This Day On The Street
Continue to site
ADVERTISEMENT
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

Validus' CEO Discusses Q2 2012 Results - Earnings Call Transcript

AlphaCat has almost $1 billion in assets under management and we feel as though we are just scratching the surface in this segment. AlphaCat contributed $11.8 million in operating income to the Group in the quarter.

Our strategy is to be a leader in the global short-tail risk business and we’ve spent almost seven years building the size, market position and operating businesses to achieve this goal. It’s very gratifying to us to see all of our businesses generating excellent results and continuing to market leading franchises.

So, with that, I’ll turn the call over to Jeff Consolino, who will walk through our financial results in more detail.

Jeff Consolino

Thank you, Ed. I’m excited to be here to discuss our second quarter results with all of you today. Before we get started on the results of operations and financial position, I want to remind you of the changes we’ve made to our segment disclosure, which were effective starting with the first quarter of this year.

By subdividing the previous Validus Re segment into AlphaCat and Validus Re, we are able to point you more clearly to the two important additions to our business, which I decided, which are contributing to our results this quarter, each within the AlphaCat segment.

First, PaCRe is included in our consolidated results of operations within the AlphaCat segment. You will recall that we announced the formation of PaCRe on April 4th, with $500 million of initial capital.

Our ownership interest is 10%. But as we hold the majority of the voting rights, the financial results for PaCRe our consolidated in our financial statements. With that portion of PaCRe’s earnings and equity attributable to third parties recorded as non-controlling interest on our June 30 balance sheet and in our quarterly income statement.

Secondly, we announced on June 1st the capitalization of AlphaCat Re 2012. Our voting interest in AlphaCat Re 2012 is less than 50%, so we account for our 37.9% interest on the equity method, consistent with the accounting treatment for our 22.3% interest in AlphaCat Re 2011.

3 of 4

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

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

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG

Markets

Chart of I:DJI
DOW 16,569.72 -85.05 -0.51%
S&P 500 1,982.63 -5.03 -0.25%
NASDAQ 4,814.8350 +2.1270 0.04%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs