ACE Applauds Favorable Ruling in California Lawsuit.

Business Editors

HAMILTON, Bermuda--(BUSINESS WIRE)--May 16, 2000

"We are gratified that the courts have found that there is no legal basis for a lawsuit with respect to the restructuring plan implemented by INA Financial Corporation in 1996 before it was acquired by ACE," the company said today.

The Superior Court of the State of California, in a ruling issued yesterday in response to a lawsuit brought by subsidiaries of AIG and Chubb, found that:

--  The complaint does not state a cause of action under California
    law. The validity of the restructuring plan, as approved by
    California and Pennsylvania insurance departments, are matters for
    the regulatory authorities;

--  Plaintiffs have not alleged any present or reasonably foreseeable
    or imminent injury to policyholders;

--  There is no basis for the Court to find that notices sent to
    California policyholders about the restructuring were deceptive or
    misleading.

"ACE has maintained from the beginning that this lawsuit, filed by our competitors, was an attempt to turn the focus away from competition in the marketplace by seeking to relitigate matters already decided against them. We believe that fair competition should take place in the marketplace, not in the courts. That is the best policy for our customers and shareholders."

Background

INA Financial Corporation was acquired by ACE Limited in July 1999 as part of the acquisition of CIGNA's domestic and international property and casualty operations. The acquired company had been restructured in 1996 with a plan subsequently approved by the Pennsylvania Department of Insurance and the California Department of Insurance.

The ACE Group of Companies provides insurance and reinsurance for a diverse group of clients. ACE Limited (NYSE:ACL) is the parent company. The ACE Group conducts its business on a global basis with operating subsidiaries in nearly 50 countries. Additional information can be found at www.acelimited.com.