Allied World Posts $469 Million 2007 Net Income; Q4 $123 Million

Bermuda-based Allied World Assurance Company Holdings, Ltd. reported net income of $123 million, or $2.01 per diluted share, for the fourth quarter 2007 compared to net income of $128.4 million, or $2.04 per diluted share, for the fourth quarter 2006.

Net income for the year ended December 31, 2007 was a record $469.2 million, or $7.53 per diluted share, compared to net income of $442.8 million, or $7.75 per diluted share, for the year ended December 31, 2006.

Allied World reported operating income, which excludes capital gains/losses, of $118.1 million, or $1.93 per diluted share, for the fourth quarter 2007 compared to operating income of $133.6 million, or $2.12 per diluted share, for the fourth quarter 2006.

Operating income for the year ended December 31, 2007 was a record $476.0 million, or $7.64 per diluted share, compared to operating income of $472.1 million, or $8.27 per diluted share, for the year ended December 31, 2006.

“The decrease in diluted earnings per share amounts for the year over year comparison reflects the increase in the weighted average common shares outstanding resulting primarily from the company’s initial public offering in July 2006,” the bulletin explained.

The company’s annualized net income return on average equity for the quarter and year ended December 31, 2007 was 21.1 percent and 21.7 percent, respectively. The company’s annualized operating return on average equity (ROE) for the quarter and year ended December 31, 2007 was 20.3 percent and 22.1 percent, respectively.

President and CEO Scott Carmilani commented: “Our disciplined underwriting continues to be supported by significant investment returns and our strong balance sheet. Collectively, these factors resulted in our generating an impressive operating income ROE of 22 percent for 2007 despite the challenging market conditions. Additionally, our diluted book value per share grew by over 20 percent during the year even as we acquired Allied World stock from one of our founding shareholders.”

The full report and a replay of the earnings conference call may be obtained on the Company’s web site at: www.awac.com.

Source: Allied World