EX-99.1 2 v121423_ex99-1.htm
 
press release    
  Maiden Holding, LTD
 
For more information, please contact:
Maiden Holdings, Ltd.
Devora M. Goldenberg
441.292.7090
info@maiden.bm
 
For immediate release
July 30, 2008

Maiden Holdings, Ltd. Reports Second Quarter Net Income of $13.8 million

Maiden Holdings, Ltd. (NASDAQ: MHLD), today reported net income of $13.8 million and net premium written of $171.3 million for the second quarter ended June 30, 2008. Earnings per share for the second quarter were $0.23.

Second Quarter and Six Months 2008 Highlights:

·
Net premium written for second quarter 2008 was $171.3 million
·
Net premium written for six months ended June 30, 2008 was $273.7 million
·
Net income for the second quarter was $13.8 million
·
Net income for six months ended June 30, 2008 was $26.3 million
·
Return on equity for the second quarter was 10.4% on an annualized basis
·
Return on equity for six months ended June 30, 2008 on an annualized basis was 9.8%
·
Quarterly earnings per basic share for second quarter 2008 was $0.23
·
Earnings per basic share for six months ended June 30, 2008 was $0.44
·
The combined ratio for the second quarter was 92.3%
·
The combined ratio for six months ended June 30, 2008 was 92.4%

Second Quarter 2008 Results:

Revenue:

Net written premium for the second quarter was $171.3 million and net earned premium was $77.3 million. Net investment income was $7.8 million for the quarter ended June 30, 2008. For the six months ended June 30, 2008, net written premium was $273.7 million and net earned premium was $142.6 million. Net investment income for the six months was $15.4 million.

Expenses:

The Company’s loss ratio for the second quarter 2008 was 56.4%. The Company’s expenses for the second quarter 2008 were $27.7 million resulting in an expense ratio of 35.9% for the quarter. The Company’s loss ratio for six months ended June 30, 2008 was 57.1% and the expense ratio was 35.4%.
 

Other Matters:

Shareholders’ Equity as of June 30, 2008 increased to $536.7 million from $530.6 million as of March 31, 2008. During the second quarter the Company announced a dividend of $0.05.

Conference Call:

On July 31, 2008 at 3:00 p.m. Atlantic Time (2:00 p.m. ET), the Company will hold a conference call that can be accessed as follows:

Toll Dial-in (International Callers): 719.325.4845
Toll-free Dial-in: 877.340.7913
Webcast: http://www.maiden.bm

In order to participate in the conference call, you must register at http://www.maiden.bm.

A replay of the conference call will be available starting at 5:00 p.m. Atlantic Time on Thursday, July 31, 2008 through Wednesday, August 6, 2008 by dialing toll 719.457.0820 or toll-free 888.203.1112. The passcode for the replay is 4188502. Replay of the webcast will also be available at http://www.maiden.bm.
 
About Maiden Holdings, Ltd.

Maiden Holdings, Ltd. is a Bermuda holding company formed in May, 2007 to offer customized reinsurance products and services, through Maiden Insurance Company, Ltd., its wholly owned Bermuda reinsurance subsidiary, to small and mid-size insurance companies in the United States and Europe.
 
Forward Looking Statement
 
This release contains “forward-looking statements” which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The forward-looking statements are based on the Company’s current expectations and beliefs concerning future developments and their potential effects on the Company. There can be no assurance that actual developments will be those anticipated by the Company. Actual results may differ materially from those projected as a result of significant risks and uncertainties, including non-receipt of the expected payments, changes in interest rates, effect of the performance of financial markets on investment income and fair values of investments, developments of claims and the effect on loss reserves, accuracy in projecting loss reserves, the impact of competition and pricing environments, changes in the demand for the Company’s products, the effect of general economic conditions, adverse state and federal legislation, regulations and regulatory investigations into industry practices, developments relating to existing agreements, heightened competition, changes in pricing environments, and changes in asset valuations. The Company undertakes no obligation to publicly update any forward-looking statements.
#  #  #
 
