MHLD Maiden Holdings Ltd

Highlights for the quarter ended June 30, 2016

Maiden Holdings, Ltd. (NASDAQ:MHLD) (“Maiden” or “the Company”) today reported second quarter 2016 net income attributable to Maiden common shareholders of $30.9 million or $0.39 per diluted common share compared to net income attributable to Maiden common shareholders of $20.5 million or $0.27 per diluted common share in the second quarter of 2015.   Net operating earnings(1) were $28.4 million, or $0.37 per diluted common share compared with net operating earnings of $28.4 million, or $0.37 per diluted common share in the second quarter of 2015.

Commenting on the Company's results, Art Raschbaum, Chief Executive Officer of Maiden, said: “The second quarter reflects a continued focus on disciplined growth, improving our cost of capital and delivering value to our regional and specialty insurer clients.  Notwithstanding a competitive operating environment and continued pressure on investment yields, our overall results reflect continued underwriting profitability and strong growth in book value while achieving an annualized return on common equity of 12.3% and an annualized operating return on common equity of 11.3%. This marks the 12th consecutive quarter of double digit operating returns.  While revenue growth has moderated for our AmTrust Reinsurance segment versus a strong prior year quarter impacted by acquisitions, the Diversified Reinsurance segment growth continues to benefit primarily from the expansion of existing client relationships in the U.S. and our developing European capital solutions business.  Going forward, earnings should benefit from investment of our large quarter-end cash balance and continued implementation of key strategic initiatives in the U.S. and Europe.”  

Results for the quarter ended June 30, 2016Maiden reported second quarter 2016 net income attributable to common shareholders of $30.9 million or $0.39 per diluted common share compared with $20.5 million or $0.27 per diluted common share in the second quarter of 2015.  Net operating earnings(1) were $28.4 million, or $0.37 per diluted common share in the second quarter of 2016 compared with an equivalent result in the second quarter of 2015.

In the second quarter of 2016, gross premiums written increased 2.1% to $688.3 million from $674.2 million in the second quarter of 2015.  The Diversified Reinsurance segment’s gross premiums written totaled $164.8 million, an increase of 8.7% versus the second quarter of 2015. In the AmTrust Reinsurance segment, gross premiums written were $523.5 million compared to $522.5 million in the second quarter of 2015. This segment was impacted by the commutation announced in the fourth quarter of 2015 and slower growth following the completion of AmTrust’s integration of Tower Group.    

Net premiums written totaled $650.4 million in the second quarter of 2016, an increase of 3.3% compared to the second quarter of 2015. 

Net premiums earned of $637.6 million increased 4.6% compared to the second quarter of 2015.  In the Diversified Reinsurance segment, net premiums earned increased 3.2% to $190.8 million compared to the second quarter of 2015.  The AmTrust Reinsurance segment net earned premiums were up 5.2% to $446.8 million compared to the second quarter of 2015. 

Net loss and loss adjustment expenses of $427.0 million were up 2.9% compared to the second quarter of 2015.  

The loss ratio(8) of 66.8% was lower than the 67.8% reported in the second quarter of 2015.

Commission and other acquisition expenses, increased 5.7% to $185.7 million in the second quarter of 2016, compared to the same quarter a year ago.  The expense ratio(11) increased to 31.8% for the first quarter of 2016 compared with 31.4% in the same quarter last year, reflecting changes in business mix.  General and administrative expenses for the second quarter of 2016 totaled $17.3 million, a 6.1% increase compared with $16.3 million in the second quarter of 2015. The general and administrative expense ratio(10) was 2.7% in the second quarter of 2016, which is the same as the second quarter of 2015. 

The combined ratio(12) for the second quarter of 2016 totaled 98.6% compared with 99.2% in the second quarter of 2015.  The Diversified Reinsurance segment combined ratio was 103.4% in the second quarter of 2016, down from 103.6% in the second quarter of 2015, as commercial auto adverse development continued in the quarter. The AmTrust Reinsurance segment reported a combined ratio of 94.9% in the second quarter of 2016 compared to 95.2% in the second quarter of 2015.      

