Exhibit 99.1

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

VALIDUS ANNOUNCES FIRST QUARTER 2011 FINANCIAL RESULTS

Net Loss of ($172.4) Million After Significant Worldwide Catastrophes

Diluted Book Value Per Share of $31.32 at March 31, 2011

     Pembroke, Bermuda, May 5, 2011 — Validus Holdings, Ltd. (“Validus” or the “Company”) (NYSE: VR) today reported a net loss of ($172.4) million, or ($1.78) per diluted common share for the three months ended March 31, 2011, compared to a net loss of ($118.4) million, or ($0.95) per diluted common share, for the three months ended March 31, 2010.

     Net operating (loss) for the three months ended March 31, 2011 was ($165.4) million, or ($1.71) per diluted common share, compared with net operating (loss) of ($136.4) million, or ($1.09) per diluted common share, for the three months ended March 31, 2010.

     Net operating (loss) income, a non-GAAP financial measure, is defined as net (loss) 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 three months ended March 31, 2011 results, Ed Noonan, Chairman and Chief Executive Officer of Validus commented: “Our financial results were materially affected by the numerous worldwide catastrophe losses occurring in the first quarter of 2011. Our diluted book value per share of $31.32 at March 31, 2011 declined by 4.3% after adjusting for the $0.25 per common share dividend paid in the quarter.”

“The significant elevated worldwide loss activity since the beginning of 2010, in conjunction with changes to certain commercial vendors’ catastrophe models, is resulting in improved pricing and demand for catastrophe reinsurance. Given our strong balance sheet, Validus remains in an excellent position to provide substantial capacity to our reinsurance clients.”

First quarter 2011 results

     Highlights for the first quarter include the following:

•

Gross premiums written for the three months ended March 31, 2011 were $849.9 million compared to $870.9 million for the three months ended March 31, 2010, a decrease of $21.0 million, or 2.4%.

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

	•		Net premiums earned for the three months ended March 31, 2011 were $429.5 million compared to $457.7 million for the three months ended March 31, 2010, a decrease of $28.2 million, or 6.2%.
	•		Underwriting loss for the three months ended March 31, 2011 was ($184.5) million compared to a Underwriting loss of ($157.2) million for the three months ended March 31, 2010, an increase of $27.3 million, or 17.4%.
	•		Combined ratio of 143.0% which included $26.5 million of favorable prior year loss reserve development, benefiting the loss ratio by 6.2 percentage points.
	•		Net operating loss for the three months ended March 31, 2011 of ($165.4) million compared to net operating loss of ($136.4) million for the three months ended March 31, 2010, an increase of $29.0 million, or 21.3%, reflecting decreased underwriting and investment income.
	•		Net loss for the three months ended March 31, 2011 was ($172.4) million compared to net loss of ($118.4) million for the three months ended March 31, 2010, an increase of $54.0 million, or 45.6%, reflecting decreased operating results and a $28.2 million increase in net unrealized losses on investments.
	•		Annualized return on average equity of (20.2)% and annualized operating return on average equity of (19.4)%.

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

Notable Loss Events

     For three months ended March 31, 2011, the Company incurred losses and loss expenses of $293.8 million from the notable loss events, which represented 68.4 percentage points of the loss ratio, excluding reserve for potential development on 2011 notable loss events, as described below. Net of $22.7 million of reinstatement premiums, the effect of these events on net income was $271.1 million. For the three months ended March 31, 2010, the Company incurred $323.9 million from notable loss events, which represented 70.8 percentage points of loss ratio, excluding reserve for potential development on 2010 notable loss events, as described below. Net of reinstatement premiums of $17.0 million, the effect of these events on net income was $306.9 million. The Company’s loss ratio, excluding prior year development and notable loss events for the three months ended March 31, 2011 and 2010 was 48.7% and 39.6%, respectively.

