press release | ![]() |
For more information, please contact:
Maiden Holdings, Ltd.
Devora M. Goldenberg
441.292.7090
info@maiden.bm
For immediate release
July 30, 2008
Maiden Holdings, Ltd. Reports Second Quarter Net Income of $13.8 million
Maiden Holdings, Ltd. (NASDAQ: MHLD), today reported net income of $13.8 million and net premium written of $171.3 million for the second quarter ended June 30, 2008. Earnings per share for the second quarter were $0.23.
Second Quarter and Six Months 2008 Highlights:
· | Net premium written for second quarter 2008 was $171.3 million |
· | Net premium written for six months ended June 30, 2008 was $273.7 million |
· | Net income for the second quarter was $13.8 million |
· | Net income for six months ended June 30, 2008 was $26.3 million |
· | Return on equity for the second quarter was 10.4% on an annualized basis |
· | Return on equity for six months ended June 30, 2008 on an annualized basis was 9.8% |
· | Quarterly earnings per basic share for second quarter 2008 was $0.23 |
· | Earnings per basic share for six months ended June 30, 2008 was $0.44 |
· | The combined ratio for the second quarter was 92.3% |
· | The combined ratio for six months ended June 30, 2008 was 92.4% |
Second Quarter 2008 Results:
Revenue:
Net written premium for the second quarter was $171.3 million and net earned premium was $77.3 million. Net investment income was $7.8 million for the quarter ended June 30, 2008. For the six months ended June 30, 2008, net written premium was $273.7 million and net earned premium was $142.6 million. Net investment income for the six months was $15.4 million.
Expenses:
The Company’s loss ratio for the second quarter 2008 was 56.4%. The Company’s expenses for the second quarter 2008 were $27.7 million resulting in an expense ratio of 35.9% for the quarter. The Company’s loss ratio for six months ended June 30, 2008 was 57.1% and the expense ratio was 35.4%.
Other Matters:
Shareholders’ Equity as of June 30, 2008 increased to $536.7 million from $530.6 million as of March 31, 2008. During the second quarter the Company announced a dividend of $0.05.
Conference Call:
On July 31, 2008 at 3:00 p.m. Atlantic Time (2:00 p.m. ET), the Company will hold a conference call that can be accessed as follows:
Toll Dial-in (International Callers): 719.325.4845
Toll-free Dial-in: 877.340.7913
Webcast: http://www.maiden.bm
In order to participate in the conference call, you must register at http://www.maiden.bm.
A replay of the conference call will be available starting at 5:00 p.m. Atlantic Time on Thursday, July 31, 2008 through Wednesday, August 6, 2008 by dialing toll 719.457.0820 or toll-free 888.203.1112. The passcode for the replay is 4188502. Replay of the webcast will also be available at http://www.maiden.bm.
About Maiden Holdings, Ltd.
Maiden Holdings, Ltd. is a Bermuda holding company formed in May, 2007 to offer customized reinsurance products and services, through Maiden Insurance Company, Ltd., its wholly owned Bermuda reinsurance subsidiary, to small and mid-size insurance companies in the United States and Europe.
Forward Looking Statement
This release contains “forward-looking statements” which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The forward-looking statements are based on the Company’s current expectations and beliefs concerning future developments and their potential effects on the Company. There can be no assurance that actual developments will be those anticipated by the Company. Actual results may differ materially from those projected as a result of significant risks and uncertainties, including non-receipt of the expected payments, changes in interest rates, effect of the performance of financial markets on investment income and fair values of investments, developments of claims and the effect on loss reserves, accuracy in projecting loss reserves, the impact of competition and pricing environments, changes in the demand for the Company’s products, the effect of general economic conditions, adverse state and federal legislation, regulations and regulatory investigations into industry practices, developments relating to existing agreements, heightened competition, changes in pricing environments, and changes in asset valuations. The Company undertakes no obligation to publicly update any forward-looking statements.
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Maiden Holdings, Ltd.
