World News: 15:06 GMT Friday 10th August 2018. [A.M. Best via Businesswire via SPi World News]
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.
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Business Wire: 15:06 GMT Friday 10th August 2018
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