ACE Announces Details From Brandywine Loss

Hamilton, Bermuda: December 15, 2006 -- ACE Limited  (NYSE:ACE, BSX: ACE.BH) announced today additional details from the annual internal and biennial external reviews of the Company's Brandywine run-off loss reserves, including asbestos and environmental liabilities:

    --  As a result of the internal review, the Company concluded that

        its net loss reserves for the Brandywine operations were

        adequate and, therefore, no change to the carried net reserve

        was required, while the gross loss reserves increased by

        approximately $200 million.

    --  The conclusions of the external review provided estimates of

        ultimate gross and net Brandywine liabilities that are lower

        than the same study two years ago. As a result, the difference

        in net loss reserves between the internal and external studies

        has narrowed to approximately $100 million after-tax from $180

        million after-tax two years ago.

    --  The Company's best estimate falls comfortably within the range

        of outcomes produced by the external actuarial firm.

    Philip Bancroft, ACE Limited Chief Financial Officer, commented:

"The evaluation process for our direct gross and ceded exposures is

ground-up, detailed and methodical. The process to model our ceded

exposures includes refined estimates of third party reinsurance after

allocation of detailed account and policy level information. This

approach allows a detailed assessment of the collectibility of our

reinsurance recoverable asset. The external actuaries both reviewed

our model and subsequently used it when developing their estimate."

    The Company conducts an annual internal review of Brandywine loss

reserves that includes an extensive ground-up evaluation of direct

asbestos and environmental exposures. In addition, a biennial review

is conducted by an independent actuarial consulting firm, as required

by the Pennsylvania Insurance Department, as a condition of the 1996

Brandywine restructuring order.

    The ACE Group of Companies is a global leader in insurance and

reinsurance serving a diverse group of clients. Headed by ACE Limited,

a component of the Standard & Poor's 500 stock index, the ACE Group

conducts its business on a worldwide basis with operating subsidiaries

in more than 50 countries. Additional information can be found at:

www.acelimited.com.

    Cautionary Statement Regarding Forward-Looking Statements:

    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 forward-looking statements

concerning the sufficiency of its Brandywine run-off reserves,

including asbestos and environmental liabilities, is subject to a

number of potential adverse developments including, among others, the

willingness of parties, including the Company, to settle disputes, the

impact of aggregate policy coverage limits, the impact of bankruptcies

of various asbestos producers and related businesses, new theories of

liability, uncertainties in the loss reserving and claims settlement

process, and actual loss experience. The Company's forward-looking

statements could also be affected by judicial, legislative, regulatory

and other governmental developments, litigation tactics and

developments, investigation developments, competition, pricing and

policy term trends, the levels of new and renewal business achieved,

market acceptance, changes in demand, the frequency and severity of

catastrophic events, the amount and timing of reinsurance

recoverables, credit developments among reinsurers, changes in the

cost or availability of reinsurance, market developments, 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.