EX-99.1 2 d571311dex991.htm PRESS RELEASE, DATED JULY 25, 2013, REPORTING SECOND QUARTER RESULTS FOR 2013 Press Release, dated July 25, 2013, reporting second quarter results for 2013

Exhibit 99.1

ALLIED WORLD REPORTS 36% GROWTH IN UNDERWRITING INCOME

FOR THE SECOND QUARTER 2013

Diluted book value per share of $96.18, an increase of 3.9% from year end 2012

ZUG, Switzerland, July 25, 2013 — (BUSINESS WIRE) — Allied World Assurance Company Holdings, AG (NYSE: AWH) today reported a net loss of $1.9 million, or $0.05 per diluted share, for the second quarter of 2013 compared to net income of $96.4 million, or $2.59 per diluted share, for the second quarter of 2012. The quarterly net loss was due to $115 million of net realized investment losses driven by mark to market adjustments on the portfolio. Net income for the six months ended June 30, 2013 was $157.1 million, or $4.45 per diluted share, compared to net income of $314.5 million, or $8.41 per diluted share, for the first six months of 2012.

The company reported operating income of $103.5 million, or $2.95 per diluted share, for the second quarter of 2013, compared to operating income of $87.3 million, or $2.35 per diluted share, for the second quarter of 2012. Operating income for the six months ended June 30, 2013 was $187.7 million, or $5.31 per diluted share, compared to operating income of $178.8 million, or $4.78 per diluted share, for the first six months of 2012.

President and Chief Executive Officer Scott Carmilani commented, “Allied World produced excellent underwriting results. We benefitted from growth across all three segments, in part from newer product initiatives, and delivered a combined ratio of 82.8% for the second quarter of 2013.”

“Despite the challenging investment environment, we continue to be well positioned to grow book value, and have done so at a rate of almost 4% during the first half of 2013.”

Underwriting Results

Gross premiums written were $765.2 million in the second quarter of 2013, an 18.3% increase compared to $646.9 million in the second quarter of 2012. For the six months ended June 30, 2013, gross premiums written totaled $1,602.3 million, a 20.7% increase compared to $1,327.8 million in the first six months of 2012. Net premiums written were $581.2 million in the second quarter of 2013, a 17.5% increase compared to $494.7 million in the second quarter of 2012. For the six months ended June 30, 2013, net premiums written totaled $1,276.3 million, a 17.8% increase compared to $1,083.7 million in the first six months of 2012.

Net premiums earned in the second quarter of 2013 were $507.3 million, an 18.0% increase compared to $429.7 million in the second quarter of 2012. For the six months ended June 30, 2013, net premiums earned totaled $970.5 million, a 16.7% increase compared to $831.6 million in the first six months of 2012.

The combined ratio was 82.8% in the second quarter of 2013 compared to 85.1% in the second quarter of 2012. The loss and loss expense ratio was 54.2% in the second quarter of 2013 compared to 55.9% in the second quarter of 2012. During the second quarter of 2013, the company recorded net favorable reserve development on

 

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prior loss years of $48.4 million. This favorable reserve development resulted in a benefit of 9.5 percentage points to the company’s loss and loss expense ratio for the quarter. This compares to the second quarter of 2012, when the company recorded net favorable reserve development on prior loss years of $41.9 million, a benefit of 9.8 percentage points to the company’s loss and loss expense ratio for that quarter. Absent these adjustments, the loss and loss expense ratio for the second quarter of 2013 was 63.7% compared to 65.7% for the second quarter of 2012. The company experienced no significant catastrophe losses for the current accident year or quarter ended June 30, 2013.

For the six months ended June 30, 2013, the combined ratio was 83.9% compared to 85.2% for the first six months of 2012. The loss and loss expense ratio was 54.6% in the first half of 2013 compared to 56.0% in the first half of 2012. For the six months ended June 30, 2013, the company recorded net favorable reserve development on prior loss years of $92.5 million, a benefit of 9.5 percentage points to the company’s loss and loss expense ratio. For the six months ended June 30, 2012, the company recorded net favorable reserve development on prior loss years of $81.4 million, a benefit of 9.8 percentage points to the company’s loss and loss expense ratio. Absent prior year reserve adjustments, the loss and loss expense ratio for the six months ended June 30, 2013 was 64.1% compared to 65.8% for 2012.

