Company: MHLA
Filing Date: 2025-03-10
Form Type: 10-K
Source: 0001412100-25-000011
Chunk: 148

Company: Maiden Holdings, Ltd.
Filing Date: 2025-03-10
Form: 10-K
Item: Item 7
Chunk 148
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. The Company's ongoing analysis of this emergence, including additional claims diligence and consultation with subject matter experts concluded that ultimate development patterns may be significantly longer than previously estimated and the Company has considered this in its determination of ultimate loss.

This was partly offset by continued favorable development within Workers Compensation business for accident years 2014 to 2018, as well as favorable development within Commercial Auto Liability during the year ended December 31, 2024.

Net adverse prior year reserve development of $24.1 million in the year ended December 31, 2023 for the AmTrust Quota Share was primarily due to reserve strengthening in General Liability and Commercial Auto Liability partly offset by continued favorable development in Workers Compensation due to better than expected loss emergence. 

Net adverse PPD for the AmTrust Quota Share of $105.0 million for the year ended December 31, 2024 includes $64.3 million recoverable under the LPT/ADC Agreement to be recognized as future GAAP income over time as recoveries are received subject to the provisions of the LPT/ADC Agreement and the applicable GAAP accounting rules. Net adverse PPD for the AmTrust Quota Share of $24.1 million for the year ended December 31, 2023 includes $29.3 million recoverable under the LPT/ADC Agreement to be recognized as future GAAP income over time as recoveries are received subject to the provisions of the LPT/ADC Agreement and the applicable GAAP accounting rules. During the fourth quarter of 2024, recoveries from the LPT/ADC Agreement commenced and are recognized as GAAP income pursuant to the applicable GAAP accounting rules. Amortization of the deferred gain was $4.1 million for the year ended December 31, 2024 since cumulative paid losses have now exceeded the retention under the LPT/ADC Agreement. Please refer to Other Balance Sheet Changes in "Liquidity & Capital Resources" for a table that details the change in the deferred gain on reinsurance recoverable under the LPT/ADC Agreement for the years ended December 31, 2024 and 2023.

As of December 31, 2024, the reinsurance recoverable on unpaid losses under the LPT/ADC Agreement was $532.9 million (2023 - $515.5 million). The LPT/ADC Agreement provides Maiden Reinsurance with $155.0 million in adverse PPD cover over its carried AmTrust Quota Share loss reserves at December 31,