Company: MHLA
Filing Date: 2025-03-10
Form Type: 10-K
Source: 0001412100-25-000011
Chunk: 187

Company: Maiden Holdings, Ltd.
Filing Date: 2025-03-10
Form: 10-K
Item: Item 7
Chunk 187
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Adjusted Shareholders' Equity, Adjusted Total Capital Resources, Adjusted Book Value per Common Share and Ratio of Debt to Total Adjusted Capital Resources 

The Adjusted Shareholders' Equity, Adjusted Total Capital Resources and Adjusted Book Value per Common Share at December 31, 2024 and 2023 reflect the addition of the unamortized deferred gain under the LPT/ADC Agreement to the 

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GAAP shareholders' equity as depicted in the computations below. The unamortized deferred gain under the LPT/ADC Agreement was $105.0 million at December 31, 2024 compared to $70.9 million at December 31, 2023; this increase attributable to $34.0 million in net loss and LAE recognized as adverse loss reserve development in the Company's GAAP income statement for AmTrust Quota Shares policies covered by the LPT/ADC Agreement. 

Net adverse development of $105.0 million was reported for policies under the AmTrust Quota Share for the year ended December 31, 2024. These losses are recoverable under the LPT/ADC Agreement and will be recognized as future GAAP income over time as recoveries are received subject to the provisions of both the LPT/ADC Agreement and the applicable GAAP accounting rules. We believe the inclusion of this unamortized deferred gain under these metrics better reflects the ultimate economic benefit of the LPT/ADC Agreement, which will improve the Company's shareholders' equity over the settlement period under the terms of the agreement.

Reconciliation of  shareholders' equity to Adjusted shareholders' equity and Adjusted Total Capital Resources

The following table computes adjusted shareholders' equity and adjusted total capital resources by recognizing the unamortized deferred gain under the LPT/ADC Agreement at December 31, 2024 and 2023:

December 31,20242023ChangeChange ($ in thousands) $%Total shareholders' equity$45,193 $249,160 $(203,967)(81.9)%Unamortized deferred gain on LPT/ADC Agreement104,955 70,916 34,039 48.0 %Adjusted shareholders' equity150,148 320,076 (169,928)(53.1)%Senior Notes - principal amount262,361 262,361 — — %Adjusted total capital resources$412,509 $582,437 $(169,928)(29.2)%