Allied World Assurance 8-K Allied World Reports Solid Fourth Quarter Operating Results

Exhibit 99.1

FOR IMMEDIATE RELEASE

ALLIED WORLD REPORTS SOLID FOURTH QUARTER OPERATING RESULTS

PEMBROKE, BERMUDA, February 5, 2009 —Allied World Assurance Company Holdings, Ltd (NYSE: AWH) today reported net income of $19.9 million, or $0.39 per diluted share, for the fourth quarter of 2008 compared to net income of $123.0 million, or $2.01 per diluted share, for the fourth quarter of 2007. Net income for the year ended December 31, 2008 was $183.6 million, or $3.59 per diluted share, compared to net income of $469.2 million, or $7.53 per diluted share, for the year ended December 31, 2007.

The company reported record operating income of $141.1 million, or $2.80 per diluted share, for the fourth quarter of 2008 compared to operating income of $118.1 million, or $1.93 per diluted share, for the fourth quarter of 2007. Operating income for the year ended December 31, 2008 was $455.1 million, or $8.90 per diluted share, compared to operating income of $476.0 million, or $7.64 per diluted share, for the year ended December 31, 2007.

President and Chief Executive Officer Scott Carmilani commented, “Allied World has emerged from 2008 as an even stronger company despite it being a very difficult year for insurance companies and the financial sector as a whole. While not immune to the impact of the catastrophe losses for the year, we still managed to generate a very impressive 20.6% operating ROE for 2008 and ended the year with over $2.4 billion in shareholders’ equity, up 8% from year end 2007. In the fourth quarter, we achieved record operating income driven by strong investment income, favorable reserve development and a meaningful contribution from our recently acquired Darwin business.”

Mr. Carmilani continued, “We accomplished these strong results in a year when we made significant investments in our operating platforms and infrastructure, particularly in the United States. These actions combined with our strong capital have helped position us right where we want to be in the market at a time when we believe there are significant opportunities.”

Darwin Acquisition

Allied World completed its acquisition of Darwin Professional Underwriters, Inc. (“Darwin”) on October 20, 2008, and Darwin’s results for the period of October 20, 2008 through December 31, 2008 are included in Allied World’s consolidated results.

Underwriting Results

Gross premiums written were $310.9 million in the fourth quarter of 2008, a 19.5% increase compared to $260.3 million in the fourth quarter of 2007. Net premiums written were $226.5 million in the fourth quarter of 2008, a 19.6% increase compared to $189.4 million in the fourth quarter of 2007. These increases were primarily due to the inclusion of Darwin business and increased writings in our casualty segment by our U.S. offices. Net premiums earned in the fourth quarter of 2008 were $303.0 million, a 5.7% increase compared to $286.6 million in the fourth quarter of 2007.

Gross premiums written were $1,445.6 million for the year ended December 31, 2008, a 4.0% decrease compared to $1,505.5 million for the year ended December 31, 2007. Net premiums written were $1,107.2 million for the year ended December 31, 2008, a 4.0% decrease compared to $1,153.1 million for the year ended December 31, 2007. These decreases were primarily the result of the non-renewal of business that did not meet our underwriting requirements (which included inadequate pricing and/or policy or contract terms and conditions), increased competition and decreasing rates for renewal business in each of our operating segments. Net premiums earned were $1,116.9 million for the year ended December 31, 2008, a 3.7% decrease from net premiums earned of $1,159.9 million for the year ended December 31, 2007, primarily due to lower net premiums written in 2008.

The combined ratio was 76.1% in the fourth quarter of 2008 compared to 81.4% in the fourth quarter of 2007. The loss and loss expense ratio was 47.4% in the fourth quarter of 2008 compared to 58.2% in the fourth quarter of 2007. During the fourth quarter of 2008, the company recorded net favorable reserve development on prior loss years of $90.3 million, a benefit of 29.8 percentage points to the company’s loss and loss expense ratio for the quarter. Of this net favorable development, $15.6 million, $63.8 million and $10.9 million was recognized in our property, casualty and reinsurance segments, respectively. The combined ratio for the year ended December 31, 2008 was 84.2% compared to 81.3% for the year ended December 31, 2007. During the year ended December 31, 2008, the company recorded net favorable reserve development on prior loss years of $280.1 million, a benefit of 25.1 percentage points to the company’s loss and loss expense ratio for the year.

