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Document and Entity Information
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6 Months Ended | |
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Jun. 30, 2011
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Aug. 01, 2011
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| Document Type | 10-Q | |
| Amendment Flag | false | |
| Document Period End Date | Jun. 30, 2011 | |
| Document Fiscal Year Focus | 2011 | |
| Document Fiscal Period Focus | Q2 | |
| Trading Symbol | MHLD | |
| Entity Registrant Name | MAIDEN HOLDINGS, LTD. | |
| Entity Central Index Key | 0001412100 | |
| Current Fiscal Year End Date | --12-31 | |
| Entity Filer Category | Accelerated Filer | |
| Entity Common Stock, Shares Outstanding | 72,107,197 |
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- Definition
If the value is true, then the document as an amendment to previously-filed/accepted document. No definition available.
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- Definition
End date of current fiscal year in the format --MM-DD. No definition available.
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- Definition
This is focus fiscal period of the document report. For a first quarter 2006 quarterly report, which may also provide financial information from prior periods, the first fiscal quarter should be given as the fiscal period focus. Values: FY, Q1, Q2, Q3, Q4, H1, H2, M9, T1, T2, T3, M8, CY. No definition available.
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- Definition
This is focus fiscal year of the document report in CCYY format. For a 2006 annual report, which may also provide financial information from prior periods, fiscal 2006 should be given as the fiscal year focus. Example: 2006. No definition available.
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- Definition
The end date of the period reflected on the cover page if a periodic report. For all other reports and registration statements containing historical data, it is the date up through which that historical data is presented. If there is no historical data in the report, use the filing date. The format of the date is CCYY-MM-DD. No definition available.
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- Definition
The type of document being provided (such as 10-K, 10-Q, N-1A, etc). The document type is limited to the same value as the supporting SEC submission type, minus any "/A" suffix. The acceptable values are as follows: S-1, S-3, S-4, S-11, F-1, F-3, F-4, F-9, F-10, 6-K, 8-K, 10, 10-K, 10-Q, 20-F, 40-F, N-1A, 485BPOS, 497, NCSR, N-CSR, N-CSRS, N-Q, 10-KT, 10-QT, 20-FT, POS AM and Other. No definition available.
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- Definition
A unique 10-digit SEC-issued value to identify entities that have filed disclosures with the SEC. It is commonly abbreviated as CIK. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
Indicate number of shares outstanding of each of registrant's classes of common stock, as of latest practicable date. Where multiple classes exist define each class by adding class of stock items such as Common Class A [Member], Common Class B [Member] onto the Instrument [Domain] of the Entity Listings, Instrument No definition available.
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- Definition
Indicate whether the registrant is one of the following: (1) Large Accelerated Filer, (2) Accelerated Filer, (3) Non-accelerated Filer, or (4) Smaller Reporting Company. Definitions of these categories are stated in Rule 12b-2 of the Exchange Act. This information should be based on the registrant's current or most recent filing containing the related disclosure. No definition available.
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- Definition
The exact name of the entity filing the report as specified in its charter, which is required by forms filed with the SEC. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
Trading symbol of an instrument as listed on an exchange. No definition available.
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- Definition
Accrued Expenses and Other Liabilities No definition available.
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- Definition
Sum of the carrying amounts of all goodwill and intangible assets of the balance sheet date, net of accumulated amortization and impairment charges. No definition available.
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- Definition
Interest, dividends, rents, ancillary and other revenues earned but not yet received by the entity on its investments. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
Accumulated change in equity from transactions and other events and circumstances from non-owner sources, net of tax effect, at period end. Excludes Net Income (Loss), and accumulated changes in equity from transactions resulting from investments by owners and distributions to owners. Includes foreign currency translation items, certain pension adjustments, unrealized gains and losses on certain investments in debt and equity securities, other than temporary impairment (OTTI) losses related to factors other than credit losses on available-for-sale and held-to-maturity debt securities that an entity does not intend to sell and it is not more likely than not that the entity will be required to sell before recovery of the amortized cost basis, as well as changes in the fair value of derivatives related to the effective portion of a designated cash flow hedge. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
Value received from shareholders in common stock-related transactions that are in excess of par value or stated value and amounts received from other stock-related transactions. Includes only common stock transactions (excludes preferred stock transactions). May be called contributed capital, capital in excess of par, capital surplus, or paid-in capital. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
Sum of the carrying amounts as of the balance sheet date of all assets that are recognized. Assets are probable future economic benefits obtained or controlled by an entity as a result of past transactions or events. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
For an unclassified balance sheet, total of debt securities categorized neither as held-to-maturity nor trading. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
Includes currency on hand as well as demand deposits with banks or financial institutions. It also includes other kinds of accounts that have the general characteristics of demand deposits in that the Entity may deposit additional funds at any time and also effectively may withdraw funds at any time without prior notice or penalty. Cash equivalents, excluding items classified as marketable securities, include short-term, highly liquid investments that are both readily convertible to known amounts of cash, and so near their maturity that they present minimal risk of changes in value because of changes in interest rates. Generally, only investments with original maturities of three months or less qualify under that definition. Original maturity means original maturity to the entity holding the investment. For example, both a three-month US Treasury bill and a three-year Treasury note purchased three months from maturity qualify as cash equivalents. However, a Treasury note purchased three years ago does not become a cash equivalent when its remaining maturity is three months. Compensating balance arrangements that do not legally restrict the withdrawal or usage of cash amounts may be reported as Cash and Cash Equivalents, while legally restricted deposits held as compensating balances against borrowing arrangements, contracts entered into with others, or company statements of intention with regard to particular deposits are not generally reported as cash and cash equivalents. Includes cash and cash equivalents associated with the entity's continuing operations. Excludes cash and cash equivalents associated with the disposal group (and discontinued operation). Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
Represents the caption on the face of the balance sheet to indicate that the entity has entered into (1) purchase or supply arrangements that will require expending a portion of its resources to meet the terms thereof, and (2) is exposed to potential losses or, less frequently, gains, arising from (a) possible claims against a company's resources due to future performance under contract terms, and (b) possible losses or likely gains from uncertainties that will ultimately be resolved when one or more future events that are deemed likely to occur do occur or fail to occur. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
Aggregate par or stated value of issued nonredeemable common stock (or common stock redeemable solely at the option of the issuer). This item includes treasury stock repurchased by the entity. Note: elements for number of nonredeemable common shares, par value and other disclosure concepts are in another section within stockholders' equity. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
Net amount of deferred policy acquisition costs capitalized on contracts remaining in force as of the balance sheet date. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
Funds held by the ceding insurer on behalf the reinsurer, including funds held in trust, under reinsurance treaties or contracts with the assuming insurer as security for the payment of the obligations thereunder, which represent an asset for the reinsurer. There is another concept for the corresponding liability of the ceding insurer. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
Sum of the carrying amounts as of the balance sheet date of all investments. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Details
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- Definition
Including the current and noncurrent portions, carrying value as of the balance sheet date of long-term debt (with maturities initially due after one year or beyond the operating cycle if longer) identified as Junior Subordinated Notes, which have a lower priority than senior instruments. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
Sum of the carrying amounts as of the balance sheet date of all liabilities that are recognized. Liabilities are probable future sacrifices of economic benefits arising from present obligations of an entity to transfer assets or provide services to other entities in the future. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Details
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- Definition
Total of all Liabilities and Stockholders' Equity items (or Partners' Capital, as applicable), including the portion of equity attributable to noncontrolling interests, if any. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
The amount needed to reflect the estimated ultimate cost of settling claims relating to insured events that have occurred on or before the balance sheet date, whether or not reported to the insurer at that date. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
For an unclassified balance sheet, reflects the carrying amount of unpaid loan amounts due from related parties at the balance sheet date. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
Total of all stockholders' equity (deficit) items, net of receivables from officers, directors, owners, and affiliates of the entity which is directly or indirectly attributable to that ownership interest in subsidiary equity which is not attributable to the parent (noncontrolling interest, minority interest). Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
The aggregate carrying amounts, as of the balance sheet date, of assets not separately disclosed in the balance sheet. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
Other investments not otherwise specified in the taxonomy. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
The carrying amount as of the balance sheet date due the entity from (a) agents and insureds, (b) uncollected premiums and (c) others, net of the allowance for doubtful accounts. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
The unexpired portion of premiums ceded on policies in force as of the balance sheet date. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
The known and estimated amount recoverable as of the balance sheet date from reinsurers for claims paid or incurred by the ceding insurer and associated claims settlement expenses, including estimated amounts for claims incurred but not reported, and policy benefits, net of any related valuation allowance. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
The carrying amounts of cash and cash equivalent items which are restricted as to withdrawal or usage. Restrictions may include legally restricted deposits held as compensating balances against borrowing arrangements, contracts entered into with others, or entity statements of intention with regard to particular deposits; however, time deposits and short-term certificates of deposit are not generally included in legally restricted deposits. Excludes compensating balance arrangements that are not agreements which legally restrict the use of cash amounts shown on the balance sheet. This element is for unclassified presentations; for classified presentations there is a separate and distinct element. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
The cumulative amount of the reporting entity's undistributed earnings or deficit. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
The carrying value as of the balance sheet date of securities that an institution sells and agrees to repurchase (the identical or substantially the same securities) as a seller-borrower at a specified date for a specified price, also known as a repurchase agreement, or repo. Most repos involve obligations of the federal government or its agencies, but other financial instruments, such as commercial paper, banker's acceptances, and negotiable certificates of deposit, are sometimes used in repos. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
Including the current and noncurrent portions, carrying value as of the balance sheet date of Notes with the highest claim on the assets of the issuer in case of bankruptcy or liquidation (with maturities initially due after one year or beyond the operating cycle if longer). Senior note holders are paid off in full before any payments are made to junior note holders. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
Total of all stockholders' equity (deficit) items, net of receivables from officers, directors, owners, and affiliates of the entity which are attributable to the parent. The amount of the economic entity's stockholders' equity attributable to the parent excludes the amount of stockholders' equity which is allocable to that ownership interest in subsidiary equity which is not attributable to the parent (noncontrolling interest, minority interest). This excludes temporary equity and is sometimes called permanent equity. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
Total of Stockholders' Equity (deficit) items, net of receivables from officers, directors, owners, and affiliates of the entity including portions attributable to both the parent and noncontrolling interests (previously referred to as minority interest), if any. The entity including portions attributable to the parent and noncontrolling interests is sometimes referred to as the economic entity. This excludes temporary equity and is sometimes called permanent equity. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Details
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- Definition
The total of financial instruments that are bought and held principally for the purpose of selling them in the near term (thus held for only a short period of time) or for debt and equity securities formerly categorized as available-for-sale or held-to-maturity which the entity held as of the date it opted to account for such securities at fair value. An enterprise may also categorize such a security as trading without the intent to sell it in the near term assuming the decision to categorize the security as trading occurred at acquisition. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
The amount allocated to treasury stock. Treasury stock is common and preferred shares of an entity that were issued, repurchased by the entity, and are held in its treasury. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
Carrying amount of premiums written on insurance contracts that have not been earned as of the balance sheet date. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
Trading securities amortized cost. No definition available.
