Maiden Holdings, Ltd. (MHLD) swung to a net loss for the quarter ended Dec. 31, 2016. The company has made a net loss of $68.70 million, or $ 0.87 a share in the quarter, against a net profit of $30.80 million, or $0.32 a share in the last year period. On an adjusted basis, net loss for the quarter stood at $69.68 million, or $0.81 a share compared with a net profit of $26.40 million, or $0.34 a share in the last year period.
Revenue during the quarter grew 6.18 percent to $659.28 million from $620.92 million in the previous year period. Net premium earned for the quarter increased 5.56 percent or $32.49 million to $616.30 million. During the quarter, the company has written premium worth $521.04 million on net basis, up 6.69 percent or $32.68 million.
Total expenses move up
Benefits, losses and expenses for the quarter were at $725.95 million, or 117.79 percent of premium earned from $585.50 million or 100.29 percent of premium earned in the last year period. Operating loss for the quarter was $66.67 million, compared with an operating income of $35.41 million in the previous year period. The company has recorded a gain on investments of $2.26 million in the quarter compared with a gain of $0.17 million for the previous year period.
Commenting on the Company's results, Art Raschbaum, chief executive officer of Maiden, said: "Despite the significant challenges presented in the commercial auto business, we reported a modest profit for the year and have continued to grow our business and investable assets while strengthening investment income. We remain focused on improving the profitability of our business and believe the fourth quarter reserve charge will help us to stabilize underwriting performance as we enter 2017. Importantly, our 2016 underwriting year expected loss ratios reflect solid profitability. While the market remains competitive, we were able to expand our business in 2016 by leveraging our strong franchise and value-added products and services. We believe our prospects for continued disciplined growth are strong. Additionally, we are in an excellent position to improve our cost of capital, and will explore opportunities to refinance our existing indebtedness in 2017 at an improved rate."
Liabilities outpace assets growth
Total assets increased 9.62 percent or $548.72 million to $6,252.30 million on Dec. 31, 2016. On the other hand, total liabilities were at $4,891.15 million as on Dec. 31, 2016, up 12.32 percent or $536.67 million from year-ago. Return on assets was negative at 1.11 percent in the quarter against a positive 1.05 percent in the last year period. Return on equity was negative at 5.49 percent in the quarter against a positive 1.83 percent in the last year period.
Investments move up
Investments stood at $4,736.94 million as on Dec. 31, 2016, up 14.76 percent or $609.19 million from year-ago. Meanwhile, reinsurance recoverables moved up 40.26 percent or $28.69 million over the year to $99.94 million on Dec. 31, 2016.
Total debt was almost stable over the past one year at $351.41 million on Dec. 31, 2016. Shareholders equity stood at $1,361.15 million as on Dec. 31, 2016, up 0.89 percent or $12.05 million from year-ago. As a result, debt to equity ratio was almost stable at 0.26 percent in the quarter, when compared with the last year period.
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