XML 95 R37.htm IDEA: XBRL DOCUMENT  v2.3.0.11
Condensed Consolidated Guarantor Financial Statements (Tables)
6 Months Ended
Jun. 30, 2011
Condensed Consolidated Guarantor Financial Statements  
Schedule of Condensed Consolidating Balance Sheet
                                       
    Allied World     Allied World                      
    Switzerland     Bermuda     Other Allied             Allied World  
    (Parent     (Subsidiary     World     Consolidating     Switzerland  
As of June 30, 2011   Guarantor)     Issuer)     Subsidiaries     Adjustments     Consolidated  
ASSETS:
                                       
Investments
  $     $     $ 7,502,765     $     $ 7,502,765  
Cash and cash equivalents
    70,587       38,402       631,815             740,804  
Insurance balances receivable
                653,002             653,002  
Prepaid reinsurance
                223,269             223,269  
Reinsurance recoverable
                1,013,951             1,013,951  
Net deferred acquisition costs
                112,083             112,083  
Goodwill
                268,376             268,376  
Intangible assets
                55,342             55,342  
Balances receivable on sale of investments
                106,486             106,486  
Investments in subsidiaries
    2,978,767       1,990,580             (4,969,347 )      
Due (to) from subsidiaries
    (1,771 )     (7,421 )     9,192              
Other assets
    216       61,229       173,196       (53,620 )     181,021  
 
                             
Total assets
  $ 3,047,799     $ 2,082,790     $ 10,749,477     $ (5,022,967 )   $ 10,857,099  
 
                             
LIABILITIES:
                                       
Reserve for losses and loss expenses
  $     $     $ 5,251,304     $     $ 5,251,304  
Unearned premiums
                1,184,676             1,184,676  
Reinsurance balances payable
                132,661             132,661  
Balances due on purchases of investments
                358,837             358,837  
Senior notes
          797,823                   797,823  
Accounts payable and accrued liabilities
    3,382       18,074       65,925             87,381  
 
                             
Total liabilities
    3,382       815,897       6,993,403             7,812,682  
 
                             
Total shareholders' equity
    3,044,417       1,266,893       3,756,074       (5,022,967 )     3,044,417  
 
                             
Total liabilities and shareholders' equity
  $ 3,047,799     $ 2,082,790     $ 10,749,477     $ (5,022,967 )   $ 10,857,099  
 
                             

                                         
    Allied World     Allied World                      
    Switzerland     Bermuda     Other Allied             Allied World  
    (Parent     (Subsidiary     World     Consolidating     Switzerland  
As of December 31, 2010   Guarantor)     Issuer)     Subsidiaries     adjustments     Consolidated  
ASSETS:
                                       
Investments
  $     $     $ 7,183,554     $     $ 7,183,554  
Cash and cash equivalents
    138,488       125,663       492,844             756,995  
Insurance balances receivable
                529,927             529,927  
Prepaid reinsurance
                187,287             187,287  
Reinsurance recoverable
                927,588             927,588  
Net deferred acquisition costs
                96,803             96,803  
Goodwill
                268,376             268,376  
Intangible assets
                56,876             56,876  
Balances receivable on sale of investments
                188,408             188,408  
Investments in subsidiaries
    2,944,975       1,981,158             (4,926,133 )      
Due (to) from subsidiaries
    (7,143 )     (9,419 )     16,562              
Other assets
          8,801       223,016             231,817  
 
                             
Total assets
  $ 3,076,320     $ 2,106,203     $ 10,171,241     $ (4,926,133 )   $ 10,427,631  
 
                             
LIABILITIES:
                                       
Reserve for losses and loss expenses
  $     $     $ 4,879,188     $     $ 4,879,188  
Unearned premiums
                962,203             962,203  
Reinsurance balances payable
                99,732             99,732  
Balances due on purchases of investments
                506,978             506,978  
Senior notes
          797,700                   797,700  
Accounts payable and accrued liabilities
    500       18,111       87,399             106,010  
 
                             
Total liabilities
    500       815,811       6,535,500             7,351,811  
 
                             
Total shareholders' equity
    3,075,820       1,290,392       3,635,741       (4,926,133 )     3,075,820  
 
