Company: MHLA
Filing Date: 2025-03-10
Form Type: 10-K
Source: 0001412100-25-000011
Chunk: 149

Company: Maiden Holdings, Ltd.
Filing Date: 2025-03-10
Form: 10-K
Item: Item 7
Chunk 149
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 2018. The reinsurance recoverable includes the deferred gain liability under the LPT/ADC Agreement of $105.0 million (2023 - $70.9 million). At December 31, 2024, there was $45.9 million remaining in available coverage under the LPT/ADC Agreement (2023 - $84.1 million). 

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Please see Note 8 — Reinsurance included under Part II Item 8 "Financial Statements and Supplementary Data" of this Annual Report on Form 10-K for further information on the reinsurance recoverable related to the LPT/ADC Agreement.

European Hospital Liability Quota Share

Net adverse loss development on European Hospital Liability Quota Share was primarily driven by emergence of loss data from adverse claim verdicts on older claims prior to 2014, resulting in strengthening of loss development tail on underwriting years 2011 to 2014. For the European Hospital Liability Quota Share, certain tables used in determining non-economic damages were updated in the year ended December 31, 2024 by the applicable authorities in Italy and increased compensation values for subject claims. The Company analyzed the potential impact of the changes to these tables on its estimate of ultimate loss for the Hospital Liability contract, including consultation with specialist third-party subject matter experts. In combination with the continued emergence of loss data from adverse claims verdicts noted above, these revisions significantly impacted the Company's evaluation of ultimate loss on these claims resulting in adverse development of $47.0 million incurred for the year ended December 31, 2024.

Net adverse development for European Hospital Liability of $10.3 million for the year ended December 31, 2023 was driven by emergence of loss data during 2023 on underwriting years 2011 to 2016. To the extent recent adverse loss development in European Hospital Liability continues, the European Hospital Liability Quota Share may have a more significant negative impact on our underwriting results than the AmTrust Quota Share, particularly as the deferred gain recognized under the LPT/ADC Agreement is amortized into GAAP income.

Commission and Other Acquisition Expenses - Commission and other acquisition expenses increased by $3.5 million for the year ended December 31, 2024 compared to 2023. Total acquisition costs increased as a percentage of net premiums earned in 2024 due to the accelerated amortization of deferred acquisition costs upon the recognition of a premium deficiency of $3.3 million in the AmTrust Reinsurance segment for the year ended