Allied World Assurance Co Holdings, AG - FORM 8-K - EX-99.1 - PRESS RELEASE

Attached files

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EX-99.2 - FINANCIAL SUPPLEMENT - Allied World Assurance Co Holdings, AG	awh-20160719x8kexhibit992.htm
8-K - 8-K - Allied World Assurance Co Holdings, AG	form8-kx2q2016earningsrele.htm

Exhibit 99.1

ALLIED WORLD REPORTS A 92.5% COMBINED RATIO FOR THE SECOND QUARTER 2016


•	Annualized return on average equity of 17.2%


•	Growth in basic book value per share of 4.1%


•	Repurchase of $90 million of common shares during the quarter


•	Net catastrophe losses of $20.9 million during the quarter due to the April hailstorm in Texas and the Fort McMurray wildfires during May

ZUG, Switzerland -- (BUSINESS WIRE) -- Allied World Assurance Company Holdings, AG (NYSE: AWH) today reported net income of $153.4 million, or $1.70per diluted share, for the second quarter of 2016, compared to net income of $9.5 million, or $0.10 per diluted share, for the second quarter of 2015.

The company reported operating income of $82.7 million, or $0.91 per diluted share, for the second quarter of 2016, compared to operating income of $25.8 million, or $0.27 per diluted share, for the second quarter of 2015.

“I am very pleased with our results this quarter, which were attributable to strong performances across both the underwriting and investment portfolios," commented President and Chief Executive Officer, Scott Carmilani. “In particular, with a combined ratio of 92.3%, our North American Insurance business is showing the strength and results of our focused build out.”

Second Quarter Summary (Unaudited)



(Expressed in millions of U.S. dollars,	Three Months Ended June 30,
except per share amounts)			Diluted per share
	2016	2015	2016	2015

Net income	$153.4	$9.5	$1.70	$0.10
Add pre-tax effect of:
Net realized investment (gains) losses	(74.5)	20.1	(0.83)	0.21
Foreign exchange (gain) loss	(2.9)	1.3	(0.03)	0.01
Income tax expense (benefit)	6.7	(5.1)	0.07	(0.05)
Operating income	$82.7	$25.8	$0.91	$0.27

Second Quarter Operating Results


•	Gross premiums written were $800.3 million, a 3.1% decrease, compared to $826.0 million in the second quarter of 2015 as all three segments declined.


◦	The North American Insurance segment decreased 1.8% to $508.4 million, led by declines in property and casualty, partially offset by growth in programs and other specialty lines.


◦	The Global Markets Insurance segment decreased 7.1% to $125.4 million, driven by reductions across multiple lines in the European business, as conditions remain challenging in that region, but partially offset by an increase in the Asia Pacific business.


◦	The Reinsurance segment decreased 4.0% to $166.5 million, driven by declines in property.

•

The company experienced $20.9 million, or 3.5 points, of catastrophe losses in the second quarter of 2016, compared to $25.0 million, or 3.9 points, in the second quarter of 2015. Within the Reinsurance segment, losses of $6.0 million arose from the April hailstorm in Texas and losses of $10.3 million arose from the Fort McMurray wildfires. Within the North American Insurance segment, losses of $4.6 million arose from the April hailstorm in Texas.


•	Underwriting income was $45.4 million, compared to underwriting income of $5.9 million in the second quarter of 2015.


•	The combined ratio was 92.5%, compared to 99.2% in the second quarter of 2015.

•

The loss and loss expense ratio was 60.6% in the second quarter of 2016, compared to 66.8% in the prior year quarter. During the second quarter of 2016, the company recorded net favorable reserve development on prior loss years of $37.8 million, a benefit of 6.3 percentage points to the loss and loss expense ratio, compared to $21.8 million a year ago, a benefit of 3.4 percentage points. All three segments benefited from net favorable reserve development this quarter.


•	The company's expense ratio was 31.8% for the second quarter of 2016, compared to 32.4% for the second quarter of 2015. This improvement was largely driven by the lower acquisition cost ratio in the Global Markets Insurance segment.

