Validus Not Expecting to Report Positive Net Operating Income Due to the Disaster in Japan

Validus Holdings, Ltd. VR today commented on worldwide loss activity occurring in the first quarter of 2011, including the March 11, 2011 earthquake and tsunami in Japan and other loss events occurring during the three month period ended March 31, 2011. March 11, 2011 Tohoku Earthquake. On March 11, 2011, an earthquake with a magnitude of 9.0 on the Richter Scale occurred off the Eastern coast of Japan. The earthquake and subsequent tsunami caused significant loss of life and damage to property. The Company has taken note of information provided by intermediaries and clients, preliminary loss estimates from commercial catastrophe model vendors and conducted an analysis of its exposed insurance and reinsurance contracts as well as the outward reinsurance, retrocession and industry loss warranty protections purchased by the Company. Based on this analysis, the Company currently expects to record loss and loss expenses of $139 million, net of applicable reinstatement premiums, in its first quarter 2011 results of operations from the March 2011 Tohoku Earthquake. First Quarter 2011 Loss Activity. Validus has previously reported on worldwide events that it expects to give rise to insured losses in the first quarter of 2011, including the January floods in Australia, Cyclone Yasi in Australia, civil unrest in Northern Africa and the Middle East, damage to an offshore energy platform and the February 2011 New Zealand earthquake. In early February 2011, Maersk Oil's Gryphon floating production storage and offloading vessel in the North Sea sustained severe damage in heavy storms. Estimates of the ultimate insured loss have continued to increase since the loss event occurred. Given the Company's leading position in the offshore Energy sector, Validus anticipates that its share of this loss event could potentially represent an ultimate loss of up to $51 million and as a result, the Company currently expects to record loss and loss expenses of $51 million, net of applicable reinstatement premiums, in its first quarter 2011 results of operations. After considering the worldwide loss events through March 31, 2011 and the anticipated loss and loss expenses associated with the events cited above, the Company no longer expects to report positive net operating income for the three month period ending March 31, 2011.