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GuruFocus Financial Strength Rank measures how strong a company’s financial situation is. It is based on these factors

1. The debt burden that the company has as measured by its Interest coverage (current year).
2. Debt to revenue ratio. The lower, the better
3. Altman Z-score.

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

Financial Strength : 5/10

vs
industry
vs
history
Cash to Debt 0.359
Y's Cash to Debt is ranked lower than
107% of the 30 Companies
in the Global Insurance - Reinsurance industry.

( Industry Median: 1.34 vs. Y: 0.359 )
Y' s 10-Year Cash to Debt Range
Min: 0.05   Max: No Debt
Current: 0.36

Equity to Asset 0.271
Y's Equity to Asset is ranked higher than
50% of the 30 Companies
in the Global Insurance - Reinsurance industry.

( Industry Median: 0.22 vs. Y: 0.271 )
Y' s 10-Year Equity to Asset Range
Min: 0.25   Max: 0.74
Current: 0.27

0.25
0.74
Interest Coverage 10.5
Y's Interest Coverage is ranked lower than
117% of the 30 Companies
in the Global Insurance - Reinsurance industry.

( Industry Median: 10000.00 vs. Y: 10.5 )
Y' s 10-Year Interest Coverage Range
Min: 11   Max: No Debt
Current: 10.5

F-Score: 4
Z-Score: 0.68
GuruFocus Profitability Rank ranks how profitable a company is and how likely the company’s business will stay that way. It is based on these factors:

1. Operating Margin
2. Trend of the Operating Margin (5-year average). The company with an uptrend profit margin has a higher rank.
••3. Consistency of the profitability
4. Piotroski F-Score
5. Predictability Rank•

The maximum rank is 10. A rank of 7 or higher means a higher profitability and may stay that way. A rank of 3 or lower indicates that the company has had trouble to make a profit.

Profitability Rank is not directly related to the Financial Strength Rank. But if a company is consistently profitable, its financial strength will be stronger.

Profitability & Growth : 8/10

vs
industry
vs
history
Operating margin (%) 15.10
Y's Operating margin (%) is ranked higher than
67% of the 30 Companies
in the Global Insurance - Reinsurance industry.

( Industry Median: 12.30 vs. Y: 15.10 )
Y' s 10-Year Operating margin (%) Range
Min: 1.3   Max: 59.3
Current: 15.1

1.3
59.3
Net-margin (%) 14.8
Y's Net-margin (%) is ranked higher than
73% of the 30 Companies
in the Global Insurance - Reinsurance industry.

( Industry Median: 9.80 vs. Y: 14.8 )
Y' s 10-Year Net-margin (%) Range
Min: 4.8   Max: 24.2
Current: 14.8

4.8
24.2
ROE (%) 11
Y's ROE (%) is ranked lower than
80% of the 30 Companies
in the Global Insurance - Reinsurance industry.

( Industry Median: 11.20 vs. Y: 11 )
Y' s 10-Year ROE (%) Range
Min: 2.8   Max: 16.1
Current: 11

2.8
16.1
ROA (%) 3.1
Y's ROA (%) is ranked higher than
57% of the 30 Companies
in the Global Insurance - Reinsurance industry.

( Industry Median: 2.40 vs. Y: 3.1 )
Y' s 10-Year ROA (%) Range
Min: 0.9   Max: 12
Current: 3.1

0.9
12
Revenue Growth (%) 25.4
Y's Revenue Growth (%) is ranked lower than
137% of the 30 Companies
in the Global Insurance - Reinsurance industry.

( Industry Median: 3.90 vs. Y: 25.4 )
Y' s 10-Year Revenue Growth (%) Range
Min: -18.1   Max: 25.4
Current: 25.4

-18.1
25.4
EBITDA Growth (%) 14.3
Y's EBITDA Growth (%) is ranked higher than
90% of the 30 Companies
in the Global Insurance - Reinsurance industry.

( Industry Median: 29.35 vs. Y: 14.3 )
Y' s 10-Year EBITDA Growth (%) Range
Min: -58.1   Max: 160.9
Current: 14.3

-58.1
160.9
EPS Growth (%) 12.4
Y's EPS Growth (%) is ranked higher than
73% of the 30 Companies
in the Global Insurance - Reinsurance industry.

