Chubb Limited (CB) 8-K ACE Reports Fourth Quarter Operating Income of $827 Million

Exhibit 99.2

	Financial Supplement
	December 31, 2014
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 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
III.	Global P&C Results
	- Global P&C Results - Consecutive Quarters		5
IV.	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
V.	Balance Sheet Details
	- Loss Reserve Rollforward		12
	- Reinsurance Recoverable Analysis		13
	- Investment Portfolio		14 - 17
	- Net Realized and Unrealized Gains (Losses)		18
	- Capital Structure		19
	- Computation of Basic and Diluted Earnings Per Share		20
	- Book Value and Book Value per Common Share		21
VI.	Other Disclosures
	- Non-GAAP Financial Measures		22 - 24
	- Glossary		25

  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.

					Constant $					Constant $
			% Change		% Change			% Change		% Change
	Three months ended December 31		4Q-14 vs.	Constant $	4Q-14 vs.	Year ended December 31		2014 vs.	Constant $	2014 vs.
	2014	2013	4Q-13	2013(1)	4Q-13(1)	2014	2013	2013	2013(1)	2013(1)
Gross premiums written	$            5,746	$            5,462	5.2%	$            5,349	7.4%	$          23,390	$          22,828	2.5%	$          22,622	3.4%
Net premiums written	$            4,326	$            4,216	2.6%	$            4,114	5.2%	$          17,799	$          17,025	4.6%	$          16,847	5.7%
P&C net premiums written(2)	$            3,803	$            3,712	2.4%	$            3,621	5.0%	$          15,787	$          15,053	4.9%	$          14,913	5.9%
Global P&C net premiums written(2)	$            3,559	$            3,456	3.0%	$            3,365	5.8%	$          14,197	$          13,426	5.7%	$          13,286	6.9%
Net premiums earned	$            4,370	$            4,363	0.2%	$            4,262	2.5%	$          17,426	$          16,613	4.9%	$          16,436	6.0%
Net investment income	$               577	$               557	3.6%			$            2,252	$            2,144	5.1%
Operating income	$               827	$               824	0.4%			$            3,320	$            3,217	3.2%
Net income	$               555	$               998	-44.4%			$            2,853	$            3,758	-24.1%
Comprehensive income	$               138	$               776	NM			$            2,892	$            2,023	NM
Operating cash flow	$            1,274	$            1,286				$            4,496	$            4,022
P&C combined ratio(2)
Loss and loss expense ratio	58.6%	61.3%				58.3%	59.6%
Underwriting and administrative expense ratio	29.9%	28.0%				29.4%	28.4%
Combined ratio	88.5%	89.3%				87.7%	88.0%
Operating return on equity (ROE)	11.8%	12.1%				12.0%	12.2%
ROE	7.5%	14.0%				9.8%	13.3%
Operating effective tax rate(3)	12.7%	9.2%				13.9%	11.6%
Effective tax rate(4)	29.5%	8.1%				18.2%	11.3%
Diluted earnings per share
Operating income	$              2.47	$              2.39	3.3%			$              9.79	$              9.35	4.7%
Net income	$              1.66	$              2.90	-42.8%			$              8.42	$            10.92	-22.9%
Book value per common share						$            90.02	$            84.83	6.1%
Book value per common share excluding foreign currency(5)						$            92.29	$            84.83	8.8%
Tangible book value per common share						$            72.61	$            68.93	5.3%
Tangible book value per common share excluding 2014 acquisitions(6)						$            74.43	$            68.93	8.0%
Tangible book value per common share excluding 2014 acquisitions and foreign currency (5) (6)						$            76.70	$            68.93	11.3%
Weighted average basic common shares outstanding	331.1	340.9				335.6	340.9
Weighted average diluted common shares outstanding	334.6	344.2				339.0	344.1
Debt plus trust preferred securities/ tangible capital						20.7%	20.4%

(1) Prior periods on a constant dollar basis.

(2) See non-GAAP financial measures.

(3) Operating effective tax rate is dependent upon the mix of earnings from different jurisdictions with various tax rates. A change in the geographic mix of earnings would change the effective tax rate. The increase in the operating effective tax rate for the quarter and YTD was primarily due to a lower percentage of operating earnings being generated in lower tax paying jurisdictions.

(4) Q4 2014 and full year 2014 include $115 million due to a deferred tax charge related to unrealized foreign exchange losses.

(5) For 2014, book value per common share and tangible book value per common share exclude the impact of foreign currency movement.

(6) For 2014, tangible book value per common share excludes the impact from goodwill and intangibles relating to the acquisitions of the large corporate P&C insurance business of Itaú Seguros, S.A. and The Siam Commercial Samaggi Insurance PCL of $475 million and $125 million, respectively.

Financial Highlights Page 1

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

ACE Limited Consolidated	4Q-14		3Q-14		2Q-14		1Q-14		4Q-13		Full Year 2014		Full Year 2013
Consolidated Results (Including Corporate) Excluding Life Segment(1)
Gross premiums written	$	5,193	$	5,736	$	5,480	$	4,852	$	4,936	$	21,261	$	20,752
Net premiums written		3,803		4,232		4,061		3,691		3,712		15,787		15,053
Net premiums earned		3,871		4,265		3,842		3,486		3,882		15,464		14,708
Adjusted losses and loss expenses(1)		2,269		2,494		2,234		2,012		2,378		9,009		8,767
Policy acquisition costs		641		702		637		617		605		2,597		2,301
Administrative expenses		517		483		493		467		483		1,960		1,868
Underwriting income		444		586		478		390		416		1,898		1,772
Net investment income		508		497		490		489		493		1,984		1,893
Interest expense		66		66		69		68		67		269		260
Other income (expense) - operating(2)		(25)		(29)		(26)		(23)		(23)		(103)		(105)
Income tax expense		110		169		120		88		81		487		390
Operating income (including Corporate) excluding Life segment		751		819		753		700		738		3,023		2,910
Life segment operating income		76		72		72		77		86		297		307
Consolidated operating income		827		891		825		777		824		3,320		3,217
Adjusted net realized gains (losses)(1)		(210)		(165)		(81)		(102)		154		(558)		505
Net realized gains (losses) related to unconsolidated entities		49		55		36		51		25		191		92
Income tax expense (benefit) on adjusted net realized gains (losses)(3)		111		(4)		1		(8)		5		100		56
Consolidated net income	$	555	$	785	$	779	$	734	$	998	$	2,853	$	3,758
% Change versus prior year period(1)
Net premiums written as reported		2.4%		2.2%		4.0%		12.0%		18.2%		4.9%		6.8%
Net premiums earned as reported		-0.3%		2.9%		7.1%		12.6%		15.5%		5.1%		6.9%
Net premiums written constant $		5.0%		1.7%		4.5%		13.7%		19.8%		5.9%		7.8%
Net premiums earned constant $		2.1%		2.5%		7.4%		14.8%		17.0%		6.2%		7.9%
Other ratios
Net premiums written/gross premiums written(1)		73%		74%		74%		76%		75%		74%		73%
Operating effective tax rate		12.7%		16.9%		13.7%		11.5%		9.2%		13.9%		11.6%
P&C combined ratio(1)
Loss and loss expense ratio		58.6%		58.5%		58.2%		57.7%		61.3%		58.3%		59.6%
Policy acquisition cost ratio		16.6%		16.5%		16.6%		17.7%		15.6%		16.8%		15.7%
Administrative expense ratio		13.3%		11.3%		12.7%		13.4%		12.4%		12.6%		12.7%
Combined ratio		88.5%		86.3%		87.5%		88.8%		89.3%		87.7%		88.0%
Combined ratio excluding catastrophe losses and PPD		89.5%		89.8%		88.7%		88.9%		91.5%		89.3%		90.0%
P&C expense ratio		29.9%		27.8%		29.3%		31.1%		28.0%		29.4%		28.4%
P&C expense ratio excluding A&H		26.7%		24.3%		26.0%		27.5%		24.0%		26.0%		24.5%
Catastrophe reinstatement premiums collected - pre-tax	$	2	$	1	$	-	$	-	$	1	$	3	$	3
Catastrophe losses - pre-tax	$	71	$	87	$	80	$	53	$	37	$	291	$	230
Favorable prior period development (PPD) - pre-tax(4)	$	(107)	$	(232)	$	(126)	$	(62)	$	(122)	$	(527)	$	(530)
Loss and loss expense ratio excluding catastrophe losses and PPD		59.6%		62.2%		59.4%		57.5%		63.5%		59.8%		61.8%

(1) See non-GAAP financial measures.

(2) Excludes portion of net realized investment gains and losses related to unconsolidated entities.

(3) Q4 2014 and full year 2014 include $115 million due to a deferred tax charge related to unrealized foreign exchange losses.

(4) For Q4 2014 and full year 2014, favorable prior period development is net of $8 million and $7 million, respectively, of net earned premium adjustments related to the Insurance – North American P&C, Insurance – North American Agriculture, and Global Reinsurance segments.

