Maiden Holdings, Ltd. Announces Record 2013 Annual Net Income Attributable To Common Shareholders Of $87.9 Million And Return On Common Equity Of 10.5% And Record 2013 Annual Net Operating Earnings(1) Of $87.5 Million And Operating Return On Common Equity(1) Of 10.5%
Highlights for the quarter ended December 31, 2013
- Annualized operating return on common equity (1) of 11.3% compared to (4.6)% in the fourth quarter of 2012, which was impacted by Superstorm Sandy;
- Record net operating earnings (1) of $23.3 million, or $0.30 per diluted common share compared with a loss of $10.1 million, or $0.14 per diluted common share in the fourth quarter of 2012;
- Net premiums written increased 0.7% to $445.9 million for the fourth quarter of 2013 versus the same period last year; excluding the divested property E&S business and National General Quota Share, the underlying growth rate was 21.6%;
- Combined ratio (11) of 97.3% compared to 103.7% in the fourth quarter of 2012;
- Net investment income was $25.4 million, an increase of 20.2% compared to the fourth quarter of 2012;
- Book value per common share (4) of $11.14, down 1.8% versus September 30, 2013 reflecting unrealized bond value movements in the quarter;
- In October, Maiden issued $165 million of 7.25% mandatory convertible preference shares to support the continuing growth of its reinsurance business; and
- In November, Maiden issued $152.5 million of 7.75% senior notes due December 1, 2043 in order to pre-fund the repurchase of the Company's previously outstanding 14% coupon trust preferred securities, which it completed on January 15, 2014.
Highlights for the year ended December 31, 2013
- Annualized operating return on common equity (1) of 10.5% compared to 5.9% in 2012;
- Record net operating earnings (1) of $87.5 million, or $1.18 per diluted common share compared with $48.5 million, or $0.66 per diluted common share in 2012;
- Net premiums written increased 10.3% to $2.1 billion from $1.9 billion the same period last year; excluding the divested property E&S business and National General Quota Share, the underlying growth rate was 21.9%;
- Combined ratio (11) of 97.5% compared to 99.5% in 2012;
- Net investment income was $91.4 million, an increase of 12.5% compared to 2012; and
- Total investments increased 20.8% in 2013 to $3.2 billion.
HAMILTON, Bermuda, Feb. 19, 2014 (GLOBE NEWSWIRE) -- Maiden Holdings, Ltd. (Nasdaq:MHLD) ("Maiden" or "the Company") today reported fourth quarter 2013 net operating earnings (1) of $23.3 million, or $0.30 per diluted common share compared with a loss of $10.1 million, or $0.14 per diluted common share in the fourth quarter of 2012. Net income attributable to Maiden common shareholders totaled $20.8 million, or $0.27 per diluted common share in the fourth quarter of 2013, compared to a net loss attributable to Maiden common shareholders of $10.3 million or $0.14 per share in the fourth quarter of 2012.Commenting on the Company's results, Art Raschbaum, Chief Executive Officer of Maiden, said: "The strong operating results in the fourth quarter and throughout 2013 reflect a focus on continued underwriting discipline, a significant level of organic growth despite the termination of the NGHC quota share, and steady growth in invested assets. We are gratified by the continued growth in new client relationships as well as the expansion of many existing client relationships, a testament to the Maiden team's strong client focus. Importantly, we believe that Maiden is well positioned for future growth and profitability after completing two strategic capital market transactions in the fourth quarter, as well as the repurchase of all of our outstanding 14% TRUPs in January 2014, which significantly decreases our forward cost of capital in 2014 and beyond. Continued growth in invested assets, a lower cost of capital, the Company's continued focus on operating efficiency and underwriting discipline, and a highly differentiated business model should enable us to further enhance operating performance in 2014 and beyond. The entire Maiden team looks forward to meeting the challenges of 2014 with an emphasis on continuing to provide outstanding support for our clients, while delivering value to our shareholders."
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