Maiden Holdings, Ltd. 10-Q

Item 1. Financial Statements MAIDEN HOLDINGS, LTD. CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands of U.S. dollars, except share and per share data) March 31, 2025 December 31, 2024 ASSETS (Unaudited) (Audited) Investments: Fixed maturities, available-for-sale, at fair value (Amortized cost: 2025 - $ 205,909 ; 2024 - $ 236,788 ) $ 202,460 $ 232,613 Equity securities, at fair value (Cost: 2025 - $ 13,436 ; 2024 - $ 13,436 ) 11,850 13,147 Equity method investments 78,841 81,287 Other investments (Allowance for expected credit losses: 2025 - $ 1,023 ; 2024 - $ 1,023 ) 163,558 157,016 Total investments 456,709 484,063 Cash and cash equivalents 28,706 25,651 Restricted cash and cash equivalents 15,562 9,084 Accrued investment income 3,741 3,346 Reinsurance balances receivable, net (includes $ 6,494 and $ 5,171 from related parties in 2025 and 2024, respectively. Allowance for expected credit losses: 2025 - $ 203 ; 2024 - $ 169 ) 9,103 8,159 Reinsurance recoverable on unpaid losses (Allowance for expected credit losses: 2025 - $ 849 ; 2024 - $ 2,963 ) 549,350 571,331 Net loan receivable from related party 128,118 167,975 Deferred commission and other acquisition expenses (includes $ 4,948 and $ 7,553 from related parties in 2025 and 2024, respectively) 5,524 8,102 Funds withheld receivable (Allowance for expected credit losses: 2025 - $ 8 ; 2024 - $ 8 ) 12,606 12,650 Other assets 5,527 4,830 Assets held for sale 19,638 20,815 Total assets $ 1,234,584 $ 1,316,006 LIABILITIES Reserve for loss and loss adjustment expenses (includes $ 656,022 and $ 687,274 from related parties in 2025 and 2024, respectively) $ 757,286 $ 793,679 Unearned premiums (includes $ 25,578 and $ 29,204 from related parties in 2025 and 2024, respectively) 26,196 29,793 Deferred gain on retroactive reinsurance 106,268 107,255 Liability for securities purchased — 6,480 Accrued expenses and other liabilities (includes $ 31,647 and $ 59,096 from related parties in 2025 and 2024, respectively) 51,818 77,966 Senior notes - principal amount 262,361 262,361 Less: unamortized debt issuance costs 7,563 7,604 Senior notes, net 254,798 254,757 Liabilities held for sale 645 883 Total liabilities 1,197,011 1,270,813 Commitments and Contingencies EQUITY Common shares ($ 0.01 par value; 2025: 151,310,133 and 2024: 150,298,798 shares issued; 2025: 99,682,710 and 2024: 99,039,253 shares outstanding) 1,513 1,503 Additional paid-in capital 888,575 888,067 Accumulated other comprehensive loss ( 31,930 ) ( 32,733 ) Accumulated deficit ( 696,559 ) ( 687,914 ) Treasury shares, at cost (2025: 51,627,423 shares and 2024: 51,259,545 shares) ( 124,026 ) ( 123,730 ) Total shareholders’ equity 37,573 45,193 Total liabilities and equity $ 1,234,584 $ 1,316,006 See accompanying notes to the unaudited Condensed Consolidated Financial Statements. 3 MAIDEN HOLDINGS, LTD. CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) (in thousands of U.S. dollars, except per share data) For the Three Months Ended March 31, 2025 2024 Revenues Gross premiums written $ 4,074 $ 8,323 Net premiums written $ 4,049 $ 8,314 Change in unearned premiums 3,635 4,094 Net premiums earned 7,684 12,408 Other insurance revenue, net — 46 Net investment income 3,034 7,700 Net realized and unrealized investment gains 3,331 8,750 Total revenues 14,049 28,904 Expenses Net loss and loss adjustment expenses ( 7,623 ) 11,625 Commission and other acquisition expenses 4,558 5,593 General and administrative expenses 10,773 8,060 Interest and amortization expenses 4,818 4,815 Foreign exchange and other losses (gains) 7,434 ( 2,053 ) Total expenses 19,960 28,040 Net (loss) income before income taxes and interest in (loss) income of equity method investments ( 5,911 ) 864 Less: income tax expense 12 11 Interest in (loss) income of equity method investments ( 2,722 ) 606 Net (loss) income $ ( 8,645 ) $ 1,459 Basic and diluted (loss) earnings per share attributable to common shareholders $ ( 0.09 ) $ 0.01 Weighted average number of common shares - basic and diluted 99,120,644 100,457,125 See accompanying notes to the unaudited Condensed Consolidated Financial Statements. 4 MAIDEN HOLDINGS, LTD. CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) (in thousands of U.S. dollars) For the Three Months Ended March 31, 2025 2024 Net (loss) income $ ( 8,645 ) $ 1,459 Other comprehensive income (loss) Net unrealized holdings gains on AFS fixed maturity investments 729 1,018 Net unrealized gains on held for sale AFS fixed maturity investments 23 — Adjustment for reclassification of net realized gains recognized in net (loss) income ( 3 ) — Foreign currency translation adjustment 54 ( 1,736 ) Other comprehensive income (loss), before tax 803 ( 718 ) Income tax expense related to components of other comprehensive income — ( 4 ) Other comprehensive income (loss), after tax 803 ( 722 ) Comprehensive (loss) income $ ( 7,842 ) $ 737 See accompanying notes to the unaudited Condensed Consolidated Financial Statements. 5 MAIDEN HOLDINGS, LTD. CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Unaudited) (in thousands of U.S. dollars) For the Three Months Ended March 31, 2025 2024 Common shares Beginning balance $ 1,503 $ 1,497 Issuance of common shares from vesting of stock based compensation 10 4 Ending balance 1,513 1,501 Additional paid-in capital Beginning balance 888,067 886,072 Issuance of common shares from vesting of stock based compensation ( 10 ) ( 4 ) Share-based compensation expense 518 364 Ending balance 888,575 886,432 Accumulated other comprehensive loss Beginning balance ( 32,733 ) ( 31,469 ) Change in net unrealized investment gains 749 1,014 Foreign currency translation adjustment 54 ( 1,736 ) Ending balance ( 31,930 ) ( 32,191 ) Accumulated deficit Beginning balance ( 687,914 ) ( 486,945 ) Net (loss) income ( 8,645 ) 1,459 Ending balance ( 696,559 ) ( 485,486 ) Treasury shares Beginning balance ( 123,730 ) ( 119,995 ) Shares repurchased ( 296 ) ( 901 ) Ending balance ( 124,026 ) ( 120,896 ) Total shareholders' equity $ 37,573 $ 249,360 See accompanying notes to the unaudited Condensed Consolidated Financial Statements. 6 MAIDEN HOLDINGS, LTD. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (in thousands of U.S. dollars) For the Three Months Ended March 31, 2025 2024 Cash flows from operating activities Net (loss) income $ ( 8,645 ) $ 1,459 Adjustments to reconcile net (loss) income to net cash flows from operating activities: Other non-cash expenses including depreciation, amortization and share-based compensation ( 6,065 ) ( 479 ) Interest in loss (income) of equity method investments 2,722 ( 606 ) Net realized and unrealized investment gains ( 3,331 ) ( 8,750 ) Change in allowance for expected credit losses ( 2,086 ) ( 842 ) Foreign exchange and other losses (gains) 7,434 ( 2,053 ) Changes in assets – (increase) decrease: Reinsurance balances receivable, net ( 779 ) 673 Reinsurance recoverable on unpaid losses 3,266 692 Accrued investment income ( 282 ) 573 Deferred commission and other acquisition expenses 2,588 1,539 Funds withheld receivable 44 14,325 Other assets ( 729 ) ( 707 ) Changes in liabilities – increase (decrease): Reserve for loss and loss adjustment expenses ( 8,301 ) 4,131 Unearned premiums ( 3,622 ) ( 4,088 ) Accrued expenses and other liabilities ( 3,340 ) 2,182 Net cash (used in) provided by operating activities ( 21,126 ) 8,049 Cash flows from investing activities: Purchases of fixed maturities ( 119,473 ) ( 165,478 ) Purchases of other investments ( 3,845 ) ( 8,204 ) Purchases of equity method investments ( 737 ) ( 2,849 ) Proceeds from sales of fixed maturities 1,788 23,835 Proceeds from maturities, paydowns and calls of fixed maturities 149,463 130,876 Proceeds from sale and redemption of other investments 1,933 466 Proceeds from sale and redemption of equity method investments 369 1,740 Others, net ( 21 ) ( 122 ) Net cash provided by (used in) investing activities 29,477 ( 19,736 ) Cash flows from financing activities: Repurchase of common shares — ( 673 ) Net cash used in financing activities — ( 673 ) Effect of exchange rate changes on foreign currency cash, restricted cash and cash equivalents 809 ( 148 ) Net increase (decrease) in cash, restricted cash and cash equivalents 9,160 ( 12,508 ) Cash, restricted cash and cash equivalents, beginning of period 34,735 42,678 Cash, restricted cash and cash equivalents, end of period 43,895 30,170 Less: change in cash and cash equivalents held for sale ( 373 ) — Cash, restricted cash and cash equivalents, end of period, excluding held-for-sale $ 44,268 $ 30,170 Reconciliation of cash and restricted cash reported within Condensed Consolidated Balance Sheets: Cash and cash equivalents, end of period $ 28,706 $ 20,721 Restricted cash and cash equivalents, end of period 15,562 9,449 Total cash, restricted cash and cash equivalents, end of period $ 44,268 $ 30,170 See accompanying notes to the unaudited Condensed Consolidated Financial Statements. 7 MAIDEN HOLDINGS, LTD. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (in thousands of U.S. dollars, except share and per share data) 1. Basis of Presentation The accompanying unaudited Condensed Consolidated Financial Statements include the accounts of Maiden Holdings, Ltd. ("Parent Company" or "Maiden Holdings") and its subsidiaries (the "Company" or "Maiden"). They have been prepared in accordance with accounting principles generally accepted in the United States ("U.S. GAAP") for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X as promulgated by the U.S. Securities and Exchange Commission ("SEC"). Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. All significant intercompany transactions and accounts have been eliminated. These interim unaudited Condensed Consolidated Financial Statements reflect all adjustments that are, in the opinion of management, necessary for a fair presentation of the results for the interim period and all such adjustments are of a normal recurring nature. The results of operations for the interim period are not necessarily indicative, if annualized, of those to be expected for the full year. The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. These unaudited Condensed Consolidated Financial Statements, including these notes, should be read in conjunction with the Company's audited Consolidated Financial Statements and related notes included in the Company's Annual Report on Form 10-K for the year ended December 31, 2024. Certain prior year comparatives have been reclassified to conform to the current period presentation. The effect of these reclassifications had no impact on previously reported shareholders' equity or net income. Maiden creates shareholder value by actively managing and allocating our assets and capital, including through ownership and management of businesses and assets primarily in the insurance and related financial services industries where we can leverage our deep knowledge of those markets. As of March 31, 2025, Maiden Reinsurance Ltd. (“Maiden Reinsurance”) owns approximately 31.0 % of the Company's total outstanding common shares, which is eliminated for accounting and financial reporting purposes on the Company's consolidated financial statements. The voting power of Maiden Reinsurance, with respect to its common shares, was capped at 9.5 % pursuant to the Company's bye-laws. However, on April 29, 2025, Maiden shareholders approved the proposal to remove the 9.5 % voting limitation at the Company's special general meeting of its shareholders (the "Special Meeting"). The ownership of the common shares by Maiden Reinsurance was made in compliance with Maiden Reinsurance's investment policy and approved by the Vermont Department of Financial Regulation ("Vermont DFR"). Current Operations The Company does not presently underwrite prospective reinsurance risks. Short-term income protection business is written on a primary basis by our wholly owned subsidiaries Maiden Life Försäkrings AB ("Maiden LF") and Maiden General Försäkrings AB ("Maiden GF") in the Scandinavian and Northern European markets. Our wholly owned subsidiary, Maiden Global Holdings Ltd. (“Maiden Global”) is a licensed intermediary in the United Kingdom. Maiden Global had previously operated internationally by providing branded auto and credit life insurance products through insurer partners, particularly those in Europe and other global markets ("IIS business"). These products also produced reinsurance programs which were underwritten by our wholly owned subsidiary Maiden Reinsurance. The Company also has various historic reinsurance programs underwritten by Maiden Reinsurance which are in run-off, including the liabilities associated with AmTrust Financial Services, Inc. ("AmTrust") reinsurance agreements which were terminated in 2019 as discussed in Note 10. Related Party Transactions . In addition, the Company has a retroactive reinsurance agreement and a commutation agreement that further reduces its exposure and limits the potential volatility related to AmTrust liabilities, which are discussed in Note 8. Reinsurance . Please also see the Company's audited Consolidated Financial Statements, and related notes thereto, included in the Company's Annual Report on Form 10-K for the year ended December 31, 2024 for further details. The Company is also running off certain business related to its Genesis Legacy Solutions ("GLS") platform. In November 2020, the Company formed its indirect wholly owned subsidiary GLS, which specialized in providing a full range of legacy services to small insurance entities, particularly those in run-off or with blocks of reserves that are no longer core to those companies' operations, working with clients to develop and implement finality solutions including acquiring entire companies. The Company believed the formation of GLS was highly complementary to its overall longer-term strategy. However, a combination of factors, including market conditions in the sector GLS focuses on, resulted in an inability for GLS to gain sufficient scale to achieve its objectives or earn a profit, and GLS results did not reach the objectives the Company expected it to over time. Having completed the capital commitment made to GLS in November 2020, the Company has determined to not commit any additional capital to new opportunities and to run-off the existing accounts underwritten by GLS. During the three months ended March 31, 2025, the Company has agreed to commute one of the accounts underwritten by GLS for $ 7,500 . Approval of this transaction by the Vermont DFR is presently pending. The commutation will be fully reflected in the second quarter 2025 financial statements at such time as the transaction is approved by the Vermont DFR and the related reserves are transferred to the purchasing party. During 2024, the Company entered into a series of strategic transactions that, upon completion, will substantially transform its business plan and operations, which are fully described in the Company's Annual Report on Form 10-K for the year ended December 31, 2024 that was filed on March 10, 2025. 8 MAIDEN HOLDINGS, LTD. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (in thousands of U.S. dollars, except share and per share data) 1. Basis of Presentation (continued) Divestiture of IIS Business and Swedish Subsidiaries During 2024, we conducted and completed a strategic review of our IIS Business. The purpose of that review was to evaluate the strategic value of this business, including the operations of Maiden LF and Maiden GF in relation to their ongoing growth and profitability prospects, regulatory capital requirements and ability to create shareholder value in excess of the Company's target return on capital levels. As a result of that review, we concluded that divesting this business was in the best interests of shareholders and subsequently entered into the following transactions to accomplish that objective: 1) two Renewal Rights and Asset Purchase Agreement with AmTrust Nordic AB (“AmTrust Renewal Rights Agreements”); and 2) a Stock Purchase Agreement to sell Maiden LF and Maiden GF (“Swedish Subsidiaries Sale”). On November 29, 2024, the Company entered into an agreement to sell its Swedish subsidiaries, Maiden LF and Maiden GF to an expanding group of international insurance and reinsurance companies headquartered in the United Kingdom. Such transaction is subject to customary regulatory approvals. The sale will be an all-cash transaction and pursuant to the terms of the agreement, all existing staff of both Maiden LF and Maiden GF will transition to the new ownership group. As part of these transactions, Maiden LF and Maiden GF are no longer writing new business and their non-underwriting related assets and liabilities are represented as held-for-sale in our consolidated financial statements. Please see Note 10. Related Party Transactions for details regarding the AmTrust Renewal Rights Agreement and Note 14. Assets Held for Sale for further information on the Swedish Subsidiaries Sale. Combination Agreement with Kestrel Group On December 29, 2024, the Company entered into a combination agreement (as amended, "Combination Agreement") with Kestrel Group LLC (“Kestrel”), all of the equityholders of Kestrel, Ranger U.S. Newco LLC, Ranger Bermuda Merger Sub Ltd., Ranger Bermuda Topco Ltd. ("Bermuda NewCo") and Ranger Merger Sub 2 LLC to combine and form a new, publicly listed specialty program group ("transaction"). AmTrust is a significant shareholder of Kestrel. Please see Note 10. Related Party Transactions for further information regarding the Company's relationship with AmTrust. Pursuant to the terms of the Combination Agreement, at the closing of the transaction, each issued and outstanding common share of Maiden, par value $ 0.01 per share, will be automatically canceled and converted into the right to receive one-twentieth ( 0.05 ) of a common share in Bermuda NewCo, a newly formed Bermuda company that will acquire both Maiden and Kestrel (the “combined company”). The equityholders of Kestrel at the closing will receive an aggregate of $ 40.0 million in upfront cash and 2,750,000 common shares of the combined company. In addition, the equityholders of Kestrel are entitled to receive contingent consideration up to the lesser of (x) $ 45.0 million payable in common shares of Bermuda NewCo upon the achievement of certain financial milestones, and (y) $ 2.75 million common shares of Bermuda NewCo. At the closing of the transaction, the combined company will be rebranded as Kestrel Group and its common shares will be listed on the NASDAQ Capital Market ("Nasdaq") under the symbol “KG,” subject to official notice of issuance. Following closing of the transaction, Kestrel will continue to write business through its use of A.M. Best A- FSC XV insurance carriers including Sierra Specialty Insurance Company, Rochdale Insurance Company, Park National Insurance Company, and Republic Fire and Casualty Insurance Company (collectively, the “Insurers”), all subsidiaries of AmTrust. In connection with the transaction, the combined company will have the option to acquire the Insurers from AmTrust. Following completion of the transaction, the board of directors of the combined company will consist of seven directors, made up of four directors selected by an affiliate of Kestrel Intermediate Ledbetter Holdings LLC, two of whom will be independent under applicable securities laws and stock exchange rules, and three directors selected by AmTrust, two of whom will be independent under applicable securities laws and stock exchange rules. On April 29, 2025, at a Special Meeting of shareholders, all proposals related to Maiden’s proposed business combination with Kestrel were approved by Maiden’s shareholders. The transaction remains subject to customary closing conditions, the approval of listing of the shares of the combined company on the Nasdaq (subject to official notice of issuance) and receiving the final regulatory approvals. Closing is currently expected to occur during the second quarter of 2025. 2. Significant Accounting Policies There have been no material changes to the significant accounting policies as described in the Company's Annual Report on Form 10-K for the year ended December 31, 2024 . 9 MAIDEN HOLDINGS, LTD. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (in thousands of U.S. dollars, except share and per share data) 3. Segment Information The Company currently has two reportable segments: Diversified Reinsurance and AmTrust Reinsurance. Our Diversified Reinsurance segment consists of a portfolio of predominantly property and casualty reinsurance business focusing on regional and specialty property and casualty insurance companies located primarily in Europe. This segment also includes transactions entered into by GLS as described in Note 1. Basis of Presentation. Our AmTrust Reinsurance segment includes all business ceded to Maiden Reinsurance by AmTrust, primarily the quota share reinsurance agreement (“AmTrust Quota Share”) between Maiden Reinsurance and AmTrust’s wholly owned subsidiary, AmTrust International Insurance, Ltd. (“AII”) and the European hospital liability quota share reinsurance contract ("European Hospital Liability Quota Share") with AmTrust’s wholly owned subsidiaries, AmTrust Europe Limited ("AEL") and AmTrust International Underwriters DAC ("AIU DAC"), which are both in run-off effective January 1, 2019. Please refer to Note 10. Related Party Transactions for additional information regarding the AmTrust Reinsurance segment. The Company evaluates segment performance based on segment profit separately from the results of our investment portfolio. Underwriting income or loss is calculated as net premiums earned plus other insurance revenue less net loss and LAE, commission and other acquisition expenses. General and administrative expenses are allocated to the segments on an actual basis except salaries and benefits where management’s judgment is applied; however, general corporate expenses are not allocated to the segments. In determining total assets by reportable segment, the Company identifies those assets that are attributable to a particular segment such as reinsurance balances receivable, reinsurance recoverable on unpaid losses, deferred commission and other acquisition expenses, funds withheld receivable, loan to related party and restricted cash and investments. All remaining assets are allocated to Corporate. The CODM for both the Diversified Reinsurance and the AmTrust Reinsurance segments is the Company's Chief Executive Officer and Chief Financial Officer who has served in that position since May 2023. The significant segment expenses as reported in the computation of underwriting results in the tables below are used by the Company's CODM in assessing segment performance on a quarterly basis and deciding how to allocate resources within the Company. The following tables summarize the underwriting results of our reportable segments and the reconciliation of our reportable segments' underwriting results to consolidated net loss for the three months ended March 31, 2025 and 2024, respectively: For the Three Months Ended March 31, 2025 Diversified Reinsurance AmTrust Reinsurance Total Gross premiums written $ 5,016 $ ( 942 ) $ 4,074 Net premiums written $ 4,991 $ ( 942 ) $ 4,049 Net premiums earned $ 5,000 $ 2,684 $ 7,684 Net loss and LAE 2,234 5,389 7,623 Commission and other acquisition expenses ( 2,291 ) ( 2,267 ) ( 4,558 ) General and administrative expenses ( 2,689 ) ( 606 ) ( 3,295 ) Underwriting income $ 2,254 $ 5,200 7,454 Reconciliation to net loss Net investment income and net realized and unrealized investment gains 6,365 Interest and amortization expenses ( 4,818 ) Foreign exchange and other losses, net ( 7,434 ) Other general and administrative expenses ( 7,478 ) Income tax expense ( 12 ) Interest in loss of equity method investments ( 2,722 ) Net loss $ ( 8,645 ) Underwriting income for the AmTrust Reinsurance segment above included the following items for the three months ended March 31, 2025 that were specifically considered by the CODM in assessing segment performance: • Commission and other acquisition expenses included accelerated amortization of deferred acquisition costs upon the recognition of a premium deficiency of $ 1,255 in the AmTrust Quota Share for the three months ended March 31, 2025. • Net loss and LAE was offset by amortization of the deferred gain liability of $ 5,888 on the LPT/ADC Agreement for the three months ended March 31, 2025 since cumulative paid losses exceed the minimum risk retention under the LPT/ADC Agreement. 10 MAIDEN HOLDINGS, LTD. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (in thousands of U.S. dollars, except share and per share data) 3. Segment Information (continued) For the Three Months Ended March 31, 2024 Diversified Reinsurance AmTrust Reinsurance Total Gross premiums written $ 8,828 $ ( 505 ) $ 8,323 Net premiums written $ 8,819 $ ( 505 ) $ 8,314 Net premiums earned $ 8,991 $ 3,417 $ 12,408 Other insurance revenue 46 — 46 Net loss and LAE ( 2,924 ) ( 8,701 ) ( 11,625 ) Commission and other acquisition expenses ( 4,295 ) ( 1,298 ) ( 5,593 ) General and administrative expenses ( 2,090 ) ( 670 ) ( 2,760 ) Underwriting loss $ ( 272 ) $ ( 7,252 ) ( 7,524 ) Reconciliation to net income Net investment income and net realized and unrealized investment gains 16,450 Interest and amortization expenses ( 4,815 ) Foreign exchange and other gains, net 2,053 Other general and administrative expenses ( 5,300 ) Income tax expense ( 11 ) Interest in income from equity method investments 606 Net income $ 1,459 11 MAIDEN HOLDINGS, LTD. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (in thousands of U.S. dollars, except share and per share data) 3. Segment Information (continued) The following tables summarize the financial position of the Company's reportable segments including a reconciliation to the Company's consolidated total assets at March 31, 2025 and December 31, 2024: March 31, 2025 Diversified Reinsurance AmTrust Reinsurance Total Reinsurance balances receivable, net $ 2,566 $ 6,494 $ 9,060 Reinsurance recoverable on unpaid losses 2,890 509,938 512,828 Deferred commission and other acquisition expenses 577 4,948 5,525 Loan to related party — 128,118 128,118 Restricted cash and cash equivalents and investments 68,008 136,121 204,129 Funds withheld receivable 12,606 — 12,606 Other assets 333 — 333 Total assets - reportable segments 86,980 785,619 872,599 Corporate assets — — 342,347 Assets held for sale — — 19,638 Total Assets $ 86,980 $ 785,619 $ 1,234,584 December 31, 2024 Diversified Reinsurance AmTrust Reinsurance Total Reinsurance balances receivable, net $ 2,945 $ 5,171 $ 8,116 Reinsurance recoverable on unpaid losses 3,064 532,910 535,974 Deferred commission and other acquisition expenses 549 7,553 8,102 Loan to related party — 167,975 167,975 Restricted cash and cash equivalents and investments 63,456 128,826 192,282 Funds withheld receivable 12,650 — 12,650 Other assets 603 — 603 Total assets - reportable segments 83,267 842,435 925,702 Corporate assets — — 369,489 Assets held for sale — — 20,815 Total Assets $ 83,267 $ 842,435 $ 1,316,006 12 MAIDEN HOLDINGS, LTD. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (in thousands of U.S. dollars, except share and per share data) 3. Segment Information (continued) The financial information relating to net premiums written by major line of business and reportable segment for the three months ended March 31, 2025 and 2024 are detailed below: For the Three Months Ended March 31, 2025 2024 Net premiums written Total Total Diversified Reinsurance International $ 4,991 $ 8,819 Total Diversified Reinsurance 4,991 8,819 AmTrust Reinsurance Small Commercial Business ( 259 ) ( 492 ) Specialty Program — ( 15 ) Specialty Risk and Extended Warranty ( 683 ) 2 Total AmTrust Reinsurance ( 942 ) ( 505 ) Total Net Premiums Written $ 4,049 $ 8,314 The financial information for net premiums earned by major line of business and reportable segment for the three months ended March 31, 2025 and 2024 are detailed below: For the Three Months Ended March 31, 2025 2024 Net premiums earned Total Total Diversified Reinsurance International $ 5,000 $ 8,991 Total Diversified Reinsurance 5,000 8,991 AmTrust Reinsurance Small Commercial Business ( 259 ) ( 492 ) Specialty Program — ( 15 ) Specialty Risk and Extended Warranty 2,943 3,924 Total AmTrust Reinsurance 2,684 3,417 Total Net Premiums Earned $ 7,684 $ 12,408 13 MAIDEN HOLDINGS, LTD. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (in thousands of U.S. dollars, except share and per share data) 4. Investments The Company holds: (i) available-for-sale ("AFS") portfolios of fixed maturity and equity securities, carried at fair value; (ii) other investments, of which certain investments are carried at fair value and investments in direct lending entities are carried at cost less impairment; (iii) equity method investments; and (iv) funds held - directly managed. a) Fixed Maturities The amortized cost, gross unrealized gains and losses, and fair value of fixed maturities at March 31, 2025 and December 31, 2024 are as follows: March 31, 2025 Original or amortized cost Gross unrealized gains Gross unrealized losses Fair value U.S. treasury bonds $ 52,748 $ — $ ( 1 ) $ 52,747 U.S. agency bonds – mortgage-backed 26,045 — ( 2,937 ) 23,108 Non-U.S. government bonds 45,779 38 ( 1 ) 45,816 Collateralized loan obligations 63,111 40 ( 48 ) 63,103 Corporate bonds 18,226 — ( 540 ) 17,686 Total fixed maturity investments $ 205,909 $ 78 $ ( 3,527 ) $ 202,460 December 31, 2024 Original or amortized cost Gross unrealized gains Gross unrealized losses Fair value U.S. treasury bonds $ 84,033 $ 25 $ — $ 84,058 U.S. agency bonds – mortgage-backed 26,841 — ( 3,485 ) 23,356 Non-U.S. government bonds 38,496 39 ( 3 ) 38,532 Collateralized loan obligations 60,829 4 ( 130 ) 60,703 Corporate bonds 26,589 — ( 625 ) 25,964 Total fixed maturity investments $ 236,788 $ 68 $ ( 4,243 ) $ 232,613 The Company separately presents the accrued interest receivable balance on its AFS fixed maturity investments on the Condensed Consolidated Balance Sheets under accrued investment income. The amount of accrued interest receivable on AFS securities was $ 661 at March 31, 2025 (December 31, 2024: $ 1,088 ). The Company has elected the practical expedient to exclude accrued interest from both the fair value and the amortized cost basis of the AFS fixed maturity securities for the purposes of identifying and measuring any impairments under the allowance for expected credit losses standard adopted on January 1, 2023. Write-offs of accrued interest receivable balances are recognized in net investment gains and losses in the period in which they are deemed uncollectible. There was no write-off recognized on the accrued interest receivable during the three months ended March 31, 2025 and 2024. The contractual maturities of our fixed maturities are shown below. Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. March 31, 2025 Amortized cost Fair value Due in one year or less $ 100,085 $ 100,039 Due after one year through five years 16,125 15,752 Due after five years through ten years 543 458 116,753 116,249 U.S. agency bonds – mortgage-backed 26,045 23,108 Collateralized loan obligations 63,111 63,103 Total fixed maturity investments $ 205,909 $ 202,460 14 MAIDEN HOLDINGS, LTD. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (in thousands of U.S. dollars, except share and per share data) 4. Investments (continued) The following tables summarize fixed maturities in an unrealized loss position and the aggregate fair value and gross unrealized loss by length of time the security has continuously been in an unrealized loss position: Less than 12 Months 12 Months or More Total March 31, 2025 Fair value Unrealized losses Fair value Unrealized losses Fair value Unrealized losses U.S. treasury bonds $ 52,747 $ ( 1 ) $ — $ — $ 52,747 $ ( 1 ) U.S. agency bonds – mortgage-backed — — 23,108 ( 2,937 ) 23,108 ( 2,937 ) Non-U.S. government bonds 7,858 ( 1 ) — — 7,858 ( 1 ) Collateralized loan obligations — — 23,531 ( 48 ) 23,531 ( 48 ) Corporate bonds — — 17,686 ( 540 ) 17,686 ( 540 ) Total temporarily impaired fixed maturities $ 60,605 $ ( 2 ) $ 64,325 $ ( 3,525 ) $ 124,930 $ ( 3,527 ) At March 31, 2025, there were 30 securities in an unrealized loss position with a fair value of $ 124,930 and unrealized losses of $ 3,527 . Of these securities in an unrealized loss position, there were 24 securities in our portfolio that have been in an unrealized loss position for twelve months or greater with a fair value of $ 64,325 and unrealized losses of $ 3,525 . Less than 12 Months 12 Months or More Total December 31, 2024 Fair value Unrealized losses Fair value Unrealized losses Fair value Unrealized losses U.S. agency bonds – mortgage-backed $ — $ — $ 23,356 $ ( 3,485 ) $ 23,356 $ ( 3,485 ) Non-U.S. government bonds 7,389 ( 3 ) — — 7,389 ( 3 ) Collateralized loan obligations — — 56,242 ( 130 ) 56,242 ( 130 ) Corporate bonds — — 25,964 ( 625 ) 25,964 ( 625 ) Total temporarily impaired fixed maturities $ 7,389 $ ( 3 ) $ 105,562 $ ( 4,240 ) $ 112,951 $ ( 4,243 ) At December 31, 2024, there were 36 securities in an unrealized loss position with a fair value of $ 112,951 and unrealized losses of $ 4,243 . Of these securities in an unrealized loss position, there were 35 securities in our portfolio that have been in an unrealized loss position for twelve months or greater with a fair value of $ 105,562 and unrealized losses of $ 4,240 . Allowance for Expected Credit Losses & Non-Credit Related Impairment Costs The Company evaluates AFS securities for impairment when fair value is below amortized cost on a quarterly basis. If the Company intends to sell or will be required to sell the security before its anticipated recovery, the full amount of the impairment loss is charged to net income (loss) and included in net investment gains (losses). If the Company does not intend to sell or will not be required to sell the security before its anticipated recovery, an allowance for expected credit losses is established and the portion of the loss relating to credit factors is recorded in net income (loss). The non-credit impairment amount of the loss (which could be related to interest rates and/or market conditions) is recognized in other comprehensive income. To estimate the allowance for expected credit losses for most of the AFS securities, the Company analyzes projected cash flows which are primarily driven by assumptions regarding loss severity, probability of default and projected recovery rates. The Company's determination of default and loss severity rates are based on credit rating, credit analysis and macroeconomic forecasts. Unrealized losses on securities issued or backed, either explicitly or implicitly by the U.S. government are not analyzed for credit losses. The Company has concluded that any possibility of a credit loss on these securities is highly unlikely due to the explicit U.S. government guarantee related to certain securities (e.g., Government National Mortgage Association issuances) and the implicit guarantee related to other securities that has been validated by past actions (e.g., U.S. government bailout of Federal National Mortgage Association and Federal Home Loan Mortgage Corporation during the 2008 credit crisis). Although these securities are not analyzed for credit losses, they are evaluated for impairment based on the Company's intention to sell and likely requirement to sell. Based on the Company's analysis at March 31, 2025 and 2024, respectively, the unrealized losses on the Company’s AFS fixed maturity securities were due to non-credit factors and were expected to be recovered as the related securities approach maturity. At March 31, 2025, the Company did not intend to sell the securities in an unrealized loss position and it is not more likely than not that the Company will be required to sell these securities before the anticipated recovery of their amortized costs. Therefore, there was no allowance recorded for expected credit losses on AFS securities for the three months ended March 31, 2025 and 2024. 