Maiden Holdings Ltd. boosted its profits by $600,000 during the first quarter of 2009, despite incurring a $1.9 million realised loss on its investment portfolio.

The insurer saw its net income rise to $13.1 million in the first quarter to $12.5 million for the same period last year.

Its operating earnings also increased to $16.8 million compared to $12.4 million over the corresponding times.

Annualised return on equity on operating earnings for the first quarter was 12.9 percent versus 9.4 percent in 2008, while the combined ratio for the first quarter was 95.4 percent compared to 92.7 percent in 2008.

Quarterly operating earnings per basic share was 25 cents compared to 21 cents last year, with book value per share standing at $7.79 as of March 31, 2009.

"The acquisition and integration of the GMAC RE platform are on target, and we continue to see the enormous long term potential of this acquisition for strengthening Maiden Holdings' position in the marketplace," said Art Raschbaum, president and CEO of Maiden Holdings.

"The first quarter reflects continued progress towards defined business targets with solid underwriting performance reflecting continued discipline and revenue growth from existing client relationships and new account development.

"We remain focused on maintaining a high quality balance sheet and continue our efforts to carefully deploy cash. As a result of the significant cash balance held during the first quarter, investment earnings have not yet met their full potential.

"We expect continued growth in earnings as investable assets are fully deployed."

Q1 REPORT CARD

Net income: $13.1 million compared to $12.5 million in 2008

Combined ratio: 95.4 percent compared to 92.7 percent in 2008

Net premiums written: $336.5 million compared to $102.4 million in 2008