10-Q 1 y-20220331.htm 10-Q 10-Q
1,028,892138,77723,752--12-318,022falseQ10000775368two years138,777ALLEGHANY CORP /DE0000775368us-gaap:OperatingSegmentsMembery:ReinsuranceSegmentMember2022-01-012022-03-310000775368us-gaap:CommercialMortgageBackedSecuritiesMember2021-01-012021-03-310000775368y:CasualtyAndSpecialtyReinsuranceSegmentsMembery:ReinsuranceSegmentMembery:NoncatastropheMember2022-01-012022-03-310000775368us-gaap:CommercialMortgageBackedSecuritiesMemberus-gaap:FairValueInputsLevel3Member2022-03-310000775368us-gaap:OperatingSegmentsMembery:InsuranceSegmentMember2022-03-310000775368y:LowestOfThreeRatingAgenciesBelowBBBOrNotRatedRatingMember2022-03-3100007753682021-03-310000775368us-gaap:AdditionalPaidInCapitalMember2021-12-310000775368us-gaap:OtherLongTermInvestmentsMember2021-03-310000775368us-gaap:ForeignCorporateDebtSecuritiesMembery:LowestOfThreeRatingAgenciesAARatingMember2022-03-310000775368us-gaap:AdditionalPaidInCapitalMember2021-03-310000775368y:LowestOfThreeRatingAgenciesBBBRatingMember2022-01-012022-03-310000775368us-gaap:OtherLongTermInvestmentsMember2021-01-012021-03-310000775368y:LowestOfThreeRatingAgenciesAAARatingMemberus-gaap:ResidentialMortgageBackedSecuritiesMember2022-03-310000775368us-gaap:CommonStockMemberus-gaap:FairValueInputsLevel3Member2022-03-310000775368y:CapSpecialtyIncorporatedMembery:InsuranceSegmentMember2022-01-012022-03-310000775368us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-01-012021-03-310000775368us-gaap:RetainedEarningsMember2021-12-310000775368us-gaap:FairValueInputsLevel2Memberus-gaap:PreferredStockMember2021-12-310000775368us-gaap:ReinsuranceRecoverableForPaidAndUnpaidClaimsAndClaimsAdjustmentsMembersrt:AMBestARatingMembery:FairfaxFinancialHoldingsLimitedMemberus-gaap:ReinsurerConcentrationRiskMember2022-03-310000775368us-gaap:ReinsuranceRecoverableForPaidAndUnpaidClaimsAndClaimsAdjustmentsMembery:OtherReinsurersMemberus-gaap:ReinsurerConcentrationRiskMember2022-01-012022-03-310000775368us-gaap:CommercialMortgageBackedSecuritiesMember2022-01-012022-03-310000775368us-gaap:PreferredStockMemberus-gaap:FairValueInputsLevel3Member2021-12-310000775368us-gaap:FairValueInputsLevel2Memberus-gaap:CommonStockMember2021-12-310000775368us-gaap:ReinsuranceRecoverableForPaidAndUnpaidClaimsAndClaimsAdjustmentsMembersrt:AMBestAPlusRatingMembery:PartnerReLimitedMemberus-gaap:ReinsurerConcentrationRiskMember2022-01-012022-03-310000775368us-gaap:CollateralizedLoanObligationsMembery:OtherAssetBackedSecuritiesMember2021-12-310000775368us-gaap:FairValueInputsLevel2Membery:OtherAssetBackedSecuritiesMember2022-03-3100007753682020-12-310000775368us-gaap:CommonStockMember2021-12-310000775368y:IntegratedProjectServicesLLCMember2021-10-140000775368us-gaap:RetainedEarningsMember2021-03-310000775368us-gaap:OperatingSegmentsMembery:AlleghanyCapitalCorporationSegmentMember2021-12-310000775368us-gaap:AccumulatedTranslationAdjustmentMember2022-01-012022-03-3100007753682021-01-012021-03-310000775368us-gaap:DomesticCorporateDebtSecuritiesMembery:LowestOfThreeRatingAgenciesBelowBBBOrNotRatedRatingMember2022-03-310000775368us-gaap:ReinsuranceRecoverableForPaidAndUnpaidClaimsAndClaimsAdjustmentsMembersrt:AMBestAPlusRatingMembery:RenaissanceReHoldingsLimitedMemberus-gaap:ReinsurerConcentrationRiskMember2022-01-012022-03-310000775368us-gaap:FairValueInputsLevel1Memberus-gaap:ForeignGovernmentDebtSecuritiesMember2022-03-310000775368us-gaap:FairValueInputsLevel2Member2022-03-310000775368us-gaap:CommercialMortgageBackedSecuritiesMembery:LowestOfThreeRatingAgenciesAAARatingMember2022-03-310000775368us-gaap:FairValueInputsLevel2Memberus-gaap:USTreasurySecuritiesMember2022-03-310000775368srt:AMBestAMinusRatingMemberus-gaap:ReinsuranceRecoverableForPaidAndUnpaidClaimsAndClaimsAdjustmentsMembery:SiriuspointLtdMemberus-gaap:ReinsurerConcentrationRiskMember2022-03-310000775368us-gaap:FairValueInputsLevel1Memberus-gaap:ForeignGovernmentDebtSecuritiesMember2021-12-310000775368us-gaap:FairValueInputsLevel1Memberus-gaap:ResidentialMortgageBackedSecuritiesMember2022-03-310000775368us-gaap:FairValueInputsLevel2Memberus-gaap:CommonStockMember2022-03-310000775368y:LowestOfThreeRatingAgenciesBelowBBBOrNotRatedRatingMember2022-01-012022-03-310000775368us-gaap:ResidentialMortgageBackedSecuritiesMember2021-01-012021-03-310000775368us-gaap:OperatingSegmentsMembery:AlleghanyCapitalCorporationSegmentMember2021-01-012021-03-310000775368us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2021-03-310000775368us-gaap:ResidentialMortgageBackedSecuritiesMembery:LowestOfThreeRatingAgenciesAARatingMember2022-03-310000775368y:NotRatedMemberus-gaap:ReinsuranceRecoverableForPaidAndUnpaidClaimsAndClaimsAdjustmentsMembery:KaneSACLtdRondoutSegregatedAccountMemberus-gaap:ReinsurerConcentrationRiskMember2022-03-310000775368us-gaap:ShortTermInvestmentsMemberus-gaap:FairValueInputsLevel3Member2022-03-310000775368us-gaap:CorporateNonSegmentMember2022-03-310000775368us-gaap:DomesticCorporateDebtSecuritiesMembery:LowestOfThreeRatingAgenciesBBBRatingMember2022-03-310000775368us-gaap:FairValueInputsLevel3Memberus-gaap:ForeignGovernmentDebtSecuritiesMember2022-03-310000775368us-gaap:ShortTermInvestmentsMember2021-12-310000775368us-gaap:OtherLongTermInvestmentsMember2021-12-310000775368us-gaap:FairValueInputsLevel2Membery:OtherAssetBackedSecuritiesMember2021-12-310000775368y:BerkshireHathawayIncMember2022-03-202022-03-200000775368us-gaap:AdditionalPaidInCapitalMember2022-01-012022-03-310000775368y:ConcordMember2022-03-310000775368us-gaap:CommercialMortgageBackedSecuritiesMemberus-gaap:FairValueInputsLevel1Member2022-03-310000775368us-gaap:RetainedEarningsMember2021-01-012021-03-310000775368us-gaap:FairValueInputsLevel1Member2022-03-310000775368us-gaap:FairValueInputsLevel2Memberus-gaap:ForeignCorporateDebtSecuritiesMember2021-12-310000775368us-gaap:CommonStockMemberus-gaap:FairValueInputsLevel1Member2022-03-310000775368y:LowestOfThreeRatingAgenciesAAARatingMemberus-gaap:ForeignGovernmentDebtSecuritiesMember2022-03-310000775368y:LowestOfThreeRatingAgenciesAAARatingMemberus-gaap:MunicipalBondsMember2022-03-310000775368us-gaap:FairValueInputsLevel1Memberus-gaap:ShortTermInvestmentsMember2021-12-310000775368us-gaap:OperatingSegmentsMembery:RsuiGroupIncorporatedMembery:InsuranceSegmentMember2022-01-012022-03-310000775368y:HotelDevelopmentProjectsMembersrt:MaximumMember2022-03-310000775368us-gaap:USTreasurySecuritiesMembery:LowestOfThreeRatingAgenciesBBBRatingMember2022-03-310000775368us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2021-12-310000775368us-gaap:ReinsuranceRecoverableForPaidAndUnpaidClaimsAndClaimsAdjustmentsMemberus-gaap:ReinsurerConcentrationRiskMember2022-03-310000775368us-gaap:OperatingSegmentsMembery:ReinsuranceSegmentAndInsuranceSegmentMember2022-03-310000775368us-gaap:DomesticCorporateDebtSecuritiesMemberus-gaap:FairValueInputsLevel3Member2021-12-310000775368us-gaap:FairValueInputsLevel2Memberus-gaap:MunicipalBondsMember2022-03-310000775368us-gaap:FairValueInputsLevel3Memberus-gaap:ForeignCorporateDebtSecuritiesMember2022-03-310000775368y:ReinsuranceSegmentMember2021-01-012021-03-310000775368us-gaap:FairValueInputsLevel2Memberus-gaap:ResidentialMortgageBackedSecuritiesMember2021-12-310000775368y:OtherAssetBackedSecuritiesMember2021-12-310000775368us-gaap:FairValueInputsLevel2Memberus-gaap:ShortTermInvestmentsMember2021-12-310000775368y:PillarCapitalHoldingsLimitedAndManagedFundsMember2021-12-310000775368us-gaap:TreasuryStockMember2020-12-310000775368y:LowestOfThreeRatingAgenciesARatingMember2022-03-310000775368us-gaap:AccumulatedTranslationAdjustmentMember2020-12-310000775368us-gaap:OperatingSegmentsMembery:NonIndustrialSegmentMembery:AlleghanyCapitalCorporationSegmentMember2021-01-012021-03-310000775368y:FloatingRateDebtFundedByAlleghanyCorporationMemberus-gaap:OperatingSegmentsMembery:ConcordMembery:AlleghanyCapitalCorporationSegmentMember2022-03-310000775368us-gaap:FairValueInputsLevel1Membery:OtherAssetBackedSecuritiesMember2022-03-310000775368us-gaap:MunicipalBondsMemberus-gaap:FairValueInputsLevel1Member2021-12-310000775368us-gaap:CommonStockMemberus-gaap:FairValueInputsLevel3Member2021-12-310000775368y:TradeNamesAndTradeMarksMembery:AnchorbuoyLimitedAcquisitionByIntegratedProjectServicesLlcMember2021-10-140000775368srt:AMBestAPlusPlusRatingMemberus-gaap:ReinsuranceRecoverableForPaidAndUnpaidClaimsAndClaimsAdjustmentsMembery:ChubbLtdMemberus-gaap:ReinsurerConcentrationRiskMember2022-03-310000775368y:NotRatedMemberus-gaap:ReinsuranceRecoverableForPaidAndUnpaidClaimsAndClaimsAdjustmentsMembery:KaneSACLtdRondoutSegregatedAccountMemberus-gaap:ReinsurerConcentrationRiskMember2022-01-012022-03-310000775368us-gaap:ReinsuranceRecoverableForPaidAndUnpaidClaimsAndClaimsAdjustmentsMembersrt:AMBestARatingMembery:LloydsOfLondonMemberus-gaap:ReinsurerConcentrationRiskMember2022-01-012022-03-310000775368us-gaap:OperatingSegmentsMembery:KentuckyTrailerMembery:AlleghanyCapitalCorporationSegmentMember2022-03-310000775368us-gaap:FairValueInputsLevel2Memberus-gaap:ShortTermInvestmentsMember2022-03-310000775368us-gaap:CarryingReportedAmountFairValueDisclosureMember2022-03-310000775368y:KentuckyTrailerMember2022-03-310000775368y:LowestOfThreeRatingAgenciesNotRatedMember2022-03-310000775368us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2021-03-310000775368us-gaap:OperatingSegmentsMembery:JazwaresLimitedLiabilityCompanyMembery:AlleghanyCapitalCorporationSegmentMember2022-03-310000775368us-gaap:ShortTermInvestmentsMember2022-03-310000775368us-gaap:CommercialMortgageBackedSecuritiesMember2020-12-310000775368y:LowestOfThreeRatingAgenciesARatingMember2022-01-012022-03-310000775368us-gaap:CommonStockMember2022-03-310000775368us-gaap:DomesticCorporateDebtSecuritiesMember2022-03-310000775368y:RsuiGroupIncorporatedMembery:InsuranceSegmentMembery:PropertyAndOtherInsuranceMember2022-01-012022-03-310000775368y:LowestOfThreeRatingAgenciesAARatingMember2022-03-310000775368y:PrecisionCuttingTechnologiesIncMemberus-gaap:OperatingSegmentsMembery:AlleghanyCapitalCorporationSegmentMember2022-03-310000775368us-gaap:CustomerRelationshipsMembery:AnchorbuoyLimitedAcquisitionByIntegratedProjectServicesLlcMember2021-10-140000775368us-gaap:FairValueInputsLevel2Memberus-gaap:CommercialMortgageBackedSecuritiesMember2022-03-310000775368y:RsuiGroupIncorporatedMembery:InsuranceSegmentMember2022-01-012022-03-310000775368us-gaap:OperatingSegmentsMemberus-gaap:CorporateAndOtherMembery:AlleghanyCapitalCorporationSegmentMember2022-01-012022-03-310000775368y:IntegratedProjectServicesLLCMember2022-03-310000775368us-gaap:CarryingReportedAmountFairValueDisclosureMember2021-12-310000775368y:CasualtyAndSpecialtyReinsuranceSegmentsMembery:ReinsuranceSegmentMembery:NoncatastropheMember2021-01-012021-03-310000775368us-gaap:MunicipalBondsMembery:LowestOfThreeRatingAgenciesBelowBBBOrNotRatedRatingMember2022-03-310000775368us-gaap:FairValueInputsLevel1Memberus-gaap:PreferredStockMember2021-12-310000775368y:IntegratedProjectServicesLLCMember2021-10-130000775