Validus Holdings' wholly-owned subsidiary Validus Reinsurance has entered into a collateralised quota share retrocessional reinsurance agreement with respect to certain lines of marine and offshore energy reinsurance contracts for the 2008 underwriting year.

The agreement provides that the retrocessionaire will maintain funds in a trust equal to its potential liabilities under the ceded business. Validus also announced that the collateralised quota share retrocessional reinsurance agreement with Petrel Re Limited will not be extended beyond the 2007 underwriting year.