Highlights for the Quarter Ended June
30, 2018
Maiden Holdings, Ltd. (NASDAQ: MHLD) (“Maiden” or the “Company”)
today reported second quarter 2018 net loss attributable to Maiden
common shareholders of $5.9 million or $0.07 per diluted common
share compared to a net loss attributable to Maiden common
shareholders of $22.4 million or $0.26 per diluted common share in
the second quarter of 2017. The non-GAAP operating loss(11)
was $10.7 million, or $0.13 per diluted common share compared with
a non-GAAP operating loss of $12.5 million, or $0.14 per diluted
common share in the second quarter of 2017.
Commenting on the Company’s results, President
and Chief Executive Officer, Art Raschbaum said, “While we did
experience continued loss development during the second quarter,
our Diversified combined ratios are significantly better in 2018 as
compared to 2017, with much lower prior year adverse loss
development. We continue to evaluate the impact of the
operational changes taking place in the underlying claims for the
AmTrust segment and believe we are taking a prudent course as more
is learned and observed regarding these continuing changes.
Revenue in the quarter reflected a continued moderation of premiums
from our largest client, AmTrust, somewhat offset by increased
premiums in the Diversified segment. We remain committed to
restoring underwriting profitability by maintaining disciplined
underwriting and through our strategic review (which we discuss
later in this release), enhancing shareholder value.”
Consolidated Results for the Quarter
Ended June 30, 2018
In the second quarter of 2018, gross premiums
written decreased to $654.2 million from $705.2 million in the
second quarter of 2017 primarily due to a decline in premiums
written in the Company’s AmTrust segment, the combination of market
conditions and underwriting measures applied by AmTrust during the
period, particularly in its workers’ compensation line of
business. These declines were partially offset by an increase
in gross premiums in the Diversified segment, which included new
account growth and expansion of our client relationships in the
segment’s U.S. portfolio. Net premiums written totaled $645.6
million in the second quarter of 2018, a decrease of 5.6% compared
to $684.1 million in the second quarter of 2017. Net premiums
earned were $667.3 million in the second quarter of 2018 compared
to $711.1 million in the second quarter of 2017, representing a
decrease of 6.2%.
Net loss and loss adjustment expenses of $491.6
million compared to $528.6 million in the second quarter of
2017. The loss ratio(6) in the second quarter of 2018 was
73.4% compared to 74.1% reported in the second quarter of 2017.
Commission and other acquisition expenses
decreased 5.4% to $198.7 million in the second quarter of 2018,
compared to $210.0 million in the second quarter of 2017 resulting
in a commission and other acquisition expense ratios of 29.7% and
29.5%, respectively. General and administrative expenses for
the second quarter of 2018 totaled $19.6 million compared with
$15.3 million in the second quarter of 2017 primarily due to
increases in audit, legal actuarial and other professional fees and
higher technology-related expenses. The general and administrative
expense ratio(8) in the second quarter of 2018 increased to 2.9%
compared to 2.2% in the second quarter of 2017, while the expense
ratio(9) was 32.6% in the second quarter of 2018 compared with
31.7% in the same quarter last year.
The combined ratio(10) for the second quarter of
2018 totaled 106.0% compared with 105.8% in the second quarter of
2017.
Net investment income grew by 9.4% in the
quarter to $44.3 million.. As of June 30, 2018, the average
yield on the fixed income portfolio was 3.19% while the average
duration of investable assets was 4.4 years.
Diversified Reinsurance
Segment
| |
|
For the Three Months Ended June
30, |
|
|
| ($ in thousands) |
|
2018 |
|
2017 |
|
Change in (%) |
| Gross
premiums written |
|
$ |
162,751 |
|
|
$ |
140,841 |
|
|
15.6% |
|
| Net
premiums written |
|
$ |
154,278 |
|
|
$ |
137,247 |
|
|
12.4% |
|
| Net
premiums earned |
|
$ |
191,497 |
|
|
$ |
204,219 |
|
|
(6.2)% |
|
| |
|
|
|
|
|
|
|
Underwriting Ratios |
|
|
|
|
|
% Point Change |
| Net
loss and LAE ratio(6) |
|
71.7 |
% |
|
86.0 |
% |
|
(14.3 |
) |
|
Commission and other acquisition expense ratio(7) |
|
23.8 |
% |
|
22.8 |
% |
|
1.0 |
|
|
General and administrative expense ratio(8) |
|
5.6 |
% |
|
4.1 |
% |
|
1.5 |
|
|
Expense ratio(9) |
|
29.4 |
% |
|
26.9 |
% |
|
2.5 |
|
|
Combined ratio(10) |
|
101.1 |
% |
|
112.9 |
% |
|
(11.8 |
) |
Gross premiums written and net premiums written
increased by 15.6% and 12.4%, respectively, in the second quarter
of 2018 primarily due to new account growth and expansion of other
client relationships within the U.S. Net premiums
earned decreased by 6.2% in the second quarter of 2018 driven by
non-renewals and re-underwriting of certain contracts in 2017 and
during the six months ended June 30, 2018. The segment
experienced adverse prior year loss development of $8.0 million for
the second quarter of 2018 largely from General Liability and
Commercial Auto treaty contracts. This compared to adverse
prior year development of $25.4 million in the same period last
year primarily due to adverse development in facultative commercial
auto as well as a handful of specific contracts across several
lines of business. The segment’s combined ratio decreased to
101.1% in the second quarter of 2018 compared to 112.9% in the same
period last year due primarily to lower adverse prior year
development compared to the prior period offset slightly by higher
general and administrative expenses.
