Background

ACE Power Products is a leading insurance provider of non-traditional risk management solutions for the electric power industry.

ACE Power Products pioneered the concept of replacement power insurance through its PowerBacker^SM product line in the late 1990s and has been improving the product ever since. We insured our first customer in the summer of 1998 protecting them from the financial consequences of the catastrophic risk of spikes in market prices during periods when substantial generation resources were offline.

Since 1998, we have continued to grow, increasing our product offerings and expanding our customer relationships. We have insured 70,000 megawatts of generating capacity at summer peak and have recently expanded our offerings:

• In March 2003, ACE USA announced its entry into the weather risk management business, supplementing product offerings to weather sensitive industries such as energy.
• Long Term Outage Program complements our PowerBacker and other property insurance coverage in place by offering a stipulated value indemnity for longer-term events.
• Coverage is also offered internationally, with PowerBacker currently offered in the United Kingdom and Australia.

To learn more about these customized solutions, go to our "Problems and Solutions" area or "Who We Serve," or call us directly at 1 800 356 2827 or contact your insurance broker.