4 unchanged sentences
dollars, except share and per share data)
−Removed: September 30,
Fixed maturities, available-for-sale, at fair value (amortized cost 2020 - $1,530,689;
2019 - $1,813,426)
−Removed: Fixed maturities, held-to-maturity, at amortized cost (fair value 2018 - $998,012)
−Removed: Other investments, at fair value
+Added: Other investments
Total investments
2 unchanged sentences
Accrued investment income
−Removed: Reinsurance balances receivable, net (includes $30,211 and $38,278 from related parties in 2019 and 2018, respectively)
+Added: Reinsurance balances receivable, net
Reinsurance recoverable on unpaid losses
1 unchanged sentence
Deferred commission and other acquisition expenses (includes $61,439 and $68,433 from related parties in 2020 and 2019, respectively)
−Removed: Funds withheld receivable (includes $630,701 from related parties in 2019)
−Removed: Assets held for sale
+Added: Funds withheld receivable (includes $649,516 and $632,305 from related parties in 2020 and 2019, respectively)
Reserve for loss and loss adjustment expenses (includes $2,095,411 and $2,272,418 from related parties in 2020 and 2019, respectively)
1 unchanged sentence
Deferred gain on retroactive reinsurance
−Removed: Accrued expenses and other liabilities
+Added: Accrued expenses and other liabilities (includes $11,170 and $20,049 from related parties in 2020 and 2019, respectively)
Senior notes - principal amount
1 unchanged sentence
Senior notes, net
−Removed: Liabilities held for sale
Total liabilities
5 unchanged sentences
Additional paid-in capital
−Removed: Accumulated other comprehensive income (loss)
+Added: Accumulated other comprehensive (loss) income
Accumulated deficit
−Removed: Treasury shares, at cost (5,013,180 and 4,989,960 shares in 2019 and 2018, respectivel y)
−Removed: Total Maiden shareholders’ equity
−Removed: Noncontrolling interests in subsidiaries
+Added: Treasury shares, at cost (5,013,180 shares in 2020 and 2019, respectively)
+Added: Total shareholders’ equity
Total liabilities and equity
4 unchanged sentences
dollars, except per share data)
−Removed: For the Three Months Ended September 30,
−Removed: For the Nine Months Ended September 30,
+Added: For the Three Months Ended March 31,
Gross premiums written
11 unchanged sentences
Interest and amortization expenses
−Removed: Foreign exchange and other (gains) losses
+Added: Foreign exchange and other gains
Total expenses
−Removed: Loss from continuing operations before income taxes
+Added: Income (loss) from continuing operations before income taxes
income tax expense (benefit)
−Removed: Loss from continuing operations
+Added: Income (loss) from continuing operations
Loss from discontinued operations, net of income tax
−Removed: Net income from continuing operations attributable to noncontrolling interests
−Removed: Net loss attributable to Maiden
−Removed: Dividends on preference shares
−Removed: Net loss attributable to Maiden common shareholders
−Removed: Basic and diluted loss from continuing operations per share attributable to Maiden common shareholders
−Removed: Basic and diluted loss from discontinued operations per share attributable to Maiden common shareholders
−Removed: Basic and diluted loss per share attributable to Maiden common shareholders
+Added: Net income (loss)
+Added: Basic and diluted earnings (loss) from continuing operations per share attributable to common shareholders
+Added: Basic and diluted loss from discontinued operations per share attributable to common shareholders
+Added: Basic and diluted earnings (loss) per share attributable to common shareholders
Weighted average number of common shares - basic and diluted
3 unchanged sentences
(in thousands of U.S.
−Removed: For the Three Months Ended September 30,
−Removed: For the Nine Months Ended September 30,
−Removed: Other comprehensive income (loss)
−Removed: Net unrealized holdings (losses) gains on available-for-sale fixed maturities arising during period
−Removed: Adjustment for reclassification of net realized (gains) losses recognized in net (loss) income
+Added: For the Three Months Ended March 31,
+Added: Net income (loss)
+Added: Other comprehensive (loss) income
+Added: Net unrealized holdings (losses) gains on fixed maturities arising during period
+Added: Adjustment for reclassification of net realized (gains) losses recognized in net income (loss)
Foreign currency translation adjustment
−Removed: Other comprehensive income (loss), before tax
−Removed: Income tax (expense) benefit related to components of other comprehensive income (loss)
−Removed: Other comprehensive income (loss), after tax
−Removed: Comprehensive loss
−Removed: Net income attributable to noncontrolling interests
−Removed: Other comprehensive loss (income) attributable to noncontrolling interests
+Added: Other comprehensive (loss) income, before tax
+Added: Income tax benefit (expense) related to components of other comprehensive (loss) income
+Added: Other comprehensive (loss) income, after tax
+Added: Comprehensive (loss) income
Comprehensive income attributable to noncontrolling interests
−Removed: Comprehensive loss attributable to Maiden
+Added: Comprehensive (loss) income attributable to Maiden
See accompanying notes to the unaudited Condensed Consolidated Financial Statements.
2 unchanged sentences
(in thousands of U.S.
−Removed: For the Three Months Ended September 30,
−Removed: For the Nine Months Ended September 30,
+Added: For the Three Months Ended March 31,
Preference shares - Series A, C and D
10 unchanged sentences
Ending balance
−Removed: Accumulated other comprehensive income (loss)
+Added: Accumulated other comprehensive loss
Beginning balance
2 unchanged sentences
Ending balance
−Removed: (Accumulated deficit) retained earnings
+Added: Accumulated deficit
Beginning balance
−Removed: Net loss attributable to Maiden
−Removed: Dividends on preference shares
−Removed: Dividends on common shares
+Added: Net income (loss)
Ending balance
1 unchanged sentence
Beginning balance
−Removed: Shares repurchased
Ending balance
2 unchanged sentences
Disposal of subsidiaries
−Removed: Net income attributable to noncontrolling interests
Foreign currency translation adjustment
Ending balance
+Added: Total shareholders' equity
See accompanying notes to the unaudited Condensed Consolidated Financial Statements.
2 unchanged sentences
(in thousands of U.S.
−Removed: For the Nine Months Ended September 30,
+Added: For the Three Months Ended March 31,
Cash flows from operating activities
+Added: Net income (loss)
net loss from discontinued operations
−Removed: Adjustments to reconcile net loss to net cash flows from operating activities:
+Added: Adjustments to reconcile net income (loss) to net cash flows from operating activities:
Depreciation, amortization and share-based compensation
12 unchanged sentences
Accrued expenses and other liabilities
−Removed: Net cash (used in) provided by continuing operations
+Added: Net cash used in continuing operations
Net cash used in discontinued operations
−Removed: Net cash (used in) provided by operating activities
+Added: Net cash used in operating activities
Cash flows from investing activities:
−Removed: Purchases of fixed-maturities – available-for-sale
+Added: Purchases of fixed maturities
Purchases of other investments
−Removed: Net proceeds from sale of discontinued operations
−Removed: Proceeds from sales of fixed-maturities – available-for-sale
+Added: Proceeds from sales of fixed maturities
Proceeds from maturities, paydowns and calls of fixed maturities
Proceeds from sale and redemption of other investments
−Removed: Net cash provided by (used in) investing activities for continuing operations
−Removed: Net cash (used in) provided by investing activities for discontinued operations
+Added: Net cash provided by investing activities for continuing operations
+Added: Net cash used in investing activities for discontinued operations
Net cash provided by investing activities
−Removed: Cash flows from financing activities:
−Removed: Repurchase of common shares
−Removed: Dividends paid – Maiden common shareholders
−Removed: Dividends paid – preference shares
−Removed: Net cash used in financing activities
Effect of exchange rate changes on foreign currency cash, restricted cash and equivalents
−Removed: Net (decrease) increase in cash, restricted cash and cash equivalents
+Added: Net increase (decrease) in cash, restricted cash and cash equivalents
Cash, restricted cash and cash equivalents, beginning of period
7 unchanged sentences
Non-cash investing activities
−Removed: Investments transferred out related to Partial Termination Amendment and Commutation
−Removed: Investments transferred out for transactions under remaining AmTrust Quota Share business
−Removed: Investments transferred out related to discontinued operations
+Added: Investments transferred out related to Partial Termination Amendment
+Added: Investments transferred out related to funds withheld arrangement with AmTrust
See accompanying notes to the unaudited Condensed Consolidated Financial Statements.
18 unchanged sentences
These unaudited Condensed Consolidated Financial Statements, including these notes, should be read in conjunction with the Company's audited Consolidated Financial Statements, and related notes thereto, included in the Company's Annual Report on Form 10-K for the year ended December 31, 2019 .
−Removed: Certain prior year comparatives have been reclassified for 2018 to conform to the 2019 presentation.
−Removed: The effect of these reclassifications had no impact on previously reported shareholders' equity or net income.
+Added: Certain prior year comparatives have been reclassified to conform to the current year presentation.
+Added: The effect of these reclassifications had no impact on previously reported shareholders' equity or net loss.
Strategic Review
−Removed: Maiden Holdings's Board of Directors initiated a review of strategic alternatives ("Strategic Review") in the first quarter of 2018 to evaluate ways to increase shareholder value as a result of continuing significant operating losses and lower returns on equity than planned.
−Removed: In addition, as of December 31, 2018 , both the Company and its subsidiary Maiden Reinsurance Ltd.
−Removed: ("Maiden Bermuda") failed to meet their requirements to hold sufficient capital to cover their respective enhanced capital requirements (“ECR”).
−Removed: The Company had communicated such conditions to the Bermuda Monetary Authority ("BMA") and is following the guidelines of a reportable “event” as stipulated by Bermuda insurance law.
−Removed: As part of both the Strategic Review and the remediation measures implemented to cure the breach of the ECR, a series of transactions were entered into, including:
+Added: Since 2018, the Company has engaged in a series of strategic measures that have dramatically reduced the regulatory capital required to operate our business, materially strengthened our solvency ratios, re-domiciled Maiden Reinsurance Ltd.
+Added: ("Maiden Reinsurance") to Vermont in the U.S.
+Added: and ceased active reinsurance underwriting.
+Added: During that time, we significantly increased our estimate of ultimate losses and loss reserves while purchasing reinsurance protection against further loss reserve volatility and as a result, have improved the ultimate economic value of the Company.
+Added: We believe these measures have given the Company the ability to more flexibly allocate capital to those activities most likely to produce the greatest returns for shareholders.
+Added: The measures we ultimately have taken were initiated in early 2018, when our Board of Directors initiated a review of strategic alternatives ("Strategic Review") to evaluate ways to increase shareholder value after a period of continuing higher than targeted combined ratios and lower returns on equity than expected.
+Added: As part of the Strategic Review, a series of transactions were entered into including:
(1) completed the sale of Maiden Reinsurance North America, Inc.
("Maiden US") on December 27, 2018;
−Removed: (2) Maiden Bermuda's shareholders, Maiden Holdings and Maiden Holdings North America, Ltd.
−Removed: ("Maiden NA"), made capital injections of $ 125,000 on December 31, 2018 and $ 70,000 on January 18, 2019 to Maiden Bermuda from the sale proceeds of Maiden US;
+Added: (2) Maiden Reinsurance's shareholders, Maiden Holdings and Maiden Holdings North America, Ltd.
+Added: ("Maiden NA"), made capital injections of $ 125,000 on December 31, 2018 and $ 70,000 on January 18, 2019 to Maiden Reinsurance from the sale proceeds of Maiden US;
(3) entered into a partial termination amendment ("Partial Termination Amendment") with AmTrust Financial Services, Inc.
−Removed: ("AmTrust") effective January 1, 2019 which amended the quota share reinsurance agreement (“AmTrust Quota Share”) between Maiden Bermuda and AmTrust’s wholly owned subsidiary AmTrust International Insurance, Ltd.
−Removed: (“AII”) (as more fully described in Note 8);
−Removed: (4) entered into amendments which terminated the AmTrust Quota Share and the European hospital liability quota share reinsurance contract (“European Hospital Liability Quota Share”) with AmTrust’s wholly owned subsidiaries AmTrust Europe Limited ("AEL") and AmTrust International Underwriters DAC ("AIU DAC") effective January 1, 2019;
−Removed: (5) entered into the Loss Portfolio Transfer and Adverse Development Cover Agreement ("LPT/ADC Agreement") with Enstar Group Limited ("Enstar") pursuant to the revised Master Transaction Agreement entered into on March 1, 2019 ("LPT/ADC MTA");
+Added: ("AmTrust") effective January 1, 2019 which amended the quota share reinsurance agreement (“AmTrust Quota Share”) between Maiden Reinsurance and AmTrust’s wholly owned subsidiary AmTrust International Insurance, Ltd.
+Added: (“AII”) (as more fully described in "Note 10 - Related Party Transactions" );
+Added: (4) entered into amendments which terminated the AmTrust Quota Share and the European hospital liability Quota Share Reinsurance Contract (“European Hospital Liability Quota Share”) with AmTrust’s wholly owned subsidiaries AmTrust Europe Limited ("AEL") and AmTrust International Underwriters DAC ("AIU DAC") effective January 1, 2019 (these transactions are broadly referred to herein as the "Final AmTrust QS Terminations");
+Added: (5) entered into the Loss Portfolio Transfer and Adverse Development Cover Agreement ("LPT/ADC Agreement") with Enstar Group Limited ("Enstar") pursuant to the revised Master Transaction Agreement entered into on March 1, 2019;
and (6) entered into a Commutation and Release Agreement with AmTrust to commute certain workers' compensation business with AII as of January 1, 2019.
−Removed: As a result of the completion of these steps on July 31, 2019, both the Company and Maiden Bermuda have sufficient capital in excess of the respective ECR requirements.
−Removed: The relevant solvency ratios are expected to continue to improve throughout the remainder of 2019.
−Removed: Please see below for additional details regarding the LPT/ADC Agreement and the Commutation and Release Agreement.
+Added: Please see the Company's audited Consolidated Financial Statements, and related notes thereto, included in the Company's Annual Report on Form 10-K for the year ended December 31, 2019 for further details on the above transactions.
Discontinued Operations
1 unchanged sentence
treaty reinsurance operations through the sale of Maiden US which was completed on December 27, 2018.
−Removed: Except as explicitly described as held for sale or as discontinued operations, and unless otherwise noted, all discussions and amounts presented herein relate to the Company's continuing operations except for net loss, net loss attributable to Maiden and net loss attributable to Maiden common shareholders.
−Removed: Treaty Reinsurance Operations
−Removed: The sale of the U.S.
−Removed: treaty reinsurance business occurred in two parts as described below:
−Removed: (a) On August 29, 2018 , the Company entered into a Renewal Rights Agreement ("Renewal Rights") with Transatlantic Reinsurance Company ("TransRe"), pursuant to which the Company sold, and TransRe purchased, Maiden US's rights to:
−Removed: (i) renew Maiden US’s treaty reinsurance agreements upon their expiration or cancellation, (ii) solicit renewals of and replacement coverages for the treaty reinsurance agreements and (iii) replicate and use the products and contract forms used in Maiden US’s business.
−Removed: The sale was consummated on August 29, 2018 .
−Removed: The Company continues to earn premiums and remain liable for losses occurring subsequent to August 29, 2018 for any policies in force prior to and as of August 29, 2018, until those policies expire.
−Removed: The payment received for the sale of the Renewal Rights was $ 7,500 subject to potential additional amounts payable in the future in accordance with the agreement, however no additional fees have been recognized to date.
−Removed: MAIDEN HOLDINGS, LTD.
−Removed: NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
−Removed: (in thousands of U.S.
−Removed: dollars, except share and per share data)
−Removed: Basis of Presentation (continued)
−Removed: (b) On December 27, 2018 , the Company completed its sale agreement ("U.S.
−Removed: Sale Agreement") with Enstar Holdings (US) LLC ("Enstar Holdings"), pursuant to which Maiden NA sold Maiden US to Enstar Holdings.
−Removed: Pursuant to and subject to the terms of the U.S.
−Removed: Sale Agreement:
−Removed: Maiden NA sold, and Enstar Holdings purchased, all of the outstanding shares of common stock of Maiden US (“Maiden US Sale”) for gross consideration of $ 286,375 ;
−Removed: (ii) Cavello Bay Reinsurance Limited ("Cavello"), Enstar’s Bermuda reinsurance affiliate, and Maiden Bermuda entered into an agreement pursuant to which certain quota share reinsurance contracts between Maiden US and Maiden Bermuda were novated to Cavello for a ceding commission paid by Maiden Bermuda of $ 12,250 ;
−Removed: (iii) Cavello and Maiden Bermuda also entered into a retrocession agreement pursuant to which certain assets and liabilities associated with the U.S.
−Removed: treaty reinsurance business held by Maiden Bermuda were retroceded to Cavello in exchange for a $ 1,750 ceding commission;
−Removed: and (iv) Maiden Bermuda provided Enstar with a reinsurance cover for loss reserve development, up to a maximum of $ 25,000 , when losses are more than $ 100,000 in excess of the net loss and loss adjustment expenses recorded as of June 30, 2018, for no additional consideration.
−Removed: As discussed above, Maiden NA completed the sale of Maiden US to Enstar Holdings for gross consideration of $ 286,375 , which was subject to certain post-closing adjustments.
−Removed: In conjunction with the completion of the LPT/ADC Agreement discussed below, on July 31, 2019, Maiden NA and Enstar Holdings waived the post-closing adjustments procedures subject to that agreement and agreed to terminate the $ 25,000 excess of loss reinsurance agreement that Maiden Bermuda provided to Enstar in relation to the Maiden US loss reserves acquired by Enstar.
−Removed: As a result of these agreements, Maiden recorded a net additional loss from discontinued operations of $ 16,715 for the nine months ended September 30, 2019 .
−Removed: The Company determined that the sale of the U.S.
−Removed: treaty reinsurance operations represented a strategic shift that has a major effect on its ongoing operations and financial results and that all of the held for sale criteria have been met.
−Removed: Accordingly, all transactions related to the U.S.
−Removed: treaty reinsurance operations have been reported and presented as part of discontinued operations.
−Removed: Please refer to " Note 6.
−Removed: Discontinued Operations " for additional information regarding the effect of the reclassifications on the Company's Condensed Consolidated Financial Statements.
−Removed: LPT/ADC Agreement with Enstar
−Removed: Pursuant to the LPT/ADC Agreement dated as of July 31, 2019 and effective as of January 1, 2019 entered into between Maiden Bermuda and Cavello, Cavello will assume liabilities for the loss reserves as of December 31, 2018 associated with the AmTrust Quota Share in excess of a $ 2,178,535 retention up to $ 600,000 , in exchange for a retrocession premium of $ 445,000 .
−Removed: The $ 2,178,535 retention will be subject to adjustment for paid losses subsequent to December 31, 2018 .
−Removed: The LPT/ADC Agreement provides Maiden Bermuda with $ 155,000 in adverse development cover over its carried AmTrust Quota Share loss reserves at December 31, 2018 .
−Removed: The LPT/ADC Agreement meets the criteria for risk transfer and therefore has been accounted for as retroactive reinsurance.
−Removed: Cumulative ceded losses exceeding $ 445,000 result in a deferred gain which will be recognized over the settlement period in proportion to cumulative losses collected over the estimated ultimate reinsurance recoverable.
−Removed: Consequently, cumulative adverse development subsequent to December 31, 2018 may result in significant losses from operations until periods when the deferred gain is recognized as a benefit to earnings.
−Removed: At September 30, 2019 , the deferred gain liability recorded for retroactive reinsurance under the LPT/ADC Agreement was $ 104,542 .
−Removed: Under the terms of the agreement, the covered losses associated with the commutation with AmTrust, as discussed below in Commutation and Release Agreement - AmTrust Quota Share, are eligible to be covered but recoverable only when such losses are paid or settled by AII or its affiliates, provided such losses and other related amounts shall not exceed $ 312,786 .
−Removed: Settlement of funding for the LPT/ADC Agreement occurred on August 12, 2019 and Maiden Bermuda paid Enstar approximately $ 7,261 in interest related to the LPT/ADC Agreement premium, calculated at the rate of 2.64 % per annum from January 1, 2019 through August 12, 2019 .
−Removed: Commutation and Release Agreement - AmTrust Quota Share
−Removed: The Commutation and Release Agreement entered into and effective as of July 31, 2019, by AII and Maiden Bermuda, provides for AII to assume all reserves ceded by AII to Maiden Bermuda with respect to its proportional 40 % share of the ultimate net loss under the AmTrust Quota Share related to:
−Removed: (a) all losses incurred in Accident Year 2017 and Accident Year 2018 under California workers' compensation policies issued by AII and as defined in the AmTrust Quota Share ("Commuted California Business");
−Removed: and (b) all losses incurred in Accident Year 2018 under New York workers' compensation policies issued by AII ("Commuted New York Business" and together with the Commuted California Business ("Commuted Business")) in exchange for the release and full discharge of Maiden Bermuda of all of its obligations to AII with respect to the Commuted Business.
−Removed: The Commuted Business does not include any business classified by AII as Specialty Program or Specialty Risk business.
−Removed: AII and Maiden Bermuda agreed that the Commuted Business shall be discharged by Maiden Bermuda's transfer of cash and invested assets in the amount of $ 312,786 ("Commutation Payment") which is the sum of the net ceded reserves in the amount of $ 330,682 with respect to the Commuted Business as of December 31, 2018 less payments in the amount of $ 17,896 made by Maiden Bermuda with respect to the Commuted Business from January 1, 2019 through July 31, 2019.
−Removed: Settlement of the Commutation Payment occurred on August 12, 2019 and Maiden Bermuda paid AII approximately $ 6,335 in interest related to the Commutation Payment premium, calculated at the rate of 3.30 % per annum from January 1, 2019 through August 12, 2019 .
−Removed: Maiden Bermuda received a no objection letter from the BMA regarding the Commutation and Release Agreement.
−Removed: AII and Maiden Bermuda also agreed that, as of July 31, 2019, the AmTrust Quota Share shall be deemed amended as applicable so that the Commuted Business is no longer included as part of the Covered Business under the AmTrust Quota Share.
+Added: Except as explicitly described as discontinued operations, and unless otherwise noted, all discussions and amounts presented herein relate to the Company's continuing operations except for net income (loss).
+Added: Re-domestication of Maiden Reinsurance
+Added: Effective March 16, 2020, we re-domesticated our principal operating subsidiary, Maiden Reinsurance, to the State of Vermont in the United States, having made the necessary filings in both Vermont and Bermuda in the fourth quarter of 2019 and first quarter of 2020.
+Added: Maiden Reinsurance is now subject to the statutes and regulations of Vermont in the ordinary course of business.
+Added: We have determined that re-domesticating Maiden Reinsurance to Vermont enables us to better align our capital and resources with our liabilities, which originate mostly in the United States, resulting in a more efficient structure.
+Added: The re-domestication, in combination with the transactions completed pursuant to the Strategic Review, will continue to strengthen the Company’s capital position and solvency ratios.
+Added: While the Vermont Department of Financial Regulation ("Vermont DFR") will be the group supervisor for the Company, the re-domestication did not apply to the parent holding company which remains a Bermuda-based holding company.
+Added: Securities issued by Maiden Holdings were not affected by the re-domestication of Maiden Reinsurance to Vermont.
+Added: Concurrent with its re-domestication to Vermont on March 16, 2020, Maiden Holdings contributed as capital the remaining 65 % of its ownership in Maiden Reinsurance to Maiden NA.
+Added: Maiden NA now owns 100 % of Maiden Reinsurance.
MAIDEN HOLDINGS, LTD.
8 unchanged sentences
(i) Diversified Reinsurance which consists of a portfolio of property and casualty reinsurance business focusing on regional and specialty property and casualty insurance companies located primarily in Europe;
−Removed: and (ii) AmTrust Reinsurance which includes all business ceded to Maiden Bermuda from subsidiaries of AmTrust.
−Removed: In addition to these reportable segments, the results of operations of the former National General Holdings Corporation Quota Share ("NGHC Quota Share") segment have been included in the "Other" category.
−Removed: Significant Accounting Policies
−Removed: There have been no material changes to the significant accounting policies as described in the Company's Annual Report on Form 10-K for the year ended December 31, 2018 except for the following:
−Removed: Accounting for Retroactive Reinsurance Agreements
−Removed: Retroactive reinsurance agreements are reinsurance agreements under which a reinsurer agrees to reimburse the Company as a result of past insurable events.
−Removed: For these agreements, the excess of the amounts ultimately collectible under the agreement over the consideration paid is recognized as a deferred gain liability and amortized into income over the settlement period of the ceded reserves once the paid losses have exceeded the minimum retention.
−Removed: The amount of the deferral is recalculated each period based on loss payments and updated estimates of ultimate losses.
−Removed: If the consideration paid exceeds the ultimate losses collectible under the agreement, the net loss on the agreement is recognized in income immediately.
−Removed: The Company entered into an LPT/ADC Agreement with Cavello on July 31, 2019, as discussed in "Note 1.
−Removed: Basis of Presentation" .
−Removed: The Company accounts for this transaction as retroactive reinsurance and pursuant to U.S.
−Removed: GAAP, recognized a deferred gain during the third quarter of 2019, which represents the cumulative adverse development of losses subject to the LPT/ADC Agreement.
−Removed: Amortization of the deferred gain will not occur until paid losses have exceeded the minimum retention under this agreement.
−Removed: The current estimated payout period for the losses covered by the LPT/ADC Agreement before the minimum retention is exceeded is approximately five years .
−Removed: Recently Adopted Accounting Standards Updates
−Removed: Improvements to Non-employee Share-Based Payment Accounting
−Removed: In June 2018, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2018-07 guidance that simplifies the accounting for share-based payments granted to non-employees for goods and services.
−Removed: Under the guidance, most of the guidance on such payments to non-employees would be aligned with the requirements for share-based payments granted to employees as the board viewed the awards to both employees and non-employees to be economically similar and that two different accounting models are not justified.
−Removed: The Company currently measures directors’ share-based payment awards at fair value as at their grant date;
−Removed: therefore the adoption of this standard on January 1, 2019 did not have any impact on the Company’s Condensed Consolidated Financial Statements.
−Removed: Codification Improvements
−Removed: In July 2018, the FASB issued ASU 2018-09 which includes clarifications to existing codifications or corrections of unintended application of guidance that is not expected to have a significant effect on current accounting practice or create a significant administrative cost to most entities.
−Removed: The amendments in this update include items raised for board consideration through the codification's feedback system that met the scope of this project, making due process necessary.
−Removed: The amendments affect a wide variety of topics in the codification.
−Removed: The amendments apply to all reporting entities within the scope of the affected accounting guidance.
−Removed: None of the topics deemed applicable upon adoption of this standard on January 1, 2019 have a material impact in the Company's interim consolidated financial statements.
−Removed: Topic 842, Leases
−Removed: In July 2018, the FASB issued ASU 2018-11 for targeted improvements related to ASU 2016-02 which provides entities with an additional transition method to apply the new standard.
−Removed: Under the new optional transition method, an entity initially applies Accounting Standards Codification ("ASC") 842 at the adoption date and recognizes a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption.
−Removed: Topic 842 became effective for the Company during the first quarter of 2019 and was applied using a modified retrospective approach by electing the additional transition method permitted by ASU 2018-11.
−Removed: Under the additional transition method, the Company's reporting for the comparative periods presented in its financial statements will be in accordance with the pre-effective date lease accounting requirements under Topic 840.
−Removed: The Company adopted Topic 842 effective on January 1, 2019 , by electing as a package the practical expedients permitted under the transition guidance of Topic 842, and applied consistently to all leases that had commenced before the effective date of adoption.
−Removed: The package of practical expedients allowed the Company not to reassess the following:
−Removed: whether any expired or existing contracts are or contain leases;
−Removed: the lease classification for any expired or existing leases;
−Removed: and initial direct costs for any existing leases.
−Removed: In addition to electing the package of practical expedients, the Company made an accounting policy election to account for non-lease components separately from lease components.
−Removed: Furthermore, the Company made an accounting policy election not to record leases with an initial term of twelve months or less in the Company's Condensed Consolidated Balance Sheets.
−Removed: The adoption of this standard on January 1, 2019 has impacted the Company’s Condensed Consolidated Balance Sheets but did not have any impact on its results of operations or cash flows.
+Added: and (ii) AmTrust Reinsurance which includes all business ceded to Maiden Reinsurance from subsidiaries of AmTrust.
+Added: In addition to these reportable segments, the results of operations of the former National General Holdings Corporation Quota Share ("NGHC Quota Share") segment, which was commuted in November 2019, was previously included in the "Other" category.
+Added: COVID-19 Pandemic
+Added: The evolving COVID-19 global pandemic has caused significant disruption to the economy and financial markets globally, and the full extent of the potential impacts of COVID-19 are not yet known.
+Added: Circumstances caused by the COVID-19 pandemic are complex, uncertain and rapidly evolving.
+Added: Our results of operations, financial condition, and liquidity and capital resources have been adversely impacted by the COVID-19 pandemic, and the future impact of the pandemic on our financial condition or results of operations is difficult to predict.
+Added: As described herein, the Company is not currently engaged in active reinsurance underwriting and is running off the remaining unearned exposures it has reinsured.
+Added: The Company's IIS unit does write limited primary insurance coverages that could be exposed to COVID-19 claims.
+Added: While we assess our exposure to COVID-19 insurance and reinsurance claims on our existing insurance exposures and remaining reinsurance exposures as limited and immaterial, given the uncertainty surrounding the COVID-19 pandemic and its impact on the insurance industry, our preliminary estimates of losses and loss adjustment expenses and estimates of reinsurance recoverable arising from the COVID-19 pandemic may materially change.
+Added: The Company has not received any COVID-19 claims to date.
+Added: Unanticipated issues relating to claims and coverage may emerge, which could adversely affect our business by increasing the scope of coverage beyond our intent and/or increasing the frequency and severity of claims.
+Added: Due to the change in fair value of our investments caused by the COVID-19 pandemic, we and our reinsurance subsidiaries may need additional capital to maintain compliance with regulatory capital requirements and/or be required to post additional collateral under existing reinsurance arrangements, which could reduce our liquidity.
+Added: In addition, the Company may experience a reduction in the amount of available distribution or dividend capacity from its regulated reinsurance subsidiaries, which would also reduce liquidity.
+Added: Due in large part to the uncertainty caused by the COVID-19 pandemic in global financial markets, during the three months ended March 31, 2020 , the Company's investment portfolio experienced significant unrealized losses (largely due to widening credit spreads on fixed income investments), increased volatility, heightened credit risk, and declines in yields on its fixed income investments.
+Added: The Company's investment portfolio may continue to be adversely impacted by unfavorable market conditions caused by the COVID-19 pandemic, which could cause continued volatility in our results of operations and negatively impact our financial condition.
MAIDEN HOLDINGS, LTD.
2 unchanged sentences
dollars, except share and per share data)
−Removed: Significant Accounting Policies (continued)
−Removed: Please refer to "Note 10.
−Removed: Commitments and Contingencies a) Operating Lease Commitments" for further disclosures regarding the impact of the adoption of Topic 842 in 2019 .
−Removed: Premium Amortization on Purchased Callable Debt Securities
−Removed: In March 2017, the FASB issued ASU 2017-08 to amend the amortization period for certain purchased callable debt securities held at a premium.
−Removed: GAAP excludes certain callable debt securities from consideration of early repayment of principal even if the holder is certain that the call will be exercised.
−Removed: As a result, upon the exercise of a call on a callable debt security held at a premium, the unamortized premium is recorded as a loss in earnings.The amendments in ASU 2017-08 affect all entities that hold investments in callable debt securities that have an amortized cost basis in excess of the amount that is repayable by the issuer at the earliest call date.
−Removed: The amendments shorten the amortization period for certain callable debt securities held at a premium and require the premium to be amortized to the earliest call date.
−Removed: The amendments do not require an accounting change for securities held at a discount;
−Removed: the discount continues to be amortized to maturity.
−Removed: For public business entities, the amendments are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018.
−Removed: An entity should apply the amendments on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption.
−Removed: Additionally, in the period of adoption, an entity should provide disclosures about a change in accounting principle.
−Removed: The Company holds a number of fixed maturities with callable features on its Condensed Consolidated Balance Sheets and this includes certain securities that have been purchased at a premium that are being amortized to their contractual maturity dates.
−Removed: The Company has always handled the amortization of any premiums by amortizing to the earliest effective maturity;
−Removed: therefore, the adoption of this guidance on January 1, 2019 did not have any impact on its Condensed Consolidated Financial Statements.
+Added: Significant Accounting Policies
+Added: There have been no material changes to the significant accounting policies as described in the Company's Annual Report on Form 10-K for the year ended December 31, 2019 except for the following:
+Added: Recently Adopted Accounting Standards Updates
+Added: Changes to the Disclosure Requirements for Fair Value Measurement
+Added: In August 2018, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2018-13 for changes to the disclosure framework related to Topic 820 which amends the disclosure requirements for fair value measurement.
+Added: The following disclosure requirements were removed from Topic 820:
+Added: (i) amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, (ii) policy for timing of transfers between levels, and (iii) valuation processes for Level 3 fair value measurements.
+Added: The amendments clarify that the measurement uncertainty disclosure is to communicate information about the uncertainty in measurement as of the reporting date.
+Added: The following disclosure requirements were added to Topic 820:
+Added: (i) changes in unrealized gains and losses for the period included in other comprehensive income for recurring Level 3 fair value measurements held at the end of the reporting period;
+Added: and (ii) range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements.
+Added: For certain unobservable inputs, an entity may disclose other quantitative information (such as the median or arithmetic average) in lieu of the weighted average if the entity determines that other quantitative information would be a more reasonable and rational method to reflect the distribution of unobservable inputs used to develop Level 3 fair value measurements.
+Added: The amendments in this Update are effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019.
+Added: The amendments on changes in unrealized gains and losses, the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements, and the narrative description of measurement uncertainty should be applied prospectively for only the most recent interim or annual period presented in the initial fiscal year of adoption.
+Added: All other amendments should be applied retrospectively to all periods presented upon their effective date.
+Added: Early adoption is permitted upon issuance of this Update.
+Added: An entity is permitted to early adopt any removed or modified disclosures upon issuance of this Update and delay adoption of the additional disclosures until their effective date.
+Added: These amendments only impact disclosures made in " Note 5.
+Added: Fair Value Measurements " therefore, the adoption of this standard on January 1, 2020 did not impact the Company’s consolidated balance sheets, results of operations or cash flows.
Recently Issued Accounting Standards Not Yet Adopted
Accounting for Measurement of Credit Losses on Financial Instruments
−Removed: In April 2019, the FASB issued ASU 2019-04 for targeted improvements related to ASU 2016-13 " Financial Instruments - Credit Losses (Topic 326) - Measurement of Credit Losses on Financial Instruments " which replaces the "incurred loss" impairment methodology with an approach based on "expected losses" to estimate credit losses on certain types of financial instruments and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates.
−Removed: The guidance requires financial assets measured at amortized cost to be presented at the net amount expected to be collected.
−Removed: The allowance for credit losses is a valuation account that is deducted from the amortized cost of the financial asset to present the net carrying value at the amount expected to be collected on the financial asset.
−Removed: The Update also modified the accounting for available-for-sale ("AFS") debt securities, which must be individually assessed for credit losses when fair value is less than the amortized cost basis, in accordance with Subtopic 326-30, Financial Instruments—Credit Losses—Available-for-Sale Debt Securities .
−Removed: Credit losses relating to AFS debt securities will be recorded through an allowance for credit losses.
−Removed: The codification improvements in ASU 2019-04 clarify that an entity should include recoveries when estimating the allowance for credit losses.
−Removed: The amendments specify that expected recoveries of amounts previously written off and expected to be written off should be included in the valuation account and should not exceed the aggregate of amounts previously written off and expected to be written off by the entity.
−Removed: In addition, for collateral dependent financial assets, the amendments clarify that an allowance for credit losses that is added to the amortized cost basis of the financial asset(s) should not exceed amounts previously written off.
−Removed: The amendment also clarifies FASB’s intent to include all reinsurance recoverables that are within the scope of Topic 944 to be within the scope of Subtopic 326-20, regardless of the measurement basis of those recoverables.The guidance is effective for public business entities for annual periods beginning after December 15, 2019, and interim periods therein.
−Removed: The Company is currently evaluating the impact of this guidance on its results of operations, financial condition and liquidity.
+Added: In June 2016, the FASB issued ASU 2016-13 "Financial Instruments:
+Added: Credit Losses (Topic 326)" replacing the "incurred loss" impairment methodology with an approach based on "expected losses" to estimate credit losses on certain types of financial instruments and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates.
+Added: The guidance requires financial assets to be presented at the net amount expected to be collected.
+Added: The allowance for credit losses is a valuation account that is deducted from the cost of the financial asset to present the net carrying value at the amount expected to be collected on the financial asset.
+Added: ASU 2016-13 also modified the accounting for available-for-sale ("AFS") debt securities, which must be individually assessed for credit losses when fair value is less than the amortized cost basis, in accordance with Subtopic 326-30, Financial Instruments:
+Added: Credit Losses Available-for-Sale Debt Securities .
+Added: Credit losses relating to AFS debt securities will be recorded through an allowance for credit losses rather than under the current other-than-temporarily impaired ("OTTI") methodology.
+Added: In April 2019, the FASB issued ASU 2019-04 for targeted improvements related to ASU 2016-13 which clarify that an entity should include all expected recoveries in its estimate of the allowance for credit losses.
+Added: In addition, for collateral dependent financial assets, the amendments mandate that an allowance for credit losses that is added to the amortized cost basis of the financial asset should not exceed amounts previously written off.
+Added: It also clarifies FASB’s intent to include all reinsurance recoverables within the scope of Topic 944 to be within the scope of Subtopic 326-20 , regardless of the measurement basis of those recoverables.
+Added: The Company's reinsurance balances receivable and reinsurance recoverable on unpaid losses are its most significant financial assets within the scope of ASU 2016-13.
+Added: The guidance is effective for public business entities, excluding entities eligible to be smaller reporting companies ("SRCs") as defined by the SEC, for annual periods beginning after December 15, 2019, and interim periods therein.
+Added: The guidance is effective for all other entities, including public entities eligible to be SRCs, for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years.
+Added: As of December 31, 2019 , the Company qualified for SRC status, as determined on the last business day of its most recent second quarter, and is thus eligible to follow the reporting deadlines and effective dates applicable to SRCs.
+Added: Therefore Topic 326 will not be effective until the 2023 fiscal year.
+Added: The Company continues to evaluate the impact of this guidance on its results of operations, financial condition and liquidity.
MAIDEN HOLDINGS, LTD.
6 unchanged sentences
Our Diversified Reinsurance segment consists of a portfolio of predominantly property and casualty reinsurance business focusing on regional and specialty property and casualty insurance companies located primarily in Europe.
−Removed: Our AmTrust Reinsurance segment includes all business ceded to our subsidiary, Maiden Bermuda, from AmTrust, primarily the AmTrust Quota Share and the European Hospital Liability Quota Share.
−Removed: In addition to our reportable segments, the results of operations of the former NGHC Quota Share segment and the remnants of our retroceded U.S.
+Added: Our AmTrust Reinsurance segment includes all business ceded to Maiden Reinsurance by AmTrust, primarily the AmTrust Quota Share and the European Hospital Liability Quota Share, which are in run-off effective January 1, 2019.
+Added: In addition to our reportable segments, the results of operations of the former NGHC Quota Share segment which was commuted in November 2019 and the remnants of our retroceded U.S.
treaty business have been included in the "Other" category.
1 unchanged sentence
Related Party Transactions" for additional information.
−Removed: As a result of the strategic decision to divest all of the Company's U.S.
−Removed: treaty reinsurance operations as discussed in " Note 1.
−Removed: Basis of Presentation " and " Note 6.
−Removed: Discontinued Operations ", the Company revised the composition of its reportable segments.
−Removed: Previously, the underwriting results associated with the discontinued operations of the Company's U.S.
−Removed: treaty reinsurance business were included within the Diversified Reinsurance segment and the operating results associated with the remnants of the U.S.
−Removed: excess and surplus business were included within the Other category.
−Removed: These are now excluded and all prior periods presented have been reclassified to conform to this new presentation.
The Company evaluates segment performance based on segment profit separately from the results of our investment portfolio.
General and administrative expenses are allocated to the segments on an actual basis except salaries and benefits where management’s judgment is applied;
−Removed: The Company does not allocate general corporate expenses to the segments.
−Removed: In determining total assets by reportable segment, the Company identifies those assets that are attributable to a particular segment such as reinsurance balances receivable, reinsurance recoverable on unpaid losses, deferred commission and other acquisition expenses, funds withheld receivable, loans and restricted cash and cash equivalents and investments.
+Added: however general corporate expenses are not allocated to the segments.
+Added: In determining total assets by reportable segment, the Company identifies those assets that are attributable to a particular segment such as reinsurance balances receivable, reinsurance recoverable on unpaid losses, deferred commission and other acquisition expenses, funds withheld receivable, loan to related party and restricted cash and investments.
All remaining assets are allocated to Corporate.
2 unchanged sentences
Related Party Transactions", the Partial Termination Amendment and the termination of the remaining business with AmTrust effective January 1, 2019 resulted in a significant reduction in gross premiums written.
−Removed: This was due to the return of unearned premium on certain lines covered by the Partial Termination Amendment, with no new business written in 2019 resulting from the termination of the AmTrust Quota Share and the European Hospital Liability Quota Share.
−Removed: The following tables summarize our reporting segment's underwriting results and the reconciliation of our reportable segments and Other category's underwriting results to our consolidated net loss from continuing operations:
−Removed: For the Three Months Ended September 30, 2019
+Added: This was due to the return of unearned premium on certain lines covered by the Partial Termination Amendment, with no new business written since 2018 as a result of the termination of the AmTrust Quota Share and the European Hospital Liability Quota Share.
+Added: The following tables summarize the underwriting results of our reportable segments and the reconciliation of our reportable segments and Other category's underwriting results to consolidated net income ( loss ) from continuing operations:
+Added: For the Three Months Ended March 31, 2020
Diversified Reinsurance
8 unchanged sentences
Underwriting loss
−Removed: Reconciliation to net loss from continuing operations
+Added: Reconciliation to net income from continuing operations
Net investment income and realized gains on investment
1 unchanged sentence
Interest and amortization expenses
−Removed: Foreign exchange and other gains
+Added: Foreign exchange and other gains, net
Other general and administrative expenses
Income tax expense
−Removed: Net loss from continuing operations
+Added: Net income from continuing operations
Net loss and LAE ratio (1)
8 unchanged sentences
Segment Information (continued)
−Removed: For the Three Months Ended September 30, 2018
+Added: For the Three Months Ended March 31, 2019
Diversified Reinsurance
10 unchanged sentences
Net investment income and realized losses on investment
−Removed: Total other-than-temporary impairment losses
Interest and amortization expenses
−Removed: Foreign exchange and other losses
−Removed: Other general and administrative expenses
−Removed: Income tax expense
−Removed: Net loss from continuing operations
−Removed: Net loss and LAE ratio (1)
−Removed: Commission and other acquisition expense ratio (2)
−Removed: General and administrative expense ratio (3)
−Removed: Expense ratio (4)
−Removed: Combined ratio (5)
−Removed: MAIDEN HOLDINGS, LTD.
−Removed: NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
−Removed: (in thousands of U.S.
−Removed: dollars, except share and per share data)
−Removed: Segment Information (continued)
−Removed: For the Nine Months Ended September 30, 2019
−Removed: Diversified Reinsurance
−Removed: AmTrust Reinsurance
−Removed: Gross premiums written
−Removed: Net premiums written
−Removed: Net premiums earned
−Removed: Other insurance revenue
−Removed: Net loss and LAE
−Removed: Commission and other acquisition expenses
−Removed: General and administrative expenses
−Removed: Underwriting loss
−Removed: Reconciliation to net loss from continuing operations
−Removed: Net investment income and realized gains on investment
−Removed: Total other-than-temporary impairment losses
−Removed: Interest and amortization expenses
−Removed: Foreign exchange and other gains
+Added: Foreign exchange and other gains, net
Other general and administrative expenses
6 unchanged sentences
Combined ratio (5)
−Removed: MAIDEN HOLDINGS, LTD.
−Removed: NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
−Removed: (in thousands of U.S.
−Removed: dollars, except share and per share data)
−Removed: Segment Information (continued)
−Removed: For the Nine Months Ended September 30, 2018
−Removed: Diversified Reinsurance
−Removed: AmTrust Reinsurance
−Removed: Gross premiums written
−Removed: Net premiums written
−Removed: Net premiums earned
−Removed: Other insurance revenue
−Removed: Net loss and LAE
−Removed: Commission and other acquisition expenses
−Removed: General and administrative expenses
−Removed: Underwriting loss
−Removed: Reconciliation to net loss from continuing operations
−Removed: Net investment income and realized losses on investment
−Removed: Total other-than-temporary impairment losses
−Removed: Interest and amortization expenses
−Removed: Foreign exchange and other gains
−Removed: Other general and administrative expenses
−Removed: Income tax expense
−Removed: Net loss from continuing operations
−Removed: Net loss and LAE ratio (1)
−Removed: Commission and other acquisition expense ratio (2)
−Removed: General and administrative expense ratio (3)
−Removed: Expense ratio (4)
−Removed: Combined ratio (5)
Calculated by dividing net loss and LAE by the sum of net premiums earned and other insurance revenue.
3 unchanged sentences
Calculated by adding together net loss and LAE ratio and the expense ratio.
−Removed: The following tables summarize the financial position of our reportable segments including the reconciliation to our consolidated assets at September 30, 2019 and December 31, 2018 :
−Removed: September 30, 2019
+Added: For the Three Months Ended March 31, 2020
Diversified Reinsurance
AmTrust Reinsurance
+Added: For the Three Months Ended March 31, 2019
+Added: Diversified Reinsurance
+Added: AmTrust Reinsurance
+Added: The following tables summarize the financial position of the Company's reportable segments including the reconciliation to the Company's consolidated total assets at March 31, 2020 and December 31, 2019 :
+Added: March 31, 2020
+Added: Diversified Reinsurance
+Added: AmTrust Reinsurance
Total assets - reportable segments
5 unchanged sentences
Corporate assets
−Removed: Assets held for sale
MAIDEN HOLDINGS, LTD.
3 unchanged sentences
Segment Information (continued)
−Removed: The following tables set forth financial information relating to net premiums written by major line of business and reportable segment for the three and nine months ended September 30, 2019 and 2018 :
−Removed: For the Three Months Ended September 30,
−Removed: Net premiums written
−Removed: Diversified Reinsurance
−Removed: International
−Removed: Total Diversified Reinsurance
−Removed: AmTrust Reinsurance
−Removed: Small Commercial Business
−Removed: Specialty Program
−Removed: Specialty Risk and Extended Warranty
−Removed: Total AmTrust Reinsurance
−Removed: Total Net Premiums Written
−Removed: For the Nine Months Ended September 30,
+Added: The following tables set forth financial information relating to net premiums written by major line of business and reportable segment for the three months ended March 31, 2020 and 2019 :
+Added: For the Three Months Ended March 31,
Net premiums written
8 unchanged sentences
Total Net Premiums Written
−Removed: The following tables set forth financial information relating to net premiums earned by major line of business and reportable segment for the three and nine months ended September 30, 2019 and 2018 :
−Removed: For the Three Months Ended September 30,
−Removed: Net premiums earned
−Removed: Diversified Reinsurance
−Removed: International
−Removed: Total Diversified Reinsurance
−Removed: AmTrust Reinsurance
−Removed: Small Commercial Business
−Removed: Specialty Program
−Removed: Specialty Risk and Extended Warranty
−Removed: Total AmTrust Reinsurance
−Removed: Total Net Premiums Earned
−Removed: MAIDEN HOLDINGS, LTD.
−Removed: NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
−Removed: (in thousands of U.S.
−Removed: dollars, except share and per share data)
−Removed: Segment Information (continued)
−Removed: For the Nine Months Ended September 30,
+Added: For the Three Months Ended March 31,
+Added: The following tables set forth financial information relating to net premiums earned by major line of business and reportable segment for the three months ended March 31, 2020 and 2019 :
+Added: For the Three Months Ended March 31,
Net premiums earned
8 unchanged sentences
Total Net Premiums Earned
+Added: For the Three Months Ended March 31,
Fixed Maturities
−Removed: The original or amortized cost, estimated fair value and gross unrealized gains and losses of fixed maturities at September 30, 2019 and December 31, 2018 are as follows:
−Removed: September 30, 2019
+Added: The original or amortized cost, estimated fair value and gross unrealized gains and losses of fixed maturities at March 31, 2020 and December 31, 2019 are as follows:
+Added: March 31, 2020
Original or amortized cost
1 unchanged sentence
Gross unrealized losses
−Removed: AFS fixed maturities:
treasury bonds
3 unchanged sentences
Corporate bonds
−Removed: Municipal bonds
Total fixed maturity investments
+Added: MAIDEN HOLDINGS, LTD.
+Added: NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
+Added: (in thousands of U.S.
+Added: dollars, except share and per share data)
+Added: Investments (continued)
December 31, 2019
2 unchanged sentences
Gross unrealized losses
−Removed: AFS fixed maturities:
treasury bonds
agency bonds – mortgage-backed
−Removed: agency bonds – other
government and supranational bonds
1 unchanged sentence
Corporate bonds
−Removed: Total AFS fixed maturities
−Removed: HTM fixed maturities:
−Removed: Corporate bonds
Municipal bonds
−Removed: Total HTM fixed maturities
Total fixed maturity investments
−Removed: MAIDEN HOLDINGS, LTD.
−Removed: NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
−Removed: (in thousands of U.S.
−Removed: dollars, except share and per share data)
−Removed: Investments (continued)
−Removed: The Company has historically classified its fixed maturity investments as either AFS or held-to-maturity ("HTM").
−Removed: The AFS portfolio is reported at fair value.
−Removed: The HTM portfolio at December 31, 2018 included securities for which we had the ability and intent to hold to maturity or redemption and was reported at amortized cost.
−Removed: When a security transferred from AFS to HTM, the fair value at the time of transfer, adjusted for subsequent amortization, becomes the security's amortized cost.
−Removed: When a security transferred from HTM to AFS, the security’s amortized cost basis carries over to the AFS category for the subsequent amortization of the historical premium or discount, comparisons of fair value and amortized cost for the purpose of determining unrealized holding gains and losses and required disclosures of amortized cost.
−Removed: The difference between the security’s amortized cost and fair value at the date of transfer into the AFS portfolio will be recognized as an unrealized gain or loss and recorded in accumulated other comprehensive income ("AOCI").
−Removed: Due to the termination of both AmTrust Reinsurance quota share contracts effective January 1, 2019, the Company no longer believed that it had the positive ability to hold the securities in the HTM portfolio to maturity because this portfolio served as part of the collateral for the AmTrust Reinsurance segment loss reserves.
−Removed: Therefore, the Company has reclassified and transferred all HTM securities to the AFS portfolio at their fair market value as at March 31, 2019 .
−Removed: The carrying value of the HTM securities at the time of transfer was $ 1,011,878 and the related unrealized gains of $ 14,230 have been reported in the fair value of the AFS securities as well as reported as a component of AOCI as at March 31, 2019 .
−Removed: The contractual maturities of our fixed maturities are shown below.
+Added: The contractual maturities of our fixed maturities are shown in the table below.
Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.
−Removed: September 30, 2019
+Added: March 31, 2020
Amortized cost
4 unchanged sentences
Asset-backed securities
−Removed: Total fixed maturities
+Added: Total fixed maturity investments
The following tables summarize fixed maturities in an unrealized loss position and the aggregate fair value and gross unrealized loss by length of time the security has continuously been in an unrealized loss position:
1 unchanged sentence
12 Months or More
−Removed: September 30, 2019
−Removed: Fixed maturities
+Added: March 31, 2020
+Added: treasury bonds
agency bonds – mortgage-backed
3 unchanged sentences
Total temporarily impaired fixed maturities
−Removed: At September 30, 2019 , there were approximately 126 securities in an unrealized loss position with a fair value of $ 493,948 and unrealized losses of $ 24,256 .
−Removed: Of these securities, there were 68 securities that have been in an unrealized loss position for 12 months or greater with a fair value of $ 306,817 and unrealized losses of $ 21,454 .
−Removed: MAIDEN HOLDINGS, LTD.
−Removed: NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
−Removed: (in thousands of U.S.
−Removed: dollars, except share and per share data)
−Removed: Investments (continued)
+Added: At March 31, 2020 , there were 184 securities in an unrealized loss position with a fair value of $ 549,130 and unrealized losses of $ 52,764 .
+Added: Of these securities, there were 50 securities that have been in an unrealized loss position for twelve months or greater with a fair value of $ 132,113 and unrealized losses of $ 21,035 .
Less than 12 Months
1 unchanged sentence
December 31, 2019
−Removed: Fixed maturities
−Removed: treasury bonds
agency bonds – mortgage-backed
−Removed: agency bonds – other
government and supranational bonds
1 unchanged sentence
Corporate bonds
−Removed: Municipal bonds
Total temporarily impaired fixed maturities
−Removed: At December 31, 2018 , there were approximately 348 securities in an unrealized loss position with a fair value of $ 2,783,643 and unrealized losses of $ 90,948 .
−Removed: Of these securities, there were 103 securities that have been in an unrealized loss position for 12 months or greater with a fair value of $ 1,188,564 and unrealized losses of $ 52,253 .
−Removed: Other-than-temporarily impaired ( " OTTI")
+Added: At December 31, 2019 , there were 104 securities in an unrealized loss position with a fair value of $ 386,299 and unrealized losses of $ 17,639 .
+Added: Of these securities, there were 67 securities that have been in an unrealized loss position for twelve months or greater with a fair value of $ 262,519 and unrealized losses of $ 16,815 .
+Added: MAIDEN HOLDINGS, LTD.
+Added: NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
+Added: (in thousands of U.S.
+Added: dollars, except share and per share data)
+Added: Investments (continued)
+Added: Other-than-temporarily impaired
The Company performs quarterly reviews of its fixed maturities in order to determine whether declines in fair value below the amortized cost basis were considered other-than-temporary in accordance with applicable guidance.
−Removed: At September 30, 2019 , we have determined that the unrealized losses on fixed maturities were primarily due to interest rates rising as well as the impact of foreign exchange rate changes on certain foreign currency denominated AFS fixed maturities since their date of purchase.
−Removed: All fixed maturity securities in the investment portfolio continue to pay the expected coupon payments under the contractual terms of the securities.
+Added: At March 31, 2020 , we determined that unrealized losses on fixed maturities were primarily due to changes in interest rates as well as the impact of foreign exchange rate changes on certain foreign currency denominated fixed maturities since their date of purchase.
+Added: All fixed maturity securities continue to pay the expected coupon payments under the contractual terms of the securities.
Any credit-related impairment related to fixed maturity securities that the Company does not plan to sell and for which the Company is not more likely than not to be required to sell is recognized in net earnings, with the non-credit related impairment recognized in comprehensive earnings.
−Removed: Based on our analysis, our fixed maturity portfolio is of high credit quality and we believe we will recover the amortized cost basis of our fixed maturity securities.
−Removed: We continually monitor the credit quality of our fixed maturity investments to assess if it is probable that we will receive our contractual or estimated cash flows in the form of principal and interest.
−Removed: For the three and nine months ended September 30, 2019 , we recognized $ 165 ( 2018 - $ 479 ) in OTTI charges in earnings on one fixed maturity security ( 2018 - one fixed maturity security).
−Removed: The following tables summarize the credit ratings of our fixed maturities as at September 30, 2019 and December 31, 2018 :
−Removed: September 30, 2019
+Added: Based on our analysis, our fixed maturity portfolio is of high credit quality and we believe the amortized cost basis of the securities will ultimately be recovered.
+Added: The Company continually monitors the credit quality of the fixed maturity investments to assess if it is probable that it will receive contractual or estimated cash flows in the form of principal and interest.
+Added: For the three months ended March 31, 2020 , we recognized $ 1,506 ( 2019 - $ 0 ) in OTTI charges in earnings on two fixed maturity securities.
+Added: The following tables summarize the credit ratings of our fixed maturities as at March 31, 2020 and December 31, 2019 :
+Added: March 31, 2020
Amortized cost
2 unchanged sentences
Total fixed maturities (1)
−Removed: MAIDEN HOLDINGS, LTD.
−Removed: NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
−Removed: (in thousands of U.S.
−Removed: dollars, except share and per share data)
−Removed: Investments (continued)
December 31, 2019
5 unchanged sentences
Other Investments
−Removed: The table below shows our portfolio of other investments:
−Removed: September 30, 2019
+Added: The table below shows the fair value of the Company's other investments as at March 31, 2020 and December 31, 2019 :
+Added: March 31, 2020
December 31, 2019
Investment in limited partnerships
−Removed: Investment in special purpose vehicles focused on lending activities
Total other investments
−Removed: The Company has a remaining unfunded commitment on its investment in limited partnerships of approximately $ 340 at September 30, 2019 ( December 31, 2018 - $ 414 ).
−Removed: The Company also has a remaining unfunded commitment on its investment in special purpose vehicles focused on lending activities of approximately $ 1,358 at September 30, 2019 ( December 31, 2018 - $ 7,359 ).
+Added: The Company also holds other investments made by special purpose vehicles related to lending activities of $ 29,196 at March 31, 2020 ( December 31, 2019 - $ 26,871 ).
+Added: These investments are carried at cost less impairment, if any, with any indication of impairment recognized in income when determined.
+Added: Because these investments are carried at cost, they are not included in the table above.
+Added: Please see "Note 5 - Fair Value Measurements" for additional information.
+Added: The Company has remaining unfunded commitments on its investment in limited partnerships of $ 333 at March 31, 2020 ( December 31, 2019 - $ 340 ).
+Added: The Company also has a remaining
+Added: MAIDEN HOLDINGS, LTD.
+Added: NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
+Added: (in thousands of U.S.
+Added: dollars, except share and per share data)
+Added: unfunded commitment on its investment in special purpose vehicles focused on lending activities of $ 1,296 at March 31, 2020 ( December 31, 2019 - $ 767 ).
+Added: Investments (continued)
Net Investment Income
Net investment income was derived from the following sources:
−Removed: For the Three Months Ended September 30,
−Removed: For the Nine Months Ended September 30,
+Added: For the Three Months Ended March 31,
Fixed maturities
2 unchanged sentences
Cash and cash equivalents and other
−Removed: Interest paid on LPT/ADC and Commutation (1)
Investment expenses
Net investment income
−Removed: (1) Interest expense includes:
−Removed: (1) Maiden Bermuda paid Enstar approximately $ 7,261 in interest related to the LPT/ADC Agreement premium, calculated at the rate of 2.64 % per annum from January 1, 2019 through August 12, 2019 ;
−Removed: (2) Maiden Bermuda paid AII approximately $ 6,335 in interest related to the Commutation Payment premium, calculated at the rate of 3.30 % per annum from January 1, 2019 through August 12, 2019 .
−Removed: Settlement of funding for the LPT/ADC Agreement and Commutation Payment occurred on August 12, 2019 by Maiden Bermuda's transfer of cash and invested assets as described in "Note 1.
−Removed: Basis of Presentation".
−Removed: MAIDEN HOLDINGS, LTD.
−Removed: NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
−Removed: (in thousands of U.S.
−Removed: dollars, except share and per share data)
−Removed: Investments (continued)
Realized Gains (Losses) on Investment
Realized gains or losses on the sale of investments are determined on the basis of the first in first out cost method.
−Removed: The following provides an analysis of net realized gains (losses) on investment included in the Condensed Consolidated Statements of Income:
−Removed: For the Three Months Ended September 30, 2019
−Removed: AFS fixed maturities
−Removed: Other investments
−Removed: Net realized gains (losses) on investment
−Removed: For the Three Months Ended September 30, 2018
−Removed: AFS fixed maturities
−Removed: Other investments
−Removed: Net realized gains (losses) on investment
−Removed: For the Nine Months Ended September 30, 2019
−Removed: AFS fixed maturities
+Added: The following tables show the net realized gains (losses) on investment included in the Condensed Consolidated Statements of Income:
+Added: For the Three Months Ended March 31, 2020
+Added: Fixed maturities
Other investments
Net realized gains (losses) on investment
−Removed: For the Nine Months Ended September 30, 2018
−Removed: AFS fixed maturities
+Added: For the Three Months Ended March 31, 2019
+Added: Fixed maturities
Other investments
Net realized gains (losses) on investment
−Removed: Proceeds from sales of AFS fixed maturities were $ 136,347 and $ 845,962 for the three and nine months ended September 30, 2019 , respectively ( 2018 - $ 68,534 and $ 185,089 , respectively).
−Removed: Net unrealized gains (losses) on investments, including those allocated to discontinued operations and classified as held for sale, were as follows:
−Removed: September 30, 2019
+Added: Proceeds from sales of fixed maturities were $ 224,471 for the three months ended March 31, 2020 ( 2019 - $ 84,361 ).
+Added: Net unrealized (losses) gains on investments were as follows at March 31, 2020 and December 31, 2019 , respectively:
+Added: March 31, 2020
December 31, 2019
3 unchanged sentences
Change, net of deferred income tax
−Removed: The portion of net unrealized gains (losses) recognized in net loss for the three and nine months ended September 30, 2019 and 2018 that are related to other investments still held at the end of the reporting period were as follows:
−Removed: For the Three Months Ended September 30,
−Removed: Net gains recognized in net income on other investments during the period
−Removed: Net realized gains recognized on other investments divested during the period
−Removed: Net unrealized losses recognized on other investments still held at end of period
−Removed: For the Nine Months Ended September 30,
−Removed: Net gains recognized in net income on other investments during the period
−Removed: Net realized gains recognized on other investments divested during the period
−Removed: Net unrealized (losses) gains recognized on other investments still held at end of period
+Added: Restricted Cash and Cash Equivalents and Investments
+Added: The Company is required to provide collateral for its reinsurance liabilities under various reinsurance agreements and utilizes trust accounts to collateralize business with reinsurance counterparties.
+Added: The assets in trust as collateral are primarily cash and highly rated fixed maturities.
+Added: The fair values of these restricted assets were as follows at March 31, 2020 and December 31, 2019 :
MAIDEN HOLDINGS, LTD.
2 unchanged sentences
dollars, except share and per share data)
−Removed: Investments (continued)
−Removed: Restricted Cash and Cash Equivalents and Investments
−Removed: We are required to maintain assets on deposit to support our reinsurance operations and to serve as collateral for our reinsurance liabilities under various reinsurance agreements.
−Removed: We also utilize trust accounts to collateralize business with our reinsurance counterparties.
−Removed: The assets in trust as collateral are primarily cash and highly rated fixed maturities.
−Removed: The fair value of our restricted assets was as follows:
−Removed: September 30, 2019
+Added: March 31, 2020
December 31, 2019
10 unchanged sentences
Total restricted cash and investments
+Added: MAIDEN HOLDINGS, LTD.
+Added: NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
+Added: (in thousands of U.S.
+Added: dollars, except share and per share data)
Fair Value of Financial Instruments
(a) Fair Values of Financial Instruments
−Removed: Fair Value Measurements — ASC Topic 820, "Fair Value Measurements and Disclosures" ("ASC 820") defines fair value as the price that would be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between open market participants at the measurement date.
+Added: Fair Value Measurements — Accounting Standards Codification ("ASC") Topic 820, "Fair Value Measurements and Disclosures" ("ASC 820") defines fair value as the price that would be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between open market participants at the measurement date.
Additionally, ASC 820 establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available.
29 unchanged sentences
The Company determines whether the fair value estimate is in the Level 2 or Level 3 hierarchy depending on the level of observable inputs available when estimating the fair value.
−Removed: MAIDEN HOLDINGS, LTD.
−Removed: NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
−Removed: (in thousands of U.S.
−Removed: dollars, except share and per share data)
−Removed: Fair Value of Financial Instruments (continued)
The Company bases its estimates of fair values for assets on the bid price as it represents what a third party market participant would be willing to pay in an orderly transaction.
ASC 825, "Disclosure About Fair Value of Financial Instruments" , requires all entities to disclose the fair value of their financial instruments, both assets and liabilities recognized and not recognized in the balance sheet, for which it is practicable to estimate fair value.
−Removed: The following describes the valuation techniques used by the Company to determine the fair value of financial instruments held at September 30, 2019 and December 31, 2018 .
+Added: The following describes the valuation techniques used by the Company to determine the fair value of financial instruments held at March 31, 2020 and December 31, 2019 .
government and U.S.
19 unchanged sentences
As the significant inputs used to price the CMBS and CLO are observable market inputs, the fair value of the CMBS and CLO securities are included in the Level 2 fair value hierarchy.
−Removed: Corporate bonds — Bonds issued by corporations that on acquisition are rated BBB-/Baa3 or higher.
−Removed: These securities are generally priced by independent pricing services.
−Removed: The spreads are sourced from broker/dealers, trade prices and the new issue market.
−Removed: Where pricing is unavailable from pricing services, we obtain non-binding quotes from broker-dealers.
−Removed: As the significant inputs used to price corporate bonds are observable market inputs, the fair values of corporate bonds are included in the Level 2 fair value hierarchy.
−Removed: Municipal bonds — Bonds issued by U.S.
−Removed: state and municipality entities or agencies.
−Removed: The fair values of municipal bonds are generally priced by independent pricing services.
−Removed: The pricing services typically use spreads obtained from broker-dealers, trade prices and the new issue market.
−Removed: As the significant inputs used to price the municipal bonds are observable market inputs, municipal bonds are included in the Level 2 fair value hierarchy.
−Removed: Other investments — Includes unquoted investments comprised of investments in limited partnerships and other investments which includes investments in special purpose vehicles focused on lending activities as well as investments in start-up insurance entities.
−Removed: The fair values of the limited partnerships are determined by the fund manager based on recent filings, operating results, balance sheet stability, growth and other business and market sector fundamentals.
−Removed: The fair value of these investments are measured using the NAV practical expedient and therefore have not been categorized within the fair value hierarchy.
−Removed: If there is a reporting lag between the current period end and reporting date of the latest available fund valuation, we estimate fair values by starting with the most recently available valuation and adjusting for return estimates as well as any subscriptions and distributions that took place during the current period.
−Removed: The fair value of the investments in special purpose vehicles focused on lending activities is initially at cost which approximates fair value.
−Removed: In some cases this initial period could be more than a year depending on the nature of the investment.
−Removed: Currently, all of our investments in special purpose vehicles focused on lending activities are held at cost which approximates fair value.
−Removed: In subsequent measurement periods, the fair values of these investments may be determined using an internally developed discounted cash flow model.
−Removed: As the significant inputs used to price these securities are unobservable, the fair value of these investments are classified as Level 3.
−Removed: The fair value of the remaining other investments, primarily start-up insurance entities, was determined using recent private market transactions and as such, the fair value is included in the Level 3 fair value hierarchy.
−Removed: Cash and cash equivalents (including restricted amounts), accrued investment income, reinsurance balances receivable, and certain other assets and liabilities — The carrying values reported in the Condensed Consolidated Balance Sheets for these financial instruments approximate their fair value due to their short term nature and are classified as Level 2.
−Removed: Loan to related party, reinsurance recoverable on unpaid losses, and funds withheld receivable — The carrying values reported in the Condensed Consolidated Balance Sheets for these financial instruments approximate their fair value and are included in the Level 2 hierarchy.
−Removed: Senior notes — The amount reported in the Condensed Consolidated Balance Sheets for these financial instruments represents the carrying value of the notes.
−Removed: The fair values are based on indicative market pricing obtained from a third-party service provider and as such, are included in the Level 2 hierarchy.
MAIDEN HOLDINGS, LTD.
3 unchanged sentences
Fair Value of Financial Instruments (continued)
+Added: Corporate and municipal bonds — Bonds issued by corporations, U.S.
+Added: state and municipality entities or agencies that on acquisition are rated BBB-/Baa3 or higher.
+Added: These securities are generally priced by independent pricing services.
+Added: The credit spreads are sourced from broker/dealers, trade prices and the new issue market.
+Added: Where pricing is unavailable from pricing services, custodian pricing or non-binding quotes are obtained from broker-dealers to estimate fair values.
+Added: As the significant inputs used to price corporate and municipal bonds are observable market inputs, the fair values are included in the Level 2 fair value hierarchy.
+Added: Other investments — Includes unquoted investments comprised of investments in limited partnerships and other investments which includes investments in special purpose vehicles focused on lending activities as well as investments in start-up insurance entities.
+Added: The fair values of the limited partnerships are determined by the fund manager based on recent filings, operating results, balance sheet stability, growth and other business and market sector fundamentals.
+Added: The fair value of these investments are measured using the NAV practical expedient and therefore have not been categorized within the fair value hierarchy.
+Added: If there is a reporting lag between the current period end and reporting date of the latest available fund valuation, fair values are estimated by starting with the most recently available valuation and adjusting for return estimates as well as any subscriptions and distributions that took place during the current period.
+Added: The investments made by special purpose vehicles focused on lending activities are carried at cost less impairment, if any, with any indication of impairment recognized in income when determined.
+Added: As these investments are carried at cost, they are not included in the fair value hierarchy below.
+Added: The fair value of the start-up insurance entities are determined using recent private market transactions and as such, the fair value of these investments are included in the Level 3 fair value hierarchy.
+Added: Cash and cash equivalents (including restricted amounts), accrued investment income, reinsurance balances receivable, and certain other assets and liabilities — The carrying values reported in the Condensed Consolidated Balance Sheets for these financial instruments approximate their fair value due to their short term nature and are classified within the Level 2 fair value hierarchy.
+Added: Loan to related party, reinsurance recoverable on unpaid losses, and funds withheld receivable — The carrying values reported in the Condensed Consolidated Balance Sheets for these financial instruments approximate their fair value and are included in the Level 2 fair value hierarchy.
+Added: Senior notes — The carrying value for these financial instruments represents the principal value of the notes less any unamortized issuance costs.
+Added: The fair values of the senior notes are based on indicative market pricing obtained from a third-party service provider and as such, are included in the Level 2 fair value hierarchy.
(b) Fair Value Hierarchy
3 unchanged sentences
In determining the level of the hierarchy in which the estimate is disclosed, the highest priority is given to unadjusted quoted prices in active markets and the lowest priority to unobservable inputs that reflect the Company’s significant market assumptions.
−Removed: At September 30, 2019 and December 31, 2018 , we classified our financial instruments measured at fair value on a recurring basis in the following valuation hierarchy:
−Removed: September 30, 2019
+Added: At March 31, 2020 and December 31, 2019 , the Company classified its financial instruments measured at fair value on a recurring basis in the following valuation hierarchy:
+Added: March 31, 2020
Quoted Prices in Active Markets for Identical Assets (Level 1)
3 unchanged sentences
Total Fair Value
−Removed: AFS fixed maturities
+Added: Fixed maturities
treasury bonds
3 unchanged sentences
Corporate bonds
−Removed: Municipal bonds
Other investments
As a percentage of total assets
+Added: MAIDEN HOLDINGS, LTD.
+Added: NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
+Added: (in thousands of U.S.
+Added: dollars, except share and per share data)
+Added: Fair Value of Financial Instruments (continued)
December 31, 2019
4 unchanged sentences
Total Fair Value
−Removed: AFS fixed maturities
+Added: Fixed maturities
treasury bonds
agency bonds – mortgage-backed
−Removed: agency bonds – other
government and supranational bonds
1 unchanged sentence
Corporate bonds
+Added: Municipal bonds
Other investments
As a percentage of total assets
−Removed: The Company utilizes the Pricing Service to assist in determining the fair value of our investments;
+Added: The Company utilizes the Pricing Service to assist in determining the fair value of its investments;
however, management is ultimately responsible for all fair values presented in the Company’s financial statements.
1 unchanged sentence
The Company analyzes and reviews the information and prices received from the Pricing Service to ensure that the prices represent a reasonable estimate of the fair value.
−Removed: The Pricing Service was utilized to estimate fair value measurements for approximately 99.7 % and 99.9 % of our fixed maturities at September 30, 2019 and December 31, 2018 , respectively.
+Added: The Pricing Service was utilized to estimate fair value measurements for 99.6 % and 99.7 % of our fixed maturities at March 31, 2020 and December 31, 2019 , respectively.
The Pricing Service utilizes market quotations for fixed maturity securities that have quoted market prices in active markets.
−Removed: Since fixed maturities other than U.S.
−Removed: treasury bonds generally do not trade actively on a daily basis, the Pricing Service prepares estimates of fair value measurements using relevant market data, benchmark curves, sector groupings and matrix pricing and these have been classified as Level 2.
−Removed: MAIDEN HOLDINGS, LTD.
−Removed: NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
−Removed: (in thousands of U.S.
−Removed: dollars, except share and per share data)
−Removed: Fair Value of Financial Instruments (continued)
−Removed: At September 30, 2019 and December 31, 2018 , approximately 0.3 % and 0.1 % , respectively, of the Level 2 fixed maturities are valued using the market approach.
−Removed: At September 30, 2019 and December 31, 2018 , one security or $ 5,328 and $ 5,676 , respectively, of Level 2 fixed maturities, was priced using a quotation from a broker and/or custodian as opposed to the Pricing Service due to lack of information available.
−Removed: At September 30, 2019 and December 31, 2018 , we have not adjusted any pricing provided to us based on the review performed by our investment managers.
−Removed: There were no transfers between Level 1 and Level 2 and there were no transfers to or from Level 3 during the periods represented by these Condensed Consolidated Financial Statements.
+Added: Because fixed maturities other than U.S.
+Added: treasury bonds generally do not trade actively on a daily basis, the Pricing Service prepares estimates of fair value measurements using relevant market data, benchmark curves, sector groupings and matrix pricing and these have been classified as Level 2 within the fair value hierarchy.
+Added: At March 31, 2020 and December 31, 2019 , 0.4 % and 0.3 % , respectively, of the Level 2 fixed maturities are valued using the market approach.
+Added: At March 31, 2020 and December 31, 2019 , one security or $ 5,392 and $ 5,481 , respectively, of Level 2 fixed maturities, was priced using a quotation from a broker and/or custodian as opposed to the Pricing Service due to lack of information available.
+Added: At March 31, 2020 and December 31, 2019 , the Company has not adjusted any pricing provided to it based on the review performed by its investment managers.
+Added: During the year ended December 31, 2019 , the Company transferred its investment in special purpose vehicles focused on lending activities out of Level 3 within the fair value hierarchy due to a change in accounting policy to report these investments at cost less any impairment instead of fair market value.
+Added: There were no other transfers to or from Level 3 during the periods represented by these Condensed Consolidated Financial Statements.
(c) Level 3 Financial Instruments
−Removed: At September 30, 2019 , the Company has other investments of $ 27,333 (December 31, 2018 - $ 19,883 ) which includes investments in special purpose vehicles focused on lending activities as well as investments in start-up insurance entities.
−Removed: The fair value of the investments in special purpose vehicles focused on lending activities is initially at cost which approximates fair value.
−Removed: In subsequent measurement periods, the fair values of these investments may be determined using an internally developed discounted cash flow model.
−Removed: The fair value of investments in start-up insurance entities was determined using recent private market transactions.
−Removed: Due to the significant unobservable inputs in these valuations, the Company includes the estimate of the fair value of each of these other investments as Level 3.
+Added: At March 31, 2020 , the Company has other investments of $ 1,800 (December 31, 2019 - $ 1,800 ) which includes investments in start-up insurance entities.
+Added: Due to significant unobservable inputs in these valuations, the Company classifies the fair value estimate of these other investments as Level 3 within the fair value hierarchy.
(d) Financial Instruments not measured at Fair Value
−Removed: The following table presents the fair value and carrying value or principal amount of the financial instruments not measured at fair value:
−Removed: September 30, 2019
+Added: The following table presents the respective carrying value and fair value for the financial instruments not measured at fair value on the Condensed Consolidated Balance Sheets as at March 31, 2020 and December 31, 2019 , respectively:
+Added: March 31, 2020
December 31, 2019
−Removed: Financial Assets
Carrying Value
Carrying Value
−Removed: HTM – corporate bonds
−Removed: HTM – municipal bonds
−Removed: Total financial assets
Financial Liabilities
8 unchanged sentences
Treaty Reinsurance operations
−Removed: As described in " Note 1.
−Removed: Basis of Presentation ", the Company entered into a Renewal Rights transaction with TransRe on August 29, 2018.
−Removed: The Company continued to earn premiums and remain liable for losses occurring subsequent to August 29, 2018 for any policies in force prior to and as of August 29, 2018, through December 27, 2018, the date the sale of Maiden US was closed pursuant to the U.S.
−Removed: Sale Agreement with Enstar Holdings.
−Removed: Maiden US was a substantial portion of our Diversified Reinsurance segment;
−Removed: therefore the Company concluded that the sale represented a strategic shift that has a major effect on its ongoing operations and financial results and that all of the held for sale criteria have been met.
+Added: As described in Part II of our Annual Report on Form 10-K for the year ended December 31, 2019 , the Company entered into a renewal rights transaction with Transatlantic Reinsurance Company on August 29, 2018 and subsequently sold Maiden US on December 27, 2018 to Enstar.
+Added: Maiden US was a substantial portion of the Diversified Reinsurance segment;
+Added: therefore the Company concluded that the sale represented a strategic shift that has a major effect on its ongoing operations and financial results and that all of the held for sale criteria were met.
Accordingly, all transactions related to the U.S.
−Removed: treaty reinsurance operations are reported and presented as part of discontinued operations and all of the remaining assets and liabilities related to the true up of sale consideration are classified as held for sale in the Consolidated Balance Sheet as at December 31, 2018 .
−Removed: As described in "Note 1.
−Removed: Basis of Presentation", Cavello and Maiden Bermuda entered into a retrocession agreement pursuant to which certain assets and liabilities associated with the U.S.
−Removed: treaty reinsurance business held by Maiden Bermuda were retroceded to Cavello on December 27, 2018.
−Removed: Previously, the assets and liabilities related to this business including the retrocession agreement were classified as held for sale, however, a decision has been made to reclassify them as held and used in the current period as it is now considered unlikely that these reserves will be novated in the foreseeable future;
−Removed: therefore, there are no remaining assets and liabilities classified as held for sale as at September 30, 2019 .
−Removed: Furthermore, the assets and liabilities related to this business as at December 31, 2018 have been reclassified from held for sale to conform to the current presentation.
−Removed: The assets and liabilities that are classified as held for sale as of September 30, 2019 and December 31, 2018 comprise:
−Removed: September 30, 2019
−Removed: December 31, 2018
−Removed: Fixed maturities, available-for-sale, at fair value
−Removed: Restricted cash and cash equivalents
−Removed: Total assets held for sale
−Removed: Reserve for loss and loss adjustment expenses
−Removed: Accrued expenses and other liabilities
−Removed: Total liabilities held for sale
−Removed: The following table summarizes the major classes of items constituting the results from discontinued operations for the three and nine months ended September 30, 2019 and 2018 , respectively, presented in the Condensed Consolidated Statements of Income:
−Removed: For the Three Months Ended September 30,
−Removed: For the Nine Months Ended September 30,
−Removed: Gross premiums written
−Removed: Net premiums written
−Removed: Net premiums earned
−Removed: Other revenue
−Removed: Net investment income
−Removed: Net loss and loss adjustment expenses
−Removed: Commission and other acquisition expenses
+Added: treaty reinsurance operations are reported and presented as part the results from discontinued operations in the Condensed Consolidated Statements of Income.
+Added: As described in Part II of our Annual Report on Form 10-K for the year ended December 31, 2019 , Cavello Bay Reinsurance Limited ("Cavello"), Enstar’s Bermuda reinsurance affiliate, and Maiden Reinsurance entered into a retrocession agreement pursuant to which certain assets and liabilities associated with the U.S.
+Added: treaty reinsurance business held by Maiden Reinsurance were retroceded to Cavello on December 27, 2018.
+Added: As at December 31, 2018 , the assets and liabilities related to this business including the retrocession agreement were classified as held for sale, however, a decision was made to reclassify them as it is now considered unlikely that these reserves will be novated in the foreseeable future;
+Added: therefore, there are no remaining assets and liabilities classified as held for sale as at March 31, 2020 and December 31, 2019 .
+Added: The following table summarizes the major classes of items constituting the net loss from discontinued operations for the three months ended March 31, 2019 presented in the unaudited Condensed Consolidated Statements of Income:
+Added: For the Three Months Ended March 31,
General and administrative expenses
−Removed: Amortization of intangible assets
−Removed: (Loss) income from discontinued operations before income tax
+Added: Expense from discontinued operations before income tax
Loss on disposal of discontinued operations
−Removed: Income tax benefit (expense)
Loss from discontinued operations, net of income tax
−Removed: As described in "Note 1.
−Removed: Basis of Presentation", as a result of the Settlement and Commutation Agreement entered into by Maiden and Enstar Holdings on July 31, 2019, Maiden recorded an additional loss from discontinued operations of $ 16,715 for the nine months ended September 30, 2019 .
−Removed: MAIDEN HOLDINGS, LTD.
−Removed: NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
−Removed: (in thousands of U.S.
−Removed: dollars, except share and per share data)
Long-Term Debt
−Removed: At September 30, 2019 and December 31, 2018 , both Maiden Holdings and its wholly owned subsidiary, Maiden NA, have outstanding publicly-traded debt offering of senior notes which were issued in 2016 and 2013, respectively ("Senior Notes").
+Added: At March 31, 2020 and December 31, 2019 , both Maiden Holdings and its wholly owned subsidiary, Maiden NA, have outstanding publicly-traded senior notes which were issued in 2016 (" 2016 Senior Notes ") and 2013 (" 2013 Senior Notes "), respectively (collectively "Senior Notes").
The 2013 Senior Notes issued by Maiden NA are fully and unconditionally guaranteed by Maiden Holdings.
The Senior Notes are unsecured and unsubordinated obligations of the Company.
−Removed: The following table details the Company's Senior Notes issuances outstanding at September 30, 2019 and December 31, 2018 :
−Removed: September 30, 2019
+Added: The following tables detail the issuances of Senior Notes outstanding at March 31, 2020 and December 31, 2019 :
+Added: March 31, 2020
2016 Senior Notes
13 unchanged sentences
June 14, 2046
+Added: December 1, 2043
Earliest redeemable date (for cash)
June 14, 2021
+Added: December 1, 2018
Effective interest rate
−Removed: The interest expense incurred on the Senior Notes for the three and nine months ended September 30, 2019 was $ 4,777 and $ 14,330 , respectively ( 2018 - $ 4,776 and $ 14,329 , respectively) of which $ 1,342 was accrued at both September 30, 2019 and December 31, 2018 , respectively.
+Added: The interest expense incurred on the Senior Notes for the three months ended March 31, 2020 was $ 4,777 ( 2019 - $ 4,776 ), of which $ 1,342 was accrued at both March 31, 2020 and December 31, 2019 , respectively.
The issuance costs related to the Senior Notes were capitalized and are being amortized over the effective life of the Senior Notes.
−Removed: The amortization expense for the three and nine months ended September 30, 2019 was $ 54 and $ 160 , respectively ( 2018 - $ 53 and $ 158 , respectively).
−Removed: Under the terms of the 2013 Senior Notes, the 2013 Senior Notes can be redeemed, in whole or in part after December 1, 2018 at Maiden NA's option at any time and from time to time, until maturity at a redemption price equal to 100 % of the principal amount of the notes to be redeemed plus accrued but unpaid interest on the principal amount being redeemed to, but not including, the redemption date.
−Removed: Maiden NA is required to give at least thirty and not more than sixty days notice prior to the redemption date.
−Removed: However, as part of the Company's remediation measures to improve its capital ratios and adequacy, Maiden has voluntarily undertaken with the BMA to not voluntarily redeem the 2013 Senior Notes without its prior written approval.
+Added: The amortization expense for the three months ended March 31, 2020 was $ 54 ( 2019 - $ 53 ).
MAIDEN HOLDINGS, LTD.
2 unchanged sentences
dollars, except share and per share data)
+Added: Long-Term Debt (continued)
+Added: Under the terms of the 2013 Senior Notes , the 2013 Senior Notes can be redeemed, in whole or in part after December 1, 2018 at Maiden NA's option at any time and from time to time, until maturity at a redemption price equal to 100 % of the principal amount of the notes to be redeemed plus accrued but unpaid interest on the principal amount being redeemed to, but not including, the redemption date.
+Added: Maiden NA is required to give at least thirty and not more than sixty days notice prior to the redemption date.
The Company uses reinsurance and retrocessional agreements ("ceded reinsurance") to mitigate volatility, reduce its exposure to certain risks and provide capital support.
−Removed: Additionally, Maiden Bermuda entered into a number of retrocessional quota share agreements with a highly rated global insurer to cede certain lines of business from both of our reportable segments.
−Removed: Effective July 1, 2018, Maiden Bermuda commuted all of these retrocessional quota share agreements.
−Removed: Effective on July 31, 2019, Maiden Bermuda and Cavello entered into a retroactive reinsurance agreement, the LPT/ADC Agreement, pursuant to which, Cavello will assume liabilities for the loss reserves as of December 31, 2018 associated with the AmTrust Quota Share in excess of a $ 2,178,535 retention up to $ 600,000 , in exchange for a retrocession premium of $ 445,000 .
−Removed: The $ 2,178,535 retention will be subject to adjustment for paid losses subsequent to December 31, 2018 .
−Removed: Please see " Note 1.
−Removed: Basis of Presentation " for further details.
−Removed: Each of these agreements provide for recovery from reinsurers or retrocessionaires of a portion of loss and LAE under certain circumstances without relieving the Company of its obligations to the policyholders.
−Removed: The Company remains liable to the extent that any of our reinsurers or retrocessionaires fails to meet their obligations.
−Removed: Loss and LAE incurred and premiums earned are reported after deduction for reinsurance and retrocession.
−Removed: In the event that one or more of our reinsurers or retrocessionaires are unable to meet their obligations under these reinsurance or retrocessional agreements, the Company would not realize the full value of the reinsurance recoverable balances.
−Removed: The effect of ceded reinsurance on net premiums written and earned and on net loss and LAE for the nine months ended September 30, 2019 and 2018 was as follows:
−Removed: For the Nine Months Ended September 30,
+Added: Ceded reinsurance provides for the recovery of a portion of loss and LAE under certain circumstances without relieving the Company of its obligations to the policyholders.
+Added: The Company remains liable to the extent that any of its reinsurers or retrocessionaires fails to meet their obligations.
+Added: Loss and LAE incurred and premiums earned are reported after deduction for ceded reinsurance.
+Added: In the event that one or more of our reinsurers or retrocessionaires are unable to meet their obligations under these agreements, the Company would not realize the full value of the reinsurance recoverable balances.
+Added: The effect of ceded reinsurance on net premiums written and earned and on net loss and LAE for the three months ended March 31, 2020 and 2019 was as follows:
+Added: For the Three Months Ended March 31,
Premiums written
2 unchanged sentences
Loss and LAE ceded
−Removed: The Company's reinsurance recoverable on unpaid losses balance at September 30, 2019 was $ 615,481 ( December 31, 2018 - $ 71,901 ) presented in the Condensed Consolidated Balance Sheets.
−Removed: At September 30, 2019 and 2018 , the Company had no valuation allowance against reinsurance recoverable on unpaid losses.
+Added: The Company's reinsurance recoverable on unpaid losses balance as at March 31, 2020 was $ 620,882 ( December 31, 2019 - $ 623,422 ) presented in the Condensed Consolidated Balance Sheets.
+Added: At March 31, 2020 and December 31, 2019 , the Company had no valuation allowance against reinsurance recoverable on unpaid losses.
As discussed in "Note 1.
−Removed: Organization" , on December 27, 2018, Cavello and Maiden Bermuda entered into a retrocession agreement pursuant to which certain assets and liabilities associated with the U.S.
−Removed: treaty reinsurance business held by Maiden Bermuda were retroceded to Cavello in exchange for a ceding commission.
−Removed: The balance of reinsurance recoverable on unpaid losses due from Cavello under this retrocession agreement was $ 64,018 at September 30, 2019 ( December 31, 2018 - $ 70,158 ).
−Removed: Additionally, the LPT/ADC Agreement discussed above provides Maiden Bermuda with $ 155,000 in adverse development cover over its carried AmTrust Quota Share loss reserves at December 31, 2018 .
+Added: Organization" , on December 27, 2018, Cavello and Maiden Reinsurance entered into a retrocession agreement pursuant to which certain assets and liabilities associated with the U.S.
+Added: treaty reinsurance business held by Maiden Reinsurance were retroceded to Cavello in exchange for a ceding commission.
+Added: The balance of reinsurance recoverable on unpaid losses due from Cavello under this retrocession agreement was $ 60,281 at March 31, 2020 ( December 31, 2019 - $ 62,699 ).
+Added: On July 31, 2019, Maiden Reinsurance and Cavello entered into the LPT/ADC Agreement, pursuant to which Cavello assumed the loss reserves as of December 31, 2018 associated with the AmTrust Quota Share in excess of a $ 2,178,535 retention up to $ 600,000 , in exchange for a retrocession premium of $ 445,000 .
+Added: The $ 2,178,535 retention is subject to adjustment for paid losses subsequent to December 31, 2018 .
+Added: Please see " Note 1.
+Added: Basis of Presentation " for further details.
+Added: The LPT/ADC Agreement provides Maiden Reinsurance with $ 155,000 in adverse development cover over its carried AmTrust Quota Share loss reserves at December 31, 2018 .
The LPT/ADC Agreement meets the criteria for risk transfer and is thus accounted for as retroactive reinsurance.
2 unchanged sentences
Consequently, cumulative adverse development subsequent to December 31, 2018 may result in significant losses from operations until periods when the deferred gain is recognized as a benefit to earnings.
−Removed: Reinsurance recoverable on unpaid losses under the retroactive reinsurance agreement were $ 549,542 and the deferred gain liability was $ 104,542 as of September 30, 2019 .
−Removed: Amortization of the deferred gain will not occur until paid losses have exceeded the minimum retention under the ADC.
−Removed: The current estimated payout period for the losses covered by the LPT/ADC Agreement before the minimum retention is exceeded is approximately five years .
+Added: As of March 31, 2020 , the reinsurance recoverable on unpaid losses under the retroactive reinsurance agreement were $ 557,950 while the deferred gain liability was $ 112,950 ( December 31, 2019 - $ 557,950 and $ 112,950 , respectively).
+Added: Amortization of the deferred gain will not occur until paid losses have exceeded the minimum retention under the LPT/ADC Agreement, which is estimated to be in 2024 .
+Added: Cavello has provided collateral in the form of a letter of credit in the amount of $ 445,000 to AmTrust under the LPT/ADC Agreement and Cavello is subject to additional collateral funding requirements as explained in "Note 10.
+Added: Related Party Transactions" .
+Added: Under the terms of the LPT/ADC Agreement, the covered losses associated with the Commutation and Release Agreement with AmTrust are eligible to be covered but recoverable only when such losses are paid or settled by AII or its affiliates, provided such losses and other related amounts shall not exceed $ 312,786 .
+Added: Cavello's parent company, Enstar, has credit ratings of BBB from both Standard &Poor's and Fitch Ratings at March 31, 2020 .
MAIDEN HOLDINGS, LTD.
2 unchanged sentences
dollars, except share and per share data)
−Removed: Reinsurance (continued)
−Removed: Cavello has provided collateral in the form of a letter of credit in the amount of $ 445,000 to AmTrust under the LPT/ADC Agreement and is subject to additional collateral funding requirements as explained in "Note 10.
−Removed: Related Party Transactions" .
−Removed: Under the terms of the LPT/ADC Agreement, the covered losses associated with the Commutation and Release Agreement with AmTrust, as discussed in " Note 1.
−Removed: Basis of Presentation", are eligible to be covered but recoverable only when such losses are paid or settled by AII or its affiliates, provided such losses and other related amounts shall not exceed $ 312,786 .
−Removed: Cavello's parent company, Enstar, has credit ratings of BBB from both Standard &Poor's and Fitch Ratings at September 30, 2019 .
Reserve for Loss and Loss Adjustment Expenses
The Company uses both historical experience and industry-wide loss development factors to provide a reasonable basis for estimating future losses.
−Removed: In the future, certain events may be beyond the control of management, such as changes in law, judicial interpretations of law, and inflation, which may favorably or unfavorably impact the ultimate settlement of the Company’s loss and LAE reserves.
+Added: In the future, certain events may be beyond the control of management, such as changes in law, judicial interpretations of law, and rates of inflation, which may favorably or unfavorably impact the ultimate settlement of the Company’s loss and LAE reserves.
The anticipated effect of inflation is implicitly considered when estimating liabilities for loss and LAE.
While anticipated changes in claim costs due to inflation are considered in estimating the ultimate claim costs, changes in average severity of claims are caused by a number of factors that vary with the individual type of policy written.
−Removed: Ultimate losses are projected based on historical trends adjusted for implemented changes in underwriting standards, policy provisions, and general economic trends.
+Added: Ultimate losses are projected based on historical trends adjusted for implemented changes in underwriting standards, claims handling, policy provisions, and general economic trends.
Those anticipated trends are monitored based on actual development and are modified if necessary.
−Removed: The reserving process begins with the collection and analysis of paid losses and incurred claims data for each of our contracts.
−Removed: While reserves are reviewed on a contract by contract basis, paid losses and incurred claims data is also aggregated into reserving segments.
+Added: The reserving process begins with the collection and analysis of paid losses and incurred claims data for each of the Company's contracts.
+Added: While reserves are mostly reviewed on a contract by contract basis, paid loss and incurred claims data is also aggregated into reserving segments.
The segmental data is disaggregated by reserving class and further disaggregated by either accident year (i.e.
1 unchanged sentence
the year in which the contract generating the premium and losses incepted).
−Removed: The Company in some cases uses underwriting year information to analyze our Diversified Reinsurance segment and subsequently allocate reserves to the respective accident years.
−Removed: Our reserve for loss and LAE consists of:
−Removed: September 30, 2019
+Added: The Company in some cases uses underwriting year information to analyze the Diversified Reinsurance segment and subsequently allocate reserves to the respective accident years.
+Added: The reserve for loss and LAE consists of:
+Added: March 31, 2020
December 31, 2019
3 unchanged sentences
The following table represents a reconciliation of our beginning and ending gross and net loss and LAE reserves:
−Removed: For the Nine Months Ended September 30,
+Added: For the Three Months Ended March 31,
Gross loss and LAE reserves, January 1
3 unchanged sentences
Net paid losses related to:
−Removed: Retroactive reinsurance adjustment
Effect of foreign exchange rate movements
−Removed: Other adjustments
−Removed: Net loss and LAE reserves, September 30
−Removed: Reinsurance recoverable on unpaid losses, September 30
−Removed: Gross loss and LAE reserves, September 30
−Removed: Commencing in 2015, Maiden Bermuda entered into a number of retrocessional quota share agreements with a highly rated global insurer to cede certain lines of business from both of our reportable segments.
−Removed: Effective July 1, 2018, Maiden Bermuda commuted all of these retrocessional quota share agreements.
−Removed: MAIDEN HOLDINGS, LTD.
−Removed: NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
−Removed: (in thousands of U.S.
−Removed: dollars, except share and per share data)
−Removed: Reserve for Loss and Loss Adjustment Expenses (continued)
+Added: Net loss and LAE reserves, March 31
+Added: Reinsurance recoverable on unpaid losses, March 31
+Added: Gross loss and LAE reserves, March 31
Prior period development arises from changes to loss estimates recognized in the current year that relate to loss reserves in previous calendar years.
−Removed: The development reflects changes in management's best estimate of the ultimate losses under the relevant reinsurance policies after review of changes in actuarial assessments.
−Removed: During the three and nine months ended September 30, 2019 , the Company recognized net adverse prior year loss development of $ 63,184 and $ 96,456 , respectively ( 2018 - adverse $ 212,473 and $ 250,451 , respectively) before the impact of the LPT/ADC Agreement with Cavello.
−Removed: In the Diversified Reinsurance segment, the net prior year loss development was adverse $ 692 and favorable $ 1,456 for the three and nine months ended September 30, 2019 , respectively ( 2018 - adverse $ 671 and $ 1,756 , respectively).
−Removed: The favorable development for the nine months ended September 30, 2019 was primarily due to favorable reserve development in German Auto programs as well as facultative reinsurance run-off lines.
−Removed: The adverse development for the three months ended September 30, 2019 and the three and nine months ended September 30, 2018 was due to facultative reinsurance run-off partially offset by favorable development in International Auto.
−Removed: In the AmTrust Reinsurance segment, the net adverse prior year loss development was $ 62,384 and $ 97,600 for the three and nine months ended September 30, 2019 , respectively ( 2018 - adverse $ 210,433 and $ 247,326 , respectively).
−Removed: The adverse development in the three and nine months ended September 30, 2019 was primarily driven by Commercial Auto and General Liability in accident years 2014 to 2018, partly offset by favorable development in Workers Compensation in accident years 2016 to 2018.
−Removed: The adverse development for the three and nine months ended September 30, 2019 includes $ 27,587 recognized from application of the $ 40,500 loss corridor cap on AmTrust program business (please see "Note 10.
−Removed: Related Party Transactions" for details).
−Removed: The adverse development for 2018 was largely from Workers Compensation which represented nearly half of the adverse development and was primarily driven by accident years 2014 to 2017, and to a lesser extent, development in European Hospital Liability, Commercial Auto and General Liability lines.
−Removed: Reinsurance recoverable on unpaid losses under the LPT/ADC Agreement with Cavello of $ 549,542 , which includes a deferred gain on retroactive reinsurance of $ 104,542 , was recognized in the nine months ended September 30, 2019 in the reconciliation of our beginning and ending gross and net loss and LAE reserves presented above.
−Removed: The deferred gain on retroactive reinsurance represents the cumulative adverse development under the AmTrust Quota Share covered under the LPT/ADC Agreement at September 30, 2019 .
−Removed: Amortization of the deferred gain will not occur until paid losses have exceeded the minimum retention under the LPT/ADC Agreement.
−Removed: The current estimated payout period for the losses covered by the LPT/ADC Agreement before the minimum retention is exceeded is approximately 5 years .
−Removed: Under the Commutation and Release Agreement with AmTrust on July 1, 2019, Maiden Bermuda transferred cash and invested assets in the amount of $ 312,786 which is the sum of the net ceded reserves in the amount of $ 330,682 with respect to the Commuted Business as of December 31, 2018 less payments in the amount of $ 17,896 made by Maiden Bermuda with respect to the Commuted Business from January 1, 2019 through July 31, 2019.
−Removed: Settlement of the commutation occurred on August 12, 2019 and is reflected in the reconciliation of our beginning and ending gross and net loss and LAE reserves presented above under net paid losses related to prior years.
−Removed: The Other category had net adverse prior year loss development of $ 108 and $ 312 for the three and nine months ended September 30, 2019 , respectively, ( 2018 - adverse $ 1,369 , respectively) due to increased reserves in the run-off of the NGHC Quota Share.
−Removed: Please refer to "Note 14.
−Removed: Subsequent Events" for additional information regarding the commutation of this quota share subsequent to September 30, 2019 .
+Added: The favorable or unfavorable development reflects changes in management's best estimate of the ultimate losses under the relevant reinsurance policies after considerable review of changes in actuarial assessments.
+Added: During the three months ended March 31, 2020 , the Company recognized net favorable prior year loss development of $ 533 ( 2019 - adverse $ 7,258 ).
+Added: In the Diversified Reinsurance segment, net favorable prior year loss development was $ 533 for the three months ended March 31, 2020 ( 2019 - favorable $ 1,096 ) primarily due to favorable reserve development in German Auto Programs.
+Added: The favorable loss development for the same period in 2019 was largely due to facultative reinsurance run-off lines.
+Added: In the AmTrust Reinsurance segment, there was no prior year loss development for the three months ended March 31, 2020 , ( 2019 - adverse $ 8,126 ).
+Added: The adverse development in the three months ended March 31, 2019 was primarily driven by Commercial Auto Liability in accident years 2014 to 2017, partly offset by favorable development in Workers Compensation.
+Added: The Other category incurred net adverse prior year loss development of $ 228 for the three months ended March 31, 2019 due to increased reserves in the run-off of the NGHC Quota Share which was commuted in November 2019.
MAIDEN HOLDINGS, LTD.
4 unchanged sentences
The Founding Shareholders of the Company were Michael Karfunkel, George Karfunkel and Barry Zyskind.
−Removed: Michael Karfunkel passed away on April 27, 2016.
−Removed: Based on each individual's most recent public filing, Leah Karfunkel (wife of Michael Karfunkel) owns or controls approximately 8.1 % of the outstanding shares of the Company and Barry Zyskind (the Company's non-executive chairman) owns or controls approximately 7.6 % of the outstanding shares of the Company.
+Added: Based on each individual's most recent public filing, Leah Karfunkel (wife of the late Michael Karfunkel) owns or controls approximately 8.1 % of the outstanding shares of the Company and Barry Zyskind (the Company's non-executive chairman) owns or controls approximately 7.6 % of the outstanding shares of the Company.
George Karfunkel owns or controls less than 5.0 % of the outstanding shares of the Company.
1 unchanged sentence
Leah Karfunkel, George Karfunkel and Barry Zyskind own or control approximately 53.4 % of the ownership interests of Evergreen Parent LP, the ultimate parent of AmTrust.
−Removed: AmTrust owns 1.5 % of the issued and outstanding shares of National General Holdings Corporation ("NGHC"), and Leah Karfunkel, individually, through a grantor retained annuity trust and through the Michael Karfunkel 2005 Family Trust (which is controlled by Leah Karfunkel) owns 39.4 % of the outstanding common shares of NGHC.
−Removed: Barry Zyskind is a director of NGHC.
The following describes transactions between the Company and AmTrust:
AmTrust Quota Share
−Removed: Effective July 1, 2007, the Company and AmTrust entered into a master agreement, as amended ("Master Agreement"), by which they caused Maiden Bermuda, then a wholly owned subsidiary of the Company, and AmTrust's Bermuda reinsurance subsidiary, AII, to enter into the AmTrust Quota Share by which AII retrocedes to Maiden Bermuda an amount equal to 40 % of the premium written by subsidiaries of AmTrust, net of the cost of unaffiliated inuring reinsurance and 40 % of losses.
−Removed: The Master Agreement further provided that AII receives a ceding commission of 31 % of ceded written premiums.
−Removed: On June 11, 2008, Maiden Bermuda and AII amended the AmTrust Quota Share to add Retail Commercial Package Business to the Covered Business.
+Added: Effective July 1, 2007, the Company and AmTrust entered into a master agreement, as amended ("Master Agreement"), by which they caused Maiden Reinsurance, and AmTrust's Bermuda reinsurance subsidiary, AII, to enter into the AmTrust Quota Share by which AII retroceded to Maiden Reinsurance an amount equal to 40 % of the premium written by subsidiaries of AmTrust, net of the cost of unaffiliated inuring reinsurance and 40 % of losses.
+Added: The Master Agreement further provided that AII receive a ceding commission of 31 % of ceded written premiums.
+Added: On June 11, 2008, Maiden Reinsurance and AII amended the AmTrust Quota Share to add Retail Commercial Package Business to the Covered Business.
AII receives a ceding commission of 34.375 % on Retail Commercial Package Business.
On July 1, 2016, the agreement was renewed through June 30, 2019.
−Removed: Effective July 1, 2018, the amount AEL ceded to the Company was reduced to 20 % .
−Removed: Additionally, for the Specialty Program portion of Covered Business only, AII will be responsible for ultimate net loss otherwise recoverable from Maiden Bermuda to the extent that the loss ratio to Maiden Bermuda, which shall be determined on an inception to date basis from July 1, 2007 through the date of calculation, is between 81.5 % and 95 % ("Loss Corridor").
−Removed: Above and below the Loss Corridor, Maiden Bermuda continued to reinsure losses at its proportional 40 % share of the AmTrust Quota Share.
−Removed: Effective July 31, 2019, the Loss Corridor was amended such that the maximum amount covered is $ 40,500 , the amount calculated by Maiden Bermuda for the Loss Corridor coverage as of March 31, 2019 .
+Added: Effective July 1, 2018, the amount AEL ceded to Maiden Reinsurance was reduced to 20 % .
+Added: Effective July 1, 2013, for the Specialty Program portion of Covered Business only, AII was responsible for ultimate net loss otherwise recoverable from Maiden Reinsurance to the extent that the loss ratio to Maiden Reinsurance, which shall be determined on an inception to date basis from July 1, 2007 through the date of calculation, is between 81.5 % and 95 % ("Loss Corridor").
+Added: Above and below the Loss Corridor, Maiden Reinsurance continued to reinsure losses at its proportional 40 % share of the AmTrust Quota Share.
+Added: Effective July 31, 2019, the Loss Corridor was amended such that the maximum amount covered is $ 40,500 , the amount calculated by Maiden Reinsurance for the Loss Corridor coverage as of March 31, 2019 .
Any development above this maximum amount will be subject to the coverage of the LPT/ADC Agreement.
1 unchanged sentence
"Basis of Presentation" for additional information .
−Removed: Effective January 1, 2019, Maiden Bermuda and AmTrust entered into the Partial Termination Amendment which amended the AmTrust Quota Share.
+Added: Effective January 1, 2019, Maiden Reinsurance and AII entered into the Partial Termination Amendment which amended the AmTrust Quota Share.
The Partial Termination Amendment provided for the cut-off of the ongoing and unearned premium of AmTrust’s Small Commercial Business, comprising workers’ compensation, general liability, umbrella liability, professional liability (including cyber liability) insurance coverages, and U.S.
Specialty Risk and Extended Warranty ("Terminated Business") as of December 31, 2018 .
−Removed: Under the Partial Termination Amendment, the ceding commission payable by Maiden Bermuda for its remaining in-force business immediately prior to January 1, 2019 increased by five percentage points with respect to in-force remaining business (excluding Terminated Business) and related unearned premium as of January 1, 2019.
−Removed: Subsequently, on January 30, 2019, Maiden Bermuda and AII agreed to terminate the remaining business subject to the AmTrust Quota Share on a run-off basis effective as of January 1, 2019.
−Removed: The Partial Termination Amendment resulted in Maiden Bermuda returning approximately $ 647,980 in unearned premium to AII, or approximately $ 436,760 net of applicable ceding commission and brokerage as calculated during the second quarter of 2019.
−Removed: During January 2019, as part of this amendment, the Company transferred cash and investments of $ 480,000 to AII based on provisional estimates.
−Removed: The excess of estimated unearned premium, net of applicable ceding commission and brokerage over the actual amount of approximately $ 43,240 was returned by AII to Maiden Bermuda during the second quarter of 2019.
−Removed: Effective as of July 31, 2019, Maiden Bermuda and AII entered into a Commutation and Release Agreement which provided for AII to assume all reserves ceded by AII to Maiden Bermuda with respect to its proportional 40 % share of the ultimate net loss under the AmTrust Quota Share related to the Commuted Business.
−Removed: See further details in Note 1 "Basis of Presentation".
+Added: Under the Partial Termination Amendment, the ceding commission payable by Maiden Reinsurance for its remaining in-force business immediately prior to January 1, 2019 increased by five percentage points with respect to in-force remaining business (excluding Terminated Business) and related unearned premium as of January 1, 2019.
+Added: The Partial Termination Amendment resulted in Maiden Reinsurance returning $ 647,980 in unearned premium to AII, or $ 436,760 net of applicable ceding commission and brokerage as calculated during the second quarter of 2019.
+Added: Subsequently, on January 30, 2019, Maiden Reinsurance and AII agreed to terminate the remaining business subject to the AmTrust Quota Share on a run-off basis effective as of January 1, 2019.
+Added: Effective July 31, 2019, Maiden Reinsurance and AII entered into a Commutation and Release Agreement which provided for AII to assume all reserves ceded by AII to Maiden Reinsurance with respect to its proportional 40 % share of the ultimate net loss under the AmTrust Quota Share related to the Commuted Business.
+Added: Please refer to Note 1 "Basis of Presentation" f or additional information.
+Added: AII and Maiden Reinsurance also agreed that, as of July 31, 2019, the AmTrust Quota Share shall be deemed amended as applicable so that the Commuted Business is no longer included as part of the Covered Business under the AmTrust Quota Share.
+Added: On January 30, 2019, in connection with the termination of the reinsurance agreement described above, the Company and AmTrust entered into a second amendment to the Master Agreement between the parties, originally entered into on July 3, 2007, to remove the provisions requiring AmTrust to reinsure business with the Company.
+Added: European Hospital Liability Quota Share
+Added: Effective April 1, 2011, Maiden Reinsurance entered into the European Hospital Liability Quota Share with AEL and AIU DAC, both wholly owned subsidiaries of AmTrust.
+Added: Pursuant to the terms of the European Hospital Liability Quota Share, Maiden Reinsurance assumed 40 % of the premiums and losses related to policies classified as European Hospital Liability, including associated liability coverages and policies covering physician defense costs, written or renewed on or after April 1, 2011.
+Added: The European Hospital Liability Quota Share also covers policies written or renewed on or before March 31, 2011, but only with respect to losses that occur, accrue or arise on or after April 1, 2011.
+Added: The maximum limit of liability attaching shall be € 5,000 ( € 10,000 effective January 1, 2012) or currency equivalent (on a 100 % basis) per original claim for any one original policy.
+Added: Maiden Reinsurance paid a ceding commission of 5 % on contracts assumed under the European Hospital Liability Quota Share.
MAIDEN HOLDINGS, LTD.
3 unchanged sentences
Related Party Transactions (continued)
−Removed: European Hospital Liability Quota Share
−Removed: Effective April 1, 2011, Maiden Bermuda entered into a quota share reinsurance contract with AEL and AIU DAC, both wholly owned subsidiaries of AmTrust.
−Removed: Pursuant to the terms of the contract, Maiden Bermuda assumed 40 % of the premiums and losses related to policies classified as European Hospital Liability, including associated liability coverages and policies covering physician defense costs, written or renewed on or after April 1, 2011.
−Removed: The contract also covers policies written or renewed on or before March 31, 2011, but only with respect to losses that occur, accrue or arise on or after April 1, 2011.
−Removed: The maximum limit of liability attaching shall be € 5,000 ( € 10,000 effective January 1, 2012) or currency equivalent (on a 100 % basis) per original claim for any one original policy.
−Removed: Maiden Bermuda paid a ceding commission of 5 % .
−Removed: Effective July 1, 2016, the contract was amended such that Maiden Bermuda assumes from AEL 32.5 % of the premiums and losses of all policies written or renewed on or after July 1, 2016 until June 30, 2017 and 20 % of all policies written or renewed on or after July 1, 2017.
−Removed: Subsequently, on January 30, 2019, Maiden Bermuda, AEL and AIU DAC agreed to terminate the European Hospital Liability Quota Share on a run-off basis effective as of January 1, 2019.
−Removed: On January 30, 2019, in connection with the termination of the reinsurance agreements described above, the Company and AmTrust entered into a second amendment to the Master Agreement between the parties, originally entered into on July 3, 2007, to remove the provisions requiring AmTrust to reinsure business with the Company.
−Removed: The table below shows the effect of both of these quota share arrangements with AmTrust on the Company's Condensed Consolidated Results of Operations for the three and nine months ended September 30, 2019 and 2018 :
−Removed: For the Three Months Ended September 30,
−Removed: For the Nine Months Ended September 30,
+Added: Effective July 1, 2016, the European Hospital Liability Quota Share was amended such that Maiden Reinsurance assumes from AEL 32.5 % of the premiums and losses of all policies written or renewed on or after July 1, 2016 until June 30, 2017 and 20 % of all policies written or renewed on or after July 1, 2017.
+Added: Subsequently, on January 30, 2019, Maiden Reinsurance, AEL and AIU DAC agreed to terminate the European Hospital Liability Quota Share on a run-off basis effective as of January 1, 2019.
+Added: The table below shows the effect of both of these quota share arrangements with AmTrust on the Company's unaudited Condensed Consolidated Income Statement for the three months ended March 31, 2020 and 2019 , respectively:
+Added: For the Three Months Ended March 31,
Gross and net premiums written
3 unchanged sentences
Collateral provided to AmTrust
−Removed: a) AmTrust Quota Share Reinsurance Agreement
+Added: a) AmTrust Quota Share
To provide AmTrust's U.S.
−Removed: insurance subsidiaries with credit for reinsurance on their statutory financial statements, AII, as the direct reinsurer of AmTrust's insurance subsidiaries, has established trust accounts ("Trust Accounts") for their benefit.
−Removed: Maiden Bermuda has agreed to provide appropriate collateral to secure its proportional share under the AmTrust Quota Share of AII's obligations to the AmTrust subsidiaries to whom AII is required to provide collateral.
−Removed: This collateral may be in the form of (a) assets loaned by Maiden Bermuda to AII for deposit into the Trust Accounts, pursuant to a loan agreement between those parties, (b) assets transferred by Maiden Bermuda for deposit into the Trust Accounts, (c) a letter of credit obtained by Maiden Bermuda and delivered to an AmTrust subsidiary on AII's behalf, or (d) premiums withheld by an AmTrust subsidiary at Maiden Bermuda's request in lieu of remitting such premiums to AII.
−Removed: Maiden Bermuda may provide any or a combination of these forms of collateral, provided that the aggregate value thereof equals Maiden Bermuda's proportionate share of its obligations under the AmTrust Quota Share.
−Removed: Maiden Bermuda satisfied its collateral requirements under the AmTrust Quota Share with AII as follows:
−Removed: by lending funds in the amount of $ 167,975 at September 30, 2019 and December 31, 2018 pursuant to a loan agreement entered into between those parties.
+Added: insurance subsidiaries with credit for reinsurance on their statutory financial statements, AII, as the direct reinsurer of AmTrust's insurance subsidiaries, established trust accounts ("Trust Accounts") for their benefit.
+Added: Maiden Reinsurance has agreed to provide appropriate collateral to secure its proportional share under the AmTrust Quota Share of AII's obligations to the AmTrust subsidiaries to whom AII is required to provide collateral.
+Added: This collateral may be in the form of (a) assets loaned by Maiden Reinsurance to AII for deposit into the Trust Accounts, pursuant to a loan agreement between those parties, (b) assets transferred by Maiden Reinsurance for deposit into the Trust Accounts, or (c) a letter of credit obtained by Maiden Reinsurance and delivered to an AmTrust subsidiary on AII's behalf.
+Added: Maiden Reinsurance may provide any or a combination of these forms of collateral, provided that the aggregate value thereof equals Maiden Reinsurance's proportionate share of its obligations under the AmTrust Quota Share.
+Added: Maiden Reinsurance satisfied its collateral requirements under the AmTrust Quota Share with AII as follows:
+Added: by lending funds in the amount of $ 167,975 at March 31, 2020 and December 31, 2019 pursuant to a loan agreement entered into between those parties.
Advances under the loan are secured by promissory notes.
3 unchanged sentences
(c) Investments" for the total amount of interest earned from this loan.
−Removed: The interest income on the loan was approximately $ 1,777 and $ 5,441 for the three and nine months ended September 30, 2019 , respectively, ( 2018 - $ 1,658 and $ 4,651 , respectively) and the effective yield was 4.2 % and 4.3 % for the same respective periods ( 2018 - 3.9 % and 3.7 % , respectively).
−Removed: On January 30, 2019, in connection with the termination of the reinsurance agreements described above, the Company and AmTrust entered into an amendment to the Loan Agreement between Maiden Bermuda, AmTrust and AII, originally entered into on November 16, 2007.
−Removed: The Amendment provides for the extension of the maturity date to January 1, 2025 and acknowledges that due to the termination of the AmTrust Quota Share, no further loans or advances may be made pursuant to the Loan Agreement;
+Added: The interest income on the loan was $ 1,365 for the three months ended March 31, 2020 ( 2019 - $ 1,822 ) and the effective yield was 3.3 % for the same period ( 2019 - 4.3 % ).
+Added: On January 30, 2019, in connection with the termination of the reinsurance agreements described above, the Company and AmTrust entered into an amendment to the Loan Agreement between Maiden Reinsurance, AmTrust and AII, originally entered into on November 16, 2007, extending the maturity date to January 1, 2025 and acknowledges that due to the termination of the AmTrust Quota Share, no further loans or advances may be made pursuant to the Loan Agreement;
effective December 1, 2008, the Company entered into a Reinsurer Trust Assets Collateral agreement to provide to AII sufficient collateral to secure its proportional share of AII's obligations to the U.S.
AmTrust subsidiaries.
−Removed: The amount of the collateral at September 30, 2019 was approximately $ 1,354,283 (December 31, 2018 - $ 3,650,418 ) and the accrued interest was $ 7,645 (December 31, 2018 - $ 23,283 ).
+Added: The amount of the collateral at March 31, 2020 was $ 998,535 (December 31, 2019 - $ 1,155,955 ) and the accrued interest was $ 4,897 (December 31, 2019 - $ 7,366 ).
Please refer to "Note 4.
1 unchanged sentence
on January 11, 2019, a portion of the existing trust accounts used for collateral on the AmTrust Quota Share were converted to a funds withheld arrangement.
−Removed: The Company transferred cash and investments of $ 575,000 to AmTrust as a funds withheld receivable which bears an interest rate of 3.5 % , subject to annual adjustment.
−Removed: At September 30, 2019 , the balance of funds withheld was $ 575,000 and the accrued interest was $ 5,073 .
−Removed: The interest income on the funds withheld receivable was approximately $ 5,073 and $ 14,500 for the three and nine months ended September 30, 2019 , respectively.
+Added: The Company transferred cash and investments of $ 575,000 to AmTrust as a funds withheld receivable which initially had an annual interest rate of 3.5 % , subject to annual adjustment.
+Added: The annual interest rate was adjusted to 2.65 % for the three months ended March 31, 2020 .
+Added: At March 31, 2020 , the balance of funds withheld was $ 575,000 (December 31, 2019 - $ 575,000 ) and the accrued interest was $ 8,873 (December 31, 2019 - $ 5,073 ).
+Added: The interest income on the funds withheld receivable was $ 3,800 for the three months ended March 31, 2020 ( 2019 - $ 4,426 ).
+Added: Pursuant to the terms of the LPT/ADC Agreement, Maiden Reinsurance, Cavello and AmTrust and certain of its affiliated companies entered into a Master Collateral Agreement (“MCA”) to define and enable the operation of collateral provided under the AmTrust Quota Share.
+Added: Under the MCA, Cavello provided letters of credit on behalf of Maiden Reinsurance to AmTrust in an amount representing Cavello’s obligations under the LPT/ADC Agreement.
+Added: Because these letters of credit replaced other collateral previously provided directly by Maiden Reinsurance to AmTrust, the MCA coordinates the collateral protection that will be provided to AmTrust to ensure that no gaps in collateral funding occur by operation of the LPT/ADC Agreement and related MCA.
+Added: As a result of entering into both the LPT/ADC Agreement and the MCA, certain post-termination endorsements (“PTE's”) to the AmTrust Quota Share between AII and Maiden Reinsurance were required.
+Added: Effective July 31, 2019, the PTE's:
+Added: i) enable the operation of both the LPT/ADC Agreement and MCA by making provision for certain forms of collateral, including letters of credit provided by Cavello on Maiden Reinsurance’s behalf, and further defines the permitted use and return of collateral;
+Added: and ii) increase the required funding percentage for Maiden Reinsurance under the collateral arrangements between the parties to 105 % of its obligations, subject to a minimum excess funding requirement of $ 54,000 , as may be mutually amended by the parties from time to time.
+Added: Under certain defined conditions, Maiden Reinsurance may be required to increase this funding percentage to 110 % .
MAIDEN HOLDINGS, LTD.
3 unchanged sentences
Related Party Transactions (continued)
−Removed: Pursuant to the terms of the LPT/ADC Agreement, Maiden Bermuda, Cavello and AmTrust and certain of its affiliated companies entered into a Master Collateral Agreement (“MCA”) to define and enable the operation of collateral provided under the AmTrust Quota Share.
−Removed: Under the MCA, Cavello, on behalf of Maiden Bermuda, provided letters of credit to AmTrust in an amount representing Cavello’s obligations under the LPT/ADC Agreement.
−Removed: As these letters of credit replaced other collateral previously provided directly by Maiden Bermuda to AmTrust, the MCA coordinates the collateral protection that will be provided to AmTrust to ensure that no gaps in collateral funding occur by operation of the LPT/ADC Agreement and related MCA.
−Removed: As a result of entering into both the LPT/ADC Agreement and the MCA, certain post-termination endorsements (“PTE's”) to the AmTrust Quota Share between AII and Maiden Bermuda were required.
−Removed: Effective July 31, 2019, the PTE's:
−Removed: i) enable the operation of both the LPT/ADC Agreement and MCA by making provision for certain forms of collateral, including letters of credit provided by Cavello on Maiden Bermuda’s behalf, and further defines the permitted use and return of collateral;
−Removed: ii) increase the required funding percentage for Maiden Bermuda under the collateral arrangements between the parties to 105 % of its obligations, subject to a minimum excess funding requirement of $ 54,000 , as may be mutually amended by the parties from time to time.
−Removed: Under certain defined conditions, Maiden Bermuda may be required to increase this funding percentage to 110 % .
+Added: Effective March 16, 2020, Maiden Reinsurance discontinued as a Bermuda company and completed its re-domestication to the State of Vermont.
+Added: Bermuda is a Solvency II equivalent jurisdiction and the State of Vermont is not such a jurisdiction therefore, the collateral provided under the respective agreements with AmTrust subsidiaries was strengthened to reflect the impact of the re-domestication concurrent with the date of Maiden Reinsurance’s re-domestication to Vermont.
+Added: Maiden Reinsurance and AmTrust agreed to:
+Added: 1) amend the AmTrust Quota Share pursuant to Post Termination Endorsement No.
+Added: 2 effective March 16, 2020;
+Added: and 2) amend the European Hospital Liability Quota Share pursuant to Post Termination Endorsement No.
+Added: 1 effective March 16, 2020.
+Added: Pursuant to the terms of Post Termination Endorsement No.
+Added: 2 to the AmTrust Quota Share, Maiden Reinsurance will strengthen the collateral protection provided by Maiden Reinsurance to AII by increasing the required funding percentage for Maiden Reinsurance under the collateral arrangements between the parties to 110 % of its obligations, subject to a minimum excess funding requirement of $ 54,000 , as may be mutually amended by the parties from time to time.
+Added: Post Termination Endorsement No.
+Added: 2 also sets forth conditions by which the funding percentage will be reduced and the sequence of how collateral will be utilized as obligations as defined under the AmTrust Quota Share are satisfied.
+Added: Pursuant to the terms of Post Termination Endorsement No.
+Added: 1 to the European Hospital Liability Quota Share, Maiden Reinsurance will strengthen the collateral protection provided by Maiden Reinsurance to AEL and AIU DAC by increasing the required funding percentage for Maiden Reinsurance under the collateral arrangements between the parties to the greater of 120 % of the Exposure (as defined therein) and the amount of security required to offset the increase in the Solvency Capital Requirement (“SCR”) that results from the changes in the SCR which arise out of Maiden Reinsurance's re-domestication as compared to the SCR calculation if Maiden Reinsurance had remained domesticated in a Solvency II equivalent jurisdiction with a solvency ratio above 100 % and provided collateral equivalent to 100 % of the Exposure.
b) European Hospital Liability Quota Share
−Removed: Collateral has been provided to both AEL and AIU DAC under the European Hospital Liability Quota Share agreement:
−Removed: i) for AEL, the amount of the collateral in reinsurance trust accounts at September 30, 2019 was approximately $ 240,386 (December 31, 2018 - $ 249,948 ) and the accrued interest was $ 1,305 (December 31, 2018 - $ 1,976 ).
−Removed: Please refer to "Note 4.
−Removed: (e) Investments" for additional information;
−Removed: ii) in January 2019, Maiden Bermuda transferred cash of € 45,113 ( $ 51,244 ) to AIU DAC as a funds withheld receivable.
−Removed: AIU DAC pays Maiden a fixed annual interest rate of 0.50 % , on the average daily Funds Withheld balance, commencing on January 24, 2019, subject to annual adjustment.
−Removed: At September 30, 2019 , the balance of funds withheld was $ 55,701 and the accrued interest was $ 192 .
−Removed: The interest income on the funds withheld receivable was approximately $ 71 and $ 196 for the three and nine months ended September 30, 2019 , respectively.
+Added: Collateral has been provided to both AEL and AIU DAC under the European Hospital Liability Quota Share.
+Added: For AEL, the amount of the collateral held in reinsurance trust accounts at March 31, 2020 was $ 200,150 (December 31, 2019 - $ 253,631 ) and the accrued interest was $ 1,696 (December 31, 2019 - $ 1,821 ).
+Added: For AIU DAC, the Company utilizes funds withheld to satisfy its collateral requirements.
+Added: At March 31, 2020 , the amount of funds withheld was $ 74,516 ( December 31, 2019 - $ 57,305 ) and the accrued interest was $ 71 ( December 31, 2019 - $ 269 ).
+Added: AIU DAC pays Maiden Reinsurance a fixed annual interest rate of 0.5 % , on the average daily funds withheld balance which is subject to annual adjustment.The interest income on the funds withheld receivable was $ 71 for the three months ended March 31, 2020 ( 2019 - $ 53 ), respectively.
Brokerage Agreement
4 unchanged sentences
The brokerage agreement was terminated as of March 15, 2019.
−Removed: Maiden Bermuda recorded approximately $ 930 and $ 4,305 of reinsurance brokerage expense for the three and nine months ended September 30, 2019 , respectively ( 2018 - $ 6,145 and $ 18,408 , respectively) and deferred reinsurance brokerage of $ 2,835 at September 30, 2019 (December 31, 2018 - $ 14,199 ) as a result of this agreement.
+Added: Maiden Reinsurance recorded $ 234 of reinsurance brokerage expense for the three months ended March 31, 2020 ( 2019 - $ 1,977 ) and deferred reinsurance brokerage of $ 2,139 at March 31, 2020 (December 31, 2019 - $ 2,372 ) as a result of this agreement.
Asset Management Agreement
1 unchanged sentence
Effective January 1, 2018, AIIM provides investment management services for a quarterly fee of 0.02125 % of the average value of the account.
−Removed: Prior to that date, the fee was payable at a rate of 0.0375 % .
The agreement may be terminated upon 30 days written notice by either party.
−Removed: The Company recorded approximately $ 618 and $ 2,071 of investment management fees for the three and nine months ended September 30, 2019 , respectively, ( 2018 - $ 1,055 and $ 3,137 , respectively) under this agreement.
−Removed: NGHC Quota Share
−Removed: Maiden Bermuda, effective March 1, 2010, had a 50 % participation in the NGHC Quota Share, by which it received 25 % of net premiums of the personal lines automobile business and assumed 25 % of the related net losses.
−Removed: On August 1, 2013, the Company received notice from NGHC of the termination of the NGHC Quota Share effective on that date.
−Removed: The Company and NGHC mutually agreed that the termination is on a run-off basis.
−Removed: Please refer to "Note 14.
−Removed: Subsequent Events" for additional information regarding the commutation of this quota share subsequent to September 30, 2019 .
+Added: The Company recorded $ 400 of investment management fees for the three months ended March 31, 2020 ( 2019 - $ 775 ) under this agreement.
Insurance Management Services Agreement
1 unchanged sentence
("Risk Services"), an affiliate of AmTrust.
−Removed: Pursuant to the agreement, Risk Services agreed to provide insurance management services to the Company including regulatory compliance services in connection with the re-domestication, licensing and operation of Maiden Bermuda in the State of Vermont.
