This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Validus' CEO Discusses 1Q 2012 Results - Earnings Call Transcript

Stocks in this article: VR

If you look at our consolidated segment income statement on Page 12 and 35 in our investor supplement, you’ll see that we present, still, a Validus Re consolidated income statement, which is the summation of Validus Re sub-segment and the AlphaCat sub-segment. This is because when we prepare consolidated Validus Re financial statements, these segments are consolidated within the Validus Re legal entity.

For those of you who wish to measure financial models, you can break what you used to have as Validus Re into these two constituent parts. For those of you who prefer to analyze their business just on Validus Re and Talbot segments, we still provide you with the means to do so. You can call this Validus Re classic. However, effective with the second quarter, we’ll be consolidated PaCRe into the AlphaCat sub-segment, which will add substantially to the (inaudible) AlphaCat. So any work done on your models in advance for second quarter earnings will presumably be well worth it.

For this quarter the main earnings drivers for the AlphaCat segment are fees generated from this activities managing third party capital and the 22.3% equity method income in AlphaCat Re 2011’s earnings. To analyze this component, you’d need to use the 100% AlphaCat Re 2011 income statement. We’ve provided you with this on Page 35 of the supplement, along with the balance sheet on Page 34.

Next quarter we’ll do the same for PaCRe. You’ll need to add the unrealized investment gains or losses for PaCRe as another potentially significant source of earnings for AlphaCat. This would net of a 90% non-controlling interest in the $500 million PaCRe capital base.

For those of you who want to move from modeling our company on a Validus classic basis to our new segmentation, we’ve also furnished an 8-K last evening showing the re-segmentation by quarter for all of 2011.

Read the rest of this transcript for free on

3 of 3

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,053.71 +23.50 0.13%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs