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7 Times Square Tower, 17th Floor
New York, NY 10036
ALLEGHANY CORPORATION REPORTS 2015 FOURTH QUARTER AND FULL YEAR RESULTS
NEW YORK, NY, February 23, 2016 Alleghany Corporation (NYSE-Y) announced today its financial results for the three months and year ended December 31, 2015. Highlights are listed below.
|●||Book value per common share1 was $486.02 as of December 31, 2015, an increase of 4.4% from book value per common share1 as of December 31, 2014.|
|●||Book value per common share1 increased 2.1% from book value per common share1 as of September 30, 2015.|
|●||Alleghany reported net earnings2 of $156.1 million, or $9.85 per diluted share for the 2015 fourth quarter, compared with $139.1 million, or $8.61 per diluted share for the 2014 fourth quarter.|
|●||Alleghany reported net earnings2 of $560.3 million, or $35.13 per diluted share for the full year 2015, compared with $679.2 million, or $41.40 per diluted share for the full year 2014.|
|●||Operating earnings per diluted share were $8.44 for the 2015 fourth quarter, compared with $7.81 for the 2014 fourth quarter.|
|●||Operating earnings per diluted share were $31.86 for the full year 2015, compared with $33.04 for the full year 2014.|
Weston Hicks, President and chief executive officer of Alleghany stated, Continued strong underwriting results at TransRe and RSUI led to solid operating performance for the fourth quarter and full year 2015. However, growth in book value was negatively impacted by a challenging investment environment. Alleghanys consolidated combined ratio of 88.0% in the fourth quarter compares favorably with an 88.9% combined ratio recorded in the fourth quarter of last year. Alleghanys reinsurance and insurance subsidiaries delivered a combined ratio of 89.0% for full year 2015 compared with an 88.8% for full year 2014. Current quarter and full year results are particularly noteworthy given the continued competitive environment. In addition the quarter was impacted by the recording of a previously announced $38 million of unfavorable prior accident year development at TransRe in connection with a commutation of all 1986 and prior liabilities with AIG. Largely offsetting this charge was a second commutation of a European medical malpractice treaty which resulted in an approximate $31 million of favorable prior accident year development. TransRe also demonstrated its reinsurance franchise value late in the fourth quarter by writing a large whole account quota share treaty for a major U.S. personal lines underwriter. This treaty drove TransRes 26% increase in net premiums written in the quarter. PacificComp and CapSpecialty also delivered solid growth in net premiums written as they executed on their business plans.
Mr. Hicks continued, Volatile markets dampened investment performance in the fourth quarter and full year 2015, somewhat offsetting the excellent underwriting performance. For the full year 2015, Alleghanys financial statement portfolio return was 1.0% compared with a financial statement portfolio return of 5.3% for full year 2014. We continue to position Alleghanys portfolio to balance risk of permanent loss of capital with earning an adequate current return.
During the quarter we repurchased 107,622 Alleghany shares at an average price of $476.60 per share. For the full year 2015, Alleghany spent $243.8 million, purchasing 520,466 shares at an average per share price of $468.45. At our current book value per share of $486.02, these purchases were immediately accretive to our stockholders and will continue to benefit stockholder return in the future.
1 Stockholders equity attributable to Alleghany stockholders divided by common stock outstanding.
2 Net earnings attributable to Alleghany stockholders.
The following information was filed by Alleghany Corp De (Y) on Tuesday, February 23, 2016 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.
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