OREANDA-NEWS. October 22, 2015. Allied World Assurance Company Holdings, AG (NYSE:AWH) today reported a net loss of \\$51.6 million, or \\$0.57per share, for the third quarter of 2015 compared to net income of \\$30.9 million, or \\$0.31 per diluted share, for the third quarter of 2014.

The company reported operating income of \\$51.4 million, or \\$0.55 per diluted share, for the third quarter of 2015, compared to operating income of \\$60.6 million, or \\$0.61 per diluted share, for the third quarter of 2014.

"Despite a challenging investment environment and a large event loss, we believe we are well positioned to create shareholder value,” commented President and Chief Executive Officer Scott Carmilani. “We continue to be excited about the attractive platform we have built over the last few years."

Third Quarter Summary (Unaudited)

(Expressed in millions of U.S. dollars, except per share amounts) Three Months Ended September 30,
Diluted per share
2015 2014 2015 2014
Net (loss) income

\\$

(51.6

) \\$ 30.9

\\$

(0.56

)*

\\$ 0.31
Add after tax effect of:
Net realized investment losses 103.8 29.4 1.12 0.30
Foreign exchange (gain) loss (0.8 ) 0.3 (0.01 ) 0.00
Operating income

\\$

51.4

\\$ 60.6 \\$ 0.55 \\$ 0.61
* Diluted weighted average common shares outstanding were only used in the calculation of diluted operating income per share, and not in the calculation of diluted earnings per share as there was a net loss during the three months ended September 30, 2015.

Third Quarter Operating Results

  • Gross premiums written were \\$754.1 million, a 6.5% increase compared to \\$707.9 million in the third quarter of 2014.
    • The Global Markets Insurance segment grew over 100% driven by the inclusion of the acquired Asian operations and 10.0% excluding the impact of the acquired Asian operations.
    • The North American Insurance segment decreased 1.4% led by decreases in various lines including healthcare and property. Partially offsetting this was growth in programs and specialty and other.
    • The Reinsurance segment decreased 9.0% driven by the non-renewal of several casualty and property treaties.
  • Net premiums written were \\$607.0 million, a 6.7% increase compared to \\$568.7 million in the third quarter of 2014.
  • Net premiums earned were \\$650.7 million, a 20.1% increase compared to \\$541.7 million in the third quarter of 2014.
  • Related to the explosions in the port of Tianjin, China, the company experienced \\$28.9 million of catastrophe losses, on a pre-tax basis and net of reinstatement premiums, for the third quarter of 2015. The net impact of the explosions on Allied World is based on loss reporting from impacted insureds, models and other information on the event. Of that \\$28.9 million, \\$25.9 million impacted the Reinsurance segment, \\$2.75 million impacted the North American Insurance segment, and \\$0.25 million impacted the Global Markets Insurance segment. This compares to catastrophe losses of \\$28.1 million, on a pre-tax basis and net of reinstatement premiums, for the third quarter of 2014 related to Hurricane Odile, Windstorm Ela, and PCS designated storm 45 in the Midwestern United States.
  • Underwriting income was \\$27.9 million compared to underwriting income of \\$45.0 million in the third quarter of 2014.
  • The combined ratio was 95.8% compared to 91.7% in the third quarter of 2014.
  • The loss and loss expense ratio was 64.1% in the third quarter of 2015 compared to 62.0% in the prior year quarter. During the third quarter of 2015, the company recorded net favorable reserve development on prior loss years of \\$8.6 million, a benefit of 1.3 percentage points to the loss and loss expense ratio, compared to \\$46.9 million a year ago, a benefit of 8.7 percentage points.
  • The company's expense ratio was 31.7% for the third quarter of 2015 compared to 29.7% for the third quarter of 2014, largely driven by higher acquisition costs related to the business mix of the acquired Asian operations.

