A.M. Best Affirms Ratings of Maiden Holdings, Ltd. and Its Subsidiaries (Business Wire)
Fri, 12 Jun 2009 15:00:00 Etc/GM
The ratings reflect the solid capitalization achieved through capital contributions to each entity from Holdings, which infused the net proceeds of a private placement offering, as well as half of the proceeds raised in a recent trust preferred offering. Management anticipates infusing the balance of the trust preferred offering into MIC during 2009 in support of operations. The ratings also reflect the operational benefits that MIC derives as a 40% quota share partner with AmTrust Financial Services, Inc.'s (AFSI) Bermuda reinsurance subsidiary, AmTrust International Insurance, Ltd. (AII).
In addition, the ratings reflect MRC’s strategic importance to Holdings as a dedicated U.S. reinsurance platform providing treaty, accident and health and specialty facultative reinsurance following its acquisition of GMAC Re and the renewal rights to business previously written through GMAC Re.
Partially offsetting these factors are the limited risk taking experience, the execution risk faced by management in achieving its business plans and the risk inherent in profitably growing business amidst soft market conditions. Despite these concerns, the rating outlook is supported by the financial commitment of Holdings, the seasoned management team across MIC operations and the close working relationship that both MIC and MRC share with AFSI.
For Best’s Credit Ratings, an overview of the rating process and rating methodologies, please visit www.ambest.com/ratings.
The principal methodologies used in determining these ratings, including any additional methodologies and factors that may have been considered, can be found at www.ambest.com/ratings/methodology.
Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers. For more information, visit www.ambest.com.
Contact:
A.M. Best Co. Analysts Gordon McLean, 908-439-2200, ext. 5304 gordon.mclean@ambest.com or Michelle Baurkot, 908-439-2200, ext. 5507 michelle.baurkot@ambest.com or Public Relations Jim Peavy, 908-439-2200, ext. 5644 james.peavy@ambest.com or Rachelle Morrow, 908-439-2200, ext. 5378 rachelle.morrow@ambest.com
source: http://biz.yahoo.com/bw/090612/20090612005426.html?.v=1