Highlights for the quarter ended December 31, 2013
- Annualized operating return on common equity(1) of 11.3%
compared to (4.6)% in the fourth quarter of 2012, which was
impacted by Superstorm Sandy;
- Record net operating earnings(1) of $23.3 million, or $0.30 per
diluted common share compared with a loss of $10.1 million, or
$0.14 per diluted common share in the fourth quarter of 2012;
- Net premiums written increased 0.7% to $445.9 million for the
fourth quarter of 2013 versus the same period last year; excluding
the divested property E&S business and National General Quota
Share, the underlying growth rate was 21.6%;
- Combined ratio(11) of 97.3% compared to 103.7% in the fourth
quarter of 2012;
- Net investment income was $25.4 million, an increase of 20.2%
compared to the fourth quarter of 2012;
- Book value per common share(4) of $11.14, down 1.8% versus
September 30, 2013 reflecting unrealized bond value movements
in the quarter;
- In October, Maiden issued $165 million of 7.25% mandatory
convertible preference shares to support the continuing growth of
its reinsurance business; and
- In November, Maiden issued $152.5 million of 7.75% senior notes
due December 1, 2043 in order to pre-fund the repurchase of the
Company's previously outstanding 14% coupon trust preferred
securities, which it completed on January 15, 2014.
Highlights for the year ended December 31, 2013
- Annualized operating return on common equity(1) of 10.5%
compared to 5.9% in 2012;
- Record net operating earnings(1) of $87.5 million, or $1.18 per
diluted common share compared with $48.5 million, or $0.66 per
diluted common share in 2012;
- Net premiums written increased 10.3% to $2.1 billion from $1.9
billion the same period last year; excluding the divested property
E&S business and National General Quota Share, the
underlying growth rate was 21.9%;
- Combined ratio(11) of 97.5% compared to 99.5% in 2012;
- Net investment income was $91.4 million, an increase of 12.5%
compared to 2012; and
- Total investments increased 20.8% in 2013 to $3.2 billion.
Maiden Holdings, Ltd. (Nasdaq:MHLD) ("Maiden" or "the Company")
today reported fourth quarter 2013 net operating earnings(1)
of $23.3 million, or $0.30 per diluted common share compared
with a loss of $10.1 million, or $0.14 per diluted common share in
the fourth quarter of 2012. Net income attributable to Maiden
common shareholders totaled $20.8 million, or $0.27 per diluted
common share in the fourth quarter of 2013, compared to a net loss
attributable to Maiden common shareholders of $10.3 million or
$0.14 per share in the fourth quarter of 2012.
Commenting on the Company's results, Art Raschbaum, Chief
Executive Officer of Maiden, said: "The strong operating results in
the fourth quarter and throughout 2013 reflect a focus on continued
underwriting discipline, a significant level of organic growth
despite the termination of the NGHC quota share, and steady growth
in invested assets. We are gratified by the continued growth
in new client relationships as well as the expansion of many
existing client relationships, a testament to the Maiden team's
strong client focus. Importantly, we believe that
Maiden is well positioned for future growth and profitability after
completing two strategic capital market transactions in the fourth
quarter, as well as the repurchase of all of our outstanding 14%
TRUPs in January 2014, which significantly decreases our forward
cost of capital in 2014 and beyond. Continued growth in
invested assets, a lower cost of capital, the Company's continued
focus on operating efficiency and underwriting discipline, and a
highly differentiated business model should enable us to further
enhance operating performance in 2014 and beyond. The entire
Maiden team looks forward to meeting the challenges of 2014 with an
emphasis on continuing to provide outstanding support for our
clients, while delivering value to our shareholders."
Results for the quarter ended December 31, 2013
Net operating earnings(1) for the fourth quarter of 2013 were
$23.3 million, or $0.30 per diluted common share compared with a
loss of $10.1 million, or $0.14 per diluted common share in the
comparative quarter in 2012. Net income attributable to Maiden
common shareholders was $20.8 million, or $0.27 per diluted common
share in the fourth quarter of 2013, compared with a net loss of
$10.3 million, or $0.14 per diluted common share in the fourth
quarter of 2012.
In the fourth quarter of 2013, net premiums written totaled
$445.9 million, an increase of 0.7% compared to the fourth quarter
of 2012. The Diversified Reinsurance segment's net premiums
written were up 24.8% to $173.6 million versus the fourth quarter
of 2012. The growth in the Diversified segment's premium was
the result of organic growth of existing client accounts, as well
as the addition of new client relationships. In the AmTrust
Quota Share Reinsurance segment, net premiums written increased by
18.3% to $274.9 million compared to the fourth quarter of 2012 and
was driven primarily by continued rate increases in lines of
business such as worker's compensation and new business
growth. As of August 1, 2013, Maiden and National General
Holdings Corporation ("NGHC") mutually terminated their quota share
reinsurance relationship. In the fourth quarter of 2012 Maiden
wrote net premiums of $71.1 million in the NGHC Quota
Share. Excluding the divested E&S property business and
the terminated NGHC Quota Share, Maiden's net premiums written in
the fourth quarter of 2013 increased 21.6% compared to the fourth
quarter of 2012.
Net premiums earned of $491.0 million increased 2.5%, or $11.9
million compared to the fourth quarter of 2012. Earned
premiums decreased 1.7% in the Diversified Reinsurance segment to
$188.5 million compared to the fourth quarter of 2012 reflecting
underwriting actions taken in 2013 and the sale of the Company's
E&S property business. The AmTrust Quota Share Reinsurance
segment earned premiums were up 22.8% to $263.8 million compared to
the three months ended December 31, 2012. The NGHC Quota Share
segment was $38.7 million in the fourth quarter of 2013, down 46.7%
compared to the fourth quarter of 2012.
Net investment income of $25.4 million in the fourth quarter of
2013 increased 20.2% compared to the fourth quarter of
2012. Total investments of $3.2 billion increased $545.6
million or 20.8% versus December 31, 2012. The average
yield on the fixed income portfolio (excluding cash) is 3.48% with
an average duration of 4.64 years.
Net loss and loss adjustment expenses of $329.8 million were
down $35.1 million compared to the fourth quarter of 2012, which
was negatively impacted by Superstorm Sandy. The loss
ratio(7) decreased by 8.8 percentage points to 66.8% versus the
fourth quarter of 2012.
Commission and other acquisition expenses including general and
administrative expenses increased $15.6 million to $151.0 million
in the fourth quarter of 2013, compared to the year ago quarter,
while the total expense ratio(10) rose to 30.5% in the fourth
quarter of 2013 compared with 28.1% in the same quarter last year
largely reflecting a change in business mix. General and
administrative expenses for the fourth quarter of 2013 totaled
$14.5 million compared with $11.2 million in the fourth quarter of
2012. The general and administrative expense ratio(9) increased to
2.9% in the fourth quarter of 2013 versus 2.4% in the fourth
quarter of 2012 largely reflecting increased incentive plan funding
driven by improved results.
The combined ratio(11) for the fourth quarter of 2013 totaled
97.3% compared with 103.7% in the fourth quarter of 2012.
Total assets increased 13.9% to $4.7 billion at December 31,
2013 compared to $4.1 billion at year-end 2012.
Shareholders' equity was $1.1 billion, up 10.7% compared to
December 31, 2012. Book value per common share was
$11.14 at the end of the fourth quarter of 2013 or 1.8% lower than
at September 30, 2013.
During the fourth quarter of 2013, the Board of Directors
declared dividends of $0.11 per common share, $0.515625 per Series
A preference share and $0.745139 per Series B preference share.
