Allied World's Board Declares Quarterly Shareholder Dividend of US$0.20 Per Common Share

PEMBROKE, Bermuda, February 23, 2010 - Allied World Assurance Company Holdings, Ltd (NYSE: AWH) today announced
that its board of directors has declared a quarterly dividend of US$0.20 per
common share. The dividend will be payable on April 1, 2010 to shareholders
of record as of the close of business on March 16, 2010.

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 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.

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