Company: MHLA
Filing Date: 2025-03-26
Form Type: DEFM14A
Source: 0001104659-25-028254
Chunk: 232

Company: Maiden Holdings, Ltd.
Filing Date: 2025-03-26
Form: DEFM14A
Chunk 232
---
 Qualitative Disclosures about Market Risk

Market risk is the risk of loss to future earnings, values or cash flows that may result from changes in the price of a financial instrument. The value of a financial instrument, derivative or non-derivative, might change as a result of changes in interest rates, exchange rates, commodity prices, equity prices and other market changes. Kestrel has operations within the United States and is exposed to market risks in the ordinary course of its business. These risks include liquidity risk, credit risk, interest rate risk and inflation.

### Liquidity risk
Liquidity risk represents the potential inability to meet all payment obligations when they become due. Kestrel seeks to maintain sufficient cash and cash equivalents to fund its operations.

#### Credit risk
Although the AmTrust Insurance Companies are directly exposed to the risk of insolvency or other failure to pay by a reinsurer, any adverse impact to the business, financial condition, results of operations, and prospects of the AmTrust Insurance Companies may have an adverse impact on Kestrel’s financial condition and results of operations, as Kestrel relies on the AmTrust Insurance Companies to write its business. Therefore, Kestrel is indirectly exposed to credit risk from potential losses arising principally from the financial condition of the third-party reinsurers, and Kestrel is also directly exposed to credit risk from potential losses in its cash and money market accounts. Although the third-party reinsurers are obligated to reimburse losses to the extent risk is ceded to them, insurance carriers are ultimately liable to the policyholders on all risks ceded. As a result, reinsurance contracts do not limit the ultimate obligations to pay claims covered under the insurance policies that Kestrel issues through the insurance carriers, and Kestrel might not collect amounts recoverable from the reinsurers.

Kestrel also evaluates the credit risk of its investment portfolio. As of December 31, 2024, Kestrel’s cash and cash equivalents are held in FDIC-insured banks and in money market accounts with daily liquidity.

<div align='center'>146</div>

TABLE OF CONTENTS

### DESCRIPTION OF BERMUDA NEWCO COMMON SHARES
The following is a summary of the Bermuda NewCo common shares as of the closing and does not purport to be a complete description of the Bermuda NewCo common shares. You should also refer to, and this summary is qualified in its entirety by, (1) Bermuda NewCo’s memorandum of association and any (i) certificates of deposit of memorandum of increase of