Financial Highlights
- First quarter 2011 net income and operating income grew
42.6% and 22.4% compared to same period in 2010
- Net income of $19.3 million or $0.27 per share for the
quarter compared with $13.6 million or $0.19 per share in first
quarter of 2010
- Net operating earnings(1) of $19.8 million or $0.27 per
share compared with $16.2 million or $0.23 per share in first
quarter of 2010
- Net written premium of $449.5 million in the first
quarter up $138.2 million from $311.3 million in the first quarter
2010
- Combined ratio of 97.0% compared to 97.1% in the first
quarter 2010
- Net investment income of $19.1 million up 8.9% from
first quarter 2010
- Annualized return on equity of 10.3% and operating
return on equity(1) of 10.6% in the quarter
- Minimal, if any, losses expected from first quarter
2011 global catastrophe events
- Total assets of $3.1 billion increased 3.0% from
year-end 2010
Maiden Holdings, Ltd. (Nasdaq:MHLD) today reported first quarter
2011 net income of $19.3 million, up 42.6% from $13.6 million in
the first quarter of 2010. Earnings per diluted share of $0.27
increased 42.1% from $0.19 in the first quarter of 2010. Operating
earnings(1) for the quarter totaled $19.8 million, or $0.27 per
diluted share, compared with $16.2 million, or $0.23 per diluted
share in the first quarter of 2010.
"At Maiden, we generated solid underwriting, net income, and
operating performance while continuing to increase our book value,"
said Art Raschbaum, President and CEO of Maiden Holdings Ltd.
"Importantly, the quarter reflects continuing success in
implementing our business model of delivering stable results for
our shareholders as we remain focused on serving the non
catastrophe needs of regional and specialty insurers. As we
communicated earlier this year, Maiden expects minimal, if any,
losses from the significant global catastrophe events of the first
quarter of 2011."
Raschbaum added, "Our first quarter reflects the completion of
the first full year of our strategic quota share with ACAC and our
first full quarter from our newly acquired international
operations, both of which performed in line with our expectations.
We believe we are well positioned to continue to deliver long-term
value for our shareholders."
Shareholders' equity of $769.7 million and book value per share
of $10.67 at March 31, 2011 both rose 2.6% from year end 2010.
First Quarter 2011 Results:
Net written premium totaled $449.5 million compared with $311.3
million in the first quarter of 2010. Net earned premium of $346.5
million increased 31.3% from $263.9 million for the same period
last year.
Net investment income of $19.1 million grew 8.9% from $17.6
million in the first quarter of 2010.
Loss and loss adjustment expenses of $221.2 million rose $50.9
million from $170.3 million in the first quarter of 2010. Results
reflected a loss ratio of 63.0% compared with 64.5% for the same
period a year ago.
Commission and other acquisition expenses together with general
and administrative expenses of $119.4 million increased $33.4
million from the year ago quarter and reflected a total expense
ratio of 34.0% compared with 32.6% in 2010. General and
administrative expenses for the quarter totaled $12.3 million
compared with $8.6 million in the first quarter of 2010.
These results reflected a general and administrative expense
ratio of 3.5% compared to 3.3% in the first quarter of 2010.
The combined ratio for the first quarter totaled
97.0% compared with 97.1% in the first quarter of 2010.
Income from operations(2) of $29.8 million
increased 16.6%, from $25.6 million in the first quarter of
2010.
Total assets of $3.1 billion at March 31, 2011 increased from
$3.0 billion at year end 2010. Total investable assets of $2.3
billion(3), were largely unchanged from year end
2010.
During the first quarter of 2011, the Board of Directors
declared a dividend of $0.07 per share.
(1)(2)(3)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.
Conference Call
CEO Art Raschbaum and CFO John Marshaleck will review these
results via teleconference and live audio webcast on Thursday, May
5, 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), May 5, 2011 through midnight on May
12, 2011. 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: 41251935; or access
http://www.maiden.bm/presentations_conferences.
