What changed in this filing

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Item 2. Management’s Discussion and Analysis

2024-05-09 compared with 2023-11-08 · 439 added, 487 removed, 823 unchanged (53% of the section changed)

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

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

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

We are not currently underwriting reinsurance business on new prospective risks but are actively underwriting risks on a retroactive basis through Genesis Legacy Solutions ("GLS").

As discussed in the “Legacy Underwriting” section further below, we have fulfilled our capital commitment to Genesis Legacy Solutions ("GLS") and have determined we will not commit any further capital to GLS for new accounts and we presently do not anticipate any further contracts in the legacy management segment, as we no longer consider it part of our strategy to produce acceptable shareholder returns.

We are not currently underwriting reinsurance business on new prospective risks but have recently underwritten risks on a retroactive basis through GLS.

We also have various historic reinsurance programs underwritten by Maiden Reinsurance Ltd.

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"Financial Information" .

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

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

Our wholly owned subsidiary, Maiden Global Holdings, Ltd.

("Maiden Global") is a licensed intermediary in the United Kingdom.

Maiden Global had previously operated internationally by providing branded auto and credit life insurance products through insurer partners, particularly those in Europe and other global markets.

Maiden Global had previously operated internationally by providing branded auto and credit life insurance products through insurer partners, particularly those in Europe and other global markets ("IIS business").

These products also produced reinsurance programs which were underwritten by our wholly owned subsidiary Maiden Reinsurance.

In 2023, we are evaluating the strategic value of Maiden LF and Maiden GF in relation to their ongoing growth and profitability prospects, regulatory capital requirements and ability to create shareholder value in excess of our target return on capital levels.

We expect to continue this evaluation during the remainder of 2023.

On May 3, 2024, Maiden LF and Maiden GF entered into a renewal rights transaction with AmTrust Nordic AB ("AmTrust Nordic") a Swedish unit of AmTrust which is expected to cover the majority of Maiden LF and Maiden GF's primary business written in Sweden, Norway and other Nordic countries.

The Company anticipates entering into additional renewal rights agreements with other AmTrust entities for certain business written by Maiden GF and Maiden LF in the United Kingdom and Ireland.

Under these agreements, AmTrust Nordic in collaboration with existing Maiden LF and Maiden GF distribution partners, will offer renewals to select policyholders in exchange for a fee at standard market terms for business successfully renewed.

AmTrust is expected to hire a limited number of related staff to support the transfer of the business.

These transactions are part of our broader plan to divest the IIS businesses as a result of our recently concluded strategic review of the IIS business platform.

The purpose of that review was to evaluate the strategic value of Maiden LF and Maiden GF in relation to their ongoing growth and profitability prospects, regulatory capital requirements and ability to create shareholder value in excess of our target return on capital levels.

As part of these conclusions, we expect to enter into additional transactions to either sell or wind-up Maiden GF and Maiden LF during 2024 and we are actively evaluating potential transactions currently.

Our business currently consists of two reportable segments:

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

This segment also includes transactions entered into by GLS which was formed in November 2020 .

This segment also includes transactions entered into by GLS since November 2020 .

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

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In addition to restoring operating profitability, our strategic focus centers on creating the greatest risk-adjusted shareholder returns in order to increase book value for our common shareholders, both near and long-term.

We also believe that these areas of strategic focus will enhance our profitability through increased returns, which should also increase the likelihood of fully utilizing the significant net operating loss ("NOL") carryforwards as described further below which would create additional common shareholder value.

This strategy presently has three principal areas of focus:

In that respect, management’s focus is to increase the non-GAAP book value of the Company, which fully reflects the steps we have taken to protect our balance sheet, primarily through our LPT/ADC Agreement with Cavello, as this represents the ultimate economic value of Maiden.

This strategy presently has two principal areas of focus:

• Asset management - investing in assets and asset classes in a prudent but expansive manner in order to maximize investment returns and is principally enabled by limiting the amount of insurance risk we assume in relation to the assets we hold and maintaining required regulatory capital at very strong levels to manage our aggregate risk profile;

• Legacy underwriting - judiciously building a portfolio of legacy run-off acquisitions and retroactive reinsurance transactions which we believe will produce attractive underwriting returns;

• Capital management - effectively managing the capital we hold on our balance sheet and when appropriate, repurchasing securities or returning capital to enhance common shareholder returns.

As our insurance liabilities run-off and these strategies potentially develop along timelines longer than initially anticipated, we may allocate capital to other insurance activities that produce more consistent levels of revenue and profit as we seek to create longer-term shareholder value.

For example, we have not engaged or pursued active reinsurance underwriting of new prospective risks as our assessment of the reinsurance marketplace along with our current operating profile has been that the risk-adjusted returns that may be produced via such underwriting are likely to be lower over the long-term than our cost of capital.

However, as interest rates have increased and moved towards historically observed levels, risk-adjusted returns for active reinsurance underwriting of new prospective risks may become more attractive and while we have no immediate plans to resume such underwriting, we continue to evaluate if such a strategy would produce suitable value for shareholders.

Further, we continue to also evaluate our ongoing activities in insurance distribution.

To date, our insurance distribution investments have achieved an internal rate of return of 30.2% and a multiple of capital of 1.58x on those investments.

As part of our ongoing evaluation of both the insurance and reinsurance marketplace and the ability of both the distribution and the reinsurance markets to increase our current income, we increasingly believe expansion of those strategies may be appropriate.

We are exploring distribution opportunities which are non-risk bearing and capital efficient and given ongoing changes in reinsurance markets, can be potentially complemented by limited and selective deployment of reinsurance capacity to supplement those activities and enhance returns to shareholders.

The measures implemented in recent years have allowed us to more flexibly allocate capital to those activities most likely to produce the greatest returns for shareholders, and we are actively engaged in evaluating and deploying funds in all pillars of the strategies as discussed herein.

As part of our ongoing strategic evaluation of both the insurance and reinsurance marketplace and the ability of both the fee-based, distribution and the reinsurance markets to increase our current income and improve our ability to utilize and recognize our deferred tax assets, we increasingly believe expansion of those strategies may be appropriate.

We are actively exploring fee-based and distribution opportunities which are non-risk bearing and capital efficient and given ongoing changes in reinsurance markets, can be potentially complemented by limited and selective deployment of reinsurance capacity to supplement those activities and enhance returns to shareholders.

To date, we invested $12.7 million in insurance distribution platforms and these investments have achieved an internal rate of return of 21.7% and a multiple of capital of 1.53x on those investments.

Further, we have not engaged or pursued active reinsurance underwriting of new prospective risks as our assessment of the reinsurance marketplace along with our current operating profile has been that the risk-adjusted returns that may be produced via such underwriting are likely to be lower over the long-term than our cost of capital.

While we do not expect to pursue such a strategy independently, such an approach could complement and enhance an approach to investing in and acquiring fee-based and distribution properties and strengthen those entities.

While our returns to date have not as yet achieved our objectives, we continue to believe the measures implemented in recent years have allowed us to more flexibly allocate capital to those activities most likely to produce the greatest returns for shareholders, and we are actively engaged in evaluating and deploying funds and adjusting our strategies as discussed herein.

The returns expected to be produced by each pillar of our strategy are primarily evaluated in relation to our cost of debt capital, which carries a weighted average effective interest rate of 7.6%.

To the extent our experience or belief indicates we cannot exceed the cost of debt capital, we expect to refrain from activities in those areas.

To the extent our experience or belief indicates we cannot exceed the cost of debt capital, we expect to refrain from activities in those areas, as evidenced in our decisions regarding legacy management.

Our ability to execute our asset and capital management initiatives is dependent on maintaining adequate levels of unrestricted liquidity and cash flows.

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We believe these expanded activities will produce a broad range of positive impacts on our financial condition, including current income, longer-term gains and in certain instances, fee income.

In recent years, we have invested approximately $291.3 million into alternative investments which include equity securities, other investments and equity method investments in a wide variety of asset classes and we believe these activities will exceed that benchmark cost of capital with adjustments as necessary if those returns do not emerge.

Recent development and trends in financial markets, particularly the rapid rise in interest rates and heightened risk of economic recession, indicate that it may take longer than expected to achieve those returns and we expect that to factor into future capital allocation decisions.

As of March 31, 2024 , we have invested approximately $327.0 million into alternative investments which include equity securities, other investments and equity method investments in a wide variety of asset classes, and we believe these activities will exceed that benchmark cost of capital with adjustments as necessary if those returns do not emerge.

Please refer to the "Liquidity and Capital Resources" section on " Other Investments, Equity Investments and Equity Method Investments" for further information on our alternative asset classes and a detailed discussion of their investment returns.

Recent development and trends in financial markets, particularly the rapid rise in interest rates and associated economic uncertainty as a result of those changes, indicate that it may take longer than expected to achieve those returns and we expect that to factor into future capital allocation decisions.

In particular, as interest rates have risen to more historically observed levels, we have focused on investing in assets that produce higher levels of current income as opposed to longer-term gains, in order to increase returns to shareholders and increase the opportunity to recognize our deferred tax assets discussed below.

Legacy Underwriting

In November 2020, we formed GLS which specializes in providing a full range of legacy services to small insurance entities, particularly those in run-off or with blocks of reserves that are no longer core, working with clients to develop and implement finality solutions including acquiring entire companies that enable our clients to meet their capital and risk management objectives.

We acquire legacy liabilities and (re)insurance reserves from companies and provide retroactive reinsurance coverage for portfolios of (re)insurance business, primarily via loss portfolio transfer contracts (“LPT”).

Additionally, we provide reinsurance contracts to other (re)insurers to mitigate some of their risk of future adverse development (an adverse development cover, or “ADC”) on insurance risks relating to prior accident years.

We believe the formation of GLS is highly complementary to our overall longer-term strategy and will produce risk-adjusted returns in excess of our debt cost of capital.

In addition, while we anticipate profitable growth from the GLS portfolio as it develops, we expect our required capital to continue to decline as insurance risk incurred by GLS will be more than offset by the run-off of insurance liabilities from our prior reinsurance strategies.

GLS, along with other recent insurance industry investments, enables us to leverage our knowledge base while not re-entering active underwriting of new prospective risks and maintaining an efficient operating profile.

We believe GLS not only enhances our profitability through both fee income and effective claims management services, but it will also increase our asset base through the addition of blocks of reserves or companies that can be successfully wound down.

Effective October 1, 2021, GLS completed its first loss portfolio transfer transaction which included an ADC cover.

GLS continues to write additional retroactive reinsurance transactions consistent with its business plan.

In addition to producing long-term returns that may exceed the target cost of capital, we expect the business produced through GLS should further enhance our ability to pursue the asset and capital management pillars of our business strategy.

The nature of GLS business plan is that it may take a sustained period of growth in insurance liabilities to produce the targeted returns, which has not occurred to date.

In addition, early stage initiatives such as GLS may take a period of time to reach profitability.

Finally, the nature of legacy transactions which GLS seeks to execute may be inconsistent as to their timing and not predictable as regards how many transactions may be completed in any fiscal period.

As of September 30, 2023, GLS and its subsidiaries hold insurance related liabilities of $26.2 million including mainly total reserves of $19.9 million, an underwriting-related derivative liability of $4.0 million, and net deferred gains on retroactive reinsurance of $2.3 million.

Capital Management

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The Company expects to deploy its capital management strategy on a long-term and disciplined basis, balanced along with its other strategic initiatives.

We note that recognition of the deferred tax asset on our balance sheet is a leading priority for the Company to increase its GAAP and non-GAAP book value and we will balance these considerations against opportunities to repurchase shares at what we believe are appropriate prices as we pursue our capital management initiatives.

Please refer to " Notes to Condensed Consolidated Financial Statements (unaudited) Note 6.

Shareholders' Equity and Note 7.

Long-Term Debt " included under Item 1.

"Financial Statements" of this Quarterly Report on Form 10-Q for further information on the recent repurchases made by Maiden Reinsurance during the third quarter of 2023.

However, there can be no assurance that we will continue to pursue such capital management initiatives, or that they will provide appropriate risk-adjusted returns.

Shareholders' Equity " included under Item 1.

"Financial Statements" of this Quarterly Report on Form 10-Q for further information on the recent repurchases made by Maiden Reinsurance during the first quarter of 2024.

There can be no assurance that we will continue to pursue such capital management initiatives, or that they will provide appropriate risk-adjusted returns.

As we revised our strategy in recent years, we continuously evaluate the effectiveness of those strategies in achieving its goals and have been and continue to be prepared to adjust those strategies as our performance dictates.

Legacy Underwriting

In November 2020, the Company formed GLS to specialize in providing a full range of legacy services to small insurance entities, particularly those in run-off or with blocks of reserves that are no longer core to those companies' operations, working with clients to develop and implement finality solutions including acquiring entire companies that enable our clients to meet their capital and risk management objectives.The goal of GLS was to acquire legacy liabilities and (re)insurance reserves from companies and provide retroactive reinsurance coverage for portfolios of (re)insurance business, primarily via loss portfolio transfer contracts (“LPT”).

Additionally, GLS provided reinsurance contracts to other (re)insurers to mitigate some of their risk of future adverse development (an adverse development cover, or “ADC”) on insurance risks relating to prior accident years.

We believed the formation of GLS was highly complementary to our overall longer-term strategy and would produce risk-adjusted returns in excess of our debt cost of capital.

However, GLS did not achieve either the volume or profitability expected and we concluded that the outlook would not change materially.

At the time we formed GLS, we committed a certain level of capital to support this business which we have since fulfilled.

After carefully evaluating the performance of this platform, ongoing market conditions, the competitive landscape and a variety of other factors, we have concluded that we will not commit additional capital to new accounts in this segment and will be running off the small number of accounts we underwrote since the formation of GLS.

We presently do not anticipate any further contracts in the legacy management segment, and we no longer consider it part of our strategy to produce acceptable shareholder returns.

At March 31, 2024, GLS and its subsidiaries hold insurance related liabilities of $24.3 million which mainly consisted of total reserves of $18.1 million, an underwriting-related derivative liability of $4.0 million, and net deferred gains on retroactive reinsurance of $2.3 million.

2024 Developments

During the first quarter of 2024, while our book value remained stable at $2.48 per common share at March 31, 2024, our non-GAAP book value increased by 1.6% to $3.24 per common share at March 31, 2024.

We also made additional progress in the capital management pillar of our business strategy, repurchasing 352,111 common shares during the first quarter of 2024.

During the first quarter of 2024, our alternative investment portfolio increased by 5.8% and produced a positive net return of 3.4% on that portfolio during the first quarter of 2024 compared to 0.7% for the same period in 2023.

The annualized return is now above our cost of capital despite numerous investments continuing to be carried at cost or net asset values that have yet to realize positive marks due to their only recent deployment.

We believe our alternative investment portfolio remains well positioned to achieve its targeted longer-term returns.

As interest rates have risen, we are increasingly focusing our investing activities on opportunities that will produce current income.

The run-off of our historic reinsurance programs produced an underwriting loss during the first quarter of 2024, and we experienced adverse prior year reserve development of $6.6 million which offset much of the positive progress made in our capital and asset management strategies.

Of this adverse prior year development, $5.0 million or 76.2% of the total net adverse development for the three months ended March 31, 2024 was related to claims we expect to be covered by the LPT/ADC Agreement with Cavello and which will be recognized as future GAAP income when recovered from Cavello pursuant to both the agreement and GAAP accounting requirements.

Maiden Holdings North America ("Maiden NA")

We believe Maiden NA’s investments, including its ownership of Maiden Reinsurance and its active asset management strategy, will create opportunities to utilize NOL carryforwards of $304.9 million at September 30, 2023.

Approximately $182.8 million of these NOL carryforwards expire in various years beginning in 2029.

As of March 31, 2024, $151.2 million or 45.3% of the Company's NOL carryforwards have no expiry date under the relevant U.S.

The NOL carryforwards combined with additional net deferred tax assets ("DTA") primarily related to our insurance liabilities result in net U.S.

DTA (before valuation allowance) of $121.0 million or $1.20 per common share at September 30, 2023.

DTA (before valuation allowance) of $117.3 million or $1.17 per common share at March 31, 2024.

DTA of $117.3 million is not presently recognized on the Company's condensed consolidated balance sheets as a full valuation allowance is carried against it.

At this time, while positive evidence in support of reducing the valuation allowance is growing, the Company believes it is necessary to maintain a full valuation allowance against the net U.S.

DTA as more evidence is needed regarding the utilization of these losses.

more evidence is needed regarding the utilization of these losses.

As circumstances further develop, we will continuously evaluate the amount of the valuation allowance held against the net U.S.

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Taken together, we believe these measures should generate additional income for Maiden NA in a tax-efficient manner, while sharing in the improvement in profitability anticipated in Maiden Reinsurance as a result of the measures enacted as described above.

