Feb. 23 (Bloomberg) -- Maiden Holdings Ltd., the reinsurer doing business in the U.S. and Europe, plunged the most in more than three years as fourth-quarter profit missed analysts’ expectations.
Maiden fell as much as 9.5 percent today in New York, the steepest decline since Dec. 1, 2008. It slipped 1.6 percent to $8.99 at 4:10 p.m.
Net income in the fourth quarter dipped to $17.5 million, or 24 cents a share, from $19.1 million, or 27 cents, a year earlier, the Hamilton, Bermuda-based reinsurer said in a statement yesterday. Operating profit, which excludes some investment gains, was the same as 2010, missing by 6 cents the average estimate of four analysts surveyed by Bloomberg.
Chief Financial Officer John Marshaleck said in a conference call today that lower interest rates driven down by accelerating payments on pools of mortgage-backed securities the company purchased in 2009 were the “single biggest impact” on fourth-quarter income.
“There’s been an acceleration in the pay-downs on those pools,” Marshaleck said on the call. “We have to reinvest that money with current rates,” which he said are very low.
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