Consolidated Results Page 2

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

	December 31 2014		September 30 2014		June 30     2014		March 31     2014		December 31 2013
Assets
Fixed maturities available for sale, at fair value	$	49,395	$	49,148	$	51,601	$	49,611	$	49,254
Fixed maturities held to maturity, at amortized cost		7,331		7,548		5,774		5,887		6,098
Equity securities, at fair value		510		546		907		851		837
Short-term investments, at fair value		2,322		2,753		2,108		2,526		1,763
Other investments		3,346		3,259		3,230		3,170		2,976
Total investments		62,904		63,254		63,620		62,045		60,928
Cash		655		806		594		847		579
Securities lending collateral		1,330		1,440		1,440		1,550		1,632
Insurance and reinsurance balances receivable		5,426		5,189		5,316		4,761		5,026
Reinsurance recoverable on losses and loss expenses		11,992		10,945		10,768		10,755		11,227
Deferred policy acquisition costs		2,601		2,592		2,562		2,402		2,313
Value of business acquired		466		491		514		517		536
Prepaid reinsurance premiums		2,026		1,711		1,867		1,721		1,675
Goodwill and other intangible assets		5,724		5,425		5,522		5,382		5,404
Deferred tax assets		295		408		234		516		616
Investments in partially-owned insurance companies		504		495		470		466		470
Other assets		4,325		4,801		4,540		4,217		4,104
Total assets	$	98,248	$	97,557	$	97,447	$	95,179	$	94,510
Liabilities
Unpaid losses and loss expenses	$	38,315	$	37,447	$	37,177	$	36,866	$	37,443
Unearned premiums		8,222		8,020		8,296		7,791		7,539
Future policy benefits		4,754		4,782		4,778		4,632		4,615
Insurance and reinsurance balances payable		4,095		3,804		3,794		3,734		3,628
Securities lending payable		1,331		1,441		1,441		1,551		1,633
Accounts payable, accrued expenses, and other liabilities		5,726		5,829		5,419		5,218		4,810
Short-term debt		2,552		1,851		1,851		1,901		1,901
Long-term debt		3,357		4,057		4,057		3,808		3,807
Trust preferred securities		309		309		309		309		309
Total liabilities		68,661		67,540		67,122		65,810		65,685
Shareholders’ equity
Total shareholders’ equity, excl. AOCI		28,396		28,409		28,230		27,843		27,673
Accumulated other comprehensive income (AOCI)		1,191		1,608		2,095		1,526		1,152
Total shareholders’ equity		29,587		30,017		30,325		29,369		28,825
Total liabilities and shareholders’ equity	$	98,248	$	97,557	$	97,447	$	95,179	$	94,510
Book value per common share	$	90.02	$	90.38	$	90.19	$	86.90	$	84.83
% change over prior quarter		-0.4%		0.2%		3.8%		2.4%		2.2%
Tangible book value per common share	$	72.61	$	74.05	$	73.77	$	70.97	$	68.93
% change over prior quarter		-1.9%		0.4%		3.9%		3.0%		3.0%

      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

	4Q-14		4Q-13		% Change   4Q-14 vs.     4Q-13		Constant $       4Q-13(2)		Constant $   % Change 4Q-14 vs.     4Q-13(2)		Full Year     2014		Full Year     2013		% Change 2014 vs.     2013		Constant $ Full Year     2013(2)		Constant $ % Change 2014 vs.     2013 (2)
Net premiums written
Property and all other	$	1,178	$	1,132		4.2%					$	5,249	$	4,855		8.1%
Casualty		1,718		1,644		4.6%						6,213		5,932		4.8%
Subtotal		2,896		2,776		4.4%	$	2,720		6.6%		11,462		10,787		6.3%	$	10,709		7.0%
Agriculture		244		256		-5.0%		256		-5.0%		1,590		1,627		-2.3%		1,627		-2.3%
Personal accident (A&H)(1)		920		937		-1.9%		898		2.4%		3,735		3,655		2.2%		3,577		4.4%
Life		266		247		7.8%		240		10.6%		1,012		956		5.9%		934		8.4%
Total consolidated	$	4,326	$	4,216		2.6%	$	4,114		5.2%	$	17,799	$	17,025		4.6%	$	16,847		5.7%
% of Total Consolidated
Property and all other		27%		27%								29%		29%
Casualty		40%		39%								35%		34%
Subtotal		67%		66%								64%		63%
Agriculture		6%		6%								9%		10%
Personal accident (A&H)(1)		21%		22%								21%		21%
Life		6%		6%								6%		6%
Total consolidated		100%		100%								100%		100%
Net premiums earned
Property and all other	$	1,314	$	1,261		4.2%					$	5,161	$	4,704		9.7%
Casualty		1,565		1,522		2.9%						6,080		5,759		5.6%
Subtotal		2,879		2,783		3.5%	$	2,727		5.6%		11,241		10,463		7.4%	$	10,379		8.3%
Agriculture		327		426		-23.4%		426		-23.4%		1,526		1,678		-9.1%		1,678		-9.1%
Personal accident (A&H)(1)		908		920		-1.3%		881		3.0%		3,678		3,567		3.1%		3,493		5.3%
Life		256		234		9.8%		228		12.7%		981		905		8.5%		886		10.8%
Total consolidated	$	4,370	$	4,363		0.2%	$	4,262		2.5%	$	17,426	$	16,613		4.9%	$	16,436		6.0%
% of Total Consolidated
Property and all other		30%		29%								29%		28%
Casualty		36%		35%								35%		35%
Subtotal		66%		64%								64%		63%
Agriculture		7%		10%								9%		10%
Personal accident (A&H)(1)		21%		21%								21%		21%
Life		6%		5%								6%		6%
Total consolidated		100%		100%								100%		100%
Operating income, after-tax
Property, casualty, and all other	$	620	$	680		-8.8%	$	673		-7.9%	$	2,581	$	2,515		2.6%	$	2,514		2.7%
Agriculture		45		(20)		NM		(20)		NM		96		63		51.7%		63		51.7%
Personal accident (A&H)(1)		121		129		-6.3%		125		-3.1%		484		497		-2.6%		488		-0.9%
Life		41		35		18.3%		36		16.3%		159		142		12.2%		143		11.6%
Total consolidated	$	827	$	824		0.4%	$	814		1.7%	$	3,320	$	3,217		3.2%	$	3,208		3.5%
% of Total Consolidated
Property, casualty, and all other		75%		82%								78%		78%
Agriculture		5%		-2%								3%		2%
Personal accident (A&H)(1)		15%		16%								14%		15%
Life		5%		4%								5%		5%
Total consolidated		100%		100%								100%		100%

(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 Page 4

ACE Limited   Global P&C Results - Consecutive Quarters   (in millions of U.S. dollars, except ratios)   (Unaudited)

Global P&C includes the company’s Insurance – North American P&C segment (refer to page 7), Insurance – Overseas General segment (refer to page 9), Global Reinsurance segment (refer to page 10), and Corporate (not separately disclosed in the Financial Supplement). Global P&C excludes the Insurance – North American Agriculture segment.

Global P&C (Including Corporate)	4Q-14		3Q-14		2Q-14		1Q-14		4Q-13		Full Year     2014		Full Year     2013
Gross premiums written	$	4,891	$	4,495	$	4,879	$	4,618	$	4,719	$	18,883	$	18,091
Net premiums written		3,559		3,468		3,673		3,497		3,456		14,197		13,426
Net premiums earned		3,544		3,499		3,512		3,383		3,456		13,938		13,030
Losses and loss expenses		2,017		1,853		1,955		1,884		1,925		7,709		7,242
Policy acquisition costs		629		661		614		612		608		2,516		2,248
Administrative expenses		513		480		492		466		485		1,951		1,857
Underwriting income		385		505		451		421		438		1,762		1,683
Net investment income		501		491		484		482		486		1,958		1,867
Interest expense		66		66		69		68		66		269		259
Other income (expense) - operating(1)		(16)		(22)		(17)		(15)		(15)		(70)		(73)
Income tax expense		98		146		115		95		85		454		371
Global P&C operating income		706		762		734		725		758		2,927		2,847
Net realized gains (losses)		(67)		(76)		(9)		(26)		-		(178)		143
Net realized gains (losses) related to unconsolidated entities		43		51		38		53		27		185		87
Income tax expense (benefit) on net realized gains (losses)(2)		110		(5)		1		(5)		6		101		55
Global P&C net income	$	572	$	742	$	762	$	757	$	779	$	2,833	$	3,022
% Change versus prior year period
Net premiums written as reported		3.0%		4.0%		6.4%		9.9%		13.1%		5.7%		9.7%
Net premiums earned as reported		2.6%		6.2%		8.5%		11.2%		11.6%		7.0%		9.6%
Net premiums written constant $		5.8%		3.4%		7.0%		11.6%		14.7%		6.9%		11.0%
Net premiums earned constant $		5.4%		5.7%		8.8%		13.4%		13.1%		8.2%		10.8%
Other ratios
Net premiums written/gross premiums written		73%		77%		75%		76%		73%		75%		74%
Combined ratio
Loss and loss expense ratio		56.9%		52.9%		55.7%		55.7%		55.7%		55.3%		55.6%
Policy acquisition cost ratio		17.8%		18.9%		17.5%		18.1%		17.6%		18.0%		17.3%
Administrative expense ratio		14.4%		13.8%		13.9%		13.8%		14.1%		14.1%		14.2%
Combined ratio		89.1%		85.6%		87.1%		87.6%		87.4%		87.4%		87.1%
Combined ratio excluding catastrophe losses and PPD		90.2%		89.8%		88.7%		89.0%		89.9%		89.4%		89.4%
Expense ratio		32.2%		32.7%		31.4%		31.9%		31.7%		32.1%		31.5%
Expense ratio excluding A&H		29.2%		29.3%		28.2%		28.4%		27.9%		28.8%		27.9%
Catastrophe reinstatement premiums collected - pre-tax	$	2	$	1	$	-	$	-	$	1	$	3	$	3
Catastrophe losses - pre-tax	$	70	$	85	$	71	$	52	$	35	$	278	$	223
Favorable prior period development (PPD) - pre-tax(3)	$	(106)	$	(229)	$	(126)	$	(100)	$	(122)	$	(561)	$	(517)
Loss and loss expense ratio excluding catastrophe losses and PPD		57.9%		57.5%		57.3%		57.1%		58.3%		57.5%		58.0%

