Validus Holdings, Ltd. (VR) has reported an 88.75 percent plunge in profit for the quarter ended Dec. 31, 2016. The company has earned $7.77 million, or $0.10 a share in the quarter, compared with $69.04 million, or $0.81 a share for the same period last year.
Revenue during the quarter dropped 3.16 percent to $522.14 million from $539.20 million in the previous year period. Net premium earned for the quarter went down marginally by 0.53 percent or $2.90 million to $540.40 million. During the quarter, the company has written premium worth $298.82 million on net basis, up 8.08 percent or $22.34 million.
Total expenses move up
Operating income for the quarter was $52.36 million, compared with $130.13 million in the previous year period.
Net investment income was at $38.15 million for the quarter, up 20.69 percent or $6.54 million from year-ago period. The company has booked a loss on investments of $58.24 million in the quarter compared with a loss of $37.79 million for the previous year period.
Commenting on the results for the three months ended December 31, 2016, Validus' chairman and chief executive officer Ed Noonan stated: "Validus had another strong year in 2016. Despite the global insurance market growing more competitive, we were able to deliver an 84.2% combined ratio and grow our book value per diluted share (including dividends) by 9.5%. We continue to position the Company well to weather the soft market while building the foundation to capitalize on better market conditions down the road."
Assets outpace liabilities growth
Total assets increased 7.93 percent or $833.94 million to $11,349.76 million on Dec. 31, 2016. On the other hand, total liabilities were at $5,817.49 million as on Dec. 31, 2016, up 3.69 percent or $207.02 million from year-ago.
Return on assets stood at 0.21 percent in the quarter, down 1.70 from 1.92 percent in the last year period. At the same time, return on equity was at 0.19 percent in the quarter, down 1.63 from 1.82 percent in the last year period.
Investments move up
Investments stood at $8,845.34 million as on Dec. 31, 2016, up 12.29 percent or $968.46 million from year-ago. Meanwhile, yield on investments went up 3 basis points to 0.43 percent in the quarter.
Shareholders equity stood at $4,004.27 million as on Dec. 31, 2016, up 5.55 percent or $210.63 million from year-ago.
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