0000775368five-year--12-31—Q2P2Y11.167P3Y—1,149,986ALLEGHANY CORP /DE20,1482,178,87811.167false739,5920000775368us-gaap:CommonStockMember2022-06-300000775368y:LowestOfThreeRatingAgenciesBelowCCRatingMember2022-06-300000775368us-gaap:OperatingSegmentsMembery:KentuckyTrailerMembery:AlleghanyCapitalCorporationSegmentMember2022-06-300000775368us-gaap:CommercialMortgageBackedSecuritiesMembery:LowestOfThreeRatingAgenciesAAARatingMember2022-06-300000775368y:AllOtherCatastropheEventsMembery:ReinsuranceSegmentMembery:PropertyReinsuranceSegmentMember2021-01-012021-06-300000775368y:AnchorbuoyLimitedAcquisitionByIntegratedProjectServicesLlcMember2021-10-140000775368us-gaap:DomesticCorporateDebtSecuritiesMember2022-06-300000775368y:LowestOfThreeRatingAgenciesAAARatingMember2022-06-3000007753682022-03-310000775368us-gaap:CollateralizedLoanObligationsMembery:OtherAssetBackedSecuritiesMember2021-12-310000775368us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-01-012021-06-300000775368us-gaap:CommonStockMember2021-04-012021-06-300000775368us-gaap:FairValueInputsLevel1Memberus-gaap:PreferredStockMember2022-06-300000775368us-gaap:OperatingSegmentsMembery:NonIndustrialSegmentMemberus-gaap:TransferredOverTimeMembery:AlleghanyCapitalCorporationSegmentMember2022-04-012022-06-300000775368us-gaap:FairValueInputsLevel1Membery:OtherAssetBackedSecuritiesMember2021-12-310000775368y:OtherAssetBackedSecuritiesMember2021-12-310000775368us-gaap:CommonStockMember2021-03-310000775368us-gaap:TreasuryStockMember2021-01-012021-03-310000775368us-gaap:ReinsuranceRecoverableForPaidAndUnpaidClaimsAndClaimsAdjustmentsMembersrt:AMBestARatingMembery:LloydsOfLondonMemberus-gaap:ReinsurerConcentrationRiskMember2022-06-300000775368y:NotRatedMemberus-gaap:ReinsuranceRecoverableForPaidAndUnpaidClaimsAndClaimsAdjustmentsMembery:KaneSACLtdRondoutSegregatedAccountMemberus-gaap:ReinsurerConcentrationRiskMember2022-01-012022-06-300000775368y:AllOtherCatastropheEventsMembery:CasualtyAndSpecialtyReinsuranceSegmentsMembery:ReinsuranceSegmentMember2022-01-012022-06-300000775368us-gaap:OperatingSegmentsMembery:CasualtyAndSpecialtyReinsuranceSegmentsMembery:ReinsuranceSegmentMember2022-04-012022-06-300000775368us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2022-06-300000775368us-gaap:FairValueInputsLevel3Memberus-gaap:ResidentialMortgageBackedSecuritiesMember2021-12-310000775368us-gaap:ShortTermInvestmentsMemberus-gaap:FairValueInputsLevel3Member2021-12-310000775368us-gaap:CommercialMortgageBackedSecuritiesMember2022-01-012022-06-300000775368y:AllOtherCatastropheEventsMembery:ReinsuranceSegmentMembery:PropertyReinsuranceSegmentMember2022-04-012022-06-300000775368y:StockRepurchaseProgramsTwentyNineteenMember2019-09-3000007753682022-06-300000775368us-gaap:ReinsuranceRecoverableForPaidAndUnpaidClaimsAndClaimsAdjustmentsMembersrt:AMBestAPlusPlusRatingMembery:ChubbLtdMemberus-gaap:ReinsurerConcentrationRiskMember2022-06-300000775368us-gaap:AdditionalPaidInCapitalMember2020-12-310000775368us-gaap:FairValueInputsLevel1Memberus-gaap:ResidentialMortgageBackedSecuritiesMember2021-12-310000775368y:NotRatedMemberus-gaap:ReinsuranceRecoverableForPaidAndUnpaidClaimsAndClaimsAdjustmentsMembery:KaneSACLtdRondoutSegregatedAccountMemberus-gaap:ReinsurerConcentrationRiskMember2022-06-300000775368us-gaap:RetainedEarningsMember2021-12-310000775368us-gaap:OperatingSegmentsMembery:ReinsuranceSegmentMember2022-06-300000775368y:LowestOfThreeRatingAgenciesBBBRatingMember2022-06-300000775368y:PropertyReinsuranceSegmentMembery:ReinsuranceSegmentMember2021-01-012021-06-300000775368us-gaap:ForeignGovernmentDebtSecuritiesMembery:LowestOfThreeRatingAgenciesARatingMember2022-06-300000775368y:OtherAssetBackedSecuritiesMember2021-01-012021-06-300000775368us-gaap:AccumulatedTranslationAdjustmentMember2022-06-300000775368us-gaap:FairValueInputsLevel2Memberus-gaap:MunicipalBondsMember2021-12-310000775368us-gaap:OperatingSegmentsMembery:CasualtyAndSpecialtyReinsuranceSegmentsMembery:ReinsuranceSegmentMember2022-01-012022-06-300000775368srt:MinimumMember2022-01-012022-06-300000775368us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2021-01-012021-06-300000775368us-gaap:ForeignCorporateDebtSecuritiesMember2020-12-310000775368us-gaap:RetainedEarningsMember2021-01-012021-03-310000775368us-gaap:MunicipalBondsMemberus-gaap:FairValueInputsLevel3Member2021-12-310000775368y:WWSCHoldingsLLCMember2022-06-300000775368us-gaap:AdditionalPaidInCapitalMember2021-04-012021-06-300000775368us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2021-04-012021-06-300000775368us-gaap:OperatingSegmentsMembery:AlleghanyCapitalCorporationSegmentMember2021-04-012021-06-300000775368y:CapSpecialtyIncorporatedMembery:InsuranceSegmentMember2022-04-012022-06-300000775368us-gaap:OperatingSegmentsMembery:IntegratedProjectServicesLLCMembery:AlleghanyCapitalCorporationSegmentMember2022-06-300000775368us-gaap:TreasuryStockMember2022-04-012022-06-300000775368us-gaap:ForeignCorporateDebtSecuritiesMembery:LowestOfThreeRatingAgenciesAARatingMember2022-06-300000775368us-gaap:CommercialMortgageBackedSecuritiesMember2020-12-310000775368y:RsuiGroupIncorporatedMembery:CasualtyInsuranceMembery:InsuranceSegmentMember2022-04-012022-06-300000775368us-gaap:USTreasurySecuritiesMembery:LowestOfThreeRatingAgenciesBBBRatingMember2022-06-300000775368srt:MaximumMember2022-01-012022-06-300000775368us-gaap:OperatingSegmentsMembery:NonIndustrialSegmentMemberus-gaap:TransferredOverTimeMembery:AlleghanyCapitalCorporationSegmentMember2021-01-012021-06-300000775368us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2020-12-310000775368us-gaap:ResidentialMortgageBackedSecuritiesMember2020-12-310000775368us-gaap:ReinsuranceRecoverableForPaidAndUnpaidClaimsAndClaimsAdjustmentsMembersrt:AMBestAPlusRatingMembery:SwissReinsuranceCompanyMemberus-gaap:ReinsurerConcentrationRiskMember2022-06-300000775368us-gaap:FairValueInputsLevel2Memberus-gaap:ForeignCorporateDebtSecuritiesMember2021-12-310000775368us-gaap:AccumulatedTranslationAdjustmentMember2022-01-012022-06-300000775368us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-12-310000775368us-gaap:FairValueInputsLevel2Memberus-gaap:ResidentialMortgageBackedSecuritiesMember2022-06-300000775368us-gaap:PreferredStockMember2022-06-3000007753682021-01-012021-06-300000775368us-gaap:FairValueInputsLevel1Memberus-gaap:ResidentialMortgageBackedSecuritiesMember2022-06-300000775368us-gaap:PreferredStockMember2021-01-012021-06-300000775368y:RsuiGroupIncorporatedMembery:InsuranceSegmentMember2021-04-012021-06-300000775368y:CasualtyAndSpecialtyReinsuranceSegmentsMembery:ReinsuranceSegmentMembery:NoncatastropheMember2021-04-012021-06-300000775368us-gaap:OperatingSegmentsMembery:InsuranceSegmentMember2022-06-300000775368y:ReinsuranceSegmentMembery:PropertyReinsuranceSegmentMembery:NoncatastropheMember2022-04-012022-06-300000775368us-gaap:CommonStockMember2022-01-012022-03-310000775368y:IntegratedProjectServicesLLCMember2022-06-300000775368us-gaap:DomesticCorporateDebtSecuritiesMembery:LowestOfThreeRatingAgenciesBelowBBBOrNotRatedRatingMember2022-06-300000775368us-gaap:OperatingSegmentsMembery:AlleghanyCapitalCorporationSegmentMember2022-04-012022-06-300000775368us-gaap:CommonStockMember2022-04-012022-06-300000775368us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2021-01-012021-06-300000775368y:COVID19GlobalPandemicMembery:ReinsuranceSegmentMembery:PropertyReinsuranceSegmentMember2022-01-012022-06-300000775368us-gaap:OperatingSegmentsMembery:CasualtyAndSpecialtyReinsuranceSegmentsMembery:ReinsuranceSegmentMember2021-04-012021-06-300000775368us-gaap:ForeignCorporateDebtSecuritiesMemberus-gaap:FairValueInputsLevel3Member2022-06-300000775368y:PillarCapitalHoldingsLimitedAndManagedFundsMember2022-06-300000775368us-gaap:OperatingSegmentsMembery:ReinsuranceSegmentMembery:PropertyReinsuranceSegmentMember2022-01-012022-06-300000775368us-gaap:MunicipalBondsMembery:LowestOfThreeRatingAgenciesARatingMember2022-06-300000775368us-gaap:ReinsuranceRecoverableForPaidAndUnpaidClaimsAndClaimsAdjustmentsMembersrt:AMBestAPlusRatingMembery:SwissReinsuranceCompanyMemberus-gaap:ReinsurerConcentrationRiskMember2022-01-012022-06-300000775368us-gaap:FairValueInputsLevel1Memberus-gaap:ForeignGovernmentDebtSecuritiesMember2022-06-300000775368us-gaap:OperatingSegmentsMembery:RsuiGroupIncorporatedMembery:InsuranceSegmentMember2022-01-012022-06-300000775368us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2022-01-012022-06-300000775368y:ReinsuranceSegmentMembery:PropertyReinsuranceSegmentMember2022-04-012022-06-300000775368us-gaap:USTreasurySecuritiesMember2021-12-310000775368y:RsuiGroupIncorporatedMembery:InsuranceSegmentMembery:PropertyAndOtherInsuranceMember2022-04-012022-06-300000775368us-gaap:FairValueInputsLevel2Memberus-gaap:ResidentialMortgageBackedSecuritiesMember2021-12-310000775368us-gaap:FairValueInputsLevel2Memberus-gaap:USTreasurySecuritiesMember2022-06-300000775368us-gaap:FairValueInputsLevel2Membery:OtherAssetBackedSecuritiesMember2022-06-300000775368y:CapSpecialtyIncorporatedMembery:InsuranceSegmentMember2021-04-012021-06-300000775368y:ReinsuranceSegmentMember2021-01-012021-06-300000775368us-gaap:DomesticCorporateDebtSecuritiesMember2021-12-3100007753682021-01-012021-03-310000775368us-gaap:CededCreditRiskSecuredMemberus-gaap:ReinsuranceRecoverableForPaidAndUnpaidClaimsAndClaimsAdjustmentsMemberus-gaap:ReinsurerConcentrationRiskMember2022-06-300000775368us-gaap:ReinsuranceRecoverableForPaidAndUnpaidClaimsAndClaimsAdjustmentsMemberus-gaap:ReinsurerConcentrationRiskMember2022-01-012022-06-300000775368us-gaap:CommercialMortgageBackedSecuritiesMember2021-06-300000775368y:KentuckyTrailerMember2022-06-300000775368y:COVID19GlobalPandemicMembery:CasualtyAndSpecialtyReinsuranceSegmentsMembery:ReinsuranceSegmentMember2021-04-012021-06-300000775368us-gaap:DomesticCorporateDebtSecuritiesMemberus-gaap:FairValueInputsLevel3Member2022-06-300000775368y:PropertyReinsuranceSegmentMembery:ReinsuranceSegmentMember2022-01-012022-06-300000775368y:SeniorNotesDueTwentyTwentyTwoMembery:AlleghanyCorporationMember2022-01-012022-06-300000775368us-gaap:ForeignCorporateDebtSecuritiesMember2021-01-012021-06-300000775368us-gaap:OperatingSegmentsMembery:NonIndustrialSegmentMembery:AlleghanyCapitalCorporationSegmentMember2021-01-012021-06-300000775368us-gaap:TreasuryStockMember2021-03-310000775368us-gaap:OperatingSegmentsMembery:AlleghanyCapitalCorporationSegmentMember2021-01-012021-06-300000775368us-gaap:DebtSecuritiesMember2022-06-300000775368y:AllOtherCatastropheEventsMembery:CasualtyAndSpecialtyReinsuranceSegmentsMembery:ReinsuranceSegmentMember2022-04-012022-06-300000775368us-gaap:FairValueInputsLevel1Member2021-12-310000775368us-gaap:ReinsuranceRecoverableForPaidAndUnpaidClaimsAndClaimsAdjustmentsMembery:RenaissanceReHoldingsLimitedMembersrt:AMBestAPlusRatingMemberus-gaap:ReinsurerConcentrationRiskMember2022-01-012022-06-300000775368y:ReinsuranceSegmentMember2022-01-012022-06-300000775368us-gaap:FairValueInputsLevel2Memberus-gaap:CommercialMortgageBackedSecuritiesMember2021-12-310000775368us-gaap:OperatingSegmentsMember2021-04-012021-06-300000775368us-gaap:OperatingSegmentsMembery:RsuiGroupIncorporatedMembery:InsuranceSegmentMember2021-01-012021-06-300000775368us-gaap:OperatingSegmentsMembery:InsuranceSegmentMember2021-04-012021-06-300000775368us-gaap:FairValueInputsLevel2Memberus-gaap:ForeignCorporateDebtSecuritiesMember2022-06-300000775368us-gaap:CommercialMortgageBackedSecuritiesMembery:LowestOfThreeRatingAgenciesARatingMember2022-06-300000775368us-gaap:USTreasurySecuritiesMembery:LowestOfThreeRatingAgenciesAAARatingMember2022-06-300000775368y:LowestOfThreeRatingAgenciesBelowBBBOrNotRatedRatingMemberus-gaap:ForeignGovernmentDebtSecuritiesMember2022-06-300000775368us-gaap:FairValueInputsLevel1Memberus-gaap:ForeignCorporateDebtSecuritiesMember2022-06-300000775368us-gaap:MunicipalBondsMembery:LowestOfThreeRatingAgenciesBBBRatingMember2022-06-300000775368us-gaap:CommercialMortgageBackedSecuritiesMemberus-gaap:FairValueInputsLevel3Member2022-06-300000775368us-gaap:DomesticCorporateDebtSecuritiesMembery:LowestOfThreeRatingAgenciesARatingMember2022-06-300000775368us-gaap:RetainedEarningsMember2021-04-012021-06-300000775368us-gaap:ForeignCorporateDebtSecuritiesMember2021-06-300000775368us-gaap:DomesticCorporateDebtSecuritiesMembery:LowestOfThreeRatingAgenciesBBBRatingMember2022-06-300000775368us-gaap:ShortTermInvestmentsMember2022-06-300000775368y:RsuiGroupIncorporatedMembery:CasualtyInsuranceMembery:InsuranceSegmentMember2021-04-012021-06-300000775368us-gaap:FairValueInputsLevel2Membery:OtherAssetBackedSecuritiesMember2021-12-310000775368us-gaap:DomesticCorporateDebtSecuritiesMemberus-gaap:FairValueInputsLevel3Member2021-12-310000775368us-gaap:CarryingReportedAmountFairValueDisclosureMember2022-06-300000775368us-gaap:USTreasurySecuritiesMemberus-gaap:FairValueInputsLevel3Member2022-06-300000775368y:LowestOfThreeRatingAgenciesBBBRatingMember2022-01-012022-06-300000775368us-gaap:USTreasurySecuritiesMember2022-06-300000775368us-gaap:ReinsuranceRecoverableForPaidAndUnpaidClaimsAndClaimsAdjustmentsMembersrt:AMBestARatingMembery:FairfaxFinancialHoldingsLimitedMemberus-gaap:ReinsurerConcentrationRiskMember2022-06-300000775368y:HotelDevelopmentProjectsMember2022-06-300000775368y:RsuiGroupIncorporatedMembery:InsuranceSegmentMember2021-01-012021-06-300000775368us-gaap:ResidentialMortgageBackedSecuritiesMember2022-06-300000775368us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-03-310000775368us-gaap:FairValueInputsLevel2Member2021-12-310000775368y:NotRatedMemberus-gaap:ReinsuranceRecoverableForPaidAndUnpaidClaimsAndClaimsAdjustmentsMembery:StoneRidgeHoldingGroupMemberus-gaap:ReinsurerConcentrationRiskMember2022-01-012022-06-300000775368y:LowestOfThreeRatingAgenciesNotRatedMember2022-06-300000775368us-gaap:OperatingSegmentsMembery:WilbertFuneralServicesIncMembery:AlleghanyCapitalCorporationSegmentMember2022-06-300000775368y:RsuiGroupIncorporatedMembery:InsuranceSegmentMembery:PropertyAndOtherInsuranceMember2022-01-012022-06-300000775368us-gaap:CommercialMortgageBackedSecuritiesMember2021-01-012021-06-300000775368y:NotRatedMemberus-gaap:ReinsuranceRecoverableForPaidAndUnpaidClaimsAndClaimsAdjustmentsMemberus-gaap:ReinsurerConcentrationRiskMembery:IntegralReinsuranceLtdMember2022-06-300000775368y:RsuiGroupIncorporatedMembery:InsuranceSegmentMembery:PropertyAndOtherInsuranceMember2021-04-012021-06-300000775368us-gaap:RetainedEarningsMember2022-01-012022-03-310000775368us-gaap:PreferredStockMemberus-gaap:FairValueInputsLevel3Member2022-06-300000775368us-gaap:OperatingSegmentsMembery:InsuranceSegmentMember2022-01-012022-06-300000775368us-gaap:CededCreditRiskSecuredMemberus-gaap:ReinsuranceRecoverableForPaidAndUnpaidClaimsAndClaimsAdjustmentsMemberus-gaap:ReinsurerConcentrationRiskMember2022-01-012022-06-300000775368us-gaap:FairValueInputsLevel2Member2022-06-300000775368us-gaap:TreasuryStockMember2020-12-310000775368us-gaap:OperatingSegmentsMembery:AlleghanyCapitalCorporationSegmentMember2021-12-310000775368us-gaap:MunicipalBondsMemberus-gaap:FairValueInputsLevel1Member2022-06-300000775368us-gaap:ForeignGovernmentDebtSecuritiesMember2022-06-300000775368y:PropertyReinsuranceSegmentMembery:ReinsuranceSegmentMembery:NoncatastropheMember2021-01-012021-06-300000775368y:LowestOfThreeRatingAgenciesAARatingMember2022-01-012022-06-300000775368us-gaap:FairValueInputsLevel3Memberus-gaap:ForeignGovernmentDebtSecuritiesMember2021-12-310000775368y:ReinsuranceSegmentMembery:PropertyReinsuranceSegmentMembery:NoncatastropheMember2022-01-012022-06-300000775368y:LowestOfThreeRatingAgenciesBelowBBBOrNotRatedRatingMemberus-gaap:ResidentialMortgageBackedSecuritiesMember2022-06-300000775368us-gaap:DomesticCorporateDebtSecuritiesMemberus-gaap:FairValueInputsLevel1Member2022-06-300000775368us-gaap:CommercialMortgageBackedSecuritiesMember2021-12-310000775368us-gaap:FairValueInputsLevel1Memberus-gaap:ForeignGovernmentDebtSecuritiesMember2021-12-310000775368y:CasualtyAndSpecialtyReinsuranceSegmentsMembery:ReinsuranceSegmentMember2022-01-012022-06-300000775368y:WWSCHoldingsLLCMemberus-gaap:OperatingSegmentsMembery:AlleghanyCapitalCorporationSegmentMember2022-06-300000775368us-gaap:ForeignCorporateDebtSecuritiesMember2021-12-310000775368us-gaap:ForeignCorporateDebtSecuritiesMember2022-01-012022-06-300000775368us-gaap:DomesticCorporateDebtSecuritiesMember2022-01-012022-06-300000775368