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 Operating Income by Line of Business		4-5
III.Segment Results
- Insurance—North American—For Reference Only		6
- Insurance—North American P&C		7
- Insurance—North American Agriculture		8
- Insurance—Overseas General		9
- Global Reinsurance		10
- Life		11
IV.Balance Sheet Details
- Loss Reserve Rollforward		12
- Reinsurance Recoverable Analysis		13
- Investment Portfolio		14-19
- Net Realized and Unrealized Gains (Losses)		20
- Capital Structure		21
- Computation of Basic and Diluted Earnings Per Share		22
V.Other Disclosures
- Non-GAAP Financial Measures		23-24
- Book Value and Book Value per Common Share		25
- Glossary		26

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

Note: All dollar amounts in the Financial Supplement are rounded. However, percent changes and ratios are calculated using whole dollars. Accordingly, calculations using rounded dollars may differ.

	Three months ended June 30						% Change 2Q-13 vs.			Constant $ 2012(1)		Constant $ %  Change 2Q-13 vs. 2Q-12 (1)			Six months ended June 30						% Change YTD-13 vs.			Constant $			Constant $ % Change YTD-13 vs.
	2013			2012			2Q-12								2013			2012			YTD-12			2012(1)			YTD-12(1)
Gross premiums written	$	6,030		$	5,653			6.7	%	$	5,589		7.9	%	$	10,993		$	10,440			5.3	%	$	10,379			5.9	%
Net premiums written	$	4,391		$	4,130			6.3	%	$	4,082		7.6	%	$	8,189		$	7,702			6.3	%	$	7,655			7.0	%
Net premiums earned	$	4,067		$	3,783			7.5	%	$	3,745		8.6	%	$	7,640		$	7,164			6.6	%	$	7,119			7.3	%
Net investment income	$	534		$	537			-0.6	%						$	1,065		$	1,081			-1.5	%
Net income	$	891		$	328			171.2	%						$	1,844		$	1,301			41.7	%
Operating income	$	790		$	743			6.3	%						$	1,536		$	1,444			6.4	%
Comprehensive income (loss)	$	(499	)	$	457			NM							$	217		$	1,728			-87.4	%
Operating cash flow	$	895		$	811										$	1,808		$	1,383
P&C combined ratio
Loss and loss expense ratio		58.7	%		59.5	%										58.0	%		58.3	%
Underwriting and administrative expense ratio		29.2	%		29.2	%										30.1	%		30.6	%
Combined ratio		87.9	%		88.7	%										88.1	%		88.9	%
Operating return on equity (ROE)		12.3	%		12.6	%										12.1	%		12.5	%
ROE		12.9	%		5.1	%										13.5	%		10.4	%
Operating effective tax rate		11.2	%		14.6	%										11.0	%		13.8	%
Effective tax rate		11.5	%		31.0	%										11.4	%		16.6	%
Diluted earnings per share
Operating income	$	2.29		$	2.17			5.5	%						$	4.46		$	4.22			5.7	%
Net income	$	2.59		$	0.96			169.8	%						$	5.36		$	3.80			41.1	%
																					% Change 2Q-13 vs. 2Q-12			December 31 2012			% Change 2Q-13 vs. 4Q-12
Book value per common share															$	80.26		$	75.98			5.6	%	$	80.90			-0.8	%
Tangible book value per common share															$	64.40		$	61.75			4.3	%	$	66.28			-2.8	%
Tangible book value per common share excluding 2013 acquisitions(2)															$	65.93		$	61.75			6.8	%	$	66.28			-0.5	%
Weighted average basic common shares outstanding		341.0			339.8											340.9			339.2
Weighted average diluted common shares outstanding		344.1			342.7											344.0			342.2
Debt plus trust preferred securities/ tangible capital																21.6	%		19.5	%					18.4	%

(1) Prior periods on a constant dollar basis.

(2) For 2013, tangible book value per common share excludes the impact from goodwill and intangibles relating to the acquisitions of ABA Seguros and Fianzas Monterrey of $348 million and $175 million, respectively.

Financial Highlights Page 1

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

ACE Limited Consolidated

																YTD			YTD			Full Year
	2Q-13			1Q-13			4Q-12			3Q-12			2Q-12			2013			2012			2012
Consolidated Results (Including Corporate and Other) Excluding Life Segment(1)
Gross premiums written	$	5,518		$	4,435		$	4,602		$	5,496		$	5,140		$	9,953		$	9,415		$	19,513
Net premiums written		3,904			3,296			3,140			4,228			3,644			7,200			6,728			14,096
Net premiums earned		3,587			3,096			3,359			4,185			3,309			6,683			6,217			13,761
Losses and loss expenses		2,105			1,769			2,535			2,883			1,968			3,874			3,624			9,042
Policy acquisition costs		570			534			546			529			531			1,104			1,037			2,112
Administrative expenses		478			429			462			438			436			907			868			1,768
Underwriting income (loss)		434			364			(184	)		335			374			798			688			839
Net investment income		471			468			502			470			475			939			958			1,930
Net realized gains (losses)		68			79			83			11			27			147			56			150
Interest expense		69			56			60			60			59			125			118			238
Other income (expense)
Net realized gains (losses) in other income (expense)		8			28			30			23			(1	)		36			22			75
Other		(31	)		(22	)		(10	)		(20	)		(14	)		(53	)		(43	)		(73	)
Income tax expense (benefit)		105			109			(149	)		133			129			214			228			212
Net income		776			752			510			626			673			1,528			1,335			2,471
Net realized gains (losses)		68			79			83			11			27			147			56			150
Net realized gains (losses) in other income (expense) (2)		8			28			30			23			(1	)		36			22			75
Tax expense on net realized gains (losses)		14			31			21			9			17			45			24			54
Operating income		714			676			418			601			664			1,390			1,281			2,300
Life segment operating income		76			70			74			87			79			146			163			324
Consolidated operating income	$	790		$	746		$	492		$	688		$	743		$	1,536		$	1,444		$	2,624
% Change versus prior year period(1)
Net premiums written as reported		7.1	%		6.9	%		0.3	%		9.6	%		5.3	%		7.0	%		4.0	%		4.7	%
Net premiums earned as reported		8.4	%		6.4	%		-0.1	%		4.4	%		1.1	%		7.5	%		1.0	%		1.7	%
Net premiums written constant $		8.6	%														7.8	%
Net premiums earned constant $		9.7	%														8.3	%
Other ratios
Net premiums written/gross premiums written(1)		71	%		74	%		68	%		77	%		71	%		72	%		71	%		72	%
Operating effective tax rate		11.2	%		10.8	%		-46.8	%		16.7	%		14.6	%		11.0	%		13.8	%		7.5	%
P&C combined ratio(1)
Loss and loss expense ratio		58.7	%		57.1	%		75.5	%		68.9	%		59.5	%		58.0	%		58.3	%		65.7	%
Policy acquisition cost ratio		15.9	%		17.2	%		16.2	%		12.7	%		16.1	%		16.5	%		16.7	%		15.3	%
Administrative expense ratio		13.3	%		13.9	%		13.8	%		10.4	%		13.1	%		13.6	%		13.9	%		12.9	%
Combined ratio		87.9	%		88.2	%		105.5	%		92.0	%		88.7	%		88.1	%		88.9	%		93.9	%
Combined ratio excluding catastrophe losses and PPD		89.2	%		89.4	%		91.4	%		96.5	%		90.4	%		89.3	%		91.0	%		92.8	%
P&C expense ratio		29.2	%		31.1	%		30.0	%		23.1	%		29.2	%		30.1	%		30.6	%		28.2	%
P&C expense ratio excluding A&H		25.7	%		27.4	%		26.2	%		19.3	%		25.3	%		26.5	%		26.8	%		24.3	%
Large losses and other items (before tax)(1)
Reinstatement premiums (expensed) collected	$	—		$	—		$	(7	)	$	2		$	—		$	—		$	—		$	(5	)
Catastrophe losses	$	81		$	32		$	504		$	55		$	55		$	113		$	74		$	633
Favorable prior period development (PPD)(3)	$	(128	)	$	(70	)	$	(37	)	$	(236	)	$	(113	)	$	(198	)	$	(206	)	$	(479	)
Loss and loss expense ratio excluding catastrophe losses and PPD		60.0	%		58.3	%		61.4	%		73.4	%		61.2	%		59.3	%		60.4	%		64.6	%

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

(2) Net realized investment gains and losses related to unconsolidated entities.

