Press Release
HAMILTON, Bermuda, Nov 11, 2008 (GlobeNewswire via COMTEX News Network) -- Maiden Holdings, Ltd. (NASDAQ: MHLD), today reported quarterly operating earnings of $15.02 million for the third quarter ended September 30, 2008. Operating earnings is a non-GAAP financial measure defined by the Company as net income, excluding realized investment gains and losses. Operating earnings per basic share for the third quarter was $0.25. Net written premium for the quarter was $113.2 million. During the third quarter of 2008, the Company incurred a realized loss of $42.5 million on its investment portfolio. The realized loss related primarily to fixed income investments in Lehman Brothers and Washington Mutual. As a result of the realized investment loss, the Company had a net loss of $27.5 million or $0.46 for the third quarter 2008.
Third Quarter and Nine Months 2008 Highlights:
* Net written premium for third quarter 2008 was $113.2 million * Net written premium for nine months ended September 30, 2008 was $386.9 million * Operating earnings of $15.02 million for the quarter ended September 30, 2008 * Operating earnings for nine months ended September 30, 2008 was $41.2 million * Annualized return on equity on operating earnings for the third quarter was 11.7% * The combined ratio for the third quarter was 94.7% * The combined ratio for nine months ended September 30, 2008 was 93.4% * Book value per share was $8.03 as of September 30, 2008
Third Quarter and Nine Months 2008 Results:
Revenue:
Net written premium for the third quarter was $113.2 million and net earned premium was $113.6 million. Net investment income was $9 million, operating earnings for the third quarter was $15.02 million. For the nine months ended September 30, 2008, net written premium was $386.9 million and net earned premium was $256.2 million. Net investment income for the nine months was $24.3 million and operating earnings was $41.2 million. The Company recorded a net loss of $27.5 million for the third quarter and for the nine months ended September 30, 2008 had a net loss of $1.2 million inclusive of the fixed income investment losses.
Expenses:
The Company's loss ratio for the third quarter 2008 was 58.9%. The Company's expense ratio for the third quarter 2008 was 35.8%. The Company's loss ratio for nine months ended September 30, 2008 was 57.9% and the expense ratio was 35.5%.
Other Matters:
Shareholders' equity as of September 30, 2008 was $478.5 million compared to $537.3 million as of December 31, 2007. During the third quarter the Company announced a dividend of $0.05. Book value per share as of September 30, 2008 was $8.03.
During the fourth quarter 2008, a hedge fund in which the Company had an investment commenced liquidation. The Company received a distribution of 962,336 shares of its Common Stock in lieu of a distribution of other assets, representing a distribution of 90% of its holdings in the fund. The shares were valued at $3.95 per share for purposes of this liquidation distribution. The Company will receive the remaining 10% of its holdings in the fund upon the completion of the fund's liquidation. Book value per share with the inclusion of this transaction would be $8.17.
Conference Call:
On Wednesday, November 12, at 3:00 p.m. Atlantic Time (2:00 p.m. ET), the Company will hold a conference call regarding its third quarter earnings and recent acquisition of GMAC RE that can be accessed as follows:
Toll Dial-in (International Callers): 719.325.4793 Toll-free Dial-in: 877.719.9810 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 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 on Wednesday, November 12th, 2008 through Wednesday, November 19th, 2008 by dialing toll 719.457.0820 or toll-free 888.203.1112. The passcode for the replay is 5576448. 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, through Maiden Insurance Company, Ltd., its wholly owned Bermuda reinsurance subsidiary, to small and mid-size 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 Statement
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. The Company undertakes no obligation to publicly update any forward-looking statements.
Maiden Holdings, Ltd.
Income Statement
(in thousands (000's), except per share data)
(Unaudited)
For the For the For the Period from
Three Months Three Months Nine Months May 31 2007
Ended Ended Ended (inception)
Sept 30, Sept 30, Sept 30, to Sept 30,
2008 2007 2008 2007
Revenues:
Premium income:
Net premiums
written $ 113,187 $ 190,801 $ 386,870 $ 190,801
Change in unearned
premiums 408 (127,835) (130,631) (127,835)
----------- ----------- ----------- -----------
Net earned
premium 113,595 62,966 256,239 62,966
Net investment
income 8,974 7,503 24,346 7,562
Net realized
investment gains
(losses) (42,538) 87 (42,375) 87
----------- ----------- ----------- -----------
Total revenues 80,031 70,556 238,210 70,615
----------- ----------- ----------- -----------
Expenses:
Loss and loss
adjustment
expenses 66,915 37,667 148,362 37,667
Commission and
other acquisition
expenses 38,299 20,307 85,057 20,307
Salaries and
benefits 673 211 1,820 211
Foreign exchange
loss 359 1 364 1
Other operating
expenses 1,301 1,030 3,816 1,166
----------- ----------- ----------- -----------
Total expenses 107,547 59,216 239,419 59,352
----------- ----------- ----------- -----------
Net income $ (27,516) $ 11,340 $ (1,209) $ 11,263
=========== =========== =========== ===========
Operating
earnings (1) $ 15,022 $ 11,253 $ 41,166 $ 11,176
=========== =========== =========== ===========
Basic and diluted
earnings per
common share $ (0.46) $ 0.20 $ (0.02) $ 0.25
=========== =========== =========== ===========
Basic and diluted
operating earnings
per common share $ 0.25 $ 0.19 $ 0.69 $ 0.25
=========== =========== =========== ===========
Dividends declared
per common share $ 0.05 $ 0.025 $ 0.15 $ 0.025
=========== =========== =========== ===========
Weighted average
number of basic
and diluted
shares outstanding 59,550,000 57,716,859 59,550,000 44,184,968
Combined ratio 94.7% 94.0% 93.4% 94.3%
Annualized return
on equity on
operating earnings 11.7% 15.4% 10.8% 136.0%
Maiden Holdings, Ltd.
Balance Sheet
(in thousands (000's), except per share data)
(Unaudited)
30-Sep-08 31-Dec-07
Assets
Fixed maturities, available-for-sale, at
fair value (amortized cost
$749,797; $488,765) $ 687,186 $ 474,789
Other investments, at fair value
(cost $10,315; $15,176) 10,071 15,656
----------- -----------
Total investments 697,257 490,445
Cash and cash equivalents 82,443 35,729
Accrued investment income 5,423 3,204
Reinsurance balances receivable, net 98,779 27,990
Loan to related party 167,975 113,542
Prepaid expenses and other assets 420 454
Deferred commission and other
acquisition costs 88,615 44,215
Furniture and equipment, net 63 29
----------- -----------
Total Assets $ 1,140,975 $ 715,608
=========== ===========
Liabilities and Shareholders' Equity
Liabilities
Loss and loss adjustment expense reserves $ 123,621 $ 38,508
Unearned premiums 267,799 137,166
Accrued expenses and other liabilities 4,670 2,589
Due to broker 5,656 --
Securities sold under agreements to
repurchase, at contract value 260,775 --
----------- -----------
Total Liabilities 662,521 178,263
----------- -----------
Shareholders' Equity:
Common shares 596 596
Additional paid-in capital 530,258 529,647
Accumulated other comprehensive loss (62,856) (13,496)
Retained earnings 10,456 20,598
----------- -----------
Total Shareholders' Equity 478,454 537,345
----------- -----------
Total Liabilities and
Shareholders' Equity $ 1,140,975 $ 715,608
=========== ===========
Book value per share $ 8.03 $ 9.02
Common shares outstanding 59,550,000 59,550,000
Maiden Holdings, Ltd.
Income Statement
(in thousands (000's), except per share data)
(Unaudited)
For the For the For the Period from
Three Months Three Months Nine Months May 31 2007
Ended Ended Ended (inception)
Sept 30, Sept 30, Sept 30, to Sept 30,
2008 2007 2008 2007
Reconciliation of
net income to
operating
earnings:
Net income $ (27,516) $ 11,340 $ (1,209) $ 11,263
Less: Net realized
gains (losses)
net of taxes (42,538) 87 (42,375) 87
----------- ----------- ----------- -----------
Operating
earnings (1) $ 15,022 $ 11,253 $ 41,166 $ 11,176
=========== =========== =========== ===========
Operating earnings
per common share:
Basic and diluted
earnings
per share $ 0.25 $ 0.19 $ 0.69 $ 0.25
(1) Net operating income is a non-GAAP financial measure defined by
the Company as net income excluding realized investment gains
and losses, which provides a useful indicator of trends in the
Company's underlying operations.
This news release was distributed by GlobeNewswire, www.globenewswire.com
SOURCE: Maiden Holdings, Ltd.
Maiden Holdings, Ltd.
Devora M. Goldenberg
441.292.7090
irelations@maiden.bm
(C) Copyright 2008 GlobeNewswire, Inc. All rights reserved.
News Provided by COMTEX