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Segments of Business (Tables)
 12 Months Ended
Dec. 31, 2021
Segment Reporting [Abstract]  
Results for Reportable Segments and Corporate Activities

The following tables present segment results for Alleghany’s three reportable segments and for corporate activities for 2021, 2020 and 2019:

 

 

 

Reinsurance Segment

 

 

Insurance Segment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended December 31, 2021

 

Property

 

 

Casualty &
specialty (1)

 

 

Total

 

 

RSUI

 

 

Cap
Specialty

 

 

Total

 

 

Subtotal

 

 

Alleghany
Capital

 

 

Total
Segments

 

 

Corporate
Activities

 

 

Consolidated

 

 

 

($ in millions)

 

 

 

 

Gross premiums written

 

$

1,975.2

 

 

$

4,058.8

 

 

$

6,034.0

 

 

$

2,067.6

 

 

$

475.2

 

 

$

2,542.8

 

 

$

8,576.8

 

 

$

—

 

 

$

8,576.8

 

 

$

(38.0

)

 

$

8,538.8

 

Net premiums written

 

 

1,550.4

 

 

 

3,837.0

 

 

 

5,387.4

 

 

 

1,354.7

 

 

 

407.3

 

 

 

1,762.0

 

 

 

7,149.4

 

 

 

—

 

 

 

7,149.4

 

 

 

—

 

 

 

7,149.4

 

Net premiums earned

 

 

1,708.8

 

 

 

3,768.3

 

 

 

5,477.1

 

 

 

1,230.7

 

 

 

389.9

 

 

 

1,620.6

 

 

 

7,097.7

 

 

 

—

 

 

 

7,097.7

 

 

 

—

 

 

 

7,097.7

 

Net loss and LAE

 

 

1,444.2

 

 

 

2,347.4

 

 

 

3,791.6

 

 

 

805.5

 

 

 

237.8

 

 

 

1,043.3

 

 

 

4,834.9

 

 

 

—

 

 

 

4,834.9

 

 

 

—

 

 

 

4,834.9

 

Commissions, brokerage and other underwriting expenses(2)

 

 

480.1

 

 

 

1,176.6

 

 

 

1,656.7

 

 

 

261.1

 

 

 

149.7

 

 

 

410.8

 

 

 

2,067.5

 

 

 

—

 

 

 

2,067.5

 

 

 

—

 

 

 

2,067.5

 

Underwriting (loss) profit(3)

 

$

(215.5

)

 

$

244.3

 

 

$

28.8

 

 

$

164.1

 

 

$

2.4

 

 

$

166.5

 

 

 

195.3

 

 

 

—

 

 

 

195.3

 

 

 

—

 

 

 

195.3

 

Net investment income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

509.0

 

 

 

(0.2

)

 

 

508.8

 

 

 

31.6

 

 

 

540.4

 

Change in the fair value of equity securities

 

 

 

457.1

 

 

 

—

 

 

 

457.1

 

 

 

49.7

 

 

 

506.8

 

Net realized capital gains

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

57.6

 

 

 

7.6

 

 

 

65.2

 

 

 

2.2

 

 

 

67.4

 

Change in allowance for credit losses on available for sale securities

 

 

 

2.0

 

 

 

—

 

 

 

2.0

 

 

 

0.1

 

 

 

2.1

 

Product and service revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

39.3

 

 

 

3,736.4

 

 

 

3,775.7

 

 

 

14.0

 

 

 

3,789.7

 

Other operating expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

88.9

 

 

 

3,387.8

 

 

 

3,476.7

 

 

 

2.9

 

 

 

3,479.6

 

Corporate administration

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(0.1

)

 

 

—

 

 

 

(0.1

)

 

 

57.3

 

 

 

57.2

 

Amortization of intangible assets

 

 

 

1.8

 

 

 

48.1

 

 

 

49.9

 

 

 

—

 

 

 

49.9

 

Interest expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

26.9

 

 

 

