Market Overview

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

Share:

Gross Premiums Written up 20% through September 2012

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

View Comments and Join the Discussion!