Allied World Assurance Company Prices Initial Public Offering at $34.00 Per Share

Allied World Assurance Company Holdings, Ltd announced
today that its initial public offering of 8,800,000 common shares are
priced at $34.00 per share. The shares are scheduled to begin trading
tomorrow on the New York Stock Exchange under the ticker symbol "AWH."
Goldman, Sachs & Co. is the book-running manager for this offering
and the representative of the underwriters. The offering's
underwriters will have a 30-day option to purchase up to 1,320,000
additional common shares.
The net proceeds from the offering will be used to repay a portion
of the Company's bank loan and for general corporate purposes.
A registration statement relating to these securities has been
filed with and declared effective by the U.S. Securities and Exchange
Commission. This press release shall not constitute an offer to sell
or a solicitation of an offer to buy, nor shall there be any sale of
these securities in any state or jurisdiction in which such offer,
solicitation or sale would be unlawful prior to registration or
qualification under the securities laws of any such state or
jurisdiction. The offering will be made only by means of a written
prospectus forming part of the effective registration statement.
Copies of the final prospectus relating to this offering may be
obtained, when available, by contacting: Goldman, Sachs & Co.,
Attention: Prospectus Department, 85 Broad Street, New York, NY 10004,
or by calling 1-866-471-2526.

About Allied World Assurance

Allied World Assurance Company Holdings, Ltd, founded in November
2001, is one of Bermuda's leading property and casualty insurers. The
company, through its operating subsidiaries, offers property and
casualty insurance and reinsurance on a worldwide basis. The principal
operating companies of Allied World Assurance Company Holdings, Ltd
have A (Excellent) ratings from A.M. Best Company.

Forward-Looking Statements

This press release may contain forward-looking statements within
the meaning of The Private Securities Litigation Reform Act of 1995
that involve inherent risks and uncertainties. Statements that are not
historical facts, including statements that use terms such as
"believes," "anticipates," "intends" or "expects" and that relate to
our plans and objectives for future operations, are forward-looking
statements. In light of the risks and uncertainties inherent in all
forward-looking statements, the inclusion of such statements in this
press release should not be considered as a representation by us or
any other person that our objectives or plans will be achieved. These
statements are based on current plans, estimates and expectations.
Actual results may differ materially from those projected in such
forward-looking statements and therefore you should not place undue
reliance on them. A non-exclusive list of the important factors that
could cause actual results to differ materially from those in such
forward-looking statements includes the following: (a) the effects of
competitors' pricing policies, and of changes in laws and regulations
on competition, including industry consolidation and development of
competing financial products; (b) the effects of investigations into
market practices, in particular insurance brokerage practices,
together with any legal or regulatory proceedings, related settlements
and industry reform or other changes arising therefrom; (c) the impact
of acts of terrorism and acts of war; (d) greater frequency or
severity of claims and loss activity, including as a result of natural
or man-made catastrophic events, than our underwriting, reserving or
investment practices have anticipated; (e) increased competition due
to an increase in capacity of property and casualty insurers or
reinsurers; (f) the inability to obtain or maintain financial strength
ratings by one or more of the company's subsidiaries; (g) the adequacy
of our loss reserves and the need to adjust such reserves as claims
develop over time; (h) the company or one of its subsidiaries becoming
subject to significant income taxes in the United States or elsewhere;
(i) changes in regulations or tax laws applicable to the company, its
subsidiaries, brokers or customers; (j) changes in the availability,
cost or quality of reinsurance or retrocessional coverage; (k) loss of
key personnel; (l) changes in general economic conditions, including
inflation, foreign currency exchange rates, interest rates and other
factors that could affect the company's investment portfolio; and (m)
such other risk factors as may be discussed in the final prospectus
relating to this offering and subsequent reports filed with the
Securities and Exchange Commission. We undertake no obligation to
publicly update or revise any forward-looking statement, whether as a
result of new information, future developments or otherwise.