Investment Results


•	The total financial statement return on the company's investment portfolio for the three months ended June 30, 2016 was 1.4%, compared to 0.3% for the three months ended June 30, 2015.


•	Net investment income increased 30.6% compared to the prior year quarter as a result of positive contributions across most components, including fixed maturity investments, hedge funds and private equity and Allied World Financial Services.


•	Net realized gains of $74.5 million were a significant contributor to the total return as compared to the prior year period, when rising bond yields in the fixed income portfolio drove net realized losses of $20.2 million for the second quarter of 2015.


•	See the table below for the components of our investment returns:



(Expressed in millions of U.S. dollars,	Three Months Ended June 30,
except percentages)	2016			2015
Net investment income		$55.8			$42.8
Net realized investment gains (losses)		74.5			(20.2)
Total financial statement portfolio return		$130.3			$22.6

Average invested assets, at fair value		$9,337.6			$8,601.8
Financial statement portfolio return		1.4	%		0.3	%

Note: Net investment income, realized gains and unrealized gains are disclosed on a pre-tax basis.

Shareholders' Equity


•	As of June 30, 2016, the company’s total shareholders' equity was $3,584.5 million, compared to $3,535.5 million as of March 31, 2016.


•	As of June 30, 2016, basic book value per share was $40.98, an increase of 4.1% compared to $39.35 as of March 31, 2016, and an increase of 5.5% compared to $38.84 as of December 31, 2015.


•	As of June 30, 2016, diluted book value per share was $39.70, an increase of 4.1%, compared to $38.13 as of March 31, 2016, and an increase of 5.1%, compared to $37.78 as of December 31, 2015.


•	As of June 30, 2016, diluted tangible book value per share was $34.10, an increase of 4.3%, compared to $32.68 as of March 31, 2016, and an increase of 5.3%, compared to $32.38 as of December 31, 2015.

Capital Management

•

Through July 19, 2016, year to date, the company repurchased a total of 4,427,396 of its common shares for an aggregate cost of $156.7 million at an average price of $35.39 per share. This includes 2,491,355 common shares for an aggregate cost of $90 million purchased during the second quarter and an additional 475,153 common shares at an aggregate cost of $16.7 million purchased to date during the third quarter.


•	As of July 19, 2016, the company had $410 million remaining on its outstanding share repurchase authorization.


•	In April 2016, the company’s shareholders approved four quarterly dividends equal to $0.26 per share. The first dividend was paid on June 30, 2016.

Supplementary Information

Allied World has provided a Financial Supplement as of June 30, 2016. This information is available in the "Investors" section of the company's website at www.awac.com.

Conference Call

Allied World will host a conference call on Wednesday, July 20, 2016 at 9:00 a.m. (Eastern Time) to discuss the results of the second quarter ended June 30, 2016. The public may access a live webcast of the conference call at the "Investors" section of the company's website at www.awac.com. In addition, the conference call can be accessed by dialing 1 (888) 771-4371 (U.S. callers) or 1 (847) 585-4405 (international callers) and entering the passcode 42758001 approximately ten minutes prior to the call.

A replay of the call will be available through Friday, August 20, 2016 by dialing 1 (888) 843-7419 (U.S. callers) and entering the passcode 42758001.

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 foreign exchange gain or loss, and other non-recurring items. The company excludes net realized investment gains or losses, 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.

"Annualized return on average shareholders' equity" ("ROAE") is calculated using average shareholders’ equity, excluding the average after tax other comprehensive income or loss, which may include unrealized gains (losses) on investments or currency translation adjustments. 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 amounts 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 or currency translation adjustments. Unrealized gains (losses) are excluded from equity for the reasons outlined in the ROAE explanation above.

"Tangible shareholders' equity and diluted book value per share" is calculated using total shareholders' equity excluding goodwill and intangible assets, because it represents a more liquid measure of the company's net assets than total shareholders' equity. The company also 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.

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

About Allied World

Allied World Assurance Company Holdings, AG, through its subsidiaries and brand known as Allied World, is a global provider of innovative property, casualty and specialty insurance and reinsurance solutions. Allied World offers 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 AA- by Fitch.