(1) Excludes portion of net realized investment gains and losses related to unconsolidated entities.

(2) Q4 2014 and full year 2014 include $115 million due to a deferred tax charge related to unrealized foreign exchange losses.

(3) For Q4 2014, favorable prior period development includes $2 million of favorable net earned premium adjustments on loss sensitive policies and $1 million of favorable profit-sharing commissions that are included in the expense ratio. For full year 2014, favorable prior period development is net of $32 million of net earned premium adjustments on loss sensitive policies and $1 million of profit-sharing commissions that are included in the expense ratio.

Global P&C Page 5

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

The table below combines the company’s Insurance – North American P&C segment (refer to page 7) and Insurance – North American Agriculture segment (refer to page 8) into total Insurance – North American business presentation for reference purposes only.

Insurance - North American

	4Q-14		3Q-14		2Q-14		1Q-14		4Q-13		Full Year 2014		Full Year 2013
Gross premiums written	$	2,841	$	3,367	$	2,948	$	2,258	$	2,656	$	11,414	$	11,381
Net premiums written		1,913		2,305		2,023		1,612		1,858		7,853		7,542
Net premiums earned		1,887		2,284		1,872		1,590		1,937		7,633		7,399
Losses and loss expenses(1)		1,329		1,694		1,295		1,068		1,438		5,386		5,301
Policy acquisition costs		166		210		175		164		150		715		650
Administrative expenses		181		168		176		162		162		687		612
Underwriting income		211		212		226		196		187		845		836
Net investment income		280		283		271		277		273		1,111		1,047
Interest expense		2		2		2		3		2		9		6
Other income (expense) - operating		(2)		(8)		(4)		(8)		(7)		(22)		(37)
Income tax expense		70		91		94		76		69		331		331
Operating income		417		394		397		386		382		1,594		1,509
Net realized gains (losses)(1)		(39)		(5)		(11)		(9)		9		(64)		74
Net realized gains (losses) related to unconsolidated entities		19		32		19		20		19		90		63
Income tax expense on net realized gains (losses)		1		5		2		-		10		8		36
Net income	$	396	$	416	$	403	$	397	$	400	$	1,612	$	1,610
Combined ratio
Loss and loss expense ratio		70.4%		74.1%		69.2%		67.2%		74.2%		70.6%		71.6%
Policy acquisition cost ratio		8.8%		9.2%		9.3%		10.3%		7.7%		9.4%		8.8%
Administrative expense ratio		9.6%		7.4%		9.4%		10.2%		8.5%		8.9%		8.3%
Combined ratio		88.8%		90.7%		87.9%		87.7%		90.4%		88.9%		88.7%
Combined ratio excluding catastrophe losses and PPD		87.9%		88.9%		87.6%		87.2%		91.1%		88.0%		89.3%
Catastrophe reinstatement premiums expensed - pre-tax	$	-	$	-	$	-	$	-	$	-	$	-	$	(1)
Catastrophe losses - pre-tax	$	30	$	37	$	45	$	33	$	14	$	145	$	101
Unfavorable (favorable) prior period development (PPD) - pre-tax	$	(12)	$	8	$	(39)	$	(30)	$	(28)	$	(73)	$	(147)
Loss and loss expense ratio excluding catastrophe losses and PPD		69.6%		72.5%		68.9%		66.2%		75.0%		69.6%		72.4%
% Change versus prior year period
Net premiums written		3.0%		-0.1%		2.1%		15.5%		22.5%		4.1%		4.6%
Net premiums earned		-2.6%		-0.4%		5.2%		14.4%		20.4%		3.2%		5.4%
Other ratios
Net premiums written/gross premiums written		67%		68%		69%		71%		70%		69%		66%

(1) See non-GAAP financial measures.

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	4Q-14		3Q-14		2Q-14		1Q-14		4Q-13		Full Year     2014		Full Year     2013
Gross premiums written	$	2,539	$	2,126	$	2,347	$	2,024	$	2,439	$	9,036	$	8,720
Net premiums written		1,669		1,541		1,635		1,418		1,602		6,263		5,915
Net premiums earned		1,560		1,518		1,542		1,487		1,511		6,107		5,721
Losses and loss expenses		1,077		1,053		1,016		940		985		4,086		3,776
Policy acquisition costs		154		169		152		159		153		634		597
Administrative expenses		177		165		175		161		164		678		601
Underwriting income		152		131		199		227		209		709		747
Net investment income		273		277		265		270		266		1,085		1,021
Interest expense		2		2		2		3		1		9		5
Other income (expense) - operating		7		(1)		5		-		1		11		(5)
Income tax expense		58		68		89		83		73		298		312
Operating income		372		337		378		411		402		1,498		1,446
Net realized gains (losses)		(42)		(5)		(11)		(9)		9		(67)		72
Net realized gains (losses) related to unconsolidated entities		19		32		19		20		19		90		63
Income tax expense on net realized gains (losses)		1		5		2		-		10		8		35
Net income	$	348	$	359	$	384	$	422	$	420	$	1,513	$	1,546
Combined ratio
Loss and loss expense ratio		69.0%		69.3%		66.0%		63.2%		65.2%		66.9%		66.0%
Policy acquisition cost ratio		9.9%		11.1%		9.8%		10.7%		10.1%		10.4%		10.4%
Administrative expense ratio		11.3%		11.0%		11.3%		10.8%		10.9%		11.1%		10.5%
Combined ratio		90.2%		91.4%		87.1%		84.7%		86.2%		88.4%		86.9%
Combined ratio excluding catastrophe losses and PPD		89.1%		88.5%		87.3%		87.1%		87.2%		88.0%		87.6%
Catastrophe reinstatement premiums expensed - pre-tax	$	-	$	-	$	-	$	-	$	-	$	-	$	(1)
Catastrophe losses - pre-tax	$	29	$	35	$	36	$	32	$	12	$	132	$	94
Unfavorable (favorable) prior period development (PPD) - pre-tax(1)	$	(11)	$	11	$	(39)	$	(68)	$	(28)	$	(107)	$	(134)
Loss and loss expense ratio excluding catastrophe losses and PPD		67.8%		66.9%		66.2%		65.7%		66.3%		66.6%		66.8%
% Change versus prior year period
Net premiums written		4.2%		2.7%		6.9%		10.5%		11.8%		5.9%		10.6%
Net premiums earned		3.3%		5.1%		7.9%		11.2%		12.3%		6.8%		11.1%
Other ratios
Net premiums written/gross premiums written		66%		72%		70%		70%		66%		69%		68%

(1) For Q4 2014, prior period development includes $123 million of adverse development for legacy asbestos and environmental liability exposures, $7 million of adverse development for other run-off business exposures, $3 million of favorable net earned premium adjustments on loss sensitive polices, and $1 million of favorable profit-sharing commissions that are included in the expense ratio. For full year 2014, favorable prior period development is net of $186 million of adverse development for legacy asbestos and environmental liability exposures, $29 million of adverse development for other run-off business exposures, $22 million of unfavorable net earned premium adjustments on loss sensitive policies, and $1 million of unfavorable 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

