Maiden Holdings Ltd’s net profit for the year rose almost 50 per cent to $117.6 million in 2021 as its enjoyed favourable returns on its management of its assets.

The Bermudian-based holding company reported fourth quarter net income available to Maiden common shareholders was $16.2 million or $0.19 per diluted common share compared with $47.7 million or $0.56 per diluted common share in the fourth quarter of 2020.

For the full year, Maiden reported net income of $117.6 million compared with $80 million in 2020.

Non-GAAP operating earnings were $2.3 million for the fourth quarter compared with $45 million for the same period in 2020.

Maiden's book value per common share was $2.60 at December 31, 2021 compared with $1.57 at December 31, 2020.

Commenting on the fourth quarter results, Patrick J. Haveron and Lawrence F. Metz, Maiden's co-chief executive officers, said: "We finished 2021 and head into 2022 on a successful footing, positioning Maiden for long-term success.

“Our strategic focus on our asset and capital management pillars continue to build out and by completing our first transactions with our Genesis Legacy Solutions unit, the third pillar of our strategy is now beginning to be realised. GLS has an attractive pipeline of opportunities which we expect to build on in 2022.”

GLS was formed in late 2020 as Maiden withdrew from active reinsurance underwriting and looked to employ its expertise in managing capital assets for external clients.

The co-CEOs added: “While capital management made a more pronounced contribution to our 2021 results, we expect the other pillars of our strategy to play an increasing role in our performance in 2022 and beyond. These capital management initiatives have added $1.49 per common share since the fourth quarter of 2020.

"Our strong fourth quarter earnings were partially offset by unrealised losses on our fixed income portfolio of $0.11 per common share as interest rates rose during the fourth quarter, slowing the continuing growth in our book value.

“During the fourth quarter, we had positive results from our expanded asset management activities and operating expenses continued to trend favourably. We believe our asset management and legacy underwriting strategies will exceed our cost of debt capital.

“We also believe that we are accumulating the necessary performance that will enable us to recognise the tax assets not currently reflected on our balance sheet in the future.

“The continuing net favourable trends in the run-off of our former reinsurance liabilities continues to track within our expectations but was impacted by higher current accident year losses on the run-off of these liabilities."

Download PDF File

Maiden Holdings Earnings Release.pdf