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8-K - 8-K - Allied World Assurance Co Holdings, AGawh-20150109x8k.htm
Exhibit 99.1


ALLIED WORLD ASSURANCE COMPANY HOLDINGS, AG
New Segment Financial Supplement


Investor Contact:        This report is for informational purposes only. It should be read in conjunction with documents filed by
Sarah Doran            Allied World Assurance Company Holdings, AG with the U.S. Securities and Exchange Commission.
Phone: (646)794-0590
Email: sarah.doran@awac.com




CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS

Any forward-looking statements made in this report 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 the occurrence of any event, change or other circumstance that could give rise to the termination of the definitive agreements with Royal & Sun Alliance Insurance plc; the inability to receive the required regulatory approvals to complete the acquisitions; risks that the proposed acquisitions disrupt each company’s current plans and operations; the ability to retain key personnel; the ability to recognize the benefits of the acquisitions; the amount of costs, fees, expenses and charges related to the acquisitions; pricing and policy term trends; increased competition; the adequacy of our loss reserves; negative rating agency actions; greater frequency or severity of unpredictable catastrophic events; the impact of acts of terrorism and acts of war; 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.




ALLIED WORLD ASSURANCE COMPANY HOLDINGS, AG
FINANCIAL SUPPLEMENT TABLE OF CONTENTS
 
 
 
 
 
 
 
Page
 
 
 
 
 
Basis of Presentation
 
4

 
 
 
 
 
- Consolidated Segment Results - year ended December 31, 2013
 
5

 
- Consolidated Segment Results - year ended December 31, 2012
 
6

 
- Consolidated Segment Results - nine months ended September 30, 2014
 
7

 
- Consolidated Segment Results - nine months ended September 30, 2013
 
8

 
- Consolidated Segment Results - three months ended September 30, 2014
 
9

 
- Consolidated Segment Results - three months ended June 30, 2014
 
10

 
- Consolidated Segment Results - three months ended March 31, 2014
 
11

 
- Consolidated Segment Results - three months ended December 31, 2013
 
12

 
- Consolidated Segment Results - three months ended September 30, 2013
 
13

 
- Consolidated Segment Results - three months ended June 30, 2013
 
14

 
- Consolidated Segment Results - three months ended March 31, 2013
 
15

 
 
 
 



ALLIED WORLD ASSURANCE COMPANY HOLDINGS, AG
BASIS OF PRESENTATION


DEFINITIONS AND PRESENTATION

The following schedules show the Company's unaudited results of operations for each of its operating segments for the year ended December 31, 2013, year ended December 31, 2012, nine months ended September 30, 2014, nine months ended September 30, 2013, quarter ended September 30, 2014, quarter ended June 30, 2014, quarter ended March 31, 2014, quarter ended December 31, 2013, quarter ended September 30, 2013, quarter ended June 30, 2013, and quarter ended March 31, 2013.

During the fourth quarter of 2014, the Chief Executive Officer of Allied World Assurance Company Holdings, AG (the "Company") reorganized how the Company manages its business, and as a result it realigned its executive management team and changed its reportable segments to correspond to the reorganization. The Company's Bermuda direct insurance operations, which had previously been included in the international insurance segment, were combined with the U.S. insurance segment, with the new segment renamed the "North American Insurance Segment". The remaining direct insurance operations of the international insurance segment were renamed the "Global Markets Insurance Segment". The Reinsurance Segment remained unchanged. The results of operations reported under the "Reinsurance" and "Consolidated Totals" columns in the following schedules have not changed as a result of the new segment format.

All financial information contained herein is unaudited.

Unless otherwise noted, all data is in thousands of U.S. dollars.


4

ALLIED WORLD ASSURANCE COMPANY HOLDINGS, AG
UNAUDITED CONSOLIDATED SEGMENT RESULTS
FOR THE YEAR ENDED DECEMBER 31, 2013


 
 
 
Year ended December 31, 2013
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
North American
 
Global Markets
 
 
 
Consolidated
 
 
 
Insurance
 
Insurance
 
Reinsurance
 
Totals
Revenues
 
 
 
 
 
 
 
 
 
 
 
 
Gross premiums written
$
1,572,355

 
$
232,555

 
$
933,754

 
$
2,738,664

 
Net premiums written
$
1,082,441

 
$
145,002

 
$
893,038

 
$
2,120,481

 
Net premiums earned
$
1,022,979

 
$
126,008

 
$
856,846

 
$
2,005,833

 
 
Total revenues
$
1,022,979

 
$
126,008

 
$
856,846

 
$
2,005,833

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Expenses
 
 
 
 
 
 
 
 
 
 
 
 
Net losses and loss expenses
$
651,267

 
$
50,395

 
$
421,580

 
$
1,123,242

 
Acquisition costs
 
94,869

 
 
10,051

 
 
147,753

 
 
252,673

 
General and administrative expenses
 
209,042

 
 
63,164

 
 
80,079

 
 
352,285

 
 
Total expenses
$
955,178

 
$
123,610

 
$
649,412

 
$
1,728,200

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Underwriting income
$
67,801

 
$
2,398

 
$
207,434

 
$
277,633

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other insurance-related income
 

 
 

 
 

 
 

 
Other insurance-related expenses
 

 
 

 
 

 
 

Segment income
$
67,801

 
$
2,398

 
$
207,434

 
$
277,633

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net investment income
 
 
 
 
 
 
 
 
 
 
157,564

 
Net realized investment gains
 
 
 
 
 
 
 
 
 
 
59,525

 
Amortization of intangible assets
 
 
 
 
 
 
 
 
 
 
(2,533)

 
Interest expense
 
 
 
 
 
 
 
 
 
 
(56,510)

 
Foreign exchange loss
 
 
 
 
 
 
 
 
 
 
(8,019)

Income before income taxes
 
 
 
 
 
 
 
 
 
$
427,660

 
 
 
 
 
 
 
 
 
 
 
 
 
 
GAAP Ratios
 
 
 
 
 
 
 
 
 
 
 
Loss and loss expense ratio
 
63.7
%
 
 
40.0
%
 
 
49.2
%
 
 
56.0
%
Acquisition cost ratio
 
9.3
%
 
 
8.0
%
 
 
17.2
%
 
 
12.6
%
General and administrative expense ratio
 
20.4
%
 
 
50.1
%
 
 
9.3
%
 
 
17.6
%
Expense ratio
 
29.7
%
 
 
58.1
%
 
 
26.5
%
 
 
30.2
%
Combined ratio
 
93.4
%
 
 
98.1
%
 
 
75.7
%
 
 
86.2
%


5

ALLIED WORLD ASSURANCE COMPANY HOLDINGS, AG
UNAUDITED CONSOLIDATED SEGMENT RESULTS
FOR THE YEAR ENDED DECEMBER 31, 2012

 
 
 
Year ended December 31, 2012
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
North American
 
Global Markets
 
 
 
Consolidated
 
 
 
Insurance
 
Insurance
 
Reinsurance
 
Totals
Revenues
 
 
 
 
 
 
 
 
 
 
 
 
Gross premiums written
$
1,376,040

 
$
192,981

 
$
760,250

 
$
2,329,271

 
Net premiums written
$
964,199

 
$
125,577

 
$
748,047

 
$
1,837,823

 
Net premiums earned
$
892,721

 
$
115,660

 
$
740,517

 
$
1,748,898

 
 
Total revenues
$
892,721

 
$
115,660

 
$
740,517

 
$
1,748,898

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Expenses
 
 
 
 
 
 
 
 
 
 
 
 
Net losses and loss expenses
$
608,762

 
$
19,536

 
$
510,966

 
$
1,139,264

 
Acquisition costs
 
77,701

 
 
8,483

 
 
119,538

 
 
205,722

 
General and administrative expenses
 
185,231

 
 
48,365

 
 
73,725

 
 
307,321

 
 
Total expenses
$
871,694

 
$
76,384

 
$
704,229

 
$
1,652,307

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Underwriting income
$
21,027

 
$
39,276

 
$
36,288

 
$
96,591

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other insurance-related income
 

 
 

 
 

 
 

 
Other insurance-related expenses
 

 
 

 
 

 
 

Segment income
$
21,027

 
$
39,276

 
$
36,288

 
$
96,591

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net investment income
 
 
 
 
 
 
 
 
 
 
167,141

 
Net realized investment gains
 
 
 
 
 
 
 
 
 
 
306,436

 
Amortization of intangible assets
 
 
 
 
 
 
 
 
 
 
(2,533)

 
Interest expense
 
 
 
 
 
 
 
 
 
 
(55,405)

 
Foreign exchange loss
 
 
 
 
 
 
 
 
 
 
(783)

Income before income taxes
 
 
 
 
 
 
 
 
 
