Allied World Hong Kong Launches Bankers’ Wrap

PEMBROKE, Bermuda -

Allied World Assurance Company, Ltd, a member company of Allied World Assurance Company Holdings, Ltd (NYSE: AWH) today announced the launch of a new product for Asian banks.

Bankers’ Wrap follows the recent launch of the REFLEX, FLEXCESS and FLEXION products and highlights Allied World’s ongoing commitment to adding value to the Asian marketplace. The product, unique to the Asian market, provides a new level of protection for Banks at a time when they are facing significant litigation exposures and an uncertain operational risk outlook.

Benjamin Howell, Vice President, Professional Lines, commented from Hong Kong, “Many market participants are restricting coverage for banks at a time when their clients need them most. Conversely, Allied World has stepped up with an innovative excess solution through which banks can achieve a range of structures, with unique benefits, across their Professional Lines insurance placements. Bankers’ Wrap is Allied World Hong Kong’s recognition that bank operational risk management is a sophisticated area which requires a customized approach to catastrophic events.”

The product is available through a limited number of specialist broker channels with a limit of up to US$25,000,000.

For more information on this new product, please contact: Benjamin Howell Vice President, Professional Lines, Asia +852-3405-7731 ben.howell@awac.com

About Allied World Assurance Company

Allied World Assurance Company, Ltd. has a branch office in Hong Kong, which is regulated by the Office of Commissioners of Insurance, Hong Kong. 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, the United States, Europe and Hong Kong. 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 the ability to recognize the benefits of the Darwin Professional Underwriters, Inc. acquisition; 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 including those related to the ongoing financial crisis; 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.

Source: Allied World Assurance Company, Ltd

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