FOR IMMEDIATE RELEASE
ALLIED WORLD REPORTS SOLID FOURTH QUARTER OPERATING RESULTS
PEMBROKE, BERMUDA, February 5, 2009
Allied World Assurance Company Holdings, Ltd (NYSE: AWH)
today reported net income of $19.9 million, or $0.39 per diluted share, for the fourth quarter of
2008 compared to net income of $123.0 million, or $2.01 per diluted share, for the fourth quarter
of 2007. Net income for the year ended December 31, 2008 was
$183.6 million, or $3.59 per diluted
share, compared to net income of $469.2 million, or $7.53 per diluted share, for the year ended
December 31, 2007.
The company reported record operating income of $141.1 million, or $2.80 per diluted share, for the
fourth quarter of 2008 compared to operating income of $118.1 million, or $1.93 per diluted share,
for the fourth quarter of 2007. Operating income for the year ended December 31, 2008 was $455.1
million, or $8.90 per diluted share, compared to operating income of $476.0 million, or $7.64 per
diluted share, for the year ended December 31, 2007.
President and Chief Executive Officer Scott Carmilani commented, Allied World has emerged from
2008 as an even stronger company despite it being a very difficult year for insurance companies and
the financial sector as a whole. While not immune to the impact of the catastrophe losses for the year, we still managed to generate a very impressive 20.6%
operating ROE for 2008 and ended the year with over $2.4 billion in shareholders equity, up 8%
from year end 2007. In the fourth quarter, we achieved record
operating income driven by
strong investment income, favorable reserve development and a meaningful contribution from
our recently acquired Darwin business.
Mr. Carmilani continued, We accomplished these strong results in a year when we made significant
investments in our operating platforms and infrastructure, particularly in the United States.
These actions combined with our strong capital have helped position us right where we want to be in
the market at a time when we believe there are significant opportunities.