Chubb Ltd - FORM 8-K - EX-99.2

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8-K - 8-K - Chubb Ltd	d663030d8k.htm
EX-99.1 - EX-99.1 - Chubb Ltd	d663030dex991.htm

Exhibit 99.2

LOGO


Investor Contact Helen M. Wilson Phone: (441) 299-9283 Fax: (441) 292-8675 email: investorrelations@acegroup.com		This report is for informational purposes only. It should be read in conjunction with documents filed by ACE Limited with the Securities and Exchange Commission, including the most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Cautionary Statement Regarding Forward-Looking Statements:
		Any forward-looking statements made in this financial supplement reflect ACE’s current views with respect to future events and financial performance and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements involve risks and uncertainties which may cause actual results to differ materially from those set forth in these statements. For example, our forward-looking statements, such as statements concerning exposures, reserves and recoverables, could be affected by the frequency of unpredictable catastrophic events, actual loss experience, uncertainties in the reserving or settlement process, new theories of liability, judicial, legislative, regulatory and other governmental developments, litigation tactics and developments, investigation developments and actual settlement terms, the amount and timing of reinsurance receivable and credit developments among reinsurers.

		Our forward-looking statements could also be affected by competition, pricing and policy term trends, market acceptance, changes in demand, actual market developments, rating agency action, possible terrorism or the outbreak and effects of war. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the dates on which they are made. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

ACE Limited

Financial Supplement Table of Contents


	Page
I. Financial Highlights
- Consolidated Financial Highlights		1

II. Consolidated Results
- Consolidated Results—Consecutive Quarters		2
- Summary Consolidated Balance Sheets		3
- Consolidated Premiums and Operating Income by Line of Business		4 - 5

III. Segment Results
- Insurance—North American—For Reference Only		6
- Insurance—North American P&C		7
- Insurance—North American Agriculture		8
- Insurance—Overseas General		9
- Global Reinsurance		10
- Life		11

IV. Balance Sheet Details
- Loss Reserve Rollforward		12
- Reinsurance Recoverable Analysis		13
- Investment Portfolio		14 - 17
- Net Realized and Unrealized Gains (Losses)		18
- Capital Structure		19
- Computation of Basic and Diluted Earnings Per Share		20

V. Other Disclosures
- Non-GAAP Financial Measures		21 - 22
- Book Value and Book Value per Common Share		23
- Glossary		24

ACE Limited

Consolidated Financial Highlights

(in millions of U.S. dollars, except share, per share data, and ratios)

(Unaudited)

Note: All dollar amounts in the Financial Supplement are rounded. However, percent changes and ratios are calculated using whole dollars. Accordingly, calculations using rounded dollars may differ.


												Constant $														Constant $
	Three months ended December 31						% Change 4Q-13 vs.			Constant $		% Change 4Q-13 vs.			Year ended December 31						% Change 2013 vs.			Constant $		% Change 2013 vs.
	2013			2012			4Q-12			2012 ⁽¹⁾		4Q-12⁽¹⁾			2013			2012			2012			2012 ⁽¹⁾		2012 ⁽¹⁾
Gross premiums written	$	5,462		$	5,146			6.1	%	$	5,089		7.3	%	$	22,828		$	21,593			5.7	%	$	21,413		6.6	%
Net premiums written	$	4,216		$	3,657			15.3	%	$	3,609		16.8	%	$	17,025		$	16,075			5.9	%	$	15,926		6.9	%
P&C net premiums written ⁽²⁾	$	3,712		$	3,140			18.2	%	$	3,098		19.8	%	$	15,053		$	14,096			6.8	%	$	13,958		7.8	%
Global P&C net premiums written ⁽³⁾	$	3,456		$	3,056			13.1	%	$	3,014		14.7	%	$	13,426		$	12,237			9.7	%	$	12,099		11.0	%
Net premiums earned	$	4,363		$	3,848			13.4	%	$	3,802		14.8	%	$	16,613		$	15,677			6.0	%	$	15,542		6.9	%
Net investment income	$	557		$	567			-1.7	%						$	2,144		$	2,181			-1.7	%
Operating income	$	824		$	492			67.5	%						$	3,217		$	2,624			22.6	%
Net income	$	998		$	765			30.5	%						$	3,758		$	2,706			38.9	%
Comprehensive income	$	776		$	638			21.6	%						$	2,023		$	3,682			-45.1	%
Operating cash flow	$	1,286		$	970										$	4,022		$	3,995
P&C combined ratio
Loss and loss expense ratio		61.3	%		75.5	%										59.6	%		65.7	%
Underwriting and administrative expense ratio		28.0	%		30.0	%										28.4	%		28.2	%

Combined ratio		89.3	%		105.5	%										88.0	%		93.9	%
Operating return on equity (ROE)		12.1	%		8.0	%										12.2	%		11.0	%
ROE		14.0	%		11.2	%										13.3	%		10.4	%
Operating effective tax rate		9.2	%		-46.8	% ⁽⁴⁾										11.6	%		7.5	%
Effective tax rate		8.1	%		-21.4	% ⁽⁴⁾										11.3	%		9.1	%
Diluted earnings per share
Operating income	$	2.39		$	1.43			67.1	%						$	9.35		$	7.65			22.2	%
Net income	$	2.90		$	2.22			30.6	%						$	10.92		$	7.89			38.4	%
Book value per common share															$	84.83		$	80.90			4.9	%
Tangible book value per common share															$	68.93		$	66.28			4.0	%
Tangible book value per common share excluding 2013 acquisitions ⁽⁵⁾															$	70.69		$	66.28			6.7	%
Weighted average basic common shares outstanding		340.9			340.8											340.9			339.8
Weighted average diluted common shares outstanding		344.2			343.7											344.1			342.7
Debt plus trust preferred securities/ tangible capital																20.4	%		18.4	%

(1)	Prior periods on a constant dollar basis.

(2)	P&C net premiums written is defined as consolidated net premiums written excluding net premiums written of the company’s Life segment. See non-GAAP financial measures.

(3)	Global P&C net premiums written is defined as consolidated net premiums written excluding net premiums written of the company’s Life and Insurance—North American Agriculture segments. See non-GAAP financial measures.

(4)	For Q4 2012, Operating effective tax rate and Effective tax rate include a $121 million tax benefit from the favorable resolution of prior years’ tax matters.

(5)	For 2013, tangible book value per common share excludes the impact from goodwill and intangibles relating to the acquisitions of ABA Seguros and Fianzas Monterrey of $403 million and $197 million, respectively.


Financial Highlights		Page 1

ACE Limited

Consolidated Results—Consecutive Quarters

(in millions of U.S. dollars, except ratios)

(Unaudited)

ACE Limited Consolidated


	4Q-13			3Q-13			2Q-13			1Q-13			4Q-12			Full Year 2013			Full Year 2012
Global P&C (Including Corporate) ⁽¹⁾
Gross premiums written	$	4,719		$	4,417		$	4,769		$	4,186		$	4,310		$	18,091		$	16,892
Net premiums written		3,456			3,336			3,451			3,183			3,056			13,426			12,237
Net premiums earned		3,456			3,294			3,236			3,044			3,096			13,030			11,889
Losses and loss expenses		1,925			1,768			1,812			1,737			2,272			7,242			7,131
Policy acquisition costs		608			560			550			530			543			2,248			2,084
Administrative expenses		485			473			475			424			466			1,857			1,775

Underwriting income (loss)		438			493			399			353			(185	)		1,683			899
Net investment income		486			455			464			462			496			1,867			1,905
Interest expense		66			68			69			56			60			259			238
Other income (expense)—operating ⁽²⁾		(15	)		(21	)		(23	)		(14	)		(2	)		(73	)		(41	)
Income tax expense (benefit)		85			127			83			76			(170	)		371			187

Global P&C operating income		758			732			688			669			419			2,847			2,338
Insurance—North American Agriculture segment operating income (loss) ⁽³⁾		(20	)		50			26			7			(1	)		63			(38	)

Operating income (including Corporate) excluding Life segment		738			782			714			676			418			2,910			2,300
Life segment operating income		86			75			76			70			74			307			324

Consolidated operating income		824			857			790			746			492			3,217			2,624
Adjusted net realized gains (losses) ⁽³⁾		154			41			104			206			272			505			78
Net realized gains (losses) related to unconsolidated entities		25			22			12			33			23			92			62
Income tax expense on net realized gains (losses)		5			4			15			32			22			56			58

Consolidated net income	$	998		$	916		$	891		$	953		$	765		$	3,758		$	2,706

Additional Global P&C financial data ⁽¹⁾
% Change versus prior year period
Net premiums written as reported		13.1	%		8.9	%		9.5	%		7.3	%		6.9	%		9.7	%		6.3	%
Net premiums earned as reported		11.6	%		9.1	%		10.7	%		6.8	%		5.5	%		9.6	%		2.6	%
Net premiums written constant $		14.7	%														11.0	%
Net premiums earned constant $		13.1	%														10.8	%
Other ratios
Net premiums written/gross premiums written		73	%		76	%		72	%		76	%		71	%		74	%		72	%
Combined ratio
Loss and loss expense ratio		55.7	%		53.7	%		56.0	%		57.1	%		73.4	%		55.6	%		60.0	%
Policy acquisition cost ratio		17.6	%		17.0	%		17.0	%		17.4	%		17.5	%		17.3	%		17.5	%
Administrative expense ratio		14.1	%		14.3	%		14.7	%		13.9	%		15.1	%		14.2	%		14.9	%

Combined ratio		87.4	%		85.0	%		87.7	%		88.4	%		106.0	%		87.1	%		92.4	%

Combined ratio excluding catastrophe losses and PPD		89.9	%		88.9	%		89.2	%		89.5	%		90.8	%		89.4	%		91.1	%
Expense ratio		31.7	%		31.3	%		31.7	%		31.3	%		32.6	%		31.5	%		32.4	%
Expense ratio excluding A&H		27.9	%		27.6	%		28.3	%		27.7	%		29.1	%		27.9	%		28.9	%
Catastrophe reinstatement premiums (expensed) collected - pre-tax	$	1		$	2		$	—		$	—		$	(7	)	$	3		$	(5	)
Catastrophe losses - pre-tax	$	35		$	78		$	78		$	32		$	500		$	223		$	622
Favorable prior period development (PPD) - pre-tax ⁽⁴⁾	$	(122	)	$	(200	)	$	(128	)	$	(67	)	$	(36	)	$	(517	)	$	(467	)
Loss and loss expense ratio excluding catastrophe losses and PPD		58.3	%		57.7	%		57.6	%		58.1	%		58.2	%		58.0	%		58.7	%

(1)	Presented excluding the Insurance—North American Agriculture and Life segments. This is a non-GAAP financial measure.

