QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Bermuda | 98-0570192 | ||||
(State or other jurisdiction of incorporation or organization) | (IRS Employer Identification No.) | ||||
94 Pitts Bay Road | |||||
Bermuda | HM08 | ||||
(Address of principal executive offices) | (Zip Code) |
Title of Each Class | Trading symbol(s) | Name of Each Exchange on Which Registered | ||||||||||||
Common Shares, par value $0.01 per share | MHLD | NASDAQ Capital Market | ||||||||||||
Series A Preference Shares, par value $0.01 per share | MH.PA | New York Stock Exchange | ||||||||||||
Series C Preference Shares, par value $0.01 per share | MH.PC | New York Stock Exchange | ||||||||||||
Series D Preference Shares, par value $0.01 per share | MH.PD | New York Stock Exchange |
Large accelerated filer | ☐ | Accelerated filer | ☒ | |||||||||||
Non-accelerated filer | ☐ | Smaller reporting company | ☒ | |||||||||||
Emerging growth company | ☐ |
Page | ||||||||
PART I - Financial Information | ||||||||
PART II - Other Information | ||||||||
September 30, 2017 | December 31, 2016 | |||||||||||||||||||||
(Unaudited) | (Audited) | September 30, 2022 | December 31, 2021 | |||||||||||||||||||
ASSETS | ASSETS | (Unaudited) | (Audited) | |||||||||||||||||||
Investments: | Investments: | |||||||||||||||||||||
Fixed maturities, available-for-sale, at fair value (amortized cost 2017: $3,844,996; 2016: $4,005,642) | $ | 3,884,587 | $ | 3,971,666 | ||||||||||||||||||
Fixed maturities, held to maturity, at amortized cost (fair value 2017: $1,152,106; 2016: $766,135) | 1,118,368 | 752,212 | ||||||||||||||||||||
Other investments, at fair value (cost 2017: $5,640; 2016: $10,057) | 7,041 | 13,060 | ||||||||||||||||||||
Fixed maturities, available-for-sale, at fair value (amortized cost 2022 - $432,314; 2021 - $595,344) | Fixed maturities, available-for-sale, at fair value (amortized cost 2022 - $432,314; 2021 - $595,344) | $ | 371,973 | $ | 597,145 | |||||||||||||||||
Equity securities, at fair value (cost 2022 - $38,819; 2021 - $23,315) | Equity securities, at fair value (cost 2022 - $38,819; 2021 - $23,315) | 42,600 | 24,003 | |||||||||||||||||||
Equity method investments | Equity method investments | 80,165 | 83,742 | |||||||||||||||||||
Other investments | Other investments | 140,804 | 117,722 | |||||||||||||||||||
Total investments | 5,009,996 | 4,736,938 | Total investments | 635,542 | 822,612 | |||||||||||||||||
Cash and cash equivalents | 182,677 | 45,747 | Cash and cash equivalents | 24,376 | 26,668 | |||||||||||||||||
Restricted cash and cash equivalents | 131,598 | 103,788 | Restricted cash and cash equivalents | 48,122 | 39,419 | |||||||||||||||||
Accrued investment income | 35,547 | 36,517 | Accrued investment income | 4,655 | 5,695 | |||||||||||||||||
Reinsurance balances receivable, net (includes $150,985 and $132,056 from related parties in 2017 and 2016, respectively) | 479,472 | 410,166 | ||||||||||||||||||||
Reinsurance recoverable on unpaid losses (includes $2,374 and $5,085 from related parties in 2017 and 2016, respectively) | 140,629 | 99,936 | ||||||||||||||||||||
Reinsurance balances receivable, net (includes $10,207 and $17,471 from related parties in 2022 and 2021, respectively) | Reinsurance balances receivable, net (includes $10,207 and $17,471 from related parties in 2022 and 2021, respectively) | 12,368 | 19,507 | |||||||||||||||||||
Reinsurance recoverable on unpaid losses | Reinsurance recoverable on unpaid losses | 547,975 | 562,845 | |||||||||||||||||||
Loan to related party | 167,975 | 167,975 | Loan to related party | 167,975 | 167,975 | |||||||||||||||||
Deferred commission and other acquisition expenses (includes $371,733 and $339,172 from related parties in 2017 and 2016, respectively) | 469,617 | 424,605 | ||||||||||||||||||||
Goodwill and intangible assets, net | 76,116 | 77,715 | ||||||||||||||||||||
Deferred commission and other acquisition expenses (includes $25,854 and $34,170 from related parties in 2022 and 2021, respectively) | Deferred commission and other acquisition expenses (includes $25,854 and $34,170 from related parties in 2022 and 2021, respectively) | 27,295 | 36,703 | |||||||||||||||||||
Funds withheld receivable (includes $490,603 and $601,460 from related parties in 2022 and 2021, respectively) | Funds withheld receivable (includes $490,603 and $601,460 from related parties in 2022 and 2021, respectively) | 516,589 | 636,412 | |||||||||||||||||||
Other assets | 145,470 | 148,912 | Other assets | 4,717 | 4,774 | |||||||||||||||||
Total assets | $ | 6,839,097 | $ | 6,252,299 | Total assets | $ | 1,989,614 | $ | 2,322,610 | |||||||||||||
LIABILITIES | LIABILITIES | |||||||||||||||||||||
Reserve for loss and loss adjustment expenses (includes $2,131,851 and $1,776,784 from related parties in 2017 and 2016, respectively) | $ | 3,365,011 | $ | 2,896,496 | ||||||||||||||||||
Unearned premiums (includes $1,238,085 and $1,152,484 from related parties in 2017 and 2016, respectively) | 1,601,069 | 1,475,506 | ||||||||||||||||||||
Accrued expenses and other liabilities | 175,540 | 161,334 | ||||||||||||||||||||
Liability for investments purchased | 21,658 | 6,402 | ||||||||||||||||||||
Reserve for loss and loss adjustment expenses (includes $1,013,374 and $1,338,269 from related parties in 2022 and 2021, respectively) | Reserve for loss and loss adjustment expenses (includes $1,013,374 and $1,338,269 from related parties in 2022 and 2021, respectively) | $ | 1,146,084 | $ | 1,489,373 | |||||||||||||||||
Unearned premiums (includes $69,407 and $91,730 from related parties in 2022 and 2021, respectively) | Unearned premiums (includes $69,407 and $91,730 from related parties in 2022 and 2021, respectively) | 73,760 | 100,131 | |||||||||||||||||||
Deferred gain on retroactive reinsurance | Deferred gain on retroactive reinsurance | 39,270 | 48,960 | |||||||||||||||||||
Accrued expenses and other liabilities (includes $128,443 and $29,408 from related parties in 2022 and 2021, respectively) | Accrued expenses and other liabilities (includes $128,443 and $29,408 from related parties in 2022 and 2021, respectively) | 147,591 | 44,542 | |||||||||||||||||||
Senior notes - principal amount | 262,500 | 362,500 | Senior notes - principal amount | 262,500 | 262,500 | |||||||||||||||||
Less: unamortized debt issuance costs | 8,070 | 11,091 | Less: unamortized debt issuance costs | 6,984 | 7,153 | |||||||||||||||||
Senior notes, net | 254,430 | 351,409 | Senior notes, net | 255,516 | 255,347 | |||||||||||||||||
Total liabilities | 5,417,708 | 4,891,147 | Total liabilities | 1,662,221 | 1,938,353 | |||||||||||||||||
Commitments and Contingencies | Commitments and Contingencies | |||||||||||||||||||||
EQUITY | EQUITY | |||||||||||||||||||||
Preference shares | 465,000 | 315,000 | Preference shares | 119,672 | 159,210 | |||||||||||||||||
Common shares ($0.01 par value; 87,728,554 and 87,321,012 shares issued in 2017 and 2016, respectively; 84,624,829 and 86,271,109 shares outstanding in 2017 and 2016, respectively) | 877 | 873 | ||||||||||||||||||||
Common shares ($0.01 par value; 93,414,080 and 92,316,107 shares issued in 2022 and 2021, respectively; 87,161,499 and 86,467,242 shares outstanding in 2022 and 2021, respectively) | Common shares ($0.01 par value; 93,414,080 and 92,316,107 shares issued in 2022 and 2021, respectively; 87,161,499 and 86,467,242 shares outstanding in 2022 and 2021, respectively) | 934 | 923 | |||||||||||||||||||
Additional paid-in capital | 747,464 | 749,256 | Additional paid-in capital | 772,474 | 768,650 | |||||||||||||||||
Accumulated other comprehensive income | 46,079 | 14,997 | ||||||||||||||||||||
Retained earnings | 181,510 | 285,662 | ||||||||||||||||||||
Treasury shares, at cost (3,103,725 and 1,049,903 shares in 2017 and 2016, respectively) | (19,903 | ) | (4,991 | ) | ||||||||||||||||||
Total Maiden shareholders’ equity | 1,421,027 | 1,360,797 | ||||||||||||||||||||
Noncontrolling interests in subsidiaries | 362 | 355 | ||||||||||||||||||||
Total equity | 1,421,389 | 1,361,152 | ||||||||||||||||||||
Accumulated other comprehensive loss | Accumulated other comprehensive loss | (51,553) | (12,215) | |||||||||||||||||||
Accumulated deficit | Accumulated deficit | (479,109) | (498,295) | |||||||||||||||||||
Treasury shares, at cost (6,252,581 and 5,848,865 shares in 2022 and 2021, respectively) | Treasury shares, at cost (6,252,581 and 5,848,865 shares in 2022 and 2021, respectively) | (35,025) | (34,016) | |||||||||||||||||||
Total shareholders’ equity | Total shareholders’ equity | 327,393 | 384,257 | |||||||||||||||||||
Total liabilities and equity | $ | 6,839,097 | $ | 6,252,299 | Total liabilities and equity | $ | 1,989,614 | $ | 2,322,610 |
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | |||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||
Revenues | ||||||||||||||||||||||||||
Gross premiums written | $ | 5,380 | $ | 6,821 | $ | (1,451) | $ | 7,865 | ||||||||||||||||||
Net premiums written | $ | 5,222 | $ | 6,953 | $ | (1,915) | $ | 7,518 | ||||||||||||||||||
Change in unearned premiums | 7,029 | 8,077 | 25,731 | 32,588 | ||||||||||||||||||||||
Net premiums earned | 12,251 | 15,030 | 23,816 | 40,106 | ||||||||||||||||||||||
Other insurance revenue | 368 | 138 | 888 | 946 | ||||||||||||||||||||||
Net investment income | 6,637 | 7,477 | 20,871 | 24,596 | ||||||||||||||||||||||
Net realized and unrealized investment (losses) gains | (1,572) | (937) | 2,848 | 8,013 | ||||||||||||||||||||||
Total revenues | 17,684 | 21,708 | 48,423 | 73,661 | ||||||||||||||||||||||
Expenses | ||||||||||||||||||||||||||
Net loss and loss adjustment expenses | 17,426 | 10,514 | 22,017 | 7,546 | ||||||||||||||||||||||
Commission and other acquisition expenses | 5,398 | 6,313 | 12,811 | 19,154 | ||||||||||||||||||||||
General and administrative expenses | 6,491 | 6,650 | 24,671 | 29,553 | ||||||||||||||||||||||
Interest and amortization expenses | 4,833 | 4,832 | 14,498 | 14,495 | ||||||||||||||||||||||
Foreign exchange and other gains | (8,586) | (4,116) | (19,121) | (6,070) | ||||||||||||||||||||||
Total expenses | 25,562 | 24,193 | 54,876 | 64,678 | ||||||||||||||||||||||
(Loss) income before income taxes and interest in (loss) income of equity method investments | (7,878) | (2,485) | (6,453) | 8,983 | ||||||||||||||||||||||
Less: income tax (benefit) expense | (91) | (155) | 451 | (363) | ||||||||||||||||||||||
Interest in (loss) income of equity method investments | (373) | (810) | (2,143) | 4,912 | ||||||||||||||||||||||
Net (loss) income | (8,160) | (3,140) | (9,047) | 14,258 | ||||||||||||||||||||||
Gain from repurchase of preference shares | — | 6,004 | 28,233 | 87,168 | ||||||||||||||||||||||
Net (loss) income available to Maiden common shareholders | $ | (8,160) | $ | 2,864 | $ | 19,186 | $ | 101,426 | ||||||||||||||||||
Basic and diluted (loss) earnings per share attributable to common shareholders | $ | (0.09) | $ | 0.03 | $ | 0.22 | $ | 1.17 | ||||||||||||||||||
Weighted average number of common shares - basic | 87,161,499 | 86,433,780 | 86,935,823 | 85,937,012 | ||||||||||||||||||||||
Adjusted weighted average number of common shares and assumed conversions - diluted | 87,161,499 | 86,438,232 | 86,937,552 | 85,941,418 |
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | |||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
Revenues | ||||||||||||||||
Gross premiums written | $ | 630,972 | $ | 706,854 | $ | 2,259,597 | $ | 2,259,290 | ||||||||
Net premiums written | $ | 617,330 | $ | 690,653 | $ | 2,201,950 | $ | 2,133,911 | ||||||||
Change in unearned premiums | 36,536 | 7,625 | (127,475 | ) | (182,060 | ) | ||||||||||
Net premiums earned | 653,866 | 698,278 | 2,074,475 | 1,951,851 | ||||||||||||
Other insurance revenue | 2,488 | 2,345 | 7,816 | 8,696 | ||||||||||||
Net investment income | 40,823 | 35,666 | 123,492 | 107,291 | ||||||||||||
Net realized gains on investment | 5,859 | 1,900 | 8,316 | 4,511 | ||||||||||||
Total revenues | 703,036 | 738,189 | 2,214,099 | 2,072,349 | ||||||||||||
Expenses | ||||||||||||||||
Net loss and loss adjustment expenses | 535,968 | 466,751 | 1,545,157 | 1,297,361 | ||||||||||||
Commission and other acquisition expenses | 193,462 | 206,706 | 625,530 | 587,501 | ||||||||||||
General and administrative expenses | 19,492 | 16,952 | 52,252 | 49,738 | ||||||||||||
Interest and amortization expenses | 4,829 | 6,856 | 18,430 | 21,314 | ||||||||||||
Accelerated amortization of senior note issuance cost | — | — | 2,809 | 2,345 | ||||||||||||
Amortization of intangible assets | 533 | 616 | 1,599 | 1,846 | ||||||||||||
Foreign exchange losses (gains) | 3,550 | (687 | ) | 12,193 | (6,474 | ) | ||||||||||
Total expenses | 757,834 | 697,194 | 2,257,970 | 1,953,631 | ||||||||||||
(Loss) income before income taxes | (54,798 | ) | 40,995 | (43,871 | ) | 118,718 | ||||||||||
Less: income tax expense | 256 | 199 | 1,017 | 1,206 | ||||||||||||
Net (loss) income | (55,054 | ) | 40,796 | (44,888 | ) | 117,512 | ||||||||||
Add: net loss attributable to noncontrolling interests | 3 | 56 | 34 | 166 | ||||||||||||
Net (loss) income attributable to Maiden | (55,051 | ) | 40,852 | (44,854 | ) | 117,678 | ||||||||||
Dividends on preference shares | (8,545 | ) | (9,023 | ) | (20,611 | ) | (27,723 | ) | ||||||||
Net (loss) income attributable to Maiden common shareholders | $ | (63,596 | ) | $ | 31,829 | $ | (65,465 | ) | $ | 89,955 | ||||||
Basic (loss) earnings per share attributable to Maiden common shareholders | $ | (0.74 | ) | $ | 0.42 | $ | (0.76 | ) | $ | 1.20 | ||||||
Diluted (loss) earnings per share attributable to Maiden common shareholders | $ | (0.74 | ) | $ | 0.40 | $ | (0.76 | ) | $ | 1.15 | ||||||
Dividends declared per common share | $ | 0.15 | $ | 0.14 | $ | 0.45 | $ | 0.42 | ||||||||
Weighted average number of common shares - basic | 85,859,201 | 75,993,451 | 86,256,481 | 74,625,839 | ||||||||||||
Adjusted weighted average number of common shares and assumed conversions - diluted | 85,859,201 | 86,150,951 | 86,256,481 | 86,018,019 |
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | |||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||
Net (loss) income | $ | (8,160) | $ | (3,140) | $ | (9,047) | $ | 14,258 | ||||||||||||||||||
Other comprehensive loss | ||||||||||||||||||||||||||
Net unrealized holdings losses on fixed maturity investments arising during period | (14,864) | (10,539) | (56,446) | (27,864) | ||||||||||||||||||||||
Net unrealized holdings gains (losses) on equity method investments arising during period | — | (4,078) | 4,414 | (7,497) | ||||||||||||||||||||||
Adjustment for reclassification of net realized gains recognized in net (loss) income | (48) | (2,007) | (5,696) | (7,032) | ||||||||||||||||||||||
Foreign currency translation adjustment | 2,246 | 6,036 | 18,094 | 13,627 | ||||||||||||||||||||||
Other comprehensive loss, before tax | (12,666) | (10,588) | (39,634) | (28,766) | ||||||||||||||||||||||
Income tax benefit related to components of other comprehensive loss | 53 | 6 | 296 | 50 | ||||||||||||||||||||||
Other comprehensive loss, after tax | (12,613) | (10,582) | (39,338) | (28,716) | ||||||||||||||||||||||
Comprehensive loss | $ | (20,773) | $ | (13,722) | $ | (48,385) | $ | (14,458) | ||||||||||||||||||
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | |||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
Net (loss) income | $ | (55,054 | ) | $ | 40,796 | $ | (44,888 | ) | $ | 117,512 | ||||||
Other comprehensive income | ||||||||||||||||
Net unrealized holdings gains on available-for-sale fixed maturities arising during the period | 25,019 | 8,888 | 68,798 | 155,052 | ||||||||||||
Adjustment for reclassification of net realized (gains) losses recognized in net income | (3,650 | ) | (1,202 | ) | 1,123 | 578 | ||||||||||
Foreign currency translation adjustment | (10,828 | ) | (2,730 | ) | (38,803 | ) | (7,927 | ) | ||||||||
Other comprehensive income, before tax | 10,541 | 4,956 | 31,118 | 147,703 | ||||||||||||
Income tax (expense) benefit related to components of other comprehensive income | (25 | ) | 11 | 5 | (28 | ) | ||||||||||
Other comprehensive income, after tax | 10,516 | 4,967 | 31,123 | 147,675 | ||||||||||||
Comprehensive (loss) income | (44,538 | ) | 45,763 | (13,765 | ) | 265,187 | ||||||||||
Net loss attributable to noncontrolling interests | 3 | 56 | 34 | 166 | ||||||||||||
Other comprehensive income attributable to noncontrolling interests | (12 | ) | (17 | ) | (41 | ) | (32 | ) | ||||||||
Comprehensive (income) loss attributable to noncontrolling interests | (9 | ) | 39 | (7 | ) | 134 | ||||||||||
Comprehensive (loss) income attributable to Maiden | $ | (44,547 | ) | $ | 45,802 | $ | (13,772 | ) | $ | 265,321 |
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||
For the Nine Months Ended September 30, | 2017 | 2016 | ||||||||||||||||||||||||||||||||
Preference shares | ||||||||||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||||||||||
Preference shares - Series A, C and D | Preference shares - Series A, C and D | |||||||||||||||||||||||||||||||||
Beginning balance | $ | 315,000 | $ | 480,000 | Beginning balance | $ | 119,672 | $ | 181,384 | $ | 159,210 | $ | 394,310 | |||||||||||||||||||||
Issuance of Preference Shares – Series D | 150,000 | — | ||||||||||||||||||||||||||||||||
Mandatory conversion of Preference Shares - Series B | — | (165,000 | ) | |||||||||||||||||||||||||||||||
Repurchase of Preference Shares – Series A | Repurchase of Preference Shares – Series A | — | (3,384) | (10,891) | (87,978) | |||||||||||||||||||||||||||||
Repurchase of Preference Shares – Series C | Repurchase of Preference Shares – Series C | — | (6,037) | (15,644) | (72,931) | |||||||||||||||||||||||||||||
Repurchase of Preference Shares – Series D | Repurchase of Preference Shares – Series D | — | (4,545) | (13,003) | (65,983) | |||||||||||||||||||||||||||||
Ending balance | 465,000 | 315,000 | Ending balance | 119,672 | 167,418 | 119,672 | 167,418 | |||||||||||||||||||||||||||
Common shares | Common shares | |||||||||||||||||||||||||||||||||
Beginning balance | 873 | 747 | Beginning balance | 934 | 922 | 923 | 898 | |||||||||||||||||||||||||||
Exercise of options and issuance of shares | 4 | 4 | ||||||||||||||||||||||||||||||||
Shares issued on mandatory conversion of Preference Shares - Series B | — | 121 | ||||||||||||||||||||||||||||||||
Issuance of common shares from vesting of stock based compensation | Issuance of common shares from vesting of stock based compensation | — | 1 | 11 | 25 | |||||||||||||||||||||||||||||
Ending balance | 877 | 872 | Ending balance | 934 | 923 | 934 | 923 | |||||||||||||||||||||||||||
Additional paid-in capital | Additional paid-in capital | |||||||||||||||||||||||||||||||||
Beginning balance | 749,256 | 579,178 | Beginning balance | 772,241 | 767,452 | 768,650 | 756,122 | |||||||||||||||||||||||||||
Exercise of options and issuance of common shares | 1,072 | 662 | ||||||||||||||||||||||||||||||||
Issuance of common shares from vesting of stock based compensation | Issuance of common shares from vesting of stock based compensation | — | (1) | (11) | (25) | |||||||||||||||||||||||||||||
Share-based compensation expense | 2,194 | 2,625 | Share-based compensation expense | 233 | 253 | 2,504 | 4,568 | |||||||||||||||||||||||||||
Issuance costs of Preference Shares - Series D | (5,058 | ) | — | |||||||||||||||||||||||||||||||
Mandatory conversion of Preference Shares - Series B | — | 164,879 | ||||||||||||||||||||||||||||||||
Others | — | (141 | ) | |||||||||||||||||||||||||||||||
Repurchase of Preference Shares | Repurchase of Preference Shares | — | 467 | 1,321 | 7,571 | |||||||||||||||||||||||||||||
Cash settlement of restricted shares/options granted | Cash settlement of restricted shares/options granted | — | — | 10 | (65) | |||||||||||||||||||||||||||||
Ending balance | 747,464 | 747,203 | Ending balance | 772,474 | 768,171 | 772,474 | 768,171 | |||||||||||||||||||||||||||
Accumulated other comprehensive income | ||||||||||||||||||||||||||||||||||
Accumulated other comprehensive (loss) income | Accumulated other comprehensive (loss) income | |||||||||||||||||||||||||||||||||
Beginning balance | 14,997 | (23,767 | ) | Beginning balance | (38,940) | 5,723 | (12,215) | 23,857 | ||||||||||||||||||||||||||
Change in net unrealized gains on investment | 69,926 | 155,602 | ||||||||||||||||||||||||||||||||
Change in net unrealized investment losses | Change in net unrealized investment losses | (14,859) | (16,618) | (57,432) | (42,343) | |||||||||||||||||||||||||||||
Foreign currency translation adjustment | (38,844 | ) | (7,959 | ) | Foreign currency translation adjustment | 2,246 | 6,036 | 18,094 | 13,627 | |||||||||||||||||||||||||
Ending balance | 46,079 | 123,876 | Ending balance | (51,553) | (4,859) | (51,553) | (4,859) | |||||||||||||||||||||||||||
Retained earnings | ||||||||||||||||||||||||||||||||||
Accumulated deficit | Accumulated deficit | |||||||||||||||||||||||||||||||||
Beginning balance | 285,662 | 316,184 | Beginning balance | (470,949) | (517,376) | (498,295) | (615,837) | |||||||||||||||||||||||||||
Net (loss) income attributable to Maiden | (44,854 | ) | 117,678 | |||||||||||||||||||||||||||||||
Dividends on preference shares | (20,611 | ) | (27,723 | ) | ||||||||||||||||||||||||||||||
