Highlights for the three months ended September 30,
2012
- Book value per common share(4) of $12.14, up 14.1%
versus year-end 2011 and up 6.4% versus June 30, 2012
- Annualized operating return on common equity(1) of 9.1%
compared to 11.1% in the third quarter of 2011
- Net operating earnings (1) of $19.5 million, or $0.27
per diluted common share compared with $21.4 million, or $0.29 per
diluted common share in the third quarter of 2011
- Net investment income rose to $21.6 million or an
increase of 14.9% compared to the third quarter of
2011
- Total investments increased 9.1% in the third quarter
of 2012 to $2.6 billion
- Net premiums written increased 6.4% to $455.8 million
versus the same period last year
- Combined ratio of 98.2% compared to
97.4% in the third quarter of 2011
- Issued $150 million 8.25% Non-Cumulative Perpetual
Preference Shares in August
Highlights for the nine months ended September 30,
2012
- Annualized operating return on common equity(1) of 9.5%
compared to 9.2% in the first nine months of last
year
- Net operating earnings (1) of $58.6 million, or $0.80
per diluted common share compared with $52.4 million, or $0.72 per
diluted common share in the first nine months of 2011
- Combined ratio of 98.0% compared to 98.0% in the first
nine months of 2011
- Net investment income was $60.1 million, an increase of
4.1% compared to the first nine months of 2011
- Total investments increased 29.2% in the first nine
months of 2012 to $2.6 billion
- Net premiums written increased 10.9% to $1.5 billion
versus the same period last year; excluding a one-time $45.9
million unearned premium transfer in the second quarter of 2011,
net premiums written would have increased 14.8%
- Capital raised year-to-date 2012 totals $250 million,
including $100 million 30-Year, 8% Senior Notes issued in March and
$150 million of 8.25% Preference Shares issued in
August
Maiden Holdings, Ltd. (Nasdaq:MHLD) today reported third quarter
2012 net operating earnings(1) of $19.5 million, or $0.27 per
diluted common share compared with $21.4 million, or $0.29 per
diluted common share in the comparative quarter in 2011. Net income
totaled $21.9 million, or $0.30 per diluted common share compared
with net income of $16.0 million, or $0.22 per diluted common share
in the third quarter of 2011.
Commenting on the Company's earnings, Art Raschbaum, Chief
Executive Officer of Maiden Holdings, said: "The quarter reflects
solid performance with robust growth in book value and
capitalization, profitable underwriting results and continued
expansion of our unique diversified underwriting
portfolio. Since year end 2011, Maiden's total equity has
grown by 34% to just over $1 billion. We believe that our
strong capitalization positions Maiden to benefit from continued
improvements in the operating environment."
Results for the three months ended September 30,
2012
Net operating earnings(1) for the third quarter of 2012 were
$19.5 million, or $0.27 per diluted common share compared with
$21.4 million, or $0.29 per diluted common share in the comparative
quarter in 2011. Net income was $21.9 million, or $0.30 per
diluted common share compared with net income of $16.0 million or
$0.22 per diluted common share in the third quarter of
2011.
In the third quarter of 2012 net premiums written totaled $455.8
million, an increase of 6.4% compared to the third quarter of
2011. Net premiums written increased in all three business
segments. The Diversified Reinsurance segment net premiums
written were up 2.8% to $193.9 million versus the third quarter of
2011 primarily due to new business during the quarter and to a
lesser extent, the growth of existing client business. In the
AmTrust Quota Share Reinsurance segment, net premiums written
increased by 7.4% to $186.3 million compared to the third quarter
of 2011, with the most significant premium increases coming from
worker's compensation, warranty and European hospital liability
lines. Net premiums written from the ACAC Quota Share increased by
13.9% to $75.6 million compared to the same period in 2011 due to
the successful targeting of new business.
Net premiums earned of $449.0 million increased 6.8%, or $28.7
million compared to the third quarter of 2011. Earned
premiums increased across all business segments with Diversified
Reinsurance up 1.1%, AmTrust Quota Share Reinsurance up 11.0% and
ACAC Quota Share up 14.1%.