Three and Nine Months Ended September 30, 2023 and 2022 Financial Highlights

For the Three Months Ended September 30, 2023 2022 Change

Summary Consolidated Statement of Income Data (unaudited):

($ in thousands except per share data)

Net loss attributable to Maiden common shareholders $ (3,527) $ (8,160) $ 4,633

Basic and diluted loss per common share:

Net loss attributable to common shareholders (2)

(0.03) (0.09) 0.06

Gross premiums written 8,660 5,380 3,280

Net premiums earned 12,479 12,251 228

Underwriting loss (3)

(10,910) (12,627) 1,717

Net investment results (13)

11,482 4,692 6,790

Non-GAAP measures:

Non-GAAP operating loss (1)

(11,747) (21,060) 9,313

Non-GAAP basic and diluted operating loss per common share (1)

(0.12) (0.24) 0.12

Annualized non-GAAP operating return on average adjusted shareholders' equity (1)

(14.4) % (32.6) % 18.2

For the Nine Months Ended September 30, 2023 2022 Change

Three Months Ended March 31, 2024 and 2023 Financial Highlights

For the Three Months Ended March 31, 2024 2023 Change

Summary Consolidated Statement of Income Data (unaudited):

($ in thousands except per share data)

Net loss $ (17,788) $ (9,047) $ (8,741)

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

Net (loss) income attributable to Maiden common shareholders (17,788) 19,186 (36,974)

Basic and diluted (loss) earnings per common share:

Net (loss) income attributable to Maiden common shareholders (2)

Net income (loss) $ 1,459 $ (11,328) $ 12,787

Basic and diluted earnings (loss) per common share:

Net income (loss) available (attributable) to common shareholders (2)

0.01 (0.11) 0.12

Gain from repurchase of preference shares per common share — 0.32 (0.32)

Gross premiums written 8,323 836 7,487

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(6.2) % (9.9) % 3.7

September 30, 2023 December 31, 2022 Change

March 31, 2024 December 31, 2023 Change

Consolidated Financial Condition ($ in thousands except per share data)

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"Financial Statements" of this Quarterly Report on Form 10-Q.

The Company no longer presents certain non-GAAP measures such as combined ratio and its related components in this Quarterly Report on Form 10-Q for the three and nine months ended September 30, 2023, as it believes that as the run-off of our reinsurance portfolios progresses, such ratios are increasingly not meaningful and of less value to readers as they evaluate the financial results of the Company, particularly compared to historical data.

The Company no longer presents certain non-GAAP measures such as combined ratio and its related components in this Quarterly Report on Form 10-Q for the three months ended March 31, 2024, as it believes that as the run-off of our reinsurance portfolios progresses, such ratios are increasingly not meaningful and of less value to readers as they evaluate the financial results of the Company, particularly compared to historical data.

While an important metric of success, underwriting income (loss) does not reflect all components of profitability, as it does not recognize the impact of investment income earned on premiums between the time premiums are received and the time loss payments are ultimately paid to clients.

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Adjusted Total Shareholders' Equity, Adjusted Total Capital Resources, Ratio of Debt to Adjusted Total Capital Resources and Adjusted Book Value per Common Share:

Management has adjusted GAAP shareholders' equity by adding to shareholders' equity the unamortized deferred gain on ceded retroactive reinsurance under the LPT/ADC Agreement.

Management has adjusted GAAP shareholders' equity by adding to shareholders' equity the unamortized deferred gain on ceded retroactive reinsurance under the LPT/ADC Agreement to shareholders' equity.

The deferred gain liability on retroactive reinsurance under the LPT/ADC Agreement represents loss reserves estimated to be fully recoverable from Cavello.

The unamortized deferred gain on ceded retroactive reinsurance under the LPT/ADC Agreement includes the aggregate impact of:

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As a result, by virtue of this adjustment, management has also adjusted Total Capital Resources and computed the Ratio of Debt to Adjusted Capital Resources and Adjusted Book Value per Common Share.

The deferred gain liability on retroactive reinsurance under the LPT/ADC Agreement represents loss reserves estimated to be fully recoverable from Cavello and management believes adjusting for this shows the ultimate economic benefit of the LPT/ADC Agreement.

We believe reflecting the economic benefit of this non-recurring retroactive reinsurance agreement is helpful to understand future trends in our operations, which will improve the Company's shareholders' equity over the settlement or contract periods, respectively.

We believe adjusting for this shows the ultimate economic benefit of the LPT/ADC Agreement and reflecting the economic benefit of this non-recurring retroactive reinsurance agreement is helpful to understand future trends in our operations, which will improve the Company's shareholders' equity over the settlement or contract periods, respectively.

Alternative investments is the total of the Company's holdings of equity securities, other investments and equity method investments as reported on the Company's Condensed Consolidated Balance Sheets.

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Critical Accounting Policies and Estimates

The Company's critical accounting policies and estimates are discussed in " Management's Discussion and Analysis of Financial Condition and Results of Operations " section included under Item 7 of our Annual Report on Form 10-K for the year ended December 31, 2022, filed with the SEC on March 15, 2023.

The critical accounting policies and estimates should be read in conjunction with " Part I, Item 1 - Notes to Condensed Consolidated Financial Statements (unaudited) Note 2.

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Results of Operations

The following table sets forth our selected unaudited Condensed Consolidated Statement of Income data 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,

The following table sets forth our selected unaudited Condensed Consolidated Statement of Income data for the three months ended March 31, 2024 and 2023:

For the Three Months Ended March 31,

($ in thousands) 2024 2023

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$ 12,408 $ 9,002

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

Other insurance revenue (expense), net 46 (59)

Net loss and LAE

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Net investment income

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

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

Net realized and unrealized investment gains 8,750 1,005

Foreign exchange and other gains (losses) 2,053 (2,816)

Interest and amortization expenses (4,815) (3,824)

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

Income tax (expense) benefit (11) 28

Interest in income (loss) of equity method investments 606 (51)

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

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

Net (loss) income (attributable) available to Maiden common shareholders $ (3,527) $ (8,160) $ (17,788) $ 19,186

Net income (loss) $ 1,459 $ (11,328)

(1) Underwriting related general and administrative expenses is a non-GAAP measure.

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(3) The Company no longer presents certain non-GAAP measures such as combined ratio and its related components in its results of operation, as it believes that as the run-off of its reinsurance portfolios progresses, such ratios are increasingly not meaningful and of less value to readers as they evaluate our financial results.

Net (loss) income (attributable) available to Maiden common shareholders

Net loss attributable to Maiden common shareholders for the three months ended September 30, 2023 was $3.5 million compared to net loss available to Maiden common shareholders of $8.2 million for the same respective period in 2022.

The increase in our financial results for the third quarter of 2023 compared to the third quarter of 2022 was primarily due to:

• lower underwriting loss which was $10.9 million for the three months ended September 30, 2023 compared to an underwriting loss of $12.6 million in the same period in 2022 largely due to:

◦ adverse prior year loss development of $7.8 million in the third quarter of 2023 compared to adverse prior year loss development of $0.8 million during the same period in 2022;

◦ on a current accident year basis, underwriting loss was $3.1 million for the three months ended September 30, 2023 compared to an underwriting loss of $11.8 million for the same period in 2022.

• higher total income from investment activities to $11.5 million for the three months ended September 30, 2023 compared to $4.7 million for the same period in 2022 which was comprised of:

◦ net investment income increased to $9.0 million for the three months ended September 30, 2023 compared to $6.6 million for the same period in 2022;

◦ realized and unrealized investment gains were $0.2 million for the three months ended September 30, 2023 compared to losses of $1.6 million for the same period in 2022;

◦ interest in income of equity method investments of $2.2 million for the three months ended September 30, 2023 compared to an interest in loss of $0.4 million for the same period in 2022.

• corporate general and administrative expenses decreased to $3.9 million for the three months ended September 30, 2023 compared to $4.1 million for the same period in 2022.

• The increase in our quarterly financial results were partly offset by lower foreign exchange and other gains which decreased to $4.6 million for the three months ended September 30, 2023, compared to foreign exchange and other gains of $8.6 million for the same period in 2022.

Net loss attributable to Maiden common shareholders for the nine months ended September 30, 2023 was $17.8 million compared to net income available to Maiden common shareholders of $19.2 million for the same period in 2022.

Net income for the nine months ended September 30, 2022 included $28.2 million of gains from the repurchase of our preference shares.

Excluding the gain on the repurchase of our preference shares in 2022, our net loss for the nine months ended September 30, 2023 was $17.8 million compared to a net loss of $9.0 million for the same period in 2022.

The net decrease in results for the nine months ended September 30, 2023 compared to the same period in 2022 was primarily due to:

• underwriting loss of $28.4 million for the nine months ended September 30, 2023 compared to an underwriting loss of $19.4 million for the same period in 2022 largely due to:

◦ adverse prior year loss development of $16.0 million for the nine months ended September 30, 2023 compared to favorable development of $5.5 million for the same period in 2022 primarily related to the quota share reinsurance agreements in the AmTrust Reinsurance segment;

◦ on a current accident year basis, an underwriting loss of $12.4 million for the nine months ended September 30, 2023 compared to an underwriting loss of $24.9 million for the same period in 2022 primarily due to results within the AmTrust Reinsurance segment as discussed below;

◦ significantly higher than expected negative premium adjustments in the AmTrust Reinsurance segment related to adjustments for estimated surcharges on Workers' Compensation policies and inuring AmTrust reinsurance for certain programs in Specialty Risk and Extended Warranty cessions (collectively the "AmTrust Cession Adjustments" which are discussed in greater detail in the AmTrust Reinsurance segment), net of commission and loss adjustments, contributed an underwriting loss of $5.1 million to our reported results for the nine months ended September 30, 2022.

• foreign exchange and other losses of $0.8 million for the nine months ended September 30, 2023 compared to foreign exchange and other gains of $19.1 million for the same period in 2022.

The decrease in our year-to-date results were partly offset by the following favorable factors:

• higher total income from investment activities of $38.4 million for the nine months ended September 30, 2023 compared to $21.6 million for the same period in 2022 which was comprised of:

◦ net investment income increased to $29.1 million for the nine months ended September 30, 2023 compared to $20.9 million for the same period in 2022;

◦ realized and unrealized investment gains were $2.4 million for the nine months ended September 30, 2023 compared to realized and unrealized gains of $2.8 million for the same period in 2022;

◦ interest in income of equity method investments was $6.9 million for the nine months ended September 30, 2023 compared to interest in loss of equity method investments of $2.1 million for the same period in 2022.

• corporate general and administrative expenses decreased to $13.8 million for the nine months ended September 30, 2023 compared to $15.4 million for the same period in 2022.

Net income (loss)

Net income for the three months ended March 31, 2024 was $1.5 million compared to net loss of $11.3 million for the same respective period in 2023.

The increase in our financial results for the first quarter of 2024 compared to the first quarter of 2023 was primarily due to:

• total income from investment activities of $17.1 million for the three months ended March 31, 2024 compared to $10.5 million for the same period in 2023 which was comprised of:

◦ realized and unrealized investment gains increased to $8.8 million for the three months ended March 31, 2024 compared to gains of $1.0 million for the same period in 2023;

◦ interest in income of equity method investments of $0.6 million for the three months ended March 31, 2024 compared to an interest in loss of $0.1 million for the same period in 2023;

◦ net investment income decreased to $7.7 million for the three months ended March 31, 2024 compared to $9.5 million for the same period in 2023.

• an underwriting loss of $7.5 million for the three months ended March 31, 2024 compared to an underwriting loss of $8.3 million in the same period in 2023 largely due to:

◦ adverse prior year loss development ("PPD") of $6.6 million in the first quarter of 2024 compared to adverse PPD of $3.7 million during the same period in 2023;

◦ on a current accident year basis, underwriting loss was $1.0 million for the three months ended March 31, 2024 compared to an underwriting loss of $4.6 million for the same period in 2023.

• corporate general and administrative expenses decreased to $5.3 million for the three months ended March 31, 2024 compared to $7.0 million for the same period in 2023;

• foreign exchange and other gains increased to $2.1 million for the three months ended March 31, 2024, compared to foreign exchange and other losses of $2.8 million for the same period in 2023.

Net Premiums Written

The tables below compare net premiums written by our reportable segments, reconciled to the total consolidated net premiums written for the three and nine months ended September 30, 2023 and 2022:

For the Three Months Ended September 30, 2023 2022 Change in

($ in thousands) Total Total $

Diversified Reinsurance

$ 6,727 $ 6,027 $ 700

AmTrust Reinsurance 1,898 (805) 2,703

Total $ 8,625 $ 5,222 $ 3,403

For the Nine Months Ended September 30, 2023 2022 Change in

The table below compares net premiums written by our reportable segments, reconciled to the total consolidated net premiums written for the three months ended March 31, 2024 and 2023:

For the Three Months Ended March 31, 2024 2023 Change in

($ in thousands) Total Total $

3 unchanged sentences

Total $ 8,314 $ 760 $ 7,554

Net premiums written for the three and nine months ended September 30, 2023 increased to $8.6 million and $16.3 million, respectively, compared to net premiums written of $5.2 million and $(1.9) million for the same respective periods in 2022:

• Premiums written in the Diversified Reinsurance segment increased by $0.7 million and $3.5 million for the three and nine months ended September 30, 2023, respectively, compared to the same respective periods in 2022 due to growth in direct premiums for Credit Life programs written by Maiden LF and Maiden GF.

• Premiums written in the AmTrust Reinsurance segment increased by $2.7 million and $14.6 million for the three and nine months ended September 30, 2023 compared to the same respective periods in 2022.

The significant negative

written premiums in the prior year period are primarily related to $15.8 million of AmTrust Cession Adjustments for the nine months ended September 30, 2022.

Net premiums written for the three months ended March 31, 2024 increased to $8.3 million compared to net premiums written of $0.8 million for the same period in 2023:

• Premiums written in the Diversified Reinsurance segment increased by $2.0 million for the three months ended March 31, 2024 compared to the same period in 2023 due to growth in direct premiums for Credit Life programs written by Maiden LF and Maiden GF.

• Premiums written in the AmTrust Reinsurance segment increased by $5.5 million for the three months ended March 31, 2024 compared to the same period in 2023.

The negative written premiums in the prior year period reflect cession adjustments of $6.1 million due to the cancellation of cases in one specific program within Specialty Risk and Extended Warranty for the three months ended March 31, 2023.

Please refer to the analysis below of our Diversified Reinsurance and AmTrust Reinsurance segments for further details.

Net Premiums Earned

Net premiums earned increased by $0.2 million and $8.7 million for the three and nine months ended September 30, 2023, respectively, compared to the same respective periods in 2022.

The tables below compares net premiums earned by our reportable segments, reconciled to the total consolidated net premiums earned, for the three and nine months ended September 30, 2023 and 2022:

For the Three Months Ended September 30, 2023 2022 Change in

($ in thousands) Total Total $

Diversified Reinsurance

$ 7,207 $ 6,932 $ 275

AmTrust Quota Share Reinsurance

5,272 5,319 (47)

$ 12,479 $ 12,251 $ 228

For the Nine Months Ended September 30, 2023 2022 Change in

Net premiums earned increased by $3.4 million for the three months ended March 31, 2024 compared to the same period in 2023.

The table below compares net premiums earned by our reportable segments, reconciled to the total consolidated net premiums earned, for the three months ended March 31, 2024 and 2023:

For the Three Months Ended March 31, 2024 2023 Change in

($ in thousands) Total Total $

4 unchanged sentences

$ 12,408 $ 9,002 $ 3,406

Net premiums earned in the Diversified Reinsurance segment for the three and nine months ended September 30, 2023 increased by $0.3 million or 4.0% and $1.9 million or 9.3% compared to the same respective periods in 2022 mainly due to growth in Credit Life programs written by Maiden LF and Maiden GF.

Net premiums earned in the Diversified Reinsurance segment for the three months ended March 31, 2024 increased by $1.5 million or 20.3% compared to the same period in 2023 mainly due to growth in Credit Life programs written by Maiden LF and Maiden GF.

Please refer to the analysis of our Diversified Reinsurance segment for further discussion.

Net premiums earned in the AmTrust Reinsurance segment for the three and nine months ended September 30, 2023 decreased by $47.0 thousand and increased by $6.8 million compared to the same respective periods in 2022.

The year-to-date movement is primarily due to significant negative earned premium adjustments made in the first quarter of 2022.

Net premiums earned in the AmTrust Reinsurance segment for the three months ended March 31, 2024 increased by $1.9 million compared to the same period in 2023 primarily due to negative earned premium adjustments made in 2023.

Please refer to the analysis of our AmTrust Reinsurance segment for further discussion.

3 unchanged sentences

Net Investment Income

Net investment income increased by $2.4 million or 36.3% and $8.2 million or 39.5% for the three and nine months ended September 30, 2023, respectively, compared to the same respective periods in 2022.

Annualized average book yields increased to 4.3% and 4.1% for the three and nine months ended September 30, 2023, respectively, compared to 2.2% and 2.0% for the same respective periods in 2022 due to the following factors:

• 37.8% of our fixed income investments as of September 30, 2023 are floating rate investments which enabled these investments to respond to the higher interest rate environment more quickly;

• higher crediting interest rate on our funds withheld balance with AmTrust which increased to 3.5% in 2023 from 2.1% in 2022, on an average ending balances of $250.0 million and $317.1 million during the three and nine months ended September 30, 2023, respectively;

• higher weighted average interest rate on our loan to related party of $168.0 million which increased to 7.3% and 6.9% for the three and nine months ended September 30, 2023, respectively, compared to 4.2% and 3.0% for the same respective periods in 2022.

Average aggregate fixed income assets at September 30, 2023 decreased by 40.6% compared to September 30, 2022 due to the continued run-off of reinsurance liabilities previously written on prospective risks, resulting in negative operating cash flows as we run-off our existing reinsurance liabilities primarily through the funds withheld receivable.

The following table details our average aggregate fixed income assets (at cost) and annualized investment book yield 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,

Net investment income decreased by $1.8 million or 19.3% for the three months ended March 31, 2024 compared to the same period in 2023 largely due to lower interest income earned on our funds withheld balance with AmTrust, which decreased by $2.4 million due to a lower average balance of $94.7 million for the three months ended March 31, 2024 compared to an average balance of $384.2 million for the same period in 2023.

Annualized average book yields increased to 4.6% for the three months ended March 31, 2024 compared to 3.7% for the same period in 2023 due to the following factors:

• Floating rate investments comprise 43.2% of our fixed income investments as of March 31, 2024 which enabled the portfolio to respond to the higher interest rate environment more quickly;

• Loan to related party carried a higher weighted average interest rate on a balance of $168.0 million which increased to 7.3% for the three months ended March 31, 2024 compared to 6.4% for the same period in 2023;

partly offset by:

• Funds withheld receivable earned an annual interest rate of 3.5% for the three months ended March 31, 2024 and 2023 however there was lower interest income on the funds withheld receivable of $0.9 million for the three months ended March 31, 2024 compared to $3.3 million for the same period in 2023 driven by a lower average funds held balance of $94.7 million.

Average aggregate fixed income assets at March 31, 2024 decreased by 39.0% compared to March 31, 2023 due to continued run-off of our reinsurance liabilities previously written on prospective risks primarily through the funds withheld receivable.

For the three months ended March 31, 2024, we experienced positive operating cash flows due to excess collateral of $15.3 million released by AmTrust through the funds withheld receivable as we run-off our existing reinsurance liabilities in the AmTrust Reinsurance segment.

The following table details our average aggregate fixed income assets (at cost) and annualized investment book yield for the three months ended March 31, 2024 and 2023:

For the Three Months Ended March 31,

($ in thousands) 2024 2023

6 unchanged sentences

Net Realized and Unrealized Investment Gains (Losses)

Net realized and unrealized investment gains of $0.2 million and $2.4 million were recognized for the three and nine months ended September 30, 2023, respectively, compared to net realized and unrealized investment losses of $1.6 million and gains of $2.8 million for the same respective periods in 2022.

Total net realized and unrealized investment gains (losses) for the three and nine months ended September 30, 2023 and 2022 are summarized in the table below by investment category:

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

Net realized and unrealized investment gains of $8.8 million were recognized for the three months ended March 31, 2024 compared to net realized and unrealized investment gains of $1.0 million for the same period in 2023.

Total net realized and unrealized investment gains for the three months ended March 31, 2024 and 2023 are summarized in the table below by investment category:

For the Three Months Ended March 31,

($ in thousands) 2024 2023

Net realized gains (losses):

Net realized (losses) gains:

Fixed income assets (1)

$ (301) $ 96 $ (1,087) $ 1,192

Other investments, including equity securities — 176

2 unchanged sentences

Other investments, including equity securities 8,968 829

Total net unrealized gains (losses) 545 (1,779) 3,295 1,466

Total net realized and unrealized investment gains (losses) $ 244 $ (1,572) $ 2,394 $ 2,848

Total net unrealized gains 8,968 829

Total net realized and unrealized investment gains $ 8,750 $ 1,005

(1) Fixed income assets includes AFS securities as well as cash, restricted cash, funds withheld receivable, and loan to related party.

Total net realized and unrealized investment gains increased by $7.7 million for the three months ended March 31, 2024 compared to the same period in 2023 primarily due to unrealized gains in the private equity asset class of $7.9 million during the current year period.

Interest in Income (Loss) of Equity Method Investments

The Company recognized interest in income of equity method investments of $2.2 million and $6.9 million for the three and nine months ended September 30, 2023, respectively, compared to an interest in the loss of equity method investments of $0.4 million and $2.1 million for the same respective periods in 2022.

Equity method investments consist of real estate investments of $48.5 million and other investments of $30.9 million as of September 30, 2023.

Interest in income (loss) of equity method investments for the three and nine months ended September 30, 2023 and 2022 is detailed by investment category in the following table:

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

Total interest in income of equity method investments of $0.6 million were recognized for the three months ended March 31, 2024 compared to an interest in the loss of equity method investments of $0.1 million for the same period in 2023.

Equity method investments consist of real estate investments of $52.6 million and other investments of $29.5 million as of March 31, 2024.

Interest in income (loss) of equity method investments for the three months ended March 31, 2024 and 2023 is detailed by investment category in the following table:

For the Three Months Ended March 31,

($ in thousands) 2024 2023

4 unchanged sentences

Net Loss and LAE

Net loss and LAE decreased by $2.3 million for the third quarter of 2023 compared to the same period in 2022 driven by a decline in current year losses.

Net losses were impacted by net adverse prior year loss development of $7.8 million for the third quarter of 2023 compared to net adverse prior year loss development of $0.8 million for the same period in 2022.

Excluding adverse development, the current year losses were $7.3 million for the third quarter of 2023 compared to $16.6 million for the third quarter of 2022.

Net loss and LAE increased by $14.5 million for the nine months ended September 30, 2023 compared to the same period in 2022 largely due to adverse prior year loss development in both reporting segments.

Net losses were impacted by net adverse prior year loss development of $16.0 million for the nine months ended September 30, 2023 compared to favorable prior year reserve development of $5.5 million for the same period in 2022.

Net loss and LAE increased by $1.8 million for the first quarter of 2024 compared to the same period in 2023 driven by an increase in net premiums earned in the AmTrust Reinsurance segment.

Net losses were impacted by net adverse prior year loss development of $6.6 million for the first quarter of 2024 compared to net adverse prior year loss development of $3.7 million for the same period in 2023.

Excluding adverse development, the current year losses were $5.1 million for the first quarter of 2024 compared to $6.2 million for the first quarter of 2023.

The cessation of active reinsurance underwriting on prospective risks included the termination of the AmTrust Quota Share and European Hospital Liability Quota Share effective January 1, 2019.

1 unchanged sentence

Commission and Other Acquisition Expenses

Commission and other acquisition expenses decreased by $0.1 million or 1.1% and increased by $1.7 million or 13.3% for the three and nine months ended September 30, 2023, respectively, compared to the same respective periods in 2022.

The year-to-date movement was driven by lower earned premium adjustments in the AmTrust Reinsurance segment in 2023 compared to 2022 which resulted in a corresponding increase in commission costs and brokerage fees.

Please see further discussion in the individual segment analysis below.

Commission and other acquisition expenses increased by $1.4 million or 32.1% for the three months ended March 31, 2024 compared to the same period in 2023.

The movement was driven by lower earned premium adjustments in the AmTrust Reinsurance segment for the three months ended March 31, 2024 compared to the same period in 2023 which resulted in a corresponding increase in commission costs and brokerage fees.

Please see further discussion in the individual segment analysis further below.

General and Administrative Expenses

General and administrative expenses include both segment and corporate expenses segregated for analytical purposes as a component of underwriting income.

Total general and administrative expenses increased by $0.3 million, or 4.6% and decreased by $0.9 million or 3.8% for the three and nine months ended September 30, 2023, respectively, compared to the same respective periods in 2022.

Corporate expenses decreased for the nine months ended September 30, 2023 largely due to lower stock-based incentive compensation costs which were $1.4 million compared to $2.5 million for the same period in 2022.

General and administrative expenses for the three and nine months ended September 30, 2023 and 2022 were comprised of:

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

Total general and administrative expenses decreased by $2.0 million, or 20.3% for the three months ended March 31, 2024 compared to the same period in 2023.

Corporate expenses decreased for the three months ended March 31, 2024 largely due to lower incentive compensation costs (including lower stock-based awards which were $0.4 million compared to $0.8 million for the same period in 2023).

General and administrative expenses for the three months ended March 31, 2024 and 2023 were comprised of:

For the Three Months Ended March 31,

($ in thousands) 2024 2023

2 unchanged sentences

General and administrative expenses – corporate

3,910 4,069 13,809 15,383

Total general and administrative expenses

1 unchanged sentence

Interest and Amortization Expenses

Total interest and amortization expenses related to outstanding senior notes issued by Maiden Holdings in 2016 and Maiden NA in 2013 ("Senior Notes") were $4.8 million and $13.5 million for the three and nine months ended September 30, 2023, respectively, compared to $4.8 million and $14.5 million for the same respective periods in 2022.

This included interest expense incurred on the Senior Notes for the three and nine months ended September 30, 2023 and 2022 of $4.8 million and $14.3 million, respectively.

Total interest and amortization expenses related to outstanding senior notes issued by Maiden Holdings in 2016 and Maiden NA in 2013 ("Senior Notes") were $4.8 million for the three months ended March 31, 2024 compared to $3.8 million for the same period in 2023.

This included interest expense incurred on the Senior Notes for the three months ended March 31, 2024 and 2023 of $4.8 million, respectively.

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

Due to a change in the amortization method for the 2013 Senior Notes in 2023, total amortization expenses were $37.0 thousand and $(0.9) million for the three and nine months ended September 30, 2023, respectively, compared to amortization expenses of $0.1 million and $0.2 million for the same respective periods in 2022.

During the nine months ended September 30, 2023, the Company realized a gain of $39.9 thousand due to the partial repurchase of the 2013 Senior Notes which was offset against total interest and amortization expenses as reported above.

Due to a change in the amortization method for the 2013 Senior Notes in the prior year period, total amortization expenses were $39.0 thousand for the three months ended March 31, 2024 compared to amortization income of $1.0 million for the same period in 2023.

Please refer to " Notes to Condensed Consolidated Financial Statements (unaudited) Note 7.

Long Term Debt " for further details on the Senior Notes.

The weighted average effective interest rate for the Senior Notes was 7.6% for the three and nine months ended September 30, 2023 and 2022, respectively.

The weighted average effective interest rate for the Senior Notes was 7.6% for the three months ended March 31, 2024 and 2023, respectively.

Foreign Exchange and Other Gains (Losses)

Net foreign exchange and other gains of $4.6 million and losses of $0.8 million were realized during the three and nine months ended September 30, 2023, respectively, compared to net foreign exchange and other gains of $8.6 million and gains of $19.1 million for the same respective periods in 2022.

At September 30, 2023, net foreign exchange losses on a year-to-date basis were primarily driven by exposures to euro, British pound and other non-USD denominated net loss reserves and insurance related liabilities in excess of foreign currency assets.

Our non-USD denominated liabilities at September 30, 2023 included net loss reserves of $276.3 million.

Our foreign currency asset exposures at September 30, 2023 included $167.2 million of fixed maturity securities managed by our investment managers who have the discretion to hold foreign currency exposures as part of their total return strategy as well as $26.0 million of equity method real estate investments denominated in Canadian dollars.

Net foreign exchange gains of $4.6 million in the third quarter of 2023 were driven by modest strengthening of the U.S.

dollar on the re-measurement of net loss reserves and insurance related liabilities denominated in British pound and euro during the period.

Net foreign exchange losses of $0.1 million for the nine months ended September 30, 2023 were attributable to the weakening of the U.S.

dollar on the re-measurement of net loss reserves and insurance related liabilities denominated in British pound and euro since the start of the year.

Net foreign exchange gains of $8.6 million and $20.5 million during the three and nine months ended September 30, 2022, respectively, were attributable to the strengthening of the U.S.

dollar on the re-measurement of net loss reserves and insurance related liabilities denominated in British pound and euro.

Net foreign exchange and other gains of $2.1 million were realized during the three months ended March 31, 2024 compared to net foreign exchange and other losses of $2.8 million for the same period in 2023.

At March 31, 2024, net foreign exchange gains on a year-to-date basis were primarily driven by exposures to euro, British pound and other non-USD denominated net loss reserves and insurance related liabilities in excess of foreign currency assets.

Our non-USD denominated liabilities at March 31, 2024 included net loss reserves of $268.2 million.

Our foreign currency asset exposures at March 31, 2024 included $164.9 million of fixed maturity securities managed by our investment managers who have the discretion to hold foreign currency exposures as part of their total return strategy, $28.6 million of equity method real estate investments denominated in Canadian dollars, as well as $15.8 million of funds withheld receivable.

Net foreign exchange gains of $2.1 million in the first quarter of 2024 were largely attributable to the strengthening of the U.S.

dollar on the re-measurement of net loss reserves and insurance related liabilities denominated in the British pound and euro during the period.

Net foreign exchange losses of $2.0 million during the three months ended March 31, 2023 were attributable to the weakening of the U.S.

dollar on the re-measurement of net loss reserves and insurance related liabilities denominated in the British pound and euro.

Underwriting Results by Reportable Segment

Diversified Reinsurance Segment

The underwriting results for our Diversified Reinsurance segment for the three and nine months ended September 30, 2023 and 2022 were as follows:

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

The underwriting results for our Diversified Reinsurance segment for the three months ended March 31, 2024 and 2023 were as follows:

For the Three Months Ended March 31,

($ in thousands) 2024 2023

5 unchanged sentences

$ 8,991 $ 7,471

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

Other insurance revenue (expense), net 46 (59)

Net loss and LAE

4 unchanged sentences

(2,090) (2,589)

Underwriting (loss) income $ (2,541) $ 40 $ (7,648) $ 264

Underwriting (loss) income by business unit is detailed in the table below for the Diversified Reinsurance segment 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,

Underwriting loss

$ (272) $ (1,989)

Underwriting loss by business unit is detailed in the table below for the Diversified Reinsurance segment for the three months ended March 31, 2024 and 2023:

For the Three Months Ended March 31,

($ in thousands) 2024 2023

2 unchanged sentences

Other run-off lines 471 (745)

Underwriting (loss) income $ (2,541) $ 40 $ (7,648) $ 264

Underwriting results in the Diversified Reinsurance segment decreased significantly for the three and nine months ended September 30, 2023 compared to the same respective periods in 2022 primarily due to underwriting losses in GLS and International driven by higher GLS operating costs during the three and nine months ended September 30, 2023 and adverse development on International business and other runoff lines as discussed further below under the net losses and LAE section.

Premiums — The growth in written and earned premium was the result of new Credit Life programs written by Maiden LF and Maiden GF in the three and nine months ended September 30, 2023.

Gross premiums written increased by $0.6 million or 9.3% and increased by $3.2 million or 18.7% for the three and nine months ended September 30, 2023, respectively, compared to the same respective periods in 2022.

Net premiums written increased by $0.7 million or 11.6% and increased by $3.5 million or 21.4% during the three and nine months ended September 30, 2023, compared to the same respective periods in 2022.

Net premiums earned increased by $0.3 million or 4.0% and increased by $1.9 million or 9.3% during the three and nine months ended September 30, 2023, respectively, compared to the same respective periods in 2022.

Other Insurance (Expense) Revenue, Net — Other insurance (expense) revenue, net includes fee related income generated from our GLS business, fair value changes in underwriting-related derivatives related to certain coverages on retroactive reinsurance contracts written by GLS, and fee income derived from our IIS business not directly associated with premium revenue assumed by the Company as specified in the table below.

Total other insurance (expense) revenue, net decreased by $0.4 million and $0.9 million for the three and nine months ended September 30, 2023, respectively, compared to the same respective periods in 2022 primarily due to fair value changes in non-hedged underwriting-related derivatives on GLS contracts.

The tables below show other insurance revenue by source for the three and nine months ended September 30, 2023 and 2022:

For the Three Months Ended September 30, 2023 2022 Change

($ in thousands)

International $ 3 $ 24 $ (21)

Changes in fair value of non-hedged underwriting-related derivatives — 306 (306)

Other service fee income (19) 38 (57)

Total other insurance (expense) revenue, net $ (16) $ 368 $ (384)

For the Nine Months Ended September 30, 2023 2022 Change

Underwriting loss $ (272) $ (1,989)

Underwriting results in the Diversified Reinsurance segment improved for the three months ended March 31, 2024 compared to the same respective period in 2023 primarily due to favorable prior year reserve development on GLS and other runoff lines as discussed further below under the net losses and LAE section.

Premiums — The growth in written and earned premium was the result of new Credit Life programs written by Maiden LF and Maiden GF in the three months ended March 31, 2024.

As discussed in the "Overview" section, Maiden LF and Maiden GF entered into a renewal rights transaction with AmTrust Nordic on May 3, 2024 which is expected to cover the majority of Maiden LF and Maiden GF's primary business written in Sweden, Norway and other Nordic countries.

Gross premiums written increased by $2.0 million or 28.9% for the three months ended March 31, 2024 compared to the same period in 2023.

Net premiums written increased by $2.0 million or 30.2% during the three months ended March 31, 2024, compared to the same period in 2023.

Net premiums earned increased by $1.5 million or 20.3% during the three months ended March 31, 2024 compared to the same period in 2023.

Other insurance revenue (expense), net — Other insurance revenue (expense), net includes fee related income generated from our GLS business, fair value changes in underwriting-related derivatives related to certain coverages on retroactive reinsurance contracts written by GLS, and fee income derived from our IIS business not directly associated with premium revenue assumed by the Company as specified in the table below.

Other insurance revenue (expense), net increased by $0.1 million for the three months ended March 31, 2024 compared to the same period in 2023 primarily due to fair value changes in non-hedged underwriting-related derivatives on GLS contracts.

The table below shows other insurance revenue by source for the three months ended March 31, 2024 and 2023:

For the Three Months Ended March 31, 2024 2023 Change

($ in thousands)

2 unchanged sentences

Other service fee income 46 56 (10)

Total other insurance revenue, net $ 3 $ 888 $ (885)

Net Loss and LAE — Net loss and LAE increased by $2.2 million and $8.2 million for the three and nine months ended September 30, 2023, respectively, compared to the same respective periods in 2022 primarily due to new premium growth in Credit Life programs written by Maiden LF and Maiden GF as well as adverse prior year loss development experienced in International and other run-off lines .

The net loss and LAE was impacted by net adverse prior year loss development of $1.9 million and $3.9 million for the three and nine months ended September 30, 2023 , respectively, compared to favorable prior year development of $0.6 million and $2.0 million for the same respective periods in 2022.

The net adverse loss development for the three and nine months ended September 30, 2023 was primarily from a German auto program in run-off, along with development in European Capital Solutions and other runoff business lines.

It also included the recognition of expected credit losses on reinsurance recoverable on unpaid losses for the nine months ended September 30, 2023.

The net favorable loss development for the three and nine months ended September 30, 2022 was driven by German Auto Programs and GLS partly offset by adverse development in European Capital Solutions.

Commission and Other Acquisition Expenses — Commission and other acquisition expenses decreased by 0.6% and 1.3% for the three and nine months ended September 30, 2023, respectively, compared to the same respective periods in 2022.

General and Administrative Expenses — General and administrative expenses increased by $0.3 million or 16.6% and increased by $0.9 million or 12.2% for the three and nine months ended September 30, 2023, respectively, compared to the same respective periods in 2022.

Other insurance revenue (expense), net $ 46 $ (59) $ 105

Net Loss and LAE — Net loss and LAE decreased by $0.2 million for the three months ended March 31, 2024 compared to the same period in 2023 primarily due to favorable prior year loss development experienced in GLS and other run-off lines .

The net loss and LAE was impacted by net favorable prior year loss development of $0.7 million for the three months ended March 31, 2024 compared to adverse prior year development of $0.8 million for the same period in 2023.

The net favorable prior year loss development for the three months ended March 31, 2024 was primarily from GLS and other runoff business lines.

The net adverse development for the three months ended March 31, 2023 was due to unfavorable reserve development in other runoff business and also included the recognition of expected credit losses on reinsurance recoverable on unpaid losses.

Commission and Other Acquisition Expenses — Commission and other acquisition expenses increased by $0.6 million or 17.5% for the three months ended March 31, 2024 compared to the same period in 2023 due to growth in new Credit Life programs written by Maiden LF and GF.

General and Administrative Expenses — General and administrative expenses decreased by $0.5 million or 19.3% for the three months ended March 31, 2024 compared to the same period in 2023 largely due to lower staff incentive compensation.

AmTrust Reinsurance Segment

The AmTrust Reinsurance segment reported an underwriting loss of $8.4 million and $20.8 million during the three and nine months ended September 30, 2023, respectively, compared to an underwriting loss of $12.7 million and $19.7 million for the same respective periods in 2022.

The underwriting results for the AmTrust Reinsurance segment for the three and nine months ended September 30, 2023 and 2022 were as follows:

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

The AmTrust Reinsurance segment reported an underwriting loss of $7.3 million during the three months ended March 31, 2024 compared to an underwriting loss of $6.3 million for the same period in 2023.

The underwriting results for the AmTrust Reinsurance segment for the three months ended March 31, 2024 and 2023 were as follows:

For the Three Months Ended March 31,

($ in thousands) 2024 2023

10 unchanged sentences

General and administrative expenses

(661) (521) (2,062) (2,281)

Underwriting loss $ (7,252) $ (6,264)

Premiums — The tables below show net premiums written by category for the three and nine months ended September 30, 2023 and 2022, respectively:

For the Three Months Ended September 30, 2023 2022 Change in

($ in thousands) Total Total $

Net Premiums Written

Small Commercial Business

$ (160) $ (636) $ 476

Specialty Program

Specialty Risk and Extended Warranty

2,058 (126) 2,184

Total AmTrust Reinsurance

$ 1,898 $ (805) $ 2,703

For the Nine Months Ended September 30, 2023 2022 Change in

Premiums — The table below shows net premiums written by category for the three months ended March 31, 2024 and 2023:

For the Three Months Ended March 31, 2024 2023 Change in

($ in thousands) Total Total $

8 unchanged sentences

$ (505) $ (6,013) $ 5,508

The negative premiums for the nine months ended September 30, 2023 and September 30, 2022 reflect the termination of the AmTrust Quota Share and the European Hospital Liability Quota Share as of January 1, 2019 which has resulted in no new business written under these contracts since 2018.

The negative gross and net premiums written for the nine months ended September 30, 2023 reflect cession adjustments of $6.1 million due to the cancellation of cases in a certain program within Specialty Risk and Extended Warranty.

The negative gross and net premiums written for the nine months ended September 30, 2022 reflect the AmTrust Cession Adjustments which consist of higher than expected adjustments related to the following items:

• $11.0 million of premium reductions on Workers Compensation policy surcharges in Small Commercial Business subsequent to the termination of the AmTrust Quota Share;

• $4.8 million of premium reductions to AmTrust's inuring reinsurance for certain programs in Specialty Risk and Extended Warranty which reduced the amount of premium ceded to Maiden.

Net premiums earned decreased by $47.0 thousand and increased by $6.8 million for the three and nine months ended September 30, 2023, respectively, compared to the same respective periods in 2022.

The year-to-date movement was primarily driven by lower negative premium adjustments during 2023 compared to significantly higher AmTrust Cession Adjustments made in 2022, largely due to negative premiums earned in Small Commercial Business policies.

The tables below provide detail on net premiums earned in the three and nine months ended September 30, 2023 and 2022:

For the Three Months Ended September 30, 2023 2022 Change in

($ in thousands) Total Total $

Net Premiums Earned

Small Commercial Business

$ (160) $ (636) $ 476

Specialty Program

Specialty Risk and Extended Warranty

5,432 5,998 (566)

Total AmTrust Reinsurance

$ 5,272 $ 5,319 $ (47)

For the Nine Months Ended September 30, 2023 2022 Change in

The negative premiums for the three months ended March 31, 2024 and March 31, 2023 reflect the termination of the AmTrust Quota Share and the European Hospital Liability Quota Share as of January 1, 2019 which has resulted in no new business written under these contracts since 2018.

The negative gross and net premiums written for the three months ended March 31, 2023 reflect cession adjustments of $6.1 million due to the cancellation of cases in a certain program within Specialty Risk and Extended Warranty.

Net premiums earned increased by $1.9 million for the three months ended March 31, 2024 compared to the same period in 2023 primarily due to lower negative premium adjustments during the first quarter of 2024.

The table below provides detail on net premiums earned in the three months ended March 31, 2024 and 2023:

For the Three Months Ended March 31, 2024 2023 Change in

($ in thousands) Total Total $

8 unchanged sentences

$ 3,417 $ 1,531 $ 1,886

Net Loss and LAE — Net loss and LAE decreased by $4.4 million and increased by $6.3 million for the three and nine months ended September 30, 2023, respectively, compared to the same respective periods in 2022 driven by a decline in current year losses offset by higher adverse prior year loss development under the AmTrust Quota Share for the nine months ended September 30, 2023.

The table below shows prior year loss development for the AmTrust Reinsurance segment 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

Net Loss and LAE — Net loss and LAE increased by $2.0 million for the three months ended March 31, 2024 compared to the same period in 2023 driven by higher adverse prior year loss development under the European Hospital Liability Quota Share for the three months ended March 31, 2024.

The table below shows prior year loss development for the AmTrust Reinsurance segment for the three months ended March 31, 2024 and 2023:

For the Three Months Ended March 31,

Prior Year Loss Development adverse (favorable) ($ in thousands)

3 unchanged sentences

Total AmTrust Reinsurance Prior Year Development $ 7,218 $ 2,899

Net adverse prior year loss development was $6.0 million and $12.0 million during the three and nine months ended September 30, 2023, respectively compared to net adverse development of $1.4 million and favorable development of $3.5 million for the same respective periods in 2022.

Net adverse prior year loss development for the three and nine months ended September 30, 2023 was primarily due to 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 $3.7 million (€3.4 million) 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 in the AmTrust Quota Share.

The net favorable prior year loss development for the nine months ended September 30, 2022 included $5.3 million 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 $1.8 million 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 $3.7 million (€3.4 million for commutation of French Hospital Liability policies as described in "Note 10.

Related Party Transactions" ;

partly offset by favorable runoff of Workers Compensation business.

Commission and Other Acquisition Expenses — Commission and other acquisition expenses decreased by $38.0 thousand and increased by $1.8 million for the three and nine months ended September 30, 2023, respectively, compared to the same respective periods in 2022.

The year-to-date movement was driven by lower negative earned premium adjustments in 2023 compared to significant AmTrust Cession Adjustments made last year, which resulted in negative premiums earned in Small Commercial Business policies and a corresponding reduction in commission costs and brokerage fees in 2022 .

General and Administrative Expenses — General and administrative expenses increased by $0.1 million and decreased by $0.2 million for the three and nine months ended September 30, 2023, respectively, compared to the same respective periods in 2022.

Net adverse prior year loss development was $7.2 million during the three months ended March 31, 2024 compared to net adverse development of $2.9 million for the same period in 2023.

Net adverse prior year loss development for the three months ended March 31, 2024 was primarily due to the AmTrust Quota Share contract, with European Hospital Liability also producing adverse loss development.

In the AmTrust Quota Share, U.S.

Program business experienced continuing adverse development from construction defect coverage for accident years 2015 to 2018 as new claims emergence was again far greater than expected;

this was partly offset by continued favorable development within Workers Compensation business for accident years 2014 to 2017.

Net adverse loss development on European Hospital Liability Quota Share was primarily driven by emergence of loss data from adverse claim verdicts on older claims, resulting in strengthening of loss development tail on underwriting years 2011 to 2014.

Net adverse prior year loss development for the three months ended March 31, 2023 was driven by unfavorable movements in General Liability, Auto Liability and Specialty Risk & Extended Warranty partly offset by continued favorable development in Workers Compensation.

As of March 31, 2024, the reinsurance recoverable on unpaid losses under the LPT/ADC Agreement was $520.8 million.

The LPT/ADC Agreement provides Maiden Reinsurance with $155.0 million in adverse PPD cover over its carried AmTrust Quota Share loss reserves at December 31, 2018.

The reinsurance recoverable includes the deferred gain liability under the LPT/ADC Agreement of $75.9 million.

At March 31, 2024, there was $79.1 million remaining in available coverage under the LPT/ADC Agreement.

Net adverse PPD of $7.2 million for the three months ended March 31, 2024 includes the $5.0 million recoverable under the LPT/ADC Agreement that is expected to be recognized as future GAAP income over time as recoveries are received subject to the provisions of the LPT/ADC Agreement and the applicable GAAP accounting rules.

For the three months ended March 31, 2024 and 2023, respectively, $5.0 million and $1.6 million of the adverse PPD from the AmTrust Quota Share reported in the table above, respectively, are covered by the LPT/ADC Agreement.

To the extent adverse loss development in European Hospital Liability continues, the European Hospital Liability Quota Share may have a more significant negative impact on our results than the AmTrust Quota Share, in particular once recoveries from the LPT/ADC Agreement commence and are recognized as GAAP income pursuant to the applicable GAAP accounting rules.

Commission and Other Acquisition Expenses — Commission and other acquisition expenses increased by $0.7 million for the three months ended March 31, 2024 compared to the same period in 2023 primarily due to higher earned premiums in Specialty Risk and Extended Warranty programs.

General and Administrative Expenses — General and administrative expenses increased by $0.1 million for the three months ended March 31, 2024 compared to the same period in 2023.

Liquidity and Capital Resources

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The jurisdictions in which our operating subsidiaries are licensed to write business impose regulations requiring companies to maintain or meet statutory solvency and liquidity requirements and also place restrictions on the declaration and payment of dividends and other distributions.

As of September 30, 2023, the Company had investable assets of $976.4 million compared to $1.24 billion as of December 31, 2022.

As of March 31, 2024, the Company had investable assets of $861.7 million compared to $914.3 million as of December 31, 2023.

Investable assets include the combined total of our investments, cash and restricted cash including cash equivalents, loan to a related party and funds withheld receivable.

Our investable assets decreased by $266.6 million during the nine months ended September 30, 2023 due to the continued run-off of our reinsurance portfolio liabilities, which results in negative operating cash flows as claim payments are settled primarily from the funds withheld receivable, which decreased by $211.8 million in the nine months ended September 30, 2023.

Our investable assets decreased by $52.6 million during the three months ended March 31, 2024 due to the continued run-off of our reinsurance portfolio liabilities as claim payments were settled primarily from the funds withheld receivable, which decreased by $66.9 million in the three months ended March 31, 2024.

The regulatory and liquidity requirements of the Company's operating segments are discussed in "Management's Discussion and Analysis of Financial Condition and Results of Operations" section included under Item 7 of our Annual Report on Form 10- K for the year ended December 31, 2023, that was filed with the SEC on March 12, 2024.

3 unchanged sentences

1) the expansion of approved asset classes for investment reflecting not only Maiden Reinsurance’s solvency position but the material reduction in required capital necessary to operate its business;

and 2) the purchase of affiliated securities as demonstrated in previous preference share tender offers and the recently completed Exchange.

and 2) the purchase of affiliated securities as demonstrated in previous preference share tender offers and the Exchange.

The Investment Policy, as approved and as amended, maintains our established investment management and governance practices.

In 2023 and 2024, the Vermont DFR approved an annual dividend program to be paid by Maiden Reinsurance to Maiden NA, with notification to the Vermont DFR as dividends are paid.

Subsequent to that approval, Maiden Reinsurance paid $37.5 million in dividends to Maiden NA with $6.25 million paid to Maiden NA on a quarterly basis since approval was granted.

During the three months ended March 31, 2024, Maiden Reinsurance paid dividends of $6.3 million to Maiden NA (2023 - $6.3 million).

During the three months ended March 31, 2024 and 2023, Maiden NA did not pay any dividends to Maiden Holdings.

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

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As a result of these transactions, we are not presently engaged in any active underwriting of new prospective reinsurance business thus our net premiums written will continue to be materially lower and investment income will become a significantly larger portion of our total revenues.

We are writing new retroactive risks through GLS, however this will be smaller in relation to the run-off of our prior reinsurance business.

Despite the initial inflow of new business from GLS, the run-off of our prior reinsurance business has continued to cause significant negative operating cash flows as we run off the AmTrust Reinsurance segment reserves as shown in the cash flows table below.

We continue to expect a trend of negative overall cash flows to continue to reduce our asset base going forward through the remainder of 2023 and beyond.

We have not written any new retroactive risks through GLS since December 30, 2022, and this will be smaller in relation to the run-off of our prior reinsurance business.

During the three months ended March 31, 2024, the release of $15.3 million excess collateral by AmTrust has caused positive operating cash flows as we run off the AmTrust Reinsurance segment reserves as shown in the cash flows table further below.

We continue to expect a trend of negative investing cash flows to continue to reduce our asset base through 2024.

We expect to use funds from cash and investment portfolios, collected premiums on reinsurance contracts in force or being run-off, investment income and proceeds from investment sales and redemptions to meet our expected claims payments and operational expenses.

1 unchanged sentence

A significant portion of those liabilities are collateralized and claim payments will be funded by using this collateral which should provide sufficient funding to fulfill those obligations.

The Company’s management believes our current sources of liquidity are adequate to meet cash requirements for the next twelve months as we generally expect negative operating cash flows to be sufficiently offset by positive investing cash flows.

The Company’s management believes our current sources of liquidity are adequate to meet its cash requirements for the next twelve months as we generally expect operating cash flows to be sufficiently offset by investing cash flows.

While we continue to expect our cash flows to be sufficient to meet our cash requirements and to operate our business, our ability to execute our asset and capital management initiatives are dependent on maintaining adequate levels of unrestricted liquidity and cash flows.

Our expanded asset management strategy can be impacted by both investment specific and broader financial market conditions and may not produce the expected liquidity and cash flows these investments are designed to achieve, or the timing thereof may also be impacted by those factors.

At September 30, 2023, unrestricted cash, cash equivalents and fixed maturity investments were $69.2 million compared to $64.3 million held at December 31, 2022, an increase of $4.9 million during the nine months ended September 30, 2023.

This was primarily driven by $44.0 million of collateral released by AmTrust, partly offset by $14.3 million for interest payments on the Senior Notes, $9.5 million of net purchases for alternative investments including equity method investments, $1.9 million for common share repurchases made under the Company's authorized repurchase plan and employee tax obligations on vesting of restricted shares, as well as payments for general operating expenses.

At March 31, 2024, unrestricted cash, cash equivalents and fixed maturity investments were $62.9 million compared to $73.4 million held at December 31, 2023, an decrease of $10.5 million during the three months ended March 31, 2024.

This was primarily driven by $4.8 million for interest payments on the Senior Notes, $8.8 million of net purchases for alternative investments including equity method investments, $0.7 million for common share repurchases made under the Company's authorized repurchase plan and employee tax obligations on vesting of restricted shares as well as payments for general operating expenses of $8.1 million, partly offset by $15.3 million of collateral released by AmTrust through the funds withheld receivable during the three months ended March 31, 2024.

Please see the related discussion on investing and financing cash flows below.

The table below summarizes our operating, investing and financing cash flows for the nine months ended September 30, 2023 and 2022:

For the Nine Months Ended September 30, 2023 2022

The table below summarizes our operating, investing and financing cash flows for the three months ended March 31, 2024 and 2023:

For the Three Months Ended March 31, 2024 2023

($ in thousands)

5 unchanged sentences

Effect of exchange rate changes on foreign currency cash

Total decrease in cash, restricted cash and cash equivalents

$ (12,508) $ (5,263)

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

Cash Flows used in Operating Activities

Cash flows used in operating activities for the nine months ended September 30, 2023 was $66.0 million compared to cash flows used in operating activities of $99.8 million for the nine months ended September 30, 2022, a decrease of $33.8 million primarily due to the settlement of claim payments to AmTrust using the funds withheld receivable in the current year period whereas cash was primarily used in the prior year period.

Cash Flows provided by Investing Activities

Cash flows provided by investing activities consist primarily of proceeds from the sales and maturities of investments net of payments for investments acquired.

Net cash provided by investing activities was $51.1 million for the nine months ended September 30, 2023 compared to $119.4 million for the same period in 2022.

For the nine months ended September 30, 2023, the proceeds from the sales, maturities and calls exceeded the purchases of fixed maturity securities by $60.7 million compared to net proceeds of $153.6 million for the same respective period in 2022 as the size of the fixed income investment portfolio continues to decrease as claims payments are made for the runoff of existing loss reserves for the terminated AmTrust Quota Share and the European Hospital Liability Quota Share contracts.

Cash flows provided by investing activities included net purchases of $9.5 million for alternative investments including equity method investments during the nine months ended September 30, 2023 compared to net purchases of $34.2 million for the same respective period in 2022.

Cash Flows provided by Operating Activities

Cash flows provided by operating activities for the three months ended March 31, 2024 was $8.0 million compared to cash flows used in operating activities of $20.3 million for the three months ended March 31, 2023.

Operating cash flows were primarily driven by the release of $15.3 million excess collateral by AmTrust from the funds withheld receivable for the three months ended March 31, 2024 whereas the funds withheld receivable was primarily used for settlement of claim payments to AmTrust for the same period in 2023.

Cash Flows used in Investing Activities

Cash flows used in investing activities consist primarily of investment purchases net of proceeds from sales and maturities of investments.

Net cash used in investing activities was $19.7 million for the three months ended March 31, 2024 compared to net cash provided by investing activities of $15.3 million for the same period in 2023.

For the three months ended March 31, 2024, the purchases of fixed maturity securities exceeded the proceeds from the sales, maturities and calls by $10.8 million compared to net proceeds of $6.3 million for the same period in 2023.

The size of the fixed income investment portfolio will diminish as claims payments are made for the runoff of existing loss reserves for the terminated AmTrust Quota Share and the European Hospital Liability Quota Share contracts.

Cash flows used in investing activities included net purchases of $8.8 million for alternative investments including equity method investments during the three months ended March 31, 2024 compared to net proceeds from alternative investments of $9.0 million for the same period in 2023.

Cash Flows used in Financing Activities

Cash flows used in financing activities were $2.0 million for the nine months ended September 30, 2023 compared to $11.0 million for the same respective period in 2022.

During the nine months ended September 30, 2023, the Company repurchased 820,105 common shares at an average price per share of $1.93 for a total cost of $1.6 million under the Company's authorized common share repurchase plan.

During the nine months ended September 30, 2022, the Company repurchased 1,581,509 preference shares at an average price per share of $6.31 for an aggregate total consideration of $10.0 million pursuant to the 2021 Preference Share Repurchase Program.

No dividends on common shares were paid during the nine months ended September 30, 2023 and 2022.

Cash flows used in financing activities were $0.7 million for the three months ended March 31, 2024 compared to $0.3 million for the same period in 2023.

During the three months ended March 31, 2024, the Company repurchased 352,111 common shares at an average price per share of $1.91 for a total of $0.7 million used under the Company's authorized common share repurchase plan.

No dividends on common shares were paid during the three months ended March 31, 2024 and 2023.

Our Board of Directors have not declared any common share dividends since the third quarter of 2018.

1 unchanged sentence

The Company's restrictions, collateral and specific requirements are discussed in " Management's Discussion and Analysis of Financial Condition and Results of Operations " section included under Item 7 of our Annual Report on Form 10-K for the year ended December 31, 2023, that was filed with the SEC on March 12, 2024.

At September 30, 2023 and December 31, 2022, restricted cash and cash equivalents and fixed maturity investments used as collateral were $218.4 million and $296.8 million, respectively.

This collateral represents 75.9% and 82.2% of the fair value of total fixed maturity investments, cash, restricted cash and equivalents at September 30, 2023 and December 31, 2022, respectively.

Please also refer to " Part I, Item 1 - Notes to Condensed Consolidated Financial Statements (unaudited) "Note 4.(e) Restricted Cash, Cash Equivalents and Investments " included in this Form 10-Q for details of the fair values of restricted assets at March 31, 2024 and December 31, 2023.

At March 31, 2024 and December 31, 2023, restricted cash and cash equivalents and fixed maturity investments used as collateral were $226.8 million and $219.9 million, respectively.

This collateral represents 78.3% and 75.0% of the fair value of total fixed maturity investments, cash, restricted cash and cash equivalents at March 31, 2024 and December 31, 2023, respectively.

Cash and Investments

Historically, the investment of our funds had generally been designed to ensure safety of principal while generating current income.

Accordingly, the majority of our funds had been invested in liquid, investment-grade fixed income securities which are all designated as AFS at September 30, 2023.

As our insurance liabilities continue to run-off and the required capital to operate our business for regulatory purposes decreases, we have modified Maiden Reinsurance’s investment policy which has been approved by the Vermont DFR.

Under this modified investment policy, we have expanded the range of asset classes we invest in to enhance the income and total returns our investment portfolio produces.

Accordingly, our fixed income investment portfolio is invested in liquid, investment-grade fixed maturity securities which are all designated as AFS at March 31, 2024.

Further, as our insurance liabilities continue to run-off and the required capital to operate our business for regulatory purposes decreases, we expanded Maiden Reinsurance’s investment policy which has been approved by the Vermont DFR.

Under this modified investment policy, we expanded the range of asset classes we invest in to enhance the income and total returns our investment portfolio produces.

We categorize these investments as alternative investments which include " Other Investments ", "Equity Securities" , and "Equity Method Investments" on our Condensed Consolidated Balance Sheets.

As of September 30, 2023 and December 31, 2022, our cash and investments consisted of:

September 30, 2023 December 31, 2022

As of March 31, 2024 and December 31, 2023, our cash and investments consisted of:

March 31, 2024 December 31, 2023

($ in thousands)

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Investments " included under Part I Item 1 " Financial Information" of this Form 10-Q for further discussion on our AFS fixed income securities.

Under this revised investment policy, we have increased the amount of alternative investments held, and we expect to continue to increase the amounts invested therein.

Under this revised investment policy, we increased the amount of alternative investments held, and we expect to continue to increase the amounts invested therein.

Under our investment policy, alternative investments could include, but are not limited to, privately held investments, private equities, private credit lending funds, fixed-income funds, hedge funds, equity funds, real estate (including joint ventures and limited partnerships) and other non-fixed-income investments.

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As a result of the Exchange, there are no preference shares outstanding.

Treasury shares include 42,259,453 common shares owned by Maiden Reinsurance consisting of 41,439,348 shares issued as part of the Exchange and 820,105 shares directly purchased on the open market by Maiden Reinsurance under the Company's authorized repurchase plan.

The market value of our common shares held by Maiden Reinsurance due to the Exchange and common share repurchases was $74.4 million at September 30, 2023.

As of March 31, 2024, Maiden Reinsurance owns 30.1% of the Company's total outstanding common shares which is eliminated for accounting and financial reporting purposes on our condensed consolidated financial statements.

The voting power of Maiden Reinsurance, with respect to its common shares, is capped at 9.5% pursuant to the bye-laws of the Company.

Treasury shares include 43,231,034 common shares owned by Maiden Reinsurance consisting of 41,439,348 shares issued as part of the Exchange in 2022 and 1,791,686 common shares that were directly purchased on the open market by Maiden Reinsurance under the Company's authorized repurchase plan to date.

The market value of our common shares held by Maiden Reinsurance due to the Exchange and common share repurchases was $97.3 million at March 31, 2024.

Cash & Cash Equivalents

At September 30, 2023, we consider the levels of cash and cash equivalents held to be within our targeted ranges.

At March 31, 2024, we consider the levels of cash and cash equivalents held to be within our targeted ranges.

During periods when interest rates experience greater volatility, we have periodically maintained more cash and cash equivalents to better assess current market conditions and opportunities within our defined risk appetite, and may do so in future periods.

Fixed Maturity Investments

The average yield and average duration of our fixed maturities, by asset class, and our cash and cash equivalents (restricted and unrestricted) are as follows at September 30, 2023 and December 31, 2022, respectively:

September 30, 2023 Original or Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Average yield (1)

The average yield and average duration of our fixed maturities, by asset class, and our cash and cash equivalents (restricted and unrestricted) are as follows at March 31, 2024 and December 31, 2023:

March 31, 2024 Original or Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Average yield (1)

Average duration (2)

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29,221 — (3,603) 25,618 4.5 % 6.1

Collateralized mortgage-backed securities 6,199 — (360) 5,839 6.0 % 4.5

government bonds 42,029 6 (462) 41,573 2.7 % 0.8

13 unchanged sentences

29,918 — (3,267) 26,651 4.6 % 6.1

Collateralized mortgage-backed securities 7,199 — (432) 6,767 5.3 % 2.7

government bonds 21,219 — (468) 20,751 1.9 % 1.1

8 unchanged sentences

(2) Average duration in years.

During the nine months ended September 30, 2023, the yield on the 10-year U.S.

During the three months ended March 31, 2024, the yield on the 10-year U.S.

Treasury bond increased by 32 basis points to 4.20%.

1 unchanged sentence

Treasury rate is the key risk-free determinant in the fair value of many of the fixed maturity securities in our portfolio.

The longer end of the U.S.

Treasury yield curve shifted upward during the three months ended September 30, 2023, reflecting continuing concerns of the U.S.

Federal Reserve and financial markets about reduced but continuing elevated inflation levels and the ongoing strength of the U.S.

economy despite significant interest rate increases implemented since 2022.

Central banks globally continue to respond in similar fashion and suggest additional interest rate increases remain possible;

however, the significant majority of rate increases by central banks have largely impacted the short end of the yield curve and despite the movement in 10-year U.S.

Treasury yields during the third quarter of 2023, the U.S.

Treasury yield curve remains inverted as of September 30, 2023.

The change in the market values of our fixed maturity portfolio during the nine months ended September 30, 2023 generated net unrealized gains of $3.1 million which increased our book value per common share by $0.03 during the period.

The change in the market values of our fixed maturity portfolio during the three months ended March 31, 2024 generated net unrealized gains of $1.0 million which increased our book value per common share by $0.01 during the period.

Current outlooks for global monetary policy indicate that quantitative tightening by central banks in the U.S.

and globally are likely to moderate in the near term, although expectations remain that central banks will maintain a bias toward further tightening for the foreseeable future.

and globally appear likely to moderate in the near to intermediate term, although central banks have indicated that they maintain the option to either adopt a neutral stance or apply further tightening should data dictate such actions, particularly inflation and labor market data.

Recent data suggest moderation in global monetary policy may be slower than anticipated.

Our investment portfolios, in particular our fixed maturity portfolio, may be adversely impacted by unfavorable market conditions caused by these measures, which could cause continued volatility in our results of operations and negatively impact our financial condition.

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As noted, the fair value of our fixed maturity investments will fluctuate with changes in interest rates and credit spreads.

We attempt to maintain adequate liquidity in our fixed maturity investments portfolio with a

strategy designed to emphasize the preservation of our invested assets and provide sufficient liquidity for the prompt payment of claims and contract liabilities.

We attempt to maintain adequate liquidity in our fixed maturity investments portfolio with a strategy designed to emphasize the preservation of our invested assets and provide sufficient liquidity for the prompt payment of claims and contract liabilities.

Because we collateralize a significant portion of our insurance liabilities, unanticipated or large increases in interest rates could require us to utilize significant amounts of unrestricted cash and fixed maturity securities to provide additional collateral, which could impact our asset and capital management strategy described herein.

We also monitor the duration and structure of our investment portfolio as discussed below.

As of September 30, 2023, the aggregate hypothetical change in fair value from an immediate 100 basis points increase in interest rates, assuming credit spreads remain constant, in our fixed maturity investments portfolio would decrease the fair value of that portfolio by $6.4 million.

As of March 31, 2024, the aggregate hypothetical change in fair value from an immediate 100 basis points increase in interest rates, assuming credit spreads remain constant, in our fixed maturity investments portfolio would decrease the fair value of that portfolio by $4.9 million.

Actual shifts in interest rates may not change by the same magnitude across the maturity spectrum or on an individual security and, as a result, the impact on the fair value of our fixed maturity securities may be materially different from the resulting change in value described above.

To limit our exposure to unexpected interest rate increases which would reduce the value of our fixed income securities and reduce our shareholders' equity, we attempt to maintain the duration of our fixed maturity investment portfolio combined with our cash and cash equivalents, both restricted and unrestricted, within a reasonable range of the duration of our loss reserves.

At September 30, 2023 and December 31, 2022, these respective durations in years were as follows:

September 30, 2023 December 31, 2022

At March 31, 2024 and December 31, 2023, these respective durations in years were as follows:

March 31, 2024 December 31, 2023

Fixed maturities and cash and cash equivalents

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Reserve for loss and LAE - net of LPT/ADC Agreement reserves 1.6 1.6

During the nine months ended September 30, 2023, the weighted average duration of our fixed maturity investment portfolio slightly increased to 1.4 years while the duration for the gross reserve for loss and LAE increased to 5.8 years.

During the three months ended March 31, 2024, the weighted average duration of our fixed maturity investment portfolio decreased by 0.1 years to 1.1 years while the duration for the gross reserve for loss and LAE remained at 5.8 years.

The differential in duration between these assets and liabilities may fluctuate over time and in the case of fixed maturities, historically has been affected by factors such as market conditions, changes in asset mix and prepayment speeds in the case of both our U.S.

agency mortgage-backed securities ("Agency MBS") and commercial mortgage-backed securities.

At September 30, 2023, the duration of our loss reserves net of the LPT/ADC Agreement was in line with the duration of our fixed maturity investment portfolio.

agency mortgage-backed securities ("Agency MBS") and commercial mortgage-backed securities held.

At March 31, 2024, the duration of our loss reserves net of the LPT/ADC Agreement was higher than the duration of our fixed maturity investment portfolio.

To limit our exposure to unexpected interest rate increases that could reduce the value of our fixed maturity securities and reduce our shareholders' equity, the Company holds floating rate securities whose fair values are less sensitive to interest rates.

At September 30, 2023 and December 31, 2022, 37.8% and 29.6%, respectively, of our fixed income investments were comprised of floating rate securities which are detailed in the table below:

September 30, 2023 December 31, 2022

At March 31, 2024 and December 31, 2023, 43.2% and 40.8%, respectively, of our fixed income investments were comprised of floating rate securities which are detailed in the table below:

March 31, 2024 December 31, 2023

($ in thousands) Fair Value % of Total Fair Value % of Total

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Collateralized loan obligations $ 63,195 11.8 % $ 78,803 13.0 %

Collateralized mortgage-backed securities 3,894 0.6 % 4,773 0.5 %

Total floating rate AFS fixed maturities at fair value 63,195 11.8 % 78,803 13.0 %

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(1) Total fixed income investments at fair value include AFS fixed maturities, cash and restricted cash, funds withheld receivable, and loan to related party.

At September 30, 2023 and December 31, 2022, 100.0% of the Company’s U.S.

At March 31, 2024 and December 31, 2023, 100.0% of the Company’s U.S.

agency bond holdings are mortgage-backed.

agency MBS comprise 11.8% of our fixed maturity investment portfolio at September 30, 2023.

agency MBS comprise 9.9% of our fixed maturity investment portfolio at March 31, 2024.

Given their relative size to our total investments, if faster prepayment patterns were to occur over an extended period of time, this could potentially limit the growth in our investment income in certain circumstances or reduce the total amount of investment income we earn.

Additional details on our U.S.

Agency MBS holdings at September 30, 2023 and December 31, 2022 were as follows:

September 30, 2023 December 31, 2022

Agency MBS holdings at March 31, 2024 and December 31, 2023 were as follows:

March 31, 2024 December 31, 2023

($ in thousands) Fair Value % of Total Fair Value % of Total

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Agency MBS $ 25,618 100.0 % $ 26,651 100.0 %

At September 30, 2023 and December 31, 2022, 98.1% and 98.5%, respectively, of our fixed maturity investments consisted of investment grade securities.

At March 31, 2024 and December 31, 2023, 98.0% and 97.8%, respectively, of our fixed maturity investments consisted of investment grade securities.

We define a security as being below investment grade if it has an S&P credit rating of BB+ or equivalent, or less.

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Investments " for additional information on the credit rating of our fixed income investment portfolio.

The security holdings by sector and financial strength rating of our corporate bond holdings at September 30, 2023 and December 31, 2022 were as follows:

September 30, 2023 AAA A+, A, A- BBB+, BBB, BBB- BB+ or lower Fair Value % of Corporate bonds portfolio

The security holdings by sector and financial strength rating of our corporate bond holdings at March 31, 2024 and December 31, 2023 were as follows:

March 31, 2024 AAA A+, A, A- BBB+, BBB, BBB- BB+ or lower Fair Value % of Corporate bonds portfolio

Corporate bonds

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2.2 % 45.8 % 44.2 % 7.8 % $ 69,344 100.0 %

1.6 % 35.5 % 57.7 % 5.2 % $ 91,953 100.0 %

(1) Ratings as assigned by S&P, or equivalent

The table below includes the Company’s ten largest corporate holdings at fair value and as a percentage of all fixed income securities held as at September 30, 2023.

The table below includes the Company’s ten largest corporate holdings at fair value and as a percentage of all fixed income securities held as at March 31, 2024.

The Company's ten largest corporate holdings are 100.0% euro denominated, with 54.8% in the Consumer Sector and 29.7% in the Financial Institutions sector.

September 30, 2023 Fair Value % of Holdings Rating (1)

March 31, 2024 Fair Value % of Holdings Rating (1)

($ in thousands)

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Chubb Ina Holdings Inc., 1.55%, Due 3/15/2028 6,551 2.5 % A

Kraft Heinz Foods Co., 1.5%, Due 5/24/2024 6,077 2.4 % BBB

America Movil SAB DE CV, 1.5%, Due 3/10/2024 5,222 2.0 % A-

Molson Coors Beverage Co., 1.25%, Due 7/15/2024 5,352 2.1 % BBB

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BNP Paribas SA, 1.25%, Due 3/19/2025 3,460 1.3 % A-

Vodafone Group PLC, 1.875%, Due 9/11/2025 2,847 1.1 % BBB

McKesson Corp., 1.5% Due 11/17/2025 2,609 1.0 % A-

$ 51,589 19.9 %

(1) Ratings as assigned by S&P, or equivalent

At September 30, 2023 and December 31, 2022, respectively, 100.0% of our non-U.S.

At March 31, 2024 and December 31, 2023, respectively, 100.0% of non-U.S.

dollar denominated securities were invested in euro denominated bonds.

The net decrease in non-U.S.

denominated fixed maturities is largely due to sales and maturities of euro denominated corporate bonds during the nine months ended September 30, 2023.

At September 30, 2023 and December 31, 2022, all of the Company's non-U.S.

government issuers have a rating of AA- or higher by Fitch Ratings.

The net decrease in non-USD denominated fixed maturities is largely due to sales and maturities of euro denominated corporate bonds during the three months ended March 31, 2024.

At March 31, 2024 and December 31, 2023, the Company's non-U.S.

government issuers have a rating of A+ or higher by Fitch Ratings.

The Company does not employ any credit default protection against any of the fixed maturities held in non-U.S.

denominated currencies at September 30, 2023 and December 31, 2022, respectively.

At September 30, 2023 and December 31, 2022, respectively, we held the following non-U.S.

dollar denominated currencies at March 31, 2024 and December 31, 2023, respectively.

At March 31, 2024 and December 31, 2023, we held the following non-U.S.

dollar denominated securities:

September 30, 2023 December 31, 2022

March 31, 2024 December 31, 2023

($ in thousands) Fair Value % of Total Fair Value % of Total

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For our non-U.S.

dollar denominated corporate bonds, the following table summarizes the composition of the fair value of our fixed maturity investments at the dates indicated by ratings at September 30, 2023 and December 31, 2022:

September 30, 2023 December 31, 2022

dollar denominated corporate bonds, the following table summarizes the composition of the fair value of our fixed maturity investments at the dates indicated by ratings at March 31, 2024 and December 31, 2023:

March 31, 2024 December 31, 2023

($ in thousands) Fair Value % of Total Fair Value % of Total

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Our alternative investments are categorized as other investments, equity securities, and equity method investments as reported on our condensed consolidated balance sheets.

These include private equity funds, private credit funds and hedge fund investments, investments in limited partnerships, as well as investments in direct lending entities and investments in technology-oriented insurance related businesses known as insurtechs.

These include private equity funds, private credit funds, investments in limited partnerships, as well as investments in direct lending entities and investments in technology-oriented insurance related businesses known as insurtechs.

Private equity investments consist of direct investments in privately held entities, investments in private equity funds and private equity co-investments with sponsoring entities.

Private credit investments consist of loans and other debt securities of privately held entities or investment sponsors.

Our alternative investments as of September 30, 2023 and December 31, 2022 consisted of the following asset classes:

September 30, 2023 December 31, 2022

Our alternative investments as of March 31, 2024 and December 31, 2023 consisted of the following asset categories:

March 31, 2024 December 31, 2023

($ in thousands) Carrying Value % of Total Carrying Value % of Total

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Real estate investments $ 52,614 16.1 % $ 49,897 16.1 %

Hedge fund investments — — % 5,376 2.0 %

Other equity method investments 29,545 9.0 % 31,032 10.1 %

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Total alternative investments $ 326,975 100.0 % $ 309,039 100.0 %

Our allocation to alternative investments increased to 50.3% of our total cash and investments as of September 30, 2023 compared to 43.0% as of December 31, 2022;

and increased to 110.6% of our total shareholders' equity as of September 30, 2023 compared to 95.8% as of December 31, 2022.

Our allocation to alternative investments increased to 53.0% of our total cash and investments as of March 31, 2024 compared to 51.3% as of December 31, 2023;

and increased to 131.1% of our total shareholders' equity as of March 31, 2024 compared to 124.0% as of December 31, 2023.

In addition to the categories described above, we also evaluate our alternative investments by the following asset classes:

September 30, 2023 December 31, 2022

March 31, 2024 December 31, 2023

($ in thousands) Carrying Value % of Total Carrying Value % of Total

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Private Credit 55,233 16.9 % 53,673 17.4 %

Hedge Funds — — % 5,376 2.0 %

Alternatives 98,674 30.2 % 95,258 30.8 %

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"Financial Information" of this Report on Form 10-Q.

Within these asset classes, our portfolio broadly consists of the following types of investments:

• Private Equity – this asset class consists of both fund investments with leading private equity sponsors and direct equity investments in private companies, sometimes in conjunction with our private equity fund sponsors.

As of March 31, 2024, $24.3 million or 26.4% of investments in the private equity asset class consisted of investments in private equity funds and $67.8 million or 73.6% consisted of direct equity investments in private companies.

• Private Credit - this asset class consists of both fund investments with leading private credit sponsors and direct credit investments in private companies, sometimes in conjunction with our private credit fund sponsors.

Private credit investments in both funds and on a direct basis will typically be secured lending arrangements with non-rated entities, often with additional protective provisions to enhance the security and returns of these investments.

As of March 31, 2024, $51.5 million or 93.3% of investments in the private credit asset class consisted of investments in private credit funds and $3.7 million or 6.7% consisted of direct investments in debt securities of private companies.

• Alternatives – this asset class consists of structured financing arrangements which typically have incentive features to enhance the Company’s returns.

As part of these arrangements, the Company requires collateral or bankruptcy-remote structures to protect its investments.

As of March 31, 2024, $97.2 million or 98.5% of investments in the alternatives asset class were direct investments and $1.5 million or 1.5% of the alternatives asset class were invested in funds.

One investment in a collateralized direct lending entity of $72.6 million represents 73.6% of this asset class and is discussed further in "Note 4 — Investments" included in Part I Item 1.

"Financial Information" in this Quarterly Report on Form 10-Q for the three months ended March 31, 2024.

• Venture Capital – this asset class consists of both fund investments with venture capital firms focused primarily on “insurtech” or “fintech” early-stage investments as well as direct investments in start-up companies in this sector, including equity investments in individual companies made in conjunction with our venture capital fund sponsors.

As of March 31, 2024, $8.3 million or 36.9% of investments in the venture capital asset class consisted of investments in funds and $14.2 million or 63.1% consisted of direct equity investments in start-up companies.

As of March 31, 2024, $13.2 million or 58.7% of our venture capital investments were invested in funds or companies that would be considered “insurtech” investments.

• Real Estate – this asset class consists of long-term equity investments in three real estate projects.

Two are multi-family residential development projects near major urban centers where workforce housing demand continues to be strong.

One investment is a minority stake as a limited partner with a leading property developer with a highly successful track record, where the Company will earn returns from both operating income from rentals and future sales of properties.

As of March 31, 2024, the Company has $24.0 million invested in this project and expects investment returns to commence in earnest in 2026 and beyond.

The second multi-family residential investment is a majority stake with general partner rights wherein the Company is providing the capital backing to an experience and successful developer in the subject market, while also taking minority equity stakes in individual projects.

To date, this development project has secured five properties in attractive locations and is currently in the zoning and planning stages.

As of March 31, 2024, the Company has $28.6 million invested in this project and has commenced earning limited amounts of fee income from this project.

As part of its investment, the Company has also provided certain loan guarantees which are discussed in more detail in Note 11 — Commitments, Contingencies and Guarantees included in Part I Item 1.

"Financial Information" .

We expect fee and operating income and gains from future sales of properties to commence in earnest in 2027 and beyond.

Finally, the Company has a minority equity stake in an iconic office building in a major city in the U.S., with an attractive and growing tenant roll.

As of March 31, 2024, the Company has $5.8 million invested in this project and to date has earned preferred returns and received certain distributions.

In addition to preferred returns, the Company expects to receive future distributions of operating income from this investment.

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

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Investment Results

The following table summarizes our investment results 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,

Our investment portfolio produced significantly higher returns included in earnings of $17.1 million during the three months ended March 31, 2024 compared to $10.5 million during the same period in 2023.

Our investment returns increased 62.5% through a combination of higher yields on certain fixed income assets along with strengthening returns on our alternative investment portfolio, which increased by 5.8% during 2024 and produced a positive net return of 3.4% during 2024 compared to 0.7% in 2023.

The following table summarizes our investment results for the three months ended March 31, 2024 and 2023:

For the Three Months Ended March 31,

($ in thousands) 2024 2023

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Fixed income assets (1)

(301) 96 (1,087) 1,192

Other investments, including equities — 176

Total net realized (losses) gains (218) 176

Net unrealized gains (losses):

Net unrealized gains:

Other investments, including equities 8,968 829

Total net unrealized gains (losses) 545 (1,779) 3,295 1,466

Total net unrealized gains 8,968 829

Interest in income (loss) of equity method investments:

3 unchanged sentences

$ 17,056 $ 10,499

Other comprehensive income (loss):

Unrealized gains (losses) on AFS fixed maturities and equity method investments excluding foreign exchange (B)

Other comprehensive income:

Unrealized gains on AFS fixed maturity securities and equity method investments excluding foreign exchange (B)

$ 1,018 $ 1,936

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Fixed income investments include AFS securities as well as funds withheld receivable, and loan to related party.

Average aggregate fixed income assets and cash include AFS portfolio, cash and restricted cash, funds withheld receivable, and loan to related party and is computed as an average of the amounts disclosed in our quarterly U.S.

Average aggregate fixed income assets include AFS portfolio, cash and restricted cash, funds withheld receivable, and loan to related party and is computed as an average of the amounts disclosed in our quarterly U.S.

GAAP consolidated financial statements.

1 unchanged sentence

GAAP consolidated financial statements.

The following table details total investment returns for our fixed income investments for the three and nine months ended September 30, 2023 and 2022, respectively:

The following table details total investment returns for our fixed income investments for the three months ended March 31, 2024 and 2023:

Fixed Income Investments (1)

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

For the Three Months Ended March 31,

($ in thousands) 2024 2023

Gross investment income $ 6,585 $ 8,757

Net realized and unrealized (losses) gains (301) 96 (1,087) 1,192

Net realized losses

Change in AOCI (3)

335 (8,613) 3,118 (36,693)

Gross investment returns $ 7,385 $ 10,693

5 unchanged sentences

Net Investment Returns 1.3 % 1.1 %

The following table details total investment returns for our alternative investments for the three and nine months ended September 30, 2023 and 2022, respectively:

Our average book yields increased to 1.3% for the three months ended March 31, 2024 compared to 1.1% in the same period in 2023 largely due to floating rate investments that comprised 43.2% of our fixed income investments at March 31, 2024 which enabled the portfolio to respond to the higher interest rate environment more quickly.

The loan to related party carried a higher weighted average interest rate on a balance of $168.0 million which increased to 7.3% during the three months ended March 31, 2024 compared to 6.4% for the same period in 2023;

which was partly offset by lower interest income on the funds withheld receivable from AmTrust which decreased due to a much lower average ending balance of $94.7 million during the three months ended March 31, 2024.

Please refer to " Notes to Condensed Consolidated Financial Statements - Note 4 — Investments " included under Part I, Item 1 " Financial Information" of this Quarterly Report on Form 10-Q for further detail on investment returns from fixed income investments held by the Company at March 31, 2024 and 2023.

The following table details total investment returns for our alternative investments for the three months ended March 31, 2024 and 2023, respectively:

Alternative Investments (2)

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

For the Three Months Ended March 31,

($ in thousands) 2024 2023

Gross investment income $ 1,813 $ 836

Net realized and unrealized gains (losses) 545 (1,668) 3,481 1,656

Change in AOCI (3)

Net realized and unrealized gains

Gross investment returns $ 10,781 $ 1,841

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GAAP consolidated financial statements.

The following table details total investment returns for alternative investments by asset class for the nine months ended September 30, 2023:

September 30, 2023 Private Equity Private Credit Hedge Funds Alternative Assets Venture Capital Real Estate Total

The following table details total investment returns for alternative investments by asset class for the three months ended March 31, 2024:

March 31, 2024 Private Equity Private Credit Alternative Assets Venture Capital Real Estate Total

($ in thousands)

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Annualized Gross Returns 31.0 % 17.1 % 5.9 % 12.4 % (2.9) % 13.6 %

Total investment returns on alternative investments were positive across all asset classes other than real estate and earned a weighted average return of 5.0% during the nine months ended September 30, 2023.

The gross and net investment returns were higher compared to the same respective periods in 2022 largely due to the interest in income of an equity method investment of $5.5 million, primarily in the alternative asset category, that was recognized during the nine months ended September 30, 2023.

