Maiden reports Q3 income plunge
Maiden Holdings has announced that it made a loss of $63.6 million in the third quarter of 2017, a substantial fall from the profit of $31.8 million that it made in the same period of 2016.
The company said that the quarter had seen a net negative impact from catastrophes of $20 million and that net adverse loss reserve development came to $77.7 million.
The losses in the quarter meant that Maiden also posted a $65.5 million loss for the first three quarters of the year, again down from the $90 million profit it posted for the first nine months of 2016.
Maiden also reported that gross premiums written over the third quarter decreased 10.7 percent from $707 million in the third quarter of 2016 to $631.0 million. However, gross written premiums for the first nine months of the year remained stable at $2.26 billion, the same figure as the first nine months of 2016.
Art Raschbaum, chief executive officer of Maiden said: "While results in the quarter were impacted by both catastrophe related loss activity and loss development primarily in the AmTrust Reinsurance segment, there were a number of favourable underlying trends which we believe will benefit future quarters. In the quarter we realized improved non-catastrophe operating performance in the US portion of our Diversified Reinsurance segment.
“Across all of the Diversified Reinsurance segment we enjoyed strong premium growth. Investment earnings and invested assets continue to grow and operating cash flow was strong. Maiden's common share count declined, reflecting share repurchases made during the quarter. Importantly, we believe that the actions we have taken to address historical loss reserve development while improving underlying business trends will benefit Maiden and our shareholders in the future."
