Validus 8-K Results of Operations and Financial Condition

Exhibit 99.1

	Validus Holdings, Ltd. Bermuda Commercial Bank Building 19 Par-la-Ville Road Hamilton, HM 11 Bermuda
July 29, 2009	Mailing Address: Suite 1790 48 Par-la-Ville Road Hamilton, HM 11 Bermuda
	Telephone: (441) 278-9000 Facsimile: (441) 278-9090 Website: www.validusre.bm

ADDITIONAL DISCLOSURE ON THE VALIDUS HOLDINGS, LTD. (“VALIDUS”)
CONSOLIDATED INVESTMENT PORTFOLIO (THE “PORTFOLIO”)

As of June 30, 2009, the Portfolio had a fair market value of $3,530.6 million. Validus is providing the following additional disclosure on the composition of its Portfolio in response to the continued volatility in the global credit markets.

Validus Mortgage-Backed And Asset-Backed Securities Portfolio

Market Values (in USD MM) as of June 30, 2009

	RATING
	Gov’t		AAA		AA		A		BBB		BB		B		Other		Total
Mortgage-Backed Securities
Residential Mortgage-Backed GNMA		100.3		—		—		—		—		—		—		—		100.3
FNMA		254.2		—		—		—		—		—		—		—		254.2
Freddie Mac		187.9		—		—		—		—		—		—		—		187.9
Total Agency RMBS		542.4		—		—		—		—		—		—		—		542.4
Non-Agency RMBS		—		51.0		8.3		22.8		17.7		1.2		57.4		23.3		181.7
Total Residential Mortgage-Backed		542.4		51.0		8.3		22.8		17.7		1.2		57.4		23.3		724.1
Commercial Mortgage-Backed		—		66.4		—		—		—		—		—		—		66.4
Total Mortgage-Backed Securities		542.4		117.4		8.3		22.8		17.7		1.2		57.4		23.3		790.5
Asset-Backed Securities
Sub Prime		—		2.8		—		1.3		—		—		—		—		4.1
Credit Cards		—		9.3		—		—		—		—		—		—		9.3
Autos		—		52.0		0.4		—		0.9		—		—		—		53.3
Stranded Cost & UK ABS		—		9.5		—		—		—		—		—		—		9.5
Total Asset-Backed Securities		—		73.6		0.4		1.3		0.9		—		—		—		76.2
Total Asset-Backed and Mortgage-
Backed Securities																		866.7

Note:Lower of Moody’s or Standard & Poor’s rating, presented in Standard & Poor’s equivalent rating.

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Residential Mortgage Backed Securities (“RMBS”) (20.5% of total cash and investments*)

GSE (Government Sponsored Enterprise) RMBS (15.4%)

The Portfolio contains $542.4 million in GSE residential mortgage-backed securities.

Validus’ GSE RMBS allocation has a weighted-average effective duration of 2.3 years; a weighted-average life of 3.9 years; a fair market price of 104.12 and corresponding yield of 3.6%; a book yield of 4.6% and an unrealized gain of approximately $13.0 million.

Non-Agency RMBS — Prime (2.5%)

The Portfolio’s $86.9 million prime non-Agency RMBS allocation includes $40.2 million of AAA rated securities. All of these securities were originally rated AAA at the time of purchase. 55.6% of Validus’ prime non-Agency allocation consists of securities whose loans were originated in 2005 and prior; 19.5% of the prime RMBS allocation was issued in 2006. The allocation has a weighted average current credit enhancement of 8.3%, which will increase as the securities pay down. The allocation has a weighted-average FICO score of 738 and a loan-to-value ratio of 66.3%.

Validus’ overall prime non-agency allocation has a weighted-average effective duration of 2.6 years; a weighted-average life of 4.0 years; a fair market price of 77.76 and corresponding yield of 13.7%; an equivalent weighted-average book yield of 5.5%; and an unrealized loss of approximately $27.5 million.

