Validus Holdings Ltd. boosted its profits by almost $30 million for the first quarter of 2009 as operating returns and gross premiums written rose, in addition to strong renewal pricing at January 1 and rate increases in its Talbot business.

The reinsurer's net income climbed to $94.9 million, or $1.20 per share, in the first quarter from $66.5 million, or 85 cents per share, for the same period in 2008.

Net operating income also advanced to $100.4 million or $1.27 per share from $65.5 million or 84 cents over the corresponding time.

Validus' CEO Ed Noonan said: "We are very pleased with the results of the first quarter, in which we produced an annualised operating return on average shareholders' equity of 20.3 percent, diluted EPS of $1.20 and diluted operating EPS of $1.27.

"We continue to be positioned to benefit strongly from the improved pricing environment we see in our core short-tail lines of business.

"Our gross premiums written rose 16.9 percent in the quarter compared to the first quarter of 2008. Our Validus Re segment grew gross premiums written by 23.9 percent year-over-year and growth in gross premiums written in the Talbot segment was 12.9 percent.

"This growth was achieved in the Validus Re segment through strong renewal pricing at January 1 and in the Talbot segment through rate increases and the contributions from our new underwriting teams. In the quarter, we maintained our conservative risk management philosophy and achieved our growth with no meaningful expansion in our risk profile. We see strong opportunities arising in the current capacity-constrained market and intend to capitalise on them."

Gross premiums written reached $609.9 million in the first quarter of 2009, compared to $521.6 million for the same quarter last year, representing an increase of $88.3 million, or 16.9 percent.

The company's combined ratio was down at 75 percent from 82.4 percent over the same period, which included $8.1 million of favourable prior year loss reserve development, benefiting the loss ratio by 2.5 percentage points.