Highlights for the quarter ended
December 31, 2014
- Annualized operating return on common equity(1) of 15.1%
compared to 11.3% in the fourth quarter of 2013;
- Net operating earnings(1) of $34.6 million, or $0.44 per
diluted common share compared with net operating earnings of $23.3
million, or $0.30 per diluted common share in the fourth quarter of
2013;
- Net premiums written increased 35% to $601.9 million for the
fourth quarter of 2014 compared to the same period last year;
- Combined ratio(10) of 98.6% compared to 97.3% in the fourth
quarter of 2013;
- Record quarterly net investment income was $31.7 million, an
increase of 25.1% compared to the fourth quarter of 2013; and
- Book value per common share(4) of $12.69 increased 2.9% versus
September 30, 2014, reflecting retained earnings and increased
market values of the fixed income investment portfolio during the
fourth quarter of 2014.
Highlights for the year ended December 31,
2014
- Annualized operating return on common equity(1) of 13.6%
compared to 10.5% in 2013;
- Record net operating earnings(1) of $117.7 million, or $1.53
per diluted common share compared with $87.5 million, or $1.18 per
diluted common share in 2013;
- Net premiums written increased 17.3% to $2.5 billion versus
$2.1 billion in 2013; excluding the cancelled National General
Holdings Corporation ("NGHC") Quota Share, the underlying growth
rate was 27.3%;
- Combined ratio(10) of 98.0% compared to 97.5% in 2013;
- Record annual net investment income was $117.2 million, an
increase of 28.3% compared to 2013; and
- Book value per common share(4) of $12.69 increased 13.9%
compared to December 31, 2013 reflecting a significant contribution
from earnings and the increased market values of the fixed income
investment portfolio during the year.
Maiden Holdings, Ltd. (Nasdaq:MHLD) ("Maiden" or "the Company")
today reported record fourth quarter 2014 net operating earnings(1)
of $34.6 million, or $0.44 per diluted common share compared with
$23.3 million, or $0.30 per diluted common share in the fourth
quarter of 2013. In the fourth quarter of 2014, net income
attributable to Maiden common shareholders was $27.5 million
compared to net income attributable to Maiden common shareholders
of $20.8 million in the fourth quarter of 2013.
Commenting on the Company's results, Art Raschbaum, Chief
Executive Officer of Maiden, said: "In 2014 we continued to make
solid progress driving record operating income and improving
operating ROE, while increasing our active client count, expanding
existing client relationships and growing our invested asset base.
We are confident in our ability to further enhance our operating
performance going forward. Importantly, our disciplined specialist
focus on developing a low volatility underwriting portfolio while
serving the reinsurance capital needs of regional and specialty
insurers remains unchanged."
Results for the quarter ended December 31,
2014
Maiden reported net operating earnings(1) for the fourth quarter
of 2014 of $34.6 million, or $0.44 per diluted common share
compared with $23.3 million, or $0.30 per diluted common share in
the fourth quarter of 2013. Net income attributable to Maiden
common shareholders was $27.5 million compared to net income
attributable to Maiden common shareholders of $20.8 million in the
fourth quarter of 2013.
In the fourth quarter of 2014, net premiums written totaled
$601.9 million, an increase of 35.0% compared to the fourth quarter
of 2013. The Diversified Reinsurance segment's net premiums
written totaled $168.4 million, a decrease of 3.1% versus the
fourth quarter of 2013. The Diversified Reinsurance segment's
premium levels were down slightly due to one-time increases
experienced in Europe due to promotional offers in the comparative
period in 2013. In the AmTrust Reinsurance segment, net
premiums written increased by 57.7% to $433.5 million compared to
the fourth quarter of 2013, as a result of continued rate increases
in lines of business such as worker's compensation, as well as new
business from the Tower Group renewal rights transaction.
Net premiums earned of $608.2 million increased 23.9% compared
to the fourth quarter of 2013. In the Diversified Reinsurance
segment, net premiums earned increased 16.4% to $218.8 million
compared to the fourth quarter of 2013. The AmTrust Reinsurance
segment earned premiums were up 47.6% to $389.4 million compared to
the fourth quarter of 2013.
Net loss and loss adjustment expenses of $396.0 million were up
20.1% compared to the fourth quarter of 2013. The loss
ratio(6) of 64.8% was lower than the 66.8% reported in the fourth
quarter of 2013.
