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Name | Symbol | Market | Type |
---|---|---|---|
Maiden Holdings, Ltd. Pref Shs Ser A (Bermuda) | NYSE:MHPA | NYSE | Preference Share |
Price Change | % Change | Price | High Price | Low Price | Open Price | Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 0 | - |
☒
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
☐
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
Bermuda
|
98-0570192
|
(State or other jurisdiction of
incorporation or organization)
|
(IRS Employer
Identification No.)
|
94 Pitts Bay Road
|
|
Pembroke
|
|
Bermuda
|
HM08
|
(Address of principal executive offices)
|
(Zip Code)
|
Title of Each Class
|
|
Trading symbol(s)
|
|
Name of Each Exchange on Which Registered
|
Common Shares, par value $0.01 per share
|
|
MHLD
|
|
NASDAQ Capital Market
|
Series A Preference Shares, par value $0.01 per share
|
|
MH.PA
|
|
New York Stock Exchange
|
Series C Preference Shares, par value $0.01 per share
|
|
MH.PC
|
|
New York Stock Exchange
|
Series D Preference Shares, par value $0.01 per share
|
|
MH.PD
|
|
New York Stock Exchange
|
Large accelerated filer
|
☒
|
|
Accelerated filer
|
☐
|
Non-accelerated filer
|
☐
|
|
(Do not check if a smaller reporting company)
|
|
|
|
|
Smaller reporting company
|
☐
|
|
|
|
Emerging growth company
|
☐
|
|
|
September 30,
2019 |
|
December 31,
2018 |
||||
ASSETS
|
|
(Unaudited)
|
|
(Audited)
|
||||
Investments:
|
|
|
|
|
||||
Fixed maturities, available-for-sale, at fair value (amortized cost 2019 - $2,040,852; 2018 - $3,109,980)
|
|
$
|
2,059,560
|
|
|
$
|
3,051,568
|
|
Fixed maturities, held-to-maturity, at amortized cost (fair value 2018 - $998,012)
|
|
—
|
|
|
1,015,681
|
|
||
Other investments, at fair value
|
|
30,412
|
|
|
23,716
|
|
||
Total investments
|
|
2,089,972
|
|
|
4,090,965
|
|
||
Cash and cash equivalents
|
|
39,755
|
|
|
200,841
|
|
||
Restricted cash and cash equivalents
|
|
33,171
|
|
|
130,148
|
|
||
Accrued investment income
|
|
19,139
|
|
|
27,824
|
|
||
Reinsurance balances receivable, net (includes $30,211 and $38,278 from related parties in 2019 and 2018, respectively)
|
|
46,291
|
|
|
67,997
|
|
||
Reinsurance recoverable on unpaid losses
|
|
615,481
|
|
|
71,901
|
|
||
Loan to related party
|
|
167,975
|
|
|
167,975
|
|
||
Deferred commission and other acquisition expenses (includes $80,390 and $370,037 from related parties in 2019 and 2018, respectively)
|
|
90,367
|
|
|
388,442
|
|
||
Funds withheld receivable (includes $630,701 from related parties in 2019)
|
|
678,775
|
|
|
27,039
|
|
||
Other assets
|
|
11,029
|
|
|
10,700
|
|
||
Assets held for sale
|
|
—
|
|
|
103,628
|
|
||
Total assets
|
|
$
|
3,791,955
|
|
|
$
|
5,287,460
|
|
LIABILITIES
|
|
|
|
|
||||
Reserve for loss and loss adjustment expenses (includes $2,456,559 and $2,950,388 from related parties in 2019 and 2018, respectively)
|
|
$
|
2,625,858
|
|
|
$
|
3,126,134
|
|
Unearned premiums (includes $226,828 and $1,135,913 from related parties in 2019 and 2018, respectively)
|
|
261,130
|
|
|
1,200,419
|
|
||
Deferred gain on retroactive reinsurance
|
|
104,542
|
|
|
—
|
|
||
Accrued expenses and other liabilities
|
|
12,416
|
|
|
66,183
|
|
||
Senior notes - principal amount
|
|
262,500
|
|
|
262,500
|
|
||
Less: unamortized debt issuance costs
|
|
7,646
|
|
|
7,806
|
|
||
Senior notes, net
|
|
254,854
|
|
|
254,694
|
|
||
Liabilities held for sale
|
|
—
|
|
|
85,114
|
|
||
Total liabilities
|
|
3,258,800
|
|
|
4,732,544
|
|
||
Commitments and Contingencies
|
|
|
|
|
|
|
||
EQUITY
|
|
|
|
|
||||
Preference shares
|
|
465,000
|
|
|
465,000
|
|
||
Common shares ($0.01 par value; 88,124,360 and 87,938,537 shares issued in 2019 and 2018, respectively; 83,111,180 and 82,948,577 shares outstanding in 2019 and 2018, respectively)
|
|
881
|
|
|
879
|
|
||
Additional paid-in capital
|
|
751,138
|
|
|
749,418
|
|
||
Accumulated other comprehensive income (loss)
|
|
21,936
|
|
|
(65,616
|
)
|
||
Accumulated deficit
|
|
(674,267
|
)
|
|
(563,891
|
)
|
||
Treasury shares, at cost (5,013,180 and 4,989,960 shares in 2019 and 2018, respectively)
|
|
(31,533
|
)
|
|
(31,515
|
)
|
||
Total Maiden shareholders’ equity
|
|
533,155
|
|
|
554,275
|
|
||
Noncontrolling interests in subsidiaries
|
|
—
|
|
|
641
|
|
||
Total equity
|
|
533,155
|
|
|
554,916
|
|
||
Total liabilities and equity
|
|
$
|
3,791,955
|
|
|
$
|
5,287,460
|
|
|
|
For the Three Months Ended September 30,
|
|
For the Nine Months Ended September 30,
|
||||||||||||
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Revenues
|
|
|
|
|
|
|
|
|
||||||||
Gross premiums written
|
|
$
|
35,844
|
|
|
$
|
484,493
|
|
|
$
|
(523,178
|
)
|
|
$
|
1,629,347
|
|
Net premiums written
|
|
$
|
35,944
|
|
|
$
|
482,806
|
|
|
$
|
(525,995
|
)
|
|
$
|
1,626,485
|
|
Change in unearned premiums
|
|
58,954
|
|
|
37,271
|
|
|
937,981
|
|
|
(85,207
|
)
|
||||
Net premiums earned
|
|
94,898
|
|
|
520,077
|
|
|
411,986
|
|
|
1,541,278
|
|
||||
Other insurance revenue
|
|
554
|
|
|
1,870
|
|
|
2,058
|
|
|
7,629
|
|
||||
Net investment income
|
|
13,223
|
|
|
34,419
|
|
|
76,367
|
|
|
101,548
|
|
||||
Net realized gains (losses) on investment
|
|
12,700
|
|
|
(225
|
)
|
|
25,685
|
|
|
(282
|
)
|
||||
Total other-than-temporary impairment losses
|
|
(165
|
)
|
|
(479
|
)
|
|
(165
|
)
|
|
(479
|
)
|
||||
Total revenues
|
|
121,210
|
|
|
555,662
|
|
|
515,931
|
|
|
1,649,694
|
|
||||
Expenses
|
|
|
|
|
|
|
|
|
||||||||
Net loss and loss adjustment expenses
|
|
140,860
|
|
|
600,296
|
|
|
415,110
|
|
|
1,323,503
|
|
||||
Commission and other acquisition expenses
|
|
32,763
|
|
|
167,618
|
|
|
152,036
|
|
|
497,026
|
|
||||
General and administrative expenses
|
|
8,546
|
|
|
19,207
|
|
|
37,334
|
|
|
49,738
|
|
||||
Interest and amortization expenses
|
|
4,831
|
|
|
4,829
|
|
|
14,490
|
|
|
14,487
|
|
||||
Foreign exchange and other (gains) losses
|
|
(7,827
|
)
|
|
552
|
|
|
(14,013
|
)
|
|
(1,862
|
)
|
||||
Total expenses
|
|
179,173
|
|
|
792,502
|
|
|
604,957
|
|
|
1,882,892
|
|
||||
Loss from continuing operations before income taxes
|
|
(57,963
|
)
|
|
(236,840
|
)
|
|
(89,026
|
)
|
|
(233,198
|
)
|
||||
Less: income tax expense (benefit)
|
|
87
|
|
|
3,573
|
|
|
(977
|
)
|
|
402
|
|
||||
Loss from continuing operations
|
|
(58,050
|
)
|
|
(240,413
|
)
|
|
(88,049
|
)
|
|
(233,600
|
)
|
||||
Loss from discontinued operations, net of income tax
|
|
(277
|
)
|
|
(59,819
|
)
|
|
(22,327
|
)
|
|
(41,609
|
)
|
||||
Net loss
|
|
(58,327
|
)
|
|
(300,232
|
)
|
|
(110,376
|
)
|
|
(275,209
|
)
|
||||
Net income from continuing operations attributable to noncontrolling interests
|
|
—
|
|
|
(62
|
)
|
|
—
|
|
|
(180
|
)
|
||||
Net loss attributable to Maiden
|
|
(58,327
|
)
|
|
(300,294
|
)
|
|
(110,376
|
)
|
|
(275,389
|
)
|
||||
Dividends on preference shares
|
|
—
|
|
|
(8,545
|
)
|
|
—
|
|
|
(25,636
|
)
|
||||
Net loss attributable to Maiden common shareholders
|
|
$
|
(58,327
|
)
|
|
$
|
(308,839
|
)
|
|
$
|
(110,376
|
)
|
|
$
|
(301,025
|
)
|
Basic and diluted loss from continuing operations per share attributable to Maiden common shareholders
|
|
$
|
(0.70
|
)
|
|
$
|
(3.00
|
)
|
|
$
|
(1.06
|
)
|
|
$
|
(3.12
|
)
|
Basic and diluted loss from discontinued operations per share attributable to Maiden common shareholders
|
|
—
|
|
|
(0.72
|
)
|
|
(0.27
|
)
|
|
(0.50
|
)
|
||||
Basic and diluted loss per share attributable to Maiden common shareholders
|
|
$
|
(0.70
|
)
|
|
$
|
(3.72
|
)
|
|
$
|
(1.33
|
)
|
|
$
|
(3.62
|
)
|
Weighted average number of common shares - basic and diluted
|
|
83,092,085
|
|
|
83,089,172
|
|
|
83,036,925
|
|
|
83,085,441
|
|
|
|
For the Three Months Ended September 30,
|
|
For the Nine Months Ended September 30,
|
||||||||||||
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Net loss
|
|
$
|
(58,327
|
)
|
|
$
|
(300,232
|
)
|
|
$
|
(110,376
|
)
|
|
$
|
(275,209
|
)
|
Other comprehensive income (loss)
|
|
|
|
|
|
|
|
|
||||||||
Net unrealized holdings (losses) gains on available-for-sale fixed maturities arising during period
|
|
(2,129
|
)
|
|
(24,658
|
)
|
|
89,919
|
|
|
(141,926
|
)
|
||||
Adjustment for reclassification of net realized (gains) losses recognized in net (loss) income
|
|
(8,555
|
)
|
|
785
|
|
|
(11,482
|
)
|
|
40
|
|
||||
Foreign currency translation adjustment
|
|
11,480
|
|
|
4,458
|
|
|
9,286
|
|
|
12,123
|
|
||||
Other comprehensive income (loss), before tax
|
|
796
|
|
|
(19,415
|
)
|
|
87,723
|
|
|
(129,763
|
)
|
||||
Income tax (expense) benefit related to components of other comprehensive income (loss)
|
|
(12
|
)
|
|
2
|
|
|
(93
|
)
|
|
19
|
|
||||
Other comprehensive income (loss), after tax
|
|
784
|
|
|
(19,413
|
)
|
|
87,630
|
|
|
(129,744
|
)
|
||||
Comprehensive loss
|
|
(57,543
|
)
|
|
(319,645
|
)
|
|
(22,746
|
)
|
|
(404,953
|
)
|
||||
Net income attributable to noncontrolling interests
|
|
—
|
|
|
(62
|
)
|
|
—
|
|
|
(180
|
)
|
||||
Other comprehensive loss (income) attributable to noncontrolling interests
|
|
—
|
|
|
3
|
|
|
(78
|
)
|
|
21
|
|
||||
Comprehensive income attributable to noncontrolling interests
|
|
—
|
|
|
(59
|
)
|
|
(78
|
)
|
|
(159
|
)
|
||||
Comprehensive loss attributable to Maiden
|
|
$
|
(57,543
|
)
|
|
$
|
(319,704
|
)
|
|
$
|
(22,824
|
)
|
|
$
|
(405,112
|
)
|
|
|
For the Three Months Ended September 30,
|
|
For the Nine Months Ended September 30,
|
||||||||||||
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Preference shares - Series A, C and D
|
|
|
|
|
|
|
|
|
||||||||
Beginning balance
|
|
$
|
465,000
|
|
|
$
|
465,000
|
|
|
$
|
465,000
|
|
|
$
|
465,000
|
|
Ending balance
|
|
465,000
|
|
|
465,000
|
|
|
465,000
|
|
|
465,000
|
|
||||
Common shares
|
|
|
|
|
|
|
|
|
||||||||
Beginning balance
|
|
881
|
|
|
879
|
|
|
879
|
|
|
877
|
|
||||
Exercise of options and issuance of shares
|
|
—
|
|
|
—
|
|
|
2
|
|
|
2
|
|
||||
Ending balance
|
|
881
|
|
|
879
|
|
|
881
|
|
|
879
|
|
||||
Additional paid-in capital
|
|
|
|
|
|
|
|
|
||||||||
Beginning balance
|
|
751,007
|
|
|
749,319
|
|
|
749,418
|
|
|
748,113
|
|
||||
Exercise of options and issuance of common shares
|
|
—
|
|
|
15
|
|
|
(2
|
)
|
|
13
|
|
||||
Share-based compensation expense
|
|
131
|
|
|
(120
|
)
|
|
1,722
|
|
|
1,088
|
|
||||
Ending balance
|
|
751,138
|
|
|
749,214
|
|
|
751,138
|
|
|
749,214
|
|
||||
Accumulated other comprehensive income (loss)
|
|
|
|
|
|
|
|
|
||||||||
Beginning balance
|
|
21,152
|
|
|
(96,959
|
)
|
|
(65,616
|
)
|
|
13,354
|
|
||||
Change in net unrealized (losses) gains on investment
|
|
(10,696
|
)
|
|
(23,871
|
)
|
|
78,344
|
|
|
(141,867
|
)
|
||||
Foreign currency translation adjustment
|
|
11,480
|
|
|
4,461
|
|
|
9,208
|
|
|
12,144
|
|
||||
Ending balance
|
|
21,936
|
|
|
(116,369
|
)
|
|
21,936
|
|
|
(116,369
|
)
|
||||
(Accumulated deficit) retained earnings
|
|
|
|
|
|
|
|
|
||||||||
Beginning balance
|
|
(615,940
|
)
|
|
18,338
|
|
|
(563,891
|
)
|
|
35,472
|
|
||||
Net loss attributable to Maiden
|
|
(58,327
|
)
|
|
(300,294
|
)
|
|
(110,376
|
)
|
|
(275,389
|
)
|
||||
Dividends on preference shares
|
|
—
|
|
|
(8,545
|
)
|
|
—
|
|
|
(25,636
|
)
|
||||
Dividends on common shares
|
|
—
|
|
|
(4,155
|
)
|
|
—
|
|
|
(29,103
|
)
|
||||
Ending balance
|
|
(674,267
|
)
|
|
(294,656
|
)
|
|
(674,267
|
)
|
|
(294,656
|
)
|
||||
Treasury shares
|
|
|
|
|
|
|
|
|
||||||||
Beginning balance
|
|
(31,528
|
)
|
|
(30,835
|
)
|
|
(31,515
|
)
|
|
(30,642
|
)
|
||||
Shares repurchased
|
|
(5
|
)
|
|
(679
|
)
|
|
(18
|
)
|
|
(872
|
)
|
||||
Ending balance
|
|
(31,533
|
)
|
|
(31,514
|
)
|
|
(31,533
|
)
|
|
(31,514
|
)
|
||||
Noncontrolling interests in subsidiaries
|
|
|
|
|
|
|
|
|
||||||||
Beginning balance
|
|
—
|
|
|
552
|
|
|
641
|
|
|
452
|
|
||||
Disposal of subsidiaries
|
|
—
|
|
|
—
|
|
|
(719
|
)
|
|
—
|
|
||||
Net income attributable to noncontrolling interests
|
|
—
|
|
|
62
|
|
|
—
|
|
|
180
|
|
||||
Foreign currency translation adjustment
|
|
—
|
|
|
(3
|
)
|
|
78
|
|
|
(21
|
)
|
||||
Ending balance
|
|
—
|
|
|
611
|
|
|
—
|
|
|
611
|
|
||||
Total equity
|
|
$
|
533,155
|
|
|
$
|
773,165
|
|
|
$
|
533,155
|
|
|
$
|
773,165
|
|
For the Nine Months Ended September 30,
|
|
2019
|
|
2018
|
||||
Cash flows from operating activities
|
|
|
|
|
||||
Net loss
|
|
$
|
(110,376
|
)
|
|
$
|
(275,209
|
)
|
Less: net loss from discontinued operations
|
|
22,327
|
|
|
41,609
|
|
||
Adjustments to reconcile net loss to net cash flows from operating activities:
|
|
|
|
|
||||
Depreciation, amortization and share-based compensation
|
|
5,737
|
|
|
4,774
|
|
||
Net realized (gains) losses on investment
|
|
(25,685
|
)
|
|
282
|
|
||
Total other-than-temporary impairment losses
|
|
165
|
|
|
479
|
|
||
Foreign exchange and other gains
|
|
(14,013
|
)
|
|
(1,862
|
)
|
||
Changes in assets – (increase) decrease:
|
|
|
|
|
||||
Reinsurance balances receivable, net
|
|
18,517
|
|
|
(92,904
|
)
|
||
Reinsurance recoverable on unpaid losses
|
|
(439,142
|
)
|
|
23,006
|
|
||
Accrued investment income
|
|
8,542
|
|
|
(1,000
|
)
|
||
Deferred commission and other acquisition expenses
|
|
159,524
|
|
|
(40,097
|
)
|
||
Funds withheld receivable
|
|
(82,459
|
)
|
|
(8,788
|
)
|
||
Other assets
|
|
(8,465
|
)
|
|
77,204
|
|
||
Changes in liabilities – increase (decrease):
|
|
|
|
|
||||
Reserve for loss and loss adjustment expenses
|
|
87,772
|
|
|
481,227
|
|
||
Unearned premiums
|
|
(518,542
|
)
|
|
72,200
|
|
||
Accrued expenses and other liabilities
|
|
(51,076
|
)
|
|
(66,401
|
)
|
||
Net cash (used in) provided by continuing operations
|
|
(947,174
|
)
|
|
214,520
|
|
||
Net cash used in discontinued operations
|
|
(2,109
|
)
|
|
(51,897
|
)
|
||
Net cash (used in) provided by operating activities
|
|
(949,283
|
)
|
|
162,623
|
|
||
Cash flows from investing activities:
|
|
|
|
|
||||
Purchases of fixed-maturities – available-for-sale
|
|
(1,917,030
|
)
|
|
(517,839
|
)
|
||
Purchases of other investments
|
|
(7,450
|
)
|
|
(17,532
|
)
|
||
Net proceeds from sale of discontinued operations
|
|
—
|
|
|
7,500
|
|
||
Proceeds from sales of fixed-maturities – available-for-sale
|
|
845,962
|
|
|
185,089
|
|
||
Proceeds from maturities, paydowns and calls of fixed maturities
|
|
1,766,914
|
|
|
258,293
|
|
||
Proceeds from sale and redemption of other investments
|
|
858
|
|
|
2,160
|
|
||
Other, net
|
|
3,253
|
|
|
(2,985
|
)
|
||
Net cash provided by (used in) investing activities for continuing operations
|
|
692,507
|
|
|
(85,314
|
)
|
||
Net cash (used in) provided by investing activities for discontinued operations
|
|
(6,113
|
)
|
|
112,465
|
|
||
Net cash provided by investing activities
|
|
686,394
|
|
|
27,151
|
|
||
Cash flows from financing activities:
|
|
|
|
|
||||
Repurchase of common shares
|
|
(18
|
)
|
|
(857
|
)
|
||
Dividends paid – Maiden common shareholders
|
|
—
|
|
|
(37,400
|
)
|
||
Dividends paid – preference shares
|
|
—
|
|
|
(25,636
|
)
|
||
Net cash used in financing activities
|
|
(18
|
)
|
|
(63,893
|
)
|
||
Effect of exchange rate changes on foreign currency cash, restricted cash and equivalents
|
|
(1,269
|
)
|
|
(1,131
|
)
|
||
Net (decrease) increase in cash, restricted cash and cash equivalents
|
|
(264,176
|
)
|
|
124,750
|
|
||
Cash, restricted cash and cash equivalents, beginning of period
|
|
337,102
|
|
|
191,503
|
|
||
Cash, restricted cash and cash equivalents, end of period
|
|
72,926
|
|
|
316,253
|
|
||
Less: cash, restricted cash and equivalents of discontinued operations, end of period
|
|
—
|
|
|
(51,679
|
)
|
||
Cash, restricted cash and cash equivalents of continuing operations, end of period
|
|
$
|
72,926
|
|
|
$
|
264,574
|
|
Reconciliation of cash and restricted cash reported within Condensed Consolidated Balance Sheets:
|
|
|
|
|
||||
Cash and cash equivalents, end of period
|
|
$
|
39,755
|
|
|
$
|
94,578
|
|
Restricted cash and cash equivalents, end of period
|
|
33,171
|
|
|
169,996
|
|
||
Total cash, restricted cash and cash equivalents, end of period
|
|
$
|
72,926
|
|
|
$
|
264,574
|
|
Non-cash investing activities
|
|
|
|
|
||||
Investments transferred out related to Partial Termination Amendment and Commutation
|
|
$
|
599,613
|
|
|
$
|
—
|
|
Investments transferred out for transactions under remaining AmTrust Quota Share business
|
|
812,068
|
|
|
—
|
|
||
Investments transferred out related to discontinued operations
|
|
68,262
|
|
|
—
|
|
For the Three Months Ended September 30, 2019
|
|
Diversified Reinsurance
|
|
AmTrust Reinsurance
|
|
Other
|
|
Total
|
||||||||
Gross premiums written
|
|
$
|
14,439
|
|
|
$
|
21,405
|
|
|
$
|
—
|
|
|
$
|
35,844
|
|
Net premiums written
|
|
$
|
14,539
|
|
|
$
|
21,405
|
|
|
$
|
—
|
|
|
$
|
35,944
|
|
Net premiums earned
|
|
$
|
20,492
|
|
|
$
|
74,406
|
|
|
$
|
—
|
|
|
$
|
94,898
|
|
Other insurance revenue
|
|
554
|
|
|
—
|
|
|
—
|
|
|
554
|
|
||||
Net loss and loss adjustment expenses ("loss and LAE")
|
|
(13,807
|
)
|
|
(126,945
|
)
|
|
(108
|
)
|
|
(140,860
|
)
|
||||
Commission and other acquisition expenses
|
|
(7,005
|
)
|
|
(25,758
|
)
|
|
—
|
|
|
(32,763
|
)
|
||||
General and administrative expenses
|
|
(1,849
|
)
|
|
(235
|
)
|
|
—
|
|
|
(2,084
|
)
|
||||
Underwriting loss
|
|
$
|
(1,615
|
)
|
|
$
|
(78,532
|
)
|
|
$
|
(108
|
)
|
|
(80,255
|
)
|
|
Reconciliation to net loss from continuing operations
|
|
|
|
|
|
|
|
|
||||||||
Net investment income and realized gains on investment
|
|
|
|
|
|
|
|
25,923
|
|
|||||||
Total other-than-temporary impairment losses
|
|
|
|
|
|
|
|
(165
|
)
|
|||||||
Interest and amortization expenses
|
|
|
|
|
|
|
|
(4,831
|
)
|
|||||||
Foreign exchange and other gains
|
|
|
|
|
|
|
|
7,827
|
|
|||||||
Other general and administrative expenses
|
|
|
|
|
|
|
|
(6,462
|
)
|
|||||||
Income tax expense
|
|
|
|
|
|
|
|
(87
|
)
|
|||||||
Net loss from continuing operations
|
|
|
|
|
|
|
|
$
|
(58,050
|
)
|
||||||
|
|
|
|
|
|
|
|
|
||||||||
Net loss and LAE ratio(1)
|
|
65.6
|
%
|
|
170.6
|
%
|
|
|
|
147.6
|
%
|
|||||
Commission and other acquisition expense ratio(2)
|
|
33.3
|
%
|
|
34.6
|
%
|
|
|
|
34.3
|
%
|
|||||
General and administrative expense ratio(3)
|
|
8.8
|
%
|
|
0.3
|
%
|
|
|
|
8.9
|
%
|
|||||
Expense ratio(4)
|
|
42.1
|
%
|
|
34.9
|
%
|
|
|
|
43.2
|
%
|
|||||
Combined ratio(5)
|
|
107.7
|
%
|
|
205.5
|
%
|
|
|
|
190.8
|
%
|
For the Three Months Ended September 30, 2018
|
|
Diversified Reinsurance
|
|
AmTrust Reinsurance
|
|
Other
|
|
Total
|
||||||||
Gross premiums written
|
|
$
|
31,698
|
|
|
$
|
452,795
|
|
|
$
|
—
|
|
|
$
|
484,493
|
|
Net premiums written
|
|
$
|
31,291
|
|
|
$
|
451,515
|
|
|
$
|
—
|
|
|
$
|
482,806
|
|
Net premiums earned
|
|
$
|
28,784
|
|
|
$
|
491,293
|
|
|
$
|
—
|
|
|
$
|
520,077
|
|
Other insurance revenue
|
|
1,870
|
|
|
—
|
|
|
—
|
|
|
1,870
|
|
||||
Net loss and LAE
|
|
(19,764
|
)
|
|
(579,163
|
)
|
|
(1,369
|
)
|
|
(600,296
|
)
|
||||
Commission and other acquisition expenses
|
|
(8,961
|
)
|
|
(158,657
|
)
|
|
—
|
|
|
(167,618
|
)
|
||||
General and administrative expenses
|
|
(4,256
|
)
|
|
(952
|
)
|
|
—
|
|
|
(5,208
|
)
|
||||
Underwriting loss
|
|
$
|
(2,327
|
)
|
|
$
|
(247,479
|
)
|
|
$
|
(1,369
|
)
|
|
(251,175
|
)
|
|
Reconciliation to net loss from continuing operations
|
|
|
|
|
|
|
|
|
||||||||
Net investment income and realized losses on investment
|
|
|
|
|
|
|
|
34,194
|
|
|||||||
Total other-than-temporary impairment losses
|
|
|
|
|
|
|
|
(479
|
)
|
|||||||
Interest and amortization expenses
|
|
|
|
|
|
|
|
(4,829
|
)
|
|||||||
Foreign exchange and other losses
|
|
|
|
|
|
|
|
(552
|
)
|
|||||||
Other general and administrative expenses
|
|
|
|
|
|
|
|
(13,999
|
)
|
|||||||
Income tax expense
|
|
|
|
|
|
|
|
(3,573
|
)
|
|||||||
Net loss from continuing operations
|
|
|
|
|
|
|
|
$
|
(240,413
|
)
|
||||||
|
|
|
|
|
|
|
|
|
||||||||
Net loss and LAE ratio(1)
|
|
64.5
|
%
|
|
117.9
|
%
|
|
|
|
115.0
|
%
|
|||||
Commission and other acquisition expense ratio(2)
|
|
29.2
|
%
|
|
32.3
|
%
|
|
|
|
32.1
|
%
|
|||||
General and administrative expense ratio(3)
|
|
13.9
|
%
|
|
0.2
|
%
|
|
|
|
3.7
|
%
|
|||||
Expense ratio(4)
|
|
43.1
|
%
|
|
32.5
|
%
|
|
|
|
35.8
|
%
|
|||||
Combined ratio(5)
|
|
107.6
|
%
|
|
150.4
|
%
|
|
|
|
150.8
|
%
|
For the Nine Months Ended September 30, 2019
|
|
Diversified Reinsurance
|
|
AmTrust Reinsurance
|
|
Other
|
|
Total
|
||||||||
Gross premiums written
|
|
$
|
41,021
|
|
|
$
|
(564,199
|
)
|
|
$
|
—
|
|
|
$
|
(523,178
|
)
|
Net premiums written
|
|
$
|
38,204
|
|
|
$
|
(564,199
|
)
|
|
$
|
—
|
|
|
$
|
(525,995
|
)
|
Net premiums earned
|
|
$
|
68,256
|
|
|
$
|
343,730
|
|
|
$
|
—
|
|
|
$
|
411,986
|
|
Other insurance revenue
|
|
2,058
|
|
|
—
|
|
|
—
|
|
|
2,058
|
|
||||
Net loss and LAE
|
|
(40,695
|
)
|
|
(374,103
|
)
|
|
(312
|
)
|
|
(415,110
|
)
|
||||
Commission and other acquisition expenses
|
|
(24,413
|
)
|
|
(127,623
|
)
|
|
—
|
|
|
(152,036
|
)
|
||||
General and administrative expenses
|
|
(6,972
|
)
|
|
(2,063
|
)
|
|
—
|
|
|
(9,035
|
)
|
||||
Underwriting loss
|
|
$
|
(1,766
|
)
|
|
$
|
(160,059
|
)
|
|
$
|
(312
|
)
|
|
(162,137
|
)
|
|
Reconciliation to net loss from continuing operations
|
|
|
|
|
|
|
|
|
||||||||
Net investment income and realized gains on investment
|
|
|
|
|
|
|
|
102,052
|
|
|||||||
Total other-than-temporary impairment losses
|
|
|
|
|
|
|
|
(165
|
)
|
|||||||
Interest and amortization expenses
|
|
|
|
|
|
|
|
(14,490
|
)
|
|||||||
Foreign exchange and other gains
|
|
|
|
|
|
|
|
14,013
|
|
|||||||
Other general and administrative expenses
|
|
|
|
|
|
|
|
(28,299
|
)
|
|||||||
Income tax benefit
|
|
|
|
|
|
|
|
977
|
|
|||||||
Net loss from continuing operations
|
|
|
|
|
|
|
|
$
|
(88,049
|
)
|
||||||
|
|
|
|
|
|
|
|
|
||||||||
Net loss and LAE ratio(1)
|
|
57.9
|
%
|
|
108.8
|
%
|
|
|
|
100.3
|
%
|
|||||
Commission and other acquisition expense ratio(2)
|
|
34.7
|
%
|
|
37.1
|
%
|
|
|
|
36.7
|
%
|
|||||
General and administrative expense ratio(3)
|
|
9.9
|
%
|
|
0.6
|
%
|
|
|
|
9.0
|
%
|
|||||
Expense ratio(4)
|
|
44.6
|
%
|
|
37.7
|
%
|
|
|
|
45.7
|
%
|
|||||
Combined ratio(5)
|
|
102.5
|
%
|
|
146.5
|
%
|
|
|
|
146.0
|
%
|
For the Nine Months Ended September 30, 2018
|
|
Diversified Reinsurance
|
|
AmTrust Reinsurance
|
|
Other
|
|
Total
|
||||||||
Gross premiums written
|
|
$
|
111,139
|
|
|
$
|
1,518,208
|
|
|
$
|
—
|
|
|
$
|
1,629,347
|
|
Net premiums written
|
|
$
|
109,279
|
|
|
$
|
1,517,206
|
|
|
$
|
—
|
|
|
$
|
1,626,485
|
|
Net premiums earned
|
|
$
|
82,838
|
|
|
$
|
1,458,440
|
|
|
$
|
—
|
|
|
$
|
1,541,278
|
|
Other insurance revenue
|
|
7,629
|
|
|
—
|
|
|
—
|
|
|
7,629
|
|
||||
Net loss and LAE
|
|
(51,828
|
)
|
|
(1,270,306
|
)
|
|
(1,369
|
)
|
|
(1,323,503
|
)
|
||||
Commission and other acquisition expenses
|
|
(28,261
|
)
|
|
(468,765
|
)
|
|
—
|
|
|
(497,026
|
)
|
||||
General and administrative expenses
|
|
(13,330
|
)
|
|
(2,954
|
)
|
|
—
|
|
|
(16,284
|
)
|
||||
Underwriting loss
|
|
$
|
(2,952
|
)
|
|
$
|
(283,585
|
)
|
|
$
|
(1,369
|
)
|
|
(287,906
|
)
|
|
Reconciliation to net loss from continuing operations
|
|
|
|
|
|
|
|
|
||||||||
Net investment income and realized losses on investment
|
|
|
|
|
|
|
|
101,266
|
|
|||||||
Total other-than-temporary impairment losses
|
|
|
|
|
|
|
|
(479
|
)
|
|||||||
Interest and amortization expenses
|
|
|
|
|
|
|
|
(14,487
|
)
|
|||||||
Foreign exchange and other gains
|
|
|
|
|
|
|
|
1,862
|
|
|||||||
Other general and administrative expenses
|
|
|
|
|
|
|
|
(33,454
|
)
|
|||||||
Income tax expense
|
|
|
|
|
|
|
|
(402
|
)
|
|||||||
Net loss from continuing operations
|
|
|
|
|
|
|
|
$
|
(233,600
|
)
|
||||||
|
|
|
|
|
|
|
|
|
||||||||
Net loss and LAE ratio(1)
|
|
57.3
|
%
|
|
87.1
|
%
|
|
|
|
85.4
|
%
|
|||||
Commission and other acquisition expense ratio(2)
|
|
31.3
|
%
|
|
32.1
|
%
|
|
|
|
32.1
|
%
|
|||||
General and administrative expense ratio(3)
|
|
14.7
|
%
|
|
0.2
|
%
|
|
|
|
3.2
|
%
|
|||||
Expense ratio(4)
|
|
46.0
|
%
|
|
32.3
|
%
|
|
|
|
35.3
|
%
|
|||||
Combined ratio(5)
|
|
103.3
|
%
|
|
119.4
|
%
|
|
|
|
120.7
|
%
|
(1)
|
Calculated by dividing net loss and LAE by the sum of net premiums earned and other insurance revenue.
|
(2)
|
Calculated by dividing commission and other acquisition expenses by the sum of net premiums earned and other insurance revenue.
|
(3)
|
Calculated by dividing general and administrative expenses by the sum of net premiums earned and other insurance revenue.
|
(4)
|
Calculated by adding together the commission and other acquisition expense ratio and general and administrative expense ratio.
|
(5)
|
Calculated by adding together net loss and LAE ratio and the expense ratio.
