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

Exhibit 99.2

Investor Contact	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.
Helen M. Wilson
Phone: (441) 299-9283
Fax: (441) 292-8675 email: investorrelations@acegroup.com	Cautionary Statement Regarding Forward-Looking Statements:
	Any forward-looking statements made in this financial supplement reflect ACE'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, our 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.
	Our 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. We undertake 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
III.	Segment Results
	- Insurance - North American		5
	- Insurance - Overseas General		6
	- Global Reinsurance		7
	- Life		8
IV.	Balance Sheet Details
	- Loss Reserve Rollforward		9
	- Reinsurance Recoverable Analysis		10
	- Investment Portfolio		11 - 16
	- Net Realized and Unrealized Gains (Losses)		17
	- Capital Structure		18
	- Computation of Basic and Diluted Earnings Per Share		19
V.	Other Disclosures
	- Non-GAAP Financial Measures		20 - 21
	- Book Value and Book Value per Common Share		22
	- Glossary		23

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

							% Change									% Change					% Change
	Three months ended December 31						4Q-11 vs.			Year ended December 31						2011 vs.			Constant $		2011 vs.
	2011			2010			4Q-10			2011			2010			2010			2010(2)		2010(2)
Gross premiums written	$	4,864		$	4,565			7	%	$	20,831		$	19,511			7	%	$	19,855		5	%
Net premiums written	$	3,630		$	3,422			6	%	$	15,372		$	13,708			12	%	$	13,973		10	%
Net premiums earned	$	3,831		$	3,572			7	%	$	15,387		$	13,504			14	%	$	13,801		11	%
Net investment income	$	565		$	532			6	%	$	2,242		$	2,070			8	%
Net income	$	750		$	1,001			-25	%	$	1,585		$	3,108			-49	%
Income excluding net realized gains (losses) (1)	$	663		$	702			-6	%	$	2,376		$	2,657			-11	%
Comprehensive income	$	822		$	485			69	%	$	1,902		$	3,879			-51	%
Operating cash flow	$	472		$	771					$	3,470		$	3,546
P&C combined ratio
Loss and loss expense ratio		63.1	%		58.2	%					65.7	%		59.2	%
Underwriting and administrative expense ratio		29.8	%		32.1	%					28.9	%		31.0	%
Combined ratio		92.9	%		90.3	%					94.6	%		90.2	%
Annualized return on equity (ROE) calculated using income excluding net realized gains (losses) (1)		11.8	%		13.2	%					10.7	%		13.1	%
Annualized ROE calculated using net income		12.4	%		17.5	%					6.7	%		14.6	%
Effective tax rate on income excluding net realized gains (losses) (1)		14.3	%		13.5	%					17.0	%		16.1	%
Effective tax rate		14.0	%		11.8	%					24.2	%		15.2	%
Diluted earnings per share
Income excluding net realized gains (losses) (1)	$	1.94		$	2.05			-5	%	$	6.97		$	7.79			-11	%
Net income	$	2.20		$	2.92			-25	%	$	4.65		$	9.11			-49	%
Book value per common share (1)										$	72.76		$	68.59			6	%
Tangible book value per common share (1)										$	58.43		$	54.66			7	%
Weighted average basic common shares outstanding		338.3			340.2						338.2			339.7
Weighted average diluted common shares outstanding		341.0			342.6						340.8			341.2
Debt/total capitalization		15.7	%		16.7	%

(1) See Non-GAAP Financial Measures.

(2) Prior periods on a constant dollar basis.

Page 1

ACE Limited Consolidated Results—Consecutive Quarters (in millions of U.S. dollars, except ratios) (Unaudited)

ACE Limited Consolidated

	4Q-11			3Q-11			2Q-11			1Q-11			4Q-10			Full Year 2011			Full Year 2010
Consolidated Results Excluding Life Segment
Gross premiums written	$	4,382		$	5,431		$	4,949		$	4,228		$	4,152		$	18,990		$	17,932
Net premiums written		3,166			3,889			3,494			3,037			3,015			13,586			12,152
Net premiums earned		3,394			4,042			3,305			2,910			3,184			13,651			11,962
Losses and loss expenses		2,142			2,615			2,079			2,135			1,854			8,971			7,083
Policy benefits		—			—			—			—			—			—			4
Policy acquisition costs		564			596			538			494			575			2,192			2,080
Administrative expenses		448			440			443			426			445			1,757			1,630
Underwriting income (loss) excluding Life segment(1)		240			391			245			(145	)		310			731			1,165
Life underwriting income excluding investment income and gains (losses) from separate account assets(2)		38			88			59			51			59			236			208
Net investment income		565			564			569			544			532			2,242			2,070
Net realized gains (losses)		83			(760	)		(73	)		(45	)		305			(795	)		432
Interest expense		63			62			62			63			62			250			224
Other income (expense):(2)
Gains (losses) from separate account assets		3			(39	)		—			—			—			(36	)		—
Other		6			(48	)		(9	)		14			(10	)		(37	)		16
Income tax expense		122			165			122			97			133			506			559
Net income (loss)		750			(31	)		607			259			1,001			1,585			3,108
Net realized gains (losses)		83			(760	)		(73	)		(45	)		305			(795	)		432
Net realized gains (losses) in other income (expense) (3)		16			(28	)		2			34			17			24			69
Tax expense (benefit) on net realized gains (losses)		12			2			8			(2	)		23			20			50
Income excluding net realized gains (losses)(1)	$	663		$	759		$	686		$	268		$	702		$	2,376		$	2,657
% Change versus prior year period(4)
Net premiums written		5	%		33	%		15	%		-5	%		3	%		12	%		3	%
Net premiums earned		7	%		33	%		16	%		0	%		6	%		14	%		1	%
Other ratios
Net premiums written/gross premiums written		72	%		72	%		71	%		72	%		73	%		72	%		68	%
Effective tax rate on income excluding net realized gains (losses)(1)		14.3	%		17.6	%		14.3	%		27.0	%		13.5	%		17.0	%		16.1	%
Effective tax rate		14.0	%		123.1	%		16.7	%		27.2	%		11.7	%		24.2	%		15.2	%
P&C combined ratio(4)
Loss and loss expense ratio		63.1	%		64.7	%		62.9	%		73.4	%		58.2	%		65.7	%		59.2	%
Policy acquisition cost ratio		16.6	%		14.8	%		16.3	%		16.9	%		18.1	%		16.0	%		17.4	%
Administrative expense ratio		13.2	%		10.8	%		13.4	%		14.7	%		14.0	%		12.9	%		13.6	%
Combined ratio		92.9	%		90.3	%		92.6	%		105.0	%		90.3	%		94.6	%		90.2	%
P&C expense ratio		29.8	%		25.6	%		29.7	%		31.6	%		32.1	%		28.9	%		31.0	%
P&C expense ratio excluding A&H		25.5	%		21.0	%		25.1	%		27.3	%		28.2	%		24.5	%		26.8	%
Large losses and other items (before tax)(4)
Reinstatement premiums (expensed) collected	$	—		$	26		$	8		$	(74	)	$	1		$	(40	)	$	(35	)
Catastrophe losses(5)	$	155		$	147		$	142		$	415		$	51		$	859		$	366
Prior period development (PPD)—unfavorable (favorable)(6)	$	(123	)	$	(194	)	$	(146	)	$	(93	)	$	(57	)	$	(556	)	$	(503	)
Loss and loss expense ratio excluding catastrophe losses and PPD(1) (6)		62.2	%		66.5	%		63.2	%		60.8	%		58.5	%		63.4	%		60.6	%

(1) See Non-GAAP Financial Measures.

(2) Gains (losses) from separate account assets that do not qualify for separate account reporting under GAAP are reclassified from Other income (expense) for purposes of presenting Life underwriting income.

(3) Net realized investment and derivative losses related to unconsolidated entities.

(4) Presented excluding the Life segment. This is a non-GAAP measure.

(5) For Q4 2011, catastrophe losses include $117 million related to Thailand floods.

(6) For Q3 2011, favorable prior period development is net of $26 million of net earned premium adjustments on loss sensitive policies.

Page 2

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

	December 31			September 30			June 30			March 31			December 31
	2011			2011			2011			2011			2010
Assets
Fixed maturities available for sale, at fair value	$	41,967		$	41,577		$	41,038		$	38,718		$	37,539
Fixed maturities held to maturity, at amortized cost		8,447			8,731			9,033			9,270			9,501
Equity securities, at fair value		647			621			582			537			692
Short-term investments, at fair value		2,301			2,376			2,380			2,375			1,983
Other investments		2,314			2,194			2,156			1,839			1,692
Total investments		55,676			55,499			55,189			52,739			51,407
Cash		614			766			833			1,115			772
Securities lending collateral		1,375			1,269			1,593			1,326			1,495
Insurance and reinsurance balances receivable		4,387			5,403			4,923			4,102			4,233
Reinsurance recoverable on losses and loss expenses		12,389			12,837			13,375			13,749			12,871
Deferred policy acquisition costs		1,761			1,792			1,821			1,725			1,641
Value of business acquired		648			757			796			745			634
Prepaid reinsurance premiums		1,541			1,582			1,711			1,540			1,511
Goodwill and other intangible assets		4,831			4,817			4,858			4,729			4,664
Deferred tax assets		612			623			586			703			769
Investments in partially owned insurance companies		380			371			353			348			360
Other assets		3,291			3,004			3,216			3,399			2,998
Total assets	$	87,505		$	88,720		$	89,254		$	86,220		$	83,355
Liabilities
Unpaid losses and loss expenses	$	37,477		$	38,476		$	38,951		$	38,843		$	37,391
Unearned premiums		6,334			6,594			6,913			6,533			6,330
Future policy benefits		4,274			4,376			4,384			3,480			3,106
Insurance and reinsurance balances payable		3,542			3,492			3,785			3,277			3,282
Securities lending payable		1,385			1,290			1,610			1,346			1,518
Payable for securities purchased		287			362			418			613			292
Accounts payable, accrued expenses, and other liabilities		4,770			5,461			4,011			3,684			3,495
Short-term debt		1,251			1,250			1,400			1,401			1,300
Long-term debt		3,360			3,360			3,360			3,358			3,358
Trust preferred securities		309			309			309			309			309
Total liabilities		62,989			64,970			65,141			62,844			60,381
Shareholders’ equity
Total shareholders’ equity, excl. AOCI		22,605			21,911			22,124			21,594			21,380
Accumulated other comprehensive income (AOCI)		1,911			1,839			1,989			1,782			1,594
Total shareholders’ equity		24,516			23,750			24,113			23,376			22,974
Total liabilities and shareholders’ equity	$	87,505		$	88,720		$	89,254		$	86,220		$	83,355
Book value per common share(1)	$	72.76		$	70.60		$	71.36		$	69.33		$	68.59
% change over prior quarter		3	%		-1	%		3	%		1	%		2	%
Tangible book value per common share(1)	$	58.43		$	56.28		$	56.98		$	55.31		$	54.66
% change over prior quarter		4	%		-1	%		3	%		1	%		-2	%

(1) See Non-GAAP Financial Measures.

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-11		% of Total Consolidated			4Q-10		% of Total Consolidated			% Change 4Q-11 vs. 4Q-10			Full Year 2011		% of Total Consolidated			Full Year 2010		% of Total Consolidated			% Change 2011 vs. 2010
Net premiums written
Property and all other	$	848		24	%	$	778		23	%		9	%	$	3,808		25	%	$	3,543		26	%		7	%
Agriculture		272		7	%		175		5	%		NM			1,951		12	%		509		4	%		NM
Casualty		1,393		38	%		1,444		42	%		-4	%		5,210		34	%		5,768		42	%		-10	%
Subtotal		2,513		69	%		2,397		70	%		5	%		10,969		71	%		9,820		72	%		12	%
Personal accident (A&H)(1)		907		25	%		876		26	%		4	%		3,613		24	%		3,346		24	%		8	%
Life(2)		210		6	%		149		4	%		41	%		790		5	%		542		4	%		46	%
Total consolidated	$	3,630		100	%	$	3,422		100	%		6	%	$	15,372		100	%	$	13,708		100	%		12	%
Net premiums earned
Property and all other	$	1,008		27	%	$	935		26	%		8	%	$	3,770		24	%	$	3,500		26	%		8	%
Agriculture		428		11	%		92		3	%		NM			1,942		13	%		398		3	%		NM
Casualty		1,304		34	%		1,546		43	%		-16	%		5,340		35	%		5,752		43	%		-7	%
Subtotal		2,740		72	%		2,573		72	%		6	%		11,052		72	%		9,650		72	%		15	%
Personal accident (A&H)(1)		900		23	%		861		24	%		5	%		3,594		23	%		3,331		25	%		8	%
Life(2)		191		5	%		138		4	%		38	%		741		5	%		523		3	%		42	%
Total consolidated	$	3,831		100	%	$	3,572		100	%		7	%	$	15,387		100	%	$	13,504		100	%		14	%
Income excluding net realized gains (losses)
Property, casualty, and all other	$	437		66	%	$	530		75	%		-18	%	$	1,586		67	%	$	2,017		76	%		-21	%
Agriculture		46		7	%		21		3	%		NM			120		5	%		76		3	%		NM
Personal accident (A&H)(1)		128		19	%		119		17	%		8	%		483		20	%		427		16	%		13	%
Life(2)		52		8	%		32		5	%		63	%		187		8	%		137		5	%		36	%
Total consolidated	$	663		100	%	$	702		100	%		-6	%	$	2,376		100	%	$	2,657		100	%		-11	%

(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.

Page 4

ACE Limited Segment Results—Consecutive Quarters (in millions of U.S. dollars, except ratios) (Unaudited)

