Maiden records $28.5m profit
Maiden Holdings Ltd reported a net income of $28.5 million compared to $69.9 million in 2010.
They also reported fourth quarter 2011 net income of $17.5 million, compared with $19.1 million in the fourth quarter of 2010.
“In one of the worst years for insured catastrophic losses on record, Maiden’s 2011 results demonstrate the effectiveness of our lower volatility business model,” said Art Raschbaum, CEO of Maiden Holdings.
“Despite the challenging operating environment, Maiden reported a full year profitable combined ratio of 98.1 percent and an operating return on equity of 9.2 percent.”
Maiden’s net income was impacted by a number of non-operating expenses during 2011, including charges related to the repurchase of junior subordinated debt with proceeds from the June 2011 Senior Notes offering. Financial results for 2011 were also impacted by $9.5 million in losses related to thunderstorm and tornado activity across the US in the second quarter, compared to no catastrophe losses in 2010.
Maiden wrote more business in 2011, with net premiums written rising 40.4 percent or $495.7 million to $1.7 billion compared to the same period in 2010.
The Bermuda-based reinsurer is looking for an improved rating environment this year.
“For 2012 we are encouraged by the prospect for improving rates,” said Mr Raschbaum. “Our focus this year will be on strengthening underwriting performance and investment earnings by deploying our significant year-end cash balance. We remain committed to increasing shareholder value and delivering superior reinsurance solutions to our clients.”