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Maiden Holdings, Ltd. Announces Second Quarter 2016 Net Income Attributable to Common Shareholders of $30.9 Million or $0.39 Per Diluted Common Share and Operating Earnings(1) of $28.4 Million or $0.37 Per Diluted Common Share

/EIN News/ -- Highlights for the quarter ended June 30, 2016

  • Net income attributable to Maiden common shareholders of $30.9 million, or $0.39 per diluted common share compared with net income attributable to Maiden common shareholders of $20.5 million, or $0.27 per diluted common share in the second quarter of 2015;
  • Annualized return on common equity of 12.3% compared to 8.8% in the second quarter of 2015;
  • Net operating earnings(1) of $28.4 million, or $0.37 per diluted common share compared with net operating earnings of $28.4 million, or $0.37 per diluted common share in the second quarter of 2015;
  • Annualized operating return on common equity(7) of 11.3% compared to 12.2% in the second quarter of 2015;
  • Gross premiums written increased 2.1% to $688.3 million compared to the second quarter of 2015;
  • Net premiums written increased 3.3% to $650.4 million compared to the second quarter of 2015;    
  • Combined ratio(12) of 98.6% compared to 99.2% in the second quarter of 2015;
  • Net investment income was $35.3 million compared to $35.2 million in the second quarter of 2015;
  • Book value per common share(4) of $14.18 at June 30, 2016 increased 7.2% versus at March 31, 2016; and
  • In June, Maiden reduced its cost of capital with the issuance of $110.0 million 6.625% Notes and subsequent redemption of its $107.5 million Maiden Holdings North America, Ltd. 8.25% Notes.

Highlights for the six months ended June 30, 2016

  • Net income attributable to Maiden common shareholders of $58.1 million or $0.75 per diluted common share compared with $52.9 million, or $0.69 per diluted common share in the first six months of 2015;
  • Annualized return on common equity of 12.2% compared to 11.6% in the first half of 2015;
  • Net operating earnings(1) of $56.8 million, or $0.73 per diluted common share compared with net operating earnings of $55.0 million, or $0.71 per diluted common share in the first six months of 2015;
  • Annualized operating return on common equity(1) of 11.9% compared to 12.1% in the first half of 2015;
  • Gross premiums written increased 2.9% to $1.6 billion compared to the first half of 2015;
  • Net premiums written increased 1.2% to $1.4 billion in the first half of 2016 compared to the same period last year;
  • Combined ratio(12) of 98.7% was the same as the first six months of 2015; and
  • Net investment income was $71.6 million, an increase of 12.9% compared to the first half of 2015.

HAMILTON, Bermuda, Aug. 04, 2016 (GLOBE NEWSWIRE) -- Maiden Holdings, Ltd. (NASDAQ:MHLD) (“Maiden” or “the Company”) today reported second quarter 2016 net income attributable to Maiden common shareholders of $30.9 million or $0.39 per diluted common share compared to net income attributable to Maiden common shareholders of $20.5 million or $0.27 per diluted common share in the second quarter of 2015.   Net operating earnings(1) were $28.4 million, or $0.37 per diluted common share compared with net operating earnings of $28.4 million, or $0.37 per diluted common share in the second quarter of 2015.

Commenting on the Company's results, Art Raschbaum, Chief Executive Officer of Maiden, said: “The second quarter reflects a continued focus on disciplined growth, improving our cost of capital and delivering value to our regional and specialty insurer clients.  Notwithstanding a competitive operating environment and continued pressure on investment yields, our overall results reflect continued underwriting profitability and strong growth in book value while achieving an annualized return on common equity of 12.3% and an annualized operating return on common equity of 11.3%. This marks the 12th consecutive quarter of double digit operating returns.  While revenue growth has moderated for our AmTrust Reinsurance segment versus a strong prior year quarter impacted by acquisitions, the Diversified Reinsurance segment growth continues to benefit primarily from the expansion of existing client relationships in the U.S. and our developing European capital solutions business.  Going forward, earnings should benefit from investment of our large quarter-end cash balance and continued implementation of key strategic initiatives in the U.S. and Europe.”  