368us-gaap:CommercialMortgageBackedSecuritiesMember2022-03-310000775368us-gaap:ForeignCorporateDebtSecuritiesMember2020-12-310000775368us-gaap:CommercialMortgageBackedSecuritiesMembery:LowestOfThreeRatingAgenciesBBBRatingMember2022-03-310000775368us-gaap:FairValueInputsLevel2Memberus-gaap:MunicipalBondsMember2021-12-310000775368us-gaap:RetainedEarningsMember2022-01-012022-03-310000775368us-gaap:OperatingSegmentsMembery:PropertyReinsuranceSegmentMembery:ReinsuranceSegmentMember2022-01-012022-03-310000775368us-gaap:ReinsuranceRecoverableForPaidAndUnpaidClaimsAndClaimsAdjustmentsMembery:RenaissanceReHoldingsLimitedMembersrt:AMBestAPlusRatingMemberus-gaap:ReinsurerConcentrationRiskMember2022-03-310000775368us-gaap:USTreasurySecuritiesMember2021-12-310000775368us-gaap:OperatingSegmentsMembery:ReinsuranceSegmentAndInsuranceSegmentMember2021-01-012021-03-310000775368us-gaap:OperatingSegmentsMembery:AlleghanyCapitalCorporationSegmentMember2022-03-310000775368us-gaap:FairValueInputsLevel1Memberus-gaap:ResidentialMortgageBackedSecuritiesMember2021-12-310000775368us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2022-03-310000775368us-gaap:FairValueInputsLevel2Memberus-gaap:PreferredStockMember2022-03-310000775368us-gaap:ReinsuranceRecoverableForPaidAndUnpaidClaimsAndClaimsAdjustmentsMembersrt:AMBestAPlusRatingMembery:PartnerReLimitedMemberus-gaap:ReinsurerConcentrationRiskMember2022-03-310000775368us-gaap:ForeignGovernmentDebtSecuritiesMember2021-12-310000775368us-gaap:OperatingSegmentsMembery:AlleghanyCapitalCorporationSegmentMember2022-01-012022-03-310000775368y:OtherAssetBackedSecuritiesMembery:LowestOfThreeRatingAgenciesBBBRatingMember2022-03-310000775368us-gaap:OperatingSegmentsMembery:NonIndustrialSegmentMemberus-gaap:TransferredOverTimeMembery:AlleghanyCapitalCorporationSegmentMember2022-01-012022-03-310000775368us-gaap:FairValueInputsLevel1Memberus-gaap:ForeignCorporateDebtSecuritiesMember2022-03-310000775368us-gaap:TreasuryStockMember2022-03-310000775368us-gaap:CededCreditRiskSecuredMemberus-gaap:ReinsuranceRecoverableForPaidAndUnpaidClaimsAndClaimsAdjustmentsMemberus-gaap:ReinsurerConcentrationRiskMember2022-01-012022-03-310000775368y:OtherAssetBackedSecuritiesMembery:LowestOfThreeRatingAgenciesAARatingMember2022-03-310000775368us-gaap:CommercialMortgageBackedSecuritiesMemberus-gaap:FairValueInputsLevel1Member2021-12-310000775368us-gaap:AccumulatedTranslationAdjustmentMember2022-03-310000775368us-gaap:AccumulatedTranslationAdjustmentMember2021-03-310000775368us-gaap:OperatingSegmentsMembery:WilbertFuneralServicesIncMembery:AlleghanyCapitalCorporationSegmentMember2022-03-310000775368us-gaap:PreferredStockMember2022-01-012022-03-310000775368us-gaap:USTreasurySecuritiesMemberus-gaap:FairValueInputsLevel3Member2022-03-310000775368y:LowestOfThreeRatingAgenciesAAARatingMemberus-gaap:USTreasurySecuritiesMember2022-03-310000775368y:LowestOfThreeRatingAgenciesBelowBBBOrNotRatedRatingMemberus-gaap:ResidentialMortgageBackedSecuritiesMember2022-03-310000775368y:RsuiGroupIncorporatedMembery:CasualtyInsuranceMembery:InsuranceSegmentMember2021-01-012021-03-310000775368y:RsuiGroupIncorporatedMembery:CasualtyInsuranceMembery:InsuranceSegmentMember2022-01-012022-03-310000775368us-gaap:DomesticCorporateDebtSecuritiesMember2022-01-012022-03-310000775368us-gaap:OtherLongTermInvestmentsMember2020-12-310000775368us-gaap:ResidentialMortgageBackedSecuritiesMember2020-12-310000775368us-gaap:CommonStockMemberus-gaap:FairValueInputsLevel1Member2021-12-310000775368us-gaap:PreferredStockMember2020-12-310000775368y:LowestOfThreeRatingAgenciesBelowBBBOrNotRatedRatingMemberus-gaap:ForeignCorporateDebtSecuritiesMember2022-03-310000775368us-gaap:TreasuryStockMember2022-01-012022-03-3100007753682022-04-280000775368y:ReinsuranceSegmentMembery:PropertyReinsuranceSegmentMember2021-01-012021-03-3100007753682022-01-012022-03-310000775368us-gaap:MunicipalBondsMember2022-03-310000775368y:OtherAssetBackedSecuritiesMember2021-01-012021-03-310000775368us-gaap:FairValueInputsLevel3Memberus-gaap:ResidentialMortgageBackedSecuritiesMember2021-12-310000775368y:LowestOfThreeRatingAgenciesAAARatingMembery:OtherAssetBackedSecuritiesMember2022-03-310000775368us-gaap:ForeignGovernmentDebtSecuritiesMembery:LowestOfThreeRatingAgenciesBBBRatingMember2022-03-310000775368us-gaap:AccumulatedTranslationAdjustmentMember2021-12-310000775368y:ReinsuranceSegmentMembery:PropertyReinsuranceSegmentMember2022-01-012022-03-310000775368us-gaap:FairValueInputsLevel3Member2022-03-310000775368us-gaap:CorporateNonSegmentMember2022-01-012022-03-310000775368us-gaap:ForeignGovernmentDebtSecuritiesMembery:LowestOfThreeRatingAgenciesARatingMember2022-03-310000775368us-gaap:MunicipalBondsMembery:LowestOfThreeRatingAgenciesAARatingMember2022-03-310000775368us-gaap:DebtSecuritiesMember2022-03-310000775368us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-12-310000775368us-gaap:USTreasurySecuritiesMemberus-gaap:FairValueInputsLevel1Member2022-03-310000775368us-gaap:PreferredStockMemberus-gaap:FairValueInputsLevel3Member2022-03-310000775368us-gaap:FairValueInputsLevel2Member2021-12-310000775368us-gaap:ForeignCorporateDebtSecuritiesMember2021-03-310000775368y:OtherAssetBackedSecuritiesMemberus-gaap:FairValueInputsLevel3Member2021-12-310000775368y:LowestOfThreeRatingAgenciesAAARatingMember2022-03-310000775368us-gaap:ReinsuranceRecoverableForPaidAndUnpaidClaimsAndClaimsAdjustmentsMembersrt:AMBestARatingMembery:LloydsOfLondonMemberus-gaap:ReinsurerConcentrationRiskMember2022-03-