Exhibit 99.1

         ACE Limited and Capital Re Announce Closing of Acquisition

HAMILTON, Bermuda -- Dec. 30, 1999 -- ACE Limited (NYSE:ACL) and Capital Re
Corporation (NYSE:KRE) announced today that ACE has completed the
acquisition of Capital Re. ACE issued approximately 20.8 million ordinary
shares, and paid approximately $110.3 million in cash in the transaction.

     Brian Duperreault, chairman and chief executive officer of ACE, said:
"This transaction adds significant depth and expertise to ACE's financial
reinsurance capabilities and represents a strategic complement to our
diversified book of business. The acquisition of Capital Re establishes ACE
as one of the premier financial guaranty reinsurers."

     Jerry Jurschak, president and chief executive officer of Capital Re,
commented: "Capital Re is pleased to complete its merger with ACE Limited.
Our positive business environment for reinsuring financial products is
significantly furthered by ACE's broad product offering, substantial
balance sheet, and worldwide presence."

     Dominic Frederico has been appointed chairman of Capital Re
Corporation, effective today. In commenting on the transaction, Mr.
Frederico said, "Capital Re will facilitate ACE's product development to
meet the diverse needs of today's marketplace and further enhance our
capabilities to address the convergence of financial products and insurance
products."

     Capital Re is a specialty reinsurance group providing innovative
solutions to problems of financial risk and risk management. Capital Re's
two principal divisions, financial guaranty and financial risks, are
engaged in the business of municipal and non-municipal financial guaranty
reinsurance, mortgage guaranty reinsurance, title reinsurance, trade credit
reinsurance, life, accident & health, annuity reinsurance and structured
financial products.

     The ACE Group of Companies provides insurance and reinsurance for a
diverse group of clients. The ACE Group conducts its business on a global
basis with operating subsidiaries in nearly 50 countries. Additional
information can be found at: www.acelimited.com.

CONTACT:  ACE Limited, Hamilton                Capital Re Corporation, New York
          Investor:                            David A. Buzen, 212/974-0100
          Helen M. Wilson, 441/299-9283        or
          or                                   Cathy Bailey, 212/974-0100
          Media:
          Wendy Davis Johnson, 441/299-9347