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

Exhibit 99.2

ALLIED WORLD ASSURANCE COMPANY HOLDINGS, LTD
4^thQuarter and Year Ended December 31, 2008

Investor Contact:
Keith Lennox
Phone: (646) 794-0750
email: keith.lennox@awac.com This report is for informational purposes only. It should be read in conjunction with documents filed by Allied World Assurance Company Holdings, Ltd with the U.S. Securities and Exchange Commission.

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 ability to recognize the benefits of the Darwin Professional Underwriters, Inc. 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
FINANCIAL SUPPLEMENT TABLE OF CONTENTS

	Page
Basis of Presentation		4
I.Financial Highlights
— Consolidated Financial Highlights		5
II.Consolidated Results
— Consolidated Statements of Operations — Consecutive Quarters		6
— Consolidated Statements of Operations — Year to Date		7
— Consolidated Premium Distribution Analysis — Current Quarter		8
— Consolidated Premium Distribution Analysis — Year to Date		9
III.Segment Results
— Consolidated Segment Results — Current Quarter		10
— Consolidated Segment Results — Prior Year Quarter		11
— Consolidated Segment Results — Year to Date		12
— Consolidated Segment Results — Prior Year to Date		13
IV.Balance Sheet Details
— Consolidated Balance Sheets		14
— Consolidated Investment Portfolio		15
— Consolidated Investment Portfolio — Additional Detail		16
— Reserves for Losses and Loss Expenses		17
— Capital Structure and Leverage Ratios		18
V.Other
— Operating Income Reconciliation and Basic and Diluted Earnings per Share — Consecutive Quarters		19
— Operating Income Reconciliation and Basic and Diluted Earnings per Share — Year to Date		20
— Return on Average Shareholders’ Equity and Reconciliation of Average Shareholders’ Equity — Consecutive Quarters		21
— Return on Average Shareholders’ Equity and Reconciliation of Average Shareholders’ Equity — Year to Date		22
— Diluted Book Value per Share		23
— Annualized Investment Book Yield		24
— Regulation G		26

ALLIED WORLD ASSURANCE COMPANY HOLDINGS, LTD
BASIS OF PRESENTATION

DEFINITIONS AND PRESENTATION

• All financial information contained herein is unaudited.

• Unless otherwise noted, all data is in thousands of U.S. dollars, except for share, per share, percentage and ratio information.

• Allied World Assurance Company Holdings, Ltd, along with others in the industry, use underwriting ratios as measures of performance. The loss and loss expense ratio is calculated by dividing net losses and loss expenses by net premiums earned. The acquisition cost ratio is calculated by dividing acquisition costs by net premiums earned. The general and administrative expense ratio is calculated by dividing general and administrative expenses by net premiums earned. The expense ratio is calculated by combining the acquisition cost ratio and the general and administrative expense ratio. The combined ratio is calculated by combining the loss and loss expense ratio, the acquisition cost ratio and the general and administrative expense ratio.These ratios are relative measurements that describe for every $100 of net premiums earned, the cost of losses and expenses, respectively. The combined ratio presents the total cost per $100 of earned premium. A combined ratio below 100% demonstrates underwriting profit; a combined ratio above 100% demonstrates underwriting loss.

• In presenting the company’s results, management has included and discussed certain “non-GAAP” financial measures, as such term is defined in Regulation G promulgated by the SEC. 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”). The reconciliation of such non-GAAP financial measures to their respective most directly comparable GAAP financial measures in accordance with Regulation G is included in this financial supplement. See page 26 for further details.

