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 months, 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
III.	Segment Results
	- Insurance - North American	7
	- Insurance - Overseas General	8
	- Global Reinsurance	9
	- Life Insurance and Reinsurance	10-11
IV.	Balance Sheet Details
	- Loss Reserve Rollforward	12
	- Reinsurance Recoverable Analysis	13-15
	- Investment Portfolio	16-23
	- Net Realized and Unrealized Gains (Losses)	24-25
	- Capital Structure	26-27
	- Computation of Basic and Diluted Earnings Per Share	28
V.	Other Disclosures
	- Non-GAAP Financial Measures	29
	- Book Value and 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 December 31						% Change 4Q-08 vs. 4Q-07		Year ended December 31						% Change 2008 vs. 2007
	2008			2007					2008			2007
Gross premiums written	$	4,320		$	4,144		4	%	$	19,242		$	17,740		8	%
Net premiums written	$	3,052		$	2,827		8	%	$	13,080		$	11,979		9	%
Net premiums earned	$	3,226		$	3,057		6	%	$	13,203		$	12,297		7	%
Net investment income	$	521		$	504		3	%	$	2,062		$	1,918		8	%
Net income	$	20		$	572		-97	%	$	1,197		$	2,578		-54	%
Income excluding net realized gains (losses)(1)	$	624		$	693		-10	%	$	2,591		$	2,712		-4	%
Comprehensive income (loss)	$	(873	)	$	685		NM		$	(1,482	)	$	2,643		NM
Operating cash flow	$	961		$	823		17	%	$	4,101		$	4,701		-13	%
Combined ratio
Loss and loss expense ratio		57.8	%		60.4	%				60.6	%		61.6	%
Underwriting and administrative expense ratio		29.1	%		27.7	%				29.0	%		26.3	%
Combined ratio		86.9	%		88.1	%				89.6	%		87.9	%
Annualized ROE*		16.7	%		17.2	%				16.8	%		17.9	%
Annualized ROE, excluding FAS 115*		15.3	%		17.8	%				16.2	%		18.6	%
Effective tax rate on income excluding net realized gains (losses)		22	%		17	%				18	%		18	%
Diluted earnings per share
Income excluding net realized gains (losses)(1)	$	1.87		$	2.05		-9	%	$	7.72		$	8.07		-4	%
Net income	$	0.06		$	1.69		-96	%	$	3.53		$	7.66		-54	%
Book value per common share	$	43.30		$	48.89		-11	%	$	43.30		$	48.89		-11	%
Tangible book value per common share	$	32.07		$	40.28		-20	%	$	32.07		$	40.28		-20	%
Weighted average basic common shares outstanding		329.4			325.6					328.6			324.9
Weighted average diluted common shares outstanding		332.8			331.3					332.5			330.4
Debt/total capitalization		18.2	%		11.4	%				18.2	%		11.4	%

(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

	4Q-08			3Q-08			2Q-08			1Q-08			4Q-07			Full Year 2008			Full Year 2007
Consolidated Results Excluding Life Segment
Gross premiums written	$	3,906			4,839		$	4,866		$	4,304		$	4,035		$	17,915		$	17,349
Net premiums written		2,681			2,928			3,224			3,049			2,716			11,882			11,598
Net premiums earned		2,867			3,265			3,061			2,840			2,959			12,033			11,929
Losses and loss expenses		1,654			2,265			1,785			1,579			1,788			7,283			7,351
Future policy benefits		2			5			5			—			—			12			—
Policy acquisition costs		448			533			506			460			448			1,947			1,726
Administrative expenses		388			396			392			362			372			1,538			1,405
Underwriting income excluding life segment	$	375		$	66		$	373		$	439		$	351		$	1,253		$	1,447
Life underwriting income excluding investment income		(26	)		45			41			16			16			76			105
Net investment income		521			520			532			489			504			2,062			1,918
Net realized gains (losses)		(644	)		(510	)		(126	)		(353	)		(66	)		(1,633	)		(61	)
Interest expense		54			68			62			46			43			230			175
Other income (expense)(1)		(65	)		(6	)		125			(15	)		(49	)		39			(81	)
Income tax expense (benefit)		87			(7	)		137			153			141			370			575
Net income	$	20		$	54		$	746		$	377		$	572		$	1,197		$	2,578
Net realized gains (losses)		(644	)		(510	)		(126	)		(353	)		(66	)		(1,633	)		(61	)
Net realized gains (losses) in other income (expense)(1)		(48	)		(23	)		120			(28	)		(57	)		21			(95	)
Tax expense (benefit) on net realized gains (losses)		(88	)		(83	)		(14	)		(33	)		(2	)		(218	)		(22	)
Income excluding net realized gains (losses)(2)	$	624		$	504		$	738		$	725		$	693		$	2,591		$	2,712
% Change versus prior year period (3)
Net premiums written		-1	%		8	%		8	%		-4	%		-3	%		2	%		-1	%
Net premiums earned		-3	%		7	%		5	%		-5	%		0	%		1	%		3	%
Other ratios
Net premiums written/gross premiums written		69	%		61	%		66	%		71	%		67	%		66	%		67	%
Effective tax rate on income excluding net realized gains (losses)		22	%		13	%		17	%		20	%		17	%		18	%		18	%
Combined ratio(3)
Loss and loss expense ratio		57.8	%		69.5	%		58.5	%		55.6	%		60.4	%		60.6	%		61.6	%
Policy acquisition cost ratio		15.6	%		16.3	%		16.5	%		16.2	%		15.1	%		16.2	%		14.5	%
Administrative expense ratio		13.5	%		12.1	%		12.8	%		12.8	%		12.6	%		12.8	%		11.8	%
Combined ratio		86.9	%		97.9	%		87.8	%		84.6	%		88.1	%		89.6	%		87.9	%
Expense ratio		29.1	%		28.4	%		29.3	%		29.0	%		27.7	%		29.0	%		26.3	%
Expense ratio excluding A&H		24.3	%		24.0	%		25.2	%		25.7	%		24.2	%		24.8	%		22.9	%
Large losses and other items(3)
Catastrophe losses (before tax)	$	67		$	411		$	58		$	31		$	23		$	567		$	159
Prior period development - unfavorable (favorable)(4)	$	(252	)	$	(277	)	$	(104	)	$	(137	)	$	(89	)	$	(770	)	$	(217	)
Loss and loss expense ratio excluding catastrophe losses and prior period development		64.4	%		65.2	%		60.0	%		60.9	%		62.7	%		62.7	%		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 Insurance and Reinsurance 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)

	December 31 2008			September 30 2008			June 30 2008			March 31 2008		December 31 2007
	(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)		(Audited)
Assets
Fixed maturities available for sale, at fair value	$	31,155		$	33,158		$	34,870		$	32,619	$	33,184
Fixed maturities held to maturity, at amortized cost		2,860			2,881			2,932			2,913		2,987
Equity securities, at fair value		988			1,229			1,490			1,660		1,837
Short-term investments, at fair value		3,350			3,014			3,137			4,795		2,631
Other investments		1,362			1,529			1,414			1,243		1,140
Total investments		39,715			41,811			43,843			43,230		41,779
Cash		867			479			582			511		510
Securities lending collateral		1,230			2,050			2,118			2,361		2,109
Insurance and reinsurance balances receivable		3,453			3,499			4,086			3,748		3,540
Reinsurance recoverable on losses and loss expenses		13,917			14,225			13,839			13,937		14,354
Deferred policy acquisition costs		1,214			1,263			1,292			1,220		1,121
Value of business acquired		823			923			1,288			—		—
Prepaid reinsurance premiums		1,539			1,770			1,964			1,742		1,600
Goodwill and other intangible assets		3,747			3,817			3,612			2,879		2,838
Deferred tax assets		1,835			1,457			1,029			1,054		1,087
Investments in partially owned insurance companies		832			867			900			776		773
Other assets		2,885			2,994			3,223			2,461		2,379
Total assets	$	72,057		$	75,155		$	77,776		$	73,919	$	72,090
Liabilities
Unpaid losses and loss expenses	$	37,176		$	38,373		$	37,696		$	37,182	$	37,112
Unearned premiums		5,950			6,459			7,054			6,653		6,227
Future policy benefits		2,904			2,919			2,948			632		545
Insurance and reinsurance balances payable		2,841			2,754			2,991			2,756		2,843
Securities lending payable		1,296			2,095			2,118			2,361		2,109
Payable for securities purchased		740			1,008			1,802			1,391		1,798
Accounts payable, accrued expenses, and other liabilities		3,118			2,547			2,473			2,445		2,287
Short-term debt		471			333			1,050			1,341		372
Long-term debt		2,806			3,002			3,008			2,114		1,811
Trust preferred securities		309			309			309			309		309
Total liabilities		57,611			59,799			61,449			57,184		55,413
Shareholders’ equity
Total shareholders’ equity, excl. AOCI		16,362			16,379			16,381			16,261		15,908
Accumulated other comprehensive income (AOCI)		(1,916	)		(1,023	)		(54	)		474		769
Total shareholders’ equity		14,446			15,356			16,327			16,735		16,677
Total liabilities and shareholders’ equity	$	72,057		$	75,155		$	77,776		$	73,919	$	72,090
Book value per common share(1)	$	43.30		$	46.06		$	48.99		$	48.65	$	48.89
Tangible book value per common share(1)	$	32.07		$	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

	4Q-08			% of Total Consolidated		4Q-07		% of Total Consolidated		% Change 4Q-08 vs. 4Q-07		Year 2008		% of Total Consolidated		Year 2007		% of Total Consolidated		% Change 2008 vs. 2007
Net premiums written
Property and all other	$	731		24	%	$	769	27	%	-5	%	$	3,963	30	%	$	3,721	31	%	7	%
Casualty		1,413		46	%		1,522	54	%	-7	%		5,666	43	%		6,219	52	%	-9	%
Subtotal		2,144		70	%		2,291	81	%	-6	%		9,629	73	%		9,940	83	%	-3	%
Personal accident (A&H)(1)		771		25	%		425	15	%	81	%		2,964	23	%		1,658	14	%	79	%
Life(2)		137		5	%		111	4	%	23	%		487	4	%		381	3	%	28	%
Total Consolidated	$	3,052		100	%	$	2,827	100	%	8	%	$	13,080	100	%	$	11,979	100	%	9	%
Net premiums earned
Property and all other	$	924		29	%	$	963	32	%	-4	%	$	3,954	30	%	$	3,811	31	%	4	%
Casualty		1,403		43	%		1,556	51	%	-10	%		5,838	44	%		6,464	53	%	-10	%
Subtotal		2,327		72	%		2,519	83	%	-8	%		9,792	74	%		10,275	84	%	-5	%
Personal accident (A&H)(1)		768		24	%		440	14	%	75	%		2,949	22	%		1,654	13	%	78	%
Life(2)		131		4	%		98	3	%	34	%		462	4	%		368	3	%	26	%
Total Consolidated	$	3,226		100	%	$	3,057	100	%	6	%	$	13,203	100	%	$	12,297	100	%	7	%
Income excluding net realized gains (losses)
Property, casualty, and all other	$	547		88	%	$	582	84	%	-6	%	$	2,080	80	%	$	2,268	84	%	-8	%
Personal accident (A&H)(1)		104		16	%		78	11	%	33	%		433	17	%		278	10	%	56	%
Life(2)		(27	)	-4	%		33	5	%	-182	%		78	3	%		166	6	%	-53	%
Total Consolidated	$	624		100	%	$	693	100	%	-10	%	$	2,591	100	%	$	2,712	100	%	-4	%

(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 December 31, 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
December 31, 2008
Gross premiums written	$	2,167		$	1,609		$	130		$	—		$	3,906		$	414		$	4,320
Net premiums written		1,304			1,251			126			—			2,681			371			3,052
Net premiums earned		1,377			1,250			240			—			2,867			359			3,226
Losses and loss expenses		893			640			121			—			1,654			106			1,760
Future policy benefits		—			2			—			—			2			154			156
Policy acquisition costs		112			296			40			—			448			69			517
Administrative expenses		138			195			13			42			388			56			444
Underwriting income (loss)		234			117			66			(42	)		375			(26	)		349
Net investment income		266			134			74			—			474			47			521
Net realized gains (losses)		(259	)		(117	)		(96	)		58			(414	)		(230	)		(644	)
Interest expense		1			—			—			53			54			—			54
Other income (expense)		(1	)		(3	)		—			(55	)		(59	)		(6	)		(65	)
Income tax expense (benefit)		93			5			6			(22	)		82			5			87
Net income (loss)		146			126			38			(70	)		240			(220	)		20
Net realized gains (losses)		(259	)		(117	)		(96	)		58			(414	)		(230	)		(644	)
Net realized gains (losses) in other income (expense)		—			1			—			(49	)		(48	)		—			(48	)
Tax expense (benefit) on net realized gains (losses)		(72	)		(17	)		(1	)		8			(82	)		(6	)		(88	)
Income (loss) excluding net realized gains (losses)(1)	$	333		$	225		$	133		$	(71	)	$	620		$	4		$	624
December 31, 2007
Gross premiums written	$	2,274		$	1,584		$	177		$	—		$	4,035		$	109		$	4,144
Net premiums written		1,373			1,169			174			—			2,716			111			2,827
Net premiums earned		1,418			1,229			312			—			2,959			98			3,057
Losses and loss expenses		1,004			631			155			(2	)		1,788			—			1,788
Future policy benefits		—			—			—			—			—			60			60
Policy acquisition costs		121			269			58			—			448			9			457
Administrative expenses		138			175			17			42			372			13			385
Underwriting income (loss)		155			154			82			(40	)		351			16			367
Net investment income		276			119			73			21			489			15			504
Net realized gains (losses)		44			(11	)		(3	)		12			42			(108	)		(66	)
Interest expense		—			—			—			43			43			—			43
Other income (expense)		—			12			(1	)		(59	)		(48	)		(1	)		(49	)
Income tax expense (benefit)		100			59			7			(21	)		145			(4	)		141
Net income (loss)		375			215			144			(88	)		646			(74	)		572
Net realized gains (losses)		44			(11	)		(3	)		12			42			(108	)		(66	)
Net realized gains (losses) in other income (expense)		—			15			—			(73	)		(58	)		1			(57	)
Tax expense (benefit) on net realized gains (losses)		(2	)		(1	)		(1	)		2			(2	)		—			(2	)
Income (loss) excluding net realized gains (losses)(1)	$	329		$	210		$	146		$	(25	)	$	660		$	33		$	693
(1)    See page 29 Non-GAAP Financial Measures.