$
511,447

 
 
 
 
 
 
 
 
 
 
 
 
 
 
GAAP Ratios
 
 
 
 
 
 
 
 
 
 
 
Loss and loss expense ratio
 
68.2
%
 
 
16.9
%
 
 
69.0
%
 
 
65.1
%
Acquisition cost ratio
 
8.7
%
 
 
7.3
%
 
 
16.1
%
 
 
11.8
%
General and administrative expense ratio
 
20.7
%
 
 
41.8
%
 
 
10.0
%
 
 
17.6
%
Expense ratio
 
29.4
%
 
 
49.1
%
 
 
26.1
%
 
 
29.4
%
Combined ratio
 
97.6
%
 
 
66.0
%
 
 
95.1
%
 
 
94.5
%


6

ALLIED WORLD ASSURANCE COMPANY HOLDINGS, AG
UNAUDITED CONSOLIDATED SEGMENT RESULTS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2014


 
 
 
Nine months ended September 30, 2014
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
North American
 
Global Markets
 
 
 
Consolidated
 
 
 
Insurance
 
Insurance
 
Reinsurance
 
Totals
Revenues
 
 
 
 
 
 
 
 
 
 
 
 
Gross premiums written
$
1,285,044

 
$
196,086

 
$
888,552

 
$
2,369,682

 
Net premiums written
$
905,279

 
$
126,574

 
$
862,427

 
$
1,894,280

 
Net premiums earned
$
808,453

 
$
114,584

 
$
686,232

 
$
1,609,269

 
 
Total revenues
$
808,453

 
$
114,584

 
$
686,232

 
$
1,609,269

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Expenses
 
 
 
 
 
 
 
 
 
 
 
 
Net losses and loss expenses
$
520,586

 
$
35,204

 
$
370,441

 
$
926,231

 
Acquisition costs
 
76,531

 
 
12,615

 
 
125,258

 
 
214,404

 
General and administrative expenses
 
159,063

 
 
48,861

 
 
56,898

 
 
264,822

 
 
Total expenses
$
756,180

 
$
96,680

 
$
552,597

 
$
1,405,457

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Underwriting income
$
52,273

 
$
17,904

 
$
133,635

 
$
203,812

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other insurance-related income
 
1,032

 
 

 
 

 
 
1,032

 
Other insurance-related expenses
 
1,270

 
 
5,305

 
 

 
 
6,575

Segment income
$
52,035

 
$
12,599

 
$
133,635

 
$
198,269

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net investment income
 
 
 
 
 
 
 
 
 
 
127,824

 
Net realized investment gains
 
 
 
 
 
 
 
 
 
 
104,286

 
Amortization of intangible assets
 
 
 
 
 
 
 
 
 
 
(1,900)

 
Interest expense
 
 
 
 
 
 
 
 
 
 
(43,451)

 
Foreign exchange loss
 
 
 
 
 
 
 
 
 
 
(978)

Income before income taxes
 
 
 
 
 
 
 
 
 
$
384,050

 
 
 
 
 
 
 
 
 
 
 
 
 
 
GAAP Ratios
 
 
 
 
 
 
 
 
 
 
 
Loss and loss expense ratio
 
64.4
%
 
 
30.7
%
 
 
54.0
%
 
 
57.6
%
Acquisition cost ratio
 
9.5
%
 
 
11.0
%
 
 
18.3
%
 
 
13.3
%
General and administrative expense ratio
 
19.7
%
 
 
42.6
%
 
 
8.3
%
 
 
16.5
%
Expense ratio
 
29.2
%
 
 
53.6
%
 
 
26.6
%
 
 
29.8
%
Combined ratio
 
93.6
%
 
 
84.3
%
 
 
80.6
%
 
 
87.4
%


7

ALLIED WORLD ASSURANCE COMPANY HOLDINGS, AG
UNAUDITED CONSOLIDATED SEGMENT RESULTS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2013


 
 
 
Nine months ended September 30, 2013
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
North American
 
Global Markets
 
 
 
Consolidated
 
 
 
Insurance
 
Insurance
 
Reinsurance
 
Totals
Revenues
 
 
 
 
 
 
 
 
 
 
 
 
Gross premiums written
$
1,169,782

 
$
156,232

 
$
857,160

 
$
2,183,174

 
Net premiums written
$
811,473

 
$
100,762

 
$
817,116

 
$
1,729,351

 
Net premiums earned
$
760,581

 
$
91,705

 
$
628,986

 
$
1,481,272

 
 
Total revenues
$
760,581

 
$
91,705

 
$
628,986

 
$
1,481,272

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Expenses
 
 
 
 
 
 
 
 
 
 
 
 
Net losses and loss expenses
$
453,680

 
$
36,227

 
$
317,369

 
$
807,276

 
Acquisition costs
 
70,329

 
 
7,006

 
 
109,081

 
 
186,416

 
General and administrative expenses
 
151,601

 
 
43,287

 
 
56,930

 
 
251,818

 
 
Total expenses
$
675,610

 
$
86,520

 
$
483,380

 
$
1,245,510

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Underwriting income
$
84,971

 
$
5,185

 
$
145,606

 
$
235,762

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other insurance-related income
 

 
 

 
 

 
 

 
Other insurance-related expenses
 

 
 

 
 

 
 

Segment income
$
84,971

 
$
5,185

 
$
145,606

 
$
235,762

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net investment income
 
 
 
 
 
 
 
 
 
 
110,294

 
Net realized investment losses
 
 
 
 
 
 
 
 
 
 
(8,074)

 
Amortization of intangible assets
 
 
 
 
 
 
 
 
 
 
(1,900)

 
Interest expense
 
 
 
 
 
 
 
 
 
 
(42,416)

 
Foreign exchange loss
 
 
 
 
 
 
 
 
 
 
(7,361)

Income before income taxes
 
 
 
 
 
 
 
 
 
$
286,305

 
 
 
 
 
 
 
 
 
 
 
 
 
 
GAAP Ratios
 
 
 
 
 
 
 
 
 
 
 
Loss and loss expense ratio
 
59.6
%
 
 
39.5
%
 
 
50.5
%
 
 
54.5
%
Acquisition cost ratio
 
9.2
%
 
 
7.6
%
 
 
17.3
%
 
 
12.6
%
General and administrative expense ratio
 
19.9
%
 
 
47.2
%
 
 
9.1
%
 
 
17.0
%
Expense ratio
 
29.1
%
 
 
54.8
%
 
 
26.4
%
 
 
29.6
%
Combined ratio
 
88.7
%
 
 
94.3
%
 
 
76.9
%
 
 
84.1
%


8

ALLIED WORLD ASSURANCE COMPANY HOLDINGS, AG
UNAUDITED CONSOLIDATED SEGMENT RESULTS
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2014


 
 
 
Three months ended September 30, 2014
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
North American
 
Global Markets
 
 
 
Consolidated
 
 
 
Insurance
 
Insurance
 
Reinsurance
 
Totals
Revenues
 
 
 
 
 
 
 
 
 
 
 
 
Gross premiums written
$
466,792

 
$
64,125

 
$
176,967

 
$
707,884

 
Net premiums written
$
364,739

 
$
44,794

 
$
159,209

 
$
568,742

 
Net premiums earned
$
277,203

 
$
41,574

 
$
222,960

 
$
541,737

 
 
Total revenues
$
277,203

 
$
41,574

 
$
222,960

 
$
541,737

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Expenses
 
 
 
 
 
 
 
 
 
 
 
 
Net losses and loss expenses
$
180,682

 
$
28,142

 
$
127,266

 
$
336,090

 
Acquisition costs
 
27,027

 
 
5,313

 
 
40,063

 
 
72,403

 
General and administrative expenses
 
52,921

 
 
16,802

 
 
18,571

 
 
88,294

 
 
Total expenses
$
260,630

 
$
50,257

 
$
185,900

 
$
496,787

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Underwriting income (loss)
$
16,573

 
$
(8,683)

 
$
37,060

 
$
44,950

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other insurance-related income
 
1,032

 
 

 
 

 
 
1,032

 
Other insurance-related expenses
 
1,270

 
 
5,305

 
 

 
 
6,575

Segment income (loss)
$
16,335

 
$
(13,988)

 
$
37,060

 
$
39,407

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net investment income
 
 
 
 
 
 
 
 
 
 
43,412

 
Net realized investment losses
 
 
 
 
 
 
 
 
 
 
(35,136)

 
Amortization of intangible assets
 
 
 
 
 
 
 
 
 
 
(633)

 
Interest expense
 
 
 
 
 
 
 
 
 
 
(14,325)

 
Foreign exchange loss
 
 
 
 
 
 
 
 
 
 
(278)

Income before income taxes
 
 
 
 
 
 
 
 
 
