Attached files
| file | filename |
|---|---|
| 8-K - Maiden Holdings, Ltd. | v200982_8k.htm |
| EX-99.2 - Maiden Holdings, Ltd. | v200982_ex99-2.htm |
November
4, 2010
Maiden
Holdings, Ltd. Reports Third Quarter Net Income of
$18.5Million
and Operating Earnings(1) of
$18.1 Million
Book
Value of $10.52 per Share Up 9.4%Since Year-End 2009
Third
Quarter 2010 Financial Highlights
|
·
|
Net
income of $18.5 million up 23.6%from third quarter 2009; EPS of
$0.26
|
|
·
|
Net
operating earnings(1)
of $18.1 million up 9.7% from $16.5 million in third quarter of 2009;
Operating EPS(1)
of $0.26
|
|
·
|
Income
from operations(2)
totaled $28.3 million up 10.7% from third quarter
2009
|
|
·
|
Net
earned premium of $309.6 million increased 30.4%from third quarter of
2009
|
|
·
|
Net
investment income of $17.5 million up 4.3% from third quarter
2009
|
|
·
|
Annualized
return on equity of 9.9% and operating return on equity(1)
of 9.7%
|
|
·
|
Combined
ratio of 97.0%compared with 96.3% in the third quarter of
2009
|
|
·
|
Total
assets of $2.8billion and investable assets of $2.2 billion increasedover
7.5% from year end 2009
|
|
·
|
Shareholders’
equity of $758.4 million increased 12.1% from year-end
2009
|
|
·
|
GMAC
International Insurance Services, Ltd. transaction expected to close by
end of November
|
HAMILTON,
Bermuda - Maiden Holdings, Ltd. (Nasdaq: MHLD) today reported third
quarter 2010 net income of $18.5 million, up 23.6% from $15.0 million in the
third quarter of 2009. Earnings per diluted share of $0.26 increased 23.8% from
$0.21 in the third quarter of 2009. Operating earnings(1) for
the quarter totaled $18.1 million, or $0.26 per diluted share, compared with
$16.5 million, or $0.23 per diluted share in the third quarter of
2009.
For the
first nine months of 2010, net income totaled $50.7 million, up 14.4% from the
first nine months of 2009. Earnings per diluted share of $0.72 increased 14.3%
from $0.63 in the first nine months of 2009. Operating earnings(1) for
the first nine months of 2010 of $55.5 million, or $0.79 per diluted share,
compared with $47.3 million, or $0.68 per diluted share in the first nine months
of 2009.
"Our
third quarter results reflect continued solid growth in earnings and book value
despite an increasingly competitive underwritingenvironment,” said Art
Raschbaum, President and CEO of Maiden Holdings, Ltd. “Maiden continuesto
benefit from growth tied to our strategic relationships as we maintain
ourvalue-added long-term relationship focus and disciplined approach to
underwriting. We also remain firmlycommitted topreserving our high-quality
balancesheet even in the face of the challenging investment
environment.”
(more)
Page 2 of
4
Raschbaum
added, “We look forward to the additional diversification and benefits provided
by the pending GMAC International Insurance Services transaction which should
help drive continuedgrowth in assets, revenue, and earnings.The combination of
our disciplined approach and lower-volatility business model give us confidence
in our ability to continue to deliver long-term value for our
shareholders.”
Shareholders'
equity of $758.4 million grew 12.1% from year end 2009 and book value per share
increased9.4% to $10.52 from $9.62 at year end 2009.
The
company expects the proposed GMAC International Insurance Services, Inc.
transaction to close by the end of November.
Third
Quarter 2010 Results:
Net
written premium totaled $273.4 million compared with $221.4 million in the third
quarter of 2009. Net earned premium of $309.6 million increased 30.4% from
$237.4 million for the same period last year.
Net
investment income of $17.5 million grew 4.3%from $16.8 million in the third
quarter of 2009.
Loss and
loss adjustment expenses of $200.6 million rose $35.5 million from $165.1
million in the third quarter of 2009. Results reflected a loss ratio of 64.8%
compared with 69.6% for the same period a year ago.
