x
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
o
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
Bermuda
(State or other jurisdiction of
incorporation or organization)
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98-0570192
(IRS Employer
Identification No.)
|
|
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131 Front Street, Hamilton, Bermuda
(Address of principal executive offices)
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HM12
(Zip Code)
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Large accelerated filer
x
|
|
Accelerated filer
o
|
|
|
|
Non-accelerated filer
o
(Do not check if a smaller reporting company)
|
|
Smaller reporting company
o
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INDEX
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Page
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PART I - Financial Information
|
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Condensed Consolidated Balance Sheets as of September 30, 2016 (unaudited) and December 31, 2015 (audited)
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Condensed Consolidated Statements of Income for the three and nine months ended September 30, 2016 and 2015 (unaudited)
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Condensed Consolidated Statements of Comprehensive Income for the three and nine months ended September 30, 2016 and 2015 (unaudited)
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Condensed Consolidated Statements of Changes in Shareholders' Equity for the nine months ended September 30, 2016 and 2015 (unaudited)
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Condensed Consolidated Statements of Cash Flows for the nine months ended September 30, 2016 and 2015 (unaudited)
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PART II - Other Information
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Item 3
.
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||
|
|
|
|
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September 30, 2016 (Unaudited)
|
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December 31, 2015
(Audited) |
||||
ASSETS
|
|
|
|
||||
Investments:
|
|
|
|
||||
Fixed maturities, available-for-sale, at fair value
(amortized cost 2016: $3,660,873; 2015: $3,562,864)
|
$
|
3,748,342
|
|
|
$
|
3,508,088
|
|
Fixed maturities, held-to-maturity, at amortized cost
(fair value 2016: $798,081; 2015: $598,975)
|
759,973
|
|
|
607,843
|
|
||
Other investments, at fair value
(cost 2016: $10,860; 2015: $10,816)
|
12,268
|
|
|
11,812
|
|
||
Total investments
|
4,520,583
|
|
|
4,127,743
|
|
||
Cash and cash equivalents
|
67,459
|
|
|
89,641
|
|
||
Restricted cash and cash equivalents
|
366,563
|
|
|
242,859
|
|
||
Accrued investment income
|
33,884
|
|
|
32,288
|
|
||
Reinsurance balances receivable, net
(
includes $220,555 and $147,365 from related parties in 2016 and 2015, respectively
)
|
535,015
|
|
|
377,318
|
|
||
Reinsurance recoverable on unpaid losses
|
97,070
|
|
|
71,248
|
|
||
Loan to related party
|
167,975
|
|
|
167,975
|
|
||
Deferred commission and other acquisition expenses, net
(includes $388,099 and $341,025 from related parties in 2016 and 2015, respectively)
|
451,698
|
|
|
397,548
|
|
||
Goodwill and intangible assets, net
|
80,135
|
|
|
81,920
|
|
||
Other assets
|
147,580
|
|
|
115,038
|
|
||
Total assets
|
$
|
6,467,962
|
|
|
$
|
5,703,578
|
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LIABILITIES
|
|
|
|
||||
Reserve for loss and loss adjustment expenses
(includes $1,676,647 and $1,443,639 from related parties in 2016 and 2015, respectively)
|
$
|
2,759,518
|
|
|
$
|
2,510,101
|
|
Unearned premiums
(
includes $1,204,853 and $1,077,460 from related parties in 2016 and 2015, respectively)
|
1,571,435
|
|
|
1,354,572
|
|
||
Accrued expenses and other liabilities
|
150,741
|
|
|
135,897
|
|
||
Liability for securities purchased
|
78,581
|
|
|
3,976
|
|
||
Senior Notes - principal amount
|
362,500
|
|
|
360,000
|
|
||
Less unamortized issuance costs
|
11,172
|
|
|
10,067
|
|
||
Senior notes, net
|
351,328
|
|
|
349,933
|
|
||
Total liabilities
|
4,911,603
|
|
|
4,354,479
|
|
||
Commitments and Contingencies
|
|
|
|
|
|
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EQUITY
|
|
|
|
||||
Preference shares
|
315,000
|
|
|
480,000
|
|
||
Common shares
($0.01 par value: 87,178,902 and 74,735,785 shares issued in 2016 and 2015, respectively; 86,128,999 and 73,721,140 sha
res outstanding in 2016 and 2015, respectively)
|
872
|
|
|
747
|
|
||
Additional paid-in capital
|
747,203
|
|
|
579,178
|
|
||
Accumulated other comprehensive income (loss)
|
123,876
|
|
|
(23,767
|
)
|
||
Retained earnings
|
373,340
|
|
|
316,184
|
|
||
Treasury shares, at cost
(1,049,903 and 1,014,645 shares in 2016 and 2015, respectively)
|
(4,991
|
)
|
|
(4,521
|
)
|
||
Total Maiden shareholders’ equity
|
1,555,300
|
|
|
1,347,821
|
|
||
Noncontrolling interest in subsidiaries
|
1,059
|
|
|
1,278
|
|
||
Total equity
|
1,556,359
|
|
|
1,349,099
|
|
||
Total liabilities and equity
|
$
|
6,467,962
|
|
|
$
|
5,703,578
|
|
|
|
For the Three Months Ended September 30,
|
|
For the Nine Months Ended September 30,
|
||||||||||||
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Revenues:
|
|
|
|
|
|
|
|
|
||||||||
Gross premiums written
|
|
$
|
706,854
|
|
|
$
|
628,501
|
|
|
$
|
2,259,290
|
|
|
$
|
2,136,935
|
|
Net premiums written
|
|
$
|
690,653
|
|
|
$
|
599,153
|
|
|
$
|
2,133,911
|
|
|
$
|
2,025,754
|
|
Change in unearned premiums
|
|
7,625
|
|
|
59,367
|
|
|
(182,060
|
)
|
|
(180,495
|
)
|
||||
Net premiums earned
|
|
698,278
|
|
|
658,520
|
|
|
1,951,851
|
|
|
1,845,259
|
|
||||
Other insurance revenue
|
|
2,345
|
|
|
2,177
|
|
|
8,696
|
|
|
9,408
|
|
||||
Net investment income
|
|
35,666
|
|
|
32,843
|
|
|
107,291
|
|
|
96,260
|
|
||||
Net realized gains on investment
|
|
1,900
|
|
|
1,216
|
|
|
4,511
|
|
|
2,327
|
|
||||
Total other-than-temporary impairment losses
|
|
—
|
|
|
(1,060
|
)
|
|
—
|
|
|
(1,060
|
)
|
||||
Portion of loss recognized in other comprehensive income (loss)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Net impairment losses recognized in earnings
|
|
—
|
|
|
(1,060
|
)
|
|
—
|
|
|
(1,060
|
)
|
||||
Total revenues
|
|
738,189
|
|
|
693,696
|
|
|
2,072,349
|
|
|
1,952,194
|
|
||||
Expenses:
|
|
|
|
|
|
|
|
|
||||||||
Net loss and loss adjustment expenses
|
|
466,751
|
|
|
444,172
|
|
|
1,297,361
|
|
|
1,236,505
|
|
||||
Commission and other acquisition expenses
|
|
206,706
|
|
|
197,639
|
|
|
587,501
|
|
|
551,678
|
|
||||
General and administrative expenses
|
|
16,952
|
|
|
16,453
|
|
|
49,738
|
|
|
48,951
|
|
||||
Interest and amortization expenses
|
|
6,856
|
|
|
7,266
|
|
|
21,314
|
|
|
21,796
|
|
||||
Accelerated amortization of senior note issuance cost
|
|
—
|
|
|
—
|
|
|
2,345
|
|
|
—
|
|
||||
Amortization of intangible assets
|
|
616
|
|
|
710
|
|
|
1,846
|
|
|
2,130
|
|
||||
Foreign exchange and other gains
|
|
(687
|
)
|
|
(1,427
|
)
|
|
(6,474
|
)
|
|
(4,062
|
)
|
||||
Total expenses
|
|
697,194
|
|
|
664,813
|
|
|
1,953,631
|
|
|
1,856,998
|
|
||||
Income before income taxes
|
|
40,995
|
|
|
28,883
|
|
|
118,718
|
|
|
95,196
|
|
||||
Income tax expense
|
|
199
|
|
|
368
|
|
|
1,206
|
|
|
1,636
|
|
||||
Net income
|
|
40,796
|
|
|
28,515
|
|
|
117,512
|
|
|
93,560
|
|
||||
Loss attributable to noncontrolling interest
|
|
56
|
|
|
69
|
|
|
166
|
|
|
116
|
|
||||
Net income attributable to Maiden shareholders
|
|
40,852
|
|
|
28,584
|
|
|
117,678
|
|
|
93,676
|
|
||||
Dividends on preference shares
|
|
(9,023
|
)
|
|
(6,085
|
)
|
|
(27,723
|
)
|
|
(18,253
|
)
|
||||
Net income attributable to Maiden common shareholders
|
|
$
|
31,829
|
|
|
$
|
22,499
|
|
|
$
|
89,955
|
|
|
$
|
75,423
|
|
Basic earnings per share attributable to Maiden common shareholders
|
|
$
|
0.42
|
|
|
$
|
0.31
|
|
|
$
|
1.20
|
|
|
$
|
1.03
|
|
Diluted earnings per share attributable to Maiden common shareholders
|
|
$
|
0.40
|
|
|
$
|
0.30
|
|
|
$
|
1.15
|
|
|
$
|
0.99
|
|
Dividends declared per common share
|
|
$
|
0.14
|
|
|
$
|
0.13
|
|
|
$
|
0.42
|
|
|
$
|
0.39
|
|
|
|
For the Three Months Ended September 30,
|
|
For the Nine Months Ended September 30,
|
||||||||||||
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Net income
|
|
$
|
40,796
|
|
|
$
|
28,515
|
|
|
$
|
117,512
|
|
|
$
|
93,560
|
|
Net unrealized holding gains (losses) on available-for-sale fixed maturities arising during the period
|
|
8,888
|
|
|
(17,191
|
)
|
|
155,052
|
|
|
(80,725
|
)
|
||||
Adjustment for reclassification of net realized (gains) losses recognized in net income
|
|
(1,202
|
)
|
|
(11
|
)
|
|
578
|
|
|
(5
|
)
|
||||
Foreign currency translation adjustment
|
|
(2,730
|
)
|
|
(741
|
)
|
|
(7,927
|
)
|
|
8,316
|
|
||||
Other comprehensive income (loss), before tax
|
|
4,956
|
|
|
(17,943
|
)
|
|
147,703
|
|
|
(72,414
|
)
|
||||
Income tax benefit (expense) related to components of other comprehensive income
|
|
11
|
|
|
18
|
|
|
(28
|
)
|
|
82
|
|
||||
Other comprehensive income (loss), after tax
|
|
4,967
|
|
|
(17,925
|
)
|
|
147,675
|
|
|
(72,332
|
)
|
||||
Comprehensive income
|
|
45,763
|
|
|
10,590
|
|
|
265,187
|
|
|
21,228
|
|
||||
Net loss attributable to noncontrolling interest
|
|
56
|
|
|
69
|
|
|
166
|
|
|
116
|
|
||||
Other comprehensive (income) loss attributable to noncontrolling interest
|
|
(17
|
)
|
|
(1
|
)
|
|
(32
|
)
|
|
46
|
|
||||
Comprehensive loss attributable to noncontrolling interest
|
|
39
|
|
|
68
|
|
|
134
|
|
|
162
|
|
||||
Comprehensive income attributable to Maiden shareholders
|
|
$
|
45,802
|
|
|
$
|
10,658
|
|
|
$
|
265,321
|
|
|
$
|
21,390
|
|
For the Nine Months Ended September 30,
|
|
2016
|
|
2015
|
||||
Preference shares
|
|
|
|
|
||||
Beginning balance
|
|
$
|
480,000
|
|
|
$
|
315,000
|
|
Less: mandatory conversion of Preference Shares - Series B
|
|
(165,000
|
)
|
|
—
|
|
||
Ending balance
|
|
315,000
|
|
|
315,000
|
|
||
Common shares
|
|
|
|
|
||||
Beginning balance
|
|
747
|
|
|
739
|
|
||
Exercise of options and issuance of shares
|
|
4
|
|
|
8
|
|
||
Shares issued on mandatory conversion of Preference Shares - Series B
|
|
121
|
|
|
—
|
|
||
Ending balance
|
|
872
|
|
|
747
|
|
||
Additional paid-in capital
|
|
|
|
|
||||
Beginning balance
|
|
579,178
|
|
|
578,445
|
|
||
Exercise of options and issuance of common shares
|
|
662
|
|
|
3,072
|
|
||
Share-based compensation expense
|
|
2,625
|
|
|
2,519
|
|
||
Mandatory conversion of Preference Shares - Series B
|
|
164,879
|
|
|
—
|
|
||
Others
|
|
(141
|
)
|
|
—
|
|
||
Ending balance
|
|
747,203
|
|
|
584,036
|
|
||
Accumulated other comprehensive income
|
|
|
|
|
||||
Beginning balance
|
|
(23,767
|
)
|
|
95,293
|
|
||
Change in net unrealized gains (losses) on investments, net
|
|
155,602
|
|
|
(80,648
|
)
|
||
Foreign currency translation adjustments
|
|
(7,959
|
)
|
|
8,362
|
|
||
Ending balance
|
|
123,876
|
|
|
23,007
|
|
||
Retained earnings
|
|
|
|
|
||||
Beginning balance
|
|
316,184
|
|
|
255,084
|
|
||
Net income attributable to Maiden shareholders
|
|
117,678
|
|
|
93,676
|
|
||
Dividends on preference shares
|
|
(27,723
|
)
|
|
(18,253
|
)
|
||
Dividends on common shares
|
|
(32,799
|
)
|
|
(28,711
|
)
|
||
Ending balance
|
|
373,340
|
|
|
