Validus’ net income increases but combined ratio suffers

Validus Holdings has reported a significant increase in its net income for its second quarter financial results in 2016, period ending June 30.

Validus Holdings has reported net income of $95 million for the second quarter of 2016, compared to $65.8 million it reported for the same period of 2015.

The company said that the figures took net income for the second quarter of 2016 to $261.8 million, compared to the $239.2 million it made for the first of 2015.

Net operating income for the second quarter of 2016 was $54.9 million compared to the figure of $101.7 million for the second quarter of 2015. For the second quarter of 2016 net operating income was $172.3 million, down on the $238.6 million that the company made over the same period of 2015.

The combined ratio for the three months ending June 30 2016 was 89.9 percent, compared to a combined ratio of 81.0 percent for the three months ended June 30 2015.

Ed Noonan, chairman and chief executive officer of Validus, said: “Validus’ financial performance was excellent in light of meaningful loss activity during the quarter in classes of business squarely in the Validus wheelhouse.

Validus generated an 89.9 percent combined ratio and a 10.2 percent annualised return on average equity despite natural catastrophes in North America, Europe and Asia and international marine and energy losses.

“These results speak to our disciplined underwriting, leading edge analytics and robust risk management, all well-honed skills that are critical to our success in the current market environment.”