Alleghany Corporation Announces Divestiture of Stranded Oil Resources Corporation

Rhea-AI Summary

Alleghany Corporation (NYSE: Y) announced the exit from its investment in Stranded Oil Resources Corporation (SORC), effective December 31, 2020. This decision reflects a strategic move to streamline operations amid challenging market conditions in the upstream oil and gas sector. CEO Weston Hicks expressed gratitude to SORC's team for their efforts during this time. Alleghany is primarily focused on property and casualty reinsurance and insurance, managing various subsidiaries in these fields.

Positive

• Strategic divestiture from SORC potentially enhances focus on core operations.
• CEO's acknowledgment of SORC's team's efforts indicates a respectful exit strategy.

Negative

• Exiting SORC may signal underlying challenges in the oil and gas sector impacting investor confidence.

NEW YORK, Jan. 5, 2021 /PRNewswire/ -- Alleghany Corporation (NYSE: Y) today announced that it exited its investment in Stranded Oil Resources Corporation ("SORC") in a transaction that closed on December 31, 2020.

Weston Hicks, President and chief executive officer of Alleghany, stated, "I would like to thank Mark See and his team for their efforts at SORC over the years, operating in a difficult macroeconomic environment for upstream oil and gas production.  We wish them success in their future endeavors."

Olshan Frome Wolosky LLP acted as legal advisor to Alleghany.

About Alleghany Corporation

Alleghany Corporation (NYSE:Y) creates value through owning and supporting its operating subsidiaries and managing investments, anchored by a core position in property and casualty reinsurance and insurance. Alleghany's property and casualty subsidiaries include: Transatlantic Holdings, Inc., a leading global reinsurer; RSUI Group, Inc., which underwrites wholesale specialty insurance coverages including property, casualty, professional liability and directors' and officers' liability; and CapSpecialty, Inc., an underwriter of commercial property, casualty and surety insurance coverages. Alleghany's subsidiary Alleghany Capital Corporation owns and manages a diverse portfolio of non-financial businesses.

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SOURCE Alleghany Corporation

FAQ

What investment did Alleghany Corporation exit on December 31, 2020?

Alleghany Corporation exited its investment in Stranded Oil Resources Corporation (SORC) on December 31, 2020.

Why did Alleghany Corporation divest from SORC?

The divestiture was likely a strategic move to streamline operations amid a challenging macroeconomic environment for the oil and gas sector.

Who is the CEO of Alleghany Corporation?

Weston Hicks is the President and CEO of Alleghany Corporation.

What are the primary business focuses of Alleghany Corporation?

Alleghany Corporation primarily focuses on property and casualty reinsurance and insurance through its various subsidiaries.