Validus reports combined ratio deterioration in Q2

Validus Holdings' combined ratio deteriorated in the second quarter while net operating income halved.

The combined ratio for the three months ended June 30, 2016 was 89.9 percent, compared to a combined ratio of 81.0% for the three months ended June 30, 2015.

Net operating income available to Validus common shareholders was $54.9 million in the second quarter compared to $101.7 million in the same period a year ago.

Commenting on the financial results for the three months ended June 30, 2016, Validus' Chairman and chief executive officer Ed Noonan said: “Validus’ financial performance was excellent in light of meaningful loss activity during the quarter in classes of business squarely in the Validus wheelhouse. Validus generated an 89.9 percent combined ratio and a 10.2 percent annualized return on average equity despite natural catastrophes in North America, Europe and Asia and international marine and energy losses.

“These results speak to our disciplined underwriting, leading edge analytics and robust risk management, all well-honed skills that are critical to our success in the current market environment.”

Validus Holdings has reported net income of $95 million for the second quarter of 2016, compared to $65.8 million it reported for the same period of 2015.

Gross premiums written for the three months ended June 30, 2016 were $764.0 million compared to $726.2 million for the three months ended June 30, 2015.