	4Q-14		3Q-14		2Q-14		1Q-14		4Q-13		Full Year     2014		Full Year     2013
Gross premiums written	$	302	$	1,241	$	601	$	234	$	217	$	2,378	$	2,661
Net premiums written		244		764		388		194		256		1,590		1,627
Net premiums earned		327		766		330		103		426		1,526		1,678
Losses and loss expenses(1)		252		641		279		128		453		1,300		1,525
Policy acquisition costs		12		41		23		5		(3)		81		53
Administrative expenses		4		3		1		1		(2)		9		11
Underwriting income (loss)(2)		59		81		27		(31)		(22)		136		89
Net investment income		7		6		6		7		7		26		26
Interest expense		-		-		-		-		1		-		1
Other income (expense) - operating		(9)		(7)		(9)		(8)		(8)		(33)		(32)
Income tax expense (benefit)		12		23		5		(7)		(4)		33		19
Operating income (loss)		45		57		19		(25)		(20)		96		63
Net realized gains (losses) excluding gains (losses) on crop derivatives(1)		3		-		-		-		-		3		2
Net realized gains (losses) related to unconsolidated entities		-		-		-		-		-		-		-
Income tax expense on net realized gains (losses)		-		-		-		-		-		-		1
Net income (loss)	$	48	$	57	$	19	$	(25)	$	(20)	$	99	$	64
Combined ratio
Loss and loss expense ratio		77.2%		83.7%		84.4%		124.6%		106.3%		85.2%		90.9%
Policy acquisition cost ratio		3.6%		5.4%		7.0%		4.5%		-0.5%		5.3%		3.2%
Administrative expense ratio		1.0%		0.4%		0.4%		1.2%		-0.6%		0.6%		0.6%
Combined ratio		81.8%		89.5%		91.8%		130.3%		105.2%		91.1%		94.7%
Combined ratio excluding catastrophe losses and PPD		82.4%		89.6%		89.1%		88.9%		104.8%		87.8%		95.1%
Catastrophe reinstatement premiums-pre-tax	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Catastrophe losses - pre-tax	$	1	$	2	$	9	$	1	$	2	$	13	$	7
Unfavorable (favorable) prior period development (PPD) - pre-tax (3)	$	(1)	$	(3)	$	-	$	38	$	-	$	34	$	(13)
Loss and loss expense ratio excluding catastrophe losses and PPD		77.9%		83.8%		81.8%		78.3%		105.8%		81.8%		91.3%
% Change versus prior year period
Net premiums written		-5.0%		-5.2%		-14.2%		72.1%		203.6%		-2.3%		-12.5%
Net premiums earned		-23.4%		-9.8%		-5.7%		96.8%		62.3%		-9.1%		-10.4%
Other ratios
Net premiums written/gross premiums written		81%		62%		65%		83%		118%		67%		61%

(1) (Gains) losses on crop derivatives are reclassified from Net realized gains (losses) for this presentation.

(2) We assess the performance of our Insurance – North American Agriculture segment based on underwriting income which includes (gains) losses on crop derivatives.

(3) For Q4 2014, favorable prior period development is net of $10 million of unfavorable net earned premium adjustments. For full year 2014, unfavorable prior period development is net of $25 million of favorable net earned premium adjustments and $1 million of favorable profit-sharing commissions.

Insurance - North American Agirculture Page 8

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

Insurance – Overseas General

	4Q-14		3Q-14		2Q-14		1Q-14		4Q-13		Full Year     2014		Full Year     2013
Gross premiums written	$	2,212	$	2,156	$	2,224	$	2,261	$	2,126	$	8,853	$	8,314
Net premiums written		1,749		1,719		1,760		1,771		1,699		6,999		6,520
Net premiums earned		1,758		1,726		1,709		1,612		1,700		6,805		6,333
Losses and loss expenses		835		707		830		817		835		3,189		3,062
Policy acquisition costs		419		418		402		386		405		1,625		1,453
Administrative expenses		262		258		256		250		258		1,026		1,008
Underwriting income		242		343		221		159		202		965		810
Net investment income		147		130		136		132		143		545		539
Interest expense		2		2		1		1		1		6		5
Other income (expense) - operating		(15)		(15)		(17)		(9)		(13)		(56)		(48)
Income tax expense		78		108		57		42		52		285		202
Operating income		294		348		282		239		279		1,163		1,094
Net realized gains (losses)		(7)		(75)		14		(10)		(16)		(78)		18
Net realized gains (losses) related to unconsolidated entities		12		9		9		15		4		45		9
Income tax expense (benefit) on net realized gains (losses)(1)		111		(11)		(2)		(5)		(4)		93		20
Net income	$	188	$	293	$	307	$	249	$	271	$	1,037	$	1,101
Combined ratio
Loss and loss expense ratio		47.5%		40.9%		48.6%		50.7%		49.2%		46.9%		48.4%
Policy acquisition cost ratio		23.8%		24.3%		23.5%		23.9%		23.8%		23.9%		22.9%
Administrative expense ratio		15.0%		14.9%		15.0%		15.5%		15.1%		15.0%		15.9%
Combined ratio		86.3%		80.1%		87.1%		90.1%		88.1%		85.8%		87.2%
Combined ratio excluding catastrophe losses and PPD		89.4%		90.5%		89.3%		90.5%		91.6%		89.9%		90.5%
Catastrophe reinstatement premiums - pre-tax	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Catastrophe losses - pre-tax	$	30	$	39	$	26	$	17	$	17	$	112	$	88
Favorable prior period development (PPD) - pre-tax(2)	$	(86)	$	(219)	$	(63)	$	(23)	$	(76)	$	(391)	$	(299)
Loss and loss expense ratio excluding catastrophe losses and PPD		50.7%		51.3%		50.8%		51.1%		52.6%		51.0%		51.7%
% Change versus prior year period
Net premiums written as reported		3.0%		9.4%		8.0%		9.3%		15.1%		7.4%		11.2%
Net premiums earned as reported		3.4%		7.2%		9.4%		10.4%		13.5%		7.5%		10.3%
Net premiums written constant $		8.4%		8.1%		8.8%		12.3%		18.2%		9.4%		13.7%
Net premiums earned constant $		8.8%		6.0%		9.8%		14.6%		16.5%		9.6%		12.7%
Other ratios
Net premiums written/gross premiums written		79%		80%		79%		78%		80%		79%		78%

(1) Q4 2014 and full year 2014 include $115 million due to a deferred tax charge related to unrealized foreign exchange losses.

(2) For full year 2014, prior period development includes the favorable impact from the release of $52 million for an older liability case.

Insurance - Overseas General Page 9

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

Global Reinsurance	4Q-14		3Q-14		2Q-14		1Q-14		4Q-13		Full Year     2014		Full Year     2013
Gross premiums written	$	140	$	213	$	308	$	333	$	154	$	994	$	1,057
Net premiums written		141		208		278		308		155		935		991
Net premiums earned		226		255		261		284		245		1,026		976
Losses and loss expenses		104		92		109		126		104		431		396
Policy acquisition costs		56		74		60		67		49		257		197
Administrative expenses		13		13		14		14		14		54		50
Underwriting income		53		76		78		77		78		284		333
Net investment income		78		81		80		77		71		316		280
Interest expense		-		1		2		1		1		4		5
Other income (expense) - operating		3		-		-		1		2		4		4
Income tax expense		7		11		10		10		5		38		36
Operating income		127		145		146		144		145		562		576
Net realized gains (losses)		(12)		6		(15)		(8)		7		(29)		53
Net realized gains (losses) related to unconsolidated entities		12		10		10		18		4		50		15
Income tax expense on net realized gains (losses)		-		-		-		-		-		-		-
Net income	$	127	$	161	$	141	$	154	$	156	$	583	$	644
Combined ratio
Loss and loss expense ratio		45.8%		36.2%		41.7%		44.4%		42.5%		42.0%		40.5%
Policy acquisition cost ratio		25.0%		28.8%		23.1%		23.5%		20.4%		25.0%		20.3%
Administrative expense ratio		5.7%		5.2%		5.1%		5.0%		5.5%		5.3%		5.1%
Combined ratio		76.5%		70.2%		69.9%		72.9%		68.4%		72.3%		65.9%
Combined ratio excluding catastrophe losses and PPD		76.2%		75.7%		75.4%		75.1%		73.6%		75.6%		70.9%
Catastrophe reinstatement premiums collected - pre-tax	$	2	$	1	$	-	$	-	$	1	$	3	$	4
Catastrophe losses - pre-tax	$	11	$	11	$	9	$	3	$	6	$	34	$	41
Favorable prior period development (PPD) - pre-tax(1)	$	(9)	$	(21)	$	(24)	$	(9)	$	(18)	$	(63)	$	(84)
Loss and loss expense ratio excluding catastrophe losses and PPD		45.4%		42.8%		47.2%		46.5%		47.7%		45.5%		45.6%
% Change versus prior year period
Net premiums written as reported		-9.4%		-21.2%		-4.9%		10.3%		5.5%		-5.7%		-3.3%
Net premiums earned as reported		-7.7%		6.3%		6.1%		15.5%		-3.7%		5.1%		-2.6%
Net premiums written constant $		-8.8%		-21.8%		-5.0%		10.5%		5.3%		-5.8%		-3.3%
Net premiums earned constant $		-7.1%		5.7%		5.5%		15.4%		-3.6%		4.9%		-2.5%
Other ratios
Net premiums written/gross premiums written		100%		98%		90%		92%		101%		94%		94%

(1) For Q4 2014 and full year 2014, favorable prior period development is net of $1 million and $10 million, respectively, of net earned premium adjustments on loss sensitive policies.

