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@acegroup.com	Cautionary Statement Regarding Forward-Looking Statements:
	Any forward-looking statements made in this financial supplement reflect the company’s current views with respect to future events and financial performance and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements involve risks and uncertainties which may cause actual results to differ materially from those set forth in these statements. For example, the company’s forward-looking statements, such as statements concerning exposures, reserves and recoverables, could be affected by the frequency of unpredictable catastrophic events, actual loss experience, uncertainties in the reserving or settlement process, new theories of liability, judicial, legislative, regulatory and other governmental developments, litigation tactics and developments, investigation developments and actual settlement terms, the amount and timing of reinsurance receivable and credit developments among reinsurers.
	The company’s forward-looking statements could also be affected by competition, pricing and policy term trends, market acceptance, changes in demand, actual market developments, rating agency action, possible terrorism or the outbreak and effects of war. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the dates on which they are made. The company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

ACE Limited Financial Supplement Table of Contents

		Page
I.	Financial Highlights
	- Consolidated Financial Highlights	1
II.	Consolidated Results
	- Consolidated Results - Consecutive Quarters	2
	- Summary Consolidated Balance Sheets	3
	- Consolidated Premiums and Income Excluding Net Realized Gains (Losses) by Line of Business	4 - 5
	- Consolidating Statement of Operations	6 - 7
III.	Segment Results
	- Insurance - North American	8
	- Insurance - Overseas General	9
	- Global Reinsurance	10
	- Life	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 - 26
	- Capital Structure	27 - 28
	- Computation of Basic and Diluted Earnings Per Share	29
V.	Other Disclosures
	- Non-GAAP Financial Measures	30
	- Book Value and Book Value per Common Share	31
	- Comprehensive Income	32
	- Glossary	33

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

`	Three months ended June 30						% Change 2Q-09 vs. 2Q-08		Constant $ 2008(2)		% Change 2Q-09 vs. 2Q-08 (2)		Six months ended June 30						% Change YTD-09 vs. YTD-08		Constant $ 2008 (2)		% Change YTD-09 vs. YTD-08 (2)
	2009			2008									2009			2008
Gross premiums written	$	5,117		$	5,293		-3	%	$	5,001	2	%	$	9,652		$	9,702		-1	%	$	9,180	5	%
Net premiums written	$	3,415		$	3,598		-5	%	$	3,373	1	%	$	6,839		$	6,752		1	%	$	6,353	8	%
Net premiums earned	$	3,266		$	3,428		-5	%	$	3,193	2	%	$	6,460		$	6,368		1	%	$	5,956	8	%
Net investment income	$	506		$	532		-5	%	$	516	-2	%	$	1,008		$	1,021		-1	%	$	995	1	%
Net income	$	535		$	746		-28	%					$	1,102		$	1,123		-2	%
Income excluding net realized gains (losses) (1)	$	706		$	738		-4	%	$	699	1	%	$	1,375		$	1,463		-6	%	$	1,395	-1	%
Comprehensive income	$	1,690		$	218		NM						$	2,027		$	306		NM
Operating cash flow	$	760		$	1,067		-29	%					$	1,322		$	2,082		-37	%
Combined ratio
Loss and loss expense ratio		58.2	%		58.5	%								58.9	%		57.1	%
Underwriting and administrative expense ratio		29.5	%		29.3	%								28.7	%		29.1	%
Combined ratio		87.7	%		87.8	%								87.6	%		86.2	%
Annualized ROE*		18.0	%		17.8	%								17.7	%		17.7	%
Annualized ROE, excluding FAS 115*		16.5	%		17.9	%								16.3	%		17.9	%
Effective tax rate on income excluding net realized gains (losses)		17	%		17	%								17	%		19	%
Diluted earnings per share
Income excluding net realized gains (losses) (1)	$	2.09		$	2.16		-3	%					$	4.08		$	4.31		-5	%
Net income	$	1.58		$	2.18		-28	%					$	3.27		$	3.29		-1	%
Book value per common share	$	49.27		$	48.99		NM						$	49.27		$	48.99		NM
Tangible book value per common share	$	38.10		$	38.15		NM						$	38.10		$	38.15		NM
Weighted average basic common shares outstanding		336.9			333.2									336.2			332.0
Weighted average diluted common shares outstanding		337.5			335.5									336.5			334.2
Debt/total capitalization		17.3	%		19.6	%								17.3	%		19.6	%

(1) See page 30 Non-GAAP Financial Measures.

(2) Prior year on a constant dollar basis.

* Calculated using income excluding net realized gains (losses)

Financial Highlights Page 1

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

ACE Limited Consolidated

	2Q-09			1Q-09			4Q-08			3Q-08			2Q-08			YTD 2009			YTD 2008			Full Year 2008
Consolidated Results Excluding Life Segment
Gross premiums written	$	4,733		$	4,150		$	3,906		$	4,839		$	4,866		$	8,883		$	9,170		$	17,915
Net premiums written		3,048			3,078			2,681			2,928			3,224			6,126			6,273			11,882
Net premiums earned		2,902			2,859			2,867			3,265			3,061			5,761			5,901			12,033
Losses and loss expenses		1,688			1,704			1,654			2,265			1,785			3,392			3,364			7,283
Policy benefits		1			2			2			5			5			3			5			12
Policy acquisition costs		468			434			448			533			506			902			966			1,947
Administrative expenses		390			362			388			396			392			752			754			1,538
Underwriting income excluding life segment	$	355		$	357		$	375		$	66		$	373		$	712		$	812		$	1,253
Life underwriting income excluding investment income		35			21			(26	)		45			41			56			57			76
Net investment income		506			502			521			520			532			1,008			1,021			2,062
Net realized gains (losses)		(225	)		(121	)		(644	)		(510	)		(126	)		(346	)		(479	)		(1,633	)
Interest expense		56			53			54			68			62			109			108			230
Other income (expense)(1)		21			(14	)		(65	)		(6	)		125			7			110			39
Income tax expense (benefit)		101			125			87			(7	)		137			226			290			370
Net income	$	535		$	567		$	20		$	54		$	746		$	1,102		$	1,123		$	1,197
Net realized gains (losses)		(225	)		(121	)		(644	)		(510	)		(126	)		(346	)		(479	)		(1,633	)
Net realized gains (losses) in other income (expense) (1)		8			3			(48	)		(23	)		120			11			92			21
Tax expense (benefit) on net realized gains (losses)		(46	)		(16	)		(88	)		(83	)		(14	)		(62	)		(47	)		(218	)
Income excluding net realized gains (losses)(2)	$	706		$	669		$	624		$	504		$	738		$	1,375		$	1,463		$	2,591
% Change versus prior year period (3)
Net premiums written		-5	%		1	%		-1	%		8	%		8	%		-2	%		2	%		2	%
Net premiums earned		-5	%		1	%		-3	%		7	%		5	%		-2	%		0	%		1	%
Other ratios
Net premiums written/gross premiums written		64	%		74	%		69	%		61	%		66	%		69	%		68	%		66	%
Effective tax rate on income excluding net realized gains (losses)		17	%		17	%		22	%		13	%		17	%		17	%		19	%		18	%
Combined ratio(3)
Loss and loss expense ratio		58.2	%		59.7	%		57.8	%		69.5	%		58.5	%		58.9	%		57.1	%		60.6	%
Policy acquisition cost ratio		16.1	%		15.2	%		15.6	%		16.3	%		16.5	%		15.7	%		16.3	%		16.2	%
Administrative expense ratio		13.4	%		12.6	%		13.5	%		12.1	%		12.8	%		13.0	%		12.8	%		12.8	%
Combined ratio		87.7	%		87.5	%		86.9	%		97.9	%		87.8	%		87.6	%		86.2	%		89.6	%
Expense ratio		29.5	%		27.8	%		29.1	%		28.4	%		29.3	%		28.7	%		29.1	%		29.0	%
Expense ratio excluding A&H		24.8	%		23.7	%		24.3	%		24.0	%		25.2	%		24.2	%		25.5	%		24.8	%
Large losses and other items (before tax)(3)
Reinstatement premiums (expensed) collected	$	—		$	1		$	4		$	(7	)	$	—		$	1		$	—		$	(3	)
Catastrophe losses	$	31		$	38		$	67		$	411		$	58		$	69		$	89		$	567
Prior period development excluding Life - unfavorable (favorable)(4)	$	(158	)	$	(68	)	$	(252	)	$	(277	)	$	(104	)	$	(226	)	$	(241	)	$	(770	)
Loss and loss expense ratio excluding catastophe losses and prior period development		62.6	%		60.7	%		64.4	%		65.2	%		60.0	%		61.6	%		60.4	%		62.7	%

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

(2) See page 30 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 YTD 2008, prior period favorable development of $285 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)

	June 30 2009			March 31 2009			December 31 2008
	(Unaudited)			(Unaudited)			(Audited)
Assets
Fixed maturities available for sale, at fair value	$	35,697		$	31,355		$	31,155
Fixed maturities held to maturity, at amortized cost		3,517			2,824			2,860
Equity securities, at fair value		423			854			988
Short-term investments, at fair value		2,081			3,909			3,350
Other investments		1,363			1,298			1,362
Total investments		43,081			40,240			39,715
Cash		654			844			867
Securities lending collateral		1,370			1,376			1,230
Insurance and reinsurance balances receivable		4,016			3,853			3,453
Reinsurance recoverable on losses and loss expenses		13,430			13,713			13,917
Deferred policy acquisition costs		1,376			1,268			1,214
Value of business acquired		793			785			823
Prepaid reinsurance premiums		1,911			1,593			1,539
Goodwill and other intangible assets		3,756			3,735			3,747
Deferred tax assets		1,579			1,952			1,835
Investments in partially owned insurance companies		462			886			832
Other assets		3,227			2,882			2,885
Total assets	$	75,655		$	73,127		$	72,057
Liabilities
Unpaid losses and loss expenses	$	37,268		$	36,931		$	37,176
Unearned premiums		6,725			6,186			5,950
Future policy benefits		2,984			2,915			2,904
Insurance and reinsurance balances payable		3,075			2,981			2,841
Securities lending payable		1,427			1,463			1,296
Payable for securities purchased		1,082			1,333			740
Accounts payable, accrued expenses, and other liabilities		2,686			3,023			3,118
Short-term debt		216			466			471
Long-term debt		3,322			2,802			2,806
Trust preferred securities		309			309			309
Total liabilities		59,094			58,409			57,611
Shareholders’ equity
Total shareholders’ equity, excl. AOCI		17,552			16,864			16,362
Accumulated other comprehensive income (AOCI)		(991	)		(2,146	)		(1,916	)
Total shareholders’ equity		16,561			14,718			14,446
Total liabilities and shareholders’ equity	$	75,655		$	73,127		$	72,057
Book value per common share(1)	$	49.27		$	43.82		$	43.30
Tangible book value per common share(1)	$	38.10		$	32.70		$	32.07

(1) See page 30 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

	2Q-09		% of Total Consolidated		2Q-08		% of Total Consolidated		% Change 2Q-09 vs. 2Q-08		YTD 2009		% of Total Consolidated		YTD 2008		% of Total Consolidated		% Change YTD-09 vs. YTD-08
Net premiums written
Property and all other	$	1,188	35	%	$	1,103	31	%	8	%	$	2,339	34	%	$	2,184	33	%	7	%
Casualty		1,318	38	%		1,486	41	%	-11	%		2,699	40	%		2,962	44	%	-9	%
Subtotal		2,506	73	%		2,589	72	%	-3	%		5,038	74	%		5,146	77	%	-2	%
Personal accident (A&H)(1)		772	23	%		886	25	%	-13	%		1,532	22	%		1,378	20	%	11	%
Life(2)		137	4	%		123	3	%	11	%		269	4	%		228	3	%	18	%
Total Consolidated	$	3,415	100	%	$	3,598	100	%	-5	%	$	6,839	100	%	$	6,752	100	%	1	%
Net premiums earned
Property and all other	$	998	31	%	$	959	28	%	4	%	$	1,981	31	%	$	1,840	29	%	8	%
Casualty		1,372	42	%		1,474	43	%	-7	%		2,739	42	%		2,972	46	%	-8	%
Subtotal		2,370	73	%		2,433	71	%	-3	%		4,720	73	%		4,812	75	%	-2	%
Personal accident (A&H)(1)		766	23	%		875	25	%	-12	%		1,486	23	%		1,336	21	%	11	%
Life(2)		130	4	%		120	4	%	8	%		254	4	%		220	4	%	15	%
Total Consolidated	$	3,266	100	%	$	3,428	100	%	-5	%	$	6,460	100	%	$	6,368	100	%	1	%
Income excluding net realized gains (losses)
Property, casualty, and all other	$	580	82	%	$	561	76	%	3	%	$	1,132	82	%	$	1,176	80	%	-4	%
Personal accident (A&H)(1)		87	12	%		138	19	%	-37	%		178	13	%		215	15	%	-17	%
Life(2)		39	6	%		39	5	%	-	%		65	5	%		72	5	%	-10	%
Total Consolidated	$	706	100	%	$	738	100	%	-4	%	$	1,375	100	%	$	1,463	100	%	-6	%

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

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

Line of Business Page 4

ACE Limited Consolidated Premiums and Income Excluding Net Realized Gains (Losses) by Line of Business, Adjusted for Foreign Exchange (in millions of U.S. dollars) (Unaudited)

ACE Limited Consolidated

	2Q-09		% of Total Consolidated		2Q-08		% of Total Consolidated		% Change 2Q-09 vs. 2Q-08		Constant $ 2Q-08 (3)		Constant $ % of Total Consolidated		Constant $ % Change 2Q-09 vs. 2Q-08 (3)
Net premiums written
Property, casualty, and all other	$	2,506	73	%	$	2,589	72	%	-3	%	$	2,469	73	%	1	%
Personal accident (A&H)(1)		772	23	%		886	25	%	-13	%		783	23	%	-1	%
Life(2)		137	4	%		123	3	%	11	%		121	4	%	13	%
Total Consolidated	$	3,415	100	%	$	3,598	100	%	-5	%	$	3,373	100	%	1	%
Net premiums earned
Property, casualty, and all other	$	2,370	73	%	$	2,433	71	%	-3	%	$	2,303	72	%	3	%
Personal accident (A&H)(1)		766	23	%		875	25	%	-12	%		772	24	%	-1	%
Life(2)		130	4	%		120	4	%	8	%		118	4	%	10	%
Total Consolidated	$	3,266	100	%	$	3,428	100	%	-5	%	$	3,193	100	%	2	%
Income excluding net realized gains (losses)
Property, casualty, and all other	$	580	82	%	$	561	76	%	3	%	$	539	77	%	8	%
Personal accident (A&H)(1)		87	12	%		138	19	%	-37	%		121	17	%	-28	%
Life(2)		39	6	%		39	5	%	-	%		39	6	%	-	%
Total Consolidated	$	706	100	%	$	738	100	%	-4	%	$	699	100	%	1	%

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

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

(3) Prior year on a constant dollar basis.

Line of Business 2 Page 5

ACE Limited Consolidating Statement of Operations Three months ended June 30, 2009 and 2008 (in millions of U.S. dollars) (Unaudited)

	Insurance - North American			Insurance - Overseas General			Global Reinsurance			Corporate & Other			Consolidated Excluding Life Segment			Life			ACE Consolidated
June 30, 2009
Gross premiums written	$	2,664		$	1,710		$	359		$	—		$	4,733		$	384		$	5,117
Net premiums written		1,454			1,265			329			—			3,048			367			3,415
Net premiums earned		1,415			1,246			241			—			2,902			364			3,266
Losses and loss expenses		997			635			56			—			1,688			133			1,821
Policy benefits		—			1			—			—			1			77			78
Policy acquisition costs		129			293			46			—			468			55			523
Administrative expenses		147			190			14			39			390			64			454
Underwriting income (loss)		142			127			125			(39	)		355			35			390
Net investment income		275			114			73			1			463			43			506
Net realized gains (losses)		(97	)		(87	)		(47	)		(102	)		(333	)		108			(225	)
Interest expense		—			—			—			56			56			—			56
Other income (expense)		(1	)		(5	)		(1	)		27			20			1			21
Income tax expense (benefit)		76			29			13			(31	)		87			14			101
Net income (loss)		243			120			137			(138	)		362			173			535
Net realized gains (losses)		(97	)		(87	)		(47	)		(102	)		(333	)		108			(225	)
Net realized gains (losses) in other income (expense)		—			2			—			5			7			1			8
Tax expense (benefit) on net realized gains (losses)		(33	)		(15	)		1			(1	)		(48	)		2			(46	)
Income (loss) excluding net realized gains (losses)(1)	$	307		$	190		$	185		$	(42	)	$	640		$	66		$	706
June 30, 2008
Gross premiums written	$	2,718		$	1,876		$	272		$	—		$	4,866		$	427		$	5,293
Net premiums written		1,511			1,443			270			—			3,224			374			3,598
Net premiums earned		1,365			1,439			257			—			3,061			367			3,428
Losses and loss expenses		962			715			108			—			1,785			110			1,895
Policy benefits		—			5			—			—			5			84			89
Policy acquisition costs		129			323			54			—			506			63			569
Administrative expenses		131			208			14			39			392			69			461
Underwriting income (loss)		143			188			81			(39	)		373			41			414
Net investment income		282			134			79			(3	)		492			40			532
Net realized gains (losses)		(105	)		(58	)		(20	)		(7	)		(190	)		64			(126	)
Interest expense		—			—			—			62			62			—			62
Other income (expense)		(3	)		17			(1	)		116			129			(4	)		125
Income tax expense (benefit)		106			38			11			(30	)		125			12			137
Net income		211			243			128			35			617			129			746
Net realized gains (losses)		(105	)		(58	)		(20	)		(7	)		(190	)		64			(126	)
Net realized gains (losses) in other income (expense)		—			15			—			105			120			—			120
Tax expense (benefit) on net realized gains (losses)		(7	)		(7	)		—			—			(14	)		—			(14	)
Income (loss) excluding net realized gains (losses)(1)	$	309		$	279		$	148		$	(63	)	$	673		$	65		$	738
Income (loss) excluding net realized gains (losses), constant $(2)	$	307		$	244		$	146		$	(63	)	$	634		$	65		$	699
(1)    See page 30 Non-GAAP Financial Measures.
(2)    Prior year on a constant dollar basis.

Segment 2009 Qtr Page 6

ACE Limited Consolidating Statement of Operations Six months ended June 30, 2009 and 2008 (in millions of U.S. dollars) (Unaudited)

	Insurance - North American			Insurance - Overseas General			Global Reinsurance				Corporate & Other			Consolidated Excluding Life Segment			Life			ACE Consolidated
June 30, 2009
Gross premiums written	$	4,742		$	3,403		$	738			$	—		$	8,883		$	769		$	9,652
Net premiums written		2,846			2,592			688				—			6,126			713			6,839
Net premiums earned		2,852			2,430			479				—			5,761			699			6,460
Losses and loss expenses		2,001			1,248			143		��		—			3,392			245			3,637
Policy benefits		—			3			—				—			3			174			177
Policy acquisition costs		252			553			97				—			902			102			1,004
Administrative expenses		287			365			26				74			752			122			874
Underwriting income (loss)		312			261			213				(74	)		712			56			768
Net investment income		538			234			145				2			919			89			1,008
Net realized gains (losses)		(217	)		(80	)		(36	)			(130	)		(463	)		117			(346	)
Interest expense		—			—			—				109			109			—			109
Other income (expense)		(5	)		(9	)		(1	)			23			8			(1	)		7
Income tax expense (benefit)		172			75			29				(70	)		206			20			226
Net income (loss)		456			331			292				(218	)		861			241			1,102
Net realized gains (losses)		(217	)		(80	)		(36	)			(130	)		(463	)		117			(346	)
Net realized gains (losses) in other income (expense)		—			5			—				2			7			4			11
Tax expense (benefit) on net realized gains (losses)		(45	)		(7	)		1				(10	)		(61	)		(1	)		(62	)
Income (loss) excluding net realized gains (losses)(1)	$	628		$	399		$	329			$	(100	)	$	1,256		$	119		$	1,375
June 30, 2008
Gross premiums written	$	4,899		$	3,654		$	617			$	—		$	9,170		$	532		$	9,702
Net premiums written		2,871			2,788			614				—			6,273			479			6,752
Net premiums earned		2,719			2,662			520				—			5,901			467			6,368
Losses and loss expenses		1,831			1,308			225				—			3,364			110			3,474
Policy benefits		—			5			—				—			5			147			152
Policy acquisition costs		290			568			108				—			966			71			1,037
Administrative expenses		266			381			29				78			754			82			836
Underwriting income (loss)		332			400			158				(78	)		812			57			869
Net investment income		551			251			152				12			966			55			1,021
Net realized gains (losses)		(166	)		(141	)		(65	)			15			(357	)		(122	)		(479	)
Interest expense		—			—			—				108			108			—			108
Other income (expense)		(3	)		20			(1	)			98			114			(4	)		110
Income tax expense (benefit)		229			85			15				(49	)		280			10			290
Net income (loss)		485			445			229				(12	)		1,147			(24	)		1,123
Net realized gains (losses)		(166	)		(141	)		(65	)			15			(357	)		(122	)		(479	)
Net realized gains (losses) in other income (expense)		—			22			—				70			92			—			92
Tax expense (benefit) on net realized gains (losses)		(15	)		(29	)		(2	)			(1	)		(47	)		—			(47	)
Income (loss) excluding net realized gains (losses)(1)	$	636		$	535		$	292			$	(98	)	$	1,365		$	98		$	1,463
Income (loss) excluding net realized gains (losses), constant $ (2)	$	631		$	481		$	283			$	(98	)	$	1,297		$	98		$	1,395
(1)    See page 30 Non-GAAP Financial Measures.
(2)    Prior year on a constant dollar basis.

Segment 2009 YTD Page 7

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

Insurance - North American

	2Q-09			1Q-09			4Q-08			3Q-08			2Q-08			YTD 2009			YTD 2008			Full Year 2008
Gross premiums written	$	2,664		$	2,078		$	2,167		$	2,987		$	2,718		$	4,742		$	4,899		$	10,053
Net premiums written		1,454			1,392			1,304			1,461			1,511			2,846			2,871			5,636
Net premiums earned		1,415			1,437			1,377			1,583			1,365			2,852			2,719			5,679
Losses and loss expenses		997			1,004			893			1,356			962			2,001			1,831			4,080
Policy acquisition costs		129			123			112			160			129			252			290			562
Administrative expenses		147			140			138			132			131			287			266			536
Underwriting income (loss)		142			170			234			(65	)		143			312			332			501
Net investment income		275			263			266			278			282			538			551			1,095
Net realized gains (losses)		(97	)		(120	)		(259	)		(284	)		(105	)		(217	)		(166	)		(709	)
Interest expense		—			—			1			—			—			—			—			1
Other income (expense)		(1	)		(4	)		(1	)		(3	)		(3	)		(5	)		(3	)		(7	)
Income tax expense (benefit)		76			96			93			(7	)		106			172			229			315
Net income (loss)		243			213			146			(67	)		211			456			485			564
Net realized gains (losses)		(97	)		(120	)		(259	)		(284	)		(105	)		(217	)		(166	)		(709	)
Tax expense (benefit) on net realized gains (losses)		(33	)		(12	)		(72	)		(64	)		(7	)		(45	)		(15	)		(151	)
Income excluding net realized gains (losses)(1)	$	307		$	321		$	333		$	153		$	309		$	628		$	636		$	1,122
Combined ratio
Loss and loss expense ratio		70.5	%		69.9	%		64.9	%		85.6	%		70.5	%		70.2	%		67.3	%		71.8	%
Policy acquisition cost ratio		9.1	%		8.6	%		8.1	%		10.1	%		9.5	%		8.8	%		10.7	%		9.9	%
Administrative expense ratio		10.4	%		9.7	%		10.0	%		8.4	%		9.5	%		10.1	%		9.8	%		9.4	%
Combined ratio		90.0	%		88.2	%		83.0	%		104.1	%		89.5	%		89.1	%		87.8	%		91.1	%
Large losses and other items (before tax)
Reinstatement premiums (expensed) collected	$	—		$	—		$	—		$	(16	)	$	—		$	—		$	—		$	(16	)
Catastrophe losses	$	20		$	4		$	3		$	258		$	22		$	24		$	37		$	298
Prior period development - unfavorable (favorable)(2)	$	(74	)	$	(10	)	$	(102	)	$	(103	)	$	(23	)	$	(84	)	$	(102	)	$	(307	)
Loss and loss expense ratio excluding catastophe losses and prior period development		74.3	%		70.3	%		72.0	%		75.1	%		70.6	%		72.3	%		71.4	%		72.6	%
% Change versus prior year period
Net premiums written		-4	%		2	%		-5	%		1	%		1	%		-1	%		-5	%		-3	%
Net premiums earned		4	%		6	%		-3	%		-1	%		-6	%		5	%		-9	%		-5	%
Other ratios
Net premiums written/gross premiums written		55	%		67	%		60	%		49	%		56	%		60	%		59	%		56	%

(1) See page 30 Non-GAAP Financial Measures.

(2) For YTD 2008, prior period favorable development of $146 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

	2Q-09			1Q-09			4Q-08			3Q-08			2Q-08			YTD 2009			YTD 2008			Full Year 2008
Gross premiums written	$	1,710		$	1,693		$	1,609		$	1,678		$	1,876		$	3,403		$	3,654		$	6,941
Net premiums written		1,265			1,327			1,251			1,293			1,443			2,592			2,788			5,332
Net premiums earned		1,246			1,184			1,250			1,425			1,439			2,430			2,662			5,337
Losses and loss expenses		635			613			640			731			715			1,248			1,308			2,679
Policy benefits		1			2			2			5			5			3			5			12
Policy acquisition costs		293			260			296			329			323			553			568			1,193
Administrative expenses		190			175			195			217			208			365			381			793
Underwriting income		127			134			117			143			188			261			400			660
Net investment income		114			120			134			136			134			234			251			521
Net realized gains (losses)		(87	)		7			(117	)		(58	)		(58	)		(80	)		(141	)		(316	)
Other income (expense)		(5	)		(4	)		(3	)		(6	)		17			(9	)		20			11
Income tax expense (benefit)		29			46			5			10			38			75			85			100
Net income		120			211			126			205			243			331			445			776
Net realized gains (losses)		(87	)		7			(117	)		(58	)		(58	)		(80	)		(141	)		(316	)
Net realized gains (losses) in other income (expense)		2			3			1			(5	)		15			5			22			18
Tax expense (benefit) on net realized gains (losses)		(15	)		8			(17	)		(16	)		(7	)		(7	)		(29	)		(62	)
Income excluding net realized gains (losses)(1)	$	190		$	209		$	225		$	252		$	279		$	399		$	535		$	1,012
Combined ratio
Loss and loss expense ratio		51.0	%		52.0	%		51.5	%		51.6	%		50.0	%		51.5	%		49.3	%		50.4	%
Policy acquisition cost ratio		23.6	%		21.9	%		23.7	%		23.1	%		22.4	%		22.8	%		21.3	%		22.4	%
Administrative expense ratio		15.2	%		14.8	%		15.5	%		15.2	%		14.5	%		15.0	%		14.3	%		14.8	%
Combined ratio		89.8	%		88.7	%		90.7	%		89.9	%		86.9	%		89.3	%		84.9	%		87.6	%
Large losses and other items (before tax)
Reinstatement premiums (expensed) collected	$	—		$	—		$	(4	)	$	(3	)	$	—		$	—		$	—		$	(7	)
Catastrophe losses	$	10		$	15		$	(6	)	$	49		$	25		$	25		$	40		$	83
Prior period development - unfavorable (favorable)	$	(26	)	$	(24	)	$	(85	)	$	(121	)	$	(54	)	$	(50	)	$	(98	)	$	(304	)
Loss and loss expense ratio excluding catastophe losses and prior period development		52.3	%		52.7	%		58.6	%		56.7	%		52.0	%		52.5	%		51.5	%		54.5	%
% Change versus prior year period
Net premiums written as reported		-12	%		-1	%		7	%		24	%		24	%		-7	%		18	%		17	%
Net premiums earned as reported		-13	%		-3	%		2	%		25	%		26	%		-9	%		18	%		15	%
Net premiums written constant $		2	%		10	%		18	%		18	%		15	%		6	%		11	%		14	%
Net premiums earned constant $		1	%		10	%		12	%		19	%		17	%		5	%		10	%		13	%
Underwriting income constant $													$	162					$	359
Income excluding net realized gains (losses), constant $													$	244					$	481
Other ratios
Net premiums written/gross premiums written		74	%		78	%		78	%		77	%		77	%		76	%		76	%		77	%

(1) See page 30 Non-GAAP Financial Measures.

Insurance - Overseas General Page 9

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

Global Reinsurance

	2Q-09			1Q-09			4Q-08			3Q-08			2Q-08			YTD 2009			YTD 2008			Full Year 2008
Gross premiums written	$	359		$	379		$	130		$	174		$	272		$	738		$	617		$	921
Net premiums written		329			359			126			174			270			688			614			914
Net premiums earned		241			238			240			257			257			479			520			1,017
Losses and loss expenses		56			87			121			178			108			143			225			524
Policy acquisition costs		46			51			40			44			54			97			108			192
Administrative expenses		14			12			13			14			14			26			29			56
Underwriting income		125			88			66			21			81			213			158			245
Net investment income		73			72			74			83			79			145			152			309
Net realized gains (losses)		(47	)		11			(96	)		(2	)		(20	)		(36	)		(65	)		(163	)
Other income (expense)		(1	)		—			—			(1	)		(1	)		(1	)		(1	)		(2	)
Income tax expense (benefit)		13			16			6			9			11			29			15			30
Net income		137			155			38			92			128			292			229			359
Net realized gains (losses)		(47	)		11			(96	)		(2	)		(20	)		(36	)		(65	)		(163	)
Tax expense (benefit) on net realized gains (losses)		1			—			(1	)		(1	)		—			1			(2	)		(4	)
Income excluding net realized gains (losses) (1)	$	185		$	144		$	133		$	93		$	148		$	329		$	292		$	518
Combined ratio
Loss and loss expense ratio		23.4	%		36.3	%		50.3	%		69.2	%		42.1	%		29.8	%		43.3	%		51.5	%
Policy acquisition cost ratio		19.0	%		21.5	%		16.6	%		16.9	%		21.0	%		20.2	%		20.8	%		18.8	%
Administrative expense ratio		5.8	%		5.2	%		5.4	%		5.4	%		5.5	%		5.5	%		5.6	%		5.5	%
Combined ratio		48.2	%		63.0	%		72.3	%		91.5	%		68.6	%		55.5	%		69.7	%		75.8	%
Large losses and other items (before tax)
Reinstatement premiums (expensed) collected	$	—		$	1		$	8		$	12		$	—		$	1		$	—		$	20
Catastrophe losses	$	1		$	19		$	70		$	104		$	11		$	20		$	12		$	186
Prior period development - unfavorable (favorable)	$	(58	)	$	(34	)	$	(65	)	$	(53	)	$	(27	)	$	(92	)	$	(41	)	$	(159	)
Loss and loss expense ratio excluding catastophe losses and prior period development		46.9	%		42.8	%		50.4	%		51.7	%		48.2	%		44.9	%		48.9	%		49.9	%
% Change versus prior year period
Net premiums written		22	%		4	%		-28	%		-19	%		-19	%		12	%		-24	%		-24	%
Net premiums earned		-6	%		-10	%		-23	%		-19	%		-21	%		-8	%		-22	%		-22	%
Other ratios
Net premiums written/gross premiums written		92	%		95	%		97	%		100	%		99	%		93	%		100	%		99	%

(1) See page 30 Non-GAAP Financial Measures.