Page 4

ALLIED WORLD ASSURANCE COMPANY HOLDINGS, LTD
CONSOLIDATED FINANCIAL HIGHLIGHTS

		THREE MONTHS ENDED						YEAR ENDED						Previous			Previous
		DECEMBER 31,						DECEMBER 31,						Quarter			Year to Date
		2008			2007			2008			2007			Change			Change
HIGHLIGHTS	Gross premiums written	$	310,945		$	260,301		$	1,445,584		$	1,505,509			19.5	%		(4.0	%)
	Net premiums written		226,503			189,382			1,107,228			1,153,110			19.6	%		(4.0	%)
	Net premiums earned		302,984			286,598			1,116,905			1,159,942			5.7	%		(3.7	%)
	Net investment income		82,583			75,214			308,775			297,932			9.8	%		3.6	%
	Net income		19,852			123,015			183,635			469,182			(83.9	%)		(60.9	%)
	Operating income		141,129			118,066			455,065			475,982			19.5	%		(4.4	%)
	Total investments and cash & cash equivalents		6,863,397			6,299,755			6,863,397			6,299,755			8.9	%		8.9	%
	Total assets		9,072,079			7,899,108			9,072,079			7,899,108			14.8	%		14.8	%
	Total shareholders’ equity		2,416,862			2,239,842			2,416,862			2,239,842			7.9	%		7.9	%
	Cash flows from operating activities		147,069			142,157			656,943			760,968			3.5	%		(13.7	%)
PER SHARE AND SHARE DATA	Basic earnings per share
	Net income	$	0.40		$	2.11		$	3.75		$	7.84			(81.0	%)		(51.8	%)
	Operating income	$	2.88		$	2.03		$	9.30		$	7.95			41.9	%		18.0	%
	Diluted earnings per share
	Net income	$	0.39		$	2.01		$	3.59		$	7.53			(80.6	%)		(51.9	%)
	Operating income	$	2.80		$	1.93		$	8.90		$	7.64			45.1	%		17.3	%
	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
	Book value	$	49.29		$	45.95		$	49.29		$	45.95			7.3	%		7.3	%
	Diluted book value	$	46.05		$	42.53		$	46.05		$	42.53			8.3	%		8.3	%
FINANCIAL RATIOS	Return on average equity (ROAE), net income		3.4	%		21.1	%		8.3	%		21.7	%	(17.7		) pts	(13.4		) pts
	ROAE, operating income		24.5	%		20.3	%		20.6	%		22.1	%	4.2		pts	(1.5		) pts
	Annualized investment book yield		4.6	%		4.8	%		4.7	%		4.9	%	(0.2		) pts	(0.2		) pts
	Loss and loss expense ratio		47.4	%		58.2	%		57.4	%		58.8	%	(10.8		) pts	(1.4		) pts
	Acquisition cost ratio		10.2	%		10.0	%		10.1	%		10.3	%	0.2		pts	(0.2		) pts
	General and administrative expense ratio		18.5	%		13.2	%		16.7	%		12.2	%	5.3		pts	4.5		pts
	Expense ratio		28.7	%		23.2	%		26.8	%		22.5	%	5.5		pts	4.3		pts
	Combined ratio		76.1	%		81.4	%		84.2	%		81.3	%	(5.3		) pts	2.9		pts

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ALLIED WORLD ASSURANCE COMPANY HOLDINGS, LTD
CONSOLIDATED STATEMENTS OF OPERATIONS — CONSECUTIVE QUARTERS

	THREE MONTHS ENDED			THREE MONTHS ENDED			THREE MONTHS ENDED			THREE MONTHS ENDED			THREE MONTHS ENDED
	DECEMBER 31, 2008			SEPTEMBER 30, 2008			JUNE 30, 2008			MARCH 31, 2008			DECEMBER 31, 2007
Revenues
Gross premiums written	$	310,945		$	290,981		$	446,784		$	396,874		$	260,301
Net premiums written	$	226,503		$	233,903		$	320,250		$	326,572		$	189,382
Net premiums earned	$	302,984		$	271,973		$	268,876		$	273,072		$	286,598
Net investment income		82,583			76,916			72,345			76,931			75,214
Net realized investment (losses)/gains		(120,047	)		(151,876	)		(4,393	)		3,465			4,544
Other income		746			—			—			—			—
Total revenues	$	266,266		$	197,013		$	336,828		$	353,468		$	366,356
Expenses
Net losses and loss expenses:
Current year	$	233,789		$	272,958		$	217,859		$	196,611		$	202,873
Prior years		(90,258	)		(96,948	)		(39,775	)		(53,114	)		(35,999	)
Total net losses and loss expenses	$	143,531		$	176,010		$	178,084		$	143,497		$	166,874
Acquisition costs		30,849			28,615			26,265			26,840			28,693
General and administrative expenses		56,115			40,794			46,380			43,271			37,956
Interest expense		10,205			9,515			9,513			9,510			9,511
Foreign exchange loss/(gain)		1,230			(2,728	)		(399	)		476			(405	)
Total expenses	$	241,930		$	252,206		$	259,843		$	223,594		$	242,629
Income/(loss) before income taxes	$	24,336		$	(55,193	)	$	76,985		$	129,874		$	123,727
Income tax expense/(recovery)		4,484			(8,826	)		(2,220	)		(1,071	)		712
Net income/(loss)	$	19,852		$	(46,367	)	$	79,205		$	130,945		$	123,015
GAAP Ratios
Loss and loss expense ratio		47.4	%		64.7	%		66.2	%		52.5	%		58.2	%
Acquisition cost ratio		10.2	%		10.5	%		9.8	%		9.8	%		10.0	%
General and administrative expense ratio		18.5	%		15.0	%		17.2	%		15.9	%		13.2	%
Expense ratio		28.7	%		25.5	%		27.0	%		25.7	%		23.2	%
Combined ratio		76.1	%		90.2	%		93.2	%		78.2	%		81.4	%
Per Share Data
Basic earnings per share
Net income/(loss)	$	0.40		$	(0.95	)	$	1.62		$	2.68		$	2.11
Operating income	$	2.88		$	2.09		$	1.70		$	2.62		$	2.03
Diluted earnings per share
Net income/(loss)	$	0.39		$	(0.95	)	$	1.56		$	2.55		$	2.01
Operating income	$	2.80		$	2.03		$	1.64		$	2.49		$	1.93

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ALLIED WORLD ASSURANCE COMPANY HOLDINGS, LTD
CONSOLIDATED STATEMENTS OF OPERATIONS — YEAR TO DATE

