What changed in this filing

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Item 2. Management’s Discussion and Analysis

2024-08-08 compared with 2024-05-09 · 487 added, 332 removed, 930 unchanged (47% of the section changed)

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

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.

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.

On June 20, 2024, Maiden LF and Maiden GF entered into an additional 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 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.

As part of these conclusions, Maiden LF and Maiden GF are no longer writing new business and 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 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"), both of which are in run-off effective as of 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, both of which are in run-off effective as of January 1, 2019.

Please refer to " 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 on March 12, 2024 for further information on recent developments within the Company.

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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;

assets we hold and maintaining required regulatory capital at very strong levels to manage our aggregate risk profile;

• 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.

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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.

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.

As of June 30, 2024 , we have invested approximately $336.8 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.

As noted, we are actively exploring fee-based and distribution opportunities which are non-risk bearing and capital efficient.

As these strategic plans continue to develop, we may modify our approach to this aspect of our current strategy, including possibly reducing our investments and commitments to alternative investments.

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.

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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.

"Financial Statements" of this Quarterly Report on Form 10-Q for further information on the recent repurchases made by Maiden Reinsurance during the three and six months ended June 30, 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.

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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.

At June 30, 2024, GLS and its subsidiaries have total insurance related liabilities of $23.9 million which consisted of total loss reserves of $17.6 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.

During the six months ended June 30, 2024, our book value decreased by 4.0% to $2.38 per common share at June 30, 2024, and our non-GAAP book value decreased by 0.6% to $3.17 per common share at June 30, 2024.

We made additional progress in the capital management pillar of our business strategy, repurchasing 747,561 and 1,099,672 common shares during the three and six months ended June 30, 2024, respectively.

During the six months ended June 30, 2024, our alternative investment portfolio increased by 9.0% and produced a positive net return of 4.6% on that portfolio during the six months ended June 30, 2024 compared to 3.7% for the same period in 2023.

The annualized return is now above our average cost of capital despite numerous investments that continue to be carried at cost or net asset values that have yet to realize positive returns due to 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.

The run-off of our historic reinsurance programs produced an underwriting loss of $9.8 million and $17.3 million for the three and six months ended June 30, 2024, respectively.

Much of this was driven by adverse prior year reserve development of $6.8 million and $13.4 million for three and six months ended June 30, 2024, respectively, which offset the positive progress made in our capital and asset management strategies.

Approximately $5.6 million or 83.1% and $10.6 million or 79.7% of the total adverse prior year reserve development for the three and six months ended June 30, 2024, respectively, is recoverable under the LPT/ADC Agreement and is expected to be recognized as future GAAP income over time as recoveries are received,

including recoveries on Workers Compensation paid commuted amounts, under the provisions of the LPT/ADC Agreement and the applicable GAAP accounting rules.

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 $334.0 million at March 31, 2024.

Approximately $186.2 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.

As of June 30, 2024, $152.0 million or 44.9% 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 $117.3 million or $1.17 per common share at March 31, 2024.

DTA (before valuation allowance) of $119.2 million or $1.19 per common share at June 30, 2024.

DTA of $119.2 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.

more evidence is needed regarding the utilization of these losses.

DTA as 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 Months Ended March 31, 2024 and 2023 Financial Highlights

For the Three Months Ended March 31, 2024 2023 Change

Three and Six Months Ended June 30, 2024 and 2023 Financial Highlights

For the Three Months Ended June 30, 2024 2023 Change

Summary Consolidated Statement of Income Data (unaudited):

($ in thousands except per share data)

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)

Net loss $ (9,971) $ (2,933) $ (7,038)

Basic and diluted loss per common share:

Net loss attributable to common shareholders (2)

(0.10) (0.03) (0.07)

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Non-GAAP measures:

Non-GAAP operating (loss) earnings (1)

(10,604) 4,467 (15,071)

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

(0.11) 0.04 (0.15)

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

(13.3) % 5.6 % (18.9)

For the Six Months Ended June 30, 2024 2023 Change

Summary Consolidated Statement of Income Data (unaudited):

($ in thousands except per share data)

$ (8,512) $ (14,261) $ 5,749

Basic and diluted loss per common share:

Net loss attributable to Maiden common shareholders (2)

(0.08) (0.14) 0.06

Gross premiums written 16,772 7,711 9,061

Net premiums earned 24,485 20,041 4,444

Underwriting loss (3)

(17,289) (17,515) 226

Net investment results (13)

26,929 26,965 (36)

Non-GAAP measures:

Non-GAAP operating loss (1)

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(9.8) % (2.1) % (7.7)

March 31, 2024 December 31, 2023 Change

June 30, 2024 December 31, 2023 Change

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

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45.3 % 45.0 % 0.3

(1) Non-GAAP operating loss, non-GAAP operating loss per common share, and annualized non-GAAP operating return on average common shareholders' equity are non-GAAP financial measures.

(1) Non-GAAP operating earnings (loss), non-GAAP operating earnings (loss) per common share, and annualized non-GAAP operating return on average common shareholders' equity are non-GAAP financial measures.

See " Key Financial Measures " for additional information.

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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 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.

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 six months ended June 30, 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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Results of Operations

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,

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

($ in thousands) 2024 2023 2024 2023

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

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

Other insurance revenue, net — 78 46 19

Net loss and LAE

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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

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

Foreign exchange and other (losses) gains

— (2,621) 2,053 (5,437)

Interest and amortization expenses (4,816) (4,773) (9,631) (8,597)

Income tax (expense) benefit

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

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

(442) 194 (453) 222

Interest in income of equity method investments 1,463 4,803 2,069 4,752

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

(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 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 loss for the three months ended June 30, 2024 was $10.0 million compared to net loss of $2.9 million for the same respective period in 2023.

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

• an underwriting loss of $9.8 million for the three months ended June 30, 2024 compared to an underwriting loss of $9.3 million in the same period in 2023 largely due to:

• adverse prior year loss development ("PPD") of $6.8 million in the second quarter of 2024 compared to adverse PPD of $4.5 million during the same period in 2023, detailed as follows;

• Our AmTrust Reinsurance segment had adverse PPD of $5.2 million in the second quarter of 2024 compared to adverse PPD of $3.2 million for the second quarter of 2023.

Of the total adverse PPD experienced in this segment for the second quarter of 2024, $5.6 million is recoverable under the LPT/ADC Agreement and will be recognized as future GAAP income over time as recoveries are received under provisions of the LPT/ADC Agreement and the applicable GAAP accounting rules.

• Our Diversified Reinsurance segment had adverse PPD of $1.6 million in the second quarter of 2024 compared to adverse PPD of $1.3 million for the second quarter of 2023.

• On a current accident year basis, underwriting loss was $3.0 million for the three months ended June 30, 2024 compared to an underwriting loss of $4.8 million for the same period in 2023.

• lower total income from investment activities of $9.9 million for the three months ended June 30, 2024 compared to $16.5 million for the same period in 2023 which was comprised of:

• net investment income decreased to $7.0 million for the three months ended June 30, 2024 compared to $10.5 million for the same period in 2023;

• realized and unrealized investment gains increased to $1.5 million for the three months ended June 30, 2024 compared to investment gains of $1.1 million for the same period in 2023;

• interest in income of equity method investments of $1.5 million for the three months ended June 30, 2024 compared to an interest in income of $4.8 million for the same period in 2023.

