Maiden Holdings Ltd has reported it turned a fourth quarter profit of $47.7 million, compared to a net loss of $21.5 million a year earlier.

The company said operating earnings were $45 million compared to an operating loss of $3.5 million for the same period in 2019.

For the year, net income was $80 million compared to a net loss of $131.9 million for 2019. The company said net income from continuing operations of $41.8 million compared to a net loss from continuing operations of $109.4 million for 2019 largely due to the following factors:

· Underwriting income of $17.3 million compared to underwriting loss of $183.8 million in 2019. The improvement was due to lower loss ratios in 2020 and favourable prior year loss development of $16.5 million compared to adverse prior year loss development of $112.5 million during 2019 incurred primarily within the AmTrust Reinsurance segment; and

· Interest in income of equity method investments of $5.1 million for the year ended December 31, 2020 which were newly acquired in the third quarter of 2020.

This improvement was partially offset by lower investment income and lower realised gains on investments, foreign exchange losses and no results from discontinued operations for the year ended December 31, 2020.

Lawrence F. Metz, Maiden’s president and co-chief executive officer, said: "We are pleased to report the completion of a full year of profitability in 2020 with our fourth quarter results, with continued modestly favourable loss development during the quarter and positive investment results from our evolving alternative investment portfolio.

“We are grateful for our dedicated team's contributions to our 2020 results. We also continue to experience immaterial effects from the Covid-19 pandemic. The results of the partial tender of our preference shares during the fourth quarter contributed to the increase in book value at December 31, 2020, which has more than tripled in the last year. Our newly formed Genesis Legacy Solutions platform is beginning to build its pipeline and we look forward to seeing its contributions to Maiden’s results in 2021 and beyond."

Patrick J. Haveron, Maiden’s co-chief executive officer and chief financial officer, added: “The run-off of our insurance liabilities continues in line with our expectations and 2020 produced overall favourable development. These positive indicators are tempered by the knowledge that certain longer-tail segments still require further seasoning. As our run-off continues, it is critical to continue to build risk-adjusted investment income and gains to enable Maiden to utilise the potentially significant tax assets it has available.”