

Net Reinsurance Recoverable by Division

	March 31 2007			December 31 2006
Reinsurance recoverable on paid losses and loss expenses
Active operations	$	922		$	1,013
Brandywine		242			251
Westchester Run-off		42			36
Other Run-off		17			16
Total	$	1,223		$	1,316
Reinsurance recoverable on unpaid losses and loss expenses
Active operations	$	9,528		$	9,502
Brandywine		3,425			3,535
Westchester Run-off		667			676
Other Run-off		202			200
Total	$	13,822		$	13,913
Gross reinsurance recoverable
Active operations	$	10,450		$	10,515
Brandywine		3,667			3,786
Westchester Run-off		709			712
Other Run-off		219			216
Total	$	15,045		$	15,229
Provision for uncollectible reinsurance
Active operations	$	(478	)	$	(450	)
Brandywine		(169	)		(172	)
Westchester Run-off		(7	)		(7	)
Other Run-off		(17	)		(20	)
Total	$	(671	)	$	(649	)
Net reinsurance recoverable
Active operations	$	9,972		$	10,065
Brandywine		3,498			3,614
Westchester Run-off		702			705
Other Run-off		202			196
Total	$	14,374		$	14,580

Reinsurance Recoverable Page 12

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

Reinsurance Recoverable for Active Operations

	December 31, 2006
	Recoverable		Provision		% of Gross
Categories
Top 10 reinsurers	$	5,266	$	64	1.2	%
Other reinsurers balances >$20 million		2,277		53	2.3	%
Other reinsurers balances <$20 million		561		53	9.4	%
Mandatory pools and government agencies		590		3	0.5	%
Structured settlements		220		1	0.5	%
Captives		1,238		1	0.1	%
Other(1)		363		275	75.8	%
Total	$	10,515	$	450	4.3	%

At December 31, 2006, $7.7 billion of the active operations’ recoverables were from rated reinsurers, of which 95.0% were rated the equivalent of A- or better by internationally recognized rating agencies. The Company held collateral of $3.2 billion, of which $1.9 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 (AIG) Berkshire Hathaway Insurance Group Chubb Insurance Group Everest Re Group Federal Crop Insurance Corp HDI Haftpflichtverband Der Deutschen     Industrie Vag (Hannover) Lloyd’s Of London Munich Re Group Swiss Re Group XL Capital Group	AGRI General Ins Co AIOI Insurance Group Allianz Allied World Assurance Group Arch Capital Aspen Insurance Holdings Ltd AXA CIGNA Converium Group Dow Chemical Co Electric Insurance Company Endurance Specialty Holdings Ltd Equitas Fairfax Financial Gerling Global Group ING Groep NV	IRB - Brasil Resseguros S.A. Group Liberty Mutual Insurance Companies Montpelier Reinsurance Ltd Partner Re Platinum Underwriters Renaissance Re Holdings Ltd Royal & Sun Alliance Insurance Group SCOR Group Sompo Japan Group Tawa UK Ltd Toa Reinsurance Company The Travelers Companies, Inc. White Mountains 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 provision for uncollectible reinsurance associated with Other considers the credit quality of the reinsurer, and whether we have received collateral or other credit protections such as 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 13

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

Consolidated Reinsurance Recoverable

	December 31, 2006
	Recoverable		Provision		% of Gross
Categories
Top 10 reinsurers	$	8,075	$	88	1.1	%
Other reinsurers balances >$20 million		3,468		146	4.2	%
Other reinsurers balances <$20 million		681		71	10.4	%
Mandatory pools and government agencies		602		3	0.5	%
Structured settlements		522		2	0.4	%
Captives		1,315		1	0.1	%
Other(1)		566		338	59.7	%
Total	$	15,229	$	649	4.3	%

At December 31, 2006, $11.6 billion of ACE Limited 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 (AIG) Berkshire Hathaway Insurance     Group Chubb Insurance Group Equitas Everest Re Group HDI Haftpflichtverband Der     Deutschen Industrie Vag     (Hannover) Lloyd’s Of London Munich Re Group Swiss Re Group XL Capital Group	AGRI General Ins Co AIOI Insurance Group Allianz Allied World Assurance Group Allmerica Financial Corp Allstate Group Arch Capital Aspen Insurance Holdings Ltd AVIVA AXA CIGNA CNA Insurance Companies Converium Group Dominion Insurance Co Ltd Dow Chemical Co Dukes Place Holdings	Electric Insurance Company Endurance Specialty Holdings Ltd Enstar Group Ltd Fairfax Financial Federal Crop Insurance Corp FM Global Group Gerling Global Group Hartford Insurance Group ING Groep NV IRB - Brasil Resseguros S.A.     Group Liberty Mutual Insurance     Companies Millea Holdings Montpelier Reinsurance Ltd Partner Re	Platinum Underwriters PMA Capital Corp Renaissance Re Holdings Ltd Royal & Sun Alliance     Insurance Group SCOR Group Sompo Japan Group Tawa UK Ltd Toa Reinsurance Company The Travelers Companies, Inc. Trenwick Group White Mountains 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 provision for uncollectible reinsurance associated with Other considers the credit quality of the reinsurer, and whether we have received collateral or other credit protections such as 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 14