301,796
|
|
||
Treasury shares
|
|
|
|
|
||||
Beginning balance
|
|
(4,521
|
)
|
|
(3,867
|
)
|
||
Shares repurchased for treasury
|
|
(470
|
)
|
|
(654
|
)
|
||
Ending balance
|
|
(4,991
|
)
|
|
(4,521
|
)
|
||
Noncontrolling interest in subsidiaries
|
|
|
|
|
||||
Beginning balance
|
|
1,278
|
|
|
472
|
|
||
Change in minority interest
|
|
(54
|
)
|
|
1,710
|
|
||
Dividend paid to noncontrolling interest
|
|
(31
|
)
|
|
(303
|
)
|
||
Loss attributable to noncontrolling interest
|
|
(166
|
)
|
|
(116
|
)
|
||
Foreign currency translation adjustments
|
|
32
|
|
|
(46
|
)
|
||
Ending balance
|
|
1,059
|
|
|
1,717
|
|
||
Total equity
|
|
$
|
1,556,359
|
|
|
$
|
1,221,782
|
|
For the Nine Months Ended September 30,
|
|
2016
|
|
2015
|
||||
Cash flows from operating activities:
|
|
|
|
|
||||
Net income
|
|
$
|
117,512
|
|
|
$
|
93,560
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
||||
Depreciation and amortization
|
|
16,841
|
|
|
7,077
|
|
||
Net realized gains on investment
|
|
(4,511
|
)
|
|
(2,327
|
)
|
||
Net impairment losses recognized in earnings
|
|
—
|
|
|
1,060
|
|
||
Foreign exchange and other gains
|
|
(6,474
|
)
|
|
(4,062
|
)
|
||
Changes in assets – (increase) decrease:
|
|
|
|
|
||||
Reinsurance balances receivable, net
|
|
(154,091
|
)
|
|
14,093
|
|
||
Reinsurance recoverable on unpaid losses
|
|
(26,281
|
)
|
|
(17,374
|
)
|
||
Accrued investment income
|
|
(1,537
|
)
|
|
(3,110
|
)
|
||
Deferred commission and other acquisition expenses
|
|
(49,713
|
)
|
|
(57,838
|
)
|
||
Other assets
|
|
(32,027
|
)
|
|
(64,512
|
)
|
||
Changes in liabilities – increase (decrease):
|
|
|
|
|
||||
Reserve for loss and loss adjustment expenses
|
|
250,937
|
|
|
291,123
|
|
||
Unearned premiums
|
|
204,752
|
|
|
238,726
|
|
||
Accrued expenses and other liabilities
|
|
10,749
|
|
|
29,596
|
|
||
Net cash provided by operating activities
|
|
326,157
|
|
|
526,012
|
|
||
Cash flows from investing activities:
|
|
|
|
|
||||
Purchases of fixed maturities – available-for-sale
|
|
(732,001
|
)
|
|
(1,095,162
|
)
|
||
Purchases of other investments
|
|
(167
|
)
|
|
(144
|
)
|
||
Proceeds from sales of fixed maturities – available-for-sale
|
|
101,923
|
|
|
116,093
|
|
||
Proceeds from maturities and calls of fixed maturities
|
|
442,490
|
|
|
467,910
|
|
||
Proceeds from redemption of other investments
|
|
572
|
|
|
344
|
|
||
(Increase) decrease in restricted cash and cash equivalents, net
|
|
(103,685
|
)
|
|
41,022
|
|
||
Other, net
|
|
(521
|
)
|
|
(715
|
)
|
||
Net cash used in investing activities
|
|
(291,389
|
)
|
|
(470,652
|
)
|
||
Cash flows from financing activities:
|
|
|
|
|
||||
Senior notes issuance, net of issuance costs
|
|
106,424
|
|
|
—
|
|
||
Redemption of 2011 senior notes
|
|
(107,500
|
)
|
|
—
|
|
||
Common share issuance
|
|
666
|
|
|
3,080
|
|
||
Repurchase of common shares for treasury
|
|
(470
|
)
|
|
(654
|
)
|
||
Dividends paid to common shareholders
|
|
(31,062
|
)
|
|
(28,616
|
)
|
||
Dividends paid to preference shareholders
|
|
(27,723
|
)
|
|
(18,253
|
)
|
||
Net cash used in financing activities
|
|
(59,665
|
)
|
|
(44,443
|
)
|
||
Effect of exchange rate changes on foreign currency cash
|
|
2,715
|
|
|
(1,485
|
)
|
||
Net (decrease) increase in cash and cash equivalents
|
|
(22,182
|
)
|
|
9,432
|
|
||
Cash and cash equivalents, beginning of period
|
|
89,641
|
|
|
108,119
|
|
||
Cash and cash equivalents, end of period
|
|
$
|
67,459
|
|
|
$
|
117,551
|
|
For the Three Months Ended September 30, 2016
|
|
Diversified Reinsurance
|
|
AmTrust Reinsurance
|
|
Other
|
|
Total
|
||||||||
Gross premiums written
|
|
$
|
186,750
|
|
|
$
|
520,104
|
|
|
$
|
—
|
|
|
$
|
706,854
|
|
Net premiums written
|
|
$
|
179,092
|
|
|
$
|
511,561
|
|
|
$
|
—
|
|
|
$
|
690,653
|
|
Net premiums earned
|
|
$
|
175,141
|
|
|
$
|
523,137
|
|
|
$
|
—
|
|
|
$
|
698,278
|
|
Other insurance revenue
|
|
2,345
|
|
|
—
|
|
|
—
|
|
|
2,345
|
|
||||
Net loss and loss adjustment expenses ("LAE")
|
|
(132,396
|
)
|
|
(334,310
|
)
|
|
(45
|
)
|
|
(466,751
|
)
|
||||
Commission and other acquisition expenses
|
|
(39,868
|
)
|
|
(166,836
|
)
|
|
(2
|
)
|
|
(206,706
|
)
|
||||
General and administrative expenses
|
|
(9,038
|
)
|
|
(759
|
)
|
|
—
|
|
|
(9,797
|
)
|
||||
Underwriting income (loss)
|
|
$
|
(3,816
|
)
|
|
$
|
21,232
|
|
|
$
|
(47
|
)
|
|
$
|
17,369
|
|
Reconciliation to net income
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net investment income and realized gains on investment
|
|
|
|
|
|
|
|
|
|
|
37,566
|
|
||||
Interest and amortization expenses
|
|
|
|
|
|
|
|
(6,856
|
)
|
|||||||
Amortization of intangible assets
|
|
|
|
|
|
|
|
|
|
|
(616
|
)
|
||||
Foreign exchange and other gains
|
|
|
|
|
|
|
|
|
|
|
687
|
|
||||
Other general and administrative expenses
|
|
|
|
|
|
|
|
|
|
|
(7,155
|
)
|
||||
Income tax expense
|
|
|
|
|
|
|
|
|
|
|
(199
|
)
|
||||
Net income
|
|
|
|
|
|
|
|
|
|
|
$
|
40,796
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net loss and LAE ratio
(1)
|
|
74.6
|
%
|
|
63.9
|
%
|
|
|
|
66.6
|
%
|
|||||
Commission and other acquisition expense ratio
(2)
|
|
22.5
|
%
|
|
31.9
|
%
|
|
|
|
29.5
|
%
|
|||||
General and administrative expense ratio
(3)
|
|
5.1
|
%
|
|
0.1
|
%
|
|
|
|
2.4
|
%
|
|||||
Combined ratio
(4)
|
|
102.2
|
%
|
|
95.9
|
%
|
|
|
|
98.5
|
%
|
For the Three Months Ended September 30, 2015
|
|
Diversified Reinsurance
|
|
AmTrust Reinsurance
|
|
Other
|
|
Total
|
||||||||
Gross premiums written
|
|
$
|
174,307
|
|
|
$
|
454,194
|
|
|
$
|
—
|
|
|
$
|
628,501
|
|
Net premiums written
|
|
$
|
163,710
|
|
|
$
|
435,443
|
|
|
$
|
—
|
|
|
$
|
599,153
|
|
Net premiums earned
|
|
$
|
193,207
|
|
|
$
|
465,313
|
|
|
$
|
—
|
|
|
$
|
658,520
|
|
Other insurance revenue
|
|
2,177
|
|
|
—
|
|
|
—
|
|
|
2,177
|
|
||||
Net loss and LAE
|
|
(142,468
|
)
|
|
(297,780
|
)
|
|
(3,924
|
)
|
|
(444,172
|
)
|
||||
Commission and other acquisition expenses
|
|
(51,714
|
)
|
|
(146,008
|
)
|
|
83
|
|
|
(197,639
|
)
|
||||
General and administrative expenses
|
|
(8,218
|
)
|
|
(656
|
)
|
|
—
|
|
|
(8,874
|
)
|
||||
Underwriting income (loss)
|
|
$
|
(7,016
|
)
|
|
$
|
20,869
|
|
|
$
|
(3,841
|
)
|
|
$
|
10,012
|
|
Reconciliation to net income
|
|
|
|
|
|
|
|
|
||||||||
Net investment income and realized gains on investment
|
|
|
|
|
|
|
|
34,059
|
|
|||||||
Net impairment losses recognized in earnings
|
|
|
|
|
|
|
|
(1,060
|
)
|
|||||||
Interest and amortization expenses
|
|
|
|
|
|
|
|
(7,266
|
)
|
|||||||
Amortization of intangible assets
|
|
|
|
|
|
|
|
(710
|
)
|
|||||||
Foreign exchange and other gains
|
|
|
|
|
|
|
|
1,427
|
|
|||||||
Other general and administrative expenses
|
|
|
|
|
|
|
|
(7,579
|
)
|
|||||||
Income tax expense
|
|
|
|
|
|
|
|
(368
|
)
|
|||||||
Net income
|
|
|
|
|
|
|
|
$
|
28,515
|
|
||||||
|
|
|
|
|
|
|
|
|
||||||||
Net loss and LAE ratio
(1)
|
|
72.9
|
%
|
|
63.9
|
%
|
|
|
|
67.2
|
%
|
|||||
Commission and other acquisition expense ratio
(2)
|
|
26.5
|
%
|
|
31.4
|
%
|
|
|
|
29.9
|
%
|
|||||
General and administrative expense ratio
(3)
|
|
4.2
|
%
|
|
0.1
|
%
|
|
|
|
2.5
|
%
|
|||||
Combined ratio
(4)
|
|
103.6
|
%
|
|
95.4
|
%
|
|
|
|
99.6
|
%
|
For the Nine Months Ended September 30, 2016
|
|
Diversified Reinsurance
|
|
AmTrust Reinsurance
|
|
Other
|
|
Total
|
||||||||
Gross premiums written
|
|
$
|
667,388
|
|
|
$
|
1,591,902
|
|
|
$
|
—
|
|
|
$
|
2,259,290
|
|
Net premiums written
|
|
$
|
626,522
|
|
|
$
|
1,507,389
|
|
|
$
|
—
|
|
|
$
|
2,133,911
|
|
Net premiums earned
|
|
$
|
538,152
|
|
|
$
|
1,413,699
|
|
|
$
|
—
|
|
|
$
|
1,951,851
|
|
Other insurance revenue
|
|
8,696
|
|
|
—
|
|
|
—
|
|
|
8,696
|
|
||||
Net loss and LAE
|
|
(395,718
|
)
|
|
(898,703
|
)
|
|
(2,940
|
)
|
|
(1,297,361
|
)
|
||||
Commission and other acquisition expenses
|
|
(139,895
|
)
|
|
(447,604
|
)
|
|
(2
|
)
|
|
(587,501
|
)
|
||||
General and administrative expenses
|
|
(26,717
|
)
|
|
(2,308
|
)
|
|
—
|
|
|
(29,025
|
)
|
||||
Underwriting income (loss)
|
|
$
|
(15,482
|
)
|
|
$
|
65,084
|
|
|
$
|
(2,942
|
)
|
|
$
|
46,660
|
|
Reconciliation to net income
|
|
|
|
|
|
|
|
|
||||||||
Net investment income and realized gains on investment
|
|
|
|
|
|
|
|
111,802
|
|
|||||||
Interest and amortization expenses
|
|
|
|
|
|
|
|
(21,314
|
)
|
|||||||
Accelerated amortization of senior note issuance cost
|
|
|
|
|
|
|
|
(2,345
|
)
|
|||||||
Amortization of intangible assets
|
|
|
|
|
|
|
|
(1,846
|
)
|
|||||||
Foreign exchange and other gains
|
|
|
|
|
|
|
|
6,474
|
|
|||||||
Other general and administrative expenses
|
|
|
|
|
|
|
|
(20,713
|
)
|
|||||||
Income tax expense
|
|
|
|
|
|
|
|
(1,206
|
)
|
|||||||
Net income
|
|
|
|
|
|
|
|
$
|
117,512
|
|
||||||
|
|
|
|
|
|
|
|
|
||||||||
Net loss and LAE ratio
(1)
|
|
72.4
|
%
|
|
63.5
|
%
|
|
|
|
66.2
|
%
|
|||||
Commission and other acquisition expense ratio
(2)
|
|
25.6
|
%
|
|
31.7
|
%
|
|
|
|
30.0
|
%
|
|||||
General and administrative expense ratio
(3)
|
|
4.8
|
%
|
|
0.2
|
%
|
|
|
|
2.5
|
%
|
|||||
Combined ratio
(4)
|
|
102.8
|
%
|
|
95.4
|
%
|
|
|
|
98.7
|
%
|
For the Nine Months Ended September 30, 2015
|
|
Diversified Reinsurance
|
|
AmTrust Reinsurance
|
|
Other
|
|
Total
|
||||||||
Gross premiums written
|
|
$
|
631,294
|
|
|
$
|
1,505,642
|
|
|
$
|
(1
|
)
|
|
$
|
2,136,935
|
|
Net premiums written
|
|
$
|
602,693
|
|
|
$
|
1,423,060
|
|
|
$
|
1
|
|
|
$
|
2,025,754
|
|
Net premiums earned
|
|
$
|
570,694
|
|
|
$
|
1,274,563
|
|
|
$
|
2
|
|
|
$
|
1,845,259
|
|
Other insurance revenue
|
|
9,408
|
|
|
—
|
|
|
—
|
|
|
9,408
|
|
||||
Net loss and LAE
|
|
(417,846
|
)
|
|
(811,016
|
)
|
|
(7,643
|
)
|
|
(1,236,505
|
)
|
||||
Commission and other acquisition expenses
|
|
(152,332
|
)
|
|
(399,291
|
)
|
|
(55
|
)
|
|
(551,678
|
)
|
||||
General and administrative expenses
|
|
(25,976
|
)
|
|
(2,200
|
)
|
|
—
|
|
|
(28,176
|
)
|
||||
Underwriting income (loss)
|
|
$
|
(16,052
|
)
|
|
$
|
62,056
|
|
|
$
|
(7,696
|
)
|
|
$
|
38,308
|
|
Reconciliation to net income
|
|
|
|
|
|
|
|
|
||||||||
Net investment income and realized gains on investment
|
|
|
|
|
|
|
|
98,587
|
|
|||||||
Net impairment losses recognized in earnings
|
|
|
|
|
|
|
|
(1,060
|
)
|
|||||||
Interest and amortization expenses
|
|
|
|
|
|
|
|
(21,796
|
)
|
|||||||
Amortization of intangible assets
|
|
|
|
|
|
|
|
(2,130
|
)
|
|||||||
Foreign exchange and other gains
|
|
|
|
|
|
|
|
4,062
|
|
|||||||
Other general and administrative expenses
|
|
|
|
|
|
|
|
(20,775
|
)
|
|||||||
Income tax expense
|
|
|
|
|
|
|
|
(1,636
|
)
|
|||||||
Net income
|
|
|
|
|
|
|
|
$
|
93,560
|
|
||||||
|
|
|
|
|
|
|
|
|
||||||||
Net loss and LAE ratio
(1)
|
|
72.0
|
%
|
|
63.6
|
%
|
|
|
|
66.7
|
%
|
|||||
Commission and other acquisition expense ratio
(2)
|
|
26.3
|
%
|
|
31.3
|
%
|
|
|
|
29.7
|
%
|
|||||
General and administrative expense ratio
(3)
|
|
4.5
|
%
|
|
0.2
|
%
|
|
|
|
2.7
|
%
|
|||||
Combined ratio
(4)
|
|
102.8
|
%
|
|
95.1
|
%
|
|
|
|
99.1
|
%
|
(1) Calculated by dividing net loss and LAE by net premiums earned and other insurance revenue.
|
||||||||
(2) Calculated by dividing commission and other acquisition expenses by net premiums earned and other insurance revenue.
|
||||||||
(3) Calculated by dividing general and administrative expenses by net premiums earned and other insurance revenue.
