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): February 22, 2012

 

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 February 22, 2012, Maiden Holdings, Ltd. (the “Company”) issued a press release announcing its results of operations for the fourth quarter and fiscal year ended December 31, 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 February 22, 2012, Maiden Holdings, Ltd. also issued a press release announcing a quarterly cash dividend of $0.08 per share of common stock payable on April 16, 2012 to shareholders of record as of April 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 February 22, 2012.

 

99.2

Press Release of Maiden Holdings, Ltd., dated February 22, 2012.

 

 

 
 

 

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:  February 22, 2012

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 February 22, 2012.

 

99.2

Press Release of Maiden Holdings, Ltd., dated February 22, 2012.

 

 

 

 

 

Maiden Holdings, Ltd. Reports Fourth Quarter 2011 Net Income of $17.5 million or $0.24 per Diluted Share and Operating Earnings(1) of $17.2 million or $0.24 per Diluted Share
 

 

Fourth Quarter 2011 Highlights

Annualized Operating Return on Equity (1) of 8.9%   
Net operating earnings (1) of $17.2 million, or $0.24 per diluted share compared with $17.2 million, or $0.24 per diluted share in the comparative quarter in 2010
Net premiums written increased by 23.8% to $408.5 million compared to the fourth quarter 2010
Combined ratio of 98.3% versus 97.3% in the fourth quarter of 2010

 

Full Year 2011 Highlights

Operating Return on Equity (1) of 9.2%  
Book Value per Share(4) of $10.64, up 2.3% versus Year-End 2010 
Net operating earnings (1) of $69.6 million, or $0.96 per diluted share compared with $72.7 million, or $1.02 per diluted share in 2010
Net investment income of $74.9 million up 4.5% compared to last year
Net premiums written increased 40.4% to $1.7 billion
Combined ratio of 98.1% versus 96.9% in 2010
2011 was impacted by $9.5 million or $0.13 per share of losses from second quarter U.S. thunderstorm and tornado activity
Senior Notes offering $107.5 million reduced 2011 interest expense by $2.3 million or $0.03 per share

 

HAMILTON, Bermuda - Maiden Holdings, Ltd. (Nasdaq:  MHLD) today reported fourth quarter 2011 net income of $17.5 million, or $0.24 per diluted share compared with $19.1 million or $0.27 per diluted share in the fourth quarter of 2010.  Net operating earnings(1) for the fourth quarter of 2011 were $17.2 million, or $0.24 per diluted share compared with $17.2 million, or $0.24 per diluted share in the comparative quarter in 2010.

 

Commenting on the Company's earnings, Art Raschbaum, Chief Executive Officer of Maiden Holdings, said: “In one of the worst years for insured catastrophic losses on record, Maiden's 2011 results demonstrate the effectiveness of our lower volatility business model. Despite the challenging operating environment, Maiden reported a full year profitable combined ratio of 98.1% and an operating return on equity of 9.2%. For 2012 we are encouraged by the prospect for improving rates. Our focus this year will be on strengthening underwriting performance and investment earnings by deploying our significant year end cash balance. We remain committed to increasing shareholder value and delivering superior reinsurance solutions to our clients.” 

 

Results for the three months ended December 31, 2011

 

Net income was $17.5 million, or $0.24 per diluted share compared to $19.1 million or $0.27 per diluted share in the fourth quarter of 2010.  Net operating earnings(1) of $17.2 million, or $0.24 per diluted share compared with $17.2 million, or $0.24 per diluted share in the comparative quarter of 2010.

  

Net premiums written were up 23.8% or $78.4 million to $408.5 million in the fourth quarter of 2011 compared to 2010.  The increase was prevalent across Maiden's three business segments, led by the Diversified Reinsurance segment, up 32.8%.  Growth from this segment reflects the continued growth of Maiden Re, the Company's US reinsurance subsidiary. Maiden Re, which focuses on regional reinsurers, has experienced growth from expansion of existing client relationships and as a result of increased demand following the high frequency of weather losses in the second quarter of 2011. The AmTrust Quota Share Reinsurance net premiums written increased 20.1% as AmTrust's core premiums increased. Maiden also continued to participate in the 40% quota share of AmTrust's European hospital liability business. Net premiums written from the 25% quota share with ACAC increased by 9.1% reflecting growth in its underlying business.

