Maiden Holdings, Ltd. (Maiden Holdings), a Bermuda-based holding company, reported a net loss of $201.0 million for 2024, compared to a net loss of $38.6 million in 2023. This significant increase stemmed primarily from an underwriting loss of $197.4 million, driven by $154.4 million in adverse prior-year reserve development, largely from the AmTrust Reinsurance segment. Non-GAAP book value decreased by 52.4% to $1.52 per common share, while GAAP book value fell by 81.5% to $0.46 per share. The company's alternative investment portfolio decreased by 18.6% due to sales and redemptions, resulting in a 3.5% net return for 2024 compared to 8.0% in 2023.
During 2024, Maiden Holdings completed a strategic review of its International Insurance Services (IIS) business, leading to the divestment of its Swedish subsidiaries, Maiden LF and Maiden GF, and the termination of its IIS business. The company entered into two Renewal Rights and Asset Purchase Agreements with AmTrust Nordic AB and a Stock Purchase Agreement to sell Maiden LF and Maiden GF. These transactions, along with the run-off of its Genesis Legacy Solutions (GLS) platform, reflect a strategic shift away from previous operations. On December 29, 2024, Maiden Holdings entered into a combination agreement with Kestrel Group LLC, aiming to create a new publicly listed specialty program group. This transaction values Kestrel at up to $167.5 million and is expected to close in the first half of 2025.
The company's current operations consist of two reportable segments: Diversified Reinsurance and AmTrust Reinsurance. The Diversified Reinsurance segment focuses on property and casualty reinsurance in Europe, while the AmTrust Reinsurance segment comprises run-off business ceded by AmTrust Financial Services, Inc. Net premiums written increased to $33.1 million in 2024 from $23.2 million in 2023, primarily due to growth in Credit Life programs within the Diversified Reinsurance segment. However, the AmTrust Reinsurance segment experienced a decrease in net premiums earned due to the run-off of its contracts. The company also repurchased 1,871,755 common shares during 2024, but suspended its share repurchase program in connection with the Kestrel transaction.
Maiden Holdings' principal operating subsidiaries include Maiden Reinsurance (licensed in Vermont), Maiden NA (a U.S. holding company), Maiden Global (a U.K. insurance services company), and GLS (in run-off). As of December 31, 2024, Maiden Holdings employed approximately 42 full-time and part-time employees, although this number is expected to decrease following the sale of Maiden LF and Maiden GF. The company is subject to various regulations in Bermuda, the U.S., the U.K., and Sweden, including risk-based capital guidelines and holding company regulations. The company does not currently have a financial strength rating from major rating agencies.
The company's 2024 financial developments highlight a significant decrease in non-GAAP and GAAP book value, driven by adverse loss development. The company's outlook is tied to the successful completion of the Kestrel transaction, which is subject to various closing conditions, including shareholder and regulatory approvals. The company acknowledges numerous risks, including those related to loss reserve development, reinsurance recovery, liquidity, investment performance, and regulatory compliance. The company does not anticipate paying cash dividends in the foreseeable future.
About Maiden Holdings, Ltd.
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