Company: MHLA
Filing Date: 2025-03-10
Form Type: 10-K
Source: 0001412100-25-000011
Chunk: 5

Company: Maiden Holdings, Ltd.
Filing Date: 2025-03-10
Form: 10-K
Item: Item 1
Chunk 5
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 two of whom will be independent under applicable securities laws and stock exchange rules.

The transaction is subject to certain closing conditions, including the approval of Maiden’s shareholders, the approval of listing of the shares of the combined company on the Nasdaq (subject to official notice of issuance) and the receipt of certain other regulatory approvals. Closing is expected to occur in the first half of 2025. 

The foregoing description of the Combination Agreement and the transaction does not purport to be complete and is subject to and qualified in its entirety by reference to the Combination Agreement, a copy of which is included as Exhibit 2.1 to this Form 10-K. In addition, see “Risk Factors — The Transaction.”

Business Strategy

In addition to restoring operating profitability, our strategic focus centers on creating the greatest risk-adjusted shareholder returns in order to increase book value for our common shareholders, both near and long-term. In that respect, management’s focus is to increase non-GAAP book value, which fully reflects the steps we have taken to protect our balance sheet, primarily through our LPT/ADC Agreement with Cavello, as this represents the ultimate economic value of Maiden. 

In recent years we had pursued a revised operating strategy which leveraged the significant assets and capital we retain. However, during 2024 we made significant revisions to that strategy which resulted in our announcement of the Combination Agreement with Kestrel. Further details are discussed in the "Business Strategy" section of Item 7. "Management’s Discussion and Analysis of Financial Condition and Results of Operations - Overview" of this Annual Report on Form 10–K.

2024 Financial Developments

Our non-GAAP book value decreased by 52.4% during 2024 to $1.52 per common share at December 31, 2024 due to continuing significant adverse loss development while GAAP book value decreased by 81.5% to $0.46 per common share at December 31, 2024.  

Our alternative investment portfolio decreased by 18.6% during 2024 primarily due to sales and redemptions of equity securities, private equity investments and private credit funds. These sales were part of a broader effort to reposition our balance 

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sheet as part of ongoing revisions to our strategy we actively pursued in 2024 while also strengthening overall liquidity.  Our alternative investment portfolio (including sales of alternative investments related to our shift in strategy) produced a positive net return of 3.5% during 2024 compared to