Allied World Reports 6.3% Quarterly Growth in Diluted Book Value Per Share With Strong Third Quarter 2012 Results

Gross Premiums Written up 20% through September 2012

31 Oct, 2012, 16:30 ET from Allied World Assurance Company Holdings, AG

ZUG, Switzerland, Oct. 31, 2012 /PRNewswire/ -- Allied World Assurance Company Holdings, AG (NYSE: AWH) today reported net income of $219.6 million, or $6.00 per diluted share, for the third quarter of 2012 compared to a net loss of $11.0 million, or $0.29 per diluted share, for the third quarter of 2011.  Net income for the nine months ended September 30, 2012 was $534.2 million, or $14.28 per diluted share, compared to net income of $91.4 million, or $2.30 per diluted share, for the first nine months of 2011.

The company reported operating income of $79.2 million, or $2.16 per diluted share, for the third quarter of 2012, compared to operating income of $86.2 million, or $2.19 per diluted share, for the third quarter of 2011.  Operating income for the nine months ended September 30, 2012 was $258.0 million, or $6.90 per diluted share, compared to operating income of $89.0 million, or $2.24 per diluted share, for the first nine months of 2011.

President and Chief Executive Officer Scott Carmilani commented, "The aftermath of Hurricane Sandy is in our minds, both personally and professionally, as we issue our third quarter results.  While it's too early to estimate the losses to Allied World, it is not too early to understand the significant impact this storm has had on the families and communities throughout the Atlantic states.  Our hearts and minds go out to everyone affected.

With regard to our third quarter results, we believe we have demonstrated how Allied World's size and diversity allows it to withstand a major industry loss event while still producing strong returns and significant book value growth for our shareholders.  Despite having recorded $40 million of crop-related losses, the company is reporting net income of $220 million, or $6 per diluted share, for the quarter driven by gains in our investment portfolio and by strong overall underwriting results.  Diluted book value per share grew by 6.3% for the quarter, to $93.82 at September 30th, and is up 17% for the first nine months of the year."

Underwriting Results

Gross premiums written were $504.4 million in the third quarter of 2012, a 13.9% increase compared to $442.7 million in the third quarter of 2011.  For the nine months ended September 30, 2012, gross premiums written totaled $1,832.2 million, a 20.3% increase compared to $1,523.0 million in the first nine months of 2011.  Net premiums written were $391.5 million in the third quarter of 2012, an 11.8% increase compared to $350.3 million in the third quarter of 2011.  For the nine months ended September 30, 2012, net premiums written totaled $1,475.2 million, a 20.2% increase compared to $1,226.9 million in the first nine months of 2011.  

Net premiums earned in the third quarter of 2012 were $441.0 million, an 18.8% increase compared to $371.3 million in the third quarter of 2011.  For the nine months ended September 30, 2012, net premiums earned totaled $1,272.7 million, a 19.9% increase compared to $1,061.5 million in the first nine months of 2011.  

The combined ratio was 88.1% in the third quarter of 2012 compared to 83.9% in the third quarter of 2011.  The loss and loss expense ratio was 58.7% in the third quarter of 2012 compared to 55.4% in the third quarter of 2011.  During the third quarter of 2012, the company recorded net favorable reserve development on prior loss years of $56.2 million.  This favorable reserve development resulted in a benefit of 12.7 percentage points to the company's loss and loss expense ratio for the quarter.  This compares to the third quarter of 2011, when the company recorded net favorable reserve development on prior loss years of $61.5 million, a benefit of 16.6 percentage points to the company's loss and loss expense ratio for that quarter.  Absent these adjustments, the loss and loss expense ratio for the third quarter of 2012 was 71.4% compared to 72.0% for the third quarter of 2011.  The third quarter 2012 loss and loss expense ratio was impacted by $45.0 million, or 10.2 percentage points, from $40.0 million of crop reinsurance losses and $5.0 million of losses related to Hurricane Isaac.  This compares to the third quarter of 2011 loss and loss expense ratio, which was impacted by $33.5 million of net losses, or 9.0 percentage points, from global catastrophes.

