PEMBROKE, Bermuda, Feb. 11 /PRNewswire-FirstCall/ -- Allied World
Assurance Company Holdings, Ltd (NYSE:AWH) today reported net
income of $161.3 million, or $3.05 per diluted share, for the
fourth quarter of 2009 compared to net income of $19.9 million, or
$0.39 per diluted share, for the fourth quarter of 2008. Net income
for the year ended December 31, 2009 was a record $606.9 million,
or $11.67 per diluted share, compared to net income of $183.6
million, or $3.59 per diluted share, for the year ended December
31, 2008. The company reported operating income of $131.9 million,
or $2.49 per diluted share, for the fourth quarter of 2009 compared
to operating income of $141.1 million, or $2.80 per diluted share,
for the fourth quarter of 2008. Operating income for the year ended
December 31, 2009 was a record $537.7 million, or $10.34 per
diluted share, compared to operating income of $455.1 million, or
$8.90 per diluted share, for the year ended December 31, 2008.
President and Chief Executive Officer Scott Carmilani commented,
"Despite the challenging market environment, I am very pleased to
report exceptional results to our shareholders for the fourth
quarter and full year 2009. Net income for 2009 exceeded $600
million for the first time in our company's history and our
operating return on shareholders' equity was a very impressive 20%
for the year. Our shareholders' equity base has grown to $3.2
billion, which is up 33% from the beginning of the year."
Underwriting Results Gross premiums written were $322.1 million in
the fourth quarter of 2009, a 3.6% increase compared to $310.9
million in the fourth quarter of 2008. For the year ended December
31, 2009, gross premiums written totaled $1,696.3 million, a 17.3%
increase compared to $1,445.6 million for the year ended December
31, 2008. Net premiums written were $233.7 million in the fourth
quarter of 2009, a 3.2% increase compared to $226.5 million in the
fourth quarter of 2008. For the year ended December 31, 2009, net
premiums written totaled $1,321.1 million, a 19.3% increase
compared to $1,107.2 million for the year ended December 31, 2008.
These increases were primarily due to the expansion of our U.S.
insurance business offset by our selectively paring back general
property, energy and professional liability risk in our
international insurance segment that did not meet our underwriting
requirements. Net premiums earned in the fourth quarter of 2009
were $330.5 million, a 9.1% increase compared to $303.0 million in
the fourth quarter of 2008. For the year ended December 31, 2009,
net premiums earned totaled $1,316.9 million, a 17.9% increase from
net premiums earned of $1,116.9 million for the year ended December
31, 2008. These increases were primarily due to the expansion of
our U.S. insurance business. The combined ratio was 76.2% in the
fourth quarter of 2009 compared to 75.9% in the fourth quarter of
2008. The loss and loss expense ratio was 42.8% in the fourth
quarter of 2009 compared to 47.4% in the fourth quarter of 2008.
During the fourth quarter of 2009, the company recorded net
favorable reserve development on prior loss years of $77.7 million,
a benefit of 23.5 percentage points to the company's loss and loss
expense ratio for the quarter. This compares to the fourth quarter
of 2008, where 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
that quarter. Absent prior year reserve adjustments, the loss and
loss expense ratio related to the fourth quarter of 2009 was 66.3%
compared to 77.2% for the fourth quarter of 2008. During the three
months ended December 31 2008, the company added $41.7 million to
its reserves related to Hurricanes Ike and Gustav. For the year
ended December 31, 2009, the combined ratio was 76.1% compared to
84.1% for the year ended December 31, 2008. For the year ended
December 31, 2009, the company recorded net favorable reserve
development on prior loss years of $248.0 million, a benefit of
18.8 percentage points to the company's loss and loss expense
ratio. For 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. The company's reported expense ratio was
33.4% and 30.2% for the fourth quarter and full year 2009,
respectively. These ratios were impacted by 3.6 percentage points
and 0.9 percentage points for the fourth quarter and full year
2009, respectively, due to the company recording $11.8 million
related to our reaching certain incentive based performance
hurdles. Absent this item, the company's expense ratios would have
been 29.8% and 29.3% for the fourth quarter and full year 2009,
respectively, which compare to the company's expense ratios for the
fourth quarter and full year 2008 of 28.5% and 26.7%, respectively.
Our overall staff count increased to over 650 as of December 31,
2009 from 560 as of December 31, 2008, primarily driven by the
additional staff in our U.S. insurance operations. As a result of
the increased staff count, salary and employee welfare costs
increased by $4.3 million and $48.3 million during the fourth
quarter and year ended December 31, 2009, respectively.
Amortization and Impairment of Intangible Assets At the end of
2009, we made a strategic decision to market all products, with a
few limited exceptions, under the Allied World brand instead of
under the Darwin Professional Underwriters, Inc. ("Darwin") brand.
We believe that Darwin related business will benefit from greater
access to markets under the Allied World brand, which is a more
internationally recognized brand. Accordingly, an impairment charge
of $6.9 million was incurred to write off the unamortized balance
of the trademark intangible asset acquired as part of the October
2008 acquisition of Darwin. Investment Results Net investment
income in the fourth quarter of 2009 was $73.3 million, a decrease
of 11.3% from the $82.6 million of net investment income in the
fourth quarter of 2008. The primary reason for the decrease was
that in the fourth quarter of 2008 the company received a $7.9
million dividend from a high-yield bond fund. For the year ended
December 31, 2009, net investment income was $300.7 million, a
decrease of 2.6% from the $308.8 million of net investment income
for the year ended December 31, 2008. The company recorded net
realized investment gains of $37.8 million and $126.4 million for
the three months and year ended December 31, 2009, respectively. As
of December 31, 2009 and December 31, 2008, net accumulated
unrealized gains were $149.8 million and $105.6 million,
respectively. The increase in net unrealized investment gains from
December 31, 2008 to December 31, 2009 was due to unrealized gains
in our fixed-maturity portfolio of $181.1 million primarily
resulting from the narrowing of credit spreads across all fixed
income classes partially offset by the cumulative effect adjustment
of $136.8 million related to the company adopting accounting
changes for investments in the second quarter of 2009.
Shareholders' Equity As of December 31, 2009, shareholders' equity
was $3.2 billion, an increase of 33% compared to $2.4 billion
reported as of December 31, 2008. The increase was primarily due to
strong underwriting results, prudent investment decisions and
benign catastrophe activity. The company's annualized net income
return on average shareholders' equity for the three months and
year ended December 31, 2009 was 21.7% and 22.6%, respectively. The
company's annualized operating return on average shareholders'
equity for the three months and year ended December 31, 2009 was
17.7% and 20.0%, respectively. As of December 31, 2009, diluted
book value per share was $59.56, an increase of 29.3% compared to
$46.05 as of December 31, 2008. Investment Supplement Allied World
will be providing additional information on its investment
portfolio as of December 31, 2009. This information will be
available at the "Investor Relations" section of the company's
website at http://www.awac.com/. Financial Supplement A financial
supplement relating to the fourth quarter of 2009 will be available
at the "Investor Relations" section of the company's website at
http://www.awac.com/. Conference Call Allied World will host a
conference call on Friday, February 12, 2010 at 8:30 a.m. (Eastern
Time) to discuss its fourth quarter and year ended December 31,
2009 financial results. The public may access a live webcast of the
conference call at the "Investor Relations" section of the
company's website at http://www.awac.com/. In addition, the
conference call can be accessed by dialing (866) 713-8310 (U.S. and
Canada callers) or (617) 597-5308 (international callers) and
entering the passcode 11691912 approximately ten minutes prior to
the call. Following the conclusion of the presentation, a replay of
the call will be available through Friday, February 26, 2010 by
dialing (888) 286-8010 (U.S. and Canada callers) or (617) 801-6888
(international callers) and entering the passcode 80525762. In
addition, the webcast will remain available online through Friday,
February 26, 2010 at http://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
("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, net impairment charges
recognized in earnings and net foreign exchange gain or loss. The
company excludes net realized investment gains or losses, net