Results for the quarter ended June 30, 2016
Maiden reported second quarter 2016 net income attributable to common shareholders of $30.9 million or $0.39 per diluted common share compared with $20.5 million or $0.27 per diluted common share in the second quarter of 2015.  Net operating earnings(1) were $28.4 million, or $0.37 per diluted common share in the second quarter of 2016 compared with an equivalent result in the second quarter of 2015.

In the second quarter of 2016, gross premiums written increased 2.1% to $688.3 million from $674.2 million in the second quarter of 2015.  The Diversified Reinsurance segment’s gross premiums written totaled $164.8 million, an increase of 8.7% versus the second quarter of 2015. In the AmTrust Reinsurance segment, gross premiums written were $523.5 million compared to $522.5 million in the second quarter of 2015. This segment was impacted by the commutation announced in the fourth quarter of 2015 and slower growth following the completion of AmTrust’s integration of Tower Group.    

Net premiums written totaled $650.4 million in the second quarter of 2016, an increase of 3.3% compared to the second quarter of 2015. 

Net premiums earned of $637.6 million increased 4.6% compared to the second quarter of 2015.  In the Diversified Reinsurance segment, net premiums earned increased 3.2% to $190.8 million compared to the second quarter of 2015.  The AmTrust Reinsurance segment net earned premiums were up 5.2% to $446.8 million compared to the second quarter of 2015. 

Net loss and loss adjustment expenses of $427.0 million were up 2.9% compared to the second quarter of 2015.  

The loss ratio(8) of 66.8% was lower than the 67.8% reported in the second quarter of 2015.

Commission and other acquisition expenses, increased 5.7% to $185.7 million in the second quarter of 2016, compared to the same quarter a year ago.  The expense ratio(11) increased to 31.8% for the first quarter of 2016 compared with 31.4% in the same quarter last year, reflecting changes in business mix.  General and administrative expenses for the second quarter of 2016 totaled $17.3 million, a 6.1% increase compared with $16.3 million in the second quarter of 2015. The general and administrative expense ratio(10) was 2.7% in the second quarter of 2016, which is the same as the second quarter of 2015. 

The combined ratio(12) for the second quarter of 2016 totaled 98.6% compared with 99.2% in the second quarter of 2015.  The Diversified Reinsurance segment combined ratio was 103.4% in the second quarter of 2016, down from 103.6% in the second quarter of 2015, as commercial auto adverse development continued in the quarter. The AmTrust Reinsurance segment reported a combined ratio of 94.9% in the second quarter of 2016 compared to 95.2% in the second quarter of 2015.      

Net investment income of $35.3 million in the second quarter of 2016 increased slightly compared to the second quarter of 2015, which included $5.9 million of additional income from two called securities.  As of June 30, 2016, the average yield on the fixed income portfolio (excluding cash) is 3.29% with an average duration of 4.55 years.  Cash and cash equivalents were $505.8 million at June 30, 2016 or $173.3 million higher than at year-end 2015 as the Company received higher levels of cash from investment activities and held more cash during the quarter in light of the rate volatility during the second quarter of 2016.

Total assets increased 10.0% to $6.3 billion at June 30, 2016 compared to $5.7 billion at year-end 2015.   Shareholders' equity was $1.5 billion, up 13.5% compared to December 31, 2015.  Book value per common share was $14.18 at June 30, 2016 or 20.5% higher than at December 31, 2015. 
  
During the second quarter of 2016, the Board of Directors declared dividends of $0.14 per common share, $0.515625 per Series A preference share, $0.90625 per Series B preference share and $0.445313 per Series C preference share.

Results for the six months ended June 30, 2016
Net income attributable to Maiden common shareholders was $58.1 million or $0.75 per diluted common share in the first six months of 2016 compared to net income attributable to Maiden common shareholders of $52.9 million or $0.69 per diluted common share in the first half of 2015.  Net operating earnings(1) for the first six months of 2016 were $56.8 million, or $0.73 per diluted common share compared with $55.0 million, or $0.71 per diluted common share in the first half of 2015. 

In the first half of 2016, gross premiums written totaled $1.6 billion, an increase of 2.9% compared to the first six months of 2015.  In the first half of 2016, net premiums written totaled $1.4 billion, an increase of 1.2% compared to the first six months of 2015.  Net premiums written in the Diversified Reinsurance segment totaled $447.4 million, an increase of 1.9% versus the first half of 2015.  In the AmTrust Reinsurance segment, net premiums written increased by 0.8% to $995.8 million compared to the first half of 2015. 

Net premiums earned of $1.3 billion increased 5.6% compared to the first six months of 2015.  Net premiums earned decreased 3.8% in the Diversified Reinsurance segment to $363.0 million compared to the first half of 2015. The AmTrust Reinsurance segment net premiums earned were up 10.0% to $890.6 million compared to the first half 2015. 

Net loss and loss adjustment expenses of $ 830.6 million were up 4.8% compared to the first six months of 2015.  The loss ratio(8) of 65.9% was lower than the 66.3% in the first half of 2015.

Commission and other acquisition expenses, increased $26.8 million to $380.8 million in the first half of 2016 versus the comparable period a year ago, while the expense ratio(11) rose to 32.8% for the first six months of 2016 compared with 32.4% in the same period last year.  General and administrative expenses for the first half of 2016 totaled $32.8 million compared with $32.5 million in the first six months of 2015. The general and administrative expense ratio(10) decreased to 2.6% in the first half of 2016 versus 2.7% in the same period during 2015. 

The combined ratio(12) for the first half of 2016 was 98.7% and the same as the first six months of 2015.  The Diversified Reinsurance segment had a combined ratio of 103.2% in the first half of 2016 compared to 102.3% in the first six months of 2015.  The AmTrust Reinsurance segment reported a combined ratio of 95.1% in the first half of 2016 compared to 94.9% in the comparable period in 2015. 

Net investment income of $71.6 million in the first half of 2016 increased 12.9% compared to the first half of 2015. 

(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 operating metrics. Please see the additional information on these measures under Segment information tables.

Conference Call
Maiden’s Chief Executive Officer, Art Raschbaum and Chief Financial Officer, Karen Schmitt will review these results tomorrow morning 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: 52657857

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

A replay of the conference call will be available beginning at 11:30 a.m. ET on August 5, 2016 through midnight on August 12, 2016. 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: 52657857; 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 June 30, 2016, Maiden had $6.3 billion in assets and shareholders' equity of $1.5 billion.

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, 2015 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.    
Balance Sheet     
(in thousands (000's), except per share data)    
     
    June 30, 2016    December 31, 2015    
      (Unaudited)     (Audited)    
  Assets              
  Fixed maturities, available-for-sale, at fair value (Amortized cost 2016: $3,374,192; 2015: $3,562,864)  $   3,452,605     $   3,508,088      
  Fixed maturities, held-to-maturity, at amortized cost (Fair value 2016: $794,671; 2015: $598,975)     761,713         607,843      
  Other investments, at fair value (Cost 2016: $10,743; 2015: $10,816)     11,827         11,812      
  Total investments     4,226,145         4,127,743      
  Cash and cash equivalents     127,459         89,641      
  Restricted cash and cash equivalents     378,328         242,859      
  Accrued investment income     32,572         32,288      
  Reinsurance balances receivable, net     554,069         377,318      
  Reinsurance recoverable on unpaid losses     90,805         71,248      
  Loan to related party     167,975         167,975      
  Deferred commission and other acquisition expenses, net     455,522         397,548      
  Goodwill and intangible assets, net     80,728         81,920      
  Other assets     157,396         115,038      
  Total Assets $   6,270,999     $   5,703,578      
  Liabilities and  Equity              
  Liabilities              
  Reserve for loss and loss adjustment expenses $   2,636,631     $   2,510,101      
  Unearned premiums     1,583,477         1,354,572      
  Accrued expenses and other liabilities     168,756         139,873      
  Senior notes              
  Principal amount     362,500         360,000      
  Less unamortized debt issuance costs     11,252         10,067      
  Senior notes, net     351,248         349,933      
  Total Liabilities     4,740,112         4,354,479      
                 
  Equity              
  Preference Shares     480,000         480,000      
  Common shares     751         747      
  Additional paid-in capital     581,452         579,178      
  Accumulated other comprehensive income (loss)     118,926         (23,767 )    
  Retained earnings     353,576         316,184      
  Treasury shares, at cost     (4,991 )       (4,521 )    
  Total Maiden Shareholders’ Equity     1,529,714         1,347,821      
  Noncontrolling interest in subsidiaries     1,173         1,278      
  Total Equity     1,530,887         1,349,099      
  Total Liabilities and Equity $   6,270,999     $   5,703,578      
                 
                 
  Book value per common share(4) $   14.18     $   11.77      
                 
  Common shares outstanding   74,016,525       73,721,140      
                 

 

Maiden Holdings, Ltd.
Income Statement
(in thousands (000's), except per share data)
(Unaudited)
                       
  For the Three
Months Ended June
30, 2016
  For the Three
Months Ended June
30, 2015
  For the Six
Months Ended
June 30, 2016
  For the Six
Months Ended
June 30, 2015
                       
Revenues:                      
Gross premiums written $ 688,322
    $ 674,168
    $ 1,552,436
    $ 1,508,434  
                               
Net premiums written $   650,427     $   629,618     $   1,443,258     $   1,426,601  
Change in unearned premiums   (12,863 )     (20,198 )     (189,685 )     (239,862 )
Net premiums earned   637,564       609,420       1,253,573       1,186,739  
Other insurance revenue   1,525       2,252       6,351       7,231  
Net investment income   35,323       35,157       71,625       63,417  
Net realized gains on investment   334       242       2,611       1,111  
Total revenues   674,746       647,071       1,334,160       1,258,498  
Expenses:                      
Net loss and loss adjustment expenses   426,989       414,927       830,610       792,333  
Commission and other acquisition expenses   185,727       175,697       380,795       354,039  
General and administrative expenses   17,290       16,301       32,786       32,498  
Total expenses   630,006       606,925       1,244,191       1,178,870  
                       
Income from operations(2)     44,740         40,146         89,969         79,628  
                       
Other expenses                      
Interest and amortization expenses   (7,193 )     (7,266 )     (14,458 )     (14,530 )
Accelerated amortization of senior note issuance cost   (2,345 )     -       (2,345 )       -   
Amortization of intangible assets   (615 )     (710 )     (1,230 )     (1,420 )
Foreign exchange and other gains (losses)   5,520       (5,191 )     5,787       2,635  
Total other expenses   (4,633 )     (13,167 )     (12,246 )     (13,315 )
                       
Income before income taxes     40,107         26,979         77,723         66,313  
Income tax expense   220       468       1,007       1,268  
                       
Net income     39,887         26,511         76,716         65,045  
Add: loss attributable to noncontrolling interest   46       92       110       47  
Net income attributable to Maiden      39,933         26,603         76,826         65,092  
Dividends on preference shares(6)   (9,023 )     (6,084 )     (18,700 )     (12,168 )
Net income attributable to Maiden common shareholders $   30,910     $   20,519     $   58,126     $   52,924  
Net operating earnings attributable to Maiden common shareholders(1) $   28,431     $   28,399     $   56,778     $   55,033  
                       
Basic earnings per common share attributable to Maiden shareholders $   0.42     $   0.28     $   0.79     $   0.72  
Diluted earnings  per common share attributable to Maiden shareholders $   0.39     $   0.27     $   0.75     $   0.69  
Basic operating earnings per common share attributable to Maiden shareholders $   0.38     $   0.39     $   0.77     $   0.75  
Diluted operating earnings per common share attributable to Maiden shareholders $   0.37     $   0.37     $   0.73     $   0.71  
                       
