Exhibit 99.1

ALLEGHANY CORPORATION
375 Park Avenue
New York, NY 10152


      Contact: Robert M. Hart
      (212) 752-1356



                                                           FOR IMMEDIATE RELEASE

            NEW YORK, N.Y. - DECEMBER 23, 2004 - Alleghany Corporation (NYSE: Y)
today announced that it has signed a definitive agreement providing for the
merger of its industrial fasteners business Heads & Threads International LLC
with an acquisition vehicle formed by a private investor group led by Heads &
Threads management and Capital Partners, Inc. of Greenwich, Connecticut.

            Under the terms of the proposed transaction, Alleghany will receive
merger consideration of approximately $55 million in cash, subject to adjustment
based upon net book value at the closing date. Alleghany does not expect that
the transaction will have a material effect on after-tax earnings per share for
2004 fourth quarter or the year ended 2004. The transaction has been approved by
the Board of Directors of Alleghany and is expected to close on December 31,
2004. The merger is subject to customary closing conditions.

            John J. Burns, Jr., President and chief executive officer of
Alleghany, said, "This should prove to be an attractive transaction for all
concerned. Alleghany has owned the Heads & Threads business since 1974 and
during that time, it has established itself as one of the nation's leading
importers and distributors of steel fasteners. With this transaction, Heads &
Threads will have the opportunity to continue its growth on an independent
basis."

            Heads & Threads is an international logistics business that imports
and sells commercial fasteners and mill products for resale through distributors
and packagers that serve original equipment manufacturers, maintenance and
repair operators, construction and retail customers. Heads & Threads is
headquartered in Bloomingdale, Illinois and has five distribution centers and
six warehouses serving major metropolitan areas with same day or next day
delivery.

            In addition to the industrial fasteners business conducted by Heads
& Threads, Alleghany is engaged through its subsidiary Alleghany Insurance
Holdings LLC (consisting of RSUI Group, Inc., Capitol Transamerica Corporation
and Darwin Professional Underwriters, Inc.) in the property and casualty
business and through its subsidiary World Minerals Inc. in the industrial
minerals business.

            This press release contains forward-looking statements with respect
to the anticipated effects of the transaction. Actual results of the transaction
could be significantly different. Factors that could affect results include
those set forth in filings made by Alleghany with the Securities and Exchange
Commission. 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.

                                      # # #


                                      -2-