Validus Re delivered strong growth in the first quarter of 2015, driving a solid set of results for Bermuda-based Validus.
Validus' profits increased to $173.4 million in the first quarter of 2015, compared with $162.4 million in the first quarter of 2014.
Its gross premiums written (GWP) increased by 10.6 percent to $1.1 billion in the first quarter of 2015, compared with $1 million in the first quarter of 2014.
This was mainly driven by 6.8 percent growth in GWP at Validus Re, the company’s reinsurance segment, to $711.2 million in the quarter, compared with $666.2 million in the first quarter of 2014. A key driver of the growth was Validus Re’s specialty lines which experienced increased agricultural business written during the quarter.
Its combined ratio deteriorated to 75.1 percent in the quarter, compared with 68.3 percent in the same period of the prior year. At Validus Re, the combined ratio for the three months ended March 31, 2015 was 74.9 percent, compared with 86.5 percent for the three months ended March 31, 2014.
Validus’ Talbot segment posted a decrease in GWP of 7.1 percent to $270.1 million in the first quarter of 2015, compared with $290.7 million in the same period of the prior year. This was driven by general rate declines and participation reductions on certain lines in the marine and property lines.
Ed Noonan, Validus’ chairman and chief executive officer, said: “I am very pleased with the company’s strong performance during the first quarter of 2015. Validus earned $173.4 million in net income, equal to a 19.1 percent annualised return on average equity, and had 4.9 percent growth in book value per diluted common share inclusive of dividends.
“As an underwriting company first and foremost, I applaud our underwriters for having the discipline to reduce exposure where the pricing was insufficient for the risk. Validus’ goal is to remain a preferred partner for our customers and intermediaries over the long haul, and that starts with maintaining the integrity of our underwriting. In challenging market conditions, that’s what disciplined underwriting companies do.”
Validus, Validus Re, Talbot, Bermuda, First Quarter 2015 Results, Ed Noonan