Allied World Europe Launches SME360(SM) Product Suite

PEMBROKE, Bermuda, May 19, 2010 - Allied World Assurance Company Holdings, Ltd (NYSE: AWH) announced today
that Allied World Europe has launched a unique product suite specific to
small-to-medium enterprises called SME360(SM). SME360 was produced by
insurance and legal professionals to provide comprehensive professional
liability coverage and on-going claims support to a diverse spectrum of
businesses in the United Kingdom and European Union.

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SME360 comprises 11 core Professional Indemnity products segmented by
industry, which includes Architects, Accountants, Actuaries, Design &
Construction, Engineers, Information Technology, Insurance Brokers,
Management Consultants, Media, Miscellaneous, and Surveyors. SME360 also
comprises additional coverages that complete the suite, including Directors &
Officers, Crime, Pension Trustee Liability, Nonprofit/Charity Liability,
LLP/Partnership Liability, Fortress (blend of D&O / EPL / Entity) and
Management Liability (blend of D&O / PTL / EPL / Entity / Crime) coverage.
The maximum limit on Professional Indemnity products is 5,000,000 (pounds
sterling), the maximum limit for Non-Professional Indemnity products is
10,000,000 (pounds sterling) and the maximum limit for Blended D&O and
Professional Indemnity products is 5,000,000 (pounds sterling).

Kevin Cleary, Vice President, SME, Professional Lines in Europe
commented, "Our team has extensive experience underwriting these lines in the
London and extended United Kingdom marketplace, and we are excited about the
opportunities in this market segment. We look forward to fostering mutually
beneficial relationships with our trading partners and policyholders by
providing coverage as well as support and guidance through our in-house
claims and risk management teams."

Kevin Cleary joined the Allied World Europe team in February to develop
and launch the SME division. Mr. Cleary has previous underwriting experience
at DUAL Corporate Risks and Chubb in Manchester, England.

Actual coverage may vary and is subject to policy language as issued.

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; investigations of market
practices and related settlement terms; 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, VP, 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, both of Allied World Assurance Company Holdings, Ltd