DEFA14A

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): February 1, 2018

VALIDUS HOLDINGS, LTD.

(Exact name of registrant as specified in its charter)

BERMUDA	001-33606	98-0501001
(State or other jurisdiction	(Commission	(I.R.S. Employer
of incorporation)	File Number)	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:

oWritten communications pursuant to Rule 425 under the securities Act (17 CFR 230.425)

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

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

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

Indicate by check mark whether the registrant is an emerging growth company as defined in as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company o

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  o

Item 2.02 Results of Operations and Financial Condition.

     On February 1, 2018, Validus Holdings, Ltd. issued a press release reporting its earnings for the three months and year endedDecember 31, 2017 (the "Press Release") and posted its fourth quarter 2017 Investor Financial Supplement to the Investors section of its website. A copy of the Press Release and Investor Financial Supplement are attached to this Current Report on Form 8-K as Exhibit 99.1 and Exhibit 99.2, respectively and are incorporated herein by reference.

The information in this Current Report on Form 8-K, including the information set forth in Exhibit 99.1 and Exhibit 99.2, 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 herewith:

Exhibit No.		Description
	99.1	Press Release dated February 1, 2018 announcing the earnings of Validus Holdings, Ltd. for the three months and year ended December 31, 2017.
	99.2	Fourth Quarter 2017 Investor Financial Supplement.

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: February 1, 2018

VALIDUS HOLDINGS, LTD.       (Registrant)
By:	/s/ Jeffrey D. Sangster
Name:	Jeffrey D. Sangster
Title:	Executive Vice President and Chief Financial Officer

EX-99.1

VALIDUS REPORTS FOURTH QUARTER AND FULL YEAR 2017 FINANCIAL RESULTS

Pembroke, Bermuda, February 1, 2018 - Validus Holdings, Ltd. (“Validus” or the “Company”) (NYSE: VR) today reported a net (loss) attributable to Validus common shareholders of $(8.7) million, or $(0.11) per diluted common share, for the three months endedDecember 31, 2017, compared to net income available to Validus common shareholders of $7.8 million, or $0.10 per diluted common share, for the three months endedDecember 31, 2016. Net (loss) attributable to Validus common shareholders was $(63.5) million, or $(0.80) per diluted common share, for the year endedDecember 31, 2017, compared to net income available to Validus common shareholders of $359.4 million, or $4.36 per diluted common share, for the year endedDecember 31, 2016.

Net operating income available to Validus common shareholders was $4.2 million, or $0.05 per diluted common share, for the three months endedDecember 31, 2017, compared to $58.5 million, or $0.73 per diluted common share, for the three months endedDecember 31, 2016. Net operating (loss) attributable to Validus common shareholders was $(85.0) million, or $(1.07) per diluted common share, for the year endedDecember 31, 2017, compared to net operating income available to Validus common shareholders of $320.9 million, or $3.90 per diluted common share, for the year endedDecember 31, 2016.

Book value per common share at December 31, 2017 was $44.06, compared to $44.51 at September 30, 2017. Book value per diluted common share at December 31, 2017 was $42.71, compared to $43.13 at September 30, 2017, reflecting a quarterly decrease of (0.1)%, inclusive of common dividends.

Commenting on the results for the three months endedDecember 31, 2017, Validus’ Chairman and CEO Ed Noonan stated:

“We continue to position the Company well, utilizing both traditional retro and the Validus-sponsored Tailwind Re catastrophe bond to improve the risk return characteristics of our portfolio. Through portfolio optimization we were able to take advantage of rate increases while reducing our peak U.S. hurricane PML’s, which are down 65% since their height in 2013. Looking ahead, we are very excited to become part of the AIG Group at closing and are looking forward to being able to continue to serve our clients and brokers in new and exciting ways.”

(Loss) income (attributable) available to Validus common shareholders by segment for the three months endedDecember 31, 2017 and December 31, 2016 was as follows:

	Three Months Ended December 31,
(Expressed in millions of U.S. dollars, except per share information)	2017			2016
Reinsurance segment - Underwriting income	$	30.7		$	61.3
Insurance segment - Underwriting (loss)	(36.8		)	(19.1		)
Asset Management segment - (Loss) income	(1.1		)	6.3
Total segmental (loss) income	(7.2		)	48.5
Total managed investment return (a)	30.3			(20.5		)
Corporate expenses	(30.9		)	(19.3		)
Other items	(0.9		)	(0.9		)
Net (loss) income (attributable) available to Validus common shareholders	$	(8.7	)	$	7.8
Net (loss) income per diluted share (attributable) available to Validus common shareholders	$	(0.11	)	$	0.10
Net operating income available to Validus common shareholders (b)	$	4.2		$	58.5
Net operating income per diluted share available to Validus common shareholders(b)	$	0.05		$	0.73

(a) Total managed investment return includes returns generated on managed assets governed by the Company’s investment policy statement (“IPS”) and excludes returns on non-managed assets held in support of consolidated AlphaCat variable interest entities which are not governed by the Company’s IPS.

(b) Net operating income available to Validus common shareholders is presented after tax and is considered a non-GAAP financial measure. A reconciliation of net (loss) income (attributable) available to Validus common shareholders, the most comparable GAAP measure, to net operating income available to Validus common shareholders is presented at the end of this release.

Validus Holdings, Ltd. 29 Richmond Road, Pembroke, Bermuda HM08

Tel: +1-441.278.9000 Fax: +1-441.278.9090

www.validusholdings.com

January 2018 Reinsurance Renewals - Reinsurance and Asset Management segments

During the January 2018 renewal season, the Reinsurance and Asset Management segments underwrote $921.2 million in gross premiums written, an increase of 41.6% from the January 2017 renewal period. This renewal data does not include: (i) the Insurance segment’s operations as the business is distributed relatively evenly throughout the year; or (ii) the Reinsurance and Asset Management segment's agricultural premiums.

The following table presents the Reinsurance and Asset Management segments’ January 2018 and 2017 reinsurance renewals by Catastrophe XOL, Per Risk XOL and Proportional premiums:

	Reinsurance and Asset Management segment's combined premium
(Dollars in thousands)	Catastrophe XOL			Per Risk XOL			Proportional			Total
2018	$	545,536		$	65,740		$	309,923		$	921,199
2017	$	380,870		$	66,016		$	203,548		$	650,434
Increase (decrease)	43.2		%	(0.4		)%	52.3		%	41.6		%

The following table presents the Reinsurance and Asset Management segments' January 2018 and 2017 reinsurance renewals by line of business:

	Reinsurance segment premium
	Property						Specialty - Short-tail			Specialty - Other			Total
(Dollars in thousands)	U.S.			International
2018	$	147,152		$	119,588		$	262,444		$	117,616		$	646,800
2017	$	107,364		$	103,298		$	231,149		$	45,383		$	487,194
Increase	37.1		%	15.8		%	13.5		%	159.2		%	32.8		%
	Asset Management segment premium
	Property						Specialty - Short-tail			Specialty - Other			Total
(Dollars in thousands)	U.S.			International
2018	$	242,684		$	27,467		$	4,248		$	—		$	274,399
2017	$	136,574		$	21,538		$	5,128		$	—		$	163,240
Increase (decrease)	77.7		%	27.5		%	(17.2		)%	—		%	68.1		%
	Reinsurance and Asset Management segments’ combined premium
	Property						Specialty - Short-tail			Specialty - Other			Total
(Dollars in thousands)	U.S.			International
2018	$	389,836		$	147,055		$	266,692		$	117,616		$	921,199
2017	$	243,938		$	124,836		$	236,277		$	45,383		$	650,434
Increase	59.8		%	17.8		%	12.9		%	159.2		%	41.6		%

During the January 2018 renewal season, the Reinsurance segment underwrote $646.8 million in gross premiums written (excluding agriculture premiums), an increase of $159.6 million, or 32.8% from the 2017 renewal season. The increase was primarily driven by:

◦ An increase in the specialty - other lines of $72.2 million, or 159.2% as a result of the continued build out of the Company’s casualty portfolio and the timing of renewals; and

◦ An increase in U.S. property renewals of $39.8 million, or 37.1% driven by rate increases and significant premium growth on a few lines where the Company participated with large gross positions and managed its net exposure through strategic retrocession purchases.

The Asset Management segment underwrote $274.4 million in gross premiums written during the January 2018 renewal season, an increase of $111.2 million, or 68.1% from the 2017 renewal season. The increase was primarily driven by significant rate increases in the retrocession component of the portfolio and an increase in assets under management.

Validus Holdings, Ltd. 29 Richmond Road, Pembroke, Bermuda HM08

Tel: +1-441.278.9000 Fax: +1-441.278.9090

www.validusholdings.com

2

This earnings release should be read in conjunction with the Company's fourth quarter 2017 investor financial supplement that has been posted to the Investors section of the Company's website located at www.validusholdings.com.

Fourth Quarter 2017 Results

Highlights for the fourth quarter 2017 were as follows:

• Gross premiums written for the three months endedDecember 31, 2017 were $443.3 million compared to $339.5 million for the three months endedDecember 31, 2016, an increase of $103.9 million, or 30.6%. The increase was primarily driven by an increase in the Insurance segment.

• Reinsurance premiums ceded for the three months endedDecember 31, 2017 were $96.4 million compared to $40.6 million for the three months endedDecember 31, 2016, an increase of $55.8 million, or 137.3%. The increase was primarily driven by an increase in the Reinsurance and Insurance segments.

• Net premiums earnedfor the three months endedDecember 31, 2017 were $651.5 million compared to $540.4 million for the three months endedDecember 31, 2016, an increase of $111.1 million, or 20.6%. The increase was primarily driven by an increase in the Insurance and Reinsurance segments.

• Loss ratio for the three months endedDecember 31, 2017 and 2016 was 73.7% and 50.9%, respectively, and included the following:

◦ Notable losses of $120.8 million, or 18.5 percentage points of the loss ratio during the three months endedDecember 31, 2017 compared to $52.3 million, or 9.7 percentage points of the loss ratio during the three months endedDecember 31, 2016. Notable losses during the three months endedDecember 31, 2017 included $78.0 million, or 12.0 percentage points of the loss ratio, of losses attributable to AlphaCat investors and noncontrolling interests, compared to $15.3 million, or 2.8 percentage points of the loss ratio during the three months endedDecember 31, 2016;

◦ Non-notable losses of $9.7 million, or 1.5 percentage points of the loss ratio during the three months endedDecember 31, 2017 compared to $0.3 million during the three months endedDecember 31, 2016;

◦ Favorable loss reserve development on prior accident years of $42.9 million during the three months endedDecember 31, 2017, which benefited the loss ratio by 6.6 percentage points compared to favorable development of $46.8 million during the three months endedDecember 31, 2016, which benefited the loss ratio by 8.7 percentage points. The favorable development of $42.9 million during the three months endedDecember 31, 2017 was primarily driven by favorable development on attritional losses; and

◦ Attritional losses of $392.3 million, or 60.3 percentage points of the loss ratio during the three months endedDecember 31, 2017 compared to $269.3 million, or 49.8 percentage points of the loss ratio during the three months endedDecember 31, 2016. The increase was primarily driven by the addition of Crop Risk Services, Inc. (“CRS”) and a higher frequency of mid-size losses which did not meet the non-notable loss threshold.

• Combined ratio for the three months endedDecember 31, 2017 and 2016 was 109.7% and 89.6%, respectively, an increase of 20.1 percentage points.

• Total managed investment return from our managed investment portfolio for the three months endedDecember 31, 2017 was $30.3 million compared to $(20.5) million for the three months endedDecember 31, 2016, an increase of $50.7 million, or 247.8%.

• Annualized return on average equityfor the three months endedDecember 31, 2017 of (1.0)%, compared to 0.8% for the three months endedDecember 31, 2016.

• Annualized net operating return on average equity for the three months endedDecember 31, 2017 of 0.5%, compared to 6.3% for the three months endedDecember 31, 2016.

Validus Holdings, Ltd. 29 Richmond Road, Pembroke, Bermuda HM08

Tel: +1-441.278.9000 Fax: +1-441.278.9090

www.validusholdings.com

3

Notable and Non-notable Losses

The Company defines a notable loss event as an event whereby consolidated net losses and loss expenses aggregate to a threshold greater than or equal to $30.0 million. The Company defines a non-notable loss event as an event whereby consolidated net losses and loss expenses aggregate to a threshold greater than or equal to $15.0 million but less than $30.0 million.

Notable Loss Events

During the three months endedDecember 31, 2017, the Company incurred losses and loss expenses from fourth quarter 2017 notable loss events as described below:

	Northern California Wildfires
(Dollars in thousands)	Reinsurance segment			Insurance segment		Asset Management segment			Total
Net losses and loss expenses	$	4,762		$	10,250	$	72,742		$	87,754
Less: Net losses and loss expenses attributable to AlphaCat third party investors and noncontrolling interests	—			—		(67,592		)	(67,592		)
Validus’ share of net losses and loss expenses	4,762			10,250		5,150			20,162
Less: Net impact on premiums earned (a)	(8,024		)	—		—			(8,024		)
Net loss attributable to Validus	$	(3,262	)	$	10,250	$	5,150		$	12,138
	Southern California Wildfires
(Dollars in thousands)	Reinsurance segment			Insurance segment		Asset Management segment			Total
Net losses and loss expenses	$	19,108		$	4,387	$	15,000		$	38,495
Less: Net losses and loss expenses attributable to AlphaCat third party investors and noncontrolling interests	—			—		(13,837		)	(13,837		)
Validus’ share of net losses and loss expenses	19,108			4,387		1,163			24,658
Less: Net impact on premiums earned (a)	—			—		—			—
Net loss attributable to Validus	$	19,108		$	4,387	$	1,163		$	24,658
	Total Notable Loss Events
(Dollars in thousands)	Reinsurance segment			Insurance segment		Asset Management segment			Total
Net losses and loss expenses	$	23,870		$	14,637	$	87,742		$	126,249
Less: Net losses and loss expenses attributable to AlphaCat third party investors and noncontrolling interests	—			—		(81,429		)	(81,429		)
Validus’ share of net losses and loss expenses	23,870			14,637		6,313			44,820
Less: Net impact on premiums earned (a)	(8,024		)	—		—			(8,024		)
Net loss attributable to Validus	$	15,846		$	14,637	$	6,313		$	36,796

(a) Net impact on premiums earned includes reinstatement premiums assumed and the net impact of accelerating unearned premiums assumed and ceded.

Partially offsetting the losses and loss expenses noted above was net favorable development on third quarter 2017 notable loss events of $5.4 million, which benefited the loss ratio by 0.9 percentage points. During the three months endedDecember 31, 2016, the Company incurred losses and loss expenses from notable loss events of $52.3 million, or 9.7 percentage points of the loss ratio. Net of losses attributable to AlphaCat investors and noncontrolling interests of $15.3 million and reinstatement premiums of $0.7 million, the net loss attributable to the Company was $36.3 million.

Non-notable Loss Events

There were no non-notable loss events occurring during the three months endedDecember 31, 2017. However, as a result of loss events occurring in the fourth quarter, the Company reallocated retrocession recoveries between all 2017 loss events. As such, the Company increased its net loss estimate on the third quarter 2017 Mexico City Earthquake which caused this event to exceed the $15.0 million threshold and become a non-notable loss event. Net losses and loss expenses incurred from the Mexico City Earthquake non-notable loss event were $9.7 million, or 1.5 percentage points of the loss ratio during the three months endedDecember 31, 2017 and $13.5 million, or 1.9 percentage points of the loss ratio during the three months ended September 30, 2017.

Validus Holdings, Ltd. 29 Richmond Road, Pembroke, Bermuda HM08

Tel: +1-441.278.9000 Fax: +1-441.278.9090

www.validusholdings.com

4

Reinsurance Segment

Highlights for the fourth quarter 2017 were as follows:

• Gross premiums written for the three months endedDecember 31, 2017 were $52.0 million compared to $41.8 million for the three months endedDecember 31, 2016, an increase of $10.1 million, or 24.3% and included the following:

◦ Property premiums of $18.1 million during the three months endedDecember 31, 2017, compared to $8.5 million during the three months endedDecember 31, 2016, an increase of $9.6 million, or 113.8%, primarily driven by premium adjustments on existing business;

◦ Specialty - short-tail premiums of $13.0 million during the three months endedDecember 31, 2017, compared to $(8.8) million during the three months endedDecember 31, 2016, an increase of $21.8 million, or 248.3%. The increase was primarily driven by favorable premium adjustments on Agriculture business; and

◦ Specialty - other premiums of $20.8 million during the three months endedDecember 31, 2017, compared to $42.1 million during the three months endedDecember 31, 2016, a decrease of $21.3 million, or 50.5%. The decrease was primarily driven by the timing of renewals in the casualty class of business.

• Reinsurance premiums ceded for the three months endedDecember 31, 2017 were $40.7 million compared to $7.8 million for the three months endedDecember 31, 2016, an increase of $32.9 million. The increase was primarily driven by an increase in the property lines of $33.5 million as a result of new retrocession cover purchased from Tailwind Re.

• Net premiums earnedfor the three months endedDecember 31, 2017 were $250.6 million compared to $234.2 million for the three months endedDecember 31, 2016, an increase of $16.4 million, or 7.0%. The increase was primarily driven by ongoing growth in the specialty - other lines of business over the last two years.

• Loss ratio for the three months endedDecember 31, 2017 and 2016 was 54.2% and 39.9%, respectively, and included the following:

◦ Notable losses of $14.7 million, or 5.9 percentage points of the loss ratio during the three months endedDecember 31, 2017, compared to $18.6 million, or 7.9 percentage points of the loss ratio during the three months endedDecember 31, 2016. Notable losses during the during the three months endedDecember 31, 2017 included losses from fourth quarter 2017 notable loss events of $23.9 million, or 9.5 percentage points of the loss ratio, partially offset by favorable development on third quarter 2017 notable loss events of $9.2 million or 3.6 percentage points of the loss ratio;

◦ Non-notable losses of $9.4 million, or 3.7 percentage points of the loss ratio during the three months endedDecember 31, 2017, compared to $nil during the three months endedDecember 31, 2016. The non-notable losses incurred during the three months endedDecember 31, 2017 related to adverse development on the third quarter 2017 Mexico City Earthquake loss event due to reallocation of retrocession recoveries;

◦ Favorable loss reserve development on prior accident years of $21.2 million during the three months endedDecember 31, 2017, which benefited the loss ratio by 8.5 percentage points compared to favorable development of $34.9 million during the three months endedDecember 31, 2016, which benefited the loss ratio by 14.9 percentage points. The favorable development of $21.2 million during the three months endedDecember 31, 2017 was primarily driven by favorable development on attritional losses; and

◦ Attritional losses of $132.9 million, or 53.1 percentage points of the loss ratio during the three months endedDecember 31, 2017 compared to $109.8 million, or 46.9 percentage points of the loss ratio during the three months endedDecember 31, 2016. The increase was primarily due to a single mid-size loss which did not meet the non-notable loss threshold.

• General and administrative expensesfor the three months endedDecember 31, 2017 were $23.6 million compared to $21.2 million for the three months endedDecember 31, 2016, an increase of $2.4 million or 11.1%. The increase in general and administrative expenses was primarily driven by a higher allocation of costs to the segment during the three months ended December 31, 2017.

• Combined ratio for the three months endedDecember 31, 2017 and 2016 was 87.8% and 73.8%, respectively, an increase of 14.0 percentage points.

• Underwriting incomefor the three months endedDecember 31, 2017 was $30.7 million compared to $61.3 million for the three months endedDecember 31, 2016, a decrease of $30.5 million or 49.8%.

Validus Holdings, Ltd. 29 Richmond Road, Pembroke, Bermuda HM08

Tel: +1-441.278.9000 Fax: +1-441.278.9090

www.validusholdings.com

5

Insurance Segment

Highlights for the fourth quarter 2017 were as follows:

• Gross premiums written for the three months endedDecember 31, 2017 were $377.0 million compared to $297.9 million for the three months endedDecember 31, 2016, an increase of $79.1 million, or 26.6% and included the following:

◦ Property premiums of $105.0 million during the three months endedDecember 31, 2017, compared to $96.2 million during the three months endedDecember 31, 2016, an increase of $8.8 million, or 9.1%. The increase was primarily driven by the continued build out of product offerings in the U.S. short-tail property lines;

◦ Specialty - short-tail premiums of $155.2 million during the three months endedDecember 31, 2017, compared to $86.6 million during the three months endedDecember 31, 2016, an increase of $68.7 million, or 79.3%. The increase was primarily driven by new agriculture business written through CRS; and

◦ Specialty - other premiums of $116.8 million during the three months endedDecember 31, 2017, compared to $115.1 million during the three months endedDecember 31, 2016, an increase of $1.7 million, or 1.4%.

• Reinsurance premiums ceded for the three months endedDecember 31, 2017 were $56.4 million compared to $32.9 million for the three months endedDecember 31, 2016, an increase of $23.5 million, or 71.6%, primarily driven by increases in the property and specialty - short-tail lines of $12.9 million and $8.6 million, respectively. The increase in the property lines was primarily driven by the growth in gross premiums written as noted above and new reinsurance cover purchased from Tailwind Re. The increase in the specialty - short-tail lines was due to an increase in ceded agriculture premiums relating to new business written through CRS.

• Net premiums earnedfor the three months endedDecember 31, 2017 were $333.0 million compared to $240.1 million for the three months endedDecember 31, 2016, an increase of $92.9 million, or 38.7%. The increase was primarily driven by an increase the specialty - short-tail lines of $85.7 million due to agriculture net premiums earned relating to new business written through CRS.

• Loss ratio for the three months endedDecember 31, 2017 and 2016 was 73.5% and 68.5%, respectively, and included the following:

◦ Notable losses of $20.9 million, or 6.3 percentage points of the loss ratio during the three months endedDecember 31, 2017 compared to $17.7 million, or 7.4 percentage points of the loss ratio during the three months endedDecember 31, 2016. Notable losses during the during the three months endedDecember 31, 2017 included losses from fourth quarter 2017 notable loss events of $14.6 million, or 4.4 percentage points of the loss ratio, and losses from third quarter 2017 notable loss events of $6.3 million, or 1.9 percentage points of the loss ratio;

◦ Non-notable losses of $(2.3) million, which benefited the loss ratio by 0.7 percentage points during the three months endedDecember 31, 2017 compared to $0.2 million during the three months endedDecember 31, 2016. The reduction in non-notable losses incurred during the three months endedDecember 31, 2017 related to favorable development on the third quarter 2017 Mexico City Earthquake loss event;

◦ Favorable loss reserve development on prior accident years of $19.7 million during the three months endedDecember 31, 2017, which benefited the loss ratio by 5.9 percentage points compared to favorable development of $10.8 million during the three months endedDecember 31, 2016, which benefited the loss ratio by 4.5 percentage points. The favorable development of $19.7 million during the three months endedDecember 31, 2017 was primarily driven by favorable development on attritional losses; and

◦ Attritional losses of $246.0 million, or 73.8 percentage points of the loss ratio during the three months endedDecember 31, 2017 compared to $157.3 million, or 65.5 percentage points of the loss ratio during the three months endedDecember 31, 2016. The increase was primarily driven by the addition of CRS and a higher frequency of mid-size losses which did not meet the non-notable loss threshold.

• Policy acquisition cost ratio for the three months endedDecember 31, 2017 was 18.1% compared to 24.3% for the three months endedDecember 31, 2016, a decrease of 6.2 percentage points. The decrease was primarily driven by new agriculture business written during the three months endedDecember 31, 2017 which carries lower acquisition costs.

• General and administrative expensesfor the three months endedDecember 31, 2017 were $64.9 million compared to $33.1 million for the three months endedDecember 31, 2016, an increase of $31.9 million or 96.4%. General and administrative expenses for the three months endedDecember 31, 2017 included $11.8 million of CRS expenses, of which $1.8 million related to the amortization of intangible assets acquired. The remaining increase in general and administrative expenses was

Validus Holdings, Ltd. 29 Richmond Road, Pembroke, Bermuda HM08

Tel: +1-441.278.9000 Fax: +1-441.278.9090

www.validusholdings.com

6

primarily driven by a higher allocation of costs to the segment during the three months ended December 31, 2017 and a reduction in the performance bonus accrual during the three months ended December 31, 2016.

• Combined ratio for the three months endedDecember 31, 2017 and 2016 was 112.2% and 108.1%, respectively, an increase of 4.1 percentage points.

• Underwriting (loss)for the three months endedDecember 31, 2017 was $(36.8) million compared to $(19.1) million for the three months endedDecember 31, 2016, an increase of $17.6 million or 92.1%.

