Unassociated Document
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
 
FORM 8-K
 
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
 
Date of Report (Date of earliest event reported): November 2, 2011
 
MAIDEN HOLDINGS, LTD.
 (Exact name of registrant as specified in its charter)
 
Bermuda
(State or other jurisdiction
of incorporation)
 
001-34042
(Commission File
Number)
 
98-0570192
(IRS Employer
Identification No.)
 
131 Front Street, Hamilton HM12, Bermuda
 
(Address of principal executive offices and zip code)
 
(441) 292-7090
 
(Registrant’s telephone number, including area code)
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
 
   
 Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
   
   
 Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
   
   
 Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 
   
   
 Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
   
 
 
 

 
 
Item 2.02
Results of Operations and Financial Condition.
 
On November 2, 2011, Maiden Holdings, Ltd. (the “Company”) issued a press release announcing its results of operations for the fiscal quarter ended September 30, 2011.  A copy of the press release is furnished herewith as Exhibit 99.1 and incorporated herein by reference.
 
The information contained in this Item 2.02 and in the accompanying exhibit shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) or otherwise subject to the liabilities of that section, or incorporated by reference in any filing under the Exchange Act or the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such filing.

Item 8.01
Other Events.
 
On November 2, 2011, Maiden Holdings, Ltd. also issued a press release announcing a quarterly cash dividend of $0.08 per share of common stock payable on January 17, 2012 to shareholders of record as of January 2, 2012.  A copy of the press release is hereby filed with the Commission and incorporated by reference herein as Exhibit 99.2.
 
 
Item 9.01
Financial Statements and Exhibits.
 
(d)           Exhibits
 
Exhibit    
No.
 
Description
     
99.1
 
Press Release of Maiden Holdings, Ltd., dated November 2, 2011.
     
99.2
 
Press Release of Maiden Holdings, Ltd., dated November 2, 2011.
 
 
 

 
 
SIGNATURES
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 

 
Date:  November 2, 2011
MAIDEN HOLDINGS, LTD.
   
    
 
 
 
 By:
/s/ Lawrence F. Metz
   
Lawrence F. Metz
   
Senior Vice President, General Counsel and
Secretary
 
 
 

 
 
EXHIBIT INDEX
 
Exhibit
   
No.
 
Description
     
99.1
 
Press Release of Maiden Holdings, Ltd., dated November 2, 2011.
     
99.2
 
Press Release of Maiden Holdings, Ltd., dated November 2, 2011.

 
Unassociated Document
November 2, 2011

 
Maiden Holdings, Ltd. Reports Third Quarter 2011 Operating Earnings(1) of $21.4 Million or $0.29 per Diluted Share
 
Key Highlights:
 
·  
Annualized Operating Return on Equity(1) of 11.1% for third quarter
 
·  
Book Value per Share(4) of $10.63, up 2.2% versus Year-End 2010
 
·  
Net operating earnings(1) of $21.4 million, or $0.29 per diluted share compared with $18.0 million, or $0.25 per diluted share in the comparative quarter in 2010
 
·  
No adverse impact from third quarter 2011 catastrophes
 
·  
Net premium written increased by 56.7% to $428.6 million and 46.5% to $1.315 billion for the third quarter and year to date 2011, respectively
 
·  
Interest expense $0.9 million lower during the quarter following repurchase of $107.5 million of trust preferred securities following June 2011 debt issuance
 
 
HAMILTON, Bermuda - Maiden Holdings, Ltd. (Nasdaq:  MHLD) today reported third quarter 2011 net income of $16.0 million, or $0.22 per diluted share compared with $18.5 million or $0.26 per diluted share in the third quarter of 2010.  Net operating earnings(1) for the third quarter of 2011 were $21.4 million, or $0.29 per diluted share compared with $18.0 million, or $0.25 per diluted share in the comparative quarter in 2010.
 
