XML 32 R32.htm IDEA: XBRL DOCUMENT  v2.3.0.11
Segment information (Tables)
 6 Months Ended
Jun. 30, 2011
Segment information [Abstract]  
Results of operating segments and corporate segment
     The following tables summarize the results of our operating segments and corporate segment:
                                 
                    Corporate &        
Three Months Ended June 30, 2011   Validus Re     Talbot     Eliminations     Total  
Underwriting income
                               
Gross premiums written
  $ 341,651     $ 276,886     $ (13,150 )   $ 605,387  
Reinsurance premiums ceded
    (98,218 )     (47,278 )     13,150       (132,346 )
 
                       
Net premiums written
    243,433       229,608       —       473,041  
Change in unearned premiums
    (10,755 )     (36,646 )     —       (47,401 )
 
                       
Net premiums earned
    232,678       192,962       —       425,640  
 
                       
 
                               
Underwriting deductions
                               
Losses and loss expenses
    94,035       113,272       —       207,307  
Policy acquisition costs
    35,769       42,307       154       78,230  
General and administrative expenses
    15,458       34,718       10,665       60,841  
Share compensation expenses
    1,823       2,026       3,779       7,628  
 
                       
Total underwriting deductions
    147,085       192,323       14,598       354,006  
 
                       
 
                               
Underwriting income (loss)
  $ 85,593     $ 639     $ (14,598 )   $ 71,634  
 
                               
Net investment income
    22,389       6,372       (2,267 )     26,494  
Other income
    854       1,967       (2,226 )     595  
Finance expenses
    (4,502 )     —       (11,859 )     (16,361 )
 
                       
Operating income (loss) before taxes
    104,334       8,978       (30,950 )     82,362  
Tax (expense) benefit
    (4 )     (208 )     241       29  
 
                       
Net operating income (loss)
  $ 104,330     $ 8,770     $ (30,709 )   $ 82,391  
 
                               
Net realized gains on investments
    9,552       2,000       —       11,552  
Net unrealized gains on investments
    14,557       3,969       —       18,526  
Foreign exchange (losses) gains
    (5,337 )     3,410       (64 )     (1,991 )
 
                               
 
                       
Net income (loss)
  $ 123,102     $ 18,149     $ (30,773 )   $ 110,478  
 
                               
Net income attributable to noncontrolling interest
    (594 )     —       —       (594 )
 
                       
Net income available (attributable) to Validus
  $ 122,508     $ 18,149     $ (30,773 )   $ 109,884  
 
                       
 
                               
Selected ratios:
                               
Net premiums written / Gross premiums written
    71.3 %     82.9 %             78.1 %
 
                               
Losses and loss expenses
    40.4 %     58.7 %             48.7 %
 
                               
Policy acquisition costs
    15.4 %     21.9 %             18.4 %
General and administrative expenses (a)
    7.4 %     19.0 %             16.1 %
 
                         
Expense ratio
    22.8 %     40.9 %             34.5 %
 
                         
 
                               
Combined ratio
    63.2 %     99.6 %             83.2 %
 
                         
 
                               
Total assets
  $ 5,411,663     $ 2,759,850     $ 88,275     $ 8,259,788  
 
                       
 
(a)   Ratios are based on net premiums earned. The general and administrative expense ratio includes share compensation expenses.
                                 
                    Corporate &        
Three Months Ended June 30, 2010   Validus Re     Talbot     Eliminations     Total  
Underwriting income
                               
Gross premiums written
  $ 284,328     $ 253,710     $ (21,177 )   $ 516,861  
Reinsurance premiums ceded
    (41,175 )     (47,728 )     21,177       (67,726 )
 
                       
Net premiums written
    243,153       205,982       —       449,135  
Change in unearned premiums
    18,888       (30,079 )     —       (11,191 )
 
                       
Net premiums earned
    262,041       175,903       —       437,944  
 
                       
 
                               
Underwriting deductions
                               
Losses and loss expenses
    123,793       71,101       —       194,894  
Policy acquisition costs
    37,979       38,647       (2,500 )     74,126  
General and administrative expenses
    10,983       24,960       16,436       52,379  
Share compensation expenses
    1,749       1,468       3,629       6,846  
 
                       
Total underwriting deductions
    174,504       136,176       17,565       328,245  
 
                       
 
