Maiden Holdings reports $15.4m loss

Bermudian-based holding company Maiden Holdings Ltd has reported a second-quarter loss of $15.4 million, compared to a loss of $5.9 million for the same time period a year ago.

The company’s non-GAAP operating loss was $22 million, compared to $18.5 million in the second quarter of 2018.

Maiden’s book value per common share was $1.51 at June 30, an increase of 39.8 per cent from December 31.

Lawrence Metz, president and chief executive officer, said: “Our balance sheet continued to stabilise in the second quarter and this improvement, combined with the strategic transactions announced on August 5, further advance Maiden’s recovery. While work remains to further reduce expenses and return to operating profitability, we continue to make steps towards the objective of building shareholder value.”

Patrick Haveron, chief financial officer and chief operating officer, added: “We expect our solvency ratios to continue to improve throughout 2019 and beyond, reflecting the cumulative effect of the strategic measures we have implemented to materially strengthen our capital position. Restoring a very strong capital position remains our primary objective and we continue to evaluate how to further advance our progress.”

On August 5, the company said it entered into a series of strategic transactions that have materially improved its capital position.

Maiden entered into a loss portfolio transfer and adverse development cover agreement with Enstar Group Ltd, pursuant to a previously announced master agreement, and a $330.7 million commutation agreement of certain workers’ compensation loss reserves to AmTrust Financial Services Inc.

The company reported a net loss from discontinued operations in the second quarter of $18.7 million compared with net income from discontinued operations of $8.2 million for the same period in 2018.

Net income from continuing operations was $3.3 million in the quarter, compared to a net loss of $5.5 million for the same period a year ago. That was largely due, the company said. to realised gains on investments of $24.1 million compared to realised losses of $400,000 a year ago, and no dividends having been paid to preference shareholders during the second quarter in contrast to $8.5 million in dividends paid during the same period in 2018.

Those two factors were offset, the company said, by an underwriting loss of $39.1 million in the quarter, compared with a loss of $32 million for the same period a year ago.