Validus sees Q3 profits plunge
Validus Holdings has announced a net loss of $250.4 million for the third quarter of 2017, a severe fall from the $89.8 million profit it made over the same period of 2016.
According to Validus, the results included notable losses of $926.2 million in the quarter compared to $1.0 million for the same period of 2016.
“While results of operations were negative, I am gratified with this outcome which is the result of world-class underwriting, risk, financial and operational management throughout our global businesses,” said Ed Noonan, CEO.
“Despite significant natural catastrophes we close the quarter with a very strong balance sheet and a belief that the quarter’s results across the industry have enhanced our competitive position.”
Validus reported a loss ratio for the period of 173.5 percent compared to 45.8 percent in the same period of 2017. It added that the combined ratio for the third quarter was 200.5 percent compared to 82.4 percent in the same period of 2016.
Excluding the AlphaCat segment, which includes results attributable to AlphaCat’s third-party investors and noncontrolling interests, the combined ratio for the three months ended September 30, 2017, was 138.8 percent.
Gross premiums written over the third quarter were up 40.7 percent year on year at $523.9 million in the third quarter. According to the company growth was primarily driven by increases in the Western World, Validus Re and AlphaCat segments.
Reinsurance premiums ceded for the quarter were up 159.7 percent year on year at $116.9 million in the third quarter. The increase was primarily driven by a rise in the Western World, Validus Re and Talbot segments.