Bermuda-based Validus Holdings posted a fall in profits for 2014, as losses in the third quarter took their toll.
In the third quarter of 2014, Validus’ profits took a dive as it suffered from high losses in its aviation war and energy lines. The Bermuda-based company’s profits fell to $39.7 million in the third quarter of 2014, compared with $183.4 million in the third quarter of 2013.
The company’s profits decreased to $481.3 million in 2014, compared with $532.7 million for the year ended December 31, 2013. However, in the fourth quarter of 2014 its profits grew to $125.9 million, an increase of 32 percent compared with $95.3 million in the fourth quarter of 2013.
Validus’ gross written premiums (GWP) grew 1.6 percent to $2.4 billion in 2014, compared with $2.4 billion for 2013.
Validus Re, the company’s reinsurance segment, also posted a drop in GWP to $1.1 billion for 2014, compared with $1.2 billion for 2013.
Its combined ratio deteriorated slightly to 73.7 percent for 2014, compared with 71.2 percent in 2013.
During the January 2015 renewal season, the Validus Re and AlphaCat segments underwrote $540.9 million in GWP, a decrease of 6 percent from the prior year renewal period.
Ed Noonan, chairman and chief executive officer, said: “During 2014, Validus delivered an impressive 13.2 percent operating return on average equity and 12.8 percent growth in book value per diluted share inclusive of dividends.
“We also completed an important strategic objective by acquiring Western World Insurance Group, a leading specialty lines insurance company. The addition of Western World provides Validus with a top notch underwriting and distribution platform in the United States, the world’s largest insurance market, to complement our Bermuda, London and other global operations.”
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