 Investor Presentation 4 th Quarter 2013 Exhibit 99.1 |
 2 Forward-Looking Statements & Safe Harbor 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, and 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. |
 Agenda Executive Summary Operating Segments U.S. Insurance International Insurance Reinsurance Financial Highlights Conclusion Appendix 3 |
 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, emphasis on detailed transparency Conservative approach, 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, Canada, 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 specialty insurance company with a broad range of product offerings, global capabilities and a significant U.S. focus 5 Total 2013 GPW: $2,739M 66% Insurance / 34% Reinsurance 72% Casualty / 28% Property |
 6 2007 GPW: $1,506M In response to the changing macro economic environment, Allied World has transformed itself since 2007 2013 GPW: $2,739M Allied World 2007 Allied World Today Reduced dependence on Bermuda large account excess business and expansion in Europe, including launch of Syndicate 2232 at Lloyd’s Post the 2008 Darwin acquisition, the U.S. segment has increased significantly with focus on small and middle market account primary and specialty business Reinsurance segment has a strong U.S. presence and is growing internationally Experienced Management: Shifting the Business Focus International Insurance 23% Reinsurance 34% U.S. Insurance 43% International Insurance 52% U.S. Insurance 13% Reinsurance 35% |
 Allied World’s Evolution 7 Purchased Darwin Professional Underwriters 2008 Terminated merger agreement with Transatlantic 2011 2012 Launched Lloyd’s Syndicate 2232 2010 Opened Hong Kong and Singapore offices 2009 Swiss redomestication Build out of additional U.S. insurance lines, including Defense Base Act, Surety, Construction, and Environmental, as well as Crop Reinsurance Completed purchase of Founders’ interest 2013 Hired over 60 underwriters Opened Zug office Launched Allied World Financial Services Build out of European platform including Aviation, Marine and Primary Casualty Significant milestones achieved over the past five years have shaped the franchise Opened Toronto office |
 8 Strategy of Hiring Focused, Experienced Leadership Targeted growth driven by key teams with seasoned experience and a shared culture Recently Hired Underwriting Teams (1) (1) Senior underwriters are Assistant Vice President level and above. Underwriting Team Senior Underwriters Average Years Industry Experience Selected Former Experience Aviation 3 15 Alterra/Markel Construction 1 17 AIG Crop Reinsurance 1 28 Platinum Defense Base Act 11 15 AIG, ACE Environmental 6 12 AIG, Tokio Marine Inland Marine 6 15 Axis, OneBeacon Marine 2 25 Alterra, CV Starr, AIG Primary Casualty 3 37 XL Insurance, HCC Surety 3 10 AIG, American Safety U.S. M&A 3 12 AIG, Gulf, Banking/Finance Roles 8 |
 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 • Senior management incentive compensation largely focused on net income • Emphasis on detailed transparency 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 9 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. Portfolio Size ($Bn) Total Investment Return ($MM) Book Yield vs. Total Return 7.0% 0.3% 7.7% 6.1% 2.0% 5.5% 2.6% 4.9% 4.8% 4.2% 3.3% 2.5% 2.1% 1.9% 2007 2010 2011 2012 2013 Book yield Total Return * 2009 * 2008 * $298 $309 $301 $244 $196 $167 $158 ($8) ($273) $77 $286 $10 $306 $59 $136 ($16) $179 ($61) ($46) ($18) 2008 2009 2010 2011 2012 2013 Net investment income Realized gains (losses) Change in unrealized gains (losses) * * * $426 $20 $557 $469 $160 $455 $217 $6.3 $6.9 $7.5 $8.0 $8.1 $8.8 $8.4 2007 |
