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Title of Securities to be Registered
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Amount to be
Registered |
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Maximum
Offering Price Per Share |
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Proposed Maximum
Aggregate Offering Price |
| | |
Amount of
Registration Fee(1) |
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6.700% Non-Cumulative Preference Shares, Series D
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| | | | 6,000,000 | | | | | | $ | 25.00 | | | | | | $ | 150,000,000 | | | | | | $ | 17,385 | | |
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Price to Public
|
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Underwriting
Discounts and Commissions |
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Proceeds, before
expenses, to Maiden |
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Per Share
|
| | | $ | 25.00 | | | | | $ | 0.7875 | | | | | $ | 24.2125 | | |
Total
|
| | | $ | 150,000,000 | | | | | $ | 4,725,000 | | | | | $ | 145,275,000 | | |
| BofA Merrill Lynch | | |
Morgan Stanley
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UBS Investment Bank
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| FBR | | |
JMP Securities
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Compass Point
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Prospectus Supplement
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Prospectus
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For the Three Months Ended
March 31, 2017 |
| |
For the Year Ended
December 31, 2016 |
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Net
Premiums Written |
| |
% of Total
|
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Net
Premiums Written |
| |
% of Total
|
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| | |
(in millions)
|
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(in millions)
|
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Diversified Reinsurance
|
| | | $ | 327.5 | | | | | | 36% | | | | | $ | 766.1 | | | | | | 29% | | |
AmTrust Reinsurance
|
| | | | 573.0 | | | | | | 64% | | | | | | 1,888.4 | | | | | | 71% | | |
Total
|
| | | $ | 900.5 | | | | | | 100% | | | | | $ | 2,654.5 | | | | | | 100% | | |
|
| | |
For the Three Months
Ended March 31, |
| |
For the Year Ended December 31,
|
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2017
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2016
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2016
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2015
|
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2014
|
| |
2013
|
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2012
|
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($ in millions, except per share amounts and ratios)
|
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Summary Consolidated Income Statement Data: | | | | | | | | | |||||||||||||||||||||||||||||||||||
Gross premiums written
|
| | | $ | 923.4 | | | | | $ | 864.1 | | | | | $ | 2,831.3 | | | | | $ | 2,662.8 | | | | | $ | 2,507.4 | | | | | $ | 2,204.2 | | | | | $ | 2,001.0 | | |
Net premiums written
|
| | | | 900.5 | | | | | | 792.8 | | | | | | 2,655.0 | | | | | | 2,514.1 | | | | | | 2,458.1 | | | | | | 2,096.3 | | | | | | 1,901.3 | | |
Net premiums earned
|
| | | | 709.5 | | | | | | 616.0 | | | | | | 2,568.1 | | | | | | 2,429.1 | | | | | | 2,251.7 | | | | | | 2,000.9 | | | | | | 1,803.8 | | |
