Maiden explores strategic options
Maiden Holdings’ board of directors has retained BofA Merrill Lynch to assist the company in evaluating strategic alternatives to enhance the value of the enterprise.
The move comes after Bermuda-based Maiden reported a net loss of $199.1 million for the full year of 2017 compared to a net income of $15.2 million in 2016. For the fourth quarter of 2017 the reinsurer reported a net loss of $133.6 million compared to a net loss of $74.7 million in the same period of 2016.
The combined ratio of the AmTrust Reinsurance segment deteriorated to 131.1 percent in the fourth quarter of 2017 from 108.1 percent in the same period of 2016. The segment experienced adverse loss development of $139.0 million due primarily to workers' compensation and general liability lines of business and, to a lesser extent, commercial auto liability.
Overall, reserves for loss and loss adjustment expenses increased to $3.55 billion in 2017 from $2.90 billion in 2016.
Maiden CEO Art Raschbaum commented on the firm’s performance by saying that he believes that Maiden had taken “significant steps” to strengthen reserves for losses which will help to accelerate a return to profitability in 2018 and beyond. Reserve actions in the fourth quarter reflect “a more aggressive response” to observed development in the quarter and throughout the year on the AmTrust Reinsurance segment as well as the diversified segment, he noted.
In March 2018, AM Best downgraded Maiden’s rating outlook due to “a decline in balance sheet strength and the potential that continuation of recent underwriting and operating trends could lead to negative action on the rating”.
AM Best views Maiden’s new announcement to retain BofA Merrill Lynch as a step in the process of reviewing strategic options, but the rating agency added that should management determine that specific action will be taken, it will evaluate the ratings impact of that decision.
Maiden Holdings focuses on providing non-catastrophic, customized reinsurance products and services to small and mid-size insurance companies in the US and Europe.
Join us at Intelligent Automation in Insurance - April 26th 2018, London: Book now.
More of today's news
Chubb CEO Greenberg sees “tremendous opportunity” in middle market, SMEs
Insurtech M&A deal volume triples in Asia
XL Catlin partners with insurtech Praedicat for emerging casualty risks
Sompo bolsters US operations with AIG and AXIS hires
Munich Re-backed insurtech Wrisk expands leadership team
Already registered?
Login to your account
If you don't have a login or your access has expired, you will need to purchase a subscription to gain access to this article, including all our online content.
For more information on individual annual subscriptions for full paid access and corporate subscription options please contact us.
To request a FREE 2-week trial subscription, please signup.
NOTE - this can take up to 48hrs to be approved.
For multi-user price options, or to check if your company has an existing subscription that we can add you to for FREE, please email Elliot Field at efield@newtonmedia.co.uk or Adrian Tapping at atapping@newtonmedia.co.uk
Editor's picks
Editor's picks
More articles
Copyright © intelligentinsurer.com 2024 | Headless Content Management with Blaze