A.M. Best Assign Ratings to Maiden Reinsurance Company

A.M. Best Assign Ratings to Maiden Reinsurance Company: "A.M. Best Co. has assigned a financial strength rating (FSR) of A- (Excellent) and issuer credit rating (ICR) of “a-” to Maiden Reinsurance Company (Maiden Reinsurance) (Maryland Heights, MO) following receipt of the approved intercompany quota share reinsurance agreement with its affiliate, Maiden Insurance Company, Ltd. (Maiden Insurance) (Hamilton, Bermuda). The outlook assigned to these ratings is stable.

Maiden Reinsurance’s predecessor entity, GMAC Direct Insurance Company (GMAC Direct) (Maryland Heights, MO), was purchased as a shell by Maiden Holdings, Ltd. (Holdings) (Hamilton, Bermuda) [NASDAQ: MHLD] from Motors Insurance Corporation (Southfield, MI), the lead member of GMAC Insurance Group (GMACI). Subsequent to the acquisition, GMAC Direct was renamed Maiden Reinsurance Company.

The ratings reflect Maiden Reinsurance’s strategic importance to Holdings in forming a dedicated U.S. reinsurance platform providing treaty, accident and health and specialty facultative reinsurance. Additionally, the ratings reflect Holdings’ financial commitment and strong balance sheet, as well as management’s commitment to maintain underwriting discipline as former GMAC Reinsurance business is written through Maiden Reinsurance. In support of the transaction, Holdings’ management raised approximately $260 million through a trust preferred offering, which $129 million was infused into Maiden Reinsurance."

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