Validus profits fall in 2014 despite strong Q4
Validus Holdings’ profits fell in 2014 despite a strong fourth quarter. Its overall result was hit by high third quarter losses in aviation war and energy lines.
The company’s profits decreased to $481.3 million in 2014 compared with $532.7 million a year earlier.
In the fourth quarter of 2014 its profits grew to $125.9 million, an increase of 32 percent compared with $95.3 million a year earlier. This was offset by losses in the third quarter when its profits fell to $39.7 million compared with $183.4 million in the third quarter of 2013 due to high losses in its aviation war and energy lines.
Validus’ gross written premiums (GWP) grew by 1.6 percent to $2.4 billion in 2014.
Validus Re, the company’s reinsurance segment, posted a drop in GWP to $1.1 billion for 2014, compared with $1.2 billion for 2013.
Its combined ratio deteriorated slightly to 73.7 percent for 2014, compared with 71.2 percent in 2013.
During the January 2015 renewal season, the Validus Re and AlphaCat segments underwrote $540.9 million in GWP, a decrease of 6 percent from the prior year renewal period.
Ed Noonan, chairman and chief executive officer, said: “During 2014, Validus delivered an impressive 13.2 percent operating return on average equity and 12.8 percent growth in book value per diluted share inclusive of dividends.
“We also completed an important strategic objective by acquiring Western World Insurance Group, a leading specialty lines insurance company. The addition of Western World provides Validus with a top notch underwriting and distribution platform in the United States, the world’s largest insurance market, to complement our Bermuda, London and other global operations.”
