Exhibit 99.1
MAX CAPITAL GROUP LTD. REPORTS FOURTH-QUARTER AND YEAR-END 2008 RESULTS
HAMILTON, BERMUDA, February 11, 2009—Max Capital Group Ltd. (NASDAQ: MXGL; BSX: MXGL BH) today reported a net loss for the three months ended December 31, 2008, of $94.1 million, or $1.67 per diluted share, compared to net income of $62.4 million, or $1.00 per diluted share, for the three months ended December 31, 2007. Net operating loss, which represents net income or loss excluding after-tax net realized gains and losses on fixed maturities and foreign exchange, for the three months ended December 31, 2008, was $85.0 million, or $1.51 per diluted share, compared to net operating income of $63.4 million, or $1.01 per diluted share, for the three months ended December 31, 2007.
For the year ended December 31, 2008, the Company had a net loss of $175.3 million, or $3.10 per diluted share, compared to net income of $303.2 million, or $4.75 per diluted share, for the year ended December 31, 2007. For the year ended December 31, 2008, the Company had a net operating loss of $146.7 million, or $2.59 per diluted share, compared to net operating income of $307.2 million, or $4.81 per diluted share, for the year ended December 31, 2007.
W. Marston (Marty) Becker, Chairman and Chief Executive Officer of Max Capital Group Ltd., said: “In 2008, solid performances by our underwriting units were overshadowed by losses in our alternative investment portfolio. In a year generally regarded as being a soft pricing year, as well as having the fourth-highest U.S. property losses from catastrophes, our losses have been limited compared to many of our peers and our overall combined ratios have remained attractive. Max Specialty, our U.S. excess and surplus lines operation, grew considerably during 2008 and we expanded our specialty insurance and reinsurance capabilities with our fourth-quarter acquisition of Max at Lloyd’s, which provided us entry to the world’s most famous specialty insurance marketplace. We believe this greater product and geographic diversification will allow us to take advantage of more favorable market conditions as they emerge, and will help limit the volatility of our future underwriting results.
“On the investment side, Max has not been immune to the turmoil of the financial markets, and the negative return and volatility experienced by our alternative investments was worse than we had previously modeled. Late last year we announced our intention to reduce and rebalance our alternative investment allocation and this process is well under way. Total alternative investments are less than 15% of invested assets at year-end and we expect them to be less than 12% by the end of March 2009. The decision to change our asset mix in this way reflects the growing strength and scale of our underwriting platforms.
“Looking ahead, while we expect the market to remain in transition throughout 2009, opportunities continue to arise. Max Capital and our individual platforms are well-positioned from both a business and capital standpoint to continue to compete effectively and to take advantage of market dislocations,” Becker concluded.
Gross premiums written from property and casualty underwriting for the three months ended December 31, 2008 were $224.1 million compared to $161.8 million for the three months ended December 31, 2007, an increase of 38.5%. The increase in gross premiums written principally reflects growth in the Company’s U.S. specialty insurance and Bermuda/Dublin insurance segments. Net premiums earned from property and casualty underwriting for the three months ended December 31, 2008 were $153.8 million compared to $124.6 million for the same period of 2007. Life and annuity reinsurance gross premiums written for the three months ended December 31, 2008 were $147.9 million compared to $238.4 million for the same period in 2007, reflecting two new reinsurance transactions written in 2008 compared to five in 2007.
Gross premiums written from property and casualty underwriting for the year ended December 31, 2008, were $1,012.1 million compared to $776.3 million for the year ended December 31, 2007, an increase of
30.4%. The increase in gross premiums written reflects year-over-year increases in all of the Company’s property and casualty segments, with particularly strong growth in the U.S. specialty insurance segment in its first full year of operations. Net premiums earned from property and casualty underwriting for the year ended December 31, 2008 were $571.9 million compared to $516.5 million for the same period of 2007, reflecting additional premiums written. Life and annuity reinsurance gross premiums written for the year ended December 31, 2008 were $242.2 million compared to $302.0 million for the same period in 2007, reflecting three new reinsurance transactions written in 2008 compared to six in 2007.
Net investment income for the three months ended December 31, 2008 decreased to $44.2 million from $49.4 million for the same period in 2007, which is attributable to an increased weighting year-over-year in lower-yielding cash balances and lower yields on fixed-maturity investments. Net investment income for the year ended December 31, 2008 decreased to $181.6 million from $188.2 million for the same period in 2007. Net losses on alternative investments for the three months ended December 31, 2008 were $88.0 million, for a negative 8.28% rate of return, compared to net gains of $50.0 million and a 4.27% rate of return for the same period in 2007. Net losses on alternative investments for the year ended December 31, 2008 were $233.0 million, for a negative 19.27% rate of return, compared to net gains of $186.7 million and a 16.97% rate of return for the same period in 2007. In accordance with the Company’s accounting policy, the unrealized mark-to-market gains and losses from the alternative investment portfolio are recorded through net income rather than as an adjustment to book value through other comprehensive income. Invested assets were $5.4 billion as of December 31, 2008, with an allocation of 85.9% to cash and fixed maturities and 14.1% to alternative investments. The Company’s liquidity position at December 31, 2008 is strong, with $949.4 million in cash and 70% of fixed maturities investments held in government, agency or AAA-rated securities.
Property and casualty net losses and loss expenses were $115.2 million with a loss ratio of 74.9% for the three months ended December 31, 2008, compared to $87.2 million with a loss ratio of 69.9% for the same period in 2007. Property and casualty net losses and loss expenses were $393.7 million with a loss ratio of 68.9% for the year ended December 31, 2008, compared to $330.4 million with a loss ratio of 64.0% for the same period in 2007. Net losses recognized in the year ended December 31, 2008 related to hurricane losses were $50.0 million (net of reinstatement premiums of $7.4 million). There were no catastrophe-related losses recorded in the fourth-quarter of 2008 and no comparable catastrophe-related losses in 2007. Results for the three months and year ended December 31, 2008 include net favorable development on prior period reserves of $2.1 million and $90.7 million, respectively. Favorable development reflects lower than expected claims emergence on prior year contracts, with the majority of the development occurring in casualty lines of business on 2006 and prior years. Net favorable development on prior period reserves in the three months and year ended December 31, 2007 were $6.7 million and $45.6 million, respectively.
Claims and policy benefits for life and annuity reinsurance for the three months and year ended December 31, 2008 were $164.4 million and $301.5 million, respectively, compared to $254.0 million and $345.6 million for the three months and year ended December 31, 2007, respectively. No material reserve changes were recognized in 2008. The decrease in 2008 for the quarter and the year is principally attributable to fewer life and annuity transactions written in 2008 compared to the same periods in 2007.
