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

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 continued adverse economic and insurance industry developments such as those of recent weeks, as well as 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, worldwide and national economic and stock market conditions, rating agency action, investment portfolio performance, possible terrorism or the outbreak and effects of war, integration of recent acquisitions, or unexpected effects or difficulties relating to the Company’s recent re-domestication to Switzerland. 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 and Income Excluding Net Realized Gains (Losses) by Line of Business	4
	- Consolidating Statement of Operations	5-6
	- Catastrophe Loss Charges	7
III.	Segment Results
	- Insurance - North American	8
	- Insurance - Overseas General	9
	- Global Reinsurance	10
	- Life Insurance and Reinsurance	11-12
IV.	Balance Sheet Details
	- Loss Reserve Rollforward	13
	- Reinsurance Recoverable Analysis	14 -16
	- Investment Portfolio	17 -24
	- Net Realized and Unrealized Gains (Losses)	25
	- Capital Structure	26 -27
	- Computation of Basic and Diluted Earnings Per Share	28
V.	Other Disclosures
	- Non-GAAP Financial Measures	29
	- Book Value per Common Share	30
	- Comprehensive Income	31
	- Glossary	32

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

	Three months ended September 30								Nine months ended September 30
	2008			2007			% Change 3Q-08 vs. 3Q-07		2008			2007			% Change YTD-08 vs. YTD-07
Gross premiums written	$	5,220		$	4,463		17	%	$	14,922		$	13,596		10	%
Net premiums written	$	3,276		$	2,800		17	%	$	10,028		$	9,152		10	%
Net premiums earned	$	3,609		$	3,150		15	%	$	9,977		$	9,240		8	%
Net investment income	$	520		$	492		6	%	$	1,541		$	1,414		9	%
Net income	$	54		$	656		-92	%	$	1,177		$	2,006		-41	%
Income excluding net realized gains (losses)(1)	$	504		$	692		-27	%	$	1,967		$	2,019		-3	%
Comprehensive income (loss)	$	(915	)	$	909		NM		$	(609	)	$	1,958		NM
Operating cash flow	$	1,058		$	1,484		-30	%	$	3,140		$	3,878		-20	%
Combined ratio
Loss and loss expense ratio		69.5	%		62.5	%				61.5	%		62.0	%
Underwriting and administrative expense ratio		28.4	%		26.0	%				28.9	%		25.8	%
Combined ratio		97.9	%		88.5	%				90.4	%		87.8	%
Annualized ROE*		12.7	%		18.1	%				16.5	%		18.1	%
Annualized ROE, excluding FAS 115*		12.2	%		18.6	%				16.2	%		18.8	%
Effective tax rate on income excluding net realized gains (losses)		13	%		17	%				17	%		18	%
Diluted earnings per share
Income excluding net realized gains (losses)(1)	$	1.51		$	2.06		-27	%	$	5.84		$	6.02		-3	%
Net income	$	0.16		$	1.95		-92	%	$	3.46		$	5.98		-42	%
Book value per common share	$	46.06		$	46.98		-2	%	$	46.06		$	46.98		-2	%
Tangible book value per common share	$	34.61		$	38.69		-11	%	$	34.61		$	38.69		-11	%
Weighted average basic common shares outstanding		329.0			325.2					328.3			324.7
Weighted average diluted common shares outstanding		333.0			330.6					332.7			330.1
Debt/total capitalization		17.6	%		11.6	%				17.6	%		11.6	%

(1) See page 29 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

	3Q-08			2Q-08			1Q-08			4Q-07			3Q-07			YTD 2008			YTD 2007			Full Year 2007
Consolidated Results Excluding Life Segment
Gross premiums written	$	4,839		$	4,866		$	4,304		$	4,035		$	4,363		$	14,009		$	13,314		$	17,349
Net premiums written		2,928			3,224			3,049			2,716			2,705			9,201			8,882			11,598
Net premiums earned		3,265			3,061			2,840			2,959			3,055			9,166			8,970			11,929
Losses and loss expenses		2,265			1,785			1,579			1,788			1,910			5,629			5,563			7,351
Future policy benefits		5			5			—			—			—			10			—			—
Policy acquisition costs		533			506			460			448			450			1,499			1,278			1,726
Administrative expenses		396			392			362			372			345			1,150			1,033			1,405
Underwriting income excluding life segment	$	66		$	373		$	439		$	351		$	350		$	878		$	1,096		$	1,447
Life underwriting income excluding investment income		45			41			16			16			30			102			89			105
Net investment income		520			532			489			504			492			1,541			1,414			1,918
Net realized gains (losses)		(510	)		(126	)		(353	)		(66	)		—			(989	)		5			(61	)
Interest expense		68			62			46			43			44			176			132			175
Other income (expense)(1)		(6	)		125			(15	)		(49	)		(32	)		104			(32	)		(81	)
Income tax expense (benefit)		(7	)		137			153			141			140			283			434			575
Net income	$	54		$	746		$	377		$	572		$	656		$	1,177		$	2,006		$	2,578
Net realized gains (losses)		(510	)		(126	)		(353	)		(66	)		—			(989	)		5			(61	)
Net realized gains (losses) in other income (expense) (1)		(23	)		120			(28	)		(57	)		(38	)		69			(38	)		(95	)
Tax expense (benefit) on net realized gains (losses)		(83	)		(14	)		(33	)		(2	)		(2	)		(130	)		(20	)		(22	)
Income excluding net realized gains (losses)(2)	$	504		$	738		$	725		$	693		$	692		$	1,967		$	2,019		$	2,712
% Change versus prior year period(3)
Net premiums written		11	%		8	%		-4	%		-3	%		-1	%		4	%		-1	%		-1	%
Net premiums earned		8	%		5	%		-5	%		0	%		1	%		2	%		4	%		3	%
Other ratios
Net premiums written/gross premiums written		61	%		66	%		71	%		67	%		62	%		66	%		67	%		67	%
Effective tax rate on income excluding net realized gains (losses)		13	%		17	%		20	%		17	%		17	%		17	%		18	%		18	%
Combined ratio(3)
Loss and loss expense ratio		69.5	%		58.5	%		55.6	%		60.4	%		62.5	%		61.5	%		62.0	%		61.6	%
Policy acquisition cost ratio		16.3	%		16.5	%		16.2	%		15.1	%		14.7	%		16.3	%		14.3	%		14.5	%
Administrative expense ratio		12.1	%		12.8	%		12.8	%		12.6	%		11.3	%		12.6	%		11.5	%		11.8	%
Combined ratio		97.9	%		87.8	%		84.6	%		88.1	%		88.5	%		90.4	%		87.8	%		87.9	%
																		��
Expense ratio		28.4	%		29.3	%		29.0	%		27.7	%		26.0	%		28.9	%		25.8	%		26.3	%
Expense ratio excluding A&H		24.2	%		25.4	%		25.9	%		24.4	%		22.8	%		25.1	%		22.7	%		23.1	%
Large losses and other items(3)
Catastrophe losses (before tax)	$	411		$	58		$	31		$	23		$	21		$	500		$	136		$	159
Prior period development - unfavorable (favorable)(4)	$	(277	)	$	(104	)	$	(137	)	$	(89	)	$	(70	)	$	(518	)	$	(128	)	$	(217	)
Loss and loss expense ratio excluding catastophe losses and prior period development		65.2	%		60.0	%		60.9	%		62.7	%		64.2	%		62.1	%		61.9	%		62.1	%

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

(2) See page 29 Non-GAAP Financial Measures.

(3) Presented excluding the Life segment to allow for comparison and analysis with earnings guidance. This is a non-GAAP measure.

(4) For Q1 08, prior period favorable development of $181 million less $44 million of profit share commission on Crop business settlement.

Consolidated Results Page 2

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

	September 30 2008			June 30 2008			March 31 2008		December 31 2007
	(Unaudited)			(Unaudited)			(Unaudited)		(Audited)
Assets
Fixed maturities available for sale, at fair value	$	33,158		$	34,870		$	32,619	$	33,184
Fixed maturities held to maturity, at amortized cost		2,881			2,932			2,913		2,987
Equity securities, at fair value		1,229			1,490			1,660		1,837
Short-term investments, at fair value		3,014			3,137			4,795		2,631
Other investments		1,529			1,414			1,243		1,140
Total investments		41,811			43,843			43,230		41,779
Cash		479			582			511		510
Securities lending collateral		2,050			2,118			2,361		2,109
Insurance and reinsurance balances receivable		3,499			4,086			3,748		3,540
Reinsurance recoverable on losses and loss expenses		14,225			13,839			13,937		14,354
Deferred policy acquisition costs		1,263			1,292			1,220		1,121
Value of business acquired		923			1,288			—		—
Prepaid reinsurance premiums		1,770			1,964			1,742		1,600
Goodwill and other intangible assets		3,817			3,612			2,879		2,838
Deferred tax assets		1,457			1,029			1,054		1,087
Investments in partially owned insurance companies		867			900			776		773
Other assets		2,994			3,223			2,461		2,379
Total assets	$	75,155		$	77,776		$	73,919	$	72,090
Liabilities
Unpaid losses and loss expenses	$	38,373		$	37,696		$	37,182	$	37,112
Unearned premiums		6,459			7,054			6,653		6,227
Future policy benefits		2,919			2,948			632		545
Insurance and reinsurance balances payable		2,754			2,991			2,756		2,843
Securities lending payable		2,095			2,118			2,361		2,109
Payable for securities purchased		1,008			1,802			1,391		1,798
Accounts payable, accrued expenses, and other liabilities		2,547			2,473			2,445		2,287
Short-term debt		333			1,050			1,341		372
Long-term debt		3,002			3,008			2,114		1,811
Trust preferred securities		309			309			309		309
Total liabilities		59,799			61,449			57,184		55,413
Shareholders’ equity
Total shareholders’ equity, excl. AOCI		16,379			16,381			16,261		15,908
Accumulated other comprehensive income (AOCI)		(1,023	)		(54	)		474		769
Total shareholders’ equity		15,356			16,327			16,735		16,677
Total liabilities and shareholders’ equity	$	75,155		$	77,776		$	73,919	$	72,090
Book value per common share(1)	$	46.06		$	48.99		$	48.65	$	48.89
Tangible book value per common share(1)	$	34.61		$	38.15		$	40.00	$	40.28

(1) See page 29 Non-GAAP Financial Measures.

Consol Bal Sheet Page 3

ACE Limited Consolidated Premiums and Income excluding Net Realized Gains (Losses) by Line of Business (in millions of U.S. dollars) (Unaudited)

ACE Limited Consolidated

	3Q-08		% of Total Consolidated		3Q-07		% of Total Consolidated		% Change 3Q-08 vs. 3Q-07		YTD 2008		% of Total Consolidated		YTD 2007		% of Total Consolidated		% Change YTD-08 vs. YTD-07
Net premiums written
Property and all other	$	1,048	32	%	$	941	34	%	11	%	$	3,232	32	%	$	2,952	32	%	9	%
Casualty		1,291	39	%		1,371	49	%	-6	%		4,253	42	%		4,697	51	%	-9	%
Subtotal		2,339	71	%		2,312	83	%	1	%		7,485	74	%		7,649	83	%	-2	%
Personal accident (A&H) (1)		815	25	%		393	14	%	107	%		2,193	22	%		1,233	14	%	78	%
Life(2)		122	4	%		95	3	%	28	%		350	4	%		270	3	%	30	%
Total Consolidated	$	3,276	100	%	$	2,800	100	%	17	%	$	10,028	100	%	$	9,152	100	%	10	%
Net premiums earned
Property and all other	$	1,190	33	%	$	1,066	34	%	12	%	$	3,030	30	%	$	2,848	31	%	6	%
Casualty		1,463	41	%		1,577	50	%	-7	%		4,435	45	%		4,908	53	%	-10	%
Subtotal		2,653	74	%		2,643	84	%	0	%		7,465	75	%		7,756	84	%	-4	%
Personal accident (A&H) (1)		845	23	%		412	13	%	105	%		2,181	22	%		1,214	13	%	80	%
Life(2)		111	3	%		95	3	%	17	%		331	3	%		270	3	%	23	%
Total Consolidated	$	3,609	100	%	$	3,150	100	%	15	%	$	9,977	100	%	$	9,240	100	%	8	%
Income excluding net realized gains (losses)
Property, casualty, and all other	$	353	70	%	$	569	82	%	-38	%	$	1,522	77	%	$	1,677	83	%	-9	%
Personal accident (A&H)(1)		118	23	%		76	11	%	55	%		340	17	%		209	10	%	63	%
Life(2)		33	7	%		47	7	%	-30	%		105	6	%		133	7	%	-21	%
Total Consolidated	$	504	100	%	$	692	100	%	-27	%	$	1,967	100	%	$	2,019	100	%	-3	%

(1) Consolidated A&H includes Combined Insurance which is reported in the Insurance - Overseas General and Life Insurance and Reinsurance segments.

(2) Excludes the North America A&H business from Combined Insurance which is included in the Life Insurance and Reinsurance segment.

Line of Business Page 4

ACE Limited
Consolidating Statement of Operations Three months ended September 30, 2008 and 2007 (in millions of U.S. dollars) (Unaudited)

	Insurance - North American			Insurance - Overseas General			Global Reinsurance			Corporate & Other			Consolidated Excluding Life Segment			Life Insurance & Reinsurance			ACE Consolidated
September 30, 2008
Gross premiums written	$	2,987		$	1,678		$	174		$	—		$	4,839		$	381		$	5,220
Net premiums written		1,461			1,293			174			—			2,928			348			3,276
Net premiums earned		1,583			1,425			257			—			3,265			344			3,609
Losses and loss expenses		1,356			731			178			—			2,265			104			2,369
Future policy benefits		—			5			—			—			5			86			91
Policy acquisition costs		160			329			44			—			533			48			581
Administrative expenses		132			217			14			33			396			61			457
Underwriting income (loss)		(65	)		143			21			(33	)		66			45			111
Net investment income		278			136			83			(17	)		480			40			520
Net realized gains (losses)		(284	)		(58	)		(2	)		14			(330	)		(180	)		(510	)
Interest expense		—			—			—			68			68			—			68
Other income (expense)		(3	)		(6	)		(1	)		6			(4	)		(2	)		(6	)
Income tax expense (benefit)		(7	)		10			9			(34	)		(22	)		15			(7	)
Net income (loss)		(67	)		205			92			(64	)		166			(112	)		54
Net realized gains (losses)		(284	)		(58	)		(2	)		14			(330	)		(180	)		(510	)
Net realized gains (losses) in other income (expense)		—			(5	)		—			(20	)		(25	)		2			(23	)
Tax expense (benefit) on net realized gains (losses)		(64	)		(16	)		(1	)		(2	)		(83	)		—			(83	)
Income (loss) excluding net realized gains (losses)(1)	$	153		$	252		$	93		$	(60	)	$	438		$	66		$	504
September 30, 2007
Gross premiums written	$	2,708		$	1,427		$	228		$	—		$	4,363		$	100		$	4,463
Net premiums written		1,449			1,041			215			—			2,705			95			2,800
Net premiums earned		1,595			1,141			319			—			3,055			95			3,150
Losses and loss expenses		1,138			611			161			—			1,910			—			1,910
Future policy benefits		—			—			—			—			—			39			39
Policy acquisition costs		150			240			60			—			450			13			463
Administrative expenses		129			170			14			32			345			13			358
Underwriting income (loss)		178			120			84			(32	)		350			30			380
Net investment income		260			116			69			33			478			14			492
Net realized gains (losses)		29			(5	)		25			2			51			(51	)		—
Interest expense		—			—			—			44			44			—			44
Other income (expense)		(1	)		12			—			(43	)		(32	)		—			(32	)
Income tax expense (benefit)		125			26			11			(19	)		143			(3	)		140
Net income (loss)		341			217			167			(65	)		660			(4	)		656
Net realized gains (losses)		29			(5	)		25			2			51			(51	)		—
Net realized gains (losses) in other income (expense)		—			11			—			(49	)		(38	)		—			(38	)
Tax expense (benefit) on net realized gains (losses)		—			(1	)		—			(1	)		(2	)		—			(2	)
Income (loss) excluding net realized gains (losses)(1)	$	312		$	210		$	142		$	(19	)	$	645		$	47		$	692

(1) See page 29 Non-GAAP Financial Measures.

