Condensed Consolidated Guarantor Financial Statements (Tables)

9 Months Ended

Sep. 30, 2011

Condensed Consolidated Guarantor Financial Statements [Abstract]

Schedule Of Condensed Consolidating Balance Sheet

	Allied World			Allied World
	Switzerland			Bermuda			Other Allied					Allied World
	(Parent			(Subsidiary			World		Consolidating			Switzerland
As of September 30, 2011	Guarantor)			Issuer)			Subsidiaries		Adjustments			Consolidated
ASSETS:
Investments	$	—		$	—		$	7,540,759	$	—		$	7,540,759
Cash and cash equivalents		98,941			18,545			751,834		—			869,320
Insurance balances receivable		—			—			607,270		—			607,270
Prepaid reinsurance		—			—			218,514		—			218,514
Reinsurance recoverable		—			—			1,009,643		—			1,009,643
Net deferred acquisition costs		—			—			115,070		—			115,070
Goodwill		—			—			268,376		—			268,376
Intangible assets		—			—			54,576		—			54,576
Balances receivable on sale of investments		—			—			349,327		—			349,327
Investments in subsidiaries		2,935,337			3,767,463			—		(6,702,800	)		—
Due (to) from subsidiaries		(4,800	)		(6,886	)		11,686		—			—
Other assets		1,672			60,574			141,666		(53,620	)		150,292
Total assets	$	3,031,150		$	3,839,696		$	11,068,721	$	(6,756,420	)	$	11,183,147
LIABILITIES:
Reserve for losses and loss expenses	$	—		$	—		$	5,245,553	$	—		$	5,245,553
Unearned premiums		—			—			1,158,842		—			1,158,842
Reinsurance balances payable		—			—			95,463		—			95,463
Balances due on purchases of investments		—			—			754,451		—			754,451
Senior notes		—			797,885			—		—			797,885
Accounts payable and accrued liabilities		28,075			13,601			86,203		—			127,879
Total liabilities		28,075			811,486			7,340,512		—			8,180,073
Total shareholders' equity		3,003,075			3,028,210			3,728,209		(6,756,420	)		3,003,074
Total liabilities and shareholders' equity	$	3,031,150		$	3,839,696		$	11,068,721	$	(6,756,420	)	$	11,183,147

	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			3,635,741			—		(6,580,716	)		—
Due (to) from subsidiaries		(7,143	)		(9,419	)		16,562		—			—
Other assets		—			8,801			223,016		—			231,817
Total assets	$	3,076,320		$	3,760,786		$	10,171,241	$	(6,580,716	)	$	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			2,944,975			3,635,741		(6,580,716	)		3,075,820
Total liabilities and shareholders' equity	$	3,076,320		$	3,760,786		$	10,171,241	$	(6,580,716	)	$	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 September 30, 2011	Guarantor)			Issuer)			Subsidiaries			Adjustments		Consolidated
REVENUES:
Gross premiums written	$	—		$	—		$	442,698		$	—	$	442,698
Premiums ceded		—			—			(92,438	)		—		(92,438	)
Net premiums written		—			—			350,260			—		350,260
Change in unearned premiums		—			—			21,080			—		21,080
Net premiums earned		—			—			371,340			—		371,340
Net investment income		7			3			47,873			—		47,883
Net realized investment losses		—			—			(130,809	)		—		(130,809	)
Other income		35,000			—			—			—		35,000
		35,007			3			288,404			—		323,414
EXPENSES:
Net losses and loss expenses		—			—			205,546			—		205,546
Acquisition costs		—			—			39,680			—		39,680
General and administrative expenses		2,110			913			62,984			—		66,007
Amortization and impairment of intangible assets		—			—			767			—		767
Interest expense		—			13,748			—			—		13,748
Foreign exchange loss (gain)		(10	)		907			2,069			—		2,966
Income tax expense		2,730			—			2,942			—		5,672
		4,830			15,568			313,988			—		334,386
Income (loss) before equity in earnings of consolidated subsidiaries		30,177			(15,565	)		(25,584	)		—		(10,972	)
Equity in earnings of consolidated subsidiaries		(41,148	)		(26,615	)		—			67,763		—
NET (LOSS) INCOME	$	(10,971	)	$	(42,180	)	$	(25,584	)	$	67,763	$	(10,972	)

	Allied World		Allied World
	Switzerland		Bermuda			Other Allied						Allied World
	(Parent		(Subsidiary			World			Consolidating			Switzerland
For the Three Months Ended September 30, 2010	Guarantor)		Issuer)			Subsidiaries			Adjustments			Consolidated
REVENUES:
Gross premiums written	$	—	$	—		$	378,445		$	—		$	378,445
Premiums ceded		—		—			(76,276	)		—			(76,276	)
Net premiums written		—		—			302,169			—			302,169
Change in unearned premiums		—		—			37,327			—			37,327
Net premiums earned		—		—			339,496			—			339,496
Net investment income		—		22			59,457			—			59,479
Net realized investment gains (losses)		—		—			116,930			—			116,930
Net impairment charges recognized in earnings		—		—			—			—			—
Other income		—		—			—			—			—
		—		22			515,883			—			515,905
EXPENSES:
Net losses and loss expenses		—		—			126,988			—			126,988
Acquisition costs		—		—			41,919			—			41,919
General and administrative expenses		—		3,174			66,697			—			69,871
Amortization and impairment of intangible assets		—		—			892			—			892
Interest expense		—		9,533			—			—			9,533
Foreign exchange gain		—		(555	)		(832	)		—			(1,387	)
Income tax expense		—		—			13,569			—			13,569
		—		12,152			249,233			—			261,385
Income (loss) before equity in earnings of consolidated subsidiaries		—		(12,130	)		266,650			—			254,520
Equity in earnings of consolidated subsidiaries		—		266,650			—			(266,650	)		—
NET INCOME	$	—	$	254,520		$	266,650		$	(266,650	)	$	254,520

	Allied World			Allied World
	Switzerland			Bermuda			Other Allied						Allied World
	(Parent			(Subsidiary			World			Consolidating			Switzerland
For the Nine Months Ended September 30, 2011	Guarantor)			Issuer)			Subsidiaries			Adjustments			Consolidated
REVENUES:
Gross premiums written	$	—		$	—		$	1,522,984		$	—		$	1,522,984
Premiums ceded		—			—			(296,050	)		—			(296,050	)
Net premiums written		—			—			1,226,934			—			1,226,934
Change in unearned premiums		—			—			(165,411	)		—			(165,411	)
Net premiums earned		—			—			1,061,523			—			1,061,523
Net investment income		51			25			150,383			—			150,459
Net realized investment losses		—			—			(21,555	)		—			(21,555	)
Net impairment charges recognized in earnings		—			—			—			—			—
Other income		35,000			—			—			—			35,000
		35,051			25			1,190,351			—			1,225,427
EXPENSES:
Net losses and loss expenses		—			—			745,811			—			745,811
Acquisition costs		—			—			120,733			—			120,733
General and administrative expenses		7,919			5,141			188,104			—			201,164
Amortization and impairment of intangible assets		—			—			2,300			—			2,300
Interest expense		—			41,235			—			—			41,235
Foreign exchange loss (gain)		(11	)		1,131			2,588			—			3,708
Income tax expense		2,730			—			16,298			—			19,028
		10,638			47,507			1,075,834			—			1,133,979
Income (loss) before equity in earnings of consolidated subsidiaries		24,413			(47,482	)		114,517			—			91,448
Equity in earnings of consolidated subsidiaries		67,035			114,243			—			(181,278	)		—
NET INCOME	$	91,448		$	66,761		$	114,517		$	(181,278	)	$	91,448

	Allied World		Allied World
	Switzerland		Bermuda			Other Allied						Allied World
	(Parent		(Subsidiary			World			Consolidating			Switzerland
For the Nine Months Ended September 30, 2010	Guarantor)		Issuer)			Subsidiaries			Adjustments			Consolidated
REVENUES:
Gross premiums written	$	—	$	—		$	1,376,455		$	—		$	1,376,455
Premiums ceded		—		—			(271,199	)		—			(271,199	)
Net premiums written		—		—			1,105,256			—			1,105,256
Change in unearned premiums		—		—			(88,512	)		—			(88,512	)
Net premiums earned		—		—			1,016,744			—			1,016,744
Net investment income		—		43			193,932			—			193,975
Net realized investment (losses) gains		—		(3,958	)		293,308			—			289,350
Net impairment charges recognized in earnings		—		—			(168	)		—			(168	)
Other income		—		—			913			—			913
		—		(3,915	)		1,504,729			—			1,500,814
EXPENSES:
Net losses and loss expenses		—		—			547,864			—			547,864
Acquisition costs		—		—			120,641			—			120,641
General and administrative expenses		—		9,825			191,598			—			201,423
Amortization and impairment of intangible assets		—		—			2,675			—			2,675
Interest expense		—		28,592			—			—			28,592
Foreign exchange loss (gain)		—		(555	)		803			—			248
Income tax expense		—		—			27,152			—			27,152
		—		37,862			890,733			—			928,595
Income (loss) before equity in earnings of consolidated subsidiaries		—		(41,777	)		613,996			—			572,219
Equity in earnings of consolidated subsidiaries		—		613,996			—			(613,996	)		—
NET INCOME	$	—	$	572,219		$	613,996		$	(613,996	)	$	572,219

Schedule Of Condensed Consolidating Cash Flows

	Allied World			Allied World
	Switzerland			Bermuda			Other Allied						Allied World
	(Parent			(Subsidiary			World			Consolidating			Switzerland
For the Nine Months Ended September 30, 2011	Guarantor)			Issuer)			Subsidiaries			Adjustments			Consolidated
CASH FLOWS PROVIDED BY (USED IN) OPERATING ACTIVITIES:
Net income	$	91,448		$	66,761		$	114,517		$	(181,278	)	$	91,448
Adjustments to reconcile net income to cash provided by operating activities:
Equity in earnings of consolidated subsidiaries		(67,035	)		(114,243	)		—			181,278			—
Stock compensation expense		650			—			16,267			—			16,917
Amortization of discount on senior notes		—			185			—			—			185
Other assets		(1,673	)		(871	)		(180,114	)		—			(182,658	)
Accounts payable and accrued liabilities		10,928			740			559,880			—			571,548
Interest payable		—			(5,250	)		—			—			(5,250	)
Net cash provided by (used in) operating activities		34,318			(52,678	)		510,550			—			492,190
CASH FLOWS USED IN INVESTING ACTIVITIES:
Purchase of fixed maturity investments — available for sale		—			—			(727	)		—			(727	)
Purchase of fixed maturity investments — trading		—			—			(5,209,039	)		—			(5,209,039	)
Purchases of equity securities and other invested assets		—			—			(611,930	)		—			(611,930	)
Sales of fixed maturity investments — available for sale		—			—			627,392			—			627,392
Sales of fixed maturity investments — trading		—			—			4,772,552			—			4,772,552
Sale of equity securities and other invested assets		—			—			109,157			—			109,157
Other		(4,496	)		—			59,824			—			55,328
Net cash used in investing activities		(4,496	)		—			(252,771	)		—			(257,267	)
CASH FLOWS (USED IN) PROVIDED BY FINANCING ACTIVITIES:
Partial par value reduction		(14,295	)		—			—			—			(14,295	)
Proceeds from the exercise of stock options		5,317			—			—			—			5,317
Share repurchase		(60,000	)		—			—			—			(60,000	)
Repurchase of founder warrants		—			(53,620	)		—			—			(53,620	)
Other		(391	)		(820	)		1,211			—			—
Net cash (used in) provided by financing activities		(69,369	)		(54,440	)		1,211			—			(122,598	)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		(39,547	)		(107,118	)		258,990			—			112,325
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD		138,488			125,663			492,844			—			756,995
CASH AND CASH EQUIVALENTS, END OF PERIOD	$	98,941		$	18,545		$	751,834		$	—		$	869,320

	Allied World		Allied World
	Switzerland		Bermuda			Other Allied						Allied World
	(Parent		(Subsidiary			World			Consolidating			Switzerland
For the Nine Months Ended September 30, 2010	Guarantor)		Issuer)			Subsidiaries			Adjustments			Consolidated
CASH FLOWS PROVIDED BY (USED IN) OPERATING ACTIVITIES:
Net income	$	—	$	572,219		$	613,996		$	(613,996	)	$	572,219
Adjustments to reconcile net income to cash provided by operating activities:
Equity in earnings of consolidated subsidiaries		—		(613,996	)		—			613,996			—
Dividends received from subsidiaries		—		540,000			—			(540,000	)		—
Stock compensation expense		—		428			24,749			—			25,177
Amortization of discount on senior notes		—		98			—			—			98
Other assets		—		(443	)		(361,840	)		—			(362,283	)
Accounts payable and accrued liabilities		—		(16,615	)		190,959			—			174,344
Interest payable		—		9,375			—			—			9,375
Net cash provided by (used in) operating activities		—		491,066			467,864			(540,000	)		418,930
CASH FLOWS USED IN INVESTING ACTIVITIES:
Purchase of fixed maturity investments — available for sale		—		—			(138,918	)		—			(138,918	)
Purchase of fixed maturity investments — trading		—		—			(8,739,173	)		—			(8,739,173	)
Purchases of equity securities and other invested assets		—		—			(261,178	)		—			(261,178	)
Sales of fixed maturity investments - available for sale		—		—			2,057,431			—			2,057,431
Sales of fixed maturity investments — trading		—		—			7,583,380			—			7,583,380
Sale of equity securities and other invested assets		—		—			8,579			—			8,579
Other		—		(2,097	)		(288,307	)		—			(290,404	)
Net cash used in investing activities		—		(2,097	)		221,814			—			219,717
CASH FLOWS (USED IN) PROVIDED BY FINANCING ACTIVITIES:
Dividends paid		—		(28,774	)		(540,000	)		540,000			(28,774	)
Proceeds from the exercise of stock options		—		7,053			—			—			7,053
Stock repurchase		—		(415,009	)		—			—			(415,009	)
Other		—		(32,819	)		—			—			(32,819	)
Net cash (used in) provided by financing activities		—		(469,549	)		(540,000	)		540,000			(469,549	)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		—		19,420			149,678			—			169,098
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD		—		53,849			238,339			—			292,188
CASH AND CASH EQUIVALENTS, END OF PERIOD	$	—	$	73,269		$	388,017		$	—		$	461,286