Validus Profits Soar from $53 to $897 Million
Validus Holdings Ltd today reported a profit of $897.4 million in 2009, a considerable raise over the $53.1 million profit the previous year.
The Bermuda-based reinsurer’s net income for the year ended December 31, 2009 was $897.4 million [$9.24 per diluted common share], compared with $53.1 million [$0.61 per diluted common share] for the year ended December 31, 2008.
Commenting on fourth quarter and full year 2009 results, Validus’ Chairman and Chief Executive Officer Ed Noonan stated
We completed the IPC amalgamation on September 4, 2009. As a consequence of this acquisition and of strong underlying financial results in our Validus Re and Talbot segments, we closed the quarter with total shareholders’ equity of $4.03 billion, total assets of $7.02 billion and total investments and cash of $5.78 billion.
Diluted book value per share rose to $29.68 at December 31, 2009, which when combined with our $0.20 quarterly dividend resulted in an increase in diluted book value per share plus dividends of 4.4% in the quarter. Total value creation for our shareholders in 2009 as measured by growth in diluted book value per share plus accumulated dividends for the year was 28.2%.
With almost 30 years of experience in the insurance and reinsurance industry, Mr. Noonan has been the Chief Executive Officer of the company since its formation. Forbes lists his total compensation in 2008 at just over $4.5 million.
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