8-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

Current Report
Pursuant to Section 13 or 15 (d) of the
Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): November 30, 2010

ALLIED WORLD ASSURANCE COMPANY HOLDINGS, AG

(Exact Name of Registrant as Specified in Charter)

Switzerland	001-32938	98-0681223
(State or Other Jurisdiction of Incorporation)	(Commission File Number)	(I.R.S. Employer Identification No.)

Lindenstrasse 8
6340 Baar/Zug
Switzerland
(Address of Principal Executive Offices and Zip Code)

+41-41-768-1080
(Registrant’s Telephone Number, Including Area Code)

Allied World Assurance Company Holdings, Ltd
27 Richmond Road
Pembroke HM08, Bermuda
(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

TABLE OF CONTENTS

EX-10.1

EX-10.2

EX-10.3

EX-10.4

EX-10.5

EX-99.1

Item 1.01 Entry into a Material Definitive Agreement.

Warrant Assignment and Assumption Agreement

     On December 1, 2010, Allied World Assurance Company Holdings, AG (“Allied World Switzerland” or the “Company”) and Allied World Assurance Company Holdings, Ltd (“Allied World Bermuda”) entered into a Warrant Assignment and Assumption Agreement (the “Warrant Assignment and Assumption Agreement”) relating to that certain warrant held by American International Group, Inc. (“AIG”) to purchase 2,000,000 voting common shares of Allied World Bermuda for $34.20 per share (the “Warrant”). Under the terms of the Warrant Assignment and Assumption Agreement, Allied World Bermuda assigned to Allied World Switzerland, and Allied World Switzerland assumed, all of Allied World Bermuda’s rights and obligations under the Warrant. As a result, the Warrant may be exercised, in accordance with its terms, into Allied World Switzerland registered shares in lieu of Allied World Bermuda common shares. The Warrant Assignment and Assumption Agreement was executed in connection with the Redomestication (as defined in Item 8. 01 of this Current Report on Form 8-K). A copy of the Warrant Assignment and Assumption Agreement is attached hereto as Exhibit 10.1 and is incorporated herein by reference. The foregoing summary of the Warrant Assignment and Assumption Agreement is qualified in its entirety by reference to Exhibit 10.1.

Registration Rights Assignment and Assumption Agreement

     On December 1, 2010, Allied World Switzerland and Allied World Bermuda entered into an Assignment and Assumption Agreement (the “Registration Rights Assignment and Assumption Agreement”) relating to that certain Registration Rights Agreement, dated July 17, 2006, by and between Allied World Bermuda and its founding shareholders (which agreement is now only applicable to AIG as a result of the other founding shareholders’ selling their Allied World Bermuda securities) (the “Registration Rights Agreement”). Under the terms of the Registration Rights Assignment and Assumption Agreement, Allied World Bermuda assigned to Allied World Switzerland, and Allied World Switzerland assumed, all of Allied World Bermuda’s rights and obligations under the Registration Rights Agreement. As a result, Allied World Switzerland has agreed to provide AIG with certain registration rights under the Securities Act of 1933, as amended, which had been previously provided by Allied World Bermuda. The Registration Rights Assignment and Assumption Agreement was executed in connection with the Redomestication. A copy of the Registration Rights Assignment and Assumption Agreement is attached hereto as Exhibit 10.2 and is incorporated herein by reference. The foregoing summary of the Registration Rights Assignment and Assumption Agreement is qualified in its entirety by reference to Exhibit 10.2.

Benefit Plan Assignment and Assumption Agreement

     The description of the Benefit Plan Assignment and Assumption Agreement in Item 5.02 of this Current Report on Form 8-K is incorporated herein by reference.

Indemnification Agreements

     In connection with the completion of the Redomestication, as of December 1, 2010, Allied World Switzerland will enter into Amended and Restated Indemnification Agreements (the “Indemnification Agreements”), substantially in the form attached hereto as Exhibit 10.4, with each of its directors and executive officers (the “Indemnitees”). The Indemnification Agreements provide for indemnification and expense advancement and include related provisions meant to facilitate the Indemnitee’s receipt of such benefits. The Indemnification Agreements also provide that the Company will indemnify each Indemnitee against claims arising out of such Indemnitee’s service to the Company to the fullest extent allowed under Swiss law (except in certain limited circumstances). The form of Indemnification Agreement is attached hereto as Exhibit 10.4 and is incorporated herein by reference. The foregoing summary of the Indemnification Agreements is qualified in its entirety by reference to Exhibit 10.4.

Contribution-in-Kind Agreement

     On November 30, 2010, Allied World Switzerland and Allied World Bermuda entered into a Contribution-in-Kind Agreement (the “Contribution-in-Kind Agreement”) which implements the Scheme of Arrangement (as

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defined in Item 8. 01 of this Current Report on Form 8-K). Under the terms of the Contribution-in-Kind Agreement, (i) all issued and outstanding voting common shares of Allied World Bermuda were cancelled and issued to Allied World Switzerland as a contribution in kind after the Scheme of Arrangement became effective, in exchange for which the holders of such voting common shares immediately prior to the completion of the Redomestication received the same number of voting shares of Allied World Switzerland upon registration of the capital increase with the Swiss Commercial Register; and (ii) all issued and outstanding non-voting common shares of Allied World Bermuda were cancelled and issued to Allied World Switzerland as a contribution in kind after the Scheme of Arrangement became effective, in exchange for which the holders of such non-voting common shares immediately prior to the completion of the Redomestication received the same number of non-voting participation certificates of Allied World Switzerland upon registration of the capital increase with the Swiss Commercial Register. The Contribution-in-Kind Agreement was executed in connection with the Redomestication. A copy of the Contribution-in-Kind Agreement is attached hereto as Exhibit 10.5 and is incorporated herein by reference. The foregoing summary of the Contribution-in-Kind Agreement is qualified in its entirety by reference to Exhibit 10.5.

Item 3.03. Material Modification to Rights of Security Holders.

     The disclosure under the heading “Articles of Association and Organizational Regulations” in Item 5.03 of this Current Report on Form 8-K is incorporated herein by reference.

Item 5.01. Changes in Control of Registrant.

     The description of the Redomestication in Item 8.01 of this Current Report on Form 8-K is incorporated herein by reference. As a result of the Redomestication, Allied World Bermuda became a direct, wholly-owned subsidiary of Allied World Switzerland.

Item 5.02. Departures of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.

Benefit Plan Assignment and Assumption Agreement

     On December 1, 2010, Allied World Bermuda, Allied World Assurance Company, Ltd and Newmarket Administrative Services, Inc. (together, the “Assignors”) and Allied World Switzerland entered into a Benefit Plan Assumption and General Amendment Agreement (the “Benefit Plan Assignment and Assumption Agreement”) pursuant to which Allied World Bermuda assigned to Allied World Switzerland, and Allied World Switzerland assumed, the following equity incentive plans of Allied World Bermuda, including all award or grant documents or agreements thereunder (the “Assumed Equity Plans”): (i) the Allied World Assurance Company Holdings, Ltd Second Amended and Restated 2001 Employee Stock Option Plan; (ii) the Allied World Assurance Company Holdings, Ltd Second Amended and Restated 2004 Stock Incentive Plan; (iii) the Allied World Assurance Company Holdings, Ltd Second Amended and Restated Long-Term Incentive Plan; and (iv) the Allied World Assurance Company Holdings, Ltd 2008 Employee Share Purchase Plan. Additionally, the Assignors assigned to Allied World Switzerland, and Allied World Switzerland assumed, the employment agreements of six of the Company’s executive officers that will work part-time in Switzerland (the “Assumed Employment Agreements”) to which the Assignors are parties. The Assumed Equity Plans and the Assumed Employment Agreements are hereinafter referred to collectively as the “Assumed Benefit Arrangements.” The Benefit Plan Assignment and Assumption Agreement was executed in connection with the Redomestication.

     As a result of Allied World Switzerland’s assumption of the Assumed Benefit Arrangements, Allied World Switzerland will be the sponsor of the Assumed Benefit Arrangements and Allied World Switzerland’s registered shares will be issued under the Assumed Benefit Arrangements in lieu of Allied World Bermuda common shares. A copy of the Benefit Plan Assignment and Assumption Agreement is attached hereto as Exhibit 10.3 and is incorporated herein by reference. The foregoing summary of the Benefit Plan Assignment and Assumption Agreement is qualified in its entirety by reference to Exhibit 10.3.

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Amendment to Employment Agreements

     Effective as of December 1, 2010, Allied World Switzerland will enter into an amendment (the “Amendment”) to the employment agreements it assumed from certain of its subsidiaries (as described under “Benefit Plan Assignment and Assumption Agreement” in this Item 5.02) for the following executive officers: Scott A. Carmilani, David A. Bell, Wesley D. Dupont, John J. Gauthier, Marshall J. Grossack and John L. Sennott, Jr. The Amendment requires each executive officer to spend a minimum of 10% of their annual working time in Zug, Switzerland, subject to the officer’s receipt of any applicable work and residence permits. The Amendment does not change the officer’s aggregate compensation. However, for Swiss taxation purposes, it allocates a percentage of the total compensation that such officer is currently receiving or may receive in the future to his time in Switzerland.

Chief Operating Officer

     Effective as of December 1, 2010, David A. Bell, 37, has been appointed as Chief Operating Officer of Allied World Switzerland and is responsible for the company’s global day-to-day operating activities and directing the implementation of its strategic processes, procedures, controls and projects, including operations, claims, facilities and administration. Mr. Bell previously served in this capacity for Allied World Assurance Company, Ltd. Further biographical and other information about Mr. Bell is contained in Allied World Bermuda’s proxy statement for its 2010 Annual General Meeting, which was filed with the U.S. Securities and Exchange Commission (the “SEC”) on March 17, 2010 (the “Proxy Statement”). The form of employment agreement for the company’s executive officers, including Mr. Bell, was filed as Exhibit 10.41 to Allied World Bermuda’s Annual Report on Form 10-K, which was filed with the SEC on February 27, 2009, and a description thereof is included in the Proxy Statement.

Item 5.03. Amendment to Articles of Incorporation or Bylaws; Change in Fiscal Year.

Articles of Association and Organizational Regulations

     The Company’s Swiss Articles of Association and Organizational Regulations became effective as of the completion of the Redomestication on December 1, 2010. The summary of the material terms of the Articles of Association and Organizational Regulations and the comparison of the rights of shareholders under the Articles of Association and Organizational Regulations described under the headings “Description of Allied World Switzerland Shares” and “Comparison of Rights of Shareholders and Powers of the Board of Directors” in Allied World Bermuda’s definitive proxy statement dated and filed with the SEC on October 14, 2010 (the “Redomestication Proxy Statement”) is incorporated herein by reference. Copies of Allied World Switzerland’s Articles of Association and Organizational Regulations are attached hereto as Exhibit 3.1 and Exhibit 3.2, respectively, and are incorporated herein by reference. The Articles of Association includes certain share, share capital and par value numbers that were intentionally left blank in the applicable annex to the Redomestication Proxy Statement. The foregoing summary of the Articles of Association and Organizational Regulations is qualified in its entirety by reference to Exhibit 3.1 and Exhibit 3.2, respectively.

Item 8.01. Other Events.

     On November 26, 2010, Allied World Bermuda received approval from the Supreme Court of Bermuda of a scheme of arrangement under Bermuda law (the “Scheme of Arrangement”) that would change the place of incorporation of the ultimate parent company of Allied World Bermuda and its subsidiaries from Bermuda to Switzerland. The Scheme of Arrangement became effective upon the filing of such court approval with the Bermuda Registrar of Companies on November 30, 2010.

     On December 1, 2010, Allied World Switzerland issued a press release announcing the completion of the Redomestication. The press release is furnished herewith as Exhibit 99.1 and is not deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), is not otherwise subject to the liabilities of that section and is not incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.

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Pursuant to the Scheme of Arrangement, the following steps occurred on December 1, 2010:
(1)	all previously outstanding voting and non-voting common shares of Allied World Bermuda were cancelled;
(2)	Allied World Bermuda, acting on behalf of its shareholders, pursuant to the Contribution-in-Kind Agreement, issued 39,794,636 voting common shares and 202,340 non-voting common shares to Allied World Switzerland;
(3)	Allied World Switzerland increased its share and participation capital by 599,954,640, which is equal to the aggregate par value of the new voting shares and non-voting participation certificates, and filed its Articles of Association reflecting the share and participation capital increase with the Swiss Commercial Register; and
(4)	the new voting shares of Allied World Switzerland were delivered on a one-for-one basis to the holders of the outstanding Allied World Bermuda voting common shares immediately prior to the completion of the Redomestication that were cancelled, and the new non-voting participation certificates of Allied World Switzerland were delivered on a one-for-one basis to the holders of the outstanding Allied World Bermuda non-voting common shares immediately prior to the completion of the Redomestication that were cancelled.