• corporate general and administrative expenses increased to $4.8 million for the three months ended June 30, 2024 compared to $2.9 million for the same period in 2023;

and partly offset by:

• nominal foreign exchange and other gains for the three months ended June 30, 2024, compared to foreign exchange and other losses of $2.6 million for the same period in 2023.

Net loss for the six months ended June 30, 2024 was $8.5 million compared to net loss of $14.3 million for the same period in 2023.

The net increase in our financial results for the six months ended June 30, 2024 compared to 2023 was largely due to:

• underwriting loss of $17.3 million in the six months ended June 30, 2024 compared to an underwriting loss of $17.5 million for the same period in 2023 largely due to:

• adverse PPD of $13.4 million for the six months ended June 30, 2024 compared to adverse PPD of $8.2 million for the same period in 2023 detailed as follows:

• Our AmTrust Reinsurance segment had adverse PPD of $12.5 million in 2024, compared to adverse PPD of $6.1 million in 2023.

Of the total adverse PPD experienced in this segment for 2024, $10.6 million is recoverable under the LPT/ADC Agreement and is expected to be recognized as future GAAP income over time as recoveries are received under provisions of the LPT/ADC Agreement and the applicable GAAP accounting rules.

• Our Diversified Reinsurance segment had adverse PPD of $0.9 million in 2024, compared to adverse PPD of $2.1 million for the same period in 2023.

• on a current accident year basis, an underwriting loss of $3.9 million for the six months ended June 30, 2024 compared to an underwriting loss of $9.4 million for the same period in 2023, primarily due to results in AmTrust Reinsurance segment as discussed further below in the segment analysis.

• total income from investment activities was $26.9 million for the six months ended June 30, 2024 compared to $27.0 million in 2023 which was comprised of:

• net investment income decreased to $14.7 million for the six months ended June 30, 2024 compared to $20.1 million that was earned for the same period in 2023;

• net realized and unrealized investment gains of $10.2 million for the six months ended June 30, 2024 compared to net investment gains of $2.2 million for the same period in 2023;

• interest in income of equity method investments of $2.1 million for the six months ended June 30, 2024 compared to an interest in income of equity method investments of $4.8 million for the same period in 2023.

• corporate general and administrative expenses increased to $10.1 million for the six months ended June 30, 2024 compared to $9.9 million for the same period in 2023;

and partly offset by:

• foreign exchange and other gains of $2.1 million for the six months ended June 30, 2024 compared to foreign exchange and other losses of $5.4 million earned for the same period in 2023.

Net Premiums Written

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

The tables below compare net premiums written by our reportable segments, reconciled to the total consolidated net premiums written for the three and six months ended June 30, 2024 and 2023:

For the Three Months Ended June 30, 2024 2023 Change in

($ in thousands) Total Total $ %

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Total $ 8,339 $ 6,875 $ 1,464 21.3 %

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.

For the Six Months Ended June 30, 2024 2023 Change in

($ in thousands) Total Total $ %

Diversified Reinsurance

$ 17,202 $ 13,425 $ 3,777 28.1 %

AmTrust Reinsurance (549) (5,790) 5,241 (90.5) %

Total $ 16,653 $ 7,635 $ 9,018 118.1 %

Net premiums written for the three and six months ended June 30, 2024 increased to $8.3 million and $16.7 million, respectively, compared to net premiums written of $6.9 million and $7.6 million for the same respective periods in 2023:

• Premiums written in the Diversified Reinsurance segment increased by $1.7 million and $3.8 million for the three and six months ended June 30, 2024 compared to the same respective periods 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 decreased by $0.3 million and increased by $5.2 million for the three and six months ended June 30, 2024 compared to the same respective periods in 2023.

The negative written

premiums in the prior year six month period reflect cession adjustments of $6.1 million due to the cancellation of cases in one specific program within Specialty Risk and Extended Warranty.

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 $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

Net premiums earned increased by $1.0 million and $4.4 million for the three and six months ended June 30, 2024, respectively, compared to the same respective periods in 2023 due to higher earned premiums in our Diversified Reinsurance segment driven by growth in Credit Life programs written by Maiden LF and Maiden GF.

The tables below compare net premiums earned by our reportable segments, reconciled to the total consolidated net premiums earned, for the three and six months ended June 30, 2024 and 2023:

For the Three Months Ended June 30, 2024 2023 Change in

($ in thousands) Total Total $ %

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$ 12,077 $ 11,039 $ 1,038 9.4 %

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.

For the Six Months Ended June 30, 2024 2023 Change in

($ in thousands) Total Total $ %

Diversified Reinsurance

$ 17,220 $ 14,675 $ 2,545 17.3 %

AmTrust Quota Share Reinsurance

7,265 5,366 1,899 35.4 %

$ 24,485 $ 20,041 $ 4,444 22.2 %

Net premiums earned in the Diversified Reinsurance segment for the three and six months ended June 30, 2024 increased by $1.0 million or 14.2% and $2.5 million or 17.3%, respectively, compared to the same respective periods 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 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.

Net premiums earned in the AmTrust Reinsurance segment for the three and six months ended June 30, 2024 increased by $13.0 thousand or 0.3% and $1.9 million or 35.4%, respectively, compared to the same respective periods in 2023 primarily due to negative earned premium adjustments made during the first quarter of 2023.

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

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Net Investment Income

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;

Net investment income decreased by $3.6 million or 33.9% and $5.4 million or 27.0% for the three and six months ended June 30, 2024, respectively, compared to the same respective periods in 2023 largely due to lower interest income earned on our funds withheld balance with AmTrust as claim payments continued to be settled through the funds held receivable.

Annualized average book yields increased to 4.8% and 4.7% for the three and six months ended June 30, 2024, respectively, compared to 4.2% and 4.0% for the same respective periods in 2023 due to the following factors:

• Floating rate investments comprise 50.5% of our fixed income investments as of June 30, 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 and six months ended June 30, 2024, respectively, compared to 7.0% and 6.7% for the same respective periods 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,

• Interest income on our funds withheld receivable decreased by $2.7 million and $5.2 million for the three and six months ended June 30, 2024, respectively, compared to the same respective periods in 2023.

This was the result of a lower average funds withheld balance with AmTrust of $69.1 million in the first half of 2024 compared to $351.8 million for the first half of 2023.

Funds withheld receivable from AmTrust earned an annual interest rate of 3.5% for both the three and six months ended June 30, 2024 and 2023, respectively.

Average aggregate fixed income assets for the three and six months ended June 30, 2024 decreased by 41.2% and 39.8%, respectively, compared to the same respective periods for June 30, 2023 due to continued run-off of our reinsurance liabilities previously written on prospective risks primarily through the funds withheld receivable.

For the three and six months ended June 30, 2024, we experienced negative operating cash flows due to settlement of claim payments to AmTrust 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 and six months ended June 30, 2024 and 2023:

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

($ in thousands) 2024 2023 2024 2023

5 unchanged sentences

GAAP consolidated financial statements.

Net Realized and Unrealized Investment Gains (Losses)

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,

Net Realized and Unrealized Investment Gains

Net realized and unrealized investment gains of $1.5 million and $10.2 million were recognized for the three and six months ended June 30, 2024, respectively, compared to net realized and unrealized investment gains of $1.1 million and $2.2 million for the same respective periods in 2023.