                             
Total liabilities and shareholders' equity
  $ 3,076,320     $ 2,106,203     $ 10,171,241     $ (4,926,133 )   $ 10,427,631  
 
                             
Schedule of Condensed Consolidating Income Statement
                                       
    Allied World     Allied World                      
    Switzerland     Bermuda     Other Allied             Allied World  
    (Parent     (Subsidiary     World     Consolidating     Switzerland  
For the three months ended June 30, 2011   Guarantor)     Issuer)     Subsidiaries     Adjustments     Consolidated  
REVENUES:
                                       
Gross premiums written
  $     $     $ 519,598     $     $ 519,598  
Premiums ceded
                (123,795 )           (123,795 )
 
                             
Net premiums written
                395,803             395,803  
Change in unearned premiums
                (40,496 )           (40,496 )
 
                             
Net premiums earned
                355,307             355,307  
Net investment income
    15       8       52,345             52,368  
Net realized investment gains
                58,878             58,878  
 
                             
 
    15       8       466,530             466,553  
 
                             
EXPENSES:
                                       
Net losses and loss expenses
                235,813             235,813  
Acquisition costs
                42,971             42,971  
General and administrative expenses
    4,746       1,483       60,972             67,201  
Amortization and impairment of intangible assets
                766             766  
Interest expense
          13,745                   13,745  
Foreign exchange loss (gain)
    3       (17 )     1,198             1,184  
Income tax expense
                11,073             11,073  
 
                             
 
    4,749       15,211       352,793             372,753  
 
                             
Income (loss) before equity in earnings of consolidated
                                       
subsidiaries
    (4,734 )     (15,203 )     113,737             93,800  
Equity in earnings of consolidated subsidiaries
    98,534                   (98,534 )      
 
                             
NET INCOME (LOSS)
  $ 93,800     $ (15,203 )   $ 113,737     $ (98,534 )   $ 93,800  
 
                             

                                         
    Allied World     Allied World                      
    Switzerland     Bermuda     Other Allied             Allied World  
    (Parent     (Subsidiary     World     Consolidating     Switzerland  
For the three months ended June 30, 2010   Guarantor)     Issuer)     Subsidiaries     Adjustments     Consolidated  
REVENUES:
                                       
Gross premiums written
  $     $     $ 493,847     $     $ 493,847  
Premiums ceded
                (124,052 )           (124,052 )
 
                             
Net premiums written
                369,795             369,795  
Change in unearned premiums
                (30,871 )           (30,871 )
 
                             
Net premiums earned
                338,924             338,924  
Net investment income
          20       65,574             65,594  
Net realized investment gains (losses)
          (3,958 )     98,891             94,933  
Net impairment charges recognized in earnings
                             
Other income
                616             616  
 
                             
 
          (3,938 )     504,005             500,067  
 
                             
EXPENSES:
                                       
Net losses and loss expenses
                188,722             188,722  
Acquisition costs
                37,938             37,938  
General and administrative expenses
          3,168       64,921             68,089  
Amortization and impairment of intangible assets
                891             891  
Interest expense
          9,531                   9,531  
Foreign exchange loss
                559             559  
Income tax expense
                10,378             10,378  
 
                             
 
          12,699       303,409             316,108  
 
                             
Income (loss) before equity in earnings of consolidated subsidiaries
          (16,637 )     200,596             183,959  
Equity in earnings of consolidated subsidiaries
          200,596             (200,596 )      
 
                             
NET INCOME (LOSS)
  $     $ 183,959     $ 200,596     $ (200,596 )   $ 183,959  
 
                             

                                         
    Allied World     Allied World                      
    Switzerland     Bermuda     Other Allied             Allied World  
    (Parent     (Subsidiary     World     Consolidating     Switzerland  
For the six months ended June 30, 2011   Guarantor)     Issuer)     Subsidiaries     Adjustments     Consolidated  
REVENUES:
                                       
Gross premiums written
  $     $     $ 1,080,286     $     $ 1,080,286  
Premiums ceded
                (203,612 )           (203,612 )
 