Investment Results

  • The total financial statement return on the company's investment portfolio for the three months ended September 30, 2015 was (0.8)% compared to 0.1% for the three months ended September 30, 2014, and 0.5% for the nine months ended September 30, 2015 compared to 2.7% for the nine months ended September 30, 2014.
  • For the quarter, the decrease in total return was driven by \\$77.8 million of mark-to-market losses on investments, largely due to the performance of the equity portfolio amid recent market volatility.
  • Net investment income increased 5.2% compared to the prior year quarter as a result of contributions from the fixed income portfolio as well as higher returns from the hedge fund and private equity portfolios.
  • See the table below for the components of our investment returns:
(Expressed in millions of U.S. dollars, except percentages)

Three Months Ended
September 30,

2015 2014
Net investment income \\$ 45.6 \\$ 43.4
Net realized investment (losses) (113.6 ) (35.1 )
Total financial statement portfolio return \\$ (68.0 ) \\$ 8.3
Average invested assets \\$ 8,864.6 \\$ 8,841.0
Financial statement portfolio return

(0.8

)%

0.1

%

Note: Net investment income, realized gains and unrealized gains are disclosed on a pre-tax basis.

Shareholders' Equity

  • As of September 30, 2015, the company’s total shareholders' equity decreased to \\$3,555.4 million, compared to \\$3,778.3 million as of December 31, 2014.
  • As of September 30, 2015, diluted book value per share was \\$38.03, a decrease of 1.9% compared to \\$38.75 as of June 30, 2015, and a decrease of 0.6% compared to \\$38.27 as of December 31, 2014.

Capital Management

  • During the third quarter of 2015, the company did not repurchase any common shares.
  • In May 2015, the company’s shareholders approved four quarterly dividends equal to \\$0.26 per share. The first and second dividends were paid on July 2, 2015 and October 1, 2015, respectively.

Supplementary Information

Allied World will be providing both a Financial Supplement and an Investment Supplement as of September 30, 2015. This information will be available in the "Investor Relations" section of the company's website at www.awac.com.

Conference Call

Allied World will host a conference call on Thursday, October 22, 2015 at 9:00 a.m. (Eastern Time) to discuss the results for the third quarter ended September 30, 2015. 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 (888) 317-6003 (U.S. callers) or (412) 317-6061 (international callers) and entering the passcode 7962064 approximately ten minutes prior to the call.

Following the conclusion of the presentation, a replay of the call will be available through Thursday, November 5, 2015 by dialing (877) 344-7529 (U.S. callers) or (412) 317-0088 (international callers) and entering the passcode 10072282. In addition, the webcast will remain available online through Thursday, November 5, 2015 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 foreign exchange gain or loss, and other non-recurring items. The company excludes net realized investment gains or losses, net foreign exchange gain or loss, and other non-recurring items from the calculation of operating income because these amounts are heavily influenced by and fluctuate in part according to the availability of market opportunities and other factors. 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 and 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 return on average shareholders' equity" ("ROAE") is calculated using average shareholders’ equity, excluding the average after tax other comprehensive income or loss, which may include unrealized gains (losses) on investments and currency translation adjustments. Unrealized gains (losses) on investments are primarily the result of interest rate and credit spread 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 amounts provides a more consistent and useful measurement of operating performance, which supplements U.S. 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 return on average shareholders' equity explanation above.

Reconciliations of these financial measures to their most directly comparable U.S. GAAP measures are included in the attached tables.

About Allied World

Allied World Assurance Company Holdings, AG, through its subsidiaries and brand known as Allied World, is a global provider of innovative property, casualty and specialty insurance and reinsurance solutions. Allied World offers superior client service through a global network of offices and branches. All of Allied World's rated insurance and reinsurance subsidiaries are rated A by A.M. Best Company, A by Standard & Poor's, and A2 by Moody's, and our Lloyd's Syndicate 2232 is rated A+ by Standard & Poor's and AA- by Fitch.

Please visit the following for further information on Allied World: Web: www.awac.com | Facebook: www.facebook.com/alliedworld | LinkedIn: http://www.linkedin.com/company/Allied-World.