Net investment income of $35.3 million in the second quarter of 2016 increased slightly compared to the second quarter of 2015, which included $5.9 million of additional income from two called securities.  As of June 30, 2016, the average yield on the fixed income portfolio (excluding cash) is 3.29% with an average duration of 4.55 years.  Cash and cash equivalents were $505.8 million at June 30, 2016 or $173.3 million higher than at year-end 2015 as the Company received higher levels of cash from investment activities and held more cash during the quarter in light of the rate volatility during the second quarter of 2016.

Total assets increased 10.0% to $6.3 billion at June 30, 2016 compared to $5.7 billion at year-end 2015.   Shareholders' equity was $1.5 billion, up 13.5% compared to December 31, 2015.  Book value per common share was $14.18 at June 30, 2016 or 20.5% higher than at December 31, 2015.    During the second quarter of 2016, the Board of Directors declared dividends of $0.14 per common share, $0.515625 per Series A preference share, $0.90625 per Series B preference share and $0.445313 per Series C preference share.

Results for the six months ended June 30, 2016Net income attributable to Maiden common shareholders was $58.1 million or $0.75 per diluted common share in the first six months of 2016 compared to net income attributable to Maiden common shareholders of $52.9 million or $0.69 per diluted common share in the first half of 2015.  Net operating earnings(1) for the first six months of 2016 were $56.8 million, or $0.73 per diluted common share compared with $55.0 million, or $0.71 per diluted common share in the first half of 2015. 

In the first half of 2016, gross premiums written totaled $1.6 billion, an increase of 2.9% compared to the first six months of 2015.  In the first half of 2016, net premiums written totaled $1.4 billion, an increase of 1.2% compared to the first six months of 2015.  Net premiums written in the Diversified Reinsurance segment totaled $447.4 million, an increase of 1.9% versus the first half of 2015.  In the AmTrust Reinsurance segment, net premiums written increased by 0.8% to $995.8 million compared to the first half of 2015. 

Net premiums earned of $1.3 billion increased 5.6% compared to the first six months of 2015.  Net premiums earned decreased 3.8% in the Diversified Reinsurance segment to $363.0 million compared to the first half of 2015. The AmTrust Reinsurance segment net premiums earned were up 10.0% to $890.6 million compared to the first half 2015. 

Net loss and loss adjustment expenses of $ 830.6 million were up 4.8% compared to the first six months of 2015.  The loss ratio(8) of 65.9% was lower than the 66.3% in the first half of 2015.

Commission and other acquisition expenses, increased $26.8 million to $380.8 million in the first half of 2016 versus the comparable period a year ago, while the expense ratio(11) rose to 32.8% for the first six months of 2016 compared with 32.4% in the same period last year.  General and administrative expenses for the first half of 2016 totaled $32.8 million compared with $32.5 million in the first six months of 2015. The general and administrative expense ratio(10) decreased to 2.6% in the first half of 2016 versus 2.7% in the same period during 2015. 

The combined ratio(12) for the first half of 2016 was 98.7% and the same as the first six months of 2015.  The Diversified Reinsurance segment had a combined ratio of 103.2% in the first half of 2016 compared to 102.3% in the first six months of 2015.  The AmTrust Reinsurance segment reported a combined ratio of 95.1% in the first half of 2016 compared to 94.9% in the comparable period in 2015. 

Net investment income of $71.6 million in the first half of 2016 increased 12.9% compared to the first half of 2015. 

(1)(4)(7) Please see the Non-GAAP Financial Measures table for additional information on these non-GAAP financial measures and reconciliation of these measures to GAAP measures.

(8)(10)(11)(12) Loss ratio, general and administrative expense ratio, expense ratio and combined ratio are operating metrics. Please see the additional information on these measures under Segment information tables.

Conference CallMaiden’s Chief Executive Officer, Art Raschbaum and Chief Financial Officer, Karen Schmitt will review these results tomorrow morning via teleconference and live audio webcast beginning at 8:30 a.m. ET.

To participate in the conference call, please access one of the following at least five minutes prior to the start time: 

U.S. Callers: 1.877.734.5373

Outside U.S. Callers: 1.973.200.3059

Passcode: 52657857

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

A replay of the conference call will be available beginning at 11:30 a.m. ET on August 5, 2016 through midnight on August 12, 2016. To listen to the replay, please dial toll free: 1.855.859.2056 (U.S. Callers) or toll: 1.404.537.3406 (callers outside the U.S.) and enter the Passcode: 52657857; or access http://www.maiden.bm/news_events  

About Maiden Holdings, Ltd.Maiden Holdings, Ltd. is a Bermuda-based holding company formed in 2007.  Through its subsidiaries, which are each A- rated (excellent) by A.M. Best, the Company is focused on providing non-catastrophic, customized reinsurance products and services to small and mid-size insurance companies in the United States and Europe. As of June 30, 2016, Maiden had $6.3 billion in assets and shareholders' equity of $1.5 billion.

Forward Looking StatementsThis release contains "forward-looking statements" which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The forward-looking statements are based on the Company's current expectations and beliefs concerning future developments and their potential effects on the Company. There can be no assurance that actual developments will be those anticipated by the Company. Actual results may differ materially from those projected as a result of significant risks and uncertainties, including non-receipt of the expected payments, changes in interest rates, effect of the performance of financial markets on investment income and fair values of investments, developments of claims and the effect on loss reserves, accuracy in projecting loss reserves, the impact of competition and pricing environments, changes in the demand for the Company's products, the effect of general economic conditions and unusual frequency of storm activity, adverse state and federal legislation, regulations and regulatory investigations into industry practices, developments relating to existing agreements, heightened competition, changes in pricing environments, and changes in asset valuations. Additional information about these risks and uncertainties, as well as others that may cause actual results to differ materially from those projected is contained in Item 1A. Risk Factors in the Company's Annual Report on Form 10-K for the year ended December 31, 2015 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.

Maiden Holdings, Ltd.
Balance Sheet
(in thousands (000's), except per share data)
		June 30, 2016				December 31, 2015
			(Unaudited)				(Audited)
	Assets
	Fixed maturities, available-for-sale, at fair value (Amortized cost 2016: $3,374,192; 2015: $3,562,864)	$	3,452,605			$	3,508,088
	Fixed maturities, held-to-maturity, at amortized cost (Fair value 2016: $794,671; 2015: $598,975)		761,713				607,843
	Other investments, at fair value (Cost 2016: $10,743; 2015: $10,816)		11,827				11,812
	Total investments		4,226,145				4,127,743
	Cash and cash equivalents		127,459				89,641
	Restricted cash and cash equivalents		378,328				242,859
	Accrued investment income		32,572				32,288
	Reinsurance balances receivable, net		554,069				377,318
	Reinsurance recoverable on unpaid losses		90,805				71,248
	Loan to related party		167,975				167,975
	Deferred commission and other acquisition expenses, net		455,522				397,548
	Goodwill and intangible assets, net		80,728				81,920
	Other assets		157,396				115,038
	Total Assets	$	6,270,999			$	5,703,578
	Liabilities and  Equity
	Liabilities
	Reserve for loss and loss adjustment expenses	$	2,636,631			$	2,510,101
	Unearned premiums		1,583,477				1,354,572
	Accrued expenses and other liabilities		168,756				139,873
	Senior notes
	Principal amount		362,500				360,000
	Less unamortized debt issuance costs		11,252				10,067
	Senior notes, net		351,248				349,933
	Total Liabilities		4,740,112				4,354,479
	Equity
	Preference Shares		480,000				480,000
	Common shares		751				747
	Additional paid-in capital		581,452				579,178
	Accumulated other comprehensive income (loss)		118,926				(23,767	)
	Retained earnings		353,576				316,184
	Treasury shares, at cost		(4,991	)			(4,521	)
	Total Maiden Shareholders’ Equity		1,529,714				1,347,821
	Noncontrolling interest in subsidiaries		1,173				1,278
	Total Equity		1,530,887				1,349,099
	Total Liabilities and Equity	$	6,270,999			$	5,703,578
	Book value per common share(4)	$	14.18			$	11.77
	Common shares outstanding		74,016,525				73,721,140

 

Maiden Holdings, Ltd.
Income Statement
(in thousands (000's), except per share data)
(Unaudited)
	For the Three Months Ended June 30, 2016				For the Three Months Ended June 30, 2015				For the Six Months Ended June 30, 2016				For the Six Months Ended June 30, 2015
Revenues:
Gross premiums written	$	688,322			$	674,168			$	1,552,436			$	1,508,434
Net premiums written	$	650,427			$	629,618			$	1,443,258			$	1,426,601
Change in unearned premiums		(12,863	)			(20,198	)			(189,685	)			(239,862	)
Net premiums earned		637,564				609,420				1,253,573				1,186,739
Other insurance revenue		1,525				2,252				6,351				7,231
Net investment income		35,323				35,157				71,625				63,417
Net realized gains on investment		334				242				2,611				1,111
Total revenues		674,746				647,071				1,334,160				1,258,498
Expenses:
Net loss and loss adjustment expenses		426,989				414,927				830,610				792,333
Commission and other acquisition expenses		185,727				175,697				380,795				354,039
General and administrative expenses		17,290				16,301				32,786				32,498
Total expenses		630,006				606,925				1,244,191				1,178,870
Income from operations(2)		44,740				40,146				89,969				79,628
Other expenses
Interest and amortization expenses		(7,193	)			(7,266	)			(14,458	)			(14,530	)
Accelerated amortization of senior note issuance cost		(2,345	)			-				(2,345	)			-
Amortization of intangible assets		(615	)			(710	)			(1,230	)			(1,420	)
Foreign exchange and other gains (losses)		5,520				(5,191	)			5,787				2,635
Total other expenses		(4,633	)			(13,167	)			(12,246	)			(13,315	)
Income before income taxes		40,107				26,979				77,723				66,313
Income tax expense		220				468				1,007				1,268
Net income		39,887				26,511				76,716				65,045
Add: loss attributable to noncontrolling interest		46				92				110				47
Net income attributable to Maiden		39,933				26,603				76,826				65,092
Dividends on preference shares(6)		(9,023	)			(6,084	)			(18,700	)			(12,168	)
Net income attributable to Maiden common shareholders	$	30,910			$	20,519			$	58,126			$	52,924
Net operating earnings attributable to Maiden common shareholders(1)	$	28,431			$	28,399			$	56,778			$	55,033
Basic earnings per common share attributable to Maiden shareholders	$	0.42			$	0.28			$	0.79			$	0.72
Diluted earnings  per common share attributable to Maiden shareholders	$	0.39			$	0.27			$	0.75			$	0.69
Basic operating earnings per common share attributable to Maiden shareholders	$	0.38			$	0.39			$	0.77			$	0.75
Diluted operating earnings per common share attributable to Maiden shareholders	$	0.37			$	0.37			$	0.73			$	0.71
Dividends declared per common share	$	0.14			$	0.13			$	0.28			$	0.26
Weighted average number of common shares - basic		73,997,759				73,482,506				73,934,518				73,284,559
Adjusted weighted average number of common shares and assumed conversions - diluted		85,926,626				85,566,706				85,894,062				85,414,344
Net loss and loss adjustment expense ratio(8)		66.8	%			67.8	%			65.9	%			66.3	%
Commission and other acquisition expense ratio(9)		29.1	%			28.7	%			30.2	%			29.7	%
General  and administrative expense ratio(10)		2.7	%			2.7	%			2.6	%			2.7	%
Expense ratio(11)		31.8	%			31.4	%			32.8	%			32.4	%
Combined ratio(12)		98.6	%			99.2	%			98.7	%			98.7	%
Annualized return on common equity		12.3	%			8.8	%			12.2	%			11.6	%
Annualized operating return on common equity(7)		11.3	%			12.2	%			11.9	%			12.1	%

