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1411 Broadway, 34th Floor
New York, NY 10018
ALLEGHANY CORPORATION REPORTS 2017 FOURTH QUARTER AND FULL-YEAR RESULTS
-Declares Special Dividend of $10 per Share-
NEW YORK, NY, February 21, 2018 Alleghany Corporation (NYSE-Y) announced today its financial results for the three months and year ended December 31, 2017. Highlights are below.
|●||Book value per common share1 was $553.20 as of December 31, 2017, an increase of 7.4% from book value per common share1 as of December 31, 2016, and an increase of 3.9% from book value per common share1 as of September 30, 2017.|
|●||Comprehensive income attributable to Alleghany stockholders was $586 million in 2017, reflecting strong investment performance and $509 million of after-tax catastrophe losses net of reinstatement premiums earned.|
|●||Earnings per diluted share were $5.85 and operating earnings per diluted share were $2.04 for 2017, compared with $29.59 of earnings per diluted share and $28.83 of operating earnings per diluted share for 2016.|
|●||Fourth quarter net earnings2 were $153.3 million in 2017, compared with $69.5 million in the 2016 fourth quarter. Fourth quarter earnings per diluted share in 2017 were $9.96 and operating earnings per diluted share were $9.89 both after $.22 per share of purchase accounting amortization compared with $4.45 of earnings per diluted share and $7.02 of operating earnings per diluted share for the 2016 fourth quarter both after $.19 per share of purchase accounting amortization.|
|●||After-tax catastrophe losses in the 2017 fourth quarter were $6.6 million compared with net after-tax catastrophe losses of $43.0 million in the 2016 fourth quarter.|
|●||The Board of Directors declared a special dividend of $10 per share for shareholders of record on March 5, 2018 and payable on March 15, 2018.|
Weston Hicks, President and chief executive officer of Alleghany, stated, The property and casualty industry experienced significant catastrophe losses in 2017, primarily arising from three major hurricanes making landfall in the United States, a Mexican earthquake and a series of wildfires in California in the fourth quarter. Alleghanys risk management protocols mitigated their impact and, coupled with strong investment performance, led to book value per share growth of 7.4% for the year and 3.9% in the quarter.
Mr. Hicks continued, Alleghany Capitals manufacturing and services subsidiaries had another quarter of improved operating performance, and the recently-completed acquisition of Hirschfeld Industries by W&W|AFCO Steel adds to the earnings power of our steel fabrication and erection business. Earnings before income taxes for the manufacturing and services businesses were $14.6 million in the fourth quarter of 2017, compared with $2.0 million in the fourth quarter of 2016, and were $45.2 million for full-year 2017 compared with $20.4 million for full-year 2016. Oil & Gas losses before income taxes were ($11.1) million for the fourth quarter of 2017 and ($30.9) million for full-year 2017, which include a $4.8 million loss realized from the sale of a SORC legacy oil field on December 29, 2017. With higher oil prices in 2018 and reduced investment in underperforming fields, we believe SORCs results will improve going forward.
|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 Wednesday, February 21, 2018 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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