 - - - - - - Active Capital Management Improves Shareholder Value 10 Diluted book value per share has more than doubled since 2008 (In millions, except for per share amounts) (1) Excludes $243.8 million syndicated loan that was repaid on February 23, 2009. (2) Includes dividends paid in January 2014. (1) (1) (2) $2,417 $3,213 $3,075 $3,149 $3,326 $3,520 $499 $499 $798 $798 $798 $798 $646 $682 $1,475 $1,658 $1,975 $2,214 $2,916 $3,712 $3,873 $3,947 $4,124 $4,318 $46.05 $59.56 $74.29 $80.11 $92.59 $102.58 2008 2009 2010 2011 2012 2013 Capital Management History Share Repurchases: • $1.9 billion of shares and warrants repurchased since December 2007 • $213 million remaining capacity in share repurchase program as of January 2014 • Increased the dividend over 33% in May 2013 to $0.50 per share • $327 (2) million of common dividends paid since going public in 2006 • Financial leverage of 18.5% at December 2013 Dividends: Conservative Capital Position: Accumulated Share and Warrant Repurchases & Dividends Debt Shareholders' Equity Diluted Book Value per Share |
 Growth in book value per share calculated by taking change in book value per share from December 31, 2008 through December 31, 2013 adjusted for regular and special dividends. Diluted book value per share used when available. (1) Includes dividend of $0.50 per share declared in Q4 2013. Source: SNL Financial, Company filings 11 Peer Average = 83.4% Five Year Growth in Book Value per Share 2009 – 2013 Superior Value Creation (1) 136.4% 132.6% 114.7% 102.6% 96.7% 95.1% 90.6% 84.2% 75.0% 70.3% 58.7% 56.3% 55.4% 51.5% Allied World Arch Markel ProAssurance RLI Axis W.R. Berkley Endurance Hanover HCC OneBeacon Aspen Navigators Argo |
 Agenda Executive Summary Operating Segments U.S. Insurance International Insurance Reinsurance Financial Highlights Conclusion Appendix 12 |
 U.S. Insurance Segment - A small and middle-market, U.S.- based specialty franchise with niche product offerings • Property and casualty insurance for small and middle-market, non-Fortune 1000 companies • Industry verticals strategy o Focused on servicing products in select specialty 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 • 11 branch offices in strategic locations throughout North America (including Toronto office) • 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 13 2013 GPW: $1,163M Healthcare 20% Inland Marine 4% Primary General Casualty 15% Programs 8% D&O Private 6% D&O Public 7% E&O 10% Environmental 3% Excess General Casualty 16% General Property 8% M&A 1% Primary Construction 2% |
 Allied World International 14 International Insurance Segment - A targeted global presence 2013 GPW: $642M • Specialty product capabilities: o Recently announced entry into aviation, marine and primary casualty o Trade credit and political risk o International healthcare o Small-to-medium enterprises (SME Professional) • 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 • Managing general agent (MGA) business initiated in targeted areas • Offices in Bermuda, Dublin, Hong Kon London, Singapore and Switzerland position the company to meet developing opportunities |
 15 Reinsurance Segment - Flexibility to take advantage of opportunities as they arise 2013 GPW: $934M Allied World Reinsurance • Opportunistic and flexible approach to respond to dynamic market opportunities o Expansion into newer lines including crop global marine and global property catastrophe o Strategic partnership with Aeolus Capital Management • U.S. operation has access to U.S. regional business and strong local relationships o Property reinsurance capabilities that focus on small and medium account regional carriers • Strategic Bermuda platform o Property catastrophe, property per risk, workers’ compensation catastrophe, accident & health and specialty casualty Miami, Singapore and Swiss offices and Lloyd’s Syndicate 2232 increase global reach and drive targeted growth |
 Agenda Executive Summary Operating Segments U.S. Insurance International Insurance Reinsurance Financial Highlights Conclusion Appendix 16 |
 Operating Results 2009 2010 2011 2012 2013 Underwriting Income $317 $207 $59 $97 $278 Operating Income $538 $398 $184 $203 $364 Net Income $607 $665 $275 $493 $418 Operating Return on Average Equity 20.0% 13.1% 6.0% 6.3% 10.6% Net Income Return on Average Equity 22.6% 21.9% 8.9% 15.3% 12.2% Combined Ratio 76.1% 84.9% 95.9% 94.5% 86.2% Cash Flow from Operations $668 $451 $548 $629 $114 Total Financial Statement Portfolio Return 7.9% 6.1% 2.0% 5.5% 2.6% Ending Diluted Book Value per Share $59.56 $74.29 $80.11 $92.59 $102.58 Growth in Diluted Book Value per Share 29.3% 24.7% 7.8% 15.6% 10.8% Allied World has reported consistently strong results despite a competitive landscape, financial turbulence and catastrophe activity 17 ($ in millions, except per share amounts) Financial Highlights |
