What changed in this filing

/stocks — the workspaceLOADING

Item 1. Financial Statements

2022-08-09 compared with 2022-05-10 · 385 added, 209 removed, 1062 unchanged (36% of the section changed)

9 unchanged sentences

$ 435,367 $ 597,145

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

Equity securities, at fair value (cost 2022 - $ 54,230 ;

2021 - $ 43,315 )

57,692 44,062

Equity method investments 76,847 83,742

45 unchanged sentences

dollars, except per share data)

For the Three Months Ended March 31,

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

2022 2021 2022 2021

Gross premiums written

5 unchanged sentences

Net premiums earned

10,443 13,312 11,565 25,076

Other insurance revenue

469 539 520 808

Net investment income

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

7,667 7,278 14,234 17,119

Net realized and unrealized investment gains 2,111 849 4,420 8,950

Total revenues

3 unchanged sentences

Commission and other acquisition expenses

4,885 6,899 7,413 12,841

General and administrative expenses

1 unchanged sentence

Interest and amortization expenses

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

4,833 4,832 9,665 9,663

Foreign exchange and other (gains) losses ( 6,586 ) 1,588 ( 10,535 ) ( 1,954 )

Total expenses

17,300 16,898 29,314 40,485

(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

Income before income taxes and interest in (loss) income of equity method investments 3,390 5,080 1,425 11,468

income tax (benefit) expense ( 713 ) ( 257 ) 542 ( 208 )

Interest in (loss) income of equity method investments ( 3,041 ) 2,775 ( 1,770 ) 5,722

Net income (loss) 1,062 8,112 ( 887 ) 17,398

Gain from repurchase of preference shares 24,690 18,714 28,233 81,164

7 unchanged sentences

(in thousands of U.S.

For the Three Months Ended March 31,

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

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

2022 2021 2022 2021

Net income (loss) $ 1,062 $ 8,112 $ ( 887 ) $ 17,398

Other comprehensive loss

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

Net unrealized holdings (losses) gains on fixed maturity investments arising during period ( 24,118 ) 2,206 ( 41,582 ) ( 17,325 )

Net unrealized holdings gains (losses) on equity method investments arising during period — ( 2,407 ) 4,414 ( 3,419 )

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

Adjustment for reclassification of net realized gains recognized in net income (loss) ( 410 ) ( 779 ) ( 5,648 ) ( 5,025 )

Foreign currency translation adjustment 10,256 ( 2,555 ) 15,848 7,591

2 unchanged sentences

Other comprehensive loss, after tax ( 14,158 ) ( 3,528 ) ( 26,725 ) ( 18,134 )

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

Comprehensive (loss) income $ ( 13,096 ) $ 4,584 $ ( 27,612 ) $ ( 736 )

See accompanying notes to the unaudited Condensed Consolidated Financial Statements.

2 unchanged sentences

(in thousands of U.S.

For the Three Months Ended March 31,

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

2022 2021 2022 2021

Preference shares - Series A, C and D

10 unchanged sentences

Beginning balance

933 920 923 898

Issuance of common shares from vesting of stock based compensation 1 2 11 24

Ending balance

934 922 934 922

Additional paid-in capital

3 unchanged sentences

Share-based compensation expense

231 282 2,271 4,315

Repurchase of Preference Shares 1,091 1,585 1,321 7,104

Cash settlement of restricted shares granted — ( 65 )

Cash settlement of restricted shares/options granted 10 — 10 ( 65 )

Ending balance

772,241 767,452 772,241 767,452

Accumulated other comprehensive (deficit) income

Accumulated other comprehensive (loss) income

Beginning balance

( 24,782 ) 9,251 ( 12,215 ) 23,857

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

Change in net unrealized investment losses ( 24,414 ) ( 973 ) ( 42,573 ) ( 25,725 )

Foreign currency translation adjustment

10,256 ( 2,555 ) 15,848 7,591

Ending balance

4 unchanged sentences

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

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

Net income (loss) 1,062 8,112 ( 887 ) 17,398

Gain on repurchase of preference shares 24,690 18,714 28,233 81,164

14 unchanged sentences

(in thousands of U.S.

For the Three Months Ended March 31, 2022 2021

For the Six Months Ended June 30, 2022 2021

Cash flows from operating activities

Net (loss) income $ ( 887 ) $ 17,398

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

Adjustments to reconcile net (loss) income to net cash flows from operating activities:

Depreciation, amortization and share-based compensation 1,845 6,840

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

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

Interest in loss (income) of equity method investments 1,770 ( 5,722 )

Net realized and unrealized investment gains ( 4,420 ) ( 8,950 )

Foreign exchange and other gains ( 10,535 ) ( 1,954 )

27 unchanged sentences

Repurchase of preference shares ( 9,984 ) ( 124,658 )

Cash settlement of restricted shares granted — ( 166 )

Cash settlement of restricted shares granted and options exercised 10 ( 166 )

Net cash used in financing activities ( 10,983 ) ( 127,183 )

Effect of exchange rate changes on foreign currency cash, restricted cash and equivalents ( 1,213 ) ( 107 )

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

Net decrease in cash, restricted cash and cash equivalents ( 4,619 ) ( 62,069 )

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

24 unchanged sentences

These unaudited Condensed Consolidated Financial Statements, including these notes, should be read in conjunction with the Company's audited Consolidated Financial Statements and related notes included in the Company's Annual Report on Form 10-K for the year ended December 31, 2021.

Certain prior year comparatives have been reclassified to conform to the current year presentation.

Certain prior year comparatives have been reclassified to conform to the current period presentation.

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

17 unchanged sentences

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 .

