 Investor Presentation 2 Quarter 2013 Exhibit 99.1 nd |
 This presentation contains certain statements, estimates and forecasts with respect to future performance and events. These statements, estimates and forecasts are "forward-looking statements". In some cases, forward-looking statements can be identified by the use of forward-looking terminology such as "may," “might,” “will," “should,” "expect," “plan,” "intend," "estimate," "anticipate," "believe,” “predict,” “potential” or "continue" or the negatives thereof or variations thereon or similar terminology. All statements other than statements of historical fact included in this presentation are forward-looking statements and are based on various underlying assumptions and expectations and are subject to known and unknown risks, uncertainties and assumptions, may include projections of our future financial performance based on our growth strategies and anticipated trends in our business. These statements are only predictions based on our current expectations and projections about future events. There are important factors that could cause our actual results, level of activity, performance or achievements to differ materially from the results, level of activity, performance or achievements expressed or implied in the forward-looking statements. As a result, there can be no assurance that the forward-looking statements included in this presentation will prove to be accurate or correct. In light of these risks, uncertainties and assumptions, the future performance or events described in the forward-looking statements in this presentation might not occur. Accordingly, you should not rely upon forward-looking statements as a prediction of actual results and we do not assume any responsibility for the accuracy or completeness of any of these forward-looking statements that may be made from time to time. We are under no obligation (and expressly disclaim any such obligation) to update or revise any forward-looking statements, whether as a result of new information, future developments or otherwise. 2 Forward-Looking Statements & Safe Harbor |
 Agenda 3 Executive Summary Executive Summary Operating Segments Operating Segments U.S. Insurance U.S. Insurance International Insurance International Insurance Reinsurance Reinsurance Financial Highlights Financial Highlights Conclusion Conclusion Appendix Appendix |
 Allied World’s Franchise Specialty property and casualty insurer and reinsurer with niche businesses and significant geographic reach Experienced executive management team with a strong risk management culture Total return investment philosophy Excellent capitalization with active capital management Highly Rated – “A” (Excellent) by A.M. Best, “A” (Strong) by S&P, “A2” (Good) by Moody’s and “A+” (Good) by Fitch Industry leading results and value creation 4 |
 Niche specialty insurance and reinsurance products offered across a global platform with operations in the U.S., Bermuda, Lloyd’s, Europe, Hong Kong and Singapore Emphasis on insurance and casualty lines with opportunistic reinsurance and property capabilities Customer focus Moving closer to clients Demonstrated expertise in markets in which we underwrite A “go to” market for targeted lines and industry verticals such as healthcare and real estate/construction Allied World – A Niche Mix of Specialty Lines We are a leading specialist insurance company with a broad range of product offerings, global capabilities and a significant U.S. focus 5 Specialty Reinsurance 7% Inland Marine 1% Property Reinsurance 14% General Property 10% Casualty Reinsurance 14% General Casualty 18% Healthcare 14% Professional Liability 17% Other 5% Total TTM at June 30, 2013 GPW: $ 2,603M 65% Insurance / 35% Reinsurance 75% Casualty / 25% Property |
