What changed in this filing

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Item 1. Financial Statements

2024-08-08 compared with 2024-05-09 · 385 added, 208 removed, 1167 unchanged (34% of the section changed)

76 unchanged sentences

dollars, except per share data)

For the Three Months Ended March 31,

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

2024 2023 2024 2023

Gross premiums written

3 unchanged sentences

Change in unearned premiums

3,738 4,164 7,832 12,406

Net premiums earned

Other insurance revenue (expense), net

12,077 11,039 24,485 20,041

Other insurance revenue, net

Net investment income

6,953 10,518 14,653 20,063

Net realized and unrealized investment gains

1,457 1,145 10,207 2,150

Total revenues

1 unchanged sentence

Net loss and loss adjustment expenses

13,971 11,532 25,596 21,347

Commission and other acquisition expenses

4,813 4,945 10,406 9,180

General and administrative expenses

7,879 6,839 15,939 16,947

Interest and amortization expenses

4,816 4,773 9,631 8,597

Foreign exchange and other (gains) losses

2 unchanged sentences

31,479 30,710 59,519 61,508

Income (loss) before income taxes and interest in income (loss) of equity method investments

Loss before income taxes and interest in income of equity method investments

( 10,992 ) ( 7,930 ) ( 10,128 ) ( 19,235 )

income tax expense (benefit)

Interest in income (loss) of equity method investments

Net income (loss)

442 ( 194 ) 453 ( 222 )

Basic and diluted earnings (loss) per share available (attributable) to common shareholders

Interest in income of equity method investments

1,463 4,803 2,069 4,752

$ ( 9,971 ) $ ( 2,933 ) $ ( 8,512 ) $ ( 14,261 )

Basic and diluted loss per share attributable to common shareholders

$ ( 0.10 ) $ ( 0.03 ) $ ( 0.08 ) $ ( 0.14 )

Weighted average number of common shares - basic and diluted 100,159,973 101,754,218 100,308,549 101,653,848

3 unchanged sentences

(in thousands of U.S.

For the Three Months Ended March 31,

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

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

2024 2023 2024 2023

Net loss $ ( 9,971 ) $ ( 2,933 ) $ ( 8,512 ) $ ( 14,261 )

Other comprehensive (loss) income

Net unrealized holdings gains on AFS securities arising during period

Net unrealized holdings gains on AFS securities

487 847 1,505 2,783

Foreign currency translation adjustment ( 775 ) 766 ( 2,511 ) 1,334

Other comprehensive (loss) income, before tax

Income tax expense related to components of other comprehensive (loss) income ( 4 ) ( 30 )

( 288 ) 1,613 ( 1,006 ) 4,117

Income tax (expense) benefit related to components of other comprehensive (loss) income ( 6 ) 11 ( 10 ) ( 19 )

Other comprehensive (loss) income, after tax

Comprehensive income (loss)

( 294 ) 1,624 ( 1,016 ) 4,098

Comprehensive loss

$ ( 10,265 ) $ ( 1,309 ) $ ( 9,528 ) $ ( 10,163 )

See accompanying notes to the unaudited Condensed Consolidated Financial Statements.

2 unchanged sentences

(in thousands of U.S.

For the Three Months Ended March 31,

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

2024 2023 2024 2023

Common shares

3 unchanged sentences

Ending balance

1,503 1,497 1,503 1,497

Additional paid-in capital

3 unchanged sentences

Share-based compensation expense

542 338 906 1,115

Exchange of preference shares — — — 93

5 unchanged sentences

Change in net unrealized investment gains

481 858 1,495 2,764

Foreign currency translation adjustment

6 unchanged sentences

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

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

Net loss ( 9,971 ) ( 2,933 ) ( 8,512 ) ( 14,261 )

Ending balance

12 unchanged sentences

(in thousands of U.S.

For the Three Months Ended March 31, 2024 2023

For the Six Months Ended June 30, 2024 2023

Cash flows from operating activities

Net income (loss)

$ ( 8,512 ) $ ( 14,261 )

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

Depreciation, amortization and share-based compensation ( 479 ) ( 579 )

Interest in (income) loss of equity method investments

Other non-cash expenses including depreciation, amortization and share-based compensation ( 617 ) ( 801 )

Interest in income of equity method investments

( 2,069 ) ( 4,752 )

Net realized and unrealized investment gains

14 unchanged sentences

Accrued expenses and other liabilities ( 3,860 ) ( 36,092 )

Net cash provided by (used in) operating activities

Net cash used in operating activities

( 15,332 ) ( 63,662 )

8 unchanged sentences

Proceeds from sale and redemption of equity method investments 3,436 15,746

Proceeds from sale and redemption of equity securities — 469

Others, net ( 418 ) ( 32 )

Net cash (used in) provided by investing activities

Net cash provided by investing activities

12,650 45,183

1 unchanged sentence

Repurchase of common shares ( 2,492 ) ( 821 )

Repurchase of senior notes — ( 95 )

Net cash used in financing activities

44 unchanged sentences

Since 2023, the Company has been 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.

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 Financial Services, Inc.

On May 3, 2024, Maiden LF and Maiden GF entered into a Renewal Rights and Asset Purchase Agreement with AmTrust Nordic AB, a Swedish unit of AmTrust Financial Services, Inc.

("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.

On June 20, 2024, Maiden LF and Maiden GF entered into a Renewal Rights and Asset Purchase Agreement with AmTrust Europe Limited ("AEL") and AmTrust International Underwriters DAC ("AIU DAC"), both wholly owned subsidiaries of AmTrust, which is expected to cover the majority of Maiden LF and Maiden GF's primary business written in the United Kingdom and Ireland.

These agreements are collectively referred to as the "AmTrust Renewal Rights Agreements".

Under these agreements, those AmTrust subsidiaries 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.

These transactions are part of the Company's broader plan to divest its IIS businesses as a result of its 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 the Company's target return on capital levels.

As part of these conclusions, the Company expects to enter into additional transactions to either sell or wind-up Maiden GF and Maiden LF during 2024 and is actively evaluating potential transactions.

Please see "Note 10.

Subsequent Events" for further details on this transaction.

Related Party Transactions" for details regarding the Renewal Rights Agreement.

The Company also has various historic reinsurance programs underwritten by Maiden Reinsurance which are in run-off, including the liabilities associated with AmTrust reinsurance agreements which were terminated in 2019 as discussed in "Note 10.

22 unchanged sentences

These amendments have expanded the disclosures made in "Note 4.

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

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

MAIDEN HOLDINGS, LTD.

9 unchanged sentences

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.

(“AII”) and the European hospital liability quota share reinsurance contract ("European Hospital Liability Quota Share") with AmTrust’s wholly owned subsidiaries, AmTrust Europe Limited ("AEL") and AmTrust International Underwriters DAC ("AIU DAC"), which are both in run-off effective January 1, 2019.

(“AII”) and the European hospital liability quota share reinsurance contract ("European Hospital Liability Quota Share") with AmTrust’s wholly owned subsidiaries, AEL and AIU DAC, which are both in run-off effective January 1, 2019.

Please refer to "Note 10.

5 unchanged sentences

All remaining assets are allocated to Corporate.

