exv99w1

Exhibit 99.1


Contacts:
Investors:		Media:
Validus Holdings, Ltd.		Jamie Tully/Jonathan Doorley
Jon Levenson, Senior Vice President		Sard Verbinnen & Co.
+1-441-278-9000		+1-212-687-8080
Jon.Levenson@validusholdings.com
		Roddy Watt / Tony Friend
		College Hill
		+44 (0) 20 7457 2020

VALIDUS ANNOUNCES SECOND QUARTER 2010 NET INCOME OF $179.8 MILLION

Diluted Operating Earnings Per Share of $1.04

Diluted Book Value Per Share of $30.30 at June 30, 2010

Pembroke, Bermuda, Aug 5, 2010 — Validus Holdings, Ltd. (“Validus” or the “Company”) (NYSE: VR) today reported net income of $179.8 million, or $1.44 per diluted common share for the three months ended June 30, 2010, compared with net income of $137.6 million, or $1.74 per diluted common share, for the three months ended June 30, 2009. Net income for the six months ended June 30, 2010 was $61.4 million, or $0.48 per diluted common share compared with $232.5 million, or $2.94 per diluted common share, for the six months ended June 30, 2009.

Net operating income for the three months ended June 30, 2010 was $129.8 million, or $1.04 per diluted share, compared with net operating income of $110.4 million, or $1.40 per diluted common share, for the three months ended June 30, 2009. Net operating (loss) for the six months ended June 30, 2010 was ($6.6) million, or ($0.05) per diluted common share, compared with net operating income of $210.8 million, or $2.67 per diluted common share, for the six months ended June 30, 2009.

Net operating income, a non-GAAP financial measure, is defined as net income excluding net realized and unrealized gains or losses on investments, foreign exchange gains and losses and non-recurring items. Reconciliations of this measure to net income, the most directly comparable GAAP measure, are presented at the end of this release.

In relation to the second quarter and six months to June 30, 2010 results, Ed Noonan, Chairman and Chief Executive Officer of Validus commented: “In the second quarter of 2010, we were able to grow our diluted book value per share including dividends by 6.5%. We also completed the re-underwriting and optimization of the reinsurance portfolio acquired from IPC in the second half of 2009. We are following through on our commitment to shareholders to manage capital actively and in the second quarter repurchased approximately $315.0 million of our common shares, which included 12.0 million common shares purchased pursuant to our modified Dutch auction tender offer. We close the quarter with a very strong balance sheet, including loss reserves with a high component of IBNR against our short-tail portfolio.”

Validus Holdings, Ltd. 29 Richmond Road, Pembroke, Bermuda HM08
Tel: 441.278.9000 Fax: 441.278.9090
www.validusholdings.com

Second quarter 2010 results

Highlights for the second quarter include the following:

	•		Gross premiums written for the three months ended June 30, 2010 were $516.9 million compared to $425.0 million for the three months ended June 30, 2009, an increase of $91.8 million, or 21.6%, primarily due to the IPC acquisition which closed in September 2009.

	•		Net premiums earned for the three months ended June 30, 2010 were $437.9 million compared to $328.2 million for the three months ended June 30, 2009, an increase of $109.7 million, or 33.4%.

	•		Underwriting income for the three months ended June 30, 2010 was $109.7 million compared to $92.2 million for the three months ended June 30, 2009, an increase of $17.5 million, or 19.0%. In the second quarter of 2010, the Company incurred $70.5 million of losses and loss expenses, gross of reinstatement premiums from Deepwater Horizon, Aban Pearl, the Perth hailstorms and the riots in Bangkok, Thailand.

	•		Combined ratio of 74.9% which included $49.6 million of favorable prior year loss reserve development, benefiting the loss ratio by 11.3 percentage points.

	•		Net operating income for the three months ended June 30, 2010 of $129.8 million compared to net operating income of $110.4 million for the three months ended June 30, 2009, an increase of $19.4 million, or 17.6%, reflecting increased underwriting and investment income.

	•		Net income for the three months ended June 30, 2010 was $179.8 million compared to net income of $137.6 million for the three months ended June 30, 2009, an increase of $42.2 million, or 30.7%, reflecting an increase in net unrealized investment gains of $4.4 million, an increase in foreign exchange losses of $12.5 million, offset by an increase in net realized investment gains of $15.1 million.

Highlights for the year to date include the following:

	•		Gross premiums written for the six months ended June 30, 2010 were $1,387.8 million compared to $1,034.9 million for the six months ended June 30, 2009, an increase of $352.9 million, or 34.1%.