Absent prior year reserve adjustments, the loss and loss expense ratio related to the fourth quarter of 2008 was 77.2% compared to 70.8% for the fourth quarter of 2007. The increase in the current year’s loss and loss expense ratio was primarily due to $35.5 million in net upward reserve adjustments related to 2008 catastrophe events. This included $41.7 million in upward reserve adjustments related to Hurricanes Ike and Gustav, which were partially offset by $6.2 million in downward reserve adjustments related to other 2008 catastrophe events. Absent prior year reserve adjustments, the loss and loss expense ratio related to the year ended December 31, 2008 was 82.5% compared to 69.4% for the year ended December 31, 2007, primarily due to catastrophe losses in 2008.

The company’s expense ratio was 28.7% for the fourth quarter of 2008 compared to 23.2% for the fourth quarter of 2007. The expense ratio was 26.8% for the year ended December 31, 2008 compared to 22.5% for the year ended December 31, 2007. As part of our ongoing strategic initiatives, the company has significantly expanded its existing U.S. operations. Accordingly, excluding Darwin, the company’s staff count increased to 372 at December 31, 2008 from 300 at December 31, 2007, and the company also increased its expenditures for rent and related costs, professional fees and system improvements over the same period. Including Darwin, the company’s total staff count was 560 at December 31, 2008.

Investment Results

Net investment income in the fourth quarter of 2008 was $82.6 million, an increase of 9.8% from the $75.2 million of net investment income in the fourth quarter of 2007. For the year ended December 31, 2008, net investment income was $308.8 million, an increase of 3.6% over the $297.9 million of net investment income for the year ended December 31, 2007.

During the fourth quarter of 2008, the company recorded $125.4 million in net unrealized gains in accumulated other comprehensive income on its December 31, 2008 balance sheet and net realized investment losses of $120.0 million in its fourth quarter 2008 statement of operations. The net unrealized gains of $125.4 million were predominately due to a decline in interest rates during the quarter. The $120.0 million in net realized losses for the fourth quarter 2008 includes $38.2 million in losses from the mark-to-market of the company’s alternative investment portfolio and $100.6 million in losses from other-than-temporary impairments. Partially offsetting these losses for the fourth quarter of 2008, the company recorded $18.8 million in gains from the sales of securities.

Shareholders’ Equity

As of December 31, 2008, shareholders’ equity was $2.4 billion, an increase of 7.9%, compared to $2.2 billion reported as of December 31, 2007. The increase was primarily the result of net income for the year ended December 31, 2008 of $183.6 million.

The company’s annualized net income return on average shareholder’s equity for the quarter and year ended December 31, 2008 was 3.4% and 8.3%, respectively. The company’s annualized operating return on average shareholder’s equity for the quarter and year ended December 31, 2008 was 24.5% and 20.6%, respectively.

As of December 31, 2008, diluted book value per share was $46.05, an increase of 8.3%, compared to $42.53 as of December 31, 2007.

Investment Supplement

Allied World will be providing additional information on its investment portfolio as of December 31, 2008. This information will be available at the “Investor Relations” section of the company’s website at www.awac.com.

Financial Supplement

A financial supplement relating to the fourth quarter of 2008 will be available at the “Investor Relations” section of the company’s website at www.awac.com.

Conference Call

Allied World will host a conference call on Friday, February 6, 2009 at 8:30 a.m. (Eastern Time) to discuss its fourth quarter and year ended December 31, 2008 financial results. The public may access a live webcast of the conference call at the “Investor Relations” section of the company’s website at www.awac.com. In addition, the conference call can be accessed by dialing (800) 510-0178 (U.S. and Canada callers) or (617) 614-3450 (international callers) and entering the passcode 26882336 approximately ten minutes prior to the call.

Following the conclusion of the presentation, a replay of the call will be available through Friday, February 20, 2009 by dialing (888) 286-8010 (U.S. and Canada callers) or (617) 801-6888 (international callers) and entering the passcode 19916521. In addition, the webcast will remain available online through Friday, February 20, 2009 at www.awac.com.

Non-GAAP Financial Measures

In presenting the company’s results, management has included and discussed in this press release certain 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 (“GAAP”).

“Operating income” is an internal performance measure used by the company in the management of its operations and represents after-tax operational results excluding, as applicable, net realized investment gains or losses and foreign exchange gains or losses. The company excludes net realized investment gains or losses and net foreign exchange gains or losses from its calculation of operating income because the amount of these gains or losses is heavily influenced by, and fluctuates in part according to, the availability of market opportunities. The company believes these amounts are largely independent of its business and underwriting process and including them may distort the analysis of trends in its insurance and reinsurance operations. In addition to presenting net income determined in accordance with GAAP, the company believes that showing operating income enables investors, analysts, rating agencies and other users of its financial information to more easily analyze the company’s results of operations in a manner similar to how management analyzes the company’s underlying business performance. Operating income should not be viewed as a substitute for 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 a better measure of calculating shareholder returns than book value per share.

“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 risk premium 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 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.

Reconciliations of these financial measures to their most directly comparable GAAP measures are included in the attached tables.

About Allied World Assurance Company

Allied World Assurance Company Holdings, Ltd, through its subsidiaries, is a global provider of innovative property, casualty and specialty insurance and reinsurance solutions, offering superior client service through offices in Bermuda, the United States and Europe. Our insurance and reinsurance subsidiaries are rated A (Excellent) by A.M. Best Company. For further information on Allied World, please visit our website at www.awac.com.

Cautionary Statement Regarding Forward-Looking Statements

Any forward-looking statements made in this press release 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 ability to recognize the benefits of the Darwin acquisition; pricing and policy term trends; increased competition; the impact of acts of terrorism and acts of war; greater frequency or severity of unpredictable catastrophic events; investigations of market practices and related settlement terms; negative rating agency actions; the adequacy of our loss reserves; 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 including those related to the ongoing financial crisis; 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, LTD
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Expressed in thousands of United States dollars, except share and per share amounts)

	Quarter Ended December 31,						Year Ended December 31,
	2008			2007			2008			2007
Revenues:
Gross premiums written	$	310,945		$	260,301		$	1,445,584		$	1,505,509
Premiums ceded		(84,442	)		(70,919	)		(338,356	)		(352,399	)
Net premiums written		226,503			189,382			1,107,228			1,153,110
Change in unearned premiums		76,481			97,216			9,677			6,832
Net premiums earned		302,984			286,598			1,116,905			1,159,942
Net investment income		82,583			75,214			308,775			297,932
Net realized investment (losses)/gains		(120,047	)		4,544			(272,851	)		(7,617	)
Other income		746			—			746			—
Total revenue		266,266			366,356			1,153,575			1,450,257
Expenses:
Net losses and loss expenses		143,531			166,874			641,122			682,340
Acquisition costs		30,849			28,693			112,569			118,959
General and administrative expenses		56,115			37,956			186,560			141,641
Interest expense		10,205			9,511			38,743			37,848
Foreign exchange loss/(gain)		1,230			(405	)		(1,421	)		(817	)
Total expenses		241,930			242,629			977,573			979,971
Income before income taxes		24,336			123,727			176,002			470,286
Income tax expense/(recovery)		4,484			712			(7,633	)		1,104
NET INCOME	$	19,852		$	123,015		$	183,635		$	469,182
PER SHARE DATA:
Basic earnings per share	$	0.40		$	2.11		$	3.75		$	7.84
Diluted earnings per share	$	0.39		$	2.01		$	3.59		$	7.53
Weighted average common shares outstanding		49,028,249			58,247,755			48,936,912			59,846,987
Weighted average common shares and common share equivalents outstanding		50,366,814			61,133,206			51,147,215			62,331,165
Dividends declared per share	$	0.18		$	0.18		$	0.72		$	0.63