     As a result of the Scheme of Arrangement, the holders of voting common shares of Allied World Bermuda became holders of voting shares of Allied World Switzerland, the holders of non-voting common shares of Allied World Bermuda became holders of non-voting participation certificates of Allied World Switzerland and Allied World Bermuda became a wholly-owned subsidiary of Allied World Switzerland. In connection with the consummation of the Scheme of Arrangement:

• On December 1, 2010, Allied World Switzerland issued 1,480,800 additional treasury shares in exchange for 1,480,800 common shares held by Allied World Bermuda in treasury on a one-for-one basis in order to satisfy delivery obligations under Allied World Bermuda’s equity-based incentive compensation plans; and

• pursuant to the terms of the Warrant outstanding on December 1, 2010, Allied World Switzerland assumed Allied World Bermuda’s obligations under the Warrant to issue voting shares of Allied World Switzerland in connection with an exercise of the Warrant.

     The foregoing transactions together with the steps of the Scheme of Arrangement are referred to as the “Redomestication.”

     Upon the completion of the Redomestication on December 1, 2010, the registered shares of Allied World Switzerland commenced trading on the New York Stock Exchange under the symbol “AWH” and with the CUSIP number H01531 104.

     In accordance with Rule 12g-3(a) under the Exchange Act, the shares of Allied World Switzerland, as the successor issuer to Allied World Bermuda, are deemed to be registered under Section 12(b) of the Exchange Act.

Item 9.01. Financial Statements and Exhibits.

   (d) Exhibits

Exhibit
Number	Description
3.1	Articles of Association of Allied World Assurance Company Holdings, AG (incorporated by reference to Exhibit 3.1 of Allied World Assurance Company Holdings, AG’s Registration Statement on Form 8-A/A filed on December 1, 2010)

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Exhibit
Number	Description
3.2	Organizational Regulations of Allied World Assurance Company Holdings, AG (incorporated by reference to Exhibit 3.2 of Allied World Assurance Company Holdings, AG’s Registration Statement on Form 8-A/A filed on December 1, 2010)
10.1	Warrant Assignment and Assumption Agreement, dated as of December 1, 2010, by and between Allied World Assurance Company Holdings, Ltd and Allied World Assurance Company Holdings, AG
10.2	Registration Rights Assignment and Assumption Agreement, dated as of December 1, 2010, by and between Allied World Assurance Company Holdings, Ltd and Allied World Assurance Company Holdings, AG
10.3	Benefit Plan Assignment and Assumption Agreement, dated as of December 1, 2010, by and among Allied World Assurance Company Holdings, Ltd, Allied World Assurance Company, Ltd, Newmarket Administrative Services, Inc. and Allied World Assurance Company Holdings, AG
10.4	Form of Indemnification Agreement for directors and officers of Allied World Assurance Company Holdings, AG
10.5	Contribution-in-Kind Agreement, dated November 30, 2010
99.1	Press release announcing completion of the Redomestication, dated December 1, 2010

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SIGNATURE

     Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	ALLIED WORLD ASSURANCE COMPANY HOLDINGS, LTD
Dated: December 1, 2010	By:	/s/ Wesley D. Dupont
		Name:	Wesley D. Dupont
		Title:	Executive Vice President, General Counsel and Corporate Secretary

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EXHIBIT INDEX

Exhibit
Number	Description
3.1	Articles of Association of Allied World Assurance Company Holdings, AG (incorporated by reference to Exhibit 3.1 of Allied World Assurance Company Holdings, AG’s Registration Statement on Form 8-A/A filed on December 1, 2010)
3.2	Organizational Regulations of Allied World Assurance Company Holdings, AG (incorporated by reference to Exhibit 3.2 of Allied World Assurance Company Holdings, AG’s Registration Statement on Form 8-A/A filed on December 1, 2010)
10.1	Warrant Assignment and Assumption Agreement, dated as of December 1, 2010, by and between Allied World Assurance Company Holdings, Ltd and Allied World Assurance Company Holdings, AG
10.2	Registration Rights Assignment and Assumption Agreement, dated as of December 1, 2010, by and between Allied World Assurance Company Holdings, Ltd and Allied World Assurance Company Holdings, AG
10.3	Benefit Plan Assignment and Assumption Agreement, dated as of December 1, 2010, by and among Allied World Assurance Company Holdings, Ltd, Allied World Assurance Company, Ltd, Newmarket Administrative Services, Inc. and Allied World Assurance Company Holdings, AG
10.4	Form of Indemnification Agreement for directors and officers of Allied World Assurance Company Holdings, AG
10.5	Contribution-in-Kind Agreement, dated December 1, 2010
99.1	Press release announcing completion of the Redomestication, dated December 1, 2010

EX-10.1

Exhibit 10.1

WARRANT ASSIGNMENT AND ASSUMPTION AGREEMENT

     This WARRANT ASSIGNMENT AND ASSUMPTION AGREEMENT (the “Agreement”) is dated and effective as of December 1, 2010, by and between Allied World Assurance Company Holdings, Ltd, a company organized under the laws of Bermuda (“Assignor”), and Allied World Assurance Company Holdings, AG, a Swiss corporation (“Assignee”).

W I T N E S S E T H:

     WHEREAS, Assignor is a party to that certain warrant to purchase an aggregate of 2,000,000 voting common shares of Assignor with American International Group, Inc. (the “Warrant”);

     WHEREAS, in connection with a scheme of arrangement of Assignor, Assignor entered into a contribution-in-kind agreement with Assignee, whereby (i) all issued and outstanding voting common shares of Assignor were cancelled and holders of such voting common shares of Assignor before the transaction received the same number of voting shares of Assignee and (ii) all issued and outstanding non-voting common shares of Assignor were cancelled and holders of such non-voting common shares of Assignor before the transaction received the same number of non-voting participation certificates of Assignee (the “Redomestication”);

     WHEREAS, pursuant to the Redomestication, Assignor has become a direct, wholly-owned subsidiary of Assignee; and

     WHEREAS, Assignor desires to assign, transfer and deliver all of its rights and obligations under the Warrant to Assignee, and Assignee desires to acquire and assume all such rights and obligations;

     NOW, THEREFORE, in consideration of the foregoing premises and of other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto, each intending to be legally bound, hereby agree as follows:

     Section 1. Assignor hereby assigns, transfers, conveys and delivers to Assignee all of Assignor’s rights and obligations in and under the Warrant, and Assignee does hereby accept the same.

     Section 2. Assignee hereby agrees to assume and to pay or perform, or to cause to be paid or performed (including with respect to the delivery of shares pursuant to the Warrants, whether delivered by Assignor, Assignee or another subsidiary of Assignee), promptly as they become due, and to indemnify Assignor and its successors and permitted assigns from and against, all liabilities and obligations of Assignor accruing under the Warrant.

     Section 3. Effective as of and after the date of this Agreement, the Warrant shall be read and construed in all respects as if references therein to the “Company” are references to Assignee hereunder.

     Section 4. Assignor represents and warrants that the recitals to this Agreement are true and correct.

     Section 5. This Agreement is binding upon and shall inure to the benefit of Assignor and Assignee and their respective legal representatives, successors and assigns.

     Section 6. Assignor agrees to execute and deliver such instruments, agreements, certificates and other documents as shall be necessary or appropriate to effectuate the assignment and assumption contemplated hereby.

     Section 7. This Agreement shall be governed by and construed in accordance with the laws of the State of New York.

     Section 8. This Agreement may be executed in two or more counterparts, all of which, when taken together, shall be deemed to be one original.

[Remainder of Page Intentionally Left Blank]

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IN WITNESS WHEREOF, each of the parties hereto has duly executed this Agreement as of the date first above written.

ASSIGNOR: ALLIED WORLD ASSURANCE COMPANY HOLDINGS, LTD
By:	/s/ Scott A. Carmilani
Name:		Scott A. Carmilani
Title:		President and Chief Executive Officer
ASSIGNEE: ALLIED WORLD ASSURANCE COMPANY HOLDINGS, AG
By:	/s/ Scott A. Carmilani
Name:		Scott A. Carmilani
Title:		President and Chief Executive Officer

[Warrant Assignment and Assumption Agreement]

EX-10.2

Exhibit 10.2

ASSIGNMENT AND ASSUMPTION AGREEMENT

     This ASSIGNMENT AND ASSUMPTION AGREEMENT (the “Agreement”) is dated and effective as of December 1, 2010, by and between Allied World Assurance Company Holdings, Ltd, a company organized under the laws of Bermuda (“Assignor”), and Allied World Assurance Company Holdings, AG, a Swiss corporation (“Assignee”).

W I T N E S S E T H:

     WHEREAS, Assignor is a party to that certain Registration Rights Agreement (the “Registration Rights Agreement”), dated as of July 17, 2006, by and among Assignor and the shareholders named therein (the “Specified Shareholders”) pursuant to which Assignor has agreed to provide the Specified Shareholders the registration rights set forth in the Registration Rights Agreement;

     WHEREAS, as of the date hereof American International Group, Inc. is the only Specified Shareholder party to the Registration Rights Agreement;

     WHEREAS, in connection with a scheme of arrangement of Assignor, Assignor entered into a contribution-in-kind agreement with Assignee, whereby (i) all issued and outstanding voting common shares of Assignor were cancelled and holders of such voting common shares of Assignor before the transaction received the same number of voting shares of Assignee and (ii) all issued and outstanding non-voting common shares of Assignor were cancelled and holders of such non-voting common shares of Assignor before the transaction received the same number of non-voting participation certificates of Assignee (the “Redomestication”);

     WHEREAS, pursuant to the Redomestication, Assignor has become a direct, wholly-owned subsidiary of Assignee; and

     WHEREAS, Assignor desires to assign, transfer and deliver all of its rights and obligations under the Registration Rights Agreement to Assignee, and Assignee desires to acquire and assume all such rights and obligations;

     NOW, THEREFORE, in consideration of the foregoing premises and of other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto, each intending to be legally bound, hereby agree as follows:

     Section 1. Assignor hereby assigns, transfers, conveys and delivers to Assignee all of Assignor’s rights and obligations in and under the Registration Rights Agreement, and Assignee does hereby accept the same.

     Section 2. Assignee hereby agrees to assume and to pay or perform, or to cause to be paid or performed, promptly as they become due, and to indemnify Assignor and its successors and permitted assigns from and against, all liabilities and obligations of Assignor accruing under the Registration Rights Agreement.

     Section 3. Effective as of and after the date of this Agreement, the Registration Rights Agreement shall be read and construed in all respects as if references therein to the “Company” are references to Assignee hereunder.

     Section 4. Assignor represents and warrants that the recitals to this Agreement are true and correct.

     Section 5. This Agreement is binding upon and shall inure to the benefit of Assignor and Assignee and their respective legal representatives, successors and assigns.

     Section 6. Assignor agrees to execute and deliver such instruments, agreements, certificates and other documents as shall be necessary or appropriate to effectuate the assignment and assumption contemplated hereby.

     Section 7. This Agreement shall be governed by and construed in accordance with the laws of the State of New York.

     Section 8. This Agreement may be executed in two or more counterparts, all of which, when taken together, shall be deemed to be one original.

[Remainder of Page Intentionally Left Blank]

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IN WITNESS WHEREOF, each of the parties hereto has duly executed this Agreement as of the date first above written.

ASSIGNOR: ALLIED WORLD ASSURANCE COMPANY HOLDINGS, LTD
By:	/s/ Scott A. Carmilani
Name:		Scott A. Carmilani
Title:		President and Chief Executive Officer
ASSIGNEE: ALLIED WORLD ASSURANCE COMPANY HOLDINGS, AG
By:	/s/ Scott A. Carmilani
Name:		Scott A. Carmilani
Title:		President and Chief Executive Officer

[Assignment and Assumption Agreement]

EX-10.3

Exhibit 10.3

BENEFIT PLAN ASSUMPTION AND GENERAL AMENDMENT AGREEMENT

     This BENEFIT PLAN ASSUMPTION AND GENERAL AMENDMENT AGREEMENT (the “Agreement”) is dated and effective as of December 1, 2010, by and among Allied World Assurance Company Holdings, Ltd, a company organized under the laws of Bermuda (“Holdings”), Allied World Assurance Company, Ltd, a company organized under the laws of Bermuda (“Allied World Bermuda”), Newmarket Administrative Services, Inc., a corporation organized under the laws of Delaware (“Newmarket”, and together with Holdings and Allied World Bermuda, the (“Assignors”), and Allied World Assurance Company Holdings, AG, a Swiss corporation (“Assignee”).

