Allied World Assurance Company Holdings expects to report $150 million in net realised investment losses and $60 million in net unrealised investment losses for the third quarter of 2008.

The company released preliminary third quarter estimates yesterday, saying it will likely report net operating income of $85 million to $95 million.

As of September 30, shareholder equity is expected to be in line with the $2.2 billion reported at year end 2007.

"While Allied World expects to recognise investment losses during the quarter, our investment portfolio remains well diversified, conservative and of high quality," said president and CEO Scott Carmilani. "As of September 30, 2008, our balance sheet and capital position remain strong.

"We believe Allied World remains extremely well positioned to withstand the current financial turmoil and to continue the successful development of our company."

The insurer and reinsurer, which has its corporate headquarters on the Island, said its investment portfolio does not hold any real estate, collateralised loan obligations, direct investment in common equities or other complex financial structures.

"The company's investment portfolio has no transactions that require the posting of collateral," AWAC said in its release. "The company maintains a well-diversified portfolio consisting of approximately $6.4 billion in cash and invested assets at September 30, 2008 with an average credit quality of AA+ and an average duration of approximately 3.4 years."

Allied World Assurance will issue its full third quarter earnings report after close of market on November 6.

Yesterday in trading on the New York Stock Exchange, it was one of the few risers within yet another overall market nosedive.

AWAC shares closed almost $1 higher at $28.50 (adding $0.99 or 3.60 percent). The company has fallen considerably from its 52-week high of $51.55, however.