Alleghany 2021 Full Year Performance Highlights
Opportunities and Challenges
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Opportunities
Re/insurance subsidiaries well-positioned for
profitable growth
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Reinsurance market continues to improve
Opportunities continue to be strong,
especially in casualty and professional
liability lines
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3
70% of TransRe's business is proportional,
which will benefit from primary rate
increases with a lag
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3
E&S market opportunity remains significant;
RSUI and CapSpecialty continuing to
capitalize on opportunity
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Continuing rate increases and robust new
business; tempered by signs of increasing
competition
Strong backlogs and order books at Alleghany
Capital; improved platform and bolt-on
acquisition opportunities
Higher rates ease the recent downward
pressure on investment income
Challenges
Impact of potential inflation on asset values
Increasing loss costs / inflation in casualty
lines
Book value (mark-to-market declines in
values of bonds held) impact of higher rates
Geopolitical and economic uncertainty (e.g.
Russia-Ukraine conflict, tax reform)
Supply chain and labor market challenges at
Alleghany Capital
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