Maiden posts $15.4m loss in second quarter 2019; CEO Metz remains poised for recovery

Bermuda-based re/insurer Maiden Holdings' losses almost tripled in the second quarter of 2019 compared to a year ago despite numerous  strategic measures to strengthen its capital position and speed up recovery.

Maiden reported a net loss of $15.4 million for the three months ended June 30, 2019, compared with a net loss of $5.9 million in the second quarter of 2018. The higher loss was primarily due to the net loss from discontinued operations of $18.7 million, and an underwriting loss of $39.1 million, the company said.

Gross premiums written were $2.1 million in Q2 2019, compared with $521.5 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 Agreement with AmTrust.

The combined ratio for the second quarter of 2019 increased to 136.6 percent, compared with 108.1 percent in the second quarter of 2018.

Lawrence Metz, Maiden’s president and chief executive officer, said: “Our balance sheet continued to stabilize in the second quarter and this improvement, combined with the strategic transactions announced on August 5, further advance Maiden’s recovery. While work remains to further reduce expenses and return to operating profitability, we continue to make steps toward the objective of building shareholder value.”

Patrick Haveron, Maiden’s chief financial officer and chief operating officer added: “We expect our solvency ratios to continue to improve throughout 2019 and beyond, reflecting the cumulative effect of the strategic measures we have implemented to materially strengthen our capital position. Restoring a very strong capital position remains our primary objective and we continue to evaluate how to further advance our progress.”

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