A.M. Best Affirms Ratings of Maiden Holdings, Ltd. and Its Subsidiaries
May 24 2013 - 12:26PM
Business Wire
A.M. Best Co. has affirmed the financial strength rating
(FSR) of A- (Excellent) and issuer credit ratings (ICR) of “a-” of
the property/casualty subsidiaries of Maiden Holdings, Ltd.
(Maiden Holdings) (Hamilton, Bermuda) [NASDAQ: MHLD], also known as
Maiden Group (Maiden). Concurrently, A.M. Best has affirmed
the ICR of “bbb-” of Maiden Holdings and the debt rating of “bb” on
its preferred stock. Additionally, A.M. Best has affirmed the ICR
and senior debt ratings of “bbb-” of Maiden Holdings North
America, Ltd. (Maiden NA) (Delaware), a direct, wholly owned
subsidiary of Maiden Holdings. Maiden NA’s senior notes are fully
and unconditionally guaranteed by Maiden Holdings. The outlook for
all ratings is stable. (See below for a detailed listing of
companies and ratings.)
The ratings reflect Maiden’s consistently profitable
underwriting and operating performance, along with its solid
risk-adjusted capitalization, in part due to capital contributions
from Maiden Holdings, and the operational benefits that Maiden
derives as a quota share partner with AmTrust Financial
Services, Inc.’s (AFSI) Bermuda reinsurance subsidiary,
AmTrust International Insurance, Ltd., (AII) and American
Capital Acquisition Corp (ACAC).
Partially offsetting these positive rating factors are the
execution risk faced by Maiden in achieving its business plans, the
continuing competitive environment in its core reinsurance markets
and its client concentration, as AFSI and ACAC account for
approximately 60% of the group’s total gross premiums. Maiden
Holdings’ adjusted debt-to-total capital, excluding accumulated
other comprehensive income of 24.7% and adjusted debt-to-total
tangible capital, excluding accumulated other comprehensive income
of 26.8% at December 31, 2012 were within A.M. Best’s guidelines
for the company’s ratings. In addition, Maiden Holdings’ interest
coverage ratio remains adequate for its ratings.
Key rating factors that may lead to positive rating actions
include the organization producing operating results that exceed
its peers for an extended period, along with the strengthening of
its risk-adjusted capitalization. However, factors that may lead to
negative rating actions include a trend of increasingly
deteriorating underwriting and operating performance to a level
below the group’s peers or an erosion of surplus to such an extent
to cause a significant decline in risk-adjusted capitalization.
The FSR of A- (Excellent) and ICRs of “a-” have been affirmed
for the following property/casualty subsidiaries of Maiden
Holdings, Ltd.:
- Maiden Insurance Company
Ltd.
- Maiden Reinsurance Company
- Maiden Specialty Insurance
Company
The following debt ratings have been affirmed:
Maiden Holdings, Ltd.—
-- “bb” on $150 million 8.25% preferred stock
Maiden Holdings North America, Ltd. (guaranteed by Maiden
Holdings, Ltd.)—
-- “bbb-” on $100 million 8.0% senior unsecured notes, due
2042
-- “bbb-” on $107 million 8.25% senior unsecured notes, due
2041
The following indicative ratings have been affirmed for
securities under the shelf registration
Maiden Holdings North America, Ltd. (guaranteed by Maiden
Holdings, Ltd.)—
-- “bbb-” on senior unsecured debt
-- “bb+” on subordinated debt
-- “bb” on junior subordinated debt
-- “bb” on preferred stock
The methodology used in determining these ratings is Best’s
Credit Rating Methodology, which provides a comprehensive
explanation of A.M. Best’s rating process and contains the
different rating criteria employed in the rating process. Best’s
Credit Rating Methodology can be found at
www.ambest.com/ratings/methodology.
A.M. Best Company is the world's oldest and most
authoritative insurance rating and information source. For more
information, visit www.ambest.com.
Copyright © 2013 by A.M. Best Company,
Inc. ALL RIGHTS RESERVED.
Maiden (NASDAQ:MHLD)
Historical Stock Chart
From Jun 2024 to Jul 2024
Maiden (NASDAQ:MHLD)
Historical Stock Chart
From Jul 2023 to Jul 2024