ACE Limited Outside Directors Compensation Parameters August 2011

Annual Retainer Fee of $230,000. Paid $140,000 in restricted stock and $90,000 cash or, at the election of the director, $230,000 in restricted stock. Includes expectation of service on up to two committees (not counting service on Executive Committee). No fees are payable for regular board or committee meetings.

Annual premiums for committee chairs and lead director:

Annual premiums for selected committee service (non-chair): None.

Committee chair and lead director service premiums are payable in cash quarterly or, at the election of the director, in restricted stock annually.

Meeting fees for “special” meetings (required to consider transactions or other special circumstances, as determined jointly by the Lead Director and Chairman): $2,000 per telephone meeting, $3,000 for ‘in person’ meetings. Payable in cash quarterly.

Restricted stock will be awarded at beginning of the plan year (i.e. the date of the Annual General Meeting) and become non-forfeitable at end of the plan year, provided that the grantee has remained an ACE director continuously during that plan year. Increases shall be paid on a pro-rated basis, based on date of award.

Equity ownership maintenance for outside directors:

Minimum equity ownership: $400,000.

Each Outside Director has until the fifth anniversary of his or her initial election to the Board of Directors to achieve this minimum.

Previously granted restricted stock units (whether or not vested) and restricted stock (whether or not vested) shall be counted toward achieving this minimum.

Stock options shall not be counted toward achieving this minimum.

Once a given Outside Director has achieved the $400,000 minimum equity ownership, such requirement shall remain satisfied going forward as long as he or she retains the number of shares valued at $400,000 based on the NYSE closing price for the Company’s Common Shares as of the date such minimum threshold is initially met.

Any vested shares held by an Outside Director in excess of the minimum share equivalent specified above may be sold at such Outside Director’s discretion.

Shares may be sold after consultation with General Counsel.