Please visit the following for further information on Allied World: Web: www.awac.com | Facebook: www.facebook.com/alliedworld | LinkedIn: https://www.linkedin.com/company/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 adequacy of our loss reserves; negative rating agency actions; greater frequency or severity of unpredictable catastrophic events; the impact of acts of terrorism and acts of war; 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)

			Three Months Ended June 30,				Six Months Ended June 30,
			2016		2015		2016		2015

Revenues:
	Gross premiums written		$	800,294	$	825,970	$	1,663,839	$	1,706,584
	Premiums ceded			(222,157)		(222,301)		(381,656)		(330,387)

	Net premiums written			578,137		603,669		1,282,183		1,376,197
	Change in unearned premiums			24,831		42,707		(99,093)		(161,273)
	Net premiums earned			602,968		646,376		1,183,090		1,214,924

	Net investment income			55,839		42,760		109,092		87,311
	Net realized investment gains (losses)			74,493		(20,182)		93,351		24,843
	Other income			5,177		924		5,742		1,778
		Total revenues		738,477		669,878		1,391,275		1,328,856
Expenses:
	Net losses and loss expenses			365,443		431,521		737,809		756,697
	Acquisition costs			87,403		100,618		175,711		179,317
	General and administrative expenses			104,729		108,363		201,081		205,501
	Other expenses			1,682		1,235		2,816		3,058
	Amortization of intangible assets			2,501		2,819		5,001		3,452
	Interest expense			19,879		14,466		39,828		28,803
	Foreign exchange (gain) loss			(2,887)		1,265		(5,898)		11,162
		Total expenses		578,750		660,287		1,156,348		1,187,990
Income before income taxes				159,727		9,591		234,927		140,866
		Income tax expense		6,317		133		7,418		7,052
NET INCOME			$	153,410	$	9,458	$	227,509	$	133,814

PER SHARE DATA:
		Basic earnings per share	$	1.73	$	0.10	$	2.54	$	1.42
		Diluted earnings per share	$	1.70	$	0.10	$	2.50	$	1.40

		Weighted average common shares outstanding		88,742,484		92,441,730		89,495,564		94,178,989
		Weighted average common shares and common share equivalents outstanding		90,040,509		93,984,226		90,830,814		95,830,455

		Dividends paid per share	$	0.260	$	0.225	$	0.520	$	0.450



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
	June 30,		December 31,
ASSETS:	2016		2015
Fixed maturity investments trading, at fair value	$	7,794,198	$	7,201,538
Equity securities trading, at fair value		202,331		403,022
Other invested assets		939,771		966,709

Total investments		8,936,300		8,571,269
Cash and cash equivalents		662,713		668,612
Insurance balances receivable		960,978		745,888
Funds held		279,136		640,819
Prepaid reinsurance		430,071		392,265
Reinsurance recoverable		1,516,741		1,479,959
Reinsurance recoverable on paid losses		73,809		96,437
Accrued investment income		38,739		38,304
Net deferred acquisition costs		168,918		165,206
Goodwill		392,643		388,127
Intangible assets		113,473		116,623
Balances receivable on sale of investments		114,602		36,889
Net deferred tax assets		21,208		24,401
Other assets		158,023		147,149

Total assets	$	13,867,354	$	13,511,948

LIABILITIES:
Reserve for losses and loss expenses	$	6,623,152	$	6,456,156
Unearned premiums		1,822,074		1,683,274
Reinsurance balances payable		227,693		214,369
Balances due on purchases of investments		155,016		125,126
Senior notes		1,293,703		1,292,907
Other long-term debt		23,122		23,033
Accounts payable and accrued liabilities		138,142		184,541
Total liabilities		10,282,902		9,979,406

