ACE Limited

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Chubb Ltd.
Traded as NYSECB
S&P 500 Component
Industry Insurance and Reinsurance
Founded Hamilton, Bermuda (1985 (1985))
Headquarters Zürich, Switzerland
Area served
Key people
Evan G. Greenberg (CEO, Chairman)
Products Property and Casualty and Health
Life insurance
Revenue Increase US$ 19.138 billion (2015)[1]
Increase US$ 03.296 billion (2015)[1]
Increase US$ 02.834 billion (2015)[1]
Total assets Increase US$ 102.306 billion (2015)[1]
Number of employees

Chubb Limited, incorporated in Zurich, Switzerland, is the parent company of the Chubb, a global provider of insurance products covering property and casualty, accident and health, reinsurance, and life insurance. ACE operates in 54 countries and territories and in the Lloyd's insurance market in London. Clients of Chubb consist of multinational corporations and local businesses, individuals, and insurers seeking reinsurance coverage.

In 2014, the group had $98.2 billion in assets, $23.4 billion of gross written premiums and approximately 21,000 employees.[2] ACE trades on the NYSE and is a component of the S&P 500 index. Its core operating insurance companies are rated "AA" (Very Strong) for financial strength by Standard & Poor's[3][4] and "A++" (Superior) by A. M. Best[5][6] with stable outlooks from both agencies. Fitch rates ACE Limited and its subsidiaries "AA" (Very Strong) for financial strength, "AA-" for issuer default and "A+" for senior debt.[7] Moody's rates the U.S. companies "A1" and the unsecured loan notes "A3".[8]

On July 1, 2015, ACE announced that it will acquire Chubb Corporation for $28.3 billion in cash and stock.[9]
ACE has committed that Chubb's current headquarters in Warren, New Jersey, USA, will have a substantial portion of the headquarters function for the combined company's North American Division. Importantly, the combined company will adopt the Chubb name.

Business structure[edit]

ACE provides insurance and reinsurance products and services through several operating units.[10]

North American[edit]

ACE USA provides commercial property insurance and casualty (P&C), risk management and accident and health (A&H) coverages through retail brokers. ACE Agriculture offers crop, farm and agribusiness P&C coverages through agents and brokers. ACE Westchester offers commercial P&C excess and surpluslines through wholesale brokers. ACE Bermuda provides liability, property, political risk coveragesand captive programs through large international brokers. ACE Private Risk Services offers high-value personal lines coverages through independent agents and brokers. ACE Commercial Risk Services provides specialty small business coverages through agents and brokers.


ACE International provides commercial P&C, A&H, and traditional and specialty personal lines through retail brokers, agents and other channels in 51 countries outside North America. ACE Global Markets offers commercial P&C excess and surplus lines and A&H sold by wholesale brokers and through Lloyd’s. In North America, Combined Insurance, acquired by ACE in 2008, provides personal accident and supplemental health insurance through captive agents.[11]


ACE Tempest Re offers P&C and life reinsurance sold worldwide by reinsurance brokers.


ACE Life provides protection and savings products through agents, bancassurance and other channels in Asia, Latin America, and the Middle East. Combined Insurance offers personal accident and supplemental health coverages sold by captive agents in North America.



ACE Limited was established in 1985, funded by a group of 34 U.S. companies seeking difficult-to-obtain Excess Liability and Directors and Officers (D&O) insurance coverage.[12] That year, ACE and its Bermuda subsidiary, incorporated in the Cayman Islands and headquartered in Hamilton, Bermuda, wrote its first insurance policy with John Cox as its President and CEO. In 1987 the company assumed management of Corporate Officers & Directors Assurance Limited (CODA), expanding ACE Bermuda's product line.[12]

Walter Scott became Chairman, President, and CEO of ACE in 1990 and saw the company listed on the New York Stock Exchange in 1993. Brian Duperreault succeeded Scott in 1994 as Chairman, President & CEO and worked for the next ten years as ACE went through a series of acquisitions and a diversification process that brought the ACE Group of Companies global status.[13] One of the multiple acquisitions made during this time was the global property and casualty business of Cigna Corporation (most significantly the Insurance Company of North America, known as INA), which was purchased for $3.45 billion in 1999.[14]


