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Maiden Holdings, Ltd. Announces Fourth Quarter 2015 Operating Earnings(1) of $26.4 Million or $0.34 Per Diluted Common Share and Net Income Attributable to Common Shareholders of $24.7 Million or $0.32 Per Diluted Common Share

Highlights for the quarter ended December 31, 2015

  • Net operating earnings(1) of $26.4 million, or $0.34 per diluted common share compared with net operating earnings of $34.6 million, or $0.44 per diluted common share in the fourth quarter of 2014;
  • Annualized operating return on common equity(1) of 11.8% compared to 15.1% in the fourth quarter of 2014;
  • Net income attributable to Maiden common shareholders of $24.7 million or $0.32 per diluted common share compared with net income of $27.5 million, or $0.36 per diluted common share in the fourth quarter of 2014;
  • Gross premiums written decreased 12.7% to $525.9 million compared to the fourth quarter of 2014;
  • Net premiums written decreased 18.9% to $488.4 million compared to the fourth quarter of 2014;
  • Written and earned premiums were lower by $65.4 million and $23.9 million, respectively, as a result of a mutually agreed commutation with AmTrust;
  • Combined ratio(11) of 99.9% compared to 98.6% in the fourth quarter of 2014;
  • Net investment income was $34.8 million, an increase of 9.7% compared to the fourth quarter of 2014; and
  • In November, Maiden completed a public offering of $165 million of its 7.125% Non-Cumulative Series C Preference Shares.

Highlights for the year ended December 31, 2015

  • Net operating earnings(1) of $107.2 million, or $1.39 per diluted common share compared with net operating earnings of $117.7 million, or $1.53 per diluted common share in the year ended December 31, 2014;
  • Annualized operating return on common equity(1) of 12.0% compared to 13.6% in the year ended December 31, 2014;
  • Net income attributable to Maiden common shareholders of $100.1 million or $1.31 per diluted common share compared with $77.1 million, or $1.04 per diluted common share in the year ended December 31, 2014;
  • Gross premiums written increased 6.2% to $2.7 billion compared to the year ended December 31, 2014;
  • Net premiums written increased 2.3% to $2.5 billion compared to the twelve months ended December 31, 2014;
  • Combined ratio(11) of 99.3% compared to 98.0% in the year ended December 31, 2014;
  • Net investment income was $131.1 million, an increase of 11.8% compared to the twelve months ended December 31, 2014; and
  • Book value per common share(4) of $11.77 at December 31, 2015 decreased 7.2% versus December 31, 2014.

HAMILTON, Bermuda, Feb. 22, 2016 (GLOBE NEWSWIRE) -- Maiden Holdings, Ltd. (NASDAQ:MHLD) (“Maiden” or “the Company”) today reported fourth quarter 2015 net operating earnings(1) of $26.4 million compared with $34.6 million in the fourth quarter of 2014. Net income attributable to Maiden common shareholders in the fourth quarter of 2015 was $24.7 million compared to net income attributable to Maiden common shareholders of $27.5 million in the fourth quarter of 2014.

Commenting on the Company's results, Art Raschbaum, Chief Executive Officer of Maiden, said: “Maiden generated an operating return on common equity of 11.8% and 12.0% in the fourth quarter and full year 2015, respectively. We believe that 2015 further validates the strength of our unique low volatility strategy as we absorbed adverse commercial auto results in our Diversified Reinsurance segment but continued to generate overall profitable underwriting results along with relatively strong operating returns and income. While we experienced revenue headwinds in our Diversified Reinsurance segment, we have set the stage for profitable expansion of this business in 2016 and beyond with our Solvency II capital solutions business in Europe, our growing customer base in the U.S., and the expansion of our IIS OEM branded insurance business. Significantly, AmTrust continues to perform well, with continued growth and profitable underwriting. We remain focused on disciplined underwriting while leveraging our unique competitive advantages.”