	YEAR ENDED			YEAR ENDED
	DECEMBER 31, 2008			DECEMBER 31, 2007
Revenues
Gross premiums written	$	1,445,584		$	1,505,509
Net premiums written		1,107,228			1,153,110
Net premiums earned	$	1,116,905		$	1,159,942
Net investment income		308,775			297,932
Net realized investment losses		(272,851	)		(7,617	)
Other income		746			—
Total revenues	$	1,153,575		$	1,450,257
Expenses
Net losses and loss expenses:
Current year	$	921,217		$	805,417
Prior years		(280,095	)		(123,077	)
Total net losses and loss expenses		641,122			682,340
Acquisition costs		112,569			118,959
General and administrative expenses		186,560			141,641
Interest expense		38,743			37,848
Foreign exchange gain		(1,421	)		(817	)
Total expenses	$	977,573		$	979,971
Income before income taxes	$	176,002		$	470,286
Income tax (recovery)/ expense		(7,633	)		1,104
Net income	$	183,635		$	469,182
GAAP Ratios
Loss and loss expense ratio		57.4	%		58.8	%
Acquisition cost ratio		10.1	%		10.3	%
General and administrative expense ratio		16.7	%		12.2	%
Expense ratio		26.8	%		22.5	%
Combined ratio		84.2	%		81.3	%
Per Share Data
Basic earnings per share
Net income	$	3.75		$	7.84
Operating income	$	9.30		$	7.95
Diluted earnings per share
Net income	$	3.59		$	7.53
Operating income	$	8.90		$	7.64

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ALLIED WORLD ASSURANCE COMPANY HOLDINGS, LTD
CONSOLIDATED PREMIUM DISTRIBUTION ANALYSIS — CURRENT QUARTER

* Includes gross premiums written of $68,938 from Darwin

* Includes gross premiums written of $68,938 from Darwin

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ALLIED WORLD ASSURANCE COMPANY HOLDINGS, LTD
CONSOLIDATED PREMIUM DISTRIBUTION ANALYSIS — YEAR TO DATE

* Includes gross premiums written of $68,938 from Darwin

* Includes gross premiums written of $68,938 from Darwin

Page 9

ALLIED WORLD ASSURANCE COMPANY HOLDINGS, LTD
CONSOLIDATED SEGMENT RESULTS
FOR THE THREE MONTHS ENDED DECEMBER 31, 2008

										CONSOLIDATED
	PROPERTY			CASUALTY			REINSURANCE			TOTALS
Revenues
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
Total revenues	$	43,126		$	159,114		$	101,490		$	303,730
Expenses
Net losses and loss expenses:
Current year	$	49,233		$	111,828		$	72,728		$	233,789
Prior years		(15,572	)		(63,781	)		(10,905	)		(90,258	)
Total 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
Total expenses	$	44,195		$	92,869		$	93,431		$	230,495
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	%
Expense ratio		24.4	%		28.3	%		31.2	%		28.7	%
Combined ratio		102.5	%		58.6	%		92.1	%		76.1	%

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ALLIED WORLD ASSURANCE COMPANY HOLDINGS, LTD
CONSOLIDATED SEGMENT RESULTS
FOR THE THREE MONTHS ENDED DECEMBER 31, 2007

										CONSOLIDATED
	PROPERTY			CASUALTY			REINSURANCE			TOTALS
Revenues
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
Total revenues	$	43,403		$	112,422		$	130,773		$	286,598
Expenses
Net losses and loss expenses:
Current year	$	43,458		$	81,675		$	77,740		$	202,873
Prior years		(8,081	)		(28,504	)		586			(35,999	)
Total 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
Total expenses	$	45,481		$	74,881		$	113,161		$	233,523
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	%
Expense ratio		23.3	%		19.3	%		26.6	%		23.2	%
Combined ratio		104.8	%		66.6	%		86.5	%		81.4	%

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ALLIED WORLD ASSURANCE COMPANY HOLDINGS, LTD
CONSOLIDATED SEGMENT RESULTS
FOR THE YEAR ENDED DECEMBER 31, 2008

										CONSOLIDATED
	PROPERTY			CASUALTY			REINSURANCE			TOTALS
Revenues
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
Total revenues	$	173,790		$	479,324		$	464,537		$	1,117,651
Expenses
Net losses and loss expenses:
Current year	$	243,458		$	353,560		$	324,199		$	921,217
Prior years		(61,214	)		(143,821	)		(75,060	)		(280,095	)
Total 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
Total expenses	$	223,482		$	333,117		$	383,652		$	940,251
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	%
Expense ratio		23.7	%		25.8	%		29.0	%		26.8	%
Combined ratio		128.6	%		69.6	%		82.6	%		84.2	%

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ALLIED WORLD ASSURANCE COMPANY HOLDINGS, LTD
CONSOLIDATED SEGMENT RESULTS
FOR THE YEAR ENDED DECEMBER 31, 2007

