Allied World Assurance 8-K Results of Operations and Financial Condition

Exhibit 99.1

ALLIED WORLD ASSURANCE COMPANY HOLDINGS, AG

New Segment Financial Supplement

Investor Contact:        This report is for informational purposes only. It should be read in conjunction with documents filed by

Sarah Doran            Allied World Assurance Company Holdings, AG with the U.S. Securities and Exchange Commission.

Phone: (646)794-0590

Email: sarah.doran@awac.com

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS

Any forward-looking statements made in this report reflect our current views with respect to future events and financial performance and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements involve risks and uncertainties, which may cause actual results to differ materially from those set forth in these statements. For example, our forward-looking statements could be affected by the occurrence of any event, change or other circumstance that could give rise to the termination of the definitive agreements with Royal & Sun Alliance Insurance plc; the inability to receive the required regulatory approvals to complete the acquisitions; risks that the proposed acquisitions disrupt each company’s current plans and operations; the ability to retain key personnel; the ability to recognize the benefits of the acquisitions; the amount of costs, fees, expenses and charges related to the acquisitions; pricing and policy term trends; increased competition; the adequacy of our loss reserves; negative rating agency actions; greater frequency or severity of unpredictable catastrophic events; the impact of acts of terrorism and acts of war; the company or its subsidiaries becoming subject to significant income taxes in the United States or elsewhere; changes in regulations or tax laws; changes in the availability, cost or quality of reinsurance or retrocessional coverage; adverse general economic conditions; and judicial, legislative, political and other governmental developments, as well as management’s response to these factors, and other factors identified in our filings with the U.S. Securities and Exchange Commission. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date on which they are made. We are under no obligation (and expressly disclaim any such obligation) to update or revise any forward-looking statement that may be made from time to time, whether as a result of new information, future developments or otherwise.

ALLIED WORLD ASSURANCE COMPANY HOLDINGS, AG
FINANCIAL SUPPLEMENT TABLE OF CONTENTS
		Page
	Basis of Presentation	4
	- Consolidated Segment Results - year ended December 31, 2013	5
	- Consolidated Segment Results - year ended December 31, 2012	6
	- Consolidated Segment Results - nine months ended September 30, 2014	7
	- Consolidated Segment Results - nine months ended September 30, 2013	8
	- Consolidated Segment Results - three months ended September 30, 2014	9
	- Consolidated Segment Results - three months ended June 30, 2014	10
	- Consolidated Segment Results - three months ended March 31, 2014	11
	- Consolidated Segment Results - three months ended December 31, 2013	12
	- Consolidated Segment Results - three months ended September 30, 2013	13
	- Consolidated Segment Results - three months ended June 30, 2013	14
	- Consolidated Segment Results - three months ended March 31, 2013	15

ALLIED WORLD ASSURANCE COMPANY HOLDINGS, AG

BASIS OF PRESENTATION

DEFINITIONS AND PRESENTATION

• The following schedules show the Company's unaudited results of operations for each of its operating segments for the year ended December 31, 2013, year ended December 31, 2012, nine months ended September 30, 2014, nine months ended September 30, 2013, quarter ended September 30, 2014, quarter ended June 30, 2014, quarter ended March 31, 2014, quarter ended December 31, 2013, quarter ended September 30, 2013, quarter ended June 30, 2013, and quarter ended March 31, 2013.

• During the fourth quarter of 2014, the Chief Executive Officer of Allied World Assurance Company Holdings, AG (the "Company") reorganized how the Company manages its business, and as a result it realigned its executive management team and changed its reportable segments to correspond to the reorganization. The Company's Bermuda direct insurance operations, which had previously been included in the international insurance segment, were combined with the U.S. insurance segment, with the new segment renamed the "North American Insurance Segment". The remaining direct insurance operations of the international insurance segment were renamed the "Global Markets Insurance Segment". The Reinsurance Segment remained unchanged. The results of operations reported under the "Reinsurance" and "Consolidated Totals" columns in the following schedules have not changed as a result of the new segment format.

• All financial information contained herein is unaudited.

• Unless otherwise noted, all data is in thousands of U.S. dollars.