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 adequacy of our loss reserves; negative rating agency actions; greater frequency or severity of unpredictable catastrophic events; the impact of acts of terrorism and acts of war; 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, AG
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Expressed in thousands of United States dollars, except share and per share amounts)
Three Months Ended
September 30, 		Nine Months Ended
September 30,
2015 2014 2015 2014
Revenues:
Gross premiums written \\$ 754,062 \\$ 707,884 \\$ 2,460,646 \\$ 2,369,682
Premiums ceded (147,070 ) (139,142 ) (477,457 ) (475,402 )
Net premiums written 606,992 568,742 1,983,189 1,894,280
Change in unearned premiums 43,661 (27,005 ) (117,612 ) (285,011 )
Net premiums earned 650,653 541,737 1,865,577 1,609,269
Net investment income 45,667 43,412 132,978 127,824
Net realized investment (losses) gains (113,626 ) (35,136 ) (88,783 ) 104,286
Other income 735 1,032 2,513 1,032
Total revenues 583,429 551,045 1,912,285 1,842,411
Expenses:
Net losses and loss expenses 416,881 336,090 1,173,578 926,231
Acquisition costs 100,101 72,403 279,418 214,404
General and administrative expenses 105,798 88,294 311,299 264,822
Other expense 1,245 6,575 4,303 6,575
Amortization of intangible assets 2,639 633 6,091 1,900
Interest expense 14,469 14,325 43,272 43,451
Foreign exchange (gain) loss (793 ) 278 10,369 978
Total expenses 640,340 518,598 1,828,330 1,458,361
(Loss) income before income taxes (56,911 ) 32,447 83,955 384,050
Income tax (benefit) expense (5,281 ) 1,532 1,771 24,300
NET (LOSS) INCOME \\$ (51,630 ) \\$ 30,915 \\$ 82,184 \\$ 359,750
PER SHARE DATA:
Basic (loss) earnings per share \\$ (0.57 ) \\$ 0.32 \\$ 0.88 \\$ 3.67
Diluted (loss) earnings per share \\$ (0.57 ) \\$ 0.31 \\$ 0.87 \\$ 3.60
Weighted average common shares outstanding 90,882,511 96,458,231 93,068,088 97,926,378
Weighted average common shares and common share equivalents outstanding

92,440,277

*

98,444,238 94,724,980 99,965,296
Dividends paid per share (1) \\$ 0.26 \\$ 0.23 \\$ 0.71 \\$ 0.56
(1) A dividend of \\$0.26 per share was also paid on October 1, 2015 to shareholders of record on September 22, 2015.
* Diluted weighted average common shares outstanding were only used in the calculation of diluted operating income per share, and not in the calculation of diluted earnings per share as there was a net loss during the three months ended September 30, 2015.
ALLIED WORLD ASSURANCE COMPANY HOLDINGS, AG
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(Expressed in thousands of United States dollars, except share and per share amounts)
As of As of
September 30, December 31,
ASSETS: 2015 2014
Fixed maturity investments trading, at fair value \\$ 6,546,993 \\$ 6,069,010
Equity securities trading, at fair value 663,390 844,163
Other invested assets 969,427 955,509
Total investments 8,179,810 7,868,682
Cash and cash equivalents 763,673 670,310
Insurance balances receivable 905,401 664,815
Funds held 443,670 724,021
Prepaid reinsurance 387,269 360,732
Reinsurance recoverable 1,449,832 1,340,256
Reinsurance recoverable on paid losses 117,110 86,075
Accrued investment income 32,673 28,456
Net deferred acquisition costs 201,313 151,546
Goodwill 354,781 278,258
Intangible assets 130,612 46,298
Balances receivable on sale of investments 29,461 47,149
Net deferred tax assets 27,268 33,615
Other assets 174,706 121,350
Total assets \\$ 13,197,579 \\$ 12,421,563
LIABILITIES:
Reserve for losses and loss expenses \\$ 6,436,579 \\$ 5,881,165
Unearned premiums 1,835,527 1,555,313
Reinsurance balances payable 260,225 180,060
Balances due on purchases of investments 108,337 5,428
Senior notes 799,043 798,802
Other long-term debt 23,328 19,213
Dividends payable 23,637 21,669
Accounts payable and accrued liabilities 155,498 181,622
Total liabilities 9,642,174 8,643,272
SHAREHOLDERS' EQUITY:

