Bermuda-based re/insurer
Validus Holdings has reported a net loss of US$8.7 million for the fourth quarter of 2017.
This brings its 2017 net loss to US$63.5 million, compared to an operating profit of US$359.4 million in 2016. The insurer’s combined ratio in 2017 was 122.6%, a huge leap from the 84.2% posted in 2016. The losses were attributed to high levels of natural catastrophe losses, particularly due to the devastating North American hurricane season.
However, on a more positive note, its gross written premiums rose 11.4% year-on-year to US$2.95 billion. It also reported a robust renewal season in January 2018, with its reinsurance and asset management segments registering US$921.2 million in gross written premiums, a 41.6% increase from 2017’s renewals.
The insurer also expressed optimism at its upcoming acquisition by global giant
AIG.
“We continue to position the company well, utilizing both traditional retro and the Validus-sponsored Tailwind Re catastrophe bond to improve the risk return characteristics of our portfolio,” said Validus chairman and CEO Edward Noonan.
“Through portfolio optimization we were able to take advantage of rate increases while reducing our peak US hurricane PML’s, which are down 65% since their height in 2013. Looking ahead, we are very excited to become part of the AIG Group at closing and are looking forward to being able to continue to serve our clients and brokers in new and exciting ways.”
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