Commission
and other acquisition expenses together with general and administrative expenses
of $99.8 million increased $36.4 million from the year ago quarter and reflected
a total expense ratio of 32.2%compared with 26.7%. General and administrative
expenses for the quarter totaled $10.8 million compared with $8.1 million in the
third quarter of 2009.
These
results reflected a general and administrative expense ratio of 3.5% compared to
3.4% in the third quarter of 2009.
The
combined ratio for the third quarter totaled 97.0% compared with 96.3% in the
third quarter of 2009.
Income
from operations(2)
of $28.3 million increased $2.7 million, or 10.7%, from $25.6 million in the
third quarter of 2009.
Total
assets of $2.8 billion increased 7.6%from $2.6 billion atyear end 2009. Total
investable assets of $2.2 billion, which include total investments, cash,
restricted cash, cash equivalents and a loan to a related party, increased
$156.7 million from year end 2009. Shareholders' equity of $758.4 million rose
12.1% from $676.5 million at year end 2009.
During
the third quarter of 2010, the Board of Directors declared a dividend of $0.065
per share.
(more)
Page 3 of
4
2010
Year-to-Date Results:
Net
written premium of $897.8 million increased 12.7% from $796.3 million during the
first nine months of 2009. Net earned premium of $857.3 million grew $186.0
million, or 27.7%, from $671.3 million for the same period last
year.
Net
investment income of $54.0 million increased 16.9% from $46.2 million in the
first ninemonths of 2009.
Loss and
loss adjustment expenses of $546.3 million rose $83.8 million from $462.5
million in the first nine months of 2009. Results reflected a loss ratio of
63.7% compared with 68.9% for the same period a year ago.
Commission
and other acquisition expenses together with general and administrative expenses
of $283.7 million increased $101.3million from the first nine months of last
year and reflected a total expense ratio of 33.1% compared with 27.2%. General
and administrative expenses for the period totaled $28.9 million compared with
$22.7 million. These results reflected a general and administrative expense
ratio of 3.4%which remained in line withthe first nine months of
2009.
The
combined ratio totaled 96.8% compared with 96.1% in the first nine months of
2009.
Income
from operations(2) of
$83.8 million increased $11.6 million, or 16.1%, from $72.2 million in the first
ninemonths of 2009.
(1)(2)Please
see the Non-GAAP Financial Measures table at the end of this release for
additional information on these non-GAAP financial measures and reconciliation
of these measures to GAAP measures.
Conference
Call
Maiden
CEO Art Raschbaum and CFO John Marshaleck will review these results via
teleconference and live audio webcast beginning at 10:00 a.m. AT (9:00 a.m.
ET). To participate please access one of the following no later than
9:55 a.m. AT (8:55 a.m. ET):
1.877.734.5373
for U.S. callers
1.
973.200.3059 for callers outside the U.S.
Webcast: http://www.maiden.bm/presentations_conferences
A
replay of the conference call will be available beginning at 1:00 p.m. AT (12:00
p.m. ET), November 4, 2010 through midnight on November 11 2010. To listen to
the replay please dial toll free: 1.800.642.1687 (U.S. callers) or toll
1.706.645.9291 (callers outside the U.S.) and enter the Passcode: 19061229; or
access
http://www.maiden.bm/presentations_conferences.
(more)
Page 4 of
4
Maiden
Holdings, Ltd.
Ellen
Taylor
856.359.2573
irelations@maiden.bm
About
Maiden Holdings, Ltd.
Maiden
Holdings, Ltd. is a Bermuda-based holding company formed in 2007. Through our
subsidiaries which are each A- rated (excellent) by A.M. Best, we are 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
June 30, 2010, the company had $2.8billion in assets and shareholders' equity of
$725million.
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
including statements relating to the pending GMAC International Insurance
Services transaction. 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, 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, 2009
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.
