Validus Holdings, Ltd., announced today that it has raised $150million through a private sale of Junior Subordinated DeferrableInterest Debentures as part of a pooled transaction.

"The issuance of hybrid securities is a very cost-competitivesource of long-term capital for Validus," Ed Noonan, chairman andchief executive of the Bermuda-based carrier, said in a statement.The carrier started business with $1 billion in capital.

Validus was one of the so-called "Class of '05" start-ups formedin the aftermath of last year's record storm losses.

In a recent report, London-based Benfield reinsurance brokerssaid Bermuda carriers believe rates will rise well into nextyear.

Benfield said the 2005 start-up reinsurers may have had adisappointing Jan. 1 renewal season, which looks to be reversedthis year. "But the enforcement of reduced underwriting gearingsuggests their contributions to capacity may be modest," the reportsaid.

Some companies may have been holding back capacity inanticipation of a tight June and July renewal season. Othercompanies did not renew contracts deemed potentially unprofitable,despite sometimes vastly increased rate levels and more restrictiveterms and conditions, the report said.

The Validus Deferrable Interest Debentures have a fixed rate ofinterest equal to 9.069 percent per annum through June 15, 2011,and thereafter a floating interest rate of 3-month LIBOR plus 355basis points, reset quarterly.

The Deferrable Interest Debentures mature June 15, 2036, and maybe called at par by the company at any time after June 15,2011.