310000775368y:LowestOfThreeRatingAgenciesBBBRatingMember2022-03-310000775368y:LowestOfThreeRatingAgenciesCCRatingMember2022-03-310000775368us-gaap:CommonStockMember2022-03-310000775368us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2021-01-012021-03-310000775368us-gaap:AccumulatedTranslationAdjustmentMember2021-01-012021-03-310000775368y:COVID19GlobalPandemicMembery:CasualtyAndSpecialtyReinsuranceSegmentsMembery:ReinsuranceSegmentMember2021-01-012021-03-310000775368y:OtherAssetBackedSecuritiesMembery:LowestOfThreeRatingAgenciesARatingMember2022-03-310000775368us-gaap:OperatingSegmentsMembery:ReinsuranceSegmentMembery:PropertyReinsuranceSegmentMember2021-01-012021-03-310000775368y:AllOtherCatastropheEventsMembery:CasualtyAndSpecialtyReinsuranceSegmentsMembery:ReinsuranceSegmentMember2021-01-012021-03-310000775368y:CasualtyAndSpecialtyReinsuranceSegmentsMembery:ReinsuranceSegmentMember2021-01-012021-03-310000775368us-gaap:FairValueInputsLevel3Memberus-gaap:ResidentialMortgageBackedSecuritiesMember2022-03-310000775368us-gaap:CommonStockMember2021-03-310000775368us-gaap:FairValueInputsLevel1Member2021-12-310000775368y:OtherAssetBackedSecuritiesMember2022-03-310000775368us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2022-03-310000775368us-gaap:FairValueInputsLevel1Memberus-gaap:ShortTermInvestmentsMember2022-03-310000775368us-gaap:OperatingSegmentsMember2021-01-012021-03-310000775368y:LowestOfThreeRatingAgenciesBBRatingMember2022-03-310000775368us-gaap:DomesticCorporateDebtSecuritiesMemberus-gaap:FairValueInputsLevel3Member2022-03-310000775368us-gaap:FairValueInputsLevel2Memberus-gaap:USTreasurySecuritiesMember2021-12-310000775368us-gaap:PreferredStockMember2021-01-012021-03-310000775368us-gaap:CollateralizedLoanObligationsMembery:OtherAssetBackedSecuritiesMember2022-03-310000775368us-gaap:ReinsuranceRecoverableForPaidAndUnpaidClaimsAndClaimsAdjustmentsMembersrt:AMBestAPlusRatingMembery:WrBerkleyCorporationMemberus-gaap:ReinsurerConcentrationRiskMember2022-03-310000775368us-gaap:MunicipalBondsMemberus-gaap:FairValueInputsLevel3Member2021-12-310000775368y:AllOtherCatastropheEventsMembery:PropertyReinsuranceSegmentMembery:ReinsuranceSegmentMember2022-01-012022-03-310000775368us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2021-01-012021-03-310000775368y:IndustrialSegmentMemberus-gaap:OperatingSegmentsMembery:AlleghanyCapitalCorporationSegmentMember2021-01-012021-03-310000775368y:HotelDevelopmentProjectsMember2022-03-310000775368us-gaap:USTreasurySecuritiesMemberus-gaap:FairValueInputsLevel3Member2021-12-310000775368us-gaap:USTreasurySecuritiesMemberus-gaap:FairValueInputsLevel1Member2021-12-310000775368us-gaap:ResidentialMortgageBackedSecuritiesMembery:LowestOfThreeRatingAgenciesBBBRatingMember2022-03-310000775368us-gaap:USTreasurySecuritiesMembery:LowestOfThreeRatingAgenciesARatingMember2022-03-310000775368us-gaap:DomesticCorporateDebtSecuritiesMember2020-12-310000775368us-gaap:PreferredStockMember2021-12-310000775368us-gaap:CommercialMortgageBackedSecuritiesMembery:LowestOfThreeRatingAgenciesAARatingMember2022-03-310000775368us-gaap:ResidentialMortgageBackedSecuritiesMembery:LowestOfThreeRatingAgenciesARatingMember2022-03-310000775368y:LowestOfThreeRatingAgenciesAAARatingMemberus-gaap:ForeignCorporateDebtSecuritiesMember2022-03-310000775368us-gaap:ForeignCorporateDebtSecuritiesMembery:LowestOfThreeRatingAgenciesBBBRatingMember2022-03-310000775368us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2022-01-012022-03-310000775368us-gaap:OperatingSegmentsMembery:ReinsuranceSegmentMember2021-01-012021-03-310000775368us-gaap:ResidentialMortgageBackedSecuritiesMember2021-03-310000775368us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2022-01-012022-03-310000775368y:COVID19GlobalPandemicMembery:ReinsuranceSegmentMembery:PropertyReinsuranceSegmentMember2022-01-012022-03-310000775368us-gaap:ReinsuranceRecoverableForPaidAndUnpaidClaimsAndClaimsAdjustmentsMembersrt:AMBestAPlusRatingMembery:SwissReinsuranceCompanyMemberus-gaap:ReinsurerConcentrationRiskMember2022-03-310000775368us-gaap:USTreasurySecuritiesMembery:LowestOfThreeRatingAgenciesBelowBBBOrNotRatedRatingMember2022-03-310000775368us-gaap:CommonStockMember2020-12-310000775368y:AllOtherCatastropheEventsMembery:ReinsuranceSegmentMembery:PropertyReinsuranceSegmentMember2021-01-012021-03-310000775368y:ReinsuranceSegmentMember2022-01-012022-03-310000775368us-gaap:OperatingSegmentsMembery:CapSpecialtyIncorporatedMembery:InsuranceSegmentMember2021-01-012021-03-310000775368us-gaap:OperatingSegmentsMember2022-01-012022-03-310000775368us-gaap:ForeignCorporateDebtSecuritiesMember2022-01-012022-03-310000775368us-gaap:TreasuryStockMember2021-12-310000775368y:JazwaresLimitedLiabilityCompanyMember2022-03-310000775368y:LowestOfThreeRatingAgenciesCCCRatingMember2022-03-310000775368us-gaap:RetainedEarningsMember2022-03-310000775368y:IndustrialSegmentMemberus-gaap:OperatingSegmentsMembery:AlleghanyCapitalCorporationSegmentMember2022-01-012022-03-310000775368us-gaap:MunicipalBondsMember2021-12-310000775368us-gaap:PreferredStockMember2021-03-310000775368us-gaap:FairValueInputsLevel2Memberus-gaap:ResidentialMortgageBackedSecuritiesMember2022-03-310000775368us-gaap:ReinsuranceRecoverableForPaidAndUnpaidClaimsAndClaimsAdjustmentsMembery:OtherReinsurersMemberus-gaap:ReinsurerConcentrationRiskMember2022-03-310000775368y:LowestOfThreeRatingAgenciesBRatingMember2022-03-310000775368us-gaap:DomesticCorporateDebtSecuritiesMember2021-12-310000775368us-gaap:CededCreditRiskSecuredMemberus-gaap:ReinsuranceRecoverableForPaidAndUnpaidClaimsAndClaimsAdjustmentsMemberus-gaap:ReinsurerConcentrationRiskMember2022-03-310000775368us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2020-12-310000775368y:AnchorbuoyLimitedAcquisitionByIntegratedProjectServicesLlcMember2021-10-140000775368srt:MaximumMember2022-01-012022-03-310000775368us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2022-01-012022-03-310000775368us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2020-12-310000775368us-gaap:OperatingSegmentsMemberus-gaap:CorporateAndOtherMembery:AlleghanyCapitalCorporationSegmentMember2021-01-012021-03-310000775368us-gaap:TreasuryStockMember2021-01-012021-03-310000775368us-gaap:DomesticCorporateDebtSecuritiesMembery:LowestOfThreeRatingAgenciesAARatingMember2022-03-3100007753682022-03-310000775368us-gaap:ReinsuranceRecoverableForPaidAndUnpaidClaimsAndClaimsAdjustmentsMembersrt:AMBestARatingMembery:FairfaxFinancialHoldingsLimitedMemberus-gaap:ReinsurerConcentrationRiskMember2022-01-012022-03-310000775368us-gaap:MunicipalBondsMembery:LowestOfThreeRatingAgenciesBBBRatingMember2022-03-310000775368us-gaap:CommercialMortgageBackedSecuritiesMember2021-12-310000775368us-gaap:MunicipalBondsMembery:LowestOfThreeRatingAgenciesARatingMember2022-03-310000775368us-gaap:OperatingSegmentsMember2022-03-310000775368y:OtherAssetBackedSecuritiesMember2021-03-310000775368srt:AMBestAMinusRatingMemberus-gaap:ReinsuranceRecoverableForPaidAndUnpaidClaimsAndClaimsAdjustmentsMembery:SiriuspointLtdMemberus-gaap:ReinsurerConcentrationRiskMember2022-01-012022-03-310000775368y:CasualtyAndSpecialtyReinsuranceSegmentsMembery:ReinsuranceSegmentMember2022-01-012022-03-310000775368us-gaap:FairValueInputsLevel2Memberus-gaap:DomesticCorporateDebtSecuritiesMember2021-12-310000775368us-gaap:FairValueInputsLevel1Memberus-gaap:PreferredStockMember2022-03-310000775368y:LowestOfThreeRatingAgenciesBelowBBBOrNotRatedRatingMembery:OtherAssetBackedSecuritiesMember2022-03-310000775368us-gaap:AdditionalPaidInCapitalMember2020-12-310000775368us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2021-01-012021-03-310000775368y:StockRepurchaseProgramsTwentyNineteenMember2019-09-300000775368us-gaap:MunicipalBondsMemberus-gaap:FairValueInputsLevel3Member2022-03-310000775368us-gaap:DomesticCorporateDebtSecuritiesMember2021-03-310000775368us-gaap:FairValueInputsLevel3Member2021-12-310000775368us-gaap:AdditionalPaidInCapitalMember2022-03-310000775368y:ReinsuranceSegmentMembery:PropertyReinsuranceSegmentMembery:NoncatastropheMember2021-01-012021-03-310000775368y:WWSCHoldingsLLCMemberus-gaap:OperatingSegmentsMembery:AlleghanyCapitalCorporationSegmentMember2022-03-310000775368us-gaap:ShortTermInvestmentsMemberus-gaap:FairValueInputsLevel3Member2021-12-310000775368us-gaap:FairValueInputsLevel2Memberus-gaap:CommercialMortgageBackedSecuritiesMember2021-12-310000775368us-gaap:CommercialMortgageBackedSecuritiesMembery:LowestOfThreeRatingAgenciesARatingMember2022-03-310000775368us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-12-310000775368us-gaap:CommonStockMember2021-01-012021-03-310000775368us-gaap:OperatingSegmentsMembery:CasualtyAndSpecialtyReinsuranceSegmentsMembery:ReinsuranceSegmentMember2021-01-012021-03-310000775368us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-03-310000775368y:PropertyReinsuranceSegmentMembery:ReinsuranceSegmentMembery:NoncatastropheMember2022-01-012022-03-310000775368us-gaap:OperatingSegmentsMembery:RsuiGroupIncorporatedMembery:InsuranceSegmentMember2021-01-012021-03-310000775368us-gaap:USTreasurySecuritiesMember2022-03-310000775368us-gaap:CommonStockMember2021-12-310000775368srt:MinimumMember2022-01-012022-03-310000775368us-gaap:DomesticCorporateDebtSecuritiesMembery:LowestOfThreeRatingAgenciesARatingMember2022-03-310000775368us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-03-310000775368us-gaap:ResidentialMortgageBackedSecuritiesMember2022-01-012022-03-310000775368y:LowestOfThreeRatingAgenciesAAARatingMember2022-01-012022-03-310000775368y:PiedmontManufacturingGroupLLCMemberus-gaap:OperatingSegmentsMembery:AlleghanyCapitalCorporationSegmentMember2022-03-310000775368y:CapSpecialtyIncorporatedMembery:InsuranceSegmentMember2021-01-012021-03-310000775368us-gaap:CommercialMortgageBackedSecuritiesMember2021-03-3100007753682021-12-310000775368us-gaap:CommercialMortgageBackedSecuritiesMemberus-gaap:FairValueInputsLevel3Member2021-12-310000775368y:NotRatedMemberus-gaap:ReinsuranceRecoverableForPaidAndUnpaidClaimsAndClaimsAdjustmentsMemberus-gaap:ReinsurerConcentrationRiskMembery:IntegralReinsuranceLtdMember2022-01-012022-03-310000775368y:AnchorbuoyLimitedAcquisitionByIntegratedProjectServicesLlcMember2021-10-142021-10-140000775368us-gaap:USTreasurySecuritiesMembery:LowestOfThreeRatingAgenciesAARatingMember2022-03-310000775368us-gaap:DomesticCorporateDebtSecuritiesMember2021-01-012021-03-310000775368y:ReinsurersRatedAOrHigherMemberus-gaap:ReinsuranceRecoverableForPaidAndUnpaidClaimsAndClaimsAdjustmentsMemberus-gaap:ReinsurerConcentrationRiskMember2022-01-012022-03-310000775368us-gaap:ForeignCorporateDebtSecuritiesMember2022-03-310000775368y:OtherAssetBackedSecuritiesMemberus-gaap:FairValueInputsLevel3Member2022-03-310000775368us-gaap:ResidentialMortgageBackedSecuritiesMember2021-12-310000775368us-gaap:OperatingSegmentsMembery:CapSpecialtyIncorporatedMembery:InsuranceSegmentMember2022-01-012022-03-310000775368y:RsuiGroupIncorporatedMembery:InsuranceSegmentMember2021-01-012021-03-310