(2)	Excludes portion of net realized investment gains and losses related to unconsolidated entities.

(3)	Losses from fair value changes on crop derivatives are excluded from Adjusted net realized gains (losses) and included in Insurance—North American Agriculture segment operating income (loss) for this presentation. Crop derivative losses for YTD 2013 were $1 million.

(4)	For Q4 2013 and YTD 2013, favorable prior period development is net of $5 million and $28 million, respectively, of net earned premium adjustments on loss sensitive policies.


Consolidated Results		Page 2

ACE Limited

Summary Consolidated Balance Sheets

(in millions of U.S. dollars, except per share data)

(Unaudited)


	December 31 2013			September 30 2013			June 30 2013			March 31 2013			December 31 2012
Assets
Fixed maturities available for sale, at fair value	$	49,254		$	48,529		$	47,016		$	47,947		$	47,306
Fixed maturities held to maturity, at amortized cost		6,098			6,306			6,576			6,867			7,270
Equity securities, at fair value		837			831			837			832			744
Short-term investments, at fair value		1,763			1,774			2,425			2,893			2,228
Other investments		2,976			2,902			2,836			2,820			2,716

Total investments		60,928			60,342			59,690			61,359			60,264
Cash		579			768			679			855			615
Securities lending collateral		1,632			1,517			1,662			1,786			1,791
Insurance and reinsurance balances receivable		5,026			5,089			5,022			4,154			4,147
Reinsurance recoverable on losses and loss expenses		11,227			11,477			11,442			11,530			12,078
Deferred policy acquisition costs		2,313			2,224			2,077			1,966			1,873
Value of business acquired		536			554			560			583			614
Prepaid reinsurance premiums		1,675			1,724			1,819			1,653			1,617
Goodwill and other intangible assets		5,404			5,465			5,395			4,909			4,975
Deferred tax assets		616			584			753			505			453
Investments in partially-owned insurance companies		470			468			452			449			454
Other assets		4,104			4,372			4,137			3,712			3,664

Total assets	$	94,510		$	94,584		$	93,688		$	93,461		$	92,545

Liabilities
Unpaid losses and loss expenses	$	37,443		$	37,882		$	37,343		$	37,082		$	37,946
Unearned premiums		7,539			7,794			7,851			7,019			6,864
Future policy benefits		4,615			4,596			4,502			4,465			4,470
Insurance and reinsurance balances payable		3,628			3,627			3,624			3,402			3,472
Securities lending payable		1,633			1,520			1,665			1,789			1,795
Accounts payable, accrued expenses, and other liabilities		4,810			4,929			5,391			5,744			5,397
Short-term debt		1,901			1,902			1,901			1,402			1,401
Long-term debt		3,807			3,807			3,807			4,307			3,360
Trust preferred securities		309			309			309			309			309

Total liabilities		65,685			66,366			66,393			65,519			65,014
Shareholders’ equity
Total shareholders’ equity, excl. AOCI		27,673			26,844			26,035			25,292			24,644
Accumulated other comprehensive income (AOCI)		1,152			1,374			1,260			2,650			2,887

Total shareholders’ equity		28,825			28,218			27,295			27,942			27,531

Total liabilities and shareholders’ equity	$	94,510		$	94,584		$	93,688		$	93,461		$	92,545

Book value per common share	$	84.83		$	82.98		$	80.26		$	82.17		$	80.90
% change over prior quarter		2.2	%		3.4	%		-2.3	%		1.6	%		1.9	%
Tangible book value per common share	$	68.93		$	66.91		$	64.40		$	67.74		$	66.28
% change over prior quarter		3.0	%		3.9	%		-4.9	%		2.2	%		2.5	%


Consol Bal Sheet		Page 3

ACE Limited

Consolidated Premiums and Operating Income by Line of Business

(in millions of U.S. dollars)

(Unaudited)

ACE Limited Consolidated


	4Q-13			% of Total Consolidated			4Q-12			% of Total Consolidated			% Change 4Q-13 vs. 4Q-12			Full Year 2013		% of Total Consolidated			Full Year 2012			% of Total Consolidated			% Change 2013 vs. 2012
Net premiums written
Property and all other	$	1,132			27	%	$	939			26	%		20.6	%	$	4,855		29	%	$	4,240			26	%		14.5	%
Agriculture		256			6	%		84			2	%		203.6	%		1,627		10	%		1,859			12	%		-12.5	%
Casualty		1,644			39	%		1,475			40	%		11.5	%		5,932		34	%		5,476			34	%		8.3	%

Subtotal		3,032			72	%		2,498			68	%		21.4	%		12,414		73	%		11,575			72	%		7.2	%
Personal accident (A&H) ⁽¹⁾		937			22	%		911			25	%		2.9	%		3,655		21	%		3,532			22	%		3.5	%
Life		247			6	%		248			7	%		-0.9	%		956		6	%		968			6	%		-1.4	%

Total consolidated	$	4,216			100	%	$	3,657			100	%		15.3	%	$	17,025		100	%	$	16,075			100	%		5.9	%

Net premiums earned
Property and all other	$	1,261			29	%	$	1,087			28	%		16.0	%	$	4,704		28	%	$	4,101			26	%		14.7	%
Agriculture		426			10	%		263			7	%		62.3	%		1,678		10	%		1,872			12	%		-10.4	%
Casualty		1,522			35	%		1,367			36	%		11.3	%		5,759		35	%		5,292			34	%		8.8	%

Subtotal		3,209			74	%		2,717			71	%		18.1	%		12,141		73	%		11,265			72	%		7.8	%
Personal accident (A&H) ⁽¹⁾		920			21	%		894			23	%		2.8	%		3,567		21	%		3,499			22	%		1.9	%
Life		234			5	%		237			6	%		-1.2	%		905		6	%		913			6	%		-0.9	%

Total consolidated	$	4,363			100	%	$	3,848			100	%		13.4	%	$	16,613		100	%	$	15,677			100	%		6.0	%

Operating income (loss)
Property, casualty, and all other	$	680			82	%	$	314			64	%		116.6	%	$	2,515		78	%	$	2,002			76	%		25.6	%
Agriculture		(20	)		-2	%		(1	)		0	%		NM			63		2	%		(38	)		-1	%		NM
Personal accident (A&H) ⁽¹⁾		129			16	%		141			28	%		-7.4	%⁽²⁾		497		15	%		494			19	%		0.8	%
Life		35			4	%		38			8	%		-8.3	%		142		5	%		166			6	%		-14.3	%

Total consolidated	$	824			100	%	$	492			100	%		67.5	%	$	3,217		100	%	$	2,624			100	%		22.6	%

(1)	For purposes of this schedule only, A&H results from our Combined North American and International businesses, normally included in the Life and Insurance—Overseas General segments, respectively, are included in the Personal Accident (A&H) line items above.

(2)	A&H operating income for Q4 2013 and Q4 2012 includes non-recurring tax items, including a one off tax benefit in Q4 2013 and a Q4 2012 tax benefit from the favorable resolution of prior years’ tax matters. Excluding the non-recurring tax items, A&H operating income increased 3.1%.


Line of Business		Page 4

ACE Limited

Consolidated Premiums and Operating Income by Line of Business, Adjusted for Foreign Exchange

(in millions of U.S. dollars)

(Unaudited)

ACE Limited Consolidated Constant Dollar


	4Q-13		Constant $ 4Q-12⁽²⁾		Constant $ % Change 4Q-13 vs. 4Q-12			Full Year 2013		Constant $ Full Year 2012⁽²⁾		Constant $ % Change 2013 vs. 2012 ⁽²⁾
Net premiums written
Property, casualty, agriculture, and all other	$	3,032	$	2,468		22.9	%	$	12,414	$	11,470		8.2	%
Personal accident (A&H) ⁽¹⁾		937		896		4.7	%		3,655		3,493		4.7	%
Life		247		245		0.6	%		956		963		-0.8	%

Total consolidated	$	4,216	$	3,609		16.8	%	$	17,025	$	15,926		6.9	%

Net premiums earned
Property, casualty, agriculture, and all other	$	3,209	$	2,690		19.3	%	$	12,141	$	11,171		8.7	%
Personal accident (A&H) ⁽¹⁾		920		878		4.6	%		3,567		3,462		3.0	%
Life		234		234		0.0	%		905		909		-0.5	%

Total consolidated	$	4,363	$	3,802		14.8	%	$	16,613	$	15,542		6.9	%

Operating income
Property, casualty, agriculture, and all other	$	660	$	311		112.2	%	$	2,578	$	1,955		31.9	%
Personal accident (A&H) ⁽¹⁾		129		139		-7.0	%		497		490		1.3	%
Life		35		39		-9.2	%		142		167		-14.7	%

Total consolidated	$	824	$	489		68.4	%	$	3,217	$	2,612		23.1	%

(1)	For purposes of this schedule only, A&H results from our Combined North American and International businesses, normally included in the Life and Insurance—Overseas General segments, respectively, are included in the Personal Accident (A&H) line items above.

