Maiden Holdings Announce Q3 Financial Results

November 16, 2020

Maiden Holdings, Ltd. reported third quarter of 2020 net income of $2.2 million or $0.03 per diluted common share, compared to a net loss of $58.3 million or $0.70 per diluted common share in the third quarter of 2019.

The company said, “Non-GAAP operating loss[5] was $2.3 million or $0.03 per diluted common share for the third quarter of 2020, compared to non-GAAP operating earnings of $39.5 million or $0.47 per diluted common share for the same period in 2019.

“Maiden’s book value per common share[1] was $0.86 at September 30, 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 September 30, 2020 of $80.0 million, the Company’s adjusted book value per common share[2] was $1.81 at September 30, 2020.”

Commenting on the third quarter of 2020 financial results, Lawrence F. Metz, Maiden’s President and Co-Chief Executive Officer said, “Our return to profitability continued in the third quarter, with increasing stability in our loss experience driving the result.

“On a net basis we reported net favorable loss development for the quarter, and these ongoing improvements have enabled us to continue to extend our strategic vision in both the asset and capital management pillars previously articulated.

“More substantially, we simultaneously announced today our tender offer to repurchase a significant portion of our preference shares, which we believe will offer those shareholders a liquidity opportunity while enhancing Maiden’s value to common shareholders.

“Over the long-term, we believe this blended approach will enable Maiden to build value while retaining options to participate in the [re]insurance marketplace, though our present assessment remains that active [re]insurance underwriting is likely to present more limited opportunities. We continue to experience immaterial impacts from the COVID-19 pandemic on our operations, and we continue to lower our operating expenses.”

Patrick J. Haveron, Maiden’s Co-Chief Executive Officer and Chief Financial Officer added, “Our book value continued to increase as we extended our profitable 2020 during the third quarter. Our active portfolio management enabled us to capture realized investment gains in conjunction with expected settlement of our run-off insurance liabilities.

“While there is no guarantee that recent loss development trends will persist, with multiple successive quarters of stabilization, we are encouraged by them, although a prudent assessment dictates that the run-off portfolio still requires additional maturity to fully emerge.

“Nonetheless, the stability we have sought to activate our longer-term asset and capital management strategies are increasingly in place, although we are careful to approach these strategies in a deliberate fashion as we build Maiden’s value for the future.

“In addition to the tender offer announced today for a portion of our preference shares, during the quarter we completed a number of investment opportunities that we believe will produce appropriate risk-adjusted returns over the foreseeable future.

“We expect these initiatives to continue in the fourth quarter and beyond to further increase Maiden’s value to all shareholders.”

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