 6 2007 GPW: $1,506M In response to the changing macro economic environment, Allied World has transformed itself since 2007 Total TTM at June 30, 2013 GPW: $2,603M Allied World 2007 Allied World Today Reduced dependence on Bermuda large account excess business U.S. segment has increased significantly with focus on small and middle market account primary and specialty business Reinsurance segment has strong U.S. presence and is growing internationally Experienced Management: Shifting the Business Focus International Insurance 52% U.S. Insurance 13% Reinsurance 35% U.S. Insurance 42% International Insurance 23% Reinsurance 35% |
 o We focus on total investment return as a key driver of book value growth, of which net investment income is one component • All investments categorized as “trading”, with mark to market flowing through the income statement • Similar treatment of cash and derivatives • Management incentive focused on net income o We currently maintain a short duration, overweight credit position in core fixed income o We continue to build out the non- core portfolio in 2013 including equity investments through Allied World Financial Services o Emphasis on detailed transparency 7 Investment Strategy - Focused on maximizing total return performance via a diversified portfolio * Prior to the 2009 move from an “available for sale” portfolio to a trading portfolio, which impacts the presentation of returns from the non-core portfolio. 2009 excludes the impact of adopting ASC 320-10-65. $7.7 $8.1 $8.5 Portfolio Size ($Bn) $6.2 $6.9 $7.5 $8.9 $8.6 $426 $20 $556 $469 $160 $456 $217 $35 Total Investment Return ($MM) Book Yield vs. Total Return $136 $298 ($8) $309 ($273) ($16) $179 $77 $301 $286 $244 ($61) $10 $196 ($46) $306 $167 ($18) $142 $90 ($15) $71 ($36) 1H 2013 1H 2012 2012 2011 2010 Net investment income Realized gains (losses) Change in unrealized gains (losses) 7.0% 4.9% 4.8% 0.3% 7.7% 4.2% 6.1% 3.3% 2.5% 2.0% 5.5% 2.1% 2.6% 2.2% 1.7% 0.4% 1H 2013 1H 2012 2012 2011 2010 Book yield Total Return 2007 * 2008 * 2009 * 2007 * 2008 * 2009 * |
 Active Capital Management Improves Shareholder Value 8 Diluted book value per share has more than doubled since 2008 (In millions, except for per share amounts) * Excludes $243.8 million syndicated loan that was repaid on February 23, 2009. * * $46.05 $59.56 $74.29 $80.11 $92.59 $96.18 $2,916 $3,712 $3,873 $3,947 $4,124 $4,172 $499 $499 $798 $798 $798 $798 $2,417 $3,213 $3,075 $3,149 $3,326 $3,373 -$646 -$682 -$1,475 -$1,658 -$1,975 -$2,088 2008 2009 2010 2011 2012 June 2013 Debt Diluted Book Value per Share Shareholder’s Equity Accumulated Share and Warrant Repurchases & Dividends Capital Management History o Share Repurchases: • $1.8 billion of shares and warrants repurchased since December 2007 • $311 million remaining capacity in share repurchase program as of July 2013 • Increased the dividend over 30% in May 2013 to $0.50 per share • $293 million of common dividends since going public in 2006 • Financial leverage of 19.1% at June 2013 o Dividends: o Conservative Capital Position: |
 Growth in book value per share calculated by taking change in book value per share from June 30, 2008 through June 30, 2013 adjusted for dividends. Diluted book value per share used when available. * Includes dividend of $0.50 per share declared in Q2 2013. Source: SNL Financial 9 Peer Average = 60.0% Five Year Growth in Book Value per Share July 2008 – June 2013 Superior Value Creation Allied World* ProAssurance Arch Markel RLI HCC W.R. Berkley Endurance Navigators Axis Aspen Hanover Argo OneBeacon 125.8% 107.7% 92.1% 79.0% 74.8% 68.2% 55.5% 53.5% 52.7% 42.7% 42.0% 37.5% 68.3% 5.5% |
