PEMBROKE, Bermuda, November 6, 2010 - Allied World Assurance Company Holdings, Ltd (NYSE: AWH) today reported
that the company has entered into an agreement to repurchase the remainder of
its securities held by certain GS Capital Partners and other investment
funds, which are affiliates of The Goldman Sachs Group, Inc. and founding
shareholders of Allied World. These securities consist of 3,159,793 common
shares and warrants to purchase an additional 1,500,000 common shares. The
aggregate repurchase price for these securities will be US$222.6 million, of
which US$185.4 million will be for the repurchase of the common shares and
US$37.2 million will be for the repurchase of the warrants. The repurchase
price per common share is based on and reflects a 0.5% discount from the
volume-weighted average trading price of the company's common shares on
November 5, 2010. The repurchase price per common share underlying the
warrants is equal to the volume-weighted average trading price of the
company's common shares on November 5, 2010, less the exercise price for such
warrants, which is US$34.20 per share, plus US$0.01 per share. The repurchase
of the common shares represents approximately 7.5% of the total common shares
outstanding as of September 30, 2010.