Global Reinsurance Page 10

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

Life

	2Q-09			1Q-09			4Q-08			3Q-08			2Q-08			YTD 2009			YTD 2008			Full Year 2008
Gross premiums written (1)	$	384		$	385		$	414		$	381		$	427		$	769		$	532		$	1,327
Net premiums written		367			346			371			348			374			713			479			1,198
Net premiums earned		364			335			359			344			367			699			467			1,170
Losses and loss expenses		133			112			106			104			110			245			110			320
Policy benefits		77			97			154			86			84			174			147			387
Policy acquisition costs		55			47			69			48			63			102			71			188
Administrative expenses		64			58			56			61			69			122			82			199
Net investment income		43			46			47			40			40			89			55			142
Life underwriting income(2)		78			67			21			85			81			145			112			218
Net realized gains (losses)		108			9			(230	)		(180	)		64			117			(122	)		(532	)
Other income (expense)		1			(2	)		(6	)		(2	)		(4	)		(1	)		(4	)		(12	)
Income tax expense (benefit)		14			6			5			15			12			20			10			30
Net income (loss)		173			68			(220	)		(112	)		129			241			(24	)		(356	)
Net realized gains (losses)		108			9			(230	)		(180	)		64			117			(122	)		(532	)
Net realized gains (losses) in other income (expense)		1			3			—			2			—			4			—			2
Tax expense (benefit) on net realized gains (losses)		2			(3	)		(6	)		—			—			(1	)		—			(6	)
Income excluding net realized gains (losses)(3)	$	66		$	53		$	4		$	66		$	65		$	119		$	98		$	168
Prior period development - unfavorable (favorable)	$	—		$	1		$	—		$	—		$	—		$	1		$	—		$	—
% Change versus prior year period
Net premiums written		-2	%		230	%(4)		234	%(4)		266	%(4)		330	%(4)		49	%		174	%(4)		214	%(4)
Net premiums earned		-1	%		235	%(4)		266	%(4)		262	%(4)		322	%(4)		50	%		167	%(4)		218	%(4)

(1) Consistent with GAAP, premiums collected on universal life and investment contracts are considered deposits and excluded from revenues. For the quarters ended June 30, 2009, March 31, 2009, December 31, 2008, September 30, 2008, and June 30, 2008, premiums or deposits collected on investment and universal life contracts that are excluded from premium revenue above are $100.1 million, $95.5 million, $29.2 million, $18.8 million, and $30.9 million, respectively. Fees on universal life and investment contracts are revenue for GAAP and have been classified as premium. For the quarters ended June 30, 2009, March 31, 2009, December 31, 2008, September 30, 2008, and June 30, 2008, fees reflected as gross written premiums are $7.7 million, $7.1 million, $5.6 million, $4.5 million, and $4.9 million, respectively.

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

(3) See page 30 Non-GAAP Financial Measures.

(4) % Change is primarily due to the Combined Insurance acquisition on April 1, 2008.

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)

	2Q-09			1Q-09			4Q-08			3Q-08		2Q-08		YTD 2009			YTD 2008		Full Year 2008
Premium	$	26		$	25		$	27		$	31	$	32	$	51		$	64	$	122
Less paid claims		43			45			35			16		9		88			16		67
Net	$	(17	)	$	(20	)	$	(8	)	$	15	$	23	$	(37	)	$	48	$	55
Living Benefits (Includes GMIB and GMAB)
	2Q-09			1Q-09			4Q-08			3Q-08		2Q-08		YTD 2009			YTD 2008		Full Year 2008
Premium	$	39		$	40		$	40		$	39	$	37	$	79		$	70	$	149
Less paid claims		1			1			1			—		—		2			—		—
Net	$	38		$	39		$	39		$	39	$	37	$	77		$	70	$	149
Total VA Guaranteed Benefits
	2Q-09			1Q-09			4Q-08			3Q-08		2Q-08		YTD 2009			YTD 2008		Full Year 2008
Premium	$	65		$	65		$	67		$	70	$	69	$	130		$	134	$	271
Less paid claims		44			46			36			16		9		90			16		67
Net	$	21		$	19		$	31		$	54	$	60	$	40		$	118	$	204

Amounts represent accrued 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 $166 million of claims and $93 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 assumptions we expect approximately $3 million of claims and $150 million of premium on living benefits over the next 12 months.

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, 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
Losses and loss expenses incurred		2,454			638			1,816			2,433			629			1,804			21			9			12
Losses and loss expenses paid		(2,504	)		(762	)		(1,742	)		(2,246	)		(667	)		(1,579	)		(258	)		(95	)		(163	)(3)
Other (incl. foreign exch. revaluation)		(195	)		(57	)		(138	)		(195	)		(57	)		(138	)		—			—			—
Balance at March 31, 2009	$	36,931		$	12,754		$	24,177		$	32,037		$	9,671		$	22,366		$	4,894		$	3,083		$	1,811
Losses and loss expenses incurred		2,633			812			1,821			2,622			804			1,818			11			8			3
Losses and loss expenses paid		(2,868	)		(1,154	)		(1,714	)		(2,723	)		(958	)		(1,765	)		(145	)		(196	)		51
Other (incl. foreign exch. revaluation)		572			144			428			572			144			428			—			—			—
Balance at June 30, 2009	$	37,268		$	12,556		$	24,712		$	32,508		$	9,661		$	22,847		$	4,760		$	2,895		$	1,865
Add net recoverable on paid losses					874
Reinsurance Recoverable				$	13,430

(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.

(3) The net paid of $163 million for the quarter does not reflect the NICO billing of $125 million which was processed in the second quarter.

Loss Reserve Rollforward Page 13

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

Net Reinsurance Recoverable by Division

	June 30 2009			March 31 2009			December 31 2008
Reinsurance recoverable on paid losses and loss expenses
Active operations	$	655		$	725		$	745
Brandywine		297			313			331
Westchester Run-off		33			38			34
Other Run-off		12			13			12
Total	$	997		$	1,089		$	1,122
Reinsurance recoverable on unpaid losses and loss expenses
Active operations	$	9,996		$	10,006		$	10,124
Brandywine		2,394			2,566			2,608
Westchester Run-off		533			539			550
Other Run-off		86			100			104
Total	$	13,009		$	13,211		$	13,386
Gross reinsurance recoverable
Active operations	$	10,651		$	10,731		$	10,869
Brandywine		2,691			2,879			2,939
Westchester Run-off		566			577			584
Other Run-off		98			113			116
Total	$	14,006		$	14,300		$	14,508
Provision for uncollectible reinsurance
Active operations	$	(387	)	$	(379	)	$	(398	)
Brandywine		(151	)		(168	)		(155	)
Westchester Run-off		(27	)		(27	)		(27	)
Other Run-off		(11	)		(13	)		(11	)
Total	$	(576	)	$	(587	)	$	(591	)
Net reinsurance recoverable
Active operations	$	10,264		$	10,352		$	10,471
Brandywine		2,540			2,711			2,784
Westchester Run-off		539			550			557
Other Run-off		87			100			105
Total	$	13,430		$	13,713		$	13,917

Reinsurance Recoverable Page 14

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

Consolidated Reinsurance Recoverable

	March 31, 2009
	Recoverable		Provision (2)		% Of Gross
Categories
Largest Reinsurers (1)	$	8,955	$	157	1.8	%
Other reinsurers balances rated A- or better		2,002		29	1.4	%
Other reinsurers balances with rating lower than A- or not rated		603		133	22.1	%
Other Pools and Government Agencies		136		10	7.4	%
Structured Settlements		561		21	3.7	%
Other Captives		1,543		8	0.5	%
Others(3)		500		229	45.8	%
Total	$	14,300	$	587	4.1	%

At March 31, 2009, $10.6 billion of ACE Limited recoverables were from rated reinsurers, of which 94.1% were rated the equivalent of A- or better by internationally recognized rating agencies.

Largest Reinsurers(4)	S&P Rating (5)	AM Best Rating (5)
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	A+	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	A+	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 March 31, 2009 was $14.718 billion.

(2) See MD&A reported in the 2008 Form 10-K for a discussion on how ACE determines the provision for uncollectible reinsurance.

(3) 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.

(4) The reinsurers listed are the largest reinsurers where gross recoverable (net of collateral) exceeds 1% of ACE Shareholders’ equity. These reinsurer balances account for 57.5% of gross recoverables at March 31, 2009.

(5) S&P and AM Best ratings as of March 31, 2009, are based on each group’s predominant reinsurer.

(6) Gross recoverables with American International Group (AIG) were $546.1 million at March 31, 2009, of which $441.6 million were with Transatlantic Reinsurance Co. In June 2009, AIG sold its majority share interest in Transatlantic Reinsurance Co.

(7) Gross recoverables with XL Capital Group were $338.0 million at March 31, 2009.

