Maiden Holdings, Ltd. (NASDAQ:MHLD) Q1 2018 Earnings Conference Call - Preliminary Transcript
May 10, 2018 • 08:30 am ET
Good morning, ladies and gentlemen, and welcome to the Maiden Holdings' First Quarter 2018 Earnings Conference Call. At this time, all participants are in a listen-only mode. Later we will conduct a question-and-answer session and instructions will follow up at that time. (Operator Instructions) As a reminder, this conference call is being recorded.
I would now like to turn the conference over to Bill Horning, Senior Vice President, Investor Relations. Sir, you may begin.
Thank you. Good morning, and thank you for joining us today for Maiden's first quarter 2018 earnings conference call. Presenting on the call today we have Art Raschbaum, Maiden's Chief Executive Officer; along with Karen Schmitt, our Chief Financial Officer. Also in attendance today is Pat Haveron, President of Maiden Reinsurance Ltd.
Before we begin, I would like to note that the information presented here today contains projections or other forward-looking statements regarding future events or the future financial performance of the Company. These statements are based on current expectations and future events and are subject to a number of risks and uncertainties that could cause actual results to differ materially from these expectations.
We refer you to the documents the company files from time to time with the SEC, specifically the company's annual report on Form 10-K and our quarterly reports on Form 10-Q. Some of our discussions about the company's performance today willinclude reference to both non-GAAP financial measures and information that reconciles these measures to GAAP, as well as certain operating metrics that may be found in our filings with the SEC and in our news release located on the Maiden's Investor Relations website.
Please also note that unless otherwise stated, all references to common share data in today's discussion are on a diluted share basis, and comparative comments will refer to Maiden's results in the first quarter of 2018 relative to the corresponding period in 2017.
With that, I'll now turn the call over to Art.
Thank you, Bill. Good morning and thanks for joining us for today's call. Following several challenging quarters last year, our results in the first quarter of 2018 have improved significantly. We reported net income in the first quarter of $13.7 million, or $0.16 per diluted common share.
On an operating basis, we earned $16.8 million in the quarter or $0.20 per diluted common share, and importantly, we did not see significant adverse loss development in our Diversified segment and only a modest level of adverse development in our AmTrust Reinsurance segment. I will provide more color on business development in each segment, and then Karen, our Chief Financial Officer, will provide more detail on the quarterly results in her financial review.
Across the Diversified segment in the first quarter of 2018, gross premiums written were $279 million, down from $332 million, beginning with our US underwriting operations as we expected with the continued competitive environment. We found it more difficult to renew some accounts, some due to competitive pressure and others we choose not to renew. And