Alleghany 2021 Full Year Performance Highlights
Alleghany's Long-Term Book Value Growth
Return on Operations
(UW margin)x
NPE
SH Equity
Return on Investments
on
Equities
[(Requities) x (SH Equity)
Return on
Fixed income
)]
ACC equity
fixed income SH Equity
[(ACC RoE)
SH Equity
Interest expense
SH Equity
Other net expenses
SH Equity
Pre-tax gain
in book value
1-Effective tax rate
Book Value Growth
2021 Variables
Return on Operations:
NPE leverage of 77%
Alleghany Capital accounts for approximately
15% of total stockholders' equity; ROE before
taxes and after noncontrolling interest of
approximately 16%
Return on Investments:
-
Common equities as a percentage of
stockholders' equity of 40%; Other invested
assets of ~6% of stockholders' equity
Fixed income leverage of 203%; book yield
on fixed income portfolio of 2.2% at year-
end
Costs: Interest expense of 0.9% and other net
expenses of approximately 1.3% of stockholders'
equity
■ Taxes: Alleghany's effective tax rate in 2021 was
20%.
UW margin = Underwriting margin NPE = Net premiums earned SH Equity = Stockholders' equity attributable to Alleghany stockholders ACC ROE = Alleghany Capital Corporation's
RoE before taxes and after noncontrolling interest Equities = Common equities and other invested assets Fixed income = Debt securities, short-term investments, commercial mortgage
loans and cash
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