Press Release
Mar 3, 2010 (GlobeNewswire via COMTEX News Network) --
Shareholders' Equity of $676.5 Million Up 32.7% for the Year
Year-end 2009 Book Value of $9.62 Per Share
Financial Highlights
-- Net income of $16.7 million in the quarter and $61.1million for 2009
-- Net operating earnings(1) of $17.6 million in the quarter and $64.9
million for 2009
-- Net written premium of $234.1 million in the quarter and $1.0 billion
for 2009
-- Net investment income of $16.8 million up 30.3% from fourth quarter 2008
-- Total investable assets of $2.1 billion at year end with total
investments of $1.7 billion
-- Income from operations totaled $28.8 million in the quarter and $101.0
million for 2009
-- Annualized return on equity of 9.9% and operating(1) return on equity of
10.4%
-- Combined ratio of 95.5% for the quarter compared to 97.2% a year ago
HAMILTON, Bermuda, March 3, 2010 (GLOBE NEWSWIRE) -- Maiden Holdings, Ltd. (Nasdaq:MHLD) today reported fourth quarter 2009 net income of $16.7 million or $0.24 per diluted share and net operating earnings (1) of $17.6 million or $0.25 per diluted share. For the full year 2009, net income totaled $61.1 million or $0.87 per diluted share with net operating earnings of $64.9 million or $0.93 per diluted share.
"I'm very proud of how well the team came together this year to deliver for our clients and shareholders," said Art Raschbaum, President and CEO of Maiden Holdings, Ltd. "Our fourth quarter and full year results reflect our intense effort as we integrated two operating platforms while maintaining a strong, non-catastrophe, client value proposition as well as our underwriting and pricing discipline even in the face of challenging market conditions. The January renewal season provided additional confirmation of the value of our business model as we achieved our client retention target of 85% or better. These results, in addition to our newly consummated relationship with American Capital Acquisition Corporation, solidly position us in the face of competitive pressures and a continued low yield environment."
Shareholders' equity of $676.5 million grew 2.0% during the quarter and 32.7% from year end 2008. Book value per share of $9.62 compared with $8.70 at year end 2008.
Fourth Quarter 2009 Results:
Net written premium totaled $234.1 million compared with $340.5 million in the fourth quarter of 2008. Net earned premium of $248.6 million increased $84.8 million compared with $163.8 million for the same period last year.
Net investment income totaled $16.8 million; up $3.9 million from $12.9 million in the fourth quarter of 2008.
Loss and loss adjustment expenses of $146.1 million rose $30.8 million from $115.3 million in the fourth quarter of 2008. Results reflected a loss ratio of 58.8% compared with 70.4% for the same period a year ago.
Commission and other acquisition expenses together with general and administrative expenses of $91.2 million increased $47.2 million from the year ago quarter and reflected a total expense ratio of 36.7% compared with 26.8%. General and administrative expenses for the quarter totaled $9.4 million and reflected a general and administrative expense ratio of 3.8% compared to 5.7% in the fourth quarter of 2008.
Maiden posted a combined ratio of 95.5% for the quarter compared with 97.2% in the fourth quarter of 2008.
Income from operations totaled $28.8 million in the fourth quarter and increased $6.5 million, or 29.4%, from $22.3 million in the fourth quarter of 2008.
During the fourth quarter of 2009, the Board of Directors declared a dividend of $0.065 per share.
Full Year 2009 Results
Net written premium totaled $1.0 billion compared with $727.4 million in 2008. Net earned premium of $919.9 million rose $499.8 million compared with $420.1 million in 2008.
Net investment income totaled $63.0 million; up $25.7 million, or 69.1%, from $37.2 million in 2008.
Loss and loss adjustment expenses of $608.6 million rose $344.9 million from $263.7 million in 2008. Results reflected a loss ratio of 66.2% compared with 62.8% for full year 2008.