                               
Underwriting income (loss)
  $ 87,537     $ 39,727     $ (17,565 )   $ 109,699  
 
                               
Net investment income
    29,914       7,251       (2,356 )     34,809  
Other income
    1,477       3,084       (1,864 )     2,697  
Finance expenses
    (1,107 )     105       (12,216 )     (13,218 )
 
                       
Operating income (loss) before taxes
    117,821       50,167       (34,001 )     133,987  
Tax (expense) benefit
    (94 )     (4,094 )     1       (4,187 )
 
                       
Net operating income (loss)
  $ 117,727     $ 46,073     $ (34,000 )   $ 129,800  
 
                               
Net realized gains on investments
    10,363       2,078       —       12,441  
Net unrealized gains on investments
    35,697       5,943       —       41,640  
Foreign exchange (losses)
    (843 )     (3,243 )     (13 )     (4,099 )
 
                               
 
                       
Net income (loss)
  $ 162,944     $ 50,851     $ (34,013 )   $ 179,782  
 
                               
Net income attributable to noncontrolling interest
    —     —       —     —  
 
                       
Net income (loss) available (attributable) to Validus
  $ 162,944     $ 50,851     $ (34,013 )   $ 179,782  
 
                       
 
                               
Selected ratios:
                               
Net premiums written / Gross premiums written
    85.5 %     81.2 %             86.9 %
 
                               
Losses and loss expenses
    47.2 %     40.4 %             44.5 %
 
                               
Policy acquisition costs
    14.5 %     22.0 %             16.9 %
General and administrative expenses (a)
    4.9 %     15.0 %             13.5 %
 
                         
Expense ratio
    19.4 %     37.0 %             30.4 %
 
                         
 
                               
Combined ratio
    66.6 %     77.4 %             74.9 %
 
                         
 
                               
Total assets
  $ 5,057,693     $ 2,507,586     $ 49,344     $ 7,614,623  
 
                       
 
(a)   Ratios are based on net premiums earned. The general and administrative expense ratio includes share compensation expenses.
                                 
                    Corporate &        
Six Months Ended June 30, 2011   Validus Re     Talbot     Eliminations     Total  
Underwriting income
                               
Gross premiums written
  $ 952,889     $ 539,943     $ (37,549 )   $ 1,455,283  
Reinsurance premiums ceded
    (145,023 )     (134,692 )     37,549       (242,166 )
 
                       
Net premiums written
    807,866       405,251       —       1,213,117  
Change in unearned premiums
    (322,879 )     (35,065 )     —       (357,944 )
 
                       
Net premiums earned
    484,987       370,186       —       855,173  
 
                       
 
                               
Underwriting deductions
                               
Losses and loss expenses
    404,579       278,926       —       683,505  
Policy acquisition costs
    75,835       79,523       168       155,526  
General and administrative expenses
    26,115       63,440       19,763       109,318  
Share compensation expenses
    4,928       4,745       10,004       19,677  
 
                       
Total underwriting deductions
    511,457       426,634       29,935       968,026  
 
                       
 
                               
Underwriting (loss)
  $ (26,470 )   $ (56,448 )   $ (29,935 )   $ (112,853 )
 
                               
Net investment income
    48,040       12,962       (4,533 )     56,469  
Other income
    2,287       4,984       (5,070 )     2,201  
Finance expenses
    (6,215 )     (63 )     (24,084 )     (30,362 )
 
                       
Operating income (loss) before taxes
    17,642       (38,565 )     (63,622 )     (84,545 )
Tax (expense) benefit
    (6 )     1,585       (91 )     1,488  
 
                       
Net operating income (loss)
  $ 17,636     $ (36,980 )   $ (63,713 )   $ (83,057 )
 
                               
Net realized gains on investments
    13,471       4,460       —       17,931  
Net unrealized gains (losses) on investments
    6,042       (344 )     —       5,698  
Foreign exchange (losses) gains
    (9,697 )     7,311       (72 )     (2,458 )
 
                       
 
                               
Net income (loss)
  $ 27,452     $ (25,553 )   $ (63,785 )   $ (61,886 )
 
                               
Net income attributable to noncontrolling interest
    (594 )     —       —       (594 )
 
                       
Net income (loss) available (attributable) to Validus
  $ 26,858     $ (25,553 )   $ (63,785 )   $ (62,480 )
 
                       
 
                               
Selected ratios:
                               
Net premiums written / Gross premiums written
    84.8 %     75.1 %             83.4 %
 
                               
Losses and loss expenses
    83.4 %     75.3 %             79.9 %
 
                               
Policy acquisition costs
    15.6 %     21.5 %             18.2 %
General and administrative expenses (a)
    6.4 %     18.4 %             15.1 %
 
                         
Expense ratio
    22.0 %     39.9 %             33.3 %
 
                         
 
                               
Combined ratio
    105.4 %     115.2 %             113.2 %
 
                         
 
                               
Total assets
  $ 5,411,663     $ 2,759,850     $ 88,275     $ 8,259,788  
 
                       
 
(a)   Ratios are based on net premiums earned. The general and administrative expense ratio includes share compensation expenses.
                                 
                    Corporate &        
Six Months Ended June 30, 2010   Validus Re     Talbot     Eliminations     Total  
Underwriting income
                               
Gross premiums written
  $ 924,623     $ 524,251     $ (61,079 )   $ 1,387,795  
Reinsurance premiums ceded
    (54,285 )     (165,259 )     61,079       (158,465 )
 
                       
Net premiums written
    870,338       358,992       —       1,229,330  
Change in unearned premiums
    (324,376 )     (9,316 )     —       (333,692 )
 
                       
Net premiums earned
    545,962       349,676       —       895,638  
 
                       
 
                               
Underwriting deductions
                               
Losses and loss expenses
    472,713       200,712       —       673,425  
Policy acquisition costs
    81,482       73,592       (4,772 )     150,302  
General and administrative expenses
    27,295       50,508       28,145       105,948  
Share compensation expenses
    3,378       3,027       7,017       13,422  
 
                       
Total underwriting deductions
    584,868       327,839       30,390       943,097  
 
                       
 
                               
Underwriting (loss) income
  $ (38,906 )   $ 21,837     $ (30,390 )   $ (47,459 )
 
                               
Net investment income
    59,159       14,571       (4,622 )     69,108  
Other income
    2,555       5,059       (4,029 )     3,585  
Finance expenses
    (2,400 )     (3,140 )     (22,829 )     (28,369 )
 
                       
Operating income (loss) before taxes
    20,408       38,327       (61,870 )     (3,135 )
Tax (expense)
    (185 )     (3,299 )     (6 )     (3,490 )
 
                       
Net operating income (loss)
  $ 20,223     $ 35,028     $ (61,876 )   $ (6,625 )
 
                               
Net realized gains on investments
    20,142       3,697       —       23,839  
Net unrealized gains (losses) on investments
    47,892       9,161       —       57,053  
Foreign exchange (losses)
    (5,982 )     (6,842 )     (39 )     (12,863 )
 
                       
 
                               
Net income (loss)
  $ 82,275     $ 41,044     $ (61,915 )   $ 61,404  
 
                               
Net income attributable to noncontrolling interest
    —       —       —       —  
 
                       
Net income (loss) available (attributable) to Validus
  $ 82,275     $ 41,044     $ (61,915 )   $ 61,404  
 
                       
 
                               
Selected ratios:
                               
Net premiums written / Gross premiums written
    94.1 %     68.5 %             88.6 %
 
                               
Losses and loss expenses
    86.6 %     57.4 %             75.2 %
 
                               
Policy acquisition costs
    14.9 %     21.0 %             16.8 %
General and administrative expenses (a)
    5.6 %     15.3 %             13.3 %
 
                         
Expense ratio
    20.5 %     36.3 %             30.1 %
 
                         
Combined ratio
    107.1 %     93.7 %             105.3 %
 
                         
 
                               
Total assets
  $ 5,057,693     $ 2,507,586     $ 49,344     $ 7,614,623  
 
                       
 
(a)   Ratios are based on net premiums earned. The general and administrative expense ratio includes share compensation expenses.
Gross premiums written allocated to the territory of coverage exposure
     The Company’s exposures are generally diversified across geographic zones. The following tables set forth the gross premiums written allocated to the territory of coverage exposure for the periods indicated:
                                         
    Three Months Ended June 30, 2011  
    Gross premiums written  
    Validus Re     Talbot     Eliminations     Total     %  
United States
  $ 261,364     $ 34,181     $ (2,307 )   $ 293,238       48.5 %
Worldwide excluding United States (a)
    2,580       57,204       (257 )     59,527       9.8 %
Europe
    10,729       18,935       (59 )     29,605       4.9 %
Latin America and Caribbean
    11,432       22,265       (8,942 )     24,755       4.1 %
Japan
    23,871       2,216       —       26,087       4.3 %
Canada
    10       2,443       (10 )     2,443       0.4 %
Rest of the world (b)
    8,939       —       —       8,939       1.5 %
 
                             
Sub-total, non United States
    57,561       103,063       (9,268 )     151,356       25.0 %
Worldwide including United States (a)
    12,584       15,506       (40 )     28,050       4.6 %
Marine and Aerospace (c)
    10,142       124,136       (1,535 )     132,743       21.9 %
 
                             
Total
  $ 341,651     $ 276,886     $ (13,150 )   $ 605,387       100.0 %
 
                             
                                         
    Three Months Ended June 30, 2010  
    Gross premiums written  
    Validus Re     Talbot     Eliminations     Total     %  
United States
  $ 186,653     $ 29,691     $ (2,020 )   $ 214,324       41.5 %
Worldwide excluding United States (a)
    4,830       58,806       (2,086 )     61,550       11.9 %
Europe
    10,757       12,832       (504 )     23,085       4.4 %
Latin America and Caribbean
    15,036       29,368       (12,766 )     31,638       6.1 %
Japan
    19,250       2,901       (72 )     22,079       4.3 %
Canada
    72       3,367       (72 )     3,367       0.7 %
Rest of the world (b)
    25,168       —       —       25,168       4.9 %
 
                             
Sub-total, non United States
    75,113       107,274       (15,500 )     166,887       32.3 %
Worldwide including United States (a)
    2,032       15,911       (504 )     17,439       3.3 %
Marine and Aerospace (c)
    20,530       100,834       (3,153 )     118,211       22.9 %
 
                             
Total
  $ 284,328     $ 253,710     $ (21,177 )   $ 516,861       100.0 %
 
                             
 
(a)   Represents risks in two or more geographic zones.
 
(b)   Represents risks in one geographic zone.
 
(c)   Not classified as geographic area as marine and aerospace risks can span multiple geographic areas and are not fixed locations in some instances.
 
   
     The Company’s exposures are generally diversified across geographic zones. The following tables set forth the gross premiums written allocated to the territory of coverage exposure for the periods indicated:
                                         
    Six Months Ended June 30, 2011  
    Gross premiums written  
    Validus Re     Talbot     Eliminations     Total     %  
United States
  $ 453,729     $ 62,012     $ (4,204 )   $ 511,537       35.2 %
Worldwide excluding United States (a)
    29,558       125,171       (2,969 )     151,760       10.4 %
Europe
    69,695       34,944       (561 )     104,078       7.2 %
Latin America and Caribbean
    36,551       40,533       (22,571 )     54,513       3.7 %
Japan
    34,069       2,756       (100 )     36,725       2.5 %
Canada
    110       6,251       (110 )     6,251       0.4 %
Rest of the world (b)
    44,996       —       —       44,996       3.1 %
 
                             
Sub-total, non United States
    214,979       209,655       (26,311 )     398,323       27.3 %
Worldwide including United States (a)
    80,780       26,036       (542 )     106,274       7.3 %
Marine and Aerospace (c)
    203,401       242,240       (6,492 )     439,149       30.2 %
 
                             
Total
  $ 952,889     $ 539,943     $ (37,549 )   $ 1,455,283       100.0 %
 
                             
                                         
    Six Months Ended June 30, 2010  
    Gross premiums written  
    Validus Re     Talbot     Eliminations     Total     %  
United States
  $ 420,220     $ 54,974     $ (5,491 )   $ 469,703       33.8 %
Worldwide excluding United States (a)
    44,594       134,824       (5,918 )     173,500       12.5 %
Europe
    91,233       28,370       (961 )     118,642       8.5 %
Latin America and Caribbean
    43,775       46,595       (28,553 )     61,817       4.5 %
Japan
    19,900       3,609       (137 )     23,372       1.7 %
Canada
    137       7,003       (137 )     7,003       0.5 %
Rest of the world (b)
    25,168       —       —       25,168       1.8 %
 
                             
Sub-total, non United States
    224,807       220,401       (35,706 )     409,502       29.5 %
Worldwide including United States (a)
    78,267       28,687       (2,234 )     104,720       7.6 %
Marine and Aerospace (c)
    201,329       220,189       (17,648 )     403,870       29.1 %
 
                             
Total
  $ 924,623     $ 524,251     $ (61,079 )   $ 1,387,795       100.0 %
 
                             
 
(a)   Represents risks in two or more geographic zones.
 
(b)   Represents risks in one geographic zone.
 
(c)   Not classified as geographic area as marine and aerospace risks can span multiple geographic areas and are not fixed locations in some instances.