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): August 4, 2010
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 August
4, 2010, Maiden Holdings, Ltd. issued a press release announcing its results of
operations for the second quarter ended June 30, 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 August
4, 2010, Maiden Holdings, Ltd. also issued a press release announcing a
quarterly cash dividend of $0.065 per share of common stock payable on October
15, 2010 to shareholders of record as of October 1, 2010. 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 August 4, 2010.
99.2 Press
Release of Maiden Holdings, Ltd., dated August 4, 2010.
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: August
4, 2010
|
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 August 4, 2010.
99.2 Press
Release of Maiden Holdings, Ltd., dated August 4, 2010.
August
4, 2010
|
Maiden
Holdings, Ltd. Reports Second Quarter Net Income of$18.6 Million and
Operating Earnings of $21.2 Million
|
|
Book
Value of $10.31 per Share Up 7.2% Since Year-End
2009
|
Second
Quarter 2010 Financial Highlights
|
·
|
Net
income of $18.6 million up 14.7% from second quarter 2009; EPS of
$0.26
|
|
-
|
Results
include $1.0 million, or $0.01 per share, of non-recurring acquisition
costs
|
|
·
|
Record
net operating earnings(1)
of $21.2 million compared with $14.0 million in second quarter of 2009;
Operating EPS(1)
of $0.30
|
|
·
|
Income
from operations totaled $29.9 million up 21.4% from second quarter
2009
|
|
·
|
Net
earned premium of $283.8 million increased 26.8% from second quarter of
2009
|
|
·
|
Net
investment income of $18.9 million up 24.9% from second quarter
2009
|
|
·
|
Annualized
return on equity of 10.4% and operating return on equity(1)
of 11.9%
|
|
·
|
Combined
ratio of 96.3% compared with 96.4% in the second quarter of
2009
|
|
·
|
GMAC
International Insurance Services, Ltd. transaction expected to close by
end of third quarter
|
HAMILTON,
Bermuda - Maiden Holdings, Ltd. (Nasdaq: MHLD) today reported second
quarter 2010 net income of $18.6 million, up 15% from $16.3 million in the
second quarter of 2009. Earnings per diluted share of $0.26 increased 13% from
$0.23 in the second quarter of 2009. Operating earnings (1) for
the quarter totaled $21.2 million, or $0.30 per diluted share, compared with
$14.0 million, or $0.20 per diluted share in the second quarter of
2009.
For the
first half of 2010, net income totaled $32.2 million, up 9.7% from the first
half of 2009. Earnings per diluted share of $0.46 increased 9.5% from
$0.42 in the first half of 2009. Operating earnings (1) for
the first half of 2010 of $37.4 million, or $0.53 per diluted share, compared
with $30.8 million, or $0.44 per diluted share in the first half of
2009.
"We
continued to strengthen the overall earnings power of Maiden Holdings in the
second quarter, and delivered both increased investment income and solid
underwriting performance.” said Art Raschbaum, President and CEO of Maiden
Holdings, Ltd. “We grew operating earnings by over fifty percent compared with
the second quarter of last year, reflecting an increase of over twenty-five
percent in both earned premium and investment income. At the same time, we
maintained our commitment to strong underwriting and pricing discipline as
evidenced by this quarter’s combined ratio of 96.3 percent. Importantly,
consistent with Maiden’s strategy of producing stable underwriting results by
focusing on lower volatility business and de-emphasizing catastrophic risk, we
have avoided losses from the large industry events such as the Chilean
earthquake and the Deepwater Horizon oil spill.”
(more)
Page 2 of
4
Raschbaum
continued, “These positive results reflect continued underwriting discipline in
a competitive market and the benefit of strong relationships across our platform
in both the U.S and Bermuda, including strategic relationships such as our
recent partnership with ACAC. We continue to leverage our competitive strengths
which include our highly efficient operating platform, our specialist approach
to serving the needs of regional and specialty insurers, and the exceptional
reinsurance security provided by our unique collateral trust.”