The company’s expense ratio was 28.6% for the second quarter of 2013 compared to 29.2% for the second quarter of 2012. The expense ratio was 29.3% the first six months of June 30, 2013 compared to 29.2% for the first six months of 2012.

Investment Results

The total return on the company’s investment portfolio for the three months ended June 30, 2013 was a loss of 90 basis points compared to a gain of 60 basis points for the three months ended June 30, 2012. This was largely driven by losses in the U.S. bond market, which, as measured by the Barclays Aggregate Bond Index, posted its third largest loss since 1981. For the six months ended June 30, 2013, the total return on the company’s investment portfolio was 40 basis points compared to 260 basis points for the six months ended June 30, 2012. See the table below for the components of our investment returns:

 

(Expressed in millions of U.S. Dollars)    Quarter Ended     Six Months Ended  
     June 30, 2013     June 30, 2012     June 30, 2013     June 30, 2012  

Net investment income

   $ 37.6      $ 42.5      $ 71.0      $ 89.7   

Net realized investment (losses) gains

     (115.2     8.6        (35.5     142.2   

Change in unrealized gains

     —          (1.4     —          (15.4
  

 

 

   

 

 

   

 

 

   

 

 

 

Net investment income, realized gains and unrealized gains

   $ (77.6   $ 49.7      $ 35.5      $ 216.5   
  

 

 

   

 

 

   

 

 

   

 

 

 

Average invested assets

   $ 8,459.5      $ 8,276.1      $ 8,446.1      $ 8,203.8   

Financial statement portfolio return

     (0.9 %)      0.6     0.4     2.6

Note: investment income, net realized gains / losses and change in unrealized gains / losses are disclosed on a pre-tax basis.

 

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Shareholders’ Equity

As of June 30, 2013, the company’s total shareholders’ equity was $3,373.2 million, compared to $3,326.3 million as of December 31, 2012.

As of June 30, 2013, diluted book value per share was $96.18, an increase of 3.9% compared to $92.59 as of December 31, 2012.

Capital Management

During the second quarter of 2013, the company repurchased 508,328 of its common shares through its share repurchase program in the open market at an average price of $91.13 per share and at an aggregate cost of $46.3 million. This compares to the open market repurchase of 432,117 common shares at an average price of $83.88 per share and at an aggregate cost of $36.2 million during the first quarter of 2013.

In May 2013 the company’s shareholders approved a quarterly dividend equal to $0.50 per share. The first installment of that dividend was paid on July 3, 2013 to shareholders of record on June 25, 2013. The three remaining installments are anticipated to be paid in October 2013, January 2014 and April 2014.

Supplementary Information

Allied World will be providing a Financial Supplement relating to second quarter 2013 and an Investment Supplement as of June 30, 2013. This information will be available in the “Investor Relations” section of the company’s website at www.awac.com.

Conference Call

Allied World will host a conference call on Friday, July 26, 2013 at 9:00 a.m. (Eastern Time) to discuss the results for the second quarter ended June 30, 2013. The public may access a live webcast of the conference call at the “Investor Relations” section of the company’s website at www.awac.com. In addition, the conference call can be accessed by dialing (888) 317-6003 (U.S. and Canada callers) or (412) 317-6061 (international callers) and entering the passcode 5166966 approximately ten minutes prior to the call.

Following the conclusion of the presentation, a replay of the call will be available through Friday, August 9, 2013 by dialing (877) 344-7529 (U.S. and Canada callers) or (412) 317-0088 (international callers) and entering

 

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the passcode 10030260. In addition, the webcast will remain available online through Friday, August 9, 2013 at www.awac.com.

Non-GAAP Financial Measures

In presenting the company’s results, management has included and discussed in this press release certain non-generally accepted accounting principles (“non-GAAP”) financial measures within the meaning of Regulation G as promulgated by the U.S. Securities and Exchange Commission. Management believes that these non-GAAP measures, which may be defined differently by other companies, better explain the company’s results of operations in a manner that allows for a more complete understanding of the underlying trends in the company’s business. However, these measures should not be viewed as a substitute for those determined in accordance with generally accepted accounting principles (“U.S. GAAP”).

“Operating income” is an internal performance measure used in the management of the company’s operations and represents after-tax operational results excluding, as applicable, net realized investment gains or losses, net impairment charges recognized in earnings, net foreign exchange gain or loss, and other non-recurring items. The company excludes net realized investment gains or losses, net impairment charges recognized in earnings, net foreign exchange gain or loss, and other non-recurring items from the calculation of operating income because these amounts are heavily influenced by and fluctuate in part according to the availability of market opportunities and other factors. In addition to presenting net income determined in accordance with U.S. GAAP, the company believes that showing operating income enables investors, analysts, rating agencies and other users of the company’s financial information to more easily analyze our results of operations and underlying business performance. Operating income should not be viewed as a substitute for U.S. GAAP net income.

The company has included “diluted book value per share” because it takes into account the effect of dilutive securities; therefore, the company believes it is an important measure of calculating shareholder returns.

“Annualized net income return on average shareholders’ equity” (“ROAE”) is calculated using average shareholders’ equity, excluding the average after tax unrealized gains (or losses) on investments. Unrealized gains (losses) on investments are primarily the result of interest rate and credit spread movements and the resultant impact on fixed income securities. Such gains (losses) are not related to management actions or operational performance, nor are they likely to be realized. Therefore, the company believes that excluding these unrealized gains (losses) provides a more consistent and useful measurement of operating performance, which supplements U.S. GAAP information. In calculating ROAE, the net income (loss) available to shareholders for the period is multiplied by the number of such periods in a calendar year in order to arrive at annualized net income (loss) available to shareholders. The company presents ROAE as a measure that is commonly recognized as a standard of performance by investors, analysts, rating agencies and other users of its financial information.

 

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“Annualized operating return on average shareholders’ equity” is calculated using operating income (as defined above and annualized in the manner described for net income (loss) available to shareholders under ROAE above) and average shareholders’ equity, excluding the average after tax unrealized gains (losses) on investments. Unrealized gains (losses) are excluded from equity for the reasons outlined in the annualized net income return on average shareholders’ equity explanation above.

Reconciliations of these financial measures to their most directly comparable U.S. GAAP measures are included in the attached tables.

About Allied World Assurance Company

Allied World Assurance Company Holdings, AG, through its subsidiaries and brand known as Allied World, is a global provider of innovative property, casualty and specialty insurance and reinsurance solutions. Allied World offers superior client service through a global network of offices and branches. All of Allied World’s rated insurance and reinsurance subsidiaries are rated A by A.M. Best Company, A by Standard & Poor’s, and A2 by Moody’s, and our Lloyd’s Syndicate 2232 is rated A+ by Standard & Poor’s and Fitch.

Please visit the following for further information on Allied World: Web: www.awac.com | Facebook: www.facebook.com/alliedworld | LinkedIn: http://www.linkedin.com/company/Allied-World.

Cautionary Statement Regarding Forward-Looking Statements

Any forward-looking statements made in this press release reflect our current views with respect to future events and financial performance and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements involve risks and uncertainties, which may cause actual results to differ materially from those set forth in these statements. For example, our forward-looking statements could be affected by pricing and policy term trends; increased competition; the 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.

 

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ALLIED WORLD ASSURANCE COMPANY HOLDINGS, AG

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Expressed in thousands of United States dollars, except share and per share amounts)

 

     Quarter Ended June 30,     Six Months Ended June 30,  
     2013     2012     2013     2012  

Revenues:

        

Gross premiums written

   $ 765,200      $ 646,870      $ 1,602,281      $ 1,327,799   

Premiums ceded

     (183,978     (152,160     (326,007     (244,136
  

 

 

   

 

 

   

 

 

   

 

 

 

Net premiums written

     581,222        494,710        1,276,274        1,083,663   

Change in unearned premiums

     (73,951     (64,963     (305,775     (252,026
  

 

 

   

 

 

   

 

 

   

 

 

 

