of property catastrophe reinsurer Tempest Reinsurance Company Ltd., ACE said yesterday.

The closing announcement came after ACE shareholders approved the issuing about 13.3 million ACE shares to Tempest Re shareholders.

At a special meeting yesterday morning, ACE shareholders approved the issuing of the shares. All shareholders voted by proxy statement.

Last Thursday, Tempest Re's shareholders overwhelmingly approved the amended ACE bid which, for all intents and purposes, sealed the deal. That approval came days after Tempest Re's board had announced it would recommend the sweetened ACE bid. ACE upped its original offer after IPC Holdings, Ltd. made a bid for Tempest Re.

Immediately prior to yesterday's closing, Tempest Re repurchased General Re Corporation's interest in Tempest Re and declared a dividend to Tempest Re's remaining shareholders decreasing the property catastrophe insurer's net asset value to $452.5 million.

For the 13.3 million shares issued, ACE will acquire a company with a net asset value of between $402.5 million and $452.5 million.

The range exists because Tempest Re's shareholders may still receive a dividend of up to $50 million depending on the weighted average trading price of ACE's ordinary shares to be determined today.

"Tempest adds an important dimension to ACE's strategic development,'' said ACE chairman, president and CEO Brian Duperreault.

"We are excited about the benefits Tempest offers to ACE, and we look forward to having the talented staff of this exceptional company join our team,'' he said.

ACE vice chairman Don Kramer said: "Tempest has joined an excellent company with enormous potential. We are extremely please to be a part of this dynamic organisation.'' In connection with the acquisition, Mr. Kramer, Tempest Re's former co-chairman, became ACE vice chairman.

Mr. Duperreault also said that the acquisition is a "win-win'' deal not only for the two companies but also for buyers of insurance.

And under ACE, Tempest Re is freer to expand and diversify.