ALLEGHANY CORPORATION ACQUIRES EMPLOYERS DIRECT CORPORATION

NEW YORK, NY – July 18, 2007 – Alleghany Corporation (NYSE:Y) announced today that it has completed the acquisition of Employers Direct Corporation (“EDC”) for a purchase price of approximately $192.5 million. EDC, which was founded in 2002, is an insurance holding company based in Agoura Hills, California. EDC writes workers’ compensation insurance on a direct basis primarily in the State of California through its wholly-owned subsidiary, Employers Direct Insurance Company. Management and the approximately 175 employees of EDC will continue with EDC. James Little will continue to serve as the President and Chief Executive Officer of EDC, and Ronald Groden will continue to serve as Executive Vice President and Chief Financial Officer.

Alleghany is engaged through its subsidiary Alleghany Insurance Holdings LLC (consisting of its insurance operating units RSUI Group, Inc., Capitol Transamerica Corporation, and Darwin Professional Underwriters, Inc.) in the property and casualty insurance business.

This press release contains forward-looking statements with respect to the anticipated effects of the transaction. Actual results of the transaction could be significantly different. Factors that could affect results include those set forth in filings made by Alleghany with the U.S. Securities and Exchange Commission. Although forward-looking statements help to provide complete information about future prospects, readers should keep in mind that forward-looking statements are much less reliable than historical information.

Alleghany Corporation
7 Times Square Tower, 17th Floor
New York, NY 10036
Contact: R.M. Hart
Telephone: 212.752.1356