Maiden profits dip, despite investment income increase
Bermuda-based reinsurance firm Maiden Holdings has reported a dip in its net income for the first quarter of the year, despite an increase in its investment income.
The company’s profit was down to $27.2 million, compared with $32.4 million in the first quarter of 2015.
Despite this fall, Maiden’s gross written premiums (GWP) increased 3.6 percent in the quarter to $864.1 million, compared with the first quarter of 2015.
Its net investment income was also up an impressive 28.5 percent to $36.3 million in the quarter, compared with the first quarter of 2015.
The diversified reinsurance segment’s GWP totalled $315.8 million, an increase of 3.4 percent versus the first quarter of 2015. The gross premium increase in the diversified reinsurance segment resulted from a combination of organic growth in the US and new premiums from business development initiatives in Europe.
In the AmTrust reinsurance segment, GWP increased by 3.7 percent to $548.3 million, compared with the first quarter of 2015. The AmTrust reinsurance segment growth rate was moderated by the commutation announced in the fourth quarter and the completion of AmTrust’s absorption of new business following the acquisition of Tower Group.
Maiden’s net operating earnings were also up to $28.3 million in the first quarter of 2016, compared with $26.6 million in the prior-year quarter.
Its combined ratio did slightly falter however, to 98.9 percent in the first quarter of the year, compared to 98.2 percent in the first quarter of 2015.
Maiden also experienced loss and loss adjustment expenses of $403.6 million, up 6.9 percent compared with the first quarter of 2015.
The loss ratio of 65 percent was slightly higher than the 64.8 percent reported in the first quarter of 2015.
Commission and other acquisition expenses increased 9.4 percent to $195.1 million in the first quarter of 2016, compared with the same quarter a year ago.
The expense ratio increased to 33.9 percent for the first quarter of 2016, compared with 33.4 percent in the same quarter last year, reflecting changes in business mix.
“While the reinsurance market remains highly competitive, Maiden continues to focus on disciplined organic growth with existing clients and implementation of new business initiatives in the US and Europe,” said Art Raschbaum, chief executive officer of Maiden.
He added: “In the quarter we benefited from continued strong investment income, profitable underwriting and lower expense relativities. Maiden’s gross premiums written grew by 3.6 percent versus the first quarter of 2015 with continued prospects for disciplined growth for the balance of the year.”