4

ALLIED WORLD ASSURANCE COMPANY HOLDINGS, AG

UNAUDITED CONSOLIDATED SEGMENT RESULTS

FOR THE YEAR ENDED DECEMBER 31, 2013

			Year ended December 31, 2013
			North American			Global Markets						Consolidated
			Insurance			Insurance			Reinsurance			Totals
Revenues
	Gross premiums written		$	1,572,355		$	232,555		$	933,754		$	2,738,664
	Net premiums written		$	1,082,441		$	145,002		$	893,038		$	2,120,481
	Net premiums earned		$	1,022,979		$	126,008		$	856,846		$	2,005,833
		Total revenues	$	1,022,979		$	126,008		$	856,846		$	2,005,833
Expenses
	Net losses and loss expenses		$	651,267		$	50,395		$	421,580		$	1,123,242
	Acquisition costs			94,869			10,051			147,753			252,673
	General and administrative expenses			209,042			63,164			80,079			352,285
		Total expenses	$	955,178		$	123,610		$	649,412		$	1,728,200
Underwriting income			$	67,801		$	2,398		$	207,434		$	277,633
	Other insurance-related income			—			—			—			—
	Other insurance-related expenses			—			—			—			—
Segment income			$	67,801		$	2,398		$	207,434		$	277,633
	Net investment income												157,564
	Net realized investment gains												59,525
	Amortization of intangible assets												(2,533)
	Interest expense												(56,510)
	Foreign exchange loss												(8,019)
Income before income taxes												$	427,660
GAAP Ratios
Loss and loss expense ratio				63.7	%		40.0	%		49.2	%		56.0	%
Acquisition cost ratio				9.3	%		8.0	%		17.2	%		12.6	%
General and administrative expense ratio				20.4	%		50.1	%		9.3	%		17.6	%
Expense ratio				29.7	%		58.1	%		26.5	%		30.2	%
Combined ratio				93.4	%		98.1	%		75.7	%		86.2	%

5

ALLIED WORLD ASSURANCE COMPANY HOLDINGS, AG

UNAUDITED CONSOLIDATED SEGMENT RESULTS

FOR THE YEAR ENDED DECEMBER 31, 2012

			Year ended December 31, 2012
			North American			Global Markets						Consolidated
			Insurance			Insurance			Reinsurance			Totals
Revenues
	Gross premiums written		$	1,376,040		$	192,981		$	760,250		$	2,329,271
	Net premiums written		$	964,199		$	125,577		$	748,047		$	1,837,823
	Net premiums earned		$	892,721		$	115,660		$	740,517		$	1,748,898
		Total revenues	$	892,721		$	115,660		$	740,517		$	1,748,898
Expenses
	Net losses and loss expenses		$	608,762		$	19,536		$	510,966		$	1,139,264
	Acquisition costs			77,701			8,483			119,538			205,722
	General and administrative expenses			185,231			48,365			73,725			307,321
		Total expenses	$	871,694		$	76,384		$	704,229		$	1,652,307
Underwriting income			$	21,027		$	39,276		$	36,288		$	96,591
	Other insurance-related income			—			—			—			—
	Other insurance-related expenses			—			—			—			—
Segment income			$	21,027		$	39,276		$	36,288		$	96,591
	Net investment income												167,141
	Net realized investment gains												306,436
	Amortization of intangible assets												(2,533)
	Interest expense												(55,405)
	Foreign exchange loss												(783)
Income before income taxes												$	511,447
GAAP Ratios
Loss and loss expense ratio				68.2	%		16.9	%		69.0	%		65.1	%
Acquisition cost ratio				8.7	%		7.3	%		16.1	%		11.8	%
General and administrative expense ratio				20.7	%		41.8	%		10.0	%		17.6	%
Expense ratio				29.4	%		49.1	%		26.1	%		29.4	%
Combined ratio				97.6	%		66.0	%		95.1	%		94.5	%

6

ALLIED WORLD ASSURANCE COMPANY HOLDINGS, AG

UNAUDITED CONSOLIDATED SEGMENT RESULTS

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2014

			Nine months ended September 30, 2014
			North American			Global Markets						Consolidated
			Insurance			Insurance			Reinsurance			Totals
Revenues
	Gross premiums written		$	1,285,044		$	196,086		$	888,552		$	2,369,682
	Net premiums written		$	905,279		$	126,574		$	862,427		$	1,894,280
	Net premiums earned		$	808,453		$	114,584		$	686,232		$	1,609,269
		Total revenues	$	808,453		$	114,584		$	686,232		$	1,609,269
Expenses
	Net losses and loss expenses		$	520,586		$	35,204		$	370,441		$	926,231
	Acquisition costs			76,531			12,615			125,258			214,404
	General and administrative expenses			159,063			48,861			56,898			264,822
		Total expenses	$	756,180		$	96,680		$	552,597		$	1,405,457
Underwriting income			$	52,273		$	17,904		$	133,635		$	203,812
	Other insurance-related income			1,032			—			—			1,032
	Other insurance-related expenses			1,270			5,305			—			6,575
Segment income			$	52,035		$	12,599		$	133,635		$	198,269
	Net investment income												127,824
	Net realized investment gains												104,286
	Amortization of intangible assets												(1,900)
	Interest expense												(43,451)
	Foreign exchange loss												(978)
Income before income taxes												$	384,050
GAAP Ratios
Loss and loss expense ratio				64.4	%		30.7	%		54.0	%		57.6	%
Acquisition cost ratio				9.5	%		11.0	%		18.3	%		13.3	%
General and administrative expense ratio				19.7	%		42.6	%		8.3	%		16.5	%
Expense ratio				29.2	%		53.6	%		26.6	%		29.8	%
Combined ratio				93.6	%		84.3	%		80.6	%		87.4	%

7

ALLIED WORLD ASSURANCE COMPANY HOLDINGS, AG

UNAUDITED CONSOLIDATED SEGMENT RESULTS

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2013

			Nine months ended September 30, 2013
			North American			Global Markets						Consolidated
			Insurance			Insurance			Reinsurance			Totals
Revenues
	Gross premiums written		$	1,169,782		$	156,232		$	857,160		$	2,183,174
	Net premiums written		$	811,473		$	100,762		$	817,116		$	1,729,351
	Net premiums earned		$	760,581		$	91,705		$	628,986		$	1,481,272
		Total revenues	$	760,581		$	91,705		$	628,986		$	1,481,272
Expenses
	Net losses and loss expenses		$	453,680		$	36,227		$	317,369		$	807,276
	Acquisition costs			70,329			7,006			109,081			186,416
	General and administrative expenses			151,601			43,287			56,930			251,818
		Total expenses	$	675,610		$	86,520		$	483,380		$	1,245,510
Underwriting income			$	84,971		$	5,185		$	145,606		$	235,762
	Other insurance-related income			—			—			—			—
	Other insurance-related expenses			—			—			—			—
Segment income			$	84,971		$	5,185		$	145,606		$	235,762
	Net investment income												110,294
	Net realized investment losses												(8,074)
	Amortization of intangible assets												(1,900)
	Interest expense												(42,416)
	Foreign exchange loss												(7,361)
Income before income taxes												$	286,305
GAAP Ratios
Loss and loss expense ratio				59.6	%		39.5	%		50.5	%		54.5	%
Acquisition cost ratio				9.2	%		7.6	%		17.3	%		12.6	%
General and administrative expense ratio				19.9	%		47.2	%		9.1	%		17.0	%
Expense ratio				29.1	%		54.8	%		26.4	%		29.6	%
Combined ratio				88.7	%		94.3	%		76.9	%		84.1	%