(3) For Q2 2013 and YTD 2013, prior period favorable development is net of $2 million and $4 million, respectively, of profit-sharing commissions that are included in the expense ratio.

Consolidated Results Page 2

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

	June 30 2013			March 31 2013			December 31 2012
Assets
Fixed maturities available for sale, at fair value	$	47,016		$	47,947		$	47,306
Fixed maturities held to maturity, at amortized cost		6,576			6,867			7,270
Equity securities, at fair value		837			832			744
Short-term investments, at fair value		2,425			2,893			2,228
Other investments		2,836			2,820			2,716
Total investments		59,690			61,359			60,264
Cash		679			855			615
Securities lending collateral		1,662			1,786			1,791
Insurance and reinsurance balances receivable		5,022			4,154			4,147
Reinsurance recoverable on losses and loss expenses		11,442			11,530			12,078
Deferred policy acquisition costs		2,077			1,966			1,873
Value of business acquired		560			583			614
Prepaid reinsurance premiums		1,819			1,653			1,617
Goodwill and other intangible assets		5,395			4,909			4,975
Deferred tax assets		753			505			453
Investments in partially-owned insurance companies		452			449			454
Other assets		4,137			3,712			3,664
Total assets	$	93,688		$	93,461		$	92,545
Liabilities
Unpaid losses and loss expenses	$	37,343		$	37,082		$	37,946
Unearned premiums		7,851			7,019			6,864
Future policy benefits		4,502			4,465			4,470
Insurance and reinsurance balances payable		3,624			3,402			3,472
Securities lending payable		1,665			1,789			1,795
Accounts payable, accrued expenses, and other liabilities		5,391			5,744			5,397
Short-term debt		1,901			1,402			1,401
Long-term debt		3,807			4,307			3,360
Trust preferred securities		309			309			309
Total liabilities		66,393			65,519			65,014
Shareholders’ equity
Total shareholders’ equity, excl. AOCI		26,035			25,292			24,644
Accumulated other comprehensive income (AOCI)		1,260			2,650			2,887
Total shareholders’ equity		27,295			27,942			27,531
Total liabilities and shareholders’ equity	$	93,688		$	93,461		$	92,545
Book value per common share	$	80.26		$	82.17		$	80.90
% change over prior quarter		-2.3	%		1.6	%		1.9	%
Tangible book value per common share	$	64.40		$	67.74		$	66.28
% change over prior quarter		-4.9	%		2.2	%		2.5	%

Consol Bal Sheet Page 3

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

ACE Limited Consolidated

	2Q-13		% of Total Consolidated			2Q-12		% of Total Consolidated			% Change 2Q-13 vs. 2Q-12			YTD 2013		% of Total Consolidated			YTD 2012		% of Total Consolidated			% Change YTD-13 vs. YTD-12
Net premiums written
Property and all other	$	1,366		31	%	$	1,227		30	%		11.3	%	$	2,588		32	%	$	2,339		30	%		10.6	%
Agriculture		453		11	%		492		12	%		-8.0	%		566		7	%		611		8	%		-7.4	%
Casualty		1,412		32	%		1,286		31	%		9.8	%		2,720		33	%		2,500		33	%		8.8	%
Subtotal		3,231		74	%		3,005		73	%		7.5	%		5,874		72	%		5,450		71	%		7.8	%
Personal accident (A&H)(1)		925		21	%		883		21	%		4.6	%		1,839		22	%		1,765		23	%		4.2	%
Life		235		5	%		242		6	%		-2.6	%		476		6	%		487		6	%		-2.1	%
Total consolidated	$	4,391		100	%	$	4,130		100	%		6.3	%	$	8,189		100	%	$	7,702		100	%		6.3	%
Net premiums earned
Property and all other	$	1,158		28	%	$	1,013		27	%		14.3	%	$	2,225		29	%	$	1,983		28	%		12.2	%
Agriculture		351		9	%		384		10	%		-8.8	%		403		5	%		443		6	%		-9.1	%
Casualty		1,454		36	%		1,289		34	%		12.8	%		2,807		37	%		2,559		36	%		9.7	%
Subtotal		2,963		73	%		2,686		71	%		10.3	%		5,435		71	%		4,985		70	%		9.0	%
Personal accident (A&H)(1)		880		22	%		871		23	%		1.0	%		1,754		23	%		1,723		24	%		1.8	%
Life		224		5	%		226		6	%		-1.3	%		451		6	%		456		6	%		-1.2	%
Total consolidated	$	4,067		100	%	$	3,783		100	%		7.5	%	$	7,640		100	%	$	7,164		100	%		6.6	%
Operating income
Property, casualty, and all other	$	607		77	%	$	557		75	%		9.0	%	$	1,188		77	%	$	1,074		74	%		10.6	%
Agriculture		26		3	%		30		4	%		-14.5	%		33		2	%		55		4	%		-40.6	%
Personal accident (A&H)(1)		123		16	%		119		16	%		3.1	%		247		17	%		237		17	%		4.2	%
Life		34		4	%		37		5	%		-7.5	%		68		4	%		78		5	%		-13.4	%
Total consolidated	$	790		100	%	$	743		100	%		6.3	%	$	1,536		100	%	$	1,444		100	%		6.4	%

(1) For purposes of this schedule only, A&H results from our Combined North American and International businesses, normally included in the Life and Insurance-Overseas General segments, respectively, are included in the Personal Accident (A&H) line items above.

Line of Business Page 4

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

ACE Limited Consolidated Constant Dollar

	2Q-13		Constant $ 2Q-12 (2)		Constant $ % Change 2Q-13 vs. 2Q-12			YTD 2013		Constant $ YTD 2012 (2)		Constant $ % Change YTD-13 vs. YTD-12(2)
Net premiums written
Property, casualty, agriculture, and all other	$	3,231	$	2,969		8.8	%	$	5,874	$	5,410		8.6	%
Personal accident (A&H)(1)		925		870		6.2	%		1,839		1,757		4.6	%
Life		235		243		-2.8	%		476		488		-2.3	%
Total consolidated	$	4,391	$	4,082		7.6	%	$	8,189	$	7,655		7.0	%
Net premiums earned
Property, casualty, agriculture, and all other	$	2,963	$	2,656		11.6	%	$	5,435	$	4,944		9.9	%
Personal accident (A&H)(1)		880		862		2.2	%		1,754		1,717		2.2	%
Life		224		227		-1.7	%		451		458		-1.5	%
Total consolidated	$	4,067	$	3,745		8.6	%	$	7,640	$	7,119		7.3	%
Operating income
Property, casualty, agriculture, and all other	$	633	$	583		8.6	%	$	1,221	$	1,125		8.5	%
Personal accident (A&H)(1)		123		118		4.3	%		247		237		4.4	%
Life		34		36		-7.4	%		68		78		-13.5	%
Total consolidated	$	790	$	737		7.1	%	$	1,536	$	1,440		6.6	%

(1) For purposes of this schedule only, A&H results from our Combined North American and International businesses, normally included in the Life and Insurance-Overseas General segments, respectively, are included in the Personal Accident (A&H) line items above.

(2) Prior periods on a constant dollar basis.

Line of Business 2 Page 5

ACE Limited Insurance—North American (in millions of U.S. dollars, except ratios) (Unaudited)

Effective Q1 2013, the company’s Insurance—North American business is presented in two distinct reporting segments: Insurance—North American P&C (refer to page 7) and Insurance—North American Agriculture (refer to page 8). The below table shows the previous Insurance—North American business presentation and should be used for reference purposes only.

