ACE Reports Record Quarterly Operating Income of $790 Million, Net Income of $891 Million and P&C Combined Ratio of 87.9%;

  ACE Reports Record Quarterly Operating Income of $790 Million, Net Income of
  $891 Million and P&C Combined Ratio of 87.9%; Operating Return on Equity is
  12.3%

  *Record operating income of $2.29 per share, up 5.5% from prior year
  *P&C net premiums written up 7.1%; up 8.6% in constant dollars
  *P&C underwriting income of $434 million, up 15.8%
  *P&C current accident year underwriting income excluding catastrophe losses
    up 21.3%; current accident year combined ratio excluding catastrophe
    losses of 89.2%
  *Net investment income flat with prior year, $534 million versus $537
    million

Business Wire

ZURICH -- July 23, 2013

ACE Limited (NYSE: ACE) today reported net income for the quarter ended
June30, 2013, of $2.59 per share, compared with $0.96 per share for the same
quarter last year.^(1) Operating income was $2.29 per share, compared with
$2.17 per share for the same quarter last year. ^ Book value per share
declined 2.3% from March 31, 2013, to $80.26 due to rising interest rates.
Tangible book value per share decreased 4.9% to $64.40, primarily due to
rising interest rates and the impact of goodwill and intangibles relating to
acquisitions closed during the quarter. Operating return on equity for the
quarter was 12.3%. The property and casualty (P&C) combined ratio for the
quarter was 87.9%.

Second Quarter Summary
(in millions, except per share amounts)
(Unaudited)
                                                               
                                                   (Per Share - Diluted)
                   2013     2012     Change      2013     2012      Change
                                                                             
Net income         $ 891     $ 328     171.2 %     $ 2.59   $ 0.96     169.8 %
Net realized
gains (losses),    101     (415  )  NM         0.30    (1.21  )  NM    
net of tax
Operating
income, net of     $ 790   $ 743   6.3   %     $ 2.29  $ 2.17   5.5   %
tax
                                                                             
                                                                             

For the six months ended June 30, 2013, net income was $5.36 per share,
compared with $3.80 per share for 2012. Operating income was $4.46 per share,
compared with $4.22 per share for 2012. Book value decreased $236 million,
down 0.9% from December 31, 2012, and tangible book value decreased $656
million, down 2.9%. The P&C combined ratio for the six months ended June 30,
2013, was 88.1%.

Six Months Ended Summary
(in millions, except per share amounts)
(Unaudited)
                                                     
                                                (Per Share – Diluted)
             2013       2012       Change     2013        2012    Change
                                                                             
Net income   $ 1,844      $         41.7 %      $ 5.36     $ 3.80    41.1 %
                           1,301
Net
realized
gains        308       (143    )  NM        0.90       (0.42  ) NM     
(losses),
net of tax
Operating                  $
income,      $ 1,536    1,444   6.4  %      $ 4.46   $ 4.22   5.7  %
net of tax
                                                                             

Evan G. Greenberg, Chairman and Chief Executive Officer of ACE Limited,
commented: “ACE had record earnings in the quarter that were driven, in
particular, by excellent current accident year underwriting results and strong
investment income. We produced $790 million in after-tax operating income and
our operating ROE was 12.3%. Book value declined 2.3% due to the rise in
interest rates, which reduced unrealized gains in our investment portfolio.
However, future investment income will benefit over time from the rise in
interest rates.

“Our underwriting performance in the quarter, illustrated by a P&C combined
ratio of 87.9%, benefited from margin improvement and premium growth globally.
Total P&C net premiums were up over 8.5% on a constant dollar basis – with
solid revenue growth in commercial P&C, accident and health, and personal
lines. Growth was particularly strong from North America, Asia and Latin
America, where our new acquisitions in Mexico are already contributing and
added to the region’s strong results.

