capital at Lloyd's during 1998, the company stated in its annual report.

Corporate investors will provide about 60 percent of the 10.2 billion of Lloyd's capacity during the year. ACE's three managing agencies at Lloyd's, collectively known as ACE London, will have an underwriting capacity of about US$1.1 billion. ACE Ltd. is providing $485 million, or 44 percent, of that underwriting capacity in 1998. In the previous year ACE provided about $229 million in underwriting capacity.

The company plans on reducing the number of syndicates managed to nine from the current 13 during 1998. ACE has so far created two non-marine syndicates.

The company has also combined two syndicates to create the largest specialist aviation syndicate group in Lloyd's.

ACE has taken a strategy of diversifying both geographically and by line of business.