Officers & Directors Assurance Holdings Ltd. (CODA), which it has managed since August, 1987.

CODA is the tenth largest underwriter of primary D&O coverage and the ninth largest underwriter of excess D&O.

The company provides limits of up to $25 million of broad indemnity coverage for D&O liability on either a primary or excess basis.

CODA, which was formed in September, 1986, has expanded its policyholder base from its original 53 to 191 at June 30, 1993.

Its profit for the fiscal year ending October 31, 1992, was $29.5 million and premiums earned came to $34.7 million. At June 30, 1993, CODA had $518 million in assets.

ACE is the largest underwriter of excess D&O liability insurance with a usual minimum attachment point of $25 million.

The deal is subject to the approval of CODA's board of directors and shareholders and "certain other conditions'', according to a statement issued by ACE yesterday.

ACE chairman Mr. Walter Scott said: "CODA writes the broadest D&O form available in the marketplace providing corporate officers and directors the best available coverage.

"The combination of CODA's D&O coverage with ACE's excess D&O product will strengthen ACE's competitive position.

"We anticipate that the purchase of CODA will have a positive impact on ACE's financial performance going forward.'' CODA chairman Mr. Donald Snyder said: "This transaction gives liquidity to CODA's shareholders and continuity of coverage under ACE's ownership. The long association between our two companies makes this a natural fit.'' PHOTO Mr.

Walter Scott.