Press Release
May 4, 2010 (GlobeNewswire via COMTEX News Network) -- Book Value of $10.10 Per Share Up 5.0% Since Year End 2009
First Quarter 2010 Financial Highlights
-- Net income of $13.6 million up 3.6% from first quarter 2009
-- Net operating earnings(1) of $16.2 million compared with $16.8 million
in first quarter of 2009
-- Income from operations totaled $25.6 million up 16.5% from first quarter
2009
-- Net earned premium of $263.9 million increased 25.6% from first quarter
of 2009
-- Net investment income of $17.6 million up 23.3% from first quarter 2009
-- Total investments of $1.7 billion up 3.9% from year end 2009
-- Annualized return on equity of 8.1% and operating (1) return on equity
of 9.4%
-- Combined ratio of 97.1% compared with 95.4% in the first quarter of 2009
-- American Capital Acquisition Corporation (ACAC) 25% quota share
agreement commenced March 1, 2010
HAMILTON, Bermuda, May 4, 2010 (GLOBE NEWSWIRE) -- Maiden Holdings, Ltd. (Nasdaq:MHLD) today reported first quarter 2010 net income of $13.6 million or $0.19 per diluted share and net operating earnings (1) of $16.2 million or $0.23 per diluted share.
"Maiden's results reflect continued solid underlying fundamentals in the face of a challenging quarter for the reinsurance industry overall and once again highlight the differentiated value of our non-catastrophe specialist approach," said Art Raschbaum, President and CEO of Maiden Holdings, Ltd. "We generated income from operations of $25.6 million this quarter and our teams continue to see increased opportunities to deliver our relationship-oriented products and services to our target regional and specialty property and casualty clients."
Raschbaum continued, "Our disciplined approach to our non-catastrophe, lower volatility, relationship model positions us well to capture additional opportunities and our new agreement with ACAC agreement generated approximately $22 million of net written premium and $2 million of earned premium in the month of March. We expect this relationship to further strengthen the top and bottom line over the next 12 months and beyond."
Shareholders' equity of $710.0 million grew $33.4 million during the quarter and book value per share increased 5.0% to $10.10 from $9.62 at year end 2009.
First Quarter 2010 Results:
Net written premium totaled $311.3 million compared with $336.5 million in the first quarter of 2009. Net earned premium of $263.9 million increased 25.6% from $210.1 million for the same period last year.
Net investment income of $17.6 million increased 23.3% from $14.3 million in the first quarter of 2009.
Loss and loss adjustment expenses of $170.3 million rose $24.0 million from $146.3 million in the first quarter of 2009. Results reflected a loss ratio of 64.5% compared with 69.6% for the same period a year ago.
Commission and other acquisition expenses together with general and administrative expenses of $85.9 million increased $31.8 million from the year ago quarter and reflected a total expense ratio of 32.6% compared with 25.8%. General and administrative expenses for the quarter totaled $8.6 million and reflected a general and administrative expense ratio of 3.3% compared to 3.6% in the first quarter of 2009.
The combined ratio for the first quarter totaled 97.1% compared with 95.4% in the first quarter of 2009.
Income from operations of $25.6 million increased $3.6 million, or 16.5%, from $22.0 million in the first quarter of 2009.
Total assets of $2.7 billion increased 3.5% from $2.6 billion from year end 2009. Total investable assets of $2.1 billion which include total investments, cash, restricted cash, cash equivalents and the loan to a related party, remained relatively stable from year end 2009. Shareholders' equity totaled $710.0 million up 5.0% from $676.5 million at year end 2009.
During the first quarter of 2010, the Board of Directors declared a dividend of $0.065 per share.
(1)Please see the Non-GAAP Financial Measures table for additional information on these non-GAAP financial measures and reconciliation of this measure to GAAP measures.
Conference Call
Maiden CEO Art Raschbaum and CFO John Marshaleck will review these results tomorrow morning via teleconference and live audio webcast beginning at 10:00 a.m. AT (9:00 a.m. ET).
To participate please access one of the following no later than 9:55 a.m. AT (8:55 a.m. ET):
1. .877.734.5373 for U.S. callers
1. 973.200.3059 for callers outside the U.S.
Webcast: www.maiden.bm/presentations_conferences
A replay of the conference call will be available beginning at 1:00 p.m. Atlantic Time (12:00 p.m. ET) on Wednesday, May 5, 2010 through May 12, 2010. To listen to the replay please dial toll free: 1 .800.642.1687 (U.S. callers) or toll 1.706.645.9291 (callers outside the U.S.) and enter the Passcode: 69886387; or access www.maiden.bm/presentations_conferences.
About Maiden Holdings, Ltd.
Maiden Holdings, Ltd. is a Bermuda holding company formed in 2007 to offer customized reinsurance products and services to regional and specialty insurance companies in the United States and Europe.
The Maiden Holdings, Ltd. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=5006
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, 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. Additional information about these risks and uncertainties, as well as others that may cause actual results to differ materially from those projected is contained in Item 1A. Risk Factors in the Company's Annual Report on Form 10-K for the year ended December 31, 2009 as updated in periodic filings with the SEC. The Company undertakes no obligation to publicly update any forward-looking statements, except as may be required by law.
Maiden Holdings, Ltd.
Balance Sheet
(in thousands (000's), except per share data)
3/31/2010 12/31/2009
(Unaudited) (Audited)
Assets
Fixed maturities,
available-for-sale, at fair
value (amortized cost
$1,669,433; $1,623,382) $1,726,472 $1,661,692
Other investments, at fair
value (cost $5,681; $5,684) 5,601 5,549
------------ ------------
Total investments 1,732,073 1,667,241
Cash and cash equivalents 62,743 107,396
Restricted cash and cash
equivalents 117,639 144,944
Accrued investment income 12,582 11,405
Reinsurance balances
receivable, net 299,237 208,495
Prepaid reinsurance 26,268 28,752
Losses recoverable on unpaid
losses 16,464 11,984
Loan to related party 167,975 167,975
Deferred commission and other
acquisition costs 178,254 172,983
Other assets 12,464 11,818
Intangible assets, net 49,832 51,284
Goodwill 52,617 52,617
------------ ------------
Total Assets $2,728,148 $2,636,894
============ ============
Liabilities and Shareholders'
Equity
Liabilities
Loss and loss adjustment
expense reserves $1,048,930 $1,006,320
Unearned premiums 629,940 583,478
Accrued expenses and other
liabilities 47,864 60,044
Securities sold under
agreements to repurchase, at
contract value 76,324 95,401
Junior subordinated debt 215,140 215,125
------------ ------------
Total Liabilities 2,018,198 1,960,368
------------ ------------
Shareholders' Equity:
Common shares 713 713
Additional paid-in capital 576,298 576,086
Treasury stock (3,801) (3,801)
Accumulated other
comprehensive income 56,959 32,747
Retained earnings 79,781 70,781
------------ ------------
Total Shareholders' Equity 709,950 676,526
------------ ------------
Total Liabilities and
Shareholders' Equity $2,728,148 $2,636,894
============ ============
Book value per share 10.10 9.62
Common shares outstanding 70,291,757 70,291,289
Maiden Holdings, Ltd.
Income Statement
(in thousands (000's), except per share data)
(Unaudited)
For the For the
Three Three
Months Months
Ended March Ended March
31, 2010 31, 2009
Revenues:
Gross premiums written $327,382 $336,548
----------- -----------
Net premiums written $311,291 $336,548
Decrease (increase) in unearned
premiums (47,362) (126,456)
----------- -----------
Net earned premium 263,929 210,092
Net investment income 17,581 14,259
Net realized investment gains
(losses) 312 (1,930)
----------- -----------
Total revenues 281,822 222,421
----------- -----------
Expenses:
Net loss and loss adjustment
expenses 170,285 146,288
Commission and other
acquisition expenses 77,396 46,631
General and administrative
expenses 8,552 7,535
Total expenses 256,233 200,454
----------- -----------
Income from operations 25,589 21,967
Other expense
Amortization of intangible
assets (1,452) (1,564)
Foreign exchange loss (1,153) (213)
Subordinated debt interest
expense (9,115) (7,090)
(11,720) (8,867)
----------- -----------
Income before income taxes 13,869 13,100
Income taxes:
Current tax expense -- --
Deferred tax expense 300 --
----------- -----------
Income tax expense 300 --
----------- -----------
Net income $13,569 $13,100
=========== ===========
Operating earnings (1) $16,162 $16,807
=========== ===========
Basic earnings per common share $0.19 $0.19
=========== ===========
Diluted earnings per common
share $0.19 $0.19
=========== ===========
Basic operating earnings per
common share $0.23 $0.25
=========== ===========
Diluted operating earnings per
common share $0.23 $0.25
=========== ===========
Dividends declared per common
share $0.065 $0.06
=========== ===========
Weighted average number of
basic shares outstanding 70,291,312 67,687,664
Weighted average number of
diluted shares outstanding 70,776,794 67,937,790
Net Loss and loss adjustment
expense ratio 64.5% 69.6%
Commission and other
acquisition expense ratio 29.3% 22.2%
General and administrative
expense ratio 3.3% 3.6%
----------- -----------
Combined ratio 97.1% 95.4%
=========== ===========
Annualized return on equity 8.1% 10.1%
Annualized return on equity on
operating earnings 9.4% 13.0%
Maiden Holdings, Ltd.
Non - GAAP Financial Measure
(in thousands (000's), except per share data)
(Unaudited)
For the For the
Three Three
Months Months
Ended Ended
March 31, March 31,
2010 2009
Reconciliation of net income to net operating earnings:
Net income $13,569 $13,100
Add (subtract)
Net realized investment
(gains) losses (312) 1,930
Foreign exchange and other
(gains) losses 1,153 213
Amortization of intangibles 1,452 1,564
Non-cash deferred tax charge 300 --
--------- ---------
Operating earnings (1) $16,162 $16,807
========= =========
Operating earnings per common share:
Basic earnings per share $0.23 $0.25
Diluted earnings per share $0.23 $0.25
(1) Net operating earnings is a non-GAAP financial
measure defined by the Company as net income excluding
realized investment gains and losses, foreign exchange
and other gains and losses, amortization of intangible
assets and non-cash deferred tax charge and should not
be considered as an alternative to net income. The
Company's management believes that net operating
earnings is a useful indicator of trends in the
Company's underlying operations. The Company's measure
of net operating earnings may not be comparable to
similarly titled measures used by other companies.
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This news release was distributed by GlobeNewswire, www.globenewswire.com
SOURCE: Maiden Holdings, Ltd.
CONTACT: Maiden Holdings, Ltd. Ellen Taylor Hilly Gross 441.292.7090 irelations@maiden.bm
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