Maiden Holdings, Ltd. Completes Acquisition of GMAC International Insurance Services, Ltd. Reinsurance Businesses
November 30 2010 - 7:35PM
Maiden Holdings, Ltd. ("Maiden") (Nasdaq:MHLD) today announced that
it has completed its acquisition of the majority of the
reinsurance-related infrastructure, assets and liabilities of
U.K.-based GMAC International Insurance Services, Ltd. ("GMAC
International Insurance"), including renewal rights on nearly $100
million of predominantly personal auto quota share reinsurance as
well as the supporting business development subsidiaries in Europe.
"We are excited about the opportunities that the GMAC
International Insurance transaction provides as we continue to
build out and enhance our disciplined, low-volatility,
relationship-oriented model," said Art Raschbaum, President and CEO
of Maiden. "This transaction achieves our goal of expanding the
existing Maiden model outside the U.S. and Bermuda, and positions
us well to begin to serve the non-catastrophic reinsurance needs of
property and casualty insurance clients across Europe and in other
select markets. We welcome the talented team there, led by Ron
Judd, and are confident in our ability to profitably grow this
unique auto-centric reinsurance services platform and continue to
generate attractive returns for our shareholders."
The transaction includes the assumption of more than $100
million of loss reserves and net unearned premiums as well as the
corresponding assets, and was funded through existing cash and
investments. GMAC International Insurance primarily focuses on
providing branded auto and auto-related insurance products through
its insurer partners to retail customers in the European Union and
other global markets. Maiden expects the transaction to be
accretive to 2011 earnings, and to generally perform within its
overall stated targets of a 96% combined ratio and medium-term ROE
target of 15%.
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 September 30, 2010, the company had $2.8 billion in
assets and shareholders' equity of $758 million.
The Maiden Holdings, Ltd. logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=5006
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 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, decreases
in existing and new client projected premiums, accuracy in
projecting loss reserves, the impact of competition and pricing
environments, changes in the demand for the Company's products, the
effect of general economic conditions, adverse state and federal
legislation, regulations and regulatory investigations into
industry practices, developments relating to existing agreements,
heightened competition, changes in pricing environments and changes
in asset valuations. The Company undertakes no obligation to
publicly update any forward-looking statements, except as may be
required by law. 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.
CONTACT: Maiden Holdings, Ltd.
Investor Contact:
Ellen Taylor
856.359.2573
irelations@maiden.bm
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