EXHIBIT 99.1

ALLEGHANY CORPORATION

1411 Broadway, 34^th Floor

New York, NY 10018

ALLEGHANY CORPORATION REPORTS 2020 FIRST QUARTER RESULTS

NEW YORK, NY, May 5, 2020 – Alleghany Corporation (NYSE-Y) announced its financial results for the first quarter of 2020.  Highlights are below.

Weston Hicks, President and chief executive officer, commented, “In these extraordinary times, we are grateful for healthcare and other critical workers on the front lines of the global COVID-19 pandemic and our thoughts are with those most directly affected. I am proud of how employees across the Alleghany family of companies have responded to the crisis as they have demonstrated continued dedication to supporting customers, their communities and front-line efforts.

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“Although our first quarter results were impacted by the pandemic crisis and the related significant financial market dislocation, our operating results were positive.  We continue to see strong premium growth and underwriting results at RSUI and improving underlying trends at TransRe, aside from the pandemic-related losses recognized in the quarter. The pandemic losses at TransRe were for event cancellation and other specific covers providing affirmative pandemic coverage, as well as increased loss provisions on certain lines including accident and health and trade credit in the quarter. Although most of RSUI’s contracts do not provide coverage for pandemic losses, and in fact specifically exclude losses related to pathogens, in cases where coverage is provided, we will respond as quickly as possible and pay legitimate claims.

“Alleghany Capital’s first quarter results were negatively impacted by a tough comparison with the 2019 first quarter, when Jazwares benefited from the initial launch of the Fortnite license during what is a typically slow season for toys, certain customer-driven project delays at W&W|AFCO Steel, as well as the impact of government mandated closures and pandemic-related safety measures undertaken across Alleghany Capital companies. Despite current pandemic-related challenges and project delays that will continue in 2020, most Alleghany Capital subsidiaries remain very well positioned with strong backlogs and long-standing customer relationships that will enable them to emerge from this crisis in a position of strength.

“The length and full economic implications of this crisis continue to unfold and although 2020 will undoubtedly be a challenging year, Alleghany enters this period with a very strong balance sheet and ample liquidity to navigate this situation. Our investment portfolio is defensively positioned with an average rating of AA- and significantly lower allocation to risk assets than in past periods. Our companies have exceptional management teams and strong franchises in their respective markets, which will help them through this difficult period.  Alleghany remains committed to supporting employees, customers and its communities while delivering long-term value to stockholders.”

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The following table summarizes results for the three months ended March 31, 2020 and 2019:

SEGMENT RESULTS

The following table summarizes the reinsurance and insurance segment results for the three months ended March 31, 2020 and 2019:

Reinsurance

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TransRe’s net premiums written increased 9.3% in the first quarter of 2020 from the first quarter of 2019, primarily reflecting an increase in various domestic casualty lines of business written, including general liability, professional liability and umbrella lines of business, partially offset by a slight decrease in property lines of business written globally and the impact of changes in foreign currency exchange rates.

TransRe’s combined ratio for the first quarter of 2020 was 107.0%, compared with 96.1% for the first quarter of 2019.  The higher combined ratio in the first quarter of 2020 primarily reflects significant catastrophe losses, primarily related to the Pandemic, which added 13.5 points to TransRe’s combined ratio.

TransRe’s results included approximately $153 million of Pandemic-related losses related to event postponement and cancellation coverage for conferences, sporting events and other property coverages and, to a lesser extent, increased loss provisions for accident and health and trade credit.  Of the total Pandemic-related losses, approximately half related to specific event cancellation treaties.  Total exposed limits on this portfolio are approximately $180 million for 2020 and $40 million for 2021.  Ultimate losses will depend on the timing of crowd restrictions being lifted, whether events can be rescheduled and how far in advance an event is postponed or cancelled. 

Insurance

Insurance segment net premiums written increased 16.0% in the first quarter of 2020 from the first quarter of 2019, primarily reflecting growth at RSUI.  

RSUI’s net premiums written increased 21.4% in the first quarter of 2020 from the first quarter of 2019, reflecting growth in most lines of business due to increases in business opportunities, higher rates and improved general market conditions, particularly in the property lines of business and, to a lesser extent, the umbrella/excess and directors’ and officers’ liability lines of business.