impairment charges recognized in earnings and net foreign exchange
gain or loss 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, Europe, Hong
Kong, Singapore and the United States. 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 http://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 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, 2009 2008 2009 2008 ---- ---- ---- ---- Revenues: Gross
premiums written $322,129 $310,945 $1,696,345 $1,445,584 Premiums
ceded (88,435) (84,442) (375,220) (338,356) ------- -------
-------- -------- Net premiums written 233,694 226,503 1,321,125
1,107,228 Change in unearned premiums 96,787 76,481 (4,233) 9,677
------ ------ ------ ----- Net premiums earned 330,481 302,984
1,316,892 1,116,905 Net investment income 73,252 82,583 300,675
308,775 Net realized investment gains (losses) 37,796 (19,454)
126,352 (59,954) Net impairment charges recognized in earnings
(187) (100,593) (49,577) (212,897) Other income 373 746 1,506 746
--- --- ----- --- Total revenue 441,715 266,266 1,695,848 1,153,575
------- ------- --------- --------- Expenses: Net losses and loss
expenses 141,403 143,531 604,060 641,122 Acquisition costs 38,126
30,849 148,847 112,569 General and administrative expenses 72,212
55,405 248,592 185,850 Amortization and impairment of intangible
assets 7,856 710 11,051 710 Interest expense 9,527 10,205 39,019
38,743 Foreign exchange loss (gain) 1,408 1,230 748 (1,421) -----
----- --- ------ Total expenses 270,532 241,930 1,052,317 977,573
------- ------- --------- ------- Income before income taxes
171,183 24,336 643,531 176,002 Income tax expense (recovery) 9,928
4,484 36,644 (7,633) ----- ----- ------ ------ NET INCOME $161,255
$19,852 $606,887 $183,635 ======== ======= ======== ======== PER
SHARE DATA: Basic earnings per share $3.25 $0.40 $12.26 $3.75
Diluted earnings per share $3.05 $0.39 $11.67 $3.59 Weighted
average common shares outstanding 49,662,575 49,028,249 49,503,438
48,936,912 Weighted average common shares and common share
equivalents outstanding 52,880,733 50,366,814 51,992,674 51,147,215
Dividends declared per share $0.20 $0.18 $0.74 $0.72 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: 2009 2008 ---- ---- Fixed maturity investments
available for sale, at fair value (amortized cost: 2009:
$4,260,844; 2008: $5,872,031) $4,427,072 $6,032,029 Fixed maturity
investments trading, at fair value 2,544,322 - Other invested
assets trading, at fair value 184,869 69,902 Other invested assets
available for sale, at fair value (cost: 2009: nil; 2008: $89,229)
- 55,199 --- ------ Total investments 7,156,263 6,157,130 Cash and
cash equivalents 379,751 706,267 Securities lending collateral -
171,026 Insurance balances receivable 395,621 347,941 Prepaid
reinsurance 186,610 192,582 Reinsurance recoverable 919,991 888,314
Accrued investment income 53,046 50,671 Net deferred acquisition
costs 87,821 86,181 Goodwill 268,376 268,532 Intangible assets
60,359 71,410 Net balances receivable on purchases and sales of
investments 184 12,371 Net deferred tax assets 21,895 22,452 Other
assets 67,566 47,603 ------ ------ Total assets $9,597,483
$9,022,480 ---------- ---------- LIABILITIES: Reserve for losses
and loss expenses $4,761,772 $4,576,828 Unearned premiums 928,619
930,358 Reinsurance balances payable 102,837 95,129 Securities
lending payable - 177,010 Syndicated loan - 243,750 Senior notes
498,919 498,796 Accounts payable and accrued liabilities 92,041
83,747 ------ ------ Total liabilities $6,384,188 $6,605,618
---------- ---------- SHAREHOLDERS' EQUITY: Common shares, par
value $0.03 per share: issued and outstanding 2009: 49,734,487;
2008: 49,036,159 shares $1,492 $1,471 Additional paid-in capital
1,359,934 1,314,785 Retained earnings 1,702,020 994,974 Accumulated
other comprehensive income, net of tax 149,849 105,632 -------
------- Total shareholders' equity $3,213,295 $2,416,862 ----------
---------- Total liabilities and shareholders' equity $9,597,483
$9,022,480 ========== ========== ALLIED WORLD ASSURANCE COMPANY
HOLDINGS, LTD UNAUDITED CONSOLIDATED SEGMENT DATA (Expressed in
thousands of United States dollars, except for ratio information)
Quarter Ended U.S. International December 31, 2009 Insurance
Insurance Reinsurance Total ------------------ --------- ---------
