Bermuda
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001-34042
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N/A
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(State
or other jurisdiction
of
incorporation)
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(Commission
File
Number)
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(IRS
Employer
Identification
No.)
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48
Par-la-Ville Road, Suite 1141, Hamilton
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HM
11
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(Address
of principal executive offices)
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(Zip
Code)
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o
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Written
communications pursuant to Rule 425 under the Securities Act
(17 CFR 230.425)
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o
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Soliciting
material pursuant to Rule 14a-12 under the Exchange Act
(17 CFR 240.14a-12)
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o
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Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act
(17 CFR 240.14d-2(b))
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o
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Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act
(17 CFR 240.13e-4(c))
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Item
2.02
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RESULTS
OF OPERATIONS AND FINANCIAL
CONDITION
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Item
9.01
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FINANCIAL
STATEMENTS AND EXHIBITS.
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(a)
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Not
applicable.
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(b)
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Not
applicable.
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(c)
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Not
applicable.
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(d)
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Exhibits.
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Exhibit
Number
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Description
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99.1
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Press
release dated November 10, 2009
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99.2
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Press
release dated November 10, 2009
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November
16, 2009
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MAIDEN
HOLDINGS, LTD.
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|||
By:
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/s/
Art Raschbaum
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|||
Name:
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Art
Raschbaum
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|||
Title:
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President
and Chief Executive Officer
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·
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Net income of $15.0
million
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·
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Net operating
earnings(1) of $16.5
million
|
·
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Total revenue of $254.1 million
included net earned premium of $237.4
million
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·
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Net written premium of $221.4
million rose 95.6 percent from third quarter
2008
|
·
|
Net investment income of $16.8
million increased 87 percent from third quarter
2008
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·
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Year-to-date net investment
income of $46.2 million nearly doubled from the same period a year
ago
|
·
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Total investments and cash
equivalents grew to over $1.7 billion at quarter end with total
investments of $1.5 billion
|
·
|
Annualized return on equity of
9.4 percent and operating return on equity of 10.3
percent
|
·
|
Combined ratio of 96.3 percent
compared to 94.4 percent a year
ago
|
·
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Book value per share of $9.45
increased 9.8 percent in the
quarter
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·
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Shareholder’s equity of $664.6
million up 30 percent since year
end
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·
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Announced ACAC agreement
expected to generate over $200 million in annual
revenue
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Maiden
Holdings, Ltd.
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Income
Statement
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(in
thousands (000's), except per share data)
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(Unaudited)
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For
the Three
Months
Ended
September
30, 2009
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For
the Three
Months
Ended
September
30, 2008
|
For
the Nine
Months
Ended
September
30, 2009
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For
the Nine
Months
Ended
September
30, 2008
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|||||||||||||
Revenues:
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||||||||||||||||
Premium
income:
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||||||||||||||||
Net
premiums written
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$ | 221,400 | $ | 113,187 | $ | 796,304 | $ | 386,870 | ||||||||
Change
in unearned premiums
|
15,950 | 408 | (125,021 | ) | (130,631 | ) | ||||||||||
Net
earned premium
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237,350 | 113,595 | 671,283 | 256,239 | ||||||||||||
Net
investment income
|
16,778 | 8,974 | 46,150 | 24,346 | ||||||||||||
Net
realized investment gains (losses)
|
(66 | ) | (42,538 | ) | (462 | ) | (42,375 | ) | ||||||||
Total
revenues
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254,062 | 80,031 | 716,971 | 238,210 | ||||||||||||
Expenses:
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||||||||||||||||
Loss
and loss adjustment expenses
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165,123 | 66,915 | 462,468 | 148,362 | ||||||||||||
Commission
and other acquisition expenses
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55,313 | 38,299 | 159,608 | 85,057 | ||||||||||||
General
and administrative expenses
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8,059 | 1,974 | 22,726 | 5,636 | ||||||||||||
Total
expenses
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228,495 | 107,188 | 644,802 | 239,055 | ||||||||||||
Income
from operations
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25,567 | (27,157 | ) | 72,169 | (845 | ) | ||||||||||
Other
income(expense)
|
||||||||||||||||
Amortization
of intangible assets
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(1,676 | ) | - | (4,915 | ) | - | ||||||||||
Foreign
exchange and other gain (loss)
|
210 | (359 | ) | 2,401 | (364 | ) | ||||||||||
Trust
preferred interest
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(9,114 | ) | - | (25,316 | ) | - | ||||||||||
(10,580 | ) | (359 | ) | (27,830 | ) | (364 | ) | |||||||||
Net
income
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$ | 14,987 | $ | (27,516 | ) | $ | 44,339 | $ | (1,209 | ) | ||||||
Operating
earnings (1)
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$ | 16,519 | $ | 15,381 | $ | 47,315 | $ | 41,530 | ||||||||
Basic
earnings per common share
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$ | 0.21 | $ | (0.46 | ) | $ | 0.64 | $ | (0.02 | ) | ||||||
Diluted
earnings per common share
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$ | 0.21 | $ | (0.46 | ) | $ | 0.63 | $ | (0.02 | ) | ||||||
Basic
operating earnings per common share
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$ | 0.24 | $ | 0.26 | $ | 0.68 | $ | 0.70 | ||||||||
Diluted
operating earnings per common share
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$ | 0.23 | $ | 0.26 | $ | 0.68 | $ | 0.70 | ||||||||
Dividends
declared per common share
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$ | 0.06 | $ | 0.05 | $ | 0.18 | $ | 0.15 | ||||||||
Weighted
average number of basic shares outstanding
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70,287,664 | 59,550,000 | 69,430,521 | 59,550,000 | ||||||||||||
Weighted
average number of diluted shares outstanding
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70,852,895 | 59,550,000 | 69,846,714 | 59,550,000 | ||||||||||||
Combined
ratio
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96.3 | % | 94.4 | % | 96.1 | % | 93.3 | % | ||||||||
Annualized
return on equity
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9.4 | % | (21.3 | %) | 10.1 | % | (0.3 | %) | ||||||||
Annualized
return on equity on operating earnings
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10.3 | % | 12.0 | % | 10.8 | % | 10.9 | % |
Maiden
Holdings, Ltd.