Segment 2008 Qtr Page 5

ACE Limited Consolidating Statement of Operations Nine months ended September 30, 2008 and 2007 (in millions of U.S. dollars) (Unaudited)

	Insurance - North American			Insurance - Overseas General			Global Reinsurance			Corporate & Other			Consolidated Excluding Life Segment			Life Insurance & Reinsurance			ACE Consolidated
September 30, 2008
Gross premiums written	$	7,886		$	5,332		$	791		$	—		$	14,009		$	913		$	14,922
Net premiums written		4,332			4,081			788			—			9,201			827			10,028
Net premiums earned		4,302			4,087			777			—			9,166			811			9,977
Losses and loss expenses		3,187			2,039			403			—			5,629			214			5,843
Future policy benefits		—			10			—			—			10			233			243
Policy acquisition costs		450			897			152			—			1,499			119			1,618
Administrative expenses		398			598			43			111			1,150			143			1,293
Underwriting income (loss)		267			543			179			(111	)		878			102			980
Net investment income		829			387			235			(5	)		1,446			95			1,541
Net realized gains (losses)		(450	)		(199	)		(67	)		29			(687	)		(302	)		(989	)
Interest expense		—			—			—			176			176			—			176
Other income (expense)		(6	)		14			(2	)		104			110			(6	)		104
Income tax expense (benefit)		222			95			24			(83	)		258			25			283
Net income (loss)		418			650			321			(76	)		1,313			(136	)		1,177
Net realized gains (losses)		(450	)		(199	)		(67	)		29			(687	)		(302	)		(989	)
Net realized gains (losses) in other income (expense)		—			17			—			50			67			2			69
Tax expense (benefit) on net realized gains (losses)		(79	)		(45	)		(3	)		(3	)		(130	)		—			(130	)
Income (loss) excluding net realized gains (losses)(1)	$	789		$	787		$	385		$	(158	)	$	1,803		$	164		$	1,967
September 30, 2007
Gross premiums written	$	7,566		$	4,707		$	1,041		$	—		$	13,314		$	282		$	13,596
Net premiums written		4,460			3,399			1,023			—			8,882			270			9,152
Net premiums earned		4,589			3,394			987			—			8,970			270			9,240
Losses and loss expenses		3,265			1,789			509			—			5,563			—			5,563
Future policy benefits		—			—			—			—			—			108			108
Policy acquisition costs		394			694			190			—			1,278			36			1,314
Administrative expenses		392			494			47			100			1,033			37			1,070
Underwriting income (loss)		538			417			241			(100	)		1,096			89			1,185
Net investment income		758			331			201			84			1,374			40			1,414
Net realized gains (losses)		81			(58	)		24			14			61			(56	)		5
Interest expense		—			—			—			132			132			—			132
Other income (expense)		(11	)		8			(3	)		(26	)		(32	)		—			(32	)
Income tax expense (benefit)		368			124			25			(79	)		438			(4	)		434
Net income (loss)		998			574			438			(81	)		1,929			77			2,006
Net realized gains (losses)		81			(58	)		24			14			61			(56	)		5
Net realized gains (losses) in other income (expense)		—			11			—			(49	)		(38	)		—			(38	)
Tax expense (benefit) on net realized gains (losses)		23			(13	)		(1	)		(29	)		(20	)		—			(20	)
Income (loss) excluding net realized gains (losses)(1)	$	940		$	608		$	413		$	(75	)	$	1,886		$	133		$	2,019

(1) See page 29 Non-GAAP Financial Measures.

Segment 2008 YTD Page 6

ACE Limited Segment Results - Third Quarter Catastrophe Loss Charges (in millions of U.S. dollars) (Unaudited)

Third Quarter Catastrophe Loss Charges - 2008

Catastrophe Loss Charges- By Event	Insurance - North American			Insurance - Overseas General			Global Reinsurance			Total			Total impact after income tax
Gross loss										$	862
Net loss
Hurricane - Gustav	$	50		$	12		$	6		$	68		$	48
Hurricane - Ike		206			49			106			361			281
Other(1)		2			(12	)		(8	)		(18	)		(18	)
Total	$	258		$	49		$	104		$	411		$	311
Reinstatement premiums (earned) expensed	$	16		$	4		$	(13	)		7
Net premium (earned) expensed	$	16		$	4		$	(13	)	$	7
Total impact before income tax	$	274		$	53		$	91		$	418
Income tax benefit		(86	)		(17	)		(4	)		(107	)
Total impact after income tax	$	188		$	36		$	87		$	311
Effective tax rate		31	%		32	%		4	%		26	%

(1) Includes adjustments to catastrophe losses reported in the second quarter of 2008 related to Midwest floods.

Note: The catastrophe losses above include offshore energy gross and net losses of $32 million and $10 million primarily for hurricane Ike in Insurance - Overseas General.

Catastrophe Losses Page 7

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

Insurance - North American

	3Q-08			2Q-08			1Q-08			4Q-07			3Q-07			YTD 2008			YTD 2007			Full Year 2007
Gross premiums written	$	2,987		$	2,718		$	2,181		$	2,274		$	2,708		$	7,886		$	7,566		$	9,840
Net premiums written		1,461			1,511			1,360			1,373			1,449			4,332			4,460			5,833
Net premiums earned		1,583			1,365			1,354			1,418			1,595			4,302			4,589			6,007
Losses and loss expenses		1,356			962			869			1,004			1,138			3,187			3,265			4,269
Policy acquisition costs		160			129			161			121			150			450			394			515
Administrative expenses		132			131			135			138			129			398			392			530
Underwriting income (loss)		(65	)		143			189			155			178			267			538			693
Net investment income		278			282			269			276			260			829			758			1,034
Net realized gains (losses)		(284	)		(105	)		(61	)		44			29			(450	)		81			125
Other income (expense)		(3	)		(3	)		—			—			(1	)		(6	)		(11	)		(11	)
Income tax expense (benefit)		(7	)		106			123			100			125			222			368			468
Net income (loss)		(67	)		211			274			375			341			418			998			1,373
Net realized gains (losses)		(284	)		(105	)		(61	)		44			29			(450	)		81			125
Tax expense (benefit) on net realized gains (losses)		(64	)		(7	)		(8	)		(2	)		—			(79	)		23			21
Income excluding net realized gains (losses)(1)	$	153		$	309		$	327		$	329		$	312		$	789		$	940		$	1,269
Combined ratio
Loss and loss expense ratio		85.6	%		70.5	%		64.1	%		70.8	%		71.3	%		74.1	%		71.1	%		71.1	%
Policy acquisition cost ratio		10.1	%		9.5	%		11.9	%		8.6	%		9.4	%		10.4	%		8.6	%		8.6	%
Administrative expense ratio		8.4	%		9.5	%		10.0	%		9.7	%		8.1	%		9.3	%		8.5	%		8.8	%
Combined ratio		104.1	%		89.5	%		86.0	%		89.1	%		88.8	%		93.8	%		88.2	%		88.5	%
Large losses and other items (before tax)
Catastrophe losses (before tax)	$	258		$	22		$	15		$	—		$	—		$	295		$	16		$	16
Prior period development - unfavorable (favorable) (2)	$	(103	)	$	(23	)	$	(79	)	$	1		$	4		$	(205	)	$	8		$	9
Loss and loss expense ratio excluding catastrophe losses and prior period development		75.1	%		70.6	%		72.1	%		70.8	%		71.0	%		72.7	%		70.6	%		70.6	%
% Change versus prior year period
Net premiums written		1	%		1	%		-10	%		-7	%		-1	%		-3	%		0	%		-2	%
Net premiums earned		-1	%		-6	%		-12	%		-4	%		3	%		-6	%		8	%		5	%
Other ratios
Net premiums written/gross premiums written		49	%		56	%		62	%		60	%		54	%		55	%		59	%		59	%

(1) See page 29 Non-GAAP Financial Measures.

(2) For Q1 2008 prior period favorable development of $123 million less $44 million of profit share commission on Crop business settlement.

Insurance - North American Page 8

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

Insurance - Overseas General

	3Q-08 (2)			2Q-08 (2)			1Q-08			4Q-07			3Q-07			YTD 2008			YTD 2007			Full Year 2007
Gross premiums written	$	1,678		$	1,876		$	1,778		$	1,584		$	1,427		$	5,332		$	4,707		$	6,291
Net premiums written		1,293			1,443			1,345			1,169			1,041			4,081			3,399			4,568
Net premiums earned		1,425			1,439			1,223			1,229			1,141			4,087			3,394			4,623
Losses and loss expenses		731			715			593			631			611			2,039			1,789			2,420
Future policy benefits		5			5			—			—			—			10			—			—
Policy acquisition costs		329			323			245			269			240			897			694			963
Administrative expenses		217			208			173			175			170			598			494			669
Underwriting income		143			188			212			154			120			543			417			571
Net investment income		136			134			117			119			116			387			331			450
Net realized gains (losses)		(58	)		(58	)		(83	)		(11	)		(5	)		(199	)		(58	)		(69	)
Other income (expense)		(6	)		17			3			12			12			14			8			20
Income tax expense (benefit)		10			38			47			59			26			95			124			183
Net income		205			243			202			215			217			650			574			789
Net realized gains (losses)		(58	)		(58	)		(83	)		(11	)		(5	)		(199	)		(58	)		(69	)
Net realized gains (losses) in other income (expense)		(5	)		15			7			15			11			17			11			26
Tax expense (benefit) on net realized gains (losses)		(16	)		(7	)		(22	)		(1	)		(1	)		(45	)		(13	)		(14	)
Income excluding net realized gains (losses)(1)	$	252		$	279		$	256		$	210		$	210		$	787		$	608		$	818
Combined ratio
Loss and loss expense ratio		51.6	%		50.0	%		48.5	%		51.4	%		53.6	%		50.1	%		52.7	%		52.4	%
Policy acquisition cost ratio		23.1	%		22.4	%		20.0	%		21.8	%		21.1	%		22.0	%		20.5	%		20.8	%
Administrative expense ratio		15.2	%		14.5	%		14.2	%		14.3	%		14.8	%		14.6	%		14.5	%		14.5	%
Combined ratio		89.9	%		86.9	%		82.7	%		87.5	%		89.5	%		86.7	%		87.7	%		87.7	%
Large losses and other items
Catastrophe losses (before tax)	$	49		$	25		$	15		$	13		$	8		$	89		$	81		$	94
Prior period development - unfavorable (favorable)	$	(121	)	$	(54	)	$	(44	)	$	(76	)	$	(64	)	$	(219	)	$	(116	)	$	(192	)
Loss and loss expense ratio excluding catastophe losses and prior period development		56.7	%		52.0	%		50.9	%		56.5	%		58.5	%		53.3	%		53.6	%		54.4	%
% Change versus prior year period
Net premiums written		24	%		24	%		13	%		10	%		6	%		20	%		6	%		7	%
Net premiums earned		25	%		26	%		10	%		12	%		4	%		20	%		5	%		7	%
Other ratios
Net premiums written/gross premiums written		77	%		77	%		76	%		74	%		73	%		77	%		72	%		73	%

(1) See page 29 Non-GAAP Financial Measures.

(2) Includes the International operations of Combined Insurance.

Insurance - Overseas General Page 9

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

Global Reinsurance

	3Q-08			2Q-08			1Q-08			4Q-07			3Q-07			YTD 2008			YTD 2007			Full Year 2007
Gross premiums written	$	174		$	272		$	345		$	177		$	228		$	791		$	1,041		$	1,218
Net premiums written		174			270			344			174			215			788			1,023			1,197
Net premiums earned		257			257			263			312			319			777			987			1,299
Losses and loss expenses		178			108			117			155			161			403			509			664
Policy acquisition costs		44			54			54			58			60			152			190			248
Administrative expenses		14			14			15			17			14			43			47			64
Underwriting income		21			81			77			82			84			179			241			323
Net investment income		83			79			73			73			69			235			201			274
Net realized gains (losses)		(2	)		(20	)		(45	)		(3	)		25			(67	)		24			21
Other income (expense)		(1	)		(1	)		—			(1	)		—			(2	)		(3	)		(4	)
Income tax expense (benefit)		9			11			4			7			11			24			25			32
Net income		92			128			101			144			167			321			438			582
Net realized gains (losses)		(2	)		(20	)		(45	)		(3	)		25			(67	)		24			21
Tax expense (benefit) on net realized gains (losses)		(1	)		—			(2	)		(1	)		—			(3	)		(1	)		(2	)
Income excluding net realized gains (losses)(1)	$	93		$	148		$	144		$	146		$	142		$	385		$	413		$	559
Combined ratio
Loss and loss expense ratio		69.2	%		42.1	%		44.5	%		49.8	%		50.6	%		51.9	%		51.6	%		51.1	%
Policy acquisition cost ratio		16.9	%		21.0	%		20.6	%		18.3	%		18.8	%		19.5	%		19.3	%		19.1	%
Administrative expense ratio		5.4	%		5.5	%		5.7	%		5.5	%		4.2	%		5.5	%		4.7	%		4.9	%
Combined ratio		91.5	%		68.6	%		70.8	%		73.6	%		73.6	%		76.9	%		75.6	%		75.1	%
Large losses and other items
Catastrophe losses (before tax)	$	104		$	11		$	1		$	10		$	13		$	116		$	39		$	49
Prior period development - unfavorable (favorable)	$	(53	)	$	(27	)	$	(14	)	$	(14	)	$	(10	)	$	(94	)	$	(20	)	$	(34	)
Loss and loss expense ratio excluding catastophe losses and prior period development		50.7	%		48.2	%		49.5	%		51.2	%		49.6	%		49.5	%		49.8	%		50.0	%
% Change versus prior year period
Net premiums written		-19	%		-19	%		-28	%		-31	%		-24	%		-23	%		-21	%		-23	%
Net premiums earned		-19	%		-21	%		-23	%		-18	%		-14	%		-21	%		-13	%		-14	%
Other ratios
Net premiums written/gross premiums written		100	%		99	%		100	%		98	%		94	%		100	%		98	%		98	%

(1) See page 29 Non-GAAP Financial Measures.

Global Reinsurance Page 10

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

Life Insurance and Reinsurance

	3Q-08 (4)			2Q-08 (4)			1Q-08			4Q-07			3Q-07			YTD 2008			YTD 2007			Full Year 2007
Gross premiums written (1)	$	381		$	427		$	105		$	109		$	100		$	913		$	282		$	391
Net premiums written		348			374			105			111			95			827			270			381
Net premiums earned		344			367			100			98			95			811			270			368
Losses and loss expenses		104			110			—			—			—			214			—			—
Future policy benefits		86			84			63			60			39			233			108			168
Policy acquisition costs		48			63			8			9			13			119			36			45
Administrative expenses		61			69			13			13			13			143			37			50
Net investment income		40			40			15			15			14			95			40			55
Life underwriting income(2)		85			81			31			31			44			197			129			160
Net realized gains (losses)		(180	)		64			(186	)		(108	)		(51	)		(302	)		(56	)		(164	)
Other income (expense)		(2	)		(4	)		—			(1	)		—			(6	)		—			(1	)
Income tax expense (benefit)		15			12			(2	)		(4	)		(3	)		25			(4	)		(8	)
Net income (loss)		(112	)		129			(153	)		(74	)		(4	)		(136	)		77			3
Net realized gains (losses)		(180	)		64			(186	)		(108	)		(51	)		(302	)		(56	)		(164	)
Net realized gains (losses) in other income (expense)		2			—			—			1			—			2			—			1
Income excluding net realized gains (losses)(3)	$	66		$	65		$	33		$	33		$	47		$	164		$	133		$	166
% Change versus prior year period
Net premiums written		266	%		330	%		19	%		42	%		38	%		206	%		38	%		39	%
Net premiums earned		262	%		322	%		14	%		26	%		38	%		200	%		38	%		34	%

(1) Consistent with GAAP, premiums collected on universal life and investment contracts are considered deposits and excluded from premium revenue. For the quarters ended September 30, 2008, June 30, 2008, March 31, 2008, December 31, 2007 and September 30, 2007, premiums or deposits collected on investment and universal life contracts that are excluded from premium revenue above aggregated $18.8 million, $30.9 million, $41.2 million, $27.2 million, and $17.4 million, respectively.

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

(3) See page 29 Non-GAAP Financial Measures.

(4) Includes the North America operations of Combined Insurance.

Life Page 11

ACE Limited Segment Results -Life Reinsurance (in millions of U.S. dollars) (Unaudited)

Variable Annuity (VA) Lines

Historical Cash Flow Summary by Quarter

Death Benefits (GMDB)

	3Q-08		2Q-08		1Q-08		4Q-07		3Q-07		2Q-07		1Q-07
Premium	$	31	$	30	$	32	$	33	$	32	$	31	$	29
less Paid Claims		14		8		7		3		3		2		1
Net Cash	$	17	$	22	$	25	$	30	$	29	$	29	$	28
Living Benefits (Includes GMIB and GMAB)
	3Q-08		2Q-08		1Q-08		4Q-07		3Q-07		2Q-07		1Q-07
Premium	$	37	$	37	$	34	$	29	$	27	$	26	$	25
less Paid Claims(1)		—		—		—		—		—		—		—
Net Cash	$	37	$	37	$	34	$	29	$	27	$	26	$	25
Total VA Guaranteed Benefits
	3Q-08		2Q-08		1Q-08		4Q-07		3Q-07		2Q-07		1Q-07
Premium	$	68	$	67	$	65	$	62	$	59	$	57	$	55
less Paid Claims		14		8		7		3		3		2		2
Net Cash	$	54	$	59	$	58	$	59	$	56	$	55	$	53

Amounts represent past premium received and claims paid by quarter, split by benefit type.

