million by creating new shares to pay off existing debt.

The company said the proceeds from the sale would be used for general corporate purposes, "which may include the repayment or repurchase of outstanding debt or hybrid trust preferred securities of one or more of ACE's subsidiaries,'' the insurer said in a statement.

Ace said that Banc of America Securities LLC will act as the sole underwriter in the offering.

After the announcement, ACE shares fell $1.50 to $33.38 on the New York Stock Exchange.