AM Best downgrades Maiden Holdings ratings
Enstar Group subsidiary to buy Maiden Re North America
Maiden Holdings has reported net losses for the third quarter of 2018 after its AmTrust reinsurance segment saw adverse prior year loss development.
The net loss totalled $308.8 million in the third quarter, a significant fall from the net loss of $63.6 million it reported in the same quarter of 2017.
Net loss and loss adjustment expenses increased to $600.3 million compared to $370.8 million in the third quarter of 2017 due primarily to higher adverse prior year loss development for the AmTrust reinsurance segment.
The reinsurer experienced higher adverse prior year loss development of $210.4 million in the AmTrust reinsurance segment compared to $61.1 million in the same period in 2017.
According to the company the 2018 development was largely from workers compensation, which represented nearly half of the adverse development, and was primarily driven by accident years 2014 to 2017, and to a lesser extent, development in European hospital liability, commercial auto and general liability.
The announced sale of the US reinsurance treaty operations resulted in an impairment loss of $74.2 million as the company wrote off the remaining goodwill and intangible assets.
In addition Enstar Group is acquiring Maiden Reinsurance North America from a subsidiary of Maiden Holdings.
Maiden Re North America is a diversified insurance company domiciled in Missouri that provides property and casualty treaty reinsurance, casualty facultative reinsurance and accident and health treaty reinsurance.
The net consideration payable in the transactions is $307.5 million, subject to certain closing adjustments. Enstar will assume approximately $1.3 billion of net loss and loss adjustment expense reserves and unearned premium reserves upon closing.
Maiden Holdings, Q3, loss, Enstar, sale