8-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): June 2, 2008

VALIDUS HOLDINGS, LTD.

(Exact name of registrant as specified in its charter)

Bermuda	001-33606	98-0501001
(State or other jurisdiction of incorporation)	(Commission File Number)	(I.R.S. Employer Identification No.)

19 Par-La-Ville Road, Hamilton, HM 11 Bermuda
(Address of principal executive offices)

Registrant’s telephone number, including area code: (441) 278-9000

Not Applicable
(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 7.01 Regulation FD Disclosure.

     Validus Holdings, Ltd. (the “Company”) is furnishing information regarding the finance expenses of its Talbot segment in order to facilitate more detailed analysis of the expense of the Talbot third party Funds at Lloyd’s (or “FAL”) facility. Talbot Holdings Ltd., a subsidiary of the Company, is the Bermuda parent of the specialty insurance group operating primarily within the Lloyd’s insurance market through Syndicate 1183. The information being furnished is attached to this Current Report on Form 8-K as Exhibit 99.1 and is incorporated herein by reference.

     The information in this Current Report on Form 8-K, including the information set forth in Exhibit 99.1, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits. The following exhibit is filed herewith:

Exhibit No.	Description
99.1	Information regarding the Funds at Lloyd’s finance expenses of the Company’s Talbot segment

SIGNATURES
 

     Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Date: June 2, 2008

VALIDUS HOLDINGS, LTD.      (Registrant)
By:	/s/ Joseph E. (Jeff) Consolino
Name: Joseph E. (Jeff) Consolino Title: Executive Vice President & Chief Financial Officer

EX-99.1

Exhibit 99.1

The Company is furnishing the following information regarding the finance expenses of its Talbot segment in order to facilitate more detailed analysis of the cost of the Talbot third party FAL facility. Talbot is the Bermuda parent of the specialty insurance group operating primarily within the Lloyd’s insurance market through Syndicate 1183 (the “Syndicate”).

1.	Gross premiums written by underwriting year of account for the 2003 to 2007 calendar years in order to demonstrate the relationship between calendar year gross premiums written and ultimate gross premiums written (Table 2-A).
2.	Ultimate gross premiums written and ultimate gross premiums earned for the 2003 to 2005 underwriting years of account in order to demonstrate the relationship between ultimate gross premiums written and ultimate gross premiums earned (Table 2-B).
3.	Gross premiums written and gross premiums earned for the calendar quarters of the 2005 to 2007 calendar years and the interim period ended March 31, 2008 by underwriting year of account in order to show the percentage of ultimate gross premiums earned by underwriting year of account which emerge by calendar quarter (Tables 3-A, 3-B, 3-C, 3-D and 3-E).
4.	Ceded premiums written for the calendar quarters of the 2005 to 2007 calendar years and the interim period ended March 31, 2008 by underwriting year of account in order to show the percentage allocation of ceded premiums written to each underwriting year of account by calendar quarter (Tables 4-A and 4-B).
5.	Ceded premiums earned for the calendar quarters of the 2005 to 2007 calendar years and the interim period ended March 31, 2008 by underwriting year of account in order to show the percentage of ceded premiums earned by underwriting year of account for each calendar quarter of a calendar year (Tables 4-C and 4-D).
6.	Net premiums written and net premiums earned for the calendar quarters of the 2005 to 2007 calendar years and the interim period ended March 31, 2008 by underwriting year of account (Tables 5-A, 5-B and 5-C).
7.	Combined ratio and underwriting profit for the calendar quarters of the 2005 to 2007 calendar years and the interim period ended March 31, 2008 by underwriting year of account in order to show the contribution to calendar quarter underwriting profit by each underwriting year of account (Tables 6-A, 6-B and 6-C).
8.	Investment return for the calendar quarters of the 2005 to 2007 calendar years and the interim period ended March 31, 2008 by underwriting year of account in order to show the percentage contribution in each calendar quarter of each underwriting year of account to total investment return (Tables 7-A and 7-B).
9.	Exchange adjustment for the calendar quarters of the 2005 to 2007 calendar years and the interim period ended March 31, 2008 by underwriting year of account as a reconciling item as Syndicate Profit is the sum of Underwriting Profit, Investment Return and Exchange Adjustment (Table 7-C).
10.	Syndicate profit and FAL cost for the calendar quarters of the 2005 to 2007 calendar years and the interim period ended March 31, 2008 by underwriting year of account in order to demonstrate the relationship between Syndicate profit and FAL cost for each calendar quarter period by year of account (Tables 8-A, 8-B and 8-C).

Page 1

Gross Premiums Written and Gross Premiums Earned by Calendar Year

The following table analyzes historical ultimate basis gross premiums written and gross premiums earned for the Syndicate by underwriting year of account, as well as calculating the ratios of premiums earned and premiums written for each year of account relative to each calendar year. Ultimate premiums written and ultimate premiums earned are recognized over the three calendar years a given underwriting year of account remains open. Ultimate premiums written may differ from ultimate premiums earned due to the translation of underlying currency balances at different average rates of exchange.

Table 2-A

																% of Year of Account Ultimate Gross
Year of	Gross Premiums Written by Calendar Year															Premiums Written in Calendar Year
Account	2003		2004		2005		2006		2007		Total		Ultimate			First			Second			Third			Total
	(Dollars in thousands)
2003	$	415,648	$	23,441	$	15,446	$	—	$	—	$	454,535	$	454,535			91.4	%		5.2	%		3.4	%		100.0	%
2004		—		502,436		49,583		18,106		—		570,125		570,125			88.1	%		8.7	%		3.2	%		100.0	%
2005		—		—		527,125		39,708		16,907		583,740		583,740			90.3	%		6.8	%		2.9	%		100.0	%
2006		—		—		—		590,838		30,028		620,866			(a)
2007		—		—		—		—		640,789		640,789			(a)

Table 2-B

	Ultimate Gross				Earned,
Year of	Premiums				% of
Account	Written		Earned		Written
	(Dollars in thousands)
2003	$	454,535	$	460,990		101.4	%
2004		570,125		570,377		100.0	%
2005		583,740		585,285		100.3	%

(a) Ultimate gross premiums written emerges over three calendar years, and consequently ultimate gross premiums written for the 2006 underwriting year of account will not be finally determined until the end of the 2008 calendar year and ultimate gross premiums written for the 2007 underwriting year of account will not be finally determined until the end of the 2009 calendar year.

Page 2

Gross Premiums Written and Gross Premiums Earned by Calendar Quarter

The following tables analyze historical gross premiums written and gross premiums earned for the Syndicate for each of the quarterly periods comprising the 2005 to 2007 calendar years and the first quarter of 2008, by underwriting year of account. Gross premiums earned by quarter, expressed as a percentage of ultimate gross premiums earned is presented to provide information on the pattern of earning ultimate gross premiums earned.

Table 3-A

Gross Premiums Written
Year of	Calendar Quarter for the Three Months Ended
Account	3/31/05		6/30/05		9/30/05		12/31/05			3/31/06		6/30/06		9/30/06		12/31/06		3/31/07		6/30/07		9/30/07		12/31/07			3/31/08		Total
	(Dollars in thousands)
2003	$	3,437	$	3,629	$	4,470	$	3,910		$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—		$	—	$	15,446
2004		23,485		11,799		14,405		(106	)		3,628		5,592		4,715		4,171		—		—		—		—			—		67,689
2005		142,881		136,213		119,185		128,846			17,368		8,589		5,245		8,506		3,587		7,960		2,946		2,414			—		583,740
2006		—		—		—		—			151,118		149,369		131,204		159,147		16,911		13,240		1,805		(1,928	)		8,280		629,146
2007		—		—		—		—			—		—		—		—		178,307		181,180		138,291		143,011			28,728		669,517
2008		—		—		—		—			—		—		—		—		—		—		—		—			164,786		164,786
	$	169,803	$	151,641	$	138,060	$	132,650		$	172,114	$	163,550	$	141,164	$	171,824	$	198,805	$	202,380	$	143,042	$	143,497		$	201,794	$	2,130,324

Table 3-B

Gross Premiums Earned
Year of	Calendar Quarter for the Three Months Ended
Account	3/31/05		6/30/05		9/30/05		12/31/05		3/31/06		6/30/06		9/30/06		12/31/06		3/31/07		6/30/07		9/30/07		12/31/07		3/31/08		Total
	(Dollars in thousands)
2003	$	10,479	$	7,121	$	5,976	$	5,246	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	28,822
2004		94,338		73,668		57,844		25,700		10,422		8,427		5,685		5,014		—		—		—		—		—		281,098
2005		26,998		59,196		95,899		117,451		93,896		76,237		50,489		34,071		11,674		11,555		4,370		3,449		—		585,285
2006		—		—		—		—		28,288		63,373		101,258		134,782		114,096		85,861		51,280		30,993		17,643		627,574
2007		—		—		—		—		—		—		—		—		33,534		74,584		110,494		143,064		123,982		485,658
2008		—		—		—		—		—		—		—		—		—		—		—		—		29,885		29,885
	$	131,815	$	139,985	$	159,719	$	148,397	$	132,606	$	148,037	$	157,432	$	173,867	$	159,304	$	172,000	$	166,144	$	177,506	$	171,510	$	2,038,322