In 2004 Evan G. Greenberg became President and CEO of ACE Ltd.[15] In 2004 ACE was also investigated by NY Attorney General Eliot Spitzer for participating in a bid rigging and price fixing scheme with insurance broker Marsh & McLennan.[16][17]

In 2008, ACE purchased the accident and health insurance provider Combined Insurance Company of America (founded by W. Clement Stone in 1919) from Aon Corporation for $2.56 billion[18] and the high-net-worth personal lines business of the Atlantic Companies.[19]

Also in 2008, ACE relocated from the Cayman Islands to Zurich, Switzerland. Evan Greenberg described the move as a "natural progression" that would provide ACE with a "better strategic flexibility…and a solid legal and regulatory environment…"[20] The re-domestication was completed in July that year.[21]

In 2010 the ACE company ESIS Inc. was hired by BP to process claims made by the victims of the Deepwater Horizon oil spill.[22][23]

In 2010, ACE Limited purchased Rain and Hail, LLC for $1.1 billion. Rain and Hail Insurance Service, headquartered in Johnston, Iowa, is an industry leader in crop insurance in the United States.[24][25][26]

In 2010, ACE Limited acquired the Hong Kong and Korea life insurance operations of New York Life.[27]

In 2011, ACE Limited purchased agribusiness insurer Penn Millers. [28]

During 2012, they purchased Indonesian insurer Asuransi Jaya Proteksi. [29]

During 2013, they purchased Mexican Surety Lines Company Fianzas Monterrey and Mexican Personal Lines Insurer ABA Seguros. [30] [31]

In April 2014, ACE Limited acquired a majority stake in Siam Commercial Samaggi Insurance PCL from Siam Commercial Bank. Following a subsequent tender offer in June 2014, ACE and its local partner owned 93.03% of the Samaggi.[32]

In October 2014, ACE Limited acquired the large commercial property and casualty business of Itaú Unibanco Holding SA. The transaction made ACE the largest property and casualty insurer in Brazil. [33]

In April 2015, ACE Limited acquired the Fireman’s Fund high net worth personal lines insurance business in the U.S. from Allianz for $365 million. ACE Private Risk Services is one of the largest high net worth insurers in the U.S.[34]

In July 1, 2015, ACE announced that it will acquire Chubb Corporation for $28.3 billion in cash and ACE stock. Upon completion, ACE shareholders will hold 70% while Chubb shareholders will get 30% of the new combined company. The new company will be based in Zurich, Switzerland where ACE Limited's headquarters are located. Evan Greenberg of ACE will be the new Chairman and CEO of the new company, while Chubb Chairman and CEO John Finnegan will be Executive Vice Chairman for North America External Affairs. The company's board will be expanded to 18 with 4 of them coming from Chubb. The new combined company will adopt the Chubb name. It is expected that the deal will close in Q1 2016, subject to approval by ACE and Chubb shareholders, and regulatory approvals.[35]


2004 Eliot Spitzer investigation[edit]

In 2004 New York Attorney General Eliot Spitzer conducted an investigation in the insurance industry. ACE, American International Group (AIG), Marsh & McLennan, and other large insurers and brokerages were named in Spitzer's investigation for possibly participating in questionable insurance practices including the payment of contingent commissions, bid-rigging, price-fixing, and improper accounting.[36] [37]

Spitzer asserted that contingent commissions contributed to a widespread practice of "bid-rigging" where brokers solicited fake bids with deliberately less favorable terms for the consumer than the bid offered by the insurance company paying the highest commissions.[38][39]

As part of an $80 million settlement that abated further inquiry, ACE signed an Assurance of Discontinuance in which they acknowledged their prior conduct and agreed to alter their business practices. Evan Greenberg himself admitted no fault in Spitzer's allegations although a junior executive did plead guilty to criminal charges.[40][41]