Common shares: 2015 and 2014: par value CHF 4.10 per share (2015:95,523,230; 2014:

100,775,256 shares issued and 2015: 90,911,888; 2014: 96,195,482 shares outstanding)

386,702 408,020
Treasury shares, at cost (2015: 4,611,342; 2014: 4,579,774) (156,281 ) (143,075 )
Accumulated other comprehensive loss (4,265 ) 0
Retained earnings 3,329,249 3,513,346
Total shareholders' equity 3,555,405 3,778,291
Total liabilities and shareholders' equity \\$ 13,197,579 \\$ 12,421,563
ALLIED WORLD ASSURANCE COMPANY HOLDINGS, AG
UNAUDITED CONSOLIDATED SEGMENT DATA
(Expressed in thousands of United States dollars, except for ratio information)

North American

Global Markets

Three Months Ended September 30, 2015

Insurance Insurance

Reinsurance

Total

Gross premiums written \\$ 460,386 \\$ 132,664 \\$ 161,012 \\$ 754,062
Net premiums written 350,791 104,075 152,126 606,992
Net premiums earned 332,722 110,327 207,604 650,653
Net losses and loss expenses (222,250 ) (70,935 ) (123,696 ) (416,881 )
Acquisition costs (35,585 ) (22,731 ) (41,785 ) (100,101 )
General and administrative expenses (58,301 ) (29,344 ) (18,153 ) (105,798 )
Underwriting income (loss) 16,586 (12,683 ) 23,970 27,873
Other insurance-related revenues 735 — — 735
Other insurance-related expenses (631 ) (614 ) — (1,245 )
Segment income (loss) 16,690 (13,297 ) 23,970 27,363
Net investment income 45,667
Net realized investment losses (113,626 )
Amortization of intangible assets (2,639 )
Interest expense (14,469 )
Foreign exchange gain 793
Loss before income taxes \\$ (56,911 )
GAAP Ratios:
Loss and loss expense ratio

66.8

%

64.3

%

59.6 %

64.1

%

Acquisition cost ratio

10.7

%

20.6

%

20.1 %

15.4

%

General and administrative expense ratio

17.5

%

26.6

%

8.7 %

16.3

%

Expense ratio

28.2

%

47.2

%

28.8 %

31.7

%

Combined ratio

95.0

%

111.5

%

88.4 %

95.8

%

North American Global Markets
Three Months Ended September 30, 2014 Insurance Insurance Reinsurance Total
Gross premiums written \\$ 466,792 \\$ 64,125 \\$ 176,967 \\$ 707,884
Net premiums written 364,739 44,794 159,209 568,742
Net premiums earned 277,203 41,574 222,960 541,737
Net losses and loss expenses (180,682 ) (28,142 ) (127,266 ) (336,090 )
Acquisition costs (27,027 ) (5,313 ) (40,063 ) (72,403 )
General and administrative expenses (52,921 ) (16,802 ) (18,571 ) (88,294 )
Underwriting income (loss) 16,573 (8,683 ) 37,060 44,950
Other insurance-related revenues 1,032 — — 1,032
Other insurance-related expenses (1,270 ) (5,305 ) — (6,575 )
Segment income (loss) 16,335 (13,988 ) 37,060 39,407
Net investment income 43,412
Net realized investment losses (35,136 )
Amortization of intangible assets (633 )
Interest expense (14,325 )
Foreign exchange loss (278 )
Income before income taxes \\$ 32,447
GAAP Ratios:
Loss and loss expense ratio

65.2

%

67.7

%

57.1

%

62.0

%

Acquisition cost ratio

9.7

%

12.8

%

18.0

%

13.4

%

General and administrative expense ratio

19.1

%

40.4

%

8.3

%

16.3

%

Expense ratio

28.8

%

53.2

%

26.3

%

29.7

%

Combined ratio

94.0

%

120.9

%

83.4

%

91.7

%

ALLIED WORLD ASSURANCE COMPANY HOLDINGS, AG

UNAUDITED CONSOLIDATED SEGMENT DATA

(Expressed in thousands of United States dollars, except for ratio information)

