Second Quarter 2012 Highlights
- Book Value per Share(4) of $11.41, up 7.2% versus
year-end 2011 and up 1.7% versus March 31, 2012
- Annualized operating return on equity(1) of 9.7%
compared to 5.9% in the second quarter last year
- Net operating earnings (1) of $19.7 million, or $0.27
per diluted share compared with $11.2 million, or $0.15 per diluted
share in the second quarter of 2011
- Total investments increased 8.8% in the second quarter
of 2012 to $2.4 billion
- Net investment income rose to $20.1 million or an
increase of 1.3% compared to the second quarter of
2011
- Net premiums written decreased 5.7% to $412.0 million
versus the same period last year; excluding one-time $45.9 million
unearned premium transfer in the second quarter of 2011, net
premiums written increased 5.4%
- Combined ratio of 97.9% compared to
99.8% in the second quarter of 2011
Maiden Holdings, Ltd. (Nasdaq:MHLD) today reported second quarter
2012 net operating earnings(1) of $19.7 million, or $0.27 per
diluted share compared with $11.2 million, or $0.15 per diluted
share in the comparative quarter in 2011. Net income
totaled $14.5 million, or $0.20 per diluted share compared with a
net loss of $24.4 million or a loss of $0.34 per diluted share in
the second quarter of 2011.
Commenting on the Company's earnings, Art Raschbaum, Chief
Executive Officer of Maiden Holdings, said: "The first half of 2012
further validates Maiden's lower volatility business model, as we
continue to support the non-catastrophe reinsurance needs of
regional and specialty insurers. Prudent risk selection benefited
our results, which were not adversely impacted by the widespread
severe weather activity in the U.S. and Europe during the second
quarter. Investment income increased along with growth in our
invested assets as we found opportunities to put cash to work
without significantly extending duration or dampening the high
credit quality of our investment portfolio. On the
underwriting side, we are receiving indications from clients of
rate increases in lines of business such as workers' compensation,
personal auto, commercial auto and homeowners. As anticipated,
premium growth has moderated, largely reflecting the impact of a
non-recurring unearned premium transfer in the second quarter of
2011 and historical seasonality, but our year to date written
premium growth remains robust."
Results for the three months ended June 30,
2012
Net operating earnings(1) for the second quarter of 2012 were
$19.7 million, or $0.27 per diluted share compared with $11.2
million, or $0.15 per diluted share in the comparative quarter in
2011. Net income was $14.5 million, or $0.20 per diluted share
compared with a net loss of $24.4 million or a loss of $0.34 per
diluted share in the second quarter of 2011. In the
comparative second quarter of 2011, Maiden's net income was
impacted by a number of non-operating expenses, including charges
related to the repurchase of junior subordinated debt with proceeds
from the June 2011 Senior Notes offering. Second
quarter 2011 results included $15.1 million of junior subordinated
debt repurchase expenses and $20.3 million of accelerated
amortization of subordinated debt discount and issuance costs. The
comparative 2011 financial results were also impacted by $9.5
million in losses related to thunderstorm and tornado activity
across the U.S. in the second quarter, net of the Company's
quarterly provisions for normalized catastrophe activity.
Net premiums written of $412.0 million in the second quarter of
2012 decreased 5.7% compared to the second quarter of
2011. The second quarter of 2011 included a one-time unearned
premium transfer of $45.9 million associated with the AmTrust
European hospital liability program. Absent that transfer,
year on year net written premium increased 5.4% or $20.9 million.
By segment, the Diversified Reinsurance segment net premiums
written decreased by 8.9% versus the second quarter of 2011; the
AmTrust Quota Share Reinsurance segment net premiums written
decreased by 9.6% compared to the second quarter of 2011 (excluding
the impact of the one-time unearned premium transfer of $45.9
million, the net premiums written in the AmTrust Quota Share
Reinsurance segment would have increased 14.7% compared to the
second quarter of 2011); net premiums written from the ACAC Quota
Share increased by 15.8% to $72.4 million compared to the same
period in 2011.
Net premiums earned of $437.1 million increased 18.9%, or $69.3
million compared to the second quarter of 2011. Earned
premiums increased across all business segments with Diversified
Reinsurance up 16.9%, AmTrust Quota Share Reinsurance up 23.1% and
ACAC Quota Share up 14.7%.
Net investment income of $20.1 million increased 1.3% compared
to the second quarter of 2011. Compared to the first quarter
of 2012, net investment income increased 8.9% as the Company was
able to deploy its cash position which had grown to $273.8 million
at the end of the first quarter of 2012 due to cash generated from
the business and $96.6 million in proceeds from the issuance of 30
year 8.0% senior notes at the end of the first
quarter. Total investments increased $372.9 million to
$2.4 billion or 18.4% versus
December 31, 2011. The average yield on the
fixed income portfolio (excluding cash) is 3.74% with an average
duration of 3.40 years.
Net loss and loss adjustment expenses of $300.4 million were up
$49.8 million compared to the second quarter of
2011. The loss ratio(7) increased by 0.7 percentage
points to 68.4% versus the second quarter of 2011.
Commission and other acquisition expenses together with general
and administrative expenses of $129.9 million increased $11.2
million from the year ago quarter, while the total expense ratio
improved to 29.5% in the second quarter of 2012 compared with 32.1%
in the same quarter last year. General and administrative
expenses for the quarter totaled $15.2 million compared with $12.8
million in the second quarter of 2011. The general and
administrative expense ratio(9) improved to 3.4% compared to 3.5%
in the second quarter of 2011.
The combined ratio(10) for the second quarter totaled 97.9%
compared with 99.8% in the second quarter of 2011. Maiden's
underwriting margins in the second quarter of 2011 were impacted by
the unprecedented frequency and severity of storms which exceeded
Maiden's quarterly provision for normalized catastrophe losses by
$9.5 million.
The impact of the updated accounting guidance issued by the
Financial Accounting Standards Board which limits the
capitalization of costs incurred to acquire or renew insurance
contracts to those that are incremental direct costs of successful
contract acquisitions was to decrease second quarter 2012 earnings
by approximately $0.8 million or $0.01 per diluted share. The
impact on the Company's combined ratio was an increase of
approximately 0.2%.
Total assets increased 10.5% to $3.8 billion compared to $3.4
billion at year-end 2011. Total cash on hand at June 30,
2012, was $143.3 million, comprised of cash and cash equivalents of
$58.9 million, down 68.7% from the end of 2011, and restricted cash
and cash equivalents of $84.4 million, a decrease of 26.5% versus
year-end of 2011. Shareholders' equity was $824.3
million, an increase of 7.2% compared to
December 31, 2011. Book value per share was $11.41
at the end of the second quarter of 2012 or 7.2% higher than at
December 31, 2011.
During the second quarter of 2012, the Board of Directors
declared a dividend of $0.08 per share.
Results for the six months ended June 30,
2012
Net income for the six months ended June 30, 2012 was $34.9
million compared to a net loss of $5.0 million in the first half of
2011. Net operating earnings(1) were $39.1 million, or $0.53
per diluted share compared to $31.0 million or $0.43 per diluted
share in the first six months of 2011. Year-to-date
annualized operating return on equity(1) was 9.9% compared to 8.3%
for the first half of last year.
Net premiums written rose 13.1% or $116.3 million to $1.0
billion in the first half of 2012 compared to the same period in
2011. The Diversified Reinsurance segment increased
3.7%. The AmTrust Quota Share Reinsurance segment was up
22.9%. Net premiums written for the ACAC Quota Share
rose 17.7% compared to the first six months of 2011.
Net premiums earned of $875.6 million increased 22.6% or $161.3
million compared to the first half of 2011. Earned
premiums grew in all business segments with Diversified Reinsurance
up 17.1%, AmTrust Quota Share Reinsurance up 33.9% and ACAC Quota
Share up 14.5%.
Net investment income of $38.5 million was down 1.1% compared to
the same period in 2011. This reflects the decrease in book
yield (excluding cash) to 3.74% from 3.98% at the end of June 2011,
which was mostly offset by the $493 million increase in total
investments.
Net loss and loss adjustment expenses of $588.4 million were up
$116.6 million. The loss ratio(7) increased 1.3
percentage points to 66.7% versus the first six months of 2011.
Commission and other acquisition expenses together with general
and administrative expenses of $276.0 million increased $37.9
million compared to the first half of 2011 and reflected a total
expense ratio of 31.2% compared with 33.0%. General and
administrative expenses for the first six months of 2012 totaled
$29.0 million compared with $25.1 million in the first half of
2011. These results reflected a general and administrative expense
ratio(9) of 3.2% in the first six months of 2012 and 3.5% in the
comparative period last year.
The combined ratio(10) for the first half of 2012 was
97.9% versus 98.4% for the first half of last year.
Conference Call
Maiden's CEO Art Raschbaum and CFO John Marshaleck will review
the second quarter 2012 results tomorrow morning via teleconference
and live audio webcast beginning at 8:30 a.m. EDT.
To participate in the conference call, please access one of the
following no later than 8:25 a.m. EDT:
U.S.Callers: 1.877.734.5373 |
Outside U.S. Callers: 1.973.200.3059 |
Passcode: 11200846 |
Webcast:
http://www.maiden.bm/presentations_conferences |
A replay of the conference call will be available beginning
11:00 a.m. EDT on August 8, 2012 through midnight on August 15,
2012. To listen to the replay, please dial toll free:
1.800.585.8367 (U.S. Callers) or toll: 1.404.537.3406 (callers
outside the U.S.) and enter the Passcode: 11200846 ; 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 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, 2012, Maiden had $3.8 billion in
assets and shareholders' equity of $824.3 million.
The Maiden Holdings, Ltd. logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=5006
(1)(4) 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.
(7)(9)(10) Loss ratio, general and administrative expense ratio
and combined ratio are operating metrics. Please see the additional
information on these measures under Segment information tables.
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, 2011 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, 2012 |
December 31,
2011 |
|
(Unaudited) |
(Audited) |
Assets |
|
|
Fixed maturities, available-for-sale, at fair
value (Amortized cost 2012: $2,299,444; 2011: $1,957,106) |
$ 2,393,035 |
$ 2,020,661 |
Other investments, at fair value (Cost 2012:
$2,408; 2011: $1,955) |
2,697 |
2,192 |
Total investments |
2,395,732 |
2,022,853 |
Cash and cash equivalents |
58,930 |
188,082 |
Restricted cash and cash equivalents |
84,417 |
114,895 |
Accrued investment income |
18,512 |
13,215 |
Reinsurance balances receivable,
net |
495,714 |
423,355 |
Funds withheld |
42,815 |
42,605 |
Prepaid reinsurance premiums |
44,437 |
35,381 |
Reinsurance recoverable on unpaid losses |
46,659 |
20,289 |
Loan to related party |
167,975 |
167,975 |
Deferred commission and other acquisition
costs |
270,024 |
248,436 |
Goodwill and intangible assets, net |
96,574 |
98,755 |
Other assets |
30,930 |
19,270 |
Total Assets |
$ 3,752,719 |
$ 3,395,111 |
Liabilities
and Equity |
|
|
Liabilities |
|
|
Reserve for loss and loss adjustment
expenses |
$ 1,522,770 |
$ 1,398,438 |
Unearned premiums |
974,277 |