Commission and other acquisition expenses, including general and
administrative expenses, increased $55.7 million to $206.7 million
in the fourth quarter of 2014, compared to the same quarter a year
ago. The total expense ratio(9) rose to 33.8% for the fourth
quarter of 2014 compared with 30.5% in the same quarter last year,
due to a change in business mix. General and administrative
expenses for the fourth quarter of 2014 totaled $17.1 million
compared with $14.5 million in the fourth quarter of 2013. The
general and administrative expense ratio(8) was 2.8% in the fourth
quarter of 2014, a decrease compared to 2.9% reported in the fourth
quarter of 2013.
The combined ratio(10) for the fourth quarter of 2014 totaled
98.6% compared with 97.3% in the fourth quarter of 2013. The
Diversified Reinsurance segment combined ratio was 99.7% in the
fourth quarter of 2014, up from 97.0% in the fourth quarter of
2013. The higher Diversified Reinsurance segment combined
ratio is primarily driven by higher than expected loss activity in
Maiden's facultative commercial auto and excess property treaty
lines and to a lesser extent a change in business
mix. Excluding the impact of the facultative commercial auto
and excess property treaty loss activity, the fourth quarter 2014
Diversified Reinsurance segment combined ratio would have been
97.6%. The Company continues to take underwriting actions as
appropriate, with some accounts being restructured or
terminated. The AmTrust Reinsurance segment reported a
combined ratio of 94.8% in the fourth quarter of 2014 compared to
96.2% in the fourth quarter of 2013.
As reported for the quarter ended September 30, 2014, the
Company revised the structure of its reportable segments with the
results of operations of the former NGHC Quota Share segment and
the remnants of the excess & surplus business have been
included in the "Other" category. The combined ratio for the
"Other" category was negatively impacted by higher loss reserve
estimates from the former NGHC Quota Share segment, and to a lesser
extent, additional loss development associated with Superstorm
Sandy claims in 2012. In addition, contributions from these
terminated business lines have been excluded from operating
earnings to appropriately reflect the performance of ongoing
operations. Maiden's combined ratio in the fourth quarter of
2014 excluding these non-operating "Other" category contributions
would have been 97.4%.
Effective January 1, 2015, Maiden entered into a quota share
retrocessional contract with a highly rated, well-capitalized
reinsurer that will support the Company's continued profitable
growth. Maiden anticipates ceding approximately $150 million
to $200 million dollars in 2015.
Record net investment income of $31.7 million in the fourth
quarter of 2014 increased 25.1% compared to the fourth quarter of
2013. As of December 31, 2014, the average yield on the fixed
income portfolio (excluding cash) is 3.46% with an average duration
of 4.54 years.
Total assets increased 9.6% to $5.2 billion at December 31, 2014
compared to $4.7 billion at year-end 2013. Shareholders' equity was
$1.2 billion, up 10.4% compared to
December 31, 2013. Book value per common share was
$12.69 at the end of 2014 or 13.9% higher than at December 31,
2013.
During the fourth quarter of 2014, the Board of Directors
declared dividends of $0.13 per common share, $0.515625 per Series
A preference share and $0.90625 per Series B preference share.
Results for the twelve months ended December 31,
2014
Record net operating earnings(1) for the year ended December 31,
2014 were $117.7 million, or $1.53 per diluted common share
compared with $87.5 million, or $1.18 per diluted common share for
2013. Net income attributable to Maiden common shareholders
was $77.1 million compared to net income attributable to Maiden
common shareholders of $87.9 million in 2013. As reported
previously, in the first quarter of 2014, net income was impacted
by a non-recurring non-cash charge of $28.2 million, representing
the accelerated amortization of both the original issue discount
and issuance costs associated with the redemption of the TRUPs in
January of 2014.
In the year ended December 31, 2014, net premiums written
totaled $2.5 billion, an increase of 17.3% compared to 2013.
Excluding the cancelled NGHC Quota Share, the underlying growth
rate was 27.3%. Net premiums written in the Diversified
Reinsurance segment totaled $850.0 million, an increase of 11.4%
versus 2013. In the AmTrust Reinsurance segment, net premiums
written increased by 37.7% to $1.6 billion compared to 2013.
Net premiums earned of $2.3 billion increased 12.5% compared to
2013. Net premiums earned increased 13.4% in the
Diversified Reinsurance segment to $854.0 million compared to 2013.