Dividends on common shares | (38,687 | ) | (32,799 | ) | ||||||||||||||||||||||||||||||
Cash settlement of restricted shares granted | Cash settlement of restricted shares granted | — | — | — | (101) | |||||||||||||||||||||||||||||
Net (loss) income | Net (loss) income | (8,160) | (3,140) | (9,047) | 14,258 | |||||||||||||||||||||||||||||
Gain on repurchase of preference shares | Gain on repurchase of preference shares | — | 6,004 | 28,233 | 87,168 | |||||||||||||||||||||||||||||
Ending balance | 181,510 | 373,340 | Ending balance | (479,109) | (514,512) | (479,109) | (514,512) | |||||||||||||||||||||||||||
Treasury shares | Treasury shares | |||||||||||||||||||||||||||||||||
Beginning balance | (4,991 | ) | (4,521 | ) | Beginning balance | (35,025) | (33,893) | (34,016) | (31,534) | |||||||||||||||||||||||||
Shares repurchased | (14,912 | ) | (470 | ) | Shares repurchased | — | (74) | (1,009) | (2,433) | |||||||||||||||||||||||||
Ending balance | (19,903 | ) | (4,991 | ) | Ending balance | (35,025) | (33,967) | (35,025) | (33,967) | |||||||||||||||||||||||||
Noncontrolling interests in subsidiaries | ||||||||||||||||||||||||||||||||||
Beginning balance | 355 | 1,278 | ||||||||||||||||||||||||||||||||
Change in minority interest | — | (54 | ) | |||||||||||||||||||||||||||||||
Dividend paid to noncontrolling interest | — | (31 | ) | |||||||||||||||||||||||||||||||
Net loss attributable to noncontrolling interests | (34 | ) | (166 | ) | ||||||||||||||||||||||||||||||
Foreign currency translation adjustment | 41 | 32 | ||||||||||||||||||||||||||||||||
Ending balance | 362 | 1,059 | ||||||||||||||||||||||||||||||||
Total equity | $ | 1,421,389 | $ | 1,556,359 | ||||||||||||||||||||||||||||||
Total shareholders' equity | Total shareholders' equity | $ | 327,393 | $ | 383,174 | $ | 327,393 | $ | 383,174 |
For the Nine Months Ended September 30, | 2017 | 2016 | ||||||
Cash flows from operating activities | ||||||||
Net (loss) income | $ | (44,888 | ) | $ | 117,512 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Depreciation, amortization and share-based compensation | 10,472 | 16,841 | ||||||
Net realized gains on investment | (8,316 | ) | (4,511 | ) | ||||
Foreign exchange losses (gains) | 12,193 | (6,474 | ) | |||||
Changes in assets – (increase) decrease: | ||||||||
Reinsurance balances receivable, net | (62,517 | ) | (154,091 | ) | ||||
Reinsurance recoverable on unpaid losses | (40,455 | ) | (26,281 | ) | ||||
Accrued investment income | 1,545 | (1,537 | ) | |||||
Deferred commission and other acquisition expenses | (43,171 | ) | (49,713 | ) | ||||
Other assets | (1,865 | ) | (32,027 | ) | ||||
Changes in liabilities – increase (decrease): | ||||||||
Reserve for loss and loss adjustment expenses | 419,660 | 250,937 | ||||||
Unearned premiums | 117,882 | 204,752 | ||||||
Accrued expenses and other liabilities | 14,239 | 10,749 | ||||||
Net cash provided by operating activities | 374,779 | 326,157 | ||||||
Cash flows from investing activities: | ||||||||
Purchases of investments: | ||||||||
Purchases of fixed-maturities – available-for-sale | (715,838 | ) | (732,001 | ) | ||||
Purchases of other investments | (986 | ) | (167 | ) | ||||
Sale of investments: | ||||||||
Proceeds from sales of fixed-maturities – available-for-sale | 199,751 | 101,923 | ||||||
Proceeds from maturities and calls of fixed maturities – available-for-sale | 302,496 | 442,490 | ||||||
Proceeds from maturities and calls of fixed maturities – held to maturity | 20,744 | — | ||||||
Proceeds from sale and redemption of other investments | 11,119 | 572 | ||||||
Increase in restricted cash and cash equivalents | (27,040 | ) | (103,685 | ) | ||||
Other, net | (2,299 | ) | (521 | ) | ||||
Net cash used in investing activities | (212,053 | ) | (291,389 | ) | ||||
Cash flows from financing activities: | ||||||||
Preference shares, net of issuance costs | 144,942 | — | ||||||
Senior notes, net of issuance costs | — | 106,424 | ||||||
Redemption of 2012 senior notes | (100,000 | ) | — | |||||
Redemption of 2011 senior notes | — | (107,500 | ) | |||||
Issuance of common shares | 1,076 | 666 | ||||||
Repurchase of common shares | (14,912 | ) | (470 | ) | ||||
Dividends paid – Maiden common shareholders | (38,935 | ) | (31,062 | ) | ||||
Dividends paid – preference shares | (20,611 | ) | (27,723 | ) | ||||
Net cash used in financing activities | (28,440 | ) | (59,665 | ) | ||||
Effect of exchange rate changes on foreign currency cash | 2,644 | 2,715 | ||||||
Net increase (decrease) in cash and cash equivalents | 136,930 | (22,182 | ) | |||||
Cash and cash equivalents, beginning of period | 45,747 | 89,641 | ||||||
Cash and cash equivalents, end of period | $ | 182,677 | $ | 67,459 |
For the Nine Months Ended September 30, | 2022 | 2021 | ||||||||||||
Cash flows from operating activities | ||||||||||||||
Net (loss) income | $ | (9,047) | $ | 14,258 | ||||||||||
Adjustments to reconcile net (loss) income to net cash flows from operating activities: | ||||||||||||||
Depreciation, amortization and share-based compensation | 1,628 | 7,798 | ||||||||||||
Interest in loss (income) of equity method investments | 2,143 | (4,912) | ||||||||||||
Net realized and unrealized investment gains | (2,848) | (8,013) | ||||||||||||
Foreign exchange and other gains | (19,121) | (6,070) | ||||||||||||
Changes in assets – (increase) decrease: | ||||||||||||||
Reinsurance balances receivable, net | 6,163 | (12,039) | ||||||||||||
Reinsurance recoverable on unpaid losses | 6,238 | 6,590 | ||||||||||||
Accrued investment income | 635 | 3,663 | ||||||||||||
Deferred commission and other acquisition expenses | 9,192 | 11,460 | ||||||||||||
Funds withheld receivable | 1,037 | 9,916 | ||||||||||||
Other assets | (235) | (385) | ||||||||||||
Changes in liabilities – increase (decrease): | ||||||||||||||
Reserve for loss and loss adjustment expenses | (179,627) | (304,385) | ||||||||||||
Unearned premiums | (25,725) | (33,424) | ||||||||||||
Deferred gain on retroactive reinsurance | (270) | — | ||||||||||||
Accrued expenses and other liabilities | 110,004 | 15,793 | ||||||||||||
Net cash used in operating activities | (99,833) | (299,750) | ||||||||||||
Cash flows from investing activities: | ||||||||||||||
Purchases of fixed maturities | (34,022) | (208,969) | ||||||||||||
Purchases of other investments | (28,225) | (23,647) | ||||||||||||
Purchases of equity method investments | (26,483) | (42,551) | ||||||||||||
Purchases of equity securities | (15,592) | (13,694) | ||||||||||||
Proceeds from sales of fixed maturities | 139,645 | 332,636 | ||||||||||||
Proceeds from maturities, paydowns and calls of fixed maturities | 48,003 | 294,878 | ||||||||||||
Proceeds from sale and redemption of other investments | 3,794 | 341 | ||||||||||||
Proceeds from sale and redemption of equity method investments | 32,332 | 4,802 | ||||||||||||
Proceeds from sale and redemption of equity securities | — | 441 | ||||||||||||
Others, net | (73) | (31) | ||||||||||||
Net cash provided by investing activities | 119,379 | 344,206 | ||||||||||||
Cash flows from financing activities: | ||||||||||||||
Repurchase of common shares | (1,009) | (2,433) | ||||||||||||
Repurchase of preference shares | (9,984) | (132,153) | ||||||||||||
Change in other liabilities due to bank overdraft | — | 5,764 | ||||||||||||
Cash settlement of restricted shares granted and options exercised | 10 | (166) | ||||||||||||
Net cash used in financing activities | (10,983) | (128,988) | ||||||||||||
Effect of exchange rate changes on foreign currency cash, restricted cash and equivalents | (2,152) | (333) | ||||||||||||
Net increase (decrease) in cash, restricted cash and cash equivalents | 6,411 | (84,865) | ||||||||||||
Cash, restricted cash and cash equivalents, beginning of period | 66,087 | 135,826 | ||||||||||||
Cash, restricted cash and cash equivalents, end of period | $ | 72,498 | $ | 50,961 | ||||||||||
Reconciliation of cash and restricted cash reported within Condensed Consolidated Balance Sheets: | ||||||||||||||
Cash and cash equivalents, end of period | $ | 24,376 | $ | 29,310 | ||||||||||
Restricted cash and cash equivalents, end of period | 48,122 | 21,651 | ||||||||||||
Total cash, restricted cash and cash equivalents, end of period | $ | 72,498 | $ | 50,961 | ||||||||||
For the Three Months Ended September 30, 2022 | Diversified Reinsurance | AmTrust Reinsurance | Total | |||||||||||||||||||||||
Gross premiums written | $ | 6,185 | $ | (805) | $ | 5,380 | ||||||||||||||||||||
Net premiums written | $ | 6,027 | $ | (805) | $ | 5,222 | ||||||||||||||||||||
Net premiums earned | $ | 6,932 | $ | 5,319 | $ | 12,251 | ||||||||||||||||||||
Other insurance revenue | 368 | — | 368 | |||||||||||||||||||||||
Net loss and LAE | (1,965) | (15,461) | (17,426) | |||||||||||||||||||||||
Commission and other acquisition expenses | (3,394) | (2,004) | (5,398) | |||||||||||||||||||||||
General and administrative expenses | (1,901) | (521) | (2,422) | |||||||||||||||||||||||
Underwriting income (loss) | $ | 40 | $ | (12,667) | (12,627) | |||||||||||||||||||||
Reconciliation to net loss | ||||||||||||||||||||||||||
Net investment income and net realized and unrealized investment losses | 5,065 | |||||||||||||||||||||||||
Interest and amortization expenses | (4,833) | |||||||||||||||||||||||||
Foreign exchange and other gains, net | 8,586 | |||||||||||||||||||||||||
Other general and administrative expenses | (4,069) | |||||||||||||||||||||||||
Income tax benefit | 91 | |||||||||||||||||||||||||
Interest in loss of equity method investments | (373) | |||||||||||||||||||||||||
Net loss | $ | (8,160) | ||||||||||||||||||||||||
For the Three Months Ended September 30, 2017 | Diversified Reinsurance | AmTrust Reinsurance | Other | Total | ||||||||||||
Gross premiums written | $ | 210,953 | $ | 420,019 | $ | — | $ | 630,972 | ||||||||
Net premiums written | $ | 207,137 | $ | 410,193 | $ | — | $ | 617,330 | ||||||||
Net premiums earned | $ | 217,513 | $ | 436,353 | $ | — | $ | 653,866 | ||||||||
Other insurance revenue | 2,488 | — | — | 2,488 | ||||||||||||
Net loss and loss adjustment expense ("loss and LAE") | (172,273 | ) | (355,030 | ) | (8,665 | ) | (535,968 | ) | ||||||||
Commission and other acquisition expenses | (54,810 | ) | (138,650 | ) | (2 | ) | (193,462 | ) | ||||||||
General and administrative expenses | (8,595 | ) | (771 | ) | — | (9,366 | ) | |||||||||
Underwriting loss | $ | (15,677 | ) | $ | (58,098 | ) | $ | (8,667 | ) | (82,442 | ) | |||||
Reconciliation to net loss | ||||||||||||||||
Net investment income and net realized gains on investment | 46,682 | |||||||||||||||
Interest and amortization expenses | (4,829 | ) | ||||||||||||||
Amortization of intangible assets | (533 | ) | ||||||||||||||
Foreign exchange losses | (3,550 | ) | ||||||||||||||
Other general and administrative expenses | (10,126 | ) | ||||||||||||||
Income tax expense | (256 | ) | ||||||||||||||
Net loss | $ | (55,054 | ) | |||||||||||||
Net loss and LAE ratio(1) | 78.3 | % | 81.4 | % | 81.6 | % | ||||||||||
Commission and other acquisition expense ratio(2) | 24.9 | % | 31.7 | % | 29.5 | % | ||||||||||
General and administrative expense ratio(3) | 3.9 | % | 0.2 | % | 3.0 | % | ||||||||||
Expense ratio(4) | 28.8 | % | 31.9 | % | 32.5 | % | ||||||||||
Combined ratio(5) | 107.1 | % | 113.3 | % | 114.1 | % |
For the Three Months Ended September 30, 2021 | Diversified Reinsurance | AmTrust Reinsurance | Total | |||||||||||||||||||||||
Gross premiums written | $ | 5,684 | $ | 1,137 | $ | 6,821 | ||||||||||||||||||||
Net premiums written | $ | 5,816 | $ | 1,137 | $ | 6,953 | ||||||||||||||||||||
Net premiums earned | $ | 7,521 | $ | 7,509 | $ | 15,030 | ||||||||||||||||||||
Other insurance revenue | 138 | — | 138 | |||||||||||||||||||||||
Net loss and LAE | (554) | (9,960) | (10,514) | |||||||||||||||||||||||
Commission and other acquisition expenses | (3,461) | (2,852) | (6,313) | |||||||||||||||||||||||
General and administrative expenses | (1,583) | (407) | (1,990) | |||||||||||||||||||||||
Underwriting income (loss) | $ | 2,061 | $ | (5,710) | (3,649) | |||||||||||||||||||||
Reconciliation to net loss | ||||||||||||||||||||||||||
Net investment income and net realized and unrealized investment losses | 6,540 | |||||||||||||||||||||||||
Interest and amortization expenses | (4,832) | |||||||||||||||||||||||||
Foreign exchange and other gains, net | 4,116 | |||||||||||||||||||||||||
Other general and administrative expenses | (4,660) | |||||||||||||||||||||||||
Income tax benefit | 155 | |||||||||||||||||||||||||
Interest in loss from equity method investments | (810) | |||||||||||||||||||||||||
Net loss | $ | (3,140) | ||||||||||||||||||||||||
For the Nine Months Ended September 30, 2022 | Diversified Reinsurance | AmTrust Reinsurance | Total | |||||||||||||||||||||||
Gross premiums written | $ | 17,069 | $ | (18,520) | $ | (1,451) | ||||||||||||||||||||
Net premiums written | $ | 16,605 | $ | (18,520) | $ | (1,915) | ||||||||||||||||||||
Net premiums earned | $ | 20,012 | $ | 3,804 | $ | 23,816 | ||||||||||||||||||||
Other insurance revenue | 888 | — | 888 | |||||||||||||||||||||||
Net loss and LAE | (2,945) | (19,072) | (22,017) | |||||||||||||||||||||||
Commission and other acquisition expenses | (10,684) | (2,127) | (12,811) | |||||||||||||||||||||||
General and administrative expenses | (7,007) | (2,281) | (9,288) | |||||||||||||||||||||||
Underwriting income (loss) | $ | 264 | $ | (19,676) | (19,412) | |||||||||||||||||||||
Reconciliation to net loss | ||||||||||||||||||||||||||
Net investment income and net realized and unrealized investment gains | 23,719 | |||||||||||||||||||||||||
Interest and amortization expenses | (14,498) | |||||||||||||||||||||||||
Foreign exchange and other gains, net | 19,121 | |||||||||||||||||||||||||
Other general and administrative expenses | (15,383) | |||||||||||||||||||||||||
Income tax expense | (451) | |||||||||||||||||||||||||
Interest in loss from equity method investments | (2,143) | |||||||||||||||||||||||||
Net loss | $ | (9,047) | ||||||||||||||||||||||||
For the Three Months Ended September 30, 2016 | Diversified Reinsurance | AmTrust Reinsurance | Other | Total | ||||||||||||
Gross premiums written | $ | 186,750 | $ | 520,104 | $ | — | $ | 706,854 | ||||||||
Net premiums written | $ | 179,092 | $ | 511,561 | $ | — | $ | 690,653 | ||||||||
Net premiums earned | $ | 175,141 | $ | 523,137 | $ | — | $ | 698,278 | ||||||||
Other insurance revenue | 2,345 | — | — | 2,345 | ||||||||||||
Net loss and LAE | (132,396 | ) | (334,310 | ) | (45 | ) | (466,751 | ) | ||||||||
Commission and other acquisition expenses | (39,868 | ) | (166,836 | ) | (2 | ) | (206,706 | ) | ||||||||
General and administrative expenses | (9,038 | ) | (759 | ) | — | (9,797 | ) | |||||||||
Underwriting (loss) income | $ | (3,816 | ) | $ | 21,232 | $ | (47 | ) | 17,369 | |||||||
Reconciliation to net income | ||||||||||||||||
Net investment income and net realized gains on investment | 37,566 | |||||||||||||||
Interest and amortization expenses | (6,856 | ) | ||||||||||||||
Amortization of intangible assets | (616 | ) | ||||||||||||||
Foreign exchange gains | 687 | |||||||||||||||
Other general and administrative expenses | (7,155 | ) | ||||||||||||||
Income tax expense | (199 | ) | ||||||||||||||
Net income | $ | 40,796 | ||||||||||||||
Net loss and LAE ratio(1) | 74.6 | % | 63.9 | % | 66.6 | % | ||||||||||
Commission and other acquisition expense ratio(2) | 22.5 | % | 31.9 | % | 29.5 | % | ||||||||||
General and administrative expense ratio(3) | 5.1 | % | 0.1 | % | 2.4 | % | ||||||||||
Expense ratio(4) | 27.6 | % | 32.0 | % | 31.9 | % | ||||||||||
Combined ratio(5) | 102.2 | % | 95.9 | % | 98.5 | % |
For the Nine Months Ended September 30, 2021 | Diversified Reinsurance | AmTrust Reinsurance | Total | |||||||||||||||||||||||
Gross premiums written | $ | 10,947 | $ | (3,082) | $ | 7,865 | ||||||||||||||||||||
Net premiums written | $ | 10,600 | $ | (3,082) | $ | 7,518 | ||||||||||||||||||||
Net premiums earned | $ | 20,723 | $ | 19,383 | $ | 40,106 | ||||||||||||||||||||
Other insurance revenue | 946 | — | 946 | |||||||||||||||||||||||
Net loss and LAE | (3,216) | (4,330) | (7,546) | |||||||||||||||||||||||
Commission and other acquisition expenses | (11,668) | (7,486) | (19,154) | |||||||||||||||||||||||
General and administrative expenses | (6,190) | (1,785) | (7,975) | |||||||||||||||||||||||
Underwriting income | $ | 595 | $ | 5,782 | 6,377 | |||||||||||||||||||||
Reconciliation to net income | ||||||||||||||||||||||||||
Net investment income and net realized and unrealized investment gains | 32,609 | |||||||||||||||||||||||||
Interest and amortization expenses | (14,495) | |||||||||||||||||||||||||
Foreign exchange and other gains, net | 6,070 | |||||||||||||||||||||||||
Other general and administrative expenses | (21,578) | |||||||||||||||||||||||||
Income tax benefit | 363 | |||||||||||||||||||||||||
Interest in income from equity method investments | 4,912 | |||||||||||||||||||||||||
Net income | $ | 14,258 | ||||||||||||||||||||||||
September 30, 2022 | Diversified Reinsurance | AmTrust Reinsurance | Total | |||||||||||||||||
Total assets - reportable segments | $ | 96,068 | $ | 1,481,705 | $ | 1,577,773 | ||||||||||||||
Corporate assets | — | — | 411,841 | |||||||||||||||||
Total Assets | $ | 96,068 | $ | 1,481,705 | $ | 1,989,614 | ||||||||||||||
December 31, 2021 | Diversified Reinsurance | AmTrust Reinsurance | Total | |||||||||||||||||
Total assets - reportable segments | $ | 126,116 | $ | 1,810,940 | $ | 1,937,056 | ||||||||||||||
Corporate assets | — | — | 385,554 | |||||||||||||||||
Total Assets | $ | 126,116 | $ | 1,810,940 | $ | 2,322,610 |
For the Nine Months Ended September 30, 2017 | Diversified Reinsurance | AmTrust Reinsurance | Other | Total | ||||||||||||
Gross premiums written | $ | 683,839 | $ | 1,575,677 | $ | 81 | $ | 2,259,597 | ||||||||
Net premiums written | $ | 671,880 | $ | 1,529,980 | $ | 90 | $ | 2,201,950 | ||||||||
Net premiums earned | $ | 623,574 | $ | 1,450,811 | $ | 90 | $ | 2,074,475 | ||||||||
Other insurance revenue | 7,816 | — | — | 7,816 | ||||||||||||
Net loss and LAE | (487,759 | ) | (1,047,222 | ) | (10,176 | ) | (1,545,157 | ) | ||||||||
Commission and other acquisition expenses | (159,744 | ) | (465,789 | ) | 3 | (625,530 | ) | |||||||||
General and administrative expenses | (25,819 | ) | (2,240 | ) | — | (28,059 | ) | |||||||||
Underwriting loss | $ | (41,932 | ) | $ | (64,440 | ) | $ | (10,083 | ) | (116,455 | ) | |||||
Reconciliation to net loss | ||||||||||||||||
Net investment income and net realized gains on investment | 131,808 | |||||||||||||||
Interest and amortization expenses | (18,430 | ) | ||||||||||||||
Accelerated amortization of senior note issuance cost | (2,809 | ) | ||||||||||||||
Amortization of intangible assets | (1,599 | ) | ||||||||||||||
Foreign exchange losses | (12,193 | ) | ||||||||||||||
Other general and administrative expenses | (24,193 | ) | ||||||||||||||
Income tax expense | (1,017 | ) | ||||||||||||||
Net loss | $ | (44,888 | ) | |||||||||||||
Net loss and LAE ratio(1) | 77.2 | % | 72.2 | % | 74.2 | % | ||||||||||
Commission and other acquisition expense ratio(2) | 25.3 | % | 32.1 | % | 30.0 | % | ||||||||||
General and administrative expense ratio(3) | 4.1 | % | 0.1 | % | 2.5 | % | ||||||||||
Expense ratio(4) | 29.4 | % | 32.2 | % | 32.5 | % | ||||||||||
Combined ratio(5) | 106.6 | % | 104.4 | % | 106.7 | % |
For the Nine Months Ended September 30, 2016 | Diversified Reinsurance | AmTrust Reinsurance | Other | Total | ||||||||||||
Gross premiums written | $ | 667,388 | $ | 1,591,902 | $ | — | $ | 2,259,290 | ||||||||
Net premiums written | $ | 626,522 | $ | 1,507,389 | $ | — | $ | 2,133,911 | ||||||||
Net premiums earned | $ | 538,152 | $ | 1,413,699 | $ | — | $ | 1,951,851 | ||||||||
Other insurance revenue | 8,696 | — | — | 8,696 | ||||||||||||
Net loss and LAE | (395,718 | ) | (898,703 | ) | (2,940 | ) | (1,297,361 | ) | ||||||||
Commission and other acquisition expenses | (139,895 | ) | (447,604 | ) | (2 | ) | (587,501 | ) | ||||||||
General and administrative expenses | (26,717 | ) | (2,308 | ) | — | (29,025 | ) | |||||||||
Underwriting (loss) income | $ | (15,482 | ) | $ | 65,084 | $ | (2,942 | ) | 46,660 | |||||||
Reconciliation to net income | ||||||||||||||||
Net investment income and net realized gains on investment | 111,802 | |||||||||||||||
Interest and amortization expenses | (21,314 | ) | ||||||||||||||
Accelerated amortization of senior note issuance cost | (2,345 | ) | ||||||||||||||
Amortization of intangible assets | (1,846 | ) | ||||||||||||||
Foreign exchange gains | 6,474 | |||||||||||||||
Other general and administrative expenses | (20,713 | ) | ||||||||||||||
Income tax expense | (1,206 | ) | ||||||||||||||
Net income | $ | 117,512 | ||||||||||||||
Net loss and LAE ratio(1) | 72.4 | % | 63.5 | % | 66.2 | % | ||||||||||
Commission and other acquisition expense ratio(2) | 25.6 | % | 31.7 | % | 30.0 | % | ||||||||||
General and administrative expense ratio(3) | 4.8 | % | 0.2 | % | 2.5 | % | ||||||||||
Expense ratio(4) | 30.4 | % | 31.9 | % | 32.5 | % | ||||||||||
Combined ratio(5) | 102.8 | % | 95.4 | % | 98.7 | % |
September 30, 2017 | Diversified Reinsurance | AmTrust Reinsurance | Total | |||||||||
