Company enters loss portfolio transfer for
AmTrust loss reserves
Maiden Holdings, Ltd. (NASDAQ: MHLD) (“Maiden” or “the
Company”) today reported third quarter 2018 net loss attributable
to Maiden common shareholders of $308.8 million or $3.72 per
diluted common share compared to a net loss attributable to Maiden
common shareholders of $63.6 million or $0.74 per diluted common
share in the third quarter of 2017. The non-GAAP operating
loss (11) was $235.1 million, or $2.83 per diluted common share
compared with a non-GAAP operating loss of $54.2 million, or $0.63
per diluted common share in the third quarter of 2017.
Loss Portfolio Transfer
The Company also announced that it has signed an
agreement with Enstar Group Limited (“Enstar”) by which one of its
wholly-owned subsidiaries will enter into a retrocession agreement
to effect a loss portfolio transfer in which the Enstar entity
would assume loss reserves of approximately $2.675 billion
associated with quota share reinsurance contracts that Maiden’s
wholly-owned subsidiary, Maiden Reinsurance Ltd., (“Maiden
Bermuda”) has with AmTrust Financial Services, Inc. or its
subsidiaries (“AmTrust”). The retrocession will apply to
losses arising and/or claims made on or prior to June 30, 2018, and
loss reserves assumed will be subject to adjustment for paid losses
since such date. The transaction is subject to regulatory
approvals and other closing conditions.
Both of the Company’s current quota share
reinsurance contracts with AmTrust remain in-force. As previously
disclosed, the Company and AmTrust have mutually agreed to extend
the notice period of non-renewal for the current Master Agreement
until January 31, 2019.
Commenting on the Company’s results and
announced transaction with Enstar, Maiden’s President and Chief
Executive Officer, Lawrence F. Metz said, “Since late August, we
have witnessed significant progress in the execution of the
Company’s strategic review and our announcement today with Enstar
materially advances our work and significantly strengthens our
financial position. During that time, we announced the sale
of Maiden Reinsurance North America, Inc. to Enstar for net
proceeds of $307.5 million subject to closing adjustments, executed
a Renewal Rights Agreement with Transatlantic Reinsurance Company
for net proceeds of $7.5 million and subject to further increases,
and sold our U.S. casualty facultative reinsurance team to Sompo
Group. While there is still work to do, we believe that much has
been accomplished, and we remain committed to completing our
strategic review process and to taking the actions necessary to
further enhance value to all our shareholders.”
Patrick J. Haveron, Maiden’s Chief Financial and
Operating Officer added, “During the third quarter, we also took
the opportunity to materially strengthen our carried loss reserves
and position Maiden for profitable future results. Our
announcement today with Enstar brings additional certainty and
finality to the steps we have taken. Upon completion of all of the
strategic transactions announced since August, Maiden’s capital
position will be dramatically stronger. These measures will
afford us significant flexibility to manage our capital to further
increase shareholder value and combined with the significant and
on-going expense reduction implemented in the third quarter, we
anticipate an improved outlook for Maiden as 2018 heads to its
final quarter and into 2019.”
Consolidated Results for the Quarter
Ended September 30, 2018
In the third quarter of 2018, gross premiums
written increased to $484.5 million from $443.0 million in the
third quarter of 2017. Net premiums written totaled $482.8
million in the third quarter of 2018, an increase of 11.6% compared
to $432.7 million in the third quarter of 2017. Net premiums
earned were $520.1 million in the third quarter of 2018 compared to
$457.3 million in the third quarter of 2017, representing an
increase of 13.7%.
In the third quarter of 2018, net loss and loss
adjustment expenses increased to $600.3 million compared to $370.8
million in the third quarter of 2017 due primarily to higher
adverse prior year loss development for the AmTrust Reinsurance
segment which was $210.4 million for the third quarter of
2018. The loss ratio (6) in the third quarter of 2018 was
115.0% compared to 80.6% reported in the third quarter of 2017.
Commission and other acquisition expenses
increased to $167.6 million in the third quarter of 2018, compared
to $145.4 million in the third quarter of 2017 resulting in
commission and other acquisition expense ratios of 32.1% and 31.6%,
respectively. General and administrative expenses for the
third quarter of 2018 totaled $18.9 million compared to $15.4
million in the third quarter of 2017 primarily due to increases in
compensation benefits paid, greater corporate insurance costs
incurred and higher technology-related expenses. The general and
administrative expense ratio(8) in the third quarter of 2018
increased to 3.6% compared to 3.4% in the third quarter of 2017,
while the expense ratio(9) was 35.7% in the third quarter of 2018
compared with 35.0% in the same quarter last year.
The combined ratio(10) for the third quarter of
2018 totaled 150.7% compared with 115.6% in the third quarter of
2017.
Net investment income increased by 11.2% in the
quarter to $34.4 million from $31.0 million in the same period last
year. As of September 30, 2018, the average yield on the
fixed income portfolio including discontinued operations was 3.17%
while the average duration of investable assets was 4.3 years.
Reportable Segments
As a result of the strategic decision to divest
all of the Company’s U.S. treaty reinsurance operations, the
Company has revised the composition of its reportable segments to
include: (i) Diversified Reinsurance which consists of a
portfolio of property and casualty reinsurance focusing on regional
and specialty property and casualty insurance companies located
primarily in Europe; and (ii) AmTrust Reinsurance which includes
all business ceded to our wholly owned subsidiary, Maiden Bermuda,
from AmTrust and its subsidiaries (primarily the AmTrust Quota
Share and the European Hospital Liability Quota Share). In
addition to these reportable segments, the results of operations of
the former National General Holdings Corporation Quota Share
segment is included in the “Other” category. All prior
periods presented have been reclassified to conform to this new
presentation.
($ in thousands) |
|
Diversified
Reinsurance |
|
AmTrustReinsurance |
|
Total |
Total
assets – reportable segments |
|
$ |
180,676 |
|
|
$ |
4,297,992 |
|
|
$ |
4,478,668 |
|
Corporate assets |
|
|
--- |
|
|
|
--- |
|
|
|
442,347 |
|
Assets held for sale |
|
|
--- |
|
|
|
--- |
|
|
|
1,615,486 |
|
Total Assets |
|
$ |
180,676 |
|
|
$ |
4,297,992 |
|
|
$ |
6,536,501 |
|
Diversified Reinsurance
Segment
|
|
For the Three Months Ended Sept.