SHAREHOLDERS' EQUITY:
Common shares: 2016 and 2015: par value CHF 4.10 per share (2016: 93,586,418; 2015: 95,523,230 shares issued and 2016: 87,463,950; 2015: 90,959,635 shares outstanding)	$	366,726	$	386,702
Treasury shares, at cost (2016: 6,122,468; 2015: 4,563,595)		(216,710)		(155,072	)
Accumulated other comprehensive loss		(6,024)		(9,297	)
Retained earnings		3,440,460		3,310,209
Total shareholders' equity	$	3,584,452	$	3,532,542

Total liabilities and shareholders' equity	$	13,867,354	$	13,511,948



ALLIED WORLD ASSURANCE COMPANY HOLDINGS, AG
UNAUDITED CONSOLIDATED SEGMENT DATA
(Expressed in thousands of United States dollars, except for ratio information)

	North American			Global Markets
Three Months Ended June 30, 2016	Insurance			Insurance			Reinsurance			Total

Gross premiums written	$	508,382		$	125,436		$	166,476		$	800,294
Net premiums written		330,766			88,223			159,148			578,137
Net premiums earned		329,642			94,156			179,170			602,968
Net losses and loss expenses		(209,943)			(61,091)			(94,409)			(365,443)
Acquisition costs		(37,435)			(16,270)			(33,698)			(87,403)
General and administrative expenses		(56,840)			(31,528)			(16,361)			(104,729)
Underwriting (loss) income		25,424			(14,733)			34,702			45,393
Other insurance-related income		914			—			4,263			5,177
Other insurance-related expenses		(599)			—			(1,083)			(1,682)
Segment (loss) income		25,739			(14,733)			37,882			48,888
Net investment income											55,839
Net realized investment gains											74,493
Amortization of intangible assets											(2,501)
Interest expense											(19,879)
Foreign exchange gain											2,887
Income before income taxes										$	159,727

GAAP Ratios:
Loss and loss expense ratio		63.7	%		64.9	%		52.7	%		60.6	%
Acquisition cost ratio		11.4	%		17.3	%		18.8	%		14.5	%
General and administrative expense ratio		17.2	%		33.5	%		9.1	%		17.4	%
Expense ratio		28.6	%		50.8	%		27.9	%		31.9	%
Combined ratio		92.3	%		115.7	%		80.6	%		92.5	%

	North American			Global Markets
Three Months Ended June 30, 2015	Insurance			Insurance			Reinsurance			Total

Gross premiums written	$	517,483		$	134,997		$	173,490		$	825,970
Net premiums written		372,193			69,260			162,216			603,669
Net premiums earned		328,541			102,626			215,209			646,376
Net losses and loss expenses		(237,747)			(65,754)			(128,020)			(431,521)
Acquisition costs		(34,201)			(24,337)			(42,080)			(100,618)
General and administrative expenses		(58,144)			(30,724)			(19,495)			(108,363)
Underwriting (loss) income		(1,551)			(18,189)			25,614			5,874
Other insurance-related income		924			—			—			924
Other insurance-related expenses		(591)			(644)			—			(1,235)
Segment (loss) income		(1,218)			(18,833)			25,614			5,563
Net investment income											42,760
Net realized investment losses											(20,182)
Amortization of intangible assets											(2,819)
Interest expense											(14,466)
Foreign exchange loss											(1,265)
Income before income taxes										$	9,591

GAAP Ratios:
Loss and loss expense ratio		72.4	%		64.1	%		59.5	%		66.8	%
Acquisition cost ratio		10.4	%		23.7	%		19.6	%		15.6	%
General and administrative expense ratio		17.7	%		29.9	%		9.1	%		16.8	%
Expense ratio		28.1	%		53.6	%		28.7	%		32.4	%
Combined ratio		100.5	%		117.7	%		88.2	%		99.2	%



ALLIED WORLD ASSURANCE COMPANY HOLDINGS, AG
UNAUDITED CONSOLIDATED SEGMENT DATA
(Expressed in thousands of United States dollars, except for ratio information)

	North American			Global Markets
Six Months Ended June 30, 2016	Insurance			Insurance			Reinsurance			Total

