Maiden Re(US:MHLD)2025-05-12 20:02Financial Performance - Net loss attributable to Maiden common shareholders was $8.6 million or $0.09 per diluted common share for Q1 2025[18] - Total revenues for Q1 2025 were $14,049,000, a decrease of 51.4% compared to $28,904,000 in Q1 2024[57] - The company reported a net loss of $8,645,000 in Q1 2025, compared to a net income of $1,459,000 in Q1 2024[57] - Basic and diluted loss per share attributable to common shareholders was $(0.09) in Q1 2025, compared to earnings of $0.01 in Q1 2024[57] - Non-GAAP operating loss was $2.8 million or $0.03 per diluted common share for Q1 2025, an improvement from a loss of $5.0 million or $0.05 per diluted common share in Q1 2024[31] - Non-GAAP operating loss for Q1 2025 was $(2,807,000), an improvement from $(4,950,000) in Q1 2024[60] - Annualized return on average common equity was (84.7)% in Q1 2025, compared to 2.4% in Q1 2024[57] Underwriting and Premiums - Underwriting income was $7.5 million for Q1 2025 compared to an underwriting loss of $7.5 million in the same period in 2024, driven by favorable prior year loss development of $12.4 million[18] - Net premiums written for Q1 2025 were $4.0 million compared to $8.3 million for the same period in 2024[22] - Net premiums written in the Diversified Reinsurance segment decreased by $3.8 million or 43.4% in Q1 2025 due to lower premiums from subsidiaries Maiden LF and Maiden GF, which are no longer writing new business[32] - Gross premiums written in Q1 2025 were $4,074,000, a decline of 51.0% from $8,323,000 in Q1 2024[57] - Net premiums earned in Q1 2025 were $7,684,000, down 38.1% from $12,408,000 in Q1 2024[57] Investment Results - Investment results decreased to $3.6 million for Q1 2025 compared to $17.1 million in Q1 2024, reflecting lower income from restricted cash and fixed income investments[18] - Net realized and unrealized investment gains for Q1 2025 were $3.3 million, a decrease from $8.8 million in Q1 2024, including alternative investments gains of $3.3 million compared to $9.0 million in the prior year[26] - The internal rate of return on completed investments was 12.3% with a capital multiple of 1.30x, above targeted returns[21] Expenses - Corporate general and administrative expenses increased to $7.5 million for Q1 2025 compared to $5.3 million in Q1 2024, primarily due to expenses related to strategic initiatives[22] - Total general and administrative expenses increased by $2.7 million, or 33.7%, in Q1 2025, primarily due to higher professional service fees related to strategic initiatives[29] Assets and Equity - Total assets were $1.2 billion at March 31, 2025, a decrease of $81.4 million compared to December 31, 2024, with shareholders' equity at $37.6 million, down from $45.2 million[41] - Total assets decreased to $1,234,584,000 as of March 31, 2025, from $1,316,006,000 as of December 31, 2024[55] - Total liabilities decreased to $1,197,011,000 as of March 31, 2025, from $1,270,813,000 as of December 31, 2024[55] - The company’s total equity fell to $37,573,000 as of March 31, 2025, down from $45,193,000 as of December 31, 2024[55] - Adjusted shareholders' equity was $141.5 million at March 31, 2025, including an unamortized deferred gain of $104.0 million under the LPT/ADC Agreement[42] - Adjusted shareholders' equity decreased from $150,148 million to $141,541 million, reflecting a decline of approximately 5.7%[62] - Total shareholders' equity fell from $45,193 million to $37,573 million, a decrease of about 16.9%[62] Strategic Initiatives - The company continues to focus on strategic transactions to enhance shareholder value, as indicated in their investor update presentation[74] - Management emphasizes the importance of non-GAAP operating earnings as a measure of performance, excluding certain investment gains and losses[67] - The company aims to leverage its expertise in the insurance and financial services industries to create shareholder value through active asset and capital management[76] Currency and Other Losses - Foreign exchange and other losses were $7.4 million for Q1 2025 compared to gains of $2.1 million in Q1 2024, driven by a significant weakening of the U.S. dollar[22] Other Financial Metrics - Book value per common share decreased 17.4% to $0.38 and adjusted book value per common share decreased 6.6% to $1.42 at March 31, 2025 compared to December 31, 2024[18] - Cash and cash equivalents increased from $25,651 million to $28,706 million, an increase of about 11.9%[62] - Loan to related party decreased from $167,975 million to $128,118 million, a decline of approximately 23.8%[62] - As of March 31, 2025, the annualized yield on fixed income assets decreased, with 49.4% of the fixed income portfolio invested in floating rate assets compared to 51.1% as of March 31, 2024[25] - Net interest income from the net loan receivable was impacted by a non-recurring adjustment of $1.2 million, resulting in a lower weighted average interest rate of 1.9% on a balance of $128.1 million for Q1 2025, down from 7.3% on $168.0 million in Q1 2024[25] Regulatory and Transaction Updates - The Kestrel Agreement remains subject to customary closing conditions, with completion targeted for Q2 2025[18] - The sale of Maiden's Swedish subsidiaries is proceeding through the necessary regulatory approval process, with completion also targeted for Q2 2025[18]