XML 39 R29.htm IDEA: XBRL DOCUMENT v3.22.2
Segments of Business (Tables)
 6 Months Ended
Jun. 30, 2022
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 the three and six months ended June 30, 2022 and 2021:

 

 

 

Reinsurance Segment

 

 

Insurance Segment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended
June 30, 2022

 

Property

 

 

Casualty &
specialty(1)

 

 

Total

 

 

RSUI

 

 

Cap
Specialty

 

 

Total

 

 

Subtotal

 

 

Alleghany
Capital

 

 

Total
Segments

 

 

Corporate Activities

 

 

Consolidated

 

 

($ in millions)

 

Gross premiums written

 

$

380.3

 

 

$

1,049.1

 

 

$

1,429.4

 

 

$

686.8

 

 

$

131.6

 

 

$

818.4

 

 

$

2,247.8

 

 

$

—

 

 

$

2,247.8

 

 

$

(9.8

)

 

$

2,238.0

 

Net premiums written

 

 

286.4

 

 

 

993.9

 

 

 

1,280.3

 

 

 

441.8

 

 

 

107.9

 

 

 

549.7

 

 

 

1,830.0

 

 

 

—

 

 

 

1,830.0

 

 

 

—

 

 

 

1,830.0

 

Net premiums earned

 

 

305.8

 

 

 

953.3

 

 

 

1,259.1

 

 

 

360.4

 

 

 

95.7

 

 

 

456.1

 

 

 

1,715.2

 

 

 

—

 

 

 

1,715.2

 

 

 

—

 

 

 

1,715.2

 

Net loss and LAE

 

 

177.4

 

 

 

596.2

 

 

 

773.6

 

 

 

202.4

 

 

 

63.1

 

 

 

265.5

 

 

 

1,039.1

 

 

 

—

 

 

 

1,039.1

 

 

 

—

 

 

 

1,039.1

 

Commissions, brokerage and
   other underwriting expenses

 

 

92.2

 

 

 

304.9

 

 

 

397.1

 

 

 

76.3

 

 

 

37.5

 

 

 

113.8

 

 

 

510.9

 

 

 

—

 

 

 

510.9

 

 

 

—

 

 

 

510.9

 

Underwriting profit (loss)(2)

 

$

36.2

 

 

$

52.2

 

 

$

88.4

 

 

$

81.7

 

 

$

(4.9

)

 

$

76.8

 

 

 

165.2

 

 

 

—

 

 

 

165.2

 

 

 

—

 

 

 

165.2

 

Net investment income

 

 

 

117.8

 

 

 

(0.1

)

 

 

117.7

 

 

 

(12.2

)

 

 

105.5

 

Change in the fair value of equity securities

 

 

 

(405.1

)

 

 

—

 

 

 

(405.1

)

 

 

(95.1

)

 

 

(500.2

)

Net realized capital gains

 

 

 

3.0

 

 

 

8.1

 

 

 

11.1

 

 

 

—

 

 

 

11.1

 

Change in allowance for credit losses on available for sale securities

 

 

 

(7.6

)

 

 

—

 

 

 

(7.6

)

 

 

—

 

 

 

(7.6

)

Product and service revenues

 

 

 

6.6

 

 

 

1,262.3

 

 

 

1,268.9

 

 

 

4.0

 

 

 

1,272.9

 

Other operating expenses

 

 

 

11.1

 

 

 

1,138.4

 

 

 

1,149.5

 

 

 

0.6

 

 

 

1,150.1

 

Corporate administration

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

17.3

 

 

 

17.3

 

Amortization of intangible assets

 

 

 

0.3

 

 

 

14.6

 

 

 

14.9

 

 

 

—

 

 

 

14.9

 

Interest expense

 

 

 

6.7

 

 

 

5.3

 

 

 

12.0

 

 

 

16.5

 

 

 

28.5

 

(Losses) earnings before income taxes

 

 

$

(138.2

)

 

$

112.0

 

 

$

(26.2

)

 

$

(137.7

)

 

$

(163.9

)

 

 

 

Reinsurance Segment

 

 

Insurance Segment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended
June 30, 2021

 

Property

 

 

Casualty &
specialty(1)

 

 

Total

 

 

RSUI

 

 

Cap
Specialty

 

 

Total

 

 

Subtotal

 

 

Alleghany
Capital

 

 

Total
Segments

 

 

Corporate Activities

 

 

Consolidated

 

 