8

ALLIED WORLD ASSURANCE COMPANY HOLDINGS, AG

UNAUDITED CONSOLIDATED SEGMENT RESULTS

FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2014

			Three months ended September 30, 2014
			North American			Global Markets						Consolidated
			Insurance			Insurance			Reinsurance			Totals
Revenues
	Gross premiums written		$	466,792		$	64,125		$	176,967		$	707,884
	Net premiums written		$	364,739		$	44,794		$	159,209		$	568,742
	Net premiums earned		$	277,203		$	41,574		$	222,960		$	541,737
		Total revenues	$	277,203		$	41,574		$	222,960		$	541,737
Expenses
	Net losses and loss expenses		$	180,682		$	28,142		$	127,266		$	336,090
	Acquisition costs			27,027			5,313			40,063			72,403
	General and administrative expenses			52,921			16,802			18,571			88,294
		Total expenses	$	260,630		$	50,257		$	185,900		$	496,787
Underwriting income (loss)			$	16,573		$	(8,683)		$	37,060		$	44,950
	Other insurance-related income			1,032			—			—			1,032
	Other insurance-related expenses			1,270			5,305			—			6,575
Segment income (loss)			$	16,335		$	(13,988)		$	37,060		$	39,407
	Net investment income												43,412
	Net realized investment losses												(35,136)
	Amortization of intangible assets												(633)
	Interest expense												(14,325)
	Foreign exchange loss												(278)
Income before income taxes												$	32,447
GAAP Ratios
Loss and loss expense ratio				65.2	%		67.7	%		57.1	%		62.0	%
Acquisition cost ratio				9.7	%		12.8	%		18.0	%		13.4	%
General and administrative expense ratio				19.1	%		40.4	%		8.3	%		16.3	%
Expense ratio				28.8	%		53.2	%		26.3	%		29.7	%
Combined ratio				94.0	%		120.9	%		83.4	%		91.7	%

9

ALLIED WORLD ASSURANCE COMPANY HOLDINGS, AG

UNAUDITED CONSOLIDATED SEGMENT RESULTS

FOR THE THREE MONTHS ENDED JUNE 30, 2014

			Three months ended June 30, 2014
			North American			Global Markets						Consolidated
			Insurance			Insurance			Reinsurance			Totals
Revenues
	Gross premiums written		$	472,340		$	73,564		$	214,501		$	760,405
	Net premiums written		$	293,388		$	50,733		$	209,803		$	553,924
	Net premiums earned		$	265,800		$	37,998		$	233,449		$	537,247
		Total revenues	$	265,800		$	37,998		$	233,449		$	537,247
Expenses
	Net losses and loss expenses		$	178,732		$	2,673		$	133,450		$	314,855
	Acquisition costs			25,829			4,423			44,027			74,279
	General and administrative expenses			58,527			17,477			20,184			96,188
		Total expenses	$	263,088		$	24,573		$	197,661		$	485,322
Underwriting income			$	2,712		$	13,425		$	35,788		$	51,925
	Other insurance-related income			—			—			—			—
	Other insurance-related expenses			—			—			—			—
Segment income			$	2,712		$	13,425		$	35,788		$	51,925
	Net investment income												36,793
	Net realized investment gains												85,217
	Amortization of intangible assets												(634)
	Interest expense												(14,592)
	Foreign exchange loss												(651)
Income before income taxes												$	158,058
GAAP Ratios
Loss and loss expense ratio				67.2	%		7.0	%		57.2	%		58.6	%
Acquisition cost ratio				9.7	%		11.6	%		18.9	%		13.8	%
General and administrative expense ratio				22.0	%		46.0	%		8.6	%		17.9	%
Expense ratio				31.7	%		57.6	%		27.5	%		31.7	%
Combined ratio				98.9	%		64.6	%		84.7	%		90.3	%

10

ALLIED WORLD ASSURANCE COMPANY HOLDINGS, AG

UNAUDITED CONSOLIDATED SEGMENT RESULTS

FOR THE THREE MONTHS ENDED MARCH 31, 2014

			Three months ended March 31, 2014
			North American			Global Markets						Consolidated
			Insurance			Insurance			Reinsurance			Totals
Revenues
	Gross premiums written		$	345,912		$	58,397		$	497,084		$	901,393
	Net premiums written		$	247,152		$	31,047		$	493,415		$	771,614
	Net premiums earned		$	265,451		$	35,011		$	229,823		$	530,285
		Total revenues	$	265,451		$	35,011		$	229,823		$	530,285
Expenses
	Net losses and loss expenses		$	161,172		$	4,389		$	109,725		$	275,286
	Acquisition costs			23,675			2,879			41,168			67,722
	General and administrative expenses			47,615			14,582			18,143			80,340
		Total expenses	$	232,462		$	21,850		$	169,036		$	423,348
Underwriting income			$	32,989		$	13,161		$	60,787		$	106,937
	Other insurance-related income			—			—			—			—
	Other insurance-related expenses			—			—			—			—
Segment income			$	32,989		$	13,161		$	60,787		$	106,937
	Net investment income												47,619
	Net realized investment gains												54,205
	Amortization of intangible assets												(633)
	Interest expense												(14,534)
	Foreign exchange loss												(49)
Income before income taxes												$	193,545
GAAP Ratios
Loss and loss expense ratio				60.7	%		12.5	%		47.7	%		51.9	%
Acquisition cost ratio				8.9	%		8.2	%		17.9	%		12.8	%
General and administrative expense ratio				17.9	%		41.6	%		7.9	%		15.2	%
Expense ratio				26.8	%		49.8	%		25.8	%		28.0	%
Combined ratio				87.5	%		62.3	%		73.5	%		79.9	%