16.2

 

 

 

43.1

 

 

 

59.2

 

 

 

102.3

 

Earnings (losses) before income taxes

 

 

$

1,142.8

 

 

$

291.7

 

 

$

1,434.5

 

 

$

(21.8

)

 

$

1,412.7

 

 

 

 

Reinsurance Segment

 

 

Insurance Segment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended December 31, 2020

 

Property

 

 

Casualty &
specialty (1)

 

 

Total

 

 

RSUI

 

 

Cap
Specialty

 

 

Total

 

 

Subtotal

 

 

Alleghany
Capital

 

 

Total
Segments

 

 

Corporate
Activities

 

 

Consolidated

 

 

 

($ in millions)

 

 

 

 

Gross premiums written

 

$

1,761.7

 

 

$

3,475.6

 

 

$

5,237.3

 

 

$

1,714.4

 

 

$

411.3

 

 

$

2,125.7

 

 

$

7,363.0

 

 

$

—

 

 

$

7,363.0

 

 

$

(33.6

)

 

$

7,329.4

 

Net premiums written

 

 

1,439.6

 

 

 

3,405.4

 

 

 

4,845.0

 

 

 

1,124.8

 

 

 

374.6

 

 

 

1,499.4

 

 

 

6,344.4

 

 

 

—

 

 

 

6,344.4

 

 

 

—

 

 

 

6,344.4

 

Net premiums earned

 

 

1,379.7

 

 

 

3,265.0

 

 

 

4,644.7

 

 

 

1,008.8

 

 

 

346.7

 

 

 

1,355.5

 

 

 

6,000.2

 

 

 

—

 

 

 

6,000.2

 

 

 

—

 

 

 

6,000.2

 

Net loss and LAE

 

 

1,130.6

 

 

 

2,256.3

 

 

 

3,386.9

 

 

 

738.4

 

 

 

213.8

 

 

 

952.2

 

 

 

4,339.1

 

 

 

—

 

 

 

4,339.1

 

 

 

—

 

 

 

4,339.1

 

Commissions, brokerage and other underwriting expenses(2)

 

 

424.2

 

 

 

1,000.8

 

 

 

1,425.0

 

 

 

226.1

 

 

 

138.7

 

 

 

364.8

 

 

 

1,789.8

 

 

 

—

 

 

 

1,789.8

 

 

 

—

 

 

 

1,789.8

 

Underwriting (loss) profit(3)

 

$

(175.1

)

 

$

7.9

 

 

$

(167.2

)

 

$

44.3

 

 

$

(5.8

)

 

$

38.5

 

 

 

(128.7

)

 

 

—

 

 

 

(128.7

)

 

 

—

 

 

 

(128.7

)

Net investment income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

465.7

 

 

 

1.9

 

 

 

467.6

 

 

 

23.3

 

 

 

490.9

 

Change in the fair value of equity securities

 

 

 

(55.8

)

 

 

—

 

 

 

(55.8

)

 

 

(54.7

)

 

 

(110.5

)

Net realized capital gains

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

37.1

 

 

 

35.5

 

 

 

72.6

 

 

 

(69.5

)

 

 

3.1

 

Change in allowance for credit losses on available for sale securities

 

 

 

(8.0

)

 

 

—

 

 

 

(8.0

)

 

 

—

 

 

 

(8.0

)

Product and service revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

34.9

 

 

 

2,477.5

 

 

 

2,512.4

 

 

 

8.7

 

 

 

2,521.1

 

Other operating expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

103.6

 

 

 

2,310.0

 

 

 

2,413.6

 

 

 

15.7

 

 

 

2,429.3

 

Corporate administration

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(0.3

)

 

 

—

 

 

 

(0.3

)

 

 

48.9

 

 

 

48.6

 

Amortization of intangible assets

 

 

 

0.8

 

 

 

43.4

 

 

 

44.2

 

 

 

—

 

 

 

44.2

 

Interest expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

27.0

 

