This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

A.M. Best Affirms Ratings Of Maiden Holdings, Ltd. And Its Subsidiaries

Stocks in this article: MHLD

A.M. Best Co. has affirmed the financial strength rating (FSR) of A- (Excellent) and issuer credit ratings (ICR) of “a-” of the property/casualty subsidiaries of Maiden Holdings, Ltd. (Maiden Holdings) (Hamilton, Bermuda) [NASDAQ: MHLD] also known as Maiden Group (Maiden). Concurrently, A.M. Best has affirmed the ICR of “bbb-” of Maiden Holdings.

Additionally, A.M. Best has affirmed the ICR and senior debt ratings of “bbb-” of Maiden Holdings North America, Ltd. (Maiden NA) (Delaware), a direct, wholly owned subsidiary of Maiden Holdings. Maiden NA’s senior notes are fully and unconditionally guaranteed by Maiden Holdings. At the same time, A.M. Best has assigned indicative ratings of “bbb-” to senior debt, “bb+” to subordinated debt, “bb” to junior subordinated debt and “bb” to preferred stock of the recently filed shelf registration of Maiden Holdings and Maiden NA. The outlook for all ratings is stable. (See below for a detailed list of the companies and ratings.)

The ratings of Maiden reflect its consistently profitable underwriting and operating performance along with its solid risk-adjusted capitalization, in part due to capital contributions from Maiden Holdings and the operational benefits that Maiden derives as a quota share partner with AmTrust Financial Services, Inc.’s (AFSI) Bermuda reinsurance subsidiary, AmTrust International Insurance, Ltd., (AII) and American Capital Acquisition Corporation (ACAC).

Partially offsetting these positive rating factors are the execution risk faced by Maiden in achieving its business plans and integrating newer business, as well as the continuing competitive environment in its core reinsurance markets.

Maiden Holdings’ adjusted debt-to-total capital of 26.9% and adjusted debt-to-total tangible capital of 29.6% at March 31, 2012, were within A.M. Best’s guidelines at the company’s current ratings. In addition, Maiden Holdings’ interest coverage ratio remains adequate for its ratings.

Key rating factors that may lead to positive rating actions include the organization producing operating results that exceed its peers for an extended period of time along with the strengthening of the group’s risk-adjusted capitalization. However, factors that may lead to negative rating actions include a trend of increasingly deteriorating underwriting and operating performance to a level below its peers or an erosion of surplus to an extent to cause a significant decline in risk-adjusted capitalization.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,678.70 +6.10 0.03%
S&P 500 2,057.09 +5.27 0.26%
NASDAQ 4,771.7630 +13.8840 0.29%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs