What changed in this filing

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Item 2. Management’s Discussion and Analysis

2024-11-12 compared with 2024-08-08 · 465 added, 408 removed, 1009 unchanged (46% of the section changed)

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

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

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

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

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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.

("AmTrust") which is expected to cover certain programs 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 certain programs 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.

All programs written by Maiden LF and GF, including those covered by the AmTrust Renewal Rights Agreements, are in the process of being cancelled in accordance with requirements of the AmTrust Renewal Rights Agreements, or their contractual terms.

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, 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.

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 as we actively evaluate current potential transactions.

Our business currently consists of two reportable segments:

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Business Strategy

We continued to deploy our revised operating strategy during 2024 which leverages the significant assets and capital we retain.

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

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

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

This strategy presently has two principal areas of focus:

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

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

In recent years we have pursued a revised operating strategy which leveraged the significant assets and capital we retain.

Our assessment had been that these areas of strategic focus would enhance our profitability through increased returns, which would also increase the likelihood of fully utilizing the significant net operating loss ("NOL") carryforwards, as described further below, which would increase both GAAP and non-GAAP book value and create additional common shareholder value.

To date, that strategy presently has had 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;

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

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

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

As the run-off of our insurance liabilities has been more volatile than expected and our asset management strategies develop along timelines longer than initially anticipated, the need to allocate capital to other activities that produce more consistent levels of revenue and profit as we seek to create longer-term shareholder value has increased.

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

During 2024, we have continued to evaluate numerous opportunities in pursuit of these objectives.

Our results for the three months ended September 30, 2024 were impacted by expenditures in pursuit of these objectives.

To date, we invested $9.5 million in insurance distribution platforms and these investments have achieved an internal rate of return of 24.4% and a multiple of capital of 1.77x on those investments.

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

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

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

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

Further, while we have not engaged or pursued active reinsurance underwriting of new prospective risks recently, we continue to evaluate if such a strategy, even on a limited basis, would produce suitable value for shareholders.

While we currently have not pursued such a strategy on a stand alone basis, such an approach could complement and enhance an approach to investing in and acquiring fee-based and distribution properties and strengthen those entities, and we believe numerous opportunities to execute a complimentary strategy are available.

In light of our increased activities in these areas, during the third quarter of 2024 we took steps to begin to reduce the asset management pillar of our strategy which are discussed below.

Our alternative investments portfolio decreased by 24.8% during the three months ended September 30, 2024 due to recent sales and redemptions of private equity and private credit funds and this portfolio may reduce further in future periods as we continue to refine our strategy.

While we remain confident that our asset management strategy will achieve the returns we have set out to achieve, we believe it is more critical to reposition our balance sheet currently and increase our liquidity in support of the current initiatives being pursued.

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

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

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

Further, there can be no assurance that our insurance liabilities will run-off at levels that will permit further capital management activities, which we continually review as part of our strategy.

Please refer to the "Liquidity and Capital Resources" section for further information on our asset and capital management activities.

Our ability to execute our business strategies are dependent on maintaining adequate levels of unrestricted liquidity and cash flows.

Please refer to the "Liquidity and Capital Resources" section for further information.

There can be no assurance that our insurance liabilities will run-off at levels that will permit further capital management activities, which we continually review as part of our strategy.

In recent years, losses reported in our AmTrust Reinsurance segment continue to produce significant levels of adverse prior period loss development, including amounts increasingly not covered by the LPT/ADC Agreement.

In addition, with regard to the European Hospital Liability Quota Share, certain tables used in determining non-economic damages were recently updated by the applicable authorities in Italy and increased compensation values for subject claims.

The Company is currently analyzing the potential impact of the changes to these tables on its estimate of ultimate loss for this contract, including consultation with specialist third-party subject matter experts.

In combination with the continued emergence of loss data from adverse claims verdicts noted above, these revisions could significantly impact the Company's evaluation of ultimate loss on these claims.

As a result, during the third quarter of 2024 and currently, we are pursuing finality solutions to resolve the AmTrust liabilities not covered by the LPT/ADC Agreement, including through third-parties.

These solutions could involve significant charges to execute and we are actively evaluating the potential costs and benefits of such solutions, to the extent they are available to the Company.

We have also retained third-party specialists and subject matter experts as part of our evaluation of the claims and actuarial impact of these exposures.

There can be no guarantee that we will execute such finality solutions.

To the extent these solutions are not available or do not occur, we may incur significant additional reserve charges based on the final analysis of this process.

Asset Management

As part of our expanded asset management activities, as noted we have evaluated and continue to consider investing in various initiatives in the insurance industry across a variety of segments which we believe will produce appropriate risk-adjusted returns while maintaining the option to consider underwriting activities in the future.

As part of our asset management activities, as noted we have previously evaluated and continue to consider investing in various initiatives in the insurance industry across a variety of segments which we believe will produce appropriate risk-adjusted returns while maintaining the option to consider underwriting activities in the future.

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 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.

However 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 have modified our approach to this aspect of our current strategy, including reducing our investments and commitments to alternative investments as recently accomplished in the third quarter of 2024.

As of September 30, 2024 , we have invested approximately $253.4 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.

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

Capital Management

Our capital management strategy is significantly informed by the required capital needed to operate our business in a prudent manner and our ongoing analysis of our loss development trends.

Trends in recent years have increased our confidence in our recorded ultimate losses for our insurance liabilities in run-off, however a prudent assessment dictates that the run-off portfolio still requires additional maturity to fully emerge, as evidenced by the adverse loss development we have experienced in 2023 and 2024.

While there is no assurance that prior positive long-term loss development trends will resume, as our insurance liabilities further mature we remain confident that we can continue the prudent and disciplined repurchase of both our common shares and senior notes which are authorized for repurchase, which we believe provided the greatest risk-adjusted returns to our common shareholders.

While our recorded ultimate losses for our insurance liabilities have experienced significant adverse loss development in recent years, as our insurance liabilities further mature we remain confident that we can continue the prudent and disciplined repurchase of our common shares and senior notes, both of which are authorized for repurchase, which we believe provided the greatest risk-adjusted returns to our common shareholders.

Please refer to "Notes to Consolidated Financial Statements - Note 6 — Shareholders' Equity" under Item 8 "Financial Statements and Supplementary Data" of the Annual Report on Form 10-K for the year ended December 31, 2022 for further information on the common shares issued as part of the exchange for preference shares held by Maiden Reinsurance and other preference shareholders in 2022 ("Exchange").

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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 three and six months ended June 30, 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 nine months ended September 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 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.

At September 30, 2024, GLS and its subsidiaries have total insurance related liabilities of $23.6 million which consisted of total loss reserves of $17.3 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 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.

During the nine months ended September 30, 2024, our book value decreased by 15.7% to $2.09 per common share at September 30, 2024, and our non-GAAP book value decreased by 6.6% to $2.98 per common share at September 30, 2024.

We made additional progress in the capital management pillar of our business strategy, repurchasing 388,728 and 1,488,400 common shares during the three and nine months ended September 30, 2024, respectively.

The run-off of our historic reinsurance programs produced an underwriting loss of $18.8 million and $36.0 million for the three and nine months ended September 30, 2024, respectively.

This was driven by adverse prior year reserve development of $11.7 million and $25.1 million for three and nine months ended September 30, 2024, respectively, which offset the positive progress made in our capital and asset management strategies.

Approximately $11.8 million or 101.0% and $22.5 million or 89.6% of total adverse prior year reserve development for the three and nine months ended September 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.

During the nine months ended September 30, 2024, our alternative investment portfolio decreased by 18.0% primarily due to sales and redemptions of equity securities, private equity investments and private credit funds in the third quarter of 2024.

These sales were part of a broader effort to reposition our balance sheet as part of ongoing group strategic initiatives we are actively pursuing while also strengthening overall liquidity.

