SCHEDULE 14A
                                 (RULE 14A-101)

                     INFORMATION REQUIRED IN PROXY STATEMENT

                            SCHEDULE 14A INFORMATION

                    Proxy Statement Pursuant to Section 14(a)
                     of the Securities Exchange Act of 1934

Filed by the Registrant [X]

Filed by a Party other than the Registrant [   ]

Check the appropriate box:

[ ]  Preliminary Proxy Statement             [ ]  Confidential, For Use of the
[ ]  Definitive Proxy Statement                   Commission Only (as
[X]  Definitive Additional Materials              permitted by Rule 14a-6(e)(2))
[ ]  Soliciting Material Under Rule 14a-12

                        CAPITOL TRANSAMERICA CORPORATION
- --------------------------------------------------------------------------------
                (Name of Registrant as Specified In Its Charter)

- --------------------------------------------------------------------------------
    (Name of Person(s) Filing Proxy Statement, if Other Than the Registrant)

Payment of Filing Fee (Check the appropriate box):

[ ]    No fee required.

[ ]    Fee computed on table below per Exchange Act Rules 14a-6(i)(1) and 0-11.

       (1)  Title of each class of securities to which transaction applies:

       (2)  Aggregate number of securities to which transaction applies:

       (3)  Per unit price or other underlying value of transaction computed
            pursuant to Exchange Act Rule 0-11 (set forth the amount on
            which the filing fee is calculated and state how it was
            determined):

       (4)  Proposed maximum aggregate value of transaction:

       (5)  Total fee paid:

[X]    Fee paid previously with preliminary materials:

[ ]    Check box if any part of the fee is offset as provided by Exchange
       Act Rule 0-11(a)(2) and identify the filing for which the offsetting
       fee was paid previously. Identify the previous filing by registration
       statement number, or the form or schedule and the date of its filing.

       (1)  Amount Previously Paid:

       (2)  Form, Schedule or Registration Statement No.:

       (3)  Filing Party:

       (4)  Date Filed:



                     [Capitol Transamerica Corporation Logo]


                                                               December 19, 2001


IF YOU HAVE ALREADY SENT IN YOUR PROXY CARD,
 PLEASE ACCEPT OUR THANKS AND DISREGARD THIS REQUEST.


To the Shareholders of
Capitol Transamerica Corporation

                                   A REMINDER

You were previously sent proxy solicitation material relating to the Special
Meeting of Shareholders of Capitol Transamerica Corporation to be held on
January 3, 2002, at 9:00 A.M. (CST). The meeting is being held to consider
approval of the acquisition of Capitol Transamerica Corporation by Alleghany
Corporation. On December 14, 2001, the Wisconsin Commissioner of Insurance
approved the acquisition from a regulatory perspective. A copy of the Press
Release is enclosed.

Regardless of the number of shares you own, it is extremely important that they
be represented at the Special Meeting.

Since the Special Meeting is fast approaching and the mail service is behind by
two or three days due to the Holiday Season, we urge you to sign, date and mail
the enclosed proxy card as soon as possible. A postage paid return envelope is
enclosed for your convenience.

If you have any questions, please do not hesitate to call Firstar Trust Company
the registrar and proxy agent, or call our offices directly.

Thank you for your help and cooperation.

Sincerely yours,

/s/ George A. Fait

George A. Fait
Chairman of the Board and President


Enclosures



                     [Capitol Transamerica Corporation Logo]

FOR IMMEDIATE RELEASE                                   Contact:  George A. Fait
                                                                  (608) 231-4456

                   CAPITOL TRANSAMERICA CORPORATION ANNOUNCES
                       WISCONSIN COMMISSIONER OF INSURANCE
                             APPROVAL OF ACQUISITION

         Madison, Wisconsin, December 14, 2001 - Capitol Transamerica
Corporation (Nasdaq: CATA) today announced that the Wisconsin Commissioner of
Insurance has approved the acquisition of Capitol Transamerica by Alleghany
Corporation (NYSE: Y), as contemplated by a merger agreement between the
parties. Completion of the merger remains subject to approval by holders of
two-thirds of Capitol Transamerica's outstanding shares of common stock and
satisfaction of other closing conditions. Capitol Transamerica has sent proxy
materials to its shareholders relating to the special meeting of its
shareholders to vote on the proposed transaction. The special meeting will take
place on January 3, 2002.

         As announced on July 20, 2001, under the terms of the merger agreement,
Alleghany Corporation will acquire Capitol Transamerica at a price of $16.50 in
cash per share of Capitol Transamerica common stock. The parties expect that the
closing will occur as soon as practicable after receiving the required
shareholder approval, after which Capitol Transamerica will be a wholly-owned
subsidiary of Alleghany Corporation.

         This press release contains forward-looking statements with respect to
the expected time of the closing of the transaction. The timing of the closing
could be significantly different, depending on the timing of satisfaction of the
remaining conditions to closing, among other factors. Although forward-looking
statements help to provide complete information about future prospects, readers
should keep in mind that forward-looking statements are much less reliable than
historical information.