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

Detail on Reinsurance Recoverable on Paid Losses and Loss Expenses

	General Collections (1)			Other (2)			Total
Gross balance at December 31, 2006	$	932		$	384		$	1,316
Provision at 12/31/06		53			202			255
% of gross		5.7	%		52.6	%		19.4	%
Net balance at December 31, 2006	$	879		$	182		$	1,061
Gross balance at March 31, 2007	$	865		$	358		$	1,223
Provision at 3/31/07		56			216			272
% of gross		6.5	%		60.3	%		22.2	%
Net balance at March 31, 2007(3)	$	809		$	142		$	951

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

Reinsurance Recoverable 4 Page 15

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

	March 31 2007			December 31 2006
Market Value
Fixed maturities available for sale	$	29,934		$	28,540
Fixed maturities held to maturity		3,039			3,015
Short-term investments		2,658			2,456
Total	$	35,631		$	34,011
Asset Allocation by Market Value
Treasury	$	1,689		$	1,322
Agency		2,223			2,207
Corporate		7,473			7,394
Mortgage-backed securities		11,925			11,346
Asset-backed securities		1,772			2,020
Municipal		1,157			809
Non-U.S.		6,734			6,457
Short-term investments		2,658			2,456
Total	$	35,631		$	34,011
Credit Quality by Market Value
AAA	$	23,783		$	22,471
AA		3,095			2,725
A		3,582			3,909
BBB		2,610			2,498
BB		992			943
B		1,475			1,365
Other		94			100
Total	$	35,631		$	34,011
Cost/Amortized Cost
Fixed maturities available for sale	$	29,723		$	28,389
Fixed maturities held to maturity		3,060			3,047
Short-term investments		2,658			2,456
Subtotal		35,441			33,892
Equity securities		1,432			1,372
Other investments		687			661
Total	$	37,560		$	35,925
Avg. duration of fixed maturities, adjusted for int. rate swaps		3.3 years			3.3 years
Avg. market yield of fixed maturities		5.3	%		5.4	%
Avg. credit quality		AA			AA

Investments Page 16

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

	Three months ended March 31, 2007
	Net Realized Gains (Losses) (1)			Net Unrealized Gains (Losses)			Net Impact
Fixed maturities	$	(21	)	$	45		$	24
Equity securities		34			(1	)		33
Equity and fixed income derivatives		(7	)		—			(7	)
Foreign exchange gains (losses)		—			—			—
Other		10			20			30
Sub-total		16			64			80
Other FAS 133 adjustments		—			—			—
Total gains (losses)		16			64			80
Income tax expense (benefit)		(22	)		13			(9	)
Net gains (losses)	$	38		$	51		$	89
(1)    The quarter includes impairments of $37M for fixed maturities, $1M for equities and $nil for other investments.
	Three months ended March 31, 2006
	Net Realized Gains (Losses) (2)			Net Unrealized Gains (Losses)			Net Impact
Fixed maturities	$	(44	)	$	(193	)	$	(237	)
Equity securities		43			48			91
Equity and fixed income derivatives		11			—			11
Foreign exchange gains (losses)		(4	)		—			(4	)
Other		(1	)		12			11
Total inv. portfolio gains (losses)		5			(133	)		(128	)
Other FAS 133 adjustments		2			—			2
Total gains (losses)		7			(133	)		(126	)
Income tax expense (benefit)		(1	)		(35	)		(36	)
Net gains (losses)	$	8		$	(98	)	$	(90	)
(2)    The quarter includes impairments of $24M for fixed maturities, $2M for equities and $5M for other investments.

Investment Gains (Losses) Page 17

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

	March 31 2007			December 31 2006			December 31 2005
Total short-term debt	$	581		$	578		$	300
Total long-term debt		2,061			1,560			1,811
Total debt		2,642			2,138			2,111
Total trust preferred securities		309			309			309
Perpetual preferred shares		557			557			557
Ordinary shareholders’ equity		14,402			13,721			11,255
Total shareholders’ equity	$	14,959		$	14,278		$	11,812
Total capitalization	$	17,910		$	16,725		$	14,232
Tangible shareholders’ equity(1)	$	12,228		$	11,547		$	9,109
Leverage ratios
Debt/ total capitalization		14.8	%		12.8	%		14.8	%
Debt plus trust preferred secutities/ total capitalization		16.5	%		14.6	%		17.0	%
Debt/ tangible equity		21.6	%		18.5	%		23.2	%
Debt plus trust preferred securities/ tangible equity		24.1	%		21.2	%		26.6	%
Debt plus total preferred stock/ total capitalization		19.6	%		18.0	%		20.9	%