|
||||||||
(4) Calculated by adding together the net loss and LAE ratio, commission and other acquisition expense ratio and general and administrative expense ratio.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30, 2016
|
|
Diversified
Reinsurance |
|
AmTrust
Reinsurance |
|
Total
|
||||||
Total assets - reportable segments
|
|
$
|
1,929,455
|
|
|
$
|
3,937,523
|
|
|
$
|
5,866,978
|
|
Corporate assets
|
|
—
|
|
|
—
|
|
|
600,984
|
|
|||
Total Assets
|
|
$
|
1,929,455
|
|
|
$
|
3,937,523
|
|
|
$
|
6,467,962
|
|
December 31, 2015
|
|
Diversified
Reinsurance |
|
AmTrust
Reinsurance |
|
Total
|
||||||
Total assets - reportable segments
|
|
$
|
1,644,541
|
|
|
$
|
3,178,859
|
|
|
$
|
4,823,400
|
|
Corporate assets
|
|
—
|
|
|
—
|
|
|
880,178
|
|
|||
Total Assets
|
|
$
|
1,644,541
|
|
|
$
|
3,178,859
|
|
|
$
|
5,703,578
|
|
For the Three Months Ended September 30,
|
|
2016
|
|
2015
|
||||||||||
Net premiums written
|
|
Total
|
|
% of Total
|
|
Total
|
|
% of Total
|
||||||
Diversified Reinsurance
|
|
|
|
|
|
|
|
|
||||||
Property
|
|
$
|
30,606
|
|
|
4.4
|
%
|
|
$
|
29,574
|
|
|
4.9
|
%
|
Casualty
|
|
115,360
|
|
|
16.7
|
%
|
|
101,191
|
|
|
16.9
|
%
|
||
Accident and Health
|
|
14,845
|
|
|
2.2
|
%
|
|
12,918
|
|
|
2.2
|
%
|
||
International
|
|
18,281
|
|
|
2.6
|
%
|
|
20,027
|
|
|
3.3
|
%
|
||
Total Diversified Reinsurance
|
|
179,092
|
|
|
25.9
|
%
|
|
163,710
|
|
|
27.3
|
%
|
||
AmTrust Reinsurance
|
|
|
|
|
|
|
|
|
||||||
Small Commercial Business
|
|
314,677
|
|
|
45.6
|
%
|
|
231,416
|
|
|
38.6
|
%
|
||
Specialty Program
|
|
98,895
|
|
|
14.3
|
%
|
|
86,612
|
|
|
14.5
|
%
|
||
Specialty Risk and Extended Warranty
|
|
97,989
|
|
|
14.2
|
%
|
|
117,415
|
|
|
19.6
|
%
|
||
Total AmTrust Reinsurance
|
|
511,561
|
|
|
74.1
|
%
|
|
435,443
|
|
|
72.7
|
%
|
||
|
|
$
|
690,653
|
|
|
100.0
|
%
|
|
$
|
599,153
|
|
|
100.0
|
%
|
For the Three Months Ended September 30,
|
|
2016
|
|
2015
|
||||||||||
Net premiums earned
|
|
Total
|
|
% of Total
|
|
Total
|
|
% of Total
|
||||||
Diversified Reinsurance
|
|
|
|
|
|
|
|
|
||||||
Property
|
|
$
|
29,921
|
|
|
4.3
|
%
|
|
$
|
39,593
|
|
|
6.0
|
%
|
Casualty
|
|
105,893
|
|
|
15.2
|
%
|
|
115,646
|
|
|
17.6
|
%
|
||
Accident and Health
|
|
18,436
|
|
|
2.6
|
%
|
|
14,093
|
|
|
2.1
|
%
|
||
International
|
|
20,891
|
|
|
3.0
|
%
|
|
23,875
|
|
|
3.6
|
%
|
||
Total Diversified Reinsurance
|
|
175,141
|
|
|
25.1
|
%
|
|
193,207
|
|
|
29.3
|
%
|
||
AmTrust Reinsurance
|
|
|
|
|
|
|
|
|
||||||
Small Commercial Business
|
|
320,596
|
|
|
45.9
|
%
|
|
257,296
|
|
|
39.1
|
%
|
||
Specialty Program
|
|
89,856
|
|
|
12.9
|
%
|
|
80,302
|
|
|
12.2
|
%
|
||
Specialty Risk and Extended Warranty
|
|
112,685
|
|
|
16.1
|
%
|
|
127,715
|
|
|
19.4
|
%
|
||
Total AmTrust Reinsurance
|
|
523,137
|
|
|
74.9
|
%
|
|
465,313
|
|
|
70.7
|
%
|
||
|
|
$
|
698,278
|
|
|
100.0
|
%
|
|
$
|
658,520
|
|
|
100.0
|
%
|
For the Nine Months Ended September 30,
|
|
2016
|
|
2015
|
||||||||||
Net premiums written
|
|
Total
|
|
% of Total
|
|
Total
|
|
% of Total
|
||||||
Diversified Reinsurance
|
|
|
|
|
|
|
|
|
||||||
Property
|
|
$
|
123,991
|
|
|
5.8
|
%
|
|
$
|
128,482
|
|
|
6.3
|
%
|
Casualty
|
|
365,332
|
|
|
17.1
|
%
|
|
359,530
|
|
|
17.8
|
%
|
||
Accident and Health
|
|
68,140
|
|
|
3.2
|
%
|
|
53,483
|
|
|
2.7
|
%
|
||
International
|
|
69,059
|
|
|
3.2
|
%
|
|
61,198
|
|
|
3.0
|
%
|
||
Total Diversified Reinsurance
|
|
626,522
|
|
|
29.3
|
%
|
|
602,693
|
|
|
29.8
|
%
|
||
AmTrust Reinsurance
|
|
|
|
|
|
|
|
|
|
|
||||
Small Commercial Business
|
|
983,601
|
|
|
46.1
|
%
|
|
857,617
|
|
|
42.3
|
%
|
||
Specialty Program
|
|
268,193
|
|
|
12.6
|
%
|
|
262,068
|
|
|
12.9
|
%
|
||
Specialty Risk and Extended Warranty
|
|
255,595
|
|
|
12.0
|
%
|
|
303,375
|
|
|
15.0
|
%
|
||
Total AmTrust Reinsurance
|
|
1,507,389
|
|
|
70.7
|
%
|
|
1,423,060
|
|
|
70.2
|
%
|
||
Other
|
|
—
|
|
|
—
|
%
|
|
1
|
|
|
—
|
%
|
||
|
|
$
|
2,133,911
|
|
|
100.0
|
%
|
|
$
|
2,025,754
|
|
|
100.0
|
%
|
For the Nine Months Ended September 30,
|
|
2016
|
|
2015
|
||||||||||
Net premiums earned
|
|
Total
|
|
% of Total
|
|
Total
|
|
% of Total
|
||||||
Diversified Reinsurance
|
|
|
|
|
|
|
|
|
||||||
Property
|
|
$
|
103,023
|
|
|
5.3
|
%
|
|
$
|
112,878
|
|
|
6.1
|
%
|
Casualty
|
|
313,736
|
|
|
16.1
|
%
|
|
350,549
|
|
|
19.0
|
%
|
||
Accident and Health
|
|
55,788
|
|
|
2.8
|
%
|
|
41,361
|
|
|
2.2
|
%
|
||
International
|
|
65,605
|
|
|
3.4
|
%
|
|
65,906
|
|
|
3.6
|
%
|
||
Total Diversified Reinsurance
|
|
538,152
|
|
|
27.6
|
%
|
|
570,694
|
|
|
30.9
|
%
|
||
AmTrust Reinsurance
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Small Commercial Business
|
|
864,699
|
|
|
44.3
|
%
|
|
734,731
|
|
|
39.8
|
%
|
||
Specialty Program
|
|
251,543
|
|
|
12.9
|
%
|
|
210,690
|
|
|
11.4
|
%
|
||
Specialty Risk and Extended Warranty
|
|
297,457
|
|
|
15.2
|
%
|
|
329,142
|
|
|
17.9
|
%
|
||
Total AmTrust Reinsurance
|
|
1,413,699
|
|
|
72.4
|
%
|
|
1,274,563
|
|
|
69.1
|
%
|
||
Other
|
|
—
|
|
|
—
|
%
|
|
2
|
|
|
—
|
%
|
||
|
|
$
|
1,951,851
|
|
|
100.0
|
%
|
|
$
|
1,845,259
|
|
|
100.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30, 2016
|
|
Original or
amortized cost |
|
Gross
unrealized gains |
|
Gross
unrealized losses |
|
Fair value
|
||||||||
AFS fixed maturities:
|
|
|
|
|
|
|
|
|
||||||||
U.S. treasury bonds
|
|
$
|
5,183
|
|
|
$
|
317
|
|
|
$
|
—
|
|
|
$
|
5,500
|
|
U.S. agency bonds – mortgage-backed
|
|
1,572,387
|
|
|
34,128
|
|
|
(737
|
)
|
|
1,605,778
|
|
||||
U.S. agency bonds – other
|
|
4,256
|
|
|
362
|
|
|
—
|
|
|
4,618
|
|
||||
Non-U.S. government and supranational bonds
|
|
35,579
|
|
|
264
|
|
|
(3,181
|
)
|
|
32,662
|
|
||||
Asset-backed securities
|
|
205,534
|
|
|
7,306
|
|
|
(49
|
)
|
|
212,791
|
|
||||
Corporate bonds
|
|
1,775,739
|
|
|
75,202
|
|
|
(31,688
|
)
|
|
1,819,253
|
|
||||
Municipal bonds
|
|
62,195
|
|
|
5,545
|
|
|
—
|
|
|
67,740
|
|
||||
Total AFS fixed maturities
|
|
3,660,873
|
|
|
123,124
|
|
|
(35,655
|
)
|
|
3,748,342
|
|
||||
Held-to-maturity ("HTM") fixed maturities:
|
|
|
|
|
|
|
|
|
||||||||
Corporate bonds
|
|
759,973
|
|
|
38,941
|
|
|
(833
|
)
|
|
798,081
|
|
||||
Total HTM fixed maturities
|
|
759,973
|
|
|
38,941
|
|
|
(833
|
)
|
|
798,081
|
|
||||
Other investments
|
|
10,860
|
|
|
1,408
|
|
|
—
|
|
|
12,268
|
|
||||
Total investments
|
|
$
|
4,431,706
|
|
|
$
|
163,473
|
|
|
$
|
(36,488
|
)
|
|
$
|
4,558,691
|
|
December 31, 2015
|
|
Original or
amortized cost |
|
Gross
unrealized gains |
|
Gross
unrealized losses |
|
Fair value
|
||||||||
AFS fixed maturities:
|
|
|
|
|
|
|
|
|
||||||||
U.S. treasury bonds
|
|
$
|
5,714
|
|
|
$
|
312
|
|
|
$
|
(16
|
)
|
|
$
|
6,010
|
|
U.S. agency bonds – mortgage-backed
|
|
1,471,782
|
|
|
15,399
|
|
|
(10,190
|
)
|
|
1,476,991
|
|
||||
U.S. agency bonds – other
|
|
23,734
|
|
|
577
|
|
|
—
|
|
|
24,311
|
|
||||
Non-U.S. government and supranational bonds
|
|
35,128
|
|
|
—
|
|
|
(4,584
|
)
|
|
30,544
|
|
||||
Asset-backed securities
|
|
165,719
|
|
|
1,174
|
|
|
(1,089
|
)
|
|
165,804
|
|
||||
Corporate bonds
|
|
1,798,610
|
|
|
38,070
|
|
|
(97,012
|
)
|
|
1,739,668
|
|
||||
Municipal bonds
|
|
62,177
|
|
|
2,583
|
|
|
—
|
|
|
64,760
|
|
||||
Total AFS fixed maturities
|
|
3,562,864
|
|
|
58,115
|
|
|
(112,891
|
)
|
|
3,508,088
|
|
||||
HTM fixed maturities:
|
|
|
|
|
|
|
|
|
||||||||
Corporate bonds
|
|
607,843
|
|
|
3,458
|
|
|
(12,326
|
)
|
|
598,975
|
|
||||
Total HTM fixed maturities
|
|
607,843
|
|
|
3,458
|
|
|
(12,326
|
)
|
|
598,975
|
|
||||
Other investments
|
|
10,816
|
|
|
1,091
|
|
|
(95
|
)
|
|
11,812
|
|
||||
Total investments
|
|
$
|
4,181,523
|
|
|
$
|
62,664
|
|
|
$
|
(125,312
|
)
|
|
$
|
4,118,875
|
|
|
|
AFS fixed maturities
|
|
HTM fixed maturities
|
||||||||||||
September 30, 2016
|
|
Amortized cost
|
|
Fair value
|
|
Amortized cost
|
|
Fair value
|
||||||||
Maturity
|
|
|
|
|
|
|
|
|
||||||||
Due in one year or less
|
|
$
|
124,653
|
|
|
$
|
120,322
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Due after one year through five years
|
|
483,935
|
|
|
486,485
|
|
|
223,261
|
|
|
226,753
|
|
||||
Due after five years through ten years
|
|
1,260,222
|
|
|
1,308,224
|
|
|
531,624
|
|
|
566,140
|
|
||||
Due after ten years
|
|
14,142
|
|
|
14,742
|
|
|
5,088
|
|
|
5,188
|
|
||||
|
|
1,882,952
|
|
|
1,929,773
|
|
|
759,973
|
|
|
798,081
|
|
||||
U.S. agency bonds – mortgage-backed
|
|
1,572,387
|
|
|
1,605,778
|
|
|
—
|
|
|
—
|
|
||||
Asset-backed securities
|
|
205,534
|
|
|
212,791
|
|
|
—
|
|
|
—
|
|
||||
Total fixed maturities
|
|
$
|
3,660,873
|
|
|
$
|
3,748,342
|
|
|
$
|
759,973
|
|
|
$
|
798,081
|
|
|
|
Less than 12 Months
|
|
12 Months or more
|
|
Total
|
||||||||||||||||||
September 30, 2016
|
|
Fair
value |
|
Unrealized
losses |
|
Fair
value |
|
Unrealized
losses |
|
Fair
value |
|
Unrealized
losses |
||||||||||||
Fixed maturities
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. agency bonds – mortgage-backed
|
|
$
|
13,029
|
|
|
$
|
(27
|
)
|
|
$
|
54,566
|
|
|
$
|
(710
|
)
|
|
$
|
67,595
|
|
|
$
|
(737
|
)
|
Non–U.S. government and supranational bonds
|
|
1,081
|
|
|
(41
|
)
|
|
27,645
|
|
|
(3,140
|
)
|
|
28,726
|
|
|
(3,181
|
)
|
||||||
Asset-backed securities
|
|
21,746
|
|
|
(49
|
)
|
|
—
|
|
|
—
|
|
|
21,746
|
|
|
(49
|
)
|
||||||
Corporate bonds
|
|
171,844
|
|
|
(1,551
|
)
|
|
355,317
|
|
|
(30,970
|
)
|
|
527,161
|
|
|
(32,521
|
)
|
||||||
Total temporarily impaired fixed maturities
|
|
$
|
207,700
|
|
|
$
|
(1,668
|
)
|
|
$
|
437,528
|
|
|
$
|
(34,820
|
)
|
|
$
|
645,228
|
|
|
$
|
(36,488
|
)
|
|
|
Less than 12 Months
|
|
12 Months or more
|
|
Total
|
||||||||||||||||||
December 31, 2015
|
|
Fair
value |
|
Unrealized
losses |
|
Fair
value |
|
Unrealized
losses |
|
Fair
value |
|
Unrealized
losses |
||||||||||||
Fixed maturities
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. treasury bonds
|
|
$
|
1,119
|
|
|
$
|
(16
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,119
|
|
|
$
|
(16
|
)
|
U.S. agency bonds – mortgage-backed
|
|
443,331
|
|
|
(4,113
|
)
|
|
170,053
|
|
|
(6,077
|
)
|
|
613,384
|
|
|
(10,190
|
)
|
||||||
Non–U.S. government and supranational bonds
|
|
6,958
|
|
|
(365
|
)
|
|
22,586
|
|
|
(4,219
|
)
|
|
29,544
|
|
|
(4,584
|
)
|
||||||
Asset-backed securities
|
|
89,838
|
|
|
(1,089
|
)
|
|
—
|
|
|
—
|
|
|
89,838
|
|
|
(1,089
|
)
|
||||||
Corporate bonds
|
|
752,911
|
|
|
(41,352
|
)
|
|
399,779
|
|
|
(67,986
|
)
|
|
1,152,690
|
|
|
(109,338
|
)
|
||||||
Total temporarily impaired fixed maturities
|
|
1,294,157
|
|
|
(46,935
|
)
|
|
592,418
|
|
|
(78,282
|
)
|
|
1,886,575
|
|
|
(125,217
|
)
|
||||||
Other investments
|
|
4,905
|
|
|
(95
|
)
|
|
—
|
|
|
—
|
|
|
4,905
|
|
|
(95
|
)
|
||||||
Total temporarily impaired fixed maturities and other investments
|
|
$
|
1,299,062
|
|
|
$
|
(47,030
|
)
|
|
$
|
592,418
|
|
|
$
|
(78,282
|
)
|
|
$
|
1,891,480
|
|
|
$
|
(125,312
|
)
|
Ratings* as of September 30, 2016
|
|
Amortized cost
|
|
Fair value
|
|
% of Total
fair value |
|||||
Fixed maturities
|
|
|
|
|
|
|
|||||
U.S. treasury bonds
|
|
$
|
5,183
|
|
|
$
|
5,500
|
|
|
0.1
|
%
|
U.S. agency bonds
|
|
1,576,643
|
|
|
1,610,396
|
|
|
35.4
|
%
|
||
AAA
|
|
164,038
|
|
|
173,127
|
|
|
3.8
|
%
|
||
AA+, AA, AA-
|
|
244,901
|
|
|
255,882
|
|
|
5.6
|
%
|
||
A+, A, A-
|
|
1,300,659
|
|
|
1,344,515
|
|
|
29.6
|
%
|
||
BBB+, BBB, BBB-
|
|
964,197
|
|
|
990,817
|
|
|
21.8
|
%
|
||
BB+ or lower
|
|
165,225
|
|
|
166,186
|
|
|
3.7
|
%
|
||
Total
|
|
$
|
4,420,846
|
|
|
$
|
4,546,423
|
|
|
100.0
|
%
|
Ratings* as of December 31, 2015
|
|
Amortized cost
|
|
Fair value
|
|
% of Total
fair value |
|||||
Fixed maturities
|
|
|
|
|
|
|
|||||
U.S. treasury bonds
|
|
$
|
5,714
|
|
|
$
|
6,010
|
|
|
0.1
|
%
|
U.S. agency bonds
|
|
1,495,516
|
|
|
1,501,302
|
|
|
36.6
|
%
|
||
AAA
|
|
170,190
|
|
|
170,391
|
|
|
4.1
|
%
|
||
AA+, AA, AA-
|
|
222,506
|
|
|
223,084
|
|
|
5.4
|
%
|
||
A+, A, A-
|
|
1,075,550
|
|
|
1,066,794
|
|
|
26.0
|
%
|
||
BBB+, BBB, BBB-
|
|
1,077,064
|
|
|
1,039,228
|
|
|
25.3
|
%
|
||
BB+ or lower
|
|
124,167
|
|
|
100,254
|
|
|
2.5
|
%
|
||
Total
|
|
$
|
4,170,707
|
|
|
$
|
4,107,063
|
|
|
100.0
|
%
|
|
|
September 30, 2016
|
|
December 31, 2015
|
||||||||||
|
|
Fair value
|
|
% of Total fair value
|
|
Fair value
|
|
% of Total fair value
|
||||||
Investment in quoted equity
|
|
$
|
5,560
|
|
|
45.3
|
%
|
|
$
|
4,905
|
|
|
41.5
|
%
|
Investments in limited partnerships
|
|
5,708
|
|
|
46.5
|
%
|
|
5,907
|
|
|
50.0
|
%
|
||
Other
|
|
1,000
|
|
|
8.2
|
%
|
|
1,000
|
|
|
8.5
|
%
|
||
Total other investments
|
|
$
|
12,268
|
|
|
100.0
|
%
|
|
$
|
11,812
|
|
|
100.0
|
%
|
For the Three Months Ended September 30, 2016
|
|
Gross gains
|
|
Gross losses
|
|
Net
|
||||||
AFS fixed maturities
|
|
$
|
1,813
|
|
|
$
|
—
|
|
|
$
|
1,813
|
|
Other investments
|
|
87
|
|
|
—
|
|
|
87
|
|
|||
Net realized gains on investment
|
|
$
|
1,900
|
|
|
$
|
—
|
|
|
$
|
1,900
|
|
For the Three Months Ended September 30, 2015
|
|
Gross gains
|
|
Gross losses
|
|
Net
|
||||||
AFS fixed maturities
|
|
$
|
1,216
|
|
|
$
|
—
|
|
|
$
|
1,216
|
|
Net realized gains on investment
|
|
$
|
1,216
|
|
|
$
|
—
|
|
|
$
|
1,216
|
|
For the Nine Months Ended September 30, 2016
|
|
Gross gains
|
|
Gross losses
|
|
Net
|
||||||
AFS fixed maturities
|
|
$
|
4,953
|
|
|
$
|
(891
|
)
|
|
$
|
4,062
|
|
Other investments
|
|
449
|
|
|
—
|
|
|
449
|
|
|||
Net realized gains on investment
|
|
$
|
5,402
|
|
|
$
|
(891
|
)
|
|
$
|
4,511
|
|
For the Nine Months Ended September 30, 2015
|
|
Gross gains
|
|
Gross losses
|
|
Net
|
||||||
AFS fixed maturities
|
|
$
|
2,264
|
|
|
$
|
—
|
|
|
$
|
2,264
|
|
Other investments
|
|
63
|
|
|
—
|
|
|
63
|
|
|||
Net realized gains on investment
|
|
$
|
2,327
|
|
|
$
|
—
|
|
|
$
|
2,327
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30, 2016
|
|
December 31, 2015
|
||||
Fixed maturities
|
|
$
|
100,196
|
|
|
$
|
(55,024
|
)
|
Other investments
|
|
1,408
|
|
|
996
|
|
||
Total net unrealized gain (loss)
|
|
101,604
|
|
|
(54,028
|
)
|
||
Deferred income tax expense
|
|
(114
|
)
|
|
(84
|
)
|
||
Net unrealized gains, net of deferred income tax
|
|
$
|
101,490
|
|
|
$
|
(54,112
|
)
|
Change in net unrealized gains, net of deferred income tax
|
|
$
|
155,602
|
|
|
|
|
|
September 30, 2016
|
|
December 31, 2015
|
||||
Restricted cash and cash equivalents – third party agreements
|
|
$
|
112,038
|
|
|
$
|
102,837
|
|
Restricted cash and cash equivalents – related party agreements
|
|
254,433
|
|
|
139,944
|
|
||
Restricted cash and cash equivalents – U.S. state regulatory authorities
|
|
92
|
|
|
78
|
|
||
Total restricted cash and cash equivalents
|
|
366,563
|
|
|
242,859
|
|
||
Restricted investments AFS – in trust for third party agreements at fair value
(
amortized cost: 2016 – $1,233,629; 2015 – $1,081,202
)
|
|
1,256,528
|
|
|
1,067,602
|
|
||
Restricted investments AFS – in trust for related party agreements at fair value
(
amortized cost: 2016 – $1,969,268; 2015 – $1,781,178
)
|
|
2,011,761
|
|
|
1,754,705
|
|
||
Restricted investments HTM – in trust for related party agreements at fair value
(
amortized cost: 2016 – $759,973; 2015 – $607,843
)
|
|
798,081
|
|
|
598,975
|
|
||
Restricted investments AFS – in trust for U.S. state regulatory authorities
(
amortized cost: 2016 – $4,055; 2015 – $4,071
)
|
|
4,312
|
|
|
4,303
|
|
||
Total restricted investments
|
|
4,070,682
|
|
|
3,425,585
|
|
||
Total restricted cash and cash equivalents and investments
|
|
$
|
4,437,245
|
|
|
$
|
3,668,444
|
|
•
|
Level 1
— Valuations based on unadjusted quoted market prices for identical assets or liabilities that we have the ability to access. Valuation adjustments and block discounts are not applied to Level 1 instruments. Since valuations are based on quoted prices that are readily and regularly available in an active market, valuation of these products does not entail a significant degree of judgment. Examples of assets and liabilities utilizing Level 1 inputs include: exchange-traded equity securities and U.S. treasury bonds;
|
•
|
Level 2
— Valuations based on quoted prices for similar assets or liabilities in active markets, quoted prices for identical assets or liabilities in inactive markets, or valuations based on models where the significant inputs are observable (e.g. interest rates, yield curves, prepayment speeds, default rates, loss severities, etc.) or can be corroborated by observable market data. Examples of assets and liabilities utilizing Level 2 inputs include: U.S. government-sponsored agency securities; non-U.S. government and supranational obligations; commercial mortgage-backed securities ("CMBS"); collateralized loan obligations ("CLO"); corporate and municipal bonds; and
|
•
|
Level 3
— Valuations based on models where significant inputs are not observable. The unobservable inputs reflect our own assumptions about assumptions that market participants would use. Examples of assets and liabilities utilizing Level 3 inputs include: insurance and reinsurance derivative contracts; and hedge and credit funds with partial transparency.
