development reinsurance cover with a Bermuda-based Swiss Re Group subsidiary.

A statement from Fairfax released yesterday said the company did not anticipate the cost of the cover would have any significant effect on its after-tax profitability.

The Toronto-based financial services holding company organised the cover, from the AAA-rated Bermuda branch of the European Reinsurance Company of Zurich, through Swiss Re New Markets -- Swiss Re's risk financing division.

The coverage relates to claims or uncollectible reinsurance of Fairfax's insurance and reinsurance companies, including TIG, for business written before January 1 this year.

Subject to its terms the agreement would kick in if the total of such losses exceeded the aggregate reserves for such losses established as at the end of 1998.

The protection provided by the cover is on top of that afforded by the $957 million (Canadian) of indemnifications Fairfax has on acquisitions, which remained at the end of 1998.

The latest coverage is also in addition to Fairfax's accumulated negative goodwill and other provisions arising from recent acquisition of about $800 million (Canadian).

Through its subsidiaries, Fairfax is engaged in property casualty and life insurance and reinsurance, investment management and insurance claims management.

ACE ANNOUNCES E&O COVERAGE BUC ACE USA announces E&O coverage An arm of ACE Limited announced yesterday it had introduced an errors and omissions coverage part to be used in conjunction with its new management protection insurance policy.

Atlanta-headquartered ACE USA said the latest coverage part allowed it to offer a fully blended E&O and D&O policy to commercial customers.

Liability limits for the E&O, D&O, company securities liability, employment practices liability, fiduciary liability and commercial crime could be bought as either a single total for all parts or separately for each.

And the company said the individual limit of liability available for each part was $25 million.

The product is designed for commercial accounts of a public, private or not-for-profit nature.

Industries likely to benefit from such a blended approach included entertainment, real estate, telecommunications, media, public relations and management consultants, the company said in a statement issued yesterday.

ACE USA E&O division senior vice president Rosemarie Rogers said the combined approach made it easier for clients to cover both types of insurance with "one stop shopping''.

"Blending of the E&O coverage into the Management Protection Policy gives our clients the ability to truly integrate E&O and D&O insurance in a way that best suits the needs of the client's organisation,'' she said.

ACE LTD. FILES SHELF REGISTRATION BUC ACE Ltd. files shelf registration Bermuda-based insurance giant ACE Ltd. has filed a shelf registration for up to $4 billion in debt securities and ordinary and preferred shares.

It lodged the registration with the US Securities and Exchange Commission yesterday.

The filing revealed net proceeds would be used to acquire the international and domestic property and casualty businesses of CIGNA Corp., or to repay debt incurred to acquire CIGNA businesses.

In January ACE announced it had signed the $3.45 billion cash deal to buy the domestic and international property-casualty insurance business.