----------- ----- Gross premiums written $169,116 $130,272 $22,741
$322,129 Net premiums written 123,155 87,827 22,712 233,694 Net
premiums earned 119,641 92,464 118,376 330,481 Other income 373 - -
373 Net losses and loss expenses (68,273) (16,467) (56,663)
(141,403) Acquisition costs (15,806) 501 (22,821) (38,126) General
and administrative expenses (32,474) (25,791) (13,947) (72,212)
------- ------- ------- ------- Underwriting income 3,461 50,707
24,945 79,113 Net investment income 73,252 Net realized investment
gains 37,796 Net impairment charges recognized in earnings (187)
Amortization and impairment of intangible assets (7,856) Interest
expense (9,527) Foreign exchange loss (1,408) ------ Income before
income taxes $171,183 ======== GAAP Ratios: Loss and loss expense
ratio 57.1% 17.8% 47.9% 42.8% Acquisition cost ratio 13.2% (0.5%)
19.3% 11.5% General and administrative expense ratio 27.1% 27.9%
11.8% 21.9% ---- ---- ---- ---- Combined ratio 97.4% 45.2% 79.0%
76.2% ==== ==== ==== ==== Quarter Ended U.S. International December
31, 2008 Insurance Insurance Reinsurance Total ------------------
--------- --------- ----------- ----- Gross premiums written
$153,671 $147,025 $10,249 $310,945 Net premiums written 108,541
107,833 10,129 226,503 Net premiums earned 86,060 115,434 101,490
302,984 Other income 746 - - 746 Net losses and loss expenses
(34,572) (47,136) (61,823) (143,531) Acquisition costs (9,363)
(1,525) (19,961) (30,849) General and administrative expenses
(27,359) (16,399) (11,647) (55,405) ------- ------- ------- -------
Underwriting income 15,512 50,374 8,059 73,945 Net investment
income 82,583 Net realized investment losses (19,454) Net
impairment charges recognized in earnings (100,593) Amortization
and impairment of intangible assets (710) Interest expense (10,205)
Foreign exchange loss (1,230) ------ Income before income taxes
$24,336 ======= GAAP Ratios: Loss and loss expense ratio 40.2%
40.8% 60.9% 47.4% Acquisition cost ratio 10.9% 1.3% 19.7% 10.2%
General and administrative expense ratio 31.8% 14.2% 11.5% 18.3%
---- ---- ---- ---- Combined ratio 82.9% 56.3% 92.1% 75.9% ====
==== ==== ==== ALLIED WORLD ASSURANCE COMPANY HOLDINGS, LTD
UNAUDITED CONSOLIDATED SEGMENT DATA (Expressed in thousands of
United States dollars, except for ratio information) Year Ended
U.S. International December 31, 2009 Insurance Insurance
Reinsurance Total ------------------ --------- ---------
----------- ----- Gross premiums written $674,826 $555,944 $465,575
$1,696,345 Net premiums written 493,067 362,893 465,165 1,321,125
Net premiums earned 447,491 413,170 456,231 1,316,892 Other income
1,506 - - 1,506 Net losses and loss expenses (211,363) (158,062)
(234,635) (604,060) Acquisition costs (58,114) (2,742) (87,991)
(148,847) General and administrative expenses (115,797) (84,390)
(48,405) (248,592) -------- ------- ------- -------- Underwriting
income 63,723 167,976 85,200 316,899 Net investment income 300,675
Net realized investment gains 126,352 Net impairment charges
recognized in earnings (49,577) Amortization and impairment of
intangible assets (11,051) Interest expense (39,019) Foreign
exchange loss (748) ---- Income before income taxes $643,531
======== GAAP Ratios: Loss and loss expense ratio 47.2% 38.3% 51.4%
45.9% Acquisition cost ratio 13.0% 0.7% 19.3% 11.3% General and
administrative expense ratio 25.9% 20.4% 10.6% 18.9% ---- ---- ----
---- Combined ratio 86.1% 59.4% 81.3% 76.1% ==== ==== ==== ====
Year Ended December U.S. International 31, 2008 Insurance Insurance
Reinsurance Total ------------------- --------- ---------
----------- ----- Gross premiums written $319,985 $695,459 $430,140
$1,445,584 Net premiums written 212,978 465,869 428,381 1,107,228
Net premiums earned 179,818 472,550 464,537 1,116,905 Other income
746 - - 746 Net losses and loss expenses (103,363) (288,620)
(249,139) (641,122) Acquisition costs (17,832) (3,774) (90,963)
(112,569) General and administrative expenses (66,810) (75,490)
(43,550) (185,850) ------- ------- ------- -------- Underwriting
(loss) income (7,441) 104,666 80,885 178,110 Net investment income
308,775 Net realized investment losses (59,954) Net impairment
charges recognized in earnings (212,897) Amortization and
