• Full year combined ratio of 95.1% and underwriting income of $120.4 million
• Record full year gross premiums written of $3.1 billion and net premiums earned of $2.5 billion, an increase of 5.4% and 14.0%, respectively, compared to the prior year
• In October, the company issued $500 million of 4.35% senior notes due in 2025 to refinance the existing $500 million of 7.50% senior notes due in August 2016
• During the fourth quarter, the company completed the purchase price adjustments related to the Asian acquisitions. The final purchase price of the acquisitions is $176 million, down 18% from the $215 million at announcement in August 2014 due to currency movements and other purchase price adjustments

ZUG, Switzerland--(BUSINESS WIRE)-- Allied World Assurance Company Holdings, AG (NYSE: AWH) today reported net income of $1.7 million, or $0.02 per diluted share, for the fourth quarter of 2015 compared to net income of $130.5 million, or $1.33 per diluted share, for the fourth quarter of 2014. Net income for the year ended December 31, 2015 was $83.9 million, or $0.89 per diluted share, compared to net income of $490.3 million, or $4.92 per diluted share, for the year ended December 31, 2014.

The company reported operating income of $43.0 million, or $0.47 per diluted share, for the fourth quarter of 2015, compared to operating income of $148.5 million, or $1.51 per diluted share, for the fourth quarter of 2014. Operating income for the year ended December 31, 2015 was $212.0 million, or $2.25 per diluted share, compared to operating income of $415.1 million, or $4.17 per diluted share, for the year ended December 31, 2014.

President and Chief Executive Officer Scott Carmilani commented, "2015 was a challenging year, marked by a difficult underwriting environment and financial market volatility. With the close of the Asian acquisitions and targeted growth in our insurance segments, I believe our franchise is well positioned. We look forward to creating and capitalizing on profitable opportunities in 2016."

				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
				2015			2014			2015			2014			2015			2014				2015			2014
Net income				$	1.7		$	130.5		$	0.02		$	1.33		$	83.9		$	490.3			$	0.89		$	4.92
Adjusted for after tax effect of:
Net realized investment losses (gains)					40.4			18.0			0.44			0.18			116.8			(76.2	)			1.24			(0.76	)
Foreign exchange loss					0.9			0.0			0.01			0.00			11.3			1.0				0.12			0.01
Operating income				$	43.0		$	148.5		$	0.47		$	1.51		$	212.0		$	415.1			$	2.25		$	4.17

Fourth Quarter Operating Results

• Gross premiums written were $632.4 million, an 11.8% increase compared to $565.7 million in the fourth quarter of 2014. This was driven by growth in the Global Markets Insurance and North American Insurance segments, offset by a decrease in the Reinsurance segment.
  • While the fourth quarter is the smallest quarter for the Reinsurance segment, it decreased by 44.8% largely due to the non-renewal of several property and casualty treaties.
  • The Global Markets Insurance segment grew by 75.4%, almost exclusively as a result of the inclusion of the acquired Asian operations.
  • The North American Insurance segment grew by 5.9% driven by professional liability, programs, and specialty and other, offset by a continued decrease in healthcare of 23.8%.
• Net premiums earned were $622.8 million, an 8.6% increase compared to $573.5 million in the fourth quarter of 2014.
• The company did not experience any reportable catastrophe losses in the fourth quarter of 2015. This compares to $22.0 million of catastrophe losses in the fourth quarter of 2014 related to a hailstorm in Brisbane, Australia and Typhoon Rammasun, both of which impacted the Reinsurance segment.
• Underwriting income was $19.1 million, compared to underwriting income of $118.9 million in the fourth quarter of 2014.
• The combined ratio was 97.0%, compared to 79.3% in the fourth quarter of 2014.
• The loss and loss expense ratio was 66.3% in the fourth quarter of 2015, compared to 47.6% in the prior year quarter. During the fourth quarter of 2015, the company recorded net adverse reserve development on prior loss years of $12.5 million, an increase of 2.0 percentage points to the loss and loss expense ratio, compared to net favorable reserve development on prior loss years of $71.7 million a year ago, a reduction of 12.5 percentage points to the loss and loss expense ratio. This is inclusive of a $32.5 million reserve addition related to prior year development in North American healthcare, primarily related to the medical malpractice line of business. For the full year 2015, the company recorded net favorable reserve development on prior loss years of $81.6 million, a reduction of 3.3 percentage points to the loss and loss expense ratio, compared to net favorable reserve development on prior loss years of $212.6 million a year ago, a reduction of 9.7 percentage points to the loss and loss expense ratio.