 

Net premiums earned of $417.8 million, increased 33.7% or $105.3 million compared to the fourth quarter of 2010.  Earned premiums increased across all business lines with Diversified Reinsurance up 41.3%, AmTrust Quota Share Reinsurance up 31.9% and ACAC Quota Share up 17.3%.

 
 

 

 

Net investment income of $17.2 million decreased 2.9% compared to the fourth quarter of 2010.  Total investments increased $142.6 million to $2.0 billion or 7.6% versus December 31, 2010.  The book yield on the fixed income portfolio (excluding cash) is 3.59% with an average duration of 2.78 years.

 

Net loss and loss adjustment expenses of $296.8 million were up $87.9 million.  The loss ratio(6) increased 4.0 percentage points to 70.8% versus the fourth quarter of 2010.

 

Commission and other acquisition expenses together with general and administrative expenses of $115.4 million increased $20.2 million from the year ago quarter and reflected a total expense ratio of 27.5% compared with 30.5%. General and administrative expenses for the quarter totaled $16.3 million compared with $13.3 million in the fourth quarter of 2010. The general and administrative expense ratio(8) was 3.8% compared to 4.3% in the fourth quarter of 2010.

 

The combined ratio(9) for the fourth quarter totaled 98.3% compared with 97.3% in the comparative quarter in 2010. The combined ratio was adversely impacted in the fourth quarter of 2011 by weather-related losses which impacted the Company's IIS business and a higher than anticipated loss ratio in the ACAC segment.

  

During the fourth quarter of 2011, the Board of Directors declared a dividend of $0.08 per share.

 

Results for the year ended December 31, 2011

 

Net income for the year ended December 31, 2011 was $28.5 million compared to $69.9 million in the year 2010.  Net operating earnings(1) of $69.6 million, or $0.96 per diluted share compared to $72.7 million or $1.02 per diluted share in the year 2010.  Annualized operating return on equity(1) was 9.2% compared to 10.2% in the year 2010.

 

Maiden's net income was impacted by a number of non-operating expenses during 2011. These include charges related to the repurchase of junior subordinated debt with proceeds from the June 2011 Senior Notes offering.   2011 results include $15.1 million of junior subordinated debt repurchase expenses and $20.3 million of accelerated amortization of subordinated debt discount and issuance costs. 2011 financial results were also impacted by $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 2010.

 

Net premiums written rose 40.4% or $495.7 million to $1.7 billion compared to the same period in 2010.  The Diversified Reinsurance segment increased 44.0% as a result of organic growth from current and new business, as well as business resulting from the first full year of premiums following the fourth quarter 2010 acquisition of GMAC International Insurance Services, Ltd. The AmTrust Quota Share Reinsurance segment was up 43.0% due to the growth of AmTrust's principal business and the addition of the European hospital liability business as of the second quarter 2011.  Net premiums written for the ACAC Quota Share rose 24.5% compared to 2010 as this was the first full year of that client relationship following its inception in March 2010.

 

Net premiums earned of $1.6 billion, increased 32.7% or $382.6 million compared to the year 2010.  Earned premiums grew in all business segments with Diversified Reinsurance up 24.5%, AmTrust Quota Share Reinsurance up 25.4% and ACAC Quota Share up 99.1%.

 

Net investment income of $74.9 million was up 4.5% compared to the same period in 2010. This reflects the increase in investable assets of $170.4 million, which more than offset the decrease in book yield (excluding cash) to 3.59% from 4.00% at the end of 2010.

 

Net loss and loss adjustment expenses of $1.0 billion were up $287.9 million.  The loss ratio(6) increased 2.0 percentage points to 66.6% versus the year 2010.

 

Commission and other acquisition expenses together with general and administrative expenses of $492.7 million increased $113.8 million from 2010 and reflected a total expense ratio of 31.5% compared with 32.3%. General and administrative expenses for the year totaled $53.9 million compared with $42.2 million in the year 2010. These results reflected a general and administrative expense ratio(8) of 3.5% in 2011 and 3.5% in 2010.

