Bermuda-based Maiden Holdings has reported a net loss of $11.3 million for the first quarter of 2023, including an operating loss of $7.9 million, owing to losses across its AmTrust Reinsurance and Diversified segments.
These figures compare with net income of $1.6 million for the first quarter of last year, and an operating loss of $6.9 million.
At the same time, Maiden has announced that Patrick J. Haveron has been appointed as its sole Chief Executive Officer and Lawrence F. Metz has named Executive Vice Chairman while remaining as Group President. Haveron will also continue as the company’s Chief Financial Officer.
The AmTrust Reinsurance segment reported an underwriting loss of $6.3 million in Q1 which was largely the result of adverse prior year loss development of $2.9 million as adverse development in Auto Liability and Specialty programs were the principal drivers of the results.
In addition, while smaller than last year, continuing negative premium adjustments from the runoff of Maiden’s terminated AmTrust reinsurance contracts contributed $3.9 million to the underwriting loss.
Maiden’s GLS unit also reported a small loss, largely reflecting adjustments to a previously recognized gain on acquisition of certain assets.
Net premiums written for Q1 2023 were $0.8 million compared to a negative result of $10.3 million for the same period in 2022 largely due to lower negative cession adjustments. Negative net written premiums in the AmTrust Reinsurance segment were $6.0 million compared to negative premiums of $14.9 million for the same period in 2022.
Meanwhile, net investment income increased by $3.0 million or 45.3% for the three-month period, primarily due to an increase in annualized average book yields from fixed income assets to 3.7% from 1.7% previously.
“The market environment has led to a more measured pace of deployment of new alternative investment opportunities, and we are adjusting our investment focus accordingly,” said Haveron.
“Our alternative asset portfolio decreased by 3% during the first quarter, and the slower pace of deployment reflects the challenging market conditions, particularly the continued repricing of fixed income assets, which affords us the opportunity to focus on income producing, lower risk assets at more attractive yields. While our alternative portfolio returns were marginally positive in the first quarter, we are confident our asset management strategy remains on track to achieve its targeted long-term returns.”
On the leadership movements, Barry D. Zyskind, Maiden’s Chairman of the Board, commented: “As our Board evaluated Maiden’s requirements as we continue to advance and further develop our strategies, the Board concluded a reversion to a more traditional leadership structure was in order.”
“As we look to develop an increased operating profile building for the long term, the Board recognized Pat’s significant leadership, experience and aptitude in these areas in becoming the sole CEO,” Zyskind continued.
“While continuing his executive duties, Larry’s appointment as Executive Vice Chairman of our Board recognizes his many contributions during his time with Maiden, particularly during the Company’s most challenging period. We look forward to both of their continuing contributions as we move ahead.”