( Industry Median: 11.90 vs. Y: 12.4 )
Y' s 10-Year EPS Growth (%) Range
Min: -14.7   Max: 25.9
Current: 12.4

-14.7
25.9
» Y's 10-Y Financials

Financials


Revenue & Net Income
Equity & Asset
Oprt. Cash Flow & Free Cash Flow

» Details

Guru Trades

Q2 2012

Y Guru Trades in Q2 2012

Steven Romick 282,000 sh (New)
Jeremy Grantham 760 sh (New)
Martin Whitman 39,898 sh (New)
Third Avenue Management 254,239 sh (+57.46%)
First Pacific Advisors 291,871 sh (+1.46%)
Diamond Hill Capital 64,967 sh (+0.3%)
Zeke Ashton 7,750 sh (unchged)
Tom Gayner 4,328 sh (unchged)
Michael Price 88,044 sh (unchged)
Whitney Tilson 5,500 sh (unchged)
Tom Russo 465 sh (unchged)
Jean-Marie Eveillard 119,452 sh (unchged)
Ruane Cunniff 14,254 sh (unchged)
Steven Cohen Sold Out
Paul Tudor Jones Sold Out
Mario Gabelli 3,895 sh (-2.55%)
Chris Davis 2,384,048 sh (-2.74%)
Chuck Royce 680,506 sh (-12.51%)
» More
Q3 2012

Y Guru Trades in Q3 2012

Steven Cohen 5,198 sh (New)
Joel Greenblatt 601 sh (New)
Third Avenue Management 292,148 sh (+14.91%)
Martin Whitman 68,099 sh (+70.68%)
Zeke Ashton 7,750 sh (unchged)
Tom Russo 465 sh (unchged)
Whitney Tilson 5,500 sh (unchged)
Ruane Cunniff 14,254 sh (unchged)
Michael Price 88,044 sh (unchged)
Steven Romick 282,000 sh (unchged)
Tom Gayner 4,328 sh (unchged)
Jeremy Grantham 760 sh (unchged)
First Pacific Advisors 291,871 sh (unchged)
Jean-Marie Eveillard 119,452 sh (unchged)
Diamond Hill Capital 64,095 sh (-1.34%)
Mario Gabelli 3,795 sh (-2.57%)
Chris Davis 2,277,747 sh (-4.46%)
Chuck Royce 645,516 sh (-5.14%)
» More
Q4 2012

Y Guru Trades in Q4 2012

Jim Simons 4,588 sh (New)
Jean-Marie Eveillard 168,702 sh (+41.23%)
Third Avenue Management 332,727 sh (+13.89%)
Joel Greenblatt 661 sh (+9.98%)
Diamond Hill Capital 65,671 sh (+2.46%)
First Pacific Advisors 296,671 sh (+1.64%)
Steven Romick 286,200 sh (+1.49%)
Chuck Royce 647,016 sh (+0.23%)
Martin Whitman 74,858 sh (+9.93%)
Tom Russo 465 sh (unchged)
Tom Gayner 4,328 sh (unchged)
Ruane Cunniff 14,254 sh (unchged)
Mario Gabelli 3,795 sh (unchged)
Michael Price 88,044 sh (unchged)
Chris Davis 2,054,010 sh (-9.82%)
Whitney Tilson 3,000 sh (-45.45%)
Zeke Ashton 4,000 sh (-48.39%)
Steven Cohen 2,116 sh (-59.29%)
» More
Q1 2013

Y Guru Trades in Q1 2013

Steven Cohen 3,253 sh (+53.73%)
Diamond Hill Capital 66,217 sh (+0.83%)
Jean-Marie Eveillard 169,302 sh (+0.36%)
Martin Whitman 75,858 sh (+1.34%)
Michael Price 88,044 sh (unchged)
Tom Gayner 4,328 sh (unchged)
Tom Russo 465 sh (unchged)
Steven Romick 286,200 sh (unchged)
Joel Greenblatt Sold Out
Jim Simons Sold Out
Ruane Cunniff Sold Out
First Pacific Advisors 295,723 sh (-0.32%)
Chris Davis 2,029,311 sh (-1.2%)
Mario Gabelli 3,695 sh (-2.64%)
Chuck Royce 598,016 sh (-7.57%)
Third Avenue Management 276,843 sh (-16.8%)
Zeke Ashton 3,000 sh (-25%)
Whitney Tilson 2,000 sh (-33.33%)
» More
» Details