Total net realized and unrealized investment gains for the three and six months ended June 30, 2024 and 2023 are summarized in the table below by investment category:

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

($ in thousands) 2024 2023 2024 2023

1 unchanged sentence

Fixed income assets (1)

$ (77) $ (786) $ (295) $ (786)

Other investments, including equity securities — 10 — 186

Total net realized (losses) gains (218) 176

Total net realized losses (77) (776) (295) (600)

Net unrealized gains:

3 unchanged sentences

(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

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,

Total net realized and unrealized investment gains increased by $0.3 million and $8.1 million for the three and six months ended June 30, 2024, respectively, compared to the same respective periods in 2023 primarily due to unrealized gains in the private equity asset class of $8.1 million during the current year period.

Interest in Income of Equity Method Investments

Total interest in income of equity method investments of $1.5 million and $2.1 million were recognized for the three and six months ended June 30, 2024, respectively, compared to an interest in the income of equity method investments of $4.8 million and $4.8 million for the same respective periods in 2023.

Equity method investments consist of real estate investments of $54.3 million and other investments of $29.4 million as of June 30, 2024.

Interest in income of equity method investments for the three and six months ended June 30, 2024 and 2023 is detailed by investment category in the following table:

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

($ in thousands) 2024 2023 2024 2023

Hedge fund investments $ — $ 167

Real estate investments 353 (218)

Other investments $ 1,599 $ 5,072 $ 1,852 $ 5,072

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

Real estate investments (136) (185) 217 (403)

Hedge fund investments — (84) — 83

Interest in income of equity method investments $ 1,463 $ 4,803 $ 2,069 $ 4,752

Net Loss and LAE

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.

Net loss and LAE increased by $2.4 million for the second quarter of 2024 compared to the same period in 2023.

Net losses were impacted by net adverse PPD of $6.8 million for the second quarter of 2024 compared to net adverse PPD of $4.5 million for the same period in 2023.

Excluding adverse development, the current year losses were $7.2 million for the second quarter of 2024 compared to $7.0 million for the second quarter of 2023.

Net loss and LAE increased by $4.2 million or 19.9% during the six months ended June 30, 2024 compared to the same respective period in 2023 driven by higher net adverse PPD experienced in the AmTrust Reinsurance Segment.

Net loss and LAE was impacted by net adverse PPD of $13.4 million in 2024 compared to net adverse PPD of $8.2 million during 2023.

Of the total adverse development in the AmTrust Reinsurance segment experienced to date in 2024, $10.6 million is recoverable under the LPT/ADC Agreement and is expected to be recognized as future GAAP income over time as recoveries are received under the provisions of the LPT/ADC Agreement and the applicable GAAP accounting rules.

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 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.

Commission and other acquisition expenses decreased by $0.1 million or 2.7% and increased by $1.2 million or 13.4% for the three and six months ended June 30, 2024, respectively, compared to the same respective periods in 2023.

The year-to-date movement was primarily due to lower earned premium adjustments in the AmTrust Reinsurance segment as negative premium adjustments in the first quarter of 2023 resulted in lower commission costs and brokerage fees.

Total acquisition expenses decreased as a percentage of net premiums earned for both respective periods due to lower profit commissions incurred based on loss experience of certain programs.

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

1 unchanged sentence

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 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,

Total general and administrative expenses increased by $1.0 million or 15.2% and decreased by $1.0 million or 5.9% for the three and six months ended June 30, 2024, respectively, compared to the same respective periods in 2023.

The year-to-date decline was mainly driven by lower incentive compensation costs relative to 2023.

Corporate expenses increased by $1.9 million and $0.2 million or the three and six months ended June 30, 2024 largely due to higher professional, audit and legal fees.

Total general and administrative expenses included lower stock-based awards which were $0.9 million for the six months ended June 30, 2024 compared to $1.1 million for the same period in 2023.

General and administrative expenses for the three and six months ended June 30, 2024 and 2023 were comprised of:

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

($ in thousands) 2024 2023 2024 2023

2 unchanged sentences

General and administrative expenses – corporate

4,821 2,937 10,121 9,899

Total general and administrative expenses

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

Excluding expenses related to the Company’s IIS business, which is no longer writing new business and has entered into the AmTrust Renewal Rights Agreements, total general and administrative expenses increased 22.4% to $6.5 million and decreased 4.7% to $13.3 million for the three and six months ended June 30, 2024, respectively, compared to $5.3 million and $13.9 million for the same respective periods in 2023 primarily due to higher professional, audit and legal fees for the quarter-to-date period and lower incentive compensation costs for the year-to-date period.

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 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.

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 $9.6 million for the three and six months ended June 30, 2024, respectively, compared to $4.8 million and $8.6 million for the same respective periods in 2023.

This included interest expense incurred on the Senior Notes for the three and six months ended June 30, 2024 and 2023 of $4.8 million and $9.6 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 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.

Due to a change in the amortization method for the 2013 Senior Notes in the prior year period, amortization expenses were $39.0 thousand and $0.1 million for the three and six months ended June 30, 2024, respectively, compared to amortization expense of $37.0 thousand and income of $0.9 million for the same respective periods in 2023.

During the three and six months ended June 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 discussed above.

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 months ended March 31, 2024 and 2023, respectively.

The weighted average effective interest rate for the Senior Notes was 7.6% for the three and six months ended June 30, 2024 and 2023, respectively.

Foreign Exchange and Other Gains (Losses)

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.

Net foreign exchange and other gains of $2.1 million were realized during the six months ended June 30, 2024 compared to net foreign exchange and other losses of $2.6 million and $5.4 million for the same respective periods in 2023.

For the six months ended June 30, 2024, net foreign exchange gains of $2.1 million were 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.

Net foreign exchange losses of $2.6 million and $4.7 million for the three and six months ended June 30, 2023 respectively, 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.

Foreign currency fluctuations are 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 June 30, 2024 included net loss reserves of $262.2 million.

Our foreign currency asset exposures at June 30, 2024 included $151.3 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, $29.3 million of equity method real estate investments denominated in Canadian dollars, as well as $14.5 million of funds withheld receivable.

Underwriting Results by Reportable Segment

Diversified Reinsurance Segment

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,

The underwriting results for our Diversified Reinsurance segment for the three and six months ended June 30, 2024 and 2023 were as follows:

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

($ in thousands) 2024 2023 2024 2023

5 unchanged sentences

$ 8,229 $ 7,204 $ 17,220 $ 14,675

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

Other insurance revenue, net — 78 46 19

Net loss and LAE

6 unchanged sentences

$ (2,777) $ (3,118) $ (3,049) $ (5,107)

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,

Underwriting loss by business unit is detailed in the table below for the Diversified 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,

($ in thousands) 2024 2023 2024 2023

3 unchanged sentences

Underwriting loss $ (2,777) $ (3,118) $ (3,049) $ (5,107)

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

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 six months ended June 30, 2024.

As discussed in the "Overview" section, Maiden LF and Maiden GF are no longer writing new business and have entered into the AmTrust Renewal Rights Transactions 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.

As a result, Maiden LF and Maiden GF should begin to experience declines in premium written during the second half of 2024.

Gross premiums written increased by $1.8 million or 27.7% and $3.8 million, or 28.3% for the three and six months ended June 30, 2024, respectively, compared to the same respective periods in 2023.

Net premiums written increased by $1.7 million or 26.0% and $3.8 million or 28.1% during the three and six months ended June 30, 2024, respectively, compared to the same respective periods in 2023.

Net premiums earned increased by $1.0 million or 14.2% and $2.5 million or 17.3% during the three and six months ended June 30, 2024, respectively, compared to the same respective periods in 2023.