  

The combined ratio(9) for 2011 was 98.1% versus 96.9% for the year 2010.

 
 

 

 

Total assets increased 12.5% to $3.4 billion compared to $3.0 billion at year-end 2010.  Total cash on hand was $303.0 million, comprised of cash and cash equivalents of $188.1 million, up 95.6% compared to $96.2 million at the end of last year, and restricted cash and cash equivalents of $114.9 million, an increase of 28.0% versus year-end of 2010.  Shareholders' equity was $768.6 million, an increase of 2.5% compared to December 31, 2010. Book value per share was $10.64 at the end of 2011 or 2.3% higher than then end of 2010. Excluding the $35.4 million of costs associated with the June 2011 debt issuance, book value per share on December 31, 2011 would have been $11.13 or 7.0% higher than on December 31, 2010.


Conference Call

 

Maiden CEO Art Raschbaum and CFO John Marshaleck will review fourth quarter and year-end 2011 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: 44449128

Webcast: http://www.maiden.bm/presentations_conferences

 

A replay of the conference call will be available beginning 12:00 p.m. EST on February 23, 2012 through midnight on March 1, 2012. To listen to the replay, please dial toll free: 1.800.585.8367 (U.S. Callers) or toll: 1.404.537.3406 (callers outside the U.S.) and enter the Passcode: 44449128; 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 December 31, 2011, Maiden had $3.4 billion in assets and shareholders' equity of $768.6 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.

 

 

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)
         

    December 31,
2011
  December 31,
2010
ASSETS   (Audited)   (Audited)
Investments:        
Fixed maturities, available for sale, at fair value (Amortized cost 2011: $1,957,106; 2010: $1,819,775)   $ 2,020,661     $ 1,874,433  
Other investments, at fair value (Cost 2011: $1,955; 2010: $5,751)   2,192     5,847  
Total investments   2,022,853     1,880,280  
Cash and cash equivalents   188,082     96,151  
Restricted cash and cash equivalents   114,895     89,756  
Accrued investment income   13,215     14,091  
Reinsurance balances receivable, net   382,670     226,333  
Funds withheld   42,605     152,713  
Prepaid reinsurance premiums   35,381     28,992  
Reinsurance recoverable on unpaid losses   20,289     6,656  
Loan to related party   167,975     167,975  
Deferred commission and other acquisition costs   248,436     203,631  
Goodwill and intangible assets, net   98,755     103,905  
Other assets   19,270     12,079  
Total assets   $ 3,354,426     $ 2,982,562  
LIABILITIES        
Reserve for loss and loss adjustment expenses   $ 1,398,438     $ 1,226,773  
Unearned premiums   832,047     657,556  
Accrued expenses and other liabilities   121,198     56,368  
Securities sold under agreements to repurchase, at contract value       76,225  
Senior notes   107,500      
Junior subordinated debt   126,263     215,191  
Total liabilities   2,585,446     2,232,113  
Commitments and Contingencies        
EQUITY        
Common shares   732     731  
Additional paid-in capital   579,004     577,135  
Accumulated other comprehensive income   64,059     54,334  
Retained earnings   128,648     121,775  
Treasury shares, at cost   (3,801 )   (3,801 )
Total Maiden shareholders’ equity   768,642     750,174  
Noncontrolling interest in subsidiaries   338     275  
Total equity   768,980     750,449  
Total liabilities and equity   $ 3,354,426     $ 2,982,562  
         
Book value per share (4)   10.64     10.40  
         
Common shares outstanding   72,221,428     72,107,100  
 

 

 
 

 

Maiden Holdings, Ltd.
Income Statement
(in thousands (000's), except per share data)
(Unaudited)
               
  For the Three Months Ended
December 31,
2011
  For the Three Months Ended
December 31,
2010
  For the Year
Ended
December 31,
2011
  For the Year
Ended
December 31,
2010
Revenues:              
Gross premiums written $ 428,295     $ 346,074     $ 1,812,597     $ 1,298,055  
               