Spitzer's insurance industry probe additionally looked in early 2005 into ACE Ltd's subsidiary ACE Tempest Re's reporting to the SEC of a series of reinsurance transactions, together with the SEC reporting of a further 16 unaffiliated reinsurers. Evan Greenberg said that his company's investigation should be completed within a month. According to Greenberg, contracts appeared "generally structured in a way to provide for appropriate risk transfer and accounted for properly."[42]

The Spitzer investigations also triggered civil litigation by policyholders who claim they were victimized by the bid rigging and commission schemes.[43]

Iran Held Liable for 9/11[edit]

On March 9, 2016, George B. Daniels issued a default judgment against Iran, ordering it to pay $7.5 billion in damages to families of victims who died in the September 11, 2001 attacks, as well as $3 billion to Chubb Limited & other unnamed insurers that paid out claims resulting from the event. The plaintiffs in the case argued that Iran "provided material support" and training to al-Qaeda members, including 9/11 hijackers, through Hezbollah prior to the attacks and was therefore liable.[44][45][46]


  1. ^ a b c d ACE Limited (ACE) Income Statement 2013, Yahoo! Finance, December 31, 2013
  2. ^ ACE Limited Fourth Quarter 2014 Earnings Report. "ACE Reports Fourth Quarter Operating Income of $827 Million and Record Full-Year Earnings of $3.3 Billion, Up 4.7% per Share; Operating ROE of 11.8% for the Quarter and 12% for the Year; Full-Year P&C Combined Ratio of 87.7% versus 88% Last Year" (PDF). Retrieved April 30, 2015. 
  3. ^ "Standard & Poor's Raises ACE's Financial Strength Ratings on Core Operating Subsidiaries to "AA"". Yahoo Finance. 19 May 2014. Archived from the original on 14 December 2014. Retrieved 10 December 2014. 
  4. ^ "What's Behind Our Ratings On The Top 15 Global Multiline Insurers Following The Application Of Our New Criteria". 4 June 2013. 
  5. ^ "A.M. Best Upgrades Ratings for Most Subsidiaries of ACE Limited". Reuters. 11 April 2014. Retrieved 10 December 2014. 
  6. ^ "AM Best Revises Outlook to Positive for ACE Limited and Most of Its Subsidiaries". 14 June 2013. Archived from the original on 18 June 2013. 
  7. ^ "Fitch Upgrades ACE Limited's IFS Ratings to 'AA'; Sr. Debt to 'A+'". Fitch Ratings. 14 May 2013. 
  8. ^ "Moody's rates ACE Limited shelf; ACE INA Holdings' provisional senior debt at (P)A3; outlook stable". 2013-03-05. 
  9. ^ "ACE agrees to Chubb for $28.3 billion". Marketwatch. July 1, 2015. 
  10. ^ "Business Structure". 1 August 2013. 
  11. ^ "ACE Completes Acquisition of Combined Insurance Company of America". Reuters. 1 April 2008. Retrieved 10 December 2014. 
  12. ^ a b "ACE Company Site History Page". Archived from the original on 14 November 2008. Retrieved 8 Aug 2010. 
  13. ^ "Brian Duperreault's Executive Team Page". Archived from the original on 7 July 2011. Retrieved 8 Aug 2010. 
  14. ^ "ACE Completes Acquisition of CIGNA's P&C Businesses; ACE Announces Expense Savings Targets; ACE Outsources Information Technology Operations to IBM". Retrieved 8 Aug 2010. 
  15. ^ Treaster, Joseph B. (12 Mar 2004). "A Greenberg, 3rd in Family, To Be Chief Of an Insurer". New York Times. 
  16. ^ "ACE SETTLES BID-RIGGING PROBE: Agreement is Part of Ongoing Effort to Restore Competition in Insurance Industry". 29 April 2006. Archived from the original on 11 November 2010. 