• The company's expense ratio of 30.7% was lower than the 31.7% in the prior year quarter, largely due to lower employee compensation expenses.

Investment Results

• The total financial statement return on the company's investment portfolio for the three months ended December 31, 2015 was 0.1% compared to 0.4% for the three months ended December 31, 2014. The decrease in total return was primarily due to a negative mark to market adjustment on fixed income investments as a result of higher interest rates and wider credit spreads.
• Net investment income was largely unchanged compared to that of the prior year quarter.
• See the table below for the components of our investment returns:

(Expressed in millions of U.S. dollars, except percentages)				Three Months Ended December 31,								Year Ended December 31,
				2015				2014				2015				2014
Net investment income				$	49.1			$	49.1			$	182.1			$	176.8
Net realized investment (losses) gains					(38.8	)			(15.4	)			(127.6	)			89.0
Total financial statement portfolio return				$	10.3			$	33.7			$	54.5			$	265.8
Average invested assets				$	9,008.1			$	8,610.3			$	8,866.2			$	8,472.9
Financial statement portfolio return					0.1	%			0.4	%			0.6	%			3.1	%

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

Shareholders' Equity

• As of December 31, 2015, the company’s total shareholders' equity was $3,532.5 million compared to $3,778.3 million as of December 31, 2014.
• As of December 31, 2015, diluted book value per share was $37.78, a decrease of 1.3% compared to $38.27 as of December 31, 2014, and a decrease of 0.7% compared to $38.03 as of September 30, 2015.
• As of December 31, 2015, diluted tangible book value per share was $32.38, a decrease of 7.4% compared to $34.98 as of December 31, 2014, and a decrease of 1.4% compared to $32.84 as of September 30, 2015.

Capital Management

• During the fourth quarter of 2015, the company did not repurchase any common shares, although we repurchased over $245 million for the full year 2015. The company restarted its 10b5-1 repurchase program in the first quarter of 2016. As of December 31, 2015, $173 million of the company's repurchase authorization remained available.
• In May 2015, the company’s shareholders approved four quarterly dividends equal to $0.26 per share. Three of the four dividends have been paid, and the remaining dividend is anticipated to be paid in March 2016.
• In October, the company issued $500 million of 4.35% senior notes due in 2025 to refinance the existing $500 million of 7.50% senior notes due in August 2016.

Supplementary Information

Allied World will be providing both a Financial Supplement and an Investment Supplement as of December 31, 2015. This information will be available in the "Investor Relations" section of the company's website at www.awac.com.

Conference Call

Allied World will host a conference call on Thursday, February 4, 2016 at 10:00 a.m. (Eastern Time) to discuss the results for the fourth quarter ended December 31, 2015. 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 1 (888) 771-4371 (U.S. callers) or 1 (847) 585-4405 (international callers) and entering the passcode 41589386 approximately ten minutes prior to the call. A replay of the call will be available through Friday, February 19, 2016 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 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 and 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. 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 December 31,								Year Ended December 31,
				2015				2014				2015				2014
Revenues:
Gross premiums written				$	632,357			$	565,743			$	3,093,003			$	2,935,425
Premiums ceded					(167,539	)			(137,948	)			(644,996	)			(613,350	)
Net premiums written					464,818				427,795				2,448,007				2,322,075
Change in unearned premiums					157,991				145,694				40,379				(139,317	)
Net premiums earned					622,809				573,489				2,488,386				2,182,758
Net investment income					49,099				49,050				182,077				176,874
Net realized investment (losses) gains					(38,849	)			(15,329	)			(127,632	)			88,957
Other income					982				1,032				3,495				2,064
Total revenues					634,041				608,242				2,546,326				2,450,653
Expenses:
Net losses and loss expenses					412,756				272,959				1,586,334				1,199,190
Acquisition costs					95,938				80,718				375,356				295,122
General and administrative expenses					95,025				100,914				406,324				365,736
Other expense					1,907				2,003				6,210				8,578
Amortization of intangible assets					3,668				633				9,759				2,533
Interest expense					18,126				14,304				61,398				57,755
Foreign exchange loss (gain)					920				(21	)			11,289				957
Total expenses					628,340				471,510				2,456,670				1,929,871
Income before income taxes					5,701				136,732				89,656				520,782
Income tax expense					3,994				6,223				5,765				30,523
NET INCOME				$	1,707			$	130,509			$	83,891			$	490,259
PER SHARE DATA:
Basic earnings per share				$	0.02			$	1.35			$	0.91			$	5.03
Diluted earnings per share				$	0.02			$	1.33			$	0.89			$	4.92
Weighted average common shares outstanding					90,934,107				96,386,796				92,530,208				97,538,319
Weighted average common shares and common share
equivalents outstanding					92,422,422				98,394,432				94,174,460				99,591,773
Dividends paid per share				$	0.520			$	0.225			$	1.230			$	0.784

