Allied World Announces US$250 Million Share Repurchase From Founding Shareholders

PEMBROKE, Bermuda, August 8, 2010 - Allied World Assurance Company Holdings, Ltd (NYSE: AWH) today reported
that the company has repurchased US$250 million of its common shares from
certain GS Capital Partners and other investment funds, which are affiliates
of The Goldman Sachs Group, Inc. and founding shareholders of Allied World.
Allied World has repurchased five million common shares at US$50 per share,
representing approximately a 0.5% discount to the company's closing stock
price of US$50.23 on August 6, 2010. The repurchase represents approximately
9.4% of the diluted common shares outstanding as of June 30, 2010. Following
the repurchase, these affiliates of The Goldman Sachs Group, Inc. hold
approximately 3.16 million non-voting shares of Allied World, or
approximately 7.2% of the company's total common shares issued and
outstanding. The repurchase has been executed separately from the company's
US$500 million share repurchase program that was authorized by its Board of
Directors in May 2010. This transaction was funded using available cash on
hand.

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
www.awac.com.

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.

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