Results for the year ended December 31, 2013
Net income attributable to Maiden common shareholders for the
year ended December 31, 2013 was $87.9 million compared to net
income of $46.5 million in 2012. Net operating
earnings(1) for 2013 were $87.5 million, or $1.18 per diluted
common share compared to $48.5 million or $0.66 per diluted common
share in 2012. Annualized operating return on common
equity(1) for the year ended December 31, 2013 was 10.5% compared
to 5.9% for 2012.
Net premiums written rose 10.3%, or $195.0 million to $2.1
billion in 2013 compared to 2012. In 2013, net premiums
written in the Diversified Reinsurance segment of $761.8 million
were 0.5% lower than in 2012. Excluding the divested E&S
property business, Diversified Reinsurance segment premium grew by
2.4% over 2012. Net premiums written for the AmTrust Quota
Share Reinsurance segment were $1.2 billion, up 39.2% compared to
2012. Net premiums written for the NGHC Quota Share were
$164.6 million in 2013, which is 44.3% lower than the $295.6
million written in 2012. Excluding the divested E&S
property business and the terminated NGHC Quota Share, Maiden's net
premiums written increased 21.9% in 2013 compared to 2012.
Net premiums earned in 2013 were $2.0 billion, an increase of
10.9% or $197.1 million compared to 2012. Net premiums
earned in the Diversified Reinsurance segment were down 4.2% to
$762.1 million for 2013 compared to the same period in
2012. The AmTrust Quota Share Reinsurance segment net premiums
earned of $988.9 million increased 35.9% in 2013 compared to 2012.
The NGHC Quota Share segment net premiums earned totaled $249.9
million in 2013, down 11% compared to 2012.
Net investment income in 2013 was $91.4 million, up 12.5%
compared to the same period in 2012. The year-over-year growth
in net investment income resulted from an increase in total
investments, which grew by 20.8% at the end of 2013 compared to the
end of 2012.
Net loss and loss adjustment expenses for 2013 were $1.3
billion, up $87.3 million compared to the same period in
2012. The loss ratio(7) decreased 2.5 percentage points
to 67.0% versus 69.5% in 2012.
The combined ratio(11) for 2013 was 97.5%, which improved 2.0
percentage points compared to the combined ratio(11) for 2012 of
99.5%. These results include a general and administrative
expense ratio(9) of 2.9% for 2013 and 2012.
(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)(11) Loss ratio, general and administrative expense
ratio, 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
these 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 at least five minutes prior to the start time:
U.S. Callers: 1.877.734.5373 Outside U.S. Callers:
1.973.200.3059 Passcode: 53223860 Webcast:
http://www.maiden.bm/presentations_conferences
A replay of the conference call will be available beginning at
11:30 a.m. ET on February 20, 2014 through midnight on February 27,
2014. To listen to the replay, please dial toll free:
1.855.859.2056 (U.S. Callers) or toll: 1.404.537.3406 (callers
outside the U.S.) and enter the Passcode: 53223860; 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 December 31, 2013, Maiden had $4.7 billion in
assets and shareholders' equity of $1.1 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, 2012 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) |
|
|
|
|
|
|
|
December 31, 2013 |
December 31, 2012 |
|
(Unaudited) |
(Audited) |
Assets |
|
|
Fixed maturities, available-for-sale, at fair
value (Amortized cost 2013: $3,127,792; 2012: $2,475,202) |
$ 3,162,067 |
$ 2,618,697 |
Other investments, at fair value (Cost 2013:
$4,522; 2012: $2,599) |
5,092 |
2,901 |
Total investments |
3,167,159 |
2,621,598 |
Cash and cash equivalents |
139,833 |
81,543 |
Restricted cash and cash equivalents |
77,360 |
132,327 |
Accrued investment income |
25,238 |
21,007 |
Reinsurance balances receivable,
net |
560,145 |
522,614 |
Prepaid reinsurance premiums |
39,186 |
38,725 |
Reinsurance recoverable on unpaid losses |
84,036 |
110,858 |
Loan to related party |
167,975 |
167,975 |
Deferred commission and other acquisition
expenses |
304,908 |
270,669 |
Goodwill and intangible assets, net |
90,613 |
94,393 |
Other assets |
56,926 |
76,454 |
Total
Assets |
$ 4,713,379 |
$ 4,138,163 |
Liabilities
and Equity |
|
|
Liabilities |
|
|
Reserve for loss and loss adjustment
expenses |
$ 1,957,835 |
$ 1,740,281 |
Unearned premiums |
1,034,754 |
936,497 |
Accrued expenses and other liabilities |
110,114 |
111,957 |
Senior notes |
360,000 |
207,500 |
Junior subordinated debt |
126,381 |
126,317 |
Total
Liabilities |
3,589,084 |
3,122,552 |
|
|
|
Equity |
|
|
Preference Shares |
315,000 |
150,000 |
Common shares |
736 |
733 |
Additional paid-in capital |
574,522 |
575,869 |
Accumulated other comprehensive
income |
25,784 |
141,130 |
Retained earnings |
211,602 |
151,308 |
Treasury stock, at cost |
(3,801) |
(3,801) |
Total Maiden Shareholders'
Equity |
1,123,843 |
1,015,239 |
Noncontrolling interest in
subsidiaries |
452 |
372 |
Total
Equity |
1,124,295 |
1,015,611 |
Total Liabilities
and Equity |
$ 4,713,379 |
$ 4,138,163 |
|
|
|
|
|
|
Book value per common share
(4) |
$ 11.14 |
$ 11.96 |
|
|
|
Common shares
outstanding |
72,633,561 |
72,343,947 |
|
|
|
|
Maiden Holdings,
Ltd. |
Income
Statement |
(in thousands (000's),
except per share data) |
(Unaudited) |
|
|
|
|
|
|
For the Three |
For the Three |
For the Year |
For the Year |
|
Months Ended |
Months Ended |
Ended December |
Ended December |
|
December 31,
2013 |
December 31,
2012 |
31, 2013 |
31, 2012 |
|
|
|
|
|
Revenues: |
|
|
|
|
Gross premiums written |
$ 462,067 |
$ 464,037 |
$ 2,204,159 |
$ 2,000,992 |
|
|
|
|
|
Net premiums written |
$ 445,875 |
$ 442,645 |
$ 2,096,301 |
$ 1,901,285 |
Change in unearned premiums |
45,171 |
36,550 |
(95,414) |
(97,505) |
Net premiums
earned |
491,046 |
479,195 |
2,000,887 |
1,803,780 |
Other insurance revenue |
2,966 |
3,240 |
14,232 |
12,890 |
Net investment income |
25,375 |
21,116 |
91,352 |
81,188 |
Net realized (losses) gains on
investment |
(122) |
1,071 |
3,585 |
1,907 |
Total
revenues |
519,265 |
504,622 |
2,110,056 |
1,899,765 |
Expenses: |
|
|
|
|
Net loss and loss adjustment
expenses |
329,759 |
364,850 |
1,349,630 |
1,262,348 |
Commission and other acquisition
expenses |
136,482 |
124,187 |
556,578 |
492,031 |
General and administrative expenses |
14,498 |
11,187 |
58,661 |
53,804 |
Total
expenses |
480,739 |
500,224 |
1,964,869 |
1,808,183 |
|
|
|
|
|
Income from operations
(2) |
38,526 |
4,398 |
145,187 |
91,582 |
|
|
|
|
|
Other expenses |
|
|
|
|
Amortization of intangible assets |
(945) |
(1,091) |
(3,780) |
(4,362) |
Foreign exchange and other gains |
236 |
320 |
2,809 |
1,638 |
Interest and amortization expenses |
(10,786) |
(9,569) |
(39,497) |
(36,384) |
Total other
expenses |
(11,495) |
(10,340) |
(40,468) |
(39,108) |
|
|
|
|
|
Income (loss) before income
taxes |
27,031 |
(5,942) |
104,719 |
52,474 |
Income taxes: |
|
|
|
|
Current tax expense |
217 |
140 |
873 |
1,020 |
Deferred tax expense |
429 |
575 |
990 |
1,193 |
Income tax expense |
646 |
715 |
1,863 |
2,213 |
|
|
|
|
|
Net income (loss) |
26,385 |
(6,657) |
102,856 |
50,261 |
Less: income attributable to noncontrolling
interest |
(26) |
(26) |
(121) |
(107) |
Net income (loss) attributable to
Maiden |
26,359 |
(6,683) |
102,735 |
50,154 |
Dividends on preference shares |
(5,553) |
(3,644) |
(14,834) |
(3,644) |
Net income (loss) attributable to
Maiden common shareholders |
$ 20,806 |
$ (10,327) |
$ 87,901 |
$ 46,510 |
Net operating earnings (loss)
attributable to Maiden common shareholders (1) |
$ 23,281 |
$ (10,052) |
$ 87,492 |
$ 48,520 |
|
|
|
|
|
Basic earnings (loss) per common
share attributable to Maiden shareholders (6) |
$ 0.29 |
$ (0.14) |
$ 1.21 |
$ 0.64 |
Diluted earnings (loss) per common
share attributable to Maiden shareholders (6) |
$ 0.27 |
$ (0.14) |
$ 1.18 |
$ 0.64 |
Basic operating earnings (loss) per
common share attributable to Maiden shareholders (6) |
$ 0.32 |
$ (0.14) |
$ 1.21 |
$ 0.67 |
Diluted operating earnings (loss) per
common share attributable to Maiden shareholders (6) |
$ 0.30 |
$ (0.14) |
$ 1.18 |
$ 0.66 |
|
|
|
|
|
Dividends declared per common
share |
$ 0.11 |
$ 0.09 |
$ 0.38 |
$ 0.33 |
|
|
|
|
|
Weighted average number of common
shares - basic |
72,615,033 |
72,296,708 |
72,510,361 |
72,263,022 |
Adjusted weighted average number of
common shares and assumed conversions - diluted |
84,521,981 |
73,154,424 |
76,417,839 |
73,105,531 |
|
|
|
|
|
Net loss and loss adjustment expense
ratio (7) |
66.8% |
75.6% |
67.0% |
69.5% |
Commission and other acquisition
expense ratio (8) |
27.6% |
25.7% |
27.6% |
27.1% |
General and administrative
expense ratio (9) |
2.9% |
2.4% |
2.9% |
2.9% |
Expense ratio (10) |
30.5% |
28.1% |
30.5% |
30.0% |
Combined ratio (11) |
97.3% |
103.7% |
97.5% |
99.5% |
Annualized return on common
equity |
10.1% |
(4.7%) |
10.5% |
5.7% |
Annualized operating return on common
equity |
11.3% |
(4.6%) |
10.5% |
5.9% |
|
|
|
|
|
|
|
|
|
|
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 Year Ended |
For the Year Ended |
|
Ended December 31,
2013 |
Ended December 31,
2012 |
December 31,
2013 |
December 31,
2012 |
|
|
|
|
|
Reconciliation of net income (loss)
attributable to Maiden common shareholders to net operating
earnings (loss): |
|
|
|
|
Net income (loss) attributable to Maiden
common shareholders |
$ 20,806 |
$ (10,327) |
$ 87,901 |
$ 46,510 |
Add (subtract) |
|
|
|
|
Net realized losses (gains) on
investment |
122 |
(1,071) |
(3,585) |
(1,907) |
Foreign exchange and other
gains |
(236) |
(320) |
(2,809) |
(1,638) |
Amortization of intangible
assets |
945 |
1,091 |
3,780 |
4,362 |
Interest expense incurred
