What changed in this filing

/stocks — the workspaceLOADING

Item 1. Financial Statements

2022-05-10 compared with 2021-11-09 · 312 added, 556 removed, 959 unchanged (48% of the section changed)

4 unchanged sentences

dollars, except share and per share data)

September 30,

2022 December 31,

3 unchanged sentences

$ 471,230 $ 597,145

Equity securities, at fair value (cost 2021 - $ 1,000 )

Equity securities, at fair value 48,932 44,062

Equity method investments 93,317 83,742

4 unchanged sentences

Accrued investment income 5,282 5,695

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

Reinsurance balances receivable, net (includes $ 17,006 and $ 17,471 from related parties in 2022 and 2021, respectively)

18,714 19,507

Reinsurance recoverable on unpaid losses 558,262 562,845

11 unchanged sentences

Deferred gain on retroactive reinsurance 52,805 48,960

Liability for securities purchased 15,886 —

Accrued expenses and other liabilities (includes $ 49,316 and $ 29,408 from related parties in 2022 and 2021, respectively)

11 unchanged sentences

Additional paid-in capital 770,910 768,650

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

Accumulated other comprehensive loss ( 24,782 ) ( 12,215 )

Accumulated deficit ( 496,701 ) ( 498,295 )

10 unchanged sentences

dollars, except per share data)

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

2021 2020 2021 2020

For the Three Months Ended March 31,

Gross premiums written

5 unchanged sentences

Net premiums earned

15,030 24,305 40,106 76,828

Other insurance revenue

138 261 946 919

Net investment income

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

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

Total other-than-temporary impairment losses

— ( 962 ) — ( 2,468 )

Net realized and unrealized gains on investment 2,309 8,101

Total revenues

3 unchanged sentences

Commission and other acquisition expenses

6,313 9,651 19,154 29,778

General and administrative expenses

1 unchanged sentence

Interest and amortization expenses

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

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

Foreign exchange and other gains ( 3,949 ) ( 3,542 )

Total expenses

12,014 23,587

(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 )

(Loss) income before income taxes and interest in income of equity method investments ( 1,965 ) 6,388

income tax expense 1,255 49

Interest in income of equity method investments 1,271 2,947

Net (loss) income ( 1,949 ) 9,286

8 unchanged sentences

(in thousands of U.S.

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

2021 2020 2021 2020

For the Three Months Ended March 31,

Net (loss) income $ ( 1,949 ) $ 9,286

Other comprehensive (loss) income

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 ) —

Other comprehensive loss

Net unrealized holdings losses on fixed maturity investments arising during period ( 17,464 ) ( 19,531 )

Net unrealized holdings gains (losses) on equity method investments arising during period 4,414 ( 1,012 )

Adjustment for reclassification of net realized gains recognized in net income ( 5,238 ) ( 4,246 )

Foreign currency translation adjustment 5,592 10,146

Other comprehensive (loss) income, before tax ( 10,588 ) 4,788 ( 28,766 ) ( 3,861 )

Income tax benefit (expense) related to components of other comprehensive (loss) income 6 ( 32 ) 50 ( 18 )

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

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

Other comprehensive loss, before tax ( 12,696 ) ( 14,643 )

Income tax benefit related to components of other comprehensive loss 129 37

Other comprehensive loss, after tax ( 12,567 ) ( 14,606 )

Comprehensive loss $ ( 14,516 ) $ ( 5,320 )

See accompanying notes to the unaudited Condensed Consolidated Financial Statements.

2 unchanged sentences

(in thousands of U.S.

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

2021 2020 2021 2020

For the Three Months Ended March 31,

Preference shares - Series A, C and D

10 unchanged sentences

Beginning balance

922 897 898 882

Issuance of common shares from vesting of stock based compensation 10 22

Ending balance

923 898 923 898

Additional paid-in capital

3 unchanged sentences

Share-based compensation expense

253 429 4,568 2,013

Repurchase of Preference Shares 230 5,519

2 unchanged sentences

770,910 765,587

Accumulated other comprehensive (loss) income

Accumulated other comprehensive (deficit) income

Beginning balance

( 12,215 ) 23,857

Change in net unrealized (losses) gains on investment ( 16,618 ) 11,754 ( 42,343 ) 6,942

Change in net unrealized losses on investment ( 18,159 ) ( 24,752 )

Foreign currency translation adjustment

6,036 ( 6,998 ) 13,627 ( 10,821 )

Ending balance

21 unchanged sentences

(in thousands of U.S.

For the Nine Months Ended September 30, 2021 2020

For the Three Months Ended March 31, 2022 2021

Cash flows from operating activities

Net income $ 14,258 $ 32,235

Net (loss) income $ ( 1,949 ) $ 9,286

Adjustments to reconcile net income to net cash flows from operating activities:

Depreciation, amortization and share-based compensation 2,075 5,003

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

Interest in income of equity method investments ( 1,271 ) ( 2,947 )

Net realized and unrealized gains on investment ( 2,309 ) ( 8,101 )

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

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

Foreign exchange and other gains ( 3,949 ) ( 3,542 )

Changes in assets – (increase) decrease:

8 unchanged sentences

Unearned premiums ( 11,452 ) ( 15,188 )

Deferred gain on retroactive reinsurance 5,184 —

Accrued expenses and other liabilities 20,465 ( 21,886 )

4 unchanged sentences

Purchases of equity method investments ( 27,979 ) ( 281 )

Purchases of equity securities ( 5,363 ) ( 8,083 )

Proceeds from sales of fixed maturities 101,604 153,816

2 unchanged sentences

Proceeds from sale and redemption of equity method investments 24,090 1,917

Distributions from equity securities 441 —

Proceeds from sale and redemption of equity securities — 441

Others, net ( 28 ) ( 6 )

3 unchanged sentences

Repurchase of preference shares ( 3,099 ) ( 97,393 )

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

Cash settlement of restricted shares granted — ( 166 )

1 unchanged sentence

Effect of exchange rate changes on foreign currency cash, restricted cash and equivalents ( 355 ) ( 1,106 )

Net (decrease) increase in cash, restricted cash and cash equivalents ( 84,865 ) 82,617

Net increase (decrease) in cash, restricted cash and cash equivalents 5,799 ( 4,672 )

Cash, restricted cash and cash equivalents, beginning of period 66,087 135,826

26 unchanged sentences

The effect of these reclassifications had no impact on previously reported shareholders' equity or net income.

As a result of a series of strategic actions the Company has taken in recent years as discussed below, we create shareholder value by actively managing and allocating our assets and capital, including through ownership and management of businesses and assets mostly in the insurance and related financial services industries where we can leverage our deep knowledge of those markets.

We also provide a full range of legacy services to small insurance companies, particularly those in run-off or with blocks of reserves that are no longer core, working with clients to develop and implement finality solutions including acquiring entire companies.

We expect our legacy solutions business to contribute to our active asset and capital management strategies.

Maiden creates shareholder value by actively managing and allocating our assets and capital, including through ownership and management of businesses and assets primarily in the insurance and related financial services industries where we can leverage our deep knowledge of those markets.

We are currently underwriting reinsurance risks on a retroactive basis through our indirect wholly owned subsidiary Genesis Legacy Solutions ("GLS") which provides a full range of legacy services to small insurance companies, particularly those in run-off or with blocks of reserves that are no longer core.

GLS works with clients to develop and implement finality solutions including acquiring entire companies that enable our clients to meet their capital and risk management objectives.

We expect this legacy solutions business to contribute to our active asset and capital management strategies.

The Company does not presently underwrite prospective reinsurance risks.

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.

4 unchanged sentences

(“Maiden Reinsurance”).

The Company is not actively underwriting reinsurance business but has some historic reinsurance programs underwritten by Maiden Reinsurance which are in run-off.

The Company continues to run-off the liabilities associated with AmTrust Financial Services, Inc.

("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 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 the State of Vermont in the U.S.

and ceased active reinsurance underwriting.

These transactions can be found in Part II of our Annual Report on Form 10-K for the year ended December 31, 2020 that was filed with the SEC on March 15, 2021 and are more fully described (as applicable) in "Note 8 - Reinsurance" and "Note 10 - Related Party Transactions" in these financial statements.

Please see the Company's audited Consolidated Financial Statements, and related notes thereto, included in the Company's Annual Report on Form 10-K for the year ended December 31, 2020 for further details on the above transactions.

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 U.S., 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 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.

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").

Maiden NA now owns 100 % of Maiden Reinsurance in the aggregate.

MAIDEN HOLDINGS, LTD.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

(in thousands of U.S.

dollars, except share and per share data)

Basis of Presentation (continued)

COVID-19 Pandemic

The continuing COVID-19 global pandemic has caused significant disruption to the economy and financial markets globally, and the full extent of the potential impacts of COVID-19 are not yet known.

Circumstances caused by the COVID-19 pandemic are complex, uncertain and rapidly evolving.

Our results of operations, financial condition, and liquidity and capital resources may have been adversely impacted by the COVID-19 pandemic, and the future impact of the pandemic on our financial condition or results of operations is difficult to predict.

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

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.

Unanticipated issues relating to claims and coverage may emerge, which could adversely affect our business by increasing the scope of coverage beyond our intent and/or increasing the frequency and severity of claims.

The Company's investment portfolio may be adversely impacted by unfavorable market conditions caused by the COVID-19 pandemic, and the Company and its reinsurance subsidiaries may need additional capital to maintain compliance with regulatory capital requirements and/or be required to post additional collateral under existing reinsurance arrangements, which could reduce our liquidity.

In addition, the Company may experience continued volatility in its results of operations which could negatively impact its financial condition and create a reduction in the amount of available distribution or dividend capacity from its regulated reinsurance subsidiaries, which would also reduce liquidity.

We also have various historic reinsurance programs underwritten by Maiden Reinsurance which are in run-off, including the liabilities associated with AmTrust Financial Services, Inc.

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

Related Party Transactions" .

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

Reinsurance ".

Genesis Legacy Solutions

Effective October 1, 2021, GLS completed its first transaction, a loss portfolio transfer transaction which includes an adverse development cover and GLS continues to develop additional opportunities consistent with its business plan.

This should further enhance our ability to pursue the asset and capital management pillars of our business strategy.

GLS and its subsidiaries have completed additional transactions in the first quarter of 2022, and as of March 31, 2022, GLS and its subsidiaries have insurance related liabilities totaling $ 37,120 which included total reserves of $ 29,175 and deferred gain on retroactive reinsurance of $ 7,945 .

Significant Accounting Policies

There have been no material changes to the significant accounting policies as described in the Company's Annual Report on Form 10-K for the year ended December 31, 2020 except for the following:

Recently Adopted Accounting Standards Updates

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

Recently Issued Accounting Standards Not Yet Adopted

Accounting for Measurement of Credit Losses on Financial Instruments

In June 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-13 "Financial Instruments:

Credit Losses (Topic 326)" replacing the "incurred loss" impairment methodology with an approach based on "expected losses" to estimate credit losses on certain types of financial instruments and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates.

The guidance requires financial assets to be presented at the net amount expected to be collected.

The allowance for credit losses is a valuation account that is deducted from the cost of the financial asset to present the net carrying value at the amount expected to be collected on the financial asset.

ASU 2016-13 also modified the accounting for available-for-sale ("AFS") debt securities, which must be individually assessed for credit losses when fair value is less than the amortized cost basis, in accordance with Subtopic 326-30, Financial Instruments:

Credit Losses Available-for-Sale Debt Securities .

Credit losses relating to AFS debt securities will be recorded through an allowance for credit losses rather than under the current other-than-temporarily impaired ("OTTI") methodology.

In April 2019, the FASB issued ASU 2019-04 for targeted improvements related to ASU 2016-13 which clarify that an entity should include all expected recoveries in its estimate of the allowance for credit losses.

In addition, for collateral dependent financial assets, the amendments mandate that an allowance for credit losses that is added to the amortized cost basis of the financial asset should not exceed amounts previously written off.

It also clarifies FASB’s intent to include all reinsurance recoverables within the scope of Topic 944 to be within the scope of Subtopic 326-20 , regardless of the measurement basis of those recoverables.

The Company's reinsurance recoverable on unpaid losses is currently the most significant financial asset within the scope of ASU 2016-13.

The guidance is effective for public business entities, excluding entities eligible to be smaller reporting companies ("SRCs") as defined by the SEC, for annual periods beginning after December 15, 2019, and interim periods therein.

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 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.

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

There have been no material changes to the significant accounting policies as described in the Company's Annual Report on Form 10-K for the year ended December 31, 2021.

MAIDEN HOLDINGS, LTD.

6 unchanged sentences

Our Diversified Reinsurance segment consists of a portfolio of predominantly property and casualty reinsurance business focusing on regional and specialty property and casualty insurance companies located primarily in Europe.

This segment also includes transactions entered into by GLS which was formed in November 2020 as described in " Note 1.

Basis of Presentation.

Our AmTrust Reinsurance segment includes all business ceded to Maiden Reinsurance by AmTrust, primarily the quota share reinsurance agreement (“AmTrust Quota Share”) between Maiden Reinsurance and AmTrust’s wholly owned subsidiary, AmTrust International Insurance, Ltd.

8 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 September 30, 2021 Diversified Reinsurance AmTrust Reinsurance Total

For the Three Months Ended March 31, 2022 Diversified Reinsurance AmTrust Reinsurance Total

Gross premiums written

12 unchanged sentences

Reconciliation to net loss

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

Net investment income and net realized and unrealized investment gains 8,876

Interest and amortization expenses

1 unchanged sentence

Other general and administrative expenses

Income tax benefit 155

Interest in loss of equity method investments ( 810 )

Income tax expense ( 1,255 )

Interest in income of equity method investments 1,271

Net loss $ ( 1,949 )

Net loss and LAE ratio (1)

7.2 % 132.6 % 69.3 %

Commission and other acquisition expense ratio (2)

45.2 % 38.0 % 41.6 %

General and administrative expense ratio (3)

20.7 % 5.4 % 43.9 %

Expense ratio (4)

65.9 % 43.4 % 85.5 %

Combined ratio (5)

73.1 % 176.0 % 154.8 %

MAIDEN HOLDINGS, LTD.

3 unchanged sentences

Segment Information (continued)

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

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

Gross premiums written

13 unchanged sentences

Reconciliation to net income

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

Total other-than-temporary impairment losses

Interest and amortization expenses

Foreign exchange and other losses, net ( 6,536 )

Other general and administrative expenses

Income tax expense ( 17 )

Interest in loss from equity method investments ( 154 )

Net income $ 2,162

Net loss and LAE ratio (1)

57.2 % 18.8 % 36.9 %

Commission and other acquisition expense ratio (2)

36.3 % 42.0 % 39.3 %

General and administrative expense ratio (3)

15.7 % 4.8 % 33.2 %

Expense ratio (4)

52.0 % 46.8 % 72.5 %

Combined ratio (5)

109.2 % 65.6 % 109.4 %

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

Gross premiums written

$ 10,947 $ ( 3,082 ) $ 7,865

Net premiums written

$ 10,600 $ ( 3,082 ) $ 7,518

Net premiums earned

$ 20,723 $ 19,383 $ 40,106

Other insurance revenue

Net loss and LAE

( 3,216 ) ( 4,330 ) ( 7,546 )

Commission and other acquisition expenses

( 11,668 ) ( 7,486 ) ( 19,154 )

General and administrative expenses

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

Underwriting income $ 595 $ 5,782 6,377

Reconciliation to net income

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

Net investment income and net realized and unrealized investment gains 17,942

Interest and amortization expenses

1 unchanged sentence

Other general and administrative expenses

Income tax benefit 363

Interest in income from equity method investments 4,912

Net income $ 14,258

Net loss and LAE ratio (1)

14.8 % 22.3 % 18.4 %

Commission and other acquisition expense ratio (2)

53.9 % 38.6 % 46.6 %

General and administrative expense ratio (3)

28.6 % 9.2 % 72.0 %

Expense ratio (4)

82.5 % 47.8 % 118.6 %

Combined ratio (5)

97.3 % 70.1 % 137.0 %

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

Gross premiums written

$ 30,573 $ ( 10,340 ) $ 20,233

Net premiums written

$ 27,591 $ ( 10,098 ) $ 17,493

Net premiums earned

$ 35,381 $ 41,447 $ 76,828

Other insurance revenue

Net loss and LAE

( 19,703 ) ( 21,456 ) ( 41,159 )

Commission and other acquisition expenses

( 13,557 ) ( 16,221 ) ( 29,778 )

General and administrative expenses

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

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

Reconciliation to net income

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 losses, net ( 634 )

Other general and administrative expenses

Income tax expense ( 49 )

Interest in loss from equity method investments ( 154 )

Interest in income from equity method investments 2,947

Net income $ 9,286

Net loss and LAE ratio (1)

54.3 % 51.8 % 52.9 %

Commission and other acquisition expense ratio (2)

37.3 % 39.1 % 38.3 %

General and administrative expense ratio (3)

14.3 % 4.7 % 33.4 %

Expense ratio (4)

51.6 % 43.8 % 71.7 %

Combined ratio (5)

105.9 % 95.6 % 124.6 %

(1) Calculated by dividing net loss and LAE by the sum of net premiums earned and other insurance revenue.

(2) Calculated by dividing commission and other acquisition expenses by the sum of net premiums earned and other insurance revenue.

(3) Calculated by dividing general and administrative expenses by the sum of net premiums earned and other insurance revenue.

(4) Calculated by adding together the commission and other acquisition expense ratio and general and administrative expense ratio.

(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 September 30, 2021 and December 31, 2020:

September 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 March 31, 2022 and December 31, 2021:

March 31, 2022 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 nine months ended September 30, 2021 and 2020:

For the Three Months Ended September 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 months ended March 31, 2022 and 2021:

For the Three Months Ended March 31, 2022 2021

Net premiums written

Total % of Total Total % of Total

Diversified Reinsurance

1 unchanged sentence

$ 4,583 ( 44.4 ) % $ ( 244 ) 9.1 %

Total Diversified Reinsurance

AmTrust Reinsurance

Small Commercial Business

— — % 10 ( 0.4 ) %

Specialty Program

Specialty Risk and Extended Warranty

2,424 ( 3,303 )

Total AmTrust Reinsurance

1,137 ( 5,635 )

Total Net Premiums Written

$ 6,953 $ 3,031

For the Nine Months Ended September 30, 2021 2020

Net premiums written Total Total

Diversified Reinsurance

International $ 10,600 $ 27,627

Other — ( 36 )

Total Diversified Reinsurance

4,583 ( 44.4 ) % ( 234 ) 8.7 %

AmTrust Reinsurance

2 unchanged sentences

Specialty Program

837 ( 8.1 ) % ( 25 ) 0.9 %

Specialty Risk and Extended Warranty

4 unchanged sentences

$ ( 10,323 ) 100.0 % $ ( 2,696 ) 100.0 %

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 nine months ended September 30, 2021 and 2020:

For the Three Months Ended September 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 months ended March 31, 2022 and 2021:

For the Three Months Ended March 31, 2022 2021

Net premiums earned

17 unchanged sentences

$ 1,122 100.0 % $ 11,764 100.0 %

For the Nine Months Ended September 30, 2021 2020

Net premiums earned Total % of Total Total % of Total

Diversified Reinsurance

International $ 20,723 51.7 % $ 35,417 46.1 %

Other — — % ( 36 ) — %

Total Diversified Reinsurance 20,723 51.7 % 35,381 46.1 %

AmTrust Reinsurance

Small Commercial Business

( 5,073 ) ( 12.6 ) % ( 8,094 ) ( 10.6 ) %

Specialty Program

12 — % 311 0.4 %

Specialty Risk and Extended Warranty

24,444 60.9 % 49,230 64.1 %

Total AmTrust Reinsurance

19,383 48.3 % 41,447 53.9 %

Total Net Premiums Earned

$ 40,106 100.0 % $ 76,828 100.0 %

MAIDEN HOLDINGS, LTD.

3 unchanged sentences

The Company holds:

(i) AFS portfolios of fixed maturity and equity securities, carried at fair value;

(i) available-for-sale ("AFS") portfolios of fixed maturity and equity securities, carried at fair value;

(ii) other investments, of which certain investments are carried at fair value and investments in direct lending entities are carried at cost less impairment;

2 unchanged sentences

a) Fixed Maturities

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

The amortized cost, gross unrealized gains and losses, and fair value of fixed maturities at March 31, 2022 and December 31, 2021 are as follows:

March 31, 2022 Original or amortized cost Gross unrealized gains Gross unrealized losses Fair value

treasury bonds

2 unchanged sentences

85,607 75 ( 2,293 ) 83,389

Collateralized mortgage-backed securities 7,199 — ( 80 ) 7,119

government bonds 3,160 — ( 151 ) 3,009

Asset-backed securities

204,601 930 ( 2,693 ) 202,838

Collateralized loan obligations 174,842 22 ( 9,104 ) 165,760

Corporate bonds

7 unchanged sentences

96,554 2,429 ( 193 ) 98,790

Collateralized mortgage-backed securities 14,972 565 — 15,537

government bonds 3,163 113 — 3,276

Asset-backed securities

184,227 1,611 ( 406 ) 185,432

Collateralized loan obligations 183,974 140 ( 5,093 ) 179,021

Corporate bonds

4 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.

September 30, 2021 Amortized cost Fair value

March 31, 2022 Amortized cost Fair value

Due in one year or less

4 unchanged sentences

21,466 19,529

Due after ten years

224,483 214,962

1 unchanged sentence

85,607 83,389

Asset-backed securities

204,601 202,838

Collateralized mortgage-backed securities 7,199 7,119

Collateralized loan obligations 174,842 165,760

Total fixed maturity investments

$ 492,131 $ 471,230

MAIDEN HOLDINGS, LTD.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

(in thousands of U.S.

dollars, except share and per share data)

Investments (continued)

The following tables summarize fixed maturities in an unrealized loss position and the aggregate fair value and gross unrealized loss by length of time the security has continuously been in an unrealized loss position:

Less than 12 Months 12 Months or More Total

September 30, 2021 Fair

March 31, 2022 Fair

value Unrealized

5 unchanged sentences

74,447 ( 1,906 ) 3,661 ( 387 ) 78,108 ( 2,293 )

Asset-backed securities 97,887 ( 2,644 ) 7,052 ( 49 ) 104,939 ( 2,693 )

Collateralized mortgage-backed securities 7,119 ( 80 ) — — 7,119 ( 80 )

government bonds 3,009 ( 151 ) — — 3,009 ( 151 )

Collateralized loan obligations 156,371 ( 9,058 ) 5,055 ( 46 ) 161,426 ( 9,104 )

Corporate bonds

2 unchanged sentences

$ 352,152 $ ( 14,152 ) $ 60,753 $ ( 8,515 ) $ 412,905 $ ( 22,667 )

MAIDEN HOLDINGS, LTD.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

(in thousands of U.S.

dollars, except share and per share data)

Investments (continued)

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 .

At March 31, 2022, there were 109 securities in an unrealized loss position with a fair value of $ 412,905 and unrealized losses of $ 22,667 .

Of these securities in an unrealized loss position, there were 13 securities in our portfolio that have been in an unrealized loss position for twelve months or greater with a fair value of $ 60,753 and unrealized losses of $ 8,515 .

Less than 12 Months 12 Months or More Total

3 unchanged sentences

value Unrealized

treasury bonds

$ 59,879 $ ( 110 ) $ — $ — $ 59,879 $ ( 110 )

agency bonds – mortgage-backed

4,415 ( 193 ) — — 4,415 ( 193 )

Asset-backed securities 13,371 ( 217 ) 31,052 ( 189 ) 44,423 ( 406 )

Collateralized loan obligations 117,148 ( 5,057 ) 5,064 ( 36 ) 122,212 ( 5,093 )

Corporate bonds

3 unchanged sentences

At December 31, 2021, there were 44 securities in an unrealized loss position with a fair value of $ 252,895 and unrealized losses of $ 11,540 .

Of these securities, there were 35 securities that have been in an unrealized loss position for twelve months or greater with a fair value of $ 101,994 and unrealized losses of $ 2,375 .

Other-than-temporarily impaired

Of these securities in an unrealized loss position, there were 8 securities in our portfolio that have been in an unrealized loss position for twelve months or greater with a fair value of $ 32,916 and unrealized losses of $ 3,405 .

Other-than-temporarily impaired ("OTTI")

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 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.

At March 31, 2022, 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 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.

Any credit-related impairment related to fixed maturity securities that the Company does not intend to sell or is not more likely than not that the Company will be required to sell before its anticipated recovery of their amortized cost basis is recognized in net income, with the non-credit related impairment recognized in comprehensive income.

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.

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 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

There was no impairment recorded for the three months ended March 31, 2022 and 2021, respectively.

MAIDEN HOLDINGS, LTD.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

(in thousands of U.S.

dollars, except share and per share data)

Investments (continued)

The following tables summarize the credit ratings of our fixed maturities as at March 31, 2022 and December 31, 2021:

March 31, 2022 Amortized cost Fair value % of Total

treasury bonds

22 unchanged sentences

(1) Ratings above are based on Standard & Poor’s ("S&P"), or equivalent, ratings .

MAIDEN HOLDINGS, LTD.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

(in thousands of U.S.

dollars, except share and per share data)

Investments (continued)

b) Other Investments and Equity Method Investments

b) Other Investments, Equity Securities 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.

4 unchanged sentences

Other investments

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

The table shows the composition of the Company's other investments as of March 31, 2022 and December 31, 2021:

March 31, 2022 December 31, 2021

Carrying value % of Total Carrying value % of Total

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 $ 27,608 25.5 % $ 23,324 23.9 %

Private credit funds 21,781 20.1 % 20,863 21.3 %

Other privately held investments 12,597 11.7 % 10,500 10.8 %

Total other investments at fair value 61,986 57.3 % 54,687 56.0 %

1 unchanged sentence

Total other investments $ 108,161 100.0 % $ 97,663 100.0 %

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

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

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 %

The Company's investments in direct lending entities of $ 46,175 at March 31, 2022 (December 31, 2021 - $ 42,976 ) are carried at cost less impairment, if any, with any indication of impairment recognized in net income when determined.

Please see "Note 5(d).

Fair Value Measurements" for additional information regarding this investment.

MAIDEN HOLDINGS, LTD.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

(in thousands of U.S.

dollars, except share and per share data)

Investments (continued)

Equity Securities

Equity securities include publicly traded common stocks and privately held common and preferred stocks.

The Company's publicly traded equity investments in common stocks trade on major exchanges.

The Company's privately held equity investments in common and preferred stocks are direct investments in companies that the Company believes offer attractive risk adjusted returns or offer other strategic advantages.

Each investment may have its own unique terms and conditions and there may be restrictions on disposals.

There is no active market for these investments.

The following table provides the fair values of the equity securities held at March 31, 2022 and December 31, 2021:

March 31, 2022 December 31, 2021

Fair Value Fair Value

Privately held equity securities $ 48,224 $ 42,888

Publicly traded equity securities 708 1,174

Total equity securities $ 48,932 $ 44,062

Equity Method Investments

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

The Company's 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 as of March 31, 2022 and December 31, 2021:

March 31, 2022 December 31, 2021

Carrying Value % of Total Carrying Value % of Total

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

Real estate investments $ 52,210 56.0 % $ 44,050 52.6 %

Hedge fund investments 32,861 35.2 % 32,929 39.3 %

Other investments 8,246 8.8 % 6,763 8.1 %

4 unchanged sentences

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.

MAIDEN HOLDINGS, LTD.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

(in thousands of U.S.

dollars, except share and per share data)

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 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 September 30, 2021 was $ 26,949 .

Generally, the maximum exposure to loss on these interests is limited to the amount of commitment made by the Company as more fully described in "Note 11 - Commitments, Contingencies and Guarantees" in these condensed consolidated financial statements.

c) Net Investment Income

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

Net investment income was derived from the following sources for the three months ended March 31, 2022 and 2021:

For the Three Months Ended March 31,

Fixed maturities

3 unchanged sentences

Cash and cash equivalents and other investments 593 129

8,419 13,062 26,687 46,090

Investment expenses

4 unchanged sentences

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 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

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 March 31, 2022 and 2021:

MAIDEN HOLDINGS, LTD.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

(in thousands of U.S.

dollars, except share and per share data)

Investments (continued)

For the Three Months Ended March 31, 2022 Gross gains Gross losses Net

Fixed maturities

3 unchanged sentences

Net realized and unrealized gains (losses) on investment $ 3,151 $ ( 842 ) $ 2,309

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

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

Fixed maturities

$ 3,043 $ ( 149 ) $ 2,894

Other investments

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

$ 6,137 $ ( 343 ) $ 5,794

Equity securities 4,957 ( 25 ) 4,932

Other investments

1,022 ( 147 ) 875

Net realized and unrealized gains (losses) on investment $ 8,275 $ ( 174 ) $ 8,101

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

AFS fixed maturities

$ 23,939 $ ( 1 ) $ 23,938

Other investments

446 ( 184 ) 262

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

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 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

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

The unrealized losses recognized in net income for the three months ended March 31, 2022 and 2021 for investments still held at March 31, 2022 and 2021, respectively, were as follows:

For the Three Months Ended March 31,

Net (losses) gains recognized for equity securities during the period $ ( 492 ) $ 4,932

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

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

Unrealized (losses) gains recognized for equity securities still held at reporting date $ ( 492 ) $ 4,491

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

Proceeds from sales of fixed maturities were $ 101,604 and $ 153,816 for the three months ended March 31, 2022 and 2021, respectively.

Net unrealized gains on investments were as follows at March 31, 2022 and December 31, 2021, respectively:

March 31, 2022 December 31, 2021

Fixed maturities

1 unchanged sentence

Equity method investments — ( 4,414 )

Total net unrealized gains 7,095 49,488

Total net unrealized losses ( 20,901 ) ( 2,613 )

Deferred income tax

( 81 ) ( 131 )

Net unrealized gains, net of deferred income tax

$ 7,014 $ 49,357

Net unrealized losses, net of deferred income tax $ ( 20,852 ) $ ( 2,693 )

Change, net of deferred income tax

3 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 September 30, 2021 and December 31, 2020:

September 30, 2021 December 31, 2020

The fair values of restricted assets at March 31, 2022 and December 31, 2021 included:

March 31, 2022 December 31, 2021

Restricted cash – third party agreements $ 28,953 $ 19,177

9 unchanged sentences

375,021 493,883

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

Total restricted investments

15 unchanged sentences

Treasury bonds;

and publicly traded equity securities;

• Level 2 — Valuations based on quoted prices for similar assets or liabilities in active markets, quoted prices for identical assets or liabilities in inactive markets, or valuations based on models where the significant inputs are observable (e.g.

25 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 September 30, 2021 and December 31, 2020.

government and U.S.

agency — Bonds issued by the U.S.

agency bonds — Bonds issued by the U.S.

Treasury, the Federal Home Loan Bank, the Federal Home Loan Mortgage Corporation, Government National Mortgage Association, Federal National Mortgage Association and the Federal Farm Credit Banks Funding Corporation.

7 unchanged sentences

agency bonds are included in the Level 2 fair value hierarchy.

government and supranational bonds — These securities are generally priced by independent pricing services.

government bonds — These securities are generally priced by independent pricing services.

The Pricing Service may use current market trades for securities with similar quality, maturity and coupon.

1 unchanged sentence

As the significant inputs used to price non-U.S.

government and supranational bonds are observable market inputs, the fair values of non-U.S.

government and supranational bonds are included in the Level 2 fair value hierarchy.

government bonds are observable market inputs, the fair values of non-U.S.

government bonds are included in the Level 2 fair value hierarchy.

MAIDEN HOLDINGS, LTD.

2 unchanged sentences

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.

Fair Value of Financial Instruments (continued)

Collateralized loan obligations ("CLO") - These asset backed securities are originated by a variety of financial institutions that on acquisition are rated BBB-/Baa3 or higher.

These securities are priced by independent pricing services and brokers.

The pricing provider applies dealer quotes and other available trade information, prepayment speeds, yield curves and credit spreads to the valuation.

As the significant inputs used to price the CMBS and CLO are observable market inputs, their fair values are included in the Level 2 fair value hierarchy.

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

Commercial mortgage-backed securities ("CMBS") - These asset backed securities are originated by a variety of financial institutions that on acquisition are rated BBB-/Baa3 or higher.

These securities are priced by independent pricing services and brokers.

The pricing provider applies dealer quotes and other available trade information, prepayment speeds, yield curves and credit spreads to the valuation.

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

Corporate and municipal bonds — Bonds issued by corporations, U.S.

4 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.

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.

The common stock is carried at fair value using observable market pricing data and is included in the Level 1 fair value hierarchy.

Any unrealized gains or losses on the investment is recorded in net income in the period in which they occur.

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

Equity securities - Equity securities include publicly traded common and preferred stocks, and privately held common and preferred stocks.

The fair value of publicly traded common and preferred stocks is primarily priced by pricing services, reflecting the closing price quoted for the final trading day of the period.

These investments are carried at fair value using observable market pricing data and is included in the Level 1 fair value hierarchy.

Any unrealized gains or losses on the investment is recorded in net income in the reporting period in which it occurs.

The privately held common and preferred stocks are valued using significant inputs that are unobservable where there is little or no market activity.

Unadjusted third party pricing sources or management's assumptions and internal valuation models may be used to determine the fair values, therefore, these investments are classified as Level 3 in the fair value hierarchy.

Other investments — Includes unquoted investments comprised of the following types of 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.

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.

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

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

• Private credit funds:

4 unchanged sentences

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

(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.

3 unchanged sentences

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

At March 31, 2022 and December 31, 2021, the Company classified its financial instruments measured at fair value on a recurring basis in the following valuation hierarchy:

March 31, 2022 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

1 unchanged sentence

agency bonds – mortgage-backed — 83,389 — — 83,389

Collateralized mortgage-backed bonds — 7,119 — — 7,119

government bonds — 3,009 — — 3,009

Asset-backed securities — 202,838 — — 202,838

Collateralized loan obligations — 165,760 — — 165,760

Corporate bonds — 146,223 — — 146,223

Equity investments 1,903 — — — 1,903

Equity securities 708 — 27,660 20,564 48,932

Other investments

7 unchanged sentences

agency bonds – mortgage-backed — 98,790 — — 98,790

Collateralized mortgage-backed bonds — 15,537 — — 15,537

government bonds — 3,276 — — 3,276

Asset-backed securities — 185,432 — — 185,432

Collateralized loan obligations — 179,021 — — 179,021

Corporate bonds — 240,642 — — 240,642

Equity securities 1,174 — 25,094 17,794 44,062

Other investments

4 unchanged sentences

The Company utilizes the Pricing Service to assist in determining the fair value of its investments;

however, management is ultimately responsible for all fair values presented in the Company’s financial statements.

however, management is ultimately responsible for all fair values presented in the Company’s consolidated financial statements.

This includes responsibility for monitoring the fair value process, ensuring objective and reliable valuation practices, and pricing of assets and liabilities and use of pricing sources.

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 99.2 % and 99.1 % of our fixed maturities at September 30, 2021 and December 31, 2020, respectively.

The Pricing Service was utilized to estimate fair value measurements for 98.8 % and 99.0 % of our fixed maturities at March 31, 2022 and December 31, 2021, 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 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.

At March 31, 2022 and December 31, 2021, approximately 1.2 % and 1.0 %, respectively, of our fixed maturities were valued using the market approach.

At March 31, 2022, one security or $ 5,595 (2021 - one security or $ 6,225 ) of our fixed maturity investment portfolio 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, 2022 and December 31, 2021, 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 its initial public offering.

There were no transfers to or from Level 3 during the three months ended March 31, 2022.

MAIDEN HOLDINGS, LTD.

3 unchanged sentences

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 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.

At March 31, 2022, the Company holds Level 3 financial instruments of $ 29,660 (December 31, 2021 - $ 27,094 ) which includes privately held equity investments.

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 September 30, 2021:

Fair Value Valuation Technique Unobservable Inputs Range

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

Private equity investments $ 27,860 Quarterly financial statements Estimated maturity dates 1.0 years to 3.0 years

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

Total Level 3 investments $ 29,660

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 nine months ended September 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 September 30, For the Nine Months Ended September 30,

2021 2020 2021 2020

The following table shows the reconciliation of the beginning and ending balances for investments measured at fair value on a recurring basis using Level 3 inputs for the three months ended March 31, 2022 and 2021.

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

For the Three Months Ended March 31,

Balance - beginning of period $ 27,094 $ 26,094

4 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 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.

At March 31, 2022, 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, the fair values of these financial instruments are classified as Level 2.

The investments made by direct lending entities are carried at cost less impairment, if any, which approximates fair value.

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 (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 September 30, 2021 and December 31, 2020:

September 30, 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 March 31, 2022 and December 31, 2021:

March 31, 2022 December 31, 2021

Carrying Value Fair Value Carrying Value Fair Value

10 unchanged sentences

a) Common Shares

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.

At March 31, 2022, the aggregate authorized share capital of the Company is 150,000,000 shares from which 93,311,414 common shares were issued, of which 87,058,833 common shares are outstanding, and 18,600,000 preference shares were issued, all of which are outstanding.

The remaining 38,088,586 shares are undesignated at March 31, 2022.

Excluding the preference shares held by Maiden Reinsurance, a total of 6,093,532 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.

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.

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, 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 nine months ended September 30, 2021:

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

The following table shows the summary of the Company's preference shares repurchases made for the three months ended March 31, 2022 and 2021:

For the Three Months Ended March 31, 2022 For the Three Months Ended March 31, 2021

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

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Gain on purchase $ 3,543 $ 62,450

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

The following table shows the summary of changes for the Company's preference shares outstanding (including the total of the Company's preference shares held by Maiden Reinsurance pursuant to the cash tender offer in December 2020 and the 2021 Preference Share Repurchase Program) at March 31, 2022:

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

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

Total shares held by Maiden Reinsurance - March 31, 2022

4,064,311 4,410,226 4,031,931 12,506,468

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

Total shares held by non-affiliates - March 31, 2022

1,935,689 2,189,774 1,968,069 6,093,532

Percentage held by Maiden Reinsurance - September 30, 2021

Percentage held by Maiden Reinsurance - March 31, 2022

67.7 % 66.8 % 67.2 % 67.2 %

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.

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.

The Company's remaining authorization for preference share repurchases was $ 10,746 at March 31, 2022.

For further discussion on the Company's preference shares, please refer to the Company's Annual Report on Form 10-K for the year ended December 31, 2021.

c) Treasury Shares

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 common share repurchases at March 31, 2022 (December 31, 2021 - $ 74,245 ).

No repurchases were made during the three months ended March 31, 2022 and 2021 under the common share repurchase plan.

During the three months ended March 31, 2022, the Company repurchased a total of 403,716 common shares (2021 - 799,548 ) at an average price per share of $ 2.52 (2021 - $ 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.

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 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 September 30, 2021 Change in net unrealized gains on investment Foreign currency translation Total

For the Three Months Ended March 31, 2022 Change in net unrealized gains on investment Foreign currency translation Total

Beginning balance $ ( 2,693 ) $ ( 9,522 ) $ ( 12,215 )

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Ending balance, Maiden shareholders $ ( 20,852 ) $ ( 3,930 ) $ ( 24,782 )

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

Other comprehensive income (loss) before reclassifications 14,996 ( 6,998 ) 7,998

Amounts reclassified from AOCI to net income, net of tax ( 3,242 ) — ( 3,242 )

Net current period other comprehensive income (loss) 11,754 ( 6,998 ) 4,756

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

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

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

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

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

Other comprehensive (loss) income before reclassifications ( 20,506 ) 10,146 ( 10,360 )

Amounts reclassified from AOCI to net income, net of tax ( 4,246 ) — ( 4,246 )

( 7,032 ) — ( 7,032 )

Net current period other comprehensive (loss) income ( 24,752 ) 10,146 ( 14,606 )

Ending balance, Maiden shareholders $ 24,605 $ ( 15,354 ) $ 9,251

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

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

Beginning balance

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

Other comprehensive income (loss) before reclassifications 16,585 ( 10,821 ) 5,764

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

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

Ending balance, Maiden shareholders

$ 28,938 $ ( 14,981 ) $ 13,957

MAIDEN HOLDINGS, LTD.

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Long-Term Debt

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").

At March 31, 2022 and December 31, 2021, Maiden Holdings had outstanding publicly-traded senior notes which were issued in 2016 ("2016 Senior Notes") and its wholly owned subsidiary, Maiden Holdings North America, Ltd.

("Maiden NA") had outstanding publicly-traded senior notes which were issued in 2013 ("2013 Senior Notes") (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 September 30, 2021 and December 31, 2020:

September 30, 2021 2016 Senior Notes 2013 Senior Notes Total

The following tables detail the issuances of Senior Notes outstanding at March 31, 2022 and December 31, 2021:

March 31, 2022 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 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 interest expense incurred on the Senior Notes for the three months ended March 31, 2022 was $ 4,777 (2021 - $ 4,777 ), of which $ 1,342 was accrued at both March 31, 2022 and December 31, 2021, 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 nine months ended September 30, 2021 was $ 56 and $ 166 , respectively (2020 - $ 55 and $ 163 , respectively).

The amortization expense for the three months ended March 31, 2022 was $ 55 (2021 - $ 54 ).

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.

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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 nine months ended September 30, 2021 and 2020 was as follows:

For the Nine Months Ended September 30, 2021 2020

The effect of ceded reinsurance on net premiums written and earned and on net loss and LAE for the three months ended March 31, 2022 and 2021 was as follows:

For the Three Months Ended March 31, 2022 2021

Premiums written

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$ ( 2,283 ) $ 2,359

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.

The Company's reinsurance recoverable on unpaid losses balance as at March 31, 2022 was $ 558,262 (December 31, 2021 - $ 562,845 ) presented in the Condensed Consolidated Balance Sheets.

At March 31, 2022 and December 31, 2021, 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 $ 62,813 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 .

The reinsurance recoverable on unpaid losses due from Cavello under this retrocession agreement was $ 67,633 at March 31, 2022 (December 31, 2021 - $ 69,006 ).

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

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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 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).

As of March 31, 2022, the reinsurance recoverable on unpaid losses under the LPT/ADC Agreement was $ 489,860 while the deferred gain liability under the LPT/ADC Agreement was $ 44,860 (December 31, 2021 - $ 490,860 and $ 45,860 , 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.

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Related Party Transactions".

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

As of March 31, 2022, the amount of collateral required was $ 405,029 .

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 September 30, 2021.

Cavello's parent company, Enstar, has credit ratings of BBB from both Standard & Poor's and Fitch Ratings at March 31, 2022.

MAIDEN HOLDINGS, LTD.

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The reserve for loss and LAE consists of:

September 30, 2021 December 31, 2020

March 31, 2022 December 31, 2021

Reserve for reported loss and LAE

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

For the Nine Months Ended September 30, 2021 2020

For the Three Months Ended March 31, 2022 2021

Gross loss and LAE reserves, January 1

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( 101,718 ) ( 92,645 )

Retroactive reinsurance adjustment

24,296 32,955

Change in deferred gain on retroactive reinsurance 1,339 9,845

Assumed retroactive reinsurance business 14,350 —

Effect of foreign exchange rate movements

( 10,455 ) ( 16,488 )

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

Net loss and LAE reserves, March 31 827,761 1,203,799

Reinsurance recoverable on unpaid losses, March 31 558,262 580,709

Gross loss and LAE reserves, March 31 $ 1,386,023 $ 1,784,508

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 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

During the three months ended March 31, 2022, the Company recognized net favorable prior year loss development of $ 7,285 (2021 - favorable $ 5,554 ).

In the Diversified Reinsurance segment, net favorable prior year loss development was $ 2,211 for the three months ended March 31, 2022 (2021 - adverse $ 14 ).

Prior year loss development for the three months ended March 31, 2022 was due to favorable reserve development in German Auto Programs and other runoff business.

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

MAIDEN HOLDINGS, LTD.

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Reserve for Loss and Loss Adjustment Expenses (continued)

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.

In the AmTrust Reinsurance segment, the net favorable prior year loss development was $ 5,074 for the three months ended March 31, 2022 (2021 - favorable $ 5,568 ).

The net favorable prior year loss development for the three months ended March 31, 2022 was primarily due to favorable development from Workers Compensation policies and adjustments to AmTrust's inuring reinsurance for certain programs in Specialty Risk and Extended Warranty.

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.

The change in the deferred gain on retroactive reinsurance was $ 1,339 for the three months ended March 31, 2022 (2021 - $ 9,845 ).

This change included a $ 1,000 decrease in the deferred gain liability and related reinsurance recoverable on unpaid losses under the LPT/ADC Agreement with Cavello recognized in the three months ended March 31, 2022 (2021 - $ 9,845 ) for favorable development on reserves covered under the LPT/ADC Agreement.

The deferred gain on retroactive reinsurance under the LPT/ADC Agreement represents the cumulative adverse development for covered risks in the AmTrust Quota Share as of March 31, 2022 and December 31, 2021.

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.

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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 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

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, 2022 and 2021, respectively:

For the Three Months Ended March 31,

Gross and net premiums written $ ( 14,906 ) $ ( 2,462 )

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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 September 30, 2021 and December 31, 2020 pursuant to a loan agreement entered into between those parties.

• by lending funds of $ 167,975 at March 31, 2022 and December 31, 2021 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 $ 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).

Interest income on the loan was $ 879 for the three months ended March 31, 2022 (2021 - $ 860 ) and the effective yield was 2.1 % for the period (2021 - 2.0 %).

• 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;

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AmTrust subsidiaries.

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 ).

The amount of the collateral at March 31, 2022 was $ 138,810 (December 31, 2021 - $ 246,874 ) and the accrued interest was $ 416 (December 31, 2021 - $ 1,171 ).

Please refer to "Note 4.

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The annual interest rate was 1.80 % for the duration of 2021.

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).

At March 31, 2022, the funds withheld balance was $ 575,000 (December 31, 2021 - $ 575,000 ) and the accrued interest was $ 2,552 (December 31, 2021 - $ 2,609 ).

The interest income on the funds withheld receivable was $ 2,552 for the three months ended March 31, 2022 (2021 - $ 2,552 ).

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.

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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 September 30, 2021 was $ 286,118 (December 31, 2020 - $ 318,063 ) and the accrued interest was $ 1,577 (December 31, 2020 - $ 2,283 ).

For AEL, the amount of the collateral held in reinsurance trust accounts at March 31, 2022 was $ 234,633 (December 31, 2021 - $ 244,488 ) and the accrued interest was $ 1,538 (December 31, 2021 - $ 1,273 ).

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

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 ).

At March 31, 2022, the amount of funds withheld was $ 25,755 (December 31, 2021 - $ 26,460 ) and the accrued interest was $ 163 (December 31, 2021 - $ 141 ).

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 $ 111 for the three and nine months ended September 30, 2021, respectively (2020 - $ 64 and $ 262 , 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)

The interest income on the funds withheld receivable was $ 26 for the three months ended March 31, 2022 (2021 - $ 37 ).

Brokerage Agreement

4 unchanged sentences

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

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.

Maiden Reinsurance recorded $( 60 ) of reinsurance brokerage expense for the three months ended March 31, 2022 (2021 - $ 69 ) and deferred reinsurance brokerage of $ 1,021 at March 31, 2022 (December 31, 2021 - $ 1,147 ) 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)

Asset Management Agreement

2 unchanged sentences

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

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.

The Company recorded $ 126 of investment management fees for the three months ended March 31, 2022 (2021 - $ 272 ) 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.

2 unchanged sentences

The novation mandates that AmTrust is to be bound by the terms of the asset management agreement in place of AIIM and AmTrust agrees to perform any and all past, present and future obligations of AIIM under the asset management agreement.

Insurance Management Services Agreement

Effective August 31, 2019, the Company entered into an agreement with Risk Services - Vermont, Inc.

("Risk Services"), an affiliate of AmTrust.

Pursuant to the agreement, Risk Services agreed to provide insurance management services to the Company including regulatory compliance services in connection with the re-domestication, licensing and operation of Maiden Reinsurance in the State of Vermont.

The initial term of the agreement is three years and will automatically renew for an additional three years until either party gives written notice of its intention to terminate this agreement at least three months prior to the commencement of the next applicable period.

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

683 Capital Partners, LP (“683 Partners”)

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

At March 31, 2022, 683 Partners and its affiliates own or control approximately 6.7 % of the outstanding common shares of the Company.

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

4 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 $ 31,221 were managed by 683 Capital under this agreement at September 30, 2021 (December 31, 2020 - $ 29,435 ).

MAIDEN HOLDINGS, LTD.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

(in thousands of U.S.

dollars, except share and per share data)

Hedge fund investments of $ 32,861 were managed by 683 Capital under this agreement at March 31, 2022 (December 31, 2021 - $ 32,929 ).

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.

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, 2021.

a) Concentrations of Credit Risk

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.

At March 31, 2022 and December 31, 2021, 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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AmTrust has a financial strength/credit rating of A- (Excellent) from A.M.

Best at September 30, 2021.

Best at March 31, 2022.

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 September 30, 2021 will be fully collectible.

The Company believes these balances as at March 31, 2022 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.

The Company had unfunded commitments on other investments of $ 67,278 at March 31, 2022 (December 31, 2021 - $ 68,262 ).

The Company had unfunded commitments on equity method investments of $ 17,790 at March 31, 2022 (December 31, 2021 - $ 25,950 ).

The Company's unfunded commitments on privately held equity securities at March 31, 2022 was $ 22,052 (December 31, 2021 - $ 27,415 ).

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)

The Company's unfunded commitments on other investments held at March 31, 2022 and December 31, 2021 were as follows:

March 31, 2022 December 31, 2021

Fair Value % of Total Fair Value % of Total

Private credit funds $ 3,771 5.6 % $ 4,897 7.2 %

Investments in direct lending entities 9,912 14.7 % 13,216 19.4 %

Other privately held investments 1,900 2.8 % 4,000 5.8 %

Private equity funds 51,695 76.9 % 46,149 67.6 %

Total unfunded commitments on other investments $ 67,278 100.0 % $ 68,262 100.0 %

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.

3 unchanged sentences

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

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.

As discussed above, at March 31, 2022, guarantees of $ 36,231 (December 31, 2021 - $ 33,305 ) were 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.

1 unchanged sentence

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 nine months ended September 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.

For operating leases that have a 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.

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 September 30, 2021.

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

This amount of $ 427 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 at March 31, 2022.

The Company's weighted-average remaining lease term is approximately 2.5 years at March 31, 2022.

d) Legal Proceedings

6 unchanged sentences

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

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)

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

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.

21 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, Contingencies and Guarantees (continued)

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

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

2021 2020 2021 2020

For the Three Months Ended March 31,

Net (loss) income $ ( 1,949 ) $ 9,286

6 unchanged sentences

Share options and restricted share units (2)

4,452 — 4,406 —

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, 2021 for the terms and conditions of securities that could potentially be dilutive in the future.

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

MAIDEN HOLDINGS, LTD.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

(in thousands of U.S.

dollars, except share and per share data)

The Company uses the estimated annual effective tax rate method.

Certain items, including those deemed to be unusual, infrequent or that cannot be reliably estimated, are excluded from the estimated annual effective tax rate.

In these cases, the actual tax expense or benefit is reported in the same period as the related item.

Certain tax effects are also not reflected in the estimated annual effective tax rate, primarily certain changes in the realizability of deferred tax assets "(DTAs") and uncertain tax positions.

Maiden NA files a consolidated federal income tax return for the Company’s U.S.

based subsidiaries, including Maiden Reinsurance, which re-domesticated from Bermuda to Vermont on March 16, 2020 and, as a result, became subject to U.S.

Maiden NA has net operating loss carry-forwards and other DTAs and deferred tax liabilities that are not presently recognized as a net DTA because a full valuation allowance is currently carried against them.

On March 27, 2020, the U.S.

enacted the Coronavirus Aid, Relief and Economic Security Act (the “CARES” Act) to mitigate the economic impacts of COVID-19.

The Company believes that the provisions of the CARES Act will not have a material impact on its U.S.

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.

For the three months ended March 31, 2022, there were 3,642 potentially dilutive securities (2021 - 3,949 ).

The income tax expense amounts on net income for the three months ended March 31, 2022 and 2021 were $ 1,255 and $ 49 , respectively.

The effective tax rate on income differs from the statutory rate of zero percent under Bermuda law due to tax on foreign operations, primarily the U.S.

A valuation allowance has been established against the net U.S.

deferred tax assets which are primarily attributable to net operating losses and discounting of loss reserves for tax purposes.

At this time, the Company believes it is necessary to establish a valuation allowance against the U.S.

net deferred tax assets due to insufficient positive evidence regarding the utilization of these tax benefits in the future .

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