Alleghany (Y) 8-K Alleghany Corporation Reports 2011 Second Quarter Results — Stockholders’ Equity Per Common Share Increases 4.8 Percent Since 2010 Year End

Exhibit 99.1

ALLEGHANY CORPORATION
7 Times Square Tower, 17^th Floor
New York NY 10036

Contact: C.K. Dalrymple
(212) 752-1356

FOR IMMEDIATE RELEASE

ALLEGHANY CORPORATION REPORTS 2011 SECOND QUARTER RESULTS — STOCKHOLDERS’ EQUITY PER COMMON SHARE INCREASES 4.8 PERCENT SINCE 2010 YEAR END

     NEW YORK, NY, August 4, 2011 — Stockholders’ equity per common share of Alleghany Corporation (NYSE-Y) at June 30, 2011 was $340.97, an increase of 4.8% from stockholders’ equity per common share of $325.31 at December 31, 2010 (all as adjusted for the stock dividend declared in February 2011), Weston M. Hicks, President and chief executive officer of Alleghany, announced today. Alleghany’s 2011 second quarter net earnings were $15.1 million, or $1.69 per common share (presented on a basic basis throughout), compared with net earnings of $66.3 million, or $7.26 per common share, in the second quarter of 2010. For the first six months of 2011, net earnings were $86.4 million, or $9.69 per common share, compared with net earnings of $124.4 million, or $13.58 per common share, in the first six months of 2010. Consolidated cash and invested assets were approximately $4.98 billion at June 30, 2011, compared with $4.88 billion at December 31, 2010.

     Commenting on Alleghany’s results, Mr. Hicks stated that “Alleghany produced disappointing results in the 2011 second quarter reflecting the impact of catastrophe losses from severe weather at our RSUI subsidiary, adverse reserve development at our Pacific Comp and CATA subsidiaries and negative returns on our equity portfolio. In the 2011 second quarter, Pacific Comp increased prior accident year reserves by $15.0 million and CATA increased prior accident year reserves by a net $2.7 million, with such increases partially offset by a $12.1 million release of prior accident year reserves at RSUI. Despite the impact of these items,

Alleghany still grew stockholders’ equity per common share by 4.8% in the first half of 2011. We continue to see a competitive property and casualty insurance market. However, renewal price changes in many lines are no longer negative, and we are cautiously optimistic about the prospect for improvements in catastrophe-exposed property insurance and workers’ compensation pricing.”

     “With respect to our investment performance, the total return on our investments on a consolidated basis, excluding other invested assets consisting primarily of our Homesite and ORX investments, was 0.3% in the second quarter and 4.5% in the first six months of 2011. The total return on our fixed income portfolio was 2.4% in the second quarter and 3.2% in the first six months of 2011. The total return on our equity portfolio was a negative 3.6% in the second quarter and 6.5% in the first six months of 2011, compared with the S&P 500’s total return of 0.1% for the second quarter and 6.0% for the first six months of 2011.”

     Net earnings amounts include the following components:

	Three Months ended June 30,												Six Months ended June 30,
	Amount						Per Share						Amount						Per Share
(in millions, except per share amounts)	2011			2010			2011			2010			2011			2010			2011			2010
Net catastrophe (losses) after tax	$	(16.1	)	$	(13.1	)	$	(1.80	)	$	(1.44	)	$	(18.0	)	$	(12.9	)	$	(2.01	)	$	(1.41	)
Net realized capital gains after tax	$	4.2		$	21.7		$	0.47		$	2.37		$	26.8		$	38.8		$	3.00		$	4.24
Other than temporary impairment (losses) after tax		—		$	(3.7	)		—		$	(0.40	)		—		$	(4.4	)		—		$	(0.48	)

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     A summary of Alleghany’s pre-tax results for the three and six months ended June 30, 2011 and 2010 is as follows:

	Three Months ended									Six Months ended
	June 30,									June 30,
(in millions)	2011			2010			Change			2011			2010			Change
AIHL insurance group (1):
Underwriting profit (loss) (2)
RSUI	$	19.5		$	43.8		$	(24.3	)	$	68.5		$	80.6		$	(12.1	)
CATA		(1.7	)		2.7			(4.4	)		(1.0	)		3.0			(4.0	)
PCC		(20.6	)		(5.5	)		(15.1	)		(26.9	)		(10.9	)		(16.0	)
		(2.8	)		41.0			(43.8	)		40.6			72.7			(32.1	)
Net investment income		31.0			33.0			(2.0	)		61.2			66.3			(5.1	)
Net realized capital gains		6.5			32.7			(26.2	)		41.2			55.5			(14.3	)
Other than temporary impairment losses (3)		—			(5.7	)		5.7			—			(6.8	)		6.8
Other income, less other expenses		(7.2	)		(7.5	)		0.3			(16.9	)		(15.9	)		(1.0	)
Total AIHL insurance group	$	27.5		$	93.5		$	(66.0	)	$	126.1		$	171.8		$	(45.7	)
Corporate activities (4)
Net investment income		(2.4	)		(0.3	)		(2.1	)		(1.0	)		(2.2	)		1.2
Net realized capital gains		—			0.6			(0.6	)		—			4.3			(4.3	)
Other than temporary impairment losses		—			—			—			—			—			—
Other income		0.1			1.3			(1.2	)		0.8			1.3			(0.5	)
Corporate administration and other expenses		6.4			6.8			0.4			13.2			12.5			(0.7	)
Interest expense		4.3			0.1			(4.2	)		8.7			0.1			(8.6	)
Total Corporate activities		(13.0	)		(5.3	)		(7.7	)		(22.1	)		(9.2	)		(12.9	)
Total	$	14.5		$	88.2			($73.7	)	$	104.0		$	162.6		$	(58.6	)
Income taxes		(0.6	)		21.9			22.5			17.6			38.2			20.6
Net earnings	$	15.1		$	66.3		$	(51.2	)	$	86.4		$	124.4		$	(38.0	)

(1)	Alleghany Insurance Holdings LLC (“AIHL”), the holding company for Alleghany’s property and casualty and surety insurance operating units consisting of RSUI Group, Inc. (“RSUI”), Capitol Transamerica Corporation and Platte River Insurance Company (collectively, “CATA”) and Pacific Compensation Corporation (“PCC”), as well as AIHL Re LLC.
(2)	Represents net premiums earned less loss and loss adjustment expenses and commissions, brokerage and other underwriting expenses, all as determined in accordance with GAAP, and does not include net investment income, net realized capital gains, other-than-temporary impairment losses, other income or other expenses. Please refer to “Comment on Regulation G” elsewhere herein.
(3)	Reflects impairment charges for unrealized losses related to the investment portfolio that are required to be charged against earnings as realized losses.
(4)	Corporate activities consist of Alleghany Properties Holdings LLC, Alleghany’s investments in Homesite Group Incorporated (“Homesite”) and ORX Exploration, Inc. (“ORX”), and Corporate activities at the parent level.

     Results for the second quarter of 2011, compared with the corresponding 2010 period, primarily reflect a decrease in pre-tax net earnings at AIHL and higher pre-tax net losses at Corporate activities. The decrease in AIHL’s 2011 second quarter pre-tax earnings primarily reflects an underwriting loss at AIHL compared with an underwriting profit in the 2010 second quarter and a decrease in net realized capital gains. The underwriting loss at AIHL is primarily the result of an

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increase in loss and loss adjustment expenses at RSUI and PCC. The increase in RSUI’s loss and loss adjustment expenses in the 2011 second quarter primarily reflects the impact of higher catastrophe losses, and a $12.1 million release of prior year reserves during the period, compared with a $21.3 million release of prior year reserves during the corresponding 2010 period. The increase in loss and loss adjustment expenses at PCC primarily reflects the impact of a $15.0 million increase in prior year reserves during the 2011 second quarter, compared with no increase during the corresponding 2010 period. Results at Corporate activities in the 2011 second quarter primarily reflect higher interest expenses and lower net investment income. The higher interest expenses primarily reflect Alleghany’s issuance in the 2010 third quarter of senior long-term debt while the decrease in net investment income is due primarily to an increase in Alleghany’s equity share of losses related to Alleghany’s investment in Homesite.

