Company: MHLA
Filing Date: 2025-03-10
Form Type: 10-K
Source: 0001412100-25-000011
Chunk: 172

Company: Maiden Holdings, Ltd.
Filing Date: 2025-03-10
Form: 10-K
Item: Item 7
Chunk 172
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606$787,889Gross Investment Returns5.1 %4.8 %Investment expenses$166 $324 Net investment returns$26,788 $37,667 Net Investment Returns5.1 %4.8 %

Our net investment returns increased to 5.1% for the year ended December 31, 2024 compared to 4.8% in 2023. This was largely due to floating rate investments that comprised 51.1% of our fixed income investments at December 31, 2024 which enabled the portfolio to respond to the higher interest rate environment more quickly. The loan to related party carried a higher weighted average interest rate on a balance of $168.0 million which increased to 7.1% during the year ended December 31, 2024 compared to 7.0% during 2023. 

This was partly offset by lower interest income on the funds withheld receivable which decreased by $8.9 million in 2024 compared to 2023, as a result of a much lower average ending funds withheld balance with AmTrust of $19.7 million during the year ended December 31, 2024 compared to an average ending balance of $279.4 million for 2023. This was driven by using the funds withheld receivable for claim payments to AmTrust as the runoff of existing loss reserves continues in the terminated AmTrust Quota Share agreement, with the balance of funds withheld now fully exhausted at December 31, 2024. 

Please refer to "Notes to Consolidated Financial Statements - Note 4 — Investments" included under Item 8 "Financial Statements and Supplementary Data" of this Annual Report on Form 10-K for further detail on investment returns from fixed income investments held by the Company at December 31, 2024 and 2023. The following table details total investment returns for our alternative investments for the years ended December 31, 2024 and 2023, respectively:

Alternative Investments(2)For the Year Ended December 31,($ in thousands)20242023Gross investment income$5,672 $12,803 Net realized gains5,815 4,957 Net unrealized gains525 5,862 Gross investment returns$12,012 $23,622    Average invested assets, at fair value (4)$280,245$290,786Gross Investment Returns4.3 %8