($ in millions)

 

Gross premiums written

 

$

505.4

 

 

$

1,041.1

 

 

$

1,546.5

 

 

$

557.6

 

 

$

123.4

 

 

$

681.0

 

 

$

2,227.5

 

 

$

—

 

 

$

2,227.5

 

 

$

(7.6

)

 

$

2,219.9

 

Net premiums written

 

 

419.9

 

 

 

989.2

 

 

 

1,409.1

 

 

 

363.7

 

 

 

105.4

 

 

 

469.1

 

 

 

1,878.2

 

 

 

—

 

 

 

1,878.2

 

 

 

—

 

 

 

1,878.2

 

Net premiums earned

 

 

438.9

 

 

 

954.3

 

 

 

1,393.2

 

 

 

296.3

 

 

 

94.9

 

 

 

391.2

 

 

 

1,784.4

 

 

 

—

 

 

 

1,784.4

 

 

 

—

 

 

 

1,784.4

 

Net loss and LAE

 

 

273.7

 

 

 

570.0

 

 

 

843.7

 

 

 

186.9

 

 

 

56.6

 

 

 

243.5

 

 

 

1,087.2

 

 

 

—

 

 

 

1,087.2

 

 

 

—

 

 

 

1,087.2

 

Commissions, brokerage and
   other underwriting expenses

 

 

123.7

 

 

 

301.6

 

 

 

425.3

 

 

 

60.6

 

 

 

37.6

 

 

 

98.2

 

 

 

523.5

 

 

 

—

 

 

 

523.5

 

 

 

—

 

 

 

523.5

 

Underwriting profit(2)

 

$

41.5

 

 

$

82.7

 

 

$

124.2

 

 

$

48.8

 

 

$

0.7

 

 

$

49.5

 

 

 

173.7

 

 

 

—

 

 

 

173.7

 

 

 

—

 

 

 

173.7

 

Net investment income

 

 

 

136.6

 

 

 

—

 

 

 

136.6

 

 

 

(9.7

)

 

 

126.9

 

Change in the fair value of equity securities

 

 

 

169.5

 

 

 

—

 

 

 

169.5

 

 

 

34.4

 

 

 

203.9

 

Net realized capital gains

 

 

 

12.8

 

 

 

0.2

 

 

 

13.0

 

 

 

(0.1

)

 

 

12.9

 

Change in allowance for credit losses on available for sale securities

 

 

 

0.2

 

 

 

—

 

 

 

0.2

 

 

 

—

 

 

 

0.2

 

Product and service revenues

 

 

 

11.1

 

 

 

789.2

 

 

 

800.3

 

 

 

0.1

 

 

 

800.4

 

Other operating expenses

 

 

 

15.1

 

 

 

724.1

 

 

 

739.2

 

 

 

0.3

 

 

 

739.5

 

Corporate administration

 

 

 

0.4

 

 

 

—

 

 

 

0.4

 

 

 

19.8

 

 

 

20.2

 

Amortization of intangible assets

 

 

 

0.8

 

 

 

11.6

 

 

 

12.4

 

 

 

—

 

 

 

12.4

 

Interest expense

 

 

 

6.7

 

 

 

3.7

 

 

 

10.4

 

 

 

13.6

 

 

 

24.0

 

Earnings (losses) before income taxes

 

 

$

480.9

 

 

$

50.0

 

 

$

530.9

 

 

$

(9.0

)

 

$

521.9

 

 

 

 

Reinsurance Segment

 

 

Insurance Segment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months Ended
June 30, 2022

 

Property

 

 

Casualty &
specialty(1)

 

 

Total

 

 

RSUI

 

 

Cap
Specialty

 

 

Total

 

 

Subtotal

 

 

Alleghany
Capital

 

 

Total
Segments

 

 

Corporate Activities

 

 

Consolidated

 

 

($ in millions)

 

Gross premiums written

 

$

834.7

 

 

$

2,123.0

 

 

$

2,957.7

 

 

$

1,204.3

 

 

$

243.7

 

 

$

1,448.0

 

 

$

4,405.7

 

 

$

—

 

 

$

4,405.7

 

 

$

(20.7

)

 

$

4,385.0

 

Net premiums written

 

 

633.0

 

 

 

2,005.3

 

 

 

2,638.3

 

 

 

783.8

 

 

 

200.7

 

 

 

984.5

 

 

 

3,622.8

 

 

 

—

 

 

 