Raschbaum
added, “We remain on track to achieve our business objectives as we look toward
the second half of the year and beyond and continue to focus on prudently
growing the investment portfolio and investment income. We look forward to the
enhanced revenue streams, greater diversity and longer-term opportunities we’ll
gain from the recently announced GMAC International Insurance Services, Inc.
transaction. I’m very proud of the continued diligence of the entire Maiden team
and the great progress we have made over the first half of the year toward
continuing to strengthen and enhance our diversified relationship model and
build enduring value for the long-term."
Shareholders'
equity of $724.8 million grew 7.1% from year end 2009 and book value per share
(1)
increased 7.2% to $10.31 from $9.62 at year end 2009.
The
company expects the proposed GMAC International Insurance Services, Inc.
transaction to close by the end of the third quarter.
Second
Quarter 2010 Results:
Net
written premium totaled $313.1 million compared with $238.4 million in the
second quarter of 2009. Net earned premium of $283.8 million increased 26.8%
from $223.8 million for the same period last year.
Net
investment income of $18.9 million grew 24.9% from $15.1 million in the second
quarter of 2009.
Loss and
loss adjustment expenses of $175.4 million rose $24.3 million from $151.1
million in the second quarter of 2009. Results reflected a loss ratio of 61.8%
compared with 67.5% for the same period a year ago.
Commission
and other acquisition expenses together with general and administrative expenses
of $97.9 million increased $33.1 million from the year ago quarter and reflected
a total expense ratio of 34.5% compared with 28.9%. General and administrative
expenses for the quarter totaled $9.5 million compared with $7.1 million in the
second quarter of 2009.
These
results reflected a general and administrative expense ratio of 3.3% compared to
3.1% in the second quarter of 2009.
The
combined ratio for the second quarter totaled 96.3% compared with 96.4% in the
second quarter of 2009.
(more)
Page 3 of
4
Income
from operations(1)
of $29.9 million increased $5.3 million, or 21.4%, from $24.6 million in the
second quarter of 2009.
Total
assets of $2.8 billion increased 7.6% from $2.6 billion from 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 $67.5
million from year end 2009. Shareholders' equity totaled $724.8 million up 7.1%
from $676.5 million at year end 2009.
During
the second quarter of 2010, the Board of Directors declared a dividend of $0.065
per share.
2010
Year-to-Date Results:
Net
written premium of $624.3 million increased 8.6% from $574.9 million during the
first half of 2009. Net earned premium of $547.7 million grew 113.8 million, or
26.2%, from $433.9 million for the same period last year.
Net
investment income of $36.5 million increased 24.1% from $29.4 million in the
first six months of 2009.
Loss and
loss adjustment expenses of $345.6 million rose $48.3 million from $297.3
million in the first half of 2009. Results reflected a loss ratio of 63.1%
compared with 68.5% for the same period a year ago.
Commission
and other acquisition expenses together with general and administrative expenses
of $183.9 million increased $64.9 million from the first half of last year and
reflected a total expense ratio of 33.6% compared with 27.4%. General and
administrative expenses for the period totaled $18.0 million compared with $14.7
million. These results reflected a general and administrative expense ratio of
3.3% compared to 3.4% in the first half of 2009.
The
combined ratio)
for the second quarter totaled 96.7% compared with 95.9% in the first half of
2009.
Income
from operations of $55.5 million increased $8.9 million, or 19.1%, from $46.6
million in the first six months of 2009.
(1)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.
