Alleghany (Y) Tops Q1 EPS by 26c

Alleghany (NYSE: Y) reported Q1 EPS of $8.19, $0.26 better than the analyst estimate of $7.93. Revenue for the quarter came in at $1.16 billion versus the consensus estimate of $1.13 billion.

Weston Hicks, President and chief executive officer of Alleghany stated, “The first quarter saw continued solid underwriting performance at Alleghany, led by strong results at TransRe and RSUI. These two franchises continued their track record of excellent performance despite a competitive market environment. TransRe’s underwriting profit in the quarter was $83.8 million, as favorable prior year loss reserve development of $38.4 million and a lack of catastrophe losses in the quarter aided its results. RSUI’s underwriting profit was $47.0 million, due primarily to a light catastrophe loss quarter and modest favorable prior year loss reserve development of $2.6 million. Net premiums written decreased modestly at TransRe, but were flat excluding the impact of foreign currency translation. Net premiums written also decreased slightly at RSUI, primarily due to the increased competition in its property line of business. By focusing on underwriting results, rather than driving premium growth, both of these organizations continue to take a disciplined approach to their business in the current challenging environment. Alleghany’s long-term view of the market, financial strength and patient investing style allow TransRe and RSUI to effectively compete and build value over the long-term.”

Hicks continued, “CapSpecialty and PacificComp continue to improve their operations and strengthen their organizations. Both companies are successfully expanding their niche product offerings, which has resulted in good top-line growth and improved expense ratios at both companies. CapSpecialty generated its second consecutive profitable underwriting quarter with a 99.1% combined ratio and PacificComp saw its combined ratio improve to 123.6%, compared with 131.2% for the 2014 first quarter.”

For earnings history and earnings-related data on Alleghany (Y) click here.

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