HAMILTON, Bermuda, June 4, 2008 (PRIME NEWSWIRE) -- Maiden Holdings, Ltd. (Nasdaq:MHLD) announced today that it has entered into a multi-year reinsurance agreement with AmTrust Financial Services, Inc. (AmTrust) for business written through AmTrust's acquisition of Unitrin Business Insurance (UBI).
Under the agreement, AmTrust's subsidiaries will cede to Maiden 100% of unearned premium from the acquisition of UBI's in force book of business, approximately $80 million. Additionally, AmTrust will cede to Maiden 40% of net premium written, effective as of June 1, 2008. The agreement is effective through June 30, 2010. Maiden will pay to AmTrust a ceding commission of 34.375% and a brokerage commission of 1.25% of reinsured premium. The close of the acquisition was announced by AmTrust and Unitrin June 3, 2008.
Max Caviet, President and CEO of Maiden stated, "This is a continuation of the strategic relationship between Maiden and AmTrust as Maiden continues to benefit from AmTrust's growth and acquisition activities."
About Maiden Holdings, Ltd.
Maiden Holdings, Ltd. is a Bermuda holding company formed in May, 2007 to offer customized reinsurance products and services, through Maiden Insurance Company, Ltd., its wholly owned Bermuda reinsurance subsidiary, to small and mid-size insurance companies in the United States and Europe.
The Maiden Holdings, Ltd. logo is available at http://www.primenewswire.com/newsroom/prs/?pkgid=5006
Forward Looking Statement
This release contains "forward-looking statements" which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The forward-looking statements are based on the Company's current expectations and beliefs concerning future developments and their potential effects on the Company. There can be no assurance that actual developments will be those anticipated by the Company. Actual results may differ materially from those projected as a result of significant risks and uncertainties, including non-receipt of the expected payments, changes in interest rates, effect of the performance of financial markets on investment income and fair values of investments, developments of claims and the effect on loss reserves, accuracy in projecting loss reserves, the impact of competition and pricing environments, changes in the demand for the Company's products, the effect of general economic conditions, adverse state and federal legislation, regulations and regulatory investigations into industry practices, developments relating to existing agreements, heightened competition, changes in pricing environments, and changes in asset valuations. The Company undertakes no obligation to publicly update any forward-looking statements.