14 November 2019News

Maiden reduces its Q3 net loss to $58m

Maiden Holdings made a net loss of $58.3 million in Q3, a considerable year-on-year improvement, with Q3 2018 having seen the company report a loss of $308.8 million.

Gross written premiums for the group were down to $35.8 million for Q3, from $484.5 million in Q3 2018, all of that coming from the reinsurance group. Of those, $14.4 million came in the diversified reinsurance segment, with $21.4 million from AmTrust reinsurance. Diversified reinsurance generated gross written premiums of $31.7 million in Q3 2018, while AmTrust generated $452.8 million.

Maiden’s combined ratio was 190.8 percent in Q3, compared to 150.8 percent in the same period in 2018. The combined ratio of diversified reinsurance was 107.7 percent, while AmTrust’s ratio was 205.5 percent. The figures for the same period last year were 107.6 percent and 150.4 percent, respectively.

Lawrence Metz, Maiden’s president and CEO, said: “While more work remains, we believe these are all positive steps for Maiden.”

Patrick Haveron, Maiden’s CFO and COO, added: “Our recently completed LPT/ ADC Agreement with Enstar is having the tempering effect it was designed to have as we continue to de-risk our balance sheet and transition away from the reserve volatility of the last two years.”

Haveron admitted Maiden’s Q3 results “reflect the continuing challenges in certain lines of business, such as general liability and commercial auto liability, the latter which has plagued the industry for an extended period.”

This adverse development is being offset in part by continuing favorable development in workers’ compensation, he said. “We continue to closely monitor and respond to continued observed volatility and unfavorable emergence in those liability lines.”