000775368y:BerkshireHathawayIncMember2022-03-200000775368us-gaap:OperatingSegmentsMembery:ReinsuranceSegmentAndInsuranceSegmentMember2022-01-012022-03-310000775368y:LowestOfThreeRatingAgenciesBelowBBBOrNotRatedRatingMemberus-gaap:ForeignGovernmentDebtSecuritiesMember2022-03-310000775368us-gaap:FairValueInputsLevel3Memberus-gaap:ForeignCorporateDebtSecuritiesMember2021-12-310000775368y:OtherAssetBackedSecuritiesMember2022-01-012022-03-310000775368us-gaap:FairValueInputsLevel2Memberus-gaap:ForeignGovernmentDebtSecuritiesMember2022-03-310000775368us-gaap:DomesticCorporateDebtSecuritiesMemberus-gaap:FairValueInputsLevel1Member2021-12-310000775368us-gaap:OperatingSegmentsMembery:InsuranceSegmentMember2021-01-012021-03-310000775368us-gaap:CommercialMortgageBackedSecuritiesMembery:LowestOfThreeRatingAgenciesBelowBBBOrNotRatedRatingMember2022-03-310000775368us-gaap:FairValueInputsLevel2Memberus-gaap:ForeignCorporateDebtSecuritiesMember2022-03-310000775368y:AllOtherCatastropheEventsMembery:CasualtyAndSpecialtyReinsuranceSegmentsMembery:ReinsuranceSegmentMember2022-01-012022-03-310000775368y:PillarCapitalHoldingsLimitedAndManagedFundsMember2022-03-310000775368us-gaap:ForeignGovernmentDebtSecuritiesMembery:LowestOfThreeRatingAgenciesAARatingMember2022-03-310000775368us-gaap:FairValueInputsLevel2Memberus-gaap:DomesticCorporateDebtSecuritiesMember2022-03-310000775368us-gaap:OperatingSegmentsMembery:InsuranceSegmentMember2022-01-012022-03-310000775368y:COVID19GlobalPandemicMembery:ReinsuranceSegmentMembery:PropertyReinsuranceSegmentMember2021-01-012021-03-310000775368srt:AMBestAPlusPlusRatingMemberus-gaap:ReinsuranceRecoverableForPaidAndUnpaidClaimsAndClaimsAdjustmentsMembery:ChubbLtdMemberus-gaap:ReinsurerConcentrationRiskMember2022-01-012022-03-310000775368us-gaap:OperatingSegmentsMembery:IntegratedProjectServicesLLCMembery:AlleghanyCapitalCorporationSegmentMember2022-03-310000775368us-gaap:FairValueInputsLevel3Memberus-gaap:ForeignGovernmentDebtSecuritiesMember2021-12-310000775368y:LowestOfThreeRatingAgenciesAARatingMember2022-01-012022-03-310000775368us-gaap:FairValueInputsLevel1Memberus-gaap:ForeignCorporateDebtSecuritiesMember2021-12-310000775368us-gaap:ReinsuranceRecoverableForPaidAndUnpaidClaimsAndClaimsAdjustmentsMembersrt:AMBestAPlusRatingMembery:SwissReinsuranceCompanyMemberus-gaap:ReinsurerConcentrationRiskMember2022-01-012022-03-310000775368us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-01-012022-03-310000775368us-gaap:ForeignCorporateDebtSecuritiesMembery:LowestOfThreeRatingAgenciesARatingMember2022-03-310000775368y:COVID19GlobalPandemicMembery:CasualtyAndSpecialtyReinsuranceSegmentsMembery:ReinsuranceSegmentMember2022-01-012022-03-310000775368y:RsuiGroupIncorporatedMembery:InsuranceSegmentMembery:PropertyAndOtherInsuranceMember2021-01-012021-03-310000775368us-gaap:OperatingSegmentsMembery:NonIndustrialSegmentMembery:AlleghanyCapitalCorporationSegmentMember2022-01-012022-03-310000775368us-gaap:OperatingSegmentsMembery:NonIndustrialSegmentMemberus-gaap:TransferredOverTimeMembery:AlleghanyCapitalCorporationSegmentMember2021-01-012021-03-310000775368us-gaap:CorporateNonSegmentMember2021-01-012021-03-310000775368us-gaap:ForeignGovernmentDebtSecuritiesMember2022-03-310000775368us-gaap:ForeignCorporateDebtSecuritiesMember2021-12-310000775368y:LowestOfThreeRatingAgenciesAAARatingMemberus-gaap:DomesticCorporateDebtSecuritiesMember2022-03-310000775368us-gaap:OtherLongTermInvestmentsMember2022-01-012022-03-310000775368us-gaap:CommonStockMember2022-01-012022-03-310000775368us-gaap:PreferredStockMember2022-03-310000775368us-gaap:AdditionalPaidInCapitalMember2021-01-012021-03-310000775368us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2021-12-310000775368us-gaap:MunicipalBondsMemberus-gaap:FairValueInputsLevel1Member2022-03-310000775368us-gaap:OtherLongTermInvestmentsMember2022-03-310000775368us-gaap:FairValueInputsLevel2Memberus-gaap:ForeignGovernmentDebtSecuritiesMember2021-12-310000775368us-gaap:OperatingSegmentsMembery:CasualtyAndSpecialtyReinsuranceSegmentsMembery:ReinsuranceSegmentMember2022-01-012022-03-310000775368y:LowestOfThreeRatingAgenciesBelowCCRatingMember2022-03-310000775368us-gaap:TreasuryStockMember2021-03-310000775368us-gaap:ReinsuranceRecoverableForPaidAndUnpaidClaimsAndClaimsAdjustmentsMembersrt:AMBestAPlusRatingMembery:WrBerkleyCorporationMemberus-gaap:ReinsurerConcentrationRiskMember2022-01-012022-03-310000775368us-gaap:ForeignCorporateDebtSecuritiesMember2021-01-012021-03-310000775368y:NotRatedMemberus-gaap:ReinsuranceRecoverableForPaidAndUnpaidClaimsAndClaimsAdjustmentsMembery:IntegralReinsuranceLtdMemberus-gaap:ReinsurerConcentrationRiskMember2022-03-310000775368us-gaap:FairValueInputsLevel1Membery:OtherAssetBackedSecuritiesMember2021-12-310000775368y:AlleghanyCorporationMembery:AnchorbuoyLimitedAcquisitionByIntegratedProjectServicesLlcMember2021-10-142021-10-140000775368us-gaap:DomesticCorporateDebtSecuritiesMemberus-gaap:FairValueInputsLevel1Member2022-03-310000775368us-gaap:ReinsuranceRecoverableForPaidAndUnpaidClaimsAndClaimsAdjustmentsMemberus-gaap:ReinsurerConcentrationRiskMember2022-01-012022-03-310000775368y:OtherAssetBackedSecuritiesMember2020-12-310000775368us-gaap:ResidentialMortgageBackedSecuritiesMember2022-03-310000775368us-gaap:RetainedEarningsMember2020-12-310000775368y:WWSCHoldingsLLCMember2022-03-310000775368us-gaap:OperatingSegmentsMembery:ReinsuranceSegmentMember2022-03-31xbrli:purexbrli:sharesy:Investmentiso4217:USDxbrli:sharesiso4217:USDy:Segment

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

 

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

 

For the quarterly period ended March 31, 2022

 

or

 

 

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

 

For the transition period from  to

Commission File Number 1-9371

ALLEGHANY CORPORATION

(Exact Name of Registrant as Specified in its Charter)

 

Delaware

 

51-0283071

State or Other Jurisdiction of

 

I.R.S. Employer Identification No.

Incorporation or Organization

 

 

 

 

 

1411 Broadway, 34th Floor, NY, NY

 

10018

Address of Principal Executive Offices

 

Zip Code

 

212-752-1356

Registrant’s Telephone Number, Including Area Code

 

Former Name, Former Address and Former Fiscal Year, if Changed Since Last Report

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Stock, $1.00 par value

Y

New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer ☒

 

Accelerated filer ☐

 

 

 

 

 

Non-accelerated filer ☐

 

Smaller reporting company

 

 

 

 

 

Emerging growth company

 

 

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes No ☒

APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS DURING THE PRECEDING FIVE YEARS:

Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Section 12, 13 or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court. Yes ☐ No ☐

APPLICABLE ONLY TO CORPORATE ISSUERS

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

13,454,888 Shares, par value $1.00 per share, as of April 28, 2022

 


 

ALLEGHANY CORPORATION

TABLE OF CONTENTS

 

 

 

 

 

Page

PART I

 

 

ITEM 1.

 

Financial Statements

 

1

ITEM 2.

 

Management’s Discussion and Analysis of Financial Condition and Results of Operations

 

27

ITEM 3.

 

Quantitative and Qualitative Disclosures About Market Risk

 

57

ITEM 4.

 

Controls and Procedures

 

59

PART II

 

 

ITEM 1.

 

Legal Proceedings

 

60

ITEM 1A.

 

Risk Factors

 

60

ITEM 2.

 

Unregistered Sales of Equity Securities and Use of Proceeds

 

61

ITEM 6.

 

Exhibits

 

62

SIGNATURES

 

63

 


 

Part I. FINANCIAL INFORMATION

Item 1. Financial Statements.

ALLEGHANY CORPORATION AND SUBSIDIARIES

Consolidated Balance Sheets

 

 

 

 

March 31,

 

 

December 31,

 

 

 

2022

 

 

2021

 

 

 

(unaudited)

 

 

 

 

 

 

($ in thousands, except share amounts)

 

Assets

 

 

 

 

 

 

Investments:

 

 

 

 

 

 

Securities at fair value:

 

 

 

 

 

 

Equity securities (cost: 2022 – $2,400,563; 2021 – $2,552,722)

 

$

3,413,525

 

 

$

3,683,820

 

Debt securities (amortized cost: 2022 – $15,993,207; 2021 –
   $
15,727,143; allowance for credit losses: 2022 – $1,084; 2021 – $502)

 

 

15,558,624

 

 

 

16,061,560

 

Short-term investments

 

 

1,305,804

 

 

 

1,142,258

 

 

 

 

20,277,953

 

 

 

20,887,638

 

Commercial mortgage loans

 

 

462,556

 

 

 

475,860

 

Other invested assets

 

 

561,195

 

 

 

557,800

 

Total investments

 

 

21,301,704

 

 

 

21,921,298

 

Cash

 

 

993,056

 

 

 

927,966

 

Accrued investment income

 

 

93,895

 

 

 

87,610

 

Premium balances receivable

 

 

1,528,474

 

 

 

1,458,679

 

Reinsurance recoverables

 

 

2,164,653

 

 

 

2,195,975

 

Ceded unearned premiums

 

 

483,088

 

 

 

463,412

 

Deferred acquisition costs

 

 

636,654

 

 

 

586,753

 

Property and equipment at cost, net of accumulated depreciation and amortization

 

 

303,591

 

 

 

304,452

 

Goodwill

 

 

754,648

 

 

 

753,607

 

Intangible assets, net of amortization

 

 

909,420

 

 

 

924,406

 

Net deferred tax assets

 

 

104,966

 

 

 

 

Funds held under reinsurance agreements

 

 

506,005

 

 

 

634,182

 

Other assets

 

 

2,114,273

 

 

 

2,010,335

 

Total assets

 

$

31,894,427

 

 

$

32,268,675

 

 

 

 

 

 

 

 

Liabilities, Redeemable Noncontrolling Interests and Stockholders’ Equity

 

 

 

 

 

 

Loss and loss adjustment expenses

 

$

14,316,367

 

 

$

14,357,635

 

Unearned premiums

 

 

3,386,395

 

 

 

3,179,513

 

Senior notes and other debt

 

 

2,822,777

 

 

 

2,847,199

 

Reinsurance payable

 

 

360,919

 

 

 

322,902

 

Current taxes payable

 

 

63,912

 

 

 

34,297

 

Net deferred tax liabilities

 

 

 

 

 

56,958

 

Other liabilities

 

 

1,982,891

 

 

 

1,965,943

 

Total liabilities

 

 

22,933,261

 

 

 

22,764,447

 

Redeemable noncontrolling interests

 

 

365,793

 

 

 

317,346

 

Common stock (shares authorized: 2022 and 2021 – 22,000,000; shares issued:
   2022 and 2021 –
17,459,961)

 

 

17,460

 

 

 

17,460

 

Contributed capital

 

 

3,593,370

 

 

 

3,608,905

 

Accumulated other comprehensive (loss) income

 

 

(464,460

)

 

 

141,822

 

Treasury stock, at cost (2022 – 4,005,073 shares; 2021 – 3,861,426 shares)

 

 

(2,029,904

)

 

 

(1,934,531

)

Retained earnings

 

 

7,478,907

 

 

 

7,353,226

 

Total stockholders’ equity attributable to Alleghany stockholders

 

 

8,595,373

 

 

 

9,186,882

 

Total liabilities, redeemable noncontrolling interests and stockholders’ equity

 

$

31,894,427

 

 

$

32,268,675

 

 

 

 

See accompanying Notes to Unaudited Consolidated Financial Statements.

1


 

ALLEGHANY CORPORATION AND SUBSIDIARIES

Consolidated Statements of Earnings and Comprehensive Income

(unaudited)

 

 

 

Three Months Ended
March 31,

 

 

 

2022

 

 

2021

 

 

 

($ in thousands, except per share amounts)

 

Revenues

 

 

 

 

 

 

Net premiums earned

 

$

1,605,458

 

 

$

1,604,763

 

Net investment income

 

 

113,476

 

 

 

153,484

 

Change in the fair value of equity securities

 

 

(138,777

)

 

 

112,728

 

Net realized capital gains

 

 

(10,003

)

 

 

12,931

 

Change in allowance for credit losses on available for sale securities

 

 

(582

)

 

 

1,972

 

Product and service revenues

 

 

1,149,162

 

 

 

767,835

 

Total revenues

 

 

2,718,734

 

 

 

2,653,713

 

 

 

 

 

 

 

 

Costs and Expenses

 

 

 

 

 

 

Net loss and loss adjustment expenses

 

 

941,787

 

 

 

1,112,070

 

Commissions, brokerage and other underwriting expenses

 

 

477,165

 

 

 

476,036

 

Other operating expenses

 

 

1,028,892

 

 

 

723,889

 

Corporate administration

 

 

10,723

 

 

 