|
Balance
Sheet
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(in
thousands (000's), except per share data)
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(unaudited)
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(Unaudited)
|
||||||||
30-Sep-09
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31-Dec-08 | |||||||
Assets
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||||||||
Fixed
maturities, available-for-sale, at fair value (amortized cost
$1,506,704; $1,163,926)
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$ | 1,541,704 | $ | 1,119,955 | ||||
Other
investments, at fair value (cost $5,707; $5,818)
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5,529 | 5,291 | ||||||
Total
investments
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1,547,233 | 1,125,246 | ||||||
Cash
and cash equivalents
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94,582 | 131,897 | ||||||
Restricted
cash and cash equivalents
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218,595 | 409,277 | ||||||
Accrued
investment income
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11,078 | 10,293 | ||||||
Reinsurance
balances receivable, net
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236,643 | 71,895 | ||||||
Loan
to related party
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167,975 | 167,975 | ||||||
Deferred
commission and other acquisition costs
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171,120 | 104,470 | ||||||
Other
assets
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15,527 | 2,617 | ||||||
Intangible
assets
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52,959 | 55,147 | ||||||
Goodwill
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49,747 | 49,747 | ||||||
Total
Assets
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$ | 2,565,459 | $ | 2,128,564 | ||||
Liabilities
and Shareholders’ Equity
|
||||||||
Liabilities
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||||||||
Loss
and loss adjustment expense reserves
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$ | 967,425 | $ | 895,608 | ||||
Unearned
premiums
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570,875 | 444,479 | ||||||
Accrued
expenses and other liabilities
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42,191 | 46,072 | ||||||
Securities
sold under agreements to repurchase, at contract value
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105,307 | 232,646 | ||||||
Trust
preferred securities
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215,110 | - | ||||||
Total
Liabilities
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1,900,908 | 1,618,805 | ||||||
Shareholders’
Equity:
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||||||||
Common
shares
|
713 | 596 | ||||||
Additional
paid-in capital
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575,891 | 530,519 | ||||||
Treasury
stock
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(3,801 | ) | (3,801 | ) | ||||
Accumulated
other comprehensive loss
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33,117 | (44,499 | ) | |||||
Retained
earnings
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58,631 | 26,944 | ||||||
Total
Shareholders’ Equity
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664,551 | 509,759 | ||||||
Total
Liabilities and Shareholders’ Equity
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$ | 2,565,459 | $ | 2,128,564 | ||||
Book
value per share
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$ | 9.45 | $ | 8.70 | ||||
Common
shares outstanding
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70,287,664 | 58,587,664 |
Maiden
Holdings, Ltd.
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Non
- GAAP Financial Measure
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(in
thousands (000's), except per share data)
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(Unaudited)
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For
the Three
Months
Ended
September
30, 2009
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For
the Three
Months
Ended
September
30, 2008
|
For
the Nine
Months
Ended
September
30, 2009
|
For
the Nine
Months
Ended
September
30, 2008
|
|||||||||||||
Reconciliation
of net income to net operating earnings:
|
||||||||||||||||
Net
income
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$ | 14,987 | $ | (27,516 | ) | $ | 44,339 | $ | (1,209 | ) | ||||||
Add
(subtract)
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||||||||||||||||
Net
realized investment losses
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66 | 42,538 | 462 | 42,375 | ||||||||||||
Foreign
exchange and other (gain) loss
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(210 | ) | 359 | (2,401 | ) | 364 | ||||||||||
Amortization
of intangibles
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1,676 | - | 4,915 | - | ||||||||||||
Operating
earnings (1)
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$ | 16,519 | $ | 15,381 | $ | 47,315 | $ | 41,530 | ||||||||
Operating
earnings per common share:
|
||||||||||||||||
Basic earnings
per share
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$ | 0.24 | $ | 0.26 | $ | 0.68 | $ | 0.70 | ||||||||
Diluted
earnings per share
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$ | 0.23 | $ | 0.26 | $ | 0.68 | $ | 0.70 |
(1)
Net operating earnings is a non-GAAP financial measure defined by the
Company as net income excluding realized investment gains and losses,
foreign exchange and other gains and losses and amortization of intangible
assets 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.
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