11

ALLIED WORLD ASSURANCE COMPANY HOLDINGS, AG

UNAUDITED CONSOLIDATED SEGMENT RESULTS

FOR THE THREE MONTHS ENDED DECEMBER 31, 2013

			Three months ended December 31, 2013
			North American			Global Markets						Consolidated
			Insurance			Insurance			Reinsurance			Totals
Revenues
	Gross premiums written		$	402,574		$	76,322		$	76,594		$	555,490
	Net premiums written		$	270,969		$	44,239		$	75,922		$	391,130
	Net premiums earned		$	262,398		$	34,303		$	227,860		$	524,561
		Total revenues	$	262,398		$	34,303		$	227,860		$	524,561
Expenses
	Net losses and loss expenses		$	197,587		$	14,168		$	104,211		$	315,966
	Acquisition costs			24,540			3,045			38,672			66,257
	General and administrative expenses			57,441			19,877			23,149			100,467
		Total expenses	$	279,568		$	37,090		$	166,032		$	482,690
Underwriting (loss) income			$	(17,170)		$	(2,787)		$	61,828		$	41,871
	Other insurance-related income			—			—			—			—
	Other insurance-related expenses			—			—			—			—
Segment (loss) income			$	(17,170)		$	(2,787)		$	61,828		$	41,871
	Net investment income												47,270
	Net realized investment gains												67,599
	Amortization of intangible assets												(633)
	Interest expense												(14,094)
	Foreign exchange loss												(658)
Income before income taxes												$	141,355
GAAP Ratios
Loss and loss expense ratio				75.3	%		41.3	%		45.7	%		60.2	%
Acquisition cost ratio				9.4	%		8.9	%		17.0	%		12.6	%
General and administrative expense ratio				21.9	%		57.9	%		10.2	%		19.2	%
Expense ratio				31.3	%		66.8	%		27.2	%		31.8	%
Combined ratio				106.6	%		108.1	%		72.9	%		92.0	%

12

ALLIED WORLD ASSURANCE COMPANY HOLDINGS, AG

UNAUDITED CONSOLIDATED SEGMENT RESULTS

FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2013

			Three months ended September 30, 2013
			North American			Global Markets						Consolidated
			Insurance			Insurance			Reinsurance			Totals
Revenues
	Gross premiums written		$	389,550		$	52,040		$	139,303		$	580,893
	Net premiums written		$	280,862		$	33,562		$	138,653		$	453,077
	Net premiums earned		$	263,172		$	31,984		$	215,617		$	510,773
		Total revenues	$	263,172		$	31,984		$	215,617		$	510,773
Expenses
	Net losses and loss expenses		$	157,308		$	15,008		$	104,654		$	276,970
	Acquisition costs			25,670			2,474			36,970			65,114
	General and administrative expenses			53,011			15,055			20,487			88,553
		Total expenses	$	235,989		$	32,537		$	162,111		$	430,637
Underwriting income (loss)			$	27,183		$	(553)		$	53,506		$	80,136
	Other insurance-related income			—			—			—			—
	Other insurance-related expenses			—			—			—			—
Segment income (loss)			$	27,183		$	(553)		$	53,506		$	80,136
	Net investment income												39,271
	Net realized investment gains												27,487
	Amortization of intangible assets												(633)
	Interest expense												(14,094)
	Foreign exchange loss												(4,353)
Income before income taxes												$	127,814
GAAP Ratios
Loss and loss expense ratio				59.8	%		46.9	%		48.5	%		54.2	%
Acquisition cost ratio				9.8	%		7.7	%		17.1	%		12.7	%
General and administrative expense ratio				20.1	%		47.1	%		9.5	%		17.3	%
Expense ratio				29.9	%		54.8	%		26.6	%		30.0	%
Combined ratio				89.7	%		101.7	%		75.1	%		84.2	%