W I T N E S S E T H:

     WHEREAS, in connection with a scheme of arrangement of Holdings, Holdings entered into a contribution-in-kind agreement with Assignee, whereby (i) all issued and outstanding voting common shares of Holdings were cancelled and holders of such voting common shares of Holdings (the “Common Shares”) before the transaction received the same number of registered shares of Assignee (the “Registered Shares”) and (ii) all issued and outstanding non-voting common shares of Holdings were cancelled and holders of such non-voting common shares of Holdings before the transaction received the same number of non-voting participation certificates of Assignee (the “Redomestication”);

     WHEREAS, pursuant to the Redomestication, Assignors have become wholly-owned subsidiaries of Assignee;

     WHEREAS, (i) Holdings maintains and sponsors those certain equity-based incentive compensation plans listed on Exhibit A hereto (collectively, the “Assumed Equity Plans”), and is party to related award agreements thereunder providing for the grant of options, restricted share units, performance awards and other equity-based awards to purchase or receive Common Shares (collectively, the “Assumed Equity Awards”); and (ii) Assignors are parties to employment agreements with certain of their respective officers and other employees as set forth on Exhibit B hereto (all such employment agreements collectively, the “Assumed Employment Agreements,” and together with the Assumed Equity Plans and the Assumed Equity Awards, the “Assumed Benefit Arrangements”); and

     WHEREAS, in connection with the Redomestication, (i) Assignors desire to assign, transfer and deliver all of their respective rights and obligations under each Assumed Benefit Arrangement to Assignee, and Assignee desires to acquire and assume all such rights and obligations and to (x) adopt the Assumed Equity Plans and Assumed Equity Awards, and to issue or cause to be issued Registered Shares in lieu of Common Shares being issued in connection with such Assumed Equity Plans and Assumed Equity Awards, and (y) adopt and become party to the Assumed Employment Agreements in lieu of Assignors, as applicable; and (ii) Assignors and Assignee desire to cause all Assumed Benefit Arrangements to be amended such that, where applicable, (1) references to any such Assignor are replaced with references to Assignee, (2) references to the Bye-laws or Bylaws of such Assignor are replaced with references to the Organizational Regulations of Assignee, (3) references to the Memorandum of Association or Certificate of Incorporation of any such Assignor are replaced with references to the Articles of

Association of Assignee, (4) references to the Common Shares are replaced with references to the Registered Shares, (5) provisions for submitting to the jurisdiction of Bermuda courts are replaced with provisions for submitting to the jurisdiction of Swiss courts;

     NOW, THEREFORE, in consideration of the foregoing premises and of other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto, each intending to be legally bound, hereby agree as follows:

     Section 1. Assignors respectively hereby assign to Assignee, and Assignee hereby accepts from Assignors and hereby assumes, the Assumed Benefit Arrangements and the respective rights and obligations of Assignors thereunder. As a result of such assignment and assumption, Assignee will be the sponsor of the Assumed Benefit Arrangements and Registered Shares will be issued under the Assumed Benefit Arrangements in lieu of Common Shares being issued thereunder. Assignee hereby agrees to pay or perform, or to cause to be paid or performed, promptly as they become due, and to indemnify Assignors and their respective successors and permitted assigns from and against, all liabilities and obligations of Assignors accruing under the Assumed Benefit Arrangements.

     Section 2. To the extent that any Assumed Benefit Arrangement provides for the issuance, acquisition, holding or purchase of, settles in, or otherwise relates to or references, Common Shares, then pursuant to the terms hereof, each such Assumed Benefit Arrangement is hereby amended to provide for the issuance, acquisition, holding or purchase of and settlement in, and shall otherwise relate to or reference, Registered Shares. All references in the Assumed Benefit Arrangements to (i) any Assignor are hereby amended to be references to Assignee, (ii) the Memorandum of Association and Bye-laws, as applicable, or the Articles or Certificate of Incorporation and Bylaws, as applicable of such Assignor are replaced with references to the Articles of Association and Organizational Regulations of Assignee, (iii) the Common Shares are replaced with references to the Registered Shares, and (iv) the jurisdiction of Bermuda courts are replaced with references to the jurisdiction of Swiss courts. For purposes of clarification, all outstanding Assumed Equity Awards, as hereby amended, shall remain outstanding pursuant to the terms thereof, and shall be exercisable, issuance, held, available, settled or vested upon the same terms and conditions as applicable immediately prior to the date hereof (or as subsequently amended), except that upon the exercise, issuance, holding, availability, settlement or vesting of such Assumed Equity Awards, Registered Shares are issuable or available, or benefits or other amounts shall be determined in reference to Registered Shares, as applicable, in lieu of Common Shares.

     Section 3. Each Assumed Equity Award that is an option shall be assumed hereunder in such manner that Assignee would be a corporation “assuming a stock option in a transaction to which Section 424 of the Code applies” as described in Section 424 of the United States Internal Revenue Code of 1986, as amended (the “Code”), were Section 424 of the Code applicable to such Assumed Equity Award and with regard to the requirements of Treasury Regulation Section 1.409A-1(b)(5)(v)(D).

     Section 4. The parties hereto acknowledge that the benefit and other plans of Assignors and their affiliates that are not Assumed Benefit Arrangements are not assigned to or assumed or otherwise adopted by Assignee.

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     Section 5. Subject to the terms of this Agreement, each Assumed Benefit Arrangement is specifically ratified and reaffirmed by Assignee, and Assignee hereby authorizes and approves the restatement of any such Assumed Benefit Arrangements to reflect the amendments contained herein.

     Section 6. Assignors represent and warrant that the recitals to this Agreement are true and correct.

     Section 7. This Agreement is binding upon and shall inure to the benefit of Assignors and Assignee and their respective legal representatives, successors and assigns.

     Section 8. Assignors agree to execute and deliver such instruments, agreements, certificates and other documents as shall be necessary or appropriate to effectuate the assignment and assumption contemplated hereby.

     Section 9. This Agreement shall be governed by and construed in accordance with the laws of the State of New York.

     Section 10. This Agreement may be executed in two or more counterparts, all of which, when taken together, shall be deemed to be one original.

[Remainder of Page Intentionally Left Blank]

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IN WITNESS WHEREOF, each of the parties hereto has duly executed this Agreement as of the date first above written.

ASSIGNORS: ALLIED WORLD ASSURANCE COMPANY HOLDINGS, LTD
By:	/s/ Scott A. Carmilani
Name:		Scott A. Carmilani
Title:		President and Chief Executive Officer
ALLIED WORLD ASSURANCE COMPANY, LTD
By:	/s/ Wesley D. Dupont
Name:		Wesley D. Dupont
Title:		Executive Vice President, General Counsel and Corporate Secretary
NEWMARKET ADMINISTRATIVE SERVICES, INC.
By:	/s/ Wesley D. Dupont
Name:		Wesley D. Dupont
Title:		Vice President and Secretary

ASSIGNEE: ALLIED WORLD ASSURANCE COMPANY HOLDINGS, AG
By:	/s/ Scott A. Carmilani
Name:		Scott A. Carmilani
Title:		President and Chief Executive Officer

[Benefit Plan Assumption and General Amendment Agreement]

Exhibit A
Assumed Equity Plans

Allied World Assurance Company Holdings, Ltd Second Amended and Restated Long-Term Incentive Plan

Allied World Assurance Company Holdings, Ltd Second Amended and Restated 2001 Employee Stock Option Plan

Allied World Assurance Company Holdings, Ltd Second Amended and Restated 2004 Stock Incentive Plan

Allied World Assurance Company Holdings, Ltd 2008 Employee Share Purchase Plan

Exhibit B
Assumed Employment Agreements

Assumed Employment Agreements include the employment agreements as may have been amended, for the following six individuals:

• David A. Bell

• Scott A. Carmilani

• Wesley D. Dupont

• John J. Gauthier

• Marshall Grossack

• John Sennott, Jr.

EX-10.4

Exhibit 10.4

AMENDED AND RESTATED
INDEMNIFICATION AGREEMENT

     This INDEMNIFICATION AGREEMENT is made and executed as of this 1^st day of December, 2010, by and among Allied World Assurance Company Holdings, AG, a company incorporated under the laws of Switzerland (the “Company”), Allied World Assurance Company, Ltd, a company incorporated under the laws of Bermuda (“AWAC”), and                     , an individual resident of                      (the “Indemnitee”).

     WHEREAS, the Company is aware that, in order to induce highly competent persons to serve the Company as directors or officers or in other capacities, the Company must provide such persons with adequate protection through insurance and indemnification against inordinate risks of claims and actions against them arising out of their service to and activities on behalf of the Company;

     WHEREAS, the Company recognizes that the increasing difficulty in obtaining directors’ and officers’ liability insurance, the increases in the cost of such insurance and the general reductions in the coverage of such insurance have increased the difficulty of attracting and retaining such persons;

     WHEREAS, the Board of Directors of the Company has determined that it is essential to the best interests of the Company shareholders that the Company act to assure such persons that there will be increased certainty of such protection in the future;

     WHEREAS, it is reasonable, prudent and necessary for the Company contractually to obligate itself to indemnify such persons to the fullest extent permitted by applicable law so that they will continue to serve the Company free from undue concern that they will not be so indemnified;

     WHEREAS, the Indemnitee is willing to serve, continue to serve, and take on additional service for or on behalf of the Company or any of its direct or indirect subsidiaries on the condition that he/she be so indemnified;

     WHEREAS, in recognition of the value and benefit that AWAC derives from being a subsidiary of the Company and from the services performed by the Board of Directors and officers of the Company, subject to the terms and conditions of this Agreement, AWAC will guaranty the obligations of the Company to provide indemnification to and pay and/or advance the Expenses (as herein after defined) of the Indemnitee to the extent the Company is unable to do so;

     WHEREAS, Allied World Assurance Company Holdings, Ltd, a Bermuda company and an affiliate of the Company (“Allied World Bermuda”), and Indemnitee previously entered into an indemnification agreement as of [          ] (the “Former Indemnification Agreement”); and

     WHEREAS, Indemnitee and the Company now desire to enter into a new agreement embodying the amended and restated terms of indemnification as set forth herein (this “Agreement”), and the Indemnitee, the Company and Allied World Bermuda hereby agree that this Agreement shall upon its execution and delivery supersede the Former Indemnification Agreement and cause the Former Indemnification Agreement to be of no further force or effect, and that Indemnitee’s rights to indemnification shall be governed solely by and subject solely to this Agreement;

     NOW, THEREFORE, the parties hereto do hereby agree as follows:

     1. Service by the Indemnitee. The Indemnitee agrees to serve and/or continue to serve as [a member of the Board] [an officer] of the Company faithfully and will discharge his/her duties and responsibilities to the best of his/her ability so long as the Indemnitee is duly elected or qualified in accordance with the provisions of the Articles of Association, as the same may be amended from time to time (the “Articles”), the Organizational Regulations, as the same may be amended from time to time, and the Swiss Code of Obligations (the “Swiss Code”), or until his/her earlier death, resignation or removal. The Indemnitee may at any time and for any reason resign from such position (subject to any other contractual obligation or other obligation imposed by operation by law), in which event the Company shall have no obligation under this Agreement to continue the Indemnitee in any such position. Nothing in this Agreement shall confer upon the Indemnitee the right to continue in the employ of the Company or as a director of the Company or affect the right of the Company to terminate the Indemnitee’s employment at any time in the sole discretion of the Company, with or without cause, subject to any contract rights of the Indemnitee created or existing otherwise than under this Agreement.

