Validus post $124 million first quarter profit

Bermuda reinsurer Validus has announced a net income of £124 million for the first quarter of 2012.

Validus Holding’s chairman and chief executive, Ed Noonan, said that he was pleased with the result, despite the firm absorbing what he described as ‘meaningful’ catastrophe losses.

“The net effect of the Costa Concordia loss, after the impact of reinstatement premiums was $63.1 million, which was within our pre-announced range of $50 million to $65 million,” he said.

“The total effect of notable losses after reinstatement premiums was $84.5 million in the first quarter of 2012, as compared to $271.1 million for the first quarter of 2011. Validus continues to expand and leverage our core capabilities as evidenced by the announcement of the capitalization of PaCRe, Ltd. and continued development of AlphaCat. We have also received interest in, and are considering opportunities to, raise additional capital for one or more of our AlphaCat funds or managed accounts.

“These additional facilities allow Validus to better serve our customers, intermediaries and ultimately our shareholders through the growth of our business. With the January 1 and April 1 renewals behind us, we have plenty of capacity available for opportunities through the remainder of the year.”