Exhibit 99.2

                        [Letterhead of ACE Limited]


May 7, 1999


Dear ACE Shareholder:

At a meeting on May 7, 1999, your Board of Directors adopted a shareholder
rights plan. The plan provides for a distribution of one Right for each
ordinary share that you own. We have enclosed a summary description of the
principal features of this plan.

The purpose of the shareholder rights plan is to encourage a potential
buyer to negotiate directly with the Board and to provide the Board with
greater leverage in such negotiations in order to maximize shareholder
value. The plan is not being implemented in response to any known takeover
plan.

The Rights do not become exercisable, and no separate certificates will be
issued for the Rights, except in the special circumstances described in the
enclosed summary. Instead, the Rights will be traded automatically when you
buy or sell ordinary shares of the company. Issuance of the Rights has no
dilutive effect, will not affect earnings per share, will not be taxable to
the company or its shareholders and will not change the way in which our
ordinary shares are traded.

We are very excited about ACE's future and we want to be certain our
shareholders have every opportunity to participate fully in our future.
Adoption of the shareholder rights plan reflects the Board's commitment to
that goal.

Sincerely,



Brian Duperreault
Chairman, President and
  Chief Executive officer

Enclosure



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