MHLD-G
|
Balance
Sheet
|
||||||||
|
(in thousands
(000's), except per share data)
|
||||||||
|
9/30/2010
(Unaudited)
|
12/31/2009
(Audited)
|
|||||||
|
Assets
|
||||||||
|
Fixed
maturities, available-for-sale, at fair value (amortized cost $1,505,431;
$1,623,382)
|
$ | 1,582,372 | $ | 1,661,692 | ||||
|
Other
investments, at fair value (cost $5,534; $5,684)
|
5,531 | 5,549 | ||||||
|
Total
investments
|
1,587,903 | 1,667,241 | ||||||
|
Cash
and cash equivalents
|
269,486 | 107,396 | ||||||
|
Restricted
cash and cash equivalents
|
218,867 | 144,944 | ||||||
|
Accrued
investment income
|
11,335 | 11,405 | ||||||
|
Reinsurance
balances receivable, net
|
244,353 | 211,338 | ||||||
|
Prepaid
reinsurance
|
31,575 | 28,752 | ||||||
|
Losses
recoverable on unpaid losses
|
6,000 | 11,984 | ||||||
|
Loan
to related party
|
167,975 | 167,975 | ||||||
|
Deferred
commission and other acquisition costs
|
187,241 | 172,983 | ||||||
|
Other
assets
|
15,290 | 11,818 | ||||||
|
Intangible
assets, net
|
46,928 | 51,284 | ||||||
|
Goodwill
|
52,617 | 52,617 | ||||||
|
Total
Assets
|
2,839,570 | 2,639,737 | ||||||
|
Liabilities
and Shareholders’ Equity
|
||||||||
|
Liabilities
|
||||||||
|
Reserve
for loss and loss adjustment expenses
|
1,093,857 | 1,006,320 | ||||||
|
Unearned
premiums
|
628,232 | 583,478 | ||||||
|
Accrued
expenses and other liabilities
|
74,265 | 62,887 | ||||||
|
Securities
sold under agreements to repurchase, at contract value
|
69,674 | 95,401 | ||||||
|
Junior
subordinated debt
|
215,173 | 215,125 | ||||||
|
Total
Liabilities
|
2,081,201 | 1,963,211 | ||||||
|
Shareholders’
Equity:
|
||||||||
|
Common
shares
|
731 | 713 | ||||||
|
Additional
paid-in capital
|
576,813 | 576,086 | ||||||
|
Accumulated
other comprehensive income
|
76,938 | 32,747 | ||||||
|
Retained
earnings
|
107,688 | 70,781 | ||||||
|
Treasury
stock, at cost
|
(3,801 | ) | (3,801 | ) | ||||
|
Total
Shareholders’ Equity
|
758,369 | 676,526 | ||||||
|
Total
Liabilities and Shareholders’ Equity
|
2,839,570 | 2,639,737 | ||||||
|
Book
value per share
|
10.52 | 9.62 | ||||||
|
Common
shares outstanding
|
72,105,694 | 70,291,289 | ||||||
|
Maiden
Holdings, Ltd.
|
||||||||||||||||
|
Income
Statement
|
||||||||||||||||
|
(in
thousands (000's), except per share data)
|
||||||||||||||||
|
(Unaudited)
|
||||||||||||||||
|
For
the Three Months Ended September 30, 2010
|
For
the Three Months Ended September 30, 2009
|
For
the Nine Months Ended September 30, 2010
|
For
the Nine Months Ended September 30, 2009
|
|||||||||||||
|
Revenues:
|
||||||||||||||||
|
Gross
premiums written
|
$ | 289,815 | $ | 221,400 | $ | 951,981 | $ | 796,304 | ||||||||
|
Net
premiums written
|
$ | 273,435 | $ | 221,400 | $ | 897,776 | $ | 796,304 | ||||||||
|
Change
in unearned premiums
|
36,158 | 15,950 | (40,470 | ) | (125,021 | ) | ||||||||||
|
Net
earned premium
|
309,593 | 237,350 | 857,306 | 671,283 | ||||||||||||
