ACE USA, a member of the ACE Group of Insurance and Reinsurance Companies, and Gramercy Insurance Company announced yesterday that they have entered into a strategic partnership.

The deal will create and develop a reinsurance agreement for Gramercy Insurance and Gramercy Service Company products and services.

The companies said this partnership provides superior capability, and the financial strength to pursue specific market segments for all their specialty lines of business.

"It significantly strengthens our position with key distribution partners, especially in Equipment Maintenance Insurance, Telecommunications and Extended Warranty Products,'' said Todd M. Campbell, president of Gramercy Insurance.

"We're excited about the opportunities this partnership represents. Coupled with our ability to provide significant financial resources and stability to Gramercy product offerings, we are confident we will be able to expand our partnership to deliver more innovative products quickly, through a broad, and professional agent and broker distribution network,'' said Shaun Fetherston, senior vice president, ACE USA. Bermuda-based ACE provides insurance and reinsurance for a diverse group of international clients. At December 31, 2000, ACE had approximately $32 billion in assets and $5.4 billion in shareholders' equity. On January 12, 1999, ACE Limited agreed to acquire the international and domestic property and casualty businesses of CIGNA Corporation for $3.45 billion in cash.

Gramercy Insurance is a specialty insurance carrier with offices in Georgia and Texas. Under new ownership and direction since February 2000, Gramercy received a B rating upgrade from A.M. Best, the nation's leading insurance company rating service.