ACE Financial Strength Rating Reaffirmed

March 21, 2003

Bermuda-based ACE Limited announced that its ‘A’ plus financial strength and counterparty credit rating, as well as the ratings of its insurance subsidiaries, have been reaffirmed by Standard & Poor’s (S&P’s).

S&P’s affirmation follows a regular review begun last month by the rating agency. The agency has also lowered the senior debt and issuer credit ratings for ACE Limited to triple ‘B’ plus from single ‘A’ minus. The triple ‘B’ plus debt rating represents the traditional one-category gap from the single ‘A’ plus financial strength rating assigned to insurance companies by S&P.

The return to a standard gap between the financial strength and debt ratings was anticipated and ACE has accepted this as a result of the organization’s growth in current market conditions.

ACE also concurs with S&P’s assessment that capital adequacy concerns will be addressed with ACE’s plan to raise $500 million perpetual preferred securities. The company expects to go to market with this offering in the near future.

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