PEMBROKE, Bermuda, Aug. 31, 2018 (GLOBE NEWSWIRE) -- Maiden Holdings, Ltd. (NASDAQ: MHLD) (“Maiden” or the “Company”) announced today that it has entered into an agreement to sell Maiden Reinsurance North America, Inc. (“MRNA”), the Company’s U.S. domestic insurance company, to Enstar Holdings (US) LLC (“Enstar”) for net proceeds of $307.5 million and subject to certain closing adjustments. Including the sale of MRNA, approximately $1.3 billion of legacy reinsurance liabilities for Maiden’s U.S. Diversified Business will be sold and novated to Enstar as part of the transaction.
The transaction, which is expected to close in the fourth quarter of 2018, does not include any of the Bermuda underwriting elements of Maiden’s portfolio including its AmTrust Business or its International Insurance Services and Capital Solutions businesses in Europe, which forms the significant majority of Maiden’s existing business and will remain as part of its on-going business.
“Today’s announcement of the sale of MRNA represents another step in our continuing strategic review. This transaction will broaden our ability to manage and allocate capital as we move forward, and will create value for our shareholders,” said Lawrence F. Metz, Maiden’s President and Chief Executive Officer designate.
Patrick J. Haveron, Maiden’s Chief Financial Officer and Chief Operating Officer designate said: “Today’s announcement along with our previously announced renewal rights transaction will further enhance our capital position. We are moving immediately to improve profitability by implementing additional operational efficiencies and expense reductions through the end of 2018, and we expect to provide further updates as we move forward.”
About Maiden Holdings, Ltd.
Maiden Holdings, Ltd. is a Bermuda-based holding company formed in 2007. Through its subsidiaries, which are each A- rated (excellent) by A.M. Best, the Company is focused on providing non-catastrophic, customized reinsurance products and services to small and mid-size insurance companies in the United States and Europe. As of June 30, 2018, Maiden had $6.7 billion in assets and shareholders' equity of $1.1 billion.
Advisors
BofA Merrill Lynch is acting as exclusive financial advisor and Paul, Weiss, Rifkind, Wharton & Garrison LLP is acting as legal advisor to Maiden in connection with the transaction.
Forward Looking Statements
This release contains "forward-looking statements" which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The forward-looking statements are based on the Company's current expectations and beliefs concerning future developments and their potential effects on the Company, including forward-looking statements with respect to the potential sale of MRNA, the benefits expected to be derived from the sale of the renewal rights and the achievement of additional operational efficiencies and expense reductions. Readers are cautioned that actual results may differ materially from those projected as a result of significant risks and uncertainties, including the ability to negotiate a satisfactory agreement with respect to the sale of MRNA, delay in achieving improvements (if any) in the Company’s business results and financial positions, non-receipt of expected payments, changes in interest rates, effect of the performance of financial markets on investment income and fair values of investments, developments of claims and the effect on loss reserves, accuracy in projecting loss reserves, the impact of competition and pricing environments, changes in the demand for the Company's products, the effect of general economic conditions and unusual frequency of storm activity, adverse state and federal legislation, regulations and regulatory investigations into industry practices, developments relating to existing agreements, heightened competition, changes in pricing environments, and changes in asset valuations. Additional information about these risks and uncertainties, as well as others that may cause actual results to differ materially from those projected is contained in Item 1A. Risk Factors in the Company's Annual Report on Form 10-K for the year ended December 31, 2017 as updated in periodic filings with the SEC. However these factors should not be construed as exhaustive. Forward-looking statements speak only as of the date they are made and the Company undertakes no obligation to update or revise any forward-looking statement that may be made from time to time, whether as a result of new information, future developments or otherwise, except as required by law.
CONTACT:
Bill Horning, Senior Vice President, Investor Relations
Maiden Holdings, Ltd.
Phone: 856.359.2532
E-mail: bhorning@maiden.bm