30, |
|
|
($ in thousands) |
|
2018 |
|
2017 |
|
Change in (%) |
Gross
premiums written |
|
$ |
31,699 |
|
|
$ |
22,982 |
|
|
37.9 |
% |
Net
premiums written |
|
$ |
31,291 |
|
|
$ |
22,484 |
|
|
39.2 |
% |
Net
premiums earned |
|
$ |
28,784 |
|
|
$ |
20,925 |
|
|
37.6 |
% |
|
|
|
|
|
|
|
Underwriting Ratios |
|
|
|
|
|
% Point Change |
Net
loss and LAE ratio(6) |
|
64.5 |
% |
|
59.7 |
% |
|
4.8 |
|
Commission and other acquisition expense ratio(7) |
|
29.2 |
% |
|
28.6 |
% |
|
0.6 |
|
General and administrative expense ratio(8) |
|
13.9 |
% |
|
17.8 |
% |
|
(3.9 |
) |
Expense ratio(9) |
|
43.1 |
% |
|
46.4 |
% |
|
(3.3 |
) |
Combined ratio(10) |
|
107.6 |
% |
|
106.1 |
% |
|
1.5 |
|
Gross premiums written and net premiums written
increased by 37.9% and 39.2%, respectively, in the third quarter of
2018 primarily due to new account growth and expansion of client
relationships in our European capital solutions business and growth
in German auto programs. Net premiums earned increased by
37.6% in the third quarter of 2018 driven by new client development
and favorable growth in the German auto program. The net loss
and LAE ratio increased by 4.8 points compared to the same period
in 2017 due to higher initial loss ratios on current year premiums
earned during the period partially offset by lower adverse prior
year loss development which was $0.7 million in the third quarter
of 2018 compared to $1.1 million for the same period in 2017.
The segment’s combined ratio increased by 1.5 points to 107.6% in
the third quarter of 2018 compared to 106.1% in the same period
last year due primarily to higher initial loss ratios on current
year premiums earned during the period partially offset by lower
adverse prior year loss development.
AmTrust Reinsurance Segment
|
|
For the Three Months Ended Sept.
30, |
|
|
($ in thousands) |
|
2018 |
|
2017 |
|
Change in (%) |
Gross
premiums written |
|
$ |
452,795 |
|
|
$ |
420,019 |
|
|
7.8 |
% |
Net
premiums written |
|
$ |
451,515 |
|
|
$ |
410,193 |
|
|
10.1 |
% |
Net
premiums earned |
|
$ |
491,293 |
|
|
$ |
436,353 |
|
|
12.6 |
% |
|
|
|
|
|
|
|
Underwriting Ratios |
|
|
|
|
|
% Point Change |
Net
loss and LAE ratio(6) |
|
117.9 |
% |
|
81.4 |
% |
|
36.5 |
Commission and other acquisition expense ratio(7) |
|
32.3 |
% |
|
31.7 |
% |
|
0.6 |
General and administrative expense ratio(8) |
|
0.2 |
% |
|
0.2 |
% |
|
0.0 |
Expense ratio(9) |
|
32.5 |
% |
|
31.9 |
% |
|
0.6 |
Combined ratio(10) |
|
150.4 |
% |
|
113.3 |
% |
|
37.1 |
Gross premiums written and net premiums written
increased 7.8% and 10.1%, respectively, during the third quarter of
2018 generated by growth in the Specialty lines of business
partially offset by reductions in Small Commercial Business. Net
premiums earned in the segment increased by 12.6% compared to the
same period in 2017 mainly due to the growth in net premiums
written in the Specialty lines of the AmTrust quota share.
The Net loss and LAE ratio increased by 36.5 points due to higher
adverse prior year loss development which was $210.4 million for
the third quarter of 2018 compared to $61.1 million for the same
period in 2017. The 2018 development was largely from Workers
Compensation, which represented nearly half of the adverse
development, and was primarily driven by accident years 2014 to
2017, and to a lesser extent, development in European hospital
liability, Commercial Auto and General Liability. This
compares to $61.1 million of adverse development for the third
quarter of 2017 primarily due to Worker’s Compensation, General
liability as well as Commercial Auto liability lines for both
Specialty Programs and Small Commercial Business where elevated
loss activity had been observed. The segment combined ratio
increased by 37.1 points to 150.4% in the third quarter of 2018
compared to 113.3% in the same period in 2017 primarily due to
higher adverse prior year loss development and higher initial loss
ratios for current year premiums earned as well as elevated actual
current year activity in the Specialty Risk and Extended Warranty
lines.
Consolidated Results for the Nine Months
Ended September 30, 2018
The net loss attributable to Maiden common
shareholders was $301.0 million or $3.62 per diluted common share
in the first nine months of 2018 compared to a net loss
attributable to Maiden common shareholders of $65.5 million or
$0.76 per diluted common share in the first nine months of
2017. The non-GAAP operating loss(11) for the first nine
months of 2018 was $256.4 million, or $3.09 per diluted common
share compared with a non-GAAP operating loss of $39.9 million, or
$0.46 per diluted common share in the first nine months of
2017.
For the first nine months of 2018, gross
premiums written were $1.63 billion compared to $1.65 billion for
the first nine months of 2017. Net premiums written totaled $1.63
billion in the first nine months of 2018 compared to $1.60 billion
for the same period in 2017. Net premiums earned were $1.54
billion in the first nine months of 2018 compared to $1.51 billion
for the same period in 2017.
Net loss and loss adjustment expenses of $1.32
billion compared to $1.09 billion for the first nine months of
2017. The loss ratio(6) for the first nine months of 2018 was
85.5% compared to 71.7% reported for the same period in 2017.
Commission and other acquisition expenses were
$497.0 million for the first nine months of 2018, compared to
$487.8 million for the first nine months of 2017 resulting in a
commission and other acquisition expense ratio of 32.1% which was
unchanged from the prior year. General and administrative
expenses for the first nine months of 2018 totaled $48.3 million
compared with $38.2 million in the first nine months of 2017
primarily due to higher compensation benefits paid, higher audit
and legal fees and higher technology-related expenses. The
general and administrative expense ratio(8) in the first nine
months of 2018 was 3.1% compared to 2.5% in the same period in
2017, while the expense ratio(9) was 35.2% in the first nine months
of 2018 compared with 34.6% in the same period last year.
The combined ratio(10) for the first nine months
of 2018 totaled 120.7% compared with 106.3% in the first nine
months of 2017.
Net investment income was $101.5 million during
the first nine months of 2018 compared to $91.6 million in the
first nine months of 2017.
Diversified Reinsurance
Segment
|
|
For the Nine Months Ended Sept.
30, |
|
|
($ in thousands) |
|
2018 |
|
2017 |
|
Change in (%) |
Gross
premiums written |
|
$ |
111,139 |
|
|
$ |
75,085 |
|
|
48.0 |
% |
Net
premiums written |
|
$ |
109,279 |
|
|
$ |
73,434 |
|
|
48.8 |
% |
Net
premiums earned |
|
$ |
82,838 |
|
|
$ |
61,626 |
|
|
34.4 |
% |
|
|
|
|
|
|
|
Underwriting Ratios |
|
|
|
|
|
% Point Change |
Net
loss and LAE ratio(6) |
|
57.3 |
% |
|
59.8 |
% |
|
(2.5 |
) |
Commission and other acquisition expense ratio(7) |
|
31.3 |
% |
|
31.7 |
% |
|
(0.4 |
) |
General and administrative expense ratio(8) |
|
14.7 |
% |
|
17.0 |
% |
|
(2.3 |
) |
Expense ratio(9) |
|
46.0 |
% |
|
48.7 |
% |
|
(2.7 |
) |
Combined ratio(10) |
|
103.3 |
% |
|
108.5 |
% |
|
(5.2 |
) |
Gross premiums written and net premiums written
increased by 48.0% and 48.8%, respectively, for the first nine
months due to new account growth and expansion of the German Auto
program and other client relationships in our European capital
solutions business as well as new business development in the Life
and General lines. Net premiums earned increased by 34.4%
largely driven by new client development and favorable growth in
German auto programs. The segment’s net loss and LAE ratio
decreased by 2.5 points due to lower adverse prior year loss
development of $1.8 million for the nine months ended September 30,
2018 compared to $8.5 million for the same period in 2017.
The 2018 development was due to adverse facultative reinsurance
run-off partially offset by favorable development in International
Auto. The development in 2017 was primarily due to adverse
development in facultative reinsurance run-off lines as well as
claims activity in International auto programs. The segment’s
combined ratio decreased by 5.2 points to 103.3% for the first nine
months of 2018 compared to 108.5% in 2017 primarily due to lower
net adverse development compared to the same period in 2017.
AmTrust Reinsurance Segment
|
|
For the Nine Months Ended Sept.
30, |
|
|
($ in thousands) |
|
2018 |
|
2017 |
|
Change in (%) |
Gross
premiums written |
|
$ |
1,518,208 |
|
|
$ |
1,575,677 |
|
|
(3.6 |
)% |
|
Net
premiums written |
|
$ |
1,517,206 |
|
|
$ |
1,529,980 |
|
|
(0.8 |
)% |
|
Net
premiums earned |
|
$ |
1,458,440 |
|
|
$ |
1,450,811 |
|
|
0.5 |
% |
|
|
|
|
|
|
|
|
Underwriting Ratios |
|
|
|
|
|
% Point Change |
Net
loss and LAE ratio(6) |
|
87.1 |
% |
|
72.2 |
% |
|
14.9 |
Commission and other acquisition expense ratio(7) |
|
32.1 |
% |
|
32.1 |
% |
|
0.0 |
General and administrative expense ratio(8) |
|
0.2 |
% |
|
0.1 |
% |
|
0.1 |
Expense ratio(9) |
|
32.3 |
% |
|
32.2 |
% |
|
0.1 |
Combined ratio(10) |
|
119.4 |
% |
|
104.4 |
% |
|
15.0 |
Gross premiums written and net premiums written
decreased by 3.6% and 0.8%, respectively, during the first nine
months of 2018 which mainly reflects reductions in the Small
Commercial Business lines combined with growth in Specialty
Program, Specialty Risk and Extended Warranty. Net premiums
earned in the segment increased by 0.5% compared to the same period
in 2017 mainly due to growth in net premiums written on the
Specialty lines within the AmTrust quota share. The Net loss
and LAE ratio increased by 14.9 points due higher adverse prior
year loss development of $247.3 million for the first nine months
of 2018 largely from Workers Compensation and European Hospital
liability, with a smaller contribution from General and Commercial
Auto liability. This compares to adverse prior year loss
development of $100.9 million for the first nine months of 2017
which was primarily related to General liability as well as Auto
liability and Workers Compensation lines for both Specialty
Programs and Small Commercial Business. The segment combined
ratio increased by 15.0 points to 119.4% in the first nine months
of 2018 compared to 104.4% in the same period in 2017 primarily due
to a higher amount of adverse prior year loss development.
Other Financial Matters
- Total assets were $6.5 billion at September 30, 2018 compared
to $6.7 billion at June 30, 2018. Shareholders' equity was
$772.6 million at September 30, 2018 compared to $1.1 billion at
June 30, 2018.
- Book value per common share(1) was $3.71 at September 30, 2018
compared to $7.71 at June 30, 2018. In the third quarter of
2018, the Company recognized unrealized losses in its fixed income
investment portfolio of $23.9 million, resulting in a $0.29
decrease in book value per share, and total AOCI of $116.4 million
at September 30, 2018. Book value per common share excluding
total AOCI was $5.11 at September 30, 2018 compared to $9.08 at
December 31, 2017.
(1)(11) 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)(7)(8)(9)(10) Loss ratio, commission and
other acquisition expense ratio, general and administrative expense
ratio, expense ratio and combined ratio are non-GAAP operating
metrics. Please see the additional information on these measures
under Non-GAAP Financial Measures tables.
About Maiden Holdings, Ltd.
Maiden Holdings, Ltd. is a Bermuda-based holding
company formed in 2007. Through its subsidiaries, which are
each rated A- (excellent) by A.M. As of September 30, 2018,
Maiden had $6.5 billion in assets and shareholders' equity of
$772.6 million.
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. In addition, the
Company may not be able to complete the proposed transaction with
Enstar on the terms summarized above or other acceptable terms, or
at all, due to a number of factors, including but not limited
to failure to obtain governmental and regulatory approvals or to
satisfy other closing conditions. 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, 2017 as updated
in periodic filings with the SEC. However these factors should not
be construed as exhaustive. Forward-looking statements speak only
as of the date they are made and the Company undertakes no
obligation to update or revise any forward-looking statement that
may be made from time to time, whether as a result of new
information, future developments or otherwise, except as required
by law.
Contact:
Bill Horning, Senior Vice President, Investor RelationsMaiden
Holdings, Ltd.Phone: 856.359.2532E-mail: bhorning@maiden.bm
|
MAIDEN HOLDINGS, LTD. |
CONSOLIDATED BALANCE SHEETS |
(In thousands of U.S. dollars, except share and
per share data) |
|
|
|
|
|
|
|
September 30,2018 |
|
December 31,2017 |
ASSETS |
|
|
|
|
Investments: |
|
|
|
|
Fixed maturities,
available-for-sale, at fair value (amortized cost 2018: $2,867,251;
2017: $2,699,297) |
|
$ |
2,781,553 |
|
|
$ |
2,707,516 |
|
Fixed
maturities, held-to-maturity, at amortized cost (fair value 2018:
$1,019,741; 2017: $1,125,626) |
|
1,032,885 |
|
|
1,097,801 |
|
Other
investments, at fair value |
|
22,586 |
|
|
6,600 |
|
Total investments |
|
3,837,024 |
|
|
3,811,917 |
|
Cash and cash
equivalents |
|
94,578 |
|
|
54,470 |
|
Restricted cash and
cash equivalents |
|
169,996 |
|
|
94,905 |
|
Accrued investment
income |
|
29,658 |
|
|
28,798 |
|
Reinsurance balances
receivable, net |
|
161,436 |
|
|
72,494 |
|
Loan to related
party |
|
167,975 |
|
|
167,975 |
|
Deferred commission and
other acquisition expenses, net |
|
419,265 |
|
|
380,204 |
|
Other assets |
|
41,083 |
|
|
131,608 |
|
Assets held for
sale |
|
1,615,486 |
|
|
1,901,818 |
|
Total assets |
|
$ |
6,536,501 |
|
|
$ |
6,644,189 |
|
LIABILITIES |
|
|
|
|
Reserve for loss and
loss adjustment expenses |
|
$ |
2,851,685 |
|
|
$ |
2,386,722 |
|
Unearned premiums |
|
1,298,933 |
|
|
1,230,882 |
|
Accrued expenses and
other liabilities |
|
18,460 |
|
|
90,069 |
|
Senior notes -
principal amount |
|
262,500 |
|
|
262,500 |
|
Less:
unamortized debt issuance costs |
|
7,860 |
|
|
8,018 |
|
Senior notes, net |
|
254,640 |
|
|
254,482 |
|
Liabilities held for
sale |
|
1,339,618 |
|
|
1,449,408 |
|
Total liabilities |
|
5,763,336 |
|
|
5,411,563 |
|
Commitments and
Contingencies |
|
|
|
|
EQUITY |
|
|
|
|
Preference shares |
|
465,000 |
|
|
465,000 |
|
Common shares |
|
879 |
|
|
877 |
|
Additional paid-in
capital |
|
749,214 |
|
|
748,113 |
|
Accumulated other
comprehensive (loss) income |
|
(116,369 |
) |
|
13,354 |
|
(Accumulated deficit)
retained earnings |
|
(294,656 |
) |
|
35,472 |
|
Treasury shares, at
cost |
|
(31,514 |
) |
|
(30,642 |
) |
Total Maiden
Shareholders’ Equity |
|
772,554 |
|
|
1,232,174 |
|
Noncontrolling
interest in subsidiaries |
|
611 |
|
|
452 |
|
Total Equity |
|
773,165 |
|
|
1,232,626 |
|
Total Liabilities and Equity |
|
$ |
6,536,501 |
|
|
$ |
6,644,189 |
|
|
|
|
|
|
Book value per
common share(1) |
|
$ |
3.71 |
|
|
$ |
9.25 |
|
|
|
|
|
|
Common shares
outstanding |
|
82,942,737 |
|
|
82,974,895 |
|
|
|
|
|
|
|
|
|
MAIDEN HOLDINGS, LTD. |
CONSOLIDATED STATEMENTS OF
INCOME |
(In thousands of U.S. dollars, except share
and per share data) |
|
|
|
|
|
|
|
For the Three Months EndedSeptember
30, |
|
For the Nine Months EndedSeptember
30, |
|
|
2018 |
|
2017 |
|
2018 |
|
2017 |
|
|
(Unaudited) |
|
(Unaudited) |
Revenues: |
|
|
|
|
|
|
|
|
Gross premiums
written |
|
$ |
484,494 |
|
|
$ |
443,001 |
|
|
$ |
1,629,347 |
|
|
$ |
1,650,762 |
|
Net premiums
written |
|
$ |
482,806 |
|
|
$ |
432,677 |
|
|
$ |
1,626,485 |
|
|
$ |
1,603,414 |
|
Change in unearned
premiums |
|
37,271 |
|
|
24,601 |
|
|
(85,207 |
) |
|
(90,977 |
) |
Net premiums earned |
|
520,077 |
|
|
457,278 |
|
|
1,541,278 |
|
|
1,512,437 |
|
Other insurance
revenue |
|
1,870 |
|
|
2,488 |
|
|
7,629 |
|
|
7,816 |
|
Net investment
income |
|
34,419 |
|
|
30,950 |
|
|
101,548 |
|
|
91,597 |
|
Net realized (losses)
gains on investment |
|
(225 |
) |
|
5,859 |
|
|
(282 |
) |
|
8,316 |
|
Total
other-than-temporary impairment losses |
|
(479 |
) |
|
— |
|
|
(479 |
) |
|
— |
|
Total revenues |
|
555,662 |
|
|
496,575 |
|
|
1,649,694 |
|
|
1,620,166 |
|
Expenses: |
|
|
|
|
|
|
|
|
Net loss and loss
adjustment expenses |
|
600,296 |
|
|
370,847 |
|
|
1,323,503 |
|
|
1,090,608 |
|
Commission and other
acquisition expenses |
|
167,618 |
|
|
145,352 |
|
|
497,026 |
|
|
487,771 |
|
General and
administrative expenses |
|
18,936 |
|
|
15,439 |
|
|
48,343 |
|
|
38,161 |
|
Total expenses |
|
786,850 |
|
|
531,638 |
|
|
1,868,872 |
|
|
1,616,540 |
|
Non-GAAP (loss)
income from operations(2) |
|
(231,188 |
) |
|
(35,063 |
) |
|
(219,178 |
) |
|
3,626 |
|
Other
expenses |
|
|
|
|
|
|
|
|
Interest and
amortization expenses |
|
(4,829 |
) |
|
(4,829 |
) |
|
(14,487 |
) |
|
(18,430 |
) |
Accelerated
amortization of senior note issuance cost |
|
— |
|
|
— |
|
|
— |
|
|
(2,809 |
) |
Foreign exchange
(losses) gains |
|
(552 |
) |
|
(3,550 |
) |
|
1,862 |
|
|
(12,193 |
) |
Total other expenses |
|
(5,381 |
) |
|
(8,379 |
) |
|
(12,625 |
) |
|
(33,432 |
) |
Loss before
income taxes |
|
(236,569 |
) |