Global Reinsurance Page 10

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

Life	4Q-14		3Q-14		2Q-14		1Q-14		4Q-13		Full Year     2014		Full Year     2013
Gross premiums written	$	553	$	528	$	526	$	522	$	526	$	2,129	$	2,076
Net premiums written		523		497		498		494		504		2,012		1,972
Net premiums earned		499		489		490		484		481		1,962		1,905
Losses and loss expenses		147		145		146		151		139		589		582
Policy benefits(1)		134		125		144		114		136		517		515
(Gains) losses from fair value changes in separate account assets(1)		3		6		(17)		6		(9)		(2)		(16)
Policy acquisition costs		123		123		121		111		97		478		358
Administrative expenses		73		71		73		68		87		285		343
Net investment income		69		69		66		64		64		268		251
Life underwriting income(2)		88		88		89		98		95		363		374
Interest expense		1		4		3		3		3		11		15
Other income (expense) - operating(1)		-		(1)		(2)		(5)		(4)		(8)		(18)
Income tax expense		11		11		12		13		2		47		34
Operating income		76		72		72		77		86		297		307
Net realized gains (losses):
Mark-to-market on guaranteed living benefits derivative (net of related hedges)		(153)		(95)		(70)		(67)		149		(385)		299
Foreign exchange gains (losses) and all other		7		6		(2)		(9)		5		2		61
Net realized gains (losses) related to unconsolidated entities		6		4		(2)		(2)		(2)		6		5
Income tax expense (benefit) on net realized gains (losses)		1		1		-		(3)		(1)		(1)		-
Net income (loss)	$	(65)	$	(14)	$	(2)	$	2	$	239	$	(79)	$	672
% Change versus prior year period
Net premiums written as reported		4.0%		3.8%		2.2%		-1.6%		-2.6%		2.0%		-0.4%
Net premiums earned as reported		3.6%		4.8%		2.2%		1.3%		-1.5%		3.0%		-0.6%
Net premiums written constant $(3)		6.2%		4.4%		4.4%		1.1%		-1.4%		4.0%		0.2%
Net premiums earned constant $		5.9%		5.4%		4.2%		4.0%		-0.4%		4.9%		-0.1%

(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) International life insurance net premiums written and deposits breakdown (excludes Combined North American and Life reinsurance businesses):

	4Q-14		Constant $   4Q-13		Constant $ % Change 4Q-14 vs. 4Q-13		Full Year   2014		Constant $   Full Year 2013		Constant $   % Change 2014 vs. 2013
International life insurance net premiums written	$	202	$	172		16.9%	$	750	$	650		15.3%
International life insurance deposits(4)		215		174		24.1%		823		678		21.4%
Total international life insurance net premiums written and deposits	$	417	$	346		20.5%	$	1,573	$	1,328		18.4%

(4) Includes deposits collected on universal life and investment contracts. 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     Incurred Ratio
	Gross			Ceded			Net
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
Losses and loss expenses incurred		3,617			962			2,655
Losses and loss expenses paid		(3,285	)		(942	)		(2,343)	88%
Other (incl. foreign exch. revaluation)		207			61			146
Balance at September 30, 2013	$	37,882		$	10,819		$	27,063
Losses and loss expenses incurred		3,322			805			2,517
Losses and loss expenses paid		(3,716	)		(993	)		(2,723)	108%
Other (incl. foreign exch. revaluation)		(45	)		(19	)		(26)
Balance at December 31, 2013	$	37,443		$	10,612		$	26,831
Losses and loss expenses incurred		2,462			301			2,161
Losses and loss expenses paid		(3,059	)		(762	)		(2,297)	106%
Other (incl. foreign exch. revaluation)		20			16			4
Balance at March 31, 2014	$	36,866		$	10,167		$	26,699
Losses and loss expenses incurred		3,004			616			2,388
Losses and loss expenses paid		(2,878	)		(729	)		(2,149)	90%
Other (incl. foreign exch. revaluation)		185			56			129
Balance at June 30, 2014	$	37,177		$	10,110		$	27,067
Losses and loss expenses incurred		3,840			1,156			2,684
Losses and loss expenses paid		(3,165	)		(810	)		(2,355)	88%
Other (incl. foreign exch. revaluation)		(405	)		(120	)		(285)
Balance at September 30, 2014	$	37,447		$	10,336		$	27,111
Losses and loss expenses incurred		3,442			1,026			2,416
Losses and loss expenses paid		(3,307	)		(873	)		(2,434)	101%
Other (incl. foreign exch. revaluation)		733			818			(85)
Balance at December 31, 2014	$	38,315		$	11,307		$	27,008
Add net recoverable on paid losses		-			685			(685)
Balance including net recoverable on paid losses	$	38,315		$	11,992		$	26,323

Loss Reserve Rollforward Page 12

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

Net Reinsurance Recoverable by Division

	December 31		September 30		June 30		March 31		December 31
	2014		2014		2014		2014		2013
Reinsurance recoverable on paid losses and loss expenses
Active operations	$	478	$	380	$	418	$	351	$	376
Brandywine and Other Run-off		313		342		353		357		356
Total	$	791	$	722	$	771	$	708	$	732
Reinsurance recoverable on unpaid losses and loss expenses(1)
Active operations	$	10,348	$	9,460	$	9,193	$	9,184	$	9,576
Brandywine and Other Run-off		1,210		1,142		1,192		1,249 ��		1,309
Total	$	11,558	$	10,602	$	10,385	$	10,433	$	10,885
Gross reinsurance recoverable
Active operations	$	10,826	$	9,840	$	9,611	$	9,535	$	9,952
Brandywine and Other Run-off		1,523		1,484		1,545		1,606		1,665
Total	$	12,349	$	11,324	$	11,156	$	11,141	$	11,617
Provision for uncollectible reinsurance(2)
Active operations	$	(217)	$	(251)	$	(251)	$	(249)	$	(251)
Brandywine and Other Run-off		(140)		(128)		(137)		(137)		(139)
Total	$	(357)	$	(379)	$	(388)	$	(386)	$	(390)
Net reinsurance recoverable
Active operations	$	10,609	$	9,589	$	9,360	$	9,286	$	9,701
Brandywine and Other Run-off		1,383		1,356		1,408		1,469		1,526
Total	$	11,992	$	10,945	$	10,768	$	10,755	$	11,227

(1) December 31, 2014 unpaid reinsurance recoverable balance includes $93 million reclassification of certain recoverables from Active operations to Brandywine and Other Run-off.

(2) 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)

	December 31 2014			September 30 2014			June 30 2014			March 31 2014			December 31 2013
Market Value
Fixed maturities available for sale	$	49,395		$	49,148		$	51,601		$	49,611		$	49,254
Fixed maturities held to maturity		7,589			7,763			6,015			6,080			6,263
Short-term investments		2,322			2,753			2,108			2,526			1,763
Total fixed maturities	$	59,306		$	59,664		$	59,724		$	58,217		$	57,280
Asset Allocation by Market Value
Treasury	$	2,448	4%	$	2,223	4%	$	2,386	4%	$	2,411	4%	$	2,327	4%
Agency		1,222	2%		1,272	2%		1,278	2%		1,349	2%		1,454	3%
Corporate and asset-backed		19,854	34%		19,863	33%		19,959	33%		19,650	34%		19,475	34%
Mortgage-backed		12,325	21%		12,454	21%		12,659	21%		12,277	21%		12,273	21%
Municipal		4,930	8%		4,890	8%		4,872	8%		4,599	8%		4,500	8%
Non-U.S.		16,205	27%		16,209	27%		16,462	28%		15,405	27%		15,488	27%
Short-term investments		2,322	4%		2,753	5%		2,108	4%		2,526	4%		1,763	3%
Total fixed maturities	$	59,306	100%	$	59,664	100%	$	59,724	100%	$	58,217	100%	$	57,280	100%
Credit Quality by Market Value
AAA	$	8,943	15%	$	9,105	15%	$	9,073	15%	$	9,410	16%	$	8,677	15%
AA		21,589	36%		21,783	37%		22,470	38%		21,652	37%		21,520	38%
A		11,625	20%		11,640	19%		11,400	19%		11,112	19%		11,168	19%
BBB		8,690	15%		8,397	14%		7,996	13%		7,306	12%		7,193	12%
BB		4,372	7%		4,607	8%		4,435	7%		4,451	8%		4,418	8%
B		3,916	7%		3,939	7%		4,126	7%		3,965	7%		3,940	7%
Other		171	0%		193	0%		224	1%		321	1%		364	1%
Total fixed maturities	$	59,306	100%	$	59,664	100%	$	59,724	100%	$	58,217	100%	$	57,280	100%
Cost/Amortized Cost
Fixed maturities available for sale	$	47,826		$	47,688		$	49,719		$	48,282		$	48,406
Fixed maturities held to maturity		7,331			7,548			5,774			5,887			6,098
Short-term investments		2,322			2,753			2,108			2,526			1,763
Subtotal fixed maturities		57,479			57,989			57,601			56,695			56,267
Equity securities		440			480			874			845			841
Other investments		2,999			2,910			2,876			2,823			2,671
Total investment portfolio	$	60,918		$	61,379		$	61,351		$	60,363		$	59,779
Avg. duration of fixed maturities		4.0 years			4.1 years			4.0 years			4.0 years			4.0 years
Avg. market yield of fixed maturities		2.8%			2.8%			2.6%			2.8%			3.0%
Avg. credit quality		A/Aa			A/Aa			A/Aa			A/Aa			A/Aa
Avg. yield on invested assets		3.8%			3.7%			3.7%			3.7%			3.8%

