Maiden Holdings Announce Q3 Financial Results
Maiden Holdings reported a third quarter of 2019 net loss attributable to Maiden common shareholders of $58.3 million or $0.70 per diluted common share, compared to a net loss attributable to Maiden common shareholders of $308.8 million or $3.72 per diluted common share in the third quarter of 2018.
“Non-GAAP operating earnings were $39.8 million, or $0.48 per diluted common share in the third quarter of 2019 compared with a non-GAAP operating loss of $240.9 million, or $2.90 per diluted common share in the third quarter of 2018. Non-GAAP combined ratio for the third quarter of 2019 was 81.3%, compared with 150.8% in the third quarter of 2018,” the company said.
“Maiden’s book value per common share was $0.82 at September 30, 2019, compared to $1.08 at December 31, 2018. On a non-GAAP basis, adjusted for the unamortized deferred gain on retroactive reinsurance recognized as of September 30, 2019 of $104.5 million, the adjusted book value per common share was $2.08 at September 30, 2019.
Lawrence F. Metz, Maiden’s President and Chief Executive Officer said, “While our reported results continue to show the impact of additional reserve development, we are pleased that non-GAAP operating results have now turned positive during the third quarter, and the benefits of the numerous steps we have taken to set Maiden on a course to recovery are emerging. While more work remains, we believe these are all positive steps for Maiden.”
Patrick J. Haveron, Maiden’s Chief Financial Officer and Chief Operating Officer added, “Our recently completed LPT/ ADC Agreement with Enstar is having the tempering effect it was designed to have as we continue to de-risk our balance sheet and transition away from the reserve volatility of the last two years.
“Our third quarter reported results reflect the continuing challenges in certain lines of business such as General Liability and Commercial Auto Liability, the latter which has plagued the industry for an extended period. While this adverse development is being offset in part by continuing favorable development in Workers’ Compensation, we continue to closely monitor and respond to continued observed volatility and unfavorable emergence in those liability lines.
“Despite this, the cumulative impact of our strategic efforts is highlighted in our adjusted book value per share, and tracks with the continuing strengthening of our solvency ratios, which now exceed target levels at both the group and operating company level. We look for further improvements in these ratios as we close 2019.”
