Allied World Reports 62% Increase in Second Quarter 2010 Net Income; 9.4% Year to Date Increase in Diluted Book Value Per Share
By Allied World Assurance Company Holdings Ltd, PRNEWednesday, August 4, 2010
PEMBROKE, Bermuda, August 5, 2010 - Allied World Assurance Company Holdings, Ltd (NYSE: AWH) today reported
net income of $184.0 million, or $3.47 per diluted share, for the second
quarter of 2010 compared to net income of $113.7 million, or $2.22 per
diluted share, for the second quarter of 2009. Net income for the six months
ended June 30, 2010 was $317.7 million, or $5.98 per diluted share, compared
to net income of $245.1 million, or $4.79 per diluted share, for the first
six months of 2009.
The company reported operating income of $95.7 million, or $1.80 per
diluted share, for the second quarter of 2010 compared to operating income of
$112.8 million, or $2.20 per diluted share, for the second quarter of 2009.
Weather-related losses as well as the impact of a mine collapse reduced
operating income by $30.0 million, or $0.57 cents per diluted share, in the
second quarter of 2010. Operating income for the six months ended June 30,
2010 was $157.0 million, or $2.96 per diluted share, compared to operating
income of $250.4 million, or $4.89 per diluted share, for the first six
months of 2009.
President and Chief Executive Officer Scott Carmilani commented, "We are
very pleased with the company's profitable results for the first half of the
year despite the impact of unprecedented industry loss activity and the
increasingly competitive pricing environment. Our profitable results continue
to be driven by our strong investment portfolio and our historically prudent
and responsible underwriting philosophy. Our ability to generate $318 million
in net income through the first half of the year, combined with our share
repurchase initiative, has resulted in the company's diluted book value
increasing to over $65 per share, up over 9% from the beginning of the year."
Mr. Carmilani continued, "I am also very pleased that during the quarter
we were able to announce our establishment of Syndicate 2232 at Lloyd's of
London. This is another important accomplishment for our company as we expand
our global reach."
Underwriting Results
Gross premiums written were $493.8 million in the second quarter of 2010,
a 0.2% increase compared to $492.8 million in the second quarter of 2009. For
the six months ended June 30, 2010, gross premiums written totaled $998.0
million, a 2.6% increase compared to $972.4 million in the first six months
of last year. These increases were primarily due to new business written in
our reinsurance and U.S. insurance segments offset by the non-renewal of
business that did not meet our underwriting requirements due to inadequate
pricing and/or terms and conditions.
Net premiums written were $369.8 million in the second quarter of 2010, a
2.3% increase compared to $361.4 million in the second quarter of 2009. For
the six months ended June 30, 2010, net premiums written totaled $803.1
million, a 4.8% increase compared to $766.5 million in the first six months
of 2009. These increases in net premiums written were primarily due to higher
gross premiums written as well as a reduction of premiums ceded.
The combined ratio was 87.0% in the second quarter of 2010 compared to
82.8% in the second quarter of 2009. The loss and loss expense ratio was
55.7% in the second quarter of 2010 compared to 53.3% in the second quarter
of 2009. During the second quarter of 2010, the company recorded net
favorable reserve development on prior loss years of $64.1 million, a benefit
of 18.9 percentage points to the company's loss and loss expense ratio for
the quarter. This compares to the second quarter of 2009, where the company
recorded net favorable reserve development on prior loss years of $36.6
million, a benefit of 11.0 percentage points to the company's loss and loss
expense ratio for that quarter. Absent prior year reserve adjustments, the
loss and loss expense ratio for the second quarter of 2010 was 74.6%. This
ratio was impacted by $30.0 million of losses, or 8.9 percentage points, from
weather-related losses and a mine collapse.
For the six months ended June 30, 2010, the combined ratio was 93.1%
compared to 79.0% in the first six months of 2009. The loss and loss expense
ratio for the six months ended June 30, 2010 was 62.1% compared to 49.6% for
the six months ended June 30, 2009. For the first six months of 2010, the
company recorded net favorable reserve development on prior loss years of
$138.1 million. This net favorable reserve development benefited the
company's loss and loss expense ratio by 20.2 points after adjusting for the
impact of a commutation recorded during the six months ended June 30, 2010.
