What changed in this filing

/stocks — the workspaceLOADING

Item 1. Financial Statements

2023-11-08 compared with 2023-08-08 · 235 added, 205 removed, 1293 unchanged (25% of the section changed)

4 unchanged sentences

dollars, except share and per share data)

September 30,

2023 December 31,

68 unchanged sentences

dollars, except per share data)

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

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

2023 2022 2023 2022

7 unchanged sentences

12,479 12,251 32,520 23,816

Other insurance revenue, net 78 469 19 520

Other insurance (expense) revenue, net ( 16 ) 368 3 888

Net investment income

9,048 6,637 29,111 20,871

Net realized and unrealized investment gains 1,145 2,111 2,150 4,420

Net realized and unrealized investment gains (losses) 244 ( 1,572 ) 2,394 2,848

Total revenues

8 unchanged sentences

4,814 4,833 13,411 14,498

Foreign exchange and other losses (gains) 2,621 ( 6,586 ) 5,437 ( 10,535 )

Foreign exchange and other (gains) losses ( 4,594 ) ( 8,586 ) 843 ( 19,121 )

Total expenses

27,503 25,562 89,011 54,876

(Loss) income before income taxes and interest in income (loss) of equity method investments ( 7,930 ) 3,390 ( 19,235 ) 1,425

Loss before income taxes and interest in income (loss) of equity method investments ( 5,748 ) ( 7,878 ) ( 24,983 ) ( 6,453 )

income tax (benefit) expense ( 31 ) ( 91 ) ( 253 ) 451

Interest in income (loss) of equity method investments 2,190 ( 373 ) 6,942 ( 2,143 )

Net (loss) income ( 2,933 ) 1,062 ( 14,261 ) ( 887 )

Net loss ( 3,527 ) ( 8,160 ) ( 17,788 ) ( 9,047 )

Gain from repurchase of preference shares — — — 28,233

7 unchanged sentences

(in thousands of U.S.

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

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

2023 2022 2023 2022

Net (loss) income $ ( 2,933 ) $ 1,062 $ ( 14,261 ) $ ( 887 )

Net loss $ ( 3,527 ) $ ( 8,160 ) $ ( 17,788 ) $ ( 9,047 )

Other comprehensive income (loss)

1 unchanged sentence

Net unrealized holdings gains on equity method investments arising during period — — — 4,414

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

Adjustment for reclassification of net realized gains recognized in net loss ( 3 ) ( 48 ) ( 3 ) ( 5,696 )

Foreign currency translation adjustment ( 2,075 ) 2,246 ( 741 ) 18,094

Other comprehensive income (loss), before tax 1,613 ( 14,272 ) 4,117 ( 26,968 )

Income tax benefit (expense) related to components of other comprehensive income (loss) 11 114 ( 19 ) 243

Other comprehensive income (loss), after tax 1,624 ( 14,158 ) 4,098 ( 26,725 )

Other comprehensive (loss) income, before tax ( 1,740 ) ( 12,666 ) 2,377 ( 39,634 )

Income tax (expense) benefit related to components of other comprehensive (loss) income ( 17 ) 53 ( 36 ) 296

Other comprehensive (loss) income, after tax ( 1,757 ) ( 12,613 ) 2,341 ( 39,338 )

Comprehensive loss $ ( 5,284 ) $ ( 20,773 ) $ ( 15,447 ) $ ( 48,385 )

3 unchanged sentences

(in thousands of U.S.

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

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

2023 2022 2023 2022

37 unchanged sentences

Opening allowance for expected credit losses — — ( 5,513 ) —

Net (loss) income ( 2,933 ) 1,062 ( 14,261 ) ( 887 )

Net loss ( 3,527 ) ( 8,160 ) ( 17,788 ) ( 9,047 )

Gain from repurchase of preference shares — — — 28,233

13 unchanged sentences

(in thousands of U.S.

For the Six Months Ended June 30, 2023 2022

For the Nine Months Ended September 30, 2023 2022

Cash flows from operating activities

38 unchanged sentences

Effect of exchange rate changes on foreign currency cash, restricted cash and equivalents ( 263 ) ( 2,152 )

Net decrease in cash, restricted cash and cash equivalents ( 19,162 ) ( 4,619 )

Net (decrease) increase in cash, restricted cash and cash equivalents ( 17,094 ) 6,411

Cash, restricted cash and cash equivalents, beginning of period 46,624 66,087

57 unchanged sentences

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 previous OTTI methodology.

Credit losses relating to AFS debt securities will be recorded through an allowance for credit losses rather than under the previous 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.

23 unchanged sentences

Write-offs of accrued interest receivable balances are recognized in net investment gains and losses in the period in which they are deemed uncollectible.

Based on the Company's analysis, there was no allowance for expected credit losses recognized on AFS securities held at June 30, 2023.

Based on the Company's analysis, there was no allowance for expected credit losses recognized on AFS securities held at September 30, 2023.

Credit Losses - Other Investments

The Company's investments in direct lending entities are carried at cost less an allowance for expected credit losses, with any indication of credit loss recognized in net income or loss when determined to be needed from the Company's analysis of expected future cash flows.

As of June 30, 2023, the total allowance for expected credit losses on the Company's investment in direct lending entities was $ 1,023 .

As of September 30, 2023, the total allowance for expected credit losses on the Company's investment in direct lending entities was $ 1,023 .

Please see "Note 5(d).

16 unchanged sentences

The Company does not have a history of significant write-offs.

As of June 30, 2023, the total allowance for expected credit losses on the Company's reinsurance recoverable balance was $ 4,530 which is discussed in more detail in "Note 8.

As of September 30, 2023, the total allowance for expected credit losses on the Company's reinsurance recoverable balance was $ 4,289 which is discussed in more detail in "Note 8.

Reinsurance" .

5 unchanged sentences

The Company does not have a history of significant write-offs.

As of June 30, 2023, the total allowance for expected credit losses on the Company's reinsurance balances receivable was $ 196 .

As of September 30, 2023, the total allowance for expected credit losses on the Company's reinsurance balances receivable was $ 158 .

Credit Losses - Funds Withheld Receivable

4 unchanged sentences

The Company does not have a history of significant write-offs.

As of June 30, 2023, the total allowance for expected credit losses on the Company's funds withheld receivable was $ 19 .

As of September 30, 2023, the total allowance for expected credit losses on the Company's funds withheld receivable was $ 17 .

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 (loss) income for the three months ended June 30, 2023 and 2022, respectively:

For the Three Months Ended June 30, 2023 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 loss for the three months ended September 30, 2023 and 2022, respectively:

For the Three Months Ended September 30, 2023 Diversified Reinsurance AmTrust Reinsurance Total

Gross premiums written

4 unchanged sentences

$ 7,207 $ 5,272 $ 12,479

Other insurance revenue

Other insurance expense ( 16 ) — ( 16 )

Net loss and LAE ( 4,142 ) ( 11,014 ) ( 15,156 )

7 unchanged sentences

Interest and amortization expenses

Foreign exchange and other losses, net ( 2,621 )

Foreign exchange and other gains, net 4,594

Other general and administrative expenses

7 unchanged sentences

Segment Information (continued)

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

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

Gross premiums written

11 unchanged sentences

( 1,901 ) ( 521 ) ( 2,422 )

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

Reconciliation to net income

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

Underwriting income (loss) $ 40 $ ( 12,667 ) ( 12,627 )

Reconciliation to net loss

Net investment income and net realized and unrealized investment losses 5,065

Interest and amortization expenses

3 unchanged sentences

Interest in loss from equity method investments ( 373 )

Net income $ 1,062

The following tables summarize the underwriting results of our reportable segments and the reconciliation of our reportable segments' underwriting results to consolidated net loss for the six months ended June 30, 2023 and 2022, respectively:

For the Six Months Ended June 30, 2023 Diversified Reinsurance AmTrust Reinsurance Total

Net loss $ ( 8,160 )

The following tables summarize the underwriting results of our reportable segments and the reconciliation of our reportable segments' underwriting results to consolidated net loss for the nine months ended September 30, 2023 and 2022, respectively:

For the Nine Months Ended September 30, 2023 Diversified Reinsurance AmTrust Reinsurance Total

Gross premiums written

25 unchanged sentences

Segment Information (continued)

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

For the Nine Months Ended September 30, 2022 Diversified Reinsurance AmTrust Reinsurance Total

Gross premiums written

20 unchanged sentences

Net loss $ ( 9,047 )

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, 2023 and December 31, 2022:

June 30, 2023 Diversified Reinsurance AmTrust Reinsurance Total

The following tables summarize the financial position of the Company's reportable segments including the reconciliation to the Company's consolidated total assets at September 30, 2023 and December 31, 2022:

September 30, 2023 Diversified Reinsurance AmTrust Reinsurance Total

Total assets - reportable segments

12 unchanged sentences

Segment Information (continued)

The following tables set forth financial information relating to net premiums written by major line of business and reportable segment for the three and six months ended June 30, 2023 and 2022:

For the Three Months Ended June 30, 2023 2022

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, 2023 and 2022:

For the Three Months Ended September 30, 2023 2022

Net premiums written

8 unchanged sentences

Specialty Risk and Extended Warranty

2,058 ( 126 )

Total AmTrust Reinsurance

2 unchanged sentences

$ 8,625 $ 5,222

For the Six Months Ended June 30, 2023 2022

For the Nine Months Ended September 30, 2023 2022

Net premiums written Total Total

17 unchanged sentences

Segment Information (continued)

The following tables set forth financial information for net premiums earned by major line of business and reportable segment for the three and six months ended June 30, 2023 and 2022:

For the Three Months Ended June 30, 2023 2022

The following tables set forth financial information for net premiums earned by major line of business and reportable segment for the three and nine months ended September 30, 2023 and 2022:

For the Three Months Ended September 30, 2023 2022

Net premiums earned

11 unchanged sentences

$ 12,479 $ 12,251

For the Six Months Ended June 30, 2023 2022

For the Nine Months Ended September 30, 2023 2022

Net premiums earned Total Total

7 unchanged sentences

Specialty Risk and Extended Warranty

Total AmTrust Reinsurance

10,799 18,066

Total AmTrust Reinsurance

Total Net Premiums Earned

10 unchanged sentences

a) Fixed Maturities

The amortized cost, gross unrealized gains and losses, and fair value of fixed maturities at June 30, 2023 and December 31, 2022 are as follows:

June 30, 2023 Original or amortized cost Gross unrealized gains Gross unrealized losses Fair value

The amortized cost, gross unrealized gains and losses, and fair value of fixed maturities at September 30, 2023 and December 31, 2022 are as follows:

September 30, 2023 Original or amortized cost Gross unrealized gains Gross unrealized losses Fair value

treasury bonds

23 unchanged sentences

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

June 30, 2023 Amortized cost Fair value

September 30, 2023 Amortized cost Fair value

Due in one year or less

17 unchanged sentences

Less than 12 Months 12 Months or More Total

June 30, 2023 Fair

September 30, 2023 Fair

value Unrealized

12 unchanged sentences

$ 4,726 $ ( 7 ) $ 209,400 $ ( 12,789 ) $ 214,126 $ ( 12,796 )

At June 30, 2023, there were 79 securities in an unrealized loss position with a fair value of $ 272,270 and unrealized losses of $ 13,132 .

At September 30, 2023, there were 75 securities in an unrealized loss position with a fair value of $ 214,126 and unrealized losses of $ 12,796 .

Of these securities in an unrealized loss position, there were 70 securities in our portfolio that have been in an unrealized loss position for twelve months or greater with a fair value of $ 209,400 and unrealized losses of $ 12,789 .

30 unchanged sentences

Although these securities are not analyzed for credit losses, they are evaluated for impairment based on the Company's intention to sell and likely requirement to sell.

Based on the Company's analysis at June 30, 2023 and 2022, respectively, the Company did not recognize any impairment on its AFS fixed maturity securities as the Company expects the amortized cost basis will ultimately be recovered based on projected cash flows as the related securities approach maturity.

Based on the Company's analysis at September 30, 2023 and 2022, respectively, the Company did not recognize any impairment on its AFS fixed maturity securities as the Company expects the amortized cost basis will ultimately be recovered based on projected cash flows as the related securities approach maturity.

The Company continues to monitor the credit quality of the AFS securities to assess if it is probable that it will receive contractual or estimated cash flows in the form of principal and interest.

Therefore, as the unrealized losses were due to non-credit factors, there was no allowance recorded for expected credit losses on AFS securities for the three and six months ended June 30, 2023.

Therefore, as the unrealized losses were due to non-credit factors, there was no allowance recorded for expected credit losses on AFS securities for the three and nine months ended September 30, 2023.

MAIDEN HOLDINGS, LTD.

3 unchanged sentences

Investments (continued)

The following tables summarize the credit ratings of our fixed maturities as at June 30, 2023 and December 31, 2022:

June 30, 2023 Amortized cost Fair value % of Total

The following tables summarize the credit ratings of our fixed maturities as at September 30, 2023 and December 31, 2022:

September 30, 2023 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 June 30, 2023 and December 31, 2022:

June 30, 2023 December 31, 2022

The table shows the composition of the Company's other investments as of September 30, 2023 and December 31, 2022:

September 30, 2023 December 31, 2022

Carrying value % of Total Carrying value % of Total

5 unchanged sentences

Total other investments $ 166,222 100.0 % $ 148,753 100.0 %

The Company's investments in direct lending entities of $ 61,400 at June 30, 2023 (December 31, 2022 - $ 56,087 ) are carried at cost less an allowance for expected credit losses, with any indication of credit loss recognized in net income when determined.

An allowance for expected credit losses of $ 1,023 was reported on the investments in direct lending entities as at June 30, 2023 and recorded in opening retained earnings on January 1, 2023.

The Company's investments in direct lending entities of $ 65,000 at September 30, 2023 (December 31, 2022 - $ 56,087 ) are carried at cost less an allowance for expected credit losses, with any indication of credit loss recognized in net income when determined.

An allowance for expected credit losses of $ 1,023 was reported on the investments in direct lending entities as at September 30, 2023 and recorded in opening retained earnings on January 1, 2023.

Please see "Note 5(d).

11 unchanged sentences

There is no active market for these investments.

The following table provides the cost and fair values of the equity securities held at June 30, 2023 and December 31, 2022:

June 30, 2023 December 31, 2022

The following table provides the cost and fair values of the equity securities held at September 30, 2023 and December 31, 2022:

September 30, 2023 December 31, 2022

Cost Fair Value Cost Fair Value

Publicly traded equity investments in common stocks $ 90 $ 84 $ 559 $ 386

Privately held common stocks $ 33,223 $ 32,636 $ 32,775 $ 32,290

Privately held preferred stocks 8,175 12,953 7,175 10,945

Publicly traded equity investments in common stocks 90 58 559 386

Total equity securities $ 41,488 $ 45,647 $ 40,509 $ 43,621

1 unchanged sentence

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

The table below shows the carrying value of the Company's equity method investments as of June 30, 2023 and December 31, 2022:

June 30, 2023 December 31, 2022

The table below shows the carrying value of the Company's equity method investments as of September 30, 2023 and December 31, 2022:

September 30, 2023 December 31, 2022

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 and six months ended June 30, 2023 and 2022:

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

Net investment income was derived from the following sources for the three and nine months ended September 30, 2023 and 2022:

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

2023 2022 2023 2022

16 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 investment gains (losses) included in the Condensed Consolidated Statements of Income for the three and six months ended June 30, 2023 and 2022:

For the Three Months Ended June 30, 2023 Gross gains Gross losses Net

The following tables show the net realized and unrealized investment gains (losses) included in the Condensed Consolidated Statements of Income for the three and nine months ended September 30, 2023 and 2022:

For the Three Months Ended September 30, 2023 Gross gains Gross losses Net

Fixed maturities

3 unchanged sentences

Net realized and unrealized investment gains (losses) $ 1,393 $ ( 1,149 ) $ 244

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

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

Fixed maturities

4 unchanged sentences

Net realized and unrealized investment gains (losses) $ 1,201 $ ( 2,773 ) $ ( 1,572 )

For the Six Months Ended June 30, 2023 Gross gains Gross losses Net

For the Nine Months Ended September 30, 2023 Gross gains Gross losses Net

Fixed maturities

4 unchanged sentences

Net realized and unrealized investment gains (losses) $ 6,746 $ ( 4,352 ) $ 2,394

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

For the Nine Months Ended September 30, 2022 Gross gains Gross losses Net

Fixed maturities

4 unchanged sentences

Net realized and unrealized investment gains (losses) $ 8,530 $ ( 5,682 ) $ 2,848

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

The unrealized gains recognized in net loss or income for the three and six months ended June 30, 2023 and 2022 for investments held at June 30, 2023 and 2022, respectively, were as follows:

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

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

Unrealized (losses) gains recognized for equity securities still held at reporting date for the three and nine months ended September 30, 2023 and 2022, respectively, included:

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

2023 2022 2023 2022

Net gains recognized for equity securities $ 453 $ 3,338 $ 1,099 $ 2,851

Net (losses) gains recognized for equity securities $ ( 52 ) $ 154 $ 1,047 $ 3,005

Net gains recognized for equity securities divested — ( 111 ) ( 186 ) ( 111 )

Unrealized gains recognized for equity securities still held at reporting date $ 443 $ 3,338 $ 913 $ 2,851

Proceeds from sales of fixed maturity investments were $ 43,829 and $ 44,783 in the three and six months ended June 30, 2023 (2022 - $ 2,934 and $ 104,538 , respectively).

Net unrealized losses at June 30, 2023 and December 31, 2022 included:

June 30, 2023 December 31, 2022

Fixed maturity investments $ ( 13,129 ) $ ( 15,912 )

Total net unrealized losses ( 13,129 ) ( 15,912 )

Unrealized (losses) gains recognized for equity securities still held at reporting date $ ( 52 ) $ 43 $ 861 $ 2,894

Proceeds from sales of fixed maturity investments were $ 19,343 and $ 64,126 for the three and nine months ended September 30, 2023 (2022 - $ 35,107 and $ 139,645 , respectively).

Net unrealized losses included in accumulated other comprehensive income ("AOCI") were as follows at September 30, 2023 and December 31, 2022, respectively:

September 30, 2023 December 31, 2022

Net unrealized losses on fixed maturity investments $ ( 12,794 ) $ ( 15,912 )

Deferred income tax

10 unchanged sentences

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

The fair values of restricted assets at June 30, 2023 and December 31, 2022 are:

June 30, 2023 December 31, 2022

The fair values of restricted assets at September 30, 2023 and December 31, 2022 are:

September 30, 2023 December 31, 2022

Restricted cash – third party agreements $ 5,561 $ 13,122

55 unchanged sentences

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

The following describes the valuation techniques used by the Company to determine the fair value of financial instruments that are measured at fair value on a recurring basis held at June 30, 2023 and December 31, 2022.

government and U.S.

64 unchanged sentences

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

At June 30, 2023 and December 31, 2022, the Company classified its financial instruments measured at fair value on a recurring basis in the following valuation hierarchy:

June 30, 2023 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 September 30, 2023 and December 31, 2022, the Company classified its financial instruments measured at fair value on a recurring basis in the following valuation hierarchy:

September 30, 2023 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

35 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 98.2 % and 98.5 % of our fixed maturities at June 30, 2023 and December 31, 2022, respectively.

The Pricing Service was utilized to estimate fair value measurements for 98.1 % and 98.5 % of our fixed maturities at September 30, 2023 and December 31, 2022, respectively.

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

1 unchanged sentence

treasury bonds generally do not trade actively on a daily basis, the Pricing Service prepares estimates of fair value measurements using relevant market data, benchmark curves, sector groupings and matrix pricing and these have been classified as Level 2 within the fair value hierarchy.

At June 30, 2023 and December 31, 2022, approximately 1.8 % and 1.5 %, respectively, of our fixed maturities were valued using the market approach.

At June 30, 2023, one security or $ 5,073 (December 31, 2022 - one security or $ 4,764 ) of our fixed maturity investment portfolio classified as Level 2 in the table above was 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, 2023 and December 31, 2022, the Company has not adjusted any pricing provided to it based on the review performed by its investment managers.

There were no transfers to or from Level 3 during the six months ended June 30, 2023 and 2022.

At September 30, 2023 and December 31, 2022, approximately 1.9 % and 1.5 %, respectively, of our fixed maturities were valued using the market approach.

At September 30, 2023, one security or $ 5,022 (December 31, 2022 - one security or $ 4,764 ) of our fixed maturity investment portfolio classified as Level 2 in the table above was 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, 2023 and December 31, 2022, the Company has not adjusted any pricing provided to it based on the review performed by its investment managers.

There were no transfers to or from Level 3 during the nine months ended September 30, 2023 and 2022.

At June 30, 2023, the Company holds Level 3 financial instruments which include privately held equity investments of $ 21,398 (December 31, 2022 - $ 18,806 ) which are included in total investments and an underwriting-related derivative liability of $ 3,984 (December 31, 2022 - $ 14,559 ) on a reinsurance contract written by GLS which is included in accrued expenses and other liabilities.

At September 30, 2023, the Company holds Level 3 financial instruments which consist of privately held investments of $ 22,998 (December 31, 2022 - $ 18,806 ) and an underwriting-related derivative liability of $ 3,984 (December 31, 2022 - $ 14,559 ) on a reinsurance contract written by GLS which is included in accrued expenses and other liabilities.

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

2 unchanged sentences

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

The following table provides a summary of quantitative information regarding the significant unobservable inputs used in determining the fair value of other investments measured at fair value on a recurring basis under the Level 3 classification at June 30, 2023:

Fair Value Valuation Technique Unobservable Inputs Range

3 unchanged sentences

Underwriting-related derivative liability $ 3,984 Discounted cash flows Duration matched discount rates 5.0 % to 6.0 %

The following table shows the reconciliation of 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, 2023 and 2022.

The following table shows the reconciliation of beginning and ending balances for investments measured at fair value on a recurring basis using Level 3 inputs for the three and nine months ended September 30, 2023 and 2022.

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 June 30, For the Six Months Ended June 30,

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

2023 2022 2023 2022

11 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 June 30, 2023, the carrying values of cash equivalents (including restricted amounts), accrued investment income, reinsurance balances receivable, loan to related party, and certain other assets and liabilities approximate fair values due to their inherent short duration.

At September 30, 2023, the carrying values of cash equivalents (including restricted amounts), accrued investment income, reinsurance balances receivable, loan to related party, 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.

4 unchanged sentences

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

The following table presents the respective carrying value and fair value for the Senior Notes as at June 30, 2023 and December 31, 2022:

June 30, 2023 December 31, 2022

The following table presents the respective carrying value and fair value for the Senior Notes as at September 30, 2023 and December 31, 2022:

September 30, 2023 December 31, 2022

Carrying Value Fair Value Carrying Value Fair Value

7 unchanged sentences

On May 3, 2023 at its Annual General Meeting of Shareholders, the Company's common shareholders approved the increase in the authorized share capital of the Company from $ 1,500 divided into 150,000,000 shares of par value $ 0.01 each, to $ 2,000 divided into 200,000,000 shares of par value $ 0.01 each.

At June 30, 2023, the aggregate authorized share capital of the Company is 200,000,000 shares from which 149,726,105 common shares were issued, of which 101,605,815 common shares are outstanding, and 48,120,290 shares are treasury shares.

The remaining 50,273,895 shares are undesignated at June 30, 2023.

At June 30, 2023, 1,020,027 common shares will be issued and outstanding upon vesting of restricted shares.

At September 30, 2023, the aggregate authorized share capital of the Company is 200,000,000 shares from which 149,726,105 common shares were issued, of which 101,085,340 common shares are outstanding, and 48,640,765 shares are treasury shares (please see Note 6.

(b) Treasury Shares below for additional information).

The remaining 50,273,895 shares are undesignated at September 30, 2023.

At September 30, 2023, 981,277 common shares will be issued and outstanding upon vesting of restricted shares.

b) 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.

During the three and six months ended June 30, 2023, Maiden Reinsurance repurchased 299,630 common shares at an average price per share of $ 2.07 under the Company's share repurchase plan (2022 - none).

The Company has a remaining authorization of $ 73,626 for common share repurchases at June 30, 2023 (December 31, 2022 - $ 74,245 ).

During the six months ended June 30, 2023, the Company also repurchased 128,731 common shares (2022 - 403,716 ) at an average price per share of $ 2.25 (2022 - $ 2.50 ) from employees, which represent tax withholding in respect of tax obligations on the vesting of both non-performance-based and discretionary performance-based restricted shares.

Treasury shares include 41,738,978 common shares owned by Maiden Reinsurance which includes 41,439,348 shares issued as part of the exchange for preference shares held ("Exchange") and 299,630 shares directly purchased on the open market by Maiden Reinsurance which are not treated as outstanding common shares on the Condensed Consolidated Balance Sheet at June 30, 2023.

During the three and nine months ended September 30, 2023, Maiden Reinsurance repurchased 520,475 and 820,105 common shares, respectively, at an average price per share of $ 1.86 and $ 1.93 , respectively, under the Company's share repurchase plan (2022 - none ).

The Company has a remaining authorization of $ 72,659 for common share repurchases at September 30, 2023 (December 31, 2022 - $ 74,245 ).

During the nine months ended September 30, 2023, the Company also repurchased 128,731 common shares (2022 - 403,716 ) at an average price per share of $ 2.25 (2022 - $ 2.50 ) from employees, which represent tax withholding in respect of tax obligations on the vesting of both non-performance-based and discretionary performance-based restricted shares.

Treasury shares include 42,259,453 common shares owned by Maiden Reinsurance consisting of 41,439,348 shares issued as part of the exchange for preference shares held ("Exchange") and 820,105 shares directly purchased on the open market by Maiden Reinsurance which are not treated as outstanding common shares on the Condensed Consolidated Balance Sheet at September 30, 2023.

Please see further information on the Exchange and related preference share repurchases in the Annual Report on Form 10-K for the year ended December 31, 2022, filed with the SEC on March 15, 2023.

The table below includes the total number of treasury shares outstanding at June 30, 2023 and December 31, 2022:

June 30, 2023 December 31, 2022

T he table below includes the total number of treasury shares outstanding at September 30, 2023 and December 31, 2022, respectively:

September 30, 2023 December 31, 2022

Number of shares held by Maiden Reinsurance treated as treasury shares 42,259,453 41,439,348

6 unchanged sentences

Shareholders' Equity (continued)

c) Accumulated Other Comprehensive Loss ("AOCI")

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

For the Three Months Ended June 30, 2023 Change in net unrealized gains on investment Foreign currency translation Total

For the Three Months Ended September 30, 2023 Change in net unrealized gains on investment Foreign currency translation Total

Beginning balance $ ( 12,904 ) $ ( 24,232 ) $ ( 37,136 )

Other comprehensive income before reclassifications 858 766 1,624

Net current period other comprehensive income 858 766 1,624

Other comprehensive income (loss) before reclassifications 321 ( 2,075 ) ( 1,754 )

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

Net current period other comprehensive income (loss) 318 ( 2,075 ) ( 1,757 )

Ending balance, Maiden shareholders $ ( 12,586 ) $ ( 26,307 ) $ ( 38,893 )

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

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

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

3 unchanged sentences

Ending balance, Maiden shareholders $ ( 60,125 ) $ 8,572 $ ( 51,553 )

For the Six Months Ended June 30, 2023 Change in net unrealized gains on investment Foreign currency translation Total

For the Nine Months Ended September 30, 2023 Change in net unrealized gains on investment Foreign currency translation Total

Beginning balance

$ ( 15,668 ) $ ( 25,566 ) $ ( 41,234 )

Other comprehensive income before reclassifications 2,764 1,334 4,098

Net current period other comprehensive income 2,764 1,334 4,098

Other comprehensive income (loss) before reclassifications 3,085 ( 741 ) 2,344

Amounts reclassified from AOCI to net income, net of tax

( 3 ) — ( 3 )

Net current period other comprehensive income (loss) 3,082 ( 741 ) 2,341

Ending balance, Maiden shareholders

$ ( 12,586 ) $ ( 26,307 ) $ ( 38,893 )

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

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

Beginning balance

10 unchanged sentences

Long-Term Debt

At June 30, 2023 and December 31, 2022, 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 September 30, 2023 and December 31, 2022, 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 June 30, 2023 and December 31, 2022:

June 30, 2023 2016 Senior Notes 2013 Senior Notes Total

The following tables detail the issuances of Senior Notes outstanding at September 30, 2023 and December 31, 2022:

September 30, 2023 2016 Senior Notes 2013 Senior Notes Total

Principal amount

13 unchanged sentences

Effective interest rate 7.07 % 8.04 %

Total interest and amortization expense incurred on the Senior Notes for the three and six months ended June 30, 2023 was $ 4,813 and $ 8,637 , respectively (2022 - $ 4,833 and $ 9,665 , respectively), of which $ 1,342 was accrued as interest payable at both June 30, 2023 and December 31, 2022, respectively.

Total interest and amortization expense incurred on the Senior Notes for the three and nine months ended September 30, 2023 was $ 4,814 and $ 13,451 , respectively (2022 - $ 4,833 and $ 14,498 , respectively), of which $ 1,342 was accrued as interest payable at both September 30, 2023 and December 31, 2022, respectively.

The issuance costs related to the Senior Notes were capitalized and are amortized over the effective life of the Senior Notes using the effective interest method of amortization.

4 unchanged sentences

On May 3, 2023, 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 Senior Notes from time to time at market prices in open market purchases or as may be privately negotiated.

During the three and six months ended June 30, 2023, the Company repurchased 5,567 notes of the 2013 Senior Notes at an average price per unit of $ 17.10 for a total cost of $ 95 .

Total interest and amortization expenses were partly offset by a gain of $ 40 that was realized on the repurchase of the 2013 Senior Notes during the three and six months ended June 30, 2023.

The Company has a remaining authorization of $ 99,905 for Senior Notes repurchases at June 30, 2023.

During the nine months ended September 30, 2023, the Company repurchased 5,567 notes of the 2013 Senior Notes at an average price per unit of $ 17.10 for a total cost of $ 95 .

Total interest and amortization expenses were partly offset by a gain of $ 40 that was realized on the repurchase of the 2013 Senior Notes during the nine months ended September 30, 2023.

The Company has a remaining authorization of $ 99,905 for Senior Notes repurchases at September 30, 2023.

MAIDEN HOLDINGS, LTD.

7 unchanged sentences

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

The effect of ceded reinsurance on net premiums written and earned and on net loss and LAE for the six months ended June 30, 2023 and 2022 was as follows:

For the Six Months Ended June 30, 2023 2022

The effect of ceded reinsurance on net premiums written and earned and on net loss and LAE for the nine months ended September 30, 2023 and 2022 was as follows:

For the Nine Months Ended September 30, 2023 2022

Premiums written

11 unchanged sentences

$ 36,503 $ 22,017

The Company's reinsurance recoverable on unpaid losses balance as at June 30, 2023 was $ 561,576 (December 31, 2022 - $ 556,116 ) presented in the Condensed Consolidated Balance Sheets.

As of June 30, 2023, the total allowance for expected credit losses on the Company's reinsurance recoverable balance was $ 4,530 .

The following table provides a reconciliation of the beginning and ending balances of the allowance for expected credit losses on reinsurance recoverable for the three and six months ended June 30, 2023:

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

The Company's reinsurance recoverable on unpaid losses balance as at September 30, 2023 was $ 558,777 (December 31, 2022 - $ 556,116 ) presented in the Condensed Consolidated Balance Sheets.

As of September 30, 2023, the total allowance for expected credit losses on the Company's reinsurance recoverable balance was $ 4,289 .

The following table provides a reconciliation of the beginning and ending balances of the allowance for expected credit losses on reinsurance recoverable for the three and nine months ended September 30, 2023:

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

Allowance for expected credit losses on reinsurance recoverable, beginning of period $ 4,530 $ 4,277

Increase in allowance for expected credit losses on reinsurance recoverable where credit losses were previously recognized 276 253

(Decrease) increase in allowance for expected credit losses on reinsurance recoverable where credit losses were previously recognized ( 241 ) 12

Allowance for expected credit losses on reinsurance recoverable, end of period $ 4,289 $ 4,289

1 unchanged sentence

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 $ 54,880 at June 30, 2023 (December 31, 2022 - $ 60,112 ).

The recoverable due from Cavello is net of an allowance for expected credit losses of $ 4,008 as at June 30, 2023.

The reinsurance recoverable on unpaid losses due from Cavello under this retrocession agreement was $ 53,943 at September 30, 2023 (December 31, 2022 - $ 60,112 ).

The recoverable due from Cavello is net of an allowance for expected credit losses of $ 3,783 as at September 30, 2023.

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 .

3 unchanged sentences

Cumulative ceded losses exceeding $ 445,000 are recognized as a deferred gain liability and amortized into income over the settlement period of the ceded reserves in proportion to cumulative losses collected over the estimated ultimate reinsurance recoverable.

The amount of the deferral is recalculated each period based on loss payments and updated estimates.

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.

MAIDEN HOLDINGS, LTD.

3 unchanged sentences

Reinsurance (continued)

The amount of the deferral is recalculated each period based on loss payments and updated estimates.

