PEMBROKE,
Maiden's book value per common share(1) was
Consolidated Results for the Quarter Ended
In the first quarter of 2019, gross premiums written were
First quarter 2019 net loss and loss adjustment expenses decreased to
Commission and other acquisition expenses decreased to
General and administrative expenses for the first quarter of 2019
totaled
The combined ratio(10) for first quarter 2019 totaled 129.6%, compared with 102.9% in first quarter 2018.
First quarter 2019 net investment income decreased modestly to
Additional information regarding the Company’s results of operations can be found in the Company’s Quarterly Report on Form 10-Q filing made concurrent with this news release.
Quarterly Dividends
The Company's Board of Directors did not authorize any quarterly dividends related to either its common shares or any series of its preferred shares. Additional information regarding the Company’s dividends can be found in the Company’s Quarterly Report on Form 10-Q filing made concurrent with this news release.
Other Financial Matters
Total assets were
(1)(11) Please see the Non-GAAP Financial Measures table for additional information on these non-GAAP financial measures and reconciliation of these measures to GAAP measures.
(6)(7)(8)(9)(10) Loss ratio, commission and other acquisition expense ratio, general and administrative expense ratio, expense ratio and combined ratio are non-GAAP operating metrics. Please see the additional information on these measures under Non-GAAP Financial Measures tables.
About
Forward Looking Statements
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 and unusual frequency of storm
activity, 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. In addition, the Company
may not be able to complete the proposed transaction with
Maiden Holdings, Ltd. | |||||||||
Consolidated Balance Sheets | |||||||||
(in thousands (000's), except per share data) | |||||||||
March 31, 2019 | December 31, 2018 | ||||||||
(Unaudited) | (Audited) | ||||||||
Assets | |||||||||
Fixed maturities, available-for-sale, at fair value (Amortized
cost 2019: $3,130,981 ; 2018: |
$ | 3,131,934 | $ | 3,051,568 | |||||
Fixed maturities, held-to-maturity, at amortized cost (Fair value 2018: $998,012) | - | 1,015,681 | |||||||
Other investments, at fair value | 24,693 | 23,716 | |||||||
Total investments | 3,156,627 | 4,090,965 | |||||||
Cash and cash equivalents | 89,521 | 200,841 | |||||||
Restricted cash and cash equivalents | 42,334 | 130,148 | |||||||
Accrued investment income | 27,788 | 27,824 | |||||||
Reinsurance balances receivable, net | 72,867 | 67,308 | |||||||
Loan to related party | 167,975 | 167,975 | |||||||
Deferred commission and other acquisition expenses, net | 161,976 | 388,442 | |||||||
Funds withheld receivable | 652,087 | 27,039 | |||||||
Other assets | 14,729 | 12,443 | |||||||
Assets held for sale | 177,452 | 174,475 | |||||||
Total Assets | $ | 4,563,356 | $ | 5,287,460 | |||||
Liabilities and Equity | |||||||||
Liabilities | |||||||||
Reserve for loss and loss adjustment expenses | $ | 2,980,113 | $ | 3,055,976 | |||||
Unearned premiums | 455,175 | 1,200,419 | |||||||
Reinsurance balances payable, net | 117,943 | 52,594 | |||||||
Accrued expenses and other liabilities | 12,087 | 12,900 | |||||||
Senior notes - principal amount | 262,500 | 262,500 | |||||||
Less: unamortized debt issuance costs | 7,753 | 7,806 | |||||||
Senior notes, net | 254,747 | 254,694 | |||||||
Liabilities held for sale | 159,002 | 155,961 | |||||||
Total Liabilities | 3,979,067 | 4,732,544 | |||||||
Commitments and Contingencies | |||||||||
Equity | |||||||||
Preference Shares | 465,000 | 465,000 | |||||||
Common shares | 881 | 879 | |||||||
Additional paid-in capital | 750,670 | 749,418 | |||||||
Accumulated other comprehensive loss | (220) | (65,616) | |||||||
Accumulated deficit | (600,527) | (563,891) | |||||||
Treasury shares, at cost | (31,515) | (31,515) | |||||||
Total Maiden Shareholders’ Equity | 584,289 | 554,275 | |||||||
Noncontrolling interest in subsidiaries | - | 641 | |||||||
Total Equity | 584,289 | 554,916 | |||||||
Total Liabilities and Equity | $ | 4,563,356 | $ | 5,287,460 | |||||
Book value per common share(1) | $ | 1.44 | $ | 1.08 | |||||
Common shares outstanding | 83,064,173 | 82,948,577 | |||||||
Maiden Holdings, Ltd. | |||||
Consolidated Statements of Income | |||||
(in thousands (000's), except per share data) | |||||
(Unaudited) | |||||
For the Three Months Ended March 31, | |||||
2019 |
2018 |
||||
Revenues: | |||||
Gross premiums written | $ | (561,139) | $ | 623,328 | |
Net premiums written | $ | (561,530) | $ | 622,651 | |
Change in unearned premiums | 744,632 | (105,838) | |||
Net premiums earned | 183,102 | 516,813 | |||
Other insurance revenue | 750 | 3,726 | |||
Net investment income | 32,022 | 32,869 | |||
Net realized (losses) gains on investment | (11,101) | 357 | |||
Total revenues | 204,773 | 553,765 | |||
Expenses: | |||||
Net loss and loss adjustment expenses | 152,689 | 353,206 | |||
Commission and other acquisition expenses | 69,617 | 166,628 | |||
General and administrative expenses | 15,939 | 15,671 | |||
Total expenses | 238,245 | 535,505 | |||
Non-GAAP (loss) income from operations(2) | (33,472) | 18,260 | |||
Other expenses: | |||||
Interest and amortization expenses | (4,829) | (4,829) | |||
Foreign exchange and other gains (losses) | 4,979 | (2,407) | |||
Total other expenses | 150 | (7,236) | |||
(Loss) income before income taxes | (33,322) | 11,024 | |||
Less: income tax benefit | (38) | (1,324) | |||
Net (loss) income from continuing operations | (33,284) | 12,348 | |||
(Loss) income from discontinued operations, net of income tax | (3,352) | 9,995 | |||
Net (loss) income | (36,636) | 22,343 | |||
Net income from continuing operations attributable to noncontrolling interests | - | (71) | |||
Net (loss) income attributable to Maiden | (36,636) | 22,272 | |||
Dividends on preference shares(3) | - | (8,545) | |||
Net loss attributable to Maiden common shareholders | $ | (36,636) | $ | 13,727 | |
Basic (loss) earnings from continuing operations per share
attributable to Maiden common |
$ | (0.40) | $ | 0.05 | |
Basic (loss) earnings from discontinued operations per share
attributable to Maiden common |
(0.04) | 0.12 | |||
Basic (loss) earnings per share attributable to Maiden common shareholders | $ | (0.44) | $ | 0.17 | |
Diluted (loss) earnings from continuing operations per share
attributable to Maiden common |
$ | (0.40) | $ | 0.04 | |
Diluted (loss) earnings from discontinued operations per share
attributable to Maiden |
(0.04) | 0.12 | |||
Diluted (loss) earnings per share attributable to Maiden common shareholders(15) | $ | (0.44) | $ | 0.16 | |
Dividends declared per common share | $ | - | $ | 0.15 | |
Annualized return on average common equity | -142.5% | 7.6% | |||
Weighted average number of common shares - basic | 82,965,156 | 83,040,413 | |||
Adjusted weighted average number of common shares and assumed conversions - diluted(15) | 82,965,156 | 83,318,542 | |||
Maiden Holdings, Ltd. | |||||||||||||||||
Supplemental Financial Data - Segment Information | |||||||||||||||||
(in thousands (000's)) | |||||||||||||||||
(Unaudited) | |||||||||||||||||
For the Three Months Ended March 31, 2019 |
Diversified |
AmTrust |
Other | Total | |||||||||||||
Gross premiums written | $ | 15,338 | $ | (576,477) | $ | - | $ | (561,139) | |||||||||
Net premiums written | $ | 14,947 | $ | (576,477) | $ | - | $ | (561,530) | |||||||||
Net premiums earned | $ | 25,292 | $ | 157,810 | $ | - | $ | 183,102 | |||||||||
Other insurance revenue | 750 | - | - | 750 | |||||||||||||
Net loss and loss adjustment expenses ("loss and LAE") | (14,391) | (138,070) | (228) | (152,689) | |||||||||||||
Commissions and other acquisition expenses | (9,261) | (60,356) | - | (69,617) | |||||||||||||
General and administrative expenses(4) | (3,031) | (1,266) | - | (4,297) | |||||||||||||
Underwriting loss(5) | $ | (641) | $ | (41,882) | $ | (228) | $ | (42,751) | |||||||||
Reconciliation to net loss from continuing operations | |||||||||||||||||
Net investment income and realized losses on investment | 20,921 | ||||||||||||||||
Interest and amortization expenses | (4,829) | ||||||||||||||||
Foreign exchange and other gains | 4,979 | ||||||||||||||||
Other general and administrative expenses(4) | (11,642) | ||||||||||||||||
Income tax benefit | 38 | ||||||||||||||||
Net loss from continuing operations | $ | (33,284) | |||||||||||||||
Net loss and LAE ratio(6) | 55.3% | 87.5% | 83.0% | ||||||||||||||
Commission and other acquisition expense ratio(7) | 35.6% | 38.2% | 37.9% | ||||||||||||||
General and administrative expense ratio(8) | 11.6% | 0.8% | 8.7% | ||||||||||||||
Expense ratio(9) | 47.2% | 39.0% | 46.6% | ||||||||||||||
Combined ratio(10) | 102.5% | 126.5% | 129.6% | ||||||||||||||
For the Three Months Ended March 31, 2018 |
Diversified |
AmTrust |
Other | Total | |||||||||||||
Gross premiums written | $ | 49,400 | $ | 573,928 | $ | - | $ | 623,328 | |||||||||
Net premiums written | $ | 48,271 | $ | 574,380 | $ | - | $ | 622,651 | |||||||||
Net premiums earned | $ | 25,515 | $ | 491,298 | $ | - | $ | 516,813 | |||||||||
Other insurance revenue | 3,726 | - | - | 3,726 | |||||||||||||
Net loss and LAE | (15,899) | (337,307) | - | (353,206) | |||||||||||||
Commissions and other acquisition expenses | (9,312) | (157,316) | - | (166,628) | |||||||||||||
General and administrative expenses(4) | (4,481) | (920) | - | (5,401) | |||||||||||||
Underwriting loss(5) | $ | (451) | $ | (4,245) | $ | - | $ | (4,696) | |||||||||
Reconciliation to net income from continuing operations | |||||||||||||||||
Net investment income and realized gains on investment | 33,226 | ||||||||||||||||
Interest and amortization expenses | (4,829) | ||||||||||||||||
Foreign exchange losses | (2,407) | ||||||||||||||||
Other general and administrative expenses(4) | (10,270) | ||||||||||||||||
Income tax benefit | 1,324 | ||||||||||||||||
Net income from continuing operations | $ | 12,348 | |||||||||||||||
Net loss and LAE ratio(6) | 54.4% | 68.7% | 67.9% | ||||||||||||||
Commission and other acquisition expense ratio(7) | 31.8% | 32.0% | 32.0% | ||||||||||||||
General and administrative expense ratio(8) | 15.3% | 0.2% | 3.0% | ||||||||||||||
Expense ratio(9) | 47.1% | 32.2% | 35.0% | ||||||||||||||
Combined ratio(10) | 101.5% | 100.9% | 102.9% | ||||||||||||||
Maiden Holdings, Ltd. | ||||||||
Non - GAAP Financial Measures | ||||||||
(in thousands (000's), except per share data) | ||||||||
(Unaudited) | ||||||||
For the Three Months Ended March 31, | ||||||||
2019 | 2018 | |||||||
Non-GAAP operating (loss) income attributable to Maiden common shareholders(11) | $ | (26,934) | $ | 5,782 | ||||
Non-GAAP basic and diluted operating (loss) earnings per share attributable to Maiden common shareholders | $ | (0.32) | $ | 0.07 | ||||
Annualized non-GAAP operating return on average common equity(12) | -104.7% | 3.2% | ||||||
Reconciliation of net (loss) income attributable to Maiden
common shareholders to non-GAAP operating (loss) |
||||||||
Net (loss) income attributable to Maiden common shareholders | $ | (36,636) | $ | 13,727 | ||||
Add (subtract) | ||||||||
Net realized losses (gains) on investment | 11,101 | (357) | ||||||