	•		Net premiums earned for the six months ended June 30, 2010 were $895.6, compared to $647.0 for the six months ended June 30, 2009, an increase of $248.7 million, or 38.4%.

	•		Combined ratio of 105.3% which included $76.3 million of favorable prior year loss reserve development, benefiting the loss ratio by 8.5 percentage points.

	•		Net operating (loss) for the six months ended June 30, 2010 of ($6.6) million compared to net operating income of $210.8 million for the six months ended June 30, 2009, a decrease of $217.4 million, or 103.1%, primarily due to significant worldwide loss events in the first six months of 2010.

	•		Net income for the six months ended June 30, 2010 was $61.4 million compared to net income of $232.5 million for the six months ended June 30, 2009, a decrease of $171.1 million, or 73.6%, reflecting a decrease in net unrealized investment gains of $2.3 million, an increase in foreign exchange losses of $17.1 million, offset by an increase in net realized investment gains of $49.9 million.

Validus Holdings, Ltd. 29 Richmond Road, Pembroke, Bermuda HM08
Tel: 441.278.9000 Fax: 441.278.9090
www.validusholdings.com

Notable Loss Events

During the three months ended June 30, 2010, the Company incurred an estimated $70.5 million of losses and loss expenses, gross of reinstatement premiums of $3.3 million, in connection with the notable losses below, which represented 16.1 percentage points of the loss ratio. During the three months ended June 30, 2009, the Company incurred $11.0 million of losses in connection with these notable events⁽¹⁾, which represented 3.4 percentage points of the loss ratio, each as further described below.


		Three months ended June 30, 2010
Second Quarter
2010 Notable Loss
Events (1)		Validus Re					Talbot					Total
		Losses and					Losses and					Losses and
		Loss					Loss					Loss
(Dollars in thousands)	Description	Expenses (2)		% of NPE			Expenses (2)		% of NPE			Expenses (2)		% of NPE
Deepwater Horizon	Oil rig and spill	$	33,681		12.9	%	$	10,420		5.9	%	$	44,101		10.1	%
Aban Pearl	Oil rig		10,000		3.8	%		500		0.3	%		10,500		2.4	%
Bangkok riots	Terrorism		7,500		2.9	%		—		—			7,500		1.7	%
Perth hailstorm	Hailstorm		8,390		3.1	%		—		—			8,390		1.9	%

Total		$	59,571		22.7	%	$	10,920		6.2	%	$	70,491		16.1	%

Three months ended June 30, 2009

Second Quarter

2009 Notable Loss

Events

Validus Re

Talbot

Total

Losses and

Loss

(Dollars in thousands)

Description

Expenses (2)

% of NPE

Expenses (2)

% of NPE

Expenses (2)

% of NPE

Commercial flight

Specialty Loss

2,715

1.7

8,300

5.0

11,015

3.4

Total

2,715

1.7

8,300

5.0

11,015

3.4


(1)		These 2010 notable loss event amounts are based on management’s estimates following a review of the Company’s potential exposure and discussions with certain clients and brokers. Given the magnitude and recent occurrence of these events, and other uncertainties inherent in loss estimation, meaningful uncertainty remains regarding losses from these events and the Company’s actual ultimate net losses from these events may vary materially from these estimates.

(2)		Net of reinsurance but not net of reinstatement premiums. Reinstatement premiums were $3.3 million for the three months ended June 30, 2010.

Validus Holdings, Ltd. 29 Richmond Road, Pembroke, Bermuda HM08
Tel: 441.278.9000 Fax: 441.278.9090
www.validusholdings.com

Validus Re Segment Results

Gross premiums written for the three months ended June 30, 2010 were $284.3 million compared to $199.6 million for the three months ended June 30, 2009, an increase of $84.8 million, or 42.5%. Gross premiums written for the three months ended June 30, 2010 were comprised of $261.6 million of property premiums, $15.4 million of marine premiums and $7.4 million of specialty premiums compared to $183.9 million of property premiums, $4.0 million of marine premiums and $11.7 million of specialty premiums in the three months ended June 30, 2009.

Net premiums earned for the three months ended June 30, 2010 were $262.0 million compared to $163.7 million for the three months ended June 30, 2009, an increase of $98.3 million, or 60.1%.

The combined ratio for the three months ended June 30, 2010 was 66.6% compared to 52.5% for the three months ended June 30, 2009, an increase of 14.1 percentage points.

