Allied World has launched its Swiss operating company, Allied World Assurance Company, AG.

The new company will write direct insurance in Switzerland and focus on professional lines and casualty business.

The new operating company was licensed to underwrite reinsurance and insurance business by the Swiss Financial Market Supervisory Authority (FINMA) on March 31, 2011 and is rated A by Standard & Poor's.

Allied World CEO and president, Scott Carmilani, said: "We are excited about the launch of our new Swiss operating company which allows Allied World greater proximity to our clients in continental Europe and will broaden our product offerings in this jurisdiction. This is another step forward for our company as we continue to expand our global operating platform."

Allied World's reinsurance segment, which has underwritten business out of the Zug branch of its European reinsurance company since September 2008, is now authorised to commence writing treaty agreements both in Switzerland and abroad, through the new Swiss company.

Allied World redomiciled its company headquarters to Zug, Switzerland in 2010.

Allied World remains in negotiations to buy Transatlantic Re, with the company due to hold an extraordinary shareholders meeting on 20 September to consider its options on the Transatlantic merger.