Total assets - reportable segments | $ | 1,898,036 | $ | 4,362,008 | $ | 6,260,044 | ||||||
Corporate assets | — | — | 579,053 | |||||||||
Total Assets | $ | 1,898,036 | $ | 4,362,008 | $ | 6,839,097 | ||||||
December 31, 2016 | Diversified Reinsurance | AmTrust Reinsurance | Total | |||||||||
Total assets - reportable segments | $ | 1,787,320 | $ | 3,900,067 | $ | 5,687,387 | ||||||
Corporate assets | — | — | 564,912 | |||||||||
Total Assets | $ | 1,787,320 | $ | 3,900,067 | $ | 6,252,299 |
For the Three Months Ended September 30, | 2022 | 2021 | ||||||||||||||||||||||||
Net premiums written | Total | Total | ||||||||||||||||||||||||
Diversified Reinsurance | ||||||||||||||||||||||||||
International | $ | 6,027 | $ | 5,816 | ||||||||||||||||||||||
Total Diversified Reinsurance | 6,027 | 5,816 | ||||||||||||||||||||||||
AmTrust Reinsurance | ||||||||||||||||||||||||||
Small Commercial Business | (636) | (1,309) | ||||||||||||||||||||||||
Specialty Program | (43) | 22 | ||||||||||||||||||||||||
Specialty Risk and Extended Warranty | (126) | 2,424 | ||||||||||||||||||||||||
Total AmTrust Reinsurance | (805) | 1,137 | ||||||||||||||||||||||||
Total Net Premiums Written | $ | 5,222 | $ | 6,953 | ||||||||||||||||||||||
For the Nine Months Ended September 30, | 2022 | 2021 | ||||||||||||||||||||||||
Net premiums written | Total | Total | ||||||||||||||||||||||||
Diversified Reinsurance | ||||||||||||||||||||||||||
International | $ | 16,605 | $ | 10,600 | ||||||||||||||||||||||
Total Diversified Reinsurance | 16,605 | 10,600 | ||||||||||||||||||||||||
AmTrust Reinsurance | ||||||||||||||||||||||||||
Small Commercial Business | (15,007) | (5,381) | ||||||||||||||||||||||||
Specialty Program | 732 | (7) | ||||||||||||||||||||||||
Specialty Risk and Extended Warranty | (4,245) | 2,306 | ||||||||||||||||||||||||
Total AmTrust Reinsurance | (18,520) | (3,082) | ||||||||||||||||||||||||
Total Net Premiums Written | $ | (1,915) | $ | 7,518 |
For the Three Months Ended September 30, | 2017 | 2016 | ||||||||||||
Total | % of Total | Total | % of Total | |||||||||||
Net premiums written | ||||||||||||||
Diversified Reinsurance | ||||||||||||||
Property | $ | 37,962 | 6.2 | % | $ | 30,606 | 4.4 | % | ||||||
Casualty | 129,726 | 21.0 | % | 115,360 | 16.7 | % | ||||||||
Accident and Health | 16,946 | 2.7 | % | 14,845 | 2.2 | % | ||||||||
International | 22,503 | 3.7 | % | 18,281 | 2.6 | % | ||||||||
Total Diversified Reinsurance | 207,137 | 33.6 | % | 179,092 | 25.9 | % | ||||||||
AmTrust Reinsurance | ||||||||||||||
Small Commercial Business | 295,499 | 47.9 | % | 314,677 | 45.6 | % | ||||||||
Specialty Program | 63,816 | 10.3 | % | 98,895 | 14.3 | % | ||||||||
Specialty Risk and Extended Warranty | 50,878 | 8.2 | % | 97,989 | 14.2 | % | ||||||||
Total AmTrust Reinsurance | 410,193 | 66.4 | % | 511,561 | 74.1 | % | ||||||||
Total Net Premiums Written | $ | 617,330 | 100.0 | % | $ | 690,653 | 100.0 | % |
For the Nine Months Ended September 30, | 2017 | 2016 | ||||||||||||
Total | % of Total | Total | % of Total | |||||||||||
Net premiums written | ||||||||||||||
Diversified Reinsurance | ||||||||||||||
Property | $ | 132,398 | 6.0 | % | $ | 123,991 | 5.8 | % | ||||||
Casualty | 391,503 | 17.8 | % | 365,332 | 17.1 | % | ||||||||
Accident and Health | 74,504 | 3.4 | % | 68,140 | 3.2 | % | ||||||||
International | 73,475 | 3.3 | % | 69,059 | 3.2 | % | ||||||||
Total Diversified Reinsurance | 671,880 | 30.5 | % | 626,522 | 29.3 | % | ||||||||
AmTrust Reinsurance | ||||||||||||||
Small Commercial Business | 1,028,905 | 46.7 | % | 983,601 | 46.1 | % | ||||||||
Specialty Program | 255,767 | 11.6 | % | 268,193 | 12.6 | % | ||||||||
Specialty Risk and Extended Warranty | 245,308 | 11.2 | % | 255,595 | 12.0 | % | ||||||||
Total AmTrust Reinsurance | 1,529,980 | 69.5 | % | 1,507,389 | 70.7 | % | ||||||||
Other | 90 | — | % | — | — | % | ||||||||
Total Net Premiums Written | $ | 2,201,950 | 100.0 | % | $ | 2,133,911 | 100.0 | % |
For the Three Months Ended September 30, | 2022 | 2021 | ||||||||||||||||||||||||
Net premiums earned | Total | % of Total | Total | % of Total | ||||||||||||||||||||||
Diversified Reinsurance | ||||||||||||||||||||||||||
International | $ | 6,932 | 56.6 | % | $ | 7,521 | 50.0 | % | ||||||||||||||||||
Total Diversified Reinsurance | 6,932 | 56.6 | % | 7,521 | 50.0 | % | ||||||||||||||||||||
AmTrust Reinsurance | ||||||||||||||||||||||||||
Small Commercial Business | (636) | (5.2) | % | (1,227) | (8.1) | % | ||||||||||||||||||||
Specialty Program | (43) | (0.4) | % | 28 | 0.2 | % | ||||||||||||||||||||
Specialty Risk and Extended Warranty | 5,998 | 49.0 | % | 8,708 | 57.9 | % | ||||||||||||||||||||
Total AmTrust Reinsurance | 5,319 | 43.4 | % | 7,509 | 50.0 | % | ||||||||||||||||||||
Total Net Premiums Earned | $ | 12,251 | 100.0 | % | $ | 15,030 | 100.0 | % | ||||||||||||||||||
For the Nine Months Ended September 30, | 2022 | 2021 | ||||||||||||||||||||||||
Net premiums earned | Total | % of Total | Total | % of Total | ||||||||||||||||||||||
Diversified Reinsurance | ||||||||||||||||||||||||||
International | $ | 20,012 | 84.0 | % | $ | 20,723 | 51.7 | % | ||||||||||||||||||
Total Diversified Reinsurance | 20,012 | 84.0 | % | 20,723 | 51.7 | % | ||||||||||||||||||||
AmTrust Reinsurance | ||||||||||||||||||||||||||
Small Commercial Business | (14,995) | (63.0) | % | (5,073) | (12.6) | % | ||||||||||||||||||||
Specialty Program | 733 | 3.1 | % | 12 | — | % | ||||||||||||||||||||
Specialty Risk and Extended Warranty | 18,066 | 75.9 | % | 24,444 | 60.9 | % | ||||||||||||||||||||
Total AmTrust Reinsurance | 3,804 | 16.0 | % | 19,383 | 48.3 | % | ||||||||||||||||||||
Total Net Premiums Earned | $ | 23,816 | 100.0 | % | $ | 40,106 | 100.0 | % |
For the Three Months Ended September 30, | 2017 | 2016 | ||||||||||||
Total | % of Total | Total | % of Total | |||||||||||
Net premiums earned | ||||||||||||||
Diversified Reinsurance | ||||||||||||||
Property | $ | 43,362 | 6.6 | % | $ | 29,921 | 4.3 | % | ||||||
Casualty | 130,428 | 20.0 | % | 105,893 | 15.2 | % | ||||||||
Accident and Health | 22,780 | 3.5 | % | 18,436 | 2.6 | % | ||||||||
International | 20,943 | 3.2 | % | 20,891 | 3.0 | % | ||||||||
Total Diversified Reinsurance | 217,513 | 33.3 | % | 175,141 | 25.1 | % | ||||||||
AmTrust Reinsurance | ||||||||||||||
Small Commercial Business | 314,773 | 48.1 | % | 320,596 | 45.9 | % | ||||||||
Specialty Program | 59,143 | 9.1 | % | 89,856 | 12.9 | % | ||||||||
Specialty Risk and Extended Warranty | 62,437 | 9.5 | % | 112,685 | 16.1 | % | ||||||||
Total AmTrust Reinsurance | 436,353 | 66.7 | % | 523,137 | 74.9 | % | ||||||||
Total Net Premiums Earned | $ | 653,866 | 100.0 | % | $ | 698,278 | 100.0 | % |
For the Nine Months Ended September 30, | 2017 | 2016 | ||||||||||||
Total | % of Total | Total | % of Total | |||||||||||
Net premiums earned | ||||||||||||||
Diversified Reinsurance | ||||||||||||||
Property | $ | 122,888 | 5.9 | % | $ | 103,023 | 5.3 | % | ||||||
Casualty | 375,141 | 18.1 | % | 313,736 | 16.1 | % | ||||||||
Accident and Health | 63,878 | 3.1 | % | 55,788 | 2.8 | % | ||||||||
International | 61,667 | 3.0 | % | 65,605 | 3.4 | % | ||||||||
Total Diversified Reinsurance | 623,574 | 30.1 | % | 538,152 | 27.6 | % | ||||||||
AmTrust Reinsurance | ||||||||||||||
Small Commercial Business | 946,782 | 45.6 | % | 864,699 | 44.3 | % | ||||||||
Specialty Program | 251,153 | 12.1 | % | 251,543 | 12.9 | % | ||||||||
Specialty Risk and Extended Warranty | 252,876 | 12.2 | % | 297,457 | 15.2 | % | ||||||||
Total AmTrust Reinsurance | 1,450,811 | 69.9 | % | 1,413,699 | 72.4 | % | ||||||||
Other | 90 | — | % | — | — | % | ||||||||
Total Net Premiums Earned | $ | 2,074,475 | 100.0 | % | $ | 1,951,851 | 100.0 | % |
September 30, 2022 | Original or amortized cost | Gross unrealized gains | Gross unrealized losses | Fair value | ||||||||||||||||||||||
U.S. treasury bonds | $ | 58,464 | $ | — | $ | (241) | $ | 58,223 | ||||||||||||||||||
U.S. agency bonds – mortgage-backed | 73,874 | — | (7,682) | 66,192 | ||||||||||||||||||||||
Collateralized mortgage-backed securities | 7,199 | — | (397) | 6,802 | ||||||||||||||||||||||
Non-U.S. government bonds | 12,586 | — | (1,605) | 10,981 | ||||||||||||||||||||||
Collateralized loan obligations | 175,047 | — | (30,514) | 144,533 | ||||||||||||||||||||||
Corporate bonds | 105,144 | — | (19,902) | 85,242 | ||||||||||||||||||||||
Total fixed maturity investments | $ | 432,314 | $ | — | $ | (60,341) | $ | 371,973 |
September 30, 2017 | Original or amortized cost | Gross unrealized gains | Gross unrealized losses | Fair value | ||||||||||||
Available-for-sale ("AFS") fixed maturities : | ||||||||||||||||
U.S. treasury bonds | $ | 5,194 | $ | 150 | $ | (8 | ) | $ | 5,336 | |||||||
U.S. agency bonds – mortgage-backed | 2,004,645 | 14,208 | (12,451 | ) | 2,006,402 | |||||||||||
Non-U.S. government and supranational bonds | 33,392 | 216 | (2,012 | ) | 31,596 | |||||||||||
Asset-backed securities | 257,969 | 4,456 | (164 | ) | 262,261 | |||||||||||
Corporate bonds | 1,541,296 | 52,717 | (17,624 | ) | 1,576,389 | |||||||||||
Municipal bonds | 2,500 | 103 | — | 2,603 | ||||||||||||
Total AFS fixed maturities | 3,844,996 | 71,850 | (32,259 | ) | 3,884,587 | |||||||||||
Held-to-maturity ("HTM") fixed maturities: | ||||||||||||||||
Corporate bonds | 1,057,943 | 34,027 | (748 | ) | 1,091,222 | |||||||||||
Municipal bonds | 60,425 | 459 | — | 60,884 | ||||||||||||
Total HTM fixed maturities | 1,118,368 | 34,486 | (748 | ) | 1,152,106 | |||||||||||
Other investments | 5,640 | 1,401 | — | 7,041 | ||||||||||||
Total investments | $ | 4,969,004 | $ | 107,737 | $ | (33,007 | ) | $ | 5,043,734 |
December 31, 2016 | Original or amortized cost | Gross unrealized gains | Gross unrealized losses | Fair value | ||||||||||||
AFS fixed maturities: | ||||||||||||||||
U.S. treasury bonds | $ | 5,186 | $ | 238 | $ | (11 | ) | $ | 5,413 | |||||||
U.S. agency bonds – mortgage-backed | 1,720,436 | 12,867 | (17,265 | ) | 1,716,038 | |||||||||||
U.S. agency bonds – other | 18,082 | 20 | — | 18,102 | ||||||||||||
Non-U.S. government and supranational bonds | 35,158 | 73 | (5,297 | ) | 29,934 | |||||||||||
Asset-backed securities | 217,232 | 3,713 | (69 | ) | 220,876 | |||||||||||
Corporate bonds | 1,947,347 | 30,951 | (62,093 | ) | 1,916,205 | |||||||||||
Municipal bonds | 62,201 | 2,897 | — | 65,098 | ||||||||||||
Total AFS fixed maturities | 4,005,642 | 50,759 | (84,735 | ) | 3,971,666 | |||||||||||
HTM fixed maturities: | ||||||||||||||||
Corporate bonds | 752,212 | 16,370 | (2,447 | ) | 766,135 | |||||||||||
Total HTM fixed maturities | 752,212 | 16,370 | (2,447 | ) | 766,135 | |||||||||||
Other investments | 10,057 | 3,003 | — | 13,060 | ||||||||||||
Total investments | $ | 4,767,911 | $ | 70,132 | $ | (87,182 | ) | $ | 4,750,861 |
December 31, 2021 | Original or amortized cost | Gross unrealized gains | Gross unrealized losses | Fair value | ||||||||||||||||||||||
U.S. treasury bonds | $ | 59,989 | $ | — | $ | (110) | $ | 59,879 | ||||||||||||||||||
U.S. agency bonds – mortgage-backed | 96,554 | 2,429 | (193) | 98,790 | ||||||||||||||||||||||
Collateralized mortgage-backed securities | 14,972 | 565 | — | 15,537 | ||||||||||||||||||||||
Non-U.S. government bonds | 3,163 | 113 | — | 3,276 | ||||||||||||||||||||||
Collateralized loan obligations | 183,974 | 140 | (5,093) | 179,021 | ||||||||||||||||||||||
Corporate bonds | 236,692 | 10,094 | (6,144) | 240,642 | ||||||||||||||||||||||
Total fixed maturity investments | $ | 595,344 | $ | 13,341 | $ | (11,540) | $ | 597,145 |
September 30, 2022 | Amortized cost | Fair value | ||||||||||||||||||||||||
Due in one year or less | $ | 65,624 | $ | 64,525 | ||||||||||||||||||||||
Due after one year through five years | 92,969 | 77,117 | ||||||||||||||||||||||||
Due after five years through ten years | 17,601 | 12,804 | ||||||||||||||||||||||||
176,194 | 154,446 | |||||||||||||||||||||||||
U.S. agency bonds – mortgage-backed | 73,874 | 66,192 | ||||||||||||||||||||||||
Collateralized mortgage-backed securities | 7,199 | 6,802 | ||||||||||||||||||||||||
Collateralized loan obligations | 175,047 | 144,533 | ||||||||||||||||||||||||
Total fixed maturity investments | $ | 432,314 | $ | 371,973 |
AFS fixed maturities | HTM fixed maturities | |||||||||||||||
September 30, 2017 | Amortized cost | Fair value | Amortized cost | Fair value | ||||||||||||
Maturity | ||||||||||||||||
Due in one year or less | $ | 40,440 | $ | 38,784 | $ | 49,293 | $ | 49,298 | ||||||||
Due after one year through five years | 577,760 | 583,569 | 335,922 | 346,747 | ||||||||||||
Due after five years through ten years | 961,682 | 990,968 | 723,297 | 746,131 | ||||||||||||
Due after ten years | 2,500 | 2,603 | 9,856 | 9,930 | ||||||||||||
1,582,382 | 1,615,924 | 1,118,368 | 1,152,106 | |||||||||||||
U.S. agency bonds – mortgage-backed | 2,004,645 | 2,006,402 | — | — | ||||||||||||
Asset-backed securities | 257,969 | 262,261 | — | — | ||||||||||||
Total fixed maturities | $ | 3,844,996 | $ | 3,884,587 | $ | 1,118,368 | $ | 1,152,106 |
Less than 12 Months | 12 Months or More | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Less than 12 Months | 12 Months or More | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
September 30, 2017 | Fair value | Unrealized losses | Fair value | Unrealized losses | Fair value | Unrealized losses | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fixed maturities | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
September 30, 2022 | September 30, 2022 | Fair value | Unrealized losses | Fair value | Unrealized losses | Fair value | Unrealized losses | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. treasury bonds | $ | — | $ | — | $ | 592 | $ | (8 | ) | $ | 592 | $ | (8 | ) | U.S. treasury bonds | $ | 58,076 | $ | (239) | $ | 147 | $ | (2) | $ | 58,223 | $ | (241) | |||||||||||||||||||||||||||||||||||
U.S. agency bonds – mortgage-backed | 700,173 | (5,545 | ) | 390,211 | (6,906 | ) | 1,090,384 | (12,451 | ) | U.S. agency bonds – mortgage-backed | 63,136 | (6,982) | 3,056 | (700) | 66,192 | (7,682) | ||||||||||||||||||||||||||||||||||||||||||||||
Non–U.S. government and supranational bonds | 12,678 | (1,116 | ) | 15,132 | (896 | ) | 27,810 | (2,012 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Asset-backed securities | 21,499 | (105 | ) | 3,323 | (59 | ) | 24,822 | (164 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Collateralized mortgage-backed securities | Collateralized mortgage-backed securities | 6,802 | (397) | — | — | 6,802 | (397) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Non-U.S. government bonds | Non-U.S. government bonds | 10,981 | (1,605) | — | — | 10,981 | (1,605) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Collateralized loan obligations | Collateralized loan obligations | 63,813 | (6,602) | 80,720 | (23,912) | 144,533 | (30,514) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate bonds | 152,959 | (4,437 | ) | 262,782 | (13,935 | ) | 415,741 | (18,372 | ) | Corporate bonds | 63,739 | (11,718) | 21,503 | (8,184) | 85,242 | (19,902) | ||||||||||||||||||||||||||||||||||||||||||||||
Total temporarily impaired fixed maturities | $ | 887,309 | $ | (11,203 | ) | $ | 672,040 | $ | (21,804 | ) | $ | 1,559,349 | $ | (33,007 | ) | Total temporarily impaired fixed maturities | $ | 266,547 | $ | (27,543) | $ | 105,426 | $ | (32,798) | $ | 371,973 | $ | (60,341) |
Less than 12 Months | 12 Months or More | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Less than 12 Months | 12 Months or More | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2016 | Fair value | Unrealized losses | Fair value | Unrealized losses | Fair value | Unrealized losses | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fixed maturities | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2021 | December 31, 2021 | Fair value | Unrealized losses | Fair value | Unrealized losses | Fair value | Unrealized losses | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. treasury bonds | $ | 589 | $ | (11 | ) | $ | — | $ | — | $ | 589 | $ | (11 | ) | U.S. treasury bonds | $ | 59,879 | $ | (110) | $ | — | $ | — | $ | 59,879 | $ | (110) | |||||||||||||||||||||||||||||||||||
U.S. agency bonds – mortgage-backed | 997,943 | (14,440 | ) | 47,969 | (2,825 | ) | 1,045,912 | (17,265 | ) | U.S. agency bonds – mortgage-backed | 4,415 | (193) | — | — | 4,415 | (193) | ||||||||||||||||||||||||||||||||||||||||||||||
Non-U.S. government and supranational bonds | 3,169 | (160 | ) | 25,236 | (5,137 | ) | 28,405 | (5,297 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Asset-backed securities | 30,589 | (69 | ) | — | — | 30,589 | (69 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Collateralized loan obligations | Collateralized loan obligations | 117,148 | (5,057) | 5,064 | (36) | 122,212 | (5,093) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate bonds | 642,599 | (15,058 | ) | 357,954 | (49,482 | ) | 1,000,553 | (64,540 | ) | Corporate bonds | 38,537 | (2,775) | 27,852 | (3,369) | 66,389 | (6,144) | ||||||||||||||||||||||||||||||||||||||||||||||
Total temporarily impaired fixed maturities | $ | 1,674,889 | $ | (29,738 | ) | $ | 431,159 | $ | (57,444 | ) | $ | 2,106,048 | $ | (87,182 | ) | Total temporarily impaired fixed maturities | $ | 219,979 | $ | (8,135) | $ | 32,916 | $ | (3,405) | $ | 252,895 | $ | (11,540) |
Ratings(1) at September 30, 2017 | Amortized cost | Fair value | % of Total fair value | ||||||||
U.S. treasury bonds | $ | 5,194 | $ | 5,336 | 0.1 | % | |||||
U.S. agency bonds | 2,004,645 | 2,006,402 | 39.8 | % | |||||||
AAA | 169,514 | 173,589 | 3.4 | % | |||||||
AA+, AA, AA- | 238,268 | 244,507 | 4.9 | % | |||||||
A+, A, A- | 1,395,001 | 1,421,504 | 28.3 | % | |||||||
BBB+, BBB, BBB- | 1,093,491 | 1,125,119 | 22.3 | % | |||||||
BB+ or lower | 57,251 | 60,236 | 1.2 | % | |||||||
Total fixed maturities | $ | 4,963,364 | $ | 5,036,693 | 100.0 | % |
Ratings(1) at December 31, 2016 | Amortized cost | Fair value | % of Total fair value | ||||||||
U.S. treasury bonds | $ | 5,186 | $ | 5,413 | 0.1 | % | |||||
U.S. agency bonds | 1,738,518 | 1,734,140 | 36.6 | % | |||||||
AAA | 170,515 | 171,090 | 3.6 | % | |||||||
AA+, AA, AA- | 238,315 | 237,169 | 5.0 | % | |||||||
A+, A, A- | 1,386,023 | 1,374,860 | 29.0 | % | |||||||
BBB+, BBB, BBB- | 1,053,529 | 1,047,376 | 22.2 | % | |||||||
BB+ or lower | 165,768 | 167,753 | 3.5 | % | |||||||
Total fixed maturities | $ | 4,757,854 | $ | 4,737,801 | 100.0 | % |
September 30, 2017 | December 31, 2016 | |||||||||||||
Fair value | % of Total fair value | Fair value | % of Total fair value | |||||||||||
Investment in limited partnerships | $ | 5,541 | 78.7 | % | $ | 5,474 | 41.9 | % | ||||||
Investment in quoted equity | — | — | % | 6,586 | 50.4 | % | ||||||||
Other | 1,500 | 21.3 | % | 1,000 | 7.7 | % | ||||||||
Total other investments | $ | 7,041 | 100.0 | % | $ | 13,060 | 100.0 | % |
September 30, 2022 | Amortized cost | Fair value | % of Total fair value | |||||||||||||||||
U.S. treasury bonds | $ | 58,464 | $ | 58,223 | 15.6 | % | ||||||||||||||
U.S. agency bonds | 73,874 | 66,192 | 17.8 | % | ||||||||||||||||
AAA | 147,990 | 119,653 | 32.2 | % | ||||||||||||||||
AA+, AA, AA- | 44,766 | 40,812 | 11.0 | % | ||||||||||||||||
A+, A, A- | 46,912 | 37,616 | 10.1 | % | ||||||||||||||||
BBB+, BBB, BBB- | 54,535 | 45,066 | 12.1 | % | ||||||||||||||||
BB+ or lower | 5,773 | 4,411 | 1.2 | % | ||||||||||||||||
Total fixed maturities (1) | $ | 432,314 | $ | 371,973 | 100.0 | % |
December 31, 2021 | Amortized cost | Fair value | % of Total fair value | |||||||||||||||||
U.S. treasury bonds | $ | 59,989 | $ | 59,879 | 10.0 | % | ||||||||||||||
U.S. agency bonds | 96,554 | 98,790 | 16.6 | % | ||||||||||||||||
AAA | 161,179 | 156,706 | 26.2 | % | ||||||||||||||||
AA+, AA, AA- | 38,999 | 39,140 | 6.6 | % | ||||||||||||||||
A+, A, A- | 99,748 | 99,962 | 16.7 | % | ||||||||||||||||
BBB+, BBB, BBB- | 126,770 | 129,618 | 21.7 | % | ||||||||||||||||
BB+ or lower | 12,105 | 13,050 | 2.2 | % | ||||||||||||||||
Total fixed maturities(1) | $ | 595,344 | $ | 597,145 | 100.0 | % |
September 30, 2022 | December 31, 2021 | |||||||||||||||||||||||||
Carrying value | % of Total | Carrying value | % of Total | |||||||||||||||||||||||
Private equity funds | $ | 31,777 | 22.6 | % | $ | 23,324 | 19.8 | % | ||||||||||||||||||
Private credit funds | 24,129 | 17.1 | % | 20,922 | 17.8 | % | ||||||||||||||||||||
Other privately held investments | 32,115 | 22.8 | % | 30,500 | 25.9 | % | ||||||||||||||||||||
Total other investments at fair value | 88,021 | 62.5 | % | 74,746 | 63.5 | % | ||||||||||||||||||||
Investments in direct lending entities (at cost) | 52,783 | 37.5 | % | 42,976 | 36.5 | % | ||||||||||||||||||||
Total other investments | $ | 140,804 | 100.0 | % | $ | 117,722 | 100.0 | % |
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | |||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
Fixed maturities | $ | 40,369 | $ | 35,769 | $ | 123,849 | $ | 108,018 | ||||||||
Cash and cash equivalents | 899 | 506 | 1,328 | 1,147 | ||||||||||||
Loan to related party | 913 | 599 | 2,441 | 1,729 | ||||||||||||
Other | 569 | 572 | 1,460 | 1,519 | ||||||||||||
42,750 | 37,446 | 129,078 | 112,413 | |||||||||||||
Investment expenses | (1,927 | ) | (1,780 | ) | (5,586 | ) | (5,122 | ) | ||||||||
