8-K

                     SECURITIES AND EXCHANGE COMMISSION
                           Washington D.C. 20549


                                  FORM 8-K


                               Current Report

                   Pursuant to Section 13 or 15(d) of the
                      Securities Exchange Act of 1934


    Date of Report (Date of earliest event reported): December 12, 2000


                                ACE LIMITED
           (Exact name of registrant as specified in its charter)

  Cayman Islands                 1-11778              98-0091805
(State or other jurisdiction   (Commission    (I.R.S. Employer of Incorporation)
                                File Number)         Identification No.)

                 The ACE Building
            30 Woodbourne Avenue
               Hamilton, Bermuda                                HM 08
      (Address of principal executive offices)                 Zip Code)

Registrant's telephone number, including area code: (441) 295-5200

                               Not Applicable
       (Former name or former address, if changed since last report)










Item 5.  Other Information

         On December 12, 2000, ACE Limited initiated legal action against
CIGNA Corporation for breach of contract arising from ACE's $3.45 billion
acquisition of CIGNA's property and casualty business. Included as an
exhibit to this Current Report on Form 8-K is a copy of ACE's press release
issued on December 13, 2000 relating to this action.








                                 SIGNATURES

         Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this report to be signed on its behalf
by the undersigned thereunto duly authorized.


Dated: December 13, 2000                          ACE LIMITED


                                           By:  Christopher Z. Marshall
                                                -----------------------
                                                Christopher Z. Marshall
                                                Chief Financial Officer










                               EXHIBIT INDEX

Exhibit
Number                        Description
- ------                        -----------

99.1              Press Release, dated December 13, 2000

EX-99.1

FOR IMMEDIATE RELEASE

                                      Investor Contact:     Helen M. Wilson
                                                            (441) 299-9283

                                      Media Contact:        Wendy Davis Johnson
                                                            (441) 299-9347


                  ACE Limited Files Lawsuit Against CIGNA

          HAMILTON, Bermuda - December 13, 2000 -- ACE Limited (NYSE: ACL)
announced today that it has initiated legal action against CIGNA Corporation for
breach of contract arising from ACE's $3.45 billion acquisition of CIGNA's
property and casualty business. That acquisition closed on July 2, 1999.

          The complaint charges that CIGNA breached its obligations under
the Acquisition Agreement on two issues. ACE's contentions are that CIGNA
has withheld $48 million that ACE is entitled to under the Tax Sharing
Agreement that was a part of the Acquisition Agreement; and that the
financial statements, which CIGNA provided, failed to fairly represent the
financial condition of the acquired companies. ACE is seeking total
compensatory damages of approximately $218 million. The lawsuit was filed
in the United States District Court (Southern District of New York) where
ACE is seeking a jury trial.

           ACE confirms that the financial statement impact of the items
under dispute have been reflected in its consolidated financial statements
prior to September 30, 2000. The financial statement impact included
adjustments to goodwill and other balance sheet items and was determined
without including any amounts to be recovered from CIGNA as a result of the
lawsuit.  Accordingly, the financial results for the quarter ended
December 31, 2000 will not be impacted by the items included
in the lawsuit.

          The ACE Group of Companies provides insurance and reinsurance for
a diverse group of clients. The ACE Group conducts its business on a global
basis with operating subsidiaries in nearly 50 countries. Additional
information can be found at: www.acelimited.com.

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