Accordingly, there are or will be important factors that could cause actual results to differ materially from those indicated in such statements and, therefore, you should not place undue reliance on any such statements.
More details about these risks and uncertainties can be found in the Company’s most recent annual report on Form 10-K and quarterly report on Form 10-Q, both are filed with the U.S. Securities and Exchange Commission.
Management will also refer to certain non-GAAP financial measures when describing the company’s performance. These items are reconciled and explained in our earnings release and financial supplement.
With that, I’ll turn the call over to Ed Noonan.Ed Noonan Thanks, Jon. Good morning and thank you all for taking the time to join us today. This was a good quarter for Validus as we generated net income of $124 million, operating income of $93 million and annualized growth in diluted book value per share of 15.1%. We recorded losses of $63 million related to the sinking of the Costa Concordia and $21 million related to U.S. tornadoes. Both Talbot and Validus generated strong underwriting income in the quarter and we continue to operate in a favorable rate environment for all of our major classes. We also continued our growth in managed catastrophe risk during the quarter with formation of PaCRe, a new $500 million reinsurer that will be managed by our AlphaCat subsidiary. With that, I’ll turn the call over to Jeff and we’ll be back to give you more color on our operations following his description of our financial results. Jeff Consolino Thank you, Ed. Thank you all for joining the call this morning. Good to see so many familiar names up on our screen. Before we get started on the results of operations and financial position for the quarter, I want to make some reference to changes we’ve made in our disclosure package effective with this first quarter of 2012. Effective with this quarter we’ve refined our segment reporting. You’ll see in our earnings release and in our investor supplement that we sub-divided the previous Validus Re segment into Validus Re and AlphaCat. This has no effect on the Talbot segment.
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