 
Maiden Holdings, Ltd.
Income Statement
(in thousands (000's), except per share data)
(Unaudited)
 
   
For the Three Months Ended June 30, 2008
  
Period from May 31 to June 30, 2007
  
For the Six Months Ended June 30, 2008
  
Period from May 31 to June 30, 2007
  
Revenues:
                     
Premium income:
                     
Net premiums written
  
$
171,251
  
$
-
 
$
273,683
 
$
-
 
Change in unearned premiums
    
(93,913
)
  
-
   
(131,040
)
  
-
 
Net earned premium
    
77,338
   
-
   
142,643
   
-
 
Net investment income
    
7,763
   
59
   
15,372
   
59
 
Net realized investment gains
    
39
   
-
   
163
   
-
 
Total revenues
    
85,140
   
59
   
158,178
   
59
 
Expenses:
                          
Loss and loss adjustment expenses
   
43,610
   
-
   
81,446
   
-
 
Commission and other acquisition expenses
   
25,498
   
-
   
46,758
   
-
 
Salaries and benefits
    
615
   
-
   
1,147
   
-
 
Other operating expenses
    
1,625
   
136
   
2,519
   
136
 
Total expenses
    
71,348
   
136
   
131,870
   
136
 
                     
Net income
  
$
13,792
  
$
(77
)
  
26,308
 
$
(77
)
                   
                           
Basic and diluted earnings per common share
  
$
0.23
  
$
(0.02
)
  
0.44
 
$
(0.02
)
Dividends declared per common share
  
$
0.05
  
$
-
   
0.10
 
$
-
 
                           
Weighted average number of basic and diluted shares outstanding
   
59,550,000
   
4,026
   
59,550,000
   
4,026
 
                           
Combined ratio
    
92.3
%
  
N/A
    
92.4
%
  
N/A
  
Annualized return on equity
    
10.4
%
  
-3.80
%
  
9.8
%
  
-3.80
%
 
Maiden Holdings, Ltd.
Balance Sheet
(in thousands (000's), except per share data)
           
   
(Unaudited)
30-Jun-08
  
31-Dec-07
  
Assets
           
Fixed maturities, available-for-sale, at fair value (amortized cost $752,990 ; $488,765)
  
$
721,496
  
$
474,789
  
Other investments, at fair value (cost $15,199; $15,176)
    
12,134
    
15,656
  
Total investments
    
733,630
    
490,445
  
Cash and cash equivalents
    
74,170
    
35,729
  
Accrued investment income
    
4,827
    
3,204
  
Reinsurance balances receivable, net
   
101,933
    
27,990
  
Loan to related party
   
167,975
    
113,542
  
Prepaid expenses and other assets
    
62
    
454
  
Deferred commission and other acquisition costs
   
91,011
    
44,215
  
Furniture and equipment, net
   
70
    
29
  
 
    
 
    
 
  
Total Assets
  
$
1,173,678
  
$
715,608
  
Liabilities and Shareholders’ Equity
              
Liabilities
              
Loss and loss adjustment expense reserves
 
$
83,340
  
$
38,508
  
Unearned premiums
   
268,206
    
137,166
  
Accrued expenses and other liabilities
    
4,175
    
2,589
  
Due to broker
    
26,660
    
-
  
Securities sold under agreements to repurchase, at contract value
    
254,557
    
-
  
 
    
 
    
 
  
Total Liabilities
    
636,938
    
178,263
  
               
Shareholders’ Equity:
              
Common shares
    
596
    
596
  
Additional paid-in capital
    
530,038
    
529,647
  
Accumulated other comprehensive loss
    
(34,845
)
  
(13,496
)
Retained earnings
    
40,951
    
20,598
  
Total Shareholders’ Equity
    
536,740
    
537,345
  
Total Liabilities and Shareholders’ Equity
  
$
1,173,677
  
$
715,608
  
               
Book value per share
  
$
9.01
  
$
9.02
 
               
Common shares outstanding
    
59,550,000
    
59,550,000