Alleghany's Business Segments

We are a Delaware corporation which owns and manages certain operating subsidiaries and investments, anchored by a core position in property and casualty reinsurance and insurance. We were initially incorporated in 1929, were subsequently incorporated in 1984 under the laws of the State of Delaware and, in December 1986, we succeeded to the business of our parent company, Alleghany Corporation. Through our wholly-owned subsidiary AIHL and its subsidiaries, we are engaged in the property and casualty insurance business. AIHL’s insurance operations are principally conducted by its subsidiaries RSUI, CapSpecialty and PacificComp. CapSpecialty has been a subsidiary of AIHL since January 2002, RSUI has been a subsidiary of AIHL since July 2003 and PacificComp has been a subsidiary of AIHL since July 2007. AIHL Re, a captive reinsurance company which provides reinsurance to Alleghany’s insurance operating subsidiaries and affiliates, has been a wholly-owned subsidiary of Alleghany since its formation in May 2006. Our reinsurance operations commenced on March 6, 2012 when we consummated a merger with TransRe, and TransRe became one of our wholly-owned subsidiaries. Our public equity investments, including those held by TransRe’s and AIHL’s operating subsidiaries, are managed primarily through our wholly-owned subsidiary Roundwood.

Overview of Alleghany Corporations Segments, Products, and Services

Alleghany Corporation is a leading provider of diversified insurance and reinsurance services through its subsidiaries. The company operates primarily through two segments: Reinsurance Segment and Insurance Segment.



Reinsurance Segment

The Reinsurance Segment of Alleghany primarily consists of property and casualty reinsurance operations conducted by TransRe’s operating subsidiaries. These include:

- Transatlantic Reinsurance Company (TRC)
- TransRe London Ltd. (TRL)
- TransRe Zurich Ltd. (TRZ)

Geographic Presence

TransRe operates both domestically within the U.S. and internationally across various markets, including:

- North America: Licensed in all 50 states, the District of Columbia, Puerto Rico, and Guam.
- International: Operates in Bermuda, Canada, the U.K. Germany, Japan, Australia, Singapore, and more.

TransRe has multiple offices worldwide, making it a global player in the reinsurance market.

Product Lines

TransRe offers reinsurance capacity through two major product lines:

1. Property:
- This segment encompasses fire, allied lines, auto physical damage, and homeowners multiple peril lines, including property catastrophe risks.
- As of the last reporting period, property reinsurance accounted for approximately 32% of TransRes gross premiums written.

2. Casualty & Other:
- Key areas include liability insurance (director and officers liability, errors and omissions liability), medical malpractice, ocean marine, aviation, auto liability (including non-standard risks), accident and health, surety, and credit.
- This segment accounted for approximately 68% of TransRes gross premiums written.

Types of Reinsurance Contracts

TransRe provides both treaty and facultative reinsurance:

- Treaty Reinsurance: An automatic agreement to reinsure a specified class of risks.
- Facultative Reinsurance: A situation where individual risks are underwritten separately, offering flexibility for risks not covered by treaty agreements.

Within these categories, TransRe also provides pro rata and excess-of-loss coverage, adapting to the specific needs and risk profiles of ceding companies.



Insurance Segment

The Insurance Segment consists of property and casualty insurance operations mainly through AIHL and its subsidiaries:

- RSUI Indemnity Company
- CapSpecialty
- PacificComp

AIHL Re, a captive reinsurance company based in Vermont, provides reinsurance to these insurance subsidiaries.

Product Lines

The insurance segment can be further broken down into:

1. RSUI:
- Underwrites specialty insurance coverages in areas such as property, umbrella/excess liability, general liability, directors’ and officers’ liability, and professional liability.
- Operates both in admitted (regulated) and non-admitted (less regulated) markets, targeting hard-to-place risks.

2. CapSpecialty:
- Operates primarily in the admitted lines of insurance and offers surety products (commercial and contract).
- Conducts business through its subsidiaries, including Capitol Indemnity Corporation (CIC) and Capitol Specialty Insurance Corporation (CSIC).

3. PacificComp:
- Primarily focuses on workers compensation insurance, catering mainly to small to mid-sized businesses.

Surety Products

CapSpecialty’s CIC offers surety products which provide guarantees related to contract performance, typically used in construction and service industries.



Conclusion

Alleghany Corporation offers a robust portfolio of products and services within its Reinsurance and Insurance segments, effectively catering to a wide range of markets and customer needs. Through its various subsidiaries, the company continues to maintain a strong competitive position in the insurance and reinsurance landscape.