For the nine months ended September 30, 2012, the combined ratio was 86.2% compared to 100.7% for the first nine months of 2011.  For the nine months ended September 30, 2012, the company recorded net favorable reserve development on prior loss years of $137.6 million, a benefit of 10.8 percentage points to the company's loss and loss expense ratio.  For the nine months ended September 30, 2011, the company recorded net favorable reserve development on prior loss years of $161.1 million, a benefit of 15.4 percentage points to the company's loss and loss expense ratio.  Absent prior year reserve adjustments, the loss and loss expense ratio for the nine months ended September 30, 2012 was 67.7% compared to 85.7% for 2011.  The loss and loss expense ratio for the first nine months of 2012 was impacted by $45.0 million, or 3.5 percentage points, from $40.0 million of crop reinsurance losses and $5.0 million of losses related to Hurricane Isaac.  The loss and loss expense ratio for the first nine months of 2011 was impacted by $233.1 million of net losses, or 22.2 percentage points, from global catastrophes.  

The company's expense ratio was 29.4% for the third quarter of 2012 compared to 28.5% for the third quarter of 2011.   The expense ratio was 29.3% for the nine months ended September 30, 2012 compared to 30.4% for the first nine months of 2011.  

Investment Results

The total return on the company's investment portfolio for the three months ended September 30, 2012 was 2.2% compared to negative 1.1% for the three months ended September 30, 2011.  The total return on the company's investment portfolio for the nine months ended September 30, 2012 was 4.9% compared to 1.1% for the nine months ended September 30, 2011.  See the table below for the components of our investment returns:

THREE MONTHS ENDED

THREE MONTHS ENDED

NINE MONTHS ENDED

NINE MONTHS ENDED

September 30, 2012

September 30, 2011

September 30, 2012

September 30, 2011

(Expressed in millions of U.S. Dollars)

(Expressed in millions of U.S. Dollars)

Net investment income

$                      39.1

$                       47.9

$                  128.8

$                  150.5

Net realized investment gains

149.8

(130.8)

292.1

(21.6)

Change in unrealized gains

-

(5.9)

(15.5)

(42.4)

Net investment income, realized gains and unrealized gains

188.9

(88.9)

405.4

86.5

Average invested assets

$                 8,449.4

$                  8,048.1

$               8,332.5

$               7,878.3

Financial statement portfolio return

2.2%

(1.1%)

4.9%

1.1%

Note: investment income, net realized gains / losses and change in unrealized gains / losses are disclosed on a pre-tax basis.

Shareholders' Equity

As of September 30, 2012, our total shareholders' equity was $3,435.8 million, compared to $3,149.0 million as of December 31, 2011.

As of September 30, 2012, diluted book value per share was $93.82, an increase of 17.1% compared to $80.11 as of December 31, 2011.  

Share Repurchase Program

During the third quarter of 2012, the company repurchased 605,898 of its common shares through its share repurchase program in the open market at an average price of $78.54 per share for an aggregate cost of $47.6 million.  

Allied World Financial Services, Inc.

During the quarter we launched Allied World Financial Services, Inc.  Our goal is to expand our asset management expertise, invest in strategic business opportunities and diversify our earnings stream with business relationships that complement our core property and casualty business.

Supplementary Information

Allied World will be providing a Financial Supplement relating to third quarter 2012 and an Investment Supplement as of September 30, 2012.  This information will be available at the "Investor Relations" section of the company's website at www.awac.com.

Conference Call

Scott Carmilani, President and Chief Executive Officer, and other members of the company's management will host a conference call on Thursday, November 1, 2012 at 9:00 am (Eastern Time) to discuss Allied World's third quarter 2012 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 (866) 843-0890 (U.S. and Canada callers) or (412) 317-9250 (international callers) and entering the passcode 4579664 approximately ten minutes prior to the call.

Following the conclusion of the presentation, a replay of the call will be available through Thursday, November 15, 2012 by dialing (877) 344-7529 (U.S. and Canada callers) or (412) 317-0088 (international callers) and entering the passcode 10018518. In addition, the webcast will remain available online through Thursday, November 15, 2012 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-generally accepted accounting principles ("non-GAAP") financial measures within the meaning of Regulation G as promulgated by the U.S. Securities and Exchange Commission. Management believes that these non-GAAP measures, which may be defined differently by other companies, better explain the company's results of operations in a manner that allows for a more complete understanding of the underlying trends in the company's business. However, these measures should not be viewed as a substitute for those determined in accordance with generally accepted accounting principles ("U.S. GAAP").

