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Executive Summary

Alleghany Corporation provides property and casualty reinsurance and insurance products in the United States and internationally.


Snowflake Analysis

Adequate balance sheet with weak fundamentals.


Similar Companies

Share Price & News

How has Alleghany's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: Y has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

3.3%

Y

2.5%

US Insurance

2.5%

US Market


1 Year Return

-28.1%

Y

-12.6%

US Insurance

16.3%

US Market

Return vs Industry: Y underperformed the US Insurance industry which returned -14.7% over the past year.

Return vs Market: Y underperformed the US Market which returned 15.8% over the past year.


Shareholder returns

YIndustryMarket
7 Day3.3%2.5%2.5%
30 Day14.5%9.7%5.6%
90 Day1.7%14.9%16.4%
1 Year-26.5%-28.1%-10.3%-12.6%18.8%16.3%
3 Year-5.5%-9.1%5.9%-2.0%45.1%35.7%
5 Year13.0%8.8%35.2%18.2%75.8%56.8%

Price Volatility Vs. Market

How volatile is Alleghany's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Alleghany undervalued compared to its fair value and its price relative to the market?

0.91x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate Y's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate Y's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: Y is unprofitable, so we can't compare its PE Ratio to the US Insurance industry average.

PE vs Market: Y is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate Y's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: Y's PB Ratio (0.9x) is in line with the US Insurance industry average.


Next Steps

Future Growth

How is Alleghany forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

-11.9%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if Y's forecast earnings growth is above the savings rate (2.2%).

Earnings vs Market: Insufficient data to determine if Y's earnings are forecast to grow faster than the US market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: Y's revenue is expected to decline over the next 3 years (-11.9% per year).

High Growth Revenue: Y's revenue is forecast to decline over the next 3 years (-11.9% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if Y's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Alleghany performed over the past 5 years?

-20.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: Y is currently unprofitable.

Growing Profit Margin: Y is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: Y is unprofitable, and losses have increased over the past 5 years at a rate of 20.7% per year.

Accelerating Growth: Unable to compare Y's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: Y is unprofitable, making it difficult to compare its past year earnings growth to the Insurance industry (-4%).


Return on Equity

High ROE: Y has a negative Return on Equity (-0.55%), as it is currently unprofitable.


Next Steps

Financial Health

How is Alleghany's financial position?


Financial Position Analysis

Short Term Liabilities: Y's short term assets ($5.5B) exceed its short term liabilities ($3.0B).

Long Term Liabilities: Y's short term assets ($5.5B) do not cover its long term liabilities ($16.0B).


Debt to Equity History and Analysis

Debt Level: Y's debt to equity ratio (20.5%) is considered satisfactory.

Reducing Debt: Y's debt to equity ratio has reduced from 23.5% to 20.5% over the past 5 years.

Debt Coverage: Y's debt is well covered by operating cash flow (47.8%).

Interest Coverage: Y is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet


Next Steps

Dividend

What is Alleghany current dividend yield, its reliability and sustainability?

2.78%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate Y's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate Y's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if Y's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if Y's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of Y's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

8.4yrs

Average management tenure


CEO

Weston Hicks (63 yo)

15.67yrs

Tenure

US$13,993,062

Compensation

Mr. Weston M. Hicks, CFA, has been the Chief Executive Officer and President at Alleghany Corporation since December 31, 2004. Mr. Hicks has been the Chief Executive Officer and President at Alleghany Insu ...


CEO Compensation Analysis

Compensation vs Market: Weston's total compensation ($USD13.99M) is above average for companies of similar size in the US market ($USD7.31M).

Compensation vs Earnings: Weston's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Weston Hicks
President15.67yrsUS$13.99m0.46%
$ 35.5m
Kerry Jacobs
Senior VP1.08yrsUS$1.39m0.0063%
$ 485.1k
Christopher Dalrymple
Senior VP11.08yrsUS$4.20m0.038%
$ 3.0m
Joseph Brandon
Executive Vice President8.42yrsUS$6.04m0.17%
$ 12.9m
John Sennott
President & CEO of CapSpecialty1.08yrsUS$8.97m0.044%
$ 3.4m
John Shannon
Senior VP & Chief Investment Officer0.58yrno data0.00052%
$ 40.2k
Jerry Borrelli
VP of Finance & Chief Accounting Officer14.08yrsUS$954.27kno data
Dale James
Vice President of Corporate Finance0.50yrno datano data
Stela Burghart
VP,Chief Compliance Officer6.33yrsno datano data
Peter Sismondo
VP, Controller & Assistant Secretary32.58yrsUS$674.63kno data
Michael Sapnar
CEO & President of Transatlantic Holdingsno datano datano data
Andrew Carr
VP & Tax Director13.42yrsUS$862.90kno data

8.4yrs

Average Tenure

54yo

Average Age

Experienced Management: Y's management team is seasoned and experienced (8.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Weston Hicks
President15.67yrsUS$13.99m0.46%
$ 35.5m
Lauren Tyler
Independent Director1.58yrsUS$293.88k0.012%
$ 922.2k
John Foos
Independent Director8.42yrsUS$261.77k0.024%
$ 1.9m
William Lavin
Independent Director28.33yrsUS$282.27k0.015%
$ 1.1m
Karen Brenner
Independent Director10.67yrsUS$271.77k0.028%
$ 2.2m
Phillip Martineau
Independent Director10.67yrsUS$256.77k0.022%
$ 1.7m
Jefferson Kirby
Independent Chairman of the Board10.08yrsUS$339.77k2.31%
$ 178.8m
Raymond L. Wong
Independent Director14.33yrsUS$277.27k0.059%
$ 4.5m
Ian Chippendale
Independent Director8.42yrsUS$256.77k0.015%
$ 1.2m

10.7yrs

Average Tenure

67yo

Average Age

Experienced Board: Y's board of directors are seasoned and experienced ( 10.7 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Alleghany Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Alleghany Corporation
  • Ticker: Y
  • Exchange: NYSE
  • Founded: 1929
  • Industry: Reinsurance
  • Sector: Insurance
  • Market Cap: US$7.724b
  • Shares outstanding: 14.31m
  • Website: https://www.alleghany.com

Number of Employees


Location

  • Alleghany Corporation
  • 1411 Broadway
  • 34th Floor
  • New York
  • New York
  • 10018
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
YNYSE (New York Stock Exchange)YesCommon StockUSUSDDec 1986
AGADB (Deutsche Boerse AG)YesCommon StockDEEURDec 1986

Biography

Alleghany Corporation provides property and casualty reinsurance and insurance products in the United States and internationally. The company operates in three segments: Reinsurance, Insurance, and Allegha ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/08 00:30
End of Day Share Price2020/08/07 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.