Company: MHLA
Filing Date: 2025-05-12
Form Type: 10-Q
Source: 0001412100-25-000043
Chunk: 183

Company: Maiden Holdings, Ltd.
Filing Date: 2025-05-12
Form: 10-Q
Item: Item 8
Chunk 183
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 Loan Agreement dated December 31, 2024 with respect to the settlement of certain ceded premium balances of $24,259 entered into between AII and Maiden Reinsurance.•Commencing on January 1, 2025, the outstanding balances under the AR Loan Agreement and Premium Repayment Loan Agreement are presented on the Company's balance sheet on a net basis. The outstanding net loan receivable was  $128,118 at March 31, 2025 (December 31, 2024: $167,975). There was no allowance for expected credit losses recognized on the loan at March 31, 2025 and December 31, 2024. Interest is payable at a rate equivalent to the Federal Funds Effective Rate ("Fed Funds") plus 150 basis points per annum (December 31, 2024 - 200 basis points per annum on the original loan prior to the AR Loan agreement). •Net interest income on the net loan receivable was $598 in the three months ended March 31, 2025 (2024: $3,070 earned on the original Loan Agreement) with an effective yield of 1.9%  (2024: 7.3% on the original Loan Agreement). Net interest income earned on the net loan receivable for the three months ended March 31, 2025 was offset by a non-recurring adjustment of $1,240 due to contractual reductions regarding the timing of paid loss settlements in 2024. The Company expects net interest income to be lower going forward as interest income on the AR Loan Agreement is now offset by interest payable on the Premium Repayment Loan Agreement from January 1, 2025.b) European Hospital Liability Quota ShareCollateral has been provided to both AEL and AIU DAC under the European Hospital Liability Quota Share. For AEL, the amount of the collateral held in reinsurance trust accounts at March 31, 2025 was $130,845 (December 31, 2024: $123,681) and the accrued interest was $593 (December 31, 2024: $1,008).Asset Management AgreementEffective July 1, 2007, the Company entered into an asset management agreement with AII Insurance Management Limited ("AIIM"), a wholly owned subsidiary of AmTrust, pursuant to which AIIM agreed to provide investment management services to the Company. Effective January 1, 2018, AIIM provides investment management services for a quarterly fee of