Breaking News

Maiden Holdings (MHLD) Q2 Loss Widens Y/Y, Revenues Down

By Zacks Investment ResearchStock MarketsAug 15, 2019 07:57AM ET
Maiden Holdings (MHLD) Q2 Loss Widens Y/Y, Revenues Down
By Zacks Investment Research   |  Aug 15, 2019 07:57AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items

Maiden Holdings, Ltd. (NASDAQ:MHLD) reported operating loss per share of 27 cents in the second quarter of 2019, wider than a loss of 22 cents incurred in the year-ago quarter.

Operating revenues dropped 77% year over year to $166 million, attributable to lower net premiums earned, other insurance revenues and net investment income.

Quarter in Detail

In the quarter under review, gross premiums declined to $2.1 million from $521.5 million due to 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.

Net investment income decreased 9.3% to $31.1 million attributable to lower yield.

Total expenses dropped 66.4% year over year to $184.1 million, owing to lower net loss and loss adjustment expenses, commission costs, and other acquisition costs as well as general and administrative expenses.

Net loss and loss adjustment expenses decreased 67.1% to $121.6 million, attributable to lower earned premiums within the AmTrust Reinsurance segment.

The company incurred an underwriting loss of $39.1 million, wider than the year-ago quarterly net loss of $32 million. Combined ratio deteriorated 2850 basis points (bps) year over year to 136.6%.

Maiden Holdings, Ltd. Price, Consensus and EPS Surprise

Segment Result

Diversified Reinsurance: Net premiums earned dropped 71% to $8.7 million. Underwriting income was $0.5 million against loss of $0.1 million in the prior-year quarter. Combined ratio improved 270 bps to 97.9%.

AmTrust Reinsurance: Net premiums earned were negative $9.1 million against $491.3 million in the year-ago quarter. Underwriting loss was $39.6 million, wider than loss of $31.9 million in the year-earlier quarter. Combined ratio deteriorated 2880 bps year over year to 135.5%.

Other: Underwriting income was $0.02 million in the second quarter.

Financial Update

Maiden Holdings exited the quarter with total assets of $4.6 billion compared with $5.3 billion at the end of 2018. Cash and cash equivalents as of Jun 30, 2019 was $464.2 million, up from $331 million at end of 2018.

The company’s net senior notes totaled $254.8 million, slightly down from $264.7 million at 2018 end level.

Shareholders’ equity of $590.6 billion in the second quarter of 2019 was up from $554.3 million at the end of 2018.

As of Jun 30, 2019, book value per share was $1.51, up 39.8% from the 2018-end level.

Operating return on equity was negative 72.2% compared with negative 11.2% in the year-ago quarter.

Business Updates

On Aug 5, 2019, the company entered into a series of strategic transactions, which have materially improved its capital position. The agreement constitutes a loss portfolio transfer and adverse development cover agreement (LPT/ADC) with Enstar Group Limited pursuant to the previously announced Master Agreement; a $330.7 million commutation agreement of certain workers’ compensation loss reserves to AmTrust Financial Services; and entry into a Post-Termination Endorsement with AmTrust to enable operation of the LPT/ADC and supporting collateral agreements and amend the program loss corridor between Maiden and AmTrust pursuant to the terminated Amended and Restated Quota Share Agreement. It also includes resolution with Enstar related to balances due under the sale of Maiden Reinsurance North America.

Performance of Other P&C Insurers

Second-quarter earnings of The Progressive Corporation (NYSE:PGR) , CNA Financial Corporation (NYSE:CNA) and RLI Corp. (NYSE:RLI) beat the respective Zacks Consensus Estimate while that of The Travelers Companies, Inc. (NYSE:TRV) missed expectations.

Breakout Biotech Stocks with Triple-Digit Profit Potential

The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.

Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +98%, +119% and +164% in as little as 1 month. The stocks in this report could perform even better.

See these 7 breakthrough stocks now>>

CNA Financial Corporation (CNA): Free Stock Analysis Report

The Travelers Companies, Inc. (TRV): Free Stock Analysis Report

Maiden Holdings, Ltd. (MHLD): Free Stock Analysis Report

RLI Corp. (RLI): Free Stock Analysis Report

The Progressive Corporation (PGR): Free Stock Analysis Report

Original post

Zacks Investment Research
Maiden Holdings (MHLD) Q2 Loss Widens Y/Y, Revenues Down
Maiden Holdings (MHLD) Q2 Loss Widens Y/Y, Revenues Down

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
Sign up with Email