|
(43,442 |
) |
|
(231,803 |
) |
|
(29,806 |
) |
Less: income tax
(benefit) expense |
|
(7,437 |
) |
|
1,704 |
|
|
(930 |
) |
|
(1,978 |
) |
Net loss from continuing operations |
|
(229,132 |
) |
|
(45,146 |
) |
|
(230,873 |
) |
|
(27,828 |
) |
Loss from discontinued operations, net of income
tax |
|
(71,100 |
) |
|
(9,908 |
) |
|
(44,336 |
) |
|
(17,060 |
) |
Net
loss |
|
(300,232 |
) |
|
(55,054 |
) |
|
(275,209 |
) |
|
(44,888 |
) |
Add: net (income) loss
attributable to noncontrolling interest |
|
(62 |
) |
|
3 |
|
|
(180 |
) |
|
34 |
|
Net loss
attributable to Maiden |
|
(300,294 |
) |
|
(55,051 |
) |
|
(275,389 |
) |
|
(44,854 |
) |
Dividends on preference
shares(3) |
|
(8,545 |
) |
|
(8,545 |
) |
|
(25,636 |
) |
|
(20,611 |
) |
Net loss
attributable to Maiden common shareholders |
|
$ |
(308,839 |
) |
|
$ |
(63,596 |
) |
|
$ |
(301,025 |
) |
|
$ |
(65,465 |
) |
Basic and
diluted loss from continuing operations per common share
attributable to Maiden shareholders(15) |
|
$ |
(2.86 |
) |
|
$ |
(0.62 |
) |
|
$ |
(3.09 |
) |
|
$ |
(0.56 |
) |
Basic and
diluted loss from discontinued operations per common share
attributable to Maiden shareholders(15) |
|
(0.86 |
) |
|
(0.12 |
) |
|
(0.53 |
) |
|
(0.20 |
) |
Basic and
diluted loss per common share attributable to Maiden
shareholders(15) |
|
$ |
(3.72 |
) |
|
$ |
(0.74 |
) |
|
$ |
(3.62 |
) |
|
$ |
(0.76 |
) |
Dividends
declared per common share |
|
$ |
0.05 |
|
|
$ |
0.15 |
|
|
$ |
0.35 |
|
|
$ |
0.45 |
|
Annualized
return on average common equity |
|
(258.4 |
)% |
|
(25.3 |
)% |
|
(74.9 |
)% |
|
(8.7 |
)% |
Weighted
average number of common shares - basic and
diluted(15) |
|
83,089,172 |
|
|
85,859,201 |
|
|
83,085,441 |
|
|
86,256,481 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MAIDEN HOLDINGS, LTD. |
SUPPLEMENTAL FINANCIAL DATA - SEGMENT
INFORMATION (Unaudited) |
(in thousands of U.S. dollars) |
|
|
|
|
|
|
|
|
|
For the Three Months Ended September 30, 2018 |
|
DiversifiedReinsurance |
|
AmTrustReinsurance |
|
Other |
|
Total |
Gross premiums
written |
|
$ |
31,699 |
|
|
$ |
452,795 |
|
|
$ |
— |
|
|
$ |
484,494 |
|
Net premiums
written |
|
$ |
31,291 |
|
|
$ |
451,515 |
|
|
$ |
— |
|
|
$ |
482,806 |
|
Net premiums
earned |
|
$ |
28,784 |
|
|
$ |
491,293 |
|
|
$ |
— |
|
|
$ |
520,077 |
|
Other insurance
revenue |
|
1,870 |
|
|
— |
|
|
— |
|
|
1,870 |
|
Net loss and loss
adjustment expenses ("loss and LAE") |
|
(19,764 |
) |
|
(579,163 |
) |
|
(1,369 |
) |
|
(600,296 |
) |
Commission and other
acquisition expenses |
|
(8,961 |
) |
|
(158,657 |
) |
|
— |
|
|
(167,618 |
) |
General and
administrative expenses(4) |
|
(4,256 |
) |
|
(952 |
) |
|
— |
|
|
(5,208 |
) |
Underwriting loss(5) |
|
$ |
(2,327 |
) |
|
$ |
(247,479 |
) |
|
$ |
(1,369 |
) |
|
(251,175 |
) |
Reconciliation
to net loss from continuing operations |
|
|
|
|
|
|
|
|
Net investment income
and realized losses on investment |
|
|
|
|
|
|
|
34,194 |
|
Total
other-than-temporary impairment losses |
|
|
|
|
|
|
|
(479 |
) |
Interest and
amortization expenses |
|
|
|
|
|
|
|
(4,829 |
) |
Foreign exchange
losses |
|
|
|
|
|
|
|
(552 |
) |
Other general and
administrative expenses(4) |
|
|
|
|
|
|
|
(13,728 |
) |
Income tax benefit |
|
|
|
|
|
|
|
7,437 |
|
Net loss from
continuing operations |
|
|
|
|
|
|
|
$ |
(229,132 |
) |
|
|
|
|
|
|
|
|
|
Net loss and LAE
ratio(6) |
|
64.5 |
% |
|
117.9 |
% |
|
|
|
115.0 |
% |
Commission and other
acquisition expense ratio(7) |
|
29.2 |
% |
|
32.3 |
% |
|
|
|
32.1 |
% |
General and
administrative expense ratio(8) |
|
13.9 |
% |
|
0.2 |
% |
|
|
|
3.6 |
% |
Expense Ratio(9) |
|
43.1 |
% |
|
32.5 |
% |
|
|
|
35.7 |
% |
Combined ratio(10) |
|
107.6 |
% |
|
150.4 |
% |
|
|
|
150.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
MAIDEN HOLDINGS, LTD. |
SUPPLEMENTAL FINANCIAL DATA - SEGMENT
INFORMATION (Unaudited) |
(in thousands of U.S. dollars) |
|
|
|
|
|
|
|
|
|
For the Three Months Ended September 30, 2017 |
|
DiversifiedReinsurance |
|
AmTrustReinsurance |
|
Other |
|
Total |
Gross premiums
written |
|
$ |
22,982 |
|
|
$ |
420,019 |
|
|
$ |
— |
|
|
$ |
443,001 |
|
Net premiums
written |
|
$ |
22,484 |
|
|
$ |
410,193 |
|
|
$ |
— |
|
|
$ |
432,677 |
|
Net premiums
earned |
|
$ |
20,925 |
|
|
$ |
436,353 |
|
|
$ |
— |
|
|
$ |
457,278 |
|
Other insurance
revenue |
|
2,488 |
|
|
— |
|
|
— |
|
|
2,488 |
|
Net loss and LAE |
|
(13,979 |
) |
|
(355,030 |
) |
|
(1,838 |
) |
|
(370,847 |
) |
Commission and other
acquisition expenses |
|
(6,702 |
) |
|
(138,650 |
) |
|
— |
|
|
(145,352 |
) |
General and
administrative expenses(4) |
|
(4,158 |
) |
|
(771 |
) |
|
— |
|
|
(4,929 |
) |
Underwriting loss(5) |
|
$ |
