Validus CEO calls 2016 a ‘strong year’ despite profit drop
Bermuda-based Validus Holdings reported a net income attributable to shareholders of $359.4 million for the 2016 full year compared to $374.9 million in the same period a year ago.
In the fourth quarter of 2016, net income available to shareholders dropped to $7.8 million from $69.0 million in the three months ended December 31, 2015.
Chairman and CEO Ed Noonan said: "Validus had another strong year in 2016. Despite the global insurance market growing more competitive, we were able to deliver an 84.2 percent combined ratio and grow our book value per diluted share (including dividends) by 9.5 percent. We continue to position the company well to weather the soft market while building the foundation to capitalize on better market conditions down the road."
The company operates reinsurance and insurance firms and investment advisors including Validus Re, Talbot Underwriting, Western World Insurance Group and AlphaCat Managers.
Total losses of Hurricane Matthew were $39.1 million, with Validus Re taking up the bulk of it with $13.6 million.
During the January 2017 renewal season, the Validus Re and AlphaCat segments underwrote $628.9 million in gross premiums written, an increase of 3.0 percent from the January 2016 renewal period.
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