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Condensed Financial Information of Registrant
 12 Months Ended
Dec. 31, 2020
Condensed Financial Information Of Parent Company Only Disclosure [Abstract]  
Condensed Financial Information of Registrant

Schedule II – Condensed Financial Information of Registrant

Condensed Balance Sheets

ALLEGHANY CORPORATION

December 31, 2020 and 2019

 

 

 

2020

 

 

2019

 

 

 

($ in thousands)

 

Assets

 

 

 

 

 

 

 

 

Equity securities (cost: 2020 – $587,418; 2019 – $1,708)

 

$

571,314

 

 

$

4,042

 

Debt securities (amortized cost: 2020 – $47,397; 2019 – $179,747; allowance for credit losses: 2020 – $57)

 

 

48,753

 

 

 

182,490

 

Short-term investments

 

 

76,259

 

 

 

125,412

 

Other invested assets

 

 

91,873

 

 

 

81,728

 

Cash

 

 

17,243

 

 

 

684

 

Property and equipment at cost, net of accumulated depreciation and amortization

 

 

3,707

 

 

 

4,201

 

Other assets

 

 

60,089

 

 

 

57,415

 

Net deferred tax assets

 

 

21,060

 

 

 

30,118

 

Current taxes receivable

 

 

17,649

 

 

 

—

 

Investment in subsidiaries

 

 

9,361,261

 

 

 

9,638,153

 

Total assets

 

$

10,269,208

 

 

$

10,124,243

 

 

 

 

 

 

 

 

 

 

Liabilities, Redeemable Noncontrolling Interests and Stockholders’ Equity

 

 

 

 

 

 

 

 

Senior notes

 

$

1,190,192

 

 

$

994,241

 

Other liabilities

 

 

89,487

 

 

 

144,382

 

Current taxes payable

 

 

—

 

 

 

4,133

 

Total liabilities

 

 

1,279,679

 

 

 

1,142,756

 

 

 

 

 

 

 

 

 

 

Redeemable noncontrolling interest

 

 

233,809

 

 

 

204,753

 

 

 

 

 

 

 

 

 

 

Stockholders' equity attributable to Alleghany stockholders

 

 

8,755,720

 

 

 

8,776,734

 

Total liabilities, redeemable noncontrolling interest and stockholders’ equity

 

$

10,269,208

 

 

$

10,124,243

 

 

See accompanying Notes to Condensed Financial Statements


 

Condensed Statements of Earnings

ALLEGHANY CORPORATION

Year ended December 31,

 

 

 

2020

 

 

2019

 

 

2018

 

 

 

($ in thousands)

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

$

24,448

 

 

$

10,790

 

 

$

16,548

 

Change in the fair value of equity securities

 

 

(54,647

)

 

 

3,937

 

 

 

(44,780

)

Net realized capital gains

 

 

6,522

 

 

 

(13,497

)

 

 

(265

)

Change in allowance for credit losses on available for sale securities

 

 

(57

)

 

 

—

 

 

 

—

 

Noninsurance revenue

 

 

771

 

 

 

85

 

 

 

64

 

Total revenues

 

 

(22,963

)

 

 

1,315

 

 

 

(28,433

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Costs and Expenses

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

46,811

 

 

 

52,908

 

 

 

53,121

 

Corporate administration

 

 

48,849

 

 

 

70,692

 

 

 

17,565

 

Total costs and expenses

 

 

95,660

 

 

 

123,600

 

 

 

70,686

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Losses) before equity in earnings of consolidated subsidiaries and income taxes

 

 

(118,623

)

 

 

(122,285

)

 

 

(99,119

)

Equity in earnings of consolidated subsidiaries

 

 

276,240

 

 

 

1,245,921

 

 

 

138,711

 

Earnings before income taxes

 

 

157,617

 

 

 

1,123,636

 

 

 

39,592

 

Income taxes

 

 

30,734

 

 

 

233,435

 

 

 

(15,062

)

Net earnings

 

 

126,883

 

 

 

890,201

 

 

 

54,654

 

Net earnings attributable to noncontrolling interest

 

 

25,129

 

 

 

32,400

 

 

 

15,115

 

Net earnings attributable to Alleghany stockholders

 

$

101,754

 

 

$

857,801

 

 

$

39,539

 

 

See accompanying Notes to Condensed Financial Statements


 

Condensed Statements of Cash Flows

ALLEGHANY CORPORATION

Year ended December 31,

 

 

2020

 

 

2019

 

 

2018

 

 

 

($ in thousands)

 

Cash flows from operating activities

 

 

 

 

 

 

 

 

 

 

 

 

Net earnings

 

$

126,883

 

 

$

890,201

 

 

$

54,654

 

Adjustments to reconcile net earnings to net cash provided by (used in)

   operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

Equity in undistributed net (earnings) losses of consolidated subsidiaries

 

 

(226,590

)

 

 

(989,486

)

 

 

(130,050

)

Depreciation and amortization

 

 

4,064

 

 

 

2,249

 

 

 

1,750

 

Change in the fair value of equity securities

 

 

54,647

 

 

 

(3,937

)

 

 

44,780

 

Net realized capital (gains) losses

 

 

(6,522

)

 

 

