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ACE Limited Announces Dividend Reinvestment Plan

Hamilton, Bermuda: 27 December 2000 - ACE Limited

(NYSE:ACL, BSX: ACE.BH) today announced that it has established a Dividend Reinvestment Plan. Through the Plan, current shareholders are offered

the opportunity to purchase ordinary shares through reinvestment of their dividends. There will be no service fees, brokerage commissions

or other charges associated with these purchases. Questions should be directed to the Plan Administrator, The Bank of New York at (800)

524-4458. Information and an enrollment card will be mailed shortly to holders of record of the Company's ordinary shares.

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.