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) July
30, 2008
Maiden
Holdings, Ltd.
(Exact
name of registrant as specified in its charter)
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Bermuda
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001-34042
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N/A
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(State
or other jurisdiction
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(Commission
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IRS
Employer
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of
incorporation)
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File
Number)
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Identification
No.)
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48
Par-La-Ville Road, Suite 1141, Hamilton
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HM11
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(Address
of principal executive offices)
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(Zip
Code)
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| Registrant’s telephone number, including area code (441) 292-7090 | ||
(Former
name or former address, if changed since last report.)
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 (General
Instruction A.2. below):
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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
240.133-4 (c))
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Item
2.02 RESULTS
OF OPERATIONS AND FINANCIAL CONDITION
On
July
30, 2008, Maiden Holdings, Ltd. issued a press release announcing its results
of
operations for the second quarter ended June 30, 2008 and the scheduling of
a
conference call on July 31, 2008 with respect thereto. A copy of the press
release is attached as Exhibit 99.1 to this Form 8-K and is furnished as Exhibit
99.1 to this report.
Item
9.01 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 July 30, 2008.
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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.
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Maiden
Holdings, Ltd.
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(Registrant)
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Date
July
30, 2008
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/s/
Ben Turin
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Ben
Turin
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Secretary
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| press release |
 |
For
more information, please contact:
Maiden
Holdings, Ltd.
Devora
M.
Goldenberg
441.292.7090
info@maiden.bm
For
immediate release
July
30, 2008
Maiden
Holdings, Ltd. Reports Second Quarter Net Income of $13.8
million
Maiden
Holdings, Ltd. (NASDAQ: MHLD),
today
reported net income of $13.8 million and net premium written of $171.3 million
for the second quarter ended June 30, 2008. Earnings per share for the second
quarter were $0.23.
Second
Quarter and Six Months 2008 Highlights:
| · |
Net
premium written for second quarter 2008 was $171.3
million
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| · |
Net
premium written for six months ended June 30, 2008 was $273.7
million
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| · |
Net
income for the second quarter was $13.8
million
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| · |
Net
income for six months ended June 30, 2008 was $26.3
million
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| · |
Return
on equity for the second quarter was 10.4% on an annualized
basis
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| · |
Return
on equity for six months ended June 30, 2008 on an annualized basis
was
9.8%
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| · |
Quarterly
earnings per basic share for second quarter 2008 was
$0.23
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| · |
Earnings
per basic share for six months ended June 30, 2008 was
$0.44
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| · |
The
combined ratio for the second quarter was
92.3%
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| · |
The
combined ratio for six months ended June 30, 2008 was
92.4%
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Second
Quarter 2008 Results:
Revenue:
Net
written premium for the second quarter was $171.3 million and net earned premium
was $77.3 million. Net investment income was $7.8 million for the quarter ended
June 30, 2008. For the six months ended June 30, 2008, net written premium
was
$273.7 million and net earned premium was $142.6 million. Net investment income
for the six months was $15.4 million.
Expenses:
The
Company’s loss ratio for the second quarter 2008 was 56.4%. The Company’s
expenses for the second quarter 2008 were $27.7 million resulting in an expense
ratio of 35.9% for the quarter. The Company’s loss ratio for six months ended
June 30, 2008 was 57.1% and the expense ratio was 35.4%.
Other
Matters:
Shareholders’
Equity as of June 30, 2008 increased to $536.7 million from $530.6 million
as of
March 31, 2008. During the second quarter the Company announced a dividend
of
$0.05.
Conference
Call:
On
July
31, 2008 at 3:00 p.m. Atlantic Time (2:00 p.m. ET), the Company will hold a
conference call that can be accessed as follows:
Toll
Dial-in (International Callers): 719.325.4845
Toll-free
Dial-in: 877.340.7913
Webcast:
http://www.maiden.bm
In
order
to participate in the conference call, you must register at http://www.maiden.bm.
A
replay
of the conference call will be available starting at 5:00 p.m. Atlantic Time
on
Thursday, July 31, 2008 through Wednesday, August 6, 2008 by dialing toll
719.457.0820 or toll-free 888.203.1112. The passcode for the replay is 4188502.
Replay of the webcast will also be available at http://www.maiden.bm.
About
Maiden Holdings, Ltd.
Maiden
Holdings, Ltd. is a Bermuda holding company formed in May, 2007 to offer
customized reinsurance products and services, through Maiden Insurance Company,
Ltd., its wholly owned Bermuda reinsurance subsidiary, to small and mid-size
insurance companies in the United States and Europe.
