Maiden Holdings Ltd.
) reported second quarter 2013 operating earnings of 28 cents per
share that exceeded the Zacks Consensus Estimate of 26 cents per
share by 7.7%. Earnings also exceeded the year-ago earnings of 27
cents per share.
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Including net realized losses on investment and amortization of
intangible assets, Maiden reported net income of 27 cents per
share during the reported quarter, up 35% from 20 cents reported
in the year-ago quarter.
Improved underwriting performance and absence of any adverse
impact from catastrophe events during the quarter mainly led to
the upside. Additionally, favorable North American pricing
environment led to robust growth in the AmTrust segment which
also contributed to the improvement.
Quarterly Operational Update
Total revenue of Maiden during the second quarter increased 17.6%
year over year to $536.7 million. Higher premiums and increased
investment income shored up the revenues. However, revenues
lagged the Zacks Consensus Estimate of $541 million.
Net premiums written during the quarter increased 20.9% to $497.9
million mainly led by growth in the AmTrust Quota Share
Reinsurance segment. Growth in the AmTrust Quota Share
Reinsurance segment was driven by acquisition activities and by
internal premium increases, especially in the workers'
compensation line. However, this was partially tempered by a 6.3%
decline in net premiums written in the Diversified Reinsurance
Net investment income of Maiden in the second quarter of 2013 was
$20.7 million, up 3.3% year over year. Going forward, higher
interest rates are expected to push up net investment income of
the company further.
Total expenses during the quarter increased 17.1% year over year
to $503.7 million reflecting higher loss and loss adjustment
expenses, commissions and other acquisition expenses.
Combined ratio for the second quarter of 2013 improved 30 basis
points year over year to 97.6% owing to absence of any adverse
impact from catastrophe losses during the quarter.
On Aug 7, 2013, Maiden declared a quarterly dividend of 9 cents
per share which will be paid on Oct 15, 2013 to shareholders of
record at Oct 1, 2013.
Additionally, Maiden declared a cash dividend of 52 cents per
preferred share of the company. The dividend will be paid on Sept
16, 2013 to shareholders of record as of Sept 1, 2013.
As of Jun 30, 2013, Markel had cash and cash equivalents of $2.8
billion compared to $2.7 billion as of Mar 31, 2013.
As of Jun 30, 2013, Maiden had assets worth $4.40 billion, down
from $4.42 billion as of Mar 31, 2013.
Shareholders' equity as of Jun 30, 2013 was $956.8 million,
compared to $1 billion as of Mar 31, 2013. Return on equity (ROE)
of Maiden for the first half of the year stood at 10%, compared
to 9.9% for the first half of 2012. Book value as of Jun 30, 2013
was $11.12 per share compared to $12.10 as of Mar 31, 2013.
Performance of Other Insurers
On Jul 23, 2013,
) reported second quarter 2013 operating net income of $2.29 per
share, up 19.3% from the Zacks Consensus Estimate of $1.92.
Results improved 5.5% from $2.17 earned in the year-ago quarter.
On Jul 25, 2013,
) reported second-quarter operating earnings of $1.77 per share,
significantly ahead of the Zacks Consensus Estimate of $1.38 per
share. Earnings also increased 29% year over year.
On Aug 2, 2013,
Berkshire Hathaway Inc.
) reported second quarter 2013 operating earnings of $1.53 per
share, surpassing the Zack Consensus estimate of $1.45 per share.
Earnings also compared favorably with $1.50 per share reported in
the year-ago quarter.
Maiden carries a Zacks Rank #3 (Hold).