Insider Trades

Latest Guru Trades with Y

GuruDate Trades Impact to Portfolio Price Range * (?) Current Price Change from Average Current Shares
Whitney Tilson 2013-03-31 Reduce -33.33%0.27%$335.42 - $395.92 $ 398.138%2000
Ruane Cunniff 2013-03-31 Sold Out 0.04%$335.42 - $395.92 $ 398.138%0
Joel Greenblatt 2013-03-31 Sold Out 0.01%$335.42 - $395.92 $ 398.138%0
Whitney Tilson 2012-12-31 Reduce -45.45%0.5%$325.56 - $355.46 $ 398.1317%3000
Third Avenue Management 2012-12-31 Add 13.89%0.29%$325.56 - $355.46 $ 398.1317%332727
Jean-Marie Eveillard 2012-12-31 Add 41.23%0.06%$325.56 - $355.46 $ 398.1317%168702
Third Avenue Management 2012-09-30 Add 14.91%0.3%$328.19 - $355.64 $ 398.1316%292148
Joel Greenblatt 2012-09-30 New Buy0.01%$328.19 - $355.64 $ 398.1316%601
Martin Whitman 2012-07-31 Add 70.68%0.39%$320.45 - $346.85 $ 398.1319%68099
Third Avenue Management 2012-06-30 Add 57.46%0.77%$320.45 - $343.17 $ 398.1320%254239
Martin Whitman 2012-04-30 New Buy0.53%$287 - $340.98 $ 398.1324%39898
Premium More recent guru trades are included for Premium Members only!!

Guru Investment Theses on Alleghany Corp DEL

Third Avenue Management Comments on Alleghany Corp - Jun 28, 2012

From Third Avenue Management's second-quarter letter:

We initiated a position in Alleghany Common (Y), which was purchased in TASCX and discussed in last quarter's TASCX shareholder letter. Curtis Jensen and I attended a lunch with a small group of investors and Alleghany's CEO, Weston Hicks, in April. Weston seems to be our type of CEO: he is non-promotional and focused on generating shareholder value by growing book value per share. The company has no dedicated investor relations person and does not do quarterly earnings calls, but instead provides comprehensive financial disclosures aimed at enabling long-term investors, as opposed to short-term speculators, to make informed investment decisions. Weston's presentation to investors consisted of a one page Excel spreadsheet showing the company's performance since 2002, when he joined the company. Over this period, the company's average combined ratio was 90% (i.e., a 10% underwriting profit margin), and book value per share increased at a 9% compounded annual growth rate ("CAGR"). This growth was particularly impressive given the difficult underwriting environment over the period with competitive pricing and an elevated level of insured losses.

Future book value growth should be partially driven by the company's 2012 purchase of Transatlantic, a leading global reinsurer. This transaction appears to have been well timed, as it was completed at a significant discount to tangible book value and reinsurance rates are improving in 2012. Alleghany also recently announced a small acquisition of Bourn & Koch, Inc., an Illinois-based manufacturer of precision machine tools. This company will join several other noninsurance investments in Alleghany's portfolio and is representative of management's opportunistic approach and willingness to look outside the insurance industry to enhance shareholder value. Shares of Alleghany Common were purchased at a discount to tangible book value.

