Maiden returned to profitability in 2020 following the losses of 2019, with the run-off of its reinsurance portfolios contributing to its turnaround for the full year and the final quarter of 2020.
Maiden reported net profit of $80 million for the full year in 2020, a healthy improvement on the $131.9 million loss reported in 2019. For the fourth quarter of 2020 it reported a net profit of $47.7 million, turning around a $21.5 million net loss in the same period of 2019.
Maiden reported gross written premiums of $31.4 million for the full year 2020, compared to a loss of $528.6 million for 2019, resulting from parts of the business being in run off. For Q4 2020 gross written premiums increased to $11.2 million, compared to negative $5.4 million in Q4 2019.
Maiden noted that it has discontinued reporting its combined ratio. “As the run-off of its reinsurance portfolios progresses, such ratios are increasingly not meaningful and of less value to readers as they evaluate our financial results,” it said.
Lawrence Metz, Maiden’s president and co-chief executive officer, said: “The results of the partial tender of our preference shares during the fourth quarter contributed to the increase in book value at December 31, 2020, which has more than tripled in the last year.”
Maiden’s newly formed Genesis Legacy Solutions platform is beginning to build its pipeline, Metz added, and is set to contribute positively to results in 2021 and beyond.
Patrick Haveron, Maiden’s co-chief executive officer and chief financial officer, said: "The run-off of our insurance liabilities continues in line with our expectations and 2020 produced overall favorable development. These positive indicators are tempered by the knowledge that certain longer-tail segments still require further seasoning.”
Maiden, Results, Lawrence Metz, Patrick Haveron