MAIDEN HOLDINGS, LTD. (NASDAQ:MHLD) Files An 8-K Results of Operations and Financial Condition
Item 2.02
|
Results of Operations and Financial Condition.
|
On May 8, 2017, Maiden Holdings, Ltd. (the Company) issued a press
release announcing its results of operations for the fiscal quarter
ended March 31, 2017. A copy of the press release is furnished
herewith as Exhibit 99.1 and incorporated herein by reference.
release announcing its results of operations for the fiscal quarter
ended March 31, 2017. A copy of the press release is furnished
herewith as Exhibit 99.1 and incorporated herein by reference.
The information contained in this Item 2.02 and in the accompanying
exhibit shall not be deemed filed for purposes of Section 18 of the
Securities Exchange Act of 1934, as amended (the Exchange Act) or
otherwise subject to the liabilities of that section, or
incorporated by reference in any filing under the Exchange Act or
the Securities Act of 1933, as amended, except as shall be
expressly set forth by specific reference in such filing.
exhibit shall not be deemed filed for purposes of Section 18 of the
Securities Exchange Act of 1934, as amended (the Exchange Act) or
otherwise subject to the liabilities of that section, or
incorporated by reference in any filing under the Exchange Act or
the Securities Act of 1933, as amended, except as shall be
expressly set forth by specific reference in such filing.
|
Item 9.01
|
Financial Statements and Exhibits.
|
(d) Exhibit
|
Exhibit
|
|
|
|
No.
|
|
Description
|
|
|
|
|
|
99.1
|
|
Press Release of Maiden Holdings, Ltd., dated May 8,
2017 |
to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf
by the undersigned hereunto duly authorized.
registrant has duly caused this report to be signed on its behalf
by the undersigned hereunto duly authorized.
|
Date:
|
May 8, 2017
|
MAIDEN HOLDINGS, LTD.
|
|
|
|
|
|
|
|
|
|
By:
|
/s/ Lawrence F. Metz
|
|
|
|
|
Lawrence F. Metz
|
|
|
|
|
Executive Vice President, General Counsel and
Secretary
|
EXHIBIT INDEX
|
Exhibit
|
|
|
|
No.
|
|
Description
|
|
|
|
|
|
99.1
|
|
Press Release of Maiden Holdings, Ltd., dated May 8,
2017 |
Exhibit 99.1
PRESS RELEASE
Maiden Holdings, Ltd. Announces First Quarter 2017 Financial
Results
Results
Highlights for the quarter ended March 31, 2017
|
|
Net income attributable to Maiden common shareholders of
$20.5 million, or $0.23 per diluted common share compared with net income attributable to Maiden common shareholders of $27.2 million, or $0.35 per diluted common share in the first quarter of 2016; |
|
|
Non-GAAP operating earnings(1)>of
$22.6 million, or $0.26 per diluted common share compared with non-GAAP operating earnings of $28.3 million, or $0.37 per diluted common share in the first quarter of 2016; |
|
|
Annualized return on average common equity of 7.9% compared
to 11.9% in the first quarter of 2016; |
|
|
Annualized non-GAAP operating return on average common
equity(7)>of 8.7% compared to 12.3% in the first quarter of 2016; |
|
|
Gross premiums written increased 6.9% to $923.4 million
compared to the first quarter of 2016; |
|
|
Net premiums written increased 13.6% to $900.5 million
compared to the first quarter of 2016; |
|
|
Combined ratio(12)>of
100.9% compared to 98.9% in the first quarter of 2016; |
|
|
Net investment income of $42.2 million increased 16.1%
compared to $36.3 million in the first quarter of 2016; and |
|
|
Book value per common share(4)
of $12.19 increased 0.6% compared to year-end 2016. |
HAMILTON, Bermuda – Maiden Holdings, Ltd. (NASDAQ: MHLD) (Maiden or
the Company) today reported first quarter 2017 net income
attributable to Maiden common shareholders of $20.5 million or
$0.23 per diluted common share compared to net income attributable
to Maiden common shareholders of $27.2 million or $0.35 per diluted
common share in the first quarter of 2016. Non-GAAP operating
earnings(1)>were
$22.6 million, or $0.26 per diluted common share compared with
non-GAAP operating earnings of $28.3 million, or $0.37 per diluted
common share in the first quarter of 2016.
the Company) today reported first quarter 2017 net income
attributable to Maiden common shareholders of $20.5 million or
$0.23 per diluted common share compared to net income attributable
to Maiden common shareholders of $27.2 million or $0.35 per diluted
common share in the first quarter of 2016. Non-GAAP operating
earnings(1)>were
$22.6 million, or $0.26 per diluted common share compared with
non-GAAP operating earnings of $28.3 million, or $0.37 per diluted
common share in the first quarter of 2016.
Commenting on the Company’s results, Art Raschbaum, Chief
Executive Officer of Maiden, said: Notwithstanding a challenging
operating environment, Maidens results improved significantly from
the Companys fourth quarter 2016 underwriting loss. While the
aggregate combined ratio for the quarter was 100.9%, it reflects
the impact of more conservative initial expected loss ratios for
the AmTrust master quota share as well as higher than anticipated
losses in the quarter from select casualty lines. Gross revenues
increased by 6.9% across our two operating segments while
investment income also reflected strong year-on-year growth of
16.1%. We believe that we are well positioned to continue to
further strengthen returns for the balance of the year while
continuing to implement new business initiatives across the
Company.
Executive Officer of Maiden, said: Notwithstanding a challenging
operating environment, Maidens results improved significantly from
the Companys fourth quarter 2016 underwriting loss. While the
aggregate combined ratio for the quarter was 100.9%, it reflects
the impact of more conservative initial expected loss ratios for
the AmTrust master quota share as well as higher than anticipated
losses in the quarter from select casualty lines. Gross revenues
increased by 6.9% across our two operating segments while
investment income also reflected strong year-on-year growth of
16.1%. We believe that we are well positioned to continue to
further strengthen returns for the balance of the year while
continuing to implement new business initiatives across the
Company.
Results for the quarter ended March 31, 2017
Maiden reported first quarter 2017 net income attributable to
Maiden common shareholders of $20.5 million or $0.23 per diluted
common share compared to net income attributable to Maiden common
shareholders of $27.2 million or $0.35 per diluted common share in
the first quarter of 2016. The non-GAAP operating
earnings(1)>were
$22.6 million, or $0.26 per diluted common share compared with
non-GAAP operating earnings of $28.3 million, or $0.37 per diluted
common share in the first quarter of 2016.
Maiden common shareholders of $20.5 million or $0.23 per diluted
common share compared to net income attributable to Maiden common
shareholders of $27.2 million or $0.35 per diluted common share in
the first quarter of 2016. The non-GAAP operating
earnings(1)>were
$22.6 million, or $0.26 per diluted common share compared with
non-GAAP operating earnings of $28.3 million, or $0.37 per diluted
common share in the first quarter of 2016.
In the first quarter of 2017, gross premiums written increased 6.9%
to $923.4 million from $864.1 million in the first quarter of 2016.
Gross premiums written in the Diversified Reinsurance segment
totaled $332.0 million, an increase of 5.1% versus the first
quarter of 2016 due to a combination of new business and growth
from existing client relationships. In the AmTrust Reinsurance
segment, gross premiums written were $591.4 million, an increase of
7.9% compared to $548.3 million in the first quarter of 2016.
to $923.4 million from $864.1 million in the first quarter of 2016.
Gross premiums written in the Diversified Reinsurance segment
totaled $332.0 million, an increase of 5.1% versus the first
quarter of 2016 due to a combination of new business and growth
from existing client relationships. In the AmTrust Reinsurance
segment, gross premiums written were $591.4 million, an increase of
7.9% compared to $548.3 million in the first quarter of 2016.
Net premiums written totaled $900.5 million in the first quarter of
2017, an increase of 13.6% compared to the first quarter of 2016.
Net premiums written increased in the first quarter due to premium
growth in both operating segments, as well as a lower proportion of
premiums ceded compared to the prior year period.
2017, an increase of 13.6% compared to the first quarter of 2016.
Net premiums written increased in the first quarter due to premium
growth in both operating segments, as well as a lower proportion of
premiums ceded compared to the prior year period.
Net premiums earned were $709.5 million, an increase of 15.2%
compared to the first quarter of 2016. In the Diversified
Reinsurance segment, net premiums earned increased 17.2% to $201.8
million compared to the first quarter of 2016. The AmTrust
Reinsurance segment net premiums earned were $507.6 million, up
14.4% compared to the first quarter of 2016. Maidens year-over-year
increase in net premiums earned was due to a lower utilization of
retrocessional capacity.
compared to the first quarter of 2016. In the Diversified
Reinsurance segment, net premiums earned increased 17.2% to $201.8
million compared to the first quarter of 2016. The AmTrust
Reinsurance segment net premiums earned were $507.6 million, up
14.4% compared to the first quarter of 2016. Maidens year-over-year
increase in net premiums earned was due to a lower utilization of
retrocessional capacity.
Net loss and loss adjustment expenses of $480.6 million were up
19.1% compared to the first quarter of 2016. The loss
ratio(8)>of
67.4% was higher than the 65.0% reported in the first quarter of
2016.
19.1% compared to the first quarter of 2016. The loss
ratio(8)>of
67.4% was higher than the 65.0% reported in the first quarter of
2016.
Commission and other acquisition expenses, increased 13.8% to
$222.0 million in the first quarter of 2017, compared to the first
quarter of 2016. The expense ratio(11)
decreased to 33.5% for the first quarter of 2017 compared with
33.9% in the same quarter last year. General and administrative
expenses for the first quarter of 2017 totaled $17.4 million, a
12.4% increase compared with $15.5 million in the first quarter of
2016. The general and administrative expense ratio(10)>was
2.4% in the first quarter of 2017, compared to 2.5% in the first
quarter of 2016.
$222.0 million in the first quarter of 2017, compared to the first
quarter of 2016. The expense ratio(11)
decreased to 33.5% for the first quarter of 2017 compared with
33.9% in the same quarter last year. General and administrative
expenses for the first quarter of 2017 totaled $17.4 million, a
12.4% increase compared with $15.5 million in the first quarter of
2016. The general and administrative expense ratio(10)>was
2.4% in the first quarter of 2017, compared to 2.5% in the first
quarter of 2016.
The combined ratio(12)>for
the first quarter of 2017 totaled 100.9% compared with 98.9% in the
first quarter of 2016.>>The Diversified Reinsurance segment
combined ratio was 99.9% in the first quarter of 2017 compared to
102.9% in the first quarter of 2016. The Diversified Reinsurance
results in the first quarter last year were impacted by adverse
development of U.S. commercial auto business, which was not a
significant factor in the first quarter of 2017. The AmTrust
Reinsurance segment combined ratio was 99.8% in the first quarter
of 2017 compared to 95.3% in the first quarter of 2016, partially
due to a higher initial loss ratio on the master quota share.
the first quarter of 2017 totaled 100.9% compared with 98.9% in the
first quarter of 2016.>>The Diversified Reinsurance segment
combined ratio was 99.9% in the first quarter of 2017 compared to
102.9% in the first quarter of 2016. The Diversified Reinsurance
results in the first quarter last year were impacted by adverse
development of U.S. commercial auto business, which was not a
significant factor in the first quarter of 2017. The AmTrust
Reinsurance segment combined ratio was 99.8% in the first quarter
of 2017 compared to 95.3% in the first quarter of 2016, partially
due to a higher initial loss ratio on the master quota share.
