Royal & Sun Alliance Insurance Group plc, London, England, ACE Bermuda Insurance Ltd., Hamilton, Bermuda and AON Corporation of Chicago, Illinois announced the formation today of a new insurance and reinsurance entity, Intrepid Re Limited, and its holding company parent, Intrepid Re Holdings Limited. Both Intrepid entities will be based in Hamilton, Bermuda.

Bob Mendelsohn, Group Chief Executive of Royal & Sun Alliance Insurance Group plc, Dominic Frederico, Chief Executive Officer of ACE Bermuda Insurance Ltd., and Michael O'Halleran, President of AON Corporation, issued a joint statement in which they outlined the company's purpose:

"We are pleased to establish a Class 4 insurance company in Bermuda that will provide alternative risk capacity. It is our expectation that Intrepid Re will serve to benefit our current and potential clients, as well as the Bermuda broker community.

"It is also expected that our recent investment in Custom Risk Solutions, LLC will assist insureds, agents and brokers seeking U.S.-based alternative market expertise. By creating and supporting these two independent markets, we will provide separate, yet complementary alternative market services to the broadest possible clientele."

Royal & Sun Alliance operates in over 55 countries worldwide and transacts business in over 130 countries. Worldwide net premium income in 1998 was £ 9.7 billion ($16.1 billion) with assets of £ 64.8 billion ($107.5 billion). The company is listed on the London Stock Exchange (RSA.L) and has a Level 1 American Depository Receipt Program (RSAIY).

The ACE Group of Companies provides insurance and reinsurance for a diverse group of international clients. Operating subsidiaries are based in Bermuda, the United States, the United Kingdom (Lloyd's) and the Republic of Ireland. At March 31, 1999, ACE Limited (NYSE: ACL) had approximately $8.9 billion in assets and $4.0 billion in shareholders' equity. On January 12, 1999, ACE Limited announced it had agreed to acquire the international and domestic property and casualty businesses of CIGNA Corporation for US$3.45 billion in cash. The transaction, which is subject to receipt of necessary regulatory approvals and other customary closing conditions, is expected to be completed by July 1, 1999.

AON Corporation is a holding company that comprises a family of insurance brokerage, consulting and underwriting subsidiaries. AON's common stock (Symbol: AOC) is listed on the New York, Chicago, and London Stock exchanges.

Contact Information

Media Contact:

ACE:
Linda Smith
(441) 299-9312

AON:
John Roskopf
(312) 701-3983

Royal & Sun Alliance Insurance Group plc (London, England):
Roy Randall
44-171-569-6139

Royal & Sun Alliance USA, Inc. (Charlotte, NC):
Libby McLaughlin
(704) 522-3064