Our alternative investment portfolio produced a positive net return of 4.1% during the nine months ended September 30, 2024 compared to 5.0% for the same period in 2023.

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 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 $338.2 million at June 30, 2024.

Approximately $186.2 million of these NOL carryforwards expire in various years beginning in 2029.

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.

As of September 30, 2024, $159.4 million or 46.1% 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 $119.2 million or $1.19 per common share at June 30, 2024.

DTA (before valuation allowance) of $126.0 million or $1.27 per common share at September 30, 2024.

DTA of $126.0 million is not presently recognized on the Company's condensed consolidated balance sheets as a full valuation allowance is carried against it.

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

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

For the Three Months Ended June 30, 2024 2023 Change

Three and Nine Months Ended September 30, 2024 and 2023 Financial Highlights

For the Three Months Ended September 30, 2024 2023 Change

Summary Consolidated Statement of Income Data (unaudited):

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Non-GAAP measures:

Non-GAAP operating (loss) earnings (1)

Non-GAAP operating loss (1)

(15,682) (11,747) (3,935)

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

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

(0.16) (0.12) (0.04)

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(20.4) % (14.4) % (6.0)

For the Six Months Ended June 30, 2024 2023 Change

For the Nine Months Ended September 30, 2024 2023 Change

Summary Consolidated Statement of Income Data (unaudited):

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(13.5) % (6.2) % (7.3)

June 30, 2024 December 31, 2023 Change

September 30, 2024 December 31, 2023 Change

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

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We excluded net realized investment gains (losses), interest in income (loss) of equity method investments and foreign exchange and other gains (losses) as we believe these are influenced by market opportunities and other factors.

We do not believe that ceded risks under the LPT/ADC Agreement are representative of our ongoing and future business which are different to retroactive reinsurance risks written by GLS that are representative of our ongoing and future business.

We believe all of these amounts are substantially independent of our business and any potential future underwriting process, therefore including them would distort the analysis of underlying trends in our operations.

We believe all of these amounts are substantially independent of our business and any potential future underwriting process, therefore their inclusion would distort the analysis of underlying trends in our operations.

Underwriting income (loss) is a non-GAAP measure and is calculated as net premiums earned plus other insurance revenue less net loss and LAE, commission and other acquisition expenses and general and administrative expenses directly related to underwriting activities.

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

The Company no longer presents certain non-GAAP measures such as combined ratio and its related components in this Quarterly Report on Form 10-Q for the three and 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.

The Company no longer presents certain non-GAAP measures such as combined ratio and its related components in this Quarterly Report on Form 10-Q for the three and nine months ended September 30, 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 and six months ended June 30, 2024 and 2023:

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

The following table sets forth our selected unaudited Condensed Consolidated Statement of Income data for the three and nine months ended September 30, 2024 and 2023:

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

($ in thousands) 2024 2023 2024 2023

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$ 13,403 $ 12,479 $ 37,888 $ 32,520

Other insurance revenue, net — 78 46 19

Other insurance (expense) revenue , net — (16) 46 3

Net loss and LAE

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4,878 9,048 19,531 29,111

Net realized and unrealized investment gains 1,457 1,145 10,207 2,150

Net realized and unrealized investment (losses) gains (3,804) 244 6,403 2,394

Foreign exchange and other (losses) gains

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Interest in income of equity method investments

751 2,190 2,820 6,942

Net loss $ (34,468) $ (3,527) $ (42,980) $ (17,788)

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

Net loss 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:

Net loss for the three months ended September 30, 2024 was $34.5 million compared to a net loss of $3.5 million for the same respective period in 2023.

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

• an underwriting loss of $18.8 million for the three months ended September 30, 2024 compared to an underwriting loss of $10.9 million in the same period in 2023 largely due to:

• adverse prior year loss development ("PPD") of $11.7 million in the third quarter of 2024 compared to adverse PPD of $7.8 million during the same period in 2023, detailed as follows;

• Our AmTrust Reinsurance segment had adverse PPD of $11.7 million in the third quarter of 2024 compared to adverse PPD of $6.0 million for the third quarter of 2023.

Of the total adverse PPD experienced in this segment for the third quarter of 2024, $11.8 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 favorable PPD of $15.0 thousand in the third quarter of 2024 compared to adverse PPD of $1.9 million for the third quarter of 2023.

• On a current accident year basis, underwriting loss was $7.0 million for the three months ended September 30, 2024 compared to an underwriting loss of $3.1 million for the same period in 2023.

• lower income from investment activities which totaled $1.8 million for the three months ended September 30, 2024 compared to $11.5 million for the same period in 2023.

The investment results for the third quarter of 2024 include $6.6 million in losses related to the disposition of alternative investments discussed previously, including $1.6 million in expenses related to these sales, along with continued declines in income from restricted assets as the associated liabilities continue to run-off;

• corporate general and administrative expenses increased to $6.8 million for the three months ended September 30, 2024 compared to corporate expenses of $3.9 million for the same period in 2023;

• foreign exchange and other losses of $5.9 million for the three months ended September 30, 2024, compared to foreign exchange and other gains of $4.6 million for the same period in 2023.

Net loss for the nine months ended September 30, 2024 was $43.0 million compared to a net loss of $17.8 million for the same period in 2023.

The net decrease in our financial results for the nine months ended September 30, 2024 compared to 2023 was largely due to:

• underwriting loss of $36.0 million in the nine months ended September 30, 2024 compared to an underwriting loss of $28.4 million for the same period in 2023 largely due to:

• adverse PPD of $25.1 million for the nine months ended September 30, 2024 compared to adverse PPD of $16.0 million for the same period in 2023 detailed as follows:

• Our AmTrust Reinsurance segment had adverse PPD of $24.2 million in 2024, compared to adverse PPD of $12.0 million in 2023.

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• Our Diversified Reinsurance segment had adverse PPD of $0.9 million in 2024, compared to adverse PPD of $3.9 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.

• on a current accident year basis, an underwriting loss of $11.0 million for the nine months ended September 30, 2024 compared to an underwriting loss of $12.4 million for the same period in 2023, primarily due to results in AmTrust Reinsurance segment as discussed further below in the segment analysis.

• lower income from investment activities which totaled $28.8 million for the nine months ended September 30, 2024 compared to $38.4 million in 2023.

The investment results for the nine months ended September 30, 2024 included $5.7 million in losses related to the disposition of alternative investments discussed previously, including $1.6 million in expenses related to these sales, along with continued declines in income from restricted assets as the associated liabilities continue to run-off;

• corporate general and administrative expenses increased to $16.9 million for the nine months ended September 30, 2024 compared to corporate expenses of $13.8 million for the same period in 2023;

• foreign exchange and other losses of $3.9 million for the nine months ended September 30, 2024 compared to foreign exchange and other losses of $0.8 million earned for the same period in 2023.

Net Premiums Written

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

For the Three Months Ended June 30, 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 nine months ended September 30, 2024 and 2023:

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

($ in thousands) Total Total $ %

3 unchanged sentences

Total $ 8,843 $ 8,625 $ 218 2.5 %

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

For the Nine Months Ended September 30, 2024 2023 Change in

($ in thousands) Total Total $ %

3 unchanged sentences

Total $ 25,496 $ 16,260 $ 9,236 56.8 %

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.

Net premiums written for the three and nine months ended September 30, 2024 increased to $8.8 million and $25.5 million, respectively, compared to net premiums written of $8.6 million and $16.3 million for the same respective periods in 2023:

• Premiums written in the Diversified Reinsurance segment increased by $2.3 million and $6.1 million for the three and nine months ended September 30, 2024, respectively, 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 $2.1 million and increased by $3.2 million for the three and nine months ended September 30, 2024, respectively, compared to the same respective periods in 2023.

