Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - ALLEGHANY CORP /DE | d486935d8k.htm |
 Alleghany
Exhibit 99.1 |
 FORWARD-LOOKING STATEMENTS
This
presentation
contains
“forward-looking
statements”
within
the
meaning
of the Private Securities Litigation Reform Act of 1995. These forward-looking
statements are not historical facts but instead represent only Alleghany’s
belief regarding future events, many of which, by their nature, are inherently
uncertain and outside Alleghany’s control. Except for Alleghany’s ongoing
obligation to disclose material information as required by federal securities
laws, Alleghany is not under any obligation (and expressly disclaims any
obligation) to update or alter any projections, goals, assumptions, or other
statements, whether written or oral, that may be made from time to time,
whether as a result of new information, future events or otherwise. Factors
that could cause Alleghany’s actual results and experience to differ, possibly
materially, from those expressed in the forward-looking statements include
the factors set forth in Alleghany’s most recent Annual Report on Form 10-K
and Quarterly Reports on Form 10-Q filed with the United States Securities
and Exchange Commission.
Alleghany |
 Timeline
Otis & Mantis Van Sweringen (1929)
Robert Young (1937)
Allan Kirby (1958)
F.M. Kirby (1967)
John J. Burns, Jr. (1992)
Weston M. Hicks (2004)
Alleghany |
 A Rich
History Nickel Plate Railroad
Chesapeake & Ohio Railroad
New York Central
MSL Industries
Jones Motor
World Minerals
Investors Diversified Services
Chicago Title & Trust
Sacramento Savings Bank
Underwriters Re
Alleghany |
 Alleghany 10
Years Ago ($ bn) Capitol Transamerica
$ 0.2
15%
World Minerals
0.2
15
Other
0.1
6
Operating subsidiaries
$ 0.5
36%
Parent investments
$ 1.0
71%
Parent debt, other
(0.1)
-
Parent, net
$ 0.9
64%
Stockholders’
equity
$ 1.4
100%
Alleghany |
 Alleghany
Reinvented: 2002-2012 (2002)
(2003)
(2006)
(2007)
(2012)
Alleghany |
 Alleghany Today
($ bn) TransRe
$ 4.3
67%
RSUI Group
1.5
23
Other
0.5
9
(Re)insurance
$ 6.3
99%
Parent investments
$ 0.9
14%
Parent debt, other
(0.8)
(13)
Parent, net
$ 0.1
1%
Stockholders’
equity
$ 6.4
100%
Alleghany |
 TransRe
•
Acquired March 6, 2012 for $3.5 billion in cash
and stock
•
Leading specialty professional reinsurer with
49% of premium outside of US
•
Produced an underwriting profit in first ten
months of Alleghany ownership
•
Expect combined ratio of ~ 96% absent
unusual large catastrophes
Alleghany |
 RSUI Group
•
Acquired July 1, 2003 from Royal & Sun
Alliance; initial investment $626 million
•
Cumulative underwriting profits of $1.1 billion
under Alleghany ownership
•
Stockholder’s equity now $1.5 billion at the
end of 2012 …
after net upstream cash flows
of $300 million
•
Long-term average combined ratio of 81%
including
Katrina
and
Sandy
Alleghany |
 RSUI’s
Combined Ratio Alleghany
60%
86%
122%
71%
69%
80%
70%
73%
82%
99%
03
04
05
06
07
08
09
10
11
12 |
 RSUI’s
Combined Ratio Ex Katrina (2005) and Sandy (2012)
Alleghany |
 Other Insurance
Operations •
Capitol Insurance Companies –
Small
commercial property-casualty and surety
•
PacificComp
–
California workers’
compensation
•
Homesite
(33% ownership) –
Mono-line
homeowners specialty insurer
Alleghany |
 Alleghany
Capital Partners •
Bourn & Koch (80%) –
machine tools and
grinders
•
Stranded Oil Resources (80%) –
oil recovery
•
ORX Exploration (38%) –
high impact oil and
gas exploration
•
Article One Partners (40%) –
crowd-sourced
patent validation
Alleghany |
 Opportunities
•
Better underlying economy = exposure growth
•
Improving pricing in property lines and select
casualty lines
•
Standard market dislocation = E&S
opportunity
•
Improved competitive position at Capitol and
PacificComp
•
Share repurchases at discount to book value
Alleghany |
 Challenges
•
Negative real interest rates hurts economics
of the business
•
Observed increase in frequency of severe
weather events
•
Relentless claims inflation in California
workers’
compensation
Alleghany |
 Alleghany |
 Y Book Value
Per Share Alleghany |