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 December 31, 2014
Agency residential mortgage-backed (RMBS)	$	-	$	10,216	$	-	$	-	$	-	$	10,216
Non-agency RMBS		35		5		18		12		15		85
Commercial mortgage-backed		1,995		14		12		3		-		2,024
Total mortgage-backed securities at market value	$	2,030	$	10,235	$	30	$	15	$	15	$	12,325
U.S. Corporate and Asset-backed Fixed Income Portfolios
Market Value at December 31, 2014	S&P Credit Rating
	Investment Grade
	AAA		AA		A		BBB		Total
Asset-backed	$	498	$	73	$	-	$	-	$	571
Banks		-		3		2,140		300		2,443
Basic Materials		-		3		97		332		432
Communications		-		47		499		784		1,330
Consumer, Cyclical		-		124		356		470		950
Consumer, Non-Cyclical		58		613		1,012		714		2,397
Diversified Financial Services		-		45		294		114		453
Energy		31		35		173		829		1,068
Industrial		-		345		443		367		1,155
Utilities		-		10		631		430		1,071
All Others		64		137		562		596		1,359
Total	$	651	$	1,435	$	6,207	$	4,936	$	13,229
Market Value at December 31, 2014			S&P Credit Rating
			Below Investment Grade
			BB		B		CCC		Total
Asset-backed			$	-	$	3	$	11	$	14
Banks				1		6		-		7
Basic Materials				129		123		6		258
Communications				556		536		7		1,099
Consumer, Cyclical				466		591		23		1,080
Consumer, Non-Cyclical				511		873		22		1,406
Diversified Financial Services				120		65		3		188
Energy				635		257		19		911
Industrial				344		370		7		721
Utilities				229		50		-		279
All Others				327		323		12		662
Total			$	3,318	$	3,197	$	110	$	6,625

Investments 2 Page 15

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

Non-U.S. Fixed Income Portfolio

December 31, 2014

Non-U.S. Government Securities	Market Value by S&P Credit Rating
	AAA		AA		A		BBB		BB and below		Total
United Kingdom	$	1,119	$	-	$	-	$	-	$	-	$	1,119
Republic of Korea		-		746		44		-		-		790
Federative Republic of Brazil		-		-		-		660		-		660
United Mexican States		-		-		374		135		-		509
Canada		483		-		-		-		-		483
Kingdom of Thailand		-		-		407		-		-		407
Province of Ontario		-		373		-		-		-		373
Province of Quebec		-		-		263		-		-		263
Japan		-		243		-		-		-		243
Germany		200		-		-		-		-		200
Other Non-U.S. Government Securities		617		972		314		415		470		2,788
Total	$	2,419	$	2,334	$	1,402	$	1,210	$	470	$	7,835
Non-U.S. Corporate Securities	Market Value by S&P Credit Rating
	AAA		AA		A		BBB		BB and below		Total
United Kingdom	$	129	$	59	$	715	$	506	$	212	$	1,621
Canada		127		118		286		379		137		1,047
United States		2		88		92		215		169		566
Australia		84		99		225		88		46		542
Netherlands		29		148		173		136		32		518
France		47		51		209		140		61		508
Germany		122		19		140		106		33		420
Switzerland		47		16		72		90		66		291
Euro Supranational		212		45		-		-		-		257
China		-		148		64		26		9		247
Other Non-U.S. Corporate Securities		112		224		933		641		443		2,353
Total	$	911	$	1,015	$	2,909	$	2,327	$	1,208	$	8,370

Non-U.S. Corporate Investment Portfolio

Countries represent the ultimate parent company’s country of risk. Non-U.S. corporate securities could be issued by foreign subsidiaries of U.S. corporations.

Investments 3 Page 16

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

          Fixed Maturity Investment Portfolio

          Top 10 Global Corporate Exposures

	December 31, 2014	Market Value	Rating
1	JP Morgan Chase & Co	$                447	A
2	General Electric Co	419	AA+
3	Goldman Sachs Group Inc	347	A-
4	Wells Fargo & Co	270	A+
5	HSBC Holdings Plc	265	A+
6	Verizon Communications Inc	233	BBB+
7	Bank of America Corp	231	A-
8	Morgan Stanley	217	A-
9	AT&T Inc	216	A-
10	Citigroup Inc	206	A-

Investments 4 Page 17

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

	Three months ended December 31, 2014								Year ended December 31, 2014
	Net Realized  Gains (Losses) (1)			Net Unrealized Gains (Losses)			Net                 Impact		Net Realized  Gains (Losses)(1)			Net Unrealized Gains (Losses)			Net         Impact
Fixed maturities	$	(26	)	$	94		$	68	$	23		$	732		$	755
Fixed income derivatives		(54	)		-			(54)		(107	)		-			(107)
Total fixed maturities		(80	)		94			14		(84	)		732			648
Public equity		13			7			20		(47	)		77			30
Private equity		44			(1	)		43		187			42			229
Total equity		57			6			63		140			119			259
Mark-to-market losses from derivative transactions (2)		(155	)		-			(155)		(386	)		-			(386)
Foreign exchange gains (losses)(2)		2			-			2		(40	)		-			(40)
Other		10			-			10		2			-			2
Partially-owned entities(3)		5			-			5		1			(7	)		(6)
Income tax expense(4)		111			6			117		100			167			267
Net gains (losses)	$	(272	)	$	94		$	(178)	$	(467	)	$	677		$	210

(1) Other-than-temporary impairments for the quarter includes $40 million for fixed maturities and $1 million for public equity. Year to date other-than-temporary impairments includes $57 million for fixed maturities, $3 million for private equity, and $8 million for public equity.

(2) Includes $153 million of realized losses from variable annuity reinsurance for the quarter which comprises $91 million in mark-to-market losses from derivative transactions and $62 million of losses on applicable hedges. The variable annuity reinsurance foreign exchange gains for the quarter were $2 million. For the year, the $385 million of realized losses from variable annuity reinsurance comprises $217 million in mark-to-market losses from derivative transactions and $168 million of losses on applicable hedges. The variable annuity reinsurance foreign exchange gains for the year were $4 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).

(4) Q4 2014 and full year 2014 include $115 million due to a realized deferred tax charge related to unrealized foreign exchange losses.

	Three months ended December 31, 2013									Year ended December 31, 2013
	Net Realized  Gains (Losses) (5)			Net Unrealized Gains (Losses)			Net         Impact			Net Realized  Gains (Losses)(5)			Net Unrealized Gains (Losses)			Net         Impact
Fixed maturities	$	6		$	(219	)	$	(213)		$	90		$	(1,880	)	$	(1,790)
Fixed income derivatives		16			-			16			78			-			78
Total fixed maturities		22			(219	)		(197)			168			(1,880	)		(1,712)
Public equity		2			-			2			15			(41	)		(26)
Private equity		27			17			44			90			51			141
Total equity		29			17			46			105			10			115
Mark-to-market gains from derivative transactions(6)		149			-			149			298			-			298
Foreign exchange gains (losses)(6)		(16	)		-			(16)			29			-			29
Other		(3	)		2			(1)			(3	)		3			-
Partially-owned entities(7)		(2	)		-			(2)			-			-			-
Income tax expense (benefit)		5			(55	)		(50)			56			(408	)		(352)
									��
Net gains (losses)	$	174		$	(145	)	$	29		$	541		$	(1,459	)	$	(918)

(5) Other-than-temporary impairments for the quarter includes $7 million for fixed maturities and $1 million for public equity. Year to date other-than-temporary impairments includes $18 million of fixed maturities, $2 million for private equity, and $2 million for public equity.