 Quarterly Highlights – Second Quarter 2013 Strong underwriting profitability, led by our sixth consecutive quarter of double digit top line growth, drove operating results 10 • Underwriting income of $87 million for quarter, up 36% from prior period o Combined ratio of 82.8% o Expense ratio of 28.6% • Gross premiums written of $765 million for quarter, up 18% from prior period o U.S. Insurance gross premiums written increased $41 million, up 16% o International Insurance gross premiums written increased $9 million, up 5% o Reinsurance gross premiums written increased $68 million, up 34% • Book value per share was largely flat from the first quarter of 2013 at $96.18, an increase of 9% over Q2 2012. |
 Agenda 11 Executive Summary Executive Summary Operating Segments Operating Segments U.S. Insurance U.S. Insurance International Insurance International Insurance Reinsurance Reinsurance Financial Highlights Financial Highlights Conclusion Conclusion Appendix Appendix |
 U.S. Insurance Segment - A small and middle-market, U.S.- based specialty franchise with niche product offerings • Direct property and casualty insurance for small and middle-market, non-Fortune 1000 companies • Industry verticals strategy o Focused on servicing products in select industry classes, including healthcare, private / non-profit, and public entity / construction • Specialty product capabilities o Defense Base Act approved underwriter, surety, primary construction, environmental, inland marine and M&A capabilities • 10 branch offices in strategic locations throughout the U.S. • Admitted and excess & surplus lines (E&S) capabilities in all 50 states • Increased access to attractive small account primary business Allied World U.S. Insurance 12 Total TTM at June 30, 2013 GPW: $1,087M Inland Marine 3% Programs 5% Environmental 3% M&A 1% Primary Construction 1% Primary General Casualty 13% D&O Private 7% D&O Public 7% E&O 10% Excess General Casualty 15% General Property 9% Healthcare 26% |
 Allied World International 13 International Insurance Segment - A targeted global presence Total TTM at June 30, 2013 GPW: $598M SME 1% Trade Credit 5% General Property 27% Healthcare 14% General Casualty 23% Professional Lines 30% • Lloyd’s Syndicate 2232 o Association with Lloyd’s enhances Allied World’s brand recognition o Increases access to Latin America and Asia- Pacific region o Offers individual risk products • MGA business initiated in targeted areas • Offices in Bermuda, Dublin, Hong Kong, London, Singapore and Switzerland position the company to meet developing opportunities o Trade credit and political risk o International healthcare o Small-to-medium enterprises (SME Professional) • Specialty product capabilities: |
 14 Opportunistic and flexible approach to respond to dynamic market opportunities U.S. operation has improved access to U.S. regional business and strengthened local relationships Strategic Bermuda Platform Miami, Singapore, and Swiss offices and Lloyd’s Syndicate 2232 increase global reach Reinsurance Segment - Flexibility to take advantage of opportunities as they arise Allied World Reinsurance North American Property 7% Professional Liability 6% Global Marine, Aerospace & Crop 15% General Casualty 20% Global Property 7% Global CAT 13% North American CAT 21% Specialty 5% Global Casualty 6% Total TTM at June 30, 2013 GPW: $918M Expansion into newer lines including crop and hail Partnership with Aeolus Capital Management Property reinsurance capabilities that focus on small and medium account regional carriers Property catastrophe, property per risk, workers’ compensation catastrophe, accident & health and specialty casualty |
 Agenda 15 Executive Summary Executive Summary Operating Segments Operating Segments U.S. Insurance U.S. Insurance International Insurance International Insurance Reinsurance Reinsurance Financial Highlights Financial Highlights Conclusion Conclusion Appendix Appendix |
