An exploding space rocket cost Validus Holdings $19 million in losses during the third-quarter, but the company still increased its profit to $89.8 million, a rise of about $23 million year-on-year.

A SpaceX Falcon-9 rocket that blew up while undergoing a test firing at Cape Canaveral on September 1, resulted in a net loss of $8.1 million attributable to Validus Re, and a net loss of $10.8 million to Validus Holding’s Talbot segment.

That was the only non-notable loss event suffered by the company during the third quarter. It had no notable loss events.

Bermudian-based Validus Holdings’ net income for the period equated to $1.11 per diluted share, compared to $0.78 in the same period last year.

Net operating income for the three months was $82.6 million, compared with $65.8 million a year ago.

Gross written premiums fell 7.5 per cent to $372.4 million, primarily driven by decreases in the Validus Re, Talbot and AlphaCat segments, offset partially by an increase in the Western World segment.

Ed Noonan, chief executive officer, said: “Validus delivered favourable results for the third quarter of 2016, with a combined ratio of 82.4 per cent and strong investment returns driving book value growth of 2.5 per cent inclusive of common dividends.

“Given current market conditions we continue to reduce exposure in areas under the most competitive pressure — notably marine and energy and certain property classes — while continuing to expand our profile in US insurance and the management of third party capital.”

Validus Re increased its underwriting income from $56.6 million to $67.1 million.

Validus Holdings’ loss ratio for the period was 45.8 per cent, which included $52.9 million of favourable loss reserve development on prior accident years; this compares to a loss ratio of 46.1 per cent for the same period in 2015.

Book value per diluted share was $45.16 on September 30, reflecting quarterly growth of 2.5 per cent, inclusive of common dividends.

On the New York Stock Exchange shares of Validus Holdings closed at $50.40, down 82 cents, or 1.6 per cent, before the third-quarter results were released.