-----BEGIN PRIVACY-ENHANCED MESSAGE----Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, JMa+nElDfWA7d9pUDQeeKOhLZVw7+Osf0Y5S5vNW9BOJlXX93KAg1KPeLQJzaQKV GwCkqCwU6dDKiCgVf7Halw== <SEC-DOCUMENT>0000902561-06-000013.txt : 20060131 <SEC-HEADER>0000902561-06-000013.hdr.sgml : 20060131 <ACCEPTANCE-DATETIME>20060131163337 ACCESSION NUMBER: 0000902561-06-000013 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20060131 ITEM INFORMATION: Entry into a Material Definitive Agreement FILED AS OF DATE: 20060131 DATE AS OF CHANGE: 20060131 FILER: COMPANY DATA: COMPANY CONFORMED NAME: CENTRAL INDEX KEY: STANDARD INDUSTRIAL CLASSIFICATION: IRS NUMBER: STATE OF INCORPORATION: FISCAL YEAR END: FILING VALUES: FORM TYPE: SEC ACT: SEC FILE NUMBER: FILM NUMBER: BUSINESS ADDRESS: STREET 1: STREET 2: CITY: STATE: ZIP: BUSINESS PHONE: 8-K 1934 Act 001-11778 06566360 ACE BLDG 30 WOODBOURNE AVE HAMILTON HM 08 BERMU D0 00000 8092955200 ACE LTD 0000896159 FIRE, MARINE & CASUALTY INSURANCE [6331] 000000000 D0 1231
MAIL ADDRESS: STREET 1: P O BOX HM 1015 CITY: HAMITON BERMUDA STATE: D0 ZIP: 00000 </SEC-HEADER> <DOCUMENT> <TYPE>8-K <SEQUENCE>1 <FILENAME>form8k.htm <TEXT> <HTML> <HEAD> <TITLE>Form 8-K</TITLE> </HEAD> <p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'> <font size="2">UNITED STATES<br> </font></p> <p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'> <font size="2">SECURITIES AND EXCHANGE COMMISSION<br> Washington, D.C. 20549</font></p> <p style=' margin-bottom:0pt; margin-top:12pt;text-align:center;'>FORM 8-K</p> <p align="center"><font size="2">Current Report</font></p> <p align="center"><font size="2">Pursuant To Section 13 or 15 (d) of the<br> Securities Exchange Act of 1934</font></p> <p align="center"><font size="2">Date of Report (Date of earliest event reported) - January 26, 2006<br> <br> </font></p> <p align="center">ACE LIMITED<font size="2"><br> (Exact name of registrant as specified in its charter)</font></p> <table border="1" cellpadding="0" cellspacing="0" style="border-collapse: collapse; border-width: 0" bordercolor="#111111" width="100%" id="AutoNumber1" height="85"> <tr> <td width="33%" valign="bottom" align="center" style="border-style: none; border-width: medium" height="24"> </td> <td width="33%" valign="bottom" align="center" style="border-style: none; border-width: medium" height="24"> </td> <td width="34%" valign="bottom" align="center" style="border-style: none; border-width: medium" height="24"> </td> </tr> <tr> <td width="33%" valign="bottom" align="center" style="border-style: none; border-width: medium" height="25"> <div style="width: 206; height: 19; "> <font size="2">Cayman Islands</font></div> </td> <td width="33%" valign="bottom" align="center" style="border-style: none; border-width: medium" height="25"> <div style="width: 227; height: 19; "> <font size="2">1-11778</font></div> </td> <td width="34%" valign="bottom" align="center" style="border-style: none; border-width: medium" height="25"> <div style="width: 219; height: 19; "> <font size="2">98-0091805</font></div> </td> </tr> <tr> <td width="33%" valign="top" align="center" style="border-style: none; border-width: medium" height="30"> <p style="margin-top: 0; margin-bottom: 0"><font size="2">(State or other jurisdiction)</font></td> <td width="33%" valign="top" align="center" style="border-style: none; border-width: medium" height="30"> <p style="margin-top: 0; margin-bottom: 0"><font size="2">(Commission File Number)</font></td> <td width="34%" valign="top" align="center" style="border-style: none; border-width: medium" height="30"> <p style="margin-top: 0; margin-bottom: 0"><font size="2">(I.R.S. Employer of Incorporation<br> Identification No.)</font></p> </td> </tr> </table> <p align="center"><font size="2">ACE Global Headquarters<br> 17 Woodbourne Avenue<br> Hamilton HM 08 Bermuda<br> (Address of principal executive offices)</font></p> <p align="center"><font size="2">Registrant’s telephone number, including area code: <p align="center"><font size="2">Not applicable<br> (Former name or former address, if changed since last report)</font></p> <hr noshade color="#000000" width="10%" align="left"> (441) 295-5200</font></p>