The AmTrust Reinsurance segment net premiums earned were up 39.4%
to $1.4 billion compared to 2013.
Net loss and loss adjustment expenses of $1.5 billion were up
11.0% compared to 2013. The loss ratio(6) of 66.1% was lower
than the 67.0% recorded in 2013.
Commission and other acquisition expenses, including general and
administrative expenses, increased $107.0 million to $722.3 million
in 2014, compared to the comparable period a year ago, while the
total expense ratio(9) increased to 31.9% for 2014 compared with
30.5% in 2013. General and administrative expenses for 2014
totaled $62.9 million compared with $58.7 million in 2013. The
general and administrative expense ratio(8) decreased to 2.8% in
2014 versus 2.9% in 2013.
The combined ratio(10) for 2014 totaled 98.0% compared with
97.5% in 2013. The Diversified Reinsurance segment had a
combined ratio of 98.7% in 2014 compared to 98.1% in 2013. The
AmTrust Reinsurance segment reported a combined ratio of 95.4% in
2014 compared to 95.8% in 2013.
Record net investment income of $117.2 million in 2014 increased
28.3% compared to 2013.
(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)(10) 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 Chief Executive Officer, Art Raschbaum and Chief
Financial Officer, Karen Schmitt 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: 75809183
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 19, 2015 through midnight on February 26,
2015. 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: 75809183; 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, 2014, Maiden had $5.2 billion in
assets and shareholders' equity of $1.2 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, 2013 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, 2014
(Unaudited) |
December 31, 2013
(Audited) |
Assets |
|
|
Fixed maturities, available-for-sale, at fair
value (Amortized cost 2014: $3,379,864; 2013: $3,127,792) |
$ 3,456,904 |
$ 3,162,067 |
Other investments, at fair value (Cost 2014:
$10,862; 2013: $4,522) |
12,571 |
5,092 |
Total investments |
3,469,475 |
3,167,159 |
Cash and cash equivalents |
108,119 |
139,833 |
Restricted cash and cash equivalents |
284,381 |
77,360 |
Accrued investment income |
27,524 |
25,238 |
Reinsurance balances receivable, net |
512,996 |
560,145 |
Reinsurance recoverable on unpaid losses |
75,873 |
84,036 |
Loan to related party |
167,975 |
167,975 |
Deferred commission and other acquisition
expenses |
372,487 |
304,908 |
Goodwill and intangible assets, net |
87,336 |
90,613 |
Other assets |
57,926 |
96,112 |
Total Assets |
$ 5,164,092 |
$ 4,713,379 |
Liabilities
and Equity |
|
|
Liabilities |
|
|
Reserve for loss and loss adjustment
expenses |
$ 2,271,292 |
$ 1,957,835 |
Unearned premiums |
1,207,757 |
1,034,754 |
Accrued expenses and other liabilities |
83,877 |
110,114 |
Senior notes |
360,000 |
360,000 |
Junior subordinated debt |
-- |
126,381 |
Total Liabilities |
3,922,926 |
3,589,084 |
|
|
|
Equity |
|
|
Preference Shares |
315,000 |
315,000 |
Common shares |
739 |
736 |
Additional paid-in capital |
578,445 |
574,522 |
Accumulated other comprehensive income |
95,293 |
25,784 |
Retained earnings |
255,084 |
211,602 |
Treasury shares, at cost |
(3,867) |
(3,801) |
Total Maiden Shareholders'
Equity |
1,240,694 |
1,123,843 |
Noncontrolling interest in
subsidiaries |
472 |
452 |
Total Equity |
1,241,166 |
1,124,295 |
Total Liabilities and
Equity |
$ 5,164,092 |
$ 4,713,379 |
|
|
|
|
|
|
Book value per common
share(4) |
$ 12.69 |
$ 11.14 |
|
|
|
Common shares
outstanding |
72,932,702 |
72,633,561 |
|
|
Maiden Holdings,
Ltd. |
Income
Statement |
(in thousands (000's),
except per share data) |
(Unaudited) |
|
|
|
|
|
|
For the Three Months Ended December
31, 2014 |
For the Three Months Ended December
31, 2013 |
For the Year Ended December 31,
2014 |
For the Year Ended December 31,
2013 |
|
|
|
|
|
Revenues: |
|
|
|
|
Gross premiums written |
$ 602,101 |
$ 462,067 |
$ 2,507,352 |
$ 2,204,159 |
|
|
|
|
|
Net premiums written |
$ 601,868 |
$ 445,875 |
$ 2,458,136 |
$ 2,096,301 |
Change in unearned premiums |
6,307 |
45,171 |
(206,393) |
(95,414) |
Net premiums earned |
608,175 |
491,046 |
2,251,743 |
2,000,887 |
Other insurance revenue |
2,983 |
2,966 |
13,410 |
14,232 |
Net investment income |
31,746 |
25,375 |
117,215 |
91,352 |
Net realized gains (losses) on
investment |
188 |
(122) |
1,163 |
3,585 |
Total other-than-temporary impairment
losses |
(1,175) |
-- |
(2,364) |
-- |
Portion of loss recognized in other
comprehensive income (loss) |
-- |
-- |
-- |
-- |
Net impairment losses recognized in
earnings |
(1,175) |
-- |
(2,364) |
-- |
Total revenues |
641,917 |
519,265 |
2,381,167 |
2,110,056 |
Expenses: |
|
|
|
|
Net loss and loss adjustment expenses |
395,955 |
329,759 |
1,498,271 |
1,349,630 |
Commission and other acquisition
expenses |
189,585 |
136,482 |
659,315 |
556,578 |
General and administrative expenses |
17,093 |
14,498 |
62,937 |
58,661 |
Total expenses |
602,633 |
480,739 |
2,220,523 |
1,964,869 |
|
|
|
|
|
Income from
operations(2) |
39,284 |
38,526 |
160,644 |
145,187 |
|
|
|
|
|
Other expenses |
|
|
|
|
Amortization of intangible assets |
(819) |
(945) |
(3,277) |
(3,780) |
Foreign exchange and other gains |
2,595 |
236 |
4,150 |
2,809 |
Interest and amortization expenses |
(7,172) |
(10,786) |
(29,580) |
(39,497) |
Accelerated amortization of junior
subordinated debt discount and issuance cost |
-- |
-- |
(28,240) |
-- |
Total other
expenses |
(5,396) |
(11,495) |
(56,947) |
(40,468) |
|
|
|
|
|
Income before income
taxes |
33,888 |
27,031 |
103,697 |
104,719 |
|
|
|
|
|
Income tax expense |
257 |
646 |
2,164 |
1,863 |
|
|
|
|
|
Net income |
33,631 |
26,385 |
101,533 |
102,856 |
Less: income attributable to noncontrolling
interest |
(33) |
(26) |
(142) |
(121) |
Net income attributable to
Maiden |
33,598 |
26,359 |
101,391 |
102,735 |
Dividends on preference shares |
(6,084) |
(5,553) |
(24,337) |
(14,834) |
|
|
|
|
|
Net income attributable to Maiden
common shareholders |
$ 27,514 |
$ 20,806 |
$ 77,054 |
$ 87,901 |
|
|
|
|
|
Net operating earnings attributable
to Maiden common shareholders(1) |
$ 34,627 |
$ 23,281 |
$ 117,702 |
$ 87,492 |
|
|
|
|
|
Basic earnings per common share
attributable to Maiden shareholders |
$ 0.38 |
$ 0.29 |
$ 1.06 |
$ 1.21 |
|
|
|
|
|
Diluted earnings per common share
attributable to Maiden shareholders |
$ 0.36 |
$ 0.27 |
$ 1.04 |
$ 1.18 |
Basic operating earnings per common
share attributable to Maiden shareholders |
$ 0.47 |
$ 0.32 |
$ 1.61 |
$ 1.21 |
Diluted operating earnings per common
share attributable to Maiden shareholders |
$ 0.44 |
$ 0.30 |
$ 1.53 |
$ 1.18 |
|
|
|
|
|
Dividends declared per common
share |
$ 0.13 |
$ 0.11 |
$ 0.46 |
$ 0.38 |
|
|
|
|
|
Weighted average number of common
shares - basic |
72,915,980 |
72,615,033 |
72,843,782 |
72,510,361 |
Adjusted weighted average number of
common shares and assumed conversions - diluted |
84,982,895 |
84,521,981 |
84,836,051 |
76,417,839 |
|
|
|
|
|
Net loss and loss adjustment expense
ratio(6) |
64.8% |
66.8% |
66.1% |