North American

Global Markets

Nine Months Ended September 30, 2015

Insurance

Insurance

Reinsurance Total
Gross premiums written \\$ 1,358,636 \\$ 328,223 \\$ 773,787 \\$ 2,460,646
Net premiums written 1,019,866 216,230 747,093 1,983,189
Net premiums earned 974,232 262,993 628,352 1,865,577
Net losses and loss expenses (655,475 ) (157,200 ) (360,903 ) (1,173,578 )
Acquisition costs (100,818 ) (54,076 ) (124,524 ) (279,418 )
General and administrative expenses (175,732 ) (78,093 ) (57,474 ) (311,299 )
Underwriting income (loss) 42,207 (26,376 ) 85,451 101,282
Other insurance-related revenues 2,513 — — 2,513
Other insurance-related expenses (2,076 ) (2,227 ) — (4,303 )
Segment income (loss) 42,644 (28,603 ) 85,451 99,492
Net investment income 132,978
Net realized investment gains (88,783 )
Amortization of intangible assets (6,091 )
Interest expense (43,272 )
Foreign exchange loss (10,369 )
Income before income taxes \\$ 83,955
GAAP Ratios:
Loss and loss expense ratio

67.3

%

59.8

%

57.4

%

62.9

%

Acquisition cost ratio

10.3

%

20.6

%

19.8

%

15.0

%

General and administrative expense ratio

18.0

%

29.7

%

9.1

%

16.7

%

Expense ratio

28.3

%

50.3

%

28.9

%

31.7

%

Combined ratio

95.6

%

110.1

%

86.3

%

94.6

%

North American Global Markets
Nine Months Ended September 30, 2014 Insurance Insurance Reinsurance Total
Gross premiums written \\$ 1,285,044 \\$ 196,086 \\$ 888,552 \\$ 2,369,682
Net premiums written 905,279 126,574 862,427 1,894,280
Net premiums earned 808,453 114,584 686,232 1,609,269
Net losses and loss expenses (520,586 ) (35,204 ) (370,441 ) (926,231 )
Acquisition costs (76,531 ) (12,615 ) (125,258 ) (214,404 )
General and administrative expenses (159,063 ) (48,861 ) (56,898 ) (264,822 )
Underwriting income 52,273 17,904 133,635 203,812
Other insurance-related revenues 1,032 — — 1,032
Other insurance-related expenses

(1,270

)

(5,305) — (6,575)
Segment income 52,035 12,599 133,635 198,269
Net investment income 127,824
Net realized investment gains 104,286
Amortization of intangible assets (1,900 )
Interest expense (43,451 )
Foreign exchange loss (978 )
Income before income taxes \\$ 384,050
GAAP Ratios:
Loss and loss expense ratio

64.4

%

30.7

%

54.0

%

57.6

%

Acquisition cost ratio

9.5

%

11.0

%

18.3

%

13.3

%

General and administrative expense ratio

19.7

%

42.6

%

8.3

%

16.5

%

Expense ratio

29.2

%

53.6

%

26.6

%

29.8

%

Combined ratio

93.6

%

84.3

%

80.6

%

87.4

%

ALLIED WORLD ASSURANCE COMPANY HOLDINGS, AG
UNAUDITED OPERATING INCOME RECONCILIATION
(Expressed in thousands of United States dollars, except share and per share amounts)

