Ace Ltd., a Bermuda-based insurer of businesses, raised chief executive officer Evan Greenberg's 2005 pay 13 percent to $11 million, citing his "strong leadership".

Greenberg, 51, was paid $4.6 million in restricted stock, $1 million more than last year, and his salary was unchanged at $1 million, Ace said in a filing last week. His bonus fell by $100,000 to $2.6 million.

Greenberg's pay included stock options valued at $1.8 million, according to Bloomberg calculations.

Ace cited Greenberg's "strong leadership" and "continued growth in the company's book value" as reasons for the restricted stock award. His bonus took into account "the financial impact of losses due to third and fourth quarter natural catastrophes," the filing said.

Bloomberg News valued Greenberg's 108,600 options at $1.8 million on their grant date, using the Black-Scholes pricing formula, a ten-year term, a stock-volatility rate of 30.91 percent, and a comparable US Treasury yield for the risk-free interest rate. Bloomberg News discounted the result by 27.5 percent to adjust for vesting restrictions and the inability to be traded.

Bloomberg News assumed that the options were granted on February 22 of this year. The company indicated that they were awarded in February 2006 and declined to give a precise date.

Ace shares rose 25 percent last year, compared to a 15 percent gain in the KBW Insurance Index. The shares have risen 26 percent this year, while the index has gained 16 percent.