Validus Holdings, Ltd. INVESTOR PRESENTATION THIRD QUARTER 2012 - PowerPoint PPT Presentation

Validus Holdings, Ltd. INVESTOR PRESENTATION – THIRD QUARTER 2012 London Waterloo Germany New York Bermuda Miami Dubai Singapore Chile

Cautionary Note Regarding Forward-looking Statements This presentation may include forward-looking statements, both with respect to us and our industry, that reflect our current views with respect to future events and financial performance. Statements that include the words “expect,” “intend,” “plan,” “believe,” “project,” “anticipate,” “will,” “may” and similar statements of a future or forward -looking nature identify forward-looking statements. All forward-looking statements address matters that involve risks and uncertainties. Accordingly, there are or will be important factors that could cause actual results to differ materially from those indicated in such statements and, therefore, you should not place undue reliance on any such statements. We believe that these factors include, but are not limited to, the following: 1) unpredictability and severity of catastrophic events; 2) rating agency actions; 3) adequacy of Validus’ risk management and loss limitation methods; 4) cyclicality of demand and pricing in the insurance an d reinsurance markets; 5) statutory or regulatory developments including tax policy, reinsurance and other regulatory matters; 6) Validus’ ability to implement its business strategy during “soft” as well as “hard” markets; 7) adequacy of Validus’ loss reserves; 8) continued availability of capital and financing; 9) retention of key personnel; 10) competition; 11) potential loss of business from one or more major insurance or reinsurance brokers; 12) Validus’ ability to implement, successfully and on a timely basis, complex infrastructure, distribut ion capabilities, systems, procedures and internal controls, and to develop accurate actuarial data to support the business and regulatory and reporting requirements; 13) general economic and market conditions (including inflation, volatility in the credit and capital markets, interest rates and foreign currency exchange rates); 14) the integration of businesses Validus may acquire or new business ventures Validus may start; 15) the effect on Validus’ investment portfolios of changing financial market conditions including inflation, interest rates, liquidi ty and other factors; 16) acts of terrorism or outbreak of war; and 17) availability of reinsurance and retrocessional coverage, as well as management’s response to any of the aforementioned factors. The foregoing review of important factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included herein and elsewhere, including the Risk Factors included in our most recent reports on Form 10-K and Form 10-Q and other documents on file with the Securities and Exchange Commission. Any forward-looking statements made in this presentation are qualified by these cautionary statements, and there can be no assurance that the actual results or developments anticipated by us will be realized or, even if substantially realized, that they will have the expected consequences to, or effects on, us or our business or operations. We undertake no obligation to update publicly or revise any forward-looking statement, whether as a result of new information, future developments or otherwise. 2

Selected Market Information at September 30, 2012 Exchange / Ticker: NYSE / “VR” Share Price: $33.91 Primary Shares Outstanding: 93,494,391 Primary Market Capitalization: $3.17 billion Annual Dividend/Yield: $1.00 per share (2.95%) Analyst Coverage: Ryan Byrnes, Janney Capital Markets Matt Carletti, JMP Securities Jay Cohen, Bank of America Merrill Lynch Julia Ferguson, Dowling & Partners Matt Heimermann, J.P. Morgan Amit Kumar, Macquarie Brian Meredith, UBS Michael Nannizzi, Goldman Sachs Matt Rohrmann, Keefe, Bruyette & Woods Josh Shanker, Deutsche Bank Meyer Shields, Stifel Nicolaus Mike Zaremski, Credit Suisse 3

Validus, From Formation to Today: A Case Study in Value Creation • Since commencing operations in late 2005, Validus has established leading global positions in Bermuda and at Lloyd’s – Influential position in Bermuda reinsurance – Competitive position at Lloyd’s, where Talbot is the 11th largest of 89 syndicates – Size and scale to remain a strong, independent competitor • Business plan since formation has been to focus on short-tail lines, which have been the best- priced classes of risk – Underwriting acumen has been validated by ability to attract and manage third-party capital from sophisticated investors • Maintained a focus on underwriting profits in conjunction with a strong balance sheet – Minimal exposure to interest rate risk – History of favorable reserve development – Profitable every year since inception • Delivered superior financial results since 2007 IPO, outperforming short-tail Bermuda peers • Active capital management, returning $1.65 billion to investors through repurchases and dividends from IPO through October 23, 2012 1 • Attained a premium valuation to our peer group 4 1 Excluding cash paid in IPC transaction.