"Operating income" is an internal performance measure used in the management of the company's operations and represents after-tax operational results excluding, as applicable, net realized investment gains or losses, net impairment charges recognized in earnings, net foreign exchange gain or loss and impairment of intangible assets, and other non-recurring items. The company excludes net realized investment gains or losses, net impairment charges recognized in earnings, net foreign exchange gain or loss, and other non-recurring items from the calculation of operating income because these amounts are heavily influenced by and fluctuate in part according to the availability of market opportunities and other factors.  In addition to presenting net income determined in accordance with U.S. GAAP, the company believes that showing operating income enables investors, analysts, rating agencies and other users of the company's financial information to more easily analyze our results of operations and underlying business performance. Operating income should not be viewed as a substitute for U.S. GAAP net income.

The company has included "diluted book value per share" because it takes into account the effect of dilutive securities; therefore, the company believes it is an important measure of calculating shareholder returns.

"Annualized net income return on average shareholders' equity" ("ROAE") is calculated using average shareholders' equity, excluding the average after tax unrealized gains (or losses) on investments. Unrealized gains (losses) on investments are primarily the result of interest rate and credit spread movements and the resultant impact on fixed income securities. Such gains (losses) are not related to management actions or operational performance, nor are they likely to be realized. Therefore, the company believes that excluding these unrealized gains (losses) provides a more consistent and useful measurement of operating performance, which supplements U.S. GAAP information. In calculating ROAE, the net income (loss) available to shareholders for the period is multiplied by the number of such periods in a calendar year in order to arrive at annualized net income (loss) available to shareholders. The company presents ROAE as a measure that is commonly recognized as a standard of performance by investors, analysts, rating agencies and other users of its financial information.

"Annualized operating return on average shareholders' equity" is calculated using operating income (as defined above and annualized in the manner described for net income (loss) available to shareholders under ROAE above) and average shareholders' equity, excluding the average after tax unrealized gains (losses) on investments. Unrealized gains (losses) are excluded from equity for the reasons outlined in the annualized net income return on average shareholders' equity explanation above.

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

About Allied World Assurance Company Allied World Assurance Company Holdings, AG, through its subsidiaries, is a global provider of innovative property, casualty and specialty insurance and reinsurance solutions, offering superior client service through a global network of offices and branches. All of Allied World's rated insurance and reinsurance subsidiaries are rated A by A.M. Best Company, A by Standard & Poor's, and A2 by Moody's, and our Lloyd's Syndicate 2232 is rated A+ by Standard & Poor's and Fitch. Please visit www.awac.com for further information on Allied World.

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 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; 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; 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, AG

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Expressed in thousands of United States dollars, except share and per share amounts)

Quarter Ended September 30,

Nine Months Ended September 30,

2012 

2011 

2012 

2011 

Revenues:

Gross premiums written

$

504,420

$

442,698

$

1,832,219

$

1,522,984

Premiums ceded

(112,883)

(92,438)

(357,019)

(296,050)

Net premiums written

391,537

350,260

1,475,200

1,226,934

Change in unearned premiums

49,480

21,080

(202,546)

(165,411)

Net premiums earned

441,017

371,340

1,272,654

1,061,523

Net investment income

39,121

47,883

128,781

150,459

Net realized investment gains (losses)

149,813

(130,809)

292,057

(21,555)

Other income - termination fee

35,000

35,000

Total revenue

629,951

323,414

1,693,492

1,225,427

Expenses:

Net losses and loss expenses

258,948

205,546

724,530

745,811

Acquisition costs

51,086

39,680

149,812

120,733

General and administrative expenses

78,572

66,007

222,917

201,164

Amortization of intangible assets

633

767

1,900

2,300

Interest expense

13,822

13,748

41,579

41,235

Foreign exchange loss (gain)

1,023

2,966

(77)

3,708

Total expenses

404,084

328,714

1,140,661

1,114,951

Income (loss) before income taxes

225,867

(5,300)

552,831

110,476

Income tax expense

6,220

5,672

18,677

19,028

NET INCOME (LOSS)

$

219,647

$

(10,972)

$

534,154

$

91,448

PER SHARE DATA:

Basic earnings (loss) per share

$

6.16

$

(0.29)

$

14.68

$

2.40

Diluted earnings (loss) per share

$

6.00

$

(0.29)

$

14.28

$

2.30

Weighted average common shares outstanding

35,652,768

38,110,368

36,379,514

38,078,116

Weighted average common shares and common share equivalents outstanding

36,616,734

38,110,368

37,393,093

39,759,780

Dividends paid per share

$

0.750

$

0.375

$

1.500

$

0.375

ALLIED WORLD ASSURANCE COMPANY HOLDINGS, AG

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(Expressed in thousands of United States dollars, except share and per share amounts)

As of

As of

September 30,

December 31,

ASSETS:

2012 

2011 

Fixed maturity investments available for sale, at fair value

$

29,085

$

244,016

Fixed maturity investments trading, at fair value

7,125,860

6,254,686

Equity securities trading, at fair value

490,418

367,483

Other invested assets trading, at fair value

564,702

540,409

Total investments

8,210,065

7,406,594

Cash and cash equivalents

686,440

716,604

Insurance balances receivable

754,978

652,158

Prepaid reinsurance

262,163

226,721

Reinsurance recoverable

1,077,522

1,002,919

Accrued investment income

32,348

38,263

Net deferred acquisition costs

127,527

100,334

Goodwill

268,376

268,376

Intangible assets

51,998

53,898

Balances receivable on sale of investments

756,570

580,443

Net deferred tax assets

23,185

22,646

Other assets

60,817

53,202

Total assets

$

12,311,989

$

11,122,158

LIABILITIES:

Reserve for losses and loss expenses

$

5,450,787

$

5,225,143

Unearned premiums

1,316,399

1,078,412

Reinsurance balances payable

120,432

124,539

Balances due on purchases of investments

1,075,069

616,728

Senior notes

798,147

797,949

Dividends payable

14,302

Accounts payable and accrued liabilities

115,369

116,063

Total liabilities

8,876,203

7,973,136

SHAREHOLDERS' EQUITY:

Common shares, 2012: par value CHF 12.98 per share and 2011: par value CHF 14.03 per share (2012: 37,083,742; 2011: 40,003,642 shares issued and 2012: 35,402,558; 2011: 37,742,131 shares outstanding)

477,246

557,153

Additional paid-in capital

78,225

Treasury shares, at cost (2012: 1,681,184; 2011: 2,261,511)

(120,944)

(136,590)

Retained earnings

3,078,099

2,635,750

Accumulated other comprehensive income

1,385

14,484

Total shareholders' equity

3,435,786

3,149,022

Total liabilities and shareholders' equity

$

12,311,989

$

11,122,158

ALLIED WORLD ASSURANCE COMPANY HOLDINGS, AG

UNAUDITED CONSOLIDATED SEGMENT DATA

(Expressed in thousands of United States dollars, except for ratio information)

U.S.

International

Quarter Ended September 30, 2012

Insurance

Insurance

Reinsurance

Total

Gross premiums written

$

263,129

$

121,315

$

119,976

$

504,420

Net premiums written

200,779

71,199

119,559

391,537

Net premiums earned

173,948

85,329

181,740

441,017

Net losses and loss expenses

(109,111)

(15,099)

(134,738)

(258,948)

Acquisition costs

(22,696)

266

(28,656)

(51,086)

General and administrative expenses

(37,388)

(22,920)

(18,264)

(78,572)

Underwriting income

4,753

47,576

82

52,411

Net investment income

39,121

Net realized investment gains

149,813

Amortization of intangible assets

(633)

Interest expense

(13,822)

Foreign exchange loss

(1,023)

Income before income taxes

$

225,867

GAAP Ratios:

Loss and loss expense ratio

62.7%

17.7%

74.1%

58.7%

Acquisition cost ratio

13.0%

(0.3%)

15.8%

11.6%

General and administrative expense ratio

21.5%

26.9%

10.0%

17.8%

Combined ratio

97.2%

44.3%

99.9%

88.1%

U.S.

