Exhibit 1.2

Execution Version

ACE INA HOLDINGS INC.

(a Delaware corporation)

Debt Securities

Unconditionally Guaranteed as to Payment of

Principal, Premium, if any, and Interest by

ACE LIMITED

TERMS AGREEMENT

October 27, 2015

436 Walnut Street, WB12B

Philadelphia, PA 19106

ACE LIMITED

Bärengasse 32,

CH-8001 Zurich, Switzerland

Ladies and Gentlemen:

We understand that ACE INA Holdings Inc., a Delaware corporation (the “Company”), proposes to issue and sell $1,300,000,000 aggregate principal amount of its senior debt securities due 2020 (the “Underwritten 2020 Securities”), $1,000,000,000 aggregate principal amount of its senior debt securities due 2022 (the “Underwritten 2022 Securities”), $1,500,000,000 aggregate principal amount of its senior debt securities due 2026 (the “Underwritten 2026 Securities”) and $1,500,000,000 aggregate principal amount of its senior debt securities due 2045 (the “Underwritten 2045 Securities” and, together with the Underwritten 2020 Securities, the Underwritten 2022 Securities and the Underwritten 2026 Securities, the “Underwritten Securities”), which will be unconditionally guaranteed as to payment of principal, premium, if any, and interest by ACE Limited, a Swiss company. Subject to the terms and conditions set forth or incorporated by reference herein, the underwriters named below (the “Underwriters”) offer to purchase, severally and not jointly, the principal amount of Underwritten Securities opposite their names set forth below at the purchase price set forth below.

With respect to the Underwritten 2020 Securities

The Underwritten 2020 Securities shall have the following terms:

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With respect to the Underwritten 2022 Securities

The Underwritten 2022 Securities shall have the following terms:

4

5

With respect to the Underwritten 2026 Securities

The Underwritten 2026 Securities shall have the following terms:

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With respect to the Underwritten 2045 Securities

The Underwritten 2045 Securities shall have the following terms:

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Notices: Notice to the Underwriters shall be directed to the Representatives c/o:

Morgan Stanley & Co. LLC

1585 Broadway

New York, New York 10036

Telephone: (212) 761-6691

Attention: Investment Banking Division

J.P. Morgan Securities LLC

383 Madison Avenue, 7th Floor

New York, New York 10179

Telephone: (212) 834-4533

Attention: Investment Grade Finance

Citigroup Global Markets Inc.

388 Greenwich Street

New York, New York 10013

Facsimile: (646) 291-1469

Attention: General Counsel

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All of the provisions contained in the document attached as Annex I hereto entitled “ACE INA HOLDINGS INC. (a Delaware corporation) – Senior and Subordinated Debt Securities – Unconditionally Guaranteed as to Payment of Principal, Premium, if any, and Interest by ACE LIMITED – UNDERWRITING AGREEMENT” (the “Underwriting Agreement”) are hereby incorporated by reference in their entirety herein and shall be deemed to be a part of this Terms Agreement to the same extent as if such provisions had been set forth in full herein. Terms defined in such document are used herein as therein defined.

Each of the parties hereto hereby expressly and irrevocably submits to the non-exclusive jurisdiction of any competent court in the place of its domicile and any United States Federal or New York State court sitting in the Borough of Manhattan in The City of New York in any action, suit or proceeding arising out of or relating to this Terms Agreement or the transactions contemplated hereby or thereby to the extent that such court has subject matter jurisdiction over the controversy, and expressly and irrevocably waives, to the extent permitted under applicable law, any immunity from the jurisdiction thereof and any claim or defense in such action, suit or proceeding based on a claim of improper venue, forum non conveniens or any similar basis to which it might otherwise be entitled in any such action, suit or proceeding. Each of the Company and the Guarantor irrevocably appoints ACE Group Holdings, Inc., 1133 Avenue of the Americas, 32nd Floor, New York, New York 10036, as its authorized agent in the Borough of Manhattan in The City of New York upon which process may be served in any such action, suit or proceeding, and agrees that service of process upon such agent, and written notice of said service to the Company or the Guarantor by the person serving the same to the address provided in Section 11 of the Underwriting Agreement, shall be deemed in every respect effective service of process upon the Company or the Guarantor, as the case may be, in any such action, suit or proceeding. Each of the Company and the Guarantor further agrees to take any and all action as may be necessary to maintain such designation and appointment of such agent in full force and effect for a period of seven years from the date of this Terms Agreement.

This Terms Agreement shall be governed by and construed in accordance with the laws of the State of New York.

Please accept this offer no later than 4:35 P.M. (New York City time) on November 3, 2015 by signing a copy of this Terms Agreement in the space set forth below and returning the signed copy to us.

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Signature Page to Terms Agreement

Signature Page to Terms Agreement

Schedule I

ISSUER FREE WRITING PROSPECTUSES

Final Term Sheet dated October 27, 2015 (attached hereto as Schedule II)

Schedule II

ACE INA HOLDINGS INC.

FINAL TERM SHEET

$5,300,000,000

ACE INA Holdings Inc.

$1,300,000,000 2.300% Senior Notes due 2020

$1,000,000,000 2.875% Senior Notes due 2022

$1,500,000,000 3.350% Senior Notes due 2026

$1,500,000,000 4.350% Senior Notes due 2045

Each Fully and Unconditionally Guaranteed by

ACE Limited

Pricing Term Sheet

October 27, 2015

The issuer and the guarantor have filed a registration statement (including a prospectus) with the SEC for the offerings to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents the issuer or the guarantor has filed with the SEC for more complete information about the issuer, the guarantor and these offerings. You may get these documents for free by visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the issuer, any underwriter or any dealer participating in these offerings will arrange to send you the prospectus if you request it by calling Morgan Stanley & Co. LLC at 1-866-718-1649, J.P. Morgan Securities LLC at 1-212-834-4533 or Citigroup Global Markets Inc. at 1-800-831-9146.

Annex I

UNDERWRITING AGREEMENT

[Filed as Exhibit 1.1 to Form 8-K and not included herein]