Asset Management Segment

Highlights for the fourth quarter 2017 were as follows:

• Assets under managementwere $3.4 billion as at January 1, 2018, compared to $2.9 billion as at October 1, 2017, of which third party assets under management were $3.2 billion as at January 1, 2018, compared to $2.7 billion as at October 1, 2017. During the three months endedJanuary 1, 2018, a total of $1,045.3 million of capital was raised, of which $1,029.1 million was raised from third parties. During the three months endedJanuary 1, 2018, $402.4 million was returned to investors, of which $401.4 million was returned to third party investors.

• Fee revenues earned for the three months endedDecember 31, 2017 were $5.5 million compared to $4.7 million during the three months endedDecember 31, 2016, an increase of $0.8 million or 17.4%. Third party fee revenues earned during the three months endedDecember 31, 2017 were $5.1 million compared to $3.9 million during the three months endedDecember 31, 2016, an increase of $1.1 million or 28.8%. The increase in third party fee revenues was primarily driven by an increase in management fees as a result of an increase in assets under management over the last twelve months.

• Total expenses for the three months endedDecember 31, 2017 were $2.6 million compared to $2.9 million during the three months endedDecember 31, 2016, a decrease of $0.3 million, or 10.1%.

• Validus’ share of investment (loss) from AlphaCat Funds and Sidecars for the three months endedDecember 31, 2017 was $(4.0) million compared to income of $4.5 million during the three months endedDecember 31, 2016, a decrease of $8.5 million. The decrease was driven by the fourth quarter 2017 notable loss events.

• Asset Management segment (loss) for the three months endedDecember 31, 2017 was $(1.1) million compared to income of $6.3 million during the three months endedDecember 31, 2016, a decrease of $7.4 million.

Managed investments

Highlights for the fourth quarter 2017 were as follows:

• Managed net investment income for the three months endedDecember 31, 2017 was $41.6 million compared to $35.9 million for the three months endedDecember 31, 2016, an increase of $5.7 million, or 16.0%. The increase was primarily driven by increased returns on the Company’s portfolio of managed fixed maturities and other investments.

• Annualized effective yield on managed investments for the three months endedDecember 31, 2017 was 2.44%, compared to 2.25% for the three months endedDecember 31, 2016, an increase of 19 basis points.

• Net realized gains on managed investments for the three months endedDecember 31, 2017 were $7.2 million compared to $9.2 million for the three months endedDecember 31, 2016.

• Change in net unrealized (losses) on managed investments for the three months endedDecember 31, 2017 was $(24.9) million compared to $(67.7) million for the three months endedDecember 31, 2016. Changes in unrealized (losses) on managed investments during the three months endedDecember 31, 2017 were primarily driven by the impact of interest rate increases on the Company’s managed fixed maturity portfolio.

• Income from investment affiliates for the three months endedDecember 31, 2017 was $6.3 million compared to $2.2 million for the three months endedDecember 31, 2016, an increase of $4.2 million, or 192.9%. The income from investment affiliates represents equity earnings on investments in funds managed by Aquiline Capital Partners LLC.

Validus Holdings, Ltd. 29 Richmond Road, Pembroke, Bermuda HM08

Tel: +1-441.278.9000 Fax: +1-441.278.9090

www.validusholdings.com

7

Corporate expenses and other items

Highlights for the fourth quarter 2017 were as follows:

• General and administrative expensesfor the three months endedDecember 31, 2017 were $5.6 million compared to $20.0 million for the three months endedDecember 31, 2016, a decrease of $14.4 million, or 72.1%. The decrease was primarily driven by a lower bonus accrual and a higher allocation of costs to reporting segments during the three months endedDecember 31, 2017.

• Share compensation expensesfor the three months endedDecember 31, 2017 were $4.1 million compared to $3.9 million for the three months endedDecember 31, 2016, an increase of $0.3 million, or 7.5%.

• Finance expensesfor the three months endedDecember 31, 2017 were $15.7 million compared to $14.5 million for the three months endedDecember 31, 2016, an increase of $1.2 million, or 8.2%. The increase was primarily driven by interest expenses relating to short-term borrowings which were repaid in full during the three months endedDecember 31, 2017.

• Dividends paid on preferred sharesfor the three months endedDecember 31, 2017 were $5.8 million compared to $2.2 million for the three months endedDecember 31, 2016, an increase of $3.6 million, or 164.5% due to $250.0 million of new preferred shares issued during the second quarter of 2017.

• Tax (benefit)for the three months endedDecember 31, 2017 was $(0.4) million compared to $(21.2) million for the three months endedDecember 31, 2016. The tax benefit during the three months endedDecember 31, 2017 mainly related to operating losses in the Insurance segment and was partially offset by the re-measurement of net deferred taxes following U.S. Tax Reform. The tax benefit during the three months endedDecember 31, 2016 related to a partial release of a valuation allowance which had been applied against a deferred tax asset related to net operating losses acquired as part of the Company’s acquisition of Flagstone. The release was due to the Company believing it is more-likely-than-not that it will have sufficient future taxable income to realize a portion of that deferred tax asset over three years beginning in 2017 and in accordance with U.S. GAAP, the Company was required to record a tax benefit of $18.4 million during the fourth quarter of 2016.

• Foreign exchange (losses)for the three months endedDecember 31, 2017 were $(0.8) million compared to $(0.9) million for the three months endedDecember 31, 2016.

Shareholders’ Equity and Capitalization

As at December 31, 2017, total shareholders’ equity was $3.9 billion including $16.7 million of noncontrolling interests and $400.0 million of preferred shares. Shareholders’ equity available to Validus common shareholders was $3.5 billion as at December 31, 2017. Total capitalization available to Validus at December 31, 2017 was $4.7 billion, including $539.2 million of junior subordinated deferrable debentures and $245.6 million of senior notes. Total capitalization at December 31, 2017 was $5.7 billion, including $1.0 billion of redeemable noncontrolling interests and $16.7 million of noncontrolling interests related to AlphaCat.

Book value per common share was $44.06 at December 31, 2017 based on 79,319,550 common shares outstanding, compared to $44.51 at September 30, 2017 based on 79,457,253 common shares outstanding. Book value per diluted common share was $42.71 at December 31, 2017 based on 81,823,409 diluted common shares outstanding, compared to $43.13 at September 30, 2017 based on 82,001,606 diluted common shares outstanding, a decrease of 0.1%, inclusive of dividends for the three months endedDecember 31, 2017. Book value per diluted common share is a non-GAAP financial measure. A reconciliation of book value per common share, the most comparable GAAP measure, to book value per diluted common share is presented at the end of this release.

Validus Holdings, Ltd. 29 Richmond Road, Pembroke, Bermuda HM08

Tel: +1-441.278.9000 Fax: +1-441.278.9090

www.validusholdings.com

8

Share Repurchases

The Company repurchased 175,308 common shares during the three months endedDecember 31, 2017. A summary of the common share repurchases made to date under the Company’s previously announced share repurchase programs is as follows:

	Total shares repurchased under publicly announced repurchase program
(Dollars in thousands, except share and per share amounts)	Total number of shares repurchased	Aggregate Purchase Price (a)		Average Price per Share (a)		Approximate dollar value of shares that may yet be purchased under the Program
Cumulative inception-to-date to December 31, 2016	80,508,849	$	2,704,406	$	33.59	$	319,995
Cumulative for the nine months ended September 30, 2017	351,812	18,343		$	52.14	$	301,652
October 1 - 31, 2017	—	—		—		$	301,652
November 1 - 30, 2017	—	—		—		$	301,652
December 1 - 31, 2017	175,308	8,226		$	46.92	$	293,426
Cumulative for the three months ended December 31, 2017	175,308	8,226		$	46.92
Cumulative for the year ended December 31, 2017	527,120	26,569		$	50.40
Cumulative inception-to-date to December 31, 2017	81,035,969	$	2,730,975	$	33.70	$	293,426
Repurchases made subsequent to year-end:
January 1 - 31, 2018	—	—		—		$	293,426

(a) Share transactions are on a trade date basis through January 31, 2018 and are inclusive of commissions. Average share price is rounded to two decimal places.

Validus Holdings, Ltd. 29 Richmond Road, Pembroke, Bermuda HM08

Tel: +1-441.278.9000 Fax: +1-441.278.9090

www.validusholdings.com

9

Year to Date 2017 Results

Highlights for the year to date 2017 were as follows:

• Gross premiums written for the year endedDecember 31, 2017 were $2,950.9 million compared to $2,648.7 million for the year endedDecember 31, 2016, an increase of $302.2 million, or 11.4%.

• Reinsurance premiums cededfor the year endedDecember 31, 2017 were $469.6 million compared to $289.7 million for the year endedDecember 31, 2016, an increase of $179.9 million, or 62.1%.

• Net premiums earnedfor the year endedDecember 31, 2017 were $2,581.1 million compared to $2,249.2 million for the year endedDecember 31, 2016, an increase of $331.9 million, or 14.8%.

• Loss ratio for the year endedDecember 31, 2017 and 2016 was 89.1% and 47.4%, respectively, and included the following:

◦ Notable losses of $1,046.9 million, or 40.6 percentage points of the loss ratio during the year endedDecember 31, 2017 compared to $90.2 million, or 4.0 percentage points of the loss ratio during the year endedDecember 31, 2016. Notable losses during the year endedDecember 31, 2017 included $603.4 million, or 23.4 percentage points of the loss ratio, of losses attributable to AlphaCat investors and noncontrolling interests, compared to $21.7 million, or 1.0 percentage point of the loss ratio during the year endedDecember 31, 2016;

◦ Non-notable losses of $50.6 million, or 2.0 percentage points of the loss ratio during the year endedDecember 31, 2017 compared to $70.2 million, or 3.1 percentage points of the loss ratio during the year endedDecember 31, 2016;

◦ Favorable loss reserve development on prior accident years of $222.5 million during the year endedDecember 31, 2017, which benefited the loss ratio by 8.6 percentage points compared to favorable development of $216.2 million during the year endedDecember 31, 2016, which benefited the loss ratio by 9.6 percentage points; and

◦ Attritional losses of $1,425.2 million or 55.1 percentage points of the loss ratio during the year endedDecember 31, 2017 compared to $1,120.8 million, or 49.9 percentage points of the loss ratio during the year endedDecember 31, 2016.

• Combined ratio for the year endedDecember 31, 2017 and 2016 was 122.6% and 84.2%, respectively, an increase of 38.4 percentage points.

• Total managed investment return from our managed investment portfolio for the year endedDecember 31, 2017 was $188.8 million compared to $168.4 million for the year endedDecember 31, 2016, an increase of $20.4 million, or 12.1%.

• Annualized return on average equityfor the year endedDecember 31, 2017 of (1.7)%, compared to 9.7% for the year endedDecember 31, 2016.

• Annualized net operating return on average equity for the year endedDecember 31, 2017 of (2.3)%, compared to 8.7% for the year endedDecember 31, 2016.

Validus Holdings, Ltd. 29 Richmond Road, Pembroke, Bermuda HM08

Tel: +1-441.278.9000 Fax: +1-441.278.9090

www.validusholdings.com

10

About Validus Holdings, Ltd.

Validus Holdings, Ltd. is a leading global provider of reinsurance, insurance, and asset management services, delivering its premier solutions through four diversified yet complementary operating companies: Validus Reinsurance, Ltd., a global reinsurance group focused primarily on treaty reinsurance; Talbot Underwriting Ltd., a specialty (re)insurance group operating within the Lloyd’s market through Syndicate 1183; Western World Insurance Group, Inc., a U.S. specialty lines organization; and AlphaCat Managers, Ltd., a Bermuda-based investment advisor managing capital for third parties and Validus through insurance-linked securities and other property catastrophe and specialty reinsurance investments.

Research and analytics are at the core of Validus’ operations and provide its team of expert practitioners with the knowledge and insight required to effectively model and interpret risk – an approach that consistently benefits clients and ensures their needs are met. Validus maintains a worldwide presence with more than 1,000 employees in 19 offices across all major regions and is listed on the New York Stock Exchange under the ticker symbol VR.

More information about the Validus group of companies can be found at validusholdings.com.

Contacts:

Investors: Media:

Validus Holdings, Ltd. Brunswick Group

Investor.Relations@validusholdings.com Mustafa Riffat / Charlotte Connerton

+1-441-278-9000 +1-212-333-3810

Validus Holdings, Ltd. 29 Richmond Road, Pembroke, Bermuda HM08

Tel: +1-441.278.9000 Fax: +1-441.278.9090

www.validusholdings.com

11

Validus Holdings, Ltd.

Consolidated Balance Sheets

As at December 31, 2017 and 2016

(Expressed in thousands of U.S. dollars, except share and per share information)

	December 31, 2017			December 31, 2016
Assets
Fixed maturity investments trading, at fair value (amortized cost: 2017—$5,876,261; 2016—$5,584,599)	$	5,858,348		$	5,543,030
Short-term investments trading, at fair value (amortized cost: 2017—$3,381,714; 2016—$2,796,358)	3,381,757			2,796,170
Other investments, at fair value (cost: 2017—$330,416; 2016—$380,130)	355,218			405,712
Investments in investment affiliates, equity method (cost: 2017—$61,944; 2016—$84,840)	100,137			100,431
Cash and cash equivalents	754,990			419,976
Restricted cash	394,663			70,956
Total investments and cash	10,845,113			9,336,275
Premiums receivable	939,487			725,390
Deferred acquisition costs	213,816			209,227
Prepaid reinsurance premiums	132,938			77,996
Securities lending collateral	2,717			9,779
Loss reserves recoverable	1,233,997			430,421
Paid losses recoverable	46,873			35,247
Income taxes recoverable	9,044			4,870
Deferred tax asset	52,467			43,529
Receivable for investments sold	12,182			3,901
Intangible assets	171,411			115,592
Goodwill	229,573			196,758
Accrued investment income	29,096			26,488
Other assets	508,165			134,282
Total assets	$	14,426,879		$	11,349,755
Liabilities
Reserve for losses and loss expenses	$	4,831,390		$	2,995,195
Unearned premiums	1,147,186			1,076,049
Reinsurance balances payable	331,645			54,781
Securities lending payable	2,717			10,245
Deferred tax liability	4,600			3,331
Payable for investments purchased	74,496			29,447
Accounts payable and accrued expenses	1,225,875			587,648
Notes payable to AlphaCat investors	1,108,364			278,202
Senior notes payable	245,564			245,362
Debentures payable	539,158			537,226
Total liabilities	9,510,995			5,817,486
Commitments and contingent liabilities
Redeemable noncontrolling interests	1,004,094			1,528,001
Shareholders’ equity
Preferred shares (Issued and Outstanding: 2017—16,000; 2016—6,000)	400,000			150,000
Common shares (Issued: 2017—161,994,491; 2016—161,279,976; Outstanding: 2017—79,319,550; 2016—79,132,252)	28,349			28,224
Treasury shares (2017—82,674,941; 2016—82,147,724)	(14,468		)	(14,376		)
Additional paid-in capital	814,641			821,023
Accumulated other comprehensive loss	(22,192		)	(23,216		)
Retained earnings	2,688,742			2,876,636
Total shareholders’ equity available to Validus	3,895,072			3,838,291
Noncontrolling interests	16,718			165,977
Total shareholders’ equity	3,911,790			4,004,268
Total liabilities, noncontrolling interests and shareholders’ equity	$	14,426,879		$	11,349,755

Validus Holdings, Ltd. 29 Richmond Road, Pembroke, Bermuda HM08

Tel: +1-441.278.9000 Fax: +1-441.278.9090

www.validusholdings.com

12

Validus Holdings, Ltd.

Consolidated Statements of (Loss) Income

For the three months and years endedDecember 31, 2017 and 2016

(Expressed in thousands of U.S. dollars, except share and per share information)

	Three Months Ended December 31,						Years Ended December 31,
	2017			2016			2017			2016
Revenues
Gross premiums written	$	443,323		$	339,454		$	2,950,938		$	2,648,705
Reinsurance premiums ceded	(96,445		)	(40,635		)	(469,633		)	(289,705		)
Net premiums written	346,878			298,819			2,481,305			2,359,000
Change in unearned premiums	304,599			241,580			99,783			(109,835		)
Net premiums earned	651,477			540,399			2,581,088			2,249,165
Net investment income	48,960			38,153			177,873			150,385
Net realized gains on investments	5,607			9,220			7,623			15,757
Change in net unrealized (losses) gains on investments	(21,257		)	(67,460		)	3,215			16,871
Income (loss) from investment affiliates	6,345			2,166			22,010			(2,083		)
Other insurance related income and other income (loss)	6,939			568			13,179			2,195
Foreign exchange (losses) gains	(283		)	(901		)	(7,447		)	10,864
Total revenues	697,788			522,145			2,797,541			2,443,154
Expenses
Losses and loss expenses	479,842			275,126			2,300,178			1,065,097
Policy acquisition costs	127,067			120,889			471,553			449,482
General and administrative expenses	97,522			77,955			352,137			336,294
Share compensation expenses	10,031			10,442			40,111			42,907
Finance expenses	15,871			14,630			58,546			58,520
Transaction expenses	—			—			4,427			—
Total expenses	730,333			499,042			3,226,952			1,952,300
(Loss) income before taxes, (loss) from operating affiliate and (income) loss attributable to AlphaCat investors	(32,545		)	23,103			(429,411		)	490,854
Tax benefit	412			21,147			7,580			19,729
Loss from operating affiliate	—			—			—			(23		)
(Income) loss attributable to AlphaCat investors	(37,868		)	(7,080		)	16,929			(23,358		)
Net (loss) income	(70,001		)	37,170			(404,902		)	487,202
Net loss (income) attributable to noncontrolling interests	67,136			(27,200		)	357,280			(123,363		)
Net (loss) income (attributable) available to Validus	(2,865		)	9,970			(47,622		)	363,839
Dividends on preferred shares	(5,828		)	(2,203		)	(15,861		)	(4,455		)
Net (loss) income (attributable) available to Validus common shareholders	$	(8,693	)	$	7,767		$	(63,483	)	$	359,384
Selected ratios:
Ratio of net to gross premiums written	78.2		%	88.0		%	84.1		%	89.1		%
Losses and loss expense ratio	73.7		%	50.9		%	89.1		%	47.4		%
Policy acquisition cost ratio	19.5		%	22.4		%	18.3		%	20.0		%
General and administrative expense ratio	16.5		%	16.3		%	15.2		%	16.8		%
Expense ratio	36.0		%	38.7		%	33.5		%	36.8		%
Combined ratio	109.7		%	89.6		%	122.6		%	84.2		%

Validus Holdings, Ltd. 29 Richmond Road, Pembroke, Bermuda HM08

Tel: +1-441.278.9000 Fax: +1-441.278.9090

www.validusholdings.com

13

Validus Holdings, Ltd.

Segment Information

For the three months and years endedDecember 31, 2017 and 2016

(Expressed in thousands of U.S. dollars, except share and per share information)

Reinsurance Segment	Three Months Ended December 31,						Years Ended December 31,
	2017			2016			2017			2016
Underwriting revenues
Gross premiums written	$	51,960		$	41,813		$	1,195,207		$	1,184,912
Reinsurance premiums ceded	(40,716		)	(7,773		)	(209,289		)	(121,331		)
Net premiums written	11,244			34,040			985,918			1,063,581
Change in unearned premiums	239,320			200,129			37,086			(67,432		)
Net premiums earned	250,564			234,169			1,023,004			996,149
Other insurance related income	15			9			67			25
Total underwriting revenues	250,579			234,178			1,023,071			996,174
Underwriting deductions
Losses and loss expenses	135,804			93,503			692,719			415,505
Policy acquisition costs	58,107			55,352			199,430			189,797
General and administrative expenses	23,604			21,248			80,177			85,000
Share compensation expenses	2,331			2,811			10,762			11,668
Total underwriting deductions	219,846			172,914			983,088			701,970
Underwriting income	$	30,733		$	61,264		$	39,983		$	294,204

Insurance Segment	Three Months Ended December 31,						Years Ended December 31,
	2017			2016			2017			2016
Underwriting revenues
Gross premiums written	$	377,014		$	297,905		$	1,453,133		$	1,194,137
Reinsurance premiums ceded	(56,378		)	(32,862		)	(261,055		)	(162,669		)
Net premiums written	320,636			265,043			1,192,078			1,031,468
Change in unearned premiums	12,393			(24,900		)	64,007			(28,524		)
Net premiums earned	333,029			240,143			1,256,085			1,002,944
Other insurance related income	3,957			284			7,035			1,367
Total underwriting revenues	336,986			240,427			1,263,120			1,004,311
Underwriting deductions
Losses and loss expenses	244,908			164,417			934,199			604,741
Policy acquisition costs	60,403			58,394			241,186			232,780
General and administrative expenses	64,945			33,069			207,186			165,529
Share compensation expenses	3,512			3,693			12,774			14,987
Total underwriting deductions	373,768			259,573			1,395,345			1,018,037
Underwriting (loss)	$	(36,782	)	$	(19,146	)	$	(132,225	)	$	(13,726	)

Validus Holdings, Ltd. 29 Richmond Road, Pembroke, Bermuda HM08

Tel: +1-441.278.9000 Fax: +1-441.278.9090

www.validusholdings.com

14

Validus Holdings, Ltd.

Segment Information

For the three months and years endedDecember 31, 2017 and 2016

(Expressed in thousands of U.S. dollars, except share and per share information)

Asset Management Segment	Three Months Ended December 31,					Years Ended December 31,
	2017			2016		2017			2016
Fee revenues
Third party	$	5,061		$	3,928	$	20,349		$	18,771
Related party	418			737		2,150			3,329
Total fee revenues	5,479			4,665		22,499			22,100
Expenses
General and administrative expenses	2,582			2,676		12,904			10,233
Share compensation expenses	41			82		389			249
Finance expenses	30			33		137			947
Tax (benefit) expense	(61		)	90		8			90
Foreign exchange losses	—			2		7			19
Total expenses	2,592			2,883		13,445			11,538
Income before investment (loss) income from AlphaCat Funds and Sidecars	2,887			1,782		9,054			10,562
Investment (loss) income from AlphaCat Funds and Sidecars (a)
AlphaCat Sidecars	11			14		79			607
AlphaCat ILS Funds - Lower Risk (b)	961			1,998		(3,102		)	8,901
AlphaCat ILS Funds - Higher Risk (b)	(5,813		)	1,864		(22,662		)	7,471
BetaCat ILS Funds	827			644		536			3,623
PaCRe	—			—		—			(23		)
Validus' share of investment (loss) income from AlphaCat Funds and Sidecars	(4,014		)	4,520		(25,149		)	20,579
Asset Management segment (loss) income	$	(1,127	)	$	6,302	$	(16,095	)	$	31,141

(a) The investment income (loss) from AlphaCat funds and sidecars is based on equity accounting.

(b) Lower risk AlphaCat ILS funds have a maximum permitted portfolio expected loss of less than 7%, whereas higher risk AlphaCat ILS funds have a maximum permitted portfolio expected loss of greater than 7%. Expected loss represents the average annual loss over the set of simulation scenarios divided by the total limit.

Corporate and Investments	Three Months Ended December 31,						Years Ended December 31,
	2017			2016			2017			2016
Managed investments
Managed net investment income (a)	$	41,609		$	35,875		$	152,955		$	141,718
Net realized gains on managed investments (a)	7,157			9,166			7,437			14,680
Change in net unrealized (losses) gains on managed investments (a)	(24,861		)	(67,676		)	6,371			14,106
Income (loss) from investment affiliates	6,345			2,166			22,010			(2,083		)
Total managed investment return	$	30,250		$	(20,469	)	$	188,773		$	168,421
Corporate expenses
General and administrative expenses	$	5,582		$	19,973		$	48,598		$	72,249
Share compensation expenses	4,147			3,856			16,186			16,003
Finance expenses (a)	15,732			14,546			58,194			57,183
Dividends on preferred shares	5,828			2,203			15,861			4,455
Tax (benefit) (a)	(351		)	(21,237		)	(7,588		)	(19,819		)
Total Corporate expenses	$	30,938		$	19,341		$	131,251		$	130,071
Other items
Foreign exchange (losses) gains (a)	(829		)	(850		)	(8,544		)	10,778
Other income (loss)	—			7			303			(766		)
Transaction expenses	—			—			(4,427		)	—
Total other items	$	(829	)	$	(843	)	$	(12,668	)	$	10,012
Total Corporate and Investments	$	(1,517	)	$	(40,653	)	$	44,854		$	48,362

(a) These items exclude the components which are included in the Asset Management segment income (loss) and amounts which are consolidated from variable interest entities.

Validus Holdings, Ltd. 29 Richmond Road, Pembroke, Bermuda HM08

Tel: +1-441.278.9000 Fax: +1-441.278.9090

www.validusholdings.com

15

Validus Holdings, Ltd.