As of June 30, 2023, the reinsurance recoverable on unpaid losses under the LPT/ADC Agreement was $ 502,195 while the deferred gain liability under the LPT/ADC Agreement was $ 57,708 (December 31, 2022 - $ 490,408 and $ 45,408 , respectively).

The recoverable due under the LPT/ADC Agreement is net of an allowance for expected credit losses of $ 513 as at June 30, 2023.

As of September 30, 2023, the reinsurance recoverable on unpaid losses under the LPT/ADC Agreement was $ 501,023 while the deferred gain liability under the LPT/ADC Agreement was $ 56,516 (December 31, 2022 - $ 490,408 and $ 45,408 , respectively).

The recoverable due under the LPT/ADC Agreement is net of an allowance for expected credit losses of $ 493 as at September 30, 2023.

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 June 30, 2023, the amount of collateral required was $ 471,636 .

As of September 30, 2023, the amount of collateral required was $ 471,636 .

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

Cavello's parent company, Enstar, has credit ratings of BBB from both Standard & Poor's and Fitch Ratings at June 30, 2023 .

Cavello's parent company, Enstar, has credit ratings of BBB+ from both Standard & Poor's and Fitch Ratings at September 30, 2023 .

MAIDEN HOLDINGS, LTD.

16 unchanged sentences

The reserve for loss and LAE consists of:

June 30, 2023 December 31, 2022

September 30, 2023 December 31, 2022

Reserve for reported loss and LAE

5 unchanged sentences

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

For the Six Months Ended June 30, 2023 2022

For the Nine Months Ended September 30, 2023 2022

Gross loss and LAE reserves, January 1

7 unchanged sentences

15,984 ( 5,493 )

36,503 22,017

Net paid losses related to:

7 unchanged sentences

( 2,599 ) ( 50,574 )

Net loss and LAE reserves, June 30 439,685 720,261

Reinsurance recoverable on unpaid losses, June 30 561,576 554,846

Gross loss and LAE reserves, June 30 $ 1,001,261 $ 1,275,107

Net loss and LAE reserves, September 30 352,698 598,109

Reinsurance recoverable on unpaid losses, September 30 558,777 547,975

Gross loss and LAE reserves, September 30 $ 911,475 $ 1,146,084

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.

The Company recognized net adverse prior year loss development of $ 4,494 and $ 8,150 for the three and six months ended June 30, 2023, respectively (2022 - adverse $ 958 and favorable $ 6,327 , respectively).

In the Diversified Reinsurance segment, there was adverse prior year loss development of $ 1,317 and $ 2,074 for the three and six months ended June 30, 2023, respectively (2022 - adverse $ 826 and favorable $ 1,385 , respectively).

Prior year loss development for the three and six months ended June 30, 2023 was driven by adverse development primarily due to a German auto program in run-off from the International unit along with development from other runoff business lines and included the recognition of expected credit losses on reinsurance recoverable on unpaid losses.

The Company recognized net adverse prior year loss development of $ 7,834 and $ 15,984 for the three and nine months ended September 30, 2023, respectively (2022 - adverse $ 834 and favorable $ 5,493 , respectively).

In the Diversified Reinsurance segment, there was adverse prior year loss development of $ 1,864 and $ 3,938 for the three and nine months ended September 30, 2023, respectively (2022 - favorable $ 590 and $ 1,975 , respectively).

Prior year loss development for the three and nine months ended September 30, 2023 was driven by adverse development primarily due to a German auto program in run-off from the International unit along with development from other runoff business lines and also included the recognition of expected credit losses on reinsurance recoverable on unpaid losses for the year-to-date period.

MAIDEN HOLDINGS, LTD.

3 unchanged sentences

Reserve for Loss and Loss Adjustment Expenses (continued)

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

In the AmTrust Reinsurance segment, net adverse prior year loss development was $ 3,177 and $ 6,076 during the three and six months ended June 30, 2023, respectively (2022 - adverse $ 132 and favorable $ 4,942 , respectively).

Net adverse prior year loss development for the three and six months ended June 30, 2023 was primarily from General Liability and Commercial Auto Liability partly offset by continued favorable development in Workers Compensation.

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 Liability.

The increase in the deferred gain on retroactive reinsurance was $ 12,317 for the six months ended June 30, 2023 (2022 - $ 5,288 decrease).

This included an increase in the deferred gain liability and related reinsurance recoverable on unpaid losses under the LPT/ADC Agreement with Cavello of $ 12,300 for the six months ended June 30, 2023 (2022 - $ 4,463 decrease) caused by adverse development on loss reserves covered under the LPT/ADC Agreement (2022 - favorable).

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, 2023 and December 31, 2022.

Prior year loss development for the three and nine months ended September 30, 2022 was primarily due to favorable reserve development in German Auto Programs and GLS reinsurance contracts partly offset by adverse development in European Capital Solutions.

In the AmTrust Reinsurance segment, net adverse prior year loss development was $ 5,970 and $ 12,046 during the three and nine months ended September 30, 2023, respectively (2022 - adverse $ 1,424 and favorable $ 3,518 , respectively).

Net adverse prior year loss development for the three and nine months ended September 30, 2023 was primarily from European Hospital Liability for the three months ended September 30, 2023, and European Hospital Liability and the AmTrust Quota Share (General Liability and Commercial Auto Liability partly offset by continued favorable development in Workers Compensation) for the nine months ended September 30, 2023.

Net adverse loss development on European Hospital Liability was primarily driven by emergence of loss data during 2023 on underwriting years 2011 to 2016.

Net adverse prior year loss development for the three months ended September 30, 2022 was driven by unfavorable movements in European Hospital Liability due to higher than expected loss emergence in Italian Hospital Liability policies as well as the agreed exit cost of $ 3,666 (€ 3,444 ) for the commutation of French Hospital Liability policies as described in "Note 10.

Related Party Transactions" ;

partly offset by favorable runoff of Workers Compensation business.

The net favorable prior year loss development for the nine months ended September 30, 2022 included $ 5,346 of favorable reserve adjustments for estimated surcharges on Workers' Compensation policies and inuring AmTrust reinsurance for programs in Specialty Risk and Extended Warranty cessions ("AmTrust Cession Adjustments").

Excluding AmTrust Cession Adjustments, there was adverse development of $ 1,828 for the nine months ended September 30, 2022 driven by unfavorable movements in European Hospital Liability due to higher than expected loss emergence in Italian Hospital Liability policies as well as the agreed exit cost of $ 3,666 (€ 3,444 for commutation of French Hospital Liability policies as described in "Note 10.

Related Party Transactions" ;

partly offset by favorable runoff of Workers Compensation business.

The increase in the deferred gain on retroactive reinsurance was $ 11,129 for the nine months ended September 30, 2023 (2022 - $ 12,024 decrease).

