A.M. Best Comments on Credit Ratings of Maiden Holdings, Ltd.
August 10 2018 - 10:06AM
Business Wire
A.M. Best has commented that the Financial Strength
Rating of A- (Excellent) and the Long-Term Issuer Credit Rating
(ICR) of “a-“ of Maiden Reinsurance Ltd. (Maiden Bermuda)
(Hamilton, Bermuda) and Maiden Reinsurance North America,
Inc., the insurance operating subsidiaries of Maiden
Holdings, Ltd. (MHLD) [NASDAQ:MHLD], are unchanged by the Aug.
9, 2018, release of updated information related to the
organization’s strategic review, including changes in senior
leadership. The Long-Term ICR of “bbb-“ of MHLD and its downstream
intermediate holding company subsidiary, Maiden Holdings North
America, Ltd. (MHNA), and all Long-Term Issue Credit Ratings
assigned to securities issued by MHLD and MHNA are also unchanged.
The outlook of these Credit Ratings remains negative.
In conjunction with the release of its second-quarter 2018
earnings, MHLD announced today that it continues to pursue various
options in conjunction with its previously announced strategic
review, but remains committed to maintaining a “substantial
presence in the U.S. reinsurance market.” Further underwriting
actions and expense reductions will be implemented that are
expected to drive improved results in the company’s Diversified
segment. The majority of the activity related to the strategic
review is anticipated to occur during third-quarter 2018, with the
review complete by year-end.
The retirements of the company’s president and chief executive
officer, Art Raschbaum, and of its chief financial officer, Karen
Schmitt, were also announced, and will be effective Sept. 1, 2018.
Schmitt will remain as executive vice president through March 1,
2019. Lawrence F. Metz, currently executive vice president, general
counsel and secretary of MHLD, as well as president of Maiden
Global Servicing Company, will replace Raschbaum. The CFO role will
be filled by Patrick J. Haveron, currently executive vice president
of MHLD and president of Maiden Bermuda. Haveron also has been
appointed chief operating officer of MHLD. While this represents a
substantial change in leadership, by filling these positions
immediately and with internal candidates, the company remains
focused on completing the on-going strategic review on a timely
basis.
The changes in equity and reserves through the first six months
of 2018 have been noted, but no rating action is required. The
negative outlook, which reflected the decline in balance sheet
strength in 2017, and the potential for continued deterioration in
underwriting and operating trends, remains in place. A.M. Best will
continue to monitor financial results and balance sheet strength
and will remain in contact with management as it evaluates various
strategic options.
This press release relates to Credit Ratings that have been
published on A.M. Best’s website. For all rating information
relating to the release and pertinent disclosures, including
details of the office responsible for issuing each of the
individual ratings referenced in this release, please see A.M.
Best’s Recent Rating Activity web page. For
additional information regarding the use and limitations of Credit
Rating opinions, please view Understanding Best’s Credit
Ratings. For information on the proper media use of Best’s
Credit Ratings and A.M. Best press releases, please view
Guide for Media - Proper Use of Best’s Credit Ratings and A.M.
Best Rating Action Press Releases.
A.M. Best is a global rating agency and information provider
with a unique focus on the insurance industry. Visit
www.ambest.com for more information.
Copyright © 2018 by A.M. Best Rating
Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.
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version on businesswire.com: https://www.businesswire.com/news/home/20180810005264/en/
A.M. BestJennifer Marshall, CPCU,
ARMDirector+1 908 439 2200, ext.
5327jennifer.marshall@ambest.comorMichael J.
Lagomarsino, CFA, FRMSenior Director+1 908 439 2200,
ext. 5810michael.lagomarsino@ambest.comorChristopher
SharkeyManager, Public Relations+1 908 439 2200, ext.
5159christopher.sharkey@ambest.comorJim
PeavyDirector, Public Relations+1 908 439 2200, ext.
5644james.peavy@ambest.com
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