Maiden Holdings, Ltd. Completes Acquisition Of GMAC International Insurance Services, Ltd. Reinsurance Businesses
HAMILTON, Bermuda, Nov. 30, 2010 (GLOBE NEWSWIRE) -- Maiden Holdings, Ltd. ("Maiden") (Nasdaq:MHLD) today announced that it has completed its acquisition of the majority of the reinsurance-related infrastructure, assets and liabilities of U.K.-based GMAC International Insurance Services, Ltd. ("GMAC International Insurance"), including renewal rights on nearly $100 million of predominantly personal auto quota share reinsurance as well as the supporting business development subsidiaries in Europe.
"We are excited about the opportunities that the GMAC International Insurance transaction provides as we continue to build out and enhance our disciplined, low-volatility, relationship-oriented model," said Art Raschbaum, President and CEO of Maiden. "This transaction achieves our goal of expanding the existing Maiden model outside the U.S. and Bermuda, and positions us well to begin to serve the non-catastrophic reinsurance needs of property and casualty insurance clients across Europe and in other select markets. We welcome the talented team there, led by Ron Judd, and are confident in our ability to profitably grow this unique auto-centric reinsurance services platform and continue to generate attractive returns for our shareholders."
The transaction includes the assumption of more than $100 million of loss reserves and net unearned premiums as well as the corresponding assets, and was funded through existing cash and investments. GMAC International Insurance primarily focuses on providing branded auto and auto-related insurance products through its insurer partners to retail customers in the European Union and other global markets. Maiden expects the transaction to be accretive to 2011 earnings, and to generally perform within its overall stated targets of a 96% combined ratio and medium-term ROE target of 15%.About Maiden Holdings, Ltd. Maiden Holdings, Ltd. is a Bermuda-based holding company formed in 2007. Through our subsidiaries which are each A- rated (excellent) by A.M. Best, we are focused on providing non-catastrophic, customized reinsurance products and services, to small and mid-size insurance companies in the United States and Europe. As of September 30, 2010, the company had $2.8 billion in assets and shareholders' equity of $758 million.
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