“The primary commercial P&C pricing environment in the U.S. remains favorable
and, in fact, we experienced our strongest quarter yet for casualty-related
rate increases in our retail business. At the same time, property rate
increases are moderating. While economic conditions remain a mixed bag around
the globe, we are firing on all cylinders and, as things stand now, expect
continued strong results for the balance of the year.”

Operating highlights for the quarter ended June30, 2013, were as follows:
^(1)

  *Total company net premiums written increased 6.3%, or 7.6% on a
    constant-dollar basis.
  *P&C net premiums written increased 7.1%, or 8.6% on a constant-dollar
    basis.
  *Total pre-tax and after-tax catastrophe losses including reinstatement
    premiums were $81 million (2.3 percentage points of the combined ratio)
    and $66 million, respectively, compared with $55 million and $41 million,
    respectively, in 2012.
  *P&C underwriting income was $434 million compared with $374 million in
    2012.
  *P&C current accident year underwriting income excluding catastrophe losses
    increased 21.3% to $386 million.
  *The P&C combined ratio was 87.9% compared with 88.7% last year.
  *Favorable prior period development pre-tax was $128 million, representing
    3.6 percentage points of the combined ratio, compared with $113 million
    last year.
  *The current accident year combined ratio excluding catastrophe losses was
    89.2% compared with 90.4% last year.
  *The P&C expense ratio was 29.2%, unchanged from last year.
  *Operating cash flow was $895 million.
  *Net loss reserves increased $349 million in the quarter.
  *Net investment income was $534 million compared to $537 million last year
    as lower reinvestment rates were offset by higher private equity and other
    distributions.
  *Net realized and unrealized losses pre-tax totaled approximately $1.4
    billion.
  *Operating return on equity was 12.3% for the quarter and 12.1%
    year-to-date. Return on equity computed using net income was 12.9% for the
    quarter and 13.5% year-to-date.
  *Acquisitions closed in the quarter include Fianzas Monterrey on April 1,
    2013, for $293 million in cash and ABA Seguros on May 2, 2013, for $690
    million in cash.
  *Book value per share decreased 2.3% to $80.26 compared with $82.17 at
    March 31, 2013, and decreased 0.8% from $80.90 at December 31, 2012.
  *Tangible book value per share ^ decreased 4.9% to $64.40 from $67.74 at
    March31, 2013, and decreased 2.8% from $66.28 at December 31, 2012,
    primarily due to rising interest rates and the impact of goodwill and
    intangibles relating to the acquisitions of Fianzas Monterrey and ABA
    Seguros. Excluding the impact of the acquisitions, the tangible book value
    per share decreased 2.7% for the quarter and 0.5% for the year.

Details of financial results by business segment are available in the ACE
Limited Financial Supplement. Key segment items for the quarter ended June30,
2013, include:

  *Insurance - North American P&C: Net premiums written increased 11.8%. The
    combined ratio was 87.6% compared with 89.3%.
  *Insurance - North American Agriculture: Net premiums written decreased
    8.0% due to an increase in proportional reinsurance purchased. The
    combined ratio was 89.9% compared with 88.7%.
  *Insurance - Overseas General: Net premiums written increased 10.5%, or
    13.7% on a constant-dollar basis. The combined ratio was 88.2% compared
    with 89.3%.
  *Global Reinsurance: Net premiums written decreased 5.3%, or 4.2% on a
    constant-dollar basis. The combined ratio was 62.2% compared with 66.1%.
  *Life: Operating income was $76 million compared with $79 million. Net
    premiums written and deposits collected, excluding life reinsurance,
    increased 17.7% on a constant-dollar basis.

The company is issuing updated guidance for full-year 2013 to account for the
first half positive prior period reserve development, lower-than-planned
catastrophe losses realized in the first half, better first half current
accident year results excluding catastrophe losses, and higher net investment
income in the second quarter and expected for the second half of the year. The
range is $7.65 to $8.05 per share in after-tax operating income for the year.
This includes estimated catastrophe losses of $260 million after tax for the
second half of the year. Guidance for the balance of the year is for the
current accident year only.

