Reinsurance Ceded (Tables)

12 Months Ended

Dec. 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 December 31, 2012 and 2011 consist of the following (in millions):

	As of December 31,
	2012		2011
Reinsurance recoverables on paid losses	$	42.7	$	21.0
Ceded outstanding loss and LAE		1,305.9		831.8
Total reinsurance recoverables	$	1,348.6	$	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 December 31, 2012 is as follows (in millions, except percentages):

Reinsurer(1)	Rating(2)	Amount		Percentage
Swiss Reinsurance Company	A+ (Superior)	$	171.4		12.7	%
American International Group, Inc.	A (Excellent)		108.3		8.0
PartnerRe Ltd.	A+(Superior)		101.8		7.5
Syndicates at Lloyd’s of London	A (Excellent)		95.6		7.1
Platinum Underwriters Holdings, Ltd.	A (Excellent)		92.0		6.8
All other reinsurers			779.5		57.9
Total reinsurance recoverables(3)		$	1,348.6		100.0	%
Secured reinsurance recoverables(4)		$	204.6		15.2	%

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

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

(3) Approximately 92.5 percent of Alleghany’s reinsurance recoverables balance as of December 31, 2012 was due from reinsurers having an A.M. Best Company financial strength rating of “A” (Excellent) or higher.

Property and Casualty Premiums Written and Earned

following table indicates property and casualty premiums written and earned for 2012, 2011 and 2010 (in millions):

	Years Ended December 31,
	2012			2011			2010
Gross premiums written — direct	$	1,231.4		$	1,088.6		$	1,080.5
Gross premiums written — assumed*		2,991.5			52.4			23.5
Ceded premiums written*		(499.0	)		(366.3	)		(367.8	)
Net premiums written	$	3,723.9		$	774.7		$	736.2
Gross premiums earned — direct	$	1,161.5		$	1,069.1		$	1,131.7
Gross premiums earned — assumed*		3,093.5			45.9			21.0
Ceded premiums earned*		(522.0	)		(367.4	)		(384.6	)
Net premiums earned	$	3,733.0		$	747.6		$	768.1

* Amounts for 2012 include TransRe amounts from the Acquisition Date through December 31, 2012. See Note 2 for additional information on TransRe.