832,047 |
Accrued expenses and other liabilities |
97,165 |
161,883 |
Senior notes |
207,500 |
107,500 |
Junior subordinated debt |
126,289 |
126,263 |
Total Liabilities |
2,928,001 |
2,626,131 |
|
|
|
Equity: |
|
|
Common shares |
732 |
732 |
Additional paid-in capital |
579,818 |
579,004 |
Accumulated other comprehensive
income |
95,558 |
64,059 |
Retained earnings |
152,005 |
128,648 |
Treasury stock, at cost |
(3,801) |
(3,801) |
Total Maiden Shareholders'
Equity |
824,312 |
768,642 |
Noncontrolling interest in
subsidiaries |
406 |
338 |
Total Equity |
824,718 |
768,980 |
Total Liabilities and
Equity |
$ 3,752,719 |
$ 3,395,111 |
|
|
|
|
|
|
Book value per share
(4) |
$ 11.41 |
$ 10.64 |
|
|
|
Common shares
outstanding |
72,261,582 |
72,221,428 |
|
Maiden Holdings,
Ltd. |
Income
Statement |
(in thousands (000's),
except per share data) |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
For the Three |
For the Three |
For the Six |
For the Six |
|
Months Ended |
Months Ended |
Months Ended |
Months Ended |
|
June 30, 2012 |
June 30, 2011 |
June 30, 2012 |
June 30, 2011 |
|
|
|
|
|
Revenues: |
|
|
|
|
Gross premiums written |
$ 445,228 |
$ 462,395 |
$ 1,058,440 |
$ 933,172 |
|
|
|
|
|
Net premiums written |
$ 411,960 |
$ 436,966 |
$ 1,002,793 |
$ 886,466 |
Change in unearned premiums |
25,156 |
(69,183) |
(127,181) |
(172,148) |
Net premiums earned |
437,116 |
367,783 |
875,612 |
714,318 |
Other insurance revenue |
2,274 |
2,179 |
7,028 |
6,834 |
Net investment income |
20,085 |
19,818 |
38,522 |
38,959 |
Net realized and unrealized investment
(losses) gains |
(2,939) |
591 |
(1,574) |
638 |
Total revenues |
456,536 |
390,371 |
919,588 |
760,749 |
Expenses: |
|
|
|
|
Net loss and loss adjustment
expenses |
300,435 |
250,599 |
588,352 |
471,781 |
Commission and other acquisition
expenses |
114,663 |
105,824 |
246,921 |
212,896 |
General and administrative expenses |
15,208 |
12,839 |
29,039 |
25,132 |
Total expenses |
430,306 |
369,262 |
864,312 |
709,809 |
|
|
|
|
|
Income from operations
(2) |
26,230 |
21,109 |
55,276 |
50,940 |
|
|
|
|
|
Other expenses |
|
|
|
|
Amortization of intangible assets |
(1,091) |
(1,259) |
(2,181) |
(2,517) |
Foreign exchange (losses) gains |
(874) |
939 |
105 |
2,001 |
Interest and amortization expenses |
(9,568) |
(9,292) |
(17,246) |
(18,410) |
Accelerated amortization of junior
subordinated debt discount and issuance cost |
-- |
(20,313) |
-- |
(20,313) |
Junior subordinated debt repurchase
expense |
-- |
(15,050) |
-- |
(15,050) |
Total other
expenses |
(11,533) |
(44,975) |
(19,322) |
(54,289) |
|
|
|
|
|
Income (loss) before income
taxes |
14,697 |
(23,866) |
35,954 |
(3,349) |
Income taxes: |
|
|
|
|
Current tax (benefit) expense |
(155) |
211 |
483 |
1,096 |
Deferred tax expense |
246 |
295 |
487 |
582 |
Income tax expense |
91 |
506 |
970 |
1,678 |
|
|
|
|
|
Net income (loss) |
14,606 |
(24,372) |
34,984 |
(5,027) |
Less: (income) loss attributable to
noncontrolling interest |
(65) |
6 |
(66) |
3 |
Net income (loss) attributable to
Maiden shareholders |
$ 14,541 |
$ (24,366) |
$ 34,918 |
$ (5,024) |
Net operating earnings attributable
to Maiden shareholders (1) |
$ 19,691 |
$ 11,204 |
$ 39,055 |
$ 30,982 |
|
|
|
|
|
Basic earnings (loss) per common
share attributable to Maiden shareholders |
$ 0.20 |
$ (0.34) |
$ 0.48 |
$ (0.07) |
Diluted earnings (loss) per common
share attributable to Maiden shareholders (6) |
$ 0.20 |
$ (0.34) |
$ 0.48 |
$ (0.07) |
Basic operating earnings per common
share attributable to Maiden shareholders |
$ 0.27 |
$ 0.16 |
$ 0.54 |
$ 0.43 |
Diluted operating earnings per common
share attributable to Maiden shareholders |
$ 0.27 |
$ 0.15 |
$ 0.53 |
$ 0.43 |
|
|
|
|
|
Dividends declared per common
share |
$ 0.08 |
$ 0.07 |
$ 0.16 |
$ 0.14 |
|
|
|
|
|
Weighted average number of basic
shares outstanding |
72,258,550 |
72,118,315 |
72,242,440 |
72,112,785 |
Weighted average number of diluted
shares outstanding |
73,040,926 |
72,945,339 |
73,063,659 |
72,863,494 |
|
|
|
|
|
Net loss and loss adjustment expense
ratio (7) |
68.4% |
67.7% |
66.7% |
65.4% |
Commission and other acquisition
expense ratio (8) |
26.1% |
28.6% |
28.0% |
29.5% |
General and administrative
expense ratio (9) |
3.4% |
3.5% |
3.2% |
3.5% |
Combined ratio (10) |
97.9% |
99.8% |
97.9% |
98.4% |
Annualized return on
equity |
7.2% |
(12.8%) |
8.8% |
(1.3%) |
Annualized return on equity on
operating earnings |
9.7% |
5.9% |
9.9% |
8.3% |
|
Maiden Holdings,
Ltd. |
Non - GAAP Financial
Measure |
(in thousands (000's),
except per share data) |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
For the Three Months |
For the Three Months |
For the Six Months |
For the Six Months |
|
Ended June 30, 2012 |
Ended June 30, 2011 |
Ended June 30, 2012 |
Ended June 30, 2011 |
|
|
|
|
|
Reconciliation of net income (loss)
to net operating earnings: |
|
|
|
|
Net income (loss) attributable to Maiden
shareholders |
$ 14,541 |
$ (24,366) |
$ 34,918 |
$ (5,024) |
Add (subtract) |
|
|
|
|
Net realized and unrealized investment
losses (gains) |
2,939 |
(591) |
1,574 |
(638) |
Foreign exchange losses (gains) |
874 |
(939) |
(105) |
(2,001) |
Amortization of intangible assets |
1,091 |
1,259 |
2,181 |
2,517 |
Accelerated amortization of junior
subordinated debt discount and issuance cost |
-- |
20,313 |
-- |
20,313 |
Junior subordinated debt repurchase
expense |
-- |
15,050 |
-- |
15,050 |
Non-recurring general and administrative
expenses relating to IIS Acquisition |
-- |
183 |
-- |
183 |
Non-cash deferred tax charge |
246 |
295 |
487 |
582 |
Net operating earnings attributable to Maiden
shareholders (1) |
$ 19,691 |
$ 11,204 |
$ 39,055 |
$ 30,982 |
|
|
|
|
|
Operating earnings per common share
attributable to Maiden shareholders: |
|
|
|
|
|
|
|
|
|
Basic earnings per common share attributable
to Maiden shareholders |
$ 0.27 |
$ 0.16 |
$ 0.54 |
$ 0.43 |
Diluted earnings per common share
attributable to Maiden shareholders |
$ 0.27 |
$ 0.15 |
$ 0.53 |
$ 0.43 |
|
|
|
|
|
Reconciliation of net income (loss)
to income from operations: |
|
|
|
|
Net income (loss) attributable to Maiden
shareholders |
$ 14,541 |
$ (24,366) |
$ 34,918 |
$ (5,024) |
Add (subtract) |
|
|
|
|
Foreign exchange losses (gains) |
874 |
(939) |
(105) |
(2,001) |
Amortization of intangible assets |
1,091 |
1,259 |
2,181 |
2,517 |
Interest and amortization expenses |
9,568 |
9,292 |
17,246 |
18,410 |
Accelerated amortization of junior
subordinated debt discount and issuance cost |
-- |
20,313 |
-- |
20,313 |
Junior subordinated debt repurchase
expense |
-- |
15,050 |
-- |
15,050 |
Income tax expense |
91 |
506 |
970 |
1,678 |
Income (loss) attributable to
noncontrolling interest |
65 |
(6) |
66 |
(3) |
Income from operations (2) |
$ 26,230 |
$ 21,109 |
$ 55,276 |
$ 50,940 |
|
|
|
|
|
|
June 30, 2012 |
December 31, 2011 |
|
|
Investable assets: |
|
|
|
|
Total investments |
$ 2,395,732 |
$ 2,022,853 |
|
|
Cash and cash equivalents |
58,930 |
188,082 |
|
|
Restricted cash and cash equivalents |
84,417 |
114,895 |
|
|
Funds withheld (3) |
28,952 |
29,783 |
|
|
Loan to related party |
167,975 |
167,975 |
|
|
Total investable assets (3) |
$ 2,736,006 |
$ 2,523,588 |
|
|
|
|
|
|
|
|
June 30, 2012 |
December 31, 2011 |
|
|
Capital: |
|
|
|
|
Senior notes |
$ 207,500 |
$ 107,500 |
|
|
Junior subordinated debt |
126,289 |
126,263 |
|
|
Total Maiden shareholders' equity |
824,312 |
768,642 |
|
|
Total capital (5) |
$ 1,158,101 |
$ 1,002,405 |
|
|
|
|
|
|
|
(1) Net
operating earnings is a non-GAAP financial measure defined by the
Company as net income attributable to Maiden shareholders excluding
realized and unrealized investment gains and losses, foreign
exchange gains and losses, amortization of intangible assets,
accelerated amortization of junior subordinated debt discount and
issuance cost, junior subordinated debt repurchase expense,
non-recurring general and administrative expenses relating to
acquisitions 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 shareholders
excluding foreign exchange gains and losses, amortization of
intangible assets, interest and amortization expenses, accelerated
amortization of junior subordinated debt discount and issuance
cost, junior subordinated debt repurchase expense, 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, loan to a related party and the portion of
the funds withheld balance that comprises fixed maturity securities
and cash and cash equivalents. |
|
|
|
|
|
(4)
Calculated by dividing total Maiden shareholders' equity by total
common shares outstanding. |
|
|
|
|
|
(5)
Capital is the total of the Company's senior notes, junior
subordinated debt and shareholders' equity. |
|
|
|
|
|
(6)
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. |
|
Maiden Holdings,
Ltd. |
Supplemental Financial
Data - Segment Information |
(in thousands
(000's)) |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diversified |
AmTrust Quota |
ACAC Quota |
|
For the Three Months Ended June 30,
2012 |
Reinsurance |
Share
Reinsurance |
Share |
Total |
Net premiums written |
$ 143,981 |
$ 195,629 |
$ 72,350 |
$ 411,960 |
Net premiums earned |
$ 199,130 |
$ 167,816 |
$ 70,170 |
$ 437,116 |
Other insurance revenue |
2,274 |
-- |
-- |
2,274 |
Net loss and loss adjustment expenses |
(138,420) |
(116,755) |
(45,260) |
(300,435) |
Commissions and other acquisition
expenses |
(47,945) |
(44,590) |
(22,128) |
(114,663) |
General and administrative expenses |
(12,145) |
(530) |
(194) |
(12,869) |
Underwriting income |
$ 2,894 |
$ 5,941 |
$ 2,588 |
$ 11,423 |
|
|
|
|
|
Reconciliation to net income
attributable to Maiden shareholders |
|
|
|
|
Net investment income and realized losses on
investment |
|
|
|
17,146 |
Amortization of intangible assets |
|
|
|
(1,091) |
Foreign exchange losses |
|
|
|
(874) |
Interest and amortization expenses |
|
|
|
(9,568) |
Other general and administrative
expenses |
|
|
|
(2,339) |
Income tax expense |
|
|
|
(91) |
Income attributable to noncontrolling
interest |
|
|
|
(65) |
|
|
|
|
|
Net income attributable to Maiden
shareholders |
|
|
|
$ 14,541 |
|
|
|
|
|
Net loss and loss expense ratio (7) |
68.7% |
69.6% |
64.5% |
68.4% |
Acquisition cost ratio (8) |
23.8% |
26.6% |
31.5% |
26.1% |
General and administrative expense ratio
(9) |
6.1% |
0.3% |
0.3% |
3.4% |
Combined ratio (10) |
98.6% |
96.5% |
96.3% |
97.9% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diversified |
AmTrust Quota |
ACAC Quota |
|
For the Three Months Ended June 30,
2011 |
Reinsurance |
Share
Reinsurance |
Share |
Total |
Net premiums written |
$ 158,020 |
$ 216,449 |
$ 62,497 |
$ 436,966 |
Net premiums earned |
$ 170,288 |
$ 136,299 |
$ 61,196 |
$ 367,783 |
Other insurance revenue |
2,179 |
-- |
-- |
2,179 |
Net loss and loss adjustment expenses |
(116,387) |
(94,740) |
(39,472) |
(250,599) |
Commissions and other acquisition
expenses |
(48,257) |
(38,116) |
(19,451) |
(105,824) |
General and administrative expenses |
(8,309) |
(596) |
(472) |
(9,377) |
Underwriting (loss)
income |
$ (486) |
$ 2,847 |
$ 1,801 |
$ 4,162 |
|
|
|
|
|
Reconciliation to net loss
attributable to Maiden shareholders |
|
|
|
|
Net investment income and realized and
unrealized gains on investment |
|
|
|
20,409 |
Amortization of intangible assets |
|
|
|
(1,259) |
Foreign exchange gains |
|
|
|
939 |
Interest and amortization expenses |
|
|
|
(9,292) |
Accelerated amortization of junior
subordinated debt discount and issuance cost |
|
|
|
(20,313) |
Junior subordinated debt repurchase
expense |
|
|
|
(15,050) |
Other general and administrative
expenses |
|
|
|
(3,462) |
Income tax expense |
|
|
|
(506) |
Loss attributable to noncontrolling
interest |
|
|
|
6 |
|
|
|
|
|
Net loss attributable to Maiden
shareholders |
|
|
|
$ (24,366) |
|
|
|
|
|
Net loss and loss expense ratio (7) |
67.5% |
69.5% |
64.5% |
67.7% |
Acquisition cost ratio (8) |
28.0% |
28.0% |
31.8% |
28.6% |
General and administrative expense ratio
(9) |
4.8% |
0.4% |
0.8% |
3.5% |
Combined ratio (10) |
100.3% |
97.9% |
97.1% |
99.8% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(7) Calculated by dividing net
loss and loss adjustment expenses by net premiums earned and other
insurance revenue. |
(8) Calculated by dividing
commission and other acquisition expenses by net premiums earned
and other insurance revenue. |
(9) Calculated by dividing
general and administrative expenses by net premiums earned and
other insurance revenue. |
(10) Calculated by adding
together net loss and loss expense ratio, acquisition cost ratio
and general and administrative expense ratio. |
|
Maiden Holdings,
Ltd. |
Supplemental Financial
Data - Segment Information |
(in thousands
(000's)) |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diversified |
AmTrust Quota |
ACAC Quota |
|
For the Six Months Ended June 30,
2012 |
Reinsurance |
Share
Reinsurance |
Share |
Total |
Net premiums written |
$ 432,277 |
$ 421,644 |
$ 148,872 |
$ 1,002,793 |
Net premiums earned |
$ 403,593 |
$ 335,695 |
$ 136,324 |
$ 875,612 |
Other insurance revenue |
7,028 |
-- |
-- |
7,028 |
Net loss and loss adjustment expenses |
(270,812) |
(229,611) |
(87,929) |
(588,352) |
Commissions and other acquisition
expenses |
(112,094) |
(91,759) |
(43,068) |
