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Alleghany Corporation

From Alfawiki
Alleghany Corporation
Company typePublic (until acquisition)
IndustryInvestment holding, Insurance
Founded1929
FounderOris Van Sweringen, Mantis Van Sweringen
DefunctOctober 2022 (acquired by Berkshire Hathaway)
FateAcquired by Berkshire Hathaway
Headquarters
United States
Key people
John J. Burns (CEO), Fred M. Kirby II (former chairman)
ProductsProperty, casualty, surety, and fidelity insurance; diverse subsidiaries including TransRe, RSUI, CapSpecialty, Alleghany Capital holdings
ParentBerkshire Hathaway

Alleghany Corporation is a U.S.-based investment holding entity established in 1929 by railroad magnates Oris and Mantis Van Sweringen to serve as a holding company for their rail assets. The company was reestablished under Delaware jurisdiction in 1984. On March 21, 2022, Berkshire Hathaway proposed an $11.6 billion acquisition of Alleghany, which was finalized in October 2022.

Following bankruptcy during the Great Depression, leadership transitioned to Robert Ralph Young and Allan Price Kirby. Young utilized Alleghany as a platform to confront the banking interests of J.P. Morgan, securing control through a 1954 proxy battle over the New York Central Railroad (NYC). Despite this victory, NYC’s deteriorating finances culminated in Young’s suicide in 1958 after dividend suspensions. His successor, Alfred E. Perlman, aimed to stabilize the railroad via mergers. In 1968, NYC combined with the Pennsylvania Railroad, headed by Stuart T. Saunders, creating Penn Central Transportation Company. The forced acquisition of the financially unstable New Haven Railroad and ensuing fiscal difficulties led to Penn Central’s bankruptcy in 1970. By 1976, many assets were absorbed by Conrail, marking Alleghany’s exit from direct railroad operations.

Alleghany retained some railroad-related holdings, with CEO John J. Burns serving on Burlington Northern Santa Fe Corporation’s board between 1995 and 2004.

Currently, Alleghany concentrates on insurance sectors including property, casualty, surety, and fidelity coverage. Until his passing in February 2011, Fred M. Kirby II—son of Allan Kirby—served as chairman and was periodically recognized among Forbes’ list of wealthiest Americans.

Current portfolio

Alleghany's holdings encompass:[1][2]

  • TransRe, a reinsurer acquired in 2012[3]
  • RSUI, an insurance company purchased in 2003[4]
  • CapSpecialty, formerly Capitol Insurance Companies, acquired in 2002[5]
  • Alleghany Capital, overseeing mid-market enterprises such as:
    • Precision Cutting Technologies, which owns manufacturers of machine tools including Bourn & Koch, Diamond Technology Innovations, CID Performance Tooling, and Supermill
    • R.C. Tway Company (Kentucky Trailer), a producer of trailers serving the moving sector
    • W&W/AFCO Steel, specializing in steel fabrication and erection
    • Wilbert Funeral Services, a manufacturer of concrete burial vaults
    • IPS-Integrated Project Services, providing services to pharmaceutical and biotechnology industries
    • Jazwares, a toy and consumer goods firm owning brands such as Kellytoy and Wicked Cool Toys[6][7]
    • Concord Hospitality, engaged in hotel development, ownership, and management for brands including Hyatt, Hilton, Marriott, among others
  • Alleghany Properties, a real estate company

Previous assets

Among the company's previous assets are:[1][8]

  1. ↑ 1.0 1.1 Cite error: Invalid <ref> tag; no text was provided for refs named currentpast
  2. ↑ Lua error in Module:Citation/CS1/Configuration at line 2123: attempt to index field '?' (a nil value).
  3. ↑ Alleghany and Transatlantic Announce Successful Closing of Merger
  4. ↑ Alleghany Completes Acquisition of R&SA’s RSUI
  5. ↑ Capitol Transamerica Acquired by Alleghany
  6. ↑ Lua error in Module:Citation/CS1/Configuration at line 2123: attempt to index field '?' (a nil value).
  7. ↑ Lua error in Module:Citation/CS1/Configuration at line 2123: attempt to index field '?' (a nil value).
  8. ↑ Lua error in Module:Citation/CS1/Configuration at line 2123: attempt to index field '?' (a nil value).
  9. ↑ Alleghany Buying Calif. Workers’ Comp Specialist Employers Direct
  10. ↑ Employers Direct Relaunched as PacificComp to Work With Independent Agents
  11. ↑ Lua error in Module:Citation/CS1/Configuration at line 2123: attempt to index field '?' (a nil value).
  12. ↑ Lua error in Module:Citation/CS1/Configuration at line 2123: attempt to index field '?' (a nil value).
  13. ↑ Laredo Oil Purchases Stranded Oil Resources Corp