Alleghany Corporation

from Wikipedia, the free encyclopedia
Alleghany Corporation

logo
legal form Corporation
ISIN US0171751003
founding 1929
Seat New York City , United StatesUnited StatesUnited States 
management Weston M. Hicks ( CEO )
Number of employees 4,402
sales $ 6.425 billion
Branch Insurance
Website www.alleghany.com
As of December 31, 2017

Alleghany Corporation is a US holding company headquartered in New York . The company is listed on the New York Stock Exchange under the symbol "Y".

history

The brothers Oris and Mantis Van Sweringen began to set up a corporate congregation council at the beginning of the 20th century. Initially investing in real estate and property in and around Cleveland , they soon began investing in the railroad sector. By the mid-1920s, the brothers had acquired shares in the railroad companies New York, Chicago and St. Louis Railroad (Nikel Plate Road), Chesapeake and Ohio Railway , Pere Marquette Railroad and Erie Railroad . As a result, they tried to combine these societies into a common system. In 1925 a corresponding application was made to the regulatory authority Interstate Commerce Commission . After three years of examination, the latter rejected these plans in the spring of 1928.

With the merger of the railway companies, the brothers had originally hoped to obtain more liquid funds through further share issues of the new railway company and new holding companies to finance their corporate network. Since this route was blocked, the Van Sweringens founded the Alleghany Corporation in January 1929. This holding company served to protect further investments in the rail sector from access by the regulatory authority and to generate corresponding liquid funds through the issue of shares.

By drafting the articles of association accordingly, the Van Sweringen were able to control values ​​of around 85 million dollars without investing a lot of their own capital. Around 2/3 of the capital was brought in by non-voting share buyers.

Alleghany Corporation was 15.6% owned by Vaness Corporation (80% owned by Van Sweringens) and 35.7% owned by Cleveland Terminals Building Company (100% Van Sweringen Corporation; 71, 3% owned by Vaness Corporation). In April 1930 the company acquired the Chicago and Eastern Illinois Railroad and 46% of the Missouri Pacific Railroad .

Allen P. Kirby, Robert R. Young and Frank F. Kolbe with their lawyer Walter S. Orr (far left) on May 6, 1937

The world economic crisis from 1929 began to destabilize the business model of the Van Sweringen brothers. Some of the railway companies had to file for bankruptcy. As a result, the entire company network ran into economic difficulties. The company was able to save itself for a while with bridging loans and aid from the state-run Reconstruction Finance Corporation . When they were finally unable to service loans from JP Morgan in 1935, the brothers tried to save their fortune by selling it for $ 3.1 million to George A. Ball's newly founded Midamerica Corporation. Finally, in 1937, a group of investors led by Wall Street brokers Robert R. Young , Allen P. Kirby and Frank F. Kolbe took over Alleghany Corporation for $ 6.375 million.

From 1946, the Alleghany Corporation acquired shares in the New York Central Railroad . In 1954, the time finally came for a proxy fight to take over this railway company. In advance, the Alleghany sold its stake in the Chesapeake & Ohio Railroad to Cyrus Eaton , an industrialist from Cleveland. The takeover battle was won and Young became chairman of New York Central. However, he was unable to keep the promises that Young made to his investors. In 1958 he therefore committed suicide. As a result, Alleghany reduced its stake in New York Central again, but in 1965 still owned around 15% of the shares. These were sold until 1966.

From 1949, the company began to participate in the investment fund company Investors Diversified Services (IDS). This created a second mainstay alongside the railway companies.

After Young's death, Allen Kirby became president and chairman of the company. The first years of his tenure were marked by the defense against several takeover attempts. In 1961 the brothers Clint Jr. and John Murchison , who were also involved in IDS, succeeded in gaining control of the company. However, since Kirby still controlled 35% of the shares, he was able to block any changes in the company. The Murchisons finally gave up and sold their shares in Bertin Gamble in 1962. He finally sold his shares in 1963 to Kirby and his supporters. Thus, from 1963, Kirby controlled 43% of the shares, another 16% were owned by friends and supporters.

From 1967 there was a takeover battle for the Missouri Pacific Railroad with the Mississippi River Fuel Corporation . In 1974 an agreement was reached as part of a financial reorganization and in the following year the Alleghany sold its shares to the Mississippi River Fuel. In the same year, Allen Kirby suffered a severe stroke. His son Fred M. Kirby succeeded him as Chairman of the Board.

In 1970 the Jones Motor Company was acquired. This did not develop as expected and was sold again in 1982.

As a result, the Alleghany Corporation became more and more a Kirby family investment company. The corresponding investments were chosen accordingly.

In 1974 the company took over 95% of MSL Industries . The Allied Structural Steel Company, acquired in 1976, and later the Bibb Steel and Supply Company were incorporated into this company.