This compares to the first six months of 2009, where the company recorded net
favorable reserve development on prior loss years of $96.8 million, a benefit
of 14.7 percentage points to the company's loss and loss expense ratio for
the first half of 2009. Absent the favorable reserve development, the loss
and loss expense ratio related to the current loss year was 82.3%. This ratio
was impacted by $116.5 million, or 17.2 percentage points, from loss events
during the first half of 2010 including $65.0 million from the earthquake in
Chile and $51.5 million from other events.
The company's expense ratio was 31.3% for the second quarter of 2010
compared to 29.5% for the second quarter of 2009. The expense ratio was 31.0%
for the six months ended June 30, 2010 compared to 29.4% in the first six
months of 2009. These increases were primarily due to increases in our
overall staff count and related increases in incentive compensation expenses.
Investment Results
The total return on the company's investment portfolio for the three and
six months ended June 30, 2010 was approximately 2.0% and 3.9%, respectively.
Net investment income in the second quarter of 2010 was $65.6 million, a
decrease of 14.3% from the $76.5 million of net investment income in the
second quarter of 2009. For the six months ended June 30, 2010, net
investment income was $134.5 million, a decrease of 12.9% from the $154.4
million of net investment income in the first six months of 2009. These
decreases were primarily the result of lower reinvestment yields on our fixed
maturity securities and an increased allocation to hedge funds, which
contribute to our total return but carry no current yield. Annualized book
yield for the second quarter of 2010 was 3.6%, versus the annualized book
yield of 4.4% in the second quarter of 2009.
The company recorded net realized investment gains of $94.9 million and
$172.4 million for the three and six months ended June 30, 2010. As of June
30, 2010 and December 31, 2009, net accumulated unrealized gains were $138.2
million and $149.8 million, respectively.
Shareholders' Equity
As of June 30, 2010, our total shareholders' equity was $3.5 billion, a
7.9% increase compared to $3.2 billion as of December 31, 2009, primarily
driven by strong investment returns.
The company's annualized net income return on average shareholders'
equity for the three and six months ended June 30, 2010 was 22.5% and 19.9%,
respectively. The company's annualized operating return on average
shareholders' equity for the three and six months ended June 30, 2010 was
11.7% and 9.8%, respectively.
Share Repurchase Program
As of June 30, 2010, diluted book value per share was $65.18, an increase
of 9.4% compared to $59.56 as of December 31, 2009. During the second quarter
of 2010, the company announced a $500 million share repurchase program and,
for the quarter, repurchased 1,081,041 of its common shares in the open
market at an average repurchase price of $45.41 per share for an aggregate
cost of $49.1 million.
Quarterly Dividend
Allied World announced today that its Board of Directors has declared a
quarterly dividend of $0.20 per common share. The dividend will be payable on
September 9, 2010 to shareholders of record on August 24, 2010.
Investment Supplement
Allied World will be providing additional information on its investment
portfolio as of June 30, 2010. This information will be available at the
"Investor Relations" section of the company's website at www.awac.com.
Financial Supplement
A financial supplement relating to the second quarter of 2010 will be
available at the "Investor Relations" section of the company's website at
www.awac.com.
Conference Call
Allied World will host a conference call on Friday, August 6, 2010 at
8:00 a.m. (Eastern Time) to discuss the second quarter 2010 financial
results. The public may access a live webcast of the conference call at the
"Investor Relations" section of the company's website at www.awac.com.
In addition, the conference call can be accessed by dialing +1-866-843-0890
(U.S. and Canada callers) or +1-412-317-9250 (international callers) and
entering the passcode 7313881 approximately ten minutes prior to the call.
Following the conclusion of the presentation, a replay of the call will
be available through Friday, August 20, 2010 by dialing +1-877-344-7529 (U.S.
and Canada callers) or +1-412-317-0088 (international callers) and entering
the passcode 442249. In addition, the webcast will remain available online
through Friday, August 20, 2010 at www.awac.com.
Non-GAAP Financial Measures
In presenting the company's results, management has included and
discussed in this press release certain non generally accepted accounting
principles ("non-GAAP") financial measures within the meaning of Regulation G
as promulgated by the U.S. Securities and Exchange Commission. Management
believes that these non-GAAP measures, which may be defined differently by
other companies, better explain the company's results of operations in a
manner that allows for a more complete understanding of the underlying trends
in the company's business. However, these measures should not be viewed as a
substitute for those determined in accordance with generally accepted
accounting principles ("U.S. GAAP").
"Operating income" is an internal performance measure used in the
management of the company's operations and represents after-tax operational
results excluding, as applicable, net realized investment gains or losses,
net impairment charges recognized in earnings, impairment of intangible
assets and foreign exchange gain or loss. The company excludes net realized
investment gains or losses, net impairment charges recognized in earnings and
net foreign exchange gain or loss from the calculation of operating income
because the amount of these gains or losses is heavily influenced by and
fluctuates in part according to the availability of market opportunities and
other factors. The company excludes impairment of intangible assets as these
are non-recurring charges. The company believes these amounts are largely
independent of our business and underwriting process and including them
distorts the analysis of trends in operations. In addition to presenting net
income determined in accordance with U.S. GAAP, the company believes that
showing operating income enables investors, analysts, rating agencies and
other users of the company's financial information to more easily analyze our
results of operations in a manner similar to how management analyzes
underlying business performance. Operating income should not be viewed as a
substitute for U.S. GAAP net income.
The company has included "diluted book value per share" because it takes
into account the effect of dilutive securities; therefore, the company
believes it is an important measure of calculating shareholder returns.
"Annualized net income return on average shareholders' equity" ("ROAE")
is calculated using average shareholders' equity, excluding the average after
tax unrealized gains (or losses) on investments. Unrealized gains (losses) on
investments are primarily the result of interest rate and risk premium
movements and the resultant impact on fixed income securities. Such gains
(losses) are not related to management actions or operational performance,
nor are they likely to be realized. Therefore, the company believes that
excluding these unrealized gains (losses) provides a more consistent and
useful measurement of operating performance, which supplements GAAP
information. In calculating ROAE, the net income (loss) available to
shareholders for the period is multiplied by the number of such periods in a
calendar year in order to arrive at annualized net income (loss) available to
shareholders. The company presents ROAE as a measure that is commonly
recognized as a standard of performance by investors, analysts, rating
agencies and other users of its financial information.
"Annualized operating return on average shareholders' equity" is
calculated using operating income (as defined above and annualized in the
manner described for net income (loss) available to shareholders under ROAE
above), and average shareholders' equity, excluding the average after tax
unrealized gains (losses) on investments. Unrealized gains (losses) are
excluded from equity for the reasons outlined in the annualized net income
return on average shareholders' equity explanation above.
Reconciliations of these financial measures to their most directly
comparable GAAP measures are included in the attached tables.