Net investment income | $ | 40,823 | $ | 35,666 | $ | 123,492 | $ | 107,291 |
September 30, 2022 | December 31, 2021 | |||||||||||||||||||||||||
Cost | Fair Value | Cost | Fair Value | |||||||||||||||||||||||
Privately held equity securities | $ | 38,260 | $ | 42,002 | $ | 22,756 | $ | 22,829 | ||||||||||||||||||
Publicly traded equity securities | 559 | 598 | 559 | 1,174 | ||||||||||||||||||||||
Total equity securities | $ | 38,819 | $ | 42,600 | $ | 23,315 | $ | 24,003 |
September 30, 2022 | December 31, 2021 | |||||||||||||||||||||||||
Carrying Value | % of Total | Carrying Value | % of Total | |||||||||||||||||||||||
Real estate investments | $ | 44,925 | 56.0 | % | $ | 44,050 | 52.6 | % | ||||||||||||||||||
Hedge fund investments | 15,447 | 19.3 | % | 32,929 | 39.3 | % | ||||||||||||||||||||
Other investments | 19,793 | 24.7 | % | 6,763 | 8.1 | % | ||||||||||||||||||||
Total equity method investments | $ | 80,165 | 100.0 | % | $ | 83,742 | 100.0 | % |
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | |||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||
Fixed maturities | $ | 2,259 | $ | 4,449 | $ | 7,074 | $ | 15,535 | ||||||||||||||||||
Income on funds withheld | 2,616 | 2,708 | 8,753 | 7,928 | ||||||||||||||||||||||
Interest income from loan to related party | 1,771 | 885 | 3,808 | 2,611 | ||||||||||||||||||||||
Cash and cash equivalents and other investments | 930 | 377 | 2,292 | 613 | ||||||||||||||||||||||
7,576 | 8,419 | 21,927 | 26,687 | |||||||||||||||||||||||
Investment expenses | (939) | (942) | (1,056) | (2,091) | ||||||||||||||||||||||
Net investment income | $ | 6,637 | $ | 7,477 | $ | 20,871 | $ | 24,596 |
For the Three Months Ended September 30, 2017 | Gross gains | Gross losses | Net | |||||||||
AFS fixed maturities | $ | 1,366 | $ | (997 | ) | $ | 369 | |||||
Other investments | 5,490 | — | 5,490 | |||||||||
Net realized gains on investment | $ | 6,856 | $ | (997 | ) | $ | 5,859 | |||||
For the Three Months Ended September 30, 2016 | Gross gains | Gross losses | Net | |||||||||
AFS fixed maturities | $ | 1,813 | $ | — | $ | 1,813 | ||||||
Other investments | 87 | — | 87 | |||||||||
Net realized gains on investment | $ | 1,900 | $ | — | $ | 1,900 | ||||||
For the Nine Months Ended September 30, 2017 | Gross gains | Gross losses | Net | |||||||||
AFS fixed maturities | $ | 3,854 | $ | (1,253 | ) | $ | 2,601 | |||||
Other investments | 5,715 | — | 5,715 | |||||||||
Net realized gains on investment | $ | 9,569 | $ | (1,253 | ) | $ | 8,316 | |||||
For the Nine Months Ended September 30, 2016 | Gross gains | Gross losses | Net | |||||||||
AFS fixed maturities | $ | 4,953 | $ | (891 | ) | $ | 4,062 | |||||
Other investments | 449 | — | 449 | |||||||||
Net realized gains on investment | $ | 5,402 | $ | (891 | ) | $ | 4,511 |
September 30, 2017 | December 31, 2016 | |||||||
Fixed maturities | $ | 47,888 | $ | (23,635 | ) | |||
Other investments | 1,401 | 3,003 | ||||||
Total net unrealized gains (losses) | 49,289 | (20,632 | ) | |||||
Deferred income tax | (79 | ) | (84 | ) | ||||
Net unrealized gains (losses), net of deferred income tax | $ | 49,210 | $ | (20,716 | ) | |||
Change, net of deferred income tax | $ | 69,926 |
For the Three Months Ended September 30, 2022 | Gross gains | Gross losses | Net | |||||||||||||||||
Fixed maturities | $ | 591 | $ | (495) | $ | 96 | ||||||||||||||
Equity securities | 217 | (63) | 154 | |||||||||||||||||
Other investments | 393 | (2,215) | (1,822) | |||||||||||||||||
Net realized and unrealized investment gains (losses) | $ | 1,201 | $ | (2,773) | $ | (1,572) | ||||||||||||||
For the Three Months Ended September 30, 2021 | Gross gains | Gross losses | Net | |||||||||||||||||
Fixed maturities | $ | 1,890 | $ | (99) | $ | 1,791 | ||||||||||||||
Equity securities | 106 | (3,001) | (2,895) | |||||||||||||||||
Other investments | 297 | (130) | 167 | |||||||||||||||||
Net realized and unrealized investment gains (losses) | $ | 2,293 | $ | (3,230) | $ | (937) | ||||||||||||||
For the Nine Months Ended September 30, 2022 | Gross gains | Gross losses | Net | |||||||||||||||||
Fixed maturities | $ | 1,829 | $ | (637) | $ | 1,192 | ||||||||||||||
Equity securities | 3,876 | (875) | 3,001 | |||||||||||||||||
Other investments | 2,825 | (4,170) | (1,345) | |||||||||||||||||
Net realized and unrealized investment gains (losses) | $ | 8,530 | $ | (5,682) | $ | 2,848 | ||||||||||||||
For the Nine Months Ended September 30, 2021 | Gross gains | Gross losses | Net | |||||||||||||||||
Fixed maturities | $ | 6,137 | $ | (343) | $ | 5,794 | ||||||||||||||
Equity securities | 5,168 | (3,638) | 1,530 | |||||||||||||||||
Other investments | 838 | (149) | 689 | |||||||||||||||||
Net realized and unrealized investment gains (losses) | $ | 12,143 | $ | (4,130) | $ | 8,013 |
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | |||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||
Net gains (losses) recognized for equity securities | $ | 154 | $ | (2,895) | $ | 3,001 | $ | 1,530 | ||||||||||||||||||
Net gains recognized for equity securities divested | — | — | — | (441) | ||||||||||||||||||||||
Unrealized gains (losses) recognized for equity securities still held at reporting date | $ | 154 | $ | (2,895) | $ | 3,001 | $ | 1,089 |
September 30, 2022 | December 31, 2021 | |||||||||||||
Fixed maturity investments | $ | (60,341) | $ | 1,801 | ||||||||||
Equity method investments | — | (4,414) | ||||||||||||
Total net unrealized losses | (60,341) | (2,613) | ||||||||||||
Deferred income tax | 216 | (80) | ||||||||||||
Net unrealized losses, net of deferred income tax | $ | (60,125) | $ | (2,693) | ||||||||||
Change, net of deferred income tax | $ | (57,432) | $ | (52,050) |
September 30, 2017 | December 31, 2016 | |||||||
Restricted cash – third party agreements | $ | 80,999 | $ | 56,891 | ||||
Restricted cash – related party agreements | 50,467 | 46,777 | ||||||
Restricted cash – U.S. state regulatory authorities | 132 | 120 | ||||||
Total restricted cash | 131,598 | 103,788 | ||||||
Restricted investments – in trust for third party agreements at fair value (Amortized cost: 2017 – $1,337,185; 2016 – $1,307,926) | 1,354,548 | 1,299,569 | ||||||
Restricted investments AFS– in trust for related party agreements at fair value (Amortized cost: 2017 – $2,193,678; 2016 – $2,242,565) | 2,218,382 | 2,225,066 | ||||||
Restricted investments HTM– in trust for related party agreements at fair value (Amortized cost: 2017 – $1,118,368; 2016 – $752,212) | 1,152,106 | 766,135 | ||||||
Restricted investments – in trust for U.S. state regulatory authorities (Amortized cost: 2017 – $4,071; 2016 – $4,059) | 4,188 | 4,238 | ||||||
Total restricted investments | 4,729,224 | 4,295,008 | ||||||
Total restricted cash and investments | $ | 4,860,822 | $ | 4,398,796 |
September 30, 2022 | December 31, 2021 | |||||||||||||
Restricted cash – third party agreements | $ | 15,297 | $ | 19,177 | ||||||||||
Restricted cash – related party agreements | 32,825 | 20,242 | ||||||||||||
Total restricted cash | 48,122 | 39,419 | ||||||||||||
Restricted investments – in trust for third party agreements at fair value (amortized cost: 2022 – $50,394; 2021 – $48,860) | 50,235 | 48,845 | ||||||||||||
Restricted investments – in trust for related party agreements at fair value (amortized cost: 2022 – $327,148; 2021 – $493,128) | 274,103 | 493,883 | ||||||||||||
Total restricted investments | 324,338 | 542,728 | ||||||||||||
Total restricted cash and investments | $ | 372,460 | $ | 582,147 |
September 30, 2017 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Fair Value Based on NAV Practical Expedient | Total Fair Value | |||||||||||||||
AFS fixed maturities | ||||||||||||||||||||
U.S. treasury bonds | $ | 5,336 | $ | — | $ | — | $ | — | $ | 5,336 | ||||||||||
U.S. agency bonds – mortgage-backed | — | 2,006,402 | — | — | 2,006,402 | |||||||||||||||
Non-U.S. government and supranational bonds | — | 31,596 | — | — | 31,596 | |||||||||||||||
Asset-backed securities | — | 262,261 | — | — | 262,261 | |||||||||||||||
Corporate bonds | — | 1,576,389 | — | — | 1,576,389 | |||||||||||||||
Municipal bonds | — | 2,603 | — | — | 2,603 | |||||||||||||||
Other investments | — | — | 1,500 | 5,541 | 7,041 | |||||||||||||||
Total | $ | 5,336 | $ | 3,879,251 | $ | 1,500 | $ | 5,541 | $ | 3,891,628 | ||||||||||
As a percentage of total assets | 0.1 | % | 56.7 | % | — | % | 0.1 | % | 56.9 | % |
December 31, 2016 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Fair Value Based on NAV Practical Expedient | Total Fair Value | |||||||||||||||
AFS fixed maturities | ||||||||||||||||||||
U.S. treasury bonds | $ | 5,413 | $ | — | $ | — | $ | — | $ | 5,413 | ||||||||||
U.S. agency bonds – mortgage-backed | — | 1,716,038 | — | — | 1,716,038 | |||||||||||||||
U.S. agency bonds – other | — | 18,102 | — | — | 18,102 | |||||||||||||||
Non-U.S. government and supranational bonds | — | 29,934 | — | — | 29,934 | |||||||||||||||
Asset-backed securities | — | 220,876 | — | — | 220,876 | |||||||||||||||
Corporate bonds | — | 1,916,205 | — | — | 1,916,205 | |||||||||||||||
Municipal bonds | — | 65,098 | — | — | 65,098 | |||||||||||||||
Other investments | 6,586 | — | 1,000 | 5,474 | 13,060 | |||||||||||||||
Total | $ | 11,999 | $ | 3,966,253 | $ | 1,000 | $ | 5,474 | $ | 3,984,726 | ||||||||||
As a percentage of total assets | 0.2 | % | 63.4 | % | — | % | 0.1 | % | 63.7 | % |
September 30, 2022 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Fair Value Based on NAV Practical Expedient | Total Fair Value | |||||||||||||||||||||||||||
Fixed maturities | ||||||||||||||||||||||||||||||||
U.S. treasury bonds | $ | 58,223 | $ | — | $ | — | $ | — | $ | 58,223 | ||||||||||||||||||||||
U.S. agency bonds – mortgage-backed | — | 66,192 | — | — | 66,192 | |||||||||||||||||||||||||||
Collateralized mortgage-backed bonds | — | 6,802 | — | — | 6,802 | |||||||||||||||||||||||||||
Non-U.S. government bonds | — | 10,981 | — | — | 10,981 | |||||||||||||||||||||||||||
Collateralized loan obligations | — | 144,533 | — | — | 144,533 | |||||||||||||||||||||||||||
Corporate bonds | — | 85,242 | — | — | 85,242 | |||||||||||||||||||||||||||
Equity securities | 598 | — | 17,305 | 24,697 | 42,600 | |||||||||||||||||||||||||||
Other investments | — | — | — | 88,021 | 88,021 | |||||||||||||||||||||||||||
Total investments | $ | 58,821 | $ | 313,750 | $ | 17,305 | $ | 112,718 | $ | 502,594 | ||||||||||||||||||||||
As a percentage of total assets | 3.0% | 15.8% | 0.9% | 5.7% | 25.4% | |||||||||||||||||||||||||||
Derivative liability on retroactive reinsurance | $ | — | $ | — | $ | 9,035 | $ | — | $ | 9,035 |
December 31, 2021 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Fair Value Based on NAV Practical Expedient | Total Fair Value | |||||||||||||||||||||||||||
Fixed maturities | ||||||||||||||||||||||||||||||||
U.S. treasury bonds | $ | 59,879 | $ | — | $ | — | $ | — | $ | 59,879 | ||||||||||||||||||||||
U.S. agency bonds – mortgage-backed | — | 98,790 | — | — | 98,790 | |||||||||||||||||||||||||||
Collateralized mortgage-backed bonds | — | 15,537 | — | — | 15,537 | |||||||||||||||||||||||||||
Non-U.S. government bonds | — | 3,276 | — | — | 3,276 | |||||||||||||||||||||||||||
Collateralized loan obligations | — | 179,021 | — | — | 179,021 | |||||||||||||||||||||||||||
Corporate bonds | — | 240,642 | — | — | 240,642 | |||||||||||||||||||||||||||
Equity securities | 1,174 | — | 5,094 | 17,735 | 24,003 | |||||||||||||||||||||||||||
Other investments | — | — | 1,000 | 73,746 | 74,746 | |||||||||||||||||||||||||||
Total investments | $ | 61,053 | $ | 537,266 | $ | 6,094 | $ | 91,481 | $ | 695,894 | ||||||||||||||||||||||
As a percentage of total assets | 2.6% | 23.1% | 0.3% | 3.9% | 29.9% |
Fair Value | Valuation Technique | Unobservable Inputs | Range | |||||||||||||||||||||||||||||
Private equity investments | $ | 6,860 | Quarterly financial statements | Estimated maturity dates | 1.0 years | to | 3.0 years | |||||||||||||||||||||||||
Others including start-ups | 10,445 | Recent market transactions | Liquidity discount rates | |||||||||||||||||||||||||||||
Total Level 3 investments | $ | 17,305 | ||||||||||||||||||||||||||||||
Derivative liability on retroactive reinsurance | $ | 9,035 | Discounted cash flows | Duration matched discount rates | 2.0% | to | 3.0% |
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | |||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||
Balance - beginning of period | $ | 15,194 | $ | 6,094 | $ | 6,094 | $ | 2,844 | ||||||||||||||||||
Sales | — | — | (1,000) | — | ||||||||||||||||||||||
Net unrealized gains | 111 | — | 3,770 | — | ||||||||||||||||||||||
Purchases | 2,000 | — | 8,441 | 4,250 | ||||||||||||||||||||||
Transfers out of Level 3 | — | — | — | (1,000) | ||||||||||||||||||||||
Total Level 3 investments - end of period | $ | 17,305 | $ | 6,094 | $ | 17,305 | $ | 6,094 |
September 30, 2022 | December 31, 2021 | |||||||||||||||||||||||||
Carrying Value | Fair Value | Carrying Value | Fair Value | |||||||||||||||||||||||
Senior Notes - MHLA – 6.625% | $ | 110,000 | $ | 66,880 | $ | 110,000 | $ | 94,820 | ||||||||||||||||||
Senior Notes - MHNC – 7.75% | 152,500 | 108,885 | 152,500 | 140,300 | ||||||||||||||||||||||
Total Senior Notes | $ | 262,500 | $ | 175,765 | $ | 262,500 | $ | 235,120 |
For the Three Months Ended September 30, 2021 | For the Nine Months Ended September 30, 2022 | For the Nine Months Ended September 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Number of shares purchased | Average price of shares purchased | Number of shares purchased | Average price of shares purchased | Number of shares purchased | Average price of shares purchased | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Series A | 135,353 | $ | 13.51 | 435,639 | $ | 5.27 | 3,519,093 | $ | 14.74 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Series C | 241,466 | 13.42 | 625,742 | 7.08 | 2,917,244 | 14.44 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Series D | 181,817 | 13.34 | 520,128 | 6.26 | 2,639,336 | 14.45 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | 558,636 | 13.42 | 1,581,509 | 6.31 | 9,075,673 | 14.56 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total price paid | $ | 7,495 | $ | 9,983 | $ | 132,153 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gain on purchase | $ | 6,004 | $ | 28,233 | $ | 87,168 |
As of September 30, 2022 | Series A | Series C | Series D | Total | ||||||||||||||||||||||
Outstanding shares issued by Maiden Holdings | 6,000,000 | 6,600,000 | 6,000,000 | 18,600,000 | ||||||||||||||||||||||
Less: Total shares held by Maiden Reinsurance | 4,499,950 | 4,855,972 | 4,457,194 | 13,813,116 | ||||||||||||||||||||||
Total shares held by non-affiliates | 1,500,050 | 1,744,028 | 1,542,806 | 4,786,884 | ||||||||||||||||||||||
Percentage held by Maiden Reinsurance | 75.0 | % | 73.6 | % | 74.3 | % | 74.3 | % |
September 30, 2017 | December 31, 2016 | |||||||||||||||
Carrying Value | Fair Value | Carrying Value | Fair Value | |||||||||||||
Financial Assets | ||||||||||||||||
HTM – corporate bonds | $ | 1,057,943 | $ | 1,091,222 | $ | 752,212 | $ | 766,135 | ||||||||
HTM – municipal bonds | 60,425 | 60,884 | — | — | ||||||||||||
Total financial assets | $ | 1,118,368 | $ | 1,152,106 | $ | 752,212 | $ | 766,135 | ||||||||
Financial Liabilities | ||||||||||||||||
Senior Notes - MHLA – 6.625% | $ | 110,000 | $ | 117,040 | $ | 110,000 | $ | 111,452 | ||||||||
Senior Notes - MHNC – 7.75% | 152,500 | 159,600 | 152,500 | 164,700 | ||||||||||||
Senior Notes - MHNB – 8.00%(1) | — | — | 100,000 | 101,600 | ||||||||||||
Total financial liabilities | $ | 262,500 | $ | 276,640 | $ | 362,500 | $ | 377,752 |
September 30, 2017 | 2016 Senior Notes | 2013 Senior Notes | 2012 Senior Notes | Total | ||||||||||||
Principal amount | $ | 110,000 | $ | 152,500 | $ | — | $ | 262,500 | ||||||||
Less: unamortized issuance costs | 3,664 | 4,406 | — | 8,070 | ||||||||||||
Carrying value | $ | 106,336 | $ | 148,094 | $ | — | $ | 254,430 | ||||||||
December 31, 2016 | 2016 Senior Notes | 2013 Senior Notes | 2012 Senior Notes | Total | ||||||||||||
Principal amount | $ | 110,000 | $ | 152,500 | $ | 100,000 | $ | 362,500 | ||||||||
Less: unamortized issuance costs | 3,694 | 4,532 | 2,865 | 11,091 | ||||||||||||
Carrying value | $ | 106,306 | $ | 147,968 | $ | 97,135 | $ | 351,409 | ||||||||
Other details: | ||||||||||||||||
Original debt issuance costs | $ | 3,715 | $ | 5,054 | $ | 3,406 | ||||||||||
Maturity date | June 14, 2046 | Dec 1, 2043 | Mar 27, 2042 | |||||||||||||
Earliest redeemable date (for cash) | June 14, 2021 | Dec 1, 2018 | Mar 27, 2017 | |||||||||||||
Coupon rate | 6.625 | % | 7.75 | % | 8.00 | % | ||||||||||
Effective interest rate | 7.07 | % | 8.04 | % | 8.31 | % |
For the Three Months Ended September 30, 2022 | Change in net unrealized gains on investment | Foreign currency translation | Total | |||||||||||||||||
Beginning balance | $ | (45,266) | $ | 6,326 | $ | (38,940) | ||||||||||||||
Other comprehensive (loss) income before reclassifications | (14,811) | 2,246 | (12,565) | |||||||||||||||||
Amounts reclassified from AOCI to net income, net of tax | (48) | — | (48) | |||||||||||||||||
Net current period other comprehensive (loss) income | (14,859) | 2,246 | (12,613) | |||||||||||||||||
Ending balance, Maiden shareholders | $ | (60,125) | $ | 8,572 | $ | (51,553) | ||||||||||||||
For the Three Months Ended September 30, 2021 | Change in net unrealized gains on investment | Foreign currency translation | Total | |||||||||||||||||
Beginning balance | $ | 23,632 | $ | (17,909) | $ | 5,723 | ||||||||||||||
Other comprehensive (loss) income before reclassifications | (14,611) | 6,036 | (8,575) | |||||||||||||||||
Amounts reclassified from AOCI to net income, net of tax | (2,007) | — | (2,007) | |||||||||||||||||
Net current period other comprehensive (loss) income | (16,618) | 6,036 | (10,582) | |||||||||||||||||
Ending balance, Maiden shareholders | $ | 7,014 | $ | (11,873) | $ | (4,859) | ||||||||||||||
For the Nine Months Ended September 30, 2022 | Change in net unrealized gains on investment | Foreign currency translation | Total | |||||||||||||||||
Beginning balance | $ | (2,693) | $ | (9,522) | $ | (12,215) | ||||||||||||||
Other comprehensive (loss) income before reclassifications | (51,736) | 18,094 | (33,642) | |||||||||||||||||
Amounts reclassified from AOCI to net income, net of tax | (5,696) | — | (5,696) | |||||||||||||||||
Net current period other comprehensive (loss) income | (57,432) | 18,094 | (39,338) | |||||||||||||||||
Ending balance, Maiden shareholders | $ | (60,125) | $ | 8,572 | $ | (51,553) | ||||||||||||||
For the Nine Months Ended September 30, 2021 | Change in net unrealized gains on investment | Foreign currency translation | Total | |||||||||||||||||
Beginning balance | $ | 49,357 | $ | (25,500) | $ | 23,857 | ||||||||||||||
Other comprehensive (loss) income before reclassifications | (35,311) | 13,627 | (21,684) | |||||||||||||||||
Amounts reclassified from AOCI to net income, net of tax | (7,032) | — | (7,032) | |||||||||||||||||
Net current period other comprehensive (loss) income | (42,343) | 13,627 | (28,716) | |||||||||||||||||
Ending balance, Maiden shareholders | $ | 7,014 | $ | (11,873) | $ | (4,859) |
September 30, 2022 | 2016 Senior Notes | 2013 Senior Notes | Total | |||||||||||||||||
Principal amount | $ | 110,000 | $ | 152,500 | $ | 262,500 | ||||||||||||||
Less: unamortized issuance costs | 3,420 | 3,564 | 6,984 | |||||||||||||||||
Carrying value | $ | 106,580 | $ | 148,936 | $ | 255,516 | ||||||||||||||
December 31, 2021 | 2016 Senior Notes | 2013 Senior Notes | Total | |||||||||||||||||
Principal amount | $ | 110,000 | $ | 152,500 | $ | 262,500 | ||||||||||||||
Less: unamortized issuance costs | 3,463 | 3,690 | 7,153 | |||||||||||||||||
Carrying value | $ | 106,537 | $ | 148,810 | $ | 255,347 | ||||||||||||||
Other details: | ||||||||||||||||||||
Original debt issuance costs | $ | 3,715 | $ | 5,054 | ||||||||||||||||
Maturity date | June 14, 2046 | December 1, 2043 | ||||||||||||||||||
Earliest redeemable date (for cash) | June 14, 2021 | December 1, 2018 | ||||||||||||||||||
Coupon rate | 6.625 | % | 7.75 | % | ||||||||||||||||
Effective interest rate | 7.07 | % | 8.04 | % |
For the Nine Months Ended September 30, | 2022 | 2021 | ||||||||||||
Premiums written | ||||||||||||||
Direct | $ | 17,383 | $ | 16,181 | ||||||||||
Assumed | (18,834) | (8,316) | ||||||||||||
Ceded | (464) | (347) | ||||||||||||
Net | $ | (1,915) | $ | 7,518 | ||||||||||
Premiums earned | ||||||||||||||
Direct | $ | 17,332 | $ | 17,186 | ||||||||||
Assumed | 6,942 | 24,103 | ||||||||||||
Ceded | (458) | (1,183) | ||||||||||||
Net | $ | 23,816 | $ | 40,106 | ||||||||||
Loss and LAE | ||||||||||||||
Gross loss and LAE | $ | 22,511 | $ | 6,132 | ||||||||||
Loss and LAE ceded | (494) | 1,414 | ||||||||||||
Net | $ | 22,017 | $ | 7,546 |
September 30, 2017 | December 31, 2016 | |||||||
Reserve for reported loss and LAE | $ | 1,898,474 | $ | 1,617,956 | ||||
Reserve for losses incurred but not reported ("IBNR") | 1,466,537 | 1,278,540 | ||||||
Reserve for loss and LAE | $ | 3,365,011 | $ | 2,896,496 |
For the Nine Months Ended September 30, | 2017 | 2016 | ||||||
Gross loss and LAE reserves, January 1 | $ | 2,896,496 | $ | 2,510,101 | ||||
Less: reinsurance recoverable on unpaid losses, January 1 | 99,936 | 71,248 | ||||||
Net loss and LAE reserves, January 1 | 2,796,560 | 2,438,853 | ||||||
Net incurred losses related to: | ||||||||
Current year | 1,394,623 | 1,255,493 | ||||||
Prior years | 150,534 | 41,868 | ||||||
1,545,157 | 1,297,361 | |||||||
Net paid losses related to: | ||||||||
Current year | (400,908 | ) | (356,135 | ) | ||||
Prior years | (765,049 | ) | (722,395 | ) | ||||
(1,165,957 | ) | (1,078,530 | ) | |||||
Effect of foreign exchange movements | 48,622 | 4,764 | ||||||
Net loss and LAE reserves, September 30 | 3,224,382 | 2,662,448 | ||||||
Reinsurance recoverable on unpaid losses, September 30 | 140,629 | 97,070 | ||||||
Gross loss and LAE reserves, September 30 | $ | 3,365,011 | $ | 2,759,518 |
September 30, 2022 | December 31, 2021 | |||||||||||||
Reserve for reported loss and LAE | $ | 692,881 | $ | 851,950 | ||||||||||
Reserve for losses incurred but not reported ("IBNR") | 453,203 | 637,423 | ||||||||||||
Reserve for loss and LAE | $ | 1,146,084 | $ | 1,489,373 |
For the Nine Months Ended September 30, | 2022 | 2021 | ||||||||||||
Gross loss and LAE reserves, January 1 | $ | 1,489,373 | $ | 1,893,299 | ||||||||||
Less: reinsurance recoverable on unpaid losses, January 1 | 562,845 | 592,571 | ||||||||||||
Net loss and LAE reserves, January 1 | 926,528 | 1,300,728 | ||||||||||||
Net incurred losses related to: | ||||||||||||||
Current year | 27,510 | 31,259 | ||||||||||||
Prior years | (5,493) | (23,713) | ||||||||||||
22,017 | 7,546 | |||||||||||||
Net paid losses related to: | ||||||||||||||
Current year | (334) | (17,137) | ||||||||||||
Prior years | (319,132) | (288,202) | ||||||||||||
(319,466) | (305,339) | |||||||||||||
Change in deferred gain on retroactive reinsurance | 12,024 | 24,296 | ||||||||||||
Assumed retroactive reinsurance business | 7,580 | — | ||||||||||||
Effect of foreign exchange rate movements | (50,574) | (21,332) | ||||||||||||
Net loss and LAE reserves, September 30 | 598,109 | 1,005,899 | ||||||||||||
Reinsurance recoverable on unpaid losses, September 30 | 547,975 | 561,627 | ||||||||||||
Gross loss and LAE reserves, September 30 | $ | 1,146,084 | $ | 1,567,526 |
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | |||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||
Gross and net premiums written | $ | (805) | $ | 1,137 | $ | (18,520) | $ | (3,082) | ||||||||||||||||||
Net premiums earned | 5,319 | 7,509 | 3,804 | 19,383 | ||||||||||||||||||||||
Net loss and LAE | (15,461) | (9,960) | (19,072) | (4,330) | ||||||||||||||||||||||
Commission and other acquisition expenses | (2,004) | (2,852) | (2,127) | (7,486) |
September 30, 2022 | December 31, 2021 | |||||||||||||||||||||||||
Fair Value | % of Total | Fair Value | % of Total | |||||||||||||||||||||||
Private equity funds | $ | 56,767 | 74.3 | % | $ | 46,149 | 67.6 | % | ||||||||||||||||||
Private credit funds | 14,981 | 19.6 | % | 4,897 | 7.2 | % | ||||||||||||||||||||
Investments in direct lending entities | 3,304 | 4.3 | % | 13,216 | 19.4 | % | ||||||||||||||||||||
Other privately held investments | 1,385 | 1.8 | % | 4,000 | 5.8 | % | ||||||||||||||||||||
Total unfunded commitments on other investments | $ | 76,437 | 100.0 | % | $ | 68,262 | 100.0 | % |
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | |||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||
Numerator: | ||||||||||||||||||||||||||
Net (loss) income | $ | (8,160) | $ | (3,140) | $ | (9,047) | $ | 14,258 | ||||||||||||||||||
Gain from repurchase of preference shares - Series A, C and D | — | 6,004 | 28,233 | 87,168 | ||||||||||||||||||||||
Amount allocated to participating common shareholders(1) | — | (17) | (109) | (1,017) | ||||||||||||||||||||||
Net (loss) income allocated to Maiden common shareholders | $ | (8,160) | $ | 2,847 | $ | 19,077 | $ | 100,409 | ||||||||||||||||||
Denominator: | ||||||||||||||||||||||||||
Weighted average number of common shares – basic | 87,161,499 | 86,433,780 | 86,935,823 | 85,937,012 | ||||||||||||||||||||||
Potentially dilutive securities: | ||||||||||||||||||||||||||
Share options and restricted share units(2) | — | 4,452 | 1,729 | 4,406 | ||||||||||||||||||||||
Adjusted weighted average number of common shares – diluted(2) | 87,161,499 | 86,438,232 | 86,937,552 | 85,941,418 | ||||||||||||||||||||||
Basic and diluted (loss) earnings per share attributable to common shareholders | $ | (0.09) | $ | 0.03 | $ | 0.22 | $ | 1.17 | ||||||||||||||||||
For the Three Months Ended September 30, | 2017 | 2016 | ||||||
Numerator: | ||||||||
Net (loss) income attributable to Maiden | $ | (55,051 | ) | $ | 40,852 | |||
Dividends on preference shares – Series A, C and D | (8,545 | ) | (6,032 | ) | ||||
Dividends on convertible preference shares – Series B | — | (2,991 | ) | |||||
Amount allocated to participating common shareholders(1) | (6 | ) | (19 | ) | ||||
Numerator for basic EPS - net (loss) income allocated to Maiden common shareholders | (63,602 | ) | 31,810 | |||||
Potentially dilutive securities: | ||||||||
Dividends on convertible preference shares – Series B(2) | — | 2,991 | ||||||
Numerator for diluted EPS - net (loss) income allocated to Maiden common shareholders after assumed conversion | $ | (63,602 | ) | $ | 34,801 | |||
Denominator: | ||||||||
Weighted average number of common shares – basic | 85,859,201 | 75,993,451 | ||||||
Potentially dilutive securities: | ||||||||
Share options and restricted share units | — | 1,100,206 | ||||||
Convertible preference shares(2) | — | 9,057,294 | ||||||
Adjusted weighted average number of common shares and assumed conversions – diluted | 85,859,201 | 86,150,951 | ||||||
Basic (loss) earnings per share attributable to Maiden common shareholders: | $ | (0.74 | ) | $ | 0.42 | |||
Diluted (loss) earnings per share attributable to Maiden common shareholders: | $ | (0.74 | ) | $ | 0.40 | |||
For the Nine Months Ended September 30, | 2017 | 2016 | ||||||
Numerator: | ||||||||
Net (loss) income attributable to Maiden | $ | (44,854 | ) | $ | 117,678 | |||
Dividends on preference shares – Series A, C and D | (20,611 | ) | (18,752 | ) | ||||
Dividends on convertible preference shares – Series B | — | (8,971 | ) | |||||
Amount allocated to participating common shareholders(1) | (17 | ) | (55 | ) | ||||
Numerator for basic EPS - net (loss) income allocated to Maiden common shareholders | (65,482 | ) | 89,900 | |||||
Potentially dilutive securities: | ||||||||
Dividends on convertible preference shares – Series B(2) | — | 8,971 | ||||||
Numerator for diluted EPS - net (loss) income allocated to Maiden common shareholders after assumed conversion | $ | (65,482 | ) | $ | 98,871 | |||
Denominator: | ||||||||
Weighted average number of common shares – basic | 86,256,481 | 74,625,839 | ||||||
Potentially dilutive securities: | ||||||||
Share options and restricted share units | — | 1,085,740 | ||||||
Convertible preference shares(2) | — | 10,306,440 | ||||||
Adjusted weighted average number of common shares and assumed conversions – diluted | 86,256,481 | 86,018,019 | ||||||
Basic (loss) earnings per share attributable to Maiden common shareholders: | $ | (0.76 | ) | $ | 1.20 | |||
Diluted (loss) earnings per share attributable to Maiden common shareholders: | $ | (0.76 | ) | $ | 1.15 |
For the Three Months Ended September 30, 2017 | Change in net unrealized gains on investment | Foreign currency translation adjustments | Total | |||||||||
Beginning balance | $ | 27,866 | $ | 7,629 | $ | 35,495 | ||||||
Other comprehensive income (loss) before reclassifications | 24,994 | (10,828 | ) | 14,166 | ||||||||
Amounts reclassified from AOCI to net income, net of tax | (3,650 | ) | — | (3,650 | ) | |||||||
Net current period other comprehensive income (loss) | 21,344 | (10,828 | ) | 10,516 | ||||||||
Ending balance | 49,210 | (3,199 | ) | 46,011 | ||||||||
Less: AOCI attributable to noncontrolling interest | — | (68 | ) | (68 | ) | |||||||
Ending balance, Maiden shareholders | $ | 49,210 | $ | (3,131 | ) | $ | 46,079 | |||||
For the Three Months Ended September 30, 2016 | Change in net unrealized gains on investment | Foreign currency translation adjustments | Total | |||||||||
Beginning balance | $ | 93,793 | $ | 25,034 | $ | 118,827 | ||||||
Other comprehensive income (loss) before reclassifications | 8,899 | (2,730 | ) | 6,169 | ||||||||
Amounts reclassified from AOCI to net income, net of tax | (1,202 | ) | — | (1,202 | ) | |||||||
Net current period other comprehensive income (loss) | 7,697 | (2,730 | ) | 4,967 | ||||||||
Ending balance | 101,490 | 22,304 | 123,794 | |||||||||
Less: AOCI attributable to noncontrolling interest | — | (82 | ) | (82 | ) | |||||||
Ending balance, Maiden shareholders | $ | 101,490 | $ | 22,386 | $ | 123,876 | ||||||
For the Nine Months Ended September 30, 2017 | Change in net unrealized gains on investment | Foreign currency translation adjustments | Total | |||||||||
Beginning balance | $ | (20,716 | ) | $ | 35,604 | $ | 14,888 | |||||
Other comprehensive income (loss) before reclassifications | 68,803 | (38,803 | ) | 30,000 | ||||||||
Amounts reclassified from AOCI to net income, net of tax | 1,123 | — | 1,123 | |||||||||
Net current period other comprehensive income (loss) | 69,926 | (38,803 | ) | 31,123 | ||||||||
Ending balance | 49,210 | (3,199 | ) | 46,011 | ||||||||
Less: AOCI attributable to noncontrolling interest | — | (68 | ) | (68 | ) | |||||||
Ending balance, Maiden shareholders | $ | 49,210 | $ | (3,131 | ) | $ | 46,079 | |||||
For the Nine Months Ended September 30, 2016 | Change in net unrealized gains on investment | Foreign currency translation adjustments | Total | |||||||||
Beginning balance | $ | (54,112 | ) | $ | 30,231 | $ | (23,881 | ) | ||||
Other comprehensive income (loss) before reclassifications | 155,024 | (7,927 | ) | 147,097 | ||||||||
Amounts reclassified from AOCI to net income, net of tax | 578 | — | 578 | |||||||||
Net current period other comprehensive income (loss) | 155,602 | (7,927 | ) | 147,675 | ||||||||
Ending balance | 101,490 | 22,304 | 123,794 | |||||||||
Less: AOCI attributable to noncontrolling interest | — | (82 | ) | (82 | ) | |||||||
Ending balance, Maiden shareholders | $ | 101,490 | $ | 22,386 | $ | 123,876 |
Dividend per Share | Payable on: | Record date: | ||||||
Common shares | $ | 0.15 | January 16, 2018 | January 2, 2018 | ||||
Preference shares - Series A | $ | 0.515625 | December 15, 2017 | December 1, 2017 | ||||
Preference shares - Series C | $ | 0.445313 | December 15, 2017 | December 1, 2017 | ||||
Preference shares - Series D | $ | 0.418750 | December 15, 2017 | December 1, 2017 |
For the Three Months Ended September 30, | 2022 | 2021 | Change | |||||||||||||||||
Summary Consolidated Statement of Income Data (unaudited): | ($ in thousands except per share data) | |||||||||||||||||||
Net loss | $ | (8,160) | $ | (3,140) | $ | (5,020) | ||||||||||||||
Gain from repurchase of preference shares | — | 6,004 | (6,004) | |||||||||||||||||
Net (loss) income attributable to Maiden common shareholders | (8,160) | 2,864 | (11,024) | |||||||||||||||||
Basic and diluted earnings per common share: | ||||||||||||||||||||
Net (loss) income attributable to common shareholders(2) | (0.09) | 0.03 | (0.12) | |||||||||||||||||
Gain from repurchase of preference securities per common share | — | 0.07 | (0.07) | |||||||||||||||||
Gross premiums written | 5,380 | 6,821 | (1,441) | |||||||||||||||||
Net premiums earned | 12,251 | 15,030 | (2,779) | |||||||||||||||||
Underwriting loss(3) | (12,627) | (3,649) | (8,978) | |||||||||||||||||
Net investment results(13) | 4,692 | 5,730 | (1,038) | |||||||||||||||||
Non-GAAP measures: | ||||||||||||||||||||
Non-GAAP operating loss(1) | (21,060) | (3,114) | (17,946) | |||||||||||||||||
Non-GAAP basic and diluted operating loss per common share(1) | (0.24) | (0.04) | (0.20) | |||||||||||||||||
Annualized non-GAAP operating return on average common shareholders' equity(1) | (32.6) | % | (4.5) | % | (28.1) | |||||||||||||||
For the Nine Months Ended September 30, | 2022 | 2021 | Change | |||||||||||||||||
Summary Consolidated Statement of Income Data (unaudited): | ($ in thousands except per share data) | |||||||||||||||||||
Net (loss) income | $ | (9,047) | $ | 14,258 | $ | (23,305) | ||||||||||||||
Gain from repurchase of preference shares | 28,233 | 87,168 | (58,935) | |||||||||||||||||
Net income attributable to Maiden common shareholders | 19,186 | 101,426 | (82,240) | |||||||||||||||||
Basic and diluted earnings per common share: | ||||||||||||||||||||
Net income attributable to Maiden common shareholders(2) | 0.22 | 1.17 | (0.95) | |||||||||||||||||
Gain from repurchase of preference shares per common share | 0.32 | 1.01 | (0.69) | |||||||||||||||||
Gross premiums written | (1,451) | 7,865 | (9,316) | |||||||||||||||||
Net premiums earned | 23,816 | 40,106 | (16,290) | |||||||||||||||||
Underwriting (loss) income(3) | (19,412) | 6,377 | (25,789) | |||||||||||||||||
Net investment results(13) | 21,576 | 37,521 | (15,945) | |||||||||||||||||
Non-GAAP measures: | ||||||||||||||||||||
Non-GAAP operating (loss) earnings(1) | (11,362) | 58,135 | (69,497) | |||||||||||||||||
Non-GAAP basic and diluted operating (loss) earnings per common share(1) | (0.13) | 0.67 | (0.80) | |||||||||||||||||
Annualized non-GAAP operating return on average common shareholders' equity(1) | (5.9) | % | 32.3 | % | (38.2) |
For the Three Months Ended September 30, | 2017 | 2016 | Change | |||||||||
Summary Consolidated Statement of Income Data: | ($ in thousands except per share data) | |||||||||||
Net (loss) income | $ | (55,054 | ) | $ | 40,796 | $ | (95,850 | ) | ||||
Net (loss) income attributable to Maiden common shareholders | (63,596 | ) | 31,829 | (95,425 | ) | |||||||
Non-GAAP operating (loss) earnings(1) | (56,414 | ) | 30,196 | (86,610 | ) | |||||||
Basic (loss) earnings per common share: | ||||||||||||
Net (loss) income attributable to Maiden common shareholders(2) | (0.74 | ) | 0.42 | (1.16 | ) | |||||||
Non-GAAP operating (loss) earnings attributable to Maiden common shareholders(1) | (0.66 | ) | 0.40 | (1.06 | ) | |||||||
Diluted (loss) earnings per common share: | ||||||||||||
Net (loss) income attributable to Maiden common shareholders(2) (9) | (0.74 | ) | 0.40 | (1.14 | ) | |||||||
Non-GAAP operating (loss) earnings attributable to Maiden common shareholders(1) (9) | (0.66 | ) | 0.39 | (1.05 | ) | |||||||
Dividends per common share | 0.15 | 0.14 | 0.01 | |||||||||
Gross premiums written | 630,972 | 706,854 | (75,882 | ) | ||||||||
Net premiums earned | 653,866 | 698,278 | (44,412 | ) | ||||||||
Underwriting (loss) income(3) | (82,442 | ) | 17,369 | (99,811 | ) | |||||||
Net investment income | 40,823 | 35,666 | 5,157 | |||||||||
Combined ratio(4) | 114.1 | % | 98.5 | % | 15.6 | |||||||
Annualized non-GAAP operating return on average common shareholders' equity(1) | (22.5 | )% | 11.0 | % | (33.5 | ) | ||||||
For the Nine Months Ended September 30, | 2017 | 2016 | Change | |||||||||
Summary Consolidated Statement of Income Data: | ($ in thousands except per share data) | |||||||||||
Net (loss) income | $ | (44,888 | ) | $ | 117,512 | $ | (162,400 | ) | ||||
Net (loss) income attributable to Maiden common shareholders | (65,465 | ) | 89,955 | (155,420 | ) | |||||||
Non-GAAP operating (loss) earnings(1) | (46,226 | ) | 86,974 | (133,200 | ) | |||||||
Basic (loss) earnings per common share: | ||||||||||||
Net (loss) income attributable to Maiden common shareholders(2) | (0.76 | ) | 1.20 | (1.96 | ) | |||||||
Non-GAAP operating (loss) earnings attributable to Maiden common shareholders(1) | (0.54 | ) | 1.16 | (1.7 | ) | |||||||
Diluted (loss) earnings per common share: | ||||||||||||
Net (loss) income attributable to Maiden common shareholders(2) (9) | (0.76 | ) | 1.15 | (1.91 | ) | |||||||
Non-GAAP operating (loss) earnings attributable to Maiden common shareholders(1) (9) | (0.54 | ) | 1.11 | (1.65 | ) | |||||||
Dividends per common share | 0.45 | 0.42 | 0.03 | |||||||||
Gross premiums written | 2,259,597 | 2,259,290 | 307 | |||||||||
Net premiums earned | 2,074,475 | 1,951,851 | 122,624 | |||||||||
Underwriting (loss) income(3) | (116,455 | ) | 46,660 | (163,115 | ) | |||||||
Net investment income | 123,492 | 107,291 | 16,201 | |||||||||
Combined ratio(4) | 106.7 | % | 98.7 | % | 8.0 | |||||||
Annualized non-GAAP operating return on average common shareholders' equity(1) | (6.2 | )% | 11.8 | % | (18.0 | ) |
September 30, 2022 | December 31, 2021 | Change | ||||||||||||||||||
Consolidated Financial Condition | ($ in thousands except per share data) | |||||||||||||||||||
Total investments and cash and cash equivalents(4) | $ | 708,040 | $ | 888,699 | $ | (180,659) | ||||||||||||||
Total assets | 1,989,614 | 2,322,610 | (332,996) | |||||||||||||||||
Reserve for loss and LAE | 1,146,084 | 1,489,373 | (343,289) | |||||||||||||||||
Senior notes - principal amount | 262,500 | 262,500 | — | |||||||||||||||||
Common shareholders' equity | 207,721 | 225,047 | (17,326) | |||||||||||||||||
Shareholders' equity | 327,393 | 384,257 | (56,864) | |||||||||||||||||
Total capital resources(5) | 589,893 | 646,757 | (56,864) | |||||||||||||||||
Ratio of debt to total capital resources(10) | 44.5 | % | 40.6 | % | 3.9 | |||||||||||||||
Book Value calculations: | ||||||||||||||||||||
Book value per common share(6) | $ | 2.38 | $ | 2.60 | $ | (0.22) | ||||||||||||||
Accumulated dividends per common share(12) | 4.27 | 4.27 | — | |||||||||||||||||
Book value per common share plus accumulated dividends | $ | 6.65 | $ | 6.87 | $ | (0.22) | ||||||||||||||
Change in book value per common share plus accumulated dividends | (3.2) | % | ||||||||||||||||||
Diluted book value per common share(7) | $ | 2.37 | $ | 2.59 | $ | (0.22) | ||||||||||||||
Non-GAAP measures: | ||||||||||||||||||||
Adjusted book value per common share(8) | $ | 2.79 | $ | 3.18 | $ | (0.39) | ||||||||||||||
Adjusted shareholders' equity(9) | 362,531 | 434,200 | (71,669) | |||||||||||||||||
Adjusted total capital resources(9) | 625,031 | 696,700 | (71,669) | |||||||||||||||||
Ratio of debt to adjusted total capital resources(11) | 42.0 | % | 37.7 | % | 4.3 |
September 30, 2017 | December 31, 2016 | Change | ||||||||||
Consolidated Financial Condition | ($ in thousands except per share data) | |||||||||||
Total investments and cash and cash equivalents(5) | $ | 5,324,271 | $ | 4,886,473 | $ | 437,798 | ||||||
Total assets | 6,839,097 | 6,252,299 | 586,798 | |||||||||
Reserve for loss and loss adjustment expense ("loss and LAE") | 3,365,011 | 2,896,496 | 468,515 | |||||||||
Senior notes - principal amount | 262,500 | 362,500 | (100,000 | ) | ||||||||
Maiden common shareholders' equity | 956,027 | 1,045,797 | (89,770 | ) | ||||||||
Maiden shareholders' equity | 1,421,027 | 1,360,797 | 60,230 | |||||||||
Total capital resources(6) | 1,683,527 | 1,723,297 | (39,770 | ) | ||||||||
Ratio of debt to total capital resources | 15.6 | % | 21.0 | % | (5.4 | ) | ||||||
Book Value | ||||||||||||
Book value per common share(7) | $ | 11.30 | $ | 12.12 | $ | (0.82 | ) | |||||
Accumulated dividends per common share | 3.77 | 3.32 | 0.45 | |||||||||
Book value per common share plus accumulated dividends | $ | 15.07 | $ | 15.44 | $ | (0.37 | ) | |||||
Diluted book value per common share(8) (9) | $ | 11.20 | $ | 12.00 | $ | (0.80 | ) |
For the Three Months Ended September 30, | 2017 | 2016 | ||||||
($ in thousands except per share data) | ||||||||
Net (loss) income attributable to Maiden common shareholders | $ | (63,596 | ) | $ | 31,829 | |||
Add (subtract): | ||||||||
Net realized gains on investment | (5,859 | ) | (1,900 | ) | ||||
Foreign exchange losses (gains) | 3,550 | (687 | ) | |||||
Amortization of intangible assets | 533 | 616 | ||||||
Divested E&S business and NGHC run-off | 8,667 | 47 | ||||||
Non-cash deferred tax expense | 291 | 291 | ||||||
Non-GAAP operating (loss) earnings attributable to Maiden common shareholders | $ | (56,414 | ) | $ | 30,196 | |||
Diluted (loss) earnings per share attributable to Maiden common shareholders | $ | (0.74 | ) | $ | 0.40 | |||
Add (subtract): | ||||||||
Net realized gains on investment | (0.07 | ) | (0.02 | ) | ||||
Foreign exchange losses (gains) | 0.04 | (0.01 | ) | |||||
Amortization of intangible assets | 0.01 | 0.02 | ||||||
Divested E&S business and NGHC run-off | 0.10 | — | ||||||
Non-GAAP diluted operating (loss) earnings per common share | $ | (0.66 | ) | $ | 0.39 | |||
For the Nine Months Ended September 30, | 2017 | 2016 | ||||||
($ in thousands except per share data) | ||||||||
Net (loss) income attributable to Maiden common shareholders | $ | (65,465 | ) | $ | 89,955 | |||
Add (subtract): | ||||||||
Net realized gains on investment | (8,316 | ) | (4,511 | ) | ||||
Foreign exchange losses (gains) | 12,193 | (6,474 | ) | |||||
Amortization of intangible assets | 1,599 | 1,846 | ||||||
Divested E&S business and NGHC run-off | 10,083 | 2,942 | ||||||
Accelerated amortization of senior note issuance cost | 2,809 | 2,345 | ||||||
Non-cash deferred tax expense | 871 | 871 | ||||||
Non-GAAP operating (loss) earnings attributable to Maiden common shareholders | $ | (46,226 | ) | $ | 86,974 | |||
Diluted (loss) earnings per share attributable to Maiden common shareholders | $ | (0.76 | ) | $ | 1.15 | |||
Add (subtract): | ||||||||
Net realized gains on investment | (0.10 | ) | (0.05 | ) | ||||
Foreign exchange losses (gains) | 0.14 | (0.08 | ) | |||||
Amortization of intangible assets | 0.02 | 0.02 | ||||||
Divested E&S business and NGHC run-off | 0.12 | 0.03 | ||||||
Accelerated amortization of senior note issuance cost | 0.03 | 0.03 | ||||||
Non-cash deferred tax expense | 0.01 | 0.01 | ||||||
Non-GAAP diluted operating (loss) earnings per common share | $ | (0.54 | ) | $ | 1.11 |
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | |||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
($ in thousands) | ||||||||||||||||
Non-GAAP operating (loss) earnings attributable to Maiden common shareholders | $ | (56,414 | ) | $ | 30,196 | $ | (46,226 | ) | $ | 86,974 | ||||||
Opening Maiden common shareholders’ equity | $ | 1,035,399 | $ | 1,049,714 | $ | 1,045,797 | $ | 867,821 | ||||||||
Ending Maiden common shareholders’ equity | $ | 956,027 | $ | 1,240,300 | $ | 956,027 | $ | 1,240,300 | ||||||||
Average Maiden common shareholders’ equity | $ | 995,713 | $ | 1,091,203 | $ | 1,000,912 | $ | 981,196 | ||||||||
Operating ROACE | (22.5 | )% | 11.0 | % | (6.2 | )% | 11.8 | % |
September 30, 2017 | December 31, 2016 | |||||||
($ in thousands except share and per share data) | ||||||||
Ending Maiden common shareholders’ equity | $ | 956,027 | $ | 1,045,797 | ||||
Proceeds from assumed conversion of dilutive options | 9,697 | 13,383 | ||||||
Numerator for diluted book value per common share calculation | $ | 965,724 | $ | 1,059,180 | ||||
Common shares outstanding | 84,624,829 | 86,271,109 | ||||||
Shares issued from assumed conversion of dilutive options and restricted share units | 1,611,917 | 1,961,457 | ||||||
Denominator for diluted book value per common share calculation | 86,236,746 | 88,232,566 | ||||||
Book value per common share | $ | 11.30 | $ | 12.12 | ||||
Diluted book value per common share | $ | 11.20 | $ | 12.00 |
September 30, 2017 | December 31, 2016 | |||||||
($ in thousands) | ||||||||
Senior notes - principal amount | $ | 262,500 | $ | 362,500 | ||||
Maiden shareholders’ equity | 1,421,027 | 1,360,797 | ||||||
Total capital resources | $ | 1,683,527 | $ | 1,723,297 | ||||
Ratio of debt to total capital resources | 15.6 | % | 21.0 | % |
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | |||||||||||||||||||||||||
($ in thousands) | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||
Gross premiums written | $ | 5,380 | $ | 6,821 | $ | (1,451) | $ | 7,865 | ||||||||||||||||||
Net premiums written | $ | 5,222 | $ | 6,953 | $ | (1,915) | $ | 7,518 | ||||||||||||||||||
Net premiums earned | $ | 12,251 | $ | 15,030 | $ | 23,816 | $ | 40,106 | ||||||||||||||||||
Other insurance revenue | 368 | 138 | 888 | 946 | ||||||||||||||||||||||
Net loss and LAE | (17,426) | (10,514) | (22,017) | (7,546) | ||||||||||||||||||||||
Commission and other acquisition expenses | (5,398) | (6,313) | (12,811) | (19,154) | ||||||||||||||||||||||
General and administrative expenses(1) | (2,422) | (1,990) | (9,288) | (7,975) | ||||||||||||||||||||||
Underwriting (loss) income (2) | (12,627) | (3,649) | (19,412) | 6,377 | ||||||||||||||||||||||
Other general and administrative expenses(1) | (4,069) | (4,660) | (15,383) | (21,578) | ||||||||||||||||||||||
Net investment income | 6,637 | 7,477 | 20,871 | 24,596 | ||||||||||||||||||||||
Net realized and unrealized investment (losses) gains | (1,572) | (937) | 2,848 | 8,013 | ||||||||||||||||||||||
Foreign exchange and other gains | 8,586 | 4,116 | 19,121 | 6,070 | ||||||||||||||||||||||
Interest and amortization expenses | (4,833) | (4,832) | (14,498) | (14,495) | ||||||||||||||||||||||
Income tax benefit (expense) | 91 | 155 | (451) | 363 | ||||||||||||||||||||||
Interest in (loss) income of equity method investments | (373) | (810) | (2,143) | 4,912 | ||||||||||||||||||||||
Net (loss) income | (8,160) | (3,140) | (9,047) | 14,258 | ||||||||||||||||||||||
Gain from repurchase of preference shares | — | 6,004 | 28,233 | 87,168 | ||||||||||||||||||||||
Net (loss) income available to Maiden common shareholders | $ | (8,160) | $ | 2,864 | $ | 19,186 | $ | 101,426 | ||||||||||||||||||
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | |||||||||||||||
($ in thousands) | 2017 | 2016 | 2017 | 2016 | ||||||||||||
Gross premiums written | $ | 630,972 | $ | 706,854 | $ | 2,259,597 | $ | 2,259,290 | ||||||||
Net premiums written | $ | 617,330 | $ | 690,653 | $ | 2,201,950 | $ | 2,133,911 | ||||||||
Net premiums earned | $ | 653,866 | $ | 698,278 | $ | 2,074,475 | $ | 1,951,851 | ||||||||
Other insurance revenue | 2,488 | 2,345 | 7,816 | 8,696 | ||||||||||||
Net loss and LAE | (535,968 | ) | (466,751 | ) | (1,545,157 | ) | (1,297,361 | ) | ||||||||
Commission and other acquisition expenses | (193,462 | ) | (206,706 | ) | (625,530 | ) | (587,501 | ) | ||||||||
General and administrative expenses(1) | (9,366 | ) | (9,797 | ) | (28,059 | ) | (29,025 | ) | ||||||||
Underwriting (loss) income(2) | (82,442 | ) | 17,369 | (116,455 | ) | 46,660 | ||||||||||
Other general and administrative expenses(1) | (10,126 | ) | (7,155 | ) | (24,193 | ) | (20,713 | ) | ||||||||
Net investment income | 40,823 | 35,666 | 123,492 | 107,291 | ||||||||||||
Net realized gains on investment | 5,859 | 1,900 | 8,316 | 4,511 | ||||||||||||
Accelerated amortization of senior note issuance cost | — | — | (2,809 | ) | (2,345 | ) | ||||||||||
Amortization of intangible assets | (533 | ) | (616 | ) | (1,599 | ) | (1,846 | ) | ||||||||
Foreign exchange (losses) gains | (3,550 | ) | 687 | (12,193 | ) | 6,474 | ||||||||||
Interest and amortization expenses | (4,829 | ) | (6,856 | ) | (18,430 | ) | (21,314 | ) | ||||||||
Income tax expense | (256 | ) | (199 | ) | (1,017 | ) | (1,206 | ) | ||||||||
Net (loss) income | (55,054 | ) | 40,796 | (44,888 | ) | 117,512 | ||||||||||
Loss attributable to noncontrolling interests | 3 | 56 | 34 | 166 | ||||||||||||
Dividends on preference shares | (8,545 | ) | (9,023 | ) | (20,611 | ) | (27,723 | ) | ||||||||
Net (loss) income attributable to Maiden common shareholders | $ | (63,596 | ) | $ | 31,829 | $ | (65,465 | ) | $ | 89,955 | ||||||
Ratios | ||||||||||||||||
Net loss and LAE ratio(3) | 81.6 | % | 66.6 | % | 74.2 | % | 66.2 | % | ||||||||
Commission and other acquisition expense ratio(4) | 29.5 | % | 29.5 | % | 30.0 | % | 30.0 | % | ||||||||
General and administrative expense ratio(5) | 3.0 | % | 2.4 | % | 2.5 | % | 2.5 | % | ||||||||
Expense ratio(6) | 32.5 | % | 31.9 | % | 32.5 | % | 32.5 | % | ||||||||
Combined ratio(7) | 114.1 | % | 98.5 | % | 106.7 | % | 98.7 | % |
•underwriting loss |
For the Three Months Ended September 30, | 2022 | 2021 | Change in | |||||||||||||||||||||||||||||||||||
($ in thousands) | Total | Total | $ | |||||||||||||||||||||||||||||||||||
Diversified Reinsurance | $ | 6,027 | $ | 5,816 | $ | 211 | ||||||||||||||||||||||||||||||||
AmTrust Reinsurance | (805) | 1,137 | (1,942) | |||||||||||||||||||||||||||||||||||
Total | $ | 5,222 | $ | 6,953 | $ | (1,731) | ||||||||||||||||||||||||||||||||
For the Nine Months Ended September 30, | 2022 | 2021 | Change in | |||||||||||||||||||||||||||||||||||
($ in thousands) | Total | Total | $ | |||||||||||||||||||||||||||||||||||
Diversified Reinsurance | $ | 16,605 | $ | 10,600 | $ | 6,005 | ||||||||||||||||||||||||||||||||
AmTrust Reinsurance | (18,520) | (3,082) | (15,438) | |||||||||||||||||||||||||||||||||||
Total | $ | (1,915) | $ | 7,518 | $ | (9,433) |
For the Three Months Ended September 30, | 2017 | 2016 | Change in | ||||||||||||||||||
($ in thousands) | Total | % of Total | Total | % of Total | $ | % | |||||||||||||||
Diversified Reinsurance | $ | 207,137 | 33.6 | % | $ | 179,092 | 25.9 | % | $ | 28,045 | 15.7 | % | |||||||||
AmTrust Reinsurance | 410,193 | 66.4 | % | 511,561 | 74.1 | % | (101,368 | ) | (19.8 | )% | |||||||||||
Total | $ | 617,330 | 100.0 | % | $ | 690,653 | 100.0 | % | $ | (73,323 | ) | (10.6 | )% | ||||||||
For the Nine Months Ended September 30, | 2017 | 2016 | Change in | ||||||||||||||||||
($ in thousands) | Total | % of Total | Total | % of Total | $ | % | |||||||||||||||
Diversified Reinsurance | $ | 671,880 | 30.5 | % | $ | 626,522 | 29.3 | % | $ | 45,358 | 7.2 | % | |||||||||
AmTrust Reinsurance | 1,529,980 | 69.5 | % | 1,507,389 | 70.7 | % | 22,591 | 1.5 | % | ||||||||||||
Total - reportable segments | 2,201,860 | 100.0 | % | 2,133,911 | 100.0 | % | 67,949 | 3.2 | % | ||||||||||||
Other | 90 | — | % | — | — | % | 90 | NM | |||||||||||||
Total | $ | 2,201,950 | 100.0 | % | $ | 2,133,911 | 100.0 | % | $ | 68,039 | 3.2 | % |
For the Three Months Ended September 30, | 2022 | 2021 | Change in | |||||||||||||||||||||||||||||||||||
($ in thousands) | Total | Total | $ | % | ||||||||||||||||||||||||||||||||||
Diversified Reinsurance | $ | 6,932 | $ | 7,521 | $ | (589) | (7.8) | % | ||||||||||||||||||||||||||||||
AmTrust Quota Share Reinsurance | 5,319 | 7,509 | (2,190) | (29.2) | % | |||||||||||||||||||||||||||||||||
Total | $ | 12,251 | $ | 15,030 | $ | (2,779) | (18.5) | % | ||||||||||||||||||||||||||||||
For the Nine Months Ended September 30, | 2022 | 2021 | Change in | |||||||||||||||||||||||||||||||||||
($ in thousands) | Total | Total | $ | % | ||||||||||||||||||||||||||||||||||
Diversified Reinsurance | $ | 20,012 | $ | 20,723 | $ | (711) | (3.4) | % | ||||||||||||||||||||||||||||||
AmTrust Quota Share Reinsurance | 3,804 | 19,383 | (15,579) | (80.4) | % | |||||||||||||||||||||||||||||||||
Total | $ | 23,816 | $ | 40,106 | $ | (16,290) | (40.6) | % |
For the Three Months Ended September 30, | 2017 | 2016 | Change in | ||||||||||||||||||
($ in thousands) | Total | % of Total | Total | % of Total | $ | % | |||||||||||||||
Diversified Reinsurance | $ | 217,513 | 33.3 | % | $ | 175,141 | 25.1 | % | $ | 42,372 | 24.2 | % | |||||||||
AmTrust Quota Share Reinsurance | 436,353 | 66.7 | % | 523,137 | 74.9 | % | (86,784 | ) | (16.6 | )% | |||||||||||
Total | $ | 653,866 | 100.0 | % | $ | 698,278 | 100.0 | % | $ | (44,412 | ) | (6.4 | )% | ||||||||
For the Nine Months Ended September 30, | 2017 | 2016 | Change in | ||||||||||||||||||
($ in thousands) | Total | % of Total | Total | % of Total | $ | % | |||||||||||||||
Diversified Reinsurance | $ | 623,574 | 30.1 | % | $ | 538,152 | 27.6 | % | $ | 85,422 | 15.9 | % | |||||||||
AmTrust Quota Share Reinsurance | 1,450,811 | 69.9 | % | 1,413,699 | 72.4 | % | 37,112 | 2.6 | % | ||||||||||||
Total - reportable segments | 2,074,385 | 100.0 | % | 1,951,851 | 100.0 | % | 122,534 | 6.3 | % | ||||||||||||
Other | 90 | — | % | — | — | % | 90 | NM | |||||||||||||
Total | $ | 2,074,475 | 100.0 | % | $ | 1,951,851 | 100.0 | % | $ | 122,624 | 6.3 | % |
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | |||||||||||||||||||||||||
($ in thousands) | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||
Average aggregate fixed income assets, at cost (1) | $ | 1,264,251 | $ | 1,708,297 | $ | 1,327,597 | $ | 1,870,686 | ||||||||||||||||||
Annualized investment book yield | 2.2 | % | 1.9 | % | 2.0 | % | 1.9 | % | ||||||||||||||||||
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | |||||||||||||||
($ in thousands) | 2017 | 2016 | 2017 | 2016 | ||||||||||||
Average invested assets(1) | $ | 5,294,274 | $ | 4,968,685 | $ | 5,232,717 | $ | 4,819,365 | ||||||||
Average book yield(2) | 3.1 | % | 2.9 | % | 3.1 | % | 3.0 | % |
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | |||||||||||||||||||||||||
($ in thousands) | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||
Hedge fund investments | $ | (1,437) | $ | (1,838) | $ | (4,981) | $ | 1,786 | ||||||||||||||||||
Real estate investments | (24) | — | (6) | — | ||||||||||||||||||||||
Other investments | 1,088 | 1,028 | 2,844 | 3,126 | ||||||||||||||||||||||
Interest in (loss) income from equity method investments | $ | (373) | $ | (810) | $ | (2,143) | $ | 4,912 | ||||||||||||||||||
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | |||||||||||||||
($ in thousands) | 2017 | 2016 | 2017 | 2016 | ||||||||||||
General and administrative expenses – segments | $ | 9,366 | $ | 9,797 | $ | 28,059 | $ | 29,025 | ||||||||
General and administrative expenses – corporate | 10,126 | 7,155 | 24,193 | 20,713 | ||||||||||||
Total general and administrative expenses | $ | 19,492 | $ | 16,952 | $ | 52,252 | $ | 49,738 |
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | |||||||||||||||||||||||||
($ in thousands) | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||
General and administrative expenses – segments | $ | 2,422 | $ | 1,990 | $ | 9,288 | $ | 7,975 | ||||||||||||||||||
General and administrative expenses – corporate | 4,069 | 4,660 | 15,383 | 21,578 | ||||||||||||||||||||||
Total general and administrative expenses | $ | 6,491 | $ | 6,650 | $ | 24,671 | $ | 29,553 |
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | |||||||||||||||
($ in thousands) | 2017 | 2016 | 2017 | 2016 | ||||||||||||
Gross premiums written | $ | 210,953 | $ | 186,750 | $ | 683,839 | $ | 667,388 | ||||||||
Net premiums written | 207,137 | 179,092 | 671,880 | 626,522 | ||||||||||||
Net premiums earned | 217,513 | 175,141 | 623,574 | 538,152 | ||||||||||||
Other insurance revenue | 2,488 | 2,345 | 7,816 | 8,696 | ||||||||||||
Net loss and LAE | (172,273 | ) | (132,396 | ) | (487,759 | ) | (395,718 | ) | ||||||||
Commission and other acquisition expenses | (54,810 | ) | (39,868 | ) | (159,744 | ) | (139,895 | ) | ||||||||
General and administrative expenses | (8,595 | ) | (9,038 | ) | (25,819 | ) | (26,717 | ) | ||||||||
Underwriting loss | $ | (15,677 | ) | $ | (3,816 | ) | $ | (41,932 | ) | $ | (15,482 | ) | ||||
Ratios | ||||||||||||||||
Net loss and LAE ratio | 78.3 | % | 74.6 | % | 77.2 | % | 72.4 | % | ||||||||
Commission and other acquisition expense ratio | 24.9 | % | 22.5 | % | 25.3 | % | 25.6 | % | ||||||||
General and administrative expense ratio | 3.9 | % | 5.1 | % | 4.1 | % | 4.8 | % | ||||||||
Expense ratio | 28.8 | % | 27.6 | % | 29.4 | % | 30.4 | % | ||||||||
Combined ratio | 107.1 | % | 102.2 | % | 106.6 | % | 102.8 | % |
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | |||||||||||||||||||||||||
($ in thousands) | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||
Gross premiums written | $ | 6,185 | $ | 5,684 | $ | 17,069 | $ | 10,947 | ||||||||||||||||||
Net premiums written | $ | 6,027 | $ | 5,816 | $ | 16,605 | $ | 10,600 | ||||||||||||||||||
Net premiums earned | $ | 6,932 | $ | 7,521 | $ | 20,012 | $ | 20,723 | ||||||||||||||||||
Other insurance revenue | 368 | 138 | 888 | 946 | ||||||||||||||||||||||
Net loss and LAE | (1,965) | (554) | (2,945) | (3,216) | ||||||||||||||||||||||
Commission and other acquisition expenses | (3,394) | (3,461) | (10,684) | (11,668) | ||||||||||||||||||||||
General and administrative expenses | (1,901) | (1,583) | (7,007) | (6,190) | ||||||||||||||||||||||
Underwriting income | $ | 40 | $ | 2,061 | $ | 264 | $ | 595 | ||||||||||||||||||
For the Three Months Ended September 30, | 2017 | 2016 | Change in | ||||||||||||||||||
Total | % of Total | Total | % of Total | $ | % | ||||||||||||||||
Net Premiums Written | ($ in thousands) | ($ in thousands) | ($ in thousands) | ||||||||||||||||||
Property | $ | 37,962 | 18.3 | % | $ | 30,606 | 17.1 | % | $ | 7,356 | 24.0 | % | |||||||||
Casualty | 129,726 | 62.6 | % | 115,360 | 64.4 | % | 14,366 | 12.5 | % | ||||||||||||
Accident and Health | 16,946 | 8.2 | % | 14,845 | 8.3 | % | 2,101 | 14.2 | % | ||||||||||||
International | 22,503 | 10.9 | % | 18,281 | 10.2 | % | 4,222 | 23.1 | % | ||||||||||||
Total Diversified Reinsurance | $ | 207,137 | 100.0 | % | $ | 179,092 | 100.0 | % | $ | 28,045 | 15.7 | % | |||||||||
For the Nine Months Ended September 30, | 2017 | 2016 | Change in | ||||||||||||||||||
Total | % of Total | Total | % of Total | $ | % | ||||||||||||||||
Net Premiums Written | ($ in thousands) | ($ in thousands) | ($ in thousands) | ||||||||||||||||||
Property | $ | 132,398 | 19.7 | % | $ | 123,991 | 19.8 | % | $ | 8,407 | 6.8 | % | |||||||||
Casualty | 391,503 | 58.3 | % | 365,332 | 58.3 | % | 26,171 | 7.2 | % | ||||||||||||
Accident and Health | 74,504 | 11.1 | % | 68,140 | 10.9 | % | 6,364 | 9.3 | % | ||||||||||||
International | 73,475 | 10.9 | % | 69,059 | 11.0 | % | 4,416 | 6.4 | % | ||||||||||||
Total Diversified Reinsurance | $ | 671,880 | 100.0 | % | $ | 626,522 | 100.0 | % | $ | 45,358 | 7.2 | % |
For the Three Months Ended September 30, | 2017 | 2016 | Change in | ||||||||||||||||||
Total | % of Total | Total | % of Total | $ | % | ||||||||||||||||
Net Premiums Earned | ($ in thousands) | ($ in thousands) | ($ in thousands) | ||||||||||||||||||
Property | $ | 43,362 | 19.9 | % | $ | 29,921 | 17.1 | % | $ | 13,441 | 44.9 | % | |||||||||
Casualty | 130,428 | 60.0 | % | 105,893 | 60.5 | % | 24,535 | 23.2 | % | ||||||||||||
Accident and Health | 22,780 | 10.5 | % | 18,436 | 10.5 | % | 4,344 | 23.6 | % | ||||||||||||
International | 20,943 | 9.6 | % | 20,891 | 11.9 | % | 52 | 0.2 | % | ||||||||||||
Total Diversified Reinsurance | $ | 217,513 | 100.0 | % | $ | 175,141 | 100.0 | % | $ | 42,372 | 24.2 | % | |||||||||
For the Nine Months Ended September 30, | 2017 | 2016 | Change in | ||||||||||||||||||
Total | % of Total | Total | % of Total | $ | % | ||||||||||||||||
Net Premiums Earned | ($ in thousands) | ($ in thousands) | ($ in thousands) | ||||||||||||||||||
Property | $ | 122,888 | 19.7 | % | $ | 103,023 | 19.1 | % | $ | 19,865 | 19.3 | % | |||||||||
Casualty | 375,141 | 60.2 | % | 313,736 | 58.3 | % | 61,405 | 19.6 | % | ||||||||||||
Accident and Health | 63,878 | 10.2 | % | 55,788 | 10.4 | % | 8,090 | 14.5 | % | ||||||||||||
International | 61,667 | 9.9 | % | 65,605 | 12.2 | % | (3,938 | ) | (6.0 | )% | |||||||||||
Total Diversified Reinsurance | $ | 623,574 | 100.0 | % | $ | 538,152 | 100.0 | % | $ | 85,422 | 15.9 | % |
For the Three Months Ended September 30, | 2022 | 2021 | Change | |||||||||||||||||||||||
($ in thousands) | ||||||||||||||||||||||||||
International | $ | 24 | $ | 61 | $ | (37) | ||||||||||||||||||||
Changes in fair value of non-hedged derivatives on retroactive reinsurance | 306 | — | 306 | |||||||||||||||||||||||
Other service fee income | 38 | 77 | (39) | |||||||||||||||||||||||
Total Diversified Reinsurance | $ | 368 | $ | 138 | $ | 230 | ||||||||||||||||||||
For the Nine Months Ended September 30, | 2022 | 2021 | Change | |||||||||||||||||||||||
($ in thousands) | ||||||||||||||||||||||||||
International | $ | 44 | $ | 714 | $ | (670) | ||||||||||||||||||||
Changes in fair value of non-hedged derivatives on retroactive reinsurance | 699 | — | 699 | |||||||||||||||||||||||
Other service fee income | 145 | 232 | (87) | |||||||||||||||||||||||
Total Diversified Reinsurance | $ | 888 | $ | 946 | $ | (58) |
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | |||||||||||||||||||||||||
($ in thousands) | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||
Gross premiums written | $ | (805) | $ | 1,137 | $ | (18,520) | $ | (3,082) | ||||||||||||||||||
Net premiums written | $ | (805) | $ | 1,137 | $ | (18,520) | $ | (3,082) | ||||||||||||||||||
Net premiums earned | $ | 5,319 | $ | 7,509 | $ | 3,804 | $ | 19,383 | ||||||||||||||||||
Net loss and LAE | (15,461) | (9,960) | (19,072) | (4,330) | ||||||||||||||||||||||
Commission and other acquisition expenses | (2,004) | (2,852) | (2,127) | (7,486) | ||||||||||||||||||||||
General and administrative expenses | (521) | (407) | (2,281) | (1,785) | ||||||||||||||||||||||
Underwriting (loss) income | $ | (12,667) | $ | (5,710) | $ | (19,676) | $ | 5,782 | ||||||||||||||||||
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | |||||||||||||||
($ in thousands) | 2017 | 2016 | 2017 | 2016 | ||||||||||||
Gross premiums written | $ | 420,019 | $ | 520,104 | $ | 1,575,677 | $ | 1,591,902 | ||||||||
Net premiums written | 410,193 | 511,561 | 1,529,980 | 1,507,389 | ||||||||||||
Net premiums earned | 436,353 | 523,137 | 1,450,811 | 1,413,699 | ||||||||||||
Net loss and LAE | (355,030 | ) | (334,310 | ) | (1,047,222 | ) | (898,703 | ) | ||||||||
Commission and other acquisition expenses | (138,650 | ) | (166,836 | ) | (465,789 | ) | (447,604 | ) | ||||||||
General and administrative expenses | (771 | ) | (759 | ) | (2,240 | ) | (2,308 | ) | ||||||||
Underwriting (loss) income | $ | (58,098 | ) | $ | 21,232 | $ | (64,440 | ) | $ | 65,084 | ||||||
Ratios | ||||||||||||||||
Net loss and LAE ratio | 81.4 | % | 63.9 | % | 72.2 | % | 63.5 | % | ||||||||
Commission and other acquisition expense ratio | 31.7 | % | 31.9 | % | 32.1 | % | 31.7 | % | ||||||||
General and administrative expense ratio | 0.2 | % | 0.1 | % | 0.1 | % | 0.2 | % | ||||||||
Expense ratio | 31.9 | % | 32.0 | % | 32.2 | % | 31.9 | % | ||||||||
Combined ratio | 113.3 | % | 95.9 | % | 104.4 | % | 95.4 | % |
For the Three Months Ended September 30, | 2022 | 2021 | Change in | |||||||||||||||||||||||||||||||||||
($ in thousands) | Total | Total | $ | |||||||||||||||||||||||||||||||||||
Net Premiums Written | ||||||||||||||||||||||||||||||||||||||
Small Commercial Business | $ | (636) | $ | (1,309) | $ | 673 | ||||||||||||||||||||||||||||||||
Specialty Program | (43) | 22 | (65) | |||||||||||||||||||||||||||||||||||
Specialty Risk and Extended Warranty | (126) | 2,424 | (2,550) | |||||||||||||||||||||||||||||||||||
Total AmTrust Reinsurance | $ | (805) | $ | 1,137 | $ | (1,942) | ||||||||||||||||||||||||||||||||
For the Nine Months Ended September 30, | 2022 | 2021 | Change in | |||||||||||||||||||||||||||||||||||
($ in thousands) | Total | Total | $ | |||||||||||||||||||||||||||||||||||
Net Premiums Written | ||||||||||||||||||||||||||||||||||||||
Small Commercial Business | $ | (15,007) | $ | (5,381) | $ | (9,626) | ||||||||||||||||||||||||||||||||
Specialty Program | 732 | (7) | 739 | |||||||||||||||||||||||||||||||||||
Specialty Risk and Extended Warranty | (4,245) | 2,306 | (6,551) | |||||||||||||||||||||||||||||||||||
Total AmTrust Reinsurance | $ | (18,520) | $ | (3,082) | $ | (15,438) |
For the Three Months Ended September 30, | 2017 | 2016 | Change in | ||||||||||||||||||
Total | % of Total | Total | % of Total | $ | % | ||||||||||||||||
Net Premiums Written | ($ in thousands) | ($ in thousands) | ($ in thousands) | ||||||||||||||||||
Small Commercial Business | $ | 295,499 | 72.0 | % | $ | 314,677 | 61.5 | % | $ | (19,178 | ) | (6.1 | )% | ||||||||
Specialty Program | 63,816 | 15.6 | % | 98,895 | 19.3 | % | (35,079 | ) | (35.5 | )% | |||||||||||
Specialty Risk and Extended Warranty | 50,878 | 12.4 | % | 97,989 | 19.2 | % | (47,111 | ) | (48.1 | )% | |||||||||||
Total AmTrust Reinsurance | $ | 410,193 | 100.0 | % | $ | 511,561 | 100.0 | % | $ | (101,368 | ) | (19.8 | )% | ||||||||
For the Nine Months Ended September 30, | 2017 | 2016 | Change in | ||||||||||||||||||
Total | % of Total | Total | % of Total | $ | % | ||||||||||||||||
Net Premiums Written | ($ in thousands) | ($ in thousands) | ($ in thousands) | ||||||||||||||||||
Small Commercial Business | $ | 1,028,905 | 67.3 | % | $ | 983,601 | 65.3 | % | $ | 45,304 | 4.6 | % | |||||||||
Specialty Program | 255,767 | 16.7 | % | 268,193 | 17.8 | % | (12,426 | ) | (4.6 | )% | |||||||||||
Specialty Risk and Extended Warranty | 245,308 | 16.0 | % | 255,595 | 16.9 | % | (10,287 | ) | (4.0 | )% | |||||||||||
Total AmTrust Reinsurance | $ | 1,529,980 | 100.0 | % | $ | 1,507,389 | 100.0 | % | $ | 22,591 | 1.5 | % |
For the Three Months Ended September 30, | 2017 | 2016 | Change in | ||||||||||||||||||
Total | % of Total | Total | % of Total | $ | % | ||||||||||||||||
Net Premiums Earned | ($ in thousands) | ($ in thousands) | ($ in thousands) | ||||||||||||||||||
Small Commercial Business | $ | 314,773 | 72.1 | % | $ | 320,596 | 61.3 | % | $ | (5,823 | ) | (1.8 | )% | ||||||||
Specialty Program | 59,143 | 13.6 | % | 89,856 | 17.2 | % | (30,713 | ) | (34.2 | )% | |||||||||||
Specialty Risk and Extended Warranty | 62,437 | 14.3 | % | 112,685 | 21.5 | % | (50,248 | ) | (44.6 | )% | |||||||||||
Total AmTrust Reinsurance | $ | 436,353 | 100.0 | % | $ | 523,137 | 100.0 | % | $ | (86,784 | ) | (16.6 | )% | ||||||||
For the Nine Months Ended September 30, | 2017 | 2016 | Change in | ||||||||||||||||||
Total | % of Total | Total | % of Total | $ | % | ||||||||||||||||
Net Premiums Earned | ($ in thousands) | ($ in thousands) | ($ in thousands) | ||||||||||||||||||
Small Commercial Business | $ | 946,782 | 65.3 | % | $ | 864,699 | 61.2 | % | $ | 82,083 | 9.5 | % | |||||||||
Specialty Program | 251,153 | 17.3 | % | 251,543 | 17.8 | % | (390 | ) | (0.2 | )% | |||||||||||
Specialty Risk and Extended Warranty | 252,876 | 17.4 | % | 297,457 | 21.0 | % | (44,581 | ) | (15.0 | )% | |||||||||||
Total AmTrust Reinsurance | $ | 1,450,811 | 100.0 | % | $ | 1,413,699 | 100.0 | % | $ | 37,112 | 2.6 | % |
For the Three Months Ended September 30, | 2022 | 2021 | Change in | |||||||||||||||||||||||||||||||||||
($ in thousands) | Total | Total | $ | |||||||||||||||||||||||||||||||||||
Net Premiums Earned | ||||||||||||||||||||||||||||||||||||||
Small Commercial Business | $ | (636) | $ | (1,227) | $ | 591 | ||||||||||||||||||||||||||||||||
Specialty Program | (43) | 28 | (71) | |||||||||||||||||||||||||||||||||||
Specialty Risk and Extended Warranty | 5,998 | 8,708 | (2,710) | |||||||||||||||||||||||||||||||||||
Total AmTrust Reinsurance | $ | 5,319 | $ | 7,509 | $ | (2,190) | ||||||||||||||||||||||||||||||||
For the Nine Months Ended September 30, | 2022 | 2021 | Change in | |||||||||||||||||||||||||||||||||||
($ in thousands) | Total | Total | $ | |||||||||||||||||||||||||||||||||||
Net Premiums Earned | ||||||||||||||||||||||||||||||||||||||
Small Commercial Business | $ | (14,995) | $ | (5,073) | $ | (9,922) | ||||||||||||||||||||||||||||||||
Specialty Program | 733 | 12 | 721 | |||||||||||||||||||||||||||||||||||
Specialty Risk and Extended Warranty | 18,066 | 24,444 | (6,378) | |||||||||||||||||||||||||||||||||||
Total AmTrust Reinsurance | $ | 3,804 | $ | 19,383 | $ | (15,579) |
For the Nine Months Ended September 30, | 2017 | 2016 | For the Nine Months Ended September 30, | 2022 | 2021 | |||||||||||||||||
($ in thousands) | ($ in thousands) | |||||||||||||||||||||
Operating activities | $ | 374,779 | $ | 326,157 | Operating activities | $ | (99,833) | $ | (299,750) | |||||||||||||
Investing activities | (212,053 | ) | (291,389 | ) | Investing activities | 119,379 | 344,206 | |||||||||||||||
Financing activities | (28,440 | ) | (59,665 | ) | Financing activities | (10,983) | (128,988) | |||||||||||||||
Effect of exchange rate changes on foreign currency cash | 2,644 | 2,715 | Effect of exchange rate changes on foreign currency cash | (2,152) | (333) | |||||||||||||||||
Total increase (decrease) in cash and cash equivalents | $ | 136,930 | $ | (22,182 | ) | |||||||||||||||||
Total increase (decrease) in cash, restricted cash and cash equivalents | Total increase (decrease) in cash, restricted cash and cash equivalents | $ | 6,411 | $ | (84,865) |
September 30, 2022 | December 31, 2021 | |||||||||||||
($ in thousands) | ||||||||||||||
Fixed maturities, available-for-sale, at fair value | $ | 371,973 | $ | 597,145 | ||||||||||
Equity securities, at fair value | 42,600 | 24,003 | ||||||||||||
Equity method investments | 80,165 | 83,742 | ||||||||||||
Other investments | 140,804 | 117,722 | ||||||||||||
Total investments | 635,542 | 822,612 | ||||||||||||
Cash and cash equivalents | 24,376 | 26,668 | ||||||||||||
Restricted cash and cash equivalents | 48,122 | 39,419 | ||||||||||||
Total Investments and Cash and Cash Equivalents | $ | 708,040 | $ | 888,699 |
September 30, 2022 | Original or Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | Average yield(1) | Average duration(2) | ||||||||||||||||||||||||||||||||
($ in thousands) | ||||||||||||||||||||||||||||||||||||||
U.S. treasury bonds | $ | 58,464 | $ | — | $ | (241) | $ | 58,223 | 0.5 | % | 0.2 | |||||||||||||||||||||||||||
U.S. agency bonds – mortgage-backed | 73,874 | — | (7,682) | 66,192 | 2.9 | % | 4.4 | |||||||||||||||||||||||||||||||
Collateralized mortgage-backed securities | 7,199 | — | (397) | 6,802 | 4.2 | % | 3.1 | |||||||||||||||||||||||||||||||
Non-U.S. government bonds | 12,586 | — | (1,605) | 10,981 | 0.3 | % | 3.1 | |||||||||||||||||||||||||||||||
Collateralized loan obligations | 175,047 | — | (30,514) | 144,533 | 2.3 | % | 0.3 | |||||||||||||||||||||||||||||||
Corporate bonds | 105,144 | — | (19,902) | 85,242 | 1.5 | % | 2.4 | |||||||||||||||||||||||||||||||
Total fixed maturities | 432,314 | — | (60,341) | 371,973 | 1.9 | % | 1.6 | |||||||||||||||||||||||||||||||
Cash and cash equivalents | 72,498 | — | — | 72,498 | 0.6 | % | 0.0 | |||||||||||||||||||||||||||||||
Total | $ | 504,812 | $ | — | $ | (60,341) | $ | 444,471 | 1.7 | % | 1.4 |
December 31, 2021 | Original or Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | Average yield(1) | Average duration(2) | ||||||||||||||||||||||||||||||||
($ in thousands) | ||||||||||||||||||||||||||||||||||||||
U.S. treasury bonds | $ | 59,989 | $ | — | $ | (110) | $ | 59,879 | 0.2 | % | 0.9 | |||||||||||||||||||||||||||
U.S. agency bonds – mortgage-backed | 96,554 | 2,429 | (193) | 98,790 | 2.7 | % | 2.1 | |||||||||||||||||||||||||||||||
Collateralized mortgage-backed securities | 14,972 | 565 | — | 15,537 | 3.2 | % | 3.1 | |||||||||||||||||||||||||||||||
Non-U.S. government bonds | 3,163 | 113 | — | 3,276 | 0.3 | % | 7.3 | |||||||||||||||||||||||||||||||
Collateralized loan obligations | 183,974 | 140 | (5,093) | 179,021 | 1.3 | % | 0.3 | |||||||||||||||||||||||||||||||
Corporate bonds | 236,692 | 10,094 | (6,144) | 240,642 | 2.5 | % | 2.7 | |||||||||||||||||||||||||||||||
Total fixed maturities | 595,344 | 13,341 | (11,540) | 597,145 | 1.9 | % | 1.7 | |||||||||||||||||||||||||||||||
Cash and cash equivalents | 66,087 | — | — | 66,087 | — | % | 0.0 | |||||||||||||||||||||||||||||||
Total | $ | 661,431 | $ | 13,341 | $ | (11,540) | $ | 663,232 | 1.7 | % | 1.5 |
September 30, 2022 | December 31, 2021 | |||||||||||||
Fixed maturities and cash and cash equivalents | 1.4 | 1.5 | ||||||||||||
Reserve for loss and LAE - gross of LPT/ADC Agreement reserves | 5.1 | 4.4 | ||||||||||||
Reserve for loss and LAE - net of LPT/ADC Agreement reserves | 0.8 | 1.4 |
September 30, 2017 | December 31, 2016 | |||
Fixed maturities and cash and cash equivalents | 4.4 | 4.9 | ||
Reserve for loss and LAE | 3.6 | 3.8 |
September 30, 2017 | Original or Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | Average yield(1) | Average duration(2) | ||||||||||||||||
AFS fixed maturities | ($ in thousands) | |||||||||||||||||||||
U.S. treasury bonds | $ | 5,194 | $ | 150 | $ | (8 | ) | $ | 5,336 | 3.0 | % | 1.7 | ||||||||||
U.S. agency bonds – mortgage-backed | 2,004,645 | 14,208 | (12,451 | ) | 2,006,402 | 2.8 | % | 4.6 | ||||||||||||||
Non-U.S. government and supranational bonds | 33,392 | 216 | (2,012 | ) | 31,596 | 2.7 | % | 3.3 | ||||||||||||||
Asset-backed securities | 257,969 | 4,456 | (164 | ) | 262,261 | 4.4 | % | 2.3 | ||||||||||||||
Corporate bonds | 1,541,296 | 52,717 | (17,624 | ) | 1,576,389 | 3.2 | % | 5.0 | ||||||||||||||
Municipal bonds | 2,500 | 103 | — | 2,603 | 4.2 | % | 8.1 | |||||||||||||||
Total AFS fixed maturities | 3,844,996 | 71,850 | (32,259 | ) | 3,884,587 | 3.1 | % | 4.6 | ||||||||||||||
HTM fixed maturities | ||||||||||||||||||||||
Corporate bonds | 1,057,943 | 34,027 | (748 | ) | 1,091,222 | 3.5 | % | 5.2 | ||||||||||||||
Municipal Bonds | 60,425 | 459 | — | 60,884 | 3.2 | % | 5.0 | |||||||||||||||
Total HTM fixed maturities | 1,118,368 | 34,486 | (748 | ) | 1,152,106 | 3.5 | % | 5.1 | ||||||||||||||
Cash and cash equivalents | 314,275 | — | — | 314,275 | 0.2 | % | 0.0 | |||||||||||||||
Total | $ | 5,277,639 | $ | 106,336 | $ | (33,007 | ) | $ | 5,350,968 | 3.0 | % | 4.4 |
December 31, 2016 | Original or Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | Average yield(1) | Average duration(2) | ||||||||||||||||
AFS fixed maturities | ($ in thousands) | |||||||||||||||||||||
U.S. treasury bonds | $ | 5,186 | $ | 238 | $ | (11 | ) | $ | 5,413 | 3.0 | % | 2.4 | ||||||||||
U.S. agency bonds – mortgage-backed | 1,720,436 | 12,867 | (17,265 | ) | 1,716,038 | 2.8 | % | 4.9 | ||||||||||||||
U.S. agency bonds – other | 18,082 | 20 | — | 18,102 | 3.2 | % | 8.9 | |||||||||||||||
Non-U.S. government and supranational bonds | 35,158 | 73 | (5,297 | ) | 29,934 | 2.4 | % | 3.4 | ||||||||||||||
Asset-backed securities | 217,232 | 3,713 | (69 | ) | 220,876 | 4.6 | % | 2.5 | ||||||||||||||
Corporate bonds | 1,947,347 | 30,951 | (62,093 | ) | 1,916,205 | 3.5 | % | 5.4 | ||||||||||||||
Municipal bonds | 62,201 | 2,897 | — | 65,098 | 4.2 | % | 6.5 | |||||||||||||||
Total AFS fixed maturities | 4,005,642 | 50,759 | (84,735 | ) | 3,971,666 | 3.2 | % | 5.1 | ||||||||||||||
HTM fixed maturities | ||||||||||||||||||||||
Corporate bonds | 752,212 | 16,370 | (2,447 | ) | 766,135 | 3.6 | % | 5.2 | ||||||||||||||
Total HTM fixed maturities | 752,212 | 16,370 | (2,447 | ) | 766,135 | |||||||||||||||||
Cash and cash equivalents | 149,535 | — | — | 149,535 | 0.1 | % | 0.0 | |||||||||||||||
Total | $ | 4,907,389 | $ | 67,129 | $ | (87,182 | ) | $ | 4,887,336 | 3.2 | % | 4.9 |
September 30, 2022 | December 31, 2021 | |||||||||||||||||||||||||
($ in thousands) | Fair Value | % of Total | Fair Value | % of Total | ||||||||||||||||||||||
Floating rate securities | ||||||||||||||||||||||||||
Collateralized loan obligations | $ | 144,533 | 12.8 | % | $ | 174,873 | 11.9 | % | ||||||||||||||||||
Collateralized mortgage-backed securities | 4,794 | 0.4 | % | 3,007 | 0.2 | % | ||||||||||||||||||||
Corporate bonds | 977 | 0.1 | % | 1,145 | 0.1 | % | ||||||||||||||||||||
Total floating rate AFS fixed maturities at fair value | 150,304 | 13.3 | % | 179,025 | 12.2 | % | ||||||||||||||||||||
Loan to related party | 167,975 | 14.9 | % | 167,975 | 11.4 | % | ||||||||||||||||||||
Total floating rate securities | $ | 318,279 | 28.2 | % | $ | 347,000 | 23.6 | % | ||||||||||||||||||
Total fixed income investments at fair value (1) | $ | 1,129,035 | $ | 1,467,619 |
September 30, 2017 | December 31, 2016 | |||||||||||||||
($ in thousands) | AFS fixed maturities | HTM fixed maturities | AFS fixed maturities | HTM fixed maturities | ||||||||||||
Fair Value | Amortized cost | Fair Value | Amortized Cost | |||||||||||||
Due in one year or less | $ | 38,784 | $ | 49,293 | $ | 61,219 | $ | — | ||||||||
Due after one year through five years | 583,569 | 335,922 | 560,141 | 260,557 | ||||||||||||
Due after five years through ten years | 990,968 | 723,297 | 1,371,356 | 486,568 | ||||||||||||
Due after ten years | 2,603 | 9,856 | 42,036 | 5,087 | ||||||||||||
1,615,924 | 1,118,368 | 2,034,752 | 752,212 | |||||||||||||
U.S. agency bonds – mortgage-backed | 2,006,402 | — | 1,716,038 | — | ||||||||||||
Asset-backed securities | 262,261 | — | 220,876 | — | ||||||||||||
Total fixed maturities | $ | 3,884,587 | $ | 1,118,368 | $ | 3,971,666 | $ | 752,212 |
September 30, 2022 | December 31, 2021 | |||||||||||||||||||||||||
($ in thousands) | Fair Value | % of Total | Fair Value | % of Total | ||||||||||||||||||||||
FNMA – fixed rate | $ | 32,099 | 48.5 | % | $ | 47,419 | 48.0 | % | ||||||||||||||||||
FHLMC – fixed rate | 31,337 | 47.3 | % | 47,758 | 48.3 | % | ||||||||||||||||||||
GNMA – variable rate | 2,756 | 4.2 | % | 3,613 | 3.7 | % | ||||||||||||||||||||
Total U.S. Agency MBS | $ | 66,192 | 100.0 | % | $ | 98,790 | 100.0 | % | ||||||||||||||||||
September 30, 2017 | December 31, 2016 | |||||||||||||
Fair Value | % of Total | Fair Value | % of Total | |||||||||||
U.S. agency bonds - mortgage-backed | ($ in thousands) | ($ in thousands) | ||||||||||||
Residential mortgage-backed (RMBS) | ||||||||||||||
GNMA – fixed rate | $ | 357,165 | 17.8 | % | $ | 368,142 | 21.2 | % | ||||||
FNMA – fixed rate | 893,334 | 44.5 | % | 800,947 | 46.2 | % | ||||||||
FNMA – variable rate | 14,441 | 0.7 | % | 17,761 | 1.0 | % | ||||||||
FHLMC – fixed rate | 736,956 | 36.8 | % | 523,983 | 30.2 | % | ||||||||
FHLMC – variable rate | 4,506 | 0.2 | % | 5,205 | 0.3 | % | ||||||||
Total U.S. agency bonds - mortgage-backed | 2,006,402 | 100.0 | % | 1,716,038 | 98.9 | % | ||||||||
Non-MBS fixed rate agency bonds | — | — | % | 18,102 | 1.1 | % | ||||||||
Total U.S. agency bonds | $ | 2,006,402 | 100.0 | % | $ | 1,734,140 | 100.0 | % |
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | |||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
Agency MBS: | ($ in thousands) | ($ in thousands) | ||||||||||||||
Beginning balance | $ | 1,795,612 | $ | 1,451,795 | $ | 1,716,038 | $ | 1,476,991 | ||||||||
Purchases | 271,651 | 267,040 | 490,237 | 366,399 | ||||||||||||
Sales, calls and paydowns | (63,438 | ) | (104,146 | ) | (202,556 | ) | (261,238 | ) | ||||||||
Net realized gains on sales – included in net income | 22 | — | (74 | ) | 230 | |||||||||||
Change in net unrealized losses – included in other comprehensive income | 3,751 | (7,149 | ) | 6,155 | 28,156 | |||||||||||
Amortization of bond premium and discount | (1,196 | ) | (1,762 | ) | (3,398 | ) | (4,760 | ) | ||||||||
Ending balance | $ | 2,006,402 | $ | 1,605,778 | $ | 2,006,402 | $ | 1,605,778 |
Ratings(1) | ||||||||||||||||||||||||||||||||||||||||||||
September 30, 2022 | AAA | A+, A, A- | BBB+, BBB, BBB- | BB+ or lower | Fair Value | % of Corporate bonds portfolio | ||||||||||||||||||||||||||||||||||||||
Corporate bonds | ($ in thousands) | |||||||||||||||||||||||||||||||||||||||||||
Basic Materials | — | % | 5.3 | % | — | % | — | % | $ | 4,481 | 5.3 | % | ||||||||||||||||||||||||||||||||
Communications | — | % | 5.6 | % | 5.2 | % | — | % | 9,195 | 10.8 | % | |||||||||||||||||||||||||||||||||
Consumer | — | % | 6.2 | % | 38.6 | % | — | % | 38,176 | 44.8 | % | |||||||||||||||||||||||||||||||||
Energy | — | % | 0.9 | % | 7.5 | % | — | % | 7,189 | 8.4 | % | |||||||||||||||||||||||||||||||||
Financial Institutions | 1.7 | % | 20.0 | % | 1.5 | % | 5.2 | % | 24,245 | 28.4 | % | |||||||||||||||||||||||||||||||||
Industrials | — | % | 2.3 | % | — | % | — | % | 1,956 | 2.3 | % | |||||||||||||||||||||||||||||||||
Total | 1.7 | % | 40.3 | % | 52.8 | % | 5.2 | % | $ | 85,242 | 100.0 | % |
Ratings(1) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ratings(1) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
September 30, 2017 | AAA | AA+, AA, AA- | A+, A, A- | BBB+, BBB, BBB- | BB+ or lower | Fair Value | % of Corporate bonds portfolio | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
($ in thousands) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2021 | December 31, 2021 | AAA | A+, A, A- | BBB+, BBB, BBB- | BB+ or lower | Fair Value | % of Corporate bonds portfolio | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate bonds | Corporate bonds | ($ in thousands) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Basic Materials | — | % | — | % | 1.8 | % | 4.4 | % | 0.9 | % | $ | 186,804 | 7.1 | % | Basic Materials | — | % | 2.4 | % | 1.7 | % | — | % | $ | 9,995 | 4.1 | % | |||||||||||||||||||||||||||||||||||||||
Communications | — | % | 0.5 | % | 1.3 | % | 6.0 | % | — | % | 209,098 | 7.8 | % | Communications | — | % | 2.4 | % | 3.2 | % | — | % | 13,480 | 5.6 | % | |||||||||||||||||||||||||||||||||||||||||
Consumer | — | % | 0.5 | % | 13.9 | % | 11.6 | % | — | % | 695,590 | 26.0 | % | Consumer | — | % | 2.4 | % | 31.3 | % | 2.8 | % | 87,753 | 36.5 | % | |||||||||||||||||||||||||||||||||||||||||
Energy | — | % | 1.0 | % | 3.8 | % | 3.0 | % | 0.8 | % | 229,598 | 8.6 | % | Energy | — | % | 9.4 | % | 4.8 | % | — | % | 34,068 | 14.2 | % | |||||||||||||||||||||||||||||||||||||||||
Financial Institutions | 1.4 | % | 3.3 | % | 22.8 | % | 12.3 | % | — | % | 1,059,788 | 39.8 | % | Financial Institutions | 0.6 | % | 18.8 | % | 12.9 | % | 2.6 | % | 84,025 | 34.9 | % | |||||||||||||||||||||||||||||||||||||||||
Industrials | — | % | 0.8 | % | 2.0 | % | 2.8 | % | 0.1 | % | 151,750 | 5.7 | % | Industrials | — | % | 1.0 | % | — | % | — | % | 2,393 | 1.0 | % | |||||||||||||||||||||||||||||||||||||||||
Technology | — | % | 1.1 | % | 2.6 | % | 0.8 | % | 0.5 | % | 134,983 | 5.0 | % | Technology | — | % | 3.7 | % | — | % | — | % | 8,928 | 3.7 | % | |||||||||||||||||||||||||||||||||||||||||
Total Corporate bonds | 1.4 | % | 7.2 | % | 48.2 | % | 40.9 | % | 2.3 | % | $ | 2,667,611 | 100.0 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | Total | 0.6 | % | 40.1 | % | 53.9 | % | 5.4 | % | $ | 240,642 | 100.0 | % |
Ratings(1) | ||||||||||||||||||||||
December 31, 2016 | AAA | AA+, AA, AA- | A+, A, A- | BBB+, BBB, BBB- | BB+ or lower | Fair Value | % of Corporate bonds portfolio | |||||||||||||||
($ in thousands) | ||||||||||||||||||||||
Corporate bonds | ||||||||||||||||||||||
Basic Materials | — | % | — | % | 1.5 | % | 4.1 | % | 2.4 | % | $ | 213,904 | 8.0 | % | ||||||||
Communications | — | % | 0.5 | % | 1.3 | % | 6.6 | % | — | % | 223,984 | 8.4 | % | |||||||||
Consumer | — | % | 0.4 | % | 14.9 | % | 8.9 | % | 0.3 | % | 657,717 | 24.5 | % | |||||||||
Energy | — | % | 1.0 | % | 3.8 | % | 2.7 | % | 2.1 | % | 256,449 | 9.6 | % | |||||||||
Financial Institutions | 1.4 | % | 2.3 | % | 22.1 | % | 12.6 | % | 0.2 | % | 1,035,759 | 38.6 | % | |||||||||
Industrials | — | % | 0.8 | % | 2.0 | % | 2.9 | % | 0.6 | % | 170,030 | 6.3 | % | |||||||||
Technology | — | % | 2.2 | % | 1.1 | % | 0.6 | % | 0.7 | % | 124,497 | 4.6 | % | |||||||||
Total Corporate bonds | 1.4 | % | 7.2 | % | 46.7 | % | 38.4 | % | 6.3 | % | $ | 2,682,340 | 100.0 | % |
September 30, 2022 | Fair Value | % of Holdings | Rating(1) | |||||||||||||||||
($ in thousands) | ||||||||||||||||||||
Anheuser-Busch INBEV NV, 2.875%, Due 9/25/2024 | $ | 9,795 | 2.6 | % | BBB+ | |||||||||||||||
Chubb Ina Holdings Inc., 1.55%, Due 3/15/2028 | 5,655 | 1.5 | % | A | ||||||||||||||||
Kraft Heinz Foods Co., 1.5%, Due 5/24/2024 | 5,558 | 1.5 | % | BBB- | ||||||||||||||||
Glencore Finance (Europe) LTD, 1.875%, Due 9/13/2023 | 4,827 | 1.3 | % | BBB+ | ||||||||||||||||
Santander Consumer Finance SA, 1.125%, Due 10/9/2023 | 4,806 | 1.3 | % | A | ||||||||||||||||
Volkswagen International Finance NV, 1.125%, Due 10/2/2023 | 4,800 | 1.3 | % | A- | ||||||||||||||||
America Movil SAB DE CV, 1.5%, Due 3/10/2024 | 4,789 | 1.3 | % | A- | ||||||||||||||||
Utah Acquisition Sub Inc., 2.25%, Due 11/22/2024 | 4,712 | 1.3 | % | BBB- | ||||||||||||||||
Molson Coors Beverage Co., 1.25%, Due 7/15/2024 | 4,674 | 1.2 | % | BBB- | ||||||||||||||||
PPG Industries Inc., 0.875%, Due 11/3/2025 | 4,481 | 1.2 | % | A- | ||||||||||||||||
Total | $ | 54,097 | 14.5 | % |
September 30, 2017 | Fair Value | % of Holdings Based on Fair Value of All Fixed Income Securities | Rating(1) | ||||||