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, 2008	$	775		$	347		$	1,122
Provision at 12/31/08		29			111			140
% of gross		3.7	%		32.0	%		12.5	%
Net balance at December 31, 2008	$	746		$	236		$	982
Gross balance at March 31, 2009	$	756		$	333		$	1,089
Provision at 3/31/09		30			100			130
% of gross		4.0	%		30.0	%		11.9	%
Net balance at March 31, 2009	$	726		$	233		$	959
Gross balance at June 30, 2009	$	704		$	293		$	997
Provision at 6/30/09		28			95			123
% of gross		4.0	%		32.4	%		12.3	%
Net balance at June 30, 2009 (3)	$	676		$	198		$	874

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

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

	June 30 2009					March 31 2009					December 31 2008
Market Value
Fixed maturities available for sale	$	35,697				$	31,355				$	31,155
Fixed maturities held to maturity		3,535					2,827					2,865
Short-term investments		2,081					3,909					3,350
Total	$	41,313				$	38,091				$	37,370
Asset Allocation by Market Value
Treasury	$	1,652		4	%	$	1,224		3	%	$	1,018		3	%
Agency		2,420		6	%		2,157		6	%		2,027		5	%
Corporate		11,522		28	%		8,974		24	%		8,744		23	%
Mortgage-backed securities		11,100		27	%		10,796		28	%		10,986		29	%
Asset-backed securities		534		1	%		611		2	%		709		2	%
Municipal		2,225		5	%		2,101		5	%		2,124		6	%
Non-U.S.		9,779		24	%		8,319		22	%		8,412		23	%
Short-term investments		2,081		5	%		3,909		10	%		3,350		9	%
Total	$	41,313		100	%	$	38,091		100	%	$	37,370		100	%
Note: Insured municipal bonds represent $885 million, or 40% of our municipal bond holdings.
Credit Quality by Market Value
AAA	$	22,611		55	%	$	22,875		60	%	$	22,960		61	%
AA		3,870		9	%		3,605		10	%		3,374		9	%
A		6,328		15	%		5,497		14	%		5,497		15	%
BBB		4,383		11	%		3,560		9	%		3,388		9	%
BB		2,334		6	%		1,384		4	%		1,119		3	%
B		1,601		4	%		1,040		3	%		934		3	%
Other		186		0	%		130		0	%		98		0	%
Total	$	41,313		100	%	$	38,091		100	%	$	37,370		100	%
Cost/Amortized Cost
Fixed maturities available for sale	$	36,810				$	33,503				$	33,109
Fixed maturities held to maturity		3,517					2,824					2,860
Short-term investments		2,081					3,909					3,350
Subtotal		42,408					40,236					39,319
Equity securities		546					1,026					1,132
Other investments		1,320					1,325					1,368
Total	$	44,274				$	42,587				$	41,819
Avg. duration of fixed maturities		3.8 years					3.6 years					3.6 years
Avg. market yield of fixed maturities(1)		5.6	%				6.3	%				6.4	%
Avg. credit quality		AA					AA					AA
Avg. yield on invested assets (2)		4.7	%				4.8	%				5.0	%

(1) Weighted average yield to maturity of our fixed income portfolio based on the market prices of the holdings as of that date.

(2) Net investment income divided by average cost of fixed maturities and other investments, and average market value of equity securities.

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 June 30, 2009

	S&P Credit Rating
	AAA		AA		A		BBB		BB and below		Total
Mortgage-backed securities
Residential mortgage-backed (RMBS)
GNMA	$	544	$	—	$	—	$	—	$	—	$	544
FNMA		4,863		—		—		—		—		4,863
Freddie Mac		2,002		—		—		—		—		2,002
Total agency RMBS		7,409		—		—		—		—		7,409
Non-agency RMBS		1,066		82		98		65		230		1,541
Total residential mortgage-backed		8,475		82		98		65		230		8,950
Commercial mortgage-backed		2,138		1		8		3		—		2,150
Total mortgage-backed securities	$	10,613	$	83	$	106	$	68	$	230	$	11,100
Asset-backed securities
Sub-prime	$	43	$	4	$	6	$	—	$	2	$	55
Credit cards		37		5		6		9		—		57
Autos		221		23		18		4		1		267
Other		150		1		2		2		—		155
Total asset-backed securities	$	451	$	33	$	32	$	15	$	3	$	534

Insured asset-backed securities represent $72 million, or 13% 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 June 30, 2009

Mortgage-backed securities total $11.1 billion, are rated predominantly AAA and comprise 27% 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 and suspended new investments in CMBS in Q1 2009.

Securities issued by Federal agencies with implied or explicit government guarantees total $7.4 billion and represent 83% of the residential mortgage-backed portfolio.

Non-agency residential mortgage-backed securities are rated investment grade, backed by prime collateral, and broadly diversified in over 280,000 loans. The portfolio’s loan-to-value ratio is approximately 69% with an average FICO score of 733. With this conservative loan-to-value ratio and subordinated collateral of 12%, the cumulative 5-year foreclosure rate would have to rise to 18% and real estate values would have to fall 31% from their current levels before principal is impaired. The comparable historical cumulative foreclosure rate is 6% for prime mortgages.

Within the portfolio of prime non-agency RMBS are $146 million of holdings classified as ALT-A. These ALT-A holdings are broadly diversified with over 70% issued prior to 2006. The average FICO score is 715 with a relatively conservative loan-to-value ratio of 69%. With subordinated collateral of 19%, the cumulative 5-year foreclosure rate would have to rise to 29% and real estate values would have to fall more than 31% from their current levels before principal is impaired. The comparable historical cumulative foreclosure rate is approximately 10%.

Commercial mortgage-backed securities of $2.2 billion are rated predominantly AAA, broadly diversified with over 25,500 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 62% and commercial real estate values would have to fall more than 64% from their current levels before principal is impaired. The historical annual delinquency rate is 2%.

Sub-prime asset-backed securities (current holdings of $55 million) are rated predominantly investment grade, broadly diversified in over 100,000 loans with an average loan-to-value ratio of approximately 81% and an average FICO score of 604. With subordinated collateral of 30%, the cumulative 5-year foreclosure rate would have to rise to 45% and real estate values would have to fall more than 19% from their current levels before principal is impaired. The comparable historical cumulative 5-year foreclosure rate is 32%.

Auto loan asset-backed securities are rated predominantly AAA with a short duration of approximately 0.6 years and average subordinated collateral of 17%. Annual default rates would have to rise to 15 times their current level of about 2.4% 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

Amortized Cost at June 30, 2009

	S&P Credit Rating
	AAA		AA		A		BBB		BB and below		Total
Mortgage-backed securities
Residential mortgage-backed (RMBS)
GNMA	$	532	$	—	$	—	$	—	$	—	$	532
FNMA		4,744		—		—		—		—		4,744
Freddie Mac		1,939		—		—		—		—		1,939
Total agency RMBS		7,215		—		—		—		—		7,215
Non-agency RMBS		1,470		128		161		97		345		2,201
Total residential mortgage-backed		8,685		128		161		97		345		9,416
Commercial mortgage-backed		2,357		1		9		3		—		2,370
Total mortgage-backed securities	$	11,042	$	129	$	170	$	100	$	345	$	11,786
Asset-backed securities
Sub-prime	$	78	$	6	$	14	$	1	$	6	$	105
Credit cards		37		4		6		10		—		57
Autos		217		23		20		4		3		267
Other		150		1		4		5		—		160
Total asset-backed securities	$	482	$	34	$	44	$	20	$	9	$	589

Insured asset-backed securities represent $88 million, or 15% 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 June 30, 2009

	S&P Credit Rating
	AAA		AA		A		BBB		Total
U.S. Investment Grade Corporate Fixed Income Portfolio
Banks	$	510	$	339	$	1,583	$	170	$	2,602
Basic Materials		—		—		19		122		141
Communications		—		7		497		519		1,023
Consumer, Cyclical		1		80		102		156		339
Consumer, Non-Cyclical		86		220		363		247		916
Diversified Financial Services		60		56		102		165		383
Energy		—		13		176		512		701
Industrial		49		366		175		117		707
Utilities		—		1		260		439		700
All Others		69		71		316		187		643
Total	$	775	$	1,153	$	3,593	$	2,634	$	8,155

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. 64% 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 0.5% of total portfolio) and are monitored on a daily basis by ACE via an internal compliance system.