Other insurance revenue, net — Other insurance 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.

The tables below show other insurance revenue by source for the three and six months ended June 30, 2024 and 2023:

For the Three Months Ended June 30, 2024 2023 Change

($ in thousands)

Changes in fair value of non-hedged underwriting-related derivatives $ — $ (18) $ 18

Other service fee income — 96 (96)

Other insurance revenue, net $ — $ 78 $ (78)

For the Six Months Ended June 30, 2024 2023 Change

($ in thousands)

International $ — $ 97 $ (97)

1 unchanged sentence

Other service fee income 46 152 (106)

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.

Total other insurance revenue, net $ 46 $ 19 $ 27

Net Loss and LAE — Net loss and LAE increased by $1.5 million and $1.3 million for the three and six months ended June 30, 2024, respectively, compared to the same respective periods in 2023 primarily due to adverse prior year loss development in International and other runoff business lines.

The net loss and LAE was impacted by net adverse PPD of $1.6 million and $0.9 million for the three and six months ended June 30, 2024, respectively, compared to adverse PPD of $1.3 million and $2.1 million for the same respective periods in 2023.

The net adverse PPD for the three months ended June 30, 2024 was primarily from International and other runoff business lines.

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

The net adverse development for the three and six months ended June 30, 2023 was primarily from an Australian Warranty program and a German Auto program in run-off from our International unit along with development from other runoff business lines and included the recognition of expected credit losses on reinsurance recoverable on unpaid losses.

Commission and Other Acquisition Expenses — Commission and other acquisition expenses decreased by $0.2 million or 6.3% and increased by $0.4 million or 5.8% for the three and six months ended June 30, 2024, respectively, compared to the same respective periods in 2023.

The year-to-date movement was due to growth in new Credit Life programs written by Maiden LF and GF.

Total acquisition costs as a percentage of net premiums earned decreased for both respective periods due to lower profit commissions incurred as a result of recent loss experience on certain programs.

General and Administrative Expenses — General and administrative expenses decreased by $0.7 million or 22.9% and $1.2 million or 21.2% for the three and six months ended June 30, 2024, respectively, compared to the same respective periods in 2023 largely due to lower staff incentive compensation.

AmTrust Reinsurance Segment

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,

The AmTrust Reinsurance segment reported an underwriting loss of $7.0 million and $14.2 million during the three and six months ended June 30, 2024, respectively, compared to an underwriting loss of $6.1 million and $12.4 million for the same respective periods in 2023.

The underwriting results for the AmTrust Reinsurance segment for the three and six months ended June 30, 2024 and 2023 were as follows:

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

($ in thousands) 2024 2023 2024 2023

10 unchanged sentences

General and administrative expenses

(700) (844) (1,370) (1,401)

Underwriting loss $ (6,988) $ (6,144) $ (14,240) $ (12,408)

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

Premiums — The tables below show net premiums written by category for the three and six months ended June 30, 2024 and 2023:

For the Three Months Ended June 30, 2024 2023 Change in

($ in thousands) Total Total $

3 unchanged sentences

Specialty Program

Specialty Risk and Extended Warranty

Total AmTrust Reinsurance

$ (44) $ 223 $ (267)

For the Six Months Ended June 30, 2024 2023 Change in

($ in thousands) Total Total $

Net Premiums Written

Small Commercial Business

$ (547) $ (158) $ (389)

Specialty Program

(45) 157 (202)

Specialty Risk and Extended Warranty

2 unchanged sentences

$ (549) $ (5,790) $ 5,241

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

The negative premiums for the six months ended June 30, 2024 and June 30, 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 six months ended June 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.

Net premiums earned increased by $13.0 thousand and $1.9 million for the three and six months ended June 30, 2024, respectively, compared to the same respective periods in 2023 due to lower negative premium adjustments during the first half of 2024.

The tables below provide detail on net premiums earned in the three and six months ended June 30, 2024 and 2023:

For the Three Months Ended June 30, 2024 2023 Change in

($ in thousands) Total Total $

3 unchanged sentences

Specialty Program

Specialty Risk and Extended Warranty

3,933 3,909 24

Total AmTrust Reinsurance

$ 3,848 $ 3,835 $ 13

For the Six Months Ended June 30, 2024 2023 Change in

($ in thousands) Total Total $

Net Premiums Earned

Small Commercial Business

$ (547) $ (158) $ (389)

Specialty Program

(45) 157 (202)

Specialty Risk and Extended Warranty

2 unchanged sentences

$ 7,265 $ 5,366 $ 1,899

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,

Net Loss and LAE — Net loss and LAE increased by $0.9 million and $3.0 million for the three and six months ended June 30, 2024, respectively, compared to the same respective periods in 2023.

The movement was driven by higher adverse PPD under the AmTrust Quota Share for the three and six months ended June 30, 2024 and the European Hospital Liability Quota Share for the six months ended June 30, 2024.

Net adverse PPD was $5.2 million and $12.5 million during the three and six months ended June 30, 2024, respectively, compared to net adverse development of $3.2 million and $6.1 million for the same respective periods in 2023, incurred primarily within the AmTrust Quota Share and European Hospital Liability Quota Share.

The table below shows PPD 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) ($ in thousands)

2 unchanged sentences

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

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

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.

Total AmTrust Prior Year Development $ 5,243 $ 3,177 $ 12,461 $ 6,076

Net adverse PPD for the three and six months ended June 30, 2024 was primarily due to the AmTrust Quota Share contract, with European Hospital Liability also producing significant 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;

Program business experienced continuing adverse development from construction defect coverage for accident years 2015 to 2018 as new claims emergence reported by AmTrust 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.

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 prior to 2014, resulting in strengthening of loss development tail on underwriting years 2011 to 2014.

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

As of June 30, 2024, the reinsurance recoverable on unpaid losses under the LPT/ADC Agreement was $523.0 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 $78.2 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.

At June 30, 2024, there was $76.8 million remaining in available coverage under the LPT/ADC Agreement.

For the three and six months ended June 30, 2024, $5.6 million and $10.6 million (2023:

$10.7 million and $12.3 million) of total adverse PPD from the AmTrust Quota Share reported in the table above, respectively, are 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.

To the extent recent 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 $0.1 million and $0.8 million for the three and six months ended June 30, 2024, respectively, compared to the same respective periods in 2023 driven by lower earned premium adjustments in the AmTrust Reinsurance segment as negative premium adjustments in the first quarter of 2023 resulted in lower commission costs and brokerage fees, partially offset by higher earned premiums in Specialty Risk and Extended Warranty programs.

Total acquisition costs increased as a percentage of net premiums earned for both respective periods due to the amortization of deferred acquisition costs upon the recognition of a premium deficiency of $0.1 million in the AmTrust Reinsurance segment for the three and six months ended June 30, 2024.

General and Administrative Expenses — General and administrative expenses decreased by $0.1 million and $31.0 thousand for the three and six months ended June 30, 2024, respectively, compared to the same respective periods 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 March 31, 2024, the Company had investable assets of $861.7 million compared to $914.3 million as of December 31, 2023.

As of June 30, 2024, the Company had investable assets of $794.2 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 $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.

Our investable assets decreased by $120.1 million during the six months ended June 30, 2024 due to the continued run-off of our reinsurance portfolio liabilities as claim payments were settled from the funds withheld receivable, which decreased by $111.4 million in the six months ended June 30, 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.

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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.

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.

During the six months ended June 30, 2024, Maiden Reinsurance paid dividends of $12.5 million to Maiden NA (2023:

$12.5 million).

During the six months ended June 30, 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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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.

During the six months ended June 30, 2024, we experienced negative operating cash flows as we run off the AmTrust Reinsurance segment reserves as shown in the cash flows table further below.

We currently expect a trend of positive investing cash flows through 2024, and 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.

Claim payments will be principally from the run-off of existing reserves for loss and LAE.

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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 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.

At June 30, 2024, unrestricted cash, cash equivalents and fixed maturity investments were $52.3 million compared to $73.4 million held at December 31, 2023, a decrease of $21.1 million during the six months ended June 30, 2024.

This was primarily driven by $9.6 million for interest payments on the Senior Notes, $16.1 million of net purchases for alternative investments including equity method investments, $2.5 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 $15.9 million, partly offset by $15.3 million of collateral released by AmTrust through the funds withheld receivable during the six months ended June 30, 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 three months ended March 31, 2024 and 2023:

For the Three Months Ended March 31, 2024 2023

The table below summarizes our operating, investing and financing cash flows for the six months ended June 30, 2024 and 2023:

For the Six Months Ended June 30, 2024 2023

($ in thousands)

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$ (5,356) $ (19,162)

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.

Cash Flows used in Operating Activities

Cash flows used in operating activities for the six months ended June 30, 2024 was $15.3 million compared to cash flows used in operating activities of $63.7 million for the six months ended June 30, 2023.

Operating cash flows were driven by funds withheld receivable which was primarily used for settlement of claim payments to AmTrust in the six months ended June 30, 2024 and 2023.

Cash Flows provided by Investing Activities

Cash flows provided by investing activities consist primarily of proceeds from sales and maturities of investments net of purchases.

Net cash provided by investing activities was $12.7 million for the six months ended June 30, 2024 compared to net cash provided by investing activities of $45.2 million for the same period in 2023.

For the six months ended June 30, 2024, the proceeds from the sales, maturities and calls exceeded the purchases of fixed maturity securities by $29.1 million compared to net proceeds of $34.2 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 provided by investing activities for six months ended June 30, 2024 also included purchases of alternative investments which exceeded proceeds from the sales and redemptions.

There were net purchases of $16.1 million for alternative investments including equity method investments during the six months ended June 30, 2024 compared to net proceeds from the sale and redemption of alternative investments of $11.0 million for the same period in 2023.

Cash Flows used in Financing Activities

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.

Cash flows used in financing activities were $2.5 million for the six months ended June 30, 2024 compared to $0.9 million for the same period in 2023.

During the six months ended June 30, 2024, the Company repurchased 1,099,672 common shares at an average price of $2.06 per share for $2.3 million used under the Company's authorized common share repurchase plan.

No dividends on common shares were paid during the six months ended June 30, 2024 and 2023.

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

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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.

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.

At June 30, 2024 and December 31, 2023, restricted cash and cash equivalents and fixed maturity investments used as collateral were $204.5 million and $219.9 million, respectively.

This collateral represents 79.6% and 75.0% of the fair value of total fixed maturity investments, cash, restricted cash and cash equivalents at June 30, 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, our fixed income investment portfolio is invested in liquid, investment-grade fixed maturity securities which are all designated as AFS at March 31, 2024.

Accordingly, our fixed income investment portfolio is invested in liquid, investment-grade fixed maturity securities which are all designated as AFS at June 30, 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.

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

March 31, 2024 December 31, 2023

As of June 30, 2024 and December 31, 2023, our cash and investments consisted of:

June 30, 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 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 presently 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.

However, as our strategic plans continue to develop, we may modify our approach to this investment policy, including possibly reducing our investments and commitments to alternative investments under this policy.

For further details on our alternative investments, in addition to the discussion of the investments herein, please see " Notes to Condensed Consolidated Financial Statements (unaudited) Note 4(b).

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

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.

As of June 30, 2024, Maiden Reinsurance owns 30.6% 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.

Treasury shares include 43,978,595 common shares owned by Maiden Reinsurance consisting of 41,439,348 shares issued as part of the Exchange in 2022 and 2,539,247 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 $90.6 million at June 30, 2024.

Cash & Cash Equivalents

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

At June 30, 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 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)

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 June 30, 2024 and December 31, 2023:

June 30, 2024 Original or Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Average yield (1)

Average duration (2)

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(2) Average duration in years.

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

During the six months ended June 30, 2024, the yield on the 10-year U.S.

Treasury bond increased by 48 basis points to 4.36%.

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

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.

Despite the increase in risk-free rates during the six months ended June 30, 2024, the change in the market values of our fixed maturity investment portfolio generated net unrealized gains of $1.5 million which increased our book value per common share by $0.02 during the period, largely the result of tightening spreads on collateralized loan obligations.

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

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.

Recent data suggest that delays in the anticipated moderation of global monetary policy may be ending in the near-term.

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

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.

As of June 30, 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 $4.5 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 March 31, 2024 and December 31, 2023, these respective durations in years were as follows:

March 31, 2024 December 31, 2023

At June 30, 2024 and December 31, 2023, these respective durations in years were as follows:

June 30, 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 2.9 1.6

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.

During the six months ended June 30, 2024, the weighted average duration of our fixed maturity investment portfolio remained at 1.2 years while the duration for the gross reserve for loss and LAE increased by 0.2 years to 6.0 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 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.

At June 30, 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 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

At June 30, 2024 and December 31, 2023, 50.5% and 40.8%, respectively, of our fixed income investments were comprised of floating rate securities which are detailed in the table below:

June 30, 2024 December 31, 2023

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

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

At June 30, 2024 and December 31, 2023, 100.0% of the Company’s U.S.

agency bond holdings are mortgage-backed.

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

agency MBS comprise 11.4% of our fixed maturity investment portfolio at June 30, 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 March 31, 2024 and December 31, 2023 were as follows:

March 31, 2024 December 31, 2023

Agency MBS holdings at June 30, 2024 and December 31, 2023 were as follows:

June 30, 2024 December 31, 2023

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

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Agency MBS $ 24,918 100.0 % $ 26,651 100.0 %

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

At June 30, 2024 and December 31, 2023, 97.7% 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 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

The security holdings by sector and financial strength rating of our corporate bond holdings at June 30, 2024 and December 31, 2023 were as follows:

June 30, 2024 AAA A+, A, A- BBB+, BBB, BBB- BB+ or lower Fair Value % of Corporate bonds portfolio

Corporate bonds

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(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 March 31, 2024.

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 June 30, 2024.

The Company's ten largest corporate holdings are 100.0% euro denominated, with 55.1% in the Consumer Sector and 29.3% in the Financial Institutions sector.

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

June 30, 2024 Fair Value % of Holdings Rating (1)

($ in thousands)

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Utah Acquisition Sub Inc., 2.25%, Due 11/22/2024 5,319 2.4 % BBB-

FBD Insurance PLC, 5.0%, Due 10/9/2028 5,314 2.1 % NA

PPG Industries Inc., 0.875%, Due 11/3/2025 5,159 2.3 % BBB+

FBD Insurance PLC, 5.0%, Due 10/9/2028 5,008 2.3 % NA

Kellanova, 1.25%, Due 3/10/2025 4,212 1.9 % BBB

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

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

At June 30, 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-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 net decrease in non-USD denominated fixed maturities is largely due to sales and maturities of euro denominated corporate bonds during the six months ended June 30, 2024.