Check out Martin Whitman latest stock trades

Top Ranked Articles about Alleghany Corp DEL

Third Avenue Value Fund Buys Devon Energy, Comeric, Applied Materials, Alleghany, White Mountains Insurance Martin Whitman - Third Avenue Value Fund Buys Devon Energy, Comeric, Applied Materials, Alleghany, White Mountains Insurance
Third Avenue Value Fund was founded by legendary value investor Marty Whitman, who has recently retired. The fund is now managed by his successor Ian Lapey. Ian Lapey is also co-manager of the Third Avenue Value Fund UCITS for offshore investors. He joined Third Avenue in 2001. Ian Lapey has put his marks on the fund quickly. He initiated a few new positions that are mostly based in the U.S., while Marty Whitman put most of his assets in Hong Kong real estate companies. He initiated positions in oil and gas E&P, property & casualty insurance and high tech companies. In his shareholder letter, Ian Lapey detailed what he looks for in property & casualty insurance companies: Read more...
Third Avenue Management Comments on Alleghany Corp

Ratios

vs
industry
vs
history
P/E(ttm) 19.80
Y's P/E(ttm) is ranked lower than
84% of the 45 Companies
in the Global Insurance - Reinsurance industry.

( Industry Median: 10.10 vs. Y: 19.80 )
Y' s 10-Year P/E(ttm) Range
Min: 2.79   Max: 46.64
Current: 19.8

2.79
46.64
P/B 1.04
Y's P/B is ranked lower than
93% of the 30 Companies
in the Global Insurance - Reinsurance industry.

( Industry Median: 1.10 vs. Y: 1.04 )
Y' s 10-Year P/B Range
Min: 0.58   Max: 1.38
Current: 1.04

0.58
1.38
P/S 1.37
Y's P/S is ranked lower than
97% of the 30 Companies
in the Global Insurance - Reinsurance industry.

( Industry Median: 1.06 vs. Y: 1.37 )
Y' s 10-Year P/S Range
Min: 0.86   Max: 6.24
Current: 1.37

0.86
6.24
PFCF 10.00
Y's PFCF is ranked lower than
117% of the 30 Companies
in the Global Insurance - Reinsurance industry.

( Industry Median: 12.88 vs. Y: 10.00 )
Y' s 10-Year PFCF Range
Min: 3.17   Max: 72.92
Current: 10

3.17
72.92
EV-to-EBIT 23.57
Y's EV-to-EBIT is ranked lower than
110% of the 30 Companies
in the Global Insurance - Reinsurance industry.

( Industry Median: 8.60 vs. Y: 23.57 )
Y' s 10-Year EV-to-EBIT Range
Min: 2.1   Max: 247
Current: 23.57

2.1
247
PEG 0.47
Y's PEG is ranked lower than
100% of the Companies
in the Global Insurance - Reinsurance industry.

( Industry Median: vs. Y: 0.47 )
Y' s 10-Year PEG Range
Min: 0.11   Max: 24.72
Current: 0.47

0.11
24.72
Shiller P/E 13.14
Y's Shiller P/E is ranked lower than
127% of the 30 Companies
in the Global Insurance - Reinsurance industry.

( Industry Median: 8.95 vs. Y: 13.14 )
Y' s 10-Year Shiller P/E Range
Min: 9.54   Max: 37.68
Current: 13.14

9.54
37.68

Valuation & Return

vs
industry
vs
history
Price/Tangible Book 1
Y's Price/Tangible Book is ranked lower than
60% of the 30 Companies
in the Global Insurance - Reinsurance industry.

( Industry Median: 0.85 vs. Y: 1 )
Y' s 10-Year Price/Tangible Book Range
Min: 0.8   Max: 1.4
Current: 1

0.8
1.4
Price/DCF (Projected) 0.9
Y's Price/DCF (Projected) is ranked higher than
83% of the 30 Companies
in the Global Insurance - Reinsurance industry.

( Industry Median: 0.50 vs. Y: 0.9 )
Y' s 10-Year Price/DCF (Projected) Range
Min: 0.4   Max: 0.7
Current: 0.9

0.4
0.7
Price/Median PS Value 0.6
Y's Price/Median PS Value is ranked lower than
83% of the 30 Companies
in the Global Insurance - Reinsurance industry.

( Industry Median: 0.90 vs. Y: 0.6 )
Y' s 10-Year Price/Median PS Value Range
Min: 0.5   Max: 1.3
Current: 0.6

0.5
1.3
Price/Peter Lynch Fair Value 0.3
Y's Price/Peter Lynch Fair Value is ranked lower than
188% of the 16 Companies
in the Global Insurance - Reinsurance industry.