The following tables summarize the underwriting results of our reportable segments and the reconciliation of our reportable segments' underwriting results to consolidated net income (loss) for the three months ended March 31, 2024 and 2023, respectively:

For the Three Months Ended March 31, 2024 Diversified Reinsurance AmTrust Reinsurance Total

The following tables summarize the underwriting results of our reportable segments and the reconciliation of our reportable segments' underwriting results to consolidated net loss for the three months ended June 30, 2024 and 2023, respectively:

For the Three Months Ended June 30, 2024 Diversified Reinsurance AmTrust Reinsurance Total

Gross premiums written

4 unchanged sentences

$ 8,229 $ 3,848 $ 12,077

Other insurance revenue

Net loss and LAE ( 5,354 ) ( 8,617 ) ( 13,971 )

5 unchanged sentences

$ ( 2,777 ) $ ( 6,988 ) ( 9,765 )

Reconciliation to net income

Reconciliation to net loss

Net investment income and net realized and unrealized investment gains

Interest and amortization expenses

Foreign exchange and other gains, net

Other general and administrative expenses

6 unchanged sentences

Segment Information (continued)

For the Three Months Ended March 31, 2023 Diversified Reinsurance AmTrust Reinsurance Total

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

Gross premiums written

4 unchanged sentences

$ 7,204 $ 3,835 $ 11,039

Other insurance expense

Other insurance revenue

Net loss and LAE

( 3,828 ) ( 7,704 ) ( 11,532 )

Commission and other acquisition expenses

( 3,514 ) ( 1,431 ) ( 4,945 )

General and administrative expenses

( 3,058 ) ( 844 ) ( 3,902 )

Underwriting loss

$ ( 3,118 ) $ ( 6,144 ) ( 9,262 )

Reconciliation to net loss

Net investment income and net realized and unrealized investment gains

Interest and amortization expenses

Foreign exchange and other losses, net

Other general and administrative expenses

Income tax benefit

Interest in income from equity method investments

The following tables summarize the underwriting results of our reportable segments and the reconciliation of our reportable segments' underwriting results to consolidated net loss for the six months ended June 30, 2024 and 2023, respectively:

For the Six Months Ended June 30, 2024 Diversified Reinsurance AmTrust Reinsurance Total

Gross premiums written

$ 17,321 $ ( 549 ) $ 16,772

Net premiums written

$ 17,202 $ ( 549 ) $ 16,653

Net premiums earned

$ 17,220 $ 7,265 $ 24,485

Other insurance revenue 46 — 46

Net loss and LAE

9 unchanged sentences

Interest and amortization expenses

Foreign exchange and other gains, net

Other general and administrative expenses

Income tax expense

Interest in income from equity method investments

MAIDEN HOLDINGS, LTD.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

(in thousands of U.S.

dollars, except share and per share data)

Segment Information (continued)

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

Gross premiums written

$ 13,501 $ ( 5,790 ) $ 7,711

Net premiums written

$ 13,425 $ ( 5,790 ) $ 7,635

Net premiums earned

$ 14,675 $ 5,366 $ 20,041

Other insurance revenue

Net loss and LAE

( 6,984 ) ( 14,363 ) ( 21,347 )

Commission and other acquisition expenses

( 7,170 ) ( 2,010 ) ( 9,180 )

General and administrative expenses

( 5,647 ) ( 1,401 ) ( 7,048 )

Underwriting loss

$ ( 5,107 ) $ ( 12,408 ) ( 17,515 )

Reconciliation to net loss

Net investment income and net realized and unrealized investment gains

Interest and amortization expenses

Foreign exchange and other losses, net

1 unchanged sentence

Income tax benefit

Interest in loss from equity method investments

The following tables summarize the financial position of the Company's reportable segments including a reconciliation to the Company's consolidated total assets at March 31, 2024 and December 31, 2023:

March 31, 2024 Diversified Reinsurance AmTrust Reinsurance Total

Interest in income from equity method investments

MAIDEN HOLDINGS, LTD.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

(in thousands of U.S.

dollars, except share and per share data)

Segment Information (continued)

The following tables summarize the financial position of the Company's reportable segments including a reconciliation to the Company's consolidated total assets at June 30, 2024 and December 31, 2023:

June 30, 2024 Diversified Reinsurance AmTrust Reinsurance Total

Reinsurance balances receivable, net

36 unchanged sentences

Segment Information (continued)

The following tables set forth financial information relating to net premiums written by major line of business and reportable segment for the three months ended March 31, 2024 and 2023:

For the Three Months Ended March 31, 2024 2023

The following tables set forth financial information relating to net premiums written by major line of business and reportable segment for the three and six months ended June 30, 2024 and 2023:

For the Three Months Ended June 30, 2024 2023

Net premiums written

9 unchanged sentences

Total AmTrust Reinsurance

Total Net Premiums Written

$ 8,339 $ 6,875

For the Six Months Ended June 30, 2024 2023

Net premiums written Total Total

Diversified Reinsurance

International $ 17,202 $ 13,425

Total Diversified Reinsurance 17,202 13,425

AmTrust Reinsurance

Small Commercial Business

( 547 ) ( 158 )

Specialty Program

Specialty Risk and Extended Warranty

Total AmTrust Reinsurance

( 549 ) ( 5,790 )

Total Net Premiums Written

$ 16,653 $ 7,635

The following tables set forth financial information for net premiums earned by major line of business and reportable segment for the three months ended March 31, 2024 and 2023:

For the Three Months Ended March 31, 2024 2023

MAIDEN HOLDINGS, LTD.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

(in thousands of U.S.

dollars, except share and per share data)

Segment Information (continued)

The following tables set forth financial information for net premiums earned by major line of business and reportable segment for the three and six months ended June 30, 2024 and 2023:

For the Three Months Ended June 30, 2024 2023

Net premiums earned

11 unchanged sentences

$ 12,077 $ 11,039

For the Six Months Ended June 30, 2024 2023

Net premiums earned Total Total

Diversified Reinsurance

International $ 17,220 $ 14,675

Total Diversified Reinsurance 17,220 14,675

AmTrust Reinsurance

Small Commercial Business

( 547 ) ( 158 )

Specialty Program

Specialty Risk and Extended Warranty

Total AmTrust Reinsurance

Total Net Premiums Earned

$ 24,485 $ 20,041

MAIDEN HOLDINGS, LTD.

8 unchanged sentences

a) Fixed Maturities

The amortized cost, gross unrealized gains and losses, and fair value of fixed maturities at March 31, 2024 and December 31, 2023 are as follows:

March 31, 2024 Original or amortized cost Gross unrealized gains Gross unrealized losses Fair value

The amortized cost, gross unrealized gains and losses, and fair value of fixed maturities at June 30, 2024 and December 31, 2023 are as follows:

June 30, 2024 Original or amortized cost Gross unrealized gains Gross unrealized losses Fair value

treasury bonds

20 unchanged sentences

The Company separately presents the accrued interest receivable balance on its AFS fixed maturity investments on the Condensed Consolidated Balance Sheets under accrued investment income.

The amount of accrued interest receivable on AFS securities was $ 1,370 at March 31, 2024 (December 31, 2023 - $ 1,418 ).

The amount of accrued interest receivable on AFS securities was $ 1,535 at June 30, 2024 (December 31, 2023:

The Company has elected the practical expedient to exclude accrued interest from both the fair value and the amortized cost basis of the AFS fixed maturity securities for the purposes of identifying and measuring any impairments under the allowance for expected credit losses standard adopted on January 1, 2023.

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

There was no write-off recognized on the accrued interest receivable during the three months ended March 31, 2024 and 2023.

There was no write-off recognized on the accrued interest receivable during the six months ended June 30, 2024 and 2023.

The contractual maturities of our fixed maturities are shown below.

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

March 31, 2024 Amortized cost Fair value

June 30, 2024 Amortized cost Fair value

Due in one year or less

16 unchanged sentences

Less than 12 Months 12 Months or More Total

March 31, 2024 Fair

June 30, 2024 Fair

value Unrealized

11 unchanged sentences

$ 9,370 $ ( 9 ) $ 150,537 $ ( 6,430 ) $ 159,907 $ ( 6,439 )

At March 31, 2024, there were 57 securities in an unrealized loss position with a fair value of $ 218,254 and unrealized losses of $ 6,923 .

At June 30, 2024, there were 52 securities in an unrealized loss position with a fair value of $ 159,907 and unrealized losses of $ 6,439 .

Of these securities in an unrealized loss position, there were 51 securities in our portfolio that have been in an unrealized loss position for twelve months or greater with a fair value of $ 150,537 and unrealized losses of $ 6,430 .

29 unchanged sentences

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

Based on the Company's analysis at March 31, 2024 and 2023, respectively, the unrealized losses on the Company’s AFS fixed maturity securities were due to non-credit factors and were expected to be recovered as the related securities approach maturity.

At March 31, 2024, the Company did not intend to sell the securities in an unrealized loss position and it is more likely than not that the Company will not be required to sell these securities before the anticipated recovery of their amortized costs.

Therefore, there was no allowance recorded for expected credit losses on AFS securities for the three months ended March 31, 2024 and 2023.

Based on the Company's analysis at June 30, 2024 and 2023, respectively, the unrealized losses on the Company’s AFS fixed maturity securities were due to non-credit factors and were expected to be recovered as the related securities approach maturity.

At June 30, 2024, the Company did not intend to sell the securities in an unrealized loss position and it is not more likely than not that the Company will be required to sell these securities before the anticipated recovery of their amortized costs.

Therefore, there was no allowance recorded for expected credit losses on AFS securities for the three and six months ended June 30, 2024 and 2023.

MAIDEN HOLDINGS, LTD.

3 unchanged sentences

Investments (continued)

The following tables summarize the credit ratings of our fixed maturities as at March 31, 2024 and December 31, 2023:

March 31, 2024 Amortized cost Fair value % of Total

The following tables summarize the credit ratings of our fixed maturities as at June 30, 2024 and December 31, 2023:

June 30, 2024 Amortized cost Fair value % of Total

treasury bonds

31 unchanged sentences

Other investments

The table shows the composition of the Company's other investments as of March 31, 2024 and December 31, 2023:

March 31, 2024 December 31, 2023

The table shows the composition of the Company's other investments as of June 30, 2024 and December 31, 2023:

June 30, 2024 December 31, 2023

Carrying value % of Total Carrying value % of Total

5 unchanged sentences

Total other investments $ 208,595 100.0 % $ 182,811 100.0 %

The Company's collateralized investments in direct lending entities of $ 72,643 at March 31, 2024 (December 31, 2023 - $ 69,005 ) are carried at cost less an allowance for expected credit losses, with any indication of credit loss recognized in net income when determined.

An allowance for expected credit losses of $ 1,023 was reported on the investments in direct lending entities as at March 31, 2024 and December 31, 2023.

The Company's collateralized investments in direct lending entities of $ 77,618 at June 30, 2024 (December 31, 2023:$ 69,005 ) are carried at cost less an allowance for expected credit losses, with any indication of credit loss recognized in net income when determined.

An allowance for expected credit losses of $ 1,023 was reported on the investments in direct lending entities as at June 30, 2024 and December 31, 2023.

Please see "Note 5(d).

11 unchanged sentences

There is no active market for these investments.

The following table provides the cost and fair values of the equity securities held at March 31, 2024 and December 31, 2023:

March 31, 2024 December 31, 2023

The following table provides the cost and fair values of the equity securities held at June 30, 2024 and December 31, 2023:

June 30, 2024 December 31, 2023

Cost Fair Value Cost Fair Value

3 unchanged sentences

Total equity securities $ 43,439 $ 44,388 $ 43,439 $ 45,299

With the exception of the publicly traded equity investments in common stocks presented in the table above, all of the privately held securities held at March 31, 2024 are subject to contractual sale restrictions.

With the exception of the publicly traded equity investments in common stocks presented in the table above, all of the privately held securities held at June 30, 2024 are subject to contractual sale restrictions.

Each of these investments are subject to agreements that restrict the transfer, sale, and indemnification of these privately held investments indefinitely.

6 unchanged sentences

The equity method investments currently include real estate investments and other investments.

The table below shows the carrying value of the Company's equity method investments as of March 31, 2024 and December 31, 2023:

March 31, 2024 December 31, 2023

The table below shows the carrying value of the Company's equity method investments as of June 30, 2024 and December 31, 2023:

June 30, 2024 December 31, 2023

Carrying Value % of Total Carrying Value % of Total

13 unchanged sentences

c) Net Investment Income

Net investment income was derived from the following sources for the three months ended March 31, 2024 and 2023:

For the Three Months Ended March 31,

Net investment income was derived from the following sources for the three and six months ended June 30, 2024 and 2023:

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

2024 2023 2024 2023

Fixed maturities

2 unchanged sentences

Interest income from loan to related party 3,053 2,927 6,123 5,625

Other investments 1,211 1,701 2,417 2,588

Cash and cash equivalents 211 112 386 418

7,187 10,707 14,979 20,351

Investment expenses

4 unchanged sentences

Realized gains or losses on the sale of investments are determined on the basis of the first in first out cost method.

The following tables show the net realized and unrealized investment gains (losses) included in the Condensed Consolidated Statements of Income for the three months ended March 31, 2024 and 2023:

For the Three Months Ended March 31, 2024 Gross gains Gross losses Net

The following tables show the net realized and unrealized investment gains (losses) included in the Condensed Consolidated Statements of Income for the three and six months ended June 30, 2024 and 2023:

For the Three Months Ended June 30, 2024 Gross gains Gross losses Net

Fixed maturities

3 unchanged sentences

Net realized and unrealized investment gains (losses) $ 2,792 $ ( 1,335 ) $ 1,457

For the Three Months Ended March 31, 2023 Gross gains Gross losses Net

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

Fixed maturities

$ — $ ( 786 ) $ ( 786 )

Equity securities 454 ( 1 ) 453

2 unchanged sentences

Net realized and unrealized investment gains (losses) $ 2,688 $ ( 1,543 ) $ 1,145

For the Six Months Ended June 30, 2024 Gross gains Gross losses Net

Fixed maturities

$ 2 $ ( 297 ) $ ( 295 )

Equity securities 345 ( 1,257 ) ( 912 )

Other investments

13,915 ( 2,501 ) 11,414

Net realized and unrealized investment gains (losses) $ 14,262 $ ( 4,055 ) $ 10,207

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

Fixed maturities

$ — $ ( 786 ) $ ( 786 )

Equity securities 1,478 ( 379 ) 1,099

Other investments

3,875 ( 2,038 ) 1,837

Net realized and unrealized investment gains (losses) $ 5,353 $ ( 3,203 ) $ 2,150

MAIDEN HOLDINGS, LTD.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

(in thousands of U.S.

dollars, except share and per share data)

Investments (continued)

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

Unrealized (losses) gains recognized for equity securities still held at reporting date for the three months ended March 31, 2024 and 2023, respectively, included:

For the Three Months Ended March 31,

Unrealized (losses) gains recognized for equity securities still held at reporting date for the three and six months ended June 30, 2024 and 2023, respectively, included:

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

2024 2023 2024 2023

Net (losses) gains recognized for equity securities $ ( 41 ) $ 453 $ ( 912 ) $ 1,099

1 unchanged sentence

Unrealized (losses) gains recognized for equity securities still held at reporting date $ ( 41 ) $ 443 $ ( 912 ) $ 913

Proceeds from sales of fixed maturity investments were $ 23,835 for the three months ended March 31, 2024 (2023 - $ 954 ).

Net unrealized losses included in accumulated other comprehensive income ("AOCI") were as follows at March 31, 2024 and December 31, 2023, respectively:

March 31, 2024 December 31, 2023

Proceeds from sales of fixed maturity investments were $ 18,526 and $ 42,361 for the three and six months ended June 30, 2024, respectively (2023:

$ 43,829 and $ 44,783 , respectively).

