Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Cash flows provided by (used in) operating activities
Net income	$ 54,903	$ 286,284
Adjustments to reconcile net income to cash provided by operating activities:
Share compensation expenses	25,769	20,637
Loss on redemption of AlphaCat ILS fund	0	402
Amortization of discount on Senior Notes	54	54
(Income) from investment and operating affiliates	(15,246)	(14,654)
Net realized and change in net unrealized losses (gains) on investments	73,305	(30,779)
Amortization of intangible assets	4,359	3,995
Foreign exchange losses (gains) included in net income	8,837	(9,686)
Amortization of premium on fixed maturity investments	6,853	7,012
Change in operational balance sheet items:
Premiums receivable	(1,010,121)	(648,195)
Deferred acquisition costs	(104,018)	(97,746)
Prepaid reinsurance premiums	(203,446)	(30,684)
Loss reserves recoverable	261,992	(113,508)
Paid losses recoverable	(24,994)	17,500
Reserve for losses and loss expenses	(125,377)	199,985
Unearned premiums	1,043,698	488,198
Reinsurance balances payable	75,018	111,488
Other operational balance sheet items, net	91,562	(137,618)
Net cash provided by operating activities	163,148	52,685
Cash flows provided by (used in) investing activities
Proceeds on sales of fixed maturity investments	1,739,391	1,632,371
Proceeds on maturities of fixed maturity investments	316,335	247,394
Purchases of fixed maturity investments	(1,867,720)	(1,682,609)
Purchases of short-term investments, net	(347,138)	(88,623)
Purchases of other investments, net	(12,487)	(33,870)
Decrease in securities lending collateral	600	7,265
(Investments in) distributions from investment affiliates, net	(11,864)	11,708
Purchase of subsidiary, net of cash	0	(183,923)
Net cash used in investing activities	(182,883)	(90,287)
Cash flows provided by (used in) financing activities
Net proceeds on issuance of notes payable to AlphaCat investors	98,720	269,645
Net proceeds on issuance of preferred shares	0	241,686
Redemption of common shares, net	(23,919)	(11,961)
Purchases of common shares under share repurchase program	0	(13,996)
Dividends paid on preferred shares	(11,656)	(4,406)
Dividends paid on common shares	(68,518)	(63,286)
Decrease in securities lending payable	(600)	(7,265)
Third party investments in redeemable noncontrolling interests	466,550	210,200
Third party redemptions of redeemable noncontrolling interests	(233,478)	(79,334)
Third party investments in noncontrolling interests	321,900	258,300
Third party distributions of noncontrolling interests	(20,118)	(96,125)
Third party subscriptions deployed on funds and sidecars, net	(645,233)	(171,952)
Net cash (used in) provided by financing activities	(116,352)	531,506
Effect of foreign currency rate changes on cash and cash equivalents and restricted cash	(8,068)	10,608
Net (decrease) increase in cash and cash equivalents and restricted cash	(144,155)	504,512
Cash and cash equivalents and restricted cash—beginning of period	1,149,653	490,932
Cash and cash equivalents and restricted cash—end of period	1,005,498	995,444
Supplemental disclosure of cash flow information:
Taxes paid during the period	868	568
Interest paid during the period	$ 25,090	$ 27,186

VALIDUS HOLDINGS LTD 10-Q