us-gaap:OperatingSegmentsMembery:AlleghanyCapitalCorporationSegmentMember2022-06-300000775368us-gaap:AdditionalPaidInCapitalMember2021-03-310000775368us-gaap:AccumulatedTranslationAdjustmentMember2020-12-310000775368us-gaap:MunicipalBondsMembery:LowestOfThreeRatingAgenciesAARatingMember2022-06-300000775368us-gaap:AccumulatedTranslationAdjustmentMember2021-06-300000775368y:RsuiGroupIncorporatedMembery:InsuranceSegmentMembery:PropertyAndOtherInsuranceMember2021-01-012021-06-300000775368y:OtherAssetBackedSecuritiesMembery:LowestOfThreeRatingAgenciesAARatingMember2022-06-300000775368us-gaap:ForeignGovernmentDebtSecuritiesMembery:LowestOfThreeRatingAgenciesAARatingMember2022-06-300000775368y:TradeNamesAndTradeMarksMembery:AnchorbuoyLimitedAcquisitionByIntegratedProjectServicesLlcMember2021-10-140000775368y:LowestOfThreeRatingAgenciesCCCRatingMember2022-06-300000775368srt:MaximumMembery:ReinsuranceSegmentMember2022-01-012022-06-300000775368us-gaap:OperatingSegmentsMembery:ReinsuranceSegmentAndInsuranceSegmentMember2022-01-012022-06-300000775368us-gaap:OtherLongTermInvestmentsMember2020-12-310000775368us-gaap:OtherLongTermInvestmentsMember2021-01-012021-06-300000775368us-gaap:MunicipalBondsMemberus-gaap:FairValueInputsLevel1Member2021-12-310000775368us-gaap:ForeignGovernmentDebtSecuritiesMember2021-12-310000775368y:CapSpecialtyIncorporatedMembery:InsuranceSegmentMember2021-01-012021-06-300000775368us-gaap:ReinsuranceRecoverableForPaidAndUnpaidClaimsAndClaimsAdjustmentsMembersrt:AMBestAPlusRatingMembery:RenaissanceReHoldingsLimitedMemberus-gaap:ReinsurerConcentrationRiskMember2022-06-300000775368us-gaap:OperatingSegmentsMembery:JazwaresLimitedLiabilityCompanyMembery:AlleghanyCapitalCorporationSegmentMember2022-06-300000775368us-gaap:CorporateNonSegmentMember2022-04-012022-06-300000775368us-gaap:MunicipalBondsMember2022-06-300000775368us-gaap:OperatingSegmentsMembery:NonIndustrialSegmentMembery:AlleghanyCapitalCorporationSegmentMember2022-01-012022-06-300000775368y:BerkshireHathawayIncMember2022-03-200000775368us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2021-12-310000775368us-gaap:PreferredStockMemberus-gaap:FairValueInputsLevel3Member2021-12-310000775368us-gaap:CommonStockMember2021-12-310000775368us-gaap:ForeignCorporateDebtSecuritiesMemberus-gaap:FairValueInputsLevel3Member2021-12-310000775368us-gaap:OtherLongTermInvestmentsMember2022-06-300000775368y:JazwaresLimitedLiabilityCompanyMember2022-06-300000775368y:AllOtherCatastropheEventsMembery:ReinsuranceSegmentMembery:PropertyReinsuranceSegmentMember2022-01-012022-06-300000775368y:CasualtyAndSpecialtyReinsuranceSegmentsMembery:ReinsuranceSegmentMembery:NoncatastropheMember2022-01-012022-06-300000775368y:AllOtherCatastropheEventsMembery:CasualtyAndSpecialtyReinsuranceSegmentsMembery:ReinsuranceSegmentMember2021-04-012021-06-300000775368us-gaap:FairValueInputsLevel1Member2022-06-300000775368us-gaap:OperatingSegmentsMembery:ReinsuranceSegmentMember2021-04-012021-06-300000775368y:IndustrialSegmentMemberus-gaap:OperatingSegmentsMembery:AlleghanyCapitalCorporationSegmentMember2022-01-012022-06-300000775368us-gaap:OperatingSegmentsMembery:CapSpecialtyIncorporatedMembery:InsuranceSegmentMember2022-04-012022-06-300000775368us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2021-01-012021-06-300000775368us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-01-012021-03-310000775368us-gaap:OperatingSegmentsMembery:InsuranceSegmentMember2022-04-012022-06-300000775368us-gaap:OperatingSegmentsMembery:CasualtyAndSpecialtyReinsuranceSegmentsMembery:ReinsuranceSegmentMember2021-01-012021-06-300000775368y:OtherAssetBackedSecuritiesMember2020-12-310000775368us-gaap:FairValueInputsLevel1Memberus-gaap:PreferredStockMember2021-12-310000775368us-gaap:MunicipalBondsMembery:LowestOfThreeRatingAgenciesBelowBBBOrNotRatedRatingMember2022-06-300000775368us-gaap:CommercialMortgageBackedSecuritiesMembery:LowestOfThreeRatingAgenciesBelowBBBOrNotRatedRatingMember2022-06-300000775368us-gaap:FairValueInputsLevel1Memberus-gaap:ShortTermInvestmentsMember2022-06-300000775368y:LowestOfThreeRatingAgenciesBelowBBBOrNotRatedRatingMember2022-06-300000775368us-gaap:RevolvingCreditFacilityMembery:AlleghanyCorporationMember2017-07-312017-07-310000775368us-gaap:TreasuryStockMember2022-03-310000775368us-gaap:MunicipalBondsMemberus-gaap:FairValueInputsLevel3Member2022-06-300000775368us-gaap:OperatingSegmentsMembery:PropertyReinsuranceSegmentMembery:ReinsuranceSegmentMember2022-04-012022-06-300000775368y:COVID19GlobalPandemicMembery:CasualtyAndSpecialtyReinsuranceSegmentsMembery:ReinsuranceSegmentMember2022-01-012022-06-300000775368y:CasualtyAndSpecialtyReinsuranceSegmentsMembery:ReinsuranceSegmentMembery:NoncatastropheMember2021-01-012021-06-300000775368us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2020-12-310000775368us-gaap:AccumulatedTranslationAdjustmentMember2021-01-012021-06-300000775368y:IntegratedProjectServicesLLCMember2021-10-130000775368us-gaap:OperatingSegmentsMembery:CapSpecialtyIncorporatedMembery:InsuranceSegmentMember2021-01-012021-06-300000775368us-gaap:USTreasurySecuritiesMemberus-gaap:FairValueInputsLevel1Member2022-06-300000775368us-gaap:DomesticCorporateDebtSecuritiesMemberus-gaap:FairValueInputsLevel1Member2021-12-310000775368us-gaap:FairValueInputsLevel2Memberus-gaap:ForeignGovernmentDebtSecuritiesMember2022-06-300000775368y:COVID19GlobalPandemicMembery:CasualtyAndSpecialtyReinsuranceSegmentsMembery:ReinsuranceSegmentMember2022-04-012022-06-300000775368y:LowestOfThreeRatingAgenciesCCRatingMember2022-06-300000775368us-gaap:OperatingSegmentsMembery:ReinsuranceSegmentMember2021-01-012021-06-300000775368y:IndustrialSegmentMemberus-gaap:OperatingSegmentsMembery:AlleghanyCapitalCorporationSegmentMember2021-04-012021-06-300000775368us-gaap:DomesticCorporateDebtSecuritiesMember2021-06-300000775368us-gaap:USTreasurySecuritiesMembery:LowestOfThreeRatingAgenciesBelowBBBOrNotRatedRatingMember2022-06-300000775368us-gaap:ReinsuranceRecoverableForPaidAndUnpaidClaimsAndClaimsAdjustmentsMembersrt:AMBestAPlusRatingMembery:WrBerkleyCorporationMemberus-gaap:ReinsurerConcentrationRiskMember2022-01-012022-06-300000775368us-gaap:OperatingSegmentsMembery:FloatingRateDebtFundedByAlleghanyCorporationMembery:ConcordMembery:AlleghanyCapitalCorporationSegmentMember2022-06-300000775368us-gaap:RetainedEarningsMember2021-06-3000007753682022-07-280000775368y:COVID19GlobalPandemicMembery:ReinsuranceSegmentMembery:PropertyReinsuranceSegmentMember2021-01-012021-06-300000775368y:ConcordMember2022-06-300000775368y:OtherAssetBackedSecuritiesMemberus-gaap:FairValueInputsLevel3Member2021-12-310000775368us-gaap:CustomerRelationshipsMembery:AnchorbuoyLimitedAcquisitionByIntegratedProjectServicesLlcMember2021-10-140000775368us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2022-04-012022-06-300000775368us-gaap:RevolvingCreditFacilityMembery:AlleghanyCorporationMember2017-07-310000775368us-gaap:CommonStockMember2021-06-300000775368us-gaap:ReinsuranceRecoverableForPaidAndUnpaidClaimsAndClaimsAdjustmentsMembersrt:AMBestARatingMembery:LloydsOfLondonMemberus-gaap:ReinsurerConcentrationRiskMember2022-01-012022-06-300000775368us-gaap:RevolvingCreditFacilityMembery:AlleghanyCorporationMember2022-06-222022-06-220000775368y:LowestOfThreeRatingAgenciesAAARatingMemberus-gaap:DomesticCorporateDebtSecuritiesMember2022-06-300000775368y:SeniorNotesDueTwentyTwentyTwoMembery:AlleghanyCorporationMember2012-06-262012-06-260000775368us-gaap:FairValueInputsLevel2Memberus-gaap:PreferredStockMember2021-12-310000775368us-gaap:CommonStockMemberus-gaap:FairValueInputsLevel1Member2022-06-300000775368y:CasualtyAndSpecialtyReinsuranceSegmentsMembery:ReinsuranceSegmentMember2021-01-012021-06-300000775368us-gaap:TreasuryStockMember2022-01-012022-03-310000775368us-gaap:CommonStockMember2022-06-300000775368y:CapSpecialtyIncorporatedMembery:InsuranceSegmentMember2022-01-012022-06-3000007753682021-12-310000775368us-gaap:OperatingSegmentsMembery:ReinsuranceSegmentAndInsuranceSegmentMember2022-04-012022-06-300000775368us-gaap:AdditionalPaidInCapitalMember2022-04-012022-06-300000775368us-gaap:FairValueInputsLevel2Memberus-gaap:DomesticCorporateDebtSecuritiesMember2021-12-310000775368us-