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): March 1, 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:
 
   
o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
   
         
   
o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
   
         
   
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
   
         
   
o 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 March 1, 2011, Maiden Holdings, Ltd. issued a press release announcing its results of operations for the fourth quarter and fiscal year ended December 31, 2010.  A copy of the press release is hereby furnished to the Commission and incorporated by reference herein as Exhibit 99.1.
 
Item 8.01 
Other Events.
 
On March 1, 2011, Maiden Holdings, Ltd. also issued a press release announcing a quarterly cash dividend of $0.07 per share of common stock payable on April 15, 2011 to shareholders of record as of April 1, 2011.  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 March 1, 2011.
 
  99.2 
Press Release of Maiden Holdings, Ltd., dated March 1, 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: March 1, 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 March 1, 2011.
 
  99.2 
Press Release of Maiden Holdings, Ltd., dated March 1, 2011.
 
 
 

 
Unassociated Document
 
March 1, 2011

Maiden Holdings, Ltd. Reports Fourth Quarter Net Income of $19.1  Million and Operating Earnings(1) of $17.2 Million
 
Shareholders’ Equity of $750.2 Million; Up 10.9% for the Year
 
Year End Book Value of $10.40 per Share

Financial Highlights
 
·  
Net income of $19.1 million for the quarter and $69.9 million for 2010, each up 14.4% from the same period last year
 
·  
Fourth quarter EPS of $ $0.27 and full year EPS of $0.98
 
·  
Net operating earnings(1) of $17.2 million for the quarter compared with $19.0 million in fourth quarter of 2009
 
·  
Fourth quarter operating EPS(1) of $0.24 and $1.02 for the full year
 
·  
Income from operations(2) totaled $30.2 million, up 5.0% from fourth quarter 2009
 
·  
Net written premium of $330.1 million in the quarter, up $96.0 million from fourth quarter 2009
 
·  
Net written premium of $1.2 billion for the full year, up 19.2% from 2009
 
·  
Net earned premium of $312.5 million in the quarter increased 25.7% from fourth quarter of 2009
 
·  
Net earned premium totaled $1.2 billion in 2010, up 27.2% from 2009
 
·  
Net investment income of $17.7 million in the quarter, up 5.3% from fourth quarter 2009
 
·  
Annualized return on equity of 10.1% and operating return on equity(1) of 9.1% in the quarter
 
·  
Full year return on equity of 9.8% and operating return on equity(1) of 10.2%
 
·  
Combined ratio of 97.3% in the quarter and 96.9% for the full year
 
·  
Total assets of $3.0 billion increased 13.1% from year-end 2009
 
·  
Investable assets of $2.2 billion included total investments of $1.9 billion, which were up 12.8% from year-end 2009 total investments of $1.7 billion
 
·  
Shareholders’ equity of $750.2 million increased 10.9% from year-end 2009
 
·  
Closed GMAC International Insurance Services, Ltd. transaction in November; integration on track
 
 
 

 
 
HAMILTON, Bermuda - Maiden Holdings, Ltd. (Nasdaq:  MHLD) today reported fourth quarter 2010 net income of $19.1 million, up 14.4% from $16.7 million in the fourth quarter of 2009. Earnings per diluted share of $0.27 increased 12.5% from $0.24 in the fourth quarter of 2009.
 
Operating earnings(1) for the quarter totaled $17.2 million, or $0.24 per diluted share, compared with $19.0 million, or $0.27 per diluted share in the fourth quarter of 2009.
 
2010 net income totaled $69.9 million, up 14.4% from 2009. Earnings per diluted share of $0.98 increased 12.6% from $0.87 in 2009. Operating earnings(1) in 2010 totaled $72.7 million, or $1.02 per diluted share, compared with $66.3 million, or $0.95 per diluted share in 2009.
 
"The Maiden team once again delivered solid results for our shareholders even in the face of the continued challenging underwriting and investment landscape,” said Art Raschbaum, President and CEO of Maiden Holdings, Ltd. “During the year, we continued to benefit from the stability of our strong, non-catastrophe oriented client value proposition, disciplined underwriting philosophy, and growth tied to our long-term strategic relationships.”
 
Raschbaum added, “Our November acquisition of the GMAC International Insurance Services platform provides us with a strong entry point to the international market and we are confident in our ability to leverage this unique platform to drive additional growth in 2011 and beyond. These factors, in addition to our continued commitment to maintaining a strong, efficient balance sheet and disciplined approach to investing, solidly position Maiden to continue to deliver long-term value for our shareholders.”
 
Shareholders' equity of $750.2 million rose 10.9% from year end 2009 and book value per share increased 8.1% to $10.40 from $9.62 at year end 2009.
 
Fourth Quarter 2010 Results:
 
Net written premium totaled $330.1 million compared with $234.1 million in the fourth quarter of 2009. Net earned premium of $312.5 million increased 25.7% from $248.6 million for the same period last year.
 
Net investment income of $17.7 million grew 5.3% from $16.8 million in the fourth quarter of 2009.
 
Loss and loss adjustment expenses of $208.9 million rose $62.7 million from $146.1 million in the fourth quarter of 2009. Results reflected a loss ratio of 66.8% compared with 58.8% for the same period a year ago.
 
Commission and other acquisition expenses together with general and administrative expenses of $95.2 million increased $4.0 million from the year ago quarter and reflected a total expense ratio of 30.5% compared with 36.7%. General and administrative expenses for the quarter totaled $13.3 million compared with $9.4 million in the fourth quarter of 2009.
 
These results reflected a general and administrative expense ratio of 4.3% compared to 3.8% in the fourth quarter of 2009.

 
 

 
 
The combined ratio for the fourth quarter totaled 97.3% compared with 95.5% in the fourth quarter of 2009.
 
Income from operations(2) of $30.2 million increased $1.4 million, or 5.0%, from $28.8 million in the fourth quarter of 2009.
 
Total assets of $3.0 billion increased from $2.6 billion at year end 2009. Total investable assets of $2.2 billion, which include total investments, cash, restricted cash, cash equivalents and a loan to a related party, increased $146.6 million from year end 2009. Total investments of $1.9 billion increased $213.0 million, or 12.8% from year end 2009. Shareholders' equity of $750.2 million rose 10.9% from $676.5 million at year end 2009.
 
During the fourth quarter of 2010, the Board of Directors declared a dividend of $0.07 per share.
 
2010 Results:
 
Net written premium of $1.2 billion increased 19.2% from $1.0 billion during 2009. Net earned premium of $1.2 billion grew $249.9 million, or 27.2%, from $919.9 million last year.
 
Net investment income of $71.7 million increased 13.8% from $63.0 million in 2009.
 
Loss and loss adjustment expenses of $755.1 million rose $146.5 million from $608.6 million in 2009. Results reflected a loss ratio of 64.6% compared with 66.2% a year ago.
 
Commission and other acquisition expenses together with general and administrative expenses of $378.9 million increased $105.3 million from last year and reflected a total expense ratio of 32.3% compared with 29.7%. General and administrative expenses for the period totaled $42.2 million compared with $32.1 million in 2009. These results reflected a general and administrative expense ratio of 3.5% which remained stable with 2009.
 
The combined ratio totaled 96.9% in 2010, compared with 95.9% in 2009.
 
Income from operations(2) of $114.0 million for the year increased $13.1 million, or 13.0%, from $101.0 million in 2009.
 
(1)(2)Please see the Non-GAAP Financial Measures table at the end of this release for additional information on these non-GAAP financial measures and reconciliation of these measures to GAAP measures.

 
 

 
 
Conference Call
 
CEO Art Raschbaum and CFO John Marshaleck will review these results via teleconference and live audio webcast on Wednesday, March 2, beginning at 10:00 a.m. AT (9:00 a.m. ET).
 
To participate, please access one of the following no later than 9:55 a.m. AT (8:55 a.m. ET):
 
1.877.734.5373 for U.S. callers
 
1.973.200.3059 for callers outside the U.S.
 
Webcast: http://www.maiden.bm/presentations_conferences
 
A replay of the conference call will be available beginning at 1:00 p.m. AT (12:00 p.m. ET), March 2, 2011 through midnight on March 9, 2011. To listen to the replay, please dial toll free: 1.800.642.1687 (U.S. callers) or toll 1.706.645.9291 (callers outside the U.S.) and enter the Passcode: 41251935; or access http://www.maiden.bm/presentations_conferences.
 

