Market Overview

Maiden Holdings, Ltd. Announces Second Quarter 2016 Net Income Attributable to Common Shareholders of $30.9 Million or $0.39 Per Diluted Common Share and Operating Earnings(1) of $28.4 Million or $0.37 Per Diluted Common Share

Share:

Highlights for the quarter ended June 30, 2016

  • Net income attributable to Maiden common shareholders of $30.9 million, or $0.39 per diluted common share compared with net income attributable to Maiden common shareholders of $20.5 million, or $0.27 per diluted common share in the second quarter of 2015;
  • Annualized return on common equity of 12.3% compared to 8.8% in the second quarter of 2015;
  • Net operating earnings(1) of $28.4 million, or $0.37 per diluted common share compared with net operating earnings of $28.4 million, or $0.37 per diluted common share in the second quarter of 2015;
  • Annualized operating return on common equity(7) of 11.3% compared to 12.2% in the second quarter of 2015;
  • Gross premiums written increased 2.1% to $688.3 million compared to the second quarter of 2015;
  • Net premiums written increased 3.3% to $650.4 million compared to the second quarter of 2015;    
  • Combined ratio(12) of 98.6% compared to 99.2% in the second quarter of 2015;
  • Net investment income was $35.3 million compared to $35.2 million in the second quarter of 2015;
  • Book value per common share(4) of $14.18 at June 30, 2016 increased 7.2% versus at March 31, 2016; and
  • In June, Maiden reduced its cost of capital with the issuance of $110.0 million 6.625% Notes and subsequent redemption of its $107.5 million Maiden Holdings North America, Ltd. 8.25% Notes.

Highlights for the six months ended June 30, 2016

  • Net income attributable to Maiden common shareholders of $58.1 million or $0.75 per diluted common share compared with $52.9 million, or $0.69 per diluted common share in the first six months of 2015;
  • Annualized return on common equity of 12.2% compared to 11.6% in the first half of 2015;
  • Net operating earnings(1) of $56.8 million, or $0.73 per diluted common share compared with net operating earnings of $55.0 million, or $0.71 per diluted common share in the first six months of 2015;
  • Annualized operating return on common equity(1) of 11.9% compared to 12.1% in the first half of 2015;
  • Gross premiums written increased 2.9% to $1.6 billion compared to the first half of 2015;
  • Net premiums written increased 1.2% to $1.4 billion in the first half of 2016 compared to the same period last year;
  • Combined ratio(12) of 98.7% was the same as the first six months of 2015; and
  • Net investment income was $71.6 million, an increase of 12.9% compared to the first half of 2015.

HAMILTON, Bermuda, Aug. 04, 2016 (GLOBE NEWSWIRE) -- Maiden Holdings, Ltd. (NASDAQ: MHLD) ("Maiden" or "the Company") today reported second quarter 2016 net income attributable to Maiden common shareholders of $30.9 million or $0.39 per diluted common share compared to net income attributable to Maiden common shareholders of $20.5 million or $0.27 per diluted common share in the second quarter of 2015.   Net operating earnings(1) were $28.4 million, or $0.37 per diluted common share compared with net operating earnings of $28.4 million, or $0.37 per diluted common share in the second quarter of 2015.

Commenting on the Company's results, Art Raschbaum, Chief Executive Officer of Maiden, said: "The second quarter reflects a continued focus on disciplined growth, improving our cost of capital and delivering value to our regional and specialty insurer clients.  Notwithstanding a competitive operating environment and continued pressure on investment yields, our overall results reflect continued underwriting profitability and strong growth in book value while achieving an annualized return on common equity of 12.3% and an annualized operating return on common equity of 11.3%. This marks the 12th consecutive quarter of double digit operating returns.  While revenue growth has moderated for our AmTrust Reinsurance segment versus a strong prior year quarter impacted by acquisitions, the Diversified Reinsurance segment growth continues to benefit primarily from the expansion of existing client relationships in the U.S. and our developing European capital solutions business.  Going forward, earnings should benefit from investment of our large quarter-end cash balance and continued implementation of key strategic initiatives in the U.S. and Europe."  