                             
Net premiums written
                876,674             876,674  
Change in unearned premiums
                (186,491 )           (186,491 )
 
                             
Net premiums earned
                690,183             690,183  
Net investment income
    45       22       102,509             102,576  
Net realized investment gains
                109,254             109,254  
Net impairment charges recognized in earnings
                             
Other income
                             
 
                             
 
    45       22       901,946             902,013  
 
                             
EXPENSES:
                                       
Net losses and loss expenses
                540,265             540,265  
Acquisition costs
                81,053             81,053  
General and administrative expenses
    5,810       4,229       125,118             135,157  
Amortization and impairment of intangible assets
                1,533             1,533  
Interest expense
          27,487                   27,487  
Foreign exchange loss (gain)
    (1 )     224       519             742  
Income tax expense
                13,356             13,356  
 
                             
 
    5,809       31,940       761,844             799,593  
 
                             
Income (loss) before equity in earnings of consolidated subsidiaries
    (5,764 )     (31,918 )     140,102             102,420  
Equity in earnings of consolidated subsidiaries
    108,184                   (108,184 )      
 
                             
NET INCOME (LOSS)
  $ 102,420     $ (31,918 )   $ 140,102     $ (108,184 )   $ 102,420  
 
                             

                                         
    Allied World     Allied World                      
    Switzerland     Bermuda     Other Allied             Allied World  
    (Parent     (Subsidiary     World     Consolidating     Switzerland  
For the six months ended June 30, 2010   Guarantor)     Issuer)     Subsidiaries     Adjustments     Consolidated  
REVENUES:
                                       
Gross premiums written
  $     $     $ 998,010     $     $ 998,010  
Premiums ceded
                (194,923 )           (194,923 )
 
                             
Net premiums written
                803,087             803,087  
Change in unearned premiums
                (125,839 )           (125,839 )
 
                             
Net premiums earned
                677,248             677,248  
Net investment income
          21       134,475             134,496  
Net realized investment gains
          (3,958 )     176,378             172,420  
Net impairment charges recognized in earnings
                (168 )           (168 )
Other income
                913             913  
 
                             
 
          (3,937 )     988,846             984,909  
 
                             
EXPENSES:
                                       
Net losses and loss expenses
                420,876             420,876  
Acquisition costs
                78,722             78,722  
General and administrative expenses
          6,651       124,901             131,552  
Amortization and impairment of intangible assets
                1,783             1,783  
Interest expense
          19,059                   19,059  
Foreign exchange loss
                1,635             1,635  
Income tax expense
                13,583             13,583  
 
                             
 
          25,710       641,500             667,210  
 
                             
Income (loss) before equity in earnings of consolidated subsidiaries
          (29,647 )     347,346             317,699  
Equity in earnings of consolidated subsidiaries
          347,346             (347,346 )      
 
                             
NET INCOME (LOSS)
  $     $ 317,699     $ 347,346     $ (347,346 )   $ 317,699  
 
                             
Schedule of Condensed Consolidating Cash Flows
                                       
    Allied World     Allied World                      
    Switzerland     Bermuda     Other Allied             Allied World  
    (Parent     (Subsidiary     World     Consolidating     Switzerland  
For the six months ended June 30, 2011   Guarantor)     Issuer)     Subsidiaries     Adjustments     Consolidated  
CASH FLOWS PROVIDED BY (USED IN) OPERATING ACTIVITIES:
                                       
Net income
  $ 102,420     $ (31,918 )   $ 140,102     $ (108,184 )   $ 102,420  
Adjustments to reconcile net income to cash Provided by operating activities:
                                       
Equity in earnings of consolidated subsidiaries
    (108,184 )                 108,184        
Dividends received from subsidiaries
                             
Stock compensation expense
    457             11,655             12,112  
Amortization of discount on senior notes
          122                   122  
Other assets
    (216 )     (928 )     (358,363 )           (359,507 )
Accounts payable and accrued liabilities
    (2,490 )     (36 )     611,415             608,889  
Interest payable
                             
Balances due to subsidiaries
                             
 
                             
Net cash provided by (used in) operating activities
    (8,013 )     (32,760 )     404,809             364,036  
 