67.0% |
Commission and other acquisition
expense ratio(7) |
31.0% |
27.6% |
29.1% |
27.6% |
General and administrative
expense ratio(8) |
2.8% |
2.9% |
2.8% |
2.9% |
Expense ratio(9) |
33.8% |
30.5% |
31.9% |
30.5% |
Combined ratio(10) |
98.6% |
97.3% |
98.0% |
97.5% |
Annualized return on common
equity |
12.0% |
10.1% |
8.9% |
10.5% |
Annualized operating return on common
equity |
15.1% |
11.3% |
13.6% |
10.5% |
|
|
Maiden Holdings,
Ltd. |
Non - GAAP Financial
Measure |
(in thousands (000's),
except per share data) |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended December
31, 2014 |
For the Three Months Ended December
31, 2013 |
For the Year Ended December 31,
2014 |
For the Year Ended December 31,
2013 |
|
|
|
|
|
Reconciliation of net income
attributable to Maiden common shareholders to net operating
earnings: |
|
|
|
|
Net income attributable to Maiden common
shareholders |
$ 27,514 |
$ 20,806 |
$ 77,054 |
$ 87,901 |
Add (subtract) |
|
|
|
|
Net realized (gains) losses on
investment |
(188) |
122 |
(1,163) |
(3,585) |
Net impairment losses recognized in
earnings |
1,175 |
-- |
2,364 |
-- |
Foreign exchange and other gains |
(2,595) |
(236) |
(4,150) |
(2,809) |
Amortization of intangible assets |
819 |
945 |
3,277 |
3,780 |
Divested excess and surplus "E&S"
business and NGHC run-off |
7,612 |
-- |
10,427 |
-- |
Interest expense incurred related to
7.75% senior notes prior to actual redemption of the junior
subordinated debt |
-- |
1,215 |
492 |
1,215 |
Accelerated amortization of junior
subordinated debt discount and issuance cost |
-- |
-- |
28,240 |
-- |
Non-cash deferred tax expense |
290 |
429 |
1,161 |
990 |
Net operating earnings attributable to Maiden
common shareholders(1) |
$ 34,627 |
$ 23,281 |
$ 117,702 |
$ 87,492 |
|
|
|
|
|
Operating earnings per common share
attributable to Maiden shareholders: |
|
|
|
|
|
|
|
|
|
Basic earnings per common share attributable
to Maiden shareholders |
$ 0.47 |
$ 0.32 |
$ 1.61 |
$ 1.21 |
Diluted earnings per common share
attributable to Maiden shareholders |
$ 0.44 |
$ 0.30 |
$ 1.53 |
$ 1.18 |
|
|
|
|
|
Reconciliation of net income
attributable to Maiden to income from operations: |
|
|
|
|
Net income attributable to Maiden |
$ 33,598 |
$ 26,359 |
$ 101,391 |
$ 102,735 |
Add (subtract) |
|
|
|
|
Foreign exchange and other gains |
(2,595) |
(236) |
(4,150) |
(2,809) |
Amortization of intangible assets |
819 |
945 |
3,277 |
3,780 |
Interest and amortization expenses |
7,172 |
10,786 |
29,580 |
39,497 |
Accelerated amortization of junior
subordinated debt discount and issuance cost |
-- |
-- |
28,240 |
-- |
Income tax expense |
257 |
646 |
2,164 |
1,863 |
Income attributable to noncontrolling
interest |
33 |
26 |
142 |
121 |
Income from operations(2) |
$ 39,284 |
$ 38,526 |
$ 160,644 |
$ 145,187 |
|
|
|
|
|
|
December 31, 2014 |
December 31, 2013 |
|
|
Investable assets: |
|
|
|
|
Total investments |
$ 3,469,475 |
$ 3,167,159 |
|
|
Cash and cash equivalents |
108,119 |
139,833 |
|
|
Restricted cash and cash equivalents |
284,381 |
77,360 |
|
|
Loan to related party |
167,975 |
167,975 |
|
|
Total investable assets(3) |
$ 4,029,950 |
$ 3,552,327 |
|
|
|
|
|
|
|
|
December 31, 2014 |
December 31, 2013 |
|
|
Capital: |
|
|
|
|
Preference shares |
$ 315,000 |
$ 315,000 |
|
|
Common shareholders' equity |
925,694 |
808,843 |
|
|
Total Maiden shareholders'
equity |
1,240,694 |
1,123,843 |
|
|
2011 Senior Notes |
107,500 |
107,500 |
|
|
2012 Senior Notes |
100,000 |
100,000 |
|
|
2013 Senior Notes |
152,500 |
152,500 |
|
|
Junior Subordinated Debt |
-- |
126,381 |
|
|
Total capital
resources(5) |
$ 1,600,694 |
$ 1,610,224 |
|
|
|
(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, net impairment
losses recognized in earnings, foreign exchange and other gains and
losses, amortization of intangible assets, divested excess and
surplus business and NGHC run-off, interest expense incurred
related to 7.75% senior notes prior to actual redemption of the
junior subordinated debt, accelerated amortization of junior
subordinated debt discount and issuance cost 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, accelerated amortization of junior
subordinated debt and issuance cost, 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
and loan to a related party. |
|
(4) Book value per common
share is calculated using common shareholders' equity
(shareholders' equity excluding the aggregate liquidation value of
our preference shares) divided by the number of common shares
outstanding. |
|
(5) Total capital resources
is the sum of the Company's debt and Maiden shareholders'
equity. |
|
|
Maiden Holdings,
Ltd. |
Supplemental Financial
Data - Segment Information |
(in thousands
(000's)) |
(Unaudited) |
|
|
|
|
|
For the Three Months Ended December
31, 2014 |
Diversified
Reinsurance |
AmTrust
Reinsurance |
Other |
Total |
Net premiums written |
$ 168,359 |
$ 433,528 |
$ (19) |
$ 601,868 |
Net premiums earned |
$ 218,775 |
$ 389,414 |
$ (14) |
$ 608,175 |
Other insurance revenue |
2,983 |
-- |
-- |
2,983 |
Net loss and loss adjustment expenses |
(140,442) |
(248,144) |
(7,369) |
(395,955) |
Commissions and other acquisition
expenses |
(68,861) |
(120,672) |
(52) |
(189,585) |
General and administrative expenses |
(11,707) |
(498) |
(177) |
(12,382) |
Underwriting income
(loss) |
$ 748 |
$ 20,100 |
$ (7,612) |
$ 13,236 |
|
|
|
|
|
Reconciliation to net
income |
|
|
|
|
Net investment income and realized gains on
investment |
|
|
|
31,934 |
Net impairment losses recognized in
earnings |
|
|
|
(1,175) |
Amortization of intangible assets |
|
|
|
(819) |
Foreign exchange and other gains |
|
|
|
2,595 |
Interest and amortization expenses |
|
|
|
(7,172) |
Other general and administrative
expenses |
|
|
|
(4,711) |
Income tax expense |
|
|
|
(257) |
Net income |
|
|
|
$ 33,631 |
|
|
|
|
|
Net loss and loss adjustment expense
ratio(6) |
63.3% |
63.7% |
(52,635.7)% |
64.8% |
Commission and other acquisition expense
ratio(7) |
31.1% |
31.0% |
(371.4)% |
31.0% |
General and administrative expense
ratio(8) |
5.3% |
0.1% |
(1,264.3)% |
2.8% |
Combined ratio(10) |
99.7% |
94.8% |
(54,271.4)% |
98.6% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended December
31, 2013 |
Diversified
Reinsurance |
AmTrust
Reinsurance |
Other |
Total |
Net premiums written |
$ 173,762 |
$ 274,932 |
$ (2,819) |
$ 445,875 |
Net premiums earned |
$ 188,009 |
$ 263,800 |
$ 39,237 |
$ 491,046 |
Other insurance revenue |
2,966 |
-- |
-- |
2,966 |
Net loss and loss adjustment expenses |
(127,592) |
(174,806) |
(27,361) |
(329,759) |
Commissions and other acquisition
expenses |
(46,920) |
(78,360) |
(11,202) |
(136,482) |
General and administrative expenses |
(10,692) |
(494) |
(177) |
(11,363) |
Underwriting income |
$ 5,771 |
$ 10,140 |
$ 497 |
$ 16,408 |
|
|
|
|
|
Reconciliation to net
income |
|
|
|
|
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) |
Net income |
|
|
|
$ 26,385 |
|
|
|
|
|
Net loss and loss adjustment expense
ratio(6) |
66.8% |
66.3% |
69.7% |
66.8% |
Commission and other acquisition expense
ratio(7) |
24.6% |
29.7% |
28.5% |
27.6% |
General and administrative expense
ratio(8) |
5.6% |
0.2% |
0.5% |
2.9% |
Combined ratio(10) |
97.0% |
96.2% |
98.7% |
97.3% |
|
|
|
|
|
|
|
|
|
|
Maiden Holdings,
Ltd. |
Supplemental Financial
Data - Segment Information |
(in thousands
(000's)) |
(Unaudited) |
|
|
|
|
|
For the Year Ended December 31,
2014 |
Diversified
Reinsurance |
AmTrust
Reinsurance |
Other |
Total |
Net premiums written |
$ 850,049 |
$ 1,610,485 |
$ (2,398) |
$ 2,458,136 |
Net premiums earned |
$ 854,026 |
$ 1,378,327 |
$ 19,390 |
$ 2,251,743 |
Other insurance revenue |
13,410 |
-- |
-- |
13,410 |
Net loss and loss adjustment expenses |
(579,771) |
(893,502) |
(24,998) |
(1,498,271) |
Commissions and other acquisition
expenses |
(233,711) |
(418,908) |
(6,696) |
(659,315) |
General and administrative expenses |
(42,914) |
(2,098) |
(757) |
(45,769) |
Underwriting income
(loss) |
$ 11,040 |
$ 63,819 |
$ (13,061) |
$ 61,798 |
|
|
|
|
|
Reconciliation to net
income |
|
|
|
|
Net investment income and realized gains on
investment |
|
|
|
118,378 |
Net impairment losses recognized in
earnings |
|
|
|
(2,364) |
Amortization of intangible assets |
|
|
|
(3,277) |
Foreign exchange and other gains |
|
|
|
4,150 |
Interest and amortization expenses |
|
|
|
(29,580) |
Accelerated amortization of junior
subordinated debt discount and issuance cost |
|
|
|
(28,240) |
Other general and administrative
expenses |
|
|
|
(17,168) |
Income tax expense |
|
|
|
(2,164) |
Net income |
|
|
|
$ 101,533 |
|
|
|
|
|
Net loss and loss adjustment expense
ratio(6) |
66.8% |
64.8% |
128.9% |
66.1% |
Commission and other acquisition expense
ratio(7) |
26.9% |
30.4% |
34.5% |
29.1% |
General and administrative expense
ratio(8) |
5.0% |
0.2% |
4.0% |
2.8% |
Combined ratio(10) |
98.7% |
95.4% |
167.4% |
98.0% |
|
|
|
|
|
|
|
|
|
|
For the Year Ended December 31,
2013 |
Diversified
Reinsurance |
AmTrust
Reinsurance |
Other |
Total |
Net premiums written |
$ 763,374 |
$ 1,169,961 |
$ 162,966 |
$ 2,096,301 |
Net premiums earned |
$ 753,157 |
$ 988,900 |
$ 258,830 |
$ 2,000,887 |
Other insurance revenue |
14,232 |
-- |
-- |
14,232 |
Net loss and loss adjustment expenses |
(519,962) |
(653,528) |
(176,140) |
(1,349,630) |
Commissions and other acquisition
expenses |
(190,604) |
(291,559) |
(74,415) |
(556,578) |
General and administrative expenses |
(42,331) |
(1,992) |
(707) |
(45,030) |
Underwriting income |
$ 14,492 |
$ 41,821 |
$ 7,568 |
$ 63,881 |
|
|
|
|
|
Reconciliation to net
income |
|
|
|
|
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) |
Net income |
|
|
|
$ 102,856 |
|
|
|
|
|
Net loss and loss adjustment expense
ratio(6) |
67.8% |
66.1% |
68.1% |
67.0% |
Commission and other acquisition expense
ratio(7) |
24.8% |
29.5% |
28.8% |
27.6% |
General and administrative expense
ratio(8) |
5.5% |
0.2% |
0.2% |
2.9% |
Combined ratio(10) |
98.1% |
95.8% |
97.1% |
97.5% |
|
|
|
|
|
(6) Calculated by dividing net
loss and loss adjustment expenses by the sum of net premiums earned
and other insurance revenue. |
(7) Calculated by dividing
commission and other acquisition expenses by the sum of net
premiums earned and other insurance revenue. |
(8) Calculated by dividing
general and administrative expenses by the sum of net premiums
earned and other insurance revenue. |
(9) Calculated by adding together
the commission and other acquisition expense ratio and general and
administrative expense ratio. |
(10) 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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