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
				December 31,				December 31,
ASSETS:				2015				2014
Fixed maturity investments trading, at fair value				$	7,201,538			$	6,069,010
Equity securities trading, at fair value					403,022				844,163
Other invested assets					966,709				955,509
Total investments					8,571,269				7,868,682
Cash and cash equivalents					668,612				670,310
Insurance balances receivable					745,888				664,815
Funds held					640,819				724,021
Prepaid reinsurance					392,265				360,732
Reinsurance recoverable					1,479,959				1,340,256
Reinsurance recoverable on paid losses					96,437				86,075
Accrued investment income					38,304				28,456
Net deferred acquisition costs					165,206				151,546
Goodwill					388,127				278,258
Intangible assets					116,623				46,298
Balances receivable on sale of investments					36,889				47,149
Net deferred tax assets					24,401				33,615
Other assets					147,149				118,641
Total assets				$	13,511,948			$	12,418,854
LIABILITIES:
Reserve for losses and loss expenses				$	6,456,156			$	5,881,165
Unearned premiums					1,683,274				1,555,313
Reinsurance balances payable					214,369				180,060
Balances due on purchases of investments					125,126				5,428
Senior notes					1,292,907				796,093
Other long-term debt					23,033				19,213
Dividends payable					—				21,669
Accounts payable and accrued liabilities					184,541				181,622
Total liabilities					9,979,406				8,640,563
SHAREHOLDERS' EQUITY:
Common shares: 2015 and 2014: par value CHF 4.10 per share (2015: 95,523,230; 2014:
100,775,256 shares issued and 2015: 90,959,635; 2014: 96,195,482 shares outstanding)					386,702				408,020
Treasury shares, at cost (2015: 4,563,595; 2014: 4,579,774)					(155,072	)			(143,075	)
Accumulated other comprehensive loss					(9,297	)			—
Retained earnings					3,310,209				3,513,346
Total shareholders' equity					3,532,542				3,778,291
Total liabilities and shareholders' equity				$	13,511,948			$	12,418,854

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 December 31, 2015				Insurance				Insurance				Reinsurance				Total
Gross premiums written				$	456,649			$	148,127			$	27,581			$	632,357
Net premiums written					338,238				107,875				18,705				464,818
Net premiums earned					327,124				103,800				191,885				622,809
Net losses and loss expenses					(254,719	)			(83,112	)			(74,925	)			(412,756	)
Acquisition costs					(38,693	)			(16,846	)			(40,399	)			(95,938	)
General and administrative expenses					(48,973	)			(30,264	)			(15,788	)			(95,025	)
Underwriting (loss) income					(15,261	)			(26,422	)			60,773				19,090
Other insurance-related revenues					982				—				—				982
Other insurance-related expenses					(587	)			(282	)			(1,038	)			(1,907	)
Segment (loss) income					(14,866	)			(26,704	)			59,735				18,165
Net investment income																	49,099
Net realized investment losses																	(38,849	)
Amortization and impairment of intangible assets																	(3,668	)
Interest expense																	(18,126	)
Foreign exchange loss																	(920	)
Income before income taxes																$	5,701
GAAP Ratios:
Loss and loss expense ratio					77.9	%			80.1	%			39.0	%			66.3	%
Acquisition cost ratio					11.8	%			16.2	%			21.1	%			15.4	%
General and administrative expense ratio					15.0	%			29.2	%			8.2	%			15.3	%
Expense ratio					26.8	%			45.4	%			29.3	%			30.7	%
Combined ratio					104.7	%			125.5	%			68.3	%			97.0	%
				North American				Global Markets
Three Months Ended December 31, 2014				Insurance				Insurance				Reinsurance				Total
Gross premiums written				$	431,244			$	84,457			$	50,042			$	565,743
Net premiums written					325,559				61,424				40,812				427,795
Net premiums earned					302,710				47,983				222,796				573,489
Net losses and loss expenses					(163,252	)			(25,852	)			(83,855	)			(272,959	)
Acquisition costs					(29,383	)			(5,606	)			(45,729	)			(80,718	)
General and administrative expenses					(60,599	)			(19,246	)			(21,069	)			(100,914	)
Underwriting income (loss)					49,476				(2,721	)			72,143				118,898
Other insurance-related revenues					1,032				—				—				1,032
Other insurance-related expenses					(584	)			(1,419	)			—				(2,003	)
Segment income (loss)					49,924				(4,140	)			72,143				117,927
Net investment income																	49,050
Net realized investment losses																	(15,329	)
Amortization of intangible assets																	(633	)
Interest expense																	(14,304	)
Foreign exchange gain																	21
Income before income taxes																$	136,732
GAAP Ratios:
Loss and loss expense ratio					53.9	%			53.9	%			37.6	%			47.6	%
Acquisition cost ratio					9.7	%			11.7	%			20.5	%			14.1	%
General and administrative expense ratio					20.0	%			40.1	%			9.5	%			17.6	%
Expense ratio					29.7	%			51.8	%			30.0	%			31.7	%
Combined ratio					83.6	%			105.7	%			67.6	%			79.3	%