3,622.8

 

 

 

—

 

 

 

3,622.8

 

Net premiums earned

 

 

597.3

 

 

 

1,824.6

 

 

 

2,421.9

 

 

 

706.8

 

 

 

191.9

 

 

 

898.7

 

 

 

3,320.6

 

 

 

—

 

 

 

3,320.6

 

 

 

—

 

 

 

3,320.6

 

Net loss and LAE

 

 

339.5

 

 

 

1,157.1

 

 

 

1,496.6

 

 

 

361.8

 

 

 

122.5

 

 

 

484.3

 

 

 

1,980.9

 

 

 

—

 

 

 

1,980.9

 

 

 

—

 

 

 

1,980.9

 

Commissions, brokerage and
   other underwriting expenses

 

 

178.9

 

 

 

586.5

 

 

 

765.4

 

 

 

148.5

 

 

 

74.2

 

 

 

222.7

 

 

 

988.1

 

 

 

—

 

 

 

988.1

 

 

 

—

 

 

 

988.1

 

Underwriting profit (loss)(2)

 

$

78.9

 

 

$

81.0

 

 

$

159.9

 

 

$

196.5

 

 

$

(4.8

)

 

$

191.7

 

 

 

351.6

 

 

 

—

 

 

 

351.6

 

 

 

—

 

 

 

351.6

 

Net investment income

 

 

 

226.1

 

 

 

—

 

 

 

226.1

 

 

 

(7.2

)

 

 

218.9

 

Change in the fair value of equity securities

 

 

 

(559.2

)

 

 

—

 

 

 

(559.2

)

 

 

(79.8

)

 

 

(639.0

)

Net realized capital gains

 

 

 

(12.9

)

 

 

14.2

 

 

 

1.3

 

 

 

(0.1

)

 

 

1.2

 

Change in allowance for credit losses on available for sale securities

 

 

 

(8.2

)

 

 

—

 

 

 

(8.2

)

 

 

—

 

 

 

(8.2

)

Product and service revenues

 

 

 

14.7

 

 

 

2,383.6

 

 

 

2,398.3

 

 

 

23.8

 

 

 

2,422.1

 

Other operating expenses

 

 

 

24.6

 

 

 

2,151.7

 

 

 

2,176.3

 

 

 

2.5

 

 

 

2,178.8

 

Corporate administration

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

28.0

 

 

 

28.0

 

Amortization of intangible assets

 

 

 

0.7

 

 

 

28.3

 

 

 

29.0

 

 

 

—

 

 

 

29.0

 

Interest expense

 

 

 

13.5

 

 

 

11.0

 

 

 

24.5

 

 

 

36.2

 

 

 

60.7

 

(Losses) earnings before income taxes

 

 

$

(26.7

)

 

$

206.8

 

 

$

180.1

 

 

$

(130.0

)

 

$

50.1

 

 

 

 

Reinsurance Segment

 

 

Insurance Segment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months Ended
June 30, 2021

 

Property

 

 

Casualty &
specialty(1)

 

 

Total

 

 

RSUI

 

 

Cap
Specialty

 

 

Total

 

 

Subtotal

 

 

Alleghany
Capital

 

 

Total
Segments

 

 

Corporate
Activities

 

 

Consolidated

 

 

($ in millions)

 

Gross premiums written

 

$

1,070.7

 

 

$

2,014.0

 

 

$

3,084.7

 

 

$

978.4

 

 

$

225.7

 

 

$

1,204.1

 

 

$

4,288.8

 

 

$

—

 

 

$

4,288.8

 

 

$

(18.6

)

 

$

4,270.2

 

Net premiums written

 

 

878.9

 

 

 

1,925.1

 

 

 

2,804.0

 

 

 

636.2

 

 

 

192.8

 

 

 

829.0

 

 

 

3,633.0

 

 

 

—

 

 

 

3,633.0

 

 

 

—

 

 

 

3,633.0

 

Net premiums earned

 

 

810.2

 

 

 

1,812.8

 

 

 

2,623.0

 

 

 

579.9

 

 

 

186.2

 

 

 

766.1

 

 

 

3,389.1

 

 

 

—

 

 

 

3,389.1

 

 

 

—

 

 

 

3,389.1

 

Net loss and LAE

 

 

597.2

 

 

 

1,095.5

 

 

 

1,692.7

 

 

 

395.1

 

 

 

111.5

 

 

 

506.6

 

 

 

2,199.3

 

