Goodwill and Intangible Assets (Tables)

12 Months Ended

Dec. 31, 2017

Goodwill and Intangible Asset, Net of Accumulated Amortization Expense on Consolidated Balance Sheets

The following table presents the amount of goodwill and intangible assets, net of accumulated amortization expense, reported on Alleghany’s consolidated balance sheets as of December 31, 2017 and 2016:

	December 31, 2017						December 31, 2016
	Gross Carrying  Value		Accumulated   Amortization		Net Carrying  Value(1)		Gross   Carrying   Value		Accumulated   Amortization		Net Carrying  Value(1)
	($ in millions)
Insurance Segment(2) - Goodwill	$	49.0	$	-	$	49.0	$	49.0	$	-	$	49.0
Insurance Segment - Intangible assets:
Agency relationships		17.9		10.6		7.3		17.9		9.8		8.1
State insurance licenses		25.1		-		25.1		25.8		-		25.8
Trade name		35.5		-		35.5		35.5		-		35.5
Brokerage and reinsurance relationships		33.8		32.7		1.1		33.8		30.4		3.4
Renewal rights		24.2		24.1		0.1		24.2		24.1		0.1
Other		4.1		4.1		-		4.1		4.1		-
Total insurance segment intangibles		140.6		71.5		69.1		141.3		68.4		72.9
Total insurance segment goodwill and other intangibles	$	189.6	$	71.5	$	118.1	$	190.3	$	68.4	$	121.9
Reinsurance Segment(2) - Goodwill	$	8.8	$	-	$	8.8	$	-	$	-	$	-
Reinsurance Segment - Intangible assets:
Value of business in-force		291.4		291.4		-		291.4		291.4		-
Loss and LAE reserves		(98.8)		(78.6)		(20.2)		(98.8)		(72.7)		(26.1)
State and foreign insurance licenses		19.0		-		19.0		19.0		-		19.0
Trade name		50.0		-		50.0		50.0		-		50.0
Renewal rights		44.0		21.8		22.2		44.0		17.8		26.2
Leases		(28.1)		(16.7)		(11.4)		(28.1)		(13.8)		(14.3)
Other		15.1		10.2		4.9		10.0		10.0		-
Total reinsurance segment intangibles		292.6		228.1		64.5		287.5		232.7		54.8
Total reinsurance segment goodwill and other intangibles	$	301.4	$	228.1	$	73.3	$	287.5	$	232.7	$	54.8
Other Activities(2)(3) - Goodwill	$	277.1	$	-	$	277.1	$	236.0	$	-	$	236.0
Other Activities(3) - Intangible assets:
Trade name		151.9		-		151.9		126.6		-		126.6
License agreements		66.2		14.1		52.1		66.2		5.9		60.3
Customer relationships		133.2		20.5		112.7		63.2		4.6		58.6
Other		20.8		12.1		8.7		20.8		15.3		5.5
Total other activities intangibles		372.1		46.7		325.4		276.8		25.8		251.0
Total other activities goodwill and other intangibles	$	649.2	$	46.7	$	602.5	$	512.8	$	25.8	$	487.0
Alleghany consolidated:
Goodwill	$	334.9	$	-	$	334.9	$	285.0	$	-	$	285.0
Intangible assets		805.3		346.3		459.0		705.6		326.9		378.7
Goodwill and other intangibles assets	$	1,140.2	$	346.3	$	793.9	$	990.6	$	326.9	$	663.7

(1) Goodwill and intangible assets have been reduced by amounts written-down in prior periods.

(2) See Note 13 for additional information on Alleghany’s segments of business.

(3) Primarily represents goodwill and other intangible assets related to the acquisition of: (i) W&W|AFCO Steel on April 28, 2017; (ii) Jazwares on April 15, 2016; (iii) IPS on October 31, 2015; (iv) Bourn & Koch on April 26, 2012; and (v) a controlling equity interest in Kentucky Trailer on August 30, 2013. Also reflects minor acquisitions made by Jazwares and Bourn & Koch in 2016 and Kentucky Trailer in 2015 and 2014.