PEMBROKE, Bermuda -

Allied World Assurance Company, Ltd, a member company of Allied World Assurance Company Holdings, Ltd (NYSE: AWH), today announced the launch by its Hong Kong branch office of a suite of excess of loss products developed specifically for the Asian marketplace: REFLEX, FLEXION and FLEXCESS (collectively the ‘Excess Suite’).

This Excess Suite is the first to market in a pipeline of innovative products, highlighting Allied World’s ongoing commitment to providing its producing partners and clients with comprehensive and tailored products. These products respond to contemporary issues, facilitate counter-party credit risk management for clients and assist with managing the risk of underlying insurer insolvency.

William Cotter, Senior Vice President, Asia, commented, “The Excess Suite represents the first distillation of our promise to add value to the Asian marketplace by helping clients to manage growing risks. We are addressing contemporary concerns, which have arisen directly and indirectly as a consequence of the global recession.”

Benjamin Howell, Vice President, Professional Lines, explains: “As a new market entrant we have listened to our partners and have produced a suite of products which address their most acute concerns and needs. The result is a range of products which offer unique placement structures. For example, the FLEXION product enables Allied World to provide additional protection from an excess position for coverage that has traditionally been sub-limited within a primary layer. FLEXCESS, on the other hand, assists in protecting underlying insurance layers against insurer insolvency.”

The Excess Suite products are available in excess of all Professional Lines Products with limits of up to US$25,000,000.

For more information on these new products, please contact: Benjamin Howell Vice President, Professional Lines, Asia +852-3405-7731 ben.howell@awac.com

About Allied World Assurance Company

Allied World Assurance Company, Ltd, our Bermuda insurance and reinsurance subsidiary, has an authorized branch office in Hong Kong from which it conducts general insurance business in certain specified classes. Allied World Assurance Company Holdings, Ltd, through its subsidiaries, is a global provider of innovative property, casualty and specialty insurance and reinsurance solutions, offering superior client service through offices in Bermuda, the United States, Europe and Hong Kong. Our insurance and reinsurance subsidiaries are rated A (Excellent) by A.M. Best Company. For further information on Allied World, please visit our website at www.awac.com.

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 the ability to recognize the benefits of the Darwin Professional Underwriters, Inc. acquisition; pricing and policy term trends; increased competition; the impact of acts of terrorism and acts of war; greater frequency or severity of unpredictable catastrophic events; investigations of market practices and related settlement terms; negative rating agency actions; the adequacy of our loss reserves; 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 including those related to the ongoing financial crisis; 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.

Source: Allied World Assurance Company, Ltd

Media: Faye Cook, VP, Marketing & Communications, +1-441-278-5406, faye.cook at awac.com, or Investors: Keith J. Lennox, Investor Relations Officer, +1-646-794-0750, keith.lennox at awac.com, both of Allied World Assurance Company