RSUI’s combined ratio for the first quarter of 2020 was 75.8%, compared with 76.8% for the first quarter of 2019.  The lower combined ratio in the first quarter of 2020 primarily reflects the impact of higher net premiums earned, partially offset by higher catastrophe losses and less favorable prior accident year reserve development.

CapSpecialty’s net premiums written increased by 2.0% in the first quarter of 2020 from the first quarter of 2019, primarily reflecting increases in business opportunities and CapSpecialty’s expanded product offerings, including the impact of CapSpecialty’s purchase in September 2019 of renewal rights to a small lawyer’s professional liability block of business, partially offset by a curtailment of certain unprofitable broker relationships.

CapSpecialty’s combined ratio for the first quarter of 2020 was 101.3%, compared with 99.9% for the first quarter of 2019.  The higher combined ratio in the first quarter of 2020 primarily reflects higher current accident year loss ratios, partially offset by less unfavorable prior accident year loss reserve development.

Insurance segment results do not include significant provisions for any losses or expenses resulting from the Pandemic. Most insurance segment contracts do not provide coverage for the Pandemic, and in fact specifically exclude losses related to pathogens. At this time, few claims for possible covered losses have been received, and we will continue to evaluate instances where coverage might exist and respond accordingly.

Alleghany Capital

The following table summarizes earnings (losses) before income taxes and adjusted earnings (losses) before income taxes for the Alleghany Capital segment for the three months ended March 31, 2020 and 2019:

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The decrease in earnings before income taxes in the first quarter of 2020 from the first quarter of 2019 primarily reflects lower sales and margins at Jazwares due to the comparison with the initial launch of Fortnite, which positively impacted sales in the first quarter of 2019. Jazwares was also impacted by Pandemic-related temporary disruptions to supplier shipping schedules.

The decrease in earnings before income taxes is also due to lower sales at W&W|AFCO Steel, reflecting customer-driven delays of certain large construction projects, as well as the impact of safety measures taken in response to the Pandemic and various government shelter-in-place orders across all operations. The declines were partially offset by lower incentive compensation accruals at Alleghany Capital’s corporate operations.

On April 1, 2020, Alleghany Capital increased its ownership in Wilbert from 45% to approximately 100% and Jazwares acquired a majority position in Kelly Toys Holdings, LLC, a leading producer of plush toys.

INVESTMENT PERFORMANCE

Alleghany reported net investment income for the first quarter of 2020 of $112 million, a decrease of 8.9% from the first quarter of 2019. The decrease in net investment income in the first quarter of 2020 primarily reflects lower partnership income due to the impact of the Pandemic on lower-quality debt securities held by certain of our investment partnerships.  

Financial statement total return³ on investments was (4.4%) for the first quarter of 2020, compared with 4.2% for the first quarter of 2019, primarily reflecting a significant decrease in the fair value of the equity and debt securities portfolios, compared with increases in the first quarter of 2019.

Alleghany recorded a $30 million impairment at Stranded Oil Resources Corporation (“SORC”) in the first quarter of 2020, based on lower oil prices and futures curve as of March 31, 2020. The carrying value of SORC was $61 million as of March 31, 2020.

OTHER FINANCIAL INFORMATION

As of March 31, 2020, Alleghany had 14,309,682 shares of its common stock outstanding, compared with 14,364,628 shares of its common stock outstanding as of December 31, 2019.

During the first quarter of 2020, Alleghany repurchased an aggregate of 62,540 shares of its common stock in the open market for $44 million, at an average price per share of $707.84.  As of March 31, 2020, Alleghany had $583 million remaining under its share repurchase authorization. In light of the current economic environment and related uncertainty, Alleghany has temporarily suspended common stock repurchases.

Additional Information

Concurrent with the issuance of today’s earnings press release, Alleghany has posted a financial supplement to its website, www.alleghany.com, containing additional schedules that provide further detail pertaining to Alleghany’s financial results.

Additional information regarding Alleghany’s 2020 first quarter financial results, including management’s discussion and analysis of Alleghany’s financial condition and results of operations, is contained in Alleghany’s Quarterly Report on Form 10-Q for the period ended March 31, 2020 (the “Form 10-Q”), to be filed with the U.S. Securities and Exchange Commission (the “SEC”) on or about the date hereof.  The Form 10-Q and the financial supplement will be available on Alleghany’s website at www.alleghany.com. The Form 10-Q will also be available on the SEC’s website at

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www.sec.gov.  Readers are urged to review the Form 10-Q for a more complete discussion of Alleghany’s financial performance.