 

 

15.5

 

 

 

42.5

 

 

 

45.7

 

 

 

88.2

 

Earnings (losses) before income taxes

 

 

$

214.1

 

 

$

146.0

 

 

$

360.1

 

 

$

(202.5

)

 

$

157.6

 

 

 

 

 

Reinsurance Segment

 

 

Insurance Segment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended December 31, 2019

 

Property

 

 

Casualty &
specialty (1)

 

 

Total

 

 

RSUI

 

 

Cap
Specialty

 

 

Total

 

 

Subtotal

 

 

Alleghany
Capital

 

 

Total
Segments

 

 

Corporate
Activities

 

 

Consolidated

 

 

 

($ in millions)

 

Gross premiums written

 

$

1,700.3

 

 

$

3,245.4

 

 

$

4,945.7

 

 

$

1,366.6

 

 

$

371.8

 

 

$

1,738.4

 

 

$

6,684.1

 

 

$

—

 

 

$

6,684.1

 

 

$

(27.7

)

 

$

6,656.4

 

Net premiums written

 

 

1,328.8

 

 

 

3,166.2

 

 

 

4,495.0

 

 

 

912.0

 

 

 

344.7

 

 

 

1,256.7

 

 

 

5,751.7

 

 

 

—

 

 

 

5,751.7

 

 

 

—

 

 

 

5,751.7

 

Net premiums earned

 

 

1,280.1

 

 

 

3,046.9

 

 

 

4,327.0

 

 

 

824.2

 

 

 

326.9

 

 

 

1,151.1

 

 

 

5,478.1

 

 

 

—

 

 

 

5,478.1

 

 

 

—

 

 

 

5,478.1

 

Net loss and LAE

 

 

942.6

 

 

 

2,018.5

 

 

 

2,961.1

 

 

 

503.7

 

 

 

221.6

 

 

 

725.3

 

 

 

3,686.4

 

 

 

—

 

 

 

3,686.4

 

 

 

—

 

 

 

3,686.4

 

Commissions, brokerage and other underwriting expenses(2)

 

 

424.2

 

 

 

982.6

 

 

 

1,406.8

 

 

 

219.2

 

 

 

132.7

 

 

 

351.9

 

 

 

1,758.7

 

 

 

—

 

 

 

1,758.7

 

 

 

—

 

 

 

1,758.7

 

Underwriting (loss) profit(3)

 

$

(86.7

)

 

$

45.8

 

 

$

(40.9

)

 

$

101.3

 

 

$

(27.4

)

 

$

73.9

 

 

 

33.0

 

 

 

—

 

 

 

33.0

 

 

 

—

 

 

 

33.0

 

Net investment income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

533.2

 

 

 

6.3

 

 

 

539.5

 

 

 

10.7

 

 

 

550.2

 

Change in the fair value of equity securities

 

 

 

705.8

 

 

 

—

 

 

 

705.8

 

 

 

3.9

 

 

 

709.7

 

Net realized capital gains

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

6.0

 

 

 

1.0

 

 

 

7.0

 

 

 

(13.5

)

 

 

(6.5

)

Change in allowance for credit losses on available for sale securities

 

 

 

(19.7

)

 

 

—

 

 

 

(19.7

)

 

 

—

 

 

 

(19.7

)

Product and service revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

27.0

 

 

 

2,289.3

 

 

 

2,316.3

 

 

 

12.5

 

 

 

2,328.8

 

Other operating expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

103.1

 

 

 

2,132.9

 

 

 

2,236.0

 

 

 

27.3

 

 

 

2,263.3

 

Corporate administration

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

4.1

 

 

 

—

 

 

 

4.1

 

 

 

70.7

 

 

 

74.8

 

Amortization of intangible assets

 

 

 

1.3

 

 

 

32.5

 

 

 

33.8

 

 

 

—

 

 

 

33.8

 

Interest expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

27.1

 

 

 

20.1

 

 

 

