What changed in this filing

/stocks — the workspaceLOADING

Item 1. Financial Statements

2021-08-09 compared with 2021-05-10 · 424 added, 222 removed, 1072 unchanged (38% of the section changed)

57 unchanged sentences

dollars, except per share data)

For the Three Months Ended March 31,

For the Three Months Ended June 30, For the Six Months Ended June 30,

2021 2020 2021 2020

Gross premiums written

7 unchanged sentences

Other insurance revenue

539 250 808 658

Net investment income

7,278 14,309 17,119 32,273

Net realized gains on investment

849 8,875 8,950 19,913

Total other-than-temporary impairment losses

— — — ( 1,506 )

Total revenues

1 unchanged sentence

Net loss and loss adjustment expenses

( 5,327 ) 11,008 ( 2,968 ) 32,094

Commission and other acquisition expenses

6,899 8,154 12,841 20,127

General and administrative expenses

8,906 9,261 22,903 17,811

Interest and amortization expenses

Foreign exchange and other gains ( 3,542 ) ( 8,197 )

4,832 4,830 9,663 9,661

Foreign exchange and other losses (gains) 1,588 2,295 ( 1,954 ) ( 5,902 )

Total expenses

1 unchanged sentence

Income before income taxes and interest in income of equity method investments 5,080 9,194 11,468 30,070

income tax expense 49 15

income tax benefit ( 257 ) ( 18 ) ( 208 ) ( 3 )

Interest in income of equity method investments 2,775 — 5,722 —

9 unchanged sentences

(in thousands of U.S.

For the Three Months Ended March 31,

For the Three Months Ended June 30, For the Six Months Ended June 30,

2021 2020 2021 2020

Net income $ 8,112 $ 9,212 $ 17,398 $ 30,073

Other comprehensive loss

Net unrealized holdings losses on fixed maturity investments arising during period ( 19,531 ) ( 40,203 )

Other comprehensive (loss) income

Net unrealized holdings gains (losses) on fixed maturity investments arising during period 2,206 41,778 ( 17,325 ) 1,575

Net unrealized holdings losses on equity method investments arising during period ( 2,407 ) — ( 3,419 ) —

1 unchanged sentence

Foreign currency translation adjustment ( 2,555 ) ( 3,820 ) 7,591 ( 3,823 )

Other comprehensive loss, before tax ( 14,643 ) ( 44,239 )

Income tax benefit related to components of other comprehensive loss 37 115

Other comprehensive loss, after tax ( 14,606 ) ( 44,124 )

Comprehensive loss $ ( 5,320 ) $ ( 23,263 )

Other comprehensive (loss) income, before tax ( 3,535 ) 35,590 ( 18,178 ) ( 8,649 )

Income tax benefit (expense) related to components of other comprehensive (loss) income 7 ( 101 ) 44 14

Other comprehensive (loss) income, after tax ( 3,528 ) 35,489 ( 18,134 ) ( 8,635 )

Comprehensive income (loss) $ 4,584 $ 44,701 $ ( 736 ) $ 21,438

See accompanying notes to the unaudited Condensed Consolidated Financial Statements.

2 unchanged sentences

(in thousands of U.S.

For the Three Months Ended March 31,

For the Three Months Ended June 30, For the Six Months Ended June 30,

2021 2020 2021 2020

Preference shares - Series A, C and D

3 unchanged sentences

Repurchase of Preference Shares – Series C

( 16,170 ) — ( 66,894 ) —

Repurchase of Preference Shares – Series D

( 10,841 ) — ( 61,438 ) —

Ending balance

2 unchanged sentences

Beginning balance

920 890 898 882

Exercise of options and issuance of common shares 2 7 24 15

Ending balance

922 897 922 897

Additional paid-in capital

2 unchanged sentences

Exercise of options and issuance of common shares

( 2 ) ( 7 ) ( 24 ) ( 15 )

Share-based compensation expense

282 1,041 4,315 1,584

Repurchase of Preference Shares 1,585 — 7,104 —

2 unchanged sentences

767,452 752,896 767,452 752,896

Accumulated other comprehensive income (loss)

Accumulated other comprehensive income

Beginning balance

9,251 ( 26,288 ) 23,857 17,836

Change in net unrealized losses on investment ( 24,752 ) ( 44,121 )

Change in net unrealized (losses) gains on investment ( 973 ) 39,309 ( 25,725 ) ( 4,812 )

Foreign currency translation adjustment

( 2,555 ) ( 3,820 ) 7,591 ( 3,823 )

Ending balance

12 unchanged sentences

Shares repurchased

— ( 1 ) ( 2,359 ) ( 1 )

Ending balance

6 unchanged sentences

(in thousands of U.S.

For the Three Months Ended March 31, 2021 2020

For the Six Months Ended June 30, 2021 2020

Cash flows from operating activities

49 unchanged sentences

The accompanying unaudited Condensed Consolidated Financial Statements include the accounts of Maiden Holdings, Ltd.

("Maiden Holdings") and its subsidiaries (the "Company" or "Maiden").

("Parent Company" or "Maiden Holdings") and its subsidiaries (the "Company" or "Maiden").

They have been prepared in accordance with accounting principles generally accepted in the United States ("U.S.

16 unchanged sentences

Short-term income protection business is written on a primary basis by our wholly owned subsidiaries Maiden Life Försäkrings AB ("Maiden LF") and Maiden General Försäkrings AB ("Maiden GF") in the Scandinavian and Northern European markets.

Insurance support services are provided to Maiden LF and Maiden GF by our UK services company, Maiden Global Holdings Ltd.

Insurance support services are provided to Maiden LF and Maiden GF by our services company, Maiden Global Holdings Ltd.

(“Maiden Global”), which is also a licensed intermediary in the United Kingdom.

5 unchanged sentences

("AmTrust") reinsurance agreements which were terminated in 2019 as discussed in "Note 10 - Related Party Transactions" .

We have a retroactive reinsurance agreement and a commutation agreement that further reduces our exposure to and limits the potential volatility related to these AmTrust liabilities , which are discussed in " Note 8 - Reinsurance ".

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 from Bermuda to Vermont in the U.S.

We have a retroactive reinsurance agreement and a commutation agreement that further reduces our exposure and limits the potential volatility related to these AmTrust liabilities , which are discussed in " Note 8 - Reinsurance ".

and ceased active reinsurance underwriting.

2 unchanged sentences

Re-domestication of Maiden Reinsurance

Effective March 16, 2020, we re-domesticated our principal operating subsidiary, Maiden Reinsurance, from Bermuda to the State of Vermont in the U.S., having 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.

Maiden Reinsurance is now subject to the statutes and regulations of Vermont in the ordinary course of business.

The re-domestication, in combination with other strategic measures described above that were completed in 2019, will continue to strengthen the Company’s capital position and solvency ratios.

While the Vermont Department of Financial Regulation ("Vermont DFR") is now the group supervisor for the Company, the re-domestication did not apply to the parent holding company which remains a Bermuda-based holding company.

While the Vermont Department of Financial Regulation ("Vermont DFR") is now the group supervisor for the Company, the re-domestication did not apply to the Parent Company which remains a Bermuda-based holding company.

Securities issued by Maiden Holdings were not affected by the re-domestication of Maiden Reinsurance to Vermont.

12 unchanged sentences

As described herein, the Company is not presently engaged in active reinsurance underwriting and is running off the remaining unearned exposures it has reinsured.

Maiden Global’s business development teams partner with automobile manufacturers, dealer associations and local primary insurers to design and implement point of sale insurance programs which generate revenue for the auto manufacturer and insurance premiums for the primary insurer ("IIS unit").

The Company's IIS unit does write limited primary insurance coverages that could be exposed to COVID-19 claims.

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.

The Company's Swedish and UK insurance operations ("IIS unit") do write limited primary insurance coverages that could be exposed to COVID-19 claims.

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 loss and loss adjustment expenses ("loss and LAE") and estimates of reinsurance recoverable arising from the COVID-19 pandemic may materially change.

Maiden Reinsurance has not received any COVID-19 claims to date but our companies within our IIS unit have received a limited number of claims related to those coverages which it deems as immaterial.

5 unchanged sentences

Recently Adopted Accounting Standards Updates

No new accounting standards have been recently adopted for the three months ended March 31, 2021.

No new accounting standards have been recently adopted for the six months ended June 30, 2021.

Recently Issued Accounting Standards Not Yet Adopted

13 unchanged sentences

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.

As of March 31, 2021, 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.

Therefore Topic 326 will not be effective until the 2023 fiscal year.

As of June 30, 2021, 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.

Therefore Topic 326 will not be effective until fiscal year 2023.

The Company continues to evaluate the impact of this guidance on its results of operations, financial condition and liquidity.

16 unchanged sentences

All remaining assets are allocated to Corporate.

The following tables summarize the underwriting results of our reportable segments and the reconciliation of our reportable segments' underwriting results to consolidated net income from operations:

For the Three Months Ended March 31, 2021 Diversified Reinsurance AmTrust Reinsurance Total

The following tables summarize the underwriting results of our reportable segments and the reconciliation of our reportable segments' underwriting results to consolidated net income:

For the Three Months Ended June 30, 2021 Diversified Reinsurance AmTrust Reinsurance Total

Gross premiums written

5 unchanged sentences

Other insurance revenue

Net loss and loss adjustment expenses ("loss and LAE")

Net loss and LAE ( 1,247 ) 6,574 5,327

Commission and other acquisition expenses

( 4,452 ) ( 2,447 ) ( 6,899 )

General and administrative expenses

( 3,033 ) ( 775 ) ( 3,808 )

Underwriting (loss) income $ ( 1,231 ) $ 9,702 8,471

Reconciliation to net income

Net investment income and realized gains on investment 8,127

Interest and amortization expenses

Foreign exchange and other losses, net ( 1,588 )

Other general and administrative expenses

Income tax benefit 257

Interest in income of equity method investments 2,775

Net income $ 8,112

Net loss and LAE ratio (1)

16.6 % ( 103.5 ) % ( 38.5 ) %

Commission and other acquisition expense ratio (2)

59.4 % 38.5 % 49.8 %

General and administrative expense ratio (3)

40.4 % 12.2 % 64.3 %

Expense ratio (4)

99.8 % 50.7 % 114.1 %

Combined ratio (5)

116.4 % ( 52.8 ) % 75.6 %

MAIDEN HOLDINGS, LTD.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

(in thousands of U.S.

dollars, except share and per share data)

Segment Information (continued)

For the Three Months Ended June 30, 2020 Diversified Reinsurance AmTrust Reinsurance Total

Gross premiums written

$ 9,687 $ ( 4,705 ) $ 4,982

Net premiums written

$ 8,553 $ ( 4,463 ) $ 4,090

Net premiums earned

$ 11,527 $ 9,781 $ 21,308

Other insurance revenue

Net loss and LAE

( 6,038 ) ( 4,970 ) ( 11,008 )

Commission and other acquisition expenses

6 unchanged sentences

Interest and amortization expenses

Foreign exchange and other losses, net ( 2,295 )

Other general and administrative expenses

Income tax benefit 18

Net income $ 9,212

Net loss and LAE ratio (1)

51.3 % 50.8 % 51.0 %

Commission and other acquisition expense ratio (2)

37.1 % 38.6 % 37.8 %

General and administrative expense ratio (3)

14.8 % 6.9 % 43.0 %

Expense ratio (4)

51.9 % 45.5 % 80.8 %

Combined ratio (5)

103.2 % 96.3 % 131.8 %

MAIDEN HOLDINGS, LTD.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

(in thousands of U.S.

dollars, except share and per share data)

Segment Information (continued)

For the Six Months Ended June 30, 2021 Diversified Reinsurance AmTrust Reinsurance Total

Gross premiums written

$ 5,263 $ ( 4,219 ) $ 1,044

Net premiums written

$ 4,784 $ ( 4,219 ) $ 565

Net premiums earned

$ 13,202 $ 11,874 $ 25,076

Other insurance revenue

Net loss and LAE

( 2,662 ) 5,630 2,968

Commission and other acquisition expenses

( 8,207 ) ( 4,634 ) ( 12,841 )

General and administrative expenses

( 4,607 ) ( 1,378 ) ( 5,985 )

Underwriting (loss) income $ ( 1,466 ) $ 11,492 10,026

Reconciliation to net income

Net investment income and realized gains on investment 26,069

Interest and amortization expenses

Foreign exchange and other gains, net 1,954

Other general and administrative expenses

Income tax expense ( 49 )

Interest in income of equity method investments 2,947

Income tax benefit 208

Interest in income from equity method investments 5,722

Net income $ 17,398

14 unchanged sentences

Segment Information (continued)

For the Three Months Ended March 31, 2020 Diversified Reinsurance AmTrust Reinsurance Total

For the Six Months Ended June 30, 2020 Diversified Reinsurance AmTrust Reinsurance Total

Gross premiums written

19 unchanged sentences

Other general and administrative expenses

Income tax expense ( 15 )

Income tax benefit 3

Net income $ 30,073

14 unchanged sentences

(5) Calculated by adding together net loss and LAE ratio and the expense ratio.

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, 2021 and December 31, 2020:

March 31, 2021 Diversified Reinsurance AmTrust Reinsurance Total

The following tables summarize the financial position of the Company's reportable segments including the reconciliation to the Company's consolidated total assets at June 30, 2021 and December 31, 2020:

June 30, 2021 Diversified Reinsurance AmTrust Reinsurance Total

Total assets - reportable segments

12 unchanged sentences

Segment Information (continued)

The following table sets forth financial information relating to net premiums written by major line of business and reportable segment for the three months ended March 31, 2021 and 2020:

For the Three Months Ended March 31, 2021 2020

The following tables set forth financial information relating to net premiums written by major line of business and reportable segment for the three and six months ended June 30, 2021 and 2020:

For the Three Months Ended June 30, 2021 2020

Net premiums written

Total % of Total Total % of Total

Diversified Reinsurance

1 unchanged sentence

$ 5,028 $ 8,498

10 ( 0.4 ) % — — %

Total Diversified Reinsurance

( 234 ) 8.7 % 10,372 100.0 %

AmTrust Reinsurance

2 unchanged sentences

Specialty Program

Specialty Risk and Extended Warranty

( 159 ) 1,454

Total AmTrust Reinsurance

( 1,757 ) ( 4,463 )

Total Net Premiums Written

$ 3,261 $ 4,090

For the Six Months Ended June 30, 2021 2020

Net premiums written Total Total

Diversified Reinsurance

International $ 4,784 $ 18,870

Total Diversified Reinsurance 4,784 18,925

AmTrust Reinsurance

Small Commercial Business

( 4,072 ) ( 6,394 )

Specialty Program

Specialty Risk and Extended Warranty

4 unchanged sentences

$ 565 $ 14,462

The following table sets forth financial information relating to net premiums earned by major line of business and reportable segment for the three months ended March 31, 2021 and 2020:

For the Three Months Ended March 31, 2021 2020

MAIDEN HOLDINGS, LTD.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

(in thousands of U.S.

dollars, except share and per share data)

Segment Information (continued)

The following tables set forth financial information relating to net premiums earned by major line of business and reportable segment for the three and six months ended June 30, 2021 and 2020:

For the Three Months Ended June 30, 2021 2020

Net premiums earned

17 unchanged sentences

$ 13,312 100.0 % $ 21,308 100.0 %

For the Six Months Ended June 30, 2021 2020

Net premiums earned Total % of Total Total % of Total

Diversified Reinsurance

International $ 13,202 52.6 % $ 24,003 45.7 %

Other — — % 55 0.1 %

Total Diversified Reinsurance 13,202 52.6 % 24,058 45.8 %

AmTrust Reinsurance

Small Commercial Business

( 3,846 ) ( 15.3 ) % ( 6,173 ) ( 11.8 ) %

Specialty Program

( 16 ) ( 0.1 ) % 501 1.0 %

Specialty Risk and Extended Warranty

15,736 62.8 % 34,137 65.0 %

Total AmTrust Reinsurance

11,874 47.4 % 28,465 54.2 %

Total Net Premiums Earned

$ 25,076 100.0 % $ 52,523 100.0 %

MAIDEN HOLDINGS, LTD.

8 unchanged sentences

a) Fixed Maturities

The amortized cost, gross unrealized gains and losses, and fair value of fixed maturities at March 31, 2021 and December 31, 2020 are as follows:

March 31, 2021 Original or amortized cost Gross unrealized gains Gross unrealized losses Fair value

The amortized cost, gross unrealized gains and losses, and fair value of fixed maturities at June 30, 2021 and December 31, 2020 are as follows:

June 30, 2021 Original or amortized cost Gross unrealized gains Gross unrealized losses Fair value

treasury bonds

23 unchanged sentences

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.

March 31, 2021 Amortized cost Fair value

June 30, 2021 Amortized cost Fair value

Due in one year or less

14 unchanged sentences

Less than 12 Months 12 Months or More Total

March 31, 2021 Fair

June 30, 2021 Fair

value Unrealized

5 unchanged sentences

8,175 ( 95 ) — — 8,175 ( 95 )

government bonds 1,349 ( 16 ) — — 1,349 ( 16 )

Asset-backed securities 42,265 ( 536 ) 11,288 ( 62 ) 53,553 ( 598 )

8 unchanged sentences

Investments (continued)

At March 31, 2021, there were 55 securities in an unrealized loss position with a fair value of $ 179,462 and unrealized losses of $ 6,377 .

At June 30, 2021, there were 45 securities in an unrealized loss position with a fair value of $ 229,901 and unrealized losses of $ 5,062 .

Of these securities, there were 18 securities that have been in an unrealized loss position for twelve months or greater with a fair value of $ 64,763 and unrealized losses of $ 3,093 .

15 unchanged sentences

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.

At March 31, 2021, 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.

At June 30, 2021, 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.

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.

Based on the Company's analysis, our fixed maturity portfolio is of high credit quality and we believe the amortized cost basis of the securities will ultimately be recovered.

Any credit-related impairment related to fixed maturity securities that the Company does not plan to sell and for which we are 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.

Based on analysis, our fixed maturity portfolio is of high credit quality and we believe the amortized cost basis of the securities will ultimately be recovered.

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.

For the three months ended March 31, 2020, the Company recognized $ 1,506 in OTTI charges in earnings on two fixed maturity securities.

There was no impairment recognized for the three months ended March 31, 2021.

The following tables summarize the credit ratings of our fixed maturities as at March 31, 2021 and December 31, 2020:

March 31, 2021 Amortized cost Fair value % of Total

For the six months ended June 30, 2020, the Company recognized $ 1,506 in OTTI charges in earnings on two fixed maturity securities.

There was no impairment recorded for the three and six months ended June 30, 2021 and the three months ended June 30, 2020.

The following tables summarize the credit ratings of our fixed maturities as at June 30, 2021 and December 31, 2020:

June 30, 2021 Amortized cost Fair value % of Total

treasury bonds

28 unchanged sentences

b) Other Investments and Equity Method Investments

Certain of the Company's other investments and equity method investments are subject to restrictions on redemptions and sales that are determined by the governing documents, which could limit our ability to liquidate those investments.

These restrictions may include lock-ups, redemption gates, restricted share classes, restrictions on the frequency of redemption and notice periods.

A gate is the ability to deny or delay a redemption request.

Certain other investments and equity method investments may not have any restrictions governing their sale, but there is no active market and no guarantee that we will be able to execute a sale in a timely manner.

In addition, even if certain other investments and equity method investments are not eligible for redemption or sales are restricted, the Company may still receive income distributions from those investments.

Other investments

The table shows the composition of the Company's other investments as at March 31, 2021 and December 31, 2020:

March 31, 2021 December 31, 2020

The table shows the composition of the Company's other investments as at June 30, 2021 and December 31, 2020:

June 30, 2021 December 31, 2020

Carrying value % of Total Carrying value % of Total

7 unchanged sentences

Total other investments $ 88,238 100.0 % $ 67,010 100.0 %

The Company's investments in direct lending entities of $ 36,533 at March 31, 2021 (December 31, 2020 - $ 36,571 ) are carried at cost less impairment, if any, with any indication of impairment recognized in income when determined.

Private equity investments consist of direct investments in privately held entities.

Investments in limited partnerships consist of investments in private equity funds and private equity co-investments with sponsoring entities.

The Company's investments in direct lending entities of $ 36,486 at June 30, 2021 (December 31, 2020 - $ 36,571 ) are carried at cost less impairment, if any, with any indication of impairment recognized in income when determined.

Please see "Note 5(d) - Fair Value Measurements" for additional information regarding this investment.

Certain of the Company's other investments are subject to restrictions on redemptions and sales that are determined by the governing documents, which limits our ability to liquidate those investments.

These restrictions may include lock-ups, redemption gates, restricted share classes, restrictions on the frequency of redemption and notice periods.

A gate is the ability to deny or delay a redemption request.

Certain other investments may not have any restrictions governing their sale, but there is no active market and no guarantee that we will be able to execute a sale in a timely manner.

In addition, even if certain other investments are not eligible for redemption or sales are restricted, the Company may still receive income distributions from those other investments.

The Company's remaining unfunded commitments on other investments as at March 31, 2021 and December 31, 2020 were:

March 31, 2021 December 31, 2020

The Company's remaining unfunded commitments on other investments as at June 30, 2021 and December 31, 2020 were:

June 30, 2021 December 31, 2020

Fair Value % of Total Fair Value % of Total

5 unchanged sentences

Equity Method Investments

Certain of the Company's investments include an interest in variable interest entities which are not consolidated limited partnerships, as it has been determined that the Company is not the primary beneficiary.

However, there is deemed to be limited influence over the operating and financial policies of the investee and accordingly these investments are reported under the equity method of accounting.

In applying the equity method of accounting, the investments are initially recorded at cost and are subsequently adjusted based on the Company’s proportionate share of the investee's net income or loss.

The maximum exposure to loss on these interests is limited to the amount of commitment made by the Company.

The equity method investments include hedge funds and investments in limited partnerships such as direct lending funds, private equity funds and real estate funds.

The table below shows the carrying value of the Company's equity method investments as at March 31, 2021 and December 31, 2020:

March 31, 2021 December 31, 2020

The equity method investments include hedge funds and investments in limited partnerships such as direct lending funds and real estate funds.

The table below shows the carrying value of the Company's equity method investments as at June 30, 2021 and December 31, 2020:

June 30, 2021 December 31, 2020

Carrying Value % of Total Carrying Value % of Total

2 unchanged sentences

Total equity method investments $ 60,113 100.0 % $ 39,886 100.0 %

However, there is deemed to be limited influence over the operating and financial policies of the investee and accordingly these investments are reported under the equity method of accounting.

MAIDEN HOLDINGS, LTD.

3 unchanged sentences

Investments (continued)

Generally, the maximum exposure to loss on these interests is limited to the amount of commitment made by the Company.

However, certain of the Company's investments in limited partnerships are related to real estate joint ventures with interests in multi-property projects with varying strategies ranging from the development of properties to the ownership of income-producing properties.

In certain of these joint ventures, the Company has provided certain indemnities, guarantees and commitments to certain parties su ch that it may be required to make payments now or in the future and are more fully described (as applicable) in "Note 11 - Commitments, Contingencies and Guarantees" in these financial statements.

The Company's remaining unfunded commitments on equity method investments as at June 30, 2021 was $ 45,691 .

c) Net Investment Income

Net investment income was derived from the following sources for the three months ended March 31, 2021 and 2020:

For the Three Months Ended March 31,

Net investment income was derived from the following sources for the three and six months ended June 30, 2021 and 2020:

For the Three Months Ended June 30, For the Six Months Ended June 30,

2021 2020 2021 2020

Fixed maturities

11 unchanged sentences

The following tables show the net realized gains (losses) on investment included in the Condensed Consolidated Statements of Income:

For the Three Months Ended March 31, 2021 Gross gains Gross losses Net

For the Three Months Ended June 30, 2021 Gross gains Gross losses Net

Fixed maturities

4 unchanged sentences

$ 1,555 $ ( 706 ) $ 849

For the Three Months Ended March 31, 2020 Gross gains Gross losses Net

For the Three Months Ended June 30, 2020 Gross gains Gross losses Net

Fixed maturities

1 unchanged sentence

Other investments

— ( 184 ) ( 184 )

Net realized gains (losses) on investment

$ 9,059 $ ( 184 ) $ 8,875

For the Six Months Ended June 30, 2021 Gross gains Gross losses Net

AFS fixed maturities

$ 4,247 $ ( 244 ) $ 4,003

Equity securities 4,957 ( 611 ) 4,346

Other investments

626 ( 25 ) 601

Net realized gains (losses) on investment

$ 9,830 $ ( 880 ) $ 8,950

For the Six Months Ended June 30, 2020 Gross gains Gross losses Net

AFS fixed maturities

$ 19,991 $ ( 1 ) $ 19,990

Other investments

107 ( 184 ) ( 77 )

Net realized gains (losses) on investment

$ 20,098 $ ( 185 ) $ 19,913

MAIDEN HOLDINGS, LTD.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

(in thousands of U.S.

dollars, except share and per share data)

Investments (continued)

Realized gains and losses from equity securities detailed in the table above include both sales of securities and unrealized gains and losses from fair value changes.

The portion of unrealized gains recognized within net income for investments still held at the end of March 31, 2021 and 2020, respectively, were as follows:

For the Three Months Ended March 31, 2021 2020

Net gains recognized for equity securities during the period $ 4,957 $ —

The portion of unrealized gains recognized in net income for the three and six months ended June 30, 2021 and 2020 for investments still held at the end of June 30, 2021 and 2020, respectively, were as follows:

For the Three Months Ended June 30, For the Six Months Ended June 30,

2021 2020 2021 2020

Net (losses) gains recognized for equity securities during the period $ ( 611 ) $ — $ 4,346 $ —

Net gains recognized for equity securities divested during the period — — ( 441 ) —

Unrealized gains recognized for equity securities still held at reporting date $ 4,516 $ —

Proceeds from sales of fixed maturities were $ 153,816 for the three months ended March 31, 2021 (2020 - $ 224,471 ).

Net unrealized gains on investments was as follows at March 31, 2021 and December 31, 2020, respectively:

March 31, 2021 December 31, 2020

Unrealized (losses) gains recognized for equity securities still held at reporting date $ ( 611 ) $ — $ 3,905 $ —

Proceeds from sales of fixed maturities were $ 52,538 and $ 206,354 for the three and six months ended June 30, 2021, respectively (2020 - $ 181,030 and $ 405,501 , respectively).

Net unrealized gains on investments was as follows at June 30, 2021 and December 31, 2020, respectively:

June 30, 2021 December 31, 2020

Fixed maturities

8 unchanged sentences

$ ( 25,725 ) $ 27,361

MAIDEN HOLDINGS, LTD.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

(in thousands of U.S.

dollars, except share and per share data)

Investments (continued)

e) Restricted Cash and Cash Equivalents and Investments

1 unchanged sentence

The assets in trust as collateral are primarily cash and highly rated fixed maturities.

The fair values of these restricted assets were as follows at March 31, 2021 and December 31, 2020:

March 31, 2021 December 31, 2020

The fair values of these restricted assets were as follows at June 30, 2021 and December 31, 2020:

June 30, 2021 December 31, 2020

Restricted cash – third party agreements $ 20,425 $ 20,547

19 unchanged sentences

The hierarchy is broken down into three levels based on the reliability of inputs:

MAIDEN HOLDINGS, LTD.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

(in thousands of U.S.

dollars, except share and per share data)

Fair Value Measurements (continued)

• Level 1 — Valuations based on unadjusted quoted market prices for identical assets or liabilities that we have the ability to access.

25 unchanged sentences

The Company will challenge any prices for its investments which are considered not to be representative of fair value.

MAIDEN HOLDINGS, LTD.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

(in thousands of U.S.

dollars, except share and per share data)

Fair Value Measurements (continued)

If quoted market prices and an estimate from the Pricing Service are unavailable, the Company produces an estimate of fair value based on dealer quotations for recent activity in positions with the same or similar characteristics to that being valued.

2 unchanged sentences

ASC 825, "Disclosure About Fair Value of Financial Instruments" , requires all entities to disclose the fair value of their financial instruments for assets and liabilities recognized and not recognized in the balance sheet, for which it is practicable to estimate fair value.

The following describes the valuation techniques used by the Company to determine the fair value of financial instruments that are measured at fair value on a recurring basis held at March 31, 2021 and December 31, 2020.

government and U.S.

25 unchanged sentences

As significant inputs used to price corporate and municipal bonds are observable market inputs, fair values are included in the Level 2 fair value hierarchy.

MAIDEN HOLDINGS, LTD.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

(in thousands of U.S.

dollars, except share and per share data)

Fair Value Measurements (continued)

Equity securities - The fair value of equity securities is primarily priced by pricing services, reflecting the closing price quoted for the final trading day of the period.

3 unchanged sentences

• Private equity investments:

These are privately held equity investments in common and preferred stock.

These are direct equity investments in common and preferred stock of privately held entities.

The fair values are estimated using quarterly financial statements and/or recent private market transactions and thus included under Level 3 of the fair value hierarchy due to unobservable market data used for valuation.

• Private credit lending investments:

These are privately held equity investments in common stock valued using the most recently available or quarterly NAV statements as provided by the external fund manager or third-party administrator and therefore measured using the NAV as a practical expedient.

These are privately held equity investments in common stock of entities that lend money valued using the most recently available or quarterly NAV statements as provided by the external fund manager or third-party administrator and therefore measured using the NAV as a practical expedient.

• Investment in limited partnerships:

These investments are primarily comprised of investments in certain private equity funds.

These are private equity funds, private equity co-investments with sponsoring entities and investments in real estate limited partnerships and joint ventures .

The fair value is estimated based on the most recently available NAV as advised by the external fund manager or third-party administrator.

12 unchanged sentences

Fair Value Measurements (continued)

At March 31, 2021 and December 31, 2020, the Company classified its financial instruments measured at fair value on a recurring basis in the following valuation hierarchy:

March 31, 2021 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Fair Value Based on NAV Practical Expedient Total Fair Value

At June 30, 2021 and December 31, 2020, the Company classified financial instruments measured at fair value on a recurring basis in the following valuation hierarchy:

June 30, 2021 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Fair Value Based on NAV Practical Expedient Total Fair Value

Fixed maturities

26 unchanged sentences

The Company analyzes and reviews the information and prices received from the Pricing Service to ensure that the prices provided represent a reasonable estimate of fair value.

The Pricing Service was utilized to estimate fair value measurements for 99.3 % and 99.1 % of our fixed maturities at March 31, 2021 and December 31, 2020, respectively.

The Pricing Service was utilized to estimate fair value measurements for 99.3 % and 99.1 % of our fixed maturities at June 30, 2021 and December 31, 2020, respectively.

The Pricing Service utilizes market quotations for fixed maturity securities that have quoted market prices in active markets.

1 unchanged sentence

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.

At March 31, 2021 and December 31, 2020, approximately 0.7 % and 0.9 %, respectively, of the Level 2 fixed maturities are valued using the market approach.

At March 31, 2021, one security or $ 6,427 (2020 - two securities or $ 10,809 ) of fixed maturities classified as Level 2 were priced using a quotation from a broker and/or custodian as opposed to the Pricing Service due to lack of information available.

At March 31, 2021 and December 31, 2020, the Company has not adjusted any pricing provided to it based on the review performed by its investment managers.

During the three months ended March 31, 2021, the Company transferred its equity investment in an insurtech start-up company focused on technological advancement in the automobile insurance industry out of Level 3 within the fair value hierarchy and into Level 1 due to the recent completion of their initial public offering.

There were no transfers to or from Level 3 during the three months ended March 31, 2020.

At June 30, 2021 and December 31, 2020, approximately 0.7 % and 0.9 %, respectively, of our fixed maturities were valued using the market approach.

At June 30, 2021, one security or $ 6,545 (2020 - two securities or $ 10,809 ) of fixed maturities classified as Level 2 were priced using a quotation from a broker and/or custodian as opposed to the Pricing Service due to lack of information available.

At June 30, 2021 and December 31, 2020, the Company has not adjusted any pricing provided to it based on the review performed by its investment managers.

During the six months ended June 30, 2021, the Company transferred its equity investment in an insurtech start-up company focused on technological advancement in the automobile insurance industry out of Level 3 within the fair value hierarchy and into Level 1 due to the recent completion of their initial public offering.

There were no transfers to or from Level 3 during the six months ended June 30, 2020.

MAIDEN HOLDINGS, LTD.

4 unchanged sentences

At March 31, 2021, the Company holds Level 3 financial instruments of $ 29,344 (December 31, 2020 - $ 26,094 ) which includes privately held equity investments in common and preferred stock.

At June 30, 2021, the Company holds Level 3 financial instruments of $ 29,344 (December 31, 2020 - $ 26,094 ) which includes privately held equity investments in common and preferred stock.

The fair value of these investments are estimated using quarterly unaudited financial statements or recent private market transactions, where applicable.

Due to significant unobservable inputs in these valuations, the Company classifies their fair values as Level 3 within the fair value hierarchy.

The following table provides a summary of quantitative information regarding the significant unobservable inputs used in determining the fair value of other investments measured at fair value on a recurring basis under the Level 3 classification at March 31, 2021:

Fair Value Valuation Technique Unobservable Inputs Range

2 unchanged sentences

Total Level 3 investments $ 29,344

The following table shows the reconciliation of the beginning and ending balances for other investments measured at fair value on a recurring basis using Level 3 inputs for the three months ended March 31, 2021 and 2020.

The Company includes any related interest and dividend income in net investment income thus are excluded from the reconciliation in the table below:

For the Three Months Ended March 31, 2021 2020

Balance - January 1 $ 26,094 $ 1,800

The Company includes any related interest and dividend income in net investment income and thus are excluded from the reconciliation in the table below:

For the Three Months Ended June 30, For the Six Months Ended June 30,

2021 2020 2021 2020

Balance - beginning of period $ 29,344 $ 1,800 $ 26,094 $ 1,800

Purchases — 1,000 4,250 1,000

3 unchanged sentences

The fair value of financial instruments accounting guidance also applies to financial instruments disclosed, but not carried, at fair value, except for certain financial instruments related to insurance contracts .

At March 31, 2021, the carrying values of cash and cash equivalents (including restricted amounts), accrued investment income, reinsurance balances receivable, loan to related party, liability for securities purchased and certain other assets and liabilities approximate fair values due to their inherent short duration.

At June 30, 2021, the carrying values of cash and cash equivalents (including restricted amounts), accrued investment income, reinsurance balances receivable, loan to related party, liability for securities purchased and certain other assets and liabilities approximate fair values due to their inherent short duration.

As these financial instruments are not actively traded, their fair values are classified as Level 2.

1 unchanged sentence

The fair value estimates of these investments are not based on observable market data and, as a result, are classified as Level 3.

The fair values of the Senior Notes are based on indicative market pricing obtained from a third-party pricing service which uses observable market inputs, and therefore the fair values of these liabilities are classified as Level 2.

The following table presents the respective carrying value and fair value for the Senior Notes as at March 31, 2021 and December 31, 2020:

March 31, 2021 December 31, 2020

The fair values of the Senior Notes (as defined in "Note 7 - Long-Term Debt" ) are based on indicative market pricing obtained from a third-party pricing service which uses observable market inputs, and therefore the fair values of these liabilities are classified as Level 2.

The following table presents the respective carrying value and fair value for the Senior Notes as at June 30, 2021 and December 31, 2020:

June 30, 2021 December 31, 2020

Carrying Value Fair Value Carrying Value Fair Value

10 unchanged sentences

a) Common Shares

At March 31, 2021, the aggregate authorized share capital of the Company is 150,000,000 shares from which 91,954,619 common shares were issued, of which 86,141,057 common shares are outstanding, and 18,600,000 preference shares were issued, all of which are outstanding.

The remaining 39,445,381 shares are undesignated at March 31, 2021.

At June 30, 2021, the aggregate authorized share capital of the Company is 150,000,000 shares from which 92,233,783 common shares were issued, of which 86,420,221 common shares are outstanding, and 18,600,000 preference shares were issued, all of which are outstanding.

The remaining 39,166,217 shares are undesignated at June 30, 2021.

Excluding the preference shares held by Maiden Reinsurance, a total of 7,255,368 preference shares are held by non-affiliates.

1 unchanged sentence

On March 3, 2021, the Company's Board of Directors approved the repurchase, including the repurchase by Maiden Reinsurance in accordance with its investment guidelines, of up to $ 100,000 of the Company's preference shares from time to time at market prices in open market purchases or as may be privately negotiated.

During March 2021, Maiden Reinsurance accepted for purchase primarily via private negotiation with certain security holders, (i) 2,561,636 shares of the Company's 8.25 % Non-Cumulative Preference Shares Series A at an average price of $ 14.88 per share, (ii) 2,028,961 shares of the Company's 7.125 % Non-Cumulative Preference Shares Series C at an average price of $ 14.65 per share, and (iii) 2,023,896 shares o f the Company's 6.7 % Non-Cumulative Preference Shares Series D at an average price of $ 14.60 per share for a total amount of $ 97,393 .

The acquisition by Maiden Reinsurance of these preference shares was made in compliance with the Company's investment guidelines previously approved by the Vermont DFR.

These preference share purchases have resulted in a gain of $ 62,450 in the three months ended March 31, 2021 .

Please refer to "Note 14 — Subsequent Event" for further information on the repurchase of our preference shares.

On May 6, 2021, the Company's Board of Directors approved the additional repurchase, including the repurchase by Maiden Reinsurance in accordance with its investment guidelines (as may be amended), of up to $ 50,000 of the Company's preference shares from time to time at market prices in open market purchases or as may be privately negotiated.

The authorizations that were approved on March 3, 2021 and May 6, 2021 as described above are collectively referred to as the "2021 Preference Share Repurchase Program".

The following table shows the summary of repurchases made of the Company's preference shares pursuant to the 2021 Preference Share Repurchase Program during the three and six months ended June 30, 2021:

For the Three Months Ended June 30, 2021 For the Six Months Ended June 30, 2021

Number of shares purchased Average price of shares purchased Number of shares purchased Average price of shares purchased

Series A 822,104 $ 14.52 3,383,740 $ 14.79

Series C 646,817 14.17 2,675,778 14.54

Series D 433,623 14.22 2,457,519 14.53

Total 1,902,544 14.33 8,517,037 14.64

Total price paid $ 27,264 $ 124,658

Gain on purchase $ 18,714 $ 81,164

The following table shows the summary of changes for the Company's preference shares outstanding at June 30, 2021:

Series A Series C Series D Total

Outstanding shares issued by Maiden Holdings 6,000,000 6,600,000 6,000,000 18,600,000

Shares held by Maiden Reinsurance - December 31, 2020

545,218 1,203,466 1,078,911 2,827,595

Shares purchased by Maiden Reinsurance during the three months ended March 31, 2021 2,561,636 2,028,961 2,023,896 6,614,493

Shares purchased by Maiden Reinsurance during the three months ended June 30, 2021 822,104 646,817 433,623 1,902,544

Total shares held by Maiden Reinsurance - June 30, 2021

3,928,958 3,879,244 3,536,430 11,344,632

Total shares held by non-affiliates - June 30, 2021

2,071,042 2,720,756 2,463,570 7,255,368

Percentage held by Maiden Reinsurance - June 30, 2021

65.5 % 58.8 % 58.9 % 61.0 %

The Company has a remaining authorization of $ 25,342 for preference share repurchases at June 30, 2021.

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, 2020.

c) Treasury Shares

During the three months ended March 31, 2021, the Company repurchased a total of 799,548 common shares at an average price per share of $ 2.95 from employees, which represent withholding in respect of tax obligations on the vesting of both non-performance-based and discretionary performance-based restricted shares.

There were no such repurchases during the three months ended March 31, 2020.

During the six months ended June 30, 2021, the Company repurchased a total of 799,548 (2020 - 834 ) common shares at an average price per share of $ 2.95 (2020 - $ 1.13 ) from employees, which represent withholding in respect of tax obligations on the vesting of both non-performance-based and discretionary performance-based restricted shares.

There were no such repurchases during the three months ended June 30, 2021 (2020 - 834 common shares at an average price per share of $ 1.13 ).

MAIDEN HOLDINGS, LTD.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

(in thousands of U.S.

dollars, except share and per share data)

Shareholders' Equity (continued)

On February 21, 2017, the Company's Board of Directors approved the repurchase of up to $ 100,000 of the Company's common shares from time to time at market prices.

The Company has a remaining authorization of $ 74,245 for share repurchases at March 31, 2021 (December 31, 2020 - $ 74,245 ).

No repurchases were made during the three months ended March 31, 2021 and 2020 under the common share repurchase plan.

The Company has a remaining authorization of $ 74,245 for share repurchases at June 30, 2021 (December 31, 2020 - $ 74,245 ).

No repurchases were made during the three and six months ended June 30, 2021 and 2020 under the common share repurchase plan.

d) Accumulated Other Comprehensive Income

The following tables set forth financial information regarding the changes in the balances of each component of AOCI:

For the Three Months Ended March 31, 2021 Change in net unrealized gains on investment Foreign currency translation Total

For the Three Months Ended June 30, 2021 Change in net unrealized gains on investment Foreign currency translation Total

Beginning balance $ 24,605 $ ( 15,354 ) $ 9,251

Other comprehensive loss before reclassifications ( 194 ) ( 2,555 ) ( 2,749 )

Amounts reclassified from AOCI to net income, net of tax ( 779 ) — ( 779 )

Net current period other comprehensive loss ( 973 ) ( 2,555 ) ( 3,528 )

Ending balance, Maiden shareholders $ 23,632 $ ( 17,909 ) $ 5,723

For the Three Months Ended June 30, 2020 Change in net unrealized gains on investment Foreign currency translation Total

Beginning balance $ ( 22,125 ) $ ( 4,163 ) $ ( 26,288 )

Other comprehensive income (loss) before reclassifications 41,677 ( 3,820 ) 37,857

Amounts reclassified from AOCI to net income, net of tax ( 2,368 ) — ( 2,368 )

Net current period other comprehensive income (loss) 39,309 ( 3,820 ) 35,489

Ending balance, Maiden shareholders $ 17,184 $ ( 7,983 ) $ 9,201

For the Six Months Ended June 30, 2021 Change in net unrealized gains on investment Foreign currency translation Total

Beginning balance

$ 49,357 $ ( 25,500 ) $ 23,857

Other comprehensive (loss) income before reclassifications ( 20,700 ) 7,591 ( 13,109 )

Amounts reclassified from AOCI to net income, net of tax

( 5,025 ) — ( 5,025 )

Net current period other comprehensive (loss) income ( 25,725 ) 7,591 ( 18,134 )

Ending balance, Maiden shareholders

For the Three Months Ended March 31, 2020 Change in net unrealized gains on investment Foreign currency translation Total

$ 23,632 $ ( 17,909 ) $ 5,723

For the Six Months Ended June 30, 2020 Change in net unrealized gains on investment Foreign currency translation Total

Beginning balance

Other comprehensive loss before reclassifications ( 40,088 ) ( 3 ) ( 40,091 )

Amounts reclassified from AOCI to net loss, net of tax ( 4,033 ) — ( 4,033 )

$ 21,996 $ ( 4,160 ) $ 17,836

Other comprehensive income (loss) before reclassifications 1,589 ( 3,823 ) ( 2,234 )

Amounts reclassified from AOCI to net income, net of tax ( 6,401 ) — ( 6,401 )

Net current period other comprehensive loss ( 4,812 ) ( 3,823 ) ( 8,635 )

Ending balance, Maiden shareholders

$ 17,184 $ ( 7,983 ) $ 9,201

MAIDEN HOLDINGS, LTD.

3 unchanged sentences

Long-Term Debt

At March 31, 2021 and December 31, 2020, both Maiden Holdings and its wholly owned subsidiary, Maiden NA, had outstanding publicly-traded senior notes which were issued in 2016 ("2016 Senior Notes") and 2013 ("2013 Senior Notes"), respectively (collectively "Senior Notes").

At June 30, 2021 and December 31, 2020, both Maiden Holdings and its wholly owned subsidiary, Maiden NA, had 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.

The following tables detail the issuances of Senior Notes outstanding at March 31, 2021 and December 31, 2020:

March 31, 2021 2016 Senior Notes 2013 Senior Notes Total

The following tables detail the issuances of Senior Notes outstanding at June 30, 2021 and December 31, 2020:

June 30, 2021 2016 Senior Notes 2013 Senior Notes Total

Principal amount

13 unchanged sentences

Effective interest rate 7.07 % 8.04 %

The interest expense incurred on the Senior Notes for the three months ended March 31, 2021 was $ 4,777 (2020 - $ 4,777 ), of which $ 1,342 was accrued at both March 31, 2021 and December 31, 2020, respectively.

The interest expense incurred on the Senior Notes for the three and six months ended June 30, 2021 was $ 4,776 and $ 9,553 , respectively (2020 - $ 4,776 and $ 9,553 , respectively), of which $ 1,342 was accrued at both June 30, 2021 and December 31, 2020, respectively.

The issuance costs related to the Senior Notes were capitalized and are being amortized over the effective life of the Senior Notes.

The amortization expense for the three months ended March 31, 2021 was $ 54 (2020 - $ 54 ).

The amortization expense for the three and six months ended June 30, 2021 was $ 56 and $ 110 , respectively (2020 - $ 54 and $ 108 , respectively).

Under the terms of the 2013 Senior Notes, the 2013 Senior Notes can be redeemed, in whole or in part, 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.

Maiden NA is required to give at least thirty days and not more than sixty days notice prior to the redemption date.

Under the terms of the 2016 Senior Notes, the 2016 Senior Notes can be redeemed, in whole or in part, at Maiden Holdings' 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.

Maiden Holdings is required to give at least thirty days and not more than sixty days notice prior to the redemption date.

MAIDEN HOLDINGS, LTD.

7 unchanged sentences

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.

The effect of ceded reinsurance on net premiums written and earned and on net loss and LAE for the three months ended March 31, 2021 and 2020 was as follows:

For the Three Months Ended March 31, 2021 2020

The effect of ceded reinsurance on net premiums written and earned and on net loss and LAE for the six months ended June 30, 2021 and 2020 was as follows:

For the Six Months Ended June 30, 2021 2020

Premiums written

7 unchanged sentences

( 1,309 ) ( 1,827 )

$ 25,076 $ 52,523

Gross loss and LAE

2 unchanged sentences

2,894 ( 358 )

The Company's reinsurance recoverable on unpaid losses balance as at March 31, 2021 was $ 580,709 (December 31, 2020 - $ 592,571 ) presented in the Condensed Consolidated Balance Sheets.

At March 31, 2021 and December 31, 2020, the Company had no valuation allowance against reinsurance recoverable on unpaid losses.

$ ( 2,968 ) $ 32,094

The Company's reinsurance recoverable on unpaid losses balance as at June 30, 2021 was $ 565,549 (December 31, 2020 - $ 592,571 ) presented in the Condensed Consolidated Balance Sheets.

At June 30, 2021 and December 31, 2020, the Company had no valuation allowance against reinsurance recoverable on unpaid losses.

On December 27, 2018, Cavello Bay Reinsurance Limited ("Cavello") and Maiden Reinsurance entered into a retrocession agreement pursuant to which certain assets and liabilities associated with the U.S.

treaty reinsurance business held by Maiden Reinsurance were 100.0 % retroceded to Cavello in exchange for a ceding commission.

The reinsurance recoverable on unpaid losses due from Cavello under this retrocession agreement was $ 66,444 at March 31, 2021 (December 31, 2020 - $ 67,972 ).

On July 31, 2019, Maiden Reinsurance and Cavello entered into a Loss Portfolio Transfer and Adverse Development Cover Agreement ("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 .

The reinsurance recoverable on unpaid losses due from Cavello under this retrocession agreement was $ 62,541 at June 30, 2021 (December 31, 2020 - $ 67,972 ).

On July 31, 2019, Maiden Reinsurance and Cavello entered into a Loss Portfolio Transfer and Adverse Development Cover Agreement (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 .

The $ 2,178,535 retention is subject to adjustment for paid losses subsequent to December 31, 2018.

4 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.

As of March 31, 2021, the reinsurance recoverable on unpaid losses under the retroactive reinsurance agreement was $ 510,096 while the deferred gain liability was $ 65,096 (December 31, 2020 - $ 519,941 and $ 74,941 , respectively).

As of June 30, 2021, the reinsurance recoverable on unpaid losses under the retroactive reinsurance agreement was $ 499,254 while the deferred gain liability was $ 54,254 (December 31, 2020 - $ 519,941 and $ 74,941 , respectively).

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.

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.

Cavello provided collateral in the form of a letter of credit in the amount of $ 445,000 to AmTrust under the LPT/ADC Agreement.

Cavello is subject to additional collateral funding requirements as explained in "Note 10.

Related Party Transactions".

As of June 30, 2021, the amount of collateral required was $ 430,552 .

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 .

Cavello's parent company, Enstar, has credit ratings of BBB from both Standard & Poor's and Fitch Ratings at March 31, 2021.

Cavello's parent company, Enstar, has credit ratings of BBB from both Standard & Poor's and Fitch Ratings at June 30, 2021.

MAIDEN HOLDINGS, LTD.

16 unchanged sentences

The reserve for loss and LAE consists of:

March 31, 2021 December 31, 2020

June 30, 2021 December 31, 2020

Reserve for reported loss and LAE

5 unchanged sentences

The following table represents a reconciliation of our beginning and ending gross and net loss and LAE reserves:

For the Three Months Ended March 31, 2021 2020

For the Six Months Ended June 30, 2021 2020

Gross loss and LAE reserves, January 1

6 unchanged sentences

15,393 32,687

( 18,361 ) ( 593 )

( 2,968 ) 32,094

Net paid losses related to:

5 unchanged sentences

( 11,177 ) ( 7,408 )

Net loss and LAE reserves, March 31 1,203,799 1,628,163

Reinsurance recoverable on unpaid losses, March 31 580,709 620,882

Gross loss and LAE reserves, March 31 $ 1,784,508 $ 2,249,045

Net loss and LAE reserves, June 30 1,109,041 1,453,726

Reinsurance recoverable on unpaid losses, June 30 565,549 617,496

Gross loss and LAE reserves, June 30 $ 1,674,590 $ 2,071,222

Prior period development arises from changes to loss estimates recognized in the current year that relate to loss reserves established in previous calendar years.

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.

During the three months ended March 31, 2021, the Company recognized net favorable prior year loss development of $ 5,554 (2020 - favorable $ 533 ).

In the Diversified Reinsurance segment, net adverse prior year loss development was $ 14 for the three months ended March 31, 2021 (2020 - favorable $ 533 ).

Prior year loss development for the three months ended March 31, 2021 was due to adverse reserve development in European Capital Solutions and other runoff business.

The favorable development for the three months ended March 31, 2020 was primarily due to favorable reserve development in German Auto Programs.

During the three and six months ended June 30, 2021, the Company recognized net favorable prior year loss development of $ 12,807 and $ 18,361 , respectively (2020 - favorable $ 60 and $ 593 , respectively).

In the Diversified Reinsurance segment, net favorable prior year loss development was $ 951 and $ 937 , respectively, for the three and six months ended June 30, 2021 (2020 - adverse $ 362 and favorable $ 171 , respectively).

Prior year loss development for the three and six months ended June 30, 2021 was due to favorable reserve development in German Auto Programs, European Capital Solutions and other runoff business.

The favorable development for the six months ended June 30, 2020 was primarily due to favorable reserve development in German Auto Programs partly offset by adverse development in specific German Auto Programs for the three months ended June 30, 2020.

MAIDEN HOLDINGS, LTD.

3 unchanged sentences

Reserve for Loss and Loss Adjustment Expenses (continued)

In the AmTrust Reinsurance segment, the net favorable prior year loss development was $ 5,568 for the three months ended March 31, 2021 (2020 - $ 0 ).

The net favorable prior year loss development for the three months ended March 31, 2021 was primarily due to favorable development in Workers Compensation partly offset by adverse development in Hospital Liability.

Retroactive reinsurance adjustment of $ 9,845 represents the decrease in reinsurance recoverable on unpaid losses under the LPT/ADC Agreement with Cavello that was recognized in the three months ended March 31, 2021 (2020 - $ 0 ) in the reconciliation of our beginning and ending gross and net loss and LAE reserves presented above.

It reflects the corresponding decrease in the deferred gain on retroactive reinsurance for favorable development on reserves covered under the LPT/ADC Agreement of $ 9,845 during the three months ended March 31, 2021.

The deferred gain on retroactive reinsurance represents the cumulative adverse development under the AmTrust Quota Share covered under the LPT/ADC Agreement at March 31, 2021 and December 31, 2020.

In the AmTrust Reinsurance segment, the net favorable prior year loss development was $ 11,856 and $ 17,424 , respectively, for the three and six months ended June 30, 2021 (2020 - favorable $ 422 for both periods).

The net favorable prior year loss development for the three and six months ended June 30, 2021 was primarily due to favorable development in Workers Compensation and Commercial Auto Liability partly offset by adverse development in Hospital Liability.

The net favorable prior year loss development for the three and six months ended June 30, 2020 was primarily due to favorable development in Workers Compensation partly offset by adverse development within Commercial General Liability programs.

Retroactive reinsurance adjustment of $ 20,687 represents the decrease in reinsurance recoverable on unpaid losses under the LPT/ADC Agreement with Cavello that was recognized in the six months ended June 30, 2021 (2020 - $ 1,410 ) in the reconciliation of our beginning and ending gross and net loss and LAE reserves presented above.

It reflects the corresponding decrease in the deferred gain on retroactive reinsurance for favorable development on reserves covered under the LPT/ADC Agreement of $ 20,687 during the six months ended June 30, 2021.

The deferred gain on retroactive reinsurance represents the cumulative adverse development under the AmTrust Quota Share covered under the LPT/ADC Agreement at June 30, 2021 and December 31, 2020.

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.

9 unchanged sentences

The Master Agreement further provided that AII receive a ceding commission of 31 % of ceded written premiums.

On June 11, 2008, Maiden Reinsurance and AII amended the AmTrust Quota Share to add Retail Commercial Package Business to the Covered Business.

On June 11, 2008, Maiden Reinsurance and AII amended the AmTrust Quota Share to add Retail Commercial Package Business to the Covered Business (as defined in the AmTrust Quota Share).

AII receives a ceding commission of 34.375 % on Retail Commercial Package Business.

32 unchanged sentences

Thereafter, 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.

The table below shows the effect of both of these quota share arrangements with AmTrust on the Company's Condensed Consolidated Income Statements for the three months ended March 31, 2021 and 2020, respectively:

For the Three Months Ended March 31,

The table below shows the effect of both of these quota share arrangements with AmTrust on the Company's Condensed Consolidated Income Statements for the three and six months ended June 30, 2021 and 2020, respectively:

For the Three Months Ended June 30, For the Six Months Ended June 30,

2021 2020 2021 2020

Gross and net premiums written $ ( 1,757 ) $ ( 4,705 ) $ ( 4,219 ) $ ( 4,705 )

6 unchanged sentences

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.

Maiden Reinsurance 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.

This collateral can take 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.

Maiden Reinsurance has provided 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 which can include (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.

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.

Maiden Reinsurance satisfied its collateral requirements under the AmTrust Quota Share with AII as follows:

• by lending funds of $ 167,975 at March 31, 2021 and December 31, 2020 pursuant to a loan agreement entered into between those parties.

• by lending funds of $ 167,975 at June 30, 2021 and December 31, 2020 pursuant to a loan agreement entered into between those parties.

Advances under the loan are secured by promissory notes.

1 unchanged sentence

Interest is payable at a rate equivalent to the Federal Funds Effective Rate ("Fed Funds") plus 200 basis points per annum.

Interest income on the loan was $ 860 for the three months ended March 31, 2021 (2020 - $ 1,365 ) and the effective yield was 2.0 % for the period (2020 - 3.3 %).

Interest income on the loan was $ 866 and $ 1,726 for the three and six months ended June 30, 2021, respectively (2020 - $ 860 and $ 2,225 , respectively) and the effective yield was 2.1 % and 2.1 % for the same respective periods (2020 - 2.0 % and 2.6 %).

• on January 30, 2019, in connection with the termination of the reinsurance agreements described above, the Company and AmTrust amended the Loan Agreement between Maiden Reinsurance, AmTrust and AII, originally entered into on November 16, 2007, by extending the maturity date to January 1, 2025 and specifies that due to the termination of the AmTrust Quota Share, no further loans or advances may be made pursuant to the Loan Agreement;

6 unchanged sentences

AmTrust subsidiaries.

The amount of the collateral at March 31, 2021 was $ 493,363 (December 31, 2020 - $ 666,879 ) and the accrued interest was $ 2,454 (December 31, 2020 - $ 3,048 ).

The amount of the collateral at June 30, 2021 was $ 425,953 (December 31, 2020 - $ 666,879 ) and the accrued interest was $ 1,937 (December 31, 2020 - $ 3,048 ).

Please refer to "Note 4.

3 unchanged sentences

The annual interest rate was 2.65 % for the duration of 2020.

At March 31, 2021, the funds withheld balance was $ 575,000 (December 31, 2020 - $ 575,000 ) and the accrued interest was $ 2,552 (December 31, 2020 - $ 3,845 ).

The interest income on the funds withheld receivable was $ 2,552 for the three months ended March 31, 2021 (2020 - $ 3,800 ).

At June 30, 2021, the funds withheld balance was $ 575,000 (December 31, 2020 - $ 575,000 ) and the accrued interest was $ 2,580 (December 31, 2020 - $ 3,845 ).

The interest income on the funds withheld receivable was $ 2,580 and $ 5,132 for the three and six months ended June 30, 2021, respectively (2020 - $ 3,806 and $ 7,606 , respectively).

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.

22 unchanged sentences

Collateral has been provided to both AEL and AIU DAC under the European Hospital Liability Quota Share.

For AEL, the amount of the collateral held in reinsurance trust accounts at March 31, 2021 was $ 304,635 (December 31, 2020 - $ 318,063 ) and the accrued interest was $ 2,270 (December 31, 2020 - $ 2,283 ).

For AEL, the amount of the collateral held in reinsurance trust accounts at June 30, 2021 was $ 334,038 (December 31, 2020 - $ 318,063 ) and the accrued interest was $ 2,227 (December 31, 2020 - $ 2,283 ).

For AIU DAC, the Company utilizes funds withheld to satisfy its collateral requirements.

At March 31, 2021, the amount of funds withheld was $ 29,106 (December 31, 2020 - $ 28,093 ) and the accrued interest was $ 36 (December 31, 2020 - $ 318 ).

At June 30, 2021, the amount of funds withheld was $ 29,424 (December 31, 2020 - $ 28,093 ) and the accrued interest was $ 73 (December 31, 2020 - $ 318 ).

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 $ 37 for the three months ended March 31, 2021 (2020 - $ 71 ).

The interest income on the funds withheld receivable was $ 37 and $ 74 for the three and six months ended June 30, 2021 (2020 - $ 127 and $ 198 , respectively).

MAIDEN HOLDINGS, LTD.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

(in thousands of U.S.

dollars, except share and per share data)

Related Party Transactions (continued)

Brokerage Agreement

4 unchanged sentences

The brokerage agreement was terminated as of March 15, 2019.

Maiden Reinsurance recorded $ 69 of reinsurance brokerage expense for the three months ended March 31, 2021 (2020 - $ 234 ) and deferred reinsurance brokerage of $ 1,434 at March 31, 2021 (December 31, 2020 - $ 1,534 ) as a result of this agreement.

MAIDEN HOLDINGS, LTD.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

(in thousands of U.S.

dollars, except share and per share data)

Related Party Transactions (continued)

Maiden Reinsurance recorded $ 79 and $ 148 of reinsurance brokerage expense for the three and six months ended June 30, 2021, respectively (2020 - $ 119 and $ 353 , respectively) and deferred reinsurance brokerage of $ 1,333 at June 30, 2021 (December 31, 2020 - $ 1,534 ) as a result of this agreement.

Asset Management Agreement

2 unchanged sentences

The agreement may be terminated upon 30 days written notice by either party.

The Company recorded $ 272 of investment management fees for the three months ended March 31, 2021 (2020 - $ 400 ) under this agreement.

The Company recorded $ 222 and $ 494 of investment management fees for the three and six months ended June 30, 2021, respectively (2020 - $ 350 and $ 750 , respectively) under this agreement.

On September 9, 2020, Maiden Reinsurance, AmTrust and AIIM entered into a novation agreement, effective July 1, 2020, which provided for the novation of the asset management agreement, dated January 1, 2018 between Maiden Reinsurance and AIIM, and the release by Maiden Reinsurance of AIIM's obligations under the asset management agreement.

8 unchanged sentences

The fee for this agreement was an initial $ 100 retainer for re-domestication services paid in 2019 and $ 100 annually with reimbursement for reasonable out-of-pocket expenses incurred by Risk Services pursuant to the terms of the agreement.

The Company recorded $ 25 of fees for the three months ended March 31, 2021 and 2020, respectively.

The Company recorded $ 25 and $ 50 of fees for the three and six months ended June 30, 2021 and 2020, respectively.

683 Capital Partners, LP (“683 Partners”)

At March 31, 2021, 683 Partners and its affiliates own or control approximately 8.9 % of the outstanding common shares of the Company.

At June 30, 2021, 683 Partners and its affiliates own or control approximately 6.8 % of the outstanding common shares of the Company.

683 Partners and its affiliates are not related parties as defined in ASC 850:

Related Party Disclosures .

In addition, 683 Partners own $ 369 of the Company's 2016 Senior Notes and $ 663 of the Company's 2013 Senior Notes.

Limited Partnership Agreement with 683 Capital Management, LLC ("683 Capital")

2 unchanged sentences

Maiden Reinsurance may periodically and in its discretion increase the amount invested under the 683 LP Agreement, and subject to certain conditions, reduce the amount invested under the 683 LP Agreement.

Hedge fund investments of $ 31,125 were managed by 683 Capital under this agreement at March 31, 2021.

Commitments and Contingencies

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, 2020.

Hedge fund investments of $ 33,058 were managed by 683 Capital under this agreement at June 30, 2021.

MAIDEN HOLDINGS, LTD.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

(in thousands of U.S.

dollars, except share and per share data)

Commitments, Contingencies and Guarantees

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, 2020 except for the guarantees related to the indebtedness of others as disclosed in Note 11 (b) below.

a) Concentrations of Credit Risk

At March 31, 2021 and December 31, 2020, the Company’s assets where significant concentrations of credit risk may exist include investments, cash and cash equivalents, loan to related party, reinsurance recoverable on unpaid losses and funds withheld receivable.

At June 30, 2021 and December 31, 2020, the Company’s assets where significant concentrations of credit risk may exist include investments, cash and cash equivalents, loan to related party, reinsurance recoverable on unpaid losses and funds withheld receivable.

Please refer to " Note 8.

8 unchanged sentences

AmTrust has a financial strength/credit rating of A- (Excellent) from A.M.

Best at March 31, 2021.

Best at June 30, 2021.

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.

The Company believes these balances as at March 31, 2021 will be fully collectible.

MAIDEN HOLDINGS, LTD.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

(in thousands of U.S.

dollars, except share and per share data)

Commitments and Contingencies (continued)

b) Operating Lease Commitments

The Company believes these balances as at June 30, 2021 will be fully collectible.

b) Other Commitments and Financial Guarantees

The Company has remaining unfunded commitments on its other investments of $ 66,351 at June 30, 2021 (2020 - $ 63,313 ).

Please refer to "Note 4 (b) - Investments" for further details on unfunded commitments at June 30, 2021.

Certain of the Company's investments in limited partnerships are related to real estate joint ventures with interests in multi-property projects with varying strategies ranging from the development of properties to the ownership of income-producing properties.

In certain of these joint ventures, the Company has provided certain indemnities, guarantees and commitments to certain parties such that it may be required to make payments now or in the future.

Any loss for which the Company could be liable would be contingent on the default of a loan by the real estate joint venture entity for which the Company provided a financial guarantee to a lender.

While the Company has committed to aggregate limits as to the amount of guarantees it will provide as part of its limited partnerships, guarantees are only provided on an individual transaction basis and are subject to the terms and conditions of each transaction mutually agreed by the parties involved.

The Company is not bound to such guarantees without its express authorization.

As discussed above, at June 30, 2021, guarantees of $ 8,545 have been provided to lenders by the Company on behalf of the real estate joint venture, however, the likelihood of the Company incurring any losses pertaining to project level financing guarantees was determined to be remote.

Therefore, no liability has been accrued under ASC 450-20.

c) Operating Lease Commitments

The Company leases office spaces, housing, office equipment and company vehicles under various operating leases expiring in various years through 2024.

The Company entered into one new short-term subleasing arrangement through December 31, 2021 during the three months ended March 31, 2021.

The Company's leases are all currently classified as operating leases and none of them have non-lease components.

For operating leases that have an initial lease term of more than twelve months, and whose lease payments are above a certain threshold, the Company has recognized a lease liability and a right-of-use asset in the Company's Condensed Consolidated Balance Sheets at the present value of the remaining lease payments until expiration.

The Company terminated one of its office leasing arrangements and its subleasing arrangement during the three and six months ended June 30, 2021.

The Company's leases are currently classified as operating leases and none of them have non-lease components.

For operating leases that have an initial lease term of more than twelve months, and whose lease payments are above a certain threshold, the Company recognizes a lease liability and a right-of-use asset in the Condensed Consolidated Balance Sheets at the present value of the remaining lease payments until expiration.

As the lease contracts generally do not provide an implicit discount rate, the Company used the weighted-average discount rate of 10 %, representing its secured incremental borrowing rate, in calculating the present value of the lease liability.

The Company has made an accounting policy election not to include renewal, termination, or purchase options that are not reasonably certain of exercise when determining the term of the borrowing.

The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants.

The Company's weighted-average remaining lease term is approximately 1.6 years at March 31, 2021.

At March 31, 2021, the Company's future lease obligations of $ 807 (December 31, 2020 - $ 1,638 ) 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.

This amount has been recognized on the Condensed Consolidated Balance Sheets as a lease liability of $ 807 within accrued expenses and other liabilities with an equivalent amount for the right-of-use asset presented as part of other assets .

Under Topic 842, Leases , the Company continues to recognize the related leasing expense on a straight-line basis over the lease term in the Condensed Consolidated Statements of Income.

The Company's total lease expense for the three months ended March 31, 2021 was $ 242 (2020 - $ 410 ) recognized within net income consistent with the prior accounting treatment under Topic 840 .

The operating cash outflows from operating leases included in the measurement of the lease liability during the three months ended March 31, 2021 was $ 212 (2020 - $ 340 ).

The Company also recorded $ 126 of sublease income for the three months ended March 31, 2021.

At March 31, 2021, the scheduled maturity of the Company's operating lease liabilities are expected to be as follows:

March 31, 2021

Discount for present value ( 69 )

Total discounted operating lease liabilities $ 807

c) Legal Proceedings

This amount is recorded as a lease liability within accrued expenses and other liabilities with an equivalent amount for the right-of-use asset presented as part of other assets and is deemed insignificant at June 30, 2021.

The Company's weighted-average remaining lease term is approximately 3.0 years at June 30, 2021.

d) Legal Proceedings

Except as noted below, the Company is not a party to any material legal proceedings.

9 unchanged sentences

Secretary of Labor found no reasonable cause for Mr.

Turin’s claim and dismissed the complaint in its entirety.

MAIDEN HOLDINGS, LTD.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

(in thousands of U.S.

dollars, except share and per share data)

Commitments, Contingencies and Guarantees (continued)

claim and dismissed the complaint in its entirety.

Turin objected to the Secretary's findings and requested a hearing before an administrative law judge in the U.S.

10 unchanged sentences

The Company will continue to vigorously defend itself against this claim.

MAIDEN HOLDINGS, LTD.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

(in thousands of U.S.

dollars, except share and per share data)

Commitments and Contingencies (continued)

A putative class action complaint was filed against Maiden Holdings, Arturo M.

5 unchanged sentences

On September 11, 2020, a motion to dismiss was filed on behalf of all Defendants.

we cannot predict when the Court will issue a decision on the motion.

On August 6, 2021, the Court issued an order denying, in part, Defendants’ motion to dismiss, ordering Plaintiffs to file a shorter amended complaint no later than August 20, 2021, and permitting discovery to proceed on a limited basis.

We believe the claims are without merit and we intend to vigorously defend ourselves.

3 unchanged sentences

The following is a summary of the elements used in calculating basic and diluted earnings per common share:

For the Three Months Ended March 31,

For the Three Months Ended June 30, For the Six Months Ended June 30,

2021 2020 2021 2020

Net income $ 8,112 $ 9,212 $ 17,398 $ 30,073

6 unchanged sentences

Share options and restricted share units (2)

5,351 — 4,382 —

Adjusted weighted average number of common shares – diluted (2)

5 unchanged sentences

Share Compensation and Pension Plans" in the Notes to Consolidated Financial Statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2020 for the terms and conditions of securities that could potentially be dilutive in the future.

For the three months ended March 31, 2021, there were 3,949 potentially dilutive securities.

For the three and six months ended June 30, 2021, there were 5,351 and 4,382 potentially dilutive securities, respectively.

MAIDEN HOLDINGS, LTD.

13 unchanged sentences

federal tax liabilities.

Subsequent Event

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.

What changed 10-Q

Item 1. Financial Statements