A realignment of the company began in the mid-1980s. First, in January 1984, IDS was sold to American Express for $ 1 billion . This gave Alleghany Amex shares. This stake was then sold in 1986. When the sale of the state railway company Conrail was up for debate in the mid-1980s , Alleghany also applied for the contract. However, Conrail was fully floated on the stock exchange in 1987. Alleghany Financial Corporation was founded at the end of 1984. The company's goal was to acquire insurance and other financial services companies. In 1985, the Chicago Title and Trust Company was bought by the Lincoln National Corporation. In 1986 the Shelby Insurance Company followed and in 1987 the SAFECO Title Insurance Company (later Security Union Title Insurance Company). The company reorganization was completed at the end of 1986. In advance, all investments in the non-financial area were divested. All companies from the insurance and financial sectors were bundled in the remaining Alleghany Financial Corporation. As a result, the old Alleghany Corporation from 1929 was liquidated. The Alleghany Financial Corporation then renamed itself to Alleghany Corporation.

In 1987, the steel production of Cyclops Corporation was acquired by the Dixons Group and merged with the steel production of MSL Industries and immediately afterwards listed as Cyclops Industries Inc.

In 1989, Alleghany began to acquire new companies, such as the insurer Sacramento Savings & Loan Associations and two associated companies. In 1991 Chicago Title bought Ticor Title Insurance. In the same year, Celite Corporation, a company in the industrial filters and minerals sector, was purchased and Shelby Insurance was sold.

The following year, Fred Kirby II stepped down as Chief Executive Officer, but remained Chairman of the board until 2006. During his time there were conflicts within the family about the direction of the company and Kirby's management style. However, due to the information policy of the company and the family, little was known about this in the public. His successor as CEO was John Burns Jr., who had headed the company as president since 1977 and from 2006 also took over the position of chairman of the board. Burns was the first company leader since 1957 who was not from the Kirby family.

In 1992 the mineral company Harborlite Corporation and in 1993 the insurer Underwriters Reinsurance Company were acquired.

In 1994 the Alleghany Corporation acquired shares in the Santa Fe Pacific Corporation and supported the railway company in its merger with Burlington Northern Inc. to form Burlington Northern Santa Fe .

In June 1998, the insurance division of Chicago Title & Trust was sold as Chicago Title Corporation. The company later merged with Fidelity National Financial Inc.

In order to increase profits, the company portfolio was restructured and various companies were sold. So in 2000 the Underwriters Reinsurance to the Swiss Re America Holding Corporation. The subsidiary Alleghany Asset Management was sold to ABN AMRO North America Holding in 2001. In the wake of the terrorist attack of September 11, 2001 and the resulting and expected burdens for insurers, Alleghany Underwritings Holdings was also sold.

The insurance company Capitol Transamerica Corporation with its subsidiary Platte River Insurance Company was acquired in 2002 and Royal Specialty Underwriting Inc. in 2003. At the end of 2004, the screw importer Heads & Threads International was the last remnant of MSL Industries as part of a management buy-out from the group .

In 2004 Weston Hicks succeeded John Burns as CEO. Under his leadership, the filter manufacturers Celite and Harborlite, which were bundled in the company World Minerals Inc., were sold to the French group Imerys . The insurance company PacificComp was acquired in 2007 and sold to Copperpoint Mutual Insurance at the end of 2017. With Alleghany Capital Partners (now Roundwood Asset Management), founded in 2007, as a consulting firm, and Alleghany Capital Corporation, strategic investments are made in various companies.

Company headquarters

The company was originally based in the Cleveland Terminal Tower . The company later moved to New York City. For example, rooms in Park Avenue Plaza (55East 52nd St ) were rented until 1995 and rooms in the Seagram Building (375 Park Avenue) until 2005 . From 2005 to 2015 the company resided in the Times Square Tower (7 Times Square Tower) and since then in the World Apparel Center (1411 Broadway).

Corporate governance

President and CEO

  • 1929–1933: Oris Paxton Van Sweringen
  • 1933–1937: George A. Ball
  • 1937-1961: Allan P. Kirby
  • 1961–1962: John Murchison
  • 1962-1963: Bertin Gamble
  • 1963-1968: Charles Ireland
  • 1968–1977: Fred M. Kirby (CEO until 1992)
  • 1977–2004: John J. Burns Jr. (CEO since 1992)
  • since 2004: Weston M. Hicks

Chairman of the board

  • 1937-1958: Robert R. Young
  • 1958-1961: Allan P. Kirby
  • 1961–1962: John Murchison
  • 1963-1967: Allan P. Kirby
  • 1967-2006: Fred M. Kirby
  • 2006–2010: John J. Burns Jr.
  • since 2010: Jefferson W. Kirby

Important holdings

Web links

Individual evidence

  1. ↑ Leadership
  2. ↑ a b Form 10-K 2017 , accessed on March 24, 2018
  3. ^ Horace Coon: Money to Burn: Great American Foundations and Their Money . Transaction Publishers, 1938, ISBN 978-1-4128-2896-3 ( google.de [accessed February 13, 2018]).
  4. ^ Railroad King: New Style . In: The New Republic . ( newrepublic.com [accessed April 6, 2018]).
  5. ↑ Jonathan P. Hicks: COMPANY NEWS; BIG BRITISH RETAILER TO ACQUIRE CYCLOPS . ( nytimes.com [accessed April 9, 2018]).
  6. ^ Alleghany Enters Agreement to Sell Its Industrial Fasteners Business . ( businesswire.com [accessed April 10, 2018]).