AM Best affirms Validus Re ratings
Validus Holdings has stated that its first quarter 2018 company’s results were impacted by lower underwriting income from the reinsurance segment and a loss in investment returns, leading to a net loss of $4.1 million for the period.
This is down substantially from the net income of $94.6 million it reported for the same period of 2017.
Underwriting income in the reinsurance segment fell from $84.6 million in the first quarter of 2017 to $41.4 million in the same period of 2018. The combined ratio in the reinsurance segment jumped to 81.6 percent in the first quarter of 2018 from 63.5 percent a year earlier.
Validus’ total managed investment return saw a loss of $2.8 million after a gain of $52.8 million in the first three months of 2017.
Validus has entered into a definitive agreement and plan of merger with American International Group (AIG). The merger is expected to close in mid-2018.
In addition Validus reported a year-on-year rise in gross premiums written to $1.83 billion in the first three months of 2018 from $1.19 billion in the same period a year ago. The combined ratio rose to 90.9 percent from 83.2 percent over the period. The loss ratio was 52.0 percent in the first three months of 2018 compared to 46.9 percent in the same period a year ago.
Validus, results, Q1 2018, loss, underwriting