Results for the quarter ended June 30, 2016
Maiden reported second quarter 2016 net income attributable to common shareholders of $30.9 million or $0.39 per diluted common share compared with $20.5 million or $0.27 per diluted common share in the second quarter of 2015.  Net operating earnings(1) were $28.4 million, or $0.37 per diluted common share in the second quarter of 2016 compared with an equivalent result in the second quarter of 2015.

In the second quarter of 2016, gross premiums written increased 2.1% to $688.3 million from $674.2 million in the second quarter of 2015.  The Diversified Reinsurance segment's gross premiums written totaled $164.8 million, an increase of 8.7% versus the second quarter of 2015. In the AmTrust Reinsurance segment, gross premiums written were $523.5 million compared to $522.5 million in the second quarter of 2015. This segment was impacted by the commutation announced in the fourth quarter of 2015 and slower growth following the completion of AmTrust's integration of Tower Group.    

Net premiums written totaled $650.4 million in the second quarter of 2016, an increase of 3.3% compared to the second quarter of 2015. 

Net premiums earned of $637.6 million increased 4.6% compared to the second quarter of 2015.  In the Diversified Reinsurance segment, net premiums earned increased 3.2% to $190.8 million compared to the second quarter of 2015.  The AmTrust Reinsurance segment net earned premiums were up 5.2% to $446.8 million compared to the second quarter of 2015. 

Net loss and loss adjustment expenses of $427.0 million were up 2.9% compared to the second quarter of 2015.  

The loss ratio(8) of 66.8% was lower than the 67.8% reported in the second quarter of 2015.

Commission and other acquisition expenses, increased 5.7% to $185.7 million in the second quarter of 2016, compared to the same quarter a year ago.  The expense ratio(11) increased to 31.8% for the first quarter of 2016 compared with 31.4% in the same quarter last year, reflecting changes in business mix.  General and administrative expenses for the second quarter of 2016 totaled $17.3 million, a 6.1% increase compared with $16.3 million in the second quarter of 2015. The general and administrative expense ratio(10) was 2.7% in the second quarter of 2016, which is the same as the second quarter of 2015. 

The combined ratio(12) for the second quarter of 2016 totaled 98.6% compared with 99.2% in the second quarter of 2015.  The Diversified Reinsurance segment combined ratio was 103.4% in the second quarter of 2016, down from 103.6% in the second quarter of 2015, as commercial auto adverse development continued in the quarter. The AmTrust Reinsurance segment reported a combined ratio of 94.9% in the second quarter of 2016 compared to 95.2% in the second quarter of 2015.      

Net investment income of $35.3 million in the second quarter of 2016 increased slightly compared to the second quarter of 2015, which included $5.9 million of additional income from two called securities.  As of June 30, 2016, the average yield on the fixed income portfolio (excluding cash) is 3.29% with an average duration of 4.55 years.  Cash and cash equivalents were $505.8 million at June 30, 2016 or $173.3 million higher than at year-end 2015 as the Company received higher levels of cash from investment activities and held more cash during the quarter in light of the rate volatility during the second quarter of 2016.

Total assets increased 10.0% to $6.3 billion at June 30, 2016 compared to $5.7 billion at year-end 2015.   Shareholders' equity was $1.5 billion, up 13.5% compared to December 31, 2015.  Book value per common share was $14.18 at June 30, 2016 or 20.5% higher than at December 31, 2015. 
  
During the second quarter of 2016, the Board of Directors declared dividends of $0.14 per common share, $0.515625 per Series A preference share, $0.90625 per Series B preference share and $0.445313 per Series C preference share.