 Operating Results 1H 2013 1H 2012 2012 2011 2010 2009 Net Income $157 $315 $493 $275 $665 $607 Operating Income $188 $179 $203 $184 $398 $538 Net Income Return on Average Equity 9.4% 19.6% 15.3% 8.9% 21.9% 22.6% Operating Return on Average Equity 11.2% 11.1% 6.3% 6.0% 13.1% 20.0% Combined Ratio 83.9% 85.2% 94.5% 95.9% 84.9% 76.1% Cash Flow from Operations $134 $302 $629 $548 $451 $668 Total Financial Statement Portfolio Return 0.4% 2.6% 5.5% 2.0% 6.1% 7.9% Ending Diluted Book Value per Share $96.18 $88.24 $92.59 $80.11 $74.29 $59.56 Growth in Diluted Book Value per Share 3.9% 10.2% 15.6% 7.8% 24.7% 29.3% Allied World has reported consistently strong results despite a competitive landscape, financial turbulence and catastrophe activity 16 ($ in millions, except per share amounts) Financial Highlights |
 17 Expense Ratio Declining as We Build Scale Note: GAAP expense ratio *Peer average includes ACGL, AGII, AHL, AXS, ENH, HCC, MKL, NAVG, OB, PRA, RLI, THG and WRB. Source: SNL Financial Allied World expanded global operations, including: the build-out of the U.S. platform, the acquisition of Darwin, the establishment of a U.S. reinsurance company and the opening of Lloyd's Syndicate 2232 30.1% 30.4% 32.1% 33.6% 33.7% 34.2% 34.5% 22.5% 26.7% 30.2% 32.8% 30.1% 29.4% 29.3% 2007 2008 2009 2010 2011 2012 1H 2013 Allied World Peer Average* |
 18 Growth Balanced With Underwriting Profitability -Consistent performance despite a presence in varied lines of business Five Year Performance Average Combined Ratio vs. Growth in Net Premiums Earned * ProAssurance not shown on chart (five year Average Combined Ratio of 62.5% with net premiums earned five-year CAGR of 2.4% from July 2008 through June 2013). Source: SNL Financial 15% 10% 5% 0% (5%) (10%) 80.0% 85.0% 90.0% 95.0% 100.0% 105.0% RLI HCC Arch Axis Aspen W.R. Berkley Endurance Navigators Markel Hanover Argo Allied World OneBeacon 5 Year Average Combined Ratio |
 Underwriting performance has been strong since our inception (1) Pro-forma including Darwin development since inception. (2) Case incurred ratios by year are not directly comparable to our financial statements as reinsurance case incurred losses shown above are on a treaty year basis. 19 Historical Loss Ratios Through June 2013 ($MM) (1) (2) Strong Underwriting Results AY 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 CY Total CY Original Loss Ratio 70.1% 65.3% 75.9% 103.1% 59.6% 58.4% 55.6% 45.9% 52.0% 65.8% 65.1% 54.6% Prior Year Development 0.0% -4.9% -5.8% -3.6% -8.2% -10.2% -24.2% -18.8% -23.0% -17.4% -9.7% -9.5% AY Original Loss Ratio 70.1% 70.1% 81.7% 106.7% 67.7% 68.6% 79.8% 64.7% 75.1% 83.2% 74.9% 64.2% 2002 2003 (56.8) (56.8) 2004 (26.7) (52.7) (79.4) 2005 (8.4) (45.7) 5.6 (48.5) 2006 (16.5) (43.1) (45.3) (8.2) (113.0) 2007 6.2 (33.8) (76.9) (6.2) (26.1) (136.9) 2008 (8.9) (87.9) (100.3) (73.8) (7.8) (33.9) (312.6) 2009 (16.5) (57.2) (118.1) (102.5) 11.6 2.4 32.2 (248.0) 2010 4.4 (10.9) (57.0) (146.7) (54.4) (24.8) (22.6) (1.2) (313.4) 2011 (0.0) (1.3) (22.1) (89.5) (42.3) (68.7) (21.7) (27.9) 20.1 (253.5) 2012 4.4 (3.5) (9.1) (11.1) (81.7) (90.9) (34.9) (7.9) 11.1 53.4 (170.3) 2013 6.8 (0.8) (6.5) (10.8) (10.9) (25.5) (31.0) (3.2) (14.9) 5.1 (0.8) (92.5) Subsequent Development (112.2) (336.8) (429.6) (448.9) (211.6) (241.5) (78.1) (40.2) 16.2 58.5 (0.8) (1,825.0) Loss Ratio Points -25.8% -28.8% -31.3% -33.1% -15.3% -18.0% -6.1% -3.1% 1.2% 4.0% 0.0% AY Developed 44.2% 41.4% 50.4% 73.6% 52.4% 50.5% 73.8% 61.6% 76.2% 87.2% 74.8% 64.2% Cat Losses 16.3% 27.8% 9.3% 5.8% 19.7% 10.1% AY Developed EX Cat Losses 44.2% 41.4% 34.1% 45.9% 52.4% 50.5% 64.5% 61.6% 70.5% 67.5% 64.7% 64.2% Case Incurred through 2013 Q2 42.2% 34.1% 46.4% 61.6% 40.7% 41.4% 53.8% 33.3% 49.7% 45.7% 33.2% 8.3% Remaining IBNR / EP Ratio @ 2013 Q2 2.0% 7.3% 4.0% 12.0% 11.7% 9.1% 19.9% 28.4% 26.5% 41.6% 41.7% 55.8% |
