Maiden Holdings sells U.S. treaty reinsurance renewal rights to TransRe
Maiden Holdings announced that it has sold the renewal rights in respect of its U.S. treaty reinsurance underwriting business to Transatlantic Reinsurance Company. The transaction, which has now closed, does not include any of the Bermuda underwriting elements of Maiden's portfolio including its AmTrust Business or its International Insurance Services and Capital Solutions businesses in Europe, which forms the significant majority of Maiden's existing business and will remain as part of its on-going business. The Company also reported that in connection with its previously announced strategic review, it is in advanced discussions regarding the sale of its wholly-owned subsidiary, Maiden Reinsurance North America to a third party. The transaction would cover approximately $1.1 billion of loss and LAE reserves as of June 30, 2018. Readers are cautioned that such discussions may or may not lead to an agreement to sell MRNA. The Company does not expect to disclose any further developments unless and until it determines that further disclosure is appropriate or required. The completion of the sale of the renewal rights begins the process of simplifying Maiden's operations, and along with anticipated restructuring and related expense reductions, are expected to improve its business performance and profitability, and significantly reduces the amount of capital required for Maiden's operations.