FOR IMMEDIATE RELEASE                                             EXHIBIT 99.1

                                      Investor Contact:     Helen M. Wilson
                                                            (441) 299-9283
                                      Media Contact:        Wendy Davis Johnson

                                                            (441) 299-9347

   HAMILTON, Bermuda--(BUSINESS WIRE)--Jan. 8, 2002--ACE Limited (NYSE:ACE)
today announced that its fourth quarter net operating income will fall
below expectations due to an increase of approximately $80 million, after
taxes, in property losses incurred in its European Commercial Property
portfolio together with a $50 million charge taken to strengthen loss
reserves principally in its International Casualty Operations.

   Mr. Brian Duperreault, Chairman and Chief Executive Officer, said: "We
experienced a pattern of increased frequency and severity within our
European Commercial Property portfolio. In response to these adverse
results we have tightened underwriting controls and significantly increased
prices. We believe the changes made will permit us to realize our financial
objectives for this unit in 2002. We also carefully reviewed the
development of our international casualty portfolio and determined an
increase in reserves was warranted. The balance of our business segments
have performed as expected and we do not expect the issues affecting the
fourth quarter to carry forward into the new year."

   ACE Limited expects to report its quarterly earnings before the opening
of business on Wednesday, February 13, 2002. ACE management will then
provide its customary supplemental commentary in a conference call and
webcast scheduled for 9:30 a.m. EST on the same date.

   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: http://www.acelimited.com.

   Application of the Safe Harbor of the Private Securities
Litigation Reform Act of 1995:

   Any forward-looking statements made in this press release reflect the
Company's current views with respect to future events and financial
performance and are made pursuant to the safe harbor provisions of the
Private Securities Litigation Reform Act of 1995. Such statements involve
risks and uncertainties, which may cause actual results to differ
materially from those set forth in these statements. For example, the
Company's ability to achieve its objectives may be affected by competition
in the industry, levels of new and renewal business achieved, market
acceptance, the frequency of unpredictable catastrophic events, actual loss
experience, the amount and timing of reinsurance recoverables, and
economic, market, legislative, regulatory, Lloyd's, insurance and
reinsurance business conditions and other factors identified in the
Company's filings with the Securities and Exchange Commission. Readers are
cautioned not to place undue reliance on these forward-looking statements,
which speak only as of the dates on which they are made. The Company
undertakes no obligation to publicly update or revise any forward-looking
statements, whether as a result of new information, future events or
otherwise.