Dividends declared per common share $   0.14     $   0.13     $   0.28     $   0.26  
                       
Weighted average number of common shares - basic   73,997,759       73,482,506       73,934,518       73,284,559  
Adjusted weighted average number of common shares and assumed conversions - diluted   85,926,626       85,566,706       85,894,062       85,414,344  
                       
Net loss and loss adjustment expense ratio(8)   66.8 %     67.8 %     65.9 %     66.3 %
Commission and other acquisition expense ratio(9)   29.1 %     28.7 %     30.2 %     29.7 %
General  and administrative expense ratio(10)   2.7 %     2.7 %     2.6 %     2.7 %
Expense ratio(11)   31.8 %     31.4 %     32.8 %     32.4 %
Combined ratio(12)   98.6 %     99.2 %     98.7 %     98.7 %
Annualized return on common equity   12.3 %     8.8 %     12.2 %     11.6 %
Annualized operating return on common equity(7)   11.3 %     12.2 %     11.9 %     12.1 %
                       

 

Maiden Holdings, Ltd.  
Non - GAAP Financial Measure  
(in thousands (000's), except per share data)  
(Unaudited)  
                           
                                           
    For the Three Months
Ended June 30, 2016

  For the Three Months
Ended June 30, 2015

  For the Six Months
Ended June 30, 2016

  For the Six Months
Ended June 30, 2015

 
                                         
Reconciliation of net income attributable to Maiden common shareholders to net operating earnings:                        
Net income attributable to Maiden common shareholders $     30,910     $     20,519     $     58,126     $     52,924    
Add (subtract)                        
  Net realized gains on investment        (334 )         (242 )         (2,611 )         (1,111 )  
  Foreign exchange and other (gains) losses       (5,520 )         5,191           (5,787 )         (2,635 )  
  Amortization of intangible assets       615           710           1,230           1,420    
  Divested excess and surplus "E&S" business and NGHC run-off       125           1,931           2,895           3,855    
  Accelerated amortization of senior note issuance cost       2,345           -            2,345           -     
  Non-cash deferred tax expense        290           290           580           580    
Net operating earnings attributable to Maiden common shareholders(1) $     28,431     $     28,399     $     56,778     $     55,033    
                           
Operating earnings per common share attributable to Maiden shareholders:                        
                           
Basic earnings per common share attributable to Maiden shareholders $     0.38     $     0.39     $     0.77     $     0.75    
Diluted earnings per common share attributable to Maiden shareholders $     0.37     $     0.37     $     0.73     $     0.71    
                           
Reconciliation of net income attributable to Maiden to income from operations:                        
Net income attributable to Maiden  $     39,933     $     26,603     $     76,826     $     65,092    
Add (subtract)                        
  Foreign exchange and other (gains) losses       (5,520 )         5,191           (5,787 )         (2,635 )  
  Amortization of intangible assets       615           710           1,230           1,420    
  Interest and amortization expenses       7,193           7,266           14,458           14,530    
  Accelerated amortization of senior note issuance cost       2,345           -            2,345           -     
  Income tax expense        220           468           1,007           1,268    
  Loss attributable to noncontrolling interest       (46 )         (92 )         (110 )         (47 )  
Income from operations(2) $     44,740     $     40,146     $     89,969     $     79,628    
                           
    June 30, 2016   December 31, 2015              
Investable assets:                        
Total investments $     4,226,145     $     4,127,743                
Cash and cash equivalents       127,459           89,641                
Restricted cash and cash equivalents       378,328           242,859                
Loan to related party       167,975           167,975                
Total investable assets(3) $     4,899,907     $     4,628,218                
                           