  17. ^ "Marsh Settles Spitzer Bid-Rigging Accusations for $850 Million". Bloomberg. 21 Jan 2005. 
  18. ^ ACE Completes Acquisition of Combined Insurance Company of America Archived 9 July 2009 at the Wayback Machine.
  19. ^ ACE Agree to Acquire Personal Lines Business of the Atlantic Companies
  20. ^ "ACE Limited Announces Proposed Re-Domestication of Holding Company from Cayman Islands to Switzerland". Bnet. 19 Mar 2008. 
  21. ^ ACE Limited Announces Completion of Re-Domestication of Holding Company from Cayman Islands to Switzerland Archived 26 May 2010 at the Wayback Machine.
  22. ^ "BP hires company to handle oil spill claims whose goal is "reducing payouts" for clients". 10 Jun 2010. [permanent dead link]
  23. ^ ESIS Deepwater Horizon Incident Response Archived 27 December 2010 at the Wayback Machine.
  24. ^ ACE to acquire Rain and Hail Insurance Service, Inc. in $1.1 billion transaction Archived 15 July 2011 at the Wayback Machine.
  25. ^ "ACE Limited acquires Rain and Hail Insurance Service". 2010-09-14. [permanent dead link]
  26. ^ "ACE Wraps Up Rain and Hail Buy". 2010-12-29. [permanent dead link]
  27. ^ "ACE to Acquire New York Life’s Operations in Hong Kong and Korea". Insurance Journal. 27 October 2010. Retrieved 10 December 2014. 
  28. ^ ACE to Acquire Penn Millers
  29. ^ ACE Acquires 80% of Asuransi Jaya Proteksi in Indonesia Archived 16 January 2014 at the Wayback Machine.
  30. ^ ACE Completes Acquisition of Mexican Surety Lines Company Fianzas Monterrey Archived 16 January 2014 at the Wayback Machine.
  31. ^ ACE Acquires Personal Lines Insurer ABA Seguros in Mexico Archived 1 April 2014 at the Wayback Machine.
  32. ^ "ACE Announces the Results of Its Tender Offer for Siam Commercial Samaggi Insurance in Thailand". Yahoo Finance. 24 June 2014. Archived from the original on 14 December 2014. Retrieved 10 December 2014. 
  33. ^ Marcelino, Francisco (4 July 2014). "Ace to Buy Itau’s High-Risk Insurance Unit for $684 Million". Bloomberg News. Retrieved 10 December 2014. 
  34. ^ "Ace closes $365m deal to buy US insurer". The Royal Gazette. April 5, 2015. Retrieved April 30, 2015. 
  35. ^ "ACE to acquire Chubb for $28.3 billion in cash and stock". BusinessWire. July 1, 2015. 
  36. ^ "Spitzer Sues Marsh & McLennan". 10 Oct 2004. 
  37. ^ "N.Y. Attorney General Spitzer Targets Insurance Broker Compensation Agreements". 23 Apr 2004. 
  38. ^ "N.Y. Attorney General Spitzer Sues Marsh Over Contingent Commissions". 25 Oct 2004. 
  39. ^ "Spitzer Says Insurance Broker Fees Fueled 'Improper Practices'". Business Week. 17 Feb 2010. [permanent dead link]
  40. ^ Valdmanis, Thor (4 Nov 2004). "Ace fires two executives, suspends three". USA Today. 
  41. ^ "Chief of Ace Unit Resigns". New York Times. 10 Jun 2006. 
  42. ^ "Finite Reinsurance Probes Appear Infinite". 9 May 2009. Archived from the original on 29 December 2008. 
  43. ^ "NEW CINGULAR WIRELESS HEADQUARTERS LLC et al v. MARSH & MCLENNAN COMPANIES INC". ACE Insurance Litigation Watch. 25 Oct 2006. 
  44. ^ "Iran Told to Pay $10.5 Billion to 9/11 Kin, Insurers". Newsmax Media. 9 March 2016. 
  45. ^ "Iran ordered to make multibillion dollar payout to the families of 9/11 victims". International Business Times. 11 March 2016. 
  46. ^ "Iran ordered to pay $10.5 billion for 9/11 by US judge". RT (TV network). 10 March 2016. 

External links[edit]