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
Year Ended December 31, 2015				Insurance				Insurance				Reinsurance				Total
Gross premiums written				$	1,815,285			$	476,349			$	801,368			$	3,093,002
Net premiums written					1,358,104				324,105				765,798				2,448,007
Net premiums earned					1,301,356				366,793				820,237				2,488,386
Net losses and loss expenses					(910,193	)			(240,312	)			(435,829	)			(1,586,334	)
Acquisition costs					(139,512	)			(70,921	)			(164,923	)			(375,356	)
General and administrative expenses					(224,708	)			(108,353	)			(73,263	)			(406,324	)
Underwriting income (loss)					26,943				(52,793	)			146,222				120,372
Other insurance-related revenues					3,495				—				—				3,495
Other insurance-related expenses					(2,664	)			(2,508	)			(1,038	)			(6,210	)
Segment income (loss)					27,774				(55,301	)			145,184				117,657
Net investment income																	182,077
Net realized investment losses																	(127,632	)
Amortization and impairment of intangible assets																	(9,759	)
Interest expense																	(61,398	)
Foreign exchange loss																	(11,289	)
Income before income taxes																$	89,656
GAAP Ratios:
Loss and loss expense ratio					69.9	%			65.5	%			53.1	%			63.7	%
Acquisition cost ratio					10.7	%			19.3	%			20.1	%			15.1	%
General and administrative expense ratio					17.3	%			29.5	%			8.9	%			16.3	%
Expense ratio					28.0	%			48.8	%			29.0	%			31.4	%
Combined ratio					97.9	%			114.3	%			82.1	%			95.1	%
				North American				Global Markets
Year Ended December 31, 2014				Insurance				Insurance				Reinsurance				Total
Gross premiums written				$	1,716,288			$	280,543			$	938,594			$	2,935,425
Net premiums written					1,230,839				187,997				903,239				2,322,075
Net premiums earned					1,111,164				162,566				909,028				2,182,758
Net losses and loss expenses					(683,836	)			(61,057	)			(454,297	)			(1,199,190	)
Acquisition costs					(105,914	)			(18,222	)			(170,986	)			(295,122	)
General and administrative expenses					(219,665	)			(68,106	)			(77,965	)			(365,736	)
Underwriting income					101,749				15,181				205,780				322,710
Other insurance-related revenues					2,064				—				—				2,064
Other insurance-related expenses					(1,854	)			(6,724	)			—				(8,578	)
Segment income					101,959				8,457				205,780				316,196
Net investment income																	176,874
Net realized investment gains																	88,957
Amortization of intangible assets																	(2,533	)
Interest expense																	(57,755	)
Foreign exchange loss																	(957	)
Income before income taxes																$	520,782
GAAP Ratios:
Loss and loss expense ratio					61.5	%			37.6	%			50.0	%			54.9	%
Acquisition cost ratio					9.5	%			11.2	%			18.8	%			13.5	%
General and administrative expense ratio					19.8	%			41.9	%			8.6	%			16.8	%
Expense ratio					29.3	%			53.1	%			27.4	%			30.3	%
Combined ratio					90.8	%			90.7	%			77.4	%			85.2	%

