2022 First Quarter Financial Supplement
Alleghany
FINANCIAL SUPPLEMENT
Three Months Ended
(Unaudited)
Investor Contact:
Phone: (212) 508-8116
This report is for informational purposes only. It should be read in conjunction with documents filed by
Quarterly Reports on Form 10-Q.
PAGE 1
Forward-Looking Statements
Certain statements contained in this Financial Supplement may be deemed to be "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of words such as "may," "will," "expect," "project," "estimate," "anticipate," "plan," "believe," "potential," "should" or the negative versions of those words or other comparable words. Forward-looking statements do not relate solely to historical or current facts, rather they are based on management's expectations as well as certain assumptions and estimates made by, and information available to, management at the time. These statements are not guarantees of future performance. These forward-looking statements are based upon Alleghany's current expectations and are subject to a number of uncertainties and risks that could significantly affect current plans, anticipated actions and Alleghany's future financial condition and results. Factors that could cause these forward-looking statements to differ, possibly materially, from that currently contemplated include:
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• significant weather-related or other natural or man-made catastrophes and disasters;
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• the effects of outbreaks of pandemics or contagious diseases, including the length and severity of the recent worldwide coronavirus pandemic, known as COVID-19, including its impact on our business;
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• the cyclical nature of the property and casualty reinsurance and insurance industries;
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• changes in market prices of Alleghany's significant equity investments and changes in value of Alleghany's debt securities portfolio;
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• adverse loss development for events insured by Alleghany's reinsurance and insurance subsidiaries in either the current year or prior years;
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• the long-tail and potentially volatile nature of certain casualty lines of business written by Alleghany's reinsurance and insurance subsidiaries;
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• the cost and availability of reinsurance;
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• the reliance by Alleghany's reinsurance and insurance operating subsidiaries on a limited number of brokers;
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• legal, political, judicial and regulatory changes;
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• increases in the levels of risk retention by Alleghany's reinsurance and insurance subsidiaries;
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• changes in the ratings assigned to Alleghany's reinsurance and insurance subsidiaries;
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• claims development and the process of estimating reserves;
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• exposure to terrorist acts and acts of war;
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• the willingness and ability of Alleghany's reinsurance and insurance subsidiaries' reinsurers to pay reinsurance recoverables owed to Alleghany's reinsurance and insurance subsidiaries;
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• the uncertain nature of damage theories and loss amounts;
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• the loss of key personnel at Alleghany or its operating subsidiaries;
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• fluctuation in foreign currency exchange rates;
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• the failure to comply with the restrictive covenants contained in the agreements governing Alleghany's indebtedness;
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• the ability to make payments on, or repay or refinance, Alleghany's debt;
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• risks inherent in international operations;
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• difficult and volatile conditions in the global economy;
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• the failure to complete the merger with
Berkshire Hathaway Inc. on the terms and timeline currently contemplated or at all; -
• risks related to the conduct of our business while the merger with
Berkshire Hathaway Inc. is pending; and -
• risks related to uncertainties related to the consummation of the merger with
Berkshire Hathaway Inc.
Additional risks and uncertainties include general economic and political conditions, including the effects of a prolonged
BASIS OF PRESENTATION
Presentation
All financial information contained herein is unaudited. Certain amounts may not reconcile exactly due to rounding differences. Unless otherwise noted, all data is in millions of
Definitions
References in this financial supplement (the "Financial Supplement") to the "Company," "Alleghany," "
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• "TransRe" are to our wholly-owned reinsurance holding company subsidiary
Transatlantic Holdings, Inc. and its subsidiaries; -
• "AIHL" are to our wholly-owned insurance holding company subsidiary
Alleghany Insurance Holdings LLC ; -
• "RSUI" are to our wholly-owned subsidiary
RSUI Group, Inc. and its subsidiaries; -
• "CapSpecialty" are to our wholly-owned subsidiary
CapSpecialty, Inc. and its subsidiaries; -
• "AIHL Re" are to our wholly-owned subsidiary
AIHL Re LLC ; -
• "Roundwood" are to our wholly-owned subsidiary
Roundwood Asset Management LLC ; -
• "
Alleghany Capital " are to our wholly-owned subsidiaryAlleghany Capital Corporation and its subsidiaries; -
• "PCT" are to our wholly-owned subsidiary
Precision Cutting Technologies, Inc. and its subsidiaries; -
• "Kentucky Trailer" are to our majority-owned subsidiary
R.C. Tway Company, LLC and its subsidiaries; -
• "IPS" are to our majority-owned subsidiary
IPS-Integrated Project Services, LLC and its subsidiaries; -
• "Jazwares" are to our majority-owned subsidiary
Jazwares, LLC and its subsidiaries and affiliates; -
• "W&W|AFCO Steel" are to our majority-owned subsidiary
WWSC Holdings, LLC and its subsidiaries; -
• "Concord" are to our majority-owned subsidiary
CHECO Holdings, LLC and its subsidiaries; -
• "Wilbert" are to our majority-owned subsidiary
Wilbert Funeral Services, Inc. and its subsidiaries; -
• "Piedmont" are to our wholly-owned subsidiary
Piedmont Manufacturing Group, LLC and its subsidiaries; and -
• "
Alleghany Properties " are to our wholly-owned subsidiaryAlleghany Properties Holdings LLC and its subsidiaries.
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FINANCIAL SUPPLEMENT TABLE OF CONTENTS Page I. FINANCIAL SUMMARY |
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10 Year Financial Summary 6 |
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Historical Growth in Book Value per Share 7 |
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Consolidated Financial Highlights 8 |
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Capital Allocation by Subsidiary 9 |
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Consolidated Statements of Earnings 10 |
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Earnings by Segment 11 |
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Share Repurchase Detail 12 |
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II. UNDERWRITING RESULTS |
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Premiums Written 14 |
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Consolidated Underwriting Results 15 - 16 |
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Catastrophe Exposure 17 |
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III. |
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Product and Service Revenues 19 |
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Results 20 |
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Equity 21 |
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Condensed Consolidating Balance Sheets 22 |
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Condensed Consolidating Statements of Cash Flows 23 |
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IV.BALANCE SHEET AND INVESTMENT ITEMS |
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Condensed Consolidating Balance Sheets 25 |
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Consolidated Total Investment Portfolio 26 |
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Debt Securities Portfolio Credit Quality 27 |
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Net Investment Income 28 |
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Loss and Loss Adjustment Expenses (LAE) 29 |
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Capital Structure and Leverage Ratios 30 V. RECONCILIATIONS |
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Basic and Diluted Earnings per Share Information 32 |
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Adjusted Earnings Reconciliation 33 - 34 |
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Retuon Average Stockholders' Equity 35 |
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Book Value per Share 36 |
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Consolidated Changes in Stockholders' Equity 37 |
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Financial Statement Portfolio Return 38 |
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Annualized Investment Book Yield 39 |
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Non-GAAP Financial Measures 40 |
Financial Summary
Attachments
Disclaimer


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