The negative written premiums for the nine months ended September 30, 2023 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 $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

Net premiums earned increased by $0.9 million and $5.4 million for the three and nine months ended September 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 nine months ended September 30, 2024 and 2023:

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

($ in thousands) Total Total $ %

4 unchanged sentences

$ 13,403 $ 12,479 $ 924 7.4 %

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

For the Nine Months Ended September 30, 2024 2023 Change in

($ in thousands) Total Total $ %

4 unchanged sentences

$ 37,888 $ 32,520 $ 5,368 16.5 %

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.

Net premiums earned in the Diversified Reinsurance segment for the three and nine months ended September 30, 2024 increased by $2.4 million or 32.9% and $4.9 million or 22.5%, respectively, compared to the same respective periods in 2023 due to growth in Credit Life programs written by Maiden LF and Maiden GF.

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

Net premiums earned in the AmTrust Reinsurance segment for the three and 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.

Net premiums earned in the AmTrust Reinsurance segment for the three and nine months ended September 30, 2024 decreased by $1.4 million or 27.4% and increased by $0.5 million or 4.3%, respectively, compared to the same respective periods in 2023.

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

3 unchanged sentences

Net Investment Income

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;

Net investment income decreased by $4.2 million or 46.1% and $9.6 million or 32.9% for the three and nine months ended September 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 combined with higher investment expenses compared to the prior year periods.

Annualized average book yields increased to 4.4% and 4.2% for the three and nine months ended September 30, 2024, respectively, compared to 4.3% and 4.1% for the same respective periods in 2023 due to the following factors:

• Floating rate investments comprise 43.6% of our fixed income investments as of September 30, 2024;

• 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 nine months ended September 30, 2024, respectively, compared to 7.3% and 6.9% for the same respective periods in 2023;

partly offset by:

• 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,

• Interest income on our funds withheld receivable decreased by $2.2 million and $7.3 million for the three and nine months ended September 30, 2024, respectively, compared to the same periods in 2023.

This was driven by lower average funds withheld balances with AmTrust which were $8.9 million and $51.8 million for the three and nine months ended September 30, 2024, respectively, compared to $250.0 million and $317.1 million for the same respective periods in 2023.

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

At September 30, 2024, the funds withheld balance with AmTrust decreased to $0.0 million compared to a balance of $213.1 million held at September 30, 2023;

• Investment expenses increased by $1.7 million and $1.8 million for the three and nine months ended September 30, 2024, respectively, compared to the same periods in 2023 driven by $1.6 million of fees incurred related to sales and redemptions in our alternative investment portfolio during the third quarter of 2024.

Average aggregate fixed income assets for the three and nine months ended September 30, 2024 decreased by 33.1% and 31.5%, respectively, compared to the same periods in 2023 due to continued run-off of our reinsurance liabilities previously written on prospective risks through the funds withheld receivable.

For the three and nine months ended September 30, 2024 and 2023, we experienced negative operating cash flows due to settlement of claim payments to AmTrust as we run-off 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 nine months ended September 30, 2024 and 2023:

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

($ in thousands) 2024 2023 2024 2023

5 unchanged sentences

GAAP consolidated financial statements.

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,

Net Realized and Unrealized Investment (Losses) Gains

Net realized and unrealized investment losses of $3.8 million and gains of $6.4 million were recognized for the three and nine months ended September 30, 2024, respectively, compared to net realized and unrealized investment gains of $0.2 million and $2.4 million for the same respective periods in 2023.

Net realized and unrealized investment (losses) gains for the three and nine months ended September 30, 2024 and 2023 are summarized in the table below by investment category:

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

($ in thousands) 2024 2023 2024 2023

Net realized (losses) gains:

Net realized gains (losses):

Fixed income assets (1)

$ (429) $ (301) $ (724) $ (1,087)

Other investments, including equity securities — 10 — 186

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

Net unrealized gains:

Other investments, including equity securities 1,534 1,921 10,502 2,750

Total net unrealized gains 1,534 1,921 10,502 2,750

Total net realized and unrealized investment gains $ 1,457 $ 1,145 $ 10,207 $ 2,150

Other investments 9,353 — 9,353 —

Equity securities (3,538) — (3,538) 186

Total net realized gains (losses) 5,386 (301) 5,091 (901)

Net unrealized (losses) gains:

Other investments (11,043) 597 371 2,434

Equity securities 1,853 (52) 941 861

Total net unrealized (losses) gains (9,190) 545 1,312 3,295

Net realized and unrealized investment (losses) gains

$ (3,804) $ 244 $ 6,403 $ 2,394

(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 $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.

For the three months ended September 30, 2024, net investment losses of $3.8 million were primarily due to net unrealized losses of $11.0 million on other investments and net realized losses of $3.5 million on equity securities, partially offset by net realized gains of $9.4 million on other investments and net unrealized gains of $1.9 million on equity securities.

For the nine months ended September 30, 2024, the net investment gains of $6.4 million were primarily due to net realized gains of $9.4 million on the sale of other investments, partially offset by net realized losses of $3.5 million on equity securities.

The net realized gains on other investments for the three and nine months ended September 30, 2024 were mainly from sales and redemptions of private credit funds and private equity funds during the third quarter of 2024.

The sales and redemptions of other investments including equity securities during the three and nine months ended September 30, 2024 were part of a broader effort to reposition our balance sheet as part of ongoing group strategic initiatives while also strengthening overall liquidity.

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,

Total interest in income of equity method investments of $0.8 million and $2.8 million were recognized for the three and nine months ended September 30, 2024, respectively, compared to an interest in the income of equity method investments of $2.2 million and $6.9 million for the same respective periods in 2023.

Equity method investments consist of real estate investments of $57.3 million and other investments of $28.9 million as of September 30, 2024.

Interest in income of equity method investments for the three and nine months ended September 30, 2024 and 2023 is detailed by investment category below:

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

($ in thousands) 2024 2023 2024 2023

3 unchanged sentences

Interest in income of equity method investments

$ 751 $ 2,190 $ 2,820 $ 6,942

Net Loss and LAE

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.

Net loss and LAE increased by $4.7 million for the third quarter of 2024 compared to the same period in 2023.

Net losses were impacted by net adverse PPD of $11.7 million for the third quarter of 2024 compared to net adverse PPD of $7.8 million for the same period in 2023.

Excluding adverse development, the current year losses were $8.2 million for the third quarter of 2024 compared to $7.3 million for the third quarter of 2023.

Net loss and LAE increased by $9.0 million or 24.5% during the nine months ended September 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 $25.1 million in 2024 compared to net adverse PPD of $16.0 million in 2023.

Of the total adverse development in the AmTrust Reinsurance segment experienced to date in 2024, approximately $22.5 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 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.

Commission and other acquisition expenses increased by $3.7 million or 69.8% and increased by $5.0 million or 34.1% for the three and nine months ended September 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.

Total acquisition expenses increased as a percentage of net premiums earned for both respective periods driven by the accelerated amortization of deferred acquisition costs upon the recognition of a premium deficiency of $3.7 million in the AmTrust Reinsurance segment.

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 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,

Total general and administrative expenses increased by $3.2 million or 47.5% and $2.2 million or 9.3% for the three and nine months ended September 30, 2024, respectively, compared to the same periods in 2023.

Excluding non-recurring expenses, our adjusted operating expenses increased 8.8% to $7.4 million for the three months ended September 30, 2024, compared to $6.8 million for the same period in 2023 and decreased 3.8% to $22.7 million for the nine months ended September 30, 2024, compared to $23.6 million for the same period in 2023.

Corporate expenses increased by $2.9 million and $3.1 million for the three and nine months ended September 30, 2024, respectively, largely due to higher legal and actuarial fees incurred in the third quarter of 2024.

The majority of these expenses were related to significant and ongoing strategic initiatives being pursued by the Company, including but not limited to potential acquisitions and active exploration of finality solutions related to the Company's reinsurance liabilities as discussed in the Business Strategy section.

Corporate expenses also included higher stock-based awards which were $1.5 million for the nine months ended September 30, 2024 compared to $1.4 million for the same period in 2023.

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

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

($ in thousands) 2024 2023 2024 2023

5 unchanged sentences

$ 10,014 $ 6,787 $ 25,953 $ 23,734

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.

Expenses related to the Company’s IIS business, which is no longer writing new business and has entered into the AmTrust Renewal Rights Agreements, were 19.6% and 18.1% of the Company's recurring operating expenses for the three and nine months ended September 30, 2024, respectively.

Interest and Amortization Expenses

Total interest and amortization expenses related to outstanding senior notes issued by Maiden Holdings in 2016 and Maiden NA in 2013 ("Senior Notes") were $4.8 million and $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.

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 $14.4 million for the three and nine months ended September 30, 2024, respectively, compared to $4.8 million and $13.4 million for the same respective periods in 2023.

This included interest expense incurred on the Senior Notes for the three and nine months ended September 30, 2024 and 2023 of $4.8 million and $14.3 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, 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.

Due to a change in the amortization method for the 2013 Senior Notes in the prior year period, amortization expenses were $40.0 thousand and $0.1 million for the three and nine months ended September 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 nine months ended September 30, 2023, the Company realized a gain of $39.9 thousand due to the partial repurchase of the 2013 Senior Notes which was offset against total interest and amortization expenses 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 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 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.

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

Foreign Exchange and Other (Losses) Gains

Net foreign exchange and other losses of $5.9 million and $3.9 million were realized during the three and nine months ended September 30, 2024 compared to net foreign exchange and other gains of $4.6 million and losses of $0.8 million for the same respective periods in 2023.

For the three and nine months ended September 30, 2024, net foreign exchange losses of $5.9 million and $3.9 million were attributable to the weakening of the U.S.

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

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.

Net foreign exchange gains of $4.6 million and losses of $0.1 million were realized for the three and nine months ended September 30, 2023 respectively.

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

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

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

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

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.

Our non-USD denominated liabilities at September 30, 2024 included net loss reserves of $258.4 million.

Our foreign currency asset exposures at September 30, 2024 included $149.5 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, $31.1 million of equity method real estate investments denominated in Canadian dollars, as well as $14.8 million of funds withheld receivable.

Underwriting Results by Reportable Segment

Diversified Reinsurance Segment

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,

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

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

($ in thousands) 2024 2023 2024 2023

5 unchanged sentences

$ 9,576 $ 7,207 $ 26,796 $ 21,882

Other insurance revenue, net — 78 46 19

Other insurance (expense) revenue , net — (16) 46 3

Net loss and LAE

6 unchanged sentences

$ (947) $ (2,541) $ (3,996) $ (7,648)

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,

Underwriting loss by business unit is detailed in the table below for the Diversified Reinsurance segment for the three and nine months ended September 30, 2024 and 2023:

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

($ in thousands) 2024 2023 2024 2023

3 unchanged sentences

Underwriting loss $ (947) $ (2,541) $ (3,996) $ (7,648)

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

Premiums — The growth in written and earned premium was the result of new Credit Life programs written by Maiden LF and Maiden GF in the three and nine months ended September 30, 2024.

However, 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 Agreements which are expected to cover certain programs 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 remainder of 2024.

Gross premiums written increased by $2.3 million or 33.9% and $6.1 million, or 30.2% for the three and nine months ended September 30, 2024, respectively, compared to the same respective periods in 2023.

Net premiums written increased by $2.3 million or 34.3% and $6.1 million or 30.2% during the three and nine months ended September 30, 2024, respectively, compared to the same respective periods in 2023.

Net premiums earned increased by $2.4 million or 32.9% and $4.9 million or 22.5% during the three and nine months ended September 30, 2024, respectively, compared to the same respective periods in 2023.

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

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

For the Three Months Ended September 30, 2024 2023 Change

($ in thousands)

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

International $ — $ 3 $ (3)

Other service fee income — (19) 19

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

For the Six Months Ended June 30, 2024 2023 Change

Total other insurance expense , net

$ — $ (16) $ 16

For the Nine Months Ended September 30, 2024 2023 Change

($ in thousands)

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Total other insurance revenue, net

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.

$ 46 $ 3 $ 43

Net Loss and LAE — Net loss and LAE decreased by $0.1 million and increased by $1.2 million for the three and nine months ended September 30, 2024, respectively, compared to the same respective periods in 2023.

The net loss and LAE was impacted by net favorable PPD of $15.0 thousand and net adverse PPD of $0.9 million for the three and nine months ended September 30, 2024, respectively, compared to adverse PPD of $1.9 million and $3.9 million for the same periods in 2023.

The net favorable PPD for the three months ended September 30, 2024 was primarily from favorable development in other runoff business lines partly offset by adverse development in International.

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

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

Commission and Other Acquisition Expenses — Commission and other acquisition expenses increased by $0.6 million or 17.8% and $1.0 million or 9.7% for the three and nine months ended September 30, 2024, respectively, compared to the same respective periods in 2023 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.

General and Administrative Expenses — General and administrative expenses increased by $0.3 million or 13.4% and decreased by $0.9 million or 11.5% for the three and nine months ended September 30, 2024, respectively, compared to the same respective periods in 2023.

The year-to-date movement was largely due to lower staff incentive compensation compared to the prior year period.

AmTrust Reinsurance Segment

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,

The AmTrust Reinsurance segment reported an underwriting loss of $17.8 million and $32.0 million during the three and nine months ended September 30, 2024, respectively, compared to an underwriting loss of $8.4 million and $20.8 million for the same respective periods in 2023.

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

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

($ in thousands) 2024 2023 2024 2023

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Underwriting loss $ (17,804) $ (8,369) $ (32,044) $ (20,777)

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

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

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

($ in thousands) Total Total $

4 unchanged sentences

Specialty Risk and Extended Warranty

(133) 2,058 (2,191)

Total AmTrust Reinsurance

$ (192) $ 1,898 $ (2,090)

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

For the Nine Months Ended September 30, 2024 2023 Change in

($ in thousands) Total Total $

8 unchanged sentences

$ (741) $ (3,892) $ 3,151

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

The negative premiums for the nine months ended September 30, 2024 and September 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 nine months ended September 30, 2023 reflect cession adjustments of $6.1 million due to the cancellation of cases in a certain program within Specialty Risk and Extended Warranty.

Net premiums earned decreased by $1.4 million and increased by $0.5 million for the three and nine months ended September 30, 2024, respectively, compared to the same respective periods in 2023.

The year-to-date movement was due to lower negative premium adjustments during 2024 compared to the prior year period.

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

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

($ in thousands) Total Total $

7 unchanged sentences

$ 3,827 $ 5,272 $ (1,445)

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

For the Nine Months Ended September 30, 2024 2023 Change in

($ in thousands) Total Total $

8 unchanged sentences

$ 11,092 $ 10,638 $ 454

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,

Net Loss and LAE — Net loss and LAE increased by $4.8 million and $7.8 million for the three and nine months ended September 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 nine months ended September 30, 2024 compared to the same respective periods in 2023.

Net adverse PPD was $11.7 million and $24.2 million during the three and nine months ended September 30, 2024, respectively, compared to net adverse development of $6.0 million and $12.0 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 nine months ended September 30, 2024 and 2023:

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

2024 2023 2024 2023

4 unchanged sentences

Total AmTrust Prior Year Development $ 11,718 $ 5,970 $ 24,179 $ 12,046

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.

Net adverse PPD for the three and nine months ended September 30, 2024 was primarily due to the AmTrust Quota Share contract, with European Hospital Liability also producing adverse loss development in the year-to-date period.

In the AmTrust Quota Share, U.S.

2 unchanged sentences

Net adverse loss development on European Hospital Liability Quota Share was primarily driven by emergence of loss data from adverse claim verdicts on older claims 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.

