Validus’ profits dip; CEO remains positive
Validus Holdings’ profits dipped in the first quarter of 2014 compared with the same period last year. But its CEO remains positive despite increasing competition.
First-quarter profits reached $162.4 million or $1.66 per share, down from $223.2 million or $1.90 per share in the same period last year. Operating profits attributable to Validus were $146.1 million, or $1.49 a share, down from $215.6 million, or $1.83 a share in the prior-year period.
Gross written premiums decreased to $1,012 million compared with $1,104.8 million during the same period last year, a decrease of $92.8 million, or 8.4 percent.
Underwriting profits also fell 27.1 percent from the prior-year period to $153 million as the combined ratio weakened from 60.5 percent to 68.3 percent, a decrease of 8.2 percentage points.
Ed Noonan, chief executive officer and chairman, said: “Validus delivered very solid results for the first quarter of 2014. The Company had $162.4 million in net income, 4.6 percent growth in book value per diluted share inclusive of dividends and a 17.7 percent annualized return on average equity.
“While there is clearly competition in the (re)insurance industry, Validus' size, scale and our willingness to share analytical insights with our customers allows us to maintain a preferred position in the marketplace."