(2)	Prior periods on a constant dollar basis.


Line of Business 2		Page 5

ACE Limited

Insurance—North American

(in millions of U.S. dollars, except ratios)

(Unaudited)

Effective Q1 2013, the company’s Insurance—North American business is presented in two distinct reporting segments: Insurance—North American P&C (refer to page 7) and Insurance—North American Agriculture (refer to page 8). The below table shows the previous Insurance—North American business presentation and should be used for reference purposes only.

Insurance—North American


	4Q-13			3Q-13			2Q-13			1Q-13			4Q-12			Full Year 2013			Full Year 2012
Gross premiums written	$	2,656		$	3,581		$	3,076		$	2,068		$	2,528		$	11,381		$	10,741
Net premiums written		1,858			2,305			1,982			1,397			1,518			7,542			7,208
Net premiums earned		1,937			2,293			1,779			1,390			1,608			7,399			7,019
Losses and loss expenses		1,438			1,710			1,243			910			1,504			5,301			5,626
Policy acquisition costs		150			191			162			147			142			650			586
Administrative expenses		162			158			162			130			153			612			601

Underwriting income (loss)		187			234			212			203			(191	)		836			206
Net investment income		273			260			257			257			283			1,047			1,091
Interest expense		2			3			3			(2	)		3			6			12
Other income (expense)—operating		(7	)		(11	)		(12	)		(7	)		(8	)		(37	)		(49	)
Income tax expense (benefit)		69			88			87			87			(89	)		331			174

Operating income		382			392			367			368			170			1,509			1,062
Net realized gains (losses)		9			10			29			26			26			74			42
Net realized gains (losses) related to unconsolidated entities		19			16			14			14			21			63			58
Income tax expense on net realized gains (losses)		10			5			12			9			10			36			26

Net income	$	400		$	413		$	398		$	399		$	207		$	1,610		$	1,136

Combined ratio
Loss and loss expense ratio		74.2	%		74.6	%		69.9	%		65.5	%		93.6	%		71.6	%		80.2	%
Policy acquisition cost ratio		7.7	%		8.4	%		9.1	%		10.5	%		8.8	%		8.8	%		8.3	%
Administrative expense ratio		8.5	%		6.8	%		9.1	%		9.4	%		9.5	%		8.3	%		8.6	%

Combined ratio		90.4	%		89.8	%		88.1	%		85.4	%		111.9	%		88.7	%		97.1	%

Combined ratio excluding catastrophe losses and PPD		91.1	%		90.1	%		87.7	%		87.6	%		90.0	%		89.3	%		93.4	%
Catastrophe reinstatement premiums expensed - pre-tax	$	—		$	—		$	(1	)	$	—		$	(8	)	$	(1	)	$	(8	)
Catastrophe losses - pre-tax	$	14		$	23		$	53		$	11		$	338		$	101		$	441
Unfavorable (favorable) prior period development (PPD) - pre-tax	$	(28	)	$	(29	)	$	(47	)	$	(43	)	$	7		$	(147	)	$	(192	)
Loss and loss expense ratio excluding catastrophe losses and PPD		75.0	%		75.0	%		69.7	%		67.6	%		71.8	%		72.4	%		76.6	%
% Change versus prior year period
Net premiums written		22.5	%		-9.1	%		6.6	%		8.0	%		-6.5	%		4.6	%		5.2	%
Net premiums earned		20.4	%		-7.2	%		7.7	%		7.9	%		-3.2	%		5.4	%		1.6	%
Other ratios
Net premiums written/gross premiums written		70	%		64	%		64	%		68	%		60	%		66	%		67	%


Insurance—North American		Page 6

ACE Limited

Segment Results—Consecutive Quarters

(in millions of U.S. dollars, except ratios)

(Unaudited)

Insurance—North American P&C⁽¹⁾


	4Q-13			3Q-13			2Q-13			1Q-13			4Q-12			Full Year 2013			Full Year 2012
Gross premiums written	$	2,439		$	2,135		$	2,327		$	1,819		$	2,236		$	8,720		$	8,120
Net premiums written		1,602			1,500			1,529			1,284			1,434			5,915			5,349
Net premiums earned		1,511			1,444			1,428			1,338			1,345			5,721			5,147
Losses and loss expenses		985			963			950			878			1,241			3,776			3,715
Policy acquisition costs		153			159			142			143			139			597			558
Administrative expenses		164			153			159			125			157			601			608

Underwriting income (loss)		209			169			177			192			(192	)		747			266
Net investment income		266			254			250			251			277			1,021			1,066
Interest expense		1			3			3			(2	)		3			5			12
Other income (expense)—operating		1			(3	)		(4	)		1			—			(5	)		(17	)
Income tax expense (benefit)		73			75			79			85			(89	)		312			203

Operating income		402			342			341			361			171			1,446			1,100
Net realized gains (losses)		9			9			28			26			26			72			41
Net realized gains (losses) related to unconsolidated entities		19			16			14			14			21			63			58
Income tax expense on net realized gains (losses)		10			4			12			9			10			35			26

Net income	$	420		$	363		$	371		$	392		$	208		$	1,546		$	1,173

Combined ratio
Loss and loss expense ratio		65.2	%		66.7	%		66.6	%		65.6	%		92.2	%		66.0	%		72.2	%
Policy acquisition cost ratio		10.1	%		11.1	%		9.9	%		10.7	%		10.3	%		10.4	%		10.8	%
Administrative expense ratio		10.9	%		10.5	%		11.1	%		9.4	%		11.8	%		10.5	%		11.8	%

Combined ratio		86.2	%		88.3	%		87.6	%		85.7	%		114.3	%		86.9	%		94.8	%

Combined ratio excluding catastrophe losses and PPD		87.2	%		88.3	%		87.3	%		87.7	%		88.4	%		87.6	%		89.9	%
Catastrophe reinstatement premiums expensed - pre-tax	$	—		$	—		$	(1	)	$	—		$	(8	)	$	(1	)	$	(8	)
Catastrophe losses - pre-tax	$	12		$	21		$	50		$	11		$	334		$	94		$	430
Unfavorable (favorable) prior period development (PPD) - pre-tax ⁽²⁾	$	(28	)	$	(19	)	$	(47	)	$	(40	)	$	8		$	(134	)	$	(180	)
Loss and loss expense ratio excluding catastrophe losses and PPD		66.3	%		66.9	%		66.5	%		67.6	%		66.4	%		66.8	%		67.4	%
% Change versus prior year period
Net premiums written		11.8	%		9.3	%		11.8	%		9.3	%		6.0	%		10.6	%		9.2	%
Net premiums earned		12.3	%		10.6	%		12.7	%		8.9	%		9.0	%		11.1	%		3.6	%
Other ratios
Net premiums written/gross premiums written		66	%		70	%		66	%		71	%		64	%		68	%		66	%

(1)	Effective Q1 2013, the company’s Insurance—North American business is presented in two distinct reporting segments: Insurance—North American P&C and Insurance—North American Agriculture. Prior year amounts have been adjusted to conform to the new segment presentation.

(2)	For Q4 2013 and YTD 2013, favorable prior period development is net of $5 million and $20 million, respectively, of net earned premium adjustments on loss sensitive policies.


Insurance—North American P&C		Page 7

ACE Limited

Segment Results—Consecutive Quarters

(in millions of U.S. dollars, except ratios)

(Unaudited)

Insurance—North American Agriculture⁽¹⁾


	4Q-13			3Q-13			2Q-13			1Q-13			4Q-12			Full Year 2013			Full Year 2012
Gross premiums written	$	217		$	1,446		$	749		$	249		$	292		$	2,661		$	2,621
Net premiums written		256			805			453			113			84			1,627			1,859
Net premiums earned		426			849			351			52			263			1,678			1,872
Losses and loss expenses ⁽²⁾		453			747			293			32			263			1,525			1,911
Policy acquisition costs		(3	)		32			20			4			3			53			28
Administrative expenses		(2	)		5			3			5			(4	)		11			(7	)

Underwriting income (loss)		(22	)		65			35			11			1			89			(60	)
Net investment income		7			6			7			6			6			26			25
Interest expense		1			—			—			—			—			1			—
Other income (expense)—operating		(8	)		(8	)		(8	)		(8	)		(8	)		(32	)		(32	)
Income tax expense (benefit)		(4	)		13			8			2			—			19			(29	)

Operating income (loss)		(20	)		50			26			7			(1	)		63			(38	)
Net realized gains (losses) ⁽²⁾		—			1			1			—			—			2			1
Net realized gains (losses) related to unconsolidated entities		—			—			—			—			—			—			—
Income tax expense on net realized gains (losses)		—			1			—			—			—			1			—

Net income (loss)	$	(20	)	$	50		$	27		$	7		$	(1	)	$	64		$	(37	)