(more)
Page 4 of
4
Conference
Call
Maiden
CEO Art Raschbaum and CFO John Marshaleck will review these results tomorrow
morning via teleconference and live audio webcast 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), August 5, 2010 through midnight on August 12, 2010. 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: 88058907; 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. 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
March 31, 2010, the company had $2.7 billion in assets and total capital of $925
million including shareholders' equity of $710 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, 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)
|
6/30/2010
|
12/31/2009
|
|||||||
|
(Unaudited)
|
(Audited)
|
|||||||
|
Assets
|
||||||||
|
Fixed
maturities, available-for-sale, at fair value (amortized cost
$1,576,293; $1,623,382)
|
$ | 1,633,906 | $ | 1,661,692 | ||||
|
Other
investments, at fair value (cost $5,801;
$5,684)
|
5,677 | 5,549 | ||||||
|
Total
investments
|
1,639,583 | 1,667,241 | ||||||
|
Cash
and cash equivalents
|
179,063 | 107,396 | ||||||
|
Restricted
cash and cash equivalents
|
168,396 | 144,944 | ||||||
|
Accrued
investment income
|
13,643 | 11,405 | ||||||
|
Reinsurance
balances receivable, net
|
271,199 | 208,495 | ||||||
|
Prepaid
reinsurance
|
31,762 | 28,752 | ||||||
|
Losses
recoverable on unpaid losses
|
12,144 | 11,984 | ||||||
|
Loan
to related party
|
167,975 | 167,975 | ||||||
|
Deferred
commission and other acquisition costs
|
196,912 | 172,983 | ||||||
|
Other
assets
|
54,855 | 11,818 | ||||||
|
Intangible
assets, net
|
48,380 | 51,284 | ||||||
|
Goodwill
|
52,617 | 52,617 | ||||||
|
Total
Assets
|
$ | 2,836,529 | $ | 2,636,894 | ||||
|
Liabilities
and Shareholders’ Equity
|
||||||||
|
Liabilities
|
||||||||
|
Reserve
for loss and loss adjustment expenses
|
$ | 1,077,084 | $ | 1,006,320 | ||||
|
Unearned
premiums
|
664,685 | 583,478 | ||||||
|
Accrued
expenses and other liabilities
|
83,843 | 60,044 | ||||||
|
Securities
sold under agreements to repurchase, at contract
value
|
70,972 | 95,401 | ||||||
|
Junior
subordinated debt
|
215,156 | 215,125 | ||||||
|
Total
Liabilities
|
2,111,740 | 1,960,368 | ||||||
|
Shareholders’
Equity:
|
||||||||
|
Common
shares
|
713 | 713 | ||||||
|
Additional
paid-in capital
|
576,539 | 576,086 | ||||||
|
Accumulated
other comprehensive income
|
57,489 | 32,747 | ||||||
|
Retained
earnings
|
93,849 | 70,781 | ||||||
|
Treasury
stock, at cost
|
(3,801 | ) | (3,801 | ) | ||||
|
Total
Shareholders’ Equity
|
724,789 | 676,526 | ||||||
|
Total
Liabilities and Shareholders’ Equity
|
$ | 2,836,529 | $ | 2,636,894 | ||||
|
Book
value per share
|
$ | 10.31 | $ | 9.62 | ||||
|
Common
shares outstanding
|
70,292,101 | 70,291,289 | ||||||
Maiden Holdings,
Ltd.
Income
Statement
(in thousands (000's), except per share
data)
(Unaudited)
|
For
the Three
Months
Ended
June
30, 2010
|
For
the Three
Months
Ended
June
30, 2009
|
For
the Six
Months
Ended
June
30, 2010
|
For
the Six
Months
Ended
June
30, 2009
|
|||||||||||||
|
Revenues:
|
||||||||||||||||
|
Gross
premiums written
|
$ | 334,784 | $ | 238,356 | $ | 662,166 | $ | 574,905 | ||||||||
|
Net
premiums written
|
$ | 313,050 | $ | 238,356 | $ | 624,341 | $ | 574,905 | ||||||||
|
Increase
in unearned premiums
|
(29,266 | ) | (14,515 | ) | (76,628 | ) | (140,972 | ) | ||||||||
|
Net
earned premium
|
283,784 | 223,841 | 547,713 | 433,933 | ||||||||||||
|
Net
investment income
|
18,875 | 15,113 | 36,456 | 29,372 | ||||||||||||
|
Net
realized and unrealized investment gains
(losses)
|
535 | 1,534 | 847 | (396 | ) | |||||||||||
|
Total
revenues
|
303,194 | 240,488 | 585,016 | 462,909 | ||||||||||||
|
Expenses:
|
||||||||||||||||
|
Net
loss and loss adjustment expenses
|
175,354 | 151,057 | 345,639 | 297,345 | ||||||||||||
|
Commission
and other acquisition expenses
|
88,447 | 57,664 | 165,843 | 104,295 | ||||||||||||
|
General
and administrative expenses
|
9,484 | 7,133 | 18,036 | 14,667 | ||||||||||||
|
Total
expenses
|
273,285 | 215,854 | 529,518 | 416,307 | ||||||||||||
|
Income
from operations (2)
|
29,909 | 24,634 | 55,498 | 46,602 | ||||||||||||
|
Other
expense
|
||||||||||||||||
|
Amortization
of intangible assets
|
(1,452 | ) | (1,675 | ) | (2,904 | ) | (3,239 | ) | ||||||||
|
Foreign
exchange and other losses (gains)
|
(414 | ) | 2,404 | (1,567 | ) | 2,191 | ||||||||||
|
Subordinated
debt interest expense
|
(9,116 | ) | (9,112 | ) | (18,231 | ) | (16,202 | ) | ||||||||
| (10,982 | ) | (8,383 | ) | (22,702 | ) | (17,250 | ) | |||||||||
|
Income
before income taxes
|
18,927 | 16,251 | 32,796 | 29,352 | ||||||||||||
|
Income
taxes:
|
||||||||||||||||
|
Current
tax expense
|
- | - | - | - | ||||||||||||
|
Deferred
tax expense
|
290 | - | 590 | - | ||||||||||||
|
Income
tax expense
|
290 | - | 590 | - | ||||||||||||
|
Net
income
|
$ | 18,637 | $ | 16,251 | $ | 32,206 | $ | 29,352 | ||||||||
|
Operating
earnings (1)
|
$ | 21,239 | $ | 13,988 | $ | 37,401 | $ | 30,796 | ||||||||
|
Basic
earnings per common share
|
$ | 0.27 | $ | 0.23 | $ | 0.46 | $ | 0.43 | ||||||||
|
Diluted
earnings per common share
|
$ | 0.26 | $ | 0.23 | $ | 0.46 | $ | 0.42 | ||||||||
|
Basic
operating earnings per common share
|
$ | 0.30 | $ | 0.20 | $ | 0.53 | $ | 0.45 | ||||||||
|
Diluted
operating earnings per common share
|
$ | 0.30 | $ | 0.20 | $ | 0.53 | $ | 0.44 | ||||||||
|
Dividends
declared per common share
|
$ | 0.065 | $ | 0.060 | $ | 0.13 | $ | 0.12 | ||||||||
|
Weighted
average number of basic shares
outstanding
|
70,291,894 | 70,287,664 | 70,291,650 | 68,994,846 | ||||||||||||
|
Weighted
average number of diluted shares outstanding
|
70,770,849 | 70,667,099 | 70,773,764 | 69,310,704 | ||||||||||||
|
Net
Loss and loss adjustment expense ratio
|
61.8 | % | 67.5 | % | 63.1 | % | 68.5 | % | ||||||||
|
Commission
and other acquisition expense ratio
|
31.2 | % | 25.8 | % | 30.3 | % | 24.0 | % | ||||||||
|
General and
administrative expense ratio
|
3.3 | % | 3.1 | % | 3.3 | % | 3.4 | % | ||||||||
|
Combined
ratio
|
96.3 | % | 96.4 | % | 96.7 | % | 95.9 | % | ||||||||
|
Annualized
return on equity
|
10.4 | % | 11.2 | % | 9.3 | % | 10.7 | % | ||||||||
|
Annualized
return on equity on operating earnings
|
11.9 | % | 9.6 | % | 10.8 | % | 11.1 | % | ||||||||
Maiden Holdings,
Ltd.
Supplemental Financial Data - Segment
Information
(in thousands
(000's))
(Unaudited)
|
For
the three months ended June 30, 2010
|
Diversified
Reinsurance
|
AmTrust
Quota
Share
|
ACAC
Quota
Share
|
Total
|
||||||||||||
|
Net
premiums written
|
$ | 136,709 | $ | 109,123 | $ | 67,218 | $ | 313,050 | ||||||||
|
Net
premiums earned
|
161,779 | 101,664 | 20,341 | 283,784 | ||||||||||||
|
Net
losses and loss expenses
|
(99,218 | ) | (63,423 | ) | (12,713 | ) | (175,354 | ) | ||||||||
|
Commissions
and other acquisition costs
|
(48,386 | ) | (33,090 | ) | (6,971 | ) | (88,447 | ) | ||||||||
|
General
and administrative expenses
|
(5,726 | ) | (598 | ) | — | (6,324 | ) | |||||||||
|
Underwriting
income
|
$ | 8,449 | $ | 4,553 | $ | 657 | $ | 13,659 | ||||||||
|
Reconciliation
to net income
|
||||||||||||||||
|
Net
investment income and realized and unrealized investment gains
(losses)
|
19,410 | |||||||||||||||
|
Amortization
of intangible assets
|
(1,452 | ) | ||||||||||||||
|
Foreign
exchange loss
|
(414 | ) | ||||||||||||||
|
Subordinated
debt interest expense
|
(9,116 | ) | ||||||||||||||
|
Other
operating expenses
|
(3,160 | ) | ||||||||||||||
|
Net
Income before income taxes
|
$ | 18,927 | ||||||||||||||
|
Net
loss and loss expense ratio*
|
61.3 | % | 62.4 | % | 62.5 | % | 61.8 | % | ||||||||
|
Acquisition
cost ratio**
|
29.9 | % | 32.5 | % | 34.3 | % | 31.2 | % | ||||||||
|
General
and administrative expense
ratio***
|
3.5 | % | 0.6 | % | — | % | 3.3 | % | ||||||||
|
Combined
ratio****
|
94.7 | % | 95.5 | % | 96.8 | % | 96.3 | % | ||||||||
|
For
the three months ended June 30, 2009
|
Diversified
Reinsurance
|
AmTrust
Quota
Share
|
ACAC
Quota
Share
|
Total
|
||||||||||||
|
Net
premiums written
|
$ | 148,553 | $ | 89,803 | $ | — | $ | 238,356 | ||||||||
|
Net
premiums earned
|
136,214 | 87,627 | — | 223,841 | ||||||||||||
|
Net
losses and loss expenses
|
(94,570 | ) | (56,487 | ) | — | (151,057 | ) | |||||||||
|
Commissions
and other acquisition costs
|
(28,950 | ) | (28,714 | ) | — | (57,664 | ) | |||||||||
|
General
and administrative expenses
|
(4,088 | ) | (687 | ) | — | (4,775 | ) | |||||||||
|
Underwriting
income
|
$ | 8,606 | $ | 1,739 | $ | — | $ | 10,345 | ||||||||
|
Reconciliation
to net income
|
||||||||||||||||
|
Net
investment income and realized
gains
|
16,647 | |||||||||||||||
|
Amortization
of intangible assets
|
(1,675 | ) | ||||||||||||||
|
Foreign
exchange gain
|
2,404 | |||||||||||||||
|
Subordinated
debt interest expense
|
(9,112 | ) | ||||||||||||||
|
Other
operating expenses
|
(2,358 | ) | ||||||||||||||
|
Net
Income before income taxes
|
$ | 16,251 | ||||||||||||||
|
Net
loss and loss expense ratio*
|
69.4 | % | 64.4 | % | — | % | 67.5 | % | ||||||||
|
Acquisition
cost ratio**
|
21.3 | % | 32.8 | % | — | % | 25.7 | % | ||||||||
|
General
and administrative expense
ratio***
|
3.0 | % | 0.8 | % | — | % | 3.2 | % | ||||||||
|
Combined
ratio****
|
93.7 | % | 98.0 | % | — | % | 96.4 | % | ||||||||
|
*
