PEMBROKE,
Commenting on the Company’s results, Maiden’s President and Chief
Executive Officer,
New LPT/ADC with
On
The Company’s entry into a New MTA with
Discontinued Operations
As part of its strategic review announced in early 2018, during the fourth quarter of 2018, the Company divested its U.S. reinsurance treaty operations. Except as explicitly described as held for sale or as discontinued operations, and unless otherwise noted, all discussions and amounts presented herein relate to the Company’s continuing operations except for net loss, net loss attributable to Maiden and net loss attributable to Maiden common shareholders.
Sale of
On
Consolidated Results for the Quarter Ended
In the fourth quarter of 2018, gross premiums written were
In the fourth quarter of 2018, net loss and loss adjustment expenses
increased to
Commission and other acquisition expenses were
The combined ratio(10) for the fourth quarter of 2018 totaled 149.8%, compared with 131.7% in the fourth quarter of 2017.
Net investment income increased modestly to
As of
Additional information regarding the Company’s results of operations can be found in the Company’s Annual Report on Form 10-K filing made concurrent with this news release.
Consolidated Results for the Twelve Months
Ended
The net loss attributable to Maiden common shareholders was
Gross premiums written were
Net loss and loss adjustment expenses of
Commission and other acquisition expenses were
The combined ratio(10) for 2018 totaled 127.7%, compared with 112.5% in 2017.
Net investment income was
Additional information regarding the Company’s results of operations can be found in the Company’s Annual Report on Form 10-K filing made concurrent with this news release.
Quarterly Dividends
On
Other Financial Matters
-
Total assets were
$5.3 billion atDecember 31, 2018 , compared to$6.5 billion atSeptember 30, 2018 . Shareholders' equity was$554.3 million atDecember 31, 2018 , compared to$772.6 million atSeptember 30, 2018 .
(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) | ||||||||
| December 31, 2018 | December 31, 2017 | |||||||
| (Unaudited) | (Audited) | |||||||
| Assets | ||||||||
|
Fixed maturities, available-for-sale, at fair value (Amortized
cost 2018: $3,109,980 ; 2017: |
$ | 3,051,568 | $ | 2,707,516 | ||||
|
Fixed maturities, held-to-maturity, at amortized cost (Fair value
2018: $998,012; 2017: |
1,015,681 | 1,097,801 | ||||||
| Other investments | 23,716 | 6,600 | ||||||
| Total investments | 4,090,965 | 3,811,917 | ||||||
| Cash and cash equivalents | 200,841 | 54,470 | ||||||
| Restricted cash and cash equivalents | 130,148 | 94,905 | ||||||
| Accrued investment income | 27,824 | 28,798 | ||||||
| Reinsurance balances receivable, net | 67,308 | 72,494 | ||||||
| Reinsurance recoverable on unpaid losses | ||||||||
| Loan to related party | 167,975 | 167,975 | ||||||
| Deferred commission and other acquisition expenses, net | 388,442 | 380,204 | ||||||
| Goodwill and intangible assets, net | - | - | ||||||
| Other assets | 39,482 | 131,608 | ||||||
| Assets held for sale | 174,475 | 1,901,818 | ||||||
| Total Assets | $ | 5,287,460 | $ | 6,644,189 | ||||
| Liabilities and Equity | ||||||||
| Liabilities | ||||||||
| Reserve for loss and loss adjustment expenses | $ | 3,055,976 | $ | 2,386,722 | ||||
