Exhibit 99.1

ALLEGHANY CORPORATION REPORTS 2009 SECOND QUARTER RESULTS — STOCKHOLDERS’ EQUITY PER COMMON SHARE INCREASES 2.4 PERCENT SINCE 2008 YEAR END

          NEW YORK, NY, August 6, 2009 — Stockholders’ equity per common share of Alleghany Corporation (NYSE-Y) at June 30, 2009 was $284.82, an increase of 2.4% from stockholders’ equity per common share of $278.17 at December 31, 2008 (all as adjusted for the stock dividend declared in February 2009), Weston M. Hicks, President and chief executive officer of Alleghany, announced today. The increase in stockholders’ equity per common share primarily reflects Alleghany’s earnings in the 2009 first half, partially offset by the dilutive effect of the mandatory conversion of all outstanding shares of Alleghany’s 5.75% Mandatory Convertible Preferred Stock on June 15, 2009, net of share repurchases during the 2009 period. Cash and invested assets, on a consolidated basis, were approximately $4.26 billion at June 30, 2009, a decrease of 0.8% from approximately $4.29 billion at December 31, 2008, reflecting, among other things, repurchases by Alleghany of shares of its capital stock for approximately $153.0 million during the first six months of 2009.

          Alleghany’s net earnings in the 2009 second quarter were $46.0 million, or $5.11 per common share (presented on a basic basis throughout), compared with net earnings of $17.8 million, or $1.59 per common share, in the second quarter of 2008. For the first six months of 2009, net earnings were $90.6 million, or $9.92 per common share, compared with net earnings of $113.7 million, or $12.36 per common share in the first six months of 2008. Net earnings amounts include the following components:

		Three Months ended June 30,																Six Months ended June 30,
(in millions, except for per										Per Share																Per Share
share amounts)		2009				2008				2009				2008				2009				2008				2009				2008
Net catastrophe losses after tax		$	3.3			$	13.1			$	0.39			$	1.54			$	6.4			$	13.0			$	0.75			$	1.53
Net realized capital gains after tax		$	51.7			$	16.4			$	6.04			$	1.93			$	91.0			$	74.8			$	10.69			$	8.80
Other than temporary impairment losses after tax		$	6.3			$	30.6			$	0.73			$	3.60			$	49.3			$	40.4			$	5.79			$	4.75

          A summary of Alleghany’s results for the three and six months ended June 30, 2009 and 2008 is as follows:

		Three months ended												Six Months ended
		June 30												June 30
(in millions)		2009				2008				Change				2009				2008				Change
AIHL insurance group (1):
Underwriting profit (loss) (2)
RSUI		$	40.8			$	54.7			$	(13.9	)		$	83.0			$	93.3			$	(10.3	)
CATA			3.7				3.5				0.2				5.9				7.7				(1.8	)
EDC			(54.1	)			(29.9	)			(24.2	)			(60.7	)			(33.0	)			(27.7	)
AIHL Re			—				—				—				—				0.1				(0.1	)
			(9.6	)			28.3				(37.9	)			28.2				68.1				(39.9	)
Net investment income			27.7				30.6				(2.9	)			54.7				62.2				(7.5	)
Net realized capital gains			19.0				24.3				(5.3	)			26.5				35.9				(9.4	)
Other than temporary impairment losses (3)			(9.7	)			(47.1	)			37.4				(75.8	)			(62.1	)			(13.7	)
Other income, less other expenses			(11.4	)			(11.5	)			0.1				(19.8	)			(22.5	)			2.7
Total AIHL insurance group			16.0				24.6				(8.6	)			13.8				81.6				(67.8	)
Corporate activities (4)
Net investment income			(3.0	)			4.2				(7.2	)			(3.1	)			7.9				(11.0	)
Net realized capital gains			60.5				1.0				59.5				113.5				79.1				34.4
Other than temporary impairment losses			—				—				—				—				—				—
Other income			0.1				—				0.1				0.1				—				0.1
Corporate administration and other expenses			7.7				9.2				1.5				8.0				19.8				11.8
Interest expense			0.2				0.2				—				0.3				0.3				—
Total			65.7				20.4				45.3				116.0				148.5				(32.5	)
Income taxes			19.7				7.4				(12.3	)			25.4				44.9				19.5
Earnings from continuing operations			46.0				13.0				33.0				90.6				103.6				(13.0	)
Earnings from discontinued operations, net of tax (5)			—				4.8				(4.8	)			—				10.1				(10.1	)
Net earnings		$	46.0			$	17.8			$	28.2			$	90.6			$	113.7			$	(23.1	)

2009 second quarter results, compared with results of the corresponding 2008 period, primarily reflect:

	•		an increase in earnings from continuing operations before income taxes at Corporate activities, primarily due to an increase in net realized capital gains of $60.5 million resulting principally from sales at the parent level of Burlington Northern Santa Fe Corporation common stock in the 2009 period compared with no such sales in the 2008 period; partially offset by
	•		a decrease in earnings from continuing operations before income taxes at AIHL,

primarily due to lower underwriting profits; which reflect (i) an increase in EDC’s underwriting loss, principally as a result of a substantial decrease in net premiums earned, a $34.5 million reserve increase in the 2009 period (compared with a $24.7 million reserve increase in the 2008 period), and an $8.0 million increase in its premium deficiency reserve; (ii) a decrease in underwriting profit at RSUI primarily due to lower net premiums earned resulting from the impact of continuing competition; and (iii) lower other than temporary impairment losses due in part to comparatively improved equity market returns in the 2009 period, which partially offset the impact of lower underwriting profits.

2009 six month results, compared with results of the corresponding 2008 period, primarily reflect:

	•		a decrease in earnings from continuing operations before income taxes at AIHL primarily due to: (i) an increase in EDC’s underwriting loss principally as a result of the factors discussed above with respect to the 2009 second quarter; (ii) a decrease in underwriting profit at RSUI primarily due to lower net premiums earned resulting from the impact of continuing competition, partially offset by a decrease in loss and loss adjustment expenses primarily as a result of lower net premium volume and lower property losses; and (iii) an increase in other than temporary impairment losses with respect to AIHL’s investment portfolio; partially offset by
	•		an increase in earnings from continuing operations before income taxes at Corporate activities, primarily due to an increase in net realized capital gains resulting from $113.1 million of sales at the parent level of Burlington Northern Santa Fe Corporation common stock in the 2009 first half compared with $78.1 million of such sales in the 2008 first half.

          Mr. Hicks commented that “The first half of 2009 saw the continuation of a challenging investment environment and intense competition in the property and casualty insurance market. In this environment, Alleghany’s approach is to manage expenses prudently, preserve capital where possible and remain positioned to participate in a recovery when such a recovery eventually emerges. In this regard, Alleghany saw some improvement in the market value of its equity portfolio in the 2009 second quarter and maintained its strong liquidity with approximately $726.3 million of marketable securities and cash at the parent level and AIHL.”

          “With respect to operating unit results, despite intense competition, RSUI and CATA produced underwriting profits in the second quarter and first six months of 2009. On the other hand, EDC’s results in the first half of 2009 continued to be poor, with EDC reporting an underwriting loss of $60.7 million in the period, primarily reflecting a substantial decrease in net premiums earned, a $34.5 million reserve increase, and an $8.0 million increase in its premium deficiency reserve. In June, EDC determined that it was unable to write business at rates it deemed adequate due to the current state of the California workers’ compensation market, and as a result, determined to cease soliciting new or renewal business on a direct basis commencing August 1, 2009. In light of such determination, EDC took corresponding expense reduction steps, including staff reductions. A.M. Best downgraded EDC’s insurance company rating from A- (Excellent) with a negative outlook to B++ (Good) with a

stable outlook. EDC intends to re-enter the market at such time as it determines that rates have returned to an adequate level.”