$
32,447

 
 
 
 
 
 
 
 
 
 
 
 
 
 
GAAP Ratios
 
 
 
 
 
 
 
 
 
 
 
Loss and loss expense ratio
 
65.2
%
 
 
67.7
%
 
 
57.1
%
 
 
62.0
%
Acquisition cost ratio
 
9.7
%
 
 
12.8
%
 
 
18.0
%
 
 
13.4
%
General and administrative expense ratio
 
19.1
%
 
 
40.4
%
 
 
8.3
%
 
 
16.3
%
Expense ratio
 
28.8
%
 
 
53.2
%
 
 
26.3
%
 
 
29.7
%
Combined ratio
 
94.0
%
 
 
120.9
%
 
 
83.4
%
 
 
91.7
%


9

ALLIED WORLD ASSURANCE COMPANY HOLDINGS, AG
UNAUDITED CONSOLIDATED SEGMENT RESULTS
FOR THE THREE MONTHS ENDED JUNE 30, 2014


 
 
 
Three months ended June 30, 2014
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
North American
 
Global Markets
 
 
 
Consolidated
 
 
 
Insurance
 
Insurance
 
Reinsurance
 
Totals
Revenues
 
 
 
 
 
 
 
 
 
 
 
 
Gross premiums written
$
472,340

 
$
73,564

 
$
214,501

 
$
760,405

 
Net premiums written
$
293,388

 
$
50,733

 
$
209,803

 
$
553,924

 
Net premiums earned
$
265,800

 
$
37,998

 
$
233,449

 
$
537,247

 
 
Total revenues
$
265,800

 
$
37,998

 
$
233,449

 
$
537,247

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Expenses
 
 
 
 
 
 
 
 
 
 
 
 
Net losses and loss expenses
$
178,732

 
$
2,673

 
$
133,450

 
$
314,855

 
Acquisition costs
 
25,829

 
 
4,423

 
 
44,027

 
 
74,279

 
General and administrative expenses
 
58,527

 
 
17,477

 
 
20,184

 
 
96,188

 
 
Total expenses
$
263,088

 
$
24,573

 
$
197,661

 
$
485,322

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Underwriting income
$
2,712

 
$
13,425

 
$
35,788

 
$
51,925

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other insurance-related income
 

 
 

 
 

 
 

 
Other insurance-related expenses
 

 
 

 
 

 
 

Segment income
$
2,712

 
$
13,425

 
$
35,788

 
$
51,925

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net investment income
 
 
 
 
 
 
 
 
 
 
36,793

 
Net realized investment gains
 
 
 
 
 
 
 
 
 
 
85,217

 
Amortization of intangible assets
 
 
 
 
 
 
 
 
 
 
(634)

 
Interest expense
 
 
 
 
 
 
 
 
 
 
(14,592)

 
Foreign exchange loss
 
 
 
 
 
 
 
 
 
 
(651)

Income before income taxes
 
 
 
 
 
 
 
 
 
$
158,058

 
 
 
 
 
 
 
 
 
 
 
 
 
 
GAAP Ratios
 
 
 
 
 
 
 
 
 
 
 
Loss and loss expense ratio
 
67.2
%
 
 
7.0
%
 
 
57.2
%
 
 
58.6
%
Acquisition cost ratio
 
9.7
%
 
 
11.6
%
 
 
18.9
%
 
 
13.8
%
General and administrative expense ratio
 
22.0
%
 
 
46.0
%
 
 
8.6
%
 
 
17.9
%
Expense ratio
 
31.7
%
 
 
57.6
%
 
 
27.5
%
 
 
31.7
%
Combined ratio
 
98.9
%
 
 
64.6
%
 
 
84.7
%
 
 
90.3
%


10

ALLIED WORLD ASSURANCE COMPANY HOLDINGS, AG
UNAUDITED CONSOLIDATED SEGMENT RESULTS
FOR THE THREE MONTHS ENDED MARCH 31, 2014


 
 
 
Three months ended March 31, 2014
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
North American
 
Global Markets
 
 
 
Consolidated
 
 
 
Insurance
 
Insurance
 
Reinsurance
 
Totals
Revenues
 
 
 
 
 
 
 
 
 
 
 
 
Gross premiums written
$
345,912

 
$
58,397

 
$
497,084

 
$
901,393

 
Net premiums written
$
247,152

 
$
31,047

 
$
493,415

 
$
771,614

 
Net premiums earned
$
265,451

 
$
35,011

 
$
229,823

 
$
530,285

 
 
