Validus Holdings, Ltd. Provides Initial Estimate of Losses From Tianjin Explosion and Chilean Earthquake
October 05 2015 - 4:16PM
Business Wire
Validus Holdings, Ltd. (“Validus” or the “Company”) (NYSE:VR)
today provided an initial estimate of losses relating to the August
12th explosion in the port of Tianjin, China and the September 16th
earthquake in Chile. Validus expects to record losses from these
events, net of reinstatement premiums and reinsurance,
retrocessional and other recoveries in the amount of $63.9 million.
This amount is apportioned between Validus’ operating segments as
follows:
Amounts in USD (millions)
Validus Re Talbot Total
Description
Net
Impact
Net
Impact
Net
Impact
Tianjin Explosion $32.7 $11.2 $43.9 Chile Earthquake $15.3
$4.7 $20.0 Total $48.0 $15.9
$63.9
The net impact to Validus is based on the Company’s internal
models, external reports and other information on the event, and
loss reporting from impacted (re)insureds. The absence of
significant client loss reporting on these events has caused the
loss estimates to be established primarily on the basis of exposure
analysis and industry loss estimates. Due to limited reported
losses, the complexity of the events and uncertainties inherent in
this preliminary information, Validus’ actual ultimate losses from
these events may vary materially from this initial estimate.
About Validus Holdings,
Ltd.
Validus Holdings, Ltd. is a holding company for reinsurance and
insurance operating companies and investment advisors including
Validus Reinsurance, Ltd. (“Validus Re”), Talbot Holdings Ltd.
(“Talbot”), Western World Insurance Group, Inc. (“Western World”)
and AlphaCat Managers, Ltd. (“AlphaCat”).
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. Western World is a U.S. specialty
lines insurance company focused on excess and surplus lines.
AlphaCat is a Bermuda based investment adviser managing capital for
third parties and Validus in insurance linked securities and other
property catastrophe reinsurance investments.
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) statutory or
regulatory developments including tax policy, reinsurance and other
regulatory matters; 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 U.S. 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 Company undertakes no obligation to update
publicly or revise any forward-looking statement, whether as a
result of new information, future developments or otherwise.
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version on businesswire.com: http://www.businesswire.com/news/home/20151005006615/en/
Investors:Validus Holdings,
Ltd.investor.relations@validusholdings.com+1-441-278-9000orMedia:Brunswick
GroupRadina Russell / Josh Gerth+1-212-333-3810
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