47.2

 

 

 

52.8

 

 

 

100.0

 

Earnings (losses) before income taxes

 

 

$

1,149.7

 

 

$

111.1

 

 

$

1,260.8

 

 

$

(137.2

)

 

$

1,123.6

 

 

(1)
Primarily consists of the following reinsurance lines of business: directors’ and officers’ liability; errors and omissions liability; general liability; medical malpractice; ocean marine and aviation; auto liability; accident & health; mortgage reinsurance; surety; and credit.
(2)
Includes amortization associated with deferred acquisition costs of $1,693.1 million, $1,457.0 million and $1,392.8 million for the years ended December 31, 2021, 2020 and 2019, respectively.
(3)
Underwriting profit represents net premiums earned less net loss and LAE and commissions, brokerage and other underwriting expenses, all as determined in accordance with GAAP, and does not include net investment income, change in the fair value of equity securities, net realized capital gains, change in allowance for credit losses on available for sale securities, product and service revenues, other operating expenses, corporate administration, amortization of intangible assets or interest expense. Underwriting profit does not replace earnings before income taxes determined in accordance with GAAP as a measure of profitability. Rather, Alleghany believes that underwriting profit enhances the understanding of its reinsurance and insurance segments’ operating results by highlighting net earnings attributable to their underwriting performance. Earnings before income taxes (a GAAP measure) may show a profit despite an underlying underwriting loss. Where underwriting losses persist over extended periods, a reinsurance or an insurance company’s ability to continue as an ongoing concern may be at risk. Therefore, Alleghany views underwriting profit as an important measure in the overall evaluation of performance.
Summary of Identifiable Assets and Equity

The following table presents identifiable assets, the portion of identifiable assets related to cash and invested assets, and equity attributable to Alleghany, for Alleghany’s reportable segments and for corporate activities as of December 31, 2021:

 

 

 

Identifiable
Assets

 

 

Invested Assets
and Cash

 

 

Equity
Attributable to
Alleghany

 

 

 

($ in millions)

 

Reinsurance segment

 

$

19,048.2

 

 

$

15,208.8

 

 

$

5,398.4

 

Insurance segment

 

 

8,402.7

 

 

 

6,080.2

 

 

 

2,759.1

 

Subtotal

 

 

27,450.9

 

 

 

21,289.0

 

 

 

8,157.5

 

Alleghany Capital

 

 

3,368.0

 

 

 

165.9

 

 

 

1,337.9

 

Total segments

 

 

30,818.9

 

 

 

21,454.9

 

 

 

9,495.4

 

Corporate activities

 

 

1,449.7

 

 

 

1,394.5

 

 

 

(308.5

)

Consolidated

 

$

32,268.6

 

 

$

22,849.4

 

 

$

9,186.9

 
Summary of Alleghany Capital Product and Service Revenues

For Alleghany Capital’s industrial and consumer & services operations, product and service revenues consists of the sale of manufactured goods and services. The following table presents product and service revenues for the Alleghany Capital segment for 2021, 2020 and 2019:

 

 

 

Year Ended December 31,

 

 

 

2021

 

 

2020

 

 

2019

 

 

 

($ in millions)

 

Industrial(1)

 

$

1,662.3

 

 

$

1,220.9

 

 

$

1,105.6

 

Consumer & services(2)

 

 

2,074.1

 

 

 

1,256.5

 

 

 

1,183.7

 

Corporate & other

 

 

—

 

 

 

0.1

 

 

 

—

 

Alleghany Capital

 

$

3,736.4

 

 

$

2,477.5

 

 

$

2,289.3

 

 

(1)
For 2021, 2020 and 2019, the vast majority of industrial product and service revenues were recognized as goods and services transferred to customers over time.
(2)
For 2021, 2020 and 2019, approximately 50 percent, 59 percent and 70 percent, respectively, of consumer & services product and service revenues were recognized as services transferred to customers over time, with the remainder recognized as goods transferred at a point in time.