ACE LIMITEDA GLOBALPREFERRED STRATEGIC PARTNER

Sprinklers from an Insurer’s perspective.

Copenhagen24 – 25, June 2008

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AGENDA

A brief introduction to ACE

Insurance terminology

Capacity calculations and the impact of automatic sprinklers

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A BRIEF INTRODUCTION: WE ARE A NEW OLD COMPANY

1985 – Established in Bermuda with six employees to provide hard to place Excess Liability and D&O 1996 – 1999 – Eight acquisitions to build global platform including Lloyd’s syndicate 2488, Tempest Re, Westchester Fire and in 1999 CIGNA’s global P&C operations.

1999 - Acquisition of Insurance Company of North America, established in Philadelphia in 1792. The oldest stock insurance company in the United States

2007 - Through acquisition and organic development we now have one of the few true global platforms, with over 10,000 employees operating in 50 countries

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A BRIEF INTRODUCTION: WE HAVE THE FINANCIALSTRENGTH YOU NEED

Net Written Premium $ 12 billion

Net Income $ 2.3 billion

Combined Ratio 88.1%

ROE 18.5%

Total Assets $ 71 billion

Book Value $ 15.2 billion

Financial Strength Rating A+ (S&P, AM Best)

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2006

30/6/07

Latin America

ArgentinaBrazilChileColombiaEcuadorMexicoPeruPuerto Rico

Europe & Middle EastAustria ItalyBahrain NetherlandsBelgium NorwayCzech Republic PolandDenmark PortugalEgypt Saudi ArabiaFinland South AfricaFrance SpainGermany SwedenGibraltar SwitzerlandGermany UKHungaryIreland

Asia Pacific

Australia New ZealandChina PakistanGuam PhilippinesHong Kong SingaporeIndonesia TaiwanKorea ThailandMacao VietnamMalaysia

A BRIEF INTRODUCTION – FOOTPRINT: WE ARE IDEALLYPOSITIONED TO SERVE OUR CUSTOMERS WORLDWIDE

North America

BermudaCanadaUSA

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58.4% of NWP

24.8% of NWP

7.1% of NWP

5.5% of NWP

Far East

Japan

4.2% of NWP

Admitted status in all of the world’s major markets

* NWP: Non-Life Insurance Premium (excludes Life & Reinsurance)

A BRIEF INTRODUCTION: OUR BASIC STRUCTURE

INSURANCENORTH AMERICA

INSURANCENORTH AMERICA

INSURANCEOVERSEAS GENERAL

INSURANCEOVERSEAS GENERAL GLOBAL REINSURANCEGLOBAL REINSURANCE LIFE INSURANCE

REINSURANCELIFE INSURANCE

REINSURANCE

ACE BERMUDA

ACE BERMUDA

ACECANADA

ACECANADA

ACEUSAACEUSA

EUROPEEUROPE

ACELATIN AMERICA

ACELATIN AMERICA

ACEASIA PACIFIC

ACEASIA PACIFIC

ACEEUROPE

ACEEUROPE

ACEFAR EAST

ACEFAR EAST

BERMUDABERMUDA

USAUSA

ACEGLOBAL MARKETS

ACEGLOBAL MARKETS

DIRECT INSURANCE

DIRECT INSURANCE

EUROPEEUROPE

LATINAMERICA

LATINAMERICA

ASIAASIA

ACETEMPEST

LIFE

ACETEMPEST

LIFE

BERMUDABERMUDA

USAUSA

ACETEMPEST

RE

ACETEMPEST

RE

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ACEINTERNATIONAL

ACEINTERNATIONAL

Dedicated leadership at global, regional and country level Matrix organization. Local business line management report to country/regional heads and product line leaders Execution is in country by local professionals

OUR STRATEGIC DIRECTION: INTERNATIONAL

An organization focused on, and management aligned with a diverse customer base, product mix and geographical presence

Four key market segments: - Large/Multinational

- Commercial Property & Casualty- Small/Middle Market – SME- Individual Consumers: Life, Accident & Health and Select Personal Lines

Growth will be organic and through opportunistic acquisitions or strategic partnerships that will add to our distribution, product or geographic mix

Pursue significant growth in Accident & Health, SME, Personal Lines and Life Insurance in all regions.

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OUR STRATEGIC DIRECTION (CON’T)

Maximize our opportunity in China and other emerging or developing markets

Continue to expand our geographic presence – India, Turkey, Panama

We will always be an “underwriting company”, proactive in our search for opportunities across the globe but disciplined in our approach to underwriting

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Insurance Terminology

• Rate – price per insured unit,• Premium – total money paid for insurance,• Capacity – the total amount of risk, an insurance company can assume,• Lead insurer – defines terms and conditions,• Follow insurer – accepts T&C of lead insurer,• Re-insurance – that part of the risk that is not kept by the primary

insurer,• Loss ratio – a ratio of dollar losses paid per dollar income,• Combined Ratio – a ratio that is the sum of the loss ratio, company

and adjusters expense ratio• profit

Insurance Terminology

• Amount Subject – Possible maximum loss,• PML – probable maximum loss,• Public Protection modifier – a combination of the public fire

department and public water supply,( 1- 2.75)• Automatic sprinkler modifier,( 1 – 3)• Grade of Risk modifier – a management evaluation score ( 1- 2.5)