A.M. Best reiterated the issuer credit ratings (ICR) of "bbb-" for Maiden Holdings, Ltd. MHLD along with the financial strength rating (FSR) of A- (Excellent) and ICR of “a-” of its property and casualty subsidiaries. Concurrently, the rating agency reiterated the ICR and senior debt ratings of “bbb-” of Maiden Holdings North America, Ltd., a direct, wholly owned subsidiary of Maiden Holdings. The outlook stays positive for the ratings.
Alongside, A.M. best also reiterated the FSR of A- (Excellent) and the ICR of “a-” of Maiden Specialty Insurance Company. The outlook is stable.
The affirmations were backed by the company’s sustained sturdy underwriting and operating results, providing services to small- to medium-size insurance companies underwriting traditional lines of business. Moreover, its non-catastrophe property and casualty book is well diversified. The ratings also account for its solid risk-adjusted capitalization. However, exposure to competition in its core reinsurance markets and client concentration overshadow the positives.
The rating agency might consider a rating upgrade if the company continues to outperform its peers and has enough risk-adjusted capitalization. Nonetheless, the ratings might be subject to downgrade if the underwriting and operating results deteriorate or risk-adjusted capitalization erodes.
Maiden Holdings presently carries a Zacks Rank #5 (Strong Sell). Some better-ranked property and casualty insurers are Endurance Specialty Holdings Ltd. ENH, Markel Corp. MKL and State Auto Financial Corp. STFC. All these sport a Zacks Rank #1 (Strong Buy).
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