Validus 8-K Second Earnings Report Since Initial Public Offering; First Quarter With Consolidation of Talbot

Exhibit 99.3

Validus Holdings, Ltd.
Investor Financial Supplement — Third Quarter 2007

November 5, 2007

Validus Reinsurance, Ltd.
19 Par-la-ville Road
Hamilton, HM 11 Bermuda
Telephone: (441) 278-9000
Facsimile: (441) 278-9090
Website: www.validusre.bm
Mailing Address: Suite 1790 48 Par-la-ville Road
Hamilton, HM 11 Bermuda

Page 1

Validus Holdings, Ltd.
Table of Contents

Section	Page
Table of Contents		2
Explanatory Notes		3
Consolidated Financial Highlights		4
Summary Consolidated Balance Sheets		5
Computation of Book Value per Common Share and Diluted Book Value per Common Share		6
Consolidated Statements of Operations and Comprehensive Income (Loss)		7
Consolidated Statements of Operations — Underwriting Income Format		8
Computation of Earnings Per Share Data		9
Dilutive Shares for Earnings Per Share Calculation		10
Consolidated Segment Income Data for Quarter		11
Consolidated Segment Income Data for Year to Date		12
Underwriting Results by Class of Business — Three months ended September 30 - Validus Re		13
Underwriting Results by Class of Business — Three Months Ended September 30, 2007 - Talbot		14
Underwriting Results by Class of Business — Nine months ended September 30 - Validus Re		15
Underwriting Results by Class of Business — Nine months ended September 30, 2007 - Talbot		16
Line of Business Treaty Type Detail (Gross Premium Written) — Validus Re		17
Consolidated Line of Business Policy Type Detail (Gross Premium Written)		18
Consolidated Analysis of Reserves for Losses and Loss Expenses		19
Consolidated Losses and Loss Ratios by Segment		20
Losses and Loss Ratios by Class — Validus Re		21
Losses and Loss Ratios by Class — Talbot		22
Consolidated Reinsurance Recoverable Analysis		23
Consolidated Investment Portfolio Composition and Net Investment Income		24
Consolidated Fixed Maturity Portfolio Credit Quality and Maturity Profile		25
Capitalization		26

Page 2

Validus Holdings, Ltd.
Explanatory Notes

Basis of Presentation

• All financial information contained herein is unaudited, however, certain information contained herein relating to the years ended December 31, 2006 and 2005 is derived from or agrees to audited financial information.

• Unless otherwise noted, dollar amounts are in thousands of US dollars, except for share and per share amounts and ratio information.

• Certain amounts in prior periods have been reclassified to conform to current period presentation. These reclassifications include the inclusion of share based compensation expense in general and administrative expenses and the corresponding expense ratios, and the combination of fees relating to our credit facility (previously included in general and administrative expenses) with interest expense to comprise finance fees. In addition, Aerospace, Life and A&H, Terrorism, Workers’ Compensation lines of business have been combined into one reporting line, ‘Specialty’.

• A reverse stock split of the outstanding shares of Validus Holdings, Ltd., was approved by a vote by the shareholders, effective immediately following resolution at the Company’s Annual General Meeting on March 1, 2007, whereby each 1.75 outstanding shares was consolidated into 1 share, and the par value of the Company’s shares was increased to US $0.175 per share. This share consolidation has been reflected retroactively in this financial supplement.

• On July 30, 2007, Validus completed its initial public offering. The net proceeds to the Company from this Offering were approximately $319,935, after deducting the underwriters’ discount and fees and expenses of the Offering.

• The Company entered into an advisory agreement on December 7, 2005 with Aquiline for the provision of advisory and consulting services in relation to the affairs of the Company. Under the terms of this agreement, the Company pays an annual advisory fee of $1,000 payable in advance for a period of five years from the date of initial funding until the termination date. As outlined in the agreement, the Advisory Agreement was terminated with the first public offering and the Company paid in full to Aquiline the remaining unpaid advisory fees of $3,000.

• “NA” = Not applicable

• “NM” = Not meaningful

• On July 2, 2007, Validus announced it completed its acquisition of Talbot Holdings Ltd. (“Talbot”). Operating results of Talbot have been included in the consolidated financial statements from the acquisition date of July 2, 2007. The Validus data for 2006 and first six months of 2007 refer only to the company prior to its acquisition of Talbot.

Financial Measures

In presenting our results, we include certain financial measures which are important for an understanding of our overall results of operations. We believe that these measures are important to investors and other interested parties, and that such persons benefit from having a consistent basis for comparison with other companies within the industry. However, these measures may not be comparable to similarly titled measures used by companies either inside or outside of the insurance industry.

• Diluted book value per share is calculated based on total shareholders’ equity plus the assumed proceeds from the exercise of outstanding options and warrants, divided by the sum of shares, options, warrants and share equivalents outstanding (assuming their exercise).

• Net operating income is calculated based on net income (loss) excluding net realized gains (losses), net unrealized gains (losses) on investments, gains (losses) arising from translation of non-US$ denominated balances and non-recurring items. Net operating income is the most directly comparable GAAP measure as it focuses on the underlying fundamentals of our operations without the influence of realized gains (losses) from the sale of investments, translation of non-US$ currencies and non-recurring items. In the third quarter of 2007, Validus incurred a $3,000 non-recurring expense to terminate an advisory agreement with its founding investor in conjunction with its IPO. In the third quarter of 2007, Validus further incurred a $2,893 non-recurring expense arising from the issuance of additional warrants pursuant to the anti-dilution provisions of the warrants triggered by the Talbot acquisition. Realized gains (losses) from the sale of investments are driven by the timing of the disposition of investments, not by our operating performance. Gains (losses) arising from translation of non-US$ denominated balances are unrelated to our underlying business.

• Underwriting income (loss) is a measure of profitability that takes into account net premiums earned and other insurance related income as revenue and net loss and loss expenses, acquisition costs and underwriting related general and administrative expenses as expenses. Underwriting income (loss) is the difference between revenues and expense items.

• Annualized effective investment yield is calculated by dividing the investment income generated from invested assets and other investments by the average balance of the assets managed by our portfolio managers and our other investments.

Page 3

Validus Holdings, Ltd.
Consolidated Financial Highlights
(US Dollars in thousands, except share and per share information)

		At or for the															At or for the						At or for the
		three months ended															nine months ended						year ended
		September 30,			June 30,			March 31,			December 31,			September 30,			September 30,			September 30,			December 31,
		2007			2007			2007			2006			2006			2007			2006			2006
Highlights	Net income	$	136,525		$	70,754		$	56,748		$	69,052		$	69,676		$	264,027		$	114,045		$	183,097
	Net operating income (a)		127,909			75,172			53,670			68,164			69,461			256,751			113,955			182,119
	Gross premiums written		245,271			174,300			378,070			65,505			116,505			797,641			475,284			540,789
	Net premiums earned		295,526			133,030			111,492			105,153			92,498			540,048			201,361			306,514
	Total assets		4,126,602			2,364,911			2,012,485			1,646,423			1,624,890			4,126,602			1,624,890			1,646,423
	Total shareholders’ equity		1,789,360			1,323,947			1,251,216			1,192,523			1,121,707			1,789,360			1,121,707			1,192,523
Per share data	Earnings per basic share
	Net income (loss)	$	1.98		$	1.21		$	0.97		$	1.18		$	1.19		$	4.26		$	1.95		$	3.13
	Net operating income (loss)		1.85			1.29			0.92			1.17			1.19			4.14			1.95			3.11
	Earnings per diluted share
	Net income (loss)	$	1.90		$	1.17		$	0.94		$	1.16		$	1.19		$	4.11		$	1.95		$	3.11
	Net operating income (loss)		1.78			1.24			0.89			1.14			1.18			4.00			1.95			3.09
	Book value per share
	Reported	$	24.12		$	22.64		$	21.39		$	20.39		$	19.18		$	24.12		$	19.18		$	20.39
	With investments at amortized cost		24.06			22.70			21.35			20.38			19.16			24.06			19.16			20.38
	Diluted book value per share (b)
	Reported	$	22.37		$	21.59		$	20.56		$	19.73		$	18.72		$	22.37		$	18.72		$	19.73
	With investments at amortized cost		22.32			21.64			20.52			19.71			18.70		$	22.32		$	18.70			19.71
Financial ratios	Losses and loss expenses ratio		29.5	%		32.1	%		41.7	%		23.1	%		12.5	%		32.7	%		33.3	%		29.8	%
	Policy acquisition costs ratio		17.2	%		13.4	%		11.0	%		10.9	%		11.5	%		15.0	%		12.2	%		11.8	%
	General and administrative expenses ratio		16.2	%		9.8	%		11.8	%		14.5	%		14.7	%		13.7	%		15.4	%		15.1	%
	Expense ratio		33.4	%		23.2	%		22.8	%		25.4	%		26.2	%		28.7	%		27.6	%		26.9	%
	Combined ratio		63.0	%		55.3	%		64.5	%		48.5	%		38.8	%		61.4	%		60.9	%		56.7	%
	Annualized return on average equity (c)		35.1	%		22.0	%		18.6	%		23.9	%		25.8	%		25.3	%		14.6	%		17.0	%
	Annualized operating return on average equity (d)		32.9	%		23.4	%		17.6	%		23.6	%		25.7	%		24.6	%		14.5	%		17.0	%

