Validus swings back to profit in 2013 fourth quarter

Validus Holdings Ltd.’s net income for the fourth quarter of 2013 registered $95.3 million compared with a loss of $117.9 million during the same quarter a year ago, the Pembroke, Bermuda-based insurer and reinsurer reported Thursday.

Net premiums earned for the three months ending Dec. 31, 2013, dropped 1.4% compared with the same period the previous year, to $492.2 million. Net investment income dropped 16.0% from the comparable period in 2012, to $24.2 million. The combined ratio improved to 77.6% from 112.7%.

Net income for 2013 as a whole increased 30.4% compared with 2012, to $532.7 million. Net investment income declined 11.0%, to $96.1 million. The company’s combined ratio improved to 71.2% from 86.8%. Net earned premiums for the year increased 12.2%, to 2.10 billion dollars.

“2013 was the eighth full year of operations for Validus, and I am extremely proud of our growth from an ambitious startup company to a global leader in the short tail classes of reinsurance and insurance,” said Validus Chairman and CEO Ed Noonan in a statement. “We have strong and sustainable businesses in all three of our core operating units: Validus Re, Talbot and AlphaCat, each supported by excellent financial resources and run by talented business leaders.”