What changed in this filing

/stocks — the workspaceLOADING

Item 1. Financial Statements

2021-11-09 compared with 2021-08-09 · 259 added, 240 removed, 1256 unchanged (28% of the section changed)

4 unchanged sentences

dollars, except share and per share data)

September 30,

2021 December 31,

10 unchanged sentences

Accrued investment income 7,445 11,240

Reinsurance balances receivable, net 2,372 5,777

Reinsurance balances receivable, net (includes $ 17,794 from related parties in 2021)

Reinsurance recoverable on unpaid losses 561,627 592,571

25 unchanged sentences

Additional paid-in capital 768,171 756,122

Accumulated other comprehensive income 5,723 23,857

Accumulated other comprehensive (loss) income ( 4,859 ) 23,857

Accumulated deficit ( 514,512 ) ( 615,837 )

10 unchanged sentences

dollars, except per share data)

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

For the Three Months Ended September 30, For the Nine Months Ended September 30,

2021 2020 2021 2020

11 unchanged sentences

7,477 12,686 24,596 44,959

Net realized gains on investment

849 8,875 8,950 19,913

Net realized and unrealized (losses) gains on investment ( 937 ) 4,287 8,013 24,200

Total other-than-temporary impairment losses

10 unchanged sentences

4,832 4,832 14,495 14,493

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

Foreign exchange and other (gains) losses ( 4,116 ) 6,536 ( 6,070 ) 634

Total expenses

24,193 38,244 64,678 112,035

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

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

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

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

(Loss) income before income taxes and interest in (loss) income of equity method investments ( 2,485 ) 2,333 8,983 32,403

income tax (benefit) expense ( 155 ) 17 ( 363 ) 14

Interest in (loss) income of equity method investments ( 810 ) ( 154 ) 4,912 ( 154 )

Net (loss) income ( 3,140 ) 2,162 14,258 32,235

Gain from repurchase of preference shares 6,004 — 87,168 —

7 unchanged sentences

(in thousands of U.S.

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

For the Three Months Ended September 30, For the Nine Months Ended September 30,

2021 2020 2021 2020

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

Net (loss) income $ ( 3,140 ) $ 2,162 $ 14,258 $ 32,235

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) gains on fixed maturity investments arising during period ( 10,539 ) 15,028 ( 27,864 ) 16,603

Net unrealized holdings losses on equity method investments arising during period ( 4,078 ) — ( 7,497 ) —

4 unchanged sentences

Other comprehensive (loss) income, after tax ( 10,582 ) 4,756 ( 28,716 ) ( 3,879 )

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

Comprehensive (loss) income $ ( 13,722 ) $ 6,918 $ ( 14,458 ) $ 28,356

See accompanying notes to the unaudited Condensed Consolidated Financial Statements.

2 unchanged sentences

(in thousands of U.S.

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

For the Three Months Ended September 30, For the Nine Months Ended September 30,

2021 2020 2021 2020

12 unchanged sentences

922 897 898 882

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

Issuance of common shares from vesting of stock based compensation 1 1 25 16

Ending balance

3 unchanged sentences

767,452 752,896 756,122 751,327

Exercise of options and issuance of common shares

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

Issuance of common shares from vesting of stock based compensation ( 1 ) ( 1 ) ( 25 ) ( 16 )

Share-based compensation expense

4 unchanged sentences

768,171 753,324 768,171 753,324

Accumulated other comprehensive income

Accumulated other comprehensive (loss) income

Beginning balance

9 unchanged sentences

Cash settlement of restricted shares granted — — ( 101 ) —

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

Net (loss) income ( 3,140 ) 2,162 14,258 32,235

Gain on repurchase of preference shares 6,004 — 87,168 —

14 unchanged sentences

(in thousands of U.S.

For the Six Months Ended June 30, 2021 2020

For the Nine Months Ended September 30, 2021 2020

Cash flows from operating activities

2 unchanged sentences

Depreciation, amortization and share-based compensation 7,798 6,318

Interest in income of equity method investments ( 5,722 ) —

Net realized gains on investment ( 8,950 ) ( 19,913 )

Interest in (income) loss of equity method investments ( 4,912 ) 154

Net realized and unrealized gains on investment ( 8,013 ) ( 24,200 )

Total other-than-temporary impairment losses — 2,468

Foreign exchange and other gains ( 1,954 ) ( 5,902 )

Foreign exchange and other (gains) losses ( 6,070 ) 634

Changes in assets – (increase) decrease:

24 unchanged sentences

Repurchase of preference shares ( 132,153 ) —

Change in other liabilities due to bank overdraft 5,764 —

Cash settlement of restricted shares granted ( 166 ) —

34 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 services company, Maiden Global Holdings Ltd.

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

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

16 unchanged sentences

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

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 Holdings North America, Ltd.

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 our wholly-owned subsidiary Maiden Holdings North America, Ltd.

("Maiden NA").

19 unchanged sentences

Recently Adopted Accounting Standards Updates

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

No new accounting standards have been recently adopted for the nine months ended September 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 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.

As of September 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.

18 unchanged sentences

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

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

Gross premiums written

10 unchanged sentences

( 1,583 ) ( 407 ) ( 1,990 )

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

Reconciliation to net income

Net investment income and realized gains on investment 8,127

Underwriting income (loss) $ 2,061 $ ( 5,710 ) ( 3,649 )

Reconciliation to net loss

Net investment income and net realized and unrealized losses on investment 6,540

Interest and amortization expenses

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

Foreign exchange and other gains, net 4,116

Other general and administrative expenses

Income tax benefit 155

Interest in income of equity method investments 2,775

Net income $ 8,112

Interest in loss of equity method investments ( 810 )

Net loss $ ( 3,140 )

Net loss and LAE ratio (1)

13 unchanged sentences

Segment Information (continued)

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

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

Gross premiums written

13 unchanged sentences

Reconciliation to net income

Net investment income and realized gains on investment 23,184

Net investment income and net realized and unrealized gains on investment 16,973

Total other-than-temporary impairment losses

Interest and amortization expenses

1 unchanged sentence

Other general and administrative expenses

Income tax benefit 18

Income tax expense ( 17 )

Interest in loss from equity method investments ( 154 )

Net income $ 2,162

14 unchanged sentences

Segment Information (continued)

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

For the Nine Months Ended September 30, 2021 Diversified Reinsurance AmTrust Reinsurance Total

Gross premiums written

11 unchanged sentences

( 6,190 ) ( 1,785 ) ( 7,975 )

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

Underwriting income $ 595 $ 5,782 6,377

Reconciliation to net income

Net investment income and realized gains on investment 26,069

Net investment income and net realized and unrealized gains on investment 32,609

Interest and amortization expenses

19 unchanged sentences

Segment Information (continued)

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

For the Nine Months Ended September 30, 2020 Diversified Reinsurance AmTrust Reinsurance Total

Gross premiums written

11 unchanged sentences

( 5,177 ) ( 1,941 ) ( 7,118 )

Underwriting loss

$ ( 1,075 ) $ ( 2,635 ) ( 3,710 )

Underwriting (loss) income $ ( 2,137 ) $ 1,829 ( 308 )

Reconciliation to net income

Net investment income and realized gains on investment 52,186

Net investment income and net realized and unrealized gains on investment 69,159

Total other-than-temporary impairment losses

Interest and amortization expenses

Foreign exchange and other gains, net

Foreign exchange and other losses, net ( 634 )

Other general and administrative expenses

Income tax benefit 3

Income tax expense ( 14 )

Interest in loss from equity method investments ( 154 )

Net income $ 32,235

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 June 30, 2021 and December 31, 2020:

June 30, 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 September 30, 2021 and December 31, 2020:

September 30, 2021 Diversified Reinsurance AmTrust Reinsurance Total

Total assets - reportable segments

12 unchanged sentences

Segment Information (continued)

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

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, 2021 and 2020:

For the Three Months Ended September 30, 2021 2020

Net premiums written

13 unchanged sentences

$ 6,953 $ 3,031

For the Six Months Ended June 30, 2021 2020

For the Nine Months Ended September 30, 2021 2020

Net premiums written Total Total

1 unchanged sentence

International $ 10,600 $ 27,627

Other — ( 36 )

Total Diversified Reinsurance 10,600 27,591

14 unchanged sentences

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

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, 2021 and 2020:

For the Three Months Ended September 30, 2021 2020

Net premiums earned

17 unchanged sentences

$ 15,030 100.0 % $ 24,305 100.0 %

For the Six Months Ended June 30, 2021 2020

For the Nine Months Ended September 30, 2021 2020

Net premiums earned Total % of Total Total % of Total

24 unchanged sentences

a) Fixed Maturities

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

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

September 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.

June 30, 2021 Amortized cost Fair value

September 30, 2021 Amortized cost Fair value

Due in one year or less

14 unchanged sentences

Less than 12 Months 12 Months or More Total

June 30, 2021 Fair

September 30, 2021 Fair

value Unrealized

15 unchanged sentences

Investments (continued)

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 .

At September 30, 2021, there were 55 securities in an unrealized loss position with a fair value of $ 214,960 and unrealized losses of $ 8,243 .

Of these securities, there were 14 securities that have been in an unrealized loss position for twelve months or greater with a fair value of $ 44,863 and unrealized losses of $ 3,349 .

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 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.

At September 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.

2 unchanged sentences

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 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

For the three and nine months ended September 30, 2020, the Company recognized $ 962 and $ 2,468 in OTTI charges in earnings on two and four fixed maturity securities, respectively.

There was no impairment recorded for the three and nine months ended September 30, 2021, respectively.

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

September 30, 2021 Amortized cost Fair value % of Total

treasury bonds

34 unchanged sentences

Other investments

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

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

September 30, 2021 December 31, 2020

Carrying value % of Total Carrying value % of Total

Private equity investments $ 27,544 31.2 % $ 23,294 34.8 %

Private credit lending investments 8,451 9.6 % 1,301 1.9 %

Investment in limited partnerships

13,957 15.8 % 3,044 4.5 %

Other investments 1,800 2.0 % 2,800 4.2 %

Other privately held investments $ 44,351 42.7 % $ 26,094 38.9 %

Private credit funds 15,149 14.6 % 1,301 1.9 %

Private equity funds 4,643 4.4 % 3,044 4.6 %

Total other investments at fair value 64,143 61.7 % 30,439 45.4 %

1 unchanged sentence

Total other investments $ 103,888 100.0 % $ 67,010 100.0 %

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.

The Company's investments in direct lending entities of $ 39,745 at September 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.

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

The Company's unfunded commitments on other investments held at September 30, 2021 and December 31, 2020 were:

September 30, 2021 December 31, 2020

Fair Value % of Total Fair Value % of Total

Private equity investments $ 10,076 15.2 % $ 9,580 15.2 %

Private credit lending investments 26,610 40.1 % 33,584 53.0 %

Private credit funds $ 30,191 45.4 % $ 33,584 53.0 %

Investments in direct lending entities 16,520 24.9 % 19,823 31.3 %

Investment in limited partnerships 9,842 14.8 % 326 0.5 %

Other privately held investments 10,463 15.8 % 9,580 15.2 %

Private equity funds 9,257 13.9 % 326 0.5 %

Total unfunded commitments on other investments $ 66,431 100.0 % $ 63,313 100.0 %

Equity Method Investments

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

The equity method investments include hedge fund investments, real estate investments and other investments.

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

September 30, 2021 December 31, 2020

Carrying Value % of Total Carrying Value % of Total

Hedge fund investments $ 31,221 41.6 % $ 29,435 73.8 %

Investment in limited partnerships 27,055 45.0 % 10,451 26.2 %

Real estate investments 42,551 56.7 % — — %

Other investments 1,278 1.7 % 10,451 26.2 %

Total equity method investments $ 75,050 100.0 % $ 39,886 100.0 %

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.

The equity method investments above include limited partnerships which are variable interests issued by variable interest entities ("VIEs").

The Company does not have the power to direct the activities that are most significant to the economic performance of these VIEs therefore the Company is not the primary beneficiary of these VIEs.

T he Company is deemed to have 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.

5 unchanged sentences

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.

However, certain of the Company's equity method investments 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 .

