Company: MHLA
Filing Date: 2025-05-12
Form Type: 10-Q
Source: 0001412100-25-000043
Chunk: 30

Company: Maiden Holdings, Ltd.
Filing Date: 2025-05-12
Form: 10-Q
Item: Item 1
Chunk 30
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 in a significantly higher or lower valuation at the reporting date. The fair value of underwriting-related derivative instruments is determined using a discounted cash flow model in which the Company examines current market conditions, historical results as well as contract specific information that may impact future cash flows in order to assess the reasonableness of inputs used in the valuation model. Due to significant unobservable inputs in these valuations, the Company classifies the fair values as Level 3 within the fair value hierarchy. The following table provides a summary of quantitative information regarding the significant unobservable inputs used in determining the fair value of other investments measured at fair value on a recurring basis under the Level 3 classification at March 31, 2025: Fair ValueValuation TechniqueUnobservable InputsRangePrivately held equity investments - common shares$44,020 Quarterly financial statementsPrice/book ratios of comparable public companies   Privately held equity investments - preferred shares5,120 Quarterly financial statementsPrivately calculated enterprise valuationsTotal Level 3 investments$49,140  Underwriting-related derivative liability$3,984 Discounted cash flowsDuration matched discount rates5.0%to6.0%The following table shows the reconciliation of beginning and ending balances for investments measured at fair value on a recurring basis using Level 3 inputs for the three months ended March 31, 2025 and 2024, respectively. The Company includes any related interest and dividend income in net investment income and are excluded from the reconciliation in the table below:For the Three Months Ended March 31, 20252024Balance - beginning of period$48,001 $46,656 Net realized and unrealized gains recognized in the statement of income1,139 5,511 Total Level 3 investments - end of period$49,140 $52,167 (d) Financial Instruments Disclosed, But Not Carried, at Fair ValueThe fair value of financial instruments accounting guidance also applies to financial instruments disclosed, but not carried, at fair value, except for certain financial instruments related to insurance contracts. At March 31, 2025, the carrying values of cash equivalents (including restricted amounts), accrued investment income, reinsurance balances receivable and certain other assets and liabilities approximate fair values due to their inherent short duration. As these financial instruments are not actively traded, the fair values of these financial instruments are classified as Level 2 in the fair value hierarchy.At March 31, 2025, the carrying value of the loan to related