Maiden Holdings Announce Q4 Financial Results

March 23, 2020

Maiden Holdings, Ltd. reported a fourth quarter of 2019 net loss attributable to Maiden common shareholders of $21.5 million or $0.26 per diluted common share, compared to a net loss attributable to Maiden common shareholders of $269.2 million or $3.25 per diluted common share in the fourth quarter of 2018.

Non-GAAP operating loss was $3.5 million, or $0.04 per diluted common share in the fourth quarter of 2019 compared with a non-GAAP operating loss of $212.4 million, or $2.56 per diluted common share in the fourth quarter of 2018.

Maiden’s book value per common share was $0.51 at December 31, 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 December 31, 2019 of $113.0 million, the adjusted book value per common share[10] was $1.87 at December 31, 2019.

Commenting on the fourth quarter of 2019 financial results, Lawrence F. Metz, Maiden’s President and Chief Executive Officer said, “The completion of Maiden Reinsurance’s re-domestication to Vermont represents a major strategic step for us as it will continue to appreciably strengthen our solvency ratios and enable us to continue to evaluate our operating strategy during 2020 while leveraging the significant assets and capital we retain.

“We believe that we are positioned to make further progress for our shareholders during 2020. Further, our operating results continue to improve, although the fourth quarter results were impacted by slightly higher non-recurring expenses and it remains a principal focus to lower the run rate of all expenses.”

Patrick J. Haveron, Maiden’s Chief Financial Officer and Chief Operating Officer added, “The fourth quarter results continue to reflect the run-off of our previously terminated AmTrust reinsurance contracts and a tempering of the adverse prior year loss development which we experienced in recent years. We believe the LPT/ADC Agreement with Enstar is having the desired effect and will continue to provide adequate limit if further adverse reserve development emerges.

“While our adjusted book value per share was modestly reduced by fourth quarter results, this non-GAAP measure reflects the ultimate economic value that has been created with the measures we have implemented over the last 18 months. As we look to 2020, our strategic focus will center on improving risk-adjusted shareholder returns, whether via asset and capital management or active reinsurance underwriting, or a combination of both. Our present assessment of the reinsurance marketplace along with our current operating profile is that the risk-adjusted returns produced by other strategic initiatives may create greater shareholder value versus active reinsurance underwriting.”

The company noted, “Effective March 16, 2020, Maiden’s principal operating subsidiary, Maiden Reinsurance Ltd. [Maiden Reinsurance], completed its re-domestication to the State of Vermont in the U.S. Filings had previously been made with the Vermont Department of Financial Regulation [Vermont DFR], the Vermont Secretary of State and with the Bermuda Monetary Authority [BMA] to provide notice of the Company’s intent to re-domicile from Bermuda.

“Maiden Reinsurance is now subject to the statutes and regulations of Vermont in the ordinary course of business. As previously reported, the Company determined that re-domesticating Maiden Reinsurance to Vermont enables the Company to better align its operations, capital and resources with our liabilities, which originate mostly in the U.S., resulting in a more efficient structure. The re-domestication, in combination with the transactions completed pursuant to the strategic review in 2018 and 2019, will continue to strengthen the Company’s capital position and solvency ratios. The re-domestication does not apply to the parent holding company, which remains a Bermuda-based holding company. Securities issued by the Company are not affected by the re-domestication of Maiden Reinsurance.”

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