Our business consists of two reportable segments: Diversified Reinsurance
and AmTrust Reinsurance. Our Diversified Reinsurance segment consists of a portfolio
of predominantly property and casualty reinsurance business focusing on regional
and specialty property and casualty insurance companies located, primarily in
the U.S. and Europe. Our AmTrust Reinsurance segment includes all business ceded
by AmTrust to Maiden Bermuda, primarily the AmTrust Quota Share and the European
Hospital Liability Quota Share.
Diversified Reinsurance
Maiden US writes treaties, on a quota share or excess of loss basis, and facultative
risks, marketed through third-party intermediaries and on a direct basis. Maiden
Bermuda also provides quota share reinsurance support to Maiden US and Maiden
LF through intercompany reinsurance arrangements.
AmTrust Reinsurance
AmTrust is our largest client and is a multinational specialty property and
casualty insurance holding company with operations in the U.S., Europe and Bermuda.
AmTrust’s principal operating subsidiaries are rated "A" (Excellent)
with a stable outlook by A.M. Best, which rating is the third highest of 16
rating levels.
Michael Karfunkel, George Karfunkel and Barry Zyskind are our Founding Shareholders.
Michael Karfunkel is the non-executive chairman of the board of AmTrust, George
Karfunkel is a director of AmTrust, and Barry Zyskind is the president, chief
executive officer and director of AmTrust. The Founding Shareholders, including
Leah Karfunkel (wife of Michael Karfunkel), own or control approximately 47.9%
of the outstanding voting shares of AmTrust.
Through our reinsurance agreements with AmTrust, we reinsure specific lines
of business within the following AmTrust business segments:
Small commercial business insurance, which includes U.S. workers’ compensation,
commercial package and other property and casualty insurance products;
Specialty risk and extended warranty coverage for consumer and commercial goods
and custom designed coverages, such as accidental damage plans and payment protection
plans offered in connection with the sale of consumer and commercial goods,
in the U.S., United Kingdom ("U.K.") and certain other European countries,
European Hospital Liability; and
Specialty program which includes package products, general liability, commercial
auto liability, excess and surplus lines programs and other specialty commercial
property and casualty insurance to a narrowly defined, homogeneous group of
small and middle market companies.
Risk Management
Central to the reinsurance business is the assumption and management of risk.
Our risk management discipline therefore focuses on both quantitative and qualitative
elements as the means to reduce volatility of shareholder returns through a
balanced analysis and assessment of these elements. The quantitative aspect
of our risk management practice focuses on understanding and controlling a broad
array of risk parameters in order to achieve desired returns. Our business model
further mitigates the risk inherent in our business by focusing on lines of
business which are less volatile and thus, require less capital to support the
exposures generated by those lines of business. The qualitative aspect of our
risk management practice focuses on identifying and assessing risks, and taking
the necessary steps to reduce or mitigate risks that could threaten the achievement
of our business objectives.
We believe that we have developed a strong risk management culture within Maiden
through the establishment of various processes and controls which focus on our
risk exposures. We are continually reviewing and enhancing these processes and
developing additional processes that may be necessary to achieve our business
strategies and objectives within our risk management practice.
Our Enterprise Risk Management (“ERM”) Committee monitors and oversees
the risk environment and provides direction to mitigate, to an acceptable level,
the most significant and material risks that may adversely affect the Company’s
ability to achieve its goals. The Committee facilitates a culture of continuous
improvement of the Company’s capabilities around managing its strategic
risks. The ERM Committee establishes appropriate risk parameters and tolerances,
performs risk assessments, continually reviews factors that may impact our organizational
risk and develops and implements strategies and action plans to mitigate key
risks