Validus Q3 2014 Net Income: $39.7 Million
Bermuda-based Validus Holdings, Ltd. reported net income available to Validus of $39.7 million, or $0.41 per diluted common share, for the three months ended September 30, 2014, compared to $183.4 million, or $1.77 per diluted common share, for the three months ended September 30, 2013.
Net income available to Validus was $355.4 million, or $3.70 per diluted common share, for the nine months ended September 30, 2014, compared to $437.3 million, or $3.99 per diluted common share, for the nine months ended September 30, 2013.
Net operating income available to Validus was $77.3 million, or $0.82 per diluted common share, for the three months ended September 30, 2014, compared to $155.2 million, or $1.50 per diluted common share, for the three months ended September 30, 2013.
Net operating income available to Validus was $356.0 million, or $3.71 per diluted common share, for the nine months ended September 30, 2014, compared to $482.3 million, or $4.41 per diluted common share, for the nine months ended September 30, 2013. Book value per diluted common share stands at $38.70, reflecting quarterly growth of 1.2% inclusive of dividends.
Commenting on the financial results for the three months ended September 30, 2014, Validus’ Chairman and CEO Ed Noonan stated, “Validus’ results for the quarter were impacted by $61.4 million of losses concentrated in the classes of aviation war and energy.
“Despite these losses, the company still generated $92.1 million in underwriting income, $77.3 million in net operating income and an 8.3% annualized operating return on average equity. Validus takes on volatile business as we get paid more for assuming the risk.
“By definition this means that our results will sometimes be lumpy, but I’d rather have a lumpy high return on equity than a lower consistent one. Our thoughtful underwriting of these classes of business is what has allowed Validus to create strong growth in book value since the company’s formation.”
