Condensed Consolidated Guarantor Financial Statements (Tables)

12 Months Ended

Dec. 31, 2011

Condensed Consolidated Guarantor Financial Statements [Abstract]

Schedule Of Condensed Consolidating Balance Sheet

As of December 31, 2011	Allied World Switzerland (Parent Guarantor)			Allied World Bermuda (Subsidiary Issuer)			Other Allied World Subsidiaries		Consolidating Adjustments			Allied World Switzerland Consolidated
ASSETS:
Investments	$	—		$	—		$	7,406,594	$	—		$	7,406,594
Cash and cash equivalents		112,672			8,886			512,438		—			633,996
Insurance balances receivable		—			—			652,158		—			652,158
Prepaid reinsurance		—			—			226,721		—			226,721
Reinsurance recoverable		—			—			1,002,919		—			1,002,919
Net deferred acquisition costs		—			—			100,334		—			100,334
Goodwill		—			—			268,376		—			268,376
Intangible assets		—			—			53,898		—			53,898
Balances receivable on sale of investments		—			—			580,443		—			580,443
Investments in subsidiaries		3,064,066			3,964,585			—		(7,028,651	)		—
Due (to) from subsidiaries		(4,853	)		(6,769	)		11,622		—			—
Other assets		1,504			6,367			188,848		—			196,719
Total assets	$	3,173,389		$	3,973,069		$	11,004,351	$	(7,028,651	)	$	11,122,158
LIABILITIES:
Reserve for losses and loss expenses	$	—		$	—		$	5,225,143	$	—		$	5,225,143
Unearned premiums		—			—			1,078,412		—			1,078,412
Reinsurance balances payable		—			—			124,539		—			124,539
Balances due on purchases of investments		—			—			616,728		—			616,728
Senior notes		—			797,949			—		—			797,949
Accounts payable and accrued liabilities		24,367			17,688			88,310		—			130,365
Total liabilities		24,367			815,637			7,133,132		—			7,973,136
Total shareholders' equity		3,149,022			3,157,432			3,871,219		(7,028,651	)		3,149,022
Total liabilities and shareholders' equity	$	3,173,389		$	3,973,069		$	11,004,351	$	(7,028,651	)	$	11,122,158

As of December 31, 2010	Allied World Switzerland (Parent Guarantor)			Allied World Bermuda (Subsidiary Issuer)			Other Allied World Subsidiaries		Consolidating adjustments			Allied World Switzerland 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			3,683,454			—		(6,628,429	)		—
Due (to) from subsidiaries		(7,143	)		(9,419	)		16,562		—			—
Other assets		—			8,801			223,016		—			231,817
Total assets	$	3,076,320		$	3,808,499		$	10,171,241	$	(6,628,429	)	$	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			2,992,688			3,635,741		(6,628,429	)		3,075,820
Total liabilities and shareholders' equity	$	3,076,320		$	3,808,499		$	10,171,241	$	(6,628,429	)	$	10,427,631

Schedule Of Condensed Consolidating Income Statement

For the year ended December 31, 2011	Allied World Switzerland (Parent Guarantor)			Allied World Bermuda (Subsidiary Issuer)			Other Allied World Subsidiaries			Consolidating adjustments			Allied World Switzerland Consolidated
REVENUES:
Gross premiums written	$	—		$	—		$	1,939,521		$	—		$	1,939,521
Premiums ceded		—			—			(405,755	)		—			(405,755	)
Net premiums written		—			—			1,533,766			—			1,533,766
Change in unearned premiums		—			—			(76,774	)		—			(76,774	)
Net premiums earned		—			—			1,456,992			—			1,456,992
Net investment income		64			26			195,858			—			195,948
Net realized investment gains (losses)		—			(53,620	)		10,077			53,620			10,077
Net impairment charges recognized in earnings		—			—			—			—			—
Other income		101,744			—			—			—			101,744
		101,808			(53,594	)		1,662,927			53,620			1,764,761
EXPENSES:														—
Net losses and loss expenses		—			—			959,156			—			959,156
Acquisition costs		—			—			167,295			—			167,295
General and administrative expenses		13,354			5,823			252,479			—			271,656
Amortization and impairment of intangible assets		—			—			2,978			—			2,978
Interest expense		—			54,989			—			—			54,989
Foreign exchange loss (gain)		(9	)		978			2,190			—			3,159
Income tax expense		7,940			—			23,040			—			30,980
		21,285			61,790			1,407,138			—			1,490,213
Income (loss) before equity in earnings of consolidated subsidiaries		80,523			(115,384	)		255,789			53,620			274,548
Equity in earnings of consolidated subsidiaries		194,025			309,920			—			(503,945	)		—
NET INCOME	$	274,548		$	194,536		$	255,789		$	(450,325	)	$	274,548