AmTrust Reinsurance Segment
| |
|
For the Three Months Ended June
30, |
|
|
| ($ in thousands) |
|
2018 |
|
2017 |
|
Change in (%) |
| Gross
premiums written |
|
$ |
491,485 |
|
|
$ |
564,276 |
|
|
(12.9)% |
|
| Net
premiums written |
|
$ |
491,311 |
|
|
$ |
546,735 |
|
|
(10.1)% |
|
| Net
premiums earned |
|
$ |
475,849 |
|
|
$ |
506,816 |
|
|
(6.1)% |
|
| |
|
|
|
|
|
|
|
Underwriting Ratios |
|
|
|
|
|
% Point Change |
| Net
loss and LAE ratio(6) |
|
74.4 |
% |
|
69.2 |
% |
|
5.2 |
|
|
Commission and other acquisition expense ratio(7) |
|
32.1 |
% |
|
32.2 |
% |
|
(0.1 |
) |
|
General and administrative expense ratio(8) |
|
0.2 |
% |
|
0.1 |
% |
|
0.1 |
|
|
Expense ratio(9) |
|
32.3 |
% |
|
32.3 |
% |
|
--- |
|
|
Combined ratio(10) |
|
106.7 |
% |
|
101.5 |
% |
|
5.2 |
|
Gross premiums written decreased 12.9% during
the second quarter of 2018 and reflects reductions in the Small
Commercial business lines, particularly AmTrust’s workers’
compensation line of business. The slightly lower decrease in net
premiums written was due to the lower utilization of retrocessional
capacity compared to the second quarter of 2017. Net premiums
earned in the segment decreased by 6.1% compared to the same period
in 2017 mainly due to the decline in net premiums written in the
AmTrust quota share. The segment experienced adverse prior
year development of $28.4 million for the second quarter of 2018
mainly from Worker’s Compensation and General Liability. This
compares to $29.4 million of adverse development for the second
quarter of 2017 primarily related to non-program casualty and
European hospital liability. The segment combined ratio was
106.7% in the second quarter of 2018 compared to 101.5% in the same
period in 2017 primarily due to higher initial current year loss
ratios on current year premiums earned during the period slightly
offset by a comparatively smaller amount of adverse prior period
loss development.
Consolidated Results for the Six Months
Ended June 30, 2018
Net income attributable to Maiden common
shareholders was $7.8 million or $0.09 per diluted common share in
the first six months of 2018 compared to a net loss attributable to
Maiden common shareholders of $1.9 million or $0.02 per diluted
common share in the first half of 2017. Non-GAAP operating
earnings(11) for the first six month of 2018 were $6.2 million, or
$0.07 per diluted common share compared with a non-GAAP net
operating earnings of $10.2 million, or $0.12 per diluted common
share in the first half of 2017.
For the first six months of 2018, gross premiums
written decreased to $1.51 billion from $1.63 billion in the first
six months of 2017 primarily due to non-renewals and
re-underwriting of certain Diversified contracts conducted in both
2017 and in early 2018. Net premiums written totaled $1.49 billion
in the first six months of 2018, a decrease of 5.7% compared to
$1.58 billion in the same period in 2017. Net premiums earned
were $1.35 billion in the first six months of 2018 compared to
$1.42 billion in the same period in 2017, representing a decrease
of 4.8%.
Net loss and loss adjustment expenses of $964.9
million compared to $1.01 billion in the first six months of
2017. The loss ratio(6) in the first six months of 2018 was
71.0% compared to 70.8% reported in the same period in 2017.
Commission and other acquisition expenses
decreased 5.7% to $407.4 million in the first six months of 2018,
compared to $432.1 million in the first half of 2017 resulting in a
commission and other acquisition expense ratio of 30.0% compared to
30.3%, respectively. General and administrative expenses for
the first six months of 2018 totaled $39.5 million compared with
$32.8 million in the first six months of 2017 primarily due to
higher audit, legal and other professional fees and
technology-related expenses. The general and administrative expense
ratio(8) in the first six months of 2018 was 2.9% compared to 2.3%
in the same period in 2017, while the expense ratio(9) was 32.9% in
the first six months of 2018 compared with 32.6% in the same period
last year.
The combined ratio(10) for the first six months
of 2018 totaled 103.9% compared with 103.4% in the first half of
2017.
Net investment income was $87.2 million in the
first six months 2018 compared to $82.7 million in the first six
months of 2017.
Diversified Reinsurance
Segment
| |
|
For the Six Months Ended June 30, |
|
|
| ($ in thousands) |
|
2018 |
|
2017 |
|
Change in (%) |
| Gross
premiums written |
|
$ |
441,463 |
|
|
$ |
472,886 |
|
|
(6.6)% |
|
| Net
premiums written |
|
$ |
429,231 |
|
|
$ |
464,743 |
|
|
(7.6)% |
|
| Net
premiums earned |
|
$ |
385,631 |
|
|
$ |
406,061 |
|
|
(5.0)% |
|
| |
|
|
|
|
|
|
|
Underwriting Ratios |
|
|
|
|
|
% Point Change |
| Net
loss and LAE ratio(6) |
|
70.0 |
% |
|
76.7 |
% |
|
(6.7 |
) |
|
Commission and other acquisition expense ratio(7) |
|
24.9 |
% |
|
25.5 |
% |
|
(0.6 |
) |
|
General and administrative expense ratio(8) |
|
5.4 |
% |
|
4.2 |
% |
|
1.2 |
|
|
Expense ratio(9) |
|
30.3 |
% |
|
29.7 |
% |
|
0.6 |
|
|
Combined ratio(10) |
|
100.3 |
% |
|
106.4 |
% |
|
(6.1 |
) |
Gross premiums written and net premiums written
decreased by 6.6% and 7.6%, respectively, in the second quarter of
2018 primarily as a result of non-renewals and re-underwriting of
certain contracts in 2017 and during the first six months of 2018.
Net premiums earned decreased by 5.0% in the first half of 2018 due
to non-renewals and other underwriting actions taken as mentioned
above. The segment’s adverse prior year development was $9.1
million for the first six months of 2018, compared to $31.6 million
for the same period in 2017. The 2018 development was from
higher than expected loss emergence emanating largely from General
Liability and Commercial Auto Liability run-off treaty contracts.
The adverse development in the first half of 2017 was primarily
from facultative commercial auto as well as a handful of specific
contracts across several lines of business. The segment’s
combined ratio was 100.3% in the second quarter of 2018 compared to
106.4% due to lower net adverse development compared to the same
period in 2017.
AmTrust Reinsurance Segment
| |
|
For the Six Months Ended June 30, |
|
|
| ($ in thousands) |
|
2018 |
|
2017 |
|
Change in (%) |
| Gross
premiums written |
|
$ |
1,065,413 |
|
|
$ |
1,155,658 |
|
|
(7.8)% |
|
| Net
premiums written |
|
$ |
1,065,691 |
|
|
$ |
1,119,787 |
|
|
(4.8)% |
|
| Net
premiums earned |
|
$ |
967,147 |
|
|
$ |
1,014,458 |
|
|
(4.7)% |
|
| |
|
|
|
|
|
|
|
Underwriting Ratios |
|
|
|
|
|
% Point Change |
| Net
loss and LAE ratio(6) |
|
71.4 |
% |
|
68.3 |
% |
|
3.1 |
|
|
Commission and other acquisition expense ratio(7) |
|
32.1 |
% |
|
32.2 |
% |
|
(0.1 |
) |
|
General and administrative expense ratio(8) |
|
0.2 |
% |
|
0.1 |
% |
|
0.1 |
|
|
Expense ratio(9) |
|
32.3 |
% |
|
32.3 |
% |
|
--- |
|
|
Combined ratio(10) |
|
103.7 |
% |
|
100.6 |
% |
|
3.1 |
|
Gross premiums written decreased 7.8% during the
first half of 2018 and reflects reductions in the Small Commercial
Business assumed from AmTrust. Net premiums written decreased
by 4.8% in the first half of 2018 largely due to a combination of
market conditions and underwriting measures applied by AmTrust
during the period, particularly in workers’ compensation. Net
premiums earned in the segment decreased by 4.7% compared to the
same period in 2017 mainly due to the decline in net premiums
written in the AmTrust quota share. The segment experienced
adverse prior year development of $36.9 million for the first half
of 2018 largely from Worker’s Compensation and General Liability,
with a smaller contribution from Commercial Auto Liability.
This compares to adverse prior year loss development for the first
six months of 2017 of $39.7 million primarily related to
non-program casualty and European hospital lines of business.
The segment combined ratio was 103.7% in the first six months of
2018 compared to 100.6% in the same period in 2017 primarily due to
higher initial current year loss ratios for premiums earned during
the period slightly offset by a comparatively smaller amount of
adverse prior period loss development.
Other Financial Matters
- Total assets were $6.7 billion at June 30, 2018 compared to
$6.8 billion at March 31, 2018. Shareholders' equity
was $1.11 billion at June 30, 2018 compared to $1.16 billion at
March 31, 2018.
- Book value per common share(1) was $7.71 at June 30, 2018
compared to $9.25 at December 31, 2017. In the second quarter of
2018, the Company recognized unrealized losses in its fixed income
investment portfolio of $49.7 million, resulting in a $0.60
decrease in book value per share, and total AOCI of $97.0 million
at June 30, 2018. Book value per common share excluding total
AOCI was $8.87 at June 30, 2018 compared to $9.08 at December 31,
2017.
Strategic Review Update and Executive
Leadership Changes
As previously announced, earlier in 2018 the
Company embarked on a strategic review of its operations in order
to increase value to its shareholders. As part of this ongoing
process, the Company continues to evaluate a broad range of
options, but the Company will be maintaining a substantial presence
in the U.S. reinsurance market which draws on Maiden’s specialist
focus from which it expects to build. The Company anticipates that
it will complete its strategic review during the second half of
2018 with the majority of this initiative completed during the
upcoming third quarter. As the Company continues to evaluate
various additional strategic measures, it expects improved results
of operations from its Diversified Segment in the future via
enhanced underwriting standards and expense reduction. These
actions are expected to position the Company for growth with
greater operating efficiencies going forward. Executive
management will provide shareholders with regular updates of these
initiatives.
The Company also announced that Art Raschbaum,
Maiden’s President and Chief Executive Officer, has communicated
his decision to retire for personal reasons effective September 1,
2018. The Company’s Board of Directors have appointed
Lawrence F. Metz, Maiden’s current Executive Vice President,
General Counsel and Secretary, to serve in the role of President
and Chief Executive Officer. Additionally, Karen Schmitt,
Chief Financial Officer, has announced her retirement and will
remain with the Company as Executive Vice President until March 1,
2019. Maiden’s Board of Directors has announced that Patrick
J. Haveron, currently President of Maiden Reinsurance Ltd. (“Maiden
Bermuda”), has been named Maiden’s Chief Financial Officer and
Chief Operating Officer effective September 1, 2018. Mr. Haveron
will remain as President of Maiden Bermuda.
“We appreciate the many contributions that Art
has made to Maiden over the years,” said Barry D. Zyskind, Chairman
of the Board of Directors. “He has demonstrated strong
leadership and business acumen since joining Maiden in 2008.
I want to recognize his significant contributions to
Maiden and thank him for his many years of service. We are
also appreciative of the contributions that Karen has made to our
organization over many years and sincerely thank her for agreeing
to stay on to assist with the transition. We are excited to
have Larry and Pat, two long time leaders at Maiden, to step in to
their new roles. During our strategic review, the Board
recognized some very valuable business in our Diversified
platform. We will be focusing on those niches in the future,
which along with cutting expenses, will bring the Company back to
acceptable levels of profitability. We are confident in our
new executive management team to execute this plan.”
Mr. Metz has been a senior leader of Maiden
since his appointment as Senior Vice President, General Counsel and
Secretary in 2009. During his tenure at Maiden, his
responsibilities have expanded to include oversight of much of the
Company’s operating infrastructure in his role as President of
Maiden Global Servicing Company. In addition to his Maiden
responsibilities, Mr. Metz serves as the Chair of the Legal
Subcommittee of the Legal and Government Affairs Committee of the
Property Casualty Insurers Association of America, and also serves
on the Board of Advisors of the RAND Center for Corporate Ethics
and Governance.
Mr. Haveron has served as Executive Vice
President of Maiden Holdings since 2010 and as President
of Maiden Bermuda since February 2014, and previously served
as President of Maiden Global Servicing Company after joining
Maiden in 2009. In addition Mr. Haveron has over 30 years of
insurance and reinsurance industry experience and has served as a
Chief Executive Officer, Chief Financial Officer and Chief
Operating Officer of both public and private companies in the
past.
Extension of AmTrust Quota Share
Agreement Renewal Notice Date
Additionally, the Company announced that its
Board of Directors and the Board of Directors for AmTrust have
agreed to extend the renewal provision for the master agreement by
which Maiden Bermuda and AmTrust’s Bermuda reinsurance
subsidiary, AmTrust International Insurance, Ltd. (“AII”) entered
into a reinsurance agreement by which AII retrocedes to Maiden
Bermuda an amount equal to 40% of the premium written by
subsidiaries of AmTrust. The current agreement was renewed on
July 1, 2016 for a three year term through June 30, 2019. The
agreement automatically renews for successive three-year periods
unless either AII or Maiden Bermuda elects to terminate the
agreement by giving written notice to the other party not less than
nine months prior to the expiration of any successive three-year
term. The new written notice date for renewal of the
agreement has been extended from September 30, 2018 to January 31,
2019.
(1)(11) 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.
(6)(7)(8)(9)(10) Loss ratio, commission and
other acquisition expense ratio, general and administrative expense
ratio, expense ratio and combined ratio are non-GAAP operating
metrics. Please see the additional information on these measures
under Non-GAAP Financial Measures tables.
About Maiden Holdings, Ltd.
Maiden Holdings, Ltd. is a Bermuda-based holding
company formed in 2007. Through its subsidiaries, which are
each rated A- (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, 2018, Maiden had
$6.7 billion in assets and shareholders' equity of $1.1
billion.
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 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,
2017 as updated in periodic filings with the SEC. However these
factors should not be construed as exhaustive. Forward-looking
statements speak only as of the date they are made and the Company
undertakes no obligation to update or revise any forward-looking
statement that may be made from time to time, whether as a result
of new information, future developments or otherwise, except as
required by law.
Contact:
Bill Horning, Senior Vice President, Investor RelationsMaiden
Holdings, Ltd.Phone: 856.359.2532E-mail: bhorning@maiden.bm
| |
| MAIDEN HOLDINGS, LTD. |
| CONSOLIDATED BALANCE SHEETS |
| (In thousands of U.S. dollars, except share and
per share data) |
| |
|
|
|
|
| |
|
June 30, 2018 |
|
December 31,2017 |
| |
|
(Unaudited) |
|
(Audited) |
|
ASSETS |
|
|
|
|
| Investments: |
|
|
|
|
| Fixed
maturities, available-for-sale, at fair value (amortized cost 2018:
$4,064,595; 2017: $4,027,993) |
|
$ |
3,966,910 |
|
|
$ |
4,044,370 |
|
| Fixed
maturities, held-to-maturity, at amortized cost (fair value 2018:
$1,026,672; 2017: $1,125,626) |
|
1,039,144 |
|
|
1,097,801 |
|
| Other
investments, at fair value |
|
5,898 |
|
|
6,600 |
|
| Total investments |
|
5,011,952 |
|
|
5,148,771 |
|
| Cash and cash
equivalents |
|
72,102 |
|
|
67,919 |
|
| Restricted cash and
cash equivalents |
|
154,677 |
|
|
123,584 |
|
| Accrued investment
income |
|
34,228 |
|
|
34,993 |
|
| Reinsurance balances
receivable, net |
|
467,646 |
|
|
345,043 |
|
| Reinsurance recoverable
on unpaid losses |
|
109,805 |
|
|
117,611 |
|
| Loan to related
party |
|
167,975 |
|
|
167,975 |
|
| Deferred commission and
other acquisition expenses, net |
|
472,202 |
|
|
439,597 |
|
| Goodwill and intangible
assets, net |
|
74,659 |
|
|
75,583 |
|
| Other assets |
|
152,942 |
|
|
123,113 |
|
|
Total assets |
|
$ |
6,718,188 |
|
|
$ |
6,644,189 |
|
|
LIABILITIES |
|
|
|
|
| Reserve for loss and
loss adjustment expenses |
|
$ |
3,653,303 |
|
|
$ |
3,547,248 |
|
| Unearned premiums |
|
1,603,883 |
|
|
1,477,038 |
|
| Accrued expenses and
other liabilities |
|
100,121 |
|
|
132,795 |
|
| Senior notes -
principal amount |
|
262,500 |
|
|
262,500 |
|
| Less:
unamortized debt issuance costs |
|
7,913 |
|
|
8,018 |
|
| Senior notes, net |
|
254,587 |
|
|
254,482 |
|
|
Total liabilities |
|
5,611,894 |
|
|
5,411,563 |
|
| Commitments and
Contingencies |
|
|
|
|
|
EQUITY |
|
|
|
|
| Preference shares |
|
465,000 |
|
|
465,000 |
|
| Common shares |
|
879 |
|
|
877 |
|
| Additional paid-in
capital |
|
749,319 |
|
|
748,113 |
|
| Accumulated other
comprehensive (loss) income |
|
(96,959 |
) |
|
13,354 |
|
| Retained earnings |
|
18,338 |
|
|
35,472 |
|
| Treasury shares, at
cost |
|
(30,835 |
) |
|
(30,642 |
) |
| Total Maiden
Shareholders’ Equity |
|
1,105,742 |
|
|
1,232,174 |
|
| Noncontrolling
interest in subsidiaries |
|
552 |
|
|
452 |
|
|
Total Equity |
|
1,106,294 |
|
|
1,232,626 |
|
|
Total Liabilities and Equity |
|
$ |
6,718,188 |
|
|
$ |
6,644,189 |
|
| |
|
|
|
|
| Book value per
common share(1) |
|
$ |
7.71 |
|
|
$ |
9.25 |
|
| |
|
|
|
|
| Common shares
outstanding |
|
83,143,237 |
|
|
82,974,895 |
|
| |
|
|
|
|
|
|
|
|
| MAIDEN HOLDINGS, LTD. |
| CONSOLIDATED STATEMENTS OF
INCOME |
| (In thousands of U.S. dollars, except share
and per share data) |
| |
|
|
|
|
| |
|
For the Three Months Ended June
30, |
|
For the Six Months Ended June 30, |
| |
|
2018 |
|
2017 |
|
2018 |
|
2017 |
| |
|
(Unaudited) |
|
(Unaudited) |
|
Revenues: |
|
|
|
|
|
|
|
|
| Gross premiums
written |
|
$ |
654,236 |
|
|
$ |
705,198 |
|
|
$ |
1,506,876 |
|
|
$ |
1,628,625 |
|
| Net premiums
written |
|
$ |
645,589 |
|
|
$ |
684,072 |
|
|
$ |
1,494,922 |
|
|
$ |
1,584,620 |
|
| Change in unearned
premiums |
|
21,757 |
|
|
27,053 |
|
|
(142,144 |
) |
|
(164,011 |
) |
|
Net premiums earned |
|
667,346 |
|
|
711,125 |
|
|
1,352,778 |
|
|
1,420,609 |
|
| Other insurance
revenue |
|
2,033 |
|
|
1,547 |
|
|
5,759 |
|
|
5,328 |
|
| Net investment
income |
|
44,313 |
|
|
40,512 |
|
|
87,183 |
|
|
82,669 |
|
| Net realized (losses)
gains on investment |
|
(414 |
) |
|
1,572 |
|
|
(57 |
) |
|
2,457 |
|
|
Total revenues |
|
713,278 |
|
|
754,756 |
|
|
1,445,663 |
|
|
1,511,063 |
|
|
Expenses: |
|
|
|
|
|
|
|
|
| Net loss and loss
adjustment expenses |
|
491,554 |
|
|
528,620 |
|
|
964,878 |
|
|
1,009,189 |
|
| Commission and other
acquisition expenses |
|
198,745 |
|
|
210,039 |
|
|
407,359 |
|
|
432,068 |
|
| General and
administrative expenses |
|
19,574 |
|
|
15,346 |
|
|
39,524 |
|
|
32,760 |
|
|
Total expenses |
|
709,873 |
|
|
754,005 |
|
|
1,411,761 |
|
|
1,474,017 |
|
| Non-GAAP income
from operations(2) |
|
3,405 |
|
|
751 |
|
|
33,902 |
|
|
37,046 |
|
