updated 11/4/2010 7:16:06 AM ET 2010-11-04T11:16:06

Third Quarter 2010 Financial Highlights

  • Net income of $18.5 million up 23.6% from third quarter 2009; EPS of $0.26
  • Net operating earnings(1) of $18.1 million up 9.7% from $16.5 million in third quarter of 2009; Operating EPS(1) of $0.26
  • Income from operations(2) totaled $28.3 million up 10.7% from third quarter 2009
  • Net earned premium of $309.6 million increased 30.4% from third quarter of 2009
  • Net investment income of $17.5 million up 4.3% from third quarter 2009
  • Annualized return on equity of 9.9% and operating return on equity(1) of 9.7%
  • Combined ratio of 97.0% compared with 96.3% in the third quarter of 2009
  • Total assets of $2.8 billion and investable assets of $2.2 billion increased over 7.5% from year end 2009
  • Shareholders' equity of $758.4 million increased 12.1% from year-end 2009
  • GMAC International Insurance Services, Ltd. transaction expected to close by end of November

HAMILTON, Bermuda, Nov. 4, 2010 (GLOBE NEWSWIRE) -- Maiden Holdings, Ltd. (Nasdaq:MHLD) today reported third quarter 2010 net income of $18.5 million, up 23.6% from $15.0 million in the third quarter of 2009. Earnings per diluted share of $0.26 increased 23.8% from $0.21 in the third quarter of 2009. Operating earnings(1) for the quarter totaled $18.1 million, or $0.26 per diluted share, compared with $16.5 million, or $0.23 per diluted share in the third quarter of 2009.

For the first nine months of 2010, net income totaled $50.7 million, up 14.4% from the first nine months of 2009. Earnings per diluted share of $0.72 increased 14.3% from $0.63 in the first nine months of 2009. Operating earnings(1) for the first nine months of 2010 of $55.5 million, or $0.79 per diluted share, compared with $47.3 million, or $0.68 per diluted share in the first nine months of 2009.

"Our third quarter results reflect continued solid growth in earnings and book value despite an increasingly competitive underwriting environment," said Art Raschbaum, President and CEO of Maiden Holdings, Ltd. "Maiden continues to benefit from growth tied to our strategic relationships as we maintain our value-added long-term relationship focus and disciplined approach to underwriting. We also remain firmly committed to preserving our high-quality balance sheet even in the face of the challenging investment environment."

Raschbaum added, "We look forward to the additional diversification and benefits provided by the pending GMAC International Insurance Services transaction which should help drive continued growth in assets, revenue, and earnings. The combination of our disciplined approach and lower-volatility business model give us confidence in our ability to continue to deliver long-term value for our shareholders."

Shareholders' equity of $758.4 million grew 12.1% from year end 2009 and book value per share increased 9.4% to $10.52 from $9.62 at year end 2009.

The company expects the proposed GMAC International Insurance Services, Inc. transaction to close by the end of November.

Third Quarter 2010 Results:

Net written premium totaled $273.4 million compared with $221.4 million in the third quarter of 2009. Net earned premium of $309.6 million increased 30.4% from $237.4 million for the same period last year.

Net investment income of $17.5 million grew 4.3% from $16.8 million in the third quarter of 2009.

Loss and loss adjustment expenses of $200.6 million rose $35.5 million from $165.1 million in the third quarter of 2009. Results reflected a loss ratio of 64.8% compared with 69.6% for the same period a year ago.

Commission and other acquisition expenses together with general and administrative expenses of $99.8 million increased $36.4 million from the year ago quarter and reflected a total expense ratio of 32.2% compared with 26.7%. General and administrative expenses for the quarter totaled $10.8 million compared with $8.1 million in the third quarter of 2009.

These results reflected a general and administrative expense ratio of 3.5% compared to 3.4% in the third quarter of 2009.

The combined ratio for the third quarter totaled 97.0% compared with 96.3% in the third quarter of 2009.

Income from operations(2) of $28.3 million increased $2.7 million, or 10.7%, from $25.6 million in the third quarter of 2009.

Total assets of $2.8 billion increased 7.6% from $2.6 billion at year end 2009. Total investable assets of $2.2 billion, which include total investments, cash, restricted cash, cash equivalents and a loan to a related party, increased $156.7 million from year end 2009. Shareholders' equity of $758.4 million rose 12.1% from $676.5 million at year end 2009.

During the third quarter of 2010, the Board of Directors declared a dividend of $0.065 per share.

2010 Year-to-Date Results:

Net written premium of $897.8 million increased 12.7% from $796.3 million during the first nine months of 2009. Net earned premium of $857.3 million grew $186.0 million, or 27.7%, from $671.3 million for the same period last year.

Net investment income of $54.0 million increased 16.9% from $46.2 million in the first nine months of 2009.

Loss and loss adjustment expenses of $546.3 million rose $83.8 million from $462.5 million in the first nine months of 2009. Results reflected a loss ratio of 63.7% compared with 68.9% for the same period a year ago.

Commission and other acquisition expenses together with general and administrative expenses of $283.7 million increased $101.3 million from the first nine months of last year and reflected a total expense ratio of 33.1% compared with 27.2%. General and administrative expenses for the period totaled $28.9 million compared with $22.7 million. These results reflected a general and administrative expense ratio of 3.4% which remained in line with the first nine months of 2009.

The combined ratio totaled 96.8% compared with 96.1% in the first nine months of 2009.

Income from operations(2) of $83.8 million increased $11.6 million, or 16.1%, from $72.2 million in the first nine months of 2009.

(1) (2)Please see the Non-GAAP Financial Measures table at the end of this release for additional information on these non-GAAP financial measures and reconciliation of these measures to GAAP measures.

Conference Call

Maiden CEO Art Raschbaum and CFO John Marshaleck will review these results via teleconference and live audio webcast beginning at 10:00 a.m. AT (9:00 a.m. ET). To participate please access one of the following no later than 9:55 a.m. AT (8:55 a.m. ET):

1.877.734.5373 for U.S. callers

1. 973.200.3059 for callers outside the U.S.

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

A replay of the conference call will be available beginning at 1:00 p.m. AT (12:00 p.m. ET), November 4, 2010 through midnight on November 11 2010. To listen to the replay please dial toll free: 1.800.642.1687 (U.S. callers) or toll 1.706.645.9291 (callers outside the U.S.) and enter the Passcode: 19061229; or access http://www.maiden.bm/presentations_conferences.

About Maiden Holdings, Ltd.

Maiden Holdings, Ltd. is a Bermuda-based holding company formed in 2007. Through our subsidiaries which are each A- rated (excellent) by A.M. Best, we are 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, 2010, the company had $2.8 billion in assets and shareholders' equity of $725 million.

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 including statements relating to the pending GMAC International Insurance Services transaction. 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, 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, 2009 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. 

MHLD-G

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