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- Definition
This item represents the cost of debt securities, which are categorized neither as held-to-maturity nor trading, net of adjustments including accretion, amortization, collection of cash, previous other-than-temporary impairments recognized in earnings (less any cumulative-effect adjustments recognized, as defined), and fair value hedge accounting adjustments, if any. No definition available.
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- Definition
Face amount or stated value of common stock per share; generally not indicative of the fair market value per share. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
Total number of common shares of an entity that have been sold or granted to shareholders (includes common shares that were issued, repurchased and remain in the treasury). These shares represent capital invested by the firm's shareholders and owners, and may be all or only a portion of the number of shares authorized. Shares issued include shares outstanding and shares held in the treasury. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
Total number of shares of common stock held by shareholders. May be all or portion of the number of common shares authorized. These shares represent the ownership interest of the common shareholders. Shares outstanding equals shares issued minus shares held in treasury and other adjustments, if any. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
Net amount of deferred policy acquisition costs capitalized on contracts remaining in force as of the balance sheet date. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
The amount needed to reflect the estimated ultimate cost of settling claims relating to insured events that have occurred on or before the balance sheet date, whether or not reported to the insurer at that date. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
Includes other investments and securities that are not at fair value as of the balance sheet date and those that are not accounted for under the equity method. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
The carrying amount as of the balance sheet date due the entity from (a) agents and insureds, (b) uncollected premiums and (c) others, net of the allowance for doubtful accounts. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
The unexpired portion of premiums ceded on policies in force as of the balance sheet date. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
The known and estimated amount recoverable as of the balance sheet date from reinsurers for claims paid or incurred by the ceding insurer and associated claims settlement expenses, including estimated amounts for claims incurred but not reported, and policy benefits, net of any related valuation allowance. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
Number of common and preferred shares that were previously issued and that were repurchased by the issuing entity and held in treasury on the financial statement date. This stock has no voting rights and receives no dividends. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
Carrying amount of premiums written on insurance contracts that have not been earned as of the balance sheet date. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
Accelerated amortization of junior subordinated debt discount and issuance cost. No definition available.
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- Definition
Change during the period in the unearned gross premiums written (direct and assumed) and ceded premiums written. No definition available.
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| X | ||||||||||
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- Definition
Amount of deferred policy acquisition costs charged to expense in the period, generally in proportion to related revenue earned, estimated gross profits, or over the customer relationship or some other period. No definition available.
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- Definition
Expenses incurred in the repurchase of junior subordinated debt. No definition available.
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- Definition
The aggregate expense charged against earnings to allocate the cost of intangible assets (nonphysical assets not used in production) in a systematic and rational manner to the periods expected to benefit from such assets. As a noncash expense, this element is added back to net income when calculating cash provided by or used in operations using the indirect method. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
Premiums for all insurance assumed from other insurers, that is premiums ceded to the entity by other insurers. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
The total amount of expense recognized during the period for future policy benefits, claims and claims adjustment costs, and for selling, general and administrative costs. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Details
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| X | ||||||||||
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- Definition
Aggregate dividends declared during the period for each share of common stock outstanding. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
The component of income tax expense for the period representing amounts of income taxes paid or payable (or refundable) for the period for all income tax obligations as determined by applying the provisions of relevant enacted tax laws to relevant amounts of taxable Income or Loss from continuing operations. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
The component of income tax expense for the period representing the increase (decrease) in the entity's deferred tax assets and liabilities pertaining to continuing operations. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
The amount of net income (loss) for the period available to each share of common stock or common unit outstanding during the reporting period and to each share or unit that would have been outstanding assuming the issuance of common shares or units for all dilutive potential common shares or units outstanding during the reporting period. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
The aggregate foreign currency transaction gain (loss) (both realized and unrealized) included in determining net income for the reporting period. Excludes foreign currency transactions designated as hedges of net investment in a foreign entity and intercompany foreign currency transactions that are of a long-term nature, when the entities to the transaction are consolidated, combined, or accounted for by the equity method in the reporting enterprise's financial statements. For certain enterprises, primarily banks, that are dealers in foreign exchange, foreign currency transaction gains (losses) may be disclosed as dealer gains (losses). Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
This item represents the net total realized and unrealized gain (loss) included in earnings for the period as a result of selling or holding marketable securities categorized as trading, available-for-sale, or held-to-maturity, including the unrealized holding gain (loss) of held-to-maturity securities transferred to the trading security category and the cumulative unrealized gain (loss) which was included in other comprehensive income (a separate component of shareholders' equity) for available-for-sale securities transferred to trading securities during the period. Additionally, this item would include any gains (losses) realized during the period from the sale of investments accounted for under the cost method of accounting and losses recognized for other than temporary impairments (OTTI) of the subject investments. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
The aggregate total of expenses of managing and administering the affairs of an entity, including affiliates of the reporting entity, which are not directly or indirectly associated with the manufacture, sale or creation of a product or product line. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
Sum of operating profit and nonoperating income or expense before Income or Loss from equity method investments, income taxes, extraordinary items, and noncontrolling interest. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
The sum of the current income tax expense or benefit and the deferred income tax expense or benefit pertaining to continuing operations. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Details
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| X | ||||||||||
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- Definition
Represents the portion of interest incurred in the period on debt arrangements that was charged against earnings. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
This item represents investment income derived from investments in debt and equity securities consisting of interest income earned from investments in debt securities and on cash and cash equivalents, dividend income from investments in equity securities, and income or expense derived from the amortization of investment related discounts or premiums, respectively, net of related investment expenses. This item does not include realized or unrealized gains or losses on the sale or holding of investments in debt and equity securities required to be included in earnings for the period or for other than temporary losses related to investments in debt and equity securities which are included in realized losses in the period recognized, and does not include investment income from real or personal property, such as rental income. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
The portion of profit or loss for the period, net of income taxes, which is attributable to the parent. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
The portion of net Income or Loss attributable to the noncontrolling interest (if any) deducted in order to derive the portion attributable to the parent. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
Reflects the sum of all other revenue and income recognized by the entity in the period not otherwise specified in the income statement. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
Provision for benefits, claims and claims settlement expenses incurred during the period net of the effects of contracts assumed and ceded. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
Premiums earned on the income statement for all insurance and reinsurance contracts after subtracting any amounts ceded to another insurer and adding premiums assumed from other insurers. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
Premiums written for all insurance and reinsurance contracts, after adding premiums assumed from other insurers and subtracting any amounts ceded to another insurer. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
The consolidated profit or loss for the period, net of income taxes, including the portion attributable to the noncontrolling interest. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
Aggregate revenue recognized during the period (derived from goods sold, services rendered, insurance premiums, or other activities that constitute an entity's earning process). For financial services companies, also includes investment and interest income, and sales and trading gains. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Details
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CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | 6 Months Ended | ||
|---|---|---|---|---|
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Jun. 30, 2011
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Jun. 30, 2010
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Jun. 30, 2011
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Jun. 30, 2010
|
|
| Comprehensive (loss) income: | ||||
| Net (loss) income | $ (24,372) | $ 18,637 | $ (5,027) | $ 32,206 |
| Other comprehensive income | ||||
| Unrealized holdings net gains arising during the period | 18,216 | 4,399 | 21,762 | 28,923 |
| Adjustment for reclassification of net realized (gains) losses recognized in net (loss) income | (93) | (3,869) | (140) | (4,181) |
| Foreign currency translation adjustment | 528 | 1,915 | ||
| Other comprehensive income | 18,651 | 530 | 23,537 | 24,742 |
| Comprehensive (loss) income | (5,721) | 19,167 | 18,510 | 56,948 |
| Net loss attributable to noncontrolling interest | 6 | 3 | ||
| Other comprehensive income attributable to noncontrolling interest | (7) | (23) | ||
| Comprehensive income attributable to noncontrolling interest | (1) | (20) | ||
| Comprehensive (loss) income attributable to Maiden | $ (5,722) | $ 19,167 | $ 18,490 | $ 56,948 |
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- Definition
The change in equity [net assets] of a business enterprise during a period from transactions and other events and circumstances from non-owner sources which are attributable to the reporting entity. It includes all changes in equity during a period except those resulting from investments by owners and distributions to owners, but excludes any and all transactions which are directly or indirectly attributable to that ownership interest in subsidiary equity which is not attributable to the parent. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
| X | ||||||||||
|
- Details
|
| X | ||||||||||
|
- Definition
The change in equity [net assets] of a business enterprise during a period from transactions and other events and circumstances from non-owner sources which are attributable to noncontrolling interests, if any. It includes all changes in equity during a period except those resulting from investments by owners and distributions to owners, which are directly or indirectly attributable to that ownership interest in subsidiary equity which is not attributable to the parent. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
| X | ||||||||||
|
- Definition
The change in equity [net assets] of a business enterprise during a period from transactions and other events and circumstances from non-owner sources which are attributable to the economic entity, including both controlling (parent) and noncontrolling interests. It includes all changes in equity during a period except those resulting from investments by owners and distributions to owners, including any and all transactions which are directly or indirectly attributable to that ownership interest in subsidiary equity which is not attributable to the parent. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
| X | ||||||||||
|
- Definition
The portion of net income or loss for the period attributable to redeemable noncontrolling interest (if any) deducted in order to derive the portion attributable to the parent. This element should be used for redeemable noncontrolling interests that are classified within temporary equity. No definition available.
|
| X | ||||||||||
|
- Definition
Adjustment that results from the process of translating subsidiary financial statements and foreign equity investments into the reporting currency of the reporting entity, net of tax. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
| X | ||||||||||
|
- Definition
This element represents Other Comprehensive Income or Loss, Net of Tax, for the period. Includes deferred gains or losses on qualifying hedges, unrealized holding gains or losses on available-for-sale securities, minimum pension liability, and cumulative translation adjustment. While for technical reasons this element has no balance attribute, the default assumption is a credit balance consistent with its label. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
| X | ||||||||||
|
- Details
|
| X | ||||||||||
|
- Definition
Tax effect of the change in accumulated other comprehensive income, that is, the tax effect on items included in other comprehensive income during the period that is attributable to noncontrolling interest. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
| X | ||||||||||
|
- Definition
Reclassification adjustment for unrealized gains or losses realized upon the sale of securities, after tax. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
| X | ||||||||||
|
- Definition
Appreciation or loss in value (before reclassification adjustment) of the total of unsold securities during the period being reported on, net of tax. Reclassification adjustments include: (1) the unrealized holding gain (loss), net of tax, at the date of the transfer for a debt security from the held-to-maturity category transferred into the available-for-sale category. Also includes the unrealized gain (loss) at the date of transfer for a debt security from the available-for-sale category transferred into the held-to-maturity category; (2) the unrealized gains (losses) realized upon the sale of securities, after tax; and (3) the unrealized gains (losses) realized upon the write-down of securities, after tax. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
| X | ||||||||||
|
- Definition
The consolidated profit or loss for the period, net of income taxes, including the portion attributable to the noncontrolling interest. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
|
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (USD $)
In Thousands |
Total
|
Retained earnings
|
Treasury shares
|
Accumulated other comprehensive income
|
Common shares
|
Additional paid-in capital
|
Noncontrolling interest in subsidiary
|
|---|---|---|---|---|---|---|---|
| Beginning balance at Dec. 31, 2009 | $ 676,526 | $ 70,781 | $ (3,801) | $ 32,747 | $ 713 | $ 576,086 | |
| Exercise of options and issuance of shares | 3 | 3 | |||||
| Net (loss) income | 32,206 | 32,206 | |||||
| Change in net unrealized gains on investments | 24,742 | 24,742 | |||||
| Share based compensation | 450 | 450 | |||||
| Dividends on common shares | (9,138) | (9,138) | |||||
| Ending balance at Jun. 30, 2010 | 724,789 | 93,849 | (3,801) | 57,489 | 713 | 576,539 | |
| Beginning balance at Dec. 31, 2010 | 750,449 | 121,775 | (3,801) | 54,334 | 731 | 577,135 | 275 |
| Exercise of options and issuance of shares | 91 | 91 | |||||
| Net (loss) income | (5,027) | (5,024) | (3) | ||||
| Change in net unrealized gains on investments | 21,622 | 21,622 | |||||
| Foreign currency translation adjustment | 1,915 | 1,892 | 23 | ||||
| Share based compensation | 678 | 678 | |||||
| Dividends on common shares | (10,097) | (10,097) | |||||
| Ending balance at Jun. 30, 2011 | $ 759,631 | $ 106,654 | $ (3,801) | $ 77,848 | $ 731 | $ 577,904 | $ 295 |
| X | ||||||||||
|
- Definition
Stock-based Compensation Expense. No definition available.
|
| X | ||||||||||
|
- Definition
Equity impact of aggregate cash, stock, and paid-in-kind dividends declared for common shareholders during the period. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
| X | ||||||||||
|
- Definition
Gross appreciation or the gross loss in value of the total unsold securities. While for technical reasons this element has no balance attribute, the default assumption is a credit balance consistent with its label. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
| X | ||||||||||
|
- Definition
Adjustment that results from the process of translating subsidiary financial statements and foreign equity investments into the reporting currency of the reporting entity, net of tax. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
| X | ||||||||||
|
- Definition
The consolidated profit or loss for the period, net of income taxes, including the portion attributable to the noncontrolling interest. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
| X | ||||||||||
|
- Definition
Total of Stockholders' Equity (deficit) items, net of receivables from officers, directors, owners, and affiliates of the entity including portions attributable to both the parent and noncontrolling interests (previously referred to as minority interest), if any. The entity including portions attributable to the parent and noncontrolling interests is sometimes referred to as the economic entity. This excludes temporary equity and is sometimes called permanent equity. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
| X | ||||||||||
|
- Definition
Value stock issued during the period as a result of the exercise of stock options. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
| X | ||||||||||
|
- Definition
The sum of the periodic adjustments of the differences between securities' face values and purchase prices that are charged against earnings. This is called accretion if the security was purchased at a discount and amortization if it was purchased at premium. As a noncash item, this element is an adjustment to net income when calculating cash provided by or used in operations using the indirect method. Also includes the amortiztion of share-based compensation expenses and discount on trust preferred securities. No definition available.
|
| X | ||||||||||
|
- Details
|
| X | ||||||||||
|
- Definition
Includes currency on hand as well as demand deposits with banks or financial institutions. It also includes other kinds of accounts that have the general characteristics of demand deposits in that the Entity may deposit additional funds at any time and also effectively may withdraw funds at any time without prior notice or penalty. Cash equivalents, excluding items classified as marketable securities, include short-term, highly liquid investments that are both readily convertible to known amounts of cash, and so near their maturity that they present minimal risk of changes in value because of changes in interest rates. Generally, only investments with original maturities of three months or less qualify under that definition. Original maturity means original maturity to the entity holding the investment. For example, both a three-month US Treasury bill and a three-year Treasury note purchased three months from maturity qualify as cash equivalents. However, a Treasury note purchased three years ago does not become a cash equivalent when its remaining maturity is three months. Compensating balance arrangements that do not legally restrict the withdrawal or usage of cash amounts may be reported as Cash and Cash Equivalents, while legally restricted deposits held as compensating balances against borrowing arrangements, contracts entered into with others, or company statements of intention with regard to particular deposits are not generally reported as cash and cash equivalents. Includes cash and cash equivalents associated with the entity's continuing operations. Excludes cash and cash equivalents associated with the disposal group (and discontinued operation). Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
| X | ||||||||||
|
- Definition
The increase (decrease) during the reporting period in cash and cash equivalents. While for technical reasons this element has no balance attribute, the default assumption is a debit balance consistent with its label. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
| X | ||||||||||
|
- Definition
The current period expense charged against earnings on long-lived, physical assets not used in production, and which are not intended for resale, to allocate or recognize the cost of such assets over their useful lives; or to record the reduction in book value of an intangible asset over the benefit period of such asset; or to reflect consumption during the period of an asset that is not used in production. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
| X | ||||||||||
|
- Definition
The effect of exchange rate changes on cash balances held in foreign currencies. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
| X | ||||||||||
|
- Definition
The aggregate foreign currency transaction gain (loss) (both realized and unrealized) included in determining net income for the reporting period. Excludes foreign currency transactions designated as hedges of net investment in a foreign entity and intercompany foreign currency transactions that are of a long-term nature, when the entities to the transaction are consolidated, combined, or accounted for by the equity method in the reporting enterprise's financial statements. For certain enterprises, primarily banks, that are dealers in foreign exchange, foreign currency transaction gains (losses) may be disclosed as dealer gains (losses). Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
| X | ||||||||||
|
- Definition
This item represents the net total realized and unrealized gain (loss) included in earnings for the period as a result of selling or holding marketable securities categorized as trading, available-for-sale, or held-to-maturity, including the unrealized holding gain (loss) of held-to-maturity securities transferred to the trading security category and the cumulative unrealized gain (loss) which was included in other comprehensive income (a separate component of shareholders' equity) for available-for-sale securities transferred to trading securities during the period. Additionally, this item would include any gains (losses) realized during the period from the sale of investments accounted for under the cost method of accounting and losses recognized for other than temporary impairments (OTTI) of the subject investments. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
| X | ||||||||||
|
- Definition
The increase (decrease) during the reporting period in investment income that has been earned but not yet received in cash. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
| X | ||||||||||
|
- Definition
The increase (decrease) during the reporting period in the aggregate amount of accrued expenses and other operating obligations not separately disclosed in the statement of cash flows. No definition available.