Income Statement
(in thousands (000's), except per share data)
(Unaudited)
For the Three Months Ended June 30, 2008 | Period from May 31 to June 30, 2007 | For the Six Months Ended June 30, 2008 | Period from May 31 to June 30, 2007 | ||||||||||
Revenues: | |||||||||||||
Premium income: | |||||||||||||
Net premiums written | $ | 171,251 | $ | - | $ | 273,683 | $ | - | |||||
Change in unearned premiums | (93,913 | ) | - | (131,040 | ) | - | |||||||
Net earned premium | 77,338 | - | 142,643 | - | |||||||||
Net investment income | 7,763 | 59 | 15,372 | 59 | |||||||||
Net realized investment gains | 39 | - | 163 | - | |||||||||
Total revenues | 85,140 | 59 | 158,178 | 59 | |||||||||
Expenses: | |||||||||||||
Loss and loss adjustment expenses | 43,610 | - | 81,446 | - | |||||||||
Commission and other acquisition expenses | 25,498 | - | 46,758 | - | |||||||||
Salaries and benefits | 615 | - | 1,147 | - | |||||||||
Other operating expenses | 1,625 | 136 | 2,519 | 136 | |||||||||
Total expenses | 71,348 | 136 | 131,870 | 136 | |||||||||
Net income | $ | 13,792 | $ | (77 | ) | 26,308 | $ | (77 | ) | ||||
Basic and diluted earnings per common share | $ | 0.23 | $ | (0.02 | ) | 0.44 | $ | (0.02 | ) | ||||
Dividends declared per common share | $ | 0.05 | $ | - | 0.10 | $ | - | ||||||
Weighted average number of basic and diluted shares outstanding | 59,550,000 | 4,026 | 59,550,000 | 4,026 | |||||||||
Combined ratio | 92.3 | % | N/A | 92.4 | % | N/A | |||||||
Annualized return on equity | 10.4 | % | -3.80 | % | 9.8 | % | -3.80 | % |
Maiden Holdings, Ltd.
Balance Sheet
(in thousands (000's), except per share data)
(Unaudited) 30-Jun-08 | 31-Dec-07 | ||||||
Assets | |||||||
Fixed maturities, available-for-sale, at fair value (amortized cost $752,990 ; $488,765) | $ | 721,496 | $ | 474,789 | |||
Other investments, at fair value (cost $15,199; $15,176) | 12,134 | 15,656 | |||||
Total investments | 733,630 | 490,445 | |||||
Cash and cash equivalents | 74,170 | 35,729 | |||||
Accrued investment income | 4,827 | 3,204 | |||||
Reinsurance balances receivable, net | 101,933 | 27,990 | |||||
Loan to related party | 167,975 | 113,542 | |||||
Prepaid expenses and other assets | 62 | 454 | |||||
Deferred commission and other acquisition costs | 91,011 | 44,215 | |||||
Furniture and equipment, net | 70 | 29 | |||||
Total Assets | $ | 1,173,678 | $ | 715,608 | |||
Liabilities and Shareholders’ Equity | |||||||
Liabilities | |||||||
Loss and loss adjustment expense reserves | $ | 83,340 | $ | 38,508 | |||
Unearned premiums | 268,206 | 137,166 | |||||
Accrued expenses and other liabilities | 4,175 | 2,589 | |||||
Due to broker | 26,660 | - | |||||
Securities sold under agreements to repurchase, at contract value | 254,557 | - | |||||
Total Liabilities | 636,938 | 178,263 | |||||
Shareholders’ Equity: | |||||||
Common shares | 596 | 596 | |||||
Additional paid-in capital | 530,038 | 529,647 | |||||
Accumulated other comprehensive loss | (34,845 | ) | (13,496 | ) | |||
Retained earnings | 40,951 | 20,598 | |||||
Total Shareholders’ Equity | 536,740 | 537,345 | |||||
Total Liabilities and Shareholders’ Equity | $ | 1,173,677 | $ | 715,608 | |||
Book value per share | $ | 9.01 | $ | 9.02 | |||
Common shares outstanding | 59,550,000 | 59,550,000 |