|
September 30, 2019
|
|
Diversified Reinsurance
|
|
AmTrust Reinsurance
|
|
Total
|
||||||
Total assets - reportable segments
|
|
$
|
166,032
|
|
|
$
|
3,060,970
|
|
|
$
|
3,227,002
|
|
Corporate assets
|
|
—
|
|
|
—
|
|
|
564,953
|
|
|||
Total Assets
|
|
$
|
166,032
|
|
|
$
|
3,060,970
|
|
|
$
|
3,791,955
|
|
|
|
|
|
|
|
|
||||||
December 31, 2018
|
|
Diversified Reinsurance
|
|
AmTrust Reinsurance
|
|
Total
|
||||||
Total assets - reportable segments
|
|
$
|
190,437
|
|
|
$
|
4,495,740
|
|
|
$
|
4,686,177
|
|
Corporate assets
|
|
—
|
|
|
—
|
|
|
497,655
|
|
|||
Assets held for sale
|
|
—
|
|
|
—
|
|
|
103,628
|
|
|||
Total Assets
|
|
$
|
190,437
|
|
|
$
|
4,495,740
|
|
|
$
|
5,287,460
|
|
For the Three Months Ended September 30,
|
|
2019
|
2018
|
|||||
Net premiums written
|
|
Total
|
Total
|
|||||
Diversified Reinsurance
|
|
|
|
|
||||
International
|
|
$
|
14,563
|
|
|
$
|
31,291
|
|
Other
|
|
(24
|
)
|
|
—
|
|
||
Total Diversified Reinsurance
|
|
14,539
|
|
|
31,291
|
|
||
AmTrust Reinsurance
|
|
|
|
|
||||
Small Commercial Business
|
|
8,050
|
|
|
232,163
|
|
||
Specialty Program
|
|
4,139
|
|
|
94,077
|
|
||
Specialty Risk and Extended Warranty
|
|
9,216
|
|
|
125,275
|
|
||
Total AmTrust Reinsurance
|
|
21,405
|
|
|
451,515
|
|
||
Total Net Premiums Written
|
|
$
|
35,944
|
|
|
$
|
482,806
|
|
For the Nine Months Ended September 30,
|
|
2019
|
2018
|
|||||
Net premiums written
|
|
Total
|
Total
|
|||||
Diversified Reinsurance
|
|
|
|
|
||||
International
|
|
$
|
38,246
|
|
|
$
|
109,238
|
|
Other
|
|
(42
|
)
|
|
41
|
|
||
Total Diversified Reinsurance
|
|
38,204
|
|
|
109,279
|
|
||
AmTrust Reinsurance
|
|
|
|
|
||||
Small Commercial Business
|
|
(329,116
|
)
|
|
879,403
|
|
||
Specialty Program
|
|
(24,500
|
)
|
|
286,404
|
|
||
Specialty Risk and Extended Warranty
|
|
(210,583
|
)
|
|
351,399
|
|
||
Total AmTrust Reinsurance
|
|
(564,199
|
)
|
|
1,517,206
|
|
||
Total Net Premiums Written
|
|
$
|
(525,995
|
)
|
|
$
|
1,626,485
|
|
For the Three Months Ended September 30,
|
|
2019
|
2018
|
|||||
Net premiums earned
|
|
Total
|
Total
|
|||||
Diversified Reinsurance
|
|
|
|
|
||||
International
|
|
$
|
20,516
|
|
|
$
|
28,784
|
|
Other
|
|
(24
|
)
|
|
—
|
|
||
Total Diversified Reinsurance
|
|
20,492
|
|
|
28,784
|
|
||
AmTrust Reinsurance
|
|
|
|
|
||||
Small Commercial Business
|
|
18,686
|
|
|
273,456
|
|
||
Specialty Program
|
|
22,204
|
|
|
98,359
|
|
||
Specialty Risk and Extended Warranty
|
|
33,516
|
|
|
119,478
|
|
||
Total AmTrust Reinsurance
|
|
74,406
|
|
|
491,293
|
|
||
Total Net Premiums Earned
|
|
$
|
94,898
|
|
|
$
|
520,077
|
|
For the Nine Months Ended September 30,
|
|
2019
|
2018
|
|||||
Net premiums earned
|
|
Total
|
Total
|
|||||
Diversified Reinsurance
|
|
|
|
|
||||
International
|
|
$
|
68,298
|
|
|
$
|
82,797
|
|
Other
|
|
(42
|
)
|
|
41
|
|
||
Total Diversified Reinsurance
|
|
68,256
|
|
|
82,838
|
|
||
AmTrust Reinsurance
|
|
|
|
|
||||
Small Commercial Business
|
|
81,424
|
|
|
882,679
|
|
||
Specialty Program
|
|
128,751
|
|
|
283,592
|
|
||
Specialty Risk and Extended Warranty
|
|
133,555
|
|
|
292,169
|
|
||
Total AmTrust Reinsurance
|
|
343,730
|
|
|
1,458,440
|
|
||
Total Net Premiums Earned
|
|
$
|
411,986
|
|
|
$
|
1,541,278
|
|
a)
|
Fixed Maturities
|
September 30, 2019
|
|
Original or amortized cost
|
|
Gross unrealized gains
|
|
Gross unrealized losses
|
|
Fair value
|
||||||||
AFS fixed maturities:
|
|
|
|
|
|
|
|
|
||||||||
U.S. treasury bonds
|
|
$
|
94,971
|
|
|
$
|
780
|
|
|
$
|
—
|
|
|
$
|
95,751
|
|
U.S. agency bonds – mortgage-backed
|
|
748,135
|
|
|
12,120
|
|
|
(1,265
|
)
|
|
758,990
|
|
||||
Non-U.S. government and supranational bonds
|
|
11,899
|
|
|
201
|
|
|
(340
|
)
|
|
11,760
|
|
||||
Asset-backed securities
|
|
172,919
|
|
|
828
|
|
|
(521
|
)
|
|
173,226
|
|
||||
Corporate bonds
|
|
1,008,823
|
|
|
28,963
|
|
|
(22,130
|
)
|
|
1,015,656
|
|
||||
Municipal bonds
|
|
4,105
|
|
|
72
|
|
|
—
|
|
|
4,177
|
|
||||
Total fixed maturity investments
|
|
$
|
2,040,852
|
|
|
$
|
42,964
|
|
|
$
|
(24,256
|
)
|
|
$
|
2,059,560
|
|
December 31, 2018
|
|
Original or amortized cost
|
|
Gross unrealized gains
|
|
Gross unrealized losses
|
|
Fair value
|
||||||||
AFS fixed maturities:
|
|
|
|
|
|
|
|
|
||||||||
U.S. treasury bonds
|
|
$
|
138,625
|
|
|
$
|
448
|
|
|
$
|
(1
|
)
|
|
$
|
139,072
|
|
U.S. agency bonds – mortgage-backed
|
|
1,485,716
|
|
|
3,491
|
|
|
(36,073
|
)
|
|
1,453,134
|
|
||||
U.S. agency bonds – other
|
|
129,741
|
|
|
40
|
|
|
(548
|
)
|
|
129,233
|
|
||||
Non-U.S. government and supranational bonds
|
|
11,212
|
|
|
66
|
|
|
(1,206
|
)
|
|
10,072
|
|
||||
Asset-backed securities
|
|
216,072
|
|
|
425
|
|
|
(1,415
|
)
|
|
215,082
|
|
||||
Corporate bonds
|
|
1,128,614
|
|
|
6,525
|
|
|
(30,164
|
)
|
|
1,104,975
|
|
||||
Total AFS fixed maturities
|
|
3,109,980
|
|
|
10,995
|
|
|
(69,407
|
)
|
|
3,051,568
|
|
||||
HTM fixed maturities:
|
|
|
|
|
|
|
|
|
||||||||
Corporate bonds
|
|
957,845
|
|
|
3,872
|
|
|
(20,990
|
)
|
|
940,727
|
|
||||
Municipal bonds
|
|
57,836
|
|
|
—
|
|
|
(551
|
)
|
|
57,285
|
|
||||
Total HTM fixed maturities
|
|
1,015,681
|
|
|
3,872
|
|
|
(21,541
|
)
|
|
998,012
|
|
||||
Total fixed maturity investments
|
|
$
|
4,125,661
|
|
|
$
|
14,867
|
|
|
$
|
(90,948
|
)
|
|
$
|
4,049,580
|
|
September 30, 2019
|
|
Amortized cost
|
|
Fair value
|
||||
Maturity
|
|
|
|
|
||||
Due in one year or less
|
|
$
|
87,797
|
|
|
$
|
85,711
|
|
Due after one year through five years
|
|
661,447
|
|
|
656,888
|
|
||
Due after five years through ten years
|
|
370,554
|
|
|
384,745
|
|
||
|
|
1,119,798
|
|
|
1,127,344
|
|
||
U.S. agency bonds – mortgage-backed
|
|
748,135
|
|
|
758,990
|
|
||
Asset-backed securities
|
|
172,919
|
|
|
173,226
|
|
||
Total fixed maturities
|
|
$
|
2,040,852
|
|
|
$
|
2,059,560
|
|
|
|
Less than 12 Months
|
|
12 Months or More
|
|
Total
|
||||||||||||||||||
September 30, 2019
|
|
Fair
value |
|
Unrealized
losses |
|
Fair
value |
|
Unrealized
losses |
|
Fair
value |
|
Unrealized
losses |
||||||||||||
Fixed maturities
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. agency bonds – mortgage-backed
|
|
$
|
40,557
|
|
|
$
|
(395
|
)
|
|
$
|
133,453
|
|
|
$
|
(870
|
)
|
|
$
|
174,010
|
|
|
$
|
(1,265
|
)
|
Non-U.S. government and supranational bonds
|
|
6,251
|
|
|
(250
|
)
|
|
681
|
|
|
(90
|
)
|
|
6,932
|
|
|
(340
|
)
|
||||||
Asset-backed securities
|
|
64,556
|
|
|
(295
|
)
|
|
13,167
|
|
|
(226
|
)
|
|
77,723
|
|
|
(521
|
)
|
||||||
Corporate bonds
|
|
75,767
|
|
|
(1,862
|
)
|
|
159,516
|
|
|
(20,268
|
)
|
|
235,283
|
|
|
(22,130
|
)
|
||||||
Total temporarily impaired fixed maturities
|
|
$
|
187,131
|
|
|
$
|
(2,802
|
)
|
|
$
|
306,817
|
|
|
$
|
(21,454
|
)
|
|
$
|
493,948
|
|
|
$
|
(24,256
|
)
|
|
|
Less than 12 Months
|
|
12 Months or More
|
|
Total
|
||||||||||||||||||
December 31, 2018
|
|
Fair
value |
|
Unrealized
losses |
|
Fair
value |
|
Unrealized
losses |
|
Fair
value |
|
Unrealized
losses |
||||||||||||
Fixed maturities
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. treasury bonds
|
|
$
|
125
|
|
|
$
|
(1
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
125
|
|
|
$
|
(1
|
)
|
U.S. agency bonds – mortgage-backed
|
|
416,147
|
|
|
(6,624
|
)
|
|
838,091
|
|
|
(29,449
|
)
|
|
1,254,238
|
|
|
(36,073
|
)
|
||||||
U.S. agency bonds – other
|
|
26,838
|
|
|
(27
|
)
|
|
17,462
|
|
|
(521
|
)
|
|
44,300
|
|
|
(548
|
)
|
||||||
Non-U.S. government and supranational bonds
|
|
4,024
|
|
|
(252
|
)
|
|
3,770
|
|
|
(954
|
)
|
|
7,794
|
|
|
(1,206
|
)
|
||||||
Asset-backed securities
|
|
74,801
|
|
|
(1,196
|
)
|
|
5,793
|
|
|
(219
|
)
|
|
80,594
|
|
|
(1,415
|
)
|
||||||
Corporate bonds
|
|
1,052,765
|
|
|
(30,334
|
)
|
|
286,542
|
|
|
(20,820
|
)
|
|
1,339,307
|
|
|
(51,154
|
)
|
||||||
Municipal bonds
|
|
20,379
|
|
|
(261
|
)
|
|
36,906
|
|
|
(290
|
)
|
|
57,285
|
|
|
(551
|
)
|
||||||
Total temporarily impaired fixed maturities
|
|
$
|
1,595,079
|
|
|
$
|
(38,695
|
)
|
|
$
|
1,188,564
|
|
|
$
|
(52,253
|
)
|
|
$
|
2,783,643
|
|
|
$
|
(90,948
|
)
|
September 30, 2019
|
|
Amortized cost
|
|
Fair value
|
|
% of Total
fair value |
|||||
U.S. treasury bonds
|
|
$
|
94,971
|
|
|
$
|
95,751
|
|
|
4.6
|
%
|
U.S. agency bonds
|
|
748,135
|
|
|
758,990
|
|
|
36.9
|
%
|
||
AAA
|
|
81,012
|
|
|
81,402
|
|
|
4.0
|
%
|
||
AA+, AA, AA-
|
|
108,536
|
|
|
107,721
|
|
|
5.2
|
%
|
||
A+, A, A-
|
|
557,135
|
|
|
563,227
|
|
|
27.3
|
%
|
||
BBB+, BBB, BBB-
|
|
445,290
|
|
|
447,141
|
|
|
21.7
|
%
|
||
BB+ or lower
|
|
5,773
|
|
|
5,328
|
|
|
0.3
|
%
|
||
Total fixed maturities (1)
|
|
$
|
2,040,852
|
|
|
$
|
2,059,560
|
|
|
100.0
|
%
|
December 31, 2018
|
|
Amortized cost
|
|
Fair value
|
|
% of Total
fair value |
|||||
U.S. treasury bonds
|
|
$
|
138,625
|
|
|
$
|
139,072
|
|
|
3.4
|
%
|
U.S. agency bonds
|
|
1,615,457
|
|
|
1,582,367
|
|
|
39.1
|
%
|
||
AAA
|
|
137,172
|
|
|
135,119
|
|
|
3.3
|
%
|
||
AA+, AA, AA-
|
|
183,142
|
|
|
178,674
|
|
|
4.4
|
%
|
||
A+, A, A-
|
|
1,132,993
|
|
|
1,113,710
|
|
|
27.5
|
%
|
||
BBB+, BBB, BBB-
|
|
866,043
|
|
|
848,348
|
|
|
21.0
|
%
|
||
BB+ or lower
|
|
52,229
|
|
|
52,290
|
|
|
1.3
|
%
|
||
Total fixed maturities(1)
|
|
$
|
4,125,661
|
|
|
$
|
4,049,580
|
|
|
100.0
|
%
|
(1)
|
Ratings above are based on Standard & Poor’s ("S&P"), or equivalent, ratings.
|
b)
|
Other Investments
|
|
|
September 30, 2019
|
|
December 31, 2018
|
||||||||||
|
|
Fair value
|
|
% of Total
fair value |
|
Fair value
|
|
% of Total
fair value |
||||||
Investment in limited partnerships
|
|
$
|
3,079
|
|
|
10.1
|
%
|
|
$
|
3,833
|
|
|
16.2
|
%
|
Investment in special purpose vehicles focused on lending activities
|
|
25,533
|
|
|
84.0
|
%
|
|
18,383
|
|
|
77.5
|
%
|
||
Other
|
|
1,800
|
|
|
5.9
|
%
|
|
1,500
|
|
|
6.3
|
%
|
||
Total other investments
|
|
$
|
30,412
|
|
|
100.0
|
%
|
|
$
|
23,716
|
|
|
100.0
|
%
|
c)
|
Net Investment Income
|
|
|
For the Three Months Ended September 30,
|
|
For the Nine Months Ended September 30,
|
||||||||||||
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Fixed maturities
|
|
$
|
19,798
|
|
|
$
|
32,443
|
|
|
$
|
69,540
|
|
|
$
|
97,485
|
|
Funds withheld interest
|
|
5,267
|
|
|
234
|
|
|
14,973
|
|
|
347
|
|
||||
Loan to related party
|
|
1,777
|
|
|
1,658
|
|
|
5,441
|
|
|
4,651
|
|
||||
Cash and cash equivalents and other
|
|
599
|
|
|
1,142
|
|
|
2,190
|
|
|
2,310
|
|
||||
|
|
27,441
|
|
|
35,477
|
|
|
92,144
|
|
|
104,793
|
|
||||
Interest paid on LPT/ADC and Commutation (1)
|
|
(13,596
|
)
|
|
—
|
|
|
(13,596
|
)
|
|
—
|
|
||||
Investment expenses
|
|
(622
|
)
|
|
(1,058
|
)
|
|
(2,181
|
)
|
|
(3,245
|
)
|
||||
Net investment income
|
|
$
|
13,223
|
|
|
$
|
34,419
|
|
|
$
|
76,367
|
|
|
$
|
101,548
|
|
d)
|
Realized Gains (Losses) on Investment
|
For the Three Months Ended September 30, 2019
|
|
Gross gains
|
|
Gross losses
|
|
Net
|
||||||
AFS fixed maturities
|
|
$
|
13,506
|
|
|
$
|
(904
|
)
|
|
$
|
12,602
|
|
Other investments
|
|
98
|
|
|
—
|
|
|
98
|
|
|||
Net realized gains (losses) on investment
|
|
$
|
13,604
|
|
|
$
|
(904
|
)
|
|
$
|
12,700
|
|
|
|
|
|
|
|
|
||||||
For the Three Months Ended September 30, 2018
|
|
Gross gains
|
|
Gross losses
|
|
Net
|
||||||
AFS fixed maturities
|
|
$
|
40
|
|
|
$
|
(558
|
)
|
|
$
|
(518
|
)
|
Other investments
|
|
293
|
|
|
—
|
|
|
293
|
|
|||
Net realized gains (losses) on investment
|
|
$
|
333
|
|
|
$
|
(558
|
)
|
|
$
|
(225
|
)
|
|
|
|
|
|
|
|
||||||
For the Nine Months Ended September 30, 2019
|
|
Gross gains
|
|
Gross losses
|
|
Net
|
||||||
AFS fixed maturities
|
|
$
|
41,366
|
|
|
$
|
(15,785
|
)
|
|
$
|
25,581
|
|
Other investments
|
|
249
|
|
|
(145
|
)
|
|
104
|
|
|||
Net realized gains (losses) on investment
|
|
$
|
41,615
|
|
|
$
|
(15,930
|
)
|
|
$
|
25,685
|
|
|
|
|
|
|
|
|
||||||
For the Nine Months Ended September 30, 2018
|
|
Gross gains
|
|
Gross losses
|
|
Net
|
||||||
AFS fixed maturities
|
|
$
|
2,979
|
|
|
$
|
(5,256
|
)
|
|
$
|
(2,277
|
)
|
Other investments
|
|
1,995
|
|
|
—
|
|
|
1,995
|
|
|||
Net realized gains (losses) on investment
|
|
$
|
4,974
|
|
|
$
|
(5,256
|
)
|
|
$
|
(282
|
)
|
|
|
September 30, 2019
|
|
December 31, 2018
|
||||
Fixed maturities
|
|
$
|
18,708
|
|
|
$
|
(59,729
|
)
|
Deferred income tax
|
|
(126
|
)
|
|
(33
|
)
|
||
Net unrealized gains (losses), net of deferred income tax
|
|
$
|
18,582
|
|
|
$
|
(59,762
|
)
|
Change, net of deferred income tax
|
|
$
|
78,344
|
|
|
$
|
(81,651
|
)
|
For the Three Months Ended September 30,
|
|
2019
|
|
2018
|
||||
Net gains recognized in net income on other investments during the period
|
|
$
|
98
|
|
|
$
|
293
|
|
Net realized gains recognized on other investments divested during the period
|
|
(181
|
)
|
|
(758
|
)
|
||
Net unrealized losses recognized on other investments still held at end of period
|
|
$
|
(83
|
)
|
|
$
|
(465
|
)
|
|
|
|
|
|
||||
For the Nine Months Ended September 30,
|
|
2019
|
|
2018
|
||||
Net gains recognized in net income on other investments during the period
|
|
$
|
104
|
|
|
$
|
1,995
|
|
Net realized gains recognized on other investments divested during the period
|
|
(592
|
)
|
|
(1,637
|
)
|
||
Net unrealized (losses) gains recognized on other investments still held at end of period
|
|
$
|
(488
|
)
|
|
$
|
358
|
|
e)
|
Restricted Cash and Cash Equivalents and Investments
|
|
|
September 30, 2019
|
|
December 31, 2018
|
||||
Restricted cash – third party agreements
|
|
$
|
21,346
|
|
|
$
|
21,420
|
|
Restricted cash – related party agreements
|
|
11,825
|
|
|
108,728
|
|
||
Total restricted cash
|
|
33,171
|
|
|
130,148
|
|
||
Restricted investments – in trust for third party agreements at fair value (amortized cost: 2019 – $63,824; 2018 – $88,841)
|
|
63,841
|
|
|
89,596
|
|
||
Restricted investments – in trust for related party agreements at fair value (amortized cost: 2019 – $1,585,010; 2018 – $3,870,731)
|
|
1,601,064
|
|
|
3,804,215
|
|
||
Total restricted investments
|
|
1,664,905
|
|
|
3,893,811
|
|
||
Total restricted cash and investments
|
|
$
|
1,698,076
|
|
|
$
|
4,023,959
|
|
•
|
Level 1 — Valuations based on unadjusted quoted market prices for identical assets or liabilities that we have the ability to access. Because valuations are based on quoted prices that are readily and regularly available in an active market, valuation of these products does not entail a significant degree of judgment. Examples of assets and liabilities utilizing Level 1 inputs include: U.S. Treasury bonds;
|
•
|
Level 2 — Valuations based on quoted prices for similar assets or liabilities in active markets, quoted prices for identical assets or liabilities in inactive markets, or valuations based on models where the significant inputs are observable (e.g. interest rates, yield curves, prepayment speeds, default rates, loss severities, etc.) or can be corroborated by observable market data. Examples of assets and liabilities utilizing Level 2 inputs include: U.S. government-sponsored agency securities; non-U.S. government and supranational obligations; commercial mortgage-backed securities ("CMBS"); collateralized loan obligations ("CLO"); corporate and municipal bonds; and
|
•
|
Level 3 — Valuations based on models where significant inputs are not observable. The unobservable inputs reflect our own assumptions about assumptions that market participants would use. Examples of assets and liabilities utilizing Level 3 inputs include: an investment in preference shares of a start-up insurance producer.
