Maiden: ‘Solid Results For Shareholders’
Bermuda-based Maiden Holdings, Ltd. yesterday [Mar.1] 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 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 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.”
Maiden Holdings, Ltd. is a Bermuda-based holding company formed in 2007. The company specialises in providing non-catastrophic, customised reinsurance productsand services, to small and mid-size insurance companies in the United States and Europe. Maiden’s 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.
Mr. 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 of $114.0 million for the year increased $13.1 million, or 13.0%, from $101.0 million in 2009.
