Validus reports Q1 loss as it is acquired by AIG

Bermuda-based Validus Holdings reported a net loss of $4.1 million for the first quarter of 2018 after a net income of $94.6 million in the same period of 2017.

The company’s results were impacted by lower underwriting income from the reinsurance segment and a loss in investment returns.

The underwriting income in the reinsurance segment fell to $41.4 million in the first quarter of 2018 from $84.6 million in the same period a year ago. The combined ratio in the reinsurance segment jumped to 81.6 percent in the first quarter of 2018 from 63.5 percent a year earlier.

Validus’ total managed investment return was a loss of $2.8 million after a gain of $52.8 million in the first three months of 2017.

Validus has entered into a definitive agreement and plan of merger with American International Group (AIG). The merger is expected to close in mid-2018.

Overall, Validus reported a year-on-year rise in gross premiums written to $1.83 billion in the first three months of 2018 from $1.19 billion in the same period a year ago. The combined ratio deteriorated to 90.9 percent from 83.2 percent over the period. The loss ratio was 52.0 percent in the first three months of 2018 compared to 46.9 percent in the same period a year ago.