Allied World and Crescent Capital Group Announce Key Investment Agreement

  Allied World and Crescent Capital Group Announce Key Investment Agreement

  PR Newswire

  ZUG, Switzerland, Jan. 10, 2013

ZUG, Switzerland, Jan. 10, 2013 /PRNewswire/ -- Allied World Assurance Company
Holdings, AG announced today an investment agreement between Allied World
Financial Services, Inc., and Crescent Capital Group LP, a privately held
asset management firm that specializes in public and private below investment
grade assets spanning the entire credit capital structure. Under the terms of
the transaction, Allied World Financial Services acquired a minority ownership
interest in the firm and Crescent will manage $500 million of Allied World's
investment portfolio to be deployed across a diversified set of credit
strategies, over the next several years.

"Crescent Capital has over 20 years of experience investing in below
investment grade credit and structured products, and I am extremely confident
in its management team and investment process," commented Scott Carmilani,
President and CEO of Allied World. "Mark Attanasio, Jean-Marc Chapus and their
investment team have a proven track record of generating strong returns for
Crescent's client base. Their investment strategies complement Allied World's
existing credit strategies and relationships, and we believe this will be an
extremely beneficial relationship for both parties."

John Gauthier, President of Allied World Financial Services, added, "Since the
launch of our financial services platform, we have announced four strategic
partnerships that complement our core insurance and reinsurance operations. We
believe these deals will help Allied World manage our expenses, optimize our
investments returns, and over time, provide earnings to AWH shareholders. The
Crescent transaction, with its diverse credit strategies, will complement our
previously-announced transactions, and we are excited about welcoming the
Crescent team into our financial services family."

"We are confident our partnership with Allied World will enhance our ability
to serve the growing needs of investors looking for proven credit strategies
that deliver differentiated risk-adjusted -returns," said Mark Attanasio,
Co-Founder and Managing Partner of Crescent Capital. "This investment
demonstrates Allied World's confidence in our investment process, people and
performance, all of which we have been proud of since founding the group over
two decades ago. Jean-Marc Chapus and I, and our team are excited to work with
our new partner."

Berkshire Capital Securities, LLC advised Allied World on the transaction.

About Crescent Capital

Crescent Capital Group invests at all levels of the capital structure, with a
significant focus on below investment grade credit through strategies that
invest in senior bank loans, high yield debt, mezzanine debt, distressed debt
and select private equity securities. For more than 20 years, these strategies
have provided high current income and total return in a variety of market
cycles through the group's ability to source and evaluate credit investment
opportunities as a result of long-term relationships with financial sponsors,
companies and capital markets teams. Each of Crescent's founding partners has
more than 25 years of experience in the credit markets, including significant
roles in the emergence of the high yield bond and related markets. As of
December 31, 2012, Crescent manages over $11 billion in assets, with a
relatively equal split between marketable securities and proprietary
closed-end private investment partnerships, and has over 70 professionals
across the United States and Europe.

About Allied World Assurance Company

Allied World Assurance Company Holdings, AG, through its subsidiaries, is a
global provider of innovative property, casualty and specialty insurance and
reinsurance solutions, offering 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 Fitch. Please visit www.awac.com for further
information on 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 impact of acts of
terrorism and acts of war; greater frequency or severity of unpredictable
catastrophic events; 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; 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.

Website: http://www.awac.com
Contact: Media: Faye Cook, Vice President, Marketing & Communications,
+1-441-278-5406, faye.cook@awac.com; or Investors: Keith J. Lennox, Investor
Relations Officer, +1-646-794-0750, keith.lennox@awac.com