(1,426 |
) |
|
$ |
(58,098 |
) |
|
$ |
(1,838 |
) |
|
(61,362 |
) |
Reconciliation
to net loss from continuing operations |
|
|
|
|
|
|
|
|
Net investment income
and realized gains on investment |
|
|
|
|
|
|
|
36,809 |
|
Interest and
amortization expenses |
|
|
|
|
|
|
|
(4,829 |
) |
Foreign exchange
losses |
|
|
|
|
|
|
|
(3,550 |
) |
Other general and
administrative expenses(4) |
|
|
|
|
|
|
|
(10,510 |
) |
Income tax expense |
|
|
|
|
|
|
|
(1,704 |
) |
Net loss from
continuing operations |
|
|
|
|
|
|
|
$ |
(45,146 |
) |
|
|
|
|
|
|
|
|
|
Net loss and LAE
ratio(6) |
|
59.7 |
% |
|
81.4 |
% |
|
|
|
80.6 |
% |
Commission and other
acquisition expense ratio(7) |
|
28.6 |
% |
|
31.7 |
% |
|
|
|
31.6 |
% |
General and
administrative expense ratio(8) |
|
17.8 |
% |
|
0.2 |
% |
|
|
|
3.4 |
% |
Expense Ratio(9) |
|
46.4 |
% |
|
31.9 |
% |
|
|
|
35.0 |
% |
Combined ratio(10) |
|
106.1 |
% |
|
113.3 |
% |
|
|
|
115.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
MAIDEN HOLDINGS, LTD. |
SUPPLEMENTAL FINANCIAL DATA - SEGMENT
INFORMATION (Unaudited) |
(in thousands of U.S. dollars) |
|
|
|
|
|
|
|
|
|
For the Nine Months Ended September 30, 2018 |
|
DiversifiedReinsurance |
|
AmTrustReinsurance |
|
Other |
|
Total |
Gross premiums
written |
|
$ |
111,139 |
|
|
$ |
1,518,208 |
|
|
$ |
— |
|
|
$ |
1,629,347 |
|
Net premiums
written |
|
$ |
109,279 |
|
|
$ |
1,517,206 |
|
|
$ |
— |
|
|
$ |
1,626,485 |
|
Net premiums
earned |
|
$ |
82,838 |
|
|
$ |
1,458,440 |
|
|
$ |
— |
|
|
$ |
1,541,278 |
|
Other insurance
revenue |
|
7,629 |
|
|
— |
|
|
— |
|
|
7,629 |
|
Net loss and loss
adjustment expenses ("loss and LAE") |
|
(51,828 |
) |
|
(1,270,306 |
) |
|
(1,369 |
) |
|
(1,323,503 |
) |
Commission and other
acquisition expenses |
|
(28,261 |
) |
|
(468,765 |
) |
|
— |
|
|
(497,026 |
) |
General and
administrative expenses(4) |
|
(13,330 |
) |
|
(2,954 |
) |
|
— |
|
|
(16,284 |
) |
Underwriting loss(5) |
|
$ |
(2,952 |
) |
|
$ |
(283,585 |
) |
|
$ |
(1,369 |
) |
|
(287,906 |
) |
Reconciliation
to net loss from continuing operations |
|
|
|
|
|
|
|
|
Net investment income
and realized losses on investment |
|
|
|
|
|
|
|
101,266 |
|
Total
other-than-temporary impairment losses |
|
|
|
|
|
|
|
(479 |
) |
Interest and
amortization expenses |
|
|
|
|
|
|
|
(14,487 |
) |
Foreign exchange
gains |
|
|
|
|
|
|
|
1,862 |
|
Other general and
administrative expenses(4) |
|
|
|
|
|
|
|
(32,059 |
) |
Income tax benefit |
|
|
|
|
|
|
|
930 |
|
Net loss from
continuing operations |
|
|
|
|
|
|
|
$ |
(230,873 |
) |
|
|
|
|
|
|
|
|
|
Net loss and LAE
ratio(6) |
|
57.3 |
% |
|
87.1 |
% |
|
|
|
85.5 |
% |
Commission and other
acquisition expense ratio(7) |
|
31.3 |
% |
|
32.1 |
% |
|
|
|
32.1 |
% |
General and
administrative expense ratio(8) |
|
14.7 |
% |
|
0.2 |
% |
|
|
|
3.1 |
% |
Expense Ratio(9) |
|
46.0 |
% |
|
32.3 |
% |
|
|
|
35.2 |
% |
Combined ratio(10) |
|
103.3 |
% |
|
119.4 |
% |
|
|
|
120.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
MAIDEN HOLDINGS, LTD. |
SUPPLEMENTAL FINANCIAL DATA - SEGMENT
INFORMATION (Unaudited) |
(in thousands of U.S. dollars) |
|
|
|
|
|
|
|
|
|
For the Nine Months Ended September 30, 2017 |
|
DiversifiedReinsurance |
|
AmTrustReinsurance |
|
Other |
|
Total |
Gross premiums
written |
|
$ |
75,085 |
|
|
$ |
1,575,677 |
|
|
$ |
— |
|
|
$ |
1,650,762 |
|
Net premiums
written |
|
$ |
73,434 |
|
|
$ |
1,529,980 |
|
|
$ |
— |
|
|
$ |
1,603,414 |
|
Net premiums
earned |
|
$ |
61,626 |
|
|
$ |
1,450,811 |
|
|
$ |
— |
|
|
$ |
1,512,437 |
|
Other insurance
revenue |
|
7,816 |
|
|
— |
|
|
— |
|
|
7,816 |
|
Net loss and LAE |
|
(41,548 |
) |
|
(1,047,222 |
) |
|
(1,838 |
) |
|
(1,090,608 |
) |
Commission and other
acquisition expenses |
|
(21,982 |
) |
|
(465,789 |
) |
|
— |
|
|
(487,771 |
) |
General and
administrative expenses(4) |
|
(11,831 |
) |
|
(2,240 |
) |
|
— |
|
|
(14,071 |
) |
Underwriting loss(5) |
|
$ |
(5,919 |
) |
|
$ |
(64,440 |
) |
|
$ |
(1,838 |
) |
|
(72,197 |
) |
Reconciliation
to net loss from continuing operations |
|
|
|
|
|
|
|
|
Net investment income
and realized gains on investment |
|
|
|
|
|
|
|
99,913 |
|
Interest and
amortization expenses |
|
|
|
|
|
|
|
(18,430 |
) |
Accelerated
amortization of senior note issuance cost |
|
|
|
|
|
|
|
(2,809 |
) |
Foreign exchange
losses |
|
|
|
|
|
|
|
(12,193 |
) |
Other general and
administrative expenses(4) |
|
|
|
|
|
|
|
(24,090 |
) |
Income tax expense |
|
|
|
|
|
|
|
1,978 |
|
Net loss from
continuing operations |
|
|
|
|
|
|
|
$ |
(27,828 |
) |
|
|
|
|
|
|
|
|
|
Net loss and LAE
ratio(6) |
|
59.8 |
% |
|
72.2 |
% |
|
|
|
71.7 |
% |
Commission and other
acquisition expense ratio(7) |
|
31.7 |
