Exhibit 99.1
MAX CAPITAL GROUP LTD. REPORTS FOURTH-QUARTER AND YEAR-END 2009
RESULTS
Book Value per Diluted Share increased by 21.8% to $27.36 in 2009
Net Operating Income of $3.62 per Diluted Share in 2009
HAMILTON, BERMUDA, February 9, 2010—Max Capital Group Ltd. (NASDAQ: MXGL; BSX: MXGL BH) today reported net income of $62.6 million, or $1.08 per diluted share for the quarter ended December 31, 2009, compared to a net loss of $94.1 million, or $1.67 per diluted share for the quarter ended December 31, 2008.
Net operating income for the 2009 fourth quarter was $60.5 million, or $1.04 per diluted share, compared to a net operating loss of $85.5 million, or $1.52 per diluted share last year. Annualized net operating return on average shareholders’ equity for the 2009 fourth quarter was 15.5%.
For the full year 2009, the Company reported net income of $246.2 million, or $4.26 per diluted share, compared to a net loss of $175.3 million, or $3.10 per diluted share last year. Net operating income for 2009 was $208.9 million, or $3.62 per diluted share, compared to a net operating loss of $143.8 million, or $2.54 per diluted share last year. Net operating return on average shareholders’ equity for 2009 was 14.7%.
W. Marston (Marty) Becker, Chairman and Chief Executive Officer of Max Capital Group Ltd., said: “Max’s financial results for 2009 reflect another very successful year both operationally and financially, producing a significant increase in book value for our shareholders. We have continued to emphasize diversification and the maintenance of a good balance between specialty insurance and reinsurance, and short- and long-tail business, finely tuning proportions based on prevailing market conditions. In 2009, as our long-tail lines experienced more competition and softer market conditions, across the Group we achieved more robust growth in short-tail lines. We believe our balanced underwriting portfolio helps drive consistency in underwriting results throughout the cycle. Our investment portfolio rebounded significantly from 2008, generating a total return of 6.7%.
“While our core Bermuda/Dublin insurance and reinsurance segments generated over 68% of our property and casualty gross premiums written in 2009, we successfully expanded our other underwriting operations. Max Specialty continued to develop on target, and Max at Lloyd’s had a very successful first full year as a member of Max, contributing meaningfully to group profitability with a combined ratio of 86.3% . In late 2009, we announced the establishment of a Latin American reinsurance operation and the appointment of experienced, leading underwriters for that market. We believe this dedicated local presence will enable us to develop Latin America into a strong source of attractive business for Max.
“Looking forward, we will remain strongly focused on executing a business model designed to produce a 15% return on equity across the cycle; however, in this softer portion of the cycle, we are anticipating an ROE of approximately 13% in 2010, with some incremental benefit from share repurchases,” Becker added.
Fourth quarter 2009 highlights include:
• | Property and casualty gross premiums written increased by $52.2 million (or 23.3%) to $276.3 million, net premiums written increased $63.3 million (or 57.4%) to $173.5 million and net premiums earned increased $51.7 million (or 33.6%) to $205.5 million compared to 2008; |
• | Property and casualty combined ratio improved 18.4 percentage points to 81.2% compared to 2008; |
• | Net favorable development on prior year loss reserves of $30.9 million, or 15.0 points on the combined ratio; |
• | Net gains on other investments of $13.8 million compared to a net loss of $88.0 million in 2008; |
• | Net operating income of $60.5 million or $1.04 per diluted share, representing an annualized net operating return on average shareholders’ equity of 15.5%; and |
• | Book value per diluted share increased by 3.1% during the quarter to $27.36 at December 31, 2009. |
Gross premiums written from property and casualty underwriting for the quarter ended December 31, 2009 were $276.3 million, generated by segments as follows: Bermuda/Dublin insurance $125.0 million; Bermuda/Dublin reinsurance $66.7 million; U.S. specialty $66.2 million; and Max at Lloyd’s $18.3 million.
Segment combined ratios were 59.7% for Bermuda/Dublin insurance, 89.6% for Bermuda/Dublin reinsurance, 99.3% for U.S. specialty and 75.4% for Max at Lloyd’s for the fourth quarter of 2009.
Gross premiums written increased by $12.0 million (or 10.6%) for Bermuda/Dublin insurance, $24.7 million (or 58.8%) for Bermuda/Dublin reinsurance and $6.0 million (or 10.0%) for U.S. specialty compared with the quarter ended December 31, 2008. There were no new contracts written within the life and annuity segment during the fourth quarter of 2009.
Full year 2009 highlights include:
• | Property and casualty gross premiums written increased $319.2 million (or 31.5%) to $1,331.2 million, net premiums written increased $252.6 million (or 42.2%) to $851.2 million and net premiums earned increased $219.2 million (or 38.3%) to $791.0 million compared to 2008; |
• | Life and annuity gross premiums written declined by $198.4 million compared to 2008; |
• | Property and casualty combined ratio decreased 3.8 percentage points to 88.1% compared to 2008; |
• | Net favorable development on prior year loss reserves of $78.3 million, or 9.9 points on the combined ratio; |
• | Net gains on other investments of $76.5 million compared to a net loss of $233.0 million in 2008; |
• | Net operating income of $208.9 million or $3.62 per diluted share, representing a net operating return on average shareholders’ equity of 14.7%; and |
• | Book value per diluted share increased by 21.8% to $27.36 at December 31, 2009. |
Gross premiums written from property and casualty underwriting for the year ended December 31, 2009 were $1,331.2 million, generated by segments as follows: Bermuda/Dublin insurance $427.8 million; Bermuda/Dublin reinsurance $489.0 million; U.S. specialty $285.5 million; and Max at Lloyd’s $129.0 million.
For the full year 2009, segment combined ratios were 75.6% for Bermuda/Dublin insurance, 92.1% for Bermuda/Dublin reinsurance, 99.5% for U.S. specialty and 86.3% for Max at Lloyd’s.
Gross premiums written increased $38.4 million (or 9.9%) for Bermuda/Dublin insurance, $69.5 million (or 16.6%) for Bermuda/Dublin reinsurance and $91.1 million (or 46.9%) for U.S. specialty compared with results in 2008. Gross premiums written for the life and annuity segment were $43.8 million in 2009, a decrease of $198.4 million compared with 2008.
Balance Sheet
Cash and fixed maturity investments were $4.9 billion as of December 31, 2009, an increase of $341.0 million from December 31, 2008. Other investments, principally hedge funds, were $314.8 million as of December 31, 2009 representing 6.0% of invested assets, a decrease from 14.1% of invested assets a year prior. The Company’s liquidity position at December 31, 2009 is strong, with 94.8% or $4.7 billion of the Company’s $4.9 billion cash and fixed maturities portfolio held in cash, government and government agency-backed securities and A-rated or better securities. The Company recognized other-than-temporary impairment losses through earnings of $0.9 million for the fourth quarter of 2009, compared to no impairment losses during the same period in 2008. Net impairment losses recognized in earnings for the year were $3.1 million, compared to $16.9 million in 2008.
Net investment income for the fourth quarter 2009 increased to $44.7 million from $44.2 million for the same period in 2008. Net investment income for the full year 2009 declined to $169.7 million from $181.6 million for 2008. The decrease in net investment income in 2009 compared to 2008 reflects the lower-yield investment environment and a deliberately higher than normal cash position.
The Company significantly reduced its external borrowings in 2009. Total debt of $375.0 million has been repaid during 2009, reducing the Company’s debt to $90.5 million at December 31, 2009.
During the fourth quarter of 2009, under the Board-approved share repurchase authorization, the Company repurchased 1,221,171 of its common shares at an average price of $22.89 per share for a total amount of $28.0 million. In 2009, the Company repurchased 1,543,571 of its common shares at an average price of $22.24 per share for a total amount of $34.3 million.
Shareholders’ equity was $1,564.6 million at December 31, 2009. Book value per share at December 31, 2009 was $28.01, compared to $22.94 at December 31, 2008, an increase of 22.1% . Book value per diluted share at December 31, 2009 was $27.36 compared to $22.46 at December 31, 2008, an increase of 21.8% .
A copy of the Company’s financial supplement for the fourth quarter and year will be available on the Company’s website atwww.maxcapgroup.com shortly after the release of earnings.
The Company will host a conference call on Wednesday, February 10, 2010 at 10:00am (ET) to discuss this release with interested investors and shareholders. The conference call can be accessed via telephone by dialing 1-888-679-8033 (toll-free U.S.) or 1-617-213-4846 (international) and using access code 13868883. Live broadcast of the conference call will also be available through the Company’s website atwww.maxcapgroup.com.
Operating from offices in Bermuda, Ireland, the USA, Latin America and at Lloyd’s, Max Capital Group Ltd. is a global enterprise dedicated to providing diversified specialty insurance and reinsurance products to corporations, public entities, property and casualty insurers, and life and health insurers.
In presenting the Company’s results, management has included and discussed net operating income per diluted share, net operating return on average shareholders’ equity, book value per share and diluted book value per share. 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.
This release includes statements about future economic performance, finances, expectations, plans and prospects of Max Capital Group Ltd. 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 certain 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.
MAX CAPITAL GROUP LTD.
CONSOLIDATED BALANCE SHEETS
(Expressed in thousands of United States Dollars, except per share and share amounts)
December 31, 2009 | December 31, 2008 | ||||||
(unaudited) | |||||||
ASSETS | |||||||
Cash and cash equivalents | $ | 702,278 | $ | 949,404 | |||
Fixed maturities, trading at fair value | 228,696 | 61,820 | |||||
Fixed maturities, available for sale at fair value | 3,007,356 | 3,592,039 | |||||
Fixed maturities, held to maturity at amortized cost (fair value $1,033,551) | 1,005,947 | — | |||||
Other investments, at fair value | 314,849 | 753,658 | |||||
Accrued interest income | 57,215 | 52,882 | |||||
Premiums receivable | 567,301 | 554,845 | |||||
Losses and benefits recoverable from reinsurers | 1,001,373 | 846,622 | |||||
Deferred acquisition costs | 65,648 | 51,337 | |||||
Prepaid reinsurance premiums | 190,613 | 192,889 | |||||
Trades pending settlement | 76,031 | 85,727 | |||||
Other assets | 122,439 | 110,772 | |||||
Total assets | $ | 7,339,746 | $ | 7,251,995 | |||
LIABILITIES | |||||||
Property and casualty losses | $ | 3,178,094 | $ | 2,938,171 | |||
Life and annuity benefits | 1,372,513 | 1,366,976 | |||||
Deposit liabilities | 152,629 | 219,260 | |||||
Funds withheld from reinsurers | 140,079 | 164,157 | |||||
Unearned property and casualty premiums | 628,161 | 574,134 | |||||
Reinsurance balances payable | 146,085 | 160,686 | |||||
Accounts payable and accrued expenses | 67,088 | 81,916 | |||||
Bank loans | — | 375,000 | |||||
Senior notes | 90,464 | 91,364 | |||||
Total liabilities | 5,775,113 | 5,971,664 | |||||
SHAREHOLDERS’ EQUITY | |||||||
Preferred shares (par value $1.00) | — | — | |||||
Common shares (par value $1.00) | 55,867 | 55,806 | |||||
Additional paid-in capital | 752,309 | 763,391 | |||||
Accumulated other comprehensive income (loss) | 25,431 | (45,399 | ) | ||||
Retained earnings | 731,026 | 506,533 | |||||
Total shareholders’ equity | 1,564,633 | 1,280,331 | |||||
Total liabilities and shareholders’ equity | $ | 7,339,746 | $ | 7,251,995 | |||
Book Value Per Share | $ | 28.01 | $ | 22.94 | |||
Diluted Book Value Per Share | $ | 27.36 | $ | 22.46 | |||
Diluted Shares Outstanding | 57,178,458 | 57,017,157 |
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 | Year Ended December 31 | |||||||||||||||
2009 | 2008 | 2009 | 2008 | |||||||||||||
REVENUES | ||||||||||||||||
Gross premiums written | $ | 278,333 | $ | 372,065 | $ | 1,375,001 | $ | 1,254,250 | ||||||||
Reinsurance premiums ceded | (103,143 | ) | (114,196 | ) | (480,481 | ) | (414,047 | ) | ||||||||
Net premiums written | $ | 175,190 | $ | 257,869 | $ | 894,520 | $ | 840,203 | ||||||||
Earned premiums | $ | 325,078 | $ | 409,572 | $ | 1,318,949 | $ | 1,170,248 | ||||||||
Earned premiums ceded | (117,805 | ) | (108,073 | ) | (484,593 | ) | (356,738 | ) | ||||||||
Net premiums earned | 207,273 | 301,499 | 834,356 | 813,510 | ||||||||||||
Net investment income | 44,668 | 44,226 | 169,741 | 181,624 | ||||||||||||
Net realized and unrealized gains (losses) on investments | 17,325 | (88,951 | ) | 81,765 | (234,965 | ) | ||||||||||
Total other-than-temporary impairment losses | (125 | ) | — | (5,315 | ) | (16,887 | ) | |||||||||
Portion of loss recognized in other comprehensive income (loss), before taxes | (800 | ) | — | 2,237 | — | |||||||||||
Net impairment losses recognized in earnings | (925 | ) | — | (3,078 | ) | (16,887 | ) | |||||||||
Net realized gain on retirement of senior notes | 111 | 2,245 | 111 | 2,245 | ||||||||||||
Other income | (196 | ) | 457 | 2,903 | 1,458 | |||||||||||
Total revenues | 268,256 | 259,476 | 1,085,798 | 746,985 | ||||||||||||
LOSSES AND EXPENSES | ||||||||||||||||
Net losses and loss expenses | 114,870 | 115,160 | 493,599 | 393,745 | ||||||||||||
Claims and policy benefits | 16,976 | 164,351 | 101,093 | 301,526 | ||||||||||||
Acquisition costs | 23,188 | 16,635 | 96,874 | 52,379 | ||||||||||||
Interest expense | 6,685 | 15,542 | 21,339 | 36,089 | ||||||||||||
Net foreign exchange losses (gains) | 702 | 7,889 | (5,772 | ) | 9,873 | |||||||||||
Merger and acquisition expenses | (224 | ) | (544 | ) | (31,566 | ) | 2,944 | |||||||||
General and administrative expenses | 38,458 | 34,468 | 153,995 | 124,515 | ||||||||||||
Total losses and expenses | 200,655 | 353,501 | 829,562 | 921,071 | ||||||||||||
INCOME (LOSS) BEFORE TAXES | 67,601 | (94,025 | ) | 256,236 | (174,086 | ) | ||||||||||
Income tax expense | 5,009 | 58 | 10,021 | 1,232 | ||||||||||||
NET INCOME (LOSS) | 62,592 | (94,083 | ) | 246,215 | (175,318 | ) | ||||||||||
Change in net unrealized gains and losses on fixed maturities, net of tax | (16,085 | ) | 118,821 | 50,544 | 9,882 | |||||||||||
Foreign currency translation adjustment | (86 | ) | (17,471 | ) | 20,286 | (34,940 | ) | |||||||||
COMPREHENSIVE INCOME (LOSS) | $ | 46,421 | $ | 7,267 | $ | 317,045 | $ | (200,376 | ) | |||||||
Basic earnings per share | $ | 1.10 | $ | (1.67 | ) | $ | 4.32 | $ | (3.10 | ) | ||||||
Diluted earnings per share (1) | $ | 1.08 | $ | (1.67 | ) | $ | 4.26 | $ | (3.10 | ) | ||||||
Net operating income per diluted share | $ | 1.04 | $ | (1.52 | ) | $ | 3.62 | $ | (2.54 | ) | ||||||
Weighted average shares outstanding - basic | 57,090,930 | 56,296,064 | 57,006,908 | 56,565,588 | ||||||||||||
Weighted average shares outstanding - diluted (1) | 58,035,775 | 56,296,064 | 57,767,137 | 56,565,588 | ||||||||||||
(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)
Year Ended December 31 | ||||||||
2009 | 2008 | |||||||
Common shares | ||||||||
Balance, beginning of year | $ | 55,806 | $ | 57,515 | ||||
Issuance of common shares, net | 1,604 | 2,439 | ||||||
Repurchase of shares | (1,543 | ) | (4,148 | ) | ||||
Balance, end of year | 55,867 | 55,806 | ||||||
Additional paid-in capital | ||||||||
Balance, beginning of year | 763,391 | 844,455 | ||||||
Issuance of common shares, net | 789 | 4,379 | ||||||
Stock based compensation expense | 20,907 | 20,248 | ||||||
Repurchase of shares | (32,778 | ) | (105,691 | ) | ||||
Balance, end of year | 752,309 | 763,391 | ||||||
Accumulated other comprehensive income (loss) | ||||||||
Balance, beginning of year | (45,399 | ) | (20,341 | ) | ||||
Holding gains (losses) on available for sale securities arising in year, net of tax | 51,563 | (5,327 | ) | |||||
Net realized losses on available for sale securities included in net income, net of tax | 1,218 | 15,209 | ||||||
Portion of other-than-temporary impairment losses recognised in other comprehensive income, net of tax | (2,237 | ) | — | |||||
Foreign currency translation adjustment | 20,286 | (34,940 | ) | |||||
Balance, end of year | 25,431 | (45,399 | ) | |||||
Retained earnings | ||||||||
Balance, beginning of year | 506,533 | 702,265 | ||||||
Net income (loss) | 246,215 | (175,318 | ) | |||||
Dividends paid | (21,722 | ) | (20,414 | ) | ||||
Balance, end of year | 731,026 | 506,533 | ||||||
Total shareholders’ equity | $ | 1,564,633 | $ | 1,280,331 | ||||
MAX CAPITAL GROUP LTD.
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
(Expressed in thousands of United States Dollars)
Year Ended December 31 | ||||||||
2009 | 2008 | |||||||
OPERATING ACTIVITIES | ||||||||
Net income (loss) | $ | 246,215 | $ | (175,318 | ) | |||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||||||
Stock based compensation | 20,907 | 20,248 | ||||||
Amortization of premium on fixed maturities | 3,921 | 5,095 | ||||||
Accretion of deposit liabilities | 2,907 | 4,507 | ||||||
Net realized and unrealized (gains) losses on investments | (81,765 | ) | 234,965 | |||||
Net impairment losses recognized in earnings | 3,078 | 16,887 | ||||||
Net realized gain on retirement of senior notes | (111 | ) | (2,245 | ) | ||||
Changes in: | ||||||||
Accrued interest income | (4,206 | ) | (3,498 | ) | ||||
Premiums receivable | (7,551 | ) | (52,844 | ) | ||||
Losses and benefits recoverable from reinsurers | (145,863 | ) | (223,188 | ) | ||||
Deferred acquisition costs | (12,913 | ) | 2,934 | |||||
Prepaid reinsurance premiums | 3,932 | (55,801 | ) | |||||
Other assets | (2,050 | ) | (3,006 | ) | ||||
Property and casualty losses | 199,201 | 373,625 | ||||||
Life and annuity benefits | (21,070 | ) | 200,434 | |||||
Funds withheld from reinsurers | (24,079 | ) | (5,106 | ) | ||||
Unearned property and casualty premiums | 44,490 | 84,563 | ||||||
Reinsurance balances payable | (15,579 | ) | 46,934 | |||||
Accounts payable and accrued expenses | (16,312 | ) | 12,799 | |||||
Cash provided by operating activities | 193,152 | 481,985 | ||||||
INVESTING ACTIVITIES | ||||||||
Purchases of available for sale securities | (1,212,911 | ) | (930,864 | ) | ||||
Sales of available for sale securities | 281,495 | 421,425 | ||||||
Redemptions of available for sale securities | 625,434 | 511,787 | ||||||
Purchases of trading securities | (195,151 | ) | (21,194 | ) | ||||
Sales of trading securities | 29,578 | 17,209 | ||||||
Redemptions of trading securities | 8,347 | 3,201 | ||||||
Purchases of held to maturity securities | (33,647 | ) | — | |||||
Net sales of other investments | 534,244 | 89,231 | ||||||
Acquisition of subsidiary, net of cash acquired | (8,198 | ) | 103,155 | |||||
Cash provided by investing activities | 29,191 | 193,950 | ||||||
FINANCING ACTIVITIES | ||||||||
Net proceeds from issuance of common shares | 2,393 | 6,818 | ||||||
Repurchase of common shares | (34,321 | ) | (109,839 | ) | ||||
Net repayments of bank loans | (375,000 | ) | 45,000 | |||||
Net repayments of senior notes | (811 | ) | (8,415 | ) | ||||
Dividends paid | (21,722 | ) | (20,414 | ) | ||||
Additions to deposit liabilities | 14,630 | 16,681 | ||||||
Payment of deposit liabilities | (84,168 | ) | (23,000 | ) | ||||
Cash used in financing activities | (498,999 | ) | (93,169 | ) | ||||
Effect of exchange rate on cash | 29,530 | (31,018 | ) | |||||
Net (decrease) increase in cash and cash equivalents | (247,126 | ) | 551,748 | |||||
Cash and cash equivalents, beginning of year | 949,404 | 397,656 | ||||||
CASH AND CASH EQUIVALENTS, END OF YEAR | $ | 702,278 | $ | 949,404 | ||||
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Interest paid totaled $6,896 and $21,416 for the years ended December 31, 2009 and 2008, respectively.
Corporate taxes paid totaled $609 and $199 for the year ended December 31, 2009 and 2008, respectively.
MAX CAPITAL GROUP LTD.
SCHEDULE OF SUPPLEMENTAL UNDERWRITING DATA–YEAR ENDED DECEMBER 31, 2009 (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 | ||||||||||||||||||||||||||||
Insurance | Reinsurance | |||||||||||||||||||||||||||||||
Gross premiums written | $ | 427,767 | $ | 489,028 | $ | 285,478 | $ | 128,973 | $ | 1,331,246 | $ | 43,755 | $ | — | $ | 1,375,001 | ||||||||||||||||
Reinsurance premiums ceded | (212,083 | ) | (80,005 | ) | (155,096 | ) | (32,884 | ) | (480,068 | ) | (413 | ) | — | (480,481 | ) | |||||||||||||||||
Net premiums written | $ | 215,684 | $ | 409,023 | $ | 130,382 | $ | 96,089 | $ | 851,178 | $ | 43,342 | $ | — | $ | 894,520 | ||||||||||||||||
Earned premiums | $ | 417,090 | $ | 476,434 | $ | 256,670 | $ | 125,000 | $ | 1,275,194 | $ | 43,755 | $ | — | $ | 1,318,949 | ||||||||||||||||
Earned premiums ceded | (211,127 | ) | (88,578 | ) | (154,568 | ) | (29,907 | ) | (484,180 | ) | (413 | ) | — | (484,593 | ) | |||||||||||||||||
Net premiums earned | 205,963 | 387,856 | 102,102 | 95,093 | 791,014 | 43,342 | — | 834,356 | ||||||||||||||||||||||||
Net investment income | 22,875 | 40,220 | 5,987 | 4,388 | 73,470 | 50,993 | 45,278 | 169,741 | ||||||||||||||||||||||||
Net realized and unrealized gains on investments | 4,430 | 10,540 | 232 | 2,590 | 17,792 | 37,338 | 26,635 | 81,765 | ||||||||||||||||||||||||
Net impairment losses recognized in earnings | — | — | — | — | — | — | (3,078 | ) | (3,078 | ) | ||||||||||||||||||||||
Net realized gain on retirement of senior notes | — | — | — | — | — | — | 111 | 111 | ||||||||||||||||||||||||
Other income | 1,238 | 12 | 314 | 658 | 2,222 | (120 | ) | 801 | 2,903 | |||||||||||||||||||||||
Total revenues | 234,506 | 438,628 | 108,635 | 102,729 | 884,498 | 131,553 | 69,747 | 1,085,798 | ||||||||||||||||||||||||
Net losses and loss expenses | 132,355 | 254,474 | 62,812 | 43,958 | 493,599 | — | — | 493,599 | ||||||||||||||||||||||||
Claims and policy benefits | — | — | — | — | — | 101,093 | — | 101,093 | ||||||||||||||||||||||||
Acquisition costs | (1,233 | ) | 71,074 | 7,501 | 18,136 | 95,478 | 1,396 | — | 96,874 | |||||||||||||||||||||||
Interest expense | 781 | 6,591 | — | — | 7,372 | 3,328 | 10,639 | 21,339 | ||||||||||||||||||||||||
Net foreign exchange gains | — | — | — | (5,055 | ) | (5,055 | ) | — | (717 | ) | (5,772 | ) | ||||||||||||||||||||
Merger and acquisition expenses | — | — | — | — | — | — | (31,566 | ) | (31,566 | ) | ||||||||||||||||||||||
General and administrative expenses | 24,623 | 31,778 | 31,229 | 19,972 | 107,602 | 2,786 | 43,607 | 153,995 | ||||||||||||||||||||||||
Total losses and expenses | 156,526 | 363,917 | 101,542 | 77,011 | 698,996 | 108,603 | 21,963 | 829,562 | ||||||||||||||||||||||||
Income before taxes | $ | 77,980 | $ | 74,711 | $ | 7,093 | $ | 25,718 | $ | 185,502 | $ | 22,950 | $ | 47,784 | $ | 256,236 | ||||||||||||||||
Loss Ratio (a) | 64.3 | % | 65.6 | % | 61.5 | % | 46.2 | % | 62.4 | % | ||||||||||||||||||||||
Combined Ratio (b) | 75.6 | % | 92.1 | % | 99.5 | % | 86.3 | % | 88.1 | % |
SCHEDULE OF SUPPLEMENTAL UNDERWRITING DATA–THREE MONTHS ENDED DECEMBER 31, 2009 (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 | ||||||||||||||||||||||||||||
Insurance | Reinsurance | |||||||||||||||||||||||||||||||
Gross premiums written | $ | 125,040 | $ | 66,732 | $ | 66,210 | $ | 18,344 | $ | 276,326 | $ | 2,007 | $ | — | $ | 278,333 | ||||||||||||||||
Reinsurance premiums ceded | (66,007 | ) | 569 | (36,517 | ) | (921 | ) | (102,876 | ) | (267 | ) | — | (103,143 | ) | ||||||||||||||||||
Net premiums written | $ | 59,033 | $ | 67,301 | $ | 29,693 | $ | 17,423 | $ | 173,450 | $ | 1,740 | $ | — | $ | 175,190 | ||||||||||||||||
Earned premiums | $ | 109,381 | $ | 111,440 | $ | 71,061 | $ | 31,189 | $ | 323,071 | $ | 2,007 | $ | — | $ | 325,078 | ||||||||||||||||
Earned premiums ceded | (53,417 | ) | (13,867 | ) | (42,886 | ) | (7,368 | ) | (117,538 | ) | (267 | ) | — | (117,805 | ) | |||||||||||||||||
Net premiums earned | 55,964 | 97,573 | 28,175 | 23,821 | 205,533 | 1,740 | — | 207,273 | ||||||||||||||||||||||||
Net investment income | 6,014 | 10,613 | 1,438 | 1,172 | 19,237 | 13,367 | 12,064 | 44,668 | ||||||||||||||||||||||||
Net realized and unrealized gains on investments | 893 | 2,073 | 84 | 3 | 3,053 | 8,192 | 6,080 | 17,325 | ||||||||||||||||||||||||
Net impairment losses recognized in earnings | — | — | — | — | — | — | (925 | ) | (925 | ) | ||||||||||||||||||||||
Net realized gain on retirement of senior notes | — | — | — | — | — | — | 111 | 111 | ||||||||||||||||||||||||
Other income | — | — | 42 | 183 | 225 | (120 | ) | (301 | ) | (196 | ) | |||||||||||||||||||||
Total revenues | 62,871 | 110,259 | 29,739 | 25,179 | 228,048 | 23,179 | 17,029 | 268,256 | ||||||||||||||||||||||||
Net losses and loss expenses | 26,326 | 61,718 | 16,312 | 10,514 | 114,870 | — | — | 114,870 | ||||||||||||||||||||||||
Claims and policy benefits | — | — | — | — | — | 16,976 | — | 16,976 | ||||||||||||||||||||||||
Acquisition costs | 270 | 17,578 | 1,628 | 3,339 | 22,815 | 373 | — | 23,188 | ||||||||||||||||||||||||
Interest expense | 781 | 4,191 | — | — | 4,972 | 525 | 1,188 | 6,685 | ||||||||||||||||||||||||
Net foreign exchange losses | — | — | — | 69 | 69 | — | 633 | 702 | ||||||||||||||||||||||||
Merger and acquisition expenses | — | — | — | — | — | — | (224 | ) | (224 | ) | ||||||||||||||||||||||
General and administrative expenses | 6,798 | 8,174 | 10,034 | 4,116 | 29,122 | 606 | 8,730 | 38,458 | ||||||||||||||||||||||||
Total losses and expenses | 34,175 | 91,661 | 27,974 | 18,038 | 171,848 | 18,480 | 10,327 | 200,655 | ||||||||||||||||||||||||
Income before taxes | $ | 28,696 | $ | 18,598 | $ | 1,765 | $ | 7,141 | $ | 56,200 | $ | 4,699 | $ | 6,702 | $ | 67,601 | ||||||||||||||||
Loss Ratio (a) | 47.0 | % | 63.3 | % | 57.9 | % | 44.1 | % | 55.9 | % | ||||||||||||||||||||||
Combined Ratio (b) | 59.7 | % | 89.6 | % | 99.3 | % | 75.4 | % | 81.2 | % |
(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–YEAR 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 (c) | Total | Reinsurance | ||||||||||||||||||||||||||||
Insurance | Reinsurance | |||||||||||||||||||||||||||||||
Gross premiums written | $ | 389,368 | $ | 419,509 | $ | 194,353 | $ | 8,844 | $ | 1,012,074 | $ | 242,176 | $ | — | $ | 1,254,250 | ||||||||||||||||
Reinsurance premiums ceded | (198,098 | ) | (92,421 | ) | (118,710 | ) | (4,294 | ) | (413,523 | ) | (524 | ) | — | (414,047 | ) | |||||||||||||||||
Net premiums written | $ | 191,270 | $ | 327,088 | $ | 75,643 | $ | 4,550 | $ | 598,551 | $ | 241,652 | $ | — | $ | 840,203 | ||||||||||||||||
Earned premiums | $ | 371,080 | $ | 426,157 | $ | 121,172 | $ | 9,663 | $ | 928,072 | $ | 242,176 | $ | — | $ | 1,170,248 | ||||||||||||||||
Earned premiums ceded | (189,125 | ) | (84,366 | ) | (77,374 | ) | (5,349 | ) | (356,214 | ) | (524 | ) | — | (356,738 | ) | |||||||||||||||||
Net premiums earned | 181,955 | 341,791 | 43,798 | 4,314 | 571,858 | 241,652 | — | 813,510 | ||||||||||||||||||||||||
Net investment income | 18,437 | 36,069 | 7,235 | 542 | 62,283 | 40,058 | 79,283 | 181,624 | ||||||||||||||||||||||||
Net realized and unrealized (losses) gains on investments | (23,499 | ) | (51,096 | ) | (523 | ) | 508 | (74,610 | ) | (100,921 | ) | (59,434 | ) | (234,965 | ) | |||||||||||||||||
Net impairment losses recognized in earnings | — | — | — | — | — | — | (16,887 | ) | (16,887 | ) | ||||||||||||||||||||||
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 | 178,005 | 326,764 | 50,813 | 5,524 | 561,106 | 180,789 | 5,090 | 746,985 | ||||||||||||||||||||||||
Net losses and loss expenses | 142,150 | 218,749 | 30,376 | 2,470 | 393,745 | — | — | 393,745 | ||||||||||||||||||||||||
Claims and policy benefits | — | — | — | — | — | 301,526 | — | 301,526 | ||||||||||||||||||||||||
Acquisition costs | (2,810 | ) | 51,328 | 3,039 | 981 | 52,538 | (159 | ) | — | 52,379 | ||||||||||||||||||||||
Interest expense | — | 7,516 | — | — | 7,516 | 6,818 | 21,755 | 36,089 | ||||||||||||||||||||||||
Net foreign exchange losses | — | — | — | (382 | ) | (382 | ) | — | 10,255 | 9,873 | ||||||||||||||||||||||
Merger and acquisition expenses | — | — | — | — | — | — | 2,944 | 2,944 | ||||||||||||||||||||||||
General and administrative expenses | 21,101 | 28,548 | 27,235 | 2,525 | 79,409 | 2,917 | 42,189 | 124,515 | ||||||||||||||||||||||||
Total losses and expenses | 160,441 | 306,141 | 60,650 | 5,594 | 532,826 | 311,102 | 77,143 | 921,071 | ||||||||||||||||||||||||
Income (loss) before taxes | $ | 17,564 | $ | 20,623 | $ | (9,837 | ) | $ | (70 | ) | $ | 28,280 | $ | (130,313 | ) | $ | (72,053 | ) | $ | (174,086 | ) | |||||||||||
Loss Ratio (a) | 78.1 | % | 64.0 | % | 69.4 | % | 57.3 | % | 68.9 | % | ||||||||||||||||||||||
Combined Ratio (b) | 88.2 | % | 87.4 | % | 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 (c) | Total | Reinsurance | ||||||||||||||||||||||||||||
Insurance | Reinsurance | |||||||||||||||||||||||||||||||
Gross premiums written | $ | 113,080 | $ | 42,025 | $ | 60,191 | $ | 8,844 | $ | 224,140 | $ | 147,925 | $ | — | $ | 372,065 | ||||||||||||||||
Reinsurance premiums ceded | (64,999 | ) | (7,288 | ) | (37,376 | ) | (4,294 | ) | (113,957 | ) | (239 | ) | — | (114,196 | ) | |||||||||||||||||
Net premiums written | $ | 48,081 | $ | 34,737 | $ | 22,815 | $ | 4,550 | $ | 110,183 | $ | 147,686 | $ | — | $ | 257,869 | ||||||||||||||||
Earned premiums | $ | 92,988 | $ | 115,494 | $ | 43,502 | $ | 9,663 | $ | 261,647 | $ | 147,925 | $ | — | $ | 409,572 | ||||||||||||||||
Earned premiums ceded | (48,134 | ) | (26,549 | ) | (27,803 | ) | (5,349 | ) | (107,835 | ) | (238 | ) | — | (108,073 | ) | |||||||||||||||||
Net premiums earned | 44,854 | 88,945 | 15,699 | 4,314 | 153,812 | 147,687 | — | 301,499 | ||||||||||||||||||||||||
Net investment income | 5,124 | 8,272 | 1,672 | 542 | 15,610 | 10,126 | 18,490 | 44,226 | ||||||||||||||||||||||||
Net realized and unrealized (losses) gains on investments | (9,923 | ) | (21,458 | ) | — | 508 | (30,873 | ) | (42,170 | ) | (15,908 | ) | (88,951 | ) | ||||||||||||||||||
Net impairment losses recognized in earnings | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Net realized gain on retirement of senior notes | — | — | — | — | — | — | 2,245 | 2,245 | ||||||||||||||||||||||||
Other income | — | — | 163 | 160 | 323 | — | 134 | 457 | ||||||||||||||||||||||||
Total revenues | 40,055 | 75,759 | 17,534 | 5,524 | 138,872 | 115,643 | 4,961 | 259,476 | ||||||||||||||||||||||||
Net losses and loss expenses | 33,331 | 68,423 | 10,936 | 2,470 | 115,160 | — | — | 115,160 | ||||||||||||||||||||||||
Claims and policy benefits | — | — | — | — | — | 164,351 | — | 164,351 | ||||||||||||||||||||||||
Acquisition costs | (865 | ) | 16,154 | 980 | 981 | 17,250 | (615 | ) | — | 16,635 | ||||||||||||||||||||||
Interest expense | — | 5,134 | — | — | 5,134 | 4,722 | 5,686 | 15,542 | ||||||||||||||||||||||||
Net foreign exchange losses | — | — | — | (382 | ) | (382 | ) | — | 8,271 | 7,889 | ||||||||||||||||||||||
Merger and acquisition expenses | — | — | — | — | — | — | (544 | ) | (544 | ) | ||||||||||||||||||||||
General and administrative expenses | 5,049 | 6,567 | 6,636 | 2,525 | 20,777 | 644 | 13,047 | 34,468 | ||||||||||||||||||||||||
Total losses and expenses | 37,515 | 96,278 | 18,552 | 5,594 | 157,939 | 169,102 | 26,460 | 353,501 | ||||||||||||||||||||||||
Income (loss) before taxes | $ | 2,540 | $ | (20,519 | ) | $ | (1,018 | ) | $ | (70 | ) | $ | (19,067 | ) | $ | (53,459 | ) | $ | (21,499 | ) | $ | (94,025 | ) | |||||||||
Loss Ratio (a) | 74.3 | % | 76.9 | % | 69.7 | % | 57.3 | % | 74.9 | % | ||||||||||||||||||||||
Combined Ratio (b) | 83.6 | % | 102.5 | % | 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. |
(c) | The results of operations for the Max at Lloyd’s segment are consolidated only from the November 6, 2008 date of acquisition. |
MAX CAPITAL GROUP LTD.
SCHEDULE OF SUPPLEMENTAL PREMIUM DATA–YEAR ENDED DECEMBER 31, 2009 (Unaudited)
(Expressed in thousands of United States Dollars)
Gross Premiums Written by Type of Risk:
Year Ended December 31, 2009 | Year Ended December 31, 2008 | ||||||||||||||||
Gross Premiums Written | Percentage of Total Gross Premiums Written | Movement on Prior Year Period | Gross Premiums Written | Percentage of Total Gross Premiums Written | |||||||||||||
Property & Casualty: | |||||||||||||||||
Bermuda/Dublin Insurance: | |||||||||||||||||
Aviation | S | $ | 69,834 | 5.1 | % | 31.7 | % | $ | 53,034 | 4.2 | % | ||||||
Excess Liability | L | 113,767 | 8.3 | % | (7.9 | %) | 123,490 | 9.8 | % | ||||||||
Professional Liability | L | 179,904 | 13.1 | % | 13.0 | % | 159,140 | 12.7 | % | ||||||||
Property | S | 64,262 | 4.6 | % | 19.7 | % | 53,704 | 4.3 | % | ||||||||
427,767 | 31.1 | % | 9.9 | % | 389,368 | 31.0 | % | ||||||||||
Bermuda/Dublin Reinsurance: | |||||||||||||||||
Agriculture | S | 89,550 | 6.5 | % | 11.3 | % | 80,454 | 6.4 | % | ||||||||
Aviation | S | 34,715 | 2.5 | % | 10.0 | % | 31,555 | 2.5 | % | ||||||||
General Casualty | L | 29,185 | 2.1 | % | 187.1 | % | 10,165 | 0.8 | % | ||||||||
Marine & Energy | S | 18,321 | 1.3 | % | 43.5 | % | 12,769 | 1.0 | % | ||||||||
Medical Malpractice | L | 67,483 | 4.9 | % | (12.5 | %) | 77,133 | 6.1 | % | ||||||||
Other | S | 2,297 | 0.2 | % | 18.8 | % | 1,934 | 0.2 | % | ||||||||
Professional Liability | L | 71,531 | 5.2 | % | 84.7 | % | 38,718 | 3.1 | % | ||||||||
Property | S | 87,039 | 6.4 | % | (12.3 | %) | 99,280 | 7.9 | % | ||||||||
Whole Account | L | 11,456 | 0.9 | % | (11.2 | %) | 12,906 | 1.0 | % | ||||||||
Workers’ Compensation | L | 77,451 | 5.6 | % | 41.9 | % | 54,595 | 4.4 | % | ||||||||
489,028 | 35.6 | % | 16.6 | % | 419,509 | 33.4 | % | ||||||||||
U.S. Specialty: | |||||||||||||||||
General Casualty | L | 87,782 | 6.5 | % | 46.7 | % | 59,838 | 4.8 | % | ||||||||
Marine | S | 61,360 | 4.5 | % | 58.7 | % | 38,667 | 3.1 | % | ||||||||
Professional Liability | L | 576 | 0.0 | % | n/a | — | — | ||||||||||
Property | S | 135,760 | 9.8 | % | 41.6 | % | 95,848 | 7.6 | % | ||||||||
285,478 | 20.8 | % | 46.9 | % | 194,353 | 15.5 | % | ||||||||||
Max at Lloyd’s (a): | |||||||||||||||||
Accident & Health | S | 22,602 | 1.6 | % | n/a | 408 | 0.0 | % | |||||||||
Aviation | S | 2,611 | 0.2 | % | n/a | — | — | ||||||||||
Financial Institutions | L | 23,822 | 1.7 | % | n/a | 4,062 | 0.3 | % | |||||||||
Professional Liability | L | 19,889 | 1.4 | % | n/a | 2,928 | 0.3 | % | |||||||||
Property | S | 60,049 | 4.4 | % | n/a | 1,446 | 0.1 | % | |||||||||
�� | |||||||||||||||||
128,973 | 9.3 | % | n/a | 8,844 | 0.7 | % | |||||||||||
Aggregate Property & Casualty | $ | 1,331,246 | 96.8 | % | 31.5 | % | $ | 1,012,074 | 80.7 | % | |||||||
Life & Annuity: | |||||||||||||||||
Annuity | $ | — | — | n/a | $ | 239,555 | 19.1 | % | |||||||||
Life | 43,755 | 3.2 | % | n/a | 2,621 | 0.2 | % | ||||||||||
Aggregate Life & Annuity | $ | 43,755 | 3.2 | % | (81.9 | %) | $ | 242,176 | 19.3 | % | |||||||
Aggregate P&C and Life & Annuity | $ | 1,375,001 | 100.0 | % | 9.6 | % | $ | 1,254,250 | 100.0 | % | |||||||
| |||||||||||||||||
(a) The results of operations for the Max at Lloyd’s segment are consolidated only from November 6, 2008, the date Max at Lloyd’s was acquired |
| ||||||||||||||||
S = Short tail lines | $ | 648,400 | 48.7 | % | $ | 469,099 | 46.4 | % | |||||||||
L = Long tail lines | 682,846 | 51.3 | % | 542,975 | 53.6 | % | |||||||||||
Aggregate Property & Casualty | $ | 1,331,246 | $ | 1,012,074 | |||||||||||||
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 | |||||||||||||||
2009 | 2008 | 2009 | 2008 | |||||||||||||
Net income (loss) | $ | 62,592 | $ | (94,083 | ) | $ | 246,215 | $ | (175,318 | ) | ||||||
Net realized and unrealized (gains) losses on fixed maturities, net of tax (1) | (2,576 | ) | 1,108 | (1,411 | ) | 18,640 | ||||||||||
Foreign exchange losses (gains), net of tax | 682 | 7,999 | (4,331 | ) | 9,982 | |||||||||||
Merger and acquisition expenses, net of tax | (224 | ) | (544 | ) | (31,566 | ) | 2,944 | |||||||||
Net operating income (loss) | $ | 60,474 | $ | (85,520 | ) | $ | 208,907 | $ | (143,752 | ) | ||||||
Net income (loss) per diluted share | $ | 1.08 | $ | (1.67 | ) | $ | 4.26 | $ | (3.10 | ) | ||||||
Net realized and unrealized (gains) losses on fixed maturities, net of tax (1) | (0.05 | ) | 0.02 | (0.02 | ) | 0.33 | ||||||||||
Foreign exchange losses (gains), net of tax | 0.01 | 0.14 | (0.07 | ) | 0.18 | |||||||||||
Merger and acquisition expenses, net of tax | — | (0.01 | ) | (0.55 | ) | 0.05 | ||||||||||
Net operating income (loss) per diluted share | $ | 1.04 | $ | (1.52 | ) | $ | 3.62 | $ | (2.54 | ) | ||||||
Weighted average shares outstanding - basic | 57,090,930 | 56,296,064 | 57,006,908 | 56,565,588 | ||||||||||||
Weighted average shares outstanding - diluted (2) | 58,035,775 | 56,296,064 | 57,767,137 | 56,565,588 | ||||||||||||
(1) | Net realized and unrealized (gains) losses on fixed maturities includes realized and unrealized (gains) losses on trading securities, realised (gains) losses on available for sale securities, net impairment losses recognized in earnings, and changes in fair value of investment derivatives. |
(2) | 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 | |||||||||||||||
2009 | 2008 | 2009 | 2008 | |||||||||||||
Net income (loss) | $ | 62,592 | $ | (94,083 | ) | $ | 246,215 | $ | (175,318 | ) | ||||||
Annualized net income (loss) | 250,368 | (376,332 | ) | 246,215 | (175,318 | ) | ||||||||||
Net operating income (loss) | $ | 60,474 | $ | (85,520 | ) | $ | 208,907 | $ | (143,752 | ) | ||||||
Annualized net operating income (loss) | 241,896 | (342,080 | ) | 208,907 | (143,752 | ) | ||||||||||
Beginning shareholders’ equity | $ | 1,546,674 | $ | 1,274,482 | $ | 1,280,331 | $ | 1,583,894 | ||||||||
Ending shareholders’ equity | 1,564,633 | 1,280,331 | 1,564,633 | 1,280,331 | ||||||||||||
Average shareholders’ equity | 1,555,654 | 1,277,407 | 1,422,482 | 1,432,113 | ||||||||||||
Annualized return on average shareholders’ equity | 16.1 | % | (29.5 | %) | 17.3 | % | (12.2 | %) | ||||||||
Annualized net operating return on average shareholders’ equity | 15.5 | % | (26.8 | %) | 14.7 | % | (10.0 | %) |
MAX CAPITAL GROUP LTD.
SCHEDULE OF SUPPLEMENTAL INVESTMENT DATA–YEAR ENDED DECEMBER 31, 2009 (Unaudited)
Expressed in thousands of United States Dollars
As at December 31, 2009 | Investment Distribution | Credit Rating | As at December 31, 2009 | Ratings Distribution | ||||||||||
Cash and Cash Equivalents | $ | 702,278 | 13.4 | % | U.S. Government and Agencies (1) | $ | 1,214,895 | 28.6 | % | |||||
AAA | 720,364 | 17.0 | % | |||||||||||
U.S. Government and Agencies | 525,427 | 10.0 | % | AA | 325,997 | 7.7 | % | |||||||
Non-U.S. Government | 82,027 | 1.5 | % | A | 731,723 | 17.3 | % | |||||||
Corporate Securities | 1,375,999 | 26.2 | % | BBB | 100,841 | 2.4 | % | |||||||
Municipal Securities | 83,658 | 1.6 | % | BB | 34,781 | 0.8 | % | |||||||
Asset-Backed Securities | 102,006 | 1.9 | % | B or lower | 107,451 | 2.5 | % | |||||||
Residential Mortgage-Backed Securities | 763,974 | 14.5 | % | Fixed Maturities at fair value | $ | 3,236,052 | 76.3 | % | ||||||
Commercial Mortgage-Backed Securities | 302,961 | 5.8 | % | |||||||||||
U.S. Government and Agencies | $ | 14,050 | 0.3 | % | ||||||||||
Fixed Maturities at fair value | $ | 3,236,052 | 61.5 | % | AAA | 717,954 | 16.9 | % | ||||||
AA | 101,675 | 2.4 | % | |||||||||||
U.S. Government and Agencies | $ | 14,050 | 0.3 | % | A | 158,141 | 3.7 | % | ||||||
Non-U.S. Government | 573,250 | 10.9 | % | BBB | 12,672 | 0.3 | % | |||||||
Corporate Securities | 418,647 | 7.9 | % | BB | — | 0.0 | % | |||||||
B or lower | 1,455 | 0.1 | % | |||||||||||
Fixed Maturities at amortised cost | $ | 1,005,947 | 19.1 | % | Fixed Maturities at amortised cost | $ | 1,005,947 | 23.7 | % | |||||
Other Investments | $ | 314,849 | 6.0 | % | Total Fixed Maturities | $ | 4,241,999 | |||||||
Total Investments | $ | 5,259,126 | 100.0 | % | ||||||||||
(1) | Included within U.S. Government and Agencies are Agency-issued Residential Mortgage-Backed Securities with a fair value of $689,468. |
Contacts | ||
Susan Spivak Bernstein | Roanne Kulakoff | |
Senior Vice President | Kekst and Company | |
susan.spivak@maxcapservices.com | roanne-kulakoff@kekst.com | |
1-212-898-6640 | 1-212-521-4837 |