Validus Q1 Net up 30% to $94.9 million

Bermuda-based Validus Holdings reported net income of $94.9 million, or $1.20 per diluted common share for the quarter ended March 31, 2009, compared with net income of $66.5 million, or $0.85 per diluted common share, for the quarter ended March 31, 2008.

Net operating income, which excludes capital gains/losses, for the first quarter of 2009 was $100.4 million, or $1.27 per diluted share, compared with net operating income of $65.5 million, or $0.84 per diluted common share, for the quarter ended March 31, 2008.

CEO Ed Noonan commented: “We are very pleased with the results of the first quarter, in which we produced an annualized operating return on average shareholders’ equity of 20.3 percent, diluted EPS of $1.20 and diluted operating EPS of $1.27.

“We continue to be positioned to benefit strongly from the improved pricing environment we see in our core short-tail lines of business. Our gross premiums written rose 16.9 percent in the quarter compared to the first quarter of 2008.

“Our Validus Re segment grew gross premiums written by 23.9 percent year-over-year and growth in gross premiums written in the Talbot segment was 12.9 percent. This growth was achieved in the Validus Re segment through strong renewal pricing at January 1 and in the Talbot segment through rate increases and the contributions from our new underwriting teams.

Validus report also listed the following earnings “highlights” for the first quarter:
— Gross premiums written of $609.9 million compared to $521.6 million for the same quarter last year an increase of $88.3 million or 16.9 percent;
— Net premiums earned of $318.8 million compared to $291.9 million for the same quarter last year an increase of $26.9 million or 9.2 percent;
— Combined ratio of 75.0 percent which included $8.1 million of favorable prior year loss reserve development, benefiting the loss ratio by 2.5 percentage points;
— Annualized return on average equity of 19.2 percent and annualized operating return on average equity of 20.3 percent.

The complete earnings report, additional information and details on accessing the earnings conference call, held May 5, may be obtained through the Investor Information section of the Company’s web site at: www.validusre.bm.

Source: Validus Holdings

Topics Profit Loss