ACE European Group Limited to Become a Top Three Property & Casualty Provider.

LONDON -- ACE European Group Limited, the cornerstone of ACE's London Market and European business, has received regulatory approval to transfer its Belgium based business into the UK-based company.

From January 1, 2005, the combined business is anticipated to underwrite 2005 Gross Written Premium in excess of $4 billion, making ACE European Group Limited the third largest UK Financial Services Authority regulated P&C carrier.(1)

The expansion of ACE European Group Limited follows ACE's decision to make the company its principle operating platform for Property & Casualty, Accident & Health and Personal Lines business across Europe. Headquartered in London and regulated by the Financial Services Authority, the company has an established branch network in 15 countries, Freedom of Services permissions to underwrite business in 27 European countries, Excess & Surplus lines eligibility in 37 US states and the ability to underwrite reinsurance in most countries.

The ACE European Group will continue to trade under its existing three brands; ACE Europe, ACE Global Markets (AGM) and ACE Tempest Re Europe. In addition, ACE's Lloyd's Syndicate 2488, operating under the AGM brand, will continue to underwrite business through its managing agent, ACE Underwriting Agencies Limited.

Gary Schmalzriedt, Chairman and CEO of ACE European Group said: "ACE have invested heavily in growing a European-based business that offers brokers and clients immediate access to ACE's considerable underwriting expertise and its expansive global network."

"From 1st January 2005, ACE European Group Limited will bring together all our knowledge and experience in one legal entity. It will benefit from the regulatory oversight of the FSA, ACE's London based headquarters with its own state-of-the-art Trading Floor, and the commitment, enthusiasm and dedication of an 1800 strong workforce. Its position as the third largest non-life insurer in the UK demonstrates the phenomenal growth, which ACE has experienced in recent years."

(1) Source: 2003 non-life technical account data, AM Best Insight Global database

Notes to editors:

--Regulatory approval has been granted to transfer the insurance portfolio of ACE Insurance S.A.-N.V. into ACE European Group Limited as of 1 January 2005.

--The UK Court granted ACE's Part VII petition for transfer of ACE Insurance S.A-N.V's UK Branch reinsurance business to ACE European Group Limited as of 1 January 2005.

--ACE European Group Limited, formerly known as ACE INA UK Limited, has been assigned an A+ financial strength rating from Standard & Poor's. ACE Insurance S.A.-N.V. also holds an A+ rating from Standard & Poor's. Syndicate 2488 holds an Aa3 financial strength rating from Moody's, one of the highest in the Lloyd's of London market.

--Business comparisons based on AM Best Global database of non-life UK domiciled businesses not affiliated to other UK businesses. Comparisons based on 2003 Gross Written Premium figures reported in technical non-life statutory accounts included in the database.

--Product lines offered through ACE European Group Limited include property, casualty, accident and health, personal lines and reinsurance.

--ACE European Group Limited is registered at Companies House, number 112892. It is one of the ACE Group of Companies, a global leader in insurance, reinsurance and financial services. The ACE Group manages assets in excess of $45 billion and is listed on the NYSE under the ticker symbol ACE. Chairman of the ACE Group is Brian Duppereault; President and Chief Executive Officer is Evan Greenberg.

The ACE Group of Companies provides insurance and reinsurance for a diverse group of clients. 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.