Insurance—North American

																YTD			YTD			Full Year
	2Q-13			1Q-13			4Q-12			3Q-12			2Q-12			2013			2012			2012
Gross premiums written	$	3,076		$	2,068		$	2,528		$	3,345		$	2,856		$	5,144		$	4,868		$	10,741
Net premiums written		1,982			1,397			1,518			2,537			1,860			3,379			3,153			7,208
Net premiums earned		1,779			1,390			1,608			2,472			1,652			3,169			2,939			7,019
Losses and loss expenses		1,243			910			1,504			2,110			1,163			2,153			2,012			5,626
Policy acquisition costs		162			147			142			160			157			309			284			586
Administrative expenses		162			130			153			148			153			292			300			601
Underwriting income (loss)		212			203			(191	)		54			179			415			343			206
Net investment income		257			257			283			263			271			514			545			1,091
Net realized gains (losses)		29			26			26			(1	)		18			55			17			42
Interest expense		3			(2	)		3			3			3			1			6			12
Other income (expense)
Net realized gains (losses) in other income (expense)		14			14			21			17			5			28			20			58
Other		(12	)		(7	)		(8	)		(12	)		(15	)		(19	)		(29	)		(49	)
Income tax expense (benefit)		99			96			(79	)		81			107			195			198			200
Net income		398			399			207			237			348			797			692			1,136
Net realized gains (losses)		29			26			26			(1	)		18			55			17			42
Net realized gains (losses) in other income (expense)		14			14			21			17			5			28			20			58
Tax expense on net realized gains (losses)		12			9			10			2			10			21			14			26
Operating income	$	367		$	368		$	170		$	223		$	335		$	735		$	669		$	1,062
Combined ratio
Loss and loss expense ratio		69.9	%		65.5	%		93.6	%		85.3	%		70.4	%		67.9	%		68.5	%		80.2	%
Policy acquisition cost ratio		9.1	%		10.5	%		8.8	%		6.5	%		9.5	%		9.7	%		9.7	%		8.3	%
Administrative expense ratio		9.1	%		9.4	%		9.5	%		6.0	%		9.3	%		9.3	%		10.1	%		8.6	%
Combined ratio		88.1	%		85.4	%		111.9	%		97.8	%		89.2	%		86.9	%		88.3	%		97.1	%
Combined ratio excluding catastrophe losses & PPD		87.7	%		87.6	%		90.0	%		99.5	%		89.8	%		87.7	%		90.2	%		93.4	%
Large losses and other items (before tax)
Reinstatement premiums (expensed) collected	$	(1	)	$	—		$	(8	)	$	—		$	—		$	(1	)	$	—		$	(8	)
Catastrophe losses	$	53		$	11		$	338		$	38		$	49		$	64		$	65		$	441
Unfavorable (favorable) prior period development (PPD)	$	(47	)	$	(43	)	$	7		$	(80	)	$	(59	)	$	(90	)	$	(119	)	$	(192	)
Loss and loss expense ratio excluding catastrophe losses and PPD		69.7	%		67.6	%		71.8	%		87.2	%		71.1	%		68.9	%		70.3	%		76.6	%
% Change versus prior year period
Net premiums written		6.6	%		8.0	%		-6.5	%		14.9	%		7.2	%		7.1	%		4.4	%		5.2	%
Net premiums earned		7.7	%		7.9	%		-3.2	%		7.5	%		3.0	%		7.8	%		-0.4	%		1.6	%
Other ratios
Net premiums written/gross premiums written		64	%		68	%		60	%		76	%		65	%		66	%		65	%		67	%

Insurance—North American Page 6

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

Insurance—North American P&C⁽¹⁾

																YTD			YTD			Full Year
	2Q-13			1Q-13			4Q-12			3Q-12			2Q-12			2013			2012			2012
Gross premiums written	$	2,327		$	1,819		$	2,236		$	1,921		$	2,134		$	4,146		$	3,963		$	8,120
Net premiums written		1,529			1,284			1,434			1,373			1,368			2,813			2,542			5,349
Net premiums earned		1,428			1,338			1,345			1,306			1,268			2,766			2,496			5,147
Losses and loss expenses		950			878			1,241			819			844			1,828			1,655			3,715
Policy acquisition costs		142			143			139			147			135			285			272			558
Administrative expenses		159			125			157			148			153			284			303			608
Underwriting income (loss)		177			192			(192	)		192			136			369			266			266
Net investment income		250			251			277			257			265			501			532			1,066
Net realized gains (losses)		28			26			26			(2	)		18			54			17			41
Interest expense		3			(2	)		3			3			3			1			6			12
Other income (expense)
Net realized gains (losses) in other income (expense)		14			14			21			17			5			28			20			58
Other		(4	)		1			—			(4	)		(7	)		(3	)		(13	)		(17	)
Income tax expense (benefit)		91			94			(79	)		129			96			185			179			229
Net income		371			392			208			328			318			763			637			1,173
Net realized gains (losses)		28			26			26			(2	)		18			54			17			41
Net realized gains (losses) in other income (expense)		14			14			21			17			5			28			20			58
Tax expense on net realized gains (losses)		12			9			10			2			10			21			14			26
Operating income	$	341		$	361		$	171		$	315		$	305		$	702		$	614		$	1,100
Combined ratio
Loss and loss expense ratio		66.6	%		65.6	%		92.2	%		62.7	%		66.6	%		66.1	%		66.3	%		72.2	%
Policy acquisition cost ratio		9.9	%		10.7	%		10.3	%		11.3	%		10.6	%		10.3	%		10.9	%		10.8	%
Administrative expense ratio		11.1	%		9.4	%		11.8	%		11.3	%		12.1	%		10.3	%		12.1	%		11.8	%
Combined ratio		87.6	%		85.7	%		114.3	%		85.3	%		89.3	%		86.7	%		89.3	%		94.8	%
Combined ratio excluding catastrophe losses and PPD		87.3	%		87.7	%		88.4	%		88.8	%		90.3	%		87.6	%		91.3	%		89.9	%
Large losses and other items (before tax)
Reinstatement premiums (expensed) collected	$	(1	)	$	—		$	(8	)	$	—		$	—		$	(1	)	$	—		$	(8	)
Catastrophe losses	$	50		$	11		$	335		$	38		$	45		$	61		$	59		$	430
Unfavorable (favorable) prior period development (PPD)(2)	$	(47	)	$	(40	)	$	8		$	(80	)	$	(57	)	$	(87	)	$	(108	)	$	(180	)
Loss and loss expense ratio excluding catastrophe losses and PPD		66.5	%		67.6	%		66.4	%		66.7	%		67.6	%		67.1	%		68.3	%		67.4	%
% Change versus prior year period
Net premiums written		11.8	%		9.3	%		6.0	%		20.3	%		10.3	%		10.7	%		5.6	%		9.2	%
Net premiums earned		12.7	%		8.9	%		9.0	%		7.1	%		1.6	%		10.8	%		-0.8	%		3.6	%
Other ratios
Net premiums written/gross premiums written		66	%		71	%		64	%		71	%		64	%		68	%		64	%		66	%

(1) Effective Q1 2013, the company’s Insurance—North American business is presented in two distinct reporting segments: Insurance—North American P&C and Insurance—North American Agriculture. Prior year amounts have been adjusted to conform to the new segment presentation.

(2) For Q2 2013 and YTD 2013, prior period favorable development is net of $2 million and $4 million, respectively, of profit-sharing commissions that are included in the expense ratio.

Insurance—North American P&C Page 7

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

Insurance—North American Agriculture⁽¹⁾

																YTD			YTD			Full Year
	2Q-13			1Q-13			4Q-12			3Q-12			2Q-12			2013			2012			2012
Gross premiums written	$	749		$	249		$	292		$	1,424		$	722		$	998		$	905		$	2,621
Net premiums written		453			113			84			1,164			492			566			611			1,859
Net premiums earned		351			52			263			1,166			384			403			443			1,872
Losses and loss expenses		293			32			263			1,291			319			325			357			1,911
Policy acquisition costs		20			4			3			13			22			24			12			28
Administrative expenses		3			5			(4	)		—			—			8			(3	)		(7	)
Underwriting income (loss)		35			11			1			(138	)		43			46			77			(60	)
Net investment income		7			6			6			6			6			13			13			25
Net realized gains (losses)		1			—			—			1			—			1			—			1
Interest expense		—			—			—			—			—			—			—			—
Other income (expense)
Net realized gains (losses) in other income (expense)		—			—			—			—			—			—			—			—
Other		(8	)		(8	)		(8	)		(8	)		(8	)		(16	)		(16	)		(32	)
Income tax expense (benefit)		8			2			—			(48	)		11			10			19			(29	)
Net income (loss)		27			7			(1	)		(91	)		30			34			55			(37	)
Net realized gains (losses)		1			—			—			1			—			1			—			1
Net realized gains (losses) in other income (expense)		—			—			—			—			—			—			—			—
Tax expense on net realized gains (losses)		—			—			—			—			—			—			—			—
Operating income	$	26		$	7		$	(1	)	$	(92	)	$	30		$	33		$	55		$	(38	)
Combined ratio
Loss and loss expense ratio		83.4	%		61.9	%		100.3	%		110.7	%		83.0	%		80.6	%		80.5	%		102.1	%
Policy acquisition cost ratio		5.6	%		7.5	%		1.2	%		1.1	%		5.9	%		5.8	%		2.8	%		1.5	%
Administrative expense ratio		0.9	%		9.9	%		-2.0	%		0.0	%		-0.2	%		2.2	%		-0.6	%		-0.4	%
Combined ratio		89.9	%		79.3	%		99.5	%		111.8	%		88.7	%		88.6	%		82.7	%		103.2	%
Large losses and other items (before tax)
Reinstatement premiums (expensed) collected	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—
Catastrophe losses	$	3		$	—		$	4		$	1		$	4		$	3		$	6		$	11
Favorable prior period development (PPD)	$	—		$	(3	)	$	(1	)	$	—		$	(2	)	$	(3	)	$	(11	)	$	(12	)
Loss and loss expense ratio excluding catastrophe losses and PPD		82.6	%		67.9	%		99.3	%		110.6	%		82.4	%		80.7	%		81.6	%		102.2	%
% Change versus prior year period
Net premiums written		-8.0	%		-5.1	%		-69.0	%		9.2	%		-0.5	%		-7.4	%		-0.2	%		-4.7	%
Net premiums earned		-8.8	%		-11.1	%		-38.6	%		7.9	%		7.8	%		-9.1	%		2.1	%		-3.6	%
Other ratios
Net premiums written/gross premiums written		60	%		45	%		29	%		82	%		68	%		57	%		68	%		71	%