						Three months ended March 31, 2011
						(Dollars in thousands)
First Quarter 2011 Notable Loss Events (a)						Validus Re								Talbot								Total
						Net Losses								Net Losses								Net Losses
						and Loss								and Loss								and Loss
Description						Expenses (b)				% of NPE				Expenses (b)				% of NPE				Expenses (b)				% of NPE
Tohoku earthquake		Earthquake				$	101,156				40.1	%		$	47,770				26.9	%		$	148,926				34.7	%
Gryphon Alpha		Mooring failure					42,914				17.0	%			9,520				5.4	%			52,434				12.2	%
Christchurch earthquake		Earthquake					32,381				12.8	%			9,500				5.4	%			41,881				9.8	%
Brisbane floods		Floods					25,023				9.9	%			6,000				3.4	%			31,023				7.2	%
CNRL Horizon		Explosion					12,000				4.8	%			7,500				4.2	%			19,500				4.5	%
Total						$	213,474				84.6	%		$	80,290				45.3	%		$	293,764				68.4	%
						Three months ended March 31, 2010
						(Dollars in thousands)
First Quarter 2010 Notable Loss Events (a)						Validus Re								Talbot								Total
						Net Losses								Net Losses								Net Losses
						and Loss								and Loss								and Loss
Description						Expenses (b)				% of NPE				Expenses (b)				% of NPE				Expenses (b)				% of NPE
Chilean earthquake		Earthquake				$	243,670				85.8	%		$	49,446				28.5	%		$	293,116				64.0	%
Windstorm Xynthia		Windstorm					12,558				4.4	%			—				—				12,558				2.8	%
Melbourne hailstorm		Hailstorm					18,200				6.5	%			—				—				18,200				4.0	%
Total						$	274,428				96.7	%		$	49,446				28.5	%		$	323,874				70.8	%

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

Validus Re Segment Results

     Gross premiums written for the three months ended March 31, 2011 were $611.2 million compared to $640.3 million for the three months ended March 31, 2010, a decrease of $29.1 million, or 4.5%. Gross premiums written for the three months ended March 31, 2011 included $365.3 million of property premiums, $185.0 million of marine premiums and $60.9 million of specialty premiums compared to $412.4 million of property premiums, $170.0 million of marine premiums and $57.9 million of specialty premiums in the three months ended March 31, 2010.

     Net premiums earned for the three months ended March 31, 2011 were $252.3 million compared to $283.9 million for the three months ended March 31, 2010, a decrease of $31.6 million, or 11.1%.

     The combined ratio for the three months ended March 31, 2011 and 2010 was 144.5%.

     The loss ratio for the three months ended March 31, 2011 was 123.1% compared to 122.9% for the three months ended March 31, 2010, an increase of 0.2 percentage points. For the three months ended March 31, 2011, Validus Re incurred $213.5 million of losses attributable to notable loss events, which represented 84.6 percentage points of the loss ratio. The loss ratio for the three months ended March 31, 2011 included favorable prior year loss reserve development of $11.3 million, benefiting the loss ratio by 4.5 percentage points.

Talbot Segment Results

     Gross premiums written for the three months ended March 31, 2011 were $263.1 million compared to $270.5 million for the three months ended March 31, 2010, a decrease of $7.5 million, or 2.8%. Gross premiums written for the three months ended March 31, 2011 included $70.7 million of property premiums, $105.0 million of marine premiums and $87.4 million of specialty premiums compared to $85.9 million of property premiums, $102.9 million of marine premiums and $81.7 million of specialty premiums in the three months ended March 31, 2010.

     Net premiums earned for the three months ended March 31, 2011 were $177.2 million compared to $173.8 million for the three months ended March 31, 2010, an increase of $3.5 million, or 2.0%.

     The combined ratio for the three months ended March 31, 2011 was 132.2% compared to 110.3% for the three months ended March 31, 2010, an increase of 21.9 percentage points.

     The loss ratio for the three months ended March 31, 2011 was 93.5% compared to 74.6% for the three months ended March 31, 2010, an increase of 18.9 percentage points. For the three months ended March 31, 2011, Talbot incurred $80.3 million of losses attributable to notable loss events, which represented 45.3 percentage points of the loss ratio. The loss ratio for the three months ended March 31, 2011 included favorable prior year loss reserve development of $15.2 million, benefiting the loss ratio by 8.6 percentage points.

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

Corporate Segment Results

     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 March 31, 2011 were $9.1 million compared to $11.7 million for the three months ended March 31, 2010, a decrease of $2.6 million, or 22.3%. Share compensation expenses for the three months ended March 31, 2011 were $6.2 million compared to $3.4 million for the three months ended March 31, 2010, an increase of $2.8 million, or 83.7%.

Investments

     Net investment income for the three months ended March 31, 2011 was $30.0 million compared to $34.3 million for the three months ended March 31, 2010, a decrease of $4.3 million, or 12.6%. Net investment income decreased due to falling yields in fixed maturity investments.

     Net realized gains on investments for the three months ended March 31, 2011 were $6.4 million compared to net realized gains of $11.4 million for the three months ended March 31, 2010, a decrease of $5.0 million, or 44.0%.

     Net unrealized losses on investments for the three months ended March 31, 2011 were ($12.8) million compared to net unrealized gains of $15.4 million for the three months ended March 31, 2010, a decrease of $28.2 million, or 183.2%. The net unrealized losses in the three months ended March 31, 2011 were due to increasing interest rates which reduced the value of the fixed income portfolio.

Finance Expenses

     Finance expenses for the three months ended March 31, 2011 were $14.0 million compared to $15.2 million for the three months ended March 31, 2010, a decrease of $1.2 million, or 7.6%. The decrease was primarily driven by a $2.7 million decrease in payments under the Talbot third party FAL facility which was closed as of December 31, 2009. This was offset by a $1.6 million increase in interest in relation to the 2010 Senior Notes which were issued on January 26, 2010 which did not incur a full months interest expense in January 2010. Finance expenses included interest on the Company’s senior notes, junior subordinated deferrable debentures and fees related to the Company’s credit facilities.

Shareholders’ Equity and Capitalization

     As at March 31, 2011, shareholders’ equity was $3.3 billion. Diluted book value per common share was $31.32 at March 31, 2011, compared to $32.98 at December 31, 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 March 31, 2011 was $3.9 billion, including $289.8 million of junior subordinated deferrable debentures and $246.9 million of senior notes.

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

Share Repurchase Program

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

		Share Repurchase Activity
		(Expressed in thousands of U.S. dollars except for share and per share information)
		As at December
		31, 2010																As at March 31,
Effect of share repurchases:		(cumulative)				January				February				March				2011
Aggregate purchase price (a)		$	941,170			$	6,000			$	—			$	—			$	6,000
Shares repurchased			34,836,885				195,100				—				—				195,100
Average price (a)		$	27.02			$	30.75			$	—			$	—			$	30.75
Estimated net accretive (dilutive) impact on:
Diluted BV per common share (b)																		$	1.02
Diluted EPS — Quarter (c)																		$	N/A

		Share Repurchase Activity
		(Expressed in thousands of U.S. dollars except for share and per share information)
		As at March 31,												As at May 3,				Cumulative to Date
Effect of share repurchases:		2011 (cumulative)				April				May				2011				Effect
Aggregate purchase price (a)		$	947,170			$				$				$	—			$	947,170
Shares repurchased			35,031,985												—				35,031,985
Average price (a)		$	27.04			$	—			$	—			$	—			$	27.04

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

Conference Call

     The Company will host a conference call for analysts and investors on May 6, 2011 at 9:00 AM (Eastern) to discuss the first quarter 2011 financial results and related matters. The conference call can be accessed via telephone by dialing 1-866-700-0133 (toll-free U.S.) or 1-617-213-8831 (international) and entering the pass code 54736372#. 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 May 20, 2011 by dialing 1-888-286-8010 (toll-free U.S) or 1-617-801-6888 (international) and entering the pass code 21525842#.

     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 May 20, 2011. In addition, a financial supplement relating to the Company’s financial results for the three months ended March 31, 2011 is available in the Investor Relations section of the Company’s website.

About Validus Holdings, Ltd.