Table 3-C

Gross Premiums Earned, % of Ultimate Gross Premiums Earned
Year of	Calendar Quarter for the Three Months Ended
Account	3/31/05			6/30/05			9/30/05			12/31/05			3/31/06			6/30/06			9/30/06			12/31/06			3/31/07			6/30/07			9/30/07			12/31/07			3/31/08		Ultimate
																																							(Dollars in thousands)
2003		2.3	%		1.5	%		1.3	%		1.1	%		—			—			—			—			—			—			—			—			—	$	460,990
2004		16.5	%		12.9	%		10.1	%		4.5	%		1.8	%		1.5	%		1.0	%		0.9	%		—			—			—			—			—		570,377
2005		4.6	%		10.1	%		16.4	%		20.1	%		16.0	%		13.0	%		8.6	%		5.8	%		2.0	%		2.0	%		0.7	%		0.6	%		—		585,285

Table 3-D

Gross Premiums Earned, % of Ultimate Gross Premiums Earned by Quarter
Year of	Calendar Quarter After Beginning of the Applicable Year of Account
Account	First			Second			Third			Fourth			Fifth			Sixth			Seventh			Eighth			Ninth			Tenth			Eleventh			Twelfth
2003		—			—			—			—			—			—			—			—			2.3	%		1.5	%		1.3	%		1.1	%
2004		—			—			—			—			16.5	%		12.9	%		10.1	%		4.5	%		1.8	%		1.5	%		1.0	%		0.9	%
2005		4.6	%		10.1	%		16.4	%		20.1	%		16.0	%		13.0	%		8.6	%		5.8	%		2.0	%		2.0	%		0.7	%		0.6	%
2006		4.4	%		9.8	%		15.6	%		20.8	%		17.6	%		13.2	%		7.9	%		4.8	%		2.7	%		—			—			—
2007		4.6	%		10.3	%		15.3	%		19.8	%		17.2	%		—			—			—			—			—			—			—

Table 3-E

Gross Premiums Earned, % of Calendar Quarter by Year of Account
Year of	Calendar Quarter for the Three Months Ended
Account	3/31/05			6/30/05			9/30/05			12/31/05			3/31/06			6/30/06			9/30/06			12/31/06			3/31/07			6/30/07			9/30/07			12/31/07			3/31/08
2003		7.9	%		5.1	%		3.8	%		3.6	%		—			—			—			—			—			—			—			—			—
2004		71.6	%		52.6	%		36.2	%		17.3	%		7.9	%		5.7	%		3.6	%		2.9	%		—			—			—			—			—
2005		20.5	%		42.3	%		60.0	%		79.1	%		70.8	%		51.5	%		32.1	%		19.6	%		7.3	%		6.7	%		2.6	%		1.9	%		—
2006		—			—			—			—			21.3	%		42.8	%		64.3	%		77.5	%		71.6	%		49.9	%		30.9	%		17.5	%		10.3	%
2007		—			—			—			—			—			—			—			—			21.1	%		43.4	%		66.5	%		80.6	%		72.3	%
2008		—			—			—			—			—			—			—			—			—			—			—			—			17.4	%
		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%

Page 3

Ceded Premiums Written and Ceded Premiums Earned by Calendar Quarter

The following tables analyze historical ceded premiums written and ceded premiums earned for the Syndicate for each of the quarterly periods comprising the 2005 to 2007 calendar years and the first quarter of 2008, by underwriting year of account. In analyzing ceded premium written, it should be noted that the Syndicate’s excess of loss reinsurance program is placed substantially in the first quarter of a given calendar year, with reinsurance ceded in subsequent quarters generally attributable to reinstatement premiums, quota share coverage or facultative placements. In contrast to gross premiums written, the Syndicate’s ceded reinsurance is generally earned over a four quarter period.

Table 4-A

Ceded Premiums Written
Year of	Calendar Quarter for the Three Months Ended
Account	3/31/05			6/30/05			9/30/05			12/31/05			3/31/06			6/30/06			9/30/06			12/31/06			3/31/07			6/30/07			9/30/07			12/31/07			3/31/08			Total
	(Dollars in thousands)
2003	$	(613	)	$	355		$	4,475		$	2,207		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	6,424
2004		(26,770	)		(4,082	)		(4,031	)		(5,650	)		430			(101	)		1,805			464			—			—			—			—			—			(37,935	)
2005		(41,497	)		(9,284	)		(28,556	)		(10,304	)		(37,755	)		(4,963	)		(2,320	)		(809	)		1,250			735			2,437			924			—			(130,142	)
2006		—			—			—			—			(64,466	)		(5,998	)		(2,129	)		(3,098	)		(33,316	)		(548	)		(1,385	)		1,038			954			(108,948	)
2007		—			—			—			—			—			—			—			—			(54,371	)		(2,248	)		(1,667	)		(2,715	)		(27,866	)		(88,867	)
2008		—			—			—			—			—			—			—			—			—			—			—			—			(45,493	)		(45,493	)
	$	(68,880	)	$	(13,011	)	$	(28,112	)	$	(13,747	)	$	(101,791	)	$	(11,062	)	$	(2,644	)	$	(3,443	)	$	(86,437	)	$	(2,061	)	$	(615	)	$	(753	)	$	(72,405	)	$	(404,961	)

Table 4-B

Ceded Premiums Written Allocated by Year of Account
Year of	Calendar Quarter for the Three Months Ended
Account	3/31/05			6/30/05			9/30/05			12/31/05			3/31/06			6/30/06			9/30/06			12/31/06			3/31/07			6/30/07			9/30/07			12/31/07			3/31/08
2003		0.9	%		(2.8	)%		(15.9	)%		(16.1	)%		—			—			—			—			—			—			—			—			—
2004		38.9	%		31.4	%		14.3	%		41.1	%		(0.4	)%		0.9	%		(68.2	)%		(13.5	)%		—			—			—			—			—
2005		60.2	%		71.4	%		101.6	%		75.0	%		37.1	%		44.9	%		87.7	%		23.5	%		(1.4	)%		(35.7	)%		(396.3	)%		(122.5	)%		—
2006		—			—			—			—			63.3	%		54.2	%		80.5	%		90.0	%		38.5	%		26.6	%		225.2	%		(137.7	)%		(1.3	)%
2007		—			—			—			—			—			—			—			—			62.9	%		109.1	%		271.1	%		360.2	%		38.5	%
2008		—			—			—			—			—			—			—			—			—			—			—			—			62.8	%
Total		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%

Table 4-C

Ceded Premiums Earned
Year of	Calendar Quarter for the Three Months Ended
Account	3/31/05			6/30/05			9/30/05			12/31/05			3/31/06			6/30/06			9/30/06			12/31/06			3/31/07			6/30/07			9/30/07			12/31/07			3/31/08			Total
	(Dollars in thousands)
2003	$	(1,901	)	$	566		$	4,352		$	1,635		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	4,652
2004		(11,991	)		(11,755	)		(19,189	)		(10,227	)		379			(582	)		1,781			455			—			—			—			—			—			(51,129	)
2005		(10,285	)		(11,960	)		(34,302	)		(23,845	)		(13,515	)		(15,942	)		(13,857	)		(11,168	)		816			542			2,406			919			—			(130,191	)
2006		—			—			—			—			(11,935	)		(19,000	)		(18,277	)		(18,158	)		(12,221	)		(11,023	)		(11,097	)		(8,257	)		918			(109,050	)
2007		—			—			—			—			—			—			—			—			(12,493	)		(12,089	)		(13,920	)		(14,651	)		(14,050	)		(67,203	)
2008		—			—			—			—			—			—			—			—			—			—			—			—			(10,061	)		(10,061	)
	$	(24,177	)	$	(23,149	)	$	(49,139	)	$	(32,437	)	$	(25,071	)	$	(35,524	)	$	(30,353	)	$	(28,871	)	$	(23,898	)	$	(22,570	)	$	(22,611	)	$	(21,989	)	$	(23,193	)	$	(362,982	)

Table 4-D

Ceded Premiums Earned, % of Calendar Year Ceded Premium Written
Year of	Calendar Quarter for the Three Months Ended
Account	3/31/05			6/30/05			9/30/05			12/31/05			3/31/06			6/30/06			9/30/06			12/31/06			3/31/07			6/30/07			9/30/07			12/31/07
2003		(40.9	)%		12.2	%		93.6	%		35.1	%		—			—			—			—			—			—			—			—
2004		22.6	%		22.1	%		36.1	%		19.2	%		18.6	%		(28.6	)%		87.6	%		22.4	%		—			—			—			—
2005		12.8	%		14.9	%		42.7	%		29.7	%		24.8	%		29.3	%		25.4	%		20.5	%		17.4	%		11.6	%		51.4	%		19.6	%
2006		—			—			—			—			17.7	%		28.2	%		27.1	%		27.0	%		28.7	%		25.9	%		26.0	%		19.4	%
2007		—			—			—			—			—			—			—			—			23.5	%		22.7	%		26.2	%		27.6	%
2008		—			—			—			—			—			—			—			—			—			—			—			—

Page 4

Net Premiums Written and Net Premiums Earned

The following tables analyze historical net premiums written and net premiums earned for the Syndicate for each of the quarterly periods comprising the 2005 to 2007 calendar years and the first quarter of 2008, by underwriting year of account. Net premiums written and earned constitute the difference between (i) gross premiums written and earned and (ii) ceded premiums written and earned, respectively.

Table 5-A

Net Premiums Written
Year of	Calendar Quarter for the Three Months Ended
Account	3/31/05			6/30/05		9/30/05		12/31/05			3/31/06			6/30/06		9/30/06		12/31/06		3/31/07			6/30/07		9/30/07		12/31/07			3/31/08		Total
(Dollars in thousands)
2003	$	2,824		$	3,984	$	8,945	$	6,117		$	—		$	—	$	—	$	—	$	—		$	—	$	—	$	—		$	—	$	21,870
2004		(3,285	)		7,717		10,374		(5,756	)		4,058			5,491		6,520		4,634		—			—		—		—			—		29,753
2005		101,384			126,929		90,629		118,542			(20,387	)		3,626		2,925		7,697		4,837			8,695		5,383		3,338			—		453,598
2006		—			—		—		—			86,652			143,371		129,075		156,049		(16,405	)		12,692		420		(890	)		9,234		520,198
2007		—			—		—		—			—			—		—		—		123,936			178,932		136,624		140,296			862		580,650
2008		—			—		—		—			—			—		—		—		—			—		—		—			119,293		119,293
	$	100,923		$	138,630	$	109,948	$	118,903		$	70,323		$	152,488	$	138,520	$	168,380	$	112,368		$	200,319	$	142,427	$	142,744		$	129,389	$	1,725,362

Table 5-B

Net Premiums Earned
Year of	Calendar Quarter for the Three Months Ended
Account	3/31/05		6/30/05		9/30/05		12/31/05		3/31/06		6/30/06		9/30/06		12/31/06		3/31/07		6/30/07		9/30/07		12/31/07		3/31/08 (a)		Total
(Dollars in thousands)
2003	$	8,578	$	7,687	$	10,328	$	6,881	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	33,474
2004		82,347		61,913		38,655		15,473		10,801		7,845		7,466		5,469		—		—		—		—		—		229,969
2005		16,713		47,236		61,597		93,606		80,381		60,295		36,632		22,903		12,490		12,097		6,776		4,368		—		455,094
2006		—		—		—		—		16,353		44,373		82,981		116,624		101,875		74,838		40,183		22,736		18,561		518,524
2007		—		—		—		—		—		—		—		—		21,041		62,495		96,574		128,413		109,932		418,455
2008		—		—		—		—		—		—		—		—		—		—		—		—		19,824		19,824
	$	107,638	$	116,836	$	110,580	$	115,960	$	107,535	$	112,513	$	127,079	$	144,996	$	135,406	$	149,430	$	143,533	$	155,517	$	148,317	$	1,675,340

(a)

The net premiums earned for the three month period ended March 31, 2008 presented in this table do not agree to the figures presented in the Company’s Quarterly Report on Form 10-Q for the three months ended March 31, 2008, as filed with the Securities and Exchange Commission. The difference is a result of Talbot accounting for foreign exchange up to and including December 31, 2007 within its syndicate by treating each of the ledgers within the syndicate as separate branches under FAS 52, each with a separate functional currencies so that each ledger profit and loss account is consolidated at the average rate for the year and the balance sheet (including non-monetary items such as unearned premiums and deferred acquisition costs) is consolidated at the rate of exchange on the balance sheet date (the “closing rate”). Exchange differences on the retranslation of the balance sheet at the closing rate were recognized through other comprehensive income.

For the three months ended March 31, 2008, and future periods, the syndicate has been deemed to have one functional currency United States Dollars (“USD”). Foreign exchange transactions within the syndicate are translated to USD at the exchange rate on the date of the transaction, or at the average rate for the year as an approximation. Monetary assets and liabilities should be retranslated at each period end at the closing rate. Exchange differences on the retranslation of monetary assets are recognized through the profit and loss account. However, for accounting purposes the original policy is retained but a consolidation adjustment is recognized to give effect to the correct accounting policy at the segment level. Thus, syndicate earned premiums will differ from segment earned premiums. The degree of difference will depend primarily on the exchange rate variation between the USD and the United Kingdom Pound.