Foreign exchange and other (gains) losses | (4,979) | 2,407 | ||||||
Loss (income) from discontinued operations, net of income tax | 3,352 | (9,995) | ||||||
Divested NGHC Quota Share run-off | 228 | - | ||||||
Non-GAAP operating (loss) income attributable to Maiden common shareholders(11) | $ | (26,934) | $ | 5,782 | ||||
Weighted average number of common shares - basic | 82,965,156 | 83,040,413 | ||||||
Adjusted weighted average number of common shares and assumed conversions - diluted(15) | 82,965,156 | 83,318,542 | ||||||
Reconciliation of diluted (loss) earnings per share
attributable to Maiden common shareholders to non-GAAP |
||||||||
Diluted (loss) earnings per share attributable to Maiden common shareholders | $ | (0.44) | $ | 0.16 | ||||
Add (subtract) | ||||||||
Net realized losses (gains) on investment | 0.13 | - | ||||||
Foreign exchange and other (gains) losses | (0.06) | 0.03 | ||||||
Loss (income) from discontinued operations, net of income tax | 0.04 | (0.12) | ||||||
Divested NGHC Quota Share run-off | 0.01 | - | ||||||
Non-GAAP diluted operating (loss) earnings per share attributable to Maiden common shareholders | $ | (0.32) | $ | 0.07 | ||||
Reconciliation of net (loss) income attributable to Maiden to non-GAAP (loss) income from operations: | ||||||||
Net (loss) income attributable to Maiden | $ | (36,636) | $ | 22,272 | ||||
Add (subtract) | ||||||||
Foreign exchange and other (gains) losses | (4,979) | 2,407 | ||||||
Interest and amortization expenses | 4,829 | 4,829 | ||||||
Income tax benefit | (38) | (1,324) | ||||||
Loss (income) from discontinued operations, net of income tax |
3,352 |
(9,995) |
||||||
Net income attributable to noncontrolling interest |
- |
71 |
||||||
Non-GAAP (loss) income from operations(2) | $ | (33,472) | $ | 18,260 | ||||
Maiden Holdings, Ltd. | |||||||||||||
Non - GAAP Financial Measures | |||||||||||||
(in thousands (000's), except per share data) | |||||||||||||
(Unaudited) | |||||||||||||
March 31, 2019 | December 31, 2018 | ||||||||||||
Investable assets: | |||||||||||||
Total investments | $ | 3,156,627 | $ | 4,090,965 | |||||||||
Cash and cash equivalents | 89,521 | 200,841 | |||||||||||
Restricted cash and cash equivalents | 42,334 | 130,148 | |||||||||||
Loan to related party | 167,975 | 167,975 | |||||||||||
Funds withheld | 652,087 | 27,039 | |||||||||||
Total investable assets(13) | $ | 4,108,544 | $ | 4,616,968 | |||||||||
March 31, 2019 | December 31, 2018 | ||||||||||||
Capital: | |||||||||||||
Preference shares | $ | 465,000 | $ | 465,000 | |||||||||
Common shareholders' equity | 119,289 | 89,275 | |||||||||||
Total Maiden shareholders' equity | 584,289 | 554,275 | |||||||||||
2016 Senior Notes | 110,000 | 110,000 | |||||||||||
2013 Senior Notes | 152,500 | 152,500 | |||||||||||
Total capital resources(14) | $ | 846,789 | $ | 816,775 | |||||||||
(1) Book value per common share is calculated using Maiden common shareholders’ equity (shareholders' equity excluding the aggregate liquidation value of our preference shares) divided by the number of common shares outstanding. |
(2) Non-GAAP (loss) income from operations is a non-GAAP financial measure defined by the Company as net loss attributable to Maiden excluding foreign exchange and other gains and losses, interest and amortization expenses, income tax expense, net income or loss attributable to noncontrolling interest and loss from discontinued operations, net of income tax and should not be considered as an alternative to net income (loss). The Company’s management believes that non-GAAP (loss) income from operations is a useful measure of the Company’s underlying earnings fundamentals based on its underwriting and investment income before financing costs. This (loss) income from operations enables readers of this information to more clearly understand the essential operating results of the Company. The Company’s measure of non-GAAP (loss) income from operations may not be comparable to similarly titled measures used by other companies. |