<p align="left"><font size="2">Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instru <table border="0" cellspacing=0 cellpadding=0 width="703" style='border-collapse:collapse'> <tr > <td width="34" valign=top style='padding:8.0pt 0in 0in 0in'> <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0;margin-bottom:0'> <font face="Wingdings" size="2">o</font></p> </td> <td width="669" valign=bottom> <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0;margin-bottom:0'> <font size="2">Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)</font></p> </td> </tr> <tr > <td width="34" valign=top style='padding:8.0pt 0in 0in 0in'> <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0;margin-bottom:0'>
1 of 3
8/12/11 4:35 PM
http://www.sec.gov/Archives/edgar/data/896159/000090256106000013/0000902561-06-0000...
<font face=Wingdings size="2">o</font></p> </td> <td width="669" valign=bottom> <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0;margin-bottom:0'> <font size="2">Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)</font></p> </td> </tr> <tr > <td width="34" valign=top style='padding:8.0pt 0in 0in 0in'> <p style="margin-top: 0; margin-bottom: 0"> <font face=Wingdings size="2">o</font></td> <td width="669" valign=bottom> <p style="margin-top: 0; margin-bottom: 0"><font size="2">Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))</font></td> </tr> <tr > <td width="34" valign=top style='padding:8.0pt 0in 0in 0in'> <p style="margin-top: 0; margin-bottom: 0"> <font face=Wingdings size="2">o</font></td> <td width="669" valign=bottom> <p style="margin-top: 0; margin-bottom: 0"><font size="2">Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))</font></td> </tr></table> <p style="page-break-before:always"> <p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2> </font></p>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><i><b>Item</b></i> <i><b>1.01 </b></i><b>Entry into a Material Definitive Agreement.</b> <br> </p> <p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'>On January 5, 2005, Century Indemnity Company ("Century") and ACE INA International Holdings Limited ("AII") entered into a Stock Purchase Agreement (the "Agreement") with Randall & Quilter Investment Holdings Limited ("R&Q"), which provides for the sale of ACE American Reinsurance Company ("AARe"), Brandywine Reinsurance Company (UK) Ltd. ("BRUK"), and Brandywine Reinsurance Company S.A.N.V. "SANV") to R&Q. An amendment and waiver (the "Amendment") to the Agreement was entered into as of January 26, 2006.<br> <br> The Agreement requires R&Q to make an offer to the Institute of London Underwriters ("ILU") in order to secure the release of ACE Limited ("ACE") under the guaranty given to the ILU with respect to the obligations of BRUK (the "BRUK Guarantee"). The Amendment provides that, if R&Q has not received a definitive response from the ILU in respect of this offer prior to the closing date, R&Q will be required to deposit $750,000 on the closing date into a trust account, which funds will remain on deposit until ACE is released from its obligations and liabilities under the BRUK Guarantee or R&Q assumes ACE's obligations and liabilities under the BRUK Guarantee and indemnifies ACE for amounts paid by ACE under the BRUK Guarantee. If R&Q has received a definitive response from the ILU by the closing date, such release or assignment, assumption and indemnity will occur at closing.<br> <br> The Amendment requires AARe, as ceding company, and an affiliate of ACE or other reinsurer with a financial strength rating of "A" or better from a third-party credit rating agency, as assuming company, to enter into a reinsurance agreement incorporating specified reinsurance slip terms (including a limit of liability equal to $35 million) and R&Q to issue a $5 million promissory note to AARe.<br> <br> The Amendment also added a provision specifying that, if R&Q or any of its affiliates receives any sums in respect of the capital stock or surplus of AARe or BRUK, R&Q and its affiliates shall take reasonable steps to enable Century or AII to promptly receive the amounts to which they are respectively entitled with respect to the preference shares of R&Q to be issued to them at closing.