Insurer hit by financial crisis and storm losses.
Validus Holdings has reported a net loss for the quarter ended September 30, 2008 of $126.3 million, or $1.71 per diluted common share, compared with net income of $136.5 million, or $1.90 per diluted common share, for the quarter ended September 30, 2007.
Ed Noonan, Chairman and Chief Executive Officer of Validus said: “As a result of the global financial crisis and large storm losses of the third quarter, we see 2009 as a very strong
year for the short tail classes which are Validus’ focus. The strength of our risk management and flexible global operating platform uniquely position Validus to capitalize on the improving market. Despite reporting our first ever quarterly loss, Validus has grown diluted book value per share plus accumulated dividends 8.1% over the past twelve months. Our performance versus peer companies continues to be top quartile.”
Net income for the nine months ended September 30, 2008 was $16.1 million, or $0.14 per diluted share, compared with $264.0 million, or $4.11 per diluted share, for the corresponding period in 2007.
Net operating loss for the third quarter of 2008 was $53.1 million, or $0.73 per diluted share, compared with net operating income of $127.9 million, or $1.78 per diluted common share, for the quarter ended September 30, 2007.
Operating income for the nine months ended September 30, 2008 was $124.1 million, or $1.53 per diluted share, compared with $256.8 million, or $4.00 per diluted common share, for the nine months ended September 30, 2007.
Net operating income, a non-GAAP financial measure, is defined as net income excluding net realized and unrealized gains or losses on investments, foreign exchange gains and losses and non-recurring items. Reconciliations of this measure to net income, the most directly comparable GAAP measure, are presented at the end of this release.
Operating results of Talbot have been included in the consolidated financial statements from the acquisition date of July 2, 2007. Further, the 2008 Validus data gives effect to the initial public offering which was consummated on July 30, 2007.
