On Mar 25, 2015, shares of
Maiden Holdings, Ltd.
scaled a 52-week high of $14.95 per share on the back of solid
fourth quarter 2014 performance.
The year-to-date return from the stock came in at 12.2%, which was
significantly higher than Nasdaq's return of 2.9%.
Strong Fourth-Quarter Results
Maiden Holdings' fourth-quarter 2014 operating net earnings of 44
cents per share beat the Zacks Consensus Estimate of 39 cents by
12.8%. Earnings improved 47% year over year.
An improved top line offset the increase in expenses leading to the
stellar performance in the quarter. The company continues to
increase its active client count, expand existing client
relationships and grow the invested asset base.
Total revenue in the quarter increased 23.7% year over year to
$641.9 million. Higher premiums written and increased investment
income led to the improvement in revenues generated. The reported
results also outperformed the Zacks Consensus Estimate of $613
The continued rate increases in workers' compensation as well as
new business from the Tower Group renewal rights transaction in
AmTrust Quota Share Reinsurance segment led to the rise in net
premiums written during the quarter. However, this was offset by
lower premiums written at the Diversified Reinsurance segment. The
results at the Diversified Reinsurance segment were in turn
attributable to one-time increase experienced in Europe due to
promotional offers in the year-ago quarter.
Despite lower interest rates, the property and casualty insurer
successfully deployed cash for productive investments throughout
the year, while adhering to a low volatility fixed-income
investment strategy. This resulted in a record net income in the
Additionally, the company continues to target the Original
Equipment Automobile Manufacturer market in Europe. Furthermore, it
has successfully positioned itself for new business in 2015 and
beyond with commitments from new clients and expanded relationships
with its existing insurer partners.
Moreover, the company remains focused in providing capital
solutions in advance of risk-based capital standards, thereby
expanding its international footprint. The company expects the
implementation of Solvency II -- a regulatory regime which seeks to
promote financial stability, enhance transparency and facilitate
harmonization among insurance and reinsurance companies to pave the
way for numerous opportunities in 2016.
Currently, Maiden Holdings carries a Zacks Rank #3 (Hold).
Other Stocks to Consider
Better-ranked stocks from the property and casualty insurance space
include Allied World Assurance Company Holdings, AG
, Arch Capital Group Ltd.
and Fidelity National Financial, Inc.
. All of these stocks sport a Zacks Rank #1 (Strong Buy).
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MAIDEN HOLDINGS (MHLD): Free Stock Analysis
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