Company: MHLA
Filing Date: 2025-05-12
Form Type: 10-Q
Source: 0001412100-25-000043
Chunk: 324

Company: Maiden Holdings, Ltd.
Filing Date: 2025-05-12
Form: 10-Q
Item: Item 2
Chunk 324
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AAP underwriting loss and net loss and LAE.

 71

The non-GAAP underwriting results above are summarized by segment for the three months ended March 31, 2025 and 2024 in the table below:

For the Three Months Ended March 31,($ in thousands)20252024Diversified Reinsurance underwriting income (loss)$2,254 $(272)AmTrust Reinsurance underwriting income (loss)5,200 (7,252)Less: change in deferred gain on retroactive reinsurance under the LPT/ADC Agreement(987)5,000 Non-GAAP AmTrust Reinsurance underwriting income (loss)4,213 (2,252)Non-GAAP underwriting income (loss)(1)$6,467 $(2,524)

(1) Non-GAAP underwriting loss and non-GAAP net loss and LAE for the three months ended March 31, 2025 and 2024 are adjusted for prior year reserve development subject to the LPT/ADC Agreement.

The non-GAAP underwriting results have been adjusted for prior year loss reserve development under the AmTrust Quota Share which is fully recoverable from Cavello under the LPT/ADC Agreement to show the ultimate economic benefit to the Company. As shown in the table above, adjusted for the decrease in reinsurance recoverable under the LPT/ADC Agreement of $1.0 million during the three months ended March 31, 2025, the non-GAAP underwriting income was $6.5 million. This compared to a non-GAAP underwriting loss of $2.5 million when adjusted for the increase in reinsurance recoverable under the LPT/ADC Agreement of $5.0 million in the three months ended March 31, 2024.

The non-GAAP underwriting income of $6.5 million for the three months ended March 31, 2025, was primarily driven by:

•net favorable prior year reserve development in the AmTrust Reinsurance segment not covered by the LPT/ADC Agreement, specifically the run-off of the AmTrust Quota Share with losses occurring after December 31, 2018; and

•underwriting income of $2.3 million in the Diversified Reinsurance segment for the three months ended March 31, 2025. This included underwriting income of $1.2 million from GLS operations primarily due to a $2.5 million reduction in incurred