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Validus Announces Full Year 2012 Net Income Of $408.4 Million And Fourth Quarter 2012 Net Loss Of $(90.7) Million

Stocks in this article: VR

Net unrealized (losses) on investments for the three months ended December 31, 2012 were $(35.9) million compared to gains of $2.2 million for the three months ended December 31, 2011, a decrease of $38.0 million, or 1,760.8%. Net unrealized gains for the year ended December 31, 2012 were $17.6 million compared to (losses) of $(20.0) million for the year ended December 31, 2011, an increase of $37.6 million or 188.0%.

Finance Expenses

Finance expenses for the three months ended December 31, 2012 were $14.5 million compared to $13.5 million for the three months ended December 31, 2011, an increase of $1.0 million, or 7.3%. Finance expenses for the year ended December 31, 2012 were $53.9 million compared to $54.8 million for the year ended December 31, 2011, a decrease of $1.0 million or 1.8%.

Shareholders' Equity and Capitalization

As at December 31, 2012, total shareholders' equity was $4.5 billion including $434.3 million of noncontrolling interest. Shareholders' equity available to Validus was $4.0 billion as at December 31, 2012. Diluted book value per common share was $35.22 at December 31, 2012, compared to $36.27 at September 30, 2012. Diluted book value per common share is a non-GAAP financial measure. A reconciliation of this measure to shareholders' equity is presented at the end of this release.

Total capitalization at December 31, 2012 was $5.2 billion, including $540.7 million of junior subordinated deferrable debentures and $247.1 million of senior notes.

Share Repurchases

A summary of the share repurchases made to date under the Company’s previously announced share repurchase program is as follows:

 

Share Repurchase Activity (Expressed in thousands of U.S. dollars except for share and per share information)

As at September 30, 2012

      Quarter ended
Effect of share repurchases: (cumulative) October November December December 31, 2012
Aggregate purchase price (a) $ 1,206,845 $ $
Shares repurchased 43,138,057
Average price (a) $ 27.98 $ $ $ $

Estimated cumulative net accretive(dilutive) impact on:

Diluted BV per common share (b) 1.93
Diluted EPS - Quarter (c) 0.32
 
 

Share Repurchase Activity (Expressed in thousands of U.S. dollars except for share and per share information)

Effect of share repurchases: As at December 31, 2012   January  

As at January 29, 2013

  Cumulative to Date Effect
Aggregate purchase price (a) $ 1,206,845 $ $ $ 1,206,845
Shares repurchased 43,138,057 43,138,057
Average price (a) $ 27.98 $ $ $ 27.98
(a)   Share transactions are on a trade date basis through January 29, 2013 and are inclusive of commissions. Average share price is rounded to two decimal places.
 
(b) As the average price per share repurchased during the periods 2009, 2010, 2011 and 2012 was lower than the book value per common share, the repurchase of shares increased the Company's period ending book value per share.
 
(c) The estimated impact on diluted earnings per share was calculated by comparing reported results versus i) net income per share plus an estimate of lost net investment income on the cumulative share repurchases divided by ii) weighted average diluted shares outstanding excluding the weighted average impact of cumulative share repurchases. The impact of cumulative share repurchases was accretive to diluted earnings per share.

Conference Call

The Company will host a conference call for analysts and investors on February 1, 2013 at 10:00 AM (Eastern) to discuss the fourth quarter 2012 financial results and related matters. The conference call may be accessed by dialing 1-866-713-8307 (toll-free U.S.) or 1-617-597-5307 (international) and entering the passcode 25455383. Those who intend to participate in the conference call should register at least ten minutes in advance to ensure access to the call. A telephone replay of the conference call will be available through February 15, 2013, by dialing 1-888-286-8010 (toll-free U.S.) or 1-617-801-6888 (international) and entering the passcode 13379088.

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