(246,921) |
General and administrative expenses |
(22,593) |
(909) |
(367) |
(23,869) |
Underwriting income |
$ 5,122 |
$ 13,416 |
$ 4,960 |
$ 23,498 |
|
|
|
|
|
Reconciliation to net income
attributable to Maiden shareholders |
|
|
|
|
Net investment income and realized losses on
investment |
|
|
|
36,948 |
Amortization of intangible assets |
|
|
|
(2,181) |
Foreign exchange gains |
|
|
|
105 |
Interest and amortization expenses |
|
|
|
(17,246) |
Other general and administrative
expenses |
|
|
|
(5,170) |
Income tax expense |
|
|
|
(970) |
Income attributable to noncontrolling
interest |
|
|
|
(66) |
|
|
|
|
|
Net income attributable to Maiden
shareholders |
|
|
|
$ 34,918 |
|
|
|
|
|
Net loss and loss expense ratio (7) |
66.0% |
68.4% |
64.5% |
66.7% |
Acquisition cost ratio (8) |
27.3% |
27.3% |
31.6% |
28.0% |
General and administrative expense ratio
(9) |
5.5% |
0.3% |
0.3% |
3.2% |
Combined ratio (10) |
98.8% |
96.0% |
96.4% |
97.9% |
|
|
|
|
|
|
|
|
|
|
|
Diversified |
AmTrust Quota |
ACAC Quota |
|
For the Six Months Ended June 30,
2011 |
Reinsurance |
Share
Reinsurance |
Share |
Total |
Net premiums written |
$ 416,838 |
$ 343,163 |
$ 126,465 |
$ 886,466 |
Net premiums earned |
$ 344,522 |
$ 250,773 |
$ 119,023 |
$ 714,318 |
Other insurance revenue |
6,834 |
-- |
-- |
6,834 |
Net loss and loss adjustment expenses |
(226,732) |
(168,279) |
(76,770) |
(471,781) |
Commissions and other acquisition
expenses |
(99,677) |
(75,353) |
(37,866) |
(212,896) |
General and administrative expenses |
(16,337) |
(1,264) |
(1,015) |
(18,616) |
Underwriting income |
$ 8,610 |
$ 5,877 |
$ 3,372 |
$ 17,859 |
|
|
|
|
|
Reconciliation to net loss
attributable to Maiden shareholders |
|
|
|
|
Net investment income and realized and
unrealized gains on investment |
|
|
|
39,597 |
Amortization of intangible assets |
|
|
|
(2,517) |
Foreign exchange gains |
|
|
|
2,001 |
Interest and amortization expenses |
|
|
|
(18,410) |
Accelerated amortization of junior
subordinated debt discount and issuance cost |
|
|
|
(20,313) |
Junior subordinated debt repurchase
expense |
|
|
|
(15,050) |
Other general and administrative
expenses |
|
|
|
(6,516) |
Income tax expense |
|
|
|
(1,678) |
Loss attributable to noncontrolling
interest |
|
|
|
3 |
|
|
|
|
|
Net loss attributable to Maiden
shareholders |
|
|
|
$ (5,024) |
|
|
|
|
|
Net loss and loss expense ratio (7) |
64.5% |
67.1% |
64.5% |
65.4% |
Acquisition cost ratio (8) |
28.4% |
30.0% |
31.8% |
29.5% |
General and administrative expense ratio
(9) |
4.6% |
0.6% |
0.9% |
3.5% |
Combined ratio (10) |
97.5% |
97.7% |
97.2% |
98.4% |
|
|
|
|
|
|
|
|
|
|
(7) Calculated by dividing net
loss and loss adjustment expenses by net premiums earned and other
insurance revenue. |
(8) Calculated by dividing
commission and other acquisition expenses by net premiums earned
and other insurance revenue. |
(9) Calculated by dividing
general and administrative expenses by net premiums earned and
other insurance revenue. |
(10) Calculated by adding
together net loss and loss expense ratio, acquisition cost ratio
and general and administrative expense ratio. |
CONTACT: Noah Fields, Vice President, Investor Relations
Maiden Holdings, Ltd.
Phone: 441.298.4927
E-mail: nfields@maiden.bm
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