The loss ratio for the three months ended June 30, 2010 was 47.2% compared to 25.1% for the three months ended June 30, 2009, an increase of 22.1 percentage points, due primarily to significant loss events in the three months ended June 30, 2010, which added 22.7 percentage points to the loss ratio. The loss ratio for the three months ended June 30, 2010 included favorable prior year loss reserve development of $17.9 million, benefiting the loss ratio by 6.9 percentage points.

Gross premiums written for the six months ended June 30, 2010 were $924.6 million compared to $609.7 million for the six months ended June 30, 2009, an increase of $314.9 million, or 51.7%. Gross premiums written for the six months ended June 30, 2010 were comprised of $674.0 million of property premiums, $185.4 million of marine premiums and $65.3 million of specialty premiums compared to $424.6 million of property premiums, $125.5 million of marine premiums and $59.5 million of specialty premiums in the six months ended June 30, 2009.

Net premiums earned for the six months ended June 30, 2010 were $546.0 million compared to $338.1 million for the six months ended June 30, 2009, an increase of $207.8 million, or 61.5%.

The combined ratio for the six months ended June 30, 2010 was 107.1% compared to 54.9% for the six months ended June 30, 2009, an increase of 52.2 percentage points.

The loss ratio for the six months ended June 30, 2010 was 86.6% compared to 28.6% for the six months ended June 30, 2009, an increase of 58.0 percentage points. The six months ended June 30, 2010 included losses from significant property and marine loss events, which represented 65.3 percentage points of the loss ratio. The loss ratio for the six months ended June 30, 2010 included favorable prior year loss reserve development of $29.4 million, benefiting the loss ratio by 5.4 percentage points.

Talbot Segment Results

Gross premiums written for the three months ended June 30, 2010 were $253.7 million compared to $235.1 million for the three months ended June 30, 2009, an increase of $18.6 million, or 7.9%. Gross premiums written for the three months ended June 30, 2010 were comprised of $97.5 million of property premiums, $79.4 million of marine premiums and $76.8 million of specialty premiums compared to $78.8 million of property premiums, $82.7 million of marine premiums and $73.7 million of specialty premiums in the three months ended June 30, 2009.

Validus Holdings, Ltd. 29 Richmond Road, Pembroke, Bermuda HM08
Tel: 441.278.9000 Fax: 441.278.9090
www.validusholdings.com

Net premiums earned for the three months ended June 30, 2010 were $175.9 million compared to $164.5 million for the three months ended June 30, 2009, an increase of $11.4 million, or 6.9%.

The combined ratio for the three months ended June 30, 2010 was 77.4% compared to 87.4% for the three months ended June 30, 2009, a decrease of 10.0 percentage points.

The loss ratio for the three months ended June 30, 2010 was 40.4% compared to 50.8% for the three months ended June 30, 2009, a decrease of 10.4 percentage points. For the three months ended June 30, 2010, Talbot incurred $10.4 million of losses attributable to Deepwater Horizon, which represented 5.9 percentage points of the loss ratio. The loss ratio for the three months ended June 30, 2010 included favorable prior year loss reserve development of $31.7 million, benefiting the loss ratio by 18.0 percentage points.

Gross premiums written for the six months ended June 30, 2010 were $524.3 million compared to $463.0 million for the six months ended June 30, 2009, an increase of $61.2 million, or 13.2%. Gross premiums written for the six months ended June 30, 2010 were comprised of $183.4 million of property premiums, $182.2 million of marine premiums and $158.6 million of specialty premiums compared to $139.5 million of property premiums, $175.1 million of marine premiums and $148.5 million of specialty premiums for the six months ended June 30, 2009.

Net premiums earned for the six months ended June 30, 2010 were $349.7 million compared to $308.8 million for the six months ended June 30, 2009, an increase of $40.9 million, or 13.2%.

The combined ratio for the six months ended June 30, 2010 was 93.7% compared to 89.3% for the six months ended June 30, 2009, an increase of 4.4 percentage points.

The loss ratio for the six months ended June 30, 2010 was 57.4% compared to 51.8% for the six months ended June 30, 2009, an increase of 5.6 percentage points. The six months ended June 30, 2010 included losses from Deepwater Horizon, the Chilean earthquake and Aban Pearl which represented 17.4 percentage points of the loss ratio. The loss ratio for the six months ended June 30, 2010, included favorable prior year loss reserve development of $46.9 million, benefiting the loss ratio by 13.4 percentage points.