gaap:CommonStockMember2021-01-012021-03-310000775368us-gaap:CommercialMortgageBackedSecuritiesMembery:LowestOfThreeRatingAgenciesAARatingMember2022-06-300000775368us-gaap:USTreasurySecuritiesMembery:LowestOfThreeRatingAgenciesAARatingMember2022-06-300000775368us-gaap:CommonStockMember2020-12-310000775368us-gaap:ForeignGovernmentDebtSecuritiesMembery:LowestOfThreeRatingAgenciesBBBRatingMember2022-06-300000775368us-gaap:RevolvingCreditFacilityMembery:AlleghanyCorporationMember2022-01-012022-06-300000775368y:IntegratedProjectServicesLLCMember2021-10-140000775368us-gaap:DomesticCorporateDebtSecuritiesMembery:LowestOfThreeRatingAgenciesAARatingMember2022-06-300000775368us-gaap:ReinsuranceRecoverableForPaidAndUnpaidClaimsAndClaimsAdjustmentsMembersrt:AMBestAPlusRatingMembery:PartnerReLimitedMemberus-gaap:ReinsurerConcentrationRiskMember2022-01-012022-06-300000775368us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2021-12-310000775368us-gaap:FairValueInputsLevel2Memberus-gaap:PreferredStockMember2022-06-300000775368us-gaap:FairValueInputsLevel2Memberus-gaap:USTreasurySecuritiesMember2021-12-3100007753682021-06-300000775368us-gaap:USTreasurySecuritiesMembery:LowestOfThreeRatingAgenciesARatingMember2022-06-300000775368y:IndustrialSegmentMemberus-gaap:OperatingSegmentsMembery:AlleghanyCapitalCorporationSegmentMember2021-01-012021-06-300000775368y:OtherAssetBackedSecuritiesMemberus-gaap:FairValueInputsLevel3Member2022-06-300000775368us-gaap:FairValueInputsLevel1Membery:OtherAssetBackedSecuritiesMember2022-06-300000775368us-gaap:AdditionalPaidInCapitalMember2022-01-012022-03-310000775368us-gaap:OperatingSegmentsMember2021-01-012021-06-3000007753682022-01-012022-03-310000775368us-gaap:PreferredStockMember2022-01-012022-06-300000775368y:NotRatedMemberus-gaap:ReinsuranceRecoverableForPaidAndUnpaidClaimsAndClaimsAdjustmentsMemberus-gaap:ReinsurerConcentrationRiskMembery:IntegralReinsuranceLtdMember2022-01-012022-06-300000775368us-gaap:USTreasurySecuritiesMemberus-gaap:FairValueInputsLevel3Member2021-12-310000775368y:COVID19GlobalPandemicMembery:CasualtyAndSpecialtyReinsuranceSegmentsMembery:ReinsuranceSegmentMember2021-01-012021-06-300000775368us-gaap:OperatingSegmentsMembery:ReinsuranceSegmentMember2022-04-012022-06-300000775368us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2021-06-300000775368us-gaap:CarryingReportedAmountFairValueDisclosureMember2021-12-3100007753682021-03-310000775368us-gaap:CollateralizedLoanObligationsMembery:OtherAssetBackedSecuritiesMember2022-06-300000775368us-gaap:FairValueInputsLevel3Member2021-12-310000775368us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-12-310000775368us-gaap:RetainedEarningsMember2021-03-310000775368us-gaap:AdditionalPaidInCapitalMember2021-12-310000775368us-gaap:ResidentialMortgageBackedSecuritiesMember2022-01-012022-06-300000775368y:LowestOfThreeRatingAgenciesAAARatingMember2022-01-012022-06-300000775368us-gaap:RetainedEarningsMember2020-12-310000775368us-gaap:ShortTermInvestmentsMember2021-12-310000775368us-gaap:MunicipalBondsMember2021-12-310000775368us-gaap:FairValueInputsLevel3Member2022-06-300000775368us-gaap:FairValueInputsLevel1Memberus-gaap:ForeignCorporateDebtSecuritiesMember2021-12-310000775368us-gaap:AdditionalPaidInCapitalMember2022-03-310000775368us-gaap:CommercialMortgageBackedSecuritiesMemberus-gaap:FairValueInputsLevel1Member2021-12-310000775368us-gaap:OperatingSegmentsMembery:NonIndustrialSegmentMemberus-gaap:TransferredOverTimeMembery:AlleghanyCapitalCorporationSegmentMember2021-04-012021-06-300000775368us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-03-310000775368us-gaap:CommercialMortgageBackedSecuritiesMember2022-06-300000775368us-gaap:ResidentialMortgageBackedSecuritiesMembery:LowestOfThreeRatingAgenciesBBBRatingMember2022-06-300000775368us-gaap:ReinsuranceRecoverableForPaidAndUnpaidClaimsAndClaimsAdjustmentsMembery:OtherReinsurersMemberus-gaap:ReinsurerConcentrationRiskMember2022-06-300000775368us-gaap:OperatingSegmentsMember2022-04-012022-06-300000775368us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-06-300000775368us-gaap:PreferredStockMember2021-12-310000775368us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2022-06-300000775368us-gaap:CommonStockMemberus-gaap:FairValueInputsLevel2Member2022-06-300000775368us-gaap:CommonStockMember2022-03-310000775368y:OtherAssetBackedSecuritiesMember2021-06-300000775368us-gaap:ForeignCorporateDebtSecuritiesMember2022-06-300000775368us-gaap:ResidentialMortgageBackedSecuritiesMember2021-06-300000775368us-gaap:CommercialMortgageBackedSecuritiesMemberus-gaap:FairValueInputsLevel3Member2021-12-310000775368us-gaap:CommonStockMemberus-gaap:FairValueInputsLevel1Member2021-12-310000775368us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-01-012022-06-300000775368y:LowestOfThreeRatingAgenciesAAARatingMembery:OtherAssetBackedSecuritiesMember2022-06-300000775368us-gaap:OperatingSegmentsMembery:RsuiGroupIncorporatedMembery:InsuranceSegmentMember2022-04-012022-06-300000775368us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-01-012022-03-310000775368y:ReinsuranceSegmentMember2022-04-012022-06-300000775368y:IndustrialSegmentMemberus-gaap:OperatingSegmentsMembery:AlleghanyCapitalCorporationSegmentMember2022-04-012022-06-300000775368us-gaap:FairValueInputsLevel2Memberus-gaap:ForeignGovernmentDebtSecuritiesMember2021-12-310000775368y:HotelDevelopmentProjectsMembersrt:MaximumMember2022-06-300000775368us-gaap:OtherLongTermInvestmentsMember2021-12-310000775368y:BerkshireHathawayIncMember2022-03-202022-03-200000775368us-gaap:TreasuryStockMember2022-06-300000775368y:LowestOfThreeRatingAgenciesAAARatingMemberus-gaap:ForeignGovernmentDebtSecuritiesMember2022-06-300000775368us-gaap:OtherLongTermInvestmentsMember2021-06-300000775368y:CasualtyAndSpecialtyReinsuranceSegmentsMembery:ReinsuranceSegmentMember2022-04-012022-06-300000775368y:RsuiGroupIncorporatedMembery:InsuranceSegmentMember2022-04-012022-06-300000775368us-gaap:PreferredStockMember2021-06-300000775368us-gaap:RetainedEarningsMember2022-06-300000775368us-gaap:CommercialMortgageBackedSecuritiesMemberus-gaap:FairValueInputsLevel1Member2022-06-300000775368y:OtherAssetBackedSecuritiesMembery:LowestOfThreeRatingAgenciesARatingMember2022-06-300000775368us-gaap:OperatingSegmentsMembery:ReinsuranceSegmentMembery:PropertyReinsuranceSegmentMember2021-01-012021-06-300000775368us-gaap:ResidentialMortgageBackedSecuritiesMember2021-01-012021-06-300000775368us-gaap:AdditionalPaidInCapitalMember2021-01-012021-03-310000775368us-gaap:OperatingSegmentsMembery:NonIndustrialSegmentMemberus-gaap:TransferredOverTimeMembery:AlleghanyCapitalCorporationSegmentMember2022-01-012022-06-300000775368us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-04-012022-06-300000775368y:LowestOfThreeRatingAgenciesAARatingMember2022-06-300000775368y:AnchorbuoyLimitedAcquisitionByIntegratedProjectServicesLlcMember2021-10-142021-10-140000775368us-gaap:USTreasurySecuritiesMemberus-gaap:FairValueInputsLevel1Member2021-12-310000775368us-gaap:CommonStockMemberus-gaap:FairValueInputsLevel2Member2021-12-3100007753682022-04-012022-06-300000775368us-gaap:CommonStockMember2021-12-310000775368us-gaap:OperatingSegmentsMembery:NonIndustrialSegmentMembery:AlleghanyCapitalCorporationSegmentMember2021-04-012021-06-300000775368us-gaap:AdditionalPaidInCapitalMember2021-06-300000775368y:CasualtyAndSpecialtyReinsuranceSegmentsMembery:ReinsuranceSegmentMember2021-04-012021-06-300000775368us-gaap:OperatingSegmentsMembery:InsuranceSegmentMember2021-01-012021-06-300000775368us-gaap:RetainedEarningsMember2022-03-310000775368us-gaap:OperatingSegmentsMembery:ReinsuranceSegmentAndInsuranceSegmentMember2021-04-012021-06-300000775368y:LowestOfThreeRatingAgenciesARatingMember2022-01-012022-06-300000775368us-gaap:ForeignCorporateDebtSecuritiesMembery:LowestOfThreeRatingAgenciesARatingMember2022-06-300000775368y:OtherAssetBackedSecuritiesMembery:LowestOfThreeRatingAgenciesBBBRatingMember2022-06-300000775368us-gaap:OperatingSegmentsMember2022-01-012022-06-300000775368us-gaap:ReinsuranceRecoverableForPaidAndUnpaidClaimsAndClaimsAdjustmentsMembery:OtherReinsurersMemberus-gaap:ReinsurerConcentrationRiskMember2022-01-012022-06-300000775368us-gaap:CommercialMortgageBackedSecuritiesMembery:LowestOfThreeRatingAgenciesBBBRatingMember2022-06-300000775368us-gaap:FairValueInputsLevel2Memberus-gaap:DomesticCorporateDebtSecuritiesMember2022-06-300000775368us-gaap:ReinsuranceRecoverableForPaidAndUnpaidClaimsAndClaimsAdjustmentsMembersrt:AMBestAPlusPlusRatingMembery:ChubbLtdMemberus-gaap:ReinsurerConcentrationRiskMember2022-01-012022-06-300000775368y:LowestOfThreeRatingAgenciesBRatingMember2022-06-300000775368us-gaap:CorporateNonSegmentMember2021-01-012021-06-300000775368us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2021-06-300000775368us-gaap:TreasuryStockMember2021-04-012021-06-300000775368y:LowestOfThreeRatingAgenciesAAARatingMemberus-gaap:ForeignCorporateDebtSecuritiesMember2022-06-300000775368y:ReinsuranceSegmentMembery:PropertyReinsuranceSegmentMember2021-04-012021-06-300000775368us-gaap:ReinsuranceRecoverableForPaidAndUnpaidClaimsAndClaimsAdjustmentsMemberus-gaap:ReinsurerConcentrationRiskMember2022-06-300000775368us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-04-012021-06-300000775368us-gaap:CommonStockMemberus-gaap:FairValueInputsLevel3Member2022-06-3000007753682022-01-012022-06-300000775368us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2022-01-012022-06-300000775368us-gaap:AdditionalPaidInCapitalMember2022-06-300000775368y:RsuiGroupIncorporatedMembery:CasualtyInsuranceMembery:InsuranceSegmentMember2021-01-012021-06-300000775368y:COVID19GlobalPandemicMembery:PropertyReinsuranceSegmentMembery:ReinsuranceSegmentMember2021-04-012021-06-300000775368y:OtherAssetBackedSecuritiesMember2022-06-300000775368y:COVID19GlobalPandemicMembery:ReinsuranceSegmentMembery:PropertyReinsuranceSegmentMember2022-04-012022-06-300000775368us-gaap:ResidentialMortgageBackedSecuritiesMember2021-12-310000775368us-gaap:OperatingSegmentsMembery:ReinsuranceSegmentMember2022-01-012022-06-300000775368us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-06-300000775368y:RsuiGroupIncorporatedMembery:InsuranceSegmentMember2022-01-012022-06-3000007753682021-04-012021-06-300000775368us-gaap:TreasuryStockMember2021-06-300000775368us-gaap:FairValueInputsLevel2Memberus-gaap:ShortTermInvestmentsMember2021-12-310000775368us-gaap:ReinsuranceRecoverableForPaidAndUnpaidClaimsAndClaimsAdjustmentsMembersrt:AMBestAPlusRatingMembery:WrBerkleyCorporationMemberus-gaap:ReinsurerConcentrationRiskMember2022-06-3000007753682020-12-310000775368us-gaap:DomesticCorporateDebtSecuritiesMember2021-01-012021-06-300000775368y:SeniorNotesDueTwentyTwentyTwoMembery:AlleghanyCorporationMember2012-06-260000775368y:LowestOfThreeRatingAgenciesAAARatingMemberus-gaap:ResidentialMortgageBackedSecuritiesMember2022-06-300000775368y:PiedmontManufacturingGroupLLCMemberus-gaap:OperatingSegmentsMembery:AlleghanyCapitalCorporationSegmentMember2022-06-300000775368y:OtherAssetBackedSecuritiesMembery:LowestOfThreeRatingAgenciesBelowBBBOrNotRatedRatingMember2022-06-300000775368us-gaap:PreferredStockMember2020-12-310000775368y:NotRatedMemberus-gaap:ReinsuranceRecoverableForPaidAndUnpaidClaimsAndClaimsAdjustmentsMembery:StoneRidgeHoldingGroupMemberus-gaap:ReinsurerConcentrationRiskMember2022-06-300000775368us-gaap:OperatingSegmentsMembery:CapSpecialtyIncorporatedMembery:InsuranceSegmentMember2021-04-012021-06-300000775368us-gaap:OperatingSegmentsMembery:RsuiGroupIncorporatedMembery:InsuranceSegmentMember2021-04-012021-06-300000775368us-gaap:TreasuryStockMember2021-12-310000775368y:CasualtyAndSpecialtyReinsuranceSegmentsMembery:ReinsuranceSegmentMembery:NoncatastropheMember2022-04-012022-06-300000775368us-gaap:CommonStockMemberus-gaap:FairValueInputsLevel3Member2021-12-310000775368us-gaap:ResidentialMortgageBackedSecuritiesMembery:LowestOfThreeRatingAgenciesARatingMember2022-06-300000775368us-gaap:RetainedEarningsMember2022-04-012022-06-300000775368us-gaap:FairValueInputsLevel3Memberus-gaap:ForeignGovernmentDebtSecuritiesMember2022-06-300000775368us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2022-04-012022-06-300000775368us-gaap:ForeignCorporateDebtSecuritiesMembery:LowestOfThreeRatingAgenciesBBBRatingMember2022-06-300000775368us-gaap:ReinsuranceRecoverableForPaidAndUnpaidClaimsAndClaimsAdjustmentsMembersrt:AMBestAPlusRatingMembery:PartnerReLimitedMemberus-gaap:ReinsurerConcentrationRiskMember2022-06-300000775368y:SeniorNotesDueTwentyTwentyTwoMembery:AlleghanyCorporationMember2022-06-270000775368y:LowestOfThreeRatingAgenciesBBRatingMember2022-06-300000775368us-gaap:CorporateNonSegmentMember2021-04-012021-06-300000775368us-gaap:FairValueInputsLevel3Memberus-gaap:ResidentialMortgageBackedSecuritiesMember2022-06-300000775368y:RsuiGroupIncorporatedMembery:CasualtyInsuranceMembery:InsuranceSegmentMember2022-01-012022-06-300000775368y:AlleghanyCorporationMembery:AnchorbuoyLimitedAcquisitionByIntegratedProjectServicesLlcMember2021-10-142021-10-140000775368us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2021-04-012021-06-300000775368us-gaap:ResidentialMortgageBackedSecuritiesMembery:LowestOfThreeRatingAgenciesAARatingMember2022-06-300000775368us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2022-01-012022-06-300000775368us-gaap:OperatingSegmentsMembery:CapSpecialtyIncorporatedMembery:InsuranceSegmentMember2022-01-012022-06-300000775368us-gaap:OperatingSegmentsMembery:PropertyReinsuranceSegmentMembery:ReinsuranceSegmentMember2021-04-012021-06-300000775368us-gaap:FairValueInputsLevel2Memberus-gaap:CommercialMortgageBackedSecuritiesMember2022-06-300000775368us-gaap:OperatingSegmentsMembery:AlleghanyCapitalCorporationSegmentMember2022-01-012022-06-300000775368y:AllOtherCatastropheEventsMembery:ReinsuranceSegmentMembery:PropertyReinsuranceSegmentMember2021-04-012021-06-300000775368y:ReinsurersRatedAOrHigherMemberus-gaap:ReinsuranceRecoverableForPaidAndUnpaidClaimsAndClaimsAdjustmentsMemberus-gaap:ReinsurerConcentrationRiskMember2022-01-012022-06-300000775368us-gaap:ShortTermInvestmentsMemberus-gaap:FairValueInputsLevel3Member2022-06-300000775368us-gaap:OperatingSegmentsMembery:ReinsuranceSegmentAndInsuranceSegmentMember2022-06-300000775368us-gaap:FairValueInputsLevel2Memberus-gaap:MunicipalBondsMember2022-06-300000775368us-gaap:ReinsuranceRecoverableForPaidAndUnpaidClaimsAndClaimsAdjustmentsMembersrt:AMBestARatingMembery:FairfaxFinancialHoldingsLimitedMemberus-gaap:ReinsurerConcentrationRiskMember2022-01-012022-06-300000775368us-gaap:OperatingSegmentsMember2022-06-300000775368y:ReinsuranceSegmentMembery:PropertyReinsuranceSegmentMembery:NoncatastropheMember2021-04-012021-06-300000775368us-gaap:MunicipalBondsMembery:LowestOfThreeRatingAgenciesAAARatingMember2022-06-300000775368y:ReinsuranceSegmentMember2021-04-012021-06-300000775368y:LowestOfThreeRatingAgenciesARatingMember2022-06-300000775368us-gaap:DomesticCorporateDebtSecuritiesMember2020-12-310000775368y:LowestOfThreeRatingAgenciesBelowBBBOrNotRatedRatingMemberus-gaap:ForeignCorporateDebtSecuritiesMember2022-06-300000775368y:ReinsuranceSegmentMembersrt:MinimumMember2022-01-012022-06-300000775368us-gaap:CorporateNonSegmentMember2022-01-012022-06-300000775368us-gaap:OperatingSegmentsMembery:ReinsuranceSegmentAndInsuranceSegmentMember2021-01-012021-06-300000775368y:OtherAssetBackedSecuritiesMember2022-01-012022-06-300000775368y:PillarCapitalHoldingsLimitedAndManagedFundsMember2021-12-310000775368us-gaap:FairValueInputsLevel2Memberus-gaap:ShortTermInvestmentsMember2022-06-300000775368us-gaap:OtherLongTermInvestmentsMember2022-01-012022-06-300000775368y:AllOtherCatastropheEventsMembery:CasualtyAndSpecialtyReinsuranceSegmentsMembery:ReinsuranceSegmentMember2021-01-012021-06-300000775368us-gaap:OperatingSegmentsMembery:NonIndustrialSegmentMembery:AlleghanyCapitalCorporationSegmentMember2022-04-012022-06-300000775368y:PrecisionCuttingTechnologiesIncMemberus-gaap:OperatingSegmentsMembery:AlleghanyCapitalCorporationSegmentMember2022-06-300000775368us-gaap:FairValueInputsLevel1Memberus-gaap:ShortTermInvestmentsMember2021-12-310000775368us-gaap:AccumulatedTranslationAdjustmentMember2021-12-310000775368y:LowestOfThreeRatingAgenciesBelowBBBOrNotRatedRatingMember2022-01-012022-06-300000775368us-gaap:CorporateNonSegmentMember2022-06-30xbrli: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 June 30, 2022