The Company's remaining unfunded commitments on equity method investments as at September 30, 2021 was $ 26,949 .

c) Net Investment Income

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,

Net investment income was derived from the following sources for the three and nine months ended September 30, 2021 and 2020, respectively:

For the Three Months Ended September 30, For the Nine Months Ended September 30,

2021 2020 2021 2020

9 unchanged sentences

$ 7,477 $ 12,686 $ 24,596 $ 44,959

d) Realized Gains (Losses) on Investment

d) Net Realized and Unrealized 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.

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

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

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

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

Fixed maturities

2 unchanged sentences

Other investments 396 ( 122 ) 274

Net realized gains (losses) on investment

$ 1,555 $ ( 706 ) $ 849

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

Net realized and unrealized gains (losses) on investment $ 2,286 $ ( 3,223 ) $ ( 937 )

For the Three Months Ended September 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

Net realized and unrealized gains on investment $ 4,287 $ — $ 4,287

For the Nine Months Ended September 30, 2021 Gross gains Gross losses Net

AFS fixed maturities

3 unchanged sentences

1,022 ( 147 ) 875

Net realized gains (losses) on investment

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

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

Net realized and unrealized gains (losses) on investment $ 12,116 $ ( 4,103 ) $ 8,013

For the Nine Months Ended September 30, 2020 Gross gains Gross losses Net

AFS fixed maturities

2 unchanged sentences

446 ( 184 ) 262

Net realized gains (losses) on investment

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

Net realized and unrealized gains (losses) on investment $ 24,385 $ ( 185 ) $ 24,200

MAIDEN HOLDINGS, LTD.

4 unchanged sentences

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 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,

The unrealized gains recognized in net income for the three and nine months ended September 30, 2021 and 2020 for investments still held at September 30, 2021 and 2020, respectively, were as follows:

For the Three Months Ended September 30, For the Nine Months Ended September 30,

2021 2020 2021 2020

2 unchanged sentences

Unrealized (losses) gains recognized for equity securities still held at reporting date $ ( 3,002 ) $ — $ 903 $ —

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

Proceeds from sales of fixed maturities were $ 126,282 and $ 332,636 for the three and nine months ended September 30, 2021, respectively (2020 - $ 71,857 and $ 477,358 , respectively).

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

September 30, 2021 December 31, 2020

Fixed maturities

11 unchanged sentences

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 June 30, 2021 and December 31, 2020:

June 30, 2021 December 31, 2020

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

September 30, 2021 December 31, 2020

Restricted cash – third party agreements $ 20,457 $ 20,547

9 unchanged sentences

627,226 954,988

Restricted investments – liability for investments purchased for related party agreements ( 36,215 ) —

Restricted investments – liability for investments purchased and other liabilities for related party agreements ( 14,335 ) —

Total restricted investments

2 unchanged sentences

$ 695,841 $ 1,080,055

MAIDEN HOLDINGS, LTD.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

(in thousands of U.S.

dollars, except share and per share data)

Fair Value of Financial Instruments

3 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.

29 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 June 30, 2021 and December 31, 2020.

government and U.S.

15 unchanged sentences

government and supranational bonds 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)

Asset-backed securities — These securities comprise commercial mortgage-backed securities ("CMBS") and collateralized loan obligations ("CLO") originated by a variety of financial institutions that on acquisition are rated BBB-/Baa3 or higher.

8 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.

2 unchanged sentences

Other investments — Includes unquoted investments comprised of the following investments:

• Private equity investments:

• Privately held investments:

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

These investments are also comprised of investments in insurtech and other insurance focused companies.

The fair value of these start-up insurance entities are determined using recent private market transactions where applicable and included in the Level 3 fair value hierarchy due to unobservable market data used for valuation.

• Private credit funds:

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

• Private equity funds:

These are comprised of 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.

The fair values are therefore measured using the NAV as a practical expedient.

• Other investments:

These investments are comprised of investments in insurtech and other insurance focused companies.

(b) Fair Value Hierarchy

The Company’s estimates of fair value for financial assets and financial liabilities are based on the framework established in ASC 820.

The framework is based on the inputs used in valuation and gives the highest priority to quoted prices in active markets and requires that observable inputs be used in the valuation methodology whenever available.

In determining the level of the hierarchy in which the estimate is disclosed, the highest priority is given to unadjusted quoted prices in active trading markets and the lowest priority to unobservable inputs that reflect significant market assumptions.

MAIDEN HOLDINGS, LTD.

2 unchanged sentences

dollars, except share and per share data)

Fair Value Measurements (continued)

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

Fair Value of Financial Instruments (continued)

(b) Fair Value Hierarchy

The Company’s estimates of fair value for financial assets and financial liabilities are based on the framework established in ASC 820.

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

September 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

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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 June 30, 2021 and December 31, 2020, respectively.

The Pricing Service was utilized to estimate fair value measurements for 99.2 % and 99.1 % of our fixed maturities at September 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 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.

At September 30, 2021 and December 31, 2020, approximately 0.8 % and 0.9 %, respectively, of our fixed maturities were valued using the market approach.

At September 30, 2021, one security or $ 6,444 (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 September 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.

MAIDEN HOLDINGS, LTD.

2 unchanged sentences

dollars, except share and per share data)

Fair Value Measurements (continued)

Fair Value of Financial Instruments (continued)

During the nine months ended September 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 its initial public offering.

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

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.

At September 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 stock 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 June 30, 2021:

Fair Value Valuation Technique Unobservable Inputs Range

Private equity investments $ 27,544 Quarterly financial statements Estimated maturity dates 1.0 years to 3.0 years

Other including start-ups 1,800 Recent market transactions Liquidity discount rates

Other privately held investments $ 27,544 Quarterly financial statements Estimated maturity dates 1.0 years to 3.0 years

Other privately held investments 1,800 Recent market transactions Liquidity discount rates

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 and six months ended June 30, 2021 and 2020.

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,

For the Three Months Ended September 30, For the Nine Months Ended September 30,

2021 2020 2021 2020

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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 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.

At September 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.

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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

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

September 30, 2021 December 31, 2020

Carrying Value Fair Value Carrying Value Fair Value

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a) Common Shares

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.

At September 30, 2021, the aggregate authorized share capital of the Company is 150,000,000 shares from which 92,278,828 common shares were issued, of which 86,443,757 common shares are outstanding, and 18,600,000 preference shares were issued, all of which are outstanding.

The remaining 39,121,172 shares are undesignated at September 30, 2021.

Excluding the preference shares held by Maiden Reinsurance, a total of 6,696,732 preference shares are held by non-affiliates.

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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

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 nine months ended September 30, 2021:

For the Three Months Ended September 30, 2021 For the Nine Months Ended September 30, 2021

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

5 unchanged sentences

Gain on purchase $ 6,004 $ 87,168

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

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

Series A Series C Series D Total

4 unchanged sentences

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

Shares purchased by Maiden Reinsurance during the three months ended September 30, 2021 135,353 241,466 181,817 558,636

Total shares held by Maiden Reinsurance - September 30, 2021

4,064,311 4,120,710 3,718,247 11,903,268

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

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

1,935,689 2,479,290 2,281,753 6,696,732

Percentage held by Maiden Reinsurance - June 30, 2021

Percentage held by Maiden Reinsurance - September 30, 2021

67.7 % 62.4 % 62.0 % 64.0 %

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

The Company has a remaining authorization of $ 17,847 for preference share repurchases at September 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 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 ).

The Company has continued to repurchase preference shares subsequent to September 30, 2021 pursuant to a Rule 10b5-1 plan.

Please see " Note 14.

Subsequent Events" for details.

MAIDEN HOLDINGS, LTD.

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Shareholders' Equity (continued)

c) Treasury Shares

During the three months ended September 30, 2021, the Company repurchased a total of 21,509 common shares at an average price per share of $ 3.43 from employees, which represent withholding in respect of tax obligations on the vesting of both non-performance-based and discretionary performance-based restricted shares.

During the nine months ended September 30, 2021, the Company repurchased a total of 821,057 (2020 - 834 ) common shares at an average price per share of $ 2.96 (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 September 30, 2020.

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 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.

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

No repurchases were made during the three and nine months ended September 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 June 30, 2021 Change in net unrealized gains on investment Foreign currency translation Total

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

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

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

Other comprehensive (loss) income before reclassifications ( 14,611 ) 6,036 ( 8,575 )

Amounts reclassified from AOCI to net income, net of tax ( 2,007 ) — ( 2,007 )

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

Net current period other comprehensive (loss) income ( 16,618 ) 6,036 ( 10,582 )

Ending balance, Maiden shareholders $ 7,014 $ ( 11,873 ) $ ( 4,859 )

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

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

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

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Ending balance, Maiden shareholders $ 28,938 $ ( 14,981 ) $ 13,957

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

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

Beginning balance

6 unchanged sentences

$ 7,014 $ ( 11,873 ) $ ( 4,859 )

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

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

Beginning balance

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Amounts reclassified from AOCI to net income, net of tax ( 9,643 ) — ( 9,643 )

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

Net current period other comprehensive income (loss) 6,942 ( 10,821 ) ( 3,879 )

Ending balance, Maiden shareholders

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Long-Term Debt

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").

At September 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 June 30, 2021 and December 31, 2020:

June 30, 2021 2016 Senior Notes 2013 Senior Notes Total

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

September 30, 2021 2016 Senior Notes 2013 Senior Notes Total

Principal amount

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Effective interest rate 7.07 % 8.04 %

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 interest expense incurred on the Senior Notes for the three and nine months ended September 30, 2021 was $ 4,776 and $ 14,329 , respectively, (2020 - $ 4,777 and $ 14,330 , respectively), of which $ 1,342 was accrued at both September 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 and six months ended June 30, 2021 was $ 56 and $ 110 , respectively (2020 - $ 54 and $ 108 , respectively).

The amortization expense for the three and nine months ended September 30, 2021 was $ 56 and $ 166 , respectively (2020 - $ 55 and $ 163 , 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.

11 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 six months ended June 30, 2021 and 2020 was as follows:

For the Six Months Ended June 30, 2021 2020

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

For the Nine Months Ended September 30, 2021 2020

Premiums written

13 unchanged sentences

$ 7,546 $ 41,159

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.

The Company's reinsurance recoverable on unpaid losses balance as at September 30, 2021 was $ 561,627 (December 31, 2020 - $ 592,571 ) presented in the Condensed Consolidated Balance Sheets.

At September 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 $ 62,541 at June 30, 2021 (December 31, 2020 - $ 67,972 ).

The reinsurance recoverable on unpaid losses due from Cavello under this retrocession agreement was $ 62,813 at September 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 .

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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 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).

As of September 30, 2021, the reinsurance recoverable on unpaid losses under the retroactive reinsurance agreement was $ 495,645 while the deferred gain liability was $ 50,645 (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.

2 unchanged sentences

Related Party Transactions".

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

As of September 30, 2021, the amount of collateral required was $ 403,627 .

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 June 30, 2021.

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

MAIDEN HOLDINGS, LTD.

16 unchanged sentences

The reserve for loss and LAE consists of:

June 30, 2021 December 31, 2020

September 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 Six Months Ended June 30, 2021 2020

For the Nine Months Ended September 30, 2021 2020

Gross loss and LAE reserves, January 1

7 unchanged sentences

( 23,713 ) ( 7,829 )

( 2,968 ) 32,094

Net paid losses related to:

3 unchanged sentences

Retroactive reinsurance adjustment

24,296 32,955

Effect of foreign exchange rate movements

( 21,332 ) 11,914

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

Net loss and LAE reserves, September 30 1,005,899 1,377,396

Reinsurance recoverable on unpaid losses, September 30 561,627 597,677

Gross loss and LAE reserves, September 30 $ 1,567,526 $ 1,975,073

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 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.

During the three and nine months ended September 30, 2021, the Company recognized net favorable prior year loss development of $ 5,352 and $ 23,713 , respectively (2020 - favorable $ 7,236 and $ 7,829 , respectively).

In the Diversified Reinsurance segment, net favorable prior year loss development was $ 1,676 and $ 2,613 , respectively, for the three and nine months ended September 30, 2021 (2020 - adverse $ 483 and $ 312 , respectively).

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

The adverse prior year loss development for the three and nine months ended September 30, 2020 was primarily due to adverse reserve development in European Capital Solutions.

In the AmTrust Reinsurance segment, the net favorable prior year loss development was $ 3,676 and $ 21,100 , respectively, for the three and nine months ended September 30, 2021 (2020 - favorable $ 7,719 and $ 8,141 , respectively).

The net favorable prior year loss development for the three and nine months ended September 30, 2021 was primarily due to favorable prior year

MAIDEN HOLDINGS, LTD.

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Reserve for Loss and Loss Adjustment Expenses (continued)

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.

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 nine months ended September 30, 2020 was primarily due to favorable development in Workers Compensation partly offset by adverse development within Commercial Auto and General Liability programs.

Retroactive reinsurance adjustment of $ 24,296 represents the decrease in reinsurance recoverable on unpaid losses under the LPT/ADC Agreement with Cavello that was recognized in the nine months ended September 30, 2021 (2020 - $ 32,955 ) 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 $ 24,296 during the nine months ended September 30, 2021 (2020 - $ 9,250 ).

This adjustment also includes the Workers Compensation commuted losses of $ 23,705 during the nine months ended September 30, 2020.

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, 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.

44 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 and six months ended June 30, 2021 and 2020, respectively:

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

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 nine months ended September 30, 2021 and 2020, respectively:

For the Three Months Ended September 30, For the Nine Months Ended September 30,

2021 2020 2021 2020

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

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

• by lending funds of $ 167,975 at September 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 $ 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 %).

Interest income on the loan was $ 885 and $ 2,611 for the three and nine months ended September 30, 2021, respectively (2020 - $ 886 and $ 3,111 , respectively) and the effective yield was 2.1 % and 2.1 % for the same respective periods (2020 - 2.1 % and 2.5 %, respectively).

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

The amount of the collateral at September 30, 2021 was $ 328,891 (December 31, 2020 - $ 666,879 ) and the accrued interest was $ 1,893 (December 31, 2020 - $ 3,048 ).

Please refer to "Note 4.

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

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).

At September 30, 2021, the funds withheld balance was $ 575,000 (December 31, 2020 - $ 575,000 ) and the accrued interest was $ 2,609 (December 31, 2020 - $ 3,845 ).

The interest income on the funds withheld receivable was $ 2,609 and $ 7,741 for the three and nine months ended September 30, 2021, respectively (2020 - $ 3,845 and $ 11,451 , 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 June 30, 2021 was $ 334,038 (December 31, 2020 - $ 318,063 ) and the accrued interest was $ 2,227 (December 31, 2020 - $ 2,283 ).

For AEL, the amount of the collateral held in reinsurance trust accounts at September 30, 2021 was $ 286,118 (December 31, 2020 - $ 318,063 ) and the accrued interest was $ 1,577 (December 31, 2020 - $ 2,283 ).

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

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 ).

At September 30, 2021, the amount of funds withheld was $ 28,734 (December 31, 2020 - $ 28,093 ) and the accrued interest was $ 107 (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 and $ 74 for the three and six months ended June 30, 2021 (2020 - $ 127 and $ 198 , respectively).

The interest income on the funds withheld receivable was $ 37 and $ 111 for the three and nine months ended September 30, 2021, respectively (2020 - $ 64 and $ 262 , respectively).

MAIDEN HOLDINGS, LTD.

9 unchanged sentences

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

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.

Maiden Reinsurance recorded $ 94 and $ 242 of reinsurance brokerage expense for the three and nine months ended September 30, 2021, respectively (2020 - $ 162 and $ 515 , respectively) and deferred reinsurance brokerage of $ 1,253 at September 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 $ 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.

The Company recorded $ 196 and $ 690 of investment management fees for the three and nine months ended September 30, 2021, respectively (2020 - $ 321 and $ 1,071 , 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.

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

The Company recorded $ 25 and $ 75 of fees for the three and nine months ended September 30, 2021 and 2020, respectively.

683 Capital Partners, LP (“683 Partners”)

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

At September 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:

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

Hedge fund investments of $ 31,221 were managed by 683 Capital under this agreement at September 30, 2021 (December 31, 2020 - $ 29,435 ).

MAIDEN HOLDINGS, LTD.

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a) Concentrations of Credit Risk

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.

At September 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.

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Provisions are made for amounts considered potentially uncollectible.

Letters of credit are provided by its reinsurers for material amounts recoverable as discussed in " Note 8 — Reinsurance ".

Letters of credit are provided by its reinsurers for material amounts recoverable as discussed in " Note 8.

Reinsurance ".

The Company manages the concentration of credit risk in its investment portfolio through issuer and sector exposure limitations.

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

Best at June 30, 2021.

Best at September 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 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.

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

b) Investment Commitments and Related Financial Guarantees

The Company had unfunded commitments on other investments of $ 101,431 at September 30, 2021 (2020 - $ 63,313 ).

Please refer to "Note 4 (b) - Investments" for details on unfunded commitments for other investments held at September 30, 2021.

The remaining unfunded commitments on other investments at September 30, 2021 includes commitments for a private credit fund investment and a private equity fund investment for which the Company had agreements to fund at September 30, 2021.

The Company had unfunded commitments on equity method investments of $ 26,949 at September 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.

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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.

As discussed above, at September 30, 2021, guarantees of $ 33,191 have been provided to lenders by the Company on behalf of real estate joint ventures, 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.

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

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 terminated one of its office leasing arrangements and its subleasing arrangement during the nine months ended September 30, 2021.

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

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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.

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.

The Company's weighted-average remaining lease term is approximately 2.7 years at September 30, 2021.

d) Legal Proceedings

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

From time to time, the Company is subject to routine legal proceedings, including arbitrations, arising in the ordinary course of business.

From time to time, the Company is subject to routine legal proceedings, including arbitration, arising in the ordinary course of business.

These legal proceedings generally relate to claims asserted by or against the Company in the ordinary course of insurance or reinsurance operations.

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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.

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.

Secretary of Labor found no reasonable cause for Mr.

Turin alleged that he was terminated for raising concerns

MAIDEN HOLDINGS, LTD.

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Commitments, Contingencies and Guarantees (continued)

claim and dismissed the complaint in its entirety.

regarding corporate governance with respect to the negotiation of the terms of the Trust Preferred Securities Offering.

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.

Secretary of Labor found no reasonable cause for Mr.

Turin’s 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.

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The administrative hearing began in September 2014 and concluded in November 2018.

On September 2, 2021, Administrative Law Judge Theresa C.

Timlin of the U.S.

Department of Labor issued a decision and order which denied Mr.

Turin’s complaint in full.

On September 16, 2021, Mr.

Turin filed a petition for review of the Administrative Law Judge's decision with the Administrative Review Board in the U.S.

Department of Labor.

The Company believes that it had good and sufficient reasons for terminating Mr.

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

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

For the Three Months Ended September 30, For the Nine Months Ended September 30,

2021 2020 2021 2020

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

Net (loss) income $ ( 3,140 ) $ 2,162 $ 14,258 $ 32,235

Gain from repurchase of preference shares - Series A, C and D 6,004 — 87,168 —

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

For the three and nine months ended September 30, 2021, there were 4,452 and 4,406 potentially dilutive securities, respectively.

MAIDEN HOLDINGS, LTD.

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federal tax liabilities.

Subsequent Events

In September 2021, the Company authorized the open market repurchase of its outstanding preference shares in accordance with a written plan adopted pursuant to Rule 10b5-1 of the Securities Exchange Act of 1934.

The Company intends to finance these repurchases using its available unrestricted cash.

Subsequent to September 30, 2021, under the Rule 10b5-1 plan, the Company repurchased via the open market (i) 29,502 shares of the Company's 7.125 % Non-Cumulative Preference Shares Series C at an average price of $ 12.33 per share, and (ii) 14,637 shares o f the Company's 6.7 % Non-Cumulative Preference Shares Series D at an average price of $ 12.33 per share for a total amount of $ 544 .

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

These purchases will result in a gain on purchase of approximately $ 522 in the fourth quarter of 2021.

The Company has a remaining authorization of $ 17,303 for preference share repurchases.

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