Corporate Segment Results

Corporate segment results are comprised of executive and board expenses, internal and external audit expenses, interest and costs incurred in connection with the Company’s senior notes and junior subordinated deferrable debentures and other costs relating to the Company as a whole. General and administrative expenses for the three months ended June 30, 2010 were $16.4 million compared to $5.1 million for the three months ended June 30, 2009, an increase of $11.3 million, or 220.8%. Share compensation expenses for the three months ended June 30, 2010 was $3.6 million compared to $2.0 million for the three months ended June 30, 2009, an increase of $1.6 million, or 82.7%. General and administrative expenses for the six months ended June 30, 2010 were $28.1 million compared to $9.2 million for the six months ended June 30, 2009, an increase of $18.9 million, or 206.0%. Share compensation expenses for the six months ended June 30, 2010 were $7.0 million compared to $5.3 million for the six months ended June 30, 2009, an increase of $1.7 million, or 31.6%. During the first quarter, to better align the Company’s operating and reporting structure with its current strategy, there was a change in the segment structure. This change was to allocate all ‘non-core underwriting’ expenses, predominantly general and administration and stock compensation expenses to the Corporate segment which contributed to the increase.

Validus Holdings, Ltd. 29 Richmond Road, Pembroke, Bermuda HM08
Tel: 441.278.9000 Fax: 441.278.9090
www.validusholdings.com

Investments

Net investment income for the three months ended June 30, 2010 was $34.8 million compared to $27.0 million for the three months ended June 30, 2009, an increase of $7.8 million, or 29.1%. Net investment income for the six months ended June 30, 2010 was $69.1 million compared to $53.7 million for the six months ended June 30, 2009, an increase of $15.4 million, or 28.6%. Net investment income increased as a result of higher average investment balances slightly offset by reduced market yields.

Net realized gains on investments for the three months ended June 30, 2010 were $12.4 million compared to net realized (losses) of ($2.7) million for the three months ended June 30, 2009, an increase of $15.1 million, or 569.5%. Net realized gains on investments for the six months ended June 30, 2010 were $23.8 million compared to net realized (losses) of ($26.1) million for the six months ended June 30, 2009, an increase of $49.9 million, or 191.4%.

Net unrealized gains on investments for the three months ended June 30, 2010 were $41.6 million compared to $37.2 million for the three months ended June 30, 2009, an increase of $4.4 million, or 11.8%. Net unrealized gains on investments for the six months ended June 30, 2010 were $57.1 million compared to $59.4 million for the six months ended June 30, 2009, a decrease of $2.3 million, or 4.0%. The net unrealized gains in the six months ended June 30, 2010 resulted primarily from lower market interest rates.

Finance Expenses

Finance expenses for the three months ended June 30, 2010 were $13.2 million compared to $10.8 million for the three months ended June 30, 2009, an increase of $2.5 million, or 22.9%. Finance expenses for the six months ended June 30, 2010 were $28.4 million compared to $18.5 million for the six months ended June 30, 2009, an increase of $9.9 million, or 53.6%. This increase primarily related to the interest on the senior notes issued at the beginning of 2010. Finance expenses consisted principally of interest on the Company’s senior notes, junior subordinated deferrable debentures and third-party capital costs for Talbot.

Shareholders’ Equity and Capitalization

As at June 30, 2010, shareholders’ equity was $3.6 billion. Diluted book value per common share was $30.30 at June 30, 2010, compared to $28.66 at March 31, 2010. Diluted book value per common share is a non-GAAP financial measure. A reconciliation of this measure to shareholders’ equity is presented at the end of this release.

Total capitalization at June 30, 2010 was $4.1 billion, including $289.8 million of junior subordinated deferrable debentures and $246.8 million of senior notes.

Validus Holdings, Ltd. 29 Richmond Road, Pembroke, Bermuda HM08
Tel: 441.278.9000 Fax: 441.278.9090
www.validusholdings.com

Share Repurchase Program

A summary of the share repurchases made to date under the Company’s previously announced share repurchase program is as follows:


	Share Repurchase Activity
	As at March 31,								As at June 30,
Effect of share repurchases:	2010 (cumulative)		April		May		June		2010

Aggregate purchase price (1)	$	212,521	$	8,590	$	—	$	307,343	$	315,933
Shares repurchased		7,983,471		314,923		—		12,300,200		12,615,123
Average price (1)	$	26.62	$	27.28	$	—	$	24.99	$	25.04
Estimated net accretive (dilutive) impact on:
Diluted BV per common share (2)	$	0.10								0.66
Diluted EPS — Quarter (3)	$	—								0.07


	Share Repurchase Activity
	As at June 30,						As at August 4,		Cumulative to Date
Effect of share repurchases:	2010		July		August		2010		Effect

Aggregate purchase price (1)	$	315,933	$	3,994	$	—	$	3,994	$	532,448
Shares repurchased		12,615,123		163,100		—		163,100		20,761,694
Average price (1)	$	25.04	$	24.48	$	—	$	24.48	$	25.65
Estimated net accretive (dilutive) impact on:
Diluted BV per common share (2)		0.66								0.66
Diluted EPS — Quarter (3)		0.07								—


(1)		Share transactions are on a trade date basis through August 4, 2010 and are inclusive of commissions. Average share price is rounded to two decimal places.

