|[January 09, 2013]
Validus Holdings, Ltd. Announces $404.4 Million of Third Party Capital Raised for Deployment in Collateralized Reinsurance and Insurance Linked Securities
PEMBROKE, Bermuda --(Business Wire)--
Validus Holdings, Ltd. (NYSE: VR) ("Validus" or the "Company") announced
today that its investment advisory subsidiary, AlphaCat Managers, Ltd.,
has raised $404.4 million of third party capital for investment in
collateralized reinsurance and Insurance Linked Securities ("ILS").
AlphaCat 2013, Ltd. ("AlphaCat 2013") is a special purpose vehicle
formed to invest in collateralized property catastrophe reinsurance and
retrocession on a worldwide basis. AlphaCat 2013 is capitalized at
$230.0 million, with outside investors contributing $185.0 million or
80.4% of the funding and the balance being provided by Validus.
Validus also announced that $219.4 million of third party subscriptions
were received in its ILS funds. The AlphaCat ILS funds invest in
instruments with returns linked to property catastrophe reinsurance,
retrocession and ILS contracts.
Ed Noonan, Chairman and Chief Executive Officer of Validus commented:
"AlphaCat 2013 and the third party investment in the AlphaCat ILS funds
reflect the continued importance of Validus' franchise in the global
property catastrophe reinsurance market. We are pleased with the
significant level of investor support which reflects on the scale of
Validus' operations, the skill of our underwriting team and the AlphaCat
infrastructure we have developed to manage third party capital."
About Validus Holdings, Ltd. and AlphaCat
Validus Holdings, Ltd. is a provider of reinsurance and insurance,
conducting its operations worldwide through two wholly-owned
subsidiaries, Validus Reinsurance, Ltd. ("Validus Re") and Talbot
Holdings Ltd. ("Talbot"). Validus Re is a Bermuda based reinsurer
focused on short-tail lines of reinsurance. Talbot is the Bermuda parent
of the specialty insurance groupprimarily operating within the Lloyd's
insurance market through Syndicate 1183.
The Validus owned AlphaCat investment advisory group was formed in 2008
and manages property catastrophe-linked sidecars, ILS funds and the
Bermuda Class 4 reinsurer, PaCRe, Ltd.
Cautionary Note Regarding Forward-Looking Statements
This press release may include forward-looking statements, both with
respect to us and our 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," "could" 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. 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
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 on file with the Securities and Exchange
Commission. 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. Validus 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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