ALLIED WORLD ASSURANCE COMPANY HOLDINGS, LTD
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(Expressed in thousands of United States dollars, except share and per share amounts)

	As of		As of
	December 31,		December 31,
	2008		2007
ASSETS:
Fixed maturity investments available for sale, at fair value (amortized cost: 2008: $5,872,031; 2007: $5,595,943)	$	6,032,029	$	5,707,143
Other invested assets available for sale, at fair value (cost: 2008: $89,229; 2007: $291,458)		55,199		322,144
Equity securities, at fair value		21,329		—
Other invested assets, at fair value		48,573		—
Total investments		6,157,130		6,029,287
Cash and cash equivalents		655,828		202,582
Restricted cash		50,439		67,886
Securities lending collateral		171,026		147,241
Insurance balances receivable		347,941		304,499
Prepaid reinsurance		192,582		163,836
Reinsurance recoverable		888,314		682,765
Accrued investment income		50,671		55,763
Deferred acquisition costs		135,780		108,295
Goodwill		268,532		—
Intangible assets		71,410		3,920
Balances receivable on sale of investments		12,371		84,998
Net deferred tax assets		22,452		4,881
Other assets		47,603		43,155
Total assets	$	9,072,079	$	7,899,108
LIABILITIES:
Reserve for losses and loss expenses	$	4,576,828	$	3,919,772
Unearned premiums		930,358		811,083
Unearned ceding commissions		49,599		28,831
Reinsurance balances payable		95,129		67,175
Securities lending payable		177,010		147,241
Balances due on purchase of investments		—		141,462
Syndicated loan		243,750		—
Senior notes		498,796		498,682
Accounts payable and accrued liabilities		83,747		45,020
Total liabilities	$	6,655,217	$	5,659,266
SHAREHOLDERS’ EQUITY:
Common shares, par value $0.03 per share: issued and outstanding 2008: 49,036,159 ; 2007: 48,741,927 shares	$	1,471	$	1,462
Additional paid-in capital		1,314,785		1,281,832
Retained earnings		994,974		820,334
Accumulated other comprehensive income, net of tax		105,632		136,214
Total shareholders’ equity	$	2,416,862	$	2,239,842
Total liabilities and shareholders’ equity	$	9,072,079	$	7,899,108

ALLIED WORLD ASSURANCE COMPANY HOLDINGS, LTD
UNAUDITED CONSOLIDATED SEGMENT DATA
(Expressed in thousands of United States dollars, except for ratio information)

Quarter Ended December 31, 2008	Property			Casualty			Reinsurance			Total
Gross premiums written	$	52,020		$	248,676		$	10,249		$	310,945
Net premiums written		33,541			182,833			10,129			226,503
Net premiums earned		43,126			158,368			101,490			302,984
Other income		—			746			—			746
Net losses and loss expenses		(33,661	)		(48,047	)		(61,823	)		(143,531	)
Acquisition costs		(1,941	)		(8,947	)		(19,961	)		(30,849	)
General and administrative expenses		(8,593	)		(35,875	)		(11,647	)		(56,115	)
Underwriting (loss) income		(1,069	)		66,245			8,059			73,235
Net investment income											82,583
Net realized investment losses											(120,047	)
Interest expense											(10,205	)
Foreign exchange loss											(1,230	)
Income before income taxes										$	24,336
GAAP Ratios:
Loss and loss expense ratio		78.1	%		30.3	%		60.9	%		47.4	%
Acquisition cost ratio		4.5	%		5.6	%		19.7	%		10.2	%
General and administrative expense ratio		19.9	%		22.7	%		11.5	%		18.5	%
Combined ratio		102.5	%		58.6	%		92.1	%		76.1	%