     Results for the first six months of 2011, compared with the corresponding 2010 period, primarily reflect a decrease in pre-tax net earnings at AIHL and higher pre-tax net losses at Corporate activities. The decrease in AIHL’s pre-tax earnings in the first six months of 2011 primarily reflects lower underwriting profits at AIHL compared with the corresponding 2010 period and a decrease in net realized capital gains. The lower underwriting profit at AIHL is primarily the result of an increase in loss and loss adjustment expenses substantially resulting from the impact of a $15.0 million increase in prior year reserves at PCC during the first six months of 2011, compared with no increase during the corresponding 2010 period. Results at Corporate activities in the first six months of 2011 primarily reflect higher interest expenses substantially due to Alleghany’s issuance in the 2010 third quarter of senior long-term debt.

     Information regarding the pre-tax results of AIHL’s operating units is attached asExhibit A. During the first six months of 2011, Alleghany repurchased in the open market an aggregate of 66,341

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shares of its common stock for approximately $21.3 million, at an average price per share of $320.72 (such share and average price amounts are not adjusted for the stock dividend declared in February 2011), pursuant to the previously announced authorization by its Board of Directors to repurchase up to $300.0 million of Alleghany’s common stock. As of August 2, 2011, Alleghany had 8,862,012 shares of its common stock outstanding, adjusted to reflect the stock dividend declared in February 2011.

     Additional information regarding Alleghany’s 2011 results for the second quarter and first six months of 2011, 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 June 30, 2011, to be filed with the U.S. Securities and Exchange Commission (the “SEC”) on or about August 4, 2011. The Form 10-Q will be available on Alleghany’s website at www.alleghany.com and on the SEC’s website at www.sec.gov. Readers are urged to review the Form 10-Q for a more complete discussion of Alleghany’s financial performance.

Comment on Regulation G

     This press release includes certain non-GAAP financial measures. The reconciliations of such measures to the most comparable GAAP financial measures are included inExhibit A of this press release. Throughout this press release Alleghany presents its operations in the way it believes will be most meaningful and useful to the investing public and others who use such information in evaluating Alleghany’s results.

     Alleghany shows earnings before income taxes (a GAAP financial measure), as well as underwriting profit (a non-GAAP financial measure), which is earnings before income taxes, adjusted to exclude the impact of net investment income, net realized capital gains, other-than-temporary impairment losses and other income, less other expenses. The presentation of

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underwriting profit is intended to enhance the understanding of AIHL’s insurance operating units’ operating results by highlighting earnings attributable to their underwriting performance. With respect to AIHL’s insurance operating units, earnings before income taxes may show a profit despite an underlying underwriting loss. If underwriting losses persist over extended periods, an insurance company’s ability to continue as an ongoing concern may be at risk. Investors should consider the non-GAAP measures contained herein in addition to, and not as a substitute for, measures of financial performance prepared in accordance with GAAP.

# # #

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Forward-looking Statements

     This release contains disclosures which are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements include all statements that do not relate solely to historical or current facts, and can be identified by the use of words such as “may,” “will,” “expect,” “project,” “estimate,” “anticipate,” “plan,” “believe,” “potential,” “should,” “continue” or the negative versions of those words or other comparable words. These forward-looking statements are based upon Alleghany’s current plans or 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. These statements are not guarantees of future performance, and Alleghany has no specific intention to update these statements. The uncertainties and risks include, but are not limited to, risks relating to

• significant weather-related or other natural or human-made catastrophes and disasters;

• the cyclical nature of the property and casualty insurance industry;

• adverse loss development for events insured by Alleghany’s insurance operating units in either the current year or prior years;

• changes in market prices of Alleghany’s significant equity investments and changes in value of Alleghany’s debt securities portfolio;

• the long-tail and potentially volatile nature of certain casualty lines of business written by AIHL’s insurance operating units;

• the cost and availability of reinsurance;

• exposure to terrorist acts;

• the willingness and ability of AIHL’s insurance operating units’ reinsurers to pay reinsurance recoverables owed to such insurance operating units;

• changes in the ratings assigned to AIHL’s insurance operating units;

• claims development and the process of estimating reserves;

• legal and regulatory changes, including the new federal financial regulatory reform of the insurance industry established by the Dodd-Frank Wall Street Reform and Consumer Protection Act;

• the uncertain nature of damage theories and loss amounts; and

• increases in the levels of risk retention by AIHL’s insurance operating units.

     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 Alleghany has no control; and changes in Alleghany’s plans, strategies, objectives, expectations or intentions, which may happen at any time at its discretion. As a consequence, current plans, anticipated actions and future financial condition and results may differ from those expressed in any forward-looking statements made by Alleghany or on Alleghany’s behalf.

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ALLEGHANY CORPORATION
COMBINING STATEMENTS OF EARNINGS
(dollars in thousands)
(unaudited)

	THREE MONTHS ENDED 6/30/11									THREE MONTHS ENDED 6/30/10
	ALLEGHANY									ALLEGHANY
	INSURANCE			CORPORATE						INSURANCE			CORPORATE
	HOLDINGS			ACTIVITIES			COMBINED			HOLDINGS			ACTIVITIES			COMBINED
Revenues
Net premiums earned	$	183,878		$	0		$	183,878		$	188,809		$	0		$	188,809
Net investment income		30,990			(2,445	)		28,545			32,957			(263	)		32,694
Net realized capital gains		6,490			0			6,490			32,749			559			33,308
Other than temporary impairment losses		0			0			0			(5,703	)		0			(5,703	)
Other income		166			82			248			150			1,351			1,501
Total revenues	$	221,524			($2,363	)	$	219,161		$	248,962		$	1,647		$	250,609
Costs and expenses
Loss and loss adjustment expenses		122,619			0			122,619			83,027			0			83,027
Commissions, brokerage and other underwriting expenses		64,132			0			64,132			64,773			0			64,773
Other operating expenses		7,333			1,340			8,673			7,553			529			8,082
Corporate administration		12			4,990			5,002			12			6,312			6,324
Interest expense		(54	)		4,322			4,268			145			71			216
Total costs and expenses	$	194,042		$	10,652		$	204,694		$	155,510		$	6,912		$	162,422
Earnings (loss) before income taxes	$	27,482			($13,015	)	$	14,467		$	93,452			($5,265	)	$	88,187
Income taxes								(615	)								21,916
Net earnings							$	15,082								$	66,271

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ALLEGHANY CORPORATION
COMBINING STATEMENTS OF EARNINGS
(dollars in thousands)
(unaudited)

	SIX MONTHS ENDED 6/30/11							SIX MONTHS ENDED 6/30/10
	ALLEGHANY							ALLEGHANY
	INSURANCE		CORPORATE					INSURANCE			CORPORATE
	HOLDINGS		ACTIVITIES			COMBINED		HOLDINGS			ACTIVITIES			COMBINED
Revenues
Net premiums earned	$	364,858	$	0		$	364,858	$	383,509		$	0		$	383,509
Net investment income		61,178		(1,054	)		60,124		66,338			(2,215	)		64,123
Net realized capital gains		41,182		0			41,182		55,444			4,331			59,775
Other than temporary impairment losses		0		0			0		(6,780	)		0			(6,780	)
Other income		297		836			1,133		287			1,347			1,634
Total revenues	$	467,515		($218	)	$	467,297	$	498,798		$	3,463		$	502,261
Costs and expenses
Loss and loss adjustment expenses		193,641		0			193,641		179,654			0			179,654
Commissions, brokerage and other underwriting expenses		130,660		0			130,660		131,129			0			131,129
Other operating expenses		17,113		1,806			18,919		15,911			1,022			16,933
Corporate administration		23		11,358			11,381		24			11,534			11,558
Interest expense		24		8,696			8,720		294			141			435
Total costs and expenses	$	341,461	$	21,860		$	363,321	$	327,012		$	12,697		$	339,709
Earnings (loss) before income taxes	$	126,054		($22,078	)	$	103,976	$	171,786			($9,234	)	$	162,552
Income taxes							17,554								38,112
Net earnings						$	86,422							$	124,440

