Company: MHLA
Filing Date: 2025-03-10
Form Type: 10-K
Source: 0001412100-25-000011
Chunk: 142

Company: Maiden Holdings, Ltd.
Filing Date: 2025-03-10
Form: 10-K
Item: Item 7
Chunk 142
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 Company realized a gain of $39.9 thousand due to the partial repurchase of the 2013 Senior Notes which was offset against total interest and amortization expenses. Net interest and amortization expenses for the Senior Notes were $18.2 million for year ended December 31, 2023.

Please refer to "Notes to Consolidated Financial Statements - Note 7 — Long-Term Debt" included under Item 8 "Financial Statements and Supplementary Data" of this Form 10-K for further details on the Senior Notes. The weighted average effective interest rate for the Senior Notes was 7.6% for the years ended December 31, 2024 and 2023, respectively.

Foreign Exchange and Other Gains (Losses)

Net foreign exchange and other gains amounted to $7.0 million during the year ended December 31, 2024 compared to net foreign exchange and other losses of $5.7 million in 2023. Net foreign exchange gains of $6.8 million for the year ended December 31, 2024 were attributable to the strengthening of the U.S. dollar on the re-measurement of net loss reserves and insurance related liabilities denominated in British pound and euro. Net foreign exchange losses of $5.7 million during 2023 were attributable to the weakening of the U.S. dollar on the re-measurement of net loss reserves and insurance related liabilities denominated in British pound and euro. 

Foreign currency fluctuations are primarily driven by exposures to euro, British pound and other non-USD denominated net loss reserves and insurance related liabilities in excess of foreign currency assets. Our non-USD denominated liabilities at December 31, 2024 included net loss reserves of $355.9 million. Our foreign currency asset exposures at December 31, 2024 included $123.2 million of fixed maturity securities managed by our investment managers who have the discretion to hold foreign currency exposures as part of their total return strategy, $30.0 million of equity method real estate investments denominated in Canadian dollars, as well as $12.7 million of funds withheld receivable. 

Income Tax Expense

The Company recognized an income tax expense of $1.1 million for the year ended December 31, 2024 compared to an income tax expense of $0.2 million recognized for 2023. The income tax expense for 2024 and 2023 was largely generated on the operating results of our international subsidiaries. The effective rate of income tax was (0