Notes:

(a)	Net operating income is calculated based on net income (loss) excluding net realized gains (losses), net unrealized gains (losses), gains (losses) arising from translation of non-US$ denominated balances and excluding the fair value of warrants issued and the termination fee paid to Aquiline under the Advisory Agreement. This measure focuses on the underlying fundamentals of our operations without the influence of realized gains (losses) from the sale of investments, translation of non-US$ currencies and non-recurring items. Realized gains (losses) from the sale of investments are driven by the timing of the disposition of investments, not by our operating performance. Gains (losses) arising from translation of non-US$ denominated balances are unrelated to our underlying business.
(b)	Diluted book value per share is calculated based on total shareholders’ equity plus the assumed proceeds from the exercise of outstanding options and warrants, divided by the sum of shares, options, warrants and share equivalents outstanding (assuming their exercise).
(c)	Annualized return on average equity is calculated by dividing the net income for the period by the average shareholders’ equity during the period. Average shareholders’ equity is the average of the beginning, ending and intervening quarter end shareholders’ equity balances.
(d)	Annualized operating return on average equity is calculated by dividing the operating income for the period by the average shareholders’ equity during the period. Average shareholders’ equity is the average of the beginning, ending and intervening quarter end shareholders’ equity balances.

Page 4

Validus Holdings, Ltd.
Summary Consolidated Balance Sheets
(US Dollars in thousands, except share and per share information)

	September 30,			June 30,		March 31,		December 31,		September 30,
	2007			2007		2007		2006		2006
Assets
Fixed maturities, at fair value	$	1,772,121		$	1,127,591	$	1,089,167	$	844,857	$	831,730
Short-term investments, at fair value		580,765			371,767		350,136		531,530		447,884
Cash and cash equivalents		651,428			314,955		88,317		63,643		87,457
Total investments and cash		3,004,314			1,814,313		1,527,620		1,440,030		1,367,071
Premiums receivable		505,001			376,814		356,294		142,408		177,634
Deferred acquisition costs		122,572			72,518		66,694		28,203		30,611
Prepaid reinsurance premiums		59,623			40,747		27,064		8,245		34,300
Securities lending collateral		60,018			35,194		16,258		12,327		—
Loss reserves recoverable		165,115			158		450		—		1,936
Recoverables on paid losses		8,174			—		—		—		—
Net receivable for investments sold		—			1,862		—		—		—
Taxes recoverable		6,283			—		—		—		—
Goodwill and other intangible assets		152,812			—		—		—		—
Accrued investment income		15,476			9,355		7,683		6,456		5,572
Other assets		27,214			13,950		10,422		8,754		7,766
Total assets	$	4,126,602		$	2,364,911	$	2,012,485	$	1,646,423	$	1,624,890
Liabilities
Reserve for losses and loss expense	$	924,531		$	138,132	$	111,555	$	77,363	$	63,211
Unearned premiums		727,293			461,437		433,263		178,824		244,172
Reinsurance balances payable		56,553			45,927		25,708		7,438		22,298
Securities lending payable		60,018			35,194		16,258		12,327		—
Deferred taxation		20,260			—		—		—		—
Net payable for investments purchased		88,072			—		17,209		12,850		12,944
Accounts payable and accrued expenses		110,515			10,274		7,276		15,098		10,558
Debentures payable		350,000			350,000		150,000		150,000		150,000
Total liabilities		2,337,242			1,040,964		761,269		453,900		503,183
Shareholders’ equity
Ordinary shares	$	12,985		$	10,234	$	10,234	$	10,234	$	10,234
Additional paid-in capital		1,378,724			1,051,947		1,049,970		1,048,025		1,045,947
Accumulated other comprehensive (loss) income		(640	)		—		—		875		1,189
Retained earnings		398,291			261,766		191,012		133,389		64,337
Total shareholders’ equity		1,789,360			1,323,947		1,251,216		1,192,523		1,121,707
Total liabilities and shareholders’ equity	$	4,126,602		$	2,364,911	$	2,012,485	$	1,646,423	$	1,624,890
Book value per common share	$	24.12		$	22.64	$	21.39	$	20.39	$	19.18
Diluted book value per common share	$	22.37		$	21.59	$	20.56	$	19.73	$	18.72

Page 5

Validus Holdings, Ltd.
Computation of Book Value per Common Share and Diluted Book Value per Common Share
(US Dollars in thousands, except share and per share information)

	At September 30, 2007									At December 31, 2006
								Book									Book
	Equity					Exercise		Value per		Equity					Exercise		Value per
	Amount			Shares		Price (a)		Share		Amount			Shares		Price (a)		Share
Book Value per Common Share, Reported
Book Value per Common Share
Total shareholders’ equity	$	1,789,360			74,199,837			$	24.12	$	1,192,523			58,482,601			$	20.39
Diluted Book Value per Common Share
Total shareholders’ equity	$	1,789,360			74,199,837		—			$	1,192,523			58,482,601		—
Assumed exercise of outstanding warrants (b)		152,868			8,711,729	$	17.55				147,968			8,455,320	$	17.50
Assumed exercise of outstanding stock options (b)		49,196			2,761,176	$	17.82				45,046			2,568,894	$	17.54
Unvested restricted shares		—			3,367,961		—				—			733,964		—
Diluted book value per common share	$	1,991,424			89,040,703			$	22.37	$	1,385,537			70,240,779			$	19.73
Book Value per Common Share, with Investments at Amortized Cost
Book Value per Common Share
Total shareholders’ equity	$	1,789,360								$	1,192,523
Unrealized (gain) loss on investments		(4,011	)								(875	)
Total shareholders’ equity, as adjusted	$	1,785,349			74,199,837			$	24.06	$	1,191,648			58,482,601			$	20.38
Diluted Book Value per Common Share
Total shareholders’ equity	$	1,785,349			74,199,837		—			$	1,191,648			58,482,601		—
Assumed exercise of outstanding warrants (b)		152,868			8,711,729	$	17.55				147,968			8,455,320	$	17.50
Assumed exercise of outstanding stock options (b)		49,196			2,761,176	$	17.82				45,046			2,568,894	$	17.54
Unvested restricted shares		—			3,367,961		—				—			733,964		—
Diluted book value per common share, as adjusted	$	1,987,413			89,040,703			$	22.32	$	1,384,662			70,240,779			$	19.71

Notes:

(a)	Weighted average exercise price for those warrants and stock options which have exercise price lower than book value per share.
(b)	Using the “as-if-converted” method, assuming all proceeds received upon exercise of warrants and stock options will be retained by the Company and the resulting common shares from exercise remain outstanding.

Page 6

Validus Holdings, Ltd.
Consolidated Statements of Operations and Comprehensive Income (Loss)
(US Dollars in thousands, except share and per share information)

	Three Months Ended															Nine Months Ended
	September 30,			June 30,			March 31,			December 31,			September 30,			September 30,			September 30,
	2007			2007			2007			2006			2006			2007			2006
Revenues
Gross premiums written	$	245,271		$	174,300		$	378,070		$	65,505		$	116,505		$	797,641		$	475,284
Reinsurance premiums ceded		(7,906	)		(26,780	)		(30,958	)		355			(38,892	)		(65,644	)		(64,051	)
Net premiums written		237,365			147,520			347,112			65,860			77,613			731,997			411,233
Change in unearned premiums		58,161			(14,490	)		(235,620	)		39,293			14,885			(191,949	)		(209,872	)
Net premiums earned		295,526			133,030			111,492			105,153			92,498			540,048			201,361
Net investment income		36,560			19,742			18,497			17,652			16,272			74,799			40,370
Net realized (losses) gains on investments		1,010			(232	)		46			(208	)		(154	)		823			(894	)
Net unrealized gains on investments		7,681			(6,189	)		1,643			—			—			3,136			—
Other income		1,330			—			—			—			—			1,330			—
Foreign exchange gains		5,818			2,003			1,389			1,096			369			9,210			1,061
Total revenues		347,925			148,354			133,067			123,693			108,985			629,346			241,898
Expenses
Losses and loss expense		87,263			42,675			46,487			24,265			11,577			176,426			67,058
Policy acquisition costs		50,945			17,837			12,219			11,498			10,638			81,000			24,575
General and administrative expenses		44,793			11,107			11,227			13,002			11,736			67,088			25,350
Share compensation expense		6,132			1,978			1,945			2,223			1,905			10,054			5,657
Finance expenses		17,886			4,003			4,441			3,653			3,453			26,331			5,136
Fair value of warrants issued		2,893			—			—			—			—			2,893			77
Total expenses		209,912			77,600			76,319			54,641			39,309			363,792			127,853
Net income before taxes		138,013			70,754			56,748			69,052			69,676			265,554			114,045
Taxes		1,488			—			—			—			—			1,527			—
Net income	$	136,525		$	70,754		$	56,748		$	69,052		$	69,676		$	264,027		$	114,045
Comprehensive income
Unrealized gains (losses) arising during period		—			—			—			(522	)		7,353			—			190
Foreign currency translation adjustments		(640	)		—			—						—			(640	)		—
Adjustment for reclassification of (losses) realized in income		—			—			—			208			154			—			894
Comprehensive income	$	135,885		$	70,754		$	56,748		$	68,738		$	77,183		$	263,387		$	115,129
Earnings per share
Weighted average number of common shares and share equivalents outstanding:
Basic		69,107,336			58,482,600			58,482,601			58,482,601			58,482,601			62,024,179			58,475,306
Diluted		71,868,835			60,647,354			60,215,392			59,745,784			58,651,163			64,243,860			58,584,161
Basic earnings per share	$	1.98		$	1.21		$	0.97		$	1.18		$	1.19		$	4.26		$	1.95
Diluted earnings per share	$	1.90		$	1.17		$	0.94		$	1.16		$	1.19		$	4.11		$	1.95

