Maiden Holdings, Ltd. (MHLD) has reported a 28.11 percent fall in profit for the quarter ended Mar. 31, 2017. The company has earned $26.52 million, or $0.23 a share in the quarter, compared with $36.89 million, or $0.35 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $22.64 million, or $0.26 a share compared with $28.35 million or $0.37 a share, a year ago.
Revenue during the quarter grew 14.69 percent to $756.31 million from $659.41 million in the previous year period. Net premium earned for the quarter increased 15.17 percent or $93.48 million to $709.48 million. During the quarter, the company has written premium worth $900.55 million on net basis, up 13.59 percent or $107.72 million.
Total expenses move up
Benefits, losses and expenses for the quarter were at $720.01 million, or 101.48 percent of premium earned from $614.18 million or 99.70 percent of premium earned in the last year period. Operating income for the quarter was $36.30 million, compared with $45.23 million in the previous year period.
However, the adjusted operating income for the quarter stood at $36.30 million compared to $45.23 million in the prior year period. At the same time, adjusted operating margin contracted 206 basis points in the quarter to 4.80 percent from 6.86 percent in the last year period.
The company has recorded a gain on investments of $0.88 million in the quarter compared with a gain of $2.28 million for the previous year period.
Commenting on the Company's results, Art Raschbaum, chief executive officer of Maiden, said: 'Notwithstanding a challenging operating environment, Maiden's results improved significantly from the Company's fourth quarter 2016 underwriting loss. While the aggregate combined ratio for the quarter was 100.9%, it reflects the impact of more conservative initial expected loss ratios for the AmTrust master quota share as well as higher than anticipated losses in the quarter from select casualty lines. Gross revenues increased by 6.9% across our two operating segments while investment income also reflected strong year-on-year growth of 16.1%. We believe that we are well positioned to continue to further strengthen returns for the balance of the year while continuing to implement new business initiatives across the Company."
Liabilities outpace assets growth
Total assets increased 7.15 percent or $437.29 million to $6,556.96 million on Mar. 31, 2017. On the other hand, total liabilities were at $5,186.86 million as on Mar. 31, 2017, up 11.32 percent or $527.46 million from year-ago.
Return on assets stood at 0.40 percent in the quarter, down 0.32 from 0.72 percent in the last year period. At the same time, return on equity was at 1.50 percent in the quarter, down 0.37 from 1.86 percent in the last year period.
Investments move up
Investments stood at $4,732 million as on Mar. 31, 2017, up 9.39 percent or $406.13 million from year-ago.
Meanwhile, reinsurance recoverables moved up 30.25 percent or $25.26 million over the year to $108.78 million on Mar. 31, 2017.
Total debt was almost stable over the past one year at $351.49 million on Mar. 31, 2017. Shareholders equity stood at $1,370.10 million as on Mar. 31, 2017, down 6.18 percent or $90.18 million from year-ago. As a result, debt to equity ratio went up 2 basis points to 0.26 percent in the quarter from 0.24 percent in the last year period.
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