Bermuda-based ACE Limited has signed an agreement to buy a 325,000 square foot office complex in Philadelphia, slated to become the headquarters for its US business.

ACE spokesperson in the US, John Herbkersman, told The Royal Gazette on Friday that the company's US operations ? ACE INA ? had important ties to Philadelphia, and it was decided that these should be kept.

"ACE INA has a long history and association with the city of Philadelphia ? over 200 years ? and we feel that staying in the city allows ACE to keep this relationship strong and thriving."

The company currently has significant office space in Philadelphia at Two Liberty Place but had considered moving out of the city when that lease ran out in February, 2006.

Renovations to the new property, on 436 Walnut Street, mean the move into the space will not take place until late next year, Mr. Herbkersman said. The company is seeking some assistance from the city, under its Tax Increment Financing programme, for the rehaul of the building.

Mr. Herbkersman said the assistance could be given in light of ACE both buying and occupying the space.

"The city of Philadelphia and the state of Pennsylvania have a strong desire to see the city continue to prosper and build its business base."

He said the closing date for the sale had not been finalised, but the company does intend to shift its 1,100 Philadelphia employees to the new space in 2005.

Although ACE Limited was a company set up in Bermuda in 1985 it acquired a significant presence in the US, and globally, through a number of acquisitions.

These included ACE's 1999 acquisition of the property & casualty (P&C) business of Cigna for $3.45 billion. Part of that acquisition was the Insurance Company of North America, with Cigna having been formed in the early 1980s through the merger of the Insurance Company of North America and Connecticut General.

The Insurance Company of North America was founded in Philadelphia in the late 1700s, hence ACE INA's long history with the city.

The complex, near the city's historic Independence Hall, was originally built for the General Accident Insurance Co.