|
September 30, 2016
|
|
Quoted Prices in Active
Markets for Identical Assets (Level 1) |
|
Significant Other Observable Inputs (Level 2)
|
|
Significant Unobservable Inputs (Level 3)
|
|
Total Fair Value
|
||||||||
AFS fixed maturities
|
|
|
|
|
|
|
|
|
||||||||
U.S. treasury bonds
|
|
$
|
5,500
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
5,500
|
|
U.S. agency bonds – mortgage-backed
|
|
—
|
|
|
1,605,778
|
|
|
—
|
|
|
1,605,778
|
|
||||
U.S. agency bonds – other
|
|
—
|
|
|
4,618
|
|
|
—
|
|
|
4,618
|
|
||||
Non-U.S. government and supranational bonds
|
|
—
|
|
|
32,662
|
|
|
—
|
|
|
32,662
|
|
||||
Asset-backed securities
|
|
—
|
|
|
212,791
|
|
|
—
|
|
|
212,791
|
|
||||
Corporate bonds
|
|
—
|
|
|
1,819,253
|
|
|
—
|
|
|
1,819,253
|
|
||||
Municipal bonds
|
|
—
|
|
|
67,740
|
|
|
—
|
|
|
67,740
|
|
||||
Other investments
|
|
5,560
|
|
|
—
|
|
|
6,708
|
|
|
12,268
|
|
||||
Total
|
|
$
|
11,060
|
|
|
$
|
3,742,842
|
|
|
$
|
6,708
|
|
|
$
|
3,760,610
|
|
As a percentage of total assets
|
|
0.2
|
%
|
|
57.9
|
%
|
|
0.1
|
%
|
|
58.2
|
%
|
December 31, 2015
|
|
Quoted Prices in Active Markets for Identical Assets
(Level 1) |
|
Significant Other Observable
Inputs (Level 2) |
|
Significant Unobservable Inputs (Level 3)
|
|
Total Fair Value
|
||||||||
AFS fixed maturities
|
|
|
|
|
|
|
|
|
||||||||
U.S. treasury bonds
|
|
$
|
6,010
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
6,010
|
|
U.S. agency bonds – mortgage-backed
|
|
—
|
|
|
1,476,991
|
|
|
—
|
|
|
1,476,991
|
|
||||
U.S. agency bonds – other
|
|
—
|
|
|
24,311
|
|
|
—
|
|
|
24,311
|
|
||||
Non-U.S. government and supranational bonds
|
|
—
|
|
|
30,544
|
|
|
—
|
|
|
30,544
|
|
||||
Asset-backed securities
|
|
—
|
|
|
165,804
|
|
|
—
|
|
|
165,804
|
|
||||
Corporate bonds
|
|
—
|
|
|
1,739,668
|
|
|
—
|
|
|
1,739,668
|
|
||||
Municipal bonds
|
|
—
|
|
|
64,760
|
|
|
—
|
|
|
64,760
|
|
||||
Other investments
|
|
4,905
|
|
|
—
|
|
|
6,907
|
|
|
11,812
|
|
||||
Total
|
|
$
|
10,915
|
|
|
$
|
3,502,078
|
|
|
$
|
6,907
|
|
|
$
|
3,519,900
|
|
As a percentage of total assets
|
|
0.2
|
%
|
|
61.4
|
%
|
|
0.1
|
%
|
|
61.7
|
%
|
|
|
For the Three Months Ended
|
||||||
Other investments:
|
|
September 30, 2016
|
|
September 30, 2015
|
||||
Balance at beginning of period
|
|
$
|
6,562
|
|
|
$
|
6,906
|
|
Total realized gains – included in net realized gains on investment
|
|
87
|
|
|
—
|
|
||
Change in total unrealized gains – included in other comprehensive income (loss)
|
|
29
|
|
|
161
|
|
||
Purchases
|
|
75
|
|
|
—
|
|
||
Redemptions
|
|
(45
|
)
|
|
(270
|
)
|
||
Balance at end of period
|
|
$
|
6,708
|
|
|
$
|
6,797
|
|
|
|
For the Nine Months Ended
|
||||||
Other investments:
|
|
September 30, 2016
|
|
September 30, 2015
|
||||
Balance at beginning of period
|
|
$
|
6,907
|
|
|
$
|
6,581
|
|
Total realized gains – included in net realized gains on investment
|
|
449
|
|
|
63
|
|
||
Change in total unrealized gains – included in other comprehensive income (loss)
|
|
(243
|
)
|
|
353
|
|
||
Purchases
|
|
167
|
|
|
144
|
|
||
Redemptions
|
|
(572
|
)
|
|
(344
|
)
|
||
Balance at end of period
|
|
$
|
6,708
|
|
|
$
|
6,797
|
|
|
|
|
|
|
|
|
September 30, 2016
|
|
December 31, 2015
|
||||||||||||
|
|
Carrying Value
|
|
Fair Value
|
|
Carrying Value
|
|
Fair Value
|
||||||||
Financial Assets
|
|
|
|
|
|
|
|
|
||||||||
HTM - corporate bonds
|
|
$
|
759,973
|
|
|
$
|
798,081
|
|
|
$
|
607,843
|
|
|
$
|
598,975
|
|
Total financial assets
|
|
$
|
759,973
|
|
|
$
|
798,081
|
|
|
$
|
607,843
|
|
|
$
|
598,975
|
|
Financial Liabilities
|
|
|
|
|
|
|
|
|
||||||||
MHNA - 8.25%
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
107,500
|
|
|
$
|
110,424
|
|
MHNB - 8.00%
|
|
100,000
|
|
|
102,608
|
|
|
100,000
|
|
|
105,328
|
|
||||
MHNC - 7.75%
|
|
152,500
|
|
|
164,395
|
|
|
152,500
|
|
|
165,456
|
|
||||
MHLA - 6.625%
|
|
110,000
|
|
|
114,752
|
|
|
—
|
|
|
—
|
|
||||
Total financial liabilities
|
|
$
|
362,500
|
|
|
$
|
381,755
|
|
|
$
|
360,000
|
|
|
$
|
381,208
|
|
|
|
2012 Senior Notes
|
|
2013 Senior Notes
|
|
2016 Senior Notes
|
||||||
Principal
|
|
$
|
100,000
|
|
|
$
|
152,500
|
|
|
$
|
110,000
|
|
Debt Issuance Costs
|
|
3,406
|
|
|
5,054
|
|
|
3,715
|
|
|||
Net Proceeds
|
|
$
|
96,594
|
|
|
$
|
147,446
|
|
|
$
|
106,285
|
|
|
|
|
|
|
|
|
||||||
Unamortized debt issuance costs
|
|
$
|
2,894
|
|
|
$
|
4,574
|
|
|
$
|
3,704
|
|
|
|
|
|
|
|
|
||||||
Other details:
|
|
|
|
|
|
|
||||||
Maturity date
|
|
March 27, 2042
|
|
|
December 1, 2043
|
|
|
June 14, 2046
|
|
|||
Earliest redeemable date (for cash)
|
|
March 27, 2017
|
|
|
December 1, 2018
|
|
|
June 14, 2021
|
|
|||
Coupon rate
|
|
8.00
|
%
|
|
7.75
|
%
|
|
6.625
|
%
|
|||
Effective interest rate
|
|
8.31
|
%
|
|
8.04
|
%
|
|
7.07
|
%
|
For the Three Months Ended September 30,
|
|
2016
|
|
2015
|
||||
Numerator:
|
|
|
|
|
||||
Net income attributable to Maiden shareholders
|
|
$
|
40,852
|
|
|
$
|
28,584
|
|
Dividends on preference shares - Series A
|
|
(3,094
|
)
|
|
(3,094
|
)
|
||
Dividends on convertible preference shares - Series B
|
|
(2,991
|
)
|
|
(2,991
|
)
|
||
Dividends on preference shares - Series C
|
|
(2,938
|
)
|
|
—
|
|
||
Amount allocated to participating common shareholders
(1)
|
|
(19
|
)
|
|
(17
|
)
|
||
Numerator for basic EPS - net income allocated to Maiden common shareholders
|
|
$
|
31,810
|
|
|
$
|
22,482
|
|
Potentially dilutive securities
|
|
|
|
|
||||
Dividends on convertible preference shares - Series B
|
|
2,991
|
|
|
2,991
|
|
||
Numerator for diluted EPS - net income allocated to Maiden common shareholders after assumed conversion
|
|
$
|
34,801
|
|
|
$
|
25,473
|
|
Denominator:
|
|
|
|
|
||||
Weighted average number of common shares outstanding – basic
|
|
75,993,451
|
|
|
73,638,980
|
|
||
Potentially dilutive securities:
|
|
|
|
|
||||
Share options and restricted share units
|
|
1,100,206
|
|
|
1,294,767
|
|
||
Convertible preference shares
(2)
|
|
9,057,294
|
|
|
10,809,258
|
|
||
Adjusted weighted average number of common shares and assumed conversions – diluted
|
|
86,150,951
|
|
|
85,743,005
|
|
||
Basic earnings per share attributable to Maiden common shareholders:
|
|
$
|
0.42
|
|
|
$
|
0.31
|
|
Diluted earnings per share attributable to Maiden common shareholders:
|
|
$
|
0.40
|
|
|
$
|
0.30
|
|
For the Nine Months Ended September 30,
|
|
2016
|
|
2015
|
||||
Numerator:
|
|
|
|
|
||||
Net income attributable to Maiden shareholders
|
|
$
|
117,678
|
|
|
$
|
93,676
|
|
Dividends on preference shares - Series A
|
|
(9,282
|
)
|
|
(9,282
|
)
|
||
Dividends on convertible preference shares - Series B
|
|
(8,971
|
)
|
|
(8,971
|
)
|
||
Dividends on preference shares - Series C
|
|
(9,470
|
)
|
|
—
|
|
||
Amount allocated to participating common shareholders
(1)
|
|
(55
|
)
|
|
(59
|
)
|
||
Numerator for basic EPS - net income allocated to Maiden common shareholders
|
|
$
|
89,900
|
|
|
$
|
75,364
|
|
Potentially dilutive securities
|
|
|
|
|
||||
Dividends on convertible preference shares- Series B
|
|
8,971
|
|
|
8,971
|
|
||
Numerator for diluted EPS - net income allocated to Maiden common shareholders after assumed conversion
|
|
$
|
98,871
|
|
|
$
|
84,335
|
|
Denominator:
|
|
|
|
|
||||
Weighted average number of common shares outstanding – basic
|
|
74,625,839
|
|
|
73,403,998
|
|
||
Potentially dilutive securities:
|
|
|
|
|
||||
Share options and restricted share units
|
|
1,085,740
|
|
|
1,272,746
|
|
||
Convertible preference shares
(2)
|
|
10,306,440
|
|
|
10,809,258
|
|
||
Adjusted weighted average number of common shares and assumed conversions – diluted
|
|
86,018,019
|
|
|
85,486,002
|
|
||
Basic earnings per share attributable to Maiden common shareholders:
|
|
$
|
1.20
|
|
|
$
|
1.03
|
|
Diluted earnings per share attributable to Maiden common shareholders:
|
|
$
|
1.15
|
|
|
$
|
0.99
|
|
|
|
|
|
|
For the Three Months Ended September 30, 2016
|
|
Change in net unrealized gains on investments
|
|
Foreign currency translation adjustments
|
|
Total
|
||||||
Beginning balance
|
|
$
|
93,793
|
|
|
$
|
25,034
|
|
|
$
|
118,827
|
|
Other comprehensive income before reclassifications
|
|
8,899
|
|
|
(2,730
|
)
|
|
6,169
|
|
|||
Amounts reclassified from AOCI to net income, net of tax
|
|
(1,202
|
)
|
|
—
|
|
|
(1,202
|
)
|
|||
Net current period other comprehensive income
|
|
7,697
|
|
|
(2,730
|
)
|
|
4,967
|
|
|||
Ending balance
|
|
101,490
|
|
|
22,304
|
|
|
123,794
|
|
|||
Less: AOCI attributable to noncontrolling interest
|
|
—
|
|
|
(82
|
)
|
|
(82
|
)
|
|||
Ending balance, Maiden shareholders
|
|
$
|
101,490
|
|
|
$
|
22,386
|
|
|
$
|
123,876
|
|
For the Three Months Ended September 30, 2015
|
|
Change in net unrealized gains on investments
|
|
Foreign currency translation adjustments
|
|
Total
|
||||||
Beginning balance
|
|
$
|
15,115
|
|
|
$
|
25,722
|
|
|
$
|
40,837
|
|
Other comprehensive loss before reclassifications
|
|
(17,173
|
)
|
|
(741
|
)
|
|
(17,914
|
)
|
|||
Amounts reclassified from AOCI to net income, net of tax
|
|
(11
|
)
|
|
—
|
|
|
(11
|
)
|
|||
Net current period other comprehensive loss
|
|
(17,184
|
)
|
|
(741
|
)
|
|
(17,925
|
)
|
|||
Ending balance
|
|
(2,069
|
)
|
|
24,981
|
|
|
22,912
|
|
|||
Less: AOCI attributable to noncontrolling interest
|
|
—
|
|
|
(95
|
)
|
|
(95
|
)
|
|||
Ending balance, Maiden shareholders
|
|
$
|
(2,069
|
)
|
|
$
|
25,076
|
|
|
$
|
23,007
|
|
For the Nine Months Ended September 30, 2016
|
|
Change in net unrealized gains on investments
|
|
Foreign currency translation adjustments
|
|
Total
|
||||||
Beginning balance
|
|
$
|
(54,112
|
)
|
|
$
|
30,231
|
|
|
$
|
(23,881
|
)
|
Other comprehensive income before reclassifications
|
|
155,024
|
|
|
(7,927
|
)
|
|
147,097
|
|
|||
Amounts reclassified from AOCI to net income, net of tax
|
|
578
|
|
|
—
|
|
|
578
|
|
|||
Net current period other comprehensive income
|
|
155,602
|
|
|
(7,927
|
)
|
|
147,675
|
|
|||
Ending balance
|
|
101,490
|
|
|
22,304
|
|
|
123,794
|
|
|||
Less: AOCI attributable to noncontrolling interest
|
|
—
|
|
|
(82
|
)
|
|
(82
|
)
|
|||
Ending balance, Maiden shareholders
|
|
$
|
101,490
|
|
|
$
|
22,386
|
|
|
$
|
123,876
|
|
For the Nine Months Ended September 30, 2015
|
|
Change in net unrealized gains on investments
|
|
Foreign currency translation adjustments
|
|
Total
|
||||||
Beginning balance
|
|
$
|
78,579
|
|
|
$
|
16,665
|
|
|
$
|
95,244
|
|
Other comprehensive loss before reclassifications
|
|
(80,643
|
)
|
|
8,316
|
|
|
(72,327
|
)
|
|||
Amounts reclassified from AOCI to net income, net of tax
|
|
(5
|
)
|
|
—
|
|
|
(5
|
)
|
|||
Net current period other comprehensive loss
|
|
(80,648
|
)
|
|
8,316
|
|
|
(72,332
|
)
|
|||
Ending balance
|
|
(2,069
|
)
|
|
24,981
|
|
|
22,912
|
|
|||
Less: AOCI attributable to noncontrolling interest
|
|
—
|
|
|
(95
|
)
|
|
(95
|
)
|
|||
Ending balance, Maiden shareholders
|
|
$
|
(2,069
|
)
|
|
$
|
25,076
|
|
|
$
|
23,007
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividend per Share
|
|
Payable on:
|
|
Record date:
|
||
Common shares
|
|
$
|
0.14
|
|
|
October 19, 2016
|
|
October 5, 2016
|
|
|
Dividend per Share
|
|
Payable on:
|
|
Record date:
|
||
Common shares
|
|
$
|
0.15
|
|
|
January 17, 2017
|
|
January 3, 2017
|
Preference shares - Series A
|
|
$
|
0.515625
|
|
|
December 15, 2016
|
|
December 1, 2016
|
Preference shares - Series C
|
|
$
|
0.445313
|
|
|
December 15, 2016
|
|
December 1, 2016
|
For the Three Months Ended September 30,
|
|
2016
|
|
2015
|
|
% Change
|
|||||
|
|
($ in Millions except per share data)
|
|
|
|||||||
Summary Consolidated Statement of Income Data:
|
|
|
|
|
|
|
|||||
Net Income
|
|
$
|
40.7
|
|
|
$
|
28.5
|
|
|
43.1
|
%
|
Net income attributable to Maiden common shareholders
|
|
31.8
|
|
|
22.5
|
|
|
41.5
|
%
|
||