Net premiums earned

     507,271        429,747        970,499        831,637   

Net investment income

     37,635        42,451        71,023        89,660   

Net realized investment (losses) gains

     (115,198     8,663        (35,561     142,244   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total revenues

     429,708        480,861        1,005,961        1,063,541   
  

 

 

   

 

 

   

 

 

   

 

 

 

Expenses:

        

Net losses and loss expenses

     275,128        240,380        530,306        465,582   

Acquisition costs

     64,617        51,588        121,302        98,726   

General and administrative expenses

     80,585        73,979        163,265        144,345   

Amortization of intangible assets

     634        634        1,267        1,267   

Interest expense

     14,188        14,001        28,322        27,757   

Foreign exchange loss (gain)

     490        (1,019     3,008        (1,100
  

 

 

   

 

 

   

 

 

   

 

 

 

Total expenses

     435,642        379,563        847,470        736,577   
  

 

 

   

 

 

   

 

 

   

 

 

 

Loss (income) before income taxes

     (5,934     101,298        158,491        326,964   

Income tax (benefit) expense

     (4,072     4,947        1,361        12,457   
  

 

 

   

 

 

   

 

 

   

 

 

 

NET (LOSS) INCOME

   $ (1,862   $ 96,351      $ 157,130      $ 314,507   
  

 

 

   

 

 

   

 

 

   

 

 

 

PER SHARE DATA:

        

Basic (loss) earnings per share

   $ (0.05   $ 2.66      $ 4.55      $ 8.56   

Diluted (loss) earnings per share

   $ (0.05   $ 2.59      $ 4.45      $ 8.41   

Weighted average common shares outstanding

     34,422,553        36,288,596        34,517,552        36,746,881   

Weighted average common shares and common share equivalents outstanding

     34,422,553        37,189,722        35,316,595        37,395,559   

Dividends paid per share

   $ —     $ 0.375      $ 0.375      $ 0.750   

 

* Dividend of $0.50 per share was paid on July 3, 2013 to shareholders of record on June 25, 2013.

 

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ALLIED WORLD ASSURANCE COMPANY HOLDINGS, AG

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(Expressed in thousands of United States dollars, except share and per share amounts)

 

     As of     As of  
     June 30,     December 31,  
     2013     2012  

ASSETS:

    

Fixed maturity investments trading, at fair value

   $ 6,285,778      $ 6,626,454   

Equity securities trading, at fair value

     640,925        523,949   

Other invested assets

     849,100        783,534   
  

 

 

   

 

 

 

Total investments

     7,775,803        7,933,937   

Cash and cash equivalents

     868,149        865,364   

Insurance balances receivable

     814,620        510,532   

Funds held

     387,599        336,368   

Prepaid reinsurance

     339,936        277,406   

Reinsurance recoverable

     1,179,525        1,141,110   

Accrued investment income

     24,112        29,135   

Net deferred acquisition costs

     153,812        108,010   

Goodwill

     268,376        268,376   

Intangible assets

     50,098        51,365   

Balances receivable on sale of investments

     277,025        418,879   

Net deferred tax assets

     40,550        25,580   

Other assets

     85,272        63,884   
  

 

 

   

 

 

 

Total assets

   $ 12,264,877      $ 12,029,946   
  

 

 

   

 

 

 

LIABILITIES:

    

Reserve for losses and loss expenses

   $ 5,696,865      $ 5,645,549   

Unearned premiums

     1,586,327        1,218,021   

Reinsurance balances payable

     205,884        136,264   

Balances due on purchases of investments

     487,063        759,934   

Senior notes

     798,355        798,215   

Dividends payable

     17,127        —     

Accounts payable and accrued liabilities

     100,027        145,628   
  

 

 

   

 

 

 

Total liabilities

     8,891,648        8,703,611   
  

 

 

   

 

 

 

SHAREHOLDERS’ EQUITY:

    

Common shares, 2013: par value CHF 12.30 per share and 2012: par value CHF 12.64 per share (2013: 35,429,423; 2012: 36,369,868 shares issued and 2013: 34,175,831; 2012: 34,797,781 shares outstanding)

     430,397        454,980   

Treasury shares, at cost (2013: 1,253,592; 2012: 1,572,087)

