Validus Holdings (VR) Sees $378.9M in Net Losses from Q3 Loss Events

Validus Holdings, Ltd. (NYSE: VR) today provided an initial estimate of Validus’ net losses from third quarter 2017 loss events. Validus expects to record losses from these events, net of reinsurance, retrocessional recoveries, noncontrolling interest and net impact on premiums earned, in the amount of $378.9 million. This amount is apportioned between events as follows:

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 uncertainties inherent in this preliminary information.

As part of the loss evaluation process, Validus has estimated the industry losses from these loss events, excluding losses to the National Flood Insurance Program, as follows: Hurricane Harvey $20 - $30 billion, Hurricane Irma $25 - $40 billion, Hurricane Maria $25 - $45 billion and Mexico City Earthquake $2 - $4 billion. These estimates of industry losses are preliminary and subject to change. The estimated industry losses are not used as the primary driver when determining Validus’ loss estimates. As noted above, Validus’ loss estimates are based on an evaluation of impacted contracts and information provided by customers and intermediaries.

Ed Noonan, Validus’ Chairman and Chief Executive Officer, stated, “The devastation caused by these disasters has inflicted significant suffering and loss to tens of millions of people, and our first thoughts are for those whose lives have been disrupted. A key part of what we do is to help people recover from the financial impact of catastrophes. We will pay significant amounts in this regard, and it is a moment in which I am proud of the role that our company and our industry performs for communities all over the world. Validus is a strong company, and we are very prudent in our risk management. As we look to the rest of the year we continue to be well positioned with significant retrocessional and reinsurance protection in place. While these events will affect each of our businesses, our financial position allows us to sustain these events with no disruption.”

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