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

Capital Structure Page 18

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

	Three months ended March 31
	2007			2006
Numerator
Income excluding net realized gains (losses) and cumulative effect(1)	$	663		$	477
Perpetual preferred dividend		(11	)		(11	)
Income to ordinary shares, excl. net realized gains (losses) and cumulative effect		652			466
Net realized gains (losses), net of income tax		38			8
Net income available to the holders of ordinary shares excluding cumulative effect		690			474
Cumulative effect of a change in accounting principle, net of tax		—			4
Net income available to the holders of ordinary shares	$	690		$	478
Rollforward of Ordinary Shares
Ordinary Shares - beginning of period		326,455,468			323,322,586
Issued under employee stock purchase plan		104,162			74,598
Shares (cancelled) granted		1,394,898			1,108,012
Issued for option exercises		354,697			637,864
Ordinary Shares - end of period		328,309,225			325,143,060
Denominator
Weighted average shares outstanding		324,079,146			321,090,179
Effect of other dilutive securities		4,818,859			4,636,773
Adj. wtd. avg. shares outstanding and assumed conversions		328,898,005			325,726,952
Basic earnings per share
Income excluding net realized gains (losses) and cumulative effect(1)	$	2.01		$	1.46
Net realized gains (losses), net of income tax		0.12			0.02
Cumulative effect of a change in accounting principle, net of tax		—			0.01
Net income	$	2.13		$	1.49
Diluted earnings per share
Income excluding net realized gains (losses) and cumulative effect(1)	$	1.98		$	1.43
Net realized gains (losses), net of income tax		0.12			0.02
Cumulative effect of a change in accounting principle, net of tax		—			0.01
Net income	$	2.10		$	1.46

(1) See page 20 Non-GAAP Financial Measures.

Earnings per share Page 19

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

Regulation G - Non-GAAP Financial Measures

In presenting our results, we have included and discussed certain non-GAAP measures. These non-GAAP measures, which may be defined differently by other companies, are important for an understanding of our overall results of operations. However, they should not be viewed as a substitute for measures determined in accordance with GAAP. A reconciliation of book value per share is provided on page 21.

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

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

	1Q-07			4Q-06			3Q-06			2Q-06			1Q-06			Full Year 2006
Net income, as reported	$	701		$	665		$	578		$	573		$	489		$	2,305
Net realized gains (losses)		16			15			(113	)		(7	)		7			(98	)
Income tax expense (benefit) on net realized gains (losses)		(22	)		(7	)		(39	)		(1	)		(1	)		(48	)
Cumulative effect of a change in accounting principle, net of tax		—			—			—			—			4			4
Income excluding net realized gains (losses) and cumulative effect	$	663		$	643		$	652		$	579		$	477		$	2,351

Reconciliation Non-GAAP Page 20

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

Reconciliation of Book Value per Ordinary Share

	March 31 2007			December 31 2006
Shareholders’ equity	$	14,959		$	14,278
Proceeds from issuance of perpetual preferred shares		(557	)		(557	)
Numerator for book value per share calculation		14,402			13,721
Less: goodwill		2,731			2,731
Numerator for tangible book value per share	$	11,671		$	10,990
Denominator		328,309,225			326,455,468
Book value per ordinary share	$	43.87		$	42.03
Tangible book value per ordinary share	$	35.55		$	33.66

Reconciliation Book Value Page 21

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

Consolidated Statement of Comprehensive Income

	1Q-07			4Q-06			3Q-06			2Q-06			1Q-06			Full Year 2006
Net income	$	701		$	665		$	578		$	573		$	489		$	2,305
Net unrealized appreciation (depreciation) on investments
Unrealized appreciation (depreciation) on investments		61			132			541			(266	)		(118	)		289
Reclassification adjustment for net realized gains (losses) included in net income		3			(6	)		82			3			(15	)		64
Change in cumulative translation adjustments		16			46			15			50			24			135
Change in minimum pension liability		—			29			(5	)		(3	)		(1	)		20
Income tax (expense) benefit related to other comprehensive income items		(18	)		(42	)		(117	)		18			28			(113	)
Other comprehensive income (loss)		62			159			516			(198	)		(82	)		395
Comprehensive income	$	763		$	824		$	1,094		$	375		$	407		$	2,700

Comprehensive Income Page 22

	ACE Limited
	Glossary

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

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

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

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

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

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

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

NM: Not meaningful.

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

P&C:Property and casualty.

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

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

Tangible equity:Shareholders’ equity less goodwill.

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

Glossary Page 23