Please refer to the ACE Limited Financial Supplement, dated June30, 2013,
which is posted on the company's 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.

ACE will hold its second quarter earnings conference call on Wednesday, July
24, 2013, beginning at 8:30 a.m. Eastern. The earnings conference call will be
available via live webcast at www.acegroup.com or by dialing 877-723-9509
(within the United States) or 719-325-4760 (international), passcode 9261188.
Please refer to the ACE Group website in the Investor Information section
under Calendar of Events for details. A replay of the call will be available
until Wednesday, August 7, 2013, and the archived webcast will be available
for approximately one month. To listen to the replay, please dial 888-203-1112
(in the United States) or 719-457-0820 (international), passcode 9261188.

The ACE Group is one of the world's largest multiline property and casualty
insurers. With operations in 53 countries, ACE provides commercial and
personal property and casualty insurance, personal accident and supplemental
health insurance, reinsurance and life insurance to a diverse group of
clients. ACE Limited, the parent company of the ACE Group, is listed on the
New York Stock Exchange (NYSE: ACE) and is a component of the S&P 500 index.
Additional information can be found at: www.acegroup.com.

^(1) All comparisons are with the same period last year unless specifically
stated.

Regulation G - Non-GAAP Financial Measures

In presenting our results, we included and discussed certain non-GAAP
measures. The below non-GAAP measures, which may be defined differently by
other companies, are important for an understanding of our overall results of
operations and financial condition. However, they should not be viewed as a
substitute for measures determined in accordance with generally accepted
accounting principles (GAAP).

Operating income or income excluding net realized gains (losses), net of tax
is a common performance measurement for insurance companies. We believe this
presentation enhances the understanding of our results of operations by
highlighting the underlying profitability of our insurance business. We
exclude net realized gains (losses) and net realized gains (losses) included
in other income (expense) related to partially-owned entities because the
amount of these gains (losses) is heavily influenced by, and fluctuates in
part according to, the availability of market opportunities.

Underwriting income is calculated by subtracting losses and loss expenses,
policy benefits, policy acquisition costs and administrative expenses from net
premiums earned. We use underwriting income and operating ratios to monitor
the results of our operations without the impact of certain factors, including
net investment income, other income (expense), interest and income tax expense
and net realized gains (losses). Current accident year underwriting income is
underwriting income adjusted to exclude prior period development (PPD). We
believe it is useful to exclude PPD as these unexpected loss developments on
historical reserves are not indicative of our current underwriting
performance. Life underwriting income includes net investment income and gains
(losses) from fair value changes in separate account assets that do not
qualify for separate account reporting under generally accepted accounting
principles (GAAP). P&C underwriting income and consolidated underwriting
income are also non-GAAP financial measures. We believe the use of these
measures enhances the understanding of our results of operations by
highlighting the underlying profitability of our insurance business.

Operating return on equity (ROE) or ROE calculated using income excluding net
realized gains (losses) is an annualized financial measure. The ROE numerator
includes income adjusted to exclude net realized gains (losses), net of tax.
The ROE denominator includes the average shareholders' equity for the period
adjusted to exclude unrealized gains (losses) on investments, net of tax. To
annualize a quarterly rate, multiply by four. Annualized ROE calculated using
income excluding realized gains (losses) is a useful measure as it enhances
the understanding of the return on shareholders' equity by highlighting the
underlying profitability relative to shareholders' equity excluding the effect
of unrealized gains and losses on our investments.

Combined ratio excluding catastrophe losses and PPD or current accident year
combined ratio excluding catastrophe losses exclude impacts of catastrophe
losses and PPD. We believe this measure provides a better evaluation of our
core underwriting performance and enhances the understanding of the trends in
our property & casualty business that may be obscured by these items.