Net investment income of $21.6 million in the third quarter of
2012 increased 14.9% compared to the third quarter of
2011. Total investments increased $590.0 million or 29.2% to
$2.6 billion versus December 31, 2011. The
average yield on the fixed income portfolio (excluding cash) is
3.42% with an average duration of 3.32 years.
Net loss and loss adjustment expenses of $309.1 million were up
$34.6 million compared to the third quarter of 2011. The
loss ratio(6) increased by 3.9 percentage points to 68.5% versus
the third quarter of 2011.
Commission and other acquisition expenses together with general
and administrative expenses of $134.5 million decreased $4.8
million in the third quarter of 2012 from the year ago quarter,
while the total expense ratio improved to 29.7% in the third
quarter of 2012 compared with 32.8% in the same quarter last year.
General and administrative expenses for the third quarter of
2012 totaled $13.6 million compared with $12.5 million in the third
quarter of 2011. The general and administrative expense ratio(8)
decreased to 2.9% versus 3.0% in the third quarter of
2011.
The combined ratio(9) for the third quarter of 2012 totaled
98.2% compared with 97.4% in the third quarter of 2011.
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 third quarter 2012 earnings
by approximately $0.5 million or $0.01 per diluted common share.
The impact on the Company's combined ratio for the quarter was an
increase of approximately 0.1%.
Total assets increased 16.3% to $3.9 billion at September 30,
2012 compared to $3.4 billion at year-end 2011. Total
cash on hand at September 30, 2012, was $182.2 million, comprised
of cash and cash equivalents of $66.9 million, down 64.4% from the
end of 2011, and restricted cash and cash equivalents of $115.3
million, which is up 0.4% compared to the end of
2011. Shareholders' equity was $1.0 billion, an increase
of 33.7% compared to December 31, 2011. Book value
per common share was $12.14 at the end of the third quarter of 2012
or 14.1% higher than at December 31, 2011.
During the third quarter of 2012, the Board of Directors
declared a dividend of $0.08 per common share.
Results for the nine months ended September 30,
2012
Net income for the nine months ended September 30, 2012 was
$56.8 million compared to net income of $11.0 million in the first
three quarters of 2011. During the 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 junior subordinated debt
discount and issuance costs.
Net operating earnings(1) were $58.6 million, or $0.80 per
diluted common share compared to $52.4 million or $0.72 per diluted
common share in the first nine months of
2011. Year-to-date annualized operating return on common
equity(1) was 9.5% compared to 9.2% for the first three quarters of
2011.
Net premiums written rose 10.9% or $143.6 million to $1.5
billion in the first nine months of 2012 compared to the same
period in 2011. Net premiums written for the Diversified
Reinsurance segment increased 3.4% compared to the first nine
months of 2011 to $626.2 million in the first three quarters of
2012. Net premiums written for the AmTrust Quota Share
Reinsurance segment was $607.9 million, up 17.7% compared to the
first three quarters of 2011 (however, excluding the impact of the
one-time unearned premium transfer of $45.9 million in the second
quarter of 2011 related to the European hospitality liability
business, the net premiums written in the AmTrust Quota Share
Reinsurance segment would have increased 29.1% compared to the
first three quarters of 2011). Net premiums written for
the ACAC Quota Share rose 16.4%, to $224.5 million compared to the
first nine months of 2011.
Net premiums earned in the first nine months of $1.3 billion
increased 16.7% or $190.0 million compared to the first nine months
of 2011. Earned premiums grew in all business segments
with Diversified Reinsurance up 11.3%, AmTrust Quota Share
Reinsurance up 25.0% and ACAC Quota Share up 14.4% in the first
nine months of 2012.
Net investment income in the first nine months of 2012 was $60.1
million, up 4.1% compared to the same period in 2011. This
reflects the $712.8 million increase in total investments at the
end of the third quarter 2012 compared to the end of the third
quarter of 2011, offset by a decrease in book yield (excluding
cash) to 3.42% from 3.84% at the end of September 2011.
Net loss and loss adjustment expenses for the first nine months
of 2012 were $897.5 million, up $151.2 million compared to the same
period in 2011. The loss ratio(6) increased 2.2
percentage points to 67.3% versus the first nine months of
2011.
Commission and other acquisition expenses together with general
and administrative expenses of $410.5 million increased $33.2
million compared to the first nine months of 2011 and reflected a
total expense ratio of 30.7% compared with 32.9%. General and
administrative expenses for the first nine months of 2012 totaled
$42.6 million compared with $37.6 million in the first three
quarters of 2011. These results reflected a general and
administrative expense ratio(8) of 3.1% in the first nine months of
2012 and 3.3% in the comparative period last year.
The combined ratio(9) for the first nine months of 2012 was
98.0%, which was equal to the combined ratio(9) for the first nine
months of last year.
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 earnings for the first nine
months of 2012 by approximately $2.5 million or $0.03 per diluted
common share. The impact on the Company's combined ratio for the
first nine months of 2012 was an increase of approximately
0.2%.
(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.
(6)(8)(9) 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.
Conference Call
Maiden's CEO Art Raschbaum and CFO John Marshaleck will review
the third quarter 2012 results tomorrow morning via teleconference
and live audio webcast beginning at 8:30 a.m. ET.
| To participate in the conference call, please
access one of the following no later than 8:25 a.m. ET: |
| U.S.Callers: 1.877.734.5373 |
| Outside U.S. Callers: 1.973.200.3059 |
| Passcode:47870194 |
| Webcast:
http://www.maiden.bm/presentations_conferences |
A replay of the conference call will be available beginning
11:00 a.m. ET on November 8, 2012 through midnight on November 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: 47870194; 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 September 30, 2012, Maiden had $3.9 billion
in assets and shareholders' equity of $1.0 billion.
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 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) |
| |
|
|
| |
|
|
| |
September 30, 2012
(Unaudited) |
December 31, 2011
(Audited) |
| Assets |
|
|
| Fixed maturities, available-for-sale, at fair
value (Amortized cost 2012: $2,472,806; 2011: $1,957,106) |
$ 2,610,012 |
$ 2,020,661 |
| Other investments, at fair value (Cost 2012:
$2,530; 2011: $1,955) |
2,826 |
2,192 |
| Total investments |
2,612,838 |
2,022,853 |
| Cash and cash equivalents |
66,877 |
188,082 |
| Restricted cash and cash equivalents |
115,324 |
114,895 |
| Accrued investment income |
21,329 |
13,215 |
| Reinsurance balances receivable,
net |
449,186 |
423,355 |
| Funds withheld |
41,927 |
42,605 |
| Prepaid reinsurance premiums |
43,621 |
35,381 |
| Reinsurance recoverable on unpaid losses |
29,110 |
20,289 |
| Loan to related party |
167,975 |
167,975 |
| Deferred commission and other acquisition
costs |
274,587 |
248,436 |
| Goodwill and intangible assets, net |
95,484 |
98,755 |
| Other assets |
30,857 |
19,270 |
| Total Assets |
$ 3,949,115 |
$ 3,395,111 |
| Liabilities
and Equity |
|
|
| Liabilities |
|
|
| Reserve for loss and loss adjustment
expenses |
$ 1,547,103 |
$ 1,398,438 |
| Unearned premiums |
976,689 |
832,047 |
| Accrued expenses and other liabilities |
63,318 |
161,883 |
| Senior notes |
207,500 |
107,500 |
| Junior subordinated debt |
126,303 |
126,263 |
| Total Liabilities |
2,920,913 |
2,626,131 |
| |
|
|
| Equity: |
|
|
| Preference Shares - Series A |
150,000 |
-- |
| Common shares |
732 |
732 |
| Additional paid-in capital |
575,293 |
579,004 |
| Accumulated other comprehensive
income |
137,441 |
64,059 |
| Retained earnings |
168,141 |
128,648 |
| Treasury stock, at cost |
(3,801) |
(3,801) |
| Total Maiden Shareholders'
Equity |
1,027,806 |
768,642 |
| Noncontrolling interest in
subsidiaries |
396 |
338 |
| Total Equity |
1,028,202 |
768,980 |
| Total Liabilities and
Equity |
$ 3,949,115 |
$ 3,395,111 |
| |
|
|
| |
|
|
| Book value per common share
(4) |
$ 12.14 |
$ 10.64 |
| |
|
|
| Common shares
outstanding |
72,282,489 |
72,221,428 |
| |
| |
| Maiden Holdings,
Ltd. |
| Income
Statement |
| (in thousands (000's),
except per share data) |
|
(Unaudited) |
| |
|
|
|
|
| |
|
|
|
|
| |
For the Three Months Ended
September 30, 2012 |
For the Three Months Ended
September 30, 2011 |
For the Nine Months Ended September
30, 2012 |
For the Nine Months Ended September
30, 2011 |
| Revenues: |
|
|
|
|
| Gross premiums written |
$ 478,515 |
$ 451,130 |
$ 1,536,955 |
$ 1,384,302 |
| |
|
|
|
|
| Net premiums written |
$ 455,847 |
$ 428,586 |
$ 1,458,640 |
$ 1,315,052 |
| Change in unearned premiums |
(6,874) |
(8,309) |
(134,055) |
(180,457) |
| Net premiums earned |
448,973 |
420,277 |
1,324,585 |
1,134,595 |
| Other insurance revenue |
2,622 |
4,530 |
9,650 |
11,364 |
| Net investment income |
21,550 |
18,749 |
60,072 |
57,708 |
| Net realized and unrealized gains (losses) on
investment |
2,410 |
(2,900) |
836 |
(2,262) |
| Total revenues |
475,555 |
440,656 |
1,395,143 |
1,201,405 |
| Expenses: |
|
|
|
|
| Net loss and loss adjustment
expenses |
309,146 |
274,504 |
897,498 |
746,285 |
| Commission and other acquisition
expenses |
120,923 |
126,777 |
367,844 |
339,673 |
| General and administrative expenses |
13,578 |
12,475 |
42,617 |
37,607 |
| Total expenses |
443,647 |
413,756 |
1,307,959 |
1,123,565 |
| |
|
|
|
|
| Income from operations
(2) |
31,908 |
26,900 |
87,184 |
77,840 |
| |
|
|
|
|
| Other expenses |
|
|
|
|
| Amortization of intangible assets |
(1,090) |
(1,258) |
(3,271) |
(3,775) |
| Foreign exchange gains (losses) |
1,213 |
(1,103) |
1,318 |
898 |
| Interest and amortization expenses |
(9,569) |
(8,178) |
(26,815) |
(26,588) |
| Accelerated amortization of junior
subordinated debt discount and issuance cost |
-- |
-- |
-- |
(20,313) |
| Junior subordinated debt repurchase
expense |
-- |
-- |
-- |
(15,050) |
| Total other
expenses |
(9,446) |
(10,539) |
(28,768) |
(64,828) |
| |
|
|
|
|
| Income before income
taxes |
22,462 |
16,361 |
58,416 |
13,012 |
| Income taxes: |
|
|
|
|
| Current tax expense |
397 |
203 |
880 |
1,299 |
| Deferred tax expense |
131 |
156 |
618 |
738 |
| Income tax expense |
528 |
359 |
1,498 |
2,037 |
| |
|
|
|
|
| Net income |
21,934 |
16,002 |
56,918 |
10,975 |
| Less: (income) loss attributable to
noncontrolling interest |
(15) |
2 |
(81) |
5 |
| Net income attributable to Maiden
common shareholders |
$ 21,919 |
$ 16,004 |
$ 56,837 |
$ 10,980 |
| Net operating earnings attributable
to Maiden common shareholders (1) |
$ 19,517 |
$ 21,429 |
$ 58,572 |
$ 52,411 |
| |
|
|
|
|
| Basic earnings per common share
attributable to Maiden shareholders |
$ 0.30 |
$ 0.22 |
$ 0.79 |
$ 0.15 |
| Diluted earnings per common share
attributable to Maiden shareholders |
$ 0.30 |
$ 0.22 |
$ 0.78 |
$ 0.15 |
| Basic operating earnings per common
share attributable to Maiden shareholders |
$ 0.27 |
$ 0.30 |
$ 0.81 |
$ 0.73 |
| Diluted operating earnings per common
share attributable to Maiden shareholders |
$ 0.27 |
$ 0.29 |
$ 0.80 |
$ 0.72 |
| Dividends declared per common
share |
$ 0.08 |
$ 0.08 |
$ 0.24 |
$ 0.22 |
| |
|
|
|
|
| Weighted average number of basic
shares outstanding |
72,270,052 |
72,182,759 |
72,251,711 |
72,136,366 |
| |
|
|
|
|
| Weighted average number of diluted
shares outstanding |
73,138,961 |
72,921,968 |
73,088,533 |
72,883,334 |
| |
|
|
|
|
| Net loss and loss adjustment expense
ratio (6) |
68.5% |
64.6% |
67.3% |
65.1% |
| Commission and other acquisition
expense ratio (7) |
26.8% |
29.8% |
27.6% |
29.6% |
| General and administrative
expense ratio (8) |
2.9% |
3.0% |
3.1% |
3.3% |
| Combined ratio (9) |
98.2% |
97.4% |
98.0% |
98.0% |
| Annualized return on
equity |
10.2% |
8.3% |
9.2% |
1.9% |
| Annualized return on equity on
operating earnings |
9.1% |
11.1% |
9.5% |
9.2% |
| |
| |
| Maiden Holdings,
Ltd. |
| Non - GAAP Financial
Measure |
| (in thousands (000's),
except per share data) |
|
(Unaudited) |
| |
|
|
|
|
| |
For the Three Months Ended
September 30, 2012 |
For the Three Months Ended
September 30, 2011 |
For the Nine Months Ended September
30, 2012 |
For the Nine Months Ended September
30, 2011 |
| |
|
|
|
|
| Reconciliation of net income
attributable to Maiden common shareholders to net operating
earnings: |
|
|
|
|
| Net income attributable to Maiden common
shareholders |
$ 21,919 |
$ 16,004 |
$ 56,837 |
$ 10,980 |
| Add (subtract) |
|
|
|
|
| Net realized and unrealized (gains)
losses on investment |
(2,410) |
2,900 |
(836) |
2,262 |
| Foreign exchange (gains)
losses |
(1,213) |
1,103 |
(1,318) |
(898) |
| Amortization of intangible assets |
1,090 |
1,258 |
3,271 |
3,775 |
| Accelerated amortization of junior
subordinated debt discount and issuance cost |
-- |
-- |
-- |
20,313 |
| Junior subordinated debt repurchase
expense |
-- |
-- |
-- |
15,050 |
| Non-recurring general and administrative
expenses relating to IIS Acquisition |
-- |
8 |
-- |
191 |
| Non-cash deferred tax charge |
131 |
156 |
618 |
738 |
| Net operating earnings attributable to Maiden
common shareholders (1) |
$ 19,517 |
$ 21,429 |
$ 58,572 |
$ 52,411 |
| |
|
|
|
|
| Operating earnings per common share
attributable to Maiden shareholders: |
|
|
|
|
| |
|
|
|
|
| Basic earnings per common share attributable
to Maiden shareholders |
$ 0.27 |
$ 0.30 |
$ 0.81 |
$ 0.73 |
| Diluted earnings per common share
attributable to Maiden shareholders |
$ 0.27 |
$ 0.29 |
$ 0.80 |
$ 0.72 |
| |
|
|
|
|
| Reconciliation of net income
attributable to Maiden common shareholders to income from
operations: |
|
|
|
|
| Net income attributable to Maiden common
shareholders |
$ 21,919 |