| Unearned premiums | 1,200,419 | 1,230,882 | ||||||
| Accrued expenses and other liabilities | 65,494 | 90,069 | ||||||
| Senior notes - principal amount | 262,500 | 262,500 | ||||||
| Less: unamortized debt issuance costs | 7,806 | 8,018 | ||||||
| Senior notes, net | 254,694 | 254,482 | ||||||
| Liabilities held for sale | 155,961 | 1,449,408 | ||||||
| Total Liabilities | 4,732,544 | 5,411,563 | ||||||
| Commitments and Contingencies | ||||||||
| Equity | ||||||||
| Preference Shares | 465,000 | 465,000 | ||||||
| Common shares | 879 | 877 | ||||||
| Additional paid-in capital | 749,418 | 748,113 | ||||||
| Accumulated other comprehensive (loss) income | (65,616 | ) | 13,354 | |||||
| (Accumulated deficit) retained earnings | (563,891 | ) | 35,472 | |||||
| Treasury shares, at cost | (31,515 | ) | (30,642 | ) | ||||
| Total Maiden Shareholders’ Equity | 554,275 | 1,232,174 | ||||||
| Noncontrolling interest in subsidiaries | 641 | 452 | ||||||
| Total Equity | 554,916 | 1,232,626 | ||||||
| Total Liabilities and Equity | $ | 5,287,460 | $ | 6,644,189 | ||||
| Book value per common share(1) | $ | 1.08 | $ | 9.25 | ||||
| Common shares outstanding | 82,948,577 | 82,974,895 | ||||||
| Maiden Holdings, Ltd. | |||||||||||||||||
| Consolidated Statements of Income | |||||||||||||||||
| (in thousands (000's), except per share data) | |||||||||||||||||
| (Unaudited) | |||||||||||||||||
| For the Three Months Ended December 31, | For the Year Ended December 31, | ||||||||||||||||
| 2018 | 2017 | 2018 | 2017 | ||||||||||||||
| Revenues: | |||||||||||||||||
| Gross premiums written | $ | 388,451 | $ | 427,329 | $ | 2,017,798 | $ | 2,078,091 | |||||||||
| Net premiums written | $ | 388,112 | $ | 433,963 | $ | 2,014,597 | $ | 2,037,377 | |||||||||
| Change in unearned premiums | 96,812 | 46,259 | 11,605 | (44,718 | ) | ||||||||||||
| Net premiums earned | 484,924 | 480,222 | 2,026,202 | 1,992,659 | |||||||||||||
| Other insurance revenue | 2,052 | 1,986 | 9,681 | 9,802 | |||||||||||||
| Net investment income | 34,737 | 32,960 | 136,285 | 124,135 | |||||||||||||
| Net realized (losses) gains on investment | (1,247 | ) | 3,906 | (1,529 | ) | 12,222 | |||||||||||
| Total other-than-temporary impairment losses | (5,353 | ) | - | (5,832 | ) | - | |||||||||||
| Portion of loss recognized in other comprehensive income (loss) | - | - | - | - | |||||||||||||
| Net impairment losses recognized in earnings | (5,353 | ) | - | (5,832 | ) | - | |||||||||||
| Total revenues | 515,113 | 519,074 | 2,164,807 | 2,138,818 | |||||||||||||
| Expenses: | |||||||||||||||||
| Net loss and loss adjustment expenses | 556,618 | 464,825 | 1,880,121 | 1,555,433 | |||||||||||||
| Commission and other acquisition expenses | 157,714 | 156,026 | 654,740 | 643,797 | |||||||||||||
| General and administrative expenses | 15,201 | 14,034 | 64,940 | 53,004 | |||||||||||||
| Total expenses | 729,533 | 634,885 | 2,599,801 | 2,252,234 | |||||||||||||
| Non-GAAP loss from operations(2) | (214,420 | ) | (115,811 | ) | (434,994 | ) | (113,416 | ) | |||||||||
| Other expenses: | |||||||||||||||||
| Interest and amortization expenses | (4,831 | ) | (4,830 | ) | (19,318 | ) | (23,260 | ) | |||||||||
| Accelerated amortization of senior note issuance cost | - | - | - | (2,809 | ) | ||||||||||||
