Validus Reports 19.8% Annualized Return On Average Equity For The Third Quarter Of 2013

Validus Holdings, Ltd. (“Validus” or the “Company”) (NYSE: VR) today reported net income available to Validus of $183.4 million, or $1.77 per diluted common share for the three months ended September 30, 2013, compared to $207.3 million, or $2.11 per diluted common share, for the three months ended September 30, 2012. Net income available to Validus for the nine months ended September 30, 2013 was $437.3 million, or $3.99 per diluted common share compared to $499.2 million, or $4.88 per diluted common share, for the nine months ended September 30, 2012.

Net operating income available to Validus for the three months ended September 30, 2013 was $155.2 million, or $1.50 per diluted common share, compared to $170.6 million, or $1.74 per diluted common share, for the three months ended September 30, 2012. Net operating income available to Validus for the nine months ended September 30, 2013 was $482.3 million, or $4.41 per diluted common share, compared to $434.6 million, or $4.25 per diluted common share, for the nine months ended September 30, 2012.

Commenting on the financial results for the quarter ended September 30, 2013, Validus' Chairman and CEO Ed Noonan stated:

“Validus' size, scale and diversification across short tail classes of reinsurance and insurance continues to benefit our shareholders as evidenced by our strong results for the quarter. All three of Validus' operating segments - Validus Re, Talbot and AlphaCat - performed well which led to an overall 68.6% combined ratio and $166.8 million of underwriting income. Annualized return on average equity was 19.8% and diluted book value per share inclusive of dividends increased 5.2%."

Net income available to Validus, diluted earnings per share available to Validus, net operating income available to Validus, and diluted operating earnings per share available to Validus by entity for the three months ended September 30, 2013 were as follows:
   

Net Income Available to Validus
 

Diluted Earnings Per Share Available to Validus
   

Net Operating Income Available to Validus
   

Diluted Operating Earnings Per Share Available to Validus
(Expressed in millions of U.S. dollars, except per share information)
Validus Re $ 170.1 $ 153.9

Talbot

43.4

36.8
PaCRe, Ltd. 5.0 0.2
Other AlphaCat Companies 4.2 2.8
Corporate & Eliminations  

(39.3)
     

(38.5)
   
Total $ 183.4 $ 1.77 $ 155.2 $ 1.50

Net operating income (loss), a non-GAAP financial measure, is defined as net income (loss) excluding net realized and unrealized gains (losses) on investments, foreign exchange gains (losses) and non-recurring items. Net operating income (loss) available (attributable) to Validus is defined as above, but excludes income (loss) available (attributable) to noncontrolling interest. Reconciliations of these measures to net income (loss) and net income (loss) available (attributable) to Validus, the most directly comparable GAAP measures, are presented at the end of this release.

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