Acquisition costs for the three months ended December 31, 2008 were $16.6 million compared to $14.6 million for the three months ended December 31, 2007. Acquisition costs for the year ended December 31, 2008 were $52.4 million compared to $61.4 million for the year ended December 31, 2007. The decrease for the year is principally attributable to growth in the U.S. specialty insurance segment, which generally has lower acquisition costs, and changes in the business mix of the other segments.
Interest expense for the three months ended December 31, 2008 was $15.5 million, compared to $12.6 million for the same period in 2007. The increase in the fourth-quarter was principally due to fluctuations in interest rates on funds held for retrocessionaires. Interest expense for the year ended December 31, 2008 was $36.1 million, compared to $42.7 million for the same period in 2007. The decrease for the year principally reflects the reduction in interest expense on bank loans due to the decrease in LIBOR compared to the previous year.
Foreign exchange losses for the three months and year ended December 31, 2008 were $7.9 million and $9.9 million, respectively, compared to negligible foreign exchange losses in both 2007 periods. The Company’s 2008 foreign exchange losses were principally attributable to a build-up of British pounds prior to the acquisition of the Company’s Max at Lloyd’s segment, which is not expected to be a recurring item.
General and administrative expenses for the three months ended December 31, 2008, were $33.9 million compared to $27.0 million for the same period in 2007. General and administrative expenses for the year ended December 31, 2008, were $127.5 million, compared to $106.7 million for the same period in 2007. The increase for the quarter and the year principally reflects the growth of the Company’s U.S. specialty segment compared to the respective 2007 quarter and year, and expenses associated with acquisition activities undertaken in 2008.
During the three months ended December 31, 2008, under the Board-approved share repurchase authorization, the Company repurchased 287,900 of its common shares at an average price of $12.50 per share for a total amount of $3.6 million. For the year ended December 31, 2008, the Company repurchased 4,147,864 of its common shares at an average price of $26.48 per share for a total amount of $109.8 million. As of December 31, 2008, $69.8 million remains available under the Company’s share repurchase authorization. On December 31, 2008, the Company’s subsidiary, Max USA Holdings Ltd., repurchased $8.5 million principal amount of its senior notes for a total amount of $6.2 million, recognizing a gain of $2.3 million, and reducing the principal amount of senior notes outstanding to $91.5 million at December 31, 2008.
Shareholders’ equity was $1,280.3 million at December 31, 2008. Book value per share at December 31, 2008 was $22.94 per share, compared to $27.54 at December 31, 2007, a decrease of 16.7%. Diluted book value per share at December 31, 2008, was $22.46 compared to $25.59 at December 31, 2007, a decrease of 12.2%.
Max Capital Group Ltd., through its operating subsidiaries, provides specialty insurance and reinsurance products to corporations, public entities, property and casualty insurers and life and health insurers.
This release includes statements about future economic performance, finances, expectations, plans and prospects of the Company that constitute forward-looking statements for purposes of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materially from those suggested by such statements. For further information regarding cautionary statements and factors affecting future results, please refer to the Company’s most recent Annual Report on Form 10-K, Quarterly Reports on Form 10-Q filed subsequent to the Annual Report and other documents filed by the Company with the SEC. The Company undertakes no obligation to update or revise publicly any forward-looking statement whether as a result of new information, future developments or otherwise.
In presenting the Company’s results, management has included and discussed net operating income or loss per diluted share and net operating return on average shareholders’ equity. Such measures are “non-GAAP financial measures” as defined in Regulation G. Management believes that these non-GAAP financial measures, which may be defined differently by other companies, allow for a more complete understanding of the Company’s business. These measures, however, should not be viewed as a substitute for those determined in accordance with GAAP. The reconciliation of such measures to their respective most directly comparable GAAP financial measures is presented in the attached financial information in accordance with Regulation G.
Contacts | ||
Susan Spivak Bernstein | Roanne Kulakoff | |
Senior Vice President | Kekst and Company | |
susan.spivak@maxcapservices.com | roanne-kulakoff@kekst.com | |
1-441-293-8800 | 1-212-521-4837 |
MAX CAPITAL GROUP LTD.
CONSOLIDATED BALANCE SHEETS
(Expressed in thousands of United States Dollars, except per share and share amounts)
December 31, 2008 | December 31, 2007 | |||||||
(Unaudited) | ||||||||
ASSETS | ||||||||
Cash and cash equivalents | $ | 949,404 | $ | 397,656 | ||||
Fixed maturities, trading securities at fair value | 61,820 | — | ||||||
Fixed maturities, available for sale at fair value | 3,592,039 | 3,663,226 | ||||||
Alternative investments, at fair value | 753,658 | 1,061,734 | ||||||
Accrued interest income | 52,882 | 49,100 | ||||||
Premiums receivable | 554,845 | 432,965 | ||||||
Losses and benefits recoverable from reinsurers | 846,622 | 578,333 | ||||||
Deferred acquisition costs | 51,337 | 44,187 | ||||||
Prepaid reinsurance premiums | 192,889 | 130,071 | ||||||
Trades pending settlement | 85,727 | 112,423 | ||||||
Other assets | 110,772 | 68,834 | ||||||
Total assets | $ | 7,251,995 | $ | 6,538,529 | ||||
LIABILITIES | ||||||||
Property and casualty losses | $ | 2,938,171 | $ | 2,333,877 | ||||
Life and annuity benefits | 1,366,976 | 1,203,509 | ||||||
Deposit liabilities | 219,260 | 220,513 | ||||||
Funds withheld from reinsurers | 164,157 | 169,263 | ||||||
Unearned property and casualty premiums | 574,134 | 439,581 | ||||||
Reinsurance balances payable | 160,686 | 99,221 | ||||||
Accounts payable and accrued expenses | 81,916 | 58,892 | ||||||
Bank loans | 375,000 | 330,000 | ||||||
Senior notes | 91,364 | 99,779 | ||||||
Total liabilities | 5,971,664 | 4,954,635 | ||||||
SHAREHOLDERS’ EQUITY | ||||||||
Preferred shares (par value $1.00) 20,000,000 shares authorized; no shares issued or outstanding | — | — | ||||||
Common shares (par value $1.00) 200,000,000 shares authorized; 55,805,790 (2007 -57,515,075) shares issued and outstanding | 55,806 | 57,515 | ||||||
Additional paid-in capital | 763,391 | 844,455 | ||||||
Accumulated other comprehensive loss | (45,399 | ) | (20,341 | ) | ||||
Retained earnings | 506,533 | 702,265 | ||||||
Total shareholders’ equity | 1,280,331 | 1,583,894 | ||||||
Total liabilities and shareholders’ equity | $ | 7,251,995 | $ | 6,538,529 | ||||
Book Value Per Share | $ | 22.94 | $ | 27.54 | ||||
Diluted Book Value Per Share | $ | 22.46 | $ | 25.59 | ||||
Diluted Shares Outstanding | 57,017,157 | 61,901,228 |
MAX CAPITAL GROUP LTD.
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (Unaudited)
(Expressed in thousands of United States Dollars, except per share and share amounts)
Three Months Ended December 31 | Years Ended December 31 | |||||||||||||||
2008 | 2007 | 2008 | 2007 | |||||||||||||
REVENUES | ||||||||||||||||
Gross premiums written | $ | 372,065 | $ | 400,197 | $ | 1,254,250 | $ | 1,078,286 | ||||||||
Reinsurance premiums ceded | (114,196 | ) | (78,176 | ) | (414,047 | ) | (281,696 | ) | ||||||||
Net premiums written | $ | 257,869 | $ | 322,021 | $ | 840,203 | $ | 796,590 | ||||||||
Earned premiums | $ | 409,572 | $ | 433,522 | $ | 1,170,248 | $ | 1,074,173 | ||||||||
Earned premiums ceded | (108,073 | ) | (70,604 | ) | (356,738 | ) | (256,268 | ) | ||||||||
Net premiums earned | 301,499 | 362,918 | 813,510 | 817,905 | ||||||||||||
Net investment income | 44,226 | 49,355 | 181,624 | 188,206 | ||||||||||||
Net (losses) gains on alternative investments | (88,003 | ) | 50,035 | (232,993 | ) | 186,721 | ||||||||||
Net realized losses on fixed maturities | (948 | ) | (1,042 | ) | (18,859 | ) | (4,017 | ) | ||||||||
Net realized gain on retirement of senior notes | 2,245 | — | 2,245 | — | ||||||||||||
Other income | 457 | 158 | 1,458 | 745 | ||||||||||||
Total revenues | 259,476 | 461,424 | 746,985 | 1,189,560 | ||||||||||||
LOSSES AND EXPENSES | ||||||||||||||||
Net losses and loss expenses | 115,160 | 87,165 | 393,745 | 330,394 | ||||||||||||
Claims and policy benefits | 164,351 | 253,962 | 301,526 | 345,602 | ||||||||||||
Acquisition costs | 16,635 | 14,597 | 52,379 | 61,360 | ||||||||||||
Interest expense | 15,542 | 12,555 | 36,089 | 42,663 | ||||||||||||
Foreign exchange losses | 7,889 | 10 | 9,873 | 25 | ||||||||||||
General and administrative expenses | 33,924 | 26,963 | 127,459 | 106,689 | ||||||||||||
Total losses and expenses | 353,501 | 395,252 | 921,071 | 886,733 | ||||||||||||
(LOSS) INCOME BEFORE TAXES | (94,025 | ) | 66,172 | (174,086 | ) | 302,827 | ||||||||||
Income tax expense (benefit) | 58 | 3,822 | 1,232 | (422 | ) | |||||||||||
NET (LOSS) INCOME | (94,083 | ) | 62,350 | (175,318 | ) | 303,249 | ||||||||||
Change in net unrealized gains and losses on available for sale securities, net of tax | 118,821 | 24,841 | 9,882 | 369 | ||||||||||||
Foreign currency translation adjustment | (17,471 | ) | (1,557 | ) | (34,940 | ) | 978 | |||||||||
COMPREHENSIVE INCOME (LOSS) | $ | 7,267 | $ | 85,634 | $ | (200,376 | ) | $ | 304,596 | |||||||
Basic earnings per share | $ | (1.67 | ) | $ | 1.07 | $ | (3.10 | ) | $ | 5.06 | ||||||
Diluted earnings per share | $ | (1.67 | ) | $ | 1.00 | $ | (3.10 | ) | $ | 4.75 | ||||||
Diluted net operating earnings per share (1) | $ | (1.51 | ) | $ | 1.01 | $ | (2.59 | ) | $ | 4.81 | ||||||
Weighted average shares outstanding - basic | 56,296,064 | 58,480,101 | 56,565,588 | 59,892,414 | ||||||||||||
Weighted average shares outstanding - diluted (1) | 56,296,064 | 62,534,171 | 56,565,588 | 63,839,232 | ||||||||||||
(1) | In accordance with U.S. generally accepted accounting principles, diluted earnings per share calculations use weighted average common shares outstanding - basic, for periods with a net loss |
MAX CAPITAL GROUP LTD.
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY (Unaudited)
(Expressed in thousands of United States Dollars)
Years Ended December 31 | ||||||||
2008 | 2007 | |||||||
Preferred shares | ||||||||
Balance, beginning of year | $ | — | $ | — | ||||
Balance, end of year | — | — | ||||||
Common shares | ||||||||
Balance, beginning of year | 57,515 | 60,277 | ||||||
Issuance of shares | 2,439 | 1,527 | ||||||
Repurchase of shares | (4,148 | ) | (4,289 | ) | ||||
Balance, end of year | 55,806 | 57,515 | ||||||
Additional paid-in capital | ||||||||
Balance, beginning of year | 844,455 | 933,292 | ||||||
Issuance of common shares, net | 4,379 | 3,449 | ||||||
Stock based compensation expense | 20,248 | 17,780 | ||||||
Repurchase of shares | (105,691 | ) | (110,066 | ) | ||||
Balance, end of year | 763,391 | 844,455 | ||||||
Accumulated other comprehensive loss | ||||||||
Balance, beginning of year | (20,341 | ) | (21,688 | ) | ||||
Holding losses on available for sale securities arising in year, net of tax | (5,327 | ) | (3,630 | ) | ||||
Net realized losses on available for sale securities included in net income, net of tax | 15,209 | 3,999 | ||||||
Currency translation adjustments | (34,940 | ) | 978 | |||||
Balance, end of year | (45,399 | ) | (20,341 | ) | ||||
Retained earnings | ||||||||
Balance, beginning of year | 702,265 | 418,180 | ||||||
Net (loss) income | (175,318 | ) | 303,249 | |||||
Dividends paid | (20,414 | ) | (19,164 | ) | ||||
Balance, end of year | 506,533 | 702,265 | ||||||
Total shareholders’ equity | $ | 1,280,331 | $ | 1,583,894 | ||||
MAX CAPITAL GROUP LTD.
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
(Expressed in thousands of United States Dollars)
Years Ended December 31 | ||||||||
2008 | 2007 | |||||||
OPERATING ACTIVITIES | ||||||||
Net (loss) income | $ | (175,318 | ) | $ | 303,249 | |||
Adjustments to reconcile net income to net cash from operating activities: | ||||||||
Stock based compensation | 20,248 | 17,780 | ||||||
Amortization of premium on fixed maturities | 5,095 | 5,146 | ||||||
Accretion of deposit liabilities | 4,507 | 4,607 | ||||||
Net losses (gains) on alternative investments | 232,993 | (186,721 | ) | |||||
Net realized losses on fixed maturities | 18,859 | 4,017 | ||||||
Net realized gain on retirement of senior notes | (2,245 | ) | — | |||||
Changes in: | ||||||||
Accrued interest income | (3,498 | ) | (10,178 | ) | ||||
Premiums receivable | (52,844 | ) | (42,076 | ) | ||||
Losses and benefits recoverable from reinsurers | (223,188 | ) | (37,102 | ) | ||||
Deferred acquisition costs | 2,934 | 4,877 | ||||||
Prepaid reinsurance premiums | (55,801 | ) | (25,698 | ) | ||||
Trades pending settlement | 26,696 | 24,140 | ||||||
Other assets | (3,006 | ) | (3,607 | ) | ||||
Property and casualty losses | 373,625 | (11,348 | ) | |||||
Life and annuity benefits | 200,434 | 252,601 | ||||||
Funds withheld from reinsurers | (5,106 | ) | (85,460 | ) | ||||
Unearned property and casualty premiums | 84,563 | 4,128 | ||||||
Reinsurance balances payable | 46,934 | 19,715 | ||||||
Accounts payable and accrued expenses | 12,799 | 14,405 | ||||||
Cash provided by operating activities | 508,681 | 252,475 | ||||||
INVESTING ACTIVITIES | ||||||||
Purchases of fixed maturities | (964,606 | ) | (1,459,418 | ) | ||||
Sales of fixed maturities | 438,634 | 428,522 | ||||||
Redemptions of fixed maturities | 514,988 | 466,988 | ||||||
Net sales of alternative investments | 75,083 | 190,824 | ||||||
Acquisition of subsidiaries, net of cash acquired | 103,155 | (28,400 | ) | |||||
Cash provided by (used in) investing activities | 167,254 | (401,484 | ) | |||||
FINANCING ACTIVITIES | ||||||||
Net proceeds from issuance of common shares | 6,818 | 4,976 | ||||||
Repurchase of common shares | (109,839 | ) | (114,355 | ) | ||||
Net proceeds from bank loans | 45,000 | 120,000 | ||||||
Net (repayment) proceeds from issuance of senior notes | (8,415 | ) | 99,497 | |||||
Dividends paid | (20,414 | ) | (19,163 | ) | ||||
Additions to deposit liabilities | 16,681 | 19,253 | ||||||
Payment of deposit liabilities | (23,000 | ) | (9,630 | ) | ||||
Cash (used in) provided by financing activities | (93,169 | ) | 100,578 | |||||
Effect of exchange rate on cash | (31,018 | ) | 4,192 | |||||
Net increase in cash and cash equivalents | 551,748 | (44,239 | ) | |||||
Cash and cash equivalents, beginning of year | 397,656 | 441,895 | ||||||
CASH AND CASH EQUIVALENTS, END OF YEAR | $ | 949,404 | $ | 397,656 | ||||
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Interest paid totaled $21,416 and $21,514 for the years ended December 31, 2008 and 2007, respectively.
Corporate taxes paid totaled $199 and $1,879 for the years ended December 31, 2008 and 2007, respectively.
MAX CAPITAL GROUP LTD.
SCHEDULE OF SUPPLEMENTAL UNDERWRITING DATA–YEARS ENDED DECEMBER 31, 2008 (Unaudited)
(Expressed in thousands of United States Dollars)
Year to Date Segment Information:
Property & Casualty | Life & Annuity | Corporate | Consolidated | |||||||||||||||||||||||||||||
Bermuda/Dublin | U.S. Specialty | Max at Lloyd’s | Total | Reinsurance | ||||||||||||||||||||||||||||
Reinsurance | Insurance | |||||||||||||||||||||||||||||||
Gross premiums written | $ | 419,509 | $ | 389,368 | $ | 194,353 | $ | 8,844 | $ | 1,012,074 | $ | 242,176 | $ | — | $ | 1,254,250 | ||||||||||||||||
Reinsurance premiums ceded | (92,421 | ) | (198,098 | ) | (118,710 | ) | (4,294 | ) | (413,523 | ) | (524 | ) | — | (414,047 | ) | |||||||||||||||||
Net premiums written | $ | 327,088 | $ | 191,270 | $ | 75,643 | $ | 4,550 | $ | 598,551 | $ | 241,652 | $ | — | $ | 840,203 | ||||||||||||||||
Earned premiums | $ | 426,157 | $ | 371,080 | $ | 121,172 | $ | 9,663 | $ | 928,072 | $ | 242,176 | $ | — | $ | 1,170,248 | ||||||||||||||||
Earned premiums ceded | (84,366 | ) | (189,125 | ) | (77,374 | ) | (5,349 | ) | (356,214 | ) | (524 | ) | — | (356,738 | ) | |||||||||||||||||
Net premiums earned | 341,791 | 181,955 | 43,798 | 4,314 | 571,858 | 241,652 | — | 813,510 | ||||||||||||||||||||||||
Net investment income | 36,069 | 18,437 | 7,235 | 542 | 62,283 | 40,058 | 79,283 | 181,624 | ||||||||||||||||||||||||
Net losses on alternative investments | (51,096 | ) | (23,499 | ) | — | — | (74,595 | ) | (100,921 | ) | (57,477 | ) | (232,993 | ) | ||||||||||||||||||
Net realized losses on fixed maturities | — | — | (523 | ) | 508 | (15 | ) | — | (18,844 | ) | (18,859 | ) | ||||||||||||||||||||
Net realized gain on retirement of senior notes | — | — | — | — | — | — | 2,245 | 2,245 | ||||||||||||||||||||||||
Other income | — | 1,112 | 303 | 160 | 1,575 | — | (117 | ) | 1,458 | |||||||||||||||||||||||
Total revenues | 326,764 | 178,005 | 50,813 | 5,524 | 561,106 | 180,789 | 5,090 | 746,985 | ||||||||||||||||||||||||
Net losses and loss expenses | 218,749 | 142,150 | 30,376 | 2,470 | 393,745 | — | — | 393,745 | ||||||||||||||||||||||||
Claims and policy benefits | — | — | 301,526 | — | 301,526 | |||||||||||||||||||||||||||
Acquisition costs | 51,328 | (2,810 | ) | 3,039 | 981 | 52,538 | (159 | ) | — | 52,379 | ||||||||||||||||||||||
Interest expense | 7,516 | — | — | — | 7,516 | 6,818 | 21,755 | 36,089 | ||||||||||||||||||||||||
Foreign exchange (gains) losses | — | — | — | (382 | ) | (382 | ) | — | 10,255 | 9,873 | ||||||||||||||||||||||
General and administrative expenses | 28,548 | 21,101 | 27,235 | 2,525 | 79,409 | 2,917 | 45,133 | 127,459 | ||||||||||||||||||||||||
Total losses and expenses | 306,141 | 160,441 | 60,650 | 5,594 | 532,826 | 311,102 | 77,143 | 921,071 | ||||||||||||||||||||||||
Income (loss) before taxes | $ | 20,623 | $ | 17,564 | $ | (9,837 | ) | $ | (70 | ) | $ | 28,280 | $ | (130,313 | ) | $ | (72,053 | ) | $ | (174,086 | ) | |||||||||||
Loss Ratio (a) | 64.0 | % | 78.1 | % | 69.4 | % | 57.3 | % | 68.9 | % | ||||||||||||||||||||||
Combined Ratio (b) | 87.4 | % | 88.2 | % | 138.5 | % | 138.5 | % | 91.9 | % |
SCHEDULE OF SUPPLEMENTAL UNDERWRITING DATA–THREE MONTHS ENDED DECEMBER 31, 2008 (Unaudited)
(Expressed in thousands of United States Dollars)
Quarter Segment Information:
Property & Casualty | Life & Annuity | Corporate | Consolidated | |||||||||||||||||||||||||||||
Bermuda/Dublin | U.S. Specialty | Max at Lloyd’s | Total | Reinsurance | ||||||||||||||||||||||||||||
Reinsurance | Insurance | |||||||||||||||||||||||||||||||
Gross premiums written | $ | 42,025 | $ | 113,080 | $ | 60,191 | $ | 8,844 | $ | 224,140 | $ | 147,925 | $ | — | $ | 372,065 | ||||||||||||||||
Reinsurance premiums ceded | (7,288 | ) | (64,999 | ) | (37,376 | ) | (4,294 | ) | (113,957 | ) | (239 | ) | — | (114,196 | ) | |||||||||||||||||
Net premiums written | $ | 34,737 | $ | 48,081 | $ | 22,815 | $ | 4,550 | $ | 110,183 | $ | 147,686 | $ | — | $ | 257,869 | ||||||||||||||||
Earned premiums | $ | 115,494 | $ | 92,988 | $ | 43,502 | $ | 9,663 | $ | 261,647 | $ | 147,925 | $ | — | $ | 409,572 | ||||||||||||||||
Earned premiums ceded | (26,549 | ) | (48,134 | ) | (27,803 | ) | (5,349 | ) | (107,835 | ) | (238 | ) | — | (108,073 | ) | |||||||||||||||||
Net premiums earned | 88,945 | 44,854 | 15,699 | 4,314 | 153,812 | 147,687 | — | 301,499 | ||||||||||||||||||||||||
Net investment income | 8,272 | 5,124 | 1,672 | 542 | 15,610 | 10,126 | 18,490 | 44,226 | ||||||||||||||||||||||||
Net losses on alternative investments | (21,458 | ) | (9,923 | ) | — | — | (31,381 | ) | (42,170 | ) | (14,452 | ) | (88,003 | ) | ||||||||||||||||||
Net realized losses on fixed maturities | — | — | — | 508 | 508 | — | (1,456 | ) | (948 | ) | ||||||||||||||||||||||
Net realized gain on retirement of senior notes | — | — | — | — | — | — | 2,245 | 2,245 | ||||||||||||||||||||||||
Other income | — | — | 163 | 160 | 323 | — | 134 | 457 | ||||||||||||||||||||||||
Total revenues | 75,759 | 40,055 | 17,534 | 5,524 | 138,872 | 115,643 | 4,961 | 259,476 | ||||||||||||||||||||||||
Net losses and loss expenses | 68,423 | 33,331 | 10,936 | 2,470 | 115,160 | — | — | 115,160 | ||||||||||||||||||||||||
Claims and policy benefits | — | — | — | — | — | 164,351 | — | 164,351 | ||||||||||||||||||||||||
Acquisition costs | 16,154 | (865 | ) | 980 | 981 | 17,250 | (615 | ) | — | 16,635 | ||||||||||||||||||||||
Interest expense | 5,134 | — | — | — | 5,134 | 4,722 | 5,686 | 15,542 | ||||||||||||||||||||||||
Foreign exchange (gains) losses | — | — | — | (382 | ) | (382 | ) | — | 8,271 | 7,889 | ||||||||||||||||||||||
General and administrative expenses | 6,567 | 5,049 | 6,636 | 2,525 | 20,777 | 644 | 12,503 | 33,924 | ||||||||||||||||||||||||
Total losses and expenses | 96,278 | 37,515 | 18,552 | 5,594 | 157,939 | 169,102 | 26,460 | 353,501 | ||||||||||||||||||||||||
Income (loss) before taxes | $ | (20,519 | ) | $ | 2,540 | $ | (1,018 | ) | $ | (70 | ) | $ | (19,067 | ) | $ | (53,459 | ) | $ | (21,499 | ) | $ | (94,025 | ) | |||||||||
Loss Ratio (a) | 76.9 | % | 74.3 | % | 69.7 | % | 57.3 | % | 74.9 | % | ||||||||||||||||||||||
Combined Ratio (b) | 102.5 | % | 83.6 | % | 118.2 | % | 138.5 | % | 99.6 | % |
(a) | The loss ratio is calculated by dividing net losses and loss expenses by net premiums earned. |
(b) | The combined ratio is calculated by dividing the sum of net losses and loss expenses, acquisition costs and general and administrative expenses by net premiums earned. |
MAX CAPITAL GROUP LTD.
