HAMILTON, Bermuda, October 6, 1999 -- ACE Limited (NYSE: ACL, BSX:ACL.BH) announced today that it has been informed by Capital Re Corporation (NYSE: KRE) that the Board of Directors of Capital Re has received an unsolicited cash offer for all of its outstanding shares. As a result, the Board of Directors of Capital Re has decided to postpone their shareholder meeting previously scheduled for October 7, 1999, which had been called to vote on the proposed tax-free merger with ACE. ACE has reiterated its interest in combining with Capital Re and is awaiting further information from the Board of Directors of Capital Re.
Brian Duperreault, chairman, president and chief executive officer of ACE stated: "We are disappointed by this eleventh hour development and continue to believe that the combination of ACE and Capital Re is in the best interest of the stockholders of both companies. We are reserving all of our rights and remedies under our existing agreement and otherwise."
The ACE Group of Companies provides insurance and reinsurance for a diverse group of clients. The company conducts its business on a global basis with operating subsidiaries in nearly 50 countries. Additional information can be found at: www.acelimited.com.