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

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

With regard to the European Hospital Liability Quota Share, certain tables used in determining non-economic damages were recently updated by the applicable authorities in Italy and increased compensation values for subject claims.

As of September 30, 2024, the reinsurance recoverable on unpaid losses under the LPT/ADC Agreement was $532.9 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 $88.0 million.

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.

At September 30, 2024, there was $67.0 million remaining in available coverage under the LPT/ADC Agreement.

For the three and nine months ended September 30, 2024, $11.8 million and $22.5 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.

Commission and Other Acquisition Expenses — Commission and other acquisition expenses increased by $3.1 million and $3.9 million for the three and nine months ended September 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.

This was partially offset by higher earned premiums in Specialty Risk and Extended Warranty programs for the nine months ended September 30, 2024

Total acquisition costs increased as a percentage of net premiums earned for both respective periods due to the accelerated amortization of deferred acquisition costs upon the recognition of a premium deficiency of $3.7 million in the AmTrust Reinsurance segment for the three and nine months ended September 30, 2024.

General and Administrative Expenses — General and administrative expenses increased by $0.1 million and $25.0 thousand for the three and nine months ended September 30, 2024, respectively, compared to the same respective periods in 2023.

Liquidity and Capital Resources

2 unchanged sentences

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 June 30, 2024, the Company had investable assets of $794.2 million compared to $914.3 million as of December 31, 2023.

As of September 30, 2024, the Company had investable assets of $789.7 million compared to $914.3 million as of December 31, 2023.

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

Our investable assets decreased by $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.

Our investable assets decreased by $124.6 million during the nine months ended September 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 $129.2 million in the nine months ended September 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.

6 unchanged sentences

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 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.

During the nine months ended September 30, 2024, Maiden Reinsurance paid dividends of $18.8 million to Maiden NA (2023:

$18.8 million) as part of the approved dividend program.

During the nine months ended September 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.

7 unchanged sentences

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 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.

During the nine months ended September 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.

4 unchanged sentences

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 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.

At September 30, 2024, unrestricted cash, cash equivalents and fixed maturity investments were $139.8 million compared to $73.4 million held at December 31, 2023, an increase of $66.4 million during the nine months ended September 30, 2024.

This was primarily driven by $65.1 million of net proceeds from sales and redemption for alternative investments during the nine months ended September 30, 2024.

The significant sales and redemptions of alternative investments during the three months ended September 30, 2024 was part of a broader effort to reposition our balance sheet as part of ongoing group strategic initiatives while also strengthening overall liquidity.

There was also $15.3 million of collateral released by AmTrust through the funds withheld receivable during the nine months ended September 30, 2024 and the balance is now fully depleted.

This was partly offset by $14.3 million utilized for interest payments on the Senior Notes and $3.1 million for common share repurchases made under the Company's authorized repurchase plan and employee tax obligations on vesting of restricted shares.

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 six months ended June 30, 2024 and 2023:

For the Six Months Ended June 30, 2024 2023

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

For the Nine Months Ended September 30, 2024 2023

($ in thousands)

5 unchanged sentences

Effect of exchange rate changes on foreign currency cash

Total decrease in cash, restricted cash and cash equivalents

Total increase (decrease) in cash, restricted cash and cash equivalents

$ 85,110 $ (17,094)

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 used in operating activities for the nine months ended September 30, 2024 was $19.2 million compared to cash flows used in operating activities of $66.0 million for the nine months ended September 30, 2023.

The decrease in cash used in in operating activities was due to the settlement of claims through funds withheld in the nine months ended September 30, 2024 compared to the same respective period in 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 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.

Net cash provided by investing activities was $107.1 million for the nine months ended September 30, 2024 compared to net cash provided by investing activities of $51.1 million for the same period in 2023.

For the nine months ended September 30, 2024, the proceeds from the sales, maturities and calls exceeded the purchases of fixed maturity securities by $42.4 million compared to net proceeds from sales and maturities of $60.7 million for the same period in 2023.

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

Cash flows provided by investing activities for nine months ended September 30, 2024 included the proceeds from the sales and redemptions which exceeded the purchases of alternative investments.

There were net proceeds from sales and redemption of $65.1 million for alternative investments during the nine months ended September 30, 2024 compared to net purchases of alternative investments of $9.5 million for the same period in 2023.

Cash Flows used in Financing Activities

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.

Cash flows used in financing activities were $3.1 million for the nine months ended September 30, 2024 compared to $2.0 million for the same period in 2023.

During the nine months ended September 30, 2024, the Company repurchased 1,488,400 common shares at an average price of $1.95 per share for a total cost of $2.9 million under the Company's authorized common share repurchase plan.

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

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

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

1 unchanged sentence

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

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 June 30, 2024 and December 31, 2023.

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.

At September 30, 2024 and December 31, 2023, restricted cash and cash equivalents and fixed maturity investments used as collateral were $213.7 million and $219.9 million, respectively.

This collateral represents 60.5% and 75.0% of the fair value of total fixed maturity investments, cash, restricted cash and cash equivalents at September 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 June 30, 2024.

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

1 unchanged sentence

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

June 30, 2024 December 31, 2023

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

September 30, 2024 December 31, 2023

($ in thousands)

9 unchanged sentences

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 presently expect to continue to increase the amounts invested therein.

Under this revised investment policy, we had increased the amount of alternative investments held.

Previously, we had expected to continue to increase the amounts invested therein.

However, as our strategic plans continue to develop, we have begun to modify our approach to this investment policy, and began to reduce our investments and commitments to alternative investments under this policy.

The sales and redemptions of other investments including equity securities during the three months ended September 30, 2024 were part of a broader effort to reposition our balance sheet as part of ongoing group strategic initiatives while also strengthening overall liquidity.

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 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.

As of September 30, 2024, Maiden Reinsurance owns 30.9% 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 43,978,595 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.

Treasury shares include 44,367,323 common shares owned by Maiden Reinsurance consisting of 41,439,348 shares issued as part of the Exchange in 2022 and 2,927,975 common shares that were directly purchased on the open market by Maiden Reinsurance under the Company's authorized share repurchase plan to date.

The market value of our common shares held by Maiden Reinsurance due to the Exchange and common share repurchases was $78.5 million at September 30, 2024.

Cash & Cash Equivalents

At June 30, 2024, we consider the levels of cash and cash equivalents held to be within our targeted ranges.

At September 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 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)

The average yield and average duration of our fixed maturities, by asset class, and our cash and cash equivalents (restricted and unrestricted) are as follows at September 30, 2024 and December 31, 2023:

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

Treasury bond increased by 48 basis points to 4.36%.

During the nine months ended September 30, 2024, the yield on the 10-year U.S.

Treasury bond decreased by 7 basis points to 3.81%.

The 10-year U.S.

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

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.

Driven by a decrease in risk-free rates during the nine months ended September 30, 2024, our fixed maturity investment portfolio generated net unrealized gains of $3.9 million which increased our book value per common share by $0.04 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.

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

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

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

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

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

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

As of 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.

As of September 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 $4.3 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 June 30, 2024 and December 31, 2023, these respective durations in years were as follows:

June 30, 2024 December 31, 2023

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

September 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 2.5 1.6

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.

During the nine months ended September 30, 2024, the weighted average duration of our fixed maturity investment portfolio decreased by 0.4 years to 0.8 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 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.

At September 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 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

At September 30, 2024 and December 31, 2023, 43.6% and 40.8%, respectively, of our fixed income investments were comprised of floating rate securities which are detailed in the table below:

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

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

agency bond holdings are mortgage-backed.

agency MBS comprise 11.4% of our fixed maturity investment portfolio at June 30, 2024.

agency MBS comprise 11.1% of our fixed maturity investment portfolio at September 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 June 30, 2024 and December 31, 2023 were as follows:

June 30, 2024 December 31, 2023

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

September 30, 2024 December 31, 2023

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

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Agency MBS $ 24,958 100.0 % $ 26,651 100.0 %

At June 30, 2024 and December 31, 2023, 97.7% and 97.8%, respectively, of our fixed maturity investments consisted of investment grade securities.