Results for the quarter ended December 31, 2015
Maiden reported fourth quarter 2015 net operating earnings(1) of $26.4 million, or $0.34 per diluted common share compared with $34.6 million, or $0.44 per diluted common share in the fourth quarter of 2014. Net income attributable to common shareholders was $24.7 million or $0.32 per diluted common share compared with $27.5 million or $0.36 per diluted common share in the fourth quarter of 2014.

In the fourth quarter of 2015, gross premiums written decreased 12.7% to $525.9 million from $602.1 million in the fourth quarter of 2014. The Diversified Reinsurance segment’s gross premiums written totaled $145.6 million, a decrease of 13.7% versus the fourth quarter of 2014. Within the Diversified Reinsurance segment, premiums continued to be impacted by the loss of a large U.S. client that was acquired in early 2015. In the AmTrust Reinsurance segment gross premiums written fell by 12.3% to $380.3 million compared to the fourth quarter of 2014. Consistent with Maiden’s philosophy of supporting those lines of business within its underwriting focus and capabilities, a mutual agreement was reached effective on December 31, 2015 to commute the related outstanding liabilities associated with certain classes and lines of business which were ceded over the normal course and to exclude these transactions prospectively. This commutation resulted in a modest reduction of the AmTrust Reinsurance segment written and earned premiums for the fourth quarter and year ended December 31, 2015. Without the commutation, premiums ceded from AmTrust would have grown 3% in the quarter ended December 31, 2015, as compared to the same period in 2014. Overall, absent the one-time adjustment, Maiden’s fourth quarter decline in gross written premiums would have been 1.8%.

Net premiums written totaled $488.4 million in the fourth quarter of 2015, a decrease of 18.9% compared to the fourth quarter of 2014. The net written premium change is affected by the initial purchase of a corporate retrocessional contract in 2015 and the effect of the fourth quarter commutation.

Net premiums earned of $583.8 million decreased 4.0% compared to the fourth quarter of 2014. In the Diversified Reinsurance segment, net premiums earned decreased 20.4% to $174.2 million compared to the fourth quarter of 2014. The AmTrust Reinsurance segment net earned premiums were up 5.2% to $409.6 million compared to the fourth quarter of 2014.

Net loss and loss adjustment expenses of $397.1 million were up 0.3% compared to the fourth quarter of 2014 reflecting a continued higher loss ratio in the Diversified Reinsurance segment and a slightly higher loss ratio in the AmTrust segment.

The loss ratio(7) of 67.8% was higher than the 64.8% reported in the fourth quarter of 2014.

Commission and other acquisition expenses, including general and administrative expenses, decreased 8.8% to $188.4 million in the fourth quarter of 2015, compared to the same quarter a year ago. The total expense ratio(10) decreased to 32.1% for the fourth quarter of 2015 compared with 33.8% in the same quarter last year, reflecting variations in business mix from one period to another. General and administrative expenses for the fourth quarter of 2015 totaled $15.9 million compared with $17.0 million in the fourth quarter of 2014. The general and administrative expense ratio(9) was 2.7% in the fourth quarter of 2015 compared to 2.8% in the fourth quarter of 2014.

The combined ratio(11) for the fourth quarter of 2015 totaled 99.9% compared with 98.6% in the fourth quarter of 2014. The Diversified Reinsurance segment combined ratio was 103.9% in the fourth quarter of 2015, up from 99.2% in the fourth quarter of 2014. The Diversified Reinsurance segment combined ratio primarily reflects a higher booking ratio in Maiden’s U.S. underwriting portfolio and a significantly lower level of commercial auto adverse loss reserve development than in prior quarters. The AmTrust Reinsurance segment reported a combined ratio of 95.8% in the fourth quarter of 2015 compared to 94.9% in the fourth quarter of 2014.

Net investment income of $34.8 million in the fourth quarter of 2015 increased 9.7% compared to the fourth quarter of 2014. As of December 31, 2015, the average yield on the fixed income portfolio (excluding cash) is 3.46% with an average duration of 5.06 years. Cash and cash equivalents were $332.5 million at December 31, 2015 or $60.0 million lower than at year-end 2014.