Results for the six months ended June 30, 2016
Net income attributable to Maiden common shareholders was $58.1 million or $0.75 per diluted common share in the first six months of 2016 compared to net income attributable to Maiden common shareholders of $52.9 million or $0.69 per diluted common share in the first half of 2015.  Net operating earnings(1) for the first six months of 2016 were $56.8 million, or $0.73 per diluted common share compared with $55.0 million, or $0.71 per diluted common share in the first half of 2015. 

In the first half of 2016, gross premiums written totaled $1.6 billion, an increase of 2.9% compared to the first six months of 2015.  In the first half of 2016, net premiums written totaled $1.4 billion, an increase of 1.2% compared to the first six months of 2015.  Net premiums written in the Diversified Reinsurance segment totaled $447.4 million, an increase of 1.9% versus the first half of 2015.  In the AmTrust Reinsurance segment, net premiums written increased by 0.8% to $995.8 million compared to the first half of 2015. 

Net premiums earned of $1.3 billion increased 5.6% compared to the first six months of 2015.  Net premiums earned decreased 3.8% in the Diversified Reinsurance segment to $363.0 million compared to the first half of 2015. The AmTrust Reinsurance segment net premiums earned were up 10.0% to $890.6 million compared to the first half 2015. 

Net loss and loss adjustment expenses of $ 830.6 million were up 4.8% compared to the first six months of 2015.  The loss ratio(8) of 65.9% was lower than the 66.3% in the first half of 2015.

Commission and other acquisition expenses, increased $26.8 million to $380.8 million in the first half of 2016 versus the comparable period a year ago, while the expense ratio(11) rose to 32.8% for the first six months of 2016 compared with 32.4% in the same period last year.  General and administrative expenses for the first half of 2016 totaled $32.8 million compared with $32.5 million in the first six months of 2015. The general and administrative expense ratio(10) decreased to 2.6% in the first half of 2016 versus 2.7% in the same period during 2015. 

The combined ratio(12) for the first half of 2016 was 98.7% and the same as the first six months of 2015.  The Diversified Reinsurance segment had a combined ratio of 103.2% in the first half of 2016 compared to 102.3% in the first six months of 2015.  The AmTrust Reinsurance segment reported a combined ratio of 95.1% in the first half of 2016 compared to 94.9% in the comparable period in 2015. 

Net investment income of $71.6 million in the first half of 2016 increased 12.9% compared to the first half of 2015. 

(1)(4)(7) 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.

(8)(10)(11)(12) 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: 52657857

Webcast: http://www.maiden.bm/news_events 

A replay of the conference call will be available beginning at 11:30 a.m. ET on August 5, 2016 through midnight on August 12, 2016. 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: 52657857; or access http://www.maiden.bm/news_events  

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 June 30, 2016, Maiden had $6.3 billion in assets and shareholders' equity of $1.5 billion.

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, 2015 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)  
   
  June 30, 2016  December 31, 2015  
   (Unaudited)  (Audited)  
 Assets       
 Fixed maturities, available-for-sale, at fair value (Amortized cost 2016: $3,374,192; 2015: $3,562,864) $  3,452,605   $  3,508,088    
 Fixed maturities, held-to-maturity, at amortized cost (Fair value 2016: $794,671; 2015: $598,975)   761,713      607,843    
 Other investments, at fair value (Cost 2016: $10,743; 2015: $10,816)   11,827      11,812    
 Total investments   4,226,145      4,127,743    
 Cash and cash equivalents   127,459      89,641    
 Restricted cash and cash equivalents   378,328      242,859    
 Accrued investment income   32,572      32,288    
 Reinsurance balances receivable, net   554,069      377,318    
 Reinsurance recoverable on unpaid losses   90,805      71,248    
 Loan to related party   167,975      167,975    
 Deferred commission and other acquisition expenses, net   455,522      397,548    
 Goodwill and intangible assets, net   80,728      81,920    
 Other assets   157,396      115,038    
 Total Assets$  6,270,999   $  5,703,578    
 Liabilities and  Equity       
 Liabilities       
 Reserve for loss and loss adjustment expenses$  2,636,631   $  2,510,101    
 Unearned premiums   1,583,477      1,354,572    
 Accrued expenses and other liabilities   168,756      139,873    
 Senior notes       
 Principal amount   362,500      360,000    
 Less unamortized debt issuance costs   11,252      10,067    
 Senior notes, net   351,248      349,933    
 Total Liabilities   4,740,112      4,354,479    
         