Commenting on the Company’s earnings, Art Raschbaum, Chief Executive Officer of Maiden Holdings, said: “We are very pleased with our third quarter results which reflect continued underwriting discipline, solid operating performance, and continued expansion of our underwriting portfolio.   Our growth in the quarter is the result of our 2010 international acquisition, expansion of existing client relationships, and the addition of several new client relationships.  In the quarter, we continued to leverage Maiden’s specialist focus on serving the non-catastrophe needs of regional and specialty insurers, our highly efficient operating platform, our unique collateral trust, and our focus on the needs of our clients.  Importantly, reflecting our unique business model and careful risk management, the widespread catastrophe losses experienced by the industry in the third quarter of 2011 did not adversely impact Maiden’s results. We remain committed to delivering increasing value to our shareholders and customers.”
 
Results for the three months ended September 30, 2011
 
Net income was $16.0 million, or $0.22 per diluted share compared to $18.5 million or $0.26 per diluted share in the third quarter of 2010.  Net operating earnings(1) of $21.4 million, or $0.29 per diluted share increased 18.9% compared with $18.0 million, or $0.25 per diluted share in the comparative quarter of 2010.
 
 
 

 
 
November 2, 2011
 
 
Net premiums written were up 56.7% or $155.2 million to $428.6 million in the third quarter of 2011 compared to 2010.  This was attributable to increases in all three business segments, with the Diversified Reinsurance segment experiencing the largest gain, up 80.6%.  The increase in the Diversified Reinsurance segment primarily resulted from international personal auto reinsurance premiums obtained through the acquisition of GMAC International Insurance Services, Ltd in the fourth quarter of 2010, as well as growth in premium from new and existing U.S. client relationships.  The net premiums written in the AmTrust Quota Share Reinsurance increased 57.3% due primarily to an increase in the amount of business AmTrust writes generally and to a lesser extent, the 40% quota share of AmTrust’s European hospital liability business that incepted during the second quarter of 2011.  Net premium written from the 25% quota share with ACAC increased 13.2% reflecting growth in this segment.
 
Net premiums earned of $420.3 million, increased 35.8% or $110.7 million compared to the third quarter of 2010.  Earned premiums increased across all business lines with Diversified Reinsurance up 38.9%, AmTrust Quota Share Reinsurance up 32.2% and ACAC Quota Share up 35.3%.
 
Net investment income of $18.7 million increased 7.1% compared to the third quarter of 2010.  Total investments increased $19.8 million to $1.90 billion or 1.1% versus December 31, 2010.  The book yield on the fixed income portfolio (excluding cash) is 3.84% with an average duration of 2.78 years.
 
Net loss and loss adjustment expenses of $274.5 million were up $73.9 million.  The loss ratio(6) improved 0.2 percentage points to 64.6% versus the third quarter of 2010.
 
Commission and other acquisition expenses together with general and administrative expenses of $139.3 million increased $39.5 million from the year ago quarter and reflected a total expense ratio of 32.8% compared with 32.2%. General and administrative expenses for the quarter totaled $12.5 million compared with $10.8 million in the third quarter of 2010. These results reflected a general and administrative expense ratio(8) of 3.0% compared to 3.5% in the third quarter of 2010.
 
The combined ratio(9) for the third quarter totaled 97.4% compared with 97.0% in the comparative quarter in 2010.
 
Total assets increased 9.2% to $3.26 billion compared to $2.98 billion at year-end 2010.  Total cash on hand was $243.1 million, comprised of cash and cash equivalents of $146.3 million, up 52% compared to $96.2 million at the end of last year, and restricted cash and cash equivalents of $96.8 million, an increase of 7.8% since the end of 2010.  Shareholders’ equity was $767.2 million, an increase of 2.3% compared to December 31, 2010.
 
During the third quarter of 2011, the Board of Directors declared a dividend of $0.08 per share.
 
 
 

 

November 2, 2011
 
 
Results for the nine months ended September 30, 2011
 
Net income for the nine months ended September 30, 2011 was $11.0 million compared to $50.7 million in the same period in 2010.  Net operating earnings(1) of 52.4 million, or $0.72 per diluted share compared to $55.4 million or $0.78 per diluted share in the same period of 2010.  Annualized operating return on equity(1) was 9.2% compared to 10.3% in the first nine months of 2010.
 
