Allied World : Everything you need to know

Corporate headquarters:  27 Richmond Road, Pembroke HM, 08 Bermuda

Founded: 2001

Owned by: Fairfax Financial Holdings

Total assets: US$19 billion (2021)

Total capital: US$5.3 billion (2021)

Gross written premiums: US$5.8 billion (2021)

Policies written: Nearly 456,000

Number of employees: 1,400

Number of offices worldwide: 21

Key people: Lou Iglesias (CEO, Global Insurance), Wesley Dupont (chief operating officer), Tom Quinn (chief information officer)

Allied World Assurance Company Holdings, Ltd. is a global provider of insurance and reinsurance solutions. Headquartered in Bermuda, Allied World has been offering property, casualty, employment practices liability, and environmental liability insurance products and services to clients worldwide since the company’s founding in 2001. In 2017, Allied World was taken over by Canadian financial holdings company, Fairfax Financial Holdings Limited. It now operates around the world as a Fairfax subsidiary.

 

The Allied World footprint

Allied World operates 26 global re/insurance divisions through 21 offices around the world. It has a strong presence in North America, Europe and in Asia-Pacific, with the majority of its office locations in the USA. The firm employs over 1,400 people worldwide. Since its establishment, the company has written nearly 456,000 policies for over 350,000 commercial clients and cedents globally.

 

On the insurance product menu 

The insurer has a lot of products and solutions on its menu, primarily focused on complex or specialty risks. The firm’s chief executive of global insurance, Lou Iglesias, explained in a video on the Allied World website: “At Allied World, we differentiate ourselves through our entrepreneurial spirit, through our people, and through our product knowledge. Our customers come to us for special needs that they can’t get elsewhere in the marketplace.”

Products offered vary slightly based on locations and jurisdictions around the world. Its insurance solutions include casualty, commercial motor, construction & engineering, crisis management, environmental liability, frameWRXSM, healthcare liability, management & financial lines, marine, personal lines, professional liability/indemnity, programs, property & energy, small business, surety, and workers’ compensation.

 

On the reinsurance product menu

Allied World provides global reinsurance solutions through Allied World Re. Through regional solutions in Asia-Pacific, Bermuda, Europe, Latin America and the US, and via its Lloyd’s Syndicate 2232, Allied World RE reinsures a wide range of clients operating around the world. The reinsurer offers solutions to cedents in casualty, financial lines, marine, professional liability, property, and specialty lines of business. 

 

A breakdown of GWP

In 2021, Allied World reported approximately US$5.9 billion in gross premiums written (GPW). Of that GPW, Allied World broke its business down to the following:

- Casualty: 42%

- Property: 15%

- North America reinsurance: 13%

- Professional lines: 12%

- Programs: 10%

- International reinsurance: 6%

- Worldwide specialty reinsurance: 2%

 

The Fairfax acquisition

Fairfax Financial Holdings Ltd. completed a US$4.9 billion acquisition of Allied World on July 06, 2017.  At the time, this marked Fairfax CEO Prem Watsa’s largest-ever purchase. The deal made Allied World a wholly-owned subsidiary of Fairfax, but the re/insurer kept its executive and senior management teams. As Watsa announced when the deal was first made public: “Allied World will operate within the Fairfax group on a decentralized basis after closing, and we are looking forward to supporting Scott and the entire team at Allied World in growing their business over the long-term.” 

As part of its Allied World takeover, Fairfax received a US$1 billion investment from OMERS, which indirectly acquired 21% of the outstanding shares of Allied World Assurance Company Holdings. Sharon Ludlow, head of insurance investments at OMERS, expressed her enthusiasm for the deal, saying: “OMERS’ investment in Allied World is consistent with our strategy to invest in high-quality companies, with strong fundamentals and a track record of value creation.”

 

A relationship-focused firm

Allied World claims to be built around a value-oriented and service-driven, customer-centric model. In 2018, the global insurance and reinsurance solutions provider appointed Faye Cook as its first-ever head of client engagement and global accounts, with the aim of managing and streamlining client relationships around the world. Cook explained: “Strong client relationships are an important brand pillar for us at Allied World. The creation of my role was the company’s formal way of saying: ‘This is where we stand with clients. We want to build long-term holistic partnerships with them, and ensure that our lines of business around the world are communicating and coordinating in order to foster that relationship. We don’t just want to be seen as capital; we want to offer value and trust.”

Allied World : In the news