                             
CASH FLOWS USED IN INVESTING ACTIVITIES:
                                       
Net cash paid for acquisition
                             
Purchase of fixed maturity investments — available for sale
                (352 )           (352 )
 
Purchase of fixed maturity investments — trading
                (3,949,447 )           (3,949,447 )
Purchases of equity securities and other invested assets
                (485,750 )           (485,750 )
 
Sales of fixed maturity investments — available for sale
                560,794             560,794  
Sales of fixed maturity investments — trading
                3,503,758             3,503,758  
 
Sale of equity securities and other invested assets
                72,362             72,362  
Other
    (4,496 )           31,700             27,204  
 
                             
Net cash used in investing activities
    (4,496 )           (266,935 )           (271,431 )
 
                             
CASH FLOWS (USED IN) PROVIDED BY FINANCING ACTIVITIES:
                                       
Dividends paid
                             
Proceeds from the exercise of stock options
    4,824                         4,824  
Share repurchase
    (60,000 )                       (60,000 )
Repurchase of founder warrants
          (53,620 )                 (53,620 )
Stock compensation funding due from subsidiaries
                             
Capital contribution
                             
Other
    (216 )     (881 )     1,097              
 
                             
Net cash (used in) provided by financing activities
    (55,392 )     (54,501 )     1,097             (108,796 )
 
                             
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS
    (67,901 )     (87,261 )     138,971             (16,191 )
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD
    138,488       125,663       492,844             756,995  
 
                             
CASH AND CASH EQUIVALENTS, END OF PERIOD
  $ 70,587     $ 38,402     $ 631,815     $     $ 740,804  
 
                             
                                         
    Allied World     Allied World                      
    Switzerland     Bermuda     Other Allied             Allied World  
    (Parent     (Subsidiary     World     Consolidating     Switzerland  
For the six months ended June 30, 2010   Guarantor)     Issuer)     Subsidiaries     Adjustments     Consolidated  
CASH FLOWS PROVIDED BY (USED IN) OPERATING ACTIVITIES:
                                       
Net income
  $     $ 317,699     $ 347,346     $ (347,346 )   $ 317,699  
Adjustments to reconcile net income to cash provided by operating activities:
                                       
Equity in earnings of consolidated subsidiaries
          (347,346 )           347,346        
Dividends received from subsidiaries
          80,000             (80,000 )      
Stock compensation expense
          295       17,159             17,454  
Amortization of discount on senior notes
          65                   65  
Other assets
          847       (343,427 )           (342,580 )
Accounts payable and accrued liabilities
          5,789       305,356             311,145  
Interest payable
                             
 
                             
Net cash provided by (used in) operating activities
          57,349       326,434       (80,000 )     303,783  
 
                             
CASH FLOWS USED IN INVESTING ACTIVITIES:
                                       
Purchase of fixed maturity investments — available for sale
                (113,118 )           (113,118 )
 
Purchase of fixed maturity investments — trading
                (6,927,637 )           (6,927,637 )
Purchases of equity securities and other invested assets
                (203,011 )           (203,011 )
 
Sales of fixed maturity investments — available for sale
                1,827,800             1,827,800  
Sales of fixed maturity investments — trading
                5,344,007             5,344,007  
Sale of equity securities and other invested assets
                3,155             3,155  
Other
          (2,097 )     (16,759 )           (18,856 )
 
                             
Net cash used in investing activities
          (2,097 )     (85,563 )           (87,660 )
 
                             
CASH FLOWS (USED IN) PROVIDED BY FINANCING ACTIVITIES:
                                       
Dividends paid
          (20,109 )     (80,000 )     80,000       (20,109 )
Proceeds from the exercise of stock options
          3,576                   3,576  
Stock repurchase
          (49,089 )                 (49,089 )
 
                             
Net cash (used in) provided by financing activities
          (65,622 )     (80,000 )     80,000       (65,622 )
 
                             
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
          (10,370 )     160,871             150,501  
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD
          53,849       238,339             292,188  
 
                             
CASH AND CASH EQUIVALENTS, END OF PERIOD
  $     $ 43,479     $ 399,210     $     $ 442,689