Validus 8-K Results of Operations and Financial Condition

	Validus Holdings, Ltd.
	Western World Insurance Group, Inc.
	Unaudited Historical Financial Information
	29 Richmond Road
	Pembroke, HM 08 Bermuda
	Telephone: (441) 278-9000
	Facsimile: (441) 278-9009
	Website: www.validusholdings.com
	Mailing address: Suite 1790 48 Par-la-Ville Road
	Hamilton, HM 11 Bermuda

Validus Holdings, Ltd.

Western World Insurance Group, Inc.

Historical Unaudited Financial Information

The following unaudited financial information is intended to provide you with information on the quarterly results of Western World Insurance Group, Inc. ("Western World") for the period January 1, 2013 to September 30, 2014. The financial information has been prepared and presented in conformity with accounting principles generally accepted in the United States of America. On October 2, 2014, Validus Holdings, Ltd. ("Validus") acquired all of the outstanding capital stock of Western World. The results of Western World will be included in the consolidated results of Validus from October 2, 2014.

Basis of Presentation

• This supplement is for information purposes only. It should be read in conjunction with documents filed by Validus Holdings, Ltd. with the U.S. Securities and Exchange Commission pursuant to the Securities Exchange Act 1934.

• All financial information contained herein is unaudited.

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

• The attached unaudited quarterly income statements attached are prepared using Western World's accounting policies, which differ from those of Validus. Western World recorded underwriting costs as policy acquisition costs, and deferred and amortized these costs over the terms of the policies to which they related. It is Validus’ policy not to defer and amortize internal underwriting costs. Western World classified fixed maturities as either held-to-maturity or available-for-sale, with held-to-maturity securities carried at amortized cost as Western World had the positive intent and ability to hold each of these securities to maturity. It is Validus' policy to hold investments as trading. As of October 2, 2014, the closing date of Western World's acquisition by Validus, Western World has adopted the accounting policies of Validus.

Validus Holdings, Ltd.

Western World Insurance Group, Inc. - Unaudited Historical Financial Information

(Expressed in thousands of U.S. Dollars, except share and per share information)

	Three Months Ended
	September 30, 2014			June 30, 2014			March 31, 2014			December 31, 2013			September 30, 2013			June 30, 2013			March 31, 2013
Revenues
Gross premiums written	$	82,705		$	100,134		$	74,069		$	75,162		$	72,149		$	75,318		$	57,062
Reinsurance premiums ceded	(6,838		)	(9,605		)	(6,334		)	(7,605		)	(6,689		)	(7,479		)	(5,753		)
Net premiums written	75,867			90,529			67,735			67,557			65,460			67,839			51,309
Change in unearned premiums	239			(18,832		)	(1,593		)	(4,231		)	(6,873		)	(15,246		)	(2,453		)
Net premiums earned	76,106			71,697			66,142			63,326			58,587			52,593			48,856
Net investment income	6,701			7,014			7,071			7,151			7,303			7,011			7,382
Net realized / unrealized gains (losses)on investments	1,067			398			1,962			1,081			809			747			1,302
Other (loss) income	(320		)	(1,608		)	(331		)	66			(196		)	(310		)	(407		)
Total revenues	83,554			77,501			74,844			71,624			66,503			60,041			57,133
Expenses
Incurred losses - current year	55,434			52,584			48,370			48,263			47,143			41,053			37,948
Change in prior accident year	(3,655		)	(3,858		)	(3,393		)	(6,398		)	(6,134		)	(4,238		)	(3,750		)
Losses and loss expenses	51,779			48,726			44,977			41,865			41,009			36,815			34,198
Policy acquisition costs	17,681			16,556			15,233			14,046			12,615			12,427			10,530
General and administrative expenses	7,211			7,671			7,426			6,391			6,713			6,551			6,896
Total expenses	76,671			72,953			67,636			62,302			60,337			55,793			51,624
Income before taxes	6,883			4,548			7,208			9,322			6,166			4,248			5,509
Tax (expense)	(1,363		)	(609		)	(1,535		)	(1,891		)	(1,221		)	(612		)	(1,012		)
Net income (loss)	$	5,520		$	3,939		$	5,673		$	7,431		$	4,945		$	3,636		$	4,497
Selected ratios:
Net premiums written / Gross premiums written	91.7		%	90.4		%	91.4		%	89.9		%	90.7		%	90.1		%	89.9		%
Incurred losses - current year	72.8		%	73.3		%	73.1		%	76.2		%	80.5		%	78.1		%	77.7		%
Change in prior accident year	(4.8		)%	(5.3		)%	(5.1		)%	(10.1		)%	(10.5		)%	(8.1		)%	(7.7		)%
Losses and loss expenses	68.0		%	68.0		%	68.0		%	66.1		%	70.0		%	70.0		%	70.0		%
Policy acquisition costs	23.2		%	23.1		%	23.0		%	22.2		%	21.5		%	23.6		%	21.6		%
General and administrative expenses	9.5		%	10.7		%	11.2		%	10.1		%	11.5		%	12.5		%	14.1		%
Expense ratio	32.7		%	33.8		%	34.2		%	32.3		%	33.0		%	36.1		%	35.7		%
Combined ratio	100.7		%	101.8		%	102.2		%	98.4		%	103.0		%	106.1		%	105.7		%