Maiden Holdings, Ltd.
 
Ellen Taylor
 
856.359.2573
 
irelations@maiden.bm
 
About Maiden Holdings, Ltd.
 
Maiden Holdings, Ltd. is a Bermuda-based holding company formed in 2007. We are focused on providing non-catastrophic, customized reinsurance products and services, to small and mid-size insurance companies in the United States and Europe. Our operating subsidiaries are rated A- rated (excellent) by A.M. Best with a stable outlook. As of September 30, 2010, the Company had $2.8 billion in assets and shareholders' equity of $758 million.
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, adverse state and federal legislation, regulations and regulatory investigations into industry practices, challenges inherent in international operations, 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, 2009 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.
 
MHLD-G
 
 
 

 
 
Maiden Holdings, Ltd.
 
Balance Sheet
 
(in thousands (000's), except per share data)
 
   
             
   
12/31/2010 (Audited)
   
12/31/2009 (Audited)
 
Assets
           
Fixed maturities, available-for-sale, at fair value (amortized cost $1,819,775;  $1,623,382)
  $ 1,874,433     $ 1,661,692  
Other investments, at fair value (cost $5,751; $5,684)
    5,847       5,549  
Total investments
    1,880,280       1,667,241  
Cash and cash equivalents
    96,151       107,396  
Restricted cash and cash equivalents
    89,756       144,944  
Accrued investment income
    14,091       11,405  
Reinsurance balances receivable, net
    226,333       211,338  
Funds withheld
    152,713       -  
Prepaid reinsurance premiums
    28,992       28,752  
Reinsurance recoverable on unpaid losses
    6,656       8,340  
Loan to related party
    167,975       167,975  
Deferred commission and other acquisition costs
    203,631       172,983  
Goodwill and intangible assets, net
    103,905       103,901  
Other assets
    12,079       11,818  
Total Assets
  $ 2,982,562     $ 2,636,093  
Liabilities and Shareholders’ Equity
               
Liabilities
               
Reserve for loss and loss adjustment expenses
  $ 1,226,773     $ 1,002,676  
Unearned premiums
    657,556       583,478  
Accrued expenses and other liabilities
    56,368       62,887  
Securities sold under agreements to repurchase, at contract value
    76,225       95,401  
Junior subordinated debt
    215,191       215,125  
Total Liabilities
    2,232,113       1,959,567  
                 
Equity:
               
Common shares
    731       713  
Additional paid-in capital
    577,135       576,086  
Accumulated other comprehensive income
    54,334       32,747  
Retained earnings
    121,775       70,781  
Treasury stock, at cost
    (3,801 )     (3,801 )
Total Maiden Shareholders’ Equity
    750,174       676,526  
Noncontrolling interest in subsidiary
    275       -  
Total Equity
    750,449       676,526  
Total Liabilities and Equity
  $ 2,982,562     $ 2,636,093  
                 
                 
Book value per share
  $ 10.40     $ 9.62  
                 
Common shares outstanding
    72,107,100       70,291,289  
                 
 
 
 

 
 
Maiden Holdings, Ltd.
 
Income Statement
 
(in thousands (000's), except per share data)
 
(Unaudited)
 
                         
                         
   
For the Three Months Ended December 31, 2010
   
For the Three Months Ended December 31, 2009
   
For the Year Ended December 31, 2010
   
For the Year Ended December 31, 2009
 
Revenues:
                       
Gross premiums written
  $ 346,074     $ 247,333     $ 1,298,055     $ 1,048,676  
                                 
Net premiums written
  $ 330,055     $ 234,070     $ 1,227,831     $ 1,030,374  
Change in unearned premiums
    (17,571 )     14,566       (58,041 )     (110,455 )
Net premiums earned
    312,484       248,636       1,169,790       919,919  
Net investment income
    17,695       16,807       71,651       62,957  
Net realized and unrealized investment gains (losses)
    4,130       732       6,604       270  
Total revenues
    334,309       266,175       1,248,045       983,146  
Expenses:
                               
Net loss and loss adjustment expenses
    208,858       146,145       755,122       608,613  
Commission and other acquisition expenses
    81,898       81,821       336,697       241,429  
General and administrative expenses
    13,304       9,409       42,180       32,135  
Total expenses
    304,060       237,375       1,133,999       882,177  
                                 
Income from operations (2)
    30,249       28,800       114,046       100,969  
                                 
Other expense
                               
Amortization of intangible assets
    (1,452 )     (1,675 )     (5,808 )     (6,590 )
Foreign exchange and other (losses) gains
    (200 )     53       (580 )     2,454  
Subordinated debt interest expense
    (9,118 )     (9,115 )     (36,466 )     (34,431 )
      (10,770 )     (10,737 )     (42,854 )     (38,567 )
                                 
Income before income taxes
    19,479       18,063       71,192       62,402  
Income taxes:
                               
Current tax expense
    60       -       160       -  
Deferred tax expense
    289       1,344       1,170       1,344  
Income tax expense
    349       1,344       1,330       1,344  
                                 
Net income
  $ 19,130     $ 16,719     $ 69,862     $ 61,058  
Add: Loss attributable to noncontrolling interest
    4       -       4       -  
Net income attributable to Maiden
    19,134       16,719       69,866       61,058  
Operating earnings (1)
  $ 17,242     $ 18,953     $ 72,661     $ 66,268  
                                 
Basic earnings per common share attributable to Maiden shareholders
  $ 0.27     $ 0.24     $ 0.99     $ 0.88  
Diluted earnings per common share attributable to Maiden shareholders
  $ 0.27     $ 0.24     $ 0.98     $ 0.87  
Basic operating earnings per common share attributable to Maiden shareholders
  $ 0.24     $ 0.27     $ 1.03     $ 0.95  
Diluted operating earnings per common share attributable to Maiden shareholders
  $ 0.24     $ 0.27     $ 1.02     $ 0.95  
                                 
Dividends declared per common share
  $ 0.07     $ 0.06     $ 0.265     $ 0.25  
                                 
Weighted average number of basic  shares outstanding
    72,106,445       70,288,602       70,799,966       69,646,804  
Weighted average number of diluted shares outstanding
    72,745,612       70,791,229       71,372,688       70,060,197  
                                 
Net Loss and loss adjustment expense ratio
    66.8 %     58.8 %     64.6 %     66.2 %
Commission and other acquisition expense ratio
    26.2 %     32.9 %     28.8 %     26.2 %
General  and administrative expense ratio
    4.3 %     3.8 %     3.5 %     3.5 %
Combined ratio
    97.3 %     95.5 %     96.9 %     95.9 %
Annualized return on equity
    10.1 %     9.9 %     9.8 %     10.3 %
Annualized return on equity on operating earnings
    9.1 %     11.2 %     10.2 %     11.2 %
                                 
 
 
 

 
 
Maiden Holdings, Ltd.
 
Non - GAAP Financial Measure
 
(in thousands (000's), except per share data)
 
(Unaudited)
 
                         
                         
   
For the Three Months Ended December 31, 2010
   
For the Three Months Ended December 31, 2009
   
For the Year Ended December 31, 2010
   
For the Year Ended December 31, 2009
 
 
Reconciliation of net income to net operating earnings:
                       
Net income attributable to Maiden
  $ 19,134     $ 16,719     $ 69,866     $ 61,058  
Add (subtract)
                               
Net realized and unrealized investment (gains) losses
    (4,130 )     (732 )     (6,604 )     (270 )
Foreign exchange and other losses (gains)
    200       (53 )     580       (2,454 )
Amortization of intangible assets
    1,452       1,675       5,808       6,590  
Non-recurring general and administrative expenses relating to acquisition of GMAC International Insurance
    297       -       1,841       -  
Non-cash deferred tax charge
    289       1,344       1,170       1,344  
Operating earnings attributable to Maiden (1)
  $ 17,242     $ 18,953     $ 72,661     $ 66,268  
                                 
Operating earnings per common share attributable to Maiden shareholders:
                               