Other insurance revenue
|
| | | | 3.8 | | | | | | 4.8 | | | | | | 10.8 | | | | | | 11.5 | | | | | | 13.4 | | | | | | 14.2 | | | | | | 12.9 | | |
Net investment income
|
| | | | 42.1 | | | | | | 36.3 | | | | | | 145.9 | | | | | | 131.1 | | | | | | 117.2 | | | | | | 91.4 | | | | | | 81.2 | | |
Net realized and unrealized gains on investments
|
| | | | 0.9 | | | | | | 2.3 | | | | | | 6.8 | | | | | | 2.5 | | | | | | 1.2 | | | | | | 3.6 | | | | | | 1.9 | | |
Net impairment losses recognized in
earnings |
| | | | — | | | | | | — | | | | | | — | | | | | | (1.1) | | | | | | (2.4) | | | | | | — | | | | | | — | | |
Total revenues
|
| | | $ | 756.3 | | | | | $ | 659.4 | | | | | $ | 2,731.6 | | | | | $ | 2,573.1 | | | | | $ | 2,381.1 | | | | | $ | 2,110.1 | | | | | $ | 1,899.8 | | |
Net loss and loss adjustment expenses
|
| | | | 480.6 | | | | | | 403.6 | | | | | | 1,819.9 | | | | | | 1,633.6 | | | | | | 1,498.3 | | | | | | 1,349.6 | | | | | | 1,262.3 | | |
Commissions and other acquisition
expenses |
| | | | 222.0 | | | | | | 195.1 | | | | | | 773.6 | | | | | | 724.2 | | | | | | 659.3 | | | | | | 556.6 | | | | | | 492.1 | | |
General and administrative expenses
|
| | | | 17.4 | | | | | | 15.5 | | | | | | 67.0 | | | | | | 64.9 | | | | | | 62.5 | | | | | | 58.4 | | | | | | 53.5 | | |
Interest and amortization expenses
|
| | | | 6.9 | | | | | | 7.3 | | | | | | 28.2 | | | | | | 29.1 | | | | | | 30.0 | | | | | | 39.8 | | | | | | 36.7 | | |
Accelerated amortization of debt discount and issuance
cost |
| | | | — | | | | | | — | | | | | | 2.3 | | | | | | — | | | | | | 28.2 | | | | | | — | | | | | | — | | |
Amortization of intangible assets
|
| | | | 0.5 | | | | | | 0.6 | | | | | | 2.4 | | | | | | 2.8 | | | | | | 3.3 | | | | | | 3.8 | | | | | | 4.4 | | |
Foreign exchange and other losses (gains)
|
| | | | 1.9 | | | | | | (0.3) | | | | | | (11.6) | | | | | | (7.8) | | | | | | (4.2) | | | | | | (2.8) | | | | | | (1.6) | | |
Income tax expense
|
| | | | 0.5 | | | | | | 0.8 | | | | | | 1.6 | | | | | | 2.1 | | | | | | 2.2 | | | | | | 1.9 | | | | | | 2.2 | | |
(Loss) income attributable to non-controlling interests
|
| | | | — | | | | | | (0.1) | | | | | | (0.8) | | | | | | (0.2) | | | | | | 0.1 | | | | | | 0.1 | | | | | | 0.1 | | |
Total expenses
|
| | | $ | 729.8 | | | | | $ | 622.5 | | | | | $ | 2,682.6 | | | | | $ | 2,448.7 | | | | | $ | 2,279.7 | | | | | $ | 2,007.4 | | | | | $ | 1,849.7 | | |
Dividends on preference shares
|
| | | | (6.0) | | | | | | (9.7) | | | | | | (33.8) | | | | | | (24.3) | | | | | | (24.3) | | | | | | (14.8) | | | | | | (3.6) | | |
Net income attributable to Maiden shareholders
|
| | | $ | 20.5 | | | | | $ | 27.2 | | | | | $ | 15.2 | | | | | $ | 100.1 | | | | | $ | 77.1 | | | | | $ | 87.9 | | | | | $ | 46.5 | | |
Basic earnings per common share attributable to Maiden
shareholders |
| | | $ | 0.24 | | | | | $ | 0.37 | | | | | $ | 0.20 | | | | | $ | 1.36 | | | | | $ | 1.06 | | | | | $ | 1.21 | | | | | $ | 0.64 | | |
Diluted earnings per common share attributable to Maiden shareholders
|
| | | $ | 0.23 | | | | | $ | 0.35 | | | | | $ | 0.19 | | | | | $ | 1.31 | | | | | $ | 1.04 | | | | | $ | 1.18 | | | | | $ | 0.64 | | |
Dividends declared per common share
|
| | | $ | 0.15 | | | | | $ | 0.14 | | | | | $ | 0.57 | | | | | $ | 0.53 | | | | | $ | 0.46 | | | | | $ | 0.38 | | | | | $ | 0.33 | | |
Selected Consolidated Ratios: | | | | | | | | | |||||||||||||||||||||||||||||||||||
Loss and loss adjustment expense ratio
|