Net operating earnings attributable to Maiden common shareholders
(1)
|
|
30.2
|
|
|
25.8
|
|
|
17.2
|
%
|
||
Diluted earnings per common share:
|
|
|
|
|
|
|
|||||
Net income attributable to Maiden common shareholders
(2)
|
|
$
|
0.40
|
|
|
$
|
0.30
|
|
|
33.3
|
%
|
Net operating earnings attributable to Maiden common shareholders
(1)
|
|
$
|
0.39
|
|
|
$
|
0.34
|
|
|
14.7
|
%
|
Dividends per common share
|
|
$
|
0.14
|
|
|
$
|
0.13
|
|
|
7.7
|
%
|
Gross premiums written
|
|
$
|
706.9
|
|
|
$
|
628.5
|
|
|
12.5
|
%
|
Net premiums earned
|
|
698.3
|
|
|
658.5
|
|
|
6.0
|
%
|
||
Underwriting income
(3)
|
|
17.3
|
|
|
10.0
|
|
|
73.5
|
%
|
||
Net investment income
|
|
35.7
|
|
|
32.8
|
|
|
8.6
|
%
|
||
Combined ratio
(4)
|
|
98.5
|
%
|
|
99.6
|
%
|
|
(1.1
|
)%
|
||
Annualized operating return on average common shareholders' equity
(1)
|
|
11.0
|
%
|
|
11.3
|
%
|
|
(2.7
|
)%
|
For the Nine Months Ended September 30,
|
|
2016
|
|
2015
|
|
% Change
|
|||||
|
|
($ in Millions except per share data)
|
|
|
|||||||
Summary Consolidated Statement of Income Data:
|
|
|
|
|
|
|
|||||
Net Income
|
|
$
|
117.5
|
|
|
$
|
93.5
|
|
|
25.6
|
%
|
Net income attributable to Maiden common shareholders
|
|
90.0
|
|
|
75.4
|
|
|
19.3
|
%
|
||
Net operating earnings attributable to Maiden common shareholders
(1)
|
|
87.0
|
|
|
80.8
|
|
|
7.7
|
%
|
||
Diluted earnings per common share:
|
|
|
|
|
|
|
|||||
Net income attributable to Maiden common shareholders
(2)
|
|
$
|
1.15
|
|
|
$
|
0.99
|
|
|
16.2
|
%
|
Net operating earnings attributable to Maiden common shareholders
(1)
|
|
$
|
1.11
|
|
|
$
|
1.05
|
|
|
5.7
|
%
|
Dividends per common share
|
|
$
|
0.42
|
|
|
$
|
0.39
|
|
|
7.7
|
%
|
Gross premiums written
|
|
$
|
2,259.3
|
|
|
$
|
2,136.9
|
|
|
5.7
|
%
|
Net premiums earned
|
|
1,951.8
|
|
|
1,845.2
|
|
|
5.8
|
%
|
||
Underwriting income
(3)
|
|
46.6
|
|
|
38.3
|
|
|
21.8
|
%
|
||
Net investment income
|
|
107.3
|
|
|
96.2
|
|
|
11.5
|
%
|
||
Combined ratio
(4)
|
|
98.7
|
%
|
|
99.1
|
%
|
|
(0.4
|
)%
|
||
Annualized operating return on average common shareholders' equity
(1)
|
|
11.8
|
%
|
|
11.8
|
%
|
|
—
|
%
|
|
|
|
|
|
|
|
|
|
September 30, 2016
|
|
December 31, 2015
|
|
% Change
|
|||||
|
|
($ in Millions except per share data)
|
|
|
|||||||
Summary Consolidated Balance Sheet Data:
|
|
|
|
|
|
|
|||||
Total investments and cash and cash equivalents
(5)
|
|
$
|
4,954.6
|
|
|
$
|
4,460.2
|
|
|
11.1
|
%
|
Total assets
|
|
6,468.0
|
|
|
5,703.6
|
|
|
13.4
|
%
|
||
Reserve for loss and LAE
|
|
2,759.5
|
|
|
2,510.1
|
|
|
9.9
|
%
|
||
Senior notes, net
|
|
351.3
|
|
|
349.9
|
|
|
0.4
|
%
|
||
Maiden common shareholders' equity
|
|
1,240.3
|
|
|
867.8
|
|
|
42.9
|
%
|
||
Maiden shareholders' equity
|
|
1,555.3
|
|
|
1,347.8
|
|
|
15.4
|
%
|
||
Total capital resources
(6)
|
|
1,917.8
|
|
|
1,707.8
|
|
|
12.3
|
%
|
||
Ratio of debt to total capital resources
|
|
18.9
|
%
|
|
21.1
|
%
|
|
(10.4
|
)%
|
||
|
|
|
|
|
|
|
|||||
Book Value:
|
|
|
|
|
|
|
|||||
Book value per common share
(7)
|
|
$
|
14.40
|
|
|
$
|
11.77
|
|
|
22.3
|
%
|
Accumulated dividends per common share
|
|
3.17
|
|
|
2.75
|
|
|
15.3
|
%
|
||
Book value per common share plus accumulated dividends
|
|
$
|
17.57
|
|
|
$
|
14.52
|
|
|
21.0
|
%
|
Change in book value per common share plus accumulated dividends
|
|
$
|
3.05
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|||||
Diluted book value per common share
(8)
|
|
$
|
14.20
|
|
|
$
|
11.61
|
|
|
22.3
|
%
|
(1)
|
Operating earnings, operating earnings per common share and annualized operating return on average common shareholders' equity are non-GAAP financial measures. See "
Key Financial Measures
" for additional information and a reconciliation to the nearest GAAP financial measure (net income).
|
(2)
|
Please refer to "
Note 8. Earnings per Common Share
" of the Notes to Condensed Consolidated Financial Statements for the calculation of basic and diluted earnings per common share.
|
(3)
|
Underwriting income is calculated as net premiums earned plus other insurance revenue less net loss and LAE, commission and other acquisition expenses and general and administrative expenses directly related to underwriting activities.
|
(4)
|
Calculated by adding together the net loss and LAE ratio, commission and other acquisition expense ratio and general and administrative expense ratio.
|
(5)
|
Total investments and cash and cash equivalents includes both restricted and unrestricted.
|
(6)
|
Total capital resources is the sum of the Company's principal amount of debt and Maiden shareholders' equity. See "
Key Financial Measures
" for additional information.
|
(7)
|
Book value per common share is calculated using common shareholders’ equity (shareholders' equity excluding the aggregate liquidation value of our preference shares) divided by the number of common shares outstanding.
|
(8)
|
Diluted book value per common share is calculated by dividing common shareholders' equity, adjusted for assumed proceeds from the exercise of dilutive options, by the number of outstanding common shares plus dilutive options and restricted share units (assuming exercise of all dilutive stock based awards). The Mandatory Convertible Preference Shares - Series B are excluded at
December 31, 2015
, as they are anti-dilutive.
|
|
|
For the Three Months Ended September 30,
|
|
For the Nine Months Ended September 30,
|
||||||||||||
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
|
|
($ in Millions except per share data)
|
||||||||||||||
Net income attributable to Maiden common shareholders
|
|
$
|
31.8
|
|
|
$
|
22.5
|
|
|
$
|
90.0
|
|
|
$
|
75.4
|
|
Add (subtract):
|
|
|
|
|
|
|
|
|
||||||||
Net realized gains on investment
|
|
(1.9
|
)
|
|
(1.2
|
)
|
|
(4.5
|
)
|
|
(2.3
|
)
|
||||
Net impairment losses recognized in earnings
|
|
—
|
|
|
1.1
|
|
|
—
|
|
|
1.1
|
|
||||
Foreign exchange and other gains
|
|
(0.7
|
)
|
|
(1.5
|
)
|
|
(6.4
|
)
|
|
(4.1
|
)
|
||||
Amortization of intangible assets and non-cash deferred tax expense
|
|
0.9
|
|
|
1.0
|
|
|
2.7
|
|
|
3.0
|
|
||||
Divested E&S business and NGHC run-off
|
|
0.1
|
|
|
3.9
|
|
|
2.9
|
|
|
7.7
|
|
||||
Accelerated amortization of senior note issuance costs
|
|
—
|
|
|
—
|
|
|
2.3
|
|
|
—
|
|
||||
Net operating earnings attributable to Maiden common shareholders
|
|
$
|
30.2
|
|
|
$
|
25.8
|
|
|
$
|
87.0
|
|
|
$
|
80.8
|
|
|
|
|
|
|
|
|
|
|
||||||||
Diluted earnings per common share attributable to Maiden shareholders
|
|
$
|
0.40
|
|
|
$
|
0.30
|
|
|
$
|
1.15
|
|
|
$
|
0.99
|
|
Add (subtract):
|
|
|
|
|
|
|
|
|
||||||||
Net realized gains on investment
|
|
(0.02
|
)
|
|
(0.01
|
)
|
|
(0.05
|
)
|
|
(0.03
|
)
|
||||
Net impairment losses recognized in earnings
|
|
—
|
|
|
0.01
|
|
|
—
|
|
|
0.01
|
|
||||
Foreign exchange and other gains
|
|
(0.01
|
)
|
|
(0.02
|
)
|
|
(0.08
|
)
|
|
(0.05
|
)
|
||||
Amortization of intangible assets and non-cash deferred tax expense
|
|
0.02
|
|
|
0.02
|
|
|
0.03
|
|
|
0.04
|
|
||||
Divested E&S business and NGHC run-off
|
|
—
|
|
|
0.04
|
|
|
0.03
|
|
|
0.09
|
|
||||
Accelerated amortization of senior note issuance cost
|
|
—
|
|
|
—
|
|
|
0.03
|
|
|
—
|
|
||||
Diluted operating earnings per common share attributable to Maiden shareholders
|
|
$
|
0.39
|
|
|
$
|
0.34
|
|
|
$
|
1.11
|
|
|
$
|
1.05
|
|
|
|
For the Three Months Ended September 30,
|
For the Nine Months Ended September 30,
|
||||||||||||
|
|
2016
|
|
2015
|
2016
|
|
2015
|
||||||||
|
|
($ in Millions)
|
|||||||||||||
Net operating earnings attributable to Maiden common shareholders
|
|
$
|
30.2
|
|
|
$
|
25.8
|
|
$
|
87.0
|
|
|
$
|
80.8
|
|
Opening common shareholders’ equity
|
|
1,049.7
|
|
|
908.7
|
|
867.8
|
|
|
925.7
|
|
||||
Ending common shareholders’ equity
|
|
1,240.3
|
|
|
905.1
|
|
1,240.3
|
|
|
905.1
|
|
||||
Average common shareholders’ equity
(1)
|
|
1,091.2
|
|
|
906.9
|
|
981.2
|
|
|
915.4
|
|
||||
Operating ROACE
|
|
11.0
|
%
|
|
11.3
|
%
|
11.8
|
%
|
|
11.8
|
%
|
|
|
September 30, 2016
|
|
December 31, 2015
|
||||
|
|
($ in Millions except per share data)
|
||||||
Ending common shareholders’ equity
|
|
$
|
1,240.3
|
|
|
$
|
867.8
|
|
Proceeds from assumed conversion of dilutive options
|
|
13.1
|
|
|
13.4
|
|
||
Numerator for diluted book value per common share calculation
|
|
$
|
1,253.4
|
|
|
$
|
881.2
|
|
|
|
|
|
|
||||
Common shares outstanding
|
|
86,128,999
|
|
|
73,721,140
|
|
||
Shares issued from assumed conversion of dilutive options and restricted share units
|
|
2,166,892
|
|
|
2,166,545
|
|
||
Denominator for diluted book value per common share calculation
|
|
88,295,891
|
|
|
75,887,685
|
|
||
|
|
|
|
|
||||
Book value per common share
|
|
$
|
14.40
|
|
|
$
|
11.77
|
|
Diluted book value per common share
(1)
|
|
$
|
14.20
|
|
|
$
|
11.61
|
|
|
|
September 30, 2016
|
|
December 31, 2015
|
||||
|
|
($ in Millions)
|
||||||
Senior notes
|
|
$
|
362.5
|
|
|
$
|
360.0
|
|
Maiden shareholders’ equity
|
|
1,555.3
|
|
|
1,347.8
|
|
||
Total capital resources
|
|
$
|
1,917.8
|
|
|
$
|
1,707.8
|
|
Ratio of debt to total capital resources
|
|
18.9
|
%
|
|
21.1
|
%
|
|
|
For the Three Months Ended September 30,
|
|
For the Nine Months Ended September 30,
|
||||||||||||
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
|
|
($ in Millions)
|
|
($ in Millions)
|
||||||||||||
Gross premiums written
|
|
$
|
706.9
|
|
|
$
|
628.5
|
|
|
$
|
2,259.3
|
|
|
$
|
2,136.9
|
|
Net premiums written
|
|
$
|
690.7
|
|
|
$
|
599.2
|
|
|
$
|
2,133.9
|
|
|
$
|
2,025.8
|
|
Net premiums earned
|
|
$
|
698.3
|
|
|
$
|
658.5
|
|
|
$
|
1,951.8
|
|
|
$
|
1,845.2
|
|
Other insurance revenue
|
|
2.3
|
|
|
2.2
|
|
|
8.7
|
|
|
9.4
|
|
||||
Net loss and loss adjustment expense
|
|
(466.8
|
)
|
|
(444.2
|
)
|
|
(1,297.4
|
)
|
|
(1,236.5
|
)
|
||||
Commission and other acquisition expenses
|
|
(206.7
|
)
|
|
(197.6
|
)
|
|
(587.5
|
)
|
|
(551.6
|
)
|
||||
General and administrative expenses
|
|
(9.8
|
)
|
|
(8.9
|
)
|
|
(29.0
|
)
|
|
(28.2
|
)
|
||||
Underwriting income
|
|
17.3
|
|
|
10.0
|
|
|
46.6
|
|
|
38.3
|
|
||||
Other general and administrative expenses
|
|
(7.2
|
)
|
|
(7.6
|
)
|
|
(20.7
|
)
|
|
(20.8
|
)
|
||||
Net investment income
|
|
35.7
|
|
|
32.8
|
|
|
107.3
|
|
|
96.2
|
|
||||
Net realized gains on investment
|
|
1.9
|
|
|
1.2
|
|
|
4.5
|
|
|
2.3
|
|
||||
Net impairment losses recognized in earnings
|
|
—
|
|
|
(1.1
|
)
|
|
—
|
|
|
(1.1
|
)
|
||||
Accelerated amortization of senior note issuance costs
|
|
—
|
|
|
—
|
|
|
(2.3
|
)
|
|
—
|
|
||||
Amortization of intangible assets
|
|
(0.6
|
)
|
|
(0.7
|
)
|
|
(1.8
|
)
|
|
(2.1
|
)
|
||||
Foreign exchange and other gains
|
|
0.7
|
|
|
1.5
|
|
|
6.4
|
|
|
4.1
|
|
||||
Interest and amortization expenses
|
|
(6.9
|
)
|
|
(7.3
|
)
|
|
(21.3
|
)
|
|
(21.8
|
)
|
||||
Income tax expense
|
|
(0.2
|
)
|
|
(0.3
|
)
|
|
(1.2
|
)
|
|
(1.6
|
)
|
||||
Net Income
|
|
40.7
|
|
|
28.5
|
|
|
117.5
|
|
|
93.5
|
|
||||
Loss attributable to noncontrolling interest
|
|
0.1
|
|
|
0.1
|
|
|
0.2
|
|
|
0.2
|
|
||||
Dividends on preference shares
|
|
(9.0
|
)
|
|
(6.1
|
)
|
|
(27.7
|
)
|
|
(18.3
|
)
|
||||
Net income attributable to Maiden common shareholders
|
|
$
|
31.8
|
|
|
$
|
22.5
|
|
|
$
|
90.0
|
|
|
$
|
75.4
|
|
Ratios
|
|
|
|
|
|
|
|
|
||||||||
Net loss and LAE ratio
(1)
|
|
66.6
|
%
|
|
67.2
|
%
|
|
66.2
|
%
|
|
66.7
|
%
|
||||
Commission and other acquisition expense ratio
(2)
|
|
29.5
|
%
|
|
29.9
|
%
|
|
30.0
|
%
|
|
29.7
|
%
|
||||
General and administrative expense ratio
(3)
|
|
2.4
|
%
|
|
2.5
|
%
|
|
2.5
|
%
|
|
2.7
|
%
|
||||
Expense ratio
(4)
|
|
31.9
|
%
|
|
32.4
|
%
|
|
32.5
|
%
|
|
32.4
|
%
|
||||
Combined ratio
(5)
|
|
98.5
|
%
|
|
99.6
|
%
|
|
98.7
|
%
|
|
99.1
|
%
|
(1) Calculated by dividing net loss and LAE by net premiums earned and other insurance revenue.