Total revenues
$
265,451

 
$
35,011

 
$
229,823

 
$
530,285

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Expenses
 
 
 
 
 
 
 
 
 
 
 
 
Net losses and loss expenses
$
161,172

 
$
4,389

 
$
109,725

 
$
275,286

 
Acquisition costs
 
23,675

 
 
2,879

 
 
41,168

 
 
67,722

 
General and administrative expenses
 
47,615

 
 
14,582

 
 
18,143

 
 
80,340

 
 
Total expenses
$
232,462

 
$
21,850

 
$
169,036

 
$
423,348

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Underwriting income
$
32,989

 
$
13,161

 
$
60,787

 
$
106,937

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other insurance-related income
 

 
 

 
 

 
 

 
Other insurance-related expenses
 

 
 

 
 

 
 

Segment income
$
32,989

 
$
13,161

 
$
60,787

 
$
106,937

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net investment income
 
 
 
 
 
 
 
 
 
 
47,619

 
Net realized investment gains
 
 
 
 
 
 
 
 
 
 
54,205

 
Amortization of intangible assets
 
 
 
 
 
 
 
 
 
 
(633)

 
Interest expense
 
 
 
 
 
 
 
 
 
 
(14,534)

 
Foreign exchange loss
 
 
 
 
 
 
 
 
 
 
(49)

Income before income taxes
 
 
 
 
 
 
 
 
 
$
193,545

 
 
 
 
 
 
 
 
 
 
 
 
 
 
GAAP Ratios
 
 
 
 
 
 
 
 
 
 
 
Loss and loss expense ratio
 
60.7
%
 
 
12.5
%
 
 
47.7
%
 
 
51.9
%
Acquisition cost ratio
 
8.9
%
 
 
8.2
%
 
 
17.9
%
 
 
12.8
%
General and administrative expense ratio
 
17.9
%
 
 
41.6
%
 
 
7.9
%
 
 
15.2
%
Expense ratio
 
26.8
%
 
 
49.8
%
 
 
25.8
%
 
 
28.0
%
Combined ratio
 
87.5
%
 
 
62.3
%
 
 
73.5
%
 
 
79.9
%


11

ALLIED WORLD ASSURANCE COMPANY HOLDINGS, AG
UNAUDITED CONSOLIDATED SEGMENT RESULTS
FOR THE THREE MONTHS ENDED DECEMBER 31, 2013


 
 
 
Three months ended December 31, 2013
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
North American
 
Global Markets
 
 
 
Consolidated
 
 
 
Insurance
 
Insurance
 
Reinsurance
 
Totals
Revenues
 
 
 
 
 
 
 
 
 
 
 
 
Gross premiums written
$
402,574

 
$
76,322

 
$
76,594

 
$
555,490

 
Net premiums written
$
270,969

 
$
44,239

 
$
75,922

 
$
391,130

 
Net premiums earned
$
262,398

 
$
34,303

 
$
227,860

 
$
524,561

 
 
Total revenues
$
262,398

 
$
34,303

 
$
227,860

 
$
524,561

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Expenses
 
 
 
 
 
 
 
 
 
 
 
 
Net losses and loss expenses
$
197,587

 
$
14,168

 
$
104,211

 
$
315,966

 
Acquisition costs
 
24,540

 
 
3,045

 
 
38,672

 
 
66,257

 
General and administrative expenses
 
57,441

 
 
19,877

 
 
23,149

 
 
100,467

 
 
Total expenses
$
279,568

 
$
37,090

 
$
166,032

 
$
482,690

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Underwriting (loss) income
$
(17,170)

 
$
(2,787)

 
$
61,828

 
$
41,871

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other insurance-related income
 

 
 

 
 

 
 

 
Other insurance-related expenses
 

 
 

 
 

 
 

Segment (loss) income
$
(17,170)

 
$
(2,787)

 
$
61,828

 
$
41,871

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net investment income
 
 
 
 
 
 
 
 
 
 
47,270

 
Net realized investment gains
 
 
 
 
 
 
 
 
 
 
67,599

 
Amortization of intangible assets
 
 
 
 
 
 
 
 
 
 
(633)

 
Interest expense
 
 
 
 
 
 
 
 
 
 
(14,094)

 
Foreign exchange loss
 
 
 
 
 
 
 
 
 
 
(658)

Income before income taxes
 
 
 
 
 
 
 
