Validus profit drops 11.5% in third quarter

Validus Holdings Ltd.’s net income for the third quarter this year dropped 11.5% compared with the same quarter a year ago to $183.4 million, the Pembroke, Bermuda-based insurer and reinsurer reported.

Net premiums earned for the three months ended Sept.30 increased 11.8% compared with the same period last year to $531.3 million. Net investment income dropped 21.5% from the comparable period in 2012 to $20.0 million. The combined ratio improved to 68.6% from 69.9%.

Net income for the first three quarters of the year declined 12.4% compared with the same period last year to $437.3 million. Net investment income also declined 9.4% to $71.9 million. The Bermuda company’s combined ratio improved to 69.3% from 73.7%.

“Validus’ size, scale and diversification across short-tail classes of reinsurance and insurance continues to benefit our shareholders as evidenced by our strong results for the quarter,” Validus Chairman and CEO Ed Noonan said in a statement. “All three of Validus’ operating segments — Validus Re, Talbot and Validus AlphaCat — performed well, which led to an overall 68.6% combined ratio and $166.8 million of underwriting income.”