Net premiums written on a constant-dollar basis and P&C net premiums written
on a constant-dollar basis are financial measures which exclude the impact of
foreign exchange. We believe it is useful to evaluate the trends in net
premiums written, exclusive of the effect of fluctuations in exchange rates
between the U.S. dollar and the currencies in which our international business
is transacted, as these exchange rates could fluctuate significantly between
periods and distort the analysis of trends. The impact is determined by
assuming constant foreign exchange rates between periods by translating prior
period results using the same local currency exchange rates as the comparable
current period.

Life net premiums written and deposits collected, excluding life reinsurance,
is adjusted to include deposits collected on universal life and investment
contracts (life deposits) and exclude results from our life reinsurance
business. Life deposits are properly not reflected as revenues in our
consolidated statements of operations in accordance with GAAP. We include life
deposits in presenting growth in our Life business because new life deposits
are an important component of production and key to our efforts to grow our
business. We exclude results associated with life reinsurance as there is no
new life reinsurance business currently being written.

Tangible book value per common share is shareholders' equity less goodwill and
other intangible assets divided by the shares outstanding. We believe that
goodwill and other intangible assets are not indicative of our underlying
insurance results or trends and make book value comparisons to less
acquisitive peer companies less meaningful.

Tangible book value per common share excluding 2013 acquisitions is
shareholders' equity less goodwill and other intangible assets divided by the
shares outstanding. The numerator adds back the goodwill and other intangible
assets related to the 2013 acquisitions of Fianzas Monterrey and ABA Seguros
in order to control for the distortive effect of acquisitions.

See reconciliation of Non-GAAP Financial Measures on pages 23-24 in the
Financial Supplement. These measures should not be viewed as a substitute for
net income, return on equity, or effective tax rate determined in accordance
with GAAP.

NM - not meaningful comparison

Cautionary Statement Regarding Forward-Looking Statements:

Forward-looking statements made in this press release, such as those related
to company performance and guidance, investments, economic outlook and
insurance market conditions, reflect our 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 that could cause actual results to
differ materially, including without limitation, the following: competition,
pricing and policy term trends, the levels of new and renewal business
achieved, the frequency of unpredictable catastrophic events, actual loss
experience, uncertainties in the reserving or settlement process, integration
activities and performance of acquired companies, new theories of liability,
judicial, legislative, regulatory and other governmental developments,
litigation tactics and developments, investigation developments and actual
settlement terms, the amount and timing of reinsurance recoverable, credit
developments among reinsurers, 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 our 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. We undertake no obligation to publicly update or revise any
forward-looking statements, whether as a result of new information, future
events or otherwise.

                              (tables to follow)

ACE Limited
Summary Consolidated Balance Sheets
(in millions of U.S. dollars, except per share data)
(Unaudited)

                                                              
                                                    June 30      December 31
                                                    2013         2012
                                                                 
Assets
Investments                                         $ 59,690     $   60,264
Cash                                                679          615
Insurance and reinsurance balances receivable       5,022        4,147
Reinsurance recoverable on losses and loss expenses 11,442       12,078
Other assets                                        16,855      15,441
      Total assets                                  $ 93,688    $   92,545
                                                                 
Liabilities
Unpaid losses and loss expenses                     $ 37,343     $   37,946
Unearned premiums                                   7,851        6,864
Other liabilities                                   21,199      20,204
      Total liabilities                             66,393      65,014
                                                                 
Shareholders' equity
      Total shareholders' equity                    27,295      27,531
      Total liabilities and shareholders' equity    $ 93,688    $   92,545
                                                                 
Book value per common share                         $ 80.26      $   80.90
                                                                     
                                                                     

ACE Limited
Summary Consolidated Financial Data
(in millions of U.S. dollars, except share, per share data, and ratios)
(Unaudited)
                                                            
                                                               
                                                       
                               Three Months Ended      Six Months Ended
                               June 30                 June 30
                               2013        2012        2013         2012
                                                                    
