joining together to provide large blocks of capacity in the excess liability and property coverages.

The two companies announced an agreement to provide coverages up to $250 million in excess liability, and up to $100 million for property coverages.

"The combined offering is aimed at meeting client demand for large blocks of capacity from single insurers and reducing the number of carriers required to complete complex insurance programmes,'' holding company ACE Ltd. stated in a press release.

Under the excess liability programme ACE USA will offer ACE insurance prospects and clients $50 million of "occurence'' form coverage.

"This form of coverage, prevalent in the American market, will generally attach immediately under the ACE Insurance coverage as the top "occurrence'' form layer with combined capacity of up to $250 million. ACE USA President and Chief Executive Officer Dennis Reding said the agreement was an opportunity for the fledgling company to build on ACE Insurance client base.