Fitch Ratings has affirmed the ‘A+' insurer financial strength ratings of various US insurance subsidiaries of ACE Limited (ACE), specifically the insurance subsidiaries of INA Holdings Corporation (INA Holdings).

The ratings were also removed from Rating Watch Negative. The Rating Outlook is Stable.

INA Holdings is an intermediate holding company owned by ACE INA Holdings, Inc. (ACE INA). ACE INA is ultimately owned by ACE.

INA Holdings and Brandywine Holdings Corporation (Brandywine Holdings) together comprise the domestic operations of ACE INA and represent the domestic property/casualty insurance operation that ACE purchased from CIGNA Corporation in 1999.

INA Holdings owns the 19 insurance companies that represent the group's active insurance operations.

Brandywine Holdings represents the inactive, runoff operation that houses the group's asbestos and environmental claims.

The two groups were separated in a 1996 restructuring.

The rating action follows ACE's completion of a $500 million preferred security offering and a $250 million capital contribution to the insurance subsidiaries of INA Holdings.

INA Holdings' insurer financial strength ratings had been placed on Rating Watch Negative on January 29, 2003 following ACE's announcement that it would record a $2.2 billion gross charge as the result of its asbestos reserve review.

The charge triggered an aggregate excess of loss contract between the active insurance companies of INA Holdings and the inactive companies in Brandywine Holdings.

Approximately $466 million (GAAP basis) of losses were ceded to the INA Holdings companies under this agreement.

Fitch had previously indicated on April 23, 2003 that it would affirm the ‘A+' financial strength ratings of the INA Holdings companies upon successful completion of the preferred security offering and the subsequent capital contribution of approximately $250 million to the insurance companies.