     2. Indemnification. The Company shall indemnify the Indemnitee against all Expenses, judgments, fines and amounts paid in settlement actually and reasonably incurred by the Indemnitee as provided in this Agreement to the fullest extent permitted by the Articles and the Swiss Code or other applicable law in effect from time to time if he/she acted in good faith and reasonably believed he/she was acting in the best interest of the Company. Without diminishing the scope of the indemnification provided by this Section 2, the rights of indemnification of the Indemnitee provided hereunder shall include, but shall not be limited to, those rights hereinafter set forth, except that no indemnification shall be paid to the Indemnitee:

     (a) on account of any action, suit, investigation or proceeding in which judgment is rendered against the Indemnitee for disgorgement of profits made from the purchase or sale by the Indemnitee of securities of the Company pursuant to the provisions of Section 16(b) of the Securities Exchange Act of 1934, as amended (the “Act”), or similar provisions of applicable law;

     (b) with respect to any claim, issue or matter as to which the Indemnitee shall have been adjudged in a final non-appealable judgment or decree of a court, arbitral tribunal or governmental or administrative authority of competent jurisdiction to have committed an intentional or grossly negligent breach of his/her duties [as a member of the Board] [as an executive officer] under applicable law;

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     (c) in any circumstance where such indemnification is prohibited by applicable law;

     (d) with respect to liability for which payment is actually made to the Indemnitee under a valid and collectible insurance policy or under a valid and enforceable indemnity clause, Articles or agreement (other than this Agreement), except in respect of any liability in excess of payment under such insurance, clause, Articles or agreement;

     (e) if a final decision by a court having jurisdiction in the matter shall determine that such indemnification is not lawful (and, in this respect, both the Company and the Indemnitee have been advised that it is the position of the Securities and Exchange Commission that indemnification for liabilities arising under the federal securities laws is against public policy and is, therefore, unenforceable, and that claims for indemnification should be submitted to the appropriate court for adjudication); or

     (f) in connection with any action, suit, investigation or proceeding by the Indemnitee against the Company or any of its direct or indirect subsidiaries or the directors, officers, employees or other Indemnitees of the Company or any of its direct or indirect subsidiaries, (i) unless such indemnification is expressly required to be made by law, (ii) unless the proceeding was authorized by the Board of Directors of the Company, (iii) unless such indemnification is provided by the Company, in its sole discretion, pursuant to the powers vested in the Company under applicable law, or (iv) except as provided in Sections 10 and 12 hereof.

     3. Actions or Proceedings Other Than an Action by or in the Right of the Company. The Indemnitee shall be entitled to the indemnification rights provided in this Section 3 if the Indemnitee was or is a party or witness or is threatened to be a party or witness to any threatened, pending or completed action, suit, investigation or proceeding, whether civil, criminal, administrative or investigative in nature, other than an action by or in the right of the Company, by reason of the fact that the Indemnitee is or was a director, officer, employee, agent or fiduciary of the Company, or any of its direct or indirect subsidiaries, or is or was serving at the request of the Company, or any of its direct or indirect subsidiaries, as a director, officer, employee, agent or fiduciary of any other entity, including, but not limited to, another corporation, partnership, limited liability company, employee benefit plan, joint venture, trust or other enterprise, or by reason of any act or omission by him/her in such capacity. Pursuant to this Section 3, the Indemnitee shall be indemnified against all Expenses, judgments, penalties (including excise and similar taxes), fines and amounts paid in settlement which were actually and reasonably incurred by the Indemnitee in connection with such action, suit, investigation or proceeding (including, but not limited to, the investigation, defense or appeal thereof); provided, however, that this indemnity shall only apply to the extent permitted by Section 2 and further provided that with respect to any criminal or penal proceeding or investigation, only to the extent the Indemnitee had no reasonable cause to believe his/her conduct was unlawful.

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     4. Actions by or in the Right of the Company. The Indemnitee shall be entitled to the indemnification rights provided in this Section 4 if the Indemnitee was or is a party or witness or is threatened to be made a party or witness to any threatened, pending or completed action, suit, investigation or proceeding brought by or in the right of the Company to procure a judgment in its favor by reason of the fact that the Indemnitee is or was a director, officer, employee, agent or fiduciary of the Company, or any of its direct or indirect subsidiaries, or is or was serving at the request of the Company, or any of its direct or indirect subsidiaries, as a director, officer, employee, agent or fiduciary of another entity, including, but not limited to, another corporation, partnership, limited liability company, employee benefit plan, joint venture, trust or other enterprise, or by reason of any act or omission by him/her in any such capacity. Pursuant to this Section 4, the Indemnitee shall be indemnified against all Expenses actually and reasonably incurred by him/her in connection with the defense or settlement of such action, suit, investigation or proceeding (including, but not limited to the investigation, defense or appeal thereof); provided, however, that this indemnity shall only apply to the extent permitted by Section 2 and further provided that with respect to any criminal or penal proceeding or investigation, only to the extent the Indemnitee had no reasonable cause to believe his/her conduct was unlawful.

     5. Indemnification for Expenses of Successful Party. Notwithstanding the other provisions of this Agreement, to the extent that the Indemnitee has served on behalf of the Company, or any of its direct or indirect subsidiaries, as a witness or other participant in any class action or proceeding, or has been successful, on the merits or otherwise, in defense of any action, suit, investigation or proceeding referred to in Section 3 and 4 hereof, or in defense of any claim, issue or matter therein, including, but not limited to, the dismissal of any action without prejudice, the Indemnitee shall be indemnified against all Expenses actually and reasonably incurred by the Indemnitee in connection therewith; provided, however, that this indemnity shall only apply to the extent permitted by Section 2.

     6. Partial Indemnification. If the Indemnitee is entitled under any provision of this Agreement to indemnification by the Company for some or a portion of the Expenses, judgments, penalties, fines and amounts paid in settlement actually and reasonably incurred by the Indemnitee in connection with the investigation, defense, appeal or settlement of such suit, action, investigation or proceeding described in Section 3 or 4 hereof, but is not entitled to indemnification for the total amount thereof, the Company shall nevertheless indemnify the Indemnitee for the portion of such Expenses, judgments, penalties, fines and amounts paid in settlement actually and reasonably incurred by the Indemnitee to which the Indemnitee is entitled.

     7. Procedure for Determination of Entitlement to Indemnification.

     (a) To obtain indemnification under this Agreement, the Indemnitee shall submit to the Company a written request, including documentation and information which is reasonably available to the Indemnitee and is reasonably necessary to determine whether and to what extent the Indemnitee is entitled to indemnification. The Secretary of the Company shall, promptly upon receipt of a request for indemnification, advise the Board of Directors in writing that the Indemnitee has requested indemnification. Any Expenses incurred by the Indemnitee in

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connection with the Indemnitee’s request for indemnification hereunder shall be borne by the Company.

     (b) Upon written request by the Indemnitee for indemnification pursuant to Section 3 or 4 hereof, the entitlement of the Indemnitee to indemnification pursuant to the terms of this Agreement shall be determined by the following person or persons, who shall be empowered to make such determination: (i) if a Change in Control (as hereinafter defined) shall have occurred, by Independent Counsel (as hereinafter defined) (unless (x) the Company receives advice from legal counsel that the Board of Directors is required by applicable law to make the determination, in which case the determination shall be made by the Board of Directors in the manner provided for in clause (ii) of this Section 7(b) or (y) the Indemnitee shall request in writing that such determination be made by the Board of Directors in the manner provided for in clause (ii) of this Section 7(b)) in a written opinion to the Board of Directors, a copy of which shall be delivered to the Indemnitee; or (ii) if a Change in Control shall not have occurred, (A)(1) by the Board of Directors of the Company, by a majority vote of Disinterested Directors (as hereinafter defined) even though less than a quorum or (B) if there are no such Disinterested Directors, by Independent Counsel in a written opinion to the Board of Directors, a copy of which shall be delivered to the Indemnitee. Such Independent Counsel shall be selected by the Board of Directors and approved by the Indemnitee. If there are no Disinterested Directors and the Board of Directors and the Indemnitee fail to agree on a mutually acceptable Independent Counsel, either the Board of Directors or the Indemnitee may request the International Chamber of Commerce (“ICC”) to appoint an Independent Counsel in accordance with the provisions regarding the appointment of experts contained in the ICC’s Rules for Expertise. If the person making such determination shall determine that the Indemnitee is entitled to indemnification as to part (but not all) of the application for indemnification, such person shall reasonably prorate such part of indemnification among such claims, issues or matters. If it is so determined that the Indemnitee is entitled to indemnification, payment to the Indemnitee shall be made within ten days after such determination.

     8. Presumptions and Effect of Certain Proceedings.

     (a) In making a determination with respect to entitlement to indemnification, the Indemnitee shall be presumed to be entitled to indemnification hereunder and the Company shall have the burden of proof in the making of any determination contrary to such presumption.

     (b) The termination of any action, suit, investigation or proceeding described in Section 3 or 4 hereof by judgment, order, settlement or conviction, or upon a plea of nolo contendere or its equivalent, shall not, of itself: (a) create a presumption that the Indemnitee did not act in good faith and in a manner he/she reasonably believed to be in the best interest of the Company; or (b) otherwise adversely affect the rights of the Indemnitee to indemnification, except as may be provided herein.

     9. Advancement of Expenses.

     (a) Subject to Section 9(b), all reasonable Expenses actually incurred by the Indemnitee in connection with any threatened or pending action, suit, investigation or proceeding by reason of the fact that the Indemnitee is or was a director, officer, employee, agent or fiduciary of the

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Company shall be paid by the Company in advance of the final disposition of such action, suit, investigation or proceeding, if so requested by the Indemnitee, within 20 days (unless extended by the Board of Directors of the Company) after the receipt by the Company of a statement or statements from the Indemnitee requesting such advance or advances and a copy of any order, invoice, bill or other evidence of such Expenses reasonably acceptable to the Company. The Indemnitee may submit such statements and evidence from time to time. The Indemnitee’s entitlement to such Expenses shall include those incurred in connection with any proceeding by the Indemnitee seeking an adjudication or award in arbitration pursuant to this Agreement. Such statements and evidence shall reasonably evidence the Expenses incurred by the Indemnitee in connection therewith and shall include or be accompanied by a written affirmation by the Indemnitee of the Indemnitee’s good faith belief that the Indemnitee has met the standard of conduct necessary for indemnification under this Agreement and an undertaking by or on behalf of the Indemnitee to repay such amount if it is ultimately determined that the Indemnitee is not entitled to be indemnified against such Expenses. Each written undertaking to pay amounts advanced must be an unlimited general obligation but need not be secured, and shall be accepted without reference to financial ability to make repayment.

     (b) The Company’s obligation to advance Expenses pursuant to this Section 9 shall be subject to the condition that if (A) the Board of Directors of the Company, by a majority vote of Disinterested Directors even though less than a quorum or (B) if there are no such Disinterested Directors, by Independent Counsel (selected in the same manner as in Section 7(b)) in a written opinion to the Board of Directors, has determined that the Indemnitee would not be permitted to the advancement of Expenses (or indemnification in respect thereof) under applicable law or under the terms and conditions of this Agreement, including, without limitation, the principles set out in Section 2. If such a determination is made, the Indemnitee shall reimburse the Company for any such amounts theretofore paid by the Company.

     10. Remedies of the Indemnitee in Cases of Determination not to Indemnify or to Advance Expenses. In the event that a determination is made that the Indemnitee is not entitled to indemnification hereunder or if the payment has not been timely made following a determination of entitlement to indemnification pursuant to Section 7, or if Expenses are not advanced pursuant to Section 9, the Indemnitee shall be entitled to a final adjudication by an arbitral tribunal appointed in accordance with Section 25(b). Such proceeding shall be made de novo, and the Indemnitee shall not be prejudiced by reason of a determination (if so made) that the Indemnitee is not entitled to indemnification or advancement of Expenses. If a determination is made pursuant to the terms of Section 7 hereof that the Indemnitee is entitled to indemnification, the Company shall in the absence of any new evidence or facts be bound by such determination and shall be precluded from asserting that such determination has not been made or that the procedure by which such determination was made is not valid, binding and enforceable. If the arbitral tribunal shall determine that the Indemnitee is entitled to any indemnification hereunder, the Company shall pay all reasonable Expenses actually incurred by the Indemnitee in connection with such adjudication (including, but not limited to, any appellate proceedings).

     11. Notification and Defense of Claim. Promptly after receipt by the Indemnitee of notice of the commencement of any action, suit, investigation or proceeding, the Indemnitee will, if a claim in respect thereof is to be made against the Company under this Agreement, notify the

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Company in writing of the commencement thereof; but the omission to so notify the Company will not relieve the Company from any liability that it may have to the Indemnitee otherwise than under this Agreement or otherwise, except to the extent that the Company may suffer material prejudice by reason of such failure. Notwithstanding any other provision of this Agreement, with respect to any such action, suit, investigation or proceeding as to which the Indemnitee gives notice to the Company of the commencement thereof:

     (a) The Company will be entitled to participate therein at its own expense.

     (b) Except as otherwise provided in this Section 11(b), to the extent that it may wish, the Company, jointly with any other indemnifying party similarly notified, shall be entitled to assume the defense thereof with counsel reasonably satisfactory to the Indemnitee. After notice from the Company to the Indemnitee of its election to so assume the defense thereof, the Company shall not be liable to the Indemnitee under this Agreement for any legal or other Expenses subsequently incurred by the Indemnitee in connection with the defense thereof other than reasonable costs of investigation or as otherwise provided below. The Indemnitee shall have the right to employ the Indemnitee’s own counsel in such action or lawsuit, but the fees and Expenses of such counsel incurred after notice from the Company of its assumption of the defense thereof shall be at the expense of the Indemnitee unless (i) the employment of counsel by the Indemnitee has been authorized by the Company, (ii) the Indemnitee shall have reasonably concluded that there may be a conflict of interest between the Company and the Indemnitee in the conduct of the defense of such action and such determination by the Indemnitee shall be supported by an opinion of counsel, which opinion shall be reasonably acceptable to the Company, or (iii) the Company shall not in fact have employed counsel to assume the defense of the action, in each of which cases the fees and Expenses of counsel shall be at the expense of the Company. The Company shall not be entitled to assume the defense of any action, suit, investigation or proceeding brought by or on behalf of the Company or as to which the Indemnitee shall have reached the conclusion provided for in clause (ii) above.

     (c) The Company shall not be liable to indemnify the Indemnitee under this Agreement for any amounts paid in settlement of any action, suit, investigation or proceeding effected without its written consent, which consent shall not be unreasonably withheld. The Company shall not be required to obtain the consent of the Indemnitee to settle any action, suit, investigation or proceeding which the Company has undertaken to defend if the Company assumes full and sole responsibility for such settlement and such settlement grants the Indemnitee a complete and unqualified release in respect of any potential liability.

     (d) If, at the time of the receipt of a notice of a claim pursuant to this Section 11, the Company has director and officer liability insurance in effect, the Company shall give prompt notice of the commencement of such proceeding to the insurers in accordance with the procedures set forth in the respective policies.

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The Company shall thereafter take all necessary or desirable action to cause such insurers to pay, on behalf of the Indemnitee, all amounts payable as a result of such proceeding in accordance with the terms of the policies.

     12. Other Right to Indemnification. The rights of indemnification and advancement of Expenses as provided by this Agreement shall not be deemed exclusive of any other rights to which the Indemnitee may at any time be entitled under applicable law, the Articles, any agreement, a vote of shareholders of the Company or a resolution of directors of the Company, or otherwise.

     13. Director and Officer Liability Insurance. The Company shall maintain directors’ and officers’ liability insurance for so long as the Indemnitee’s services are covered hereunder, provided and to the extent that such insurance is available on a commercially reasonable basis. In the event the Company maintains directors’ and officers’ liability insurance, the Indemnitee shall be named as an insured in such manner as to provide the Indemnitee the same rights and benefits as are accorded to the most favorably insured of the Company’s officers or directors. However, the Company agrees that the provisions hereof shall remain in effect regardless of whether liability or other insurance coverage is at any time obtained or retained by the Company, except that any payments made to, or on behalf of, the Indemnitee under an insurance policy shall reduce the obligations of the Company hereunder.

     14. Attorney’s Fees and Other Expenses to Enforce Agreement. In the event that the Indemnitee is subject to or intervenes in any action, suit, investigation or proceeding in which the validity or enforceability of this Agreement is at issue or seeks an adjudication or award in arbitration to enforce the Indemnitee’s rights under, or to recover damages for breach of, this Agreement the Indemnitee, if he/she prevails in whole or in part in such action, shall be entitled to recover from the Company and shall be indemnified by the Company against any actual expenses for attorneys’ fees and disbursements reasonably incurred by the Indemnitee unless an arbitral tribunal determines that any of the material assertions made by the Indemnitee in such proceeding was not made in good faith or was frivolous.

     15. Effective Date. The provisions of this Agreement shall cover claims, actions, suits, investigations or proceedings whether now pending or hereafter commenced and shall be retroactive to cover acts or omissions or alleged acts or omissions which heretofore have taken place. The Company shall be liable under this Agreement, pursuant to Sections 3 and 4 hereof, for all acts of the Indemnitee while serving as a director and/or officer, notwithstanding the termination of the Indemnitee’s service, if such act was performed or omitted to be performed during the term of the Indemnitee’s service to the Company.

     16. Duration of Agreement. This Agreement shall survive and continue even though the Indemnitee may have terminated his/her service as a director, officer, employee, agent or fiduciary of the Company or as a director, officer, employee, agent or fiduciary of any other entity, including, but not limited to, another corporation, partnership, limited liability company, employee benefit plan, joint venture, trust or other enterprise or by reason of any act or omission by the Indemnitee in any such capacity. This Agreement shall be binding upon the Company and its successors and assigns, including, without limitation, any company or other entity which may have acquired all or substantially all of the Company’s assets or business or

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into which the Company may be consolidated or merged, and shall inure to the benefit of the Indemnitee and his/her successors, assigns, heirs, devisees, executors, administrators or other legal representations. The Company shall require any successor or assignee (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of the business and/or assets of the Company, by written agreement in form and substance reasonably satisfactory to the Company and the Indemnitee, expressly to assume and agree to perform this Agreement in the same manner and to the same extent that the Company would be required to perform if no such succession or assignment had taken place.

     17. Guaranty. To the extent that the Company is unable to provide the indemnification and/or the payment of Expenses to Indemnitee due hereunder, AWAC hereby agrees to assume such obligations, subject to the terms and conditions of this Agreement and any other defenses in law or equity that the Company may have. Should AWAC provide such indemnification and/or the payment of Expenses to Indemnitee under this Agreement, the Indemnitee hereby agrees that it shall reimburse or repay AWAC to the same extent that the Indemnitee would otherwise be required to reimburse or repay to the Company under the terms hereof.

     18. Disclosure of Payments. Except as expressly required by any federal or state securities laws or other federal or state law, neither party shall disclose any payments under this Agreement unless prior approval of the other party is obtained.

     19. Severability. If any provision or provisions of this Agreement shall be held invalid, illegal or unenforceable for any reason whatsoever, (a) the validity, legality and enforceability of the remaining provisions of this Agreement (including, but not limited to, all portions of any Sections of this Agreement containing any such provision held to be invalid, illegal or unenforceable) shall not in any way be affected or impaired thereby and (b) to the fullest extent possible, the provisions of this Agreement (including, but not limited to, all portions of any paragraph of this Agreement containing any such provision held to be invalid, illegal or unenforceable, that are not themselves invalid, illegal or unenforceable) shall be construed so as to give effect to the intent manifest by the provision held invalid, illegal or unenforceable.

     20. Counterparts. This Agreement may be executed in one or more counterparts, each of which shall for all purposes be deemed to be an original but all of which together shall constitute one and the same Agreement.

     21. Captions. The captions and headings used in this Agreement are inserted for convenience only and shall not be deemed to constitute part of this Agreement or to affect the construction thereof.

     22. Definitions. For purposes of this Agreement:

     (a) “Change in Control” shall mean a change in control of the Company occurring after the date hereof of a nature that would be required to be reported in response to Item 6(e) of Schedule 14A of Regulation 14A (or in response to any similar item on any similar schedule or form) promulgated under

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the Act, whether or not the Company is then subject to such reporting requirement; provided, however, that, without limitation, a Change in Control shall include: (i) the acquisition (other than from the Company) after the date hereof by any person, entity or “group” within the meaning of Section 13(d)(3) or 14(d)(2) of the Act (excluding, for this purpose, the Company or its subsidiaries, any employee benefit plan of the Company or its subsidiaries which acquires beneficial ownership of voting securities of the Company, and any qualified institutional investor who meets the requirements of Rule 13d-1(b)(1) promulgated under the Act) of beneficial ownership (within the meaning of Rule 13d-3 promulgated under the Act), of 20% or more of either the then-outstanding shares of common stock or the combined voting power of the Company’s then-outstanding capital stock entitled to vote generally in the election of directors; (ii) individuals who, as of the date hereof, constitute the Board of Directors (the “Incumbent Board”) ceasing for any reason to constitute at least a majority of the Board of Directors, provided that any person becoming a director subsequent to the date hereof whose election, or nomination for election by the Company’s shareholders was approved by a vote of at least a majority of the directors then comprising the Incumbent Board (other than an election or nomination of an individual whose initial assumption of office is in connection with an actual or threatened election contest relating to the election of the directors of the Company) shall be, for purposes of this Agreement, considered as though such person were a member of the Incumbent Board; or (iii) approval by the shareholders of the Company of (A) a reorganization, merger, amalgamation or consolidation, in each case, with respect to which persons who were the shareholders of the Company immediately prior to such reorganization, merger, or consolidation do not, immediately thereafter, own more than 75% of the combined voting power entitled to vote generally in the election of directors of the reorganized, merged, amalgamated, consolidated or other surviving company’s then-outstanding voting securities, (B) a liquidation or dissolution of the Company, or (C) the sale of all or substantially all of the assets of the Company.

     (b) “Disinterested Director” shall mean a director of the Company who is not or was not a party to the action, suit, investigation or proceeding in respect of which indemnification is being sought by the Indemnitee.

     (c) “Expenses” shall include all attorneys’ fees, retainers, court costs, transcript costs, fees of experts, witness fees, travel expenses, duplicating costs, printing and binding costs, telephone charges, postage, delivery service fees and all other disbursements or expenses incurred in connection with prosecuting, defending, preparing to prosecute or defend, investigating or being or preparing to be a witness in any threatened, pending or completed action, suit, investigation or proceeding, whether civil, criminal, administrative or investigative in nature.

     (d) “Independent Counsel” shall mean a law firm or a member of a law firm specializing in Swiss corporate law and who is authorized to practice law in Switzerland and who neither is presently nor in the past five years has been

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retained to represent (i) the Company or the Indemnitee in any matter material to either such party or (ii) any other party to the action, suit, investigation or proceeding giving rise to a claim for indemnification or advancement of Expenses hereunder. Notwithstanding the foregoing, the term “Independent Counsel” shall not include any person who, under the applicable standards of professional conduct then prevailing, would have a conflict of interest in representing either the Company or the Indemnitee in an action to determine the Indemnitee’s right to indemnification under this Agreement.

     23. Entire Agreement, Modification and Waiver. This Agreement constitutes the entire agreement and understanding of the parties hereto regarding the subject matter hereof, and no supplement, modification or amendment of this Agreement (including any amendment of this Section 23) shall be binding unless executed in writing by the parties hereto. No waiver of any of the provisions of this Agreement shall be deemed or shall constitute a waiver of any other provisions hereof (whether or not similar) nor shall such waiver constitute a continuing waiver. No supplement, modification or amendment of this Agreement shall limit or restrict any right of the Indemnitee under this Agreement in respect of any act or omission of the Indemnitee prior to the effective date of such supplement, modification or amendment unless expressly provided therein.

     24. Notices. All notices, requests, demands or other communications hereunder shall be in writing and shall be deemed to have been duly given if (i) delivered by hand with receipt acknowledged by the party to whom said notice or other communication shall have been directed, (ii) mailed by certified or registered mail, return receipt requested with postage prepaid, on the date shown on the return receipt or (iii) delivered by facsimile transmission on the date shown on the facsimile machine report:

(a)	If to the Indemnitee, to:
(b)	If to the Company, to:
	Allied World Assurance Company Holdings, AG 27 Richmond Road Pembroke, Bermuda HM08 Attention: General Counsel

or to such other address as may be furnished to the Indemnitee by the Company or to the Company by the Indemnitee, as the case may be.

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     25. Governing Law; Arbitration.

     (a) The parties hereto agree that this Agreement shall be governed by, and construed in accordance with, the substantive laws of Switzerland.

     (b) Any dispute, controversy or claim arising out of, in connection with or relating to this Agreement, or the breach thereof, shall be settled, to the exclusion of the ordinary courts, by arbitration administered by the Swiss Chamber of Commerce in accordance with the Swiss Rules of International Arbitration in force on the date when the notice of arbitration is submitted in accordance with the aforementioned Rules. The number of arbitrators shall be three. The seat of the arbitration shall be New York City, New York, United States of America. The arbitral proceedings shall be conducted in the English language.

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     IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the day and year first above written.

ALLIED WORLD ASSURANCE COMPANY HOLDINGS, AG
 

By:  

Name:  

Title:  

ALLIED WORLD ASSURANCE COMPANY, LTD
 

By:  

Name:  

Title:  

INDEMNITEE
 

By:  

Name:  

ACCEPTED AND AGREED,
as to the eighth recital hereto

ALLIED WORLD ASSURANCE COMPANY HOLDINGS, LTD
 

By:  

Name:  

Title:  

EX-10.5

Exhibit 10.5

Sacheinlagevertrag
Contribution in Kind Agreement

zwischen
between

Allied World Assurance Company Holdings, Ltd, 27 Richmond Road, Pembroke HM 08, Bermuda

(“Allied World Bermuda”)

and

Allied World Assurance Company Holdings, AG, c/o RA Andreas Derungs, Poststrasse 12, 6301 Zug, Switzerland

(“Allied World Schweiz”)
(“Allied World Switzerland”)

(gemeinsam die “Parteien”)
(collectively the “Parties”)

Präambel | Recitals

(A)

Allied World Bermuda ist eine nach dem Recht von Bermuda gegründete Gesellschaft (“exempted company”) mit Sitz in Pembroke, Bermuda (Registernummer 31279), deren Namenaktien (“common voting shares”) an der New York Stock Exchange (NYSE) unter dem Symbol «AWH» kotiert sind. Das Aktienkapital (“authorized share capital”) von Allied World Bermuda beträgt USD 10'000'000, eingeteilt in 333'333'333 Namenaktien (“common shares”) mit einem Nennwert von je USD 0.03, die als Namenaktien mit Stimmrecht oder Namenaktien ohne Stimmrecht ausgegeben werden können.