Quarter Ended December 31, 2007	Property			Casualty			Reinsurance			Total
Gross premiums written	$	72,497		$	142,941		$	44,863		$	260,301
Net premiums written		38,941			105,620			44,821			189,382
Net premiums earned		43,403			112,422			130,773			286,598
Net losses and loss expenses		(35,377	)		(53,171	)		(78,326	)		(166,874	)
Acquisition costs		(260	)		(3,271	)		(25,162	)		(28,693	)
General and administrative expenses		(9,844	)		(18,439	)		(9,673	)		(37,956	)
Underwriting (loss) income		(2,078	)		37,541			17,612			53,075
Net investment income											75,214
Net realized investment gains											4,544
Interest expense											(9,511	)
Foreign exchange gain											405
Income before income taxes										$	123,727
GAAP Ratios:
Loss and loss expense ratio		81.5	%		47.3	%		59.9	%		58.2	%
Acquisition cost ratio		0.6	%		2.9	%		19.2	%		10.0	%
General and administrative expense ratio		22.7	%		16.4	%		7.4	%		13.2	%
Combined ratio		104.8	%		66.6	%		86.5	%		81.4	%

ALLIED WORLD ASSURANCE COMPANY HOLDINGS, LTD
UNAUDITED CONSOLIDATED SEGMENT DATA
(Expressed in thousands of United States dollars, except for ratio information)

Year Ended December 31, 2008	Property			Casualty			Reinsurance			Total
Gross premiums written	$	327,490		$	687,954		$	430,140		$	1,445,584
Net premiums written		169,887			508,960			428,381			1,107,228
Net premiums earned		173,790			478,578			464,537			1,116,905
Other income		—			746			—			746
Net losses and loss expenses		(182,244	)		(209,739	)		(249,139	)		(641,122	)
Acquisition costs		(1,948	)		(19,658	)		(90,963	)		(112,569	)
General and administrative expenses		(39,290	)		(103,720	)		(43,550	)		(186,560	)
Underwriting (loss) income		(49,692	)		146,207			80,885			177,400
Net investment income											308,775
Net realized investment losses											(272,851	)
Interest expense											(38,743	)
Foreign exchange gain											1,421
Income before income taxes										$	176,002
GAAP Ratios:
Loss and loss expense ratio		104.9	%		43.8	%		53.6	%		57.4	%
Acquisition cost ratio		1.1	%		4.1	%		19.6	%		10.1	%
General and administrative expense ratio		22.6	%		21.7	%		9.4	%		16.7	%
Combined ratio		128.6	%		69.6	%		82.6	%		84.2	%

Year Ended December 31, 2007	Property			Casualty			Reinsurance			Total
Gross premiums written	$	391,017		$	578,433		$	536,059		$	1,505,509
Net premiums written		176,420			440,802			535,888			1,153,110
Net premiums earned		180,458			475,523			503,961			1,159,942
Net losses and loss expenses		(105,662	)		(275,815	)		(300,863	)		(682,340	)
Acquisition costs		114			(17,269	)		(101,804	)		(118,959	)
General and administrative expenses		(34,185	)		(68,333	)		(39,123	)		(141,641	)
Underwriting income		40,725			114,106			62,171			217,002
Net investment income											297,932
Net realized investment losses											(7,617	)
Interest expense											(37,848	)
Foreign exchange gain											817
Income before income taxes										$	470,286
GAAP Ratios:
Loss and loss expense ratio		58.6	%		58.0	%		59.7	%		58.8	%
Acquisition cost ratio		(0.1	%)		3.6	%		20.2	%		10.3	%
General and administrative expense ratio		18.9	%		14.4	%		7.8	%		12.2	%
Combined ratio		77.4	%		76.0	%		87.7	%		81.3	%

ALLIED WORLD ASSURANCE COMPANY HOLDINGS, LTD
UNAUDITED OPERATING INCOME RECONCILIATION
(Expressed in thousands of United States dollars, except share and per share amounts)