At June 30, 2024 and December 31, 2023, the Company's non-U.S.

government issuers have a rating of AA- 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.

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 currencies at June 30, 2024 and December 31, 2023, respectively.

At June 30, 2024 and December 31, 2023, we held the following non-U.S.

dollar denominated securities:

March 31, 2024 December 31, 2023

June 30, 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 March 31, 2024 and December 31, 2023:

March 31, 2024 December 31, 2023

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 June 30, 2024 and December 31, 2023:

June 30, 2024 December 31, 2023

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

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

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

March 31, 2024 December 31, 2023

Our alternative investments as of June 30, 2024 and December 31, 2023 consisted of the following asset categories:

June 30, 2024 December 31, 2023

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

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Privately held preferred stocks 9,946 3.0 % 9,946 3.2 %

Publicly traded equity investments 82 — % 81 — %

Publicly traded equity investments in common stocks 83 — % 81 — %

Total equity securities $ 44,388 13.2 % $ 45,299 14.6 %

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Private equity funds $ 56,431 16.8 % $ 47,383 15.4 %

Private credit funds 29,220 8.9 % 27,806 9.0 %

Private credit investments 29,806 8.8 % 27,806 9.0 %

Privately held equity investments 44,740 13.3 % 38,617 12.5 %

Investment in direct lending funds (at cost) 72,643 22.2 % 69,005 22.3 %

Investments in direct lending entities (at cost) 77,618 23.0 % 69,005 22.3 %

Total other investments $ 208,595 61.9 % $ 182,811 59.2 %

Total alternative investments $ 336,777 100.0 % $ 309,039 100.0 %

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.

Our allocation to alternative investments increased to 56.7% of our total cash and investments as of June 30, 2024 compared to 51.3% as of December 31, 2023;

and increased to 141.5% of our total shareholders' equity as of June 30, 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:

March 31, 2024 December 31, 2023

June 30, 2024 December 31, 2023

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

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• 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.

As of June 30, 2024, $26.8 million or 27.9% of investments in the private equity asset class consisted of investments in private equity funds and $69.1 million or 72.1% 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.

As of June 30, 2024, $52.4 million or 93.5% of investments in the private credit asset class consisted of investments in private credit funds and $3.6 million or 6.5% 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.

As of June 30, 2024, $100.5 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 $77.6 million represents 76.1% 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.

"Financial Information" in this Quarterly Report on Form 10-Q for the six months ended June 30, 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.

As of June 30, 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 June 30, 2024, $13.4 million or 59.3% 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.

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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.

As of June 30, 2024, the Company has $25.0 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 experienced 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 of June 30, 2024, the Company has $29.3 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.

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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.

As of June 30, 2024, the Company has $5.9 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.

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Investment Results

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,

Our investment portfolio returns decreased to $9.9 million and $26.9 million during the three and six months ended June 30, 2024, respectively, compared to $16.5 million and $27.0 million for the same respective periods in 2023 largely due to lower interest income earned on our funds withheld balance with AmTrust as claim payments continued to be settled through the funds held receivable.

This was offset by a combination of higher yields on certain fixed income assets along with strengthening returns on our alternative investment portfolio, which increased by 9.0% during 2024, and produced a positive net return of 4.6% during 2024 compared to 3.7% in 2023.

The following table summarizes our investment results 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,

($ in thousands) 2024 2023 2024 2023

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Fixed income assets (1)

(77) (786) (295) (786)

Other investments, including equities — 10 — 186

Total net realized (losses) gains (218) 176

Total net realized losses (77) (776) (295) (600)

Net unrealized gains:

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Total net unrealized gains

Interest in income (loss) of equity method investments:

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

1,534 1,921 10,502 2,750

Interest in income of equity method investments:

Interest in income of equity method investments 1,463 4,803 2,069 4,752

Total investment return included in earnings (A)

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GAAP consolidated financial statements.

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

The following table details total investment returns for our fixed income investments for the three and six months ended June 30, 2024 and 2023:

Fixed Income Investments (1)

For the Three Months Ended March 31,

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

($ in thousands) 2024 2023 2024 2023

1 unchanged sentence

Net realized losses

(77) (786) (295) (786)

Change in AOCI (3)

487 847 1,505 2,783

Gross investment returns $ 6,386 $ 9,067 $ 13,772 $ 19,760

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Net Investment Returns 1.3 % 1.1 % 2.6 % 2.2 %

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:

Our net investment returns increased to 1.3% and 2.6% for the three and six months ended June 30, 2024, respectively, compared to 1.1% and 2.2% for the same respective periods in 2023.

This was largely due to floating rate investments that comprised 50.5% of our fixed income investments at June 30, 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 and six months ended June 30, 2024, respectively, compared to 7.0% and 6.7% for the same respective periods in 2023.

This 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 $69.1 million during the six months ended June 30, 2024 compared to an average balance of $351.8 million for the same respective period in 2023 as claims payments are made using the funds withheld receivable for the runoff of existing loss reserves for the terminated AmTrust Quota Share and the European Hospital Liability Quota Share contracts.

The following table details total investment returns for our alternative investments for the three and six months ended June 30, 2024 and 2023, respectively:

Alternative Investments (2)

For the Three Months Ended March 31,

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

($ in thousands) 2024 2023 2024 2023

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Net realized and unrealized gains

1,534 1,931 10,502 2,936

Gross investment returns $ 4,208 $ 8,435 $ 14,988 $ 10,276

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GAAP consolidated financial statements.

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

The following table details total investment returns for alternative investments by asset class for the six months ended June 30, 2024:

June 30, 2024 Private Equity Private Credit Alternative Assets Venture Capital Real Estate Total

($ in thousands)

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Annualized Gross Returns 19.5 % 16.5 % 2.7 % 5.9 % (0.7) % 9.3 %

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

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

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

($ in thousands)

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Annualized Gross Returns 10.3 % 7.6 % 6.2 % 9.7 % 8.7 % — % 7.6 %

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.

During the six months ended June 30, 2024, our annualized gross and net investment returns exceeded our cost of debt capital, and on an inception to date basis through June 30, 2024, active alternative investments have now produced an internal rate of return of 5.2% 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 39.2% of our total alternative assets as of June 30, 2024.

Excluding the investments still carried at cost, the internal rate of return was 10.7% with a multiple on invested capital of 1.23.

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

Total returns on active alternative investments by asset class from inception are discussed below in detail as of June 30, 2024:

Asset Class June 30, 2024 Total Direct Fund

($ in thousands) Carrying Value IRR MOIC (x) IRR MOIC (x) IRR MOIC (x)

Private Equity $ 95,952 10.8 % 1.32 10.2 % 1.33 11.6 % 1.29

Private Credit 56,016 8.0 % 1.15 11.2 % 1.14 7.9 % 1.15

Hedge Funds — 5.2 % 1.12 5.2 % 1.12 — % —

Alternatives 102,003 5.1 % 1.12 5.2 % 1.13 (11.1) % 0.90

Venture Capital 22,513 8.3 % 1.20 13.6 % 1.45 (10.5) % 0.82

Real Estate 60,293 (2.5) % 0.96 (2.5) % 0.96 — % —

Total $ 336,777 5.2 % 1.12 5.4 % 1.13 8.1 % 1.15

• 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.

During the six months ended June 30, 2024, private equity investments produced a total investment return of $8.7 million with fund investments earning $1.0 million while direct investments produced a total investment return of $7.7 million.