For the Year Ended December 31, 2010	Allied World Switzerland (Parent Guarantor)			Allied World Bermuda (Subsidiary Issuer)			Other Allied World Subsidiaries			Consolidating adjustments			Allied World Switzerland Consolidated
REVENUES:
Gross premiums written	$	—		$	—		$	1,758,397		$	—		$	1,758,397
Premiums ceded		—			—			(365,942	)		—			(365,942	)
Net premiums written		—			—			1,392,455			—			1,392,455
Change in unearned premiums								(32,907	)		—			(32,907	)
Net premiums earned		—			—			1,359,548			—			1,359,548
Net investment income		16			77			244,050			—			244,143
Net realized investment (losses) gains		—			(3,958	)		289,570			—			285,612
Net impairment charges recognized in earnings		—			—			(168	)		—			(168	)
Other income		—			—			913			—			913
		16			(3,881	)		1,893,913			—			1,890,048
EXPENSES:
Net losses and loss expenses		—			—			707,883			—			707,883
Acquisition costs		—			—			159,489			—			159,489
General and administrative expenses		2,175			15,031			269,351			—			286,557
Amortization and impairment of intangible assets		—			—			3,483			—			3,483
Interest expense		—			40,242			—			—			40,242
Foreign exchange (gain) loss		(7	)		(524	)		975			—			444
Income tax expense		—			—			26,945			—			26,945
		2,168			54,749			1,168,126			—			1,225,043
(Loss) income before equity in earnings of consolidated subsidiaries		(2,152	)		(58,630	)		725,787			—			665,005
Equity in earnings of consolidated subsidiaries		667,157			725,787			—			(1,392,944	)		—
NET INCOME (LOSS)	$	665,005		$	667,157		$	725,787		$	(1,392,944	)	$	665,005

For the Year Ended December 31, 2009	Allied  World Switzerland (Parent Guarantor)		Allied World Bermuda (Subsidiary Issuer)			Other Allied World Subsidiaries			Consolidating adjustments			Allied World Switzerland Consolidated
REVENUES:
Gross premiums written	$	—	$	—		$	1,696,345		$	—		$	1,696,345
Premiums ceded		—		—			(375,220	)		—			(375,220	)
Net premiums written		—		—			1,321,125			—			1,321,125
Change in unearned premiums		—		—			(4,233	)		—			(4,233	)
Net premiums earned		—		—			1,316,892			—			1,316,892
Net investment income		—		297			300,378			—			300,675
Net realized investment gains		—		—			126,352			—			126,352
Net impairment charges recognized in earnings		—		—			(49,577	)		—			(49,577	)
Other income		—		—			1,506			—			1,506
		—		297			1,695,551			—			1,695,848
EXPENSES:
Net losses and loss expenses		—		—			604,060			—			604,060
Acquisition costs		—		—			148,847			—			148,847
General and administrative expenses		—		6,477			242,115			—			248,592
Amortization and impairment of intangible assets		—		—			11,051			—			11,051
Interest expense		—		39,019			—			—			39,019
Foreign exchange loss		—		—			748			—			748
Income tax expense		—		—			36,644			—			36,644
		—		45,496			1,043,465			—			1,088,961
(Loss) income before equity in earnings of consolidated subsidiaries		—		(45,199	)		652,086			—			606,887
Equity in earnings of consolidated subsidiaries		—		652,086			—			(652,086	)		—
NET INCOME (LOSS)	$	—	$	606,887		$	652,086		$	(652,086	)	$	606,887