    June 30, 2016   December 31, 2015              
Capital:                        
Preference shares $     480,000      $      480,000                
Common shareholders' equity       1,049,714           867,821                
Total Maiden shareholders' equity       1,529,714           1,347,821                
2011 Senior Notes       -            107,500                
2012 Senior Notes       100,000           100,000                
2013 Senior Notes       152,500           152,500                
2016 Senior Notes       110,000           -                 
Total capital resources(5) $     1,892,214     $     1,707,821                
                           
(1) Net 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, accelerated amortization of senior note issuance cost and non-cash deferred tax expense and should not be considered as an alternative to net income. The Company's management believes that net operating earnings is a useful indicator of trends in the Company's underlying operations. The Company's measure of net operating earnings may not be comparable to similarly titled measures used by other companies.   
                           
(2) 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, accelerated amortization of senior note issuance cost, 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 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 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 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 and $6,188 paid to Preference Shares - Series A and $2,990 and $5,980 paid to Preference shares - Series B during the three and six months ended June 30, 2016 and 2015, respectively, and $2,939 and $6,532 paid to Preference shares - Series C during the three and six months ended June 30, 2016, respectively.  
                           
(7) Operating return on average common equity is a non-GAAP financial measures. Management uses 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 operating earnings available to common shareholders divided by average Maiden common shareholders' equity.  

 

Maiden Holdings, Ltd.
Supplemental Financial Data - Segment Information
(in thousands (000's))
(Unaudited)
                               
                               
For the Three Months Ended June 30, 2016   Diversified
Reinsurance
    AmTrust Reinsurance     Other     Total
Gross premiums written   $     164,834       $     523,488       $     -        $     688,322  
Net premiums written   $     161,294       $     489,133       $     -        $     650,427  
Net premiums earned   $   190,755       $   446,809       $     -        $   637,564  
Other insurance revenue       1,525             -              -            1,525  
Net loss and loss adjustment expenses         (144,246 )           (282,619 )           (124 )           (426,989 )
Commissions and other acquisition expenses         (45,496 )           (140,230 )           (1 )           (185,727 )
General and administrative expenses         (9,079 )           (963 )           -              (10,042 )
Underwriting income (loss)    $     (6,541 )     $     22,997       $     (125 )     $     16,331  
                               
Reconciliation to net income                              
Net investment income and realized gains on investment                                 35,657  
Interest and amortization expenses                                 (7,193 )
Accelerated amortization of senior note issuance cost                                 (2,345 )
Amortization of intangible assets                                 (615 )
Foreign exchange and other gains                                 5,520  
Other general and administrative expenses                                 (7,248 )
Income tax expense                                 (220 )
Net income                           $     39,887  
                               
Net loss and loss adjustment expense ratio(8)       75.0 %         63.3 %                 66.8 %
Commission and other acquisition expense ratio(9)       23.7 %         31.4 %                 29.1 %
General and administrative expense ratio(10)       4.7 %         0.2 %                 2.7 %
Combined ratio(12)       103.4 %         94.9 %                 98.6 %
                               
                               
                               
                               
For the Three Months Ended June 30, 2015   Diversified
Reinsurance
    AmTrust Reinsurance     Other     Total
Gross premiums written   $     151,646       $     522,522       $     -        $     674,168  
Net premiums written   $     144,785       $     484,833       $     -        $     629,618  
Net premiums earned   $   184,803       $   424,617       $     -        $     609,420  
Other insurance revenue       2,252             -              -              2,252  
Net loss and loss adjustment expenses         (142,992 )           (270,142 )           (1,793 )           (414,927 )
Commissions and other acquisition expenses         (42,412 )           (133,147 )           (138 )           (175,697 )
General and administrative expenses         (8,438 )           (797 )           -              (9,235 )
Underwriting income (loss)    $     (6,787 )     $     20,531       $     (1,931 )     $     11,813  
                               
Reconciliation to net income                              
Net investment income and realized gains on investment                                 35,399  
Interest and amortization expenses                                 (7,266 )
Amortization of intangible assets                                 (710 )
Foreign exchange and other losses                                 (5,191 )
Other general and administrative expenses                                 (7,066 )
Income tax expense                                 (468 )
Net income                            $     26,511  
                               
