Net income was up 17% to $66.5m for Q1, compared to $56.7m a year ago
Validus Holdings has reported net income for the quarter ended 31 March 2008 of $66.5m, compared with $56.7m for the quarter ended 31 March 2007.
Net operating income for the first quarter of 2008 was $65.5m, compared with $53.7m for the first quarter of 2007.
Operating results of Talbot have been included in the consolidated financial statements from the acquisition date of 2 July 2007. The Validus data for first three months of 2007 refers only to the company prior to its acquisition of Talbot.
Further, the 2008 Validus data gives effect to the initial public offering which was consummated on 30 July 2007.
Consolidated operating highlights for the first quarter include the following:
Gross premiums written increased by 38.0% to $521.6m from $378.1m, due to the addition of Talbot which added $201.8m of gross premiums written and offset reduced gross premiums written in the Validus Re segment;
Net premiums earned increased by 161.8% to $291.9m from $111.5m, due primarily to the addition of Talbot which added $148.2m of net premiums earned;
Combined ratio of 82.4% which included $41.5m of incurred losses relating to significant first quarter property loss events (representing 14.2 percentage points of the consolidated 48.0% loss ratio), and $12.8m of favourable prior year loss reserve development benefiting the loss ratio by 4.4 percentage points;
Investment income increased by 94.9% to $36.0m from $18.5m primarily due to higher investment balances resulting from funds from operations and the addition of Talbot;
Net income increased by 17.1% to $66.5 million from $56.7 million, due to the addition of Talbot which added $16.0 million of net income and partially offset by higher corporate expenses.
Commenting on the first quarter of 2008 results, Ed Noonan, chairman and chief executive officer of Validus, stated: "We are pleased to report solid earnings and a 13.5% annualised return on average equity for the quarter. We benefitted greatly in the quarter from our acquisition of Talbot which has allowed us to grow our gross premium written by 38.0% and more fully diversify our global short-tail underwriting platform.
“In a quarter which saw individual risk losses of over $5bn in the global market and continued turmoil in the credit markets, reporting solid net income of $66.5m and maintaining a conservative balance sheet is a significant achievement for our company."