Highlights for the quarter
ended March 31, 2017
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.
Commenting on the Company's results, Art
Raschbaum, Chief Executive Officer of Maiden, said:
“Notwithstanding a challenging operating environment, Maiden’s
results improved significantly from the Company’s 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,
2017Maiden 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.
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.
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.
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. Maiden’s 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.
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.
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.
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.
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. 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.
(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
non-GAAP operating metrics. Please see the additional
information on these measures under Non-GAAP Financial Measure
tables.
Conference Call
Maiden’s 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.
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: 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
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.
The Maiden Holdings, Ltd. logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=5006
Forward Looking Statements
This release contains "forward-looking
statements" which are made pursuant to the safe harbor provisions
of the Private Securities Litigation Reform Act of 1995. The
forward-looking statements are based on the Company's current
expectations and beliefs concerning future developments and their
potential effects on the Company. There can be no assurance that
actual developments will be those anticipated by the Company.
Actual results may differ materially from those projected as a
result of significant risks and uncertainties, including
non-receipt of the expected payments, changes in interest rates,
effect of the performance of financial markets on investment income
and fair values of investments, developments of claims and the
effect on loss reserves, accuracy in projecting loss reserves, the
impact of competition and pricing environments, changes in the
demand for the Company's products, the effect of general economic
conditions and unusual frequency of storm activity, adverse state
and federal legislation, regulations and regulatory investigations
into industry practices, developments relating to existing
agreements, heightened competition, changes in pricing
environments, and changes in asset valuations. Additional
information about these risks and uncertainties, as well as others
that may cause actual results to differ materially from those
projected is contained in Item 1A. Risk Factors in the Company's
Annual Report on Form 10-K for the year ended December 31, 2016 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. |
Consolidated Balance Sheets |
(in thousands (000's), except per share
data) |
|
|
|
|
|
|
|
|
|
March 31, 2017(Unaudited) |
|
|
December 31, 2016(Audited) |
Assets |
|
|
|
|
|
|
Fixed
maturities, available-for-sale, at fair value (Amortized cost 2017:
$3,993,941; 2016: $4,005,642) |
|
$ |
3,967,907 |
|
$ |
3,971,666 |
Fixed
maturities, held-to-maturity, at amortized cost (Fair value 2017:
$767,657; 2016: $766,135) |
|
|
750,554 |
|
|
752,212 |
Other
investments, at fair value (Cost 2017: $10,074; 2016: $10,057) |
|
|
13,534 |
|
|
13,060 |
Total
investments |
|
|
4,731,995 |
|
|
4,736,938 |
Cash and cash
equivalents |
|
|
83,537 |
|
|
45,747 |
Restricted cash and
cash equivalents |
|
|
109,697 |
|
|
103,788 |
Accrued investment
income |
|
|
36,179 |
|
|
36,517 |
Reinsurance balances
receivable, net |
|
|
615,556 |
|
|
410,166 |
Reinsurance recoverable
on unpaid losses |
|
|
108,777 |
|
|
99,936 |
Loan to related
party |
|
|
167,975 |
|
|
167,975 |
Deferred commission and
other acquisition expenses, net |
|
|
472,459 |
|
|
424,605 |
Goodwill and intangible
assets, net |
|
|
77,183 |
|
|
77,715 |
Other assets |
|
|
153,601 |
|
|
148,912 |
Total Assets |
|
$ |
6,556,959 |
|
$ |
6,252,299 |
Liabilities
and Equity |
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
Reserve for loss and
loss adjustment expenses |
|
$ |
2,991,604 |
|
$ |
2,896,496 |
Unearned premiums |
|
|
1,670,884 |
|
|
1,475,506 |
Accrued expenses and
other liabilities |
|
|
172,886 |
|
|
167,736 |
Senior notes |
|
|
|
|
|
|
Principal
amount |
|
|
362,500 |
|
|
362,500 |
Less
unamortized debt issuance costs |
|
|
11,012 |
|
|
11,091 |
Senior notes, net |
|
|
351,488 |
|
|
351,409 |
Total Liabilities |
|
|
5,186,862 |
|
|
4,891,147 |
|
|
|
|
|
|
|
Equity |
|
|
|
|
|
|
Preference Shares |
|
|
315,000 |
|
|
315,000 |
Common shares |
|
|
876 |
|
|
873 |
Additional paid-in
capital |
|
|
750,694 |
|
|
749,256 |
Accumulated other
comprehensive income |
|
|
15,591 |
|
|
14,997 |
Retained earnings |
|
|
293,164 |
|
|
285,662 |
Treasury shares, at
cost |
|
|
(5,566) |
|
|
(4,991) |
Total Maiden
Shareholders’ Equity |
|
|
1,369,759 |
|
|
1,360,797 |
Noncontrolling
interest in subsidiaries |
|
|
338 |
|
|
355 |
Total Equity |
|
|
1,370,097 |
|
|
1,361,152 |
Total Liabilities and
Equity |
|
$ |
6,556,959 |
|
$ |
6,252,299 |
|
|
|
|
|
|
|
Book value per
common share(4) |
|
$ |
12.19 |
|
$ |
12.12 |
|
|
|
|
|
|
|
Common shares
outstanding |
|
|
86,553,324 |
|
|
86,271,109 |
|
|
|
|
|
|
|
Maiden Holdings, Ltd. |
Consolidated Statements of Income |
(in thousands (000's), except per share
data) |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months EndedMarch
31, |
|
2017 |
|
2016 |
Revenues: |
|
|
|
Gross premiums
written |
$ |
923,427 |
|
$ |
864,114 |
|
|
|
|
|
|
Net premiums
written |
$ |
900,548 |
|
$ |
792,831 |
Change in unearned
premiums |
|
(191,064) |
|
|
(176,822) |
Net premiums earned |
|
709,484 |
|
|
616,009 |
Other insurance
revenue |
|
3,781 |
|
|
4,826 |
Net investment
income |
|
42,157 |
|
|
36,302 |
Net realized gains on
investment |
|
885 |
|
|
2,277 |
Total
other-than-temporary impairment losses |
|
- |
|
|
- |
Portion of loss
recognized in other comprehensive income (loss) |
|
- |
|
|
- |
Net impairment losses
recognized in earnings |
|
- |
|
|
- |
Total revenues |
|
756,307 |
|
|
659,414 |
Expenses: |
|
|
|
|
|
Net loss and loss
adjustment expenses ("loss and LAE") |
|
480,569 |
|
|
403,621 |
Commission and other
acquisition expenses |
|
222,029 |
|
|
195,068 |
General and
administrative expenses |
|
17,414 |
|
|
15,496 |
Total expenses |
|
720,012 |
|
|
614,185 |
|
|
|
|
|
|
Non-GAAP income
from operations(2) |
|
36,295 |
|
|
45,229 |
|
|
|
|
|
|
Other
expenses |
|
|
|
|
|
Interest and
amortization expenses |
|
(6,856) |
|
|
(7,265) |
Amortization of
intangible assets |
|
(533) |
|
|
(615) |
Foreign exchange
(losses) gains |
|
(1,921) |
|
|
267 |
Total other expenses |
|
(9,310) |
|
|
(7,613) |
|
|
|
|
|
|
Income before
income taxes |
|
26,985 |
|
|
37,616 |
Less: income tax
expense |
|
484 |
|
|
787 |
|
|
|
|
|
|
Net
income |
|
26,501 |
|
|
36,829 |
Add: loss attributable
to noncontrolling interest |
|
22 |
|
|
64 |
Net income
attributable to Maiden |
|
26,523 |
|
|
36,893 |
Dividends on preference
shares(6) |
|
(6,033) |
|
|
(9,677) |
Net income
attributable to Maiden common shareholders |
$ |
20,490 |
|
$ |
27,216 |
|
|
|
|
|
|
Basic earnings
per common share attributable to Maiden shareholders |
$ |
0.24 |
|
$ |
0.37 |
Diluted
earnings per common share
attributable to Maiden shareholders |
$ |
0.23 |
|
$ |
0.35 |
Dividends
declared per common share |
$ |
0.15 |
|
$ |
0.14 |
Annualized
return on average common equity |
|
7.9% |
|
|
11.9% |
|
|
|
|
|
|
Weighted
average number of common shares - basic |
|
86,350,850 |
|
|
73,871,277 |
Adjusted
weighted average number of common shares and assumed conversions -
diluted |
|
87,436,604 |
|
|
85,799,377 |
|
|
|
|
|
|
Maiden Holdings, Ltd. |
Supplemental Financial Data - Segment
Information |
(in thousands (000's)) |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended March 31, 2017 |
|
DiversifiedReinsurance |
|
|
AmTrustReinsurance |
|
|
Other |
|
|
Total |
Gross
premiums written |
|
$ |
332,045 |
|
|
$ |
591,382 |
|
|
$ |
- |
|
|
$ |
923,427 |
Net premiums
written |
|
$ |
327,496 |
|
|
$ |
573,052 |
|
|
$ |
- |
|
|
$ |
900,548 |
Net premiums
earned |
|
$ |
201,842 |
|
|
$ |
507,642 |
|
|
$ |
- |
|
|
$ |
709,484 |
Other insurance
revenue |
|
|
3,781 |
|
|
|
- |
|
|
|
- |
|
|
|
3,781 |
Net loss and LAE |
|
|
(138,649) |
|
|
|
(341,631) |
|
|
|
(289) |
|
|
|
(480,569) |
Commissions and other
acquisition expenses |
|
|
(57,945) |
|
|
|
(164,084) |
|
|
|
- |
|
|
|
(222,029) |
General and
administrative expenses |
|
|
(8,730) |
|
|
|
(805) |
|
|
|
- |
|
|
|
(9,535) |
Underwriting
income (loss) |
|
$ |
299 |
|
|
$ |
1,122 |
|
|
$ |
(289) |
|
|
$ |
1,132 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation
to net income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income
and realized gains on investment |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
43,042 |
Interest and
amortization expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(6,856) |
Amortization of
intangible assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(533) |
Foreign exchange
losses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1,921) |
Other general and
administrative expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(7,879) |
Income tax expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(484) |
Net
income |
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
26,501 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss and
LAE(8) |
|
|
67.5% |
|
|
|
67.3% |
|
|
|
|
|
|
|
67.4% |
Commission and other
acquisition expense ratio(9) |
|
|
28.2% |
|
|
|
32.3% |
|
|
|
|
|
|
|
31.1% |
General and
administrative expense ratio(10) |
|
|
4.2% |
|
|
|
0.2% |
|
|
|
|
|
|
|
2.4% |
Expense ratio(11) |
|
|
32.4% |
|
|
|
32.5% |
|
|
|
|
|
|
|
33.5% |
Combined
ratio(12) |
|
|
99.9% |
|
|
|
99.8% |
|
|
|
|
|
|
|
100.9% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended March 31, 2016 |
|
DiversifiedReinsurance |
|
|
AmTrustReinsurance |
|
|
Other |
|
|
Total |
Gross
premiums written |
|
$ |
315,804 |
|
|
$ |
548,310 |
|
|
$ |
- |
|
|
$ |
864,114 |
Net premiums
written |
|
$ |
286,136 |
|
|
$ |
506,695 |
|
|
$ |
- |
|
|
$ |
792,831 |
Net premiums
earned |
|
$ |
172,256 |
|
|
$ |
443,753 |
|
|
$ |
- |
|
|
$ |
616,009 |
Other insurance
revenue |
|
|
4,826 |
|
|
|
- |
|
|
|
- |
|
|
|
4,826 |
Net loss and LAE |
|
|
(119,076) |
|
|
|
(281,774) |
|
|
|
(2,771) |
|
|
|
(403,621) |
Commissions and other
acquisition expenses |
|
|
(54,531) |
|
|
