Maiden’s profits soar despite ‘competitive operating environment’
Maiden Holdings, a Bermuda-based re/insurer, has reported a considerable increase in its profits in the second quarter of 2016 despite what Maiden’s chief executive officer (CEO) called a ‘competitive operating environment’ and continued pressure on investment yields.
Maiden made a net profit of $30.9 million compared with $20.5 million in the same period from the previous year.
Its gross written premiums (GWP) increased by 2.1 percent to $688.3 million compared with the second quarter of 2015 and its combined ratio improved slightly to 98.6 percent compared with 99.2 percent in the second quarter of 2015.
The company’s net investment income was 35.3 million compared with $35.2 million in the second quarter of 2015.
“The second quarter reflects a continued focus on disciplined growth, improving our cost of capital and delivering value to our regional and specialty insurer clients,” said Art Raschbaum, chief executive of Maiden.
“Notwithstanding a competitive operating environment and continued pressure on investment yields, our overall results reflect continued underwriting profitability and strong growth in book value while achieving an annualized return on common equity of 12.3 percent and an annualized operating return on common equity of 11.3 percent.
“This marks the 12th consecutive quarter of double digit operating returns. While revenue growth has moderated for our AmTrust Reinsurance segment versus a strong prior year quarter impacted by acquisitions, the diversified reinsurance segment growth continues to benefit primarily from the expansion of existing client relationships in the US and our developing European capital solutions business.
“Going forward, earnings should benefit from investment of our large quarter-end cash balance and continued implementation of key strategic initiatives in the US and Europe.”