Company: MHLA
Filing Date: 2025-03-10
Form Type: 10-K
Source: 0001412100-25-000011
Chunk: 186

Company: Maiden Holdings, Ltd.
Filing Date: 2025-03-10
Form: 10-K
Item: Item 7
Chunk 186
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 Share, which is not covered by the LPT/ADC Agreement;

•favorable loss development on Workers Compensation losses previously commuted back to AmTrust which are contractually covered by the LPT/ADC Agreement reduced the deferred gain liability on retroactive reinsurance by $26.2 million for the year ended December 31, 2024; and

•underwriting loss of $11.4 million in the Diversified Reinsurance segment, which included an underwriting loss of $8.5 million from GLS operations during the year ended December 31, 2024.

Please refer to the respective segment results for AmTrust Reinsurance and Diversified Reinsurance as discussed under Item 7. "Management's Discussion and Analysis of Financial Condition and Results of Operations" of this Annual Report on Form 10-K for further details of these underwriting results.

Non-GAAP Net Loss and LAE

Adjusted for prior year reserve development under the AmTrust Quota Share which is fully recoverable from Cavello under the LPT/ADC Agreement, the non-GAAP net loss and LAE decreased by $34.0 million for the year ended December 31, 2024. The favorable development on Workers Compensation losses previously commuted back to AmTrust which are contractually covered by the LPT/ADC Agreement reduced the reinsurance recoverable by $26.2 million for the year ended December 31, 2024. 

Adjusted for prior year reserve development under the AmTrust Quota Share which is fully recoverable from Cavello under the LPT/ADC Agreement, the non-GAAP net loss and LAE decreased by $25.5 million for the year ended December 31, 2023. The reinsurance recoverable under the LPT/ADC Agreement was reduced by $3.8 million of favorable development on certain Workers Compensation losses that were previously commuted back to AmTrust in 2019 that inure to the benefit of Cavello as opposed to the Company under the terms of the LPT/ADC Agreement. These adjustments are reflected in the calculation of non-GAAP Loss and LAE in the table below: 

For the Year Ended December 31,20242023($ in thousands)Net loss and LAE$186,127 $61,228 Less: adverse  prior year loss development covered under the LPT/ADC Agreement34,039 25,508 Non-GAAP net loss and LAE$152,088 $35,720