impairment of intangible assets (710) Interest expense (38,743)
Foreign exchange gain 1,421 ----- Income before income taxes
$176,002 ======== GAAP Ratios: Loss and loss expense ratio 57.5%
61.1% 53.6% 57.4% Acquisition cost ratio 9.9% 0.8% 19.6% 10.1%
General and administrative expense ratio 37.2% 16.0% 9.4% 16.6%
---- ---- --- ---- Combined ratio 104.6% 77.9% 82.6% 84.1% =====
==== ==== ==== 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 December 31, Year Ended December 31, 2009 2008 2009
2008 ---- ---- ---- ---- Net income $161,255 $19,852 $606,887
$183,635 Net realized investment (gains) losses (37,796) 19,454
(126,352) 59,954 Net impairment charges recognized in earnings 187
100,593 49,577 212,897 Impairment of intangible assets 6,866 -
6,866 - Foreign exchange loss (gain) 1,408 1,230 748 (1,421) -----
----- --- ------ Operating income $131,920 $141,129 $537,726
$455,065 ======== ======== ======== ======== Weighted average
common shares outstanding: Basic 49,662,575 49,028,249 49,503,438
48,936,912 Diluted 52,880,733 50,366,814 51,992,674 51,147,215
Basic per share data: Net income $3.25 $0.40 $12.26 $3.75 Net
realized investment (gains) losses (0.76) 0.40 (2.55) 1.23 Net
impairment charges recognized in earnings - 2.05 1.00 4.35
Impairment of intangible assets 0.14 - 0.14 - Foreign exchange loss
(gain) 0.03 0.03 0.01 (0.03) ---- ---- ---- ----- Operating income
$2.66 $2.88 $10.86 $9.30 ===== ===== ====== ===== Diluted per share
data Net income $3.05 $0.39 $11.67 $3.59 Net realized investment
(gains) losses (0.72) 0.39 (2.43) 1.17 Net impairment charges
recognized in earnings - 2.00 0.96 4.16 Impairment of intangible
assets 0.13 - 0.13 - Foreign exchange loss (gain) 0.03 0.02 0.01
(0.02) ---- ---- ---- ----- Operating income $2.49 $2.80 $10.34
$8.90 ===== ===== ====== ===== 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, 2009 2008
---------- ---------- Price per share at period end $46.07 $40.60
Total shareholders' equity 3,213,295 2,416,862 Basic common shares
outstanding 49,734,487 49,036,159 Add: unvested restricted share
units 915,432 971,907 Add: Performance based equity awards
1,583,237 1,345,903 Add: dilutive options/warrants outstanding
6,805,157 6,371,151 Weighted average exercise price per share 34.44
33.38 Deduct: options bought back via treasury method (5,087,405)
(5,237,965) ---------- ---------- Common shares and common share
equivalents outstanding 53,950,908 52,487,155 Basic book value per
common share $64.61 $49.29 Diluted book value per common share
$59.56 $46.05 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 December 31, Year Ended
December 31, 2009 2008 2009 2008 ---- ---- ---- ---- Opening
shareholders' equity $3,078,894 $2,272,828 $2,416,862 $2,239,842
Deduct/Add: accumulated other comprehensive (income) loss (185,043)
19,775 (105,632) (136,214) -------- ------ -------- --------
Adjusted opening shareholders' equity 2,893,851 2,292,603 2,311,230
2,103,628 Closing shareholders' equity $3,213,295 $2,416,862
$3,213,295 $2,416,862 Deduct: accumulated other comprehensive
income (149,849) (105,632) (149,849) (105,632) -------- --------
-------- -------- Adjusted closing shareholders' equity 3,063,446
2,311,230 3,063,446 2,311,230 Average shareholders' equity
$2,978,649 $2,301,917 $2,687,338 $2,207,429 ========== ==========
========== ========== Net income available to shareholders $161,255
$19,852 $606,887 $183,635 Annualized net income available to
shareholders 645,020 79,408 606,887 183,635 Annualized return on
average shareholders' equity -net income available to shareholders
21.7% 3.4% 22.6% 8.3% ==== === ==== === Operating income available
to shareholders $131,920 $141,129 $537,726 $455,065 Annualized
operating income available to shareholders 527,680 564,516 537,726
455,065 Annualized return on average shareholders' equity -
operating income available to shareholders 17.7% 24.5% 20.0% 20.6%
==== ==== ==== ==== DATASOURCE: Allied World Assurance Company, Ltd
CONTACT: Media, Faye Cook, Vice President, Marketing &
Communications, +1-441-278-5406, , or Investors, Keith J. Lennox,
Investor Relations Officer, +1-646-794-0750, Web Site:
http://www.awac.com/
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