 

Maiden Holdings, Ltd.
Non - GAAP Financial Measure
(in thousands (000's), except per share data)
(Unaudited)
		For the Three Months Ended June 30, 2016					For the Three Months Ended June 30, 2015					For the Six Months Ended June 30, 2016					For the Six Months Ended June 30, 2015
Reconciliation of net income attributable to Maiden common shareholders to net operating earnings:
Net income attributable to Maiden common shareholders		$		30,910			$		20,519			$		58,126			$		52,924
Add (subtract)
	Net realized gains on investment			(334	)				(242	)				(2,611	)				(1,111	)
	Foreign exchange and other (gains) losses			(5,520	)				5,191					(5,787	)				(2,635	)
	Amortization of intangible assets			615					710					1,230					1,420
	Divested excess and surplus "E&S" business and NGHC run-off			125					1,931					2,895					3,855
	Accelerated amortization of senior note issuance cost			2,345					-					2,345					-
	Non-cash deferred tax expense			290					290					580					580
Net operating earnings attributable to Maiden common shareholders(1)		$		28,431			$		28,399			$		56,778			$		55,033
Operating earnings per common share attributable to Maiden shareholders:
Basic earnings per common share attributable to Maiden shareholders		$		0.38			$		0.39			$		0.77			$		0.75
Diluted earnings per common share attributable to Maiden shareholders		$		0.37			$		0.37			$		0.73			$		0.71
Reconciliation of net income attributable to Maiden to income from operations:
Net income attributable to Maiden		$		39,933			$		26,603			$		76,826			$		65,092
Add (subtract)
	Foreign exchange and other (gains) losses			(5,520	)				5,191					(5,787	)				(2,635	)
	Amortization of intangible assets			615					710					1,230					1,420
	Interest and amortization expenses			7,193					7,266					14,458					14,530
	Accelerated amortization of senior note issuance cost			2,345					-					2,345					-
	Income tax expense			220					468					1,007					1,268
	Loss attributable to noncontrolling interest			(46	)				(92	)				(110	)				(47	)
Income from operations(2)		$		44,740			$		40,146			$		89,969			$		79,628
		June 30, 2016					December 31, 2015
Investable assets:
Total investments		$		4,226,145			$		4,127,743
Cash and cash equivalents				127,459					89,641
Restricted cash and cash equivalents				378,328					242,859
Loan to related party				167,975					167,975
Total investable assets(3)		$		4,899,907			$		4,628,218
		June 30, 2016					December 31, 2015
Capital:
Preference shares		$		480,000			$		480,000
Common shareholders' equity				1,049,714					867,821
Total Maiden shareholders' equity				1,529,714					1,347,821
2011 Senior Notes				-					107,500
2012 Senior Notes				100,000					100,000
2013 Senior Notes				152,500					152,500
2016 Senior Notes				110,000					-
Total capital resources(5)		$		1,892,214			$		1,707,821
(1) Net operating earnings is a non-GAAP financial measure defined by the Company as net income attributable to Maiden common shareholders excluding realized and unrealized investment gains and losses, foreign exchange and other gains and losses, amortization of intangible assets, divested excess and surplus business and NGHC run-off, accelerated amortization of senior note issuance cost and non-cash deferred tax expense 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, interest and amortization expenses, accelerated amortization of senior note issuance cost, income tax expense and income or loss attributable to noncontrolling interest and should not be considered as an alternative to net income.  The Company’s management believes that income from operations is a useful measure of the Company’s underlying earnings fundamentals based on its underwriting and investment income before financing costs. This income from operations enables readers of this information to more clearly understand the essential operating results of the Company. The Company’s measure of income from operations may not be comparable to similarly titled measures used by other companies.
(3) Investable assets is the total of the Company's investments, cash and cash equivalents and loan to a related party.
(4) Book value per common share is calculated using common shareholders’ equity (shareholders' equity excluding the aggregate liquidation value of our preference shares) divided by the number of common shares outstanding.
(5) Total capital resources is the sum of the Company's principal amount of debt and Maiden shareholders' equity.
(6) Dividends on preference shares consist of $3,094 and $6,188 paid to Preference Shares - Series A and $2,990 and $5,980 paid to Preference shares - Series B during the three and six months ended June 30, 2016 and 2015, respectively, and $2,939 and $6,532 paid to Preference shares - Series C during the three and six months ended June 30, 2016, respectively.
(7) Operating return on average common equity is a non-GAAP financial measures. Management uses operating return on average common shareholders' equity as a measure of profitability that focuses on the return to Maiden common shareholders. It is calculated using operating earnings available to common shareholders divided by average Maiden common shareholders' equity.