Death Benefits (GMDB)

Premiums and claims from VA contracts reinsuring Guaranteed Minimum Death Benefits (GMDB)

Living Benefits (Includes GMIB and GMAB)

Premiums and claims from VA contracts reinsuring Guaranteed Minimum Income Benefits (GMIB) and Guaranteed Minimum Accumulation Benefits (GMAB), collectively known as Living Benefits.

(1) Substantially all of our living benefit reinsurance clients’ policyholders are currently ineligible to trigger a claim payment. These policyholders begin to become eligible in 2013.

Variable Annuity Page 12

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

	Total									Ongoing									Run-off (1)
	Unpaid Losses									Unpaid Losses									Unpaid Losses
	Gross			Ceded			Net			Gross			Ceded			Net			Gross			Ceded			Net
Balance at December 31, 2006	$	35,517		$	13,509		$	22,008		$	28,989		$	8,977		$	20,012		$	6,528		$	4,532		$	1,996
Losses and loss expenses incurred		2,703			843			1,860			2,690			832			1,858			13			11			2
Losses and loss expenses paid		(2,363	)		(943	)		(1,420	)		(2,206	)		(797	)		(1,409	)		(157	)		(146	)		(11	)
Other (incl. foreign exch. revaluation)		(44	)		4			(48	)		(44	)		4			(48	)		—			—			—
Balance at March 31, 2007		35,813			13,413			22,400			29,429			9,016			20,413			6,384			4,397			1,987
Losses and loss expenses incurred		2,280			487			1,793			2,249			473			1,776			31			14			17
Losses and loss expenses paid		(2,111	)		(758	)		(1,353	)		(1,977	)		(637	)		(1,340	)		(134	)		(121	)		(13	)
Other (incl. foreign exch. revaluation)		141			34			107			140			34			106			1			—			1
Balance at June 30, 2007		36,123			13,176			22,947			29,841			8,886			20,955			6,282			4,290			1,992
Losses and loss expenses incurred		3,010			1,100			1,910			2,999			1,093			1,906			11			7			4
Losses and loss expenses paid		(2,429	)		(948	)		(1,481	)		(2,269	)		(833	)		(1,436	)		(160	)		(115	)		(45	)
Other (incl. foreign exch. revaluation)		164			58			106			164			58			106			—			—			—
Balance at September 30, 2007		36,868			13,386			23,482			30,735			9,204			21,531			6,133			4,182			1,951
Losses and loss expenses incurred		2,838			1,050			1,788			2,815			1,057			1,758			23			(7	)		30
Losses and loss expenses paid		(2,613	)		(933	)		(1,680	)		(2,400	)		(806	)		(1,594	)		(213	)		(127	)		(86	)
Other (incl. foreign exch. revaluation)		19			17			2			19			17			2			—			—			—
Balance at December 31, 2007		37,112			13,520			23,592			31,169			9,472			21,697			5,943			4,048			1,895
Losses and loss expenses incurred		1,659			80			1,579			1,670			87			1,583			(11	)		(7	)		(4	)
Losses and loss expenses paid		(1,748	)		(601	)		(1,147	)		(1,554	)		(406	)		(1,148	)		(194	)		(195	)		1
Other (incl. foreign exch. revaluation)		159			71			88			159			71			88			—			—			—
Balance at March 31, 2008	$	37,182		$	13,070		$	24,112		$	31,444		$	9,224		$	22,220		$	5,738		$	3,846		$	1,892
Losses and loss expenses incurred		2,736			841			1,895			2,727			837			1,890			9			4			5
Losses and loss expenses paid		(2,620	)		(1,024	)		(1,596	)		(2,391	)		(801	)		(1,590	)		(229	)		(223	)		(6	)
Other (incl. foreign exch. revaluation)		12			12			—			11			12			(1	)		1			—			1
Losses and loss expenses acquired(2)		386			33			353			386			33			353			—			—			—
Balance at June 30, 2008	$	37,696		$	12,932		$	24,764		$	32,177		$	9,305		$	22,872		$	5,519		$	3,627		$	1,892
Losses and loss expenses incurred		3,995			1,626			2,369			3,976			1,615			2,361			19			11			8
Losses and loss expenses paid		(2,767	)		(1,025	)		(1,742	)		(2,544	)		(818	)		(1,726	)		(223	)		(207	)		(16	)
Other (incl. foreign exch. revaluation)		(551	)		(200	)		(351	)		(551	)		(200	)		(351	)		—			—			—
Balance at September 30, 2008	$	38,373		$	13,333		$	25,040		$	33,058		$	9,902		$	23,156		$	5,315		$	3,431		$	1,884
Add net recoverable on paid losses					892
Reinsurance Recoverable				$	14,225

(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) Combined Insurance.

Loss Reserve Rollforward Page 13

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

Net Reinsurance Recoverable by Division

	September 30 2008			June 30 2008			March 31 2008			December 31 2007
Reinsurance recoverable on paid losses and loss expenses
Active operations	$	643		$	706		$	686		$	697
Brandywine		354			327			342			305
Westchester Run-off		46			37			34			36
Other Run-off		13			15			9			12
Total	$	1,056		$	1,085		$	1,071		$	1,050
Reinsurance recoverable on unpaid losses and loss expenses and benefits
Active operations	$	10,389		$	9,810		$	9,746		$	10,016
Brandywine		2,675			2,844			3,004			3,161
Westchester Run-off		593			615			627			653
Other Run-off		163			149			169			160
Total	$	13,820		$	13,418		$	13,546		$	13,990
Gross reinsurance recoverable
Active operations	$	11,032		$	10,516		$	10,432		$	10,713
Brandywine		3,029			3,171			3,346			3,466
Westchester Run-off		639			652			661			689
Other Run-off		176			164			178			172
Total	$	14,876		$	14,503		$	14,617		$	15,040
Provision for uncollectible reinsurance
Active operations	$	(431	)	$	(432	)	$	(444	)	$	(435	)
Brandywine		(174	)		(185	)		(189	)		(197	)
Westchester Run-off		(31	)		(31	)		(31	)		(31	)
Other Run-off		(15	)		(16	)		(16	)		(23	)
Total	$	(651	)	$	(664	)	$	(680	)	$	(686	)
Net reinsurance recoverable
Active operations	$	10,601		$	10,084		$	9,988		$	10,278
Brandywine		2,855			2,986			3,157			3,269
Westchester Run-off		608			621			630			658
Other Run-off		161			148			162			149
Total	$	14,225		$	13,839		$	13,937		$	14,354

Reinsurance Recoverable Page 14

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

Consolidated Reinsurance Recoverable

	June 30, 2008
	Recoverable		Provision (5)		% Of Gross
Categories
Largest Reinsurers(1)	$	9,074	$	127	1.4	%
Other reinsurers balances rated A- or better		1,923		29	1.5	%
Other reinsurers balances with rating lower than A- or not rated		812		151	18.6	%
Other Pools and Government Agencies		198		12	6.1	%
Structured Settlements		551		18	3.3	%
Other Captives		1,507		7	0.5	%
Others(2)		438		320	73.1	%
Total	$	14,503	$	664	4.6	%

At June 30, 2008, $10.6 billion of ACE Limited recoverables were from rated reinsurers, of which 93.5% were rated the equivalent of A- or better by internationally recognized rating agencies.

Largest Reinsurers(3)	S&P Rating (4)	AM Best Rating (4)
AGRI General Insurance Co	BBB	A
American International Group (AIG)(6)	AA-	A+
Berkshire Hathaway Insurance Group	AAA	A++
Chubb Insurance Group	AA	A++
Equitas	NR	NR
Everest Re Group	AA-	A+
Federal Crop Insurance Corp	NL	NL
HDI Haftpflichtverband Der Deutschen Industrie Vag (Hannover)	AA-	A
Lloyd’s Of London	A+	A
Munich Re Group	AA-	A+
National Workers Compensation Reinsurance Pool	Mandatory Pool	Mandatory Pool
Partner Re	AA-	A+
Swiss Re Group	AA-	A+
WR Berkley Corp	A+	A+
XL Capital Group	A+	A

(1) The Largest Reinsurers includes all reinsurers where gross recoverable exceeds 1% of ACE Shareholders’ equity. Total ACE Shareholders’ Equity at June 30, 2008 was $16.327 billion.

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

(3) The Largest Reinsurers includes all reinsurers where gross recoverable (net of collateral) exceeds 1% of ACE Shareholders’ equity. The largest reinsurers account for 57.8% of total recoverables at June 30, 2008.

