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ALLEGHANY ANNOUNCES EARNINGS

 ALLEGHANY ANNOUNCES EARNINGS
 NEW YORK, Feb. 27 /PRNewswire/ -- Net earnings of Alleghany


Corporation (NYSE: Y) were $10.01 per share in the year 1991 compared with $10.38 per share in 1990, F.M. Kirby, chairman of the board of Alleghany, announced today. In the 1991 fourth quarter, net earnings were $4.48 per share compared with $2.58 per share the year before.
 Comparative results may be summarized as follows:
 ALLEGHANY CORPORATION
 (In millions, except per-share amounts)
 Fourth quarter Year
 1991 1990 1991 1990
 Revenues(A) $409.7 $294.9 $1,417.0 $1,224.3
 Earnings (loss) from
 continuing operations before
 income taxes (9.9) 13.6 36.4 103.2
 Earnings (loss) from cont.
 operations (7.9) 12.6 21.7 65.1
 Earnings from discont.
 operations net 36.5 3.9 42.3 3.5
 Net earnings 28.6 16.5 64.0 68.6
 Per share of common stock:(B)
 Continuing operations $(1.23) $1.99 $3.40 $9.85
 Discontinued operations 5.71 0.59 6.61 0.53
 Net earnings 4.48 2.58 10.01 10.38
 Average number of
 outstanding shares
 of common stock(B) 6,394,594 6,420,607 6,392,777 6,611,071
 (A) -- Amounts previously reported as "net gain (loss) on investment transactions" have been reclassified and reported as a component of revenues.
 (B) -- Adjusted to reflect dividends of common stock declared in March 1990 and 1991.
 Figures for the year 1990 reflect a second-quarter gain of $30 million before tax ($19.8 million after tax) on the sale of Alleghany's interest in the St. Paul Companies, Inc. Commenting ion the 1991 figures, Kirby stated: "1991 was a year of positive accomplishments for Alleghany in a difficult operating environment. Several important non- recurring items are included in our operating results for the year's final quarter:
 "The sale of our property and casualty insurance subsidiary, The Shelby Insurance Company, was completed in December, contributing a gain of $33 million before tax ($31 million after tax). Shelby's operating results, as well as the gain on its sale, have been classified as earnings from discontinued operations.
 "In December our consumer banking subsidiary, Sacramento Savings Bank, booked a provision of $11.8 million before tax ($7.1 million after tax) to reduce the carrying value of its investment real estate, which the bank is required to divest under FIRREA. Of this pretax amount, $8.2 million represents reserves equivalent to sales or write-offs required by the Federal Deposit Insurance Corporation to be made in 1992.
 "During 1991 certain costs related to the acquisition and integration of Ticor Title Insurance Company of California (which was purchased by our title insurance unit, Chicago Title and Trust Company, on March 8, 1991) were charged against an integration reserve set up at the time of purchase. However, to the extent that in the integration process Chicago Title shut down its own facilities rather than Ticor's, the related expenses must be charged to earnings rather than treated as an acquisition cost and charged against the reserve. As a result, Chicago Title booked a charge of $9.2 million before tax ($6 million after tax) against earnings in 1991. On the other hand, Chicago Title's results in the fourth quarter benefited from a sharply higher level of mortgage refinancings, which has been continuing in 1992.
 "At year-end, Alleghany had several equity investments that were trading below cost, principally its holdings of Armco Inc. and Cyclops Industries, Inc. Alleghany booked a charge to earnings of $10.4 million before tax ($6.9 million after tax) in order to mark these securities to market."
 Alleghany common stockholders' equity was $724 million at 1991 year-end compared with $648 million the year before. Common stockholders' equity per share was $113.25 at 1991 year-end compared with $101.48 the year before.
 On a separate matter, Alleghany announced that its 1992 annual meeting of stockholders will be held at Chemical Bank, 270 Park Ave., New York City on April 24, 1992, at 2 p.m. local time.
 -0- 2/27/92
 /CONTACT: T.E. Somerville of Alleghany, 212-752-1356/
 (Y) CO: Alleghany Corporation ST: New York IN: INS SU: ERN


CK-SM -- NY044 -- 3279 02/27/92 12:44 EST
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Date:Feb 27, 1992
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