A.M. Best Assigns Indicative Ratings to ACE Limited’s New Shelf Registration

A.M. Best has assigned indicative ratings to the unlimited Securities and Exchange Commission shelf registration of ACE Limited (ACE) (Zurich, Switzerland) [NYSE:ACE], which includes ACE and its debt-issuing subsidiaries, ACE INA Holdings, Inc., ACE Capital Trust III and ACE Capital Trust IV. ACE provides a full and unconditional guarantee on all amounts due. The outlook assigned to these ratings is stable. A.M. Best also has withdrawn the debt ratings on the previous shelf registration, which has expired. All existing ratings for ACE and its subsidiaries are unchanged. (See below for a detailed listing of the indicative ratings.)

The indicative ratings reflect ACE’s strong capitalization, diversified global operation enhanced by prudent acquisitions over the past few years, and historically favorable record of generating strong earnings and cash flows. ACE has maintained controlled financial leverage, a relatively conservative investment portfolio that generates stable earnings and favorable loss reserve development in recent years. ACE’s unadjusted total debt-to-capital was about 18% at Sept. 30, 2014.

The following indicative ratings under the shelf registration have been assigned with a stable outlook:

ACE Limited and ACE INA Holdings, Inc.—

-- “a+” on senior unsecured debt

-- “a” on subordinated debt

ACE Limited—

-- “a-” on preferred shares

ACE Capital Trust III and IV—

--“a-” on trust preferred securities

The methodology used in determining these ratings is Best's Credit Rating Methodology, which provides a comprehensive explanation of A.M. Best's rating process and contains the different rating criteria employed in the rating process. Best's Credit Rating Methodology can be found at www.ambest.com/ratings/methodology.

Key insurance criteria reports utilized:

• A.M. Best's Perspective on Operating Leverage
• Analyzing Insurance Holding Company Liquidity
• Catastrophe Analysis in A.M. Best Ratings
• Equity Credit for Hybrid Securities
• Insurance Holding Company and Debt Ratings
• Rating Members of Insurance Groups
• Risk Management and the Rating Process for Insurance Companies
• Understanding Universal BCAR

This press release relates to rating(s) that have been published on A.M. Best's website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please visit A.M. Best’s Ratings & Criteria Center.

A.M. Best Company is the world's oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.

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