Effective October 1, 2021, GLS completed its first loss portfolio transfer transaction which includes an adverse development cover.

Since then GLS continues to develop additional opportunities consistent with its business plan which 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, and as of June 30, 2022, GLS and its subsidiaries have insurance related liabilities totaling $ 36,318 which included total reserves of $ 22,379 , derivative liability on retroactive reinsurance of $ 9,341 and deferred gains on retroactive reinsurance of $ 4,598 .

MAIDEN HOLDINGS, LTD.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

(in thousands of U.S.

dollars, except share and per share data)

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, 2021.

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 except for the following:

Derivative Instruments - The Company has recently entered into reinsurance contracts that are accounted for as derivatives.

These reinsurance contracts provide indemnification to an insured or cedant as a result of a change in a variable as opposed to an identifiable insurable event.

The Company considers these contracts to be part of its underwriting operations.

The derivatives are initially valued at cost which approximates fair value.

In subsequent measurement periods, the fair values of these derivatives are determined using internally developed discounted cash flow models using appropriate discount rates.

N et asset and liability derivatives are classified within other assets and other liabilities, as applicable, in the consolidated balance sheets.

Changes in fair value prior to settlement of the derivative instruments are unrealized and recognized in net income for those derivatives not designated as hedges.

The unrealized gains (losses) are included in other insurance revenue as the derivative instruments held are related to the Company's underwriting portfolio and are not investment related.

Please refer to "Note 5.

Fair Value Measurements " for further disclosures regarding the derivative instruments held by the Company.

Recently Issued Accounting Standards Not Yet Adopted

Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions

In June 2022, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2022-03 " Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions" an amendment of Fair Value Measurement (Topic 820).

The amendments in this ASU require the Company to provide disclosures for equity securities subject to contractual sale restrictions under 820-10-50-6B including the fair value of equity securities subject to contractual sale restrictions reflected in the balance sheet;

the nature and remaining duration of the restrictions;

and any circumstances that could cause a lapse in the restrictions.

For public business entities, the amendments are effective for fiscal years beginning after December 15, 2023, and interim periods within those fiscal years.

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

These restrictions may include lock-ups, redemption gates, restricted share classes, restrictions on the frequency of redemption and notice periods as described in " Note 4.

(b) Investments" .

The Company is currently assessing the required disclosures for equity securities that may be subject to contractual sales restrictions.

These amendments only impact disclosures made in "Note 4.

Investments" therefore, the adoption of this standard will not impact the Company’s consolidated balance sheets, results of operations or statement of cash flows.

MAIDEN HOLDINGS, LTD.

17 unchanged sentences

All remaining assets are allocated to Corporate.

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

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

The following tables summarize the underwriting results of our reportable segments and the reconciliation of our reportable segments' underwriting results to consolidated net income for the three months ended June 30, 2022 and 2021, respectively:

For the Three Months Ended June 30, 2022 Diversified Reinsurance AmTrust Reinsurance Total

Gross premiums written

10 unchanged sentences

( 3,008 ) ( 1,275 ) ( 4,283 )

Underwriting loss $ ( 1,273 ) $ ( 3,857 ) ( 5,130 )

Reconciliation to net income

Net investment income and net realized and unrealized investment gains 9,778

Interest and amortization expenses

Foreign exchange and other gains, net 6,586

Other general and administrative expenses

Income tax benefit 713

Interest in loss of equity method investments ( 3,041 )

Net income $ 1,062

MAIDEN HOLDINGS, LTD.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

(in thousands of U.S.

dollars, except share and per share data)

Segment Information (continued)

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

Gross premiums written

$ 5,191 $ ( 1,757 ) $ 3,434

Net premiums written

$ 5,018 $ ( 1,757 ) $ 3,261

Net premiums earned

$ 6,962 $ 6,350 $ 13,312

Other insurance revenue

Net loss and LAE

( 1,247 ) 6,574 5,327

Commission and other acquisition expenses

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

General and administrative expenses

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

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

Reconciliation to net income

Net investment income and net realized and unrealized investment gains 8,127

Interest and amortization expenses

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

Other general and administrative expenses

Income tax benefit 257

Interest in income from equity method investments 2,775

Net income $ 8,112

The following tables summarize the underwriting results of our reportable segments and the reconciliation of our reportable segments' underwriting results to consolidated net (loss) income for the six months ended June 30, 2022 and 2021, respectively:

For the Six Months Ended June 30, 2022 Diversified Reinsurance AmTrust Reinsurance Total

Gross premiums written

$ 10,884 $ ( 17,715 ) $ ( 6,831 )

Net premiums written

$ 10,578 $ ( 17,715 ) $ ( 7,137 )

Net premiums earned

$ 13,080 $ ( 1,515 ) $ 11,565

Other insurance revenue

Net loss and LAE

( 980 ) ( 3,611 ) ( 4,591 )

Commission and other acquisition expenses

( 7,290 ) ( 123 ) ( 7,413 )

General and administrative expenses

( 5,106 ) ( 1,760 ) ( 6,866 )

Underwriting income (loss) $ 224 $ ( 7,009 ) ( 6,785 )

5 unchanged sentences

Income tax expense ( 542 )

Interest in income of equity method investments 1,271

Interest in loss from equity method investments ( 1,770 )

Net loss $ ( 887 )

4 unchanged sentences

Segment Information (continued)

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

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

Gross premiums written

17 unchanged sentences

Other general and administrative expenses

Income tax expense ( 49 )

Income tax benefit 208

Interest in income from equity method investments 5,722

Net income $ 17,398

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

The following tables summarize the financial position of the Company's reportable segments including the reconciliation to the Company's consolidated total assets at June 30, 2022 and December 31, 2021:

June 30, 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 months ended March 31, 2022 and 2021:

For the Three Months Ended March 31, 2022 2021

The following tables set forth financial information relating to net premiums written by major line of business and reportable segment for the three and six months ended June 30, 2022 and 2021:

For the Three Months Ended June 30, 2022 2021

Net premiums written

Total % of Total Total % of Total

Diversified Reinsurance

1 unchanged sentence

$ 5,995 $ 5,028

— — % 10 ( 0.4 ) %

Total Diversified Reinsurance

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

AmTrust Reinsurance

2 unchanged sentences

Specialty Program

Specialty Risk and Extended Warranty

( 98 ) ( 159 )

Total AmTrust Reinsurance

( 2,809 ) ( 1,757 )

Total Net Premiums Written

$ 3,186 $ 3,261

For the Six Months Ended June 30, 2022 2021

Net premiums written Total Total

Diversified Reinsurance

International $ 10,578 $ 4,784

Total Diversified Reinsurance 10,578 4,784

AmTrust Reinsurance

Small Commercial Business

( 14,371 ) ( 4,072 )

Specialty Program

Specialty Risk and Extended Warranty

4 unchanged sentences

$ ( 7,137 ) $ 565

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

MAIDEN HOLDINGS, LTD.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

(in thousands of U.S.

dollars, except share and per share data)

Segment Information (continued)

The following tables set forth financial information relating to net premiums earned by major line of business and reportable segment for the three and six months ended June 30, 2022 and 2021:

For the Three Months Ended June 30, 2022 2021

Net premiums earned

17 unchanged sentences

$ 10,443 100.0 % $ 13,312 100.0 %

For the Six Months Ended June 30, 2022 2021

Net premiums earned Total % of Total Total % of Total

Diversified Reinsurance

International $ 13,080 113.1 % $ 13,202 52.6 %

Total Diversified Reinsurance 13,080 113.1 % 13,202 52.6 %

AmTrust Reinsurance

Small Commercial Business

( 14,359 ) ( 124.2 ) % ( 3,846 ) ( 15.3 ) %

Specialty Program

776 6.7 % ( 16 ) ( 0.1 ) %

Specialty Risk and Extended Warranty

12,068 104.4 % 15,736 62.8 %

Total AmTrust Reinsurance

( 1,515 ) ( 13.1 ) % 11,874 47.4 %

Total Net Premiums Earned

$ 11,565 100.0 % $ 25,076 100.0 %

MAIDEN HOLDINGS, LTD.

8 unchanged sentences

a) Fixed Maturities

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

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

The amortized cost, gross unrealized gains and losses, and fair value of fixed maturities at June 30, 2022 and December 31, 2021 are as follows:

June 30, 2022 Original or amortized cost Gross unrealized gains Gross unrealized losses Fair value

treasury bonds

23 unchanged sentences

Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

March 31, 2022 Amortized cost Fair value

June 30, 2022 Amortized cost Fair value

Due in one year or less

18 unchanged sentences

Less than 12 Months 12 Months or More Total

March 31, 2022 Fair

June 30, 2022 Fair

value Unrealized

12 unchanged sentences

$ 348,193 $ ( 26,639 ) $ 85,879 $ ( 18,808 ) $ 434,072 $ ( 45,447 )

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 .

At June 30, 2022, there were 121 securities in an unrealized loss position with a fair value of $ 434,072 and unrealized losses of $ 45,447 .

Of these securities in an unrealized loss position, there were 21 securities in our portfolio that have been in an unrealized loss position for twelve months or greater with a fair value of $ 85,879 and unrealized losses of $ 18,808 .

17 unchanged sentences

The Company performs quarterly reviews of its fixed maturities in order to determine whether declines in fair value below the amortized cost basis were considered other-than-temporary in accordance with applicable guidance.

At March 31, 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.

At June 30, 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.

2 unchanged sentences

The Company continually monitors the credit quality of the fixed maturity investments to assess if it is probable that it will receive contractual or estimated cash flows in the form of principal and interest.

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

There was no impairment recorded for the three and six months ended June 30, 2022 and 2021, respectively.

MAIDEN HOLDINGS, LTD.

3 unchanged sentences

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

The following tables summarize the credit ratings of our fixed maturities as at June 30, 2022 and December 31, 2021:

June 30, 2022 Amortized cost Fair value % of Total

treasury bonds

29 unchanged sentences

Other investments

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

The table shows the composition of the Company's other investments as of June 30, 2022 and December 31, 2021:

June 30, 2022 December 31, 2021

Carrying value % of Total Carrying value % of Total

5 unchanged sentences

Total other investments $ 116,016 100.0 % $ 97,663 100.0 %

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.

The Company's investments in direct lending entities of $ 49,479 at June 30, 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.

No impairment was recognized for the three and six months ended June 30, 2022 and 2021.

Please see "Note 5(d).

6 unchanged sentences

Equity Securities

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

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

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

2 unchanged sentences

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

The following table provides the cost and fair values of the equity securities held at June 30, 2022 and December 31, 2021:

June 30, 2022 December 31, 2021

Cost Fair Value Cost Fair Value

Privately held equity securities $ 53,671 $ 57,200 $ 42,756 $ 42,888

2 unchanged sentences

Equity Method Investments

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

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

The table below shows the carrying value of our equity method investments as of June 30, 2022 and December 31, 2021:

June 30, 2022 December 31, 2021

Carrying Value % of Total Carrying Value % of Total

9 unchanged sentences

c) Net Investment Income

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,

Net investment income was derived from the following sources for the three and six months ended June 30, 2022 and 2021:

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

2022 2021 2022 2021

Fixed maturities

3 unchanged sentences

Cash and cash equivalents and other investments 989 107 1,582 236

7,821 8,083 14,571 18,268

Investment expenses

2 unchanged sentences

$ 7,667 $ 7,278 $ 14,234 $ 17,119

d) Net Realized and Unrealized Gains (Losses) on Investment

d) Net Realized and Unrealized Investment Gains (Losses)

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 March 31, 2022 and 2021:

The following tables show the net realized and unrealized investment gains (losses) included in the Condensed Consolidated Statements of Income for the three and six months ended June 30, 2022 and 2021:

MAIDEN HOLDINGS, LTD.

3 unchanged sentences

Investments (continued)

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

For the Three Months Ended June 30, 2022 Gross gains Gross losses Net

Fixed maturities

2 unchanged sentences

Other investments 519 ( 1,700 ) ( 1,181 )

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

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

Net realized and unrealized investment gains (losses) $ 4,178 $ ( 2,067 ) $ 2,111

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

Fixed maturities

2 unchanged sentences

Other investments

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

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 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 $ 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

Net realized and unrealized investment gains (losses) $ 1,555 $ ( 706 ) $ 849

For the Six Months Ended June 30, 2022 Gross gains Gross losses Net

Fixed maturities

$ 1,238 $ ( 142 ) $ 1,096

Equity securities 3,659 ( 812 ) 2,847

Other investments

2,432 ( 1,955 ) 477

Net realized and unrealized investment gains (losses) $ 7,329 $ ( 2,909 ) $ 4,420

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

Fixed maturities

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

Equity securities 5,042 ( 636 ) 4,406

Other investments

Net realized and unrealized investment gains (losses) $ 9,830 $ ( 880 ) $ 8,950

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

The unrealized gains and losses recognized in net income for the three and six months ended June 30, 2022 and 2021 for investments still held at June 30, 2022 and 2021, respectively, were as follows:

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

2022 2021 2022 2021

Net gains (losses) recognized for equity securities during the period $ 3,339 $ ( 526 ) $ 2,847 $ 4,406

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

Unrealized gains (losses) recognized for equity securities still held at reporting date $ 3,339 $ ( 526 ) $ 2,847 $ 3,965

Proceeds from sales of fixed maturity investments were $ 2,934 and $ 104,538 for the three and six months ended June 30, 2022, respectively (2021 - $ 52,538 and $ 206,354 , respectively).

Net unrealized gains (losses) were as follows at June 30, 2022 and December 31, 2021, respectively:

June 30, 2022 December 31, 2021

Fixed maturity investments $ ( 45,429 ) $ 1,801

Equity method investments — ( 4,414 )

4 unchanged sentences

$ ( 42,573 ) $ ( 52,050 )

MAIDEN HOLDINGS, LTD.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

(in thousands of U.S.

dollars, except share and per share data)

Investments (continued)

e) Restricted Cash and Cash Equivalents and Investments

1 unchanged sentence

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

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

March 31, 2022 December 31, 2021

The fair values of restricted assets at June 30, 2022 and December 31, 2021 included:

June 30, 2022 December 31, 2021

Restricted cash – third party agreements $ 20,969 $ 19,177

13 unchanged sentences

$ 417,167 $ 582,147

MAIDEN HOLDINGS, LTD.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

(in thousands of U.S.

dollars, except share and per share data)

Fair Value of Financial Instruments

34 unchanged sentences

The Company bases its estimates of fair values for assets on the bid price as it represents what a third party market participant would be willing to pay in an orderly transaction.

MAIDEN HOLDINGS, LTD.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

(in thousands of U.S.

dollars, except share and per share data)

Fair Value of Financial Instruments (continued)

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

The following describes the valuation techniques used by the Company to determine the fair value of financial instruments that are measured at fair value on a recurring basis held at March 31, 2022 and December 31, 2021.

government and U.S.

15 unchanged sentences

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

MAIDEN HOLDINGS, LTD.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

(in thousands of U.S.

dollars, except share and per share data)

Fair Value 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.

28 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.

Derivative Instruments - The Company has recently entered into reinsurance contracts that are accounted for as derivatives.

These reinsurance contracts provide indemnification to an insured or cedant as a result of a change in a variable as opposed to an identifiable insurable event.

The Company considers these contracts to be part of its underwriting operations.

The derivatives are initially valued at cost which approximates fair value.

In subsequent measurement periods, the fair values of these derivatives are determined using internally developed discounted cash flow models using appropriate discount rates.

The selection of an appropriate discount rate is judgmental and is the most significant unobservable input used in the valuation of these derivatives.

A significant increase (decrease) in this input in isolation could result in a significantly lower (higher) fair value measurement for the derivative contract.

As the significant inputs used to price these derivatives are unobservable, the fair values of these contracts are classified as Level 3.

MAIDEN HOLDINGS, LTD.

3 unchanged sentences

Fair Value of Financial Instruments (continued)

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

(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 June 30, 2022 and December 31, 2021, the Company classified its financial instruments measured at fair value on a recurring basis in the following valuation hierarchy:

June 30, 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

8 unchanged sentences

— — 1,000 65,537 66,537

$ 66,438 $ 405,500 $ 29,660 $ 80,550 $ 582,148

Total investments $ 65,067 $ 370,792 $ 36,194 $ 87,543 $ 559,596

As a percentage of total assets 3.0 % 17.2 % 1.7 % 4.1 % 26.0 %

3.0 % 18.3 % 1.3 % 3.6 % 26.2 %

Derivative liability on retroactive reinsurance $ — $ — $ 9,341 $ — $ 9,341

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

9 unchanged sentences

— — 2,000 52,687 54,687

$ 59,879 $ 537,266 $ 27,094 $ 70,481 $ 695,894

Total investments $ 61,053 $ 537,266 $ 27,094 $ 70,481 $ 695,894

As a percentage of total assets

4 unchanged sentences

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

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

The Pricing Service was utilized to estimate fair value measurements for 98.9 % and 99.0 % of our fixed maturities at June 30, 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 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)

At June 30, 2022 and December 31, 2021, approximately 1.1 % and 1.0 %, respectively, of our fixed maturities were valued using the market approach.

At June 30, 2022, one security or $ 4,849 (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 June 30, 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 six months ended June 30, 2021, the Company transferred its equity investment in an insurtech start-up company focused on technological advancement in the automobile insurance industry out of Level 3 within the fair value hierarchy and into Level 1 due to the recent completion of its initial public offering.

There were no transfers to or from Level 3 during the six months ended June 30, 2022.

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 March 31, 2022:

At June 30, 2022, the Company holds Level 3 financial instruments which include privately held equity investments of $ 36,194 (December 31, 2021 - $ 27,094 ) and derivative liability on retroactive reinsurance of $ 9,341 .

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

The fair value of derivative instruments are determined using a discounted cash flow model in which the Company examines current market conditions, historical results as well as contract specific information that may impact future cash flows in order to assess the reasonableness of inputs used in the valuation model.

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

Fair Value Valuation Technique Unobservable Inputs Range

2 unchanged sentences

Total Level 3 investments $ 36,194

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.

Derivative liability on retroactive reinsurance $ 9,341 Discounted cash flows Duration matched discount rates 2.0 % to 3.0 %

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 and six months ended June 30, 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,

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

2022 2021 2022 2021

Balance - beginning of period $ 29,660 $ 29,344 $ 27,094 $ 26,094

Sales ( 1,000 ) — ( 1,000 ) —

Net unrealized gains (losses) 3,659 — 3,659 —

Purchases 3,875 — 6,441 4,250

3 unchanged sentences

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

At March 31, 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.

At June 30, 2022, the carrying values of 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.

1 unchanged sentence

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

MAIDEN HOLDINGS, LTD.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

(in thousands of U.S.

dollars, except share and per share data)

Fair Value of Financial Instruments (continued)

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

The following table presents the respective carrying value and fair value for the Senior Notes as at June 30, 2022 and December 31, 2021:

June 30, 2022 December 31, 2021

Carrying Value Fair Value Carrying Value Fair Value

4 unchanged sentences

Total Senior Notes $ 262,500 $ 178,714 $ 262,500 $ 235,120

MAIDEN HOLDINGS, LTD.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

(in thousands of U.S.

dollars, except share and per share data)

Shareholders' Equity

a) Common Shares

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.

At June 30, 2022, the aggregate authorized share capital of the Company is 150,000,000 shares from which 93,414,080 common shares were issued, of which 87,161,499 common shares are outstanding, and 18,600,000 preference shares were issued, all of which are outstanding.

The remaining 37,985,920 shares are undesignated at June 30, 2022.

Excluding the preference shares held by Maiden Reinsurance, a total of 4,786,884 preference shares are held by non-affiliates.

b) Preference Shares

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, 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 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

On March 3, 2021 and May 6, 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 and $ 50,000 , respectively, 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 are collectively referred to as the "2021 Preference Share Repurchase Program".

The following table shows the summary of the Company's preference shares repurchases made for the three and six months ended June 30, 2022 and 2021, respectively:

For the Three Months Ended June 30, 2022 For the Three Months Ended June 30, 2021 For the Six Months Ended June 30, 2022 For the Six Months Ended June 30, 2021

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

Series A 435,639 $ 5.27 822,104 $ 14.52 435,639 $ 5.27 3,383,740 $ 14.79

4 unchanged sentences

Gain on purchase $ 24,690 $ 18,714 $ 28,233 $ 81,164

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:

As of June 30, 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

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 - March 31, 2022

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

Percentage held by Maiden Reinsurance - March 31, 2022

67.7 % 66.8 % 67.2 % 67.2 %

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.

Total shares held by Maiden Reinsurance 4,499,950 4,855,972 4,457,194 13,813,116

Total shares held by non-affiliates 1,500,050 1,744,028 1,542,806 4,786,884

Percentage held by Maiden Reinsurance 75.0 % 73.6 % 74.3 % 74.3 %

The Company's remaining authorization for preference share repurchases was $ 3,861 at June 30, 2022.

Please refer to the Company's Annual Report on Form 10-K for the year ended December 31, 2021 for more details on preference shares.

MAIDEN HOLDINGS, LTD.

3 unchanged sentences

Shareholders' Equity (continued)

d) Accumulated Other Comprehensive Income

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 June 30, 2022 (December 31, 2021 - $ 74,245 ).

No repurchases were made during the three and six months ended June 30, 2022 and 2021 under the common share repurchase plan.

During the six months ended June 30, 2022, the Company repurchased 403,716 common shares (2021 - 799,548 ) at an average price per share of $ 2.50 (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.