 June 30, 2013 Total: $4.5 B • Net reserves about 4.1% above mid-point of range at June 30, 2013 • $1.8 billion net favorable reserve development since inception • 72% of net reserves are IBNR Net Loss & LAE Reserve Mix at June 30, 2013 Case U.S. Insurance 10% IBNR International Insurance 27% Case International Insurance 9% IBNR Reinsurance 22% Case Reinsurance 10% IBNR U.S. Insurance 22% Net Prior Year Reserve Releases* ($MM) Range of Net Reserves at June 30, 2013 ($MM) 20 * Pro-forma including Darwin development since inception Prudent Reserving Philosophy U.S. Insurance International Insurance Reinsurance Low Estimate Carried High Estimate $1,141 $1,456 $1,644 $1,228 $1,575 $1,788 $1,178 $1,487 $1,699 $113 $137 $313 $248 $313 $254 $170 $81 $92 2006 2007 2008 2009 2010 2011 2012 1H 2012 1H 2013 |
 21 Investment Portfolio Highlights Contribution to Total Return Investment Portfolio Composition In response to the current environment and outlook, we have increased our allocation to investment strategies outside of the core fixed income portfolio As of June 30, 2013, our investment portfolio consisted of $8.6 billion in cash and invested assets with an average credit quality of AA-. Core fixed income consists of cash, investment grade U.S. and Non-U.S. government securities, corporate bonds, MBS, ABS and municipal securities. 3.3 3.0 2.7 1.9 2.0 2.0 2.2 100% 75% 50% 25% 0% 2008 2009 2010 2011 2012 Q1 2013 Q2 2013 Core Fixed Income Bank Loans Hedge Funds Private equity (funded) Duration AWFS Equity Equity Distressed RMBS High Yield & Non-Dollar 2009 2010 2011 2012 Q1 2013 Q2 2013 (0.9%) 1.3% 5.5% 2.0% 6.1% 7.7% 1.0% 6.7% 5.4% 0.7% 2.9% (0.9%) 4.1% 1.0% 0.3% 0.3% (1.2%) 1.4% Return from Non-Core Strategy Return from Fixed Income Strategy |
 Peer Comparisons – Net Income ROE Source: SNL Financial 22 Five Year Average Quarterly Annualized Net Income ROE July 2008 – June 2013 Peer Average = 8.0% Peer Average = 8.0% Allied World ProAssurance Arch RLI HCC W.R. Berkley Axis Endurance Aspen Markel Hanover Argo OneBeacon Navigators 13.8% 13.5% 13.5% 12.6% 10.6% 9.6% 8.2% 7.8% 6.5% 6.0% 4.7% 4.5% 3.5% 3.1% |
 Agenda U.S. Insurance U.S. Insurance International Insurance International Insurance Reinsurance Reinsurance 23 Executive Summary Executive Summary Operating Segments Operating Segments Financial Highlights Financial Highlights Conclusion Conclusion Appendix Appendix |
 24 Strong growth in underwriting income from niche businesses • Gross premiums increasing in each operating segment Historically strong returns • Combined ratio compares favorably to peers • Expense ratio remains at or below 30% Solid investment returns Active capital management Industry leading value creation Current valuation is attractive given the company’s historical performance and strong position to capitalize on market opportunities Conclusion |
 Growth in book value per share calculated by taking change in book value per share from June 30, 2008 through June 30, 2013 adjusted for dividends. Diluted book value per share used when available. Five Year Growth in Book Value per Share (through June 2013) vs. Price to Book Value @ August 8, 2013 25 Conclusion - Allied World is attractively valued given its demonstrated ability to grow book value 2.3x 2.0x 1.8x 1.5x 1.3x 1.0x 0.8x 0.5x 0% 15% 30% 45% 60% 75% 90% 105% 120% 135% Allied World ProAssurance Arch RLI W.R. Berkley HCC Markel Axis Endurance Navigators Aspen Hanover Argo OneBeacon Five Year Growth in Diluted Book Value Per Share |
 Agenda U.S. Insurance U.S. Insurance International Insurance International Insurance Reinsurance Reinsurance Appendix Appendix 26 Executive Summary Executive Summary Operating Segments Operating Segments Financial Highlights Financial Highlights Conclusion Conclusion |