										CONSOLIDATED
	PROPERTY			CASUALTY			REINSURANCE			TOTALS
Revenues
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
Total revenues	$	180,458		$	475,523		$	503,961		$	1,159,942
Expenses
Net losses and loss expenses:
Current year	$	151,039		$	346,429		$	307,949		$	805,417
Prior years		(45,377	)		(70,614	)		(7,086	)		(123,077	)
Total 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
Total expenses	$	139,733		$	361,417		$	441,790		$	942,940
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	%
Expense ratio		18.8	%		18.0	%		28.0	%		22.5	%
Combined ratio		77.4	%		76.0	%		87.7	%		81.3	%

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ALLIED WORLD ASSURANCE COMPANY HOLDINGS, LTD
CONSOLIDATED BALANCE SHEETS

	DECEMBER 31, 2008		DECEMBER 31, 2007
ASSETS
Fixed maturity investments available for sale, at fair value (amortized cost: 2008: $5,8772,031; 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 unrealized gains on investments, 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
Book value per share	$	49.29	$	45.95
Diluted book value per share		46.05		42.53

Page 14

ALLIED WORLD ASSURANCE COMPANY HOLDINGS, LTD
CONSOLIDATED INVESTMENT PORTFOLIO

	DECEMBER 31, 2008					SEPTEMBER 30, 2008					JUNE 30, 2008					MARCH 31, 2008					DECEMBER 31, 2007
	FAIR MARKET					FAIR MARKET					FAIR MARKET					FAIR MARKET					FAIR MARKET
	VALUE					VALUE					VALUE					VALUE					VALUE
MARKET VALUE
Fixed maturities available for sale	$	6,032,029		98.0	%	$	5,433,260		95.8	%	$	5,733,523		95.5	%	$	5,218,726		95.1	%	$	5,707,143		94.7	%
Other invested assets available for sale		55,199		0.9	%		71,528		1.2	%		77,444		1.3	%		77,099		1.4	%		322,144		5.3	%
Equity securities		21,329		0.3	%		—		0.0	%
Other invested assets		48,573		0.8	%		167,674		3.0	%		192,661		3.2	%		191,195		3.5	%		—		0.0	%
Total	$	6,157,130		100.0	%	$	5,672,462		100.0	%	$	6,003,628		100.0	%	$	5,487,020		100.0	%	$	6,029,287		100.0	%
ASSET ALLOCATION BY MARKET VALUE
U.S. government and agencies	$	1,770,235		25.8	%	$	1,822,516		28.2	%	$	2,090,510		32.0	%	$	1,817,827		28.4	%	$	2,053,224		32.6	%
Non-U.S. government securities		280,156		4.1	%		128,381		2.0	%		131,325		2.0	%		127,561		2.0	%		118,843		1.9	%
Corporate securities		1,361,970		19.8	%		1,248,723		19.3	%		1,362,001		20.9	%		1,142,447		17.8	%		1,252,617		19.9	%
State, municipalities and political subdivisions		369,619		5.4	%		56,964		0.9	%		63,409		1.0	%		—		0.0	%		—		0.0	%
Mortgage-backed securities		2,089,937		30.5	%		2,069,074		32.0	%		1,962,144		30.1	%		1,988,016		31.1	%		2,117,539		33.6	%
Asset-backed securities		160,112		2.3	%		107,602		1.6	%		124,134		1.9	%		142,875		2.2	%		164,920		2.6	%
Fixed income sub-total		6,032,029		87.9	%		5,433,260		84.0	%		5,733,523		87.8	%		5,218,726		81.5	%		5,707,143		90.6	%
Global high-yield bond fund		55,199		0.8	%		71,528		1.1	%		77,444		1.2	%		75,939		1.2	%		79,549		1.3	%
Hedge funds		48,573		0.7	%		167,674		2.6	%		192,661		3.0	%		191,195		3.0	%		241,435		3.8	%
Equity securities		21,329		0.3	%		—		0.0	%		—		0.0	%		—		0.0	%		—		0.0	%
Other invested asset		—		0.0	%		—		0.0	%		—		0.0	%		1,160		0.0	%		1,160		0.0	%
Cash & cash equivalents		706,267		10.3	%		791,934		12.3	%		524,425		8.0	%		914,386		14.3	%		270,468		4.3	%
Total	$	6,863,397		100.0	%	$	6,464,396		100.0	%	$	6,528,053		100.0	%	$	6,401,406		100.0	%	$	6,299,755		100.0	%
CREDIT QUALITY BY MARKET VALUE
U.S. government and agencies	$	1,770,235		29.3	%	$	1,822,516		33.5	%	$	2,090,510		36.5	%	$	1,817,826		34.8	%	$	2,053,224		36.0	%
AAA/Aaa		3,244,639		53.8	%		2,568,888		47.3	%		2,472,468		43.1	%		2,480,380		47.5	%		2,655,246		46.5	%
AA/Aa		166,244		2.8	%		361,887		6.6	%		482,125		8.4	%		379,798		7.3	%		411,796		7.2	%
A/A		685,461		11.4	%		524,584		9.7	%		587,466		10.2	%		462,182		8.9	%		519,336		9.1	%
BBB/Baa		156,132		2.6	%		155,379		2.9	%		100,954		1.8	%		78,540		1.5	%		67,541		1.2	%
BB		8,350		0.1	%		—		0.0	%		—		0.0	%							—		0.0	%
B/B		969		0.0	%		6		0.0	%		—		0.0	%		—		0.0	%		—		0.0	%
Total	$	6,032,029		100.0	%	$	5,433,260		100.0	%	$	5,733,523		100.0	%	$	5,218,726		100.0	%	$	5,707,143		100.0	%
																��
STATISTICS
Annualized book yield, year to date		4.7	%				4.8	%				4.5	%				4.7	%				4.9	%
Duration	3.3 years					3.4 years					3.4 years					3.0 years					3.1 years
Average credit quality (S&P)	AA+					AA+					AA+					AA					AA

