Prospectus Supplement No. 1 dated May 4, 1999 Rule 424(b)(3)
To Prospectus dated August 14, 1998 File No.:333-60985
14,328,010 Shares
ACE LIMITED
Ordinary Shares
(par value 0.041666667)
This Supplement No. 1 supplements the information contained in the
prospectus of ACE Limited, a Cayman Islands company, dated August 14, 1998.
This Supplement No. 1 adds selling shareholders who were not named in the
prospectus.
ACE has been informed by Insurance Partners Charman (Bermuda),
L.P., a Bermuda limited partnership ("IPC"), and Insurance Partners
Offshore (Bermuda), L.P., a Bermuda limited partnership ("IPO"), that they
intend to make pro rata distributions (the "Distributions") of an aggregate
of 7,952,613 ordinary shares to their direct and indirect partners (each a
"Partner"). The 7,952,613 ordinary shares represent all of the ordinary
shares registered on behalf of IPC and IPO in the prospectus.
The following table sets forth the names of the Partners offering
ordinary shares under the prospectus, the estimated number of ordinary
shares to be beneficially owned by each such Partner after giving effect to
the Distributions and the number of ordinary shares which may be offered
for sale pursuant to the prospectus by each such Partner. ACE has been
informed by IPC and IPO that none of the Partners has held any position,
office or other material relationship with ACE or any of its affiliates
within the past three years other than as a result of his, her or its
ownership of ordinary shares (or securities convertible into or exercisable
for ordinary shares). None of the figures below for any selling shareholder
individually represents 1% or more of ACE's outstanding ordinary shares.
The ordinary shares listed in the following table may be offered
from time to time by the Partners named below. However, such Partners are
under no obligation to sell all or any portion of such ordinary shares, nor
are the Partners obligated to sell any such ordinary shares immediately
under the prospectus. The actual number of ordinary shares that will be
beneficially owned by each Partner after giving effect to the Distributions
may differ from the numbers listed below. In addition, although the total
estimated number of ordinary shares to be distributed to the Partners
listed in the table below may exceed the total number of ordinary shares
held by IPC and IPO, the actual number of ordinary shares to be distributed
to the Partners will not. Because the Partners may sell all or part of
their ordinary shares, no estimate
can be given as to the number of ordinary shares that will be held by any
Partner upon termination of any offering made hereby.
Estimated
Number of Estimated
Ordinary Shares Number of
Beneficially Owned Ordinary Shares
Name of Partner Prior to Offering Offered Hereby
Aon Corporation (1) 318,973 318,973
A.P. Development & Services Corporation 51,036 51,036
American States Insurance Company 63,795 63,795
BancBoston Investments Inc. 127,589 127,589
Calconn Private Equities, L.P. 25,386 25,386
Carlisle Ventures, Inc. 382,768 382,768
Chase Manhattan Investment Holdings, L.P. 191,994 191,994
Cornerstone Private Equity, L.P. 318,973 318,973
Credit Suisse First Boston Fund
Investments 1994, L.P. (2) 127,589 127,589
DLJ Fund Investment Partners, L.P. 63,795 63,795
Executive Risk Indemnity Inc. 63,795 63,795
Executive Risk Inc. 6,386 6,386
Steven M. Gluckstern 82,061 82,061
Guaranty National Insurance Company 19,138 19,138
Security Insurance Company of Hartford 44,656 44,656
Richard M. Haverland 83,378 83,378
JM Kaplan Fund, Inc. 19,040 19,040
Kaplan Choate Special Situations, L.P. 6,347 6,347
The Lincoln National Life Insurance Company(3) 258,279 255,179
Robert A. Meister 25,518 25,518