Segment 2008 Qtr Page 5

ACE Limited Consolidating Statement of Operations Year ended December 31, 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
December 31, 2008
Gross premiums written	$	10,053		$	6,941		$	921		$	—		$	17,915		$	1,327		$	19,242
Net premiums written		5,636			5,332			914			—			11,882			1,198			13,080
Net premiums earned		5,679			5,337			1,017			—			12,033			1,170			13,203
Losses and loss expenses		4,080			2,679			524			—			7,283			320			7,603
Future policy benefits		—			12			—			—			12			387			399
Policy acquisition costs		562			1,193			192			—			1,947			188			2,135
Administrative expenses		536			793			56			153			1,538			199			1,737
Underwriting income (loss)		501			660			245			(153	)		1,253			76			1,329
Net investment income		1,095			521			309			(5	)		1,920			142			2,062
Net realized gains (losses)		(709	)		(316	)		(163	)		87			(1,101	)		(532	)		(1,633	)
Interest expense		1			—			—			229			230			—			230
Other income (expense)		(7	)		11			(2	)		49			51			(12	)		39
Income tax expense (benefit)		315			100			30			(105	)		340			30			370
Net income (loss)		564			776			359			(146	)		1,553			(356	)		1,197
Net realized gains (losses)		(709	)		(316	)		(163	)		87			(1,101	)		(532	)		(1,633	)
Net realized gains (losses) in other income (expense)		—			18			—			1			19			2			21
Tax expense (benefit) on net realized gains (losses)		(151	)		(62	)		(4	)		5			(212	)		(6	)		(218	)
Income (loss) excluding net realized gains (losses)(1)	$	1,122		$	1,012		$	518		$	(229	)	$	2,423		$	168		$	2,591
December 31, 2007
Gross premiums written	$	9,840		$	6,291		$	1,218		$	—		$	17,349		$	391		$	17,740
Net premiums written		5,833			4,568			1,197			—			11,598			381			11,979
Net premiums earned		6,007			4,623			1,299			—			11,929			368			12,297
Losses and loss expenses		4,269			2,420			664			(2	)		7,351			—			7,351
Future policy benefits		—			—			—			—			—			168			168
Policy acquisition costs		515			963			248			—			1,726			45			1,771
Administrative expenses		530			669			64			142			1,405			50			1,455
Underwriting income (loss)		693			571			323			(140	)		1,447			105			1,552
Net investment income		1,034			450			274			105			1,863			55			1,918
Net realized gains (losses)		125			(69	)		21			26			103			(164	)		(61	)
Interest expense		—			—			—			175			175			—			175
Other income (expense)		(11	)		20			(4	)		(85	)		(80	)		(1	)		(81	)
Income tax expense (benefit)		468			183			32			(100	)		583			(8	)		575
Net income (loss)		1,373			789			582			(169	)		2,575			3			2,578
Net realized gains (losses)		125			(69	)		21			26			103			(164	)		(61	)
Net realized gains (losses) in other income (expense)		—			26			—			(122	)		(96	)		1			(95	)
Tax expense (benefit) on net realized gains (losses)		21			(14	)		(2	)		(27	)		(22	)		—			(22	)
Income (loss) excluding net realized gains (losses)(1)	$	1,269		$	818		$	559		$	(100	)	$	2,546		$	166		$	2,712
(1)    See page 29 Non-GAAP Financial Measures.

Segment 2008 YTD Page 6

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

Insurance - North American

	4Q-08			3Q-08			2Q-08			1Q-08			4Q-07			Full Year 2008			Full Year 2007
Gross premiums written	$	2,167		$	2,987		$	2,718		$	2,181		$	2,274		$	10,053		$	9,840
Net premiums written		1,304			1,461			1,511			1,360			1,373			5,636			5,833
Net premiums earned		1,377			1,583			1,365			1,354			1,418			5,679			6,007
Losses and loss expenses		893			1,356			962			869			1,004			4,080			4,269
Policy acquisition costs		112			160			129			161			121			562			515
Administrative expenses		138			132			131			135			138			536			530
Underwriting income		234			(65	)		143			189			155			501			693
Net investment income		266			278			282			269			276			1,095			1,034
Net realized gains (losses)		(259	)		(284	)		(105	)		(61	)		44			(709	)		125
Interest expense		1			—			—			—			—			1			—
Other income (expense)		(1	)		(3	)		(3	)		—			—			(7	)		(11	)
Income tax expense (benefit)		93			(7	)		106			123			100			315			468
Net income (loss)		146			(67	)		211			274			375			564			1,373
Net realized gains (losses)		(259	)		(284	)		(105	)		(61	)		44			(709	)		125
Tax expense (benefit) on net realized gains (losses)		(72	)		(64	)		(7	)		(8	)		(2	)		(151	)		21
Income excluding net realized gains (losses)(1)	$	333		$	153		$	309		$	327		$	329		$	1,122		$	1,269
Combined ratio
Loss and loss expense ratio		64.9	%		85.6	%		70.5	%		64.1	%		70.8	%		71.8	%		71.1	%
Policy acquisition cost ratio		8.1	%		10.1	%		9.5	%		11.9	%		8.6	%		9.9	%		8.6	%
Administrative expense ratio		10.0	%		8.4	%		9.5	%		10.0	%		9.7	%		9.4	%		8.8	%
Combined ratio		83.0	%		104.1	%		89.5	%		86.0	%		89.1	%		91.1	%		88.5	%
Large losses and other items (before tax)
Catastrophe losses (before tax)	$	3		$	258		$	22		$	15		$	—		$	298		$	16
Prior period development - unfavorable (favorable)(2)	$	(102	)	$	(103	)	$	(23	)	$	(79	)	$	1		$	(307	)	$	9
Loss and loss expense ratio excluding catastrophe losses and prior period development		72.0	%		75.1	%		70.6	%		72.1	%		70.8	%		72.6	%		70.6	%
% Change versus prior year period
Net premiums written		-5	%		1	%		1	%		-10	%		-7	%		-3	%		-2	%
Net premiums earned		-3	%		-1	%		-6	%		-12	%		-4	%		-5	%		5	%
Other ratios
Net premiums written/gross premiums written		60	%		49	%		56	%		62	%		60	%		56	%		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 7