 18 Expense Ratio Advantage Note: GAAP expense ratio *Peer average includes ACGL, AGII, AHL, AXS, ENH, HCC, MKL, NAVG, OB, PRA, RLI, THG and WRB. Source: SNL Financial, Company filings 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 A 4.2 point advantage compared to peers 22.5% 26.7% 30.2% 32.8% 30.1% 29.4% 30.2% 30.1% 30.4% 32.1% 33.6% 33.7% 34.2% 34.4% 2007 2008 2009 2010 2011 2012 2013 Allied World Peer Average* |
 19 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 Source: SNL Financial, Company filings Allied World Arch Argo Aspen Axis Endurance Hanover HCC Markel Navigators OneBeacon ProAssurance RLI W.R. Berkley (15%) (5%) 0% 5% 10% 15% 60.0% 65.0% 70.0% 75.0% 80.0% 85.0% 90.0% 95.0% 100.0% 105.0% 5 Year Average Combined Ratio (10%) |
 (1) Pro-forma including Darwin development since inception. (2) Case incurred loss ratios by year are not directly comparable to our financial statements as reinsurance case incurred losses shown above are on a treaty year basis. 20 Historical Loss Ratios Through December 2013 ($MM) (1) Strong Underwriting Results since Inception (2) |
 • Net reserves about 4.1% above mid-point of range at December 31, 2013 • $1.9 billion net favorable reserve development since inception • 71% of net reserves are IBNR Net Prior Year Reserve Releases* ($MM) 21 * Pro-forma including Darwin development since inception Prudent Reserving Philosophy December 31, 2013 Total: $4.5B Net Loss & LAE Reserve Mix at December 31, 2013 Case U.S. Insurance 11% IBNR International Insurance 25% Case International Insurance 8% IBNR Reinsurance 22% Case Reinsurance 10% IBNR U.S. Insurance 24% |
 Allied World – Investment Portfolio Breakout 22 Core Assets 74.6% Non-Core Assets 25.4% Total Investment Portfolio at December 31, 2013: $8,393M Cash & Cash Equivalents 8.1% U.S. Government Securities 16.3% U.S. Government Agencies 3.7% Non-U.S. Government Securities and Agencies 2.3% State, Municipalities and Political Subdivisions 2.8% Mortgage-Backed Securities 12.8% Corporate Securities 22.6% Asset-Backed Securities 6.0% Hedge Funds 6.1% Floating-rate Bank Loans 3.6% Private Equity 2.6% Non-agency High Yield 2.6% Predominantly AWFS 1.8% High Yield Loan Fund 0.4% Equities 8.3% |
 23 Investment Portfolio Return – Breakout and Peer Comparison • We have increased our allocation to investment strategies outside of the core fixed income portfolio • Portfolio was > 95% core fixed income in 2008 and has moved to a 75/25% core/non- core split at present • Returns from the non-core piece have had a disproportionately positive impact on the total investment return Composition of Allied World Total Investment Return 2013 Full-Year Total Return (1,2) Return from Fixed Income Strategy Return from Non-Core Strategy Barclays Customized Benchmark (3) (3) (2) (1) Full-Year total return from January 2013 – December 2013; NA indicates data not available at time of filing. Source: BlackRock, Company filings Blend of Barclays Aggregate benchmarks representative of the underlying sectors of our portfolio. 7.7% 6.1% 5.5% Peer Average =1.9% |
 Peer Comparisons – Net Income ROE Source: SNL Financial, Company filings 24 Five Year Average Quarterly Annualized Net Income ROE 2009 – 2013 Peer Average = 9.7% 15.6% 15.1% 14.0% 13.2% 11.2% 10.8% 10.4% 9.7% 9.6% 8.0% 6.9% 6.7% 5.8% 4.1% Allied World Arch RLI Pro Assurance W.R. Berkley HCC OneBeacon Axis Endurance Aspen Navigators Markel Hanover Argo |
 Agenda Executive Summary Operating Segments U.S. Insurance International Insurance Reinsurance Financial Highlights Conclusion Appendix 25 |
 Conclusion 26 Strong growth in underwriting income from niche businesses • Full-year 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 |
