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Ace Limited Prices $500 Million Preferred Share Offering

HAMILTON, Bermuda -- May 7, 2003 -- ACE Limited (NYSE: ACE) today announced that it has agreed to sell in a public offering 20 million 7.80% Cumulative Redeemable Preferred Shares, Series C, in the form of depositary shares, for $25.00 per depositary share. ACE also granted the underwriters of the offering an option to purchase an additional 3 million shares at the same price to cover over allotments. ACE intends to use the net proceeds of the offering to make additional capital contributions to some of its subsidiaries and for general corporate purposes. This completes ACE's previously announced financing plans. No further capital raising activities are anticipated at this time.

The shares, which will trade on the New York Stock Exchange under the symbol "ACE PrC", will have an annual dividend rate of 7.80%. The first quarterly dividend will be payable on September 1, 2003. The shares will not be convertible into or exchangeable for ACE's ordinary shares. ACE may redeem these shares at any time after May 30, 2008 at a redemption value of $25.00 per depositary share. ACE may also redeem the shares at any time under certain limited circumstances.

Citigroup Global Markets Inc. and Merrill Lynch are acting as joint book-running managers for the offering. This press release does not constitute an offer to sell or the solicitation of an offer to buy any of the preference shares or any other securities, nor will there be any sale of the preference shares or any other securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

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.