Schedule Of Condensed Consolidating Cash Flows

For the year ended December 31, 2011	Allied World Switzerland (Parent Guarantor)			Allied World Bermuda (Subsidiary Issuer)			Other Allied World Subsidiaries			Consolidating adjustments			Allied World Switzerland Consolidated
CASH FLOWS PROVIDED BY OPERATING ACTIVITIES:
Net income	$	274,548		$	194,536		$	255,789		$	(450,325	)	$	274,548
Adjustments to reconcile net income to cash provided by operating activities:
Equity in earnings of consolidated subsidiaries		(194,025	)		(309,920	)		—			503,945			—
Stock compensation expenses		1,297			—			20,997			—			22,294
Amortization of discount on senior notes		—			249			—			—			249
Other assets		(1,504	)		53,155			(243,939	)		(53,620	)		(245,908	)
Accounts payable and accrued liabilities		7,276			(424	)		490,173			—			497,025
Net cash provided by operating activities		87,592			(62,404	)		523,020			—			548,208
CASH FLOWS USED IN INVESTING ACTIVITIES:
Purchase of fixed maturity investments—available for sale		—			—			(727	)		—			(727	)
Purchase of fixed maturity investments—trading		—			—			(7,472,926	)		—			(7,472,926	)
Purchases of equity securities and other invested assets		—			—			(663,084	)		—			(663,084	)
Sales of fixed maturity investments—available for sale		—			—			609,833			—			609,833
Sales of fixed maturity investments—trading		—			—			6,757,787			—			6,757,787
Sale of equity securities and other invested assets		—			—			256,047			—			256,047
Other		(4,496	)		—			8,442			—			3,946
Net cash used in investing activities		(4,496	)		—			(504,628	)		—			(509,124	)
CASH FLOWS USED IN FINANCING ACTIVITIES:
Partial par value reduction		(28,600	)		—			—			—			(28,600	)
Proceeds from the exercise of stock options		6,837			—			—			—			6,837
Share repurchase		(86,700	)		—			—			—			(86,700	)
Repurchase of founder warrants		—			(53,620	)		—			—			(53,620	)
Other		(449	)		(753	)		1,202						—
Net cash used in financing activities		(108,912	)		(54,373	)		1,202			—			(162,083	)
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS		(25,816	)		(116,777	)		19,594			—			(122,999	)
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR		138,488			125,663			492,844			—			756,995
CASH AND CASH EQUIVALENTS, END OF YEAR	$	112,672		$	8,886		$	512,438		$	—		$	633,996

