Maiden Holdings has reported a first quarter net income attributable to shareholders of $71.7 million, boosted by a $62.5 million gain from the repurchase of preference shares.
Underwriting income for the quarter was $1.6 million compared to a loss of $3.7 million in the same period in 2020.
This underwriting income improvement was largely due to a favourable prior year loss development of $5.6 million.
Net premiums written for fell to a $2.7 million deficit compared to $10.4 million for the first quarter of 2020.
Net premiums written in the diversified reinsurance segment decreased by $10.6 million or 102.3% due to return of unearned premiums written in Maiden’sGerman Auto quota share reinsurance contract, which went into run-off on January of this year.
Due to premium adjustments, there was $2.5 million hit to net premiums written in the AmTrust Reinsurance segment during the quarter.
Meanwhile, net investment income decreased by $8.1 million, or 45.2%, due to the decline in average investable assets
Commenting on the first quarter of 2021 financial results, Lawrence F. Metz, Maiden’s President and Co-Chief Executive Officer said, “We have begun 2021 in a very positive fashion, as continued operating profitability and active capital management produced a strong first quarter result.
“Like the fourth quarter, continued favorable loss development trends during the quarter and positive investment results from our evolving alternative investment portfolio resulted in positive operating performance.
“After a successful partial tender offer of our preference shares in the fourth quarter of 2020, the strong increase in book value at March 31, 2021 was primarily the result of the repurchase of $165.4 million in preference shares during the first quarter.
“We continue to make progress in developing attractive opportunities in our Genesis Legacy Solutions unit and we anticipate our first transactions via Genesis soon.”
Patrick J. Haveron, Maiden’s Co-Chief Executive Officer and Chief Financial Officer added, “We continue to make strides in building common shareholder value through our active capital management strategy which we continue to deploy, and our Board has continued to support with its renewed preference share repurchase authorization.
“Several of the investments made in 2020 are already producing attractive returns which are benefiting shareholders currently, and the pipeline of actionable investment opportunities continues to be robust.”