International

Quarter Ended September 30, 2011

Insurance

Insurance

Reinsurance

Total

Gross premiums written

$

201,522

$

109,612

$

131,564

$

442,698

Net premiums written

157,310

61,386

131,564

350,260

Net premiums earned

150,474

80,175

140,691

371,340

Net losses and loss expenses

(85,720)

(43,666)

(76,160)

(205,546)

Acquisition costs

(19,549)

343

(20,474)

(39,680)

General and administrative expenses

(28,945)

(21,558)

(15,504)

(66,007)

Underwriting income

16,260

15,294

28,553

60,107

Net investment income

47,883

Net realized investment losses

(130,809)

Other income - termination fee

35,000

Amortization of intangible assets

(767)

Interest expense

(13,748)

Foreign exchange loss

(2,966)

Loss before income taxes

$

(5,300)

GAAP Ratios:

Loss and loss expense ratio

57.0%

54.5%

54.1%

55.4%

Acquisition cost ratio

13.0%

(0.4%)

14.6%

10.7%

General and administrative expense ratio

19.2%

26.9%

11.0%

17.8%

Combined ratio

89.2%

81.0%

79.7%

83.9%

ALLIED WORLD ASSURANCE COMPANY HOLDINGS, AG

UNAUDITED CONSOLIDATED SEGMENT DATA

(Expressed in thousands of United States dollars, except for ratio information)

U.S.

International

Nine Months Ended September 30, 2012

Insurance

Insurance

Reinsurance

Total

Gross premiums written

$

733,314

$

418,498

$

680,407

$

1,832,219

Net premiums written

551,286

255,150

668,764

1,475,200

Net premiums earned

490,091

247,805

534,758

1,272,654

Net losses and loss expenses

(309,889)

(75,432)

(339,209)

(724,530)

Acquisition costs

(63,918)

1,376

(87,270)

(149,812)

General and administrative expenses

(103,162)

(66,969)

(52,786)

(222,917)

Underwriting income

13,122

106,780

55,493

175,395

Net investment income

128,781

Net realized investment gains

292,057

Amortization of intangible assets

(1,900)

Interest expense

(41,579)

Foreign exchange gain

77

Income before income taxes

$

552,831

GAAP Ratios:

Loss and loss expense ratio

63.2%

30.4%

63.4%

56.9%

Acquisition cost ratio

13.0%

(0.6%)

16.3%

11.8%

General and administrative expense ratio

21.0%

27.0%

9.9%

17.5%

Combined ratio

97.2%

56.8%

89.6%

86.2%

U.S.

International

Nine Months Ended September 30, 2011

Insurance

Insurance

Reinsurance

Total

Gross premiums written

$

611,562

$

399,530

$

511,892

$

1,522,984

Net premiums written

470,099

245,281

511,554

1,226,934

Net premiums earned

431,812

236,421

393,290

1,061,523

Net losses and loss expenses

(294,146)

(186,932)

(264,733)

(745,811)

Acquisition costs

(56,527)

2,946

(67,152)

(120,733)

General and administrative expenses

(90,997)

(62,939)

(47,228)

(201,164)

Underwriting (loss) income

(9,858)

(10,504)

14,177

(6,185)

Net investment income

150,459

Net realized investment losses

(21,555)

Other income - termination fee

35,000

Amortization of intangible assets

(2,300)

Interest expense

(41,235)

Foreign exchange loss

(3,708)

Income before income taxes

$

110,476

GAAP Ratios:

Loss and loss expense ratio

68.1%

79.1%

67.3%

70.3%

Acquisition cost ratio

13.1%

(1.2%)

17.1%

11.4%

General and administrative expense ratio

21.1%

26.6%

12.0%

19.0%

Combined ratio

102.3%

104.5%

96.4%

100.7%

ALLIED WORLD ASSURANCE COMPANY HOLDINGS, AG

UNAUDITED OPERATING INCOME RECONCILIATION

(Expressed in thousands of United States dollars, except share and per share amounts)

Quarter Ended September 30,

Nine Months Ended September 30,

2012 

2011 

2012 

2011 

Net income (loss)

$

219,647

$

(10,972)

$

534,154

$

91,448

Add after tax effect of:

Net realized investment (gains) losses

(141,451)

126,440

(276,035)

26,119

Other Income - termination fee

(32,270)

(32,270)

Foreign exchange loss (gain)

1,023

2,966

(77)

