Thursday, 15 November 2012

ACE Limited

ACE Limited (NYSE: ACE) is the parent company of the ACE Group, a global provider of insurance products covering property and casualty, accident and health, reinsurance, travel, creditor, and life insurance. It also operates in the Lloyd's insurance market in London. It offers services including process management, unusual hazards identification and expected loss calculations, and engineering services.

Based in Bermuda and Switzerland, ACE trades on the NYSE. Its core operating insurance companies are rated "AA-" (Very Strong) for financial strength by Standard & Poor's and "A+" by A. M. Best. Moody's rates the U.S. companies "A2" and the unsecured loan notes "A3". In 2010, the group controlled $83.4 billion in assets and received more than $19.5 billion of gross written premiums.

Clients of the ACE Group consist of multinational corporations and local businesses, insurers seeking reinsurance coverage, and individuals purchasing insurance policies.


ACE Limited was established in 1985, funded by a group of 34 individuals seeking difficult to obtain excess liability and directors and officers insurance coverage. 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.

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. One of the multiple acquisitions made during this time was the global property and casualty business of Cigna Corporation, which was purchased for $3.45 billion in 1999. 

In 2004 Evan G. Greenberg became President and CEO of ACE Ltd.[6] In 2004 ACE was also investigated by NY Attorney General Elliot Spitzer for participating in a bid rigging and price fixing scheme with insurance broker Marsh & McLennan.

In April 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.

Also in 2008, ACE relocated from the Cayman Islands to Z├╝rich, 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…”The re-domestication was completed in July that year.

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

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.

In 2011, ACE Limited purchased agribusiness insurer Penn Millers, Mexican Surety Lines Company Fianzas Monterrey , Asuransi Jaya Proteksi in Indonesia,and Mexican Personal Lines Insurer ABA Seguros.