| Other
expenses |
|
|
|
|
|
|
|
|
| Interest and
amortization expenses |
|
(4,829 |
) |
|
(6,745 |
) |
|
(9,658 |
) |
|
(13,601 |
) |
| Accelerated
amortization of senior note issuance cost |
|
— |
|
|
(2,809 |
) |
|
— |
|
|
(2,809 |
) |
| Amortization of
intangible assets |
|
(462 |
) |
|
(533 |
) |
|
(924 |
) |
|
(1,066 |
) |
| Foreign exchange gains
(losses) |
|
4,821 |
|
|
(6,722 |
) |
|
2,414 |
|
|
(8,643 |
) |
|
Total other expenses |
|
(470 |
) |
|
(16,809 |
) |
|
(8,168 |
) |
|
(26,119 |
) |
| Income (loss)
before income taxes |
|
2,935 |
|
|
(16,058 |
) |
|
25,734 |
|
|
10,927 |
|
| Less: income tax
expense |
|
255 |
|
|
277 |
|
|
711 |
|
|
761 |
|
| Net income
(loss) |
|
2,680 |
|
|
(16,335 |
) |
|
25,023 |
|
|
10,166 |
|
| Add: net (income) loss
attributable to noncontrolling interest |
|
(47 |
) |
|
9 |
|
|
(118 |
) |
|
31 |
|
| Net income
(loss) attributable to Maiden |
|
2,633 |
|
|
(16,326 |
) |
|
24,905 |
|
|
10,197 |
|
| Dividends on preference
shares(3) |
|
(8,546 |
) |
|
(6,033 |
) |
|
(17,091 |
) |
|
(12,066 |
) |
| Net (loss)
income attributable to Maiden common shareholders |
|
$ |
(5,913 |
) |
|
$ |
(22,359 |
) |
|
$ |
7,814 |
|
|
$ |
(1,869 |
) |
| Basic (loss)
earnings per common share attributable to Maiden
shareholders |
|
$ |
(0.07 |
) |
|
$ |
(0.26 |
) |
|
$ |
0.09 |
|
|
$ |
(0.02 |
) |
| Diluted (loss)
earnings per common share attributable to Maiden
shareholders(15) |
|
$ |
(0.07 |
) |
|
$ |
(0.26 |
) |
|
$ |
0.09 |
|
|
$ |
(0.02 |
) |
| Dividends
declared per common share |
|
$ |
0.15 |
|
|
$ |
0.15 |
|
|
$ |
0.30 |
|
|
$ |
0.30 |
|
| Annualized
return on average common equity |
|
(3.6 |
)% |
|
(8.6 |
)% |
|
2.2 |
% |
|
(0.4 |
)% |
| Weighted
average number of common shares - basic |
|
83,126,204 |
|
|
86,564,794 |
|
|
83,083,545 |
|
|
86,458,413 |
|
| Adjusted
weighted average number of common shares and assumed conversions -
diluted(15) |
|
83,126,204 |
|
|
86,564,794 |
|
|
83,373,285 |
|
|
86,458,413 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| MAIDEN HOLDINGS, LTD. |
| SUPPLEMENTAL FINANCIAL DATA - SEGMENT
INFORMATION (Unaudited) |
| (in thousands of U.S. dollars) |
| |
|
|
|
|
|
|
|
|
|
For the Three Months Ended June 30, 2018 |
|
DiversifiedReinsurance |
|
AmTrustReinsurance |
|
Other |
|
Total |
| Gross premiums
written |
|
$ |
162,751 |
|
|
$ |
491,485 |
|
|
$ |
— |
|
|
$ |
654,236 |
|
| Net premiums
written |
|
$ |
154,278 |
|
|
$ |
491,311 |
|
|
$ |
— |
|
|
$ |
645,589 |
|
| Net premiums
earned |
|
$ |
191,497 |
|
|
$ |
475,849 |
|
|
$ |
— |
|
|
$ |
667,346 |
|
| Other insurance
revenue |
|
2,033 |
|
|
— |
|
|
— |
|
|
2,033 |
|
| Net loss and loss
adjustment expenses ("loss and LAE") |
|
(138,561 |
) |
|
(353,836 |
) |
|
843 |
|
|
(491,554 |
) |
| Commission and other
acquisition expenses |
|
(46,112 |
) |
|
(152,792 |
) |
|
159 |
|
|
(198,745 |
) |
| General and
administrative expenses(4) |
|
(10,907 |
) |
|
(1,082 |
) |
|
— |
|
|
(11,989 |
) |
|
Underwriting (loss) income(5) |
|
$ |
(2,050 |
) |
|
$ |
(31,861 |
) |
|
$ |
1,002 |
|
|
$ |
(32,909 |
) |
| Reconciliation
to net income |
|
|
|
|
|
|
|
|
| Net investment income
and realized losses on investment |
|
|
|
|
|
|
|
43,899 |
|
| Interest and
amortization expenses |
|
|
|
|
|
|
|
(4,829 |
) |
| Amortization of
intangible assets |
|
|
|
|
|
|
|
(462 |
) |
| Foreign exchange
gains |
|
|
|
|
|
|
|
4,821 |
|
| Other general and
administrative expenses(4) |
|
|
|
|
|
|
|
(7,585 |
) |
| Income tax expense |
|
|
|
|
|
|
|
(255 |
) |
| Net
income |
|
|
|
|
|
|
|
$ |
2,680 |
|
| |
|
|
|
|
|
|
|
|
| Net loss and LAE
ratio(6) |
|
71.7 |
% |
|
74.4 |
% |
|
|
|
73.4 |
% |
| Commission and other
acquisition expense ratio(7) |
|
23.8 |
% |
|
32.1 |
% |
|
|
|
29.7 |
% |
| General and
administrative expense ratio(8) |
|
5.6 |
% |
|
0.2 |
% |
|
|
|
2.9 |
% |
| Expense Ratio(9) |
|
29.4 |
% |
|
32.3 |
% |
|
|
|
32.6 |
% |
|
Combined ratio(10) |
|
101.1 |
% |
|
106.7 |
% |
|
|
|
106.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| MAIDEN HOLDINGS, LTD. |
| SUPPLEMENTAL FINANCIAL DATA - SEGMENT
INFORMATION (Unaudited) |
| (in thousands of U.S. dollars) |
| |
|
|
|
|
|
|
|
|
|
For the Three Months Ended June 30, 2017 |
|
DiversifiedReinsurance |
|
AmTrustReinsurance |
|
Other |
|
Total |
| Gross premiums
written |
|
$ |
140,841 |
|
|
$ |
564,276 |
|
|
$ |
81 |
|
|
$ |
705,198 |
|
| Net premiums
written |
|
$ |
137,247 |
|
|
$ |
546,735 |
|
|
$ |
90 |
|
|
$ |
684,072 |
|
| Net premiums
earned |
|
$ |
204,219 |
|
|
$ |
506,816 |
|
|
$ |
90 |
|
|
$ |
711,125 |
|
| Other insurance
revenue |
|
1,547 |
|
|
— |
|
|
— |
|
|
1,547 |
|
| Net loss and LAE |
|
(176,837 |
) |
|
(350,561 |
) |
|
(1,222 |
) |
|
(528,620 |
) |
| Commission and other
acquisition expenses |
|
(46,989 |
) |
|
(163,055 |
) |
|
5 |
|
|
(210,039 |
) |
| General and
administrative expenses(4) |
|
(8,494 |
) |
|
(664 |
) |
|
— |
|
|
(9,158 |
) |
|
Underwriting loss(5) |
|
$ |
(26,554 |
) |
|
$ |
(7,464 |
) |
|
$ |
(1,127 |
) |
|
$ |
(35,145 |
) |
| Reconciliation
to net loss |
|
|
|
|
|
|
|
|
| Net investment income
and realized gains on investment |
|
|
|
|
|
|
|
42,084 |
|
| Interest and
amortization expenses |
|
|
|
|
|
|
|
(6,745 |
) |
| Accelerated
amortization of senior note issuance cost |
|
|
|
|
|
|
|
(2,809 |
) |
| Amortization of
intangible assets |
|
|
|
|
|
|
|
(533 |
) |
| Foreign exchange
losses |
|
|
|
|
|
|
|
(6,722 |
) |
| Other general and
administrative expenses(4) |
|
|
|
|
|
|
|
(6,188 |
) |
| Income tax expense |
|
|
|
|
|
|
|
(277 |
) |
| Net
loss |
|
|
|
|
|
|
|
$ |
(16,335 |
) |
| |
|
|
|
|
|
|
|
|
| Net loss and LAE
ratio(6) |
|
86.0 |
% |
|
69.2 |
% |
|
|
|
74.1 |
% |
| Commission and other
acquisition expense ratio(7) |
|
22.8 |
% |
|
32.2 |
% |
|
|
|
29.5 |
% |
| General and
administrative expense ratio(8) |
|
4.1 |
% |
|
0.1 |
% |
|
|
|
2.2 |
% |
| Expense Ratio(9) |
|
26.9 |
% |
|
32.3 |
% |
|
|
|
31.7 |
% |
|
Combined ratio(10) |
|
112.9 |
% |
|
101.5 |
% |
|
|
|
105.8 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| MAIDEN HOLDINGS, LTD. |
| SUPPLEMENTAL FINANCIAL DATA - SEGMENT
INFORMATION (Unaudited) |
| (in thousands of U.S. dollars) |
| |
|
|
|
|
|
|
|
|
|
For the Six Months Ended June 30, 2018 |
|
DiversifiedReinsurance |
|
AmTrustReinsurance |
|
Other |
|
Total |
| Gross premiums
written |
|
$ |
441,463 |
|
|
$ |
1,065,413 |
|
|
$ |
— |
|
|
$ |
1,506,876 |
|
| Net premiums
written |
|
$ |
429,231 |
|
|
$ |
1,065,691 |
|
|
$ |
— |
|
|
$ |
1,494,922 |
|
| Net premiums
earned |
|
$ |
385,631 |
|
|
$ |
967,147 |
|
|
$ |
— |
|
|
$ |
1,352,778 |
|
| Other insurance
revenue |
|
5,759 |
|
|
— |
|
|
— |
|
|
5,759 |
|
| Net loss and loss
adjustment expenses ("loss and LAE") |
|
(274,173 |
) |
|
(691,143 |
) |
|
438 |
|
|
(964,878 |
) |
| Commission and other
acquisition expenses |
|
(97,410 |
) |
|
(310,108 |
) |
|
159 |
|
|
(407,359 |
) |
| General and
administrative expenses(4) |
|
(21,026 |
) |
|
(2,002 |
) |
|
— |
|
|
(23,028 |
) |
|
Underwriting (loss) income(5) |
|
$ |
(1,219 |
) |
|
$ |
(36,106 |
) |
|
$ |
597 |
|
|
$ |
(36,728 |
) |
| Reconciliation
to net income |
|
|
|
|
|
|
|
|
| Net investment income
and realized losses on investment |
|
|
|
|
|
|
|
87,126 |
|
| Interest and
amortization expenses |
|
|
|
|
|
|
|
(9,658 |
) |
| Amortization of
intangible assets |
|
|
|
|
|
|
|
(924 |
) |
| Foreign exchange
gains |
|
|
|
|
|
|
|
2,414 |
|
| Other general and
administrative expenses(4) |
|
|
|
|
|
|
|
(16,496 |
) |
| Income tax expense |
|
|
|
|
|
|
|
(711 |
) |
| Net
income |
|
|
|
|
|
|
|
$ |
25,023 |
|
| |
|
|
|
|
|
|
|
|
| Net loss and LAE
ratio(6) |
|
70.0 |
% |
|
71.4 |
% |
|
|
|
71.0 |
% |
| Commission and other
acquisition expense ratio(7) |
|
24.9 |
% |
|
32.1 |
% |
|
|
|
30.0 |
% |
| General and
administrative expense ratio(8) |
|
5.4 |
% |
|
0.2 |
% |
|
|
|
2.9 |
% |
| Expense Ratio(9) |
|
30.3 |
% |
|
32.3 |
% |
|
|
|
32.9 |
% |
|
Combined ratio(10) |
|
100.3 |
% |
|
103.7 |
% |
|
|
|
103.9 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| MAIDEN HOLDINGS, LTD. |
| SUPPLEMENTAL FINANCIAL DATA - SEGMENT
INFORMATION (Unaudited) |
| (in thousands of U.S. dollars) |
| |
|
|
|
|
|
|
|
|
|
For the Six Months Ended June 30, 2017 |
|
DiversifiedReinsurance |
|
AmTrustReinsurance |
|
Other |
|
Total |
| Gross premiums
written |
|
$ |
472,886 |
|
|
$ |
1,155,658 |
|
|
$ |
81 |
|
|
$ |
1,628,625 |
|
| Net premiums
written |
|
$ |
464,743 |
|
|
$ |
1,119,787 |
|
|
$ |
90 |
|
|
$ |
1,584,620 |
|
| Net premiums
earned |
|
$ |
406,061 |
|
|
$ |
1,014,458 |
|
|
$ |
90 |
|
|
$ |
1,420,609 |
|
| Other insurance
revenue |
|
5,328 |
|
|
— |
|
|
— |
|
|
5,328 |
|
| Net loss and LAE |
|
(315,486 |
) |
|
(692,192 |
) |
|
(1,511 |
) |
|
(1,009,189 |
) |
| Commission and other
acquisition expenses |
|
(104,934 |
) |
|
(327,139 |
) |
|
5 |
|
|
(432,068 |
) |
| General and
administrative expenses(4) |
|
(17,224 |
) |
|
(1,469 |
) |
|
— |
|
|
(18,693 |
) |
|
Underwriting loss(5) |
|
$ |
(26,255 |
) |
|
$ |
(6,342 |
) |
|
$ |
(1,416 |
) |
|
$ |
(34,013 |
) |
| Reconciliation
to net income |
|
|
|
|
|
|
|
|
| Net investment income
and realized gains on investment |
|
|
|
|
|
|
|
85,126 |
|
| Interest and
amortization expenses |
|
|
|
|
|
|
|
(13,601 |
) |
| Accelerated
amortization of senior note issuance cost |
|
|
|
|
|
|
|
(2,809 |
) |
| Amortization of
intangible assets |
|
|
|
|
|
|
|
(1,066 |
) |
| Foreign exchange
losses |
|
|
|
|
|
|
|
(8,643 |
) |
| Other general and
administrative expenses(4) |
|
|
|
|
|
|
|
(14,067 |
) |
| Income tax expense |
|
|
|
|
|
|
|
(761 |
) |
| Net
