NU Online News Service, Nov. 6, 12:12 p.m.EDT

Bermuda-based reinsurer Validus Holdings, Ltd. reported thirdquarter net income of $499 million after a prior year loss of $126million with a combined ratio that is 55 points better than lastyear.

The results translated into earnings per share of $5.21 comparedto negative $1.71 last year.

The benign catastrophe season spelled a 55.6 point improvementin the company's combined ratio to 66.7 for the third quarter.

Third quarter revenues for the company, which owns specialtyinsurer Talbot and recently completed a deal to acquire IPC ReHoldings, grew by 150 percent, or $455 million, to $759 million forthe first three months of the year.

For the nine months, net income results improved from $16million or 14-cents a share, last year to $732 million or $8.65 ashare this year. Revenues increased 57 percent, or $538 million, to$1.48 billion. The combined ratio for the period improved by 22.2points to 70.9.

The company also announced that it will buy back $400 million ofits common stock.

Validus' Chairman and Chief Executive Officer, Ed Noonan saidduring a conference call with investment analysts that the companyhas "deliberately" avoided the price competition in the UnitedStates commercial insurance market. That strategy has allowed itsspecialty insurer, Talbot, to get rate for its product producing arange of results from flat rates for terror and war risk coverageto rate increases for the energy sector in the mid-teens, hesaid.

He said where other reinsurers are just now positioningthemselves for some markets, such as property and marine, thecompany is already there.

"When the U.S. insurance market comes to its senses, we will beable to capitalize on [those lines] as well," he remarked.

About the company's future prospects and the current insurancemarket, he said, "I've never felt as comfortable or so in controlof our destiny as I do in this point of time heading into a mixedenvironment."

That future includes the integration of IPC Re that he said willbe a smooth transition without complication.

The deal, completed in the beginning of September, spelled theloss of 16 jobs for IPC employees including senior management andall underwriters. The company said it will keep all 30 staffmembers on until Dec. 31 to make them eligible for bonuses.

Validus acquired IPC for $1.6 billion after a bitter andextended battle in which management rejected several offers andsought other bidders.

In other insurance financial news, OdysseyRe, which is nowprivately owned by Fairfax Financial Holdings Ltd., reported itsthird quarter results of net income of $128.2 million on grosspremium written of $630.9 million and a combined ratio of 96.9.

For the nine months, net income came in at $250.8 million withgross premiums written of $1.7 billion and a combined ratio of96.7.

Montpelier Re said it increased it dividend payment by 20percent to 9-cents a share payable on Jan. 15 to shareholders ofrecord as of Dec. 31.