Bermuda-based insurer ACE Ltd. has linked its 1994 loss with a second-quarter charge to earnings related to breast implant litigation.

ACE yesterday reported a fiscal year loss of $45.7 million, or 95 cents per share, compared to the $223.5 million -- $5.50 per share -- profit reported last year.

For the fourth quarter, ended September 30, 1994, ACE reported net income of $44.7 million, or 94 cents per share, compared to $62.3 million or $1.25 cents per share, for the same quarter of last year, a drop of 28.3 percent.

"The loss reported in 1994 was a direct result of the $200 million charge to earnings,'' according to a release from ACE.

The charge, announced July 21, was described as an "additional charge'' and at that time the company would not divulge how much they had already earmarked for increases to reserves for unpaid losses and loss expenses primarily related to breast implant litigation.

"This year ACE experienced two very significant adverse events: the $200 million charge to earnings and a bearish bond market, both of which impacted our reported earnings,'' noted Mr. Brian Duperreault, chairman, president and chief executive officer.

"In spite of these events, we enter 1995 in a strong financial position with total assets of $2.6 billion and total shareholder's equity of $1.1 billion,'' he added.

Assets for fiscal 1993 were $2.3 billion while shareholders' equity at September 30, 1993 was $1.4 billion.

Income excluding net realised gains for the fourth quarter was $43.3 million or 91 cents per share compared with $32.1 million or 64 cents per share reported last year. Fully diluted net asset value per share at September 30, 1994 was $22.95.

Net premiums written for fourth quarter were $90.1 million compared to $74.6 million for fourth quarter 1993, an increase of 20.9 percent.

For the year, net premiums written were $385.9 million compared to $340.4 million, an increase of 13.4 percent.

Net premiums earned for the fourth quarter were $104.4 million compared to $84.6 million, an increase of 23.5 percent. For the year, net premiums earned were $391.1 million compared to $319.6 million for fiscal 1993, a jump of 22.4 percent.

For the year, income excluding net realised gains was a loss of $49.4 million or $1.02 per share compared to net income of $125.2 million or $3.08 per share for fiscal 1993.

Unpaid losses and loss expenses at September 30, 1994 were $1.2 billion compared to $650.2 million at September 30, 1993.

For fiscal 1993, pro forma earnings per share was $4.49 and pro forma earnings per share, excluding net realised gains, was $2.51.

On November 1, 1993, ACE completed the purchase of CODA (Corporate Officers & Directors Assurance Holdings Ltd.) and since that date CODA's earnings have been included in ACE's 1994 results.

"In keeping with our plans for global expansion we have recently opened a representative office in London. This move will help develop more business in the European marketplace, providing information about all of ACE's insurance products primarily to brokers in the UK and Europe,'' commented Mr.

Duperreault.

ACE also announced in fiscal 1994 a change to its integrated occurrence excess liability coverage, and price increases for the medical, chemical and energy industries.

"Our integrated occurrence limit will be reduced to $100 million on new and renewal business written after December 15,1994. In this way we will reduce our exposure to aggregation of risk resulting from multiple `batch' claims originating from a single event,'' concluded Mr. Duperreault.

ACE Ltd., through its wholly-owned insurance subsidiaries, provides excess directors and officers liability insurance as well as high level excess liability insurance. ACE also offers satellite insurance.