executive officer Brian Duperreault were featured in the front page of yesterday's New York Times business section.

Headlined "An Insurer Goes Against the Odds'' the article quotes analysts supporting Mr. Duperreault's drive for diversification of the company. The article also contains warnings about ACE's efforts to grow in the competitive market of providing commercial property and casualty coverage.

This month ACE agreed to pay $3.45 billion for Cigna Corp.'s property and casualty business.

New York Times reporter Joseph Treaster quotes Ira Zuckerman of Nutmeg Securities as stating that ACE might have paid $1 billion too much for the business.

"This is a very risky bet at the wrong time,'' Mr. Zuckerman said. "The whole commercial business in the US is terrible and there doesn't seem to be any sign of it getting better.'' Other analysts question ACE's ability to absorb Cigna's property and casualty business. ACE's annual sales will rise to $5.5 billion from $1.2 billion. The number of employees will jump to 9,650 from 650.

Page 23: ACE results Duperreault in media spotlight ACE will also have an estimated $2.1 billion in debt and preferred stock, which could work out to about 20 percent of the combined company's capital.

"But other analysts have confidence that the deal will be a success and have recommended ACE's shares,'' the article states. "Such confidence in large part reflects the industry's high regard for Mr. Duperreault.'' Mr. Duperreault counters the deal's critics by stating that they are undervaluing the Cigna business. He states that he can grow the business by chopping expenses and focusing on specialities like crop, and marine cargo insurance.

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