Lightspring / Shutterstock.com
Validus appears to be back on track after it saw a significant jump in its net profits in the second quarter of 2014, in spite of competitive pressures in the market and higher than expected loss events.
The company’s net income hit $153.4 million for the quarter, a 400 percent increase compared with $30.7 million for the three months ended June 30th, 2013.
Over the six months ended June 30th, 2014, net income was $315.8 million, compared with $254 million for the six months ended June 30th, 2013.
The re/insurer reported gross premiums written for second quarter of $655.7 million compared to $702.3 million for the prior year quarter, a decrease of $46.6 million, or 6.6 percent.
Its net premiums written increased to $605.1 million for the quarter, compared with $581 million for the same quarter in the previous year.
Validus’ combined ratio for the quarter was 68.6 percent, a decrease of nearly 10 percentage points from 78.5 percent in the second quarter of 2013.
Ed Noonan, chairman and CEO, says: "Validus reported another solid quarter delivering $153.4 million of net income and a 16.5 percent annualised return on average equity. Strong underwriting and good diversification between insurance and reinsurance continued to drive our results as Validus posted an overall combined ratio of 68.6 percent. Despite competitive pressures in the marketplace and more loss activity than the market may have appreciated; all three of our segments - Validus Re, Talbot and AlphaCat - performed well.”
Noonan continues: “Earlier in the quarter Validus announced an important strategic development, an agreement to acquire Western World Insurance Group. Western World is a leader in the US excess and surplus lines market and adds a key pillar to our existing global platform for the distribution of short tail insurance and reinsurance."
Validus, Q2 results, Ed Noonan