          Information regarding the pre-tax results from continuing operations of AIHL’s operating units is attached as Exhibit A. During the first six months of 2009, Alleghany purchased in the open market an aggregate of 141,035 shares of its common stock for approximately $35.7 million, at an average price per share of $253.06, and an aggregate of 442,998 shares of its 5.75% Mandatory Convertible Preferred Stock for approximately $117.4 million, at an average price per share of $264.92, pursuant to the previously announced authorization by its Board of Directors to repurchase up to $300.0 million of Alleghany’s common and preferred stock. On June 15, 2009, all outstanding shares of the 5.75% Mandatory Convertible Preferred Stock were mandatorily converted into shares of Alleghany common stock. Each outstanding share of the 5.75% Mandatory Convertible Preferred Stock was automatically converted into 1.0139 shares of Alleghany common stock, and Alleghany issued approximately 698,009 shares of its common stock for the 688,621 shares of the 5.75% Mandatory Convertible Preferred Stock that were outstanding at the date of the mandatory conversion. As of June 30, 2009, Alleghany had 9,013,587 shares of its common stock outstanding, adjusted to reflect the common stock dividend declared in February 2009.

          Additional information regarding the results for the second quarter and first six months of 2009 of Alleghany and its operating units will be contained in Alleghany’s Quarterly Report on Form 10-Q for the period ended June 30, 2009, to be filed with the U.S. Securities and Exchange Commission on or about August 6, 2009. A copy of the Form 10-Q will be available on Alleghany’s website at www.alleghany.com or on the Securities and Exchange Commission’s website at www.sec.gov. Readers are urged to review the Form 10-Q for a more complete discussion of Alleghany’s financial performance in the second quarter and first six months of 2009.

Comment on Regulation G

          This press release includes certain non-GAAP financial measures. The reconciliations of such measures to the most comparable GAAP financial measures are included in Exhibit A of this press release. Throughout this press release Alleghany presents its operations in the way it believes will be most meaningful and useful to the investing public and others who use such information in evaluating Alleghany’s results.

     Alleghany shows earnings from continuing operations, before income taxes (a GAAP financial measure), as well as underwriting profit (a non-GAAP financial measure), which is earnings from continuing operations, before income taxes, adjusted to exclude the impact of net investment income, net realized capital gains and losses, and other income, less other expenses. The presentation of underwriting profit is intended to enhance the understanding of AIHL’s insurance operating units’ operating results by highlighting earnings attributable to their underwriting performance. With respect to AIHL’s insurance operating units, earnings from continuing operations, before income taxes, may show a profit despite an underlying underwriting loss. If underwriting losses persist over extended periods, an insurance company’s ability to continue as an ongoing concern may be at risk. Investors should consider the non-GAAP measures contained herein in addition to, and not as a substitute for, measures of financial performance prepared in accordance with GAAP.

# # #

Forward-looking Statements

          This release contains disclosures which are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements include all statements that do not relate solely to historical or current facts, and can be identified by the use of words such as “may,” “will,” “expect,” “project,” “estimate,” “anticipate,” “plan,” “believe,” “potential,” “should,” “continue” or the negative versions of those words or other comparable words. These forward-looking statements are based upon Alleghany’s current plans or expectations and are subject to a number of uncertainties and risks that could significantly affect current plans, anticipated actions and Alleghany’s future financial condition and results. These statements are not guarantees of future performance, and Alleghany has no specific intention to update these statements. The uncertainties and risks include, but are not limited to, risks relating to

	•		significant weather-related or other natural or human-made catastrophes and disasters;
	•		the cyclical nature of the property and casualty industry;
	•		changes in market prices of our significant equity investments and changes in value of our debt securities portfolio;
	•		the long-tail and potentially volatile nature of certain casualty lines of business written by Alleghany’s insurance operating units;
	•		the cost and availability of reinsurance;
	•		exposure to terrorist acts;
	•		the willingness and ability of Alleghany’s insurance operating units’ reinsurers to pay reinsurance recoverables owed to such insurance operating units;
	•		changes in the ratings assigned to Alleghany’s insurance operating units;
	•		claims development and the process of estimating reserves;
	•		legal and regulatory changes;
	•		the uncertain nature of damage theories and loss amounts;
	•		increases in the levels of risk retention by Alleghany’s insurance operating units; and
	•		adverse loss development for events insured by Alleghany’s insurance operating units in either the current year or prior years.

Additional risks and uncertainties include general economic and political conditions, including the effects of a prolonged U.S. or global economic downturn or recession; changes in costs; variations in political, economic or other factors; risks relating to conducting operations in a competitive environment; effects of acquisition and disposition activities, inflation rates or recessionary or expansive trends; changes in interest rates; extended labor disruptions, civil unrest or other external factors over which Alleghany has no control; and changes in Alleghany’s plans, strategies, objectives, expectations or intentions, which may happen at any time at Alleghany’s discretion. As a consequence, current plans, anticipated actions and future financial condition and results may differ from those expressed in any forward-looking statements made by Alleghany or on its behalf.

Exhibit A

AIHL Operating Unit Pre-Tax Results

(in millions, except ratios)		RSUI				AIHL Re				CATA				EDC				AIHL
Three months ended June 30, 2009
Gross premiums written		$	337.0				—			$	45.1			$	15.6			$	397.7
Net premiums written			209.5				—				43.4				11.7				264.6
Net premiums earned (1)		$	159.2				—			$	41.2			$	4.1			$	204.5
Loss and loss adjustment expenses			76.0				—				19.0				48.9				143.9
Commission, brokerage and other underwriting expenses (2)			42.4				—				18.5				9.3				70.2
Underwriting profit (loss) (3)		$	40.8				—			$	3.7			$	(54.1	)		$	(9.6	)
Net investment income (1)																			27.7
Net realized capital gains (1)																			19.0
Other than temporary impairment losses (1)																			(9.7	)
Other income (1)																			0.4
Other expenses (2)																			(11.8	)
Earnings from continuing operations, before income taxes																		$	16.0
Loss ratio (4)			47.8	%			—				46.1	%			n/m				70.4	%
Expense ratio (5)			26.6	%			—				45.0	%			n/m				34.4	%
Combined ratio (6)			74.4	%			—				91.1	%			n/m				104.8	%
Three months ended June 30, 2008
Gross premiums written		$	314.4				—			$	56.9			$	19.7			$	391.0
Net premiums written			192.1				—				49.2				18.9				260.2
Net premiums earned (1)		$	174.2				—			$	48.0			$	18.0			$	240.2
Loss and loss adjustment expenses			76.1				—				23.9				39.4				139.4
Commission, brokerage and other underwriting expenses (2)			43.4				—				20.6				8.5				72.5
Underwriting profit (loss) (3)		$	54.7				—			$	3.5			$	(29.9	)		$	28.3
Net investment income (1)																			30.6
Net realized capital gains (1)																			24.3
Other than temporary impairment losses (1)																			(47.1	)
Other income (1)																			0.1
Other expenses (2)																			(11.6	)
Earnings from continuing operations, before income taxes																		$	24.6
Loss ratio (4)			43.7	%			—				49.8	%			218.2	%			58.0	%
Expense ratio (5)			24.9	%			—				43.0	%			47.3	%			30.2	%
Combined ratio (6)			68.6	%			—				92.8	%			265.5	%			88.2	%

Exhibit A

AIHL Operating Unit Pre-Tax Results

(in millions, except ratios)		RSUI				AIHL Re				CATA				EDC				AIHL
Six months ended June 30, 2009
Gross premiums written		$	587.1				—			$	87.2			$	32.1			$	706.4
Net premiums written			359.2				—				81.6				27.0				467.8
Net premiums earned (1)		$	319.9				—			$	83.2			$	19.5			$	422.6
Loss and loss adjustment expenses			153.5				—				39.9				63.3				256.7
Commission, brokerage and other underwriting expenses (2)			83.4				—				37.4				16.9				137.7
Underwriting profit (loss) (3)		$	83.0				—			$	5.9			$	(60.7	)		$	28.2
Net investment income (1)																			54.7
Net realized capital gains (1)																			26.5
Other than temporary impairment losses (1)																			(75.8	)
Other income (1)																			0.9
Other expenses (2)																			(20.7	)
Earnings from continuing operations, before income taxes																		$	13.8
Loss ratio (4)			48.0	%			—				48.0	%			324.7	%			60.8	%
Expense ratio (5)			26.1	%			—				44.9	%			87.1	%			32.6	%
Combined ratio (6)			74.1	%			—				92.9	%			411.8	%			93.4	%
Six months ended June 30, 2008
Gross premiums written		$	569.5			$	0.2			$	112.1			$	43.0			$	724.8
Net premiums written			344.5				0.2				95.2				40.0				479.9
Net premiums earned (1)		$	352.0			$	0.2			$	94.9			$	38.6			$	485.7
Loss and loss adjustment expenses			170.6				—				47.4				56.6				274.6
Commission, brokerage and other underwriting expenses (2)			88.1				0.1				39.8				15.0				143.0
Underwriting profit (loss) (3)		$	93.3			$	0.1			$	7.7			$	(33.0	)		$	68.1
Net investment income (1)																			62.2
Net realized capital gains (1)																			35.9
Other than temporary impairment losses (1)																			(62.1	)
Other income (1)																			0.2
Other expenses (2)																			(22.7	)
Earnings from continuing operations, before income taxes																		$	81.6
Loss ratio (4)			48.5	%			—				50.0	%			146.6	%			56.6	%
Expense ratio (5)			25.0	%			28.4	%			41.9	%			38.8	%			29.4	%
Combined ratio (6)			73.5	%			28.4	%			91.9	%			185.4	%			86.0	%

ALLEGHANY CORPORATION
COMBINING STATEMENTS OF EARNINGS
(dollars in thousands)
(unaudited)

		THREE MONTHS ENDED 6/30/09												THREE MONTHS ENDED 6/30/08
		ALLEGHANY												ALLEGHANY
		INSURANCE				CORPORATE								INSURANCE				CORPORATE
		HOLDINGS				ACTIVITIES				COMBINED				HOLDINGS				ACTIVITIES				COMBINED
Revenues
Net premiums earned		$	204,530			$	0			$	204,530			$	240,238			$	0			$	240,238
Net investment income			27,659				(3,135	)			24,524				30,613				4,155				34,768
Net realized capital gains			18,949				60,543				79,492				24,215				1,066				25,281
Other than temporary impairment losses			(9,675	)			0				(9,675	)			(47,064	)			0				(47,064	)
Other income			435				136				571				123				(1	)			122
Total revenues			241,898				57,544				299,442				248,125				5,220				253,345
Costs and expenses
Loss and loss adjustment expenses			143,917				0				143,917				139,455				0				139,455
Commissions, brokerage and other underwriting expenses			70,272				0				70,272				72,542				0				72,542
Other operating expenses			11,730				455				12,185				11,482				820				12,302
Corporate administration			3				7,227				7,230				0				8,466				8,466
Interest expense			0				169				169				0				179				179
Total costs and expenses			225,922				7,851				233,773				223,479				9,465				232,944
Earnings from continuing operations, before income taxes		$	15,976			$	49,693				65,669			$	24,646				($4,245	)			20,401
Income taxes											19,668												7,380
Earnings from continuing operations											46,001												13,021
Discontinued operations
Earnings from discontinued operations											0												10,662
Income taxes											0												5,843
Earnings from discontinued operations, net											0												4,819
Net earnings										$	46,001											$	17,840
Net earnings										$	46,001											$	17,840
Preferred dividends											2,250												4,305
Net earnings available to common stockholders										$	43,751											$	13,535

ALLEGHANY CORPORATION
COMBINING STATEMENTS OF EARNINGS
(dollars in thousands)
(unaudited)

		SIX MONTHS ENDED 6/30/09												SIX MONTHS ENDED 6/30/08
		ALLEGHANY												ALLEGHANY
		INSURANCE				CORPORATE								INSURANCE				CORPORATE
		HOLDINGS				ACTIVITIES				COMBINED				HOLDINGS				ACTIVITIES				COMBINED
Revenues
Net premiums earned		$	422,574			$	0			$	422,574			$	485,719			$	0			$	485,719
Net investment income			54,681				(3,088	)			51,593				62,168				7,872				70,040
Net realized capital gains			26,464				113,510				139,974				35,904				79,160				115,064
Other than temporary impairment losses			(75,801	)			0				(75,801	)			(62,135	)			0				(62,135	)
Other income			887				133				1,020				190				(5	)			185
Total revenues			428,805				110,555				539,360				521,846				87,027				608,873
Costs and expenses
Loss and loss adjustment expenses			256,754				0				256,754				274,686				0				274,686
Commissions, brokerage and other underwriting expenses			137,722				0				137,722				142,951				0				142,951
Other operating expenses			20,491				907				21,398				22,602				1,431				24,033
Corporate administration			20				7,118				7,138				0				18,414				18,414
Interest expense			0				332				332				0				336				336
Total costs and expenses			414,987				8,357				423,344				440,239				20,181				460,420
Earnings from continuing operations, before income taxes		$	13,818			$	102,198				116,016			$	81,607			$	66,846				148,453
Income taxes											25,441												44,885
Earnings from continuing operations											90,575												103,568
Discontinued operations
Earnings from discontinued operations											0												22,196
Income taxes											0												12,064
Earnings from discontinued operations, net											0												10,132
Net earnings										$	90,575											$	113,700
Net earnings										$	90,575											$	113,700
Preferred dividends											6,158												8,610
Net earnings available to common stockholders										$	84,417											$	105,090

ALLEGHANY CORPORATION
AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS

(in thousands, except share amounts)

		JUNE 30,
		2009				DECEMBER 31,
		(unaudited)				2008
ASSETS
Investments
Available for sale securities at fair value:
Equity securities		$	611,814			$	629,518
Debt securities			2,987,702				2,760,019
Short-term investments			341,989				636,197
		$	3,941,505			$	4,025,734
Other invested assets			243,286				250,407
Total investments		$	4,184,791			$	4,276,141
Cash			74,941				18,125
Premium balances receivable			210,737				154,022
Reinsurance recoverables			1,016,532				1,056,438
Ceded unearned premium reserves			198,593				185,402
Deferred acquisition costs			74,265				71,753
Property and equipment — at cost, net of accumulated depreciation and amortization			21,101				23,310
Goodwill and other intangibles, net of amortization			138,200				151,223
Current taxes receivable			4,171				14,338
Net deferred tax assets			143,645				130,293
Other assets			108,159				100,783
		$	6,175,135			$	6,181,828
LIABILITIES AND STOCKHOLDERS’ EQUITY
Losses and loss adjustment expenses		$	2,584,975			$	2,578,590
Unearned premiums			672,688				614,067
Reinsurance payable			80,778				53,541
Other liabilities			269,441				288,941
Total liabilities		$	3,607,882			$	3,535,139
Stockholders’ equity			2,567,253				2,646,689
		$	6,175,135			$	6,181,828
Shares of common stock outstanding (adjusted for stock dividends)			9,013,587				8,438,226