Exhibit 99.1

Contacts:
Investors:		Media:
Validus Holdings, Ltd.		Jamie Tully/Brian Shiver/
Jon Levenson, Senior Vice President		Jonathan Doorley
+1-441-278-9000		Sard Verbinnen & Co.
Jon.Levenson@validusholdings.com		+1-212-687-8080

VALIDUS ANNOUNCES FOURTH QUARTER 2010 NET OPERATING INCOME OF $156.4 MILLION
AND ANNUALIZED NET OPERATING RETURN ON AVERAGE EQUITY OF 17.2%

Diluted Operating Earnings Per Share of $1.40

Diluted Book Value Per Share of $32.98 at December 31, 2010

     Pembroke, Bermuda, February 10, 2011 — Validus Holdings, Ltd. (“Validus” or the “Company”) (NYSE: VR) today reported net income of $102.7 million, or $0.92 per diluted common share for the three months ended December 31, 2010, compared with net income of $165.8 million, or $1.23 per diluted common share, for the three months ended December 31, 2009. Net income for the year ended December 31, 2010 was $402.6 million, or $3.34 per diluted common share compared with $897.4 million, or $9.24 per diluted common share, for the year ended December 31, 2009.

     Net operating income for the three months ended December 31, 2010 was $156.4 million, or $1.40 per diluted share, compared with net operating income of $176.9 million, or $1.31 per diluted common share, for the three months ended December 31, 2009. Net operating income for the year ended December 31, 2010 was $322.8 million, or $2.68 per diluted common share, compared with net operating income of $533.3 million, or $5.49 per diluted common share, for the year ended December 31, 2009.

     Net operating income, a non-GAAP financial measure, is defined as net income excluding net realized and unrealized gains or losses on investments, foreign exchange gains and losses and non-recurring items. Reconciliations of this measure to net income, the most directly comparable GAAP measure, are presented at the end of this release.

     In relation to the fourth quarter and the year ended December 31, 2010 results, Ed Noonan, Chairman and Chief Executive Officer of Validus commented: “Our fourth quarter net income of $102.7 million brings our full year 2010 net income to $402.6 million. The worldwide reinsurance market absorbed multiple significant loss events in 2010, including earthquakes in Chile and New Zealand, flooding and severe weather in Australia, and Deepwater Horizon, among others. With all of this, Validus increased book value per share plus dividends by 14.1% during 2010. After five full years of operations, Validus has grown diluted book value per share plus dividends at a compounded annual rate of 15.9% and generated cumulative net income of $1.94 billion. We have grown our Company into a global leader in short-tail lines of insurance and reinsurance while rewarding shareholders with $1.19 billion of dividends and share repurchases.”

     During the January renewal season, the Validus Re segment underwrote $525.3 million in gross premiums written, a decrease of 8.5% from the prior year period. This renewal data does not include Talbot’s operations as its business is distributed relatively evenly throughout the year.

Below is a table outlining the Validus Re segment’s January 2011 reinsurance renewals.

		January 2011 Gross Premiums Written — Validus Re segment (unaudited)
		U.S.				International
		Property				Property				Marine				Specialty				Total
		(U.S. $ millions)
2011		$	188.0			$	129.9			$	157.5			$	49.9			$	525.3
2010			213.3				160.4				146.3				54.3				574.3
% (Decrease) Increase			(11.9	)%			(19.0	)%			7.7	%			(8.1	)%			(8.5	)%

     Chairman and Chief Executive Officer Ed Noonan commented on 2011 business conditions: “As we approached the January 2011 renewal season, we expected competitive market conditions. Our approach was to deploy our significant capacity where pricing warranted it, and to seek out clients where our ability to generate customized solutions brought additional value we could get paid for. In the U.S., we grew our Cat XOL premium and decreased proportional business. We decreased our International Property business as market conditions dictated. In the aftermath of 2010’s Deepwater Horizon loss, we saw additional opportunities and rate increases in Marine. Within Specialty, we grew our terrorism business among other sub-classes.”

     Highlights for the fourth quarter include the following:

•

Gross premiums written for the three months ended December 31, 2010 were $258.7 million compared to $255.3 million for the three months ended December 31, 2009, an increase of $3.4 million, or 1.3%.

•

Net premiums earned for the three months ended December 31, 2010 were $432.8 million compared to $427.9 million for the three months ended December 31, 2009, an increase of $4.9 million, or 1.1%.

•

Underwriting income for the three months ended December 31, 2010 was $139.7 million compared to $153.6 million for the three months ended December 31, 2009, a decrease of $13.9 million, or 9.1%.

•

Combined ratio of 67.7% for the three months ended December 31, 2010, which included $30.6 million of favorable prior year loss reserve development, benefiting the loss ratio by 7.1 percentage points, compared to a combined ratio of 64.1% for the three months ended December 31, 2009, which included $48.7 million of favorable prior year loss reserve development, benefiting the loss ratio by 11.4 percentage points.

•

Net operating income for the three months ended December 31, 2010 of $156.4 million compared to net operating income of $176.9 million for the three months ended December 31, 2009, a decrease of $20.6 million, or 11.6%, reflecting decreased underwriting and investment income.

•

Net income for the three months ended December 31, 2010 was $102.7 million compared to net income of $165.8 million for the three months ended December 31, 2009, a decrease of $63.1 million, or 38.1%, reflecting a decrease in net operating income and an increase in net realized and unrealized losses on investments.

•

Annualized return on average equity of 11.3% and annualized net operating return on average equity of 17.2%.

Validus Holdings, Ltd. 29 Richmond Road, Pembroke, Bermuda HM08
Tel: 441.278.9000 Fax: 441.278.9009
www.validusholdings.com

     Highlights for the year ended December 31, 2010 include the following:

•

Gross premiums written for the year ended December 31, 2010 were $1,990.6 million compared to $1,621.2 million for the year ended December 31, 2009, an increase of $369.3 million, or 22.8%.

•

Net premiums earned for the year ended December 31, 2010 were $1,761.1 million, compared to $1,449.6 million for the year ended December 31, 2009, an increase of $311.5 million, or 21.5%.

•

Combined ratio of 86.2% for the year ended December 31, 2010, which included $156.6 million of favorable prior year loss reserve development, benefiting the loss ratio by 8.9 percentage points, compared to a combined ratio of 68.9% for the year ended December 31, 2009, which included $102.1 million of favorable prior year loss reserve development, benefitting the loss ratio by 7.0 percentage points.

•

Net operating income for the year ended December 31, 2010 of $322.8 million compared to net operating income of $533.3 million for the year ended December 31, 2009, a decrease of $210.5 million, or 39.5%, reflecting decreased underwriting income.

•

Net income for the year ended December 31, 2010 was $402.6 million compared to net income of $897.4 million for the year ended December 31, 2009, a decrease of $494.8 million, or 55.1%, due to the significant non-recurring gain on bargain purchase, net of expenses of $287.1 million relating to the IPC Acquisition in 2009.

     For the three months ended December 31, 2010, the Company incurred $51.8 million from the notable loss events described below, which represented 12.0 percentage points of the fourth quarter loss ratio, excluding reserve for potential development on 2010 notable loss events. Net of ($1.6) million of reinstatement premiums, the effect of these events on net income was $53.4 million. For the three months ended December 31, 2009, the Company incurred $5.7 million from notable loss events, which represented 1.3 percentage point of the loss ratio. The Company’s loss ratio, excluding prior year development and notable loss events, for the three months ended December 31, 2010 and 2009 were 32.3% and 41.2%, respectively.

				Three months ended December 31, 2010
Fourth Quarter 2010 Notable Loss Events (1)				Validus Re								Talbot								Total
				Losses								Losses and								Losses and
				and Loss								Loss								Loss
				Expenses								Expenses								Expenses
(Dollars in thousands)		Description		(2)				% of NPE				(2)				% of NPE				(2)				% of NPE
Queensland floods		Flood		$	10,000				4.0	%		$	15,000				8.0	%		$	25,000				5.8	%
Political violence		Terror attack			12,500				5.1	%			—				—				12,500				2.9	%
Satellite loss		Failure			5,804				2.4	%			2,982				1.6	%			8,786				2.0	%
Financial institution		Investment house failure			—				—				5,487				3.0	%			5,487				1.3	%
Total				$	28,304				11.5	%		$	23,469				12.6	%		$	51,773				12.0	%

Validus Holdings, Ltd. 29 Richmond Road, Pembroke, Bermuda HM08
Tel: 441.278.9000 Fax: 441.278.9009
www.validusholdings.com

				Three months ended December 31, 2009
Fourth Quarter 2009 Notable Loss Events				Validus Re								Talbot								Total
				Losses and								Losses and								Losses and
				Loss								Loss								Loss
				Expenses								Expenses								Expenses
(Dollars in thousands)		Description		(2)				% of NPE				(2)				% of NPE				(2)				% of NPE
Dublin floods		Flood		$	5,732				2.2	%		$	—				—			$	5,732				1.3	%
Total				$	5,732				2.2	%		$	—				—			$	5,732				1.3	%

     Gross premiums written for the three months ended December 31, 2010 were $34.0 million compared to $33.7 million for the three months ended December 31, 2009, an increase of $0.3 million, or 0.9%. Gross premiums written for the three months ended December 31, 2010 included $17.3 million of property premiums, $4.2 million of marine premiums and $12.5 million of specialty premiums compared to $21.2 million of property premiums, ($1.1) million of marine premiums and $13.6 million of specialty premiums in the three months ended December 31, 2009.

     Net premiums earned for the three months ended December 31, 2010 were $246.3 million compared to $257.6 million for the three months ended December 31, 2009, a decrease of $11.3 million, or 4.4%.

     The combined ratio for the three months ended December 31, 2010 was 42.1% compared to 40.2% for the three months ended December 31, 2009, an increase of 1.9 percentage points.

     The loss ratio for the three months ended December 31, 2010 was 20.2% compared to 17.1% for the three months ended December 31, 2009, an increase of 3.1 percentage points, due primarily to notable loss events in the three months ended December 31, 2010, which added 11.5 percentage points to the loss ratio. The loss ratio for the three months ended December 31, 2010 included favorable prior year loss reserve development of $22.1 million, benefiting the loss ratio by 9.0 percentage points. The loss ratio for the three months ended December 31, 2009 included favorable prior year loss reserve development of $28.9 million, benefiting the loss ratio by 11.2%.

     Gross premiums written for the year ended December 31, 2010 were $1,101.2 million compared to $768.1 million for the year ended December 31, 2009, an increase of $333.2 million, or 43.4%. Gross premiums written for the year ended December 31, 2010 included $790.6 million of property premiums, $227.1 million of marine premiums and $83.5 million of specialty premiums compared to $526.4 million of property premiums, $152.9 million of marine premiums and $88.8 million of specialty premiums in the year ended December 31, 2009.

     Net premiums earned for the year ended December 31, 2010 were $1,051.2 million compared to $795.6 million for the year ended December 31, 2009, an increase of $255.7 million, or 32.1%.

Validus Holdings, Ltd. 29 Richmond Road, Pembroke, Bermuda HM08
Tel: 441.278.9000 Fax: 441.278.9009
www.validusholdings.com

     The combined ratio for the year ended December 31, 2010 was 77.5% compared to 48.7% for the year ended December 31, 2009, an increase of 28.8 percentage points.

     The loss ratio for the year ended December 31, 2010 was 57.2% compared to 23.5% for the year ended December 31, 2009, an increase of 33.7 percentage points. The loss ratio for the year ended December 31, 2010 included losses from notable loss events, which represented 40.7 percentage points of the loss ratio. The loss ratio for the year ended December 31, 2010 included favorable prior year loss reserve development of $70.6 million, benefiting the loss ratio by 6.7 percentage points. The loss ratio for the year ended December 31, 2009 included favorable prior year loss reserve development of $53.0 million, benefiting the loss ratio by 6.7%.

     Gross premiums written for the three months ended December 31, 2010 were $238.1 million compared to $229.5 million for the three months ended December 31, 2009, an increase of $8.6 million, or 3.7%. Gross premiums written for the three months ended December 31, 2010 included $58.2 million of property premiums, $68.4 million of marine premiums and $111.5 million of specialty premiums compared to $50.9 million of property premiums, $62.7 million of marine premiums and $115.9 million of specialty premiums in the three months ended December 31, 2009.

     Net premiums earned for the three months ended December 31, 2010 were $186.5 million compared to $170.3 million for the three months ended December 31, 2009, an increase of $16.2 million, or 9.5%.

     The combined ratio for the three months ended December 31, 2010 was 94.1% compared to 93.2% for the three months ended December 31, 2009, an increase of 0.9 percentage points.

     The loss ratio for the three months ended December 31, 2010 was 56.5% compared to 52.2% for the three months ended December 31, 2009, an increase of 4.3 percentage points. For the three months ended December 31, 2010, Talbot incurred $23.5 million of losses attributable to notable loss events, which represented 12.6 percentage points of the loss ratio. The loss ratio for the three months ended December 31, 2010 included favorable prior year loss reserve development of $8.5 million, benefiting the loss ratio by 4.6 percentage points. The loss ratio for the three months ended December 31, 2009 included favorable prior year loss reserve development of $19.8 million, benefiting the loss ratio by 11.7 percentage points.

     Gross premiums written for the year ended December 31, 2010 were $981.1 million compared to $919.9 million for the year ended December 31, 2009, an increase of $61.2 million, or 6.6%. Gross premiums written for the year ended December 31, 2010 included $314.8 million of property premiums, $315.1 million of marine premiums and $351.2 million of specialty premiums compared to $269.6 million of property premiums, $307.4 million of marine premiums and $342.9 million of specialty premiums for the year ended December 31, 2009.

     Net premiums earned for the year ended December 31, 2010 were $709.9 million compared to $654.0 million for the year ended December 31, 2009, an increase of $55.9 million, or 8.5%.

     The combined ratio for the year ended December 31, 2010 was 91.7% compared to 88.7% for the year ended December 31, 2009, an increase of 3.0 percentage points.

     The loss ratio for the year ended December 31, 2010 was 54.4% compared to 51.5% for the year ended December 31, 2009, an increase of 2.9 percentage points. The year ended December 31, 2010 included losses from notable loss events which represented 15.3 percentage points of the loss ratio. The loss ratio for the year ended December 31, 2010, included favorable prior year loss reserve development of $86.0 million, benefiting the loss

Validus Holdings, Ltd. 29 Richmond Road, Pembroke, Bermuda HM08
Tel: 441.278.9000 Fax: 441.278.9009
www.validusholdings.com

     

ratio by 12.1 percentage points. The loss ratio for the year ended December 31, 2009 included favorable prior year loss reserve development of $49.1 million, benefiting the loss ratio by 7.5 percentage points.

     Corporate segment results included executive and board expenses, internal and external audit expenses, interest and costs incurred in connection with the Company’s senior notes and junior subordinated deferrable debentures and other costs relating to the Company as a whole. General and administrative expenses for the three months ended December 31, 2010 were $11.5 million compared to $9.7 million for the three months ended December 31, 2009, an increase of $1.8 million, or 18.9%. Share compensation expenses for the three months ended December 31, 2010 were $3.8 million compared to $4.2 million for the three months ended December 31, 2009, a decrease of $0.4 million, or 10.3%. General and administrative expenses for the year ended December 31, 2010 were $49.6 million compared to $23.5 million for the year ended December 31, 2009, an increase of $26.1 million, or 111.1%. Share compensation expenses for the year ended December 31, 2010 were $14.8 million compared to $12.3 million for the year ended December 31, 2009, an increase of $2.5 million, or 20.5%. During the first quarter of 2010, to better align the Company’s operating and reporting structure with its current strategy, there was a change in the segment structure. This change was to allocate all ‘non-core underwriting’ expenses, predominantly general and administration and stock compensation expenses to the Corporate segment which contributed to the increase.

     Net investment income for the three months ended December 31, 2010 was $31.0 million compared to $35.5 million for the three months ended December 31, 2009, a decrease of $4.5 million, or 12.8%. Net investment income for the year ended December 31, 2010 was $134.1 million compared to $118.8 million for the year ended December 31, 2009, an increase of $15.3 million, or 12.9%. Net investment income increased due primarily to a larger fixed maturity portfolio as a result of the IPC Acquisition.

     Net realized losses on investments for the three months ended December 31, 2010 were ($14.4) million compared to net realized gains of $9.1 million for the three months ended December 31, 2009, a decrease of $23.5 million, or 258.2%. Net realized gains on investments for the year ended December 31, 2010 were $32.5 million compared to net realized losses of ($11.5) million for the year ended December 31, 2009, an increase of $44.0 million, or 381.5%.

     Net unrealized losses on investments for the three months ended December 31, 2010 were ($42.7) million compared to net unrealized losses of ($25.0) million for the three months ended December 31, 2009, a decrease of $17.6 million, or 70.5%. Net unrealized gains on investments for the year ended December 31, 2010 were $46.0 million compared to $84.8 million for the year ended December 31, 2009, a decrease of $38.8 million, or 45.8%.

     Finance expenses for the three months ended December 31, 2010 were $13.8 million compared to $14.4 million for the three months ended December 31, 2009, a decrease of $0.6 million, or 4.3%. Finance expenses for the year ended December 31, 2010 were $55.9 million compared to $44.1 million for the year ended December 31, 2009, an increase of $11.7 million, or 26.6%. This increase primarily related to the interest on the senior notes issued at the beginning of 2010. Finance expenses included interest on the Company’s senior notes and junior subordinated deferrable debentures.

Validus Holdings, Ltd. 29 Richmond Road, Pembroke, Bermuda HM08
Tel: 441.278.9000 Fax: 441.278.9009
www.validusholdings.com

     As at December 31, 2010, shareholders’ equity was $3.5 billion. Diluted book value per common share was $32.98 at December 31, 2010, compared to $32.02 at September 30, 2010. Diluted book value per common share is a non-GAAP financial measure. A reconciliation of this measure to shareholders’ equity is presented at the end of this release.

     Total capitalization at December 31, 2010 was $4.0 billion, including $289.8 million of junior subordinated deferrable debentures and $246.9 million of senior notes.

     A summary of the share repurchases made to date under the Company’s previously announced share repurchase program is as follows:

						Share Repurchase Activity by Quarter
		As at December 31,
Effect of share repurchases:		2009 (cumulative)				March 31, 2010				June 30, 2010				September 30, 2010				December 31, 2010
Aggregate purchase price (1)		$	84,243			$	128,278			$	316,084			$	62,443			$	350,122
Shares repurchased			3,156,871				4,826,600				12,615,123				2,471,673				11,766,618
Average price (1)		$	26.69			$	26.58			$	25.06			$	25.26			$	29.76
Estimated net accretive (dilutive) impact on:
Diluted BV per common share (2)						$	0.10			$	0.66			$	1.00			$	1.41
Diluted EPS — Quarter (3)						$	—			$	0.07			$	0.30			$	0.15

						Share Repurchase Activity Post Year End
		As at December 31,												As at February 9,				Cumulative to Date
Effect of share repurchases:		2010 (cumulative)				January 31, 2011				February 9, 2011				2011				Effect
Aggregate purchase price (1)		$	941,170			$	6,000			$	—			$	6,000			$	947,170
Shares repurchased			34,836,885				195,100				—				195,100				35,031,985
Average price (1)		$	27.02			$	30.75			$	—			$	30.75			$	27.04

Validus Holdings, Ltd. 29 Richmond Road, Pembroke, Bermuda HM08
Tel: 441.278.9000 Fax: 441.278.9009
www.validusholdings.com

     The Company will host a conference call for analysts and investors on February 11, 2011 at 9:00 AM (Eastern) to discuss the fourth quarter and full year 2010 financial results and related matters. The conference call can be accessed via telephone by dialing 1-866-271-0675 (toll-free U.S.) or 1-617-213-8892 (international) and entering the pass code 82588955#. Those who intend to participate in the conference call should register at least ten minutes in advance to ensure access to the call. A telephone replay of the conference call will be available through February 25, 2011 by dialing 1-888-286-8010 (toll-free U.S) or 1-617-801-6888 (international) and entering the pass code 26909135#.

     This conference call will also be available through a live audio webcast accessible through the Investor Relations section of the Company’s website located at www.validusholdings.com. A replay of the webcast will be available at the Investor Relations section of the Company’s website through February 25, 2011. In addition, a financial supplement relating to our financial results for the three months and year ended December 31, 2010 is available in the Investor Relations section of the Company’s website.

     Validus Holdings, Ltd. is a provider of reinsurance and insurance, conducting its operations worldwide through two wholly-owned subsidiaries, Validus Reinsurance, Ltd. (“Validus Re”) and Talbot Holdings Ltd. (“Talbot”). Validus Re is a Bermuda based reinsurer focused on short-tail lines of reinsurance. Talbot is the Bermuda parent of the specialty insurance group primarily operating within the Lloyd’s insurance market through Syndicate 1183.

Validus Holdings, Ltd. 29 Richmond Road, Pembroke, Bermuda HM08
Tel: 441.278.9000 Fax: 441.278.9009
www.validusholdings.com

Validus Holdings, Ltd.
Consolidated Balance Sheets
As at December 31, 2010 and December 31, 2009
(Expressed in thousands of U.S. dollars, except share and per share information)

		December 31,				December 31,
		2010				2009
Assets
Fixed maturities, at fair value (amortized cost: 2010 - $4,772,037; 2009 - $4,870,395)		$	4,823,867			$	4,869,378
Short-term investments, at fair value (amortized cost: 2010 - $273,444; 2009 - $482,632)			273,514				481,766
Other investments, at fair value (amortized cost: 2010 - $18,392; 2009 - $35,941)			21,478				37,615
Cash and cash equivalents			620,740				387,585
Total investments and cash			5,739,599				5,776,344
Premiums receivable			568,761				551,616
Deferred acquisition costs			123,897				112,329
Prepaid reinsurance premiums			71,417				73,164
Securities lending collateral			22,328				90,350
Loss reserves recoverable			283,134				181,765
Paid losses recoverable			27,996				14,782
Income taxes recoverable			1,142				2,043
Intangible assets			118,893				123,055
Goodwill			20,393				20,393
Accrued investment income			33,726				38,077
Other assets			49,592				35,222
Total assets		$	7,060,878			$	7,019,140
Liabilities
Reserve for losses and loss expenses		$	2,035,973			$	1,622,134
Unearned premiums			728,516				724,104
Reinsurance balances payable			63,667				65,414
Securities lending payable			23,093				90,106
Deferred income taxes			24,908				24,508
Net payable for investments purchased			43,896				44,145
Accounts payable and accrued expenses			99,320				127,809
Senior notes payable			246,874				—
Debentures payable			289,800				289,800
Total liabilities			3,556,047				2,988,020
Commitments and contingent liabilities
Shareholders’ equity
Common shares, 571,428,571 authorized, par value $0.175 (Issued: 2010 - 132,838,111; 2009 - 131,616,349; Outstanding: 2010 - 98,001,226; 2009 - 128,459,478)			23,247				23,033
Treasury shares (2010 - 34,836,885; 2009 - 3,156,871)			(6,096	)			(553	)
Additional paid-in-capital			1,860,960				2,675,680
Accumulated other comprehensive (loss)			(5,455	)			(4,851	)
Retained earnings			1,632,175				1,337,811
Total shareholders’ equity			3,504,831				4,031,120
Total liabilities and shareholders’ equity		$	7,060,878			$	7,019,140

Validus Holdings, Ltd. 29 Richmond Road, Pembroke, Bermuda HM08
Tel: 441.278.9000 Fax: 441.278.9009
www.validusholdings.com

Validus Holdings, Ltd.
Consolidated Statements of Operations
For the three months and year ended December 31, 2010 and 2009
(Expressed in thousands of U.S. dollars, except share and per share information)

		Three Months Ended December 31,								Year Ended December 31,
		2010				2009 (1)				2010				2009 (1)
Underwriting income
Gross premiums written		$	258,731			$	255,289			$	1,990,566			$	1,621,241
Reinsurance premiums ceded			(35,376	)			(30,393	)			(229,482	)			(232,883	)
Net premiums written			223,355				224,896				1,761,084				1,388,358
Change in unearned premiums			209,456				203,005				39				61,219
Net premiums earned			432,811				427,901				1,761,123				1,449,577
Underwriting deductions
Losses and loss expenses			155,225				133,020				987,586				523,757
Policy acquisition costs			75,523				72,843				292,899				262,966
General and administrative expenses			54,511				60,253				209,290				185,568
Share compensation expenses			7,871				8,189				28,911				27,037
Total underwriting deductions			293,130				274,305				1,518,686				999,328
Underwriting income		$	139,681			$	153,596			$	242,437			$	450,249
Net investment income			30,962				35,506				134,103				118,773
Other income			552				1,759				5,219				4,634
Finance expenses			(13,786	)			(14,398	)			(55,870	)			(44,130	)
Operating income before taxes			157,409				176,463				325,889				529,526
Tax (expense) benefit			(1,058	)			458				(3,126	)			3,759
Net operating income		$	156,351			$	176,921			$	322,763			$	533,285
Gain on bargain purchase, net of expenses			—				—				—				287,099
Realized gain on repurchase of debentures			—				4,444				—				4,444
Net realized (losses) gains on investments			(14,399	)			9,099				32,498				(11,543	)
Net unrealized (losses) gains on investments			(42,689	)			(25,043	)			45,952				84,796
Foreign exchange gains (losses)			3,424				338				1,351				(674	)
Net income		$	102,687			$	165,759			$	402,564			$	897,407
Selected ratios:
Net premiums written / Gross premiums written			86.3	%			88.1	%			88.5	%			85.6	%
Losses and loss expenses			35.9	%			31.1	%			56.1	%			36.1	%
Policy acquisition costs			17.4	%			17.0	%			16.6	%			18.1	%
General and administrative expenses (2)			14.4	%			16.0	%			13.5	%			14.7	%
Expense ratio			31.8	%			33.0	%			30.1	%			32.8	%
Combined ratio			67.7	%			64.1	%			86.2	%			68.9	%

Validus Holdings, Ltd. 29 Richmond Road, Pembroke, Bermuda HM08
Tel: 441.278.9000 Fax: 441.278.9009
www.validusholdings.com

Validus Holdings, Ltd.
Consolidated Segment Underwriting Income
For the three months and year ended December 31, 2010 and 2009
(Expressed in thousands of U.S. dollars, except share and per share information)

		Three months ended December 31,								Year ended December 31,
		2010				2009 (1)				2010				2009 (1)
Validus Re
Gross premiums written		$	33,986			$	33,694			$	1,101,239			$	768,084
Reinsurance premiums ceded			(399	)			(652	)			(63,147	)			(95,446	)
Net premiums written			33,587				33,042				1,038,092				672,638
Change in unearned premiums			212,737				224,596				13,108				122,912
Net premiums earned			246,324				257,638				1,051,200				795,550
Losses and loss expenses			49,799				44,134				601,610				186,704
Policy acquisition costs			39,299				37,088				160,599				127,433
General and administrative expenses			12,659				19,782				45,617				65,710
Share compensation expenses			1,934				2,590				7,181				7,576
Total underwriting deductions			103,691				103,594				815,007				387,423
Underwriting income		$	142,633			$	154,044			$	236,193			$	408,127
Talbot
Gross premiums written		$	238,100			$	229,548			$	981,073			$	919,906
Reinsurance premiums ceded			(48,332	)			(37,694	)			(258,081	)			(204,186	)
Net premiums written			189,768				191,854				722,992				715,720
Change in unearned premiums			(3,281	)			(21,591	)			(13,069	)			(61,693	)
Net premiums earned			186,487				170,263				709,923				654,027
Losses and loss expenses			105,426				88,886				385,976				337,053
Policy acquisition costs			37,726				37,555				143,769				139,932
General and administrative expenses			30,334				30,787				114,043				96,352
Share compensation expenses			2,142				1,367				6,923				7,171
Total underwriting deductions			175,628				158,595				650,711				580,508
Underwriting income		$	10,859			$	11,668			$	59,212			$	73,519
Corporate & Eliminations
Gross premiums written		$	(13,355	)		$	(7,953	)		$	(91,746	)		$	(66,749	)
Reinsurance premiums ceded			13,355				7,953				91,746				66,749
Net premiums written			—				—				—				—
Change in unearned premiums			—				—				—				—
Net premiums earned			—				—				—				—
Losses and loss expenses			—				—				—				—
Policy acquisition costs			(1,502	)			(1,800	)			(11,469	)			(4,399	)
General and administrative expenses			11,518				9,684				49,630				23,506
Share compensation expenses			3,795				4,232				14,807				12,290
Total underwriting deductions			13,811				12,116				52,968				31,397
Underwriting (loss)		$	(13,811	)		$	(12,116	)		$	(52,968	)		$	(31,397	)
Total underwriting income		$	139,681			$	153,596			$	242,437			$	450,249

Validus Holdings, Ltd. 29 Richmond Road, Pembroke, Bermuda HM08
Tel: 441.278.9000 Fax: 441.278.9009
www.validusholdings.com

Validus Holdings, Ltd.
Non-GAAP Financial Measure Reconciliation
Net Operating Income, Net Operating Income per share
and Annualized Net Operating Return on Average Equity
For the three months and year ended December 31, 2010 and 2009
(Expressed in thousands of U.S. dollars, except share and per share information)

		Three Months Ended December 31,								Year Ended December 31,
		2010				2009				2010				2009
Net income		$	102,687			$	165,759			$	402,564			$	897,407
Adjustments for:
Gain on bargain purchase, net of expenses			—				—				—				(287,099	)
Realized (gain) on repurchase of debentures			—				(4,444	)			—				(4,444	)
Net realized losses (gains) on investments			14,399				(9,099	)			(32,498	)			11,543
Net unrealized losses (gains) on investments			42,689				25,043				(45,952	)			(84,796	)
Foreign exchange (gains) losses			(3,424	)			(338	)			(1,351	)			674
Net operating income			156,351				176,921				322,763				533,285
less: Dividends and distributions declared on outstanding warrants			(1,746	)			(1,590	)			(6,991	)			(6,507	)
Net operating income, adjusted		$	154,605			$	175,331			$	315,772			$	526,778
Net income per share — diluted		$	0.92			$	1.23			$	3.34			$	9.24
Adjustments for:
Gain on bargain purchase, net of expenses			—				—				—				(2.95	)
Realized (gain) on repurchase of debentures			—				(0.03	)			—				(0.05	)
Net realized losses (gains) on investments			0.13				(0.07	)			(0.27	)			0.12
Net unrealized losses (gains) on investments			0.38				0.18				(0.38	)			(0.88	)
Foreign exchange (gains) losses			(0.03	)			—				(0.01	)			0.01
Net operating income per share — diluted		$	1.40			$	1.31			$	2.68			$	5.49
Weighted average number of common shares and common share equivalents			111,316,736				134,794,120				120,630,945				97,168,409
Average shareholders’ equity		$	3,633,058			$	3,998,656			$	3,731,945			$	2,822,200
Annualized net operating return on average equity			17.2	%			17.7	%			8.6	%			18.9	%

Validus Holdings, Ltd. 29 Richmond Road, Pembroke, Bermuda HM08
Tel: 441.278.9000 Fax: 441.278.9009
www.validusholdings.com

Non-GAAP Financial Measure Reconciliation

Diluted Book Value Per Common Share

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

		As at December 31, 2010
														Book Value Per
		Equity Amount				Shares				Exercise Price				Share
Book value per common share
Total shareholders’ equity		$	3,504,831				98,001,226							$	35.76
Diluted book value per common share
Total shareholders’ equity			3,504,831				98,001,226
Assumed exercise of outstanding warrants			139,272				7,934,860			$	17.55
Assumed exercise of outstanding stock options			54,997				2,723,684			$	20.19
Unvested restricted shares			—				3,496,096
Diluted book value per common share		$	3,699,100				112,155,866							$	32.98

		As at December 31, 2009
														Book Value Per
		Equity Amount				Shares				Exercise Price				Share
Book value per common share
Total shareholders’ equity		$	4,031,120				128,459,478							$	31.38
Diluted book value per common share
Total shareholders’ equity			4,031,120				128,459,478
Assumed exercise of outstanding warrants			139,576				7,952,138			$	17.55
Assumed exercise of outstanding stock options			65,159				3,278,015			$	19.88
Unvested restricted shares			—				3,020,651
Diluted book value per common share		$	4,235,855				142,710,282							$	29.68

Validus Holdings, Ltd. 29 Richmond Road, Pembroke, Bermuda HM08
Tel: 441.278.9000 Fax: 441.278.9009
www.validusholdings.com

     This press release may include forward-looking statements, both with respect to the Company and its industry, that reflect our current views with respect to future events and financial performance. Statements that include the words “expect,” “intend,” “plan,” “believe,” “project,” “anticipate,” “will,” “may” and similar statements of a future or forward-looking nature identify forward-looking statements. All forward-looking statements address matters that involve risks and uncertainties, many of which are beyond the Company’s control. Accordingly, there are or will be important factors that could cause actual results to differ materially from those indicated in such statements and, therefore, you should not place undue reliance on any such statements. We believe that these factors include, but are not limited to, the following: 1) unpredictability and severity of catastrophic events; 2) rating agency actions; 3) adequacy of Validus’ risk management and loss limitation methods; 4) cyclicality of demand and pricing in the insurance and reinsurance markets; 5) statutory or regulatory developments including tax policy, reinsurance and other regulatory matters; 6) Validus’ ability to implement its business strategy during “soft” as well as “hard” markets; 7) adequacy of Validus’ loss reserves; 8) continued availability of capital and financing; 9) retention of key personnel; 10) competition; 11) potential loss of business from one or more major insurance or reinsurance brokers; 12) Validus’ ability to implement, successfully and on a timely basis, complex infrastructure, distribution capabilities, systems, procedures and internal controls, and to develop accurate actuarial data to support the business and regulatory and reporting requirements; 13) general economic and market conditions (including inflation, volatility in the credit and capital markets, interest rates and foreign currency exchange rates); 14) the integration of businesses Validus may acquire or new business ventures Validus may start; 15) the effect on Validus’ investment portfolios of changing financial market conditions including inflation, interest rates, liquidity and other factors; 16) acts of terrorism or outbreak of war; and 17) availability of reinsurance and retrocessional coverage; as well as management’s response to any of the 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 the Company on file with or furnished to the Securities and Exchange Commission (“SEC”). Any forward-looking statements made in this press release are qualified by these cautionary statements, and there can be no assurance that the actual results or developments anticipated by Validus will be realized or, even if substantially realized, that they will have the expected consequences to, or effects on, Validus or its business or operations. Except as required by law, the Company undertakes no obligation to update publicly or revise any forward-looking statement, whether as a result of new information, future developments or otherwise.

     In presenting the Company’s results, management has included and discussed certain schedules containing net operating income (loss), net operating income (loss) per share, underwriting income (loss), annualized net operating return on average equity and diluted book value per common share that are not calculated under standards or rules that comprise U.S. GAAP. Such measures are referred to as non-GAAP. Non-GAAP measures may be defined or calculated differently by other companies. These measures should not be viewed as a substitute for those determined in accordance with U.S. GAAP. A reconciliation of net operating income to net income, the most comparable U.S. GAAP financial measure, is presented in the section above entitled “Net Operating Income, Net Operating Income

Validus Holdings, Ltd. 29 Richmond Road, Pembroke, Bermuda HM08
Tel: 441.278.9000 Fax: 441.278.9009
www.validusholdings.com

per share and Annualized Net Operating Return on Average Equity”. A reconciliation of underwriting income to net income, the most comparable U.S. GAAP financial measure, is presented in the “Consolidated Statements of Operations” above. Underwriting income indicates the performance of the Company’s core underwriting function, excluding revenues and expenses. The Company believes the reporting of underwriting income enhances the understanding of our results by highlighting the underlying profitability of the Company’s core insurance and reinsurance business. Underwriting profitability is influenced significantly by earned premium growth, adequacy of the Company’s pricing and loss frequency and severity. Underwriting profitability over time 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. The Company believes that underwriting income provides investors with a valuable measure of profitability derived from underwriting activities.

     Annualized net operating return on average equity is presented in the section above entitled “Net Operating Income, Net Operating Income per share and Annualized Net Operating Return on Average Equity”. A reconciliation of diluted book value per share to book value per share, the most comparable U.S. GAAP financial measure, is presented in the section above entitled “Diluted Book Value Per Share”. Net operating income (loss) is calculated based on net income (loss) excluding net realized gains (losses), net unrealized gains (losses) on investments, gains (losses) arising from translation of non-US$ denominated balances and non-recurring items. Realized gains (losses) from the sale of investments are driven by the timing of the disposition of investments, not by our operating performance. Gains (losses) arising from translation of non-US$ denominated balances are unrelated to our underlying business.

Validus Holdings, Ltd. 29 Richmond Road, Pembroke, Bermuda HM08
Tel: 441.278.9000 Fax: 441.278.9009
www.validusholdings.com