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.
ALLIED WORLD ASSURANCE COMPANY HOLDINGS, LTD
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Expressed in thousands of United States dollars, except share and
per share amounts)
Quarter Ended June 30,
2010 2009
---- ----
Revenues:
Gross premiums written $493,847 $492,782
Premiums ceded (124,052) (131,344)
-------- --------
Net premiums written 369,795 361,438
Change in unearned premiums (30,871) (27,770)
------- -------
Net premiums earned 338,924 333,668
Net investment income 65,594 76,537
Net realized investment gains 94,933 5,093
Net impairment charges recognized in
earnings - (5,474)
Other income 616 369
--- ---
Total revenue 500,067 410,193
------- -------
Expenses:
Net losses and loss expenses 188,722 177,719
Acquisition costs 37,938 36,963
General and administrative expenses 68,089 61,495
Amortization and impairment of
intangible assets 891 1,065
Interest expense 9,531 9,522
Foreign exchange loss (gain) 559 (1,222)
--- ------
Total expenses 305,730 285,542
------- -------
Income before income taxes 194,337 124,651
Income tax expense 10,378 10,981
------ ------
NET INCOME $183,959 $113,670
======== ========
PER SHARE DATA:
Basic earnings per share $3.66 $2.30
Diluted earnings per share $3.47 $2.22
Weighted average common shares
outstanding 50,222,974 49,523,459
Weighted average common shares and
common share equivalents outstanding 52,974,410 51,257,887
Dividends declared per share $0.20 $0.18
Six Months Ended June 30,
2010 2009
---- ----
Revenues:
Gross premiums written $998,010 $972,379
Premiums ceded (194,923) (205,903)
-------- --------
Net premiums written 803,087 766,476
Change in unearned premiums (125,839) (108,836)
-------- --------
Net premiums earned 677,248 657,640
Net investment income 134,496 154,391
Net realized investment gains 172,420 41,695
Net impairment charges recognized in
earnings (168) (47,437)
Other income 913 835
--- ---
Total revenue 984,909 807,124
------- -------
Expenses:
Net losses and loss expenses 420,876 326,216
Acquisition costs 78,722 74,091
General and administrative expenses 131,552 118,860
Amortization and impairment of
intangible assets 1,783 2,130
Interest expense 19,059 19,969
Foreign exchange loss (gain) 1,635 (387)
----- ----
Total expenses 653,627 540,879
------- -------
Income before income taxes 331,282 266,245
Income tax expense 13,583 21,167
------ ------
NET INCOME $317,699 $245,078
======== ========
PER SHARE DATA:
Basic earnings per share $6.34 $4.96
Diluted earnings per share $5.98 $4.79
Weighted average common shares
outstanding 50,123,945 49,386,549
Weighted average common shares and
common share equivalents outstanding 53,086,708 51,215,808
Dividends declared per share $0.40 $0.36
ALLIED WORLD ASSURANCE COMPANY HOLDINGS, LTD
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(Expressed in thousands of United States dollars, except share and
per share amounts)
As of
June 30,
2010
----
ASSETS:
Fixed maturity investments available for sale, at
fair value (amortized cost: 2010: $2,602,000;
2009: $4,260,844) $2,755,934
Fixed maturity investments trading, at fair value 4,275,893
Other invested assets trading, at fair value 388,761
-------
Total investments 7,420,588
Cash and cash equivalents 543,895
Insurance balances receivable 552,330
Prepaid reinsurance 202,107
Reinsurance recoverable 932,435
Accrued investment income 46,105
Net deferred acquisition costs 103,286
Goodwill 268,376
Intangible assets 58,576
Net balances receivable on purchases and sales of
investments -
Net deferred tax assets 14,170
Other assets 48,182
Total assets $10,190,050
-----------
LIABILITIES:
Reserve for losses and loss expenses $4,920,435
Unearned premiums 1,069,956
Reinsurance balances payable 137,790
Net balances payable on purchases and sales of
investments 26,107
Senior notes 498,984
Accounts payable and accrued liabilities 68,235
Total liabilities $6,721,507
----------
SHAREHOLDERS' EQUITY:
Common shares, par value $0.03 per share (2010:
50,488,342; 2009: 49,734,487 shares issued and
2010: 49,407,301; 2009: 49,734,487 shares
outstanding) $1,515
Additional paid-in capital 1,378,262
Treasury shares, at cost (2010: 1,081,041, 2009:
nil) (49,089)
Retained earnings 1,999,610
Accumulated other comprehensive income, net of tax 138,245
-------
Total shareholders' equity $3,468,543
----------
Total liabilities and shareholders' equity $10,190,050
===========
As of
December 31,
2009
----
ASSETS:
Fixed maturity investments available for sale, at
fair value (amortized cost: 2010: $2,602,000;
2009: $4,260,844) $4,427,072
Fixed maturity investments trading, at fair value 2,544,322
Other invested assets trading, at fair value 184,869
-------
Total investments 7,156,263
Cash and cash equivalents 379,751
Insurance balances receivable 395,621
Prepaid reinsurance 186,610
Reinsurance recoverable 919,991
Accrued investment income 53,046
Net deferred acquisition costs 87,821
Goodwill 268,376
Intangible assets 60,359
Net balances receivable on purchases and sales of
investments 184
Net deferred tax assets 21,895
Other assets 67,566
Total assets $9,597,483
----------
LIABILITIES:
Reserve for losses and loss expenses $4,761,772
Unearned premiums 928,619
Reinsurance balances payable 102,837
Net balances payable on purchases and sales of
investments -
Senior notes 498,919
Accounts payable and accrued liabilities 92,041
Total liabilities $6,384,188
----------
SHAREHOLDERS' EQUITY:
Common shares, par value $0.03 per share (2010:
50,488,342; 2009: 49,734,487 shares issued and
2010: 49,407,301; 2009: 49,734,487 shares
outstanding) $1,492
Additional paid-in capital 1,359,934
Treasury shares, at cost (2010: 1,081,041, 2009:
nil) -
Retained earnings 1,702,020
Accumulated other comprehensive income, net of tax 149,849
-------
Total shareholders' equity $3,213,295
----------
Total liabilities and shareholders' equity $9,597,483
==========
ALLIED WORLD ASSURANCE COMPANY HOLDINGS, LTD
UNAUDITED CONSOLIDATED SEGMENT DATA
(Expressed in thousands of United States dollars, except for ratio
information)
U.S. International
Quarter Ended
June 30, 2010 Insurance Insurance Reinsurance Total
------------------ --------- --------- ----------- -----
Gross premiums
written $189,663 $167,601 $136,583 $493,847
Net premiums written 135,238 98,509 136,048 369,795
Net premiums earned 125,659 89,427 123,838 338,924
Other income 616 - - 616
Net losses and loss
expenses (69,198) (64,580) (54,944) (188,722)
Acquisition costs (15,854) 66 (22,150) (37,938)
General and
administrative
expenses (30,683) (22,657) (14,749) (68,089)
------- ------- ------- -------
Underwriting income 10,540 2,256 31,995 44,791
Net investment income 65,594
Net realized
investment gains 94,933
Net impairment
charges recognized
in earnings -
Amortization and
impairment of
intangible assets (891)
Interest expense (9,531)
Foreign exchange loss (559)
----
Income before income
taxes $194,337
========
GAAP Ratios:
Loss and loss expense
ratio 55.1% 72.2% 44.4% 55.7%
Acquisition cost
ratio 12.6% (0.1%) 17.9% 11.2%
General and
administrative
expense ratio 24.4% 25.3% 11.9% 20.1%
Combined ratio 92.1% 97.4% 74.2% 87.0%
==== ==== ==== ====
U.S. International
Quarter Ended
June 30, 2009 Insurance Insurance Reinsurance Total
------------------ --------- --------- ----------- -----
Gross premiums
written $182,712 $191,985 $118,085 $492,782
Net premiums written 127,469 116,170 117,799 361,438
Net premiums earned 111,025 111,807 110,836 333,668
Other income 369 - - 369
Net losses and loss
expenses (46,842) (74,101) (56,776) (177,719)
Acquisition costs (13,543) (1,667) (21,753) (36,963)
General and
administrative
expenses (29,996) (19,914) (11,585) (61,495)
------- ------- ------- -------
Underwriting income 21,013 16,125 20,722 57,860
Net investment income 76,537
Net realized
investment gains 5,093
Net impairment
charges recognized
in earnings (5,474)
Amortization and
impairment of
intangible assets (1,065)
Interest expense (9,522)
Foreign exchange gain 1,222
-----
Income before income
taxes $124,651
========
GAAP Ratios:
Loss and loss expense
ratio 42.2% 66.3% 51.2% 53.3%
Acquisition cost
ratio 12.2% 1.5% 19.6% 11.1%
General and
administrative
expense ratio 27.0% 17.8% 10.5% 18.4%
---- ---- ---- ----
Combined ratio 81.4% 85.6% 81.3% 82.8%
==== ==== ==== ====
ALLIED WORLD ASSURANCE COMPANY HOLDINGS, LTD
UNAUDITED CONSOLIDATED SEGMENT DATA
(Expressed in thousands of United States dollars, except for ratio
information)
U.S. International
Six Months Ended
June 30, 2010 Insurance Insurance Reinsurance Total
---------------- --------- --------- ----------- -----
Gross premiums
written $351,748 $289,023 $357,239 $998,010
Net premiums
written 266,793 179,590 356,704 803,087
Net premiums earned 254,864 176,470 245,914 677,248
Other income 913 - - 913
Net losses and loss
expenses (167,623) (122,029) (131,224) (420,876)
Acquisition costs (32,814) - (45,908) (78,722)
General and
administrative
expenses (57,797) (44,502) (29,253) (131,552)
------- ------- ------- --------
Underwriting (loss)
income (2,457) 9,939 39,529 47,011
Net investment
income 134,496
Net realized
investment gains 172,420
Net impairment
charges recognized
in earnings (168)
Amortization and
impairment of
intangible assets (1,783)
Interest expense (19,059)
Foreign exchange
loss (1,635)
------
Income before
income taxes $331,282
========
GAAP Ratios:
Loss and loss
expense ratio 65.8% 69.1% 53.4% 62.1%
Acquisition cost
ratio 12.9% 0.0% 18.7% 11.6%
General and
administrative
expense ratio 22.7% 25.2% 11.9% 19.4%
Combined ratio 101.4% 94.3% 84.0% 93.1%
===== ==== ==== ====
U.S. International
Six Months Ended
June 30, 2009 Insurance Insurance Reinsurance Total
---------------- --------- --------- ----------- -----
Gross premiums
written $336,081 $317,904 $318,394 $972,379
Net premiums
written 243,313 205,127 318,036 766,476
Net premiums earned 216,292 223,001 218,347 657,640
Other income 835 - - 835
Net losses and loss
expenses (101,019) (113,294) (111,903) (326,216)
Acquisition costs (27,954) (2,727) (43,410) (74,091)
General and
administrative
expenses (57,395) (38,733) (22,732) (118,860)
------- ------- ------- --------
Underwriting income 30,759 68,247 40,302 139,308
Net investment
income 154,391
Net realized
investment gains 41,695
Net impairment
charges recognized
in earnings (47,437)
Amortization and
impairment of
intangible assets (2,130)
Interest expense (19,969)
Foreign exchange
gain 387
---
Income before
income taxes $266,245
========
GAAP Ratios:
Loss and loss
expense ratio 46.7% 50.8% 51.3% 49.6%
Acquisition cost
ratio 12.9% 1.2% 19.9% 11.3%
General and
administrative
expense ratio 26.5% 17.4% 10.4% 18.1%
---- ---- ---- ----
Combined ratio 86.1% 69.4% 81.6% 79.0%
==== ==== ==== ====
ALLIED WORLD ASSURANCE COMPANY HOLDINGS, LTD
UNAUDITED OPERATING INCOME RECONCILIATION
(Expressed in thousands of United States dollars, except share and
per share amounts)
Quarter Ended June 30,
2010 2009
---- ----
Net income $183,959 $113,670
Add after tax affect of:
Net realized investment gains (88,850) (5,093)
Net impairment charges
recognized in earnings - 5,474
Foreign exchange loss/(gain) 559 (1,222)
--- ------
Operating income $95,668 $112,829
======= ========
Weighted average common shares
outstanding:
Basic 50,222,974 49,523,459
Diluted 52,974,410 51,257,887
Basic per share data:
Net income $3.66 $2.30
Add after tax affect of:
Net realized investment gains (1.77) (0.10)
Net impairment charges
recognized in earnings - 0.11
Foreign exchange loss/(gain) 0.01 (0.03)
---- -----
Operating income $1.90 $2.28
===== =====
Diluted per share data
Net income $3.47 $2.22
Add after tax affect of:
Net realized investment gains (1.68) (0.10)
Net impairment charges
recognized in earnings - 0.11
Foreign exchange loss/(gain) 0.01 (0.03)
---- -----
Operating income $1.80 $2.20
===== =====
Six Months Ended June 30
2010 2009
---- ----
Net income $317,699 $245,078
Add after tax affect of:
Net realized investment gains (162,452) (41,695)
Net impairment charges
recognized in earnings 109 47,437
Foreign exchange loss/(gain) 1,635 (387)
----- ----
Operating income $156,991 $250,433
