News Releases

LONDON--(BUSINESS WIRE)--April 10, 2006--ACE European Group (ACE)(NYSE:ACE) is launching an enhanced range of covers as part of its Elite Investment Management Insurance product (EIMI). This is in response to increased exposure to litigation and a growing demand for the investment and fund management sector to be properly and comprehensively insured. 
 

With more institutional investors calling on fund managers to have Professional Indemnity (PI) cover and increasing numbers of non-executive directors seeking Directors & Officers (D&O) cover, ACE sees a growing demand for liability cover that offers the sector more responsive protection from exposure to financial losses.

Richard Coello, ACE's Financial Institutions' Underwriter for this sector said: "We have already seen several instances where investment houses have encountered claims for mis-selling, negligence and fraud. Given funds under management are likely to soar following pension simplification or 'A Day', with the resultant injection of SIPP money, the industry is likely to see many more claims of this sort."

"The penetration of liability covers in the sector remains low and yet today's commercial environment means fund managers could be taking unnecessary risks and face claims running into tens of millions of pounds. The enhancements to our product are designed to provide the most comprehensive and competitive cover available."

ACE EIMI brings together a range of professional insurances incorporating Professional Indemnity (PI), Directors and Officers (D&O) and Crime cover specifically for investment and fund management groups. ACE EIMI is aimed at all types of investment groups with funds under management ranging from GBP 25 million to GBP 25 billion or more.

ACE will use its team's extensive fund management experience to adopt a more focused approach to underwriting in this sector. Not only will this ensure premiums accurately reflect the risks but ACE's knowledge of the types of claims affecting the sector will assist in the defence of any such future claims.

ACE has also introduced new areas of cover within the policy which will be of direct benefit to funds and their investment managers, including:

'Cost of Correction' cover provides managers with indemnity not just for client losses but also the costs associated with correcting the loss. For example, if a client suffers as a result of a mis-calculation of the fund's net asset value, the policy will cover the cost of recalculating the net asset value, specialist audit expenses which may be required and any PR costs to defend the manager's reputation.

'Loss Mitigation' cover enables fund managers to take swift action to resolve a problem without having to wait for approval from the insurer. ACE believes fund managers should be able to take the necessary action to correct problems quickly.

The EIMI product includes:

-- PI and D&O - losses resulting from claims for any act, error, misstatement, misleading statement, omission, neglect, breach of trust, breach of fiduciary duty, and breach of statutory duty.

-- Crime - losses resulting from dishonesty, fraudulent or malicious acts.

Notes to Editors:

ACE

The ACE European Group comprises the operations of ACE Europe, ACE Global Markets and ACE Tempest Re Europe. With an established presence in 16 countries across Europe and Freedom of Services permissions to operate in 27 European countries, ACE Europe provides a range of tailored Property and Casualty, Accident and Health and Personal Lines solutions for a diverse range of clients. ACE Global Markets (AGM) is ACE's specialty international business, underwriting through ACE's Lloyd's Syndicate 2488 and UK registered company ACE European Group Limited. Specialty lines include excess and surplus lines business, Marine, Aviation, Energy and Political Risk as well as Property, Financial Lines and Accident and Health. Additional information on ACE European Group can be found at www.aceeuropeangroup.com.

The ACE Group of Companies is a global leader in insurance and reinsurance serving a diverse group of clients. Headed by ACE Limited (NYSE: ACE), a component of the Standard & Poor's 500 stock index, the ACE Group conducts its business on a worldwide basis with operating subsidiaries in more than 50 countries. Additional information can be found at: www.acelimited.com.