(1) Effective Q1 2013, the company’s Insurance—North American business is presented in two distinct reporting segments: Insurance—North American P&C and Insurance—North American Agriculture. Prior year amounts have been adjusted to conform to the new segment presentation.

Insurance—North American Agriculture Page 8

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

Insurance—Overseas General

																YTD			YTD			Full Year
	2Q-13			1Q-13			4Q-12			3Q-12			2Q-12			2013			2012			2012
Gross premiums written	$	2,097		$	2,073		$	1,925		$	1,841		$	1,952		$	4,170		$	3,936		$	7,702
Net premiums written		1,630			1,620			1,476			1,384			1,475			3,250			3,003			5,863
Net premiums earned		1,563			1,459			1,497			1,432			1,420			3,022			2,811			5,740
Losses and loss expenses		768			747			832			622			703			1,515			1,408			2,862
Policy acquisition costs		360			339			357			329			332			699			667			1,353
Administrative expenses		251			236			239			234			233			487			462			935
Underwriting income		184			137			69			247			152			321			274			590
Net investment income		136			132			135			127			128			268			259			521
Net realized gains (losses)		8			34			44			13			26			42			46			103
Interest expense		2			1			1			2			1			3			2			5
Other income (expense)
Net realized gains (losses) in other income (expense)		(3	)		6			1			2			(3	)		3			—			3
Other		(14	)		(5	)		(1	)		1			(3	)		(19	)		(6	)		(6	)
Income tax expense (benefit)		50			46			(33	)		77			51			96			89			133
Net income		259			257			280			311			248			516			482			1,073
Net realized gains (losses)		8			34			44			13			26			42			46			103
Net realized gains (losses) in other income (expense)		(3	)		6			1			2			(3	)		3			—			3
Tax expense on net realized gains (losses)		2			22			11			6			7			24			10			27
Operating income	$	256		$	239		$	246		$	302		$	232		$	495		$	446		$	994
Combined ratio
Loss and loss expense ratio		49.1	%		51.2	%		55.5	%		43.4	%		49.6	%		50.1	%		50.1	%		49.8	%
Policy acquisition cost ratio		23.0	%		23.2	%		23.8	%		23.1	%		23.4	%		23.1	%		23.7	%		23.6	%
Administrative expense ratio		16.1	%		16.2	%		16.1	%		16.2	%		16.3	%		16.2	%		16.5	%		16.3	%
Combined ratio		88.2	%		90.6	%		95.4	%		82.7	%		89.3	%		89.4	%		90.3	%		89.7	%
Large losses and other items (before tax)
Reinstatement premiums (expensed) collected	$	—		$	—		$	(8	)	$	—		$	—		$	—		$	—		$	(8	)
Catastrophe losses	$	17		$	21		$	65		$	4		$	5		$	38		$	7		$	76
Favorable prior period development (PPD)	$	(52	)	$	(22	)	$	(30	)	$	(135	)	$	(39	)	$	(74	)	$	(61	)	$	(226	)
Loss and loss expense ratio excluding catastrophe losses and PPD		51.3	%		51.3	%		52.9	%		52.6	%		51.9	%		51.3	%		52.0	%		52.4	%
% Change versus prior year period
Net premiums written as reported		10.5	%		6.0	%		7.1	%		-1.0	%		2.2	%		8.2	%		5.2	%		4.2	%
Net premiums earned as reported		10.1	%		4.9	%		3.2	%		-2.6	%		0.3	%		7.5	%		4.4	%		2.2	%
Net premiums written constant $		13.7	%														9.9	%
Net premiums earned constant $		13.0	%														9.3	%
Other ratios
Net premiums written/gross premiums written		78	%		78	%		77	%		75	%		76	%		78	%		76	%		76	%

Insurance—Overseas General Page 9

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

Global Reinsurance

																YTD			YTD			Full Year
	2Q-13			1Q-13			4Q-12			3Q-12			2Q-12			2013			2012			2012
Gross premiums written	$	345		$	294		$	149		$	310		$	332		$	639		$	611		$	1,070
Net premiums written		292			279			146			307			309			571			572			1,025
Net premiums earned		245			247			254			281			237			492			467			1,002
Losses and loss expenses		93			106			198			151			102			199			204			553
Policy acquisition costs		48			48			47			40			42			96			85			172
Administrative expenses		12			12			13			13			13			24			25			51
Underwriting income (loss)		92			81			(4	)		77			80			173			153			226
Net investment income		71			72			77			72			70			143			141			290
Net realized gains (losses)		31			20			12			(2	)		(17	)		51			(4	)		6
Interest expense		1			1			1			1			1			2			2			4
Other income (expense)
Net realized gains (losses) in other income (expense)		(3	)		8			8			4			(3	)		5			2			14
Other		1			—			—			1			—			1			—			1
Income tax expense (benefit)		7			8			(2	)		11			—			15			6			15
Net income		184			172			94			140			129			356			284			518
Net realized gains (losses)		31			20			12			(2	)		(17	)		51			(4	)		6
Net realized gains (losses) in other income (expense)		(3	)		8			8			4			(3	)		5			2			14
Tax expense (benefit) on net realized gains (losses)		—			—			—			1			—			—			—			1
Operating income	$	156		$	144		$	74		$	139		$	149		$	300		$	286		$	499
Combined ratio
Loss and loss expense ratio		37.7	%		43.0	%		78.2	%		53.9	%		42.5	%		40.3	%		43.5	%		55.2	%
Policy acquisition cost ratio		19.9	%		19.3	%		18.3	%		14.1	%		17.8	%		19.6	%		18.3	%		17.1	%
Administrative expense ratio		4.6	%		5.0	%		5.2	%		4.7	%		5.8	%		4.9	%		5.3	%		5.2	%
Combined ratio		62.2	%		67.3	%		101.7	%		72.7	%		66.1	%		64.8	%		67.1	%		77.5	%
Large losses and other items (before tax)
Reinstatement premiums (expensed) collected	$	1		$	—		$	9		$	2		$	—		$	1		$	—		$	11
Catastrophe losses	$	11		$	—		$	101		$	13		$	1		$	11		$	2		$	116
Favorable prior period development (PPD)	$	(29	)	$	(5	)	$	(14	)	$	(21	)	$	(15	)	$	(34	)	$	(26	)	$	(61	)
Loss and loss expense ratio excluding catastrophe losses and PPD		45.3	%		44.8	%		45.6	%		57.7	%		48.3	%		45.1	%		48.5	%		50.4	%
% Change versus prior year period
Net premiums written as reported		-5.3	%		6.1	%		12.0	%		22.2	%		9.4	%		-0.1	%		-4.2	%		4.7	%
Net premiums earned as reported		3.6	%		7.3	%		2.3	%		16.8	%		-6.5	%		5.4	%		-9.0	%		0.0	%
Net premiums written constant $		-4.2	%														0.0	%
Net premiums earned constant $		4.3	%														5.6	%
Other ratios
Net premiums written/gross premiums written		85	%		95	%		99	%		99	%		93	%		89	%		93	%		96	%

