Maiden Holdings Announce Q1 Financial Results
Maiden Holdings, Ltd. reported first quarter 2020 net income of $20.9 million or $0.25 per diluted common share, compared to a net loss of $36.6 million or $0.44 per diluted common share in the first quarter of 2019.
Non-GAAP operating earnings were $3.1 million or $0.04 per diluted common share for the three months ended March 31, 2020, compared to a non-GAAP operating loss of $27.6 million or $0.33 per diluted common share for the same period in 2019.
Maiden’s book value per common share was $0.24 at March 31, 2020 compared to $0.51 at December 31, 2019. On a non-GAAP basis, adjusted for the unamortized deferred gain on retroactive reinsurance recognized as of March 31, 2020 of $113.0 million, the adjusted book value per common share was $1.59 at March 31, 2020. Book value per common share on both a GAAP and non-GAAP basis was adversely affected by $44.1 million or $0.53 per share in unrealized losses on fixed income investments during the first quarter 2020, largely the result of elevated volatility in the financial markets brought about by the global COVID-19 pandemic.
Commenting on the first quarter of 2020 financial results, Lawrence F. Metz, Maiden’s President and Co-Chief Executive Officer said, “We are pleased to report our first quarterly profit in two years. As our loss experience continues to moderate and we continue to reduce our operating expenses, we remain focused on sustaining and increasing Maiden’s profitability.
“We are fortunate in these turbulent times that the application of government restrictions in the United States, Bermuda and Europe have not substantially affected our operations. We believe that we have immaterial exposure to claims from the COVID-19 pandemic, and we have taken all necessary actions to ensure the safety and security of our employees as our contingency plans have allowed us to operate effectively in a virtual environment.”
Patrick J. Haveron, Maiden’s Co-Chief Executive Officer and Chief Financial Officer added, “We are pleased to have completed our first quarter on a strong note after the re-domestication of Maiden Reinsurance Ltd. from Bermuda to Vermont. We were able to capture realized investment gains ahead of the market volatility in March which both contributed to the strong quarterly result and reduced the impact to book value from COVID-19 related market volatility.
“Prior year loss experience was benign during the first quarter and while the loss development of our run-off portfolio will require further maturity to fully emerge, recent trends have been less adverse, although there is no guarantee these trends will persist. We remain comfortable that the amount of limit available in our LPT/ADC with Enstar is sufficient and with nearly $2.6 billion in investable assets and a strong capital position now restored, we are working to identify strategies to deploy those assets and capital to create value for our shareholders.”