Significant non-operating expenses during the first nine months of 2011 included charges related to the redemption of $107.5 million of junior subordinated debt with proceeds from the June 2011 Senior Notes offering.  The year-to-date 2011 results include $15.1 million of junior subordinated debt repurchase expense and $20.3 million of accelerated amortization of subordinated debt discount and issuance costs. The 2011 results also include $9.5 million in losses related to thunderstorm and tornado activity across the U.S. in the second quarter, net of the Company’s quarterly provisions for normalized catastrophe activity compared to no catastrophe losses in the same period in 2010.
 
Net premiums written rose 46.5% or $417.3 million to $1,315.1 million compared to the same period in 2010.  All three business segments saw increases in excess of 30% with the largest increase coming from the AmTrust Quota Share Reinsurance which was up 51.5% due to the growth of AmTrust’s business generally and the addition of the European hospital liability business as of the second quarter 2011.  The Diversified Reinsurance segment increased 48.0% due to the additional premium obtained from GMAC International Insurance Services, Ltd. and organic growth from current and new business.  The net premiums written in the ACAC segment increased 30.6% compared to last year as 2011 is the first full year of that quota share, which incepted in March 2010.
 
Net premiums earned of $1,134.6 million, increased 32.3% or $277.3 million compared to the first nine months of 2010.  Earned premiums increased across all business lines with Diversified Reinsurance up 19.0%, AmTrust Quota Share Reinsurance up 23.2% and ACAC Quota Share up 164.1%.
 
Net investment income of $57.7 million was up 7.0% compared to the same period in 2010.
 
Net loss and loss adjustment expenses of $746.3 million were up $200.0 million.  The loss ratio(6) increased 1.4 percentage points to 65.1% versus the first nine months of 2010.
 
Commission and other acquisition expenses together with general and administrative expenses of $377.3 million increased $93.6 million from the year ago period and reflected a total expense ratio of 32.9% compared with 33.1%. General and administrative expenses for the nine months totaled $37.6 million compared with $28.9 million in the first nine months of 2010. These results reflected a general and administrative expense ratio(8) of 3.3% in 2011 and 3.4% for the comparative period last year.
 
 
The combined ratio(9) for first nine months of 2011 totaled 98.0% largely reflecting the impact of second quarter weather losses in the U.S. compared with 96.8% for the same period in 2010.
 
 
 

 
 
November 2, 2011

 
Conference Call
 
Maiden CEO Art Raschbaum and CFO John Marshaleck will review these results tomorrow morning via teleconference and live audio webcast beginning at 9:00 a.m. ET.
 
To participate in the conference call, please access one of the following no later than 8:55 a.m. ET:
U.S. Callers: 1.877.734.5373
Outside U.S. Callers: 1.973.200.3059
 
Passcode: 20359242
Webcast: http://www.maiden.bm/presentations_conferences
 
A replay of the conference call will be available beginning 12:00 p.m. EDT on November 3, 2011 through midnight on November 10, 2011. To listen to the replay, please dial toll free: 1.855.859.2056 (U.S. Callers) or toll: 1.404.537.3406 (callers outside the U.S.) and enter the Passcode: 20359242; or access http://www.maiden.bm/presentations_conferences
 
About Maiden Holdings, Ltd.
 
Maiden Holdings, Ltd. is a Bermuda-based holding company formed in 2007.  Through its subsidiaries, which are each A- rated (excellent) by A.M. Best, the Company is focused on providing non-catastrophic, customized reinsurance products and services to small and mid-size insurance companies in the United States and Europe. As of September 30, 2011, Maiden had $3.26 billion in assets and shareholders' equity of $767.2 million.
 
The Maiden Holdings, Ltd. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=5006
 
(1)(4)Please see the Non-GAAP Financial Measures table for additional information on these non-GAAP financial measures and reconciliation of these measures to GAAP measures.
 
(6)(8)(9) Loss ratio and combined ratio are operating metrics. Please see the additional information on these measures under Segment information tables.
 
Forward Looking Statements
 
This release contains "forward-looking statements" which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The forward-looking statements are based on the Company's current expectations and beliefs concerning future developments and their potential effects on the Company. There can be no assurance that actual developments will be those anticipated by the Company. Actual results may differ materially from those projected as a result of significant risks and uncertainties, including non-receipt of the expected payments, changes in interest rates, effect of the performance of financial markets on investment income and fair values of investments, developments of claims and the effect on loss reserves, accuracy in projecting loss reserves, the impact of competition and pricing environments, changes in the demand for the Company's products, the effect of general economic conditions and unusual frequency of storm activity, adverse state and federal legislation, regulations and regulatory investigations into industry practices, developments relating to existing agreements, heightened competition, changes in pricing environments, and changes in asset valuations. Additional information about these risks and uncertainties, as well as others that may cause actual results to differ materially from those projected is contained in Item 1A. Risk Factors in the Company's Annual Report on Form 10-K for the year ended December 31, 2010 as updated in periodic filings with the SEC. The Company undertakes no obligation to publicly update any forward-looking statements, except as may be required by law.
 
 
 

 
 
November 2, 2011
 

 
CONTACT:
 
Noah Fields, Vice President, Investor Relations
Maiden Holdings, Ltd.
Phone: 441.298.4927
E-mail: nfields@maiden.bm
 
 
 

 
 
Maiden Holdings, Ltd.
 
Balance Sheet
 
(in thousands (000's), except per share data)
 
             
             
   
September 30, 2011
(Unaudited)
   
December 31, 2010
(Audited)
 
Assets
           
Fixed maturities, available-for-sale, at fair value (amortized cost $1,821,751;  $1,819,775)
  $ 1,898,070     $ 1,874,433  
Other investments, at fair value (cost $1,812; $5,751)
    2,010       5,847  
Total investments
    1,900,080       1,880,280  
Cash and cash equivalents
    146,308       96,151  
Restricted cash and cash equivalents
    96,770       89,756  
Accrued investment income
    11,344       14,091  
Reinsurance balances receivable, net
    372,521       226,333  
Funds withheld
    143,952       152,713  
Prepaid reinsurance premiums
    39,339       28,992  
Reinsurance recoverable on unpaid losses
    12,573       6,656  
Loan to related party
    167,975       167,975  
Deferred commission and other acquisition costs
    248,144       203,631  
Goodwill and intangible assets, net
    100,026       103,905  
Other assets
    17,035       12,079  
Total Assets
  $ 3,256,067     $ 2,982,562  
Liabilities and  Equity
               
Liabilities
               
Reserve for loss and loss adjustment expenses
  $ 1,325,836     $ 1,226,773  
Unearned premiums
    845,424       657,556  
Accrued expenses and other liabilities
    83,507       56,368  
Securities sold under agreements to repurchase, at contract value
    -       76,225  
Senior notes
    107,500       -  
Junior subordinated debt
    126,251       215,191  
Total Liabilities
    2,488,518       2,232,113  
                 
Equity:
               
Common shares
    732       731  
Additional paid-in capital
    578,634       577,135  
Accumulated other comprehensive income
    74,762       54,334  
Retained earnings
    116,882       121,775  
Treasury stock, at cost
    (3,801 )     (3,801 )
Total Maiden Shareholders’ Equity
    767,209       750,174  
Noncontrolling interest in subsidiaries
    340       275  
Total Equity
    767,549       750,449  
Total Liabilities and Equity
  $ 3,256,067     $ 2,982,562  
                 
                 
Book value per share (4)
  $ 10.63     $ 10.40  
                 
Common shares outstanding
    72,206,272       72,107,100  
 
 
 
 

 
 
Maiden Holdings, Ltd.
 
Income Statement
 
(in thousands (000's), except per share data)
 
(Unaudited)
 
                         
                         
   
For the Three
Months Ended September 30,
2011
   
For the Three
Months Ended September 30,
2010
   
For the Nine
Months Ended September 30,
2011
   
For the Nine
Months Ended September 30,
2010
 
                         
Revenues:
                       
Gross premiums written
  $ 451,130     $ 289,815     $ 1,384,302     $ 951,981  
                                 
Net premiums written
  $ 428,586     $ 273,435     $ 1,315,052     $ 897,776  
Change in unearned premiums
    (8,309 )     36,158       (180,457 )     (40,470 )
Net premiums earned
    420,277       309,593       1,134,595       857,306  
Other insurance revenue
    4,530       -       11,364       -  
Net investment income
    18,749       17,500       57,708       53,956  
Net realized and unrealized investment (losses) gains
    (2,900 )     1,627       (2,262 )     2,474  
Total revenues
    440,656       328,720       1,201,405       913,736  
Expenses:
                               
Net loss and loss adjustment expenses
    274,504       200,625       746,285       546,264  
Commission and other acquisition expenses
    126,777       88,956       339,673       254,799  
General and administrative expenses
    12,475       10,840       37,607       28,876  
Total expenses
    413,756       300,421       1,123,565       829,939  
                                 
Income from operations (2)
    26,900       28,299       77,840       83,797  
                                 
Other expense
                               
Amortization of intangible assets
    (1,258 )     (1,452 )     (3,775 )     (4,356 )
Foreign exchange (losses) gains
    (1,103 )     1,187       898       (380 )
Interest and amortization expenses
    (8,178 )     (9,117 )     (26,588 )     (27,348 )
Accelerated amortization of junior subordinated debt discount and issuance cost
    -       -       (20,313 )     -  
Junior subordinated debt repurchase expense
    -       -       (15,050 )     -  
      (10,539 )     (9,382 )     (64,828 )     (32,084 )
                                 
Income before income taxes
    16,361       18,917       13,012       51,713  
Income taxes:
                               
Current tax expense
    203       100       1,299       100  
Deferred tax expense
    156       291       738       881  
Income tax expense
    359       391       2,037       981  
                                 
Net income
    16,002       18,526       10,975       50,732  
Add: Loss attributable to noncontrolling interest
    2       -       5       -  
Net income attributable to Maiden shareholders
  $ 16,004     $ 18,526     $ 10,980     $ 50,732  
Net operating earnings attributable to Maiden shareholders (1)
  $ 21,429     $ 18,018     $ 52,411     $ 55,419  
                                 
Basic earnings per common share attributable to Maiden shareholders
  $ 0.22     $ 0.26     $ 0.15     $ 0.72  
Diluted earnings per common share attributable to Maiden shareholders
  $ 0.22     $ 0.26     $ 0.15     $ 0.72  
Basic operating earnings per common share attributable to Maiden shareholders
  $ 0.30     $ 0.26     $ 0.73     $ 0.79  
Diluted operating earnings per common share attributable to Maiden shareholders
  $ 0.29     $ 0.25     $ 0.72     $ 0.78  
                                 
Dividends declared per common share
  $ 0.08     $ 0.065     $ 0.22     $ 0.195  
                                 
Weighted average number of basic shares outstanding
    72,182,759       70,493,545       72,136,366       70,359,688  
Weighted average number of diluted shares outstanding
    72,921,968       70,985,382       72,883,334       70,843,462  
                                 
Net Loss and loss adjustment expense ratio (6)
    64.6 %     64.8 %     65.1 %     63.7 %
Commission and other acquisition expense ratio (7)
    29.8 %     28.7 %     29.6 %     29.7 %
General  and administrative expense ratio (8)
    3.0 %     3.5 %     3.3 %     3.4 %
Combined ratio (9)
    97.4 %     97.0 %     98.0 %     96.8 %
Annualized return on equity
    8.3 %     9.9 %     1.9 %     9.5 %
Annualized return on equity on operating earnings
    11.1 %     9.6 %     9.2 %     10.3 %
 
 
 

 
 
Maiden Holdings, Ltd.
 
Non - GAAP Financial Measure
 
(in thousands (000's), except per share data)
 
(Unaudited)
 
                         
                         
 
For the Three Months Ended September 30, 2011
 
For the Three Months Ended September 30, 2010
   
For the Nine Months Ended September 30, 2011
   
For the Nine Months Ended September 30, 2010
 
                         
Reconciliation of net income to net operating earnings:
                       
Net income attributable to Maiden shareholders
  $ 16,004     $ 18,526     $ 10,980     $ 50,732  
Add (subtract)
                               
Net realized and unrealized investment losses (gains)
    2,900       (1,627 )     2,262       (2,474 )
Foreign exchange losses (gains)
    1,103       (1,187 )     (898 )     380  
Amortization of intangible assets
    1,258       1,452       3,775       4,356  
Accelerated amortization of junior subordinated debt discount and issuance cost
    -       -       20,313       -  
Junior subordinated debt repurchase expense
    -       -       15,050       -  
Non-recurring general and administrative expenses relating to acquisition of GMAC International Insurance
    8       563       191       1,544  
Non-cash deferred tax charge
    156       291       738       881  
Net operating earnings attributable to Maiden shareholders (1)
  $ 21,429     $ 18,018     $ 52,411     $ 55,419  
                                 
Operating earnings per common share attributable to Maiden shareholders:
                               
                                 
Basic earnings per common share attributable to Maiden shareholders
  $ 0.30     $ 0.26     $ 0.73     $ 0.79  
Diluted earnings per common share attributable to Maiden shareholders
  $ 0.29     $ 0.25     $ 0.72     $ 0.78  
                                 
Reconciliation of net income to income from operations:
                               
Net income attributable to Maiden shareholders
  $ 16,004     $ 18,526     $ 10,980     $ 50,732  
Add (subtract)
                               
Foreign exchange losses (gains)
    1,103       (1,187 )     (898 )     380  
Amortization of intangible assets
    1,258       1,452       3,775       4,356  
Interest and amortization expenses
    8,178       9,117       26,588       27,348  
Accelerated amortization of junior subordinated debt discount and issuance cost
    -       -       20,313       -  
Junior subordinated debt repurchase expense
    -       -       15,050       -  
Income tax expense
    359       391       2,037       981  
Loss attributable to noncontrolling interest
    (2 )     -       (5 )     -  
Income from operations (2)
  $ 26,900     $ 28,299     $ 77,840     $ 83,797  
                                 
 
September 30, 2011
 
December 31, 2010
                 
Investable assets:
                               
Total investments
  $ 1,900,080     $ 1,880,280                  
Cash and cash equivalents
    146,308       96,151                  
Restricted cash and cash equivalents
    96,770       89,756                  
Funds withheld (3)
    119,491       119,000                  
Loan to related party
    167,975       167,975                  
Total investable assets (3)
  $ 2,430,624     $ 2,353,162                  
                                 
 
September 30, 2011
 
December 31, 2010
                 
Capital:
                               
Senior notes
  $ 107,500     $ -                  
Junior subordinated debt
    126,251       215,191                  
Total Maiden shareholders' equity
    767,209       750,174                  
Total capital (5)
  $ 1,000,960     $ 965,365                  
 
(1) Net operating earnings is a non-GAAP financial measure defined by the Company as net income attributable to Maiden shareholders excluding realized investment gains and losses, foreign exchange gains and losses, amortization of intangible assets, accelerated amortization of junior subordinated debt discount and issuance cost, junior subordinated debt repurchase expense, non-recurring general and administrative expenses relating to acquisition and non-cash deferred tax charge and should not be considered as an alternative to net income. The Company's management believes that net operating earnings is a useful indicator of trends in the Company's underlying operations. The Company's measure of net operating earnings may not be comparable to similarly titled measures used by other companies.
                         
(2) Income from Operations is a non-GAAP financial measure defined by the Company as net income attributable to Maiden shareholders excluding foreign exchange  gains and losses, amortization of intangible assets, interest and amortization expenses, accelerated amortization of junior subordinated debt discount and issuance cost, junior subordinated debt repurchase expense, income tax expense and loss attributable to noncontrolling interest and should not be considered as an alternative to net income.  The Company’s management believes that income from operations is a useful measure of the Company’s underlying earnings fundamentals based on its underwriting and investment income before financing costs. This income from operations enables readers of this information to more clearly understand the essential operating results of the Company. The Company’s measure of income from operations may not be comparable to similarly titled measures used by other companies.
                         
(3) Investable assets is the total of the Company's investments, cash and cash equivalents, loan to a related party and the portion of the funds withheld balance that comprises fixed maturity securities and cash and cash equivalents.
                         
(4) Calculated by dividing total Maiden shareholders' equity by total common shares outstanding.
           
                         
(5) Capital is the total of the Company's senior notes, junior subordinated debt and shareholders' equity.
           
 
 
 

 
 
Maiden Holdings, Ltd.
Supplemental Financial Data - Segment Information
(in thousands (000's))
(Unaudited)
 
For the Three Months Ended September 30, 2011
 
Diversified Reinsurance
   
AmTrust Quota
Share Reinsurance
   
ACAC Quota
Share
   
Total
 
Net premiums written
  $ 188,652     $ 173,502     $ 66,432     $ 428,586  
Net premiums earned
    197,803       159,668       62,806       420,277  
Other insurance revenue
    4,530       -       -       4,530  
Net loss and loss adjustment expenses
    (123,267 )     (110,727 )     (40,510 )     (274,504 )
Commissions and other acquisition expenses
    (62,032 )     (44,845 )     (19,900 )     (126,777 )
General and administrative expenses
    (8,468 )     (538 )     (408 )     (9,414 )
Underwriting income
  $ 8,566     $ 3,558     $ 1,988     $ 14,112  
                                 
Reconciliation to net income before income taxes
                               
Net investment income and realized and unrealized investment gains (losses)
                      15,849  
Amortization of intangible assets
                            (1,258 )
Foreign exchange losses
                            (1,103 )
Interest and amortization expenses
                            (8,178 )
Accelerated amortization of junior subordinated debt discount and issuance cost
                      -  
Junior subordinated debt repurchase expense
                            -  
Other general and administrative expenses
                            (3,061 )
                                 
Net income before income taxes
                          $ 16,361  
                                 
Net loss and loss expense ratio (6)
    60.9 %     69.3 %     64.5 %     64.6 %
Acquisition cost ratio (7)
    30.7 %     28.1 %     31.7 %     29.8 %
General and administrative expense ratio (8)
    4.2 %     0.4 %     0.6 %     3.0 %
Combined ratio (9)
    95.8 %     97.8 %     96.8 %     97.4 %
                                 
                                 
                                 
                                 
For the Three Months Ended September 30, 2010
 
Diversified Reinsurance
   
AmTrust Quota
Share Reinsurance
   
ACAC Quota
Share
   
Total
 
Net premiums written
  $ 104,452     $ 110,313     $ 58,670     $ 273,435  
Net premiums earned
    142,419       120,747       46,427       309,593  
Net loss and loss adjustment expenses
    (95,409 )     (76,199 )     (29,017 )     (200,625 )
Commissions and other acquisition expenses
    (34,228 )     (39,011 )     (15,717 )     (88,956 )
General and administrative expenses
    (6,745 )     (220 )     (124 )     (7,089 )
Underwriting income
  $ 6,037     $ 5,317     $ 1,569     $ 12,923  
                                 
Reconciliation to net income before income taxes
                               
Net investment income and realized investment gains (losses)
                            19,127  
Amortization of intangible assets
                            (1,452 )
Foreign exchange gains
                            1,187  
Interest and amortization expenses
                            (9,117 )
Other general and administrative expenses
                            (3,751 )
                                 
Net income before income taxes
                          $ 18,917  
                                 
Net loss and loss expense ratio (6)
    67.0 %     63.1 %     62.5 %     64.8 %
Acquisition cost ratio (7)
    24.0 %     32.3 %     33.9 %     28.7 %
General and administrative expense ratio (8)
    4.8 %     0.2 %     0.2 %     3.5 %
Combined ratio (9)
    95.8 %     95.6 %     96.6 %     97.0 %
 
(6) Calculated by dividing net loss and loss adjustment expenses by net premiums earned and other insurance revenue.
       
(7) Calculated by dividing commission and other acquisition expenses by net premiums earned and other insurance revenue.
       
(8) Calculated by dividing general and administrative expenses by net premiums earned and other insurance revenue.
       
(9) Calculated by adding together net loss and loss expense ratio, acquisition cost ratio and general and administrative expense ratio.
   
 
 
 

 
 
Maiden Holdings, Ltd.
Supplemental Financial Data - Segment Information
(in thousands (000's))
(Unaudited)
 
 
For the Nine Months Ended September 30, 2011
 
Diversified
Reinsurance
   
AmTrust Quota
Share Reinsurance
   
ACAC Quota
Share
   
Total
 
Net premiums written
  $ 605,490     $ 516,665     $ 192,897     $ 1,315,052  
Net premiums earned
    542,325       410,441       181,829       1,134,595  
Other insurance revenue
    11,364       -       -       11,364  
Net loss and loss adjustment expenses
    (349,999 )     (279,006 )     (117,280 )     (746,285 )
Commissions and other acquisition expenses
    (161,709 )     (120,198 )     (57,766 )     (339,673 )
General and administrative expenses
    (24,805 )     (1,802 )     (1,423 )     (28,030 )
Underwriting income
  $ 17,176     $ 9,435     $ 5,360     $ 31,971  
                                 
Reconciliation to net income before income taxes
                               
Net investment income and realized and unrealized investment gains (losses)
                      55,446  
Amortization of intangible assets
                            (3,775 )
Foreign exchange gains
                            898  
Interest and amortization expenses
                            (26,588 )
Accelerated amortization of junior subordinated debt discount and issuance cost
                      (20,313 )
Junior subordinated debt repurchase expense
                            (15,050 )
Other general and administrative expenses
                            (9,577 )
                                 
Net income before income taxes
                          $ 13,012  
                                 
Net loss and loss expense ratio (6)
    63.2 %     68.0 %     64.5 %     65.1 %
Acquisition cost ratio (7)
    29.2 %     29.3 %     31.8 %     29.6 %
General and administrative expense ratio (8)
    4.5 %     0.4 %     0.8 %     3.3 %
Combined ratio (9)
    96.9 %     97.7 %     97.1 %     98.0 %
                                 
                                 
For the Nine Months Ended September 30, 2010
 
Diversified
Reinsurance
   
AmTrust Quota
Share Reinsurance
   
ACAC Quota
Share
   
Total
 
Net premiums written
  $ 409,075     $ 340,992     $ 147,709     $ 897,776  
Net premiums earned
    455,378       333,070       68,858       857,306  
Net loss and loss adjustment expenses
    (294,044 )     (209,184 )     (43,036 )     (546,264 )
Commissions and other acquisition expenses
    (123,128 )     (108,249 )     (23,422 )     (254,799 )
General and administrative expenses
    (18,343 )     (1,292 )     (124 )     (19,759 )
Underwriting income
  $ 19,863     $ 14,345     $ 2,276     $ 36,484  
                                 
Reconciliation to net income before income taxes
                               
Net investment income and realized investment gains (losses)
                            56,430  
Amortization of intangible assets
                            (4,356 )
Foreign exchange losses
                            (380 )
Interest and amortization expenses
                            (27,348 )
Other general and administrative expenses
                            (9,117 )
                                 
Net income before income taxes
                          $ 51,713  
                                 
Net loss and loss expense ratio (6)
    64.6 %     62.8 %     62.5 %     63.7 %
Acquisition cost ratio (7)
    27.0 %     32.5 %     34.0 %     29.7 %
General and administrative expense ratio (8)
    4.0 %     0.4 %     0.2 %     3.4 %
Combined ratio (9)
    95.6 %     95.7 %     96.7 %     96.8 %
 
(6) Calculated by dividing net loss and loss adjustment expenses by net premiums earned and other insurance revenue.
       
(7) Calculated by dividing commission and other acquisition expenses by net premiums earned and other insurance revenue.
       
(8) Calculated by dividing general and administrative expenses by net premiums earned and other insurance revenue.
         
(9) Calculated by adding together net loss and loss expense ratio, acquisition cost ratio and general and administrative expense ratio.
     
Unassociated Document
 
PRESS RELEASE
 
Maiden Holdings Announces Quarterly Dividend

HAMILTON, Bermuda, November 2, 2011 -- Maiden Holdings, Ltd. (Nasdaq: MHLD) today announced that its Board of Directors approved a quarterly cash dividend of $0.08 per share of common stock. The dividend will be payable on January 17, 2012 to shareholders of record as of January 2, 2012.
 
About Maiden Holdings, Ltd.
 
Maiden Holdings, Ltd. is a Bermuda-based holding company formed in 2007.  Through its subsidiaries, which are each A- rated (excellent) by A.M. Best, the Company is focused on providing non-catastrophic, customized reinsurance products and services to small and mid-size insurance companies in the United States and Europe. As of September 30, 2011, Maiden had $3.26 billion in assets and shareholders' equity of $767.2 million.
 
The Maiden Holdings, Ltd. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=5006
 
 
CONTACT:
 
Noah Fields, Vice President, Investor Relations
Maiden Holdings, Ltd.
Phone: 441.298.4927
E-mail: nfields@maiden.bm