Press Release
Aug 10, 2009 (GlobeNewswire via COMTEX News Network) --
* Net Income of $16.3 Million * Net Operating Earnings of $14.0 Million * Book Value Per Share Increased by 10.5% to $8.61 At June 30, 2009
HAMILTON, Bermuda, Aug. 10, 2009 (GLOBE NEWSWIRE) -- Maiden Holdings, Ltd. (Nasdaq:MHLD) today reported net income of $16.3 million and net operating earnings(1) of $14.0 million compared to net income and net operating earnings(1) of $13.8 million for the three months ended June 30, 2008. Net written premium for the quarter ended June 30, 2009 was $238.4 million.
Art Raschbaum, President and CEO of Maiden Holdings, Ltd, said "We are pleased with second quarter performance. Client and prospect acceptance remains high and the Maiden/GMAC RE integration is virtually complete. Highlights from the quarter include strong growth in shareholders' equity, continued improvement in investment earnings, underwriting results at near targeted levels, and written and earned premium at expected volumes. While we have made progress in investing available cash, earnings still do not yet reflect the full "run-rate" potential. We expect continued growth in investment income in coming months to further strengthen earnings as we continue to carefully invest the Company's cash."
For the six months ended June 30, 2009 the Company reported net income of $29.4 million and net operating earnings of $30.8 million compared to net income of $26.3 million and net operating earnings of $26.1 million for the six months ended June 30, 2008. Net written premium for the six months ended June 30, 2009 was $574.9 million.
Shareholders' equity was $605.4 million. Book value per share at June 30, 2009 was $8.61, an increase of 10.5% from $7.79 at March 31, 2009.
Second Quarter 2009 Highlights: * Net written premium for the second quarter of 2009 was $238.4 million ($171.3 million in 2008) * Earnings for the second quarter of 2009 were $16.3 million ($13.8 million in 2008) * Net operating earnings for the second quarter of 2009 were $14.0 million ($13.8 million in 2008) * Annualized return on equity on earnings for the second quarter of 2009 was 11.3% (10.4% in 2008) * Annualized return on equity on net operating earnings for the second quarter of 2009 was 9.7% (10.4% in 2008) * The combined ratio for the second quarter of 2009 was 96.4% (92.2% in 2008) * Quarterly earnings per basic share was $0.23 ($0.23 in 2008) * Quarterly net operating earnings per basic share was $.20 ($0.23 in 2008) * Book value per share was $8.61 as of June 30, 2009.
Second Quarter 2009 Results:
Revenue:
Net written premium for the three months ended June 30, 2009 increased by $67.1 million, or 39.2%, to $238.3 million, compared to $171.2 million for the three months ended June 30, 2008. In the second quarter of 2008, net written premium included a non-recurring assumed unearned premium portfolio of $82 million.
Net earned premium for the three months ended June 30, 2009 increased by $146.5 million, or 189%, to $223.8 million, compared to $77.3 million for the three months ended June 30, 2008
Net investment income for the three months ended June 30, 2009 was $15.1 million, an increase of $7.3 million or 93.6% from $7.8 million in the three months ended June 30, 2008. Net realized investment gains were $1.5 million for the three months ended June 30, 2009 compared to $0.04 million in the three months ended June 30, 2008.
Expenses:
For the three months ended June 30, 2009, the Company's loss and loss adjustment expenses were $151.1 million compared to $43.6 million for the three months ended June 30, 2008. The Company's loss ratio for the three months ended June 30, 2009 was 67.5% compared to 56.4% for the three months ended June 30, 2008.
Commission, acquisition expenses together with general and administrative expenses for the three months ended June 30, 2009 were $64.8 million compared to $27.7 million for the three months ended June 30, 2008. The Company's expense ratio for the three months ended June 30, 2009 was 29.0% compared to 35.8% for the three months ended June 30, 2008.
The Company's combined ratio for the three months ended June 30, 2009 was 96.4% compared to 92.2% for the three months ended June 30, 2008.
Other Matters:
Shareholders' equity as of June 30, 2009 was $605.4 million compared to $509.8 million as of December 31, 2008. During the second quarter, the Board of Directors declared a dividend of $0.06 per share. Book value per share as of June 30, 2009 was $8.61.
As of June 30, 2009 the Company's debt-to-capitalization ratio was 26.2% as a result of the 30-year trust preferred securities issuance.
Conference Call:
On Monday, August 10, at 3:00 p.m. Atlantic Time (2:00 p.m. ET), the Company will hold a conference call regarding its second quarter earnings and year to date results:
Toll Dial-in (International Callers): 719.325.4860 Toll-free Dial-in: 877.440.5787 Webcast: http://ir.maiden.bm
In order to participate in the conference call, you must register at http://ir.maiden.bm. At the time of the call, any slides will be available for reference at http://ir.maiden.bm.