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

Insurance - Overseas General

	4Q-08 (2)			3Q-08 (2)			2Q-08 (2)			1Q-08			4Q-07			Full Year 2008			Full Year 2007
Gross premiums written	$	1,609		$	1,678		$	1,876		$	1,778		$	1,584		$	6,941		$	6,291
Net premiums written		1,251			1,293			1,443			1,345			1,169			5,332			4,568
Net premiums earned		1,250			1,425			1,439			1,223			1,229			5,337			4,623
Losses and loss expenses		640			731			715			593			631			2,679			2,420
Future policy benefits		2			5			5			—			—			12			—
Policy acquisition costs		296			329			323			245			269			1,193			963
Administrative expenses		195			217			208			173			175			793			669
Underwriting income		117			143			188			212			154			660			571
Net investment income		134			136			134			117			119			521			450
Net realized gains (losses)		(117	)		(58	)		(58	)		(83	)		(11	)		(316	)		(69	)
Other income (expense)		(3	)		(6	)		17			3			12			11			20
Income tax expense (benefit)		5			10			38			47			59			100			183
Net income		126			205			243			202			215			776			789
Net realized gains (losses)		(117	)		(58	)		(58	)		(83	)		(11	)		(316	)		(69	)
Net realized gains (losses) in other income (expense)		1			(5	)		15			7			15			18			26
Tax expense (benefit) on net realized gains (losses)		(17	)		(16	)		(7	)		(22	)		(1	)		(62	)		(14	)
Income excluding net realized gains (losses)(1)	$	225		$	252		$	279		$	256		$	210		$	1,012		$	818
Combined ratio
Loss and loss expense ratio		51.5	%		51.6	%		50.0	%		48.5	%		51.4	%		50.4	%		52.4	%
Policy acquisition cost ratio		23.7	%		23.1	%		22.4	%		20.0	%		21.8	%		22.4	%		20.8	%
Administrative expense ratio		15.5	%		15.2	%		14.5	%		14.2	%		14.3	%		14.8	%		14.5	%
Combined ratio		90.7	%		89.9	%		86.9	%		82.7	%		87.5	%		87.6	%		87.7	%
Large losses and other items
Catastrophe losses (before tax)	$	(6	)	$	49		$	25		$	15		$	13		$	83		$	94
Prior period development - unfavorable (favorable)	$	(85	)	$	(121	)	$	(54	)	$	(44	)	$	(76	)	$	(304	)	$	(192	)
Loss and loss expense ratio excluding catastrophe losses and prior period development		58.6	%		56.7	%		52.0	%		50.9	%		56.5	%		54.5	%		54.4	%
% Change versus prior year period
Net premiums written		7	%		24	%		24	%		13	%		10	%		17	%		7	%
Net premiums earned		2	%		25	%		26	%		10	%		12	%		15	%		7	%
Other ratios
Net premiums written/gross premiums written		78	%		77	%		77	%		76	%		74	%		77	%		73	%

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

(2) Includes the International operations of Combined Insurance.

Insurance - Overseas General Page 8

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

Global Reinsurance

	4Q-08			3Q-08			2Q-08			1Q-08			4Q-07			Full Year 2008			Full Year 2007
Gross premiums written	$	130		$	174		$	272		$	345		$	177		$	921		$	1,218
Net premiums written		126			174			270			344			174			914			1,197
Net premiums earned		240			257			257			263			312			1,017			1,299
Losses and loss expenses		121			178			108			117			155			524			664
Policy acquisition costs		40			44			54			54			58			192			248
Administrative expenses		13			14			14			15			17			56			64
Underwriting income		66			21			81			77			82			245			323
Net investment income		74			83			79			73			73			309			274
Net realized gains (losses)		(96	)		(2	)		(20	)		(45	)		(3	)		(163	)		21
Other income (expense)		—			(1	)		(1	)		—			(1	)		(2	)		(4	)
Income tax expense (benefit)		6			9			11			4			7			30			32
Net income		38			92			128			101			144			359			582
Net realized gains (losses)		(96	)		(2	)		(20	)		(45	)		(3	)		(163	)		21
Tax expense (benefit) on net realized gains (losses)		(1	)		(1	)		—			(2	)		(1	)		(4	)		(2	)
Income excluding net realized gains (losses)(1)	$	133		$	93		$	148		$	144		$	146		$	518		$	559
Combined ratio
Loss and loss expense ratio		50.3	%		69.2	%		42.1	%		44.5	%		49.8	%		51.5	%		51.1	%
Policy acquisition cost ratio		16.6	%		16.9	%		21.0	%		20.6	%		18.3	%		18.8	%		19.1	%
Administrative expense ratio		5.4	%		5.4	%		5.5	%		5.7	%		5.5	%		5.5	%		4.9	%
Combined ratio		72.3	%		91.5	%		68.6	%		70.8	%		73.6	%		75.8	%		75.1	%
Large losses and other items
Catastrophe losses (before tax)	$	70		$	104		$	11		$	1		$	10			186		$	49
Prior period development - unfavorable (favorable)	$	(65	)	$	(53	)	$	(27	)	$	(14	)	$	(14	)		(159	)	$	(34	)
Loss and loss expense ratio excluding catastrophe losses and prior period development		50.4	%		51.7	%		48.2	%		49.5	%		51.2	%		49.9	%		50.0	%
% Change versus prior year period
Net premiums written		-28	%		-19	%		-19	%		-28	%		-31	%		-24	%		-23	%
Net premiums earned		-23	%		-19	%		-21	%		-23	%		-18	%		-22	%		-14	%
Other ratios
Net premiums written/gross premiums written		97	%		100	%		99	%		100	%		98	%		99	%		98	%

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

Global Reinsurance Page 9

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

Life Insurance and Reinsurance

	4Q-08 (4)			3Q-08 (4)			2Q-08 (4)			1Q-08			4Q-07			Full Year 2008			Full Year 2007
Gross premiums written(1)	$	414		$	381		$	427		$	105		$	109		$	1,327		$	391
Net premiums written		371			348			374			105			111			1,198			381
Net premiums earned		359			344			367			100			98			1,170			368
Losses and loss expenses		106			104			110			—			—			320			—
Future policy benefits		154			86			84			63			60			387			168
Policy acquisition costs		69			48			63			8			9			188			45
Administrative expenses		56			61			69			13			13			199			50
Net investment income		47			40			40			15			15			142			55
Life underwriting income(2)		21			85			81			31			31			218			160
Net realized gains (losses)		(230	)		(180	)		64			(186	)		(108	)		(532	)		(164	)
Other income (expense)		(6	)		(2	)		(4	)		—			(1	)		(12	)		(1	)
Income tax expense (benefit)		5			15			12			(2	)		(4	)		30			(8	)
Net income (loss)		(220	)		(112	)		129			(153	)		(74	)		(356	)		3
Net realized gains (losses)		(230	)		(180	)		64			(186	)		(108	)		(532	)		(164	)
Net realized gains (losses) in other income (expense)		—			2			—			—			1			2			1
Tax expense (benefit) on net realized gains (losses)		(6	)		—			—			—			—			(6	)		—
Income excluding net realized gains (losses)(3)	$	4		$	66		$	65		$	33		$	33		$	168		$	166
% Change versus prior year period
Net premiums written		234	%		266	%		330	%		19	%		42	%		214	%		39	%
Net premiums earned		266	%		262	%		322	%		14	%		26	%		218	%		34	%

(1) Consistent with GAAP, premiums collected on universal life and investment contracts are considered deposits and excluded from revenues. For the quarters ended December 31, 2008; September 30, 2008; June 30, 2008; March 31, 2008; and December 31, 2007, premiums or deposits collected on investment and universal life contracts that are excluded from premium revenue above are $29.2 million, $18.8 million, $30.9 million, $41.2 million, and $27.2 million, respectively. Fees on universal life and investment contracts are revenue for GAAP and have been classified as premium. For the quarters ended December 31, 2008; September 30, 2008; June 30, 2008; March 31, 2008; and December 31, 2007, fees reflected as gross written premiums are $5.6 million, $4.5 million, $4.9 million, $4.4 million, and $4.1 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 10

