VALIDUS HOLDINGS LTD (VR, Financial) filed Quarterly Report for the period ended 2009-09-30.
Validus Holdings Ltd. through its principal operating subsidiary Validus Reinsurance Ltd. is a global provider of short-tail lines of reinsurance including property catastrophe property pro-rata and property per risk marine and energy and other specialty lines. Validus was formed in December following the significant natural catastrophes of 2005 with an experienced management team and an unencumbered capital base of approximately billion. Validus Holdings Ltd has a market cap of $1.91 billion; its shares were traded at around $24.98 with a P/E ratio of 10.3 and P/S ratio of 1.5. The dividend yield of Validus Holdings Ltd stocks is 3.2%.
For the nine months ended September 30, 2009, the property lines include $94.9 million related to current year losses and $41.0 million of favorable development relating to prior accident years. The favorable development is attributable to the reclassification of losses from onshore energy exposures during the 2007 California wildfires to the marine line and reduced loss estimates for Hurricane Ike, the June 2008 Midwest flood event and October 2007 Peruvian mining loss, as well as lower than expected claim development elsewhere. For the nine months ended September 30, 2009, Validus Res property lines incurred $11.9 million of losses attributable to windstorm Klaus, which represented 3.2 percentage points of the loss ratio. For the nine months ended September 30, 2008, Validus Res property lines incurred $120.3 million, $13.9 million and $10.2 million of losses attributable to Hurricane Ike, Hurricane Gustav and certain U.S. storm and flood loss events which represented 33.3, 3.9 and 2.8 percentage points of the loss ratio, respectively. In addition, Item 2 of the Companys Quarterly Report on Form 10-Q for the three months ended March 31, 2008 discloses $30.2 million of Validus Res property lines losses attributable to separately identified losses, which, for the nine months ended September 30, 2008, represented 9.2 percentage points of the loss ratio. Validus Re property line loss ratios, excluding prior year development and loss events identified above, for the nine months ended September 30, 2009 and 2008 were 22.2% and 18.7%, respectively.
For the nine months ended September 30, 2009, the marine lines include $45.1 million related to current year losses and $21.9 million of adverse development relating to prior accident years due primarily to the reclassification of losses from onshore energy exposures during the 2007 California wildfires from the property line and increased loss estimates for Hurricanes Ike and Gustav. For the nine months ended September 30, 2008, Validus Re marine lines incurred $36.8 million and $1.5 million of losses attributable to Hurricanes Ike and Gustav, which represented 49.0 and 2.0 percentage points of the loss ratio, respectively. Validus Re marine line loss ratios, excluding prior year development and loss events identified above, for the nine months ended September 30, 2009 and 2008 were 47.8% and 42.1%, respectively.
Talbot. Talbot losses and loss expenses for the nine months ended September 30, 2009 were $248.2 million compared to $255.9 million for the nine months ended September 30, 2008, a decrease of $7.7 million, or 3.0%. The loss ratio was 51.3% and 56.7% for the nine months ended September 30, 2009 and 2008, respectively. Favorable loss development on prior years totaled $29.2 million, primarily on the property lines of business. Favorable loss reserve development benefitted the segment loss ratio by 6.0 percentage points for the nine months ended September 30, 2009. For the nine months ended September 30, 2009, Talbot incurred $8.3 million of losses attributable to a commercial flight loss, which represented 1.7 percentage points of the segment loss ratio. For the nine months ended September 30, 2008, Talbot incurred $26.2 million and $6.7 million of losses attributable to Hurricanes Ike and Gustav, which represented 5.8 and 1.5 percentage points of the segment loss ratio, respectively. In addition, Item 2 of the Companys Quarterly Report on Form 10-Q for the three months ended March 31, 2008 discloses $11.3 million of losses attributable to separately identified losses, which, for the nine months ended September 30, 2008, represented 2.5 percentage points of the segment loss ratio. Details of loss ratios by line of business and calendar period are provided below.
For the nine months ended September 30, 2009, the marine lines include $125.1 million related to current year losses and $3.7 million of favorable development relating to prior accident years. For the nine months ended September 30, 2008, the marine lines incurred $10.5 million and $2.5 million of losses attributable to Hurricanes Ike and Gustav, which represented 5.3 and 1.3 percentage points of the loss ratio, respectively. Talbot marine line loss ratios, excluding prior year development and the loss events identified above, for the nine months ended September 30, 2009 and 2008 were 59.9% and 61.4%, respectively.
For the nine months ended September 30, 2009, the specialty lines include $103.8 million relating to current year losses and $6.0 million due to favorable development on prior accident years. For the nine months ended September 30, 2009, Talbot incurred $8.3 million of losses attributable to a commercial flight loss, which represents 4.7 percentage points of the loss ratio. For the nine months ended September 30, 2008, the specialty lines incurred $0.5 million and $0.5 million of losses attributable to Hurricanes Ike and Gustav, which represented 0.3 and 0.3 percentage points of the loss ratio, respectively. Talbot specialty lines loss ratios, excluding prior year development and the loss events identified above, for the nine months ended September 30, 2009 and 2008 were 53.9% and 46.8%, respectively.
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Validus Holdings Ltd. through its principal operating subsidiary Validus Reinsurance Ltd. is a global provider of short-tail lines of reinsurance including property catastrophe property pro-rata and property per risk marine and energy and other specialty lines. Validus was formed in December following the significant natural catastrophes of 2005 with an experienced management team and an unencumbered capital base of approximately billion. Validus Holdings Ltd has a market cap of $1.91 billion; its shares were traded at around $24.98 with a P/E ratio of 10.3 and P/S ratio of 1.5. The dividend yield of Validus Holdings Ltd stocks is 3.2%.
Highlight of Business Operations:
Validus Re. Validus Re losses and loss expenses for the nine months ended September 30, 2009 were $142.6 million compared to $324.7 million for the nine months ended September 30, 2008, a decrease of $182.1 million or 56.1%. Validus Re net paid losses for the nine months ended September 30, 2009 were $178.2 million compared to $81.5 million for the nine months ended September 30, 2008, an increase of $96.7 million, or 118.7%, primarily as a result of losses paid on Hurricane Ike. The loss ratio, defined as losses and loss expenses divided by net premiums earned, was 26.5% and 66.4% for the nine months ended September 30, 2009 and 2008, respectively. For the nine months ended September 30, 2009, Validus Re incurred $11.9 million and $2.7 million of losses attributable to windstorm Klaus and a commercial flight loss, respectively, which represent 2.2 and 0.5 percentage points of the loss ratio, respectively. For the nine months ended September 30, 2008, Validus Re incurred $157.2 million, $15.4 million and $10.2 million of losses attributable to Hurricane Ike, Hurricane Gustav and certain U.S. storm and flood loss events, which represented 32.1, 3.2 and 2.1 percentage points of the loss ratio, respectively. In addition, Item 2 of the Companys Quarterly Report on Form 10-Q for the three months ended March 31, 2008 discloses $30.2 million of Validus Re losses attributable to separately identified losses, which, for the nine months ended September 30, 2008, represented 6.8 percentage points of the loss ratio.For the nine months ended September 30, 2009, the property lines include $94.9 million related to current year losses and $41.0 million of favorable development relating to prior accident years. The favorable development is attributable to the reclassification of losses from onshore energy exposures during the 2007 California wildfires to the marine line and reduced loss estimates for Hurricane Ike, the June 2008 Midwest flood event and October 2007 Peruvian mining loss, as well as lower than expected claim development elsewhere. For the nine months ended September 30, 2009, Validus Res property lines incurred $11.9 million of losses attributable to windstorm Klaus, which represented 3.2 percentage points of the loss ratio. For the nine months ended September 30, 2008, Validus Res property lines incurred $120.3 million, $13.9 million and $10.2 million of losses attributable to Hurricane Ike, Hurricane Gustav and certain U.S. storm and flood loss events which represented 33.3, 3.9 and 2.8 percentage points of the loss ratio, respectively. In addition, Item 2 of the Companys Quarterly Report on Form 10-Q for the three months ended March 31, 2008 discloses $30.2 million of Validus Res property lines losses attributable to separately identified losses, which, for the nine months ended September 30, 2008, represented 9.2 percentage points of the loss ratio. Validus Re property line loss ratios, excluding prior year development and loss events identified above, for the nine months ended September 30, 2009 and 2008 were 22.2% and 18.7%, respectively.
For the nine months ended September 30, 2009, the marine lines include $45.1 million related to current year losses and $21.9 million of adverse development relating to prior accident years due primarily to the reclassification of losses from onshore energy exposures during the 2007 California wildfires from the property line and increased loss estimates for Hurricanes Ike and Gustav. For the nine months ended September 30, 2008, Validus Re marine lines incurred $36.8 million and $1.5 million of losses attributable to Hurricanes Ike and Gustav, which represented 49.0 and 2.0 percentage points of the loss ratio, respectively. Validus Re marine line loss ratios, excluding prior year development and loss events identified above, for the nine months ended September 30, 2009 and 2008 were 47.8% and 42.1%, respectively.
Talbot. Talbot losses and loss expenses for the nine months ended September 30, 2009 were $248.2 million compared to $255.9 million for the nine months ended September 30, 2008, a decrease of $7.7 million, or 3.0%. The loss ratio was 51.3% and 56.7% for the nine months ended September 30, 2009 and 2008, respectively. Favorable loss development on prior years totaled $29.2 million, primarily on the property lines of business. Favorable loss reserve development benefitted the segment loss ratio by 6.0 percentage points for the nine months ended September 30, 2009. For the nine months ended September 30, 2009, Talbot incurred $8.3 million of losses attributable to a commercial flight loss, which represented 1.7 percentage points of the segment loss ratio. For the nine months ended September 30, 2008, Talbot incurred $26.2 million and $6.7 million of losses attributable to Hurricanes Ike and Gustav, which represented 5.8 and 1.5 percentage points of the segment loss ratio, respectively. In addition, Item 2 of the Companys Quarterly Report on Form 10-Q for the three months ended March 31, 2008 discloses $11.3 million of losses attributable to separately identified losses, which, for the nine months ended September 30, 2008, represented 2.5 percentage points of the segment loss ratio. Details of loss ratios by line of business and calendar period are provided below.
For the nine months ended September 30, 2009, the marine lines include $125.1 million related to current year losses and $3.7 million of favorable development relating to prior accident years. For the nine months ended September 30, 2008, the marine lines incurred $10.5 million and $2.5 million of losses attributable to Hurricanes Ike and Gustav, which represented 5.3 and 1.3 percentage points of the loss ratio, respectively. Talbot marine line loss ratios, excluding prior year development and the loss events identified above, for the nine months ended September 30, 2009 and 2008 were 59.9% and 61.4%, respectively.
For the nine months ended September 30, 2009, the specialty lines include $103.8 million relating to current year losses and $6.0 million due to favorable development on prior accident years. For the nine months ended September 30, 2009, Talbot incurred $8.3 million of losses attributable to a commercial flight loss, which represents 4.7 percentage points of the loss ratio. For the nine months ended September 30, 2008, the specialty lines incurred $0.5 million and $0.5 million of losses attributable to Hurricanes Ike and Gustav, which represented 0.3 and 0.3 percentage points of the loss ratio, respectively. Talbot specialty lines loss ratios, excluding prior year development and the loss events identified above, for the nine months ended September 30, 2009 and 2008 were 53.9% and 46.8%, respectively.
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