Insurance—North American

	4Q-11			3Q-11			2Q-11			1Q-11			4Q-10			Full Year 2011			Full Year 2010
Gross premiums written	$	2,394		$	3,294		$	2,714		$	1,958		$	2,256		$	10,360		$	9,794
Net premiums written		1,624			2,207			1,735			1,285			1,519			6,851			5,797
Net premiums earned		1,662			2,299			1,604			1,346			1,511			6,911			5,651
Losses and loss expenses		1,211			1,838			1,233			994			1,030			5,276			3,918
Policy acquisition costs		158			176			143			136			178			613			625
Administrative expenses		144			153			147			148			154			592			561
Underwriting income		149			132			81			68			149			430			547
Net investment income		284			291			300			295			286			1,170			1,138
Net realized gains (losses)		26			(2	)		21			(11	)		254			34			417
Interest expense		4			4			3			4			3			15			9
Other income (expense)		3			(21	)		(3	)		16			1			(5	)		22
Income tax expense		90			120			95			89			114			394			436
Net income		368			276			301			275			573			1,220			1,679
Net realized gains (losses)		26			(2	)		21			(11	)		254			34			417
Net realized gains (losses) in other income (expense)		10			(9	)		3			24			3			28			24
Tax expense (benefit) on net realized gains (losses)		10			1			7			1			14			19			26
Income excluding net realized gains (losses)(1)	$	342		$	288		$	284		$	263		$	330		$	1,177		$	1,264
Combined ratio
Loss and loss expense ratio		72.8	%		80.0	%		76.9	%		73.8	%		68.1	%		76.3	%		69.3	%
Policy acquisition cost ratio		9.5	%		7.7	%		8.9	%		10.1	%		11.8	%		8.9	%		11.1	%
Administrative expense ratio		8.7	%		6.6	%		9.2	%		11.1	%		10.2	%		8.6	%		9.9	%
Combined ratio		91.0	%		94.3	%		95.0	%		95.0	%		90.1	%		93.8	%		90.3	%
Large losses and other items (before tax)
Reinstatement premiums (expensed) collected	$	—		$	7		$	—		$	(12	)	$	1		$	(5	)	$	(4	)
Catastrophe losses	$	42		$	119		$	110		$	76		$	21		$	347		$	143
Prior period development (PPD)—unfavorable (favorable)(2)	$	(31	)	$	(58	)	$	(71	)	$	(35	)	$	46		$	(195	)	$	(107	)
Loss and loss expense ratio excluding catastrophe losses and PPD(1) (2)		72.2	%		77.6	%		74.4	%		70.2	%		63.7	%		74.1	%		69.4	%
% Change versus prior year period
Net premiums written		7	%		53	%		21	%		-8	%		7	%		18	%		3	%
Net premiums earned		10	%		59	%		21	%		-2	%		11	%		22	%		-1	%
Other ratios
Net premiums written/gross premiums written		68	%		67	%		64	%		66	%		67	%		66	%		59	%

(1) See Non-GAAP Financial Measures.

(2) For Q3 2011, favorable prior period development is net of $13 million of net earned premium adjustments on loss sensitive policies.

Page 5

ACE Limited Segment Results—Consecutive Quarters (in millions of U.S. dollars, except ratios) (Unaudited)

Insurance—Overseas General

	4Q-11			3Q-11			2Q-11			1Q-11			4Q-10			Full Year 2011			Full Year 2010
Gross premiums written	$	1,856		$	1,883		$	1,937		$	1,940		$	1,750		$	7,616		$	6,992
Net premiums written		1,410			1,432			1,477			1,437			1,353			5,756			5,280
Net premiums earned		1,483			1,503			1,447			1,304			1,405			5,737			5,240
Losses and loss expenses		795			683			733			862			697			3,073			2,647
Policy benefits		—			—			—			—			—			—			4
Policy acquisition costs		363			370			348			312			346			1,393			1,251
Administrative expenses		242			237			242			224			227			945			840
Underwriting income (loss)		83			213			124			(94	)		135			326			498
Net investment income		141			138			138			131			128			548			475
Net realized gains (losses)		51			1			(10	)		(9	)		21			33			123
Interest expense		1			2			1			1			1			5			1
Other income (expense)		3			(10	)		5			2			8			—			13
Income tax expense		54			56			40			19			37			169			173
Net income		223			284			216			10			254			733			935
Net realized gains (losses)		51			1			(10	)		(9	)		21			33			123
Net realized gains (losses) in other income (expense)		2			(10	)		1			5			7			(2	)		22
Tax expense (benefit) on net realized gains (losses)		3			1			—			(3	)		3			1			23
Income excluding net realized gains (losses)(1)	$	173		$	294		$	225		$	11		$	229		$	703		$	813
Combined ratio
Loss and loss expense ratio		53.6	%		45.4	%		50.7	%		66.1	%		49.6	%		53.6	%		50.6	%
Policy acquisition cost ratio		24.4	%		24.7	%		24.0	%		23.9	%		24.6	%		24.2	%		23.9	%
Administrative expense ratio		16.4	%		15.8	%		16.7	%		17.2	%		16.1	%		16.5	%		16.0	%
Combined ratio		94.4	%		85.9	%		91.4	%		107.2	%		90.3	%		94.3	%		90.5	%
Large losses and other items (before tax)
Reinstatement premiums (expensed) collected	$	1		$	17		$	3		$	(63	)	$	—		$	(42	)	$	(33	)
Catastrophe losses	$	98		$	34		$	10		$	187		$	25		$	329		$	132
Prior period development (PPD)—unfavorable (favorable)	$	(80	)	$	(126	)	$	(40	)	$	(44	)	$	(91	)	$	(290	)	$	(290	)
Loss and loss expense ratio excluding catastrophe losses and PPD(1)		52.5	%		52.1	%		52.9	%		52.8	%		54.4	%		52.5	%		53.3	%
% Change versus prior year period
Net premiums written as reported		4	%		19	%		14	%		1	%		0	%		9	%		3	%
Net premiums earned as reported		6	%		14	%		15	%		4	%		0	%		9	%		2	%
Other ratios
Net premiums written/gross premiums written		76	%		76	%		76	%		74	%		77	%		76	%		76	%

(1) See Non-GAAP Financial Measures.

Page 6

ACE Limited Segment Results—Consecutive Quarters (in millions of U.S. dollars, except ratios) (Unaudited)

Global Reinsurance

	4Q-11			3Q-11			2Q-11			1Q-11			4Q-10			Full Year 2011			Full Year 2010
Gross premiums written	$	132		$	254		$	298		$	330		$	146		$	1,014		$	1,146
Net premiums written		132			250			282			315			143			979			1,075
Net premiums earned		249			240			254			260			268			1,003			1,071
Losses and loss expenses		136			94			112			279			127			621			518
Policy acquisition costs		42			50			47			46			51			185			204
Administrative expenses		14			12			14			12			14			52			55
Underwriting income (loss)		57			84			81			(77	)		76			145			294
Net investment income		74			70			71			72			75			287			288
Net realized gains (losses)		6			(29	)		(14	)		(13	)		24			(50	)		93
Interest expense		1			—			1			—			—			2			—
Other income (expense)		3			(7	)		(1	)		6			7			1			23
Income tax expense		5			7			8			10			11			30			42
Net income (loss)		134			111			128			(22	)		171			351			656
Net realized gains (losses)		6			(29	)		(14	)		(13	)		24			(50	)		93
Net realized gains (losses) in other income (expense)		3			(6	)		(2	)		4			6			(1	)		21
Tax expense (benefit) on net realized gains (losses)		—			(1	)		—			—			—			(1	)		1
Income (loss) excluding net realized gains (losses) (1)	$	125		$	145		$	144		$	(13	)	$	141		$	401		$	543
Combined ratio
Loss and loss expense ratio		54.8	%		39.2	%		44.1	%		107.3	%		47.5	%		62.0	%		48.4	%
Policy acquisition cost ratio		17.0	%		20.6	%		18.5	%		17.8	%		19.0	%		18.4	%		19.0	%
Administrative expense ratio		5.3	%		5.6	%		5.3	%		4.6	%		5.2	%		5.2	%		5.1	%
Combined ratio		77.1	%		65.4	%		67.9	%		129.7	%		71.7	%		85.6	%		72.5	%
Large losses and other items (before tax)
Reinstatement premiums (expensed) collected	$	(1	)	$	2		$	5		$	1		$	—		$	7		$	2
Catastrophe losses	$	15		$	(6	)	$	22		$	152		$	5		$	183		$	91
Prior period development (PPD)—unfavorable (favorable) (2)	$	(12	)	$	(10	)	$	(35	)	$	(14	)	$	(12	)	$	(71	)	$	(106	)
Loss and loss expense ratio excluding catastrophe losses and PPD(1) (2)		53.2	%		49.1	%		50.1	%		54.4	%		50.3	%		51.7	%		50.0	%
% Change versus prior year period
Net premiums written		-8	%		-8	%		-2	%		-15	%		-1	%		-9	%		4	%
Net premiums earned		-7	%		-11	%		-1	%		-6	%		6	%		-6	%		9	%
Other ratios
Net premiums written/gross premiums written		100	%		99	%		95	%		95	%		98	%		97	%		94	%

(1) See Non-GAAP Financial Measures.

(2) For Q3 2011, favorable prior period development is net of $13 million of net earned premium adjustments on loss sensitive policies.

Page 7

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

Life

	4Q-11			3Q-11			2Q-11			1Q-11			4Q-10			Full Year 2011			Full Year 2010
Gross premiums written	$	482		$	469		$	474		$	416		$	413		$	1,841		$	1,579
Net premiums written		464			454			459			409			407			1,786			1,556
Net premiums earned		437			448			452			399			388			1,736			1,542
Losses and loss expenses		144			130			147			128			117			549			496
Policy benefits(1)		119			83			108			91			90			401			353
(Gains) losses from separate account assets(1)		(3	)		39			—			—			—			36			—
Policy acquisition costs		58			70			66			61			65			255			257
Administrative expenses		78			77			72			68			57			295			228
Net investment income		59			60			59			46			43			224			172
Life underwriting income(2)		100			109			118			97			102			424			380
Net realized gains (losses):
Mark-to-market on guaranteed living benefits derivative (net of related hedges)		(10	)		(706	)		(67	)		—			2			(783	)		(178	)
Foreign exchange gains (losses) and all other		17			(26	)		(1	)		(13	)		3			(23	)		(14	)
Interest expense		2			3			3			3			3			11			3
Other income (expense)(1)		3			(8	)		(8	)		(5	)		(9	)		(18	)		(20	)
Income tax expense		10			13			14			13			16			50			62
Net income (loss)		98			(647	)		25			63			79			(461	)		103
Net realized gains (losses)		7			(732	)		(68	)		(13	)		5			(806	)		(192	)
Net realized gains (losses) in other income (expense)		1			(2	)		(1	)		1			1			(1	)		2
Tax expense on net realized gains (losses)		—			1			1			—			5			2			7
Income excluding net realized gains (losses)(3)	$	90		$	88		$	95		$	75		$	78		$	348		$	300
% Change versus prior year period
Net premiums written		14	%		22	%		17	%		6	%		4	%		15	%		5	%
Net premiums earned		13	%		16	%		16	%		5	%		5	%		13	%		8	%

(1) (Gains) losses from separate account assets that do not qualify for separate account reporting under GAAP are reclassified from Other income (expense) for purposes of presenting Life underwriting income. The offsetting movement in the separate account liabilities is included in Policy benefits.

(2) We assess the performance of our Life business based on Life underwriting income which includes Net investment income and (Gains) losses from separate account assets.

(3) See Non-GAAP Financial Measures.

Page 8

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

	Unpaid Losses									Net Paid  to Incurred Ratio
	Gross			Ceded			Net
Balance at December 31, 2009	$	37,783		$	12,745		$	25,038
Losses and loss expenses incurred		2,544			623			1,921
Losses and loss expenses paid		(2,491	)		(729	)		(1,762	)		92	%
Other (incl. foreign exch. revaluation)		(285	)		(79	)		(206	)
Balance at March 31, 2010	$	37,551		$	12,560		$	24,991
Losses and loss expenses incurred		2,725			925			1,800
Losses and loss expenses paid		(2,824	)		(976	)		(1,848	)		103	%
Other (incl. foreign exch. revaluation)		(390	)		(135	)		(255	)
Balance at June 30, 2010	$	37,062		$	12,374		$	24,688
Losses and loss expenses incurred		3,236			1,349			1,887
Losses and loss expenses paid		(3,010	)		(1,139	)		(1,871	)		99	%
Other (incl. foreign exch. revaluation)		454			166			288
Balance at September 30, 2010	$	37,742		$	12,750		$	24,992
Losses and loss expenses incurred		2,350			379			1,971
Losses and loss expenses paid		(2,954	)		(1,022	)		(1,932	)		98	%
Other (incl. foreign exch. revaluation)		253			42			211
Balance at December 31, 2010	$	37,391		$	12,149		$	25,242
Losses and loss expenses incurred		3,820			1,557			2,263
Losses and loss expenses paid		(2,847	)		(884	)		(1,963	)		87	%
Other (incl. foreign exch. revaluation)		479			161			318
Balance at March 31, 2011	$	38,843		$	12,983		$	25,860
Losses and loss expenses incurred		2,752			526			2,226
Losses and loss expenses paid		(2,730	)		(872	)		(1,858	)		83	%
Other (incl. foreign exch. revaluation)		86			30			56
Balance at June 30, 2011	$	38,951		$	12,667		$	26,284
Losses and loss expenses incurred		3,207			462			2,745
Losses and loss expenses paid		(3,366	)		(992	)		(2,374	)		86	%
Other (incl. foreign exch. revaluation)		(316	)		(95	)		(221	)
Balance at September 30, 2011	$	38,476		$	12,042		$	26,434
Losses and loss expenses incurred		3,066			780			2,286
Losses and loss expenses paid		(3,837	)		(1,166	)		(2,671	)		117	% (1)
Other (incl. foreign exch. revaluation)		(228	)		(54	)		(174	)
Balance at December 31, 2011	$	37,477		$	11,602		$	25,875
Add net recoverable on paid losses		—			787			(787	)
Balance including net recoverable on paid losses	$	37,477		$	12,389		$	25,088

(1) Net paid to incurred ratio for the quarter of 117% includes the impact of seasonal crop activity, increased catastrophe loss payments, and prior period development. Crop losses are primarily incurred during the second and third quarters and paid during the fourth quarter. Excluding the impact of these items, the net paid to incurred ratio is in line with prior quarters.

Page 9

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
	2011			2011			2011			2011			2010
Reinsurance recoverable on paid losses and loss expenses
Active operations	$	629		$	646		$	563		$	595		$	579
Brandywine		232			227			250			313			281
Other Run-off		41			37			44			38			38
Total	$	902		$	910		$	857		$	946		$	898
Reinsurance recoverable on unpaid losses and loss expenses
Active operations	$	9,805		$	10,222		$	10,751		$	10,893		$	9,956
Brandywine		1,775			1,759			1,822			1,931			2,024
Other Run-off		386			451			467			503			523
Total	$	11,966		$	12,432		$	13,040		$	13,327		$	12,503
Gross reinsurance recoverable
Active operations	$	10,434		$	10,868		$	11,314		$	11,488		$	10,535
Brandywine		2,007			1,986			2,072			2,244			2,305
Other Run-off		427			488			511			541			561
Total	$	12,868		$	13,342		$	13,897		$	14,273		$	13,401
Provision for uncollectible reinsurance(1)
Active operations	$	(299	)	$	(310	)	$	(326	)	$	(323	)	$	(324	)
Brandywine		(160	)		(170	)		(171	)		(172	)		(175	)
Other Run-off		(20	)		(25	)		(25	)		(29	)		(31	)
Total	$	(479	)	$	(505	)	$	(522	)	$	(524	)	$	(530	)
Net reinsurance recoverable
Active operations	$	10,135		$	10,558		$	10,988		$	11,165		$	10,211
Brandywine		1,847			1,816			1,901			2,072			2,130
Other Run-off		407			463			486			512			530
Total	$	12,389		$	12,837		$	13,375		$	13,749		$	12,871

(1) The provision for uncollectible reinsurance is based on a default analysis applied to gross reinsurance recoverables, net of approximately $2.8 billion of collateral.