|
||||||||
(2) Calculated by dividing commission and other acquisition expenses by net premiums earned and other insurance revenue.
|
||||||||
(3) Calculated by dividing general and administrative expenses by net premiums earned and other insurance revenue.
|
||||||||
(4) Calculated by adding together the commission and other acquisition expense ratio and general and administrative expense ratio.
|
||||||||
(5) Calculated by adding together the net loss and LAE ratio and expense ratio.
|
For the Three Months Ended September 30,
|
|
2016
|
|
2015
|
|
Change in
|
|||||||||||||||
|
|
Total
|
|
% of Total
|
|
Total
|
|
% of Total
|
|
$
|
|
%
|
|||||||||
|
|
($ in Millions)
|
|
|
|
($ in Millions)
|
|
|
|
($ in Millions)
|
|
|
|||||||||
Diversified Reinsurance
|
|
$
|
179.1
|
|
|
25.9
|
%
|
|
$
|
163.7
|
|
|
27.3
|
%
|
|
$
|
15.4
|
|
|
9.4
|
%
|
AmTrust Reinsurance
|
|
511.6
|
|
|
74.1
|
%
|
|
435.5
|
|
|
72.7
|
%
|
|
76.1
|
|
|
17.5
|
%
|
|||
Total reportable segments
|
|
$
|
690.7
|
|
|
100.0
|
%
|
|
$
|
599.2
|
|
|
100.0
|
%
|
|
$
|
91.5
|
|
|
15.3
|
%
|
For the Nine Months Ended September 30,
|
|
2016
|
|
2015
|
|
Change in
|
|||||||||||||||
|
|
Total
|
|
% of Total
|
|
Total
|
|
% of Total
|
|
$
|
|
%
|
|||||||||
|
|
($ in Millions)
|
|
|
|
($ in Millions)
|
|
|
|
($ in Millions)
|
|
|
|||||||||
Diversified Reinsurance
|
|
$
|
626.5
|
|
|
29.3
|
%
|
|
$
|
602.7
|
|
|
29.8
|
%
|
|
$
|
23.8
|
|
|
4.0
|
%
|
AmTrust Reinsurance
|
|
1,507.4
|
|
|
70.7
|
%
|
|
1,423.1
|
|
|
70.2
|
%
|
|
84.3
|
|
|
5.9
|
%
|
|||
Total reportable segments
|
|
$
|
2,133.9
|
|
|
100.0
|
%
|
|
$
|
2,025.8
|
|
|
100.0
|
%
|
|
$
|
108.1
|
|
|
5.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended September 30,
|
|
2016
|
|
2015
|
|
Change in
|
|||||||||||||||
|
|
Total
|
|
% of Total
|
|
Total
|
|
% of Total
|
|
$
|
|
%
|
|||||||||
|
|
($ in Millions)
|
|
|
|
($ in Millions)
|
|
|
|
($ in Millions)
|
|
|
|||||||||
Diversified Reinsurance
|
|
$
|
175.2
|
|
|
25.1
|
%
|
|
$
|
193.2
|
|
|
29.3
|
%
|
|
$
|
(18.0
|
)
|
|
(9.4
|
)%
|
AmTrust Reinsurance
|
|
523.1
|
|
|
74.9
|
%
|
|
465.3
|
|
|
70.7
|
%
|
|
57.8
|
|
|
12.4
|
%
|
|||
Total reportable segments
|
|
$
|
698.3
|
|
|
100.0
|
%
|
|
$
|
658.5
|
|
|
100.0
|
%
|
|
$
|
39.8
|
|
|
6.0
|
%
|
For the Nine Months Ended September 30,
|
|
2016
|
|
2015
|
|
Change in
|
|||||||||||||||
|
|
Total
|
|
% of Total
|
|
Total
|
|
% of Total
|
|
$
|
|
%
|
|||||||||
|
|
($ in Millions)
|
|
|
|
($ in Millions)
|
|
|
|
($ in Millions)
|
|
|
|||||||||
Diversified Reinsurance
|
|
$
|
538.1
|
|
|
27.6
|
%
|
|
$
|
570.7
|
|
|
30.9
|
%
|
|
$
|
(32.6
|
)
|
|
(5.7
|
)%
|
AmTrust Reinsurance
|
|
1,413.7
|
|
|
72.4
|
%
|
|
1,274.5
|
|
|
69.1
|
%
|
|
139.2
|
|
|
10.9
|
%
|
|||
Total reportable segments
|
|
$
|
1,951.8
|
|
|
100.0
|
%
|
|
$
|
1,845.2
|
|
|
100.0
|
%
|
|
$
|
106.6
|
|
|
5.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended September 30,
|
|
For the Nine Months Ended September 30,
|
||||||||||||
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
|
|
($ in Millions)
|
|
($ in Millions)
|
||||||||||||
Average investable assets
(1)
|
|
$
|
4,991.5
|
|
|
$
|
4,376.7
|
|
|
$
|
4,842.1
|
|
|
$
|
4,210.6
|
|
Average book yield
(2)
|
|
2.9
|
%
|
|
3.0
|
%
|
|
3.0
|
%
|
|
3.0
|
%
|
|
|
For the Three Months Ended September 30,
|
|
For the Nine Months Ended September 30,
|
||||||||||||
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
|
|
($ in Millions)
|
|
($ in Millions)
|
||||||||||||
General and administrative expenses – segments
|
|
$
|
9.8
|
|
|
$
|
8.9
|
|
|
$
|
29.0
|
|
|
$
|
28.2
|
|
General and administrative expenses – corporate
|
|
7.2
|
|
|
7.6
|
|
|
20.7
|
|
|
20.8
|
|
||||
Total general and administrative expenses
|
|
$
|
17.0
|
|
|
$
|
16.5
|
|
|
$
|
49.7
|
|
|
$
|
49.0
|
|
General and administrative expense ratio
|
|
2.4
|
%
|
|
2.5
|
%
|
|
2.5
|
%
|
|
2.7
|
%
|
|
|
For the Three Months Ended September 30,
|
|
For the Nine Months Ended September 30,
|
||||||||||||
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
|
|
($ in Millions)
|
||||||||||||||
Gross premiums written
|
|
$
|
186.8
|
|
|
$
|
174.3
|
|
|
$
|
667.4
|
|
|
$
|
631.3
|
|
Net premiums written
|
|
$
|
179.1
|
|
|
$
|
163.7
|
|
|
$
|
626.5
|
|
|
$
|
602.7
|
|
Net premiums earned
|
|
$
|
175.2
|
|
|
$
|
193.2
|
|
|
$
|
538.1
|
|
|
$
|
570.7
|
|
Other insurance revenue
|
|
2.3
|
|
|
2.2
|
|
|
8.7
|
|
|
9.4
|
|
||||
Net loss and LAE
|
|
(132.4
|
)
|
|
(142.5
|
)
|
|
(395.7
|
)
|
|
(417.9
|
)
|
||||
Commission and other acquisition expenses
|
|
(39.9
|
)
|
|
(51.7
|
)
|
|
(139.9
|
)
|
|
(152.3
|
)
|
||||
General and administrative expenses
|
|
(9.0
|
)
|
|
(8.2
|
)
|
|
(26.7
|
)
|
|
(26.0
|
)
|
||||
Underwriting loss
|
|
$
|
(3.8
|
)
|
|
$
|
(7.0
|
)
|
|
$
|
(15.5
|
)
|
|
$
|
(16.1
|
)
|
Ratios
|
|
|
|
|
|
|
|
|
||||||||
Net loss and LAE ratio
|
|
74.6
|
%
|
|
72.9
|
%
|
|
72.4
|
%
|
|
72.0
|
%
|
||||
Commission and other acquisition expense ratio
|
|
22.5
|
%
|
|
26.5
|
%
|
|
25.6
|
%
|
|
26.3
|
%
|
||||
General and administrative expense ratio
|
|
5.1
|
%
|
|
4.2
|
%
|
|
4.8
|
%
|
|
4.5
|
%
|
||||
Expense ratio
|
|
27.6
|
%
|
|
30.7
|
%
|
|
30.4
|
%
|
|
30.8
|
%
|
||||
Combined ratio
|
|
102.2
|
%
|
|
103.6
|
%
|
|
102.8
|
%
|
|
102.8
|
%
|
For the Three Months Ended September 30,
|
|
2016
|
|
2015
|
|
Change in
|
|||||||||||||||
|
|
Total
|
|
% of Total
|
|
Total
|
|
% of Total
|
|
$
|
|
%
|
|||||||||
Net Premiums Written
|
|
($ in Millions)
|
|
|
|
($ in Millions)
|
|
|
|
($ in Millions)
|
|
|
|||||||||
Property
|
|
$
|
30.6
|
|
|
17.1
|
%
|
|
$
|
29.6
|
|
|
18.1
|
%
|
|
$
|
1.0
|
|
|
3.5
|
%
|
Casualty
|
|
115.4
|
|
|
64.4
|
%
|
|
101.2
|
|
|
61.8
|
%
|
|
14.2
|
|
|
14.0
|
%
|
|||
Accident and Health
|
|
14.8
|
|
|
8.3
|
%
|
|
12.9
|
|
|
7.9
|
%
|
|
1.9
|
|
|
14.9
|
%
|
|||
International
|
|
18.3
|
|
|
10.2
|
%
|
|
20.0
|
|
|
12.2
|
%
|
|
(1.7
|
)
|
|
(8.7
|
)%
|
|||
Total Diversified Reinsurance
|
|
$
|
179.1
|
|
|
100.0
|
%
|
|
$
|
163.7
|
|
|
100.0
|
%
|
|
$
|
15.4
|
|
|
9.4
|
%
|
For the Nine Months Ended September 30,
|
|
2016
|
|
2015
|
|
Change in
|
|||||||||||||||
|
|
Total
|
|
% of Total
|
|
Total
|
|
% of Total
|
|
$
|
|
%
|
|||||||||
Net Premiums Written
|
|
($ in Millions)
|
|
|
|
($ in Millions)
|
|
|
|
($ in Millions)
|
|
|
|||||||||
Property
|
|
$
|
124.0
|
|
|
19.8
|
%
|
|
$
|
128.5
|
|
|
21.3
|
%
|
|
$
|
(4.5
|
)
|
|
(3.5
|
)%
|
Casualty
|
|
365.3
|
|
|
58.3
|
%
|
|
359.5
|
|
|
59.7
|
%
|
|
5.8
|
|
|
1.6
|
%
|
|||
Accident and Health
|
|
68.1
|
|
|
10.9
|
%
|
|
53.5
|
|
|
8.9
|
%
|
|
14.6
|
|
|
27.4
|
%
|
|||
International
|
|
69.1
|
|
|
11.0
|
%
|
|
61.2
|
|
|
10.1
|
%
|
|
7.9
|
|
|
12.8
|
%
|
|||
Total Diversified Reinsurance
|
|
$
|
626.5
|
|
|
100.0
|
%
|
|
$
|
602.7
|
|
|
100.0
|
%
|
|
$
|
23.8
|
|
|
4.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended September 30,
|
|
2016
|
|
2015
|
|
Change in
|
|||||||||||||||
|
|
Total
|
|
% of Total
|
|
Total
|
|
% of Total
|
|
$
|
|
%
|
|||||||||
Net Premiums Earned
|
|
($ in Millions)
|
|
|
|
($ in Millions)
|
|
|
|
($ in Millions)
|
|
|
|||||||||
Property
|
|
$
|
29.9
|
|
|
17.1
|
%
|
|
$
|
39.6
|
|
|
20.5
|
%
|
|
$
|
(9.7
|
)
|
|
(24.4
|
)%
|
Casualty
|
|
105.9
|
|
|
60.5
|
%
|
|
115.6
|
|
|
59.8
|
%
|
|
(9.7
|
)
|
|
(8.4
|
)%
|
|||
Accident and Health
|
|
18.5
|
|
|
10.5
|
%
|
|
14.1
|
|
|
7.3
|
%
|
|
4.4
|
|
|
30.8
|
%
|
|||
International
|
|
20.9
|
|
|
11.9
|
%
|
|
23.9
|
|
|
12.4
|
%
|
|
(3.0
|
)
|
|
(12.5
|
)%
|
|||
Total Diversified Reinsurance
|
|
$
|
175.2
|
|
|
100.0
|
%
|
|
$
|
193.2
|
|
|
100.0
|
%
|
|
$
|
(18.0
|
)
|
|
(9.4
|
)%
|
For the Nine Months Ended September 30,
|
|
2016
|
|
2015
|
|
Change in
|
|||||||||||||||
|
|
Total
|
|
% of Total
|
|
Total
|
|
% of Total
|
|
$
|
|
%
|
|||||||||
Net Premiums Earned
|
|
($ in Millions)
|
|
|
|
($ in Millions)
|
|
|
|
($ in Millions)
|
|
|
|||||||||
Property
|
|
$
|
103.0
|
|
|
19.1
|
%
|
|
$
|
112.9
|
|
|
19.8
|
%
|
|
$
|
(9.9
|
)
|
|
(8.7
|
)%
|
Casualty
|
|
313.7
|
|
|
58.3
|
%
|
|
350.5
|
|
|
61.4
|
%
|
|
(36.8
|
)
|
|
(10.5
|
)%
|
|||
Accident and Health
|
|
55.8
|
|
|
10.4
|
%
|
|
41.4
|
|
|
7.2
|
%
|
|
14.4
|
|
|
34.9
|
%
|
|||
International
|
|
65.6
|
|
|
12.2
|
%
|
|
65.9
|
|
|
11.6
|
%
|
|
(0.3
|
)
|
|
(0.5
|
)%
|
|||
Total Diversified Reinsurance
|
|
$
|
538.1
|
|
|
100.0
|
%
|
|
$
|
570.7
|
|
|
100.0
|
%
|
|
$
|
(32.6
|
)
|
|
(5.7
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended September 30,
|
|
For the Nine Months Ended September 30,
|
||||||||||||
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
|
|
($ in Millions)
|
||||||||||||||
Gross premiums written
|
|
$
|
520.1
|
|
|
$
|
454.2
|
|
|
$
|
1,591.9
|
|
|
$
|
1,505.6
|
|
Net premiums written
|
|
$
|
511.6
|
|
|
$
|
435.5
|
|
|
$
|
1,507.4
|
|
|
$
|
1,423.1
|
|
Net premiums earned
|
|
$
|
523.1
|
|
|
$
|
465.3
|
|
|
$
|
1,413.7
|
|
|
$
|
1,274.5
|
|
Net loss and LAE
|
|
(334.3
|
)
|
|
(297.8
|
)
|
|
(898.7
|
)
|
|
(811.0
|
)
|
||||
Commission and other acquisition expenses
|
|
(166.8
|
)
|
|
(146.0
|
)
|
|
(447.6
|
)
|
|
(399.2
|
)
|
||||
General and administrative expenses
|
|
(0.8
|
)
|
|
(0.7
|
)
|
|
(2.3
|
)
|
|
(2.2
|
)
|
||||
Underwriting income
|
|
$
|
21.2
|
|
|
$
|
20.8
|
|
|
$
|
65.1
|
|
|
$
|
62.1
|
|
Ratios
|
|
|
|
|
|
|
|
|
||||||||
Net loss and LAE ratio
|
|
63.9
|
%
|
|
63.9
|
%
|
|
63.5
|
%
|
|
63.6
|
%
|
||||
Commission and other acquisition expense ratio
|
|
31.9
|
%
|
|
31.4
|
%
|
|
31.7
|
%
|
|
31.3
|
%
|
||||
General and administrative expense ratio
|
|
0.1
|
%
|
|
0.1
|
%
|
|
0.2
|
%
|
|
0.2
|
%
|
||||
Expense ratio
|
|
32.0
|
%
|
|
31.5
|
%
|
|
31.9
|
%
|
|
31.5
|
%
|
||||
Combined ratio
|
|
95.9
|
%
|
|
95.4
|
%
|
|
95.4
|
%
|
|
95.1
|
%
|
For the Three Months Ended September 30,
|
|
2016
|
|
2015
|
|
Change in
|
|||||||||||||||
|
|
Total
|
|
% of Total
|
|
Total
|
|
% of Total
|
|
$
|
|
%
|
|||||||||
Net Premiums Written
|
|
($ in Millions)
|
|
|
|
($ in Millions)
|
|
|
|
($ in Millions)
|
|
|
|||||||||
Small Commercial Business
|
|
$
|
314.7
|
|
|
61.5
|
%
|
|
$
|
231.5
|
|
|
53.1
|
%
|
|
$
|
83.2
|
|
|
36.0
|
%
|
Specialty Program
|
|
98.9
|
|
|
19.3
|
%
|
|
86.6
|
|
|
19.9
|
%
|
|
12.3
|
|
|
14.2
|
%
|
|||
Specialty Risk and Extended Warranty
|
|
98.0
|
|
|
19.2
|
%
|
|
117.4
|
|
|
27.0
|
%
|
|
(19.4
|
)
|
|
(16.5
|
)%
|
|||
Total AmTrust Reinsurance
|
|
$
|
511.6
|
|
|
100.0
|
%
|
|
$
|
435.5
|
|
|
100.0
|
%
|
|
$
|
76.1
|
|
|
17.5
|
%
|
For the Nine Months Ended September 30,
|
|
2016
|
|
2015
|
|
Change in
|
|||||||||||||||
|
|
Total
|
|
% of Total
|
|
Total
|
|
% of Total
|
|
$
|
|
%
|
|||||||||
Net Premiums Written
|
|
($ in Millions)
|
|
|
|
($ in Millions)
|
|
|
|
($ in Millions)
|
|
|
|||||||||
Small Commercial Business
|
|
$
|
983.6
|
|
|
65.3
|
%
|
|
$
|
857.6
|
|
|
60.3
|
%
|
|
$
|
126.0
|
|
|
14.7
|
%
|
Specialty Program