|
Net
investment income
|
17,500 | 16,778 | 53,956 | 46,150 | ||||||||||||
|
Net
realized and unrealized investment gains (losses)
|
1,627 | (66 | ) | 2,474 | (462 | ) | ||||||||||
|
Total
revenues
|
328,720 | 254,062 | 913,736 | 716,971 | ||||||||||||
|
Expenses:
|
||||||||||||||||
|
Net
loss and loss adjustment expenses
|
200,625 | 165,123 | 546,264 | 462,468 | ||||||||||||
|
Commission
and other acquisition expenses
|
88,956 | 55,313 | 254,799 | 159,608 | ||||||||||||
|
General
and administrative expenses
|
10,840 | 8,059 | 28,876 | 22,726 | ||||||||||||
|
Total
expenses
|
300,421 | 228,495 | 829,939 | 644,802 | ||||||||||||
|
Income
from operations (2)
|
28,299 | 25,567 | 83,797 | 72,169 | ||||||||||||
|
Other
expense
|
||||||||||||||||
|
Amortization
of intangible assets
|
(1,452 | ) | (1,676 | ) | (4,356 | ) | (4,915 | ) | ||||||||
|
Foreign
exchange and other gains (losses)
|
1,187 | 210 | (380 | ) | 2,401 | |||||||||||
|
Subordinated
debt interest expense
|
(9,117 | ) | (9,114 | ) | (27,348 | ) | (25,316 | ) | ||||||||
| (9,382 | ) | (10,580 | ) | (32,084 | ) | (27,830 | ) | |||||||||
|
Income
before income taxes
|
18,917 | 14,987 | 51,713 | 44,339 | ||||||||||||
|
Income
taxes:
|
||||||||||||||||
|
Current
tax expense
|
100 | - | 100 | - | ||||||||||||
|
Deferred
tax expense
|
291 | - | 881 | - | ||||||||||||
|
Income
tax expense
|
391 | - | 981 | - | ||||||||||||
|
Net
income
|
$ | 18,526 | $ | 14,987 | $ | 50,732 | $ | 44,339 | ||||||||
|
Operating
earnings (1)
|
$ | 18,118 | $ | 16,519 | $ | 55,519 | $ | 47,315 | ||||||||
|
Basic
earnings per common share
|
$ | 0.26 | $ | 0.21 | $ | 0.72 | $ | 0.64 | ||||||||
|
Diluted
earnings per common share
|
$ | 0.26 | $ | 0.21 | $ | 0.72 | $ | 0.63 | ||||||||
|
Basic
operating earnings per common share
|
$ | 0.26 | $ | 0.24 | $ | 0.79 | $ | 0.68 | ||||||||
|
Diluted
operating earnings per common share
|
$ | 0.26 | $ | 0.23 | $ | 0.79 | $ | 0.68 | ||||||||
|
Dividends
declared per common share
|
$ | 0.065 | $ | 0.06 | $ | 0.195 | $ | 0.18 | ||||||||
|
Weighted
average number of basic shares outstanding
|
70,493,545 | 70,287,664 | 70,359,688 | 69,430,521 | ||||||||||||
|
Weighted
average number of diluted shares outstanding
|
70,985,382 | 70,852,895 | 70,843,462 | 69,846,714 | ||||||||||||
|
Net
Loss and loss adjustment expense ratio
|
64.8 | % | 69.6 | % | 63.7 | % | 68.9 | % | ||||||||
|
Commission
and other acquisition expense ratio
|
28.7 | % | 23.3 | % | 29.7 | % | 23.8 | % | ||||||||
|
General and
administrative expense ratio
|
3.5 | % | 3.4 | % | 3.4 | % | 3.4 | % | ||||||||
|
Combined
ratio
|
97.0 | % | 96.3 | % | 96.8 | % | 96.1 | % | ||||||||
|
Annualized
return on equity
|
9.9 | % | 9.4 | % | 9.5 | % | 10.1 | % | ||||||||
|
Annualized
return on equity on operating earnings
|
9.7 | % | 10.3 | % | 10.3 | % | 10.8 | % | ||||||||
Maiden
Holdings, Ltd.