13

ALLIED WORLD ASSURANCE COMPANY HOLDINGS, AG

UNAUDITED CONSOLIDATED SEGMENT RESULTS

FOR THE THREE MONTHS ENDED JUNE 30, 2013

			Three months ended June 30, 2013
			North American			Global Markets						Consolidated
			Insurance			Insurance			Reinsurance			Totals
Revenues
	Gross premiums written		$	441,557		$	58,333		$	265,310		$	765,200
	Net premiums written		$	290,989		$	36,824		$	253,409		$	581,222
	Net premiums earned		$	253,345		$	31,132		$	222,794		$	507,271
		Total revenues	$	253,345		$	31,132		$	222,794		$	507,271
Expenses
	Net losses and loss expenses		$	142,431		$	12,901		$	119,796		$	275,128
	Acquisition costs			24,194			2,718			37,705			64,617
	General and administrative expenses			48,565			13,872			18,148			80,585
		Total expenses	$	215,190		$	29,491		$	175,649		$	420,330
Underwriting income			$	38,155		$	1,641		$	47,145		$	86,941
	Other insurance-related income			—			—			—			—
	Other insurance-related expenses			—			—			—			—
Segment income			$	38,155		$	1,641		$	47,145		$	86,941
	Net investment income												37,635
	Net realized investment losses												(115,198)
	Amortization of intangible assets												(634)
	Interest expense												(14,188)
	Foreign exchange loss												(490)
Loss before income taxes												$	(5,934)
GAAP Ratios
Loss and loss expense ratio				56.2	%		41.4	%		53.8	%		54.2	%
Acquisition cost ratio				9.5	%		8.7	%		16.9	%		12.7	%
General and administrative expense ratio				19.2	%		44.6	%		8.1	%		15.9	%
Expense ratio				28.7	%		53.3	%		25.0	%		28.6	%
Combined ratio				84.9	%		94.7	%		78.8	%		82.8	%

14

ALLIED WORLD ASSURANCE COMPANY HOLDINGS, AG

UNAUDITED CONSOLIDATED SEGMENT RESULTS

FOR THE THREE MONTHS ENDED MARCH 31, 2013

			Three months ended March 31, 2013
			North American			Global Markets						Consolidated
			Insurance			Insurance			Reinsurance			Totals
Revenues
	Gross premiums written		$	338,674		$	45,860		$	452,547		$	837,081
	Net premiums written		$	239,621		$	30,377		$	425,054		$	695,052
	Net premiums earned		$	244,063		$	28,590		$	190,575		$	463,228
		Total revenues	$	244,063		$	28,590		$	190,575		$	463,228
Expenses
	Net losses and loss expenses		$	153,941		$	8,318		$	92,919		$	255,178
	Acquisition costs			20,465			1,814			34,406			56,685
	General and administrative expenses			50,025			14,360			18,295			82,680
		Total expenses	$	224,431		$	24,492		$	145,620		$	394,543
Underwriting income			$	19,632		$	4,098		$	44,955		$	68,685
	Other insurance-related income			—			—			—			—
	Other insurance-related expenses			—			—			—			—
Segment income			$	19,632		$	4,098		$	44,955		$	68,685
	Net investment income												33,388
	Net realized investment gains												79,637
	Amortization of intangible assets												(633)
	Interest expense												(14,134)
	Foreign exchange loss												(2,518)
Income before income taxes												$	164,425
GAAP Ratios
Loss and loss expense ratio				63.1	%		29.1	%		48.8	%		55.1	%
Acquisition cost ratio				8.4	%		6.3	%		18.1	%		12.2	%
General and administrative expense ratio				20.5	%		50.2	%		9.6	%		17.8	%
Expense ratio				28.9	%		56.5	%		27.7	%		30.0	%
Combined ratio				92.0	%		85.6	%		76.5	%		85.1	%

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