 Non-GAAP Financial Measures 27 In presenting the company's results, management has included and discussed in this presentation certain non generally accepted accounting principles ("non-GAAP") financial measures within the meaning of Regulation G as promulgated by the U.S. Securities and Exchange Commission. Management believes that these non-GAAP measures, which may be defined differently by other companies, better explain the company's results of operations in a manner that allows for a more complete understanding of the underlying trends in the company's business. However, these measures should not be viewed as a substitute for those determined in accordance with generally accepted accounting principles ("U.S. GAAP"). "Operating income" is an internal performance measure used in the management of the company’s operations and represents after-tax operational results excluding, as applicable, net realized investment gains or losses, net impairment charges recognized in earnings, net foreign exchange gain or loss and other non-recurring items. The company excludes net realized investment gains or losses, net impairment charges recognized in earnings, net foreign exchange gain or loss, and other non-recurring items from the calculation of operating income because these amounts are heavily influenced by and fluctuate in part according to the availability of market opportunities and other factors. The company has excluded from operating income the termination fee received from Transatlantic Holdings, Inc. in 2011 as this is a non-recurring item. In addition to presenting net income determined in accordance with U.S. GAAP, the company believes that showing operating income enables investors, analysts, rating agencies and other users of the company’s financial information to more easily analyze our results of operations and underlying business performance. Operating income should not be viewed as a substitute for U.S. GAAP net income. The company has included "diluted book value per share" because it takes into account the effect of dilutive securities; therefore, the company believes it is an important measure of calculating shareholder returns. "Annualized net income return on average shareholders' equity" ("ROAE") is calculated using average shareholders’ equity, excluding the average after tax unrealized gains (or losses) on investments. Unrealized gains (losses) on investments are primarily the result of interest rate and credit spread movements and the resultant impact on fixed income securities. Such gains (losses) are not related to management actions or operational performance, nor are they likely to be realized. Therefore, the company believes that excluding these unrealized gains (losses) provides a more consistent and useful measurement of operating performance, which supplements U.S. GAAP information. In calculating ROAE, the net income (loss) available to shareholders for the period is multiplied by the number of such periods in a calendar year in order to arrive at annualized net income (loss) available to shareholders. The company presents ROAE as a measure that is commonly recognized as a standard of performance by investors, analysts, rating agencies and other users of its financial information. "Annualized operating return on average shareholders' equity" is calculated using operating income (as defined above and annualized in the manner described for net income (loss) available to shareholders under ROAE above), and average shareholders' equity, excluding the average after tax unrealized gains (losses) on investments. Unrealized gains (losses) are excluded from equity for the reasons outlined in the annualized net income return on average shareholders' equity explanation above. See slides 28 - 30 for a reconciliation of non-GAAP measures used in this presentation to their most directly comparable U.S. GAAP measures. |