Total assets increased 10.6% to $5.7 billion at December 31, 2015 compared to $5.2 billion at year-end 2014. Shareholders' equity was $1.3 billion, up 8.6% compared to December 31, 2014. Book value per common share was $11.77 at December 31, 2015 or 7.2% lower than at December 31, 2014.

During the fourth quarter of 2015, the Board of Directors declared dividends of $0.14 per common share, $0.515625 per Series A preference share and $0.90625 per Series B preference share.

Results for the year ended December 31, 2015
Net operating earnings(1) for the year ended December 31, 2015 were $107.2 million, or $1.39 per diluted common share compared with $117.7 million, or $1.53 per diluted common share in the year ended December 31, 2014. Net income attributable to Maiden common shareholders was $100.1 million compared to net income attributable to Maiden common shareholders of $77.1 million in the year ended December 31, 2014. In the first quarter of 2014, net income was impacted by a non-recurring non-cash charge of $28.2 million, representing the accelerated amortization of both the original issue discount and issuance costs associated with the TRUPs.

In the year ended December 31, 2015, gross premiums written totaled $2.7 billion, an increase of 6.2% compared to the year ended December 31, 2014. Gross premiums written in the Diversified Reinsurance segment totaled $776.9 million, a decrease of 13.5% versus the year ended December 31, 2014. In the AmTrust Quota Share Reinsurance segment, gross premiums written increased by 17.1% to $1.9 billion compared to the year ended December 31, 2014. Absent the fourth quarter commutation, 2015 gross premiums written for the AmTrust Reinsurance segment increased by 21.2% compared to the year ended December 31, 2014 and Maiden gross written premiums grew by 8.8%.

In the year ended December 31, 2015, net premiums written totaled $2.5 billion, an increase of 2.3% compared to the year ended December 31, 2014. Net premiums in 2015 are also affected by the retrocessional program which became effective January 1, 2015.

Net premiums earned of $2.4 billion increased 7.9% compared to the year ended December 31, 2014. Net premiums earned decreased 12.8% in the Diversified Reinsurance segment to $744.9 million compared to the year ended December 31, 2014. The AmTrust Quota Share Reinsurance segment net premiums earned were up 22.2% to $1.7 billion compared to the year ended December 31, 2014.

The loss ratio(7) of 66.9% was higher than the 66.1% reported for the year ended December 31, 2014.

Commission and other acquisition expenses, including general and administrative expenses, increased 9.3% to $789.1 million in the year ended December 31, 2015 versus the comparable period a year ago, while the total expense ratio(10) rose to 32.4% for the year ended December 31, 2015 compared with 31.9% in the same period last year. The increase in loss ratios and commission and other acquisition ratios resulted from a higher proportion of quota share business in 2015 compared to 2014. General and administrative expenses for the year ended December 31, 2015 totaled $64.9 million compared with $62.6 million in the year ended December 31, 2014. The general and administrative expense ratio(9) decreased to 2.7% in the year ended December 31, 2015 versus 2.8% in 2014.

The combined ratio(11) for the year ended December 31, 2015 totaled 99.3% compared with 98.0% in the year ended December 31, 2014. The Diversified Reinsurance segment had a combined ratio of 103.3% in the year ended December 31, 2015 compared to 98.3% in the year ended December 31, 2014, largely driven by adverse development in commercial auto reserves. The AmTrust Quota Share Reinsurance segment reported a combined ratio of 95.3% in the year ended December 31, 2015 compared to 95.4% in 2014.

Net investment income of $131.1 million in the year ended December 31, 2015 increased 11.8% compared to 2014.

(1)(4) Please see the Non-GAAP Financial Measures table for additional information on these non-GAAP financial measures and reconciliation of these measures to GAAP measures.

(7)(9)(10)(11) Loss ratio, general and administrative expense ratio, expense ratio and combined ratio are operating metrics. Please see the additional information on these measures under Segment information tables.

Conference Call
Maiden’s Chief Executive Officer, Art Raschbaum and Chief Financial Officer, Karen Schmitt will review these results tomorrow morning via teleconference and live audio webcast beginning at 8:30 a.m. ET.

To participate in the conference call, please access one of the following at least five minutes prior to the start time:

U.S. Callers: 1.877.734.5373
Outside U.S. Callers: 1.973.200.3059
Passcode: 43708332
Webcast: http://www.maiden.bm/news_events

A replay of the conference call will be available beginning at 11:30 a.m. ET on February 23, 2016 through midnight on March 1, 2016. To listen to the replay, please dial toll free: 1.855.859.2056 (U.S. Callers) or toll: 1.404.537.3406 (callers outside the U.S.) and enter the Passcode: 43708332; or access http://www.maiden.bm/news_events

About Maiden Holdings, Ltd.
Maiden Holdings, Ltd. is a Bermuda-based holding company formed in 2007. Through its subsidiaries, which are each A- rated (excellent) by A.M. Best, the Company is focused on providing non-catastrophic, customized reinsurance products and services to small and mid-size insurance companies in the United States and Europe. As of December 31, 2015, Maiden had $5.7 billion in assets and shareholders' equity of $1.3 billion.

The Maiden Holdings, Ltd. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=5006

Forward Looking Statements
This release contains "forward-looking statements" which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The forward-looking statements are based on the Company's current expectations and beliefs concerning future developments and their potential effects on the Company. There can be no assurance that actual developments will be those anticipated by the Company. Actual results may differ materially from those projected as a result of significant risks and uncertainties, including non-receipt of the expected payments, changes in interest rates, effect of the performance of financial markets on investment income and fair values of investments, developments of claims and the effect on loss reserves, accuracy in projecting loss reserves, the impact of competition and pricing environments, changes in the demand for the Company's products, the effect of general economic conditions and unusual frequency of storm activity, adverse state and federal legislation, regulations and regulatory investigations into industry practices, developments relating to existing agreements, heightened competition, changes in pricing environments, and changes in asset valuations. Additional information about these risks and uncertainties, as well as others that may cause actual results to differ materially from those projected is contained in Item 1A. Risk Factors in the Company's Annual Report on Form 10-K for the year ended December 31, 2014 as updated in periodic filings with the SEC. The Company undertakes no obligation to publicly update any forward-looking statements, except as may be required by law.

Maiden Holdings, Ltd.
Balance Sheet
(in thousands (000's), except per share data)
December 31, 2015
(Unaudited)
December 31, 2014
(Audited)
Assets
Fixed maturities, available-for-sale, at fair value (Amortized cost 2015: $3,562,864; 2014: $3,379,864) $ 3,508,088 $ 3,456,904
Fixed maturities, held-to-maturity, at amortized cost (Fair value 2015: $598,975; 2014: $0) 607,843 -
Other investments, at fair value (Cost 2015: $10,816; 2014: $10,862) 11,812 12,571
Total investments 4,127,743 3,469,475
Cash and cash equivalents 89,641 108,119
Restricted cash and cash equivalents 242,859 284,381
Accrued investment income 32,288 27,524
Reinsurance balances receivable, net 377,318 512,996
Reinsurance recoverable on unpaid losses 71,248 75,873
Loan to related party 167,975 167,975
Deferred commission and other acquisition expenses, net 397,548 372,487
Goodwill and intangible assets, net 81,920 87,336
Other assets 125,105 57,926
Total Assets $ 5,713,645 $ 5,164,092
Liabilities and Equity
Liabilities
Reserve for loss and loss adjustment expenses $ 2,510,101 $ 2,271,292
Unearned premiums 1,354,572 1,207,757
Accrued expenses and other liabilities 139,873 83,877
Senior notes 360,000 360,000
Total Liabilities 4,364,546 3,922,926
Equity
Preference Shares 480,000 315,000
Common shares 747 739
Additional paid-in capital 579,178 578,445
Accumulated other comprehensive income (23,767) 95,293
Retained earnings 316,184 255,084
Treasury shares, at cost (4,521) (3,867)
Total Maiden Shareholders’ Equity 1,347,821 1,240,694
Noncontrolling interest in subsidiaries 1,278 472
Total Equity 1,349,099 1,241,166
Total Liabilities and Equity $ 5,713,645 $ 5,164,092
Book value per common share(4) $ 11.77 $ 12.69
Common shares outstanding 73,721,140 72,932,702


Maiden Holdings, Ltd.
Income Statement
(in thousands (000's), except per share data)
(Unaudited)
For the Three
Months Ended
December 31, 2015
For the Three
Months Ended
December 31, 2014
For the Twelve
Months Ended
December 31, 2015
For the Twelve
Months Ended
December 31, 2014
Revenues:
Gross premiums written$ 525,890 $ 602,101 $ 2,662,825 $ 2,507,352
Net premiums written$ 488,362 $ 601,868 $ 2,514,116 $ 2,458,136
Change in unearned premiums 95,448 6,307 (85,047) (206,393)
Net premiums earned 583,810 608,175 2,429,069 2,251,743
Other insurance revenue 2,104 2,983 11,512 13,410
Net investment income 34,832 31,746 131,092 117,215
Net realized gains on investment 171 188 2,498 1,163
Total other-than-temporary impairment losses - (1,175) (1,060) (2,364)
Portion of loss recognized in other comprehensive income (loss) - - - -
Net impairment losses recognized in earnings - (1,175) (1,060) (2,364)
Total revenues 620,917 641,917 2,573,111 2,381,167
Expenses:
Net loss and loss adjustment expenses 397,065 395,955 1,633,570 1,498,271
Commission and other acquisition expenses 172,519 189,585 724,197 659,315
General and administrative expenses 15,921 16,998 64,872 62,558
Total expenses 585,505 602,538 2,422,639 2,220,144
Income from operations(2) 35,412 39,379 150,472 161,023
Other expenses
Interest and amortization expenses (7,267) (7,267) (29,063) (29,959)
Accelerated amortization of junior subordinated debt discount and issuance cost - - - (28,240)
Amortization of intangible assets (710) (819) (2,840) (3,277)
Foreign exchange and other gains 3,691 2,595 7,753 4,150
Total other expenses (4,286) (5,491) (24,150) (57,326)
Income before income taxes 31,126 33,888 126,322 103,697
Income tax expense 402 257 2,038 2,164
Net income 30,724 33,631 124,284 101,533
Add (less): loss (income) attributable to noncontrolling interest 76 (33) 192 (142)
Net income attributable to Maiden 30,800 33,598 124,476 101,391
Dividends on preference shares(6) (6,084) (6,084) (24,337) (24,337)
Net income attributable to Maiden common shareholders$ 24,716 $ 27,514 $ 100,139 $ 77,054
Net operating earnings attributable to Maiden common shareholders(1)$ 26,399 $ 34,627 $ 107,190 $ 117,702
Basic earnings per common share attributable to Maiden shareholders$ 0.34 $ 0.38 $ 1.36 $ 1.06
Diluted earnings per common share attributable to Maiden shareholders$ 0.32 $ 0.36 $ 1.31 $ 1.04
Basic operating earnings per common share attributable to Maiden shareholders$ 0.36 $ 0.47 $ 1.46 $ 1.61
Diluted operating earnings per common share attributable to Maiden shareholders$ 0.34 $ 0.44 $ 1.39 $ 1.53
Dividends declared per common share$ 0.14 $ 0.13 $ 0.53 $ 0.46
Weighted average number of common shares - basic 73,699,754 72,915,980 73,478,544 72,843,782
Adjusted weighted average number of common shares and assumed conversions - diluted 85,815,793 84,982,895 85,638,235 84,836,051
Net loss and loss adjustment expense ratio(7) 67.8% 64.8% 66.9% 66.1%
Commission and other acquisition expense ratio(8) 29.4% 31.0% 29.7% 29.1%
General and administrative expense ratio(9) 2.7% 2.8% 2.7% 2.8%
Expense ratio(10) 32.1% 33.8% 32.4% 31.9%
Combined ratio(11) 99.9% 98.6% 99.3% 98.0%
Annualized return on common equity 11.1% 12.0% 11.2% 8.9%
Annualized operating return on common equity(1) 11.8% 15.1% 12.0% 13.6%

Maiden Holdings, Ltd.
Non - GAAP Financial Measure
(in thousands (000's), except per share data)
(Unaudited)
For the Three Months Ended December 31, 2015 For the Three Months Ended December 31, 2014 For the Twelve Months Ended December 31, 2015 For the Twelve Months Ended December 31, 2014
Reconciliation of net income attributable to Maiden common shareholders to net operating earnings:
Net income attributable to Maiden common shareholders$ 24,716 $ 27,514 $ 100,139 $ 77,054
Add (subtract)
Net realized gains on investment (171) (188) (2,498) (1,163)
Net impairment losses recognized in earnings - 1,175 1,060 2,364
Foreign exchange and other gains (3,691) (2,595) (7,753) (4,150)
Amortization of intangible assets 710 819 2,840 3,277
Divested excess and surplus "E&S" business and NGHC run-off 4,545 7,612 12,241 10,427
Interest expense incurred related to 7.75% senior notes prior to actual redemption of the junior subordinated debt - - - 492
Accelerated amortization of junior subordinated debt discount and issuance cost - - - 28,240
Non-cash deferred tax expense 290 290 1,161 1,161
Net operating earnings attributable to Maiden common shareholders(1)$ 26,399 $ 34,627 $ 107,190 $ 117,702
Operating earnings per common share attributable to Maiden shareholders:
Basic earnings per common share attributable to Maiden shareholders$ 0.36 $ 0.47 $ 1.46 $ 1.61
Diluted earnings per common share attributable to Maiden shareholders$ 0.34 $ 0.44 $ 1.39 $ 1.53
Reconciliation of net income attributable to Maiden to income from operations:
Net income attributable to Maiden $ 30,800 $ 33,598 $ 124,476 $ 101,391
Add (subtract)
Foreign exchange and other gains (3,691) (2,595) (7,753) (4,150)
Amortization of intangible assets 710 819 2,840 3,277
Interest and amortization expenses 7,267 7,267 29,063 29,959
Accelerated amortization of junior subordinated debt discount and issuance cost - - - 28,240
Income tax expense 402 257 2,038 2,164
(Loss) income attributable to noncontrolling interest (76) 33 (192) 142
Income from operations(2)$ 35,412 $ 39,379 $ 150,472 $ 161,023
December 31, 2015 December 31, 2014
Investable assets:
Total investments$ 4,127,743 $ 3,469,475
Cash and cash equivalents 89,641 108,119
Restricted cash and cash equivalents 242,859 284,381
Loan to related party 167,975 167,975
Total investable assets(3)$ 4,628,218 $ 4,029,950
December 31, 2015 December 31, 2014
Capital:
Preference shares$ 480,000 $ 315,000
Common shareholders' equity 867,821 925,694
Total Maiden shareholders' equity 1,347,821 1,240,694
2011 Senior Notes 107,500 107,500
2012 Senior Notes 100,000 100,000
2013 Senior Notes 152,500 152,500
Total capital resources(5)$ 1,707,821 $ 1,600,694
(1) Net operating earnings and operating return on average common equity are non-GAAP financial measures. Net operating earnings is defined by the Company as net income attributable to Maiden common shareholders excluding realized and unrealized investment gains and losses, net impairment losses recognized in earnings, foreign exchange and other gains and losses, amortization of intangible assets, divested excess and surplus business and NGHC run-off, interest expense incurred related to 7.75% senior notes prior to actual redemption of the junior subordinated debt, accelerated amortization of junior subordinated debt discount and issuance cost and non-cash deferred tax expense and should not be considered as an alternative to net income. The Company's management believes that net operating earnings is a useful indicator of trends in the Company's underlying operations. The Company's measure of net operating earnings may not be comparable to similarly titled measures used by other companies. Management uses operating return on average common shareholders' equity as a measure of profitability that focuses on the return to Maiden common shareholders. It is calculated using operating earnings available to common shareholders divided by average Maiden common shareholders' equity.
(2) Income from Operations is a non-GAAP financial measure defined by the Company as net income attributable to Maiden excluding foreign exchange and other gains and losses, amortization of intangible assets, interest and amortization expenses, accelerated amortization of junior subordinated debt discount and issuance cost, income tax expense and income or loss attributable to noncontrolling interest and should not be considered as an alternative to net income. The Company’s management believes that income from operations is a useful measure of the Company’s underlying earnings fundamentals based on its underwriting and investment income before financing costs. This income from operations enables readers of this information to more clearly understand the essential operating results of the Company. The Company’s measure of income from operations may not be comparable to similarly titled measures used by other companies.
(3) Investable assets is the total of the Company's investments, cash and cash equivalents and loan to a related party.
(4) Book value per common share is calculated using common shareholders’ equity (shareholders' equity excluding the aggregate liquidation value of our preference shares) divided by the number of common shares outstanding.
(5) Total capital resources is the sum of the Company's debt and Maiden shareholders' equity.
(6) Dividends on preference shares consist of $3,094 and $12,376 paid to Preference Shares - Series A and $2,990 and $11,961 paid to Preference shares - Series B, during the three and twelve months ended December 31, 2015 and 2014, respectively.