The following table details total investment returns for alternative investments by asset class for the nine months ended September 30, 2022:

September 30, 2022 Private Equity Private Credit Hedge Funds Alternative Assets Venture Capital Real Estate Total

The following table details total investment returns for alternative investments by asset class for the three months ended March 31, 2023:

March 31, 2023 Private Equity Private Credit Hedge Funds Alternative Assets Venture Capital Real Estate Total

($ in thousands)

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Net realized and unrealized gains (losses) 665 (462) — — 1,083 (281) 1,005

Change in AOCI — — — 4,414 — — 4,414

Total Investment Return $ 774 $ 316 $ 167 $ — $ 1,083 $ (499) $ 1,841

2 unchanged sentences

Annualized Gross Returns 5.0 % 2.6 % 22.7 % — % 19.5 % (4.2) % 2.7 %

Total returns on alternative investments were positive and earned 2.5% during the nine months ended September 30, 2022 partly due to the sale of an equity method investment in the alternative asset category which produced gross returns of $5.8 million and contributed 2.4% to the gross investment returns during the prior year period.

While our alternative investment portfolio continues to be impacted by a rapidly rising interest rate and subsequent economic and financial markets uncertainty, particularly as regards to timing of monetizing certain investments, we believe our alternative investment portfolio remains well positioned to achieve its targeted longer-term returns.

During the three months ended March 31, 2024, our annualized gross and net investment returns exceeded our cost of debt capital, and on an inception to date basis through March 31, 2024, alternative investments have now produced an internal rate of return of 5.9% and a multiple on invested capital of 1.12.

This includes investments, primarily in the Alternatives and Real Estate asset classes where we anticipate future returns to emerge but have not as yet recognized either returns or gains based on the development stage of certain investments, which constitute 38.3% of our total alternative assets as of March 31, 2024.

Excluding the investments still carried at cost, the internal rate of return was 10.4% with a multiple on invested capital of 1.21.

Total returns on alternative investments by asset class are discussed below in detail for the three months ended March 31, 2024:

• Private Equity – investment returns in this asset class reflect both dividends and distributions received as well as unrealized gains or losses from adjustments to net asset values in the case of fund investments and market value adjustments in the case of direct equity investments.

During the three months ended March 31, 2024, private equity investments produced a total investment return of $6.8 million with fund investments earning $0.5 million while direct investments produced a total investment return of $6.3 million.

Inception to date, private equity investments have produced an internal rate of return of 11.0% and a multiple on invested capital of 1.30, with fund investments producing an internal rate of return of 11.8% and a multiple on invested capital of 1.29, while direct investments have produced an internal rate of return of 10.4% and a multiple on invested capital of 1.31.

No realized gains on private equity investments have been recognized through March 31, 2024.

• Private Credit – investment returns in this asset class reflect both distributions received as well as unrealized gains or losses from adjustments to net asset values in the case of fund investments and market value adjustments in the case of direct equity investments.

During the three months ended March 31, 2024, private credit investments produced a total investment return of $2.3 million with fund investments earning $2.2 million while direct investments produced a total investment return of $0.1 million.

Inception to date, private credit investments have produced an internal rate of return of 7.1% and a multiple on invested capital of 1.12, with fund investments producing an internal rate of return of 6.9% and a multiple on invested capital of 1.12, while direct investments have produced an internal rate of return of 10.9% and a multiple on invested capital of 1.11.

• Alternative Assets – investment returns in this asset class largely relate to equity method recognition of income from structured financing arrangements in real assets which utilize bankruptcy-remote structures to protect these investments.

During the three months ended March 31, 2024, alternative investments produced a total investment return of $1.4 million.

Inception to date, alternative direct investments on real assets have produced an internal rate of return of 38.3% and a multiple on invested capital of 1.41;

in total, alternative fund investments have produced an

internal rate of return of (9.1%) and a multiple on invested capital of 0.93.

We have not recognized any returns (including contractual preferred returns) on other alternative investments as the underlying collateralized investment supporting this direct lending initiative continues to develop;

these investments represent 73.6% of the alternative investment class at March 31, 2024.

We expect to recognize our preferred returns and contingency gains as these investment develops further or if other collateral we have secured as part of our investment responds sooner, subject to certain conditions.

• Venture Capital – investment returns in this asset class primarily reflect unrealized gains or losses from adjustments to net asset values in the case of fund investments and market value adjustments in the case of direct equity investments.

During the three months ended March 31, 2024, our venture capital investments produced a total return of $0.7 million entirely from our fund investments.

Inception to date, venture capital investments have produced an internal rate of return of 8.9% and a multiple on invested capital of 1.21;

venture capital fund investments have produced an internal rate of return of (11.7%) and a multiple on invested capital of 0.82, while direct venture capital investments have produced an internal rate of return of 14.1% and a multiple on invested capital of 1.45.

Through March 31, 2024, we realized total gains of $4.8 million on the sale of the Company’s stake in Betterview Marketplace, Inc.

("Betterview") in a cash and stock transaction with Nearmap US, Inc.

We now continue to hold shares in Nearmap after completion of this transaction.

To date our investment in Betterview has produced an internal rate of return of 27.9% and a multiple on invested capital of 1.74.

• Real Estate – investment returns in this asset class include preferred returns and distributions (if any) from plan developers along with limited unrealized gains or losses to date as two of the projects remain in the development phase.

As noted earlier, the Company does not expect significant investment returns from these attractive projects for the next several years.

To date these investments have produced an internal rate of return of (2.4%) and a multiple on invested capital of 0.96.

As our returns in alternative investments continues to increase, we believe our alternative investment portfolio remains well positioned to achieve its targeted longer-term returns.

Other Balance Sheet Changes

The following table summarizes our other material balance sheet changes at September 30, 2023 and December 31, 2022:

($ in thousands) September 30, 2023 December 31, 2022 Change in $ Change %

The following table summarizes our other material balance sheet changes at March 31, 2024 and December 31, 2023:

($ in thousands) March 31, 2024 December 31, 2023 Change in $ Change %

Deferred commission and other acquisition expenses

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The Company's deferred commission and other acquisition expenses decreased by 9.0% and unearned premiums decreased by 9.0% primarily due to the termination of the remaining business under both quota share contracts with AmTrust which have been in run-off since January 1, 2019.

Funds withheld receivable decreased by 48.0% due to settlement of reinsurance losses payable under the AmTrust Quota Share.

Accrued expenses and other liabilities decreased by 36.1% primarily due to settlement of reinsurance losses payable due to AmTrust, and a decrease in the underwriting-related derivative liability on GLS policies to $4.0 million at September 30, 2023 compared to $14.6 million at December 31, 2022 as the acceleration of covered payments triggered coverage in excess of the contracts risk margin.

Funds withheld receivable decreased by 46.5% primarily due to settlement of reinsurance losses payable under the AmTrust Quota Share and $15.3 million of excess collateral released by AmTrust during the three months ended March 31, 2024.

Accrued expenses and other liabilities increased by 8.9% primarily due to an increase in reinsurance losses payable due to AmTrust.

The Company's reserve for loss and LAE decreased by 6.2% primarily due to continued settlement of loss reserves for AmTrust Reinsurance contracts.

The deferred gain on retroactive reinsurance increased by $11.1 million or 23.3% compared to December 31, 2022 driven by net adverse prior year loss development of $12.0 million for the nine months ended September 30, 2023 reported for the AmTrust Reinsurance segment as these losses are largely covered by the LPT/ADC Agreement with Cavello.

The deferred gain on retroactive reinsurance increased by $5.0 million or 6.8% compared to December 31, 2023 driven by net adverse reserve development of $5.0 million reported for policies under the AmTrust Quota Share as these losses are largely covered by the LPT/ADC Agreement with Cavello.

Capital Resources

During the nine months ended September 30, 2023, book value per common share decreased by 7.1% to $2.60 and diluted book value per common share decreased by 7.5% to $2.58, compared to December 31, 2022.

This was largely due to the net loss attributable to Maiden common shareholders of $17.8 million during the nine months ended September 30, 2023 and an opening allowance for expected credit losses of $5.5 million in the beginning retained earnings on January 1, 2023;

partly offset by a net increase in AOCI of $2.3 million during the period.

During the three months ended March 31, 2024, book value per common share remained stable at $2.48 and diluted book value per common share decreased by 1.2% to $2.43, compared to December 31, 2023.

This was largely due to a higher number of dilutive restricted shares outstanding with minimal growth in capital resources which increased by $0.2 million for the three months ended March 31, 2024.

Capital resources consist of funds deployed in support of our operations.

The following table shows the movement in our capital resources at September 30, 2023 and December 31, 2022:

September 30, 2023 December 31, 2022 Change in $ Change (%)

The following table shows the movement in our capital resources at March 31, 2024 and December 31, 2023:

March 31, 2024 December 31, 2023 Change in $ Change (%)

($ in thousands)

10 unchanged sentences

$ 511,721 $ 511,521 $ 200 — %

Total capital resources decreased by $21.5 million, or 3.9% compared to December 31, 2022 due to the following items:

• net increase in additional paid-in capital of $1.5 million mainly due to share-based compensation of $1.4 million;

• net increase in AOCI of $2.3 million which arose due to:

(1) net unrealized gains on investment of $3.1 million mainly from our fixed income investment portfolio relating to market price movements in the nine months ended September 30, 2023, and (2) an decrease in cumulative translation adjustments of $0.7 million in the nine months ended September 30, 2023 due to the impact of the U.S.

dollar depreciation on the re-measurement of net assets denominated in British pound and euro;

• accumulated deficit increased by $23.3 million due to a net loss of $17.8 million for the nine months ended September 30, 2023 and the opening allowance for expected credit losses on other investments, reinsurance recoverable, reinsurance balances receivable and funds withheld receivable of $5.5 million for the nine months ended September 30, 2023 which decreased opening retained earnings;

• treasury shares increased by $1.9 million due to common shares repurchased under the Company's authorized common share repurchase plan as well as repurchases for tax withholding in respect of tax obligations on the vesting of both non-performance-based and discretionary performance-based restricted shares.

Total capital resources increased by $0.2 million compared to December 31, 2023 due to the following items:

• net increase in additional paid-in capital of $0.4 million due to share-based compensation of $0.4 million;

• net decrease in AOCI of $0.7 million which arose due to:

(1) net unrealized gains on investment of $1.0 million mainly from our AFS bond portfolio relating to market price movements in the three months ended March 31, 2024, offset by (2) a decrease in cumulative translation adjustments of $1.7 million in the three months ended March 31, 2024 due to the impact of the U.S.

dollar appreciation on the re-measurement of net assets denominated in British pound and euro;

• accumulated deficit decreased by $1.5 million due to net income of $1.5 million for the three months ended March 31, 2024;

• treasury shares increased by $0.9 million due to common shares repurchased under the Company's authorized common share repurchase plan as well as repurchases for tax withholding in respect of tax obligations on the vesting of non-performance-based restricted shares.

Please refer to " Notes to Consolidated Financial Statements Note 6.

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" Financial Statements and Supplementary Data" of our Annual Report on Form 10-K for a discussion of the equity instruments issued by the Company as at December 31, 2023.

Book value and diluted book value per common share at September 30, 2023 and December 31, 2022 were as follows:

($ in thousands except share and per share data) September 30, 2023 December 31, 2022

Book value and diluted book value per common share at March 31, 2024 and December 31, 2023 were as follows:

($ in thousands except share and per share data) March 31, 2024 December 31, 2023

Ending common shareholders’ equity

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On February 21, 2017, the Company's Board of Directors approved the repurchase of up to $100.0 million of the Company's common shares from time to time at market prices.

During the three and nine months ended September 30, 2023, Maiden Reinsurance repurchased 520,475 and 820,105 common shares, respectively, from the open market at an average price per share of $1.86 and $1.93, respectively, under the Company's share repurchase plan.

The Company's remaining authorization is $72.7 million for common share repurchases at September 30, 2023.

No repurchases were made during the three and nine months ended September 30, 2022 under the common share repurchase plan.

There were no changes in the Company’s Senior Notes at September 30, 2023 compared to December 31, 2022 other than repurchases as discussed further below.

The Company did not enter into any short-term borrowing arrangements during the nine months ended September 30, 2023.

During the three months ended March 31, 2024, Maiden Reinsurance repurchased 352,111 common shares from the open market at an average price per share of $1.91 under the Company's share repurchase plan.

The Company's remaining authorization is $70.9 million for common share repurchases at March 31, 2024.

No repurchases were made during the three months ended March 31, 2023 under the common share repurchase plan.

There were no changes in the Company’s Senior Notes at March 31, 2024 compared to December 31, 2023.

The Company did not enter into any short-term borrowing arrangements during the three months ended March 31, 2024.

Please refer to " Notes to Condensed Consolidated Financial Statements (unaudited) Note 7.

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Long-Term Debt " included under Part I Item 1 " Financial Information" of this Form 10-Q, 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 $100.0 million 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 nine months ended September 30, 2023, Maiden Reinsurance repurchased 5,567 notes of the 2013 Senior Notes at an average price per unit of $17.10 for a total cost of $95.2 thousand.

Total interest and amortization expenses for the nine months ended September 30, 2023 were partly offset by a gain of $39.9 thousand realized on the repurchase of the 2013 Senior Notes.

The Company has a remaining authorization of $99.9 million for such repurchases at September 30, 2023.

The Company has a remaining authorization of $99.9 million for such repurchases at March 31, 2024.

Maiden Holdings does not have any significant operations or assets other than ownership of the shares of our subsidiaries.

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In 2023 and 2024, the Vermont DFR approved an annual dividend program from Maiden Reinsurance to Maiden NA, with notification to the Vermont DFR as dividends are paid.

Subsequent to those approvals, Maiden Reinsurance paid total dividends of $37.5 million to Maiden NA as of September 30, 2023.

Subsequent to those approvals, Maiden Reinsurance paid total dividends of $50.0 million to Maiden NA as of March 31, 2024.

The summarized financial information below has been presented on a combined basis for the issuer Maiden NA and the guarantor Maiden Holdings, excluding all other subsidiaries.

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The net loss for Maiden NA and Maiden Holdings was due to interest and amortization expenses on the Senior Notes as well as general and administrative expenses.

The net loss in Maiden NA also reflects income tax expense incurred for the respective periods.

Summarized financial information of Maiden NA and Maiden Holdings as of September 30, 2023 and for the three and nine months ended September 30, 2023 were as follows:

The net loss in Maiden NA also reflects income tax expense incurred for the respective period.

Summarized financial information of Maiden NA and Maiden Holdings as of March 31, 2024 and for the three months ended March 31, 2024 were as follows:

Maiden NA Maiden Holdings

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Related party loan payable (not included in total liabilities above) — 295,379

Total revenue for the quarter-to-date period 1,230 3

Net loss for the quarter-to-date period (3,181) (8,253)

Total revenue for year-to-date period (1,049) 4

Net loss for year-to-date period

The ratio of Debt to Total Capital Resources at September 30, 2023 and December 31, 2022 was computed as follows:

($ in thousands) September 30, 2023 December 31, 2022

(4,089) (9,239)

The ratio of Debt to Total Capital Resources at March 31, 2024 and December 31, 2023 was computed as follows:

($ in thousands) March 31, 2024 December 31, 2023

Senior notes - principal amount

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

As discussed above, at September 30, 2023, guarantees of $55.1 million have been provided to lenders by the Company on behalf of the real estate joint venture, however, the likelihood of the Company incurring any losses pertaining to project level financing guarantees was determined to be remote.

As discussed above, at March 31, 2024, guarantees of $69.7 million have been provided to lenders by the Company on behalf of the real estate joint venture, however, the likelihood of the Company incurring any losses pertaining to project level financing guarantees was determined to be remote.

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

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The calculation, reconciliation to nearest GAAP measure and discussion of relevant non-GAAP measures used by management are as follows:

Non-GAAP operating loss and Non-GAAP diluted operating loss per share available to common shareholders

Non-GAAP operating loss and Non-GAAP diluted operating loss per share attributable to common shareholders

Non-GAAP operating loss and Non-GAAP diluted operating loss per share attributable to common shareholders can be reconciled to the nearest U.S.

