RISK REPORTING AND INVESTMENT ACCOUNTING SERVICES AGREEMENT

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                                                                 [EXHIBIT 10.16]

            RISK REPORTING & INVESTMENT ACCOUNTING SERVICES AGREEMENT

This RISK REPORTING AND INVESTMENT ACCOUNTING SERVICES AGREEMENT (the
"Agreement") is made as of the 8th day of December, 2005 ("Effective Date")
between BlackRock Financial Management, Inc. ("BlackRock") and Validus
Reinsurance, Ltd. ("Client"). WHEREAS, Client wishes to engage BlackRock to
provide certain risk measurement reporting services for Client as well as to
engage and appoint BlackRock as its agent to provide certain investment
accounting services for Client, all as set forth below; NOW, THEREFORE, the
parties agree as follows:

1. Services. (a) (i) Risk Services: BlackRock will provide Client with certain
risk measurement reports as set forth on Schedule A (each, a "Report"; together,
the "Reports Package"). Reports will be made available to Client on a website
(the "Client Site") that will be created and maintained by BlackRock for
password-protected access via the internet by certain Client personnel ("Client
Users," as defined in Schedule A). The Reports Package will be produced by
BlackRock using the same quality control procedures used for its other clients
of similar services. Client acknowledges that the creation of these Reports will
be dependent on portfolio and securities data that Client and/or its agents
(such as Client's custodian) shall provide in a format specified by BlackRock
("Client Data," as defined in Schedule A), and/or data obtained from BlackRock's
Accounting Services (as defined below), which are derived from the Client Data.
The "Risk Services" shall consist of provision of the Reports Package.

(ii) Accounting Services: BlackRock will perform investment accounting services
for Client as set forth in Schedule B (the "Accounting Services"), and such
additional accounting and other services as the parties may agree upon in
writing from time to time. BlackRock is hereby authorized to communicate with
Client's custodian regarding Client's account and portfolio and regarding
reports and information provided by or pertaining to Client, Client's custodian,
or BlackRock.

The "Services" shall consist of the Risk Services together with the Accounting
Services. The following provisions apply to the Risk Services or Accounting
Services as specifically noted.

With respect to the Risk Services:

(b) BlackRock will provide Client with improvements in the Services as and when
it makes such improvements generally available to its clients. Client also may
request new or additional Reports from BlackRock for an additional fee, as the
parties may agree.

(c) "Third Party Data" means any data provided by BlackRock that are not
proprietary to BlackRock and are listed in Schedule D. Certain Third Party Data
are required to use the Risk Services. Use of Third Party Data is subject to
certain additional contract and fee terms with the provider of such data, as
outlined in Schedule D.

(d) Client will provide the hardware, software, and internet connectivity
necessary for Client Users to access and use the Reports. Current requirements
are set forth in Schedule E. All use of the Risk Services will be subject to the
limitations set forth in this Agreement (and Schedule A), including limitations
on the number and identity of Client Users and limitations applicable to Third
Party Data (see Schedule D).

(e) Use of the Risk Services shall be for Client's internal business purposes
only. Only Client Users, as specified in Schedule A, shall be permitted to
access the Risk Services. Client shall not (i) provide Reports to any third
party, except as expressly permitted in this Agreement; or (ii) reverse engineer
or otherwise use the Risk Services in any way to develop, test, enhance, or
calibrate, on behalf of itself or for any other party, any system or services
that are similar to any component(s) of the Risk Services. Notwithstanding the
foregoing, in the ordinary course of its business, Client shall be permitted to
provide excerpts from Reports to its customers and prospective customers, so
long as the provision of such materials is not for a fee and is only an
incidental component of the service provided by Client to such customers or
prospective customers, and to its auditors and regulators as required by law,
rule, or practice. At BlackRock's request, Client shall provide BlackRock
indicative copies of its materials that include Report excerpts and are provided
to its customers.

(f) Client acknowledges that not all securities in its portfolios may lend
themselves to explicit analytically derived risk measures and that BlackRock may
not have procedures, methods, or models appropriate for

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risk analysis of certain types of securities. BlackRock will consult with
Client's designated representative in such cases to determine the appropriate
methodology for analysis of these securities for the Reports Package. In the
absence of input from Client in such instances, BlackRock will use its
reasonable judgment to analyze the security.

(g) BlackRock will provide the Reports Package to Client on the schedule set
forth in Schedule A. The timely production of each Report will depend on the
timely receipt of complete Client Data.

With respect to the Accounting Services.

(h) On the Effective Date, BlackRock shall commence work on the implementation
process and other tasks (together, the "Conversion") necessary to provide the
Accounting Services beginning after the Conversion is accepted by Client.
BlackRock will use commercially reasonable efforts to complete the Conversion
promptly subject to the timely receipt of necessary information from Client.

(i) Client shall be responsible for: (1) coordinating communications among
BlackRock and Client's custodian and advisors; (2) filing any claims in
connection with Client's invested assets (though BlackRock will facilitate
handling of certain claims, such as late-payment claims); (3) representing its
interest in any litigation relating to or involving the invested assets of
Client; (4) coordinating and controlling any movement of assets not relating to
trades and resolving any discrepancies related to the movement of such assets;
(5) notifying BlackRock of all such asset movement activity; (6) ensuring that
all necessary information from Client is timely received by BlackRock (see
Schedule B); and (7) advising BlackRock of, and ensuring all compliance with,
laws, procedures, instructions, and regulations applicable to Client due to the
specific nature of Client's business, including performing all acts required
with regard to any registration or qualification requirements imposed by any
governmental or self-regulatory authority, such as registration with SEC or
filings with the NAIC-SVO (notwithstanding the foregoing, BlackRock may assist
Client in its compliance efforts, as described in Schedule B). BlackRock shall
be entitled to rely on, for all purposes under this Agreement, any and all
instructions provided by Client. BlackRock may require, at its discretion, that
any such instructions be certified to in writing by an officer of Client.

For the avoidance of doubt, unless otherwise provided in a separate written
agreement with BlackRock, BlackRock's sole responsibility is to provide the
Accounting Services to assist Client in its financial reporting, and Client
shall be solely responsible for (i) monitoring its investments for compliance
with its investment guidelines and (ii) any judgments as to valuation of, or
purchase or sale of, securities in its portfolio; and in any case, (iii)
BlackRock shall have no responsibility for compliance with or the content of
Client's investment guidelines or for any actions of or conclusions drawn by
Client with respect to its portfolios or securities, whether or not such
conclusions are based on BlackRock's Accounting Services.

(j) Client takes sole responsibility for the acts or omissions of its custodian
and will have by the Accounting Services Commencement Date instructed its
custodian, and will instruct any future custodian of Client (such instructions
to remain