PEMBROKE, Bermuda, Feb. 5 /PRNewswire-FirstCall/ -- 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 predominantly 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 shareholders' 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
shareholders' 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 Year Ended
December 31, 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,
ASSETS: 2008 2007
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 Year Ended
December 31, 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 Year Ended
December 31, 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
-0- 02/05/2009
/CONTACT: Media, Faye Cook, AVP, Marketing & Communications,
+1-441-278-5406, faye.cook@awac.com; or Investors, Keith J. Lennox, Investor
Relations Officer, +1-646-794-0750, keith.lennox@awac.com, both of Allied
World Assurance Company Holdings, Ltd/
/Web site: http://www.awac.com/
(AWH)