Inception to date, private equity investments have produced an internal rate of return of 10.8% and a multiple on invested capital of 1.32;

fund investments produced an internal rate of return of 11.6% and a multiple on invested capital of 1.29, and direct investments have produced an

internal rate of return of 10.2% and a multiple on invested capital of 1.33.

No realized gains on private equity investments have been recognized through June 30, 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.

During the six months ended June 30, 2024, private credit investments produced a total investment return of $4.5 million with fund investments earning $4.3 million while direct investments produced a total investment return of $0.2 million.

Inception to date, private credit investments have produced an internal rate of return of 8.0% and a multiple on invested capital of 1.15, with fund investments producing an internal rate of return of 7.9% and a multiple on invested capital of 1.15, while direct investments have produced an internal rate of return of 11.2% and a multiple on invested capital of 1.14.

• 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.

During the six months ended June 30, 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 38.0% and a multiple on invested capital of 1.44;

in total, alternative fund investments have produced an

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

in total, alternative fund investments have produced an internal rate of return of (11.1)% and a multiple on invested capital of 0.90.

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.

these investments represent 76.1% of the alternative investment class at June 30, 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.

During the six months ended June 30, 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 8.3% and a multiple on invested capital of 1.20;

venture capital fund investments have produced an internal rate of return of (10.5)% and a multiple on invested capital of 0.82, while direct venture capital investments have produced an internal rate of return of 13.6% 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.

Through June 30, 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.

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Other Balance Sheet Changes

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 %

The following table summarizes our other material balance sheet changes at June 30, 2024 and December 31, 2023:

($ in thousands) June 30, 2024 December 31, 2023 Change in $ Change %

Deferred commission and other acquisition expenses

8 unchanged sentences

80,506 73,240 7,266 9.9 %

Accrued expenses and other liabilities

30,766 28,244 2,522 8.9 %

The Company's deferred commission and other acquisition expenses decreased by 17.8% and unearned premiums decreased by 17.0% 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 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.

Funds withheld receivable decreased by 77.4% primarily due to settlement of reinsurance losses payable under the AmTrust Quota Share as well as $15.3 million of excess collateral released by AmTrust during the six months ended June 30, 2024.

The funds withheld receivable balance is likely to be exhausted during the third quarter 2024.

The Company's reserve for loss and LAE decreased by 12.1% primarily due to continued settlement of loss reserves for AmTrust Reinsurance contracts.

The deferred gain on retroactive reinsurance increased by $7.3 million or 9.9% compared to December 31, 2023 driven by net adverse reserve development of $10.1 million reported for policies under the AmTrust Quota Share as these losses are largely covered by the LPT/ADC Agreement with Cavello.

The adverse development was adjusted to remove the impact of favorable loss development on certain Workers Compensation losses that were commuted to AmTrust in 2019 that inure to the benefit of Cavello under the terms of the LPT/ADC Agreement and reduced the deferred gain liability on retroactive reinsurance by $3.2 million for the six months ended June 30, 2024.

Capital Resources

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.

During the six months ended June 30, 2024, book value per common share decreased by 4.0% to $2.38 and diluted book value per common share decreased by 4.9% to $2.34, compared to December 31, 2023.

This was largely due to lower capital resources which decreased by $11.1 million for the six months ended June 30, 2024.

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

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 (%)

The following table shows the movement in our capital resources at June 30, 2024 and December 31, 2023:

June 30, 2024 December 31, 2023 Change in $ Change (%)

($ in thousands)

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$ 500,407 $ 511,521 $ (11,114) (2.2) %

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

Total capital resources decreased by $11.1 million compared to December 31, 2023 due to the following items:

• net increase in additional paid-in capital of $0.9 million due to share-based compensation of $0.9 million;

• net decrease in AOCI of $1.0 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.

(1) net unrealized gains on investment of $1.5 million mainly from our AFS bond portfolio relating to market price movements in the six months ended June 30, 2024, offset by (2) a decrease in foreign currency translation adjustment of $2.5 million in the six months ended June 30, 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.

• accumulated deficit increased by $8.5 million due to the net loss reported for the six months ended June 30, 2024;

• treasury shares increased by $2.5 million due to $2.3 million of shares repurchased under our authorized common share repurchase plan and $0.2 million of common share repurchases due to tax withholding on vested 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 March 31, 2024 and December 31, 2023 were as follows:

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

Book value and diluted book value per common share at June 30, 2024 and December 31, 2023 were as follows:

($ in thousands except share and per share data) June 30, 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 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.

The Company adopted a Rule 10b5-1(c)(1) trading arrangement as defined in Item 408 of Regulation S-K under the Securities Exchange Act of 1934, as amended.

On March 20, 2024, an amendment was made to the agreement initially signed on September 29, 2023 between Maiden Holdings and a financial intermediary authorizing the intermediary to purchase common shares from October 30, 2023 until the close of business on September 29, 2024, subject to certain conditions set forth in the agreement.

The Company has fulfilled the repurchases under its current Rule 10b5-1(c)(1) trading arrangement.

During the three and six months ended June 30, 2024, Maiden Reinsurance repurchased 747,561 and 1,099,672 common shares from the open market 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 $69.4 million for common share repurchases at June 30, 2024.

There were no changes in the Company’s Senior Notes at June 30, 2024 compared to December 31, 2023.

The Company did not enter into any short-term borrowing arrangements during the six months ended June 30, 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.

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

The Company has a remaining authorization of $99.9 million for such repurchases at June 30, 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 $50.0 million to Maiden NA as of March 31, 2024.

Subsequent to those approvals, Maiden Reinsurance paid total dividends of $56.3 million to Maiden NA as of June 30, 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 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:

Summarized financial information of Maiden NA and Maiden Holdings as of June 30, 2024 and for the three and six months ended June 30, 2024 were as follows:

Maiden NA Maiden Holdings

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Related party loan payable (not included in total liabilities above) — 300,792

Total revenue for the quarter-to-date period 1,723 5

Net loss for the quarter-to-date period

(1,401) (9,960)

Total revenue for year-to-date period 674 9

1 unchanged sentence

(5,490) (19,199)

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

The ratio of Debt to Total Capital Resources at June 30, 2024 and December 31, 2023 was computed as follows:

($ in thousands) June 30, 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 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.

As discussed above, at June 30, 2024, guarantees of $69.0 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 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.