Combined ratio
Loss and loss expense ratio		106.3	%		88.0	%		83.4	%		61.9	%		100.3	%		90.9	%		102.1	%
Policy acquisition cost ratio		-0.5	%		3.8	%		5.6	%		7.5	%		1.2	%		3.2	%		1.5	%
Administrative expense ratio		-0.6	%		0.5	%		0.9	%		9.9	%		-2.0	%		0.6	%		-0.4	%

Combined ratio		105.2	%		92.3	%		89.9	%		79.3	%		99.5	%		94.7	%		103.2	%

Catastrophe reinstatement premiums - pre-tax	$	—		$	—		$	—		$	—		$	—		$	—		$	—
Catastrophe losses - pre-tax	$	2		$	2		$	3		$	—		$	4		$	7		$	11
Favorable prior period development (PPD) - pre-tax	$	—		$	(10	)	$	—		$	(3	)	$	(1	)	$	(13	)	$	(12	)
Loss and loss expense ratio excluding catastrophe losses and PPD		105.8	%		88.9	%		82.6	%		67.9	%		99.3	%		91.3	%		102.2	%
% Change versus prior year period
Net premiums written		203.6	%		-30.8	%		-8.0	%		-5.1	%		-69.0	%		-12.5	%		-4.7	%
Net premiums earned		62.3	%		-27.2	%		-8.8	%		-11.1	%		-38.6	%		-10.4	%		-3.6	%
Other ratios
Net premiums written/gross premiums written		118	%		56	%		60	%		45	%		29	%		61	%		71	%

(1)	Effective Q1 2013, the company’s Insurance—North American business is presented in two distinct reporting segments: Insurance—North American P&C and Insurance—North American Agriculture. Prior year amounts have been adjusted to conform to the new segment presentation.

(2)	Losses from fair value changes on crop derivatives are reclassified from Net realized gains (losses) to Losses and loss expenses for this presentation. Crop derivative losses for YTD 2013 were $1 million.


Insurance—North American Agriculture		Page 8

ACE Limited

Segment Results—Consecutive Quarters

(in millions of U.S. dollars, except ratios)

(Unaudited)

Insurance—Overseas General


	4Q-13			3Q-13			2Q-13			1Q-13			4Q-12			Full Year 2013			Full Year 2012
Gross premiums written	$	2,126		$	2,018		$	2,097		$	2,073		$	1,925		$	8,314		$	7,702
Net premiums written		1,699			1,571			1,630			1,620			1,476			6,520			5,863
Net premiums earned		1,700			1,611			1,563			1,459			1,497			6,333			5,740
Losses and loss expenses		835			712			768			747			832			3,062			2,862
Policy acquisition costs		405			349			360			339			357			1,453			1,353
Administrative expenses		258			263			251			236			239			1,008			935

Underwriting income		202			287			184			137			69			810			590
Net investment income		143			128			136			132			135			539			521
Interest expense		1			1			2			1			1			5			5
Other income (expense)—operating		(13	)		(16	)		(14	)		(5	)		(1	)		(48	)		(6	)
Income tax expense (benefit)		52			78			48			24			(44	)		202			106

Operating income		279			320			256			239			246			1,094			994
Net realized gains (losses)		(16	)		(8	)		8			34			44			18			103
Net realized gains (losses) related to unconsolidated entities		4			2			(3	)		6			1			9			3
Income tax expense on net realized gains (losses)		(4	)		—			2			22			11			20			27

Net income	$	271		$	314		$	259		$	257		$	280		$	1,101		$	1,073

Combined ratio
Loss and loss expense ratio		49.2	%		44.2	%		49.1	%		51.2	%		55.5	%		48.4	%		49.8	%
Policy acquisition cost ratio		23.8	%		21.6	%		23.0	%		23.2	%		23.8	%		22.9	%		23.6	%
Administrative expense ratio		15.1	%		16.4	%		16.1	%		16.2	%		16.1	%		15.9	%		16.3	%

Combined ratio		88.1	%		82.2	%		88.2	%		90.6	%		95.4	%		87.2	%		89.7	%

Combined ratio excluding catastrophe losses and PPD		91.6	%		89.4	%		90.5	%		90.7	%		92.5	%		90.5	%		92.2	%
Catastrophe reinstatement premiums expensed - pre-tax	$	—		$	—		$	—		$	—		$	(8	)	$	—		$	(8	)
Catastrophe losses - pre-tax	$	17		$	33		$	17		$	21		$	65		$	88		$	76
Favorable prior period development (PPD) - pre-tax	$	(76	)	$	(149	)	$	(52	)	$	(22	)	$	(30	)	$	(299	)	$	(226	)
Loss and loss expense ratio excluding catastrophe losses and PPD		52.6	%		51.4	%		51.3	%		51.3	%		52.9	%		51.7	%		52.4	%
% Change versus prior year period
Net premiums written as reported		15.1	%		13.5	%		10.5	%		6.0	%		7.1	%		11.2	%		4.2	%
Net premiums earned as reported		13.5	%		12.5	%		10.1	%		4.9	%		3.2	%		10.3	%		2.2	%
Net premiums written constant $		18.2	%														13.7	%
Net premiums earned constant $		16.5	%														12.7	%
Other ratios
Net premiums written/gross premiums written		80	%		78	%		78	%		78	%		77	%		78	%		76	%


Insurance—Overseas General		Page 9

ACE Limited

Segment Results—Consecutive Quarters

(in millions of U.S. dollars, except ratios)

(Unaudited)

Global Reinsurance


	4Q-13			3Q-13			2Q-13			1Q-13			4Q-12			Full Year 2013			Full Year 2012
Gross premiums written	$	154		$	264		$	345		$	294		$	149		$	1,057		$	1,070
Net premiums written		155			265			292			279			146			991			1,025
Net premiums earned		245			239			245			247			254			976			1,002
Losses and loss expenses		104			93			93			106			198			396			553
Policy acquisition costs		49			52			48			48			47			197			172
Administrative expenses		14			12			12			12			13			50			51

Underwriting income (loss)		78			82			92			81			(4	)		333			226
Net investment income		71			66			71			72			77			280			290
Interest expense		1			2			1			1			1			5			4
Other income (expense)—operating		2			1			1			—			—			4			1
Income tax expense (benefit)		5			16			7			8			(2	)		36			14

Operating income		145			131			156			144			74			576			499
Net realized gains (losses)		7			(5	)		31			20			12			53			6
Net realized gains (losses) related to unconsolidated entities		4			6			(3	)		8			8			15			14
Income tax expense on net realized gains (losses)		—			—			—			—			—			—			1

Net income	$	156		$	132		$	184		$	172		$	94		$	644		$	518

Combined ratio
Loss and loss expense ratio		42.5	%		38.9	%		37.7	%		43.0	%		78.2	%		40.5	%		55.2	%
Policy acquisition cost ratio		20.4	%		21.7	%		19.9	%		19.3	%		18.3	%		20.3	%		17.1	%
Administrative expense ratio		5.5	%		5.2	%		4.6	%		5.0	%		5.2	%		5.1	%		5.2	%

Combined ratio		68.4	%		65.8	%		62.2	%		67.3	%		101.7	%		65.9	%		77.5	%

Combined ratio excluding catastrophe losses and PPD		73.6	%		71.0	%		70.0	%		69.2	%		69.9	%		70.9	%		72.8	%
Catastrophe reinstatement premiums collected - pre-tax	$	1		$	2		$	1		$	—		$	9		$	4		$	11
Catastrophe losses - pre-tax	$	6		$	24		$	11		$	—		$	101		$	41		$	116
Favorable prior period development (PPD) - pre-tax ⁽¹⁾	$	(18	)	$	(32	)	$	(29	)	$	(5	)	$	(14	)	$	(84	)	$	(61	)
Loss and loss expense ratio excluding catastrophe losses and PPD		47.7	%		44.6	%		45.3	%		44.8	%		45.6	%		45.6	%		50.4	%
% Change versus prior year period
Net premiums written as reported		5.5	%		-13.6	%		-5.3	%		6.1	%		12.0	%		-3.3	%		4.7	%
Net premiums earned as reported		-3.7	%		-15.0	%		3.6	%		7.3	%		2.3	%		-2.6	%		0.0	%
Net premiums written constant $		5.3	%														-3.3	%
Net premiums earned constant $		-3.6	%														-2.5	%
Other ratios
Net premiums written/gross premiums written		101	%		100	%		85	%		95	%		99	%		94	%		96	%

(1)	For YTD 2013, favorable prior period development is net of $8 million of net earned premium adjustments on loss sensitive policies.