|
September 30, 2019
|
|
Quoted Prices in Active Markets for Identical Assets (Level 1)
|
|
Significant Other Observable Inputs (Level 2)
|
|
Significant Unobservable Inputs (Level 3)
|
|
Fair Value Based on NAV Practical Expedient
|
|
Total Fair Value
|
||||||||||
AFS fixed maturities
|
|
|
|
|
|
|
|
|
|
|
||||||||||
U.S. treasury bonds
|
|
$
|
95,751
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
95,751
|
|
U.S. agency bonds – mortgage-backed
|
|
—
|
|
|
758,990
|
|
|
—
|
|
|
—
|
|
|
758,990
|
|
|||||
Non-U.S. government and supranational bonds
|
|
—
|
|
|
11,760
|
|
|
—
|
|
|
—
|
|
|
11,760
|
|
|||||
Asset-backed securities
|
|
—
|
|
|
173,226
|
|
|
—
|
|
|
—
|
|
|
173,226
|
|
|||||
Corporate bonds
|
|
—
|
|
|
1,015,656
|
|
|
—
|
|
|
—
|
|
|
1,015,656
|
|
|||||
Municipal bonds
|
|
—
|
|
|
4,177
|
|
|
—
|
|
|
—
|
|
|
4,177
|
|
|||||
Other investments
|
|
—
|
|
|
—
|
|
|
27,333
|
|
|
3,079
|
|
|
30,412
|
|
|||||
Total
|
|
$
|
95,751
|
|
|
$
|
1,963,809
|
|
|
$
|
27,333
|
|
|
$
|
3,079
|
|
|
$
|
2,089,972
|
|
As a percentage of total assets
|
|
2.5
|
%
|
|
51.8
|
%
|
|
0.7
|
%
|
|
0.1
|
%
|
|
55.1
|
%
|
December 31, 2018
|
|
Quoted Prices in Active Markets for Identical Assets (Level 1)
|
|
Significant Other Observable Inputs (Level 2)
|
|
Significant Unobservable Inputs (Level 3)
|
|
Fair Value Based on NAV Practical Expedient
|
|
Total Fair Value
|
||||||||||
AFS fixed maturities
|
|
|
|
|
|
|
|
|
|
|
||||||||||
U.S. treasury bonds
|
|
$
|
139,072
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
139,072
|
|
U.S. agency bonds – mortgage-backed
|
|
—
|
|
|
1,453,134
|
|
|
—
|
|
|
—
|
|
|
1,453,134
|
|
|||||
U.S. agency bonds – other
|
|
—
|
|
|
129,233
|
|
|
—
|
|
|
—
|
|
|
129,233
|
|
|||||
Non-U.S. government and supranational bonds
|
|
—
|
|
|
10,072
|
|
|
—
|
|
|
—
|
|
|
10,072
|
|
|||||
Asset-backed securities
|
|
—
|
|
|
215,082
|
|
|
—
|
|
|
—
|
|
|
215,082
|
|
|||||
Corporate bonds
|
|
—
|
|
|
1,104,975
|
|
|
—
|
|
|
—
|
|
|
1,104,975
|
|
|||||
Other investments
|
|
—
|
|
|
—
|
|
|
19,883
|
|
|
3,833
|
|
|
23,716
|
|
|||||
Total
|
|
$
|
139,072
|
|
|
$
|
2,912,496
|
|
|
$
|
19,883
|
|
|
$
|
3,833
|
|
|
$
|
3,075,284
|
|
As a percentage of total assets
|
|
2.6
|
%
|
|
55.1
|
%
|
|
0.4
|
%
|
|
0.1
|
%
|
|
58.2
|
%
|
|
|
September 30, 2019
|
|
December 31, 2018
|
||||||||||||
Financial Assets
|
|
Carrying Value
|
|
Fair Value
|
|
Carrying Value
|
|
Fair Value
|
||||||||
HTM – corporate bonds
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
957,845
|
|
|
$
|
940,727
|
|
HTM – municipal bonds
|
|
—
|
|
|
—
|
|
|
57,836
|
|
|
57,285
|
|
||||
Total financial assets
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,015,681
|
|
|
$
|
998,012
|
|
|
|
|
|
|
|
|
|
|
||||||||
Financial Liabilities
|
|
|
|
|
|
|
|
|
||||||||
Senior Notes - MHLA – 6.625%
|
|
$
|
110,000
|
|
|
$
|
78,540
|
|
|
$
|
110,000
|
|
|
$
|
75,240
|
|
Senior Notes - MHNC – 7.75%
|
|
152,500
|
|
|
133,590
|
|
|
152,500
|
|
|
143,960
|
|
||||
Total financial liabilities
|
|
$
|
262,500
|
|
|
$
|
212,130
|
|
|
$
|
262,500
|
|
|
$
|
219,200
|
|
|
|
September 30, 2019
|
|
December 31, 2018
|
||||
ASSETS
|
|
|
|
|
||||
Fixed maturities, available-for-sale, at fair value
|
|
$
|
—
|
|
|
$
|
63,560
|
|
Restricted cash and cash equivalents
|
|
—
|
|
|
6,113
|
|
||
Other assets
|
|
—
|
|
|
33,955
|
|
||
Total assets held for sale
|
|
$
|
—
|
|
|
$
|
103,628
|
|
LIABILITIES
|
|
|
|
|
||||
Reserve for loss and loss adjustment expenses
|
|
$
|
—
|
|
|
$
|
6,363
|
|
Accrued expenses and other liabilities
|
|
—
|
|
|
78,751
|
|
||
Total liabilities held for sale
|
|
$
|
—
|
|
|
$
|
85,114
|
|
|
|
For the Three Months Ended September 30,
|
|
For the Nine Months Ended September 30,
|
||||||||||||
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Gross premiums written
|
|
$
|
—
|
|
|
$
|
130,200
|
|
|
$
|
—
|
|
|
$
|
492,222
|
|
Net premiums written
|
|
$
|
—
|
|
|
$
|
128,398
|
|
|
$
|
—
|
|
|
$
|
479,640
|
|
Net premiums earned
|
|
$
|
—
|
|
|
$
|
170,579
|
|
|
$
|
—
|
|
|
$
|
502,156
|
|
Other revenue
|
|
—
|
|
|
—
|
|
|
62
|
|
|
—
|
|
||||
Net investment income
|
|
—
|
|
|
9,675
|
|
|
—
|
|
|
29,729
|
|
||||
Net loss and loss adjustment expenses
|
|
—
|
|
|
(129,414
|
)
|
|
6,363
|
|
|
(371,085
|
)
|
||||
Commission and other acquisition expenses
|
|
—
|
|
|
(44,158
|
)
|
|
—
|
|
|
(122,109
|
)
|
||||
General and administrative expenses
|
|
(351
|
)
|
|
(10,658
|
)
|
|
(2,183
|
)
|
|
(19,651
|
)
|
||||
Amortization of intangible assets
|
|
—
|
|
|
(462
|
)
|
|
—
|
|
|
(1,386
|
)
|
||||
(Loss) income from discontinued operations before income tax
|
|
(351
|
)
|
|
(4,438
|
)
|
|
4,242
|
|
|
17,654
|
|
||||
Loss on disposal of discontinued operations
|
|
—
|
|
|
(66,697
|
)
|
|
(25,474
|
)
|
|
(66,697
|
)
|
||||
Income tax benefit (expense)
|
|
74
|
|
|
11,316
|
|
|
(1,095
|
)
|
|
7,434
|
|
||||
Loss from discontinued operations, net of income tax
|
|
$
|
(277
|
)
|
|
$
|
(59,819
|
)
|
|
$
|
(22,327
|
)
|
|
$
|
(41,609
|
)
|
September 30, 2019
|
|
2016 Senior Notes
|
|
2013 Senior Notes
|
|
Total
|
||||||
Principal amount
|
|
$
|
110,000
|
|
|
$
|
152,500
|
|
|
$
|
262,500
|
|
Less: unamortized issuance costs
|
|
3,576
|
|
|
4,070
|
|
|
7,646
|
|
|||
Carrying value
|
|
$
|
106,424
|
|
|
$
|
148,430
|
|
|
$
|
254,854
|
|
|
|
|
|
|
|
|
||||||
December 31, 2018
|
|
2016 Senior Notes
|
|
2013 Senior Notes
|
|
Total
|
||||||
Principal amount
|
|
$
|
110,000
|
|
|
$
|
152,500
|
|
|
$
|
262,500
|
|
Less: unamortized issuance costs
|
|
3,610
|
|
|
4,196
|
|
|
7,806
|
|
|||
Carrying value
|
|
$
|
106,390
|
|
|
$
|
148,304
|
|
|
$
|
254,694
|
|
|
|
|
|
|
|
|
||||||
Other details:
|
|
|
|
|
|
|
||||||
Original debt issuance costs
|
|
$
|
3,715
|
|
|
$
|
5,054
|
|
|
|
||
Maturity date
|
|
June 14, 2046
|
|
|
Dec 1, 2043
|
|
|
|
||||
Earliest redeemable date (for cash)
|
|
June 14, 2021
|
|
|
Dec 1, 2018
|
|
|
|
||||
Coupon rate
|
|
6.625
|
%
|
|
7.75
|
%
|
|
|
||||
Effective interest rate
|
|
7.07
|
%
|
|
8.04
|
%
|
|
|
For the Nine Months Ended September 30,
|
|
2019
|
|
2018
|
||||
Premiums written
|
|
|
|
|
||||
Direct
|
|
$
|
12,819
|
|
|
$
|
8,074
|
|
Assumed
|
|
(535,997
|
)
|
|
1,621,273
|
|
||
Ceded
|
|
(2,817
|
)
|
|
(2,862
|
)
|
||
Net
|
|
$
|
(525,995
|
)
|
|
$
|
1,626,485
|
|
Premiums earned
|
|
|
|
|
||||
Direct
|
|
$
|
11,903
|
|
|
$
|
7,797
|
|
Assumed
|
|
402,197
|
|
|
1,549,339
|
|
||
Ceded
|
|
(2,114
|
)
|
|
(15,858
|
)
|
||
Net
|
|
$
|
411,986
|
|
|
$
|
1,541,278
|
|
Loss and LAE
|
|
|
|
|
||||
Gross loss and LAE
|
|
$
|
415,429
|
|
|
$
|
1,328,591
|
|
Loss and LAE ceded
|
|
(319
|
)
|
|
(5,088
|
)
|
||
Net
|
|
$
|
415,110
|
|
|
$
|
1,323,503
|
|
|
|
September 30, 2019
|
|
December 31, 2018
|
||||
Reserve for reported loss and LAE
|
|
$
|
1,360,076
|
|
|
$
|
1,619,776
|
|
Reserve for losses incurred but not reported ("IBNR")
|
|
1,265,782
|
|
|
1,506,358
|
|
||
Reserve for loss and LAE
|
|
$
|
2,625,858
|
|
|
$
|
3,126,134
|
|
For the Nine Months Ended September 30,
|
|
2019
|
|
2018
|
||||
Gross loss and LAE reserves, January 1
|
|
$
|
3,126,134
|
|
|
$
|
2,464,442
|
|
Less: reinsurance recoverable on unpaid losses, January 1
|
|
71,901
|
|
|
24,883
|
|
||
Net loss and LAE reserves, January 1
|
|
3,054,233
|
|
|
2,439,559
|
|
||
Net incurred losses related to:
|
|
|
|
|
||||
Current year
|
|
318,654
|
|
|
1,073,052
|
|
||
Prior years
|
|
96,456
|
|
|
250,451
|
|
||
|
|
415,110
|
|
|
1,323,503
|
|
||
Net paid losses related to:
|
|
|
|
|
||||
Current year
|
|
(8,969
|
)
|
|
(283,477
|
)
|
||
Prior years
|
|
(872,125
|
)
|
|
(555,718
|
)
|
||
|
|
(881,094
|
)
|
|
(839,195
|
)
|
||
Retroactive reinsurance adjustment
|
|
(549,542
|
)
|
|
—
|
|
||
Effect of foreign exchange rate movements
|
|
(28,330
|
)
|
|
(16,202
|
)
|
||
Other adjustments
|
|
—
|
|
|
14,540
|
|
||
Net loss and LAE reserves, September 30
|
|
2,010,377
|
|
|
2,922,205
|
|
||
Reinsurance recoverable on unpaid losses, September 30
|
|
615,481
|
|
|
1,811
|
|
||
Gross loss and LAE reserves, September 30
|
|
$
|
2,625,858
|
|
|
$
|
2,924,016
|
|
|
|
For the Three Months Ended September 30,
|
|
For the Nine Months Ended September 30,
|
||||||||||||
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Gross and net premiums written
|
|
$
|
21,405
|
|
|
$
|
452,795
|
|
|
$
|
(564,199
|
)
|
|
$
|
1,518,208
|
|
Net premiums earned
|
|
74,407
|
|
|
491,613
|
|
|
344,370
|
|
|
1,472,614
|
|
||||
Net loss and LAE
|
|
(126,945
|
)
|
|
(579,240
|
)
|
|
(373,980
|
)
|
|
(1,275,723
|
)
|
||||
Commission expenses
|
|
(24,829
|
)
|
|
(152,511
|
)
|
|
(123,319
|
)
|
|
(456,861
|
)
|
•
|
by lending funds in the amount of $167,975 at September 30, 2019 and December 31, 2018 pursuant to a loan agreement entered into between those parties. Advances under the loan are secured by promissory notes. This loan was assigned by AII to AmTrust effective December 31, 2014 and is carried at cost. Interest is payable at a rate equivalent to the Federal Funds Effective Rate ("Fed Funds") plus 200 basis points per annum. Please see "Note 4. (c) Investments" for the total amount of interest earned from this loan. The interest income on the loan was approximately $1,777 and $5,441 for the three and nine months ended September 30, 2019, respectively, (2018 - $1,658 and $4,651, respectively) and the effective yield was 4.2% and 4.3% for the same respective periods (2018 - 3.9% and 3.7%, respectively). On January 30, 2019, in connection with the termination of the reinsurance agreements described above, the Company and AmTrust entered into an amendment to the Loan Agreement between Maiden Bermuda, AmTrust and AII, originally entered into on November 16, 2007. The Amendment provides for the extension of the maturity date to January 1, 2025 and acknowledges that due to the termination of the AmTrust Quota Share, no further loans or advances may be made pursuant to the Loan Agreement;
|
•
|
effective December 1, 2008, the Company entered into a Reinsurer Trust Assets Collateral agreement to provide to AII sufficient collateral to secure its proportional share of AII's obligations to the U.S. AmTrust subsidiaries. The amount of the collateral at September 30, 2019 was approximately $1,354,283 (December 31, 2018 - $3,650,418) and the accrued interest was $7,645 (December 31, 2018 - $23,283). Please refer to "Note 4. (e) Investments" for additional information;
|
•
|
on January 11, 2019, a portion of the existing trust accounts used for collateral on the AmTrust Quota Share were converted to a funds withheld arrangement. The Company transferred cash and investments of $575,000 to AmTrust as a funds withheld receivable which bears an interest rate of 3.5%, subject to annual adjustment. At September 30, 2019, the balance of funds withheld was $575,000 and the accrued interest was $5,073. The interest income on the funds withheld receivable was approximately $5,073 and $14,500 for the three and nine months ended September 30, 2019, respectively.
|
a)
|
Concentrations of Credit Risk
|
b)
|
Operating Lease Commitments
|
|
September 30, 2019
|
||
Remainder of 2019
|
$
|
334
|
|
2020
|
1,169
|
|
|
2021
|
741
|
|
|
2022
|
741
|
|
|
Discount for present value
|
(375
|
)
|
|
Total discounted operating lease liabilities
|
$
|
2,610
|
|
|
December 31, 2018
|
||
2019
|
$
|
1,442
|
|
2020
|
1,228
|
|
|
2021
|
772
|
|
|
2022
|
750
|
|
|
|
$
|
4,192
|
|
c)
|
Legal Proceedings
|
For the Three Months Ended September 30,
|
|
2019
|
|
2018
|
||||
Numerator:
|
|
|
|
|
||||
Net loss from continuing operations
|
|
$
|
(58,050
|
)
|
|
$
|
(240,413
|
)
|
Net income from continuing operations attributable to noncontrolling interests
|
|
—
|
|
|
(62
|
)
|
||
Net loss attributable to Maiden from continuing operations
|
|
(58,050
|
)
|
|
(240,475
|
)
|
||
Dividends on preference shares – Series A, C and D
|
|
—
|
|
|
(8,545
|
)
|
||
Amount allocated to participating common shareholders(1)
|
|
—
|
|
|
(8
|
)
|
||
Loss attributable to Maiden common shareholders, before discontinued operations
|
|
(58,050
|
)
|
|
(249,028
|
)
|
||
Loss from discontinued operations, net of income tax expense
|
|
(277
|
)
|
|
(59,819
|
)
|
||
Net loss allocated to Maiden common shareholders
|
|
$
|
(58,327
|
)
|
|
$
|
(308,847
|
)
|
Denominator:
|
|
|
|
|
||||
Weighted average number of common shares – basic and diluted(2)
|
|
83,092,085
|
|
|
83,089,172
|
|
||
Basic and diluted loss from continuing operations per share attributable to Maiden common shareholders
|
|
$
|
(0.70
|
)
|
|
$
|
(3.00
|
)
|
Basic and diluted loss from discontinued operations per share attributable to Maiden common shareholders
|
|
—
|
|
|
(0.72
|
)
|
||
Basic and diluted loss per share attributable to Maiden common shareholders:
|
|
$
|
(0.70
|
)
|
|
$
|
(3.72
|
)
|
For the Nine Months Ended September 30,
|
|
2019
|
|
2018
|
||||
Numerator:
|
|
|
|
|
||||
Net loss from continuing operations
|
|
$
|
(88,049
|
)
|
|
$
|
(233,600
|
)
|
Net income from continuing operations attributable to noncontrolling interests
|
|
—
|
|
|
(180
|
)
|
||
Net loss attributable to Maiden from continuing operations
|
|
(88,049
|
)
|
|
(233,780
|
)
|
||
Dividends on preference shares – Series A, C and D
|
|
—
|
|
|
(25,636
|
)
|
||
Amount allocated to participating common shareholders(1)
|
|
—
|
|
|
(17
|
)
|
||
Loss attributable to Maiden common shareholders, before discontinued operations
|
|
(88,049
|
)
|
|
(259,433
|
)
|
||
Loss from discontinued operations, net of income tax expense
|
|
(22,327
|
)
|
|
(41,609
|
)
|
||
Net loss allocated to Maiden common shareholders
|
|
$
|
(110,376
|
)
|
|
$
|
(301,042
|
)
|
Denominator:
|
|
|
|
|
||||
Weighted average number of common shares – basic and diluted(2)
|
|
83,036,925
|
|
|
83,085,441
|
|
||
Basic and diluted loss from continuing operations per share attributable to Maiden common shareholders
|
|
$
|
(1.06
|
)
|
|
$
|
(3.12
|
)
|
Basic and diluted loss from discontinued operations per share attributable to Maiden common shareholders
|
|
(0.27
|
)
|
|
(0.50
|
)
|
||
Basic and diluted loss per share attributable to Maiden common shareholders:
|
|
$
|
(1.33
|
)
|
|
$
|
(3.62
|
)
|
(1)
|
This represents earnings (dividends paid) allocated to the holders of non-vested restricted shares issued to the Company's employees under the Amended and Restated 2007 Share Incentive Plan.
|
(2)
|
Please refer to "Note 14. Shareholders' Equity" and "Note 15. Share Compensation and Pension Plans" of the Notes to Consolidated Financial Statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2018, for the terms and conditions of securities that could potentially be dilutive in the future.
