Segment information (Tables)

9 Months Ended

Sep. 30, 2016

Segment Reporting [Abstract]

Summary of results of operating segments and Corporate

The following tables summarize the results of our operating segments and "Corporate and Investments":

	Three Months Ended September 30,						Nine Months Ended September 30,
Validus Re Segment Information	2016			2015			2016			2015
Underwriting revenues
Gross premiums written	$	94,741		$	103,297		$	1,072,219		$	1,112,410
Reinsurance premiums ceded	(15,967		)	(15,846		)	(111,658		)	(149,001		)
Net premiums written	78,774			87,451			960,561			963,409
Change in unearned premiums	149,705			153,210			(241,129		)	(205,110		)
Net premiums earned	228,479			240,661			719,432			758,299
Other insurance related income (loss)	58			2,569			(107		)	3,318
Total underwriting revenues	228,537			243,230			719,325			761,617
Underwriting deductions
Losses and loss expenses	98,425			120,958			313,432			357,491
Policy acquisition costs	42,837			42,989			127,660			128,909
General and administrative expenses	17,528			19,964			52,579			58,254
Share compensation expenses	2,695			2,691			8,371			7,665
Total underwriting deductions	161,485			186,602			502,042			552,319
Underwriting income	$	67,052		$	56,628		$	217,283		$	209,298
Selected ratios:
Ratio of net to gross premiums written	83.1		%	84.7		%	89.6		%	86.6		%
Losses and loss expense ratio	43.1		%	50.3		%	43.6		%	47.1		%
Policy acquisition cost ratio	18.7		%	17.9		%	17.7		%	17.0		%
General and administrative expense ratio (a)	8.9		%	9.4		%	8.5		%	8.7		%
Expense ratio	27.6		%	27.3		%	26.2		%	25.7		%
Combined ratio	70.7		%	77.6		%	69.8		%	72.8		%

(a) The general and administrative expense ratio includes share compensation expenses.

	Three Months Ended September 30,						Nine Months Ended September 30,
Talbot Segment Information	2016			2015			2016			2015
Underwriting revenues
Gross premiums written	$	189,674		$	226,025		$	752,058		$	789,148
Reinsurance premiums ceded	(22,877		)	(35,823		)	(137,496		)	(164,144		)
Net premiums written	166,797			190,202			614,562			625,004
Change in unearned premiums	32,258			15,942			(7,166		)	9,167
Net premiums earned	199,055			206,144			607,396			634,171
Other insurance related income	99			470			389			564
Total underwriting revenues	199,154			206,614			607,785			634,735
Underwriting deductions
Losses and loss expenses	109,860			94,414			319,271			268,512
Policy acquisition costs	46,488			44,575			134,444			141,338
General and administrative expenses	32,333			43,292			109,929			115,341
Share compensation expenses	3,163			3,214			9,955			9,195
Total underwriting deductions	191,844			185,495			573,599			534,386
Underwriting income	$	7,310		$	21,119		$	34,186		$	100,349
Selected ratios:
Ratio of net to gross premiums written	87.9		%	84.2		%	81.7		%	79.2		%
Losses and loss expense ratio	55.2		%	45.8		%	52.6		%	42.4		%
Policy acquisition cost ratio	23.4		%	21.6		%	22.1		%	22.3		%
General and administrative expense ratio (a)	17.8		%	22.6		%	19.7		%	19.6		%
Expense ratio	41.2		%	44.2		%	41.8		%	41.9		%
Combined ratio	96.4		%	90.0		%	94.4		%	84.3		%

(a) The general and administrative expense ratio includes share compensation expenses.

	Three Months Ended September 30,						Nine Months Ended September 30,
Western World Segment Information	2016			2015			2016			2015
Underwriting revenues
Gross premiums written	$	85,260		$	70,871		$	236,190		$	207,372
Reinsurance premiums ceded	(6,202		)	(4,716		)	(15,347		)	(13,390		)
Net premiums written	79,058			66,155			220,843			193,982
Change in unearned premiums	(8,260		)	(2,225		)	(22,890		)	2,948
Net premiums earned	70,798			63,930			197,953			196,930
Other insurance related income	219			248			696			787
Total underwriting revenues	71,017			64,178			198,649			197,717
Underwriting deductions
Losses and loss expenses	45,748			40,810			129,623			138,098
Policy acquisition costs	17,094			13,214			46,704			27,110
General and administrative expenses	10,171			9,587			33,704			29,137
Share compensation expenses	702			554			1,825			1,525
Total underwriting deductions	73,715			64,165			211,856			195,870
Underwriting (loss) income	$	(2,698	)	$	13		$	(13,207	)	$	1,847
Selected ratios:
Ratio of net to gross premiums written	92.7		%	93.3		%	93.5		%	93.5		%
Losses and loss expense ratio	64.6		%	63.8		%	65.5		%	70.1		%
Policy acquisition cost ratio	24.1		%	20.7		%	23.6		%	13.8		%
General and administrative expense ratio (a)	15.4		%	15.9		%	17.9		%	15.6		%
Expense ratio	39.5		%	36.6		%	41.5		%	29.4		%
Combined ratio	104.1		%	100.4		%	107.0		%	99.5		%

(a) The general and administrative expense ratio includes share compensation expenses.

	Three Months Ended September 30,						Nine Months Ended September 30,
AlphaCat Segment Information (a)	2016			2015			2016			2015
Revenues
Third party	$	7,025		$	5,762		$	14,843		$	14,622
Related party	1,373			1,738			2,592			4,058
Total revenues	8,398			7,500			17,435			18,680
Expenses
General and administrative expenses	3,324			4,124			7,557			8,883
Share compensation expenses	(107		)	141			167			440
Finance expenses	31			2,297			914			9,259
Foreign exchange losses (gains)	5			(11		)	17			(9		)
Total expenses	3,253			6,551			8,655			18,573
Income before investments from AlphaCat Funds and Sidecars	5,145			949			8,780			107
Investment income (loss) from AlphaCat Funds and Sidecars (b)
AlphaCat Sidecars	(72		)	1,445			593			3,886
AlphaCat ILS Funds - Lower Risk (c)	2,321			2,274			6,903			5,454
AlphaCat ILS Funds - Higher Risk (c)	2,479			1,807			5,607			6,608
BetaCat ILS Funds	1,303			1,007			2,979			1,241
PaCRe	—			(7,963		)	(23		)	(2,241		)
Total investment income (loss) from AlphaCat Funds and Sidecars	6,031			(1,430		)	16,059			14,948
Validus' share of AlphaCat segment income (loss)	$	11,176		$	(481	)	$	24,839		$	15,055
Supplemental information:
Gross premiums written
AlphaCat Sidecars	$	(112	)	$	2,079		$	(178	)	$	45,426
AlphaCat ILS Funds - Lower Risk (c)	2,049			1,653			112,241			90,088
AlphaCat ILS Funds - Higher Risk (c)	1,797			1,374			140,127			34,192
AlphaCat Direct (d)	679			4,785			18,476			4,785
Total gross premiums written	$	4,413		$	9,891		$	270,666		$	174,491

(a) The results of AlphaCat are presented on an asset manager basis, which is non-GAAP. A reconciliation of Validus' share of AlphaCat segment income to segmental income is presented in the tables below.

(b) The investment income from the AlphaCat funds and sidecars is based on equity accounting.

(c) Lower risk AlphaCat ILS funds have a maximum permitted portfolio expected loss of less than 7%, whereas higher risk AlphaCat ILS funds have a maximum permitted portfolio expected loss of greater than 7%. Expected loss represents the average annual loss over the set of simulation scenarios divided by the total limit.

(d) AlphaCat Direct includes direct investments from third party investors in AlphaCat Re.

