EMPLOYERS DIRECT To Be Acquired by Alleghany Corporation

Agoura Hills, CA - April 30, 2007 - Alleghany Corporation (NYSE: Y) has entered into a definitive agreement with Employers Direct Corporation ("EDC") and its shareholders, primarily Golden Gate Capital and a private equity fund managed by Swiss Re, to acquire all the outstanding shares of EDC for $195.0 million. The transaction has been approved by the Boards of Directors of Alleghany and Employers Direct and is subject to certain closing conditions, including the receipt of regulatory approvals. Upon closing, which is estimated to occur in the third quarter of 2007, Employers Direct will become an indirect wholly-owned subsidiary of Alleghany.

EDC's operating subsidiary, Employers Direct Insurance Company, is California's only specialty direct writer of workers' compensation insurance, and currently insures 740 of California's premier businesses with over 130,000 employees. The operating businesses of Alleghany function in an entrepreneurial climate as quasi-autonomous enterprises, and the employees and management of EDC will remain led by its co-founders, Chairman, President & CEO James E. Little and Vice Chairman, Executive Vice President & CFO Ronald A. Groden. James E. Little said, "Employers Direct has had substantial profitable growth during our nearly five years of operations, but the time had come to find an investor who could help us achieve our next level of growth. Alleghany provides Employers Direct with industry expertise, financial strength, and long-term stability."

Alleghany with $6.2 billion in assets and $2.5 billion in stockholders' equity is primarily engaged in property and casualty insurance business. The insurance operating subsidiaries of Alleghany's two wholly-owned insurance holding companies, Capitol Transamerica Corporation and RSUI Group, Inc., are all rated "A" by A.M. Best. Alleghany is currently in discussions with A.M. Best about obtaining a similar rating for Employers Direct Insurance Company upon the closing of this transaction. "Our agreement to acquire EDC reflects Alleghany's strategy of investing in well-positioned and well-managed financial services companies at prices we believe are reasonable. We believe that EDC's unique operating model has good growth prospects, and the addition of a workers' compensation insurer to our existing portfolio of insurance companies will provide balance to our risk portfolio. We look forward to welcoming EDC and its fine management and employees to the Alleghany family of companies," said Weston M. Hicks, Alleghany's President & CEO.

Wachovia Securities acted as exclusive financial advisor to EDC and its shareholders in connection with this transaction.

About EMPLOYERS DIRECT INSURANCE COMPANY
Employers Direct Insurance Company is California's only specialty direct writer of workers' compensation insurance. Founded in 2002, Employers Direct has been widely accepted by business owners throughout California as a result of providing highly competitive rates, claims services designed to fight fraud and abuse, and loss prevention services that assist employers to create safe work environments. As a newer company, Employers Direct is unburdened by legacy systems and takes advantage of the latest technology to provide its customers with 24/7 access to all policy and claims information via a secure Internet portal. Employers Direct is proud that a growing number of California's best-run privately-held companies count themselves as policyholders. Niche industries include hotels, restaurants, golf and country clubs, new car dealers, food processors, manufacturing companies, specialty supermarket chains, and retailers. Online at www.employersdirect.com.