Validus Holdings (VR) – NYSE

validus-groupValidus Holdings through its subsidiaries, provides reinsurance coverage in the property, marine and specialty lines markets and insurance coverage in the same markets. The Company conducts its operations worldwide through two wholly owned subsidiaries, Validus Reinsurance, Ltd. (Validus Re) and Talbot Holdings Ltd. (Talbot). It operates in two segments: Validus Re and Talbot. Validus Re underwrites property catastrophe reinsurance, property per risk reinsurance and property pro rata reinsurance. Talbot writes primarily short-tail lines of business. The Company is extending its operations in the United States market through Western World Insurance Group, Inc. (Western World), which is a specialty lines insurance company.

Validus Re

Validus Re, the Company’s principal reinsurance operating subsidiary, operates as a provider of short-tail reinsurance products on a worldwide basis. Property catastrophe reinsurance provides reinsurance for insurance companies’ exposures to an accumulation of property and related losses from separate policies, typically relating to natural disasters or other catastrophic events. Property per risk reinsurance provides reinsurance for insurance companies’ excess retention on individual property and related risks. Property pro rata contracts require that the reinsurer share the premiums, as well as the losses and loss expenses in an agreed proportion with the cedant. Validus Re underwrites reinsurance on marine risks covering damage to or losses of marine vessels and cargo, third-party liability for marine accidents and physical loss and liability from principally offshore energy properties. Validus Re underwrites marine on an excess of loss basis and on a pro rata basis. Validus Re underwrites other lines of business, which include aerospace and aviation, agriculture, terrorism, life and accident & health, financial lines, nuclear, workers’ compensation catastrophe and crisis management.

Talbot

Talbot is the Bermuda parent of a specialty insurance group primarily operating within the Lloyd’s insurance market. It focuses mostly on insurance, as opposed to reinsurance risks, and on specialty lines, such as war, financial institutions, contingency, accident and health. In addition, Talbot provides the Company with access to the Lloyd’s marketplace where Validus Re does not operate. As a London-based insurer, Talbot also writes the majority of its premiums on risks outside the United States. The main sub-classes within property are international and North American direct and facultative contracts, onshore energy, lineslips and binding authorities together with a book of business written on a treaty reinsurance basis.

The main types of business within marine are hull, cargo, energy, marine and energy liabilities, yachts and marinas and other treaty. Hull consists primarily of ocean going vessels and cargo and covers worldwide risks. Energy covers a variety of oil and gas industry risks. Specialty class consists of war (consisting of marine and aviation war, political risks and political violence, including war on land), financial institutions, contingency, accident and health, airlines and aviation treaty. The marine and aviation war account covers physical damage to aircraft and marine vessels caused by acts of war and terrorism.

The accident and health account provides insurance in respect of individuals in both their personal and business activity together with corporations where they have an insurable interest relating to death or disability of employees or those under contract. The aviation account insures airlines, general aviation, aviation hull war and satellites. The main types of covers written under the contingency account are event cancellation and non-appearance business.

The Company competes with ACE Tempest Re, Aspen Insurance Holdings Limited, Allied World Assurance Company Holdings Limited, Alterra Capital Holdings, Ltd., Arch Capital Group Limited, Axis Capital Holdings Limited, Endurance Specialty Holdings Limited, Everest Re Group Limited, Flagstone Reinsurance Holdings Group Limited, Munich Re, PartnerRe Ltd., Platinum Underwriters Holdings Ltd., Renaissance Reinsurance Holdings Ltd., Swiss Re, XL Re, Amlin plc, Catlin Group Limited and Hiscox.


Please note that the Technical Indicators and Fundamental Factors indicated below will change during the day as the market fluctuates.

Technical Indicators:

  • 100% Technical buy signals
  • Trend Spotter buy signal
  • Above its 20, 50 and 100 day moving averages
  • 6 new highs and up 3.26% in the last month
  • Relative Strength Index 71.00%
  • Technical support level at 40.97
  • Recently traded at 41.20 with a 50 day moving average of 39.58

 

Fundamental Factors:
  • Market Cap: $3.58┬áBillion
  • P/E: 8.97
  • EPS: $4.59
  • Dividend yield 2.91%
  • Revenue expected to decrease this year by 6.20% but grow again next year by 7.60%
  • Earnings are predicted to shrink 8.40% this year and shrink again next year by another 1.40% but to increase and compound at an annual rate of 4.68% over the next 5 years
  • Wall Street analysts issued 1 strong buy, 5 buy and 4 hold recommendation on the stock
The best technical trading strategy on this stock has been the 20 – 100 day MACD oscillator.

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