(2)		As the average price per share repurchased during the periods 2009 and 2010 was lower than the book value per common share, the repurchase of shares increased the ending book value per share.

(3)		The estimated impact on diluted earnings per share was calculated by comparing reported results versus i) net income per share plus an estimate of lost net investment income on the cumulative share repurchases divided by ii) weighted average diluted shares outstanding excluding the weighted average impact of cumulative share repurchases. The impact of cumulative share repurchases was accretive to diluted earnings per share.

Validus Holdings, Ltd. 29 Richmond Road, Pembroke, Bermuda HM08
Tel: 441.278.9000 Fax: 441.278.9090
www.validusholdings.com

Conference Call

The Company will host a conference call for analysts and investors on Aug 6, 2010 at 9:00 AM (Eastern) to discuss the second quarter 2010 financial results and related matters. The conference call can be accessed via telephone by dialing 1-866-783-2144 (toll-free U.S.) or 1-857-350-1603 (international) and entering the pass code 24729846#. Those who intend to participate in the conference call should register at least ten minutes in advance to ensure access to the call. A telephone replay of the conference call will be available through Aug 20, 2010 by dialing 1-888-286-8010 (toll-free U.S) or 1-617-801-6888 (international) and entering the pass code 52740213#.

This conference call will also be available through a live audio webcast accessible through the Investor Relations section of the Company’s website located at www.validusholdings.com. A replay of the webcast will be available at the Investor Relations section of the Company’s website through Aug 20, 2010. In addition, a financial supplement relating to our financial results for the three and six months ended June 30, 2010 is available in the Investor Relations section of the Company’s website.

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”). Validus Re is a Bermuda based reinsurer focused on short-tail lines of reinsurance. Talbot is the Bermuda parent of the specialty insurance group primarily operating within the Lloyd’s insurance market through Syndicate 1183.

Validus Holdings, Ltd. 29 Richmond Road, Pembroke, Bermuda HM08
Tel: 441.278.9000 Fax: 441.278.9090
www.validusholdings.com

Validus Holdings, Ltd.
Consolidated Balance Sheets
As at June 30, 2010 (unaudited) and December 31, 2009
(Expressed in thousands of U.S. dollars, except share and per share information)


	June 30,			December 31,
	2010			2009
	(unaudited)
Assets
Fixed maturities, at fair value (amortized cost: 2010 - $4,924,447; 2009 - $4,870,395)	$	4,975,019		$	4,869,378
Short-term investments, at fair value (amortized cost: 2010 - $269,782; 2009 - $482,632)		269,782			481,766
Other investments, at fair value (amortized cost: 2010 - $24,948; 2009 - $35,941)		26,068			37,615
Cash and cash equivalents		492,489			387,585

Total investments and cash		5,763,358			5,776,344
Premiums receivable		931,670			551,616
Deferred acquisition costs		165,957			112,329
Prepaid reinsurance premiums		185,771			73,164
Securities lending collateral		99,224			90,350
Loss reserves recoverable		193,604			181,765
Paid losses recoverable		24,133			14,782
Net receivable for investments sold		25,542			—
Income taxes recoverable		1,171			2,043
Intangible assets		120,975			123,055
Goodwill		20,393			20,393
Accrued investment income		38,643			38,077
Other assets		44,182			35,222

Total assets	$	7,614,623		$	7,019,140


Liabilities
Reserve for losses and loss expenses	$	1,978,130		$	1,622,134
Unearned premiums		1,176,603			724,104
Reinsurance balances payable		98,740			65,414
Securities lending payable		100,000			90,106
Deferred income taxes		26,200			24,508
Net payable for investments purchased		—			44,145
Accounts payable and accrued expenses		95,404			127,809
Senior notes payable		246,820			—
Debentures payable		289,800			289,800

