Bermuda-based Maiden Holdings Ltd. has announced an agreement with American Capital Acquisition Corporation (ACAC) that is expected to generate more than $200 million a year in extra revenue for the reinsurer.

The deal was announced as Maiden revealed net earnings of $15 million for the third quarter, compared to a loss of $27.5 million in the same period of 2008.

ACAC's proposed acquisition of GMAC's US consumer property and casualty insurance business, expected to occur in the first quarter of 2010, is connected to the agreement with Maiden. GMAC's US consumer property and casualty business generated more than $1 billion in net written premium in 2008. Maiden has agreed in principle to a multi-year 25 percent quota share agreement.

Last November Maiden reached an agreement to acquire a reinsurance business and two insurance units from Detroit-based lender GMAC.

Maiden said book value per share at September 30 was $9.45, having risen 9.8 percent during the fourth quarter, as the company's investment portfolio grew by almost 20 percent during the three months.

Shareholder's equity of $664.6 million rose 30 percent through the first nine months of the year.

Net operating earnings were $16.5 million, up from $15.4 million in the July through September period a year ago.

Net premium written soared to $221.4 million from $113.2 million in the prior-year period. Maiden spent 96.3 cents of every premium dollar on claims and expenses, compared to 94.4 cents in the third quarter of 2008.

"We continue to make solid progress toward our goals, even in the face of the highly competitive landscape and challenging economic environment," said Art Raschbaum, president and chief executive officer of Maiden Holdings, Ltd.

"Our third-quarter results reflect our strong commitment to driving significant value creation for our shareholders through our intense focus on disciplined underwriting and sound investing.

"Consistently delivering differentiated products and service to our clients in the regional and specialty markets has enabled us to maintain our pricing discipline while still continuing to expand our business and drive revenue gains.

"We are also very proud to announce the addition of another strong client as we partner with ACAC," continued Raschbaum.

"Today's announcement and the recent extension of our agreement with AmTrust Financial Services, Inc. provide us with robust momentum as we look ahead to next year and beyond. We are confident in our ability to continue to leverage our platform and expand our existing base of long-term client relationships."

For the nine months ended September 30, 2009, the company reported net income of $44.3 million and net operating earnings of $47.3 million, compared to a net loss of $1.2 million and net operating earnings of $41.5 million, for the nine months ended September 30, 2008.