Company: MHLA
Filing Date: 2025-03-26
Form Type: DEFM14A
Source: 0001104659-25-028254
Chunk: 96

Company: Maiden Holdings, Ltd.
Filing Date: 2025-03-26
Form: DEFM14A
Chunk 96
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 | ​ | ​ | ​ | ​ |     -883 | ​ | ​ |
| ​ | Net assets                                          | ​ | ​ | ​ | ​ |  228,963 | ​ | ​ |
| ​ | Bargain purchase gain                               | ​ | ​ | ​ | ​ | -153,910 | ​ | ​ |
| ​ | Total consideration effectively transferred         | ​ | ​ | ​ | $ |   75,053 | ​ | ​ |

(1) Includes the net fair value adjustment of $6.8 million to net loss and loss adjustment expenses as of closing, which was made up of a $79.8 million decrease to the reinsurance recoverable on unpaid losses and an $86.6 million decrease to the reserve for loss and loss adjustment expenses. 5. Adjustments to Unaudited Pro Forma Condensed Consolidated Combined Balance Sheet The pro forma adjustments, based on preliminary estimates that could change materially as additional information is obtained, are as follows: Pro forma notes (A) Derived from the audited consolidated balance sheet of Kestrel as of December 31, 2024. (B) Derived from the audited consolidated balance sheet of Maiden as of December 31, 2024. (C) The historical audited consolidated financial statements of Maiden are inclusive of Maiden GF and

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Maiden LF. The discontinued operations adjustments are presented to exclude Maiden GF and Maiden LF’s results of operations. Pro forma Transaction Accounting Adjustments (a) Reflects the pro forma adjustment of $6.8 million to historical amounts to record the estimated fair value of reserve for loss and loss adjustment expenses, which reflects a decrease related to the present value of the net loss and loss adjustment expenses based on the estimated payout pattern, partially offset by an increase in net loss and loss adjustment expenses to the estimated market-based risk margin. The risk margin represents the estimated cost of capital required by a market participant to assume the net loss and loss adjustment expenses. The fair value of the net reserve for loss and loss adjustment expenses was determined using certain key assumptions, including the estimated cost of capital and investment yield. This will be amortized based on the claims settlement and reinsurance recovery timing. (b) Reflects the pro forma adjustment to record the value of acquired business (“VOBA”) at the estimated fair value of $5.9 million, which represents the present value of the expected underwriting profit within the unearned premiums liability, net of reinsurance, less costs