The following table shows fair market values by vintage year and rating:

Fair Market Values (in USD MM) of Prime non-Agency RMBS by Vintage Year & Rating

Vintage	AAA		AA		A		BBB		BB and below		Total
2007		10.0		—		5.0		0.6		6.1		21.7
2006		0.6		—		10.2		—		6.1		16.9
2005		16.6		3.2		5.8		0.8		5.2		31.6
2004 and prior		13.0		—		3.1		0.6		—		16.7
Total		40.2		3.2		24.1		2.0		17.4		86.9

Note: Lower of Moody’s or Standard & Poor’s rating, presented in Standard & Poor’s equivalent rating.

Non-Agency RMBS — Alt-A (2.7%)

6.3% of the Portfolio’s $94.7 million Alt-A non-Agency RMBS allocation consists of AAA rated securities. All of these securities were originally rated AAA at the time of purchase. 49.1% of Validus’ Alt-A non-Agency allocation consists of securities whose loans were originated in 2006 and prior. The allocation has a weighted average current credit enhancement of 24.1%, which will increase as the securities pay down. The allocation has a weighted-average FICO score of 711 and a loan-to-value ratio of 77.6%.

Validus’ overall Alt-A non-agency allocation has a weighted-average effective duration of 2.5 years; a weighted-average life of 4.4 years; a fair market price of 79.65 and corresponding yield of 5.6%; an equivalent weighted-average book yield of 3.5%; and an unrealized loss of approximately $22.7 million.

The Company determined that markets for certain of its non-agency RMBS (“identified non-agency RMBS securities”), primarily Alt-A, were illiquid at June 30, 2009. As a result, the identified non-agency RMBS securities were deemed to be Level 3 securities as defined by Financial Accounting Standard 157 (“FAS 157”). The Company applied the guidance in FSP FAS 157-4 to determine the fair market value of the identified non-agency RMBS securities using a discounted cash flow model.

The following table shows fair market values by vintage year and rating:

* Total cash and investments at 6/30/09 (MMs) = $3,530.6

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Fair Market Values (in USD MM) of Alt-A non-Agency RMBS by Vintage Year & Rating

Vintage	AAA		AA		A		BBB		BB and below		Total
2007		1.9		4.0		—		—		42.3		48.2
2006		—		—		—		—		20.9		20.9
2005		4.1		—		1.6		4.0		13.3		23.0
2004 and prior		—		1.1		1.5		—		—		2.6
Total		6.0		5.1		3.1		4.0		76.5		94.7

Note: Lower of Moody’s or Standard & Poor’s rating, presented in Standard & Poor’s equivalent rating.

ABS (2.2% of total cash and investments *)

Auto & Credit Card ABS — Non Sub-Prime (2.1%)

The Portfolio’s $72.1 million allocation to ABS includes $70.8 million of AAA rated securities. The ABS portfolio excluding Sub-Prime consists of auto, credit card, stranded cost and UK ABS. 57.4% of Validus’ auto- and credit card-backed allocation consists of securities whose loans were originated in 2006 and prior.

Validus’ ABS allocation, excluding Sub-Prime, has a weighted-average effective duration of 0.5 years; a weighted-average life of 0.6 years; a fair market price of 101.31 and corresponding yield of 2.4%; a book yield of 4.7% and an unrealized gain of approximately $0.9 million.

Home Equity ABS — Sub-Prime (0.1%)

The Portfolio’s $4.1 million sub-prime home equity ABS allocation includes $2.8 million of AAA rated securities. 67.3% of Validus’ sub-prime allocation consists of securities issued in 2006 and prior. The allocation has a weighted-average current credit enhancement of 37.3%. The credit enhancement will continue to increase as the securities pay down. The securities have a weighted-average FICO score of 619 and a loan-to-value ratio of 78.6%.

Validus’ overall home equity ABS allocation has a weighted-average effective duration of 0.9 years; a weighted-average life of 1.0 years; a fair market price of 84.69 and corresponding yield of 30.9%; a book yield of 0.5%; and an unrealized loss of approximately $0.9 million.