Page 15

ALLIED WORLD ASSURANCE COMPANY HOLDINGS, LTD
INVESTMENT PORTFOLIO — ADDITIONAL DETAIL

December 31, 2008 Fair Market Value

	December 31, 2008		Average	Portfolio
	Fair Market Value		Rating	Percentage
Cash & cash equivalents	$	706,267	AAA		10.3	%
U.S. government securities		817,769	AAA		11.9	%
U.S. government agencies		952,466	AAA		13.9	%
Non-U.S. government securities		280,156	AAA		4.1	%
Mortgage-backed securities:
Agency MBS		1,384,205	AAA		20.2	%
Non-agency RMBS		230,523	AAA		3.4	%
CMBS		475,209	AAA		6.9	%
Total mortgage-backed securities		2,089,937	AAA		30.5	%
Corporate securities:
Financials		994,720	AA-		14.5	%
Industrials		295,428	A-		4.3	%
Utilities		71,822	BBB+		1.0	%
Total corporate securities		1,361,970			19.8	%
Asset-backed securities
Credit cards		66,006	AAA		1.0	%
Auto receivables		88,503	AAA		1.2	%
Other		5,603	A		0.1	%
Total asset-backed securities		160,112			2.3	%
State, municipalities and political subdivisions		369,619	AAA		5.4	%
Global High-Yield Bond Fund		55,199	B		0.8	%
Hedge Funds		48,573	N/A		0.7	%
Equities		21,329	N/A		0.3	%
Total Investment Portfolio	$	6,863,397			100.0	%

Top 10 Corporate Exposures

	December 31, 2008		Portfolio
Corporate	Fair Market Value		Percentage
JPMorgan Chase	$	121,617		1.8	%
Bank of America		70,508		1.0	%
HSBC		37,056		0.5	%
Citigroup		53,238		0.8	%
General Electric		46,656		0.7	%
Credit Suisse		36,162		0.5	%
Oracle		31,456		0.5	%
Kraft Foods		30,727		0.4	%
John Deere		27,001		0.4	%
Verizon Communications		16,368		0.2	%

Non-Agency Residential Mortgage Backed Securities Detail

											Average
							BBB		December 31, 2008		Credit
Vintage	AAA		AA		A		(and below)		Fair Market Value		Enhancement*
2007	$	5,100	$	—	$	—	$	—	$	5,100		24	%
2006		15,990		—		—		969		16,959		10	%
2005 and prior		205,772		1,301		1,391		—		208,464		10	%
Total**	$	226,862	$	1,301	$	1,391	$	969	$	230,523		10	%

** Included in the above is fair value of $1.5 million of subprime mortgages with an average rating of AAA and $14.2 million of Alt-A mortgages with an average rating of AA+.

Commercial Mortgage Backed Securities Detail

											Average
							BBB		Total		Credit
Vintage	AAA		AA		A		(and below)		Fair Value		Enhancement*
2007	$	38,494	$	—	$	—	$	—	$	38,494		30	%
2006		120,014		—		—		137		120,151		30	%
2005 and prior		316,564		—		—		—		316,564		34	%
Total	$	475,072	$	—	$	—	$	137	$	475,209		33	%

* Average credit enhancement is the amount, reported as a percentage, of subordination and/or overcollateralization available to support the security.

Page 16

ALLIED WORLD ASSURANCE COMPANY HOLDINGS, LTD
RESERVES FOR LOSSES AND LOSS EXPENSES

	AT DECEMBER 31, 2008
										CONSOLIDATED
	PROPERTY			CASUALTY			REINSURANCE			TOTAL
Case reserves (net of reinsurance recoverable)	$	268,392		$	277,738		$	255,985		$	802,115
IBNR (net of reinsurance recoverable)		94,571			1,975,690			816,138			2,886,399
Total	$	362,963		$	2,253,428		$	1,072,123		$	3,688,514
IBNR/Total reserves (net of reinsurance recoverable)		26.1	%		87.7	%		76.1	%		78.3	%

	AT DECEMBER 31, 2007
										CONSOLIDATED
	PROPERTY			CASUALTY			REINSURANCE			TOTAL
Case reserves (net of reinsurance recoverable)	$	234,023		$	227,888		$	212,315		$	674,226
IBNR (net of reinsurance recoverable)		126,593			1,650,354			785,834			2,562,781
Total	$	360,616		$	1,878,242		$	998,149		$	3,237,007
IBNR/Total reserves (net of reinsurance recoverable)		35.1	%		87.9	%		78.7	%		79.2	%

