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Form 8-K VALIDUS HOLDINGS LTD For: Jan 26

January 26, 2015 4:23 PM EST


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
___________
FORM 8-K
___________
CURRENT REPORT

Pursuant to Section�13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): January 26, 2015

Commission file number 001-33606
___________

VALIDUS HOLDINGS, LTD.
(Exact name of registrant as specified in its charter)



BERMUDA
98-0501001
(State or other jurisdiction of
(I.R.S. Employer
incorporation or organization)
Identification No.)

29 Richmond Road, Pembroke, Bermuda HM 08
(Address of principal executive offices)

Registrant's telephone number, including area code: (441)�278-9000
Not Applicable
(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o
Written communications pursuant to Rule�425 under the Securities Act (17 CFR 230.425)

o
Soliciting material pursuant to Rule�14a-12 under the Exchange Act (17 CFR 240.14a-12)

o
Pre-commencement communications pursuant to Rule�14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o
Pre-commencement communications pursuant to Rule�13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))









Item�2.02
Results of Operations and Financial Condition.

The Company is providing supplemental historical information on two items.

Effective as of October 2, 2014, Validus Holdings, Ltd. (the Company) acquired all of the outstanding capital stock of Western World Insurance Group, Inc. ("Western World"), a specialty lines insurance company. On January 26, 2015, the Company made available on its website a financial supplement containing the historical Western World financial statements.

On January 26, 2015, the Company is also providing an updated analysis of loss ratios by segment to provide further details on non-notable losses.

Copies of the financial supplement and updated loss ratio analysis are attached hereto as Exhibits 99.1 and 99.2, respectively, to this Current Report on Form 8-K and are incorporated by reference herein.

The information in this Current Report on Form 8-K, including the information set forth in Exhibit�99.1, shall not be deemed filed for purposes of Section�18 of the Securities Exchange Act of 1934, as amended (the Exchange Act), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.

Item�9.01
Financial Statements and Exhibits.

(d)
Exhibits. The following exhibits are filed with this report:

Exhibit No.
Description

99.1

Unaudited Historical Financial Information
99.2

Analysis of Loss Ratios by Segment





SIGNATURES

�����Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Date: January 26, 2015

VALIDUS HOLDINGS, LTD.
������(Registrant)
��
By:��
/s/�Robert F. Kuzloski
Name:�
Robert F. Kuzloski
Title:�
Executive Vice President & General Counsel





�������������������










Validus Holdings, Ltd.
Western World Insurance Group, Inc.
Unaudited Historical Financial Information
29 Richmond Road
Pembroke, HM 08 Bermuda
Telephone: (441) 278-9000
Facsimile: (441) 278-9009
Website: www.validusholdings.com
Mailing address: Suite 1790 48 Par-la-Ville Road
Hamilton, HM 11 Bermuda




Validus Holdings, Ltd.
Western World Insurance Group, Inc.
Historical Unaudited Financial Information

The following unaudited financial information is intended to provide you with information on the quarterly results of Western World Insurance Group, Inc. ("Western World") for the period January 1, 2013 to September 30, 2014. The financial information has been prepared and presented in conformity with accounting principles generally accepted in the United States of America. On October 2, 2014, Validus Holdings, Ltd. ("Validus") acquired all of the outstanding capital stock of Western World. The results of Western World will be included in the consolidated results of Validus from October 2, 2014.

Basis of Presentation
����
"
This supplement is for information purposes only. It should be read in conjunction with documents filed by Validus Holdings, Ltd. with the U.S. Securities and Exchange Commission pursuant to the Securities Exchange Act 1934.

"
All financial information contained herein is unaudited.
"
Unless otherwise noted, dollar amounts are in thousands of U.S. dollars, except for share and per share amounts and ratio information.
"
The attached unaudited quarterly income statements attached are prepared using Western World's accounting policies, which differ from those of Validus. Western World recorded underwriting costs as policy acquisition costs, and deferred and amortized these costs over the terms of the policies to which they related. It is Validus policy not to defer and amortize internal underwriting costs. Western World classified fixed maturities as either held-to-maturity or available-for-sale, with held-to-maturity securities carried at amortized cost as Western World had the positive intent and ability to hold each of these securities to maturity. It is Validus' policy to hold investments as trading. As of October 2, 2014, the closing date of Western World's acquisition by Validus, Western World has adopted the accounting policies of Validus.





Validus Holdings, Ltd.
Western World Insurance Group, Inc. - Unaudited Historical Financial Information
(Expressed in thousands of U.S. Dollars, except share and per share information)
Three Months Ended
September 30,
2014
June 30,
2014
March 31,
2014
December 31, 2013
September 30, 2013
June 30,
2013
March 31,
2013
Revenues
Gross premiums written
$
82,705

$
100,134

$
74,069

$
75,162

$
72,149

$
75,318

$
57,062

Reinsurance premiums ceded
(6,838
)
(9,605
)
(6,334
)
(7,605
)
(6,689
)
(7,479
)
(5,753
)
Net premiums written
75,867

90,529

67,735

67,557

65,460

67,839

51,309

Change in unearned premiums
239

(18,832
)
(1,593
)
(4,231
)
(6,873
)
(15,246
)
(2,453
)
Net premiums earned
76,106


71,697


66,142


63,326


58,587


52,593


48,856

Net investment income
6,701

7,014

7,071

7,151

7,303

7,011

7,382

Net realized / unrealized gains (losses)on investments
1,067

398

1,962

1,081

809

747

1,302

Other (loss) income
(320
)
(1,608
)
(331
)
66

(196
)
(310
)
(407
)
Total revenues
83,554


77,501


74,844


71,624


66,503


60,041


57,133

Expenses
Incurred losses - current year
55,434

52,584

48,370

48,263

47,143

41,053

37,948

Change in prior accident year
(3,655
)
(3,858
)
(3,393
)
(6,398
)
(6,134
)
(4,238
)
(3,750
)
Losses and loss expenses
51,779


48,726


44,977


41,865


41,009


36,815


34,198

Policy acquisition costs
17,681

16,556

15,233

14,046

12,615

12,427

10,530

General and administrative expenses
7,211

7,671

7,426

6,391

6,713

6,551

6,896

Total expenses
76,671


72,953


67,636


62,302


60,337


55,793


51,624

Income before taxes
6,883


4,548


7,208


9,322


6,166


4,248


5,509

Tax (expense)
(1,363
)
(609
)
(1,535
)
(1,891
)
(1,221
)
(612
)
(1,012
)
Net income (loss)
$
5,520


$
3,939


$
5,673


$
7,431


$
4,945


$
3,636


$
4,497

Selected ratios:
Net premiums written / Gross premiums written
91.7
�%

90.4
�%

91.4
�%

89.9
�%

90.7
�%

90.1
�%

89.9
�%
Incurred losses - current year
72.8
�%

73.3
�%

73.1
�%

76.2
�%

80.5
�%

78.1
�%

77.7
�%
Change in prior accident year
(4.8
)%

(5.3
)%

(5.1
)%

(10.1
)%

(10.5
)%

(8.1
)%

(7.7
)%
Losses and loss expenses
68.0
�%

68.0
�%

68.0
�%

66.1
�%

70.0
�%

70.0
�%

70.0
�%
Policy acquisition costs
23.2
�%

23.1
�%

23.0
�%

22.2
�%

21.5
�%

23.6
�%

21.6
�%
General and administrative expenses
9.5
�%

10.7
�%

11.2
�%

10.1
�%

11.5
�%

12.5
�%

14.1
�%
Expense ratio
32.7
�%

33.8
�%

34.2
�%

32.3
�%

33.0
�%

36.1
�%

35.7
�%
Combined ratio
100.7
�%

101.8
�%

102.2
�%

98.4
�%

103.0
�%

106.1
�%

105.7
�%






�������������������










Validus Holdings, Ltd.
Analysis of Loss Ratios by Segment
29 Richmond Road
Pembroke, HM 08 Bermuda
Telephone: (441) 278-9000
Facsimile: (441) 278-9009
Website: www.validusholdings.com
Mailing address: Suite 1790 48 Par-la-Ville Road
Hamilton, HM 11 Bermuda






Validus Holdings, Ltd.
Analysis of Loss Ratios by Segment
(Expressed in thousands of U.S. Dollars, except share and per share information)
Three Months Ended
September 30,
2014
June 30,
2014
March 31,
2014
December 31,
2013
September 30,
2013
June 30,
2013
March 31,
2013
Validus Re Segment
Current period - excluding items below
47.0
�%

40.9
�%

32.8
�%

42.9
�%

39.1
�%

38.4
�%
33.7
�%
Current period - notable loss events
0.0
�%
0.0
�%
0.0
�%
0.0
�%
(5.3
)%
22.9
�%
0.0
�%
Current period - non-notable loss events
6.9
�%
6.1
�%
0.0
�%
0.0
�%
0.0
�%
0.0
�%
0.0
�%
Change in prior accident years
(8.9
)%
(12.0
)%
(4.2
)%
1.3
�%
(11.2
)%
(1.0
)%
(9.5
)%
Net loss ratio
45.0
�%
35.0
�%
28.6
�%
44.2
�%
22.6
�%
60.3
�%
24.2
�%
AlphaCat Segment
Current period - excluding items below
10.6
�%
2.2
�%
0.0
�%
2.1
�%
42.0
�%
1.0
�%
0.0
�%
Current period - notable loss events
0.0
�%
0.0
�%
0.0
�%
(0.4
)%
0.0
�%
2.8
�%
0.0
�%
Current period - non-notable loss events
0.0
�%
0.0
�%
0.0
�%
0.0
�%
0.0
�%
0.0
�%
0.0
�%
Change in prior accident years
0.0
�%
(11.5
)%
(25.6
)%
0.0
�%
0.0
�%
0.0
�%
0.0
�%
Net loss ratio
10.6
�%
(9.3
)%
(25.6
)%
1.7
�%
42.0
�%
3.8
�%
0.0
�%
Talbot Segment
Current period - excluding items below
60.6
�%
57.3
�%
57.9
�%
65.4
�%
61.6
�%
53.7
�%
54.1
�%
Current period - notable loss events
0.0
�%
0.0
�%
0.0
�%
(0.9
)%
(0.1
)%
3.2
�%
0.0
�%
Current period - non-notable loss events
5.4
�%
2.3
�%
0.0
�%
0.0
�%
0.0
�%
0.0
�%
0.0
�%
Change in prior accident years
(15.2
)%
(19.9
)%
(10.0
)%
(18.1
)%
(15.7
)%
(18.3
)%
(18.5
)%
Net loss ratio
50.8
�%
39.7
�%
47.9
�%
46.4
�%
45.8
�%
38.6
�%
35.6
�%
Consolidated
Current period - excluding items below
50.8
�%
45.7
�%
41.9
�%
49.1
�%
48.5
�%
41.7
�%
39.7
�%
Current period - notable loss events
0.0
�%
0.0
�%
0.0
�%
(0.4
)%
(2.8
)%
14.2
�%
0.0
�%
Current period - non-notable loss events
5.7
�%
4.0
�%
0.0
�%
0.0
�%
0.0
�%
0.0
�%
0.0
�%
Change in prior accident years
(11.2
)%
(15.6
)%
(8.2
)%
(6.8
)%
(12.2
)%
(7.5
)%
(12.4
)%
Net loss ratio
45.3
�%
34.1
�%
33.7
�%
41.9
�%
33.5
�%
48.4
�%
27.3
�%

Notes:
For disclosure purposes, only those loss events which aggregate to over $30 million on a� consolidated basis (notable loss events) are disclosed separately in the Companys analysis of loss ratios and also included in the reserve for notable loss events and reserve for development on notable loss events table in the Companys Annual Report on Form 10-K.� In addition, only those loss events which aggregate to over $15 million but less than $30 million on a consolidated basis (non-notable loss events) are incorporated into the Companys analysis of loss ratios.





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