This included an increase in the deferred gain liability and related reinsurance recoverable on unpaid losses under the LPT/ADC Agreement with Cavello of $ 11,108 for the nine months ended September 30, 2023 (2022 - $ 10,722 decrease) caused by adverse development on loss reserves covered under the LPT/ADC Agreement (2022 - favorable).

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 September 30, 2023 and December 31, 2022.

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.

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

24 unchanged sentences

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

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)

AII and Maiden Reinsurance also agreed that as of July 31, 2019, the AmTrust Quota Share was deemed amended as applicable so that the Commuted Business is no longer included as part of Covered Business under the AmTrust Quota Share.

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.

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)

Effective July 1, 2022, Maiden Reinsurance and AIU DAC entered into an agreement ("Commutation Agreement") which provided for AIU DAC to assume all reserves ceded by AIU DAC to Maiden Reinsurance with respect to AIU DAC’s French Medical Malpractice exposures for underwriting years 2012 through 2018 reinsured by Maiden Reinsurance under the European Hospital Liability Quota Share.

1 unchanged sentence

As a result of the Commutation Agreement, Maiden Reinsurance reduced its exposure to AmTrust's Hospital Liability business, but still has exposure to Italian medical malpractice liabilities under the European Hospital Liability Quota Share.

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, 2023 and 2022, respectively:

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

The table below shows the effect of both of these quota share arrangements with AmTrust on the Company's Condensed Consolidated Income Statements for the three and nine months ended September 30, 2023 and 2022, respectively:

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

2023 2022 2023 2022

13 unchanged sentences

The collateral requirements under the AmTrust Quota Share with AII was satisfied as follows:

• by lending funds of $ 167,975 at June 30, 2023 and December 31, 2022 pursuant to a loan agreement entered into between those parties.

Advances under the loan are secured by promissory notes and was assigned by AII to AmTrust effective December 31, 2014 and is carried at cost.

• by lending funds of $ 167,975 at September 30, 2023 and December 31, 2022 pursuant to a loan agreement entered into between those parties.

Advances under the loan are secured by promissory notes and was assigned by AII to AmTrust effective December 31, 2014 and carried at cost.

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 $ 2,927 and $ 5,625 for the three and six months ended June 30, 2023, respectively (2022 - $ 1,158 and $ 2,037 , respectively) and the effective yield was 7.0 % and 6.7 % for the respective periods (2022 - 2.8 % and 2.4 %).

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)

Interest income on the loan was $ 3,073 and $ 8,698 for the three and nine months ended September 30, 2023, respectively (2022 - $ 1,771 and $ 3,808 , respectively) and the effective yield was 7.3 % and 6.9 % for the respective periods (2022 - 4.2 % and 3.0 %).

• 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;

1 unchanged sentence

AmTrust subsidiaries.

The amount of the collateral at June 30, 2023 was $ 13,869 (December 31, 2022 - $ 42,305 ) and the accrued interest was $ 62 (December 31, 2022 - $ 224 ).

The amount of collateral remaining at September 30, 2023 was $ 0 (December 31, 2022 - $ 42,305 ) and the accrued interest was $ 0 (December 31, 2022 - $ 224 ).

Please refer to "Note 4.

2 unchanged sentences

The funds withheld receivable earns an annual interest rate of 3.5 % for 2023, which is subject to annual adjustment ( 2.1 % for 2022).

At June 30, 2023, the funds withheld balance was $ 286,900 (December 31, 2022 - $ 416,835 ) and accrued interest was $ 3,061 (December 31, 2022 - $ 2,359 ).

The interest income on the funds withheld receivable was $ 3,061 and $ 6,342 for the three and six months ended June 30, 2023, respectively (2022 - $ 3,436 and $ 5,988 , respectively).

At September 30, 2023, the funds withheld balance was $ 213,051 (December 31, 2022 - $ 416,835 ) and accrued interest was $ 2,474 (December 31, 2022 - $ 2,359 ).

Interest income on the funds withheld receivable was $ 2,227 and $ 8,569 for the three and nine months ended September 30, 2023, respectively (2022 - $ 2,597 and $ 8,585 , 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.

Under the MCA, Cavello provided letters of credit on behalf of Maiden Reinsurance to AmTrust in an amount representing Cavello’s obligations under the LPT/ADC Agreement.

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)

Because these letters of credit replaced other collateral previously provided directly by Maiden Reinsurance to AmTrust, the MCA coordinates the collateral protection that will be provided to AmTrust to ensure that no gaps in collateral funding occur by operation of the LPT/ADC Agreement and related MCA.

22 unchanged sentences

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

For AEL, the amount of the collateral held in reinsurance trust accounts at June 30, 2023 was $ 157,863 (December 31, 2022 - $ 188,473 ) and the accrued interest was $ 1,163 (December 31, 2022 - $ 966 ).

For AEL, the amount of the collateral held in reinsurance trust accounts at September 30, 2023 was $ 154,653 (December 31, 2022 - $ 188,473 ) and the accrued interest was $ 1,085 (December 31, 2022 - $ 966 ).

Asset Management Agreement

2 unchanged sentences

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

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 Company recorded $ 72 and $ 145 of investment management fees for the three and six months ended June 30, 2023, respectively (2022 - $ 104 and $ 230 , respectively) under this agreement.

The Company recorded $ 61 and $ 206 of investment management fees for the three and nine months ended September 30, 2023, respectively (2022 - $ 99 and $ 329 , 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.

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.

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

1 unchanged sentence

a) Concentrations of Credit Risk

At June 30, 2023 and December 31, 2022, the Company’s assets where significant concentrations of credit risk may exist include investments, cash and cash equivalents, loan to related party, reinsurance balances receivable, reinsurance recoverable on paid and unpaid losses and funds withheld receivable.

At September 30, 2023 and December 31, 2022, the Company’s assets where significant concentrations of credit risk may exist include investments, cash and cash equivalents, loan to related party, reinsurance balances receivable, reinsurance recoverable on 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 June 30, 2023.

Best at September 30, 2023.

To mitigate credit risk, the Company generally has a contractual right of offset thereby allowing claims to be settled net of any premiums or loan receivable.

The Company believes these balances as at June 30, 2023 will be fully collectible.

The Company believes these balances as at September 30, 2023 will be fully collectible.

Please refer to " Note 2.

Significant Accounting Polices " for additional information on the Company's credit loss allowances as at June 30, 2023 regarding other investments, reinsurance recoverable on unpaid losses, reinsurance balances receivable and funds withheld receivable that were recorded under Topic 326 which was adopted effective January 1, 2023.

Significant Accounting Polices " for additional information on the Company's credit loss allowances as at September 30, 2023 regarding other investments, reinsurance recoverable on unpaid losses, reinsurance balances receivable and funds withheld receivable that were recorded under Topic 326 which was adopted effective January 1, 2023.

b) Investment Commitments and Related Financial Guarantees

The Company had total unfunded commitments on alternative investments of $ 103,721 at June 30, 2023 (December 31, 2022 - $ 112,989 ) which included commitments for other investments, private equity securities and equity method investments.

The table below shows the total unfunded commitments by type of investment as at June 30, 2023 and December 31, 2022:

June 30, 2023 December 31, 2022

The Company had total unfunded commitments on alternative investments of $ 105,844 at September 30, 2023 (December 31, 2022 - $ 112,989 ) which included commitments for other investments, private equity securities and equity method investments.

The table below shows the total unfunded commitments by type of investment as at September 30, 2023 and December 31, 2022:

September 30, 2023 December 31, 2022

Fair Value % of Total Fair Value % of Total

6 unchanged sentences

Total unfunded commitments on alternative investments $ 105,844 100.0 % $ 112,989 100.0 %

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)

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 June 30, 2023, guarantees of $ 43,135 (December 31, 2022 - $ 42,141 ) 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 September 30, 2023, guarantees of $ 55,109 (December 31, 2022 - $ 42,141 ) 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.

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)

c) Operating Lease Commitments

3 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.

At June 30, 2023, the Company's future lease obligations of $ 329 (December 31, 2022 - $ 300 ) were calculated based on the present value of future annual rental commitments excluding taxes, insurance and other operating costs for non-cancellable operating leases discounted using its secured incremental borrowing rate.

At September 30, 2023, the Company's future lease obligations of $ 272 (December 31, 2022 - $ 300 ) were calculated based on the present value of future annual rental commitments excluding taxes, insurance and other operating costs for non-cancellable operating leases discounted using its secured incremental borrowing rate.

This amount has been recognized on the Consolidated Balance Sheet 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 .

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

The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants.The Company's weighted-average remaining lease term is approximately 1.6 years at June 30, 2023.

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

The Company's weighted-average remaining lease term is approximately 1.4 years at September 30, 2023.

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

The Company's total lease expense was $ 135 and $ 255 for three and six months ended June 30, 2023, respectively (2022 - $ 82 and $ 159 , respectively ) recognized within general and administrative expenses consistent with the prior accounting treatment under Topic 840.

The Company's total lease expense was $ 119 and $ 374 for three and nine months ended September 30, 2023, respectively (2022 - $ 101 and $ 260 , respectively) recognized within general and administrative expenses consistent with the prior accounting treatment under Topic 840.

d) Legal Proceedings

28 unchanged sentences

On June 29, 2023, the Administrative Review Board issued a decision and order which summarily affirmed the September 2, 2021 decision and order of the Administrative Law Judge.

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 decision and order of the Administrative Review Board became the final order of the Secretary of Labor on July 27, 2023.

On July 28, 2023, Mr.

Turin filed a petition for review of the final order of the Secretary of Labor in the United States Court of Appeals for the Second Circuit.

The Secretary of Labor is the respondent before the Second Circuit and the Court granted the Company's petition to intervene in order to present its position to the Court.

The parties are awaiting a briefing order.

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

6 unchanged sentences

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

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)

On February 7, 2023, the District Court denied Plaintiffs’ motion for reconsideration of the District Court’s decision denying Plaintiffs’ objection to the Magistrate Judge’s December 2021 ruling on discovery.

The Company expects to file a dispositive motion in the near future.

On May 26, 2023, the Company filed a Renewed Motion to Dismiss the Second Amended Complaint or, in the Alternative, for Summary Judgment, which has been fully briefed and is now under consideration by the Court.

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

3 unchanged sentences

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

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

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

2023 2022 2023 2022

Net (loss) income $ ( 2,933 ) $ 1,062 $ ( 14,261 ) $ ( 887 )

Net loss $ ( 3,527 ) $ ( 8,160 ) $ ( 17,788 ) $ ( 9,047 )

Gain from repurchase of preference shares — — — 28,233

1 unchanged sentence

— — — ( 109 )

Net (loss) income allocated to Maiden common shareholders $ ( 2,933 ) $ 25,615 $ ( 14,261 ) $ 27,192

Net (loss) income (attributable) available to Maiden common shareholders $ ( 3,527 ) $ ( 8,160 ) $ ( 17,788 ) $ 19,077

Weighted average number of common shares – basic 101,454,767 87,161,499 101,586,759 86,935,823

1 unchanged sentence

Share options and restricted share units (2)

— 1,867 — 2,711

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

101,454,767 87,161,499 101,586,759 86,937,552

Basic and diluted (loss) earnings per share attributable to common shareholders $ ( 0.03 ) $ 0.29 $ ( 0.14 ) $ 0.31

Basic and diluted (loss) earnings per share (attributable) available to common shareholders $ ( 0.03 ) $ ( 0.09 ) $ ( 0.18 ) $ 0.22

(1) This represents the share in net income using the two-class method for holders of non-vested restricted shares issued to the Company's employees under the 2019 Omnibus Incentive Plan.

2 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, 2022 for the terms and conditions of securities that could potentially be dilutive in the future.

There were no potentially dilutive securities for the three and six months ended June 30, 2023 (2022 - 1,867 and 2,711 , respectively).

The Company recognized an income tax benefit of $ 194 and $ 222 for the three and six months ended June 30, 2023, respectively, compared to an income tax benefit of $ 713 and income tax expense of $ 542 for the same respective periods in 2022.

There were no potentially dilutive securities for the three and nine months ended September 30, 2023 (2022 - 0 and 1,729 , respectively).

The Company recognized an income tax benefit of $ 31 and $ 253 for the three and nine months ended September 30, 2023, respectively, compared to an income tax benefit of $ 91 and an income tax expense of $ 451 for the same respective periods in 2022.

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

3 unchanged sentences

net deferred tax assets as more evidence is needed regarding the utilization of these tax benefits in the future.

MAIDEN HOLDINGS, LTD.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

(in thousands of U.S.

dollars, except share and per share data)

Subsequent Events

a) Common Share Repurchases

Subsequent to September 30, 2023 and through the period ended November 7, 2023, the Company repurchased 226,250 additional common shares at an average price per share of $ 1.67 under the Company's authorized common share repurchase plan pursuant to Rule 10b5-1(c)(1) under the Securities Exchange Act of 1934.

The Company's remaining share repurchase authorization was $ 72,281 at November 7, 2023.

b) Insider Trading Arrangements and Policies

During the three months ended September 30, 2023, the Company adopted a Rule 10b5-1(c)(1) trading arrangement as defined in Item 408 of Regulation S-K under the Securities Exchange Act of 1934, as amended.

On September 29, 2023, an agreement was signed between Maiden Holdings and a financial intermediary, who was authorized to begin purchasing common shares on October 30, 2023 until the close of business on September 29, 2024, subject to certain conditions set forth in the agreement.

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