Net premiums written 408,469     330,055     1,723,521     1,227,831  
Change in unearned premiums 9,364     (17,571 )   (171,093 )   (58,041 )
Net premiums earned 417,833     312,484     1,552,428     1,169,790  
Other insurance revenue 1,276         12,640      
Net investment income 17,183     17,695     74,891     71,651  
Net realized and unrealized investment gains 2,743     4,130     481     6,604  
Total revenues 439,035     334,309     1,640,440     1,248,045  
Expenses:              
Net loss and loss adjustment expenses 296,769     208,858     1,043,054     755,122  
Commission and other acquisition expenses 99,139     81,898     438,812     336,697  
General and administrative expenses 16,285     13,304     53,892     42,180  
Total expenses 412,193     304,060     1,535,758     1,133,999  
               
Income from operations (2) 26,842     30,249     104,682     114,046  
               
Other expenses              
Amortization of intangible assets 1,258     1,452     5,033     5,808  
Foreign exchange losses (gains) 575     200     (323 )   580  
Interest and amortization expenses 7,567     9,118     34,155     36,466  
Accelerated amortization of junior subordinated debt discount and issuance cost         20,313      
Junior subordinated debt repurchase expense         15,050      
Total other expenses 9,400     10,770     74,228     42,854  
               
Income before income taxes 17,442     19,479     30,454     71,192  
Income taxes:              
Current tax (benefit) expense (667 )   60     632     160  
Deferred tax expense 557     289     1,295     1,170  
Income tax (benefit) expense (110 )   349     1,927     1,330  
Net income 17,552     19,130     28,527     69,862  
Add: (Income) loss attributable to noncontrolling interest (8 )   4     (3 )   4  
Net income attributable to Maiden shareholders $ 17,544     $ 19,134     $ 28,524     $ 69,866  
Net operating earnings attributable to Maiden shareholders (1) $ 17,226     $ 17,242     $ 69,637     $ 72,661  
               
Basic earnings per common share attributable to Maiden shareholders $ 0.24     $ 0.27     $ 0.40     $ 0.99  
Diluted earnings per common share attributable to Maiden shareholders $ 0.24     $ 0.27     $ 0.39     $ 0.98  
Basic operating earnings per common share attributable to Maiden shareholders $ 0.24     $ 0.24     $ 0.97     $ 1.03  
Diluted operating earnings per common share attributable to Maiden shareholders $ 0.24     $ 0.24     $ 0.96     $ 1.02  
               
Dividends declared per common share $ 0.08     $ 0.07     $ 0.30     $ 0.27  
               
Weighted average number of basic shares outstanding 72,244,420     72,106,445     72,155,503     70,799,966  
Weighted average number of diluted shares outstanding 72,995,027     72,745,612     72,903,688     71,372,688  
               
Net loss and loss adjustment expense ratio (6) 70.8 %   66.8 %   66.6 %   64.6 %
Commission and other acquisition expense ratio (7) 23.7 %   26.2 %   28.0 %   28.8 %
General and administrative expense ratio (8) 3.8 %   4.3 %   3.5 %   3.5 %
Combined ratio (9) 98.3 %   97.3 %   98.1 %   96.9 %
Annualized return on equity 9.1 %   10.1 %   3.8 %   9.8 %
Annualized return on equity on operating earnings 8.9 %   9.1 %   9.2 %   10.2 %

 

 
 

 

Maiden Holdings, Ltd.
Non - GAAP Financial Measure
(in thousands (000's), except per share data)
(Unaudited)

 

    For the
Three Months
Ended
December 31,
2011
  For the
Three Months
Ended
December 31,
2010
  For the Year
Ended
December 31,
2011
  For the Year
Ended
December 31,
2010
                 
Reconciliation of net income to net operating earnings:                
Net income attributable to Maiden shareholders   $ 17,544     $ 19,134     $ 28,524     $ 69,866  
Add (subtract)                
Net realized and unrealized investment gains   (2,743 )   (4,130 )   (481 )   (6,604 )
Foreign exchange losses (gains)   575     200     (323 )   580  
Amortization of intangible assets   1,258     1,452     5,033     5,808  
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   35     297     226     1,841  
Non-cash deferred tax charge   557     289     1,295     1,170  
Net operating earnings attributable to Maiden shareholders (1)   $ 17,226     $ 17,242     $ 69,637     $ 72,661  
                 