☐		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.

13,455,454 Shares, par value $1.00 per share, as of July 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	29
ITEM 3.	Quantitative and Qualitative Disclosures About Market Risk	66
ITEM 4.	Controls and Procedures	68
PART II

ITEM 1.	Legal Proceedings	69
ITEM 1A.	Risk Factors	69
ITEM 6.	Exhibits	71
SIGNATURES		72

Part I. FINANCIAL INFORMATION

Item 1. Financial Statements.

ALLEGHANY CORPORATION AND SUBSIDIARIES

Consolidated Balance Sheets


	June 30,			December 31,
	2022			2021
	(unaudited)
	($ in thousands, except share amounts)
Assets
Investments:
Securities at fair value:
Equity securities (cost: 2022 – $2,352,925; 2021 – $2,552,722)	$	2,869,444		$	3,683,820
Debt securities (amortized cost: 2022 – $15,694,482; 2021 – $15,727,143; allowance for credit losses: 2022 – $8,679; 2021 – $502)		14,651,254			16,061,560
Short-term investments		1,624,444			1,142,258
		19,145,142			20,887,638
Commercial mortgage loans		451,404			475,860
Other invested assets		538,302			557,800
Total investments		20,134,848			21,921,298
Cash		941,519			927,966
Accrued investment income		94,871			87,610
Premium balances receivable		1,627,263			1,458,679
Reinsurance recoverables		2,161,436			2,195,975
Ceded unearned premiums		523,733			463,412
Deferred acquisition costs		646,646			586,753
Property and equipment at cost, net of accumulated depreciation and amortization		319,650			304,452
Goodwill		733,109			753,607
Intangible assets, net of amortization		889,605			924,406
Current taxes receivable		22,589			—
Net deferred tax assets		334,295			—
Funds held under reinsurance agreements		421,362			634,182
Other assets		2,156,939			2,010,335
Total assets	$	31,007,865		$	32,268,675

Liabilities, Redeemable Noncontrolling Interests and Stockholders’ Equity
Loss and loss adjustment expenses	$	14,393,680		$	14,357,635
Unearned premiums		3,525,555			3,179,513
Senior notes and other debt		2,339,598			2,847,199
Reinsurance payable		389,837			322,902
Current taxes payable		—			34,297
Net deferred tax liabilities		—			56,958
Other liabilities		2,057,076			1,965,943
Total liabilities		22,705,746			22,764,447
Redeemable noncontrolling interests		395,449			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		3,575,815			3,608,905
Accumulated other comprehensive (loss) income		(964,281	)		141,822
Treasury stock, at cost (2022 – 4,004,507 shares; 2021 – 3,861,426 shares)		(2,029,617	)		(1,934,531	)
Retained earnings		7,307,293			7,353,226
Total stockholders’ equity attributable to Alleghany stockholders		7,906,670			9,186,882
Total liabilities, redeemable noncontrolling interests and stockholders’ equity	$	31,007,865		$	32,268,675

See accompanying Notes to Unaudited Consolidated Financial Statements.

ALLEGHANY CORPORATION AND SUBSIDIARIES

Consolidated Statements of Earnings and Comprehensive Income

(unaudited)


	Three Months Ended June 30,
	2022			2021
	($ in thousands, except per share amounts)
Revenues
Net premiums earned	$	1,715,188		$	1,784,351
Net investment income		105,452			126,931
Change in the fair value of equity securities		(500,223	)		203,902
Net realized capital gains		11,167			12,942
Change in allowance for credit losses on available for sale securities		(7,595	)		246
Product and service revenues		1,272,902			800,425
Total revenues		2,596,891			2,928,797

Costs and Expenses
Net loss and loss adjustment expenses		1,039,127			1,087,206
Commissions, brokerage and other underwriting expenses		510,935			523,513
Other operating expenses		1,149,986			739,592
Corporate administration		17,278			20,148
Amortization of intangible assets		14,941			12,431
Interest expense		28,544			24,037
Total costs and expenses		2,760,811			2,406,927

(Losses) earnings before income taxes		(163,920	)		521,870
Income taxes		(40,033	)		102,281
Net (losses) earnings		(123,887	)		419,589
Net earnings attributable to noncontrolling interest		47,727			15,938
Net (losses) earnings attributable to Alleghany stockholders	$	(171,614	)	$	403,651

Net (losses) earnings	$	(123,887	)	$	419,589
Other comprehensive income (loss):
Change in unrealized gains, net of deferred taxes of ($125,309) and $24,339 in 2022 and 2021, respectively		(471,401	)		91,560
Less: reclassification for net realized capital gains and change in allowance for credit losses on available for sale securities, net of taxes of ($750) and ($2,769) for 2022 and 2021, respectively		(2,822	)		(10,419	)
Change in unrealized currency translation adjustment, net of deferred taxes of ($6,834) and ($598) for 2022 and 2021, respectively		(25,707	)		(2,249	)
Retirement plans		109			113
Comprehensive (loss) income		(623,708	)		498,594
Comprehensive income attributable to noncontrolling interests		47,727			15,938
Comprehensive (loss) income attributable to Alleghany stockholders	$	(671,435	)	$	482,656

Basic (losses) earnings per share attributable to Alleghany stockholders	$	(12.75	)	$	29.00
Diluted (losses) earnings per share attributable to Alleghany stockholders		(12.75	)		29.00

See accompanying Notes to Unaudited Consolidated Financial Statements.

ALLEGHANY CORPORATION AND SUBSIDIARIES

Consolidated Statements of Earnings and Comprehensive Income

(unaudited)


	Six Months Ended June 30,
	2022			2021
	($ in thousands, except per share amounts)
Revenues
Net premiums earned	$	3,320,646		$	3,389,114
Net investment income		218,928			280,415
Change in the fair value of equity securities		(639,000	)		316,630
Net realized capital gains		1,164			25,873
Change in allowance for credit losses on available for sale securities		(8,177	)		2,218
Product and service revenues		2,422,064			1,568,260
Total revenues		5,315,625			5,582,510

Costs and Expenses
Net loss and loss adjustment expenses		1,980,914			2,199,276
Commissions, brokerage and other underwriting expenses		988,100			999,549
Other operating expenses		2,178,878			1,463,481
Corporate administration		28,001			29,706
Amortization of intangible assets		29,023			23,909
Interest expense		60,654			47,789
Total costs and expenses		5,265,570			4,763,710

Earnings before income taxes		50,055			818,800
Income taxes		5,049			161,148
Net earnings		45,006			657,652
Net earnings attributable to noncontrolling interest		90,939			23,960
Net (losses) earnings attributable to Alleghany stockholders	$	(45,933	)	$	633,692

Net earnings	$	45,006		$	657,652
Other comprehensive income (loss):
Change in unrealized gains, net of deferred taxes of ($288,591) and ($33,593) in 2022 and 2021, respectively		(1,085,652	)		(126,375	)
Less: reclassification for net realized capital gains and change in allowance for credit losses on available for sale securities, net of taxes of $1,473 and ($5,899) for 2022 and 2021, respectively		5,540			(22,192	)
Change in unrealized currency translation adjustment, net of deferred taxes of ($6,973) and $57 for 2022 and 2021, respectively		(26,230	)		213
Retirement plans		239			(852	)
Comprehensive (loss) income		(1,061,097	)		508,446
Comprehensive income attributable to noncontrolling interests		90,939			23,960
Comprehensive (loss) income attributable to Alleghany stockholders	$	(1,152,036	)	$	484,486

Basic (losses) earnings per share attributable to Alleghany stockholders	$	(3.41	)	$	45.41
Diluted (losses) earnings per share attributable to Alleghany stockholders		(3.41	)		45.41

See accompanying Notes to Unaudited Consolidated Financial Statements.

ALLEGHANY CORPORATION AND SUBSIDIARIES

Consolidated Statements of Changes in Stockholders’ Equity

(unaudited)


	Six Months Ended June 30, 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
Add (deduct):
Net (losses) earnings		—		—			—			—			(171,614	)		(171,614	)		47,727
Other comprehensive income (loss), net of tax:
Retirement plans		—		—			109			—			—			109			—
Change in unrealized appreciation of investments, net		—		—			(474,223	)		—			—			(474,223	)		—
Change in unrealized currency translation adjustment, net		—		—			(25,707	)		—			—			(25,707	)		—
Comprehensive (loss) income		—		—			(499,821	)		—			(171,614	)		(671,435	)		47,727
Treasury stock repurchase		—		—			—			—			—			—			—
Other, net		—		(17,555	)		—			287			—			(17,268	)		(18,071	)
Balance as of June 30, 2022
(17,459,961 shares of common stock issued; 4,004,507 in treasury)	$	17,460	$	3,575,815		$	(964,281	)	$	(2,029,617	)	$	7,307,293		$	7,906,670		$	395,449


	Six Months Ended June 30, 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
Add (deduct):
Net earnings		—		—			—			—			403,651		403,651			15,938
Other comprehensive income (loss), net of tax:
Retirement plans		—		—			113			—			—		113			—
Change in unrealized appreciation of investments, net		—		—			81,141			—			—		81,141			—
Change in unrealized currency translation adjustment, net		—		—			(2,249	)		—			—		(2,249	)		—
Comprehensive income		—		—			79,005			—			403,651		482,656			15,938
Treasury stock repurchase		—		—			—			(35,925	)		—		(35,925	)		—
Other, net		—		(981	)		1			399			—		(581	)		(8,779	)
Balance as of June 30, 2021
(17,459,961 shares of common stock issued; 3,571,187 in treasury)	$	17,460	$	3,612,783		$	303,196		$	(1,743,434	)	$	6,952,026	$	9,142,031		$	240,722

See accompanying Notes to Unaudited Consolidated Financial Statements.

ALLEGHANY CORPORATION AND SUBSIDIARIES

Consolidated Statements of Cash Flows

(unaudited)


	Six Months Ended June 30,
	2022			2021
	($ in thousands)
Cash flows from operating activities
Net earnings	$	45,006		$	657,652
Adjustments to reconcile net earnings to net cash provided by (used in) operating activities:
Depreciation and amortization		89,559			86,449
Change in the fair value of equity securities		639,000			(316,630	)
Net realized capital (gains) losses		(1,164	)		(25,873	)
Change in allowance for credit losses on available for sale securities		8,177			(2,218	)
(Increase) decrease in reinsurance recoverables, net of reinsurance payable		101,474			(6,506	)
(Increase) decrease in premium balances receivable		(168,584	)		(293,135	)
(Increase) decrease in ceded unearned premiums		(60,321	)		(86,384	)
(Increase) decrease in deferred acquisition costs		(59,893	)		(56,715	)
(Increase) decrease in funds held under reinsurance agreements		212,820			(28,367	)
Increase (decrease) in unearned premiums		346,042			345,023
Increase (decrease) in loss and loss adjustment expenses		36,045			533,845
Change in unrealized foreign currency exchange rate losses (gains)		152,425			28,014
Other, net		(188,472	)		104,027
Net adjustments		1,107,108			281,530
Net cash provided by operating activities		1,152,114			939,182
Cash flows from investing activities
Purchases of debt securities		(2,087,910	)		(3,955,811	)
Purchases of equity securities		(160,398	)		(897,758	)
Sales of debt securities		1,001,030			2,366,976
Maturities and redemptions of debt securities		942,984			1,136,960
Sales of equity securities		327,976			350,913
Net (purchases) sales of short-term investments		(481,774	)		334,937
Net (purchases) sales and maturities of commercial mortgage loans		24,456			127,133
(Purchases) sales of property and equipment		(38,018	)		(32,928	)
Purchases of affiliates and subsidiaries, net of cash acquired		—			(57,881	)
Other, net		11,100			26,340
Net cash used in investing activities		(460,554	)		(601,119	)
Cash flows from financing activities
Repayment of senior notes		(400,000	)		—
Treasury stock acquisitions		(95,987	)		(99,117	)
Increase (decrease) in other debt		(108,393	)		(105,512	)
Other, net		(44,759	)		(42,890	)
Net cash used in financing activities		(649,139	)		(247,519	)
Effect of foreign exchange rate changes on cash		(28,868	)		(10,527	)
Net increase in cash		13,553			80,017
Cash at beginning of period		927,966			791,442
Cash at end of period	$	941,519		$	871,459

Supplemental disclosures of cash flow information
Cash paid during period for:
Interest paid	$	56,316		$	46,116
Income taxes paid		157,336			76,931

See accompanying Notes to Unaudited Consolidated Financial Statements.

ALLEGHANY CORPORATION AND SUBSIDIARIES

Notes to Unaudited Consolidated Financial Statements

1. Summary of Significant Accounting Principles

(a) Principles of Financial Statement Presentation

This Quarterly Report on Form 10-Q (this “Form 10-Q”) should be read in conjunction with the Annual Report on Form 10-K for the year ended December 31, 2021 (the “2021 Form 10-K”) and the Quarterly Report on Form 10-Q for the quarter ended March 31, 2022 of Alleghany Corporation (“Alleghany”).

Alleghany, a Delaware corporation, owns and supports certain operating subsidiaries and manages investments, anchored by a core position in property and casualty reinsurance and insurance. Through its wholly-owned subsidiary Transatlantic Holdings, Inc. (“TransRe”), an Alleghany subsidiary since March 2012, Alleghany is engaged in the property and casualty reinsurance business. Through its wholly-owned subsidiary Alleghany Insurance Holdings LLC (“AIHL”), Alleghany is engaged in the property and casualty insurance business. AIHL’s insurance operations are principally conducted by its subsidiaries RSUI Group, Inc. (“RSUI”) and CapSpecialty, Inc. (“CapSpecialty”). RSUI and CapSpecialty have been subsidiaries of AIHL since July 2003 and January 2002, respectively. AIHL Re LLC (“AIHL Re”), a captive reinsurance company, which provides reinsurance to Alleghany’s current and former insurance operating subsidiaries and affiliates, has been a subsidiary of Alleghany since its formation in May 2006.

Although Alleghany’s primary sources of revenues and earnings are its reinsurance and insurance operations and investments, Alleghany also generates revenues and earnings from a diverse portfolio of consumer, service and industrial businesses that are owned and supported through its wholly-owned subsidiary Alleghany Capital Corporation (“Alleghany Capital”). Alleghany Capital’s businesses include:

•

Precision Cutting Technologies, Inc. (“PCT”), a holding company headquartered in Rockford, Illinois, with four operating businesses: (i) Bourn & Koch, Inc., a provider of precision automated machine tool solutions; (ii) Diamond Technology Innovations, Inc., a manufacturer of waterjet orifices and nozzles and a provider of related services; (iii) Coastal Industrial Distributors, LLC, a provider of high-performance solid carbide end mills; and (iv) Supermill LLC, a manufacturer of high-performance solid carbide end mills;

•

R.C. Tway Company, LLC (“Kentucky Trailer”), a manufacturer of custom trailers and truck bodies for the moving and storage industry and other markets, headquartered in Louisville, Kentucky;

•

IPS-Integrated Project Services, LLC (“IPS”), a global provider of design, engineering and other specialty consulting services to the biopharmaceutical and life sciences markets, and cost and project management consultancy services for clients in the data center, technology and other sectors, headquartered in Blue Bell, Pennsylvania;

•

Jazwares, LLC (together with its affiliates, “Jazwares”), a global toy company, headquartered in Sunrise, Florida;

•

WWSC Holdings, LLC (“W&W|AFCO Steel”), a structural steel fabricator and erector, headquartered in Oklahoma City, Oklahoma;

•

CHECO Holdings, LLC (“Concord”), a hotel management and development company, headquartered in Raleigh, North Carolina;

•

Wilbert Funeral Services, Inc. (“Wilbert”), a provider of products and services for the funeral and cemetery industries and precast concrete markets, headquartered in Overland Park, Kansas; and

•

Piedmont Manufacturing Group, LLC (“Piedmont”), a provider of custom injection molded and thermoformed parts and multi-component assemblies for original equipment manufacturer customers in a variety of end-markets, headquartered in Belmont, North Carolina.

The results of Piedmont have been included in Alleghany’s consolidated results from its formation and subsequent acquisition of Wilbert, Inc., doing business as Wilbert Plastic Services (“WPS”) on May 10, 2021.

In addition, Alleghany owns certain other holding-company investments. Alleghany’s wholly-owned subsidiary Alleghany Properties Holdings LLC (“Alleghany Properties”) owns and manages certain properties in the Sacramento, California region. Alleghany’s public equity investments are managed primarily through Alleghany’s wholly-owned subsidiary Roundwood Asset Management LLC.