Investments 5 Page 21

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

Market Value at June 30, 2009

	S&P Credit Rating
	BB		B		CCC		Other		Total
Below Investment Grade Corporate Fixed Income Portfolio
Basic Materials	$	154	$	83	$	14	$	1	$	252
Communications		370		232		7		10		619
Consumer, Cyclical		160		194		10		13		377
Consumer, Non-Cyclical		271		379		11		10		671
Diversified Financial Services		51		23		35		7		116
Energy		426		118		3		1		548
Industrial		229		119		11		2		361
Utilities		239		76		—		6		321
All Others		46		43		4		9		102
Total	$	1,946	$	1,267	$	95	$	59	$	3,367

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 $65 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 June 30, 2009

	S&P Credit Rating
	AAA		AA		A		BBB		BB and below		Total
Non-U.S. Fixed Income Portfolio
United Kingdom	$	1,216	$	—	$	—	$	—	$	—	$	1,216
Germany		180		—		—		—		—		180
France		234		—		—		—		—		234
Canada		732		8		—		—		—		740
Japan		—		211		—		—		—		211
Other Foreign Government		520		501		345		226		22		1,614
Non-U.S. Corporate		1,299		670		1,777		1,331		507		5,584
	$	4,181	$	1,390	$	2,122	$	1,557	$	529	$	9,779

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. 89% 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 56% 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 23

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

Investment portfolio

Top 25 Exposures - Fixed Maturity Investments

June 30, 2009			Rating
General Electric Co	$	443	AA+
JP Morgan Chase & Co		363	A+
Bank of America Corp		348	A
Wells Fargo & Co		309	AA-
AT&T INC		256	A
Citigroup Inc		214	A
Verizon Communications Inc		211	A
Goldman Sachs Group Inc		199	A
Morgan Stanley		185	A
HSBC Holdings Plc		175	AA-
Comcast Corp		170	BBB+
ConocoPhillips		126	A
Lloyds TSB Group Plc		123	A
Telecom Italia SpA		119	BBB
Time Warner Cable Inc		110	BBB
XTO Energy Inc		106	BBB
Credit Suisse Group		97	A
Barclays PLC		97	A+
Deutsche Telekom AG		92	BBB+
American Express Co		87	BBB+
Roche Holding AG		86	AA-
Dominion Resources Inc/VA		83	A-
American International Group		82	A-
Telefonica SA		78	A-
Banco Santander SA		77	AA

Investments 8 Page 24

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

	Three months ended June 30, 2009									Six months ended June 30, 2009
	Net Realized Gains (Losses)(1)			Net Unrealized Gains (Losses)(2)			Net Impact			Net Realized Gains (Losses)(1)			Net Unrealized Gains (Losses)(2)			Net Impact
Fixed maturities	$	(71	)	$	1,348		$	1,277		$	(119	)	$	1,134		$	1,015
Equity securities		(81	)		49			(32	)		(181	)		21			(160	)
Equity and fixed income derivatives		(21	)		—			(21	)		34			—			34
Other		(116	)		101			(15	)		(141	)		62			(79	)
Sub-total		(289	)		1,498			1,209			(407	)		1,217			810
Mark-to-market gains (losses) from derivative transactions(3)		64			—			64			61			—			61
Total gains (losses)		(225	)		1,498			1,273			(346	)		1,217			871
Partially-owned insurance companies(4)		8			(20	)		(12	)		11			(6	)		5
Income tax expense (benefit)		(46	)		279			233			(62	)		201			139
Net gains (losses)	$	(171	)	$	1,199		$	1,028		$	(273	)	$	1,010		$	737

(1) Impairments for the quarter of $114M include $90M for fixed maturities, $1 for equities and $23M for other investments. Year to date impairments of $306M include $178M for fixed maturities, $26M for equities and $102M for other investments.

(2) Excludes $267 million of change in unrealized losses, net of tax of $82 million, related to the adoption of FSP 115-2 and FAS 124-2.

(3) Includes $103M of realized gains on the life reinsurance operations which is comprised of a $284M gain on guaranteed minimum income benefit derivatives offset by $181M of losses on other derivatives, including S&P put options and futures.

(4) 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 June 30, 2008									Six months ended June 30, 2008
	Net Realized Gains (Losses)(5)			Net Unrealized Gains (Losses)			Net Impact			Net Realized Gains (Losses)(5)			Net Unrealized Gains (Losses)			Net Impact
Fixed maturities	$	(198	)	$	(469	)	$	(667	)	$	(303	)	$	(653	)	$	(956	)
Equity securities		13			(75	)		(62	)		(41	)		(231	)		(272	)
Equity and fixed income derivatives		(16	)		—			(16	)		(25	)		—			(25	)
Other		15			(11	)		4			(5	)		(16	)		(21	)
Sub-total		(186	)		(555	)		(741	)		(374	)		(900	)		(1,274	)
Mark-to-market gains (losses) from derivative transactions(6)		60			—			60			(105	)		—			(105	)
Total gains (losses)		(126	)		(555	)		(681	)		(479	)		(900	)		(1,379	)
Partially-owned insurance companies(7)		120			(7	)		113			92			14			106
Income tax expense (benefit)		(14	)		(30	)		(44	)		(47	)		(52	)		(99	)
Net gains (losses)	$	8		$	(532	)	$	(524	)	$	(340	)	$	(834	)	$	(1,174	)

(5) Impairments for the quarter of $210M include $171M for fixed maturities, $39M for equities and $nil for other investments. Year to date impairments of $399M include $299M for fixed maturities, $75M for equities and $25M for other investments.

(6) Includes $65M of unrealized gains and $118M of unrealized losses primarily on the guaranteed minimum income benefit derivatives from our life reinsurance operations for the quarter and year to date, respectively.

(7) 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 25

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

	Three months ended June 30, 2009
	Net Realized Gains (Losses)			Credit Impairment (1)			All Other Activity (2)
Investment grade corp	$	(7	)	$	—		$	(7	)
High yield corp		(85	)		(34	)		(51	)
MBS / ABS		(16	)		(26	)		10
Convertible bonds		37			—			37
Fixed maturities		(71	)		(60	)		(11	)
Equity securities		(81	)		—			(81	)
Equity and fixed income derivatives		(21	)		—			(21	)
Other		(116	)		—			(116	)
Sub-total	$	(289	)	$	(60	)	$	(229	)

(1) Under new FSP guidelines.

(2) Includes realized gains (losses) on sales, derivatives and foreign exchange.

Investment Gains (Losses) OTTI Page 26

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

	June 30 2009			March 31 2009			December 31 2008			December 31 2007
Total short-term debt	$	216		$	466		$	471		$	372
Total long-term debt		3,322			2,802			2,806			1,811
Total debt	$	3,538		$	3,268		$	3,277		$	2,183
Total trust preferred securities	$	309		$	309		$	309		$	309
Perpetual preferred shares	$	—		$	—		$	—		$	557
Common shareholders’ equity		16,561			14,718			14,446			16,120
Total shareholders’ equity	$	16,561		$	14,718		$	14,446		$	16,677
Total capitalization	$	20,408		$	18,295		$	18,032		$	19,169
Tangible shareholders’ equity(1)	$	12,805		$	10,983		$	10,699		$	13,839
Leverage ratios
Debt/ total capitalization		17.3	%		17.9	%		18.2	%		11.4	%
Debt plus trust preferred securities/ total capitalization		18.9	%		19.6	%		19.9	%		13.0	%
Debt/ tangible equity		27.6	%		29.8	%		30.6	%		15.8	%
Debt plus trust preferred securities/ tangible equity		30.0	%		32.6	%		33.5	%		18.0	%
Debt plus total preferred stock/ total capitalization		18.9	%		19.6	%		19.9	%		15.9	%