$ 16,004 |
$ 56,837 |
$ 10,980 |
| Add (subtract) |
|
|
|
|
| Foreign exchange (gains) losses |
(1,213) |
1,103 |
(1,318) |
(898) |
| Amortization of intangible assets |
1,090 |
1,258 |
3,271 |
3,775 |
| Interest and amortization expenses |
9,569 |
8,178 |
26,815 |
26,588 |
| Accelerated amortization of junior
subordinated debt discount and issuance cost |
-- |
-- |
-- |
20,313 |
| Junior subordinated debt repurchase
expense |
-- |
-- |
-- |
15,050 |
| Income tax expense |
528 |
359 |
1,498 |
2,037 |
| Income (loss) attributable to
noncontrolling interest |
15 |
(2) |
81 |
(5) |
| Income from operations (2) |
$ 31,908 |
$ 26,900 |
$ 87,184 |
$ 77,840 |
| |
|
|
|
|
| |
September 30, 2012 |
December 31, 2011 |
|
|
| Investable assets: |
|
|
|
|
| Total investments |
$ 2,612,838 |
$ 2,022,853 |
|
|
| Cash and cash equivalents |
66,877 |
188,082 |
|
|
| Restricted cash and cash equivalents |
115,324 |
114,895 |
|
|
| Funds withheld (3) |
28,443 |
29,783 |
|
|
| Loan to related party |
167,975 |
167,975 |
|
|
| Total investable assets (3) |
$ 2,991,457 |
$ 2,523,588 |
|
|
| |
|
|
|
|
| |
September 30, 2012 |
December 31, 2011 |
|
|
| Capital: |
|
|
|
|
| Senior notes |
$ 207,500 |
$ 107,500 |
|
|
| Junior subordinated debt |
126,303 |
126,263 |
|
|
| Total Maiden shareholders' equity |
1,027,806 |
768,642 |
|
|
| Total capital (5) |
$ 1,361,609 |
$ 1,002,405 |
|
|
| |
|
|
|
|
| |
| (1) Net operating earnings
is a non-GAAP financial measure defined by the Company as net
income attributable to Maiden common shareholders excluding
realized and unrealized investment gains and losses, foreign
exchange 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 common 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 less the preference shares -
series A by total common shares outstanding. |
| |
| (5) Capital is the total of
the Company's senior notes, junior subordinated debt and Maiden
shareholders' equity. |
| |
| Maiden Holdings,
Ltd. |
| Supplemental Financial
Data - Segment Information |
| (in thousands
(000's)) |
|
(Unaudited) |
| |
|
|
|
|
| |
|
|
|
|
| For the Three Months Ended September
30, 2012 |
Diversified
Reinsurance |
AmTrust Quota Share
Reinsurance |
ACAC Quota
Share |
Total |
| Net premiums written |
$ 193,943 |
$ 186,258 |
$ 75,646 |
$ 455,847 |
| Net premiums earned |
$ 200,020 |
$ 177,293 |
$ 71,660 |
$ 448,973 |
| Other insurance revenue |
2,622 |
-- |
-- |
2,622 |
| Net loss and loss adjustment expenses |
(141,625) |
(120,942) |
(46,579) |
(309,146) |
| Commissions and other acquisition
expenses |
(47,801) |
(50,525) |
(22,597) |
(120,923) |
| General and administrative expenses |
(9,256) |
(535) |
(199) |
(9,990) |
| Underwriting income |
$ 3,960 |
$ 5,291 |
$ 2,285 |
$ 11,536 |
| |
|
|
|
|
| Reconciliation to net income
attributable to Maiden common shareholders |
|
|
|
|
| Net investment income and realized gains on
investment |
|
|
|
23,960 |
| Amortization of intangible assets |
|
|
|
(1,090) |
| Foreign exchange gains |
|
|
|
1,213 |
| Interest and amortization expenses |
|
|
|
(9,569) |
| Other general and administrative
expenses |
|
|
|
(3,588) |
| Income tax expense |
|
|
|
(528) |
| Income attributable to noncontrolling
interest |
|
|
|
(15) |
| Net income attributable to Maiden
common shareholders |
|
|
|
$ 21,919 |
| |
|
|
|
|
| Net loss and loss adjustment expense ratio
(6) |
69.9% |
68.2% |
65.0% |
68.5% |
| Commission and other acquisition expense
ratio (7) |
23.6% |
28.5% |
31.5% |
26.8% |
| General and administrative expense ratio
(8) |
4.5% |
0.3% |
0.3% |
2.9% |
| Combined ratio (9) |
98.0% |
97.0% |
96.8% |
98.2% |
| |
|
|
|
|
| |
|
|
|
|
| |
|
|
|
|
| For the Three Months Ended September
30, 2011 |
Diversified
Reinsurance |
AmTrust Quota Share
Reinsurance |
ACAC Quota
Share |
Total |
| Net premiums written |
$ 188,652 |
$ 173,502 |
$ 66,432 |
$ 428,586 |
| Net premiums earned |
$ 197,803 |
$ 159,668 |
$ 62,806 |
$ 420,277 |
| Other insurance revenue |
4,530 |
-- |
-- |
4,530 |
| Net loss and loss adjustment expenses |
(123,267) |
(110,727) |
(40,510) |
(274,504) |
| Commissions and other acquisition
expenses |
(62,032) |
(44,845) |
(19,900) |
(126,777) |
| General and administrative expenses |
(8,468) |
(538) |
(408) |
(9,414) |
| Underwriting income |
$ 8,566 |
$ 3,558 |
$ 1,988 |
$ 14,112 |
| |
|
|
|
|
| Reconciliation to net income
attributable to Maiden common shareholders |
|
|
|
|
| Net investment income and realized and
unrealized gains (losses) on investment |
|
|
|
15,849 |
| Amortization of intangible assets |
|
|
|
(1,258) |
| Foreign exchange losses |
|
|
|
(1,103) |
| Interest and amortization expenses |
|
|
|
(8,178) |
| Other general and administrative
expenses |
|
|
|
(3,061) |
| Income tax expense |
|
|
|
(359) |
| Loss attributable to noncontrolling
interest |
|
|
|
2 |
| Net income attributable to Maiden
common shareholders |
|
|
|
$ 16,004 |
| |
|
|
|
|
| Net loss and loss adjustment expense
ratio (6) |
60.9% |
69.3% |
64.5% |
64.6% |
| Commission and other acquisition expense
ratio (7) |
30.7% |
28.1% |
31.7% |
29.8% |
| General and administrative expense ratio
(8) |
4.2% |
0.4% |
0.6% |
3.0% |
| Combined ratio (9) |
95.8% |
97.8% |
96.8% |
97.4% |
| |
|
|
|
|
| |
|
|
|
|
| (6) Calculated by dividing net
loss and loss adjustment expenses by net premiums earned and other
insurance revenue. |
| (7) Calculated by dividing
commission and other acquisition expenses by net premiums earned
and other insurance revenue. |
| (8) Calculated by dividing
general and administrative expenses by net premiums earned and
other insurance revenue. |
| (9) Calculated by adding together
net loss and loss adjustment expense ratio, commission and other
acquisition expense ratio and general and administrative
expense ratio. |
| |
| |
| Maiden Holdings,
Ltd. |
| Supplemental Financial
Data - Segment Information |
| (in thousands
(000's)) |
|
(Unaudited) |
| |
|
|
|
|
| For the Nine Months Ended September
30, 2012 |
Diversified
Reinsurance |
AmTrust Quota Share
Reinsurance |
ACAC Quota
Share |
Total |
| Net premiums written |
$ 626,220 |
$ 607,902 |
$ 224,518 |
$ 1,458,640 |
| Net premiums earned |
$ 603,613 |
$ 512,988 |
$ 207,984 |
$ 1,324,585 |
| Other insurance revenue |
9,650 |
-- |
-- |
9,650 |
| Net loss and loss adjustment expenses |
(412,437) |
(350,553) |
(134,508) |
(897,498) |
| Commissions and other acquisition
expenses |
(159,895) |
(142,284) |
(65,665) |
(367,844) |
| General and administrative expenses |
(31,849) |
(1,444) |
(566) |
(33,859) |
| Underwriting income |
$ 9,082 |