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, 2011, the Company had $3.1 billion in
assets and shareholders' equity of $769.7 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 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, 2010 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) |
|
|
March 31, 2011
(Unaudited) |
December 31, 2010
(Audited) |
Assets |
|
|
Fixed maturities, available-for-sale, at fair
value (amortized cost $1,803,375; $1,819,775) |
$ 1,861,299 |
$ 1,874,433 |
Other investments, at fair value (cost
$5,993; $5,751) |
6,322 |
5,847 |
Total investments |
1,867,621 |
1,880,280 |
Cash and cash equivalents |
97,340 |
96,151 |
Restricted cash and cash equivalents |
52,764 |
89,756 |
Accrued investment income |
12,645 |
14,091 |
Reinsurance balances receivable,
net |
315,349 |
226,333 |
Funds withheld |
164,533 |
152,713 |
Prepaid reinsurance premiums |
31,488 |
28,992 |
Reinsurance recoverable on unpaid losses |
11,435 |
6,656 |
Loan to related party |
167,975 |
167,975 |
Deferred commission and other acquisition
costs |
234,253 |
203,631 |
Goodwill and intangible assets, net |
102,543 |
103,905 |
Other assets |
14,168 |
12,079 |
Total Assets |
$ 3,072,114 |
$ 2,982,562 |
Liabilities
and Equity |
|
|
Liabilities |
|
|
Reserve for loss and loss adjustment
expenses |
$ 1,254,850 |
$ 1,226,773 |
Unearned premiums |
764,264 |
657,556 |
Accrued expenses and other liabilities |
67,815 |
56,368 |
Securities sold under agreements to
repurchase, at contract value |
-- |
76,225 |
Junior subordinated debt |
215,209 |
215,191 |
Total Liabilities |
2,302,138 |
2,232,113 |
|
|
|
Equity: |
|
|
Common shares |
731 |
731 |
Additional paid-in capital |
577,478 |
577,135 |
Accumulated other comprehensive
income |
59,204 |
54,334 |
Retained earnings |
136,070 |
121,775 |
Treasury stock, at cost |
(3,801) |
(3,801) |
Total Maiden Shareholders'
Equity |
769,682 |
750,174 |
Noncontrolling interest in
subsidiary |
294 |
275 |
Total Equity |
769,976 |
750,449 |
Total Liabilities and
Equity |
$ 3,072,114 |
$ 2,982,562 |
|
|
|
Book value per share |
$ 10.67 |
$ 10.40 |
|
|
|
Common shares
outstanding |
72,107,194 |
72,107,100 |
|
Maiden Holdings,
Ltd. |
Income
Statement |
(in thousands (000's),
except per share data) |
(Unaudited) |
|
|
|
|
For the Three Months Ended March
31, 2011 |
For the Three Months Ended March
31, 2010 |
Revenues: |
|
|
Gross premiums written |
$ 470,777 |
$ 327,382 |
|
|
|
Net premiums written |
$ 449,500 |
$ 311,291 |
Change in unearned premiums |
(102,965) |
(47,362) |
Net premiums earned |
346,535 |
263,929 |
Other insurance revenue |
4,655 |
-- |
Net investment income |
19,141 |
17,581 |
Net realized and unrealized investment gains
(losses) |
47 |
312 |
Total revenues |
370,378 |
281,822 |
Expenses: |
|
|
Net loss and loss adjustment
expenses |
221,182 |
170,285 |
Commission and other acquisition
expenses |
107,072 |
77,396 |
General and administrative expenses |
12,293 |
8,552 |
Total expenses |
340,547 |
256,233 |
|
|
|
Income from operations
(2) |
29,831 |
25,589 |
|
|
|
Other expense |
|
|
Amortization of intangible assets |
(1,258) |
(1,452) |
Foreign exchange gains (losses) |
1,062 |
(1,153) |
Subordinated debt interest expense |
(9,118) |
(9,115) |
|
(9,314) |
(11,720) |
|
|
|
Income before income
taxes |
20,517 |
13,869 |
Income taxes: |
|
|
Current tax expense |
885 |
-- |
Deferred tax expense |
287 |
300 |