<br> <br> In conjunction with this amendment, AII and Century waived certain conditions of closing and R&Q provided certain additional representations and warranties.<br> <br> On January 26, 2006, certain ACE subsidiaries and R&Q submitted to the Pennsylvania Department of Insurance amended applications pertaining to certain transactions associated with the sale of AARe. The amendments to the applications provide that: (1) an ACE insurance company or other reinsurer with a financial strength rating of "A" or better from a third-party credit rating agency will provide reinsurance covering 70% of AARe's net losses in excess of AARe's net reserves at closing, subject to an aggregate limit of liability equal to $35 million (provided that coverage is triggered under the reinsurance agreement only if, and to the extent that, AARe's surplus drops below $25 million) in exchange for a premium of $10 million; (2) claims commuted at fair value between SANV and Century International Reinsurance Company Ltd. ("CIRC"), and BRUK and CIRC, respectively, as set forth in the original proposal, will be submitted for payment to Century (approximately $55 million) under an existing reinsurance agreement; and (3) ACE withdraws its request for repayment of the $100 million surplus note issued by Century in January 2005.</p> <p style="page-break-before:always"> <p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b>SIGNATURES</b></p> <p>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.</p>
<table border="1" cellpadding="0" cellspacing="0" style="border-collapse: collapse; border-width: 0" bordercolor="#111111" width="89%" id="AutoNumber2" height="151"> <tr> <td width="44%" style="border-style: none; border-width: medium" height="17"></td> <td width="56%" colspan="2" style="border-style: none; border-width: medium" height="17">ACE LIMITED</td> </tr> <tr> <td width="44%" style="border-style: none; border-width: medium" height="17"></td> <td width="56%" colspan="2" style="border-style: none; border-width: medium" height="17"></td> </tr> <tr> <td width="44%" style="border-style: none; border-width: medium" height="17"></td> <td width="56%" colspan="2" style="border-style: none; border-width: medium" height="17"></td> </tr> <tr> <td width="44%" style="border-style: none; border-width: medium" height="16"></td> <td width="4%" style="border-style: none; border-width: medium" height="16">By:</td> <td width="52%" style="border-left-style: none; border-left-width: medium; border-right-style: none; border-right-width: medium; border-top-style: none; border-top-width: medium; border-bottom-style: solid; border /s/ Paul Medini</td> </tr> <tr> <td width="44%" style="border-style: none; border-width: medium" height="17"></td> <td width="4%" style="border-style: none; border-width: medium" height="17"></td> <td width="52%" style="border-style: none; border-width: medium" height="17">Paul B. Medini</td> </tr> <tr> <td width="44%" style="border-style: none; border-width: medium" height="17"></td> <td width="4%" style="border-style: none; border-width: medium" height="17"></td> <td width="52%" style="border-style: none; border-width: medium" height="17">Chief Accounting Officer</td> </tr> <tr> <td width="44%" style="border-style: none; border-width: medium" height="17"></td> <td width="4%" style="border-style: none; border-width: medium" height="17"></td> <td width="52%" style="border-style: none; border-width: medium" height="17"></td> </tr> <tr> <td width="44%" style="border-style: none; border-width: medium" height="17">DATE: January 31, 2006</td> <td width="4%" style="border-style: none; border-width: medium" height="17"></td> <td width="52%" style="border-style: none; border-width: medium" height="17"></td> </tr> </table> <p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2> </font></p> <p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2> </font></p> <p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2> </font></p> <p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2> </font></p>
2 of 3
8/12/11 4:35 PM
http://www.sec.gov/Archives/edgar/data/896159/000090256106000013/0000902561-06-0000...
3 of 3
8/12/11 4:35 PM