Shareholders' Equity

6 Months Ended

Jun. 30, 2013

Shareholders' Equity [Abstract]

Shareholders' Equity

9. SHAREHOLDERS' EQUITY

a) Authorized shares

The issued share capital consists of the following:

	June 30,		December 31,
	2013		2012
Common shares issued and fully paid, 2013: CHF 12.30 per share; 2012: CHF 12.64 per share		35,429,423		36,369,868
Share capital at end of period	$	430,397	$	454,980

	Six Months
	Ended
	June 30,
	2013
Shares issued at beginning of period	36,369,868
Shares cancelled	(940,445)
Total shares issued at end of period	35,429,423
Treasury shares issued at beginning of period	1,572,087
Shares repurchased	940,445
Shares issued out of treasury	(318,495)
Shares cancelled	(940,445)
Total treasury shares at end of period	1,253,592
Total shares outstanding at end of period	34,175,831

During the six months ended June 30, 2013,940,445 voting shares repurchased and designated for cancellation were constructively retired and cancelled.

Allied World Switzerland's articles of association authorized its Board of Directors to increase the share capital by a maximum of up to CHF 92,259 or 7,500,728 voting shares.

b) Dividends

The Company paid the following dividend during the sixmonths ended June 30, 2013:

	Partial
	Par Value		Dividend		Total
	Reduction		Per		Amount
Dividend Paid	Per Share		Share		Paid
March 12, 2013	CHF	0.34	$	0.375	$	12,981

On May 3, 2012, the shareholders approved the Company's proposal to pay cash dividends in the form of a distribution by way of par value reductions. The aggregate reduction amount was paid to shareholders in four installments of $0.375 per share, with the last of such quarterly dividend payments being made on March 12, 2013.

On May 2, 2013, theshareholders approved the Company's proposal to pay cash dividends in the form of a distribution out of general legal reserve from capital contributions. The distribution amount will be paid to shareholders in quarterly installments of $0.50 per share. The first installment of the dividend was paid on July 3, 2013. The Company expects to distribute the remaining installments of the dividend in October 2013, January 2014 and April 2014.

c) Share Repurchases

In May 2012, the Company established a new share repurchase program in order to repurchase up to $500,000 of its common shares. Repurchases may be effected from time to time through open market purchases, privately negotiated transactions, tender offers or otherwise. The timing, form and amount of the share repurchases under the program will depend on a variety of factors, including market conditions, the Company's capital position, legal requirements and other factors. Under the terms of this new share repurchase program, common shares repurchased shall be designated for cancellation at acquisition and shall be cancelled upon shareholder approval.

Shares repurchased by the Company and not designated for cancellation are classified as “Treasury shares, at cost” on the consolidated balance sheets. The Company will issue shares out of treasury principally related to the Company's employee benefit plans. Shares repurchased and designated for cancellation are constructively retired and recorded as a share cancellation.

The Company's share repurchases were as follows:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2013		2012		2013		2012
Common shares repurchased		508,328		905,383		940,445		2,336,187
Total cost of shares repurchased	$	46,326	$	66,435	$	82,571	$	159,458
Average price per share	$	91.13	$	73.38	$	87.80	$	68.26