Income tax expense |
1,172 |
300 |
|
|
|
Net income |
$ 19,345 |
$ 13,569 |
Less: Income attributable to
noncontrolling interest |
(3) |
-- |
Net income attributable to
Maiden |
19,342 |
13,569 |
Operating earnings (1) |
$ 19,778 |
$ 16,162 |
|
|
|
Basic earnings per common share
attributable to Maiden shareholders |
$ 0.27 |
$ 0.19 |
Diluted earnings per common share
attributable to Maiden shareholders |
$ 0.27 |
$ 0.19 |
Basic operating earnings per common
share attributable to Maiden shareholders |
$ 0.27 |
$ 0.23 |
Diluted operating earnings per common
share attributable to Maiden shareholders |
$ 0.27 |
$ 0.23 |
|
|
|
Dividends declared per common
share |
$ 0.07 |
$ 0.065 |
|
|
|
Weighted average number of
basic shares outstanding |
72,107,194 |
70,291,312 |
Weighted average number of diluted
shares outstanding |
72,773,914 |
70,776,794 |
|
|
|
Net Loss and loss adjustment expense
ratio* |
63.0% |
64.5% |
Commission and other acquisition
expense ratio** |
30.5% |
29.3% |
General and administrative
expense ratio*** |
3.5% |
3.3% |
Combined ratio**** |
97.0% |
97.1% |
Annualized return on
equity |
10.3% |
7.9% |
Annualized return on equity on
operating earnings |
10.6% |
9.4% |
|
Maiden Holdings,
Ltd. |
Non - GAAP Financial
Measure |
(in thousands (000's),
except per share data) |
(Unaudited) |
|
|
|
|
For the Three Months Ended March
31, 2011 |
For the Three Months Ended March
31, 2010 |
|
|
|
Reconciliation of net income to net
operating earnings: |
|
|
Net income attributable to Maiden |
$ 19,342 |
$ 13,569 |
Add (subtract) |
|
|
Net realized and unrealized investment
(gains) losses |
(47) |
(312) |
Foreign exchange (gains) losses |
(1,062) |
1,153 |
Amortization of intangible assets |
1,258 |
1,452 |
Non-cash deferred tax charge |
287 |
300 |
Operating earnings attributable to Maiden
(1) |
$ 19,778 |
$ 16,162 |
|
|
|
Operating earnings per common share
attributable to Maiden shareholders: |
|
|
|
|
|
Basic earnings per common share attributable
to Maiden shareholders |
$ 0.27 |
$ 0.23 |
Diluted earnings per common share
attributable to Maiden shareholders |
$ 0.27 |
$ 0.23 |
|
|
|
Reconciliation of net income to
income from operations: |
|
|
Net income attributable to Maiden |
$ 19,342 |
$ 13,569 |
Add (subtract) |
|
|
Foreign exchange (gains) losses |
(1,062) |
1,153 |
Amortization of intangible assets |
1,258 |
1,452 |
Subordinated debt interest expense |
9,118 |
9,115 |
Income tax expense |
1,172 |
300 |
Income attributable to noncontrolling
interest |
3 |
-- |
Income from operations attributable to Maiden
(2) |
$ 29,831 |
$ 25,589 |
|
|
|
|
March 31, 2011 |
December 31,
2010 |
Investable assets: |
|
|
Total investments |
$ 1,867,621 |
$ 1,880,280 |
Cash and cash equivalents |
97,340 |
96,151 |
Restricted cash and cash equivalents |
52,764 |
89,756 |
Funds withheld (3) |
122,100 |
119,000 |
Loan to related party |
167,975 |
167,975 |
Total investable assets (3) |
$ 2,307,800 |
$ 2,353,162 |
|
|
|
|
|
|
(1) Net
operating earnings is a non-GAAP financial measure defined by the
Company as net income attributable to Maiden excluding realized
investment gains and losses, foreign exchange gains and losses,
amortization of intangible assets 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 attributable to Maiden excluding foreign
exchange gains and losses, amortization of intangible assets,
subordinated debt interest expense, income tax expense and income
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, loan to a related party and the portion of
the funds withheld balance that comprises fixed maturity securities
and cash and cash equivalents. |
Maiden Holdings,
Ltd. |
Supplemental Financial
Data - Segment Information |
(in thousands
(000's)) |
(Unaudited) |
|
|
|
|
|
For the Three Months Ended March 31,
2011 |
Diversified
Reinsurance |
AmTrust Quota
Share |
ACAC Quota
Share |
Total |
Net premiums written |
$ 258,818 |
$ 126,714 |
$ 63,968 |
$ 449,500 |
Net premiums earned |
174,234 |
114,474 |
57,827 |
346,535 |
Other insurance revenue |
4,655 |
-- |
-- |
4,655 |
Net losses and loss expenses |
(110,345) |
(73,539) |
(37,298) |
(221,182) |
Commissions and other acquisition costs |
(51,420) |
(37,237) |
(18,415) |
(107,072) |
General and administrative expenses |
(8,028) |
(668) |
(543) |
(9,239) |
Underwriting income |
$ 9,096 |
$ 3,030 |
$ 1,571 |
$ 13,697 |
|
|
|
|
|
Reconciliation to net
income |
|
|
|
|
Net investment income and realized and
unrealized investment gains (losses) |
|
|
|
19,188 |
Amortization of intangible assets |
|
|
|
(1,258) |
Foreign exchange gains |
|
|
|
1,062 |
Subordinated debt interest expense |
|
|
|
(9,118) |
Other general and administrative
expenses |
|
|
|
(3,054) |
|
|
|
|
|
Net Income before income
taxes |
|
|
|
$ 20,517 |
|
|
|
|
|
Net loss and loss expense ratio* |
61.7% |
64.2% |
64.5% |
63.0% |
Acquisition cost ratio** |
28.7% |
32.5% |
31.8% |
30.5% |
General and administrative expense
ratio*** |
4.5% |
0.7% |
1.0% |
3.5% |
Combined ratio**** |
94.9% |
97.4% |
97.3% |
97.0% |
|
|
|
|
|
For the Three Months Ended March 31,
2010 |
Diversified
Reinsurance |
AmTrust Quota
Share |
ACAC Quota
Share |
Total |
Net premiums written |
$ 167,914 |
$ 121,556 |
$ 21,821 |
$ 311,291 |
Net premiums earned |
151,180 |
110,659 |
2,090 |
263,929 |
Net losses and loss expenses |
(99,417) |
(69,562) |
(1,306) |
(170,285) |
Commissions and other acquisition costs |
(40,514) |
(36,148) |
(734) |
(77,396) |
General and administrative expenses |
(5,872) |
(474) |
-- |
(6,346) |
Underwriting income |
$ 5,377 |
$ 4,475 |
$ 50 |
$ 9,902 |
|
|
|
|
|
Reconciliation to net
income |
|
|
|
|
Net investment income and realized investment
gains (losses) |
|
|
|
17,893 |
Amortization of intangible assets |
|
|
|
(1,452) |
Foreign exchange losses |
|
|
|
(1,153) |
Subordinated debt interest expense |
|
|
|
(9,115) |
Other general and administrative
expenses |
|
|
|
(2,206) |
|
|
|
|
|
Net Income before income
taxes |
|
|
|
$ 13,869 |
|
|
|
|
|
Net loss and loss expense ratio* |
65.7% |
62.9% |
62.5% |
64.5% |
Acquisition cost ratio** |
26.8% |
32.7% |
35.1% |
29.3% |
General and administrative expense
ratio*** |
3.9% |
0.4% |
-- |
3.3% |
Combined ratio**** |
96.4% |
96.0% |
97.6% |
97.1% |
|
|
|
|
|
* Calculated by dividing
net losses and loss expenses by net earned premium and other
insurance revenue. |
** Calculated by dividing
commission and other acquisition expenses by net earned premium and
other insurance revenue. |
*** Calculated by dividing
general and administrative expenses by net earned premium and other
insurance revenue. |
**** Calculated by adding
together net loss and loss expense ratio, acquisition cost ratio
and general and administrative expense ratio. |
CONTACT: Maiden Holdings, Ltd.
John Marshaleck
441.298.4902
irelations@maiden.bm
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