$ 18,707 |
$ 7,245 |
$ 35,034 |
| |
|
|
|
|
| Reconciliation to net income
attributable to Maiden common shareholders |
|
|
|
|
| Net investment income and realized gains on
investment |
|
|
|
60,908 |
| Amortization of intangible assets |
|
|
|
(3,271) |
| Foreign exchange gains |
|
|
|
1,318 |
| Interest and amortization expenses |
|
|
|
(26,815) |
| Other general and administrative
expenses |
|
|
|
(8,758) |
| Income tax expense |
|
|
|
(1,498) |
| Income attributable to noncontrolling
interest |
|
|
|
(81) |
| Net income attributable to Maiden
common shareholders |
|
|
|
$ 56,837 |
| |
|
|
|
|
| Net loss and loss adjustment expense ratio
(6) |
67.3% |
68.3% |
64.7% |
67.3% |
| Commission and other acquisition expense
ratio (7) |
26.1% |
27.7% |
31.6% |
27.6% |
| General and administrative expense ratio
(8) |
5.1% |
0.4% |
0.2% |
3.1% |
| Combined ratio (9) |
98.5% |
96.4% |
96.5% |
98.0% |
| |
|
|
|
|
| |
|
|
|
|
| For the Nine Months Ended September
30, 2011 |
Diversified
Reinsurance |
AmTrust Quota Share
Reinsurance |
ACAC Quota
Share |
Total |
| Net premiums written |
$ 605,490 |
$ 516,665 |
$ 192,897 |
$ 1,315,052 |
| Net premiums earned |
$ 542,325 |
410,441 |
181,829 |
$ 1,134,595 |
| Other insurance revenue |
11,364 |
-- |
-- |
11,364 |
| Net loss and loss adjustment expenses |
(349,999) |
(279,006) |
(117,280) |
(746,285) |
| Commissions and other acquisition
expenses |
(161,709) |
(120,198) |
(57,766) |
(339,673) |
| General and administrative expenses |
(24,805) |
(1,802) |
(1,423) |
(28,030) |
| Underwriting income |
$ 17,176 |
$ 9,435 |
$ 5,360 |
$ 31,971 |
| |
|
|
|
|
| Reconciliation to net income
attributable to Maiden common shareholders |
|
|
|
|
| Net investment income and realized and
unrealized gains (losses) on investment |
|
|
|
55,446 |
| Amortization of intangible assets |
|
|
|
(3,775) |
| Foreign exchange gains |
|
|
|
898 |
| Interest and amortization expenses |
|
|
|
(26,588) |
| Accelerated amortization of junior
subordinated debt discount and issuance cost |
|
|
|
(20,313) |
| Junior subordinated debt repurchase
expense |
|
|
|
(15,050) |
| Other general and administrative
expenses |
|
|
|
(9,577) |
| Income tax expense |
|
|
|
(2,037) |
| Loss attributable to noncontrolling
interest |
|
|
|
5 |
| Net income attributable to Maiden
common shareholders |
|
|
|
$ 10,980 |
| |
|
|
|
|
| Net loss and loss adjustment expense
ratio (6) |
63.2% |
68.0% |
64.5% |
65.1% |
| Commission and other acquisition expense
ratio (7) |
29.2% |
29.3% |
31.8% |
29.6% |
| General and administrative expense ratio
(8) |
4.5% |
0.4% |
0.8% |
3.3% |
| Combined ratio (9) |
96.9% |
97.7% |
97.1% |
98.0% |
| |
|
|
|
|
| |
|
|
|
|
| (6) Calculated by dividing net
loss and loss adjustment expenses by net premiums earned and other
insurance revenue. |
| (7) Calculated by dividing
commission and other acquisition expenses by net premiums earned
and other insurance revenue. |
| (8) Calculated by dividing
general and administrative expenses by net premiums earned and
other insurance revenue. |
| (9) Calculated by adding together
net loss and loss adjustment expense ratio, commission and other
acquisition expense 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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