|
|
268.2
|
|
|
17.8
|
%
|
|
262.1
|
|
|
18.4
|
%
|
|
6.1
|
|
|
2.3
|
%
|
|||
Specialty Risk and Extended Warranty
|
|
255.6
|
|
|
16.9
|
%
|
|
303.4
|
|
|
21.3
|
%
|
|
(47.8
|
)
|
|
(15.7
|
)%
|
|||
Total AmTrust Reinsurance
|
|
$
|
1,507.4
|
|
|
100.0
|
%
|
|
$
|
1,423.1
|
|
|
100.0
|
%
|
|
$
|
84.3
|
|
|
5.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended September 30,
|
|
2016
|
|
2015
|
|
Change in
|
|||||||||||||||
|
|
Total
|
|
% of Total
|
|
Total
|
|
% of Total
|
|
$
|
|
%
|
|||||||||
Net Premiums Earned
|
|
($ in Millions)
|
|
|
|
($ in Millions)
|
|
|
|
($ in Millions)
|
|
|
|||||||||
Small Commercial Business
|
|
$
|
320.6
|
|
|
61.3
|
%
|
|
$
|
257.3
|
|
|
55.3
|
%
|
|
$
|
63.3
|
|
|
24.6
|
%
|
Specialty Program
|
|
89.8
|
|
|
17.2
|
%
|
|
80.3
|
|
|
17.3
|
%
|
|
9.5
|
|
|
11.9
|
%
|
|||
Specialty Risk and Extended Warranty
|
|
112.7
|
|
|
21.5
|
%
|
|
127.7
|
|
|
27.4
|
%
|
|
(15.0
|
)
|
|
(11.8
|
)%
|
|||
Total AmTrust Reinsurance
|
|
$
|
523.1
|
|
|
100.0
|
%
|
|
$
|
465.3
|
|
|
100.0
|
%
|
|
$
|
57.8
|
|
|
12.4
|
%
|
For the Nine Months Ended September 30,
|
|
2016
|
|
2015
|
|
Change in
|
|||||||||||||||
|
|
Total
|
|
% of Total
|
|
Total
|
|
% of Total
|
|
$
|
|
%
|
|||||||||
Net Premiums Earned
|
|
($ in Millions)
|
|
|
|
($ in Millions)
|
|
|
|
($ in Millions)
|
|
|
|||||||||
Small Commercial Business
|
|
$
|
864.7
|
|
|
61.2
|
%
|
|
$
|
734.7
|
|
|
57.7
|
%
|
|
$
|
130.0
|
|
|
17.7
|
%
|
Specialty Program
|
|
251.5
|
|
|
17.8
|
%
|
|
210.7
|
|
|
16.5
|
%
|
|
40.8
|
|
|
19.4
|
%
|
|||
Specialty Risk and Extended Warranty
|
|
297.5
|
|
|
21.0
|
%
|
|
329.1
|
|
|
25.8
|
%
|
|
(31.6
|
)
|
|
(9.6
|
)%
|
|||
Total AmTrust Reinsurance
|
|
$
|
1,413.7
|
|
|
100.0
|
%
|
|
$
|
1,274.5
|
|
|
100.0
|
%
|
|
$
|
139.2
|
|
|
10.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Nine Months Ended September 30,
|
|
2016
|
|
2015
|
||||
|
|
($ in Millions)
|
||||||
Operating activities
|
|
$
|
326.2
|
|
|
$
|
526.0
|
|
Investing activities
|
|
(291.4
|
)
|
|
(470.7
|
)
|
||
Financing activities
|
|
(59.7
|
)
|
|
(44.4
|
)
|
||
Effect of exchange rate changes on foreign currency cash
|
|
2.7
|
|
|
(1.5
|
)
|
||
Total (decrease) increase in cash and cash equivalents
|
|
$
|
(22.2
|
)
|
|
$
|
9.4
|
|
|
|
September 30, 2016
|
|
December 31, 2015
|
Fixed maturities and cash and cash equivalents
|
|
4.1
|
|
4.7
|
Reserve for loss and LAE
|
|
4.2
|
|
4.4
|
September 30, 2016
|
|
Original or
Amortized Cost |
|
Gross
Unrealized Gains |
|
Gross
Unrealized Losses |
|
Fair
Value |
|
Average yield*
|
|
Average duration
|
|||||||||
|
|
($ in Millions)
|
|
|
|
|
|||||||||||||||
AFS fixed maturities
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
U.S. treasury bonds
|
|
$
|
5.2
|
|
|
$
|
0.3
|
|
|
$
|
—
|
|
|
$
|
5.5
|
|
|
3.0
|
%
|
|
2.6 years
|
U.S. agency bonds – mortgage-backed
|
|
1,572.4
|
|
|
34.1
|
|
|
(0.7
|
)
|
|
1,605.8
|
|
|
2.7
|
%
|
|
3.6 years
|
||||
U.S. agency bonds – other
|
|
4.2
|
|
|
0.4
|
|
|
—
|
|
|
4.6
|
|
|
5.8
|
%
|
|
9.0 years
|
||||
Non-U.S. government and supranational bonds
|
|
35.6
|
|
|
0.3
|
|
|
(3.2
|
)
|
|
32.7
|
|
|
2.5
|
%
|
|
3.6 years
|
||||
Asset-backed securities
|
|
205.6
|
|
|
7.3
|
|
|
(0.1
|
)
|
|
212.8
|
|
|
3.8
|
%
|
|
2.3 years
|
||||
Corporate bonds
|
|
1,775.7
|
|
|
75.2
|
|
|
(31.7
|
)
|
|
1,819.2
|
|
|
3.4
|
%
|
|
5.1 years
|
||||
Municipal bonds
|
|
62.2
|
|
|
5.5
|
|
|
—
|
|
|
67.7
|
|
|
4.2
|
%
|
|
6.7 years
|
||||
Total AFS fixed maturities
|
|
3,660.9
|
|
|
123.1
|
|
|
(35.7
|
)
|
|
3,748.3
|
|
|
3.1
|
%
|
|
4.3 years
|
||||
HTM fixed maturities
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Corporate bonds
|
|
760.0
|
|
|
38.9
|
|
|
(0.8
|
)
|
|
798.1
|
|
|
3.6
|
%
|
|
5.3 years
|
||||
Total HTM fixed maturities
|
|
760.0
|
|
|
38.9
|
|
|
(0.8
|
)
|
|
798.1
|
|
|
|
|
|
|||||
Cash and cash equivalents
|
|
434.0
|
|
|
—
|
|
|
—
|
|
|
434.0
|
|
|
0.2
|
%
|
|
0.0 years
|
||||
Total
|
|
$
|
4,854.9
|
|
|
$
|
162.0
|
|
|
$
|
(36.5
|
)
|
|
$
|
4,980.4
|
|
|
2.9
|
%
|
|
4.1 years
|
December 31, 2015
|
|
Original or
Amortized Cost |
|
Gross
Unrealized Gains |
|
Gross
Unrealized Losses |
|
Fair
Value |
|
Average yield*
|
|
Average duration
|
|||||||||
|
|
($ in Millions)
|
|
|
|
|
|||||||||||||||
AFS fixed maturities
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
U.S. treasury bonds
|
|
$
|
5.7
|
|
|
$
|
0.3
|
|
|
$
|
—
|
|
|
$
|
6.0
|
|
|
2.9
|
%
|
|
2.5 years
|
U.S. agency bonds – mortgage-backed
|
|
1,471.8
|
|
|
15.4
|
|
|
(10.2
|
)
|
|
1,477.0
|
|
|
2.8
|
%
|
|
4.5 years
|
||||
U.S. agency bonds – other
|
|
23.8
|
|
|
0.5
|
|
|
—
|
|
|
24.3
|
|
|
3.6
|
%
|
|
8.5 years
|
||||
Non-U.S. government and supranational bonds
|
|
35.1
|
|
|
—
|
|
|
(4.6
|
)
|
|
30.5
|
|
|
2.6
|
%
|
|
4.0 years
|
||||
Asset-backed securities
|
|
165.7
|
|
|
1.2
|
|
|
(1.1
|
)
|
|
165.8
|
|
|
4.1
|
%
|
|
4.6 years
|
||||
Corporate bonds
|
|
1,798.6
|
|
|
38.1
|
|
|
(97.0
|
)
|
|
1,739.7
|
|
|
3.8
|
%
|
|
5.0 years
|
||||
Municipal bonds
|
|
62.2
|
|
|
2.6
|
|
|
—
|
|
|
64.8
|
|
|
4.2
|
%
|
|
6.3 years
|
||||
Total AFS fixed maturities
|
|
3,562.9
|
|
|
58.1
|
|
|
(112.9
|
)
|
|
3,508.1
|
|
|
3.4
|
%
|
|
4.8 years
|
||||
HTM fixed maturities
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Corporate bonds
|
|
607.8
|
|
|
3.5
|
|
|
(12.3
|
)
|
|
599.0
|
|
|
3.9
|
%
|
|
6.4 years
|
||||
Total HTM fixed maturities
|
|
607.8
|
|
|
3.5
|
|
|
(12.3
|
)
|
|
599.0
|
|
|
|
|
|
|||||
Cash and cash equivalents
|
|
332.5
|
|
|
—
|
|
|
—
|
|
|
332.5
|
|
|
0.2
|
%
|
|
0.0 years
|
||||
Total
|
|
$
|
4,503.2
|
|
|
$
|
61.6
|
|
|
$
|
(125.2
|
)
|
|
$
|
4,439.6
|
|
|
3.2
|
%
|
|
4.7 years
|
|
|
September 30, 2016
|
|
December 31, 2015
|
||||||||||||
|
|
AFS fixed maturities
|
|
HTM fixed maturities
|
|
AFS fixed maturities
|
|
HTM fixed maturities
|
||||||||
Maturity
|
|
Fair value
|
|
Amortized cost
|
|
Fair value
|
|
Amortized cost
|
||||||||
|
|
($ in Millions)
|
|
($ in Millions)
|
||||||||||||
Due in one year or less
|
|
$
|
120.3
|
|
|
$
|
—
|
|
|
$
|
180.4
|
|
|
$
|
—
|
|
Due after one year through five years
|
|
486.5
|
|
|
223.3
|
|
|
475.1
|
|
|
67.3
|
|
||||
Due after five years through ten years
|
|
1,308.2
|
|
|
531.6
|
|
|
1,180.2
|
|
|
540.5
|
|
||||
Due after ten years
|
|
14.7
|
|
|
5.1
|
|
|
29.6
|
|
|
—
|
|
||||
|
|
1,929.7
|
|
|
760.0
|
|
|
1,865.3
|
|
|
607.8
|
|
||||
U.S. agency bonds – mortgage-backed
|
|
1,605.8
|
|
|
—
|
|
|
1,477.0
|
|
|
—
|
|
||||
Asset-backed securities
|
|
212.8
|
|
|
—
|
|
|
165.8
|
|
|
—
|
|
||||
Total fixed maturities
|
|
$
|
3,748.3
|
|
|
$
|
760.0
|
|
|
$
|
3,508.1
|
|
|
$
|
607.8
|
|
|
|
September 30, 2016
|
|
December 31, 2015
|
||||||||||
|
|
Fair Value
|
|
% of Total
|
|
Fair Value
|
|
% of Total
|
||||||
|
|
($ in Millions)
|
|
|
|
($ in Millions)
|
|
|
||||||
U.S. agency bonds - mortgage-backed:
|
|
|
|
|
|
|
|
|
||||||
Residential mortgage-backed (RMBS)
|
|
|
|
|
|
|
|
|
||||||
GNMA – fixed rate
|
|
$
|
340.1
|
|
|
21.1
|
%
|
|
$
|
139.5
|
|
|
9.3
|
%
|
FNMA – fixed rate
|
|
711.4
|
|
|
44.2
|
%
|
|
791.7
|
|
|
52.7
|
%
|
||
FNMA – variable rate
|
|
18.7
|
|
|
1.2
|
%
|
|
22.1
|
|
|
1.5
|
%
|
||
FHLMC – fixed rate
|
|
530.1
|
|
|
32.9
|
%
|
|
517.3
|
|
|
34.5
|
%
|
||
FHLMC – variable rate
|
|
5.5
|
|
|
0.3
|
%
|
|
6.4
|
|
|
0.4
|
%
|
||
Total U.S. agency bonds - mortgage-backed
|
|
1,605.8
|
|
|
99.7
|
%
|
|
1,477.0
|
|
|
98.4
|
%
|
||
Non-MBS fixed rate U.S. agency bonds
|
|
4.6
|
|
|
0.3
|
%
|
|
24.3
|
|
|
1.6
|
%
|
||
Total U.S. agency bonds
|
|
$
|
1,610.4
|
|
|
100.0
|
%
|
|
$
|
1,501.3
|
|
|
100.0
|
%
|
For the Three Months Ended September 30,
|
|
2016
|
|
2015
|
||||
|
|
($ in Millions)
|
||||||
U.S. agency bonds - mortgage-backed:
|
|
|
|
|
||||
Beginning balance
|
|
$
|
1,451.8
|
|
|
$
|
1,388.3
|
|
Purchases
|
|
267.0
|
|
|
—
|
|
||
Sales and paydowns
|
|
(104.1
|
)
|
|
(78.2
|
)
|
||
Net realized gains on sales – included in net income
|
|
—
|
|
|
—
|
|
||
Change in net unrealized gains – included in other comprehensive income
|
|
(7.1
|
)
|
|
15.0
|
|
||
Amortization of bond premium and discount
|
|
(1.8
|
)
|
|
(1.6
|
)
|
||
Ending balance
|
|
$
|
1,605.8
|
|
|
$
|
1,323.5
|
|
For the Nine Months Ended September 30,
|
|
2016
|
|
2015
|
||||
|
|
($ in Millions)
|
||||||
U.S. agency bonds - mortgage-backed:
|
|
|
|
|
||||
Beginning balance
|
|
$
|
1,477.0
|
|
|
$
|
1,322.4
|
|
Purchases
|
|
366.4
|
|
|
356.6
|
|
||
Sales and paydowns
|
|
(261.2
|
)
|
|
(363.5
|
)
|
||
Net realized gains on sales – included in net income
|
|
0.2
|
|
|
0.1
|
|
||
Change in net unrealized gains – included in other comprehensive income
|
|
28.2
|
|
|
12.1
|
|
||
Amortization of bond premium and discount
|
|
(4.8
|
)
|
|
(4.2
|
)
|
||
Ending balance
|
|
$
|
1,605.8
|
|
|
$
|
1,323.5
|
|
|
|
|
|
|
|
|
Ratings*
|
|
|
|
|
||||||||||||||||
September 30, 2016
|
|
AAA
|
|
AA+, AA, AA-
|
|
A+, A, A-
|
|
BBB+, BBB, BBB-
|
|
BB+ or lower
|
|
Fair Value
|
|
% of Corporate bonds portfolio
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
($ in Millions)
|
|
|
||||||||
Corporate bonds
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Basic Materials
|
|
—
|
%
|
|
—
|
%
|
|
1.6
|
%
|
|
4.4
|
%
|
|
2.4
|
%
|
|
$
|
218.9
|
|
|
8.4
|
%
|
Communications
|
|
—
|
%
|
|
0.5
|
%
|
|
1.0
|
%
|
|
7.1
|
%
|
|
—
|
%
|
|
224.0
|
|
|
8.6
|
%
|
|
Consumer
|
|
—
|
%
|
|
0.9
|
%
|
|
14.3
|
%
|
|
8.0
|
%
|
|
0.3
|
%
|
|
615.2
|
|
|
23.5
|
%
|
|
Energy
|
|
—
|
%
|
|
0.8
|
%
|
|
3.7
|
%
|
|
2.8
|
%
|
|
2.1
|
%
|
|
246.7
|
|
|
9.4
|
%
|
|
Financial Institutions
|
|
1.6
|
%
|
|
2.5
|
%
|
|
23.0
|
%
|
|
11.5
|
%
|
|
0.2
|
%
|
|
1,015.1
|
|
|
38.8
|
%
|
|
Industrials
|
|
—
|
%
|
|
1.0
|
%
|
|
2.0
|
%
|
|
2.9
|
%
|
|
0.7
|
%
|
|
172.5
|
|
|
6.6
|
%
|
|
Technology
|
|
—
|
%
|
|
2.4
|
%
|
|
1.2
|
%
|
|
0.4
|
%
|
|
0.7
|
%
|
|
124.9
|
|
|
4.7
|
%
|
|
Total Corporate bonds
|
|
1.6
|
%
|
|
8.1
|
%
|
|
46.8
|
%
|
|
37.1
|
%
|
|
6.4
|
%
|
|
$
|
2,617.3
|
|
|
100.0
|
%
|
|
|
Ratings*
|
|
|
|
|
||||||||||||||||
December 31, 2015
|
|
AAA
|
|
AA+, AA, AA-
|
|
A+, A, A-
|
|
BBB+, BBB, BBB-
|
|
BB+ or lower
|
|
Fair Value
|
|
% of Corporate bonds portfolio
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
($ in Millions)
|
|
|
||||||||
Corporate bonds
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Basic Materials
|
|
—
|
%
|
|
—
|
%
|
|
1.1
|
%
|
|
5.4
|
%
|
|
1.3
|
%
|
|
$
|
182.5
|
|
|
7.8
|
%
|
Communications
|
|
—
|
%
|
|
0.6
|
%
|
|
0.8
|
%
|
|
7.7
|
%
|
|
—
|
%
|
|
212.0
|
|
|
9.1
|
%
|
|
Consumer
|
|
—
|
%
|
|
1.0
|
%
|
|
12.3
|
%
|
|
9.3
|
%
|
|
0.3
|
%
|
|
535.2
|
|
|
22.9
|
%
|
|
Energy
|
|
—
|
%
|
|
1.3
|
%
|
|
1.7
|
%
|
|
3.2
|
%
|
|
1.9
|
%
|
|
189.8
|
|
|
8.1
|
%
|
|
Financial Institutions
|
|
1.7
|
%
|
|
1.6
|
%
|
|
23.5
|
%
|
|
14.3
|
%
|
|
0.1
|
%
|
|
963.1
|
|
|
41.2
|
%
|
|
Industrials
|
|
—
|
%
|
|
0.5
|
%
|