Total liabilities		4,011,697			2,988,020

Commitments and contingent liabilities

Shareholders’ equity
Common shares, 571,428,571 authorized, par value $0.175 Issued and outstanding (including treasury shares) (2010 - 111,407,993; 2009 - 128,459,478)		23,101			23,033
Treasury shares (2010 - 20,598,594; 2009 - 3,156,871)		(3,605	)		(553	)
Additional paid-in-capital		2,247,995			2,675,680
Accumulated other comprehensive (loss)		(6,726	)		(4,851	)
Retained earnings		1,342,161			1,337,811

Total shareholders’ equity		3,602,926			4,031,120


Total liabilities and shareholders’ equity	$	7,614,623		$	7,019,140

Validus Holdings, Ltd. 29 Richmond Road, Pembroke, Bermuda HM08
Tel: 441.278.9000 Fax: 441.278.9090
www.validusholdings.com

Validus Holdings, Ltd.
Consolidated Statements of Operations
For the three and six months ended June 30, 2010 and 2009 (unaudited)
(Expressed in thousands of U.S. dollars, except share and per share information)


	Three Months Ended June 30,						Six Months Ended June 30,
(Dollars in thousands)	2010			2009			2010			2009
Gross premiums written	$	516,861		$	425,032		$	1,387,795		$	1,034,924
Reinsurance premiums ceded		(67,726	)		(62,291	)		(158,465	)		(134,803	)

Net premiums written		449,135			362,741			1,229,330			900,121
Change in unearned premiums		(11,191	)		(34,541	)		(333,692	)		(253,162	)

Net premiums earned		437,944			328,200			895,638			646,959

Losses and loss expenses		194,894			124,751			673,425			256,585
Policy acquisition costs		74,126			64,438			150,302			125,887
General and administrative expenses		52,379			41,200			105,948			79,279
Share compensation expenses		6,846			5,632			13,422			12,986

Total underwriting deductions		328,245			236,021			943,097			474,737

Underwriting income (loss)		109,699			92,179			(47,459	)		172,222

Net investment income		34,809			26,963			69,108			53,735
Other income		2,697			1,017			3,585			1,774
Finance expenses		(13,218	)		(10,752	)		(28,369	)		(18,475	)

Operating income (loss) before taxes		133,987			109,407			(3,135	)		209,256
Tax (expense) benefit		(4,187	)		976			(3,490	)		1,502

Net operating income (loss)		129,800			110,383			(6,625	)		210,758

Net realized gains (losses) on investments		12,441			(2,650	)		23,839			(26,071	)
Net unrealized gains on investments		41,640			37,249			57,053			59,402
Foreign exchange (losses) gains		(4,099	)		8,432			(12,863	)		4,232
Transaction expenses		—			(15,851	)		—			(15,851	)

Net income	$	179,782		$	137,563		$	61,404		$	232,470

Selected ratios:
Net premiums written / Gross premiums written		86.9	%		85.3	%		88.6	%		87.0	%

Losses and loss expenses		44.5	%		38.0	%		75.2	%		39.7	%
Policy acquisition costs		16.9	%		19.6	%		16.8	%		19.5	%
General and administrative expenses		13.5	%		14.3	%		13.3	%		14.3	%

Expense ratio		30.4	%		33.9	%		30.1	%		33.8	%

Combined ratio		74.9	%		71.9	%		105.3	%		73.5	%

Validus Holdings, Ltd. 29 Richmond Road, Pembroke, Bermuda HM08
Tel: 441.278.9000 Fax: 441.278.9090
www.validusholdings.com

Validus Holdings, Ltd.
Non-GAAP Financial Measure Reconciliation
Net Operating Income, Net Operating Income per share,
and Annualized Net Operating Return on Average Equity
For the three and six months ended June 30, 2010 and 2009 (unaudited)
(Expressed in thousands of U.S. dollars, except share and per share information)


	Three months ended June 30,						Six months ended June 30,
	2010			2009			2010			2009
Validus Re
Gross premiums written	$	284,328		$	199,560		$	924,623		$	609,686
Reinsurance premiums ceded		(41,175	)		(43,070	)		(54,285	)		(56,359	)

Net premiums written		243,153			156,490			870,338			553,327
Change in unearned premiums		18,888			7,207			(324,376	)		(215,183	)

Net premiums earned		262,041			163,697			545,962			338,144
Losses and loss expenses		123,793			41,121			472,713			96,583
Policy acquisition costs		37,979			29,120			81,482			57,697
General and administrative expenses		10,983			14,149			27,295			27,941
Share compensation expenses		1,749			1,548			3,378			3,220

Total underwriting deductions		174,504			85,938			584,868			185,441

Underwriting income (loss)		87,537			77,759			(38,906	)		152,703


Talbot
Gross premiums written	$	253,710		$	235,113		$	524,251		$	463,033
Reinsurance premiums ceded		(47,728	)		(28,862	)		(165,259	)		(116,239	)

Net premiums written		205,982			206,251			358,992			346,794
Change in unearned premiums		(30,079	)		(41,748	)		(9,316	)		(37,979	)

Net premiums earned		175,903			164,503			349,676			308,815
Losses and loss expenses		71,101			83,630			200,712			160,002
Policy acquisition costs		38,647			36,114			73,592			69,271
General and administrative expenses		24,960			21,927			50,508			42,141
Share compensation expenses		1,468			2,098			3,027			4,433

Total underwriting deductions		136,176			143,769			327,839			275,847

Underwriting income		39,727			20,734			21,837			32,968


Corporate & Eliminations
Gross premiums written	$	(21,177	)	$	(9,641	)	$	(61,079	)	$	(37,795	)
Reinsurance premiums ceded		21,177			9,641			61,079			37,795

Net premiums written		—			—			—			—
Change in unearned premiums		—			—			—			—

Net premiums earned		—			—			—			—
Losses and loss expenses		—			—			—			—
Policy acquisition costs		(2,500	)		(796	)		(4,772	)		(1,081	)
General and administrative expenses		16,436			5,124			28,145			9,197
Share compensation expenses		3,629			1,986			7,017			5,333

Total underwriting deductions		17,565			6,314			30,390			13,449


Total underwriting income (loss)	$	109,699		$	92,179		$	(47,459	)	$	172,222

Validus Holdings, Ltd. 29 Richmond Road, Pembroke, Bermuda HM08
Tel: 441.278.9000 Fax: 441.278.9090
www.validusholdings.com


	Three months ended						Six months ended
	June 30,			June 30,			June 30,			June 30,
	2010			2009			2010			2009

Net income	$	179,782		$	137,563		$	61,404		$	232,470
Adjustments for:
Transaction expenses		—			15,851			—			15,851
Net realized (gains) losses on investments		(12,441	)		2,650			(23,839	)		26,071
Net unrealized (gains) on investments		(41,640	)		(37,249	)		(57,053	)		(59,402	)
Foreign exchange losses (gains)		4,099			(8,432	)		12,863			(4,232	)

Net operating income (loss)		129,800			110,383			(6,625	)		210,758
less: Dividends and distributions
declared on outstanding warrants		(1,749	)		(1,590	)		(3,498	)		(3,326	)

Net operating income (loss), adjusted	$	128,051		$	108,793		$	(10,123	)	$	207,432


Net income per share — diluted	$	1.44		$	1.74		$	0.48		$	2.94
Adjustments for:
Transaction expenses		—			0.20			—			0.20
Net realized (gains) losses on investments		(0.10	)		0.03			(0.19	)		0.33
Net unrealized (gains) on investments		(0.33	)		(0.47	)		(0.44	)		(0.75	)
Foreign exchange losses (gains)		0.03			(0.10	)		0.10			(0.05	)

Net operating income (loss) per share — diluted	$	1.04		$	1.40		$	(0.05	)	$	2.67


Weighted average number of common shares and common share equivalents — diluted		125,152,300			78,942,065			128,182,164			79,022,355

Average shareholders’ equity		3,681,246			2,087,478			3,797,870			2,037,896

Annualized operating return on average equity		14.1	%		21.2	%		(0.3	)%		20.7	%

Validus Holdings, Ltd. 29 Richmond Road, Pembroke, Bermuda HM08
Tel: 441.278.9000 Fax: 441.278.9090
www.validusholdings.com

Validus Holdings, Ltd.
Non-GAAP Financial Measure Reconciliation
Diluted Book Value Per Common Share
As at June 30, 2010 and December 31, 2009
(Expressed in thousands of U.S. dollars, except share and per share information)


	As at June 30, 2010
							Book Value Per
	Equity Amount		Shares		Exercise Price		Share
Book value per common share
Total shareholders’ equity	$	3,602,926		111,407,993			$	32.34


Diluted book value per common share
Total shareholders’ equity		3,602,926		111,407,993
Assumed exercise of outstanding warrants		139,576		7,952,138	$	17.55
Assumed exercise of outstanding stock options		63,920		3,222,164	$	19.84
Unvested restricted shares		—		3,058,281

Diluted book value per common share	$	3,806,422		125,640,576			$	30.30


	As at December 31, 2009
							Book Value Per
	Equity Amount		Shares		Exercise Price		Share
Book value per common share
Total shareholders’ equity	$	4,031,120		128,459,478			$	31.38


Diluted book value per common share
Total shareholders’ equity		4,031,120		128,459,478
Assumed exercise of outstanding warrants		139,576		7,952,138	$	17.55
Assumed exercise of outstanding stock options		65,159		3,278,015	$	19.88
Unvested restricted shares		—		3,020,651

Diluted book value per common share	$	4,235,855		142,710,282			$	29.68

Validus Holdings, Ltd. 29 Richmond Road, Pembroke, Bermuda HM08
Tel: 441.278.9000 Fax: 441.278.9090
www.validusholdings.com

Cautionary Note Regarding Forward-Looking Statements

This press release may include forward-looking statements, both with respect to the Company and its 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, many of which are beyond the Company’s control. Accordingly, there are or will be important factors that could cause actual results to differ materially from those indicated in such statements and, therefore, 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 Validus’ risk management and loss limitation methods; 4) cyclicality of demand and pricing in the insurance and reinsurance markets; 5) Validus’ limited operating history; 6) Validus’ ability to implement its business strategy during “soft” as well as “hard” markets; 7) adequacy of Validus’ 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) Validus’ 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 businesses Validus may acquire or new business ventures Validus may start; 15) the effect on Validus’ investment portfolios 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 Validus’ most recent reports on Form 10-K and Form 10-Q and other documents of the Company on file with or furnished to the Securities and Exchange Commission (“SEC”). Any forward-looking statements made in this press release are qualified by these cautionary statements, and there can be no assurance that the actual results or developments anticipated by Validus will be realized or, even if substantially realized, that they will have the expected consequences to, or effects on, Validus or its business or operations. Except as required by law, the parties undertake no obligation to update publicly or revise any forward-looking statement, whether as a result of new information, future developments or otherwise.

Non-GAAP Financial Measures

In presenting the Company’s results, management has included and discussed certain schedules containing net operating income (loss), net operating income (loss) per share, underwriting income (loss), annualized net operating return on average equity and diluted book value per common share that are not calculated under standards or rules that comprise U.S. GAAP. Such measures are referred to as non-GAAP. Non-GAAP measures may be defined or calculated differently by other companies. These measures should not be viewed as a substitute for those determined in accordance with U.S. GAAP. A reconciliation of net operating income to net income, the most comparable U.S. GAAP financial measure, is presented in the section above entitled “Net Operating Income, Net Operating Income per share and Annualized Net Operating Return on Average Equity”. A reconciliation of underwriting income to net income, the most comparable U.S. GAAP financial measure, is presented in the “Consolidated Statements of Operations” above. Underwriting income indicates the performance of the Company’s core underwriting function, excluding revenues and expenses. The Company believes the reporting of underwriting income enhances the understanding of our results by highlighting the underlying profitability of the Company’s core insurance and

Validus Holdings, Ltd. 29 Richmond Road, Pembroke, Bermuda HM08
Tel: 441.278.9000 Fax: 441.278.9090
www.validusholdings.com

reinsurance business. Underwriting profitability is influenced significantly by earned premium growth, adequacy of the Company’s pricing and loss frequency and severity. Underwriting profitability over time is also influenced by the Company’s underwriting discipline, which seeks to manage exposure to loss through favorable risk selection and diversification, its management of claims, its use of reinsurance and its ability to manage its expense ratio, which it accomplishes through its management of acquisition costs and other underwriting expenses. The Company believes that underwriting income provides investors with a valuable measure of profitability derived from underwriting activities.

Annualized net operating return on average equity is presented in the section above entitled “Net Operating Income, Net Operating Income per share and Annualized Net Operating Return on Average Equity”. A reconciliation of diluted book value per share to book value per share, the most comparable U.S. GAAP financial measure, is presented in the section above entitled “Diluted Book Value Per Share”. Net operating income (loss) is calculated based on net income (loss) excluding net realized gains (losses), net unrealized gains (losses) on investments, gains (losses) arising from translation of non-US$ denominated balances and non-recurring items. Realized gains (losses) from the sale of investments are driven by the timing of the disposition of investments, not by our operating performance. Gains (losses) arising from translation of non-US$ denominated balances are unrelated to our underlying business.

Validus Holdings, Ltd. 29 Richmond Road, Pembroke, Bermuda HM08
Tel: 441.278.9000 Fax: 441.278.9090
www.validusholdings.com