News Releases

ZURICH--(BUSINESS WIRE)--The Board of Directors of ACE Limited (NYSE: ACE) today declared a quarterly dividend equal to $0.33 payable on January 11, 2011, to shareholders of record at the close of business on December 16, 2010, subject to a required filing with the Swiss Commercial Register. Dividend payments will be made in United States dollars (USD) by the company’s transfer agent. In connection with the dividend payment, the company’s par value, currently 30.89 Swiss francs (CHF) per share, will be reduced on the record date by the CHF equivalent of $0.33 per share based on the USD/CHF rate published on December 13, 2010. This will be the third of four par value reduction installments as approved by the company’s shareholders on May 19, 2010.

The company also announced its Board of Directors authorized the repurchase of up to $600 million of ACE’s common shares through December 31, 2012, to offset, in whole or in part, potential dilution from the exercise of stock options and granting of restricted stock under ACE’s equity-based incentive plans. Subject to market conditions and a variety of timing considerations, the company believes it is appropriate to repurchase shares from time to time to offset shareholder dilution attributable to equity grants. This repurchase authorization, which may be implemented in any given quarter, year or multi-year period, in the open market, in privately negotiated transactions, block trades, accelerated repurchases and/or through option or other forward transactions, replaces the November 2001 authorization for the repurchase of up to $250 million of any ACE issued debt or capital securities, including common shares. To date, no shares have been repurchased under the November 2001 authorization.

Celebrating 25 years of insuring progress, the ACE Group is a global leader in insurance and reinsurance serving a diverse group of clients. Headed by ACE Limited (NYSE:ACE), a component of the S&P 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.acegroup.com.

Cautionary Statement Regarding Forward-Looking Statements:

Forward-looking statements made in this press release, such as statements regarding dividend payments and record date, and potential repurchases of shares, reflect the company’s current views with respect to future events and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements involve risks and uncertainties, which may cause actual results to differ materially from those set forth in these statements. For example, the company’s forward-looking statements about its dividend payments could be affected by extraordinary currency fluctuations leading to reduction in the USD value of the dividend pursuant to the dividend cap approved by the company’s shareholders and described in the company’s proxy statement dated April 5, 2010; or delay in filing or acceptance of filing of the necessary amendments to the company’s Articles of Association which makes the record date official. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the dates on which they are made. The company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.