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Maiden profits fall 13.5%

Maiden Holdings Ltd’s third-quarter net income fell 13.5 percent to $16 million in the third quarter.

The Bermuda company’s CEO Art Raschbaum hailed another quarter of steady growth for Maiden, which does not have the exposure to natural disasters that others in the Bermuda market do.

The profit broke down to or 22 cents per share, compared with $18.5 million, in the third quarter of 2010.

Net operating earnings for the third quarter of 2011 were $21.4 million, or 29 cents per share compared with $18 million, or 25 cents per share in the comparative quarter in 2010.

“We are very pleased with our third quarter results which reflect continued underwriting discipline, solid operating performance, and continued expansion of our underwriting portfolio,” Mr Raschbaum said.

“Our growth in the quarter is the result of our 2010 international acquisition, expansion of existing client relationships, and the addition of several new client relationships.

“In the quarter, we continued to leverage Maiden’s specialist focus on serving the non-catastrophe needs of regional and specialty insurers, our highly efficient operating platform, our unique collateral trust, and our focus on the needs of our clients.

“Importantly, reflecting our unique business model and careful risk management, the widespread catastrophe losses experienced by the industry in the third quarter of 2011 did not adversely impact Maiden’s results. We remain committed to delivering increasing value to our shareholders and customers.”

Net premiums written were up 56.7 percent, or $155.2 million, to $428.6 million in the third quarter of 2011 compared to 2010. This was attributable to increases in all three business segments, with the Diversified Reinsurance segment experiencing the largest gain, up 80.6 percent.

The increase in the Diversified Reinsurance segment primarily resulted from international personal auto reinsurance premiums obtained through the acquisition of GMAC International Insurance Services, Ltd in the fourth quarter of 2010, as well as growth in premium from new and existing US client relationships.

The combined ratio for the third quarter, the percentage of premium dollars spent on claims and expenses, was 97.4 percent compared with 97 percent in the comparative quarter in 2010.

Net investment income of $18.7 million increased 7.1 percent compared to the third quarter of 2010.

Total assets increased 9.2 percent to $3.26 billion compared to $2.98 billion at year-end 2010. Shareholders’ equity was $767.2 million, an increase of 2.3 percent from the end of 2010.

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Published November 03, 2011 at 2:00 am (Updated November 03, 2011 at 9:41 am)

Maiden profits fall 13.5%

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