Non
- GAAP Financial Measure
(in
thousands (000's), except per share data)
(Unaudited)
|
For
the Three Months Ended September 30, 2010
|
For
the Three Months Ended September 30, 2009
|
For
the Nine Months Ended September 30, 2010
|
For
the Nine Months Ended September 30, 2009
|
|||||||||||||
|
Reconciliation
of net income to net operating earnings:
|
||||||||||||||||
|
Net
income
|
$ | 18,526 | $ | 14,987 | $ | 50,732 | $ | 44,339 | ||||||||
|
Add
(subtract)
|
||||||||||||||||
|
Net
realized and unrealized investment (gains) losses
|
(1,627 | ) | 66 | (2,474 | ) | 462 | ||||||||||
|
Foreign
exchange and other (gains) losses
|
(1,187 | ) | (210 | ) | 380 | (2,401 | ) | |||||||||
|
Amortization
of intangible assets
|
1,452 | 1,676 | 4,356 | 4,915 | ||||||||||||
|
Non-recurring
general and administrative expenses relating to acquisition of GMAC
International Insurance
|
563 | - | 1,544 | - | ||||||||||||
|
Income
tax expense
|
391 | - | 981 | - | ||||||||||||
|
Operating
earnings (1)
|
$ | 18,118 | $ | 16,519 | $ | 55,519 | $ | 47,315 | ||||||||
|
Operating
earnings per common share:
|
||||||||||||||||
|
Basic earnings
per share
|
$ | 0.26 | $ | 0.24 | $ | 0.79 | $ | 0.68 | ||||||||
|
Diluted
earnings per share
|
$ | 0.26 | $ | 0.23 | $ | 0.79 | $ | 0.68 | ||||||||
|
Reconciliation
of net income to income from operations:
|
||||||||||||||||
|
Net
income
|
$ | 18,526 | $ | 14,987 | $ | 50,732 | $ | 44,339 | ||||||||
|
Add
(subtract)
|
||||||||||||||||
|
Foreign
exchange and other (gains) losses
|
(1,187 | ) | (210 | ) | 380 | (2,401 | ) | |||||||||
|
Amortization
of intangible assets
|
1,452 | 1,676 | 4,356 | 4,915 | ||||||||||||
|
Subordinated
debt interest expense
|
9,117 | 9,114 | 27,348 | 25,316 | ||||||||||||
|
Income
tax expense
|
391 | - | 981 | - | ||||||||||||
|
Income
from operations (2)
|
$ | 28,299 | $ | 25,567 | $ | 83,797 | $ | 72,169 | ||||||||
|
(1)
Net operating earnings is a non-GAAP financial measure defined by the
Company as net income excluding realized investment gains and losses,
foreign exchange and other gains and losses, amortization of intangible
assets, non-recurring general and administrative expenses relating to
acquisition, and income 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.
|
||||||||||||||||
|
(2)
Income from Operations is a non-GAAP financial measure defined by the
Company as net income excluding foreign exchange and other gains and
losses, amortization of intangible assets, subordinated debt interest
expense and income tax expense 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.
|
||||||||||||||||
Maiden
Holdings, Ltd.
Supplemental
Financial Data - Segment Information
(in
thousands (000's))
(Unaudited)
|
|
|
|
||||||||||||||
|
For
the Three Months Ended September 30, 2010
|
Diversified
Reinsurance
|
AmTrust
Quota Share
|
ACAC
Quota Share
|
Total
|
||||||||||||
|
Net
premiums written
|
$ | 104,452 | $ | 110,313 | $ | 58,670 | $ | 273,435 | ||||||||
|
Net
premiums earned
|
142,419 | 120,747 | 46,427 | 309,593 | ||||||||||||
|
Net
losses and loss expenses
|
