Maiden Holdings, Ltd. Announces Second Quarter 2024 Financial Results

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Exhibit 99.1PRESS RELEASE Maiden Holdings, Ltd.AnnouncesSecond Quarter 2024 Financial ResultsPEMBROKE, Bermuda, August 8, 2024 - Maiden Holdings, Ltd. (NASDAQ: MHLD) ("Maiden" or the "Company") today reported its results for the second quarter of 2024 which included the following key developments:• Book value per common share decreased 4.0% to $2.38 and adjusted book value per common share decreased 0.6% to $3.17 per common share at June 30, 2024.• Net loss attributable to Maiden common shareholders of $10.0 million or $0.10 per diluted common share for the second quarter of 2024.• Adjusted non-GAAP operating loss of $7.7 million or $0.08 per diluted common share for the second quarter of 2024.• Investment results decreased to $9.9 million for the second quarter of 2024 compared to $16.5 million in second quarter of 2023 including a 1.2% net retuon the alternative asset portfolio in the second quarter of 2024.• Deferred gain on the Company's Loss Portfolio Transfer and Adverse Development Cover Agreement ("LPT/ADC Agreement") with Cavello Bay Reinsurance Limited ("Cavello") increased by $2.3 million to $78.2 million at June 30, 2024, due to adverse prior year loss development ("PPD"), which is expected to be recoverable over time as future GAAP income with $76.8 million remaining in additional limit.• Recoveries under the LPT/ADC Agreement (and associated GAAP income recognition) expected to begin in the fourth quarter of 2024.• Deferred tax asset of $1.19 per common share still not yet recognized in book value per share, with approximately 45% of NOL carryforwards having no expiry date.• Patrick J.• Haveron, Maiden's Chief Executive Officer commented on the second quarter of 2024 financial results: "Despite the contributions of continuing positive investment results which moderated somewhat during the second quarter, and the stabilizing effects of our LPT/ADC Agreement, adjusted book value, which we believe represents Maiden's true economic value, fell slightly during the quarter.Mr. Haveron added, "Our active pursuit to strategically build a more consistent base of revenue and profits through fee-based income and distribution channels in the insurance and reinsurance industry remains a high priority for Maiden.• Leveraging our experience in insurance and reinsurance markets, these paths should further enable us to ultimately recognize and realize the significant deferred tax asset we have.• As a result, we have not made any new commitments to alternative investment opportunities.While our GAAP income statement continues to be impacted by adverse loss development, it's important to reinforce the point that much of this volatility is expected to be temporary as a significant portion is expected to be covered by our LPT/ADC Agreement with Cavello.• Approximately $5.6 million or 83% and $10.6 million or 80% of the total reported adverse PPD for the three and six months ended June 30, 2024, respectively, is expected to be covered by the LPT/ADC Agreement and is expected to ultimately retuover time to Maiden as future GAAP income, subject to certain thresholds in the LPT/ADC Agreement and the applicable GAAP accounting rules.• Our expectation that we will meet the thresholds to begin recoveries under the LPT/ADC Agreement in the fourth quarter of 2024 remains unchanged.As the benefits of the LPT/ADC Agreement begin to be amortized though our GAAP income statement, it reinforces why adjusted book value, which includes the $78.2 million deferred gain presently on the balance sheet, is a key metric in evaluating Maiden's value.• It's also worth noting that under the provisions of the LPT/ADC Agreement, we still have an additional $76.8 million in available limit to absorb subject loss development should it occur in the future.As noted, Maiden's consolidated balance sheet at June 30, 2024 does not reflect $119.2 million or $1.19 per common share in net U.S. deferred tax assets which still maintains a full valuation allowance.• Of the $338.2 million in net operating loss carryforwards that we hold, approximately $152.0 million or 44.9% of these loss carryforwards have no expiry date.• Despite the~PAGE-BREAK~recent adverse reserve development which has delayed the timing related to ultimately recognizing this asset, we believe the factors that will enable us to ultimately recognize these tax assets in the future, including our current strategic initiatives, continues to accumulate, particularly with our asset portfolio producing more current income.Mr. Haveron concluded, "Finally, during the second quarter via a 10b-5 trading plan implemented prior to June 30, 024, we continued our long-term capital management strategy and repurchased 747,561 common shares at an average price per share of $2.13 under our share repurchase plan.We expect to continue a disciplined and prudent approach to share repurchases as part of this program, particularly in periods of share weakness relative to our book value.Consolidated Results for the Quarter Ended June 30, 2024 Net loss for the three months ended June 30, 2024 was $10.0 million compared to a net loss of $2.9 million for the three months ended June 30, 2023 largely due to the following:• higher underwriting loss which was $9.8 million in the second quarter of 2024 compared to an underwriting loss of $9.3 million during the same respective period in 2023 which was influenced by:• adverse PPD of $6.8 million in the second quarter of 2024 compared to adverse PPD of $4.5 million during the same period in 2023; and• on a current accident year basis, underwriting loss of $3.0 million for the three months ended June 30, 2024 compared to an underwriting loss of $4.8 million for the same period in 2023.• lower total income from investment activities of $9.9 million for the three months ended June 30, 2024 compared to $16.5 million during the same respective period in 2023 which was comprised of:• net investment income of $7.0 million for the three months ended June 30, 2024 compared to $10.5 million for the same period in 2023;• net realized and unrealized investment gains of $1.5 million for the three months ended June 30, 2024 compared to net realized and unrealized investment gains of $1.1 million for the same period in 2023; and• interest in income of equity method investments of $1.5 million for the three months ended June 30, 2024 compared to income of $4.8 million for the same period in 2023.• corporate general and administrative expenses increased to $4.8 million for the three months ended June 30, 2024 compared to $2.9 million for the same respective period in 2023; and partly offset by:• nominal foreign exchange and other gains during the three months ended June 30, 2024, compared to foreign exchange and other losses of $2.6 million for the same respective period in 2023.• Net premiums written for the three months ended June 30, 2024 were $8.3 million compared to $6.9 million for the same period in 2023.• Net premiums written in the Diversified Reinsurance segment increased by $1.7 million or 26.0% for the three months ended June 30, 2024 compared to the same period in 2023 due to growth in direct premiums for Credit Life programs written by wholly owned Swedish subsidiaries Maiden LF and Maiden GF.• On May 3, 2024 and June 20, 2024, Maiden LF and Maiden GF entered into Renewal Rights Agreements with certain subsidiaries of AmTrust ("AmTrust Renewal Rights Agreements"), which are expected to cover the majority of Maiden LF and Maiden GF's primary business written in Sweden, Norway, other Nordic countries, the United Kingdom and Ireland; and is part of a broader plan to divest of the International Insurance Services ("IIS") business as a result of the Company's recently concluded strategic review of the IIS business platform.• Maiden LF and Maiden GF are no longer writing new business and should begin to experience declines in premium written during the second half of 2024.• Net premiums earned increased by $1.0 million for the three months ended June 30, 2024 compared to the same period in 2023 due to higher earned premiums in our Diversified Reinsurance segment driven by growth in Credit Life programs written by Maiden LF and Maiden GF.• Net investment income decreased by $3.6 million or 33.9% for the three months ended June 30, 2024 compared to the same period in 2023 primarily due to lower interest income earned on our funds withheld receivable.• This interest income decreased by $2.7 million in the second quarter of 2024 as loss reserves continued to be settled using the funds withheld receivable.• Average aggregate fixed income assets decreased by 41.2% due to continued run-off of our reinsurance liabilities previously written on prospective risks primarily through the funds withheld receivable.• The decrease in net investment income from fixed income assets was partially offset by higher annualized average book yields from fixed income assets, which include available-for-sale ("AFS") securities, cash and restricted cash, funds withheld receivable, and loan to related party.• The yield on fixed income assets increased to 4.8% for the three months ended June 30, 024 compared to 4.2% for the same period in 2023.• Our average fixed income assets are an average of the amounts disclosed in our quarterly U.S. GAAP consolidated financial statements.~PAGE-BREAK~Annualized yields on fixed income assets (including our related party loan) continue to rise partly due to 50.5% of our fixed income investments as of June 30, 2024 being invested in floating rate assets which enabled this component of our asset portfolio to respond to the current higher interest rate environment.The weighted average interest rate on our related party loan increased to 7.3% during the three months ended June 30, 2024, compared to 7.0% for the same period in 2023.Net realized and unrealized investment gains for the three months ended June 30, 2024 were $1.5 million compared to net gains of $1.1 million for the same period in 2023.This included net unrealized investment gains on alternative investments of $1.5 million in the second quarter of 2024 compared to net realized and unrealized gains of $1.9 million in the second quarter of 2023.Net loss and LAE increased by $2.4 million during the three months ended June 30, 2024 compared to the same period in 2023.Net loss and LAE for the second quarter of 2024 was impacted by net adverse PPD of $6.8 million compared to net adverse PPD of $4.5 million for the second quarter of 2023.The AmTrust Reinsurance segment had adverse PPD of $5.2 million in the second quarter of 2024 compared to adverse PPD of $3.2 million for the second quarter of 2023.The Diversified Reinsurance segment had adverse PPD of $1.6 million in the second quarter of 2024 compared to adverse PPD of $1.3 million for the second quarter of 2023.Of the total adverse PPD experienced in the AmTrust Reinsurance segment for the three months ended June 30, 2024 and 2023, approximately $5.6 million and $10.7 million, respectively, is recoverable under the LPT/ADC Agreement and is expected to be recognized as future GAAP income over time as recoveries are received subject to provisions of the LPT/ADC Agreement and applicable GAAP accounting rules.This represents 83.1% and 238.7% of the Company's total adverse PPD for the three months ended June 30, 2024 and 2023, respectively.Commission and other acquisition expenses were $4.8 million for the three months ended June 30, 2024 compared to $4.9 million for the same period in 2023.Total general and administrative expenses increased by $1.0 million, or 15.2% for the three months ended June 30, 2024, compared to the same period in 2023 due to higher professional, audit and legal fees.Excluding expenses related to the Company's IIS business, which is no longer writing new business and has entered into the AmTrust Renewal Rights Agreements, total general and administrative expenses increased 22.4% to $6.5 million for the three months ended June 30, 2024, compared to $5.3 million for the same period in 2023 due to higher professional, audit and legal fees.Consolidated Results for the six months ended June 30, 2024 Net loss for the six months ended June 30, 2024 was $8.5 million compared to a net loss of $14.3 million for the six months ended June 30, 2023 largely due to the following:• underwriting loss of $17.3 million in the six months ended June 30, 2024 compared to an underwriting loss of $17.5 million for the same period in 2023 driven by:• adverse PPD of $13.4 million for six months ended June 30, 2024 compared to adverse PPD of $8.2 million for the same period in 2023 mostly incurred within our AmTrust Reinsurance segment for both periods; and• on a current accident year basis, an underwriting loss of $3.9 million for the six months ended June 30, 2024 compared to an underwriting loss of $9.4 million for the same period in 2023.• total income from investment activities was $26.9 million for the six months ended June 30, 2024 compared to $27.0 million for the same period in 2023 which was comprised of:• net investment income decreased to $14.7 million for the six months ended June 30, 2024 compared to $20.1 million that was earned for the same period in 2023;• net realized and unrealized investment gains of $10.2 million for the six months ended June 30, 2024 compared to net realized and unrealized investment gains of $2.2 million for the same period in 2023; and• interest in income of equity method investments of $2.1 million for the six months ended June 30, 2024 compared to an interest in income of equity method investments of $4.8 million for the same period in 2023.• corporate general and administrative expenses increased to $10.1 million for the six months ended June 30, 2024 compared to $9.9 million for the same period in 2023; and partly offset by:• foreign exchange and other gains of $2.1 million for the six months ended June 30, 2024 compared to foreign exchange and other losses of $5.4 million earned for the same period in 2023.~PAGE-BREAK~Net premiums written for the six months ended June 30, 2024 were $16.7 million compared to $7.6 million for the same period in 2023.Net premiums written in our AmTrust Reinsurance segment were $(0.5) million for the six months ended June 30, 2024, compared to net premiums of $(5.8) million for the same period in 2023 which included negative gross and net premiums written of $6.1 million due to the cancellation of cases in a certain program in Specialty Risk and Extended Warranty.Net premiums written in our Diversified Reinsurance segment increased by $3.8 million or 28.1% for the six months ended June 30, 2024 compared to the same period in 2023 due to growth in direct premiums for Credit Life programs written by wholly owned Swedish subsidiaries Maiden LF and Maiden GF.Net premiums earned increased by $4.4 million for the six months ended June 30, 2024 compared to the same period in 2023 largely due to higher earned premiums of $2.5 million or 17.3% in our Diversified Reinsurance segment driven by growth in Credit Life programs written by Maiden LF and Maiden GF.There were also higher earned premiums of $1.9 million or 35.4% in our AmTrust Reinsurance segment due to negative earned premium adjustments made in the first quarter of 2023.Net investment income decreased by $5.4 million or 27.0% for the six months ended June 30, 2024 compared to the same period in 2023 largely due to lower interest income earned on our funds withheld balance which decreased by $5.2 million as claim payments continued to be settled through the funds held receivable.Average aggregate fixed income assets at June 30, 2024 decreased by 39.8% due to run-off of our reinsurance liabilities previously written on prospective risks primarily through the funds withheld receivable.Annualized average book yields increased to 4.7% for the six months ended June 30, 2024 compared to 4.0% for the same period in 2023 driven by floating rate investments which comprise 50.5% of our fixed income asset portfolio at June 30, 2024.This was largely due to the weighted average interest rate on our related party loan which increased to 7.3% during the six months ended June 30, 2024 compared to 6.7% for the same period in 2023.Total net realized and unrealized investment gains increased by $8.1 million for the six months ended June 30, 2024 compared to the same period in 2023 primarily due to unrealized gains in the private equity asset class of $8.1 million.Net unrealized investment gains on alternative investments were $10.5 million for the six months ended June 30, 2024 compared to net realized and unrealized gains of $2.9 million for the same period in 2023.Net loss and LAE increased by $4.2 million or 19.9% during the six months ended June 30, 2024 compared to the same period in 2023.Net loss and LAE was impacted by net adverse PPD of $13.4 million in 2024 compared to net adverse PPD of $8.2 million during 2023.Net adverse PPD of $12.5 million and $6.1 million was incurred in our AmTrust Reinsurance segment in the six months ended June 30, 2024 and 2023, respectively.Of the total adverse development experienced in the AmTrust Reinsurance segment during the six months ended June 30, 2024 and 2023, approximately $10.6 million and $12.3 million, respectively, is recoverable under the LPT/ADC Agreement and is expected to be recognized as future GAAP income over time as recoveries are received under the provisions of the LPT/ADC Agreement and applicable GAAP accounting rules.This represents 79.7% and 150.9% of the Company's total net adverse PPD for the six months ended June 30, 2024 and 2023, respectively.Commission and other acquisition expenses increased by $1.2 million or 13.4% for the six months ended June 30, 2024 compared to the same period in 2023 primarily due to lower earned premium adjustments in the AmTrust Reinsurance segment.The negative premium adjustments in the first quarter of 2023 resulted in lower commission costs and brokerage fees.Total general and administrative expenses decreased by $1.0 million or 5.9% for the six months ended June 30, 2024 compared to the same period in 2023 primarily due to lower incentive compensation costs.Excluding expenses related to the Company's IIS business, which is no longer writing new business and has entered into the AmTrust Renewal Rights Agreements, total general and administrative expenses decreased 4.7% to $13.3 million for the six months ended June 30, 2024, compared to $13.9 million for the same period in 2023 due to lower incentive compensation costs.Operating Results for the three and six months ended June 30, 2024 In addition to other adjustments, management adjusts reported GAAP net loss and underwriting results by excluding incurred losses and LAE covered by the LPT/ADC Agreement with Cavello.Such losses are fully recoverable from Cavello, and are expected to be reported as future GAAP income over time as recoveries are received subject to both the provisions of the LPT/ADC Agreement and the applicable GAAP accounting rules, therefore adjusting for these losses shows the ultimate economic benefit of the LPT/ADC Agreement to Maiden.Management presently expects recoveries under the LPT/ADC Agreement to begin before the end of 2024.Non-GAAP operating loss was $10.6 million or $0.11 per diluted common share for the second quarter of 2024 compared to non-GAAP operating earnings of $4.5 million or $0.04 per diluted common share for the second quarter of 2023.Adjusted to include net realized and unrealized investment gains and an interest in income of equity method investments which are recurring parts of investment results with the Company's underwriting activities in run-off, the non-GAAP operating loss was $7.7 million or $0.08 per diluted common share for the second quarter of 2024, compared to non-GAAP operating earnings of $10.4 million or $0.10 per diluted common share for the second quarter of 2023.~PAGE-BREAK~Non-GAAP operating loss was $15.6 million or $0.16 per diluted common share for the six months ended June 30, 2024, compared to a non-GAAP operating loss of $3.4 million or $0.03 per diluted common share for the same period in 2023.Adjusted to include net realized and unrealized investment gains and an interest in income of equity method investments which are recurring parts of investment results with the Company's underwriting activities in run-off, the non-GAAP operating loss was $3.3 million or $0.03 per diluted common share for the six months ended June 30, 2024, compared to non-GAAP operating earnings of $3.5 million or $0.03 per diluted common share for the same period in 2023.The unamortized deferred gain on retroactive reinsurance under the LPT/ADC Agreement with Cavello was $78.2 million as of June 30, 2024, an increase of $7.3 million compared to $70.9 million at December 31, 2023, driven by adverse prior year loss development of $10.1 million reported for policies under the AmTrust Quota Share for the six months ended June 30, 2024.These losses are recoverable under the LPT/ADC Agreement and are expected to be recognized as future GAAP income over time as recoveries are received under the provisions of the LPT/ADC Agreement and the applicable GAAP accounting rules.Adjusted for prior year reserve development under the AmTrust Quota Share which is fully recoverable from Cavello under the LPT/ADC Agreement, the non-GAAP net loss and LAE decreased by $2.3 million and $7.3 million for the three and six months ended June 30, 2024, respectively, compared to non-GAAP net loss and LAE that decreased by $10.7 million and $12.3 million for the three and six months ended June 30, 2023, respectively.The non-GAAP underwriting loss was $7.5 million and $10.0 million for the three and six months ended June 30, 2024, respectively, compared to non-GAAP underwriting income of $1.5 million and loss of $5.2 million for the three and six months ended June 30, 2023, respectively.The non-GAAP underwriting loss for the three and six months ended June 30, 2024 primarily included underwriting results in the AmTrust Reinsurance segment not covered by the LPT/ADC Agreement, specifically:• run-off of the AmTrust Quota Share with losses occurring after December 31, 2018;• adverse loss development of $0.1 million and $2.6 million for the European Hospital Liability Quota Share for the three and six months ended June 30, 2024, respectively;• underwriting losses in the Diversified Reinsurance segment of $2.8 million and $3.0 million for the three and six months ended June 30, 2024, respectively; and• please refer to the Non-GAAP Financial Measures tables in this earnings release for additional information on these non-GAAP financial measures and reconciliation of these measures to the appropriate GAAP measures.Quarterly Report on Form 10-Q for the Period Ended June 30, 2024 and Other Financial Matters The Company's Quarterly Report on Form 10-Q for the six months ended June 30, 2024 was filed with the U.S. Securities and Exchange