(4) S&P and AM Best ratings based on each group’s predominant reinsurer.

(5) See MD&A reported in the 2007 Form 10-K for a discussion on how ACE determines the provision for uncollectible reinsurance.

(6) Gross recoverables with American International Group (AIG) were $544.6 million at June 30, 2008, of which $420.8 million (77.3%) were with Transatlantic Rein Co.

Reinsurance Recoverable - 2 Page 15

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

Detail on Reinsurance Recoverable on Paid Losses and Loss Expenses

	General Collections (1)			Other (2)			Total
Gross balance at December 31, 2007	$	774		$	276		$	1,050
Provision at 12/31/07		43			173			216
% of gross		5.6	%		62.7	%		20.6	%
Net balance at December 31, 2007	$	731		$	103		$	834
Gross balance at March 31, 2008	$	672		$	399		$	1,071
Provision at 3/31/08		40			164			204
% of gross		6.0	%		41.1	%		19.0	%
Net balance at March 31, 2008	$	632		$	235		$	867
Gross balance at June 30, 2008	$	732		$	353		$	1,085
Provision at 6/30/08		37			141			178
% of gross		5.1	%		39.9	%		16.4	%
Net balance at June 30, 2008	$	695		$	212		$	907
Gross balance at September 30, 2008	$	713		$	343		$	1,056
Provision at 9/30/08		34			130			164
% of gross		4.8	%		37.9	%		15.5	%
Net balance at September 30, 2008 (3)	$	679		$	213		$	892

(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 multi-beneficiary trusts and parental guarantees.

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

Reinsurance Recoverable - 3 Page 16

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

	September 30 2008					June 30 2008					March 31 2008					December 31 2007
Market Value
Fixed maturities available for sale	$	33,158				$	34,870				$	32,619				$	33,184
Fixed maturities held to maturity		2,852					2,932					2,960					3,015
Short-term investments		3,014					3,137					4,795					2,631
Total	$	39,024				$	40,939				$	40,374				$	38,830
Asset Allocation by Market Value
Treasury	$	1,122		3	%	$	1,043		2	%	$	974		2	%	$	1,145		3	%
Agency		1,816		5	%		1,677		4	%		1,939		5	%		1,820		5	%
Corporate		8,779		22	%		9,689		25	%		8,906		22	%		9,015		23	%
Mortgage-backed securities		12,451		32	%		12,674		31	%		13,087		32	%		13,733		35	%
Asset-backed securities		837		2	%		1,041		2	%		1,060		3	%		1,150		3	%
Municipal		1,833		5	%		1,950		5	%		2,025		5	%		1,844		5	%
Non-U.S.		9,172		23	%		9,728		23	%		7,588		19	%		7,492		19	%
Short-term investments		3,014		8	%		3,137		8	%		4,795		12	%		2,631		7	%
Total	$	39,024		100	%	$	40,939		100	%	$	40,374		100	%	$	38,830		100	%
Note: Insured municipal bonds represent $935 million, or 51% of our municipal bond holdings.
Credit Quality by Market Value
AAA	$	23,995		62	%	$	24,740		60	%	$	26,162		65	%	$	24,553		63	%
AA		3,943		10	%		4,285		10	%		3,746		9	%		3,747		10	%
A		4,969		13	%		5,572		14	%		4,620		12	%		4,590		12	%
BBB		3,407		9	%		3,463		9	%		3,188		8	%		3,297		8	%
BB		1,296		3	%		1,390		3	%		1,249		3	%		1,073		3	%
B		1,315		3	%		1,416		4	%		1,341		3	%		1,481		4	%
Other		99		0	%		73		0	%		68		0	%		89		0	%
Total	$	39,024		100	%	$	40,939		100	%	$	40,374		100	%	$	38,830		100	%
Cost/Amortized Cost
Fixed maturities available for sale	$	34,609				$	35,355				$	32,615				$	32,994
Fixed maturities held to maturity		2,881					2,932					2,913					2,987
Short-term investments		3,014					3,137					4,795					2,631
Subtotal		40,504					41,424					40,323					38,612
Equity securities		1,336					1,502					1,597					1,618
Other investments		1,327					1,182					992					880
Total	$	43,167				$	44,108				$	42,912				$	41,110
Avg. duration of fixed maturities		3.8 years					3.7 years					3.5 years					3.5 years
Avg. market yield of fixed maturities		6.1	%				5.6	%				5.1	%				5.3	%
Avg. credit quality		AA					AA					AA					AA

Investments Page 17

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

Mortgage-backed and Asset-backed Fixed Income Portfolio

Market Value at September 30, 2008

	S&P Credit Rating
	AAA		AA		A		BBB		BB and below		Total
Mortgage-backed securities
Residential mortgage-backed (RMBS)
GNMA	$	360	$	—	$	—	$	—	$	—	$	360
FNMA		4,943		—		—		—		—		4,943
Freddie Mac		2,461		—		—		—		—		2,461
Total agency RMBS		7,764		—		—		—		—		7,764
Non-agency RMBS		2,353		12		1		1		—		2,367
Total residential mortgage-backed		10,117		12		1		1		—		10,131
Commercial mortgage-backed		2,303		4		10		3		—		2,320
Total mortgage-backed securities	$	12,420	$	16	$	11	$	4	$	—	$	12,451
Asset-backed securities
Sub-prime	$	85	$	8	$	5	$	—	$	—	$	98
Credit cards		58		—		16		8		—		82
Autos		379		53		7		12		—		451
Other		194		7		3		1		1		206
Total asset-backed securities	$	716	$	68	$	31	$	21	$	1	$	837

Insured asset-backed securities represent $147 million, or 18% of our asset-backed security holdings.

Investments 2 Page 18

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

Mortgage-backed and Asset-backed Fixed Income Portfolio

Market Value at September 30, 2008

Mortgage-backed securities total $12.5 billion, are rated predominantly AAA and comprise 32% of the fixed income portfolio. This compares to a 45% mortgage-backed weighting in representative indices of the U.S. fixed income market. The minimum rating for initial purchases of mortgage and asset backed securities is AAA.

ACE suspended new investments in ALT-A, credit card, auto and subprime backed securities in 1Q2008.

Securities issued by Federal agencies with implied or explicit government guarantees total $7.8 billion and represent 77% of the residential mortgage-backed portfolio.

Non-agency residential mortgage-backed securities are rated predominantly AAA, backed by prime collateral and broadly diversified in over 300,000 loans. The portfolio’s loan-to-value ratio is approximately 68% with an average FICO score of 736. With this conservative loan-to-value ratio and subordinated collateral of 12%, the cumulative 5-year foreclosure rate would have to rise to 28% and real estate values would have to fall 61% before principal is impaired. The comparable historical cumulative foreclosure rate is 2.5% for prime mortgages.

Within the portfolio of prime AAA non-agency RMBS are $197 million of holdings classified as ALT-A. These ALT-A holdings are broadly diversified with over 69% issued prior to 2006. The average FICO score is 714 with a relatively conservative loan-to-value ratio of 71%. With subordinated collateral of 21%, the cumulative 4-year foreclosure rate would have to rise to 50% and real estate values would have to fall more than 59% before principal is impaired. The comparable historical cumulative foreclosure rate is approximately 8%.

Commercial mortgage-backed securities of $2.3 billion are rated predominantly AAA, broadly diversified with over 26,000 loans and seasoned with 71% of the portfolio issued before 2006. The average loan-to-value ratio is approximately 63% with a debt service coverage ratio in excess of 1.7 and weighted average subordinated collateral of 26%. The cumulative foreclosure rate would have to rise to 61% and commercial real estate values would have to fall more than 64% before principal is impaired. The historical annual delinquency rate is 1%.

Subprime asset-backed securities (current holdings of $100 million) are rated predominantly AA, broadly diversified in over 125,000 loans with an average loan-to-value ratio of approximately 80% and an average FICO score of 610. With subordinated collateral of 34%, the cumulative 5-year foreclosure rate would have to rise to 79% and real estate values would have to fall more than 54% before principal is impaired. The comparable historical cumulative 5-year foreclosure rate is 27%. The ratings have been reaffirmed on substantially all of these securities.

Auto loan asset-backed securities are rated predominantly AAA with a short duration of approximately 0.8 years and average subordinated collateral of 12%. Annual default rates would have to rise to 8 times their historic average of 1.5% before principal is impaired.

