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
February 18, 2010	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 December 31, 2009, the Portfolio had a fair market value of $5,776.3 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 December 31, 2009

	RATING
	Gov’t		AAA		AA		A		BBB		BB		B		Other		Total
Mortgage-Backed Securities
Residential Mortgage-Backed GNMA		124.1		—		—		—		—		—		—		—		124.1
FNMA		267.5		—		—		—		—		—		—		—		267.5
Freddie Mac		160.0		—		—		—		—		—		—		—		160.0
Total Agency RMBS		551.6		—		—		—		—		—		—		—		551.6
Non-Agency RMBS		—		16.8		9.2		15.9		5.9		7.5		34.1		48.2		137.6
Total Residential Mortgage-Backed		551.6		16.8		9.2		15.9		5.9		7.5		34.1		48.2		689.2
Commercial Mortgage-Backed		0.9		41.8		—		—		—		—		—		—		42.7
Total Mortgage-Backed Securities		552.5		58.6		9.2		15.9		5.9		7.5		34.1		48.2		731.9
Asset-Backed Securities
Sub Prime		—		2.3		—		1.9		—		—		—		—		4.2
Credit Cards		—		2.4		—		—		—		—		—		—		2.4
Autos		—		22.2		—		—		0.5		—		—		—		22.7
Student Loan		—		3.9		—		—		—		—		—		—		3.9
Stranded Cost & UK ABS		—		3.5		—		—		—		—		—		—		3.5
Total Asset-Backed Securities		—		34.3		—		1.9		0.5		—		—		—		36.7
Total Asset-Backed and Mortgage-Backed Securities																		768.6

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

* Total cash and investments at 12/31/09 (MMs) = $5,776.3

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Residential Mortgage Backed Securities (“RMBS”) (11.9% of total cash and investments*)

GSE (Government Sponsored Enterprise) RMBS (9.5%)

The Portfolio contains $551.6 million in GSE residential mortgage-backed securities.

Validus’ GSE RMBS allocation has a weighted-average effective duration of 2.0 years; a weighted-average life of 3.5 years; a fair market price of 105.06 and corresponding yield of 3.0%; a book yield of 4.1% and an unrealized gain of approximately $13.7 million.

Non-Agency RMBS — Prime (1.0%)

The Portfolio’s $55.3 million prime non-Agency RMBS allocation includes $13.3 million of AAA rated securities. All of these securities were originally rated AAA at the time of purchase. 62.6% of Validus’ prime non-Agency allocation consists of securities whose loans were originated in 2005 and prior; 17.2% of the prime RMBS allocation was issued in 2006. The allocation has a weighted average current credit enhancement of 8.2%, 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 65.7%.

Validus’ overall prime non-agency allocation has a weighted-average effective duration of 3.3 years; a weighted-average life of 4.3 years; a fair market price of 83.38 and corresponding yield of 8.7%; an equivalent weighted-average book yield of 5.3%; and an unrealized loss of approximately $10.5 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		—		—		4.3		0.9		6.0		11.2
2006		—		—		—		0.7		8.8		9.5
2005		8.8		7.9		6.1		0.8		3.3		26.9
2004 and prior		4.5		0.4		2.8		—		—		7.7
Total		13.3		8.3		13.2		2.4		18.1		55.3

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

Non-Agency RMBS — Alt-A (1.4%)

4.3% of the Portfolio’s $82.3 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. 50.5% 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 22.9%, which will increase as the securities pay down. The allocation has a weighted-average FICO score of 712 and a loan-to-value ratio of 78.2%.

Validus’ overall Alt-A non-agency allocation has a weighted-average effective duration of 2.8 years; a weighted-average life of 4.8 years; a fair market price of 74.73 and corresponding yield of 6.4%; an equivalent weighted-average book yield of 3.2%; and an unrealized loss of approximately $28.8 million.

The Company determined that markets for certain of its non-agency RMBS (“identified non-agency RMBS securities”), primarily Alt-A, were illiquid at December 31, 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.

*Total cash and investments at 12/31/09 (MMs) = $5,776.3

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

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		—		—		—		—		40.8		40.8
2006		—		—		—		—		17.1		17.1
2005		3.5		—		1.4		3.0		13.8		21.7
2004 and prior		—		0.9		1.3		0.5		—		2.7
Total		3.5		0.9		2.7		3.5		71.7		82.3

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

ABS (0.6% of total cash and investments *)

Auto & Credit Card ABS — Non Sub-Prime (0.6%)

The Portfolio’s $32.5 million allocation to ABS includes $32.0 million of AAA rated securities. The ABS portfolio excluding Sub-Prime consists of auto, credit card, stranded cost and UK ABS. 59.0% 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 0.3 years; a weighted-average life of 1.8 years; a fair market price of 99.92 and corresponding yield of 1.6%; a book yield of 4.5% and an unrealized gain of approximately $0.3 million.

Home Equity ABS — Sub-Prime (0.1%)

The Portfolio’s $4.2 million sub-prime home equity ABS allocation includes $2.3 million of AAA rated securities. 81.0% of Validus’ sub-prime allocation consists of securities issued in 2006 and prior. The allocation has a weighted-average current credit enhancement of 34.6%. The credit enhancement will continue to increase as the securities pay down. The securities have a weighted-average FICO score of 638 and a loan-to-value ratio of 76.2%.

Validus’ overall home equity ABS allocation has a weighted-average effective duration of 2.0 years; a weighted-average life of 2.5 years; a fair market price of 91.06 and corresponding yield of 11.1%; a book yield of 1.9%; and an unrealized loss of approximately $0.4 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		0.8		—		—		—		—		0.8
2006		0.8		—		0.9		—		—		1.7
2005		—		—		—		—		—		—
2004 and prior		0.7		—		1.0		—		—		1.7
Total		2.3		—		1.9		—		—		4.2

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

*Total cash and investments at 12/31/09 (MMs) = $5,776.3

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CMBS (0.7% of total cash and investments *)

The Portfolio’s $42.7 million CMBS allocation consists entirely of government guaranteed and AAA rated securities. The Portfolio is well-diversified with seasoned deals that have collateral with transparent histories. 83.4% of Validus’ CMBS allocation consists of securities issued in 2004 and prior. The allocation has a weighted average current credit enhancement of 31.5% and defeasance adjusted credit enhancement of 45.1%, both of which will increase as the securities pay down. The average loan-to-value ratio is 69.6% and the debt service coverage ratio in excess of 1.56.

Validus’ overall CMBS allocation has a weighted-average effective duration of 1.0 years; a weighted-average life of 1.1 years; a fair market price of 102.64 and corresponding yield of 2.8%; a book yield of 5.1%; and an unrealized gain of approximately $1.0 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	Gov’t		AAA		AA		A		BBB		BB and below		Total
2008		0.9		—		—		—		—		—		0.9
2007		—		6.2		—		—		—		—		6.2
2006		—		—		—		—		—		—		—
2005		—		—		—		—		—		—		—
2004 and prior		—		35.6		—		—		—		—		35.6
Total		0.9		41.8		—		—		—		—		42.7

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

* Total cash and investments at 12/31/09 (MMs) = $5,776.3

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As of December 31, 2009, the Portfolio’s allocation to Corporate and Financial issuers was $1,436.6 million and $591.9 million, respectively. The following table presents the ten largest Corporate and ten largest Financial issuers as of December 31, 2009:

Corporate Issuers

			% of Total
	Fair Value		Cash and
ISSUER	($MM)		Investments
JP MORGAN CHASE & CO	$	85.1		1.5	%
WELLS FARGO & COMPANY		63.1		1.1	%
BP PLC		58.5		1.0	%
GENERAL ELECTRIC CO		54.7		0.9	%
AT&T		51.9		0.9	%
VERIZON COMMUNICATIONS		51.9		0.9	%
CREDIT SUISSE GROUP AG		49.9		0.9	%
MORGAN STANLEY		41.9		0.7	%
ROCHE HOLDING AG		41.8		0.7	%
BANK OF AMERICA CORP		37.2		0.6	%
Sub-total	$	536.0		9.2	%

Financial Issuers

			% of Total
	Fair Value		Cash and
ISSUER	($MM)		Investments
JP MORGAN CHASE & CO	$	85.1		1.5	%
WELLS FARGO & COMPANY		63.1		1.1	%
GENERAL ELECTRIC CO		54.7		0.9	%
CREDIT SUISSE GROUP AG		49.9		0.9	%
MORGAN STANLEY		41.9		0.7	%
BANK OF AMERICA CORP		37.2		0.6	%
GOLDMAN SACHS GROUP		31.6		0.5	%
RABOBANK NEDERLAND		25.2		0.4	%
BANK OF NEW YORK MELLON		24.9		0.4	%
CITIGROUP INC		18.6		0.3	%
Sub-total	$	432.2		7.3	%

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.

*Total cash and investments at 12/31/09 (MMs) = $5,776.3

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