income |
|
|
|
|
|
|
|
$ |
10,166 |
|
| |
|
|
|
|
|
|
|
|
| Net loss and LAE
ratio(6) |
|
76.7 |
% |
|
68.3 |
% |
|
|
|
70.8 |
% |
| Commission and other
acquisition expense ratio(7) |
|
25.5 |
% |
|
32.2 |
% |
|
|
|
30.3 |
% |
| General and
administrative expense ratio(8) |
|
4.2 |
% |
|
0.1 |
% |
|
|
|
2.3 |
% |
| Expense Ratio(9) |
|
29.7 |
% |
|
32.3 |
% |
|
|
|
32.6 |
% |
|
Combined ratio(10) |
|
106.4 |
% |
|
100.6 |
% |
|
|
|
103.4 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| MAIDEN HOLDINGS, LTD. |
| NON-GAAP FINANCIAL MEASURES
(Unaudited) |
| (In thousands of U.S. dollars, except share
and per share data) |
| |
|
|
|
|
| |
|
For the Three Months Ended June
30, |
|
For the Six Months Ended June 30, |
| |
|
2018 |
|
2017 |
|
2018 |
|
2017 |
| Non-GAAP
operating (loss) earnings attributable to Maiden common
shareholders(11) |
|
$ |
(10,652 |
) |
|
$ |
(12,450 |
) |
|
$ |
6,166 |
|
|
$ |
10,188 |
|
| Non-GAAP basic
operating (loss) earnings per common share attributable to Maiden
shareholders |
|
$ |
(0.13 |
) |
|
$ |
(0.14 |
) |
|
$ |
0.07 |
|
|
$ |
0.12 |
|
| Non-GAAP
diluted operating (loss) earnings per common share attributable to
Maiden shareholders(15) |
|
$ |
(0.13 |
) |
|
$ |
(0.14 |
) |
|
$ |
0.07 |
|
|
$ |
0.12 |
|
| Annualized
non-GAAP operating return on average common
equity(12) |
|
(6.4 |
)% |
|
(4.8 |
)% |
|
1.8 |
% |
|
2.0 |
% |
| Reconciliation: |
|
|
|
|
|
|
|
|
| Net (loss) income
attributable to Maiden common shareholders |
|
$ |
(5,913 |
) |
|
$ |
(22,359 |
) |
|
$ |
7,814 |
|
|
$ |
(1,869 |
) |
| Add (subtract): |
|
|
|
|
|
|
|
|
| Net
realized losses (gains) on investment |
|
414 |
|
|
(1,572 |
) |
|
57 |
|
|
(2,457 |
) |
| Foreign
exchange (gains) losses |
|
(4,821 |
) |
|
6,722 |
|
|
(2,414 |
) |
|
8,643 |
|
|
Amortization of intangible assets |
|
462 |
|
|
533 |
|
|
924 |
|
|
1,066 |
|
| Divested
E&S business and NGHC run-off |
|
(1,002 |
) |
|
1,127 |
|
|
(597 |
) |
|
1,416 |
|
|
Accelerated amortization of senior note issuance cost |
|
— |
|
|
2,809 |
|
|
— |
|
|
2,809 |
|
| Non-cash
deferred tax expense |
|
208 |
|
|
290 |
|
|
382 |
|
|
580 |
|
| Non-GAAP
operating (loss) earnings attributable to Maiden common
shareholders(11) |
|
$ |
(10,652 |
) |
|
$ |
(12,450 |
) |
|
$ |
6,166 |
|
|
$ |
10,188 |
|
| |
|
|
|
|
|
|
|
|
| Weighted average number
of common shares - basic |
|
83,126,204 |
|
|
86,564,794 |
|
|
83,083,545 |
|
|
86,458,413 |
|
| Adjusted weighted
average number of common shares and assumed conversions -
diluted(15) |
|
83,126,204 |
|
|
86,564,794 |
|
|
83,373,285 |
|
|
87,384,378 |
|
| Reconciliation: |
|
|
|
|
|
|
|
|
| Diluted (loss) earnings
per common share attributable to Maiden shareholders |
|
$ |
(0.07 |
) |
|
$ |
(0.26 |
) |
|
$ |
0.09 |
|
|
$ |
(0.02 |
) |
| Add (subtract): |
|
|
|
|
|
|
|
|
| Net
realized losses (gains) on investment |
|
— |
|
|
(0.02 |
) |
|
— |
|
|
(0.03 |
) |
| Foreign
exchange (gains) losses |
|
(0.06 |
) |
|
0.08 |
|
|
(0.03 |
) |
|
0.10 |
|
|
Amortization of intangible assets |
|
0.01 |
|
|
0.01 |
|
|
0.01 |
|
|
0.01 |
|
| Divested
E&S business and NGHC run-off |
|
(0.01 |
) |
|
0.02 |
|
|
(0.01 |
) |
|
0.02 |
|
|
Accelerated amortization of senior note issuance cost |
|
— |
|
|
0.03 |
|
|
— |
|
|
0.03 |
|
| Non-cash
deferred tax expense |
|
— |
|
|
— |
|
|
0.01 |
|
|
0.01 |
|
| Non-GAAP
diluted operating (loss) earnings per common share attributable to
Maiden shareholders |
|
$ |
(0.13 |
) |
|
$ |
(0.14 |
) |
|
$ |
0.07 |
|
|
$ |
0.12 |
|
| |
|
|
|
|
|
|
|
|
| Reconciliation
of net income (loss) attributable to Maiden to non-GAAP income from
operations: |
|
|
|
|
|
|
|
|
| Net income (loss)
attributable to Maiden |
|
$ |
2,633 |
|
|
$ |
(16,326 |
) |
|
$ |
24,905 |
|
|
$ |
10,197 |
|
| Add (subtract): |
|
|
|
|
|
|
|
|
| Foreign
exchange (gains) losses |
|
(4,821 |
) |
|
6,722 |
|
|
(2,414 |
) |
|
8,643 |
|
|
Amortization of intangible assets |
|
462 |
|
|
533 |
|
|
924 |
|
|
1,066 |
|
| Interest
and amortization expenses |
|
4,829 |
|
|
6,745 |
|
|
9,658 |
|
|
13,601 |
|
|
Accelerated amortization of senior note issuance cost |
|
— |
|
|
2,809 |
|
|
— |
|
|
2,809 |
|
| Income
tax expense |
|
255 |
|
|
277 |
|
|
711 |
|
|
761 |
|
| Net
income (loss) attributable to noncontrolling interest |
|
47 |
|
|
(9 |
) |
|
118 |
|
|
(31 |
) |
| Non-GAAP income
from operations(2) |
|
$ |
3,405 |
|
|
$ |
751 |
|
|
$ |
33,902 |
|
|
$ |
37,046 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
| MAIDEN HOLDINGS, LTD. |
| NON-GAAP FINANCIAL MEASURES
(Unaudited) |
| (In thousands of U.S. dollars, except share and
per share data) |
| |
|
|
|
| |
June 30, 2018 |
|
December 31, 2017 |
| Investable
assets: |
|
|
|
| Total investments |
$ |
5,011,952 |
|
|
$ |
5,148,771 |
|
| Cash and cash
equivalents |
72,102 |
