Losses continue at Maiden as it grapples with AmTrust fallout
Bermuda re/insurer Maiden Holdings made further losses in the second quarter of 2018 and its gross written premiums also dipped as it continues to grapple with the impact of the operational changes taking place in underlying claims associated with AmTrust, a significant part of the portfolio.
The company made a net loss of $5.9 million in the second quarter of 2018, an improvement on the loss of $22.4 million it made in the same period a year earlier. Its combined ratio was 106 percent, almost identical to the 105.8 percent it posted a year earlier.
In the first six months of 2018, the diversified reinsurance segment produced an underwriting loss of $1.2 million compared to a loss of $26.3 million in the same period of 2017.
Overall, the combined ratio of the group was 103.9 percent in the first six months of 2018 compared to 103.4 percent in the same period a year ago.
Its gross written premiums decreased to $654.2 million in the second quarter compared with $705.2 million in the same period a year earlier primarily due to a decline in premiums written in the Company’s AmTrust segment, the combination of market conditions and underwriting measures applied by AmTrust during the period, particularly in its workers’ compensation line of business.
Its stressed that these declines were partially offset by an increase in gross premiums in its diversified segment, which it said included new account growth and expansion of its client relationships in the segment’s US portfolio.
Art Raschbaum, its chief executive, said: “While we did experience continued loss development during the second quarter, our diversified combined ratios are significantly better in 2018 as compared to 2017, with much lower prior year adverse loss development.
“We continue to evaluate the impact of the operational changes taking place in the underlying claims for the AmTrust segment and believe we are taking a prudent course as more is learned and observed regarding these continuing changes.
“Revenue in the quarter reflected a continued moderation of premiums from our largest client, AmTrust, somewhat offset by increased premiums in the diversified segment. We remain committed to restoring underwriting profitability by maintaining disciplined underwriting and through our strategic review (which we discuss later in this release), enhancing shareholder value.”
