Maiden posts it first quarterly profit in two years
Maiden Holdings has posted its first quarterly profit in two years, at a time when many of its peers have struggled to generate a profit.
Having re-domesticated Maiden Reinsurance from Bermuda to Vermont, Maiden reported net income of $20.9 million for Q1 2020, compared to a net loss of $36.6 million in the same period of 2019.
Meanwhile, it reported gross written premiums of $11.7 million in Q1. In Q1 2019 it reported a loss of $561.1 million, when its partial termination amendment resulted in Maiden Reinsurance returning approximately $648 million in unearned premium to AmTrust International Insurance.
Maiden said it was no longer publishing its combined ratio, arguing the number has little relevance as the run-off of its reinsurance portfolios progresses.
The re/insurer said government restrictions in the US, Bermuda and Europe had not substantially affected its operations, claiming its exposure to the COVID-19 pandemic is “immaterial”.
Lawrence Metz, Maiden’s president and co-chief executive officer said: "As our loss experience continues to moderate and we continue to reduce our operating expenses, we remain focused on sustaining and increasing Maiden’s profitability.”
Patrick Haveron, Maiden’s co-chief executive officer and chief financial officer, added: “Prior year loss experience was benign during the first quarter and while the loss development of our run-off portfolio will require further maturity to fully emerge, recent trends have been less adverse, although there is no guarantee these trends will persist.”
