This page includes Regulatory news filings supplied by issuers listed on the BSX. Please note the BSX is not responsible for the content, accuracy or completeness of announcements filed by issuers and disclaims all liability for any loss arising from reliance on information contained within issuer announcements.

ACE Limited Announces $300 Million Preferred Share Offering

06 6 2003

Hamilton, Bermuda: May 5, 2003 - ACE Limited (NYSE: ACE) announced today an offering to sell $300 million in preferred shares. The preferred shares will be issued in the form of depositary shares. ACE expects to use the net proceeds from the offering to make additional capital contributions to certain of its subsidiaries and for general corporate purposes. This offering will be the first step in ACE's previously stated capital raising efforts, which will raise a total of $500 million. This capital raising process will not include common equity or equity-linked securities.

Citigroup Global Markets Inc. and Merrill Lynch & Co. are acting as joint-book running managers for the offering. The offering will be made pursuant to a prospectus supplement to ACE's currently effective shelf registration statement.

Copies of the prospectus supplement, when available, may be obtained from Citigroup Global Markets Inc., Brooklyn Army Terminal, 140 58th Street, 8th Floor, Brooklyn, NY, 11220 or Merrill Lynch, Pierce, Fenner & Smith Incorporated, 4 World Financial Center, New York, NY 10013.

This news release does not constitute an offer to sell or the solicitation of an offer to buy nor will there be any sale of these preference shares 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.

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.

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 financing plans could be affected by market conditions. In addition, the Company's forward-looking statements could be affected by competition, pricing and policy term trends, the levels of new and renewal business achieved, market acceptance, changes in demand, the frequency of unpredictable catastrophic events, actual loss experience, uncertainties in the reserving or settlement process, the impact of aggregate policy coverage limits, new theories of liability, judicial and legislative developments, litigation tactics, the amount and timing of reinsurance recoverable, rating agency action, possible terrorism or the outbreak and effects of war and economic, political, regulatory, insurance and reinsurance business conditions, as well as management's response to these factors, 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.