On March 20, 2022, Alleghany entered into an Agreement and Plan of Merger (the “Merger Agreement”) with Berkshire Hathaway Inc., a Delaware corporation (“Berkshire”) and O&M Acquisition Corp., a Delaware corporation and a wholly-owned subsidiary of Berkshire (“Merger Sub”). Pursuant to the Merger Agreement and subject to the satisfaction or waiver of the conditions set forth therein, Merger Sub will be merged with and into Alleghany, with Alleghany continuing as the surviving corporation and a wholly-owned subsidiary of Berkshire (the “Merger”). As a result of the Merger, each issued and outstanding share of Alleghany’s common stock, par value $1.00 per share (the “Common Stock”) (other than shares (a) held in the treasury of Alleghany or owned by Berkshire or any direct or indirect wholly-owned subsidiary of Berkshire or (b) held by a stockholder who has demanded and perfected such holder's demand for appraisal rights in accordance with Delaware law) will be canceled and extinguished and converted into the right to receive $848.02 in cash, without interest, representing a total equity value of approximately $11.6 billion. Alleghany stockholders approved and adopted the Merger Agreement and Merger on June 9, 2022 and the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, expired in early May 2022. The closing of the Merger remains subject to certain conditions, including (i) the receipt of authorizations required to be obtained from applicable foreign antitrust regulators or the expiration or termination of any applicable waiting periods under applicable foreign antitrust laws, (ii) the receipt of authorizations required to be obtained from applicable insurance regulators and (iii) other customary closing conditions. The Merger Agreement generally requires Alleghany to operate its business in the ordinary course pending consummation of the proposed Merger and restricts Alleghany, without Berkshire’s consent, from taking certain specified actions until the Merger is completed. For a description of the treatment of equity awards under the Merger Agreement, see Alleghany’s definitive proxy statement filed with the SEC on April 29, 2022.

Unless the context otherwise requires, references to “Alleghany” include Alleghany together with its subsidiaries.

The accompanying consolidated financial statements include the results of Alleghany and its wholly-owned and majority-owned subsidiaries and have been prepared in accordance with accounting principles generally accepted in the U.S. (“GAAP”). All material inter-company balances and transactions have been eliminated in consolidation.

The portion of stockholders’ equity, net earnings and comprehensive income that is not attributable to Alleghany stockholders is presented on the consolidated balance sheets, the consolidated statements of earnings and comprehensive income and the consolidated statements of changes in stockholders’ equity as noncontrolling interests. Because all noncontrolling interests have the option to sell their ownership interests to Alleghany in the future (generally through 2028), the portion of stockholders’ equity that is not attributable to Alleghany stockholders is presented on the consolidated balance sheets and the consolidated statements of changes in stockholders’ equity as redeemable noncontrolling interests for all periods presented. In addition, Alleghany accretes the redeemable noncontrolling interests up to their future estimated redemption value over the period from the date of issuance to the earliest redemption date. The redemption value of the equity interests is generally based on the subsidiary’s earnings in specified periods preceding the applicable redemption date, calculated based on either a specified formula or an independent fair market valuation. Accretion related to redemption values based on a specified formula are recorded as a component of net earnings attributable to noncontrolling interests, whereas accretion related to redemption values based on an independent fair market valuation are recorded as a component of contributed capital. Accretion may increase or decrease each period, however, the redeemable noncontrolling interest balance may not go below the initial balance established at the acquisition date. From time to time, redemption dates, formulas and values may be subject to change based on negotiations with certain noncontrolling interest holders, resulting in potential differences between any negotiated payout amount and the current carrying value of such noncontrolling interests. The following table presents the components of net earnings attributable to noncontrolling interests for the three and six months ended June 30, 2022 and 2021:


	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
	($ in millions)
Accretion of redeemable noncontrolling interests	$	24.9	$	3.1	$	43.7	$	3.7
Portion of net earnings attributable to noncontrolling interests		22.8		12.8		47.2		20.3
Total	$	47.7	$	15.9	$	90.9	$	24.0

In addition, accretion reduced contributed capital by $17.7 million and $1.0 million for the three months ended June 30, 2022 and 2021, respectively, and $34.2 million and $1.0 million for the six months ended June 30, 2022 and 2021, respectively. Such accretion may be adjusted later in 2022 as certain significant noncontrolling interest holders have the right to put their respective equity interests to Alleghany Capital. The difference between any actual payouts that may be negotiated and agreed, as compared to the carrying value of such noncontrolling interests, will be recorded as accretion and charged to contributed capital.

As of June 30, 2022, the noncontrolling interests outstanding were approximately as follows: Kentucky Trailer - 20 percent; IPS - 18 percent; Jazwares - 24 percent; W&W|AFCO Steel - 20 percent; and Concord - 15 percent.

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements, as well as the reported amounts of revenues and expenses during the reporting period. Alleghany relies on historical experience and on various other assumptions that it believes to be reasonable under the circumstances to make judgments about the carrying value of assets and liabilities and reported revenues and expenses that are not readily apparent from other sources. Actual results may differ materially from those reported results to the extent that those estimates and assumptions prove to be inaccurate. Changes in estimates are reflected in the consolidated statements of earnings and comprehensive income in the period in which the changes are made.

(b) Other Significant Accounting Principles

Alleghany’s significant accounting principles can be found in Note 1 to Notes to Consolidated Financial Statements set forth in Part II, Item 8, “Financial Statements and Supplementary Data” of the 2021 Form 10-K.

Recently Adopted

In August 2020, the Financial Accounting Standards Board (the “FASB”) issued guidance that simplifies the accounting and disclosure requirements for certain financial instruments with characteristics of liabilities and equity, such as convertible debt and convertible preferred stock. This guidance also modifies the accounting for certain contracts involving an entity’s own stock. This guidance was effective in the first quarter of 2022 for public companies, with early adoption permitted. Alleghany adopted this guidance in the first quarter of 2022 and the adoption did not have a material impact on its results of operations and financial condition.

In May 2021, the FASB issued guidance on how issuers should account for modifications or exchanges of freestanding equity-classified written call options that remain classified as equity after the modification or exchange. Under this guidance, the issuer will determine the accounting for the modification or exchange based on the economic substance of the modification or exchange (i.e. to issue equity, to issue or modify debt, or other reasons). This guidance was effective in the first quarter of 2022 for all entities, with early adoption permitted when applied as of the beginning of the fiscal year. Alleghany adopted this guidance in the first quarter of 2022 and the adoption did not have a material impact on its results of operations and financial condition.

Future Application of Accounting Standards

In October 2021, the FASB issued guidance related to contract assets and liabilities recorded in a business combination. A contract asset is recorded when the amount of goods or services transferred to a customer exceed the amount received or receivable from the customer, and a contract liability is recorded when the amount received or receivable from a customer exceeds the amount of goods or services transferred to the customer. The guidance requires that the acquirer of a business determine and record a customer contract asset or liability it would have recorded if the acquirer had entered into the original contract with the customer at the same date and at the same terms as the acquiree using preexisting revenue recognition guidance. Under current guidance, contract assets and liabilities are recorded at acquisition date fair value. As a result of this guidance, the acquisition date recognition and measurement of customer contract assets and liabilities will likely be similar to the acquiree carrying values, and post-acquisition revenue recognition will likely be similar to what the acquiree would have recorded. This guidance is effective for public companies for business acquisitions completed on or after January 1, 2023, with early adoption permitted subject to certain conditions and requirements. Alleghany will adopt this guidance for business acquisitions completed on or after January 1, 2023 and does not currently believe that the implementation will have a material impact on its results of operations and financial condition.

In March 2022, the FASB issued guidance on credit losses. Under this guidance, all loan and receivable modifications, including modifications made for borrowers experiencing financial difficulty, shall be accounted for using the current expected credit loss model (the “Model”). This guidance applies to entities that have previously adopted the Model. Entities that have not yet adopted the Model will continue to use pre-existing accounting rules. This guidance also expands disclosure requirements for modifications made for borrowers experiencing financial difficulty. This guidance is effective in the first quarter of 2023 for public companies, with early adoption permitted. Alleghany previously adopted the Model in the first quarter of 2020 and will adopt this guidance in the first quarter of 2023. Alleghany does not currently believe that the implementation will have a material impact on its results of operations and financial condition.

2. Fair Value of Financial Instruments

The following table presents the carrying value and estimated fair value of Alleghany’s consolidated financial instruments as of June 30, 2022 and December 31, 2021:


	June 30, 2022				December 31, 2021
	Carrying Value		Fair Value		Carrying Value		Fair Value
	($ in millions)
Assets
Investments (excluding equity method investments and loans)(1)	$	19,145.1	$	19,145.1	$	20,887.7	$	20,887.7

Liabilities
Senior notes and other debt(2)	$	2,339.6	$	2,267.8	$	2,847.2	$	3,157.9

(1)

This table includes debt and equity securities, as well as partnership and non-marketable equity investments accounted for at fair value that are included in other invested assets. This table excludes investments accounted for using the equity method and commercial mortgage loans that are accounted for at unpaid principal balance. The fair value of short-term investments approximates amortized cost.

(2)

See Note 8 to Notes to Consolidated Financial Statements set forth in Part II, Item 8, “Financial Statements and Supplementary Data” of the 2021 Form 10-K for additional information on the senior notes and other debt.

The following tables present Alleghany’s financial instruments at fair value and the level of the fair value hierarchy of inputs used as of June 30, 2022 and December 31, 2021:


	Level 1		Level 2		Level 3		Total
	($ in millions)
As of June 30, 2022
Equity securities:
Common stock	$	2,863.0	$	2.4	$	—	$	2,865.4
Preferred stock		—		2.7		1.3		4.0
Total equity securities		2,863.0		5.1		1.3		2,869.4
Debt securities:
U.S. Government obligations		—		1,538.5		—		1,538.5
Municipal bonds		—		2,626.8		—		2,626.8
Foreign government obligations		—		744.2		—		744.2
U.S. corporate bonds		—

ALLEGHANY CORP /DE 10-Q