NEW YORK (Reuters) - Ace Ltd. chief executive Evan Greenberg yesterday chided insurers asking to take part in a taxpayer-funded financial rescue, saying the motivation is not real need but access to "cheap capital".

"Taxpayers should be a last resort rather than a cheap source of capital ... We'll row our own boat," Greenberg said on a call with investors after the insurer reported quarterly results that topped Wall Street expectations.

He added that most insurers can address their needs in the private market.

Earlier this week, Greenberg sent letters to US Treasury Secretary Henry Paulson on behalf of Ace and in his role as chairman of trade group American Insurance Association outlining his objections to the federal programme being extended to insurers. He said bond insurers may need the help. "That could present systemic counterparty credit risk," he said.

Several providers of bond insurance, including MBIA Inc and Ambac Financial Inc have recently met with regulators to push for federal aid.

Ace owns about one-fifth of Bermuda-based Assured Guaranty Ltd., a bond insurer it spun off several years ago. It was not known if the company has met with Treasury officials.

Some life insurers also approached Treasury last week to explore ways to access the rescue programme, which under a draft proposal is not available to all financial institutions.

Greenberg is one of a growing number of insurance executives saying "thanks, but no thanks" to the prospect of federal aid, as Treasury examines how it can give relief to the industry under the $700 billion rescue programme. Travelers Cos Inc CEO Jay Fishman and Chubb Corp chief operating officer John Degnan sent their own letters on Tuesday to Paulson, saying they will not seek federal funds, and chiding others who do.