|
| X | ||||||||||
|
- Definition
The increase (decrease) during the reporting period in the carrying amount of client funds held and maintained in custodial and separate accounts, and which are owned by clients or contract holders. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
| X | ||||||||||
|
- Definition
The increase (decrease) during the reporting period in the balance sheet value of capitalized sales costs that are associated with acquiring a new insurance customers. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
| X | ||||||||||
|
- Definition
The increase (decrease) during the reporting period in the reserve account established to account for expected but unspecified losses. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
| X | ||||||||||
|
- Details
|
| X | ||||||||||
|
- Details
|
| X | ||||||||||
|
- Definition
The increase (decrease) during the reporting period in other assets used in operating activities not separately disclosed in the statement of cash flows. May include changes in other current assets, other noncurrent assets, or a combination of other current and noncurrent assets. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
| X | ||||||||||
|
- Definition
The change in the premium receivable balance on the balance sheet. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
| X | ||||||||||
|
- Definition
The change in prepaid reinsurance premiums recorded on the balance sheet, which is needed to adjust net income to arrive at net cash flows provided by or used in operations. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
| X | ||||||||||
|
- Definition
The net cash inflow or outflow for the increase (decrease) associated with funds that are not available for withdrawal or use (such as funds held in escrow) and are associated with underlying transactions that are classified as investing activities. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
| X | ||||||||||
|
- Definition
Change during the period in the unearned portion of premiums written, excluding the portion amortized into income. Premiums written are initially booked as unearned premiums and are recognized as revenue over the known or estimated life of the policy. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
| X | ||||||||||
|
- Definition
The net cash inflow or outflow from financing activity for the period. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
| X | ||||||||||
|
- Details
|
| X | ||||||||||
|
- Definition
The net cash inflow or outflow from investing activity. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
| X | ||||||||||
|
- Definition
The net cash from (used in) all of the entity's operating activities, including those of discontinued operations, of the reporting entity. Operating activities generally involve producing and delivering goods and providing services. Operating activity cash flows include transactions, adjustments, and changes in value that are not defined as investing or financing activities. While for technical reasons this element has no balance attribute, the default assumption is a debit balance consistent with its label. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
| X | ||||||||||
|
- Details
|
| X | ||||||||||
|
- Definition
The cash outflow paid to third parties in connection with debt origination, which will be amortized over the remaining maturity period of the associated long-term debt. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
| X | ||||||||||
|
- Definition
The cash outflow from the entity's earnings to the shareholders. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
| X | ||||||||||
|
- Definition
The cash outflow to acquire debt securities classified as available-for-sale securities, because they are not classified as either held-to-maturity securities or trading securities. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
| X | ||||||||||
|
- Details
|
| X | ||||||||||
|
- Definition
The cash outflow associated with other investments held by the entity for investment purposes not otherwise defined in the taxonomy. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
| X | ||||||||||
|
- Definition
The cash outflow associated with the acquisition of long-lived, physical assets that are used in the normal conduct of business to produce goods and services and not intended for resale; includes cash outflows to pay for construction of self-constructed assets. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
| X | ||||||||||
|
- Definition
The cash outflow for securities or other assets acquired, which qualify for treatment as an investing activity and are to be liquidated, if necessary, within the current operating cycle. Includes cash flows from securities classified as trading securities that were acquired for reasons other than sale in the short-term. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
| X | ||||||||||
|
- Definition
The cash inflow from the additional capital contribution to the entity. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
| X | ||||||||||
|
- Definition
The cash inflow during the period from additional borrowings in aggregate debt. Includes proceeds from short-term and long-term debt. No definition available.
|
| X | ||||||||||
|
- Definition
The cash inflow associated with maturities (principal being due), prepayments and calls (requests of early payments) on securities not classified as either held-to-maturity securities or trading securities which are classified as available-for-sale securities. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
| X | ||||||||||
|
- Definition
The net cash inflow or outflow from other financing activities. This element is used when there is not a more specific and appropriate element in the taxonomy. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
| X | ||||||||||
|
- Definition
The cash inflow associated with the sale and maturity (principal being due) of other investments, prepayment and call (request of early payment) of other investments not otherwise defined in the taxonomy. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
| X | ||||||||||
|
- Details
|
| X | ||||||||||
|
- Definition
The cash inflow associated with the sale of debt securities classified as available-for-sale securities. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
| X | ||||||||||
|
- Definition
The cash inflow from sales of all investments, including securities and other assets, having ready marketability and intended by management to be liquidated, if necessary, within the current operating cycle. Includes cash flows from securities classified as trading securities that were acquired for reasons other than sale in the short-term. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
| X | ||||||||||
|
- Definition
The consolidated profit or loss for the period, net of income taxes, including the portion attributable to the noncontrolling interest. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
|
Basis of Presentation - Summary of Significant Accounting Policies
|
6 Months Ended |
|---|---|
|
Jun. 30, 2011
|
|
| Basis of Presentation - Summary of Significant Accounting Policies |
1. Basis of
Presentation – Summary of Significant Accounting
Policies
The
accompanying unaudited condensed consolidated financial statements
include the accounts of Maiden Holdings, Ltd. and its subsidiaries
(the “Company”) and have been prepared in accordance
with generally accepted accounting principles in the United States
(“GAAP”) for interim financial statements and with the
instructions to Form 10-Q and Article 10 of Regulation S-X as
promulgated by the U.S. Securities and Exchange Commission
(“SEC”). Accordingly they do not include all of the
information and footnotes required by GAAP for complete financial
statements. All significant inter-company transactions and accounts
have been eliminated in the consolidated financial
statements.
These
interim consolidated financial statements reflect all adjustments
that are, in the opinion of management, necessary for a fair
presentation of the results for the interim period and all such
adjustments are of a normal recurring nature. The results of
operations for the interim period are not necessarily indicative,
if annualized, of those to be expected for the full year. The
preparation of financial statements in conformity with GAAP
requires management to make estimates and assumptions that affect
the amounts reported in the financial statements and accompanying
notes. Actual results could differ from those
estimates.
These
unaudited condensed consolidated financial statements, including
these notes, should be read in conjunction with the Company’s
audited consolidated financial statements, and related notes
thereto, included in the Company’s Annual Report on
Form 10-K for the year ended December 31, 2010.
Certain
reclassifications have been made for 2010 to conform to
the 2011 presentation and have no impact on net income
previously reported.
|
| X | ||||||||||
|
- Definition
The entire disclosure for the organization, consolidation and basis of presentation of financial statements disclosure, and significant accounting policies of the reporting entity. May be provided in more than one note to the financial statements, as long as users are provided with an understanding of (1) the significant judgments and assumptions made by an enterprise in determining whether it must consolidate a VIE and/or disclose information about its involvement with a VIE, (2) the nature of restrictions on a consolidated VIE's assets reported by an enterprise in its statement of financial position, including the carrying amounts of such assets, (3) the nature of, and changes in, the risks associated with an enterprise's involvement with the VIE, and (4) how an enterprise's involvement with the VIE affects the enterprise's financial position, financial performance, and cash flows. Describes procedure if disclosures are provided in more than one note to the financial statements. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
|
Recent Accounting Pronouncements
|
6 Months Ended |
|---|---|
|
Jun. 30, 2011
|
|
| Recent Accounting Pronouncements |
2. Recent Accounting Pronouncements
Adoption of Accounting Standards Updates
Presentation of Comprehensive Income
In
June 2011, the Financial Accounting Standards Board
(“FASB”) issued updated guidance to increase the
prominence of items reported in other comprehensive income by
eliminating the option of presenting components of comprehensive
income as part of the statement of changes in shareholders’
equity. The updated guidance requires that all non-owner
changes in shareholders’ equity be presented either as a
single continuous statement of comprehensive income or in two
separate but consecutive statements. The updated guidance is
to be applied retrospectively and is effective for the quarter
ending March 31, 2012. Early adoption is permitted. The
adoption of this guidance resulted in a change in the presentation
of the Company’s financial statements but did not have any
impact on the Company’s results of operations, financial
position or liquidity.
Intangibles — Goodwill and Other
In
December 2010, the FASB issued updated guidance that
modifies the goodwill impairment test. Under the
updated guidance, goodwill is tested for impairment using a
two-step process. The first step is to identify potential
impairments by comparing the estimated fair value of a reporting
unit to its carrying value, including goodwill. If the
carrying value of a reporting unit exceeds the estimated fair
value, a second step is performed to measure the amount of
impairment, if any. The second step is to determine the
implied fair value of the reporting unit’s goodwill, measured
in the same manner as goodwill is recognized in a business
combination, and compare the implied fair value with the carrying
amount of the goodwill. If the carrying amount exceeds
the implied fair value of the reporting unit’s goodwill, an
impairment loss is recognized in an amount equal to that
excess.
The
updated guidance requires that, if the carrying amount of a
reporting unit becomes zero or negative, the second step of the
impairment test must be performed when it is more likely than not
that a goodwill impairment loss exists. In considering
whether it is more likely than not that an impairment loss exists,
a company is required to evaluate qualitative factors, including
the factors presented in existing guidance that trigger an interim
impairment test of goodwill (e.g., a significant adverse change in
business climate or an anticipated sale of a reporting unit).
The provisions of the guidance were effective for annual and
interim periods beginning after December 15, 2010. The
adoption of this guidance in January 2011 did not have any
effect on the Company’s results of operations, financial
position or liquidity.
Deferred Acquisition Costs
In
October 2010, the FASB issued updated guidance to address the
diversity in practice for the accounting for costs associated with
acquiring or renewing insurance contracts. This guidance modifies
the definition of acquisition costs to specify that a cost must be
directly related to the successful acquisition of a new or renewal
insurance contract in order to be deferred. If application of this
guidance would result in the capitalization of acquisition costs
that had not previously been capitalized by a reporting entity, the
entity may elect not to capitalize those costs. The updated
guidance is effective on either a retrospective or prospective
basis for interim and annual reporting periods beginning after
December 15, 2011, with early adoption permitted as of the
beginning of a company’s annual period. We are currently
evaluating the impact of the adoption of this new guidance on our
consolidated results of operations and financial
condition.
Accounting Standards Not Yet Adopted
Transfers and Servicing: Reconsideration of Effective Control
for Repurchase Agreement
In
April 2011, the FASB amended its guidance on accounting for
repurchase agreements. The amendments simplify the accounting by
eliminating the requirement that the transferor demonstrate it has
adequate collateral to fund substantially all the cost of
purchasing replacement assets. Under the amended guidance, a
transferor maintains effective control over transferred financial
assets (and thus accounts for the transfer as a secured borrowing)
if there is an agreement that both entitles and obligates the
transferor to repurchase the financial assets before maturity and
if all of the following conditions previously required are met; (i)
financial assets to be repurchased or redeemed are the same or
substantially the same as those transferred, (ii) repurchase or
redemption date before maturity at a fixed or determinable price,
and (iii) the agreement is entered into contemporaneously with, or
in contemplation of, the transfer. As a result, more
arrangements could be accounted for as secured borrowings rather
than sales. The updated guidance is effective on a
prospective basis for interim and annual reporting periods
beginning on or after December 15, 2011, early adoption is
prohibited. We are currently evaluating the impact of the adoption
of this new guidance on our consolidated results of operations and
financial condition.
Amendments to Achieve Common Fair Value Measurements and Disclosure
Requirements in U.S. GAAP and IFRS
In
May 2011, the FASB issued updated guidance that addresses the
objective of the FASB and the International Accounting Standards
Board (“IASB”) to develop common requirements for
measuring and for disclosing information about fair value
measurements with U.S. GAAP and International Financial Reporting
Standards (“IFRS”). The FASB and the IASB worked
together to ensure that fair value has the same meaning in U.S.
GAAP and IFRS and that their respective fair value measurement and
disclosure requirements are the same (except for minor differences
in wording and style). The FASB and the IASB concluded that this
guidance will improve comparability of fair value measurements
presented and disclosed in financial statements prepared in
accordance with U.S. GAAP and IFRS. The guidance explains how to
measure fair value. This updated guidance does not require
additional fair value measurements and are not intended to
establish valuation standards or affect valuation practices outside
of financial reporting. The updated guidance is effective
during interim and annual periods after December 15, 2011. Early
application is not permitted. The adoption of this guidance is not
expected to have any effect on the Company’s results of
operations, financial position or liquidity.
|
| X | ||||||||||
|
- Definition
The entire disclosure for new accounting pronouncements which have been adopted and those that have been issued but not yet adopted. No definition available.
|
|
Investments
|
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Jun. 30, 2011
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| Investments |
3. Investments
(a) Fixed Maturities and Other Investments
The
original or amortized cost, estimated fair value and gross
unrealized gains and losses of available-for-sale and other
investments as of June 30, 2011 and December 31, 2010 are as
follows:
The
contractual maturities of our fixed maturities, available-for-sale
as of June 30, 2011 are shown below. Actual maturities may
differ from contractual maturities because borrowers may have the
right to call or repay obligations prior to contractual
maturity.
The
following tables summarize our available-for-sale securities and
other investments in an unrealized loss position and the aggregate
fair value and gross unrealized loss by length of time the security
has continuously been in an unrealized loss position:
As
of June 30, 2011, there were approximately 21 securities in an
unrealized loss position with a fair value of $419,361 and
unrealized losses of $11,564. Of these securities, there are 7
securities that have been in an unrealized loss position for 12
months or greater with a fair value of $129,523 and unrealized
losses of $7,978.
As
of December 31, 2010, there were approximately 32 securities in an
unrealized loss position with a fair value of $642,888 and
unrealized losses of $17,971. Of these securities, there are 9
securities that have been in an unrealized loss position for 12
months or greater with a fair value of $166,062 and unrealized
losses of $9,855.
Other-Than-Temporary Impairments
(“OTTI”)
We
review our investment portfolio for impairment on a quarterly
basis. Impairment of investments results in a charge to operations
when a fair value decline below cost is deemed to be
other-than-temporary. As of June 30, 2011, we reviewed our
portfolio to evaluate the necessity of recording impairment losses
for other-than-temporary declines in the fair value of investments.
During the three and six months ended June 30, 2011 and 2010, the
Company recognized no OTTI. Based on our qualitative and
quantitative OTTI review of each asset class within our fixed
maturity portfolio, the remaining unrealized losses on fixed
maturities at June 30, 2011 were primarily due to widening of
credit spreads relating to the market illiquidity, rather than
credit events. Because we do not intend to sell these securities
and it is not more likely than not that we will be required to sell
these securities until a recovery of fair value to amortized cost,
we currently believe it is probable that we will collect all
amounts due according to their respective contractual terms.
Therefore, we do not consider these fixed maturities to be
other-than-temporarily impaired at June 30, 2011.
(b) Other Investments
The
table below shows our portfolio of other investments:
The
Company has an unfunded commitment on its investments in limited
partnerships of approximately $4,038 as of June 30,
2011.
(c)
Realized and unrealized gains and losses
Realized
gains or losses on the sale of investments are determined on the
basis of the first in first out cost method and include adjustments
to the cost basis of investments for declines in value that are
considered to be other-than-temporary. The following provides an
analysis of realized and unrealized gains and losses for the three
and six months ended June 30, 2011 and 2010:
Proceeds
from sales of fixed maturities classified as available-for-sale
were $76,569 and $173,687 for the six months ended June 30, 2011
and 2010, respectively.
Net
unrealized gain (loss) on available-for-sale securities and other
investments was as follows:
(d) Restricted Cash and Investments
We
are required to maintain assets on deposit to support our
reinsurance operations and to serve as collateral for our
reinsurance liabilities under various reinsurance agreements. The
assets on deposit are available to settle reinsurance liabilities.
We also utilize trust accounts to collateralize business with our
reinsurance counterparties. These trust accounts generally take the
place of letter of credit requirements. The assets in trust as
collateral are primarily cash and highly rated fixed maturity
securities. The fair value of our restricted assets was as
follows:
(e)
Other
The
Company enters into repurchase agreements. The agreements are
accounted for as collateralized borrowing transactions and are
recorded at contract amounts. The Company receives cash or
securities, that it invests or holds in short term or fixed income
securities. During the period, the Company repaid the entire
balance outstanding of $76,225. Interest expense associated with
these repurchase agreements was $0 and $756 for the three and six
months ended June 30, 2011, respectively, (2010 - $298 and $355,
respectively) out of which $0 was accrued as of June 30, 2011
(December 31, 2010 - $702).
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| X | ||||||||||
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- Definition
The entire disclosure for investment holdings. This includes the long positions of investments for the entity. It contains investments in affiliated and unaffiliated issuers. The investments include securities and non securities (i.e. commodities and futures contracts). Reference 1: http://www.xbrl.org/2003/role/presentationRef
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Fair Value of Financial Instruments
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Jun. 30, 2011
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| Fair Value of Financial Instruments |
4. Fair Value of Financial Instruments
The Company’s estimates of fair value for financial assets
and financial liabilities are based on the framework established in
ASC 820. The framework is based on the inputs used in valuation and
gives the highest priority to quoted prices in active markets and
requires that observable inputs be used in the valuations when
available. The disclosure of fair value estimates in the ASC 820
hierarchy is based on whether the significant inputs into the
valuation are observable. In determining the level of the hierarchy
in which the estimate is disclosed, the highest priority is given
to unadjusted quoted prices in active markets and the lowest
priority to unobservable inputs that reflect the Company’s
significant market assumptions. The three levels of the hierarchy
are as follows:
In accordance with ASC 820, the Company determines fair value based
on the price that would be received to sell an asset or paid to
transfer a liability in an orderly transaction between market
participants at the measurement date.
ASC 825, “Disclosure about Fair Value of Financial
Instruments,” requires all entities to disclose the fair
value of their financial instruments, both assets and liabilities
recognized and not recognized in the balance sheet, for which it is
practicable to estimate fair value.
The following describes the valuation techniques used by the
Company to determine the fair value of financial instruments held
as of June 30, 2011.
U.S. government
and U.S. government agencies: Comprised primarily of
bonds issued by the U.S. Treasury, the Federal Home Loan Bank, the
Federal Home Loan Mortgage Corporation, Federal Farm Credit Bank,
Government National Mortgage Association and the Federal National
Mortgage Association. The fair values of U.S. government securities
are based on quoted market prices in active markets, and are
included in the Level 1 fair value hierarchy. We believe the market
for U.S. Treasury securities is an actively traded market given the
high level of daily trading volume. The fair values of U.S.
government agency securities are priced using the spread above the
risk-free yield curve. As the yields for the risk-free yield curve
and the spreads for these securities are observable market inputs,
the fair values of U.S. government agency securities are included
in the Level 2 fair value hierarchy.
Non-U.S.
government bonds: Comprised of Non-U.S. government
bonds issued primarily by Germany, Belgium and Netherlands. These
securities are generally priced by pricing services. The pricing
services may use current market trades for securities with similar
quality, maturity and coupon. If no such trades are available, the
pricing service typically uses analytical models which may
incorporate spreads, interest rate data and market/sector news. As
the significant inputs used to price Non-U.S. government bonds are
observable market inputs, the fair values of Non-U.S. government
bonds are included in the Level 2 fair value
hierarchy.
Corporate
bonds: Comprised of bonds issued by corporations that
on acquisition are rated BBB-/Baa3 or higher provided that, in
aggregate, corporate bonds with ratings of BBB-/Baa3 do not
constitute more than 5% of the market value of our fixed income
securities and are diversified across a wide range of issuers and
industries. These securities are generally priced by pricing
services. The fair values of corporate bonds that are short-term
are priced, by the pricing services, using the spread above the
London Interbank Offering Rate (“LIBOR”) yield curve
and the fair value of corporate bonds that are long-term are priced
using the spread above the risk-free yield curve. The spreads are
sourced from broker/dealers, trade prices and the new issue market.
Where pricing is unavailable from pricing services, we obtain
non-binding quotes from broker-dealers. As the significant inputs
used to price corporate bonds are observable market inputs, the
fair values of corporate bonds are included in the Level 2 fair
value hierarchy.
Municipals:
Municipal securities comprise bonds issued by U.S. domiciled state
and municipality entities. The fair values of these securities are
generally priced by pricing services. The pricing services
typically use spreads obtained from broker-dealers, trade prices
and the new issue market. As the significant inputs used to price
the municipals are observable market inputs, municipals are
classified within Level 2.
Other
investments: The fair values of the hedge funds are
based on the net asset value of the funds as reported by the fund
manager, and as such, the fair values of those investments are
included in the Level 3 fair value hierarchy.
Reinsurance
balance receivable: The carrying values reported in
the accompanying balance sheets for these financial instruments
approximate their fair value due to short term nature of the
assets.
Loan to related
party: The carrying values reported in the
accompanying balance sheets for these financial instruments
approximate their fair value.
Junior
subordinated debt: The carrying values reported in
the accompanying balance sheets for these financial instruments
approximate their fair value.
Senior Notes:
The carrying values reported in the accompanying
balance sheets for these financial instruments approximate their
fair value.
(a) Fair
Value Hierarchy
The following table presents the level within the fair value
hierarchy at which the Company’s financial assets and
financial liabilities are measured on a recurring basis as of June
30, 2011 and December 31, 2010:
(b) Level 3 Financial Instruments
The following table presents changes in Level 3 for our financial
instruments measured at fair value on a recurring basis for the
three and six months ended June 30, 2011 and
2010:
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| X | ||||||||||
|
- Definition
The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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Goodwill and Intangible Assets
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Jun. 30, 2011
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| Goodwill and Intangible Assets |
5. Goodwill and Intangible Assets
Goodwill
Goodwill
is calculated as the excess of purchase price over the net fair
value of assets acquired. The Company performs an annual impairment
analysis to identify potential goodwill impairment and measures the
amount of a goodwill impairment loss to be recognized. This annual
test is performed during the fourth quarter of each year or more
frequently if events or circumstances change in a way that requires
the Company to perform the impairment analysis on an interim basis.
Goodwill impairment testing requires an evaluation of the estimated
fair value of each reporting unit to its carrying value, including
the goodwill. An impairment charge is recorded if the
estimated fair value is less than the carrying amount of the
reporting unit. No impairments have been identified to
date.
Intangibles
Intangible
assets consist of finite and indefinite life assets. Finite life
intangible assets include customer and producer relationships and
trademarks. Insurance company licenses are considered indefinite
life intangible assets subject to annual impairment
testing.
The
following table shows an analysis of goodwill and intangible assets
as of June 30, 2011 and December 31, 2010:
The
goodwill and intangible assets were recognized as a result of the
GMAC International Insurance Services, Ltd. Reinsurance Acquisition
and GMAC Insurance Acquisition and are assigned to Diversified
Reinsurance segment. Goodwill and intangible assets are subject to
annual impairment testing. No impairment was recorded during the
three and six months ended June 30, 2011 and 2010. The estimated
amortization expense for the next five years is:
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- Definition
The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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Long-Term Debt
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6 Months Ended |
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Jun. 30, 2011
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| Long-Term Debt |
6. Long-Term Debt
Senior Notes
In
June 2011, the Company, through its wholly-owned subsidiary Maiden
NA, issued $107,500 principal amount of 8.25% Senior Notes
(“Senior Notes”) due on June 15, 2041, which are fully
and unconditionally guaranteed by the Company. The Senior
Notes are redeemable for cash, in whole or in part, on or after
June 15, 2016, at 100% of the principal amount plus accrued and
unpaid interest to but excluding the redemption date. In
order to ensure that issuance of the Senior Notes resulted in a
long term favorable impact to Maiden shareholders, the Company
sought to repurchase a portion of the Trust Preferred Securities,
described below, with the proceeds of the Senior Notes offering.
Under the redemption notice provisions of the Trust Preferred
Securities, the Company was required to give at least 30
days’ notice in advance of the next interest payment (July
15, 2011) prior to redemption, or incur an additional quarter's
interest payments. Since the Senior Notes offering was
initiated after the 30 day notice period on June 16, 2011, the
Company offered to all holders an option to have a portion of their
Trust Preferred Securities repurchased on a pro rata basis from the
proceeds of the Senior Notes offering in exchange for a waiver of
such notice provisions and an agreement
to accept interest through July 15, 2011. Certain of the
Trust Preferred Securities holders accepted the offer by June 16,
2011. All proceeds of the Senior Notes offering were used to
repurchase the Trust Preferred Securities of the holders who
accepted the offer. The Senior Notes are an unsecured and
unsubordinated obligation of the Company and rank ahead of the
Junior Subordinated Debt. The effective interest rate of the Senior
Notes, based on the net proceeds received, was 8.47%. The net
proceeds from the sale of the Senior Notes were $104,689, after
placement agent fees and expense or debt issuance cost of $2,811,
and were used to repurchase $107,500 principal amount portion of
the outstanding Junior Subordinated Debt, as discussed above. The
issuance costs related to the Senior Notes were capitalized and
will be amortized over the life of the notes.
The
interest on the Senior Notes is payable each quarter beginning on
September 15, 2011 and will include accrued interest from June 24,
2011. Interest expense for the period ended June 30, 2011 was
$173.
Junior Subordinated Debt
On
January 20, 2009, the Company completed a private placement of
260,000 units (the “Units”), each Unit consisting of
$1,000 principal amount of capital securities (the “Trust
Preferred Securities”) of Maiden Capital Financing Trust (the
“Trust”), a special purpose trust established by Maiden
Holdings North America, Ltd. ("Maiden NA"), and 45 common shares,
$0.01 par value, of the Company for a purchase price of
$1,000.45 per Unit (the “TRUPS Offering”). In the
aggregate, we also issued 11,700,000 common shares to the
purchasers in the TRUPS Offering. This resulted in gross proceeds
to the Company of $260,117, before $4,342 of placement agent fees
and expenses.
Certain
trusts established by Michael Karfunkel and George Karfunkel, two
of the Company’s Founding Shareholders, purchased an
aggregate of 159,000 of the Units, or 61.12%. The remaining 101,000
Units were purchased by existing institutional shareholders of the
Company.
The
Trust used the proceeds from the sale of the Trust Preferred
Securities to purchase a subordinated debenture (the
“Debenture”) in the principal amount of $260,000 issued
by Maiden NA.
Under
the terms of the Trust Preferred Securities, the Company can repay
the principal balance in full or in part at any time. However, if
the Company repays such principal within five years of the date of
issuance, it is required to pay an additional amount equal to one
full year of interest on the amount of Trust Preferred Securities
repaid. If the full amount of the Trust Preferred Securities were
repaid within five years of the date of issuance (adjusted for the
$107,500 repurchase of Junior Subordinated Debt, see Note 12), the
additional amount due would be $21,350, which would be a reduction
in earnings.
Pursuant
to separate Guarantee Agreements dated as of January 20, 2009 with
Wilmington Trust Company, as guarantee trustee, each of the Company
and Maiden NA has agreed to guarantee the payment of distributions
and payments on liquidation or redemption of the Trust Preferred
Securities.
As
a consequence of the issuance of a majority of the Units to a
related party under ASC Topic 810 “Consolidation”, the
Trust is a variable interest entity and the Company is deemed not
to be the primary beneficiary of the Trust, therefore it is not
consolidated. The issuance of common shares associated with the
Trust Preferred Securities resulted in an original issuance
discount of $44,928 based on market price of $3.85 on January 20,
2009. The discount is amortized over 30 years based on the
effective interest method. The Debenture and Trust Preferred
Securities mature in 2039 and carry a stated or coupon rate of 14%
with an effective interest rate of 16.95%.
As
of June 30, 2011, the stated value of the Junior Subordinated Debt
was $215,228 which comprises the principal amount of $260,000 and
unamortized discount of $44,772. Amortization expense for the three
and six months ended June 30, 2011 was $19 and $37, respectively
(2010 - $16 and $31, respectively). Interest expense for the
three and six months ended June 30, 2011 was $9,100 and $18,200,
respectively (2010 - $9,100 and $18,200,
respectively).
As
a result of the Senior Notes Offering, the Company announced that
it will repurchase $107,500 of the Junior Subordinated Debt on July
15, 2011. Pursuant to the terms of the TRUPS Offering, the
Company incurred a repurchase expense equivalent to one
year’s interest expense or $15,050. The Company also
accelerated the amortization of the issuance cost and discount
related to those repurchased Junior Subordinated Debt which
amounted to $20,313.
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- Definition
The entire disclosure for long-term debt. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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Earnings per Common Share
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Jun. 30, 2011
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| Earnings per Common Share |
7. Earnings per Common Share
The
following is a summary of the elements used in calculating basic
and diluted earnings per common share:
As
of June 30, 2011, no warrants (June 30, 2010 – 4,050,000) and
2,161,409 share options (June 30, 2010 – 1,689,874) were
excluded from the calculation of diluted earnings per common share
as they were anti-dilutive.
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- Definition
The entire disclosure for earnings per share. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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Share Based Compensation
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Jun. 30, 2011
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| Share Based Compensation |
8. Share Based
Compensation
Share Options
The
fair value of each option grant is separately estimated for each
vesting date. The fair value of each option is amortized into
compensation expense on a straight-line basis between the grant
date for the award and each vesting date. The Company has estimated
the fair value of all share option awards as of the date of the
grant by applying the Black-Scholes-Merton multiple-option pricing
valuation model. The application of this valuation model involves
assumptions that are judgmental and highly sensitive in the
determination of compensation expense. The adoption of ASC
Topic 718 "Compensation - Stock Compensation" fair value
method has resulted in share-based expense (a component of salaries
and benefits) in the amount of approximately $339 and $678 for the
three and six months ended June 30, 2011, respectively (2010 - $240
and $450, respectively).
The
key assumptions used in determining the fair value of options
granted in the three and six months ended June 30, 2011 and a
summary of the methodology applied to develop each assumption are
as follows:
Expected Price Volatility – This is a measure of the
amount by which a price has fluctuated or is expected to fluctuate.
The common shares of the Company began trading on May 6, 2008 on
NASDAQ. Since the Company does not have enough history over
which to calculate an expected volatility representative of the
volatility over the expected lives of the options, the Company also
considered the historical and current implied volatilities of a set
of comparable companies in the industry in which the Company
operates.
Risk-Free Interest Rate – This is the U.S. treasury
rate for the week of the grant having a term equal to the expected
life of the option. An increase in the risk-free interest rate will
increase compensation expense.
Expected Lives – This is the period of time over which
the options granted are expected to remain outstanding giving
consideration to vesting schedules, historical exercise and
forfeiture patterns. The Company uses the simplified method
outlined in SEC Staff Accounting Bulletin No. 107 to estimate
expected lives for options granted during the period as historical
exercise data is not available and the options meet the
requirements set out in the Bulletin. Options granted have a
maximum term of ten years. An increase in the expected life will
increase compensation expense.
Forfeiture Rate – This is the estimated percentage of
options granted that are expected to be forfeited or cancelled
before becoming fully vested. An increase in the forfeiture rate
will decrease compensation expense.
The
following tables show all options granted, exercised, expired and
exchanged under the Plan for the three and six months ended June
30, 2011 and 2010:
The
weighted average grant date fair value was $1.95 and $1.76 for all
options outstanding at June 30, 2011 and 2010, respectively. There
was approximately $2,748 and $2,400 of total unrecognized
compensation cost related to non-vested share-based compensation
arrangements as of June 30, 2011 and 2010,
respectively.
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- Definition
The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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Dividends Declared
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6 Months Ended |
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Jun. 30, 2011
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| Dividends Declared |
9. Dividends Declared
On
May 4, 2011, the Company’s Board of Directors authorized a
quarterly dividend of $0.07 per common share, payable on July 15,
2011 to shareholders of record on July 1, 2011.
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- Definition
Disclosure in respect of dividends declared. No definition available.
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Related Party Transactions
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6 Months Ended | ||||||
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Jun. 30, 2011
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| Related Party Transactions |
10. Related Party Transactions
The
Founding Shareholders of the Company, Michael Karfunkel, George
Karfunkel and Barry Zyskind, are also the principal shareholders,
and, respectively, the Chairman of the Board of Directors, a
Director, and the President, Chief Executive Officer and Director
of AmTrust Financial Services, Inc.
(“AmTrust”).
The
following describes transactions between the Company and
AmTrust.
AmTrust Quota Share Reinsurance Agreement
Effective
July 1, 2007, the Company and AmTrust entered into a master
agreement, as amended (the “Master Agreement”), by
which they caused Maiden Insurance Company Ltd. (“Maiden
Bermuda”), a wholly-owned subsidiary of the Company, and
AmTrust’s Bermuda reinsurance subsidiary, AmTrust
International Insurance, Ltd. (“AII”), to enter into a
quota share reinsurance agreement (the “Reinsurance
Agreement”) by which (a) AII retrocedes to Maiden Bermuda an
amount equal to 40% of the premium written by subsidiaries of
AmTrust, net of the cost of unaffiliated inuring reinsurance (and
in the case of AmTrust’s U.K. insurance subsidiary, AmTrust
Europe, Limited, net of commissions) and 40% of losses and (b) AII
transferred to Maiden Bermuda 40% of the AmTrust
subsidiaries’ unearned premium reserves, effective as of July
1, 2007, with respect to the current lines of business, excluding
risks for which the AmTrust subsidiaries’ net retention
exceeds $5,000 (“Covered Business”). AmTrust also has
agreed to cause AII, subject to regulatory requirements, to
reinsure any insurance company which writes Covered Business in
which AmTrust acquires a majority interest to the extent required
to enable AII to cede to Maiden Bermuda 40% of the premiums and
losses related to such Covered Business. The Agreement further
provides that AII receives a ceding commission of 31% of ceded
written premiums. The Reinsurance Agreement had an initial term of
three years, which has been extended for three years through June
30, 2013, and will automatically renew for successive three year
terms thereafter, unless either AII or Maiden Bermuda notifies the
other of its election not to renew not less than nine months prior
to the end of any such three year term. In addition, either party
is entitled to terminate on thirty days’ notice or less upon
the occurrence of certain early termination events, which include a
default in payment, insolvency, change in control of AII or Maiden
Bermuda, run-off, or a reduction of 50% or more of the
shareholders’ equity of Maiden Bermuda or the combined
shareholders’ equity of AII and the AmTrust
subsidiaries.
On
June 11, 2008, Maiden Bermuda and AII amended the Reinsurance
Agreement to add Retail Commercial Package Business to the Covered
Business as a consequence of AmTrust’s acquisition of Unitrin
Business Insurance (“UBI”). Under the amendment,
AmTrust’s subsidiaries cede, upon collection, to Maiden
Bermuda 100% of $82.2 million of unearned premium (net of inuring
reinsurance) from the acquisition of UBI’s in-force book of
business. Additionally, AmTrust cedes to Maiden Bermuda 40% of net
premium written, effective as of June 1, 2008. Maiden Bermuda will
pay to AmTrust a ceding commission of 34.375% on the unearned
premium cession and the Retail Commercial Package Business. The
$2,000 maximum liability for a single loss provided in the
Reinsurance Agreement shall not be applicable to Retail Commercial
Package Business.
On
February 9, 2009, Maiden Bermuda and AII amended the Reinsurance
Agreement to clarify that (i) AII would offer Maiden Bermuda the
opportunity to reinsure Excess Retention Business, which is defined
as a policy issued by an AmTrust insurance subsidiary with respect
to which the insurance subsidiary’s retention is greater than
$5,000 and (ii) the deduction for the cost of inuring reinsurance
from Affiliate Subject Premium (as defined in the Reinsurance
Agreement) retroceded to Maiden Bermuda is net of ceding
commission.
Effective
April 1, 2011, Maiden Bermuda and AII amended the Reinsurance
Agreement to reduce the commission on all business ceded except
Retail Commercial Package Business to 30% until December, 31, 2011.
Thereafter the rate shall be 31% subject to an adjustment of 1% to
30% if the proportion of Specialty Risk and Extended Warranty
premium ceded is greater than or equal to 42% of the Covered
Business (excluding Retail Commercial Package Business). If the
proportion of Specialty Risk and Extended Warranty premium ceded is
greater than or equal to 38% but less than 42% of the Covered
Business (excluding Retail Commercial Package Business), the
commission rate shall be reduced by 0.5% to 30.5%. In addition, the
collateral requirements were restated to clarify that balances
relating to all AmTrust subsidiaries are subject to collateral
requirements and the Reinsurance Agreement was extended by one year
to July 14, 2014, and shall automatically renew for successive
three-year periods thereafter, unless the Reinsurer or Company
elects to terminate this Agreement effective as of July 1, 2014 or
as of the expiration of any successive three-year period. If the
Reinsurer or Company elects to so terminate this Agreement, it
shall give written notice to the other party hereto not less than
nine months prior to either July 1, 2014 or the expiration of any
successive three-year period.
The
Company recorded approximately $35,437 and $71,243 of ceding
commission expense for the three and six months ended June 30,
2011, respectively, (2010 - $31,819 and $66,584, respectively) as a
result of this transaction.
AmTrust European Hospital Liability Quota Share Agreement
(“European Hospital Liability Quota
Share”)
Effective
April 1, 2011, the Company, through Maiden Bermuda, entered into a
quota share reinsurance contract with AmTrust Europe Limited and
AmTrust International Underwriters Limited, both wholly-owned
subsidiaries of AmTrust. Pursuant to the terms of the
contract, Maiden Bermuda will assume 40% of the premiums and losses
related to policies classified as European Hospital Liability,
including associated liability coverages and policies covering
physician defense costs, written or renewed on or after April 1,
2011. The contract also covers policies written or renewed on
or before March 31, 2011, but only with respect to losses that
occur, accrue or arise on or after April 1, 2011. The maximum
limit of liability attaching shall be €5,000 or currency
equivalent (on a 100% basis) per original claim for any one
original policy. Maiden Bermuda will pay a ceding commission of 5%
and shall allow the reinsured a profit share on original net
premiums ceded under the contract. The profit sharing is
based upon the reinsured exceeding defined underwriting performance
of each contract year, commencing two years after the beginning of
each contract year. To the extent that the underwriting
performance is exceeded, the Company will share 50% of the excess
amounts computed. For the three months period ended June 30,
2011, the Company recorded approximately $975 of commission expense
as a result of this transaction.
Other Reinsurance Agreements
Effective
January 1, 2008, Maiden Bermuda and AmTrust entered into an
agreement to reinsure a 45% participation in the $9,000 in excess
of $1,000 layer of AmTrust’s workers’ compensation
excess of loss program. This layer provides reinsurance to AmTrust
for losses per occurrence in excess of $1,000 up to $10,000,
subject to an annual aggregate deductible of $1,250. This
participation was sourced through a reinsurance intermediary via
open market placement in which competitive bids were solicited by
an independent broker. The remaining 55% participation was placed
with a single carrier. This coverage expired on January 1,
2010; as a result, under the Master Agreement, Maiden Bermuda
therefore now reinsures 40% of the subject workers’
compensation business up to $10,000, subject to certain additional
inuring reinsurance protection that AmTrust has
purchased.
As
of January 1, 2008, Maiden Bermuda had a 50% participation in a
$4,000 in excess of $1,000 specialty transportation program written
by AmTrust. Starting January 1, 2009, Maiden Bermuda had a 30%
participation in a $4,000 in excess of $1,000 specialty
transportation program written by AmTrust. This program provides
primarily commercial auto coverage and, to a lesser extent, general
liability coverage to private non-emergency para-transit and school
bus service operators. This participation was sourced through a
reinsurance intermediary via open market placement in which
competitive bids were solicited by an independent broker. Several
other broker market reinsurers hold the other 50% and 70%
participation for 2008 and 2009 policies, respectively. The
agreement was not renewed as of January 1, 2010.
Effective
September 1, 2010, the Company through its indirect wholly-owned
subsidiary, Maiden Specialty Insurance Company (“Maiden
Specialty”), entered into a quota share reinsurance agreement
with Technology Insurance Company, Inc., a subsidiary of AmTrust
(“Technology”). Under the agreement, Maiden Specialty
will cede (a) 90% of its credit insurance business written under
the Open Lending Program (“OPL”) and (b) 100% of its
general liability business under the Naxos Avondale Specialty
Casualty Program (“NAXS”). Maiden Specialty’s
involvement is limited to certain states where Technology is not
fully licensed. The agreement also provides that Maiden Specialty
receives a ceding commission of 5% of ceded written premiums. The
reinsurance agreement has a term of three years and will remain
continuously in force until terminated in accordance to the
provisions set forth in the contract. Maiden Specialty recorded
approximately $1,755 and $2,257 of premiums earned ceded and $542
and $689 ceding commission for the three and six months ended June
30, 2011, respectively.
Effective
September 1, 2010, the Company, through its indirect wholly-owned
subsidiary, Maiden Reinsurance Company (“Maiden US”),
entered into a reinsurance agreement with Security National
Insurance Company (“SNIC”), a subsidiary of AmTrust.
Under the agreement, SNIC will cede 80% of the gross liabilities
produced under the Southern General Agency program to Maiden US.
The agreement provides SNIC with a 5% commission of ceded written
premiums. The agreement has a term of one year. Under this
agreement, Maiden US recorded approximately $0 and $7 of premiums
earned and $0 and $0.1 commission expense for the three and six
months ended June 30, 2011, respectively.
Collateral provided to AmTrust
Maiden
Bermuda satisfied its collateral requirements under the Reinsurance
Agreement with AII as follows:
Reinsurance Brokerage Agreements
Effective
July 1, 2007, the Company entered into a reinsurance brokerage
agreement with AII Reinsurance Broker Ltd. (“AIIB”), a
subsidiary of AmTrust. Pursuant to the brokerage agreement, AIIB
provides brokerage services relating to the Reinsurance Agreement
and, beginning on April 1, 2011, the European Hospital Liability
Quota Share agreement for a fee equal to 1.25% of the premium
reinsured from AII. The brokerage fee is payable in consideration
of AIIB’s brokerage services. AIIB is not the Company’s
exclusive broker. AIIB may, if mutually agreed, also produce
reinsurance for the Company from other ceding companies, and in
such cases the Company will negotiate a mutually acceptable
commission rate. The Company recorded approximately $1,704 and
$3,135 of reinsurance brokerage expense for the three and six
months ended June 30, 2011, respectively, (2010 - $1,271 and
$2,654, respectively) and deferred reinsurance brokerage of $4,706
and $3,552 as of June 30, 2011 and December 31, 2010, respectively,
as a result of these agreements.
The
Company paid brokerage fees to AmTrust’s subsidiary AmTrust
North America of $0 and $37 for the three and six months ended June
30, 2011, respectively, (2010 - $0 and $20, respectively) for
acting as insurance intermediary in relation to certain insurance
placements.
Asset Management Agreement
Effective
July 1, 2007, the Company entered into an asset management
agreement with AII Insurance Management Limited
(“AIIM”), an AmTrust subsidiary, pursuant to which AIIM
has agreed to provide investment management services to the
Company. Pursuant to the asset management agreement, AIIM provides
investment management services for an annual fee equal to 0.35% of
average invested assets plus all costs incurred. Effective April 1,
2008, the investment management services quarterly fee has been
reduced to 0.05% if the average value of the account is less than
or equal to $1,000,000 and 0.0375% if the average value of the
account for the previous calendar quarter is greater than
$1,000,000. The Company recorded approximately $776 and $1,569 of
investment management fees for the three and six months ended June
30, 2011, respectively, (2010 - $662 and $1,318, respectively) as a
result of this agreement.
Other
On
March 1, 2011, the Company entered into a time sharing agreement
for the lease of aircraft owned by AmTrust Underwriters, Inc.
(“AUI”), a wholly-owned subsidiary of AmTrust. The
lease is for 10 months ending on December 31, 2011 and will
automatically renew for successive one-year terms unless terminated
in accordance with the provisions of the agreement. Pursuant to the
agreement, the Company will reimburse AUI for actual expenses
incurred as allowed by Federal Aviation Regulations. For the
six months ended June 30, 2011, the Company recorded an expense of
$42 for the use of the aircraft.
The
following describes transactions between the Company and American
Capital Acquisition Corporation (“ACAC”):
ACAC Quota Share Reinsurance Agreement
On March 1, 2010, Maiden Bermuda entered into a three year 25%
quota share reinsurance agreement with ACAC. ACAC is an insurance
holding company owned by the 2005 Michael Karfunkel Grantor
Retained Annuity Trust (the “Trust”), which is
controlled by Michael Karfunkel (“Karfunkel”),
individually, and AmTrust. ACAC, on March 1, 2010, acquired
from GMAC Insurance Holdings, Inc. and Motors Insurance Corporation
(“Motors”) (collectively, “GMAC”),
GMAC’s personal lines automobile business. Karfunkel is a
Founding Shareholder of the Company. In addition, Karfunkel is the
chairman of the board of directors of ACAC.
The
Company, effective March 1, 2010, reinsures 25% of the net premiums
of the GMAC personal lines business, pursuant to a quota share
reinsurance agreement (“ACAC Quota Share”) with the
GMAC personal lines insurance companies, as cedents, and Maiden
Bermuda, American Capital Partners Re, Ltd., a Bermuda reinsurer
which is a wholly-owned indirect subsidiary of the Trust, and
AmTrust, as reinsurers. The Company has a 50% participation in the
ACAC Quota Share, by which it receives 25% of net premiums of the
personal lines business. The ACAC Quota Share provides that the
reinsurers, severally, in accordance with their participation
percentages, shall receive 50% of the net premium of the GMAC
personal lines insurance companies and assume 50% of the related
net losses. The ACAC Quota Share has an initial term of three years
and shall renew automatically for successive three year terms
unless terminated by written notice not less than nine months prior
to the expiration of the current term. Notwithstanding the
foregoing, Maiden Bermuda’s participation in the ACAC Quota
Share may be terminated by ACAC on 60 days written notice in the
event Maiden Bermuda becomes insolvent, is placed into
receivership, its financial condition is impaired by 50% of the
amount of its surplus at the inception of the ACAC Quota Share or
latest anniversary, whichever is greater, is subject to a change of
control, or ceases writing new and renewal business. ACAC also may
terminate the agreement on nine months written notice following the
effective date of initial public offering or private placement of
stock by ACAC or a subsidiary. Maiden Bermuda may terminate its
participation in the ACAC Quota Share on 60 days written notice in
the event ACAC is subject to a change of control, cease writing new
and renewal business, effects a reduction in their net retention
without Maiden Bermuda’s consent or fails to remit premium as
required by the terms of the ACAC Quota Share. The ACAC Quota Share
provides that the reinsurers pay a provisional ceding commission
equal to 32.5% of ceded earned premium, net of premiums ceded by
the personal lines companies for inuring reinsurance, subject to
adjustment.
The
ceding commission is subject to adjustment to a maximum of 34.5% if
the loss ratio for the reinsured business is 60.5% or less and a
minimum of 30.5% if the loss ratio is 64.5% or higher. We believe
that the terms, conditions and pricing of the ACAC Quota Share have
been determined by arm’s length negotiations and reflect
current market terms and conditions.
Maiden
Bermuda’s recorded approximately $18,665 and $36,302 of
ceding commission expense for the three and six months ended June
30, 2011, respectively, (2010 - $6,611 and $7,290, respectively) as
a result of this transaction.
Other
Maiden
Specialty entered into a reinsurance arrangement with New South
Insurance Company (“New South”), a subsidiary of ACAC.
Pursuant to the agreement, Maiden Specialty cedes 100% of certain
personal lines business to New South. On March 1, 2010, Maiden
Specialty entered into a novation agreement with Motors and New
South whereby New South replaced Motors as the reinsurer for all of
this business. Maiden Specialty recorded approximately $(1.1) and
$(0.6) of ceded premium and $0 and $0.2 of ceding commissions for
the three and six months ended June 30, 2011,
respectively.
In
June 2011, the Company, through Maiden NA, issued $107,500
principal amount of 8.25% Senior Notes due on June 15, 2041, which
are fully and unconditionally guaranteed by the
Company. Maiden NA issued the Senior Notes with the
intent to use the proceeds to repurchase on a pro rata basis
$107,500 of the $260,000 outstanding Trust Preferred
Securities. The Company offered all Trust Preferred
Securities holders the option to have their securities repurchased
on the same terms. American Capital Partners Re, Ltd.,
an entity owned by a trust controlled by Michael Karfunkel, one of
the Founding Shareholders, accepted the offer to repurchase its
$79,066 in principal amount of Trust Preferred
Securities. George Karfunkel purchased $25,000, and ACAC
and AII each purchased $12,500 of the principal amount of the
Senior Notes issued by the Company. The
Company’s Audit Committee reviewed and approved ACAC’s,
AII’s, and George Karfunkel’s participation in this
offering.
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- Definition
The entire disclosure for related party transactions, including the nature of the relationship(s), a description of the transactions, the amount of the transactions, the effects of any change in the method of establishing the terms of the transaction from the previous period, stated interest rate, expiration date, terms and manner of settlement per the agreement with the related party, and amounts due to or from related parties. If the entity and one or more other entities are under common ownership or management control and this control affects the operating results or financial position, disclosure includes the nature of the control relationship even if there are no transactions between the entities. Disclosure may also include the aggregate amount of current and deferred tax expense for each statement of earnings presented where the entity is a member of a group that files a consolidated tax return, the amount of any tax related balances due to or from affiliates as of the date of each statement of financial position presented, the principal provisions of the method by which the consolidated amount of current and deferred tax expense is allocated to the members of the group and the nature and effect of any changes in that method. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| Segments |
11. Segments
The
Company currently operates three business segments: Diversified
Reinsurance, AmTrust Quota Share Reinsurance and ACAC Quota Share.
The Company evaluates segment performance based on segment profit
separately from the results of our investment portfolio. Other
operating expenses allocated to the segments are called General and
Administrative expenses which are allocated on an actual basis
except salaries and benefits where management’s judgment is
applied; the Company does not allocate general corporate expenses
to the segments. In determining total assets by segment, the
Company identifies those assets that are attributable to a
particular segment such as reinsurance receivable, funds withheld,
prepaid reinsurance premiums, reinsurance recoverable on unpaid
losses, deferred commissions and acquisition cost, loans, goodwill
and intangibles, and restricted cash and investments. All remaining
assets are allocated to Corporate.
The
following tables summarize the underwriting results of our
operating segments:
The
following tables set forth financial information relating to gross
and net premiums written and earned by major line of business for
the three and six months ended June 30, 2011 and 2010:
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- Definition
The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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Subsequent Events
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6 Months Ended |
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Jun. 30, 2011
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| Subsequent Events |
12. Subsequent Events
Junior Subordinated Debt
On
July 15, 2011, the Company repurchased in cash a portion of the
outstanding Junior Subordinated Debt with principal amount of
$107,500 together with the 14% repurchase charge of $15,050 using
the net proceeds from the issuance of the Senior Notes and existing
cash, as detailed in Note 6 above. Included in the principal amount
repurchased, were $79,066 of Junior Subordinated Debt held by
American Capital Partners Re, Ltd, which is owned by a trust
established by Michael Karfunkel, one of the Company’s
Founding Shareholders.
Dividends
On
July 27, 2011, the Company’s Board of Directors authorized a
quarterly dividend of $0.08 per common share, payable on October
17, 2011 to shareholders of record on October 3, 2011.
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- Definition
The entire disclosure for significant events or transactions that occurred after the balance sheet date through the date the financial statements were issued or the date the financial statements were available to be issued. Examples include: the sale of a capital stock issue, purchase of a business, settlement of litigation, catastrophic loss, significant foreign exchange rate changes, loans to insiders or affiliates, and transactions not in the ordinary course of business. No definition available.
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