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Alleghany Financial Strength

: 5 (As of Jun. 2022)
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Alleghany has the Financial Strength Rank of 5.

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). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.

Alleghany did not have earnings to cover the interest expense. Alleghany's debt to revenue ratio for the quarter that ended in Jun. 2022 was 0.22. Altman Z-Score does not apply to banks and insurance companies.


Alleghany Financial Strength Calculation

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

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

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

Alleghany's Interest Expense for the months ended in Jun. 2022 was $-29 Mil. Its Operating Income for the months ended in Jun. 2022 was $0 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2022 was $2,340 Mil.

Alleghany's Interest Coverage for the quarter that ended in Jun. 2022 is

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

Alleghany's Debt to Revenue Ratio for the quarter that ended in Jun. 2022 is

Debt to Revenue Ratio=Total Debt (Q: Jun. 2022 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(0 + 2339.598) / 10423.356
=0.22

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

Altman Z-Score does not apply to banks and insurance companies.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Alleghany  (NYSE:Y) Financial Strength Explanation

The maximum rank is 10. Companies with rank 7 or higher will be unlikely to fall into distressed situations. Companies with rank of 3 or less are likely in financial distress.

Alleghany has the Financial Strength Rank of 5.


Alleghany Financial Strength Related Terms

Thank you for viewing the detailed overview of Alleghany's Financial Strength provided by GuruFocus.com. Please click on the following links to see related term pages.


Alleghany Business Description

Alleghany logo
Traded in Other Exchanges
Address
1411 Broadway, 34th Floor, New York, NY, USA, 10018
Alleghany Corp is a property and casualty insurance company that owns and manages subsidiaries that operate reinsurance and insurance operations. The company also executes certain private capital investments. The company classifies its business into three reportable segments: reinsurance, insurance, and Alleghany Capital. These segments' underwriting activities are evaluated separately from investment and corporate activities. Reinsurance contracts are generally classified as a treaty or facultative contracts. Treaty reinsurance provides for the automatic reinsuring of all or a portion of a specified class of risk underwritten by the ceding company. Facultative reinsurance is geared toward individual risks.
Executives
Cheesman Chris H director C/O ALLEGHANY CORPORATION 1411 BROADWAY, 34TH FLOOR NEW YORK NY 10018
Shannon John F officer: SVP, chief investment officer C/O ALLEGHANY CORPORATION 1411 BROADWAY, 34TH FLOOR NEW YORK NY 10018
Jacobs Kerry J officer: SVP, Chief Financial Officer C/O ALLEGHANY CORPORATION 1411 BROADWAY, 34TH FLOOR NEW YORK NY 10018
Tyler Lauren M director C/O ALLEGHANY CORPORATION 1411 BROADWAY, 34TH FLOOR NEW YORK NY 10018
Sennott John Langton Jr officer: SVP C/O ALLEGHANY CORPORATION 1411 BROADWAY, 34TH FLOOR NEW YORK NY 10018
Bradley Stephen P director HARVARD BUSINESS SCHOOL MORGAN 237 BOSTON MA 02163
Foos John G director 1016 LORIEN DRIVE GWYNEDD VALLEY PA 19437
Chippendale Ian H director TRANSATLANTIC HOLDINGS, INC. 80 PINE ST NEW YORK NY 10005
Brandon Joseph Patrick officer: Executive Vice President C/O ALLEGHANY CORPORATION 1411 BROADWAY, 34TH FLOOR NEW YORK NY 10018
Transatlantic Holdings Inc 10 percent owner 80 PINE STREET NEW YORK NY 10005
Carr Andrew John officer: Vice President ALLEGHANY CORPORATION 7 TIMES SQUARE TOWER, 17TH FLOOR NEW YORK NY 10036
Dalrymple Christopher Kent officer: VP and General Counsel C/O DARWIN PROFESSIONAL UNDERWRITERS INC 9 FARM SPRINGS ROAD FARMINGTON CT 06032
Brenner Karen director 50 GAST 77 ST NEW YORK NY 10021
Martineau Phillip M director 414 EAST THIRD STREET PO BOX 1109 MUSCATINE IA 52761
Kirby Jefferson director ALLEGHANY CORPORATION 7 TIMES SQUARE TOWER, 17TH FLOOR NEW YORK NY 10036
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