Bermuda’s Validus Holdings had its senior unsecured credit rating raised one level to BBB+ by Fitch Ratings for producing better underwriting results than peers.“The ratings upgrade reflects Validus’ solid operating performance and internal capital generation,” Fitch said in a statement yesterday.“The upgrade also reflects that the company’s underwriting performance, while volatile, compares favourably to other property catastrophe reinsurers.”Fitch also noted favourably that Validus has produced an operating and underwriting profit in each year of its existence.“This period includes 2011, when record levels of international catastrophe losses caused many of Validus’ comparably rated peers to report significant annual underwriting and operating losses,” Fitch said.“Fitch observes that the company’s share of global catastrophe losses since its inception, while significant in some cases, has been manageable and consistent with levels that might be expected from a reinsurer of Validus’ size and focus.”Most recently, Validus reported $408 million of net earnings in 2012, driven by a solid combined ratio of 86.8%, despite $361 million of net pre-tax losses and loss adjustment expenses from Superstorm Sandy in the fourth quarter of 2012.“Fitch believes that Validus uses sound risk management processes to manage its exposure to potential catastrophe-related losses by geographic zone and relative to its capital base. Validus’ low underwriting leverage enables the company to preserve capital during periods that include underwriting volatility,” the statement said.“Validus’ capital ratios (such as net premium to equity and assets to equity) have consistently remained well within tolerances for the current rating level. Fitch expects this trend to continue for the foreseeable future.”