Company: MHLA
Filing Date: 2025-03-10
Form Type: 10-K
Source: 0001412100-25-000011
Chunk: 140

Company: Maiden Holdings, Ltd.
Filing Date: 2025-03-10
Form: 10-K
Item: Item 7
Chunk 140
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2024 compared to net adverse PPD of $38.2 million during 2023.  Please refer to the individual analysis of our Diversified Reinsurance and AmTrust Reinsurance segments for further details on PPD by lines of business.

The adverse PPD experienced in the AmTrust Reinsurance segment caused a net increase in reinsurance recoverable on unpaid losses under the LPT/ADC Agreement with Cavello of $34.0 million for the year ended December 31, 2024 due to adverse development on loss reserves covered under the LPT/ADC Agreement. The deferred gain on retroactive reinsurance under the LPT/ADC Agreement represents the cumulative adverse development for covered risks in the AmTrust Quota Share as of December 31, 2024. The increase in reinsurance recoverable is net of the amortization of the deferred gain of $4.1 million for the year ended December 31, 2024 which was recognized now that cumulative paid losses have exceeded the minimum retention under the LPT/ADC Agreement starting in the fourth quarter of 2024.

The cessation of active reinsurance underwriting on prospective risks included the termination of the AmTrust Quota Share and European Hospital Liability Quota Share effective January 1, 2019. The segment net loss development is discussed in greater detail in the individual segment discussion and analysis and is primarily associated with the run-off of terminated reinsurance contracts in the AmTrust Reinsurance and Diversified Reinsurance segments. 

Commission and Other Acquisition Expenses 

Commission and other acquisition expenses increased by $4.8 million or 24.9% for the year ended December 31, 2024 compared to 2023.  This was partly due to lower earned premium adjustments in the AmTrust Reinsurance segment as negative premium adjustments in the first quarter of 2023 resulted in lower commission costs and brokerage fees.

Total acquisition expenses increased as a percentage of net premiums earned for the year ended December 31, 2024 driven by the accelerated amortization of deferred acquisition costs upon the recognition of a premium deficiency of $3.3 million in the AmTrust Reinsurance segment. Please see further discussion in the individual segment analysis below. 

General and Administrative Expenses 

General and administrative expenses include both segment and corporate expenses segregated for analytical purposes as a component of underwriting income. Total general and administrative expenses increased by $4.6 million or 14.8% for the year ended December 31, 2024, compared to 2023.