National Academy of Sciences 25,386 25,386
Estate of Michael D. Palm 82,061 82,061
Phight, L.L.C. 63,795 63,795
Source One Mortgage Services Corporation 191,384 191,384
The Board of Trustees of the
Leland Stanford Junior University 63,814 63,814
Sunapee Securities, Inc. 12,759 12,759
Trustees of the Estate of Bernice P. Bishop 318,973 318,973
Ziff Investors Partnership, L.P. II 318,973 318,973
Zurich Reinsurance (North America), Inc. 318,973 318,973
Steven D. Germain 1,914 1,914
Thomas R. Dickson 1,595 1,595
Thomas M. Fink (4) 1,914 1,914
Isaac Mashitz 1,276 1,276
Mark D. Mosca 1,276 1,276
Frank D. Pierson 2,552 2,552
Peter R. Porrino 1,276 1,276
Jay S. Ralph 1,595 1,595
Carol A. Rennie 1,914 1,914
Scott A. Roberts (5) 1,914 1,914
Richard L. Sandor 6,379 6,379
John D. Shuck 1,276 1,276
Richard E. Smith 1,595 1,595
Eileen M. Sweeney 1,276 1,276
David L. Wasserman 1,595 1,595
Bradley E. Cooper 66,183 66,183
Susan S. Fleming 9,128 9,128
Frank D. Lackner 18,783 18,783
Eric C. Rahe 6,277 6,277
Robert A. Spass 297,024 297,024
Paul H. Warren 87,196 87,196
IPC GenPar (Bermuda) MGP, Ltd. 473 473
IPC GenPar (Bermuda) SLP, Ltd. 438 438
Centre Reinsurance Services (Bermuda) Limited 73,350 73,350
Centre Reinsurance Services (Bermuda) II 157,277 157,277
Insurance Partners Charman (Bermuda), L.P. 6,095 6,095
R. David Andrews 6,057 6,057
Glenn R. August 106,528 106,528
Daniel L. Doctoroff 107,463 107,463
Jeffrey H. Freed 4,319 4,319
Steven B. Gruber 107,463 107,463
John R. Monsky 5,196 5,196
Peter G. Mulvihill 2,553 2,553
David G. Offensend 61,527 61,527
Anthony P. Scotto 17,660 17,660
Ian G. Wallace 3,884 3,884
Oak Hill Partners, Inc. 63,157 63,157
FW Group GenPar, Inc. 892 892
FW GenPar, Inc. 2,342 2,342
Group 31, Inc. 1,476 1,476
FWI Investors, Inc. 169,855 169,855
Capital Partnership 20,244 20,244
J. Taylor Crandall 69,236 69,236
Bernard J. Carl 8,098 8,098
Thomas R. Delatour 357 357
William S. Janes 2,700 2,700
John P. Grayken 2,700 2,700
Shannon A. Fairbanks 1,349 1,349
Mark A. Wolfson 2,700 2,700
David G. Brown 6,714 6,714
Acadia Partners, L.P. 491,079 491,079
Bradford E. Bernstein 2,427 2,427
William H. Bohnsack 638 638
Diane L. Murray 162 162
Scott Krase 485 485
Chase Manhattan International Finance, Ltd. 527 527
MCLP I Limited Partnership 58,889 58,889
Sheikh Abdulrahman Ali Al-Turki 122,480 122,480
Arab Insurance Group (ARIG) 61,240 61,240
Arab Investment and Management Corporation 122,480 122,480
Artal Luxembourg S.A. 122,480 122,480
Bermuda Investors Limited 61,240 61,240
Centre Reinsurance Limited 1,195,188 1,195,188
Leyton, Ltd. 1,225 1,225
Laurence Cheng 1,225 1,225
Luc Gagnon 1,225 1,225
Michael Hamer 1,531 1,531
Chase Manhattan I.P. (Bermuda) Holdings Limited 272,266 272,266
Dresdner Bank AG, Grand Cayman Branch 55,116 55,116
Inmost Holdings Ltd. 36,744 36,744
Mayfair Management Services S.A. 24,496 24,496
Nattak Corporation 36,744 36,744
Sirocco Holdings Ltd. 122,480 122,480
Insurance Partners Offshore (Bermuda), L.P. 51,973 51,973
IP/MCLP (Bermuda), Limited Partnership 394 394
(1) In addition, Aon Corporation owns options to purchase 5,000 ordinary
shares of ACE at an exercise price of $40.00 per share.
(2) An affiliate of Credit Suisse First Boston Fund Investments 1994,
L.P. served as a financial advisor to ACE in 1998 and received
customary fees for such services.
(3) In addition to the ordinary shares offered hereby, The Lincoln
National Life Insurance Company owns 3,100 ordinary shares of ACE.
(4) Mr. Fink worked as a consultant for CAT Ltd. prior to the
acquisition of CAT Ltd. by ACE in 1998.
(5) Mr. Roberts is employed by Scudder Kempner, a firm that provides
money management services for Tempest Reinsurance Company Limited,
a subsidiary of ACE.