New Podcast from ACE USA Provides Insight into the Trends Driving Increasing Costs...

New Podcast from ACE USA Provides Insight into the Trends Driving Increasing Costs and Frequency of D&O Litigation

PHILADELPHIA--(Business Wire)--
ACE USA, the U.S.-based retail operating division of the ACE Group
of Companies, today launched a new audio podcast (or
Internet-distributed program), discussing the broader issues connected
with securities, derivative and regulatory litigation against today's
executives. In the podcast, Carol Zacharias, Senior Vice President and
Chief Counsel, ACE Professional Risk, discusses her white paper, "The
Return of D&O Litigation: Trends Driving Increasing Costs and
Frequency of Litigation Against Corporate Directors and Officers," and
provides an informative overview of the trends and factors behind the
escalation of case filings against directors and officers and the
rising severity of settlements and judgments.

"Declining securities class action filings in recent years have
raised the question of whether the strictures of the Sarbanes-Oxley
Act of 2002 have worked, heralding a new era of greater transparency,
less fraud, and hence fewer cases--particularly those against
directors and officers," said Ms. Zacharias. "On the contrary, we're
seeing a marked increase in securities class action litigation and a
significant increase in case values. For instance, 2007 securities
class action settlements exceeded those in previous years by 15
percent to 46 percent, depending upon the measurement." She explains
that median settlements increased by 30 percent, from $6.9 million to
$9 million and average settlements increased by 15 percent, from $54.7
million in the years prior to 2007 to $62.7 million in 2007.

Ms. Zacharias commented further on her findings, "There are some
common characteristics and elements in these cases, but certainly the
most important driver is increasing investor losses, and a significant
driver of those losses today are the credit and subprime problems."
She explained that median investor losses for cases settled in 2007
were $310 million, whereas median investor losses for cases filed in
2007 were $355 million, a 15 percent increase and the highest in the
past three years. "It appears that recently filed cases seek greater
damages than those filed in prior years, which may translate into even
more expensive settlements and judgments in the future."

Ms. Zacharias commented on the typical plaintiff in a securities
case. "Years ago, the shareholder was the typical plaintiff in a
securities case. Today, the adversaries are much more varied and
resourceful, making the cases more complex to litigate and settle."

To access the ACE Professional Risk audio podcast program
(approximately 26 minutes in length), please visit
www.aceusa.com/News/Pages/Podcasts.aspx. To access the white paper,
please visit www.aceusa.com/News/Pages/ArticlesSpeeches.aspx. The
material presented in the podcast is not intended to provide legal or
other expert advice. It is presented for general information only.
Listeners of this podcast should consult legal counsel or other
experts, as applicable, with any questions.

Staffed by a team of innovative underwriters, ACE Professional
Risk is the operating unit within ACE USA, which distributes
management liability, professional liability and surety products
through retail brokers throughout the U.S. and Canada. For more
information about ACE Professional Risk and its range of products and
services, please visit www.aceprofessionalrisk.com.

ACE USA is the U.S.-based retail operating division of the ACE
Group of Companies, headed by ACE Limited (NYSE:ACE), and is rated A+
(Superior) by A.M. Best Company and A+ (Strong) by Standard & Poor's.
ACE USA, through its underwriting companies, provides insurance
products and services throughout the U.S. Additional information on
ACE USA and its products and services can be found at www.aceusa.com.
The ACE Group of Companies provides insurance and reinsurance for a
diverse group of clients around the world.

ACE North America Communications
Media Contact:
Carla Ferrara, 215-640-4744
carla.ferrara@ace-ina.com

Copyright Business Wire 2008