 Equity       
 Preference Shares   480,000      480,000    
 Common shares   751      747    
 Additional paid-in capital   581,452      579,178    
 Accumulated other comprehensive income (loss)   118,926      (23,767)  
 Retained earnings   353,576      316,184    
 Treasury shares, at cost   (4,991)    (4,521)  
 Total Maiden Shareholders' Equity   1,529,714      1,347,821    
 Noncontrolling interest in subsidiaries   1,173      1,278    
 Total Equity   1,530,887      1,349,099    
 Total Liabilities and Equity$  6,270,999   $  5,703,578    
         
         
 Book value per common share(4)$  14.18   $  11.77    
         
 Common shares outstanding 74,016,525   73,721,140   
         

 

Maiden Holdings, Ltd.
Income Statement
(in thousands (000's), except per share data)
(Unaudited)
            
 For the Three
Months Ended June
30, 2016
 For the Three
Months Ended June
30, 2015
 For the Six
Months Ended
June 30, 2016
 For the Six
Months Ended
June 30, 2015
            
Revenues:           
Gross premiums written$688,322
  $674,168
  $1,552,436
  $1,508,434 
                
Net premiums written$  650,427   $  629,618   $  1,443,258   $  1,426,601  
Change in unearned premiums (12,863)  (20,198)  (189,685)  (239,862)
Net premiums earned 637,564   609,420   1,253,573   1,186,739 
Other insurance revenue 1,525   2,252   6,351   7,231 
Net investment income 35,323   35,157   71,625   63,417 
Net realized gains on investment 334   242   2,611   1,111 
Total revenues 674,746   647,071   1,334,160   1,258,498 
Expenses:           
Net loss and loss adjustment expenses 426,989   414,927   830,610   792,333 
Commission and other acquisition expenses 185,727   175,697   380,795   354,039 
General and administrative expenses 17,290   16,301   32,786   32,498 
Total expenses 630,006   606,925   1,244,191   1,178,870 
            
Income from operations(2)   44,740      40,146      89,969      79,628  
            
Other expenses           
Interest and amortization expenses (7,193)  (7,266)  (14,458)  (14,530)
Accelerated amortization of senior note issuance cost (2,345)  -   (2,345)    -   
Amortization of intangible assets (615)  (710)  (1,230)  (1,420)
Foreign exchange and other gains (losses) 5,520   (5,191)  5,787   2,635 
Total other expenses (4,633)  (13,167)  (12,246)  (13,315)
            
Income before income taxes   40,107      26,979      77,723      66,313  
Income tax expense 220   468   1,007   1,268 
            
Net income   39,887      26,511      76,716      65,045  
Add: loss attributable to noncontrolling interest 46   92   110   47 
Net income attributable to Maiden    39,933      26,603      76,826      65,092  
Dividends on preference shares(6) (9,023)  (6,084)  (18,700)  (12,168)
Net income attributable to Maiden common shareholders$  30,910   $  20,519   $  58,126   $  52,924  
Net operating earnings attributable to Maiden common shareholders(1)$  28,431   $  28,399   $  56,778   $  55,033  
            
Basic earnings per common share attributable to Maiden shareholders$  0.42   $  0.28   $  0.79   $  0.72  
Diluted earnings  per common share attributable to Maiden shareholders$  0.39   $  0.27   $  0.75   $  0.69  
Basic operating earnings per common share attributable to Maiden shareholders$  0.38   $  0.39   $  0.77   $  0.75  
Diluted operating earnings per common share attributable to Maiden shareholders$  0.37   $  0.37   $  0.73   $  0.71  
            
