Maiden Holdings combined ratio rises
The combined ratio for Bermuda-based holding company Maiden Holdings rose for Q3 2019 compared to the same period in 2018. However, Lawrence Metz, Maiden’s president and chief executive officer, said that steps taken to put the company on track were showing signs of success.
The company’s combined ratio was 190.8 percent in the third quarter 2019 compared to 150.8 percent in the same period in 2018.
Maiden Holdings reported a third quarter of 2019 net loss attributable to Maiden common shareholders of $58.3 million or $0.70 per diluted common share, compared to a net loss attributable to Maiden common shareholders of $308.8 million or $3.72 per diluted common share in the third quarter of 2018.
In the third quarter of 2019, gross premiums written were $35.8 million, compared to $484.5 million in the prior year quarter, primarily due to the termination of both quota share contracts in the AmTrust Reinsurance segment and the return of unearned premiums on certain lines covered by the partial termination amendment with AmTrust Financial Services, effective January 1, 2019.
Non-GAAP combined ratio for the third quarter of 2019 was 81.3 percent, compared with 150.8 percent in the third quarter of 2018.
Maiden's book value per common share was $0.82 at September 30, 2019, compared to $1.08 at December 31, 2018. On a non-GAAP basis, adjusted for the unamortized deferred gain on retroactive reinsurance recognized as of September 30, 2019 of $104.5 million, the adjusted book value per common share was $2.08 at September 30, 2019.
Commenting on the third quarter 2019 financial results, Lawrence Metz, Maiden’s president and chief executive officer said: “While our reported results continue to show the impact of additional reserve development, we are pleased that non-GAAP operating results have now turned positive during the third quarter, and the benefits of the numerous steps we have taken to set Maiden on a course to recovery are emerging. While more work remains, we believe these are all positive steps for Maiden.”
Patrick Haveron, Maiden’s chief financial officer and chief operating officer, added: “Our recently completed LPT/ADC agreement with Enstar is having the tempering effect it was designed to have as we continue to de-risk our balance sheet and transition away from the reserve volatility of the last two years.
“Our third quarter reported results reflect the continuing challenges in certain lines of business such as general liability and commercial auto liability, the latter which has plagued the industry for an extended period. While this adverse development is being offset in part by continuing favourable development in workers’ compensation, we continue to closely monitor and respond to continued observed volatility and unfavourable emergence in those liability lines. Despite this, the cumulative impact of our strategic efforts is highlighted in our adjusted book value per share, and tracks with the continuing strengthening of our solvency ratios, which now exceed target levels at both the group and operating company level. We look for further improvements in these ratios as we close 2019.”
