Maiden Holdings Announces Sale of U.S. Treaty Reinsurance Renewal Rights to TransRe and Update on Strategic Review
PEMBROKE, Bermuda, Aug. 29, 2018 (GLOBE NEWSWIRE) -- Maiden Holdings, Ltd. (NASDAQ: MHLD) (“Maiden” or the “Company”) announced today that it has sold the renewal rights in respect of its U.S. treaty reinsurance underwriting business to Transatlantic Reinsurance Company (“TransRe”).
The transaction, which has now closed, does not include any of the Bermuda underwriting elements of Maiden’s portfolio including its AmTrust Business or its International Insurance Services and Capital Solutions businesses in Europe, which forms the significant majority of Maiden’s existing business and will remain as part of its on-going business.
The Company also reported that in connection with its previously announced strategic review, it is in advanced discussions regarding the sale of its wholly-owned subsidiary, Maiden Reinsurance North America, Inc. (“MRNA”) to a third party. The transaction would cover approximately $1.1 billion of loss and LAE reserves as of June 30, 2018. Readers are cautioned that such discussions may or may not lead to an agreement to sell MRNA. The Company does not expect to disclose any further developments unless and until it determines that further disclosure is appropriate or required.
The completion of the sale of the renewal rights begins the process of simplifying Maiden’s operations, and along with anticipated restructuring and related expense reductions, are expected to improve its business performance and profitability, and significantly reduces the amount of capital required for Maiden’s operations.
“The announcement of this transaction represents an important step in Maiden’s continuing strategic review process and we believe this transaction will increase our financial flexibility, improve our operating efficiency and profitability and broaden our ability to allocate capital to future strategies, which in turn will create value for our shareholders,” said Lawrence F. Metz, Maiden’s President and Chief Executive Officer designate.
Metz continued: “We are deeply grateful to the Maiden team for their continued efforts in this challenging environment and, prospectively, we will coordinate closely with clients to ensure a smooth transition.”
About Maiden Holdings, Ltd.
Maiden Holdings, Ltd. is a Bermuda-based holding company formed in 2007. Through its subsidiaries, which are each A- rated (excellent) by A.M. Best, the Company is focused on providing non-catastrophic, customized reinsurance products and services to small and mid-size insurance companies in the United States and Europe. As of June 30, 2018, Maiden had $6.7 billion in assets and shareholders' equity of $1.1 billion.
Forward Looking Statements
This release contains "forward-looking statements" which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The forward-looking statements are based on the Company's current expectations and beliefs concerning future developments and their potential effects on the Company, including forward-looking statements with respect to the potential sale of MRNA, the benefits expected to be derived from the sale of the renewal rights and the achievement of additional operational efficiencies and expense reductions. Readers are cautioned that actual results may differ materially from those projected as a result of significant risks and uncertainties, including the ability to negotiate a satisfactory agreement with respect to the sale of MRNA, delay in achieving improvements (if any) in the Company’s business results and financial positions, non-receipt of expected payments, changes in interest rates, effect of the performance of financial markets on investment income and fair values of investments, developments of claims and the effect on loss reserves, accuracy in projecting loss reserves, the impact of competition and pricing environments, changes in the demand for the Company's products, the effect of general economic conditions and unusual frequency of storm activity, adverse state and federal legislation, regulations and regulatory investigations into industry practices, developments relating to existing agreements, heightened competition, changes in pricing environments, and changes in asset valuations. Additional information about these risks and uncertainties, as well as others that may cause actual results to differ materially from those projected is contained in Item 1A. Risk Factors in the Company's Annual Report on Form 10-K for the year ended December 31, 2017 as updated in periodic filings with the SEC. However these factors should not be construed as exhaustive. Forward-looking statements speak only as of the date they are made and the Company undertakes no obligation to update or revise any forward-looking statement that may be made from time to time, whether as a result of new information, future developments or otherwise, except as required by law.
CONTACT:
Bill Horning, Senior Vice President, Investor Relations
Maiden Holdings, Ltd.
Phone: 856.359.2532
E-mail:
