Validus Holdings Ltd. almost doubled its profits for the third quarter 2007, thanks largely to strong underwriting and improved capital usage.

The insurer/reinsurer saw its net income climb from $69.7 million or $1.19 per diluted common share in the third quarter 2006 to $136.5m or $1.90 per diluted common share for the equivalent period this year.

Net income for the nine months ended September 30 was $264.0m or $4.11 per diluted share, compared with $114.0m or $1.95 per diluted share for the corresponding period in 2006.

Commenting on the third quarter of 2007 results, Ed Noonan, chairman and Chief Executive Officer of Validus, said: "We are pleased to report an annualised net operating return on average equity in the quarter of 32.9 percent. Our results in the quarter reflect strong underwriting results across almost all lines of business in both Bermuda and London.

"Our results also reflect the benefits of improved capital utilisation through our acquisition of Talbot, with the exposure and earnings diversification that it brings to the Validus group."

In the third quarter of 2007, Validus incurred a $3m non-recurring expense to terminate an advisory agreement with its founding investor in conjunction with its IPO. and further incurred a $2.9m non-recurring expense arising from the issuance of additional warrants pursuant to the anti-dilution provisions of the warrants triggered by the Talbot Holdings Ltd. acquisition over the same period.