ACE Ltd. has agreed to indemnify its directors and executives against losses stemming from New York Attorney General Eliot Spitzer?s investigations into the insurance industry, according to a Securities and Exchange Commission filing on Wednesday.

ACE?s media relations department would not expand on the agreement, but according to a regulatory document filed with the SEC yesterday, ACE will provide indemnification ? compensation for loss or damage ? to any past and current directors and executives for any event or occurrence related to the subject matter of the investigations.

On October 14, 2004, Mr. Spitzer (pictured) filed a civil suit against Marsh & McLennan Companies Inc. alleging that certain Marsh business practices were fraudulent and violated anti-trust and securities laws. ACE was named as one of four insurance companies whose employees participated in the practices in question although ACE was not named as a defendant in the suit.

The company was also touched by industry-wide investigations by Mr. Spitzer, the Securities and Exchange Commission and other regulators relating to the use of finite risk reinsurance.

Two ACE employees implicated in last year?s allegations of illegal bid rigging with Marsh have been fired, one of whom pleaded guilty to a misdemeanour charge in the Spitzer investigation and three other employees were suspended as a result of the company?s internal investigation. Earlier this year, Susan Rivera, the former head of ACE?s largest US operation stepped down amid speculation her sudden departure was tied to the matter.

At year-end 2004, ACE, its subsidiaries and affiliates had received 43 subpoenas, interrogatories, civil investigative demands, and letters of inquiry in connection with the pending investigations of insurance industry practices.

The amended agreement this week also states that ACE directors and executives will be indemnified against any other investigations by any government entity covering subject matter that is substantially similar to or arises from the other investigations, the SEC filing said.