At September 30, 2024 and December 31, 2023, 100.0% and 97.8%, respectively, of our fixed maturity investments consisted of investment grade securities.

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

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

The security holdings by sector and financial strength rating of our corporate bond holdings at 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

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

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

Corporate bonds

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— % — % 14.5 % — % $ 5,432 14.5 %

Communications

— % 7.3 % 33.1 % — % 15,179 40.4 %

— % 21.4 % 27.7 % — % 30,529 49.1 %

— % 1.4 % 2.7 % — % 2,567 4.1 %

Financial Institutions

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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 June 30, 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 September 30, 2024.

The Company's ten largest corporate holdings are 95.6% euro denominated, with 42.2% in the Consumer Sector and 42.7% in the Financial Institutions sector.

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

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

($ in thousands)

Anheuser-Busch INBEV SA, 2.875%, Due 9/25/2024 $ 10,686 4.9 % A-

Chubb Ina Holdings Inc., 1.55%, Due 3/15/2028 $ 6,921 3.1 % A

Molson Coors Beverage Co., 1.25%, Due 7/15/2024 5,351 2.4 % BBB

Utah Acquisition Sub Inc., 2.25%, Due 11/22/2024 5,556 2.5 % BBB-

PPG Industries Inc., 0.875%, Due 11/3/2025 5,432 2.4 % BBB+

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

Kellanova, 1.25%, Due 3/10/2025 4,410 1.9 % BBB

BNP Paribas SA, 1.25%, Due 3/19/2025 3,618 1.6 % A-

Vodafone Group PLC, 1.875%, Due 9/11/2025 2,838 1.3 % BBB

McKesson Corp., 1.5% Due 11/17/2025 2,738 1.2 % A-

Baxter International Inc., 1.3%, Due 5/30/2025 2,475 1.1 % BBB

Morgan Stanley, 1.875%, Due 4/27/2027 2,171 0.9 % A+

Aareal Bank AG, 0.625%, Due 2/14/2025 1,573 0.7 % AAA

Natwest Group PLC, 1.75%, Due 3/2/2026 1,106 0.5 % A-

$ 36,000 15.9 %

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

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

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

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

dollar denominated securities:

June 30, 2024 December 31, 2023

September 30, 2024 December 31, 2023

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

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dollar denominated securities $ 149,536 100.0 % $ 166,389 100.0 %

At September 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 nine months ended September 30, 2024.

At September 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 September 30, 2024 and December 31, 2023, respectively.

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 June 30, 2024 and December 31, 2023:

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

September 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 June 30, 2024 and December 31, 2023 consisted of the following asset categories:

June 30, 2024 December 31, 2023

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

September 30, 2024 December 31, 2023

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

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Total alternative investments $ 253,370 100.0 % $ 309,039 100.0 %

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.

Our allocation to alternative investments decreased to 41.7% of our total cash and investments as of September 30, 2024 compared to 51.3% as of December 31, 2023;

and decreased to 121.7% of our total shareholders' equity as of September 30, 2024 compared to 124.0% as of December 31, 2023.

Under this revised investment policy, we decreased the amount of alternative investments held at September 30, 2024 .

As noted previously, as our strategic plans continue to develop, we have begun to modify our approach to this investment policy, and began to reduce our investments and commitments to alternative investments under this policy.

We expect to invest the proceeds of these sales and redemptions in cash equivalent and short-term investment grade fixed income securities.

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

June 30, 2024 December 31, 2023

September 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 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.

As of September 30, 2024, $3.4 million or 5.6% of investments in the private equity asset class consisted of investments in private equity funds and $56.6 million or 94.4% 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 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.

As of September 30, 2024, $2.0 million or 100.0% of the private credit asset class 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 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.

As of September 30, 2024, $102.6 million or 98.4% of investments in the alternatives asset class were direct investments and $1.7 million or 1.6% of the alternatives asset class were invested in funds.

One investment in a collateralized direct lending entity of $81.0 million represents 77.6% of this asset class and is discussed further in "Note 4 — Investments" included in Part I Item 1.

"Financial Information" in this Quarterly Report on Form 10-Q for the six months ended June 30, 2024.

"Financial Information" in this Quarterly Report on Form 10-Q for the nine months ended September 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 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.

As of September 30, 2024, $9.1 million or 39.2% of investments in the venture capital asset class consisted of investments in funds and $14.2 million or 60.8% consisted of direct equity investments in start-up companies.

As of September 30, 2024, $13.4 million or 57.6% 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 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.

As of September 30, 2024, the Company has $26.3 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 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 of September 30, 2024, the Company has $31.1 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 June 30, 2024, the Company has $5.9 million invested in this project and to date has earned preferred returns and received certain distributions.

As of September 30, 2024, the Company has $6.5 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 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,

Our investment portfolio returns included in earnings decreased to $1.8 million and $28.8 million during the three and nine months ended September 30, 2024, respectively, compared to $11.5 million and $38.4 million for the same respective periods in 2023.

This was partly due to lower interest income earned on our funds withheld balance with AmTrust as claim payments were settled through the funds held receivable in 2024.

Also, it was due to net unrealized losses on our alternative investment portfolio for the three months ended September 30, 2024 as well as lower interest in income of equity method investments which decreased for the three and nine months ended September 30, 2024 compared to the same periods in 2023.

In addition, our alternative investment portfolio decreased by 18.0% during 2024 due to recent sales and redemptions of equity securities, private equity investments and private credit funds.

These sales produced net realized gains of $5.8 million during the third quarter of 2024 as shown in the table below and were part of a broader effort to reposition our balance sheet as part of ongoing group strategic initiatives that we are actively pursuing while also strengthening our overall liquidity.

The alternative investment portfolio produced a positive net return of 4.1% in 2024 compared to 5.0% for the same period in 2023.

This was partly due to $1.6 million of fees incurred related to sales and redemptions in the third quarter of 2024.

The following table summarizes our investment results for the three and nine months ended September 30, 2024 and 2023:

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

($ in thousands) 2024 2023 2024 2023

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Total net investment income 4,878 9,048 19,531 29,111

Net realized (losses) gains:

Net realized gains (losses):

Fixed income assets (1)

1 unchanged sentence

Other investments, including equities 5,815 — 5,815 186

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

Net unrealized gains:

Total net realized gains (losses) 5,386 (301) 5,091 (901)

Net unrealized gains (losses):

Other investments, including equities (9,190) 545 1,312 3,295

Total net unrealized gains

Total net unrealized (losses) gains

(9,190) 545 1,312 3,295

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Interest in income of equity method investments

751 2,190 2,820 6,942

Interest in income of equity method investments

751 2,190 2,820 6,942

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 and six months ended June 30, 2024 and 2023:

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

Fixed Income Investments (1)

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

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

($ in thousands) 2024 2023 2024 2023

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Net Investment Returns 1.5 % 1.1 % 3.7 % 3.3 %

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.

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 June 30, 2024 and 2023.

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

Our net investment returns increased to 1.5% and 3.7% for the three and nine months ended September 30, 2024, respectively, compared to 1.1% and 3.3% for the respective periods in 2023.

This was largely due to floating rate investments that comprised 43.6% of our fixed income investments at September 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% for the three and nine months ended September 30, 2024, respectively, compared to 7.3% and 6.9% 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 much lower average ending balances of $8.9 million and $51.8 million during the three and nine months ended September 30, 2024 compared to average ending balances of $250.0 million and $317.1 million for the respective periods in 2023.

This was driven by using the funds withheld receivable for claim payments to AmTrust as the runoff of existing loss reserves continues in the terminated AmTrust Quota Share and the European Hospital Liability Quota Share agreements, with the balance of funds withheld now fully exhausted at September 30, 2024.

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

Alternative Investments (2)

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

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

($ in thousands) 2024 2023 2024 2023

Gross investment income $ 1,998 $ 3,338 $ 6,484 $ 10,678

Net realized and unrealized gains

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

Net realized gains 5,815 — 5,815 186

Net unrealized (losses) gains (9,190) 545 1,312 3,295

Gross investment returns $ (1,377) $ 3,883 $ 13,611 $ 14,159

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GAAP consolidated financial statements.

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

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

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

($ in thousands)

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Annualized Gross Returns 19.5 % 6.6 % 1.8 % 3.0 % (0.1) % 6.5 %

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

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

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

($ in thousands)

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Annualized Gross Returns 9.7 % 9.1 % 4.1 % 8.2 % 2.7 % (0.2) % 6.7 %

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.

During the nine months ended September 30, 2024, on an inception to date basis through September 30, 2024, our active alternative investments have now produced an internal rate of return of 4.0% and a multiple on invested capital of 1.10.

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 54.6% of our total alternative assets as of September 30, 2024.

Excluding the investments still carried at cost, the internal rate of return was 9.6% with a multiple on invested capital of 1.22.

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

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

Asset Class September 30, 2024 Total Direct Fund

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

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• 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 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.

During the nine months ended September 30, 2024, private equity investments produced a total investment return of $10.4 million with fund investments earning $0.9 million while direct investments produced a total investment return of $9.6 million.

Inception to date, private equity investments have produced an internal rate of return of 10.5% and a multiple on invested capital of 1.33;

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.

fund investments produced an internal rate of return of 11.0% and a multiple on invested capital of 1.26, and direct investments have produced an internal rate of return of 10.2% and a multiple on invested capital of 1.37.

Net realized gains of $9.0 million on private equity investments have been recognized through September 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 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.

During the nine months ended September 30, 2024, private credit investments produced a total investment return of $1.4 million with fund investments earning $1.0 million while direct investments produced a total investment return of $0.4 million.

Inception to date, private credit investments have produced an internal rate of return of 5.2% and a multiple on invested capital of 1.10, with fund investments producing an internal rate of return of 4.9% and a multiple on invested capital of 1.10, while direct investments have produced an internal rate of return of 12.1% and a multiple on invested capital of 1.18.

• 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 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;

During the nine months ended September 30, 2024, alternative investments produced a total investment return of $1.4 million.

Inception to date, alternative direct investments have produced an internal rate of return of 4.8% and a multiple on invested capital of 1.12;

in total, alternative fund investments have produced an internal rate of return of (7.9)% and a multiple on invested capital of 0.92.

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 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.

these investments represent 77.6% of the alternative investment class at September 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 six months ended June 30, 2024, our venture capital investments produced a total return of $0.7 million entirely from our fund investments.

During the nine months ended September 30, 2024, our venture capital investments produced a total return of $0.5 million entirely from our fund investments.

Inception to date, venture capital investments have produced an internal rate of return of 7.6% and a multiple on invested capital of 1.19;

venture capital fund investments have produced an internal rate of return of (10.1)% and a multiple on invested capital of 0.82, while direct venture capital investments have produced an internal rate of return of 13.1% and a multiple on invested capital of 1.46.

Through June 30, 2024, we realized total gains of $4.8 million on the sale of the Company’s stake in Betterview Marketplace, Inc.

Through September 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.

4 unchanged sentences

To date these investments have produced an internal rate of return of (2.1)% and a multiple on invested capital of 0.96.

On an inception to date basis through September 30, 2024, the Company completed various alternative investments that had total contributions of $152.1 million which produced an internal rate of return of 8.3% and a multiple on invested capital of 1.18.

The total returns on these inactive alternative investments by asset class from inception are shown in detail as of September 30, 2024 in the table below:

Asset Class September 30, 2024 Total Completed Investments

($ in thousands) Contributions IRR MOIC (x)

Private Equity $ 42,813 6.6 % 1.16

Private Credit 68,990 5.0 % 1.10

Hedge Funds 25,000 5.2 % 1.12

Alternatives 11,358 48.9 % 1.55

Venture Capital 3,925 14.3 % 2.22

Total $ 152,086 8.3 % 1.18

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

Other Balance Sheet Changes

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

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

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

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

Deferred commission and other acquisition expenses

8 unchanged sentences

90,321 73,240 17,081 23.3 %

Liability for investments purchased

10,980 — 10,980 NM

Accrued expenses and other liabilities

73,994 28,244 45,750 162.0 %

The Company's deferred commission and other acquisition expenses decreased by 47.5% and unearned premiums decreased by 26.8% 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 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.

Also, deferred commission and other acquisition expenses decreased due to accelerated amortization upon the recognition of a premium deficiency of $3.7 million in the AmTrust Reinsurance segment.

Funds withheld receivable decreased by 89.7% 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 nine months ended September 30, 2024.

The funds withheld receivable balance with AmTrust has been fully exhausted in the third quarter of 2024.

The Company's reserve for loss and LAE decreased by 16.8% primarily due to continued settlement of loss reserves for AmTrust Reinsurance contracts.

The deferred gain on retroactive reinsurance increased by $17.1 million or 23.3% compared to December 31, 2023 driven by net adverse reserve development of $21.9 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.

The adverse development was offset by 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 $5.2 million for the nine months ended September 30, 2024.

Accrued expenses and other liabilities increased by $45.8 million for the nine months ended September 30, 2024 primarily due to accrual of reinsurance losses payable due to AmTrust, and the liability for investments purchased increased by $11.0 million due to trades occurring on or before September 30, 2024 that will be settled subsequent to that date.

Capital Resources

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.

During the nine months ended September 30, 2024, book value per common share decreased by 15.7% to $2.09 and diluted book value per common share decreased by 16.7% to $2.05, compared to December 31, 2023.

This was largely due to the net loss of $43.0 million reported by the Company, which produced substantially all of the $41.0 million decline in shareholders' equity for the nine months ended September 30, 2024.

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

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 (%)

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

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

($ in thousands)

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Total capital resources decreased by $41.0 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 $1.5 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 increased by $8.5 million due to the net loss reported for the six months ended June 30, 2024;

• accumulated deficit increased by $43.0 million due to the net loss reported for the nine months ended September 30, 2024;

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

• net increase in AOCI of $3.7 million which arose due to:

(1) net unrealized gains on investment of $3.9 million mainly from our AFS bond portfolio relating to market price movements in the nine months ended September 30, 2024, offset by (2) a decrease in foreign currency translation adjustment of $0.2 million in the nine months ended September 30, 2024 due to the impact of the U.S.

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

• treasury shares increased by $3.1 million due to $2.9 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.

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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 June 30, 2024 and December 31, 2023 were as follows:

($ in thousands except share and per share data) June 30, 2024 December 31, 2023

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

($ in thousands except share and per share data) September 30, 2024 December 31, 2023

Ending common shareholders’ equity

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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.

During the three and nine months ended September 30, 2024, Maiden Reinsurance repurchased 388,728 and 1,488,400 common shares from the open market at an average price per share of $1.65 and $1.95, respectively, under the Company's share repurchase plan.

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

The Company's remaining authorization for common share repurchases is $68.7 million at September 30, 2024.

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

The Company did not enter into any short-term borrowing arrangements during the nine months ended September 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 June 30, 2024.

The Company has a remaining authorization of $99.9 million for such repurchases at September 30, 2024.

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

2 unchanged sentences

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 $56.3 million to Maiden NA as of June 30, 2024.

Subsequent to those approvals, Maiden Reinsurance paid total dividends of $62.5 million to Maiden NA as of September 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 June 30, 2024 and for the three and six months ended June 30, 2024 were as follows:

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

Maiden NA Maiden Holdings

11 unchanged sentences

(7,795) (30,698)

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

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

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

Senior notes - principal amount

13 unchanged sentences

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

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.

