Company: MHLA
Filing Date: 2025-03-10
Form Type: 10-K
Source: 0001412100-25-000011
Chunk: 113

Company: Maiden Holdings, Ltd.
Filing Date: 2025-03-10
Form: 10-K
Item: Item 7
Chunk 113
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" for further information on this transaction. We believe the proposed combination with Kestrel represents a transformative milestone for Maiden, and believe that Kestrel’s balance sheet light, fee revenue model will enable us to realize our vision of delivering a strong fee-based insurance platform while selectively deploying underwriting capacity to optimize returns for shareholders. 

In light of the revisions to our strategy, during the third quarter of 2024 we took steps to begin to reduce the asset management pillar of our strategy which are discussed below. Our alternative investments portfolio decreased by 18.6% during the year ended December 31, 2024 due to recent sales and redemptions of private equity and private credit funds, and this portfolio may be reduced further in future periods as we continue to refine our strategy. The sales we executed during 2024 resulted in a lower positive net return of 3.5% during 2024 compared to 8.0% in 2023. While we remain confident that our asset management strategy will achieve the returns we have set out to achieve, we currently believe it is more critical to reposition our balance sheet and increase our liquidity in support of the current initiatives being pursued. 

While we have revised our strategy and believe that our proposed combination with Kestrel will increase the likelihood of achieving our stated objectives, there can be no assurance that our insurance liabilities will run-off at levels that will permit further capital management activities, which we continually review as part of our strategy.  

As a result, we continue to pursue finality solutions to resolve the AmTrust liabilities not covered by the LPT/ADC Agreement, including through third-parties. There can be no guarantee that we will execute such finality solutions and these solutions could involve significant charges to execute and we are actively evaluating the potential costs and benefits of such solutions, to the extent they are available to the Company.  

2024 Developments 

The run-off of our historic reinsurance programs produced an underwriting loss of $197.4 million in 2024. This was driven by adverse prior year reserve development of $154.4 million which offset the positive progress made in our capital and asset management strategies. As a result, during 2024, our book value decreased by 81.5% to $0.46 per common share at December 31, 2024, and our non-GAAP  book value decreased by 52.4% to $1.52 per common share at December 31, 2024. We continued to execute