Allied World Assurance Company Holdings Reports Operating Results (10-Q)

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Aug 03, 2012
Allied World Assurance Company Holdings (AWH, Financial) filed Quarterly Report for the period ended 2012-06-30.

Allied World Assurance Co Holdings, Ag. has a market cap of $2.75 billion; its shares were traded at around $78.8 with a P/E ratio of 9.4 and P/S ratio of 1.6. The dividend yield of Allied World Assurance Co Holdings, Ag. stocks is 2%. Allied World Assurance Co Holdings, Ag. had an annual average earning growth of 8.5% over the past 5 years.

Highlight of Business Operations:

Net premiums earned increased by $54.9 million, or 42.4%, as a result of the increase in net premiums written during the year ended December 31, 2011 and the six months ended June 30, 2012. Premiums related to our reinsurance business earn at a slower rate than those related to our direct insurance business. Direct insurance premiums typically earn ratably over the term of a policy. Reinsurance premiums under a quota share reinsurance contract are typically earned over the same period as the underlying policies, or risks, covered by the contract. As a result, the earning pattern of a quota share reinsurance contract may extend up to 24 months, reflecting the inception dates of the underlying policies. Property catastrophe premiums, crop reinsurance premiums and premiums for other treaties written on a losses occurring basis generally earn ratably over the term of the reinsurance contract.

Net premiums earned increased by $100.4 million, or 39.7%, as a result of the increase in net premiums written during the year ended December 31, 2011 and the six months ended June 30, 2012. Premiums related to our reinsurance business earn at a slower rate than those related to our direct insurance business. Direct insurance premiums typically earn ratably over the term of a policy. Reinsurance premiums under a quota share reinsurance contract are typically earned over the same period as the underlying policies, or risks, covered by the contract. As a result, the earning pattern of a quota share reinsurance contract may extend up to 24 months, reflecting the inception dates of the underlying policies. Property catastrophe premiums and premiums for other treaties written on a losses occurring basis generally earn ratably over the term of the reinsurance contract.

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