 28 Non-GAAP Financial Measures - Reconciliations ALLIED WORLD ASSURANCE COMPANY HOLDINGS, AG UNAUDITED OPERATING INCOME RECONCILIATION (Expressed in thousands of United States dollars, except share and per share amounts) Quarter Ended June 30, Six Months Ended June 30, 2013 2012 2013 2012 Net (loss) income $ (1,862) $ 96,351 $ 157,130 $ 314,507 Add after tax effect of: Net realized investment losses (gains) 104,897 (8,014) 27,555 (134,584) Foreign exchange loss (gain) 490 (1,019) 3,008 (1,100) Operating income $ 103,525 $ 87,318 $ 187,693 $ 178,823 Weighted average common shares outstanding: Basic 34,422,553 36,288,596 34,517,552 36,746,881 Diluted 35,136,296 37,189,722 35,316,595 37,395,559 Basic per share data: Net (loss) income $ (0.05) $ 2.66 $ 4.55 $ 8.56 Add after tax effect of: Net realized investment losses (gains) 3.05 (0.22) 0.80 (3.66) Foreign exchange loss (gain) 0.01 (0.03) 0.09 (0.03) Operating income $ 3.01 $ 2.41 $ 5.44 $ 4.87 Diluted per share data: Net (loss) income $ (0.05)* $ 2.59 $ 4.45 $ 8.41 Add after tax effect of: Net realized investment losses (gains) 2.99 (0.22) 0.78 (3.60) Foreign exchange loss (gain) 0.01 (0.02) 0.08 (0.03) Operating income $ 2.95 $ 2.35 $ 5.31 $ 4.78 * * Diluted weighted average common shares outstanding were only used in the calculation of diluted operating income per share. There were no common share equivalents included in calculating diluted earnings per share as there was a net loss and any additional shares would be anti-dilutive. |
 Non-GAAP Financial Measures - Reconciliations 29 ALLIED WORLD ASSURANCE COMPANY HOLDINGS, AG UNAUDITED ANNUALIZED RETURN ON SHAREHOLDERS' EQUITY RECONCILIATION (Expressed in thousands of United States dollars, except for percentage information) Quarter Ended June 30, Six Months Ended June 30, 2013 2012 2013 2012 Opening shareholders' equity $ 3,431,963 $ 3,245,821 $ 3,326,335 $ 3,149,022 Deduct: accumulated other comprehensive income — (2,325) — (14,484) Adjusted opening shareholders' equity 3,431,963 3,243,496 3,326,335 3,134,538 Closing shareholders' equity $ 3,373,229 $ 3,283,901 $ 3,373,229 $ 3,283,901 Deduct: accumulated other comprehensive income — (1,414) — (1,414) Adjusted closing shareholders' equity 3,373,229 3,282,487 3,373,229 3,282,487 Average shareholders' equity $ 3,402,596 $ 3,262,992 $ 3,349,782 $ 3,208,513 Net (loss) income available to shareholders $ (1,862) $ 96,351 $ 157,130 $ 314,507 Annualized net (loss) income available to shareholders (7,448) 385,404 314,260 629,014 Annualized return on average shareholders' equity - net (loss) income available to shareholders (0.2%) 11.8% 9.4% 19.6% Operating income available to shareholders $ 103,525 $ 87,318 $ 187,693 $ 178,823 Annualized operating income available to shareholders 414,100 349,272 375,386 357,646 Annualized return on average shareholders' equity - operating income available to shareholders 12.2% 10.7% 11.2% 11.1% |
 Non-GAAP Financial Measures - Reconciliations 30 ALLIED WORLD ASSURANCE COMPANY HOLDINGS, AG UNAUDITED DILUTED BOOK VALUE PER SHARE RECONCILIATION (Expressed in thousands of United States dollars, except share and per share amounts) As of As of As of June 30, December 31, June 30, 2013 2012 2012 Price per share at period end $ 91.51 $ 78.80 $ 79.47 Total shareholders’ equity $ 3,373,229 $ 3,326,335 $ 3,283,901 Basic common shares outstanding 34,175,831 34,797,781 35,942,964 Add: unvested restricted share units 83,730 135,123 185,809 Add: performance based equity awards 270,853 485,973 510,530 Add: employee purchase plan 10,622 10,750 - Add: dilutive options outstanding 1,111,266 1,224,607 1,365,245 Weighted average exercise price per share $ 47.65 $ 47.02 $ 46.04 Deduct: options bought back via treasury method (578,610) (730,652) (790,888) Common shares and common share equivalents outstanding 35,073,692 35,923,582 37,213,660 Basic book value per common share $ 98.70 $ 95.59 $ 91.36 Diluted book value per common share $ 96.18 $ 92.59 $ 88.24 Year-to-date percentage change in basic book value per common share 3.3% 4.6% Year-to-date percentage change in dilutive book value per common share 3.9% 4.9% |