Global Reinsurance Page 10

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

Life

																YTD			YTD			Full Year
	2Q-13			1Q-13			4Q-12			3Q-12			2Q-12			2013			2012			2012
Gross premiums written	$	512		$	528		$	544		$	511		$	513		$	1,040		$	1,025		$	2,080
Net premiums written		487			502			517			488			486			989			974			1,979
Net premiums earned		480			477			489			480			474			957			947			1,916
Losses and loss expenses		145			157			148			164			151			302			299			611
Policy benefits(1)		110			131			142			130			102			241			249			521
(Gains) losses from fair value changes in separate account assets(1)		11			(4	)		(11	)		(14	)		14			7			(4	)		(29	)
Policy acquisition costs		95			80			90			80			88			175			164			334
Administrative expenses		86			85			91			81			78			171			156			328
Net investment income		63			63			65			63			62			126			123			251
Life underwriting income(2)		96			91			94			102			103			187			206			402
Net realized gains (losses):
Mark-to-market on guaranteed living benefits derivative (net of related hedges)		33			78			138			(64	)		(397	)		111			(200	)		(126	)
Foreign exchange gains (losses) and all other		3			49			51			(7	)		(24	)		52			10			54
Interest expense		4			4			3			3			3			8			6			12
Other income (expense)(1)
Net realized gains (losses) in other income (expense)		4			5			(7	)		(3	)		2			9			(3	)		(13	)
Other		(7	)		(5	)		(4	)		3			(7	)		(12	)		(11	)		(12	)
Income tax expense		10			13			14			14			19			23			30			58
Net income (loss)		115			201			255			14			(345	)		316			(34	)		235
Net realized gains (losses)		36			127			189			(71	)		(421	)		163			(190	)		(72	)
Net realized gains (losses) in other income (expense)		4			5			(7	)		(3	)		2			9			(3	)		(13	)
Tax expense (benefit) on net realized gains (losses)		1			1			1			(1	)		5			2			4			4
Operating income	$	76		$	70		$	74		$	87		$	79		$	146		$	163		$	324
% Change versus prior year period
Net premiums written as reported		0.2	%		3.0	%		3.9	%		0.0	%		-1.2	%		1.6	%		4.8	%		3.4	%
Net premiums earned as reported		0.9	%		1.1	%		4.2	%		0.0	%		-1.9	%		1.0	%		4.2	%		3.1	%
Net premiums written constant $(3)		0.4	%														1.5	%
Net premiums earned constant $		1.0	%														0.9	%

(1) (Gains) losses from fair value changes in 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 fair value changes in separate account assets.

(3) Net premiums written and deposits breakdown:

					Constant $							Constant $
					% Change							% Change
			Constant $		2Q-13 vs.					Constant $		YTD-13 vs.
	2Q-13		2Q-12		2Q-12			YTD-13		YTD-12		YTD-12
Life excluding life reinsurance(4)	$	637	$	543		17.7	%	$	1,267	$	1,077		17.7	%
Life reinsurance including variable annuity		72		76		-6.0	%		146		161		-9.4	%
Total Life	$	709	$	619		14.8	%	$	1,413	$	1,238		14.2	%

(4) Includes deposits collected on universal life and investment contracts of $222 million for Q2 2013 and $133 million for Q2 2012 on a constant-dollar basis. For the year, includes deposits of $424 million for 2013 and $263 million for 2012 on a constant-dollar basis. Consistent with GAAP, premiums collected on universal life and investment contracts are considered deposits and excluded from revenues.

Life Page 11

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

	Unpaid Losses									Net Paid to
	Gross			Ceded			Net			Incurred Ratio
Balance at December 31, 2011	$	37,477		$	11,602		$	25,875
Losses and loss expenses incurred		2,361			557			1,804
Losses and loss expenses paid		(2,876	)		(931	)		(1,945	)		108	%
Other (incl. foreign exch. revaluation)		285			90			195
Balance at March 31, 2012	$	37,247		$	11,318		$	25,929
Losses and loss expenses incurred		2,851			732			2,119
Losses and loss expenses paid		(2,916	)		(893	)		(2,023	)		95	%
Other (incl. foreign exch. revaluation)		(332	)		(171	)		(161	)
Balance at June 30, 2012	$	36,850		$	10,986		$	25,864
Losses and loss expenses incurred		4,073			1,026			3,047
Losses and loss expenses paid		(3,078	)		(1,013	)		(2,065	)		68	%
Other (incl. foreign exch. revaluation)		355			163			192
Balance at September 30, 2012	$	38,200		$	11,162		$	27,038
Losses and loss expenses incurred		4,642			1,959			2,683
Losses and loss expenses paid		(4,913	)		(1,727	)		(3,186	)		119	%
Other (incl. foreign exch. revaluation)		17			5			12
Balance at December 31, 2012	$	37,946		$	11,399		$	26,547
Losses and loss expenses incurred		2,483			557			1,926
Losses and loss expenses paid		(2,987	)		(932	)		(2,055	)		107	%
Other (incl. foreign exch. revaluation)		(360	)		(106	)		(254	)
Balance at March 31, 2013	$	37,082		$	10,918		$	26,164
Losses and loss expenses incurred		3,007			757			2,250
Losses and loss expenses paid		(2,797	)		(941	)		(1,856	)		83	%
Other (incl. foreign exch. revaluation)		51			4			47
Balance at June 30, 2013	$	37,343		$	10,738		$	26,605
Add net recoverable on paid losses		—			704			(704	)
Balance including net recoverable on paid losses	$	37,343		$	11,442		$	25,901

Loss Reserve Rollforward Page 12

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

Net Reinsurance Recoverable by Division

	June 30 2013			March 31 2013			December 31 2012
Reinsurance recoverable on paid losses and loss expenses
Active operations	$	450		$	409		$	464
Brandywine and Other Run-off		326			284			303
Total	$	776		$	693		$	767
Reinsurance recoverable on unpaid losses and loss expenses
Active operations	$	9,720		$	9,786		$	10,199
Brandywine and Other Run-off		1,374			1,484			1,551
Total	$	11,094		$	11,270		$	11,750
Gross reinsurance recoverable
Active operations	$	10,170		$	10,195		$	10,663
Brandywine and Other Run-off		1,700			1,768			1,854
Total	$	11,870		$	11,963		$	12,517
Provision for uncollectible reinsurance(1)
Active operations	$	(274	)	$	(274	)	$	(277	)
Brandywine and Other Run-off		(154	)		(159	)		(162	)
Total	$	(428	)	$	(433	)	$	(439	)
Net reinsurance recoverable
Active operations	$	9,896		$	9,921		$	10,386
Brandywine and Other Run-off		1,546			1,609			1,692
Total	$	11,442		$	11,530		$	12,078

(1) The provision for uncollectible reinsurance is based on a default analysis applied to gross reinsurance recoverables, net of approximately $2.4 billion of collateral.

Reinsurance Recoverable Page 13

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

	June 30 2013					March 31 2013					December 31 2012
Market Value
Fixed maturities available for sale	$	47,016				$	47,947				$	47,306
Fixed maturities held to maturity		6,762					7,213					7,633
Short-term investments		2,425					2,893					2,228
Total	$	56,203				$	58,053				$	57,167
Asset Allocation by Market Value
Treasury	$	2,578		5	%	$	2,750		5	%	$	2,794		5	%
Agency		1,586		3	%		2,090		4	%		2,024		4	%
Corporate and asset-backed		18,972		34	%		19,123		33	%		18,983		33	%
Mortgage-backed		11,445		20	%		12,064		21	%		12,589		22	%
Municipal(1)		4,451		8	%		4,532		7	%		3,872		7	%
Non-U.S.		14,746		26	%		14,601		25	%		14,677		25	%
Short-term investments		2,425		4	%		2,893		5	%		2,228		4	%
Total	$	56,203		100	%	$	58,053		100	%	$	57,167		100	%
Note: Insured municipal bonds represent $717 million, or 16% of our municipal bond holdings.
Credit Quality by Market Value
AAA	$	9,408		17	%	$	9,948		17	%	$	9,285		16	%
AA		20,557		36	%		22,036		38	%		22,014		39	%
A		11,105		20	%		11,150		19	%		10,760		19	%
BBB		6,765		12	%		6,596		11	%		6,591		12	%
BB		3,940		7	%		4,010		7	%		4,146		7	%
B		4,056		7	%		3,956		7	%		3,846		6	%
Other		372		1	%		357		1	%		525		1	%
Total	$	56,203		100	%	$	58,053		100	%	$	57,167		100	%
Cost/Amortized Cost
Fixed maturities available for sale	$	45,988				$	45,470				$	44,666
Fixed maturities held to maturity		6,576					6,867					7,270
Short-term investments		2,425					2,893					2,228
Subtotal		54,989					55,230					54,164
Equity securities		843					781					707
Other investments		2,543					2,544					2,465
Total	$	58,375				$	58,555				$	57,336
Avg. duration of fixed maturities		4.1 years					4.0 years					3.9 years
Avg. market yield of fixed maturities(2)		2.9	%				2.3	%				2.3	%
Avg. credit quality(3)		A/Aa					A/Aa					A/Aa
Avg. yield on invested assets (4)		3.7	%				3.7	%				3.8	%

(1) The rating of the municipal portfolio is AA with 5% 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, including education and utilities (water, power, and 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, excluding non-recurring items, divided by average cost of fixed maturities and other investments, and average market value of equity securities. Net investment income includes private equity distributions of $18 million and $24 million for Q2 2013 and Q1 2013, respectively.