| Foreign exchange and other gains (losses) | 2,599 | (2,728 | ) | 4,461 | (14,921 | ) | |||||||||||
| Total other expenses | (2,232 | ) | (7,558 | ) | (14,857 | ) | (40,990 | ) | |||||||||
| Loss before income taxes | (216,652 | ) | (123,369 | ) | (449,851 | ) | (154,406 | ) | |||||||||
| Less: income tax expense (benefit) | 40 | (6,903 | ) | 441 | (6,757 | ) | |||||||||||
| Net loss from continuing operations | (216,692 | ) | (116,466 | ) | (450,292 | ) | (147,649 | ) | |||||||||
| Loss from discontinued operations, net of income tax | (52,504 | ) | (8,391 | ) | (94,113 | ) | (22,096 | ) | |||||||||
| Net loss | (269,196 | ) | (124,857 | ) | (544,405 | ) | (169,745 | ) | |||||||||
|
Add: net income from continuing operations attributable to
noncontrolling |
(39 | ) | (185 | ) | (219 | ) | (151 | ) | |||||||||
| Net loss attributable to Maiden | (269,235 | ) | (125,042 | ) | (544,624 | ) | (169,896 | ) | |||||||||
| Dividends on preference shares(3) | - | (8,545 | ) | (25,636 | ) | (29,156 | ) | ||||||||||
| Net loss attributable to Maiden common shareholders | $ | (269,235 | ) | $ | (133,587 | ) | $ | (570,260 | ) | $ | (199,052 | ) | |||||
|
Basic and diluted loss from continuing operations per share
attributable |
$ | (2.61 | ) | $ | (1.49 | ) | $ | (5.74 | ) | $ | (2.06 | ) | |||||
|
Basic and diluted loss from discontinued operations per share
attributable |
(0.64 | ) | (0.10 | ) | (1.13 | ) | (0.26 | ) | |||||||||
|
Basic and diluted loss per share attributable to Maiden common |
$ | (3.25 | ) | $ | (1.59 | ) | $ | (6.87 | ) | $ | (2.32 | ) | |||||
| Dividends declared per common share | $ | - | $ | 0.15 | $ | 0.35 | $ | 0.60 | |||||||||
| Annualized return on average common equity | -538.3 | % | -61.5 | % | -133.2 | % | -22.0 | % | |||||||||
| Weighted average number of common shares - basic and diluted(15) | 82,946,266 | 83,962,325 | 83,050,362 | 85,678,232 | |||||||||||||
| Maiden Holdings, Ltd. | |||||||||||||||||||||
| Supplemental Financial Data - Segment Information | |||||||||||||||||||||
| (in thousands (000's)) | |||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||
| For the Three Months Ended December 31, 2018 |
Diversified |
AmTrust |
Other | Total | |||||||||||||||||
| Gross premiums written | $ | 20,379 | $ | 368,072 | $ | - | $ | 388,451 | |||||||||||||
| Net premiums written | $ | 20,040 | $ | 368,072 | $ | - | $ | 388,112 | |||||||||||||
| Net premiums earned | $ | 29,649 | $ | 455,275 | $ | - | $ | 484,924 | |||||||||||||
| Other insurance revenue | 2,052 | - | - | 2,052 | |||||||||||||||||
| Net loss and loss adjustment expenses ("loss and LAE") | (19,613 | ) | (536,689 | ) | (316 | ) | (556,618 | ) | |||||||||||||
| Commissions and other acquisition expenses | (10,488 | ) | (147,226 | ) | - | (157,714 | ) | ||||||||||||||
| General and administrative expenses(4) | (4,066 | ) | (891 | ) | - | (4,957 | ) | ||||||||||||||
| Underwriting loss(5) | $ | (2,466 | ) | $ | (229,531 | ) | $ | (316 | ) | $ | (232,313 | ) | |||||||||
| Reconciliation to net loss from continuing operations | |||||||||||||||||||||
| Net investment income and realized losses on investment | 33,490 | ||||||||||||||||||||
| Total other-than-temporary impairment losses | (5,353 | ) | |||||||||||||||||||
| Interest and amortization expenses | (4,831 | ) | |||||||||||||||||||