3,708

Operating income

$

79,219

$

86,164

$

258,042

$

89,005

Weighted average common shares outstanding:

Basic

35,652,768

38,110,368

36,379,514

38,078,116

Diluted

36,616,734

39,340,710

*

37,393,093

39,759,780

Basic per share data:

Net income (loss)

$

6.16

$

(0.29)

$

14.68

$

2.40

Add after tax effect of:

Net realized investment (gains) losses

(3.97)

3.32

(7.59)

0.69

Other Income - termination fee

(0.85)

(0.85)

Foreign exchange loss (gain)

0.03

0.08

0.10

Operating income

$

2.22

$

2.26

$

7.09

$

2.34

Diluted per share data:

Net income (loss)

$

6.00

$

(0.29)

*

$

14.28

$

2.30

Add after tax effect of:

Net realized investment (gains) losses

(3.86)

3.21

(7.38)

0.66

Other Income - termination fee

(0.82)

(0.81)

Foreign exchange loss (gain)

0.02

0.09

0.09

Operating income

$

2.16

$

2.19

$

6.90

$

2.24

*

Diluted weighted average common shares outstanding were only used in the calculation of diluted operating income per share. There were no common share equivalents included in calculating diluted earnings per share as there was a net loss and any additional shares would prove to be anti-dilutive.

ALLIED WORLD ASSURANCE COMPANY HOLDINGS, AG

UNAUDITED  DILUTED BOOK VALUE PER SHARE RECONCILIATION

(Expressed in thousands of United States dollars, except share and per share amounts)

As of

As of

As of

September 30,

December 31,

September 30,

2012 

2011 

2011 

Price per share at period end

$

77.25

$

62.93

$

53.71

Total shareholders' equity

$

3,435,786

$

3,149,022

$

3,003,074

Basic common shares outstanding

35,402,558

37,742,131

38,145,557

Add: unvested restricted share units

179,986

249,251

256,672

Add: performance based equity awards

508,130

889,939

898,014

Add: employee share purchase plan

5,925

11,053

1,215

Add: dilutive options/warrants outstanding

1,306,837

1,525,853

1,107,305

 Weighted average exercise price per share

$

46.14

$

45.72

$

38.80

Deduct: options bought back via treasury method

(780,502)

(1,108,615)

(799,914)

Common shares and common share

equivalents outstanding

36,622,934

39,309,612

39,608,849

Basic book value per common share

$

97.05

$

83.44

$

78.73

Diluted book value per common share

$

93.82

$

80.11

$

75.82

ALLIED WORLD ASSURANCE COMPANY HOLDINGS, AG

UNAUDITED ANNUALIZED RETURN ON SHAREHOLDERS' EQUITY RECONCILIATION

(Expressed in thousands of United States dollars, except for percentage information)

Quarter Ended September 30,

Nine Months Ended September 30,

2012 

2011 

2012 

2011 

Opening shareholders' equity

$

3,283,901

$

3,044,417

$

3,149,022

$

3,075,820

Deduct: accumulated other comprehensive income

(1,414)

(23,095)

(14,484)

(57,135)

Adjusted opening shareholders' equity

3,282,487

3,021,322

3,134,538

3,018,685

Closing shareholders' equity

$

3,435,786

$

3,003,074

$

3,435,786

$

3,003,074

Deduct: accumulated other comprehensive income

(1,385)

(17,796)

(1,385)

(17,796)

Adjusted closing shareholders' equity

3,434,401

2,985,278

3,434,401

2,985,278

Average shareholders' equity

$

3,358,444

$

3,003,300

$

3,284,470

$

3,001,982

Net income (loss) available to shareholders

$

219,647

$

(10,972)

$

534,154

$

91,448

Annualized net income (loss) available to shareholders

878,588

(43,888)

712,205

121,931

Annualized return on average shareholders' equity -

net income (loss) available to shareholders

26.2%

(1.5%)

21.7%

4.1%

Operating income available to shareholders

$

79,219

$

86,163

$

258,042

$

89,005

Annualized operating income available to shareholders

316,876

344,652

344,056

118,673

Annualized return on average shareholders' equity -

operating income available to shareholders

9.4%

11.5%

10.5%

4.0%

SOURCE Allied World Assurance Company Holdings, AG



RELATED LINKS

http://www.awac.com