+Added: Pursuant to the agreement, Risk Services agreed to provide insurance management services to the Company including regulatory compliance services in connection with the re-domestication, licensing and operation of Maiden Reinsurance in the State of Vermont.
The initial term of the agreement is three years and will automatically renew for an additional three years until either party gives written notice of its intention to terminate this agreement at least three months prior to the commencement of the next applicable period.
−Removed: The fee for this agreement is an initial $ 100 retainer for re-domestication services and $ 100 annually and reimbursement for reasonable out-of-pocket expenses incurred by Risk Services pursuant to the terms of the agreement.
−Removed: The Company recorded approximately $ 100 of fees for the three and nine months ended September 30, 2019 .
+Added: The fee for this agreement was an initial $ 100 retainer for re-domestication services and $ 100 annually and reimbursement for reasonable out-of-pocket expenses incurred by Risk Services pursuant to the terms of the agreement.
+Added: The Company recorded $ 25 of fees for the three months ended March 31, 2020 .
MAIDEN HOLDINGS, LTD.
3 unchanged sentences
Commitments and Contingencies
−Removed: There are no material changes from the commitments, contingencies and concentrations previously disclosed in the Company’s Form 10-K for the year ended December 31, 2018 , other than disclosures associated with the adoption of FASB Topic 842, Leases and the impact of the LPT/ADC Agreement with Enstar as outlined below.
−Removed: Please see “ Note 2.
−Removed: Significant Accounting Policies ” for additional information related to the adoption of FASB Topic 842, Leases.
+Added: There are no material changes from the commitments, contingencies and concentrations previously disclosed in the Company’s Form 10-K for the year ended December 31, 2019 .
Concentrations of Credit Risk
−Removed: At September 30, 2019 and December 31, 2018 , the Company’s assets where significant concentrations of credit risk may exist include investments, cash and cash equivalents, loan to related party, reinsurance balances receivable, reinsurance recoverable on unpaid losses and funds withheld receivable.
+Added: At March 31, 2020 and December 31, 2019 , the Company’s assets where significant concentrations of credit risk may exist include investments, cash and cash equivalents, loan to related party, reinsurance balances receivable, reinsurance recoverable on unpaid losses and funds withheld receivable.
Please refer to " Note 8.
−Removed: Reinsurance " for additional information regarding the Company's credit risk exposure on its reinsurance counterparties including the impact of the LPT/ADC Agreement entered into on July 31, 2019.
−Removed: The Company manages concentration of credit risk in the investment portfolio through issuer and sector exposure limitations.
+Added: Reinsurance " for additional information regarding the Company's credit risk exposure on its reinsurance counterparties including the impact of the LPT/ADC Agreement effective January 1, 2019.
+Added: The Company requires its reinsurers to have adequate financial strength.
+Added: The Company evaluates the financial condition of its reinsurers and monitors its concentration of credit risk on an ongoing basis.
+Added: Provisions are made for amounts considered potentially uncollectible.
+Added: Letters of credit are provided by its reinsurers for material amounts recoverable as discussed further in " Note 8 — Reinsurance ".
+Added: The Company manages concentration of credit risk in its investment portfolio through issuer and sector exposure limitations.
The Company believes it bears minimal credit risk in its cash on deposit.
−Removed: The Company also monitors the credit risk related to the loan to related party and its reinsurance balances receivable, within which the largest balance is due from AmTrust.
−Removed: AmTrust has a credit rating of A- from A.M.
−Removed: Best at September 30, 2019 .
−Removed: To mitigate credit risk, we generally have a contractual right of offset thereby allowing us to settle claims net of any premiums or loan receivable.
−Removed: The Company believes these balances as at September 30, 2019 will be fully collectible.
+Added: The Company also monitors the credit risk related to the loan to related party and funds withheld receivable, within which the largest balance is due from AmTrust.
+Added: AmTrust has a financial strength/credit rating of A- from A.M.
+Added: Best at March 31, 2020 .
+Added: To mitigate credit risk, the Company generally has a contractual right of offset thereby allowing claims to be settled net of any premiums or loan receivable.
+Added: The Company believes these balances as at March 31, 2020 will be fully collectible.
Operating Lease Commitments
The Company leases office spaces, housing, office equipment and company vehicles under various operating leases expiring in various years through 2022 .
−Removed: The Company did not enter into any new lease arrangements during the three and nine months ended September 30, 2019 .
+Added: The Company did not enter into any new lease arrangements during the three months ended March 31, 2020 .
The Company's leases are all currently classified as operating leases and none of them have non-lease components.
5 unchanged sentences
The Company's weighted-average remaining lease term is 2.4 years.
−Removed: The Company's future lease obligations as at September 30, 2019 of approximately $ 2,610 was calculated based on the present value of future annual rental commitments excluding taxes, insurance and other operating costs for non-cancellable operating leases discounted using the Company's secured incremental borrowing rate.
−Removed: This amount has been recognized on the Company's Condensed Consolidated Balance Sheets as a lease liability of $ 2,610 within accrued expenses and other liabilities with an equivalent amount for the right-of-use asset presented as part of other assets.
−Removed: Under the guidance, the Company continues to recognize the related leasing expense on a straight-line basis over the lease term in the Company's Condensed Consolidated Statements of Income.
−Removed: The Company's total lease expense for the three and nine months ended September 30, 2019 was $ 486 and $ 1,296 , respectively ( 2018 - $ 571 and $ 1,702 , respectively) which was recognized within net income consistent with the accounting treatment in prior periods under Topic 840 .
−Removed: The operating cash outflows from operating leases included in the measurement of the lease liability during the three and nine months ended September 30, 2019 was $ 340 and $ 1,021 , respectively.
−Removed: At September 30, 2019 , the scheduled maturity of the Company's operating lease liabilities are expected to be as follows:
−Removed: September 30, 2019
−Removed: Remainder of 2019
+Added: At March 31, 2020 , the Company's future lease obligations of $ 2,060 ( December 31, 2019 - $ 2,342 ) was calculated based on the present value of future annual rental commitments excluding taxes, insurance and other operating costs for non-cancellable operating leases discounted using its secured incremental borrowing rate.
+Added: This amount has been recognized on the Condensed Consolidated Balance Sheets as a lease liability of $ 2,060 within accrued expenses and other liabilities with an equivalent amount for the right-of-use asset presented as part of other assets.
+Added: Under Topic 842, Leases , the Company continues to recognize the related leasing expense on a straight-line basis over the lease term in the unaudited Condensed Consolidated Statements of Income.
+Added: The Company's total lease expense for the three months ended March 31, 2020 was $ 410 ( 2019 - $ 421 ) which was recognized within net income consistent with the accounting treatment in prior periods under Topic 840 .
+Added: The operating cash outflows from operating leases included in the measurement of the lease liability during the three months ended March 31, 2020 was $ 340 ( 2019 - $ 341 ).
+Added: The scheduled maturity of the Company's operating lease liabilities are expected to be as follows:
+Added: March 31, 2020
Discount for present value
Total discounted operating lease liabilities
−Removed: MAIDEN HOLDINGS, LTD.
−Removed: NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
−Removed: (in thousands of U.S.
−Removed: dollars, except share and per share data)
−Removed: Commitments and Contingencies (continued)
−Removed: At December 31, 2018 , the Company's future minimum lease payments under non-cancellable operating leases were expected to be as follows:
−Removed: December 31, 2018
Legal Proceedings
3 unchanged sentences
Based on the Company's opinion, the eventual outcome of these legal proceedings is not expected to have a material adverse effect on its financial condition or results of operations.
+Added: MAIDEN HOLDINGS, LTD.
+Added: NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
+Added: (in thousands of U.S.
+Added: dollars, except share and per share data)
+Added: Commitments and Contingencies (continued)
In April 2009, the Company learned that Bentzion S.
−Removed: Turin, the former Chief Operating Officer, General Counsel and Secretary of Maiden Holdings and Maiden Bermuda, sent a letter to the U.S.
+Added: Turin, the former Chief Operating Officer, General Counsel and Secretary of Maiden Holdings and Maiden Reinsurance, sent a letter to the U.S.
Department of Labor claiming that his employment with the Company was terminated in retaliation for corporate whistle-blowing in violation of the whistle-blower protection provisions of the Sarbanes-Oxley Act of 2002.
Turin alleged that he was terminated for raising concerns regarding corporate governance with respect to the negotiation of the terms of the Trust Preferred Securities Offering.
−Removed: He seeks reinstatement as Chief Operating Officer, General Counsel and Secretary of Maiden Holdings and Maiden Bermuda, back pay and legal fees incurred.
+Added: He seeks reinstatement as Chief Operating Officer, General Counsel and Secretary of Maiden Holdings and Maiden Reinsurance, back pay and legal fees incurred.
On December 31, 2009, the U.S.
16 unchanged sentences
Schmitt, and John M.
−Removed: Marshaleck in the United States District Court for the District of New Jersey on February 11, 2019, alleging that Defendants violated Section 10(b) of the Exchange Act and Rule 10b-5 (and Section 20(a) for control person liability) by making misrepresentations about the Company and its business, including the Company’s risk management and underwriting policies and practices.
−Removed: Plaintiffs further claim that these misrepresentations inflated the price of Maiden Holdings' common stock, and that when the truth about the misrepresentations was revealed, the Company’s stock price fell, causing Plaintiffs to incur losses.
−Removed: Maiden has not yet been served with the complaint, but believe the claims are without merit and intends to vigorously defend itself.
−Removed: There exist and the Company expects additional lawsuits to be filed against the Company, its subsidiaries and its respective officers due to the diminution in value of our securities as a result of our operating results and financial condition.
−Removed: It is currently uncertain as to the effect of such litigation on our business, operating results and financial conditions.
−Removed: MAIDEN HOLDINGS, LTD.
−Removed: NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
−Removed: (in thousands of U.S.
−Removed: dollars, except share and per share data)
+Added: Marshaleck in the United States District Court for the District of New Jersey on February 11, 2019.
+Added: On February 19, 2020, the Court appointed lead plaintiffs, and on May 1, 2020, lead plaintiffs filed an amended class action complaint (the “Amended Complaint”).The Amended Complaint asserts violations of Section 10(b) of the Exchange Act and Rule 10b-5 (and Section 20(a) for control person liability) arising in large part from allegations that Maiden failed to take adequate loss reserves in connection with reinsurance provided to AmTrust.
+Added: Plaintiffs further claim that certain of Maiden Holdings’ representations concerning its business, underwriting and financial statements were rendered false by the allegedly inadequate loss reserves, that these misrepresentations inflated the price of Maiden Holdings' common stock, and that when the truth about the misrepresentations was revealed, the Company’s stock price fell, causing Plaintiffs to incur losses.
+Added: The Company believes the claims are without merit and intends to vigorously defend itself.
+Added: It is possible that additional lawsuits will be filed against the Company, its subsidiaries and its respective officers due to the diminution in value of our securities as a result of our operating results and financial condition.
+Added: It is currently uncertain as to the effect of such litigation on our business, operating results and financial condition.
Earnings per Common Share
The following is a summary of the elements used in calculating basic and diluted earnings per common share:
−Removed: For the Three Months Ended September 30,
−Removed: Net loss from continuing operations
−Removed: Net income from continuing operations attributable to noncontrolling interests
−Removed: Net loss attributable to Maiden from continuing operations
−Removed: Dividends on preference shares – Series A, C and D
−Removed: Amount allocated to participating common shareholders (1)
−Removed: Loss attributable to Maiden common shareholders, before discontinued operations
−Removed: Loss from discontinued operations, net of income tax expense
−Removed: Net loss allocated to Maiden common shareholders
−Removed: Weighted average number of common shares – basic and diluted (2)
−Removed: Basic and diluted loss from continuing operations per share attributable to Maiden common shareholders
−Removed: Basic and diluted loss from discontinued operations per share attributable to Maiden common shareholders
−Removed: Basic and diluted loss per share attributable to Maiden common shareholders:
−Removed: For the Nine Months Ended September 30,
−Removed: Net loss from continuing operations
−Removed: Net income from continuing operations attributable to noncontrolling interests
−Removed: Net loss attributable to Maiden from continuing operations
−Removed: Dividends on preference shares – Series A, C and D
+Added: For the Three Months Ended March 31,
+Added: Net income (loss) from continuing operations
Amount allocated to participating common shareholders (1)
−Removed: Loss attributable to Maiden common shareholders, before discontinued operations
+Added: Income (loss) attributable to common shareholders, before discontinued operations
Loss from discontinued operations, net of income tax expense
−Removed: Net loss allocated to Maiden common shareholders
+Added: Net income (loss) allocated to common shareholders
Weighted average number of common shares – basic and diluted (2)
−Removed: Basic and diluted loss from continuing operations per share attributable to Maiden common shareholders
−Removed: Basic and diluted loss from discontinued operations per share attributable to Maiden common shareholders
−Removed: Basic and diluted loss per share attributable to Maiden common shareholders:
−Removed: This represents earnings (dividends paid) allocated to the holders of non-vested restricted shares issued to the Company's employees under the Amended and Restated 2007 Share Incentive Plan.
+Added: Basic and diluted earnings (loss) from continuing operations per share attributable to common shareholders
+Added: Basic and diluted loss from discontinued operations per share attributable to common shareholders
+Added: Basic and diluted earnings (loss) per share attributable to common shareholders:
+Added: For the Three Months Ended March 31,
+Added: This represents the share in net income using the two class method of the holders of non-vested restricted shares issued to the Company's employees under the 2019 Omnibus Incentive Plan.
Please refer to "Note 13.
1 unchanged sentence
Share Compensation and Pension Plans" of the Notes to Consolidated Financial Statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2019 , for the terms and conditions of securities that could potentially be dilutive in the future.
+Added: For the three months ended March 31, 2020 , there were no potentially dilutive securities.
MAIDEN HOLDINGS, LTD.
4 unchanged sentences
Common Shares
−Removed: At September 30, 2019 , the aggregate authorized share capital of the Company is 150,000,000 shares from which the Company has issued 88,124,360 common shares, of which 83,111,180 common shares are outstanding, and 18,600,000 preference shares, all of which are outstanding.
−Removed: The remaining 43,275,640 shares are undesignated at September 30, 2019 .
+Added: At March 31, 2020 , the aggregate authorized share capital of the Company is 150,000,000 shares from which the Company has issued 88,983,171 common shares, of which 83,969,991 common shares are outstanding, and 18,600,000 preference shares, all of which are outstanding.
+Added: The remaining 42,416,829 shares are undesignated at March 31, 2020 .
For further discussion on the components of Shareholders' Equity, please refer to the Company's Annual Report on Form 10-K for the year ended December 31, 2019 .
Treasury Shares
−Removed: During the nine months ended September 30, 2019 , the Company repurchased a total of 23,220 ( 2018 - 29,391 ) shares at an average price per share of $ 0.78 ( 2018 - $ 6.57 ) from employees, which represent withholdings in respect of tax obligations on the vesting of restricted shares and performance based shares.
−Removed: During the three and nine months ended September 30, 2018 , 205,000 were repurchased on the open market at an average price per share of $ 3.31 under the Company's share repurchase plan which has a remaining authorization of $ 74,245 at September 30, 2019 and December 31, 2018 .
−Removed: No repurchases were made during the three and nine months ended September 30, 2019 under the share repurchase plan.
+Added: During the three months ended March 31, 2019 , the Company repurchased a total of 182 shares at an average price per share of $ 1.48 from employees, which represent withholdings in respect of tax obligations on the vesting of restricted shares and performance based shares.
+Added: There were no such repurchases during the three months ended March 31, 2020 .
+Added: The Company has a remaining authorization of $ 74,245 for share repurchases at March 31, 2020 ( December 31, 2019 - $ 74,245 ).
+Added: No repurchases were made during the three months ended March 31, 2020 and 2019 under the share repurchase plan.
Accumulated Other Comprehensive Income (Loss)
The following tables set forth financial information regarding the changes in the balances of each component of AOCI:
−Removed: For the Three Months Ended September 30, 2019
+Added: For the Three Months Ended March 31, 2020
Change in net unrealized gains on investment
1 unchanged sentence
Beginning balance
−Removed: Other comprehensive (loss) income before reclassifications
+Added: Other comprehensive loss before reclassifications
Amounts reclassified from AOCI to net loss, net of tax
−Removed: Net current period other comprehensive (loss) income
−Removed: Ending balance, Maiden shareholders
−Removed: For the Three Months Ended September 30, 2018
−Removed: Change in net unrealized gains on investment
−Removed: Foreign currency translation
−Removed: Beginning balance
−Removed: Other comprehensive (loss) income before reclassifications
−Removed: Amounts reclassified from AOCI to net income, net of tax
−Removed: Net current period other comprehensive (loss) income
−Removed: Ending balance
−Removed: AOCI attributable to noncontrolling interest
+Added: Net current period other comprehensive loss
Ending balance, Maiden shareholders
−Removed: MAIDEN HOLDINGS, LTD.
−Removed: NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
−Removed: (in thousands of U.S.
−Removed: dollars, except share and per share data)
−Removed: Shareholders' Equity (continued)
−Removed: For the Nine Months Ended September 30, 2019
+Added: For the Three Months Ended March 31, 2019
Change in net unrealized gains on investment
2 unchanged sentences
Other comprehensive income before reclassifications
−Removed: Amounts reclassified from AOCI to net income, net of tax
+Added: Amounts reclassified from AOCI to net loss, net of tax
Net current period other comprehensive income
Ending balance, Maiden shareholders
−Removed: For the Nine Months Ended September 30, 2018
+Added: For the Three Months Ended March 31, 2020
Change in net unrealized gains on investment
Foreign currency translation
−Removed: Beginning balance
−Removed: Other comprehensive (loss) income before reclassifications
−Removed: Amounts reclassified from AOCI to net income, net of tax
−Removed: Net current period other comprehensive (loss) income
−Removed: Ending balance
−Removed: AOCI attributable to noncontrolling interest
−Removed: Ending balance, Maiden shareholders
−Removed: Subsequent Events
−Removed: Commutation of NGHC Quota Share
−Removed: In November 2019, Maiden Bermuda and NGHC entered into a Commutation and Release Agreement to fully and finally settle and commute all rights, obligations and liabilities, known and unknown, of each other under the NGHC Quota Share.
−Removed: Maiden Bermuda will pay NGHC $ 2,248 constituting the ceded reserve balance as at September 30, 2019 .
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.