About Alleghany Corporation

Alleghany Corporation (NYSE-Y) creates value by owning and supporting its operating subsidiaries and managing investments, anchored by a core position in property and casualty reinsurance and insurance. Alleghany’s property and casualty subsidiaries include: Transatlantic Holdings, Inc. (referred to herein as “TransRe”), a leading global reinsurer; RSUI Group, Inc. (referred to herein as “RSUI”), which underwrites wholesale specialty insurance coverages including property, casualty, professional liability and directors' and officers' liability; and CapSpecialty, Inc. (referred to herein as “CapSpecialty”), an underwriter of commercial property, casualty and surety insurance coverages.

Alleghany’s subsidiary Alleghany Capital Corporation (referred to herein as “Alleghany Capital”) owns and manages a diverse portfolio of middle market businesses. Alleghany Capital's investments are categorized as either industrial businesses or non-industrial businesses. The industrial businesses include: (i) Precision Cutting Technologies, Inc., a holding company with four operating businesses: (a) Bourn & Koch, Inc., a provider of precision automated machine tool solutions; (b) Diamond Technology Innovations, Inc., a manufacturer of waterjet orifices and nozzles and a provider of related services; (c) Coastal Industrial Distributors, LLC, a provider of high-performance solid carbide end mills;  and (d) as of March 2020, Supermill LLC, a manufacturer of high-performance carbide end mills;  (ii) R.C. Tway Company, LLC (dba “Kentucky Trailer”), a manufacturer of custom trailers and truck bodies for the moving and storage industry and other markets; (iii) WWSC Holdings, LLC, a structural steel fabricator and erector (referred to herein as “W&W|AFCO Steel”); and (iv) Wilbert Funeral Services, Inc., a provider of products and services for the funeral and cemetery industries and precast concrete markets.  The non-industrial businesses include: (i) IPS-Integrated Project Services, LLC, a design, engineering, procurement, construction management and validation service provider focused on the global pharmaceutical and biotechnology industries (referred to herein as “IPS”); (ii) Jazwares, LLC, a global toy, entertainment and musical instrument company (referred to herein as “Jazwares”); and (iii) CHECO Holdings, LLC, a hotel management and development company (referred to herein as “Concord”). For additional information about Alleghany Capital Corporation, please visit www.alleghanycc.com.

Non-GAAP Financial Measures

Throughout this press release, Alleghany’s results of operations have been presented in the way that Alleghany believes will be the most meaningful and useful to investors, analysts, rating agencies and others who use financial information in evaluating the performance of Alleghany. This presentation includes the use of

underwriting profit, adjusted earnings, adjusted earnings per diluted share, adjusted earnings before income taxes and book value per share excluding accumulated other comprehensive income (“AOCI”), which are “non-GAAP financial measures.”  The presentation of these financial measures is not intended to be considered in isolation or as a substitute for, or superior to, financial information prepared and presented in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”).  Also, note that these measures may be different from non-GAAP financial measures used by other companies, limiting their usefulness for comparison purposes.  A discussion of Alleghany’s calculation and use of these financial measures is provided below.

Underwriting profit represents net premiums earned less net loss and loss adjustment expenses and commissions, brokerage and other underwriting expenses, all as determined in accordance with U.S. GAAP and does not include net investment income, change in the fair value of equity securities, net realized capital gains, credit losses for available for sale securities, non-insurance revenue, other operating expenses, corporate administration, amortization of intangible assets and interest expense. Alleghany consistently uses underwriting profit as a supplement to earnings before income taxes, the most comparable U.S. GAAP financial measure, to evaluate the performance of its reinsurance and insurance segments and believes that underwriting profit provides useful additional information to investors because it highlights net earnings attributable to a segment’s underwriting performance.  Earnings before income taxes may show a profit despite an underlying underwriting loss; and when underwriting losses persist over extended periods, a reinsurance or an insurance company’s ability to continue as an ongoing concern may be at risk.

A reconciliation of underwriting profit to earnings before income taxes is presented below.