Investments Page 14

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 June 30, 2013
Agency residential mortgage-backed (RMBS)	$	—	$	9,671	$	—	$	—	$	—	$	9,671
Non-agency RMBS		68		11		30		23		198		330
Commercial mortgage-backed		1,414		13		10		7		—		1,444
Total mortgage-backed securities at market value	$	1,482	$	9,695	$	40	$	30	$	198	$	11,445

	S&P Credit Rating
	AAA		AA		A		BBB		BB and below		Total
Amortized Cost at June 30, 2013
Agency RMBS	$	—	$	9,570	$	—	$	—	$	—	$	9,570
Non-agency RMBS		67		10		29		23		210		339
Commercial mortgage-backed		1,399		11		9		6		—		1,425
Total mortgage-backed securities at amortized cost	$	1,466	$	9,591	$	38	$	29	$	210	$	11,334

Mortgage-backed securities total $11.4 billion, are rated predominantly AA and comprise 20% of the fixed income portfolio. This compares to a 31% 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 $9.7 billion and represent 97% of the residential mortgage-backed portfolio.

Commercial mortgage-backed securities of $1.4 billion are rated predominantly AAA, broadly diversified with over 13,000 loans and seasoned with 29% of the portfolio issued before 2006 and 52% of the portfolio issued after 2009. The average loan-to-value ratio is approximately 64% with a debt service coverage ratio in excess of 1.9 and weighted average subordinated collateral of 31%. The cumulative foreclosure rate would have to rise to 44% before principal is impaired. The foreclosure rate of ACE’s commercial mortgage-backed securities portfolio at June 30, 2013 was 1.9%.

Investments 2 Page 15

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

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

Market Value at June 30, 2013

	S&P Credit Rating
	Investment Grade
	AAA		AA		A		BBB		Total
Asset-backed	$	552	$	60	$	1	$	—	$	613
Banks		—		—		2,281		335		2,616
Basic Materials		—		—		99		325		424
Communications		—		—		764		558		1,322
Consumer, Cyclical		—		92		262		249		603
Consumer, Non-Cyclical		56		490		891		692		2,129
Diversified Financial Services		—		46		200		113		359
Energy		34		37		202		663		936
Industrial		—		329		317		256		902
Utilities		—		12		560		468		1,040
All Others		47		163		479		527		1,216
Total	$	689	$	1,229	$	6,056	$	4,186	$	12,160

U.S. Investment Grade Corporate Fixed Income Portfolio

The average credit quality of ACE’s U.S. 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 June 30, 2013

	S&P Credit Rating
	Below Investment Grade
	BB		B		CCC		Total
Asset-backed	$	—	$	4	$	18	$	22
Banks		1		5		—		6
Basic Materials		165		164		6		335
Communications		467		518		27		1,012
Consumer, Cyclical		519		617		34		1,170
Consumer, Non-Cyclical		502		927		31		1,460
Diversified Financial Services		70		107		—		177
Energy		647		336		15		998
Industrial		364		402		31		797
Utilities		274		42		—		316
All Others		190		327		2		519
Total	$	3,199	$	3,449	$	164	$	6,812

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 830 issuers with our largest current issuer exposure at $97 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 3 Page 16

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

Non-U.S. Fixed Income Portfolio

June 30, 2013

	Market Value by S&P Credit Rating												Amortized Cost
	AAA		AA		A		BBB		BB and below		Total
United Kingdom	$	1,067	$	—	$	—	$	—	$	—	$	1,067	$	1,067
Canada		843		—		—		—		—		843		835
Republic of Korea		—		530		58		—		—		588		558
United Mexican States		—		—		395		65		3		463		462
France		—		391		—		—		—		391		388
Germany		385		—		—		—		—		385		383
Japan		—		309		—		—		—		309		309
Kingdom of Thailand		—		—		181		51		—		232		233
Federative Republic of Brazil		—		—		4		216		—		220		222
Province of Ontario		—		215		—		—		—		215		210
Province of Quebec		—		—		179		—		—		179		176
Commonwealth of Australia		177		1		—		—		—		178		172
State of Queensland		51		88		—		—		—		139		133
Federation of Malaysia		—		—		125		—		—		125		125
Swiss Confederation		118		—		—		—		—		118		115
People’s Republic of China		65		48		1		—		—		114		112
Taiwan		—		83		2		—		—		85		84
Socialist Republic of Vietnam		—		—		—		—		83		83		78
State of New South Wales		72		—		—		—		—		72		68
Russian Federation		—		—		—		59		—		59		60
State of Victoria		50		—		—		—		—		50		48
Republic of Indonesia		—		—		—		—		48		48		50
Republic of Colombia		—		—		—		47		—		47		48
Arab Republic of Egypt		—		22		—		—		19		41		39
Dominion of New Zealand		—		38		1		—		—		39		39
Other Non-U.S. Government		268		212		99		94		86		759		751
Non-U.S. Government Securities	$	3,096	$	1,937	$	1,045	$	532	$	239	$	6,849	$	6,765
Eurozone Non-U.S. Corporate(1)		482		354		453		521		460		2,270		2,198
Other Non-U.S. Corporate		664		590		2,331		1,447		595		5,627		5,461
	$	4,242	$	2,881	$	3,829	$	2,500	$	1,294	$	14,746	$	14,424

(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.

73% of ACE’s non-U.S. fixed income portfolios are denominated in G7 currencies.

Average credit quality of non-U.S. fixed income securities is high at A 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.

Investments 4 Page 17

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

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

June 30, 2013

	Market Value by Industry										Amortized Cost
	Bank		Financial		Industrial		Utility		Total
Netherlands	$	195	$	123	$	332	$	160	$	810	$	780
France		116		35		183		154		488		476
Luxembourg		9		5		255		78		347		339
Germany		204		—		62		5		271		263
Euro Supranational		131		—		—		—		131		127
Ireland		12		1		100		12		125		120
Belgium		10		—		36		—		46		45
Finland		10		—		10		3		23		22
Austria		19		—		3		—		22		20
Spain		6		—		—		—		6		6
Portugal		—		—		1		—		1		—
Eurozone Non-U.S. Corporate Securities	$	712	$	164	$	982	$	412	$	2,270	$	2,198

Note: ACE has no investments in Greece and Italy.

Top 10 Exposures—Eurozone Banks (Excluding United Kingdom)

June 30, 2013	Market Value		Amortized Cost		Rating
KFW	$	135	$	131	AAA
Rabobank Nederland NV		109		104	AA-
European Investment Bank		103		100	AAA
Bank Nederlandse Gemeenten		40		39	AAA
Credit Agricole Groupe		34		34	A
BNP Paribas SA		32		31	A+
Erste Abwicklungsanstalt		24		23	AA-
Groupe BPCE		24		23	A
Societe Generale SA		18		17	A
EUROFIMA		16		15	AA+

Top 10 Exposures—Eurozone Corporate (Excluding United Kingdom)

June 30, 2013	Market Value		Amortized Cost		Rating
Intelsat SA	$	90	$	88	B
Electricite de France SA		89		87	A+
Royal Dutch Shell PLC		71		69	AA
ING Groep NV		71		68	A
Deutsche Telekom AG		64		59	BBB+
LyondellBasell Industries NV		56		51	BBB-
France Telecom SA		40		39	BBB+
NIBC Holding NV		33		32	BBB-
Porsche Automobil Holding SE		32		32	A-
General Electric Co		31		29	AA+

Investments 5 Page 18

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

Investment portfolio

Top 25 Exposures—Fixed Maturity Investments

	June 30, 2013	Market Value		Rating
1	JP Morgan Chase & Co	$	479	A
2	Goldman Sachs Group Inc		430	A-
3	General Electric Co		388	AA+
4	Citigroup Inc		303	A-
5	Bank of America Corp		274	A-
6	Morgan Stanley		269	A-
7	Verizon Communications Inc		246	A-
8	Wells Fargo & Co		236	A+
9	AT&T INC		212	A-
10	HSBC Holdings Plc		207	A+
11	Comcast Corp		185	A-
12	Mondelez International Inc		154	BBB
13	Anheuser-Busch InBev NV		144	A
14	BP Plc		132	A
15	Pfizer Inc		123	AA
16	Time Warner Cable Inc		120	BBB
17	Duke Energy Corp		116	BBB+
18	Barclays Plc		114	A
19	American Express Co		111	BBB+
20	Enterprise Products Partners LP		110	BBB+
21	Rabobank Nederland NV		109	AA-
22	Philip Morris International Inc		108	A
23	Royal Bank of Scotland Group Plc		106	A-
24	UBS AG		103	A
25	Twenty-First Century Fox Inc		98	BBB+

Investments 6 Page 19

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

	Three months ended June 30, 2013									Six months ended June 30, 2013
	Net Realized			Net Unrealized						Net Realized		Net Unrealized
	Gains			Gains			Net			Gains		Gains			Net
	(Losses) (1)			(Losses)			Impact			(Losses)(1)		(Losses)			Impact
Fixed maturities	$	31		$	(1,466	)	$	(1,435	)	$	67	$	(1,657	)	$	(1,590	)
Fixed income derivatives		40			—			40			58		—			58
Total fixed maturities		71			(1,466	)		(1,395	)		125		(1,657	)		(1,532	)
Public equity		7			(57	)		(50	)		6		(43	)		(37	)
Private equity		8			15			23			36		40			76
Total equity		15			(42	)		(27	)		42		(3	)		39
Mark-to-market gains from derivative transactions(2)		32			—			32			110		—			110
Foreign exchange gains(2)		(5	)		—			(5	)		71		—			71
Other		—	��		—			—			—		1			1
Partially-owned entities(3)		3			—			3			7		—			7
Income tax expense (benefit)		15			(288	)		(273	)		47		(344	)		(297	)
Net gains (losses)	$	101		$	(1,220	)	$	(1,119	)	$	308	$	(1,315	)	$	(1,007	)

(1) Other-than-temporary impairments for the quarter includes $6 million for fixed maturities and $1 million for private equity. Year to date other-than-temporary impairments includes $7 million of fixed maturities, $2 million for private equity, and $1 million for public equity.

(2) Includes $33 million of realized gains from variable annuity reinsurance for the quarter which comprises $101 million in mark-to-market gains from derivative transactions, net of $68 million of losses on applicable hedges. For the year, the $111 million of realized gains from variable annuity reinsurance comprises $429 million in mark-to-market gains from derivative transactions, net of $318 million losses on applicable hedges. The variable annuity reinsurance foreign exchange gains for the year were $41 million.

(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 June 30, 2012									Six months ended June 30, 2012
	Net Realized			Net Unrealized						Net Realized			Net Unrealized
	Gains			Gains			Net			Gains			Gains		Net
	(Losses) (4)			(Losses)			Impact			(Losses)(4)			(Losses)		Impact
Fixed maturities	$	68		$	251		$	319		$	102		$	494	$	596
Fixed income derivatives		(49	)		—			(49	)		(7	)		—		(7	)
Total fixed maturities		19			251			270			95			494		589
Public equity		(5	)		(9	)		(14	)		(4	)		29		25
Private equity		(6	)		16			10			17			23		40
Total equity		(11	)		7			(4	)		13			52		65
Mark-to-market gains from derivative transactions(5)		(396	)		—			(396	)		(204	)		—		(204	)
Foreign exchange losses(5)		(9	)		—			(9	)		(14	)		—		(14	)
Other		3			(3	)		—			1			1		2
Partially-owned entities(6)		1			—			1			(6	)		—		(6	)
Income tax expense		22			47			69			28			96		124
Net gains (losses)	$	(415	)	$	208		$	(207	)	$	(143	)	$	451	$	308

(4) Other-than-temporary impairments for the quarter includes $1 million for fixed maturities, $5 million for private equity, and $4 million for public equity. Year to date other-than-temporary impairments includes $8 million of fixed maturities, $7 million for private equity, and $5 million for public equity.

(5) Includes $397 million of realized losses from variable annuity reinsurance for the quarter which comprises $467 million in mark-to-market losses from derivatives transactions, net of $70 million of gains on applicable hedges. The variable annuity reinsurance foreign exchange losses for the quarter were $29 million. For the year, the $200 million of realized losses from variable annuity reinsurance comprises $39 million in mark-to-market losses from derivative transactions, and $161 million losses on applicable hedges. The variable annuity reinsurance foreign exchange gains for the year were $6 million.

(6) 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).

Investment Gains (Losses) Page 20

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

	June 30			March 31			December 31			December 31
	2013			2013			2012			2011
Total short-term debt(1) (2)	$	1,901		$	1,402		$	1,401		$	1,251
Total long-term debt		3,807			4,307			3,360			3,360
Total debt	$	5,708		$	5,709		$	4,761		$	4,611
Total trust preferred securities	$	309		$	309		$	309		$	309
Total shareholders’ equity	$	27,295		$	27,942		$	27,531		$	24,332
Total capitalization	$	33,312		$	33,960		$	32,601		$	29,252
Tangible capital(3)	$	27,917		$	29,051		$	27,626		$	24,453
Leverage ratios
Debt/ total capitalization		17.1	%		16.8	%		14.6	%		15.8	%
Debt plus trust preferred securities/ total capitalization		18.1	%		17.7	%		15.6	%		16.8	%
Debt/ tangible capital		20.4	%		19.7	%		17.2	%		18.9	%
Debt plus trust preferred securities/ tangible capital		21.6	%		20.7	%		18.4	%		20.1	%

Note: As of June 30, 2013, there was $1.3 billion usage of credit facilities on a total commitment of $1.9 billion.

(1) Repurchase agreements in the amount of $851 million matured during the quarter, and there were new repurchase agreements in the amount of $850 million.

(2) In June 2013, we reclassified $500 million of 5.875 percent senior notes, due to mature in less than one year (June 2014), from Long-term debt to Short-term debt.

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

Capital Structure Page 21

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
	2013			2012			2013			2012
Numerator
Operating income to common shares	$	790		$	743		$	1,536		$	1,444
Net realized gains (losses), net of income tax		101			(415	)		308			(143	)
Net income	$	891		$	328		$	1,844		$	1,301
Rollforward of Common Shares Outstanding
Shares—beginning of period		340,045,256			338,653,382			340,321,534			336,927,276
Repurchase of shares		(654,776	)		—			(2,463,076	)		(100,000	)
Shares issued, excluding option exercises		117,445			87,454			1,064,981			1,124,163
Issued for option exercises		578,344			320,049			1,162,830			1,109,446
Shares—end of period		340,086,269			339,060,885			340,086,269			339,060,885
Denominator
Weighted average shares outstanding		341,047,290			339,766,067			340,913,450			339,164,449
Effect of other dilutive securities		3,053,975			2,907,971			3,120,263			3,006,950
Adj. wtd. avg. shares outstanding and assumed conversions		344,101,265			342,674,038			344,033,713			342,171,399
Basic earnings per share
Operating income	$	2.31		$	2.18		$	4.50		$	4.25
Net realized gains (losses), net of income tax		0.30			(1.22	)		0.91			(0.42	)
Net income	$	2.61		$	0.96		$	5.41		$	3.83
Diluted earnings per share
Operating income	$	2.29		$	2.17		$	4.46		$	4.22
Net realized gains (losses), net of income tax		0.30			(1.21	)		0.90			(0.42	)
Net income	$	2.59		$	0.96		$	5.36		$	3.80

Earnings per share Page 22

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 and financial condition. However, they should not be viewed as a substitute for measures determined in accordance with generally accepted accounting principles (GAAP).

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 fair value changes in separate account assets that do not qualify for separate account reporting under GAAP.