 Growth in book value per share calculated by taking change in book value per share from December 31, 2008 through December 31, 2013 adjusted for dividends. Diluted book value per share used when available. RLI not shown on chart (five year growth in book value per share of 97% with price to book value of 2.20X as of February 21, 2014) * Includes dividend of $0.50 per share declared in Q4 2013. Five Year Growth in Book Value per Share (through December 2013) vs. Price to Book Value @ February 21, 2014 27 Conclusion - Allied World is attractively valued given its demonstrated ability to grow book value |
 Agenda Executive Summary Operating Segments U.S. Insurance International Insurance Reinsurance Financial Highlights Conclusion Appendix 28 |
 Non-GAAP Financial Measures 29 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 accordanc 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 investment 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 30 – 32 for a reconciliation of non-GAAP measures used in this presentation to their most directly comparable U.S. GAAP measures. |
 30 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) Three Months Ended December 31, Year Ended December 31, 2013 2012 2013 2012 Net income (loss) $ 137,907 $ (41,147) $ 417,880 $ 493,007 Add after tax effect of: Net realized investment (gains) losses (64,027) (15,104) (61,867) (291,139) Foreign exchange loss 658 860 8,019 783 Operating income (loss) $ 74,538 $ (55,391) $ 364,032 $ 202,651 Weighted average common shares outstanding: Basic 33,604,985 35,097,043 34,154,905 36,057,145 Diluted 34,376,604 35,097,043 34,955,278 37,069,885 Basic per share data: Net income (loss) $ 4.10 $ (1.17) $ 12.23 $ 13.67 Add after tax effect of: Net realized investment (gains) losses (1.91) (0.43) (1.81) (8.07) Foreign exchange loss 0.02 0.02 0.23 0.02 Operating income (loss) $ 2.21 $ (1.58) $ 10.65 $ 5.62 Diluted per share data: Net income (loss) $ 4.01 $ (1.17) $ 11.95 $ 13.30 Add after tax effect of: Net realized investment (gains) losses (1.86) (0.43) (1.77) (7.85) Foreign exchange loss 0.02 0.02 0.23 0.02 Operating income (loss) $ 2.17 $ (1.58) $ 10.41 $ 5.47 |
 Non-GAAP Financial Measures - Reconciliations 31 ALLIED WORLD ASSURANCE COMPANY HOLDINGS, AG UNAUDITED ANNUALIZED RETURN ON SHAREHOLDERS' EQUITY RECONCILIATION (Expressed in thousands of United States dollars, except for percentage information) Three Months Ended December 31, Year Ended December 31, 2013 2012 2013 2012 Opening shareholders' equity $ 3,443,928 $ 3,435,786 $ 3,326,335 $ 3,149,022 Deduct: accumulated other comprehensive income — (1,385) — (14,484) Adjusted opening shareholders' equity 3,443,928 3,434,401 3,326,335 3,134,538 Closing shareholders' equity $ 3,519,826 $ 3,326,335 $ 3,519,826 $ 3,326,335 Deduct: accumulated other comprehensive income — — — — Adjusted closing shareholders' equity 3,519,826 3,326,335 3,519,826 3,326,335 Average shareholders' equity $ 3,481,877 $ 3,380,368 $ 3,423,081 $ 3,230,437 Net income (loss) available to shareholders $ 137,907 $ (41,147) $ 417,880 $ 493,007 Annualized net income (loss) available to shareholders 551,628 (164,588) 417,880 493,007 Annualized return on average shareholders' equity - net income (loss) available to shareholders 15.8% (4.9)% 12.2% 15.3% Operating income (loss) available to shareholders $ 74,538 $ (55,391) $ 364,032 $ 202,651 Annualized operating income (loss) available to shareholders 298,152 (221,564) 364,032 202,651 Annualized return on average shareholders' equity - operating income (loss) available to shareholders 8.6% (6.6)% 10.6% 6.3% |
 Non-GAAP Financial Measures - Reconciliations 32 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 December 31, December 31, 2013 2012 Price per share at period end $ 112.81 $ 78.80 Total shareholders' equity $ 3,519,826 $ 3,326,335 Basic common shares outstanding 33,417,882 34,797,781 Add: unvested restricted share units 47,899 135,123 Add: performance based equity awards 268,173 485,973 Add: employee share purchase plan 18,532 10,750 Add: dilutive options outstanding 976,104 1,224,607 Weighted average exercise price per share $ 48.22 $ 47.02 Deduct: options bought back via treasury method (417,229) (730,652) Common shares and common share equivalents outstanding 34,311,361 35,923,582 Basic book value per common share $ 105.33 $ 95.59 Diluted book value per common share $ 102.58 $ 92.59 |