(6) Includes $149 million of realized gains from variable annuity reinsurance for the quarter which comprises $315 million in mark-to-market gains from derivative transactions (including a $92 million realized gain related to an out-of-period adjustment for an error in a market valuation model), net of $166 million of losses on applicable hedges. The variable annuity reinsurance foreign exchange gains for the quarter were $6 million. For the year, mark-to-market gains from derivative transactions of $298 million includes $299 million of realized gains from variable annuity reinsurance which comprises $878 million in mark-to-market gains from derivative transactions, net of $579 million of losses on applicable hedges. The variable annuity reinsurance foreign exchange gains for the year were $51 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).

Investment Gains (Losses) Page 18

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

	December 31           2014		September 30           2014		June 30           2014		March 31           2014		December 31           2013		December 31           2012
Total short-term debt (1) (2)	$	2,552	$	1,851	$	1,851	$	1,901	$	1,901	$	1,401
Total long-term debt		3,357		4,057		4,057		3,808		3,807		3,360
Total debt	$	5,909	$	5,908	$	5,908	$	5,709	$	5,708	$	4,761
Total trust preferred securities	$	309	$	309	$	309	$	309	$	309	$	309
Total shareholders’ equity	$	29,587	$	30,017	$	30,325	$	29,369	$	28,825	$	27,531
Total capitalization	$	35,805	$	36,234	$	36,542	$	35,387	$	34,842	$	32,601
Tangible capital(3)	$	30,081	$	30,809	$	31,020	$	30,005	$	29,438	$	27,626
Leverage ratios
Debt/ total capitalization		16.5%		16.3%		16.2%		16.1%		16.4%		14.6%
Debt plus trust preferred securities/ total capitalization		17.4%		17.2%		17.0%		17.0%		17.3%		15.6%
Debt/ tangible capital		19.6%		19.2%		19.0%		19.0%		19.4%		17.2%
Debt plus trust preferred securities/ tangible capital		20.7%		20.2%		20.0%		20.1%		20.4%		18.4%

Note: As of December 31, 2014, there was $0.5 billion usage of credit facilities on a total commitment of $1.0 billion. We did not renew our $425 million funds at Lloyd’s capital facilities in December 2014. We elected instead to satisfy our collateral obligations primarily with insurance trusts supported by our investment portfolio.

(1) Repurchase agreements in the amount of $150 million matured during the quarter, and there were new repurchase agreements in the amount of $151 million.

(2) In November 2014, we reclassified $700 million of 2.6 percent senior notes, due to mature in less than one year (November 2015), 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 19

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
	2014		2013		2014		2013
Numerator
Operating income to common shares	$	827	$	824	$	3,320	$	3,217
Adjusted net realized gains (losses), net of income tax		(272)		174		(467)		541
Net income	$	555	$	998	$	2,853	$	3,758
Rollforward of Common Shares Outstanding
Shares - beginning of period		332,111,557		340,069,972		339,793,935		340,321,534
Repurchase of shares(1)		(3,839,174)		(564,911)		(13,982,358)		(3,266,531)
Shares issued, excluding option exercises		66,123		12,988		1,336,161		1,080,261
Issued for option exercises		321,180		275,886		1,511,948		1,658,671
Shares - end of period		328,659,686		339,793,935		328,659,686		339,793,935
Denominator
Weighted average shares outstanding		331,124,128		340,897,890		335,609,899		340,906,490
Effect of other dilutive securities		3,464,261		3,309,307		3,376,388		3,241,085
Adj. wtd. avg. shares outstanding and assumed conversions		334,588,389		344,207,197		338,986,287		344,147,575
Basic earnings per share
Operating income	$	2.50	$	2.41	$	9.89	$	9.43
Adjusted net realized gains (losses), net of income tax		(0.82)		0.52		(1.39)		1.59
Net income	$	1.68	$	2.93	$	8.50	$	11.02
Diluted earnings per share
Operating income	$	2.47	$	2.39	$	9.79	$	9.35
Adjusted net realized gains (losses), net of income tax		(0.81)		0.51		(1.37)		1.57
Net income	$	1.66	$	2.90	$	8.42	$	10.92

(1) For the period January 1, 2015 through January 26, 2015 we repurchased 750 thousand shares totaling $84 million, pursuant to a plan adopted under SEC Rule 10b5-1 and in accordance with the provisions of SEC Rule 10b-18.

Earnings per share Page 20

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

Reconciliation of Book Value per Common Share

	December 31           2014		September 30           2014		June 30           2014		March 31           2014		December 31           2013
Shareholders’ equity	$	29,587	$	30,017	$	30,325	$	29,369	$	28,825
Less: goodwill and other intangible assets		5,724		5,425		5,522		5,382		5,404
Numerator for tangible book value per share	$	23,863	$	24,592	$	24,803	$	23,987	$	23,421
Book value - % change over prior quarter(1)		-1.4%		-1.0%		3.3%		1.9%		2.2%
Tangible book value - % change over prior quarter (1)		-3.0%		-0.8%		3.4%		2.4%		2.9%
Denominator		328,659,686		332,111,557		336,225,589		337,974,644		339,793,935
Book value per common share	$	90.02	$	90.38	$	90.19	$	86.90	$	84.83
Tangible book value per common share	$	72.61	$	74.05	$	73.77	$	70.97	$	68.93
Reconciliation of Book Value
Shareholders’ equity, beginning of quarter	$	30,017	$	30,325	$	29,369	$	28,825	$	28,218
Operating income		827		891		825		777		824
Adjusted net realized gains (losses), net of tax		(272)		(106)		(46)		(43)		174
Net unrealized gains (losses), net of tax		94		(290)		453		420		(145)
Repurchase of shares		(430)		(450)		(237)		(332)		(57)
Dividend declared on common shares		(223)		(223)		(223)		(256)		(174)
Cumulative translation, net of tax		(520)		(202)		119		(41)		(66)
Pension liability		9		5		(3)		(5)		(11)
Other (2)		85		67		68		24		62
	$	29,587	$	30,017	$	30,325	$	29,369	$	28,825

(1) At December 31, 2014, book value increased 2.6% and tangible book value increased 1.9% from December 31, 2013.

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

Reconciliation Book Value Page 21

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

Regulation G - Non-GAAP Financial Measures

In presenting our results, we 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).

We provide financial measures such as gross premiums written, 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.

Adjusted net realized gains (losses) is a non-GAAP financial measure that excludes realized gains and losses on crop derivatives. These derivatives were purchased to provide economic benefit, in a manner similar to reinsurance protection, in the event that a significant decline in commodity pricing will impact underwriting results. We view gains and losses on these derivatives as part of the results of our underwriting operations and therefore realized gains and losses from these derivatives are reclassified to Adjusted losses and loss expenses (a non-GAAP financial measure). Adjusted losses and loss expenses include gains and losses on crop derivatives. P&C loss and loss expense ratio and P&C combined ratio (both non-GAAP financial measures) include adjusted losses and loss expenses in the ratio numerator. A reconciliation of GAAP combined ratio to P&C combined ratio is provided on page 24.

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). P&C underwriting income is a non-GAAP financial measure which includes Adjusted losses and loss expenses. Insurance – North American Agriculture underwriting income includes gains (losses) on crop derivatives. 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.

Operating income or income excluding adjusted 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 adjusted 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 adjusted net realized gains (losses) should not be viewed as a substitute for net income determined in accordance with GAAP.

Other income (expense) – operating is a non-GAAP financial measure and excludes the portion of net realized gains and losses related to unconsolidated entities from other income (expense). These gains and losses are reported as Net realized gains (losses) and represent the non-operating activities of entities where we hold more than an insignificant percentage of the investee’s shares. We exclude these gains and losses from other income (expense) to enhance the understanding of our core results of operations as they are heavily influenced by, and fluctuate in part according to market conditions. A reconciliation of Consolidated Other income (expense) on a GAAP basis to Consolidated Other income (expense) - operating is provided on page 24.

P&C combined ratio excluding catastrophe losses and prior period development (PPD) is a non-GAAP financial measure. The ratio numerator includes adjusted 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.

P&C loss and loss expense ratio excluding the impact of catastrophe losses and PPD is a non-GAAP financial measure. The loss ratio numerator includes adjusted 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.

P&C expense ratio excluding accident and health (A&H) is a non-GAAP financial measure and 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.

Global P&C performance metrics are non-GAAP financial measures and comprise consolidated operating results (including corporate) and exclude the operating results of the company’s Life and Insurance – North American Agriculture segments. We believe that these measures are useful and meaningful to investors as they are used by management to assess the company’s global P&C operations which are the most economically similar. We exclude the Insurance – North American Agriculture and Life segments because the results of these businesses do not always correlate with the results of our global P&C operations.

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 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 operating income is an annualized non-GAAP financial measure and is calculated as operating income divided by average shareholders’ equity, as adjusted, for the period. 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 effective tax rate is a non-GAAP financial measure. The numerator excludes tax on adjusted net realized gains (losses). The denominator excludes adjusted net realized gains (losses), before tax. We exclude adjusted 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 a non-GAAP financial measure and 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 21. Tangible book value per common share excluding 2014 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 2014 acquisitions of the large corporate P&C business of Itaú Seguros, S.A. and The Siam Commercial Samaggi Insurance PCL in order to adjust for the distortive effect of acquisitions. In addition, we disclose per share measures that exclude the impact of foreign currency fluctuations during the year in order to adjust for the distortive effects of fluctuations in exchange rates.

Reconciliation Non-GAAP Page 22

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

Regulation G - Non-GAAP Financial Measures (continued)

Operating income

Operating income is a common performance measure for insurance companies and is presented throughout this report.

The following table presents the reconciliation of Net income to Operating income:

															Full Year		Full Year
	4Q-14			3Q-14			2Q-14			1Q-14			4Q-13		2014		2013
Net income, as reported	$	555		$	785		$	779		$	734		$	998	$	2,853	$	3,758
Adjusted net realized gains (losses)		(210	)		(165	)		(81	)		(102	)		154		(558)		505
Net realized gains (losses) related to unconsolidated entities(1)		49			55			36			51			25		191		92
Income tax expense (benefit) on adjusted net realized gains (losses)		111			(4	)		1			(8	)		5		100		56
Operating income	$	827		$	891		$	825		$	777		$	824	$	3,320	$	3,217
(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 Operating income (loss) of each segment and Corporate:
															Full Year		Full Year
	4Q-14			3Q-14			2Q-14			1Q-14			4Q-13		2014		2013
Insurance – North American P&C	$	372		$	337		$	378		$	411		$	402	$	1,498	$	1,446
Insurance – Overseas General		294			348			282			239			279		1,163		1,094
Global Reinsurance		127			145			146			144			145		562		576
Corporate		(87	)		(68	)		(72	)		(69	)		(68)		(296)		(269)
Global P&C (including Corporate)		706			762			734			725			758		2,927		2,847
Insurance – North American Agriculture		45			57			19			(25	)		(20)		96		63
Consolidated Results (including Corporate) Excluding Life Segment		751			819			753			700			738		3,023		2,910
Life		76			72			72			77			86		297		307
Consolidated operating income	$	827		$	891		$	825		$	777		$	824	$	3,320	$	3,217
Operating ROE
The following table presents the reconciliation of ROE to Operating ROE:
															Full Year		Full Year
	4Q-14												4Q-13		2014		2013
Net income	$	555											$	998	$	2,853	$	3,758
Operating income	$	827											$	824	$	3,320	$	3,217
Equity - beginning of period, as reported	$	30,017											$	28,218	$	28,825	$	27,531
Less: unrealized gains (losses) on investments, net of deferred tax		1,757												1,319		1,174		2,633
Equity - beginning of period, as adjusted	$	28,260											$	26,899	$	27,651	$	24,898
Equity - end of period, as reported	$	29,587											$	28,825	$	29,587	$	28,825
Less: unrealized gains (losses) on investments, net of deferred tax		1,851												1,174		1,851		1,174
Equity - end of period, as adjusted	$	27,736											$	27,651	$	27,736	$	27,651
Average equity, as reported	$	29,802											$	28,522	$	29,206	$	28,178
Average equity, as adjusted	$	27,998											$	27,275	$	27,694	$	26,275
Operating ROE		11.8%												12.1%		12.0%		12.2%
ROE		7.5%												14.0%		9.8%		13.3%

Reconciliation Non-GAAP 2 Page 23

ACE Limited   Non-GAAP Financial Measures - 3   (in millions of U.S. dollars, except ratios)   (Unaudited)

Regulation G - Non-GAAP Financial Measures (continued)

Operating effective tax rate

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

	4Q-14		3Q-14		2Q-14		1Q-14		4Q-13		Full Year   2014		Full Year   2013
Tax expense, as reported	$	232	$	176	$	133	$	93	$	88	$	634	$	480
Tax expense (benefit) on adjusted net realized gains (losses)(1)		111		(4)		1		(8)		5		100		56
Tax expense, adjusted	$	121	$	180	$	132	$	101	$	83	$	534	$	424
Income before tax, as reported	$	787	$	961	$	912	$	827	$	1,086	$	3,487	$	4,238
Less: adjusted realized gains (losses)		(210)		(165)		(81)		(102)		154		(558)		505
Less: realized gains (losses) related to unconsolidated entities		49		55		36		51		25		191		92
Operating income before tax	$	948	$	1,071	$	957	$	878	$	907	$	3,854	$	3,641
Effective tax rate		29.5%		18.3%		14.6%		11.3%		8.1%		18.2%		11.3%
Adjustment for tax impact of adjusted net realized gains (losses)		-16.8%		-1.4%		-0.9%		0.2%		1.1%		-4.3%		0.3%
Operating effective tax rate		12.7%		16.9%		13.7%		11.5%		9.2%		13.9%		11.6%
(1) Q4 2014 and full year 2014 include $115 million due to a deferred tax charge related to unrealized foreign exchange losses. We exclude the additional tax expense from operating income because it was related to foreign currencies which could fluctuate significantly between periods and we view this similarly to unrealized gains (losses) which may reverse over time. Other income (expense) - operating The following table presents the reconciliation of Consolidated Other income (expense) on a GAAP basis to Consolidated Other income (expense) - operating. Other income (expense) – operating is a non-GAAP financial measure which excludes gains (losses) from fair value changes in separate account assets that do not qualify for separate account reporting under GAAP and the portion of net realized gains and losses related to unconsolidated entities. Gains (losses) from fair value changes in separate account assets are reclassified from Other income (expense) for purposes of presenting Life underwriting income, as the offsetting movement in the separate account liabilities is included in Policy benefits. Net realized gains (losses) related to unconsolidated entities is excluded from operating income in order to enhance the understanding of our core results of operations as they are heavily influenced by, and fluctuate in part according to market conditions.
	4Q-14		3Q-14		2Q-14		1Q-14		4Q-13		Full Year   2014		Full Year   2013
Consolidated GAAP Other income (expense):
Consolidated excluding Life segment	$	18	$	22	$	12	$	30	$	4	$	82	$	(18)
Life segment		3		(3)		13		(13)		3		-		3
Consolidated		21		19		25		17		7		82		(15)
Less: Gains (losses) from fair value changes in separate account assets
Consolidated excluding Life segment		-		-		-		-		-		-		-
Life segment		(3)		(6)		17		(6)		9		2		16
Consolidated		(3)		(6)		17		(6)		9		2		16
Less: Net realized gains (losses) related to unconsolidated entities
Consolidated excluding Life segment		43		51		38		53		27		185		87
Life segment		6		4		(2)		(2)		(2)		6		5
Consolidated		49		55		36		51		25		191		92
Consolidated Other income (expense) - operating:
Consolidated excluding Life segment		(25)		(29)		(26)		(23)		(23)		(103)		(105)
Life segment		-		(1)		(2)		(5)		(4)		(8)		(18)
Consolidated	$	(25)	$	(30)	$	(28)	$	(28)	$	(27)	$	(111)	$	(123)
P&C combined ratio The following table presents the reconciliation of GAAP combined ratio to P&C combined ratio. The P&C combined ratio includes the impact of realized gains and losses on crop derivatives. These derivatives were purchased to provide economic benefit, in a manner similar to reinsurance protection, in the event that a significant decline in commodity pricing will impact underwriting results. We view gains and losses on these derivatives as part of the results of our underwriting operations.
	4Q-14		3Q-14		2Q-14		1Q-14		4Q-13		Full Year   2014		Full Year   2013
GAAP combined ratio		88.5%		87.3%		87.7%		88.8%		89.3%		88.1%		88.0%
Impact of gains and losses on crop derivatives		0.0%		-1.0%		-0.2%		0.0%		0.0%		-0.4%		0.0%
P&C combined ratio		88.5%		86.3%		87.5%		88.8%		89.3%		87.7%		88.0%

Reconciliation Non-GAAP 3 Page 24

ACE Limited   Glossary

ACE Limited Consolidated comprises all segments including Corporate.

Operating return on equity (ROE) or ROE calculated using income excluding adjusted net realized gains (losses): Operating income or income excluding adjusted 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 ratio: The sum of the loss and loss expense ratio, acquisition cost ratio and the administrative expense ratio excluding life business.

Operating effective tax rate: Income tax expense excluding tax expense (benefit) on adjusted net realized gains (losses) divided by income excluding adjusted net realized gains (losses) before tax.

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.

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

Average market yield of fixed maturities: Weighted average yield to maturity of our fixed income portfolio based on the market prices of the holdings as of that date.

Average yield on invested assets: Net investment income divided by average cost of fixed maturities and other investments, and average market value of equity securities.

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

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

NM: Not meaningful.

Glossary Page 25