Page 7

Validus Holdings, Ltd.
Consolidated Statements of Operations — Underwriting Income Format
(US Dollars in thousands, except share and per share information)

	Three Months Ended															Nine Months Ended
	September 30,			June 30,			March 31,			December 31,			September 30,			September 30,			September 30,
	2007			2007			2007			2006			2006			2007			2006
Gross premiums written	$	245,271		$	174,300		$	378,070		$	65,505		$	116,505		$	797,641		$	475,284
Reinsurance premiums ceded		(7,906	)		(26,780	)		(30,958	)		355			(38,892	)		(65,644	)		(64,051	)
Net premiums written		237,365			147,520			347,112			65,860			77,613			731,997			411,233
Change in unearned premiums		58,161			(14,490	)		(235,620	)		39,293			14,885			(191,949	)		(209,872	)
Net premiums earned		295,526			133,030			111,492			105,153			92,498			540,048			201,361
Losses and loss expenses		87,263			42,675			46,487			24,265			11,577			176,426			67,058
Policy acquisition costs		50,945			17,837			12,219			11,498			10,638			81,000			24,575
General and administrative expenses		41,793			11,107			11,227			13,002			11,736			64,088			25,350
Share compensation expense		6,132			1,978			1,945			2,223			1,905			10,054			5,657
Total underwriting deductions		186,133			73,597			71,878			50,988			35,856			331,568			122,640
Underwriting income		109,393			59,433			39,614			54,165			56,642			208,480			78,721
Net investment income		36,560			19,742			18,497			17,652			16,272			74,799			40,370
Other income		1,330			—			—			—			—			1,330			—
Finance expenses		(17,886	)		(4,003	)		(4,441	)		(3,653	)		(3,453	)		(26,331	)		(5,136	)
Operating income before tax		129,397			75,172			53,670			68,164			69,461			258,278			113,955
Taxes		1,488			—			—			—			—			1,527			—
Net operating income	$	127,909		$	75,172		$	53,670		$	68,164		$	69,461		$	256,751		$	113,955
Net realized (losses) gains on investments		1,010			(232	)		46			(208	)		(154	)		823			(894	)
Net unrealized gains (losses) on investments		7,681			(6,189	)		1,643			—			—			3,136			—
Foreign exchange gains		5,818			2,003			1,389			1,096			369			9,210			1,061
Fair value of warrants issued		(2,893	)		—			—			—			—			(2,893	)		(77	)
Aquiline termination fee		(3,000	)		—			—			—			—			(3,000	)		—
Net income	$	136,525		$	70,754		$	56,748		$	69,052		$	69,676		$	264,027		$	114,045
Selected Ratios
Net premiums written/Gross premiums written		96.8	%		84.6	%		91.8	%		100.5	%		66.6	%		91.8	%		86.5	%
Losses and loss expenses		29.5	%		32.1	%		41.7	%		23.1	%		12.5	%		32.7	%		33.3	%
Policy acquisition costs		17.2	%		13.4	%		11.0	%		10.9	%		11.5	%		15.0	%		12.2	%
General and administrative expenses		16.2	%		9.8	%		11.8	%		14.5	%		14.7	%		13.7	%		15.4	%
Expense ratio		33.4	%		23.2	%		22.8	%		25.4	%		26.2	%		28.7	%		27.6	%
Combined ratio		63.0	%		55.3	%		64.5	%		48.5	%		38.8	%		61.4	%		60.9	%

Notes:

(a)

Net operating income is calculated based on net income (loss) excluding net realized gains (losses), net unrealized gains (losses), gains (losses) arising from translation of non-US$ denominated balance the fair value of warrants issued and excluding the Aquiline termination fee. This measure focuses on the underlying fundamentals of our operations without the influence of realized gains (losses) from the sale of investments, translation of non-US$ currencies and non-recurring items. Realized gains (losses) from the sale of investments are driven by the timing of the disposition of investments, not by our operating performance. Gains (losses) arising from translation of non-US$ denominated balances are unrelated to our underlying business.

Page 8

Validus Holdings, Ltd.
Computation of Earnings Per Share Data
(US Dollars in thousands, except share and per share information)

	Three Months Ended
	September 30, 2007						September 30, 2006
	Net operating		Net		Comprehensive		Net operating		Net		Comprehensive
	income		income		income		income		income		income
Numerator	$	127,909	$	136,525	$	135,885	$	69,461	$	69,676	$	77,183
Basic EPS calculation:
Weighted average number of common shares outstanding:		69,107,336		69,107,336		69,107,336		58,482,601		58,482,601		58,482,601
Basic earnings per share	$	1.85	$	1.98	$	1.97	$	1.19	$	1.19	$	1.32
Diluted EPS calculation:
Weighted average number of common shares outstanding:		69,107,336		69,107,336		69,107,336		58,482,601		58,482,601		58,482,601
Share equivalents:
Warrants		2,058,548		2,058,548		2,058,548		—		—		—
Stock options		33,865		33,865		33,865		—		—		—
Unvested restricted shares		669,086		669,086		669,086		168,562		168,562		168,562
Weighted average number of diluted common shares outstanding:		71,868,835		71,868,835		71,868,835		58,651,163		58,651,163		58,651,163
Diluted earnings per share	$	1.78	$	1.90	$	1.89	$	1.18	$	1.19	$	1.32

	Nine Months Ended
	September 30, 2007						September 30, 2006
	Net operating		Net		Comprehensive		Net operating		Net		Comprehensive
	income		income		income		income		income		income
Numerator	$	256,751	$	264,027	$	263,387	$	113,955	$	114,045	$	115,129
Basic EPS calculation:
Weighted average number of common shares outstanding:		62,024,179		62,024,179		62,024,179		58,475,306		58,475,306		58,475,306
Basic earnings per share	$	4.14	$	4.26	$	4.25	$	1.95	$	1.95	$	1.97
Diluted EPS calculation:
Weighted average number of common shares outstanding:		62,024,179		62,024,179		62,024,179		58,475,306		58,475,306		58,475,306
Share equivalents:
Warrants		1,720,334		1,720,334		1,720,334		—		—		—
Stock options		11,288		11,288		11,288		—		—		—
Unvested restricted shares		488,059		488,059		488,059		108,855		108,855		108,855
Weighted average number of diluted common shares outstanding:		64,243,860		64,243,860		64,243,860		58,584,161		58,584,161		58,584,161
Diluted earnings per share	$	4.00	$	4.11	$	4.10	$	1.95	$	1.95	$	1.97

Notes:

SFAS No. 123 requires that any unrecognized stock based compensation expense that will be recorded in future periods be included as proceeds for purposes of treasury stock repurchases, which is applied against the unvested restricted shares balance

Page 9

Validus Holdings, Ltd.
Dilutive Shares for Earnings Per Share Calculation
(US Dollars in thousands, except share and per share information)

	Three months ended						Nine months ended
	September 30, 2007			September 30, 2006			September 30, 2007			September 30, 2006
Average fair value per share	$	23.01		$	17.50		$	21.97		$	17.50
Basic weighted average common shares outstanding		69,107,336			58,482,601			62,024,179			58,475,306
Add: weighted average unvested restricted shares		3,170,831			713,723			1,552,760			686,677
Proceeds from unrecognized restricted share expense	$	57,565		$	9,540		$	23,391		$	10,111,885
Less: restricted shares bought back via treasury method		(2,501,745	)		(545,161	)		(1,064,701	)		(577,822	)
Add: weighted average dilutive warrants outstanding		8,647,626			8,455,320			8,519,422			8,452,169
Weighted average exercise price per share	$	17.53		$	17.50		$	17.53		$	17.50
Less: warrants bought back via treasury method		(6,589,078	)		(8,455,320	)		(6,799,088	)		(8,452,169	)
Add: weighted average dilutive options outstanding		2,775,358			2,498,572			2,680,234			2,428,585
Weighted average exercise price per share	$	17.82		$	17.50		$	17.68		$	17.50
Proceeds from unrecognized option expense	$	15,515		$	15,889		$	14,697		$	15,554
Less: options bought back via treasury method		(2,741,493	)		(2,498,572	)		(2,668,946	)		(2,428,585	)
Weighted average dilutive shares outstanding		71,868,835			58,651,163			64,243,860			58,584,161