Non-GAAP operating (loss) earnings and Non-GAAP diluted operating (loss) earnings per share (attributable) available to common shareholders

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

GAAP financial measure as follows:

For the Three Months Ended March 31, 2024 2023

For the Three Months Ended June 30, 2024 2023

($ in thousands except per share data)

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

Net loss $ (9,971) $ (2,933)

Add (subtract):

1 unchanged sentence

(1,457) (1,145)

Foreign exchange and other losses

Interest in income of equity method investments

(1,463) (4,803)

Change in deferred gain on retroactive reinsurance under the LPT/ADC Agreement 2,287 10,727

Non-GAAP operating (loss) earnings

$ (10,604) $ 4,467

Diluted loss per share attributable to common shareholders

$ (0.10) $ (0.03)

Add (subtract):

Net realized and unrealized investment gains (0.01) (0.01)

Foreign exchange and other losses — 0.02

Interest in income of equity method investments (0.02) (0.05)

Change in deferred gain on retroactive reinsurance under the LPT/ADC Agreement 0.02 0.11

Non-GAAP diluted operating (loss) earnings per share (attributable) available to common shareholders

$ (0.11) $ 0.04

For the Six Months Ended June 30, 2024 2023

($ in thousands except per share data)

Net loss attributable to Maiden common shareholders $ (8,512) $ (14,261)

Add (subtract):

Net realized and unrealized investment gains

(10,207) (2,150)

Foreign exchange and other (gains) losses

(2,053) 5,437

Interest in (income) loss of equity method investments

Interest in income of equity method investments

(2,069) (4,752)

Change in deferred gain on retroactive reinsurance under the LPT/ADC Agreement 7,287 12,300

1 unchanged sentence

$ (15,554) $ (3,426)

Diluted earnings (loss) per share available (attributable) to common shareholders

Diluted loss per share attributable to common shareholders

$ (0.08) $ (0.14)

2 unchanged sentences

Foreign exchange and other (gains) losses (0.02) 0.05

Interest in (income) loss of equity method investments (0.01) —

Interest in income of equity method investments (0.02) (0.04)

Change in deferred gain on retroactive reinsurance under the LPT/ADC Agreement 0.07 0.12

1 unchanged sentence

$ (0.16) $ (0.03)

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.

Non-GAAP operating loss was $10.6 million for the three months ended June 30, 2024 compared to non-GAAP operating earnings of $4.5 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 operating loss was $15.6 million for the six months ended June 30, 2024, compared to non-GAAP operating loss of $3.4 million for the same period in 2023.

The non-GAAP operating loss in both respective years 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 months ended March 31, 2024 and 2023 are as follows:

For the Three Months Ended March 31,

The non-GAAP underwriting results for the three and six months ended June 30, 2024 and 2023 are as follows:

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

($ in thousands) 2024 2023 2024 2023

2 unchanged sentences

Net premiums earned $ 12,077 $ 11,039 $ 24,485 $ 20,041

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

Other insurance revenue, net — 78 46 19

Non-GAAP net loss and LAE (1)

4 unchanged sentences

$ (7,478) $ 1,465 $ (10,002) $ (5,215)

(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.

(1) Non-GAAP underwriting loss and non-GAAP net loss and LAE for the three and six months ended June 30, 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 months ended March 31, 2024 and 2023 in the table below:

For the Three Months Ended March 31,

The non-GAAP underwriting results above are summarized by segment for the three and six months ended June 30, 2024 and 2023 in the table below:

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

($ in thousands) 2024 2023 2024 2023

5 unchanged sentences

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:

As shown in the table above, adjusted for the increase in the deferred gain under the LPT/ADC Agreement of $2.3 million and $7.3 million during the three and six months ended June 30, 2024, respectively, the non-GAAP underwriting loss was $7.5 million and $10.0 million, respectively.

These results compared to non-GAAP underwriting income of $1.5 million and underwriting loss of $5.2 million when adjusted for the increase in the deferred gain under the LPT/ADC Agreement of $10.7 million and $12.3 million during the three and six months ended June 30, 2023, respectively.

The non-GAAP underwriting loss of $7.5 million and $10.0 million for the three and six months ended June 30, 2024, respectively, 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.

• adverse loss development of $0.1 million and $2.6 million for the three and six months ended June 30, 2024 in the European Hospital Liability Quota Share, which is not covered by the LPT/ADC Agreement;

• favorable loss development on commuted Workers Compensation losses which are contractually covered by the LPT/ADC Agreement reduced the deferred gain liability on retroactive reinsurance by $3.2 million for the three and six months ended June 30, 2024;

• underwriting loss of $2.8 million and $3.0 million in the Diversified Reinsurance segment for the three and six months ended June 30, 2024, respectively.

Please refer to the respective segment results for AmTrust Reinsurance and Diversified Reinsurance under Item 2.

1 unchanged sentence

Non-GAAP Net Loss and LAE

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.

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 $2.3 million and $7.3 million for the three and six months ended June 30, 2024, respectively.

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 $10.7 million

and $12.3 million for the three and six months ended June 30, 2023, respectively.

These adjustments are reflected in the calculation of non-GAAP Loss and LAE below:

For the Three Months Ended March 31,

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

($ in thousands) 2024 2023 2024 2023

2 unchanged sentences

adverse prior year loss development covered under the LPT/ADC Agreement

2,287 10,727 7,287 12,300

Non-GAAP net loss and LAE

1 unchanged sentence

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 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;

The Adjusted Shareholders' Equity, Adjusted Total Capital Resources and Adjusted Book Value per Common Share at June 30, 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 $78.2 million at June 30, 2024 compared to $70.9 million at December 31, 2023;

this increase is attributable to $7.3 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.

Net adverse development of $10.1 million was reported for policies under the AmTrust Quota Share for the six months ended June 30, 2024.

These losses are largely 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 March 31, 2024 and December 31, 2023:

($ in thousands) March 31, 2024 December 31, 2023 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 June 30, 2024 and December 31, 2023:

($ in thousands) June 30, 2024 December 31, 2023 Change in $ Change %

Total shareholders' equity

7 unchanged sentences

Non-GAAP Operating ROACE

Non-GAAP Operating ROACE for the three months ended March 31, 2024 and 2023 was as follows:

For the Three Months Ended March 31,

Non-GAAP Operating ROACE for the three and six months ended June 30, 2024 and 2023 was as follows:

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

($ in thousands) 2024 2023 2024 2023

Non-GAAP operating loss $ (4,950) $ (7,893)

Non-GAAP operating (loss) earnings $ (10,604) $ 4,467 $ (15,554) $ (3,426)

Opening adjusted shareholders’ equity 325,276 317,775 320,076 329,987

4 unchanged sentences

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 March 31, 2024 and December 31, 2023 was computed as follows:

March 31, 2024 December 31, 2023

The adjusted book value per common share as reconciled for the recognition of the unamortized deferred gain under the LPT/ADC Agreement at June 30, 2024 and December 31, 2023 was computed as follows:

June 30, 2024 December 31, 2023

Book value per common share

6 unchanged sentences

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 March 31, 2024 and December 31, 2023 was computed as follows:

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

The ratio of Debt to Adjusted Total Capital Resources at June 30, 2024 and December 31, 2023 was computed as follows:

($ in thousands) June 30, 2024 December 31, 2023

Senior notes - principal amount

15 unchanged sentences

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 March 31, 2024, no such hedges or hedging strategies were in force or had been entered into.

At June 30, 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.

1 unchanged sentence

The effect of the translation adjustments for foreign operations is included in AOCI.

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.

Net foreign exchange gains of $0.0 million and $2.1 million were generated during the three and six months ended June 30, 2024, respectively, compared to net foreign exchange losses of $2.6 million and $4.7 million for the three and six months ended June 30, 2023.

The increase in foreign exchange gains for the six months ended June 30, 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 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.

At June 30, 2024, the decrease in foreign currency translation adjustments of $2.5 million for the six months ended June 30, 2024 was 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 June 30, 2024 included reserve for net loss and LAE of $262.2 million.

Our foreign currency asset exposures at June 30, 2024 include $151.3 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, $29.3 million of equity method real estate investments denominated in Canadian dollars, as well as $14.5 million of funds withheld receivable.

Effects of Inflation

13 unchanged sentences

Off-Balance Sheet Arrangements

At March 31, 2024, we did not have any off-balance sheet arrangements as defined by Item 303(a) (4) of Regulation S-K.

At June 30, 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