Maiden results dented by casualty losses

Maiden Holdings has reported that its net income for the first three months of 2017 came to $20.5 million, a decrease from the $27.2 million it posted for the same period of 2016 largely due to casualty losses.

Maiden said that total expenses rose from $614 million in the first quarter of 2016 to $720 million in the same quarter of 2017. Much of the increase came from a net loss and loss adjusted expenses figure of $480.6 million in the first quarter of 2017, up on the $403.6 million it reported for the first three months of 2016.

The company said that its gross premiums written increased 6.9 percent to $923.4 million compared to the first quarter of 2016, when gross written premiums totaled $864.1 million.

“Notwithstanding a challenging operating environment, Maiden's results improved significantly from the company's fourth quarter 2016 underwriting loss,” commented Maiden CEO Art Raschbaum. “While the aggregate combined ratio for the quarter was 100.9 percent, it reflects the impact of more conservative initial expected loss ratios for the AmTrust master quota share as well as higher than anticipated losses in the quarter from select casualty lines.

“Gross revenues increased by 6.9 percent across our two operating segments while investment income also reflected strong year-on-year growth of 16.1 percent. We believe that we are well positioned to continue to further strengthen returns for the balance of the year while continuing to implement new business initiatives across the company.”