Maiden | 8-K: FY2025 Q1 EPS: USD -0.09

EPS: As of FY2025 Q1, the actual value is USD -0.09.

Segment Revenue

• Diversified Reinsurance: Gross premiums written were $5.016 million for the three months ended March 31, 2025, compared to $8.828 million for the same period in 2024.
• AmTrust Reinsurance: Gross premiums written were -$0.942 million for the three months ended March 31, 2025, compared to -$0.505 million for the same period in 2024.

Operational Metrics

• Net Income: Net loss attributable to Maiden common shareholders was $8.6 million or $0.09 per diluted common share for the first quarter of 2025, compared to net income of $1.5 million for the same period in 2024.
• Underwriting Income: Underwriting income was $7.5 million for the first quarter of 2025 compared to an underwriting loss of $7.5 million in the same period in 2024.
• Operating Expenses: Operating expenses increased to $10.8 million in Q1 2025 from $8.1 million in Q1 2024, largely due to higher legal fees for ongoing litigation and claims disputes, offset by lower compensation costs.
• General and Administrative Expenses: Increased to $7.5 million for the three months ended March 31, 2025, compared to $5.3 million for the same period in 2024.
• Foreign Exchange Losses: Amounted to $7.4 million in Q1 2025 due to the significant weakening of the U.S. dollar relative to EUR and GBP.

Cash Flow

• Net Investment Income: Decreased to $3.0 million for the three months ended March 31, 2025, compared to $7.7 million for the same period in 2024.

Unique Metrics

• Favorable Prior Year Loss Development: $12.4 million in Q1 2025 was driven by amortization of LPT/ADC deferred gain and recoveries from Enstar.
• Deferred Tax Asset: $1.68 per share not yet recognized in book value, with $460.8 million in NOL carryforwards at March 31, 2025.
• Deferred Gain on LPT/ADC Agreement: Deferred gain decreased by $1.0 million to $104.0 million at March 31, 2025.

Outlook / Guidance

• Maiden Holdings, Ltd. anticipates completing the business combination with Kestrel Group LLC and the divestiture of the IIS platform during the second quarter of 2025, which is expected to enable more predictable areas of revenue and profit to emerge.
• The company is actively reducing its alternative asset portfolio, with anticipated reductions in Q2 2025, while maintaining expected returns despite Q1 declines.
• The strategic pivot to a fee-based model is expected to enhance profitability and increase the likelihood of utilizing significant tax NOL carryforwards, creating additional shareholder value.