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 six months ended June 30, 2010
|
Diversified
Reinsurance
|
AmTrust
Quota
Share
|
ACAC
Quota
Share
|
Total
|
||||||||||||
|
Net
premiums written
|
$ | 304,623 | $ | 230,679 | $ | 89,039 | $ | 624,341 | ||||||||
|
Net
premiums earned
|
312,959 | 212,323 | 22,431 | 547,713 | ||||||||||||
|
Net
losses and loss expenses
|
(198,635 | ) | (132,985 | ) | (14,019 | ) | (345,639 | ) | ||||||||
|
Commissions
and other acquisition costs
|
(88,900 | ) | (69,238 | ) | (7,705 | ) | (165,843 | ) | ||||||||
|
General
and administrative expenses
|
(11,598 | ) | (1,072 | ) | — | (12,670 | ) | |||||||||
|
Underwriting
income
|
$ | 13,826 | $ | 9,028 | $ | 707 | $ | 23,561 | ||||||||
|
Reconciliation
to net income
|
||||||||||||||||
|
Net
investment income and realized and unrealized investment gains
(losses)
|
37,303 | |||||||||||||||
|
Amortization
of intangible assets
|
(2,904 | ) | ||||||||||||||
|
Foreign
exchange loss
|
(1,567 | ) | ||||||||||||||
|
Subordinated
debt interest expense
|
(18,231 | ) | ||||||||||||||
|
Other
operating expenses
|
(5,366 | ) | ||||||||||||||
|
Net
Income before income taxes
|
$ | 32,796 | ||||||||||||||
|
Net
loss and loss expense ratio*
|
63.5 | % | 62.6 | % | 62.5 | % | 63.1 | % | ||||||||
|
Acquisition
cost ratio**
|
28.4 | % | 32.6 | % | 34.3 | % | 30.3 | % | ||||||||
|
General
and administrative expense ratio***
|
3.7 | % | 0.5 | % | — | % | 3.3 | % | ||||||||
|
Combined
ratio****
|
95.6 | % | 95.7 | % | 96.8 | % | 96.7 | % | ||||||||
|
For
the six months ended June 30, 2009
|
Diversified
Reinsurance
|
AmTrust
Quota
Share
|
ACAC
Quota
Share
|
Total
|
||||||||||||
|
Net
premiums written
|
$ | 399,731 | $ | 175,174 | $ | — | $ | 574,905 | ||||||||
|
Net
premiums earned
|
253,884 | 180,049 | — | 433,933 | ||||||||||||
|
Net
losses and loss expenses
|
(183,585 | ) | (113,760 | ) | — | (297,345 | ) | |||||||||
|
Commissions
and other acquisition costs
|
(45,172 | ) | (59,123 | ) | — | (104,295 | ) | |||||||||
|
General
and administrative expenses
|
(9,815 | ) | (1,061 | ) | — | (10,876 | ) | |||||||||
|
Underwriting
income
|
$ | 15,312 | $ | 6,105 | $ | — | $ | 21,417 | ||||||||
|
Reconciliation
to net income
|
||||||||||||||||
|
Net
investment income and realized gain (loss)
|
28,976 | |||||||||||||||
|
Amortization
of intangible assets
|
(3,239 | ) | ||||||||||||||
|
Foreign
exchange gain
|
2,191 | |||||||||||||||
|
Subordinated
debt interest expense
|
(16,202 | ) | ||||||||||||||
|
Other
operating expenses
|
(3,791 | ) | ||||||||||||||
|
Net
Income before income taxes
|
$ | 29,352 | ||||||||||||||
|
Net
loss and loss expense ratio*
|
72.3 | % | 63.2 | % | — | % | 68.5 | % | ||||||||
|
Acquisition
cost ratio**
|
17.8 | % | 32.8 | % | — | % | 24.0 | % | ||||||||
|
General
and administrative expense ratio***
|
3.9 | % | 0.6 | % | — | % | 3.4 | % | ||||||||
|
Combined
ratio****
|
94.0 | % | 96.6 | % | — | % | 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.
|
Maiden Holdings,
Ltd.
Non - GAAP Financial
Measure
(in thousands (000's), except per share
data)
(Unaudited)
|
For
the Three
Months
Ended
June
30, 2010
|
For
the Three
Months
Ended
June
30, 2009
|
For
the Six
Months
Ended
June
30, 2010
|
For
the Six
Months
Ended
June
30, 2009
|
|||||||||||||
|
Reconciliation
of net income to net operating earnings:
|
||||||||||||||||
|
Net
income
|
$ | 18,637 | $ | 16,251 | $ | 32,206 | $ | 29,352 | ||||||||
|
Add
(subtract)
|
||||||||||||||||
|
Net
realized investment (gains) losses
|
(535 | ) | (1,534 | ) | (847 | ) | 396 | |||||||||
|
Foreign
exchange and other losses (gains)
|
414 | (2,404 | ) | 1,567 | (2,191 | ) | ||||||||||
|
Amortization
of intangible assets
|
1,452 | 1,675 | 2,904 | 3,239 | ||||||||||||
|
Non-recurring
general and administrative expenses relating to acquisition of GMAC
International Insurance
|
981 | - | 981 | - | ||||||||||||
|
Non-cash
deferred tax charge
|
290 | - | 590 | - | ||||||||||||
|
Operating
earnings (1)
|
$ | 21,239 | $ | 13,988 | $ | 37,401 | $ | 30,796 | ||||||||
|
Operating
earnings per common share:
|
||||||||||||||||
|
Basic earnings
per share
|
$ | 0.30 | $ | 0.20 | $ | 0.53 | $ | 0.45 | ||||||||
|
Diluted
earnings per share
|
$ | 0.30 | $ | 0.20 | $ | 0.53 | $ | 0.44 | ||||||||
|
Reconciliation
of net income to income from operations:
|
||||||||||||||||
|
Net
income
|
$ | 18,637 | $ | 16,251 | $ | 32,206 | $ | 29,352 | ||||||||
|
Add
(subtract)
|
||||||||||||||||
|
Foreign
exchange and other losses (gains)
|
414 | (2,404 | ) | 1,567 | (2,191 | ) | ||||||||||
|
Amortization
of intangibles
|
1,452 | 1,675 | 2,904 | 3,239 | ||||||||||||
|
Subordinated
debt interest expense
|
9,116 | 9,112 | 18,231 | 16,202 | ||||||||||||
|
Non-cash
deferred tax charge
|
290 | - | 590 | - | ||||||||||||
|
Income
from operations (2)
|
$ | 29,909 | $ | 24,634 | $ | 55,498 | $ | 46,602 | ||||||||
|
(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, 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 excluding foreign exchange and other gains and
losses, amortization of intangible assets, subordinated debt interest
expense and non-cash deferred tax charge 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. Announces Quarterly Dividend
HAMILTON,
Bermuda - Maiden Holdings, Ltd. (Nasdaq: MHLD) today announced that
the Board of Directors approved a quarterly cash dividend of $0.065 per share of
common stock. The dividend is payable on October 15, 2010 to shareholders of
record as of October 1, 2010.
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
March 31, 2010, the company had $2.7 billion in assets and total capital of $925
million including shareholders' equity of $710 million.
Maiden
Holdings, Ltd.
Ellen
Taylor
856.359.2573
irelations@maiden.bm
MHLD-G