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Maiden posts $10.3m fourth-quarter loss

Bermuda-based re/insurer Maiden Holdings Ltd last night reported a loss for its fourth quarter as it dealt with claims from Superstorm Sandy.

The company posted a net loss of $10.3 million, or14 cents per diluted common share, compared with net income of $17.5 million, or 24 cents per share in the same period in 2011.

Maiden’s operating loss of $10.1 million, or 14 cents per share beat the 12 cents forecast of analysts tracked by Yahoo Finance.

The company’s fourth-quarter results include estimated underwriting losses from Sandy of $31.1 million.

Excluding the losses from that event, Maiden’s net operating earnings for Q4 would have been $21.0 million, the company said.

Commenting on the company’s earnings, Maiden CEO Art Raschbaum said: “Notwithstanding the significant impact of Sandy, in the past year Maiden has grown premiums, enhanced its capital position with two long-term capital raises, improved operating efficiency and continued to develop new clients through its US, UK and Bermuda platforms.

“Delivering value to our shareholders and providing outstanding products and services for our clients remain the ultimate goals of Maiden’s lower volatility business model, as we support the non-catastrophe reinsurance needs of regional and specialty insurers. An improving pricing environment, efficient capital management and prudent investing will all contribute to the achievement of these ambitions in 2013.”

Maiden reported a full-year net profit of $46.5 million compared to a net income of $28.5 million at year-end 2011.

Net operating earnings for 2012 were $48.5 million compared to $69.6 million for the whole of 2011.

In the fourth quarter of 2012 gross premiums written totalled $464.04 million compared to $428.30 million during the same time period of 2011 — an increase of more than 7.5 percent.

Net investment income of $21.1 million in the fourth quarter of 2012 increased 22.9 percent year over year.

The book yield on the fixed income portfolio was 3.48 percent with an average duration of 3.55 years for the fourth quarter of 2012.

Net investment income for 2012 was $81.2 million, up 8.4 percent compared to 2011. This reflects the $598.7 million increase in total investments at the end of 2012 compared to the end of 2011.

The fourth-quarter combined ratio — which reflects the proportion of premium dollars outlaid on claims and expenses — was 103.7 percent compared with 98.3 percent in the same period in 2011. Excluding the impact of Sandy, it was 97.3 percent.

Total assets increased 21.9 percent to $4.1 billion at the end of December, up from $3.4 billion at the end of 2011.

Total cash on hand at December 31, 2012, was $213.8 million, comprised of cash and cash equivalents of $81.5 million, down 56.6 percent from the end of 2011, and restricted cash and cash equivalents of $132.3 million, which is up 15.2 percent compared to the end of 2011.

Shareholders’ equity was $1 billion, an increase of 32.1 percent compared to December 31, 2011. Book value per common share was $11.96 at the end of the fourth quarter of 2012 or 12.4 percent higher than at December 31, 2011.

During the fourth quarter, Maiden’s board of directors increased the common share dividend 12.5 percent to 9 cents per common share.

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Published February 21, 2013 at 8:00 am (Updated February 20, 2013 at 8:05 pm)

Maiden posts $10.3m fourth-quarter loss

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