A.M. Best Rates Senior Notes of ACE INA Holdings, Inc.

OLDWICK, N.J. -- A.M. Best Co. has assigned a debt rating of "a-" to ACE INA Holdings, Inc.'s (Ace INA Holdings) (Philadelphia, PA) $500 million 5.7% 10 year senior unsecured notes. The notes are fully and unconditionally guaranteed by ACE INA Holdings' ultimate parent, ACE Limited (ACE) (Bermuda) (NYSE:ACE). Proceeds from the current offering will be used to repay $500 million of senior notes maturing in April, 2007 issued by ACE. The rating outlook is stable.

ACE's consolidated debt-to-capital ratio at December 31, 2006 was a moderate 14.6% (including trust preferreds) and 17.5% adjusting for tangible capital. ACE continues to maintain approximately 27% of equity in intangible assets (goodwill and deferred taxes). ACE's financial leverage has precipitously declined over the past several years as a result of ever increasing levels of equity emanating from strong earnings supported by the continuous increase of invested assets.

ACE's annual holding company cash outflows in excess of $500 million create some strain on the Bermuda subsidiaries' capital levels since ACE looks to them to provide the majority of its cash requirements. A.M. Best continues to monitor holding company cash outflow; however, ACE's moderate financial leverage and proven financial flexibility remains a significant positive rating factor.

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Founded in 1899, A.M. Best Company is a full-service credit rating organization dedicated to serving the financial services industries, including the banking and insurance sectors. For more information, visit www.ambest.com.