Validus Shareholders’ Equity vs. Selected Peers Peer Comparison – Q3 2012 Common Shareholders’ Equity in $US Billions 8.0 6.8 7.0 6.2 6.0 5.4 5.0 5.0 4.0 3.6 3.4 3.3 3.0 2.9 3.0 2.4 1.8 2.0 1.5 1.5 0.8 1.0 - RE PRE AXS ACGL VR RNR AWH ALTE AHL ENH PTP AGII MRH FSR 5 5 Source: SNL Financial and Company reports.

Validus is Diversified in Short-Tail Specialty Classes Last Twelve Months Managed GPW through September 30, 2012 of $2.3 billion Balanced by Class: 50% Property, 29% Marine, 21% Specialty Validus Re Consolidated Talbot Holdings Managed Gross Premiums Written Gross Premiums Written Last Twelve Months $1.3 billion Last Twelve Months $1.1 billion Other 4% Fin. Inst 4% Specialty 8% Aviation 10% Marine Marine 36% 21% Onshore Property Energy 10% Cat XOL Other 57% Property 14% War 17% Property 19% • Operates in the best priced segments of the reinsurance • Well diversified portfolio of short-tail business focused on industry insurance • Leadership position in property catastrophe reinsurance • Leader in the War and Marine classes • $717.0 million of LTM managed property Cat GPW • Most risks are non-U.S. • Analytics based underwriting culture • $392.8 million of reserve releases since 2007 acquisition • Experienced underwriting team • Provides global licensing and other Lloyd’s benefits • Quoting market, not a “price taker” 6 a) $2.3 billion consolidated managed gross premiums written reflects $68.8 million of intersegment eliminations, $94.3 million of premium for AlphaCat Re 2011 and $32.2 million of premium for AlphaCat Re 2012. Validus Re Consolidated managed gross premiums written and Talbot Holdings gross premiums written do not.

Validus Underwriting Capacity Validus Has Multiple Sources of Capital to Approach Different Market Opportunities ($ in millions) • Rated “A (Excellent)” by A.M. Best • Primary operating entity in Bermuda • Focus is on first-tier reinsurance clients Validus $3,424 Re • Capitalized in April 2012 • Rated “A - (Excellent)” by A.M. Best • Combines the long-term returns available from alternative investments with uncorrelated top-layer P α CRe $513 catastrophe risk • Formed in May 2011 • Writes collateralized, low attachment point AcRe retrocessional and similar risks $322 2011 • Formed in May 2012 • Writes collateralized reinsurance with a particular focus on windstorm risks of Florida domiciled AcRe $77 2012 insurance companies 7 7

2012 Bermuda (Re)Insurers Lloyd’s Syndicate Capacities – In US$ Millions Bermuda (Re)Insurers 1,000 942 900 800 700 600 550 500 440 400 330 314 283 300 212 200 165 115 100 0 8 8 Source: Lloyd’s of London, Aon Benfield and Company Reports. Converted at rate of exchange £1.00 = $1.57

Each of Validus’ Operations is a Leader in its Markets Bermuda Rankings Lloyds Ranking 2011 Unaffiliated Reinsurance Syndicate Capacities Company Premium Written ($mm) Managing Agent Validus Reinsurance, Ltd. $1,110.6 2003 Catlin $1,401.0 Renaissance Reinsurance Ltd. 1,009.4 2001 Amlin 1,175.0 XL Re Ltd 726.2 510 RJ Kiln 1,064.0 2999 QBE 1,060.0 Amlin AG 723.4 Partner Reinsurance Company Ltd. 684.2 0033 Hiscox 950.0 Everest Reinsurance (Bermuda), Ltd. 615.0 2623 Beazley Furlonge 946.2 2987 Brit 940.0 Axis Specialty Limited 604.6 4472 Liberty 910.0 Catlin Insurance Co. Ltd. 549.0 1084 Chaucer 832.0 Arch Reinsurance Ltd. 531.3 1414 Ascot 650.0 Endurance Specialty Insurance Ltd. 455.0 1183 Talbot 600.0 DaVinci Reinsurance Ltd. 436.8 Montpelier Reinsurance Ltd. 433.6 Market Total (90 syndicates) $24,034.1 Alterra Bermuda Limited 417.9 Ariel Reinsurance Company Ltd. 412.7 Top 14 Subtotal: $8,709.7 Validus Re is the largest market for Talbot is a top-quartile performer in the Lloyd’s market third party reinsurance in Bermuda 9 Source for Bermuda Rankings, see Notes pages. Source for Lloyds Syndicate Capacities: Moody’s Investors Service as of December 16, 2011.