Dividends declared per common share$  0.14   $  0.13   $  0.28   $  0.26  
            
Weighted average number of common shares - basic 73,997,759   73,482,506   73,934,518   73,284,559 
Adjusted weighted average number of common shares and assumed conversions - diluted 85,926,626   85,566,706   85,894,062   85,414,344 
            
Net loss and loss adjustment expense ratio(8) 66.8%  67.8%  65.9%  66.3%
Commission and other acquisition expense ratio(9) 29.1%  28.7%  30.2%  29.7%
General  and administrative expense ratio(10) 2.7%  2.7%  2.6%  2.7%
Expense ratio(11) 31.8%  31.4%  32.8%  32.4%
Combined ratio(12) 98.6%  99.2%  98.7%  98.7%
Annualized return on common equity 12.3%  8.8%  12.2%  11.6%
Annualized operating return on common equity(7) 11.3%  12.2%  11.9%  12.1%
            

 

Maiden Holdings, Ltd. 
Non - GAAP Financial Measure 
(in thousands (000's), except per share data) 
(Unaudited) 
              
                      
  For the Three Months
Ended June 30, 2016

 For the Three Months
Ended June 30, 2015

 For the Six Months
Ended June 30, 2016

 For the Six Months
Ended June 30, 2015

 
                     
Reconciliation of net income attributable to Maiden common shareholders to net operating earnings:            
Net income attributable to Maiden common shareholders$   30,910  $   20,519  $   58,126  $   52,924  
Add (subtract)            
 Net realized gains on investment     (334)     (242)     (2,611)     (1,111) 
 Foreign exchange and other (gains) losses    (5,520)     5,191      (5,787)     (2,635) 
 Amortization of intangible assets    615      710      1,230      1,420  
 Divested excess and surplus "E&S" business and NGHC run-off    125      1,931      2,895      3,855  
 Accelerated amortization of senior note issuance cost    2,345      -       2,345      -   
 Non-cash deferred tax expense     290      290      580      580  
Net operating earnings attributable to Maiden common shareholders(1)$   28,431   $   28,399   $   56,778   $   55,033   
              
Operating earnings per common share attributable to Maiden shareholders:            
              
Basic earnings per common share attributable to Maiden shareholders$   0.38  $   0.39  $   0.77  $   0.75  
Diluted earnings per common share attributable to Maiden shareholders$   0.37  $   0.37  $   0.73  $   0.71  
              
Reconciliation of net income attributable to Maiden to income from operations:            
Net income attributable to Maiden $   39,933  $   26,603  $   76,826  $   65,092  
Add (subtract)            
 Foreign exchange and other (gains) losses    (5,520)     5,191      (5,787)     (2,635) 
 Amortization of intangible assets    615      710      1,230      1,420  
 Interest and amortization expenses    7,193      7,266      14,458      14,530  
 Accelerated amortization of senior note issuance cost    2,345      -       2,345      -   
 Income tax expense     220      468      1,007      1,268  
 Loss attributable to noncontrolling interest    (46)     (92)     (110)     (47) 
Income from operations(2)$   44,740   $   40,146   $   89,969   $   79,628   
              
  June 30, 2016 December 31, 2015       
Investable assets:            
Total investments$   4,226,145  $   4,127,743        
Cash and cash equivalents    127,459      89,641        
Restricted cash and cash equivalents    378,328      242,859        
Loan to related party    167,975      167,975        
Total investable assets(3)$   4,899,907   $   4,628,218         
              
  June 30, 2016 December 31, 2015       
Capital:            
Preference shares$   480,000   $    480,000        
Common shareholders' equity    1,049,714      867,821        
Total Maiden shareholders' equity    1,529,714      1,347,821        
2011 Senior Notes    -       107,500        
2012 Senior Notes    100,000      100,000        
2013 Senior Notes    152,500      152,500        
2016 Senior Notes    110,000      -         
Total capital resources(5)$   1,892,214   $   1,707,821         
              
(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, divested excess and surplus business and NGHC run-off, accelerated amortization of senior note issuance cost and non-cash deferred tax expense 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 senior note 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 principal amount of debt and Maiden shareholders' equity. 
              
