Maiden Holdings Awarded Summary Judgment in Securities Fraud Case

CAMDEN, N.J. — A New Jersey federal judge has awarded reinsurance services provider Maiden Holdings Ltd. and its executives summary judgment in a securities fraud case, finding they engaged in a complex actuarial process to set loss reserves that considered historical loss ratio information.

In a Dec. 19 order, Judge Christine O’Hearn of the U.S. District Court for the District of New Jersey found the plaintiff shareholders’ allegations regarding the setting of loss reserves were speculative and conclusory.

In 2007, Maiden agreed to provide reinsurance services to insurance provider AmTrust Financial Services Inc. Under that arrangement, when AmTrust paid out …