Maiden Holdings has reported a third quarter net loss of $3.1 million, down from a $2.2 million income in the prior year quarter.
The company’s net income attributable to common shareholders was boosted by a $6 million gain from a repurchase of preference shares.
A Q3 underwriting loss of $3.6 million compares to an underwriting income of $3.4 million in 2020.
This underwriting loss has been attributed to a prior year loss development of $5.4 million compared to favorable prior year loss development of $7.2 million during the prior year quarter.
The company says this was a result of quota share reinsurance agreements with AmTrust, or the AmTrust Reinsurance segment; and partially offset by a current accident year basis underwriting loss of $9 million.
Q3 net investment income of $7.5 million compares to $12.7 million for the same period in 2020.
Commenting on the results, Maiden Co-Chief Executive Officers Patrick J. Haveron and Lawrence F. Metz, said, “Our continuing capital management activities added another $0.07 in book value during the third quarter and brings the total increase in book value since commencing these initiatives in the fourth quarter of 2020 to $1.45 per common share.
“Along with other continuing favourable trends in prior loss development, 2021 continues to advance on a very positive note.”
The co-CEOs added that the run-off of their insurance liabilities remains consistent with expectations and that progress in managing expenses continues to be made.
“Maiden is well positioned heading into the fourth quarter,” the pair added. “Our Genesis Legacy Solutions unit has completed its first transaction, an LPT/ADC agreement, and its pipeline for current transactions is robust.
“In addition to Genesis, our continuing investment at a steady pace across a range of asset classes, including private equity and credit, real estate and venture capital is expected to produce results in the fourth quarter and beyond as we increasingly deploy both legs of our strategy.
“As our earnings and strategy develop further, we are closely evaluating our ability to recognize the tax assets not reflected on our balance sheet today.”
