Company: MHLA
Filing Date: 2025-05-12
Form Type: 10-Q
Source: 0001412100-25-000043
Chunk: 37

Company: Maiden Holdings, Ltd.
Filing Date: 2025-05-12
Form: 10-Q
Item: Item 1
Chunk 37
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600,000, in exchange for a retrocession premium of $445,000. The $2,178,535 retention is subject to adjustment for paid losses subsequent to December 31, 2018. The LPT/ADC Agreement provides Maiden Reinsurance with $155,000 in adverse development cover over its carried AmTrust Quota Share loss reserves at December 31, 2018. The LPT/ADC Agreement meets the criteria for risk transfer and is thus accounted for as retroactive reinsurance. Cumulative ceded losses exceeding $445,000 are recognized as a deferred gain liability and amortized into income over the settlement period of the ceded reserves in proportion to cumulative losses collected over the estimated ultimate reinsurance recoverable. The amount of the deferral is recalculated each period based on loss payments and updated estimates. 

 27

MAIDEN HOLDINGS, LTD. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)(in thousands of U.S. dollars, except share and per share data)

8. Reinsurance (continued)As of March 31, 2025, the reinsurance recoverable on unpaid losses under the LPT/ADC Agreement was $509,938 while the deferred gain liability under the LPT/ADC Agreement was $103,968 (December 31, 2024: $532,910 and $104,955, respectively). The recoverable due under the LPT/ADC Agreement is net of an allowance for expected credit losses of $30 as at March 31, 2025 (December 31, 2024: $319). Amortization of the deferred gain was $5,888 for the three months ended March 31, 2025 since cumulative paid losses exceed the minimum risk retention under the LPT/ADC Agreement (year ended December 31, 2024: $4,099). At March 31, 2025, $41,045 was remaining in available coverage under the LPT/ADC Agreement (December 31, 2024: $45,946).During the three months ended March 31, 2025, the Company received $28,162 in loss recoveries from Cavello under the LPT/ADC Agreement (year ended December 31, 2024: $20,825). The favorable loss development on Workers Compensation business previously commuted back to AmTrust which are contractually covered by the LPT/ADC Agreement reduced the reinsurance recoverable