Global Reinsurance		Page 10

ACE Limited

Segment Results—Consecutive Quarters

(in millions of U.S. dollars)

(Unaudited)

Life


																Full Year			Full Year
	4Q-13			3Q-13			2Q-13			1Q-13			4Q-12			2013			2012
Gross premiums written	$	526		$	510		$	512		$	528		$	544		$	2,076		$	2,080
Net premiums written		504			479			487			502			517			1,972			1,979
Net premiums earned		481			467			480			477			489			1,905			1,916
Losses and loss expenses		139			141			145			157			148			582			611
Policy benefits ⁽¹⁾		136			138			110			131			142			515			521
(Gains) losses from fair value changes in separate account assets ⁽¹⁾		(9	)		(14	)		11			(4	)		(11	)		(16	)		(29	)
Policy acquisition costs		97			86			95			80			90			358			334
Administrative expenses		87			85			86			85			91			343			328
Net investment income		64			61			63			63			65			251			251

Life underwriting income ⁽²⁾		95			92			96			91			94			374			402
Interest expense		3			4			4			4			3			15			12
Other income (expense)—operating ⁽¹⁾		(4	)		(2	)		(7	)		(5	)		(4	)		(18	)		(12	)
Income tax expense		2			11			9			12			13			34			54

Operating income		86			75			76			70			74			307			324
Net realized gains (losses):
Mark-to-market on guaranteed living benefits derivative (net of related hedges)		149			39			33			78			138			299			(126	)
Foreign exchange gains (losses) and all other		5			4			3			49			51			61			54
Net realized gains (losses) related to unconsolidated entities		(2	)		(2	)		4			5			(7	)		5			(13	)
Income tax expense (benefit) on net realized gains (losses)		(1	)		(1	)		1			1			1			—			4

Net income	$	239		$	117		$	115		$	201		$	255		$	672		$	235

% Change versus prior year period
Net premiums written as reported		-2.6	%		-1.9	%		0.2	%		3.0	%		3.9	%		-0.4	%		3.4	%
Net premiums earned as reported		-1.5	%		-2.7	%		0.9	%		1.1	%		4.2	%		-0.6	%		3.1	%
Net premiums written constant $ ⁽³⁾		-1.4	%														0.2	%
Net premiums earned constant $		-0.4	%														-0.1	%

(1)

(Gains) losses from fair value changes in separate account assets that do not qualify for separate account reporting under GAAP are reclassified from Other income (expense) for purposes of presenting Life underwriting income. The offsetting movement in the separate account liabilities is included in Policy benefits.

(2)	We assess the performance of our Life business based on Life underwriting income which includes Net investment income and (Gains) losses from fair value changes in separate account assets.

(3)	Net premiums written and deposits breakdown:


					Constant $							Constant $
					% Change					Constant $		% Change
			Constant $		4Q-13 vs.			Full Year		Full Year		2013 vs.
	4Q-13		4Q-12		4Q-12			2013		2012		2012
Life excluding life reinsurance ⁽⁴⁾	$	650	$	631		3.0	%	$	2,509	$	2,265		10.8	%
Life reinsurance including variable annuity		68		76		-11.9	%		284		314		-9.8	%

Total Life	$	718	$	707		1.4	%	$	2,793	$	2,579		8.3	%

(4)

Includes deposits collected on universal life and investment contracts of $214 million for Q4 2013 and $197 million for Q4 2012 on a constant-dollar basis. For the year, includes deposits of $821 million for 2013 and $611 million for 2012 on a constant-dollar basis. Consistent with GAAP, premiums collected on universal life and investment contracts are considered deposits and excluded from revenues.


Life		Page 11

ACE Limited

Loss Reserve Rollforward

(in millions of U.S. dollars, except ratios)

(Unaudited)


	Unpaid Losses									Net Paid to
	Gross			Ceded			Net			Incurred Ratio
Balance at December 31, 2011	$	37,477		$	11,602		$	25,875
Losses and loss expenses incurred		2,361			557			1,804
Losses and loss expenses paid		(2,876	)		(931	)		(1,945	)		108	%
Other (incl. foreign exch. revaluation)		285			90			195

Balance at March 31, 2012	$	37,247		$	11,318		$	25,929
Losses and loss expenses incurred		2,851			732			2,119
Losses and loss expenses paid		(2,916	)		(893	)		(2,023	)		95	%
Other (incl. foreign exch. revaluation)		(332	)		(171	)		(161	)

Balance at June 30, 2012	$	36,850		$	10,986		$	25,864
Losses and loss expenses incurred		4,073			1,026			3,047
Losses and loss expenses paid		(3,078	)		(1,013	)		(2,065	)		68	%
Other (incl. foreign exch. revaluation)		355			163			192

Balance at September 30, 2012	$	38,200		$	11,162		$	27,038
Losses and loss expenses incurred		4,642			1,959			2,683
Losses and loss expenses paid		(4,913	)		(1,727	)		(3,186	)		119	%
Other (incl. foreign exch. revaluation)		17			5			12

Balance at December 31, 2012	$	37,946		$	11,399		$	26,547
Losses and loss expenses incurred		2,483			557			1,926
Losses and loss expenses paid		(2,987	)		(932	)		(2,055	)		107	%
Other (incl. foreign exch. revaluation)		(360	)		(106	)		(254	)

Balance at March 31, 2013	$	37,082		$	10,918		$	26,164
Losses and loss expenses incurred		3,007			757			2,250
Losses and loss expenses paid		(2,797	)		(941	)		(1,856	)		83	%
Other (incl. foreign exch. revaluation)		51			4			47

Balance at June 30, 2013	$	37,343		$	10,738		$	26,605
Losses and loss expenses incurred		3,617			962			2,655
Losses and loss expenses paid		(3,285	)		(942	)		(2,343	)		88	%
Other (incl. foreign exch. revaluation)		207			61			146

Balance at September 30, 2013	$	37,882		$	10,819		$	27,063
Losses and loss expenses incurred		3,322			805			2,517
Losses and loss expenses paid		(3,716	)		(993	)		(2,723	)		108	%
Other (incl. foreign exch. revaluation)		(45	)		(19	)		(26	)

Balance at December 31, 2013	$	37,443		$	10,612		$	26,831

Add net recoverable on paid losses		—			615			(615	)

Balance including net recoverable on paid losses	$	37,443		$	11,227		$	26,216


Loss Reserve Rollforward		Page 12

ACE Limited

Reinsurance Recoverable Analysis

(in millions of U.S. dollars)

(Unaudited)

Net Reinsurance Recoverable by Division


	December 31			September 30			June 30			March 31			December 31
	2013			2013			2013			2013			2012
Reinsurance recoverable on paid losses and loss expenses
Active operations	$	376		$	387		$	450		$	409		$	464
Brandywine and Other Run-off		356			338			326			284			303

Total	$	732		$	725		$	776		$	693		$	767

Reinsurance recoverable on unpaid losses and loss expenses
Active operations	$	9,576		$	9,843		$	9,720		$	9,786		$	10,199
Brandywine and Other Run-off		1,309			1,335			1,374			1,484			1,551

Total	$	10,885		$	11,178		$	11,094		$	11,270		$	11,750

Gross reinsurance recoverable
Active operations	$	9,952		$	10,230		$	10,170		$	10,195		$	10,663
Brandywine and Other Run-off		1,665			1,673			1,700			1,768			1,854

Total	$	11,617		$	11,903		$	11,870		$	11,963		$	12,517

Provision for uncollectible reinsurance ⁽¹⁾
Active operations	$	(251	)	$	(286	)	$	(274	)	$	(274	)	$	(277	)
Brandywine and Other Run-off		(139	)		(140	)		(154	)		(159	)		(162	)

Total	$	(390	)	$	(426	)	$	(428	)	$	(433	)	$	(439	)

Net reinsurance recoverable
Active operations	$	9,701		$	9,944		$	9,896		$	9,921		$	10,386
Brandywine and Other Run-off		1,526			1,533			1,546			1,609			1,692

Total	$	11,227		$	11,477		$	11,442		$	11,530		$	12,078

(1)	The provision for uncollectible reinsurance is based on a default analysis applied to gross reinsurance recoverables, net of approximately $2.5 billion of collateral.


Reinsurance Recoverable		Page 13

ACE Limited

Investment Portfolio

(in millions of U.S. dollars)

(Unaudited)


	December 31					September 30					June 30					March 31					December 31
	2013					2013					2013					2013					2012
Market Value
Fixed maturities available for sale	$	49,254				$	48,529				$	47,016				$	47,947				$	47,306
Fixed maturities held to maturity		6,263					6,493					6,762					7,213					7,633
Short-term investments		1,763					1,774					2,425					2,893					2,228

Total fixed maturities	$	57,280				$	56,796				$	56,203				$	58,053				$	57,167

Asset Allocation by Market Value
Treasury	$	2,327		4	%	$	2,367		4	%	$	2,578		5	%	$	2,750		5	%	$	2,794		5	%
Agency		1,454		3	%		1,471		3	%		1,586		3	%		2,090		4	%		2,024		4	%
Corporate and asset-backed		19,475		34	%		19,313		34	%		18,972		34	%		19,123		33	%		18,983		33	%
Mortgage-backed		12,273		21	%		11,862		21	%		11,445		20	%		12,064		21	%		12,589		22	%
Municipal		4,500		8	%		4,496		8	%		4,451		8	%		4,532		7	%		3,872		7	%
Non-U.S.		15,488		27	%		15,513		27	%		14,746		26	%		14,601		25	%		14,677		25	%
Short-term investments		1,763		3	%		1,774		3	%		2,425		4	%		2,893		5	%		2,228		4	%

Total fixed maturities	$	57,280		100	%	$	56,796		100	%	$	56,203		100	%	$	58,053		100	%	$	57,167		100	%

Credit Quality by Market Value
AAA	$	8,677		15	%	$	9,089		16	%	$	9,408		17	%	$	9,948		17	%	$	9,285		16	%
AA		21,520		38	%		20,716		36	%		20,557		36	%		22,036		38	%		22,014		39	%
A		11,168		19	%		11,267		20	%		11,105		20	%		11,150		19	%		10,760		19	%
BBB		7,193		12	%		7,147		13	%		6,765		12	%		6,596		11	%		6,591		12	%
BB		4,418		8	%		4,120		7	%		3,940		7	%		4,010		7	%		4,146		7	%
B		3,940		7	%		4,088		7	%		4,056		7	%		3,956		7	%		3,846		6	%
Other		364		1	%		369		1	%		372		1	%		357		1	%		525		1	%