(6) Dividends on preference shares consist of $3,094 and $6,188 paid to Preference Shares - Series A and $2,990 and $5,980 paid to Preference shares - Series B during the three and six months ended June 30, 2016 and 2015, respectively, and $2,939 and $6,532 paid to Preference shares - Series C during the three and six months ended June 30, 2016, respectively. 
              
(7) Operating return on average common equity is a non-GAAP financial measures. Management uses 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 operating earnings available to common shareholders divided by average Maiden common shareholders' equity. 

 

Maiden Holdings, Ltd.
Supplemental Financial Data - Segment Information
(in thousands (000's))
(Unaudited)
                
                
For the Three Months Ended June 30, 2016 Diversified
Reinsurance
  AmTrust Reinsurance  Other  Total
Gross premiums written $   164,834   $   523,488   $   -    $   688,322 
Net premiums written $   161,294   $   489,133   $   -    $   650,427 
Net premiums earned $ 190,755   $ 446,809   $   -    $ 637,564 
Other insurance revenue   1,525       -        -      1,525 
Net loss and loss adjustment expenses     (144,246)      (282,619)      (124)      (426,989)
Commissions and other acquisition expenses     (45,496)      (140,230)      (1)      (185,727)
General and administrative expenses     (9,079)      (963)      -        (10,042)
Underwriting income (loss)  $   (6,541)  $   22,997   $   (125)  $   16,331 
                
Reconciliation to net income               
Net investment income and realized gains on investment                 35,657 
Interest and amortization expenses                 (7,193)
Accelerated amortization of senior note issuance cost                 (2,345)
Amortization of intangible assets                 (615)
Foreign exchange and other gains                 5,520 
Other general and administrative expenses                 (7,248)
Income tax expense                 (220)
Net income             $   39,887 
                
Net loss and loss adjustment expense ratio(8)   75.0%    63.3%        66.8%
Commission and other acquisition expense ratio(9)   23.7%    31.4%        29.1%
General and administrative expense ratio(10)   4.7%    0.2%        2.7%
Combined ratio(12)   103.4%    94.9%        98.6%
                
                
                
                
For the Three Months Ended June 30, 2015 Diversified
Reinsurance
  AmTrust Reinsurance  Other  Total
Gross premiums written $   151,646   $   522,522   $   -    $   674,168 
Net premiums written $   144,785   $   484,833   $   -    $   629,618 
Net premiums earned $ 184,803   $ 424,617   $   -    $   609,420 
Other insurance revenue   2,252       -        -        2,252 
Net loss and loss adjustment expenses     (142,992)      (270,142)      (1,793)      (414,927)
Commissions and other acquisition expenses     (42,412)      (133,147)      (138)      (175,697)
General and administrative expenses     (8,438)      (797)      -        (9,235)
Underwriting income (loss)  $   (6,787)  $   20,531   $   (1,931)  $   11,813 
                
Reconciliation to net income               
Net investment income and realized gains on investment                 35,399 
Interest and amortization expenses                 (7,266)
Amortization of intangible assets                 (710)
Foreign exchange and other losses                 (5,191)
Other general and administrative expenses                 (7,066)
Income tax expense                 (468)
Net income              $   26,511 
                
Net loss and loss adjustment expense ratio(8)   76.4%    63.6%        67.8%
Commission and other acquisition expense ratio(9)   22.7%    31.4%        28.7%
General and administrative expense ratio(10)   4.5%    0.2%        2.7%
Combined ratio(12)   103.6%    95.2%        99.2%
                

