ACE Comments on S&P Rating Reaffirmation

March 24, 2003

Bermuda’s ACE Limited announced today that Standard & Poor’s has reaffirmed its ‘A’ plus financial strength and counterparty credit rating, as well as the ratings of its insurance subsidiaries, following “a regular review begun last month by the rating agency.”

The bulletin also noted that S&P had “lowered the senior debt and issuer credit ratings for ACE Limited to triple ‘B’ plus from single ‘A’ minus,” and indicated that the action “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.”

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

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