Gross premiums written         $ 6,030     $ 5,653     $ 10,993     $ 10,440
Net premiums written           4,391       4,130       8,189        7,702
Net premiums earned            4,067       3,783       7,640        7,164
Losses and loss expenses       2,250       2,119       4,176        3,923
Policy benefits                110         102         241          249
Policy acquisition costs       665         619         1,279        1,201
Administrative expenses        564        514        1,078       1,024    
Underwriting income            478         429         866          767
                                                                    
Net investment income          534         537         1,065        1,081
Net realized gains (losses)    104         (394    )   310          (134     )
Interest expense               73          62          133          124
Other income (expense):
     Gains (losses) from       (11     )   (14     )   (7       )   4
     separate account assets
     Other                     (26     )   (20     )   (20      )   (35      )
Income tax expense             115        148        237         258      
Net income                     $ 891      $ 328      $ 1,844     $ 1,301  
                                                                    
Diluted earnings per share:
Operating income               $ 2.29      $ 2.17      $ 4.46       $ 4.22
Net income                     $ 2.59      $ 0.96      $ 5.36       $ 3.80
                                                                    
Weighted average diluted       344.1       342.7       344.0        342.2
shares outstanding
                                                                    
Loss and loss expense ratio    58.7    %   59.5    %   58.0     %   58.3     %
Policy acquisition cost ratio  15.9    %   16.1    %   16.5     %   16.7     %
Administrative expense ratio   13.3    %   13.1    %   13.6     %   13.9     %
Combined ratio                 87.9    %   88.7    %   88.1     %   88.9     %
                                                                             
                                                                             

ACE Limited
Consolidated Supplemental Segment Information
(in millions of U.S. dollars)
(Unaudited)
                                                             
                                                                
                               Three Months Ended      Six Months Ended
                               June 30                 June 30
                               2013        2012        2013         2012
                                                                    
Gross Premiums Written
                                                                    
Insurance - North American P&C $ 2,327     $ 2,134     $ 4,146      $ 3,963
Insurance - North American     749         722         998            905
Agriculture
Insurance - Overseas General   2,097       1,952       4,170        3,936
Global Reinsurance             345         332         639          611
Life                           512        513        1,040       1,025    
Total                          $ 6,030    $ 5,653    $ 10,993    $ 10,440 
                                                                    
Net Premiums Written
                                                                    
Insurance - North American P&C $ 1,529     $ 1,368     $ 2,813      $ 2,542
Insurance - North American     453         492         566            611
Agriculture
Insurance - Overseas General   1,630       1,475       3,250        3,003
Global Reinsurance             292         309         571          572
Life                           487        486        989         974      
Total                          $ 4,391    $ 4,130    $ 8,189     $ 7,702  
                                                                    
Net Premiums Earned
                                                                    
Insurance - North American P&C $ 1,428     $ 1,268     $ 2,766      $ 2,496
Insurance - North American     351         384         403            443
Agriculture
Insurance - Overseas General   1,563       1,420       3,022        2,811
Global Reinsurance             245         237         492          467
Life                           480        474        957         947      
Total                          $ 4,067    $ 3,783    $ 7,640     $ 7,164  
                                                                    
Operating Income
                                                                    
Insurance - North American P&C $ 341       $ 305       $ 702        $ 614
Insurance - North American     26          30          33           55
Agriculture
Insurance - Overseas General   256         232         495          446
Global Reinsurance             156         149         300          286
Life                           76          79          146          163
Corporate                      (65     )   (52     )   (140     )   (120     )
Total                          $ 790      $ 743      $ 1,536     $ 1,444  

Contact:

ACE Limited
Investor Contact:
Helen M. Wilson, (441) 299-9283
helen.wilson@acegroup.com
or
Media Contact:
Stephen M. Wasdick, (212) 827-4444
stephen.wasdick@acegroup.com