EXHIBIT 12.1

ACE Limited

Computation of Ratio of Earnings to Fixed Charges and Preferred Share Dividends

	Fiscal year ended December 31						Three months ended December 31	Fiscal year ended September 30
	2002		2001		2000	1999	1998	1998
Earnings per Financial Statements	76,549		(146,414	)	542,982	364,963	238,539	560,151
Add (deduct):
Provision for income taxes	(115,688	)	(78,674	)	93,908	28,684	5,342	20,040
Fixed charges	218,494		219,849		242,783	126,138	5,141	27,059
Earnings for Computation	179,355		(5,239	)	879,673	519,785	249,022	607,250
Fixed Charges
Interest Expense	193,494		199,182		221,450	105,138	4,741	25,459
One third of payments under operating leases	25,000		20,667		21,333	21,000	400	1,600
Total Fixed Charges	218,494		219,849		242,783	126,138	5,141	27,059
Ratio of Earnings to Fixed Charges	(1	)	(2	)	3.6	4.1	48.4	22.4
Preferred Share Dividends	25,662		25,594		18,391	—	—	—
Total Fixed Charges and Preferred Share Dividends	244,156		245,443		261,174	126,138	5,141	27,059
Ratio of Earnings to Fixed Charges and Preferred Share Dividends	(1	)	(2	)	3.4	4.1	48.4	22.4

(1) Earnings for the year ended December 31, 2002 were insufficient to cover fixed charges by $39 million and combined fixed charges and preferred share dividends by $65 million.

(2) Earnings for the year ended December 31, 2001 were insufficient to cover fixed charges by $225 million and combined fixed charges and preferred share dividends by $251 million.