Net loss and loss adjustment expense ratio(8)       76.4 %         63.6 %                 67.8 %
Commission and other acquisition expense ratio(9)       22.7 %         31.4 %                 28.7 %
General and administrative expense ratio(10)       4.5 %         0.2 %                 2.7 %
Combined ratio(12)       103.6 %         95.2 %                 99.2 %
                               

 

Maiden Holdings, Ltd.
Supplemental Financial Data - Segment Information
(in thousands (000's))
(Unaudited)
                                 
                                 
For the Six Months Ended June 30, 2016   Diversified
Reinsurance
    AmTrust Reinsurance     Other     Total  
Gross premiums written   $   480,638       $     1,071,798             -        $     1,552,436    
Net premiums written   $   447,430       $   995,828             -        $   1,443,258    
Net premiums earned   $   363,011       $   890,562             -        $   1,253,573    
Other insurance revenue         6,351             -              -            6,351    
Net loss and loss adjustment expenses         (263,322 )           (564,393 )           (2,895 )           (830,610 )  
Commissions and other acquisition expenses         (100,027 )           (280,768 )           -              (380,795 )  
General and administrative expenses         (17,679 )           (1,549 )           -              (19,228 )  
Underwriting income (loss)    $     (11,666 )     $     43,852       $     (2,895 )     $     29,291    
                                 
Reconciliation to net income                                
Net investment income and realized gains on investment                               74,236    
Interest and amortization expenses                                 (14,458 )  
Accelerated amortization of senior note issuance cost                                 (2,345 )  
Amortization of intangible assets                                 (1,230 )  
Foreign exchange and other gains                                 5,787    
Other general and administrative expenses                                 (13,558 )  
Income tax expense                                 (1,007 )  
Net income                           $     76,716    
                                 
Net loss and loss adjustment expense ratio(8)       71.3 %         63.4 %                 65.9 %  
Commission and other acquisition expense ratio(9)       27.1 %         31.5 %                 30.2 %  
General and administrative expense ratio(10)       4.8 %         0.2 %                 2.6 %  
Combined ratio(12)       103.2 %         95.1 %                 98.7 %  
                                 
                                 
For the Six Months Ended June 30, 2015   Diversified
Reinsurance
    AmTrust Reinsurance     Other     Total  
Gross premiums written   $     456,987       $     1,051,448       $     (1 )     $     1,508,434    
Net premiums written   $     438,983       $   987,617       $     1       $     1,426,601    
Net premiums earned   $   377,487       $   809,250       $   2       $   1,186,739    
Other insurance revenue         7,231             -              -            7,231    
Net loss and loss adjustment expenses         (275,378 )           (513,236 )           (3,719 )           (792,333 )  
Commissions and other acquisition expenses         (100,618 )           (253,283 )           (138 )           (354,039 )  
General and administrative expenses         (17,758 )           (1,544 )           -              (19,302 )  
Underwriting income (loss)    $     (9,036 )     $     41,187       $     (3,855 )     $     28,296    
                                 
Reconciliation to net income                                
Net investment income and realized gains on investment                                 64,528    
Interest and amortization expenses                                 (14,530 )  
Amortization of intangible assets                                 (1,420 )  
Foreign exchange and other gains                                 2,635    
Other general and administrative expenses                                 (13,196 )  
Income tax expense                                 (1,268 )  
Net income                           $     65,045    
                                 
Net loss and loss adjustment expense ratio(8)       71.6 %         63.4 %                 66.3 %  
Commission and other acquisition expense ratio(9)       26.2 %         31.3 %                 29.7 %  
General and administrative expense ratio(10)       4.5 %         0.2 %                 2.7 %  
Combined ratio(12)       102.3 %         94.9 %                 98.7 %  
                                 
                                 
(8) Calculated by dividing net loss and loss adjustment expenses 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 loss adjustment expense ratio and 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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