13,497

 

 

 

265

 

Change in allowance for credit losses on available for sale securities

 

 

57

 

 

 

—

 

 

 

—

 

Increase (decrease) in other liabilities and taxes payable

 

 

(56,298

)

 

 

24,593

 

 

 

(84,803

)

Net adjustments

 

 

(230,642

)

 

 

(953,084

)

 

 

(168,058

)

Net cash (used in) provided by operating activities

 

 

(103,759

)

 

 

(62,883

)

 

 

(113,404

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash flows from investing activities

 

 

 

 

 

 

 

 

 

 

 

 

Purchases of equity securities

 

 

(763,986

)

 

 

—

 

 

 

(31,125

)

Purchases of debt securities

 

 

(497,058

)

 

 

(194,706

)

 

 

(3,418

)

Sales of debt securities

 

 

606,110

 

 

 

1,186

 

 

 

29,189

 

Maturities and redemptions of debt securities

 

 

32,383

 

 

 

13,344

 

 

 

53

 

Sales of equity securities

 

 

142,065

 

 

 

64,016

 

 

 

360,579

 

Net (purchase) sale of short-term investments

 

 

49,154

 

 

 

162,161

 

 

 

(195,983

)

Purchases of property and equipment

 

 

(9

)

 

 

(124

)

 

 

—

 

Other, net

 

 

(8,731

)

 

 

(33,245

)

 

 

(4,926

)

Net cash (used in) provided by investing activities

 

 

(440,072

)

 

 

12,632

 

 

 

154,369

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash flows from financing activities

 

 

 

 

 

 

 

 

 

 

 

 

Repayment of senior notes

 

 

(307,095

)

 

 

—

 

 

 

—

 

Treasury stock acquisitions

 

 

(194,762

)

 

 

(144,422

)

 

 

(491,633

)

Proceeds from issuance of senior notes

 

 

499,335

 

 

 

—

 

 

 

—

 

Debt issue costs paid

 

 

(4,550

)

 

 

—

 

 

 

—

 

Cash dividends paid

 

 

(215,013

)

 

 

—

 

 

 

(153,967

)

Capital contributions to consolidated subsidiaries

 

 

(87,323

)

 

 

(15,267

)

 

 

(175,653

)

Distributions from consolidated subsidiaries

 

 

865,000

 

 

 

215,000

 

 

 

751,471

 

Other, net

 

 

4,798

 

 

 

(4,707

)

 

 

7,868

 

Net cash provided by (used in) financing activities

 

 

560,390

 

 

 

50,604

 

 

 

(61,914

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Net increase (decrease) in cash

 

 

16,559

 

 

 

353

 

 

 

(20,949

)

Cash at beginning of period

 

 

684

 

 

 

331

 

 

 

21,280

 

Cash at end of period

 

$

17,243

 

 

$

684

 

 

$

331

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Supplemental disclosures of cash flow information

 

 

 

 

 

 

 

 

 

 

 

 

Cash paid during the period for:

 

 

 

 

 

 

 

 

 

 

 

 

Interest paid

 

$

49,036

 

 

$

51,375

 

 

$

51,375

 

Income taxes paid (refunds received)

 

 

17,255

 

 

 

(4,189

)

 

 

(8,338

)

 

See accompanying Notes to Condensed Financial Statements


 

Notes to Condensed Financial Statements

ALLEGHANY CORPORATION

1.    Investment in Consolidated Subsidiaries. Reference is made to Note 1 to the Consolidated Financial Statements set forth in Part II, Item 8, “Financial Statements and Supplementary Data” of this Form 10-K.

2.    Adoption of New Accounting Guidance. Reference is made to Note 1 to the Consolidated Financial Statements set forth in Part II, Item 8, “Financial Statements and Supplementary Data” of this Form 10-K.

3.    Income Taxes. Reference is made to Note 9 to the Consolidated Financial Statements set forth in Part II, Item 8, “Financial Statements and Supplementary Data” of this Form 10-K.

4.    Commitments and Contingencies. Reference is made to Note 12 to the Consolidated Financial Statements set forth in Part II, Item 8, “Financial Statements and Supplementary Data” of this Form 10-K.

5.    Stockholders’ Equity. Reference is made to Note 10 to the Consolidated Financial Statements set forth in Part II, Item 8, “Financial Statements and Supplementary Data” of this Form 10-K with respect to stockholders’ equity and surplus available for dividend payments to Alleghany from its subsidiaries.

6.    Senior Notes. Reference is made to Note 8 to the Consolidated Financial Statements set forth in Part II, Item 8, “Financial Statements and Supplementary Data” of this Form 10-K.

7.    Credit Agreement. Reference is made to Note 7 to the Consolidated Financial Statements set forth in Part II, Item 8, “Financial Statements and Supplementary Data” of this Form 10-K.

8.    Long-Term Compensation Plans. Reference is made to Note 14 to the Consolidated Financial Statements set forth in Part II, Item 8, “Financial Statements and Supplementary Data” of this Form 10-K.

9.    Employee Retirement Benefit Plans. Reference is made to Note 15 to the Consolidated Financial Statements set forth in Part II, Item 8, “Financial Statements and Supplementary Data” of this Form 10-K.