                                 
Basic earnings per common share attributable to Maiden shareholders
  $ 0.24     $ 0.27     $ 1.03     $ 0.95  
Diluted earnings per common share attributable to Maiden shareholders
  $ 0.24     $ 0.27     $ 1.02     $ 0.95  
                                 
Reconciliation of net income to income from operations:
                               
Net income attributable to Maiden
  $ 19,134     $ 16,719     $ 69,866     $ 61,058  
Add (subtract)
                               
Foreign exchange and other losses (gains)
    200       (53 )     580       (2,454 )
Amortization of intangible assets
    1,452       1,675       5,808       6,590  
Subordinated debt interest expense
    9,118       9,115       36,466       34,431  
Income tax expense
    349       1,344       1,330       1,344  
Loss attributable to noncontrolling interest
    (4 )     -       (4 )     -  
Income from operations attributable to Maiden (2)
  $ 30,249     $ 28,800     $ 114,046     $ 100,969  
                                 
                                 
(1) Net operating earnings is a non-GAAP financial measure defined by the Company as net income attributable to Maiden excluding realized investment gains and losses, foreign exchange and other gains and losses, amortization of intangible assets, 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 excluding foreign exchange and other gains and losses, amortization of intangible assets, subordinated debt interest 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.
 
                                 
 
 
 

 
 
Maiden Holdings, Ltd.
Supplemental Financial Data - Segment Information
(in thousands (000's))
(Unaudited)
                                 
                                 
For the Three Months Ended December 31, 2010
 
Diversified Reinsurance
   
AmTrust Quota Share
   
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 losses and loss expenses
   
     (100,560)
     
                (71,706)
     
     (36,592)
     
     (208,858)
 
Commissions and other acquisition costs
   
       (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
                               
Net investment income and realized and unrealized investment gains (losses)
                           
        21,825
 
Amortization of intangible assets
                           
         (1,452)
 
Foreign exchange losses
                           
            (200)
 
Subordinated debt interest expense
                           
         (9,118)
 
Other general and administrative expenses
                           
         (5,197)
 
                           
  
   
Net Income before income taxes
                         
$
        19,479
 
                                 
Net loss and loss expense ratio*
   
68.9%
     
64.0%
     
67.0%
     
66.8%
 
Acquisition cost ratio**
   
20.3%
     
32.5%
     
29.2%
     
26.2%
 
General and administrative expense ratio***
   
5.3%
     
0.2%
     
0.2%
     
4.3%
 
Combined ratio****
   
94.5%
     
96.7%
     
96.4%
     
97.3%
 
                                 
                                 
For the Three Months Ended December 31, 2009
 
Diversified Reinsurance
   
AmTrust Quota Share
   
ACAC Quota Share
   
Total
 
Net premiums written
 
$
       129,053
   
$
                105,017
   
 $
              -
   
 $
      234,070
 
Net premiums earned
   
166,237
     
82,399
     
              -
     
      248,636
 
Net losses and loss expenses
   
       (99,755)
     
                (46,390)
     
              -
     
     (146,145)
 
Commissions and other acquisition costs
   
       (54,959)
     
                (26,862)
     
              -
     
       (81,821)
 
General and administrative expenses
   
         (5,612)
     
                     (642)
     
              -
     
         (6,254)
 
Underwriting income
 
$
           5,911
   
$
                    8,505
   
 $
              -
   
 $
        14,416
 
                                 
Reconciliation to net income
                               
Net investment income and realized investment gains (losses)
                           
        17,539
 
Amortization of intangible assets
                           
         (1,675)
 
Foreign exchange and other gains
                           
               53
 
Subordinated debt interest expense
                           
         (9,115)
 
Other general and administrative expenses
                           
         (3,155)
 
                           
   
   
Net Income before income taxes
                         
 $
        18,063
 
                                 
Net loss and loss expense ratio*
   
60.0%
     
56.3%
     
              -
     
58.8%
 
Acquisition cost ratio**
   
33.1%
     
32.6%
     
              -
     
32.9%
 
General and administrative expense ratio***
   
3.3%
     
0.8%
     
              -
     
3.8%
 
Combined ratio****
   
96.4%
     
89.7%
     
              -
     
95.5%
 
                                 
                                 
*  Calculated by dividing net losses and loss expenses by net earned premium.
                         
** Calculated by dividing commission and other acquisition expenses by net earned premium
                 
***  Calculated by dividing general and administrative expenses by net earned premium.
                 
**** 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, 2010
 
Diversified Reinsurance
   
AmTrust Quota Share
   
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 losses and loss expenses
   
           (394,604)
     
      (280,890)
     
      (79,628)
     
       (755,122)
 
Commissions and other acquisition costs
   
           (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
                               
Net investment income and realized and unrealized investment gains (losses)
                           
78,255
 
Amortization of intangible assets
                           
           (5,808)
 
Foreign exchange losses
                           
              (580)
 
Subordinated debt interest expense
                           
         (36,466)
 
Other general and administrative expenses
                           
         (14,314)
 
                           
  
   
Net Income before income taxes
                         
$
           71,192
 
                                 
Net loss and loss expense ratio*
   
65.6%
     
63.1%
     
64.5%
     
64.6%
 
Acquisition cost ratio**
   
25.4%
     
32.5%
     
31.9%
     
28.8%
 
General and administrative expense ratio***
   
4.4%
     
0.3%
     
0.2%
     
3.5%
 
Combined ratio****
   
95.4%
     
95.9%
     
96.6%
     
96.9%
 
                                 
                                 
For the Year Ended December 31, 2009
 
Diversified Reinsurance
   
AmTrust Quota Share
   
ACAC Quota Share
   
Total
 
Net premiums written
 
$
             658,016
   
 $
        372,358
   
 $
               -
   
 $
      1,030,374
 
Net premiums earned
   
             567,998
     
        351,921
     
               -
     
         919,919
 
Net losses and loss expenses
   
           (393,760)
     
      (214,853)
     
               -
     
       (608,613)
 
Commissions and other acquisition costs
   
           (126,193)
     
      (115,236)
     
               -
     
       (241,429)
 
General and administrative expenses
   
             (19,211)
     
          (2,515)
     
               -
     
         (21,726)
 
Underwriting income
 
$
               28,834
   
 $
          19,317
   
 $
               -
   
 $
           48,151
 
                                 
Reconciliation to net income
                               
Net investment income and realized investment gains (losses)
                           
           63,227
 
Amortization of intangible assets
                           
           (6,590)
 
Foreign exchange and other gains
                           
             2,454
 
Subordinated debt interest expense
                           
         (34,431)
 
Other general and administrative expenses
                           
         (10,409)
 
                           
   
   
Net Income before income taxes
                         
 $
           62,402
 
                                 
Net loss and loss expense ratio*
   
69.3%
     
61.1%
     
               -
     
66.2%
 
Acquisition cost ratio**
   
22.2%
     
32.7%
     
               -
     
26.2%
 
General and administrative expense ratio***
   
3.4%
     
0.7%
     
               -
     
3.5%
 
Combined ratio****
   
94.9%
     
94.5%
     
               -
     
95.9%
 
                                 
                                 
*  Calculated by dividing net losses and loss expenses by net earned premium.
                         
** Calculated by dividing commission and other acquisition expenses by net earned premium
                 
***  Calculated by dividing general and administrative expenses by net earned premium.
                 
**** Calculated by adding together net loss and loss expense ratio, acquisition cost ratio and general and administrative expense ratio.
 
                                 
 
 
 

 
Unassociated Document
 
March 1, 2011

Maiden Holdings, Ltd. Announces Quarterly Dividend

HAMILTON, Bermuda, Maiden Holdings, Ltd. (Nasdaq:MHLD) today announced that its Board of Directors approved a quarterly cash dividend of $0.07 per share of common stock. The dividend will be payable on April 15, 2011 to shareholders of record as of April 1, 2011.

Maiden Holdings, Ltd.
Ellen Taylor
856.359.2573
irelations@maiden.bm

About Maiden Holdings, Ltd.
 
Maiden Holdings, Ltd. is a Bermuda-based holding company formed in 2007. Through our subsidiaries which are each A- rated (excellent) by A.M. Best, we are 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, 2010, the Company had $2.8 billion in assets and shareholders' equity of $758 million. MHLD-G