Company: MHLA
Filing Date: 2025-03-10
Form Type: 10-K
Source: 0001412100-25-000011
Chunk: 6

Company: Maiden Holdings, Ltd.
Filing Date: 2025-03-10
Form: 10-K
Item: Item 1
Chunk 6
---
8.0% in 2023. We believe our alternative investment portfolio remains well positioned to achieve its targeted longer-term returns. 

The run-off of our historic reinsurance programs produced an underwriting loss of $197.4 million during 2024, driven by adverse prior year reserve development of $154.4 million, substantially all of which emanated from the AmTrust Reinsurance segment, which offset the positive progress made in our capital and asset management strategies.  Of this adverse prior year development, $64.3 million or 41.7% of total adverse development for the year ended December 31, 2024 is recoverable under the LPT/ADC Agreement and is expected to be recognized as future GAAP income over time as recoveries are received, under the provisions of the LPT/ADC Agreement and the applicable GAAP accounting rules.

We also remained active in the capital management pillar of our business strategy, repurchasing 1,871,755 common shares during 2024. As of December 31, 2024, Maiden Reinsurance owns 31.1% of the Company's total outstanding common shares which is eliminated for accounting and financial reporting purposes on our consolidated financial statements. The voting power of Maiden Reinsurance, with respect to its investment in Maiden Holdings common shares, is capped at 9.5% pursuant to the bye-laws of the Company. The ownership of the common shares by Maiden Reinsurance was made in compliance with Maiden Reinsurance's investment policy as approved by the Vermont DFR. In connection with the pending transaction with Kestrel, the Company has suspended its share repurchase program.

Details of our recent capital transactions are discussed in our Notes to the Consolidated Financial Statements in "Note 6 — Shareholders' Equity" included under Item 8 "Financial Statements and Supplementary Data" of this Annual Report on Form 10–K. Our future results, and our ability to generate an improved risk-adjusted return on capital, may be impacted by risks and trends set forth in Item 1A, "Risk Factors", and elsewhere in this Annual Report on Form 10-K. 

Our Principal Operating Subsidiaries

 Maiden Reinsurance, a wholly owned subsidiary of Maiden Holdings, is an affiliated reinsurance company licensed in the State of Vermont in the U.S. and our principal operating subsidiary which commenced operations in June 2007. Effective March 16, 2020, we re-domesticated Maiden Reinsurance from Bermuda to Vermont in the U