 

 

—

 

 

 

2,199.3

 

 

 

—

 

 

 

2,199.3

 

Commissions, brokerage and
   other underwriting expenses

 

 

232.9

 

 

 

568.3

 

 

 

801.2

 

 

 

124.7

 

 

 

73.6

 

 

 

198.3

 

 

 

999.5

 

 

 

—

 

 

 

999.5

 

 

 

—

 

 

 

999.5

 

Underwriting (loss) profit(2)

 

$

(19.9

)

 

$

149.0

 

 

$

129.1

 

 

$

60.1

 

 

$

1.1

 

 

$

61.2

 

 

 

190.3

 

 

 

—

 

 

 

190.3

 

 

 

—

 

 

 

190.3

 

Net investment income

 

 

 

259.7

 

 

 

—

 

 

 

259.7

 

 

 

20.7

 

 

 

280.4

 

Change in the fair value of equity securities

 

 

 

254.8

 

 

 

—

 

 

 

254.8

 

 

 

61.8

 

 

 

316.6

 

Net realized capital gains

 

 

 

23.3

 

 

 

1.2

 

 

 

24.5

 

 

 

1.4

 

 

 

25.9

 

Change in allowance for credit losses on available for sale securities

 

 

 

2.1

 

 

 

—

 

 

 

2.1

 

 

 

0.1

 

 

 

2.2

 

Product and service revenues

 

 

 

19.7

 

 

 

1,548.4

 

 

 

1,568.1

 

 

 

0.2

 

 

 

1,568.3

 

Other operating expenses

 

 

 

29.5

 

 

 

1,433.4

 

 

 

1,462.9

 

 

 

0.6

 

 

 

1,463.5

 

Corporate administration

 

 

 

(0.2

)

 

 

—

 

 

 

(0.2

)

 

 

29.9

 

 

 

29.7

 

Amortization of intangible assets

 

 

 

1.0

 

 

 

22.9

 

 

 

23.9

 

 

 

—

 

 

 

23.9

 

Interest expense

 

 

 

13.4

 

 

 

7.5

 

 

 

20.9

 

 

 

26.9

 

 

 

47.8

 

Earnings before income taxes

 

 

$

706.2

 

 

$

85.8

 

 

$

792.0

 

 

$

26.8

 

 

$

818.8

 

 

(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 and health; mortgage reinsurance; surety; and credit.
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 June 30, 2022:

 

 

 

Identifiable
Assets

 

 

Invested Assets
and Cash

 

 

Equity
Attributable to
Alleghany

 

 

 

($ in millions)

 

Reinsurance segment

 

$

18,104.6

 

 

$

14,073.0

 

 

$

4,402.5

 

Insurance segment

 

 

8,480.5

 

 

 

5,860.2

 

 

 

2,504.6

 

Subtotal

 

 

26,585.1

 

 

 

19,933.2

 

 

 

6,907.1

 

Alleghany Capital

 

 

3,536.3

 

 

 

228.9

 

 

 

1,368.2

 

Total segments

 

 

30,121.4

 

 

 

20,162.1

 

 

 

8,275.3

 

Corporate activities

 

 

886.5

 

 

 

914.2

 

 

 

(368.6

)

Consolidated

 

$

31,007.9

 

 

$

21,076.3

 

 

$

7,906.7

 
Summary of Alleghany Capital Product and Service Revenues

For Alleghany Capital’s industrial and consumer & services operations, product and service revenues consist of the sale of manufactured goods and services. The following table presents product and service revenues for the Alleghany Capital segment for the three and six months ended June 30, 2022 and 2021:

 

 

 

Three Months Ended
June 30,

 

 

Six Months Ended
June 30,

 

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

 

 

($ in millions)

 

Industrial(1)

 

$

508.6

 

 

$

407.2

 

 

$

970.1

 

 

$

811.7

 

Consumer & services(2)

 

 

753.7

 

 

 

382.0

 

 

 

1,413.5

 

 

 

736.7

 

Alleghany Capital

 

$

1,262.3

 

 

$

789.2

 

 

$

2,383.6

 

 

$

1,548.4

 

 

(1)
For the three and six months ended June 30, 2022 and 2021, the vast majority of industrial product and service revenues were recognized as goods and services transferred to customers over time.
(2)
For the three and six months ended June 30, 2022, approximately 55 percent and 57 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. For the three and six months ended June 30, 2021, approximately 55 percent and 59 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.