Page 10

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

	December 31					September 30					June 30					March 31					December 31
	2011					2011					2011					2011					2010
Market Value
Fixed maturities available for sale	$	41,967				$	41,577				$	41,038				$	38,718				$	37,539
Fixed maturities held to maturity		8,605					8,873					9,078					9,202					9,461
Short-term investments		2,301					2,376					2,380					2,375					1,983
Total	$	52,873				$	52,826				$	52,496				$	50,295				$	48,983
Asset Allocation by Market Value
Treasury	$	2,361		5	%	$	2,060		4	%	$	1,832		3	%	$	1,880		4	%	$	2,075		4	%
Agency		1,725		3	%		1,640		3	%		1,755		3	%		1,946		4	%		2,015		4	%
Corporate and asset-backed		17,030		32	%		16,803		32	%		16,805		32	%		15,818		31	%		15,900		33	%
Mortgage-backed		13,237		25	%		13,821		26	%		13,483		26	%		12,880		25	%		12,362		25	%
Municipal(1)		2,888		6	%		2,741		5	%		2,534		5	%		2,453		5	%		2,449		5	%
Non-U.S.		13,331		25	%		13,385		25	%		13,707		26	%		12,943		26	%		12,199		25	%
Short-term investments		2,301		4	%		2,376		5	%		2,380		5	%		2,375		5	%		1,983		4	%
Total	$	52,873		100	%	$	52,826		100	%	$	52,496		100	%	$	50,295		100	%	$	48,983		100	%
Note: Insured municipal bonds represent $724 million, or 25% of our municipal bond holdings.
Credit Quality by Market Value
AAA	$	9,284		18	%	$	9,495		18	%	$	25,331		48	%	$	24,636		49	%	$	23,718		48	%
AA		20,562		39	%		21,105		40	%		4,783		9	%		4,543		9	%		4,714		10	%
A		10,106		19	%		9,923		19	%		9,944		19	%		8,847		18	%		8,482		17	%
BBB		6,152		12	%		5,883		11	%		5,691		11	%		5,583		11	%		5,487		11	%
BB		3,755		7	%		3,588		7	%		3,667		7	%		3,473		7	%		3,357		7	%
B		2,428		4	%		2,197		4	%		2,389		5	%		2,500		5	%		2,393		5	%
Other		586		1	%		635		1	%		691		1	%		713		1	%		832		2	%
Total	$	52,873		100	%	$	52,826		100	%	$	52,496		100	%	$	50,295		100	%	$	48,983		100	%
Cost/Amortized Cost
Fixed maturities available for sale	$	40,450				$	40,334				$	39,862				$	37,750				$	36,542
Fixed maturities held to maturity		8,447					8,731					9,033					9,270					9,501
Short-term investments		2,301					2,376					2,380					2,375					1,983
Subtotal		51,198					51,441					51,275					49,395					48,026
Equity securities		671					647					549					510					666
Other investments		2,112					1,970					1,916					1,613					1,511
Total	$	53,981				$	54,058				$	53,740				$	51,518				$	50,203
Avg. duration of fixed maturities		3.7 years					3.7 years					3.8 years					3.8 years					3.7 years	��
Avg. market yield of fixed maturities(2)		3.1	%				3.2	%				3.4	%				3.5	%				3.6	%
Avg. credit quality(3)		A/Aa					A/Aa					AA					AA					AA
Avg. yield on invested assets (4)		4.2	%				4.3	%				4.3	%				4.3	%				4.3	%

(1) The rating of the municipal portfolio is AA with 13% of our holdings pre-funded with AA/Aaa Federal securities. The portfolio is highly diversified predominantly in State general obligation bonds and essential service revenue bonds (education, utilities, water, power, sewers).

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

(3) We use a split rating due to S&P’s downgrade of U.S. Treasury and Agency securities.

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

Page 11

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

Mortgage-backed Fixed Income Portfolio

Mortgage-backed securities

	S&P Credit Rating
	AAA		AA		A		BBB		BB and below		Total
Market Value at December 31, 2011
Agency residential mortgage-backed (RMBS)	$	—	$	11,118	$	—	$	—	$	—	$	11,118
Non-agency RMBS		201		31		25		18		520		795
Commercial mortgage-backed		1,286		22		10		6		—		1,324
Total mortgage-backed securities at market value	$	1,487	$	11,171	$	35	$	24	$	520	$	13,237

	S&P Credit Rating
	AAA		AA		A		BBB		BB and below		Total
Amortized Cost at December 31, 2011
Agency RMBS	$	—	$	10,705	$	—	$	—	$	—	$	10,705
Non-agency RMBS		210		33		28		20		679		970
Commercial mortgage-backed		1,219		19		9		6		—		1,253
Total mortgage-backed securities at amortized cost	$	1,429	$	10,757	$	37	$	26	$	679	$	12,928

Mortgage-backed securities total $13.2 billion, are rated predominantly AA and comprise 25% of the fixed income portfolio. This compares to a 34% mortgage-backed weighting in representative indices of the U.S. fixed income market. The minimum rating for initial purchases of mortgage-backed securities is AA for agency mortgages and AAA for non-agency mortgages.

Securities issued by Federal agencies with implied or explicit government guarantees total $11.1 billion and represent 93% of the residential mortgage-backed portfolio.

Non-agency residential mortgage-backed securities are backed by prime collateral, and broadly diversified in over 129,000 loans. The portfolio’s original loan-to-value ratio is approximately 68% with an average FICO score of 730. With this conservative loan-to-value ratio and subordinated collateral of 7%, the cumulative 5-year foreclosure rate would have to rise to 12% before principal is significantly impaired. The current foreclosure rate of ACE's non-agency RMBS portfolio is 9%.

Commercial mortgage-backed securities of $1.3 billion are rated predominantly AAA, broadly diversified with over 14,000 loans and seasoned with 60% of the portfolio issued before 2006 and 27% of the portfolio issued after 2009. The average loan-to-value ratio is approximately 65% with a debt service coverage ratio in excess of 1.7 and weighted average subordinated collateral of 33%. The cumulative foreclosure rate would have to rise to 43% before principal is impaired. The current foreclosure rate of the portfolio is about 2.7%.

Page 12

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

U.S. Corporate and Asset-backed Fixed Income Portfolios

Market Value at December 31, 2011

	S&P Credit Rating
	Investment Grade
	AAA		AA		A		BBB		Total
Asset-backed	$	351	$	86	$	1	$	—	$	438
Banks		—		230		2,099		337		2,666
Basic Materials		—		—		120		261		381
Communications		—		—		629		766		1,395
Consumer, Cyclical		—		101		251		251		603
Consumer, Non-Cyclical		61		542		719		543		1,865
Diversified Financial Services		4		64		142		174		384
Energy		81		14		219		572		886
Industrial		—		456		336		166		958
Utilities		—		3		534		523		1,060
All Others		52		108		446		489		1,095
Total	$	549	$	1,604	$	5,496	$	4,082	$	11,731

U.S. Investment Grade Corporate Fixed Income Portfolio

The average credit quality of ACE's US investment grade bond portfolio is high at A.

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.

Market Value at December 31, 2011

	S&P Credit Rating
	Below Investment Grade
	BB		B		CCC		Total
Asset-backed	$	—	$	—	$	22	$	22
Banks		15		37		—		52
Basic Materials		270		89		4		363
Communications		364		472		7		843
Consumer, Cyclical		376		313		20		709
Consumer, Non-Cyclical		629		480		11		1,120
Diversified Financial Services		16		29		3		48
Energy		783		212		8		1,003
Industrial		319		197		7		523
Utilities		255		46		5		306
All Others		158		147		5		310
Total	$	3,185	$	2,022	$	92	$	5,299

U.S. 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.

Six 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. The portfolio comprises over 700 issuers with our largest current issuer exposure at $81 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.

Page 13

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

Non-U.S. Fixed Income Portfolio

December 31, 2011

	Market Value by S&P Credit Rating												Amortized
	AAA		AA		A		BBB		BB and below		Total		Cost
United Kingdom	$	1,161	$	—	$	—	$	—	$	—	$	1,161	$	1,113
Canada		912		—		—		—		—		912		877
Republic of Korea		—		—		448		—		—		448		426
Japan		—		398		—		—		—		398		397
Germany		344		—		—		—		—		344		333
Province of Ontario		—		227		—		—		—		227		216
Federative Republic of Brazil		—		—		—		190		—		190		185
France		152		—		—		—		—		152		151
Province of Quebec		—		—		151		—		—		151		141
Swiss Confederation		141		—		—		—		—		141		134
People's Republic of China		54		75		—		—		—		129		126
Kingdom of Thailand		—		—		121		5		—		126		121
Federation of Malaysia		—		—		125		—		—		125		124
State of Queensland		69		45		—		—		—		114		109
Commonwealth of Australia		107		—		—		—		—		107		98
United Mexican States		1		—		38		52		—		91		86
State of New South Wales		77		—		—		—		—		77		73
Taiwan		—		54		—		—		—		54		52
State of Victoria		54		—		—		—		—		54		51
Socialist Republic of Vietnam				—		—		—		39		39		39
State of Qatar		—		38		—		—		—		38		37
Province of Manitoba		—		36		—		—		—		36		34
Republic of Austria		36		—		—		—		—		36		35
Russian Federation		—						36				36		35
Dominion of New Zealand		1		35		—		—		—		36		35
Other Non-U.S. Government		216		139		71		30		53		509		491
Non-U.S. Government Securities	$	3,325	$	1,047	$	954	$	313	$	92	$	5,731	$	5,519
Eurozone Non-U.S. Corporate(1)		728		381		447		473		318		2,347		2,339
Other Non-U.S. Corporate		783		594		2,207		1,161		508		5,253		5,102
	$	4,836	$	2,022	$	3,608	$	1,947	$	918	$	13,331	$	12,960

(1) Excludes United Kingdom

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.

80% 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 54% of holdings are rated AAA or guaranteed by governments or quasi-government agencies.

Corporate bond holdings are highly diversified across industries and geographies. Issuer limits are based on credit rating (AA 2%, A 1%, BBB 0.5% of total portfolio) and are monitored on a daily basis by ACE via an internal compliance system.

Page 14

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

Eurozone Non-U.S. Fixed Income Portfolio (Excluding United Kingdom)

December 31, 2011

	Market Value by Industry										Amortized
	Bank		Financial		Industrial		Utility		Total		Cost
Netherlands	$	202	$	129	$	239	$	130	$	700	$	684
France		126		31		113		142		412		421
Germany		292		9		68		7		376		366
Luxembourg		27		10		214		88		339		345
Euro Supranational		197		—		—		—		197		193
Spain		52		4		55		6		117		120
Ireland		20		—		75		19		114		113
Italy		26		1		12		2		41		46
Austria		20		—		4		—		24		24
Finland		7		—		3		3		13		13
Belgium		—		—		12		1		13		12
Portugal		—		—		1		—		1		2
Eurozone Non-U.S. Corporate Securities	$	969	$	184	$	796	$	398	$	2,347	$	2,339

Note: ACE has no investments in Greece

Top 10 Exposures—Eurozone Banks (Excluding United Kingdom)

December 31, 2011	Market Value		Amortized Cost		Rating
KFW	$	184	$	180	AAA
European Investment Bank		178		175	AAA
Rabobank Nederland NV		99		98	AA
Deutsche Bank AG		47		46	A+
Bank Nederlandse Gemeenten		34		34	AAA
Credit Agricole Groupe		31		31	A+
BNP Paribas SA		29		30	AA-
Hypo Real Estate Holding AG		25		25	A-
Nederlandse Waterschapsbank NV		24		24	AAA
ABN AMRO Group NV		24		24	A+

Top 10 Exposures—Eurozone Corporate (Excluding United Kingdom)

December 31, 2011	Market Value		Amortized Cost		Rating
EDF SA	$	76	$	80	AA-
ING Groep NV		74		77	A
Deutsche Telekom AG		70		64	BBB+
Royal Dutch Shell PLC		65		60	AA
Intelsat SA		52		51	B
Telefonica SA		46		46	BBB+
Telecom Italia SpA		43		45	BBB
Gazprom OAO		40		39	BBB
Liberty Global Inc		39		37	B+
ArcelorMittal		36		37	BBB-

Page 15

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

Investment portfolio

Top 25 Exposures—Fixed Maturity Investments

	December 31, 2011	Market Value		Rating
1	General Electric Co	$	429	AA+
2	JP Morgan Chase & Co		428	A
3	Citigroup Inc		345	A-
4	The Goldman Sachs Group Inc		315	A-
5	Bank of America Corp		301	A-
6	Verizon Communications Inc		289	A-
7	Morgan Stanley		277	A-
8	AT&T INC		241	A-
9	Wells Fargo & Co		200	A+
10	HSBC Holdings Plc		194	A+
11	Lloyds Banking Group Plc		172	A-
12	Comcast Corp		170	BBB+
13	Kraft Foods Inc		165	BBB
14	Royal Bank of Scotland Group Plc		156	A-
15	Time Warner Cable Inc		140	BBB
16	ConocoPhillips		131	A
17	BP Plc		121	A
18	Credit Suisse Group		121	A
19	Pfizer Inc		118	AA
20	American Express Co		117	BBB+
21	Dominion Resources Inc/VA		115	A-
22	Philip Morris International Inc		111	A
23	Anheuser-Busch InBev NV		111	A-
24	Enterprise Products Partners LP		108	BBB-
25	UBS AG		107	A

Page 16

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

	Three months ended December 31, 2011									Year ended December 31, 2011
	Net Realized			Net Unrealized						Net Realized			Net Unrealized
	Gains			Gains			Net			Gains			Gains			Net
	(Losses) (1)			(Losses)			Impact			(Losses)(1)			(Losses)			Impact
Fixed maturities	$	21		$	236		$	257		$	164		$	480		$	644
Fixed income derivatives		14			—			14			(143	)		—			(143	)
Total fixed maturities		35			236			271			21			480			501
Public equity		—			4			4			9			(47	)		(38	)
Private equity		18			(20	)		(2	)		24			22			46
Total equity		18			(16	)		2			33			(25	)		8
Mark-to-market gains (losses) from derivative transactions(2)		(13	)		—			(13	)		(787	)		—			(787	)
Foreign exchange gains (losses)		76			—			76			(13	)		—			(13	)
Other		(14	)		13			(1	)		(21	)		15			(6	)
Partially-owned entities(3)		(3	)		1			(2	)		(4	)		3			(1	)
Income tax expense		12			45			57			20			157			177
Net gains (losses)	$	87		$	189		$	276		$	(791	)	$	316		$	(475	)

(1) Other-than-temporary impairments for the quarter includes $18 million for fixed maturities. Year to date other-than-temporary impairments of $50 million include $46 million for fixed maturities, $3 million for private equity, and $1 million for public equity.

(2) Includes $10 million of realized losses on the life reinsurance operations for the quarter which comprises a $146 million gain on guaranteed living benefit derivatives and $156 million of losses on other derivatives, including S&P put options and futures. The full year includes $783 million of realized losses on the life reinsurance operations which comprises a $779 million loss on guaranteed living benefit derivatives and $4 million of losses on other derivatives, including S&P put options and futures.

(3) Partially-owned entities are investments where we hold more than an insignificant percentage of the investee's shares. The net income or loss is included in other income (expense).

	Three months ended December 31, 2010									Year ended December 31, 2010
	Net Realized			Net Unrealized						Net Realized			Net Unrealized
	Gains			Gains			Net			Gains			Gains			Net
	(Losses) (4)			(Losses)			Impact			(Losses)(4)			(Losses)			Impact
Fixed maturities	$	109		$	(653	)	$	(544	)	$	380		$	973		$	1,353
Fixed income derivatives		35			—			35			58			—			58
Total fixed maturities		144			(653	)		(509	)		438			973			1,411
Public Equity		—			(3	)		(3	)		84			(44	)		40
Private equity		15			10			25			53			62			115
Total equity		15			7			22			137			18			155
Mark-to-market gains (losses) from derivative transactions (5)		2			—			2			(197	)		—			(197	)
Foreign exchange gains (losses)		(18	)		—			(18	)		(54	)		—			(54	)
Other(6)		177			(132	)		45			174			(92	)		82
Partially-owned entities(7)		2			(5	)		(3	)		3			(5	)		(2	)
Income tax expense		23			(214	)		(191	)		50			152			202
Net gains (losses)	$	299		$	(569	)	$	(270	)	$	451		$	742		$	1,193

(4) Other-than-temporary impairments for the quarter include $4 million for fixed maturities. Year to date other-than-temporary impairments of $59 million include $46 million for fixed maturities, and $13 million for other investments.

(5) Includes $2 million of realized gains on the life reinsurance operations for the quarter which comprises a $126 million gain on guaranteed living benefit derivatives and $124 million of losses on other derivatives, including S&P put options and futures. The full year includes $178 million of realized losses on the life reinsurance operations which is comprised of a $28 million loss on guaranteed living benefit derivatives and $150 million of losses on other derivatives, including S&P put options and futures.

(6) The quarter includes $175 million of non-taxable realized gain which includes the reversal of a previously recorded unrealized gain of $131 million which relate to the acquisition of Rain & Hail. This resulted in a tax benefit of $46 million.

(7) Partially-owned entities are investments where we hold more than an insignificant percentage of the investee's shares. The net income or loss is included in other income (expense).

Page 17

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

	December 31			September 30			June 30			March 31			December 31			December 31
	2011			2011			2011			2011			2010			2009
Total short-term debt(1)	$	1,251		$	1,250		$	1,400		$	1,401		$	1,300		$	161
Total long-term debt		3,360			3,360			3,360			3,358			3,358			3,158
Total debt	$	4,611		$	4,610		$	4,760		$	4,759		$	4,658		$	3,319
Total trust preferred securities	$	309		$	309		$	309		$	309		$	309		$	309
Total shareholders’ equity	$	24,516		$	23,750		$	24,113		$	23,376		$	22,974		$	19,667
Total capitalization	$	29,436		$	28,669		$	29,182		$	28,444		$	27,941		$	23,295
Tangible capital(2)	$	24,605		$	23,852		$	24,324		$	23,715		$	23,277		$	19,364
Leverage ratios
Debt/ total capitalization		15.7	%		16.1	%		16.3	%		16.7	%		16.7	%		14.2	%
Debt plus trust preferred securities/ total capitalization		16.7	%		17.2	%		17.4	%		17.8	%		17.8	%		15.6	%
Debt/ tangible capital		18.7	%		19.3	%		19.6	%		20.1	%		20.0	%		17.1	%
Debt plus trust preferred securities/ tangible capital		20.0	%		20.6	%		20.8	%		21.4	%		21.3	%		18.7	%

Note: As of December 31, 2011, there was $1.9 billion usage of credit facilities on a total commitment of $2.4 billion.

(1) Repurchase agreements in the amount of $1.25 billion matured during the quarter, and there were new repurchase agreements in the amount of $1.25 billion.

(2) Tangible capital is equal to total capitalization less goodwill and other intangible assets.

Page 18

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

	Three months ended December 31						Year ended December 31
	2011			2010			2011			2010
Numerator
Income to common shares, excl. net realized gains (losses)(1)	$	663		$	702		$	2,376		$	2,657
Net realized gains (losses), net of income tax		87			299			(791	)		451
Net income available to the holders of common shares	$	750		$	1,001		$	1,585		$	3,108
Rollforward of Common Shares Outstanding
Shares—beginning of period		336,390,293			339,229,422			334,942,852			336,524,657
Repurchase of shares		(461,428	)		(4,926,082	)		(2,058,860	)		(4,926,082	)
Issued under employee stock purchase plan		99,651			—			302,091			240,979
Shares (cancelled) granted		(140,766	)		102,761			999,955			1,774,583
Issued for option exercises		1,039,526			536,751			2,741,238			1,328,715
Shares—end of period		336,927,276			334,942,852			336,927,276			334,942,852
Denominator
Weighted average shares outstanding		338,260,786			340,150,218			338,159,409			339,685,143
Effect of other dilutive securities		2,740,500			2,405,219			2,620,815			1,561,244
Adj. wtd. avg. shares outstanding and assumed conversions		341,001,286			342,555,437			340,780,224			341,246,387
Basic earnings per share
Income excluding net realized gains (losses)(1)	$	1.96		$	2.06		$	7.02		$	7.82
Net realized gains (losses), net of income tax		0.26			0.88			(2.34	)		1.33
Net income	$	2.22		$	2.94		$	4.68		$	9.15
Diluted earnings per share
Income excluding net realized gains (losses)(1)	$	1.94		$	2.05		$	6.97		$	7.79
Net realized gains (losses), net of income tax		0.26			0.87			(2.32	)		1.32
Net income	$	2.20		$	2.92		$	4.65		$	9.11

(1) See Non-GAAP Financial Measures.

Page 19

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

Regulation G—Non-GAAP Financial Measures

In presenting our results, we have included and discussed certain non-GAAP measures. These non-GAAP measures, which may be defined differently by other companies, are important for an understanding of our overall results of operations. However, they should not be viewed as a substitute for measures determined in accordance with generally accepted accounting principles (GAAP). A reconciliation of book value per common share is provided on page 22.

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). Life underwriting income includes net investment income and gains (losses) from separate account assets that do not qualify for separate account reporting under GAAP.