Net unrealized losses included in accumulated other comprehensive income ("AOCI") were as follows at June 30, 2024 and December 31, 2023, respectively:

June 30, 2024 December 31, 2023

Net unrealized losses on fixed maturity investments

5 unchanged sentences

$ 1,495 $ 7,884

MAIDEN HOLDINGS, LTD.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

(in thousands of U.S.

dollars, except share and per share data)

Investments (continued)

e) Restricted Cash and Cash Equivalents and Investments

1 unchanged sentence

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

The fair values of restricted assets at March 31, 2024 and December 31, 2023 are:

March 31, 2024 December 31, 2023

The fair values of restricted assets at June 30, 2024 and December 31, 2023 are:

June 30, 2024 December 31, 2023

Restricted cash – third party agreements $ 10,875 $ 6,019

54 unchanged sentences

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

The following describes the valuation techniques used by the Company to determine the fair value of financial instruments that are measured at fair value on a recurring basis held at March 31, 2024 and December 31, 2023.

government and U.S.

69 unchanged sentences

Fair Value of Financial Instruments (continued)

At March 31, 2024 and December 31, 2023, the Company classified its financial instruments measured at fair value on a recurring basis in the following valuation hierarchy:

March 31, 2024 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Fair Value Based on NAV Practical Expedient Total Fair Value

At June 30, 2024 and December 31, 2023, the Company classified its financial instruments measured at fair value on a recurring basis in the following valuation hierarchy:

June 30, 2024 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Fair Value Based on NAV Practical Expedient Total Fair Value

Fixed maturities

28 unchanged sentences

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

The Pricing Service was utilized to estimate fair value measurements for 98.0 % and 97.9 % of our fixed maturities at March 31, 2024 and December 31, 2023, respectively.

The Pricing Service was utilized to estimate fair value measurements for 97.7 % and 97.9 % of our fixed maturities at June 30, 2024 and December 31, 2023, respectively.

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

1 unchanged sentence

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

At March 31, 2024 and December 31, 2023, approximately 2.0 % and 2.1 %, respectively, of our fixed maturities were valued using the market approach.

At March 31, 2024, one security or $ 5,314 (December 31, 2023 - one security or $ 5,382 ) of our fixed maturity investment portfolio classified as Level 3 in the FMV hierarchy table was priced using a quotation from a broker and/or custodian as opposed to the Pricing Service due to lack of information available.

At March 31, 2024 and December 31, 2023, the Company has not adjusted any pricing provided to it based on the review performed by its investment managers.

There were no transfers to or from Level 3 during the three months ended March 31, 2024 and 2023.

At June 30, 2024 and December 31, 2023, approximately 2.3 % and 2.1 %, respectively, of our fixed maturities were valued using the market approach.

At June 30, 2024, one security or $ 5,008 (December 31, 2023:

one security or $ 5,382 ) of our fixed maturity investment portfolio classified as Level 2 in the FMV hierarchy table was priced using a binding quotation from a broker and/or custodian as opposed to the Pricing Service and therefore was transferred from Level 3 to Level 2 during the three and six months ended June 30, 2024.

This same security was classified as Level 3 at December 31, 2023.

MAIDEN HOLDINGS, LTD.

3 unchanged sentences

Fair Value of Financial Instruments (continued)

At June 30, 2024 and December 31, 2023, the Company has not adjusted any pricing provided to it based on the review performed by its investment managers.

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

At March 31, 2024, the Company holds Level 3 financial instruments which consist of corporate bonds, private credit funds and privately held investments of $ 57,994 (December 31, 2023 - $ 52,483 ) and an underwriting-related derivative liability of $ 3,984 (December 31, 2023 - $ 3,984 ) on a reinsurance contract written by GLS which is included in accrued expenses and other liabilities.

At June 30, 2024, the Company holds Level 3 financial instruments which consist of private credit funds and privately held investments of $ 52,468 (December 31, 2023:

$ 52,483 ) and an underwriting-related derivative liability of $ 3,984 (December 31, 2023:

$ 3,984 ) on a reinsurance contract written by GLS which is included in accrued expenses and other liabilities.

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

2 unchanged sentences

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

The following table provides a summary of quantitative information regarding the significant unobservable inputs used in determining the fair value of other investments measured at fair value on a recurring basis under the Level 3 classification at March 31, 2024:

Fair Value Valuation Technique Unobservable Inputs Range

2 unchanged sentences

Other investments - Private credit funds 1,600 Quarterly financial statements Price/book ratios of comparable public companies

Corporate bonds 5,314 Non-binding broker dealer quotation

Total Level 3 investments $ 52,468

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

The following table shows the reconciliation of beginning and ending balances for investments measured at fair value on a recurring basis using Level 3 inputs for the three months ended March 31, 2024 and 2023.

The following table shows the reconciliation of beginning and ending balances for investments measured at fair value on a recurring basis using Level 3 inputs for the three and six months ended June 30, 2024 and 2023.

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

For the Three Months Ended March 31,

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

2024 2023 2024 2023

Balance - beginning of period $ 57,994 $ 21,198 $ 52,483 $ 18,806

Net realized and unrealized gains recognized in the statement of income 5,511 1,392

Net realized and unrealized (losses) gains recognized in the statement of income

( 518 ) 200 4,993 1,592

Purchases — — — 1,000

Transfers out of Level 3 into Level 2 ( 5,008 ) — ( 5,008 ) —

Total Level 3 investments - end of period $ 52,468 $ 21,398 $ 52,468 $ 21,398

1 unchanged sentence

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

At March 31, 2024, the carrying values of cash equivalents (including restricted amounts), accrued investment income, reinsurance balances receivable, loan to related party, and certain other assets and liabilities approximate fair values due to their inherent short duration.

At June 30, 2024, the carrying values of cash equivalents (including restricted amounts), accrued investment income, reinsurance balances receivable, loan to related party, and certain other assets and liabilities approximate fair values due to their inherent short duration.

As these financial instruments are not actively traded, the fair values of these financial instruments are classified as Level 2 in the fair value hierarchy.

9 unchanged sentences

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

The following table presents the respective carrying value and fair value for the Senior Notes as at March 31, 2024 and December 31, 2023:

March 31, 2024 December 31, 2023

The following table presents the respective carrying value and fair value for the Senior Notes as at June 30, 2024 and December 31, 2023:

June 30, 2024 December 31, 2023

Carrying Value Fair Value Carrying Value Fair Value

11 unchanged sentences

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

At March 31, 2024, the aggregate authorized share capital of the Company is 200,000,000 shares from which 150,134,586 common shares were issued, of which 100,393,538 common shares are outstanding, and 49,741,048 shares are treasury shares (please see Note 6.

At June 30, 2024, the aggregate authorized share capital of the Company is 200,000,000 shares from which 150,298,798 common shares were issued, of which 99,811,336 common shares are outstanding, and 50,487,462 shares are treasury shares (please see Note 6.

(b) Treasury Shares below for additional information).

The remaining 49,865,414 shares are undesignated at March 31, 2024.

At March 31, 2024, 2,036,848 common shares will be issued and outstanding upon vesting of restricted shares, and 4,204,356 common shares remaining are reserved for issuance under the 2019 Omnibus Incentive Plan.

The remaining 49,701,202 shares are undesignated at June 30, 2024.

At June 30, 2024, 2,035,634 common shares will be issued and outstanding upon vesting of restricted shares, and 4,041,358 common shares remaining are reserved for issuance under the 2019 Omnibus Incentive Plan.

b) Treasury Shares

On February 21, 2017, the Company's Board of Directors approved the repurchase of up to $ 100,000 of the Company's common shares from time to time at market prices.

During the three months ended March 31, 2024, Maiden Reinsurance repurchased 352,111 common shares at an average price per share of $ 1.91 under the Company's share repurchase plan (2023 - none ).

