Maiden delay on annual report prompts AM Best scrutiny
Bermuda-based Maiden Holdings’ decision to delay the filing of the its 2016 annual report by up to 15 days has prompted AM Best to announce that it is monitoring the situation.
AM Best said it will consider further action should the 10-K report differ materially from what is anticipated or should the filing be delayed further.
Maiden’s management commented that it does not expect the financial results that will be published in its 10-K to differ from those published in its Feb. 27, 2017, news release.
In addition, the company’s auditor has not identified any material weaknesses in Maiden’s internal controls and management does not expect to disclose any such weaknesses in the 10-K filing.
Maiden Holdings which owns insurance subsidiaries providing specialty reinsurance products in property/casualty, reported net income for full year 2016 of $15.2 million, down 85 percent on the $100.1 million it made over the course of 2015.
The company has said that its 2016 results were substantially down on the previous year after it was hit by a $120 million reserve charge in the fourth quarter 2016, which it says was primarily derived from the commercial auto line of business in both of its reported operating segments.
The charge includes both a provision for adverse development realised during the fourth quarter, as well as a more conservative view of the ultimate exposures on commercial auto liability throughout the portfolio. Excluding the reserve charge, Maiden would have reported 2016 net income attributable to Maiden common shareholders of $135.7 million.