|
a)
|
Common Shares
|
b)
|
Treasury Shares
|
c)
|
Accumulated Other Comprehensive Income (Loss)
|
For the Three Months Ended September 30, 2019
|
|
Change in net unrealized gains on investment
|
|
Foreign currency translation
|
|
Total
|
||||||
Beginning balance
|
|
$
|
29,278
|
|
|
$
|
(8,126
|
)
|
|
$
|
21,152
|
|
Other comprehensive (loss) income before reclassifications
|
|
(2,141
|
)
|
|
11,480
|
|
|
9,339
|
|
|||
Amounts reclassified from AOCI to net loss, net of tax
|
|
(8,555
|
)
|
|
—
|
|
|
(8,555
|
)
|
|||
Net current period other comprehensive (loss) income
|
|
(10,696
|
)
|
|
11,480
|
|
|
784
|
|
|||
Ending balance, Maiden shareholders
|
|
$
|
18,582
|
|
|
$
|
3,354
|
|
|
$
|
21,936
|
|
|
|
|
|
|
|
|
||||||
For the Three Months Ended September 30, 2018
|
|
Change in net unrealized gains on investment
|
|
Foreign currency translation
|
|
Total
|
||||||
Beginning balance
|
|
$
|
(96,107
|
)
|
|
$
|
(918
|
)
|
|
$
|
(97,025
|
)
|
Other comprehensive (loss) income before reclassifications
|
|
(24,656
|
)
|
|
4,458
|
|
|
(20,198
|
)
|
|||
Amounts reclassified from AOCI to net income, net of tax
|
|
785
|
|
|
—
|
|
|
785
|
|
|||
Net current period other comprehensive (loss) income
|
|
(23,871
|
)
|
|
4,458
|
|
|
(19,413
|
)
|
|||
Ending balance
|
|
(119,978
|
)
|
|
3,540
|
|
|
(116,438
|
)
|
|||
Less: AOCI attributable to noncontrolling interest
|
|
—
|
|
|
(69
|
)
|
|
(69
|
)
|
|||
Ending balance, Maiden shareholders
|
|
$
|
(119,978
|
)
|
|
$
|
3,609
|
|
|
$
|
(116,369
|
)
|
For the Nine Months Ended September 30, 2019
|
|
Change in net unrealized gains on investment
|
|
Foreign currency translation
|
|
Total
|
||||||
Beginning balance
|
|
$
|
(59,762
|
)
|
|
$
|
(5,932
|
)
|
|
$
|
(65,694
|
)
|
Other comprehensive income before reclassifications
|
|
89,826
|
|
|
9,286
|
|
|
99,112
|
|
|||
Amounts reclassified from AOCI to net income, net of tax
|
|
(11,482
|
)
|
|
—
|
|
|
(11,482
|
)
|
|||
Net current period other comprehensive income
|
|
78,344
|
|
|
9,286
|
|
|
87,630
|
|
|||
Ending balance, Maiden shareholders
|
|
$
|
18,582
|
|
|
$
|
3,354
|
|
|
$
|
21,936
|
|
|
|
|
|
|
|
|
||||||
For the Nine Months Ended September 30, 2018
|
|
Change in net unrealized gains on investment
|
|
Foreign currency translation
|
|
Total
|
||||||
Beginning balance
|
|
$
|
21,889
|
|
|
$
|
(8,583
|
)
|
|
$
|
13,306
|
|
Other comprehensive (loss) income before reclassifications
|
|
(141,907
|
)
|
|
12,123
|
|
|
(129,784
|
)
|
|||
Amounts reclassified from AOCI to net income, net of tax
|
|
40
|
|
|
—
|
|
|
40
|
|
|||
Net current period other comprehensive (loss) income
|
|
(141,867
|
)
|
|
12,123
|
|
|
(129,744
|
)
|
|||
Ending balance
|
|
(119,978
|
)
|
|
3,540
|
|
|
(116,438
|
)
|
|||
Less: AOCI attributable to noncontrolling interest
|
|
—
|
|
|
(69
|
)
|
|
(69
|
)
|
|||
Ending balance, Maiden shareholders
|
|
$
|
(119,978
|
)
|
|
$
|
3,609
|
|
|
$
|
(116,369
|
)
|
For the Three Months Ended September 30,
|
|
2019
|
|
2018
|
|
Change
|
||||||
Summary Consolidated Statement of Income Data:
|
|
($ in thousands except per share data)
|
||||||||||
Net loss from continuing operations
|
|
$
|
(58,050
|
)
|
|
$
|
(240,413
|
)
|
|
$
|
182,363
|
|
Loss from discontinued operations, net of income tax
|
|
(277
|
)
|
|
(59,819
|
)
|
|
59,542
|
|
|||
Net loss
|
|
(58,327
|
)
|
|
(300,232
|
)
|
|
241,905
|
|
|||
Net loss attributable to Maiden common shareholders
|
|
(58,327
|
)
|
|
(308,839
|
)
|
|
250,512
|
|
|||
Basic and diluted (loss) earnings per common share(9):
|
|
|
|
|
|
|
||||||
Net loss attributable to Maiden common shareholders(2)(9)
|
|
(0.70
|
)
|
|
(3.72
|
)
|
|
3.02
|
|
|||
Dividends per common share
|
|
—
|
|
|
0.05
|
|
|
(0.05
|
)
|
|||
Gross premiums written
|
|
35,844
|
|
|
484,493
|
|
|
(448,649
|
)
|
|||
Net premiums earned
|
|
94,898
|
|
|
520,077
|
|
|
(425,179
|
)
|
|||
Underwriting loss(1)(3)
|
|
(80,255
|
)
|
|
(251,175
|
)
|
|
170,920
|
|
|||
Net investment income
|
|
13,223
|
|
|
34,419
|
|
|
(21,196
|
)
|
|||
Combined ratio(4)
|
|
190.8
|
%
|
|
150.8
|
%
|
|
40.0
|
|
|||
Non-GAAP measures:
|
|
|
|
|
|
|
||||||
Non-GAAP operating earnings (loss)(1)
|
|
$
|
39,834
|
|
|
$
|
(240,895
|
)
|
|
$
|
280,729
|
|
Basic and diluted (loss) earnings per common share(9):
|
|
|
|
|
|
|
||||||
Non-GAAP operating earnings (loss) attributable to Maiden common shareholders(1)(9)
|
|
0.48
|
|
|
(2.90
|
)
|
|
3.38
|
|
|||
Non-GAAP Combined Ratio(11)
|
|
81.3
|
%
|
|
150.8
|
%
|
|
(69.5
|
)
|
|||
Annualized non-GAAP operating return on average common shareholders' equity(1)
|
|
163.2
|
%
|
|
(201.6
|
)%
|
|
364.8
|
|
|||
|
|
|
|
|
|
|
||||||
For the Nine Months Ended September 30,
|
|
2019
|
|
2018
|
|
Change
|
||||||
Summary Consolidated Statement of Income Data:
|
|
($ in thousands except per share data)
|
||||||||||
Net loss from continuing operations
|
|
$
|
(88,049
|
)
|
|
$
|
(233,600
|
)
|
|
$
|
145,551
|
|
Loss from discontinued operations, net of income tax
|
|
(22,327
|
)
|
|
(41,609
|
)
|
|
19,282
|
|
|||
Net loss
|
|
(110,376
|
)
|
|
(275,209
|
)
|
|
164,833
|
|
|||
Net loss attributable to Maiden common shareholders
|
|
(110,376
|
)
|
|
(301,025
|
)
|
|
190,649
|
|
|||
Basic and diluted loss per common share(9):
|
|
|
|
|
|
|
||||||
Net loss attributable to Maiden common shareholders(2)(9)
|
|
(1.33
|
)
|
|
(3.62
|
)
|
|
2.29
|
|
|||
Dividends per common share
|
|
—
|
|
|
0.35
|
|
|
(0.35
|
)
|
|||
Gross premiums written
|
|
(523,178
|
)
|
|
1,629,347
|
|
|
(2,152,525
|
)
|
|||
Net premiums earned
|
|
411,986
|
|
|
1,541,278
|
|
|
(1,129,292
|
)
|
|||
Underwriting loss(3)
|
|
(162,137
|
)
|
|
(287,906
|
)
|
|
125,769
|
|
|||
Net investment income
|
|
76,367
|
|
|
101,548
|
|
|
(25,181
|
)
|
|||
Combined ratio(4)
|
|
146.0
|
%
|
|
120.7
|
%
|
|
25.3
|
|
|||
Non-GAAP measures:
|
|
|
|
|
|
|
||||||
Non-GAAP operating loss(1)
|
|
$
|
(9,132
|
)
|
|
$
|
(253,648
|
)
|
|
$
|
244,516
|
|
Basic and diluted loss per common share(9):
|
|
|
|
|
|
|
||||||
Non-GAAP operating loss attributable to Maiden common shareholders(1)
|
|
(0.11
|
)
|
|
(3.05
|
)
|
|
2.94
|
|
|||
Non-GAAP Combined Ratio(11)
|
|
120.8
|
%
|
|
120.7
|
%
|
|
0.1
|
|
|||
Annualized non-GAAP operating return on average common shareholders' equity(1)
|
|
(15.5
|
)%
|
|
(63.1
|
)%
|
|
47.6
|
|
|
|
September 30, 2019
|
|
December 31, 2018
|
|
Change
|
||||||
Consolidated Financial Condition
|
|
($ in thousands except per share data)
|
||||||||||
Total investments and cash and cash equivalents(5)
|
|
$
|
2,162,898
|
|
|
$
|
4,421,954
|
|
|
$
|
(2,259,056
|
)
|
Total assets
|
|
3,791,955
|
|
|
5,287,460
|
|
|
(1,495,505
|
)
|
|||
Reserve for loss and loss adjustment expenses ("loss and LAE")
|
|
2,625,858
|
|
|
3,126,134
|
|
|
(500,276
|
)
|
|||
Senior notes - principal amount
|
|
262,500
|
|
|
262,500
|
|
|
—
|
|
|||
Maiden common shareholders' equity
|
|
68,155
|
|
|
89,275
|
|
|
(21,120
|
)
|
|||
Maiden shareholders' equity
|
|
533,155
|
|
|
554,275
|
|
|
(21,120
|
)
|
|||
Total capital resources(6)
|
|
795,655
|
|
|
816,775
|
|
|
(21,120
|
)
|
|||
Ratio of debt to total capital resources(13)
|
|
33.0
|
%
|
|
32.1
|
%
|
|
0.9
|
|
|||
|
|
|
|
|
|
|
||||||
Book Value calculations:
|
|
|
|
|
|
|
||||||
Book value per common share(7)
|
|
$
|
0.82
|
|
|
$
|
1.08
|
|
|
$
|
(0.26
|
)
|
Accumulated dividends per common share
|
|
4.27
|
|
|
4.27
|
|
|
—
|
|
|||
Book value per common share plus accumulated dividends
|
|
$
|
5.09
|
|
|
$
|
5.35
|
|
|
$
|
(0.26
|
)
|
Change in book value per common share plus accumulated dividends
|
|
(4.9
|
)%
|
|
|
|
|
|||||
|
|
|
|
|
|
|
||||||
Diluted book value per common share(8)
|
|
$
|
0.81
|
|
|
$
|
1.08
|
|
|
$
|
(0.27
|
)
|
|
|
|
|
|
|
|
||||||
Non-GAAP measures:
|
|
|
|
|
|
|
||||||
Adjusted book value per common share(10)
|
|
$
|
2.08
|
|
|
$
|
1.08
|
|
|
$
|
1.00
|
|
Adjusted Maiden shareholders' equity(12)
|
|
$
|
637,697
|
|
|
$
|
554,275
|
|
|
$
|
83,422
|
|
Adjusted total capital resources(12)
|
|
$
|
900,197
|
|
|
$
|
816,775
|
|
|
$
|
83,422
|
|
Ratio of debt to adjusted total capital resources(14)
|
|
29.2
|
%
|
|
32.1
|
%
|
|
(2.9
|
)
|
(1)
|
Non-GAAP operating earnings (loss), non-GAAP operating earnings (loss) per common share, and annualized non-GAAP operating return on average common equity and underwriting loss are non-GAAP financial measures. See "Key Financial Measures" for additional information.
|
(2)
|
Please refer to "Notes to Condensed Consolidated Financial Statements (unaudited) Note 12. Earnings per Common Share" for the calculation of basic and diluted loss per common share.
|
(3)
|
Underwriting loss is a non-GAAP measure and is calculated as net premiums earned plus other insurance revenue less net loss and LAE, commission and other acquisition expenses and general and administrative expenses directly related to underwriting activities. See "Key Financial Measures" for additional information.
|
(4)
|
Combined ratio is calculated by adding together the net loss and LAE ratio and the expense ratio.
|
(5)
|
Total investments and cash and cash equivalents includes both restricted and unrestricted.
|
(6)
|
Total capital resources is the sum of the Company's principal amount of debt and Maiden shareholders' equity. See "Key Financial Measures" for additional information.
|
(7)
|
Book value per common share is calculated using Maiden common shareholders’ equity (shareholders' equity excluding the aggregate liquidation value of our preference shares) divided by the number of common shares outstanding.See "Key Financial Measures" for additional information.
|
(8)
|
Diluted book value per common share is calculated by dividing Maiden common shareholders' equity, adjusted for assumed proceeds from the exercise of dilutive options, by the number of outstanding common shares plus dilutive options and restricted share units (assuming exercise of all dilutive share based awards). See "Key Financial Measures" for additional information.
|
(9)
|
During a period of loss, the basic weighted average common shares outstanding is used in the denominator of the diluted loss per common share computation as the effect of including potential dilutive shares would be anti-dilutive.
|
(10)
|
Adjusted book value per common share is a non-GAAP measure that is calculated using Maiden common shareholders' equity, adjusted for unamortized deferred gain on retroactive reinsurance, divided by the number of common shares outstanding. See "Key Financial Measures" for additional information.
|
(11)
|
Non-GAAP combined ratio is calculated by excluding the impact of the unamortized deferred gain liability on retroactive reinsurance from the net loss and LAE ratio, and then adding together the expense ratio and the net adjusted loss and LAE ratio. See "Key Financial Measures" for additional information.
|
(12)
|
Adjusted Maiden shareholders' equity and adjusted total capital resources are calculated by adding the unamortized deferred gain on retroactive reinsurance to the GAAP Maiden shareholders' equity and GAAP total capital resources, respectively. The deferred gain arise from the LPT/ADC Agreement with Cavello relating to losses from the AmTrust Quota Share agreement. Under U.S. GAAP, the deferred gain shall be amortized over the estimated remaining settlement period. See "Key Financial Measures" for additional information.
|
(13)
|
Ratio of debt to total capital resources is calculated using the total principal amount of debt divided by the sum of total capital resources.
|
(14)
|
Ratio of debt to adjusted total capital resources is calculated using the total principal amount of debt divided by the sum of adjusted total capital resources.
|
|
|
For the Three Months Ended September 30,
|
|
For the Nine Months Ended September 30,
|
||||||||||||
($ in thousands)
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Gross premiums written
|
|
$
|
35,844
|
|
|
$
|
484,493
|
|
|
$
|
(523,178
|
)
|
|
$
|
1,629,347
|
|
Net premiums written
|
|
$
|
35,944
|
|
|
$
|
482,806
|
|
|
$
|
(525,995
|
)
|
|
$
|
1,626,485
|
|
Net premiums earned
|
|
$
|
94,898
|
|
|
$
|
520,077
|
|
|
$
|
411,986
|
|
|
$
|
1,541,278
|
|
Other insurance revenue
|
|
554
|
|
|
1,870
|
|
|
2,058
|
|
|
7,629
|
|
||||
Net loss and LAE
|
|
(140,860
|
)
|
|
(600,296
|
)
|
|
(415,110
|
)
|
|
(1,323,503
|
)
|
||||
Commission and other acquisition expenses
|
|
(32,763
|
)
|
|
(167,618
|
)
|
|
(152,036
|
)
|
|
(497,026
|
)
|
||||
General and administrative expenses(1)
|
|
(2,084
|
)
|
|
(5,208
|
)
|
|
(9,035
|
)
|
|
(16,284
|
)
|
||||
Underwriting loss(2)
|
|
(80,255
|
)
|
|
(251,175
|
)
|
|
(162,137
|
)
|
|
(287,906
|
)
|
||||
Other general and administrative expenses(1)
|
|
(6,462
|
)
|
|
(13,999
|
)
|
|
(28,299
|
)
|
|
(33,454
|
)
|
||||
Net investment income
|
|
13,223
|
|
|
34,419
|
|
|
76,367
|
|
|
101,548
|
|
||||
Net realized gains (losses) on investment
|
|
12,700
|
|
|
(225
|
)
|
|
25,685
|
|
|
(282
|
)
|
||||
Total other-than-temporary impairment losses
|
|
(165
|
)
|
|
(479
|
)
|
|
(165
|
)
|
|
(479
|
)
|
||||
Foreign exchange and other gains (losses)
|
|
7,827
|
|
|
(552
|
)
|
|
14,013
|
|
|
1,862
|
|
||||
Interest and amortization expenses
|
|
(4,831
|
)
|
|
(4,829
|
)
|
|
(14,490
|
)
|
|
(14,487
|
)
|
||||
Income tax (expense) benefit
|
|
(87
|
)
|
|
(3,573
|
)
|
|
977
|
|
|
(402
|
)
|
||||
Net loss from continuing operations
|
|
(58,050
|
)
|
|
(240,413
|
)
|
|
(88,049
|
)
|
|
(233,600
|
)
|
||||
Loss from discontinued operations, net of income tax
|
|
(277
|
)
|
|
(59,819
|
)
|
|
(22,327
|
)
|
|
(41,609
|
)
|
||||
Income attributable to noncontrolling interests
|
|
—
|
|
|
(62
|
)
|
|
—
|
|
|
(180
|
)
|
||||
Dividends on preference shares
|
|
—
|
|
|
(8,545
|
)
|
|
—
|
|
|
(25,636
|
)
|
||||
Net loss attributable to Maiden common shareholders
|
|
$
|
(58,327
|
)
|
|
$
|
(308,839
|
)
|
|
$
|
(110,376
|
)
|
|
$
|
(301,025
|
)
|
|
|
|
|
|
|
|
|
|
||||||||
Ratios
|
|
|
|
|
|
|
|
|
||||||||
Net loss and LAE ratio(3)
|
|
147.6
|
%
|
|
115.0
|
%
|
|
100.3
|
%
|
|
85.4
|
%
|
||||
Commission and other acquisition expense ratio(4)
|
|
34.3
|
%
|
|
32.1
|
%
|
|
36.7
|
%
|
|
32.1
|
%
|
||||
General and administrative expense ratio(5)
|
|
8.9
|
%
|
|
3.7
|
%
|
|
9.0
|
%
|
|
3.2
|
%
|
||||
Expense ratio(6)
|
|
43.2
|
%
|
|
35.8
|
%
|
|
45.7
|
%
|
|
35.3
|
%
|
||||
Combined ratio(7)
|
|
190.8
|
%
|
|
150.8
|
%
|
|
146.0
|
%
|
|
120.7
|
%
|
(1)
|
Underwriting related general and administrative expenses is a non-GAAP measure. Please refer to "General and Administrative Expenses" below for additional information related to these corporate expenses and the reconciliation to those presented in our Condensed Consolidated Statements of Income.
|
(2)
|
Underwriting loss is a non-GAAP measure and is calculated as net premiums earned plus other insurance revenue less net loss and LAE, commission and other acquisition expenses and general and administrative expenses directly related to underwriting activities.
|
(3)
|
Calculated by dividing net loss and LAE by the sum of net premiums earned and other insurance revenue.
|
(4)
|
Calculated by dividing commission and other acquisition expenses by the sum of net premiums earned and other insurance revenue.
|
(5)
|
Calculated by dividing general and administrative expenses by the sum of net premiums earned and other insurance revenue.
|
(6)
|
Calculated by adding together commission and other acquisition expense ratio and general and administrative expense ratio.
|
(7)
|
Calculated by adding together net loss and LAE ratio and the expense ratio.
|
•
|
net loss from continuing operations of $58.1 million compared to net loss from continuing operations of $240.4 million for the same period in 2018 largely due to the following factors:
|
•
|
underwriting loss of $80.3 million compared to $251.2 million in the same period in 2018, which resulted in a combined ratio of 190.8% compared to 150.8% in the prior period. The reduction in the underwriting loss and the corresponding increase in the combined ratio was due to the impact of:
|
▪
|
lower adverse prior year loss development of $63.2 million or 66.2 percentage points in the third quarter of 2019 compared to adverse prior year loss development of $212.5 million or 40.7 percentage points during the same period in 2018 incurred primarily within AmTrust Reinsurance Segment; partially offset by:
|
▪
|
higher initial loss ratios on current year premiums earned during the period within the AmTrust Reinsurance segment (which excludes the Terminated Business under the Partial Termination Amendment); and
|
▪
|
higher ceding commission payable of $3.5 million for the remaining in-force business immediately prior to January 1, 2019, which increased by five percentage points (excluding Terminated Business) and related unearned premium as of January 1, 2019 under the Partial Termination Amendment with AmTrust.
|
•
|
realized gains on investment of $12.7 million for the three months ended September 30, 2019 compared to realized losses of $0.2 million for the same period in 2018;
|
•
|
foreign exchange and other gains of $7.8 million for the three months ended September 30, 2019 compared to foreign exchange losses of $0.6 million for the same period in 2018; and
|
•
|
no dividends paid to preference shareholders for the three months ended September 30, 2019 compared to $8.5 million for the same period in 2018. Our Board of Directors have not declared dividends on any of our preference shares since the fourth quarter of 2018.
|
•
|
net loss from discontinued operations of $0.3 million compared to net loss from discontinued operations of $59.8 million for the same period in 2018 as the prior year period included the impairment of goodwill and intangible assets of $74.2 million that was recognized due to the sale of Maiden US partly offset by the proceeds of the sale of the Renewal Rights of $7.5 million.
|
•
|
net loss from continuing operations of $88.0 million compared to net loss from continuing operations of $233.6 million for the same period in 2018 largely due to the following factors:
|
•
|
underwriting loss of $162.1 million compared to $287.9 million for the same period in 2018 which resulted in a combined ratio of 146.0% compared to 120.7% in the prior period. The reduction in the underwriting loss and the corresponding increase in the combined ratio was principally due to the impact of:
|
▪
|
lower adverse prior year loss development of $96.5 million or 23.3 percentage points for the nine months ended September 30, 2019 compared to $250.5 million or 16.2 percentage points during the same period in 2018 incurred primarily within the AmTrust Reinsurance Segment; partly offset by;
|
▪
|
higher initial loss ratios on current year premiums earned during the period within the AmTrust Reinsurance segment (which excludes the Terminated Business under the Partial Termination Amendment); and
|
▪
|
higher ceding commission payable of $17.6 million for the remaining in-force business immediately prior to January 1, 2019, which increased by five percentage points (excluding Terminated Business) and related unearned premium as of January 1, 2019 under the Partial Termination Amendment with AmTrust.
|
•
|
realized gains on investment of $25.7 million for the nine months ended September 30, 2019 compared to realized losses of $0.3 million for the same period in 2018;
|
•
|
foreign exchange and other gains of $14.0 million for the nine months ended September 30, 2019 compared to foreign exchange gains of $1.9 million for the same period in 2018 largely due to the proceeds from the sale of AVS Automotive VersicherungsService GmbH ("AVS") and its subsidiaries to Allianz Partners on January 10, 2019. Excluding the gain of $4.3 million from the sale of AVS, net foreign exchange gains of $9.7 million were realized during the nine months ended September 30, 2019 primarily due to the impact of the strengthening of the U.S. dollar versus the euro and British pound; and
|
•
|
no dividends were paid to preference shareholders for the nine months ended September 30, 2019 compared to $25.6 million for the same period in 2018. Our Board of Directors have not declared dividends on any of our preference shares since the fourth quarter of 2018.
|
•
|
net loss from discontinued operations of $22.3 million compared to net loss from discontinued operations of $41.6 million for the same period in 2018 largely as a result of the Settlement and Commutation Agreement entered into by Maiden and
|
For the Three Months Ended September 30,
|
|
2019
|
|
2018
|
|
Change in
|
|||||||||
($ in thousands)
|
|
Total
|
|
Total
|
|
$
|
|
%
|
|||||||
Diversified Reinsurance
|
|
$
|
14,539
|
|
|
$
|
31,291
|
|
|
$
|
(16,752
|
)
|
|
(53.5
|
)%
|
AmTrust Reinsurance
|
|
21,405
|
|
|
451,515
|
|
|
(430,110
|
)
|
|
(95.3
|
)%
|
|||
Total
|
|
$
|
35,944
|
|
|
$
|
482,806
|
|
|
$
|
(446,862
|
)
|
|
(92.6
|
)%
|
|
|
|
|
|
|
|
|
|
|||||||
For the Nine Months Ended September 30,
|
|
2019
|
|
2018
|
|
Change in
|
|||||||||
($ in thousands)
|
|
Total
|
|
Total
|
|
$
|
|
%
|
|||||||
Diversified Reinsurance
|
|
$
|
38,204
|
|
|
$
|
109,279
|
|
|
$
|
(71,075
|
)
|
|
(65.0
|
)%
|
AmTrust Reinsurance
|
|
(564,199
|
)
|
|
1,517,206
|
|
|
(2,081,405
|
)
|
|
(137.2
|
)%
|
|||
Total
|
|
$
|
(525,995
|
)
|
|
$
|
1,626,485
|
|
|
$
|
(2,152,480
|
)
|
|
(132.3
|
)%
|
•
|
Premiums written in the AmTrust Reinsurance segment decreased significantly due to the recent termination of both the AmTrust Quota Share and the European Hospital Liability Quota Share effective January 1, 2019, therefore no new business has been written in this segment during 2019. Also, the Partial Termination Amendment resulted in Maiden Bermuda returning approximately $648.0 million in unearned premium to AII, or $436.8 million net of applicable ceding commission and brokerage; and
|
•
|
Premiums written in the Diversified Reinsurance segment decreased significantly by $16.8 million or 53.5% and $71.1 million or 65.0% for the three and nine months ended September 30, 2019, respectively, compared to the same respective periods in 2018 due to non-renewals in our European Capital Solutions business combined with lower premiums written in German Auto programs within our IIS business.
|
For the Three Months Ended September 30,
|
|
2019
|
|
2018
|
|
Change in
|
|||||||||||||||
($ in thousands)
|
|
Total
|
|
% of Total
|
|
Total
|
|
% of Total
|
|
$
|
|
%
|
|||||||||
Diversified Reinsurance
|
|
$
|
20,492
|
|
|
21.6
|
%
|
|
$
|
28,784
|
|
|
5.5
|
%
|
|
$
|
(8,292
|
)
|
|
(28.8
|
)%
|
AmTrust Quota Share Reinsurance
|
|
74,406
|
|
|
78.4
|
%
|
|
491,293
|
|
|
94.5
|
%
|
|
(416,887
|
)
|
|
(84.9
|
)%
|
|||
Total
|
|
$
|
94,898
|
|
|
100.0
|
%
|
|
$
|
520,077
|
|
|
100.0
|
%
|
|
$
|
(425,179
|
)
|
|
(81.8
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
For the Nine Months Ended September 30,
|
|
2019
|
|
2018
|
|
Change in
|
|||||||||||||||
($ in thousands)
|
|
Total
|
|
% of Total
|
|
Total
|
|
% of Total
|
|
$
|
|
%
|
|||||||||
Diversified Reinsurance
|
|
$
|
68,256
|
|
|
16.6
|
%
|
|
$
|
82,838
|
|
|
5.4
|
%
|
|
$
|
(14,582
|
)
|
|
(17.6
|
)%
|
AmTrust Quota Share Reinsurance
|
|
343,730
|
|
|
83.4
|
%
|
|
1,458,440
|
|
|
94.6
|
%
|
|
(1,114,710
|
)
|
|
(76.4
|
)%
|
|||
Total
|
|
$
|
411,986
|
|
|
100.0
|
%
|
|
$
|
1,541,278
|
|
|
100.0
|
%
|
|
$
|
(1,129,292
|
)
|
|
(73.3
|
)%
|
|
|
For the Three Months Ended September 30,
|
|
For the Nine Months Ended September 30,
|
||||||||||||
($ in thousands)
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Average investable assets(1)
|
|
$
|
3,661,544
|
|
|
$
|
4,226,404
|
|
|
$
|
3,892,366
|
|
|
$
|
4,172,955
|
|
Average book yield(2)
|
|
1.4
|
%
|
|
3.3
|
%
|
|
2.6
|
%
|
|
3.2
|
%
|
||||
Adjusted average book yield(3)
|
|
2.9
|
%
|
|
3.3
|
%
|
|
3.1
|
%
|
|
3.2
|
%
|
(1)
|
The average of the Company's investments, cash and cash equivalents, restricted cash and cash equivalents, funds withheld and loan to related party at each quarter-end during the period, as adjusted.
|
(2)
|
Ratio of net investment income over average investable assets at fair value, as adjusted.
|
(3)
|
Ratio of net investment income, excluding the interest payments to AmTrust and Enstar, over average investable assets at fair value, as adjusted.
|
|
|
For the Three Months Ended September 30,
|
|
For the Nine Months Ended September 30,
|
||||||||||||
($ in thousands)
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
General and administrative expenses – segments
|
|
$
|
2,084
|
|
|
$
|
5,208
|
|
|
$
|
9,035
|
|
|
$
|
16,284
|
|
General and administrative expenses – corporate
|
|
6,462
|
|
|
13,999
|
|
|
28,299
|
|
|
33,454
|
|
||||
Total general and administrative expenses
|
|
$
|
8,546
|
|
|
$
|
19,207
|
|
|
$
|
37,334
|
|
|
$
|
49,738
|
|
|
|
For the Three Months Ended September 30,
|
|
For the Nine Months Ended September 30,
|
||||||||||||
($ in thousands)
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Gross premiums written
|
|
$
|
14,439
|
|
|
$
|
31,698
|
|
|
$
|
41,021
|
|
|
$
|
111,139
|
|
Net premiums written
|
|
$
|
14,539
|
|
|
$
|
31,291
|
|
|
$
|
38,204
|
|
|
$
|
109,279
|
|
Net premiums earned
|
|
$
|
20,492
|
|
|
$
|
28,784
|
|
|
$
|
68,256
|
|
|
$
|
82,838
|
|
Other insurance revenue
|
|
554
|
|
|
1,870
|
|
|
2,058
|
|
|
7,629
|
|
||||
Net loss and LAE
|
|
(13,807
|
)
|
|
(19,764
|
)
|
|
(40,695
|
)
|
|
(51,828
|
)
|
||||
Commission and other acquisition expenses
|
|
(7,005
|
)
|
|
(8,961
|
)
|
|
(24,413
|
)
|
|
(28,261
|
)
|
||||
General and administrative expenses
|
|
(1,849
|
)
|
|
(4,256
|
)
|
|
(6,972
|
)
|
|
(13,330
|
)
|
||||
Underwriting loss
|
|
$
|
(1,615
|
)
|
|
$
|
(2,327
|
)
|
|
$
|
(1,766
|
)
|
|
$
|
(2,952
|
)
|
Ratios
|
|
|
|
|
|
|
|
|
||||||||
Net loss and LAE ratio
|
|
65.6
|
%
|
|
64.5
|
%
|
|
57.9
|
%
|
|
57.3
|
%
|
||||
Commission and other acquisition expense ratio
|
|
33.3
|
%
|
|
29.2
|
%
|
|
34.7
|
%
|
|
31.3
|
%
|
||||
General and administrative expense ratio
|
|
8.8
|
%
|
|
13.9
|
%
|
|
9.9
|
%
|
|
14.7
|
%
|
||||
Expense ratio
|
|
42.1
|
%
|
|
43.1
|
%
|
|
44.6
|
%
|
|
46.0
|
%
|
||||
Combined ratio
|
|
107.7
|
%
|
|
107.6
|
%
|
|
102.5
|
%
|
|
103.3
|
%
|
For the Three Months Ended September 30,
|
|
2019
|
|
2018
|
|
Change in
|
|||||||||
($ in thousands)
|
|
Total
|
|
Total
|
|
$
|
|
%
|
|||||||
Net Premiums Written
|
|
|
|
|
|
|
|
|
|||||||
International
|
|
$
|
14,563
|
|
|
$
|
31,291
|
|
|
$
|
(16,728
|
)
|
|
(53.5
|
)%
|
Other
|
|
(24
|
)
|
|
—
|
|
|
(24
|
)
|
|
NM
|
|
|||
Total Diversified Reinsurance
|
|
$
|
14,539
|
|
|
$
|
31,291
|
|
|
$
|
(16,752
|
)
|
|
(53.5
|
)%
|
|
|
|
|
|
|
|
|
|
|||||||
For the Nine Months Ended September 30,
|
|
2019
|
|
2018
|
|
Change in
|
|||||||||
($ in thousands)
|
|
Total
|
|
Total
|
|
$
|
|
%
|
|||||||
Net Premiums Written
|
|
|
|
|
|
|
|
|
|||||||
International
|
|
$
|
38,246
|
|
|
$
|
109,238
|
|
|
$
|
(70,992
|
)
|
|
(65.0
|
)%
|
Other
|
|
(42
|
)
|
|
41
|
|
|
(83
|
)
|
|
(202.4
|
)%
|
|||
Total Diversified Reinsurance
|
|
$
|
38,204
|
|
|
$
|
109,279
|
|
|
$
|
(71,075
|
)
|
|
(65.0
|
)%
|
For the Three Months Ended September 30,
|
|
2019
|
|
2018
|
|
Change in
|
|||||||||
($ in thousands)
|
|
Total
|
|
Total
|
|
$
|
|
%
|
|||||||
Net Premiums Earned
|
|
|
|
|
|
|
|
|
|||||||
International
|
|
$
|
20,516
|
|
|
$
|
28,784
|
|
|
$
|
(8,268
|
)
|
|
(28.7
|
)%
|
Other
|
|
(24
|
)
|
|
—
|
|
|
(24
|
)
|
|
NM
|
|
|||
Total Diversified Reinsurance
|
|
$
|
20,492
|
|
|
$
|
28,784
|
|
|
$
|
(8,292
|
)
|
|
(28.8
|
)%
|
|
|
|
|
|
|
|
|
|
|||||||
For the Nine Months Ended September 30,
|
|
2019
|
|
2018
|
|
Change in
|
|||||||||
($ in thousands)
|
|
Total
|
|
Total
|
|
$
|
|
%
|
|||||||
Net Premiums Earned
|
|
|
|
|
|
|
|
|
|||||||
International
|
|
$
|
68,298
|
|
|
$
|
82,797
|
|
|
$
|
(14,499
|
)
|
|
(17.5
|
)%
|
Other
|
|
(42
|
)
|
|
41
|
|
|
(83
|
)
|
|
(202.4
|
)%
|
|||
Total Diversified Reinsurance
|
|
$
|
68,256
|
|
|
$
|
82,838
|
|
|
$
|
(14,582
|
)
|
|
(17.6
|
)%
|
|
|
For the Three Months Ended September 30,
|
|
For the Nine Months Ended September 30,
|
||||||||||||
($ in thousands)
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Gross premiums written
|
|
$
|
21,405
|
|
|
$
|
452,795
|
|
|
$
|
(564,199
|
)
|
|
$
|
1,518,208
|
|
Net premiums written
|
|
$
|
21,405
|
|
|
$
|
451,515
|
|
|
$
|
(564,199
|
)
|
|
$
|
1,517,206
|
|
Net premiums earned
|
|
$
|
74,406
|
|
|
$
|
491,293
|
|
|
$
|
343,730
|
|
|
$
|
1,458,440
|
|
Net loss and LAE
|
|
(126,945
|
)
|
|
(579,163
|
)
|
|
(374,103
|
)
|
|
(1,270,306
|
)
|
||||
Commission and other acquisition expenses
|
|
(25,758
|
)
|
|
(158,657
|
)
|
|
(127,623
|
)
|
|
(468,765
|
)
|
||||
General and administrative expenses
|
|
(235
|
)
|
|
(952
|
)
|
|
(2,063
|
)
|
|
(2,954
|
)
|
||||
Underwriting loss
|
|
$
|
(78,532
|
)
|
|
$
|
(247,479
|
)
|
|
$
|
(160,059
|
)
|
|
$
|
(283,585
|
)
|
Ratios
|
|
|
|
|
|
|
|
|
||||||||
Net loss and LAE ratio
|
|
170.6
|
%
|
|
117.9
|
%
|
|
108.8
|
%
|
|
87.1
|
%
|
||||
Commission and other acquisition expense ratio
|
|
34.6
|
%
|
|
32.3
|
%
|
|
37.1
|
%
|
|
32.1
|
%
|
||||
General and administrative expense ratio
|
|
0.3
|
%
|
|
0.2
|
%
|
|
0.6
|
%
|
|
0.2
|
%
|
||||
Expense ratio
|
|
34.9
|
%
|
|
32.5
|
%
|
|
37.7
|
%
|
|
32.3
|
%
|
||||
Combined ratio
|
|
205.5
|
%
|
|
150.4
|
%
|
|
146.5
|
%
|
|
119.4
|
%
|
•
|
higher loss ratios for current year premiums earned during the period primarily due to the Partial Termination Amendment which caused significant changes in the mix of business being earned in 2019 compared to 2018. These changes resulted in a higher current year loss ratio for the remaining in-force business;
|
•
|
increase in the ceding commission payable which increased by five percentage points for the remaining in-force business immediately prior to January 1, 2019 (excluding Terminated Business) and related unearned premium as of January 1, 2019 under the Partial Termination Amendment (impact of $3.5 million); and
|
•
|
impact of adverse prior year loss development which was $62.4 million or 83.8 percentage points during the third quarter of 2019 compared to $210.4 million or 42.8 percentage points for the same period in 2018. Prior year adverse development in 2019 was primarily due to adverse development in Commercial Auto and General Liability in accident years 2015 to 2018, partly offset by favorable development in Workers Compensation in accident years 2016-2018. The prior year adverse development in 2018 was due to Worker's Compensation which represented nearly half of the adverse development and primarily driven by accident years 2014 to 2017, and to a lesser extent, development in European Hospital Liability, Commercial Auto and General Liability.
|
•
|
higher loss ratios for current year premiums earned during the period primarily due to the Partial Termination Amendment which caused changes in the mix of business being earned in 2019 compared to 2018. These changes resulted in a higher current year loss ratio for the remaining in-force business;
|
•
|
increase in the ceding commission payable which increased by five percentage points for the remaining in-force business immediately prior to January 1, 2019 (excluding Terminated Business) and related unearned premium as of January 1, 2019 under the Partial Termination Amendment (impact of $17.6 million); and
|
•
|
impact of adverse prior year loss development which was $97.6 million or 28.4 percentage points during the nine months ended September 30, 2019 compared to $247.3 million or 17.0 percentage points for the same period in 2018. Prior year adverse development in 2019 was primarily due to Commercial Auto and General Liability in accident years 2014 to 2018, partly offset by favorable development in Workers Compensation in accident years 2016-2018. The prior year adverse development in 2018 was largely due to Workers Compensation and European Hospital Liability, with a smaller contribution from Commercial Auto and General Liability.
|
For the Three Months Ended September 30,
|
|
2019
|
|
2018
|
|
Change in
|
|||||||||
($ in thousands)
|
|
Total
|
|
Total
|
|
$
|
|
%
|
|||||||
Net Premiums Written
|
|
|
|
|
|
|
|
|
|||||||
Small Commercial Business
|
|
$
|
8,050
|
|
|
$
|
232,163
|
|
|
$
|
(224,113
|
)
|
|
(96.5
|
)%
|
Specialty Program
|
|
4,139
|
|
|
94,077
|
|
|
(89,938
|
)
|
|
(95.6
|
)%
|
|||
Specialty Risk and Extended Warranty
|
|
9,216
|
|
|
125,275
|
|
|
(116,059
|
)
|
|
(92.6
|
)%
|
|||
Total AmTrust Reinsurance
|
|
$
|
21,405
|
|
|
$
|
451,515
|
|
|
$
|
(430,110
|
)
|
|
(95.3
|
)%
|
|
|
|
|
|
|
|
|
|
|||||||
For the Nine Months Ended September 30,
|
|
2019
|
|
2018
|
|
Change in
|
|||||||||
($ in thousands)
|
|
Total
|
|
Total
|
|
$
|
|
%
|
|||||||
Net Premiums Written
|
|
|
|
|
|
|
|
|
|||||||
Small Commercial Business
|
|
$
|
(329,116
|
)
|
|
$
|
879,403
|
|
|
$
|
(1,208,519
|
)
|
|
(137.4
|
)%
|
Specialty Program
|
|
(24,500
|
)
|
|
286,404
|
|
|
(310,904
|
)
|
|
(108.6
|
)%
|
|||
Specialty Risk and Extended Warranty
|
|
(210,583
|
)
|
|
351,399
|
|
|
(561,982
|
)
|
|
(159.9
|
)%
|
|||
Total AmTrust Reinsurance
|
|
$
|
(564,199
|
)
|
|
$
|
1,517,206
|
|
|
$
|
(2,081,405
|
)
|
|
(137.2
|
)%
|
For the Three Months Ended September 30,
|
|
2019
|
|
2018
|
|
Change in
|
|||||||||||||||
($ in thousands)
|
|
Total
|
|
% of Total
|
|
Total
|
|
% of Total
|
|
$
|
|
%
|
|||||||||
Net Premiums Earned
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Small Commercial Business
|
|
$
|
18,686
|
|
|
25.1
|
%
|
|
$
|
273,456
|
|
|
55.7
|
%
|
|
$
|
(254,770
|
)
|
|
(93.2
|
)%
|
Specialty Program
|
|
22,204
|
|
|
29.8
|
%
|
|
98,359
|
|
|
20.0
|
%
|
|
(76,155
|
)
|
|
(77.4
|
)%
|
|||
Specialty Risk and Extended Warranty
|
|
33,516
|
|
|
45.1
|
%
|
|
119,478
|
|
|
24.3
|
%
|
|
(85,962
|
)
|
|
(71.9
|
)%
|
|||
Total AmTrust Reinsurance
|
|
$
|
74,406
|
|
|
100.0
|
%
|
|
$
|
491,293
|
|
|
100.0
|
%
|
|
$
|
(416,887
|
)
|
|
(84.9
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
For the Nine Months Ended September 30,
|
|
2019
|
|
2018
|
|
Change in
|
|||||||||||||||
($ in thousands)
|
|
Total
|
|
% of Total
|
|
Total
|
|
% of Total
|
|
$
|
|
%
|
|||||||||
Net Premiums Earned
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Small Commercial Business
|
|
$
|
81,424
|
|
|
23.7
|
%
|
|
$
|
882,679
|
|
|
60.5
|
%
|
|
$
|
(801,255
|
)
|
|
(90.8
|
)%
|
Specialty Program
|
|
128,751
|
|
|
37.5
|
%
|
|
283,592
|
|
|
19.5
|
%
|
|
(154,841
|
)
|
|
(54.6
|
)%
|
|||
Specialty Risk and Extended Warranty
|
|
133,555
|
|
|
38.8
|
%
|
|
292,169
|
|
|
20.0
|
%
|
|
(158,614
|
)
|
|
(54.3
|
)%
|
|||
Total AmTrust Reinsurance
|
|
$
|
343,730
|
|
|
100.0
|
%
|
|
$
|
1,458,440
|
|
|
100.0
|
%
|
|
$
|
(1,114,710
|
)
|
|
(76.4
|
)%
|
•
|
the Partial Termination Amendment caused significant changes in the mix of business being earned in 2019 compared to 2018. These changes resulted in a higher current year loss ratio for the remaining in-force business; and
|
•
|
the impact of adverse prior year loss development which was $62.4 million or 83.8 percentage points during the three months ended September 30, 2019, compared to $210.4 million or 42.8 percentage points for the same period in 2018. Prior year adverse development in 2019 was due to adverse development in Commercial Auto and General Liability in accident years 2015 to 2018, partly offset by favorable development in Workers Compensation. The 2018 adverse development from Workers Compensation represented nearly half of the total adverse development and was primarily driven by accident years 2014 to 2017; to a lesser extent adverse development also occurred in European Hospital Liability, Commercial Auto and General Liability.
|
•
|
the Partial Termination Amendment caused significant changes in the mix of business being earned in 2019 compared to 2018. These changes resulted in a higher current year loss ratio for the remaining in-force business; and
|
•
|
the impact of adverse prior year loss development which was $97.6 million or 28.4 percentage points during the nine months ended September 30, 2019, compared to $247.3 million or 17.0 percentage points for the same period in 2018. Prior year adverse development in 2019 was due to Commercial Auto and General Liability in accident years 2014 to 2018, partly offset by favorable development in Workers Compensation in accident years 2016-2018. The 2018 adverse development was primarily from Workers Compensation and European Hospital Liability, with a smaller contribution from Commercial Auto and General Liability.
|
For the Nine Months Ended September 30,
|
|
2019
|
|
2018
|
||||
|
|
($ in thousands)
|
||||||
Operating activities
|
|
$
|
(949,283
|
)
|
|
$
|
162,623
|
|
Investing activities
|
|
686,394
|
|
|
27,151
|
|
||
Financing activities
|
|
(18
|
)
|
|
(63,893
|
)
|
||
Effect of exchange rate changes on foreign currency cash
|
|
(1,269
|
)
|
|
(1,131
|
)
|
||
Total (decrease) increase in cash, restricted cash and cash equivalents
|
|
(264,176
|
)
|
|
124,750
|
|
||
Less: change in cash, restricted cash and cash equivalents of discontinued operations
|
|
(6,113
|
)
|
|
9,551
|
|
||
Total change in cash, restricted cash and cash equivalents of continuing operations
|
|
$
|
(258,063
|
)
|
|
$
|
115,199
|
|
|
|
September 30, 2019
|
|
December 31, 2018
|
Fixed maturities and cash and cash equivalents
|
|
3.6
|
|
4.2
|
Reserve for loss and LAE(1)
|
|
4.1
|
|
4.5
|
September 30, 2019
|
|
Original or Amortized Cost
|
|
Gross Unrealized Gains
|
|
Gross Unrealized Losses
|
|
Fair Value
|
|
Average yield(1)
|
|
Average duration(2)
|
||||||||||
AFS fixed maturities
|
|
($ in thousands)
|
|
|
|
|
||||||||||||||||
U.S. treasury bonds
|
|
$
|
94,971
|
|
|
$
|
780
|
|
|
$
|
—
|
|
|
$
|
95,751
|
|
|
2.6
|
%
|
|
0.9
|
|
U.S. agency bonds – mortgage-backed
|
|
748,135
|
|
|
12,120
|
|
|
(1,265
|
)
|
|
758,990
|
|
|
2.9
|
%
|
|
4.9
|
|
||||
Non-U.S. government and supranational bonds
|
|
11,899
|
|
|
201
|
|
|
(340
|
)
|
|
11,760
|
|
|
1.2
|
%
|
|
4.8
|
|
||||
Asset-backed securities
|
|
172,919
|
|
|
828
|
|
|
(521
|
)
|
|
173,226
|
|
|
4.1
|
%
|
|
0.9
|
|
||||
Corporate bonds
|
|
1,008,823
|
|
|
28,963
|
|
|
(22,130
|
)
|
|
1,015,656
|
|
|
2.9
|
%
|
|
3.7
|
|
||||
Municipal bonds
|
|
4,105
|
|
|
72
|
|
|
—
|
|
|
4,177
|
|
|
4.6
|
%
|
|
1.6
|
|
||||
Total AFS fixed maturities
|
|
2,040,852
|
|
|
42,964
|
|
|
(24,256
|
)
|
|
2,059,560
|
|
|
3.0
|
%
|
|
3.8
|
|
||||
Cash and cash equivalents
|
|
72,926
|
|
|
—
|
|
|
—
|
|
|
72,926
|
|
|
0.3
|
%
|
|
0.0
|
|
||||
Total
|
|
$
|
2,113,778
|
|
|
$
|
42,964
|
|
|
$
|
(24,256
|
)
|
|
$
|
2,132,486
|
|
|
2.9
|
%
|
|
3.6
|
|
December 31, 2018
|
|
Original or Amortized Cost
|
|
Gross Unrealized Gains
|
|
Gross Unrealized Losses
|
|
Fair Value
|
|
Average yield(1)
|
|
Average duration(2)
|
||||||||||
AFS fixed maturities
|
|
($ in thousands)
|
|
|
|
|
||||||||||||||||
U.S. treasury bonds
|
|
$
|
138,625
|
|
|
$
|
448
|
|
|
$
|
(1
|
)
|
|
$
|
139,072
|
|
|
2.6
|
%
|
|
1.1
|
|
U.S. agency bonds – mortgage-backed
|
|
1,485,716
|
|
|
3,491
|
|
|
(36,073
|
)
|
|
1,453,134
|
|
|
3.0
|
%
|
|
5.8
|
|
||||
U.S. agency bonds – other
|
|
129,741
|
|
|
40
|
|
|
(548
|
)
|
|
129,233
|
|
|
2.8
|
%
|
|
1.0
|
|
||||
Non-U.S. government and supranational bonds
|
|
11,212
|
|
|
66
|
|
|
(1,206
|
)
|
|
10,072
|
|
|
3.4
|
%
|
|
5.1
|
|
||||
Asset-backed securities
|
|
216,072
|
|
|
425
|
|
|
(1,415
|
)
|
|
215,082
|
|
|
4.2
|
%
|
|
2.4
|
|
||||
Corporate bonds
|
|
1,128,614
|
|
|
6,525
|
|
|
(30,164
|
)
|
|
1,104,975
|
|
|
3.0
|
%
|
|
4.3
|
|
||||
Total AFS fixed maturities
|
|
3,109,980
|
|
|
10,995
|
|
|
(69,407
|
)
|
|
3,051,568
|
|
|
3.1
|
%
|
|
4.6
|
|
||||
HTM fixed maturities
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Corporate bonds
|
|
957,845
|
|
|
3,872
|
|
|
(20,990
|
)
|
|
940,727
|
|
|
3.7
|
%
|
|
4.4
|
|
||||
Municipal bonds
|
|
57,836
|
|
|
—
|
|
|
(551
|
)
|
|
57,285
|
|
|
3.2
|
%
|
|
4.0
|
|
||||
Total HTM fixed maturities
|
|
1,015,681
|
|
|
3,872
|
|
|
(21,541
|
)
|
|
998,012
|
|
|
3.7
|
%
|
|
4.4
|
|
||||
Cash and cash equivalents
|
|
330,989
|
|
|
—
|
|
|
—
|
|
|
330,989
|
|
|
2.1
|
%
|
|
0.0
|
|
||||
Total
|
|
$
|
4,456,650
|
|
|
$
|
14,867
|
|
|
$
|
(90,948
|
)
|
|
$
|
4,380,569
|
|
|
3.1
|
%
|
|
4.2
|
|
(1)
|
Average yield is calculated by dividing annualized investment income for each sub-component of AFS and HTM securities and cash and cash equivalents (including amortization of premium or discount) by amortized cost.
|
(2)
|
Average duration in years.
|
|
|
September 30, 2019
|
|
December 31, 2018
|
||||||||||
($ in thousands)
|
|
Fair Value
|
|
% of Total
|
|
Fair Value
|
|
% of Total
|
||||||
U.S. agency bonds - mortgage-backed
|
|
|
|
|
|
|
|
|
||||||
Residential mortgage-backed ("RMBS")
|
|
|
|
|
|
|
|
|
||||||
GNMA – fixed rate
|
|
$
|
102,018
|
|
|
13.4
|
%
|
|
$
|
152,626
|
|
|
9.6
|
%
|
GNMA – variable rate
|
|
7,441
|
|
|
1.0
|
%
|
|
10,773
|
|
|
0.7
|
%
|
||
FNMA – fixed rate
|
|
299,079
|
|
|
39.4
|
%
|
|
742,749
|
|
|
46.9
|
%
|
||
FHLMC – fixed rate
|
|
350,452
|
|
|
46.2
|
%
|
|
546,986
|
|
|
34.6
|
%
|
||
Total U.S. agency bonds - mortgage-backed
|
|
758,990
|
|
|
100.0
|
%
|
|
1,453,134
|
|
|
91.8
|
%
|
||
U.S. agency bonds - fixed rate
|
|
—
|
|
|
—
|
%
|
|
129,233
|
|
|
8.2
|
%
|
||
Total U.S. agency bonds
|
|
$
|
758,990
|
|
|
100.0
|
%
|
|
$
|
1,582,367
|
|
|
100.0
|
%
|
|
|
Ratings(1)
|
|
|
|
|
||||||||||||||||
September 30, 2019
|
|
AAA
|
|
AA+, AA, AA-
|
|
A+, A, A-
|
|
BBB+, BBB, BBB-
|
|
BB+ or lower
|
|
Fair Value
|
|
% of Corporate bonds portfolio
|
||||||||
Corporate bonds
|
|
|
|
|
|
|
|
|
|
|
|
($ in thousands)
|
|
|
||||||||
Basic Materials
|
|
—
|
%
|
|
—
|
%
|
|
0.6
|
%
|
|
1.4
|
%
|
|
—
|
%
|
|
$
|
19,405
|
|
|
2.0
|
%
|
Communications
|
|
—
|
%
|
|
—
|
%
|
|
2.3
|
%
|
|
3.9
|
%
|
|
—
|
%
|
|
63,678
|
|
|
6.2
|
%
|
|
Consumer
|
|
—
|
%
|
|
0.1
|
%
|
|
10.3
|
%
|
|
19.1
|
%
|
|
—
|
%
|
|
299,891
|
|
|
29.5
|
%
|
|
Energy
|
|
—
|
%
|
|
0.8
|
%
|
|
6.0
|
%
|
|
3.7
|
%
|
|
—
|
%
|
|
106,404
|
|
|
10.5
|
%
|
|
Financial Institutions
|
|
—
|
%
|
|
3.5
|
%
|
|
29.4
|
%
|
|
10.4
|
%
|
|
0.5
|
%
|
|
444,763
|
|
|
43.8
|
%
|
|
Industrials
|
|
—
|
%
|
|
—
|
%
|
|
1.8
|
%
|
|
3.4
|
%
|
|
—
|
%
|
|
52,941
|
|
|
5.2
|
%
|
|
Technology
|
|
—
|
%
|
|
—
|
%
|
|
1.1
|
%
|
|
1.7
|
%
|
|
—
|
%
|
|
28,574
|
|
|
2.8
|
%
|
|
Total
|
|
—
|
%
|
|
4.4
|
%
|
|
51.5
|
%
|
|
43.6
|
%
|
|
0.5
|
%
|
|
$
|
1,015,656
|
|
|
100.0
|
%
|
(1)
|
Ratings as assigned by S&P, or equivalent
|
September 30, 2019
|
|
Fair Value
|
|
% of Holdings
|
|
Rating(1)
|
|||
|
|
($ in thousands)
|
|
|
|
|
|||
Gilead Sciences Inc, 3.65% Due 3/1/2026
|
|
$
|
21,436
|
|
|
1.0
|
%
|
|
A
|
Rabobank Nederland Utrec, 3.875% Due 2/8/2022
|
|
19,906
|
|
|
1.0
|
%
|
|
A+
|
|
BNP Paribas, 5.00% Due 1/15/2021
|
|
19,808
|
|
|
1.0
|
%
|
|
A+
|
|
Electricite de France, 4.625%, Due 9/11/2024
|
|
17,194
|
|
|
0.8
|
%
|
|
A-
|
|
UBS Group Funding (Jersey) Ltd, 2.65% Due 2/1/2022
|
|
17,144
|
|
|
0.8
|
%
|
|
A-
|
|
Bank of New York Mellon Corp, 3.00%, Due 2/24/2025
|
|
16,657
|
|
|
0.8
|
%
|
|
A
|
|
Pepsico Inc., 3.60%, Due 3/1/2024
|
|
15,963
|
|
|
0.8
|
%
|
|
A+
|
|
Allergan Funding SCS, 3.80%, Due 3/15/2025
|
|
15,707
|
|
|
0.8
|
%
|
|
BBB
|
|
BAT International Finance PLC, 3.95%, Due 6/15/2025
|
|
15,615
|
|
|
0.7
|
%
|
|
BBB+
|
|
Daimler Finance North America LLC, 3.30%, Due 5/19/2025
|
|
13,455
|
|
|
0.7
|
%
|
|
A
|
|
Total
|
|
$
|
172,885
|
|
|
8.4
|
%
|
|
|
(1)
|
Ratings as assigned by S&P, or equivalent
|
|
|
September 30, 2019
|
|
December 31, 2018
|
||||||||||
($ in thousands)
|
|
Fair Value
|
|
% of Total
|
|
Fair Value
|
|
% of Total
|
||||||
Non-U.S. dollar denominated corporate bonds
|
|
$
|
302,526
|
|
|
96.3
|
%
|
|
$
|
338,712
|
|
|
97.1
|
%
|
Non-U.S. government and supranational bonds
|
|
11,760
|
|
|
3.7
|
%
|
|
10,072
|
|
|
2.9
|
%
|
||
Total non-U.S. dollar denominated AFS securities
|
|
$
|
314,286
|
|
|
100.0
|
%
|
|
$
|
348,784
|
|
|
100.0
|
%
|
|
|
September 30, 2019
|
|
December 31, 2018
|
||||||||||
($ in thousands)
|
|
Fair Value
|
|
% of Total
|
|
Fair Value
|
|
% of Total
|
||||||
Euro
|
|
$
|
266,623
|
|
|
84.8
|
%
|
|
$
|
284,440
|
|
|
81.6
|
%
|
British Pound
|
|
40,219
|
|
|
12.8
|
%
|
|
37,469
|
|
|
10.7
|
%
|
||
Canadian Dollar
|
|
5,317
|
|
|
1.7
|
%
|
|
5,658
|
|
|
1.6
|
%
|
||
All other currencies
|
|
2,127
|
|
|
0.7
|
%
|
|
21,217
|
|
|
6.1
|
%
|
||
Total non-U.S. dollar denominated AFS securities
|
|
$
|
314,286
|
|
|
100.0
|
%
|
|
$
|
348,784
|
|
|
100.0
|
%
|
Ratings(1)
|
|
September 30, 2019
|
|
December 31, 2018
|
||||||||||
($ in thousands)
|
|
Fair Value
|
|
% of Total
|
|
Fair Value
|
|
% of Total
|
||||||
AAA
|
|
$
|
474
|
|
|
0.2
|
%
|
|
$
|
2,258
|
|
|
0.7
|
%
|
AA+, AA, AA-
|
|
20,542
|
|
|
6.8
|
%
|
|
28,725
|
|
|
8.5
|
%
|
||
A+, A, A-
|
|
134,608
|
|
|
44.4
|
%
|
|
148,204
|
|
|
43.7
|
%
|
||
BBB+, BBB, BBB-
|
|
141,574
|
|
|
46.8
|
%
|
|
148,672
|
|
|
43.9
|
%
|
||
BB+ or lower
|
|
5,328
|
|
|
1.8
|
%
|
|
10,853
|
|
|
3.2
|
%
|
||
Total non-U.S. dollar denominated corporate bonds
|
|
$
|
302,526
|
|
|
100.0
|
%
|
|
$
|
338,712
|
|
|
100.0
|
%
|
(1)
|
Ratings as assigned by S&P, or equivalent
|
($ in thousands)
|
|
September 30, 2019
|
|
December 31, 2018
|
|
Change
|
|
Change %
|
|||||||
Reinsurance recoverable on unpaid losses
|
|
$
|
615,481
|
|
|
$
|
71,901
|
|
|
$
|
543,580
|
|
|
756.0
|
%
|
Deferred commission and other acquisition expenses
|
|
90,367
|
|
|
388,442
|
|
|
(298,075
|
)
|
|
(76.7
|
)%
|
|||
Funds withheld receivable
|
|
678,775
|
|
|
27,039
|
|
|
651,736
|
|
|
2,410.4
|
%
|
|||
Reserve for loss and LAE
|
|
2,625,858
|
|
|
3,126,134
|
|
|
(500,276
|
)
|
|
(16.0
|
)%
|
|||
Unearned premiums
|
|
261,130
|
|
|
1,200,419
|
|
|
(939,289
|
)
|
|
(78.2
|
)%
|
|||
Deferred gain on retroactive reinsurance
|
|
104,542
|
|
|
—
|
|
|
104,542
|
|
|
NM
|
|
|||
Accrued expenses and other liabilities
|
|
12,416
|
|
|
66,183
|
|
|
(53,767
|
)
|
|
(81.2
|
)%
|
($ in thousands)
|
|
September 30, 2019
|
|
December 31, 2018
|
|
Change
|
|
Change %
|
|||||||
Preference shares
|
|
$
|
465,000
|
|
|
$
|
465,000
|
|
|
$
|
—
|
|
|
—
|
%
|
Common shareholders' equity
|
|
68,155
|
|
|
89,275
|
|
|
(21,120
|
)
|
|
(23.7
|
)%
|
|||
Total Maiden shareholders' equity
|
|
533,155
|
|
|
554,275
|
|
|
(21,120
|
)
|
|
(3.8
|
)%
|
|||
Senior Notes - principal amount
|
|
262,500
|
|
|
262,500
|
|
|
—
|
|
|
—
|
%
|
|||
Total capital resources
|
|
$
|
795,655
|
|
|
$
|
816,775
|
|
|
$
|
(21,120
|
)
|
|
(2.6
|
)%
|
•
|
net loss attributable to Maiden of $110.4 million for the nine months ended September 30, 2019 partly offset by:
|
•
|
net increase in AOCI of $87.6 million which arose due to: 1) an increase in net unrealized gains on investment of $78.3 million resulting from the net increase in the fair value of our investment portfolio relating to market price movements due to declining interest rates during the nine months ended September 30, 2019; 2) an increase in cumulative translation adjustments of $9.2 million due to the effect of the recent depreciation of the euro and British pound relative to the original currencies on our non-U.S. dollar net liabilities (excluding non-U.S. dollar AFS fixed maturities); and
|
•
|
net increase in share based transactions of $1.7 million.
|
|
|
September 30, 2019
|
|
December 31, 2018
|
||||
($ in thousands except share and per share data)
|
|
|
|
|
||||
Ending Maiden common shareholders’ equity
|
|
$
|
68,155
|
|
|
$
|
89,275
|
|
Proceeds from assumed conversion of dilutive options
|
|
—
|
|
|
362
|
|
||
Numerator for diluted book value per common share calculation
|
|
$
|
68,155
|
|
|
$
|
89,637
|
|
|
|
|
|
|
||||
Common shares outstanding
|
|
83,111,180
|
|
|
82,948,577
|
|
||
Shares issued from assumed conversion of dilutive options and restricted share units
|
|
1,055,273
|
|
|
398,390
|
|
||
Denominator for diluted book value per common share calculation
|
|
84,166,453
|
|
|
83,346,967
|
|
||
|
|
|
|
|
||||
Book value per common share
|
|
$
|
0.82
|
|
|
$
|
1.08
|
|
Diluted book value per common share
|
|
0.81
|
|
|
1.08
|
|
|
|
September 30, 2019
|
|
December 31, 2018
|
||||
($ in thousands)
|
|
|
|
|
||||
Senior notes - principal amount
|
|
$
|
262,500
|
|
|
$
|
262,500
|
|
Maiden shareholders’ equity
|
|
533,155
|
|
|
554,275
|
|
||
Total capital resources
|
|
$
|
795,655
|
|
|
$
|
816,775
|
|
Ratio of debt to total capital resources
|
|
33.0
|
%
|
|
32.1
|
%
|
For the Three Months Ended September 30,
|
|
2019
|
|
2018
|
||||
|
|
($ in thousands except per share data)
|
||||||
Net loss attributable to Maiden common shareholders
|
|
$
|
(58,327
|
)
|
|
$
|
(308,839
|
)
|
Add (subtract):
|
|
|
|
|
||||
Net realized (gains) losses on investment
|
|
(12,700
|
)
|
|
225
|
|
||
Total other-than-temporary impairment losses
|
|
165
|
|
|
479
|
|
||
Foreign exchange and other (gains) losses
|
|
(7,827
|
)
|
|
552
|
|
||
Loss from NGHC Quota Share run-off
|
|
108
|
|
|
1,369
|
|
||
Unamortized deferred gain on retroactive reinsurance
|
|
104,542
|
|
|
—
|
|
||
Loss from discontinued operations, net of income tax
|
|
277
|
|
|
59,819
|
|
||
Interest expense paid under the LPT/ADC Agreement and the Commutation Agreement
|
|
13,596
|
|
|
—
|
|
||
Separation costs incurred due to retirement of former executives
|
|
—
|
|
|
5,500
|
|
||
Non-GAAP operating earnings (loss) attributable to Maiden common shareholders
|
|
$
|
39,834
|
|
|
$
|
(240,895
|
)
|
|
|
|
|
|
||||
Diluted loss per share attributable to Maiden common shareholders
|
|
$
|
(0.70
|
)
|
|
$
|
(3.72
|
)
|
Add (subtract):
|
|
|
|
|
||||
Net realized (gains) losses on investment
|
|
(0.15
|
)
|
|
#VALUE!
|
|
||
Total other-than-temporary impairment losses
|
|
—
|
|
|
0.01
|
|
||
Foreign exchange and other (gains) losses
|
|
(0.09
|
)
|
|
0.01
|
|
||
Loss from NGHC Quota Share run-off
|
|
—
|
|
|
0.01
|
|
||
Unamortized deferred gain on retroactive reinsurance
|
|
1.26
|
|
|
—
|
|
||
Loss from discontinued operations, net of income tax
|
|
—
|
|
|
0.72
|
|
||
Interest expense paid under the LPT/ADC Agreement and the Commutation Agreement
|
|
0.16
|
|
|
—
|
|
||
Separation costs incurred due to retirement of former executives
|
|
—
|
|
|
0.07
|
|
||
Non-GAAP diluted operating earnings (loss) per common share
|
|
$
|
0.48
|
|
|
|
#VALUE!
|
|
|
|
|
|
|
||||
For the Nine Months Ended September 30,
|
|
2019
|
|
2018
|
||||
|
|
($ in thousands except per share data)
|
||||||
Net loss attributable to Maiden common shareholders
|
|
$
|
(110,376
|
)
|
|
$
|
(301,025
|
)
|
Add (subtract):
|
|
|
|
|
||||
Net realized (gains) losses on investment
|
|
(25,685
|
)
|
|
282
|
|
||
Total other-than-temporary impairment losses
|
|
165
|
|
|
479
|
|
||
Foreign exchange and other gains
|
|
(14,013
|
)
|
|
(1,862
|
)
|
||
Loss from NGHC Quota Share run-off
|
|
312
|
|
|
1,369
|
|
||
Unamortized deferred gain on retroactive reinsurance
|
|
104,542
|
|
|
—
|
|
||
Loss from discontinued operations, net of income tax
|
|
22,327
|
|
|
41,609
|
|
||
Interest expense paid under the LPT/ADC Agreement and the Commutation Agreement
|
|
13,596
|
|
|
—
|
|
||
Separation costs incurred due to retirement of former executives
|
|
—
|
|
|
5,500
|
|
||
Non-GAAP operating loss attributable to Maiden common shareholders
|
|
$
|
(9,132
|
)
|
|
$
|
(253,648
|
)
|
|
|
|
|
|
||||
Diluted loss per share attributable to Maiden common shareholders
|
|
$
|
(1.33
|
)
|
|
$
|
(3.62
|
)
|
Add (subtract):
|
|
|
|
|
||||
Net realized (gains) losses on investment
|
|
(0.31
|
)
|
|
—
|
|
||
Total other-than-temporary impairment losses
|
|
—
|
|
|
0.01
|
|
||
Foreign exchange and other gains
|
|
(0.17
|
)
|
|
(0.03
|
)
|
||
Loss from NGHC Quota Share run-off
|
|
0.01
|
|
|
0.02
|
|
||
Unamortized deferred gain on retroactive reinsurance
|
|
1.26
|
|
|
—
|
|
||
Loss from discontinued operations, net of income tax
|
|
0.27
|
|
|
0.50
|
|
||
Interest expense paid under the LPT/ADC Agreement and the Commutation Agreement
|
|
0.16
|
|
|
—
|
|
||
Separation costs incurred due to retirement of former executives
|
|
—
|
|
|
0.07
|
|
||
Non-GAAP diluted operating loss per common share
|
|
$
|
(0.11
|
)
|
|
$
|
(3.05
|
)
|
|
|
For the Three Months Ended September 30,
|
|
For the Nine Months Ended September 30,
|
||||||||||||
($ in thousands)
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Gross premiums written
|
|
$
|
35,844
|
|
|
$
|
484,493
|
|
|
$
|
(523,178
|
)
|
|
$
|
1,629,347
|
|
Net premiums written
|
|
$
|
35,944
|
|
|
$
|
482,806
|
|
|
$
|
(525,995
|
)
|
|
$
|
1,626,485
|
|
Net premiums earned
|
|
$
|
94,898
|
|
|
$
|
520,077
|
|
|
$
|
411,986
|
|
|
$
|
1,541,278
|
|
Other insurance revenue
|
|
554
|
|
|
1,870
|
|
|
2,058
|
|
|
7,629
|
|
||||
Non-GAAP net loss and LAE(1)
|
|
(36,318
|
)
|
|
(600,296
|
)
|
|
(310,568
|
)
|
|
(1,323,503
|
)
|
||||
Commission and other acquisition expenses
|
|
(32,763
|
)
|
|
(167,618
|
)
|
|
(152,036
|
)
|
|
(497,026
|
)
|
||||
General and administrative expenses
|
|
(2,084
|
)
|
|
(5,208
|
)
|
|
(9,035
|
)
|
|
(16,284
|
)
|
||||
Non-GAAP underwriting income (loss)
|
|
$
|
24,287
|
|
|
$
|
(251,175
|
)
|
|
$
|
(57,595
|
)
|
|
$
|
(287,906
|
)
|
|
|
|
|
|
|
|
|
|
||||||||
Ratios:
|
|
|
|
|
|
|
|
|
||||||||
Non-GAAP net loss and LAE ratio(1)
|
|
38.1
|
%
|
|
115.0
|
%
|
|
75.1
|
%
|
|
85.4
|
%
|
||||
Commission and other acquisition expense ratio
|
|
34.3
|
%
|
|
32.1
|
%
|
|
36.7
|
%
|
|
32.1
|
%
|
||||
General and administrative expense ratio
|
|
8.9
|
%
|
|
3.7
|
%
|
|
9.0
|
%
|
|
3.2
|
%
|
||||
Expense ratio
|
|
43.2
|
%
|
|
35.8
|
%
|
|
45.7
|
%
|
|
35.3
|
%
|
||||
Non-GAAP combined ratio(1)
|
|
81.3
|
%
|
|
150.8
|
%
|
|
120.8
|
%
|
|
120.7
|
%
|
|
|
For the Three Months Ended September 30,
|
|
For the Nine Months Ended September 30,
|
||||||||
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||
Combined ratio
|
|
190.8
|
%
|
|
150.8
|
%
|
|
146.0
|
%
|
|
120.7
|
%
|
Less: Unamortized deferred gain on retroactive reinsurance
|
|
109.5
|
%
|
|
—
|
%
|
|
25.2
|
%
|
|
—
|
%
|
Non-GAAP combined ratio(1)
|
|
81.3
|
%
|
|
150.8
|
%
|
|
120.8
|
%
|
|
120.7
|
%
|
|
|
For the Three Months Ended September 30,
|
|
For the Nine Months Ended September 30,
|
||||||||||||
($ in thousands)
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Net loss and loss adjustment expenses
|
|
$
|
140,860
|
|
|
$
|
600,296
|
|
|
$
|
415,110
|
|
|
$
|
1,323,503
|
|
Less: Unamortized deferred gain on retroactive reinsurance
|
|
104,542
|
|
|
—
|
|
|
104,542
|
|
|
—
|
|
||||
Non-GAAP net loss and loss adjustment expenses
|
|
$
|
36,318
|
|
|
$
|
600,296
|
|
|
$
|
310,568
|
|
|
$
|
1,323,503
|
|
($ in thousands)
|
|
September 30, 2019
|
|
December 31, 2018
|
|
Change
|
|
Change %
|
|||||||
Preference shares
|
|
$
|
465,000
|
|
|
$
|
465,000
|
|
|
$
|
—
|
|
|
—
|
%
|
Common shareholders' equity
|
|
68,155
|
|
|
89,275
|
|
|
(21,120
|
)
|
|
(23.7
|
)%
|
|||
Total Maiden shareholders' equity
|
|
533,155
|
|
|
554,275
|
|
|
(21,120
|
)
|
|
(3.8
|
)%
|
|||
Unamortized deferred gain on retroactive reinsurance
|
|
104,542
|
|
|
—
|
|
|
104,542
|
|
|
100.0
|
%
|
|||
Adjusted Maiden shareholders' equity
|
|
637,697
|
|
|
554,275
|
|
|
83,422
|
|
|
15.1
|
%
|
|||
Senior Notes - principal amount
|
|
262,500
|
|
|
262,500
|
|
|
—
|
|
|
—
|
%
|
|||
Adjusted total capital resources
|
|
$
|
900,197
|
|
|
$
|
816,775
|
|
|
$
|
83,422
|
|
|
10.2
|
%
|
|
|
September 30, 2019
|
|
December 31, 2018
|
||||
($ in thousands except per share data)
|
|
|
|
|
||||
Book value per common share
|
|
$
|
0.82
|
|
|
$
|
1.08
|
|
Unamortized deferred gain on retroactive reinsurance
|
|
1.26
|
|
|
—
|
|
||
Adjusted book value per common share
|
|
$
|
2.08
|
|
|
$
|
1.08
|
|
|
|
September 30, 2019
|
|
December 31, 2018
|
||||
($ in thousands)
|
|
|
|
|
||||
Senior notes - principal amount
|
|
$
|
262,500
|
|
|
$
|
262,500
|
|
Adjusted Maiden shareholders’ equity
|
|
637,697
|
|
|
554,275
|
|
||
Adjusted total capital resources
|
|
$
|
900,197
|
|
|
$
|
816,775
|
|
Ratio of debt to adjusted total capital resources
|
|
29.2
|
%
|
|
32.1
|
%
|
Hypothetical Change in Interest Rates
|
|
Fair Value
|
|
Estimated Change in Fair Value
|
|
Hypothetical % (Decrease) Increase in Shareholders’ Equity
|
|||||
|
|
($ in thousands)
|
|
|
|||||||
200 basis point increase
|
|
$
|
1,888,293
|
|
|
$
|
(171,267
|
)
|
|
(32.1
|
)%
|
100 basis point increase
|
|
1,973,927
|
|
|
(85,633
|
)
|
|
(16.1
|
)%
|
||
No change
|
|
2,059,560
|
|
|
—
|
|
|
—
|
%
|
||
100 basis point decrease
|
|
2,136,749
|
|
|
77,189
|
|
|
14.5
|
%
|
||
200 basis point decrease
|
|
2,210,499
|
|
|
150,939
|
|
|
28.3
|
%
|
Ratings(1)
|
|
September 30, 2019
|
|
December 31, 2018
|
||
AAA or better
|
|
45.5
|
%
|
|
45.8
|
%
|
AA+, AA, AA-, A+, A, A-
|
|
32.5
|
%
|
|
31.9
|
%
|
BBB+, BBB, BBB-
|
|
21.7
|
%
|
|
21.0
|
%
|
BB+ or lower
|
|
0.3
|
%
|
|
1.3
|
%
|
|
|
100.0
|
%
|
|
100.0
|
%
|
(1)
|
Ratings as assigned by S&P, or equivalent
|
Credit Ratings
|
|
September 30, 2019
|
|
December 31, 2018
|
||
A or Better
|
|
0.3
|
%
|
|
2.3
|
%
|
BBB
|
|
99.7
|
%
|
|
97.6
|
%
|
B++ or worse
|
|
—
|
%
|
|
0.1
|
%
|
|
|
100.0
|
%
|
|
100.0
|
%
|
Exhibit
No.
|
|
Description
|
31.1
|
|
|
31.2
|
|
|
32.1
|
|
|
32.2
|
|
|
10.1
|
|
|
101.1
|
|
The following materials from Maiden Holdings, Ltd. Quarterly Report on Form 10-Q for the quarter ended September 30, 2019, formatted in iXBRL (Inline eXtensive Business Reporting Language): (i) the unaudited Condensed Consolidated Balance Sheets, (ii) the unaudited Condensed Consolidated Statements of Income, (iii) the unaudited Condensed Consolidated Statements of Comprehensive Income, (iv) the unaudited Condensed Consolidated Statements of Changes in Shareholders' Equity, (v) the unaudited Condensed Consolidated Statements of Cash Flows, and (vi) Notes to unaudited Condensed Consolidated Financial Statements.
|
|
MAIDEN HOLDINGS, LTD.
|
|
|
By:
|
|
November 12, 2019
|
|
/s/ Lawrence F. Metz
|
|
|
Lawrence F. Metz
President and Chief Executive Officer
|
|
|
|
|
|
/s/ Patrick J. Haveron
|
|
|
Patrick J. Haveron
Chief Financial Officer
|
|
|
|
1 Year Maiden Holdings, Ltd. Pref Shs Ser A (Bermuda) Chart |
1 Month Maiden Holdings, Ltd. Pref Shs Ser A (Bermuda) Chart |
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