Net investment income of $42.2 million in the first quarter of 2017
increased 16.1% compared to the first quarter of 2016. As of March
31, 2017, the average yield on the fixed income portfolio
(excluding cash) is 3.29% with an average duration of 5.06 years.
Cash and cash equivalents were $193.2 million at March 31, 2017 or
$43.7 million higher than at year-end 2016.
increased 16.1% compared to the first quarter of 2016. As of March
31, 2017, the average yield on the fixed income portfolio
(excluding cash) is 3.29% with an average duration of 5.06 years.
Cash and cash equivalents were $193.2 million at March 31, 2017 or
$43.7 million higher than at year-end 2016.
Total assets increased 4.9% to $6.6 billion at March 31, 2017
compared to $6.3 billion at year-end 2016. Shareholders’ equity
was $1.4 billion, up 0.7% compared to December 31, 2016. Book value
per common share(4)>was
$12.19 at March 31, 2017 or 0.6% higher than at December 31, 2016.
compared to $6.3 billion at year-end 2016. Shareholders’ equity
was $1.4 billion, up 0.7% compared to December 31, 2016. Book value
per common share(4)>was
$12.19 at March 31, 2017 or 0.6% higher than at December 31, 2016.
During the first quarter of 2017, the Board of Directors declared
dividends of $0.15 per common share, $0.515625 per Series A
preference share and $0.445313 per Series C preference share.
dividends of $0.15 per common share, $0.515625 per Series A
preference share and $0.445313 per Series C preference share.
(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.
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 non-GAAP operating
metrics. Please see the additional information on these measures
under Non-GAAP Financial Measure tables.
ratio, expense ratio and combined ratio are non-GAAP operating
metrics. Please see the additional information on these measures
under Non-GAAP Financial Measure tables.
Conference Call
Maidens Chief Executive Officer, Art Raschbaum and Chief Financial
Officer, Karen Schmitt will review these results tomorrow via
teleconference and live audio webcast beginning at 8:30 a.m. ET.
Officer, Karen Schmitt will review these results tomorrow 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:
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: 11534370
Webcast: http://www.maiden.bm/news_events
A replay of the conference call will be available beginning at
11:30 a.m. ET on May 9, 2017 through 11:30 a.m. ET on May 16,
2017. 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: 11534370; or access
http://www.maiden.bm/news_events
11:30 a.m. ET on May 9, 2017 through 11:30 a.m. ET on May 16,
2017. 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: 11534370; 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 March
31, 2017, Maiden had $6.6 billion in assets and shareholders’
equity of $1.4 billion.
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 March
31, 2017, Maiden had $6.6 billion in assets and shareholders’
equity of $1.4 billion.
The Maiden Holdings, Ltd. logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=5006
http://www.globenewswire.com/newsroom/prs/?pkgid=5006
Forward Looking Statements
This release contains “forward-looking statements” which are made
About MAIDEN HOLDINGS, LTD. (NASDAQ:MHLD)
Maiden Holdings, Ltd. (Maiden) is a holding company. The Company is focused on serving the needs of regional and specialty insurers in the United States, Europe and select other global markets by providing reinsurance solutions designed to support their capital needs. Maiden operates through two segments: Diversified Reinsurance and AmTrust Reinsurance. It specializes in reinsurance solutions that optimize financing and risk management by providing coverage within the predictable and actuarially credible lower layers of coverage and/or reinsuring risks that are believed to be lower hazard, more predictable and generally not susceptible to catastrophe claims. The Company provides reinsurance through its wholly owned subsidiaries, Maiden Reinsurance Ltd. (Maiden Bermuda) and Maiden Reinsurance North America, Inc. (Maiden US). It provides insurance sales and distribution services through Maiden Global Holdings, Ltd. (Maiden Global) and its subsidiaries. MAIDEN HOLDINGS, LTD. (NASDAQ:MHLD) Recent Trading Information
MAIDEN HOLDINGS, LTD. (NASDAQ:MHLD) closed its last trading session down -0.20 at 11.80 with 679,583 shares trading hands.