A replay of the conference call will be available starting at 6:00 p.m. Atlantic Time (5:00 p.m. ET) on Monday, August 10, 2009 through Monday, August 17, 2009 by dialing toll 719.457.0820 or toll-free 888.203.1112. The passcode for the replay is 4145736. Replay of the webcast will also be available at 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 Statement on Form 10-K for the year ended December 31, 2008. 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)
(Unaudited)
For the For the
Three Three For the Six For the Six
Months Ended Months Ended Months Ended Months Ended
June 30, June 30, June 30, June 30,
2009 2008 2009 2008
Revenues:
Premium income:
Net premiums
written $ 238,356 $ 171,251 $ 574,904 $ 273,683
Change in unearned
premiums (14,515) (93,913) (140,971) (131,040)
----------- ----------- ----------- -----------
Net earned premium 223,841 77,338 433,933 142,643
Net investment
income 15,113 7,763 29,372 15,372
Net realized
investment gains
(losses) 1,534 39 (396) 163
----------- ----------- ----------- -----------
Total revenues 240,488 85,140 462,909 158,178
----------- ----------- ----------- -----------
Expenses:
Loss and loss
adjustment
expenses 151,057 43,610 297,345 81,446
Commission and
other acquisition
expenses 57,664 25,498 104,295 46,758
General and
administrative
expenses 7,133 2,236 14,667 3,662
----------- ----------- ----------- -----------
Total expenses 215,854 71,344 416,307 131,866
Income from
operations 24,634 13,796 46,602 26,312
Other income
(expense)
Amortization of
intangible assets (1,675) -- (3,239) --
Foreign exchange
gain (loss) 2,404 (4) 2,191 (4)
Trust preferred
interest (9,112) -- (16,202) --
----------- ----------- ----------- -----------
(8,383) (4) (17,250) (4)
Net income $ 16,251 $ 13,792 $ 29,352 $ 26,308
=========== =========== =========== ===========
Operating
earnings (1) $ 13,988 $ 13,757 $ 30,796 $ 26,149
=========== =========== =========== ===========
Basic earnings
per common share $ 0.23 $ 0.23 $ 0.43 $ 0.44
=========== =========== =========== ===========
Diluted earnings
per common share $ 0.23 $ 0.23 $ 0.42 $ 0.44
=========== =========== =========== ===========
Basic operating
earnings per
common share $ 0.20 $ 0.23 $ 0.45 $ 0.44
=========== =========== =========== ===========
Diluted operating
earnings per
common share $ 0.20 $ 0.23 $ 0.44 $ 0.44
=========== =========== =========== ===========
Dividends declared
per common share $ 0.06 $ 0.05 $ 0.12 $ 0.10
=========== =========== =========== ===========
Weighted average
number of basic
shares outstanding 70,287,664 59,550,000 68,994,846 59,550,000
Weighted average
number of basic
and diluted shares
outstanding 70,667,099 59,550,000 69,310,704 59,550,000
Combined ratio 96.4% 92.2% 95.9% 92.4%
Annualized return
on equity 11.3% 10.4% 10.6% 9.8%
Annualized return
on equity on
operating earnings 9.7% 10.4% 11.1% 9.8%
Maiden Holdings, Ltd.
Balance Sheet
(in thousands (000's), except per share data)
(unaudited)
(Unaudited)
30-Jun-09 31-Dec-08
Assets
Fixed maturities, available-for-sale, at fair
value (amortized cost $1,307,221;
$1,163,926) $ 1,294,934 $ 1,119,955
Other investments, at fair value (cost
$5,814 ; $5,818) 5,392 5,291
----------- -----------
Total investments 1,300,326 1,125,246
Cash and cash equivalents 150,777 131,897
Restricted cash and cash equivalents 311,883 409,277
Accrued investment income 10,601 10,293
Reinsurance balances receivable, net 230,519 71,895
Loan to related party 167,975 167,975
Deferred commission and other
acquisition costs 171,395 104,470
Other assets 32,474 2,617
Intangible assets 51,434 55,147
Goodwill 49,747 49,747
----------- -----------
Total Assets $ 2,477,131 $ 2,128,564
=========== ===========
Liabilities and Shareholders' Equity
Liabilities
Loss and loss adjustment expense reserves $ 939,758 $ 895,608
Unearned premiums 585,451 444,479
Accrued expenses and other liabilities 22,630 46,072
Securities sold under agreements to
repurchase, at contract value 108,797 232,646
Trust preferred securities 215,096 --
----------- -----------
Total Liabilities 1,871,732 1,618,805
----------- -----------
Shareholders' Equity:
Common shares 713 596
Additional paid-in capital 575,723 530,519
Treasury stock (3,801) (3,801)
Accumulated other comprehensive loss (15,097) (44,499)
Retained earnings 47,861 26,944
----------- -----------
Total Shareholders' Equity 605,399 509,759
----------- -----------
Total Liabilities and
Shareholders' Equity $ 2,477,131 $ 2,128,564
=========== ===========
Book value per share $ 8.61 $ 8.70
Common shares outstanding 70,287,664 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 Six For the Six
Months Ended Months Ended Months Ended Months Ended
June 30, June 30, June 30, June 30,
2009 2008 2009 2008
Reconciliation of
net income to net
operating
earnings:
Net income $ 16,251 $ 13,792 $ 29,352 $ 26,308
Less: Net realized
gains
(losses) 1,534 39 (396) 163
Add: Foreign
exchange
(gain) loss (2,404) 4 (2,191) 4
Amortization
of
intangibles 1,675 -- 3,239 --
----------- ---------- ----------- ----------
Operating
earnings (1) $ 13,988 $ 13,757 $ 30,796 $ 26,149
=========== ========== =========== ==========
Operating earnings
per common share:
Basic earnings
per share $ 0.20 $ 0.23 $ 0.45 $ 0.44
Diluted earnings
per share $ 0.20 $ 0.23 $ 0.44 $ 0.44
(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 gains and losses 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.
Maiden Holdings, Ltd. Hilly Gross 441.292.7090 irelations@maiden.bm
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