Maiden Holdings reports $570m loss for year
Maiden Holdings has reported a net loss of $269.2 million, or $3.25 per common share, for the fourth quarter.
That marks the sixth loss in the past seven quarters for the Bermudian-based company.
The amount is more than double the $133.6 million loss the company reported in the corresponding period in 2017.
For the full year, net loss jumped from $199.1 million in 2017, to $570.3 million.
Lawrence Metz, president and chief executive officer of Maiden, said 2018 had been an extremely difficult year for shareholders and employees.
He also said: “With our recently announced revised LPT/ADC [loss portfolio transfer/adverse development cover] transaction with Enstar, we believe we are nearing the end of our strategic review process.”
He said there has been continued decisive action since the third-quarter report, with the completion of the sale of Maiden’s US reinsurance business to Enstar, mutually agreeing with AmTrust to first amend and then terminate Maiden’s quota share reinsurance contracts effective January 1, completing the sale of some European subsidiaries and entering the aforementioned new agreement with Enstar.
Mr Metz said: “We look forward to now taking the necessary steps to enhance our business and create lasting shareholder value.”
Patrick Haveron, chief financial officer and chief operating officer, said that since September 1, 2018, the company had taken a series of strategic measures that have “de-risked our balance sheet, improved liquidity, significantly strengthened our capital position relative to regulatory requirements, and cured our breach of the Bermuda Enhanced Capital Requirement”.
He added: “Looking ahead, we have also reduced our annual total operating expenses by more than $50 million, and look to improve on that to reflect the significant changes in our business during 2018 and 2019.
“The new LPT/ADC with Enstar will further solidify the progress we have made by protecting our reserves while retaining more assets for investment. Maiden enters 2019 with a stronger balance sheet and we expect to further improve our solvency ratios as we look to rebuild shareholder value and begin repositioning our business for the future.”
On March 1, Maiden terminated the master agreement it had with Enstar Group Limited and simultaneously signed a new agreement.
In a statement, Maiden said: the new agreement was “pursuant to which an Enstar subsidiary will assume liabilities for loss reserves as of December 31, 2018, associated with the quota share reinsurance agreements between the company’s wholly-owned subsidiary Maiden Reinsurance Ltd and AmTrust Financial Services Inc, or its subsidiaries in excess of a $2.44 billion retention up to $675 million”.
It added: “The $2.44 billion retention will be subject to adjustment for paid losses since December 31, 2018. The new MTA [agreement] and associated reinsurance agreement will provide Maiden Bermuda with $175 million in adverse development cover over its carried AmTrust reserves at December 31. The transaction is subject to regulatory approvals and other closing conditions.”
Burt lashes out after Butterfield job losses
Mothers decry children riding motorcycles
A model experience
Licensed venues questioned on event flyers
Three hurt in Harbour Road crash
Customers bemused to find Rosebank closed
Inmate says Wolffe confessed to robbery
Local lionfish grow faster and larger
‘Giant who is gone too soon’
Lawyers clash over Brown patient files
Parents ‘could strike’ over TN Tatem plan
Robbins stars as robot on Netflix
Docksider bar beefs up security
Unlicensed drink-driver nabbed back-to-back
Pancakes and pyjamas for breakfast
App to show electric vehicle renters around
Take Our Poll