(3) Dividends on preference shares consist of $0 and $3,094 paid to Preference shares - Series A for the three months ended March 31, 2019 and 2018, respectively, $0 and $2,939 paid to Preference shares - Series C for the three months ended March 31, 2019 and 2018, respectively, and $0 and $2,512 paid to Preference shares - Series D for the three months ended March 31, 2019 and 2018, respectively. |
(4) Underwriting related general and administrative expenses is a non-GAAP measure and includes expenses which are segregated for analytical purposes as a component of underwriting income. |
(5) Underwriting loss is a non-GAAP measure and is calculated as net premiums earned plus other insurance revenue less net loss and LAE, commission and other acquisition expenses and general and administrative expenses directly related to underwriting activities. Management believes that this measure is important in evaluating the underwriting performance of the Company and its segments. This measure is also a useful tool to measure the profitability of the Company separately from the investment results and is also a widely used performance indicator in the insurance industry. |
(6) Calculated by dividing net loss and LAE by the sum of net premiums earned and other insurance revenue. |
(7) Calculated by dividing commission and other acquisition expenses by the sum of net premiums earned and other insurance revenue. |
(8) Calculated by dividing general and administrative expenses by the sum of net premiums earned and other insurance revenue. |
(9) Calculated by adding together the commission and other acquisition expense ratio and general and administrative expense ratio. |
(10) Calculated by adding together the net loss and LAE ratio and the expense ratio. |
(11) Non-GAAP operating (loss) income is a non-GAAP financial measure defined by the Company as net loss attributable to Maiden common shareholders excluding realized and unrealized investment gains and losses, foreign exchange and other gains and losses, Divested NGHC Quota Share run-off and loss from discontinued operations, net of income tax and should not be considered as an alternative to net loss. The Company's management believes that non-GAAP operating (loss) income is a useful indicator of trends in the Company's underlying operations. The Company's measure of non-GAAP operating (loss) income may not be comparable to similarly titled measures used by other companies. |
(12) Non-GAAP operating return on average common equity is a non-GAAP financial measure. Management uses non-GAAP operating return on average common shareholders' equity as a measure of profitability that focuses on the return to Maiden common shareholders. It is calculated using non-GAAP operating (loss) income attributable to Maiden common shareholders divided by average Maiden common shareholders' equity. |
(13) Investable assets is the total of the Company's investments, cash and cash equivalents, funds withheld receivable and loan to a related party. |
(14) Total capital resources is the sum of the Company's principal amount of debt and Maiden shareholders' equity. |
(15) During a period of loss, the basic weighted average common shares outstanding is used in the denominator of the diluted loss per common share computation as the effect of including potential dilutive shares would be anti-dilutive. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20190510005537/en/
Source:
Sard Verbinnen & Co.
Maiden-SVC@sardverb.com