|
(140,538) |
|
|
|
1 |
|
|
|
(195,068) |
General and
administrative expenses |
|
|
(8,600) |
|
|
|
(586) |
|
|
|
- |
|
|
|
(9,186) |
Underwriting
(loss) income |
|
$ |
(5,125) |
|
|
$ |
20,855 |
|
|
$ |
(2,770) |
|
|
$ |
12,960 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation
to net income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income
and realized gains on investment |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
38,579 |
Interest and
amortization expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(7,265) |
Amortization of
intangible assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(615) |
Foreign exchange
gains |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
267 |
Other general and
administrative expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(6,310) |
Income tax expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(787) |
Net
income |
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
36,829 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss and
LAE(8) |
|
|
67.2% |
|
|
|
63.5% |
|
|
|
|
|
|
|
65.0% |
Commission and other
acquisition expense ratio(9) |
|
|
30.8% |
|
|
|
31.7% |
|
|
|
|
|
|
|
31.4% |
General and
administrative expense ratio(10) |
|
|
4.9% |
|
|
|
0.1% |
|
|
|
|
|
|
|
2.5% |
Expense ratio(11) |
|
|
35.7% |
|
|
|
31.8% |
|
|
|
|
|
|
|
33.9% |
Combined
ratio(12) |
|
|
102.9% |
|
|
|
95.3% |
|
|
|
|
|
|
|
98.9% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Maiden Holdings, Ltd. |
Non - GAAP Financial Measure |
(in thousands (000's), except per share
data) |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months EndedMarch
31, |
|
|
2017 |
|
2016 |
|
|
|
|
|
|
Non-GAAP operating earnings attributable to Maiden common
shareholders(1) |
$ |
22,638 |
|
$ |
28,347 |
|
Non-GAAP basic operating earnings per common share
attributable to Maiden shareholders |
$ |
0.26 |
|
$ |
0.38 |
|
Non-GAAP diluted operating earnings per common share
attributable to Maiden shareholders |
$ |
0.26 |
|
$ |
0.37 |
|
Annualized non-GAAP operating return on average common
equity(7) |
|
8.7% |
|
|
12.3% |
|
|
|
|
|
|
|
|
Reconciliation of net income attributable to Maiden common
shareholders to non-GAAP operating earnings attributable to Maiden
common shareholders: |
|
|
|
|
|
|
Net income attributable
to Maiden common shareholders |
$ |
20,490 |
|
$ |
27,216 |
|
Add (subtract) |
|
|
|
|
|
|
Net
realized gains on investment |
|
(885) |
|
|
(2,277) |
|
Foreign
exchange losses (gains) |
|
1,921 |
|
|
(267) |
|
Amortization of intangible assets |
|
533 |
|
|
615 |
|
Divested
excess and surplus "E&S" business and NGHC run-off |
|
289 |
|
|
2,770 |
|
Non-cash
deferred tax expense |
|
290 |
|
|
290 |
|
Non-GAAP
operating earnings attributable to Maiden common
shareholders(1) |
$ |
22,638 |
|
$ |
28,347 |
|
|
|
|
|
|
|
|
Reconciliation of diluted earnings per common share
attributable to Maiden shareholders to non-GAAP diluted operating
earnings per common share attributable to Maiden
shareholders: |
|
|
|
|
|
|
Diluted earnings per
common share attributable to Maiden shareholders |
$ |
0.23 |
|
$ |
0.35 |
|
Add (subtract) |
|
|
|
|
|
|
Net
realized gains on investment |
|
(0.01) |
|
|
(0.03) |
|
Foreign
exchange losses |
|
0.02 |
|
|
- |
|
Amortization of intangible assets |
|
0.01 |
|
|
0.01 |
|
Divested
excess and surplus "E&S" business and NGHC run-off |
|
- |
|
|
0.03 |
|
Non-cash
deferred tax expense |
|
0.01 |
|
|
0.01 |
|
Non-GAAP diluted operating earnings per common share
attributable to Maiden shareholders |
$ |
0.26 |
|
$ |
0.37 |
|
|
|
|
|
|
|
|
Reconciliation of net income attributable to Maiden to
non-GAAP income from operations: |
|
|
|
|
|
|
Net income attributable
to Maiden |
$ |
26,523 |
|
$ |
36,893 |
|
Add (subtract) |
|
|
|
|
|
|
Foreign
exchange losses (gains) |
|
1,921 |
|
|
(267) |
|
Amortization of intangible assets |
|
533 |
|
|
615 |
|
Interest
and amortization expenses |
|
6,856 |
|
|
7,265 |
|
Income
tax expense |
|
484 |
|
|
787 |
|
Loss
attributable to noncontrolling interest |
|
(22) |
|
|
(64) |
|
Non-GAAP income
from operations(2) |
$ |
36,295 |
|
$ |
45,229 |
|
|
|
|
|
|
|
|
Maiden Holdings, Ltd. |
Non - GAAP Financial Measure |
(in thousands (000's), except per share
data) |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31, 2017 |
|
December 31, 2016 |
Investable assets: |
|
|
|
|
|
Total
investments |
$ |
4,731,995 |
|
$ |
4,736,938 |
Cash and
cash equivalents |
|
83,537 |
|
|
45,747 |
Restricted
cash and cash equivalents |
|
109,697 |
|
|
103,788 |
Loan to
related party |
|
167,975 |
|
|
167,975 |
Total
investable assets(3) |
$ |
5,093,204 |
|
$ |
5,054,448 |
|
|
|
|
|
|
|
|
|
March 31, 2017 |
|
December 31, 2016 |
Capital: |
|
|
|
|
|
Preference
shares |
$ |
315,000 |
|
$ |
315,000 |
Common
shareholders' equity |
|
1,054,759 |
|
|
1,045,797 |
Total Maiden shareholders' equity |
|
1,369,759 |
|
|
1,360,797 |
2016 Senior
Notes |
|
110,000 |
|
|
110,000 |
2013 Senior
Notes |
|
152,500 |
|
|
152,500 |
2012 Senior
Notes |
|
100,000 |
|
|
100,000 |
Total capital resources(5) |
$ |
1,732,259 |
|
$ |
1,723,297 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Non-GAAP 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 and non-cash deferred tax expense and
should not be considered as an alternative to net income. The
Company's management believes that non-GAAP operating earnings is a
useful indicator of trends in the Company's underlying operations.
The Company's measure of non-GAAP operating earnings may not be
comparable to similarly titled measures used by other
companies. |
|
|
|
|
|
|
|
(2) Non-GAAP income from operations is a non-GAAP
financial measure defined by the Company as net income attributable
to Maiden excluding foreign exchange and other gains and losses,
amortization of intangible assets, interest and amortization
expenses, income tax expense and income or loss attributable to
noncontrolling interest and should not be considered as an
alternative to net income. The Company’s management believes
that non-GAAP 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 non-GAAP 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
Maiden 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
paid to Preference shares - Series A for the three months ended
March 31, 2017 and 2016 and $2,939 and $3,593 paid to Preference
shares - Series C for the three months ended March 31, 2017 and
2016, respectively. It also includes $2,990 paid to Preference
Shares - Series B during the three months ended March 31, 2016. On
September 15, 2016, each of then outstanding Preference share
- Series B were automatically converted into 12,069,090 of the
Company's common shares at a conversion rate of 3.6573 per
preference share. |
|
|
|
|
|
|
|
(7) 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 earnings
attributable to Maiden common shareholders divided by average
Maiden common shareholders' equity. |
|
|
|
|
|
|
|
(8) Calculated by dividing net loss and LAE 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 LAE
ratio and the 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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