related to 7.75% senior notes prior to actual redemption of the
junior subordinated debt |
1,215 |
-- |
1,215 |
-- |
Non-cash deferred tax
expense |
429 |
575 |
990 |
1,193 |
Net operating earnings (loss) attributable to
Maiden common shareholders (1) |
$ 23,281 |
$ (10,052) |
$ 87,492 |
$ 48,520 |
|
|
|
|
|
Operating earnings (loss) per common
share attributable to Maiden shareholders: |
|
|
|
|
|
|
|
|
|
Basic earnings (loss) per common share
attributable to Maiden shareholders (6) |
$ 0.32 |
$ (0.14) |
$ 1.21 |
$ 0.67 |
Diluted earnings (loss) per common share
attributable to Maiden shareholders (6) |
$ 0.30 |
$ (0.14) |
$ 1.18 |
$ 0.66 |
|
|
|
|
|
Reconciliation of net income (loss)
attributable to Maiden to income from operations: |
|
|
|
|
Net income (loss) attributable to
Maiden |
$ 26,359 |
$ (6,683) |
$ 102,735 |
$ 50,154 |
Add (subtract) |
|
|
|
|
Foreign exchange and other
gains |
(236) |
(320) |
(2,809) |
(1,638) |
Amortization of intangible
assets |
945 |
1,091 |
3,780 |
4,362 |
Interest and amortization
expenses |
10,786 |
9,569 |
39,497 |
36,384 |
Income tax expense |
646 |
715 |
1,863 |
2,213 |
Income attributable to
noncontrolling interest |
26 |
26 |
121 |
107 |
Income from operations (2) |
38,526 |
4,398 |
145,187 |
91,582 |
|
|
|
|
|
|
December 31, 2013 |
December 31, 2012 |
|
|
Investable assets: |
|
|
|
|
Total investments |
$ 3,167,159 |
$ 2,621,598 |
|
|
Cash and cash equivalents |
139,833 |
81,543 |
|
|
Restricted cash and cash equivalents |
77,360 |
132,327 |
|
|
Funds withheld (3) |
-- |
26,494 |
|
|
Loan to related party |
167,975 |
167,975 |
|
|
Total investable assets (3) |
$ 3,552,327 |
$ 3,029,937 |
|
|
|
|
|
|
|
|
December 31, 2013 |
December 31, 2012 |
|
|
Capital: |
|
|
|
|
Senior notes |
$ 360,000 |
$ 207,500 |
|
|
Junior subordinated debt |
126,381 |
126,317 |
|
|
Total Maiden shareholders' equity |
1,123,843 |
1,015,239 |
|
|
Total capital (5) |
$ 1,610,224 |
$ 1,349,056 |
|
|
|
|
|
|
|
|
(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 and other
gains and losses, amortization of intangible assets, interest
expense incurred related to 7.75% senior notes prior to actual
redemption of the junior subordinated debt 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 and other gains
and losses, amortization of intangible assets, interest and
amortization expenses, 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 by total common
shares outstanding. |
|
(5) Capital is the total of the
Company's senior notes, junior subordinated debt and Maiden
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 Share |
|
|
For the Three Months Ended December
31, 2013 |
Reinsurance |
Reinsurance |
NGHC Quota
Share |
Total |
Net premiums written |
$ 173,609 |
$ 274,932 |
$ (2,666) |
$ 445,875 |
Net premiums earned |
$ 188,512 |
$ 263,800 |
$ 38,734 |
$ 491,046 |
Other insurance revenue |
2,966 |
-- |
-- |
2,966 |
Net loss and loss adjustment expenses |
(129,861) |
(173,779) |
(26,119) |
(329,759) |
Commissions and other acquisition
expenses |
(45,911) |
(78,360) |
(12,211) |
(136,482) |
General and administrative expenses |
(10,692) |
(494) |
(177) |
(11,363) |
Underwriting income |
$ 5,014 |
$ 11,167 |
$ 227 |
$ 16,408 |
|
|
|
|
|
Reconciliation to net income
attributable to Maiden common shareholders |
|
|
|
|
Net investment income and realized losses on
investment |
|
|
|
25,253 |
Amortization of intangible assets |
|
|
|
(945) |
Foreign exchange and other gains |
|
|
|
236 |
Interest and amortization expenses |
|
|
|
(10,786) |
Other general and administrative
expenses |
|
|
|
(3,135) |
Income tax expense |
|
|
|
(646) |
Income attributable to noncontrolling
interest |
|
|
|
(26) |
Dividends on preference shares |
|
|
|
(5,553) |
Net income attributable to Maiden
common shareholders |
|
|
|
$ 20,806 |
|
|
|
|
|
Net loss and loss adjustment expense ratio
(7) |
67.8% |
65.9% |
67.4% |
66.8% |
Commission and other acquisition expense
ratio (8) |
24.0% |
29.7% |
31.5% |
27.6% |
General and administrative expense ratio
(9) |
5.6% |
0.2% |
0.5% |
2.9% |
Combined ratio (11) |
97.4% |
95.8% |
99.4% |
97.3% |
|
|
|
|
|
|
|
|
|
|
|
Diversified |
AmTrust Quota Share |
|
|
For the Three Months Ended December
31, 2012 |
Reinsurance |
Reinsurance |
NGHC Quota
Share |
Total |
Net premiums written |
$ 139,073 |
$ 232,444 |
$ 71,128 |
$ 442,645 |
Net premiums earned |
$ 191,728 |
$ 214,793 |
$ 72,674 |
$ 479,195 |
Other insurance revenue |
3,240 |
-- |
-- |
3,240 |
Net loss and loss adjustment expenses |
(171,533) |
(144,080) |
(49,237) |
(364,850) |
Commissions and other acquisition
expenses |
(43,314) |
(58,262) |
(22,611) |
(124,187) |
General and administrative expenses |
(9,102) |
(505) |
(171) |
(9,778) |
Underwriting (loss)
income |
$ (28,981) |
$ 11,946 |
$ 655 |
$ (16,380) |
|
|
|
|
|
Reconciliation to net loss
attributable to Maiden common shareholders |
|
|
|
|
Net investment income and realized gains on
investment |
|
|
|
22,187 |
Amortization of intangible assets |
|
|
|
(1,091) |
Foreign exchange gains |
|
|
|
320 |
Interest and amortization expenses |
|
|
|
(9,569) |
Other general and administrative
expenses |
|
|
|
(1,409) |
Income tax expense |
|
|
|
(715) |
Income attributable to noncontrolling
interest |
|
|
|
(26) |
Dividends on preference shares |
|
|
|
(3,644) |
Net loss attributable to Maiden
common shareholders |
|
|
|
$ (10,327) |
|
|
|
|
|
Net loss and loss adjustment expense ratio
(7) |
88.0% |
67.1% |
67.8% |
75.6% |
Commission and other acquisition expense
ratio (8) |
22.2% |
27.1% |
31.1% |
25.7% |
General and administrative expense ratio
(9) |
4.7% |
0.2% |
0.2% |
2.4% |
Combined ratio (11) |
114.9% |
94.4% |
99.1% |
103.7% |
|
|
|
|
|
|
Maiden Holdings,
Ltd. |
Supplemental Financial
Data - Segment Information |
(in thousands
(000's)) |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
Diversified |
AmTrust Quota Share |
|
|
For the Year Ended December 31,
2013 |
Reinsurance |
Reinsurance |
NGHC Quota
Share |
Total |
Net premiums written |
$ 761,773 |
$ 1,169,961 |
$ 164,567 |
$ 2,096,301 |
Net premiums earned |
$ 762,063 |
$ 988,900 |
$ 249,924 |
$ 2,000,887 |
Other insurance revenue |
14,232 |
-- |
-- |
14,232 |
Net loss and loss adjustment expenses |
(528,541) |
(652,561) |
(168,528) |
(1,349,630) |
Commissions and other acquisition
expenses |
(186,788) |
(291,559) |
(78,231) |
(556,578) |
General and administrative expenses |
(42,331) |
(1,992) |
(707) |
(45,030) |
Underwriting income |
$ 18,635 |
$ 42,788 |
$ 2,458 |
63,881 |
|
|
|
|
|
Reconciliation to net income
attributable to Maiden common shareholders |
|
|
|
|
Net investment income and realized gains on
investment |
|
|
|
94,937 |
Amortization of intangible assets |
|
|
|
(3,780) |
Foreign exchange and other gains |
|
|
|
2,809 |
Interest and amortization expenses |
|
|
|
(39,497) |
Other general and administrative
expenses |
|
|
|
(13,631) |
Income tax expense |
|
|
|
(1,863) |
Income attributable to noncontrolling
interest |
|
|
|
(121) |
Dividends on preference shares |
|
|
|
(14,834) |
Net income attributable to Maiden
common shareholders |
|
|
|
$ 87,901 |
|
|
|
|
|
Net loss and loss adjustment expense ratio
(7) |
68.1% |
66.0% |
67.4% |
67.0% |
Commission and other acquisition expense
ratio (8) |
24.1% |
29.5% |
31.3% |
27.6% |
General and administrative expense ratio
(9) |
5.4% |
0.2% |
0.3% |
2.9% |
Combined ratio (11) |
97.6% |
95.7% |
99.0% |
97.5% |
|
|
|
|
|
|
|
|
|
|
|
Diversified |
AmTrust Quota Share |
|
|
For the Year Ended December 31,
2012 |
Reinsurance |
Reinsurance |
NGHC Quota
Share |
Total |
Net premiums written |
$ 765,293 |
$ 840,346 |
$ 295,646 |
$ 1,901,285 |
Net premiums earned |
$ 795,341 |
$ 727,781 |
$ 280,658 |
$ 1,803,780 |
Other insurance revenue |
12,890 |
-- |
-- |
12,890 |
Net loss and loss adjustment expenses |
(583,970) |
(494,633) |
(183,745) |
(1,262,348) |
Commissions and other acquisition
expenses |
(203,209) |
(200,546) |
(88,276) |
(492,031) |
General and administrative expenses |
(40,951) |
(1,949) |
(737) |
(43,637) |
Underwriting (loss)
income |
$ (19,899) |
$ 30,653 |
$ 7,900 |
$ 18,654 |
|
|
|
|
|
Reconciliation to net income
attributable to Maiden common shareholders |
|
|
|
|
Net investment income and realized gains on
investment |
|
|
|
83,095 |
Amortization of intangible assets |
|
|
|
(4,362) |
Foreign exchange gains |
|
|
|
1,638 |
Interest and amortization expenses |
|
|
|
(36,384) |
Other general and administrative
expenses |
|
|
|
(10,167) |
Income tax expense |
|
|
|
(2,213) |
Income attributable to noncontrolling
interest |
|
|
|
(107) |
Dividends on preference shares |
|
|
|
(3,644) |
Net income attributable to Maiden
common shareholders |
|
|
|
$ 46,510 |
|
|
|
|
|
Net loss and loss adjustment expense ratio
(7) |
72.3% |
68.0% |
65.5% |
69.5% |
Commission and other acquisition expense
ratio (8) |
25.1% |
27.6% |
31.5% |
27.1% |
General and administrative expense ratio
(9) |
5.1% |
0.2% |
0.2% |
2.9% |
Combined ratio (11) |
102.5% |
95.8% |
97.2% |
99.5% |
|
|
|
|
|
(7) Calculated by dividing net loss and loss
adjustment expenses by the sum of net premiums earned and other
insurance revenue. |
(8) Calculated by dividing commission and
other acquisition expenses by the sum of net premiums earned and
other insurance revenue. |
(9) Calculated by dividing general and
administrative expenses by the sum of net premiums earned and other
insurance revenue. |
(10) Calculated by adding together the
commission and other acquisition expense ratio and general and
administrative expense ratio. |
(11) Calculated by adding together the net
loss and loss adjustment expense ratio and 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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