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Maiden Holdings, Ltd. Reports Fourth Quarter Net Income of $19.1 Million and Operating Earnings(1) of $17.2 Million

/ Source: GlobeNewswire

Shareholders' Equity of $750.2 Million; Up 10.9% for the Year

Year End Book Value of $10.40 per Share

Financial Highlights

  • Net income of $19.1 million for the quarter and $69.9 million for 2010, each up 14.4% from the same period last year       
  • Fourth quarter EPS of $ $0.27 and full year EPS of $0.98
  • Net operating earnings
  • Fourth quarter operating EPS
  • Income from operations
  • Net written premium of $330.1 million in the quarter, up $96.0 million from fourth quarter 2009
  • Net written premium of $1.2 billion for the full year, up 19.2% from 2009
  • Net earned premium of $312.5 million in the quarter increased 25.7% from fourth quarter of 2009
  • Net earned premium totaled $1.2 billion in 2010, up 27.2% from 2009
  • Net investment income of $17.7 million in the quarter, up 5.3% from fourth quarter 2009
  • Annualized return on equity of 10.1% and operating return on equity
  • Full year return on equity of 9.8% and operating return on equity
  • Combined ratio of 97.3% in the quarter and 96.9% for the full year
  • Total assets of $3.0 billion increased 13.1% from year-end 2009
  • Investable assets of $2.2 billion included total investments of $1.9 billion, which were up 12.8% from year-end 2009 total investments of $1.7 billion
  • Shareholders' equity of $750.2 million increased 10.9% from year-end 2009
  • Closed GMAC International Insurance Services, Ltd. transaction in November; integration on track

HAMILTON, Bermuda, March 1, 2011 (GLOBE NEWSWIRE) -- Maiden Holdings, Ltd. (Nasdaq:MHLD) today reported fourth quarter 2010 net income of $19.1 million, up 14.4% from $16.7 million in the fourth quarter of 2009. Earnings per diluted share of $0.27 increased 12.5% from $0.24 in the fourth quarter of 2009.

Operating earnings(1) for the quarter totaled $17.2 million, or $0.24 per diluted share, compared with $19.0 million, or $0.27 per diluted share in the fourth quarter of 2009.

2010 net income totaled $69.9 million, up 14.4% from 2009. Earnings per diluted share of $0.98 increased 12.6% from $0.87 in 2009. Operating earnings(1) in 2010 totaled $72.7 million, or $1.02 per diluted share, compared with $66.3 million, or $0.95 per diluted share in 2009.

"The Maiden team once again delivered solid results for our shareholders even in the face of the continued challenging underwriting and investment landscape," said Art Raschbaum, President and CEO of Maiden Holdings, Ltd. "During the year, we continued to benefit from the stability of our strong, non-catastrophe oriented client value proposition, disciplined underwriting philosophy, and growth tied to our long-term strategic relationships."

Raschbaum added, "Our November acquisition of the GMAC International Insurance Services platform provides us with a strong entry point to the international market and we are confident in our ability to leverage this unique platform to drive additional growth in 2011 and beyond. These factors, in addition to our continued commitment to maintaining a strong, efficient balance sheet and disciplined approach to investing, solidly position Maiden to continue to deliver long-term value for our shareholders."

Shareholders' equity of $750.2 million rose 10.9% from year end 2009 and book value per share increased 8.1% to $10.40 from $9.62 at year end 2009.

Fourth Quarter 2010 Results:

Net written premium totaled $330.1 million compared with $234.1 million in the fourth quarter of 2009. Net earned premium of $312.5 million increased 25.7% from $248.6 million for the same period last year.

Net investment income of $17.7 million grew 5.3% from $16.8 million in the fourth quarter of 2009.

Loss and loss adjustment expenses of $208.9 million rose $62.7 million from $146.1 million in the fourth quarter of 2009. Results reflected a loss ratio of 66.8% compared with 58.8% for the same period a year ago.

Commission and other acquisition expenses together with general and administrative expenses of $95.2 million increased $4.0 million from the year ago quarter and reflected a total expense ratio of 30.5% compared with 36.7%. General and administrative expenses for the quarter totaled $13.3 million compared with $9.4 million in the fourth quarter of 2009.

These results reflected a general and administrative expense ratio of 4.3% compared to 3.8% in the fourth quarter of 2009.

The combined ratio for the fourth quarter totaled 97.3% compared with 95.5% in the fourth quarter of 2009.

Income from operations(2) of $30.2 million increased $1.4 million, or 5.0%, from $28.8 million in the fourth quarter of 2009.

Total assets of $3.0 billion increased 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 $146.6 million from year end 2009. Total investments of $1.9 billion increased $213.0 million, or 12.8% from year end 2009. Shareholders' equity of $750.2 million rose 10.9% from $676.5 million at year end 2009.

During the fourth quarter of 2010, the Board of Directors declared a dividend of $0.07 per share.

2010 Results:

Net written premium of $1.2 billion increased 19.2% from $1.0 billion during 2009. Net earned premium of $1.2 billion grew $249.9 million, or 27.2%, from $919.9 million last year.

Net investment income of $71.7 million increased 13.8% from $63.0 million in 2009.

Loss and loss adjustment expenses of $755.1 million rose $146.5 million from $608.6 million in 2009. Results reflected a loss ratio of 64.6% compared with 66.2% a year ago.

Commission and other acquisition expenses together with general and administrative expenses of $378.9 million increased $105.3 million from last year and reflected a total expense ratio of 32.3% compared with 29.7%. General and administrative expenses for the period totaled $42.2 million compared with $32.1 million in 2009. These results reflected a general and administrative expense ratio of 3.5% which remained stable with 2009.

The combined ratio totaled 96.9% in 2010, compared with 95.9% in 2009.

Income from operations(2) of $114.0 million for the year increased $13.1 million, or 13.0%, from $101.0 million in 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

CEO Art Raschbaum and CFO John Marshaleck will review these results via teleconference and live audio webcast on Wednesday, March 2, 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), March 2, 2011 through midnight on March 9, 2011. 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: 41251935; or access http://www.maiden.bm/presentations_conferences.

About Maiden Holdings, Ltd.

Maiden Holdings, Ltd. is a Bermuda-based holding company formed in 2007. 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. Our operating subsidiaries are rated A- (excellent) by A.M. Best with a stable outlook. As of September 30, 2010, the Company had $2.8 billion in assets and shareholders' equity of $758 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. 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, challenges inherent in international operations, 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. 

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CONTACT: Maiden Holdings, Ltd. Ellen Taylor 856.359.2573 irelations@maiden.bm