Ace Ltd. has launched a new Swiss-based subsidiary to manage the insurance and reinsurance business of the Zurich branch.

Ace Insurance (Switzerland) Ltd.'s main goal is to further strengthen Ace's position in the Swiss market, the company said in a statement.

The company begins operation with a share capital of 250 million Swiss francs, and unlimited financial backing from Ace European Group Ltd., Ace said.

Florian Muller, general manager of Ace Insurance (Switzerland), said the founding of the new company demonstrates the strategic importance Ace attaches to Switzerland and its long-term commitment to the market.

Muller said that Swiss-based companies and brokers now will have direct local access to Ace's global expertise and capabilities.

Ace has been active as a local insurer in Switzerland since the Zurich branch of Ace European Ltd. was opened in 2003.

In addition, the company moved its reinsurance activities in continental Europe to Zurich in 2005.

Ace, which has its principal executive offices in Bermuda, shifted its holding company to Switzerland from the Cayman Islands earlier this year.