UPDATE 1-Validus to employ IPC staff through year-end

* Validus will keep IPC staff on payroll through year end

* Validus CFO says no decision on employees at acquired co

NEW YORK, Sept 9 (Reuters) - Bermuda reinsurer Validus Holdings Ltd (VR.N) has not yet made a long-term decision on employment of staff who worked for recently acquired IPC Holdings, said Chief Financial Officer Joseph Consolino on Wednesday.

Consolino, in New York to meet with investors at a meeting held by Keefe, Bruyette & Woods, said Validus has agreed to keep IPC's staff on its payroll through the end of the year.

The company closed its $1.77 billion acquisition of IPC on Friday, after a bitter and months-long battle to acquire the rival reinsurer.

IPC, a small Bermuda-based reinsurer formed in 1993 to provide much-needed property-catastrophe capacity after Hurricane Andrew, had 32 employees.

Validus launched its takeover bid for IPC last March, challenging the plans of another Bermuda insurer, Max Capital Group Ltd (MXGL.O), to acquire IPC.

The acquisition of IPC greatly increases Validus' capacity to sell reinsurance policies at an opportune time since the prices for this type of coverage have been on the rise.

Reinsurers essentially provide insurance to other insurers, allowing the risk of loss to be spread among several carriers. (Reporting by Lilla Zuill, editing by Gerald E. McCormick)