Maiden Q4 & Full Year 2018 Financial Results
Bermuda-based Maiden Holdings reported a fourth quarter 2018 net loss attributable to Maiden common shareholders of $269.2 million or $3.25 per diluted common share, compared to a net loss attributable to Maiden common shareholders of $133.6 million or $1.59 per diluted common share in the fourth quarter of 2017.
The net loss attributable to Maiden common shareholders was $570.3 million or $6.87 per diluted common share in 2018, compared to a net loss attributable to Maiden common shareholders of $199.1 million or $2.32 per diluted common share in 2017.
The non-GAAP operating loss was $212.4 million, or $2.56 per diluted common share, compared with a non-GAAP operating loss of $126.4 million, or $1.51 per diluted common share in the fourth quarter of 2017. Book value per common share was $1.08 at December 31, 2018.
Commenting on the Company’s results, Maiden’s President and Chief Executive Officer, Lawrence F. Metz said, “We recognize that 2018 was an extremely difficult year for all of our shareholders and dedicated employees. With our recently announced revised LPT/ADC transaction with Enstar, we believe we are nearing the end of our strategic review process.
“Since our third quarter report we have continued to take decisive action, completing the sale of our US reinsurance business to Enstar, mutually agreeing with AmTrust to first amend and then terminate our quota share reinsurance contracts effective January 1, 2019, completing the sale of certain of our European subsidiaries, and entering into a new LPT/ADC agreement with Enstar. We look forward to now taking the necessary steps to enhance our business and create lasting shareholder value.”
Patrick J. Haveron, Maiden’s Chief Financial Officer and Chief Operating Officer added, “Since September 1, 2018 the series of strategic measures we have implemented have materially de-risked our balance sheet, improved liquidity, significantly strengthened our capital position relative to regulatory requirements, and cured our breach of the Bermuda Enhanced Capital Requirement.
“Looking ahead, we have also reduced our annual total operating expenses by more than $50 million and look to improve on that to reflect the significant changes in our business during 2018 and 2019. The new LPT/ADC with Enstar will further solidify the progress we have made by protecting our reserves while retaining more assets for investment. Maiden enters 2019 with a stronger balance sheet and we expect to further improve our solvency ratios as we look to rebuild shareholder value and begin re-positioning our business for the future.”
[6][7][8][9][10] Loss ratio, commission and other acquisition expense ratio, general and administrative expense ratio, expense ratio and combined ratio are non-GAAP operating metrics. Please see the additional information on these measures under Non-GAAP Financial Measures tables.