There were no repurchases made during the three months ended June 30, 2022 and 2021.

d) Accumulated Other Comprehensive Income (Loss)

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

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

For the Three Months Ended June 30, 2022 Change in net unrealized gains on investment Foreign currency translation Total

Beginning balance $ ( 20,852 ) $ ( 3,930 ) $ ( 24,782 )

3 unchanged sentences

Ending balance, Maiden shareholders $ ( 45,266 ) $ 6,326 $ ( 38,940 )

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

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

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

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

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

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

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

For the Six Months Ended June 30, 2022 Change in net unrealized gains on investment Foreign currency translation Total

Beginning balance

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

Other comprehensive (loss) income before reclassifications ( 36,925 ) 15,848 ( 21,077 )

Amounts reclassified from AOCI to net income, net of tax

( 5,648 ) — ( 5,648 )

Net current period other comprehensive (loss) income ( 42,573 ) 15,848 ( 26,725 )

Ending balance, Maiden shareholders

$ ( 45,266 ) $ 6,326 $ ( 38,940 )

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

Beginning balance

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

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

Amounts reclassified from AOCI to net income, net of tax ( 5,025 ) — ( 5,025 )

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

Ending balance, Maiden shareholders

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

MAIDEN HOLDINGS, LTD.

3 unchanged sentences

Long-Term Debt

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.

At June 30, 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").

1 unchanged sentence

The Senior Notes are unsecured and unsubordinated obligations of the Company.

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

The following tables detail the issuances of Senior Notes outstanding at June 30, 2022 and December 31, 2021:

June 30, 2022 2016 Senior Notes 2013 Senior Notes Total

Principal amount

13 unchanged sentences

Effective interest rate 7.07 % 8.04 %

The interest expense incurred on the Senior Notes for the three months ended March 31, 2022 was $ 4,777 (2021 - $ 4,777 ), of which $ 1,342 was accrued at both March 31, 2022 and December 31, 2021, respectively.

The interest expense incurred on the Senior Notes for the three and six months ended June 30, 2022 was $ 4,776 and $ 9,553 , respectively (2021 - $ 4,776 and $ 9,553 , respectively), of which $ 1,342 was accrued at both June 30, 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 months ended March 31, 2022 was $ 55 (2021 - $ 54 ).

The amortization expense for the three and six months ended June 30, 2022 was $ 57 and $ 112 , respectively (2021 - $ 56 and $ 110 , respectively).

Under the terms of the 2013 Senior Notes, the 2013 Senior Notes can be redeemed, in whole or in part, at Maiden NA's option at any time and from time to time, until maturity at a redemption price equal to 100 % of the principal amount of the notes to be redeemed plus accrued but unpaid interest on the principal amount being redeemed to, but not including, the redemption date.

11 unchanged sentences

In the event that one or more of our reinsurers or retrocessionaires are unable to meet their obligations under these agreements, the Company would not realize the full value of the reinsurance recoverable balances.

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

For the Three Months Ended March 31, 2022 2021

The effect of ceded reinsurance on net premiums written and earned and on net loss and LAE for the six months ended June 30, 2022 and 2021 was as follows:

For the Six Months Ended June 30, 2022 2021

Premiums written

7 unchanged sentences

$ 11,565 $ 25,076

$ 1,122 $ 11,764

Gross loss and LAE

3 unchanged sentences

$ 4,591 $ ( 2,968 )

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.

The Company's reinsurance recoverable on unpaid losses balance as at June 30, 2022 was $ 554,846 (December 31, 2021 - $ 562,845 ) presented in the Condensed Consolidated Balance Sheets.

At June 30, 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 $ 67,633 at March 31, 2022 (December 31, 2021 - $ 69,006 ).

The reinsurance recoverable on unpaid losses due from Cavello under this retrocession agreement was $ 67,737 at June 30, 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 .

5 unchanged sentences

Consequently, cumulative adverse development subsequent to December 31, 2018 may result in significant losses from operations until periods when the deferred gain is recognized as a benefit to earnings.

As of March 31, 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).

As of June 30, 2022, the reinsurance recoverable on unpaid losses under the LPT/ADC Agreement was $ 486,397 while the deferred gain liability under the LPT/ADC Agreement was $ 41,397 (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 2025.

2 unchanged sentences

Related Party Transactions".

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

As of June 30, 2022, the amount of collateral required was $ 413,980 .

Under the terms of the LPT/ADC Agreement, the covered losses associated with the Commutation and Release Agreement with AmTrust are eligible to be covered but recoverable only when such losses are paid or settled by AII or its affiliates, provided such losses and other related amounts shall not exceed $ 312,786 .

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

Cavello's parent company, Enstar, has credit ratings of BBB from both Standard & Poor's and Fitch Ratings at June 30, 2022.

MAIDEN HOLDINGS, LTD.

16 unchanged sentences

The reserve for loss and LAE consists of:

March 31, 2022 December 31, 2021

June 30, 2022 December 31, 2021

Reserve for reported loss and LAE

5 unchanged sentences

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

For the Three Months Ended March 31, 2022 2021

For the Six Months Ended June 30, 2022 2021

Gross loss and LAE reserves, January 1

7 unchanged sentences

( 6,327 ) ( 18,361 )

4,591 ( 2,968 )

Net paid losses related to:

6 unchanged sentences

( 31,256 ) ( 11,177 )

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

Net loss and LAE reserves, June 30 720,261 1,109,041

Reinsurance recoverable on unpaid losses, June 30 554,846 565,549

Gross loss and LAE reserves, June 30 $ 1,275,107 $ 1,674,590

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

The favorable or unfavorable development reflects changes in management's best estimate of the ultimate losses under the relevant reinsurance policies after considerable review of changes in actuarial assessments.

During the three months ended March 31, 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.

The Company recognized adverse prior year loss development of $ 958 for the three months ended June 30, 2022 and favorable prior year loss development of $ 6,327 for the six months ended June 30, 2022 (2021 - favorable $ 12,807 and $ 18,361 , respectively).

In the Diversified Reinsurance segment, there was adverse prior year loss development of $ 826 for the three months ended June 30, 2022 and favorable prior year loss development of $ 1,385 for the six months ended June 30, 2022 (2021 - favorable $ 951 and $ 937 , respectively).

Prior year loss development for the six months ended June 30, 2022 was due to favorable reserve development in German Auto Programs partly offset by adverse development in European Capital Solutions that occurred in the second quarter of 2022.

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

MAIDEN HOLDINGS, LTD.

3 unchanged sentences

Reserve for Loss and Loss Adjustment Expenses (continued)

In the AmTrust Reinsurance segment, the net favorable prior year loss development was $ 5,074 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.

In the AmTrust Reinsurance segment, there was adverse prior year loss development of $ 132 for the three months ended June 30, 2022 and favorable prior year loss development of $ 4,942 for the six months ended June 30, 2022 (2021 - favorable $ 11,856 and $ 17,424 , respectively).

The net adverse prior year loss development for the three months ended June 30, 2022 was driven by modest unfavorable movements in General Liability and Commercial Auto Liability partly offset by continued favorable development in Workers Compensation.

The net favorable prior year loss development for the six months ended June 30, 2022 was primarily due to favorable development from Workers Compensation partly offset by deterioration in General Liability and to a lesser extent Commercial Auto.

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

The change in the deferred gain on retroactive reinsurance was $ 5,288 for the six months ended June 30, 2022 (2021 - $ 20,687 ).

This change included a decrease in the deferred gain liability and related reinsurance recoverable on unpaid losses under the LPT/ADC Agreement with Cavello of $ 4,463 for the six months ended June 30, 2022 (2021 - $ 20,687 ) due to favorable development on loss 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 June 30, 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 2025.

21 unchanged sentences

Under the Partial Termination Amendment, the ceding commission payable by Maiden Reinsurance for its remaining in-force business immediately prior to January 1, 2019 increased by five percentage points with respect to in-force remaining business (excluding Terminated Business) and related unearned premium as of January 1, 2019.

The Partial Termination Amendment resulted in Maiden Reinsurance returning $ 647,980 in unearned premium to AII, or $ 436,760 net of applicable ceding commission and brokerage as calculated during the second quarter of 2019.

Subsequently, on January 30, 2019, Maiden Reinsurance and AII agreed to terminate the remaining business subject to the AmTrust Quota Share on a run-off basis effective as of January 1, 2019.

1 unchanged sentence

(a) all losses incurred in Accident Year 2017 and Accident Year 2018 under California workers' compensation policies and as defined in the AmTrust Quota Share ("Commuted California Business");

and (b) all losses incurred in Accident Year 2018 under New York workers' compensation policies ("Commuted New York Business"), and together with the Commuted California Business ("Commuted Business") in exchange for the release and full discharge of Maiden Reinsurance's obligations to AII with respect to the Commuted Business.

The Commuted Business excludes any business classified by AII as Specialty Program or Specialty Risk business.

MAIDEN HOLDINGS, LTD.

3 unchanged sentences

Related Party Transactions (continued)

exchange for the release and full discharge of Maiden Reinsurance's obligations to AII with respect to the Commuted Business.

The Commuted Business excludes any business classified by AII as Specialty Program or Specialty Risk business.

Maiden Reinsurance paid $ 312,786 ("Commutation Payment"), which is the sum of the net ceded reserves in the amount of $ 330,682 with respect to the Commuted Business as of December 31, 2018 less payments in the amount of $ 17,896 made by Maiden Reinsurance with respect to the Commuted Business from January 1, 2019 through July 31, 2019.

10 unchanged sentences

Thereafter, on January 30, 2019, Maiden Reinsurance, AEL and AIU DAC agreed to terminate the European Hospital Liability Quota Share on a run-off basis effective as of January 1, 2019.

The table below shows the effect of both of these quota share arrangements with AmTrust on the Company's Condensed Consolidated Income Statements for the three months ended March 31, 2022 and 2021, respectively:

For the Three Months Ended March 31,

The table below shows the effect of both of these quota share arrangements with AmTrust on the Company's Condensed Consolidated Income Statements for the three and six months ended June 30, 2022 and 2021, respectively:

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

2022 2021 2022 2021

Gross and net premiums written $ ( 2,809 ) $ ( 1,757 ) $ ( 17,715 ) $ ( 4,219 )

9 unchanged sentences

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

• by lending funds of $ 167,975 at March 31, 2022 and December 31, 2021 pursuant to a loan agreement entered into between those parties.

• by lending funds of $ 167,975 at June 30, 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 $ 879 for the three months ended March 31, 2022 (2021 - $ 860 ) and the effective yield was 2.1 % for the period (2021 - 2.0 %).

Interest income on the loan was $ 1,158 and $ 2,037 for the three and six months ended June 30, 2022, respectively (2021 - $ 866 and $ 1,726 , respectively) and the effective yield was 2.8 % and 2.4 % for the respective periods (2021 - 2.1 % and 2.1 %).

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

6 unchanged sentences

AmTrust subsidiaries.

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

The amount of the collateral at June 30, 2022 was $ 116,409 (December 31, 2021 - $ 246,874 ) and the accrued interest was $ 444 (December 31, 2021 - $ 1,171 ).

Please refer to "Note 4.

1 unchanged sentence

• on January 11, 2019, a portion of the existing Trust Accounts used for collateral on the AmTrust Quota Share were converted to a funds withheld arrangement.

The Company transferred $ 575,000 to AmTrust as a funds withheld receivable which currently has an annual interest rate of 1.8 %, subject to annual adjustment.

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

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 ).

