SCHEDULE II

VALIDUS HOLDINGS, LTD.

CONDENSED FINANCIAL INFORMATION OF REGISTRANT

BALANCE SHEETS

As at December 31, 2016 and 2015

(Expressed in thousands of U.S. dollars, except share and per share information)



	December 31, 2016			December 31, 2015
Assets
Fixed maturities trading, at fair value	$	92,197		$	28,403
Cash and cash equivalents	11,780			25,306
Investments in subsidiaries on an equity basis	4,383,800			4,198,809
Balances due from subsidiaries	—			10,389
Accrued investment income	239			49
Other assets	1,143			813
Total assets	$	4,489,159		$	4,263,769
Liabilities
Accounts payable and accrued expenses	$	26,884		$	29,633
Balances due to subsidiaries	28,622			—
Senior notes payable	245,362			245,161
Debentures payable	350,000			350,000
Total liabilities	$	650,868		$	624,794
Shareholders’ Equity
Authorized 571,428,571 common and preferred shares, par value $0.175 per share:
Preferred shares (Issued and Outstanding: 2016—6,000; 2015—nil)	$	150,000		$	—
Common shares (Issued: 2016—161,279,976; 2015—160,570,772; Outstanding: 2016—79,132,252; 2015—82,900,617)	28,224			28,100
Treasury shares (2016—82,147,724; 2015—77,670,155)	(14,376		)	(13,592		)
Additional paid-in capital	821,023			1,002,980
Accumulated other comprehensive loss	(23,216		)	(12,569		)
Retained earnings	2,876,636			2,634,056
Total shareholders’ equity	$	3,838,291		$	3,638,975
Total liabilities and shareholders’ equity	$	4,489,159		$	4,263,769

VALIDUS HOLDINGS, LTD.

CONDENSED FINANCIAL INFORMATION OF REGISTRANT (Continued)

STATEMENTS OF INCOME AND COMPREHENSIVE INCOME

For the years ended December 31, 2016, 2015 and 2014

(Expressed in thousands of U.S. dollars)



	Years Ended December 31,
	2016			2015			2014
Revenues
Net investment income	$	1,195		$	317		$	14
Net realized gains on investments	8,020			—			—
Change in net unrealized losses on investments	(276		)	(395		)	—
Foreign exchange gains	1,932			715			648
Total revenues	10,871			637			662
Expenses
General and administrative expenses	72,235			74,015			86,108
Share compensation expenses	6,832			7,261			6,424
Finance expenses	47,108			47,722			47,689
Total expenses	126,175			128,998			140,221
Loss before equity in net earnings of subsidiaries	(115,304		)	(128,361		)	(139,559		)
Equity in net earnings of subsidiaries	479,143			503,254			619,522
Net income available to Validus	363,839			374,893			479,963
Dividends on preferred shares	(4,455		)	—			—
Net income available to Validus common shareholders	$	359,384		$	374,893		$	479,963

Comprehensive income:
Net income available to Validus	$	363,839		$	374,893		$	479,963
Other comprehensive (loss) income:
Change in foreign currency translation adjustments	(10,440		)	(3,716		)	(7,501		)
Change in minimum pension liability, net of tax	(484		)	544			(210		)
Change in fair value of cash flow hedge	277			(841		)	(228		)
Other comprehensive loss	(10,647		)	(4,013		)	(7,939		)
Comprehensive income available to Validus	$	353,192		$	370,880		$	472,024

VALIDUS HOLDINGS, LTD.

CONDENSED FINANCIAL INFORMATION OF REGISTRANT (Continued)

STATEMENTS OF CASH FLOWS

For the years ended December 31, 2016, 2015 and 2014

(Expressed in thousands of U.S. dollars)



	Years Ended December 31,
	2016			2015			2014
Cash flows provided by (used in) operating activities
Net income available to Validus	$	363,839		$	374,893		$	479,963
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Equity in net earnings of subsidiaries	(479,143		)	(503,254		)	(619,522		)
Dividends received from subsidiaries	30,000			620,700			100,000
Net realized gains on investments	(8,020		)	—			—
Amortization of discount on senior notes	108			108			108
Share compensation expenses	6,832			7,261			6,424
Change in net unrealized losses on investments	276			395			—
Amortization of premium on fixed maturity investments	115			105			—
Change in:
Other assets	(238		)	173			528
Accrued investment income	(190		)	(49		)	—
Balances due from subsidiaries	10,389			30,689			(12,030		)
Balances due to subsidiaries	28,622			—			—
Accounts payable and accrued expenses	(4,348		)	5,080			2,624
Net cash (used in) provided by operating activities	(51,758		)	536,101			(41,905		)
Cash flows provided by (used in) investing activities
Purchases of fixed maturity investments	(56,164		)	(28,903		)	—
Investments in subsidiaries	—			(555,700		)	—
Return of capital from subsidiaries	290,000			400,000			673,966
Net cash provided by (used in) investing activities	233,836			(184,603		)	673,966
Cash flows provided by (used in) financing activities
Issuance of preferred shares, net	144,852			—			—
Issuance of common shares, net	(7,701		)	17,407			5,347
Purchases of common shares under repurchase program	(212,675		)	(260,430		)	(510,952		)
Dividends paid on preferred shares	(4,455		)	—			—
Dividends paid on common shares	(115,625		)	(112,967		)	(117,043		)
Net cash used in financing activities	(195,604		)	(355,990		)	(622,648		)

Net (decrease) increase in cash	(13,526		)	(4,492		)	9,413
Cash and cash equivalents—beginning of year	25,306			29,798			20,385
Cash and cash equivalents—end of year	$	11,780		$	25,306		$	29,798