Stockholders' Equity

3 Months Ended

Mar. 31, 2020

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, 2020, Alleghany had $582.9 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, 2020 and 2019:

	Three Months Ended March 31,
	2020		2019
Shares repurchased		62,540		129,567
Cost of shares repurchased (in millions)	$	44.3	$	80.5
Average price per share repurchased	$	707.84	$	621.19

(b) Accumulated Other Comprehensive Income (Loss)

The following tables present a reconciliation of the changes during the three months ended March 31, 2020 and 2019 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, 2020	$	321.0		$	(121.8	)	$	(27.9	)	$	171.3
Other comprehensive income (loss), net of tax:
Other comprehensive income (loss) 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	)

	Unrealized Appreciation of Investments			Unrealized Currency Translation Adjustment			Retirement Plans			Total
	($ in millions)
Balance as of January 1, 2019	$	(61.6	)	$	(124.7	)	$	(15.7	)	$	(202.0	)
Other comprehensive income (loss), net of tax:
Other comprehensive income (loss) before reclassifications		183.4			(0.9	)		0.9			183.4
Reclassifications from accumulated other comprehensive income		4.4			—			—			4.4
Total		187.8			(0.9	)		0.9			187.8
Balance as of March 31, 2019	$	126.2		$	(125.6	)	$	(14.8	)	$	(14.2	)

The following table presents reclassifications out of accumulated other comprehensive income (loss) attributable to Alleghany stockholders during the three months ended March 31, 2020 and 2019:

Accumulated Other		Three Months Ended March 31,
Comprehensive Income Component	Line in Consolidated Statement of Earnings	2020			2019
		($ in millions)
Unrealized appreciation of investments:	Net realized capital gains⁽¹⁾	$	(45.1	)	$	(4.4	)
	Credit losses for available for sale securities		31.4			10.0
	Income taxes		2.8			(1.2	)
Total reclassifications:	Net (earnings) losses	$	(10.9	)	$	4.4

(1)

For the three months ended March 31, 2020, excludes a $7.1 million realized loss as a result of an early redemption of debt (see Note 11(a) of this Form 10-Q for further information), a $30.0 million impairment charge from a write-down of certain SORC assets and a $5.0 million realized gain from a reduction of certain 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 15, 2020, Alleghany paid dividends to stockholders totaling $215.0 million.