Noncontrolling interest

6 Months Ended

Jun. 30, 2018

Noncontrolling interests

Investors in certain of the AlphaCat and BetaCat ILS funds have rights that enable them, subject to certain limitations, to redeem their shares. Such investments held by third parties are therefore recorded in the Company’s Consolidated Balance Sheets as redeemable noncontrolling interests, a mezzanine item between liabilities and shareholders’ equity. If and when a redemption notice is received, the fair value of the redemption is reclassified to accounts payable and accrued expenses.

The AlphaCat sidecars and one of the AlphaCat ILS funds have no shareholder redemption rights. Therefore, the third party equity is recorded in the Company’s Consolidated Balance Sheets as noncontrolling interests.

The following tables present a reconciliation of the beginning and ending balances of redeemable noncontrolling interests and noncontrolling interests for the three and six months ended June 30, 2018 and 2017:



	Redeemable Noncontrolling Interests						Noncontrolling Interests						Total
	Three Months Ended June 30,						Three Months Ended June 30,						Three Months Ended June 30,
	2018			2017			2018			2017			2018			2017
Balance, beginning of period	$	1,423,110		$	1,657,630		$	334,357		$	330,597		$	1,757,467		$	1,988,227
Issuance of shares	81,250			106,501			40,600			103,320			121,850			209,821
Adjustment to noncontrolling interests as a result of deconsolidation	—			(459,021		)	—			—			—			(459,021		)
Income attributable to noncontrolling interests	19,255			28,555			16,256			15,095			35,511			43,650
Redemption of shares / Distributions	(133,382		)	(82,005		)	(19,956		)	(33,354		)	(153,338		)	(115,359		)
Balance, end of period	$	1,390,233		$	1,251,660		$	371,257		$	415,658		$	1,761,490		$	1,667,318



	Redeemable Noncontrolling Interests						Noncontrolling Interests						Total
	Six Months Ended June 30,						Six Months Ended June 30,						Six Months Ended June 30,
	2018			2017			2018			2017			2018			2017
Balance, beginning of period	$	1,004,094		$	1,528,001		$	16,718		$	165,977		$	1,020,812		$	1,693,978
Issuance of shares	466,550			210,200			321,900			258,300			788,450			468,500
Adjustment to noncontrolling interests as a result of deconsolidation	—			(459,021		)	—			—			—			(459,021		)
Income attributable to noncontrolling interests	47,628			54,485			52,595			31,737			100,223			86,222
Redemption of shares / Distributions	(128,039		)	(82,005		)	(19,956		)	(40,356		)	(147,995		)	(122,361		)
Balance, end of period	$	1,390,233		$	1,251,660		$	371,257		$	415,658		$	1,761,490		$	1,667,318

As at June 30, 2018, redemptions payable of $80,315 (December 31, 2017: $180,104) relating to redeemable noncontrolling interests were included within accounts payable and accrued expenses in the Company’s Consolidated Balance Sheets.

VALIDUS HOLDINGS LTD 10-Q