The Company's remaining authorization is $ 70,942 for common share repurchases at March 31, 2024 (December 31, 2023 - $ 71,615 ).

During the three months ended March 31, 2024, the Company also repurchased 128,702 common shares (2023 - 128,156 ) at an average price per share of $ 1.77 (2023 - $ 2.25 ) from employees, which represent tax withholding in respect of tax obligations on the vesting of both non-performance-based and discretionary performance-based restricted shares.

Treasury shares include 43,231,034 common shares owned by Maiden Reinsurance consisting of 41,439,348 shares issued as part of the exchange for preference shares held ("Exchange") and 1,791,686 shares directly purchased on the open market by Maiden Reinsurance which are not treated as outstanding common shares on the Condensed Consolidated Balance Sheet at March 31, 2024.

During the three and six months ended June 30, 2024, Maiden Reinsurance repurchased 747,561 and 1,099,672 common shares, respectively, at an average price per share of $ 2.13 and $ 2.06 , respectively, under the Company's share repurchase plan.

During the three and six months ended June 30, 2023, Maiden Reinsurance repurchased 299,630 common shares at an average price per share of $ 2.07 under the Company's share repurchase plan.

The Company's remaining authorization is $ 69,351 for common share repurchases at June 30, 2024 (December 31, 2023:

During the six months ended June 30, 2024, the Company also repurchased 127,555 common shares (2023:

128,731 ) at an average price per share of $ 1.79 (2023:

$ 2.25 ) from employees, which represent tax withholding in respect of tax obligations on the vesting of both non-performance-based and discretionary performance-based restricted shares.

Treasury shares include 43,978,595 common shares owned by Maiden Reinsurance consisting of 41,439,348 shares issued as part of the exchange for preference shares held ("Exchange") and 2,539,247 shares directly purchased on the open market by Maiden Reinsurance which are not treated as outstanding common shares on the Condensed Consolidated Balance Sheet at June 30, 2024.

Please see further information on the Exchange and related preference share repurchases in the Annual Report on Form 10-K for the year ended December 31, 2023, filed with the SEC on March 12, 2024.

T he table below includes the total number of treasury shares outstanding at March 31, 2024 and December 31, 2023, respectively:

March 31, 2024 December 31, 2023

The table below includes the total number of treasury shares outstanding at June 30, 2024 and December 31, 2023:

June 30, 2024 December 31, 2023

Number of shares held by Maiden Reinsurance treated as treasury shares 43,978,595 42,878,923

1 unchanged sentence

Total number of treasury shares at the end of the reporting period 50,487,462 49,260,235

MAIDEN HOLDINGS, LTD.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

(in thousands of U.S.

dollars, except share and per share data)

Shareholders' Equity (continued)

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

For the Three Months Ended March 31, 2024 Change in net unrealized gains on investment Foreign currency translation Total

For the Three Months Ended June 30, 2024 Change in net unrealized gains on investment Foreign currency translation Total

Beginning balance $ ( 6,770 ) $ ( 25,421 ) $ ( 32,191 )

1 unchanged sentence

Ending balance, Maiden shareholders $ ( 6,289 ) $ ( 26,196 ) $ ( 32,485 )

For the Three Months Ended March 31, 2023 Change in net unrealized gains on investment Foreign currency translation Total

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

Beginning balance $ ( 13,762 ) $ ( 24,998 ) $ ( 38,760 )

1 unchanged sentence

Ending balance, Maiden shareholders $ ( 12,904 ) $ ( 24,232 ) $ ( 37,136 )

For the Six Months Ended June 30, 2024 Change in net unrealized gains on investment Foreign currency translation Total

Beginning balance

$ ( 7,784 ) $ ( 23,685 ) $ ( 31,469 )

Other comprehensive income (loss) before reclassifications 1,495 ( 2,511 ) ( 1,016 )

Ending balance, Maiden shareholders

$ ( 6,289 ) $ ( 26,196 ) $ ( 32,485 )

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

Beginning balance

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

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

Ending balance, Maiden shareholders

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

MAIDEN HOLDINGS, LTD.

3 unchanged sentences

Long-Term Debt

At March 31, 2024 and December 31, 2023, Maiden Holdings had outstanding publicly-traded senior notes which were issued in 2016 ("2016 Senior Notes") and its wholly owned subsidiary, Maiden Holdings North America, Ltd.

At June 30, 2024 and December 31, 2023, Maiden Holdings had outstanding publicly-traded senior notes which were issued in 2016 ("2016 Senior Notes") and its wholly owned subsidiary, Maiden Holdings North America, Ltd.

("Maiden NA") had outstanding publicly-traded senior notes which were issued in 2013 ("2013 Senior Notes") (collectively "Senior Notes").

1 unchanged sentence

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

The following tables detail the issuances of Senior Notes outstanding at March 31, 2024 and December 31, 2023:

March 31, 2024 2016 Senior Notes 2013 Senior Notes Total

The following tables detail the issuances of Senior Notes outstanding at June 30, 2024 and December 31, 2023:

June 30, 2024 2016 Senior Notes 2013 Senior Notes Total

Principal amount

13 unchanged sentences

Effective interest rate 7.07 % 8.04 %

Total interest and amortization expense incurred on the Senior Notes for the three months ended March 31, 2024 was $ 4,815 (2023 - $ 3,824 ), of which $ 1,342 was accrued as interest payable at both March 31, 2024 and December 31, 2023, respectively.

Total interest and amortization expense incurred on the Senior Notes for the three and six months ended June 30, 2024 was $ 4,816 and $ 9,631 , respectively (2023:

$ 4,813 and $ 8,637 , respectively), of which $ 1,342 was accrued as interest payable at both June 30, 2024 and December 31, 2023, respectively.

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

4 unchanged sentences

On May 3, 2023, the Company's Board of Directors approved the repurchase, including the repurchase by Maiden Reinsurance in accordance with its investment guidelines, of up to $ 100,000 of the Company's Senior Notes from time to time at market prices in open market purchases or as may be privately negotiated.

The Company has a remaining authorization of $ 99,905 for Senior Notes repurchases at March 31, 2024.

The Company has a remaining authorization of $ 99,905 for Senior Notes repurchases at June 30, 2024.

During the three and six months ended June 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 .

Total interest and amortization expenses of $ 4,813 and $ 8,637 were partly offset by a realized gain of $ 40 from the repurchase of the 2013 Senior Notes during the three and six months ended June 30, 2023, respectively.

MAIDEN HOLDINGS, LTD.

7 unchanged sentences

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

The effect of ceded reinsurance on net premiums written and earned and on net loss and LAE for the three months ended March 31, 2024 and 2023 was as follows:

For the Three Months Ended March 31, 2024 2023

The effect of ceded reinsurance on net premiums written and earned and on net loss and LAE for the six months ended June 30, 2024 and 2023 was as follows:

For the Six Months Ended June 30, 2024 2023

Premiums written

2 unchanged sentences

( 119 ) ( 76 )

$ 16,653 $ 7,635

Premiums earned

1 unchanged sentence

( 115 ) ( 76 )

$ 24,485 $ 20,041

Gross loss and LAE

2 unchanged sentences

$ 25,596 $ 21,347

The Company's reinsurance recoverable on unpaid losses balance as at March 31, 2024 was $ 569,346 (December 31, 2023 - $ 564,331 ) presented in the Condensed Consolidated Balance Sheets.

As of March 31, 2024, the total allowance for expected credit losses on the Company's reinsurance recoverable balance was $ 2,438 .

The following table provides a reconciliation of the beginning and ending balances of the allowance for expected credit losses on reinsurance recoverable for the three months ended March 31, 2024 and 2023:

For the Three Months Ended March 31,

The Company's reinsurance recoverable on unpaid losses balance as at June 30, 2024 was $ 570,036 (December 31, 2023:

$ 564,331 ) presented in the Condensed Consolidated Balance Sheets.

As of June 30, 2024, the total allowance for expected credit losses on the Company's reinsurance recoverable balance was $ 2,735 (December 31, 2023:

The following table provides a reconciliation of the beginning and ending balances of the allowance for expected credit losses on reinsurance recoverable for the three and six months ended June 30, 2024 and 2023:

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

2024 2023 2024 2023

Allowance for expected credit losses on reinsurance recoverable, beginning of period $ 2,438 $ 4,254 $ 3,240 $ 4,277

Decrease in allowance for expected credit losses on reinsurance recoverable where credit losses were previously recognized

Increase (decrease) in allowance for expected credit losses on reinsurance recoverable where credit losses were previously recognized

297 276 ( 505 ) 253

2 unchanged sentences

treaty reinsurance business held by Maiden Reinsurance were 100.0 % retroceded to Cavello in exchange for a ceding commission.

The reinsurance recoverable on unpaid losses due from Cavello under this retrocession agreement was $ 43,094 at March 31, 2024 (December 31, 2023 - $ 43,176 ).

The recoverable due from Cavello is net of an allowance for expected credit losses of $ 2,284 as at March 31, 2024 (December 31, 2023 - $ 2,769 ).

The reinsurance recoverable on unpaid losses due from Cavello under this retrocession agreement was $ 42,245 at June 30, 2024 (December 31, 2023:

The recoverable due from Cavello is net of an allowance for expected credit losses of $ 2,493 as at June 30, 2024 (December 31, 2023:

On July 31, 2019, Maiden Reinsurance and Cavello entered into a Loss Portfolio Transfer and Adverse Development Cover Agreement ("LPT/ADC Agreement") pursuant to which Cavello assumed the loss reserves as of December 31, 2018 associated with the AmTrust Quota Share in excess of a $ 2,178,535 retention up to $ 600,000 , in exchange for a retrocession premium of $ 445,000 .

2 unchanged sentences

The LPT/ADC Agreement meets the criteria for risk transfer and is thus accounted for as retroactive reinsurance.

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

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

MAIDEN HOLDINGS, LTD.

3 unchanged sentences

Reinsurance (continued)

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

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

As of March 31, 2024, the reinsurance recoverable on unpaid losses under the LPT/ADC Agreement was $ 520,780 while the deferred gain liability under the LPT/ADC Agreement was $ 75,916 (December 31, 2023 - $ 515,463 and $ 70,916 , respectively).

The recoverable due under the LPT/ADC Agreement is net of an allowance for expected credit losses of $ 136 as at March 31, 2024 (December 31, 2023 - $ 453 ).

As of June 30, 2024, the reinsurance recoverable on unpaid losses under the LPT/ADC Agreement was $ 522,976 while the deferred gain liability under the LPT/ADC Agreement was $ 78,203 (December 31, 2023:

$ 515,463 and $ 70,916 , respectively).

The recoverable due under the LPT/ADC Agreement is net of an allowance for expected credit losses of $ 227 as at June 30, 2024 (December 31, 2023:

Amortization of the deferred gain will not occur until paid losses have exceeded the minimum retention under the LPT/ADC Agreement, which is estimated to be before the end of 2024.

2 unchanged sentences

Related Party Transactions".

As of March 31, 2024, the amount of collateral required was $ 473,144 (December 31, 2023 - $ 490,070 ).

As of June 30, 2024, the amount of collateral required was $ 500,334 (December 31, 2023 - $ 490,070 ).

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

Cavello's parent company, Enstar, has credit ratings of BBB+ from both Standard & Poor's and Fitch Ratings at March 31, 2024 .

Cavello's parent company, Enstar Group Limited, has credit ratings of BBB+ from both Standard & Poor's and Fitch Ratings at June 30, 2024 .

MAIDEN HOLDINGS, LTD.

16 unchanged sentences

The reserve for loss and LAE consists of:

March 31, 2024 December 31, 2023

June 30, 2024 December 31, 2023

Reserve for reported loss and LAE

5 unchanged sentences

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

For the Three Months Ended March 31, 2024 2023

For the Six Months Ended June 30, 2024 2023

Gross loss and LAE reserves, January 1

5 unchanged sentences

Net incurred losses related to:

12,233 13,197

25,596 21,347

Net paid losses related to:

7 unchanged sentences

( 6,552 ) 6,946

Net loss and LAE reserves, March 31 244,533 519,110

Reinsurance recoverable on unpaid losses, March 31 569,346 552,513

Gross loss and LAE reserves, March 31 $ 813,879 $ 1,071,623

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

Net loss and LAE reserves, June 30 192,228 439,685

Reinsurance recoverable on unpaid losses, June 30 570,036 561,576

Gross loss and LAE reserves, June 30 $ 762,264 $ 1,001,261

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

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

The Company recognized net adverse prior year loss development of $ 6,563 for the three months ended March 31, 2024 (2023 - adverse $ 3,656 ).

In the Diversified Reinsurance segment, there was favorable prior year loss development of $ 655 for the three months ended March 31, 2024 (2023 - adverse $ 757 ).

Prior year loss development for the three months ended March 31, 2024 was driven by favorable development in GLS and other runoff business lines partly offset by adverse development in International business.

Prior year 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.

The Company recognized net adverse PPD of $ 6,800 and $ 13,363 for the three and six months ended June 30, 2024, respectively (2023:

adverse $ 4,494 and $ 8,150 , respectively).

MAIDEN HOLDINGS, LTD.

3 unchanged sentences

Reserve for Loss and Loss Adjustment Expenses (continued)

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, 2024 2023

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

In the Diversified Reinsurance segment, there was adverse PPD of $ 1,557 and $ 902 for the three and six months ended June 30, 2024, respectively (2023:

adverse $ 1,317 and $ 2,074 , respectively).

The adverse PPD for the three months ended June 30, 2024 was driven by development in International and other runoff business lines.

The adverse PPD for the six months ended June 30, 2024 was due to International and facultative lines partly offset by favorable development in GLS business.

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

The table below shows prior year loss development for the AmTrust Reinsurance segment for the three and six months ended June 30, 2024 and 2023:

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

2024 2023 2024 2023

Prior Year Loss Development adverse (favorable)

AmTrust Quota Share $ 5,075 $ 2,988 $ 10,075 $ 6,436

1 unchanged sentence

European Hospital Liability Quota Share 77 6 2,612 ( 20 )

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

In the AmTrust Reinsurance segment, net adverse prior year loss development was $ 7,218 during the three months ended March 31, 2024 (2023 - adverse $ 2,899 ) as detailed in the table above.

Net adverse prior year loss development for the three months ended March 31, 2024 was primarily from the AmTrust Quota Share and European Hospital Liability.

Total AmTrust Reinsurance PPD $ 5,243 $ 3,177 $ 12,461 $ 6,076

In the AmTrust Reinsurance segment, net adverse PPD was $ 5,243 and $ 12,461 during the three and six months ended June 30, 2024, respectively (2023:

adverse $ 3,177 and $ 6,076 , respectively) as detailed in the table above.

Net adverse PPD for the three and six months ended June 30, 2024 was primarily from the AmTrust Quota Share and European Hospital Liability.

In the AmTrust Quota Share, U.S.

2 unchanged sentences

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.

The increase in the deferred gain on retroactive reinsurance was $ 4,982 for the three months ended March 31, 2024 (2023 - $ 1,573 increase).

This included an increase in the deferred gain liability and related reinsurance recoverable on unpaid losses under the LPT/ADC Agreement with Cavello of $ 5,000 for the three months ended March 31, 2024 (2023 - $ 1,573 increase) caused by adverse development on loss reserves covered under the LPT/ADC Agreement (2023 - adverse).