Three Months Ended
September 30,

Nine Months Ended
September 30,

2015 2014 2015 2014
Net (loss) income \\$ (51,630 ) \\$ 30,915 \\$ 82,184 \\$ 359,750
Add after tax effect of:
Net realized investment losses (gains) 103,862 29,413 76,405 (94,192 )
Foreign exchange (gain) loss (793 ) 278 10,369 978
Operating income \\$ 51,439 \\$ 60,606 \\$ 168,486 \\$ 266,536
Weighted average common shares outstanding:
Basic 90,882,511 96,458,231 93,068,088 97,926,378
Diluted 92,440,277* 98,444,238 94,724,980 99,965,296
Basic per share data:
Net (loss) income \\$ (0.57 ) \\$ 0.32 \\$ 0.88 \\$ 3.67
Add after tax effect of:
Net realized investment losses (gains) 1.14 0.30 0.82 (0.96 )
Foreign exchange (gain) loss (0.01 ) 0.00 0.11 0.01
Operating income \\$ 0.56 \\$ 0.62 \\$ 1.81 \\$ 2.72
Diluted per share data:
Net (loss) income \\$ (0.56)* \\$ 0.31 \\$ 0.87 \\$ 3.60
Add after tax effect of:
Net realized investment losses (gains) 1.12 0.30 0.81 (0.94 )
Foreign exchange (gain) loss (0.01 ) 0.00 0.11 0.01
Operating income \\$ 0.55 \\$ 0.61 \\$ 1.79 \\$ 2.67
* Diluted weighted average common shares outstanding were only used in the calculation of diluted operating income per share, and not in the calculation of diluted earnings per share as there was a net loss during the three months ended September 30, 2015.
ALLIED WORLD ASSURANCE COMPANY HOLDINGS, AG
UNAUDITED DILUTED BOOK VALUE PER SHARE RECONCILIATION
(Expressed in thousands of United States dollars, except share and per share amounts)
As of As of
September 30, December 31,
2015 2014
Price per share at period end \\$ 38.17 \\$ 37.92
Total shareholders' equity \\$ 3,555,405 \\$ 3,778,291
Basic common shares outstanding 90,911,888 96,195,482
Add: unvested restricted share units 823,635 502,506
Add: performance based equity awards 591,683 616,641
Add: employee share purchase plan 32,515 42,176
Add: dilutive options outstanding 2,020,354 2,426,674
Weighted average exercise price per share \\$ 16.70 \\$ 16.41
Deduct: options bought back via treasury method (883,846 ) (1,050,151 )
Common shares and common share
equivalents outstanding 93,496,229 98,733,328
Basic book value per common share \\$ 39.11 \\$ 39.28
Diluted book value per common share \\$ 38.03 \\$ 38.27
Basic tangible book value per common share \\$ 33.77 \\$ 35.90
Diluted tangible book value per common share \\$ 32.84 \\$ 34.98
ALLIED WORLD ASSURANCE COMPANY HOLDINGS, AG
UNAUDITED ANNUALIZED RETURN ON SHAREHOLDERS' EQUITY RECONCILIATION
(Expressed in thousands of United States dollars, except for percentage information)
Three Months Ended September 30, Nine Months Ended September 30,
2015 2014 2015 2014
Opening shareholders' equity \\$ 3,624,801 \\$ 3,682,762 \\$ 3,778,291 \\$ 3,616,678
Add: accumulated other comprehensive loss 3,272 — — —
Adjusted opening shareholders' equity 3,628,073 3,682,762 3,778,291 3,616,678
Closing shareholders' equity \\$ 3,555,405 \\$ 3,673,599 \\$ 3,555,405 \\$ 3,673,599
Add: accumulated other comprehensive loss 4,265 — 4,265 —
Adjusted closing shareholders' equity 3,559,670 3,673,599 3,559,670 3,673,599
Average shareholders' equity \\$ 3,593,872 \\$ 3,678,181 \\$ 3,668,981 \\$ 3,645,139
Net (loss) income available to shareholders \\$ (51,630 ) \\$ 30,915 \\$ 82,184 \\$ 359,750
Annualized net (loss) income available to shareholders (206,520 ) 123,660 109,579 479,667
Annualized return on average shareholders' equity -
net (loss) income available to shareholders

(5.7

)%

3.4 % 3.0 % 13.2 %
Operating income available to shareholders \\$ 51,439 \\$ 60,606 \\$ 168,958 \\$ 266,536
Annualized operating income available to shareholders 205,756 242,424 225,277 355,381
Annualized return on average shareholders' equity -
operating income available to shareholders

5.7

%

6.6 % 6.1 % 9.7 %