Exhibit 99.1

ALLIED WORLD REPORTS FOURTH QUARTER AND FULL YEAR 2016 RESULTS
The company announced on December 18, 2016 it had entered into a definitive agreement to be acquired by Fairfax Financial Holdings Limited (TSX: FFH and FFH.U), whereby Fairfax will acquire all of the outstanding shares of the company for a total equity value of approximately $4.9 billion, including a $5.00 special dividend to be paid by Allied World. The acquisition is anticipated to be completed in the second quarter of 2017.
Growth in basic book value per share of 5.0% for the full year 2016.
Full year combined ratio of 96.2% and underwriting income of $91.0 million.
Net investment income increased by 19.2% to $217.7 million for the full year 2016.
Net catastrophe losses of $49.9 million during the quarter primarily due to Hurricane Matthew and the New Zealand earthquake.
ZUG, Switzerland -- (BUSINESS WIRE) -- Allied World Assurance Company Holdings, AG (NYSE: AWH) today reported a net loss of $40.9 million, or $0.47 per diluted share, for the fourth quarter of 2016 compared to net income of $1.7 million, or $0.02 per diluted share, for the fourth quarter of 2015. Net income for the year ended December 31, 2016 was $255.2 million, or $2.84 per diluted share, compared to net income of $83.9 million, or $0.89 per diluted share, for the year ended December 31, 2015.
The company reported operating income of $42.4 million, or $0.48 per diluted share, for the fourth quarter of 2016, compared to operating income of $43.0 million, or $0.47 per diluted share, for the fourth quarter of 2015. Operating income for the year ended December 31, 2016 was $239.4 million, or $2.67 per diluted share, compared to operating income of $212.0 million, or $2.25 per diluted share, for the year ended December 31, 2015.
President and Chief Executive Officer, Scott Carmilani commented, "Allied World had a very good year in 2016 despite a challenging operating environment and an increase in natural catastrophes during the fourth quarter. For the full year, I am pleased that our 96.2% combined ratio and solid contributions from the investment portfolio helped generate an 8.3% return on tangible equity and grow our basic book value per share by 5.0%. Looking ahead, we are very excited to become a part of the Fairfax family of companies and believe this combination will better position us to grow our specialty businesses globally in 2017 and beyond."

Fourth Quarter Summary (Unaudited)
(Expressed in millions of U.S. dollars, except per share amounts)
Three Months Ended December 31,
Diluted per share
Year Ended December 31,
Diluted per share
 
2016
2015
2016

2015
2016
2015
2016
2015
 
 
 
 
 
 
 
 
 
Net income
$(40.9)
$1.7
$
(0.46
)*
$0.02
$255.2
$83.9
$2.84
$0.89
Add pre-tax effect of:
 
 
 

 
 
 
 
Net realized investment losses (gains)
101.9
38.8
1.15

0.42
2.1
127.6
(0.02)
1.36
Foreign exchange loss (gain)
0.8
0.9
0.01

0.01
(4.1)
11.3
(0.04)
0.12
Income tax (benefit) expense
(19.4)
1.6
(0.22)

0.02
(9.7)
(10.8)
(0.11)
(0.12)
Operating income
$42.4
$43.0
$0.48
$0.47
$239.4
$212.0
$2.67
$2.25
 
 
 
 
 
 
 
 
 
* Diluted weighted average common shares outstanding were only used in the calculation of diluted operating income per share, and not in the calculation of diluted earnings per share, as there was a net loss during the three months ended December 31, 2016.



                            1

The following information was filed by Allied World Assurance Co Holdings, Ag on Wednesday, February 1, 2017 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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