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Adjusted earnings and adjusted earnings per diluted share represent net earnings attributable to Alleghany stockholders and earnings per diluted share, respectively, excluding (on an after-tax basis) change in the fair value of equity securities, net realized capital gains, credit losses for available for sale securities and amortization of intangible assets, all as determined in accordance with U.S. GAAP.  Alleghany uses adjusted earnings and adjusted earnings per diluted share as supplements to net earnings attributable to Alleghany stockholders and earnings per diluted share, respectively, the most comparable U.S. GAAP financial measures, to provide useful additional information to investors by highlighting earnings and earnings per diluted share attributable to its performance exclusive of changes in the fair value of equity securities, realized capital gains or losses, credit losses for available for sale securities and amortization of intangible assets.  

Reconciliations of adjusted earnings and adjusted earnings per diluted share to net earnings attributable to Alleghany stockholders and earnings per diluted share, respectively, are presented below.

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Adjusted earnings before income taxes is a non-GAAP financial measure for our non-insurance operating subsidiaries and investments in the Alleghany Capital segment. Adjusted earnings before income taxes represents noninsurance revenue and net investment income less other operating expenses and interest expense, and does not include: (i) amortization of intangible assets; (ii) change in the fair value of equity securities; (iii) net realized capital gains; (iv) credit losses for available for sale securities; and (v) income taxes. Because adjusted earnings before income taxes excludes amortization of intangible assets, change in the fair value of equity securities, net realized capital gains, credit losses for available for sale securities and income taxes, it provides an indication of economic performance that is not affected by levels of effective tax rates or levels of amortization resulting from acquisition accounting. Alleghany uses adjusted earnings before income taxes as a supplement to earnings before income taxes, the most comparable GAAP financial measure, to evaluate the performance of certain of its non-insurance operating subsidiaries and investments. A reconciliation of adjusted earnings before income taxes to earnings before income taxes is presented above in “Segment Results-Alleghany Capital.”

Book value per share excluding AOCI is calculated by dividing: (i) stockholders' equity attributable to Alleghany stockholders less AOCI, all as determined in accordance with GAAP, by (ii) shares outstanding.  Alleghany uses book value per share excluding AOCI as a supplement to book value per share, the most comparable GAAP financial measure, in order to better disclose its per share performance by excluding the effects of AOCI, which includes changes in interest rates and credit spreads on its debt securities portfolio, among others.  A reconciliation of book value per share to book value per share excluding AOCI is presented below.

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Forward-looking Statements

This release contains disclosures, which may be deemed “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of words such as “may,” “will,” “expect,” “project,” “estimate,” “anticipate,” “plan,” “believe,” “potential,” “should” or the negative versions of those words or other comparable words.  Forward-looking statements do not relate solely to historical or current facts; rather, they are based on management’s expectations as well as certain assumptions and estimates made by, and information available to, management at the time. These statements are not guarantees of future performance. These forward-looking statements are based upon Alleghany’s current expectations and are subject to a number of uncertainties and risks that could significantly affect current plans, anticipated actions and Alleghany’s future financial condition and results. Factors that could cause these forward-looking statements to differ, possibly materially, from that currently contemplated include:

•   the effects of outbreaks of pandemics or contagious diseases, including the length and severity of the recent worldwide coronavirus pandemic, known as COVID-19, including its impact on our business;

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Additional risks and uncertainties include general economic and political conditions, including the effects of a prolonged U.S. or global economic downturn or recession; changes in costs; variations in political, economic or other factors; risks relating to conducting operations in a competitive environment; effects of acquisition and disposition activities, inflation rates, or recessionary or expansive trends; changes in interest rates; extended labor disruptions, civil unrest, or other external factors over which we have no control; changes in Alleghany’s plans, strategies, objectives, expectations, or intentions, which may happen at any time at its discretion; and other factors discussed in Alleghany’s 2019 Form 10-K and the Form 10-Q. All forward-looking statements speak only as of the date they are made and are based on information available at that time. Alleghany does not undertake any obligation to update or revise any forward-looking statements to reflect subsequent circumstances or events.

For more information, please contact:

Dale James
Alleghany Corporation
212-508-8116

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ALLEGHANY CORPORATION AND SUBSIDIARIES

Consolidated Balance Sheets

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ALLEGHANY CORPORATION AND SUBSIDIARIES

Consolidated Statements of Earnings and Comprehensive Income

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