% |
|
32.1 |
% |
|
|
|
32.1 |
% |
General and
administrative expense ratio(8) |
|
17.0 |
% |
|
0.1 |
% |
|
|
|
2.5 |
% |
Expense Ratio(9) |
|
48.7 |
% |
|
32.2 |
% |
|
|
|
34.6 |
% |
Combined ratio(10) |
|
108.5 |
% |
|
104.4 |
% |
|
|
|
106.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
MAIDEN HOLDINGS, LTD. |
NON-GAAP FINANCIAL MEASURES
(Unaudited) |
(In thousands of U.S. dollars, except share
and per share data) |
|
|
|
|
|
|
|
For the Three Months EndedSeptember
30, |
|
For the Nine Months EndedSeptember
30, |
|
|
2018 |
|
2017 |
|
2018 |
|
2017 |
Non-GAAP
operating loss attributable to Maiden common
shareholders(11) |
|
$ |
(235,114 |
) |
|
$ |
(54,159 |
) |
|
$ |
(256,421 |
) |
|
$ |
(39,881 |
) |
Non-GAAP basic
and diluted operating loss per common share attributable to Maiden
shareholders(15) |
|
$ |
(2.83 |
) |
|
$ |
(0.63 |
) |
|
$ |
(3.09 |
) |
|
$ |
(0.46 |
) |
Annualized
non-GAAP operating return on average common
equity(12) |
|
(196.7 |
)% |
|
(21.6 |
)% |
|
(63.8 |
)% |
|
(5.3 |
)% |
Reconciliation: |
|
|
|
|
|
|
|
|
Net loss attributable
to Maiden common shareholders |
|
$ |
(308,839 |
) |
|
$ |
(63,596 |
) |
|
$ |
(301,025 |
) |
|
$ |
(65,465 |
) |
Add (subtract): |
|
|
|
|
|
|
|
|
Net
realized losses (gains) on investment |
|
225 |
|
|
(5,859 |
) |
|
282 |
|
|
(8,316 |
) |
Total
other-than-temporary impairment losses |
|
479 |
|
|
— |
|
|
479 |
|
|
— |
|
Foreign
exchange losses (gains) |
|
552 |
|
|
3,550 |
|
|
(1,862 |
) |
|
12,193 |
|
Loss from
discontinued operations, net of income tax |
|
71,100 |
|
|
9,908 |
|
|
44,336 |
|
|
17,060 |
|
Divested
NGHC Quota Share run-off |
|
1,369 |
|
|
1,838 |
|
|
1,369 |
|
|
1,838 |
|
Accelerated amortization of senior note issuance cost |
|
— |
|
|
— |
|
|
— |
|
|
2,809 |
|
Non-GAAP
operating loss attributable to Maiden common
shareholders(11) |
|
$ |
(235,114 |
) |
|
$ |
(54,159 |
) |
|
$ |
(256,421 |
) |
|
$ |
(39,881 |
) |
|
|
|
|
|
|
|
|
|
Weighted average number
of common shares - basic and diluted(15) |
|
83,089,172 |
|
|
85,859,201 |
|
|
83,085,441 |
|
|
86,256,481 |
|
Reconciliation: |
|
|
|
|
|
|
|
|
Diluted loss per common
share attributable to Maiden shareholders |
|
$ |
(3.72 |
) |
|
$ |
(0.74 |
) |
|
$ |
(3.62 |
) |
|
$ |
(0.76 |
) |
Add (subtract): |
|
|
|
|
|
|
|
|
Net
realized losses (gains) on investment |
|
— |
|
|
(0.07 |
) |
|
— |
|
|
(0.10 |
) |
Total
other-than-temporary impairment losses |
|
0.01 |
|
|
— |
|
|
0.01 |
|
|
— |
|
Foreign
exchange losses (gains) |
|
0.01 |
|
|
0.04 |
|
|
(0.03 |
) |
|
0.14 |
|
Loss from
discontinued operations, net of income tax |
|
0.85 |
|
|
0.12 |
|
|
0.53 |
|
|
0.20 |
|
Divested
NGHC Quota Share run-off |
|
0.02 |
|
|
0.02 |
|
|
0.02 |
|
|
0.02 |
|
Accelerated amortization of senior note issuance cost |
|
— |
|
|
— |
|
|
— |
|
|
0.04 |
|
Non-GAAP
diluted operating loss per common share attributable to Maiden
shareholders |
|
$ |
(2.83 |
) |
|
$ |
(0.63 |
) |
|
$ |
(3.09 |
) |
|
$ |
(0.46 |
) |
|
|
|
|
|
|
|
|
|
Reconciliation
of net loss attributable to Maiden to non-GAAP (loss) income from
operations: |
|
|
|
|
|
|
|
|
Net loss attributable
to Maiden |
|
$ |
(300,294 |
) |
|
$ |
(55,051 |
) |
|
$ |
(275,389 |
) |
|
$ |
(44,854 |
) |
Add (subtract): |
|
|
|
|
|
|
|
|
Foreign
exchange losses (gains) |
|
552 |
|
|
3,550 |
|
|
(1,862 |
) |
|
12,193 |
|
Interest
and amortization expenses |
|
4,829 |
|
|
4,829 |
|
|
14,487 |
|
|
18,430 |
|
Accelerated amortization of senior note issuance cost |
|
— |
|
|
— |
|
|
— |
|
|
2,809 |
|
Income
tax (benefit) expense |
|
(7,437 |
) |
|
1,704 |
|
|
(930 |
) |
|
(1,978 |
) |
Loss from
discontinued operations, net of income tax |
|
71,100 |
|
|
9,908 |
|
|
44,336 |
|
|
17,060 |
|
Net
income (loss) attributable to noncontrolling interest |
|
62 |
|
|
(3 |
) |
|
180 |
|
|
(34 |
) |
Non-GAAP (loss)
income from operations(2) |
|
$ |
(231,188 |
) |
|
$ |
(35,063 |
) |
|
$ |
(219,178 |
) |
|
$ |
3,626 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MAIDEN HOLDINGS, LTD. |
NON-GAAP FINANCIAL MEASURES
(Unaudited) |
(In thousands of U.S. dollars, except share and
per share data) |
|
|
|
|
|
|
|
September 30,2018 |
|
December 31,2017 |
Investable
assets: |
|
|
|
|
Total investments |
|
$ |
3,837,024 |
|
|
$ |
3,811,917 |
|
Cash and cash
equivalents |
|
94,578 |
|
|
54,470 |
|
Restricted cash and
cash equivalents |
|
169,996 |
|
|
94,905 |
|
Loan to related
party |
|
167,975 |
|
|
167,975 |
|
Total investable
assets(13) |
|
$ |
4,269,573 |
|
|
$ |
4,129,267 |
|
|
|
|
|
|
|
|
September 30,2018 |
|
December 31,2017 |
Capital: |
|
|
|
|
Preference shares |
|
$ |
465,000 |
|
|
$ |
465,000 |
|
Common shareholders'
equity |