Segment Information

For the three months endedDecember 31, 2017 and 2016

(Expressed in thousands of U.S. dollars, except share and per share information)

	Three Months Ended December 31, 2017
	Reinsurance Segment			Insurance Segment			Asset Management Segment and Consolidated VIEs			Corporate & Investments			Eliminations			Total
Underwriting revenues
Gross premiums written	$	51,960		$	377,014		$	14,998		$	—		$	(649	)	$	443,323
Reinsurance premiums ceded	(40,716		)	(56,378		)	—			—			649			(96,445		)
Net premiums written	11,244			320,636			14,998			—			—			346,878
Change in unearned premiums	239,320			12,393			52,886			—			—			304,599
Net premiums earned	250,564			333,029			67,884			—			—			651,477
Other insurance related income	15			3,957			6,778			—			(3,811		)	6,939
Total underwriting revenues	250,579			336,986			74,662			—			(3,811		)	658,416
Underwriting deductions
Losses and loss expenses	135,804			244,908			99,130			—			—			479,842
Policy acquisition costs	58,107			60,403			8,557			—			—			127,067
General and administrative expenses	23,604			64,945			7,202			5,582			(3,811		)	97,522
Share compensation expenses	2,331			3,512			41			4,147			—			10,031
Total underwriting deductions	219,846			373,768			114,930			9,729			(3,811		)	714,462
Underwriting income (loss)	$	30,733		$	(36,782	)	$	(40,268	)	$	(9,729	)	$	—		$	(56,046	)
Net investment return (a)	—			—			9,405			30,250			—			39,655
Other items (b)	—			—			468			(22,038		)	—			(21,570		)
(Income) attributable to AlphaCat investors	—			—			(37,868		)	—			—			(37,868		)
Net loss attributable to noncontrolling interests	—			—			67,136			—			—			67,136
Net income (loss) available (attributable) to Validus common shareholders	$	30,733		$	(36,782	)	$	(1,127	)	$	(1,517	)	$	—		$	(8,693	)

	Three Months Ended December 31, 2016
	Reinsurance Segment			Insurance Segment			Asset Management Segment and Consolidated VIEs			Corporate & Investments			Eliminations			Total
Underwriting revenues
Gross premiums written	$	41,813		$	297,905		$	(264	)	$	—		$	—		$	339,454
Reinsurance premiums ceded	(7,773		)	(32,862		)	—			—			—			(40,635		)
Net premiums written	34,040			265,043			(264		)	—			—			298,819
Change in unearned premiums	200,129			(24,900		)	66,351			—			—			241,580
Net premiums earned	234,169			240,143			66,087			—			—			540,399
Other insurance related income	9			284			4,664			—			(4,396		)	561
Total underwriting revenues	234,178			240,427			70,751			—			(4,396		)	540,960
Underwriting deductions
Losses and loss expenses	93,503			164,417			17,206			—			—			275,126
Policy acquisition costs	55,352			58,394			7,143			—			—			120,889
General and administrative expenses	21,248			33,069			8,061			19,973			(4,396		)	77,955
Share compensation expenses	2,811			3,693			82			3,856			—			10,442
Total underwriting deductions	172,914			259,573			32,492			23,829			(4,396		)	484,412
Underwriting income (loss)	$	61,264		$	(19,146	)	$	38,259		$	(23,829	)	$	—		$	56,548
Net investment return (a)	—			—			2,548			(20,469		)	—			(17,921		)
Other items (b)	—			—			(225		)	3,645			—			3,420
(Income) attributable to AlphaCat investors	—			—			(7,080		)	—			—			(7,080		)
Net (income) attributable to noncontrolling interests	—			—			(27,200		)	—			—			(27,200		)
Net income (loss) available (attributable) to Validus common shareholders	$	61,264		$	(19,146	)	$	6,302		$	(40,653	)	$	—		$	7,767

(a) Net investment return includes net investment income, net realized and change in net unrealized gains (losses) on investments and income (loss) from investment affiliates.

(b) Other items includes finance expenses, transaction expenses, dividends on preferred shares, tax benefit (expense), foreign exchange gains (losses), income (loss) from operating affiliate and other income (loss).

Validus Holdings, Ltd. 29 Richmond Road, Pembroke, Bermuda HM08

Tel: +1-441.278.9000 Fax: +1-441.278.9090

www.validusholdings.com

16

Validus Holdings, Ltd.

Segment Information

For the years endedDecember 31, 2017 and 2016

(Expressed in thousands of U.S. dollars, except share and per share information)

	Year Ended December 31, 2017
	Reinsurance Segment			Insurance Segment			Asset Management Segment and Consolidated VIEs			Corporate & Investments			Eliminations			Total
Underwriting revenues
Gross premiums written	$	1,195,207		$	1,453,133		$	312,819		$	—		$	(10,221	)	$	2,950,938
Reinsurance premiums ceded	(209,289		)	(261,055		)	(9,510		)	—			10,221			(469,633		)
Net premiums written	985,918			1,192,078			303,309			—			—			2,481,305
Change in unearned premiums	37,086			64,007			(1,310		)	—			—			99,783
Net premiums earned	1,023,004			1,256,085			301,999			—			—			2,581,088
Other insurance related income	67			7,035			23,896			—			(18,122		)	12,876
Total underwriting revenues	1,023,071			1,263,120			325,895			—			(18,122		)	2,593,964
Underwriting deductions
Losses and loss expenses	692,719			934,199			673,260			—			—			2,300,178
Policy acquisition costs	199,430			241,186			30,937			—			—			471,553
General and administrative expenses	80,177			207,186			34,298			48,598			(18,122		)	352,137
Share compensation expenses	10,762			12,774			389			16,186			—			40,111
Total underwriting deductions	983,088			1,395,345			738,884			64,784			(18,122		)	3,163,979
Underwriting income (loss)	$	39,983		$	(132,225	)	$	(412,989	)	$	(64,784	)	$	—		$	(570,015	)
Net investment return (a)	—			—			21,948			188,773			—			210,721
Other items (b)	—			—			737			(79,135		)	—			(78,398		)
Loss attributable to AlphaCat investors	—			—			16,929			—			—			16,929
Net loss attributable to noncontrolling interests	—			—			357,280			—			—			357,280
Net income (loss) available (attributable) to Validus common shareholders	$	39,983		$	(132,225	)	$	(16,095	)	$	44,854		$	—		$	(63,483	)

	Year Ended December 31, 2016
	Reinsurance Segment			Insurance Segment			Asset Management Segment and Consolidated VIEs			Corporate & Investments			Eliminations			Total
Underwriting revenues
Gross premiums written	$	1,184,912		$	1,194,137		$	270,402		$	—		$	(746	)	$	2,648,705
Reinsurance premiums ceded	(121,331		)	(162,669		)	(6,451		)	—			746			(289,705		)
Net premiums written	1,063,581			1,031,468			263,951			—			—			2,359,000
Change in unearned premiums	(67,432		)	(28,524		)	(13,879		)	—			—			(109,835		)
Net premiums earned	996,149			1,002,944			250,072			—			—			2,249,165
Other insurance related income	25			1,367			22,386			—			(20,817		)	2,961
Total underwriting revenues	996,174			1,004,311			272,458			—			(20,817		)	2,252,126
Underwriting deductions
Losses and loss expenses	415,505			604,741			44,851			—			—			1,065,097
Policy acquisition costs	189,797			232,780			26,905			—			—			449,482
General and administrative expenses	85,000			165,529			34,333			72,249			(20,817		)	336,294
Share compensation expenses	11,668			14,987			249			16,003			—			42,907
Total underwriting deductions	701,970			1,018,037			106,338			88,252			(20,817		)	1,893,780
Underwriting income (loss)	$	294,204		$	(13,726	)	$	166,120		$	(88,252	)	$	—		$	358,346
Net investment return (a)	—			—			13,106			168,421			(597		)	180,930
Other items (b)	—			—			(1,364		)	(31,807		)	—			(33,171		)
(Income) attributable to AlphaCat investors	—			—			(23,358		)	—			—			(23,358		)
Net (income) attributable to noncontrolling interests	—			—			(123,363		)	—			—			(123,363		)
Net income (loss) available (attributable) to Validus common shareholders	$	294,204		$	(13,726	)	$	31,141		$	48,362		$	(597	)	$	359,384

(a) Net investment return includes net investment income, net realized and change in net unrealized gains (losses) on investments and income (loss) from investment affiliates.

(b) Other items includes finance expenses, transaction expenses, dividends on preferred shares, tax benefit (expense), foreign exchange gains (losses), income (loss) from operating affiliate and other income (loss).

Validus Holdings, Ltd. 29 Richmond Road, Pembroke, Bermuda HM08

Tel: +1-441.278.9000 Fax: +1-441.278.9090

www.validusholdings.com

17

Non-GAAP Financial Measures

In presenting the Company’s results, management has included and discussed certain non-GAAP financial measures. The Company believes that these non-GAAP measures, which may be defined and calculated differently by other companies, better explain and enhance the understanding of the Company’s results of operations. However, these measures should not be viewed as a substitute for those determined in accordance with U.S. GAAP.

In addition to presenting book value per common share determined in accordance with U.S. GAAP, the Company believes that the following non-GAAP book value financial measures are key financial indicators for evaluating performance and measuring overall growth: book value per diluted common share, book value per diluted common share plus accumulated dividends and tangible book value per diluted common share. A reconciliation of book value per common share, a GAAP financial measure, to the non-GAAP book value financial measures has been included below.

In addition to presenting net (loss) income (attributable) available to Validus common shareholders determined in accordance with U.S. GAAP, the Company believes that showing net operating income (loss) available (attributable) to Validus common shareholders, a non-GAAP financial measure, provides investors with a valuable measure of profitability and enables investors, analysts, rating agencies and other users of its financial information to more easily analyze the Company’s results in a manner similar to how management analyzes the Company’s underlying business performance.

Net operating income (loss) available (attributable) to Validus common shareholders, a non-GAAP financial measure, is calculated by the addition or subtraction of certain Consolidated Statement of (Loss) Income line items from net (loss) income (attributable) available to Validus common shareholders, the most directly comparable GAAP financial measure, and measures the performance of the Company’s operations without the influence of gains or losses on investments and foreign currencies and other items as noted in the reconciliation below. The Company excludes these items from its calculation of net operating income (loss) available (attributable) to Validus common shareholders because the amount of these gains and losses is heavily influenced by, and fluctuates in part, according to availability of investment market opportunities and other factors. The Company believes these amounts are largely independent of its core underwriting activities and including them distorts the analysis of trends in its operations. The Company believes the reporting of net operating income (loss) available (attributable) to Validus common shareholders enhances the understanding of results by highlighting the underlying profitability of the Company’s core (re)insurance operations. This profitability is influenced significantly by earned premium growth, adequacy of the Company’s pricing, as well as loss frequency and severity. Over time it is also influenced by the Company’s underwriting discipline, which seeks to manage exposure to loss through favorable risk selection and diversification, its management of claims, its use of reinsurance and its ability to manage its expense ratio, which it accomplishes through its management of acquisition costs and other underwriting expenses.

Return on average equity, a GAAP financial measure, and net operating return on average equity, a non-GAAP financial measure, represents the returns generated on common shareholders’ equity during the year and are presented below.

Validus Holdings, Ltd. 29 Richmond Road, Pembroke, Bermuda HM08

Tel: +1-441.278.9000 Fax: +1-441.278.9090

www.validusholdings.com

18

Validus Holdings, Ltd.

Non-GAAP Financial Measures Reconciliation

Book Value per Common Share, Book Value per Diluted Common Share and Tangible Book Value per Diluted Common Share

As at December 31, 2017 and 2016

(Expressed in thousands of U.S. dollars, except share and per share information)

	December 31, 2017
	Equity Amount			Common Shares	Per Share Amount (a)
Book value per common share (b)	$	3,495,072		79,319,550	$	44.06
Non-GAAP Adjustments:
Assumed exercise of outstanding stock options (c)(d)	—			—
Unvested restricted shares	—			2,503,859
Book value per diluted common share (e)	3,495,072			81,823,409	$	42.71
Goodwill	(229,573		)	—
Intangible assets	(171,411		)	—
Tangible book value per diluted common share (e)	$	3,094,088		81,823,409	$	37.81
Book value per diluted common share (e)					$	42.71
Accumulated dividends					13.08
Book value per diluted common share plus accumulated dividends (e)					$	55.79

	December 31, 2016
	Equity Amount			Common Shares	Per Share Amount (a)
Book value per common share (b)	$	3,688,291		79,132,252	$	46.61
Non-GAAP Adjustments:
Assumed exercise of outstanding stock options (c)(d)	614			26,136
Unvested restricted shares	—			2,868,610
Book value per diluted common share (e)	3,688,905			82,026,998	$	44.97
Goodwill	(196,758		)	—
Intangible assets	(115,592		)	—
Tangible book value per diluted common share (e)	$	3,376,555		82,026,998	$	41.16
Book value per diluted common share (e)					$	44.97
Accumulated dividends					11.56
Book value per diluted common share plus accumulated dividends (e)					$	56.53

(a) Per share amounts are calculated by dividing the equity amount by the common shares.

(b) The equity amount used in the calculation of book value per common share represents total shareholders' equity available to Validus excluding the liquidation value of the preferred shares.

(c) Using the "as-if-converted" method, assuming all proceeds received upon exercise of stock options will be retained by the Company and the resulting common shares from exercise remain outstanding.

(d) At December 31, 2017, the weighted average exercise price for those stock options that had an exercise price lower than book value per share was $nil (December 31, 2016: $23.48).

(e) Non-GAAP financial measure.

Validus Holdings, Ltd. 29 Richmond Road, Pembroke, Bermuda HM08

Tel: +1-441.278.9000 Fax: +1-441.278.9090

www.validusholdings.com

19

Validus Holdings, Ltd.

Non-GAAP Financial Measures Reconciliation

Net Operating Income (Loss) available (attributable) to Validus Common Shareholders, Net Operating Income (Loss) per Diluted Share available (attributable) to Validus Common Shareholders and Annualized Net Operating Return on Average Equity

For the three months and years endedDecember 31, 2017 and 2016

(Expressed in thousands of U.S. dollars, except share and per share information)

	Three Months Ended December 31,						Years Ended December 31,
	2017			2016			2017			2016
Net (loss) income (attributable) available to Validus common shareholders	$	(8,693	)	$	7,767		$	(63,483	)	$	359,384
Non-GAAP Adjustments:
Net realized (gains) on investments	(5,607		)	(9,220		)	(7,623		)	(15,757		)
Change in net unrealized losses (gains) on investments	21,257			67,460			(3,215		)	(16,871		)
(Income) loss from investment affiliates	(6,345		)	(2,166		)	(22,010		)	2,083
Foreign exchange losses (gains)	283			901			7,447			(10,864		)
Other (income) loss	—			(7		)	(303		)	766
Transaction expenses	—			—			4,427			—
Net income (loss) attributable to noncontrolling interests	4,597			(412		)	(767		)	457
Tax (benefit) expense (a)	(1,339		)	(5,863		)	521			1,687
Net operating income (loss) available (attributable) to Validus common shareholders (b)	$	4,153		$	58,460		$	(85,006	)	$	320,885
Weighted average number of diluted common shares outstanding	78,966,938			80,621,967			79,091,376			82,359,460
(Loss) earnings per diluted share (attributable) available to Validus common shareholders	$	(0.11	)	$	0.10		$	(0.80	)	$	4.36
Non-GAAP Adjustments:
Net realized (gains) on investments	(0.07		)	(0.11		)	(0.10		)	(0.19		)
Change in net unrealized losses (gains) on investments	0.27			0.84			(0.04		)	(0.20		)
(Income) loss from investment affiliates	(0.08		)	(0.03		)	(0.28		)	0.03
Foreign exchange losses (gains)	—			0.01			0.09			(0.14		)
Other (income) loss	—			—			—			0.01
Transaction expenses	—			—			0.06			—
Net income (loss) attributable to noncontrolling interests	0.06			(0.01		)	(0.01		)	0.01
Tax (benefit) expense (a)	(0.02		)	(0.07		)	0.01			0.02
Net operating income (loss) per diluted share available (attributable) to Validus common shareholders (b)	$	0.05		$	0.73		$	(1.07	)	$	3.90
Average shareholders' equity available to Validus common shareholders (c)	$	3,515,680		$	3,702,956		$	3,658,591		$	3,697,114
Annualized return on average equity	(1.0		%)	0.8		%	(1.7		%)	9.7		%
Annualized net operating return on average equity (b)	0.5		%	6.3		%	(2.3		%)	8.7		%

(a) Represents the tax expense or benefit associated with the specific country to which the pre-tax adjustment relates to. The tax impact is estimated by applying the statutory rates of applicable jurisdictions, after consideration of other relevant factors including the ability to utilize tax losses carried forward.

(b) Non-GAAP financial measure.

(c) Average shareholders’ equity for the three months ended is the average of the beginning and ending quarter end shareholders’ equity balances, excluding the liquidation value of the preferred shares.

Validus Holdings, Ltd. 29 Richmond Road, Pembroke, Bermuda HM08

Tel: +1-441.278.9000 Fax: +1-441.278.9090

www.validusholdings.com

20

Cautionary Note Regarding Forward-Looking Statements

Certain statements herein may include projections, goals, assumptions and statements that may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, and Validus may make related oral, forward-looking statements on or following the date hereof. These projections, goals, assumptions and statements are not historical facts but instead represent only Validus’ belief regarding future events, many of which, by their nature, are inherently uncertain and outside Validus’ control. These projections, goals, assumptions and statements include statements preceded by, followed by or including words such as “will,” “believe,” “anticipate,” “expect,” “intend,” “plan,” “focused on achieving,” “view,” “target,” “goal,” or “estimate.” Accordingly, there are or will be important factors that could cause Validus’ actual results and financial condition to differ, possibly materially, from the results and financial condition indicated in these projections, goals, assumptions and 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; 17) availability of reinsurance and retrocessional coverage; 18) the inability to complete the proposed transaction with AIG (the “proposed transaction”) because, among other reasons, conditions to the closing of the proposed transaction may not be satisfied or waived; 19) uncertainty as to the timing of completion of the proposed transaction; 20) the inability to complete the proposed transaction due to the failure to obtain Validus shareholder approval for the proposed transaction or the failure to satisfy other conditions to completion of the proposed transaction, including that a governmental entity may prohibit, delay or refuse to grant approval for the consummation of the transaction; 21) the occurrence of any event, change or other circumstances that could give rise to the termination of the merger agreement; 22) risks related to disruption of management’s attention from Validus’ ongoing business operations due to the proposed transaction; 23) the effect of the announcement of the proposed transaction on Validus’ relationships with its clients, operating results and business generally; and 24) the outcome of any legal proceedings to the extent initiated against Validus or others following the announcement of the proposed transaction, as well as Validus’ management’s response to any of the aforementioned factors.

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 of Validus on file with or furnished to the Securities and Exchange Commission (“SEC”). Any forward-looking statements made in this material 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. Except as required by law, Validus undertakes no obligation to update publicly or revise any forward-looking statement, whether as a result of new information, future developments or otherwise.

Additional Information and Where to Find It

In connection with the proposed transaction, Validus will file with the SEC a proxy statement on Schedule 14A and may file or furnish other documents with the SEC regarding the proposed transaction. This material is not a substitute for the proxy statement or any other document which Validus may file with the SEC. INVESTORS IN AND SECURITY HOLDERS OF VALIDUS ARE URGED TO READ THE PROXY STATEMENT AND ANY OTHER RELEVANT DOCUMENTS THAT ARE FILED OR FURNISHED OR WILL BE FILED OR WILL BE FURNISHED WITH THE SEC, AS WELL AS ANY AMENDMENTS OR SUPPLEMENTS TO THESE DOCUMENTS, CAREFULLY AND IN THEIR ENTIRETY BECAUSE THEY CONTAIN OR WILL CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED TRANSACTION AND RELATED MATTERS. Investors and security holders may obtain free copies of the proxy statement (when available) and other documents filed with or furnished to the SEC by Validus through the web site maintained by the SEC at www.sec.gov or by contacting the investor relations department of Validus.

Validus Holdings, Ltd. 29 Richmond Road, Pembroke, Bermuda HM08

Tel: +1-441.278.9000 Fax: +1-441.278.9090

www.validusholdings.com

21

Participants in the Solicitation

Validus and its directors and executive officers may be deemed to be participants in the solicitation of proxies from Validus’ shareholders in connection with the proposed transaction. Information regarding Validus’ directors and executive officers, including a description of their direct interests, by security holdings or otherwise, is contained in Validus’ annual proxy statement filed with the SEC on March 16, 2017. A more complete description will be available in the proxy statement on Schedule 14A. You may obtain free copies of these documents as described in the preceding paragraph filed, with or furnished to the SEC. All such documents, when filed or furnished, are available free of charge at the SEC’s website (www.sec.gov) or by directing a request to the investor relations department of Validus.

Validus Holdings, Ltd. 29 Richmond Road, Pembroke, Bermuda HM08

Tel: +1-441.278.9000 Fax: +1-441.278.9090

www.validusholdings.com

22

EX-99.2

	Validus Holdings, Ltd.
	Investor Financial Supplement – Fourth Quarter 2017
	February 1, 2018
	29 Richmond Road
	Pembroke, HM 08 Bermuda
	Telephone: (441) 278-9000
	Facsimile: (441) 278-9090
	Website: www.validusholdings.com
	Mailing address: Suite 1790 48 Par-la-Ville Road
	Hamilton, HM 11 Bermuda

Validus Holdings, Ltd.

Table of Contents

Section	Page
Table of Contents	2
Explanatory Notes	3
Consolidated Financial Highlights	4
Summary Consolidated Balance Sheets	5
Computation of Book Value per Common Share, Book Value per Diluted Common Share and Tangible Book Value per Diluted Common Share	6
Consolidated Statements of Cash Flows	7
Consolidated Statements of (Loss) Income and Comprehensive (Loss) Income	8
Consolidated Statements of Operations - Underwriting Income Format	9
Computation of (Loss) Earnings per Share	10
Underwriting Income Statement - Reinsurance Segment	11
Underwriting Results by Class of Business - Three Months Ended - Reinsurance Segment	12
Underwriting Results by Class of Business - Years Ended - Reinsurance Segment	13
Underwriting Income Statement - Insurance Segment	14
Underwriting Results by Class of Business - Three Months Ended - Insurance Segment	15
Underwriting Results by Class of Business - Years Ended - Insurance Segment	16
Asset Management Segment Information	17
Assets Under Management	18
Corporate and Investments	19
Segment Reconciliation - Three Months Ended	20
Segment Reconciliation - Years Ended	21
Non-GAAP Financial Measure Reconciliation	22
Gross Premiums Written by Segment by Class of Business	23
Consolidated Analysis of Reserves for Losses and Loss Expenses	24
Consolidated Losses and Loss Ratios by Segment	25
Losses and Loss Ratios by Class of Business - Reinsurance Segment	26
Losses and Loss Ratios by Class of Business - Insurance Segment	27
Analysis of Loss Ratios by Segment	28
Consolidated Reinsurance Recoverable Analysis	29
Consolidated Investment Portfolio Composition and Net Investment Income	30
Consolidated Fixed Maturity Portfolio Credit Quality and Maturity Profile	31
Top Ten Exposures to Fixed Income Corporate Issuers	32
Capitalization	33
Estimated Exposures to Peak Zone Property Catastrophe Losses - As of January 1, 2018	34
Estimated Exposures to Specified Loss Scenarios - As of July 1, 2017	35

2

Validus Holdings, Ltd.

Explanatory Notes

Basis of Presentation

• This document should be read in conjunction with other documents filed by Validus Holdings, Ltd. (“Validus” or the “Company”) with the U.S. Securities and Exchange Commission pursuant to the Exchange Act of 1934, as amended.

• All financial information contained herein is unaudited; however, certain information contained herein relating to the years ended December 31, 2016 and 2015 is derived from or agrees to audited financial statements. Unless otherwise noted, dollar amounts are in thousands of U.S. dollars, except for share and per share amounts.

• The general and administrative expense ratio includes share compensation expenses.

• In accordance with authoritative accounting guidance, the Company continually monitors and reviews its segment reporting structure to determine whether any changes have occurred that would impact its reportable segments. As a result of the evolution of the Company’s operations, the global nature of the industry and synergies obtained through the acquisition and integration of Talbot Holdings, Ltd., Western World Insurance Group, Inc. and Crop Risk Services, Inc. ("CRS"), the Company’s reportable segments had become progressively more integrated such that during the fourth quarter of 2017, the Company changed its reportable segments to “Reinsurance,” “Insurance,” and “Asset Management.” Furthermore, to better align the Company’s disclosures with its current strategy, the Company also changed its primary lines of business to “Property,” “Specialty - Short-tail” and “Specialty - Other.”

• The change in reportable segments and primary lines of business had no impact on the Company’s historical consolidated financial positions, results of operations or cash flows as previously reported. Where applicable, all prior periods presented have been reclassified to conform to this new presentation.

• On June 1, 2017, the Company redeemed its investment in one of the lower risk AlphaCat ILS funds. As a result, the Company was no longer deemed to be the primary beneficiary and therefore this fund was deconsolidated effective June 1, 2017.

• On May 1, 2017, the Company acquired all of the outstanding capital stock of CRS, a primary crop insurance managing general agent ("MGA"). For segmental reporting purposes, the results of CRS have been included in the results of the Insurance segment as of the date of acquisition. Transaction expenses incurred in relation to the acquisition of CRS are primarily comprised of legal, financial advisory and audit related services.

Non-GAAP Financial Measures

• In presenting the Company’s results, management has included and discussed certain non-GAAP financial measures. The Company believes that these non-GAAP measures, which may be defined and calculated differently by other companies, better explain and enhance the understanding of the Company’s results of operations. However, these measures should not be viewed as a substitute for those determined in accordance with U.S. GAAP.

• In addition to presenting book value per common share determined in accordance with U.S. GAAP, the Company believes that the following non-GAAP book value financial measures are key financial indicators for evaluating performance and measuring overall growth: book value per diluted common share, book value per diluted common share plus accumulated dividends and tangible book value per diluted common share. A reconciliation of book value per common share, a GAAP financial measure, to the non-GAAP book value financial measures has been included on page 6.

• In addition to presenting net (loss) income (attributable) available to Validus common shareholders determined in accordance with U.S. GAAP, the Company believes that showing net operating income (loss) available (attributable) to Validus common shareholders, a non-GAAP financial measure, provides investors with a valuable measure of profitability and enables investors, analysts, rating agencies and other users of its financial information to more easily analyze the Company’s results in a manner similar to how management analyzes the Company’s underlying business performance.

• Net operating income (loss) available (attributable) to Validus common shareholders, a non-GAAP financial measure, is calculated by the addition or subtraction of certain Consolidated Statement of (Loss) Income line items from net (loss) income (attributable) available to Validus common shareholders, the most directly comparable GAAP financial measure, and measures the performance of the Company’s operations without the influence of gains or losses on investments and foreign currencies and other items as noted in the reconciliation on page 22. The Company excludes these items from its calculation of net operating (loss) income (attributable) available to Validus common shareholders because the amount of these gains and losses is heavily influenced by, and fluctuates in part, according to availability of investment market opportunities and other factors. The Company believes these amounts are largely independent of its core underwriting activities and including them distorts the analysis of trends in its operations. The Company believes the reporting of net operating (loss) income (attributable) available to Validus common shareholders enhances the understanding of results by highlighting the underlying profitability of the Company’s core (re)insurance operations. This profitability is influenced significantly by earned premium growth, adequacy of the Company’s pricing, as well as loss frequency and severity. Over time it is also influenced by the Company’s underwriting discipline, which seeks to manage exposure to loss through favorable risk selection and diversification, its management of claims, its use of reinsurance and its ability to manage its expense ratio, which it accomplishes through its management of acquisition costs and other underwriting expenses.

• Return on average equity, a GAAP financial measure, and net operating return on average equity, a non-GAAP financial measure, represents the returns generated on common shareholders’ equity during the year and are presented on page 22.

• The Company also considers underwriting (loss) income to be a measure of profitability that takes into account net premiums earned and other insurance related income as revenue and losses and loss expenses, acquisition costs and underwriting related general and administrative and share compensation expenses as expenses. Underwriting (loss) income is the difference between revenues and expense items. A reconciliation of underwriting (loss) income to net (loss) income (attributable) available to Validus common shareholders, the most comparable U.S. GAAP financial measure, is presented on page 9.

3

Validus Holdings, Ltd.

Consolidated Financial Highlights

		Three Months Ended															Years Ended
		December 31, 2017			September 30, 2017			June 30, 2017			March 31, 2017			December 31, 2016			December 31, 2017			December 31, 2016
Highlights	Net (loss) income (attributable) available to Validus common shareholders	$	(8,693	)	$	(250,446	)	$	101,095		$	94,561		$	7,767		$	(63,483	)	$	359,384
	Net operating income (loss) available (attributable) to Validus common shareholders (a)	4,153			(254,459		)	88,466			76,834			58,460			(85,006		)	320,885
	Gross premiums written	443,323			523,856			792,902			1,190,857			339,454			2,950,938			2,648,705
	Net premiums earned	651,477			723,208			631,027			575,376			540,399			2,581,088			2,249,165
	Total assets	14,426,879			14,601,240			13,951,146			12,137,121			11,349,755			14,426,879			11,349,755
	Total shareholders' equity available to Validus common shareholders	3,495,072			3,536,287			3,811,431			3,761,876			3,688,291			3,495,072			3,688,291
	Total shareholders' equity available to Validus	3,895,072			3,936,287			4,211,431			3,911,876			3,838,291			3,895,072			3,838,291
Per share	(Loss) earnings per basic common share
	Net (loss) income (attributable) available to Validus common shareholders	$	(0.11	)	$	(3.17	)	$	1.28		$	1.19		$	0.10		$	(0.80	)	$	4.43
	Net operating income (loss) available (attributable) to Validus common shareholders (a)	0.05			(3.22		)	1.12			0.97			0.74			(1.07		)	3.96
	(Loss) earnings per diluted common share
	Net (loss) income (attributable) available to Validus common shareholders	$	(0.11	)	$	(3.17	)	$	1.25		$	1.17		$	0.10		$	(0.80	)	$	4.36
	Net operating income (loss) available (attributable) to Validus common shareholders (a)	0.05			(3.22		)	1.09			0.95			0.73			(1.07		)	3.90
	Book value per common share	$	44.06		$	44.51		$	47.93		$	47.54		$	46.61		$	44.06		$	46.61
	Book value per diluted common share (a)	$	42.71		$	43.13		$	46.45		$	45.88		$	44.97		$	42.71		$	44.97
	Change in book value per diluted common share inclusive of dividends (a)	(0.1		)%	(6.3		)%	2.1		%	2.9		%	0.4		%	(1.6		)%	9.5		%
	Book value per diluted common share plus accumulated dividends (a)	$	55.79		$	55.83		$	58.77		$	57.82		$	56.53		$	55.79		$	56.53
Ratios	Losses and loss expense ratio	73.7		%	173.5		%	46.9		%	46.9		%	50.9		%	89.1		%	47.4		%
	Policy acquisition cost ratio	19.5		%	16.0		%	18.6		%	19.4		%	22.4		%	18.3		%	20.0		%
	General and administration expense ratio	16.5		%	11.0		%	17.0		%	16.9		%	16.3		%	15.2		%	16.8		%
	Expense ratio	36.0		%	27.0		%	35.6		%	36.3		%	38.7		%	33.5		%	36.8		%
	Combined ratio	109.7		%	200.5		%	82.5		%	83.2		%	89.6		%	122.6		%	84.2		%
	Annualized return on average equity	(1.0		)%	(27.3		)%	10.7		%	10.2		%	0.8		%	(1.7		)%	9.7		%
	Annualized net operating return on average equity (a)	0.5		%	(27.7		)%	9.3		%	8.3		%	6.3		%	(2.3		)%	8.7		%

Notes:

(a) Non-GAAP financial measure. Refer to the Explanatory Notes on page 3 for further information.

4

Validus Holdings, Ltd.

Summary Consolidated Balance Sheets

	December 31, 2017			September 30, 2017			June 30, 2017			March 31, 2017			December 31, 2016			September 30, 2016			June 30, 2016			March 31, 2016			December 31, 2015
Assets
Fixed maturity investments trading, at fair value	$	5,858,348		$	5,419,966		$	5,418,643		$	5,365,216		$	5,543,030		$	5,576,341		$	5,551,586		$	5,481,304		$	5,510,331
Short-term investments trading, at fair value	3,381,757			2,993,246			2,871,353			2,785,226			2,796,170			2,481,406			2,369,654			2,108,199			1,941,635
Other investments, at fair value	355,218			471,300			448,618			443,004			405,712			394,695			359,526			344,151			336,856
Investments in investment affiliates, equity method	100,137			92,079			103,377			94,697			100,431			99,731			99,278			84,135			87,673
Cash and cash equivalents	754,990			965,630			800,405			623,937			419,976			443,992			568,798			569,774			723,109
Restricted cash	394,663			89,403			195,039			92,547			70,956			113,048			96,022			108,395			73,270
Total investments and cash	10,845,113			10,031,624			9,837,435			9,404,627			9,336,275			9,109,213			9,044,864			8,695,958			8,672,874
Investments in operating affiliate, equity method	—			—			—			—			—			—			—			369			392
Premiums receivable	939,487			1,569,374			1,940,637			1,214,745			725,390			939,127			1,372,000			1,176,684			658,682
Deferred acquisition costs	213,816			258,078			302,857			292,180			209,227			249,922			283,213			262,675			181,002
Prepaid reinsurance premiums	132,938			207,618			335,837			199,046			77,996			119,805			145,567			181,255			77,992
Securities lending collateral	2,717			2,115			2,514			10,386			9,779			10,629			10,224			9,721			4,863
Loss reserves recoverable	1,233,997			1,335,016			600,207			451,856			430,421			444,609			442,987			370,689			350,586
Paid losses recoverable	46,873			77,730			35,675			37,837			35,247			36,069			27,648			25,001			23,071
Income taxes recoverable	9,044			9,704			4,763			6,757			4,870			6,879			8,526			7,146			16,228
Deferred tax asset	52,467			52,228			52,655			45,995			43,529			26,015			23,745			27,771			21,661
Receivable for investments sold	12,182			37,493			20,519			9,302			3,901			21,854			13,736			16,278			39,766
Intangible assets	171,411			173,398			175,518			114,176			115,592			117,010			118,426			119,842			121,258
Goodwill	229,573			227,701			227,701			196,758			196,758			196,758			196,758			196,758			196,758
Accrued investment income	29,096			27,976			26,968			25,962			26,488			24,906			24,925			22,298			23,897
Other assets	508,165			591,185			387,860			127,494			134,282			183,357			105,625			92,076			126,782
Total assets	$	14,426,879		$	14,601,240		$	13,951,146		$	12,137,121		$	11,349,755		$	11,486,153		$	11,818,244		$	11,204,521		$	10,515,812
Liabilities
Reserve for losses and loss expenses	$	4,831,390		$	4,935,637		$	3,305,191		$	3,052,745		$	2,995,195		$	3,035,987		$	3,122,717		$	2,980,300		$	2,996,567
Unearned premiums	1,147,186			1,526,465			1,970,896			1,612,474			1,076,049			1,359,438			1,621,563			1,503,161			966,210
Reinsurance balances payable	331,645			527,881			461,261			118,119			54,781			76,429			92,488			96,685			75,380
Securities lending payable	2,717			2,581			2,980			10,852			10,245			11,095			10,690			10,187			5,329
Deferred tax liability	4,600			4,198			4,012			3,818			3,331			3,278			3,552			3,618			3,847
Payable for investments purchased	74,496			84,431			92,077			38,486			29,447			49,435			52,718			76,116			77,475
Accounts payable and accrued expenses	1,225,875			478,892			385,958			171,134			587,648			144,086			149,593			136,712			627,331
Notes payable to AlphaCat investors	1,108,364			1,107,618			1,066,159			446,576			278,202			372,730			370,982			323,510			75,493
Senior notes payable	245,564			245,513			245,463			245,412			245,362			245,311			245,261			245,211			245,161
Debentures payable	539,158			538,910			538,400			537,402			537,226			538,168			537,987			538,335			537,668
Total liabilities	9,510,995			9,452,126			8,072,397			6,237,018			5,817,486			5,835,957			6,207,551			5,913,835			5,610,461
Redeemable noncontrolling interests	1,004,094			1,133,880			1,251,660			1,657,630			1,528,001			1,559,580			1,532,283			1,409,037			1,111,714
Shareholders' equity
Preferred shares	$	400,000		$	400,000		$	400,000		$	150,000		$	150,000		$	150,000		$	150,000		$	—		$	—
Common shares	28,349			28,342			28,339			28,225			28,224			28,223			28,219			28,102			28,100
Treasury shares	(14,468		)	(14,437		)	(14,423		)	(14,376		)	(14,376		)	(14,320		)	(14,084		)	(13,830		)	(13,592		)
Additional paid-in capital	814,641			812,266			807,321			830,346			821,023			827,256			883,701			954,485			1,002,980
Accumulated other comprehensive loss	(22,192		)	(18,430		)	(19,924		)	(22,453		)	(23,216		)	(21,092		)	(18,182		)	(15,438		)	(12,569		)
Retained earnings	2,688,742			2,728,546			3,010,118			2,940,134			2,876,636			2,897,553			2,836,602			2,771,107			2,634,056
Total shareholders' equity available to Validus	3,895,072			3,936,287			4,211,431			3,911,876			3,838,291			3,867,620			3,866,256			3,724,426			3,638,975
Noncontrolling interests	16,718			78,947			415,658			330,597			165,977			222,996			212,154			157,223			154,662
Total shareholders' equity	3,911,790			4,015,234			4,627,089			4,242,473			4,004,268			4,090,616			4,078,410			3,881,649			3,793,637
Total liabilities, noncontrolling interests and shareholders' equity	$	14,426,879		$	14,601,240		$	13,951,146		$	12,137,121		$	11,349,755		$	11,486,153		$	11,818,244		$	11,204,521		$	10,515,812
Book value per common share	$	44.06		$	44.51		$	47.93		$	47.54		$	46.61		$	46.80		$	46.01		$	45.67		$	43.90
Book value per diluted common share (a)	$	42.71		$	43.13		$	46.45		$	45.88		$	44.97		$	45.16		$	44.41		$	44.00		$	42.33
Book value per diluted common share plus accumulated dividends (a)	$	55.79		$	55.83		$	58.77		$	57.82		$	56.53		$	56.37		$	55.27		$	54.51		$	52.49

Notes:

(a) Non-GAAP financial measure. Refer to the Explanatory Notes on page 3 for further information.

5

Validus Holdings, Ltd.

Computation of Book Value per Common Share, Book Value per Diluted Common Share and Tangible Book Value per Diluted Common Share

	December 31, 2017						December 31, 2016
	Equity Amount			Common Shares	Per Share Amount (a)		Equity Amount			Common Shares	Per Share Amount (a)
Book value per common share (b)	$	3,495,072		79,319,550	$	44.06	$	3,688,291		79,132,252	$	46.61
Non-GAAP Adjustments:
Assumed exercise of outstanding stock options (c)(d)	—			—			614			26,136
Unvested restricted shares	—			2,503,859			—			2,868,610
Book value per diluted common share (e)	3,495,072			81,823,409	$	42.71	3,688,905			82,026,998	$	44.97
Goodwill	(229,573		)	—			(196,758		)	—
Intangible assets	(171,411		)	—			(115,592		)	—
Tangible book value per diluted common share (e)	$	3,094,088		81,823,409	$	37.81	$	3,376,555		82,026,998	$	41.16
Book value per diluted common share (e)					$	42.71					$	44.97
Accumulated dividends					13.08						11.56
Book value per diluted common share plus accumulated dividends (e)					$	55.79					$	56.53

Notes:

(a) Per share amounts are calculated by dividing the equity amount by the common shares.

(b) The equity amount used in the calculation of book value per common share represents total shareholders' equity available to Validus excluding the liquidation value of the preferred shares.

(c) Using the "as-if-converted" method, assuming all proceeds received upon exercise of stock options will be retained by the Company and the resulting common shares from exercise remain outstanding.

(d) At December 31, 2017, the weighted average exercise price for those stock options that had an exercise price lower than book value per share was $nil (December 31, 2016: $23.48).

(e) Non-GAAP financial measure. Refer to the Explanatory Notes on page 3 for further information.

6

Validus Holdings, Ltd.

Consolidated Statements of Cash Flows

	Three Months Ended															Years Ended
	December 31, 2017			September 30, 2017			June 30, 2017			March 31, 2017			December 31, 2016			December 31, 2017			December 31, 2016
Cash flows provided by (used in) operating activities
Net (loss) income	$	(70,001	)	$	(621,185	)	$	146,948		$	139,336		$	37,170		$	(404,902	)	$	487,202
Adjustments to reconcile net (loss) income to cash provided by (used in) operating activities:
Share compensation expenses	10,031			9,443			11,146			9,491			10,442			40,111			42,907
Loss on deconsolidation of AlphaCat ILS fund	—			—			402			—			—			402			—
Amortization of discount on senior notes	27			27			27			27			27			108			108
(Income) loss from investment and operating affiliates	(6,345		)	(1,011		)	(9,466		)	(5,188		)	(2,166		)	(22,010		)	2,106
Net realized and change in net unrealized losses (gains) on investments	15,650			4,291			(18,595		)	(12,184		)	58,240			(10,838		)	(32,628		)
Amortization of intangible assets	2,146			2,120			2,579			1,416			1,418			8,261			5,666
Foreign exchange (gains) losses included in net income	(540		)	(4,493		)	(4,748		)	(4,938		)	7,628			(14,719		)	3,043
Amortization of premium on fixed maturities	4,732			4,166			3,476			3,536			4,580			15,910			17,961
Change in operational balance sheet items, net	336,152			857,839			(96,883		)	(113,697		)	38,268			983,411			(116,162		)
Net cash provided by operating activities	$	291,852		$	251,197		$	34,886		$	17,799		$	155,607		$	595,734		$	410,203
Cash flows provided by (used in) investing activities
(Purchases) sales of investments	$	(717,157	)	$	(174,373	)	$	(92,623	)	$	167,286		$	(366,894	)	$	(816,867	)	$	(974,719	)
(Increase) decrease in securities lending collateral	(602		)	399			7,872			(607		)	850			7,062			(4,916		)
(Contributions) distributions in investment & operating affiliates, net	(1,713		)	12,309			786			10,922			1,466			22,304			(14,472		)
Purchase of subsidiary, net of cash acquired	—			—			(183,923		)	—			—			(183,923		)	—
Net cash (used in) provided by investing activities	$	(719,472	)	$	(161,665	)	$	(267,888	)	$	177,601		$	(364,578	)	$	(971,424	)	$	(994,107	)
Cash flows provided by (used in) financing activities
Issuance of notes payable to AlphaCat investors, net	$	506		$	40,903		$	196,597		$	73,048		$	(202	)	$	311,054		$	296,325
Issuance of preferred shares, net	—			—			241,686			—			—			241,686			144,852
Issuance of common shares, net	545			(162		)	(11,794		)	(167		)	(70		)	(11,578		)	(7,701		)
Purchases of common shares under share repurchase program	(8,225		)	(4,347		)	(13,996		)	—			(16,660		)	(26,568		)	(212,675		)
Dividends paid on common and preferred shares	(36,072		)	(35,956		)	(35,397		)	(32,295		)	(29,927		)	(139,720		)	(120,080		)
Increase (decrease) in securities lending payable	136			(399		)	(7,872		)	607			(850		)	(7,528		)	4,916
Third party investment (redemption) in redeemable noncontrolling interest, net	58,665			(51,201		)	95,463			35,403			11,499			138,330			376,165
Third party (redemption) investment in noncontrolling interest, net	(3,440		)	(101,125		)	69,965			92,210			—			57,610			44,571
Third party subscriptions received (deployed) in AlphaCat Funds and Sidecars, net	516,333			114,500			(27,500		)	(144,452		)	187,452			458,881			(225,284		)
Net cash provided by (used in) financing activities	$	528,448		$	(37,787	)	$	507,152		$	24,354		$	151,242		$	1,022,167		$	301,089
Effect of foreign currency rate changes on cash and cash equivalents and restricted cash	(6,208		)	7,844			4,810			5,798			(8,379		)	12,244			(22,632		)
Net increase (decrease) in cash and cash equivalents and restricted cash	94,620			59,589			278,960			225,552			(66,108		)	658,721			(305,447		)
Cash and cash equivalents and restricted cash - beginning of period	1,055,033			995,444			716,484			490,932			557,040			490,932			796,379
Cash and cash equivalents and restricted cash - end of period	$	1,149,653		$	1,055,033		$	995,444		$	716,484		$	490,932		$	1,149,653		$	490,932
Supplemental information:
Taxes paid during the period	$	1,511		$	2,242		$	552		$	16		$	120		$	4,321		$	6,034
Interest paid during the period	$	8,045		$	19,202		$	8,113		$	19,073		$	8,566		$	54,433		$	54,638
Losses paid during the period	$	485,913		$	372,706		$	236,023		$	245,787		$	277,422		$	1,340,429		$	1,114,402

7

Validus Holdings, Ltd.

Consolidated Statements of (Loss) Income and Comprehensive (Loss) Income

	Three Months Ended															Years Ended
	December 31, 2017			September 30, 2017			June 30, 2017			March 31, 2017			December 31, 2016			December 31, 2017			December 31, 2016
Revenues
Gross premiums written	$	443,323		$	523,856		$	792,902		$	1,190,857		$	339,454		$	2,950,938		$	2,648,705
Reinsurance premiums ceded	(96,445		)	(116,860		)	(56,222		)	(200,106		)	(40,635		)	(469,633		)	(289,705		)
Net premiums written	346,878			406,996			736,680			990,751			298,819			2,481,305			2,359,000
Change in unearned premiums	304,599			316,212			(105,653		)	(415,375		)	241,580			99,783			(109,835		)
Net premiums earned	651,477			723,208			631,027			575,376			540,399			2,581,088			2,249,165
Net investment income	48,960			44,458			44,241			40,214			38,153			177,873			150,385
Net realized gains (losses) on investments	5,607			906			2,274			(1,164		)	9,220			7,623			15,757
Change in net unrealized (losses) gains on investments	(21,257		)	(5,197		)	16,321			13,348			(67,460		)	3,215			16,871
Income (loss) from investment affiliates	6,345			1,011			9,466			5,188			2,166			22,010			(2,083		)
Other insurance related income and other income (loss)	6,939			3,571			1,339			1,330			568			13,179			2,195
Foreign exchange (losses) gains	(283		)	(1,404		)	(7,329		)	1,569			(901		)	(7,447		)	10,864
Total revenues	697,788			766,553			697,339			635,861			522,145			2,797,541			2,443,154
Expenses
Losses and loss expenses	479,842			1,254,602			296,149			269,585			275,126			2,300,178			1,065,097
Policy acquisition costs	127,067			115,590			117,268			111,628			120,889			471,553			449,482
General and administrative expenses	97,522			70,342			96,349			87,924			77,955			352,137			336,294
Share compensation expenses	10,031			9,443			11,146			9,491			10,442			40,111			42,907
Finance expenses	15,871			14,523			14,209			13,943			14,630			58,546			58,520
Transaction expenses	—			—			4,427			—			—			4,427			—
Total expenses	730,333			1,464,500			539,548			492,571			499,042			3,226,952			1,952,300
(Loss) income before taxes, (loss) from operating affiliate and (income) loss attributable to AlphaCat investors	(32,545		)	(697,947		)	157,791			143,290			23,103			(429,411		)	490,854
Tax benefit	412			2,632			987			3,549			21,147			7,580			19,729
Loss from operating affiliate	—			—			—			—			—			—			(23		)
(Income) loss attributable to AlphaCat investors	(37,868		)	74,130			(11,830		)	(7,503		)	(7,080		)	16,929			(23,358		)
Net (loss) income	(70,001		)	(621,185		)	146,948			139,336			37,170			(404,902		)	487,202
Net loss (income) attributable to noncontrolling interests	67,136			376,366			(43,650		)	(42,572		)	(27,200		)	357,280			(123,363		)
Net (loss) income (attributable) available to Validus	(2,865		)	(244,819		)	103,298			96,764			9,970			(47,622		)	363,839
Dividends on preferred shares	(5,828		)	(5,627		)	(2,203		)	(2,203		)	(2,203		)	(15,861		)	(4,455		)
Net (loss) income (attributable) available to Validus common shareholders	$	(8,693	)	$	(250,446	)	$	101,095		$	94,561		$	7,767		$	(63,483	)	$	359,384
Comprehensive (loss) income
Net (loss) income	$	(70,001	)	$	(621,185	)	$	146,948		$	139,336		$	37,170		$	(404,902	)	$	487,202
Other comprehensive (loss) income, net of tax:
Change in foreign currency translation adjustments	490			1,481			1,489			597			(3,755		)	4,057			(10,440		)
Change in minimum pension liability	1,617			—			1,184			68			221			2,869			(484		)
Change in fair value of cash flow hedges	(6,319		)	13			(144		)	98			1,410			(6,352		)	277
Other comprehensive (loss) income, net of tax	$	(4,212	)	$	1,494		$	2,529		$	763		$	(2,124	)	$	574		$	(10,647	)
Comprehensive loss (income) attributable to noncontrolling interests	67,136			376,366			(43,650		)	(42,572		)	(27,200		)	357,280			(123,363		)
Comprehensive (loss) income (attributable) available to Validus	$	(7,077	)	$	(243,325	)	$	105,827		$	97,527		$	7,846		$	(47,048	)	$	353,192
(Loss) earnings per share
Weighted average number of common shares and common share equivalents outstanding
Basic	78,966,938			78,994,335			79,270,561			79,133,671			79,261,409			79,091,376			81,041,974
Diluted	78,966,938			78,994,335			80,872,451			80,739,142			80,621,967			79,091,376			82,359,460
Basic (loss) earnings per share (attributable) available to Validus common shareholders	$	(0.11	)	$	(3.17	)	$	1.28		$	1.19		$	0.10		$	(0.80	)	$	4.43
(Loss) earnings per diluted share (attributable) available to Validus common shareholders	$	(0.11	)	$	(3.17	)	$	1.25		$	1.17		$	0.10		$	(0.80	)	$	4.36
Cash dividends declared per common share	$	0.38		$	0.38		$	0.38		$	0.38		$	0.35		$	1.52		$	1.40

8

Validus Holdings, Ltd.

Consolidated Statements of Operations - Underwriting Income Format

	Three Months Ended															Years Ended
	December 31, 2017			September 30, 2017			June 30, 2017			March 31, 2017			December 31, 2016			December 31, 2017			December 31, 2016
Underwriting revenues
Gross premiums written	$	443,323		$	523,856		$	792,902		$	1,190,857		$	339,454		$	2,950,938		$	2,648,705
Reinsurance premiums ceded	(96,445		)	(116,860		)	(56,222		)	(200,106		)	(40,635		)	(469,633		)	(289,705		)
Net premiums written	346,878			406,996			736,680			990,751			298,819			2,481,305			2,359,000
Change in unearned premiums	304,599			316,212			(105,653		)	(415,375		)	241,580			99,783			(109,835		)
Net premiums earned	651,477			723,208			631,027			575,376			540,399			2,581,088			2,249,165
Other insurance related income	6,939			3,536			1,165			1,236			561			12,876			2,961
Total underwriting revenues	658,416			726,744			632,192			576,612			540,960			2,593,964			2,252,126
Underwriting deductions
Losses and loss expenses	479,842			1,254,602			296,149			269,585			275,126			2,300,178			1,065,097
Policy acquisition costs	127,067			115,590			117,268			111,628			120,889			471,553			449,482
General and administrative expenses	97,522			70,342			96,349			87,924			77,955			352,137			336,294
Share compensation expenses	10,031			9,443			11,146			9,491			10,442			40,111			42,907
Total underwriting deductions	714,462			1,449,977			520,912			478,628			484,412			3,163,979			1,893,780
Underwriting (loss) income (a)	$	(56,046	)	$	(723,233	)	$	111,280		$	97,984		$	56,548		$	(570,015	)	$	358,346
Net investment income	48,960			44,458			44,241			40,214			38,153			177,873			150,385
Finance expenses	(15,871		)	(14,523		)	(14,209		)	(13,943		)	(14,630		)	(58,546		)	(58,520		)
Dividends on preferred shares	(5,828		)	(5,627		)	(2,203		)	(2,203		)	(2,203		)	(15,861		)	(4,455		)
Tax (expense) benefit	(927		)	2,164			2,735			4,129			15,284			8,101			21,416
(Loss) from operating affiliate	—			—			—			—			—			—			(23		)
(Income) loss attributable to AlphaCat investors	(37,868		)	74,130			(11,830		)	(7,503		)	(7,080		)	16,929			(23,358		)
Net operating loss (income) attributable to noncontrolling interests	71,733			368,172			(41,548		)	(41,844		)	(27,612		)	356,513			(122,906		)
Net operating income (loss) available (attributable) to Validus common shareholders (a)	$	4,153		$	(254,459	)	$	88,466		$	76,834		$	58,460		$	(85,006	)	$	320,885
Net realized gains (losses) on investments	5,607			906			2,274			(1,164		)	9,220			7,623			15,757
Change in net unrealized (losses) gains on investments	(21,257		)	(5,197		)	16,321			13,348			(67,460		)	3,215			16,871
Income (loss) from investment affiliates	6,345			1,011			9,466			5,188			2,166			22,010			(2,083		)
Foreign exchange (losses) gains	(283		)	(1,404		)	(7,329		)	1,569			(901		)	(7,447		)	10,864
Other income (loss)	—			35			174			94			7			303			(766		)
Transaction expenses	—			—			(4,427		)	—			—			(4,427		)	—
Net (income) loss attributable to noncontrolling interests	(4,597		)	8,194			(2,102		)	(728		)	412			767			(457		)
Tax benefit (expense)	1,339			468			(1,748		)	(580		)	5,863			(521		)	(1,687		)
Net (loss) income (attributable) available to Validus common shareholders	$	(8,693	)	$	(250,446	)	$	101,095		$	94,561		$	7,767		$	(63,483	)	$	359,384
Selected ratios:
Ratio of net to gross premiums written	78.2		%	77.7		%	92.9		%	83.2		%	88.0		%	84.1		%	89.1		%
Losses and loss expense ratio	73.7		%	173.5		%	46.9		%	46.9		%	50.9		%	89.1		%	47.4		%
Policy acquisition cost ratio	19.5		%	16.0		%	18.6		%	19.4		%	22.4		%	18.3		%	20.0		%
General and administrative expense ratio	16.5		%	11.0		%	17.0		%	16.9		%	16.3		%	15.2		%	16.8		%
Expense ratio	36.0		%	27.0		%	35.6		%	36.3		%	38.7		%	33.5		%	36.8		%
Combined ratio	109.7		%	200.5		%	82.5		%	83.2		%	89.6		%	122.6		%	84.2		%

Notes:

(a) Non-GAAP financial measure. Refer to the Explanatory Notes on page 3 for further information.

9

Validus Holdings, Ltd.

Computation of (Loss) Earnings per Share

	Three Months Ended (a)
	December 31, 2017									December 31, 2016
	Net (Loss)			Net Operating Income			Comprehensive (Loss)			Net Income		Net Operating Income		Comprehensive Income
Basic (loss) earnings per share (b)
(Loss) Income (attributable) available to Validus common shareholders	$	(8,693	)	$	4,153		$	(12,905	)	$	7,767	$	58,460	$	5,643
Weighted average number of common shares outstanding	78,966,938			78,966,938			78,966,938			79,261,409		79,261,409		79,261,409
Basic (loss) earnings per share (attributable) available to Validus common shareholders	$	(0.11	)	$	0.05		$	(0.16	)	$	0.10	$	0.74	$	0.07
(Loss) earnings per diluted share (c)
(Loss) Income (attributable) available to Validus common shareholders	$	(8,693	)	$	4,153		$	(12,905	)	$	7,767	$	58,460	$	5,643
Weighted average number of common shares outstanding	78,966,938			78,966,938			78,966,938			79,261,409		79,261,409		79,261,409
Share equivalents:
Stock options	—			5,466			—			16,403		16,403		16,403
Unvested restricted shares	—			1,199,013			—			1,344,155		1,344,155		1,344,155
Weighted average number of diluted common shares outstanding	78,966,938			80,171,417			78,966,938			80,621,967		80,621,967		80,621,967
(Loss) earnings per diluted share (attributable) available to Validus common shareholders	$	(0.11	)	$	0.05		$	(0.16	)	$	0.10	$	0.73	$	0.07
	Years Ended (a)
	December 31, 2017									December 31, 2016
	Net (Loss)			Net Operating (Loss)			Comprehensive (Loss)			Net Income		Net Operating income		Comprehensive income
Basic (loss) earnings per share (b)
(Loss) income (attributable) available to Validus common shareholders	$	(63,483	)	$	(85,006	)	$	(62,909	)	$	359,384	$	320,885	$	348,737
Weighted average number of common shares outstanding	79,091,376			79,091,376			79,091,376			81,041,974		81,041,974		81,041,974
Basic (loss) earnings per share (attributable) available to Validus common shareholders	$	(0.80	)	$	(1.07	)	$	(0.80	)	$	4.43	$	3.96	$	4.30
(Loss) earnings per diluted share (c)
(Loss) income (attributable) available to Validus common shareholders	$	(63,483	)	$	(85,006	)	$	(62,909	)	$	359,384	$	320,885	$	348,737
Weighted average number of common shares outstanding	79,091,376			79,091,376			79,091,376			81,041,974		81,041,974		81,041,974
Share equivalents:
Stock options	—			—			—			28,196		28,196		28,196
Unvested restricted shares	—			—			—			1,289,290		1,289,290		1,289,290
Weighted average number of diluted common shares outstanding	79,091,376			79,091,376			79,091,376			82,359,460		82,359,460		82,359,460
(Loss) earnings per diluted share (attributable) available to Validus common shareholders	$	(0.80	)	$	(1.07	)	$	(0.80	)	$	4.36	$	3.90	$	4.23

Notes:

(a) ASC 718 requires that any unrecognized stock based compensation expense that will be recorded in future periods be included as proceeds for purposes of treasury stock repurchases, which is applied against the unvested restricted shares balance.

(b) (Loss) earnings per basic common share is based on weighted average common shares and excludes any dilutive effects of options and restricted stock.

(c) (Loss) earnings per diluted common share assumes the exercise of all dilutive stock options and restricted stock grants. Due to the net (loss) incurred during the three months and year ended December 31, 2017, share equivalents were not included in the computation of (loss) per diluted common share due to their anti-dilutive effect.

10

Validus Holdings, Ltd.

Underwriting Income Statement - Reinsurance Segment

	Three Months Ended															Years Ended
	December 31, 2017			September 30, 2017			June 30, 2017			March 31, 2017			December 31, 2016			December 31, 2017			December 31, 2016
Underwriting revenues
Gross premiums written	$	51,960		$	169,572		$	330,534		$	643,141		$	41,813		$	1,195,207		$	1,184,912
Reinsurance premiums ceded	(40,716		)	(43,849		)	(10,278		)	(114,446		)	(7,773		)	(209,289		)	(121,331		)
Net premiums written	11,244			125,723			320,256			528,695			34,040			985,918			1,063,581
Change in unearned premiums	239,320			156,754			(61,948		)	(297,040		)	200,129			37,086			(67,432		)
Net premiums earned	250,564			282,477			258,308			231,655			234,169			1,023,004			996,149
Other insurance related income	15			49			1			2			9			67			25
Total underwriting revenues	250,579			282,526			258,309			231,657			234,178			1,023,071			996,174
Underwriting deductions
Losses and loss expenses	135,804			361,693			114,341			80,881			93,503			692,719			415,505
Policy acquisition costs	58,107			47,822			49,966			43,535			55,352			199,430			189,797
General and administrative expenses	23,604			14,400			22,204			19,969			21,248			80,177			85,000
Share compensation expenses	2,331			3,083			2,725			2,623			2,811			10,762			11,668
Total underwriting deductions	219,846			426,998			189,236			147,008			172,914			983,088			701,970
Underwriting income (loss)	$	30,733		$	(144,472	)	$	69,073		$	84,649		$	61,264		$	39,983		$	294,204
Supplemental information:
Losses and loss expenses:
Current period excluding items below	$	132,919		$	123,095		$	124,268		$	106,932		$	109,775		$	487,214		$	459,249
Current period—notable loss events	14,738			283,027			—			—			18,599			297,765			45,164
Current period—non-notable loss events	9,392			796			5,781			5,073			1			21,042			46,718
Change in prior accident years	(21,245		)	(45,225		)	(15,708		)	(31,124		)	(34,872		)	(113,302		)	(135,626		)
Total losses and loss expenses	$	135,804		$	361,693		$	114,341		$	80,881		$	93,503		$	692,719		$	415,505
Selected ratios:
Ratio of net to gross premiums written	21.6		%	74.1		%	96.9		%	82.2		%	81.4		%	82.5		%	89.8		%
Losses and loss expense ratio:
Current period excluding items below	53.1		%	43.5		%	48.2		%	46.1		%	46.9		%	47.6		%	46.1		%
Current period—notable loss events	5.9		%	100.2		%	—		%	—		%	7.9		%	29.1		%	4.5		%
Current period—non-notable loss events	3.7		%	0.3		%	2.2		%	2.2		%	—		%	2.1		%	4.7		%
Change in prior accident years	(8.5		)%	(16.0		)%	(6.1		)%	(13.4		)%	(14.9		)%	(11.1		)%	(13.6		)%
Losses and loss expense ratio	54.2		%	128.0		%	44.3		%	34.9		%	39.9		%	67.7		%	41.7		%
Policy acquisition cost ratio	23.2		%	16.9		%	19.3		%	18.8		%	23.6		%	19.5		%	19.1		%
General and administrative expense ratio	10.4		%	6.2		%	9.7		%	9.8		%	10.3		%	8.9		%	9.7		%
Expense ratio	33.6		%	23.1		%	29.0		%	28.6		%	33.9		%	28.4		%	28.8		%
Combined ratio	87.8		%	151.1		%	73.3		%	63.5		%	73.8		%	96.1		%	70.5		%

11

Validus Holdings, Ltd.

Underwriting Results by Class of Business - Three Months Ended - Reinsurance Segment

	Three Months Ended December 31, 2017												Three Months Ended December 31, 2016
	Property			Specialty - Short-tail			Specialty - Other			Total			Property			Specialty - Short-tail			Specialty - Other			Total
Underwriting revenues
Gross premiums written	$	18,126		$	12,997		$	20,837		$	51,960		$	8,479		$	(8,763	)	$	42,097		$	41,813
Reinsurance premiums ceded	(32,778		)	(8,059		)	121			(40,716		)	706			(8,447		)	(32		)	(7,773		)
Net premiums written	(14,652		)	4,938			20,958			11,244			9,185			(17,210		)	42,065			34,040
Change in unearned premiums	113,643			111,487			14,190			239,320			92,397			130,100			(22,368		)	200,129
Net premiums earned	98,991			116,425			35,148			250,564			101,582			112,890			19,697			234,169
Other insurance related income										15												9
Total underwriting revenues										250,579												234,178
Underwriting deductions
Losses and loss expenses	60,644			54,494			20,666			135,804			38,381			46,098			9,024			93,503
Policy acquisition costs	17,976			27,508			12,623			58,107			17,611			30,840			6,901			55,352
Total underwriting deductions before G&A	78,620			82,002			33,289			193,911			55,992			76,938			15,925			148,855
Underwriting income before G&A	$	20,371		$	34,423		$	1,859		$	56,668		$	45,590		$	35,952		$	3,772		$	85,323
General and administrative expenses										23,604												21,248
Share compensation expenses										2,331												2,811
Total underwriting deductions										219,846												172,914
Underwriting income										$	30,733											$	61,264
Supplemental information:
Losses and loss expenses:
Current period excluding items below	$	38,881		$	70,334		$	23,704		$	132,919		$	26,918		$	72,065		$	10,792		$	109,775
Current period—notable loss events	14,900			(162		)	—			14,738			16,679			1,920			—			18,599
Current period—non-notable loss events	8,818			574			—			9,392			(1		)	2			—			1
Change in prior accident years	(1,955		)	(16,252		)	(3,038		)	(21,245		)	(5,215		)	(27,889		)	(1,768		)	(34,872		)
Total losses and loss expenses	$	60,644		$	54,494		$	20,666		$	135,804		$	38,381		$	46,098		$	9,024		$	93,503
Selected ratios:
Ratio of net to gross premiums written	(80.8		)%	38.0		%	100.6		%	21.6		%	108.3		%	196.4		%	99.9		%	81.4		%
Losses and loss expense ratio:
Current period excluding items below	39.2		%	60.4		%	67.4		%	53.1		%	26.5		%	63.8		%	54.8		%	46.9		%
Current period—notable loss events	15.1		%	(0.1		)%	—		%	5.9		%	16.4		%	1.7		%	—		%	7.9		%
Current period—non-notable loss events	8.9		%	0.5		%	—		%	3.7		%	—		%	—		%	—		%	—		%
Change in prior accident years	(2.0		)%	(14.0		)%	(8.6		)%	(8.5		)%	(5.1		)%	(24.7		)%	(9.0		)%	(14.9		)%
Losses and loss expense ratio	61.2		%	46.8		%	58.8		%	54.2		%	37.8		%	40.8		%	45.8		%	39.9		%
Policy acquisition cost ratio	18.2		%	23.6		%	35.9		%	23.2		%	17.3		%	27.3		%	35.0		%	23.6		%
General and administrative expense ratio										10.4		%										10.3		%
Expense ratio										33.6		%										33.9		%
Combined ratio										87.8		%										73.8		%

12

Validus Holdings, Ltd.

Underwriting Results by Class of Business - Years Ended - Reinsurance Segment

	Year Ended December 31, 2017												Year Ended December 31, 2016
	Property			Specialty - Short-tail			Specialty - Other			Total			Property			Specialty - Short-tail			Specialty - Other			Total
Underwriting revenues
Gross premiums written	$	548,977		$	505,111		$	141,119		$	1,195,207		$	497,263		$	555,504		$	132,145		$	1,184,912
Reinsurance premiums ceded	(147,547		)	(45,071		)	(16,671		)	(209,289		)	(88,342		)	(32,623		)	(366		)	(121,331		)
Net premiums written	401,430			460,040			124,448			985,918			408,921			522,881			131,779			1,063,581
Change in unearned premiums	45,946			(7,020		)	(1,840		)	37,086			10,214			(265		)	(77,381		)	(67,432		)
Net premiums earned	447,376			453,020			122,608			1,023,004			419,135			522,616			54,398			996,149
Other insurance related income										67												25
Total underwriting revenues										1,023,071												996,174
Underwriting deductions
Losses and loss expenses	364,112			256,941			71,666			692,719			102,334			281,216			31,955			415,505
Policy acquisition costs	73,777			86,714			38,939			199,430			75,417			94,685			19,695			189,797
Total underwriting deductions before G&A	437,889			343,655			110,605			892,149			177,751			375,901			51,650			605,302
Underwriting income before G&A	$	9,487		$	109,365		$	12,003		$	130,922		$	241,384		$	146,715		$	2,748		$	390,872
General and administrative expenses										80,177												85,000
Share compensation expenses										10,762												11,668
Total underwriting deductions										983,088												701,970
Underwriting income										$	39,983											$	294,204
Supplemental information:
Losses and loss expenses:
Current period excluding items below	$	125,560		$	287,369		$	74,285		$	487,214		$	97,783		$	325,426		$	36,040		$	459,249
Current period—notable loss events	258,798			38,967			—			297,765			43,244			1,920			—			45,164
Current period—non-notable loss events	13,817			7,225			—			21,042			22,409			24,309			—			46,718
Change in prior accident years	(34,063		)	(76,620		)	(2,619		)	(113,302		)	(61,102		)	(70,439		)	(4,085		)	(135,626		)
Total losses and loss expenses	$	364,112		$	256,941		$	71,666		$	692,719		$	102,334		$	281,216		$	31,955		$	415,505
Selected ratios:
Ratio of net to gross premiums written	73.1		%	91.1		%	88.2		%	82.5		%	82.2		%	94.1		%	99.7		%	89.8		%
Losses and loss expense ratio:
Current period excluding items below	28.1		%	63.4		%	60.6		%	47.6		%	23.4		%	62.2		%	66.2		%	46.1		%
Current period—notable loss events	57.8		%	8.6		%	—		%	29.1		%	10.3		%	0.4		%	—		%	4.5		%
Current period—non-notable loss events	3.1		%	1.6		%	—		%	2.1		%	5.3		%	4.7		%	—		%	4.7		%
Change in prior accident years	(7.6		)%	(16.9		)%	(2.1		)%	(11.1		)%	(14.6		)%	(13.5		)%	(7.5		)%	(13.6		)%
Losses and loss expense ratio	81.4		%	56.7		%	58.5		%	67.7		%	24.4		%	53.8		%	58.7		%	41.7		%
Policy acquisition cost ratio	16.5		%	19.1		%	31.8		%	19.5		%	18.0		%	18.1		%	36.2		%	19.1		%
General and administrative expense ratio										8.9		%										9.7		%
Expense ratio										28.4		%										28.8		%
Combined ratio										96.1		%										70.5		%

13

Validus Holdings, Ltd.

Underwriting Income Statement - Insurance Segment

	Three Months Ended															Years Ended
	December 31, 2017			September 30, 2017			June 30, 2017			March 31, 2017			December 31, 2016			December 31, 2017			December 31, 2016
Underwriting revenues
Gross premiums written	$	377,014		$	333,272		$	360,057		$	382,790		$	297,905		$	1,453,133		$	1,194,137
Reinsurance premiums ceded	(56,378		)	(76,362		)	(49,315		)	(79,000		)	(32,862		)	(261,055		)	(162,669		)
Net premiums written	320,636			256,910			310,742			303,790			265,043			1,192,078			1,031,468
Change in unearned premiums	12,393			82,185			(5,875		)	(24,696		)	(24,900		)	64,007			(28,524		)
Net premiums earned	333,029			339,095			304,867			279,094			240,143			1,256,085			1,002,944
Other insurance related income	3,957			1,354			728			996			284			7,035			1,367
Total underwriting revenues	336,986			340,449			305,595			280,090			240,427			1,263,120			1,004,311
Underwriting deductions
Losses and loss expenses	244,908			321,940			180,741			186,610			164,417			934,199			604,741
Policy acquisition costs	60,403			59,454			60,137			61,192			58,394			241,186			232,780
General and administrative expenses	64,945			43,369			53,596			45,276			33,069			207,186			165,529
Share compensation expenses	3,512			2,187			3,702			3,373			3,693			12,774			14,987
Total underwriting deductions	373,768			426,950			298,176			296,451			259,573			1,395,345			1,018,037
Underwriting (loss) income	$	(36,782	)	$	(86,501	)	$	7,419		$	(16,361	)	$	(19,146	)	$	(132,225	)	$	(13,726	)
Supplemental information:
Losses and loss expenses:
Current period excluding items below	$	245,952		$	255,425		$	202,684		$	198,610		$	157,284		$	902,671		$	644,512
Current period—notable loss events	20,917			82,111			—			—			17,730			103,028			20,752
Current period—non-notable loss events	(2,276		)	10,992			1,787			14,689			189			25,192			17,306
Change in prior accident years	(19,685		)	(26,588		)	(23,730		)	(26,689		)	(10,786		)	(96,692		)	(77,829		)
Total losses and loss expenses	$	244,908		$	321,940		$	180,741		$	186,610		$	164,417		$	934,199		$	604,741
Selected ratios:
Ratio of net to gross premiums written	85.0		%	77.1		%	86.3		%	79.4		%	89.0		%	82.0		%	86.4		%
Losses and loss expense ratio:
Current period excluding items below	73.8		%	75.3		%	66.5		%	71.2		%	65.5		%	71.9		%	64.3		%
Current period—notable loss events	6.3		%	24.2		%	—		%	—		%	7.4		%	8.2		%	2.1		%
Current period—non-notable loss events	(0.7		)%	3.2		%	0.6		%	5.3		%	0.1		%	2.0		%	1.7		%
Change in prior accident years	(5.9		)%	(7.8		)%	(7.8		)%	(9.6		)%	(4.5		)%	(7.7		)%	(7.8		)%
Losses and loss expense ratio	73.5		%	94.9		%	59.3		%	66.9		%	68.5		%	74.4		%	60.3		%
Policy acquisition cost ratio	18.1		%	17.5		%	19.7		%	21.9		%	24.3		%	19.2		%	23.2		%
General and administrative expense ratio	20.6		%	13.4		%	18.8		%	17.4		%	15.3		%	17.5		%	18.0		%
Expense ratio	38.7		%	30.9		%	38.5		%	39.3		%	39.6		%	36.7		%	41.2		%
Combined ratio	112.2		%	125.8		%	97.8		%	106.2		%	108.1		%	111.1		%	101.5		%

14

Validus Holdings, Ltd.

Underwriting Results by Class of Business - Three Months Ended - Insurance Segment

	Three Months Ended December 31, 2017												Three Months Ended December 31, 2016
	Property			Specialty - Short-tail			Specialty - Other			Total			Property			Specialty - Short-tail			Specialty - Other			Total
Underwriting revenues
Gross premiums written	$	105,005		$	155,233		$	116,776		$	377,014		$	96,225		$	86,568		$	115,112		$	297,905
Reinsurance premiums ceded	(30,954		)	(14,924		)	(10,500		)	(56,378		)	(18,065		)	(6,350		)	(8,447		)	(32,862		)
Net premiums written	74,051			140,309			106,276			320,636			78,160			80,218			106,665			265,043
Change in unearned premiums	(8,986		)	23,026			(1,647		)	12,393			(7,184		)	(2,585		)	(15,131		)	(24,900		)
Net premiums earned	65,065			163,335			104,629			333,029			70,976			77,633			91,534			240,143
Other insurance related income										3,957												284
Total underwriting revenues										336,986												240,427
Underwriting deductions
Losses and loss expenses	80,935			98,083			65,890			244,908			63,502			42,274			58,641			164,417
Policy acquisition costs	16,008			22,010			22,385			60,403			13,836			23,401			21,157			58,394
Total underwriting deductions before G&A	96,943			120,093			88,275			305,311			77,338			65,675			79,798			222,811
Underwriting (loss) income before G&A	$	(31,878	)	$	43,242		$	16,354		$	31,675		$	(6,362	)	$	11,958		$	11,736		$	17,616
General and administrative expenses										64,945												33,069
Share compensation expenses										3,512												3,693
Total underwriting deductions										373,768												259,573
Underwriting (loss)										$	(36,782	)										$	(19,146	)
Supplemental information:
Losses and loss expenses:
Current period excluding items below	$	66,150		$	102,135		$	77,667		$	245,952		$	57,262		$	39,791		$	60,231		$	157,284
Current period—notable loss events	21,189			62			(334		)	20,917			14,208			3,358			164			17,730
Current period—non-notable loss events	(1,526		)	(750		)	—			(2,276		)	193			(4		)	—			189
Change in prior accident years	(4,878		)	(3,364		)	(11,443		)	(19,685		)	(8,161		)	(871		)	(1,754		)	(10,786		)
Total losses and loss expenses	$	80,935		$	98,083		$	65,890		$	244,908		$	63,502		$	42,274		$	58,641		$	164,417
Selected ratios:
Ratio of net to gross premiums written	70.5		%	90.4		%	91.0		%	85.0		%	81.2		%	92.7		%	92.7		%	89.0		%
Losses and loss expense ratio:
Current period excluding items below	101.6		%	62.6		%	74.2		%	73.8		%	80.7		%	51.3		%	65.8		%	65.5		%
Current period—notable loss events	32.6		%	—		%	(0.3		)%	6.3		%	20.0		%	4.3		%	0.2		%	7.4		%
Current period—non-notable loss events	(2.3		)%	(0.5		)%	—		%	(0.7		)%	0.3		%	—		%	—		%	0.1		%
Change in prior accident years	(7.5		)%	(2.1		)%	(10.9		)%	(5.9		)%	(11.5		)%	(1.1		)%	(1.9		)%	(4.5		)%
Losses and loss expense ratio	124.4		%	60.0		%	63.0		%	73.5		%	89.5		%	54.5		%	64.1		%	68.5		%
Policy acquisition cost ratio	24.6		%	13.5		%	21.4		%	18.1		%	19.5		%	30.1		%	23.1		%	24.3		%
General and administrative expense ratio										20.6		%										15.3		%
Expense ratio										38.7		%										39.6		%
Combined ratio										112.2		%										108.1		%

15

Validus Holdings, Ltd.

Underwriting Results by Class of Business - Years Ended - Insurance Segment

	Year Ended December 31, 2017												Year Ended December 31, 2016
	Property			Specialty - Short-tail			Specialty - Other			Total			Property			Specialty - Short-tail			Specialty - Other			Total
Underwriting revenues
Gross premiums written	$	397,292		$	580,952		$	474,889		$	1,453,133		$	371,221		$	397,602		$	425,314		$	1,194,137
Reinsurance premiums ceded	(130,554		)	(90,489		)	(40,012		)	(261,055		)	(78,676		)	(45,693		)	(38,300		)	(162,669		)
Net premiums written	266,738			490,463			434,877			1,192,078			292,545			351,909			387,014			1,031,468
Change in unearned premiums	(6,066		)	96,319			(26,246		)	64,007			(21,854		)	17,191			(23,861		)	(28,524		)
Net premiums earned	260,672			586,782			408,631			1,256,085			270,691			369,100			363,153			1,002,944
Other insurance related income										7,035												1,367
Total underwriting revenues										1,263,120												1,004,311
Underwriting deductions
Losses and loss expenses	315,443			368,990			249,766			934,199			183,663			199,848			221,230			604,741
Policy acquisition costs	61,034			94,997			85,155			241,186			50,019			105,189			77,572			232,780
Total underwriting deductions before G&A	376,477			463,987			334,921			1,175,385			233,682			305,037			298,802			837,521
Underwriting (loss) income before G&A	$	(115,805	)	$	122,795		$	73,710		$	87,735		$	37,009		$	64,063		$	64,351		$	166,790
General and administrative expenses										207,186												165,529
Share compensation expenses										12,774												14,987
Total underwriting deductions										1,395,345												1,018,037
Underwriting (loss)										$	(132,225	)										$	(13,726	)
Supplemental information:
Losses and loss expenses:
Current period excluding items below	$	239,511		$	374,345		$	288,815		$	902,671		$	198,128		$	179,544		$	266,840		$	644,512
Current period—notable loss events	77,192			24,116			1,720			103,028			17,230			3,358			164			20,752
Current period—non-notable loss events	24,942			250			—			25,192			6,160			11,145			1			17,306
Change in prior accident years	(26,202		)	(29,721		)	(40,769		)	(96,692		)	(37,855		)	5,801			(45,775		)	(77,829		)
Total losses and loss expenses	$	315,443		$	368,990		$	249,766		$	934,199		$	183,663		$	199,848		$	221,230		$	604,741
Selected ratios:
Ratio of net to gross premiums written	67.1		%	84.4		%	91.6		%	82.0		%	78.8		%	88.5		%	91.0		%	86.4		%
Losses and loss expense ratio:
Current period excluding items below	91.9		%	63.8		%	70.7		%	71.9		%	73.1		%	48.6		%	73.5		%	64.3		%
Current period—notable loss events	29.6		%	4.1		%	0.4		%	8.2		%	6.4		%	0.9		%	—		%	2.1		%
Current period—non-notable loss events	9.6		%	—		%	—		%	2.0		%	2.3		%	3.0		%	—		%	1.7		%
Change in prior accident years	(10.1		)%	(5.1		)%	(10.0		)%	(7.7		)%	(14.0		)%	1.6		%	(12.6		)%	(7.8		)%
Losses and loss expense ratio	121.0		%	62.8		%	61.1		%	74.4		%	67.8		%	54.1		%	60.9		%	60.3		%
Policy acquisition cost ratio	23.4		%	16.2		%	20.8		%	19.2		%	18.5		%	28.5		%	21.4		%	23.2		%
General and administrative expense ratio										17.5		%										18.0		%
Expense ratio										36.7		%										41.2		%
Combined ratio										111.1		%										101.5		%

16

Validus Holdings, Ltd.

Asset Management Segment Information

	Three Months Ended															Years Ended
	December 31, 2017			September 30, 2017			June 30, 2017			March 31, 2017			December 31, 2016			December 31, 2017			December 31, 2016
Fee revenues
Third party	$	5,061		$	5,095		$	5,549		$	4,644		$	3,928		$	20,349		$	18,771
Related party	418			457			644			631			737			2,150			3,329
Total fee revenues	5,479			5,552			6,193			5,275			4,665			22,499			22,100
Expenses
General and administrative expenses	2,582			2,929			3,549			3,844			2,676			12,904			10,233
Share compensation expenses	41			183			83			82			82			389			249
Finance expenses	30			32			44			31			33			137			947
Tax (benefit) expense	(61		)	(65		)	135			(1		)	90			8			90
Foreign exchange losses (gains)	—			7			1			(1		)	2			7			19
Total expenses	2,592			3,086			3,812			3,955			2,883			13,445			11,538
Income before investment (loss) income from AlphaCat Funds and Sidecars	2,887			2,466			2,381			1,320			1,782			9,054			10,562
Investment (loss) income from AlphaCat Funds and Sidecars (a)
AlphaCat Sidecars	11			201			(21		)	(112		)	14			79			607
AlphaCat ILS Funds - Lower Risk (b)	961			(7,553		)	1,301			2,189			1,998			(3,102		)	8,901
AlphaCat ILS Funds - Higher Risk (b)	(5,813		)	(21,816		)	2,600			2,367			1,864			(22,662		)	7,471
BetaCat ILS Funds	827			(922		)	263			368			644			536			3,623
PaCRe	—			—			—			—			—			—			(23		)
Validus' share of investment (loss) income from AlphaCat Funds and Sidecars	(4,014		)	(30,090		)	4,143			4,812			4,520			(25,149		)	20,579
Asset Management segment (loss) income	$	(1,127	)	$	(27,624	)	$	6,524		$	6,132		$	6,302		$	(16,095	)	$	31,141
Gross premiums written
AlphaCat Sidecars	$	(247	)	$	—		$	—		$	66		$	(163	)	$	(181	)	$	(341	)
AlphaCat ILS Funds - Lower Risk (b)	10,776			10,979			53,632			52,908			(19		)	128,295			112,222
AlphaCat ILS Funds - Higher Risk (b)	4,493			16,275			43,672			93,536			(105		)	157,976			140,022
AlphaCat Direct (c)	(24		)	(41		)	8,378			18,416			23			26,729			18,499
Total	$	14,998		$	27,213		$	105,682		$	164,926		$	(264	)	$	312,819		$	270,402

Notes:

(a) The investment income (loss) from AlphaCat funds and sidecars is based on equity accounting.

(b) Lower risk AlphaCat ILS funds have a maximum permitted portfolio expected loss of less than 7%, whereas higher risk AlphaCat ILS funds have a maximum permitted portfolio expected loss of greater than 7%. Expected loss represents the average annual loss over the set of simulation scenarios divided by the total limit.

(c) AlphaCat Direct includes direct investments from a third party investor in AlphaCat Reinsurance Ltd.

17

Validus Holdings, Ltd.

Assets Under Management

	As at
	January 1, 2018		October 1, 2017		July 1, 2017		April 1, 2017		January 1, 2017
Assets Under Management - Related Party (a)
AlphaCat Sidecars	$	5,631	$	5,608	$	5,686	$	5,656	$	7,729
AlphaCat ILS Funds - Lower Risk (b)	75,898		75,492		79,808		125,098		124,297
AlphaCat ILS Funds - Higher Risk (b)	68,290		62,566		84,663		86,679		83,881
AlphaCat Direct (c)	—		—		—		—		—
BetaCat ILS Funds	24,914		24,084		25,000		27,062		26,808
Total	$	174,733	$	167,750	$	195,157	$	244,495	$	242,715
Assets Under Management - Third Party (a)
AlphaCat Sidecars	$	20,565	$	20,459	$	20,590	$	20,422	$	28,829
AlphaCat ILS Funds - Lower Risk (b)	1,663,606		1,317,417		1,309,377		1,302,337		1,257,287
AlphaCat ILS Funds - Higher Risk (b)	1,029,224		687,674		896,639		790,734		738,813
AlphaCat Direct (c)	443,730		546,226		534,555		457,744		444,668
BetaCat ILS Funds	67,046		120,391		118,493		87,375		29,000
Total	$	3,224,171	$	2,692,167	$	2,879,654	$	2,658,612	$	2,498,597
Total Assets Under Management (a)	$	3,398,904	$	2,859,917	$	3,074,811	$	2,903,107	$	2,741,312

Notes:

(a) The Company’s assets under management are based on NAV and are represented by investments made by related parties and third parties in the feeder funds and on a direct basis.

(b) Lower risk AlphaCat ILS funds have a maximum permitted portfolio expected loss of less than 7%, whereas higher risk AlphaCat ILS funds have a maximum permitted portfolio expected loss of greater than 7%. Expected loss represents the average annual loss over the set of simulation scenarios divided by the total limit.

(c) AlphaCat Direct includes direct investments from a third party investor in AlphaCat Reinsurance Ltd.

18

Validus Holdings, Ltd.

Corporate and Investments

	Three Months Ended															Years Ended
	December 31, 2017			September 30, 2017			June 30, 2017			March 31, 2017			December 31, 2016			December 31, 2017			December 31, 2016
Managed investments
Managed net investment income (a)	$	41,609		$	37,091		$	38,063		$	36,192		$	35,875		$	152,955		$	141,718
Net realized gains (losses) on managed investments (a)	7,157			903			2,269			(2,892		)	9,166			7,437			14,680
Change in net unrealized (losses) gains on managed investments (a)	(24,861		)	941			15,942			14,349			(67,676		)	6,371			14,106
Income (loss) from investment affiliates	6,345			1,011			9,466			5,188			2,166			22,010			(2,083		)
Total managed investment return	$	30,250		$	39,946		$	65,740		$	52,837		$	(20,469	)	$	188,773		$	168,421
Corporate expenses
General and administrative expenses	$	5,582		$	8,836		$	16,219		$	17,961		$	19,973		$	48,598		$	72,249
Share compensation expenses	4,147			3,990			4,636			3,413			3,856			16,186			16,003
Finance expenses (a)	15,732			14,449			14,149			13,864			14,546			58,194			57,183
Dividends on preferred shares	5,828			5,627			2,203			2,203			2,203			15,861			4,455
Tax (benefit) (a)	(351		)	(2,567		)	(1,122		)	(3,548		)	(21,237		)	(7,588		)	(19,819		)
Total Corporate expenses	$	30,938		$	30,335		$	36,085		$	33,893		$	19,341		$	131,251		$	130,071
Other items
Foreign exchange (losses) gains (a)	(829		)	(1,495		)	(7,323		)	1,103			(850		)	(8,544		)	10,778
Other income (loss)	—			35			174			94			7			303			(766		)
Transaction expenses	—			—			(4,427		)	—			—			(4,427		)	—
Total other items	$	(829	)	$	(1,460	)	$	(11,576	)	$	1,197		$	(843	)	$	(12,668	)	$	10,012
Total Corporate and Investments	$	(1,517	)	$	8,151		$	18,079		$	20,141		$	(40,653	)	$	44,854		$	48,362

Notes:

(a) These items exclude the components which are included in the Asset Management segment income (loss) and amounts which are consolidated from variable interest entities.

19

Validus Holdings, Ltd.

Segment Reconciliation - Three Months Ended

	Three Months Ended December 31, 2017
	Reinsurance Segment			Insurance Segment			Asset Management Segment and Consolidated VIEs			Corporate & Investments			Eliminations			Total
Underwriting revenues
Gross premiums written	$	51,960		$	377,014		$	14,998		$	—		$	(649	)	$	443,323
Reinsurance premiums ceded	(40,716		)	(56,378		)	—			—			649			(96,445		)
Net premiums written	11,244			320,636			14,998			—			—			346,878
Change in unearned premiums	239,320			12,393			52,886			—			—			304,599
Net premiums earned	250,564			333,029			67,884			—			—			651,477
Other insurance related income	15			3,957			6,778			—			(3,811		)	6,939
Total underwriting revenues	250,579			336,986			74,662			—			(3,811		)	658,416
Underwriting deductions
Losses and loss expenses	135,804			244,908			99,130			—			—			479,842
Policy acquisition costs	58,107			60,403			8,557			—			—			127,067
General and administrative expenses	23,604			64,945			7,202			5,582			(3,811		)	97,522
Share compensation expenses	2,331			3,512			41			4,147			—			10,031
Total underwriting deductions	219,846			373,768			114,930			9,729			(3,811		)	714,462
Underwriting income (loss)	$	30,733		$	(36,782	)	$	(40,268	)	$	(9,729	)	$	—		$	(56,046	)
Net investment return (a)	—			—			9,405			30,250			—			39,655
Other items (b)	—			—			468			(22,038		)	—			(21,570		)
(Income) attributable to AlphaCat investors	—			—			(37,868		)	—			—			(37,868		)
Net loss attributable to noncontrolling interests	—			—			67,136			—			—			67,136
Net income (loss) available (attributable) to Validus common shareholders	$	30,733		$	(36,782	)	$	(1,127	)	$	(1,517	)	$	—		$	(8,693	)
	Three Months Ended December 31, 2016
	Reinsurance Segment			Insurance Segment			Asset Management Segment and Consolidated VIEs			Corporate & Investments			Eliminations			Total
Underwriting revenues
Gross premiums written	$	41,813		$	297,905		$	(264	)	$	—		$	—		$	339,454
Reinsurance premiums ceded	(7,773		)	(32,862		)	—			—			—			(40,635		)
Net premiums written	34,040			265,043			(264		)	—			—			298,819
Change in unearned premiums	200,129			(24,900		)	66,351			—			—			241,580
Net premiums earned	234,169			240,143			66,087			—			—			540,399
Other insurance related income	9			284			4,664			—			(4,396		)	561
Total underwriting revenues	234,178			240,427			70,751			—			(4,396		)	540,960
Underwriting deductions
Losses and loss expenses	93,503			164,417			17,206			—			—			275,126
Policy acquisition costs	55,352			58,394			7,143			—			—			120,889
General and administrative expenses	21,248			33,069			8,061			19,973			(4,396		)	77,955
Share compensation expenses	2,811			3,693			82			3,856			—			10,442
Total underwriting deductions	172,914			259,573			32,492			23,829			(4,396		)	484,412
Underwriting income (loss)	$	61,264		$	(19,146	)	$	38,259		$	(23,829	)	$	—		$	56,548
Net investment return (a)	—			—			2,548			(20,469		)	—			(17,921		)
Other items (b)	—			—			(225		)	3,645			—			3,420
(Income) attributable to AlphaCat investors	—			—			(7,080		)	—			—			(7,080		)
Net (income) attributable to noncontrolling interests	—			—			(27,200		)	—			—			(27,200		)
Net income (loss) available (attributable) to Validus common shareholders	$	61,264		$	(19,146	)	$	6,302		$	(40,653	)	$	—		$	7,767

Notes:

(a) Net investment return includes net investment income, net realized and change in net unrealized gains (losses) on investments and income (loss) from investment affiliates.

(b) Other items includes finance expenses, transaction expenses, dividends on preferred shares, tax benefit (expense), foreign exchange gains (losses), income (loss) from operating affiliate and other income (loss).

20

Validus Holdings, Ltd.

Segment Reconciliation - Years Ended

	Year Ended December 31, 2017
	Reinsurance Segment			Insurance Segment			Asset Management Segment and Consolidated VIEs			Corporate & Investments			Eliminations			Total
Underwriting revenues
Gross premiums written	$	1,195,207		$	1,453,133		$	312,819		$	—		$	(10,221	)	$	2,950,938
Reinsurance premiums ceded	(209,289		)	(261,055		)	(9,510		)	—			10,221			(469,633		)
Net premiums written	985,918			1,192,078			303,309			—			—			2,481,305
Change in unearned premiums	37,086			64,007			(1,310		)	—			—			99,783
Net premiums earned	1,023,004			1,256,085			301,999			—			—			2,581,088
Other insurance related income	67			7,035			23,896			—			(18,122		)	12,876
Total underwriting revenues	1,023,071			1,263,120			325,895			—			(18,122		)	2,593,964
Underwriting deductions
Losses and loss expenses	692,719			934,199			673,260			—			—			2,300,178
Policy acquisition costs	199,430			241,186			30,937			—			—			471,553
General and administrative expenses	80,177			207,186			34,298			48,598			(18,122		)	352,137
Share compensation expenses	10,762			12,774			389			16,186			—			40,111
Total underwriting deductions	983,088			1,395,345			738,884			64,784			(18,122		)	3,163,979
Underwriting income (loss)	$	39,983		$	(132,225	)	$	(412,989	)	$	(64,784	)	$	—		$	(570,015	)
Net investment return (a)	—			—			21,948			188,773			—			210,721
Other items (b)	—			—			737			(79,135		)	—			(78,398		)
Loss attributable to AlphaCat investors	—			—			16,929			—			—			16,929
Net loss attributable to noncontrolling interests	—			—			357,280			—			—			357,280
Net income (loss) available (attributable) to Validus common shareholders	$	39,983		$	(132,225	)	$	(16,095	)	$	44,854		$	—		$	(63,483	)
	Year Ended December 31, 2016
	Reinsurance Segment			Insurance Segment			Asset Management Segment and Consolidated VIEs			Corporate & Investments			Eliminations			Total
Underwriting revenues
Gross premiums written	$	1,184,912		$	1,194,137		$	270,402		$	—		$	(746	)	$	2,648,705
Reinsurance premiums ceded	(121,331		)	(162,669		)	(6,451		)	—			746			(289,705		)
Net premiums written	1,063,581			1,031,468			263,951			—			—			2,359,000
Change in unearned premiums	(67,432		)	(28,524		)	(13,879		)	—			—			(109,835		)
Net premiums earned	996,149			1,002,944			250,072			—			—			2,249,165
Other insurance related income	25			1,367			22,386			—			(20,817		)	2,961
Total underwriting revenues	996,174			1,004,311			272,458			—			(20,817		)	2,252,126
Underwriting deductions
Losses and loss expenses	415,505			604,741			44,851			—			—			1,065,097
Policy acquisition costs	189,797			232,780			26,905			—			—			449,482
General and administrative expenses	85,000			165,529			34,333			72,249			(20,817		)	336,294
Share compensation expenses	11,668			14,987			249			16,003			—			42,907
Total underwriting deductions	701,970			1,018,037			106,338			88,252			(20,817		)	1,893,780
Underwriting income (loss)	$	294,204		$	(13,726	)	$	166,120		$	(88,252	)	$	—		$	358,346
Net investment return (a)	—			—			13,106			168,421			(597		)	180,930
Other items (b)	—			—			(1,364		)	(31,807		)	—			(33,171		)
(Income) attributable to AlphaCat investors	—			—			(23,358		)	—			—			(23,358		)
Net (income) attributable to noncontrolling interests	—			—			(123,363		)	—			—			(123,363		)
Net income (loss) available (attributable) to Validus common shareholders	$	294,204		$	(13,726	)	$	31,141		$	48,362		$	(597	)	$	359,384

Notes:

(a) Net investment return includes net investment income, net realized and change in net unrealized gains (losses) on investments and income (loss) from investment affiliates.

(b) Other items includes finance expenses, transaction expenses, dividends on preferred shares, tax benefit (expense), foreign exchange gains (losses), income (loss) from operating affiliate and other income (loss).

21

Validus Holdings, Ltd.

Non-GAAP Financial Measure Reconciliation

Net Operating Income (Loss) available (attributable) to Validus Common Shareholders, Net Operating Income (Loss) per diluted share available (attributable) to Validus Common Shareholders and Annualized Net Operating Return on Average Equity)

	Three Months Ended						Years Ended
	December 31, 2017			December 31, 2016			December 31, 2017			December 31, 2016
Net (loss) income (attributable) available to Validus common shareholders	$	(8,693	)	$	7,767		$	(63,483	)	$	359,384
Non-GAAP Adjustments:
Net realized (gains) on investments	(5,607		)	(9,220		)	(7,623		)	(15,757		)
Change in net unrealized losses (gains) on investments	21,257			67,460			(3,215		)	(16,871		)
(Income) loss from investment affiliates	(6,345		)	(2,166		)	(22,010		)	2,083
Foreign exchange losses (gains)	283			901			7,447			(10,864		)
Other (income) loss	—			(7		)	(303		)	766
Transaction expenses	—			—			4,427			—
Net income (loss) attributable to noncontrolling interests	4,597			(412		)	(767		)	457
Tax (benefit) expense (a)	(1,339		)	(5,863		)	521			1,687
Net operating income (loss) available (attributable) to Validus common shareholders (b)	$	4,153		$	58,460		$	(85,006	)	$	320,885
Weighted average number of diluted common shares outstanding	78,966,938			80,621,967			79,091,376			82,359,460
(Loss) earnings per diluted share (attributable) available to Validus common shareholders	$	(0.11	)	$	0.10		$	(0.80	)	$	4.36
Non-GAAP Adjustments:
Net realized (gains) on investments	(0.07		)	(0.11		)	(0.10		)	(0.19		)
Change in net unrealized losses (gains) on investments	0.27			0.84			(0.04		)	(0.20		)
(Income) loss from investment affiliates	(0.08		)	(0.03		)	(0.28		)	0.03
Foreign exchange losses (gains)	—			0.01			0.09			(0.14		)
Other (income) loss	—			—			—			0.01
Transaction expenses	—			—			0.06			—
Net income (loss) attributable to noncontrolling interests	0.06			(0.01		)	(0.01		)	0.01
Tax (benefit) expense (a)	(0.02		)	(0.07		)	0.01			0.02
Net operating income (loss) per diluted share available (attributable) to Validus common shareholders (b)	$	0.05		$	0.73		$	(1.07	)	$	3.90
Average shareholders' equity available to Validus common shareholders (c)	$	3,515,680		$	3,702,956		$	3,658,591		$	3,697,114
Annualized return on average equity	(1.0		%)	0.8		%	(1.7		%)	9.7		%
Annualized net operating return on average equity (b)	0.5		%	6.3		%	(2.3		%)	8.7		%

Notes:

(a) Represents the tax expense or benefit associated with the specific country to which the pre-tax adjustment relates to. The tax impact is estimated by applying the statutory rates of applicable jurisdictions, after consideration of other relevant factors including the ability to utilize tax losses carried forward.

(b) Non-GAAP financial measure. Refer to the Explanatory Notes on page 3 for further information.

(c) Average shareholders’ equity for the three months ended is the average of the beginning and ending quarter end shareholders’ equity balances, excluding the liquidation value of the preferred shares. Average shareholders’ equity for the year ended is the average of the beginning, ending and intervening quarter end shareholders’ equity balances, excluding the liquidation value of the preferred shares.

22

Validus Holdings, Ltd.

Gross Premiums Written by Segment by Class of Business

		Three Months Ended															Years Ended
		December 31, 2017			September 30, 2017			June 30, 2017			March 31, 2017			December 31, 2016			December 31, 2017			December 31, 2016
Reinsurance Segment
Property	Cat XOL (a)	$	5,089		$	108,717		$	162,701		$	155,977		$	1,918		$	432,484		$	374,242
	Per Risk XOL	1,330			11,907			4,358			8,385			119			25,980			25,360
	Proportional (b)	11,707			6,857			19,644			52,305			6,442			90,513			97,661
	Total Property	18,126			127,481			186,703			216,667			8,479			548,977			497,263
Specialty - Short-tail	Aerospace and Aviation	886			4,751			25,308			21,334			1,787			52,279			62,071
	Agriculture	5,168			449			22,061			152,447			(9,681		)	180,125			243,180
	Composite	4,209			7,170			17,349			34,090			2,281			62,818			59,244
	Marine	1,224			2,559			16,324			103,162			(2,328		)	123,269			117,614
	Other Specialty - Short-tail (c)	365			1,410			3,507			10,837			29			16,119			8,359
	Technical Lines	110			3,207			4,959			4,182			629			12,458			12,534
	Terrorism	529			1,010			(154		)	5,039			(2,240		)	6,424			6,159
	Trade Credit	(89		)	(8		)	50			44,154			28			44,107			38,279
	Workers' Compensation	595			3,084			2,200			1,633			732			7,512			8,064
	Total Specialty - Short Tail	12,997			23,632			91,604			376,878			(8,763		)	505,111			555,504
Specialty - Other	Casualty	12,023			8,890			39,126			24,510			31,991			84,549			86,107
	Financial	8,814			9,569			13,101			25,086			10,106			56,570			46,038
	Total Specialty - Other	20,837			18,459			52,227			49,596			42,097			141,119			132,145
	Total Reinsurance Segment	$	51,960		$	169,572		$	330,534		$	643,141		$	41,813		$	1,195,207		$	1,184,912
Insurance Segment
Property	Direct	$	78,639		$	76,868		$	86,113		$	67,878		$	71,353		$	309,498		$	277,024
	Downstream Energy and Power	26,366			17,994			29,765			13,669			24,872			87,794			94,197
	Total Property	105,005			94,862			115,878			81,547			96,225			397,292			371,221
Specialty - Short-tail	Accident and Health	4,560			4,411			5,176			5,910			4,929			20,057			29,326
	Agriculture	65,737			51,800			23,939			84,299			—			225,775			—
	Aviation	9,119			5,587			4,417			5,159			13,235			24,282			27,290
	Contingency	11,754			3,615			6,988			3,964			14,160			26,321			35,412
	Marine	34,761			29,735			59,409			47,364			28,445			171,269			192,526
	Political Lines (d)	29,302			23,167			28,254			32,525			25,799			113,248			113,048
	Total Specialty - Short Tail	155,233			118,315			128,183			179,221			86,568			580,952			397,602
Specialty - Other	Financial	22,281			19,530			13,980			13,738			16,332			69,529			53,484
	Liability (e)	60,874			65,906			67,393			58,637			56,967			252,810			225,776
	Marine and Energy Liability	10,428			8,034			12,900			24,172			10,961			55,534			53,515
	Political Risk	21,394			20,231			18,545			22,136			27,689			82,306			78,598
	Products and Airports	1,799			6,394			3,178			3,339			3,163			14,710			13,941
	Total Specialty - Other	116,776			120,095			115,996			122,022			115,112			474,889			425,314
	Total Insurance Segment	$	377,014		$	333,272		$	360,057		$	382,790		$	297,905		$	1,453,133		$	1,194,137
Asset Management Segment
Property	Cat XOL	$	13,278		$	22,013		$	99,318		$	159,765		$	(264	)	$	294,374		$	260,786
	Total Property	13,278			22,013			99,318			159,765			(264		)	294,374			260,786
Specialty - Short-tail	Agriculture	(1,391		)	1,936			4,020			(35		)	4			4,530			2,879
	Composite	3,111			2,872			2,362			4,788			—			13,133			5,518
	Workers' Compensation	—			392			(18		)	408			(4		)	782			1,219
	Total Specialty - Short Tail	1,720			5,200			6,364			5,161			—			18,445			9,616
	Total Asset Management Segment	$	14,998		$	27,213		$	105,682		$	164,926		$	(264	)	$	312,819		$	270,402
Intersegment Revenue	Property	(649		)	(6,248		)	(725		)	—			—			(7,622		)	(746		)
	Specialty - Short-tail	—			47			(2,646		)	—			—			(2,599		)	—
	Specialty - Other	—			—			—			—			—			—			—
	Total Intersegment Revenue	$	(649	)	$	(6,201	)	$	(3,371	)	$	—		$	—		$	(10,221	)	$	(746	)
Total Gross Premiums Written		$	443,323		$	523,856		$	792,902		$	1,190,857		$	339,454		$	2,950,938		$	2,648,705

Notes:

(a) Property Cat XOL is comprised of Catastrophe XOL, Aggregate XOL, Reinstatement Premium Protection, Per Event XOL, Second Event and Third Event covers.

(b) Proportional is comprised of Quota Share and Surplus Share covers.

(c) Other Specialty - Short-tail classes include Contingency, Crisis Management and Life and Accident & Health.

(d) Political Lines includes War and Political Violence.

(e) Liability includes General Liability, Professional Liability, Products Liability and Miscellaneous Malpractice.

23

Validus Holdings, Ltd.

Consolidated Analysis of Reserves for Losses and Loss Expenses

	December 31, 2017									December 31, 2016
	Reserve for losses and loss expenses			Loss reserves recoverable			Net			Reserve for losses and loss expenses			Loss reserves recoverable			Net
Property	$	2,291,743		$	739,153		$	1,552,590		$	830,672		$	107,573		$	723,099
Specialty - Short-tail	1,445,512			356,618			1,088,894			1,185,654			186,817			998,837
Specialty - Other	1,094,135			138,226			955,909			978,869			136,031			842,838
Total	$	4,831,390		$	1,233,997		$	3,597,393		$	2,995,195		$	430,421		$	2,564,774
	December 31, 2017									December 31, 2016
	Case Reserves			IBNR Reserves			Reserve for losses and loss expenses			Case Reserves			IBNR Reserves			Reserve for losses and loss expenses
Property	$	893,180		$	1,398,563		$	2,291,743		$	390,141		$	440,531		$	830,672
Specialty - Short-tail	515,450			930,062			1,445,512			509,317			676,337			1,185,654
Specialty - Other	345,214			748,921			1,094,135			338,314			640,555			978,869
Total	$	1,753,844		$	3,077,546		$	4,831,390		$	1,237,772		$	1,757,423		$	2,995,195
% of Total	36.3		%	63.7		%	100.0		%	41.3		%	58.7		%	100.0		%

24

Validus Holdings, Ltd.

Consolidated Losses and Loss Ratios by Segment

	At or for the Three Months Ended
	December 31, 2017												December 31, 2016
	Reinsurance Segment			Insurance Segment			Asset Management Segment			Total			Reinsurance Segment			Insurance Segment			Asset Management Segment			Total
Gross reserves, beginning of period	$	1,939,766		$	2,319,656		$	676,215		$	4,935,637		$	1,232,108		$	1,766,735		$	37,144		$	3,035,987
Loss reserves recoverable	(611,116		)	(663,900		)	(60,000		)	(1,335,016		)	(122,982		)	(321,627		)	—			(444,609		)
Net reserves, beginning of period	1,328,650			1,655,756			616,215			3,600,621			1,109,126			1,445,108			37,144			2,591,378
Incurred losses - current year	157,049			264,593			101,148			522,790			128,375			175,203			18,335			321,913
Change in prior accident years	(21,245		)	(19,685		)	(2,018		)	(42,948		)	(34,872		)	(10,786		)	(1,129		)	(46,787		)
Total net incurred losses and loss expenses	135,804			244,908			99,130			479,842			93,503			164,417			17,206			275,126
Foreign exchange loss (gain)	2,211			701			(69		)	2,843			(15,303		)	(8,755		)	(250		)	(24,308		)
Paid losses - current year	(150,868		)	(163,686		)	(44,255		)	(358,809		)	(61,816		)	(81,579		)	(5,477		)	(148,872		)
Paid losses - prior years	(47,274		)	(78,108		)	(1,722		)	(127,104		)	(40,541		)	(87,920		)	(89		)	(128,550		)
Total net paid losses	(198,142		)	(241,794		)	(45,977		)	(485,913		)	(102,357		)	(169,499		)	(5,566		)	(277,422		)
Net reserves, end of period	1,268,523			1,659,571			669,299			3,597,393			1,084,969			1,431,271			48,534			2,564,774
Loss reserves recoverable	548,131			640,866			45,000			1,233,997			108,528			321,893			—			430,421
Gross reserves, end of period	$	1,816,654		$	2,300,437		$	714,299		$	4,831,390		$	1,193,497		$	1,753,164		$	48,534		$	2,995,195
Net premiums earned	$	250,564		$	333,029		$	67,884		$	651,477		$	234,169		$	240,143		$	66,087		$	540,399
Current year loss ratio	62.7		%	79.4		%	149.0		%	80.3		%	54.8		%	73.0		%	27.7		%	59.6		%
Change in prior accident years loss ratio	(8.5		)%	(5.9		)%	(3.0		)%	(6.6		)%	(14.9		)%	(4.5		)%	(1.7		)%	(8.7		)%
Net loss ratio	54.2		%	73.5		%	146.0		%	73.7		%	39.9		%	68.5		%	26.0		%	50.9		%
Paid to incurred ratio	145.9		%	98.7		%	46.4		%	101.3		%	109.5		%	103.1		%	32.3		%	100.8		%
	At or for the Years Ended
	December 31, 2017												December 31, 2016
	Reinsurance Segment			Insurance Segment			Asset Management Segment			Total			Reinsurance Segment			Insurance Segment			Asset Management Segment			Total
Gross reserves, beginning of year	$	1,193,497		$	1,753,164		$	48,534		$	2,995,195		$	1,237,245		$	1,748,309		$	11,013		$	2,996,567
Loss reserves recoverable	(108,528		)	(321,893		)	—			(430,421		)	(45,217		)	(305,369		)	—			(350,586		)
Net reserves, beginning of year	1,084,969			1,431,271			48,534			2,564,774			1,192,028			1,442,940			11,013			2,645,981
Net reserves acquired	—			23,753			—			23,753			—			—			—			—
Incurred losses - current year	806,021			1,030,891			685,799			2,522,711			551,131			682,570			47,588			1,281,289
Change in prior accident years	(113,302		)	(96,692		)	(12,539		)	(222,533		)	(135,626		)	(77,829		)	(2,737		)	(216,192		)
Total net incurred losses and loss expenses	692,719			934,199			673,260			2,300,178			415,505			604,741			44,851			1,065,097
Foreign exchange loss (gain)	31,205			16,908			1,004			49,117			(1,501		)	(29,965		)	(436		)	(31,902		)
Paid losses - current year	(238,550		)	(318,014		)	(44,313		)	(600,877		)	(200,031		)	(182,554		)	(6,649		)	(389,234		)
Paid losses - prior years	(301,820		)	(428,546		)	(9,186		)	(739,552		)	(321,032		)	(403,891		)	(245		)	(725,168		)
Total net paid losses	(540,370		)	(746,560		)	(53,499		)	(1,340,429		)	(521,063		)	(586,445		)	(6,894		)	(1,114,402		)
Net reserves, end of year	1,268,523			1,659,571			669,299			3,597,393			1,084,969			1,431,271			48,534			2,564,774
Loss reserves recoverable	548,131			640,866			45,000			1,233,997			108,528			321,893			—			430,421
Gross reserves, end of year	$	1,816,654		$	2,300,437		$	714,299		$	4,831,390		$	1,193,497		$	1,753,164		$	48,534		$	2,995,195
Net premiums earned	$	1,023,004		$	1,256,085		$	301,999		$	2,581,088		$	996,149		$	1,002,944		$	250,072		$	2,249,165
Current year loss ratio	78.8		%	82.1		%	227.1		%	97.7		%	55.3		%	68.1		%	19.0		%	57.0		%
Change in prior accident years loss ratio	(11.1		)%	(7.7		)%	(4.2		)%	(8.6		)%	(13.6		)%	(7.8		)%	(1.1		)%	(9.6		)%
Net loss ratio	67.7		%	74.4		%	222.9		%	89.1		%	41.7		%	60.3		%	17.9		%	47.4		%
Paid to incurred ratio	78.0		%	79.9		%	7.9		%	58.3		%	125.4		%	97.0		%	15.4		%	104.6		%

25

Validus Holdings, Ltd.

Losses and Loss Ratios by Class of Business - Reinsurance Segment

Table of Contents

	At or for the Three Months Ended
	December 31, 2017												December 31, 2016
	Property			Specialty - Short-tail			Specialty - Other			Total			Property			Specialty - Short-tail			Specialty - Other			Total
Gross reserves, beginning of period	$	1,114,645		$	729,771		$	95,350		$	1,939,766		$	516,537		$	678,679		$	36,892		$	1,232,108
Loss reserves recoverable	(472,914		)	(135,703		)	(2,499		)	(611,116		)	(53,867		)	(67,504		)	(1,611		)	(122,982		)
Net reserves, beginning of period	641,731			594,068			92,851			1,328,650			462,670			611,175			35,281			1,109,126
Incurred losses - current year	62,599			70,746			23,704			157,049			43,596			73,987			10,792			128,375
Change in prior accident years	(1,955		)	(16,252		)	(3,038		)	(21,245		)	(5,215		)	(27,889		)	(1,768		)	(34,872		)
Total net incurred losses and loss expenses	60,644			54,494			20,666			135,804			38,381			46,098			9,024			93,503
Foreign exchange loss (gain)	953			1,222			36			2,211			(12,037		)	(3,068		)	(198		)	(15,303		)
Paid losses - current year	(123,815		)	(26,698		)	(355		)	(150,868		)	(21,995		)	(38,610		)	(1,211		)	(61,816		)
Paid losses - prior years	(17,308		)	(29,419		)	(547		)	(47,274		)	(32,003		)	(9,506		)	968			(40,541		)
Total net paid losses	(141,123		)	(56,117		)	(902		)	(198,142		)	(53,998		)	(48,116		)	(243		)	(102,357		)
Net reserves, end of period	562,205			593,667			112,651			1,268,523			435,016			606,089			43,864			1,084,969
Loss reserves recoverable	412,592			131,287			4,252			548,131			41,892			66,423			213			108,528
Gross reserves, end of period	$	974,797		$	724,954		$	116,903		$	1,816,654		$	476,908		$	672,512		$	44,077		$	1,193,497
Net premiums earned	$	98,991		$	116,425		$	35,148		$	250,564		$	101,582		$	112,890		$	19,697		$	234,169
Current year loss ratio	63.2		%	60.8		%	67.4		%	62.7		%	42.9		%	65.5		%	54.8		%	54.8		%
Change in prior accident years loss ratio	(2.0		)%	(14.0		)%	(8.6		)%	(8.5		)%	(5.1		)%	(24.7		)%	(9.0		)%	(14.9		)%
Net loss ratio	61.2		%	46.8		%	58.8		%	54.2		%	37.8		%	40.8		%	45.8		%	39.9		%
Paid to incurred ratio	232.7		%	103.0		%	4.4		%	145.9		%	140.7		%	104.4		%	2.7		%	109.5		%
	At or for the Years Ended
	December 31, 2017												December 31, 2016
	Property			Specialty - Short-tail			Specialty - Other			Total			Property			Specialty - Short-tail			Specialty - Other			Total
Gross reserves, beginning of year	$	476,908		$	672,512		$	44,077		$	1,193,497		$	569,794		$	656,444		$	11,007		$	1,237,245
Loss reserves recoverable	(41,892		)	(66,423		)	(213		)	(108,528		)	(22,137		)	(23,080		)	—			(45,217		)
Net reserves, beginning of year	435,016			606,089			43,864			1,084,969			547,657			633,364			11,007			1,192,028
Incurred losses - current year	398,175			333,561			74,285			806,021			163,436			351,655			36,040			551,131
Change in prior accident years	(34,063		)	(76,620		)	(2,619		)	(113,302		)	(61,102		)	(70,439		)	(4,085		)	(135,626		)
Total net incurred losses and loss expenses	364,112			256,941			71,666			692,719			102,334			281,216			31,955			415,505
Foreign exchange loss (gain)	22,917			7,525			763			31,205			2,200			(3,905		)	204			(1,501		)
Paid losses - current year	(135,183		)	(102,395		)	(972		)	(238,550		)	(30,658		)	(168,040		)	(1,333		)	(200,031		)
Paid losses - prior years	(124,657		)	(174,493		)	(2,670		)	(301,820		)	(186,517		)	(136,546		)	2,031			(321,032		)
Total net paid losses	(259,840		)	(276,888		)	(3,642		)	(540,370		)	(217,175		)	(304,586		)	698			(521,063		)
Net reserves, end of year	562,205			593,667			112,651			1,268,523			435,016			606,089			43,864			1,084,969
Loss reserves recoverable	412,592			131,287			4,252			548,131			41,892			66,423			213			108,528
Gross reserves, end of year	$	974,797		$	724,954		$	116,903		$	1,816,654		$	476,908		$	672,512		$	44,077		$	1,193,497
Net premiums earned	$	447,376		$	453,020		$	122,608		$	1,023,004		$	419,135		$	522,616		$	54,398		$	996,149
Current year loss ratio	89.0		%	73.6		%	60.6		%	78.8		%	39.0		%	67.3		%	66.2		%	55.3		%
Change in prior accident years loss ratio	(7.6		)%	(16.9		)%	(2.1		)%	(11.1		)%	(14.6		)%	(13.5		)%	(7.5		)%	(13.6		)%
Net loss ratio	81.4		%	56.7		%	58.5		%	67.7		%	24.4		%	53.8		%	58.7		%	41.7		%
Paid to incurred ratio	71.4		%	107.8		%	5.1		%	78.0		%	212.2		%	108.3		%	(2.2		)%	125.4		%

26

Validus Holdings, Ltd.

Losses and Loss Ratios by Class of Business - Insurance Segment

	At or for the Three Months Ended
	December 31, 2017												December 31, 2016
	Property			Specialty - Short-tail			Specialty - Other			Total			Property			Specialty - Short-tail			Specialty - Other			Total
Gross reserves, beginning of period	$	643,001		$	709,902		$	966,753		$	2,319,656		$	291,403		$	505,461		$	969,871		$	1,766,735
Loss reserves recoverable	(299,466		)	(220,126		)	(144,308		)	(663,900		)	(64,369		)	(110,233		)	(147,025		)	(321,627		)
Net reserves, beginning of period	343,535			489,776			822,445			1,655,756			227,034			395,228			822,846			1,445,108
Incurred losses - current year	85,813			101,447			77,333			264,593			71,663			43,145			60,395			175,203
Change in prior accident years	(4,878		)	(3,364		)	(11,443		)	(19,685		)	(8,161		)	(871		)	(1,754		)	(10,786		)
Total net incurred losses and loss expenses	80,935			98,083			65,890			244,908			63,502			42,274			58,641			164,417
Foreign exchange (gain) loss	(756		)	698			759			701			(2,506		)	(2,678		)	(3,571		)	(8,755		)
Paid losses - current year	(59,001		)	(95,061		)	(9,624		)	(163,686		)	(31,646		)	(28,735		)	(21,198		)	(81,579		)
Paid losses - prior years	(18,382		)	(23,514		)	(36,212		)	(78,108		)	(9,647		)	(20,529		)	(57,744		)	(87,920		)
Total net paid losses	(77,383		)	(118,575		)	(45,836		)	(241,794		)	(41,293		)	(49,264		)	(78,942		)	(169,499		)
Net reserves, end of period	346,331			469,982			843,258			1,659,571			246,737			385,560			798,974			1,431,271
Loss reserves recoverable	281,561			225,331			133,974			640,866			65,681			120,394			135,818			321,893
Gross reserves, end of period	$	627,892		$	695,313		$	977,232		$	2,300,437		$	312,418		$	505,954		$	934,792		$	1,753,164
Net premiums earned	$	65,065		$	163,335		$	104,629		$	333,029		$	70,976		$	77,633		$	91,534		$	240,143
Current year loss ratio	131.9		%	62.1		%	73.9		%	79.4		%	101.0		%	55.6		%	66.0		%	73.0		%
Change in prior accident years loss ratio	(7.5		)%	(2.1		)%	(10.9		)%	(5.9		)%	(11.5		)%	(1.1		)%	(1.9		)%	(4.5		)%
Net loss ratio	124.4		%	60.0		%	63.0		%	73.5		%	89.5		%	54.5		%	64.1		%	68.5		%
Paid to incurred ratio	95.6		%	120.9		%	69.6		%	98.7		%	65.0		%	116.5		%	134.6		%	103.1		%
	At or for the Years Ended
	December 31, 2017												December 31, 2016
	Property			Specialty - Short-tail			Specialty - Other			Total			Property			Specialty - Short-tail			Specialty - Other			Total
Gross reserves, beginning of year	$	312,418		$	505,954		$	934,792		$	1,753,164		$	290,736		$	474,526		$	983,047		$	1,748,309
Loss reserves recoverable	(65,681		)	(120,394		)	(135,818		)	(321,893		)	(73,829		)	(96,881		)	(134,659		)	(305,369		)
Net reserves, beginning of year	246,737			385,560			798,974			1,431,271			216,907			377,645			848,388			1,442,940
Net reserves acquired	—			23,753			—			23,753			—			—			—			—
Incurred losses - current year	341,645			398,711			290,535			1,030,891			221,518			194,047			267,005			682,570
Change in prior accident years	(26,202		)	(29,721		)	(40,769		)	(96,692		)	(37,855		)	5,801			(45,775		)	(77,829		)
Total net incurred losses and loss expenses	315,443			368,990			249,766			934,199			183,663			199,848			221,230			604,741
Foreign exchange loss (gain)	2,605			6,543			7,760			16,908			(5,395		)	(10,722		)	(13,848		)	(29,965		)
Paid losses - current year	(116,479		)	(182,824		)	(18,711		)	(318,014		)	(77,034		)	(63,477		)	(42,043		)	(182,554		)
Paid losses - prior years	(101,975		)	(132,040		)	(194,531		)	(428,546		)	(71,404		)	(117,734		)	(214,753		)	(403,891		)
Total net paid losses	(218,454		)	(314,864		)	(213,242		)	(746,560		)	(148,438		)	(181,211		)	(256,796		)	(586,445		)
Net reserves, end of year	346,331			469,982			843,258			1,659,571			246,737			385,560			798,974			1,431,271
Loss reserves recoverable	281,561			225,331			133,974			640,866			65,681			120,394			135,818			321,893
Gross reserves, end of year	$	627,892		$	695,313		$	977,232		$	2,300,437		$	312,418		$	505,954		$	934,792		$	1,753,164
Net premiums earned	$	260,672		$	586,782		$	408,631		$	1,256,085		$	270,691		$	369,100		$	363,153		$	1,002,944
Current year loss ratio	131.1		%	67.9		%	71.1		%	82.1		%	81.8		%	52.5		%	73.5		%	68.1		%
Change in prior accident years loss ratio	(10.1		)%	(5.1		)%	(10.0		)%	(7.7		)%	(14.0		)%	1.6		%	(12.6		)%	(7.8		)%
Net loss ratio	121.0		%	62.8		%	61.1		%	74.4		%	67.8		%	54.1		%	60.9		%	60.3		%
Paid to incurred ratio	69.3		%	85.3		%	85.4		%	79.9		%	80.8		%	90.7		%	116.1		%	97.0		%

27

Validus Holdings, Ltd.

Analysis of Loss Ratios by Segment

	Three Months Ended										Years Ended
	December 31, 2017		September 30, 2017		June 30, 2017		March 31, 2017		December 31, 2016		December 31, 2017		December 31, 2016
Reinsurance Segment
Current period - excluding items below	53.1	%	43.5	%	48.2	%	46.1	%	46.9	%	47.6	%	46.1	%
Current period - notable loss events (a)	5.9	%	100.2	%	—	%	—	%	7.9	%	29.1	%	4.5	%
Current period - non-notable loss events (b)	3.7	%	0.3	%	2.2	%	2.2	%	—	%	2.1	%	4.7	%
Change in prior accident years	(8.5	)%	(16.0	)%	(6.1	)%	(13.4	)%	(14.9	)%	(11.1	)%	(13.6	)%
Net loss ratio	54.2	%	128.0	%	44.3	%	34.9	%	39.9	%	67.7	%	41.7	%
Insurance Segment
Current period - excluding items below	73.8	%	75.3	%	66.5	%	71.2	%	65.5	%	71.9	%	64.3	%
Current period - notable loss events (a)	6.3	%	24.2	%	—	%	—	%	7.4	%	8.2	%	2.1	%
Current period - non-notable loss events (b)	(0.7	)%	3.2	%	0.6	%	5.3	%	0.1	%	2.0	%	1.7	%
Change in prior accident years	(5.9	)%	(7.8	)%	(7.8	)%	(9.6	)%	(4.5	)%	(7.7	)%	(7.8	)%
Net loss ratio	73.5	%	94.9	%	59.3	%	66.9	%	68.5	%	74.4	%	60.3	%
Asset Management Segment
Current period - excluding items below	19.7	%	11.3	%	7.3	%	8.5	%	3.3	%	11.7	%	6.8	%
Current period - notable loss events (a)	125.4	%	552.0	%	—	%	—	%	24.2	%	214.0	%	9.7	%
Current period - non-notable loss events (b)	3.9	%	1.7	%	—	%	—	%	0.2	%	1.4	%	2.5	%
Change in prior accident years	(3.0	)%	(3.2	)%	(5.7	)%	(5.3	)%	(1.7	)%	(4.2	)%	(1.1	)%
Net loss ratio	146.0	%	561.8	%	1.6	%	3.2	%	26.0	%	222.9	%	17.9	%
Consolidated
Current period - excluding items below	60.3	%	53.9	%	52.6	%	54.1	%	49.8	%	55.1	%	49.9	%
Current period - notable loss events (a)	18.5	%	128.1	%	—	%	—	%	9.7	%	40.6	%	4.0	%
Current period - non-notable loss events (b)	1.5	%	1.9	%	1.2	%	3.4	%	0.1	%	2.0	%	3.1	%
Change in prior accident years	(6.6	)%	(10.4	)%	(6.9	)%	(10.6	)%	(8.7	)%	(8.6	)%	(9.6	)%
Net loss ratio	73.7	%	173.5	%	46.9	%	46.9	%	50.9	%	89.1	%	47.4	%

Notes:

(a) The Company defines a notable loss event as an event whereby consolidated net losses and loss expenses aggregate to a threshold greater than or equal to $30.0 million.

(b) The Company defines a non-notable loss event as an event whereby consolidated net losses and loss expenses aggregate to a threshold greater than or equal to $15.0 million but less than $30.0 million.

28

Validus Holdings, Ltd.

Consolidated Reinsurance Recoverable Analysis

Consolidated Reinsurance Recoverable at December 31, 2017
Categories	Reinsurance Recoverable (a)		%		Top 10 Reinsurers	Rating (b)	Reinsurance Recoverable (a)		%
Top 10 reinsurers	$	1,055,445	82.5	%	Fully collateralized reinsurers	NR	$	459,339	35.9	%
Other reinsurers' balances > $1 million	218,226		17.0	%	Everest Re	A+	128,206		10.0	%
Other reinsurers' balances < $1 million	7,199		0.5	%	Munich Re	AA-	94,180		7.4	%
Total	$	1,280,870	100.0	%	Lloyd's Syndicates	A+	74,277		5.8	%
					Federal Crop Insurance Corporation	(c)	68,745		5.4	%
					Swiss Re	AA-	65,218		5.1	%
					Hannover Re	AA-	53,523		4.2	%
					Qatar Insurance Company	A	50,160		3.9	%
					Transatlantic Re	A+	33,729		2.6	%
					Markel	A	28,068		2.2	%
					Total		$	1,055,445	82.5	%
Consolidated Reinsurance Recoverable at December 31, 2016
Categories	Reinsurance Recoverable (a)		%		Top 10 Reinsurers	Rating (b)	Reinsurance Recoverable (a)		%
Top 10 reinsurers	$	395,308	84.9	%	Lloyd's Syndicates	A+	$	84,419	18.2	%
Other reinsurers' balances > $1 million	66,944		14.4	%	Swiss Re	AA-	84,044		18.1	%
Other reinsurers' balances < $1 million	3,416		0.7	%	Fully collateralized reinsurers	NR	83,088		17.8	%
Total	$	465,668	100.0	%	Hannover Re	AA-	50,603		10.9	%
					Everest Re	A+	36,912		7.9	%
					Munich Re	AA-	18,214		3.9	%
					Transatlantic Re	A+	10,593		2.3	%
					Hamilton Re	A-	10,343		2.2	%
					Toa Re	A+	9,510		2.0	%
					National Indemnity Company	AA+	7,582		1.6	%
					Total		$	395,308	84.9	%

Notes:

(a) Reinsurance Recoverable includes Loss Reserves Recoverable and Paid Losses Recoverable.

(b) 99.2% of Reinsurance Recoverable at December 31, 2017 were from reinsurers rated A- or better by internationally recognized rating agencies or were fully collateralized.

(c) The Company participates in a crop reinsurance program sponsored by the U.S. federal government. The Company remains obligated for amounts ceded in the event that its reinsurers or retrocessionaires do not meet their obligations, except for amounts ceded to the U.S. federal government in the Insurance segment agriculture line of business.

29

Validus Holdings, Ltd.

Consolidated Investment Portfolio Composition and Net Investment Income

Investment portfolio	December 31, 2017			September 30, 2017			June 30, 2017			March 31, 2017			December 31, 2016
Managed investments, cash and cash equivalents and restricted cash
U.S. Government and Government Agency	$	727,397		$	595,694		$	646,436		$	718,025		$	804,126
Non-U.S. Government and Government Agency	312,239			290,538			292,504			258,463			240,791
States, municipalities, political subdivision	201,303			206,667			227,949			229,129			271,830
Agency residential mortgage-backed securities	978,049			828,400			783,006			653,395			679,595
Non-Agency residential mortgage-backed securities	40,373			38,993			26,683			19,382			15,477
U.S. corporate	1,533,395			1,466,739			1,386,484			1,486,882			1,534,508
Non-U.S. corporate	422,249			392,242			379,480			397,989			410,227
Bank loans	442,951			464,464			552,901			567,012			570,399
Asset-backed securities	658,303			522,524			502,056			514,690			526,814
Commercial mortgage-backed securities	312,395			314,221			316,190			318,288			330,932
Total fixed maturities	5,628,654			5,120,482			5,113,689			5,163,255			5,384,699
Total short-term investments	230,011			258,646			255,516			232,955			228,386
Total other investments	355,218			471,300			448,618			443,004			405,712
Investment in investment affiliates	100,137			92,079			103,377			94,697			100,431
Cash and cash equivalents	691,687			961,539			796,476			619,810			415,419
Restricted cash	62,848			51,585			48,101			36,099			15,000
Total managed investments, cash and cash equivalents and restricted cash (a)	7,068,555			6,955,631			6,765,777			6,589,820			6,549,647
Non-managed investments, cash and cash equivalents and restricted cash
Catastrophe bonds	229,694			299,484			304,954			201,961			158,331
Short-term investments	3,151,746			2,734,600			2,615,837			2,552,271			2,567,784
Cash and cash equivalents	63,303			4,091			3,929			4,127			4,557
Restricted cash	331,815			37,818			146,938			56,448			55,956
Total non-managed investments, cash and cash equivalents and restricted cash (a)	3,776,558			3,075,993			3,071,658			2,814,807			2,786,628
Total investments, cash and cash equivalents and restricted cash	$	10,845,113		$	10,031,624		$	9,837,435		$	9,404,627		$	9,336,275
	Three Months Ended															Years Ended
Net investment income	December 31, 2017			September 30, 2017			June 30, 2017			March 31, 2017			December 31, 2016			December 31, 2017			December 31, 2016
Managed investments (a)
Fixed maturities and short-term investments	$	33,894		$	30,823		$	31,212		$	31,671		$	29,875		$	127,600		$	119,085
Other investments	8,098			7,391			7,571			6,870			7,194			29,930			27,860
Cash and cash equivalents and restricted cash	1,513			1,230			716			610			803			4,069			2,939
Securities lending income	2			3			7			13			16			25			55
Total gross investment income	43,507			39,447			39,506			39,164			37,888			161,624			149,939
Investment expenses	(1,898		)	(2,356		)	(1,443		)	(2,972		)	(2,013		)	(8,669		)	(8,221		)
Total managed net investment income	$	41,609		$	37,091		$	38,063		$	36,192		$	35,875		$	152,955		$	141,718
Annualized effective investment yield - managed investments (b)	2.44		%	2.23		%	2.35		%	2.27		%	2.25		%	2.32		%	2.24		%
Non-managed investments
Fixed maturities and short-term investments	$	3,332		$	3,941		$	4,500		$	3,060		$	1,689		$	14,833		$	6,931
Cash and cash equivalents and restricted cash	4,019			3,426			1,678			962			589			10,085			1,736
Total non-managed net investment income	7,351			7,367			6,178			4,022			2,278			24,918			8,667
Total net investment income	$	48,960		$	44,458		$	44,241		$	40,214		$	38,153		$	177,873		$	150,385

Notes:

(a) Managed investments represent assets governed by the Company’s investment policy statement (“IPS”) whereas, non-managed investments represent assets held in support of consolidated AlphaCat variable interest entities which are not governed by the Company’s IPS.

(b) Annualized effective investment yield on managed investments is calculated by dividing managed net investment income by the average balance of the yield bearing assets managed by our portfolio managers (including funds of high grade structured products which are included in other investments, but excluding all other investments). Average assets for the three months ended is the average of the beginning and ending quarter end asset balances. Average assets for the year ended is the average of the beginning, ending and intervening quarter end asset balances. Percentages for the quarter periods are annualized.

30

Validus Holdings, Ltd.

Consolidated Fixed Maturity Portfolio Credit Quality and Maturity Profile

	December 31, 2017				December 31, 2016
Fixed maturities - Credit Quality	Fair Value		%		Fair Value		%
Managed fixed maturities
AAA	$	2,715,074	46.4	%	$	2,405,597	43.4	%
AA	442,397		7.6	%	538,289		9.7	%
A	1,137,795		19.4	%	1,081,949		19.5	%
BBB	828,392		14.1	%	740,861		13.4	%
Total investment grade managed fixed maturities	5,123,658		87.5	%	4,766,696		86.0	%
BB	168,967		2.9	%	213,568		3.9	%
B	237,131		4.0	%	177,737		3.2	%
CCC	18,217		0.3	%	13,371		0.2	%
NR	80,681		1.4	%	213,327		3.8	%
Total non-investment grade managed fixed maturities	504,996		8.6	%	618,003		11.1	%
Total managed fixed maturities	$	5,628,654	96.1	%	$	5,384,699	97.1	%
Non-managed catastrophe bonds
BB	22,110		0.3	%	29,731		0.6	%
B	3,265		0.1	%	4,524		0.1	%
NR	204,319		3.5	%	124,076		2.2	%
Total non-investment grade non-managed catastrophe bonds	229,694		3.9	%	158,331		2.9	%
Total non-managed catastrophe bonds	$	229,694	3.9	%	$	158,331	2.9	%
Total fixed maturities	$	5,858,348	100.0	%	$	5,543,030	100.0	%
	December 31, 2017				December 31, 2016
Fixed maturities - Maturity Profile	Fair Value		%		Fair Value		%
Managed fixed maturities
Due in one year or less	$	343,541	5.9	%	$	346,161	6.2	%
Due after one year through five years	2,513,620		42.8	%	2,933,146		52.9	%
Due after five years through ten years	577,109		9.9	%	426,647		7.7	%
Due after ten years	205,264		3.5	%	125,927		2.3	%
	3,639,534		62.1	%	3,831,881		69.1	%
Asset-backed and mortgage backed securities	1,989,120		34.0	%	1,552,818		28.0	%
Total managed fixed maturities	5,628,654		96.1	%	5,384,699		97.1	%
Non-managed catastrophe bonds
Due in one year or less	88,367		1.5	%	45,418		0.8	%
Due after one year through five years	138,844		2.4	%	111,656		2.1	%
Due after five years through ten years	2,483		—	%	1,257		—	%
Total non-managed catastrophe bonds	$	229,694	3.9	%	$	158,331	2.9	%
Total fixed maturities	$	5,858,348	100.0	%	$	5,543,030	100.0	%

31

Validus Holdings, Ltd.

Top Ten Exposures to Fixed Income Corporate Issuers

	December 31, 2017
Issuer (a)	Fair Value (b)		Rating (c)	% of Managed Investments, Cash and Cash Equivalents and Restricted Cash
JPMorgan Chase & Co.	$	67,079	BBB+	0.9	%
Citigroup Inc.	59,438		BBB+	0.8	%
Morgan Stanley	56,503		BBB+	0.8	%
Bank of America Corp.	51,579		A-	0.7	%
Goldman Sachs Group	49,679		BBB+	0.7	%
Wells Fargo & Company	45,545		A	0.6	%
AT&T Inc.	34,615		BBB+	0.5	%
HSBC Holdings plc	33,972		A	0.5	%
Bank of New York Mellon Corp.	32,592		A	0.5	%
Capital One Financial Corporation	29,145		BBB+	0.4	%
Total	$	460,147		6.4	%

Notes:

(a) Issuers exclude government-backed, government-sponsored enterprises and cash and cash equivalents.

(b) Credit exposures represent only direct exposure to fixed maturities and short-term investments of the parent issuer and its major subsidiaries. These exposures exclude asset and mortgage backed securities that were issued, sponsored or serviced by the parent.

(c) Investment ratings are the median of Moody's, Standard & Poor's and Fitch, presented in Standard & Poor's equivalent rating. For investments where three ratings are unavailable, the lower of the ratings shall apply, presented in Standard & Poor's equivalent rating.

32

Validus Holdings, Ltd.

Capitalization

Capitalization	December 31, 2017			September 30, 2017			June 30, 2017			March 31, 2017			December 31, 2016
Senior Notes (a)	$	245,564		$	245,513		$	245,463		$	245,412		$	245,362
Junior Subordinated Deferrable Debentures (JSDs) (a)	289,800			289,800			289,800			289,800			289,800
Flagstone Junior Subordinated Deferrable Debentures (JSDs) (a)	249,358			249,110			248,600			247,602			247,426
Total debt	784,722			784,423			783,863			782,814			782,588
Redeemable noncontrolling interests	1,004,094			1,133,880			1,251,660			1,657,630			1,528,001
Preferred shares, liquidation value (a)	400,000			400,000			400,000			150,000			$	150,000
Ordinary shares, capital and surplus available to Validus common shareholders	3,517,264			3,554,717			3,831,355			3,784,329			3,711,507
Accumulated other comprehensive loss	(22,192		)	(18,430		)	(19,924		)	(22,453		)	(23,216		)
Noncontrolling interests	16,718			78,947			415,658			330,597			165,977
Total shareholders' equity	$	3,911,790		$	4,015,234		$	4,627,089		$	4,242,473		$	4,004,268
Total capitalization (b)	$	5,700,606		$	5,933,537		$	6,662,612		$	6,682,917		$	6,314,857
Total capitalization available to Validus (c)	$	4,679,794		$	4,720,710		$	4,995,294		$	4,694,690		$	4,620,879
Debt to total capitalization	13.8		%	13.2		%	11.8		%	11.7		%	12.4		%
Debt (excluding JSDs) to total capitalization	4.3		%	4.1		%	3.7		%	3.7		%	3.9		%
Debt and preferred shares to total capitalization	20.8		%	20.0		%	17.8		%	14.0		%	14.8		%
Debt to total capitalization available to Validus	16.8		%	16.6		%	15.7		%	16.7		%	16.9		%
Debt (excluding JSDs) to total capitalization available to Validus	5.2		%	5.2		%	4.9		%	5.2		%	5.3		%
Debt and preferred shares to total capitalization available to Validus	25.3		%	25.1		%	23.7		%	19.9		%	20.2		%

Notes:

(a) For further information regarding the Company's debt and preferred shares, refer to the Notes to the Consolidated Financial Statements included in the Company's Annual Report on Form 10-K and Quarterly Reports on Form 10-Q.

(b) Total capitalization equals total shareholders' equity plus redeemable noncontrolling interests, Senior Notes and Junior Subordinated Deferrable Debentures.

(c) Total capitalization available to Validus equals total shareholders' equity less noncontrolling interests plus Senior Notes and Junior Subordinated Deferrable Debentures.

33

Validus Holdings, Ltd.

Estimated Exposures to Peak Zone Property Catastrophe Losses - As of January 1, 2018

Probable Maximum Losses by Zone and Peril

		Consolidated (Insurance and Reinsurance Segments) Estimated Net Loss (a)
Zones	Perils	20 year return period		50 year return period		100 year return period		250 year return period		Reinsurance Segment Net Maximum Zonal Aggregate (a)
United States	Hurricane	$	259,970	$	308,684	$	335,490	$	545,121	$	1,694,259
California	Earthquake	49,085		195,133		287,734		322,762		1,444,727
Europe	Windstorm	93,276		213,719		268,337		456,383		1,374,612
Japan	Earthquake	57,124		130,705		208,205		295,699		955,949
Japan	Typhoon	66,129		134,493		219,350		256,136		843,280

Notes:

(a) Net probable maximum losses and maximum zonal aggregates include Validus' share of the Asset Management segment limits.

Net loss estimates and zonal aggregates are before income tax, net of reinstatement premiums, and net of reinsurance and retrocessional recoveries.  The estimates set forth above are based on an Occurrence basis on assumptions that are inherently subject to significant uncertainties and contingencies. These uncertainties  and contingencies can affect actual losses and could cause actual losses to differ materially from those expressed above. In particular, modeled loss estimates do not necessarily accurately predict actual losses, and may significantly mis-estimate actual losses. Such estimates, therefore, should not be considered as a representation of actual losses.

The Company has developed the estimates of losses expected from certain catastrophes for its portfolio of property, marine, workers’ compensation, and personal accident contracts using commercially available catastrophe models such as RMS, AIR and EQECAT, which are applied and adjusted by the Company. These estimates include assumptions regarding the location, size and magnitude of an event, the frequency of events, the construction type and damageability of property in a zone, policy terms and conditions and the cost of rebuilding property in a zone, among other assumptions.  These assumptions will evolve following any actual event. Accordingly, if the estimates and assumptions that are entered into the risk model are incorrect, or if the risk model proves to be an inaccurate forecasting tool, the losses the Company might incur from an actual catastrophe could be materially higher than its expectation of losses generated from modeled catastrophe scenarios. In addition, many risks such as second-event covers, aggregate excess of loss, or attritional loss components cannot be fully evaluated using the vendor models.  Further, the Company cannot assure that such third party models are free of defects in the modeling logic or in the software code.

Investors should not rely on the information set forth in this presentation when considering investment in the Company. The information contained in this presentation has not been audited nor has it been subject to independent verification.  The estimates set forth above speak only as of the date of this presentation and the Company undertakes no obligation to update or revise such information to reflect the occurrence of future events, including, but not limited to, the composition of the Company's business. The events presented reflect a specific set of proscribed calculations and do not necessarily reflect all events that may impact the Company.

34

Validus Holdings, Ltd.

Estimated Exposures to Specified Loss Scenarios - As of July 1, 2017

Consolidated Realistic Disaster Scenarios ("RDS")

Type	Catastrophe Scenarios	Description	Estimated Consolidated Net Loss (in millions of U.S. dollars)		% of latest 12 Months Consolidated Net Premiums Earned
Marine	Loss of major complex	Total loss to all platforms and bridge links of a major oil complex	$	173.3	6.7	%
Marine	Major cruise vessel incident	U.S.-owned cruise vessel sunk or severely damaged	147.3		5.7	%
Marine	Marine collision	Fully laden tanker collides with a cruise vessel in U.S. waters	111.6		4.3	%
Political Risks	South East Asia	Chinese economy has a "hard landing" with sharp fall in growth rates; regional contagion	177.4		6.9	%
Political Risks	Russia	The Russian corporate sector struggles to deal with the effects of crashing commodity and stock prices	62.2		2.4	%
Political Risks	Turkey	Severe economic crisis in Turkey due to political upheaval	50.1		1.9	%
Political Risks	Nigeria	Severe economic, political and social crisis in Nigeria leads to widespread civil unrest	49.8		1.9	%
Political Risks	Middle East	U.S. and Iran escalate into military confrontation; regional contagion	88.2		3.4	%
Aviation	Aviation collision	Collision of two aircraft over a major city	34.0		1.3	%
Satellite	Solar flare	Large single or sequence of proton flares results in loss to all satellites in synchronous orbit	54.7		2.1	%
Satellite	Generic defect	Undetected defect in a number of operational satellites causing major loss	29.4		1.1	%
Terrorism	Rockefeller Center	Midtown Manhattan suffers a 2-tonne conventional bomb blast	96.2		3.7	%
Terrorism	One World Trade Center	Lower Manhattan suffers a 2-tonne conventional bomb blast	45.3		1.8	%
Liability	Professional lines	Failure or collapse of a major corporation	42.4		1.6	%
Liability	Professional lines	U.K. pensions mis-selling	19.1		0.7	%
Cyber	Major data security breach	Simultaneous cyber-attacks on organizations within one industrial sector; loss of customer data	74.6		2.9	%

The Company has presented the Company Realistic Disaster Scenarios for non-natural catastrophe events. Twice yearly, Lloyd's syndicates' including the Company's Syndicate 1183 are required to provide details of their potential exposures to specific disaster scenarios. Lloyd’s makes its updated Realistic Disaster Scenarios (RDS) guidance available to the market annually. The RDS scenario specification document for 2017 can be accessed at the RDS part of the Lloyd's public website: http://www.lloyds.com/the-market/tools-and-resources/research/exposure-management/realistic-disaster-scenarios.

The Consolidated Net Premiums Earned used in the calculation represent the latest 12 months of net premiums earned up to December 31, 2017.

Modeling catastrophe threat scenarios is a complex exercise involving numerous variables and is inherently subject to significant uncertainties and contingencies. These uncertainties and contingencies can affect actual losses and could cause actual losses incurred by the Company to differ materially from those expressed above. Should an event occur, the modeled outcomes may prove inadequate, possibly materially so. This may occur for a number of reasons including, legal requirements, model deficiency, non-modeled risks or data inaccuracies.

A modeled outcome of net loss from a single event also relies in significant part on the reinsurance and retrocession arrangements in place, or expected to be in place at the time of the analysis, and may change during the year. Modeled outcomes assume that the reinsurance and retrocession in place responds as expected with minimal reinsurance failure or dispute. Reinsurance is purchased to match the original exposure as far as possible, but it is possible for there to be a mismatch or gap in cover which could result in higher than modeled losses to the Company. In addition, many parts of the reinsurance program are purchased with limited reinstatements and, therefore, the number of claims or events which may be recovered from second or subsequent events is limited. It should also be noted that renewal dates of the reinsurance program do not necessarily coincide with those of the inwards business written. Where original business is not protected by risks attaching reinsurance or retrocession programs, the programs could expire resulting in an increase in the possible net loss retained by the Company.

Investors should not rely on the information set forth in this presentation when considering investment in the Company. The information contained in this presentation has not been audited nor has it been subject to independent verification. The estimates set forth above speak only as of the date of this presentation and the Company undertakes no obligation to update or revise such information to reflect the occurrence of future events. The events presented reflect a specific set of prescribed calculations and do not necessarily reflect all events that may impact the Company.

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