 

Maiden Holdings, Ltd.
Supplemental Financial Data - Segment Information
(in thousands (000's))
(Unaudited)
For the Three Months Ended June 30, 2016		Diversified Reinsurance						AmTrust Reinsurance						Other						Total
Gross premiums written		$		164,834				$		523,488				$		-				$		688,322
Net premiums written		$		161,294				$		489,133				$		-				$		650,427
Net premiums earned		$		190,755				$		446,809				$		-				$		637,564
Other insurance revenue				1,525						-						-						1,525
Net loss and loss adjustment expenses				(144,246	)					(282,619	)					(124	)					(426,989	)
Commissions and other acquisition expenses				(45,496	)					(140,230	)					(1	)					(185,727	)
General and administrative expenses				(9,079	)					(963	)					-						(10,042	)
Underwriting income (loss)		$		(6,541	)			$		22,997				$		(125	)			$		16,331
Reconciliation to net income
Net investment income and realized gains on investment																						35,657
Interest and amortization expenses																						(7,193	)
Accelerated amortization of senior note issuance cost																						(2,345	)
Amortization of intangible assets																						(615	)
Foreign exchange and other gains																						5,520
Other general and administrative expenses																						(7,248	)
Income tax expense																						(220	)
Net income																				$		39,887
Net loss and loss adjustment expense ratio(8)				75.0	%					63.3	%											66.8	%
Commission and other acquisition expense ratio(9)				23.7	%					31.4	%											29.1	%
General and administrative expense ratio(10)				4.7	%					0.2	%											2.7	%
Combined ratio(12)				103.4	%					94.9	%											98.6	%
For the Three Months Ended June 30, 2015		Diversified Reinsurance						AmTrust Reinsurance						Other						Total
Gross premiums written		$		151,646				$		522,522				$		-				$		674,168
Net premiums written		$		144,785				$		484,833				$		-				$		629,618
Net premiums earned		$		184,803				$		424,617				$		-				$		609,420
Other insurance revenue				2,252						-						-						2,252
Net loss and loss adjustment expenses				(142,992	)					(270,142	)					(1,793	)					(414,927	)
Commissions and other acquisition expenses				(42,412	)					(133,147	)					(138	)					(175,697	)
General and administrative expenses				(8,438	)					(797	)					-						(9,235	)
Underwriting income (loss)		$		(6,787	)			$		20,531				$		(1,931	)			$		11,813
Reconciliation to net income
Net investment income and realized gains on investment																						35,399
Interest and amortization expenses																						(7,266	)
Amortization of intangible assets																						(710	)
Foreign exchange and other losses																						(5,191	)
Other general and administrative expenses																						(7,066	)
Income tax expense																						(468	)
Net income																				$		26,511
Net loss and loss adjustment expense ratio(8)				76.4	%					63.6	%											67.8	%
Commission and other acquisition expense ratio(9)				22.7	%					31.4	%											28.7	%
General and administrative expense ratio(10)				4.5	%					0.2	%											2.7	%
Combined ratio(12)				103.6	%					95.2	%											99.2	%