Operating earnings per common share attributable to Maiden shareholders:                
                 
Basic earnings per common share attributable to Maiden shareholders   $ 0.24     $ 0.24     $ 0.97     $ 1.03  
Diluted earnings per common share attributable to Maiden shareholders   $ 0.24     $ 0.24     $ 0.96     $ 1.02  
                 
Reconciliation of net income to income from operations:                
Net income attributable to Maiden shareholders   $ 17,544     $ 19,134     $ 28,524     $ 69,866  
Add (subtract)                
Foreign exchange losses (gains)   575     200     (323 )   580  
Amortization of intangible assets   1,258     1,452     5,033     5,808  
Interest and amortization expenses   7,567     9,118     34,155     36,466  
Accelerated amortization of junior subordinated debt discount and issuance cost           20,313      
Junior subordinated debt repurchase expense           15,050      
Income tax (benefit) expense   (110 )   349     1,927     1,330  
Income (loss) attributable to noncontrolling interest   8     (4 )   3     (4 )
Income from operations (2)   $ 26,842     $ 30,249     $ 104,682     $ 114,046  
                 
    December 31,
2011
  December 31,
2010
       
Investable assets:                
Total investments   $ 2,022,853     $ 1,880,280          
Cash and cash equivalents   188,082     96,151          
Restricted cash and cash equivalents   114,895     89,756          
Funds withheld (3)   29,783     119,000          
Loan to related party   167,975     167,975          
Total investable assets (3)   $ 2,523,588     $ 2,353,162          
                 
    December 31,
2011
  December 31,
2010
       
Capital:                
Senior notes   $ 107,500     $          
Junior subordinated debt   126,263     215,191          
Total Maiden shareholders' equity   768,642     750,174          
Total capital (5)   $ 1,002,405     $ 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 (benefit) expense and income (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 December 31, 2011   Diversified Reinsurance   AmTrust Quota Share Reinsurance   ACAC Quota Share   Total
Net premiums written   $ 192,547     $ 152,618     $ 63,304     $ 408,469  
Net premiums earned   206,062     147,756     64,015     417,833  
Other insurance revenue   1,276             1,276  
Net loss and loss adjustment expenses   (152,376 )   (101,257 )   (43,136 )   (296,769 )
Commissions and other acquisition expenses   (38,530 )   (40,324 )   (20,285 )   (99,139 )
General and administrative expenses   (11,569 )   (481 )   (212 )   (12,262 )
Underwriting income   $ 4,863     $ 5,694     $ 382     10,939  
                 
Reconciliation to net income before income taxes                
Net investment income and realized and unrealized investment gains               19,926  
Amortization of intangible assets               (1,258 )
Foreign exchange losses               (575 )
Interest and amortization expenses               (7,567 )
Accelerated amortization of junior subordinated debt discount and issuance cost                
Junior subordinated debt repurchase expense                
Other general and administrative expenses               (4,023 )
                 
Net income before income taxes               $ 17,442  
                 
Net loss and loss expense ratio (6)   73.5 %   68.5 %   67.4 %   70.8 %
Acquisition cost ratio (7)   18.6 %   27.3 %   31.7 %   23.7 %
General and administrative expense ratio (8)   5.6 %   0.3 %   0.3 %   3.8 %
Combined ratio (9)   97.7 %   96.1 %   99.4 %   98.3 %

 

For the Three Months Ended December 31, 2010   Diversified Reinsurance   AmTrust Quota Share Reinsurance   ACAC Quota Share   Total
Net premiums written   $ 144,974     $ 127,051     $ 58,030     $ 330,055  
Net premiums earned   145,876     112,011     54,597     312,484  
Net loss and loss adjustment expenses   (100,560 )   (71,706 )   (36,592 )   (208,858 )
Commissions and other acquisition expenses   (29,570 )   (36,406 )   (15,922 )   (81,898 )
General and administrative expenses   (7,780 )   (208 )   (119 )   (8,107 )
Underwriting income   $ 7,966     $ 3,691     $ 1,964     13,621  
                 
Reconciliation to net income before income taxes                
Net investment income and realized investment gains               21,825  
Amortization of intangible assets               (1,452 )
Foreign exchange gains               (200 )
Interest and amortization expenses               (9,118 )
Other general and administrative expenses               (5,197 )
                 
Net income before income taxes               $ 19,479  
                 
Net loss and loss expense ratio (6)   68.9 %   64.0 %   67.0 %   66.8 %
Acquisition cost ratio (7)   20.3 %   32.5 %   29.2 %   26.2 %
General and administrative expense ratio (8)   5.3 %   0.2 %   0.2 %   4.3 %
Combined ratio (9)   94.5 %   96.7 %   96.4 %   97.3 %

 
(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 Year Ended December 31, 2011   Diversified Reinsurance   AmTrust Quota Share Reinsurance   ACAC Quota Share   Total
Net premiums written   $ 798,037     $ 669,283     $ 256,201     $ 1,723,521  
Net premiums earned   748,387     558,197     245,844     1,552,428  
Other insurance revenue   12,640             12,640  
Net loss and loss adjustment expenses   (502,375 )   (380,263 )   (160,416 )   (1,043,054 )
Commissions and other acquisition expenses   (200,239 )   (160,522 )   (78,051 )   (438,812 )
General and administrative expenses   (36,374 )   (2,283 )   (1,635 )   (40,292 )
Underwriting income   $ 22,039     $ 15,129     $ 5,742     42,910  
                 
Reconciliation to net income before income taxes                
Net investment income and realized and unrealized investment gains               75,372  
Amortization of intangible assets               (5,033 )
Foreign exchange gains               323  
Interest and amortization expenses               (34,155 )
Accelerated amortization of junior subordinated debt discount and issuance cost               (20,313 )
Junior subordinated debt repurchase expense               (15,050 )
Other general and administrative expenses               (13,600 )
                 
Net income before income taxes               $ 30,454  
                 
Net loss and loss expense ratio (6)   66.0 %   68.1 %   65.3 %   66.6 %
Acquisition cost ratio (7)   26.3 %   28.8 %   31.7 %   28.0 %
General and administrative expense ratio (8)   4.8 %   0.4 %   0.7 %   3.5 %
Combined ratio (9)   97.1 %   97.3 %   97.7 %   98.1 %

 

For the Year Ended December 31, 2010   Diversified
Reinsurance
  AmTrust Quota Share Reinsurance   ACAC Quota Share   Total
Net premiums written   $ 554,049     $ 468,043     $ 205,739     $ 1,227,831  
Net premiums earned   601,254     445,081     123,455     1,169,790  
Net loss and loss adjustment expenses   (394,604 )   (280,890 )   (79,628 )   (755,122 )
Commissions and other acquisition expenses   (152,698 )   (144,655 )   (39,344 )   (336,697 )
General and administrative expenses   (26,123 )   (1,500 )   (243 )   (27,866 )
Underwriting income   $ 27,829     $ 18,036     $ 4,240     50,105  
                 
Reconciliation to net income before income taxes                
Net investment income and realized investment gains               78,255  
Amortization of intangible assets               (5,808 )
Foreign exchange losses               (580 )
Interest and amortization expenses               (36,466 )
Other general and administrative expenses               (14,314 )
                 
Net income before income taxes               $ 71,192  
                 
Net loss and loss expense ratio (6)   65.6 %   63.1 %   64.5 %   64.6 %
Acquisition cost ratio (7)   25.4 %   32.5 %   31.9 %   28.8 %
General and administrative expense ratio (8)   4.4 %   0.3 %   0.2 %   3.5 %
Combined ratio (9)   95.4 %   95.9 %   96.6 %   96.9 %

 

 
(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.
 
 

 

PRESS RELEASE

Maiden Holdings Announces Quarterly Dividend

 

HAMILTON, Bermuda, February 22, 2012 -- 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 April 16, 2012 to shareholders of record as of April 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 December 31, 2011, Maiden had $3.4 billion in assets and shareholders' equity of $766.4 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