Maiden Re(US:MHLD)2025-03-10 12:01Financial Performance - Net loss attributable to Maiden common shareholders was $158.0 million or $1.59 per diluted common share for the fourth quarter of 2024 [18]. - Underwriting loss for the fourth quarter of 2024 was $161.3 million compared to an underwriting loss of $21.1 million in the same period in 2023, largely due to adverse prior year loss development of $129.4 million [18]. - Net loss and LAE increased by $115.9 million during Q4 2024 compared to Q4 2023, impacted by net adverse PPD of $129.4 million [29]. - Underwriting loss for the year ended December 31, 2024 was $197.4 million, compared to a loss of $49.5 million in 2023, largely due to adverse PPD of $154.4 million [35]. - Non-GAAP operating loss was $181.2 million or $1.81 per diluted common share for the year ended December 31, 2024, compared to a loss of $23.0 million or $0.23 per diluted common share in 2023 [51]. - The net loss for the year ended December 31, 2024, was $(200,969) million, compared to a net loss of $(38,569) million in 2023, indicating a significant increase in losses [73]. - The basic and diluted loss per share attributable to common shareholders for the year ended December 31, 2024, was $(2.01), compared to $(0.38) in 2023, indicating a worsening of loss per share [71]. - The net loss and loss adjustment expenses for the year ended December 31, 2024, totaled $186,127 million, significantly higher than $61,228 million in 2023, an increase of 204.5% [73]. Premiums and Underwriting - Net premiums written for the three months ended December 31, 2024 were $7.6 million, an increase from $6.9 million for the same period in 2023 [22]. - Net premiums written in the Diversified Reinsurance segment increased by $1.6 million or 22.4% for the three months ended December 31, 2024 compared to the same period in 2023 [22]. - Net premiums written for the year ended December 31, 2024 increased by $9.9 million or 42.7% to $33.1 million compared to $23.2 million in 2023 [34]. - Gross premiums written increased to $7,563,000 in Q4 2024 from $7,095,000 in Q4 2023, representing a growth of 6.6% [75]. - Net premiums earned rose to $11,586,000 in Q4 2024, up from $11,449,000 in Q4 2023, indicating a year-over-year increase of 1.2% [75]. Investment Performance - Investment results decreased to $4.1 million for the fourth quarter of 2024 compared to $14.6 million in the fourth quarter of 2023 [18]. - Net investment income decreased by $2.3 million or 27.2% for Q4 2024 compared to Q4 2023, primarily due to lower interest income from funds withheld receivable [25]. - Net investment income decreased by $11.8 million or 31.7% for the year ended December 31, 2024, due to lower interest income from funds withheld balance [40]. - Net realized and unrealized investment losses for Q4 2024 were $0.8 million, compared to net gains of $5.5 million in Q4 2023, largely due to a smaller alternative asset portfolio [28]. - Total investable assets decreased to $699,423,000 as of December 31, 2024, down from $914,278,000 in 2023, reflecting a decline of 23.5% [77]. Shareholder Equity - Book value per common share decreased 81.5% to $0.46 and adjusted book value per common share decreased 52.4% to $1.52 at December 31, 2024 compared to December 31, 2023 [18]. - Shareholders' equity dropped to $45.2 million at December 31, 2024, compared to $249.2 million at December 31, 2023 [56]. - Adjusted shareholders' equity was $150.1 million at December 31, 2024, down from $320.1 million at December 31, 2023 [57]. - Total shareholders' equity fell to $45,193,000 in 2024 from $249,160,000 in 2023, a decrease of 81.9% [77]. Corporate Actions and Strategic Initiatives - The Company entered into a combination agreement with the Kestrel Group to form a new publicly listed specialty program group [18]. - The Company targets completing the sale of its Swedish subsidiaries during the second quarter of 2025 [18]. - The company repurchased 383,355 common shares at an average price per share of $1.57 under its share repurchase plan prior to the announcement of the transaction with Kestrel [19]. - The company did not authorize any quarterly dividends on its common shares during the three and twelve months ended December 31, 2024 [61]. Other Financial Metrics - The annualized return on average common equity for the year ended December 31, 2024, was (136.5)%, compared to (14.5)% in 2023, showing a substantial decline in profitability [71]. - The total expenses for the year ended December 31, 2024, were $245,785 million, compared to $111,486 million in 2023, an increase of 120.2% [71]. - Approximately $42.0 million or 32.5% of the total adverse PPD for Q4 2024 is recoverable under the LPT/ADC Agreement, expected to be recognized as future GAAP income [31]. - The unamortized deferred gain on retroactive reinsurance under the LPT/ADC Agreement increased to $105.0 million as of December 31, 2024, from $70.9 million at December 31, 2023, reflecting a net increase of $34.0 million [52]. - The reinsurance recoverable on unpaid losses under the LPT/ADC Agreement increased to $532.9 million at December 31, 2024, from $515.5 million at December 31, 2023 [53].