 
 
$
141,355

 
 
 
 
 
 
 
 
 
 
 
 
 
 
GAAP Ratios
 
 
 
 
 
 
 
 
 
 
 
Loss and loss expense ratio
 
75.3
%
 
 
41.3
%
 
 
45.7
%
 
 
60.2
%
Acquisition cost ratio
 
9.4
%
 
 
8.9
%
 
 
17.0
%
 
 
12.6
%
General and administrative expense ratio
 
21.9
%
 
 
57.9
%
 
 
10.2
%
 
 
19.2
%
Expense ratio
 
31.3
%
 
 
66.8
%
 
 
27.2
%
 
 
31.8
%
Combined ratio
 
106.6
%
 
 
108.1
%
 
 
72.9
%
 
 
92.0
%


12

ALLIED WORLD ASSURANCE COMPANY HOLDINGS, AG
UNAUDITED CONSOLIDATED SEGMENT RESULTS
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2013


 
 
 
Three months ended September 30, 2013
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
North American
 
Global Markets
 
 
 
Consolidated
 
 
 
Insurance
 
Insurance
 
Reinsurance
 
Totals
Revenues
 
 
 
 
 
 
 
 
 
 
 
 
Gross premiums written
$
389,550

 
$
52,040

 
$
139,303

 
$
580,893

 
Net premiums written
$
280,862

 
$
33,562

 
$
138,653

 
$
453,077

 
Net premiums earned
$
263,172

 
$
31,984

 
$
215,617

 
$
510,773

 
 
Total revenues
$
263,172

 
$
31,984

 
$
215,617

 
$
510,773

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Expenses
 
 
 
 
 
 
 
 
 
 
 
 
Net losses and loss expenses
$
157,308

 
$
15,008

 
$
104,654

 
$
276,970

 
Acquisition costs
 
25,670

 
 
2,474

 
 
36,970

 
 
65,114

 
General and administrative expenses
 
53,011

 
 
15,055

 
 
20,487

 
 
88,553

 
 
Total expenses
$
235,989

 
$
32,537

 
$
162,111

 
$
430,637

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Underwriting income (loss)
$
27,183

 
$
(553)

 
$
53,506

 
$
80,136

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other insurance-related income
 

 
 

 
 

 
 

 
Other insurance-related expenses
 

 
 

 
 

 
 

Segment income (loss)
$
27,183

 
$
(553)

 
$
53,506

 
$
80,136

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net investment income
 
 
 
 
 
 
 
 
 
 
39,271

 
Net realized investment gains
 
 
 
 
 
 
 
 
 
 
27,487

 
Amortization of intangible assets
 
 
 
 
 
 
 
 
 
 
(633)

 
Interest expense
 
 
 
 
 
 
 
 
 
 
(14,094)

 
Foreign exchange loss
 
 
 
 
 
 
 
 
 
 
(4,353)

Income before income taxes
 
 
 
 
 
 
 
 
 
$
127,814

 
 
 
 
 
 
 
 
 
 
 
 
 
 
GAAP Ratios
 
 
 
 
 
 
 
 
 
 
 
Loss and loss expense ratio
 
59.8
%
 
 
46.9
%
 
 
48.5
%
 
 
54.2
%
Acquisition cost ratio
 
9.8
%
 
 
7.7
%
 
 
17.1
%
 
 
12.7
%
General and administrative expense ratio
 
20.1
%
 
 
47.1
%
 
 
9.5
%
 
 
17.3
%
Expense ratio
 
29.9
%
 
 
54.8
%
 
 
26.6
%
 
 
30.0
%
Combined ratio
 
89.7
%
 
 
101.7
%
 
 
75.1
%
 
 
84.2
%


13

ALLIED WORLD ASSURANCE COMPANY HOLDINGS, AG
UNAUDITED CONSOLIDATED SEGMENT RESULTS
FOR THE THREE MONTHS ENDED JUNE 30, 2013


 
 
 
Three months ended June 30, 2013
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
North American
 
Global Markets
 
 
 
Consolidated
 
 
 
Insurance
 
Insurance
 
Reinsurance
 
Totals
Revenues
 
 
 
 
 
 
 
 
 
 
 
 
Gross premiums written
$
441,557

 
$
58,333

 
$
265,310

 
$
765,200

 
Net premiums written
$
290,989

 
$
36,824

 
$
253,409

 
$
581,222

 
Net premiums earned
$
253,345

 
$
31,132

 
$
222,794

 
$
507,271

 
 
