ACE Reports Record Q3 Operating Income of $759 Million (Excerpt)

ZURICH, Switzerland – 26 October, 2011 – ACE Limited (NYSE: ACE; BSX: ACE.BH) reported a net loss for the quarter ended 30 September, 2011, of $0.09 per share, compared with net income of $1.97 per share for the same quarter last year; income excluding net realized gains (losses) was $2.22 per share, compared with $2.01 per share for the same quarter last year. Annualized operating return on average equity for the quarter was 13.6%. The property and casualty (P&C) combined ratio for the quarter was 90.3%. The quarter was marked by financial market volatility in the credit, equity and foreign exchange markets, which impacted net income and book value. A net realized and unrealized loss contributed to a book value per share decline of 1%. Financial market volatility impacted the company’s variable annuity reinsurance business resulting in a net loss of about $660 million, which comprised a realized loss of $706 million related to the change in fair-value liabilities, offset by $45 million in operating income. Book value is up 3% for the year.

Net income for the nine months ended 30 September, 2011, was $2.45 per share, compared with $6.18 per share for the same period in 2010. For the nine months ended 30 September, 2011, income excluding net realized gains (losses) was $5.02 per share, compared with $5.73 per share for 2010. Book value increased $776 million, up 3% from 31 December, 2010. The P&C combined ratio for the nine months ended 30 September, 2011, was 95.2%.

Evan G. Greenberg, Chairman and Chief Executive Officer of ACE Limited, commented: “ACE had outstanding operating results in what were very difficult financial market conditions. All principal businesses performed well and contributed positively to the operating results in the quarter. Revenue increased 31% and after-tax operating income was $759 million, up 10% and a record for our company. Our performance in the quarter was led by excellent current accident year underwriting results that benefited from both underwriting discipline and risk management. We also had strong contributions from our recent acquisitions and very good growth in investment income driven by portfolio construction and positive cash flow. The strength of our well-balanced portfolio of businesses was in evidence, including commercial P&C globally, personal accident and life, crop and our global presence, particularly in faster growing regions such as Asia and Latin America.

“As a result of an historic drop in interest rates – the lowest level in over 100 years – and an equity market correction driven by Federal Reserve action and a flight to safety by investors, we incurred a substantial charge to book value from a negative mark to market in our variable annuity reinsurance business and our corporate fixed income investment portfolio. In our judgment, the majority of this mark will be transient and will reverse over time making a positive contribution to book value in future quarters. “ACE is in excellent shape and we remain quite confident about our prospects for the fourth quarter and beyond.”

Details of the financial results for our business segments are available in the ACE Limited Financial Supplement.

Please refer to the ACE Limited Financial Supplement, dated 30 September, 2011, which is posted on our website in the Investor Information section, and access Financial Reports for more detailed information on individual segment performance, together with additional disclosure on reinsurance recoverable, loss reserves, investment portfolio and capital structure.

The company is increasing earnings guidance for full-year 2011. Operating income after tax is now expected to range between $6.55 and $6.75 per share for the full year. This includes $630 million after tax in catastrophe losses for the first three quarters, plus $75 million after tax in catastrophe losses for the fourth quarter. The guidance also includes $335 million of after-tax positive prior period development reflected in the first three quarters. There is no prior period development included in our guidance for the fourth quarter.

ACE will host its third quarter earnings conference call and webcast on Wednesday, October 26, 2011, beginning at 8:30 a.m. Eastern. The earnings conference call will be available via live and archived webcast at www.acegroup.com or by dialing 800-967-7185 (within the United States) or 719-457-2654 (international); passcode 9247852. Please refer to the ACE Limited website in the Investor Information section under Calendar of Events for details. A replay of the call will be available for approximately one month. To listen to the replay, dial: 888-203-1112 (in the United States) or 719-457-0820 (international); passcode 9247852.

The ACE Group is a global leader in insurance and reinsurance serving a diverse group of clients. Headed by ACE Limited (NYSE: ACE), a component of the S&P 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.acegroup.com

Contacts

ACE Limited

Investor Contact:

Helen M. Wilson,                     Tel: 441-299-9283

                                                E-mail: helen.wilson@acegroup.com

Media Contact:

Stephen M. Wasdick,             Tel: 212-827-4444