Table 5-C

Net Premiums Earned, % of Calendar Quarter by Year of Account
Year of	Calendar Quarter for the Three Months Ended
Account	3/31/05			6/30/05			9/30/05			12/31/05			3/31/06			6/30/06			9/30/06			12/31/06			3/31/07			6/30/07			9/30/07			12/31/07			3/31/08
2003		8.0	%		6.6	%		9.3	%		5.9	%		—			—			—			—			—			—			—			—			—
2004		76.5	%		53.0	%		35.0	%		13.3	%		10.1	%		7.0	%		5.9	%		3.8	%		—			—			—			—			—
2005		15.5	%		40.4	%		55.7	%		80.7	%		74.7	%		53.6	%		28.8	%		15.8	%		9.3	%		8.1	%		4.7	%		2.8	%		—
2006		—			—			—			—			15.2	%		39.4	%		65.3	%		80.4	%		75.2	%		50.1	%		28.0	%		14.6	%		12.5	%
2007		—			—			—			—			—			—			—			—			15.5	%		41.8	%		67.3	%		82.6	%		74.1	%
2008		—			—			—			—			—			—			—			—			—			—			—			—			13.4	%
		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%

Page 5

Combined Ratio and Underwriting Profit

The following tables show the Syndicate’s combined ratio by calendar quarter by underwriting year of account and the Syndicate’s underwriting profit by calendar quarter by underwriting year of account. The combined ratio is a common measure of underwriting results, and is calculated in the numerator as the sum of loss and loss expenses, acquisition expenses and other underwriting expenses and in the denominator as net premiums earned. A combined ratio of less than 100% generally indicates profitable underwriting results for the period indicated. The combined ratio does not give effect to investment return.

Table 6-A

Syndicate Combined Ratio (a)
Year of	Calendar Quarter for the Three Months Ended
Account	3/31/05			6/30/05			9/30/05			12/31/05			3/31/06			6/30/06			9/30/06			12/31/06			3/31/07			6/30/07			9/30/07			12/31/07			3/31/08
2003		88.1	%		76.2	%		(17.8	)%		(60.6	)%		—			—			—			—			—			—			—			—			—
2004		82.1	%		88.0	%		72.1	%		84.3	%		84.8	%		(129.6	)%		(90.2	)%		(256.1	)%		—			—			—			—			—
2005		164.3	%		101.8	%		221.9	%		97.9	%		77.5	%		77.5	%		68.8	%		78.3	%		64.5	%		84.1	%		(275.4	)%		(508.9	)%		—
2006		—			—			—			—			155.3	%		116.1	%		78.4	%		74.1	%		77.1	%		76.9	%		86.9	%		118.0	%		29.1	%
2007		—			—			—			—			—			—			—			—			142.4	%		93.8	%		96.5	%		87.4	%		92.0	%
2008		—			—			—			—			—			—			—			—			—			—			—			—			176.0	%
		95.3	%		92.8	%		147.2	%		86.6	%		90.1	%		78.3	%		65.7	%		62.3	%		86.1	%		84.5	%		76.3	%		75.2	%		95.4	%

(a) The Syndicate’s combined ratio will not agree to the Talbot segment’s combined ratio due to operating items not recognized at the syndicate level including: managing agent’s fees and profit commission, share compensation, intangible amortization and other segment operating expenses.

Table 6-B

Underwriting Profit
Year of	Calendar Quarter for the Three Months Ended
Account	3/31/05			6/30/05			9/30/05			12/31/05		3/31/06			6/30/06			9/30/06		12/31/06		3/31/07			6/30/07		9/30/07		12/31/07			3/31/08			Total
(Dollars in thousands)
2003	$	526		$	785		$	9,362		$	8,489	$	—		$	—		$	—	$	—	$	—		$	—	$	—	$	—		$	—		$	19,162
2004		14,765			7,416			10,778			2,435		1,644			18,014			14,199		19,473		—			—		—		—			—			88,724
2005		(10,739	)		(846	)		(75,098	)		2,001		18,052			13,552			11,426		4,972		4,436			1,928		25,438		26,595			—			21,717
2006		—			—			—			—		(9,042	)		(7,150	)		17,956		30,148		23,365			17,289		5,264		(4,086	)		13,154			86,898
2007		—			—			—			—		—			—			—		—		(8,921	)		3,874		3,380		16,136			8,784			23,253
2008		—			—			—			—		—			—			—		—		—			—		—		—			(15,071	)		(15,071	)
	$	4,552		$	7,355		$	(54,958	)	$	12,925	$	10,654		$	24,416		$	43,581	$	54,593	$	18,880		$	23,091	$	34,082	$	38,645		$	6,867		$	224,683

Table 6-C

% of Calendar Quarter Underwriting Profit by Year of Account
Year of	Calendar Quarter for the Three Months Ended
Account	3/31/05			6/30/05			9/30/05			12/31/05			3/31/06			6/30/06			9/30/06			12/31/06			3/31/07			6/30/07			9/30/07			12/31/07			3/31/08
2003		11.5	%		10.7	%		(17.0	)%		65.7	%		—			—			—			—			—			—			—			—			—
2004		324.4	%		100.8	%		(19.6	)%		18.8	%		15.5	%		73.8	%		32.6	%		35.7	%		—			—			—			—			—
2005		(235.9	)%		(11.5	)%		136.6	%		15.5	%		169.4	%		55.5	%		26.2	%		9.1	%		23.5	%		8.3	%		74.7	%		68.8	%		0.0	%
2006		—			—			—			—			(84.9	)%		(29.3	)%		41.2	%		55.2	%		123.8	%		74.9	%		15.4	%		(10.6	)%		191.6	%
2007		—			—			—			—			—			—			—			—			(47.3	)%		16.8	%		9.9	%		41.8	%		127.9	%
2008		—			—			—			—			—			—			—			—			—			—			—			—			(219.5	)%
		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%

Page 6

Investment Return and Exchange Adjustment

The following tables analyze historical investment return for the Syndicate for each of the quarterly periods comprising the 2005 to 2007 calendar years and the first quarter of 2008, by underwriting year of account. Investment return by quarter, expressed as a percentage of total Syndicate investment return is presented to provide information on the percentage of each calendar quarter’s investment return that is attributable to the applicable year of account.

Table 7-A

Investment Return
Year of	Calendar Quarter for the Three Months Ended
Account	3/31/05		6/30/05		9/30/05		12/31/05		3/31/06		6/30/06		9/30/06		12/31/06		3/31/07		6/30/07		9/30/07		12/31/07		3/31/08		Total
(Dollars in thousands)
2003	$	1,013	$	2,910	$	1,255	$	1,818	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	6,996
2004		836		2,647		1,248		1,740		1,368		1,570		5,040		2,136		—		—		—		—		—		16,585
2005		35		378		737		1,102		838		988		2,477		1,518		3,948		3,559		4,829		4,996		—		25,405
2006		—		—		—		—		20		211		1,072		1,566		2,643		2,702		3,770		4,000		10,830		26,814
2007		—		—		—		—		—		—		—		—		57		718		1,952		3,046		6,548		12,321
2008		—		—		—		—		—		—		—		—		—		—		—		—		207		207
	$	1,884	$	5,935	$	3,240	$	4,660	$	2,226	$	2,769	$	8,589	$	5,220	$	6,648	$	6,979	$	10,551	$	12,042	$	17,585	$	88,328

Table 7-B

% of Calendar Quarter Investment Return by Year of Account
Year of	Calendar Quarter for the Three Months Ended
Account	3/31/05			6/30/05			9/30/05			12/31/05			3/31/06			6/30/06			9/30/06			12/31/06			3/31/07			6/30/07			9/30/07			12/31/07			3/31/08
2003		53.8	%		49.0	%		38.7	%		39.0	%		—			—			—			—			—			—			—			—			—
2004		44.4	%		44.6	%		38.5	%		37.3	%		61.5	%		56.7	%		58.7	%		40.9	%		—			—			—			—			—
2005		1.9	%		6.4	%		22.7	%		23.6	%		37.6	%		35.7	%		28.8	%		29.1	%		59.4	%		51.0	%		45.8	%		41.5	%		—
2006		—			—			—			—			0.9	%		7.6	%		12.5	%		30.0	%		39.8	%		38.7	%		35.7	%		33.2	%		61.6	%
2007		—			—			—			—			—			—			—			—			0.9	%		10.3	%		18.5	%		25.3	%		37.2	%
2008		—			—			—			—			—			—			—			—			—			—			—			—			1.2	%
		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%

Table 7-C

Exchange Adjustment
Year of	Calendar Quarter for the Three Months Ended
Account	3/31/05			6/30/05			9/30/05			12/31/05			3/31/06			6/30/06			9/30/06			12/31/06			3/31/07			6/30/07			9/30/07			12/31/07			3/31/08			Total
(Dollars in thousands)
2003	$	339		$	744		$	825		$	226		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	2,134
2004		(20	)		111			898			(420	)		(109	)		(155	)		(23	)		(1,342	)		—			—			—			—			—			(1,060	)
2005		44			(929	)		(288	)		(629	)		104			666			160			1,812			(62	)		1,220			1,028			(1,241	)		—			1,885
2006		—			—			—			—			(34	)		(1,284	)		(121	)		(166	)		51			443			300			(1,255	)		96			(1,970	)
2007		—			—			—			—			—			—			—			—			97			(6	)		(98	)		630			579			1,202
2008		—			—			—			—			—			—			—			—			—			—			—			—			(177	)		(177	)
	$	363		$	(74	)	$	1,435		$	(823	)	$	(39	)	$	(773	)	$	16		$	304		$	86		$	1,657		$	1,230		$	(1,866	)	$	498		$	2,014

Page 7

Syndicate Profit and FAL Cost

Syndicate profit presented in the table below is the sum of (i) underwriting profit, (ii) investment return and(iii) exchange adjustment.

