ACE LIMITED

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ACE LIMITED A GLOBAL PREFERRED STRATEGIC
PARTNER Sprinklers from an Insurers
perspective.
Copenhagen 24 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 DO
• 1996 1999 Eight acquisitions to build global
  platform
• including Lloyds syndicate 2488, Tempest Re,
  Westchester
• Fire and in 1999 CIGNAs global PC
  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
FINANCIAL STRENGTH YOU NEED
2006

• 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
• (SP, AM Best)

30/6/07
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A BRIEF INTRODUCTION FOOTPRINT WE ARE
IDEALLY POSITIONED TO SERVE OUR CUSTOMERS
WORLDWIDE
Europe Middle East
Austria
Italy Bahrain
Netherlands Belgium
Norway Czech Republic
Poland Denmark
Portugal Egypt Saudi
Arabia Finland South
Africa France Spain Germany
Sweden Gibraltar
Switzerland Germany
UK Hungary Ireland
North America Bermuda Canada USA
58.4 of NWP
24.8 of NWP
Latin America
Argentina Brazil Chile Colombia Ecuador Mexico Per
u Puerto Rico
Asia Pacific
Australia New
Zealand China
Pakistan Guam
Philippines Hong Kong
Singapore Indonesia
Taiwan Korea
Thailand Macao Vietnam Malaysia

Far East Japan
5.5 of NWP
4.2 of NWP
7.1 of NWP

• Admitted status in all of the worlds major
  markets

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NWP Non-Life Insurance Premium (excludes Life
Reinsurance)
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A BRIEF INTRODUCTION OUR BASIC STRUCTURE
INSURANCE NORTH AMERICA
INSURANCE OVERSEAS GENERAL
GLOBAL REINSURANCE
LIFE INSURANCE REINSURANCE
DIRECT INSURANCE
ACE USA
ACE TEMPEST RE
ACE GLOBAL MARKETS
ACE INTERNATIONAL
EUROPE
ACE CANADA
BERMUDA
ACE EUROPE
LATIN AMERICA
ACE BERMUDA
EUROPE
ACE FAR EAST
ASIA
USA
ACE ASIA PACIFIC
ACE TEMPEST LIFE
ACE LATIN AMERICA
BERMUDA

• 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

USA
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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 (CONT)

• 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 TC 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

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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)