 

Maiden Holdings, Ltd.
Supplemental Financial Data - Segment Information
(in thousands (000's))
(Unaudited)
                 
                 
For the Six Months Ended June 30, 2016 Diversified
Reinsurance
  AmTrust Reinsurance  Other  Total 
Gross premiums written $ 480,638   $   1,071,798       -    $   1,552,436  
Net premiums written $ 447,430   $ 995,828       -    $ 1,443,258  
Net premiums earned $ 363,011   $ 890,562       -    $ 1,253,573  
Other insurance revenue     6,351       -        -      6,351  
Net loss and loss adjustment expenses     (263,322)      (564,393)      (2,895)      (830,610) 
Commissions and other acquisition expenses     (100,027)      (280,768)      -        (380,795) 
General and administrative expenses     (17,679)      (1,549)      -        (19,228) 
Underwriting income (loss)  $   (11,666)  $   43,852   $   (2,895)  $   29,291  
                 
Reconciliation to net income                
Net investment income and realized gains on investment               74,236  
Interest and amortization expenses                 (14,458) 
Accelerated amortization of senior note issuance cost                 (2,345) 
Amortization of intangible assets                 (1,230) 
Foreign exchange and other gains                 5,787  
Other general and administrative expenses                 (13,558) 
Income tax expense                 (1,007) 
Net income             $   76,716  
                 
Net loss and loss adjustment expense ratio(8)   71.3%    63.4%        65.9% 
Commission and other acquisition expense ratio(9)   27.1%    31.5%        30.2% 
General and administrative expense ratio(10)   4.8%    0.2%        2.6% 
Combined ratio(12)   103.2%    95.1%        98.7% 
                 
                 
For the Six Months Ended June 30, 2015 Diversified
Reinsurance
  AmTrust Reinsurance  Other  Total 
Gross premiums written $   456,987   $   1,051,448   $   (1)  $   1,508,434  
Net premiums written $   438,983   $ 987,617   $   1   $   1,426,601  
Net premiums earned $ 377,487   $ 809,250   $ 2   $ 1,186,739  
Other insurance revenue     7,231       -        -      7,231  
Net loss and loss adjustment expenses     (275,378)      (513,236)      (3,719)      (792,333) 
Commissions and other acquisition expenses     (100,618)      (253,283)      (138)      (354,039) 
General and administrative expenses     (17,758)      (1,544)      -        (19,302) 
Underwriting income (loss)  $   (9,036)  $   41,187   $   (3,855)  $   28,296  
                 
Reconciliation to net income                
Net investment income and realized gains on investment                 64,528  
Interest and amortization expenses                 (14,530) 
Amortization of intangible assets                 (1,420) 
Foreign exchange and other gains                 2,635  
Other general and administrative expenses                 (13,196) 
Income tax expense                 (1,268) 
Net income             $   65,045  
                 
Net loss and loss adjustment expense ratio(8)   71.6%    63.4%        66.3% 
Commission and other acquisition expense ratio(9)   26.2%    31.3%        29.7% 
General and administrative expense ratio(10)   4.5%    0.2%        2.7% 
Combined ratio(12)   102.3%    94.9%        98.7% 
                 
                 
(8) Calculated by dividing net loss and loss adjustment expenses by the sum of net premiums earned and other insurance revenue.     
(9) Calculated by dividing commission and other acquisition expenses by the sum of net premiums earned and other insurance revenue.   
(10) Calculated by dividing general and administrative expenses by the sum of net premiums earned and other insurance revenue.     
(11) Calculated by adding together the commission and other acquisition expense ratio and general and administrative expense ratio.    
(12) Calculated by adding together the net loss and loss adjustment expense ratio and expense ratio.         

 

CONTACT:   Noah Fields, Senior Vice President, Investor Relations Maiden Holdings, Ltd. Phone: 441.298.4927 E-mail: nfields@maiden.bm

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