|
1.7
|
%
|
|
3.7
|
%
|
|
0.5
|
%
|
|
149.9
|
|
|
6.4
|
%
|
|
Technology
|
|
—
|
%
|
|
2.3
|
%
|
|
1.6
|
%
|
|
0.4
|
%
|
|
0.2
|
%
|
|
106.2
|
|
|
4.5
|
%
|
|
Total Corporate bonds
|
|
1.7
|
%
|
|
7.3
|
%
|
|
42.7
|
%
|
|
44.0
|
%
|
|
4.3
|
%
|
|
$
|
2,338.7
|
|
|
100.0
|
%
|
September 30, 2016
|
|
Fair Value/Amortized cost
|
|
% Based on Carrying Value
Investments |
|
Rating*
|
|||
|
|
($ in Millions)
|
|
|
|
|
|||
Morgan Stanley FLT, Due 10/18/2016
(1)
|
|
$
|
40.0
|
|
|
0.9
|
%
|
|
BBB+
|
Australia and New Zealand Banking Group, 3.7% Due 11/16/2025
|
|
27.4
|
|
|
0.6
|
%
|
|
AA-
|
|
Schlumberger Holdings Corporation, 4.0% Due 12/21/2025
|
|
21.8
|
|
|
0.5
|
%
|
|
AA-
|
|
JP Morgan Chase & Co, 3.9% Due 7/15/2025
|
|
21.6
|
|
|
0.5
|
%
|
|
A-
|
|
BNP Paribas, 5.0% Due 1/15/2021
|
|
21.4
|
|
|
0.5
|
%
|
|
A
|
|
IBM Corporation, 7.0% Due 10/30/2025
|
|
20.9
|
|
|
0.5
|
%
|
|
AA-
|
|
Rabobank, 3.9% Due 2/08/2022
|
|
20.9
|
|
|
0.5
|
%
|
|
A+
|
|
Mondelez International, 4.0% Due 2/1/2024
|
|
20.5
|
|
|
0.4
|
%
|
|
BBB
|
|
Brookfield Asset Management Inc, 4.0%, Due 1/15/2025
|
|
20.5
|
|
|
0.4
|
%
|
|
A-
|
|
AT&T Inc, 2.6%, Due 12/1/2022
|
|
20.3
|
|
|
0.4
|
%
|
|
BBB+
|
|
Total
|
|
$
|
235.3
|
|
|
5.2
|
%
|
|
|
|
|
September 30, 2016
|
|
December 31, 2015
|
||||||||||
|
|
Fair Value
|
|
% of Total
|
|
Fair Value
|
|
% of Total
|
||||||
|
|
($ in Millions)
|
|
|
|
($ in Millions)
|
|
|
||||||
Non-U.S. dollar denominated corporate bonds
|
|
$
|
389.4
|
|
|
92.5
|
%
|
|
$
|
323.3
|
|
|
91.6
|
%
|
Non-U.S. government and supranational bonds
|
|
31.7
|
|
|
7.5
|
%
|
|
30.5
|
|
|
8.4
|
%
|
||
Total non-U.S. dollar AFS fixed maturities
|
|
$
|
421.1
|
|
|
100.0
|
%
|
|
$
|
353.8
|
|
|
100.0
|
%
|
|
|
September 30, 2016
|
|
December 31, 2015
|
||||||||||
|
|
Fair Value
|
|
% of Total
|
|
Fair Value
|
|
% of Total
|
||||||
|
|
($ in Millions)
|
|
|
|
($ in Millions)
|
|
|
||||||
Euro
|
|
$
|
357.4
|
|
|
84.9
|
%
|
|
$
|
299.3
|
|
|
84.8
|
%
|
British pound
|
|
41.8
|
|
|
9.9
|
%
|
|
41.4
|
|
|
11.7
|
%
|
||
Australian dollar
|
|
11.1
|
|
|
2.6
|
%
|
|
4.0
|
|
|
1.1
|
%
|
||
Swedish krona
|
|
5.7
|
|
|
1.4
|
%
|
|
5.8
|
|
|
1.7
|
%
|
||
All other
|
|
5.1
|
|
|
1.2
|
%
|
|
3.3
|
|
|
0.7
|
%
|
||
Total non-U.S. dollar AFS fixed maturities
|
|
$
|
421.1
|
|
|
100.0
|
%
|
|
$
|
353.8
|
|
|
100.0
|
%
|
|
|
September 30, 2016
|
|
December 31, 2015
|
||||||||||
Ratings*
|
|
Fair Value
|
|
% of Total
|
|
Fair Value
|
|
% of Total
|
||||||
|
|
($ in Millions)
|
|
|
|
($ in Millions)
|
|
|
||||||
AAA
|
|
$
|
34.6
|
|
|
8.9
|
%
|
|
$
|
32.8
|
|
|
10.1
|
%
|
AA+, AA, AA-
|
|
33.0
|
|
|
8.5
|
%
|
|
17.3
|
|
|
5.4
|
%
|
||
A+, A, A-
|
|
180.0
|
|
|
46.2
|
%
|
|
149.3
|
|
|
46.2
|
%
|
||
BBB+, BBB, BBB-
|
|
133.5
|
|
|
34.3
|
%
|
|
117.9
|
|
|
36.5
|
%
|
||
BB+ or lower
|
|
8.3
|
|
|
2.1
|
%
|
|
6.0
|
|
|
1.8
|
%
|
||
Total non-U.S. dollar denominated corporate bonds
|
|
$
|
389.4
|
|
|
100.0
|
%
|
|
$
|
323.3
|
|
|
100.0
|
%
|
|
|
September 30, 2016
|
|
December 31, 2015
|
|
Change
|
|
Change
|
|||||||
|
|
($ in Millions)
|
|
%
|
|||||||||||
Reinsurance balances receivable, net
|
|
$
|
535.0
|
|
|
$
|
377.3
|
|
|
$
|
157.7
|
|
|
41.8
|
%
|
Reserve for loss and LAE
|
|
2,759.5
|
|
|
2,510.1
|
|
|
249.4
|
|
|
9.9
|
%
|
|||
Unearned premiums
|
|
1,571.4
|
|
|
1,354.6
|
|
|
216.8
|
|
|
16.0
|
%
|
|
|
September 30, 2016
|
|
December 31, 2015
|
|
Change
|
|
Change
|
|||||||
|
|
($ in Millions)
|
|
%
|
|||||||||||
Preference shares
|
|
$
|
315.0
|
|
|
$
|
480.0
|
|
|
$
|
(165.0
|
)
|
|
(34.4
|
)%
|
Common shareholders' equity
|
|
1,240.3
|
|
|
867.8
|
|
|
372.5
|
|
|
42.9
|
%
|
|||
Total Maiden shareholders' equity
|
|
1,555.3
|
|
|
1,347.8
|
|
|
207.5
|
|
|
15.4
|
%
|
|||
Senior notes
|
|
362.5
|
|
|
360.0
|
|
|
2.5
|
|
|
0.7
|
%
|
|||
Total capital resources
|
|
$
|
1,917.8
|
|
|
$
|
1,707.8
|
|
|
$
|
210.0
|
|
|
12.3
|
%
|
•
|
increase in AOCI of $147.6 million. This increase arose due to: 1) increase of $155.6 million which arose from the net increase in our U.S. dollar denominated investment portfolio of $130.6 million relating to market price movements and the increase in our non-U.S. dollar denominated investment portfolio of $25.0 million. The increase in our non-U.S. dollar denominated investment portfolio was $8.1 million primarily as a result of the strengthening of the euro, relative to U.S. dollar at
September 30, 2016
compared to December 31, 2015, and $16.9 million as a result of market price movements during the
nine months ended
September 30, 2016
. See "
Liquidity and Capital Resources - Investments
" on page 45 for further information; offset by 2) decrease in the cumulative translation adjustment of
$8.0 million
due to the effect of the depreciation of the U.S. dollar relative to the original currencies on our non-U.S. dollar net liabilities (excluding non- U.S. dollar denominated AFS fixed maturities);
|
•
|
net income attributable to Maiden shareholders of $117.7 million. See "
Results of Operations
-
Net Income
" on page 37 for a discussion of the Company’s net income for the
nine months ended
September 30, 2016
;
|
•
|
increase in additional paid in capital of $2.6 million resulting from share-based transactions; and
|
•
|
increase in common shares and additional paid in capital of $165.6 million as result of the conversion of the Company's Preference Shares - Series B into common shares on September 15, 2016 and exercise of options.
|
•
|
dividends declared of $60.5 million on the Company’s common and preference shares during the
nine months ended
September 30, 2016
;
|
•
|
increase in shares repurchased for treasury of $0.5 million which represents withholdings from employees surrendered in respect of tax obligations on the vesting of restricted shares and performance based shares; and
|
•
|
decrease in Preference Shares - Series B of $165.0 million as result of the conversion into common shares on September 15, 2016.
|
Hypothetical Change in Interest Rates
|
|
Fair Value
|
|
Estimated
Change in Fair Value |
|
Hypothetical %
(Decrease) Increase in Shareholders’ Equity |
|||||
|
|
($ in Millions)
|
|
|
|||||||
200 basis point increase
|
|
$
|
3,429.5
|
|
|
$
|
(318.8
|
)
|
|
(20.5
|
)%
|
100 basis point increase
|
|
3,583.8
|
|
|
(164.5
|
)
|
|
(10.6
|
)%
|
||
No change
|
|
3,748.3
|
|
|
—
|
|
|
—
|
%
|
||
100 basis point decrease
|
|
3,913.7
|
|
|
165.4
|
|
|
10.6
|
%
|
||
200 basis point decrease
|
|
4,076.6
|
|
|
328.3
|
|
|
21.1
|
%
|
|
|
September 30, 2016
|
|
December 31, 2015
|
||
Ratings*
|
|
|
||||
AA+ or better
|
|
40.6
|
%
|
|
42.3
|
%
|
AA, AA-, A+, A, A-
|
|
34.1
|
%
|
|
29.9
|
%
|
BBB+, BBB, BBB-
|
|
21.7
|
%
|
|
25.4
|
%
|
BB+ or lower
|
|
3.6
|
%
|
|
2.4
|
%
|
|
|
100.0
|
%
|
|
100.0
|
%
|
|
|
September 30, 2016
|
|
December 31, 2015
|
||
A or better
|
|
97.1
|
%
|
|
99.1
|
%
|
B++ or lower
|
|
2.9
|
%
|
|
0.9
|
%
|
|
|
100.0
|
%
|
|
100.0
|
%
|
Exhibit
No.
|
|
Description
|
10.1
|
|
Endorsement No. 4 to the Amended and Restated Quota Share Reinsurance Contract by and between Maiden Reinsurance Ltd. and AmTrust Europe Limited and/or AmTrust International Underwriters Limited incorporated by reference to Exhibit 10.4 to the Company’s Quarterly Report on Form 10-Q for the period ended June 30, 2011 filed with the SEC on August 8, 2011 (No. 001-34042)
|
31.1
|
|
Section 302 Certification of CEO
|
31.2
|
|
Section 302 Certification of CFO
|
32.1
|
|
Section 906 Certification of CEO
|
32.2
|
|
Section 906 Certification of CFO
|
101.1
|
|
The following materials from Maiden Holdings, Ltd. Quarterly Report on Form 10-Q, formatted in XBRL (eXtensive Business Reporting Language): (i) the unaudited Condensed Consolidated Balance Sheets, (ii) the unaudited Condensed Consolidated Statements of Income, (iii) the unaudited Condensed Consolidated Statements of Comprehensive Income, (iv) the unaudited Condensed Consolidated Statements of Changes in Shareholders' Equity, (v) the unaudited Condensed Consolidated Statements of Cash Flows, and (vi) Notes to unaudited Condensed Consolidated Financial Statements.
|
|
MAIDEN HOLDINGS, LTD.
|
|
|
By:
|
|
November 8, 2016
|
|
/s/ Arturo M. Raschbaum
|
|
|
Arturo M. Raschbaum
President and Chief Executive Officer
|
|
|
|
|
|
/s/ Karen L. Schmitt
|
|
|
Karen L. Schmitt
Chief Financial Officer
|
|
|
|
|
|
/s/ Michael J. Tait
|
|
|
Michael J. Tait
Chief Accounting Officer
|
1.
|
The section of the Contract entitled “Treaty Detail,” as previously amended by Endorsement 2 and Endorsement 3 to the Contract, shall be deleted and the following substituted therefor:
|
(a)
|
in respect of AmTrust International Underwriters Limited, Eire, forty percent (40%) of all business written or renewed with effect from the inception of the Contract until such time as otherwise agreed in writing between the parties;
|
(b)
|
in respect of AmTrust Europe Limited, forty percent (40%) of all business written or renewed with effect from the inception of the Contract until 30 June 2016, thirty-two and a half percent (32.5%) of all business written or renewed on or after 1 July 2016 until 30 June 2017, and twenty percent (20%) of all business written or renewed on or after 1 July 2017 until such time as otherwise agreed in writing between the parties.
|
1.
|
I have reviewed this quarterly report on Form 10-Q of Maiden Holdings, Ltd.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f) for the registrant and have:
|
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including any consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles.
|
|
(c)
|
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
|
(d)
|
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
5.
|
The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
|
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
November 8, 2016
|
|
/s/ ARTURO M. RASCHBAUM
|
|
|
|
Arturo M. Raschbaum
|
|
|
|
President and Chief Executive Officer
|
|
|
|
(Principal Executive Officer)
|
|
1.
|
I have reviewed this quarterly report on Form 10-Q of Maiden Holdings, Ltd.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including any consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles.
|
|
(c)
|
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
|
(d)
|
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
5.
|
The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
|
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
November 8, 2016
|
|
/s/ KAREN L. SCHMITT
|
|
|
|
Karen L. Schmitt
|
|
|
|
Chief Financial Officer
|
|
|
|
(Principal Financial and Accounting Officer)
|
|
November 8, 2016
|
By:
|
/s/ ARTURO M. RASCHBAUM
|
|
|
|
Arturo M. Raschbaum
|
|
|
|
President and Chief Executive Officer
|
|
November 8, 2016
|
By:
|
/s/ KAREN L. SCHMITT
|
|
|
|
Karen L. Schmitt
|
|
|
|
Chief Financial Officer
|
|