GAAP financial measure as follows:

For the Three Months Ended September 30, 2023 2022

($ in thousands except per share data)

Net loss attributable to Maiden common shareholders $ (3,527) $ (8,160)

Add (subtract):

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

Foreign exchange and other gains (4,594) (8,586)

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

Change in deferred gain on retroactive reinsurance under the LPT/ADC Agreement (1,192) (6,259)

Non-GAAP operating loss $ (11,747) $ (21,060)

Diluted loss per share attributable to common shareholders $ (0.03) $ (0.09)

Add (subtract):

Net realized and unrealized investment (gains) losses (0.01) 0.02

Foreign exchange and other gains (0.05) (0.10)

Interest in (income) loss of equity method investments (0.02) —

Change in deferred gain on retroactive reinsurance under the LPT/ADC Agreement (0.01) (0.07)

Non-GAAP diluted operating loss per share attributable to common shareholders

$ (0.12) $ (0.24)

For the Nine Months Ended September 30, 2023 2022

For the Three Months Ended March 31, 2024 2023

($ in thousands except per share data)

Net (loss) income (attributable) available to Maiden common shareholders $ (17,788) $ 19,186

Net income (loss) $ 1,459 $ (11,328)

Add (subtract):

Net realized and unrealized investment gains

Foreign exchange and other losses (gains) 843 (19,121)

(8,750) (1,005)

Foreign exchange and other (gains) losses

(2,053) 2,816

Interest in (income) loss of equity method investments

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Non-GAAP operating loss

Diluted (loss) earnings per share (attributable) available to common shareholders $ (0.18) $ 0.22

$ (4,950) $ (7,893)

Diluted earnings (loss) per share available (attributable) to common shareholders

$ 0.01 $ (0.11)

Add (subtract):

Net realized and unrealized investment gains (0.08) (0.01)

Foreign exchange and other losses (gains) 0.01 (0.22)

Foreign exchange and other (gains) losses (0.02) 0.03

Interest in (income) loss of equity method investments (0.01) —

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$ (0.05) $ (0.08)

Non-GAAP operating loss was $11.7 million for the three months ended September 30, 2023 compared to non-GAAP operating loss of $21.1 million for the same period in 2022.

Non-GAAP operating loss was $15.2 million for the nine months ended September 30, 2023, compared to a non-GAAP operating loss of $11.4 million for the same respective period in 2022 which included gains of $28.2 million from the repurchase of our preference shares in 2022.

Non-GAAP operating loss was $5.0 million for the three months ended March 31, 2024 compared to non-GAAP operating loss of $7.9 million for the same period in 2023.

The non-GAAP operating results were primarily driven by non-GAAP underwriting results in the AmTrust Reinsurance segment as discussed further below.

Non-GAAP Underwriting Results

The non-GAAP underwriting results for the three and nine months ended September 30, 2023 and 2022 are as follows:

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

The non-GAAP underwriting results for the three months ended March 31, 2024 and 2023 are as follows:

For the Three Months Ended March 31,

($ in thousands) 2024 2023

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Net premiums earned $ 12,408 $ 9,002

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

Other insurance revenue (expense), net 46 (59)

Non-GAAP net loss and LAE (1)

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$ (2,524) $ (6,680)

(1) Non-GAAP underwriting loss and non-GAAP net loss and LAE for the three and nine months ended September 30, 2023 and 2022 are adjusted for prior year reserve development subject to the LPT/ADC Agreement.

(1) Non-GAAP underwriting loss and non-GAAP net loss and LAE for the three months ended March 31, 2024 and 2023 are adjusted for prior year reserve development subject to the LPT/ADC Agreement.

Please see "Key Financial Measures" section for the definitions of Non-GAAP underwriting loss and net loss and LAE.

The non-GAAP underwriting results above are summarized by segment for the three and nine months ended September 30, 2023 and 2022 in the table below:

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

The non-GAAP underwriting results above are summarized by segment for the three months ended March 31, 2024 and 2023 in the table below:

For the Three Months Ended March 31,

($ in thousands) 2024 2023

Diversified Reinsurance underwriting (loss) income $ (2,541) $ 40 $ (7,648) $ 264

Diversified Reinsurance underwriting loss $ (272) $ (1,989)

AmTrust Reinsurance underwriting loss (7,252) (6,264)

(favorable) adverse prior year loss development covered under the LPT/ADC Agreement (1,192) (6,259) 11,108 (10,722)

adverse prior year loss development covered under the LPT/ADC Agreement 5,000 1,573

Non-GAAP AmTrust Reinsurance underwriting loss (2,252) (4,691)

Non-GAAP underwriting loss $ (2,524) $ (6,680)

The non-GAAP underwriting results include the impact of prior year loss reserve development under the AmTrust Quota Share which is fully recoverable from Cavello under the LPT/ADC Agreement to show the ultimate economic benefit to the Company.

As shown in the table above, adjusted for the decrease in the deferred gain under the LPT/ADC Agreement of $1.2 million and increase of $11.1 million during the three and nine months ended September 30, 2023, respectively, the non-GAAP underwriting loss was $12.1 million and $17.3 million, respectively.

This compared to a non-GAAP underwriting loss of $18.9 million and $30.1 million, respectively, when adjusted for the decrease of $6.3 million and $10.7 million in the deferred gain under the LPT/ADC Agreement during the three and nine months ended September 30, 2022, respectively.

The non-GAAP underwriting results above were due to incurred losses in the AmTrust Reinsurance segment not covered by the LPT/ADC Agreement, specifically the run-off of the AmTrust Quota Share for losses occurring after December 31, 2018, and net adverse loss development in the European Hospital Liability Quota Share.

Please refer to the AmTrust Reinsurance segment results under Item 2.

"Management's Discussion and Analysis of Financial Condition and Results of Operations" of this Quarterly Report on Form 10-Q for further discussion of these underwriting results.

The non-GAAP underwriting results in the table above were also driven by the Diversified Reinsurance segment which had an underwriting loss of $2.5 million and $7.6 million for the three and nine months ended September 30, 2023, respectively, compared to income of $40.0 thousand and $0.3 million for the same respective periods in 2022.

Please refer to the Diversified Reinsurance segment results under Item 2.

"Management's Discussion and Analysis of Financial Condition and Results of Operations" of this Quarterly Report on Form 10-Q for further discussion of these underwriting results.

The non-GAAP underwriting results have been adjusted for prior year loss reserve development under the AmTrust Quota Share which is fully recoverable from Cavello under the LPT/ADC Agreement to show the ultimate economic benefit to the Company.

As shown in the table above, adjusted for the increase in the deferred gain under the LPT/ADC Agreement of $5.0 million during the three months ended March 31, 2024, the non-GAAP underwriting loss was $2.5 million.

This compared to a non-GAAP underwriting loss of $6.7 million when adjusted for the increase in the deferred gain under the LPT/ADC Agreement of $1.6 million during the three months ended March 31, 2023.

The non-GAAP underwriting loss of $2.5 million for the three months ended March 31, 2024 was primarily driven by:

• underwriting results in the AmTrust Reinsurance segment not covered by the LPT/ADC Agreement, specifically the run-off of the AmTrust Quota Share with losses occurring after December 31, 2018;

• adverse loss development of $2.5 million in the European Hospital Liability Quota Share, which is not covered by the LPT/ADC Agreement;

• underwriting loss of $0.3 million in the Diversified Reinsurance segment for the three months ended March 31, 2024.

Please refer to the respective segment results for AmTrust Reinsurance and Diversified Reinsurance under Item 2.

"Management's Discussion and Analysis of Financial Condition and Results of Operations" of this Quarterly Report on Form 10-Q for further details of these underwriting results.

Non-GAAP Net Loss and LAE

Adjusted for the decrease and increase in the deferred gain for the LPT/ADC Agreement for the three and nine months ended September 30, 2023, respectively, the non-GAAP net loss and LAE increased by $1.2 million and decreased by $11.1 million, respectively, as these amounts included adverse loss experience for AmTrust Quota Share reserves under the LPT/ADC Agreement which are ultimately recoverable from Cavello.

Adjusted for the decrease in the deferred gain for the LPT/ADC Agreement for the three and nine months ended September 30, 2022, the non-GAAP net loss and LAE increased by $6.3 million and $10.7 million, respectively, as these amounts included favorable loss experience for AmTrust Quota Share reserves under the LPT/ADC Agreement which are ultimately recoverable from Cavello.

Adjusted for prior year reserve development under the AmTrust Quota Share which is fully recoverable from Cavello under the LPT/ADC Agreement, the non-GAAP net loss and LAE decreased by $5.0 million for the three months ended March 31, 2024.

Adjusted for prior year reserve development under the AmTrust Quota Share which is fully recoverable from Cavello under the LPT/ADC Agreement, the non-GAAP net loss and LAE decreased by $1.6 million for the three months ended March 31, 2023.

These adjustments are reflected in the calculation of non-GAAP Loss and LAE below:

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

For the Three Months Ended March 31,

($ in thousands) 2024 2023

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$ 11,625 $ 9,815

(favorable) adverse prior year loss development covered under the LPT/ADC Agreement (1,192) (6,259) 11,108 (10,722)

adverse prior year loss development covered under the LPT/ADC Agreement 5,000 1,573

Non-GAAP net loss and LAE

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Adjusted Shareholders' Equity, Adjusted Total Capital Resources, Adjusted Book Value per Common Share, and Ratio of Debt to Total Adjusted Capital Resources

The Adjusted Shareholders' Equity, Adjusted Total Capital Resources and Adjusted Book Value per Common Share at September 30, 2023 and December 31, 2022 reflect the addition of the unamortized deferred gain under the LPT/ADC Agreement to the GAAP shareholders' equity as depicted in the computations below.

The deferred gain under the LPT/ADC Agreement was $56.5 million at September 30, 2023 compared to $45.4 million at December 31, 2022, which relates to loss reserves subject to that agreement that are fully recoverable from Cavello.

The increase in the unamortized deferred gain under the LPT/ADC Agreement for the nine months ended September 30, 2023 is attributable to $11.1 million in net loss and LAE recognized as adverse loss development in the Company's GAAP income statement for policies subject to the LPT/ADC Agreement.

The Adjusted Shareholders' Equity, Adjusted Total Capital Resources and Adjusted Book Value per Common Share at March 31, 2024 and December 31, 2023 reflect the addition of the unamortized deferred gain under the LPT/ADC Agreement to the GAAP shareholders' equity as depicted in the computations below.

The deferred gain under the LPT/ADC Agreement was $75.9 million at March 31, 2024 compared to $70.9 million at December 31, 2023;

this increase is attributable to $5.0 million in net loss and LAE recognized as adverse reserve development in the Company's GAAP income statement for AmTrust Quota Share policies covered by the LPT/ADC Agreement.

Net adverse development of $5.0 million was reported for policies under the AmTrust Quota Share for the three months ended March 31, 2024.

These losses are recoverable under the LPT/ADC Agreement and are expected to be recognized as future GAAP income over time as recoveries are received subject to the provisions of both the LPT/ADC Agreement and the applicable GAAP accounting rules.

We believe the inclusion of this unamortized deferred gain under these metrics better reflects the ultimate economic benefit of the LPT/ADC Agreement, which will improve the Company's shareholders' equity over the settlement period under the terms of the agreement.

Reconciliation of shareholders' equity to Adjusted shareholders' equity and Adjusted Total Capital Resources

The following table computes adjusted shareholders' equity and adjusted total capital resources by recognizing the unamortized deferred gain under the LPT/ADC Agreement at September 30, 2023 and December 31, 2022:

($ in thousands) September 30, 2023 December 31, 2022 Change in $ Change %

The following table computes adjusted shareholders' equity and adjusted total capital resources by recognizing the unamortized deferred gain under the LPT/ADC Agreement at March 31, 2024 and December 31, 2023:

($ in thousands) March 31, 2024 December 31, 2023 Change in $ Change %

Total shareholders' equity

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Non-GAAP Operating ROACE

Non-GAAP Operating ROACE for the three and nine months ended September 30, 2023 and 2022 was as follows:

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

Non-GAAP Operating ROACE for the three months ended March 31, 2024 and 2023 was as follows:

For the Three Months Ended March 31,

($ in thousands) 2024 2023

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Reconciliation of Book Value per Common Share to Adjusted Book Value per Common Share

The adjusted book value per common share as reconciled for the recognition of the unamortized deferred gain under the LPT/ADC Agreement at September 30, 2023 and December 31, 2022 was computed as follows:

September 30, 2023 December 31, 2022

The adjusted book value per common share as reconciled for the recognition of the unamortized deferred gain under the LPT/ADC Agreement at March 31, 2024 and December 31, 2023 was computed as follows:

March 31, 2024 December 31, 2023

Book value per common share

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This measure is calculated using the total principal amount of debt divided by the sum of adjusted total capital resources as computed in the table above.

The ratio of Debt to Adjusted Total Capital Resources at September 30, 2023 and December 31, 2022 was computed as follows:

($ in thousands) September 30, 2023 December 31, 2022

The ratio of Debt to Adjusted Total Capital Resources at March 31, 2024 and December 31, 2023 was computed as follows:

($ in thousands) March 31, 2024 December 31, 2023

Senior notes - principal amount

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To the extent that these exposures are not fully hedged or the hedges are ineffective, our results of operations or equity may be adversely affected.

At September 30, 2023, no such hedges or hedging strategies were in force or had been entered into.

At March 31, 2024, no such hedges or hedging strategies were in force or had been entered into.

We measure monetary assets and liabilities denominated in foreign currencies at period end exchange rates, with the resulting foreign exchange gains and losses recognized in the unaudited Condensed Consolidated Statements of Income.

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The effect of the translation adjustments for foreign operations is included in AOCI.

Net foreign exchange gains of $4.6 million and losses of $0.1 million were generated during the three and nine months ended September 30, 2023, respectively, compared to net foreign exchange gains of $8.6 million and $20.5 million for the three and nine months ended September 30, 2022, respectively.

The decrease in foreign exchange gains for both the three and nine months ended September 30, 2023 compared to the same respective periods in 2022 was due to a decline in the value of the U.S.

Net foreign exchange gains of $2.1 million were generated during the three months ended March 31, 2024 compared to net foreign exchange losses of $2.0 million for the three months ended March 31, 2023.

The increase in foreign exchange gains for the three months ended March 31, 2024 compared to the same period in 2023 was largely due to an appreciation in the value of the U.S.

dollar relative to the euro and the British pound.

At September 30, 2023, net foreign exchange gains and losses were primarily driven by exposures to euro, British pound and other non-USD denominated net loss reserves and insurance related liabilities in excess of foreign currency assets.

Our non-USD denominated liabilities at September 30, 2023 included reserve for net loss and LAE of $276.3 million.

Our foreign currency asset exposures at September 30, 2023 include $167.2 million of fixed maturity securities managed by our investment managers who have the discretion to hold foreign currency exposures as part of their total return strategy as well as $26.0 million of equity method real estate investments denominated in Canadian dollars.

At March 31, 2024, net foreign exchange gains were primarily driven by exposures to euro, British pound and other non-USD denominated net loss reserves and insurance related liabilities in excess of foreign currency assets.

Our non-USD denominated liabilities at March 31, 2024 included reserve for net loss and LAE of $268.2 million.

Our foreign currency asset exposures at March 31, 2024 include $164.9 million of fixed maturity securities managed by our investment managers who have the discretion to hold foreign currency exposures as part of their total return strategy, $28.6 million of equity method real estate investments denominated in Canadian dollars, as well as $15.8 million of funds withheld receivable.

Effects of Inflation

4 unchanged sentences

We continue to monitor inflationary impacts resulting from recent government stimulus, sharp increases in demand, labor force and supply chain disruptions, among other factors, on our loss cost trends.

Our reserves predominantly consist of workers’ compensation, general liability, and hospital liability.

Our reserves predominantly consist of workers’ compensation, general liability, and hospital liability business.

These long tailed lines of business have been subject to the longer term trend of social inflation, but we have not observed significant impacts for the recently elevated levels of inflation.

1 unchanged sentence

Governmental policy responses to inflation have significantly increased interest rates which, in the short term, have contributed to unrealized losses on our fixed income investments, particularly on our fixed maturity securities.

There remains uncertainty around the rate and direction of inflation and we continue to monitor our liquidity, capital and potential earnings impact of these changes but remain focused on our asset allocation decisions as described in our "Business Strategy" section of Item 7 " Management’s Discussion and Analysis of Financial Condition and Results of Operations - Overview ".

While general economic inflation has eased in recent quarters, there remains uncertainty around the rate and direction of inflation and interest rates and we continue to monitor our liquidity, capital and potential earnings impact of these changes but remain focused on our asset allocation decisions as described in our "Business Strategy" section of Item 2.

" Management’s Discussion and Analysis of Financial Condition and Results of Operations - Overview ".

Inflation may also result in increased wage pressures for our operating expenses, as we remain focused on being a competitive employer in our market.

Labor shortages arising from the conditions of the COVID-19 pandemic have contributed to uncertainty in attracting and retaining talent that may put pressure on higher wage costs.

Currently, salaries and incentive compensation costs comprise more than one-half of our total general and administrative expenses and thereby could have a material impact our net operating results.

Currently, while salaries and incentive compensation costs comprise less than one-half of our total general and administrative expenses, continuing inflation and tight labor conditions could have a material impact on our net operating results.

Off-Balance Sheet Arrangements

At September 30, 2023, we did not have any off-balance sheet arrangements as defined by Item 303(a) (4) of Regulation S-K.

At March 31, 2024, we did not have any off-balance sheet arrangements as defined by Item 303(a) (4) of Regulation S-K.

Recent Accounting Pronouncements

2 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 2. Management’s Discussion and Analysis