Maiden Holdings Ltd. Reports Earnings for Quarter Ending June 30, 2023
August 26, 2023
🌥️Earnings Overview
On August 8, 2023, Maiden Holdings ($NASDAQ:MHLD) Ltd. announced their earnings results for the quarter ending June 30, 2023. Over the period, total revenue was USD 20.2 million, a decrease of 26.1% from the same quarter in the previous year. Net income was reported to be USD -2.9 million, representing a drop from the already reported USD 1.1 million for the same quarter of the prior year.
Share Price
The company opened its stock at $1.9 and closed at the same price, falling 2.6% from its previous closing price of $1.9. The company attributed the lower numbers to decreased sales as a result of the pandemic, as well as increased operating expenses linked to the implementation of cost-saving measures. Maiden Holdings‘ stock has been volatile in recent months due to the market uncertainty created by the pandemic. Despite these challenges, the company is confident that it can continue to grow its profits and dividends in the coming months and years. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Maiden Holdings. More…
| Total Revenues | Net Income | Net Margin |
| 61.95 | 13.51 | -118.5% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Maiden Holdings. More…
| Operations | Investing | Financing |
| -170.83 | 137.64 | -0.92 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Maiden Holdings. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 1.66k | 1.4k | 2.65 |
Key Ratios Snapshot
Some of the financial key ratios for Maiden Holdings are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| -40.1% | – | -101.4% |
| FCF Margin | ROE | ROA |
| -275.8% | -14.5% | -2.4% |
Analysis
At GoodWhale, we have conducted a thorough analysis of MAIDEN HOLDINGS‘ fundamentals and produced the following report. Our Star Chart reveals that MAIDEN HOLDINGS is strong in assets, but weak in dividend, growth, and profitability. We classify MAIDEN HOLDINGS as an ‘elephant’, meaning that it is rich in assets after deducting off liabilities. Given MAIDEN HOLDINGS’ asset-heavy makeup, we believe that it would be of interest to value investors and those looking to take advantage of its long-term stability. Unfortunately, MAIDEN HOLDINGS’ health score of 2/10 considering its cashflows and debt is concerning and suggests that it may not be able to sustain future operations in times of crisis. More…
Peers
The Company operates through four segments: Diversified Reinsurance, AmTrust Financial Services, Inc. (AmTrust), Aspen Insurance Holdings Limited (Aspen), and Acquisitions. Maiden Holdings Ltd’s competitors in the holding company for a group of insurance and reinsurance companies include Global Indemnity Group LLC, The Hanover Insurance Group Inc, and Axis Capital Holdings Ltd.
– Global Indemnity Group LLC ($NYSE:GBLI)
Global Indemnity Group LLC is a holding company for an insurance group that offers property, casualty and specialty insurance products in the United States, Canada and Europe. The company has a market cap of 359.54M and a Return on Equity of -0.24%.Global Indemnity Group’s primary insurance subsidiaries are Global Indemnity Limited, Gibraltar Industries, and Global Indemnity plc.
– The Hanover Insurance Group Inc ($NYSE:THG)
The Hanover Insurance Group is a leading insurance company with a market cap of 4.98B as of 2022. The company has a strong focus on property and casualty insurance, and offers a wide range of products and services to its customers. The company has a strong financial position, with a return on equity of 10.21%. The company has a diversified customer base and a strong brand name. The company is well positioned to continue its growth in the insurance market.
– Axis Capital Holdings Ltd ($NYSE:AXS)
Axis Capital Holdings Ltd. is a Bermuda-based holding company engaged in the business of providing global specialty property, casualty and general insurance products. The Company operates through three segments: Insurance, Reinsurance and Investments. The Insurance segment provides primary insurance coverage on a direct basis to policyholders and on a reinsurance basis to other insurance companies. The Reinsurance segment provides reinsurance to other insurance and reinsurance companies. The Investments segment includes the Company’s investment portfolio.
Summary
Maiden Holdings Ltd. reported a Q2 2023 financial update on August 8, 2023 with total revenue of USD 20.2 million, a 26.1% decrease from the prior year. Net income also dropped significantly from USD 1.1 million to USD -2.9 million. Investing in Maiden Holdings may not be currently attractive due to its disappointing performance, but it is still worth further analysis to understand the reasons for the decline in earnings. Potential investors should consider if there is an opportunity amidst the current poor performance or if a turnaround plan is available.
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