Page 10

Validus Holdings, Ltd.
Consolidated Segment Income Data for Quarter
(US Dollars in thousands, except share and per share information)

	Three Months Ended September 30, 2007												Three Months Ended September 30, 2006
	Validus Re			Talbot			Corporate			Total			Validus Re			Talbot			Corporate			Total
Gross premiums written	$	102,229		$	143,042		$	—		$	245,271		$	116,505		$	—		$	—		$	116,505
Reinsurance premiums ceded		(7,291	)		(615	)		—			(7,906	)		(38,892	)		—			—			(38,892	)
Net premiums written		94,938			142,427			—			237,365			77,613			—			—			77,613
Change in unearned premiums		57,055			1,106			—			58,161			14,885			—			—			14,885
Net premiums earned		151,993			143,533			—			295,526			92,498			—			—			92,498
Losses and loss expenses		38,131			49,132			—			87,263			11,577			—			—			11,577
Policy acquisition costs		18,161			32,784			—			50,945			10,638			—			—			10,638
General and administrative expenses		9,527			25,258			7,008			41,793			6,987			—			4,749			11,736
Share compensation expense		1,281			731			4,120			6,132			526			—			1,379			1,905
Total underwriting deductions		67,100			107,905			11,128			186,133			29,728			—			6,128			35,856
Underwriting income (loss)	$	84,893		$	35,628		$	(11,128	)	$	109,393		$	62,770		$	—		$	(6,128	)	$	56,642
Net investment income		22,706			13,360			494			36,560			16,271			—			1			16,272
Other income		—			1,330			—			1,330			—			—			—			—
Finance expenses		(174	)		(8,858	)		(8,854	)		(17,886	)		(8	)		—			(3,445	)		(3,453	)
Operating income (loss) before tax		107,425			41,460			(19,488	)		129,397			79,033			—			(9,572	)		69,461
Taxes		8			1,480			—			1,488			—			—			—			—
Net operating income (loss)	$	107,417		$	39,980		$	(19,488	)	$	127,909		$	79,033		$	—		$	(9,572	)	$	69,461
Net realized gains (losses) on investments		1,122			(112	)		—			1,010			(154	)		—			—			(154	)
Net unrealized (losses) gains on investments		5,881			1,800			—			7,681			—			—			—			—
Foreign exchange gains (losses)		4,372			1,446			—			5,818			369			—			—			369
Fair value of warrants issued		—			—			(2,893	)		(2,893	)		—			—			—			—
Aquiline termination fee		—			—			(3,000	)		(3,000	)		—			—			—			—
Net income (loss)	$	118,792		$	43,114		$	(25,381	)	$	136,525		$	79,248		$	—		$	(9,572	)	$	69,676
Selected Ratios
Net premiums written/Gross premiums written		92.9	%		99.6	%					96.8	%		66.6	%		0.0	%					66.6	%
Losses and loss expenses		25.1	%		34.2	%					29.5	%		12.5	%		0.0	%					12.5	%
Policy acquisition costs		11.9	%		22.8	%					17.2	%		11.5	%		0.0	%					11.5	%
General and administrative expenses		7.1	%		18.1	%					16.2	%		8.1	%		0.0	%					14.7	%
Expense ratio		19.1	%		40.9	%					33.5	%		19.6	%		0.0	%					26.2	%
Combined ratio		44.1	%		75.2	%					63.0	%		32.1	%		0.0	%					38.8	%

Notes:
(a)	Net operating income is calculated based on net income (loss) excluding net realized gains (losses), net unrealized gains (losses), gains (losses) arising from translation of non-US$ denominated balances, the fair value of warrants issued and excluding the Aquiline termination fee. This measure focuses on the underlying fundamentals of our operations without the influence of realized gains (losses) from the sale of investments, translation of non-US$ currencies and non-recurring items. Realized gains (losses) from the sale of investments are driven by the timing of the disposition of investments, not by our operating performance. Gains (losses) arising from translation of non-US$ denominated balances are unrelated to our underlying business.
(b)	Operating results of Talbot have been included from July 2, 2007, the date of acquisition.

Page 11

Validus Holdings, Ltd.
Consolidated Segment Income Data for Year to Date
(US Dollars in thousands, except share and per share information)

	Nine Months Ended September 30, 2007												Nine Months Ended September 30, 2006
	Validus Re			Talbot			Corporate			Total			Validus Re			Talbot			Corporate			Total
Gross premiums written	$	654,599		$	143,042		$	—		$	797,641		$	475,284		$	—		$	—		$	475,284
Reinsurance premiums ceded		(65,029	)		(615	)		—			(65,644	)		(64,051	)		—			—			(64,051	)
Net premiums written		589,570			142,427			—			731,997			411,233			—			—			411,233
Change in unearned premiums		(193,055	)		1,106			—			(191,949	)		(209,872	)		—			—			(209,872	)
Net premiums earned		396,515			143,533			—			540,048			201,361			—			—			201,361
Losses and loss expenses		127,294			49,132			—			176,426			67,058			—			—			67,058
Policy acquisition costs		48,216			32,784			—			81,000			24,575			—			—			24,575
General and administrative expenses		23,553			25,258			15,277			64,088			13,092			—			12,258			25,350
Share compensation expense		2,824			731			6,499			10,054			1,561			—			4,096			5,657
Total underwriting deductions		201,887			107,905			21,776			331,568			106,286			—			16,354			122,640
Underwriting income (loss)	$	194,628		$	35,628		$	(21,776	)	$	208,480		$	95,075		$	—		$	(16,354	)	$	78,721
Net investment income		60,942			13,360			497			74,799			40,345			—			25			40,370
Other income		—			1,330			—			1,330			—			—			—			—
Finance expenses		(1,143	)		(8,858	)		(16,330	)		(26,331	)		(11	)		—			(5,125	)		(5,136	)
Operating income (loss) before tax	$	254,427		$	41,460		$	(37,609	)	$	258,278		$	135,409		$	—		$	(21,454	)	$	113,955
Taxes		47			1,480			—			1,527			—			—			—			—
Net operating income (loss)	$	254,380		$	39,980		$	(37,609	)	$	256,751		$	135,409		$	—		$	(21,454	)	$	113,955
Net realized gains (losses) on investments		935			(112	)		—			823			(894	)		—			—			(894	)
Net unrealized (losses) gains on investments		1,336			1,800			—			3,136			—			—			—			—
Foreign exchange gains (losses)		7,764			1,446			—			9,210			1,061			—			—			1,061
Fair value of warrants issued		—			—			(2,893	)		(2,893	)		—			—			(77	)		(77	)
Aquiline termination fee		—			—			(3,000	)		(3,000	)		—			—			—			—
Net income (loss)	$	264,415		$	43,114		$	(43,502	)	$	264,027		$	135,576		$	—		$	(21,531	)	$	114,045
Selected Ratios
Net premiums written/Gross premiums written		90.1	%		99.6	%					91.8	%		86.5	%		0.0	%					86.5	%
Losses and loss expenses		32.1	%		34.2	%					32.7	%		33.3	%		0.0	%					33.3	%
Policy acquisition costs		12.2	%		22.8	%					15.0	%		12.2	%		0.0	%					12.2	%
General and administrative expenses		6.6	%		18.1	%					13.7	%		7.3	%		0.0	%					15.4	%
Expense ratio		18.7	%		40.9	%					28.7	%		19.5	%		0.0	%					27.6	%
Combined ratio		50.8	%		75.2	%					61.4	%		52.8	%		0.0	%					60.9	%

Notes:
(a)	Net operating income is calculated based on net income (loss) excluding net realized gains (losses), net unrealized gains (losses), gains (losses) arising from translation of non-US$ denominated balances, the fair value of warrants issued and excluding the Aquiline termination fee. This measure focuses on the underlying fundamentals of our operations without the influence of realized gains (losses) from the sale of investments, translation of non-US$ currencies and non-recurring items. Realized gains (losses) from the sale of investments are driven by the timing of the disposition of investments, not by our operating performance. Gains (losses) arising from translation of non-US$ denominated balances are unrelated to our underlying business.
(b)	Operating results of Talbot have been included from July 2, 2007, the date of acquisition.

Page 12

Validus Holdings, Ltd.
Underwriting Results by Class of Business — Three months ended September 30 — Validus Re
(US Dollars in thousands, except share and per share information)

	Three Months Ended September 30, 2007												Three Months Ended September 30, 2006
Validus Re Segment	Property			Marine			Specialty (b)			Total			Property			Marine			Specialty (b)			Total
Gross premiums written	$	86,623		$	8,345		$	7,261		$	102,229		$	80,078		$	28,463		$	7,964		$	116,505
Reinsurance premiums ceded		(7,282	)		(9	)		—			(7,291	)		(17,645	)		(21,247	)		—			(38,892	)
Net premiums written		79,341			8,336			7,261			94,938			62,433			7,216			7,964			77,613
Change in unearned premiums		37,644			12,039			7,372			57,055			3,141			9,420			2,324			14,885
Net premiums earned		116,985			20,375			14,633			151,993			65,574			16,636			10,288			92,498
Losses and loss expenses		26,921			7,345			3,865			38,131			8,962			1,084			1,531			11,577
Policy acquisition costs		14,799			1,306			2,056			18,161			8,777			515			1,346			10,638
Total underwriting deductions before G&A		41,720			8,651			5,921			56,292			17,739			1,599			2,877			22,215
Underwriting income before G&A		75,265			11,724			8,712			95,701			47,835			15,037			7,411			70,283
General and administrative expenses											9,527												6,987
Share compensation expense											1,281												526
Total underwriting deductions											67,100												29,728
Underwriting income											84,893												62,770
Net investment income											22,706												16,271
Finance expenses											(174	)											(8	)
Operating income before tax (a)											107,425												79,033
Taxes											8												—
Net operating income (a)										$	107,417											$	79,033
Net realized gains (losses) on investments											1,122												(154	)
Net unrealized gains on investments											5,881												—
Foreign exchange gains											4,372												369
Net income										$	118,792											$	79,248
Selected Ratios
Net premiums written/Gross premiums written		91.6	%		99.9	%		100.0	%		92.9	%		78.0	%		25.4	%		100.0	%		66.6	%
Losses and loss expenses		23.0	%		36.0	%		26.4	%		25.1	%		13.7	%		6.5	%		14.9	%		12.5	%
Policy acquisition costs		12.7	%		6.4	%		14.1	%		11.9	%		13.4	%		3.1	%		13.1	%		11.5	%
General and administrative expenses											7.1	%											8.1	%
Expense ratio											19.0	%											19.6	%
Combined ratio											44.1	%											32.1	%

Notes:
(a)	Net operating income is calculated based on net income (loss) excluding net realized gains (losses), net unrealized gains (losses), gains (losses) arising from translation of non-US$ denominated balances, the fair value of warrants issued and excluding the Aquiline termination fee. This measure focuses on the underlying fundamentals of our operations without the influence of realized gains (losses) from the sale of investments, translation of non-US$ currencies and non-recurring items. Realized gains (losses) from the sale of investments are driven by the timing of the disposition of investments, not by our operating performance. Gains (losses) arising from translation of non-US$ denominated balances are unrelated to our underlying business.
(b)	Specialty includes aviation, workers’ compensation, terrorism, life and A&H, and financial lines of business.

Page 13

Validus Holdings, Ltd.
Underwriting Results by Class of Business — Three Months Ended September 30, 2007 — Talbot
(US Dollars in thousands, except share and per share information)

	Three Months Ended September 30, 2007 (a)												Three months ended September 30, 2006
Talbot Segment	Property			Marine			Specialty (c)			Total			Property			Marine			Specialty (c)			Total
Gross premiums written	$	28,550		$	55,016		$	59,476		$	143,042		$	—		$	—		$	—		$	—
Reinsurance premiums ceded		16			39			(670	)		(615	)		—			—			—			—
Net premiums written		28,566			55,055			58,806			142,427			—			—			—			—
Change in unearned premiums		3,743			(92	)		(2,545	)		1,106			—			—			—			—
Net premiums earned		32,309			54,963			56,261			143,533			—			—			—			—
Losses and loss expenses		14,880			24,538			9,714			49,132			—			—			—			—
Policy acquisition costs		6,704			12,043			14,037			32,784			—			—			—			—
Total underwriting deductions before G&A		21,584			36,581			23,751			81,916			—			—			—			—
Underwriting income before G&A		10,725			18,382			32,510			61,617			—			—			—			—
General and administrative expenses											25,258												—
Share compensation expense											731												—
Total underwriting deductions											107,905												—
Underwriting income											35,628												—
Net investment income											13,360												—
Other income											1,330												—
Finance expenses											(8,858	)											—
Operating income before tax (b)											41,460												—
Taxes											1,480												—
Net operating income (b)										$	39,980											$	—
Net realized (losses) gains on investments											(112	)											—
Net unrealized gains on investments											1,800												—
Foreign exchange gain											1,446												—
Net income										$	43,114											$	—
Selected Ratios
Net premiums written/Gross premiums written		100.1	%		100.1	%		98.9	%		99.6	%		0.0	%		0.0	%		0.0	%		0.0	%
Losses and loss expenses		46.1	%		44.6	%		17.3	%		34.2	%		0.0	%		0.0	%		0.0	%		0.0	%
Policy acquisition costs		20.7	%		21.9	%		24.9	%		22.8	%		0.0	%		0.0	%		0.0	%		0.0	%
General and administrative expenses											18.1	%											0.0	%
Expense ratio											40.9	%											0.0	%
Combined ratio											75.2	%											0.0	%

Notes:
(a)	Operating results of Talbot have been included from July 2, 2007, the date of acquisition.
(b)	Net operating income is calculated based on net income (loss) excluding net realized gains (losses), net unrealized gains (losses), gains (losses) arising from translation of non-US$ denominated balances, the fair value of warrants issued and excluding the Aquiline termination fee. This measure focuses on the underlying fundamentals of our operations without the influence of realized gains (losses) from the sale of investments, translation of non-US$ currencies and non-recurring items. Realized gains (losses) from the sale of investments are driven by the timing of the disposition of investments, not by our operating performance. Gains (losses) arising from translation of non-US$ denominated balances are unrelated to our underlying business.
(c)	Specialty class includes war, political violence and political risks, financial institutions, treaty and other classes.

Page 14

Validus Holdings, Ltd.
Underwriting Results by Class of Business — Nine months ended September 30 — Validus Re
(US Dollars in thousands, except share and per share information)

	Nine months ended September 30, 2007												Nine months ended September 30, 2006
Validus Re Segment	Property			Marine			Specialty (b)			Total			Property			Marine			Specialty (b)			Total
Gross premiums written	$	482,093		$	118,643		$	53,863		$	654,599		$	329,043		$	97,980		$	48,261		$	475,284
Reinsurance premiums ceded		(31,396	)		(32,208	)		(1,425	)		(65,029	)		(33,190	)		(30,861	)		—			(64,051	)
Net premiums written		450,697			86,435			52,438			589,570			295,853			67,119			48,261			411,233
Change in unearned premiums		(151,239	)		(30,685	)		(11,131	)		(193,055	)		(156,324	)		(27,872	)		(25,676	)		(209,872	)
Net premiums earned		299,458			55,750			41,307			396,515			139,529			39,247			22,585			201,361
Losses and loss expenses		93,592			18,696			15,006			127,294			47,961			10,700			8,397			67,058
Policy acquisition costs		38,249			4,776			5,191			48,216			18,642			3,424			2,509			24,575
Total underwriting deductions before G&A		131,841			23,472			20,197			175,510			66,603			14,124			10,906			91,633
Underwriting income before G&A		167,617			32,278			21,110			221,005			72,926			25,123			11,679			109,728
General and administrative expenses											23,553												13,092
Share compensation expense											2,824												1,561
Total underwriting deductions											201,887												106,286
Underwriting income											194,628												95,075
Net investment income											60,942												40,345
Finance expenses											(1,143	)											(11	)
Operating income before tax											254,427												135,409
Taxes											47												—
Net operating income (a)										$	254,380											$	135,409
Net realized (losses) gains on investments											935												(894	)
Net unrealized gains on investments											1,336												—
Foreign exchange gain											7,764												1,061
Net income										$	264,415											$	135,576
Selected Ratios
Net premiums written/Gross premiums written		93.5	%		72.9	%		97.4	%		90.1	%		89.9	%		68.5	%		100.0	%		86.5	%
Losses and loss expenses		31.3	%		33.5	%		36.3	%		32.1	%		34.4	%		27.3	%		37.2	%		33.3	%
Policy acquisition costs		12.8	%		8.6	%		12.6	%		12.2	%		13.4	%		8.7	%		11.1	%		12.2	%
General and administrative expenses											6.6	%											7.3	%
Expense ratio											18.7	%											19.5	%
Combined ratio											50.8	%											52.8	%

Notes:
(a)	Net operating income is calculated based on net income (loss) excluding net realized gains (losses), net unrealized gains (losses), gains (losses) arising from translation of non-US$ denominated balances, the fair value of warrants issued and excluding the Aquiline termination fee. This measure focuses on the underlying fundamentals of our operations without the influence of realized gains (losses) from the sale of investments, translation of non-US$ currencies and non-recurring items. Realized gains (losses) from the sale of investments are driven by the timing of the disposition of investments, not by our operating performance. Gains (losses) arising from translation of non-US$ denominated balances are unrelated to our underlying business.
(b)	Specialty includes aviation, workers’ compensation, terrorism, life and A&H, and financial lines of business.

Page 15

Validus Holdings, Ltd.
Underwriting Results by Class of Business — Nine months ended September 30, 2007 — Talbot
(US Dollars in thousands, except share and per share information)

	Nine Months Ended September 30, 2007 (a)												Nine months ended September 30, 2006
Talbot Segment	Property			Marine			Specialty (c)			Total			Property			Marine			Specialty (c)			Total
Gross premiums written	$	28,550		$	55,016		$	59,476		$	143,042		$	—		$	—		$	—		$	—
Reinsurance premiums ceded		16			39			(670	)		(615	)		—			—			—			—
Net premiums written		28,566			55,055			58,806			142,427			—			—			—			—
Change in unearned premiums		3,743			(92	)		(2,545	)		1,106			—			—			—			—
Net premiums earned		32,309			54,963			56,261			143,533			—			—			—			—
Losses and loss expenses		14,880			24,538			9,714			49,132			—			—			—			—
Policy acquisition costs		6,704			12,043			14,037			32,784			—			—			—			—
Total underwriting deductions before G&A		21,584			36,581			23,751			81,916			—			—			—			—
Underwriting income before G&A		10,725			18,382			32,510			61,617			—			—			—			—
General and administrative expenses											25,258												—
Share compensation expense											731												—
Total underwriting deductions											107,905												—
Underwriting income											35,628												—
Net investment income											13,360												—
Other income											1,330												—
Finance expenses											(8,858	)											—
Operating income before tax (b)											41,460												—
Taxes											1,480												—
Net operating income (b)										$	39,980											$	—
Net realized (losses) gains on investments											(112	)											—
Net unrealized gains on investments											1,800												—
Foreign exchange gain											1,446												—
Net income										$	43,114											$	—
Selected Ratios
Net premiums written/Gross premiums written		100.1	%		100.1	%		98.9	%		99.6	%		0.0	%		0.0	%		0.0	%		0.0	%
Losses and loss expenses		46.1	%		44.6	%		17.3	%		34.2	%		0.0	%		0.0	%		0.0	%		0.0	%
Policy acquisition costs		20.7	%		21.9	%		24.9	%		22.8	%		0.0	%		0.0	%		0.0	%		0.0	%
General and administrative expenses											18.1	%											0.0	%
Expense ratio											40.9	%											0.0	%
Combined ratio											75.2	%											0.0	%

Notes:
(a)	Operating results of Talbot have been included from July 2, 2007, the date of acquisition.
(b)	Net operating income is calculated based on net income (loss) excluding net realized gains (losses), net unrealized gains (losses), gains (losses) arising from translation of non-US$ denominated balances, the fair value of warrants issued and excluding the Aquiline termination fee. This measure focuses on the underlying fundamentals of our operations without the influence realized gains (losses) from the sale of investments, translation of non-US$ currencies and non-recurring items. Realized gains (losses) from the sale of investments are driven by the timing of the disposition of investments, not by our operating performance. Gains (losses) arising from translation of non-US$ denominated balances are unrelated to our underlying business.
(c)	Specialty class includes war, political violence and political risks, financial institutions, treaty and other classes.

Page 16

Validus Holdings, Ltd.
Line of Business Treaty Type Detail (Gross Premium Written) — Validus Re
(US Dollars in thousands, except share and per share information)

Validus Re Segment

		Three Months Ended												Nine Months Ended
		September 30, 2007						September 30, 2006						September 30, 2007					September 30, 2006
Line of Business	Treaty Type	GPW			%			GPW			%			GPW		%			GPW		%
Property	Cat XOL (b)	$	63,515			62.1	%	$	55,191			47.4	%	$	350,257		53.5	%	$	230,211		48.4	%
	Per Risk XOL (c)		26,022			25.5	%		21,154			18.2	%		44,879		6.9	%		41,174		8.7	%
	Proportional (d)		(2,914	)		-2.9	%		3,733			3.2	%		86,958		13.3	%		57,658		12.1	%
			86,623			84.7	%		80,078			68.7	%		482,094		73.6	%		329,043		69.2	%
Marine	Cat XOL (b)		—			0.0	%		4,391			3.8	%		287		0.0	%		7,247		1.5	%
	Per Risk XOL (c)		3,659			3.6	%		27,947			23.9	%		91,024		13.9	%		82,253		17.3	%
	Proportional (d)		4,686			4.6	%		(3,875	)		-3.3	%		27,331		4.2	%		8,480		1.8	%
			8,345			8.2	%		28,463			24.3	%		118,642		18.1	%		97,980		20.6	%
Specialty (a)	Cat XOL (b)		2,896			2.8	%		2,294			2.0	%		27,014		4.1	%		20,823		4.4	%
	Per Risk XOL (c)		(6	)		0.0	%		1,435			1.2	%		694		0.1	%		6,094		1.3	%
	Proportional (d)		4,371			4.3	%		4,235			3.6	%		26,155		4.0	%		21,344		4.5	%
			7,261			7.1	%		7,964			6.8	%		53,863		8.2	%		48,261		10.2	%
Total		$	102,229			100.0	%	$	116,505			100.0	%	$	654,599		100.0	%	$	475,284		100.0	%

Notes:
(a)	Specialty includes Aviation, Workers’ Compensation, Terrorism, Life and A&H, and Financial lines of business.
(b)	Cat XOL is comprised of Catastrophe XOL, Aggregate XOL, RPP, Second Event and Third Event covers.
(c)	Per Risk XOL is comprised of Per Event XOL and Per Risk XOL.
(d)	Proportional is comprised of Quota Share and Surplus Share.

Page 17

Validus Holdings, Ltd.
Consolidated Line of Business Policy Type Detail (Gross Premium Written)
(US Dollars in thousands, except share and per share information)

		Three Months Ended										Nine Months Ended
		September 30, 2007					September 30, 2006					September 30, 2007					September 30, 2006
Line of business	Treaty Type	GPW		%			GPW		%			GPW		%			GPW		%
Property	Treaty Reinsurance	$	90,618		36.9	%	$	80,078		68.7	%	$	486,088		60.9	%	$	329,043		69.2	%
	Facultative Reinsurance		11,324		4.6	%		—		0.0	%		11,324		1.4	%		—		0.0	%
	Direct Insurance		13,231		5.4	%		—		0.0	%		13,231		1.7	%		—		0.0	%
			115,173		47.0	%		80,078		68.7	%		510,643		64.0	%		329,043		69.2	%
Marine	Treaty Reinsurance		9,977		4.1	%		28,463		24.4	%		120,275		15.1	%		97,980		20.6	%
	Facultative Reinsurance		14,819		6.0	%		—		0.0	%		14,819		1.9	%		—		0.0	%
	Direct Insurance		38,565		15.7	%		—		0.0	%		38,565		4.8	%		—		0.0	%
			63,361		25.8	%		28,463		24.4	%		173,659		21.8	%		97,980		20.6	%
Specialty	Treaty Reinsurance		14,726		6.0	%		7,964		6.8	%		61,328		7.7	%		48,261		10.2	%
	Facultative Reinsurance		13,525		5.5	%		—		0.0	%		13,525		1.7	%		—		0.0	%
	Direct Insurance		38,486		15.7	%		—		0.0	%		38,486		4.8	%		—		0.0	%
			66,737		27.2	%		7,964		6.8	%		113,339		14.2	%		48,261		10.2	%
Total	Treaty Reinsurance		115,321		47.0	%		116,505		100.0	%		667,691		83.7	%		475,284		100.0	%
	Facultative Reinsurance		39,668		16.2	%		—		0.0	%		39,668		5.0	%		—		0.0	%
	Direct Insurance		90,282		36.8	%		—		0.0	%		90,282		11.3	%		—		0.0	%
	Total	$	245,271		100.0	%	$	116,505		100.0	%	$	797,641		100.0	%	$	475,284		100.0	%

Notes:

Validus Re

Specialty includes aviation, workers’ compensation, terrorism, life and A&H, and financial lines of business.

Talbot

Operating results of Talbot have been included from July 2, 2007, the date of acquisition. Comparative figures do not include Talbot results. Specialty class includes war, political violence and political risks, financial institutions, treaty and other classes.

Page 18

Validus Holdings, Ltd.
Consolidated Analysis of Reserves for Losses and Loss Expenses
(US Dollars in thousands, except share and per share information)

	At September 30, 2007									At December 31, 2006
	Reserves for									Reserves for
	losses and loss			Loss reserves						losses and loss			Loss reserves
	expense			recoverable			Net			expense			recoverable			Net
Property	$	298,708		$	27,572		$	271,136		$	59,385		$	—		$	59,385
Marine		402,464			115,600			286,864			9,866			—			9,866
Specialty (a)		223,359			21,943			201,416			8,112			—			8,112
Total	$	924,531		$	165,115		$	759,416		$	77,363		$	—		$	77,363
	At September 30, 2007									At December 31, 2006
	Case Reserves			IBNR			Total Reserves			Case Reserves			IBNR			Total Reserves
Property	$	152,884		$	145,824		$	298,708		$	32,187		$	27,198		$	59,385
Marine		242,944			159,520			402,464			3,637			6,229			9,866
Specialty (a)		54,321			169,038			223,359			2,290			5,822			8,112
Total	$	450,149		$	474,382		$	924,531		$	38,114		$	39,249		$	77,363
Percentage of total		48.7	%		51.3	%		100.0	%		49.3	%		50.7	%		100.0	%

(a) Specialty includes aviation, workers’ compensation, terrorism, life and A&H, and financial lines of business for the Validus Re segment, and war, political violence and political risks, financial institutions, treaty and other classes for the Talbot segment.

Page 19

Validus Holdings, Ltd.
Consolidated Losses and Loss Ratios by Segment
(US Dollars in thousands, except share and per share information)

	At or for the Three Months Ended
	September 30, 2007									September 30, 2006
Consolidated	Validus Re			Talbot (a)			Total			Validus Re			Talbot (a)			Total
Net reserves at period beginning	$	137,974		$	588,068		$	726,042		$	50,872		$	—		$	50,872
Incurred losses — current year		41,658			70,062			111,720			11,577			—			11,577
Change in prior accident years		(3,527	)		(20,930	)		(24,457	)		—			—			—
Incurred losses		38,131			49,132			87,263			11,577			—			11,577
Exchange rate effects		—			3,175			3,175			—			—			—
Paid losses		(12,715	)		(44,349	)		(57,064	)		(1,174	)		—			(1,174	)
Net reserves at period end		163,390			596,026			759,416			61,275			—			61,275
Losses recoverable		50			165,065			165,115			1,936			—			1,936
Gross reserves at period end	$	163,440		$	761,091		$	924,531		$	63,211		$	—		$	63,211
Net premiums earned	$	151,993		$	143,533		$	295,526		$	92,498		$	—		$	92,498
Current year loss ratio		27.4	%		48.8	%		37.8	%		12.5	%		0.0	%		12.5	%
Prior accident year adjustments		-2.3	%		-14.6	%		-8.3	%		0.0	%		0.0	%		0.0	%
Net loss ratio		25.1	%		34.2	%		29.5	%		12.5	%		0.0	%		12.5	%
Paid to incurred		33.3	%		90.3	%		65.4	%		10.1	%		0.0	%		10.1	%

	At or for the Nine Months Ended
	September 30, 2007									September 30, 2006
	Validus Re			Talbot (a)			Total			Validus Re			Talbot (a)			Total
Net reserves at period beginning	$	77,363		$	588,068		$	665,431		$	—		$	—		$	—
Incurred losses — current year		138,021			70,062			208,083			67,058			—			67,058
Change in prior accident years		(10,727	)		(20,930	)		(31,657	)		—			—			—
Incurred losses		127,294			49,132			176,426			67,058			—			67,058
Exchange rate effects		—			3,175			3,175			67,058			—			67,058
Paid losses		(41,267	)		(44,349	)		(85,616	)		(5,783	)		—			(5,783	)
Net reserves at period end		163,390			596,026			759,416			61,275			—			61,275
Losses recoverable		50			165,065			165,115			1,936			—			1,936
Gross reserves at period end	$	163,440		$	761,091		$	924,531		$	63,211		$	—		$	63,211
Net premiums earned	$	396,515		$	143,533		$	540,048		$	201,361		$	—		$	201,361
Current year loss ratio		34.8	%		48.8	%		38.5	%		33.3	%		0.0	%		33.3	%
Prior accident year adjustments		-2.7	%		-14.6	%		-5.9	%		0.0	%		0.0	%		0.0	%
Net loss ratio		32.1	%		34.2	%		32.7	%		33.3	%		0.0	%		33.3	%
Paid to incurred		32.4	%		90.3	%		48.5	%		8.6	%		0.0	%		8.6	%

Notes:

(a) Operating results of Talbot have been included from July 2, 2007, the date of acquisition.

Page 20

Validus Holdings, Ltd.
Losses and Loss Ratios by Class — Validus Re

(US Dollars in thousands, except share and per share information)

	At or for the Three Months Ended
	September 30, 2007												September 30, 2006
Validus Re Segment	Property			Marine			Specialty (b)			Total			Property			Marine			Specialty (b)			Total
Net reserves at period beginning	$	104,416		$	20,783		$	12,775		$	137,974		$	38,270		$	9,496		$	3,106		$	50,872
Incurred losses — current year		29,716			7,688			4,254			41,658			8,962			1,084			1,531			11,577
Change in prior accident years		(2,795	)		(343	)		(389	)		(3,527	)		—			—			—			—
Incurred losses		26,921			7,345			3,865			38,131			8,962			1,084			1,531			11,577
Exchange rate effects		—			—			—			—			—			—			—			—
Paid losses		(8,559	)		(2,190	)		(1,966	)		(12,715	)		(1,067	)		(107	)		—			(1,174	)
Net reserves at period end		122,778			25,938			14,674			163,390			46,165			10,473			4,637			61,275
Losses recoverable		50			—			—			50			452			1,484			—			1,936
Gross reserves at period end	$	122,828		$	25,938		$	14,674		$	163,440		$	46,617		$	11,957		$	4,637		$	63,211
Net premiums earned	$	116,985		$	20,375		$	14,633		$	151,993		$	65,574		$	16,636		$	10,288		$	92,498
Current year loss ratio		25.4	%		37.7	%		29.1	%		27.4	%		13.7	%		6.5	%		14.9	%		12.5	%
Prior accident year adjustments		-2.4	%		-1.7	%		-2.7	%		-2.3	%		0.0	%		0.0	%		0.0	%		0.0	%
Net loss ratio		23.0	%		36.0	%		26.4	%		25.1	%		13.7	%		6.5	%		14.9	%		12.5	%
Paid to incurred		31.8	%		29.8	%		50.9	%		33.3	%		11.9	%		9.9	%		0.0	%		10.1	%

	At or for the Nine Months Ended
	September 30, 2007												September 30, 2006
	Property			Marine			Specialty (b)			Total			Property			Marine			Specialty (b)			Total
Net reserves at period beginning	$	59,385		$	9,866		$	8,112		$	77,363		$	—		$	—		$	—		$	—
Incurred losses — current year		101,167			21,187			15,667			138,021			47,961			10,700			8,397			67,058
Change in prior accident years (a)		(7,575	)		(2,491	)		(661	)		(10,727	)		—			—			—			—
Incurred losses		93,592			18,696			15,006			127,294			47,961			10,700			8,397			67,058
Exchange rate effects		—			—			—			—			—			—			—			—
Paid losses		(30,199	)		(2,624	)		(8,444	)		(41,267	)		(1,796	)		(227	)		(3,760	)		(5,783	)
Net reserves at period end		122,778			25,938			14,674			163,390			46,165			10,473			4,637			61,275
Losses recoverable		50			—			—			50			452			1,484			—			1,936
Gross reserves at period end	$	122,828		$	25,938		$	14,674		$	163,440		$	46,617		$	11,957		$	4,637		$	63,211
Net premiums earned	$	299,458		$	55,750		$	41,307		$	396,515		$	139,529		$	39,247		$	22,585		$	201,361
Current year loss ratio		33.8	%		38.0	%		37.9	%		34.8	%		34.4	%		27.3	%		37.2	%		33.3	%
Prior accident year adjustments		-2.5	%		-4.5	%		-1.6	%		-2.7	%		0.0	%		0.0	%		0.0	%		0.0	%
Net loss ratio		31.3	%		33.5	%		36.3	%		32.1	%		34.4	%		27.3	%		37.2	%		33.3	%
Paid to incurred		32.3	%		14.0	%		56.3	%		32.4	%		3.7	%		2.1	%		44.8	%		8.6	%

Notes:
(a)	Unallocated Loss Adjustment Expense is apportioned to the Company’s lines of business. The allocation basis was refined in the first quarter of 2007, resulting in $1,327 of expense being reallocated to Property from Marine.
(b)	Specialty includes aviation, workers’ compensation, terrorism, life and A&H, and financial lines of business.

Page 21

Validus Holdings, Ltd.
Losses and Loss Ratios by Class — Talbot

(US Dollars in thousands, except share and per share information)

	At or for the Three Months Ended (a)
	September 30, 2007												September 30, 2006
Talbot Segment	Property			Marine			Specialty (b)			Total			Property			Marine			Specialty (b)			Total
Net reserves at period beginning	$	143,331		$	262,935		$	181,802		$	588,068		$	—		$	—		$	—		$	—
Incurred losses — current year		20,843			31,322			17,897			70,062			—			—			—			—
Change in prior accident years		(5,963	)		(6,784	)		(8,183	)		(20,930	)		—			—			—			—
Incurred losses		14,880			24,538			9,714			49,132			—			—			—			—
Exchange rate effects		1,400			(2,652	)		4,427			3,175			—			—			—			—
Paid losses		(11,252	)		(23,894	)		(9,203	)		(44,349	)		—			—			—			—
Net reserves at period end		148,359			260,927			186,740			596,026			—			—			—			—
Losses recoverable		27,522			115,600			21,943			165,065			—			—			—			—
Gross reserves at period end	$	175,881		$	376,527		$	208,683		$	761,091		$	—		$	—		$	—		$	—
Net premiums earned	$	32,309		$	54,963		$	56,261		$	143,533		$	—		$	—		$	—		$	—
Current year loss ratio		64.5	%		57.0	%		31.8	%		48.8	%		0.0	%		0.0	%		0.0	%		0.0	%
Prior accident year adjustments		-18.5	%		-12.3	%		-14.5	%		-14.6	%		0.0	%		0.0	%		0.0	%		0.0	%
Net loss ratio		46.1	%		44.6	%		17.3	%		34.2	%		0.0	%		0.0	%		0.0	%		0.0	%
Paid to incurred		75.6	%		97.4	%		94.7	%		90.3	%		0.0	%		0.0	%		0.0	%		0.0	%

	At or for the Nine Months Ended (a)
	September 30, 2007												September 30, 2006
	Property			Marine			Specialty (b)			Total			Property			Marine			Specialty (b)			Total
Net reserves at period beginning	$	143,331		$	262,935		$	181,802		$	588,068		$	—		$	—		$	—		$	—
Incurred losses — current year		20,843			31,322			17,897			70,062			—			—			—			—
Change in prior accident years		(5,963	)		(6,784	)		(8,183	)		(20,930	)		—			—			—			—
Incurred losses		14,880			24,538			9,714			49,132			—			—			—			—
Exchange rate effects		1,400			(2,652	)		4,427			3,175			—			—			—			—
Paid losses		(11,252	)		(23,894	)		(9,203	)		(44,349	)		—			—			—			—
Net reserves at period end		148,359			260,927			186,740			596,026			—			—			—			—
Losses recoverable		27,522			115,600			21,943			165,065			—			—			—			—
Gross reserves at period end	$	175,881		$	376,527		$	208,683		$	761,091		$	—		$	—		$	—		$	—
Net premiums earned	$	32,309		$	54,963		$	56,261		$	143,533		$	—		$	—		$	—		$	—
Current year loss ratio		64.5	%		57.0	%		31.8	%		48.8	%		0.0	%		0.0	%		0.0	%		0.0	%
Prior accident year adjustments		-18.5	%		-12.3	%		-14.5	%		-14.6	%		0.0	%		0.0	%		0.0	%		0.0	%
Net loss ratio		46.1	%		44.6	%		17.3	%		34.2	%		0.0	%		0.0	%		0.0	%		0.0	%
Paid to incurred		75.6	%		97.4	%		94.7	%		90.3	%		0.0	%		0.0	%		0.0	%		0.0	%

Notes:
(a)	Operating results of Talbot have been included from July 2, 2007, the date of acqusition.
(b)	Specialty includes war, political violence and political risks, financial institutions, treaty and other classes.

Page 22

Validus Holdings, Ltd.
Consolidated Reinsurance Recoverable Analysis

(US Dollars in thousands, except share and per share information)

Consolidated Reinsurance Recoverable

	September 30, 2007					December 31, 2006
	Reinsurance					Reinsurance
Categories	recoverable		% of total			recoverable		% of total
Top 10 reinsurers	$	155,318		89.6	%			$	0.0	%
Other reinsurers balances > $2 million		8,956		5.2	%		—		0.0	%
Other reinsurers balances < $2 million		8,414		4.9	%		—		0.0	%
Other		600		0.3	%		—		0.0	%
Total	$	173,288		100.0	%		—		0.0	%

		September 30, 2007					December 31, 2006
		Reinsurance					Reinsurance
Top 10 Reinsurers	Rating (a)	recoverable		% of total			recoverable		% of total
Hannover Ruck — AG	AA-	$	35,409		20.4	%			$	0.0	%
Lloyds Syndicate	A+		33,095		19.1	%		—		0.0	%
Allianz	AA-		15,765		9.1	%		—		0.0	%
ERC Frankona Reinsurance Limited	A		14,691		8.5	%		—		0.0	%
Muenchener Ruckversicherungs	AA-		14,025		8.1	%		—		0.0	%
GE Frankona Reinsurance Limited	A		13,463		7.8	%		—		0.0	%
Axa Re	AA		12,051		7.0	%		—		0.0	%
National Indemnity Company	AAA		5,827		3.4	%		—		0.0	%
Max Re Ltd	A-		5,732		3.3	%		—		0.0	%
Aspen Insurance UK Limited	A		5,261		3.0	%		—		0.0	%
		$	155,318		89.6	%			$	0.0	%

Notes:
(a)	99.9% of reserves recoverable at September 30, 2007 were from reinsurers rated A- or better by internationally recognized rating agencies.
(b)	Reinsurance recoverable includes Loss Reserves Recoverable and Recoverables on Paid Losses

Page 23

Validus Holdings, Ltd.
Consolidated Investment Portfolio Composition and Net Investment Income
(US Dollars in thousands, except share and per share information)

	September 30, 2007					December 31, 2006
Total cash and investments	Fair Value ($)		(%)			Fair Value ($)		(%)
U.S. Government and Government Agency	$	375,617		12.5	%	$	119,731		8.3	%
Corporate		495,561		16.5	%		222,989		15.5	%
Non-U.S. Government and Government Agency		43,118		1.4	%		—		0.0	%
Asset-backed and mortgage-backed securities		857,825		28.6	%		502,137		34.9	%
Total fixed maturities		1,772,121		59.0	%		844,857		58.7	%
Total short-term investments		580,765		19.3	%		531,530		36.9	%
Total investments		2,352,886		78.3	%		1,376,387		95.6	%
Cash and cash equivalents		651,428		21.7	%		63,643		4.4	%
Total cash and investments	$	3,004,314		100.0	%	$	1,440,030		100.0	%

	Three months ended						Nine months ended
	September 30,			September 30,			September 30,			September 30,
Net investment income	2007			2006			2007			2006
Fixed maturities and short-term investments	$	24,135		$	8,885		$	54,655		$	27,173
Cash and cash equivalents		13,252			8,064			22,025			14,623
Total gross investment income		37,387			16,949			76,680			41,796
Investment expenses		(827	)		(677	)		(1,881	)		(1,426	)
Net investment income	$	36,560		$	16,272		$	74,799		$	40,370
Annualized effective investment yield (a)		5.13	%		4.96	%		5.12	%		4.53	%

Notes:
(a)	Annualized effective investment yield is calculated by dividing net investment income by the average balance of the assets managed by our portfolio managers and our other investments.

Page 24

Validus Holdings, Ltd.
Consolidated Fixed Maturity Portfolio Credit Quality and Maturity Profile
(US Dollars in thousands, except share and per share information)

	September 30, 2007					December 31, 2006
Total fixed maturities by ratings (a)	Fair Value ($)		(%)			Fair Value ($)		(%)
AAA	$	1,336,868		75.4	%	$	644,106		76.2	%
AA		182,216		10.3	%		69,087		8.2	%
A+		98,226		5.5	%		58,285		6.9	%
A		68,016		3.8	%		44,136		5.2	%
A-		69,919		3.9	%		22,759		2.7	%
BBB		16,876		1.0	%		6,484		0.8	%
	$	1,772,121		100.0	%	$	844,857		100.0	%

	September 30, 2007					December 31, 2006
Total fixed maturities by maturity	Fair Value ($)		(%)			Fair Value ($)		(%)
Due in one year or less	$	390,237		22.0	%	$	67,920		8.0	%
Due after one year through five years		506,700		28.6	%		255,739		30.3	%
Due after five years through ten years		14,716		0.8	%		5,207		0.6	%
Due after ten years		2,644		0.1	%		13,854		1.6	%
		914,297		51.6	%		342,720		40.6	%
Asset-backed and mortgage-backed securities		857,824		48.4	%		502,137		59.4	%
	$	1,772,121		100.0	%	$	844,857		100.0	%

Notes:
(a)	Ratings are lower of S&P or Moody’s, shown at S&P rating equivalent. For investments where Moody’s and S&P ratings are not available, Fitch ratings are used and presented in S&P’s equivalent rating.

Page 25

Validus Holdings, Ltd.
Capitalization
(US Dollars in thousands, except share and per share information)

Capitalization	September 30, 2007			June 30, 2007			March 31, 2007			December 31, 2006			September 30, 2006
Borrowings drawn under credit facility	$	—		$	—		$	—		$	—		$	—
Junior Subordinated Deferrable Debentures (a)		350,000			350,000			150,000			150,000			150,000
Total debt		350,000			350,000			150,000			150,000			150,000
Ordinary shares — capital and surplus		1,790,000			1,323,947			1,251,216			1,191,648			1,120,518
Accumulated other comprehensive income (loss)		(640	)		—			—			875			1,189
Total shareholders’ equity		1,789,360			1,323,947			1,251,216			1,192,523			1,121,707
Total capitalization (b)	$	2,139,360		$	1,673,947		$	1,401,216		$	1,342,523		$	1,271,707
Debt to total capitalization		16.4	%		20.9	%		10.7	%		11.2	%		11.8	%
Debt (excluding Junior Debentures) to total capitalization		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%

Notes:
(a)	$150,000 of 9.069% Junior Subordinated Deferrable Debentures (“9.069% Junior Debentures”) were issued on June 15, 2006, mature on June 15, 2036, are redeemable at the Company’s option at p beginning June 15, 2011, and require quarterly interest payments at a rate of 9.069% per annum. $200,000 of 8.480% Junior Subordinated Deferrable Debentures (“8.480% Junior Debentures”) were issued on June 21, 2007, mature on June 15, 2037, are redeemable at the Company’s option at par beginning June 15, 2012, and require quarterly interest payments at a rate of 8.480% per annum.
(b)	Total capitalization equals total shareholders’ equity plus borrowings drawn under credit facility and Junior Subordinated Deferrable Debenture.

Page 26