NU Online News Service, Feb. 3, 2:18 p.m. EST
Validus Holdings, Ltd. says fourth-quarter net income available to shareholders fell over 73 percent to $27.3 million as insured losses from catastrophes continued to take their toll.
For the year, Pembroke, Bermuda-based Validus says net income available to shareholders was down 94.7 percent to $21.3 million.
Ed Noonan, Validus' chairman and chief executive officer, says, “Insured losses arising from natural catastrophes and manmade disasters were approximately $108 billion in 2011. This was the second-worst year on record after 2005, the year of our formation.”
He adds, “Despite these significant market losses, Validus was profitable in 2011, which continues our company's record of profitability in each year of our operations despite heavy insured-loss activity and financial-market turbulence over the period.”
The company's combined ratio climbed to 97.4 in the quarter, up from 67.7 a year ago, and rose to 99.4 for the year, up from 86.2 in 2010.
Favorable prior accident-year loss-reserve development helped prevent the combined ratio from creeping above 100 in both the fourth quarter and the year, shaving 8.8 points off of the fourth-quarter combined ratio and 8.7 points off of the combined ratio for the year.
Gross premiums written were up for both the quarter the year, rising to $278.3 million from $258.7 million in the fourth quarter and to $2.1 billion from $2 billion for the year.
Underwriting income, though, dropped to $12.8 million in the fourth quarter, down from $139.7 million in the 2010 fourth quarter. For the year, underwriting income fell to $11.8 million from $242.4 million.
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