15 MAIDEN HOLDINGS, LTD. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (in thousands of U.S. dollars, except share and per share data) 4. Investments (continued) The following tables summarize the credit ratings of our fixed maturities as at March 31, 2025 and December 31, 2024: March 31, 2025 Amortized cost Fair value % of Total fair value U.S. treasury bonds $ 52,748 $ 52,747 26.1 % U.S. agency bonds – mortgage-backed 26,045 23,108 11.4 % AAA 77,838 77,848 38.4 % AA+, AA, AA- 31,052 31,071 15.3 % A+, A, A- 9,852 9,447 4.7 % BBB+, BBB, BBB- 8,374 8,239 4.1 % Total fixed maturities (1) $ 205,909 $ 202,460 100.0 % December 31, 2024 Amortized cost Fair value % of Total fair value U.S. treasury bonds $ 84,033 $ 84,058 36.1 % U.S. agency bonds – mortgage-backed 26,841 23,356 10.0 % AAA 70,943 70,827 30.5 % AA+, AA, AA- 29,981 29,998 12.9 % A+, A, A- 12,837 12,404 5.3 % BBB+, BBB, BBB- 12,153 11,970 5.2 % BB+ or lower — — — % Total fixed maturities (1) $ 236,788 $ 232,613 100.0 % (1) Ratings above are based on Standard & Poor’s ("S&P"), or equivalent, ratings . b) Other Investments, Equity Securities and Equity Method Investments Certain of the Company's other investments and equity method investments are subject to restrictions on redemptions and sales that are determined by the governing documents, which could limit our ability to liquidate those investments. These restrictions may include lock-ups, redemption gates, restricted share classes, restrictions on the frequency of redemption and notice periods. A gate is the ability to deny or delay a redemption request. Certain other investments and equity method investments may not have any restrictions governing their sale, but there is no active market and no guarantee that we will be able to execute a sale in a timely manner. In addition, even if certain other investments and equity method investments are not eligible for redemption or sales are restricted, the Company may still receive income distributions from those investments. Other investments The table shows the composition of the Company's other investments as of March 31, 2025 and December 31, 2024: March 31, 2025 December 31, 2024 Carrying value % of Total Carrying value % of Total Privately held equity investments $ 48,677 29.8 % $ 46,301 29.5 % Private equity funds 27,098 16.6 % 25,123 16.0 % Private credit investments 1,808 1.1 % 1,909 1.2 % Investments in direct lending entities (at cost) 85,975 52.5 % 83,683 53.3 % Total other investments $ 163,558 100.0 % $ 157,016 100.0 % The collateralized investments in direct lending entities of $ 85,975 at March 31, 2025 (December 31, 2024: $ 83,683 ) are carried at cost less an allowance for expected credit losses, with any indication of credit loss recognized in net income when determined. An allowance for expected credit losses of $ 1,023 was reported on the investments in direct lending entities as at March 31, 2025 and December 31, 2024. Please see Note 5(d). Fair Value Measurements for additional information regarding this investment. 16 MAIDEN HOLDINGS, LTD. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (in thousands of U.S. dollars, except share and per share data) 4. Investments (continued) Equity Securities Equity securities currently include privately held equity investments in common and preferred stocks. The Company's privately held equity investments in common and preferred stocks are direct investments in companies that the Company believes offer attractive risk adjusted returns or offer other strategic advantages. Each investment may have its own unique terms and conditions and there may be restrictions on disposals. There is no active market for these investments. The following table provides the cost and fair values of the equity securities held at March 31, 2025 and December 31, 2024: March 31, 2025 December 31, 2024 Cost Fair Value Cost Fair Value Privately held common stocks $ 8,186 $ 5,768 $ 8,186 $ 6,778 Privately held preferred stocks 5,250 6,082 5,250 6,369 Total equity securities $ 13,436 $ 11,850 $ 13,436 $ 13,147 All of the privately held securities held at March 31, 2025 are subject to contractual sale restrictions. Each of these investments are subject to agreements that restrict the transfer, sale, and indemnification of these privately held investments indefinitely. The Company must hold these shares indefinitely unless the investee's shares are registered with the SEC and qualified by state authorities, or until an exemption from such registration and qualification requirements may become available. Fair Value Remaining duration of restrictions Nature of contractual sale restrictions Circumstances that could cause a lapse in restrictions Privately held common stocks $ 5,768 Indefinite The Purchaser must hold the restricted shares indefinitely Registration of securities with the SEC or if exemption is available Privately held preferred stocks 6,082 Indefinite The Purchaser must hold the restricted shares indefinitely Registration of securities with the SEC or if exemption is available Total equity securities subject to contractual sale restrictions $ 11,850 Equity Method Investments The equity method investments currently include real estate investments and other investments. The table below shows the carrying value of the Company's equity method investments as of March 31, 2025 and December 31, 2024: March 31, 2025 December 31, 2024 Carrying Value % of Total Carrying Value % of Total Real estate investments $ 58,140 73.7 % $ 57,541 70.8 % Other investments 20,701 26.3 % 23,746 29.2 % Total equity method investments $ 78,841 100.0 % $ 81,287 100.0 % The equity method investments above include limited partnerships which are variable interests issued by variable interest entities ("VIEs"). The Company does not have the power to direct the activities that are most significant to the economic performance of these VIEs, therefore, the Company is not the primary beneficiary of these VIEs. T he Company is deemed to have limited influence over the operating and financial policies of the investee and accordingly, these investments are reported under the equity method of accounting. In applying the equity method of accounting, the investments are initially recorded at cost and are subsequently adjusted based on the Company’s proportionate share of the investee's net income or loss. Generally, the maximum exposure to loss on these interests is limited to the amount of commitment made by the Company as more fully described in Note 11 - Commitments, Contingencies and Guarantees in these condensed consolidated financial statements. 17 MAIDEN HOLDINGS, LTD. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (in thousands of U.S. dollars, except share and per share data) 4. Investments (continued) The table below shows the carrying value and beneficial ownership percentage of the Company's equity method investments as of March 31, 2025, the summarized financial data of each equity method investment for the year ended December 31, 2024, and the Company's interest in income (loss) of equity method investments for the three months ended March 31, 2025: March 31, 2025 For the Year Ended December 31, 2024 For the Three Months Ended March 31, 2025 Carrying Value Beneficial Ownership Investee Revenue (1) Investee net income (loss) (1) Equity in income (loss) of investee USQ Risk (2) $ 4,667 18.9 % $ 21,867 $ 11,208 $ 427 Silverstone Venture 1 4,892 90.0 % 5,931 ( 5,130 ) ( 3,309 ) Silverstone Venture 2 2,268 86.8 % 281 252 71 Silverstone Venture 3 8,874 70.2 % — ( 33 ) 135 Extell Hudson Waterfront Holdings 27,500 25.0 % 10,159 10,058 — Seiden LP & Seiden MGMT LP 30,640 99.9 % 612 ( 113 ) ( 46 ) Total equity method investments $ 78,841 $ ( 2,722 ) (1) The Company has included summarized financial data of its equity method investees for the year ended December 31, 2024 as this period represents the most recent audited financial statements available at the time of filing the Company's Form 10-Q for the three months ended March 31, 2025. (2) Please refer to Note 15. Subsequent Events for details regarding the recent sale of USQ Risk subsequent to March 31, 2025 . c) Net Investment Income Net investment income was derived from the following sources for the three months ended March 31, 2025 and 2024: For the Three Months Ended March 31, 2025 2024 Fixed maturities $ 1,803 $ 2,440 Income on funds withheld 76 901 Interest income from net loan receivable from related party 598 3,070 Other investments 216 1,207 Cash and cash equivalents 363 174 3,056 7,792 Investment expenses ( 22 ) ( 92 ) Net investment income $ 3,034 $ 7,700 d) Net Realized and Unrealized Investment Gains (Losses) Realized gains or losses on the sale of investments are determined on the basis of the first in first out cost method. The following tables show the net realized and unrealized investment gains (losses) included in the Condensed Consolidated Statements of Income for the three months ended March 31, 2025 and 2024: For the Three Months Ended March 31, 2025 Gross gains Gross losses Net Fixed maturities $ — $ ( 1 ) $ ( 1 ) Equity securities — ( 1,297 ) ( 1,297 ) Other investments 5,019 ( 390 ) 4,629 Net realized and unrealized investment gains (losses) $ 5,019 $ ( 1,688 ) $ 3,331 For the Three Months Ended March 31, 2024 Gross gains Gross losses Net Fixed maturities $ — $ ( 218 ) $ ( 218 ) Equity securities 146 ( 1,017 ) ( 871 ) Other investments 11,324 ( 1,485 ) 9,839 Net realized and unrealized investment gains (losses) $ 11,470 $ ( 2,720 ) $ 8,750 18 MAIDEN HOLDINGS, LTD. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (in thousands of U.S. dollars, except share and per share data) 4. Investments (continued) Realized and unrealized gains and losses from equity securities detailed above include both sales and distributions of equity securities and unrealized gains and losses coming from fair value changes. Net unrealized losses recognized for equity securities still held at the reporting date for the three months ended March 31, 2025 and 2024, respectively, included: For the Three Months Ended March 31, 2025 2024 Net losses recognized for equity securities $ ( 1,297 ) $ ( 871 ) Net gains recognized for equity securities divested — — Net unrealized losses recognized for equity securities still held at the reporting date $ ( 1,297 ) $ ( 871 ) Proceeds from sales of fixed maturity investments were $ 1,788 for the three months ended March 31, 2025 (2024: $ 23,835 ). Net unrealized losses included in accumulated other comprehensive income ("AOCI") were as follows at March 31, 2025 and December 31, 2024, respectively: March 31, 2025 December 31, 2024 Net unrealized losses on fixed maturity investments $ ( 3,449 ) $ ( 4,175 ) Net unrealized losses on held for sale AFS investments ( 430 ) ( 453 ) Total net unrealized losses ( 3,879 ) ( 4,628 ) Net unrealized losses, net of deferred income tax $ ( 3,879 ) $ ( 4,628 ) Change, net of deferred income tax $ 749 $ 3,156 e) Restricted Cash and Cash Equivalents and Investments The Company is required to provide collateral for its reinsurance liabilities under various reinsurance agreements and utilizes trust accounts to collateralize business with reinsurance counterparties. The assets in trust as collateral are primarily cash and highly rated fixed maturities. The fair values of restricted assets at March 31, 2025 and December 31, 2024 are: March 31, 2025 December 31, 2024 Restricted cash – third party agreements $ 10,553 $ 7,678 Restricted cash – related party agreements 5,009 1,406 Total restricted cash 15,562 9,084 Restricted investments – in trust for third party agreements at fair value (amortized cost: 2025 – $ 59,721 ; 2024 – $ 58,365 ) 57,526 55,848 Restricted investments – in trust for related party agreements at fair value (amortized cost: 2025 – $ 131,991 ; 2024 – $ 128,584 ) 131,112 127,420 Total restricted investments 188,638 183,268 Total restricted cash and investments $ 204,200 $ 192,352 19 MAIDEN HOLDINGS, LTD. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (in thousands of U.S. dollars, except share and per share data) 5. Fair Value of Financial Instruments (a) Fair Values of Financial Instruments Fair Value Measurements — Accounting Standards Codification Topic 820, "Fair Value Measurements and Disclosures" ("ASC 820") defines fair value as the price that would be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between open market participants at the measurement date. Additionally, ASC 820 establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. The hierarchy is broken down into three levels based on the reliability of inputs: • Level 1 — Valuations based on unadjusted quoted market prices for identical assets or liabilities that we have the ability to access. Because valuations are based on quoted prices that are readily and regularly available in an active market, valuation of these products does not entail a significant degree of judgment. Examples of assets and liabilities utilizing Level 1 inputs include: U.S. Treasury bonds; and publicly traded equity securities; • Level 2 — Valuations based on quoted prices for similar assets or liabilities in active markets, quoted prices for identical assets or liabilities in inactive markets, or valuations based on models where the significant inputs are observable (e.g. interest rates, yield curves, prepayment speeds, default rates, loss severity, etc.) or can be corroborated by observable market data. Examples of assets and liabilities utilizing Level 2 inputs include: U.S. government-sponsored agency securities; non-U.S. government and supranational obligations; commercial mortgage-backed securities ("CMBS"); collateralized loan obligations ("CLO"); corporate and municipal bonds; and • Level 3 — Valuations based on models where significant inputs are not observable. The unobservable inputs reflect our own assumptions about assumptions that market participants would use developed on the basis of the best information available in the particular circumstances. Examples of assets and liabilities utilizing Level 3 inputs include: an investment in preference shares of a start-up insurance producer. The availability of observable inputs can vary and is affected by a wide variety of factors, including, for example, the type of financial instrument, whether the financial instrument is new and not yet established in the marketplace, and other characteristics particular to the transaction. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires significantly more judgment. Accordingly, the degree of judgment exercised by management in determining fair value is greatest for instruments categorized in the Level 3 hierarchy. The Company uses prices and inputs that are current as at the measurement date. In periods of market dislocation, the observability of prices and inputs may be reduced for many instruments. This condition could cause an instrument to be reclassified between hierarchy levels. For investments that have quoted market prices in active markets, the Company uses the quoted market prices as fair value and includes these in the Level 1 hierarchy. The Company receives the quoted market prices from a third party nationally recognized provider ("the Pricing Service"). When quoted market prices are unavailable, the Company utilizes the Pricing Service to determine an estimate of fair value. The fair value estimates are included in the Level 2 hierarchy. The Company will challenge any prices for its investments which are considered not to be representative of fair value. If quoted market prices and an estimate from the Pricing Service are unavailable, the Company produces an estimate of fair value based on dealer quotations for recent activity in positions with the same or similar characteristics to that being valued. The Company determines whether the fair value estimate is in the Level 2 or Level 3 hierarchy depending on the level of observable inputs available when estimating the fair value. The Company bases its estimates of fair values for assets on the bid price as it represents what a third party market participant would be willing to pay in an orderly transaction. ASC 825, "Disclosure About Fair Value of Financial Instruments" , requires all entities to disclose the fair value of their financial instruments for assets and liabilities recognized and not recognized in the balance sheet, for which it is practicable to estimate fair value. The following describes the valuation techniques used by the Company to determine the fair value of financial instruments that are measured at fair value on a recurring basis held at March 31, 2025 and December 31, 2024. U.S. government and U.S. agency bonds — Bonds issued by the U.S. Treasury, the Federal Home Loan Bank, the Federal Home Loan Mortgage Corporation, Government National Mortgage Association, Federal National Mortgage Association and the Federal Farm Credit Banks Funding Corporation. The fair values of U.S. treasury bonds are based on quoted market prices in active markets, and are included in the Level 1 fair value hierarchy. We believe the market for U.S. treasury bonds is an actively traded market given the high level of daily trading volume. The fair values of U.S. agency bonds are determined using the spread above the risk-free yield curve. As the yields for the risk-free yield curve and the spreads for these securities are observable market inputs, the fair values of U.S. agency bonds are included in the Level 2 fair value hierarchy. Non-U.S. government bonds — These securities are generally priced by independent pricing services. The Pricing Service may use current market trades for securities with similar quality, maturity and coupon. If no such trades are available, the Pricing Service typically uses analytical models which may incorporate spreads, interest rate data and market/sector news. As the significant inputs used to price non-U.S. government bonds are observable market inputs, the fair values of non-U.S. government bonds are included in the Level 2 fair value hierarchy. 20 MAIDEN HOLDINGS, LTD. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (in thousands of U.S. dollars, except share and per share data) 5. Fair Value of Financial Instruments (continued) Collateralized loan obligations ("CLO") - These asset backed securities are originated by a variety of financial institutions that on acquisition are rated BBB-/Baa3 or higher. These securities are priced by independent pricing services and brokers. The pricing provider applies dealer quotes and other available trade information, prepayment speeds, yield curves and credit spreads to the valuation. As the significant inputs used to price the CLO are observable market inputs, the fair values are included in the Level 2 fair value hierarchy. Commercial mortgage-backed securities ("CMBS") - These asset backed securities are originated by a variety of financial institutions that on acquisition are rated BBB-/Baa3 or higher. These securities are priced by independent pricing services and brokers. The pricing provider applies dealer quotes and other available trade information, prepayment speeds, yield curves and credit spreads to the valuation. As the significant inputs used to price the CMBS are observable market inputs, the fair values are included in the Level 2 fair value hierarchy. Corporate and municipal bonds — Bonds issued by corporations, U.S. state and municipality entities or agencies that on acquisition are rated BBB-/Baa3 or higher. These securities are generally priced by independent pricing services. The credit spreads are sourced from broker/dealers, trade prices and new issue market. Where pricing is unavailable from pricing services, custodian pricing or non-binding quotes are obtained from broker-dealers to estimate fair values. As significant inputs used to price corporate and municipal bonds are observable market inputs, fair values are included in the Level 2 fair value hierarchy. Equity securities - Equity securities can include both publicly traded and privately held common and preferred stocks. The fair value of publicly traded common and preferred stocks is primarily priced by pricing services, reflecting the closing price quoted for the final trading day of the period. These investments are carried at fair value using observable market pricing data and is included in the Level 1 fair value hierarchy. Any unrealized gains or losses on the investment is recorded in net income in the reporting period in which it occurs. The privately held common and preferred stocks are valued using significant inputs that are unobservable where there is little or no market activity. Unadjusted third party pricing sources or management's assumptions and internal valuation models may be used to determine the fair values, therefore, these investments are classified as Level 3 in the fair value hierarchy. For investments without a readily determinable fair value, the measurement alternative can be elected to report the qualifying investment at cost, less impairment if any, plus or minus observable price changes in orderly transactions for an identical or similar investment of the same issuer. Other investments — Includes unquoted investments comprised of the following types of investments: • Privately held equity investments: These are direct equity investments in common and preferred stock of privately held entities. The fair values are estimated using quarterly financial statements and/or recent private market transactions and thus are included under Level 3 of the fair value hierarchy due to unobservable market data used for valuation. • Private credit investments: These are privately held equity investments in common stock of entities that lend money valued using the most recently available or quarterly net asset value ("NAV") statements as provided by the external fund manager or third-party administrator and therefore measured using the NAV as a practical expedient. • Private equity funds: These are comprised of private equity funds, private equity co-investments with sponsoring entities and investments in real estate limited partnerships and joint ventures . The fair value is estimated based on the most recently available NAV as advised by the external fund manager or third-party administrator. The fair values are therefore measured using the NAV as a practical expedient. • Due to a lag in the valuations of certain funds reported by the investment managers, the Company may record changes in valuation with up to a three-month lag. The Company regularly reviews and discusses fund performance with the investment managers or sponsors to corroborate the reasonableness of the reported NAV and to assess whether any events have occurred within the lag period that would affect the valuation of the investments. Derivative Instruments - The Company entered into a reinsurance contract that is accounted for as a derivative. This reinsurance contract provides indemnification to an insured or cedant as a result of a change in a variable as opposed to an identifiable insurable event. The Company considers this contract to be part of its underwriting operations. This derivative is initially valued at cost which approximates fair value. In subsequent measurement periods, the fair value of this derivative is determined using internally developed discounted cash flow models using appropriate discount rates. The selection of an appropriate discount rate is judgmental and is the most significant unobservable input used in the valuation of this derivative. The fair value changes in underwriting-related derivative instruments is included within other insurance revenue (expense), net. The derivative liability on retroactive reinsurance is presented as part of accrued expenses and other liabilities. A significant increase (decrease) in this input in isolation may result in a significantly lower (higher) fair value measurement for the derivative contract. As the significant inputs used to price these derivatives are unobservable, the fair values of this contract is classified as Level 3 in the fair value hierarchy. (b) Fair Value Hierarchy The Company’s estimates of fair value for financial assets and financial liabilities are based on the framework established in ASC 820. The framework is based on the inputs used in valuation and gives the highest priority to quoted prices in active markets and requires that observable inputs be used in the valuation methodology whenever available. In determining the level of the hierarchy in which the estimate is disclosed, the highest priority is given to unadjusted quoted prices in active trading markets and the lowest priority to unobservable inputs that reflect significant market assumptions. 21 MAIDEN HOLDINGS, LTD. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (in thousands of U.S. dollars, except share and per share data) 5. Fair Value of Financial Instruments (continued) At March 31, 2025 and December 31, 2024, the Company classified its financial instruments measured at fair value on a recurring basis in the following valuation hierarchy: March 31, 2025 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Fair Value Based on NAV Practical Expedient Total Fair Value Fixed maturities U.S. treasury bonds $ 52,747 $ — $ — $ — $ 52,747 U.S. agency bonds – mortgage-backed — 23,108 — — 23,108 Non-U.S. government bonds — 45,816 — — 45,816 Collateralized loan obligations — 63,103 — — 63,103 Corporate bonds — 17,686 — — 17,686 Equity securities — — 9,600 — 9,600 Other investments — — 39,540 34,492 74,032 Total investments $ 52,747 $ 149,713 $ 49,140 $ 34,492 $ 286,092 As a percentage of total assets 4.3 % 12.1 % 4.0 % 2.8 % 23.2 % Underwriting-related derivative liability $ — $ — $ 3,984 $ — $ 3,984 December 31, 2024 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Fair Value Based on NAV Practical Expedient Total Fair Value Fixed maturities U.S. treasury bonds $ 84,058 $ — $ — $ — $ 84,058 U.S. agency bonds – mortgage-backed — 23,356 — — 23,356 Non-U.S. government bonds — 38,532 — — 38,532 Collateralized loan obligations — 60,703 — — 60,703 Corporate bonds — 25,964 — — 25,964 Equity securities — — 10,897 — 10,897 Other investments — — 37,104 32,678 69,782 Total investments $ 84,058 $ 148,555 $ 48,001 $ 32,678 $ 313,292 As a percentage of total assets 6.4 % 11.3 % 3.6 % 2.5 % 23.8 % Underwriting-related derivative liability $ — $ — $ 3,984 $ — $ 3,984 The Company utilizes the Pricing Service to assist in determining the fair value of its investments; however, management is ultimately responsible for all fair values presented in the Company’s consolidated financial statements. This includes responsibility for monitoring the fair value process, ensuring objective and reliable valuation practices, and pricing of assets and liabilities and use of pricing sources. The Company analyzes and reviews the information and prices received from the Pricing Service to ensure that the prices provided represent a reasonable estimate of fair value. The Pricing Service was utilized to estimate fair value measurements for 100.0 % of our fixed maturities at March 31, 2025 and December 31, 2024, respectively. The Pricing Service utilizes market quotations for fixed maturity securities that have quoted market prices in active markets. Since fixed maturities other than U.S. treasury bonds generally do not trade actively on a daily basis, the Pricing Service prepares estimates of fair value measurements using relevant market data, benchmark curves, sector groupings and matrix pricing and these have been classified as Level 2 within the fair value hierarchy. At March 31, 2025 and December 31, 2024, respectively, approximately 0.0 % of our fixed maturities were valued using the market approach. At March 31, 2025 and December 31, 2024, no securities in our fixed maturity investment portfolio were priced using a binding quotation from a broker and/or custodian as opposed to the Pricing Service. At March 31, 2025 and December 31, 2024, the Company did not adjust any pricing provided to it based on the review performed by its investment managers. There were no transfers to or from Level 3 during the three months ended March 31, 2025 and March 31, 2024. 22 MAIDEN HOLDINGS, LTD. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (in thousands of U.S. dollars, except share and per share data) 5. Fair Value of Financial Instruments (continued) (c) Level 3 Financial Instruments At March 31, 2025, the Company holds Level 3 financial instruments which currently consist of privately held investments of $ 49,140 (December 31, 2024: $ 48,001 ) and an underwriting-related derivative liability of $ 3,984 (December 31, 2024: $ 3,984 ) on a reinsurance contract written by GLS which is included in accrued expenses and other liabilities. The fair value of privately held equity securities are estimated using quarterly unaudited capital or financial statements provided by the investee or recent private market transactions, where applicable. Any changes to the financial information provided by the investee could result in a significantly higher or lower valuation at the reporting date. The fair value of underwriting-related derivative instruments is determined using a discounted cash flow model in which the Company examines current market conditions, historical results as well as contract specific information that may impact future cash flows in order to assess the reasonableness of inputs used in the valuation model . Due to significant unobservable inputs in these valuations, the Company classifies the fair values as Level 3 within the fair value hierarchy . The following table provides a summary of quantitative information regarding the significant unobservable inputs used in determining the fair value of other investments measured at fair value on a recurring basis under the Level 3 classification at March 31, 2025: Fair Value Valuation Technique Unobservable Inputs Range Privately held equity investments - common shares $ 44,020 Quarterly financial statements Price/book ratios of comparable public companies Privately held equity investments - preferred shares 5,120 Quarterly financial statements Privately calculated enterprise valuations Total Level 3 investments $ 49,140 Underwriting-related derivative liability $ 3,984 Discounted cash flows Duration matched discount rates 5.0 % to 6.0 % The following table shows the reconciliation of beginning and ending balances for investments measured at fair value on a recurring basis using Level 3 inputs for the three months ended March 31, 2025 and 2024, respectively. The Company includes any related interest and dividend income in net investment income and are excluded from the reconciliation in the table below: For the Three Months Ended March 31, 2025 2024 Balance - beginning of period $ 48,001 $ 46,656 Net realized and unrealized gains recognized in the statement of income 1,139 5,511 Total Level 3 investments - end of period $ 49,140 $ 52,167 (d) Financial Instruments Disclosed, But Not Carried, at Fair Value The fair value of financial instruments accounting guidance also applies to financial instruments disclosed, but not carried, at fair value, except for certain financial instruments related to insurance contracts . At March 31, 2025, the carrying values of cash equivalents (including restricted amounts), accrued investment income, reinsurance balances receivable and certain other assets and liabilities approximate fair values due to their inherent short duration. As these financial instruments are not actively traded, the fair values of these financial instruments are classified as Level 2 in the fair value hierarchy. At March 31, 2025, the carrying value of the loan to related party approximated fair value. The fair value of this loan is primarily determined by estimating expected future cash flows and discounting them using current interest rates for similar loans with similar credit risk. As the loan to related party is not actively traded, its fair value is classified as Level 3 in the fair value hierarchy. The investments made by direct lending entities are carried at cost less an allowance for expected credit losses, with any indication of credit loss recognized in net income when determined. The net carrying value of these investments approximates their fair value at the reporting date. The fair value estimates of these investments are not based on observable market data and therefore are classified as Level 3 in the fair value hierarchy. For equity securities and other investments without a readily determinable fair value, the measurement alternative was elected to report the qualifying investment at cost, less impairment if any, plus or minus observable price changes in orderly transactions for an identical or similar investment of the same issuer. The fair values of the Company's outstanding Senior Notes (as defined in Note 7. Long-Term Debt ) are based on indicative market pricing obtained from a third-party pricing service which uses observable market inputs, and therefore the fair values of these liabilities are classified as Level 2 in the fair value hierarchy. 23 MAIDEN HOLDINGS, LTD. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (in thousands of U.S. dollars, except share and per share data) 5. Fair Value of Financial Instruments (continued) The following table presents the respective carrying value and fair value for the Senior Notes as at March 31, 2025 and December 31, 2024: March 31, 2025 December 31, 2024 Carrying Value Fair Value Carrying Value Fair Value Senior Notes - MHLA – 6.625 % $ 110,000 $ 59,048 $ 110,000 $ 67,980 Senior Notes - MHNC – 7.75 % 152,361 102,874 152,361 109,030 Total Senior Notes $ 262,361 $ 161,922 $ 262,361 $ 177,010 24 MAIDEN HOLDINGS, LTD. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (in thousands of U.S. dollars, except share and per share data) 6. Shareholders' Equity a) Common Shares On May 3, 2023 at its Annual General Meeting of Shareholders, the Company's common shareholders approved the increase in the authorized share capital of the Company from $ 1,500 divided into 150,000,000 shares of par value $ 0.01 each, to $ 2,000 divided into 200,000,000 shares of par value $ 0.01 each. At March 31, 2025, the aggregate authorized share capital of the Company is 200,000,000 shares from which 151,310,133 common shares were issued, of which 99,682,710 common shares are outstanding, and 51,627,423 shares are treasury shares (please see Note 6. (b) Treasury Shares below for additional information). The remaining 48,689,867 shares are undesignated at March 31, 2025. At March 31, 2025, 1,024,299 common shares will be issued and outstanding upon vesting of restricted shares, and 1,291,729 common shares remaining are reserved for issuance under the 2019 Omnibus Incentive Plan. b) Treasury Shares On February 21, 2017, the Company's Board of Directors approved the repurchase of up to $ 100,000 of the Company's common shares from time to time at market prices. During the three months ended March 31, 2025, Maiden Reinsurance did not repurchase any common shares under the Company's share repurchase plan (March 31, 2024: 352,111 common shares at an average price of $ 1.91 per share). The Company's remaining authorization is $ 68,107 for common share repurchases at March 31, 2025 (December 31, 2024: $ 68,107 ). During the three months ended March 31, 2025, the Company repurchased 367,878 common shares (2024: 127,555 ) at an average price per share of $ 0.80 (2024: $ 1.79 ) from employees, which represent tax withholding in respect of tax obligations on the vesting of non-performance-based restricted shares. Treasury shares include 44,750,678 common shares owned by Maiden Reinsurance consisting of 41,439,348 shares issued as part of the exchange for preference shares held ("Exchange") and 3,311,330 shares directly purchased on the open market by Maiden Reinsurance which are not treated as outstanding common shares on the Condensed Consolidated Balance Sheet at March 31, 2025. Please see further information on the Exchange in the Annual Report on Form 10-K for the year ended December 31, 2024, filed with the SEC on March 10, 2025. The table below includes the total number of treasury shares outstanding at March 31, 2025 and December 31, 2024: March 31, 2025 December 31, 2024 Number of shares held by Maiden Reinsurance treated as treasury shares 44,750,678 44,750,678 Number of treasury shares due to common share repurchases by Maiden Holdings 6,876,745 6,508,867 Total number of treasury shares at the end of the reporting period 51,627,423 51,259,545 c) AOCI The following tables set forth financial information regarding the changes in the balances of each component of AOCI: For the Three Months Ended March 31, 2025 Change in net unrealized gains on investment Foreign currency translation Total Beginning balance $ ( 4,628 ) $ ( 28,105 ) $ ( 32,733 ) Net current period other comprehensive income 749 54 803 Ending balance, Maiden shareholders $ ( 3,879 ) $ ( 28,051 ) $ ( 31,930 ) For the Three Months Ended March 31, 2024 Change in net unrealized gains on investment Foreign currency translation Total Beginning balance $ ( 7,784 ) $ ( 23,685 ) $ ( 31,469 ) Net current period other comprehensive income (loss) 1,014 ( 1,736 ) ( 722 ) Ending balance, Maiden shareholders $ ( 6,770 ) $ ( 25,421 ) $ ( 32,191 ) 25 MAIDEN HOLDINGS, LTD. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (in thousands of U.S. dollars, except share and per share data) 7. Long-Term Debt Senior Notes At March 31, 2025 and December 31, 2024, Maiden Holdings had outstanding publicly-traded senior notes which were issued in 2016 ("2016 Senior Notes") and its wholly owned subsidiary, Maiden Holdings North America, Ltd. ("Maiden NA") had outstanding publicly-traded senior notes which were issued in 2013 ("2013 Senior Notes") (collectively "Senior Notes"). The 2013 Senior Notes issued by Maiden NA are fully and unconditionally guaranteed by Maiden Holdings. The Senior Notes are unsecured and unsubordinated obligations of the Company. The following tables detail the issuances of Senior Notes outstanding at March 31, 2025 and December 31, 2024: March 31, 2025 2016 Senior Notes 2013 Senior Notes Total Principal amount $ 110,000 $ 152,361 $ 262,361 Less: unamortized issuance costs 3,263 4,300 7,563 Carrying value $ 106,737 $ 148,061 $ 254,798 December 31, 2024 2016 Senior Notes 2013 Senior Notes Total Principal amount $ 110,000 $ 152,361 $ 262,361 Less: unamortized issuance costs 3,280 4,324 7,604 Carrying value $ 106,720 $ 148,037 $ 254,757 Other details: Original debt issuance costs pertaining to remaining outstanding principal amount $ 3,715 $ 5,049 Maturity date June 14, 2046 December 1, 2043 Earliest redeemable date (for cash) June 14, 2021 December 1, 2018 Coupon rate 6.625 % 7.75 % Effective interest rate 7.07 % 8.04 % Total interest and amortization expense incurred on the Senior Notes for the three months ended March 31, 2025 was $ 4,818 (2024: $ 4,815 ), of which $ 1,342 was accrued as interest payable at both March 31, 2025 and December 31, 2024, respectively. The issuance costs related to the Senior Notes were capitalized and are amortized over the effective life of the Senior Notes using the effective interest method of amortization. Under the terms of the 2013 Senior Notes, the 2013 Senior Notes can be redeemed, in whole or in part, at Maiden NA's option at any time and from time to time, until maturity at a redemption price equal to 100 % of the principal amount of the notes to be redeemed plus accrued but unpaid interest on the principal amount being redeemed to, but not including, the redemption date. Maiden NA is required to give at least thirty days and not more than sixty days notice prior to the redemption date. Please refer to Note 11. Commitments, Contingencies and Guarantees for recent litigation regarding the 2013 Senior Notes. Under the terms of the 2016 Senior Notes, the 2016 Senior Notes can be redeemed, in whole or in part, at Maiden Holdings' option at any time and from time to time, until maturity at a redemption price equal to 100 % of the principal amount of the notes to be redeemed plus accrued but unpaid interest on the principal amount being redeemed to, but not including, the redemption date. Maiden Holdings is required to give at least thirty days and not more than sixty days notice prior to the redemption date. On May 3, 2023, the Company's Board of Directors approved the repurchase, including the repurchase by Maiden Reinsurance in accordance with its investment guidelines, of up to $ 100,000 of the Company's Senior Notes from time to time at market prices in open market purchases or as may be privately negotiated. The Company has a remaining authorization of $ 99,905 for Senior Notes repurchases at March 31, 2025. No repurchases were made during the three months ended March 31, 2025 and 2024. 26 MAIDEN HOLDINGS, LTD. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (in thousands of U.S. dollars, except share and per share data) 8. Reinsurance The Company uses reinsurance and retrocessional agreements ("ceded reinsurance") to mitigate volatility, reduce its exposure to certain risks and provide capital support. Ceded reinsurance provides for the recovery of a portion of loss and LAE under certain circumstances without relieving the Company of its obligations to the policyholders. The Company remains liable to the extent that any of its reinsurers or retrocessionaires fails to meet their obligations. Loss and LAE incurred and premiums earned are reported after deduction for ceded reinsurance. In the event that one or more of our reinsurers or retrocessionaires are unable to meet their obligations under these agreements, the Company would not realize the full value of the reinsurance recoverable balances. The effect of ceded reinsurance on net premiums written and earned and on net loss and LAE for the three months ended March 31, 2025 and 2024 was as follows: For the Three Months Ended March 31, 2025 2024 Premiums written Direct $ 5,017 $ 8,831 Assumed ( 943 ) ( 508 ) Ceded ( 25 ) ( 9 ) Net $ 4,049 $ 8,314 Premiums earned Direct $ 4,991 $ 8,546 Assumed 2,706 3,865 Ceded ( 13 ) ( 3 ) Net $ 7,684 $ 12,408 Loss and LAE Gross loss and LAE $ 385 $ 12,375 Loss and LAE ceded ( 8,008 ) ( 750 ) Net $ ( 7,623 ) $ 11,625 The Company's reinsurance recoverable on unpaid losses balance as at March 31, 2025 was $ 549,350 (December 31, 2024: $ 571,331 ) presented in the Condensed Consolidated Balance Sheets. As of March 31, 2025, the total allowance for expected credit losses on the Company's reinsurance recoverable balance was $ 849 (December 31, 2024: $ 2,963 ). The following table provides a reconciliation of the beginning and ending balances of the allowance for expected credit losses on reinsurance recoverable for the three months ended March 31, 2025 and 2024: For the Three Months Ended March 31, 2025 2024 Allowance for expected credit losses on reinsurance recoverable, beginning of period $ 2,963 $ 3,240 Decrease in allowance for expected credit losses on reinsurance recoverable where credit losses were previously recognized ( 2,114 ) ( 802 ) Allowance for expected credit losses on reinsurance recoverable, end of period $ 849 $ 2,438 On December 27, 2018, Cavello Bay Reinsurance Limited ("Cavello") and Maiden Reinsurance entered into a retrocession agreement pursuant to which certain assets and liabilities associated with the U.S. treaty reinsurance business held by Maiden Reinsurance were 100.0 % retroceded to Cavello in exchange for a ceding commission. The reinsurance recoverable on unpaid losses due from Cavello under this retrocession agreement was $ 36,522 at March 31, 2025 (December 31, 2024: $ 35,357 ). The recoverable due from Cavello is net of an allowance for expected credit losses of $ 762 as at March 31, 2025 (December 31, 2024: $ 2,633 ). On July 31, 2019, Maiden Reinsurance and Cavello entered into a Loss Portfolio Transfer and Adverse Development Cover Agreement ("LPT/ADC Agreement") pursuant to which Cavello assumed the loss reserves as of December 31, 2018 associated with the AmTrust Quota Share in excess of a $ 2,178,535 retention up to $ 600,000 , in exchange for a retrocession premium of $ 445,000 . The $ 2,178,535 retention is subject to adjustment for paid losses subsequent to December 31, 2018. The LPT/ADC Agreement provides Maiden Reinsurance with $ 155,000 in adverse development cover over its carried AmTrust Quota Share loss reserves at December 31, 2018. The LPT/ADC Agreement meets the criteria for risk transfer and is thus accounted for as retroactive reinsurance. Cumulative ceded losses exceeding $ 445,000 are recognized as a deferred gain liability and amortized into income over the settlement period of the ceded reserves in proportion to cumulative losses collected over the estimated ultimate reinsurance recoverable. The amount of the deferral is recalculated each period based on loss payments and updated estimates. 27 MAIDEN HOLDINGS, LTD. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (in thousands of U.S. dollars, except share and per share data) 8. Reinsurance (continued) As of March 31, 2025, the reinsurance recoverable on unpaid losses under the LPT/ADC Agreement was $ 509,938 while the deferred gain liability under the LPT/ADC Agreement was $ 103,968 (December 31, 2024: $ 532,910 and $ 104,955 , respectively). The recoverable due under the LPT/ADC Agreement is net of an allowance for expected credit losses of $ 30 as at March 31, 2025 (December 31, 2024: $ 319 ). Amortization of the deferred gain was $ 5,888 for the three months ended March 31, 2025 since cumulative paid losses exceed the minimum risk retention under the LPT/ADC Agreement (year ended December 31, 2024: $ 4,099 ). At March 31, 2025, $ 41,045 was remaining in available coverage under the LPT/ADC Agreement (December 31, 2024: $ 45,946 ). During the three months ended March 31, 2025, the Company received $ 28,162 in loss recoveries from Cavello under the LPT/ADC Agreement (year ended December 31, 2024: $ 20,825 ). The favorable loss development on Workers Compensation business previously commuted back to AmTrust which are contractually covered by the LPT/ADC Agreement reduced the reinsurance recoverable by $ — for the three months ended March 31, 2025 (year ended December 31, 2024: $ 26,200 ). The table below shows the components of the decrease in the reinsurance recoverable on unpaid losses under the LPT/ADC Agreement for the three months ended March 31, 2025 and the year ended December 31, 2024: 2025 2024 Opening Balance $ 532,910 $ 515,463 Adverse PPD covered under the LPT/ADC Agreement (1) 4,901 64,338 Favorable PPD on commuted Workers Compensation business — ( 26,200 ) Recoveries received under the LPT/ADC Agreement ( 28,162 ) ( 20,825 ) Change in credit loss allowance on reinsurance recoverable under LPT/ADC Agreement 289 134 Reinsurance recoverable on unpaid losses under the LPT/ADC Agreement $ 509,938 $ 532,910 (1) Adverse PPD covered under the LPT/ADC Agreement for the three months ended March 31, 2025 is due to foreign currency translation adjustments on the re-measurement of net loss reserves and insurance related liabilities denominated in British pound and euro. The table below shows the components of the decrease in the deferred gain for the LPT/ADC Agreement for the three months ended March 31, 2025 and the year ended December 31, 2024: 2025 2024 Opening Balance $ 104,955 $ 70,916 Adverse PPD covered under the LPT/ADC Agreement (1) 4,901 64,338 Favorable PPD on commuted Workers Compensation business — ( 26,200 ) Amortization of deferred gain for the LPT/ADC Agreement ( 5,888 ) ( 4,099 ) Deferred gain liability for the LPT/ADC Agreement $ 103,968 $ 104,955 (1) Adverse PPD covered under the LPT/ADC Agreement for the three months ended March 31, 2025 is due to foreign currency translation adjustments on the re-measurement of net loss reserves and insurance related liabilities denominated in British pound and euro . Cavello provided collateral in the form of a letter of credit in the amount of $ 445,000 to AmTrust under the LPT/ADC Agreement. Cavello is subject to additional collateral funding requirements as explained in Note 10. Related Party Transactions. As of March 31, 2025, the amount of collateral required was $ 455,396 (December 31, 2024 - $ 484,721 ). Under the terms of the LPT/ADC Agreement, the covered losses associated with the Commutation and Release Agreement with AmTrust are eligible to be covered but recoverable only when such losses are paid or settled by AII or its affiliates, provided such losses and other related amounts shall not exceed $ 312,786 . Cavello's parent company, Enstar Group Limited, has credit ratings of BBB+ from both Standard & Poor's and Fitch Ratings at March 31, 2025 . 28 MAIDEN HOLDINGS, LTD. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (in thousands of U.S. dollars, except share and per share data) 9. Reserve for Loss and Loss Adjustment Expenses The Company uses both historical experience and industry-wide loss development factors to provide a reasonable basis for estimating future losses. In the future, certain events may be beyond the control of management, such as changes in law, judicial interpretations of law, and rates of inflation, which may favorably or unfavorably impact the ultimate settlement of the Company’s loss and LAE reserves. The anticipated effect of inflation is implicitly considered when estimating liabilities for loss and LAE. While anticipated changes in claim costs due to inflation are considered in estimating the ultimate claim costs, changes in the average severity of claims are caused by a number of factors that vary with the individual type of policy written. Ultimate losses are projected based on historical trends adjusted for implemented changes in underwriting standards, claims handling, policy provisions, and general economic trends. Those anticipated trends are monitored based on actual development and are modified if necessary. The reserving process begins with the collection and analysis of paid losses and incurred claims data for each of the Company's contracts. While reserves are mostly reviewed on a contract by contract basis, paid loss and incurred claims data is also aggregated into reserving segments. The segmental data is disaggregated by reserving class and further disaggregated by either accident year (i.e. the year in which the loss event occurred) or by underwriting year (i.e. the year in which the contract generating the premium and losses incepted). In cases where the Company uses underwriting year information, reserves are subsequently allocated to the respective accident year. The reserve for loss and LAE consists of: March 31, 2025 December 31, 2024 Reserve for reported loss and LAE $ 364,021 $ 383,087 Reserve for losses incurred but not reported ("IBNR") 393,265 410,592 Reserve for loss and LAE $ 757,286 $ 793,679 The following table represents a reconciliation of our beginning and ending gross and net loss and LAE reserves: For the Three Months Ended March 31, 2025 2024 Gross loss and LAE reserves, January 1 $ 793,679 $ 867,433 Less: reinsurance recoverable on unpaid losses, January 1 571,331 564,331 Net loss and LAE reserves, January 1 222,348 303,102 Net incurred losses related to: Current year 4,738 5,062 Prior years ( 12,361 ) 6,563 ( 7,623 ) 11,625 Net paid losses related to: Current year ( 2,152 ) ( 125 ) Prior years ( 19,231 ) ( 59,590 ) ( 21,383 ) ( 59,715 ) Change in deferred gain on retroactive reinsurance 987 ( 4,982 ) GLS run-off business acquired or assumed ( 473 ) — Effect of foreign exchange rate movements 14,080 ( 5,497 ) Net loss and LAE reserves, March 31 207,936 244,533 Reinsurance recoverable on unpaid losses, March 31 549,350 569,346 Gross loss and LAE reserves, March 31 $ 757,286 $ 813,879 Prior period loss development ("PPD") arises from changes to loss estimates recognized in the current year that relate to loss reserves established in previous calendar years. The favorable or unfavorable development reflects changes in management's best estimate of the ultimate losses under the relevant reinsurance policies after considerable review of changes in actuarial assessments. 29 MAIDEN HOLDINGS, LTD. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (in thousands of U.S. dollars, except share and per share data) 9. Reserve for Loss and Loss Adjustment Expenses (continued) The following table summarizes the (favorable) adverse prior period development experienced in each of our reportable segments for the three months ended March 31, 2025 and 2024: For the Three Months Ended March 31, Prior Year Loss Development (favorable) adverse 2025 2024 Diversified Reinsurance $ ( 4,557 ) $ ( 655 ) AmTrust Reinsurance ( 7,804 ) 7,218 Total Prior Year Development $ ( 12,361 ) $ 6,563 Diversified Reinsurance Segment In the Diversified Reinsurance segment, there was favorable PPD of $ 4,557 for the three months ended March 31, 2025 (2024: favorable $ 655 ). The favorable PPD for the three months ended March 31, 2025 was primarily driven by favorable development in GLS business lines, and other runoff business. Prior year development for the three months ended March 31, 2024 was driven by favorable development in GLS and other runoff business lines partly offset by adverse development in International business. AmTrust Reinsurance Segment The table below shows prior year loss development for the AmTrust Reinsurance segment for the three months ended March 31, 2025 and 2024: For the Three Months Ended March 31, 2025 2024 Prior Year Loss Development (favorable) adverse AmTrust Quota Share $ ( 1,655 ) $ 5,000 LPT/ADC Agreement ( 6,176 ) ( 317 ) European Hospital Liability Quota Share 27 2,535 Total AmTrust Reinsurance PPD $ ( 7,804 ) $ 7,218 In the AmTrust Reinsurance segment, net favorable PPD was $ 7,804 during the three months ended March 31, 2025 (2024: adverse $ 7,218 ) as detailed in the table above. Net favorable PPD for the three months ended March 31, 2025 was primarily from amortization of the deferred gain liabilty on the LPT/ADC Agreement of $ 5,888 which reduced net losses incurred in the current period; in addition there was a reduction of $ 289 in the credit loss allowance for reinsurance recoverable under the LPT/ADC Agreement for the three months ended March 31, 2025. Net adverse PPD for the three months ended March 31, 2024 was primarily from the AmTrust Quota Share and European Hospital Liability. In the AmTrust Quota Share, U.S. Program business experienced additional adverse development from construction defect coverage for accident years 2015 to 2018 as new claims emergence was significantly greater than expected; this was partly offset by continued favorable development within Workers Compensation business for accident years 2014 to 2017. Net adverse loss development on European Hospital Liability Quota Share was primarily driven by emergence of loss data from adverse claim verdicts on older claims, resulting in strengthening of loss development tail on underwriting years 2011 to 2014. Change in Recoverable for LPT/ADC Agreement The reconciliation of the beginning and ending gross and net loss and LAE reserves included a net decrease in the deferred gain on retroactive reinsurance of $ 987 for the three months ended March 31, 2025 (2024: $ 4,982 increase) due to a decrease in the deferred gain and related reinsurance recoverable on unpaid losses under the LPT/ADC Agreement with Cavello of $ 987 for the three months ended March 31, 2025 (2024: $ 5,000 increase). The decrease in the deferred gain on retroactive reinsurance of $ 987 for the three months ended March 31, 2025 included amortization of the deferred gain on the LPT/ADC Agreement of $ 5,888 partly offset by adverse PPD of $ 4,901 that was the result of foreign currency translation adjustments on the re-measurement of net loss liabilities denominated in British pound and euro on loss reserves covered under the LPT/ADC Agreement. Please refer to Note 8. Reinsurance for tables that show the components of the decrease in the reinsurance recoverable on unpaid losses under the LPT/ADC Agreement and the related deferred gain for the three months ended March 31, 2025 and the year ended December 31, 2024 . 30 MAIDEN HOLDINGS, LTD. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (in thousands of U.S. dollars, except share and per share data) 10. Related Party Transactions The Founding Shareholders of the Company were Michael Karfunkel, George Karfunkel and Barry Zyskind. Based on each individual's most recent public filing, Leah Karfunkel (wife of the late Michael Karfunkel), George Karfunkel and Barry Zyskind (the Company's non-executive chairman) each own or control less than 5.0 % of the Company's outstanding common shares. Leah Karfunkel and George Karfunkel are directors of AmTrust, and Barry Zyskind is the chief executive officer and chairman of AmTrust. Leah Karfunkel, George Karfunkel and Barry Zyskind own or control approximately 55.2 % of the ownership interests of Evergreen Parent, L.P., the ultimate parent of AmTrust. The following describes transactions that have transpired between the Company and AmTrust: AmTrust Quota Share Effective July 1, 2007, the Company and AmTrust entered into a master agreement, as amended ("Master Agreement"), by which they caused Maiden Reinsurance and AII to enter into the AmTrust Quota Share by which AII retroceded to Maiden Reinsurance an amount equal to 40 % of the premium written by subsidiaries of AmTrust, net of the cost of unaffiliated inuring reinsurance and 40 % of losses. The Master Agreement further provided that AII receive a ceding commission of 31 % of ceded written premiums. On June 11, 2008, Maiden Reinsurance and AII amended the AmTrust Quota Share to add Retail Commercial Package Business to the Covered Business (as defined in the AmTrust Quota Share). AII receives a ceding commission of 34.375 % on Retail Commercial Package Business. On July 1, 2016, the agreement was renewed through June 30, 2019. Effective July 1, 2018, the amount AEL ceded to Maiden Reinsurance was reduced to 20 %. Effective July 1, 2013, for the Specialty Program portion of Covered Business only, AII was responsible for ultimate net loss otherwise recoverable from Maiden Reinsurance to the extent that the loss ratio to Maiden Reinsurance, which shall be determined on an inception to date basis from July 1, 2007 through the date of calculation, is between 81.5 % and 95 % ("Loss Corridor"). Above and below the Loss Corridor, Maiden Reinsurance continued to reinsure losses at its proportional 40 % share of the AmTrust Quota Share. Effective July 31, 2019, the Loss Corridor was amended such that the maximum amount covered is $ 40,500 , the amount calculated by Maiden Reinsurance for the Loss Corridor coverage as of March 31, 2019. Any development above this maximum amount will be subject to the coverage of the LPT/ADC Agreement. Effective January 1, 2019, Maiden Reinsurance and AII entered into a partial termination amendment ("Partial Termination Amendment") which amended the AmTrust Quota Share. The Partial Termination Amendment provided for the cut-off of the ongoing and unearned premium of AmTrust’s Small Commercial Business and U.S. Specialty Risk and Extended Warranty ("Terminated Business") as of December 31, 2018. Under the Partial Termination Amendment, the ceding commission payable by Maiden Reinsurance for its remaining in-force business immediately prior to January 1, 2019 increased by five percentage points with respect to in-force remaining business (excluding Terminated Business) and related unearned premium as of January 1, 2019. Subsequently, on January 30, 2019, Maiden Reinsurance and AII agreed to terminate the remaining business subject to the AmTrust Quota Share on a run-off basis effective as of January 1, 2019. Effective July 31, 2019, Maiden Reinsurance and AII entered into a Commutation and Release Agreement which provided for AII to assume all reserves ceded by AII to Maiden Reinsurance with respect to its proportional 40 % share of the ultimate net loss under the AmTrust Quota Share related to the commuted business including: (a) all losses incurred in Accident Year 2017 and Accident Year 2018 under California workers' compensation policies and as defined in the AmTrust Quota Share ("Commuted California Business"); and (b) all losses incurred in Accident Year 2018 under New York workers' compensation policies ("Commuted New York Business"), and together with the Commuted California Business ("Commuted Business") in exchange for the release and full discharge of Maiden Reinsurance's obligations to AII with respect to the Commuted Business. The Commuted Business excludes any business classified by AII as Specialty Program or Specialty Risk business. AII and Maiden Reinsurance also agreed that as of July 31, 2019, the AmTrust Quota Share was deemed amended as applicable so that the Commuted Business is no longer included as part of Covered Business under the AmTrust Quota Share. On January 30, 2019, in connection with the termination of the reinsurance agreement described above, the Company and AmTrust entered into a second amendment to the Master Agreement between the parties, originally entered into on July 3, 2007, to remove the provisions requiring AmTrust to reinsure business with the Company. Please refer to Note 10. Related Party Transactions in the Annual Report on Form 10-K for the year ended December 31, 2024 for further details. European Hospital Liability Quota Share Effective April 1, 2011, Maiden Reinsurance entered into the European Hospital Liability Quota Share with AEL and AIU DAC. Pursuant to the terms of the European Hospital Liability Quota Share, Maiden Reinsurance assumed 40 % of the premiums and losses related to policies classified as European Hospital Liability, including associated liability coverages and policies covering physician defense costs, written or renewed on or after April 1, 2011. The European Hospital Liability Quota Share also covers policies written or renewed on or before March 31, 2011, but only with respect to losses that occur, accrue or arise on or after April 1, 2011. The maximum limit of liability attaching shall be € 5,000 (€ 10,000 effective January 1, 2012) or currency equivalent (on a 100 % basis) per original claim for any one original policy. Maiden Reinsurance paid a ceding commission of 5 % on contracts assumed under the European Hospital Liability Quota Share. Effective July 1, 2016, the European Hospital Liability Quota Share was amended such that Maiden Reinsurance assumes from AEL 32.5 % of the premiums and losses of all policies written or renewed on or after July 1, 2016 until June 30, 2017 and 20 % of all policies written or renewed on or after July 1, 2017. Thereafter, on January 30, 2019, Maiden Reinsurance, AEL and AIU DAC agreed to terminate the European Hospital Liability Quota Share on a run-off basis effective as of January 1, 2019. 31 MAIDEN HOLDINGS, LTD. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (in thousands of U.S. dollars, except share and per share data) 10. Related Party Transactions (continued) Effective July 1, 2022, Maiden Reinsurance and AIU DAC entered into an agreement ("Commutation Agreement") which provided for AIU DAC to assume all reserves ceded by AIU DAC to Maiden Reinsurance with respect to AIU DAC’s French Medical Malpractice exposures for underwriting years 2012 through 2018 reinsured by Maiden Reinsurance under the European Hospital Liability Quota Share. In accordance with the Commutation Agreement, Maiden Reinsurance paid $ 31,291 (€ 29,401 ) to AIU DAC, which is the sum of net ceded reserves of $ 27,625 (€ 25,956 ) and an agreed exit cost of $ 3,666 (€ 3,444 ). As a result of the Commutation Agreement, Maiden Reinsurance reduced its exposure to AmTrust's Hospital Liability business, but still has exposure to Italian medical malpractice liabilities under the European Hospital Liability Quota Share. The table below shows the effect of both of these quota share arrangements with AmTrust on the Company's Condensed Consolidated Income Statements for the three months ended March 31, 2025 and 2024, respectively: For the Three Months Ended March 31, 2025 2024 Gross and net premiums written $ ( 942 ) $ ( 505 ) Net premiums earned 2,684 3,417 Net loss and LAE ( 787 ) ( 9,018 ) Commission and other acquisition expenses ( 2,267 ) ( 1,298 ) Collateral provided to AmTrust Pursuant to the terms of the LPT/ADC Agreement, Maiden Reinsurance, Cavello and AmTrust and certain of its affiliated companies entered into a Master Collateral Agreement (“MCA”) to define and enable the operation of collateral provided under the AmTrust Quota Share. Under the MCA, Cavello provided letters of credit on behalf of Maiden Reinsurance to AmTrust in an amount representing Cavello’s obligations under the LPT/ADC Agreement. Because these letters of credit replaced other collateral previously provided directly by Maiden Reinsurance to AmTrust, the MCA coordinates the collateral protection that will be provided to AmTrust to ensure that no gaps in collateral funding occur by operation of the LPT/ADC Agreement and related MCA. As a result of entering into both the LPT/ADC Agreement and the MCA, certain post-termination endorsements (“PTEs”) to the AmTrust Quota Share between AII and Maiden Reinsurance were required. Effective July 31, 2019, the PTEs: i) enable the operation of both the LPT/ADC Agreement and MCA by making provision for certain forms of collateral, including letters of credit provided by Cavello on Maiden Reinsurance’s behalf, and further defines the permitted use and return of collateral; and ii) increase the required funding percentage for Maiden Reinsurance under the collateral arrangements between the parties to 105 % of its obligations, subject to a minimum excess funding requirement of $ 54,000 , as may be mutually amended by the parties from time to time. Under certain defined conditions, Maiden Reinsurance may be required to increase this funding percentage to 110 %. Effective March 16, 2020, Maiden Reinsurance discontinued as a Bermuda company and completed its re-domestication to the State of Vermont. Bermuda is a Solvency II equivalent jurisdiction and the State of Vermont is not such a jurisdiction; therefore, the collateral provided under the respective agreements with AmTrust subsidiaries was strengthened to reflect the impact of the re-domestication concurrent with the date of Maiden Reinsurance’s re-domestication to Vermont. Maiden Reinsurance and AmTrust agreed to: 1) amend the AmTrust Quota Share pursuant to Post Termination Endorsement No. 2 effective March 16, 2020; and 2) amend the European Hospital Liability Quota Share pursuant to Post Termination Endorsement No. 1 effective March 16, 2020. Pursuant to the terms of Post Termination Endorsement No. 2 to the AmTrust Quota Share, Maiden Reinsurance strengthened the collateral protection provided by Maiden Reinsurance to AII by increasing the required funding percentage for Maiden Reinsurance under the collateral arrangements between the parties to 110 % of its obligations, subject to a minimum excess funding requirement of $ 54,000 , as may be mutually amended by the parties from time to time. Post Termination Endorsement No. 2 also sets forth conditions by which the funding percentage will be reduced and the sequence of how collateral will be utilized as obligations, as defined under the AmTrust Quota Share, are satisfied. Pursuant to the terms of Post Termination Endorsement No. 2, the funding percentage was reduced to 107.5 % during the first quarter of 2023. Pursuant to the terms of Post Termination Endorsement No. 3 to the AmTrust Quota Share, AmTrust has agreed to eliminate the minimum excess funding requirement of $ 54,000 in the AmTrust Quota Share between All and Maiden. Collateral on the AmTrust Quota Share will now solely be tied to a contractually agreed percentage and is expected to be reduced from a current level of 107.5 % to 105 % during the second or third quarter of 2025 when its obligations are expected to decline below the $ 500,000 threshold. The terms of Post Termination Endorsement No. 3 was effective upon the execution and delivery of the AR Loan Agreement and the Premium Repayment Loan Agreement approved by the Vermont DFR on February 7, 2025. Pursuant to the terms of Post Termination Endorsement No. 1 to the European Hospital Liability Quota Share, Maiden Reinsurance strengthened the collateral protection provided by Maiden Reinsurance to AEL and AIU DAC by increasing the required funding percentage for Maiden Reinsurance under the collateral arrangements between the parties to the greater of 120 % of the Exposure (as defined therein) and the amount of security required to offset the increase in the Solvency Capital Requirement (“SCR”) that results from the changes in the SCR which arise out of Maiden Reinsurance's re-domestication as compared to the SCR calculation if Maiden Reinsurance had remained domesticated in a Solvency II equivalent jurisdiction with a solvency ratio above 100 % and provided collateral equivalent to 100 % of the Exposure. 32 MAIDEN HOLDINGS, LTD. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (in thousands of U.S. dollars, except share and per share data) 10. Related Party Transactions (continued) Pursuant to the terms of Post Termination Endorsement No. 2 to the European Hospital Liability Quota Share, AmTrust has also agreed to reduce the collateral funding percentage on the European Hospital Liability Quota Share from 120 % to 105 %, on the effective date of this endorsement, which was approved by the Vermont DFR on February 19, 2025. On December 31, 2024, Maiden Reinsurance and AmTrust entered into a Loan Agreement (the “Premium Repayment Loan Agreement”) by which Maiden Reinsurance will repay AII the principal amount of $ 24,259 representing settlement of a dispute over cessions of uncollectible ceded premiums written made by AII to Maiden Reinsurance, payable by Maiden Reinsurance in quarterly installments through the maturity date of December 31, 2032. This settlement was recognized on the Consolidated Balance Sheets as reinsurance losses payable within accrued expenses and other liabilities at December 31, 2024. AmTrust may offset any amount payable against any amount due and unpaid by Maiden Reinsurance, under any agreement between AmTrust or its affiliate and Maiden Reinsurance or its affiliate, including without limitation, the European Hospital Liability Quota Share, dated April 1, 2011, as amended. Interest is payable at a rate equivalent to the Fed Funds rate plus 150 basis points per annum under the terms of Premium Repayment Loan Agreement. a) AmTrust Quota Share To provide AmTrust's U.S. insurance subsidiaries with credit for reinsurance on their statutory financial statements, AII, as the direct reinsurer of AmTrust's insurance subsidiaries, established trust accounts ("Trust Accounts") for their benefit. Maiden Reinsurance has provided appropriate collateral to secure its proportional share under the AmTrust Quota Share of AII's obligations to the AmTrust subsidiaries to whom AII is required to provide collateral which can include: (a) assets loaned by Maiden Reinsurance to AII for deposit into the Trust Accounts, pursuant to a loan agreement between those parties; (b) assets transferred by Maiden Reinsurance for deposit into the Trust Accounts; or (c) a letter of credit obtained by Maiden Reinsurance and delivered to an AmTrust subsidiary on AII's behalf. Maiden Reinsurance may provide any or a combination of these forms of collateral, provided that the aggregate value thereof equals Maiden Reinsurance's proportionate share of its obligations under the AmTrust Quota Share. The collateral requirements under the AmTrust Quota Share with AII are presently satisfied as follows: • On January 1, 2025, Maiden Reinsurance and AmTrust amended the terms of the loan agreement provided by Maiden Reinsurance to AII. Under the revised terms, an Amended and Restated Loan Agreement was entered into effective January 1, 2025 (the “AR Loan Agreement”), by which the principal amount of the collateral loan will be repaid (subject to funding of collateral requirements) on or before the revised maturity date of January 1, 2033 pursuant to a repayment schedule set forth in the AR Loan Agreement. The principal amount shall equal (a) $ 152,377 minus (b) the amount of payments and any prepayments made by or on behalf of AmTrust from time to time. Interest will be payable at a rate equivalent to the Fed Funds rate plus 150 basis points per annum under the terms of the AR Loan Agreement. • AmTrust may offset any amount payable against any amount due and unpaid by Maiden Reinsurance, under any agreement between AmTrust or its affiliate and Maiden Reinsurance or its affiliate, including without limitation, the AmTrust Quota Share and European Hospital Liability Quota Share dated April 1, 2011, as amended, between Maiden Reinsurance and AmTrust, any other reinsurance agreements between AmTrust or its affiliates and Maiden Reinsurance or its affiliates and the Premium Repayment Loan Agreement dated December 31, 2024 with respect to the settlement of certain ceded premium balances of $ 24,259 entered into between AII and Maiden Reinsurance. • Commencing on January 1, 2025, the outstanding balances under the AR Loan Agreement and Premium Repayment Loan Agreement are presented on the Company's balance sheet on a net basis. The outstanding net loan receivable was $ 128,118 at March 31, 2025 (December 31, 2024: $ 167,975 ). There was no allowance for expected credit losses recognized on the loan at March 31, 2025 and December 31, 2024. Interest is payable at a rate equivalent to the Federal Funds Effective Rate ("Fed Funds") plus 150 basis points per annum (December 31, 2024 - 200 basis points per annum on the original loan prior to the AR Loan agreement). • Net interest income on the net loan receivable was $ 598 in the three months ended March 31, 2025 (2024: $ 3,070 earned on the original Loan Agreement) with an effective yield of 1.9 % (2024: 7.3 % on the original Loan Agreement). Net interest income earned on the net loan receivable for the three months ended March 31, 2025 was offset by a non-recurring adjustment of $ 1,240 due to contractual reductions regarding the timing of paid loss settlements in 2024. The Company expects net interest income to be lower going forward as interest income on the AR Loan Agreement is now offset by interest payable on the Premium Repayment Loan Agreement from January 1, 2025. b) European Hospital Liability Quota Share Collateral has been provided to both AEL and AIU DAC under the European Hospital Liability Quota Share. For AEL, the amount of the collateral held in reinsurance trust accounts at March 31, 2025 was $ 130,845 (December 31, 2024: $ 123,681 ) and the accrued interest was $ 593 (December 31, 2024: $ 1,008 ). Asset Management Agreement Effective July 1, 2007, the Company entered into an asset management agreement with AII Insurance Management Limited ("AIIM"), a wholly owned subsidiary of AmTrust, pursuant to which AIIM agreed to provide investment management services to the Company. Effective January 1, 2018, AIIM provides investment management services for a quarterly fee of 0.02125 % of the average value of the account. The agreement may be terminated upon 30 days written notice by either party. The Company recorded $ 54 of investment management fees for the three months ended March 31, 2025 (2024: $ 57 ) under this agreement. 33 MAIDEN HOLDINGS, LTD. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (in thousands of U.S. dollars, except share and per share data) 10. Related Party Transactions (continued) On September 9, 2020, Maiden Reinsurance, AmTrust and AIIM entered into a novation agreement, effective July 1, 2020, which provided for the novation of the asset management agreement, dated January 1, 2018 between Maiden Reinsurance and AIIM, and the release by Maiden Reinsurance of AIIM's obligations under the asset management agreement. The novation mandates that AmTrust is to be bound by the terms of the asset management agreement in place of AIIM and AmTrust agrees to perform any and all past, present and future obligations of AIIM under the asset management agreement. On November 13, 2020, Maiden LF, Maiden GF, AmTrust and AIIM entered into a novation agreement, effective July 1, 2020, which provided for the novation of the asset management agreement, dated January 1, 2018 between Maiden LF, Maiden GF and AIIM, and the release by Maiden LF and Maiden GF of AIIM's obligations under the asset management agreement. The novation mandates that AmTrust is to be bound by the terms of the asset management agreement in place of AIIM and AmTrust agrees to perform any and all past, present and future obligations of AIIM under the asset management agreement. Renewal Rights Agreement - IIS Business On May 3, 2024, Maiden LF and Maiden GF entered into a Renewal Rights and Asset Purchase Agreement with AmTrust Nordic AB, a Swedish unit of 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 a Renewal Rights and Asset Purchase Agreement with AEL and 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 two Renewal Rights and Asset Purchase Agreements as described above are collectively referred to as the AmTrust Renewal Rights Agreements (“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 the requirements of the AmTrust Renewal Rights Agreements, or their contractual terms. As at March 31, 2025, Maiden LF and Maiden GF substantially completed all the main contractual obligations as per the AmTrust Renewal Rights Agreements. Combination Agreement with Kestrel Group On December 29, 2024, the Company entered into a combination agreement with Kestrel to combine and form a new, publicly listed specialty program group as discussed in Note 1. Basis of Presentation. AmTrust is a significant shareholder of Kestrel. Following closing of the transaction, Kestrel will continue to write business through its use of A.M. Best A- FSC XV insurance carriers, including Sierra Specialty Insurance Company, Rochdale Insurance Company, Park National Insurance Company, and Republic Fire and Casualty Insurance Company, all subsidiaries of AmTrust. In connection with the transaction, the combined company will have the option to acquire the Insurers from AmTrust for a period of up to three years after closing. Following completion of the transaction, the board of directors of the combined company will consist of seven directors, made up of four directors selected by an affiliate of Kestrel Intermediate Ledbetter Holdings LLC, two of whom will be independent under applicable securities laws and stock exchange rules, and three directors selected by AmTrust, two of whom will be independent under applicable securities laws and stock exchange rules. 34 MAIDEN HOLDINGS, LTD. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (in thousands of U.S. dollars, except share and per share data) 11. Commitments, Contingencies and Guarantees There are no material changes from the commitments, contingencies and concentrations previously disclosed in the Company’s Form 10-K for the year ended December 31, 2024. a) Concentrations of Credit Risk At March 31, 2025 and December 31, 2024, the Company’s assets where significant concentrations of credit risk may exist include investments, cash and cash equivalents, loan to related party (presented on a net basis from January 1, 2025), reinsurance balances receivable, reinsurance recoverable on paid and unpaid losses and funds withheld receivable. Please refer to " Note 8. Reinsurance " for additional information regarding the Company's credit risk exposure on its reinsurance counterparties including the impact of the LPT/ADC Agreement effective January 1, 2019. The Company requires its reinsurers to have adequate financial strength. The Company evaluates the financial condition of its reinsurers and monitors its concentration of credit risk on an ongoing basis. Provisions are made for amounts that are considered potentially uncollectible. Reinsurance receivable and recoverable balances, loan to related party, and the funds withheld receivable are reviewed for expected credit losses on a quarterly basis and are presented net of an allowance for expected credit losses. Letters of credit are provided by its reinsurers for material amounts recoverable as discussed in " Note 8. Reinsurance ". The Company manages the concentration of credit risk in its investment portfolio through issuer and sector exposure limitations. The Company believes it bears minimal credit risk in its cash on deposit. The Company also monitors the credit risk related to the loan to related party, reinsurance balances receivable and funds withheld receivable, within which the largest balances are due from AmTrust. AmTrust has a financial strength/credit rating of A- (Excellent) from A.M. Best at March 31, 2025. To mitigate credit risk, the Company generally has a contractual right of offset thereby allowing claims to be settled net of any premiums or loan receivable. The Company believes these balances as at March 31, 2025 will be fully collectible. b) Investment Commitments and Related Financial Guarantees The Company's total unfunded commitments on alternative investments was $ 41,248 at March 31, 2025 (December 31, 2024: $ 43,966 ) which included commitments for other investments and equity method investments. The table below shows the total unfunded commitments by type of investment as at March 31, 2025 and December 31, 2024: March 31, 2025 December 31, 2024 Fair Value % of Total Fair Value % of Total Private equity funds $ 23,802 57.7 % $ 28,258 64.3 % Investments in direct lending entities 2,475 6.0 % — — % Total unfunded commitments on other investments $ 26,277 63.7 % $ 28,258 64.3 % Total unfunded commitments on equity method investments $ 14,971 36.3 % $ 15,708 35.7 % Total unfunded commitments on alternative investments $ 41,248 100.0 % $ 43,966 100.0 % Certain of the Company's investments in limited partnerships are related to real estate joint ventures with interests in multi-property projects with varying strategies ranging from the development of properties to the ownership of income-producing properties. In certain of these joint ventures, the Company has provided certain indemnities, guarantees and commitments to certain parties such that it may be required to make payments now or in the future. Any loss for which the Company could be liable would be contingent on the default of a loan by the real estate joint venture entity for which the Company provided a financial guarantee to a lender. While the Company has committed to aggregate limits as to the amount of guarantees it will provide as part of its limited partnerships, guarantees are only provided on an individual transaction basis and are subject to the terms and conditions of each transaction mutually agreed by the parties involved. The Company is not bound to such guarantees without its express authorization. As discussed above, at March 31, 2025, guarantees of $ 67,710 (December 31, 2024: $ 67,740 ) were provided to lenders by the Company on behalf of real estate joint ventures, however, the likelihood of the Company incurring any losses pertaining to project level financing guarantees was determined to be remote. Therefore, no liability has been accrued under ASC 450-20. 35 MAIDEN HOLDINGS, LTD. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (in thousands of U.S. dollars, except share and per share data) 11. Commitments, Contingencies and Guarantees (continued) c) Operating Lease Commitments The Company leases office spaces and equipment under various operating leases expiring in various years through 2034. The Company's leases are currently classified as operating leases and none of them have non-lease components. For operating leases that have a lease term of more than twelve months, and whose lease payments are above a certain threshold, the Company recognizes a lease liability and a right-of-use asset in the Condensed Consolidated Balance Sheets at the present value of the remaining lease payments until expiration. The Company has contracted to lease office space in a building in New York City that commenced in April 2024, which created a significant right-of-use asset and a lease liability upon completion of certain leasehold improvements for the ten-year operating lease. The Company has occupied this space and capitalized the leased asset in the second quarter of 2024. As the lease contracts generally do not provide an implicit discount rate, the Company used the weighted-average discount rate of 8.5 %, representing its secured incremental borrowing rate, in calculating the present value of the lease liability. At March 31, 2025, the Company's future lease obligations of $ 1,880 (December 31, 2024: $ 1,909 ) were calculated based on the present value of future annual rental commitments excluding taxes, insurance and other operating costs for non-cancellable operating leases discounted using its secured incremental borrowing rate. This amount has been recognized on the Condensed Consolidated Balance Sheet as a lease liability within accrued expenses and other liabilities with an initial equivalent amount for the right-of-use asset presented as part of other assets . At March 31, 2025, the Company's right-of-use lease asset of $ 1,336 reflected certain lease incentives that were accepted which reduced the right-of-use asset and were separately capitalized under leasehold improvements to be depreciated over the effective term of the related lease agreements (December 31, 2024: $ 1,354 ). The Company has made an accounting policy election not to include renewal, termination, or purchase options that are not reasonably certain of exercise when determining the term of the borrowing. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants. The Company's weighted-average remaining lease term is approximately 9.5 years at March 31, 2025. Under Topic 842, Leases , the Company continues to recognize the related leasing expense on a straight-line basis over the lease term on the Condensed Consolidated Statements of Income. The Company's total lease expense was $ 99 for three months ended March 31, 2025 (2024: $ 146 ) recognized within general and administrative expenses consistent with the prior accounting treatment under Topic 840. At March 31, 2025, the scheduled maturity of the Company's operating lease liabilities are expected to be as follows: March 31, 2025 2025 $ 208 2026 277 2027 277 2028 278 2029 284 Thereafter 1,449 Discount for present value ( 893 ) Total discounted operating lease liabilities $ 1,880 d) Legal Proceedings Except as noted below, the Company is not a party to any material legal proceedings. From time to time, the Company is subject to routine legal proceedings, including arbitration, arising in the ordinary course of business. These legal proceedings generally relate to claims asserted by or against the Company in the ordinary course of insurance or reinsurance operations. Based on the Company's opinion, the eventual outcome of these legal proceedings is not expected to have a material adverse effect on its financial condition or results of operations. A putative class action complaint was filed against Maiden Holdings, Arturo M. Raschbaum, Karen L. Schmitt, and John M. Marshaleck in the United States District Court for the District of New Jersey on February 11, 2019. On February 19, 2020, the Court appointed lead plaintiffs, and on May 1, 2020, lead plaintiffs filed an amended class action complaint (the “Amended Complaint”). The Amended Complaint asserts violations of Section 10(b) of the Exchange Act and Rule 10b-5 (and Section 20(a) for control person liability) arising in large part from allegations that Maiden failed to take adequate loss reserves in connection with reinsurance provided to AmTrust. Plaintiffs further claim that certain of Maiden Holdings’ representations concerning its business, underwriting and financial statements were rendered false by the allegedly inadequate loss reserves, that these misrepresentations inflated the price of Maiden Holdings' common stock, and that when the truth about the misrepresentations was revealed, the Company’s stock price fell, causing Plaintiffs to incur losses. On September 11, 2020, a motion to dismiss was filed on behalf of all Defendants. On August 6, 2021, the Court issued an order denying, in part, Defendants’ motion to dismiss, ordering Plaintiffs to file a shorter amended complaint no later than August 20, 2021, and permitting discovery to proceed on a limited basis. 36 MAIDEN HOLDINGS, LTD. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (in thousands of U.S. dollars, except share and per share data) 11. Commitments, Contingencies and Guarantees (continued) On February 7, 2023, the District Court denied Plaintiffs’ motion for reconsideration of the District Court’s decision denying Plaintiffs’ objection to the Magistrate Judge’s December 2021 ruling on discovery. On May 26, 2023, the Company filed a Renewed Motion to Dismiss the Second Amended Complaint or, in the Alternative, for Summary Judgment, which has been fully briefed. On December 19, 2023, the U.S. District Court for the District of New Jersey granted summary judgment on plaintiffs’ claim for securities fraud under Section 10(b) of the Securities Exchange Act to Maiden Holdings, Ltd. and individual defendants Arturo Raschbaum, Karen Schmitt, and John Marshaleck. The Court held that the factual record failed to support, as a matter of law, plaintiffs’ allegations that the defendants had made false statements regarding the Company’s loss reserves. The Court also dismissed plaintiffs’ claims that the individual defendants were liable as control persons under Section 20(a) of the Securities Exchange Act for any such alleged false statements. Plaintiffs have appealed to the United States Court of Appeals for the Third Circuit. On December 26, 2024, WUSO Holding Corporation and 683 Capital Partners filed a lawsuit against Maiden Holdings North America, Ltd. and Maiden Holdings in the Supreme Court of the State of New York, County of New York, captioned WUSO Holding Corporation and 683 Capital Partners, LP v. Maiden Holdings North America, Ltd. and Maiden Holdings, Ltd., Index No. 659861/2024. The complaint alleges that Maiden’s sale of Maiden Reinsurance North America, Inc., which closed approximately six years ago from the date of the complaint, breached a sole provision of Maiden’s indenture governing its 2013 Senior Notes. Plaintiffs allege that principal and interest payable under the 2013 Senior Notes are due currently, rather than upon the stated maturity date of the 2013 Senior Notes. Maiden believes it has substantial procedural and substantive defenses to the asserted claims, and it intends to vigorously defend against these claims. As discussed in Note 1. Basis of Presentation , on December 29, 2024, the Company entered into a Combination Agreement with Kestrel. In connection with the Combination Agreement, (i) Bermuda NewCo filed a registration statement on Form S-4, dated March 24, 2025, with the SEC and a related prospectus, dated March 26, 2025, with respect to the Bermuda NewCo common shares to be issued to Company shareholders pursuant to the transaction; and (ii) the Company filed a definitive proxy statement on Schedule 14A, dated March 26, 2025 (collectively, the “proxy statement/prospectus”), in respect of the Special Meeting. On April 29, 2025, the Company's shareholders approved all proposals related to the transaction at the Special Meeting. As previously disclosed in the Company's Form 8-K filed on April 21, 2025, since the filing of the proxy statement/prospectus, seven purported shareholders of the Company have sent demand letters generally alleging that the proxy statement/prospectus is misleading and/or fails to disclose material information concerning, among other things: (i) certain financial projections; (ii) certain data and inputs underlying the financial analyses that support the fairness opinion provided by Insurance Advisory Partners LLC (“IAP”); and (iii) potential conflicts of interest of IAP. In addition, on April 9, 2025 and April 10, 2025, respectively, two separate complaints were filed by purported shareholders in the Supreme Court of the State of New York, County of New York against Maiden and its directors under the captions (i) Nathan Turner v. Maiden Holdings, Ltd. et al., Case No. 652257/2025 (the “Turner Complaint”); and (ii) Mark Thomas v. Maiden Holdings, Ltd. et al., Case No. 154730/2025 (together with the Turner Complaint, the “Complaints”). The Complaints allege that the proxy statement/prospectus is misleading and/or fails to disclose material information concerning, among other things (i) certain financial projections; (ii) certain data and inputs underlying the financial analyses that support the fairness opinion provided by IAP; and (iii) potential conflicts of interest of IAP, and bring claims for negligence and negligent misrepresentation and concealment under New York law. The Complaints seek, among other things, injunctions barring consummation of the transaction or, in the event that the transactions are consummated, damages resulting from the alleged violations. The Company denies the allegations in the Complaints and the demand letters, denies that any violation of law has occurred and believes that the claims asserted in the Complaints and demand letters are wholly without merit. We believe all of the above claims are without merit and we intend to vigorously defend ourselves. It is possible that additional lawsuits will be filed against the Company, its subsidiaries and its respective officers due to the diminution in value of our securities as a result of our operating results and financial condition. It is currently uncertain as to the effect of such litigation on our business, operating results and financial condition. 37 MAIDEN HOLDINGS, LTD. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (in thousands of U.S. dollars, except share and per share data) 12. Earnings per Common Share The following shows a summary of the elements used in calculating basic and diluted earnings per common share for the three months ended March 31, 2025 and 2024, respectively: For the Three Months Ended March 31, 2025 2024 Numerator: Net (loss) income $ ( 8,645 ) $ 1,459 Amount allocated to participating common shareholders (1) — ( 17 ) Net loss (income) allocated to common shareholders $ ( 8,645 ) $ 1,442 Denominator: Weighted average number of common shares – basic and diluted (1) 99,120,644 100,457,125 Basic and diluted (loss) earnings per share attributable to common shareholders $ ( 0.09 ) $ 0.01 . (1) Please refer to "Note 6. Shareholders' Equity" and "Note 14. Share Compensation and Pension Plans" in the Notes to Consolidated Financial Statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2024 for the terms and conditions of securities that could potentially be dilutive in the future. There were no potentially dilutive securities for the three months ended March 31, 2025 (2024: 0 ). 13. Income Taxes The Company recognized income tax expense of $ 12 for the three months ended March 31, 2025, compared to an income tax expense of $ 11 for the same respective period in 2024. The effective tax rate on the Company's net (loss) income differs from the statutory rate of zero percent under Bermuda law due to tax on foreign operations, primarily the U.S. and Sweden. A valuation allowance has been established against the net U.S. and International deferred tax assets which is primarily attributable to net operating losses and capital losses in the respective regions. At this time, the Company believes it is necessary to establish a valuation allowance against the U.S. and International net deferred tax assets as more evidence is needed regarding the utilization of these losses. At March 31, 2025, the Company has available net operating loss carry-forwards of $ 460,849 (December 31, 2024: $ 459,604 ) for income tax purposes. Approximately $ 379,855 (December 31, 2024: $ 379,855 ) of net operating loss ("NOL") carryforwards expire in various years beginning in 2029. As of March 31, 2025, approximately $ 80,994 or 17.6 % of the Company's NOL carryforwards have no expiry date under the relevant U.S. tax law (December 31, 2024 - $ 79,749 or 17.4 %) At March 31, 2025, the Company has remaining capital loss carry-forwards of $ 1,669 (December 31, 2024: $ 1,542 ) which will expire beginning in 2027. 38 MAIDEN HOLDINGS, LTD. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (in thousands of U.S. dollars, except share and per share data) 14. Assets Held for Sale Sale of Swedish Subsidiaries and Related IIS Operations On November 29, 2024, the Company entered into an agreement to sell its Swedish subsidiaries, Maiden LF and Maiden GF to an expanding group of international insurance and reinsurance companies headquartered in the United Kingdom (“Swedish Subsidiaries Sale”). Such transaction is subject to customary regulatory approvals. The sale will be an all-cash transaction and pursuant to the terms of the agreement, all existing staff and independent directors of both Maiden LF and Maiden GF will transition to the new ownership group. This sale is part of the Company's broader plan to divest its IIS businesses, which was the conclusion of a strategic review of the IIS business platform. The purpose of that review was to evaluate the strategic value of Maiden LF and Maiden GF in relation to their ongoing growth and profitability prospects, regulatory capital requirements and ability to create shareholder value in excess of the Company's target return on capital levels. As part of these transactions, Maiden LF and Maiden GF are no longer writing new business and their non-underwriting related assets and liabilities are represented as held-for-sale in our consolidated financial statements. Please see Note 10 — Related Party Transactions for details regarding the AmTrust Renewal Rights Agreements. None of the held-for-sale assets and liabilities in the table below include any underwriting related balances, including those related to the AmTrust Renewal Rights Agreement. Although Maiden LF and Maiden GF currently comprise a substantial portion of the Diversified Reinsurance segment, the Company has concluded that the sale does not constitute discontinued operations as it does not represent a strategic shift that will have a major effect on its ongoing operations and financial results. Pursuant to the terms of the Swedish Subsidiaries Sale agreement, any remaining historic business upon closing will be fully retroceded to the Company thus there will be continuing involvement regarding the historical reinsurance operations. However, pursuant to the terms of the Swedish Subsidiaries Sale, this transaction met the relevant held for sale criteria at December 31, 2024 and accordingly, any non-underwriting related assets and liabilities related to the sale consideration are classified as held-for-sale in the Condensed Consolidated Balance Sheets as at March 31, 2025 and December 31, 2024. All underwriting related balances are excluded from the held-for-sale assets and liabilities which amounted to net insurance liabilities of $ 5,839 as at March 31, 2025 (December 31, 2024 - $ 6,500 ). The Company estimated the fair value of the net assets held-for-sale to be based on the estimated selling price less costs to sell and these assets are classified as Level 2 within the fair value hierarchy as of March 31, 2025. The assets and liabilities classified as held for sale on the Company's Consolidated Balance Sheets as at March 31, 2025 and December 31, 2024 include the following: March 31, 2025 December 31, 2024 ASSETS Fixed maturities, available-for-sale, at fair value $ 5,902 $ 6,656 Cash and cash equivalents 12,976 13,349 Accrued investment income 60 125 Other assets 700 685 Total assets held for sale $ 19,638 $ 20,815 LIABILITIES Accrued expenses and other liabilities $ 645 $ 883 Total liabilities held for sale $ 645 $ 883 39 MAIDEN HOLDINGS, LTD. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (in thousands of U.S. dollars, except share and per share data) 15. Subsequent Events Asset Sales Subsequent to March 31, 2025, USQ Risk, a private equity investment held by the Company in the insurance distribution industry ("USQ") that is accounted for as an equity method investment completed an asset purchase agreement ("APA") with a third-party acquirer. The Company had previously provided seed capital to USQ via preference shares and had also received a common equity position in USQ which at the transaction date represented an 18.9 % holding in USQ. Pursuant to the terms of the agreement, the Company will receive a series of distributions commencing at closing. In addition to the distribution of $ 4,335 received on May 2, 2025, the Company presently estimates it could receive up to $ 13,580 in additional distributions from the USQ transaction. The Company currently estimates that the net present value of these potential distributions is approximately $ 14,188 . NASDAQ Listing Qualifications On April 2, 2025, the Company received a letter from the listing qualifications department staff of Nasdaq that Maiden's common shares failed to maintain a minimum bid price of $1.00 over the previous 30 consecutive business days as required by the Listing Rules of Nasdaq. Since then, Nasdaq has determined that for the last 12 consecutive business days, from April 21, 2025 to May 7, 2025, the closing bid price of the Company’s common shares has been at $ 1.00 per share or greater. Accordingly, the Company has regained compliance with Listing Rule 5550(a)(2), and this matter is now closed. Combination with Kestrel - Regulatory Approval Update On May 6, 2025, Maiden Reinsurance received approval from the Vermont DFR for the change of control related to the Combination Agreement with Kestrel along with approval for the extraordinary dividend required to complete the transaction. Other Maiden entities are still waiting for approvals regarding the change in control. As part of the approval granted by the Vermont DFR, Maiden Reinsurance will no longer be permitted to include the intercompany loan receivable from Maiden Holdings (and related accrued interest) as an admitted asset for statutory capital and reporting purposes. As a result, this will reduce Maiden Reinsurance's ratio of risk-based capital to total adjusted capital, which remains sufficient to support both the dividends related to the Combination Agreement with Kestrel and recurring annual dividends, and which require approval by the Vermont DFR. In addition, Maiden Reinsurance has agreed to not purchase any additional affiliated securities of the Company and its subsidiaries. 40