Total fixed maturities	$	57,280		100	%	$	56,796		100	%	$	56,203		100	%	$	58,053		100	%	$	57,167		100	%

Cost/Amortized Cost
Fixed maturities available for sale	$	48,406				$	47,481				$	45,988				$	45,470				$	44,666
Fixed maturities held to maturity		6,098					6,306					6,576					6,867					7,270
Short-term investments		1,763					1,774					2,425					2,893					2,228

Subtotal fixed maturities		56,267					55,561					54,989					55,230					54,164
Equity securities		841					835					843					781					707
Other investments		2,671					2,616					2,543					2,544					2,465

Total investment portfolio	$	59,779				$	59,012				$	58,375				$	58,555				$	57,336

Avg. duration of fixed maturities		4.0 years					4.0 years					4.1 years					4.0 years					3.9 years
Avg. market yield of fixed maturities		3.0	%				2.9	%				2.9	%				2.3	%				2.3	%
Avg. credit quality		A/Aa					A/Aa					A/Aa					A/Aa					A/Aa
Avg. yield on invested assets		3.8	%				3.6	%				3.7	%				3.7	%				3.8	%


Investments		Page 14

ACE Limited

Investment Portfolio—2

(in millions of U.S. dollars)

(Unaudited)

Mortgage-backed Fixed Income Portfolio

Mortgage-backed securities


	S&P Credit Rating
	AAA		AA		A		BBB		BB and below		Total
Market Value at December 31, 2013
Agency residential mortgage-backed (RMBS)	$	—	$	10,141	$	—	$	—	$	—	$	10,141
Non-agency RMBS		56		8		26		15		186		291
Commercial mortgage-backed		1,811		13		10		7		—		1,841

Total mortgage-backed securities at market value	$	1,867	$	10,162	$	36	$	22	$	186	$	12,273

U.S. Corporate and Asset-backed Fixed Income Portfolios


	S&P Credit Rating
	Investment Grade
	AAA		AA		A		BBB		Total
Market Value at December 31, 2013
Asset-backed	$	542	$	91	$	—	$	—	$	633
Banks		—		—		2,380		320		2,700
Basic Materials		—		—		94		330		424
Communications		—		49		473		773		1,295
Consumer, Cyclical		—		97		288		315		700
Consumer, Non-Cyclical		52		571		867		669		2,159
Diversified Financial Services		—		77		223		114		414
Energy		33		34		192		668		927
Industrial		—		355		328		272		955
Utilities		—		10		541		480		1,031
All Others		54		134		566		549		1,303

Total	$	681	$	1,418	$	5,952	$	4,490	$	12,541


	S&P Credit Rating
	Below Investment Grade
	BB		B		CCC		Total
Market Value at December 31, 2013
Asset-backed	$	—	$	4	$	17	$	21
Banks		1		4		—		5
Basic Materials		169		136		10		315
Communications		557		439		15		1,011
Consumer, Cyclical		485		619		14		1,118
Consumer, Non-Cyclical		545		873		37		1,455
Diversified Financial Services		134		72		—		206
Energy		730		334		34		1,098
Industrial		345		405		30		780
Utilities		277		22		—		299
All Others		228		385		13		626

Total	$	3,471	$	3,293	$	170	$	6,934


Investments 2		Page 15

ACE Limited

Investment Portfolio—3

(in millions of U.S. dollars)

(Unaudited)

Non-U.S. Fixed Income Portfolio

December 31, 2013


Non-U.S. Government Securities	Market Value by S&P Credit Rating
	AAA		AA		A		BBB		BB and below		Total
United Kingdom	$	1,225	$	—	$	—	$	—	$	—	$	1,225
Republic of Korea		—		633		44		—		—		677
Canada		566		—		—		—		—		566
United Mexican States		—		1		363		108		—		472
Germany		352		4		—		—		—		356
Province of Ontario		—		337		—		—		—		337
Japan		—		289		—		—		—		289
Federative Republic of Brazil		—		—		201		58		—		259
Kingdom of Thailand		—		—		194		58		—		252
Province of Quebec		—		—		252		—		—		252
Other Non-U.S. Government Securities		706		1,102		223		252		287		2,570

Total	$	2,849	$	2,366	$	1,277	$	476	$	287	$	7,255


Non-U.S. Corporate Securities	Market Value by S&P Credit Rating
	AAA		AA		A		BBB		BB and below		Total
United Kingdom	$	96	$	67	$	769	$	346	$	196	$	1,474
Canada		158		124		300		374		167		1,123
Australia		88		89		304		115		75		671
United States		7		130		102		214		140		593
France		71		61		197		129		75		533
Netherlands		18		258		102		86		24		488
Germany		155		40		131		100		58		484
Euro Supranational		186		50		—		1		—		237
Switzerland		2		22		54		113		39		230
Sweden		58		109		44		3		4		218
Other Non-U.S. Corporate Securities		95		260		736		679		412		2,182

Total	$	934	$	1,210	$	2,739	$	2,160	$	1,190	$	8,233

Non-U.S. Corporate Investment Portfolio

Countries represent the ultimate parent company’s country of risk. Non-U.S. corporate securities could be issued by foreign subsidiaries of U.S. corporations.


Investments 3		Page 16

ACE Limited

Investment Portfolio—4

(in millions of U.S. dollars)

(Unaudited)

Fixed Maturity Investment Portfolio

Top 10 Global Corporate Exposures


	December 31, 2013	Market Value		Rating
1	JP Morgan Chase & Co	$	504	A
2	Goldman Sachs Group Inc		444	A-
3	General Electric Co		414	AA+
4	Wells Fargo & Co		283	A+
5	Citigroup Inc		278	A-
6	Morgan Stanley		274	A-
7	Verizon Communications Inc		263	BBB+
8	Bank of America Corp		258	A-
9	HSBC Holdings Plc		224	A+
10	AT&T INC		198	A-


Investments 4		Page 17

ACE Limited

Net Realized and Unrealized Gains (Losses)

(in millions of U.S. dollars)

(Unaudited)


	Three months ended December 31, 2013									Year ended December 31, 2013
	Net Realized Gains (Losses)⁽¹⁾			Net Unrealized Gains (Losses)			Net Impact			Net Realized Gains (Losses) ⁽¹⁾			Net Unrealized Gains (Losses)			Net Impact
Fixed maturities	$	6		$	(219	)	$	(213	)	$	90		$	(1,880	)	$	(1,790	)
Fixed income derivatives		16			—			16			78			—			78

Total fixed maturities		22			(219	)		(197	)		168			(1,880	)		(1,712	)

Public equity		2			—			2			15			(41	)		(26	)
Private equity		27			17			44			90			51			141

Total equity		29			17			46			105			10			115

Mark-to-market gains from derivative transactions ⁽²⁾		149			—			149			298			—			298
Foreign exchange gains (losses) ⁽²⁾		(16	)		—			(16	)		29			—			29
Other		(3	)		2			(1	)		(3	)		3			—
Partially-owned entities ⁽³⁾		(2	)		—			(2	)		—			—			—
Income tax expense (benefit)		5			(55	)		(50	)		56			(408	)		(352	)

Net gains (losses)	$	174		$	(145	)	$	29		$	541		$	(1,459	)	$	(918	)

(1)	Other-than-temporary impairments for the quarter includes $7 million for fixed maturities and $1 million for public equity. Year to date other-than-temporary impairments includes $18 million of fixed maturities, $2 million for private equity, and $2 million for public equity.

(2)

Includes $149 million of realized gains from variable annuity reinsurance for the quarter which comprises $315 million in mark-to-market gains from derivative transactions (including a $92 million realized gain related to an out-of-period adjustment for an error in a market valuation model), net of $166 million of losses on applicable hedges. The variable annuity reinsurance foreign exchange gains for the quarter were $6 million. For the year, mark-to-market gains from derivative transactions of $298 million includes $299 million of realized gains from variable annuity reinsurance which comprises $878 million in mark-to-market gains from derivative transactions, net of $579 million of losses on applicable hedges. The variable annuity reinsurance foreign exchange gains for the year were $51 million.

(3)	Partially-owned entities are investments where we hold more than an insignificant percentage of the investee’s shares. The net income or loss is included in other income (expense).


	Three months ended December 31, 2012									Year ended December 31, 2012
	Net Realized Gains (Losses)⁽⁴⁾			Net Unrealized Gains (Losses)			Net Impact			Net Realized Gains (Losses) ⁽⁴⁾			Net Unrealized Gains (Losses)			Net Impact
Fixed maturities	$	81		$	(131	)	$	(50	)	$	230		$	1,005		$	1,235
Fixed income derivatives		(3	)		—			(3	)		(6	)		—			(6	)

Total fixed maturities		78			(131	)		(53	)		224			1,005			1,229

Public equity		6			9			15			4			61			65
Private equity		36			16			52			79			49			128

Total equity		42			25			67			83			110			193

Mark-to-market (losses) from derivative transactions ⁽⁵⁾		138			—			138			(130	)		—			(130	)
Foreign exchange gains (losses) ⁽⁵⁾		48			—			48			(16	)		—			(16	)
Other		2			—			2			3			5			8
Partially-owned entities ⁽⁶⁾		(13	)		—			(13	)		(24	)		(4	)		(28	)
Income tax expense (benefit)		22			(36	)		(14	)		58			198			256

Net gains (losses)	$	273		$	(70	)	$	203		$	82		$	918		$	1,000

(4)	Other-than-temporary impairments for the quarter includes $7 million for fixed maturities. Year to date other-than-temporary impairments includes $25 million of fixed maturities, $7 million for private equity, and $5 million for public equity.

(5)

Includes $138 million of realized gains from variable annuity reinsurance for the quarter which comprises $127 million in mark-to-market gains from derivative transactions and $11 million of gains on applicable hedges. The variable annuity reinsurance foreign exchange gains for the quarter were $35 million. For the year, mark-to-market losses from derivative transactions of $130 million includes $126 million of realized losses from variable annuity reinsurance which comprises $171 million in mark-to-market gains from derivative transactions, net of $297 million of losses on applicable hedges. The variable annuity reinsurance foreign exchange gains for the year were $33 million.

(6)	Partially-owned entities are investments where we hold more than an insignificant percentage of the investee’s shares. The net income or loss is included in other income (expense).


Investment Gains (Losses)		Page 18

ACE Limited

Capital Structure

(in millions of U.S. dollars, except ratios)

(Unaudited)


	December 31 2013			September 30 2013			June 30 2013			March 31 2013			December 31 2012			December 31 2011
Total short-term debt ⁽¹⁾	$	1,901		$	1,902		$	1,901		$	1,402		$	1,401		$	1,251
Total long-term debt		3,807			3,807			3,807			4,307			3,360			3,360

Total debt	$	5,708		$	5,709		$	5,708		$	5,709		$	4,761		$	4,611

Total trust preferred securities	$	309		$	309		$	309		$	309		$	309		$	309

Total shareholders’ equity	$	28,825		$	28,218		$	27,295		$	27,942		$	27,531		$	24,332

Total capitalization	$	34,842		$	34,236		$	33,312		$	33,960		$	32,601		$	29,252
Tangible capital ⁽²⁾	$	29,438		$	28,771		$	27,917		$	29,051		$	27,626		$	24,453
Leverage ratios
Debt/ total capitalization		16.4	%		16.7	%		17.1	%		16.8	%		14.6	%		15.8	%
Debt plus trust preferred securities/ total capitalization		17.3	%		17.6	%		18.1	%		17.7	%		15.6	%		16.8	%
Debt/ tangible capital		19.4	%		19.8	%		20.4	%		19.7	%		17.2	%		18.9	%
Debt plus trust preferred securities/ tangible capital		20.4	%		20.9	%		21.6	%		20.7	%		18.4	%		20.1	%

Note: As of December 31, 2013, there was $1.2 billion usage of credit facilities on a total commitment of $1.9 billion.

(1)	Repurchase agreements in the amount of $851 million matured during the quarter, and there were new repurchase agreements in the amount of $850 million.

(2)	Tangible capital is equal to total capitalization less goodwill and other intangible assets.


Capital Structure		Page 19

ACE Limited

Computation of Basic and Diluted Earnings Per Share

(in millions of U.S. dollars, except share and per share data)

(Unaudited)


	Three months ended December 31					Year ended December 31
	2013			2012		2013			2012
Numerator
Operating income to common shares	$	824		$	492	$	3,217		$	2,624
Net realized gains (losses), net of income tax		174			273		541			82

Net income	$	998		$	765	$	3,758		$	2,706

Rollforward of Common Shares Outstanding
Shares—beginning of period		340,069,972			339,735,109		340,321,534			336,927,276
Repurchase of shares ⁽¹⁾		(564,911	)		—		(3,266,531	)		(100,000	)
Shares issued, excluding option exercises		12,988			55,188		1,080,261			1,092,389
Issued for option exercises		275,886			531,237		1,658,671			2,401,869

Shares—end of period		339,793,935			340,321,534		339,793,935			340,321,534

Denominator
Weighted average shares outstanding		340,897,890			340,821,273		340,906,490			339,843,438
Effect of other dilutive securities		3,309,307			2,920,626		3,241,085			2,903,512

Adj. wtd. avg. shares outstanding and assumed conversions		344,207,197			343,741,899		344,147,575			342,746,950

Basic earnings per share
Operating income	$	2.41		$	1.44	$	9.43		$	7.72
Net realized gains (losses), net of income tax		0.52			0.80		1.59			0.24

Net income	$	2.93		$	2.24	$	11.02		$	7.96

Diluted earnings per share
Operating income	$	2.39		$	1.43	$	9.35		$	7.65
Net realized gains (losses), net of income tax		0.51			0.79		1.57			0.24

Net income	$	2.90		$	2.22	$	10.92		$	7.89

(1)	For the period January 1, 2014 through January 27, 2014 we repurchased 1 million shares totaling $97 million, pursuant to a plan adopted under SEC Rule 10b5-1 and in accordance with the provisions of SEC Rule 10b-18.


Earnings per share		Page 20

ACE Limited

Non-GAAP Financial Measures

(in millions of U.S. dollars)

(Unaudited)

Regulation G — Non-GAAP Financial Measures

In presenting our results, we have included and discussed certain non-GAAP measures. These non-GAAP measures, which may be defined differently by other companies, are important for an understanding of our overall results of operations and financial condition. However, they should not be viewed as a substitute for measures determined in accordance with generally accepted accounting principles (GAAP).

Operating income, P&C underwriting income, adjusted losses and loss expenses, adjusted realized gains (losses), operating ROE, P&C combined ratio, and P&C combined ratio excluding catastrophe losses and prior period development (PPD) are non-GAAP financial measures and include realized gains and losses associated with fair value changes on our crop derivatives. These derivatives were purchased to provide economic benefit, in a manner similar to reinsurance protection, in the event that a significant decline in commodity pricing will impact underwriting results. As such, we view changes in the fair value of these derivatives as part of the results of our operations and therefore realized gains and losses from these derivatives are reclassified to losses and loss expenses. Pre-tax losses from fair value changes in these derivatives were $1 million for YTD 2013.

Global P&C net premiums written is a non-GAAP financial measure and is defined as consolidated net premiums written excluding net premiums written of the company’s Life and Insurance – North American Agriculture segments. We believe that this measure is useful and meaningful to investors as it is used by management to assess the company’s global P&C operations which are the most economically similar. We exclude the Insurance – North American Agriculture and Life segments because the results of these businesses do not always correlate with the results of our global P&C operations.

Other income (expense) – operating is a non-GAAP financial measure and excludes the portion of net realized gains and losses related to unconsolidated entities from other income (expense). These gains and losses are reported within Net realized gains (losses) and represent the non-operating activities of entities where we hold more than an insignificant percentage of the investee’s shares. We exclude these gains and losses from other income (expense) to enhance the understanding of our core results of operations as they are heavily influenced by, and fluctuate in part according to market conditions.

In presenting our segment operating results, we have shown our performance with reference to underwriting results. Underwriting results are calculated by subtracting losses and loss expenses, policy benefits, policy acquisition costs, and administrative expenses from net premiums earned. We use underwriting results and operating ratios to monitor the results of our operations without the impact of certain factors, including investment income, other income and expenses, interest and income tax expense, and net realized gains (losses). Life underwriting income includes net investment income and gains (losses) from fair value changes in separate account assets that do not qualify for separate account reporting under GAAP.

We provide financial measures such as gross premiums written, net premiums written, net premiums earned, and operating income on a constant-dollar basis. We believe it is useful to evaluate the trends in these measures exclusive of the effect of fluctuations in exchange rates between the U.S. dollar and the currencies in which our international business is transacted, as these exchange rates could fluctuate significantly between periods and distort the analysis of trends. The impact is determined by assuming constant foreign exchange rates between periods by translating prior period results using the same local currency exchange rates as the comparable current period.

P&C expense ratio excluding A&H is a non-GAAP financial measure and excludes the impact of our A&H business from our consolidated expense ratio. The expense ratio for the A&H business is typically higher than our traditional P&C business, and we believe that this measure provides better comparison to our peer companies that may not have a significant A&H block of business.

Loss and loss expense ratio excluding the impact of catastrophe losses and PPD is a non-GAAP financial measure. The loss ratio numerator includes Losses and loss expenses adjusted to exclude catastrophe losses and PPD. The loss ratio denominator includes Net premiums earned adjusted to exclude the amount of reinstatement premiums (expensed) collected. In periods where there are adjustments on loss sensitive policies, these adjustments are excluded from PPD and net earned premiums when calculating this ratio. We believe that excluding the impact of catastrophe losses and PPD provides a better evaluation of our core underwriting performance and enhances the understanding of the trends in our property & casualty business that may be obscured by these items.

Combined ratio excluding catastrophe losses and PPD is a non-GAAP financial measure. The ratio numerator includes losses and loss expenses, policy acquisition costs, and administrative expenses adjusted to exclude catastrophe losses and PPD. The ratio denominator includes net premiums earned adjusted to exclude the amount of reinstatement premiums (expensed) collected and net earned premium adjustments on loss sensitive policies. We believe that excluding the impact of catastrophe losses and PPD provides a better evaluation of our core underwriting performance and enhances the understanding of the trends in our property & casualty business that may be obscured by these items.

Life net premiums written and deposits collected, excluding life reinsurance, is a non-GAAP financial measure. Deposits collected on universal life and investment contracts (life deposits) are properly not reflected as revenues in our consolidated statements of operations in accordance with GAAP. However, we include life deposits in presenting growth in our Life business because new life deposits are an important component of production and key to our efforts to grow our business. However, we exclude results associated with life reinsurance as there is no new life reinsurance business currently being written.

Operating income or income excluding net realized gains (losses), net of tax, is a common performance measurement for insurance companies and non-GAAP financial measure. We believe this presentation enhances the understanding of our results of operations by highlighting the underlying profitability of our insurance business. We exclude net realized gains (losses) and net realized gains (losses) included in other income (expense) related to partially owned entities because the amount of these gains (losses) is heavily influenced by, and fluctuates in part according to, the availability of market opportunities. Operating income or income excluding net realized gains (losses) should not be viewed as a substitute for net income determined in accordance with GAAP.

Book value excluding unrealized gains (losses) on investments, or Adjusted shareholders’ equity, is a non-GAAP financial measure and is shareholders’ equity excluding unrealized gains (losses) on investments, net of tax. We believe this measure is useful as it removes the effect of changing prices on invested assets which is heavily influenced by market conditions.

Operating return on equity (ROE) or ROE calculated using income excluding net realized gains (losses) is an annualized non-GAAP financial measure and is calculated as operating income divided by average shareholders’ equity, as adjusted, for the period. To annualize a quarterly rate, multiply by four. Operating ROE is a useful measure as it enhances the understanding of the return on shareholders’ equity by highlighting the underlying profitability relative to shareholders’ equity excluding the effect of unrealized gains and losses on our investments.

Operating effective tax rate is a non-GAAP financial measure. The numerator excludes tax on net realized gains (losses). The denominator excludes net realized gains (losses), before tax. We exclude net realized gains (losses) and the related tax impact because these amounts are heavily influenced by, and fluctuate in part according to, the availability of market opportunities. Operating effective tax rate should not be viewed as a substitute for effective tax rate determined in accordance with GAAP.

Tangible book value per common share is shareholders’ equity less goodwill and other intangible assets divided by the shares outstanding. We believe that goodwill and other intangible assets are not indicative of our underlying insurance results or trends and make book value comparisons to less acquisitive peer companies less meaningful. A reconciliation of tangible book value per share is provided on page 23. Tangible book value per common share excluding 2013 acquisitions is shareholders’ equity less goodwill and other intangible assets divided by the shares outstanding. The numerator adds back the goodwill and other intangible assets related to the 2013 acquisitions of Fianzas Monterrey and ABA Seguros in order to adjust for the distortive effect of acquisitions.


Reconciliation Non-GAAP		Page 21

ACE Limited

Non-GAAP Financial Measures—2

(in millions of U.S. dollars, except ratios)

(Unaudited)

Regulation G—Non-GAAP Financial Measures (continued)

The following table presents the reconciliation of Net income to Operating income:


	4Q-13			3Q-13			2Q-13			1Q-13			4Q-12			Full Year 2013			Full Year 2012
Net income, as reported	$	998		$	916		$	891		$	953		$	765		$	3,758		$	2,706
Adjusted net realized gains (losses)		154			41			104			206			272			505			78
Net realized gains (losses) related to unconsolidated entities ⁽¹⁾		25			22			12			33			23			92			62
Income tax expense on net realized gains (losses)		5			4			15			32			22			56			58

Operating income	$	824		$	857		$	790		$	746		$	492		$	3,217		$	2,624


(1) Realized gains (losses) on partially-owned entities, which are investments where we hold more than an insignificant percentage of the investee’s shares. The net income or loss is included in other income (expense).

The following table presents the reconciliation of effective tax rate to the operating effective tax rate:

	4Q-13			3Q-13			2Q-13			1Q-13			4Q-12			Full Year 2013			Full Year 2012
Tax expense (benefit), as reported	$	88		$	155		$	115		$	122		$	(135	)	$	480		$	270
Tax expense on net realized gains (losses)		5			4			15			32			22			56			58

Tax expense (benefit), adjusted	$	83		$	151		$	100		$	90		$	(157	)	$	424		$	212

Income before tax, as reported	$	1,086		$	1,071		$	1,006		$	1,075		$	630		$	4,238		$	2,976
Less: realized gains (losses)		154			41			104			206			272			505			78
Less: realized gains (losses) related to unconsolidated entities		25			22			12			33			23			92			62

Operating income before tax	$	907		$	1,008		$	890		$	836		$	335		$	3,641		$	2,836

Effective tax rate		8.1	%		14.4	%		11.5	%		11.3	%		-21.4	%		11.3	%		9.1	%
Adjustment for tax impact of net realized gains (losses)		1.1	%		0.5	%		-0.3	%		-0.5	%		-25.4	%		0.3	%		-1.6	%

Operating effective tax rate		9.2	%		14.9	%		11.2	%		10.8	%		-46.8	%		11.6	%		7.5	%


The following table presents the reconciliation of ROE to Operating ROE:
	4Q-13												4Q-12			Full Year 2013			Full Year 2012
Net income	$	998											$	765		$	3,758		$	2,706
Operating income	$	824											$	492		$	3,217		$	2,624
Equity—beginning of period, as reported	$	28,218											$	26,963		$	27,531		$	24,332
Less: unrealized gains (losses) on investments, net of deferred tax		1,319												2,703			2,633			1,715

Equity—beginning of period, as adjusted	$	26,899											$	24,260		$	24,898		$	22,617

Equity—end of period, as reported	$	28,825											$	27,531		$	28,825		$	27,531
Less: unrealized gains (losses) on investments, net of deferred tax		1,174												2,633			1,174			2,633

Equity—end of period, as adjusted	$	27,651											$	24,898		$	27,651		$	24,898

Average equity, as reported	$	28,522											$	27,247		$	28,178		$	25,932
Average equity, as adjusted	$	27,275											$	24,579		$	26,275		$	23,758
Operating ROE		12.1	%											8.0	%		12.2	%		11.0	%
ROE		14.0	%											11.2	%		13.3	%		10.4	%


Reconciliation Non-GAAP 2		Page 22

ACE Limited

Book Value and Book Value per Common Share

(in millions of U.S. dollars, except share and per share data)

(Unaudited)

Reconciliation of Book Value per Common Share


	December 31 2013			September 30 2013			June 30 2013			March 31 2013			December 31 2012
Shareholders’ equity	$	28,825		$	28,218		$	27,295		$	27,942		$	27,531
Less: goodwill and other intangible assets		5,404			5,465			5,395			4,909			4,975

Numerator for tangible book value per share	$	23,421		$	22,753		$	21,900		$	23,033		$	22,556

Book value—% change over prior quarter ⁽¹⁾		2.2	%		3.4	%		-2.3	%		1.5	%		2.1	%
Tangible book value—% change over prior quarter ⁽¹⁾		2.9	%		3.9	%		-4.9	%		2.1	%		2.7	%
Denominator		339,793,935			340,069,972			340,086,269			340,045,256			340,321,534

Book value per common share	$	84.83		$	82.98		$	80.26		$	82.17		$	80.90
Tangible book value per common share	$	68.93		$	66.91		$	64.40		$	67.74		$	66.28
Reconciliation of Book Value
Shareholders’ equity, beginning of quarter	$	28,218		$	27,295		$	27,942		$	27,531		$	26,963
Operating income		824			857			790			746			492
Net realized gains (losses), net of tax		174			59			101			207			273
Net unrealized gains (losses), net of tax		(145	)		1			(1,220	)		(95	)		(70	)
Repurchase of shares		(57	)		(21	)		(58	)		(154	)		—
Dividend declared on common shares		(174	)		(176	)		(174	)		(168	)		(168	)
Cumulative translation, net of tax		(66	)		114			(168	)		(156	)		(37	)
Pension liability		(11	)		(1	)		(2	)		14			(20	)
Other⁽²⁾		62			90			84			17			98

	$	28,825		$	28,218		$	27,295		$	27,942		$	27,531

(1)

At December 31, 2013, book value increased 4.7% and tangible book value increased 3.8% from December 31, 2012. At December 31, 2013, book value excluding unrealized gains (losses) on investments increased 11.1% from December 31, 2012. Unrealized gains (losses) on investments at December 31, 2013 and 2012 were $1,174 million and $2,633 million, respectively.

(2)	Other primarily includes proceeds from exercise of stock options and stock compensation.


Reconciliation Book Value		Page 23

ACE Limited

Glossary

ACE Limited Consolidated comprises all segments including Corporate.

Operating return on equity (ROE) or ROE calculated using income excluding net realized gains (losses): Operating income or income excluding net realized gains (losses), net of tax, divided by average shareholders’ equity for the period excluding unrealized gains (losses) on investments, net of tax. To annualize a quarterly rate, multiply by four.

Book value per common share: Shareholders’ equity divided by the shares outstanding.

Combined ratio: The sum of the loss and loss expense ratio, acquisition cost ratio and the administrative expense ratio excluding life business.

Operating effective tax rate: Income tax expense excluding tax expense (benefit) on net realized gains (losses) divided by income excluding net realized gains (losses) before tax.

Life underwriting income: Net premiums earned and net investment income less losses and loss expenses, policy benefits, acquisition costs, and administrative expenses. In addition, Life underwriting income includes gains/losses from fair value changes in separate account assets that do not qualify for separate account reporting under GAAP.

Tangible book value per common share: Shareholders’ equity less goodwill and other intangible assets divided by the shares outstanding.

Average market yield of fixed maturities: Weighted average yield to maturity of our fixed income portfolio based on the market prices of the holdings as of that date.

Average yield on invested assets: Net investment income, excluding non-recurring items, divided by average cost of fixed maturities and other investments, and average market value of equity securities.

Tangible capital: Total capitalization less goodwill and other intangible assets.

Total capitalization: Short-term debt, long-term debt, trust preferreds, and shareholders’ equity.

NM: Not meaningful.


Glossary		Page 24

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