Maiden Holdings has agreed to a partial termination amendment to its quota share agreement with AmTrust Financial Services, which will see it return approximately $700 million in gross unearned premium.
The amendment enables Maiden to exit specific lines of business in the quota share agreement, including Small Commercial Business and U.S Extended Warranty and Specialty Risk, as of 31 December 2018.
The Maiden Quota Share Agreement is currently in-force and was originally set to expire on 30 June 2019.
After consideration of ceding commission and brokerage, the gross unearned premium returned to AmTrust will net to approximately $480 million, Maiden explained.
“This amendment to our quota share agreement with AmTrust further strengthens Maiden’s capital position while continuing to position Maiden for the future,” said Lawrence F. Metz, President and Chief Executive Officer (CEO) at Maiden.
“This amendment partially terminates specific lines of business in our AmTrust quota share agreement, including Small Commercial Business and US Extended Warranty and Specialty Risk,” he continued.
“The remainder of our AmTrust quota share agreement remains in-force and we continue to work with AmTrust towards a potential new, smaller agreement.”