     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 March 31, 2011 (unaudited) and December 31, 2010
(Expressed in thousands of U.S. dollars, except share and per share information)

		March 31,				December 31,
		2011				2010
		(unaudited)
Assets
Fixed maturities, at fair value (amortized cost: 2011 -$4,544,110; 2010 - $4,772,037)		$	4,589,849			$	4,823,867
Short-term investments, at fair value (amortized cost: 2011 - $565,600; 2010 - $273,444)			565,620				273,514
Other investments, at fair value (amortized cost: 2011 -$16,089; 2010 - $18,392)			19,772				21,478
Cash and cash equivalents			717,444				620,740
Total investments and cash			5,892,685				5,739,599
Premiums receivable			916,012				568,761
Deferred acquisition costs			174,361				123,897
Prepaid reinsurance premiums			115,522				71,417
Securities lending collateral			33,143				22,328
Loss reserves recoverable			453,701				283,134
Paid losses recoverable			26,483				27,996
Income taxes recoverable			876				1,142
Intangible assets			117,853				118,893
Goodwill			20,393				20,393
Accrued investment income			33,282				33,726
Other assets			41,379				49,592
Total assets		$	7,825,690			$	7,060,878
Liabilities
Reserve for losses and loss expenses		$	2,534,415			$	2,035,973
Unearned premiums			1,083,164				728,516
Reinsurance balances payable			157,645				63,667
Securities lending payable			33,878				23,093
Deferred income taxes			22,705				24,908
Net payable for investments purchased			59,671				43,896
Accounts payable and accrued expenses			82,190				99,320
Senior notes payable			246,901				246,874
Debentures payable			289,800				289,800
Total liabilities			4,510,369				3,556,047
Commitments and contingent liabilities
Shareholders’ equity
Common shares, 571,428,571 authorized, par value $0.175 (Issued: 2011 - 133,320,162;
2010 - 132,838,111; Outstanding: 2011 - 98,288,177; 2010 - 98,001,226)			23,331				23,247
Treasury shares (2011 - 35,031,985; 2010 - 34,836,885)			(6,131	)			(6,096	)
Additional paid-in-capital			1,870,104				1,860,960
Accumulated other comprehensive (loss)			(4,498	)			(5,455	)
Retained earnings			1,432,515				1,632,175
Total shareholders’ equity			3,315,321				3,504,831
Total liabilities and shareholders’ equity		$	7,825,690			$	7,060,878

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 ended March 31, 2011 and 2010 (unaudited)
(Expressed in thousands of U.S. dollars, except share and per share information)

		Three Months Ended March 31,
		(unaudited)
		2011				2010
Underwriting income
Gross premiums written		$	849,896			$	870,934
Reinsurance premiums ceded			(109,820	)			(90,739	)
Net premiums written			740,076				780,195
Change in unearned premiums			(310,543	)			(322,501	)
Net premiums earned			429,533				457,694
Underwriting deductions
Losses and loss expenses			476,198				478,531
Policy acquisition costs			77,296				76,176
General and administrative expenses			48,477				53,569
Share compensation expenses			12,049				6,576
Total underwriting deductions			614,020				614,852
Underwriting (loss)		$	(184,487	)		$	(157,158	)
Net investment income			29,975				34,299
Other income			1,606				888
Finance expenses			(14,001	)			(15,151	)
Operating (loss) before taxes			(166,907	)			(137,122	)
Tax benefit			1,459				697
Net operating (loss)		$	(165,448	)			(136,425	)
Net realized gains on investments			6,379				11,398
Net unrealized (losses) gains on investments			(12,828	)			15,413
Foreign exchange (losses)			(467	)			(8,764	)
Net (loss)		$	(172,364	)		$	(118,378	)
Selected ratios:
Net premiums written / Gross premiums written			87.1	%			89.6	%
Losses and loss expenses			110.9	%			104.6	%
Policy acquisition costs			18.0	%			16.6	%
General and administrative expenses			14.1	%			13.1	%
Expense ratio			32.1	%			29.7	%
Combined ratio			143.0	%			134.3	%

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 (Loss)
For the three months ended March 31, 2011 and 2010 (unaudited)
(Expressed in thousands of U.S. dollars, except share and per share information)

