IE 11 is not supported. For an optimal experience visit our site on another browser.

Maiden Holdings, Ltd. Reports First Quarter Net Income of $19.3 Million and Operating Earnings(1) of $19.8 Million

Financial Highlights
/ Source: GlobeNewswire

Financial Highlights

  • First quarter 2011 net income and operating income grew 42.6% and 22.4% compared to same period in 2010
  • Net income of $19.3 million or $0.27 per share for the quarter compared with $13.6 million or $0.19 per share in first quarter of 2010
  • Net operating earnings
  • Net written premium of $449.5 million in the first quarter up $138.2 million from $311.3 million in the first quarter 2010
  • Combined ratio of 97.0% compared to 97.1% in the first quarter 2010
  • Net investment income of $19.1 million up 8.9% from first quarter 2010
  • Annualized return on equity of 10.3% and operating return on equity
  • Minimal, if any, losses expected from first quarter 2011 global catastrophe events
  • Total assets of $3.1 billion increased 3.0% from year-end 2010

HAMILTON, Bermuda, May 4, 2011 (GLOBE NEWSWIRE) -- Maiden Holdings, Ltd. (Nasdaq:MHLD) today reported first quarter 2011 net income of $19.3 million, up 42.6% from $13.6 million in the first quarter of 2010. Earnings per diluted share of $0.27 increased 42.1% from $0.19 in the first quarter of 2010. Operating earnings(1) for the quarter totaled $19.8 million, or $0.27 per diluted share, compared with $16.2 million, or $0.23 per diluted share in the first quarter of 2010.

"At Maiden, we generated solid underwriting, net income, and operating performance while continuing to increase our book value," said Art Raschbaum, President and CEO of Maiden Holdings Ltd. "Importantly, the quarter reflects continuing success in implementing our business model of delivering stable results for our shareholders as we remain focused on serving the non catastrophe needs of regional and specialty insurers. As we communicated earlier this year, Maiden expects minimal, if any, losses from the significant global catastrophe events of the first quarter of 2011."

Raschbaum added, "Our first quarter reflects the completion of the first full year of our strategic quota share with ACAC and our first full quarter from our newly acquired international operations, both of which performed in line with our expectations. We believe we are well positioned to continue to deliver long-term value for our shareholders."

Shareholders' equity of $769.7 million and book value per share of $10.67 at March 31, 2011 both rose 2.6% from year end 2010.

First Quarter 2011 Results:

Net written premium totaled $449.5 million compared with $311.3 million in the first quarter of 2010. Net earned premium of $346.5 million increased 31.3% from $263.9 million for the same period last year.

Net investment income of $19.1 million grew 8.9% from $17.6 million in the first quarter of 2010.

Loss and loss adjustment expenses of $221.2 million rose $50.9 million from $170.3 million in the first quarter of 2010. Results reflected a loss ratio of 63.0% compared with 64.5% for the same period a year ago.

Commission and other acquisition expenses together with general and administrative expenses of $119.4 million increased $33.4 million from the year ago quarter and reflected a total expense ratio of 34.0% compared with 32.6% in 2010. General and administrative expenses for the quarter totaled $12.3 million compared with $8.6 million in the first quarter of 2010.

These results reflected a general and administrative expense ratio of 3.5% compared to 3.3% in the first quarter of 2010.

The combined ratio for the first quarter totaled 97.0% compared with 97.1% in the first quarter of 2010.

Income from operations(2) of $29.8 million increased 16.6%, from $25.6 million in the first quarter of 2010.

Total assets of $3.1 billion at March 31, 2011 increased from $3.0 billion at year end 2010. Total investable assets of $2.3 billion(3), were largely unchanged from year end 2010.

During the first quarter of 2011, the Board of Directors declared a dividend of $0.07 per share.

(1)(2)(3)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 Thursday, May 5, 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), May 5, 2011 through midnight on May 12, 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. 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 March 31, 2011, the Company had $3.1 billion in assets and shareholders' equity of $769.7 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, 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, 2010 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

CONTACT: Maiden Holdings, Ltd. John Marshaleck 441.298.4902 irelations@maiden.bm