Commission on August 8, 2024.Additional information on the matters reported in this news release along with other required disclosures can be found in that filing.Total assets were $1.4 billion at June 30, 2024 which decreased by $119.0 million compared to December 31, 2023 largely due to the continuing run-off of the Company's prior reinsurance liabilities.Shareholders' equity was $238.0 million at June 30, 2024 compared to $249.2 million at December 31, 2023.Adjusted shareholders' equity was $316.2 million at June 30, 2024 compared to $320.1 million at December 31, 2023, which includes an unamortized deferred gain under the LPT/ADC Agreement of $78.2 million at June 30, 2024 and $70.9 million at December 31, 2023.The Company's wholly owned subsidiary, Maiden Holdings North America, Ltd., holds net operating loss carryforwards ("NOLs") which were $338.2 million as of June 30, 2024.Approximately $152.0 million or 44.9% of the Company's NOL carryforwards have no expiry date under the relevant U.S. tax law.These NOLs, in combination with additional net deferred tax assets primarily related to our insurance liabilities, result in a net U.S. deferred tax asset (before valuation allowance) of $119.2 million or $1.19 per common share as of June 30, 2024.The net deferred tax assets are not presently recognized on the Company's balance sheet as a full valuation allowance is carried against them.During the three and six months ended June 30, 2024, Maiden Reinsurance continued its long-term capital management strategy via its previously implemented Rule 10b-5 trading plan and repurchased 747,561 and 1,099,672 common shares, respectively, at an average price per share of $2.13 and $2.06, respectively.Subsequent to the three months ended June 30, 2024 and through the period ended August 7, 2024, the Company repurchased 36,984 additional common shares at an average price per share of $2.00 under the Company's authorized common share repurchase plan.The Company's remaining share repurchase authorization was $69.3 million at August 7, 2024 under the Company's $100.0 million share repurchase plan, which was approved by the Company's Board of Directors on February 21, 2017.~PAGE-BREAK~On May 3, 2023, the Company's Board of Directors approved the repurchase, including the repurchase by Maiden Reinsurance in accordance with its investment guidelines, of up to $100.0 million of the Company's Senior Notes from time to time at market prices in open market purchases or as may be privately negotiated.The Company's current remaining authorization is $99.9 million for Senior Notes repurchases.As of June 30, 2024, the Company's indirect wholly owned subsidiary Genesis Legacy Solutions ("GLS") and its subsidiaries have insurance related liabilities of $23.9 million which consisted of total reserves of $17.6 million, an underwriting-related derivative liability of $4.0 million, and net deferred gains on retroactive reinsurance of $2.3 million.The Company presently does not anticipate any further contracts in the GLS legacy management segment, and no longer considers it part of its strategy to produce acceptable shareholder returns therefore no additional capital will be committed to new accounts in this unit.The Company is currently running off the small number of accounts GLS underwrote since its formation as previously reported in our Annual Report on Form 10-K for the year ended December 31, 2023.The Company no longer presents certain non-GAAP measures such as combined ratio and its related components in its news release or quarterly reports, as it believes that as the run-off of its reinsurance portfolios progresses, such ratios are increasingly not meaningful and of less value to readers as they evaluate our financial results.Quarterly Dividends The Company's Board of Directors did not authorize any quarterly dividends on its common shares during the three and six months ended June 30, 2024 and 2023.About Maiden Holdings, Ltd.Maiden Holdings, Ltd. is a Bermuda-based holding company formed in 2007.Maiden creates shareholder value by actively managing and allocating our assets and capital, including through ownership and management of businesses and assets mostly in the insurance and related financial services industries where we can leverage our deep knowledge of those markets. (1)(2)(4)(5)(9) Please refer to the Non-GAAP Financial Measures tables for additional information on these non-GAAP financial measures and reconciliation of these measures to GAAP measures.CONTACT: FGS Global [email protected]~PAGE-BREAK~Special Note about Forward Looking StatementsCertain statements in this press release, other than purely historical information, including estimates, projections, statements relating to the Company's business plans, objectives and expected operating results and the assumptions upon which those statements are based are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended.These forward-looking statements include general statements both with respect to the Company and the insurance industry and generally are identified with the words "anticipate", "believe", "expect", "predict", "estimate", "intend", "plan", "project", "seek", "potential", "possible", "could", "might", "may", "should", "will", "would", "will be", "will continue", "will likely result" and similar expressions.In light of the risks and uncertainties inherent in all forward-looking statements, the inclusion of such statements in this press release should not be considered as a representation by the Company or any other person that the Company's objectives or plans or other matters described in any forward-looking statement will be achieved.These statements are based on current plans, estimates, assumptions and expectations.Actual results may differ materially from those projected in such forward-looking statements and therefore, you should not place undue reliance on them.Important factors that could cause actual results to differ materially from those in such forward-looking statements are set forth in Item 1A "Risk Factors" in the Company's Annual Report on Form 10-K for the year ended December 31, 2023.COVID-19 triggered a period of increased volatility with respect to global economic conditions.During the year ended December 31, 2023, inflation became unusually high in many parts of the world, and central banks in the U.S. and other countries aggressively raised interest rates to counter inflation by slowing economic activity.Monetary policy tightening actions are ongoing at June 30, 2024, and their long-term impact on financial markets and the real economy is currently uncertain.Please also see additional risks described in "Part I, Item 1A, Risk Factors" of our Annual Report on Form 10-K for the year ended December 31, 2023.The Company cautions that the list of important risk factors in its Annual Report on Form 10-K for the year ended December 31, 2023 is not intended to be and is not exhaustive.The Company undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by law, and all subsequent written and oral forward-looking statements attributable to the Company or individuals acting on the Company's behalf are expressly qualified in their entirety by this paragraph.If one or more risks or uncertainties materialize, or if the Company's underlying assumptions prove to be incorrect, the Company's actual results may vary materially from what was projected.Any forward-looking statements in this press release reflect the Company's current view with respect to future events and are subject to these and other risks, uncertainties and assumptions relating to the Company's operations, results of operations, growth, strategy and liquidity.Readers are cautioned not to place undue reliance on the forward-looking statements which speak only as of the dates of the documents in which such statements were made.Any discrepancies between the amounts included in the results of operations discussion and the consolidated financial statement tables are due to rounding.~PAGE-BREAK~MAIDEN HOLDINGS, LTD.CONSOLIDATED BALANCE SHEETS(In thousands of U.S. dollars, except share and per share data)June 30,2024  December 31, 2023(Unaudited)  (Audited)ASSETSInvestments:Fixed maturities, available-for-sale, at fair value (amortized cost 2024 - $225,971; 2023 - $258,536)  $   219,541 $   250,601Equity securities, at fair value    44,388     45,299Equity method investments    83,794     80,929Other investments    208,595     182,811Total investments    556,318     559,640Cash and cash equivalents    24,807     35,412Restricted cash and cash equivalents    12,515     7,266Accrued investment income    3,741     4,532Reinsurance balances receivable, net     10,014     12,450Reinsurance recoverable on unpaid losses    570,036     564,331Loan to related party    167,975     167,975Deferred commission and other acquisition expenses, net    14,435     17,566Funds withheld receivable     32,592     143,985Other assets    7,517     5,777Total assets  $   1,399,950 $   1,518,934LIABILITIESReserve for loss and loss adjustment expenses  $   762,264 $   867,433Unearned premiums    38,377     46,260Deferred gain on retroactive reinsurance    80,506     73,240Accrued expenses and other liabilities    26,082     28,244Senior notes - principal amount    262,361     262,361Less: unamortized debt issuance costs    7,686     7,764Senior notes, net    254,675     254,597Total liabilities    1,161,904     1,269,774Commitments and Contingencies  EQUITYCommon shares    1,503     1,497Additional paid-in capital    886,972     886,072Accumulated other comprehensive loss    (32,485)   (31,469)Accumulated deficit    (495,457)   (486,945)Treasury shares, at cost    (122,487)   (119,995)Total Equity    238,046     249,160Total Liabilities and Equity  $   1,399,950 $   1,518,934Book value per common share  $   2.38 $   2.48Common shares outstanding    99,811,336   100,472,120~PAGE-BREAK~MAIDEN HOLDINGS, LTD.CONSOLIDATED STATEMENTS OF INCOME (Unaudited)(In thousands of U.S. dollars, except share and per share data)For the Three Months Ended June 30,  For the Six Months Ended June 30,2024  2023  2024  2023Revenues:Gross premiums written  $   8,449   $   6,875   $   16,772   $   7,711Net premiums written  $   8,339   $   6,875   $   16,653   $   7,635Change in unearned premiums    3,738     4,164     7,832     12,406Net premiums earned    12,077     11,039     24,485     20,041Other insurance revenue, net    -     78     46     19Net investment income    6,953     10,518     14,653     20,063Net realized and unrealized investment gains    1,457     1,145     10,207     2,150Total revenues    20,487     22,780     49,391     42,273Expenses:Net loss and loss adjustment expenses    13,971     11,532     25,596     21,347Commission and other acquisition expenses    4,813     4,945     10,406     9,180General and administrative expenses    7,879     6,839     15,939     16,947Total expenses    26,663     23,316     51,941     47,474Other expensesInterest and amortization expenses    4,816     4,773     9,631     8,597Foreign exchange and other (gains) losses    -     2,621     (2,053)     5,437Total other expenses     4,816     7,394     7,578     14,034Loss before income taxes    (10,992)     (7,930)     (10,128)     (19,235)Less: income tax expense (benefit)    442     (194)     453     (222)Interest in income of equity method investments    1,463     4,803     2,069     4,752Net loss  $   (9,971)   $   (2,933)   $   (8,512)   $   (14,261)Basic and diluted loss per share attributable to common shareholders  $   (0.10)   $   (0.03)   $   (0.08)   $   (0.14)Annualized retuon average common equity  (16.5) %  (4.4) %  (7.0) %  (10.4) %Weighted average number of common shares - basic and diluted  100,159,973   101,754,218   100,308,549   101,653,848~PAGE-BREAK~MAIDEN HOLDINGS, LTD.SUPPLEMENTAL FINANCIAL DATA - SEGMENT INFORMATION (Unaudited)(in thousands of U.S. dollars)For the Three Months Ended June 30, 2024  Diversified Reinsurance  AmTrust Reinsurance  TotalGross premiums written  $   8,493 $   (44) $   8,449Net premiums written  $   8,383 $   (44) $   8,339Net premiums earned  $   8,229 $   3,848 $   12,077Net loss and loss adjustment expenses ("loss and LAE")    (5,354)   (8,617)   (13,971)Commission and other acquisition expenses    (3,294)   (1,519)   (4,813)General and administrative expenses    (2,358)   (700)   (3,058)Underwriting loss   $   (2,777) $   (6,988)   (9,765)Reconciliation to net lossNet investment income and net realized and unrealized investment gains    8,410Interest and amortization expenses    (4,816)Other general and administrative expenses    (4,821)Income tax expense    (442)Interest in income of equity method investments    1,463Net loss  $   (9,971)For the Three Months Ended June 30, 2023  Diversified Reinsurance  AmTrust Reinsurance  TotalGross premiums written  $   6,652   $   223   $   6,875Net premiums written  $   6,652   $   223   $   6,875Net premiums earned  $   7,204   $   3,835   $   11,039Other insurance revenue    78     -     78Net loss and LAE    (3,828)     (7,704)     (11,532)Commission and other acquisition expenses    (3,514)     (1,431)     (4,945)General and administrative expenses    (3,058)     (844)     (3,902)Underwriting loss  $   (3,118)   $   (6,144)     (9,262)Reconciliation to net lossNet investment income and net realized and unrealized investment gains    11,663Interest and amortization expenses    (4,773)Foreign exchange and other losses, net    (2,621)Other general and administrative expenses    (2,937)Income tax benefit    194Interest in income of equity method investments    4,803Net loss  $   (2,933)~PAGE-BREAK~
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Maiden Holdings Ltd. published this content on 08 August 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 08 August 2024 20:03:39 UTC.