Table 8-A

Syndicate Profit
Year of	Calendar Quarter for the Three Months Ended
Account	3/31/05			6/30/05			9/30/05			12/31/05		3/31/06			6/30/06			9/30/06		12/31/06		3/31/07			6/30/07		9/30/07		12/31/07			3/31/08			Total
(Dollars in thousands)
2003	$	1,878		$	4,439		$	11,442		$	10,533	$	—		$	—		$	—	$	—	$	—		$	—	$	—	$	—		$	—		$	28,292
2004		15,581			10,174			12,924			3,755		2,903			19,429			19,216		20,267		—			—		—		—			—			104,249
2005		(10,660	)		(1,397	)		(74,649	)		2,474		18,994			15,206			14,063		8,302		8,322			6,707		31,295		30,350			—			49,007
2006		—			—			—			—		(9,056	)		(8,223	)		18,907		31,548		26,059			20,434		9,334		(1,341	)		24,080			111,742
2007		—			—			—			—		—			—			—		—		(8,767	)		4,586		5,234		19,812			15,911			36,776
2008		—			—			—			—		—			—			—		—		—			—		—		—			(15,041	)		(15,041	)
	$	6,799		$	13,216		$	(50,283	)	$	16,762	$	12,841		$	26,412		$	52,186	$	60,117	$	25,614		$	31,727	$	45,863	$	48,821		$	24,950		$	315,025

The below tables show Talbot’s historical FAL cost and the FAL cost as a percentage of Syndicate profit. Between 30% and 65% of syndicate profit is payable to Talbot third party FAL providers up to and including the 2007 underwriting year of account. Some of these costs are fixed; others are profit-related. The fixed payments are generally amortized in proportion to gross premiums earned. The profit-related payments will be $nil in a given calendar quarter for a specific underwriting year of account until that individual year of account becomes profitable on a cumulative basis.

Table 8-B

FAL Cost
Year of	Calendar Quarter for the Three Months Ended
Account	3/31/05		6/30/05		9/30/05		12/31/05		3/31/06		6/30/06		9/30/06		12/31/06		3/31/07		6/30/07		9/30/07		12/31/07			3/31/08		Total
(Dollars in thousands)
2003	$	1,287	$	3,283	$	7,374	$	7,150	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—		$	—	$	19,094
2004		5,868		3,791		4,570		1,607		1,101		7,120		7,173		7,931		—		—		—		—			—		39,161
2005		125		404		591		741		927		65		317		202		124		77		4,744		11,390			—		19,707
2006		—		—		—		—		161		380		1,083		10,801		9,204		7,077		3,223		(302	)		8,358		39,985
2007		—		—		—		—		—		—		—		—		159		387		815		4,938			4,668		10,967
2008		—		—		—		—		—		—		—		—		—		—		—		—			—		—
	$	7,280	$	7,478	$	12,535	$	9,498	$	2,189	$	7,565	$	8,573	$	18,934	$	9,487	$	7,541	$	8,782	$	16,026		$	13,026	$	128,914

Table 8-C

FAL Cost, % of Syndicate Profit
Year of	Calendar Quarter for the Three Months Ended
Account	3/31/05			6/30/05			9/30/05			12/31/05			3/31/06			6/30/06			9/30/06			12/31/06			3/31/07			6/30/07			9/30/07			12/31/07			3/31/08
2003		68.5	%		74.0	%		64.4	%		67.9	%		—			—			—			—			—			—			—			—			—
2004		37.7	%		37.3	%		35.4	%		42.8	%		37.9	%		36.6	%		37.3	%		39.1	%		—			—			—			—			—
2005		(1.2	)%		(28.9	)%		(0.8	)%		30.0	%		4.9	%		0.4	%		2.3	%		2.4	%		1.5	%		1.1	%		15.2	%		37.5	%		—
2006		—			—			—			—			(1.8	)%		(4.6	)%		5.7	%		34.2	%		35.3	%		34.6	%		34.5	%		22.5	%		34.7	%
2007		—			—			—			—			—			—			—			—			(1.8	)%		8.4	%		15.6	%		24.9	%		29.3	%
2008		—			—			—			—			—			—			—			—			—			—			—			—			—

Page 8