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

Capital Structure Page 27

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

	Par Amount Outstanding		Carrying value		Coupon		Maturity Date
Debt and Trust Preferred
ACE INA Holdings Inc. Term Loan	$	16	$	16	3.02	%	September 18, 2009
ACE INA Holdings Inc Subordinated Notes	$	200	$	200	8.41	%	December 6, 2009
ACE European Holdings No2 Limited Term Loan	$	165	$	165	5.25	%	December 13, 2010
ACE INA Holdings Inc. Term Loan	$	50	$	50	5.61	%	December 19, 2011
ACE INA Holdings Inc. Term Loan	$	450	$	450	4.15	%	April 1, 2013
ACE INA Holdings Inc. Senior Notes	$	500	$	499	5.88	%	June 15, 2014
ACE INA Holdings Inc. Senior Notes	$	450	$	446	5.60	%	May 15, 2015
ACE INA Holdings Inc. Senior Notes	$	500	$	500	5.70	%	February 15, 2017
ACE INA Holdings Inc. Senior Notes	$	300	$	300	5.80	%	March 15, 2018
ACE INA Holdings Inc. Senior Notes	$	500	$	500	5.90	%	June 15, 2019
ACE INA Holdings Inc. Debentures	$	100	$	100	8.88	%	August 15, 2029
ACE Capital Trust II Capital Securities	$	300	$	309	9.70	%	April 1, 2030
ACE INA Holdings Inc. Senior Notes	$	300	$	298	6.70	%	May 15, 2036
Other	$	14	$	14
	$	3,845	$	3,847
	Commitment		LOC Usage				Maturity Date
Credit Facilities
Syndicated Letter of Credit Facility	$	1,000	$	875			November 8, 2012
Revolving Credit / LOC Facility	$	500	$	149			November 8, 2012
Funds at Lloyds Capital Facility	$	494	$	493			December 31, 2013
Bilateral Letter of Credit Facility	$	500	$	0			September 20, 2014
	$	2,494	$	1,517

Capital Structure 2 Page 28

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

	Three months ended June 30						Six months ended June 30
	2009			2008			2009			2008
Numerator
Income excluding net realized gains (losses)(1)	$	706		$	738		$	1,375		$	1,463
Perpetual preferred dividend		—			(13	)		—			(24	)
Income to common shares, excl. net realized gains (losses)		706			725			1,375			1,439
Net realized gains (losses), net of income tax		(171	)		8			(273	)		(340	)
Net income available to the holders of common shares	$	535		$	733		$	1,102		$	1,099
Rollforward of Common Shares Outstanding
Shares - beginning of period		335,890,644			332,506,547			333,645,471			329,704,531
Issued under employee stock purchase plan		145,779			110,227			259,395			203,455
Shares (cancelled) granted		(12,258	)		(22,100	)		2,092,935			1,152,580
Issued for option exercises		73,286			654,634			99,650			2,188,742
Shares - end of period		336,097,451			333,249,308			336,097,451			333,249,308
Denominator(2)
Weighted average shares outstanding		336,898,236			333,236,903			336,159,387			331,986,638
Effect of other dilutive securities		610,060			2,243,842			342,529			2,172,679
Adj. wtd. avg. shares outstanding and assumed conversions		337,508,296			335,480,745			336,501,916			334,159,317
Basic earnings per share
Income excluding net realized gains (losses)(1)	$	2.09		$	2.18		$	4.09		$	4.33
Net realized gains (losses), net of income tax		(0.51	)		0.02			(0.81	)		(1.02	)
Net income	$	1.58		$	2.20		$	3.28		$	3.31
Diluted earnings per share
Income excluding net realized gains (losses)(1)	$	2.09		$	2.16		$	4.08		$	4.31
Net realized gains (losses), net of income tax		(0.51	)		0.02			(0.81	)		(1.02	)
Net income	$	1.58		$	2.18		$	3.27		$	3.29

(1) See page 30 Non-GAAP Financial Measures.

(2) The current and prior year calculations have been amended due to the adoption of FSP EITF 03-6-1, Determining Whether Instruments Granted in Share-Based Payment Transactions Are Participating Securities (FSP EITF 03-6-1). FSP EITF 03-6-1 provides additional guidance in the calculation of earnings per share under FAS No. 128, Earnings Per Share, and requires unvested share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents (whether paid or unpaid) to be included in the computation of earnings per share pursuant to the two-class method.

Earnings per share Page 29

	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 31.

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

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.

	2Q-09			1Q-09			4Q-08			3Q-08			2Q-08			YTD 2009			YTD 2008			Full Year 2008
Net income, as reported	$	535		$	567		$	20		$	54		$	746		$	1,102		$	1,123		$	1,197
Net realized gains (losses)		(225	)		(121	)		(644	)		(510	)		(126	)		(346	)		(479	)		(1,633	)
Net realized gains (losses) in other income (expense)(1)		8			3			(48	)		(23	)		120			11			92			21
Income tax expense (benefit) on net realized gains (losses)		(46	)		(16	)		(88	)		(83	)		(14	)		(62	)		(47	)		(218	)
Income excluding net realized gains (losses)	$	706		$	669		$	624		$	504		$	738		$	1,375		$	1,463		$	2,591

(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 30

	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

	June 30 2009			March 31 2009			December 31 2008			June 30 2008
Shareholders’ equity	$	16,561		$	14,718		$	14,446		$	16,327
Perpetual Preferred shares		—			—			—			—
Numerator for book value per share calculation		16,561			14,718			14,446			16,327
Less: goodwill and other intangible assets		3,756			3,735			3,747			3,612
Numerator for tangible book value per share	$	12,805		$	10,983		$	10,699		$	12,715
Denominator		336,097,451			335,890,644			333,645,471			333,249,308
Book value per common share	$	49.27		$	43.82		$	43.30		$	48.99
Tangible book value per common share	$	38.10		$	32.70		$	32.07		$	38.15
Reconciliation of Book Value
Shareholders’ equity, beginning of quarter	$	14,718		$	14,446		$	15,356		$	16,735
Income excluding net realized gains (losses)		706			669			624			738
Net realized gains (losses), net of tax		(171	)		(102	)		(604	)		8
Net unrealized gains (losses), net of tax (1)		1,199			(189	)		(594	)		(532	)
Cumulative translation, net of tax		229			(38	)		(310	)		3
Dividend declared on common shares		(104	)		(88	)		(91	)		(96	)
Income tax valuation allowance on the adoption of FSP 115-2 and FAS 124-2		(46	)		—			—			—
Preferred shares redeemed		—			—			—			(575	)
Other (2)		30			20			65			46
	$	16,561		$	14,718		$	14,446		$	16,327

(1) Net unrealized gain (losses) for June 30, 2009 excludes $267 million of change in unrealized losses, net of tax of $82 million, related to the adoption of FSP 115-2 and FAS 124-2.

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

Reconciliation Book Value Page 31

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

Consolidated Statement of Comprehensive Income

	2Q-09			1Q-09			4Q-08			3Q-08			2Q-08			YTD 2009			YTD 2008			Full Year 2008
Net income	$	535		$	567		$	20		$	54		$	746		$	1,102		$	1,123		$	1,197
Net unrealized appreciation (depreciation) on investments
Unrealized appreciation (depreciation) on investments(1)		972			(446	)		(1,198	)		(1,522	)		(731	)		526			(1,228	)		(3,948	)
Reclassification adjustment for net realized gains (losses) included in net income		157			179			464			383			169			336			342			1,189
Change in cumulative translation adjustments		325			(58	)		(468	)		(155	)		6			267			33			(590	)
Change in minimum pension liability		(10	)		(4	)		17			5			1			(14	)		1			23
Income tax (expense) benefit related to other comprehensive income items(2)		(289	)		99			292			320			27			(190	)		35			647
Other comprehensive income (loss)		1,155			(230	)		(893	)		(969	)		(528	)		925			(817	)		(2,679	)
Comprehensive income (loss)	$	1,690		$	337		$	(873	)	$	(915	)	$	218		$	2,027		$	306		$	(1,482	)

(1) Unrealized appreciation on investments for the quarter and year-to-date at June 30, 2009, includes $349 million of losses related to the adoption of FSP 115-2 and FAS 124-2.

(2) Income tax expense for the quarter and year-to-date includes $82 million related to the adoption of FSP 115-2 and FAS 124-2.

Comprehensive Income Page 32

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.

G7:A group of seven industrialized nations including Canada, France, Germany, Italy, Japan, United Kingdom, and the United States.

Life underwriting income: Net premium earned and net investment income less 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 33