Gross premiums written	$	887,565		$	240,964		$	535,310		$	1,663,839
Net premiums written		597,013			175,835			509,335			1,282,183
Net premiums earned		645,911			188,364			348,815			1,183,090
Net losses and loss expenses		(426,161)			(128,890)			(182,758)			(737,809)
Acquisition costs		(71,319)			(34,176)			(70,216)			(175,711)
General and administrative expenses		(109,009)			(60,557)			(31,515)			(201,081)
Underwriting income (loss)		39,422			(35,259)			64,326			68,489
Other insurance-related income		1,479			—			4,263			5,742
Other insurance-related expenses		(1,305)			(5)			(1,506)			(2,816)
Segment income (loss)		39,596			(35,264)			67,083			71,415
Net investment income											109,092
Net realized investment gains											93,351
Amortization of intangible assets											(5,001)
Interest expense											(39,828)
Foreign exchange gain											5,898
Income before income taxes										$	234,927

GAAP Ratios:
Loss and loss expense ratio		66.0	%		68.4	%		52.4	%		62.4	%
Acquisition cost ratio		11.0	%		18.1	%		20.1	%		14.9	%
General and administrative expense ratio		16.9	%		32.1	%		9.0	%		17.0	%
Expense ratio		27.9	%		50.2	%		29.1	%		31.9	%
Combined ratio		93.9	%		118.6	%		81.5	%		94.3	%

	North American			Global Markets
Six Months Ended June 30, 2015	Insurance			Insurance			Reinsurance			Total

Gross premiums written	$	898,249		$	195,559		$	612,776		$	1,706,584
Net premiums written		669,075			112,155			594,967			1,376,197
Net premiums earned		641,511			152,666			420,747			1,214,924
Net losses and loss expenses		(433,226)			(86,264)			(237,207)			(756,697)
Acquisition costs		(65,233)			(31,345)			(82,739)			(179,317)
General and administrative expenses		(117,432)			(48,749)			(39,320)			(205,501)
Underwriting income (loss)		25,620			(13,692)			61,481			73,409
Other insurance-related income		1,778			—			—			1,778
Other insurance-related expenses		(1,445)			(1,613	)		—			(3,058)
Segment income (loss)		25,953			(15,305)			61,481			72,129
Net investment income											87,311
Net realized investment gains											24,843
Amortization of intangible assets											(3,452)
Interest expense											(28,803)
Foreign exchange loss											(11,162)
Income before income taxes										$	140,866

GAAP Ratios:
Loss and loss expense ratio		67.5	%		56.5	%		56.4	%		62.3	%
Acquisition cost ratio		10.2	%		20.5	%		19.7	%		14.8	%
General and administrative expense ratio		18.3	%		31.9	%		9.3	%		16.9	%
Expense ratio		28.5	%		52.4	%		29.0	%		31.7	%
Combined ratio		96.0	%		108.9	%		85.4	%		94.0	%



ALLIED WORLD ASSURANCE COMPANY HOLDINGS, AG
UNAUDITED OPERATING INCOME RECONCILIATION
(Expressed in thousands of United States dollars, except share and per share amounts)


		Three Months Ended June 30,				Six Months Ended June 30,
		2016		2015		2016		2015

Net income		$	153,410	$	9,458	$	227,509	$	133,814
Add pre-tax effect of:
	Net realized investment (gains) losses		(74,493)		20,182		(93,351)		(24,843)
	Foreign exchange (gain) loss		(2,887)		1,265		(5,898)		11,162
Income tax expense (benefit)⁽¹⁾			6,651		(5,070)		13,430		(2,617)
Operating income		$	82,681	$	25,835	$	141,690	$	117,516

Weighted average common shares outstanding:
Basic			88,742,484		92,441,730		89,495,564		94,178,989
Diluted			90,040,509		93,984,226		90,830,814		95,830,455

Basic per share data:
Net income		$	1.73		0.10	$	2.54	$	1.42
Add pre-tax effect of:
	Net realized investment (gains) losses		(0.84)		0.22		(1.04)		(0.26)
	Foreign exchange (gain) loss		(0.03)		0.02		(0.07)		0.12
Income tax expense (benefit)⁽¹⁾			0.07		(0.06)		0.15		(0.03	)
Operating income		$	0.93	$	0.28	$	1.58	$	1.25