|
|
67,919 |
|
| Restricted cash and
cash equivalents |
154,677 |
|
|
123,584 |
|
| Loan to related
party |
167,975 |
|
|
167,975 |
|
| Total investable
assets(13) |
$ |
5,406,706 |
|
|
$ |
5,508,249 |
|
| |
|
|
|
| |
June 30, 2018 |
|
December 31, 2017 |
|
Capital: |
|
|
|
| Preference shares |
$ |
465,000 |
|
|
$ |
465,000 |
|
| Common shareholders'
equity |
640,742 |
|
|
767,174 |
|
| Total Maiden
shareholders' equity |
1,105,742 |
|
|
1,232,174 |
|
| 2016 Senior Notes |
110,000 |
|
|
110,000 |
|
| 2013 Senior Notes |
152,500 |
|
|
152,500 |
|
| Total capital
resources(14) |
$ |
1,368,242 |
|
|
$ |
1,494,674 |
|
| |
|
|
|
|
|
|
|
| |
|
|
| (1) |
|
Book
value per common share is calculated using Maiden common
shareholders’ equity (shareholders' equity excluding the aggregate
liquidation value of our preference shares) divided by the number
of common shares outstanding. |
| |
|
|
| (2) |
|
Non-GAAP
income from operations is a non-GAAP financial measure defined by
the Company as net income (loss) 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
net income or loss attributable to noncontrolling interest and
should not be considered as an alternative to net income
(loss). The Company’s management believes that non-GAAP
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 non-GAAP income from operations may not be
comparable to similarly titled measures used by other
companies. |
| |
|
|
| (3) |
|
Dividends on preference shares consist of $3,094 and $6,188 paid to
Preference shares - Series A for the three and six months ended
June 30, 2018 and 2017, respectively, $2,939 and $5,878 paid
to Preference shares - Series C for the three and six months ended
June 30, 2018 and 2017, respectively and $2,513 and $5,025
(2017 - $0) paid to Preference shares - Series D for the three and
six months ended June 30, 2018, respectively. |
| |
|
|
| (4) |
|
Underwriting related general and administrative expenses is a
non-GAAP measure and includes expenses which are segregated for
analytical purposes as a component of underwriting income. |
| |
|
|
| (5) |
|
Underwriting (loss) income is a non-GAAP measure and is calculated
as net premiums earned plus other insurance revenue less net loss
and LAE, commission and other acquisition expenses and general and
administrative expenses directly related to underwriting
activities. Management believes that this measure is important in
evaluating the underwriting performance of the Company and its
segments. This measure is also a useful tool to measure the
profitability of the Company separately from the investment results
and is also a widely used performance indicator in the insurance
industry. |
| |
|
|
| (6) |
|
Calculated by dividing net loss and LAE by the sum of net premiums
earned and other insurance revenue. |
| |
|
|
| (7) |
|
Calculated by dividing commission and other acquisition expenses by
the sum of net premiums earned and other insurance revenue. |
| |
|
|
| (8) |
|
Calculated by dividing general and administrative expenses by the
sum of net premiums earned and other insurance revenue. |
| |
|
|
| (9) |
|
Calculated by adding together the commission and other acquisition
expense ratio and the general and administrative expense
ratio. |
| |
|
|
| (10) |
|
Calculated by adding together the net loss and LAE ratio and the
expense ratio. |
| |
|
|
| (11) |
|
Non-GAAP
operating (loss) earnings is a non-GAAP financial measure defined
by the Company as net (loss) income attributable to Maiden common
shareholders excluding realized 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 (loss). The Company's management believes
that non-GAAP operating (loss) earnings is a useful indicator of
trends in the Company's underlying operations. The Company's
measure of non-GAAP operating (loss) earnings may not be comparable
to similarly titled measures used by other companies. |
| |
|
|
| (12) |
|
Non-GAAP operating return on average common equity is a non-GAAP
financial measure. Management uses non-GAAP 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 non-GAAP operating (loss) earnings attributable to
Maiden common shareholders divided by average Maiden common
shareholders' equity. |
| |
|
|
| (13) |
|
Investable assets is the total of the Company's investments, cash
and cash equivalents and loan to a related party. |
| |
|
|
| (14) |
|
Total
capital resources is the sum of the Company's principal amount of
debt and Maiden shareholders' equity. |
| |
|
|
| (15) |
|
During a
period of loss, the basic weighted average common shares
outstanding is used in the denominator of the diluted loss per
common share computation as the effect of including potential
dilutive shares would be anti-dilutive. |
| |
|
|
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