As discussed above, at September 30, 2024, guarantees of $69.8 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.

3 unchanged sentences

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

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.

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

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

GAAP financial measure as follows:

For the Three Months Ended June 30, 2024 2023

For the Three Months Ended September 30, 2024 2023

($ in thousands except per share data)

1 unchanged sentence

Add (subtract):

Net realized and unrealized investment gains

Net realized and unrealized investment losses (gains)

Foreign exchange and other losses (gains)

5,915 (4,594)

Foreign exchange and other losses

Interest in income of equity method investments

1 unchanged sentence

Change in deferred gain on retroactive reinsurance under the LPT/ADC Agreement 9,818 (1,192)

Non-GAAP operating (loss) earnings

Non-GAAP operating loss

$ (15,682) $ (11,747)

2 unchanged sentences

Add (subtract):

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

Foreign exchange and other losses — 0.02

Net realized and unrealized investment losses (gains) 0.04 (0.01)

Foreign exchange and other losses (gains) 0.06 (0.05)

Interest in income of equity method investments (0.01) (0.02)

Change in deferred gain on retroactive reinsurance under the LPT/ADC Agreement 0.10 (0.01)

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

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

$ (0.16) $ (0.12)

For the Six Months Ended June 30, 2024 2023

For the Nine Months Ended September 30, 2024 2023

($ in thousands except per share data)

3 unchanged sentences

(6,403) (2,394)

Foreign exchange and other (gains) losses

(2,053) 5,437

Foreign exchange and other losses

Interest in income of equity method investments

7 unchanged sentences

Net realized and unrealized investment gains (0.06) (0.02)

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

Foreign exchange and other losses 0.04 0.01

Interest in income of equity method investments (0.03) (0.07)

2 unchanged sentences

$ (0.31) $ (0.15)

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 operating loss was $15.7 million for the three months ended September 30, 2024 compared to a non-GAAP operating loss of $11.7 million for the same period in 2023.

The non-GAAP operating results were primarily driven by weak non-GAAP underwriting results in the AmTrust Reinsurance segment as discussed further below.

Non-GAAP operating loss was $31.2 million for the nine months ended September 30, 2024, compared to a non-GAAP operating loss of $15.2 million for the same period in 2023.

The non-GAAP operating loss in both respective years were primarily driven by weak non-GAAP underwriting results in the AmTrust Reinsurance segment as discussed further below.

Non-GAAP Underwriting Results

The non-GAAP underwriting results for the three and 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,

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

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

($ in thousands) 2024 2023 2024 2023

2 unchanged sentences

Net premiums earned $ 13,403 $ 12,479 $ 37,888 $ 32,520

Other insurance revenue, net — 78 46 19

Other insurance (expense) revenue , net — (16) 46 3

Non-GAAP net loss and LAE (1)

4 unchanged sentences

$ (8,933) $ (12,102) $ (18,935) $ (17,317)

(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.

(1) Non-GAAP underwriting loss and non-GAAP net loss and LAE for the three and nine months ended September 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 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,

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

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

($ in thousands) 2024 2023 2024 2023

1 unchanged sentence

AmTrust Reinsurance underwriting loss (17,804) (8,369) (32,044) (20,777)

adverse prior year loss development covered under the LPT/ADC Agreement 2,287 10,727 7,287 12,300

adverse (favorable) prior year loss development covered under the LPT/ADC Agreement 9,818 (1,192) 17,105 11,108

Non-GAAP AmTrust Reinsurance underwriting loss (7,986) (9,561) (14,939) (9,669)

1 unchanged sentence

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 $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:

As shown in the table above, adjusted for the increase in the deferred gain under the LPT/ADC Agreement of $9.8 million and $17.1 million during the three and nine months ended September 30, 2024, respectively, the non-GAAP underwriting loss was $8.9 million and $18.9 million, respectively.

These results compared to non-GAAP underwriting loss of $12.1 million and underwriting loss of $17.3 million when adjusted for the decrease in the deferred gain under the LPT/ADC Agreement of $1.2 million and increase of $11.1 million in the three and nine months ended September 30, 2023, respectively.

The non-GAAP underwriting loss of $8.9 million and $18.9 million for the three and nine months ended September 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 $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.

• adverse loss development of $— million and $2.6 million for the three and nine months ended September 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 $2.0 million and $5.2 million for the three and nine months ended September 30, 2024;

• underwriting loss of $0.9 million and $4.0 million in the Diversified Reinsurance segment for the three and nine months ended September 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 $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 June 30, For the Six Months Ended June 30,

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 $9.8 million and $17.1 million for the three and nine months ended September 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 increased by $1.2 million and decreased by $11.1 million for the three and nine months ended September 30, 2023, respectively.

These adjustments for PPD under the AmTrust Quota Share which is fully recoverable from Cavello under the LPT/ADC Agreement are reflected in the calculation of non-GAAP Loss and LAE below:

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

($ in thousands) 2024 2023 2024 2023

1 unchanged sentence

$ 19,857 $ 15,156 $ 45,453 $ 36,503

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

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

9,818 (1,192) 17,105 11,108

2 unchanged sentences

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 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;

The Adjusted Shareholders' Equity, Adjusted Total Capital Resources and Adjusted Book Value per Common Share at September 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 $88.0 million at September 30, 2024 compared to $70.9 million at December 31, 2023;

this increase is attributable to $17.1 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 $10.1 million was reported for policies under the AmTrust Quota Share for the six months ended June 30, 2024.

Net adverse development of $21.9 million was reported for policies under the AmTrust Quota Share for the nine months ended September 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.

1 unchanged sentence

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 June 30, 2024 and December 31, 2023:

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

($ in thousands) September 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 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,

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

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

($ in thousands) 2024 2023 2024 2023

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

Non-GAAP operating loss

$ (15,682) $ (11,747) $ (31,236) $ (15,173)

Opening adjusted shareholders’ equity 316,249 326,998 320,076 329,987

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 June 30, 2024 and December 31, 2023 was computed as follows:

June 30, 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 September 30, 2024 and December 31, 2023 was computed as follows:

September 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 June 30, 2024 and December 31, 2023 was computed as follows:

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

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

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

Senior notes - principal amount

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To the extent that these exposures are not fully hedged or the hedges are ineffective, our results of operations or equity may be adversely affected.

At June 30, 2024, no such hedges or hedging strategies were in force or had been entered into.

At September 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.

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

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.

Net foreign exchange losses of $5.9 million and $3.9 million were generated during the three and nine months ended September 30, 2024, respectively, compared to net foreign exchange gains of $4.6 million and losses of $0.1 million for the three and nine months ended September 30, 2023.

The foreign exchange losses for the three and nine months ended September 30, 2024 and the nine months ended September 30, 2023 was largely due to a depreciation in the value of the U.S.

dollar relative to the euro and the British pound.

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.

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

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

At September 30, 2024, the decrease in foreign currency translation adjustments of $0.2 million for the nine months ended September 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 September 30, 2024 included reserve for net loss and LAE of $258.4 million.

Our foreign currency asset exposures at September 30, 2024 include $149.5 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, $31.1 million of equity method real estate investments denominated in Canadian dollars, as well as $14.8 million of funds withheld receivable.

Effects of Inflation

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Off-Balance Sheet Arrangements

At June 30, 2024, we did not have any off-balance sheet arrangements as defined by Item 303(a) (4) of Regulation S-K.

At September 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

See " Part I, Item 1 - Notes to Condensed Consolidated Financial Statements (unaudited) Note 2.

Significant Accounting Policies " for a discussion on recently issued accounting pronouncements not yet adopted.

Significant Accounting Policies " for a discussion on recently adopted accounting pronouncements.

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