New Policy to Better Protect Directors, Officers

Ace Insurance Launches New Policy to Better Protect Directors and Officers in Today’s Climate

Auckland – 5 June 2007 – ACE Insurance Limited, a part of the ACE Group of Companies, a global leader in insurance and reinsurance, today announced the launch of a new and broader Directors & Officers (D&O) policy to help better protect directors and officers in today’s market.

Shareholders are increasingly demanding that directors be held more accountable for their actions as evidenced by a number of recent New Zealand regulatory investigations and prosecutions. These include the alleged insider trading by Tranz Rail Directors, and the insolvency of Feltex with the resulting shareholder outcry calling for court proceedings to be issued against the Feltex directors.

Unfortunately, more than ever, potential claims and litigation are an everyday risk for directors. ACE’s strong, flexible and innovative policy has been designed to help protect clients operating both local and international businesses. The policy offers directors and officers numerous benefits. Some of its key features include:

- No exclusion for claims by one insured against another insured, except for limited types of claims made in, or under the laws of, the United States of America or its territories (which are then subject to significant 'write backs' of cover). This helps remove potential contentious issues between directors and their insurer and may avoid legal disputes over entitlements to cover.

- There is no 'hammer clause' by which ACE can force a director or officer to settle a claim when they might have grounds for defending it (other than those claims by the insured organisation or outside organisations). This type of clause is commonly found in other D&O Policies in the market for all types of claims.

Chris Newing, Financial Lines Underwriting Manager at ACE New Zealand said, “There is a real market need for a comprehensive D&O policy which helps adequately protect directors &officers in today’s rapidly changing legal environment. We launched our new D&O product following extensive research into the New Zealand market place and the areas in which directors and officers are currently exposed. As a result, we are confident that, as the legal environment evolves, our product will continue to help meet directors’ and officers’ needs”.

ABOUT ACE
ACE Insurance Limited Company Number 104656 (ACE New Zealand) is a member of the ACE Group of Companies, a global leader in insurance and reinsurance. Headed by ACE Limited (NYSE: ACE), a component of the Standard & Poor’s 500 stock index, the ACE Group conducts its business on a worldwide basis with operating subsidiaries in more than 50 countries and a strong presence in Asia Pacific.

ACE New Zealand offers broker-based corporate and commercial casualty, group personal accident and corporate travel products, and corporate property business, tailored to clients' needs. In each area of specialty, ACE leverages global expertise with local acumen to create specific solutions to help mitigate client risks. With a focus on building strong relationships by offering responsive service, ACE New Zealand’s clients range from large multinational companies to local corporates.

Additional information can be found at www.aceinsurance.co.nz

ENDS

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