Total revenues
$
253,345

 
$
31,132

 
$
222,794

 
$
507,271

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Expenses
 
 
 
 
 
 
 
 
 
 
 
 
Net losses and loss expenses
$
142,431

 
$
12,901

 
$
119,796

 
$
275,128

 
Acquisition costs
 
24,194

 
 
2,718

 
 
37,705

 
 
64,617

 
General and administrative expenses
 
48,565

 
 
13,872

 
 
18,148

 
 
80,585

 
 
Total expenses
$
215,190

 
$
29,491

 
$
175,649

 
$
420,330

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Underwriting income
$
38,155

 
$
1,641

 
$
47,145

 
$
86,941

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other insurance-related income
 

 
 

 
 

 
 

 
Other insurance-related expenses
 

 
 

 
 

 
 

Segment income
$
38,155

 
$
1,641

 
$
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
 
56.2
%
 
 
41.4
%
 
 
53.8
%
 
 
54.2
%
Acquisition cost ratio
 
9.5
%
 
 
8.7
%
 
 
16.9
%
 
 
12.7
%
General and administrative expense ratio
 
19.2
%
 
 
44.6
%
 
 
8.1
%
 
 
15.9
%
Expense ratio
 
28.7
%
 
 
53.3
%
 
 
25.0
%
 
 
28.6
%
Combined ratio
 
84.9
%
 
 
94.7
%
 
 
78.8
%
 
 
82.8
%


14

ALLIED WORLD ASSURANCE COMPANY HOLDINGS, AG
UNAUDITED CONSOLIDATED SEGMENT RESULTS
FOR THE THREE MONTHS ENDED MARCH 31, 2013


 
 
 
Three months ended March 31, 2013
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
North American
 
Global Markets
 
 
 
Consolidated
 
 
 
Insurance
 
Insurance
 
Reinsurance
 
Totals
Revenues
 
 
 
 
 
 
 
 
 
 
 
 
Gross premiums written
$
338,674

 
$
45,860

 
$
452,547

 
$
837,081

 
Net premiums written
$
239,621

 
$
30,377

 
$
425,054

 
$
695,052

 
Net premiums earned
$
244,063

 
$
28,590

 
$
190,575

 
$
463,228

 
 
Total revenues
$
244,063

 
$
28,590

 
$
190,575

 
$
463,228

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Expenses
 
 
 
 
 
 
 
 
 
 
 
 
Net losses and loss expenses
$
153,941

 
$
8,318

 
$
92,919

 
$
255,178

 
Acquisition costs
 
20,465

 
 
1,814

 
 
34,406

 
 
56,685

 
General and administrative expenses
 
50,025

 
 
14,360

 
 
18,295

 
 
82,680

 
 
Total expenses
$
224,431

 
$
24,492

 
$
145,620

 
$
394,543

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Underwriting income
$
19,632

 
$
4,098

 
$
44,955

 
$
68,685

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other insurance-related income
 

 
 

 
 

 
 

 
Other insurance-related expenses
 

 
 

 
 

 
 

Segment income
$
19,632

 
$
4,098

 
$
44,955

 
$
68,685

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net investment income
 
 
 
 
 
 
 
 
 
 
33,388

 
Net realized investment gains
 
 
 
 
 
 
 
 
 
 
79,637

 
Amortization of intangible assets
 
 
 
 
 
 
 
 
 
 
(633)

 
Interest expense
 
 
 
 
 
 
 
 
 
 
(14,134)

 
Foreign exchange loss
 
 
 
 
 
 
 
 
 
 
(2,518)

Income before income taxes
 
 
 
 
 
 
 
 
 
$
164,425

 
 
 
 
 
 
 
 
 
 
 
 
 
 
GAAP Ratios
 
 
 
 
 
 
 
 
 
 
 
Loss and loss expense ratio
 
63.1
%
 
 
29.1
%
 
 
48.8
%
 
 
55.1
%
Acquisition cost ratio
 
8.4
%
 
 
6.3
%
 
 
18.1
%
 
 
12.2
%
General and administrative expense ratio
 
20.5
%
 
 
50.2
%
 
 
9.6
%
 
 
17.8
%
Expense ratio
 
28.9
%
 
 
56.5
%
 
 
27.7
%
 
 
30.0
%
Combined ratio
 
92.0
%
 
 
85.6
%
 
 
76.5
%
 
 
85.1
%


15