Bermuda-based ACE Limited announced yesterday that it hascompleted its $2.56 billion cash deal to acquire Combined InsuranceCompany of America and certain subsidiaries from Aon Corp.brokerage.

As per the purchase agreement, the price reflects on adollar-for-dollar basis an increase to Combined's net worth thatoccurred between the signing and the closing of the transaction. Itwas originally announced as $2.4 billion in December of lastyear.

Combined Insurance is an underwriter and distributor ofspecialty individual accident and supplemental health insurance.Chicago-based Aon, on the same day it announced the Combined dealwith ACE, also said it was selling its Sterling Life InsuranceCompany for $352 million to Munich Re.

Evan G. Greenberg, chairman and chief executive officer of ACELimited, commented: "We are delighted to close this importanttransaction ahead of schedule. ACE and Combined teams have beenworking closely together, making plans to achieve both ourefficiency and growth objectives. We have been buildingconsiderable momentum over the last three months so we can hit theground running beginning today."