For the Year Ended December 31, 2010	Allied World Switzerland (Parent Guarantor)			Allied World Bermuda (Subsidiary Issuer)			Other Allied World Subsidiaries			Consolidating Adjustments			Allied World Switzerland Consolidated
CASH FLOWS PROVIDED BY OPERATING ACTIVITIES:
Net income	$	665,005		$	667,157		$	725,787		$	(1,392,944	)	$	665,005
Adjustments to reconcile net income to cash provided by operating activities:
Equity in earnings of consolidated subsidiaries		(667,157	)		(725,787	)		—			1,392,944			—
Dividends received from subsidiaries		—			750,000			—			(750,000	)		—
Stock compensation expenses		44			514			33,685			—			34,243
Amortization of discount on senior notes		—			149			—			—			149
Other assets		—			(3,720	)		(246,274	)					(249,994	)
Accounts payable and accrued liabilities		7,643			(276	)		(7,979	)		—			(612	)
Interest payable		—			2,063			—			—			2,063
Net cash provided by operating activities		5,535			690,100			505,219			(750,000	)		450,854
CASH FLOWS (USED IN) PROVIDED BY INVESTING ACTIVITIES:
Purchase of fixed maturity investments — available for sale		—			—			(133,079	)		—			(133,079	)
Purchase of fixed maturity investments — trading		—			—			(12,637,892	)		—			(12,637,892	)
Purchases of other invested assets		—			—			(343,956	)		—			(343,956	)
Sales of fixed maturity investments — available for sale		—			—			2,687,129			—			2,687,129
Sales of fixed maturity investments — trading		—			—			10,917,962			—			10,917,962
Sale of other invested assets		—			—			28,285			—			28,285
Other		—			(2,004	)		(16,382	)					(18,386	)
Net cash (used in) provided by investing activities		—			(2,004	)		502,067			—			500,063
CASH FLOWS USED IN FINANCING ACTIVITIES:
Dividends paid		—			(47,712	)		(750,000	)		750,000			(47,712	)
Proceeds from the exercise of stock options		—			9,598			—			—			9,598
Share repurchase		(27,047	)		(647,615	)		—			—			(674,662	)
Proceeds from senior notes		—			298,632			—			—			298,632
Stock compensation funding due from subsidiaries		—			1,957			(1,957	)		—			—
Capital contribution		160,000			(160,000	)		—			—			—
Other		—			(71,139	)		(827	)					(71,966	)
Net cash used in financing activities		132,953			(616,279	)		(752,784	)		750,000			(486,110	)
NET INCREASE IN CASH AND CASH EQUIVALENTS		138,488			71,814			254,505			—			464,807
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR		—			53,849			238,339			—			292,188
CASH AND CASH EQUIVALENTS, END OF YEAR	$	138,488		$	125,663		$	492,844		$	—		$	756,995

For the Year Ended December 31, 2009	Allied  World Switzerland (Parent Guarantor)		Allied World Bermuda (Subsidiary Issuer)			Other Allied World Subsidiaries			Consolidating Adjustments			Allied World Switzerland Consolidated
CASH FLOWS PROVIDED BY OPERATING ACTIVITIES:
Net income	$	—	$	606,887		$	652,086		$	(652,086	)	$	606,887
Adjustments to reconcile net income to cash provided by operating activities:
Equity in earnings of consolidated subsidiaries		—		(652,086	)		—			652,086			—
Dividends received from subsidiaries		—		75,000			—			(75,000	)		—
Stock compensation expenses		—		468			39,931			—			40,399
Amortization of discount on senior notes		—		495			—			—			495
Other assets		—		(3,058	)		(171,708	)		—			(174,766	)
Accounts payable and accrued liabilities		—		166			196,469			—			196,635
Interest payable		—		(687	)		—			—			(687	)
Net cash provided by operating activities		—		27,185			716,778			(75,000	)		668,963
CASH FLOWS USED IN INVESTING ACTIVITIES:
Purchase of fixed maturity investments — available for sale		—		—			(6,504,094	)		—			(6,504,094	)
Purchase of fixed maturity investments — trading		—		—			(4,338,454	)		—			(4,338,454	)
Purchases of other invested assets		—		—			(166,848	)		—			(166,848	)
Sales of fixed maturity investments — available for sale		—		—			8,346,180			—			8,346,180
Sales of fixed maturity investments — trading		—		—			1,818,736			—			1,818,736
Sale of other invested assets		—		—			133,057			—			133,057
Other		—		—			128,827			—			128,827
Net cash used in investing activities		—		—			(582,596	)		—			(582,596	)
CASH FLOWS USED IN FINANCING ACTIVITIES:
Dividends paid		—		(36,689	)		(75,000	)		75,000			(36,689	)
Proceeds from the exercise of stock options		—		7,442			—			—			7,442
Proceeds from senior notes		—		(243,750	)		—			—			(243,750	)
Stock compensation funding due from subsidiaries		—		2,677			(2,677	)		—			—
Other		—		—			(177,010	)		—			(177,010	)
Net cash used in financing activities		—		(270,320	)		(254,687	)		75,000			(450,007	)
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS		—		(243,135	)		(120,505	)		—			(363,640	)
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR		—		296,984			358,844			—			655,828
CASH AND CASH EQUIVALENTS, END OF YEAR	$	—	$	53,849		$	238,339		$	—		$	292,188