Allied World Announces Share and Warrant Repurchase from Founding Shareholders

By Allied World Assurance Company Holdings Ltd, PRNE
Friday, November 5, 2010

PEMBROKE, Bermuda, November 6, 2010 - Allied World Assurance Company Holdings, Ltd (NYSE: AWH) today reported
that the company has entered into an agreement to repurchase the remainder of
its securities held by certain GS Capital Partners and other investment
funds, which are affiliates of The Goldman Sachs Group, Inc. and founding
shareholders of Allied World. These securities consist of 3,159,793 common
shares and warrants to purchase an additional 1,500,000 common shares. The
aggregate repurchase price for these securities will be US$222.6 million, of
which US$185.4 million will be for the repurchase of the common shares and
US$37.2 million will be for the repurchase of the warrants. The repurchase
price per common share is based on and reflects a 0.5% discount from the
volume-weighted average trading price of the company's common shares on
November 5, 2010. The repurchase price per common share underlying the
warrants is equal to the volume-weighted average trading price of the
company's common shares on November 5, 2010, less the exercise price for such
warrants, which is US$34.20 per share, plus US$0.01 per share. The repurchase
of the common shares represents approximately 7.5% of the total common shares
outstanding as of September 30, 2010.

Subject to the satisfaction of certain conditions, the repurchase is
expected to close on November 16, 2010. The repurchase will be executed
separately from the company's US$500 million share repurchase program that
was authorized by its Board of Directors in May 2010. Under the terms of the
repurchase agreement, the company will have the right to terminate its
repurchase obligation, without incurring any fees or penalties, under certain
limited circumstances.

About Allied World Assurance Company

Allied World Assurance Company Holdings, Ltd, through its subsidiaries,
is a global provider of innovative property, casualty and specialty insurance
and reinsurance solutions, offering superior client service through offices
in Bermuda, Europe, Hong Kong, Singapore and the United States. Our insurance
and reinsurance subsidiaries are rated A (Excellent) by A.M. Best Company.
For further information on Allied World, please visit our website at

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 the satisfaction of the conditions to the closing of the
repurchase described herein; 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
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.

Media: Faye Cook, Vice President, Marketing & Communications, +1-441-278-5406, faye.cook at, Investors: Keith J. Lennox, Investor Relations Officer, +1-646-794-0750, keith.lennox at, Website:

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