Top brass quit Maiden Holdings

Maiden Holding’s chief executive Art Raschbaum will leave the business on September 1, citing personal reasons for his decision. Raschbaum's departure will be followed by that of Maiden's chief financial officer Karen Schmitt who has also announced her retirement. Schmitt will remain with the firm as executive vice president until March 1, 2019 when she will step away from the company. Replacing Raschbaum is Lawrence Metz, currently executive vice president, general counsel and secretary. Metz will take on the dual roles of president and CEO. Patrick Haveron, currently president of Maiden Reinsurance, will succeed Schmitt as chief financial officer of Maiden, as well as chief operating officer from the start of September. He will retain his current role as president for Maiden Bermuda. “I want to recognise [Arturo’s] significant contributions to Maiden and thank him for his many years of service," said Barry Zyskind, chairman of the board of directors at the firm, and chief executive of Maiden affiliate AmTrust Financial. "We are also appreciative of the contributions that Karen has made to our organisation over many years and sincerely thank her for agreeing to stay on to assist with the transition,” he added. The announcement of Raschbaum and Schmitt’s departures follows a disappointing second quarter for the Bermudian reinsurer, as its quota share agreement with AmTrust continues to strain its business. Maiden reported a net income of $2.6m for the second quarter of the year, an improvement on the $16.3m loss it suffered during the same period last year. Gross written premiums were down to $654m for the second quarter, from $705m recorded for the same period in 2017. The organisation's quota share agreement with AmTrust was cited at least partially for the decline, following a reduction in its workers' compensation line of business. Gross written premiums for AmTrust reinsurance were $491m for the quarter, a decline from the $564m written during the same period in 2017. Maiden’s diversified reinsurance segment wrote $162m in gross premiums for the second quarter of the year, an improvement on the $140m written during the same period in 2017. “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,” said Zyskind. According to Raschbaum, the decline in total quarterly revenues for the business to $713m for this quarter from $754m in 2017 was at least partially attributable to a decline in net premiums written in the Maiden's quota share agreement with AmTrust as well. Maiden Holdings and AmTrust have been in a quota share agreement since Maiden’s inception in 2008. “We continue to evaluate the impact of the operational changes taking place in the underlying claims for the AmTrust segment and believe we are taking a prudent course as more is learned and observed regarding these continuing changes. Revenue in the quarter reflected a continued moderation of premiums from our largest client, AmTrust, somewhat offset by increased premiums in the Diversified segment,” Raschbaum said. Both companies board of directors have agreed to extend the renewal provision for the agreement between Maiden Bermuda and AmTrust Bermuda’s reinsurance subsidiary, AmTrust International Insurance. The agreement... CLICK HEADLINE TO READ MORE

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