(95,409 | ) | (76,199 | ) | (29,017 | ) | (200,625 | ) | ||||||||
|
Commissions
and other acquisition costs
|
(34,228 | ) | (39,011 | ) | (15,717 | ) | (88,956 | ) | ||||||||
|
General
and administrative expenses
|
(6,745 | ) | (220 | ) | (124 | ) | (7,089 | ) | ||||||||
|
Underwriting
income
|
$ | 6,037 | $ | 5,317 | $ | 1,569 | $ | 12,923 | ||||||||
|
Reconciliation
to net income
|
||||||||||||||||
|
Net
investment income and realized and unrealized investment gains
(losses)
|
19,127 | |||||||||||||||
|
Amortization
of intangible assets
|
(1,452 | ) | ||||||||||||||
|
Foreign
exchange gains
|
1,187 | |||||||||||||||
|
Subordinated
debt interest expense
|
(9,117 | ) | ||||||||||||||
|
Other
operating expenses
|
(3,751 | ) | ||||||||||||||
|
Net
Income before income taxes
|
$ | 18,917 | ||||||||||||||
|
Net
loss and loss expense ratio*
|
67.0 | % | 63.1 | % | 62.5 | % | 64.8 | % | ||||||||
|
Acquisition
cost ratio**
|
24.0 | % | 32.3 | % | 33.9 | % | 28.7 | % | ||||||||
|
General
and administrative expense ratio***
|
4.8 | % | 0.2 | % | 0.2 | % | 3.5 | % | ||||||||
|
Combined
ratio****
|
95.8 | % | 95.6 | % | 96.6 | % | 97.0 | % | ||||||||
|
For
the Three Months Ended September 30, 2009
|
Diversified
Reinsurance
|
AmTrust
Quota Share
|
ACAC
Quota Share
|
Total
|
||||||||||||
|
Net
premiums written
|
$ | 129,232 | $ | 92,168 | $ | - | $ | 221,400 | ||||||||
|
Net
premiums earned
|
147,876 | 89,474 | - | 237,350 | ||||||||||||
|
Net
losses and loss expenses
|
(110,420 | ) | (54,703 | ) | - | (165,123 | ) | |||||||||
|
Commissions
and other acquisition costs
|
(26,062 | ) | (29,251 | ) | - | (55,313 | ) | |||||||||
|
General
and administrative expenses
|
(3,785 | ) | (812 | ) | - | (4,597 | ) | |||||||||
|
Underwriting
income
|
$ | 7,609 | $ | 4,708 | $ | - | $ | 12,317 | ||||||||
|
Reconciliation
to net income
|
||||||||||||||||
|
Net
investment income and realized investment gains (losses)
|
16,712 | |||||||||||||||
|
Amortization
of intangible assets
|
(1,676 | ) | ||||||||||||||
|
Foreign
exchange and other gains
|
210 | |||||||||||||||
|
Subordinated
debt interest expense
|
(9,114 | ) | ||||||||||||||
|
Other
operating expenses
|
(3,462 | ) | ||||||||||||||
|
Net
Income before income taxes
|
$ | 14,987 | ||||||||||||||
|
Net
loss and loss expense ratio*
|
74.7 | % | 61.1 | % | - | 69.6 | % | |||||||||
|
Acquisition
cost ratio**
|
17.6 | % | 32.7 | % | - | 23.3 | % | |||||||||
|
General
and administrative expense ratio***
|
2.6 | % | 0.9 | % | - | 3.4 | % | |||||||||
|
Combined
ratio****
|
94.9 | % | 94.7 | % | - | 96.3 | % | |||||||||
|
*
Calculated by dividing net losses and loss expenses by net earned
premium.
|
||||||||||||||||
|
** Calculated
by dividing commission and other acquisition expenses by net earned
premium
|
||||||||||||||||
|
***
Calculated by dividing general and administrative expenses by net earned
premium.
|
||||||||||||||||
|
****
Calculated by adding together net loss and loss expense ratio, acquisition
cost ratio and general and administrative expense ratio.
|
||||||||||||||||
|
Maiden
Holdings, Ltd.