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ALLEGHANY CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(dollars in thousands, except share amounts)

	June 30,			December 31,
	2011			2010
Assets
Investments
Available for sale securities at fair value:
Equity securities (cost: 2011 $1,406,542; 2010 $1,310,009)	$	1,642,108		$	1,500,686
Debt securities (amortized cost: 2011 $2,706,761; 2010 $2,778,117)		2,795,231			2,832,411
Short-term investments		262,445			264,811
		4,699,784			4,597,908
Other invested assets		198,878			207,294
Total investments		4,898,662			4,805,202
Cash		85,484			76,741
Premium balances receivable		195,985			128,075
Reinsurance recoverables		872,589			873,295
Ceded unearned premium reserves		162,773			144,065
Deferred acquisition costs		72,125			67,692
Property and equipment at cost, net of accumulated depreciation and amortization		20,269			19,504
Goodwill and other intangibles, net of amortization		140,635			142,312
Current taxes receivable		12,529			0
Net deferred tax assets		37,196			77,147
Other assets		117,620			97,666
	$	6,615,867		$	6,431,699
Liabilities and Stockholders’ Equity
Losses and loss adjustment expenses	$	2,324,386		$	2,328,742
Unearned premiums		588,848			523,927
Senior Notes		298,979			298,923
Reinsurance payable		67,241			41,500
Current taxes payable		0			3,220
Other liabilities		306,964			326,519
Total liabilities		3,586,418			3,522,831
Common stock (shares authorized: 2011 and 2010 — 22,000,000; issued and outstanding: 2011 — 9,117,787; 2010 — 9,300,448)		9,117			9,118
Contributed capital		937,057			928,816
Accumulated other comprehensive income		218,149			170,262
Treasury stock, at cost (2011 — 232,914 shares; 2010 — 351,532 shares)		(68,271	)		(99,686	)
Retained earnings		1,933,397			1,900,358
Total stockholders’ equity		3,029,449			2,908,868
	$	6,615,867		$	6,431,699

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Exhibit A

AIHL Operating Unit Pre-Tax Results

	Three months ended June 30, 2011												Six months ended June 30, 2011
(in millions, except ratios)	RSUI			CATA			PCC			AIHL			RSUI			CATA			PCC			AIHL
Gross premiums written	$	320.7		$	38.6		$	0.7		$	360.0		$	532.9		$	76.2		$	1.1		$	610.2
Net premiums written		206.6			36.2			1.8			244.6			337.4			71.6			2.2			411.2
Net premiums earned (1)	$	144.4		$	37.9		$	1.6		$	183.9		$	286.0		$	77.1		$	1.7		$	364.8
Loss and loss adjustment expenses		84.0			22.5			16.1			122.6			135.2			41.6			16.8			193.6
Commissions, brokerage and other underwriting expenses (2)		40.9			17.1			6.1			64.1			82.3			36.5			11.8			130.6
Underwriting profit (loss) (3)	$	19.5		$	(1.7	)	$	(20.6	)	$	(2.8	)	$	68.5		$	(1.0	)	$	(26.9	)	$	40.6
Net investment income (1)											31.0												61.2
Net realized capital gains (1)											6.5												41.2
Other than temporary impairment losses (1)											—												—
Other income (1)											0.1												0.3
Other expenses (2)											7.3												17.2
Earnings before income taxes										$	27.5											$	126.1
Loss ratio (4)		58.2	%		59.5	%		1006.1	%		66.7	%		47.3	%		53.9	%		992.3	%		53.1	%
Expense ratio (5)		28.3	%		45.1	%		386.6	%		34.9	%		28.8	%		47.4	%		697.2	%		35.8	%
Combined ratio (6)		86.5	%		104.6	%		1392.7	%		101.6	%		76.1	%		101.3	%		1689.5	%		88.9	%

	Three months ended June 30, 2010												Six months ended June 30, 2010
(in millions, except ratios)	RSUI			CATA			PCC			AIHL			RSUI			CATA			PCC			AIHL
Gross premiums written	$	300.6		$	47.0		$	(0.6	)	$	347.0		$	522.6		$	87.5		$	1.9		$	612.0
Net premiums written		185.1			44.3			(0.6	)		228.8			315.5			82.5			1.8			399.8
Net premiums earned (1)	$	146.3		$	41.5		$	1.0		$	188.8		$	296.6		$	82.1		$	4.9		$	383.6
Loss and loss adjustment expenses		62.3			19.6			1.1			83.0			135.2			40.6			4.0			179.8
Commissions, brokerage and other underwriting expenses (2)		40.2			19.2			5.4			64.8			80.8			38.5			11.8			131.1
Underwriting profit (loss) (3)	$	43.8		$	2.7		$	(5.5	)	$	41.0		$	80.6		$	3.0		$	(10.9	)	$	72.7
Net investment income (1)											33.0												66.3
Net realized capital gains (1)											32.7												55.5
Other than temporary impairment losses (1)											(5.7	)											(6.8	)
Other income (1)											0.2												0.3
Other expenses (2)											7.7												16.2
Earnings before income taxes										$	93.5											$	171.8
Loss ratio (4)		42.6	%		47.2	%		110.8	%		44.0	%		45.6	%		49.4	%		82.1	%		46.8	%
Expense ratio (5)		27.4	%		46.3	%		518.7	%		34.3	%		27.3	%		47.0	%		241.7	%		34.2	%
Combined ratio (6)		70.0	%		93.5	%		629.5	%		78.3	%		72.9	%		96.4	%		323.8	%		81.0	%

(1)	Represent components of total revenues.
(2)	Commissions, brokerage and other underwriting expenses represent commission and brokerage expenses and that portion of salaries, administration and other operating expenses attributable to underwriting activities, whereas the remainder constitutes other expenses.
(3)	Represents net premiums earned less loss and loss adjustment expenses and commissions, brokerage and other underwriting expenses, all as determined in accordance with GAAP, and does not include net investment income, net realized capital gains, other-than-temporary impairment losses, other income and other expenses. Underwriting profit does not replace net earnings determined in accordance with GAAP as a measure of profitability; rather, we believe that underwriting profit, which does not include net investment income, net realized capital gains, other-than-temporary impairment losses, other income and other expenses, enhances the understanding of AIHL’s insurance operating units’ operating results by highlighting net earnings attributable to their underwriting performance. With the addition of net investment income, net realized capital gains, other-than-temporary impairment losses, other income and other expenses, reported pre-tax net earnings (a GAAP measure) may show a profit despite an underlying underwriting loss. Where underwriting losses persist over extended periods, an insurance company’s ability to continue as an ongoing concern may be at risk. Therefore, we view underwriting profit as an important measure in the overall evaluation of performance.
(4)	Loss and loss adjustment expenses divided by net premiums earned, all as determined in accordance with GAAP.
(5)	Commissions, brokerage and other underwriting expenses divided by net premiums earned, all as determined in accordance with GAAP.
(6)	The sum of the loss ratio and expense ratio, all as determined in accordance with GAAP, representing the percentage of each premium dollar an insurance company has to spend on losses (including loss adjustment expenses) and commissions, brokerage and other underwriting expenses.

A-1