SCHEDULE OF SUPPLEMENTAL UNDERWRITING DATA–YEARS ENDED DECEMBER 31, 2007 (Unaudited)
(Expressed in thousands of United States Dollars)
Year to Date Segment Information:
Property & Casualty | Life & Annuity | Corporate | Consolidated | |||||||||||||||||||||||||
Bermuda/Dublin | U.S. Specialty | Total | Reinsurance | |||||||||||||||||||||||||
Reinsurance | Insurance | |||||||||||||||||||||||||||
Gross premiums written | $ | 345,156 | $ | 382,926 | $ | 48,243 | $ | 776,325 | $ | 301,961 | $ | — | $ | 1,078,286 | ||||||||||||||
Reinsurance premiums ceded | (44,565 | ) | (201,987 | ) | (34,610 | ) | (281,162 | ) | (534 | ) | — | (281,696 | ) | |||||||||||||||
Net premiums written | $ | 300,591 | $ | 180,939 | $ | 13,633 | $ | 495,163 | $ | 301,427 | $ | — | $ | 796,590 | ||||||||||||||
Earned premiums | $ | 356,448 | $ | 398,776 | $ | 16,988 | $ | 772,212 | $ | 301,961 | $ | — | $ | 1,074,173 | ||||||||||||||
Earned premiums ceded | (43,501 | ) | (199,223 | ) | (13,010 | ) | (255,734 | ) | (534 | ) | — | (256,268 | ) | |||||||||||||||
Net premiums earned | 312,947 | 199,553 | 3,978 | 516,478 | 301,427 | — | 817,905 | |||||||||||||||||||||
Net investment income | 41,025 | 16,160 | 5,974 | 63,159 | 33,936 | 91,111 | 188,206 | |||||||||||||||||||||
Net gains on alternative investments | 53,021 | 14,271 | — | 67,292 | 60,713 | 58,716 | 186,721 | |||||||||||||||||||||
Net realized losses on fixed maturities | — | — | — | — | — | (4,017 | ) | (4,017 | ) | |||||||||||||||||||
Other income | — | — | — | — | — | 745 | 745 | |||||||||||||||||||||
Total revenues | 406,993 | 229,984 | 9,952 | 646,929 | 396,076 | 146,555 | 1,189,560 | |||||||||||||||||||||
Net losses and loss expenses | 173,317 | 153,816 | 3,261 | 330,394 | — | — | 330,394 | |||||||||||||||||||||
Claims and policy benefits | — | — | — | — | 345,602 | — | 345,602 | |||||||||||||||||||||
Acquisition costs | 60,910 | (1,162 | ) | 376 | 60,124 | 1,236 | — | 61,360 | ||||||||||||||||||||
Interest expense | 11,890 | — | — | 11,890 | 6,864 | 23,909 | 42,663 | |||||||||||||||||||||
Foreign exchange losses | — | — | — | — | — | 25 | 25 | |||||||||||||||||||||
General and administrative expenses | 28,394 | 19,348 | 17,430 | 65,172 | 2,813 | 38,704 | 106,689 | |||||||||||||||||||||
Total losses and expenses | 274,511 | 172,002 | 21,067 | 467,580 | 356,515 | 62,638 | 886,733 | |||||||||||||||||||||
Income (loss) before taxes | $ | 132,482 | $ | 57,982 | $ | (11,115 | ) | $ | 179,349 | $ | 39,561 | $ | 83,917 | $ | 302,827 | |||||||||||||
Loss Ratio (a) | 55.4 | % | 77.1 | % | 82.0 | % | 64.0 | % | ||||||||||||||||||||
Combined Ratio (b) | 83.9 | % | 86.2 | % | n/a | 88.2 | % |
SCHEDULE OF SUPPLEMENTAL UNDERWRITING DATA–THREE MONTHS ENDED DECEMBER 31, 2007 (Unaudited)
(Expressed in thousands of United States Dollars)
Quarter Segment Information:
Property & Casualty | Life & Annuity | Corporate | Consolidated | |||||||||||||||||||||||||
Bermuda/Dublin | U.S. Specialty | Total | Reinsurance | |||||||||||||||||||||||||
Reinsurance | Insurance | |||||||||||||||||||||||||||
Gross premiums written | $ | 36,391 | $ | 98,848 | $ | 26,551 | $ | 161,790 | $ | 238,407 | $ | — | $ | 400,197 | ||||||||||||||
Reinsurance premiums ceded | (2,936 | ) | (55,568 | ) | (19,536 | ) | (78,040 | ) | (136 | ) | — | (78,176 | ) | |||||||||||||||
Net premiums written | $ | 33,455 | $ | 43,280 | $ | 7,015 | $ | 83,750 | $ | 238,271 | $ | — | $ | 322,021 | ||||||||||||||
Earned premiums | $ | 84,870 | $ | 98,792 | $ | 11,453 | $ | 195,115 | $ | 238,407 | $ | — | $ | 433,522 | ||||||||||||||
Earned premiums ceded | (12,970 | ) | (48,369 | ) | (9,130 | ) | (70,469 | ) | (135 | ) | — | (70,604 | ) | |||||||||||||||
Net premiums earned | 71,900 | 50,423 | 2,323 | 124,646 | 238,272 | — | 362,918 | |||||||||||||||||||||
Net investment income | 9,199 | 4,104 | 2,118 | 15,421 | 11,675 | 22,259 | 49,355 | |||||||||||||||||||||
Net gains on alternative investments | 11,656 | 3,755 | — | 15,411 | 17,399 | 17,225 | 50,035 | |||||||||||||||||||||
Net realized losses on fixed maturities | — | — | — | — | — | (1,042 | ) | (1,042 | ) | |||||||||||||||||||
Other income | — | — | — | — | — | 158 | 158 | |||||||||||||||||||||
Total revenues | 92,755 | 58,282 | 4,441 | 155,478 | 267,346 | 38,600 | 461,424 | |||||||||||||||||||||
Net losses and loss expenses | 41,833 | 43,017 | 2,315 | 87,165 | — | — | 87,165 | |||||||||||||||||||||
Claims and policy benefits | — | — | — | — | 253,962 | — | 253,962 | |||||||||||||||||||||
Acquisition costs | 13,663 | (190 | ) | 472 | 13,945 | 652 | — | 14,597 | ||||||||||||||||||||
Interest expense | 2,971 | — | — | 2,971 | 2,496 | 7,088 | 12,555 | |||||||||||||||||||||
Foreign exchange losses | — | — | — | — | — | 10 | 10 | |||||||||||||||||||||
General and administrative expenses | 7,966 | 5,939 | 3,281 | 17,186 | 687 | 9,090 | 26,963 | |||||||||||||||||||||
Total losses and expenses | 66,433 | 48,766 | 6,068 | 121,267 | 257,797 | 16,188 | 395,252 | |||||||||||||||||||||
Income (loss) before taxes | $ | 26,322 | $ | 9,516 | $ | (1,627 | ) | $ | 34,211 | $ | 9,549 | $ | 22,412 | $ | 66,172 | |||||||||||||
Loss Ratio (a) | 58.2 | % | 85.3 | % | 99.7 | % | 69.9 | % | ||||||||||||||||||||
Combined Ratio (b) | 88.3 | % | 96.7 | % | n/a | 94.9 | % |
(a) | The loss ratio is calculated by dividing net losses and loss expenses by net premiums earned. |
(b) | The combined ratio is calculated by dividing the sum of net losses and loss expenses, acquisition costs and general and administrative expenses by net premiums earned. |
MAX CAPITAL GROUP LTD.
SCHEDULE OF SUPPLEMENTAL PREMIUM DATA–YEAR ENDED DECEMBER 31, 2008 (Unaudited)
(Expressed in thousands of United States Dollars)
Gross Premiums Written by Type of Risk:
Year Ended December 31, 2008 | Year Ended December 31, 2007 | |||||||||||
Gross Premiums Written | Percentage of Total Premiums Written | Gross Premiums Written | Percentage of Total Premiums Written | |||||||||
Property & Casualty: | ||||||||||||
Bermuda/Dublin Reinsurance: | ||||||||||||
Agriculture | $ | 80,454 | 6.4 | % | $ | 985 | 0.1 | % | ||||
Aviation | 31,555 | 2.5 | % | 34,095 | 3.1 | % | ||||||
Excess Liability | 10,165 | 0.8 | % | 16,716 | 1.6 | % | ||||||
Medical Malpractice | 77,133 | 6.2 | % | 53,138 | 4.9 | % | ||||||
Other | 1,934 | 0.2 | % | 6,031 | 0.6 | % | ||||||
Professional Liability | 38,718 | 3.1 | % | 33,640 | 3.1 | % | ||||||
Property | 99,280 | 7.9 | % | 89,197 | 8.3 | % | ||||||
Marine & Energy | 12,769 | 1.0 | % | 47,077 | 4.4 | % | ||||||
Whole Account | 12,906 | 1.0 | % | 15,080 | 1.4 | % | ||||||
Workers’ Compensation | 54,595 | 4.4 | % | 49,197 | 4.5 | % | ||||||
419,509 | 33.5 | % | 345,156 | 32.0 | % | |||||||
Bermuda/Dublin Insurance: | ||||||||||||
Aviation | 53,034 | 4.2 | % | 40,934 | 3.8 | % | ||||||
Excess Liability | 123,490 | 9.8 | % | 131,515 | 12.2 | % | ||||||
Professional Liability | 159,140 | 12.7 | % | 157,450 | 14.6 | % | ||||||
Property | 53,704 | 4.3 | % | 53,027 | 4.9 | % | ||||||
389,368 | 31.0 | % | 382,926 | 35.5 | % | |||||||
U.S. Specialty: | ||||||||||||
Property | 95,848 | 7.6 | % | 34,721 | 3.2 | % | ||||||
General Casualty | 59,838 | 4.8 | % | 12,302 | 1.2 | % | ||||||
Marine | 38,667 | 3.1 | % | 1,220 | 0.1 | % | ||||||
194,353 | 15.5 | % | 48,243 | 4.5 | % | |||||||
Max at Lloyd’s: | ||||||||||||
Property | 1,446 | 0.1 | % | — | 0.0 | % | ||||||
Personal Accident | 408 | 0.0 | % | — | 0.0 | % | ||||||
Financial Institutions | 4,062 | 0.3 | % | — | 0.0 | % | ||||||
Professional Liability | 2,928 | 0.3 | % | — | 0.0 | % | ||||||
Other | — | 0.0 | % | — | 0.0 | % | ||||||
8,844 | 0.7 | % | — | 0.0 | % | |||||||
Aggregate Property & Casualty | $ | 1,012,074 | 80.7 | % | $ | 776,325 | 72.0 | % | ||||
Life & Annuity: | ||||||||||||
Annuity | $ | 239,555 | 19.1 | % | $ | 299,261 | 27.8 | % | ||||
Health | — | 0.0 | % | 29 | 0.0 | % | ||||||
Life | 2,621 | 0.2 | % | 2,671 | 0.2 | % | ||||||
Aggregate Life & Annuity | 242,176 | 19.3 | % | 301,961 | 28.0 | % | ||||||
Aggregate P&C and Life & Annuity | $ | 1,254,250 | 100.0 | % | $ | 1,078,286 | 100.0 | % | ||||
MAX CAPITAL GROUP LTD.
NON-GAAP FINANCIAL MEASURE RECONCILIATIONS (Unaudited)
Net Operating Income per Diluted Share
(Expressed in thousands of United States Dollars, except per share and share amounts)
Three Months Ended December 31 | Year Ended December 31 | |||||||||||||
2008 | 2007 | 2008 | 2007 | |||||||||||
Net (loss) income | $ | (94,083 | ) | $ | 62,350 | $ | (175,318 | ) | $ | 303,249 | ||||
Net realized losses on fixed maturities, net of tax | 1,108 | 1,046 | 18,640 | 3,999 | ||||||||||
Foreign exchange losses, net of tax | 7,999 | 10 | 9,982 | 25 | ||||||||||
Net operating (loss) income | $ | (84,976 | ) | $ | 63,406 | $ | (146,696 | ) | $ | 307,273 | ||||
Net (loss) income per diluted share (1) | $ | (1.67 | ) | $ | 1.00 | $ | (3.10 | ) | $ | 4.75 | ||||
Net realized losses on fixed maturities, net of tax | 0.02 | 0.01 | 0.33 | 0.06 | ||||||||||
Foreign exchange losses, net of tax | 0.14 | — | 0.18 | — | ||||||||||
Net operating (loss) income per diluted share (1) | $ | (1.51 | ) | $ | 1.01 | $ | (2.59 | ) | $ | 4.81 | ||||
Weighted average shares outstanding - basic | 56,296,064 | 58,480,101 | 56,565,588 | 59,892,414 | ||||||||||
Weighted average shares outstanding - diluted (1) | 56,296,064 | 62,534,171 | 56,565,588 | 63,839,232 |
(1) | In accordance with U.S. generally accepted accounting principles, diluted earnings per share calculations use weighted average common shares outstanding - basic, for periods with a net loss |
Annualized Return and Annualized Net Operating Return on Average Shareholders’ Equity
(Expressed in thousands of United States Dollars)
Three Months Ended December 31 | Year Ended December 31 | |||||||||||||||
2008 | 2007 | 2008 | 2007 | |||||||||||||
Net (loss) income | $ | (94,083 | ) | $ | 62,350 | $ | (175,318 | ) | $ | 303,249 | ||||||
Annualized net (loss) income | (376,332 | ) | 249,400 | (175,318 | ) | 303,249 | ||||||||||
Net operating (loss) income | $ | (84,976 | ) | $ | 63,406 | $ | (146,696 | ) | $ | 307,273 | ||||||
Annualized net operating (loss) income | (339,904 | ) | 253,624 | (146,696 | ) | 307,273 | ||||||||||
Beginning shareholders’ equity | $ | 1,274,482 | $ | 1,533,596 | $ | 1,583,894 | $ | 1,390,061 | ||||||||
Ending shareholders’ equity | 1,280,331 | 1,583,894 | 1,280,331 | 1,583,894 | ||||||||||||
Average shareholders’ equity | $ | 1,277,407 | $ | 1,558,745 | $ | 1,432,113 | $ | 1,486,978 | ||||||||
Annualized return on average shareholders’ equity | -29.5 | % | 16.0 | % | -12.2 | % | 20.4 | % | ||||||||
Annualized net operating return on average shareholders’ equity | -26.6 | % | 16.3 | % | -10.2 | % | 20.7 | % |
MAX CAPITAL GROUP LTD.
SCHEDULE OF SUPPLEMENTAL INVESTMENT DATA–YEAR ENDED DECEMBER 31, 2008 (Unaudited)
Selected Investment Return Data:
Periodic Rate of Return | |||||||||||||||
Fair Value* | Investment Distribution | Last 3 Months | Year to Date | Last 60 months** | |||||||||||
Cash and Fixed Maturities | $ | 4,603,263 | 85.9 | % | 4.09 | % | 4.66 | % | 4.27 | % | |||||
Convertible Arbitrage | 10,650 | 0.2 | % | 1.96 | % | -12.19 | % | -3.27 | % | ||||||
Distressed Securities | 115,900 | 2.2 | % | -10.25 | % | -19.39 | % | 8.17 | % | ||||||
Diversified Arbitrage | 46,034 | 0.9 | % | -21.88 | % | -39.72 | % | -4.14 | % | ||||||
Emerging Markets | 39,683 | 0.7 | % | -21.54 | % | -30.59 | % | 5.07 | % | ||||||
Event-Driven Arbitrage | 75,205 | 1.4 | % | -18.06 | % | -30.31 | % | 5.29 | % | ||||||
Fixed Income Arbitrage | 30,881 | 0.6 | % | 5.45 | % | 20.43 | % | 9.63 | % | ||||||
Global Macro | 87,304 | 1.6 | % | -0.04 | % | -5.63 | % | 4.88 | % | ||||||
Long / Short Credit | 38,581 | 0.7 | % | -8.83 | % | -13.34 | % | 4.60 | % | ||||||
Long / Short Equity | 290,224 | 5.4 | % | -0.86 | % | -13.66 | % | 5.00 | % | ||||||
Opportunistic | 14,746 | 0.3 | % | -25.39 | % | -41.25 | % | 6.64 | % | ||||||
MDS **** | 749,208 | 14.0 | % | -8.31 | % | -19.38 | % | 3.08 | % | ||||||
Reinsurance Private Equity | 4,450 | 0.1 | % | -1.55 | % | 12.91 | % | 8.26 | % | ||||||
Alternative Investments | $ | 753,658 | 14.1 | % | -8.28 | % | -19.27 | % | 2.47 | % | |||||
Total Investments | $ | 5,356,921 | 100.0 | % | 1.41 | % | -0.09 | % | 4.32 | % | |||||
Alternative Investment Return Data ***: | |||||||||||||||
HFRI Fund of Funds Composite Index ^ | -9.60 | % | -20.97 | % | 2.02 | % |
MDS Performance History **** – 60 months ended December 31, 2008
Largest monthly gain | 4.15 | % | Largest monthly loss | (7.31 | )% | |||||
Largest quarterly gain | 5.83 | % | Largest quarterly loss | (13.03 | )% | |||||
Average monthly gain | 1.38 | % | Average monthly loss | (1.78 | )% | |||||
Average quarterly gain | 3.42 | % | Average quarterly loss | (3.86 | )% | |||||
Months with a gain | 39 | Months with a loss | 21 | |||||||
Quarters with a gain | 13 | Quarters with a loss | 7 | |||||||
% of months with a gain | 65 | % | Quarterly standard deviation | 4.67 | % | |||||
% of quarters with a gain | 65 | % | Annual standard deviation | 6.81 | % | |||||
Largest drawdown ***** | (20.26 | )% |
Monthly performance
2004 | 2005 | 2006 | 2007 | 2008 | |||||||||||
January | 1.75 | % | 0.16 | % | 2.75 | % | 1.28 | % | (1.37 | )% | |||||
February | 1.28 | % | 1.69 | % | 0.39 | % | 1.50 | % | 1.83 | % | |||||
March | 1.18 | % | (0.61 | )% | 1.22 | % | 1.90 | % | (2.58 | )% | |||||
April | 0.03 | % | (0.65 | )% | 1.89 | % | 2.30 | % | (0.13 | )% | |||||
May | (0.87 | )% | (0.68 | )% | (1.74 | )% | 2.59 | % | 2.51 | % | |||||
June | 0.70 | % | 1.20 | % | (0.66 | )% | 0.85 | % | 0.93 | % | |||||
July | 0.03 | % | 1.33 | % | (0.71 | )% | 0.99 | % | (4.12 | )% | |||||
August | (0.02 | )% | 0.98 | % | 0.02 | % | (1.62 | )% | (2.14 | )% | |||||
September | 0.04 | % | 1.84 | % | (2.04 | )% | 1.85 | % | (7.31 | )% | |||||
October | 1.04 | % | (1.45 | )% | 1.37 | % | 4.15 | % | (4.85 | )% | |||||
November | 2.54 | % | 0.61 | % | 1.81 | % | 0.10 | % | (1.75 | )% | |||||
December | 1.74 | % | 1.37 | % | 1.96 | % | (0.13 | )% | (1.92 | )% | |||||
Quarterly performance | |||||||||||||||
Q1 | 4.27 | % | 1.22 | % | 4.41 | % | 4.75 | % | (2.15 | )% | |||||
Q2 | (0.15 | )% | (0.14 | )% | (0.54 | )% | 5.83 | % | 3.33 | % | |||||
Q3 | 0.06 | % | 4.21 | % | (2.72 | )% | 1.18 | % | (13.03 | )% | |||||
Q4 | 5.41 | % | 0.51 | % | 5.22 | % | 4.11 | % | (8.31 | )% | |||||
Period return | 9.81 | % | 5.88 | % | 6.30 | % | 16.78 | % | (19.38 | )% |
Past performance should not be considered to be a reliable indicator of future performance.
* | Expressed in thousands of United States Dollars |
** | Annualized |
*** | The percentages shown under the alternative investment return data relate only to the performance of our alternative investments held by MDS. |
**** | Net of all fees |
***** | Largest drawdown represents the largest decline in value between two NAV peak values. |
^ | As reported by HFRI as at February 10, 2009 |