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AmTrust reinsurance affiliate changes top leadership, posts loss

AmTrust reinsurance affiliate changes top leadership, posts loss

Reinsurer Maiden Holdings Ltd. revamped its senior management and signaled more changes ahead on Thursday as it announced a loss for the second quarter of 2018.

The Bermuda-based reinsurer, which is affiliated with New York-based AmTrust Financial Services Inc., said President and CEO Art Raschbaum would retire effective Sept. 1 and Karen Schmitt would step down as chief financial officer on the same date.

Mr. Raschbaum, who joined Maiden in 2008, will be replaced by Lawrence F. Metz, Maiden’s executive vice president, general counsel and secretary. Ms. Schmitt, who will remain with the reinsurer as an executive vice president until March 1, 2019, will be replaced by Patrick J. Haveron, who will also be the reinsurer’s chief operating officer. He will also retain his current position as president of subsidiary Maiden Reinsurance Ltd., the Maiden statement said.

In addition, Maiden is undergoing a previously announced strategic review of its operations, which it expects to complete in the second half of 2018.

The reinsurer’s two main business units are its diversified book of reinsurance for U.S. and international insurers and its quota share reinsurance affiliation with AmTrust where it reinsures 40% of AmTrust’s book.

Barry D. Zyskind, chairman of Maiden and CEO of AmTrust, said in the statement: “During our strategic review, the board recognized some very valuable business in our diversified platform. We will be focusing on those niches in the future, which along with cutting expenses, will bring the company back to acceptable levels of profitability. We are confident in our new executive management team to execute this plan.”

For the second quarter of 2018, Maiden reported a loss of $5.9 million, compared with a loss of $22.4 million in the same period last year. Maiden’s gross premium written for the second quarter fell 7.2% compared with the 2017 period to $654.2 million, largely due to reduced premium from its AmTrust business. AmTrust, which is in the process of being taken private, has reduced it workers compensation business over the past year after reporting deteriorating underwriting results for business it wrote between 2010 and 2014.

Gross written premium on Maiden’s diversified business increased 15.6% to $162.8 million in the second quarter, but its AmTrust-related business fell 12.9% to $491.5 million. The combined ratio on its diversified book was 101.1%, compared with 112.9% in the 2017 second quarter, and the combined ratio on its AmTrust book was 106.7% compared with 101.5% in the 2017 period.






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