The deferred gain on retroactive reinsurance under the LPT/ADC Agreement represents the cumulative adverse development for covered risks in the AmTrust Quota Share as of March 31, 2024 and December 31, 2023.

Amortization of the deferred gain will not occur until paid losses have exceeded the minimum retention under the LPT/ADC Agreement, which is presently expected to be before the end of 2024.

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

The increase in the deferred gain on retroactive reinsurance was $ 7,266 for the six months ended June 30, 2024 (2023:

$ 12,317 increase).

This included an increase in the deferred gain liability and related reinsurance recoverable on unpaid losses under the LPT/ADC Agreement with Cavello of $ 7,287 for the six months ended June 30, 2024 (2023:

$ 12,300 increase) caused by adverse development on loss reserves covered under the LPT/ADC Agreement (2023 - adverse).

The deferred gain on retroactive reinsurance under the LPT/ADC Agreement represents the cumulative adverse development for covered risks in the AmTrust Quota Share as of June 30, 2024 and December 31, 2023.

Amortization of the deferred gain will not occur until paid losses have exceeded the minimum retention under the LPT/ADC Agreement, which is estimated to be before the end of 2024.

MAIDEN HOLDINGS, LTD.

48 unchanged sentences

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

The table below shows the effect of both of these quota share arrangements with AmTrust on the Company's Condensed Consolidated Income Statements for the three months ended March 31, 2024 and 2023, respectively:

For the Three Months Ended March 31,

The table below shows the effect of both of these quota share arrangements with AmTrust on the Company's Condensed Consolidated Income Statements for the three and six months ended June 30, 2024 and 2023, respectively:

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

2024 2023 2024 2023

Gross and net premiums written $ ( 44 ) $ 223 $ ( 549 ) $ ( 5,790 )

12 unchanged sentences

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

• by lending funds of $ 167,975 at March 31, 2024 and December 31, 2023 pursuant to a loan agreement entered into between those parties.

• by lending funds of $ 167,975 at June 30, 2024 and December 31, 2023 pursuant to a loan agreement entered into between those parties.

Advances under the loan are secured by promissory notes.

This loan was assigned by AII to AmTrust effective December 31, 2014 and is carried at cost.

There was no allowance for expected credit losses recognized on the loan at March 31, 2024 and December 31, 2023.

There was no allowance for expected credit losses recognized on the loan at June 30, 2024 and December 31, 2023.

Interest is payable at a rate equivalent to the Federal Funds Effective Rate ("Fed Funds") plus 200 basis points per annum.

The interest income on the loan was $ 3,070 for the three months ended March 31, 2024 (2023 - $ 2,698 ) and the effective yield was 7.3 % (2023 - 6.4 %).

The interest income on the loan was $ 3,053 and $ 6,123 for the three and six months ended June 30, 2024, respectively (2023:

$ 2,927 and $ 5,625 , respectively) and the effective yield was 7.3 % for the respective periods (2023:

7.0 % and 6.7 %, respectively).

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

• on January 11, 2019, the Company transferred $ 575,000 to AmTrust as a portion of the existing Trust Accounts used for collateral on the AmTrust Quota Share was converted to a funds withheld arrangement.

The funds withheld receivable earns an annual interest rate of 3.5 % for 2024, subject to annual adjustment ( 3.5 % for 2023).

At March 31, 2024, the funds withheld balance was $ 61,016 (December 31, 2023 - $ 128,451 ) and accrued interest was $ 844 (December 31, 2023 - $ 1,584 ).

The interest income on the funds withheld receivable was $ 844 for the three months ended March 31, 2024 (2023 - $ 3,281 ).

No allowance for expected credit losses was recognized for the fund withheld receivable from AmTrust and related accrued interest at March 31, 2024 and December 31, 2023.

The funds withheld receivable earns an annual interest rate of 3.5 % for 2024, subject to annual adjustment (2023:

At June 30, 2024, the funds withheld balance was $ 17,864 (December 31, 2023:

$ 128,451 ) and accrued interest was $ 346 and (December 31, 2023:

The interest income on the funds withheld receivable was $ 347 and $ 1,191 for the three and six months ended June 30, 2024, respectively (2023:

$ 3,061 and $ 6,342 , respectively).

No allowance for expected credit losses was recognized for the fund withheld receivable from AmTrust and related accrued interest at June 30, 2024 and December 31, 2023.

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

29 unchanged sentences

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

For AEL, the amount of the collateral held in reinsurance trust accounts at March 31, 2024 was $ 151,199 (December 31, 2023 - $ 147,635 ) and the accrued interest was $ 953 (December 31, 2023 - $ 1,091 ).

For AEL, the amount of the collateral held in reinsurance trust accounts at June 30, 2024 was $ 135,474 (December 31, 2023:

$ 147,635 ) and the accrued interest was $ 1,103 (December 31, 2023:

Asset Management Agreement

2 unchanged sentences

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

The Company recorded $ 57 of investment management fees for the three months ended March 31, 2024 (2023 - $ 73 ) under this agreement.

The Company recorded $ 56 and $ 113 of investment management fees for the three and six months ended June 30, 2024, respectively (2023:

$ 72 and $ 145 , respectively) under this agreement.

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

2 unchanged sentences

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

Renewal Rights Agreement - IIS Business

On May 3, 2024 and June 20, 2024, Maiden LF and Maiden GF entered into the AmTrust Renewal Rights Agreements with certain subsidiaries of AmTrust, which are expected to cover the majority of Maiden LF and Maiden GF's primary business written in Sweden, Norway, other Nordic countries, the United Kingdom and Ireland.

MAIDEN HOLDINGS, LTD.

5 unchanged sentences

a) Concentrations of Credit Risk

At March 31, 2024 and December 31, 2023, the Company’s assets where significant concentrations of credit risk may exist include investments, cash and cash equivalents, loan to related party, reinsurance balances receivable, reinsurance recoverable on paid and unpaid losses and funds withheld receivable.

At June 30, 2024 and December 31, 2023, the Company’s assets where significant concentrations of credit risk may exist include investments, cash and cash equivalents, loan to related party, reinsurance balances receivable, reinsurance recoverable on paid and unpaid losses and funds withheld receivable.

Please refer to " Note 8.

10 unchanged sentences

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

Best at March 31, 2024.

Best at June 30, 2024.

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

The Company believes these balances as at March 31, 2024 will be fully collectible.

The Company believes these balances as at June 30, 2024 will be fully collectible.

b) Investment Commitments and Related Financial Guarantees

The Company had total unfunded commitments on alternative investments of $ 98,384 at March 31, 2024 (December 31, 2023 - $ 100,846 ) which included commitments for other investments, private equity securities and equity method investments.

The table below shows the total unfunded commitments by type of investment as at March 31, 2024 and December 31, 2023:

March 31, 2024 December 31, 2023

The Company had total unfunded commitments on alternative investments of $ 94,532 at June 30, 2024 (December 31, 2023:

$ 100,846 ) which included commitments for other investments, private equity securities and equity method investments.

The table below shows the total unfunded commitments by type of investment as at June 30, 2024 and December 31, 2023:

June 30, 2024 December 31, 2023

Fair Value % of Total Fair Value % of Total

11 unchanged sentences

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

As discussed above, at March 31, 2024, guarantees of $ 69,733 (December 31, 2023 - $ 62,508 ) were provided to lenders by the Company on behalf of real estate joint ventures, however, the likelihood of the Company incurring any losses pertaining to project level financing guarantees was determined to be remote.

As discussed above, at June 30, 2024, guarantees of $ 69,025 (December 31, 2023:

$ 62,508 ) were provided to lenders by the Company on behalf of real estate joint ventures, however, the likelihood of the Company incurring any losses pertaining to project level financing guarantees was determined to be remote.

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

9 unchanged sentences

As the lease contracts generally do not provide an implicit discount rate, the Company used the weighted-average discount rate of 8.6 %, representing its secured incremental borrowing rate, in calculating the present value of the lease liability.

At March 31, 2024, the Company's future lease obligations of $ 167 (December 31, 2023 - $ 228 ) were calculated based on the present value of future annual rental commitments excluding taxes, insurance and other operating costs for non-cancellable operating leases discounted using its secured incremental borrowing rate.

This amount has been recognized on the Condensed Consolidated Balance Sheet as a lease liability within accrued expenses and other liabilities with an equivalent amount for the right-of-use asset presented as part of other assets .

At June 30, 2024, the Company's future lease obligations of $ 1,939 (December 31, 2023:

$ 228 ) were calculated based on the present value of future annual rental commitments excluding taxes, insurance and other operating costs for non-cancellable operating leases discounted using its secured incremental borrowing rate.

This amount has been recognized on the Condensed Consolidated Balance Sheet as a lease liability within accrued expenses and other liabilities with an initial equivalent amount for the right-of-use asset presented as part of other assets .

At June 30, 2024, the Company's right-of-use lease asset of $ 1,559 reflected certain lease incentives that were accepted which reduced the right-of-use asset and were separately capitalized under leasehold improvements to be depreciated over the effective term of the related lease agreements (December 31, 2023:

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

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

The Company's weighted-average remaining lease term is approximately 1.0 year at March 31, 2024.

The Company's weighted-average remaining lease term is approximately 9.7 years at June 30, 2024.

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

The Company's total lease expense was $ 146 for three months ended March 31, 2024 (2023 - $ 120 ) recognized in general and administrative expenses consistent with the prior accounting treatment under Topic 840.

At March 31, 2024, the scheduled maturity of the Company's operating lease liabilities are expected to be as follows:

March 31, 2024

The Company's total lease expense was $ 152 and $ 298 for three and six months ended June 30, 2024, respectively (2023:

$ 135 and $ 255 , respectively) recognized within general and administrative expenses consistent with the prior accounting treatment under Topic 840.

At June 30, 2024, the scheduled maturity of the Company's operating lease liabilities are expected to be as follows:

June 30, 2024

Thereafter 1,754

Discount for present value ( 1,179 )

Total discounted operating lease liabilities $ 1,939

The Company has contracted to lease office space in New York City commencing in April 2024, which will create a significant right-of-use asset and a lease liability once certain leasehold improvements have been completed and the operating lease has commenced.

The Company will occupy this space and capitalize the leased asset in the second quarter of 2024.

The Company has contracted to lease office space in New York City commencing in April 2024, which created a significant right-of-use asset and a lease liability once certain leasehold improvements were completed and the operating lease has commenced.

The Company has occupied this space and capitalized the leased asset in the second quarter of 2024.

d) Legal Proceedings

28 unchanged sentences

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

MAIDEN HOLDINGS, LTD.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

(in thousands of U.S.

dollars, except share and per share data)

Commitments, Contingencies and Guarantees (continued)

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

8 unchanged sentences

The Amended Complaint asserts violations of Section 10(b) of the Exchange Act and Rule 10b-5 (and Section 20(a) for control person liability) arising in large part from allegations that Maiden failed to take adequate loss reserves in connection with reinsurance provided to AmTrust.

MAIDEN HOLDINGS, LTD.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

(in thousands of U.S.

dollars, except share and per share data)

Commitments, Contingencies and Guarantees (continued)

Plaintiffs further claim that certain of Maiden Holdings’ representations concerning its business, underwriting and financial statements were rendered false by the allegedly inadequate loss reserves, that these misrepresentations inflated the price of Maiden Holdings' common stock, and that when the truth about the misrepresentations was revealed, the Company’s stock price fell, causing Plaintiffs to incur losses.

12 unchanged sentences

It is currently uncertain as to the effect of such litigation on our business, operating results and financial condition.

MAIDEN HOLDINGS, LTD.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

(in thousands of U.S.

dollars, except share and per share data)

Earnings per Common Share

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

For the Three Months Ended March 31,

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

Amount allocated to participating common shareholders (1)

Net income (loss) available (attributable) to Maiden common shareholders $ 1,442 $ ( 11,328 )

Weighted average number of common shares – basic 100,457,125 101,552,364

Dilutive share options and restricted share units (2)

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

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

2024 2023 2024 2023

Basic and diluted earnings (loss) per share available (attributable) to common shareholders $ 0.01 $ ( 0.11 )

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

Net loss attributable to Maiden common shareholders $ ( 9,971 ) $ ( 2,933 ) $ ( 8,512 ) $ ( 14,261 )

Adjusted weighted average number of common shares – basic and diluted (1)

100,159,973 101,754,218 100,308,549 101,653,848

Basic and diluted loss per share attributable to common shareholders $ ( 0.10 ) $ ( 0.03 ) $ ( 0.08 ) $ ( 0.14 )

(1) Please refer to "Note 6.

1 unchanged sentence

Share Compensation and Pension Plans" in the Notes to Consolidated Financial Statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2023 for the terms and conditions of securities that could potentially be dilutive in the future.

There were no potentially dilutive securities for the three months ended March 31, 2024 (2023 - 0 ).

The Company recognized an income tax expense of $ 11 for the three months ended March 31, 2024 compared to an income tax benefit of $ 28 for the same period in 2023.

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

There were no potentially dilutive securities for the three and six months ended June 30, 2024 (2023:

The Company recognized income tax expense of $ 442 and $ 453 for the three and six months ended June 30, 2024, respectively, compared to an income tax benefit of $ 194 and $ 222 for the same respective periods in 2023.

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

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

2 unchanged sentences

and International net deferred tax assets as more evidence is needed regarding the utilization of these losses.

At March 31, 2024, the Company has available net operating loss carry-forwards of $ 334,019 (December 31, 2023 - $ 337,420 ) for income tax purposes.

Approximately $ 182,801 (December 31, 2023 - $ 186,203 ) of the net operating loss ("NOL") carryforwards expire in various years beginning in 2029.

As of March 31, 2024, approximately $ 151,218 or 45.3 % of the Company's NOL carryforwards have no expiry date under the relevant U.S.

At March 31, 2024, the Company also has a capital loss carry-forward of $ 14,058 (December 31, 2023 - $ 13,853 ) which will expire beginning in 2024.

MAIDEN HOLDINGS, LTD.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

(in thousands of U.S.

dollars, except share and per share data)

Subsequent Events

Common Share Repurchases

Subsequent to the three months ended March 31, 2024 and through the period ended May 8, 2024, the Company repurchased 238,884 additional common shares at an average price per share of $ 2.16 under the Company's authorized common share repurchase plan pursuant to Rule 10b5-1(c)(1) under the Securities Exchange Act of 1934.

The Company's remaining share repurchase authorization was $ 70,425 at May 8, 2024.

Renewal Rights Transaction - IIS Business

On May 3, 2024, Maiden LF and Maiden GF entered into a renewal rights transaction with 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 are expected to hire a limited number of related staff to support the transfer of the business.

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

At June 30, 2024, the Company has available net operating loss carry-forwards of $ 338,166 (December 31, 2023:

$ 337,420 ) for income tax purposes.

Approximately $ 186,203 (December 31, 2023:

$ 186,203 ) of net operating loss ("NOL") carryforwards expire in various years beginning in 2029.

As of June 30, 2024, approximately $ 151,963 or 44.9 % of the Company's NOL carryforwards have no expiry date under the relevant U.S.

At June 30, 2024, the Company also has a capital loss carry-forward of $ 14,134 (December 31, 2023:

$ 13,853 ) which will start to expire in 2024.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements