Press Release
HAMILTON, Bermuda, Jul 30, 2008 (PrimeNewswire via COMTEX News Network) -- Maiden Holdings, Ltd. (Nasdaq:MHLD) today reported net income of $13.8 million and net premium written of $171.3 million for the second quarter ended June 30, 2008. Earnings per share for the second quarter were $0.23.Second Quarter and Six Months 2008 Highlights:
* Net premium written for second quarter 2008 was $171.3 million * Net premium written for six months ended June 30, 2008 was $273.7 million * Net income for the second quarter was $13.8 million * Net income for six months ended June 30, 2008 was $26.3 million * Return on equity for the second quarter was 10.4% on an annualized basis * Return on equity for six months ended June 30, 2008 on an annualized basis was 9.8% * Quarterly earnings per basic share for second quarter 2008 was $0.23 * Earnings per basic share for six months ended June 30, 2008 was $0.44 * The combined ratio for the second quarter was 92.3% * The combined ratio for six months ended June 30, 2008 was 92.4%
Second Quarter 2008 Results:
Revenue:
Net written premium for the second quarter was $171.3 million and net earned premium was $77.3 million. Net investment income was $7.8 million for the quarter ended June 30, 2008. For the six months ended June 30, 2008, net written premium was $273.7 million and net earned premium was $142.6 million. Net investment income for the six months was $15.4 million.
Expenses:
The Company's loss ratio for the second quarter 2008 was 56.4%. The Company's expenses for the second quarter 2008 were $27.7 million resulting in an expense ratio of 35.9% for the quarter. The Company's loss ratio for six months ended June 30, 2008 was 57.1% and the expense ratio was 35.4%.
Other Matters:
Shareholders' Equity as of June 30, 2008 increased to $536.7 million from $530.6 million as of March 31, 2008. During the second quarter the Company announced a dividend of $0.05.
Conference Call:
On July 31, 2008 at 3:00 p.m. Atlantic Time (2:00 p.m. ET), the Company will hold a conference call that can be accessed as follows:
Toll Dial-in (International Callers): 719.325.4845
Toll-free Dial-in: 877.340.7913
Webcast: http://www.maiden.bm
In order to participate in the conference call, you must register at http://www.maiden.bm.
A replay of the conference call will be available starting at 5:00 p.m. Atlantic Time on Thursday, July 31, 2008 through Wednesday, August 6, 2008 by dialing toll 719.457.0820 or toll-free 888.203.1112. The passcode for the replay is 4188502. Replay of the webcast will also be available at http://www.maiden.bm.
About Maiden Holdings, Ltd.
Maiden Holdings, Ltd. is a Bermuda holding company formed in May, 2007 to offer customized reinsurance products and services, through Maiden Insurance Company, Ltd., its wholly owned Bermuda reinsurance subsidiary, to small and mid-size insurance companies in the United States and Europe.
The Maiden Holdings, Ltd. logo is available at http://www.primenewswire.com/newsroom/prs/?pkgid=5006
Forward Looking Statement
This release contains "forward-looking statements" which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The forward-looking statements are based on the Company's current expectations and beliefs concerning future developments and their potential effects on the Company. There can be no assurance that actual developments will be those anticipated by the Company. Actual results may differ materially from those projected as a result of significant risks and uncertainties, including non-receipt of the expected payments, changes in interest rates, effect of the performance of financial markets on investment income and fair values of investments, developments of claims and the effect on loss reserves, accuracy in projecting loss reserves, the impact of competition and pricing environments, changes in the demand for the Company's products, the effect of general economic conditions, adverse state and federal legislation, regulations and regulatory investigations into industry practices, developments relating to existing agreements, heightened competition, changes in pricing environments, and changes in asset valuations. The Company undertakes no obligation to publicly update any forward-looking statements.
Maiden Holdings, Ltd.
Income Statement
(in thousands (000's), except per share data)
(Unaudited)
For the Period For the Period
Three Months from Six Months from
Ended May 31 to Ended May 31 to
June 30, June 30, June 30, June 30,
2008 2007 2008 2007
---------- ------- ---------- -------
Revenues:
Premium income:
Net premiums written $ 171,251 $ -- $ 273,683 $ --
Change in unearned
premiums (93,913) -- (131,040) --
---------- ------- ---------- -------
Net earned premium 77,338 -- 142,643 --
Net investment income 7,763 59 15,372 59
Net realized investment
gains 39 -- 163 --
---------- ------- ---------- -------
Total revenues 85,140 59 158,178 59
---------- ------- ---------- -------
Expenses:
Loss and loss adjust-
ment expenses 43,610 -- 81,446 --
Commission and other
acquisition expenses 25,498 -- 46,758 --
Salaries and benefits 615 -- 1,147 --
Other operating
expenses 1,625 136 2,519 136
---------- ------- ---------- -------
Total expenses 71,348 136 131,870 136
---------- ------- ---------- -------
Net income $ 13,792 $ (77) 26,308 $ (77)
========== ======= ========== =======
Basic and diluted
earnings per common
share $ 0.23 $ (0.02) 0.44 $ (0.02)
========== ======= ========== =======
Dividends declared per
common share $ 0.05 $ -- 0.10 $ --
========== ======= ========== =======
Weighted average number
of basic and diluted
shares outstanding 59,550,000 4,026 59,550,000 4,026
Combined ratio 92.3% N/A 92.4% N/A
Annualized return
on equity 10.4% -3.80% 9.8% -3.80%
Maiden Holdings, Ltd.
Balance Sheet
(in thousands (000's), except per share data)
(Unaudited)
30-Jun-08 31-Dec-07
Assets
Fixed maturities, available-for-sale,
at fair value (amortized cost $752,990;
$488,765) $ 721,496 $ 474,789
Other investments, at fair value
(cost $15,199; $15,176) 12,134 15,656
---------- ----------
Total investments 733,630 490,445
Cash and cash equivalents 74,170 35,729
Accrued investment income 4,827 3,204
Reinsurance balances receivable, net 101,933 27,990
Loan to related party 167,975 113,542
Prepaid expenses and other assets 62 454
Deferred commission and other acquisition
costs 91,011 44,215
Furniture and equipment, net 70 29
---------- ----------
Total Assets $1,173,678 $ 715,608
========== ==========
Liabilities and Shareholders' Equity
Liabilities
Loss and loss adjustment expense reserves $ 83,340 $ 38,508
Unearned premiums 268,206 137,166
Accrued expenses and other liabilities 4,175 2,589
Due to broker 26,660 --
Securities sold under agreements to
repurchase, at contract value 254,557 --
---------- ----------
Total Liabilities 636,938 178,263
---------- ----------
Shareholders' Equity:
Common shares 596 596
Additional paid-in capital 530,038 529,647
Accumulated other comprehensive loss (34,845) (13,496)
Retained earnings 40,951 20,598
---------- ----------
Total Shareholders' Equity 536,740 537,345
---------- ----------
Total Liabilities and Shareholders'
Equity $1,173,677 $ 715,608
========== ==========
Book value per share $ 9.01 $ 9.02
Common shares outstanding 59,550,000 59,550,000
This news release was distributed by PrimeNewswire, www.primenewswire.com
SOURCE: Maiden Holdings, Ltd.
Maiden Holdings, Ltd.
Devora M. Goldenberg
441.292.7090
info@maiden.bm
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