Reinsurance Ceded (Tables)

3 Months Ended

Mar. 31, 2012

Reinsurance Recoverables

Amounts recoverable from reinsurers are recognized in a manner consistent with the claims liabilities associated with the reinsurance placement and presented on the balance sheet as reinsurance recoverables. Such balances as of March 31, 2012 and December 31, 2011 consist of the following (in millions):

	March 31, 2012		December 31, 2011
Reinsurance recoverables on paid losses	$	68.0	$	21.0
Ceded outstanding loss and LAE		1,256.4		831.8
Total reinsurance recoverables	$	1,324.4	$	852.8

Information Regarding Concentration of Reinsurance Recoverables and Ratings Profile of its Reinsurers

Information regarding concentration of Alleghany’s reinsurance recoverables and the ratings profile of its reinsurers as of March 31, 2012 is as follows (dollars in millions):

Reinsurer(1)	Rating(2)	Amount		Percentage
Swiss Reinsurance Company	A+(Superior)	$	166.6		12.6	%
Chartis, Inc., a subsidiary of AIG	A (Excellent)		109.0		8.2
Platinum Underwriters Holdings, Ltd.	A (Excellent)		97.1		7.3
PartnerRe Ltd.	A+(Superior)		89.6		6.8
Syndicates at Lloyd’s	A (Excellent)		87.3		6.6
All other reinsurers(3)			774.8		58.5
Total reinsurance recoverables		$	1,324.4		100.0	%
Secured reinsurance recoverables(4)		$	191.1		14.4	%

(1) Reinsurance recoverables reflect amounts due from one or more reinsurance subsidiaries of the listed company.

(2) Represents the A.M. Best Company rating for the applicable reinsurance subsidiary or subsidiaries from which the reinsurance recoverable is due.

(3) Approximately 86.8 percent of Alleghany’s reinsurance recoverables balance as of March 31, 2012 was due from reinsurers having an A.M. Best Company financial strength rating of “A-” (Excellent) or higher.

(4) Represents reinsurance recoverables secured by funds held, trust agreements and letters of credit.

Property and Casualty Premiums Written and Earned

The following table indicates property and casualty premiums written and earned for the three months ended March 31, 2012 and March 31, 2011 (in millions):

	Three Months Ended March 31,
	2012			2011
Gross premiums written – direct	$	269.4		$	240.8
Gross premiums written – assumed*		265.2			9.4
Ceded premiums written*		(100.4	)		(83.6	)
Net premiums written	$	434.2		$	166.6
Gross premiums earned – direct	$	273.3		$	263.5
Gross premiums earned – assumed*		262.2			7.4
Ceded premiums earned*		(101.3	)		(89.9	)
Net premiums earned	$	434.2		$	181.0

* Includes Transatlantic amounts from the Acquisition Date through March 31, 2012. See Note 2.