The following table shows fair market values by vintage year and rating:

Fair Market Values (in USD MM) of Sub prime HEL ABS by Vintage Year & Rating

											��
Vintage	AAA		AA		A		BBB		BB and below		Total
2007		1.3		—		—		—		—		1.3
2006		1.0		—		1.3		—		—		2.3
2005		—		—		—		—		—		-
2004 and prior		0.5		—		—		—		—		0.5
Total		2.8		—		1.3		—		—		4.1

Note: Lower of Moody’s or Standard & Poor’s rating, presented in Standard & Poor’s equivalent rating.

CMBS (1.9% of total cash and investments *)

The Portfolio’s $66.4 million CMBS allocation consists entirely of AAA rated securities. The Portfolio is well-diversified with seasoned deals that have collateral with transparent histories. 89.2% of Validus’ CMBS allocation consists of securities issued in 2004 and prior. The allocation has a weighted average current credit enhancement of 29.5% and defeasance adjusted credit enhancement of 48.5%, both of which will increase as the securities pay down. The average loan-to-value ratio is 69.5% and the debt service coverage ratio in excess of 1.61.

* Total cash and investments at 6/30/09 (MMs) = $3,530.6

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Validus’ overall CMBS allocation has a weighted-average effective duration of 0.9 years; a weighted-average life of 1.0 years; a fair market price of 101.25 and corresponding yield of 4.6%; a book yield of 5.2%; and an unrealized gain of approximately $0.5 million.

The following table shows fair market values by vintage year and rating:

Fair Market Values (in USD MM) of CMBS by Vintage Year & Rating

Vintage	AAA		AA		A		BBB		BB and below		Total
2007		7.1		—		—		—		—		7.1
2006		—		—		—		—		—		—
2005		—		—		—		—		—		—
2004 and prior		59.3		—		—		—		—		59.3
Total		66.4		—		—		—		—		66.4

Note: Lower of Moody’s or Standard & Poor’s rating, presented in Standard & Poor’s equivalent rating.

The following table shows fair market values by vintage year and rating:

* Total cash and investments at 6/30/09 (MMs) = $3,530.6

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As of June 30, 2009, the Portfolio’s allocation to Corporate and Financial issuers was $788.7 million and $226.1 million, respectively. The following table presents the ten largest Corporate and ten largest Financial issuers as of June 30, 2009:

Corporate Issuers

			% of Total
	Fair Value		Cash and
ISSUER	($MM)		Investments
VERIZON	$	50.2		1.4	%
AT&T INC		41.2		1.2	%
WELLS FARGO		31.8		0.9	%
JP MORGAN CHASE & CO		23.8		0.7	%
BANK OF AMERICA		23.4		0.7	%
GENERAL ELECTRIC		23.3		0.7	%
HEWLETT-PACKARD		22.8		0.6	%
PEPSICO INC		19.7		0.6	%
ORACLE		18.5		0.5	%
ROCHE HOLDINGS		15.9		0.5	%
Sub-total	$	270.6		7.8	%

Financial Issuers

			% of Total
	Fair Value		Cash and
ISSUER	($MM)		Investments
WELLS FARGO	$	31.8		0.9	%
JP MORGAN CHASE & CO		23.8		0.7	%
BANK OF AMERICA		23.4		0.7	%
GENERAL ELECTRIC		23.3		0.7	%
CITIGROUP		15.3		0.4	%
HSBC HOLDINGS		11.5		0.3	%
GOLDMAN SACHS GROUP INC		9.7		0.3	%
BANCO SANTANDER SA		8.8		0.2	%
MORGAN STANLEY		8.7		0.2	%
NORTHERN TRUST		8.1		0.2	%
Sub-total	$	164.4		4.6	%

1	Issuers exclude government-backed, government-sponsored enterprises and cash and cash equivalents.
2	Credit exposures represent only direct exposure to fixed maturities and short-term investments of the parent issuer and its major subsidiaries.

These exposures exclude asset and mortgage backed securities that were issued, sponsored or serviced by the parent.

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