Investments 3 Page 19

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

Mortgage-backed and Asset-backed Fixed Income Portfolio

Amoritized Cost at September 30, 2008

	S&P Credit Rating
	AAA		AA		A		BBB		BB and below		Total
Mortgage-backed securities
Residential mortgage-backed (RMBS)
GNMA	$	357	$	—	$	—	$	—	$	—	$	357
FNMA		4,889		—		—		—		—		4,889
Freddie Mac		2,435		—		—		—		—		2,435
Total agency RMBS		7,681		—		—		—		—		7,681
Non-agency RMBS		2,756		15		1		1		—		2,773
Total residential mortgage-backed		10,437		15		1		1		—		10,454
Commercial mortgage-backed		2,442		4		10		3		—		2,459
Total mortgage-backed securities	$	12,879	$	19	$	11	$	4	$	—	$	12,913
Asset-backed securities
Sub-prime	$	97	$	9	$	5	$	—	$	—	$	111
Credit cards		58		—		16		8		—		82
Autos		383		56		7		12		—		458
Other		196		7		3		1		1		208
Total asset-backed securities	$	734	$	72	$	31	$	21	$	1	$	859

Insured asset-backed securities represent $152 million, or 18% of our asset-backed security holdings.

Investments 4 Page 20

ACE Limited Investment Portfolio - 5 (in millions of U.S. dollars) (Unaudited)

Market Value at September 30, 2008

	S&P Credit Rating
	AAA		AA		A		BBB		BB and below		Total
U.S. Investment Grade Corporate Fixed Income Portfolio
Banks	$	4	$	1,051	$	882	$	61	$	—	$	1,998
Basic Materials		—		—		30		72				102
Communications		1		—		307		435				743
Consumer, Cyclical		8		80		128		111				327
Consumer, Non-Cyclical		12		54		325		161				552
Diversified Financial Services		36		67		289		59				451
Energy		—		8		148		373				529
Industrial		293		28		192		110				623
Utilities		—		10		179		332				521
All Others		55		136		230		184		—		605
Total	$	409	$	1,434	$	2,710	$	1,898	$	—	$	6,451

U.S. Investment Grade Corporate Fixed Income Portfolio

The average credit quality of ACE’s US investment grade bond portfolio is very high at AA+. 66% of investment grade securities holdings are rated AAA or guaranteed by governments or quasi-government agencies.

ACE prohibits investments in complex structured securities (e.g. CDOs, CLOs) and over-the-counter derivatives and does not permit the use of portfolio leverage.

Corporate bond holdings are highly diversified across industries and geographies. Issuer limits are based on credit rating (AA 2%, A 1%, BBB .5% of total portfolio) and are monitored on a daily basis by ACE via an internal compliance system.

Investment 5 Page 21

ACE Limited Investment Portfolio - 6 (in millions of U.S. dollars) (Unaudited)

Market Value at September 30, 2008

	S&P Credit Rating
	BB		B		CCC		Other				Total
Below Investment Grade Corporate Fixed Income Portfolio
Basic Materials	$	86	$	31	$	5	$	—	$	—	$	122
Communications		219		154		11		—				384
Consumer, Cyclical		118		165		13		—				296
Consumer, Non-Cyclical		154		245		21		—				420
Diversified Financial Services		15		97		3		4				119
Energy		241		136		1		—				378
Industrial		152		127		3		—				282
Utilities		93		91		—		—				184
All Others		54		82		7		—		—		143
Total	$	1,132	$	1,128	$	64	$	4	$	—	$	2,328

Below Investment Grade Corporate Fixed income Portfolio

ACE manages high yield bonds as a distinct and separate asset class from investment grade bonds. ACE’s allocation to high yield bonds is explicitly set by internal management and is targeted to securities in the upper tier of credit quality (BB/B). Our minimum rating for initial purchase is BB/B.

Four external investment managers are responsible for high yield security selection and portfolio construction.

ACE’s high yield managers have a conservative approach to credit selection and very low historical default experience.

Securities holdings are highly diversified across industries and are subject to a 1.5% issuer limit as a percentage of high yield allocation (or 0.1% of total portfolio). The portfolio is comprised of over 500 issuers with our largest current issuer exposure at $38 million. ACE monitors position limits on a daily basis through an internal compliance system.

Derivative and structured securities (e.g. credit default swaps, CLOs) are not permitted in high yield portfolios.

Investments 6 Page 22

ACE Limited Investment Portfolio - 7 (in millions of U.S. dollars) (Unaudited)

Market Value at September 30, 2008

	S&P Credit Rating
	AAA		AA		A		BBB		BB and below		Total
Non-U.S. Fixed Income Portfolio
United Kingdom	$	1,277									$	1,277
Germany		466										466
France		330										330
Canada		673										673
Japan		—		165								165
Other Foreign Government		686		285		329		203		17		1,520
Non US Corporate		682		798		1,762		1,194		305		4,741
	$	4,114	$	1,248	$	2,091	$	1,397	$	322	$	9,172

Non-US Fixed Income Portfolio

ACE’s non-US investment grade fixed income portfolios are currency-matched with the insurance liabilities of ACE’s non-US operations.

89% of ACE’s non-US fixed income is denominated in G7 currencies.

Average credit quality of non-US fixed income securities is very high at AA and 54% of holdings are rated AAA or guaranteed by governments or quasi-government agencies.

Corporate bond holdings are highly diversified across industries and geographies. Issuer limits are based on credit rating (AA 2%, A 1%, BBB .5% of total portfolio) and are monitored on a daily basis by ACE via an internal compliance system.

Investments 7 Page 23

ACE Limited Investment Portfolio - 8 (in millions of U.S. dollars) (Unaudited)

Investment portfolio

Top 25 Exposures - Fixed Maturity Investments

September 30, 2008			Rating
General Electric Co	$	390	AAA
JP Morgan Chase & Co		319	AA-
Bank of America Corp		269	AA-
Citigroup Inc		247	AA-
HSBC Holdings Plc		181	AA-
AT&T INC		171	A
Wells Fargo & Co		167	AA+
Comcast Corp		159	BBB+
Time Warner Inc		157	BBB+
Royal Bank of Scotland Group Plc		136	A+
Goldman Sachs Group Inc		134	AA-
ConocoPhillips		124	A
Verizon Communications Inc		117	A
Wachovia Corp		116	A+
Merrill Lynch & Co Inc		115	A
Credit Suisse Group		113	A+
Morgan Stanley		106	A+
Telecom Italia SpA		97	BBB
XTO Energy Inc		92	BBB
Deutsche Telekom AG		76	BBB+
Barclays PLC		73	AA-
Dominion Resources Inc/VA		70	A-
BT Group PLC		70	BBB+
HBOS PLC		69	A+
Australia & New Zealand Banking		66	AA

Investments 8 Page 24

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

	Three months ended September 30, 2008									Nine months ended September 30, 2008
	Net Realized Gains (Losses)(1)			Net Unrealized Gains (Losses)			Net Impact			Net Realized Gains (Losses)(1)			Net Unrealized Gains (Losses)			Net Impact
Fixed maturities	$	(272	)	$	(952	)	$	(1,224	)	$	(575	)	$	(1,605	)	$	(2,180	)
Equity securities		(126	)		(95	)		(221	)		(167	)		(326	)		(493	)
Equity and fixed income derivatives		15			—			15			(10	)		—			(10	)
Foreign exchange gains (losses)		15			—			15			33			—			33
Other		4			(72	)		(68	)		(19	)		(88	)		(107	)
Sub-total		(364	)		(1,119	)		(1,483	)		(738	)		(2,019	)		(2,757	)
Mark-to-market gains (losses) from derivative transactions(2)		(146	)		—			(146	)		(251	)		—			(251	)
Total gains (losses)		(510	)		(1,119	)		(1,629	)		(989	)		(2,019	)		(3,008	)
Partially-owned insurance companies(3)		(23	)		(20	)		(43	)		69			(6	)		63
Income tax expense (benefit)		(83	)		(265	)		(348	)		(130	)		(317	)		(447	)
Net gains (losses)	$	(450	)	$	(874	)	$	(1,324	)	$	(790	)	$	(1,708	)	$	(2,498	)

(1) The quarter includes impairments of $196M for fixed maturities, $28M for equities and $nil for other investments. Year to date includes impairments of $495M for fixed maturities, $103M for equities and $25M for other investments.

(2) Includes $161M and $279M of unrealized losses primarily on the guaranteed minimum income benefit derivatives from our life reinsurance operations for the quarter and year to date, respectively.

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

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

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

Investment Gains (Losses) Page 25

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

	September 30 2008			June 30 2008			March 31 2008			December 31 2007			December 31 2006
Total short-term debt(1)	$	333		$	1,050		$	1,341		$	372		$	578
Total long-term debt		3,002			3,008			2,114			1,811			1,560
Total debt	$	3,335		$	4,058			3,455			2,183		$	2,138
Total trust preferred securities	$	309		$	309		$	309		$	309		$	309
Perpetual preferred shares	$	—		$	—			557		$	557		$	557
Common shareholders’ equity		15,356			16,327			16,178			16,120			13,721
Total shareholders’ equity	$	15,356		$	16,327		$	16,735		$	16,677		$	14,278
Total capitalization	$	19,000		$	20,694		$	20,499		$	19,169		$	16,725
Tangible shareholders’ equity(2)	$	11,539		$	12,715		$	13,856		$	13,839		$	11,439
Leverage ratios
Debt/ total capitalization		17.6	%		19.6	%		16.9	%		11.4	%		12.8	%
Debt plus trust preferred secutities/ total capitalization		19.2	%		21.1	%		18.4	%		13.0	%		14.6	%
Debt/ tangible equity		28.9	%		31.9	%		24.9	%		15.8	%		18.7	%
Debt plus trust preferred securities/ tangible equity		31.6	%		34.3	%		27.2	%		18.0	%		21.4	%
Debt plus total preferred stock/ total capitalization		19.2	%		21.1	%		21.1	%		15.9	%		18.0	%

(1) Includes $1.0 billion and $705 million of repurchase agreements for the Combined Insurance acquisition for Q1 and Q2, respectively.

(2) Tangible equity is equal to shareholders’ equity less goodwill and other intangible assets.

Capital Structure Page 26

ACE Limited Debt, Trust Preferred and Credit Facilities (in millions of U.S. dollars) (Unaudited)

	Par amount outstanding		Coupon			Maturity Date
Debt and Trust Preferred
ACE US Holdings Senior Notes(1)	$	250		6.47	%	October 1, 2008
ACE Australia Holdings PTY Limited Term Loan	$	79		7.81	%	December 19, 2008
ACE INA Holdings Inc Subordinated Notes	$	200		8.41	%	December 1, 2009
ACE European Holdings No2 Limited Term Loan	$	178		5.25	%	December 13, 2010
ACE INA Holdings Inc. Term Loan	$	450		4.15	%	April 1, 2013
ACE INA Holdings Inc. Senior Notes	$	500		5.88	%	June 15, 2014
ACE INA Holdings Inc. Senior Notes	$	450		5.60	%	May 15, 2015
ACE INA Holdings Inc. Senior Notes	$	500		5.70	%	February 15, 2017
ACE INA Holdings Inc. Senior Notes	$	300		5.80	%	March 15, 2018
ACE INA Holdings Inc. Debentures	$	100		8.88	%	August 15, 2029
ACE Capital Trust II Capital Securities	$	300		9.70	%	April 1, 2030
ACE INA Holdings Inc. Senior Notes	$	300		6.70	%	May 15, 2036
	Commitment		LOC Usage			Maturity Date
Credit Facilities
Syndicated Letter of Credit Facility	$	1,000	$	688		November 8, 2012
Revolving Credit / LOC Facility	$	500	$	64		November 8, 2012
Funds at Lloyds Capital Facility	$	534	$	306		December 31, 2013

(1) Notes repaid with proceeds from security repurchase agreements that mature on December 3, 2008.

Capital Structure 2 Page 27

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

	Three months ended September 30						Nine months ended September 30
	2008			2007			2008			2007
Numerator
Income excluding net realized gains (losses)(1)	$	504		$	692		$	1,967		$	2,019
Perpetual preferred dividend		—			(11	)		(24	)		(33	)
Income to common shares, excl. net realized gains (losses)		504			681			1,943			1,986
Net realized gains (losses), net of income tax		(450	)		(36	)		(790	)		(13	)
Net income available to the holders of common shares		54			645			1,153			1,973
Rollforward of Common Shares Outstanding
Shares - beginning of period		333,249,308			329,009,343			329,704,531			326,455,468
Issued under employee stock purchase plan		—			101,234			203,455			205,396
Shares (cancelled) granted		(58,647	)		11,614			1,093,933			1,259,080
Issued for option exercises		203,947			338,176			2,392,689			1,540,423
Shares - end of period		333,394,608			329,460,367			333,394,608			329,460,367
Denominator
Weighted average shares outstanding		329,017,376			325,201,688			328,264,771			324,670,960
Effect of other dilutive securities		4,030,013			5,419,353			4,416,680			5,413,751
Adj. wtd. avg. shares outstanding and assumed conversions		333,047,389			330,621,041			332,681,451			330,084,711
Basic earnings per share
Income excluding net realized gains (losses)(1)	$	1.53		$	2.09		$	5.92		$	6.12
Net realized gains (losses), net of income tax		(1.37	)		(0.11	)		(2.41	)		(0.04	)
Net income	$	0.16		$	1.98		$	3.51		$	6.08
Diluted earnings per share
Income excluding net realized gains (losses)(1)	$	1.51		$	2.06		$	5.84		$	6.02
Net realized gains (losses), net of income tax		(1.35	)		(0.11	)		(2.38	)		(0.04	)
Net income	$	0.16		$	1.95		$	3.46		$	5.98

(1) See page 29 Non-GAAP Financial Measures.

Earning per share Page 28

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 30.

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, future policy benefits, policy acquisition costs, and administrative expenses from net premiums earned. We use underwriting results and operating ratios to monitor the results of our operations without the impact of certain factors, including investment income, other income and expenses, interest and income tax expense, and net realized gains (losses).

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

	3Q-08			2Q-08			1Q-08			4Q-07			3Q-07			YTD 2008			YTD 2007			Full Year 2007
Net income, as reported	$	54		$	746		$	377		$	572		$	656		$	1,177		$	2,006		$	2,578
Net realized gains (losses)		(510	)		(126	)		(353	)		(66	)		—			(989	)		5			(61	)
Net realized gains (losses) in other income (expense)(1)		(23	)		120			(28	)		(57	)		(38	)		69			(38	)		(95	)
Income tax expense (benefit) on net realized gains (losses)		(83	)		(14	)		(33	)		(2	)		(2	)		(130	)		(20	)		(22	)
Income excluding net realized gains (losses)	$	504		$	738		$	725		$	693		$	692		$	1,967		$	2,019		$	2,712

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

Reconciliation Non-GAAP Page 29

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

Reconciliation of Book Value per Common Share

	September 30 2008		June 30 2008		March 31 2008			December 31 2007
Shareholders’ equity	$	15,356	$	16,327	$	16,735		$	16,677
Proceeds from issuance of perpetual preferred shares		—		—		(557	)		(557	)
Numerator for book value per share calculation		15,356		16,327		16,178			16,120
Less: goodwill and other intangible assets		3,817		3,612		2,879			2,838
Numerator for tangible book value per share	$	11,539	$	12,715	$	13,299		$	13,282
Denominator		333,394,608		333,249,308		332,506,547			329,704,531
Book value per common share	$	46.06	$	48.99	$	48.65		$	48.89
Tangible book value per common share	$	34.61	$	38.15	$	40.00		$	40.28

Reconciliation Book Value Page 30

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

Consolidated Statement of Comprehensive Income

	3Q-08			2Q-08			1Q-08			4Q-07			3Q-07			YTD 2008			YTD 2007			Full Year 2007
Net income	$	54		$	746		$	377		$	572		$	656		$	1,177		$	2,006		$	2,578
Net unrealized appreciation (depreciation) on investments
Unrealized appreciation (depreciation) on investments		(1,522	)		(731	)		(497	)		133			218			(2,750	)		(136	)		(3	)
Reclassification adjustment for net realized gains (losses) included in net income		383			169			173			6			6			725			21			27
Change in cumulative translation adjustments		(155	)		6			27			12			58			(122	)		93			105
Change in minimum pension liability		5			1			—			(1	)		(1	)		6			(3	)		(4	)
Income tax (expense) benefit related to other comprehensive income items		320			27			8			(37	)		(28	)		355			(23	)		(60	)
Other comprehensive income (loss)		(969	)		(528	)		(289	)		113			253			(1,786	)		(48	)		65
Comprehensive income (loss)	$	(915	)	$	218		$	88		$	685		$	909		$	(609	)	$	1,958		$	2,643

Comprehensive Income Page 31

ACE Limited Glossary

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

Book value per common share: Common shareholders’ equity divided by the shares outstanding.

Combined Insurance:Combined Insurance Company of America, acquired April 1, 2008.

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

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

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

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

NM:Not meaningful.

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

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

Tangible equity:Shareholders’ equity less goodwill and other intangible assets.

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

Glossary Page 32