	Quarter Ended December 31,					Year Ended December 31,
	2008		2007			2008			2007
Net income	$	19,852	$	123,015		$	183,635		$	469,182
Net realized investment losses/(gain)		120,047		(4,544	)		272,851			7,617
Foreign exchange loss/(gain)		1,230		(405	)		(1,421	)		(817	)
Operating income	$	141,129	$	118,066		$	455,065		$	475,982
Weighted average common shares outstanding:
Basic		49,028,249		58,247,755			48,936,912			59,846,987
Diluted		50,366,814		61,133,206			51,147,215			62,331,165
Basic per share data:
Net income	$	0.40	$	2.11		$	3.75		$	7.84
Net realized investment losses/(gain)		2.45		(0.07	)		5.58			0.12
Foreign exchange loss/(gain)		0.03		(0.01	)		(0.03	)		(0.01	)
Operating income	$	2.88	$	2.03		$	9.30		$	7.95
Diluted per share data
Net income	$	0.39	$	2.01		$	3.59		$	7.53
Net realized investment losses/(gain)		2.39		(0.07	)		5.33			0.12
Foreign exchange loss/(gain)		0.02		(0.01	)		(0.02	)		(0.01	)
Operating income	$	2.80	$	1.93		$	8.90		$	7.64

ALLIED WORLD ASSURANCE COMPANY HOLDINGS, LTD
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,
	2008			2007
Price per share at period end	$	40.60		$	50.17
Total shareholders’ equity		2,416,862			2,239,842
Basic common shares outstanding		49,036,159			48,741,927
Add: unvested restricted share units		971,907			820,890
Add: Performance based equity awards		1,345,903			886,251
Add: dilutive options/warrants outstanding		6,371,151			6,723,875
Weighted average exercise price per share	$	33.38		$	33.62
Deduct: options bought back via treasury method		(5,237,965	)		(4,506,182	)
Common shares and common share equivalents outstanding		52,487,155			52,666,761
Basic book value per common share	$	49.29		$	45.95
Diluted book value per common share	$	46.05		$	42.53

ALLIED WORLD ASSURANCE COMPANY HOLDINGS, LTD
UNAUDITED ANNUALIZED RETURN ON SHAREHOLDERS’ EQUITY RECONCILIATION
(Expressed in thousands of United States dollars, except for percentage information)

	Quarter Ended December 31,						Year Ended December 31,
	2008			2007			2008			2007
Opening shareholders’ equity	$	2,272,828		$	2,612,775		$	2,239,842		$	2,220,084
Add/deduct: accumulated other comprehensive loss/(income)		19,775			(62,917	)		(136,214	)		(6,464	)
Adjusted opening shareholders’ equity		2,292,603			2,549,858			2,103,628			2,213,620
Closing shareholders’ equity	$	2,416,862		$	2,239,842		$	2,416,862		$	2,239,842
Deduct: accumulated other comprehensive income		(105,632	)		(136,214	)		(105,632	)		(136,214	)
Adjusted closing shareholders’ equity		2,311,230			2,103,628			2,311,230			2,103,628
Average shareholders’ equity	$	2,301,917		$	2,326,743		$	2,207,429		$	2,158,624
Net income available to shareholders	$	19,852		$	123,015		$	183,635		$	469,182
Annualized net income available to shareholders		79,408			492,060			183,635			469,182
Annualized return on average shareholders’ equity — net income available to shareholders		3.4	%		21.1	%		8.3	%		21.7	%
Operating income available to shareholders	$	141,129		$	118,066		$	455,065		$	475,982
Annualized operating income available to shareholders		564,516			472,264			455,065			475,982
Annualized return on average shareholders’ equity - operating income available to shareholders		24.5	%		20.3	%		20.6	%		22.1	%

SOURCE Allied World Assurance Company Holdings, Ltd

Media:
Faye Cook
AVP, Marketing & Communications
+1-441-278-5406
faye.cook@awac.com

Investors:
Keith J. Lennox
Investor Relations Officer
+1-646-794-0750
keith.lennox@awac.com

Website: www.awac.com