Maiden Holdings, Ltd.
Supplemental Financial Data - Segment Information
(in thousands (000's))
(Unaudited)
For the Three Months Ended December 31, 2015 Diversified Reinsurance AmTrust Reinsurance Other Total
Gross premiums written $ 145,558 $ 380,332 $ - $ 525,890
Net premiums written $ 132,088 $ 356,274 $ - $ 488,362
Net premiums earned $ 174,181 $ 409,628 $ 1 $ 583,810
Other insurance revenue 2,104 - - 2,104
Net loss and loss adjustment expenses (129,450) (263,056) (4,559) (397,065)
Commissions and other acquisition expenses (43,960) (128,572) 13 (172,519)
General and administrative expenses (9,813) (686) - (10,499)
Underwriting (loss) income $ (6,938) $ 17,314 $ (4,545) $ 5,831
Reconciliation to net income
Net investment income and realized gains on investment 35,003
Interest and amortization expenses (7,267)
Amortization of intangible assets (710)
Foreign exchange and other gains 3,691
Other general and administrative expenses (5,422)
Income tax expense (402)
Net income $ 30,724
Net loss and loss adjustment expense ratio(7) 73.4% 64.2% 67.8%
Commission and other acquisition expense ratio(8) 24.9% 31.4% 29.4%
General and administrative expense ratio(9) 5.6% 0.2% 2.7%
Combined ratio(11) 103.9% 95.8% 99.9%
For the Three Months Ended December 31, 2014 Diversified Reinsurance AmTrust Reinsurance Other Total
Gross premiums written $ 168,594 $ 433,528 $ (21) $ 602,101
Net premiums written $ 168,359 $ 433,528 $ (19) $ 601,868
Net premiums earned $ 218,775 $ 389,414 $ (14) $ 608,175
Other insurance revenue 2,983 - - 2,983
Net loss and loss adjustment expenses (140,442) (248,144) (7,369) (395,955)
Commissions and other acquisition expenses (68,861) (120,672) (52) (189,585)
General and administrative expenses (10,754) (686) (177) (11,617)
Underwriting income (loss) $ 1,701 $ 19,912 $ (7,612) $ 14,001
Reconciliation to net income
Net investment income and realized gains on investment 31,934
Net impairment losses recognized in earnings (1,175)
Interest and amortization expenses (7,267)
Amortization of intangible assets (819)
Foreign exchange and other gains 2,595
Other general and administrative expenses (5,381)
Income tax expense (257)
Net income $ 33,631
Net loss and loss adjustment expense ratio(7) 63.3% 63.7% 64.8%
Commission and other acquisition expense ratio(8) 31.1% 31.0% 31.0%
General and administrative expense ratio(9) 4.8% 0.2% 2.8%
Combined ratio(11) 99.2% 94.9% 98.6%