( Industry Median: 0.85 vs. Y: 0.3 )
Y' s 10-Year Price/Peter Lynch Fair Value Range
Min: 0.2   Max: 4.1
Current: 0.3

0.2
4.1
Price/Graham Number 0.6
Y's Price/Graham Number is ranked higher than
60% of the 30 Companies
in the Global Insurance - Reinsurance industry.

( Industry Median: 0.50 vs. Y: 0.6 )
Y' s 10-Year Price/Graham Number Range
Min: 0.4   Max: 1.7
Current: 0.6

0.4
1.7
Earnings Yield (Greenblatt) 4.20
Y's Earnings Yield (Greenblatt) is ranked higher than
77% of the 30 Companies
in the Global Insurance - Reinsurance industry.

( Industry Median: 11.30 vs. Y: 4.20 )
Y' s 10-Year Earnings Yield (Greenblatt) Range
Min: 0.4   Max: 47.7
Current: 4.2

0.4
47.7
Forward Rate of Return (Yacktman) 62.92
Y's Forward Rate of Return (Yacktman) is ranked higher than
73% of the 30 Companies
in the Global Insurance - Reinsurance industry.

( Industry Median: 11.88 vs. Y: 62.92 )
Y' s 10-Year Forward Rate of Return (Yacktman) Range
Min: 1.7   Max: 64.1
Current: 62.92

1.7
64.1

Business Description

Alleghany Corp DEL was incorporated in 1984 under the laws of the State of Delaware. In December 1986, the Company succeeded to the business of its parent company, Alleghany Corporation, a Maryland corporation incorporated in 1929, upon its liquidation. Alleghany is engaged, through Alleghany Insurance Holdings LLC or 'AIHL' and its subsidiaries RSUI, CATA and EDC, in the property and casualty and surety insurance business. The Company owns an approximately 38 percent ownership stake in ORX Exploration, Inc., or 'ORX,' a regional oil and gas exploration and production company, and an approximately 33 percent stake in Homesite Group Incorporated, or 'Homesite,' a national, full-service, mono-line provider of homeowners insurance. AIHL is Alleghany's holding company for its property and casualty and surety insurance operations. Property and casualty operations are conducted through RSUI, headquartered in Atlanta, Georgia, CATA, headquartered in Middleton, Wisconsin and EDC, headquartered in Agoura Hills, California. Surety operations are conducted through CATA. AIHL Re, its Vermont-domiciled captive reinsurance company, has, in the past, been available to provide reinsurance to its insurance operating units and affiliates. RSUI, which includes the operations of its operating subsidiaries RSUI Indemnity Company, or 'RIC,' Landmark American Insurance Company, or 'Landmark,' and Covington Specialty Insurance Company, or 'Covington,', underwrites specialty insurance coverages in the property, umbrella/excess, general liability, directors and officers liability and professional liability lines of business. RSUI writes business on an admitted basis mainly through RIC in the 50 states and the District of Columbia where RIC is licensed and subject to form and rate regulations. RSUI writes business on an approved, non-admitted basis primarily through Landmark, which, as a non-admitted company. RSUI's wholesale brokers are appointed on an individual basis based on management's appraisal of expertise and experience and only specific locations of a wholesale broker's operations might be appointed to distribute RSUI's products. CATA, mainly through its wholly-owned subsidiaries, Capitol Indemnity Corporation, or 'Capitol Indemnity,' and Capitol Specialty Insurance Corporation, or 'CSIC,' operates in 50 states and the District of Columbia, with a geographic concentration in the Midwestern and Plains states. Capitol Indemnity conducts its property and casualty insurance business on an admitted basis, with a geographic concentration in the Midwestern and Plains states. Capitol Indemnity also writes surety products such as commercial surety bonds and contract surety bonds on a national basis. PCC's main business is workers' compensation insurance, which is conducted on a direct basis through its wholly-owned subsidiary Pacific Compensation Insurance Company, or 'PCIC'. It is currently licensed in California and seven additional states. Workers' com
Company Website
SEC Reports
Industry: Insurance - Reinsurance
Compare:HVRRY, RE, SZCRF, RGA, VR
Traded in other countries:AGA.Germany

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