9,558

 

Amortization of intangible assets

 

 

14,082

 

 

 

11,478

 

Interest expense

 

 

32,110

 

 

 

23,752

 

Total costs and expenses

 

 

2,504,759

 

 

 

2,356,783

 

 

 

 

 

 

 

 

Earnings before income taxes

 

 

213,975

 

 

 

296,930

 

Income taxes

 

 

45,082

 

 

 

58,867

 

Net earnings

 

 

168,893

 

 

 

238,063

 

Net earnings attributable to noncontrolling interest

 

 

43,212

 

 

 

8,022

 

Net earnings attributable to Alleghany stockholders

 

$

125,681

 

 

$

230,041

 

 

 

 

 

 

 

 

Net earnings

 

$

168,893

 

 

$

238,063

 

Other comprehensive income (loss):

 

 

 

 

 

 

Change in unrealized gains, net of deferred taxes of ($163,282) and ($57,932)
   in 2022 and 2021, respectively

 

 

(614,251

)

 

 

(217,935

)

Less: reclassification for net realized capital gains and change in allowance
   for credit losses on available for sale securities, net of taxes of $
2,223 
   and ($
3,130) for 2022 and 2021, respectively

 

 

8,362

 

 

 

(11,773

)

Change in unrealized currency translation adjustment, net of deferred taxes
   of ($
139) and $654 for 2022 and 2021, respectively

 

 

(523

)

 

 

2,461

 

Retirement plans

 

 

130

 

 

 

(965

)

Comprehensive (loss) income

 

 

(437,389

)

 

 

9,851

 

Comprehensive income attributable to noncontrolling interests

 

 

43,212

 

 

 

8,022

 

Comprehensive (loss) income attributable to Alleghany stockholders

 

$

(480,601

)

 

$

1,829

 

 

 

 

 

 

 

 

Basic earnings per share attributable to Alleghany stockholders

 

$

9.29

 

 

$

16.44

 

Diluted earnings per share attributable to Alleghany stockholders

 

 

9.29

 

 

 

16.37

 

 

See accompanying Notes to Unaudited Consolidated Financial Statements.

 

2


 

ALLEGHANY CORPORATION AND SUBSIDIARIES

Consolidated Statements of Changes in Stockholders’ Equity

(unaudited)

 

 

 

Three Months Ended March 31, 2022

 

 

 

Common
Stock

 

 

Contributed
Capital

 

 

Accumulated
Other
Comprehensive
Income (loss)

 

 

Treasury
Stock

 

 

Retained
Earnings

 

 

Total
Stockholders'
Equity
Attributable
to Alleghany
Shareholders

 

 

Redeemable
Non-
controlling
Interest

 

 

 

($ in thousands, except share amounts)

 

Balance as of December 31, 2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(17,459,961 shares of common stock issued; 3,861,426 in treasury)

 

$

17,460

 

 

$

3,608,905

 

 

$

141,822

 

 

$

(1,934,531

)

 

$

7,353,226

 

 

$

9,186,882

 

 

$

317,346

 

Add (deduct):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net earnings

 

 

 

 

 

 

 

 

 

 

 

 

 

 

125,681

 

 

 

125,681

 

 

 

43,212

 

Other comprehensive income (loss), net of tax:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Retirement plans

 

 

 

 

 

 

 

 

130

 

 

 

 

 

 

 

 

 

130

 

 

 

 

Change in unrealized appreciation of investments, net

 

 

 

 

 

 

 

 

(605,889

)

 

 

 

 

 

 

 

 

(605,889

)

 

 

 

Change in unrealized currency translation adjustment, net

 

 

 

 

 

 

 

 

(523

)

 

 

 

 

 

 

 

 

(523

)

 

 

 

Comprehensive (loss) income

 

 

 

 

 

 

 

 

(606,282

)

 

 

 

 

 

125,681

 

 

 

(480,601

)

 

 

43,212

 

Treasury stock repurchase

 

 

 

 

 

 

 

 

 

 

 

(95,987

)

 

 

 

 

 

(95,987

)

 

 

 

Other, net

 

 

 

 

 

(15,535

)

 

 

 

 

 

614

 

 

 

 

 

 

(14,921

)

 

 

5,235

 

Balance as of March 31, 2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(17,459,961 shares of common stock issued; 4,005,073 in treasury)

 

$

17,460

 

 

$

3,593,370

 

 

$

(464,460

)

 

$

(2,029,904

)

 

$

7,478,907

 

 

$

8,595,373

 

 

$

365,793

 

 

 

 

 

 

Three Months Ended March 31, 2021

 

 

 

Common
Stock

 

 

Contributed
Capital

 

 

Accumulated
Other
Comprehensive
Income (loss)

 

 

Treasury
Stock

 

 

Retained
Earnings

 

 

Total
Stockholders'
Equity
Attributable
to Alleghany
Shareholders

 

 

Redeemable
Non-
controlling
Interest

 

 

 

($ in thousands, except share amounts)

 

Balance as of December 31, 2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(17,459,961 shares of common stock issued; 3,418,781 in treasury)

 

$

17,460

 

 

$

3,613,454

 

 

$

452,402

 

 

$

(1,645,930

)

 

$

6,318,334

 

 

$

8,755,720

 

 

$

233,809

 

Add (deduct):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net earnings

 

 

 

 

 

 

 

 

 

 

 

 

 

 

230,041

 

 

 

230,041

 

 

 

8,022

 

Other comprehensive income (loss), net of tax:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Retirement plans

 

 

 

 

 

 

 

 

(965

)

 

 

 

 

 

 

 

 

(965

)

 

 

 

Change in unrealized appreciation of investments, net

 

 

 

 

 

 

 

 

(229,708

)

 

 

 

 

 

 

 

 

(229,708

)

 

 

 

Change in unrealized currency translation adjustment, net

 

 

 

 

 

 

 

 

2,461

 

 

 

 

 

 

 

 

 

2,461

 

 

 

 

Comprehensive (loss) income

 

 

 

 

 

 

 

 

(228,212

)

 

 

 

 

 

230,041

 

 

 

1,829

 

 

 

8,022

 

Treasury stock repurchase

 

 

 

 

 

 

 

 

 

 

 

(63,192

)

 

 

 

 

 

(63,192

)

 

 

 

Other, net

 

 

 

 

 

310

 

 

 

 

 

 

1,214

 

 

 

 

 

 

1,524

 

 

 

(8,268

)

Balance as of March 31, 2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(17,459,961 shares of common stock issued; 3,519,292 in treasury)

 

$

17,460

 

 

$

3,613,764

 

 

$

224,190

 

 

$

(1,707,908

)

 

$

6,548,375

 

 

$

8,695,881

 

 

$

233,563

 

 

See accompanying Notes to Unaudited Consolidated Financial Statements.

3


 

ALLEGHANY CORPORATION AND SUBSIDIARIES

Consolidated Statements of Cash Flows

(unaudited)

 

 

 

Three Months Ended
March 31,

 

 

 

2022

 

 

2021

 

 

 

($ in thousands)

 

Cash flows from operating activities

 

 

 

 

 

 

Net earnings

 

$

168,893

 

 

$