|
307,554 |
|
|
767,174 |
|
Total Maiden
shareholders' equity |
|
772,554 |
|
|
1,232,174 |
|
2016 Senior Notes |
|
110,000 |
|
|
110,000 |
|
2013 Senior Notes |
|
152,500 |
|
|
152,500 |
|
Total capital
resources(14) |
|
$ |
1,035,054 |
|
|
$ |
1,494,674 |
|
|
|
|
|
|
|
|
|
|
(1) |
|
Book
value per common share is calculated using Maiden common
shareholders’ equity (shareholders' equity excluding the aggregate
liquidation value of our preference shares) divided by the number
of common shares outstanding. |
|
|
|
(2) |
|
Non-GAAP
(loss) income from operations is a non-GAAP financial measure
defined by the Company as net income (loss) attributable to Maiden
excluding foreign exchange and other gains and losses, interest and
amortization expenses, accelerated amortization of senior note
issuance cost, income tax (benefit) expense, loss from discontinued
operations, net of income tax and net income or loss attributable
to noncontrolling interest and should not be considered as an
alternative to net income (loss). The Company’s management
believes that non-GAAP (loss) 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
(loss) income from operations enables readers of this information
to more clearly understand the essential operating results of the
Company. The Company’s measure of non-GAAP (loss) income from
operations may not be comparable to similarly titled measures used
by other companies. |
|
|
|
(3) |
|
Dividends on preference shares consist of $3,094 and $9,282 paid to
Preference shares - Series A for the three and nine months ended
September 30, 2018 and 2017, respectively, $2,938 and $8,816
paid to Preference shares - Series C for the three and nine months
ended September 30, 2018 and 2017, respectively, $2,513 paid
to Preference shares - Series D for the three months ended
September 30, 2018 and 2017 and $7,538 and $2,513 paid
to Preference shares - Series D for the nine months ended
September 30, 2018 and 2017, respectively. |
|
|
|
(4) |
|
Underwriting related general and administrative expenses is a
non-GAAP measure and includes expenses which are segregated for
analytical purposes as a component of underwriting income. |
|
|
|
(5) |
|
Underwriting (loss) income is a non-GAAP measure and is calculated
as net premiums earned plus other insurance revenue less net loss
and LAE, commission and other acquisition expenses and general and
administrative expenses directly related to underwriting
activities. Management believes that this measure is important in
evaluating the underwriting performance of the Company and its
segments. This measure is also a useful tool to measure the
profitability of the Company separately from the investment results
and is also a widely used performance indicator in the insurance
industry. |
|
|
|
(6) |
|
Calculated by dividing net loss and LAE 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 the general and administrative expense
ratio. |
|
|
|
(10) |
|
Calculated by adding together the net loss and LAE ratio and the
expense ratio. |
|
|
|
(11) |
|
Non-GAAP
operating (loss) earnings is a non-GAAP financial measure defined
by the Company as net (loss) income attributable to Maiden common
shareholders excluding realized investment gains and losses, total
other-than-temporary impairment losses, foreign exchange and other
gains and losses, loss from discontinued operations, net of income
tax, divested NGHC Quota Share run-off and accelerated amortization
of senior note issuance cost and should not be considered as an
alternative to net income (loss). The Company's management believes
that non-GAAP operating (loss) earnings is a useful indicator of
trends in the Company's underlying operations. The Company's
measure of non-GAAP operating (loss) earnings may not be comparable
to similarly titled measures used by other companies. |
|
|
|
(12) |
|
Non-GAAP
operating return on average common equity is a non-GAAP financial
measure. Management uses non-GAAP operating return on average
common shareholders' equity as a measure of profitability that
focuses on the return to Maiden common shareholders. It is
calculated using non-GAAP operating (loss) earnings attributable to
Maiden common shareholders divided by average Maiden common
shareholders' equity. |
|
|
|
(13) |
|
Investable assets is the total of the Company's investments, cash
and cash equivalents and loan to a related party. |
|
|
|
(14) |
|
Total
capital resources is the sum of the Company's principal amount of
debt and Maiden shareholders' equity. |
|
|
|
(15) |
|
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. |
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