	Three Months Ended September 30,						Nine Months Ended September 30,
Corporate and Investment Information	2016			2015			2016			2015
Investment income
Net investment income (a)	$	41,071		$	29,991		$	105,843		$	91,281
Operating expenses
General and administrative expenses	18,221			18,804			52,276			51,502
Share compensation expenses	4,048			3,383			12,147			9,454
Finance expenses (a)	14,317			15,143			42,637			45,623
Dividends on preferred shares	2,252			—			2,252			—
Tax expense	1,830			2,018			1,418			7,132
Total operating expenses	40,668			39,348			110,730			113,711
Other items
Net realized gains (losses) on investments (a)	4,080			(1,233		)	5,514			5,051
Change in net unrealized gains on investments (a)	4,652			1,765			81,782			2,508
Income (loss) from investment affiliate	453			2,482			(4,249		)	5,542
Foreign exchange (losses) gains (a)	(1,067		)	(2,331		)	11,628			(9,024		)
Other loss	(1,529		)	(1,970		)	(773		)	(2,578		)
Total other items	6,589			(1,287		)	93,902			1,499
Total corporate and investment information	$	6,992		$	(10,644	)	$	89,015		$	(20,931	)

(a) These items exclude the components which are included in Validus' share of AlphaCat and amounts which are consolidated from VIEs.

The following tables reconcile the results of our operating segments along with our corporate and investments function to the Consolidated results of the Company for the periods indicated:

	Three Months Ended September 30, 2016
	Validus Re Segment			Talbot Segment			Western World Segment			AlphaCat Segment and Consolidated VIEs			Corporate and Investments			Eliminations			Total
Underwriting revenues
Gross premiums written	$	94,741		$	189,674		$	85,260		$	4,413		$	—		$	(1,670	)	$	372,418
Reinsurance premiums ceded	(15,967		)	(22,877		)	(6,202		)	(1,630		)	—			1,670			(45,006		)
Net premiums written	78,774			166,797			79,058			2,783			—			—			327,412
Change in unearned premiums	149,705			32,258			(8,260		)	62,660			—			—			236,363
Net premiums earned	228,479			199,055			70,798			65,443			—			—			563,775
Other insurance related income	58			99			219			8,656			—			(8,113		)	919
Total underwriting revenues	228,537			199,154			71,017			74,099			—			(8,113		)	564,694
Underwriting deductions
Losses and loss expenses	98,425			109,860			45,748			4,361			—			—			258,394
Policy acquisition costs	42,837			46,488			17,094			7,075			—			(60		)	113,434
General and administrative expenses	17,528			32,333			10,171			12,255			18,221			(8,065		)	82,443
Share compensation expenses	2,695			3,163			702			(107		)	4,048			—			10,501
Total underwriting deductions	161,485			191,844			73,715			23,584			22,269			(8,125		)	464,772
Underwriting income (loss)	$	67,052		$	7,310		$	(2,698	)	$	50,515		$	(22,269	)	$	12		$	99,922
Other items (a)	—			—			—			1,221			(9,558		)	—			(8,337		)
Dividends on preferred shares	—			—			—			—			(2,252		)	—			(2,252		)
Net investment income	—			—			—			2,443			41,071			—			43,514
(Income) attributable to AlphaCat investors	—			—			—			(5,564		)	—			—			(5,564		)
Net (income) attributable to noncontrolling interest	—			—			—			(37,439		)	—			—			(37,439		)
Segmental income (loss)	$	67,052		$	7,310		$	(2,698	)	$	11,176		$	6,992		$	12
Net income available to Validus common shareholders																			$	89,844

(a) Other items includes finance expenses, tax expenses, foreign exchange gains (losses), net realized and change in net unrealized gains (losses) on investments, income from investment and operating affiliates and other income (loss).

	Three Months Ended September 30, 2015
	Validus Re Segment			Talbot Segment			Western World Segment			AlphaCat Segment and Consolidated VIEs			Corporate and Investments			Eliminations			Total
Underwriting revenues
Gross premiums written	$	103,297		$	226,025		$	70,871		$	9,891		$	—		$	(7,575	)	$	402,509
Reinsurance premiums ceded	(15,846		)	(35,823		)	(4,716		)	—			—			7,575			(48,810		)
Net premiums written	87,451			190,202			66,155			9,891			—			—			353,699
Change in unearned premiums	153,210			15,942			(2,225		)	34,385			—			—			201,312
Net premiums earned	240,661			206,144			63,930			44,276			—			—			555,011
Other insurance related income	2,569			470			248			7,719			—			(7,510		)	3,496
Total underwriting revenues	243,230			206,614			64,178			51,995			—			(7,510		)	558,507
Underwriting deductions
Losses and loss expenses	120,958			94,414			40,810			(172		)	—			—			256,010
Policy acquisition costs	42,989			44,575			13,214			4,606			—			(345		)	105,039
General and administrative expenses	19,964			43,292			9,587			12,419			18,804			(7,180		)	96,886
Share compensation expenses	2,691			3,214			554			141			3,383			—			9,983
Total underwriting deductions	186,602			185,495			64,165			16,994			22,187			(7,525		)	467,918
Underwriting income (loss)	$	56,628		$	21,119		$	13		$	35,001		$	(22,187	)	$	15		$	90,589
Other items (a)	—			—			—			(9,396		)	(18,448		)	—			(27,844		)
Dividends on preferred shares	—			—			—			—			—			—			—
Net investment income	—			—			—			1,581			29,991			—			31,572
(Income) attributable to AlphaCat investors	—			—			—			(1,438		)	—			—			(1,438		)
Net (income) attributable to noncontrolling interest	—			—			—			(26,229		)	—			—			(26,229		)
Segmental income (loss)	$	56,628		$	21,119		$	13		$	(481	)	$	(10,644	)	$	15
Net income available to Validus common shareholders																			$	66,650

(a) Other items includes finance expenses, tax expenses, foreign exchange gains (losses), net realized and change in net unrealized gains (losses) on investments, income from investment and operating affiliates and other income (loss).

	Nine Months Ended September 30, 2016
	Validus Re Segment			Talbot Segment			Western World Segment			AlphaCat Segment and Consolidated VIEs			Corporate and Investments			Eliminations			Total
Underwriting revenues
Gross premiums written	$	1,072,219		$	752,058		$	236,190		$	270,666		$	—		$	(21,882	)	$	2,309,251
Reinsurance premiums ceded	(111,658		)	(137,496		)	(15,347		)	(6,451		)	—			21,882			(249,070		)
Net premiums written	960,561			614,562			220,843			264,215			—			—			2,060,181
Change in unearned premiums	(241,129		)	(7,166		)	(22,890		)	(80,230		)	—			—			(351,415		)
Net premiums earned	719,432			607,396			197,953			183,985			—			—			1,708,766
Other insurance related (loss) income	(107		)	389			696			17,722			—			(16,300		)	2,400
Total underwriting revenues	719,325			607,785			198,649			201,707			—			(16,300		)	1,711,166
Underwriting deductions
Losses and loss expenses	313,432			319,271			129,623			27,645			—			—			789,971
Policy acquisition costs	127,660			134,444			46,704			19,762			—			23			328,593
General and administrative expenses	52,579			109,929			33,704			26,272			52,276			(16,421		)	258,339
Share compensation expenses	8,371			9,955			1,825			167			12,147			—			32,465
Total underwriting deductions	502,042			573,599			211,856			73,846			64,423			(16,398		)	1,409,368
Underwriting income (loss)	$	217,283		$	34,186		$	(13,207	)	$	127,861		$	(64,423	)	$	98		$	301,798
Other items (a)	—			—			—			2,433			49,847			—			52,280
Dividends on preferred shares	—			—			—			—			(2,252		)	—			(2,252		)
Net investment income	—			—			—			6,986			105,843			(597		)	112,232
(Income) attributable to AlphaCat investors	—			—			—			(16,278		)	—			—			(16,278		)
Net (income) attributable to noncontrolling interest	—			—			—			(96,163		)	—			—			(96,163		)
Segmental income (loss)	$	217,283		$	34,186		$	(13,207	)	$	24,839		$	89,015		$	(499	)
Net income available to Validus common shareholders																			$	351,617

(a) Other items includes finance expenses, tax expenses, foreign exchange gains (losses), net realized and change in net unrealized gains (losses) on investments, income from investment and operating affiliates and other income (loss).

	Nine Months Ended September 30, 2015
	Validus Re Segment			Talbot Segment			Western World Segment			AlphaCat Segment and Consolidated VIEs			Corporate and Investments			Eliminations			Total
Underwriting revenues
Gross premiums written	$	1,112,410		$	789,148		$	207,372		$	174,491		$	—		$	(35,520	)	$	2,247,901
Reinsurance premiums ceded	(149,001		)	(164,144		)	(13,390		)	(4,538		)	—			35,520			(295,553		)
Net premiums written	963,409			625,004			193,982			169,953			—			—			1,952,348
Change in unearned premiums	(205,110		)	9,167			2,948			(55,764		)	—			—			(248,759		)
Net premiums earned	758,299			634,171			196,930			114,189			—			—			1,703,589
Other insurance related income	3,318			564			787			19,175			—			(18,700		)	5,144
Total underwriting revenues	761,617			634,735			197,717			133,364			—			(18,700		)	1,708,733
Underwriting deductions
Losses and loss expenses	357,491			268,512			138,098			(1,016		)	—			—			763,085
Policy acquisition costs	128,909			141,338			27,110			11,783			—			(1,367		)	307,773
General and administrative expenses	58,254			115,341			29,137			28,478			51,502			(17,566		)	265,146
Share compensation expenses	7,665			9,195			1,525			440			9,454			—			28,279
Total underwriting deductions	552,319			534,386			195,870			39,685			60,956			(18,933		)	1,364,283
Underwriting income (loss)	$	209,298		$	100,349		$	1,847		$	93,679		$	(60,956	)	$	233		$	344,450
Other items (a)	—			—			—			(15,149		)	(51,256		)	—			(66,405		)
Dividends on preferred shares	—			—			—			—			—			—			—
Net investment income	—			—			—			4,931			91,281			—			96,212
(Income) attributable to AlphaCat investors	—			—			—			(1,438		)	—			—			(1,438		)
Net (income) attributable to noncontrolling interest	—			—			—			(66,968		)	—			—			(66,968		)
Segmental income (loss)	$	209,298		$	100,349		$	1,847		$	15,055		$	(20,931	)	$	233
Net income available to Validus																			$	305,851

(a) Other items includes finance expenses, tax expenses, foreign exchange gains (losses), net realized and change in net unrealized gains (losses) on investments, income from investment and operating affiliates and other income (loss).

Gross premiums written allocated to the territory of coverage exposure

The following tables set forth the gross premiums written by operating segment allocated to the territory of coverage exposure for the periods indicated:

	Gross Premiums Written
	Three Months Ended September 30, 2016
	Validus Re			Talbot		Western World		AlphaCat			Eliminations			Total		%
United States	$	31,345		$	19,937	$	85,260	$	1,837		$	(76	)	$	138,303	37.1	%
Worldwide excluding United States (a)	4,145			40,058		—		(288		)	(39		)	43,876		11.7	%
Australia and New Zealand	57			3,238		—		—			6			3,301		0.9	%
Europe	4,536			4,957		—		—			40			9,533		2.6	%
Latin America and Caribbean	17,036			25,173		—		—			(793		)	41,416		11.1	%
Japan	(33		)	997		—		—			7			971		0.3	%
Canada	149			2,015		—		—			(42		)	2,122		0.6	%
Rest of the world (b)	2,360			19,166		—		—			66			21,592		5.8	%
Sub-total, non United States	28,250			95,604		—		(288		)	(755		)	122,811		33.0	%
Worldwide including United States (a)	22,399			12,771		—		2,872			(838		)	37,204		10.0	%
Other locations non-specific (c)	12,747			61,362		—		(8		)	(1		)	74,100		19.9	%
Total	$	94,741		$	189,674	$	85,260	$	4,413		$	(1,670	)	$	372,418	100.0	%

	Gross Premiums Written
	Three Months Ended September 30, 2015
	Validus Re			Talbot		Western World		AlphaCat			Eliminations			Total		%
United States	$	34,968		$	21,886	$	70,871	$	4,076		$	(307	)	$	131,494	32.6	%
Worldwide excluding United States (a)	5,477			30,721		—		101			(208		)	36,091		9.0	%
Australia and New Zealand	473			3,520		—		—			(85		)	3,908		1.0	%
Europe	6,165			7,839		—		(8		)	(101		)	13,895		3.5	%
Latin America and Caribbean	17,079			27,249		—		—			(2,024		)	42,304		10.5	%
Japan	(10		)	1,149		—		—			(84		)	1,055		0.3	%
Canada	315			1,455		—		(30		)	(71		)	1,669		0.4	%
Rest of the world (b)	2,643			28,380		—		—			(521		)	30,502		7.6	%
Sub-total, non United States	32,142			100,313		—		63			(3,094		)	129,424		32.3	%
Worldwide including United States (a)	9,542			20,296		—		4,960			(4,072		)	30,726		7.6	%
Other locations non-specific (c)	26,645			83,530		—		792			(102		)	110,865		27.5	%
Total	$	103,297		$	226,025	$	70,871	$	9,891		$	(7,575	)	$	402,509	100.0	%

(a) Represents risks in two or more geographic zones.

(b) Represents risks in one geographic zone.

(c) The Other locations non-specific category refers to business for which an analysis of exposure by geographic zone is not applicable since these exposures can span multiple geographic areas and, in some instances, are not fixed locations.

	Gross Premiums Written
	Nine Months Ended September 30, 2016
	Validus Re		Talbot		Western World		AlphaCat		Eliminations			Total		%
United States	$	455,826	$	85,182	$	236,190	$	64,566	$	(1,631	)	$	840,133	36.4	%
Worldwide excluding United States (a)	51,384		105,590		—		22,219		(650		)	178,543		7.8	%
Australia and New Zealand	6,906		7,613		—		4,949		(107		)	19,361		0.8	%
Europe	30,270		25,673		—		3,306		(668		)	58,581		2.5	%
Latin America and Caribbean	36,610		76,577		—		—		(6,330		)	106,857		4.6	%
Japan	39,892		5,579		—		3,221		(24		)	48,668		2.1	%
Canada	3,646		5,577		—		223		(129		)	9,317		0.4	%
Rest of the world (b)	22,307		76,456		—		—		(2,276		)	96,487		4.2	%
Sub-total, non United States	191,015		303,065		—		33,918		(10,184		)	517,814		22.4	%
Worldwide including United States (a)	169,737		75,423		—		170,639		(10,052		)	405,747		17.6	%
Other locations non-specific (c)	255,641		288,388		—		1,543		(15		)	545,557		23.6	%
Total	$	1,072,219	$	752,058	$	236,190	$	270,666	$	(21,882	)	$	2,309,251	100.0	%

	Gross Premiums Written
	Nine Months Ended September 30, 2015
	Validus Re		Talbot		Western World		AlphaCat		Eliminations			Total		%
United States	$	544,988	$	89,980	$	207,372	$	41,021	$	(2,189	)	$	881,172	39.2	%
Worldwide excluding United States (a)	52,765		95,894		—		8,107		(1,141		)	155,625		6.9	%
Australia and New Zealand	11,980		6,569		—		624		(211		)	18,962		0.8	%
Europe	47,182		31,637		—		2,504		(1,005		)	80,318		3.6	%
Latin America and Caribbean	34,011		78,634		—		—		(9,837		)	102,808		4.6	%
Japan	39,174		4,746		—		1,671		(142		)	45,449		2.0	%
Canada	3,097		5,452		—		458		(195		)	8,812		0.4	%
Rest of the world (b)	24,323		76,368		—		—		(3,063		)	97,628		4.3	%
Sub-total, non United States	212,532		299,300		—		13,364		(15,594		)	509,602		22.6	%
Worldwide including United States (a)	132,353		74,794		—		115,264		(17,731		)	304,680		13.6	%
Other locations non-specific (c)	222,537		325,074		—		4,842		(6		)	552,447		24.6	%
Total	$	1,112,410	$	789,148	$	207,372	$	174,491	$	(35,520	)	$	2,247,901	100.0	%

(a) Represents risks in two or more geographic zones.

(b) Represents risks in one geographic zone.

(c) The Other locations non-specific category refers to business for which an analysis of exposure by geographic zone is not applicable since these exposures can span multiple geographic areas and, in some instances, are not fixed locations.