Forward
Looking Statement
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, developments relating to existing
agreements, heightened competition, changes in pricing environments, and changes
in asset valuations. The Company undertakes no obligation to publicly update
any
forward-looking statements.
#
#
#
Maiden
Holdings, Ltd.
Income
Statement
(in
thousands (000's), except per share data)
(Unaudited)
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For
the Three Months Ended June 30, 2008
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Period
from May 31 to June 30, 2007
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For
the Six Months Ended June 30, 2008
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Period
from May 31 to June 30, 2007
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||||||||||
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Revenues:
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|||||||||||||
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Premium
income:
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|||||||||||||
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Net
premiums written
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$
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171,251
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$
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-
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$
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273,683
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$
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-
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Change
in unearned premiums
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(93,913
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)
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-
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(131,040
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)
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-
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Net
earned premium
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77,338
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-
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142,643
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-
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|||||||||
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Net
investment income
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7,763
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59
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15,372
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59
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|||||||||
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Net
realized investment gains
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39
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-
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163
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-
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|||||||||
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Total
revenues
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85,140
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59
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158,178
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59
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Expenses:
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Loss
and loss adjustment expenses
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43,610
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-
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81,446
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-
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|||||||||
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Commission
and other acquisition expenses
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25,498
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-
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46,758
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-
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Salaries
and benefits
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615
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-
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1,147
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-
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Other
operating expenses
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1,625
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136
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2,519
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136
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|||||||||
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Total
expenses
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71,348
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136
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131,870
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136
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Net
income
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$
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13,792
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$
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(77
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)
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26,308
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$
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(77
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)
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Basic
and diluted earnings per common share
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$
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0.23
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$
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(0.02
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)
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0.44
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$
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(0.02
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)
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Dividends
declared per common share
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$
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0.05
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$
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-
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0.10
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$
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-
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||||||
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Weighted
average number of basic and diluted shares outstanding
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59,550,000
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4,026
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59,550,000
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4,026
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|||||||||
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Combined
ratio
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92.3
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%
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N/A
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92.4
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%
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N/A
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|||||||
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Annualized
return on equity
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10.4
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%
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-3.80
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%
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9.8
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%
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-3.80
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%
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|||||
Maiden
Holdings, Ltd.
Balance
Sheet
(in
thousands (000's), except per share data)
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(Unaudited)
30-Jun-08
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31-Dec-07
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||||||
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Assets
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|||||||
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Fixed
maturities, available-for-sale, at fair value (amortized cost $752,990
;
$488,765)
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$
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721,496
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$
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474,789
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|||
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Other
investments, at fair value (cost $15,199; $15,176)
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12,134
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15,656
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|||||
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Total
investments
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733,630
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490,445
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|||||
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Cash
and cash equivalents
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74,170
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35,729
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Accrued
investment income
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4,827
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3,204
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|||||
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Reinsurance
balances receivable, net
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101,933
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27,990
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|||||
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Loan
to related party
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167,975
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113,542
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|||||
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Prepaid
expenses and other assets
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62
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454
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|||||
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Deferred
commission and other acquisition costs
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91,011
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44,215
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Furniture
and equipment, net
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70
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29
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|||||
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|||||
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Total
Assets
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$
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1,173,678
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$
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715,608
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|||
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Liabilities
and Shareholders’ Equity
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|||||||
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Liabilities
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|||||||
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Loss
and loss adjustment expense reserves
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$
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83,340
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$
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38,508
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|||
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Unearned
premiums
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268,206
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137,166
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|||||
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Accrued
expenses and other liabilities
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4,175
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2,589
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|||||
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Due
to broker
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26,660
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-
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|||||
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Securities
sold under agreements to repurchase, at contract value
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254,557
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-
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|||||
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|||||
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Total
Liabilities
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636,938
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178,263
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|||||
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Shareholders’
Equity:
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|||||||
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Common
shares
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596
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596
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|||||
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Additional
paid-in capital
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530,038
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529,647
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|||||
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Accumulated
other comprehensive loss
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(34,845
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)
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(13,496
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)
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|||
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Retained
earnings
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40,951
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20,598
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|||||
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Total
Shareholders’ Equity
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536,740
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537,345
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|||||
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Total
Liabilities and Shareholders’ Equity
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$
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1,173,677
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$
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715,608
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|||
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Book
value per share
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$
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9.01
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$
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9.02
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|||
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Common
shares outstanding
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59,550,000
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59,550,000
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|||||