| Foreign exchange and other gains | 2,599 | ||||||||||||||||||||
| Other general and administrative expenses(4) | (10,244 | ) | |||||||||||||||||||
| Income tax expense | (40 | ) | |||||||||||||||||||
| Net loss from continuing operations | $ | (216,692 | ) | ||||||||||||||||||
| Net loss and LAE ratio(6) | 61.9 | % | 117.9 | % | 114.3 | % | |||||||||||||||
| Commission and other acquisition expense ratio(7) | 33.1 | % | 32.3 | % | 32.4 | % | |||||||||||||||
| General and administrative expense ratio(8) | 12.8 | % | 0.2 | % | 3.1 | % | |||||||||||||||
| Expense ratio(9) | 45.9 | % | 32.5 | % | 35.5 | % | |||||||||||||||
| Combined ratio(10) | 107.8 | % | 150.4 | % | 149.8 | % | |||||||||||||||
| For the Three Months Ended December 31, 2017 |
Diversified |
AmTrust |
Other | Total | |||||||||||||||||
| Gross premiums written | $ | 9,528 | $ | 417,801 | $ | - | $ | 427,329 | |||||||||||||
| Net premiums written | $ | 9,087 | $ | 424,876 | $ | - | $ | 433,963 | |||||||||||||
| Net premiums earned | $ | 21,389 | $ | 458,833 | $ | - | $ | 480,222 | |||||||||||||
| Other insurance revenue | 1,986 | - | - | 1,986 | |||||||||||||||||
| Net loss and LAE | (13,166 | ) | (451,659 | ) | - | (464,825 | ) | ||||||||||||||
| Commissions and other acquisition expenses | (7,036 | ) | (148,988 | ) | (2 | ) | (156,026 | ) | |||||||||||||
| General and administrative expenses(4) | (4,145 | ) | (812 | ) | - | (4,957 | ) | ||||||||||||||
| Underwriting loss(5) | $ | (972 | ) | $ | (142,626 | ) | $ | (2 | ) | $ | (143,600 | ) | |||||||||
| Reconciliation to net loss from continuing operations | |||||||||||||||||||||
| Net investment income and realized gains on investment | 36,866 | ||||||||||||||||||||
| Interest and amortization expenses | (4,830 | ) | |||||||||||||||||||
| Foreign exchange losses | (2,728 | ) | |||||||||||||||||||
| Other general and administrative expenses(4) | (9,077 | ) | |||||||||||||||||||
| Income tax benefit | 6,903 | ||||||||||||||||||||
| Net loss from continuing operations | $ | (116,466 | ) | ||||||||||||||||||
| Net loss and LAE ratio(6) | 56.3 | % | 98.4 | % | 96.4 | % | |||||||||||||||
| Commission and other acquisition expense ratio(7) | 30.1 | % | 32.5 | % | 32.4 | % | |||||||||||||||
| General and administrative expense ratio(8) | 17.8 | % | 0.2 | % | 2.9 | % | |||||||||||||||
| Expense ratio(9) | 47.9 | % | 32.7 | % | 35.3 | % | |||||||||||||||
| Combined ratio(10) | 104.2 | % | 131.1 | % | 131.7 | % | |||||||||||||||
| Maiden Holdings, Ltd. | |||||||||||||||||||||
| Supplemental Financial Data - Segment Information | |||||||||||||||||||||
| (in thousands (000's)) | |||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||
| For the Year Ended December 31, 2018 |
Diversified |
AmTrust |
Other | Total | |||||||||||||||||
| Gross premiums written | $ | 131,518 | $ | 1,886,280 | $ | - | $ | 2,017,798 | |||||||||||||
| Net premiums written | $ | 129,319 | $ | 1,885,278 | $ | - | $ | 2,014,597 | |||||||||||||
| Net premiums earned | $ | 112,487 | $ | 1,913,715 | $ | - | $ | 2,026,202 | |||||||||||||
| Other insurance revenue | 9,681 | - | - | 9,681 | |||||||||||||||||
| Net loss and LAE | (71,441 | ) | (1,806,995 | ) | (1,685 | ) | (1,880,121 | ) | |||||||||||||
| Commissions and other acquisition expenses | (38,749 | ) | (615,991 | ) | - | (654,740 | ) | ||||||||||||||
| General and administrative expenses(4) | (17,396 | ) | (3,845 | ) | - | (21,241 | ) | ||||||||||||||
| Underwriting loss(5) | $ | (5,418 | ) | $ | (513,116 | ) | $ | (1,685 | ) | $ | (520,219 | ) | |||||||||
| Reconciliation to net loss from continuing operations | |||||||||||||||||||||
| Net investment income and realized losses on investment | 134,756 | ||||||||||||||||||||
| Total other-than-temporary impairment losses | (5,832 | ) | |||||||||||||||||||
| Interest and amortization expenses | (19,318 | ) | |||||||||||||||||||
| Foreign exchange and other gains | 4,461 | ||||||||||||||||||||
| Other general and administrative expenses(4) | (43,699 | ) | |||||||||||||||||||
| Income tax expense | (441 | ) | |||||||||||||||||||
| Net loss from continuing operations | $ | (450,292 | ) | ||||||||||||||||||
| Net loss and LAE ratio(6) | 58.5 | % | 94.4 | % | 92.3 | % | |||||||||||||||
| Commission and other acquisition expense ratio(7) | 31.7 | % | 32.2 | % | 32.2 | % | |||||||||||||||
| General and administrative expense ratio(8) | 14.2 | % | 0.2 | % | 3.2 | % | |||||||||||||||
| Expense ratio(9) | 45.9 | % | 32.4 | % | 35.4 | % | |||||||||||||||
| Combined ratio(10) | 104.4 | % | 126.8 | % | 127.7 | % | |||||||||||||||
| For the Year Ended December 31, 2017 |
Diversified |
AmTrust |
Other | Total | |||||||||||||||||
| Gross premiums written | $ | 84,613 | $ | 1,993,478 | $ | - | $ | 2,078,091 | |||||||||||||
| Net premiums written | $ | 82,521 | $ | 1,954,856 | $ | - | $ | 2,037,377 | |||||||||||||
| Net premiums earned | $ | 83,015 | $ | 1,909,644 | $ | - | $ | 1,992,659 | |||||||||||||
| Other insurance revenue | 9,802 | - | - | 9,802 | |||||||||||||||||
| Net loss and LAE | (54,714 | ) | (1,498,881 | ) | (1,838 | ) | (1,555,433 | ) | |||||||||||||
| Commissions and other acquisition expenses | (29,018 | ) | (614,777 | ) | (2 | ) | (643,797 | ) | |||||||||||||
| General and administrative expenses(4) | (15,976 | ) | (3,052 | ) | - | (19,028 | ) | ||||||||||||||
| Underwriting loss(5) | $ | (6,891 | ) | $ | (207,066 | ) | $ | (1,840 | ) | $ | (215,797 | ) | |||||||||
| Reconciliation to net loss from continuing operations | |||||||||||||||||||||
| Net investment income and realized gains on investment | 136,357 | ||||||||||||||||||||
| Interest and amortization expenses | (23,260 | ) | |||||||||||||||||||
| Accelerated amortization of senior note issuance cost | (2,809 | ) | |||||||||||||||||||
| Foreign exchange losses | (14,921 | ) | |||||||||||||||||||
| Other general and administrative expenses(4) | (33,976 | ) | |||||||||||||||||||
| Income tax benefit | 6,757 | ||||||||||||||||||||
| Net loss from continuing operations | $ | (147,649 | ) | ||||||||||||||||||
| Net loss and LAE ratio(6) | 58.9 | % | 78.4 | % | 77.7 | % | |||||||||||||||
| Commission and other acquisition expense ratio(7) | 31.3 | % | 32.2 | % | 32.2 | % | |||||||||||||||
| General and administrative expense ratio(8) | 17.2 | % | 0.2 | % | 2.6 | % | |||||||||||||||
| Expense ratio(9) | 48.5 | % | 32.4 | % | 34.8 | % | |||||||||||||||
| Combined ratio(10) | 107.4 | % | 110.8 | % | 112.5 | % | |||||||||||||||
| Maiden Holdings, Ltd. | |||||||||||||||||
| Non - GAAP Financial Measures | |||||||||||||||||
| (in thousands (000's), except per share data) | |||||||||||||||||
| (Unaudited) | |||||||||||||||||
| For the Three Months Ended December 31, | For the Year Ended December 31, | ||||||||||||||||
| 2018 | 2017 | 2018 |
2017 |
||||||||||||||
| Non-GAAP operating loss attributable to Maiden common shareholders(11) | $ | (212,414 | ) | $ | (126,372 | ) | $ | (471,562 | ) | $ | (169,608 | ) | |||||
| Non-GAAP basic and diluted operating loss per share attributable to Maiden common shareholders | $ | (2.56 | ) | $ | (1.51 | ) | $ | (5.68 | ) | $ | (1.98 | ) | |||||
| Annualized non-GAAP operating return on average common equity(12) | -424.7 | % | -58.2 | % | -110.1 | % | -18.7 | % | |||||||||
|
Reconciliation of net loss attributable to Maiden common
shareholders to non-GAAP operating loss attributable |
|||||||||||||||||
| Net loss attributable to Maiden common shareholders | $ | (269,235 | ) | $ | (133,587 | ) | $ | (570,260 | ) | $ | (199,052 | ) | |||||
| Add (subtract) | |||||||||||||||||
| Net realized losses (gains) on investment | 1,247 | (3,906 | ) | 1,529 | (12,222 | ) | |||||||||||
| Total other-than-temporary impairment losses | 5,353 | - | 5,832 | - | |||||||||||||
| Foreign exchange and other (gains) losses | (2,599 | ) | 2,728 | (4,461 | ) | 14,921 | |||||||||||
| Divested NGHC Quota Share run-off | 316 | 2 | 1,685 | 1,840 | |||||||||||||
| Accelerated amortization of senior note issuance cost | - | - | - | 2,809 | |||||||||||||
| Loss from discontinued operations, net of income tax | 52,504 | 8,391 | 94,113 | 22,096 | |||||||||||||
| Non-GAAP operating loss attributable to Maiden common shareholders(11) | $ | (212,414 | ) | $ | (126,372 | ) | $ | (471,562 | ) | $ | (169,608 | ) | |||||
| Weighted average number of common shares - basic and diluted(15) | 82,946,266 | 83,962,325 | 83,050,362 | 85,678,232 | |||||||||||||
|
Reconciliation of diluted loss per share attributable to Maiden
common shareholders to non-GAAP diluted |
|||||||||||||||||
| Diluted loss per share attributable to Maiden common shareholders | $ | (3.25 | ) | $ | (1.59 | ) | $ | (6.87 | ) | $ | (2.32 | ) | |||||
| Add (subtract) | |||||||||||||||||
| Net realized losses (gains) on investment | 0.02 | (0.05 | ) | 0.02 | (0.14 | ) | |||||||||||
| Total other-than-temporary impairment losses | 0.07 | - | 0.07 | - | |||||||||||||
| Foreign exchange and other (gains) losses | (0.03 | ) | 0.03 | (0.05 | ) | 0.17 | |||||||||||
| Divested NGHC Quota Share run-off | - | - | 0.02 | 0.02 | |||||||||||||
| Accelerated amortization of senior note issuance cost | - | - | - | 0.03 | |||||||||||||
| Loss from discontinued operations, net of income tax | 0.63 | 0.10 | 1.13 | 0.26 | |||||||||||||
| Non-GAAP diluted operating loss per share attributable to Maiden common shareholders | $ | (2.56 | ) | $ | (1.51 | ) | $ | (5.68 | ) | $ | (1.98 | ) | |||||
| Reconciliation of net loss attributable to Maiden to non-GAAP (loss) income from operations: | |||||||||||||||||
| Net loss attributable to Maiden | $ | (269,235 | ) | $ | (125,042 | ) | $ | (544,624 | ) | $ | (169,896 | ) | |||||
| Add (subtract) | |||||||||||||||||
| Foreign exchange and other (gains) losses | (2,599 | ) | 2,728 | (4,461 | ) | 14,921 | |||||||||||
| Interest and amortization expenses | 4,831 | 4,830 | 19,318 | 23,260 | |||||||||||||
| Accelerated amortization of senior note issuance cost | - | - | - | 2,809 | |||||||||||||
| Income tax expense (benefit) | 40 | (6,903 | ) | 441 | (6,757 | ) | |||||||||||
| Net income attributable to noncontrolling interest | 39 | 185 | 219 | 151 | |||||||||||||
| Loss from discontinued operations, net of income tax | 52,504 | 8,391 | 94,113 | 22,096 | |||||||||||||
| Non-GAAP loss from operations(2) | $ | (214,420 | ) | $ | (115,811 | ) | $ | (434,994 | ) | $ | (113,416 | ) | |||||
| Maiden Holdings, Ltd. | |||||||
| Non - GAAP Financial Measures | |||||||
| (in thousands (000's), except per share data) | |||||||
| (Unaudited) | |||||||
| December 31, 2018 | December 31, 2017 | ||||||
| Investable assets: | |||||||
| Total investments | $ | 4,090,965 | $ | 3,811,917 | |||
| Cash and cash equivalents | 200,841 | 54,470 | |||||
| Restricted cash and cash equivalents | 130,148 | 94,905 | |||||
| Loan to related party | 167,975 | 167,975 | |||||
| Total investable assets(13) | $ | 4,589,929 | $ | 4,129,267 | |||
| December 31, 2018 | December 31, 2017 | ||||||
| Capital: | |||||||
| Preference shares | $ | 465,000 | $ | 465,000 | |||
| Common shareholders' equity | 89,275 | 767,174 | |||||
| Total Maiden shareholders' equity | 554,275 | 1,232,174 | |||||
| 2016 Senior Notes | 110,000 | 110,000 | |||||
| 2013 Senior Notes | 152,500 | 152,500 | |||||
| Total capital resources(14) | $ | 816,775 | $ | 1,494,674 | |||
| (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 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, accelerated amortization of senior note issuance cost, 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 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 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 from operations may not be comparable to similarly titled measures used by other companies. |
| (3) Dividends on preference shares consist of $0 and $3,093 paid to Preference shares - Series A for the three months ended December 31, 2018 and 2017, respectively, $9,282 and $12,375 paid to Preference shares - Series A for the twelve months ended December 31, 2018 and 2017, respectively, $0 and $2,940 paid to Preference shares - Series C for the three months ended December 31, 2018 and 2017, respectively, $8,816 and $11,756 paid to Preference shares - Series C for the twelve months ended December 31, 2018 and 2017, respectively, and $0 and $2,512 paid to Preference shares - Series D for the three months ended December 31, 2018 and 2017, respectively, and $7,538 and $5,025 for the twelve months ended December 31, 2018 and 2017, 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 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, total other-than-temporary impairment losses, foreign exchange and other gains and losses, Divested NGHC Quota Share run-off, accelerated amortization of senior note issuance cost, 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 is a useful indicator of trends in the Company's underlying operations. The Company's measure of non-GAAP operating loss 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 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 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/20190315005079/en/
Source:
Sard Verbinnen & Co.
Maiden-SVC@sardverb.com