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.

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