     (91,661     (113,818

Retained earnings

     3,034,493        2,985,173   
  

 

 

   

 

 

 

Total shareholders’ equity

     3,373,229        3,326,335   
  

 

 

   

 

 

 

Total liabilities and shareholders’ equity

   $ 12,264,877      $ 12,029,946   
  

 

 

   

 

 

 

 

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ALLIED WORLD ASSURANCE COMPANY HOLDINGS, AG

UNAUDITED CONSOLIDATED SEGMENT DATA

(Expressed in thousands of United States dollars, except for ratio information)

 

    U.S.     International              

Quarter Ended June 30, 2013

  Insurance     Insurance     Reinsurance     Total  

Gross premiums written

  $ 307,297      $ 192,593      $ 265,310      $ 765,200   

Net premiums written

    221,419        106,394        253,409        581,222   

Net premiums earned

    197,436        87,041        222,794        507,271   

Net losses and loss expenses

    (124,364     (30,968     (119,796     (275,128

Acquisition costs

    (27,270     358        (37,705     (64,617

General and administrative expenses

    (38,302     (24,135     (18,148     (80,585
 

 

 

   

 

 

   

 

 

   

 

 

 

Underwriting income

    7,500        32,296        47,145        86,941   

Net investment income

          37,635   

Net realized investment losses

          (115,198

Amortization of intangible assets

          (634

Interest expense

          (14,188

Foreign exchange loss

          (490
       

 

 

 

Loss before income taxes

        $ (5,934
       

 

 

 

GAAP Ratios:

       

Loss and loss expense ratio

    63.0     35.6     53.8     54.2

Acquisition cost ratio

    13.8     (0.4 %)      16.9     12.7

General and administrative expense ratio

    19.4     27.7     8.1     15.9
 

 

 

   

 

 

   

 

 

   

 

 

 

Combined ratio

    96.2     62.9     78.8     82.8
 

 

 

   

 

 

   

 

 

   

 

 

 
    U.S.     International              

Quarter Ended June 30, 2012

  Insurance     Insurance     Reinsurance     Total  

Gross premiums written

  $ 265,974      $ 183,593      $ 197,303      $ 646,870   

Net premiums written

    196,661        111,342        186,707        494,710   

Net premiums earned

    162,785        82,605        184,357        429,747   

Net losses and loss expenses

    (103,074     (22,233     (115,073     (240,380

Acquisition costs

    (21,250     582        (30,920     (51,588

General and administrative expenses

    (34,730     (21,648     (17,601     (73,979
 

 

 

   

 

 

   

 

 

   

 

 

 

Underwriting income

    3,731        39,306        20,763        63,800   

Net investment income

          42,451   

Net realized investment gains

          8,663   

Amortization of intangible assets

          (634

Interest expense

          (14,001

Foreign exchange gain

          1,019   
       

 

 

 

Income before income taxes

        $ 101,298   
       

 

 

 

GAAP Ratios:

       

Loss and loss expense ratio

    63.3     26.9     62.4     55.9

Acquisition cost ratio

    13.1     (0.7 %)      16.8     12.0

General and administrative expense ratio

    21.3     26.2     9.5     17.2
 

 

 

   

 

 

   

 

 

   

 

 

 

Combined ratio

    97.7     52.4     88.7     85.1
 

 

 

   

 

 

   

 

 

   

 

 

 

 

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ALLIED WORLD ASSURANCE COMPANY HOLDINGS, AG

UNAUDITED CONSOLIDATED SEGMENT DATA

(Expressed in thousands of United States dollars, except for ratio information)

 

    U.S.     International              

Six Months Ended June 30, 2013

  Insurance     Insurance     Reinsurance     Total  

Gross premiums written

  $ 563,315      $ 321,109      $ 717,857      $ 1,602,281   

Net premiums written

    413,672        184,139        678,463        1,276,274   

Net premiums earned

    385,875        171,255        413,369        970,499   

Net losses and loss expenses

    (257,688     (59,903     (212,715     (530,306

Acquisition costs

    (50,398     1,207        (72,111     (121,302

General and administrative expenses

    (77,898     (48,924     (36,443     (163,265
 

 

 

   

 

 

   

 

 

   

 

 

 

Underwriting (loss) income

    (109     63,635        92,100        155,626   

Net investment income

          71,023   

Net realized investment losses

          (35,561

Amortization of intangible assets

          (1,267

Interest expense

          (28,322

Foreign exchange loss

          (3,008
       

 

 

 

Income before income taxes

        $ 158,491   
       

 

 

 

GAAP Ratios:

       

Loss and loss expense ratio

    66.8     35.0     51.5     54.6

Acquisition cost ratio

    13.1     (0.7 %)      17.4     12.5

General and administrative expense ratio

    20.2     28.6     8.8     16.8
 

 

 

   

 

 

   

 

 

   

 

 

 

Combined ratio

    100.1     62.9     77.7     83.9
 

 

 

   

 

 

   

 

 

   

 

 

 
    U.S.     International              

Six Months Ended June 30, 2012

  Insurance     Insurance     Reinsurance     Total  

Gross premiums written

  $ 470,185      $ 297,183      $ 560,431      $ 1,327,799   

Net premiums written

    350,507        183,951        549,205        1,083,663   

Net premiums earned

    316,143        162,476        353,018        831,637   

Net losses and loss expenses

    (200,778     (60,333     (204,471     (465,582

Acquisition costs

    (41,222     1,110        (58,614     (98,726

General and administrative expenses

    (65,774     (44,049     (34,522     (144,345
 

 

 

   

 

 

   

 

 

   

 

 

 

Underwriting income

    8,369        59,204        55,411        122,984   

Net investment income

          89,660   

Net realized investment gains

          142,244   

Amortization of intangible assets

          (1,267

Interest expense

          (27,757

Foreign exchange gain

          1,100   
       

 

 

 

Income before income taxes

        $ 326,964   
       

 

 

 

GAAP Ratios:

       

Loss and loss expense ratio

    63.5     37.1     57.9     56.0

Acquisition cost ratio

    13.0     (0.7 %)      16.6     11.9

General and administrative expense ratio

    20.8     27.1     9.8     17.3
 

 

 

   

 

 

   

 

 

   

 

 

 

Combined ratio

    97.3     63.5     84.3     85.2
 

 

 

   

 

 

   

 

 

   

 

 

 

 

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ALLIED WORLD ASSURANCE COMPANY HOLDINGS, AG

UNAUDITED OPERATING INCOME RECONCILIATION

(Expressed in thousands of United States dollars, except share and per share amounts)

 

    Quarter Ended June 30,     Six Months Ended June 30,  
    2013     2012     2013     2012  

Net (loss) income

  $ (1,862   $ 96,351      $ 157,130      $ 314,507   

Add after tax effect of:

       

Net realized investment losses (gains)

    104,897        (8,014     27,555        (134,584

Foreign exchange loss (gain)

    490        (1,019     3,008        (1,100
 

 

 

   

 

 

   

 

 

   

 

 

 

Operating income

  $ 103,525      $ 87,318      $ 187,693      $ 178,823   
 

 

 

   

 

 

   

 

 

   

 

 

 

Weighted average common shares outstanding:

       

Basic

    34,422,553        36,288,596        34,517,552        36,746,881   

Diluted

    35,136,296     37,189,722        35,316,595        37,395,559   

Basic per share data:

       

Net (loss) income

  $ (0.05   $ 2.66      $ 4.55      $ 8.56   

Add after tax effect of:

       

Net realized investment losses (gains)

    3.05        (0.22     0.80        (3.66

Foreign exchange loss (gain)

    0.01        (0.03     0.09        (0.03
 

 

 

   

 

 

   

 

 

   

 

 

 

Operating income

  $ 3.01      $ 2.41      $ 5.44      $ 4.87   
 

 

 

   

 

 

   

 

 

   

 

 

 

Diluted per share data:

       

Net (loss) income

  $ (0.05 )*    $ 2.59      $ 4.45      $ 8.41   

Add after tax effect of:

       

Net realized investment losses (gains)

    2.99        (0.22     0.78        (3.60

Foreign exchange loss (gain)

    0.01        (0.02     0.08        (0.03
 

 

 

   

 

 

   

 

 

   

 

 

 

Operating income

  $ 2.95      $ 2.35      $ 5.31      $ 4.78   
 

 

 

   

 

 

   

 

 

   

 

 

 

 

* Diluted weighted average common shares outstanding were only used in the calculation of diluted operating income per share. There were no common share equivalents included in calculating diluted earnings per share as there was a net loss and any additional shares would be anti-dilutive.

 

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ALLIED WORLD ASSURANCE COMPANY HOLDINGS, AG

UNAUDITED DILUTED BOOK VALUE PER SHARE RECONCILIATION

(Expressed in thousands of United States dollars, except share and per share amounts)

 

     As of     As of     As of  
     June 30,     December 31,     June 30,  
     2013     2012     2012  

Price per share at period end

   $ 91.51      $ 78.80      $ 79.47   

Total shareholders’ equity

   $ 3,373,229      $ 3,326,335      $ 3,283,901   

Basic common shares outstanding

     34,175,831        34,797,781        35,942,964   

Add: unvested restricted share units

     83,730        135,123        185,809   

Add: performance based equity awards

     270,853        485,973        510,530   

Add: employee share purchase plan

     10,622        10,750        —     

Add: dilutive options/warrants outstanding

     1,111,266        1,224,607        1,365,245   

Weighted average exercise price per share

   $ 47.65      $ 47.02      $ 46.04   

Deduct: options bought back via treasury method

     (578,610     (730,652     (790,888
  

 

 

   

 

 

   

 

 

 

Common shares and common share equivalents outstanding

     35,073,692        35,923,582        37,213,660   

Basic book value per common share

   $ 98.70      $ 95.59      $ 91.36   

Diluted book value per common share

   $ 96.18      $ 92.59      $ 88.24   

 

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ALLIED WORLD ASSURANCE COMPANY HOLDINGS, AG

UNAUDITED ANNUALIZED RETURN ON SHAREHOLDERS’ EQUITY RECONCILIATION

(Expressed in thousands of United States dollars, except for percentage information)

 

    Quarter Ended June 30,     Six Months Ended June 30,  
    2013     2012     2013     2012  

Opening shareholders’ equity

  $ 3,431,963      $ 3,245,821      $ 3,326,335      $ 3,149,022   

Deduct: accumulated other comprehensive income

    —          (2,325     —          (14,484
 

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted opening shareholders’ equity

    3,431,963        3,243,496        3,326,335        3,134,538   

Closing shareholders’ equity

  $ 3,373,229      $ 3,283,901      $ 3,373,229      $ 3,283,901   

Deduct: accumulated other comprehensive income

    —          (1,414     —          (1,414
 

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted closing shareholders’ equity

    3,373,229        3,282,487        3,373,229        3,282,487   

Average shareholders’ equity

  $ 3,402,596      $ 3,262,992      $ 3,349,782      $ 3,208,513   
 

 

 

   

 

 

   

 

 

   

 

 

 

Net (loss) income available to shareholders

  $ (1,862   $ 96,351      $ 157,130      $ 314,507   

Annualized net (loss) income available to shareholders

    (7,448     385,404        314,260        629,014   

Annualized return on average shareholders’ equity - net (loss) income available to shareholders

    (0.2 %)      11.8     9.4     19.6
 

 

 

   

 

 

   

 

 

   

 

 

 

Operating income available to shareholders

  $ 103,525      $ 87,318      $ 187,693      $ 178,823   

Annualized operating income available to shareholders

    414,100        349,272        375,386        357,646   

Annualized return on average shareholders’ equity - operating income available to shareholders

    12.2     10.7     11.2     11.1
 

 

 

   

 

 

   

 

 

   

 

 

 

 

12


Media:

Noelle Campbell

Manager, Corporate Communications

+1-646-794-0544

Noelle.campbell@awacservices.com

OR

Faye Cook

SVP, Marketing & Communications

+1-441-278-5406

faye.cook@awac.com

Investors:

Sarah Doran

SVP, Investor Relations and Treasurer

+1-646-794-0590

sarah.doran@awac.com

Website: www.awac.com

 

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