		Three months ended March 31,
		(unaudited)
		2011				2010
Validus Re
Gross premiums written		$	611,238			$	640,295
Reinsurance premiums ceded			(46,805	)			(13,110	)
Net premiums written			564,433				627,185
Change in unearned premiums			(312,124	)			(343,264	)
Net premiums earned			252,309				283,921
Losses and loss expenses			310,544				348,920
Policy acquisition costs			40,066				43,503
General and administrative expenses			10,657				16,312
Share compensation expenses			3,105				1,629
Total underwriting deductions			364,372				410,364
Underwriting (loss)			(112,063	)			(126,443	)
Talbot
Gross premiums written		$	263,057			$	270,541
Reinsurance premiums ceded			(87,414	)			(117,531	)
Net premiums written			175,643				153,010
Change in unearned premiums			1,581				20,763
Net premiums earned			177,224				173,773
Losses and loss expenses			165,654				129,611
Policy acquisition costs			37,216				34,945
General and administrative expenses			28,722				25,548
Share compensation expenses			2,719				1,559
Total underwriting deductions			234,311				191,663
Underwriting (loss)			(57,087	)			(17,890	)
Corporate & Eliminations
Gross premiums written		$	(24,399	)		$	(39,902	)
Reinsurance premiums ceded			24,399				39,902
Net premiums written			—				—
Change in unearned premiums			—				—
Net premiums earned			—				—
Losses and loss expenses			—				—
Policy acquisition costs			14				(2,272	)
General and administrative expenses			9,098				11,709
Share compensation expenses			6,225				3,388
Total underwriting deductions			15,337				12,825
Underwriting (loss)			(15,337	)			(12,825	)
.
Total underwriting (loss)		$	(184,487	)		$	(157,158	)

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 (Loss), Net Operating Income (Loss) per
share, and Annualized Net Operating Return on Average Equity
For the three months ended March 31, 2011 and 2010 (unaudited)
(Expressed in thousands of U.S. dollars, except share and per share information)

		Three months ended
		(unaudited)
		March 31,				March 31,
		2011				2010
Net (loss)		$	(172,364	)		$	(118,378	)
Adjustments for:
Net realized (gains) on investments			(6,379	)			(11,398	)
Net unrealized losses (gains) on investments			12,828				(15,413	)
Foreign exchange losses			467				8,764
Net operating (loss)			(165,448	)			(136,425	)
less: Dividends and distributions
declared on outstanding warrants			(1,984	)			(1,749	)
Net operating (loss), adjusted		$	(167,432	)		$	(138,174	)
Net (loss) per share — diluted		$	(1.78	)		$	(0.95	)
Adjustments for:
Net realized (gains) on investments			(0.06	)			(0.09	)
Net unrealized losses (gains) on investments			0.13				(0.12	)
Foreign exchange losses			—				0.07
Net operating (loss) per share — diluted		$	(1.71	)		$	(1.09	)
Weighted average number of common shares and common share equivalents			97,944,340				126,633,277
Average shareholders’ equity		$	3,410,076			$	3,895,343
Annualized net operating return on average equity			(19.4	)%			(14.0	)%

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
Diluted Book Value Per Common Share
As at March 31, 2011 (unaudited) and December 31, 2010
(Expressed in thousands of U.S. dollars, except share and per share information)

		As at March 31, 2011
		(unaudited)
														Book Value Per
		Equity Amount				Shares				Exercise Price				Share
Book value per common share
Total shareholders’ equity		$	3,315,321				98,288,177							$	33.73
Diluted book value per common share
Total shareholders’ equity			3,315,321				98,288,177
Assumed exercise of outstanding warrants			139,272				7,934,860			$	17.55
Assumed exercise of outstanding stock options			50,571				2,521,975			$	20.05
Unvested restricted shares			—				3,177,751
Diluted book value per common share		$	3,505,164				111,922,763							$	31.32

		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

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

Cautionary Note Regarding Forward-Looking Statements

     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.

Non-GAAP Financial Measures

     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 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 such as net investment income (loss), other income, finance expenses, net realized

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

and unrealized gains (losses) on investments, foreign exchange gains (losses) and gain on bargain purchase, net of 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