Skip to main content

ACE Limited Announces Plans To Issue Ordinary Shares

Hamilton, Bermuda: 25 October 2001 -ACE Limited

(NYSE:ACE, BSX:ACL.BH) announced today that it intends, subject to market and other conditions, to commence a public offering of approximately $1

billion of its ordinary shares, plus up to an additional $150 million of ordinary shares to cover over-allotments. Salomon Smith Barney Inc.

(sole book-running manager), J.P. Morgan Securities Inc. and Banc of America Securities LLC will act as managers for the offering.

ACE expects to use the net proceeds of the offering of the ordinary shares to take advantage of opportunities in the global insurance and reinsurance markets becoming available as a result of recent events which have depleted industry capital and materially accelerated demand for insurance and reinsurance. ACE intends to deploy the new capital by, among other things, expanding its net underwriting capacity, either through internal growth and/or through

acquisitions of lines of business or companies.

Copies of the prospectus, including the prospectus supplement, may be obtained when available from Salomon Smith Barney, Brooklyn Army

Terminal, 140 58th Street, 5th Floor, Brooklyn, NY 11220 (telephone: 718-765-6732).

This press release shall not constitute an offer to sell or the

solicitation of an offer to buy, nor shall there be any sale of these securities in any state in which such offer, solicitation or sale

would be unlawful prior to registration or qualification under the securities laws of any such state. A shelf registration statement

relating to the ordinary shares that ACE intends to offer, has previously been filed with, and declared effective by, the Securities

and Exchange Commission. Any offer, if at all, will be made only by means of a prospectus, including a prospectus supplement, forming a

part of the effective registration statement.

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