Maiden remains in the red after 2018 net loss
Maiden Holdings has reported a fourth quarter 2018 net loss of $269.2 million, down again on the net loss of $133.6 million it made in the same quarter of 2017.
The non-GAAP operating loss came to $212.4 million, compared with a non-GAAP operating loss of $126.4 million in the fourth quarter of 2017.
The quarter’s results contributed to Maiden’s net loss of $570.3 million in 2018, another fall on the net loss of $199.1 million that it reported in 2017. The non-GAAP operating loss for 2018 was $471.6 million compared with a non-GAAP operating loss of $169.6 million in 2017.
Gross premiums written were $2.02 billion in 2018 compared to $2.08 billion in 2017 as declines in the AmTrust Reinsurance segment were offset by modest increases in the diversified reinsurance segment from the company’s international business. Net premiums written totalled $2.01 billion in 2018 compared to $2.04 billion in 2017. Net premiums earned were $2.03 billion in 2018 compared to $1.99 billion in 2017.
Commenting on the company’s results, Maiden’s president and chief executive officer, Lawrence F. Metz said, “We recognise that 2018 was an extremely difficult year for all of our shareholders and dedicated employees. With our recently announced revised LPT/ADC transaction with Enstar, we believe we are nearing the end of our strategic review process. Since our third quarter report we have continued to take decisive action, completing the sale of our US reinsurance business to Enstar, mutually agreeing with AmTrust to first amend and then terminate our quota share reinsurance contracts effective January 1, 2019, completing the sale of certain of our European subsidiaries, and entering into a new LPT/ADC agreement with Enstar. We look forward to now taking the necessary steps to enhance our business and create lasting shareholder value.”
Patrick J. Haveron, Maiden’s chief financial officer and chief operating officer added, “Since September 1, 2018 the series of strategic measures we have implemented have materially de-risked our balance sheet, improved liquidity, significantly strengthened our capital position relative to regulatory requirements, and cured our breach of the Bermuda Enhanced Capital Requirement. Looking ahead, we have also reduced our annual total operating expenses by more than $50 million and look to improve on that to reflect the significant changes in our business during 2018 and 2019. The new LPT/ADC with Enstar will further solidify the progress we have made by protecting our reserves while retaining more assets for investment. Maiden enters 2019 with a stronger balance sheet and we expect to further improve our solvency ratios as we look to rebuild shareholder value and begin re-positioning our business for the future.”