Allied World Bermuda is an exempted company incorporated under the laws of Bermuda with its registered Office in Pembroke, Bermuda (registration number 31279), the common voting shares of which are listed on the New York Stock Exchange (NYSE) under the symbol “AWH”. The authorized share capital of Allied World Bermuda amounts to USD 10,000,000 and is divided into 333,333,333 common shares with a par value of USD 0.03 each, which may be issued as common voting shares or as common non-voting shares.

(B)

Allied World Schweiz ist eine nach schweizerischem Recht gegründete Aktiengesellschaft mit Sitz in Zug (bzw. nach Eintrag der Sitzverlegung in Baar), Kanton Zug (Firmennummer CH-170.3.034.503-3), die zu 100% von Allied World Bermuda gehalten wird. Das im Handelsregister eingetragene Aktienkapital von Allied World Schweiz beträgt CHF 100’000, eingeteilt in 10’000’000 Namenaktien mit einem Nennwert von je CHF 0.01. An einer ausserordentlichen Generalversammlung von Allied World Schweiz, die am 30. November 2010 stattgefunden hat, (die “Ausserordentliche Generalversammlung”) wurde unter anderem Folgendes beschlossen:

Allied World Switzerland is a company limited by shares incorporated under the laws of Switzerland with a registered Office in Zug (respectively Baar upon registration of the change of the registered offices), Canton of Zug (company number CH-170.3.034.503-3), that is wholly-owned by Allied World Bermuda. The share capital of Allied World Switzerland recorded in the commercial register amounts to CHF 100,000, divided into 10,000,000 registered shares with a par value of CHF 0.01 each. At an extraordinary general meeting of shareholders of Allied World Switzerland, having taken place on 30 November, 2010, (the “Extraordinary General Meeting”) the following was resolved, among other things:

(1)	die Namenaktien von Allied World Schweiz mit einem Nennwert von je CHF 0.01 in Namenaktien mit einem Nennwert von je CHF 15.00 zusammenzulegen (die Zusammenlegung”) und unmittelbar anschliessend
	to consolidate the registered shares of Allied World Switzerland with a par value of CHF 0.01 each into registered shares with a par value of CHF 15.00 each (hereinafter, the “Consolidation”) and, immediately subsequent thereto,

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(2)

das Aktienkapital von Allied World Schweiz von CHF 100'000 gegen Sacheinlage um CHF 596'919'540 (unter Eliminierung der bei der Zusammenlegung der bisherigen Namenaktien entstehenden Fraktionen) auf CHF 597'019'530 durch die Ausgabe von 39'794'636 voll liberierten Namenaktien von je CHF 15.00 Nennwert zu einem Ausgabepreis von je CHF 58.74 pro Aktie im Rahmen einer ordentlichen Kapitalerhöhung (die “Ordentliche Kapitalerhöhung”) zu erhöhen sowie

to increase the share capital of Allied World Switzerland of CHF 100,000 by an amount of CHF 596,919,540 to CHF 597,019,530 (eliminating the fractional shares resulting from the Consolidation of the previous registered shares) through the issuance of 39,794,636 fully paid registered shares with a par value of CHF 15.00 each at an issue price of CHF 58.74 per share by way of an ordinary capital increase (the “Ordinary Capital Increase”), as well as

(3)	ein Partizipationskapital in der Höhe von CHF 3'035'100 zu schaffen durch die Ausgabe von 202'340 voll liberierten Namenpartizipationsscheinen von je CHF 15.00 Nennwert zu einem Ausgabepreis von je CHF 58.74 pro Namenpartizipationsschein (die “Schaffung von Partizipationskapital”).
	to create a participation capital in the amount of CHF 3,035,100 through the issuance of 202,340 fully paid registered participation certificates with a par value of CHF 15.00 each at an issue price of CHF 58.74 per registered participation certificate (the “Creation of Participation Capital”).

	Die Durchführung der Zusammenlegung, der Ordentlichen Kapitalerhöhung und der Schaffung von Partizipationskapital erfolgt im Rahmen der nachfolgend beschriebenen Transaktionen.
	The implementation of the Consolidation, the Ordinary Capital Increase and the Creation of Participation Capital occurs in the course of the transactions as further described below.
(C)	Gemäss den Bestimmungen des Scheme of Arrangement nach dem Recht von Bermuda in Sachen Allied World Bermuda (das “Scheme of Arrangement”), welches von den Aktionären von Allied World Bermuda am 18. November 2010 genehmigt wurde und welchem Allied World Schweiz zustimmt, hat jeder Aktionär von Allied World Bermuda, der im Zeitpunkt unmittelbar vor Rechtskraft des Scheme of Arrangement Namenaktien mit Stimmrecht (“common voting shares”) bzw. Namenaktien ohne Stimmrecht (“common non-voting shares”) hält, Anspruch auf eine Namenaktie von Allied World Schweiz im Austausch für eine Namenaktie mit Stimmrecht (“common voting share”) von Allied World Bermuda bzw. auf einen Namenpartizipationsschein von Allied World Schweiz im Austausch für eine Namenaktie ohne Stimmrecht (“common non-voting share”) von Allied World Bermuda. Dieser Aktientausch, als Folge dessen Allied World Bermuda eine

3

hundertprozentige Tochtergesellschaft von Allied World Schweiz wird, erfolgt im Einzelnen wie folgt:

Pursuant to the terms of a certain Scheme of Arrangement under the laws of Bermuda in the matter of Allied World Bermuda (the “Scheme of Arrangement”), approved by the shareholders of Allied World Bermuda on November 18, 2010 and hereby assented to by Allied World Switzerland, each holder of Allied World Bermuda common voting shares and each holder of common non-voting shares immediately prior to the Scheme of Arrangement becoming effective has the right to receive in exchange for each common voting share in Allied World Bermuda one registered share in Allied World Switzerland and for each common non-voting share in Allied World Bermuda one registered participation certificate in Allied World Switzerland. This share exchange, as a result of which Allied World Bermuda will become a wholly-owned subsidiary of Allied World Switzerland, shall be executed as follows:

(4)	Mit Wirksamwerden und nach Massgabe des Scheme of Arrangement werden sämtliche bisherigen Namenaktien mit Stimmrecht (“common voting shares”) und Namenaktien ohne Stimmrecht (“common non-voting shares”) von Allied World Bermuda annulliert (die “Annullierten Aktien”). Die vorgenannte Rechtsfolge tritt kraft des Rechts von Bermuda ein.
	With the Scheme of Arrangement becoming effective in accordance with its terms, and by way of the Scheme of Arrangement, the then issued common voting shares and common non-voting shares in Allied World Bermuda are being cancelled (the “Cancelled Shares”), in each case by operation of Bermuda law.
(5)	Als weitere Rechtsfolge des Scheme of Arrangement gibt Allied World Bermuda bei dessen Wirksamwerden gemäss dessen Bestimmungen eine Anzahl neuer Namenaktien (“common voting shares”) und eine Anzahl neuer Namenaktien ohne Stimmrecht (“common non-voting shares”), die der Anzahl Annullierter Aktien entspricht, aus und bringt diese neuen Namenaktien mit Stimmrecht (“common voting shares”) und Namenaktien ohne Stimmrecht (“common non-voting shares”) im Rahmen einer Sacheinlage in Allied World Schweiz ein (wobei diese neuen Namenaktien sämtliche ausgegebenen und ausstehenden Namenaktien mit Stimmrecht und Namenaktien ohne Stimmrecht von Allied World Bermuda darstellen), und trägt Allied World Schweiz als Aktionärin mit Stimmrecht bzw. Aktionärin ohne Stimmrecht in das Aktienregister ein.
	As a further consequence of, and with, the Scheme of Arrangement becoming effective in accordance with its terms, Allied World Bermuda is issuing and alloting such a number of new common voting shares and such a number of new common non-voting shares as equals the number of Cancelled Shares to Allied World Switzerland by way of a contribution in kind (such new common shares will constitute all of the issued and

4

outstanding common voting shares and common non-voting shares in Allied World Bermuda), and is registering Allied World Switzerland in its register of members as the holder of such shares.

(6)

Gestützt auf die Ermächtigung der Ausserordentlichen Generalversammlung führt der Verwaltungsrat von Allied World Schweiz (x) die Ordentliche Kapitalerhöhung durch mittels (a) Sacheinlage aller im Rahmen des Scheme of Arrangement neu ausgegebenen Namenaktien mit Stimmrecht (“common voting shares”) von Allied World Bermuda mit einem Nennwert von je USD 0.03 und (b) anschliessender Ausgabe von 39'794'636 neuen Namenaktien von Allied World Schweiz mit einem Nennwert von je CHF 15.00 und (y) die Schaffung von Partizipationskapital mittels (a) Sacheinlage aller im Rahmen des Scheme of Arrangement neu ausgegebenen Namenaktien ohne Stimmrecht (“common non-voting shares”) von Allied World Bermuda mit einem Nennwert von je USD 0.03 und (b) anschliessender Ausgabe von 202'340 neuen Namenpartizipationsscheinen von Allied World Schweiz mit einem Nennwert von je CHF 15.00 sowie (z) mittels Eintragung der Ordentlichen Kapitalerhöhung, der Schaffung von Partizipationskapital und der geänderten Statuten von Allied World Schweiz im Handelsregister.

The board of directors of Allied World Switzerland, on the basis of the authorization of the Extraordinary General Meeting shall carry out (x) the Ordinary Capital Increase by way of (a) a contribution in kind of all common voting shares in Allied World Bermuda with a par value of USD 0.03 each being newly issued in connection with the Scheme of Arrangement and (b) subsequent issuance of 39,794,636 new registered shares in Allied World Switzerland with a par value of CHF 15.00 each and (y) the Creation of Participation Capital by way of (a) a contribution in kind of all common non-voting shares in Allied World Bermuda with a par value of USD 0.03 each being newly issued in connection with the Scheme of Arrangement and (b) subsequent issuance of 202,340 new registered participation certificates in Allied World Switzerland with a par value of CHF 15.00 each as well as (z) registration of the Ordinary Capital Increase, the Creation of Participation Capital and the revised articles of association of Allied World Switzerland in the commercial register.

(7) Allied World Schweiz gibt sämtliche im Rahmen der Ordentlichen Kapitalerhöhung geschaffenen neuen Namenaktien mit einem Nennwert von je CHF 15.00 und sämtliche im Rahmen der Schaffung von Partizipationskapital geschaffenen neuen Namenpartizipationsscheine mit einem Nennwert von je CHF 15.00 an Allied World Bermuda aus, die im eigenen Namen aber auf Rechnung der Aktionäre, die im Zeitpunkt unmittelbar vor der Rechtswirksamkeit des Scheme of Arrangement ausgegebene Namenaktien mit und ohne Stimmrecht (“common voting and non-voting shares”) halten, und

5

bezüglich eigener Namenaktien im eigenen Namen und auf eigene Rechnung, handelt. Allied World Bermuda überträgt, vertreten durch einen von Allied World Bermuda bestimmten Umtauschagenten (“Umtauschagent”), nach Massgabe des Scheme of Arrangement 39'794'636 neue Namenaktien und 202'340 neue Namenpartizipationsscheine an die Aktionäre von Allied World Bermuda (wobei auf den Zeitpunkt unmittelbar vor der Rechtswirksamkeit des Scheme of Arrangement abgestellt wird).

Allied World Switzerland will issue all registered shares with a par value of CHF 15.00 each, that are being newly created in the Ordinary Capital Increase, and all registered participation certificates with a par value of CHF 15.00 each, that are being newly created in the Creation of Participation Capital, to Allied World Bermuda, which acts in its own name but on the account of the holders of the common voting and non-voting shares in Allied World Bermuda outstanding immediately prior to the Scheme of Arrangement becoming effective, and with respect to treasury shares in its own name and on its own account. Allied World Bermuda, acting through an exchange agent to be appointed by Allied World Bermuda (“Exchange Agent”), will transfer in compliance with the terms of the Scheme of Arrangement 39,794,636 new registered shares and 202,340 new registered participation certificates to the holders of Allied World Bermuda common voting and non-voting shares, respectively, outstanding immediately prior to the Scheme of Arrangement becoming effective.

(D)	Die Aktionäre von Allied World Bermuda haben am 18. November 2010, und der Supreme Court of Bermuda (der “Supreme Court”) hat am 26. November 2010 das Scheme of Arrangement genehmigt. Eine Kopie des Genehmigungsentscheids des Supreme Courts wurde am 30. November 2010 beim Registrar of Companies eingereicht, womit das Scheme of Arrangement wirksam geworden ist.
	The shareholders of Allied World Bermuda approved the Scheme of Arrangement on November 18, 2010 and the Supreme Court of Bermuda (the “Supreme Court”) sanctioned the Scheme of Arrangement on November 26, 2010. A copy of the Supreme Court order was filed with the Registrar of Companies on November 30, 2010, upon which the Scheme of Arrangement has become effective.

Das Folgende ist vereinbart | It is agreed as follows:

1.	Sacheinlage | Contribution in Kind
	Allied World Bermuda verpflichtet sich hiermit, unmittelbar nach Wirksamwerden des Scheme of Arrangement gemäss dessen Bestimmungen 39'794'636 neue Namenaktien mit Stimmrecht (“common voting shares”), mit einem Nennwert von je USD 0.03, von ihrem Kapital (die “Allied World Bermuda Aktien mit Stimmrecht”) an Allied World Schweiz auszugeben, diese mittels Sacheinlage in Allied World Schweiz

6

einzubringen (die “Sacheinlage für Aktien”) und Allied World Schweiz als Aktionärin in das Aktienregister einzutragen.

Allied World Bermuda hereby agrees, immediately upon the Scheme of Arrangement becoming effective in accordance with its terms to issue and allot 39,794,636 new common voting shares, with a par value of USD 0.03 each, in its capital (the “Allied World Bermuda Voting Shares”) to Allied World Switzerland by way of a contribution in kind (the “Contribution in Kind for Shares”) and to record Allied World Switzerland in its register of members as the holder of such Allied World Bermuda Voting Shares.

Allied World Bermuda verpflichtet sich hiermit, unmittelbar nach Wirksamwerden des Scheme of Arrangement gemäss dessen Bestimmungen 202'340 neue Namenaktien ohne Stimmrecht (“common non-voting shares”), mit einem Nennwert von je USD 0.03, von ihrem Kapital (die “Allied World Bermuda Aktien ohne Stimmrecht”, zusammen mit den Allied World Bermuda Aktien ohne Stimmrecht die “Allied World Bermuda Aktien”) an Allied World Schweiz auszugeben, diese mittels Sacheinlage in Allied World Schweiz einzubringen (die “Sacheinlage für Partizipationsscheine”) und Allied World Schweiz als Aktionärin in das Aktienregister einzutragen.

Allied World Bermuda hereby agrees, immediately upon the Scheme of Arrangement becoming effective in accordance with its terms, to issue and allot 202,340 new common non-voting shares, with a par value of USD 0.03 each, in its capital (the “Allied World Bermuda Non-Voting Shares”, together with the Allied World Bermuda Voting Shares the “Allied World Bermuda Shares”) to Allied World Switzerland by way of a contribution in kind (the “Contribution in Kind for Participation Certificates”) and to record Allied World Switzerland in its register of members as the holder of such Allied World Bermuda Non-Voting Shares.

2.

Ausgabe der Allied World Schweiz Aktien und Partizipationsscheine | Issuance of Allied World Switzerland Shares and Participation Certificates

Die Parteien vereinbaren, dass der Übernahmepreis für die Sacheinlage für Aktien CHF 2'337'536'918.64 beträgt. Dieser Wert basiert auf (i) der Anzahl der bei Handelsschluss an der New York Stock Exchange (NYSE) am 30. November 2010 (“Stichzeitpunkt”) ausgegebenen Allied World Bermuda Aktien mit Stimmrecht (d.h. 39'794'636 Aktien mit Stimmrecht), (ii) dem Schlusskurs der Allied World Bermuda Aktien mit Stimmrecht zum Stichzeitpunkt (d.h. USD 58.74 je Aktie mit Stimmrecht) und (iii) dem von Bloomberg veröffentlichten CHF/USD Wechselkurs um 22:00 Uhr, Schweizer Zeit, am 30. November 2010 (d.h. 1.00 CHF/USD, “Wechselkurs”), vor deren Annullierung gemäss Präambel (C)(1).

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The Parties hereby agree that the value of the Contribution in Kind for Shares amounts to CHF 2,337,536,918.64. Such value has been determined on the basis of (i) the number of Allied World Bermuda Voting Shares issued on November 30, 2010 (“Record Date”) (i.e. 39,794,636 common voting shares), (ii) the closing price of the common voting shares in Allied World Bermuda at close of trading on the New York Stock Exchange on November 30, 2010 (i.e. USD 58.74 per common voting share), and (iii) the CHF/USD exchange rate published by Bloomberg prevailing at 22:00, Swiss time, on November 30, 2010 (i.e. 1.00 CHF/USD, “Exchange Rate”), prior to their cancellation. in accordance with Recital (C)(1).

Die Parteien vereinbaren, dass der Übernahmepreis für die Sacheinlage für Partizipationsscheine CHF 11'885'451.60 beträgt. Dieser Wert basiert auf (i) der Anzahl der zum Stichzeitpunkt ausgegebenen Allied World Bermuda Aktien ohne Stimmrecht (d.h. 202'340 Aktien ohne Stimmrecht), (ii) dem Schlusskurs der Allied World Bermuda Aktien mit Stimmrecht zum Stichzeitpunkt (d.h. USD 58.74 je Aktie mit Stimmrecht) und (iii) dem Wechselkurs vor deren Annullierung gemäss Präambel (C)(1).

The Parties hereby agree that the value of the Contribution in Kind for Participation Certificates amounts to CHF 11,885,451.60. Such value has been determined on the basis of (i) the number of Allied World Bermuda Non-Voting Shares issued on the Record Date (i.e. 202,340 common non-voting shares), (ii) the closing price of the common voting shares in Allied World Bermuda at close of trading on the New York Stock Exchange on November 30, 2010 (i.e. USD 58.74 per common voting share), and (iii) the Exchange Rate, prior to their cancellation. in accordance with Recital (C)(1).

Der Übernahmepreis für die Sacheinlage für Aktien wird durch Ausgabe von 39'794'636 neuen, auf dem Wege der ordentlichen Kapitalerhöhung geschaffenen voll liberierten Namenaktien von Allied World Schweiz mit einem Nennwert von je CHF 15.00 (“Allied World Schweiz Aktien”) an Allied World Bermuda, die im eigenen Namen aber auf Rechnung der Aktionäre von Allied World Bermuda, die im Zeitpunkt unmittelbar vor der Rechtswirksamkeit des Scheme of Arrangement ausgegebenen Namenaktien mit Stimmrecht (“common voting shares”) halten, und bezüglich eigener Namenaktien im eigenen Namen und auf eigene Rechnung handelt, zum Ausgabepreis von je CHF 58.74 pro Aktie getilgt. Der den gesamten Nennwert der Allied World Schweiz Aktien übersteigende Teil des Übernahmepreises für die Sacheinlage für Aktien von CHF 1'740'617'378.64 verbleibt Allied World Schweiz als Agio.

As consideration for the Contribution in Kind for Shares, Allied World Switzerland shall issue to Allied World Bermuda, acting in its own name but on the account of the holders of Allied World Bermuda common voting shares outstanding immediately prior to the Scheme of Arrangement becoming effective, and with respect to treasury shares in its own name and on its own account, 39,794,636 fully paid registered shares in Allied World Switzerland with a par value of

8

CHF 15.00 each (the “Allied World Switzerland Shares”) at an issue price of CHF 58.74 for each, such shares to be created by way of the Ordinary Capital Increase. The difference between the value of the Contribution in Kind for Shares and the total par value of the Allied World Switzerland Shares of CHF 1,740,617,378.64 shall constitute additional paid in capital of Allied World Switzerland.

Der Übernahmepreis für die Sacheinlage für Partizipationsscheine wird durch Ausgabe von 202'340 neuen, auf dem Wege der Schaffung von Partizipationskapital geschaffenen voll liberierten Namenpartizipationsscheinen von Allied World Schweiz mit einem Nennwert von je CHF 15.00 (“Allied World Schweiz Partizipationsscheine”) an Allied World Bermuda, die im eigenen Namen aber auf Rechnung der Aktionäre von Allied World Bermuda handelt, die im Zeitpunkt unmittelbar vor der Rechtswirksamkeit des Scheme of Arrangement ausgegebene Namenaktien ohne Stimmrecht (“common non-voting shares”) halten, zum Ausgabepreis von je CHF 58.74 pro Partizipationsschein getilgt. Der den gesamten Nennwert der Allied World Schweiz Partizipationsscheine übersteigende Teil des Übernahmepreises für die Sacheinlage für Partizipationsscheine von CHF 8'850'351.60 verbleibt Allied World Schweiz als Agio.

As consideration for the Contribution in Kind for Participation Certificates, Allied World Switzerland shall issue to Allied World Bermuda, acting in its own name but on the account of the holders of Allied World Bermuda common non-voting shares outstanding immediately prior to the Scheme of Arrangement becoming effective, 202,340 fully paid registered participation certificates in Allied World Switzerland with a par value of CHF 15.00 each (the “Allied World Switzerland Participation Certificates”) at an issue price of CHF 58.74 for each, such participation certificates to be created by way of the Creation of Participation Capital. The difference between the value of the Contribution in Kind for Participation Certificates and the total par value of the Allied World Switzerland Participation Certificates of CHF 8,850,351.60 shall constitute additional paid in capital of Allied World Switzerland.

Die Ausserordentliche Generalversammlung von Allied World Schweiz hat den Verwaltungsrat dazu beauftragt, die Zusammenlegung, die Ordentliche Kapitalerhöhung und die Schaffung von Partizipationskapital durchzuführen. Der Verwaltungsrat bzw. dazu ermächtigte Verwaltungsratsmitglieder werden die dazu erforderlichen Handlungen am Vollzugsdatum gemäss Ziffer 6.2 nachstehend durchführen.

Allied World Switzerland’s Extraordinary General Meeting has mandated the board of directors to carry out the Consolidation, the Ordinary Capital Increase and the Creation of Participation Capital. On the Closing Date, pursuant to Section 6.2 below, the board of directors

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or authorized board members of Allied World Switzerland will take the actions necessary therefor.

3.	Verfügungsmacht | Right to freely dispose
	Allied World Schweiz kann unmittelbar nach der Eintragung der ordentlichen Kapitalerhöhung bzw. der Schaffung von Partizipationskapital in das Handelsregister, d.h. am Vollzugsdatum gemäss Ziffer 6.1 nachstehend, über die Allied World Bermuda Aktien mit Stimmrecht und die Allied World Bermuda Aktien ohne Stimmrecht frei verfügen.
	Allied World Switzerland has the right to freely dispose of the Allied World Bermuda Voting Shares and the Allied World Bermuda Non-Voting Shares immediately upon the registration of the Ordinary Capital Increase and the Creation of Participation Capital, respectively, in the commercial register, i.e., on the Closing Date pursuant to Section 6.1 below.

4.	Übergang von Nutzen und Gefahr | Passing of Risks and Benefits
	Nutzen und Gefahr bezüglich der Allied World Bermuda Aktien, einschliesslich Stimmrechte (soweit anwendbar) und Dividendenberechtigung (sowie alle anderen mit den Allied World Bermuda Aktien zusammenhängenden Rechte) liegen unmittelbar mit der Eintragung der Ordentlichen Kapitalerhöhung von Allied World Schweiz in das Handelsregister bei Allied World Schweiz.
	Risks and benefits relating to the Allied World Bermuda Shares, including the voting rights (if applicable) and the entitlement to dividends (as well as any other rights associated with the Allied World Bermuda Shares) are vested in Allied World Switzerland immediately upon registration of the Ordinary Capital Increase of Allied World Switzerland in the commercial register.