The Company transferred $ 575,000 to AmTrust as a funds withheld receivable which has an annual interest rate for 2022 of 2.1 %, subject to annual adjustment.

The annual interest rate was 1.80 % for 2021.

At June 30, 2022, the funds withheld balance was $ 575,000 (December 31, 2021 - $ 575,000 ) and the accrued interest was $ 5,988 (December 31, 2021 - $ 2,609 ).

The interest income on the funds withheld receivable was $ 3,436 and $ 5,988 for the three and six months ended June 30, 2022, respectively (2021 - $ 2,580 and $ 5,132 , respectively).

Pursuant to the terms of the LPT/ADC Agreement, Maiden Reinsurance, Cavello and AmTrust and certain of its affiliated companies entered into a Master Collateral Agreement (“MCA”) to define and enable the operation of collateral provided under the AmTrust Quota Share.

22 unchanged sentences

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

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

For AEL, the amount of the collateral held in reinsurance trust accounts at June 30, 2022 was $ 215,728 (December 31, 2021 - $ 244,488 ) and the accrued interest was $ 1,404 (December 31, 2021 - $ 1,273 ).

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

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 ).

At June 30, 2022, the amount of funds withheld was $ 23,408 (December 31, 2021 - $ 26,460 ) and the accrued interest was $ 184 (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 $ 26 for the three months ended March 31, 2022 (2021 - $ 37 ).

The interest income on the funds withheld receivable was $ 30 and $ 56 for the three and six months ended June 30, 2022, respectively (2021 - $ 37 and $ 74 , respectively).

Brokerage Agreement

Effective July 1, 2007, the Company entered into a reinsurance brokerage agreement with AII Reinsurance Broker Ltd.

Effective July 1, 2007, the Company had a reinsurance brokerage agreement with AII Reinsurance Broker Ltd.

("AIIB"), a wholly owned subsidiary of AmTrust.

2 unchanged sentences

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

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.

3 unchanged sentences

Related Party Transactions (continued)

Maiden Reinsurance had $ 41 and $( 19 ) of reinsurance brokerage expense for the three and six months ended June 30, 2022 (2021 - $ 79 and $ 148 , respectively) and deferred reinsurance brokerage of $ 944 at June 30, 2022 (December 31, 2021 - $ 1,147 ) as a result of this agreement.

Asset Management Agreement

2 unchanged sentences

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

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

The Company recorded $ 104 and $ 230 of investment management fees for the three and six months ended June 30, 2022, respectively (2021 - $ 222 and $ 494 , respectively) under this agreement.

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

3 unchanged sentences

683 Capital Partners, LP (“683 Partners”)

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

At June 30, 2022, 683 Partners and its affiliates own or control approximately 5.0 % 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 $ 32,861 were managed by 683 Capital under this agreement at March 31, 2022 (December 31, 2021 - $ 32,929 ).

Hedge fund investments of $ 16,884 were managed by 683 Capital under this agreement at June 30, 2022 (December 31, 2021 - $ 32,929 ) and reflects investment results through that date along with a reduction in the amount invested under the 683 LP Agreement during the three months ended June 30, 2022.

Commitments, Contingencies and Guarantees

1 unchanged sentence

a) Concentrations of Credit Risk

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.

At June 30, 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 paid and unpaid losses and funds withheld receivable.

Please refer to " Note 8.

9 unchanged sentences

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

Best at March 31, 2022.

Best at June 30, 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 March 31, 2022 will be fully collectible.

The Company believes these balances as at June 30, 2022 will be fully collectible.

b) Investment Commitments and Related Financial Guarantees

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 ).

The Company's unfunded commitments on other investments is $ 61,332 at June 30, 2022 (December 31, 2021 - $ 68,262 ).

The Company's unfunded commitments on equity method investments was $ 17,622 at June 30, 2022 (December 31, 2021 - $ 25,950 ).

The Company's unfunded commitments on private equity securities at June 30, 2022 was $ 20,506 (December 31, 2021 - $ 27,415 ).

MAIDEN HOLDINGS, LTD.

3 unchanged sentences

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

The Company's unfunded commitments on other investments at June 30, 2022 and December 31, 2021 were as follows:

June 30, 2022 December 31, 2021

Fair Value % of Total Fair Value % of Total

9 unchanged sentences

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

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.

As discussed above, at June 30, 2022, guarantees of $ 35,203 (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.

4 unchanged sentences

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 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.

This amount of $ 377 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 June 30, 2022 (December 31, 2021 - $ 473 ).

The Company's weighted-average remaining lease term is approximately 2.3 years at June 30, 2022.

d) Legal Proceedings

48 unchanged sentences

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

For the Three Months Ended March 31,

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

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

2022 2021 2022 2021

Net income (loss) $ 1,062 $ 8,112 $ ( 887 ) $ 17,398

Gain from repurchase of preference shares - Series A, C and D 24,690 18,714 28,233 81,164

5 unchanged sentences

Share options and restricted share units (2)

1,867 5,351 2,711 4,382

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

5 unchanged sentences

Share Compensation and Pension Plans" in the Notes to Consolidated Financial Statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2021 for the terms and conditions of securities that could potentially be dilutive in the future.

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.

For the three and six months ended June 30, 2022, there were 1,867 and 2,711 potentially dilutive securities (2021 - 5,351 and 4,382 , respectively).

The Company recognized an income tax benefit of $ 713 and income tax expense of $ 542 for the three and six months ended June 30, 2022, respectively, compared to an income tax benefit of $ 257 and $ 208 for the same respective periods in 2021.

The effective tax rate on the Company's net 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.

3 unchanged sentences

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