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)
	4Q-08			3Q-08		2Q-08		1Q-08		4Q-07		3Q-07		2Q-07		1Q-07
Premium	$	29		$	31	$	31	$	32	$	33	$	32	$	31	$	29
less Paid Claims		38			14		8		7		3		3		2		1
Net Cash	$	(9	)	$	17	$	23	$	25	$	30	$	29	$	29	$	28
Living Benefits (Includes GMIB and GMAB)
	4Q-08			3Q-08		2Q-08		1Q-08		4Q-07		3Q-07		2Q-07		1Q-07
Premium	$	37		$	37	$	37	$	34	$	29	$	27	$	26	$	25
less Paid Claims(1)		—			—		—		—		—		—		—		—
Net Cash	$	37		$	37	$	37	$	34	$	29	$	27	$	26	$	25
Total VA Guaranteed Benefits
	4Q-08			3Q-08		2Q-08		1Q-08		4Q-07		3Q-07		2Q-07		1Q-07
Premium	$	66		$	68	$	68	$	66	$	62	$	59	$	57	$	54
less Paid Claims		38			14		8		7		3		3		2		1
Net Cash	$	28		$	54	$	60	$	59	$	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)

Using our current mortality assumptions we expect approximately $164 million of claims and $108 million of premium on death benefits over the next 12 months.

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.

Using our current mortality assumptions we expect approximately $2 million of claims and $138 million of premium on living benefits over the next 12 months.

(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 11

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
Losses and loss expenses incurred		2,554			794			1,760			2,625			907			1,718			(71	)		(113	)		42
Losses and loss expenses paid		(2,764	)		(922	)		(1,842	)		(2,651	)		(773	)		(1,878	)		(113	)		(149	)		36
Other (incl. foreign exch. revaluation)		(987	)		(270	)		(717	)		(987	)		(270	)		(717	)		—			—			—
Balance at December 31, 2008	$	37,176		$	12,935		$	24,241		$	32,045		$	9,766		$	22,279		$	5,131		$	3,169		$	1,962
Add net recoverable on paid losses					982
Reinsurance Recoverable				$	13,917

(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 12

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

Net Reinsurance Recoverable by Division

	December 31			September 30			June 30			March 31			December 31
	2008			2008			2008			2008			2007
Reinsurance recoverable on paid losses and loss expenses
Active operations	$	745		$	643		$	706		$	686		$	697
Brandywine		331			354			327			342			305
Westchester Run-off		34			46			37			34			36
Other Run-off		12			13			15			9			12
Total	$	1,122		$	1,056		$	1,085		$	1,071		$	1,050
Reinsurance recoverable on unpaid losses and loss expenses and benefits
Active operations	$	10,289		$	10,389		$	9,810		$	9,746		$	10,016
Brandywine		2,443			2,675			2,844			3,004			3,161
Westchester Run-off		550			593			615			627			653
Other Run-off		104			163			149			169			160
Total	$	13,386		$	13,820		$	13,418		$	13,546		$	13,990
Gross reinsurance recoverable
Active operations	$	11,034		$	11,032		$	10,516		$	10,432		$	10,713
Brandywine		2,774			3,029			3,171			3,346			3,466
Westchester Run-off		584			639			652			661			689
Other Run-off		116			176			164			178			172
Total	$	14,508		$	14,876		$	14,503		$	14,617		$	15,040
Provision for uncollectible reinsurance
Active operations	$	(398	)	$	(431	)	$	(432	)	$	(444	)	$	(435	)
Brandywine		(155	)		(174	)		(185	)		(189	)		(197	)
Westchester Run-off		(27	)		(31	)		(31	)		(31	)		(31	)
Other Run-off		(11	)		(15	)		(16	)		(16	)		(23	)
Total	$	(591	)	$	(651	)	$	(664	)	$	(680	)	$	(686	)
Net reinsurance recoverable
Active operations	$	10,636		$	10,601		$	10,084		$	9,988		$	10,278
Brandywine		2,619			2,855			2,986			3,157			3,269
Westchester Run-off		557			608			621			630			658
Other Run-off		105			161			148			162			149
Total	$	13,917		$	14,225		$	13,839		$	13,937		$	14,354

Reinsurance Recoverable Page 13

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

Consolidated Reinsurance Recoverable

	September 30, 2008
	Recoverable		Provision (5)		% Of Gross
Categories
Largest Reinsurers(1)	$	9,581	$	142	1.5	%
Other reinsurers balances rated A- or better		1,844		28	1.5	%
Other reinsurers balances with rating lower than A- or not rated		763		155	20.3	%
Other Pools and Government Agencies		184		11	6.0	%
Structured Settlements		551		19	3.4	%
Other Captives		1,536		12	0.8	%
Others(2)		417		284	68.1	%
Total	$	14,876	$	651	4.4	%

At September 30, 2008, $10.9 billion of ACE Limited recoverables were from rated reinsurers, of which 92.9% 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	BBBpi	A
American International Group (AIG)(6)	A+	A
Berkshire Hathaway Insurance Group	AAA	A++
Chubb Insurance Group	AA	A++
Equitas	NL	NL
Everest Re Group	AA-	A+
Fairfax Financial Holdings Ltd.	A-	A-
Federal Crop Insurance Corp	U.S. Federal Gov.	U.S. Federal Gov.
HDI (Hannover Re)	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(7)	A	A

(1) The Largest Reinsurers includes all reinsurers where gross recoverable exceeds 1% of ACE shareholders’ equity. Total ACE shareholders’ equity at September 30, 2008 was $15.356 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 59.3% of total recoverables at September 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 $549.5 million at September 30, 2008, of which $433.4 million (78.9%) were with Transatlantic Reinsurance Co.

(7) Gross recoverables with XL Capital Group were $351.2 million at September 30, 2008. The balance was $358.3 million at December 31, 2008, however, we were able to obtain $59 million of additional usable collateral in the 4th quarter to support this balance.

Reinsurance Recoverable - 2 Page 14

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	$	736		$	320		$	1,056
Provision at 9/30/08		35			129			164
% of gross		4.8	%		40.3	%		15.5	%
Net balance at September 30, 2008	$	701		$	191		$	892
Gross balance at December 31, 2008	$	782		$	340		$	1,122
Provision at 12/31/08		30			110			140
% of gross		3.8	%		32.4	%		12.5	%
Net balance at December 31, 2008 (3)	$	752		$	230		$	982

(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 15

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

	December 31 2008					September 30 2008					June 30 2008					March 31 2008					December 31 2007
Market Value
Fixed maturities available for sale	$	31,155				$	33,158				$	34,870				$	32,619				$	33,184
Fixed maturities held to maturity		2,865					2,852					2,932					2,960					3,015
Short-term investments		3,350					3,014					3,137					4,795					2,631
Total	$	37,370				$	39,024				$	40,939				$	40,374				$	38,830
Asset Allocation by Market Value
Treasury	$	1,018		3	%	$	1,122		3	%	$	1,043		2	%	$	974		2	%	$	1,145		3	%
Agency		2,027		5	%		1,816		5	%		1,677		4	%		1,939		5	%		1,820		5	%
Corporate		8,744		23	%		8,779		22	%		9,689		25	%		8,906		22	%		9,015		23	%
Mortgage-backed securities		10,986		29	%		12,451		32	%		12,674		31	%		13,087		32	%		13,733		35	%
Asset-backed securities		709		2	%		837		2	%		1,041		2	%		1,060		3	%		1,150		3	%
Municipal		2,124		6	%		1,833		5	%		1,950		5	%		2,025		5	%		1,844		5	%
Non-U.S.		8,412		23	%		9,172		23	%		9,728		23	%		7,588		19	%		7,492		19	%
Short-term investments		3,350		9	%		3,014		8	%		3,137		8	%		4,795		12	%		2,631		7	%
Total	$	37,370		100	%	$	39,024		100	%	$	40,939		100	%	$	40,374		100	%	$	38,830		100	%
Note: Insured municipal bonds represent $1,043 million, or 49% of our municipal bond holdings.
Credit Quality by Market Value
AAA	$	22,960		61	%	$	23,995		62	%	$	24,740		60	%	$	26,162		65	%	$	24,553		63	%
AA		3,374		9	%		3,943		10	%		4,285		10	%		3,746		9	%		3,747		10	%
A		5,497		15	%		4,969		13	%		5,572		14	%		4,620		12	%		4,590		12	%
BBB		3,388		9	%		3,407		9	%		3,463		9	%		3,188		8	%		3,297		8	%
BB		1,119		3	%		1,296		3	%		1,390		3	%		1,249		3	%		1,073		3	%
B		934		3	%		1,315		3	%		1,416		4	%		1,341		3	%		1,481		4	%
Other		98		0	%		99		0	%		73		0	%		68		0	%		89		0	%
Total	$	37,370		100	%	$	39,024		100	%	$	40,939		100	%	$	40,374		100	%	$	38,830		100	%
Cost/Amortized Cost
Fixed maturities available for sale	$	33,109				$	34,609				$	35,355				$	32,615				$	32,994
Fixed maturities held to maturity		2,860					2,881					2,932					2,913					2,987
Short-term investments		3,350					3,014					3,137					4,795					2,631
Subtotal		39,319					40,504					41,424					40,323					38,612
Equity securities		1,132					1,336					1,502					1,597					1,618
Other investments		1,368					1,327					1,182					992					880
Total	$	41,819				$	43,167				$	44,108				$	42,912				$	41,110
Avg. duration of fixed maturities		3.6 years					3.8 years					3.7 years					3.5 years					3.5 years
Avg. market yield of fixed maturities		6.4	%				6.1	%				5.6	%				5.1	%				5.3	%
Avg. credit quality		AA					AA					AA					AA					AA

Investments Page 16

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

Mortgage-backed and Asset-backed Fixed Income Portfolio

Market Value at December 31, 2008

	S&P Credit Rating
	AAA		AA		A		BBB		BB and below		Total
Mortgage-backed securities
Residential mortgage-backed (RMBS)
GNMA	$	406	$	—	$	—	$	—	$	—	$	406
FNMA		4,483		—		—		—		—		4,483
Freddie Mac		2,071		—		—		—		—		2,071
Total agency RMBS		6,960		—		—		—		—		6,960
Non-agency RMBS		1,764		56		34		24		7		1,885
Total residential mortgage-backed		8,724		56		34		24		7		8,845
Commercial mortgage-backed		2,126		4		9		2		—		2,141
Total mortgage-backed securities	$	10,850	$	60	$	43	$	26	$	7	$	10,986
Asset-backed securities
Sub-prime	$	60	$	5	$	6	$	1	$	4	$	76
Credit cards		53		—		15		6		—		74
Autos		312		44		5		8		—		369
Other		183		3		3		1		—		190
Total asset-backed securities	$	608	$	52	$	29	$	16	$	4	$	709

Insured asset-backed securities represent $118 million, or 17% of our asset-backed security holdings.

Investments 2 Page 17

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

Mortgage-backed and Asset-backed Fixed Income Portfolio

Market Value at December 31, 2008

Mortgage-backed securities total $11 billion, are rated predominantly AAA and comprise 29% 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 sub-prime backed securities in 3Q 2007 and ALT-A, credit card, and auto backed securities in 1Q 2008.

Securities issued by Federal agencies with implied or explicit government guarantees total $7 billion and represent 79% 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 67% 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 27% and real estate values would have to fall 61% before principal is impaired. The comparable historical cumulative foreclosure rate is 2.9% for prime mortgages.

Within the portfolio of prime AAA non-agency RMBS are $152 million of holdings classified as ALT-A. These ALT-A holdings are broadly diversified with over 60% issued prior to 2006. The average FICO score is 714 with a relatively conservative loan-to-value ratio of 70%. With subordinated collateral of 19%, the cumulative 4-year foreclosure rate would have to rise to 40% and real estate values would have to fall more than 59% before principal is impaired. The comparable historical cumulative foreclosure rate is approximately 8.25%.

Commercial mortgage-backed securities of $2.1 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 27%. The cumulative foreclosure rate would have to rise to 63% and commercial real estate values would have to fall more than 64% before principal is impaired. The historical annual delinquency rate is 1%.

Sub-prime asset-backed securities (current holdings of $76 million) are rated predominantly AAA, broadly diversified in over 115,000 loans with an average loan-to-value ratio of approximately 80% and an average FICO score of 605. With subordinated collateral of 35%, 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 30%. 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 13%. Annual default rates would have to rise to 16 times their level of about 1.9% before principal is impaired.

Investments 3 Page 18

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

Mortgage-backed and Asset-backed Fixed Income Portfolio

Amortized Cost at December 31, 2008

	S&P Credit Rating
	AAA		AA		A		BBB		BB and below		Total
Mortgage-backed securities
Residential mortgage-backed (RMBS)
GNMA	$	395	$	—	$	—	$	—	$	—	$	395
FNMA		4,340		—		—		—		—		4,340
Freddie Mac		1,999		—		—		—		—		1,999
Total agency RMBS		6,734		—		—		—		—		6,734
Non-agency RMBS		2,454		84		63		43		7		2,651
Total residential mortgage-backed		9,188		84		63		43		7		9,385
Commercial mortgage-backed		2,434		4		9		3		—		2,450
Total mortgage-backed securities	$	11,622	$	88	$	72	$	46	$	7	$	11,835
Asset-backed securities
Sub-prime	$	77	$	6	$	8	$	1	$	4	$	96
Credit cards		55		—		16		8		—		79
Autos		324		49		5		9		—		387
Other		187		5		3		—		—		195
Total asset-backed securities	$	643	$	60	$	32	$	18	$	4	$	757

Insured asset-backed securities represent $126 million, or 17% of our asset-backed security holdings.

Investments 4 Page 19

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

Market Value at December 31, 2008

	S&P Credit Rating
	AAA		AA		A		BBB		Total
U.S. Investment Grade Corporate Fixed Income Portfolio
Banks	$	112	$	539	$	1,720	$	105	$	2,476
Basic Materials		—		—		20		72		92
Communications		—		—		346		427		773
Consumer, Cyclical		6		57		127		96		286
Consumer, Non-Cyclical		12		51		325		163		551
Diversified Financial Services		29		61		136		111		337
Energy		—		8		142		393		543
Industrial		383		23		173		136		715
Utilities		—		8		214		365		587
All Others		64		119		230		120		533
Total	$	606	$	866	$	3,433	$	1,988	$	6,893

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+. As noted on the Investment Portfolio summary 65% 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 diversified across industries and geographies. Issuer limits are based on credit rating (AA 2%, A 1%, BBB 0.5% of total portfolio) and are monitored on a daily basis by ACE via an internal compliance system.

Investments 5 Page 20

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

Market Value at December 31, 2008

	S&P Credit Rating
	BB		B		CCC		Other		Total
Below Investment Grade Corporate Fixed Income Portfolio
Basic Materials	$	73	$	34	$	3	$	2	$	112
Communications		209		130		4		—		343
Consumer, Cyclical		101		110		18		3		232
Consumer, Non-Cyclical		130		223		14		3		370
Diversified Financial Services		1		12		1		17		31
Energy		189		111		1		1		302
Industrial		126		97		2		—		225
Utilities		85		89		—		—		174
All Others		22		35		4		1		62
Total	$	936	$	841	$	47	$	27	$	1,851

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 $31 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 21

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

Market Value at December 31, 2008

	S&P Credit Rating
	AAA		AA		A		BBB		BB and below		Total
Non-U.S. Fixed Income Portfolio
United Kingdom	$	1,050	$	—	$	—	$	—	$	—	$	1,050
Germany		267		—		—		—		—		267
France		315		—		—		—		—		315
Canada		699		2		7		—		—		708
Japan		—		206		—		—		—		206
Other Foreign Government		851		265		323		187		20		1,646
Non-U.S. Corporate		653		714		1,508		1,091		254		4,220
	$	3,835	$	1,187	$	1,838	$	1,278	$	274	$	8,412

Non-U.S. Fixed Income Portfolio

ACE’s non-U.S. investment grade fixed income portfolios are currency-matched with the insurance liabilities of ACE’s non-U.S. operations. 93% of ACE’s non-U.S. fixed income is denominated in G7 currencies.

Average credit quality of non-U.S. fixed income securities is very high at AA and 58% 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 0.5% of total portfolio) and are monitored on a daily basis by ACE via an internal compliance system.

Investments 7 Page 22

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

Investment portfolio

Top 25 Exposures - Fixed Maturity Investments

December 31, 2008			Rating
General Electric Co	$	459	AAA
JP Morgan Chase & Co		365	A+
Bank of America Corp		322	A+
Citigroup Inc		293	A
AT&T INC		189	A
Wells Fargo & Co		187	AA
Goldman Sachs Group Inc		179	A
HSBC Holdings Plc		178	AA-
Wachovia Corp		166	A+
Comcast Corp		158	BBB+
Morgan Stanley		155	A
Time Warner Inc		155	BBB+
Merrill Lynch & Co Inc		148	A+
Royal Bank of Scotland Group Plc		139	A
Verizon Communications Inc		138	A
ConocoPhillips		115	A
Credit Suisse Group		106	A
XTO Energy Inc		96	BBB
Banco Santander SA		95	AA
HBOS PLC		87	A+
Deutsche Telekom AG		87	BBB+
Telecom Italia SpA		86	BBB
American International Group		83	A-
Dominion Resources Inc/VA		76	A-
American Express		74	A

Investments 8 Page 23

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

	Three months ended December 31, 2008									Year ended December 31, 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	$	(271	)	$	(486	)	$	(757	)	$	(846	)	$	(2,091	)	$	(2,937	)
Equity securities		(182	)		(37	)		(219	)		(349	)		(363	)		(712	)
Equity and fixed income derivatives		7			—			7			(3	)		—			(3	)
Foreign exchange gains (losses)		(10	)		—			(10	)		23			—			23
Other		(36	)		(225	)		(261	)		(55	)		(313	)		(368	)
Sub-total		(492	)		(748	)		(1,240	)		(1,230	)		(2,767	)		(3,997	)
Mark-to-market gains (losses) from derivative transactions(2)		(152	)		—			(152	)		(403	)		—			(403	)
Total gains (losses)		(644	)		(748	)		(1,392	)		(1,633	)		(2,767	)		(4,400	)
Partially-owned insurance companies(3)		(48	)		14			(34	)		21			8			29
Income tax expense (benefit)		(88	)		(140	)		(228	)		(218	)		(457	)		(675	)
Net gains (losses)	$	(604	)	$	(594	)	$	(1,198	)	$	(1,394	)	$	(2,302	)	$	(3,696	)

(1) Impairments for the quarter of $441M include $265M for fixed maturities, $145M for equities, and $31 for other investments. Impairments for the year of $1,064M include $760M for fixed maturities, $248M for equities, and $56M for other investments.

(2) Includes $207M and $486M 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 December 31, 2007									Year ended December 31, 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	$	(8	)	$	185		$	177		$	(98	)	$	48		$	(50	)
Equity securities		20			(107	)		(87	)		162			(122	)		40
Equity and fixed income derivatives		(5	)		—			(5	)		(19	)		—			(19	)
Foreign exchange gains (losses)		1			—			1			4			—			4
Other		19			28			47			37			73			110
Total inv. portfolio gains (losses)		27			106			133			86			(1	)		85
Mark-to-market gains (losses) from derivative transactions(5)		(93	)		—			(93	)		(147	)		—			(147	)
Total gains (losses)		(66	)		106			40			(61	)		(1	)		(62	)
Partially-owned insurance companies(6)		(57	)		33			(24	)		(95	)		25			(70	)
Income tax expense (benefit)		(2	)		33			31			(22	)		23			1
Net gains (losses)	$	(121	)	$	106		$	(15	)	$	(134	)	$	1		$	(133	)

(4) Impairments for the quarter of $69M include $60M for fixed maturities and $9M for equities. Impairments for the year of $141M include $123M for fixed maturities, $16M for equities and $2M for other investments.

(5) Includes $105M and $163M of unrealized losses primarily on the guaranteed minimum income benefit derivatives from our life reinsurance operations for the quarter and year to date, respectively.

(6) 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).

Investment Gains (Losses) Page 24

ACE Limited Investment Portfolio Net Realized Gains (Losses) and Other-than-Temporary Impairments (in millions of U.S. dollars) (Unaudited)

	Three months ended December 31, 2008
	Net Realized Gains (Losses)			Price Impairment			Credit Impairment			All Other Activity
Investment Grade Corp	$	(34	)	$	(52	)	$	(20	)	$	38
High Yield Corp		(205	)		(154	)		(9	)		(42	)
MBS / ABS		3			(30	)		—			33
Convertible Bonds		(35	)		—			—			(35	)
Fixed maturities		(271	)		(236	)		(29	)		(6	)
Equity securities		(182	)		(145	)		—			(37	)
Equity and fixed income derivatives		7			—			—			7
Foreign exchange gains (losses)		(10	)		—			—			(10	)
Other		(36	)		(31	)		—			(5	)
Sub-total	$	(492	)	$	(412	)	$	(29	)	$	(51	)