|
||||||||||||||||
|
Supplemental
Financial Data - Segment Information
|
||||||||||||||||
|
(in
thousands (000's))
|
||||||||||||||||
|
(Unaudited)
|
||||||||||||||||
|
For
the Nine Months Ended September 30, 2010
|
Diversified
Reinsurance
|
AmTrust
Quota Share
|
ACAC
Quota Share
|
Total
|
||||||||||||
|
Net
premiums written
|
$
|
409,075
|
$
|
340,992
|
$
|
147,709
|
$
|
897,776
|
||||||||
|
Net
premiums earned
|
455,378
|
333,070
|
68,858
|
857,306
|
||||||||||||
|
Net
losses and loss expenses
|
(294,044)
|
(209,184)
|
(43,036)
|
(546,264)
|
||||||||||||
|
Commissions
and other acquisition costs
|
(123,128)
|
(108,249)
|
(23,422)
|
(254,799)
|
||||||||||||
|
General
and administrative expenses
|
(18,343)
|
(1,292)
|
(124)
|
(19,759)
|
||||||||||||
|
Underwriting
income
|
$
|
19,863
|
$
|
14,345
|
$
|
2,276
|
$
|
36,484
|
||||||||
|
Reconciliation
to net income
|
||||||||||||||||
|
Net
investment income and realized and unrealized investment gains
(losses)
|
56,430
|
|||||||||||||||
|
Amortization
of intangible assets
|
(4,356)
|
|||||||||||||||
|
Foreign
exchange losses
|
(380)
|
|||||||||||||||
|
Subordinated
debt interest expense
|
(27,348)
|
|||||||||||||||
|
Other
operating expenses
|
(9,117)
|
|||||||||||||||
|
|
||||||||||||||||
|
Net
Income before income taxes
|
$
|
51,713
|
||||||||||||||
|
Net
loss and loss expense ratio*
|
64.6%
|
62.8%
|
62.5%
|
63.7%
|
||||||||||||
|
Acquisition
cost ratio**
|
27.0%
|
32.5%
|
34.0%
|
29.7%
|
||||||||||||
|
General
and administrative expense ratio***
|
4.0%
|
0.4%
|
0.2%
|
3.4%
|
||||||||||||
|
Combined
ratio****
|
95.6%
|
95.7%
|
96.7%
|
96.8%
|
||||||||||||
|
For
the Nine Months Ended September 30, 2009
|
Diversified
Reinsurance
|
AmTrust
Quota Share
|
ACAC
Quota Share
|
Total
|
||||||||||||
|
Net
premiums written
|
$
|
528,963
|
$
|
267,341
|
$
|
-
|
$
|
796,304
|
||||||||
|
Net
premiums earned
|
401,761
|
269,522
|
-
|
671,283
|
||||||||||||
|
Net
losses and loss expenses
|
(294,005)
|
(168,463)
|
-
|
(462,468)
|
||||||||||||
|
Commissions
and other acquisition costs
|
(71,234)
|
(88,374)
|
-
|
(159,608)
|
||||||||||||
|
General
and administrative expenses
|
(13,599)
|
(1,873)
|
-
|
(15,472)
|
||||||||||||
|
Underwriting
income
|
$
|
22,923
|
$
|
10,812
|
$
|
-
|
$
|
33,735
|
||||||||
|
Reconciliation
to net income
|
||||||||||||||||
|
Net
investment income and realized investment gains (losses)
|
45,688
|
|||||||||||||||
|
Amortization
of intangible assets
|
(4,915)
|
|||||||||||||||
|
Foreign
exchange and other gains
|
2,401
|
|||||||||||||||
|
Subordinated
debt interest expense
|
(25,316)
|
|||||||||||||||
|
Other
operating expenses
|
(7,254)
|
|||||||||||||||
|
|
||||||||||||||||
|
Net
Income before income taxes
|
$
|
44,339
|
||||||||||||||
|
Net
loss and loss expense ratio*
|
73.2%
|
62.5%
|
-
|
68.9%
|
||||||||||||
|
Acquisition
cost ratio**
|
17.7%
|
32.8%
|
-
|
23.8%
|
||||||||||||
|
General
and administrative expense ratio***
|
3.4%
|
0.7%
|
-
|
3.4%
|
||||||||||||
|
Combined
ratio****
|
94.3%
|
96.0%
|
-
|
96.1%
|
||||||||||||
|
*
Calculated by dividing net losses and loss expenses by net earned
premium.
|
||||||||||||||||
|
** Calculated
by dividing commission and other acquisition expenses by net earned
premium
|
||||||||||||||||
|
***
Calculated by dividing general and administrative expenses by net earned
premium.
|
||||||||||||||||
|
****
Calculated by adding together net loss and loss expense ratio, acquisition
cost ratio and general and administrative expense ratio.
|
||||||||||||||||