5.	Zusicherungen und Gewährleistungen | Representations and Warranties
	Allied World Bermuda gibt gegenüber Allied World Schweiz folgende Zusicherungen und Garantien ab:
	Allied World Bermuda hereby represents and warrants to Allied World Switzerland that:

(a) Allied World Bermuda ist eine nach dem Recht von Bermuda gültig gegründete und fortbestehende Gesellschaft (“exempted company”);

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Allied World Bermuda is an exempted company validly incorporated and existing under the laws of Bermuda;

(b)	Unmittelbar nach Vornahme der Vollzugshandlungen gemäss Ziffer 6.2(a) nachstehend sind die Allied World Bermuda Aktien gültig ausgegeben und voll einbezahlt worden oder gelten als voll einbezahlt;
	Immediately upon completion of the closing actions pursuant to Section 6.2(a) below, the Allied World Bermuda Shares will have been duly issued and paid or credited as fully paid;
(c)	Die Allied World Bermuda Aktien sind bei Vollzug frei von Pfandrechten, Optionen oder anderen Rechten Dritter jeglicher Art (insbesondere Bezugsrechten); und
	At the Closing, the Allied World Bermuda Shares shall be free from all security interests, options or other third party rights of any nature whatsoever (including, without limitation, pre-emptive rights); and
(d)	Unmittelbar nach Eintragung der Ordentlichen Kapitalerhöhung bzw. der Schaffung von Partizipationskapital in das Handelsregister kann Allied World Schweiz über die Allied World Bermuda Aktien frei verfügen.
	Allied World Switzerland shall have the right to freely dispose of the Allied World Bermuda Shares immediately upon registration of the Ordinary Capital Increase and the Creation of Participation Capital, respectively, in the commercial register.

6.	Vollzug | Closing
6.1	Vollzugsdatum | Closing Date
	Die Ausgabe und Sacheinlage der neu ausgegebenen Allied World Bermuda Aktien an Allied World Schweiz (der “Vollzug”) erfolgt vor oder an dem Tag, an welchem die Ordentliche Kapitalerhöhung und die Schaffung von Partizipationskapital in das Tagebuch des Handelsregisters des Kantons Zug eingetragen werden (das “Vollzugsdatum”).
	The issuance and allotment by way of a contribution in kind of the newly issued Allied World Bermuda Shares to Allied World Switzerland (the “Closing”) shall occur on or before the day on which the Ordinary Capital Increase and the Creation of Participation Capital are registered

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in the daily journal (Tagebuch) of the commercial register of the Canton of Zug (the “Closing Date”).

6.2	Vollzugshandlungen | Closing Actions
	Die Parteien nehmen bei Vollzug die folgenden Vollzugshandlungen vor:
	The Parties shall carry out the following closing actions:

(a)

Allied World Bermuda nimmt alle nach dem Recht von Bermuda erforderlichen Handlungen vor (oder lässt diese vornehmen), und unterzeichnet und händigt alle nach diesem Recht erforderlichen Dokumente aus (oder veranlasst deren Unterzeichnung und Aushändigung), um die Allied World Bermuda Aktien rechtswirksam an Allied World Schweiz auszugeben, mittels Sacheinlage in Allied World Schweiz einzubringen und nach Eintragung der Sacheinlage in das Handelsregister diese als Aktionärin in das Aktienregister einzutragen.

Allied World Bermuda shall take, or cause to be taken, all actions and shall execute and deliver, or cause to be executed and delivered, all documents necessary pursuant to the laws of Bermuda to achieve the legally effective issuance and allotment of the Allied World Bermuda Shares to Allied World Switzerland and their contribution by way of a contribution in kind to Allied World Switzerland and to register Allied World Switzerland, upon registration of the Contribution in Kind in the commercial register, as the holder of the Allied World Bermuda Shares in its register of members.

(b)

Allied World Bermuda, welche im eigenen Namen aber auf Rechnung der Aktionäre von Allied World Bermuda, die im Zeitpunkt unmittelbar vor der Rechtswirksamkeit des Scheme of Arrangement ausgegebene Namenaktien mit Stimmrecht (“common voting shares”) und Namenaktien ohne Stimmrecht (“non-voting common shares”) halten, und bezüglich eigener Namenaktien im eigenen Namen und auf eigene Rechnung handelt, zeichnet alle neu auszugebenden Allied World Schweiz Aktien und alle neu auszugebenden Allied World Schweiz Partizipationsscheine in Übereinstimmung mit Artikel 630 und Artikel 650 des Schweizerischen Obligationenrechts (OR).

Nach Ausgabe der Allied World Schweiz Aktien und der Allied World Schweiz Partizipationsscheine an Allied World Bermuda, die im eigenen Namen aber auf Rechnung der Aktionäre der Allied World Bermuda, die im Zeitpunkt unmittelbar vor der Rechtswirksamkeit des Scheme of Arrangement ausgegebene Namenaktien mit Stimmrecht (“common voting shares”) und Namenaktien ohne Stimmrecht (“common non-voting shares”) halten, und

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	bezüglich eigener Namenaktien im eigenen Namen und auf eigene Rechnung handelt, nimmt der Umtauschagent auf Instruktion von Allied World Bermuda alle erforderlichen Handlungen vor, oder lässt diese vornehmen, um die an Allied World Bermuda ausgegebenen Allied World Schweiz Aktien und Allied World Schweiz Partizipationsscheine gemäss diesem Vertrag und entsprechend dem Verteilschlüssel gemäss Präambel (C)(4) vorstehend rechtswirksam an die Aktionäre der Allied World Bermuda (wobei auf den Zeitpunkt unmittelbar vor der Rechtswirksamkeit des Scheme of Arrangement abgestellt wird, d.h. auf den Handelsschluss an der NYSE am 30. November 2010) zu übertragen.
	Allied World Bermuda, acting in its own name but on the account of the holders of Allied World Bermuda common shares outstanding immediately prior to the Scheme of Arrangement becoming effective, and with respect to treasury shares in its own name and on its own account, shall subscribe to all Allied World Switzerland Shares and all Allied World Switzerland Participation Certificates to be newly issued in accordance with article 630 and article 650 of the Swiss Code of Obligations (CO).
	Upon issuance of the Allied World Switzerland Shares and the Allied World Switzerland Participation Certificates to Allied World Bermuda, acting in its own name but on the account of the holders of Allied World Bermuda common shares outstanding immediately prior to the Scheme of Arrangement becoming effective, and with respect to treasury shares in its own name and its own account, the Exchange Agent shall, on the instructions of Allied World Bermuda, take or cause to be taken such actions necessary to transfer the Allied World Switzerland Shares and the Allied World Switzerland Participation Certificates issued to Allied World Bermuda to the holders of Allied World Bermuda Shares outstanding immediately prior to the Scheme of Arrangement becoming effective (i.e., at the close of trading on the NYSE on November 30, 2010), such transfers to occur in accordance with this Agreement and the allocation key set forth in Recital (C)(4) above.
(c)	Allied World Schweiz, handelnd durch den Verwaltungsrat bzw. die dazu ermächtigten Verwaltungsratsmitglieder oder, soweit gesetzlich zulässig, bevollmächtigte Mitarbeiter oder Vertreter, nimmt alle nach schweizerischem Gesellschaftsrecht erforderlichen Schritte vor, um die Allied World Schweiz Aktien und die Allied World Schweiz Partizipationsscheine rechtswirksam auszugeben, insbesondere:
	Allied World Switzerland, acting through the board of directors or authorized members of the board of directors or, if legally permissible, through authorized officers or representatives, shall take all actions necessary under Swiss corporate law to achieve the

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legally effective issuance of the Allied World Switzerland Shares and the Allied World Switzerland Participation Certificates, in particular:

(i)	Gibt der Verwaltungsrat den Kapitalerhöhungsbericht gemäss Artikel 652e OR ab;
	The board of directors shall adopt the report on the capital increase in accordance with article 652e CO;
(ii)	Veranlasst der Verwaltungsrat die Revisionsstelle der Allied World Schweiz, die Prüfungsbestätigung gemäss Artikel 652f OR abzugeben;
	The board of directors shall cause the auditor of Allied World Switzerland to release the audit confirmation in accordance with article 652f CO;
(iii)	Nimmt der Verwaltungsrat den Zeichnungsschein von Allied World Bermuda entgegen;
	The board of directors shall accept the subscription form of Allied World Bermuda;
(iv)	Beschliesst der Verwaltungsrat die Durchführung der Ordentlichen Kapitalerhöhung und der Schaffung von Partizipationskapital und stellt in öffentlicher Urkunde fest, dass die Bedingungen von Art. 652g OR erfüllt sind; und
	The board of directors shall resolve on the implementation of the Ordinary Capital Increase and of the Creation of Participation Capital and declare by way of a public deed that the conditions set forth in article 652g CO have been satisfied; and
(v)	Reicht der Verwaltungsrat eine Handelsregisteranmeldung betreffend die Zusammenlegung, die Ordentliche Kapitalerhöhung und die Schaffung von Partizipationskapital sowie die übrigen von der Ausserordentlichen Generalversammlung genehmigten Änderungen der Statuten von Allied World Bermuda, einschliesslich (ohne Einschränkung) die Schaffung eines genehmigten und eines bedingten Kapitals, ein, zusammen mit den entsprechenden Belegen.

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The board of directors shall apply for registration of the Consolidation, the Ordinary Capital Increase and the Creation of Participation Capital as well as the other amendments to the articles of association of Allied World Switzerland, as approved at the Extraordinary General Meeting, including, without limitation, the creation of authorized and conditional capital, together with the relevant annexes.

7.	Allgemeine Bestimmungen | General Provisions
7.1	Kosten | Costs
	Die im Zusammenhang mit dem Abschluss dieses Vertrags und dem Vollzug der gemäss diesen Vertrag vorgesehenen Transaktionen anfallenden Kosten trägt Allied World Schweiz.
	The costs incurred in connection with the execution of this Agreement and the consummation of the transactions contemplated hereby shall be borne by Allied World Switzerland.
7.2	Sprache | Language
	Falls sich zwischen der deutschen und der englischen Fassung dieses Vertrags Abweichungen ergeben, gilt die deutsche Fassung.
	In the event of deviations between the English and the German version of this Agreement, the German version shall prevail.
7.3	Anwendbares Recht und Gerichtsstand | Applicable Law and Place of Jurisdiction
	Dieser Vertrag untersteht schweizerischem Recht. Gerichtsstand ist Zug, Schweiz.
	This Agreement shall be governed by and construed in accordance with Swiss law. Place of jurisdiction is Zug, Switzerland

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UNTERSCHRIFTEN / SIGNATORIES

Zug, 30. November 2010 / November 30, 2010
	Allied World Assurance Company Holdings, Ltd
	/s/ Wesley D. Dupont
	Name: Wesley D. Dupont	Name:
	Allied World Assurance Company Holdings, AG
	/s/ Scott A. Carmilani
	Name: Scott A. Carmilani	Name:

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EX-99.1

Exhibit 99.1

Press Release

FOR IMMEDIATE RELEASE

ALLIED WORLD ANNOUNCES COMPLETION OF REDOMESTICATION OF
HOLDING COMPANY FROM BERMUDA TO SWITZERLAND

PEMBROKE, BERMUDA, December 1, 2010 — Allied World Assurance Company Holdings, AG (NYSE: AWH) announced today that it has completed the previously announced redomestication of its group holding company from Bermuda to Switzerland. The new Swiss holding company will remain subject to the U.S. Securities and Exchange Commission reporting requirements, the applicable corporate governance rules of the New York Stock Exchange (NYSE) and will continue to report its consolidated financial results in U.S. dollars and under U.S. generally accepted accounting principles. Shareholders will continue to receive dividends in U.S. dollars, and the company’s common shares will continue to trade on the NYSE under the ticker symbol “AWH.”

On November 18, 2010, Allied World’s shareholders approved the proposed scheme of arrangement related to the company’s redomestication to Switzerland. The redomestication became official following the filing of the Supreme Court of Bermuda’s approval of the scheme of arrangement with the Bermuda Registrar of Companies.

Scott Carmilani, Allied World’s President and Chief Executive Officer, said “We are very excited about our redomestication to Switzerland. We have grown from a Bermuda based start-up in 2001 to a global organization with over 700 employees located in eight different countries. We see this redomestication as a strategic step in our company’s progression as we move forward with the goal of enhancing our presence around the world.”

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 branches and affiliates. Our insurance and reinsurance subsidiaries are rated A (Excellent) by A.M. Best Company, and our Lloyd’s Syndicate 2232 is rated A+ (Strong) by Standard & Poor’s and Fitch. Please visit our website at 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

Press Release

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 difficulties we may encounter with the transition to a new jurisdiction of incorporation and statutory regime; 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.

Media:

Faye Cook

Vice President, Marketing & Communications

+1-441-278-5406

faye.cook@awac.com

Investors:

Keith J. Lennox

Investor Relations Officer

+1-646-794-0750

keith.lennox@awac.com

Website: www.awac.com