($ in thousands) | |||||||||
Australia and New Zealand Banking Group, 3.70% Due 11/16/2025 | $ | 26,505 | 0.5 | % | AA- | ||||
Morgan Stanley, 4.00% Due 7/23/2025 | 26,383 | 0.5 | % | BBB+ | |||||
Schlumberger Holdings Corporation, 4.00% Due 12/21/2025 | 26,269 | 0.5 | % | AA- | |||||
JP Morgan Chase & Co, 3.90% Due 7/15/2025 | 21,078 | 0.5 | % | A- | |||||
Vale Overseas Ltd, 4.375% Due 1/11/2022 | 20,890 | 0.4 | % | BBB- | |||||
Gilead Sciences Inc, 3.65% Due 3/1/2026 | 20,889 | 0.4 | % | A | |||||
BNP Paribas, 5.00% Due 1/15/2021 | 20,732 | 0.4 | % | A | |||||
Brookfield Asset Management Inc, 4.00%, Due 1/15/2025 | 20,590 | 0.4 | % | A- | |||||
Rabobank Nederland Utrec, 3.875% Due 2/8/2022 | 20,261 | 0.4 | % | A+ | |||||
AT&T Inc, 2.625% Due 12/1/2022 | 19,997 | 0.4 | % | BBB+ | |||||
Total | $ | 223,594 | 4.4 | % |
September 30, 2022 | December 31, 2021 | |||||||||||||||||||||||||
($ in thousands) | Fair Value | % of Total | Fair Value | % of Total | ||||||||||||||||||||||
Non-U.S. dollar denominated collateralized loan obligations | $ | 90,514 | 48.9 | % | $ | 113,399 | 42.9 | % | ||||||||||||||||||
Non-U.S. dollar denominated corporate bonds | 83,788 | 45.2 | % | 147,740 | 55.9 | % | ||||||||||||||||||||
Non-U.S. government bonds | 10,981 | 5.9 | % | 3,275 | 1.2 | % | ||||||||||||||||||||
Total non-U.S. dollar denominated securities | $ | 185,283 | 100.0 | % | $ | 264,414 | 100.0 | % |
September 30, 2017 | December 31, 2016 | |||||||||||||
($ in thousands) | Fair Value | % of Total | Fair Value | % of Total | ||||||||||
Non-U.S. dollar denominated corporate bonds | $ | 427,985 | 93.3 | % | $ | 345,646 | 92.3 | % | ||||||
Non-U.S. government and supranational bonds | 30,624 | 6.7 | % | 28,980 | 7.7 | % | ||||||||
Total non-U.S. dollar denominated AFS securities | $ | 458,609 | 100.0 | % | $ | 374,626 | 100.0 | % |
September 30, 2017 | December 31, 2016 | |||||||||||||
($ in thousands) | Fair Value | % of Total | Fair Value | % of Total | ||||||||||
Euro | $ | 391,865 | 85.4 | % | $ | 315,768 | 84.3 | % | ||||||
British Pound | 42,654 | 9.3 | % | 39,154 | 10.5 | % | ||||||||
Australian Dollar | 14,169 | 3.1 | % | 10,089 | 2.7 | % | ||||||||
Canadian Dollar | 5,272 | 1.2 | % | 3,360 | 0.9 | % | ||||||||
All other | 4,649 | 1.0 | % | 6,255 | 1.6 | % | ||||||||
Total non-U.S. dollar denominated AFS securities | $ | 458,609 | 100.0 | % | $ | 374,626 | 100.0 | % |
Ratings(1) | September 30, 2022 | December 31, 2021 | ||||||||||||||||||||||||
($ in thousands) | Fair Value | % of Total | Fair Value | % of Total | ||||||||||||||||||||||
A+, A, A- | $ | 34,311 | 40.9 | % | $ | 56,669 | 38.4 | % | ||||||||||||||||||
BBB+, BBB, BBB- | 45,066 | 53.8 | % | 78,021 | 52.8 | % | ||||||||||||||||||||
BB+ or lower | 4,411 | 5.3 | % | 13,050 | 8.8 | % | ||||||||||||||||||||
Total non-U.S. dollar denominated corporate bonds | $ | 83,788 | 100.0 | % | $ | 147,740 | 100.0 | % |
Ratings(1) | September 30, 2017 | December 31, 2016 | ||||||||||||
($ in thousands) | Fair Value | % of Total | Fair Value | % of Total | ||||||||||
AAA | $ | 37,396 | 8.7 | % | $ | 31,704 | 9.2 | % | ||||||
AA+, AA, AA- | 58,473 | 13.7 | % | 30,535 | 8.8 | % | ||||||||
A+, A, A- | 198,164 | 46.3 | % | 161,845 | 46.8 | % | ||||||||
BBB+, BBB, BBB- | 133,952 | 31.3 | % | 114,456 | 33.1 | % | ||||||||
BB+ or lower | — | — | % | 7,106 | 2.1 | % | ||||||||
Total non-U.S. dollar denominated corporate bonds | $ | 427,985 | 100.0 | % | $ | 345,646 | 100.0 | % |
September 30, 2022 | December 31, 2021 | |||||||||||||||||||||||||
($ in thousands) | Carrying Value | % of Total | Carrying Value | % of Total | ||||||||||||||||||||||
Real estate equity method investments | $ | 44,925 | 17.0 | % | $ | 44,050 | 19.6 | % | ||||||||||||||||||
Hedge fund equity method investments | 15,447 | 5.9 | % | 32,929 | 14.6 | % | ||||||||||||||||||||
Investments in direct lending entities | 52,783 | 20.0 | % | 42,976 | 19.1 | % | ||||||||||||||||||||
Private equity funds | 31,777 | 12.1 | % | 23,324 | 10.3 | % | ||||||||||||||||||||
Private credit funds | 24,129 | 9.2 | % | 20,922 | 9.3 | % | ||||||||||||||||||||
Privately held other investments | 32,115 | 12.2 | % | 30,500 | 13.5 | % | ||||||||||||||||||||
Other equity method investments | 19,793 | 7.5 | % | 6,763 | 3.0 | % | ||||||||||||||||||||
Privately held equity securities | 42,002 | 15.9 | % | 22,829 | 10.1 | % | ||||||||||||||||||||
Publicly traded equity securities | 598 | 0.2 | % | 1,174 | 0.5 | % | ||||||||||||||||||||
Total alternative investments | $ | 263,569 | 100.0 | % | $ | 225,467 | 100.0 | % |
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | |||||||||||||||||||||||||
($ in thousands) | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||
Net investment income: | ||||||||||||||||||||||||||
Fixed income assets(1) | $ | 6,646 | $ | 8,042 | $ | 19,635 | $ | 26,074 | ||||||||||||||||||
Cash and restricted cash | 154 | (5) | 172 | 11 | ||||||||||||||||||||||
Other investments, including equities | 776 | 382 | 2,120 | 602 | ||||||||||||||||||||||
Investment expenses | (939) | (942) | (1,056) | (2,091) | ||||||||||||||||||||||
Total net investment income | 6,637 | 7,477 | 20,871 | 24,596 | ||||||||||||||||||||||
Net realized (losses) gains: | ||||||||||||||||||||||||||
Fixed income assets(1) | 96 | 1,791 | 1,192 | 5,794 | ||||||||||||||||||||||
Other investments, including equities | (1,822) | 167 | (1,345) | 1,130 | ||||||||||||||||||||||
Total net realized (losses) gains | (1,726) | 1,958 | (153) | 6,924 | ||||||||||||||||||||||
Net unrealized gains (losses): | ||||||||||||||||||||||||||
Other investments, including equities | 154 | (2,895) | 3,001 | 1,089 | ||||||||||||||||||||||
Total net unrealized gains (losses) | 154 | (2,895) | 3,001 | 1,089 | ||||||||||||||||||||||
Interest in (loss) income of equity method investments: | ||||||||||||||||||||||||||
Interest in (loss) income of equity method investments | (373) | (810) | (2,143) | 4,912 | ||||||||||||||||||||||
Total interest in (loss) income of equity method investments | (373) | (810) | (2,143) | 4,912 | ||||||||||||||||||||||
Total investment return included in earnings (A) | $ | 4,692 | $ | 5,730 | $ | 21,576 | $ | 37,521 | ||||||||||||||||||
Other comprehensive loss: | ||||||||||||||||||||||||||
Unrealized losses on AFS fixed maturities and equity method investments excluding foreign exchange (B) | $ | (8,613) | $ | (9,066) | $ | (32,279) | $ | (26,453) | ||||||||||||||||||
Total investment return = (A) + (B) | $ | (3,921) | $ | (3,336) | $ | (10,703) | $ | 11,068 | ||||||||||||||||||
Annualized income from fixed income assets and cash(2) | $ | 27,200 | $ | 32,148 | $ | 26,409 | $ | 34,780 | ||||||||||||||||||
Average aggregate fixed income assets and cash, at cost(2) | 1,264,251 | 1,708,297 | 1,327,597 | 1,870,686 | ||||||||||||||||||||||
Annualized investment book yield | 2.2 | % | 1.9 | % | 2.0 | % | 1.9 | % | ||||||||||||||||||
Average aggregate invested assets, at fair value(3) | $1,468,428 | $1,896,211 | $1,542,845 | $2,046,594 | ||||||||||||||||||||||
Investment return included in net earnings | 0.3 | % | 0.3 | % | 1.4 | % | 1.8 | % | ||||||||||||||||||
Total investment return | (0.3) | % | (0.2) | % | (0.7) | % | 0.5 | % |
Fixed Income Investments(1) | For the Three Months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||||||||||||||||
($ in thousands) | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||
Gross investment income | $ | 6,800 | $ | 8,037 | $ | 19,807 | $ | 26,085 | ||||||||||||||||||
Net realized and unrealized gains | 96 | 1,791 | 1,192 | 5,794 | ||||||||||||||||||||||
Change in AOCI (3) | (8,613) | (4,988) | (36,693) | (18,956) | ||||||||||||||||||||||
Gross investment returns | $ | (1,717) | $ | 4,840 | $ | (15,694) | $ | 12,923 | ||||||||||||||||||
Average invested assets, at fair value (4) | $ | 1,211,365 | $ | 1,729,162 | $ | 1,298,327 | $ | 1,902,726 | ||||||||||||||||||
Gross Investment Returns | (0.1) | % | 0.3 | % | (1.2) | % | 0.7 | % | ||||||||||||||||||
Investment expenses | $ | 99 | $ | 196 | $ | 329 | $ | 690 | ||||||||||||||||||
Net investment returns | $ | (1,816) | $ | 4,644 | $ | (16,023) | $ | 12,233 | ||||||||||||||||||
Net Investment Returns | (0.1) | % | 0.3 | % | (1.2) | % | 0.6 | % |
Alternative Investments(2) | For the Three Months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||||||||||||||||
($ in thousands) | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||
Gross investment income | $ | 403 | $ | (428) | $ | (23) | $ | 5,514 | ||||||||||||||||||
Net realized and unrealized (losses) gains | (1,668) | (2,728) | 1,656 | 2,219 | ||||||||||||||||||||||
Change in AOCI (3) | — | (4,078) | 4,414 | (7,497) | ||||||||||||||||||||||
Gross investment returns | $ | (1,265) | $ | (7,234) | $ | 6,047 | $ | 236 | ||||||||||||||||||
Average invested assets, at fair value (4) | $ | 257,063 | $ | 167,048 | $ | 244,518 | $ | 143,868 | ||||||||||||||||||
Gross Investment Returns | (0.5) | % | (4.3) | % | 2.5 | % | 0.2 | % | ||||||||||||||||||
Investment expenses | $ | 840 | $ | 746 | $ | 727 | $ | 1,401 | ||||||||||||||||||
Net investment returns | $ | (2,105) | $ | (7,980) | $ | 5,320 | $ | (1,165) | ||||||||||||||||||
Net Investment Returns | (0.8) | % | (4.8) | % | 2.2 | % | (0.8) | % |
($ in thousands) | September 30, 2017 | December 31, 2016 | Change | Change % | ($ in thousands) | September 30, 2022 | December 31, 2021 | Change | Change % | ||||||||||||||||||||||||||||||||
Reinsurance balances receivable, net | $ | 479,472 | $ | 410,166 | $ | 69,306 | 16.9 | % | Reinsurance balances receivable, net | $ | 12,368 | $ | 19,507 | $ | (7,139) | (36.6) | % | ||||||||||||||||||||||||
Reinsurance recoverable on unpaid losses | Reinsurance recoverable on unpaid losses | 547,975 | 562,845 | (14,870) | (2.6) | % | |||||||||||||||||||||||||||||||||||
Deferred commission and other acquisition expenses | Deferred commission and other acquisition expenses | 27,295 | 36,703 | (9,408) | (25.6) | % | |||||||||||||||||||||||||||||||||||
Funds withheld receivable | Funds withheld receivable | 516,589 | 636,412 | (119,823) | (18.8) | % | |||||||||||||||||||||||||||||||||||
Reserve for loss and LAE | 3,365,011 | 2,896,496 | 468,515 | 16.2 | % | Reserve for loss and LAE | 1,146,084 | 1,489,373 | (343,289) | (23.0) | % | ||||||||||||||||||||||||||||||
Unearned premiums | 1,601,069 | 1,475,506 | 125,563 | 8.5 | % | Unearned premiums | 73,760 | 100,131 | (26,371) | (26.3) | % | ||||||||||||||||||||||||||||||
Accrued expenses and other liabilities | Accrued expenses and other liabilities | 147,591 | 44,542 | 103,049 | 231.4 | % |
($ in thousands) | September 30, 2022 | December 31, 2021 | Change | Change % | ||||||||||||||||||||||
Preference shares | $ | 119,672 | $ | 159,210 | $ | (39,538) | (24.8) | % | ||||||||||||||||||
Common shareholders' equity | 207,721 | 225,047 | (17,326) | (7.7) | % | |||||||||||||||||||||
Total shareholders' equity | 327,393 | 384,257 | (56,864) | (14.8) | % | |||||||||||||||||||||
Senior Notes - principal amount | 262,500 | 262,500 | — | — | % | |||||||||||||||||||||
Total capital resources | $ | 589,893 | $ | 646,757 | $ | (56,864) | (8.8) | % |
($ in thousands) | September 30, 2017 | December 31, 2016 | Change | Change % | |||||||||||
Preference shares | $ | 465,000 | $ | 315,000 | $ | 150,000 | 47.6 | % | |||||||
Common shareholders' equity | 956,027 | 1,045,797 | (89,770 | ) | (8.6 | )% | |||||||||
Total Maiden shareholders' equity | 1,421,027 | 1,360,797 | 60,230 | 4.4 | % | ||||||||||
Senior Notes - principal amount | 262,500 | 362,500 | (100,000 | ) | (27.6 | )% | |||||||||
Total capital resources | $ | 1,683,527 | $ | 1,723,297 | $ | (39,770 | ) | (2.3 | )% |
($ in thousands except share and per share data) | September 30, 2022 | December 31, 2021 | ||||||||||||
Ending common shareholders’ equity | $ | 207,721 | $ | 225,047 | ||||||||||
Proceeds from assumed conversion of dilutive options | 5 | 10 | ||||||||||||
Numerator for diluted book value per common share calculation | $ | 207,726 | $ | 225,057 | ||||||||||
Common shares outstanding | 87,161,499 | 86,467,242 | ||||||||||||
Shares issued from assumed conversion of dilutive options and restricted shares | 509,963 | 494,926 | ||||||||||||
Denominator for diluted book value per common share calculation | 87,671,462 | 86,962,168 | ||||||||||||
Book value per common share | $ | 2.38 | $ | 2.60 | ||||||||||
Diluted book value per common share | 2.37 | 2.59 |
($ in thousands) | September 30, 2022 | December 31, 2021 | ||||||||||||
Senior notes - principal amount | $ | 262,500 | $ | 262,500 | ||||||||||
Maiden shareholders’ equity | 327,393 | 384,257 | ||||||||||||
Total capital resources | $ | 589,893 | $ | 646,757 | ||||||||||
Ratio of debt to total capital resources | 44.5 | % | 40.6 | % |
For the Three Months Ended September 30, | 2022 | 2021 | ||||||||||||||||||||||||
($ in thousands except per share data) | ||||||||||||||||||||||||||
Net (loss) income available to Maiden common shareholders | $ | (8,160) | $ | 2,864 | ||||||||||||||||||||||
Add (subtract): | ||||||||||||||||||||||||||
Net realized and unrealized investment losses | 1,572 | 937 | ||||||||||||||||||||||||
Foreign exchange and other gains | (8,586) | (4,116) | ||||||||||||||||||||||||
Interest in loss of equity method investments | 373 | 810 | ||||||||||||||||||||||||
Decrease in deferred gain on retroactive reinsurance under the LPT/ADC Agreement | (6,259) | (3,609) | ||||||||||||||||||||||||
Non-GAAP operating loss | $ | (21,060) | $ | (3,114) | ||||||||||||||||||||||
Diluted (loss) earnings per share attributable to common shareholders | $ | (0.09) | $ | 0.03 | ||||||||||||||||||||||
Add (subtract): | ||||||||||||||||||||||||||
Net realized and unrealized investment losses | 0.02 | 0.01 | ||||||||||||||||||||||||
Foreign exchange and other gains | (0.10) | (0.05) | ||||||||||||||||||||||||
Interest in loss of equity method investments | — | 0.01 | ||||||||||||||||||||||||
Decrease in deferred gain on retroactive reinsurance under the LPT/ADC Agreement | (0.07) | (0.04) | ||||||||||||||||||||||||
Non-GAAP diluted operating loss per share attributable to common shareholders | $ | (0.24) | $ | (0.04) | ||||||||||||||||||||||
For the Nine Months Ended September 30, | 2022 | 2021 | ||||||||||||||||||||||||
($ in thousands except per share data) | ||||||||||||||||||||||||||
Net income available to Maiden common shareholders | $ | 19,186 | $ | 101,426 | ||||||||||||||||||||||
Add (subtract): | ||||||||||||||||||||||||||
Net realized and unrealized investment gains | (2,848) | (8,013) | ||||||||||||||||||||||||
Foreign exchange and other gains | (19,121) | (6,070) | ||||||||||||||||||||||||
Interest in loss (income) of equity method investments | 2,143 | (4,912) | ||||||||||||||||||||||||
Decrease in deferred gain on retroactive reinsurance under the LPT/ADC Agreement | (10,722) | (24,296) | ||||||||||||||||||||||||
Non-GAAP operating (loss) earnings | $ | (11,362) | $ | 58,135 | ||||||||||||||||||||||
Diluted earnings per share attributable to common shareholders | $ | 0.22 | $ | 1.17 | ||||||||||||||||||||||
Add (subtract): | ||||||||||||||||||||||||||
Net realized and unrealized investment gains | (0.03) | (0.09) | ||||||||||||||||||||||||
Foreign exchange and other gains | (0.22) | (0.07) | ||||||||||||||||||||||||
Interest in loss (income) of equity method investments | 0.02 | (0.06) | ||||||||||||||||||||||||
Decrease in deferred gain on retroactive reinsurance under the LPT/ADC Agreement | (0.12) | (0.28) | ||||||||||||||||||||||||
Non-GAAP diluted operating (loss) earnings per share available to common shareholders | $ | (0.13) | $ | 0.67 |
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | |||||||||||||||||||||||||
($ in thousands) | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||
Non-GAAP operating (loss) earnings | $ | (21,060) | $ | (3,114) | $ | (11,362) | $ | 58,135 | ||||||||||||||||||
Opening adjusted common shareholders’ equity | 269,658 | 277,082 | 274,990 | 208,447 | ||||||||||||||||||||||
Ending adjusted common shareholders’ equity | 242,859 | 273,565 | 242,859 | 273,565 | ||||||||||||||||||||||
Average adjusted common shareholders’ equity | 256,259 | 275,324 | 258,925 | 241,006 | ||||||||||||||||||||||
Non-GAAP Operating ROACE | (32.6) | % | (4.5) | % | (5.9) | % | 32.3 | % |
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | |||||||||||||||||||||||||
($ in thousands) | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||
Gross premiums written | $ | 5,380 | $ | 6,821 | $ | (1,451) | $ | 7,865 | ||||||||||||||||||
Net premiums written | $ | 5,222 | $ | 6,953 | $ | (1,915) | $ | 7,518 | ||||||||||||||||||
Net premiums earned | $ | 12,251 | $ | 15,030 | $ | 23,816 | $ | 40,106 | ||||||||||||||||||
Other insurance revenue | 368 | 138 | 888 | 946 | ||||||||||||||||||||||
Non-GAAP net loss and LAE(1) | (23,685) | (14,123) | (32,739) | (31,842) | ||||||||||||||||||||||
Commission and other acquisition expenses | (5,398) | (6,313) | (12,811) | (19,154) | ||||||||||||||||||||||
General and administrative expenses | (2,422) | (1,990) | (9,288) | (7,975) | ||||||||||||||||||||||
Non-GAAP underwriting loss (1) | $ | (18,886) | $ | (7,258) | $ | (30,134) | $ | (17,919) | ||||||||||||||||||
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | |||||||||||||||||||||||||
($ in thousands) | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||
Net loss and LAE | $ | 17,426 | $ | 10,514 | $ | 22,017 | $ | 7,546 | ||||||||||||||||||
Less: favorable prior year loss development subject to the LPT/ADC Agreement | (6,259) | (3,609) | (10,722) | (24,296) | ||||||||||||||||||||||
Non-GAAP net loss and LAE | $ | 23,685 | $ | 14,123 | $ | 32,739 | $ | 31,842 |
($ in thousands) | September 30, 2022 | December 31, 2021 | Change | Change % | ||||||||||||||||||||||
Preference shares | $ | 119,672 | $ | 159,210 | $ | (39,538) | (24.8) | % | ||||||||||||||||||
Common shareholders' equity | 207,721 | 225,047 | (17,326) | (7.7) | % | |||||||||||||||||||||
Total shareholders' equity | 327,393 | 384,257 | (56,864) | (14.8) | % | |||||||||||||||||||||
LP Investment Adjustment | — | 4,083 | (4,083) | (100.0) | % | |||||||||||||||||||||
Unamortized deferred gain on LPT/ADC Agreement | 35,138 | 45,860 | (10,722) | (23.4) | % | |||||||||||||||||||||
Adjusted shareholders' equity | 362,531 | 434,200 | (71,669) | (16.5) | % | |||||||||||||||||||||
Senior Notes - principal amount | 262,500 | 262,500 | — | — | % | |||||||||||||||||||||
Adjusted total capital resources | $ | 625,031 | $ | 696,700 | $ | (71,669) | (10.3) | % |
September 30, 2022 | December 31, 2021 | |||||||||||||
Book value per common share | $ | 2.38 | $ | 2.60 | ||||||||||
LP Investment Adjustment | — | 0.05 | ||||||||||||
Unamortized deferred gain on LPT/ADC Agreement | 0.41 | 0.53 | ||||||||||||
Adjusted book value per common share | $ | 2.79 | $ | 3.18 |
($ in thousands) | September 30, 2022 | December 31, 2021 | ||||||||||||
Senior notes - principal amount | $ | 262,500 | $ | 262,500 | ||||||||||
Adjusted shareholders’ equity | 362,531 | 434,200 | ||||||||||||
Adjusted total capital resources | $ | 625,031 | $ | 696,700 | ||||||||||
Ratio of debt to adjusted total capital resources | 42.0 | % | 37.7 | % |
Hypothetical Change in Interest Rates | Fair Value | Estimated Change in Fair Value | Hypothetical % (Decrease) Increase in Shareholders’ Equity | ||||||||
($ in thousands) | |||||||||||
200 basis point increase | $ | 3,555,940 | $ | (328,647 | ) | (23.1 | )% | ||||
100 basis point increase | 3,714,624 | (169,963 | ) | (12.0 | )% | ||||||
No change | 3,884,587 | — | — | % | |||||||
100 basis point decrease | 4,068,897 | 184,310 | 13.0 | % | |||||||
200 basis point decrease | 4,267,740 | 383,153 | 27.0 | % |
September 30, 2017 | December 31, 2016 | |||||
Ratings(1) | ||||||
AA+ or better | 44.5 | % | 41.3 | % | ||
AA, AA-, A+, A, A- | 32.2 | % | 33.2 | % | ||
BBB+, BBB, BBB- | 22.2 | % | 22.0 | % | ||
BB+ or lower | 1.1 | % | 3.5 | % | ||
100.0 | % | 100.0 | % |
September 30, 2017 | December 31, 2016 | |||||
A or better | 98.7 | % | 97.2 | % | ||
B++ or worse | 1.3 | % | 2.8 | % | ||
100.0 | % | 100.0 | % |
For the Three Months Ended September 30, 2017 | Total number of shares repurchased | Average price paid per share | Total number of shares purchased as part of publicly announced plans or programs (a) | Dollar amount still available under trading plan | ||||||||||
($ in thousands) | ||||||||||||||
July 1, 2017 - July 31, 2017 | — | $ | — | — | $ | 100,000 | ||||||||
August 1, 2017 - August 31, 2017 | 1,380,000 | $ | 7.31 | 1,380,000 | $ | 89,914 | ||||||||
September 1, 2017 - September 30, 2017 | 635,700 | $ | 6.69 | 635,700 | $ | 85,662 | ||||||||
Total | 2,015,700 | $ | 7.11 | 2,015,700 | $ | 85,662 |
Exhibit No. | Description | |||||||
31.1 | ||||||||
31.2 | ||||||||
32.1 | ||||||||
32.2 | ||||||||
101.1 | The following materials from Maiden Holdings, Ltd. Quarterly Report on Form 10-Q for the quarter ended September 30, 2022 formatted in |
MAIDEN HOLDINGS, LTD. | ||||||||
By: | ||||||||
November 9, 2022 | /s/ Lawrence F. Metz | |||||||
Lawrence F. Metz President and Co-Chief Executive Officer | ||||||||
/s/ Patrick J. Haveron | ||||||||
Patrick J. Haveron Co-Chief Executive Officer and Chief Financial Officer | ||||||||