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 December 31,								Year Ended December 31,
				2015			2014					2015			2014
Net income				$	1,707		$	130,509				$	83,891		$	490,259
Add after tax effect of:
Net realized investment losses (gains)					40,385			18,038					116,787			(76,154	)
Foreign exchange loss (gain)					920			(21	)				11,289			957
Operating income				$	43,012		$	148,526				$	211,967		$	415,062
Weighted average common shares outstanding:
Basic					90,934,107			96,386,796					92,530,208			97,538,319
Diluted					92,422,422			98,394,432					94,174,460			99,591,773
Basic per share data:
Net income				$	0.02		$	1.35				$	0.91		$	5.03
Add after tax effect of:
Net realized investment losses (gains)					0.44			0.19					1.26			(0.78	)
Foreign exchange loss					0.01			0.00					0.12			0.01
Operating income				$	0.47		$	1.54				$	2.29		$	4.26
Diluted per share data:
Net income				$	0.02		$	1.33				$	0.89		$	4.92
Add after tax effect of:
Net realized investment losses (gains)					0.44			0.18					1.24			(0.76	)
Foreign exchange loss					0.01			0.00					0.12			0.01
Operating income				$	0.47		$	1.51				$	2.25		$	4.17

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
				December 31,				December 31,
				2015				2014
Price per share at period end				$	37.19			$	37.92
Total shareholders' equity				$	3,532,542			$	3,778,291
Total tangible shareholders' equity				$	3,027,792			$	3,453,735
Basic common shares outstanding					90,959,635				96,195,482
Add: unvested restricted share units					819,309				502,506
Add: performance based equity awards					591,683				616,641
Add: employee share purchase plan					53,514				42,176
Add: dilutive options outstanding					1,968,607				2,426,674
Weighted average exercise price per share				$	16.87			$	16.41
Deduct: options bought back via treasury method					(892,993	)			(1,050,151	)
Common shares and common share
equivalents outstanding					93,499,755				98,733,328
Basic book value per common share				$	38.84			$	39.28
Diluted book value per common share				$	37.78			$	38.27
Basic tangible book value per common share				$	33.29			$	35.90
Diluted tangible book value per common share				$	32.38			$	34.98

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 December 31,								Year Ended December 31,
				2015				2014				2015				2014
Opening shareholders' equity				$	3,555,405			$	3,676,599			$	3,778,291			$	3,519,826
Add: accumulated other comprehensive loss					4,265				—				—				—
Adjusted opening shareholders' equity					3,559,670				3,676,599				3,778,291				3,519,826
Closing shareholders' equity				$	3,532,542			$	3,778,291			$	3,532,542			$	3,778,291
Add: accumulated other comprehensive loss					9,297				—				9,297				—
Adjusted closing shareholders' equity					3,541,839				3,778,291				3,541,839				3,778,291
Average shareholders' equity				$	3,550,755			$	3,727,445			$	3,660,065			$	3,649,059
Net income available to shareholders				$	1,707			$	130,509			$	83,891			$	490,259
Annualized net income available to shareholders					6,828				522,036				83,891				490,259
Annualized return on average shareholders' equity -
net income available to shareholders					0.2	%			14.0	%			2.3	%			13.4	%
Operating income available to shareholders				$	43,012			$	148,526			$	211,967			$	415,062
Annualized operating income available to shareholders					172,048				594,104				211,967				415,062
Annualized return on average shareholders' equity -
operating income available to shareholders					4.8	%			15.9	%			5.8	%			11.4	%

View source version on businesswire.com: http://www.businesswire.com/news/home/20160203006529/en/

Allied World Assurance Company Holdings, AG

Media:

Lauren Post, +1-646-794-0544

Vice President, Global Public & Media Relations

[email protected]

or

Faye Cook, +1-441-278-5406

Senior Vice President, Marketing & Communications

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or

Investors:

Sarah Doran, +1-646-794-0590

Senior Vice President, Investor Relations and Treasurer

[email protected]

www.awac.com

Source: Allied World Assurance Company Holdings, AG

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