Company: MHLA
Filing Date: 2025-03-10
Form Type: 10-K
Source: 0001412100-25-000011
Chunk: 185

Company: Maiden Holdings, Ltd.
Filing Date: 2025-03-10
Form: 10-K
Item: Item 7
Chunk 185
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PT/ADC Agreement. Please see the "Key Financial Measures" section for the definitions of non-GAAP underwriting loss and non-GAAP net loss and LAE.

88

The non-GAAP underwriting results above are summarized by segment for the years ended December 31, 2024 and 2023 in the table below:

For the Year Ended December 31,20242023($ in thousands)Diversified Reinsurance underwriting loss$(11,438)$(9,141)AmTrust Reinsurance underwriting loss (185,933)(40,341)Plus: adverse prior year loss development covered under the LPT/ADC Agreement34,039 25,508 Non-GAAP AmTrust Reinsurance underwriting loss(151,894)(14,833)Non-GAAP underwriting loss$(163,332)$(23,974)

The non-GAAP underwriting results have been adjusted for prior year reserve development under the AmTrust Quota Share which is fully recoverable from Cavello under the LPT/ADC Agreement to show the ultimate economic benefit to the Company. As shown in the table above, adjusted for the increase in reinsurance recoverable under the LPT/ADC Agreement of $34.0 million during the year ended December 31, 2024, the non-GAAP underwriting loss was $163.3 million. This compared to a non-GAAP underwriting loss of $24.0 million during the year ended December 31, 2023 when adjusted for the increase in the reinsurance recoverable under the LPT/ADC Agreement of $25.5 million for the year ended December 31, 2023. 

The non-GAAP underwriting loss of $163.3 million for the year ended December 31, 2024 was primarily driven by:

•adverse loss development of $40.6 million in the AmTrust Reinsurance segment not covered by the LPT/ADC Agreement, specifically the run-off of the AmTrust Quota Share with losses occurring after December 31, 2018;

•$24.3 million in incurred charges in the fourth quarter of 2024 which represents the settlement of a dispute over cessions of ceded uncollected premium made by AII to Maiden Reinsurance, the principal amount of which will be payable by Maiden Reinsurance in quarterly installments through the maturity date of December 31, 2032;

•adverse loss development of $47.0 million in the European Hospital Liability Quota