Loss and loss expense ratio excluding the impact of catastrophe losses and prior period development (PPD) is a non-GAAP financial measure. The loss ratio numerator includes Losses and loss expenses adjusted to exclude catastrophe losses and PPD. The loss ratio denominator includes Net premiums earned adjusted to exclude the amount of reinstatement premiums (expensed) collected. In periods where there are adjustments on loss sensitive policies, these adjustments are excluded from PPD and net earned premiums when calculating this ratio. We believe that excluding the impact of catastrophe losses and PPD provides a better evaluation of our core underwriting performance and enhances the understanding of the trends in our property & casualty business that may be obscured by these items.

Annualized ROE calculated using income excluding net realized gains (losses) is a non-GAAP financial measure. The ROE numerator includes income adjusted to exclude net realized gains (losses). The ROE denominator includes the average shareholders’ equity for the period adjusted to exclude unrealized gains (losses) on investments and the deferred tax component included in shareholders’ equity. To annualize a quarterly rate, multiply by four. Annualized ROE calculated using income excluding realized gains (losses) is a useful measure as it enhances the understanding of the return on shareholders’ equity by highlighting the underlying profitability relative to shareholders’ equity excluding the effect of unrealized gains and losses on our investments.

Income excluding net realized gains (losses) and the related tax expense (benefit) is a common performance measurement for insurance companies and non-GAAP measure. 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 entities 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.

The following table presents the reconciliation of Net income to Income excluding net realized gains (losses):

														Full Year			Full Year
	4Q-11		3Q-11			2Q-11			1Q-11			4Q-10		2011			2010
Net income (loss), as reported	$	750	$	(31	)	$	607		$	259		$	1,001	$	1,585		$	3,108
Net realized gains (losses)		83		(760	)		(73	)		(45	)		305		(795	)		432
Net realized gains (losses) in other income (expense)(1)		16		(28	)		2			34			17		24			69
Income tax expense (benefit) on net realized gains (losses)		12		2			8			(2	)		23		20			50
Income excluding net realized gains (losses)	$	663	$	759		$	686		$	268		$	702	$	2,376		$	2,657

(1) Realized gains (losses) on partially-owned entities, which are investments where we hold more than an insignificant percentage of the investee's shares. The net income or loss is included in other income (expense).

Page 20

   ACE Limited Non-GAAP Financial Measures—2 (in millions of U.S. dollars, except ratios) (Unaudited)

Regulation G—Non-GAAP Financial Measures (continued)

The following table presents the reconciliation of effective tax rate to the effective tax rate on income excluding net realized gains (losses):

																Full Year			Full Year
	4Q-11			3Q-11			2Q-11			1Q-11			4Q-10			2011			2010
Tax expense, as reported	$	122		$	165		$	122		$	97		$	133		$	506		$	559
Tax expense (benefit) on net realized gains (losses)		12			2			8			(2	)		23			20			50
Tax expense, adjusted	$	110		$	163		$	114		$	99		$	110		$	486		$	509
Income before tax, as reported	$	872		$	134		$	729		$	356		$	1,134		$	2,091		$	3,667
Less: realized gains (losses)		83			(760	)		(73	)		(45	)		305			(795	)		432
Less: realized gains (losses) in other income (expense)		16			(28	)		2			34			17			24			69
Income excluding net realized gains (losses) before tax	$	773		$	922		$	800		$	367		$	812		$	2,862		$	3,166
Effective tax rate		14.0	%		123.4	%		16.8	%		27.2	%		11.8	%		24.2	%		15.2	%
Adjustment for tax impact of net realized gains (losses)		0.3	%		-105.8	%		-2.5	%		-0.2	%		1.7	%		-7.2	%		0.9	%
Effective tax rate on income excluding net realized gains (losses)		14.3	%		17.6	%		14.3	%		27.0	%		13.5	%		17.0	%		16.1	%

The following table presents the reconciliation of annualized ROE calculated using net income to annualized ROE calculated using income excluding net realized gains (losses):

							Full Year			Full Year
	4Q-11			4Q-10			2011			2010
Net income	$	750		$	1,001		$	1,585		$	3,108
Income excluding net realized gains (losses)	$	663		$	702		$	2,376		$	2,657
Equity—beginning of period, as reported	$	23,750		$	22,845		$	22,974		$	19,667
Less: unrealized gains (losses) on investments, net of deferred tax		1,526			1,968			1,399			657
Equity—beginning of period, as adjusted	$	22,224		$	20,877		$	21,575		$	19,010
Equity—end of period, as reported	$	24,516		$	22,974		$	24,516		$	22,974
Less: unrealized gains (losses) on investments, net of deferred tax		1,715			1,399			1,715			1,399
Equity—end of period, as adjusted	$	22,801		$	21,575		$	22,801		$	21,575
Average equity, as reported	$	24,133		$	22,910		$	23,745		$	21,321
Average equity, as adjusted	$	22,513		$	21,226		$	22,188		$	20,293
Annualized ROE calculated using income excluding net realized gains (losses)		11.8	%		13.2	%		10.7	%		13.1	%
Annualized ROE calculated using net income		12.4	%		17.5	%		6.7	%		14.6	%

Page 21

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

	December 31			September 30			June 30			March 31			December 31
	2011			2011			2011			2011			2010
Reconciliation of Book Value per Common Share
Shareholders’ equity	$	24,516		$	23,750		$	24,113		$	23,376		$	22,974
Less: goodwill and other intangible assets		4,831			4,817			4,858			4,729			4,664
Numerator for tangible book value per share	$	19,685		$	18,933		$	19,255		$	18,647		$	18,310
Denominator		336,927,276			336,390,293			337,912,324			337,173,864			334,942,852
Book value per common share	$	72.76		$	70.60		$	71.36		$	69.33		$	68.59
Tangible book value per common share	$	58.43		$	56.28		$	56.98		$	55.31		$	54.66
Reconciliation of Book Value
Shareholders’ equity, beginning of quarter	$	23,750		$	24,113		$	23,376		$	22,974		$	22,845
Income excluding net realized gains (losses)		663			759			686			268			702
Net realized gains (losses), net of tax		87			(790	)		(79	)		(9	)		299
Net unrealized gains (losses), net of tax		189			(48	)		151			24			(569	)
Repurchase of shares		(32	)		(100	)		—			—			(303	)
Dividend declared on common shares		(118	)		(117	)		(119	)		(113	)		(113	)
Cumulative translation, net of tax		(123	)		(105	)		56			168			47
Pension liability		6			3			—			(4	)		6
Other (1)		94			35			42			68			60
	$	24,516		$	23,750		$	24,113		$	23,376		$	22,974

(1) Other primarily includes proceeds from exercise of stock options and stock compensation.

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ACE Limited Glossary

ACE Limited Consolidatedcomprises all segments including Corporate and Other.

Annualized return on equity calculated using income excluding net realized gains (losses):Income excluding net realized gains (losses) divided by average shareholders’ equity for the period excluding unrealized gains (losses) on investments and the deferred tax component included in shareholders' equity. To annualize a quarterly rate multiply by four.

Book value per common share: 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 on income excluding net realized gains (losses):Income tax expense excluding tax expense (benefit) on net realized gains (losses) divided by income excluding net realized gains (losses) before tax.

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

Life underwriting income:Net premiums earned and net investment income less policy benefits, acquisition costs, and administrative expenses. In addition, Life underwriting income includes gains/losses from separate account assets that do not qualify for separate account reporting under GAAP.

NM: Not meaningful.

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

Tangible capital:Total capitalization less goodwill and other intangible assets.

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

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