Page 17

ALLIED WORLD ASSURANCE COMPANY HOLDINGS, LTD
CAPITAL STRUCTURE AND LEVERAGE RATIOS

	DECEMBER 31,			SEPTEMBER 30,			JUNE 30,			MARCH 31,			DECEMBER 31,
	2008			2008			2008			2008			2007
Senior notes	$	498,796		$	498,767		$	498,738		$	498,710		$	498,682
Syndicated loan		243,750			—			—			—			—
Shareholders’ equity		2,416,862			2,272,828			2,378,046			2,394,620			2,239,842
Total capitalization	$	3,159,408		$	2,771,595		$	2,876,784		$	2,893,330		$	2,738,524
Leverage ratios
Debt to total capitalization		23.5	%		18.0	%		17.3	%		17.2	%		18.2	%
Closing shareholders’ equity	$	2,416,862		$	2,272,828		$	2,378,046		$	2,394,620		$	2,239,842
Add/deduct: accumulated other comprehensive (income)/loss		(105,632	)		19,775			(39,048	)		(135,626	)		(136,214	)
Adjusted shareholders’ equity	$	2,311,230		$	2,292,603		$	2,338,998		$	2,258,994		$	2,103,628
Net premiums written (trailing 12 months)	$	1,107,228		$	1,070,107		$	1,055,501		$	1,121,838		$	1,153,110
Net premiums written (trailing 12 months) to adjusted shareholders’ equity		0.48			0.47			0.45			0.50			0.55
Total investments and cash & cash equivalents	$	6,863,397		$	6,464,396		$	6,528,053		$	6,401,406		$	6,299,755
Total investments and cash & cash equivalents to adjusted shareholders’ equity		2.97			2.82			2.79			2.83			2.99
Reserve for losses and loss expenses	$	4,576,828		$	4,198,761		$	4,164,220		$	4,048,187		$	3,919,772
Deduct: reinsurance recoverable		(888,314	)		(777,283	)		(778,578	)		(758,723	)		(682,765	)
Net reserve for losses and loss expenses	$	3,688,514		$	3,421,478		$	3,385,642		$	3,289,464		$	3,237,007
Net reserve for losses and loss expenses to adjusted shareholders’ equity		1.60			1.49			1.45			1.46			1.54

Page 18

ALLIED WORLD ASSURANCE COMPANY HOLDINGS, LTD
OPERATING INCOME RECONCILIATION AND
BASIC AND DILUTED EARNINGS PER SHARE INFORMATION

	THREE MONTHS ENDED		THREE MONTHS ENDED			THREE MONTHS ENDED			THREE MONTHS ENDED			THREE MONTHS ENDED
	DECEMBER 31, 2008		SEPTEMBER 30, 2008			JUNE 30, 2008			MARCH 31, 2008			DECEMBER 31, 2007
Net income/(loss)	$	19,852	$	(46,367	)	$	79,205		$	130,945		$	123,015
Add:
Net realized investment losses/(gains)		120,047		151,876			4,393			(3,465	)		(4,544	)
Foreign exchange loss/(gain)		1,230		(2,728	)		(399	)		476			(405	)
Operating income	$	141,129	$	102,781		$	83,199		$	127,956		$	118,066
Weighted average common shares outstanding
Basic		49,028,249		49,007,389			48,897,931			48,811,932			58,247,755
Diluted		50,366,814		50,669,262	*		50,873,712			51,380,423			61,133,206
Basic per share data
Net income/(loss)	$	0.40	$	(0.95	)	$	1.62		$	2.68		$	2.11
Add:
Net realized investment losses/(gains)		2.45		3.10			0.09			(0.07	)		(0.07	)
Foreign exchange loss/(gain)		0.03		(0.06	)		(0.01	)		0.01			(0.01	)
Operating income	$	2.88	$	2.09		$	1.70		$	2.62		$	2.03
Diluted per share data
Net income/(loss)	$	0.39	$	(0.92	)*	$	1.56		$	2.55		$	2.01
Add:
Net realized investment losses/(gains)		2.39		3.00			0.09			(0.07	)		(0.07	)
Foreign exchange loss/(gain)		0.02		(0.05	)		(0.01	)		0.01			(0.01	)
Operating income	$	2.80	$	2.03		$	1.64		$	2.49		$	1.93

* For the net loss for the three months ended September 30, 2008, because operating income is positive, we are using the fully diluted weighted average common shares outstanding.

Page 19

ALLIED WORLD ASSURANCE COMPANY HOLDINGS, LTD
OPERATING INCOME RECONCILIATION AND
BASIC AND DILUTED EARNINGS PER SHARE INFORMATION

	YEAR ENDED			YEAR ENDED
	DECEMBER 31, 2008			DECEMBER 31, 2007
Net income	$	183,635		$	469,182
Add:
Net realized investment losses		272,851			7,617
Foreign exchange gain		(1,421	)		(817	)
Operating income	$	455,065		$	475,982
Weighted average common shares outstanding
Basic		48,936,912			59,846,987
Diluted		51,147,215			62,331,165
Basic per share data
Net income	$	3.75		$	7.84
Add:
Net realized investment losses		5.58			0.12
Foreign exchange gain		(0.03	)		(0.01	)
Operating income	$	9.30		$	7.95
Diluted per share data
Net income	$	3.59		$	7.53
Add:
Net realized investment losses		5.33			0.12
Foreign exchange gain		(0.02	)		(0.01	)
Operating income	$	8.90		$	7.64

Page 20

ALLIED WORLD ASSURANCE COMPANY HOLDINGS, LTD
RETURN ON AVERAGE SHAREHOLDERS’ EQUITY AND
RECONCILIATION OF AVERAGE SHAREHOLDERS’ EQUITY

	THREE MONTHS ENDED			THREE MONTHS ENDED			THREE MONTHS ENDED			THREE MONTHS ENDED			THREE MONTHS ENDED
	DECEMBER 31, 2008			SEPTEMBER 30, 2008			JUNE 30, 2008			MARCH 31, 2008			DECEMBER 31, 2007
Opening shareholders’ equity	$	2,272,828		$	2,378,046		$	2,394,620		$	2,239,842		$	2,612,775
Add/deduct: accumulated other comprehensive loss/(income)		19,775			(39,048	)		(135,626	)		(136,214	)		(62,917	)
Adjusted opening shareholders’ equity	$	2,292,603		$	2,338,998		$	2,258,994		$	2,103,628		$	2,549,858
Closing shareholders’ equity	$	2,416,862		$	2,272,828		$	2,378,046		$	2,394,620		$	2,239,842
Deduct/add: accumulated other comprehensive (income)/loss		(105,632	)		19,775			(39,048	)		(135,626	)		(136,214	)
Adjusted closing shareholders’ equity	$	2,311,230		$	2,292,603		$	2,338,998		$	2,258,994		$	2,103,628
Average shareholders’ equity	$	2,301,917		$	2,315,801		$	2,298,996		$	2,181,311		$	2,326,743
Net income/(loss) available to shareholders	$	19,852		$	(46,367	)	$	79,205		$	130,945		$	123,015
Annualized net income/(loss) available to shareholders		79,408			(185,468	)		316,820			523,780			492,060
Annualized return on average shareholders’ equity — net income/(loss) available to shareholders		3.4	%		(8.0	%)		13.8	%		24.0	%		21.1	%
Operating income available to shareholders	$	141,129		$	102,781		$	83,199		$	127,956		$	118,066
Annualized operating income available to shareholders		564,516			411,124			332,796			511,824			472,264
Annualized return on average shareholders’ equity — operating income available to shareholders		24.5	%		17.8	%		14.5	%		23.5	%		20.3	%

Page 21

ALLIED WORLD ASSURANCE COMPANY HOLDINGS, LTD
RETURN ON AVERAGE SHAREHOLDERS’ EQUITY AND
RECONCILIATION OF AVERAGE SHAREHOLDERS’ EQUITY

	YEAR ENDED			YEAR ENDED
	DECEMBER 31, 2008			DECEMBER 31, 2007
Opening shareholders’ equity	$	2,239,842		$	2,220,084
Deduct: accumulated other comprehensive income		(136,214	)		(6,464	)
Adjusted opening shareholders’ equity	$	2,103,628		$	2,213,620
Closing shareholders’ equity	$	2,416,862		$	2,239,842
Deduct: accumulated other comprehensive income		(105,632	)		(136,214	)
Adjusted closing shareholders’ equity	$	2,311,230		$	2,103,628
Average shareholders’ equity	$	2,207,429		$	2,158,624
Net income available to shareholders	$	183,635		$	469,182
Annualized return on average shareholders’ equity — net income available to shareholders		8.3	%		21.7	%
Operating income available to shareholders	$	455,065		$	475,982
Annualized return on average shareholders’ equity — operating income available to shareholders		20.6	%		22.1	%

Page 22

ALLIED WORLD ASSURANCE COMPANY HOLDINGS, LTD
DILUTED BOOK VALUE PER SHARE

	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

Page 23

ALLIED WORLD ASSURANCE COMPANY HOLDINGS, LTD
ANNUALIZED INVESTMENT BOOK YIELD

	THREE MONTHS ENDED			THREE MONTHS ENDED			YEAR ENDED			YEAR ENDED
	DECEMBER 31, 2008			DECEMBER 31, 2007			DECEMBER 31, 2008			DECEMBER 31, 2007
Net investment income	$	82,583		$	75,214		$	308,775		$	297,932
Deduct: annual and non-recurring items		7,921			N/A			14,540	*		N/A
Net investment income, recurring	$	74,662		$	75,214		$	294,235		$	297,932
Annualized net investment income, recurring	$	298,648		$	300,856		$	294,235		$	297,932
Add: annual and non-recurring items		7,921			N/A			6,619	*		N/A
Normalized net investment income	$	306,569		$	300,856		$	300,854		$	297,932
Opening aggregate invested assets:
Fixed maturity investments available for sale, amortized cost	$	5,440,019		$	5,984,929		$	5,595,943		$	5,188,379
Other invested assets, available for sale, cost		81,262			280,696			291,458			245,657
Other invested assets, at cost		180,716			—			—			—
Cash and cash equivalents		744,245			329,862			202,582			366,817
Restricted cash		47,689			46,903			67,886			138,223
Balances receivable on sale of investments		36,264			7,951			84,998			16,545
Balances due on purchase of investments		(68,681	)		(123,482	)		(141,462	)		—
Opening aggregate invested assets	$	6,461,514		$	6,526,859		$	6,101,405		$	5,955,621
Closing aggregate invested assets:
Fixed maturity investments available for sale, amortized cost	$	5,872,031		$	5,595,943		$	5,872,031		$	5,595,943
Other invested assets, available for sale, cost		89,229			291,458			89,229			291,458
Equity securities, cost		21,493			—			21,493			—
Other invested assets, cost		100,198			—			100,198			—
Cash and cash equivalents		655,828			202,582			655,828			202,582
Restricted cash		50,439			67,886			50,439			67,886
Balances receivable on sale of investments		12,371			84,998			12,371			84,998
Balances due on purchase of investments		—			(141,462	)		—			(141,462	)
Closing aggregate invested assets	$	6,801,589		$	6,101,405		$	6,801,589		$	6,101,405
Average aggregate invested assets	$	6,631,552		$	6,314,132		$	6,451,497		$	6,028,513
Annualized investment book yield		4.6	%		4.8	%		4.7	%		4.9	%

* Includes an annual dividend received at the beginning of the year and excludes the annual dividend received at the end of the year.

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ALLIED WORLD ASSURANCE COMPANY HOLDINGS, LTD
ANNUALIZED INVESTMENT BOOK YIELD

	NINE MONTHS ENDED			SIX MONTHS ENDED			THREE MONTHS ENDED
	SEPTEMBER 30, 2008			JUNE 30, 2008			MARCH 31, 2008
Net investment income	$	226,192		$	149,276		$	76,931
Deduct: annual and non-recurring items		7,138			6,403			6,073
Net investment income, recurring	$	219,054		$	142,873		$	70,858
Annualized net investment income, recurring	$	292,072		$	285,746		$	283,432
Add: annual and non-recurring items		7,138			6,403			6,073
Normalized net investment income	$	299,210		$	292,149		$	289,505
Opening aggregate invested assets:
Fixed maturity investments available for sale, amortized cost	$	5,595,943		$	5,595,943		$	5,595,943
Other invested assets, available for sale, cost		291,458			291,458			291,458
Other invested assets, at cost		—			—			—
Cash and cash equivalents		202,582			202,582			202,582
Restricted cash		67,886			67,886			67,886
Balances receivable on sale of investments		84,998			84,998			84,998
Balances due on purchase of investments		(141,462	)		(141,462	)		(141,462	)
Opening aggregate invested assets	$	6,101,405		$	6,101,405		$	6,101,405
Closing aggregate invested assets:
Fixed maturity investments available for sale, amortized cost	$	5,440,019		$	5,685,111		$	5,071,730
Other invested assets, available for sale, cost		81,262			81,241			82,380
Other invested assets, at cost		180,716			178,266			177,419
Cash and cash equivalents		744,245			439,933			774,337
Restricted cash		47,689			84,492			140,049
Balances receivable on sale of investments		36,264			96,801			6,323
Balances due on purchase of investments		(68,681	)		(107,054	)		—
Closing aggregate invested assets	$	6,461,514		$	6,458,790		$	6,252,238
Average aggregate invested assets	$	6,281,460		$	6,280,098		$	6,176,822
Annualized investment book yield		4.8	%		4.7	%		4.7	%

Page 25

ALLIED WORLD ASSURANCE COMPANY HOLDINGS, LTD
REGULATION G

In presenting the company’s results, management has included and discussed certain non-GAAP financial measures. 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 GAAP.

OPERATING INCOME

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 distorts the analysis of trends in its 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. See pages 19 and 20 for reconciliations of operating income to net income.

ANNUALIZED RETURN ON AVERAGE SHAREHOLDERS’ EQUITY (“ROAE”)

Annualized return on average shareholders’ equity is calculated using average 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. See pages 21 and 22 for reconciliations of average shareholders’ equity.

ANNUALIZED OPERATING RETURN ON AVERAGE SHAREHOLDERS’ EQUITY

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 return on average shareholders’ equity explanation above. See pages 19 and 20 for the reconciliations of net income to operating income and pages 21 and 22 for the reconciliations of average shareholders’ equity.

DILUTED BOOK VALUE PER SHARE

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. See page 23 for a reconciliation of diluted book value per share to basic book value per share.

ANNUALIZED INVESTMENT BOOK YIELD

Annualized investment book yield is calculated by dividing normalized net investment income by average aggregate invested assets at book value. In calculating annualized investment book yield, normalized net investment income for the period is multiplied by the number of such periods in a calendar year in order to arrive at annualized net investment income. Normalized net investment income is adjusted for known annual or non-recurring items. The company utilizes and presents the investment yield in order to better disclose the performance of the company’s investments and to show the components of the company’s ROAE. See pages 24 and 25 for reconciliations of annualized investment book yield.

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