brought by subsidiaries of AIG and Chubb.

"We are gratified that the courts have found that there is no legal basis for a lawsuit with respect to the restructuring plan implemented by INA Financial Corporation in 1996 before it was acquired by ACE,'' the company stated.

The Superior Court of the State of California, in a ruling issued in response to a lawsuit brought by subsidiaries of AIG and Chubb, found that: The complaint does not state a cause of action under California law. The validity of the restructuring plan, as approved by California and Pennsylvania insurance departments, are matters for the regulatory authorities; Plaintiffs have not alleged any present or reasonably foreseeable or imminent injury to policy holders; There is no basis for the Court to find that notices sent to California policyholders about the restructuring were deceptive or misleading.

"ACE has maintained from the beginning that this lawsuit, filed by our competitors, was an attempt to turn the focus away from competition in the marketplace by seeking to relitigate matters already decided against them. We believe that fair competition should take place in the marketplace, not in the courts. That is the best policy for our customers and shareholders.'' INA Financial Corporation was acquired by ACE Limited in July 1999 as part of the acquisition of CIGNA's domestic and international property and casualty operations. The acquired company had been restructured in 1996 with a plan subsequently approved by the Pennsylvania Department of Insurance and the California Department of Insurance.

COURTS CTS