We provide financial measures such as gross written premiums, net premiums written, net premiums earned, and operating income on a constant-dollar basis. We believe it is useful to evaluate the trends in these measures exclusive of the effect of fluctuations in exchange rates between the U.S. dollar and the currencies in which our international business is transacted, as these exchange rates could fluctuate significantly between periods and distort the analysis of trends. The impact is determined by assuming constant foreign exchange rates between periods by translating prior period results using the same local currency exchange rates as the comparable current period.

P&C expense ratio excluding A&H, excludes the impact of our A&H business from our consolidated expense ratio. The expense ratio for the A&H business is typically higher than our traditional P&C business, and we believe that this measure provides better comparison to our peer companies that may not have a significant A&H block of business.

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.

Combined ratio excluding catastrophe losses and PPD is a non-GAAP financial measure. The ratio numerator includes losses and loss expenses, policy acquisition costs, and administrative expenses adjusted to exclude catastrophe losses and PPD. The ratio denominator includes net premiums earned adjusted to exclude the amount of reinstatement premiums (expensed) collected and net earned premium adjustments on loss sensitive policies. 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.

Life net premiums written and deposits collected, excluding life reinsurance, is a non-GAAP financial measure. Deposits collected on universal life and investment contracts (life deposits) are properly not reflected as revenues in our consolidated statements of operations in accordance with GAAP. However, we include life deposits in presenting growth in our Life business because new life deposits are an important component of production and key to our efforts to grow our business. However, we exclude results associated with life reinsurance as there is no new life reinsurance business currently being written.

Operating return on equity (ROE) or ROE calculated using income excluding net realized gains (losses) is an annualized non-GAAP financial measure. The ROE numerator includes income adjusted to exclude net realized gains (losses), net of tax. The ROE denominator includes the average shareholders’ equity for the period adjusted to exclude unrealized gains (losses) on investments, net of tax. To annualize a quarterly rate, multiply by four. Operating ROE 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.

Operating income or Income excluding net realized gains (losses), net of tax, is a common performance measurement for insurance companies and non-GAAP financial 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. Operating income or Income excluding net realized gains (losses) should not be viewed as a substitute for net income determined in accordance with GAAP.

Operating effective tax rate is a non-GAAP financial measure. The numerator excludes tax on net realized gains (losses). The denominator excludes net realized gains (losses), before tax. We exclude net realized gains (losses) and the related tax impact because these amounts are heavily influenced by, and fluctuate in part according to, the availability of market opportunities. Operating effective tax rate should not be viewed as a substitute for effective tax rate determined in accordance with GAAP.

Tangible book value per common share is shareholders’ equity less goodwill and other intangible assets divided by the shares outstanding. We believe that goodwill and other intangible assets are not indicative of our underlying insurance results or trends and make book value comparisons to less acquisitive peer companies less meaningful. A reconciliation of tangible book value per share is provided on page 25. Tangible book value per common share excluding 2013 acquisitions is shareholders’ equity less goodwill and other intangible assets divided by the shares outstanding. The numerator adds back the goodwill and other intangible assets related to the 2013 acquisitions of Fianzas Monterrey and ABA Seguros in order to control for the distortive effect of acquisitions.

Reconciliation Non-GAAP Page 23

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 Net income to Operating income:

														YTD		YTD			Full Year
	2Q-13		1Q-13			4Q-12		3Q-12			2Q-12			2013		2012			2012
Net income, as reported	$	891	$	953		$	765	$	640		$	328		$	1,844	$	1,301		$	2,706
Net realized gains (losses)		104		206			272		(60	)		(394	)		310		(134	)		78
Net realized gains (losses) in other income (expense)(1)		12		33	��		23		20			1			45		19			62
Income tax expense on net realized gains (losses)		15		32			22		8			22			47		28			58
Operating income	$	790	$	746		$	492	$	688		$	743		$	1,536	$	1,444		$	2,624

(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).

The following table presents the reconciliation of effective tax rate to the operating effective tax rate:

																YTD			YTD			Full Year
	2Q-13			1Q-13			4Q-12			3Q-12			2Q-12			2013			2012			2012
Tax expense (benefit), as reported	$	115		$	122		$	(135	)	$	147		$	148		$	237		$	258		$	270
Tax expense on net realized gains (losses)		15			32			22			8			22			47			28			58
Tax expense (benefit), adjusted	$	100		$	90		$	(157	)	$	139		$	126		$	190		$	230		$	212
Income before tax, as reported	$	1,006		$	1,075		$	630		$	787		$	476		$	2,081		$	1,559		$	2,976
Less: realized gains (losses)		104			206			272			(60	)		(394	)		310			(134	)		78
Less: realized gains (losses) in other income (expense)		12			33			23			20			1			45			19			62
Operating income before tax	$	890		$	836		$	335		$	827		$	869		$	1,726		$	1,674		$	2,836
Effective tax rate		11.5	%		11.3	%		-21.4	%		18.7	%		31.0	%		11.4	%		16.6	%		9.1	%
Adjustment for tax impact of net realized gains (losses)		-0.3	%		-0.5	%		-25.4	%		-2.0	%		-16.4	%		-0.4	%		-2.8	%		-1.6	%
Operating effective tax rate		11.2	%		10.8	%		-46.8	%		16.7	%		14.6	%		11.0	%		13.8	%		7.5	%

The following table presents the reconciliation of ROE to Operating ROE:

							YTD			YTD			Full Year
	2Q-13			2Q-12			2013			2012			2012
Net income	$	891		$	328		$	1,844		$	1,301		$	2,706
Operating income	$	790		$	743		$	1,536		$	1,444		$	2,624
Equity—beginning of period, as reported	$	27,942		$	25,431		$	27,531		$	24,332		$	24,332
Less: unrealized gains (losses) on investments, net of deferred tax		2,538			1,958			2,633			1,715			1,715
Equity—beginning of period, as adjusted	$	25,404		$	23,473		$	24,898		$	22,617		$	22,617
Equity—end of period, as reported	$	27,295		$	25,762		$	27,295		$	25,762		$	27,531
Less: unrealized gains (losses) on investments, net of deferred tax		1,318			2,166			1,318			2,166			2,633
Equity—end of period, as adjusted	$	25,977		$	23,596		$	25,977		$	23,596		$	24,898
Average equity, as reported	$	27,619		$	25,597		$	27,413		$	25,047		$	25,932
Average equity, as adjusted	$	25,691		$	23,535		$	25,438		$	23,107		$	23,758
Operating ROE		12.3	%		12.6	%		12.1	%		12.5	%		11.0	%
ROE		12.9	%		5.1	%		13.5	%		10.4	%		10.4	%

Reconciliation Non-GAAP 2 Page 24

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			March 31			December 31			June 30
	2013			2013			2012			2012
Shareholders’ equity	$	27,295		$	27,942		$	27,531		$	25,762
Less: goodwill and other intangible assets		5,395			4,909			4,975			4,826
Numerator for tangible book value per share	$	21,900		$	23,033		$	22,556		$	20,936
Book value—% change over prior quarter		-2.3	%		1.5	%		2.1	%		1.3	%
Tangible book value—% change over prior quarter		-4.9	%		2.1	%		2.7	%		1.8	%
Denominator		340,086,269			340,045,256			340,321,534			339,060,885
Book value per common share	$	80.26		$	82.17		$	80.90		$	75.98
Tangible book value per common share	$	64.40		$	67.74		$	66.28		$	61.75
Reconciliation of Book Value
Shareholders’ equity, beginning of quarter	$	27,942		$	27,531		$	26,963		$	25,431
Operating income		790			746			492			743
Net realized gains (losses), net of tax		101			207			273			(415	)
Net unrealized gains (losses), net of tax		(1,220	)		(95	)		(70	)		208
Repurchase of shares		(58	)		(154	)		—			—
Dividend declared on common shares		(174	)		(168	)		(168	)		(168	)
Cumulative translation, net of tax		(168	)		(156	)		(37	)		(79	)
Pension liability		(2	)		14			(20	)		—
Other (1)		84			17			98			42
	$	27,295		$	27,942		$	27,531		$	25,762

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

Reconciliation Book Value Page 25

ACE Limited Glossary

ACE Limited Consolidated comprises all segments including Corporate and Other.

Operating return on equity (ROE) or ROE calculated using income excluding net realized gains (losses): Operating income or Income excluding net realized gains (losses), net of tax, divided by average shareholders’ equity for the period excluding unrealized gains (losses) on investments, net of tax. 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.

Operating effective tax rate: 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 losses and loss expenses, policy benefits, acquisition costs, and administrative expenses. In addition, Life underwriting income includes gains/losses from fair value changes in 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.

Glossary Page 26