Employers Direct Insurance Company Assigned Rating of "A-" by A.M. Best Company

Business Wire, August 21, 2007

AGOURA HILLS, Calif. -- Employers Direct Insurance Company, California's only specialty direct writer of workers' compensation insurance, today announced that A.M. Best has assigned it a financial strength rating of A- (Excellent) and an issuer credit rating of "a-". The A.M. Best financial size category (FSC) of Employers Direct is "VIII".

James E. Little, Chairman/President and CEO of Employers Direct, stated, "This is a milestone event for our company, and we are looking forward to serving the needs of our policyholders as a Best-rated company. I am especially pleased that we received an initial rating of A- (Excellent)."

The announcement by A.M. Best recognized Employers Direct's "effective low-cost, customer-centric business model and the timeliness of its entry into the California workers' compensation market at a time of capacity shortages, favorable legislative reforms, and price firming." Employers Direct is a subsidiary of Alleghany Corporation (NYSE:Y).

About EMPLOYERS DIRECT INSURANCE COMPANY

Employers Direct Insurance Company is California's only specialty direct writer of workers' compensation insurance. The company provides claims services designed to fight fraud and abuse and loss prevention services that assist employers to create safe work environments. Employers Direct 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. Niche industries include construction, hotels, restaurants, golf and country clubs, new car dealers, food processors, manufacturing companies, specialty supermarket chains, and retailers. Visit Employers Direct online at www.employersdirect.com.

About ALLEGHANY CORPORATION

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

About A.M. BEST COMPANY

A.M. Best is a full-service credit rating organization dedicated to serving the financial services industries, including the banking and insurance sectors. A.M. Best was founded in 1899 with the purpose of performing an objective role in the insurance industry toward the prevention and detection of insurer insolvency. This mission led to the development of Best's Ratings, which are now recognized worldwide as the benchmark for assessing insurers' financial strength and creditworthiness. Visit A.M. Best online at www.ambest.com.