VALIDUS HOLDINGS, LTD. PROVIDES INITIAL ESTIMATE OF LOSSES FROM THE CHILEAN EARTHQUAKE AND EUROPEAN WINDSTORM XYNTHIA
Hamilton, Bermuda – March 12, 2010 –Validus Holdings, Ltd. (NYSE: VR) (“Validus” or the “Company”) today provided an initial estimate of losses from the recent Chilean Earthquake and European Windstorm Xynthia.
Validus expects that the Chilean Earthquake will result in total insured industry losses between $4.0 billion and $8.0 billion. Based on these estimates, Validus expects its loss to be in the range of $170 million to $270 million, net of reinstatement premiums and reinsurance, retrocessional and other recoveries.
Validus Chairman and CEO Ed Noonan commented: “Based on current estimates, the Chilean Earthquake is one of the largest non-US events in the history of the global reinsurance market. As one of the world’s leading catastrophe reinsurers, Validus is committed to supporting our clients in Chile and around the world in the aftermath of this devastating event.”
Validus also provided an initial estimate of losses from European Windstorm Xynthia. The Company expects its loss to be in the range of $20 million to $30 million, net of reinstatement premiums and reinsurance, retrocessional, and other recoveries.
The above estimates are based on Validus’ current evaluation of impacted contracts and information provided by customers and intermediaries. Validus’ actual losses from these events may vary materially from these estimates due to the uncertainties inherent in this preliminary information.
About Validus Holdings, Ltd. Validus Holdings, Ltd. is a provider of reinsurance and insurance, conducting its operations worldwide through two wholly-owned subsidiaries, Validus Reinsurance, Ltd. (“Validus Re”) and Talbot Holdings Ltd. (“Talbot Holdings”). Validus Re is a Bermuda based reinsurer focused on short-tail lines of reinsurance. Talbot Holdings is the Bermuda parent of the specialty insurance group primarily operating within the Lloyd’s insurance market through Syndicate 1183. For more information about Validus Holdings, Ltd. please visitwww.validusholdings.com.
Contacts:
Investors: Validus Holdings, Ltd. Jon Levenson, Senior Vice President +1-441-278-9000
or
Media: Jamie Tully/Jonathan Doorley Sard Verbinnen & Co +1-212-687-8080
Roddy Watt/Tony Friend College Hill +44 (0)20 7457 2020
This news release may include forward-looking statements, both with respect to us and our industry, that reflect our current views with respect to future events and financial performance. Statements that include the words “expect,” “intend,” “plan,” “believe,” “project,” “anticipate,” “will,” “may” and similar statements of a future or forward-looking nature identify forward-looking statements. All forward-looking statements address matters that involve risks and uncertainties. Accordingly, there are or will be important factors that could cause actual results to differ materially from those indicated in such statements and you should not place undue reliance on any such statements. We believe that these factors include, but are not limited to, the following: 1) unpredictability and severity of catastrophic events; 2) rating agency actions; 3) adequacy of our risk management and loss limitation methods; 4) cyclicality of demand and pricing in the insurance and reinsurance markets; 5) our limited operating history; 6) our ability to successfully implement our business strategy during “soft” as well as “hard” markets; 7) adequacy of our loss reserves; 8) continued availability of capital and financing; 9) retention of key personnel; 10) competition; 11) potential loss of business from one or more major insurance or reinsurance brokers; 12) our ability to implement, successfully and on a timely basis, complex infrastructure, distribution capabilities, systems, procedures and internal controls, and to develop accurate actuarial data to support the business and regulatory and reporting requirements; 13) general economic and market conditions (including inflation, volatility in the credit and capital markets, interest rates and foreign currency exchange rates); 14) the integration of IPC or other businesses we may acquire or new business ventures we may start; 15) the effect on our investment portfolio of changing financial market conditions including inflation, interest rates, liquidity and other factors; 16) acts of terrorism or outbreak of war; and 17) availability of reinsurance and retrocessional coverage, as well as management’s response to any of the aforementioned factors.
The foregoing review of important factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included herein and elsewhere, including the Risk Factors included in our most recent reports on Form 10-K and Form 10-Q and other documents on file with the SEC. Any forward-looking statements made in this news release are qualified by these cautionary statements, and there can be no assurance that the actual results or developments anticipated by us will be realized or, even if substantially realized, that they will have the expected consequences to, or effects on, us or our business or operations. We undertake no obligation to update publicly or revise any forward-looking statement, whether as a result of new information, future developments or otherwise
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