ACE and MIGA Sign Treaty Reinsurance Agreement
Hamilton, Bermuda, April 24,1997— ACE Limited (NYSE: ACL) announced today the signing of a quota share treaty (whole portfolio) reinsurance agreement with the Multilateral Investment Guarantee Agency (MIGA) of the World Bank Group and A.C.E. Insurance Company, Ltd. (ACE), a wholly-owned subsidiary of ACE Limited. The agreement marks an unprecedented development in the investment insurance market. It will significantly extend the ability of ACE and MIGA to serve continued increases in demand for political risk insurance, which provides coverage for foreign investments in developing countries.
This treaty reinsurance by ACE of MIGA's guarantee operations marks the first time long-term reinsurance is made available by a private insurer on the same terms as contracts offered by MIGA. The agreement allows MIGA to provide private investors and developing countries additional capacity to support developmentally sound investment projects. The coverages offered will be the same as those offered by MIGA's guarantee program, namely, transfer restriction, expropriation, war and civil disturbance, and breach of contract.
Akira lida, MIGA's executive vice president, expressed his enthusiasm at the signing, "This agreement is an important milestone in MIGA's collaboration with the private insurance market in assisting the promotion of increased flows of foreign direct investment to the developing world."
Brian Duperreault, chairman, president and chief executive officer of ACE added, "We are pleased to enter into this agreement with MIGA, with its proven track record of successful underwriting of political risk guarantees, and look forward to the opportunities this new alliance will create."
The ACE group of companies provides insurance and reinsurance for a diverse group of international clients. ACE Limited, through its Bermuda-based subsidiaries, A.C.E. Insurance Company, Ltd., Corporate Officers & Directors Assurance Ltd. and Tempest Reinsurance Company Limited, provides excess liability insurance, directors and officers liability insurance, and property catastrophe reinsurance, as well as satellite, aviation, excess property, and financial lines coverages. ACE also owns three Lloyd's managing agencies, Methuen Underwriting Limited, ACE London Aviation Limited and ACE London Underwriting Limited, and provides corporate capital to Lloyd's syndicates under their management. At March 31, 1996, ACE Limited had approximately $2.3 billion in shareholders' equity and over $4.7 billion in assets.