ACE Ltd. aims to increase its share of capacity on its managed syndicates to more than 50 percent in the short term and not by 50 percent as was reported in Monday's Business section.

Bermuda-based insurer, ACE Ltd., has substantially increased the capacity it is providing in the Lloyd's market for the 1998 year.

A direct accounting was given by ACE chairman, president and CEO, Brian Duperreault, during a speech at the 11th Lloyd's Underwriting Agents Conference in London on Thursday.

He said, "ACE entered Lloyd's with the acquisition last year of the Methuen Group and Ockham Worldwide Holdings.

"With the latter writing business as ACE London Underwriting and ACE London Aviation and the former retaining the Methuen name, the managing agencies oversaw the activities of 13 syndicates whose total capacity during 1997 was 745 million. ACE provided 142 million of this capacity.

"Next year, ACE London at Lloyd's will provide 300 million out of an expected total capacity of 700 million. The majority of this increase has been achieved through successful purchasing of capacity through the auction process.'' ACE has now created two flagship non-marine syndicates, and their ability to write an appropriate size of line, develop specialisations, recruit high calibre specialists and invest in business development, nicely positions them as leaders in the market.

ACE has assembled one of the largest aviation syndicate groupings in the world -- the largest at Lloyd's.

The Bermuda insurer has this year represented the largest single underwriting group in the Lloyd's market. But ACE is now aiming to increase its share of total Lloyd's capacity by 50 percent in the short-term, giving ACE considerable trading strength in the Lloyd's market.

Mr. Duperreault said, "We are committed to improving service levels to brokers and clients and to maintaining our stringent underwriting disciplines.'' He reflected on the many benefits to being at Lloyd's, stating: "Lloyd's name recognition is so vast that it literally has entered the vernacular of the English-speaking world, transcending the insurance and reinsurance sectors. In spite of the tarnish to the Lloyd's name in the recent past, the branding of ACE London at Lloyd's carried the immediate stamp of gravitas.

"Additionally, the relationships built over the course of 300 years have established a brand loyalty that was Lloyd's `reservoir of good will' throughout the worst period prior to R&R (the reconstruction and renewal plan).

"This loyalty to the Lloyd's brand most certainly aided in the retention of a healthy percentage of policyholders and the financial solvency of a significant number of syndicates.'' Mr. Duperreault also listed some of the considerable tangible benefits to ACE's association with Lloyd's, such as the immediate access to markets that were previously unavailable to ACE.

And Lloyd's had long ago established a leadership position in the marine and aviation underwriting business.

Geographic and product diversification are inherent elements of the strategy that is mapping the growth of ACE. The investment in Lloyd's directly opened markets previously unattainable from Bermuda, broadening the company's product base.

He said, "Chief among the new markets we are now able to access through our Lloyd's operations are Japan and Singapore, where they are participating in Lloyd's initiatives in those territories.

"ACE is at the forefront of developing relationships with Japan, demonstrated by the presence of William Loschert, chairman of our London operations, on the key Lloyd's Japan Board.'' Mr. Duperreault tempered his remarks by noting the obvious concerns with which they entered the Lloyd's market. There were concerns about regulatory control, underwriting discipline, costs, marketing and competitiveness.

Some of those concerns have been alleviated by Lloyd's R&R, Equitas and respectable ratings the market has won from insurance rating agencies.

And the chief executive expressed optimism for the future success of both Lloyd's and ACE.