Investment Gains (Losses) OTTI Page 25

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

	December 31 2008			September 30 2008			June 30 2008			March 31 2008			December 31 2007			December 31 2006
Total short-term debt(1)	$	471		$	333		$	1,050		$	1,341		$	372		$	578
Total long-term debt		2,806			3,002			3,008			2,114			1,811			1,560
Total debt	$	3,277		$	3,335		$	4,058		$	3,455		$	2,183		$	2,138
Total trust preferred securities	$	309		$	309		$	309		$	309		$	309		$	309
Perpetual preferred shares	$	—		$	—		$	—		$	557		$	557		$	557
Common shareholders’ equity		14,446			15,356			16,327			16,178			16,120			13,721
Total shareholders’ equity	$	14,446		$	15,356		$	16,327		$	16,735		$	16,677		$	14,278
Total capitalization	$	18,032		$	19,000		$	20,694		$	20,499		$	19,169		$	16,725
Tangible shareholders’ equity(2)	$	10,699		$	11,539		$	12,715		$	13,856		$	13,839		$	11,439
Leverage ratios
Debt/ total capitalization		18.2	%		17.6	%		19.6	%		16.9	%		11.4	%		12.8	%
Debt plus trust preferred securities/ total capitalization		19.9	%		19.2	%		21.1	%		18.4	%		13.0	%		14.6	%
Debt/ tangible equity		30.6	%		28.9	%		31.9	%		24.9	%		15.8	%		18.7	%
Debt plus trust preferred securities/ tangible equity		33.5	%		31.6	%		34.3	%		27.2	%		18.0	%		21.4	%
Debt plus total preferred stock/ total capitalization		19.9	%		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
Reverse Repurchase Agreements	$	250		2.26	%	February 4, 2009
ACE INA Holdings Inc. Term Loan	$	16		3.02	%	September 18, 2009
ACE INA Holdings Inc Subordinated Notes	$	200		8.41	%	December 6, 2009
ACE European Holdings No2 Limited Term Loan	$	146		5.25	%	December 13, 2010
ACE INA Holdings Inc. Term Loan	$	50		5.61	%	December 19, 2011
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	$	782		November 8, 2012
Revolving Credit / LOC Facility	$	500	$	64		November 8, 2012
Funds at Lloyds Capital Facility	$	438	$	256		December 31, 2013

Capital Structure (2) Page 27

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

	Three months ended December 31						Year ended December 31
	2008			2007			2008			2007
Numerator
Income excluding net realized gains (losses) (1)	$	624		$	693		$	2,591		$	2,712
Perpetual preferred dividend		—			(12	)		(24	)		(45	)
Income to common shares, excl. net realized gains (losses)		624			681			2,567			2,667
Net realized gains (losses), net of income tax		(604	)		(121	)		(1,394	)		(134	)
Net income available to the holders of common shares		20			560			1,173			2,533
Rollforward of Common Shares Outstanding
Shares - beginning of period		333,394,608			329,460,367			329,704,531			326,455,468
Issued under employee stock purchase plan		(80	)		—			203,375			205,396
Shares (cancelled) granted		(7,101	)		(46,477	)		1,086,832			1,212,603
Issued for option exercises		258,044			290,641			2,650,733			1,831,064
Shares - end of period		333,645,471			329,704,531			333,645,471			329,704,531
Denominator
Weighted average shares outstanding		329,379,719			325,611,204			328,579,543			324,938,327
Effect of other dilutive securities		3,468,141			5,645,111			3,902,084			5,509,394
Adj. wtd. avg. shares outstanding and assumed conversions		332,847,860			331,256,315			332,481,627			330,447,721
Basic earnings per share
Income excluding net realized gains (losses) (1)	$	1.89		$	2.09		$	7.81		$	8.21
Net realized gains (losses), net of income tax		(1.83	)		(0.37	)		(4.24	)		(0.42	)
Net income	$	0.06		$	1.72		$	3.57		$	7.79
Diluted earnings per share
Income excluding net realized gains (losses) (1)	$	1.87		$	2.05		$	7.72		$	8.07
Net realized gains (losses), net of income tax		(1.81	)		(0.36	)		(4.19	)		(0.41	)
Net income	$	0.06		$	1.69		$	3.53		$	7.66

(1) See page 31 Non-GAAP Financial Measures.

Earnings 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 generally accepted accounting principles (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 GAAP.

	4Q-08			3Q-08			2Q-08			1Q-08			4Q-07			Full Year 2008			Full Year 2007
Net income, as reported	$	20		$	54		$	746		$	377		$	572		$	1,197		$	2,578
Net realized gains (losses)		(644	)		(510	)		(126	)		(353	)		(66	)		(1,633	)		(61	)
Net realized gains (losses) in other income (expense) (1)		(48	)		(23	)		120			(28	)		(57	)		21			(95	)
Income tax expense (benefit) on net realized gains (losses)		(88	)		(83	)		(14	)		(33	)		(2	)		(218	)		(22	)
Income excluding net realized gains (losses)	$	624		$	504		$	738		$	725		$	693		$	2,591		$	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 and Book Value per Common Share (in millions of U.S. dollars, except share and per share data) (Unaudited)

Reconciliation of Book Value per Common Share

	December 31 2008			September 30 2008			June 30 2008			March 31 2008			December 31 2007
Shareholders’ equity	$	14,446		$	15,356		$	16,327		$	16,735		$	16,677
Proceeds from issuance of perpetual preferred shares		—			—			—			(557	)		(557	)
Numerator for book value per share calculation		14,446			15,356			16,327			16,178			16,120
Less: goodwill and other intangible assets		3,747			3,817			3,612			2,879			2,838
Numerator for tangible book value per share	$	10,699		$	11,539		$	12,715		$	13,299		$	13,282
Denominator		333,645,471			333,394,608			333,249,308			332,506,547			329,704,531
Book value per common share	$	43.30		$	46.06		$	48.99		$	48.65		$	48.89
Tangible book value per common share	$	32.07		$	34.61		$	38.15		$	40.00		$	40.28
Reconciliation of Book Value
Opening shareholders’ equity	$	15,356		$	16,327		$	16,735		$	16,677		$	16,035
Income excluding net realized gains (losses)		624			504			738			725			693
Net realized gains (losses), net of tax		(604	)		(450	)		8			(348	)		(121	)
Net unrealized gains (losses), net of tax		(594	)		(874	)		(532	)		(302	)		106
Cumulative translation, net of tax		(310	)		(98	)		3			13			8
Dividend on common shares		(91	)		(87	)		(96	)		(90	)		(89	)
Redemption of perpetual preferred shares		—			—			(575	)		—			—
Other (1)		65			34			46			60			45
	$	14,446		$	15,356		$	16,327		$	16,735		$	16,677

(1) Other includes proceeds from exercise of stock options, change in minimum pension liability, and stock compensation expenses.

Reconciliation Book Value Page 30

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

Consolidated Statement of Comprehensive Income

	4Q-08			3Q-08			2Q-08			1Q-08			4Q-07			Full Year 2008			Full Year 2007
Net income	$	20		$	54		$	746		$	377		$	572		$	1,197		$	2,578
Net unrealized appreciation (depreciation) on investments
Unrealized appreciation (depreciation) on investments		(1,198	)		(1,522	)		(731	)		(497	)		133			(3,948	)		(3	)
Reclassification adjustment for net realized gains (losses) included in net income		464			383			169			173			6			1,189			27
Change in cumulative translation adjustments		(468	)		(155	)		6			27			12			(590	)		105
Change in minimum pension liability		17			5			1			—			(1	)		23			(4	)
Income tax (expense) benefit related to other comprehensive income items		292			320			27			8			(37	)		647			(60	)
Other comprehensive income (loss)		(893	)		(969	)		(528	)		(289	)		113			(2,679	)		65
Comprehensive income (loss)	$	(873	)	$	(915	)	$	218		$	88		$	685		$	(1,482	)	$	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 intangible 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