Maiden Holdings, Ltd.
Supplemental Financial Data - Segment Information
(in thousands (000's))
(Unaudited)
For the Twelve Months Ended December 31, 2015 Diversified Reinsurance AmTrust Reinsurance Other Total
Gross premiums written $ 776,852 $ 1,885,974 $ (1) $ 2,662,825
Net premiums written $ 734,781 $ 1,779,334 $ 1 $ 2,514,116
Net premiums earned $ 744,875 $ 1,684,191 $ 3 $ 2,429,069
Other insurance revenue 11,512 - - 11,512
Net loss and loss adjustment expenses (547,296) (1,074,072) (12,202) (1,633,570)
Commissions and other acquisition expenses (196,292) (527,863) (42) (724,197)
General and administrative expenses (37,550) (2,947) - (40,497)
Underwriting (loss) income $ (24,751) $ 79,309 $ (12,241) $ 42,317
Reconciliation to net income
Net investment income and realized gains on investment 133,590
Net impairment losses recognized in earnings (1,060)
Interest and amortization expenses (29,063)
Amortization of intangible assets (2,840)
Foreign exchange and other gains 7,753
Other general and administrative expenses (24,375)
Income tax expense (2,038)
Net income $ 124,284
Net loss and loss adjustment expense ratio(7) 72.3% 63.8% 66.9%
Commission and other acquisition expense ratio(8) 26.0% 31.3% 29.7%
General and administrative expense ratio(9) 5.0% 0.2% 2.7%
Combined ratio(11) 103.3% 95.3% 99.3%
For the Twelve Months Ended December 31, 2014 Diversified Reinsurance AmTrust Reinsurance Other Total
Gross premiums written $ 897,748 $ 1,610,485 $ (881) $ 2,507,352
Net premiums written $ 850,049 $ 1,610,485 $ (2,398) $ 2,458,136
Net premiums earned $ 854,026 $ 1,378,327 $ 19,390 $ 2,251,743
Other insurance revenue 13,410 - - 13,410
Net loss and loss adjustment expenses (579,771) (893,502) (24,998) (1,498,271)
Commissions and other acquisition expenses (233,711) (418,908) (6,696) (659,315)
General and administrative expenses (38,858) (2,533) (757) (42,148)
Underwriting income (loss) $ 15,096 $ 63,384 $ (13,061) $ 65,419
Reconciliation to net income
Net investment income and realized gains on investment 118,378
Net impairment losses recognized in earnings (2,364)
Interest and amortization expenses (29,959)
Accelerated amortization of junior subordinated debt discount and issuance cost (28,240)
Amortization of intangible assets (3,277)
Foreign exchange and other gains 4,150
Other general and administrative expenses (20,410)
Income tax expense (2,164)
Net income $ 101,533
Net loss and loss adjustment expense ratio(7) 66.8% 64.8% 66.1%
Commission and other acquisition expense ratio(8) 26.9% 30.4% 29.1%
General and administrative expense ratio(9) 4.6% 0.2% 2.8%
Combined ratio(11) 98.3% 95.4% 98.0%
(7) Calculated by dividing net loss and loss adjustment expenses by the sum of net premiums earned and other insurance revenue.
(8) Calculated by dividing commission and other acquisition expenses by the sum of net premiums earned and other insurance revenue.
(9) Calculated by dividing general and administrative expenses by the sum of net premiums earned and other insurance revenue.
(10) Calculated by adding together the commission and other acquisition expense ratio and general and administrative expense ratio.
(11) Calculated by adding together the net loss and loss adjustment expense ratio and expense ratio.

CONTACT: Noah Fields, Vice President, Investor Relations Maiden Holdings, Ltd. Phone: 441.298.4927 E-mail: nfields@maiden.bm

Source: Maiden Holdings, Ltd.