| | | | 67.4% | | | | | | 65.0% | | | | | | 70.6% | | | | | | 66.9% | | | | | | 66.1% | | | | | | 67.0% | | | | | | 69.5% | | |
Commission and other acquisition expense ratio
|
| | | | 31.1% | | | | | | 31.4% | | | | | | 30.0% | | | | | | 29.7% | | | | | | 29.1% | | | | | | 27.6% | | | | | | 27.1% | | |
General and administrative expense ratio
|
| | | | 2.4% | | | | | | 2.5% | | | | | | 2.6% | | | | | | 2.7% | | | | | | 2.8% | | | | | | 2.9% | | | | | | 2.9% | | |
Expense ratio
|
| | | | 33.5% | | | | | | 33.9% | | | | | | 32.6% | | | | | | 32.4% | | | | | | 31.9% | | | | | | 30.5% | | | | | | 30.0% | | |
Combined ratio
|
| | | | 100.9% | | | | | | 98.9% | | | | | | 103.2% | | | | | | 99.3% | | | | | | 98.0% | | | | | | 97.5% | | | | | | 99.5% | | |
|
| | |
As of March 31,
|
| |
As of December 31,
|
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| | |
2017
|
| |
2016
|
| |
2016
|
| |
2015
|
| |
2014
|
| |
2013
|
| |
2012
|
| | | |||||||||||||||||||||||||
| | |
($ in millions, except per share amounts)
|
| | | |||||||||||||||||||||||||||||||||||||||||||
Summary Consolidated Balance Sheet Data: | | | | | | | | | | | |||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents
|
| | | $ | 83.5 | | | | | $ | 85.2 | | | | | $ | 45.7 | | | | | $ | 89.6 | | | | | $ | 108.1 | | | | | $ | 139.8 | | | | | $ | 81.5 | | | | | ||||
Restricted cash and cash equivalents
|
| | | | 109.7 | | | | | | 145.5 | | | | | | 103.8 | | | | | | 242.9 | | | | | | 284.4 | | | | | | 77.4 | | | | | | 132.3 | | | | | ||||
Total investments at fair value
|
| | | | 4,732.0 | | | | | | 4,325.9 | | | | | | 4,736.9 | | | | | | 4,127.7 | | | | | | 3,469.5 | | | | | | 3,167.2 | | | | | | 2,621.6 | | | | | ||||
Reinsurance balances receivable, net
|
| | | | 615.6 | | | | | | 598.3 | | | | | | 410.2 | | | | | | 377.3 | | | | | | 513.0 | | | | | | 560.1 | | | | | | 522.6 | | | | | ||||
Loan to related party
|
| | | | 168.0 | | | | | | 168.0 | | | | | | 168.0 | | | | | | 168.0 | | | | | | 168.0 | | | | | | 168.0 | | | | | | 168.0 | | | | | ||||
Deferred commission and other acquisition expenses
|
| | | | 472.5 | | | | | | 446.1 | | | | | | 424.6 | | | | | | 397.5 | | | | | | 372.5 | | | | | | 304.9 | | | | | | 270.7 | | | | | ||||
Total assets
|
| | | | 6,557.0 | | | | | | 6,119.7 | | | | | | 6,252.3 | | | | | | 5,703.6 | | | | | | 5,153.7 | | | | | | 4,700.4 | | | | | | 4,130.0 | | | | | ||||
Reserve for loss and loss adjustment
expenses |
| | | | 2,991.6 | | | | | | 2,572.4 | | | | | | 2,896.5 | | | | | | 2,510.1 | | | | | | 2,271.3 | | | | | | 1,957.8 | | | | | | 1,740.3 | | | | | ||||
Unearned premiums
|
| | | | 1,670.9 | | | | | | 1,571.4 | | | | | | 1,475.5 | | | | | | 1,354.6 | | | | | | 1,207.8 | | | | | | 1,034.8 | | | | | | 936.5 | | | | | ||||
Senior notes, net
|
| | | | 351.5 | | | | | | 350.0 | | | | | | 351.4 | | | | | | 349.9 | | | | | | 349.6 | | | | | | 349.2 | | | | | | 201.5 | | | | | ||||
Junior subordinated debt, net
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 124.3 | | | | | | 124.1 | | | | | ||||
Total liabilities
|
| | | | 5,186.9 | | | | | | 4,659.4 | | | | | | 4,891.1 | | | | | | 4,354.5 | | | | | | 3,912.5 | | | | | | 3,576.1 | | | | | | 3,114.4 | | | | | ||||
Total Maiden shareholders’ equity
|
| | | | 1,369.8 | | | | | | 1,459.0 | | | | | | 1,360.8 | | | | | | 1,347.8 | | | | | | 1,240.7 | | | | | | 1,123.8 | | | | | | 1,015.2 | | | | | ||||
Book value per common share
|
| | | $ | 12.19 | | | | | $ | 13.23 | | | | | $ | 12.12 | | | | | $ | 11.77 | | | | | $ | 12.69 | | | | | $ | 11.14 | | | | | $ | 11.96 | | | | | ||||
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | |
Three Months Ended
March 31, |
| |
Year Ended December 31,
|
| ||||||||||||||||||||||||||||||||||||
| | |
2017
|
| |
2016
|
| |
2016
|
| |
2015
|
| |
2014
|
| |
2013
|
| |
2012
|
| |||||||||||||||||||||
Ratio of Earnings to Fixed Charges and Preference Share Dividends(1)
|
| | | | 2.63x | | | | | | 2.65x | | | | | | 1.26x | | | | | | 2.91x | | | | | | 2.98x(2) | | | | | | 2.65x | | | | | | 2.21x | | |
| | |
As of March 31, 2017
|
| |||||||||
| | |
Actual
|
| |
As adjusted(1)
|
| ||||||
| | |
($ in thousands, except share and per
share data) |
| |||||||||
Debt: | | | | ||||||||||
Senior notes
|
| | | $ | 362,500 | | | | | $ | 262,500 | | |
Total debt
|
| | | $ | 362,500 | | | | | $ | 262,500 | | |
Equity: | | | | ||||||||||
Common shares ($0.01 par value; 87,641,349 shares issued; 86,553,324 shares outstanding)
|
| | | $ | 876 | | | | | $ | 876 | | |
Series A Preference Shares (6,000,000 shares of Series A Preference Shares issued and outstanding)
|
| | | | 150,000 | | | | | | 150,000 | | |
Series C Preference Shares (6,600,000 shares of Series C Preference Shares issued and outstanding)
|
| | | | 165,000 | | | | | | 165,000 | | |
Series D Preference Shares offered hereby ($0.01 par value; no shares issued actual; 6,000,000 shares issued and outstanding as adjusted)
|
| | | | — | | | | | | 150,000 | | |
Additional paid-in capital
|
| | | | 750,694 | | | | | | 745,669 | | |
Accumulated other comprehensive income
|
| | | | 15,591 | | | | | | 15,591 | | |
Retained earnings
|
| | | | 293,164 | | | | | | 290,327 | | |
Treasury shares, at cost (1,088,025 shares)
|
| | | | (5,566) | | | | | | (5,566) | | |
Total Maiden shareholders’ equity
|
| | | $ | 1,369,759 | | | | | $ | 1,511,897 | | |
Noncontrolling interest in subsidiaries
|
| | | | 338 | | | | | | 338 | | |
Total equity
|
| | | $ | 1,370,097 | | | | | $ | 1,512,235 | | |
Total capitalization
|
| | | $ | 1,732,597 | | | | | $ | 1,774,735 | | |
|
Underwriter
|
| |
Number of
Series D Preference Shares |
| |||
Merrill Lynch, Pierce, Fenner & Smith
Incorporated |
| | | | 1,890,000 | | |
Morgan Stanley & Co. LLC
|
| | | | 1,890,000 | | |
UBS Securities LLC
|
| | | | 1,890,000 | | |
FBR Capital Markets & Co.
|
| | | | 135,000 | | |
JMP Securities LLC
|
| | | | 135,000 | | |
Compass Point Research & Trading LLC
|
| | | | 60,000 | | |
Total
|
| | | | 6,000,000 | | |
|
| | |
Per Share
|
| |
Total
|
| ||||||
Public offering price
|
| | | $ | 25.0000 | | | | | $ | 150,000,000 | | |
Underwriting discount
|
| | | $ | 0.7875 | | | | | $ | 4,725,000 | | |
Proceeds, before expenses, to Maiden
|
| | | $ | 24.2125 | | | | | $ | 145,275,000 | | |
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Three Months Ended
March 31, |
| |
Year Ended December 31,
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2016
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2015
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2015
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2014
|
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2013
|
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2012
|
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2011
|
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Ratio of Earnings to Fixed Charges and Preference Share Dividends(1)
|
| | | | 2.65x | | | | | | 3.49x | | | | | | 2.91x | | | | | | 2.46x(2) | | | | | | 2.65x | | | | | | 2.21x | | | | | | 1.89x(3) | | |