Stockholders' Equity

3 Months Ended

Mar. 31, 2021

7. Stockholders’ Equity

(a) Common Stock Repurchases

In June 2018, the Alleghany Board of Directors authorized the repurchase of shares of common stock of Alleghany, par value $1.00 per share (“Common Stock”), at such times and at prices as management determines to be advisable, up to an aggregate of $400.0 million. In September 2019, the Alleghany Board of Directors authorized, upon the completion of the program authorized in 2018, the repurchase of additional shares of Common Stock at such times and at prices as management determines to be advisable, up to an aggregate of $500.0 million. As of March 31, 2021, Alleghany had $369.2 million remaining under its share repurchase authorizations.

The following table presents the shares of Common Stock that Alleghany repurchased in the three months ended March 31, 2021 and 2020:

	Three Months Ended March 31,
	2021		2020
Shares repurchased		103,025		62,540
Cost of shares repurchased (in millions)	$	63.2	$	44.3
Average price per share repurchased	$	613.36	$	707.84

(b) Accumulated Other Comprehensive Income (Loss)

The following tables present a reconciliation of the changes during the three months ended March 31, 2021 and 2020 in accumulated other comprehensive income (loss) attributable to Alleghany stockholders:

	Unrealized Appreciation of Investments			Unrealized Currency Translation Adjustment			Retirement Plans			Total
	($ in millions)
Balance as of January 1, 2021	$	564.9		$	(99.4	)	$	(13.1	)	$	452.4
Other comprehensive income (loss), net of tax:
Other comprehensive (loss) income before reclassifications		(217.9	)		2.5			(1.0	)		(216.4	)
Reclassifications from accumulated other comprehensive income		(11.8	)		—			—			(11.8	)
Total		(229.7	)		2.5			(1.0	)		(228.2	)
Balance as of March 31, 2021	$	335.2		$	(96.9	)	$	(14.1	)	$	224.2

	Unrealized Appreciation of Investments			Unrealized Currency Translation Adjustment			Retirement Plans			Total
	($ in millions)
Balance as of January 1, 2020	$	321.0		$	(121.8	)	$	(27.9	)	$	171.3
Other comprehensive income (loss), net of tax:
Other comprehensive (loss) income before reclassifications		(276.6	)		(13.7	)		0.5			(289.8	)
Reclassifications from accumulated other comprehensive income		(10.9	)		—			—			(10.9	)
Total		(287.5	)		(13.7	)		0.5			(300.7	)
Balance as of March 31, 2020	$	33.5		$	(135.5	)	$	(27.4	)	$	(129.4	)

The following table presents unrealized appreciation of investment reclassifications out of accumulated other comprehensive income (loss) attributable to Alleghany stockholders during the three months ended March 31, 2021 and 2020:

Accumulated Other		Three Months Ended March 31,
Comprehensive Income Component	Line in Consolidated Statement of Earnings	2021			2020
		($ in millions)
Unrealized appreciation of investments:	Net realized capital gains⁽¹⁾	$	(12.9	)	$	(45.1	)
	Change in allowance for credit losses on available for sale securities		(2.0	)		31.4
	Income taxes		3.1			2.8
Total reclassifications:	Net (earnings) losses	$	(11.8	)	$	(10.9	)

(1)

For the three months ended March 31, 2020, excludes: (i) a $7.1 million realized loss as a result of an early redemption of debt (Note 8 to Notes to Consolidated Financial Statements set forth in Part II, Item 8, “Financial Statements and Supplementary Data” of the 2020 Form 10-K for further information); (ii) $30.0 million of impairment charges from a write-down of SORC oil field assets; and (iii) a $5.0 million realized gain resulting from a reduction of certain PCT contingent consideration liabilities (see Note 3(e) of this Form 10-Q for additional information).

In February 2020, the Alleghany Board of Directors declared a special dividend of $15.00 per share for stockholders of record on March 5, 2020. On March 16, 2020, Alleghany paid dividends to stockholders totaling $215.0 million.