NEW YORK (Bloomberg) Shares of Bermuda-based Validus Holdings Ltd., the reinsurer started with the backing of former Marsh & McLennan Cos. chief executive officer Jeffrey Greenberg, climbed one percent after the company raised a less-than-expected $335.4 million in an initial share sale yesterday.

The firm sold 15.2 million shares for $22 apiece, according to a statement from the Hamilton, Bermuda-based company. That's below the $24 to $26 range and the 15.7 million shares the firm and its shareholders planned to sell according to a July 19 filing with the US Securities and Exchange Commission.

The reduction in the number of shares sold came after the company's investors pulled stock they planned to sell and Validus increased the amount offered, according to a term sheet. Underwriters have the option of selling an additional 2.29 million shares if demand warrants.

"The selling shareholders didn't want to go below $24," said Ben Holmes, who tracks the IPO market as publisher of Morningnotes.com in Boulder, Colorado. "It's a sign of confidence that sellers believe they can get more for the stock at a later date."

Shares of Validus climbed 25 cents to $22.25 by 4 p.m. in New York Stock Exchange composite trading.

Natural disasters including Hurricanes Katrina, Rita and Wilma led to soaring prices for reinsurance, or coverage for insurance companies. Validus joins rivals such as Flagstone Reinsurance Holdings Ltd. and Greenlight Capital Re Ltd. in offering shares to the public this year.

Proceeds from the sale will be used to repay debt, fund a portion of the company's acquisition of London-based Talbot Holdings Ltd. and to issue more policies.

Net income for the quarter ended March 31 jumped almost four-fold to $56.7 million. Profit for 2006 rose to $183.1 million from a loss of $49.7 million for 2005.

Reinsurers sell policies to insurance companies that want to reduce their potential losses from catastrophic events. In March, billionaire Warren Buffett told investors that his Berkshire Hathaway Inc. was reducing the amount of catastrophe coverage it sells because prices are falling from their 2006 highs.

Greenberg, who resigned from Marsh & McLennan in 2004 amid a lawsuit, is the managing principal of private-equity firm Aquiline Capital Partners LLC, Validus's initial investor, according to SEC filings. Validus is run by CEO Edward Noonan, who previously ran a unit of Munich Re, the world's second- largest reinsurer.

The Validus sale was led by Goldman Sachs Group Inc. and Merrill Lynch & Co. with assistance from 13 other banks. The stock trades under the ticker VR.