 

Maiden Holdings, Ltd.
Supplemental Financial Data - Segment Information
(in thousands (000's))
(Unaudited)
For the Six Months Ended June 30, 2016		Diversified Reinsurance						AmTrust Reinsurance						Other						Total
Gross premiums written		$		480,638				$		1,071,798						-				$		1,552,436
Net premiums written		$		447,430				$		995,828						-				$		1,443,258
Net premiums earned		$		363,011				$		890,562						-				$		1,253,573
Other insurance revenue				6,351						-						-						6,351
Net loss and loss adjustment expenses				(263,322	)					(564,393	)					(2,895	)					(830,610	)
Commissions and other acquisition expenses				(100,027	)					(280,768	)					-						(380,795	)
General and administrative expenses				(17,679	)					(1,549	)					-						(19,228	)
Underwriting income (loss)		$		(11,666	)			$		43,852				$		(2,895	)			$		29,291
Reconciliation to net income
Net investment income and realized gains on investment																						74,236
Interest and amortization expenses																						(14,458	)
Accelerated amortization of senior note issuance cost																						(2,345	)
Amortization of intangible assets																						(1,230	)
Foreign exchange and other gains																						5,787
Other general and administrative expenses																						(13,558	)
Income tax expense																						(1,007	)
Net income																				$		76,716
Net loss and loss adjustment expense ratio(8)				71.3	%					63.4	%											65.9	%
Commission and other acquisition expense ratio(9)				27.1	%					31.5	%											30.2	%
General and administrative expense ratio(10)				4.8	%					0.2	%											2.6	%
Combined ratio(12)				103.2	%					95.1	%											98.7	%
For the Six Months Ended June 30, 2015		Diversified Reinsurance						AmTrust Reinsurance						Other						Total
Gross premiums written		$		456,987				$		1,051,448				$		(1	)			$		1,508,434
Net premiums written		$		438,983				$		987,617				$		1				$		1,426,601
Net premiums earned		$		377,487				$		809,250				$		2				$		1,186,739
Other insurance revenue				7,231						-						-						7,231
Net loss and loss adjustment expenses				(275,378	)					(513,236	)					(3,719	)					(792,333	)
Commissions and other acquisition expenses				(100,618	)					(253,283	)					(138	)					(354,039	)
General and administrative expenses				(17,758	)					(1,544	)					-						(19,302	)
Underwriting income (loss)		$		(9,036	)			$		41,187				$		(3,855	)			$		28,296
Reconciliation to net income
Net investment income and realized gains on investment																						64,528
Interest and amortization expenses																						(14,530	)
Amortization of intangible assets																						(1,420	)
Foreign exchange and other gains																						2,635
Other general and administrative expenses																						(13,196	)
Income tax expense																						(1,268	)
Net income																				$		65,045
Net loss and loss adjustment expense ratio(8)				71.6	%					63.4	%											66.3	%
Commission and other acquisition expense ratio(9)				26.2	%					31.3	%											29.7	%
General and administrative expense ratio(10)				4.5	%					0.2	%											2.7	%
Combined ratio(12)				102.3	%					94.9	%											98.7	%
(8) Calculated by dividing net loss and loss adjustment expenses by the sum of net premiums earned and other insurance revenue.
(9) Calculated by dividing commission and other acquisition expenses by the sum of net premiums earned and other insurance revenue.
(10) Calculated by dividing general and administrative expenses by the sum of net premiums earned and other insurance revenue.
(11) Calculated by adding together the commission and other acquisition expense ratio and general and administrative expense ratio.
(12) Calculated by adding together the net loss and loss adjustment expense ratio and expense ratio.

 

CONTACT:
 
Noah Fields, Senior Vice President, Investor Relations
Maiden Holdings, Ltd.
Phone: 441.298.4927
E-mail: nfields@maiden.bm