securities on the New York Stock Exchange on Friday.

The securities, called FELINE PRIDES(SM) (consisting initially of Income PRIDES(SM)) of ACE Limited, mark the final replacement of the interim financing related to ACE Ltd.'s July, 1999 acquisition of ACE INA, formerly the domestic and international property casualty businesses of CIGNA Corporation, the Bermuda-based insurer said.

The Income PRIDES(SM) will be listed on the New York Stock Exchange under the symbol "ACLPrI.'' The net proceeds from this issuance, estimated at $290 million, will be used to repay commercial paper at ACE Limited.

Each Income PRIDES(SM) consists of one Cumulative Redeemable Preferred Share, Series A of ACE Limited and a purchase contract under which the holder will be obligated to purchase by May 16, 2003 a number of ordinary shares of ACE Limited determined as set forth in the prospectus supplement relating to the offering of the FELINE PRIDES(SM).

Each preferred share will initially pay cumulative cash dividends quarterly in arrears at the annual rate of 8.25% of the liquidation preference of $50 per preferred share up to, but excluding, May 16, 2003.

On May 16, 2003, ACE will issue a total number of ordinary shares under the purchase contracts equal to $300 million divided by the average closing prices of ACE's ordinary shares for the twenty consecutive trading days ending on the third trading day immediately prior to May 16, 2003, subject to a maximum of approximately 15.8 million ordinary shares (average closing price 10 percent below $21.0625) and a minimum of approximately 11.4 million ordinary shares (average closing price 25 percent above $21.0625).

The FELINE PRIDES(SM) are rated "BBB'' by Standard & Poor's rating services and "a2'' by Moody's Investors Service. The offering was underwritten by a syndicate lead-managed by Merrill Lynch & Co., and co-managed by Banc of America Securities, LLC and Donaldson, Lufkin & Jenrette.