======== ========
Weighted average common shares
outstanding:
Basic 50,123,945 49,386,549
Diluted 53,086,708 51,215,808
Basic per share data:
Net income $6.34 $4.96
Add after tax affect of:
Net realized investment gains (3.24) (0.84)
Net impairment charges
recognized in earnings - 0.96
Foreign exchange loss/(gain) 0.03 (0.01)
---- -----
Operating income $3.13 $5.07
===== =====
Diluted per share data
Net income $5.98 $4.79
Add after tax affect of:
Net realized investment gains (3.05) (0.81)
Net impairment charges
recognized in earnings - 0.92
Foreign exchange loss/(gain) 0.03 (0.01)
---- -----
Operating income $2.96 $4.89
===== =====
ALLIED WORLD ASSURANCE COMPANY HOLDINGS, LTD
UNAUDITED DILUTED BOOK VALUE PER SHARE RECONCILIATION
(Expressed in thousands of United States dollars, except share and
per share amounts)
As of As of As of
June 30 December 31, June 30
2010 2009 2009
---- ---- ----
Price per share at period end $45.38 $46.07 $40.83
Total shareholders' equity 3,468,543 3,213,295 2,741,427
Basic common shares outstanding 49,407,301 49,734,487 49,524,492
Add: unvested restricted share
units 804,644 915,432 947,180
Add: Performance based equity
awards 1,409,984 1,583,237 1,329,661
Add: dilutive options/warrants
outstanding 6,667,941 6,805,157 6,569,616
Weighted average exercise price
per share $34.52 $34.44 $33.70
Deduct: options bought back via
treasury method (5,072,455) (5,087,405) (5,423,031)
---------- ---------- ----------
Common shares and common share
equivalents outstanding 53,217,415 53,950,908 52,947,918
Basic book value per common share $70.20 $64.61 $55.35
Diluted book value per common
share $65.18 $59.56 $51.78
ALLIED WORLD ASSURANCE COMPANY HOLDINGS, LTD
UNAUDITED ANNUALIZED RETURN ON SHAREHOLDERS' EQUITY RECONCILIATION
(Expressed in thousands of United States dollars, except for
percentage information)
Quarter Ended June 30,
2010 2009
---- ----
Opening shareholders' equity $3,338,807 $2,491,860
Deduct: accumulated other comprehensive
income (142,284) (48,204)
-------- -------
Adjusted opening shareholders' equity 3,196,523 2,443,656
Closing shareholders' equity $3,468,543 $2,741,427
Deduct: accumulated other comprehensive
income (138,245) (48,669)
-------- -------
Adjusted closing shareholders' equity 3,330,298 2,692,758
Average shareholders' equity $3,263,411 $2,568,207
========== ==========
Net income available to shareholders $183,959 $113,670
Annualized net income available to
shareholders 735,836 454,680
Annualized return on average shareholders'
equity -net income available to
shareholders 22.5% 17.7%
==== ====
Operating income available to shareholders $95,668 $112,829
Annualized operating income available to
shareholders 382,672 451,316
Annualized return on average shareholders'
equity -operating income available to
shareholders 11.7% 17.6%
==== ====
Six Months Ended June 30,
2010 2009
---- ----
Opening shareholders' equity $3,213,295 $2,416,862
Deduct: accumulated other comprehensive
income (149,849) (105,632)
-------- --------
Adjusted opening shareholders' equity 3,063,446 2,311,230
Closing shareholders' equity $3,468,543 $2,741,427
Deduct: accumulated other comprehensive
income (138,245) (48,669)
-------- -------
Adjusted closing shareholders' equity 3,330,298 2,692,758
Average shareholders' equity $3,196,872 $2,501,994
========== ==========
Net income available to shareholders $317,699 $245,078
Annualized net income available to
shareholders 635,398 490,156
Annualized return on average shareholders'
equity -net income available to
shareholders 19.9% 19.6%
==== ====
Operating income available to shareholders $156,991 $250,433
Annualized operating income available to
shareholders 313,982 500,866
Annualized return on average shareholders'
equity -operating income available to
shareholders 9.8% 20.0%
=== ====
Website: www.awac.com
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, both of Allied World Assurance Company Holdings, Ltd
Tags: Allied World Assurance Company Holdings Ltd, August 5, Bermuda, England, Pembroke
