Validus Holdings, Ltd. (VR) has reported a 41.99 percent plunge in profit for the quarter ended Mar. 31, 2017. The company has earned $96.76 million, or $1.17 a share in the quarter, compared with $166.81 million, or $1.98 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $76.83 million, or $0.95 a share compared with $121.50 million or $1.44 a share, a year ago.
Revenue during the quarter went down marginally by 2.35 percent to $635.86 million from $651.13 million in the previous year period. Net premium earned for the quarter went up marginally by 0.72 percent or $4.11 million to $575.38 million. During the quarter, the company has written premium worth $990.75 million on net basis, down 1.41 percent or $14.21 million.
Total expenses move up
Benefits, losses and expenses for the quarter were at $492.57 million, or 85.61 percent of premium earned from $444.29 million or 77.77 percent of premium earned in the last year period. Operating income for the quarter was $143.29 million, compared with $206.85 million in the previous year period.
Net investment income was at $40.21 million for the quarter, up 36.50 percent or $10.75 million from year-ago period. The company has recorded a gain on investments of $12.18 million in the quarter compared with a gain of $46.86 million for the previous year period.
Commenting on the results for the three months ended March 31, 2017, Validus' chairman and chief executive officer Ed Noonan stated: "This was another good quarter for the Validus Group. We had $94.6 million in net income, and an annualized return on average equity of 10.2% in the quarter. Our combined ratio of 83.2% reflects our continued commitment to underwriting profits, and most importantly we grew our book value per diluted common share (including dividends) by 2.9% during the quarter."
Assets outpace liabilities growth
Total assets increased 8.32 percent or $932.60 million to $12,137.12 million on Mar. 31, 2017. On the other hand, total liabilities were at $6,237.02 million as on Mar. 31, 2017, up 5.46 percent or $323.18 million from year-ago.
Return on assets stood at 1.15 percent in the quarter, down 0.81 from 1.96 percent in the last year period. At the same time, return on equity was at 2.23 percent in the quarter, down 2.07 from 4.30 percent in the last year period.
Investments move up
Investments stood at $8,688.14 million as on Mar. 31, 2017, up 8.22 percent or $660.26 million from year-ago. Meanwhile, yield on investments went up 10 basis points to 0.46 percent in the quarter.
Shareholders equity stood at $4,242.47 million as on Mar. 31, 2017, up 9.30 percent or $360.82 million from year-ago. As a result, debt to equity ratio went up 3 basis points to 0.23 percent in the quarter from 0.20 percent in the last year period.
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