ALLEGHANY CORP /DE

CIK:0000775368|SEC Filings

Consolidated Statements of Earnings and Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Revenues
Net premiums earned	$ 1,715,188	$ 1,784,351	$ 3,320,646	$ 3,389,114
Net investment income	105,452	126,931	218,928	280,415
Change in the fair value of equity securities	(500,223)	203,902	(639,000)	316,630
Net realized capital gains	11,167	12,942	1,164	25,873
Change in allowance for credit losses on available for sale securities	(7,595)	246	(8,177)	2,218
Product and service revenues	1,272,902	800,425	2,422,064	1,568,260
Total revenues	2,596,891	2,928,797	5,315,625	5,582,510
Costs and Expenses
Net loss and loss adjustment expenses	1,039,127	1,087,206	1,980,914	2,199,276
Commissions, brokerage and other underwriting expenses	510,935	523,513	988,100	999,549
Other operating expenses	1,149,986	739,592	2,178,878	1,463,481
Corporate administration	17,278	20,148	28,001	29,706
Amortization of intangible assets	14,941	12,431	29,023	23,909
Interest expense	28,544	24,037	60,654	47,789
Total costs and expenses	2,760,811	2,406,927	5,265,570	4,763,710
(Losses) earnings before income taxes	(163,920)	521,870	50,055	818,800
Income taxes	(40,033)	102,281	5,049	161,148
Net (losses) earnings	(123,887)	419,589	45,006	657,652
Net earnings attributable to noncontrolling interest	47,727	15,938	90,939	23,960
Net (losses) earnings attributable to Alleghany stockholders	(171,614)	403,651	(45,933)	633,692
Net earnings	(123,887)	419,589	45,006	657,652
Other comprehensive income (loss):
Change in unrealized gains, net of deferred taxes	(471,401)	91,560	(1,085,652)	(126,375)
Change in unrealized currency translation adjustment, net of deferred taxes	(25,707)	(2,249)	(26,230)	213
Retirement plans	109	113	239	(852)
Comprehensive (loss) income	(623,708)	498,594	(1,061,097)	508,446
Comprehensive income attributable to noncontrolling interests	47,727	15,938	90,939	23,960
Comprehensive (loss) income attributable to Alleghany stockholders	$ (671,435)	$ 482,656	$ (1,152,036)	$ 484,486
Basic (losses) earnings per share attributable to Alleghany stockholders	$ (12.75)	$ 29.00	$ (3.41)	$ 45.41
Diluted (losses) earnings per share attributable to Alleghany stockholders	$ (12.75)	$ 29.00	$ (3.41)	$ 45.41
Accumulated Net Unrealized Investment Gain Loss
Other comprehensive income (loss):
Less: reclassification for net realized capital gains and change in allowance for credit losses on available for sale securities, net of taxes	$ (2,822)	$ (10,419)	$ 5,540	$ (22,192)

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
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) loss	(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	0	(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)	0
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
Interest paid	56,316	46,116
Income taxes paid	$ 157,336	$ 76,931

Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Investments:
Equity securities	$ 2,869,444	$ 3,683,820
Debt securities, fair value	14,651,254	16,061,560
Short-term investments	1,624,444	1,142,258
Marketable Securities, Total	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	0
Net deferred tax assets	334,295	0
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	0	34,297
Net deferred tax liabilities	0	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	17,460	17,460
Contributed capital	3,575,815	3,608,905
Accumulated other comprehensive (loss) income	(964,281)	141,822
Treasury stock	(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