Commission and other acquisition expenses together with general and administrative expenses of $273.6 million increased $138.9 million from the year ago and reflected an expense ratio of 29.7% compared with 32.1% in 2008. General and administrative expenses totaled $32.1 million compared with $15.0 million in 2008 and reflected a stable general and administrative expense ratio of 3.5% for both years.
Income from operations totaled $101.0 million in 2009, up from $21.4 million in 2008. Results reflected a full year 2009 combined ratio of 95.9% compared with 94.8% in 2008.
Other Matters
Total assets of $2.6 billion at year end 2009 compared with $2.1 billion for year end 2008. Total assets included total investments of $1.7 billion in 2009, up from $1.1 billion in 2008. Total investable assets, which includes total investments, cash, restricted cash, cash equivalents and the loan to a related party, increased to $2.1 billion from $1.8 billion at year end 2008. Shareholders' equity as of year end 2009 totaled $676.5 million up from $509.8 million at year end 2008.
(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 Holdings, Ltd. 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: http://ir.maiden.bm
A replay of the conference call will be available beginning at 1:00 p.m. Atlantic Time (12:00 p.m. ET) on Thursday, March 4, 2010 through March 11, 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: 58311669; or access http://ir.maiden.bm/.
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, 2008 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.
Income Statement
(in thousands (000's), except per share data)
For the For the
Three Three For the For the
Months Months Year Year
Ended Ended Ended Ended
December December December December
31, 2009 31, 2008 31, 2009 31, 2008
Revenues:
Gross premiums written $247,333 $340,525 $1,048,676 $727,395
----------- ----------- ----------- -----------
Net premiums written $234,070 $340,525 $1,030,374 $727,395
Decrease (increase) in unearned
premiums 14,566 (176,681) (110,455) (307,313)
----------- ----------- ----------- -----------
Net earned premium 248,636 163,844 919,919 420,082
Net investment income 16,807 12,894 62,957 37,240
Net realized investment gains
(losses) 732 4,819 270 (37,555)
----------- ----------- ----------- -----------
Total revenues 266,175 181,557 983,146 419,767
----------- ----------- ----------- -----------
Expenses:
Net loss and loss adjustment
expenses 146,145 115,322 608,613 263,682
Commission and other acquisition
expenses 81,821 34,644 241,429 119,703
General and administrative expenses 9,409 9,337 32,135 14,973
----------- ----------- ----------- -----------
Total expenses 237,375 159,303 882,177 398,358
Income from operations 28,800 22,254 100,969 21,409
Other income(expense)
Amortization of intangible assets (1,675) (1,253) (6,590) (1,253)
Foreign exchange and other gain
(loss) 53 (998) 2,454 (1,362)
Subordinated obligation interest
expense (9,115) -- (34,431) --
----------- ----------- ----------- -----------
(10,737) (2,251) (38,567) (2,615)
Income before income taxes 18,063 20,003 62,402 18,794
Income taxes:
Current tax expense -- -- -- --
Deferred tax expense 1,344 -- 1,344 --
----------- ----------- ----------- -----------
Income tax expense 1,344 -- 1,344 --
----------- ----------- ----------- -----------
Net income $16,719 $20,003 $61,058 $18,794
=========== =========== =========== ===========
Operating earnings (1) $17,609 $19,071 $64,924 $60,600
=========== =========== =========== ===========
Basic earnings per common share $0.24 $0.34 $0.88 $0.32
=========== =========== =========== ===========
Diluted earnings per common share $0.24 $0.34 $0.87 $0.32
=========== =========== =========== ===========
Basic operating earnings per common
share $0.25 $0.32 $0.93 $1.02
=========== =========== =========== ===========
Diluted operating earnings per
common share $0.25 $0.32 $0.93 $1.02
=========== =========== =========== ===========
Dividends declared per common share $0.06 $0.06 $0.25 $0.21
=========== =========== =========== ===========
Weighted average number of basic
shares outstanding 70,288,602 58,734,106 69,646,804 59,344,912
Weighted average number of diluted
shares outstanding 70,791,229 58,734,106 70,060,197 59,344,912
Net Loss and loss adjustment expense
ratio 58.8% 70.4% 66.2% 62.8%
Commission and other acquisition
expense ratio 32.9% 21.1% 26.2% 28.5%
General and administrative expense
ratio 3.8% 5.7% 3.5% 3.5%
----------- ----------- ----------- -----------
Combined ratio 95.5% 97.2% 95.9% 94.8%
=========== =========== =========== ===========
Annualized return on equity 9.9% 16.1% 10.3% 3.6%
Annualized return on equity on
operating earnings 10.4% 13.5% 10.9% 11.1%
Maiden Holdings, Ltd.
Balance Sheet
(in thousands (000's), except per share data)
31-Dec-09 31-Dec-08
Assets
Fixed maturities,
available-for-sale, at fair
value (amortized cost
$1,623,382; $1,163,926) $1,661,692 $1,119,955
Other investments, at fair
value (cost $5,684; $5,818) 5,549 5,291
----------- -----------
Total investments 1,667,241 1,125,246
Cash and cash equivalents 107,396 131,897
Restricted cash and cash
equivalents 144,944 409,277
Accrued investment income 11,405 10,293
Reinsurance balances
receivable, net 208,495 71,895
Prepaid reinsurance 28,752 --
Losses recoverable - unpaid
losses 11,984 --
Loan to related party 167,975 167,975
Deferred commission and other
acquisition costs 172,983 104,470
Other assets 11,818 2,617
Intangible assets 51,284 55,147
Goodwill 52,617 49,747
----------- -----------
Total Assets $2,636,894 $2,128,564
=========== ===========
Liabilities and Shareholders'
Equity
Liabilities
Loss and loss adjustment
expense reserves $1,006,320 $897,656
Unearned premiums 583,478 444,479
Accrued expenses and other
liabilities 60,044 44,024
Securities sold under
agreements to repurchase, at
contract value 95,401 232,646
Subordinated obligation to
capital trust - related party 215,125 --
----------- -----------
Total Liabilities 1,960,368 1,618,805
----------- -----------
Shareholders' Equity:
Common shares 713 596
Additional paid-in capital 576,086 530,519
Treasury stock (3,801) (3,801)
Accumulated other
comprehensive income (loss) 32,747 (44,499)
Retained earnings 70,781 26,944
----------- -----------
Total Shareholders' Equity 676,526 509,759
----------- -----------
Total Liabilities and
Shareholders' Equity $2,636,894 $2,128,564
=========== ===========
Book value per share $9.62 $8.70
Common shares outstanding 70,291,289 58,587,664
Maiden Holdings, Ltd.
Non - GAAP Financial Measure
(in thousands (000's), except per share data)
(Unaudited)
For the For the
Three Three For the For the
Months Months Year Year
Ended Ended Ended Ended
December December December December
31, 2009 31, 2008 31, 2009 31, 2008
Reconciliation of net income to
net operating earnings:
Net income $16,719 $20,003 $61,058 $18,794
Add (subtract)
Net realized investment (gains)
losses (732) (4,819) (270) 37,555
Foreign exchange and other
(gains) losses (53) 998 (2,454) 1,362
Amortization of intangibles 1,675 1,253 6,590 1,253
Non-recurring general and
administrative expenses
relating to acquisition of GMAC
Re 1,636 1,636
-------- -------- -------- --------
Operating earnings (1) $17,609 $19,071 $64,924 $60,600
======== ======== ======== ========
Operating earnings per common
share:
Basic earnings per share $0.25 $0.32 $0.93 $1.02
Diluted earnings per share $0.25 $0.32 $0.93 $1.02
(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, non-recurring general and
admin expenses and amortization of intangible assets 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.
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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