Diluted per share data:
Net income		$	1.70	$	0.10	$	2.50	$	1.40
Add pre-tax effect of:
	Net realized investment (gains) losses		(0.83)		0.21		(1.03)		(0.26)
	Foreign exchange (gain) loss		(0.03)		0.01		(0.06)		0.12
Income tax expense (benefit)⁽¹⁾			0.07		(0.05)		0.15		(0.03	)
Operating income		$	0.91	$	0.27	$	1.56	$	1.23

⁽¹⁾ Represents the tax expense or benefit associated with the specific country to which the pre-tax adjustment related to.



ALLIED WORLD ASSURANCE COMPANY HOLDINGS, AG
UNAUDITED ANNUALIZED RETURN ON SHAREHOLDERS' EQUITY RECONCILIATION
(Expressed in thousands of United States dollars, except for percentage information)

	Three Months Ended June 30,						Six Months Ended June 30,
	2016			2015			2016			2015

Opening shareholders' equity	$	3,535,463		$	3,829,067		$	3,532,542		$	3,778,291
Deduct: accumulated other comprehensive income		6,168			—			9,297			—
Adjusted opening shareholders' equity		3,541,631			3,829,067			3,541,839			3,778,291

Closing shareholders' equity	$	3,584,452		$	3,624,801		$	3,584,452		$	3,624,801
Add: accumulated other comprehensive income		6,024			3,272			6,024			3,272
Adjusted closing shareholders' equity		3,590,476			3,628,073			3,590,476			3,628,073

Average shareholders' equity	$	3,566,054		$	3,728,570		$	3,566,158		$	3,703,182

Net income available to shareholders	$	153,410		$	9,458		$	227,509		$	133,814
Annualized net income available to shareholders		613,640			37,832			455,018			267,628

Annualized return on average shareholders' equity -
net income available to shareholders		17.2	%		1.0	%		12.8	%		7.2	%

Operating income available to shareholders	$	82,681		$	25,835		$	141,690		$	117,516
Annualized operating income available to shareholders		330,724			103,340			283,380			235,032

Annualized return on average shareholders' equity -
operating income available to shareholders		9.3	%		2.8	%		7.9	%		6.3	%



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
	June 30,		March 31,		December 31,
	2016		2016		2015
Price per share at period end	$	35.14	$	34.94	$	37.19

Total shareholders' equity	$	3,584,452	$	3,535,463	$	3,532,542
Deduct:
Goodwill		392,643		389,695		388,127
Intangible assets		113,473		115,719		116,623
Total tangible shareholders' equity	$	3,078,336	$	3,030,049	$	3,027,792

Basic common shares outstanding		87,463,950		89,840,448		90,959,635

Add: unvested restricted share units		1,215,116		1,243,533		819,309

Add: performance based equity awards		594,240		595,572		591,683

Add: employee share purchase plan		62,451		38,885		53,514

Add: dilutive options outstanding		1,833,830		1,947,836		1,968,607
Weighted average exercise price per share	$	16.96	$	16.88	$	16.87
Deduct: options bought back via treasury method		(885,060)		(941,259)		(892,993)

Common shares and common share equivalents outstanding		90,284,527		92,725,015		93,499,755

Basic book value per common share	$	40.98	$	39.35	$	38.84
Diluted book value per common share	$	39.70	$	38.13	$	37.78

Basic tangible book value per common share	$	35.20	$	33.73	$	33.29
Diluted tangible book value per common share	$	34.10	$	32.68	$	32.38

Faye Cook

Senior Vice President, Marketing & Communications

+1-441-278-5406

Faye.Cook@awac.com

Investors:

Sarah Doran

Senior Vice President, Investor Relations and Treasurer

+1-646-794-0590

Sarah.Doran@awac.com

Website: www.awac.com

Allied World Assurance Co Holdings, AG - FORM 8-K - EX-99.1 - PRESS RELEASE - July 19, 2016

Attached files

Allied World Assurance Co Holdings, AG Reports