~~Level 3~~ — Valuations based on models where significant inputs are not observable. The unobservable inputs reflect our own assumptions about assumptions that market participants would use. Examples of assets and liabilities utilizing Level 3 inputs include: an investment in preference shares of a start-up insurance producer.

•

Level 2 — Valuations based on quoted prices for similar assets or liabilities in active markets, quoted prices for identical assets or liabilities in inactive markets, or valuations based on models where the significant inputs are observable (e.g. interest rates, yield curves, prepayment speeds, default rates, loss severities, etc.) or can be corroborated by observable market data. Examples of assets and liabilities utilizing Level 2 inputs include: U.S. government-sponsored agency securities; non-U.S. government and supranational obligations; commercial mortgage-backed securities ("CMBS"); collateralized loan obligations ("CLO"); corporate and municipal bonds; and


•	Level 3 — Valuations based on models where significant inputs are not observable. The unobservable inputs reflect our own assumptions about assumptions that market participants would use. Examples of assets and liabilities utilizing Level 3 inputs include: an investment in preference shares of a start-up insurance producer.

The availability of observable inputs can vary ~~from financial instrument to financial instrument~~ and is affected by a wide variety of factors, including, for example, the type of financial instrument, whether the financial instrument is new and not yet established in the marketplace, and other characteristics particular to the transaction. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires significantly more judgment. Accordingly, the degree of judgment exercised by management in determining fair value is greatest for instruments categorized in Level 3. We use prices and inputs that are current at the measurement date. In periods of market dislocation, the observability of prices and inputs may be reduced for many instruments. This condition could cause an instrument to be reclassified between levels.

For investments that have quoted market prices in active markets, the Company uses the quoted market prices as fair value and includes these prices in the amounts disclosed in the Level 1 hierarchy. The Company receives the quoted market prices from a third party nationally recognized provider, the Pricing Service. When quoted market prices are unavailable, the Company utilizes the Pricing Service to determine an estimate of fair value. The fair value estimates are included in the Level 2 hierarchy. The Company will challenge any prices for its investments which are considered not to be representation of fair value. If quoted market prices and an estimate from the Pricing Service are unavailable, the Company produces an estimate of fair value based on dealer quotations for recent activity in positions with the same or similar characteristics to that being valued or through consensus pricing of a pricing service. The Company determines whether the fair value estimate is in the Level 2 or Level 3 hierarchy depending on the level of observable inputs available when estimating the fair value. The Company bases its estimates of fair values for assets on the bid price as it represents what a third party market participant would be willing to pay in an orderly transaction.

ASC 825, “"Disclosure About Fair Value of Financial Instruments", requires all entities to disclose the fair value of their financial instruments, both assets and liabilities recognized and not recognized in the balance sheet, for which it is practicable to estimate fair value. The following describes the valuation techniques used by the Company to determine the fair value of financial instruments held at September 30, 2018 and December 31, 2017.

U.S. government and U.S. agency — Bonds issued by the U.S. Treasury, the Federal Home Loan Bank, the Federal Home Loan Mortgage Corporation, Government National Mortgage Association, Federal National Mortgage Association and the Federal ~~National Mortgage Association.~~Farm Credit Banks Funding Corporation. The fair values of U.S. treasury bonds are based on quoted market prices in active markets, and are included in the Level 1 fair value hierarchy. We believe the market for U.S. treasury bonds is an actively traded market given the high level of daily trading volume. The fair values of U.S. agency bonds are determined using the spread above the risk-free yield curve. As the yields for the risk-free yield curve and the spreads for these securities are observable market inputs, the fair values of U.S. agency bonds are included in the Level 2 fair value hierarchy.

~~MAIDEN HOLDINGS, LTD.~~

~~NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)~~

~~(in thousands of U.S. dollars, except share and per share data)~~

~~5. Fair Value of Financial Instruments (continued)~~

Non-U.S. government and supranational bonds — These securities are generally priced by independent pricing services. The Pricing Service may use current market trades for securities with similar quality, maturity and coupon. If no such trades are available, the Pricing Service typically uses analytical models which may incorporate spreads, interest rate data and market/sector news. As the significant inputs used to price non-U.S. government and supranational bonds are observable market inputs, the fair values of non-U.S. government and supranational bonds are included in the Level 2 fair value hierarchy.

Asset-backed securities — These securities comprise CMBS and CLO originated by a variety of financial institutions that on acquisition are rated BBB-/Baa3 or higher. These securities are priced by independent pricing services and brokers. The pricing provider applies dealer quotes and other available trade information, prepayment speeds, yield curves and credit spreads to the valuation. As the significant inputs used to price the CMBS and CLO are observable market inputs, the fair value of the CMBS and CLO issecurities are included in the Level 2 fair value hierarchy.

Corporate bonds — Bonds issued by corporations that on acquisition are rated BBB-/Baa3 or higher. These securities are generally priced by independent pricing services. The spreads are sourced from broker/dealers, trade prices and the new issue market. Where pricing is unavailable from pricing services, we obtain non-binding quotes from broker-dealers. As the significant inputs used to price corporate bonds are observable market inputs, the fair values of corporate bonds are included in the Level 2 fair value hierarchy.

Municipal bonds — Bonds issued by U.S. state and municipality entities or agencies. The fair values of municipal bonds are generally priced by independent pricing services. The pricing services typically use spreads obtained from broker-dealers, trade prices and the new issue market. As the significant inputs used to price the municipal bonds are observable market inputs, municipal bonds are ~~classified within~~included in the Level 2.2 fair value hierarchy.

MAIDEN HOLDINGS, LTD.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

(in thousands of U.S. dollars, except share and per share data)

5. Fair Value of Financial Instruments (continued)

Other investments — Includes ~~both quoted and~~ unquoted ~~investments. The fair value~~investments comprised of ~~our quoted equity investment is obtained from the Pricing Service and is classified within Level 1. The quoted equity investment was sold in the third quarter of 2017.~~

~~Unquoted other investments comprise~~ investments in limited partnerships and ~~two~~other investments which includes investments in lending vehicles as well as investments in start-up insurance ~~related companies.~~entities. The fair values of the limited partnerships are determined by the fund manager based on recent filings, operating results, balance sheet stability, growth and other business and market sector fundamentals. The fair value of these investments are measured using the NAV practical expedient and therefore have not been categorized within the fair value hierarchy. If there is a reporting lag between the current period end and reporting date of the latest available fund valuation, we estimate fair values by starting with the most recently available valuation and adjusting for return estimates as well as any subscriptions and distributions that took place during the current period.

The fair value of the other investments, including those investments in ~~the~~lending vehicles and start-up insurance ~~related companies~~entities, was determined using recent private market transactions and as such, the fair value is included in the Level 3 fair value hierarchy.

Cash and cash equivalents (including restricted amounts), accrued investment income, reinsurance balances receivable, and certain other assets and liabilities — The carrying values reported in the Condensed Consolidated Balance Sheets for these financial instruments approximate their fair value due to their short term nature and are classified as Level 2.

Loan to related party — The carrying value reported in the Condensed Consolidated Balance Sheets for this financial instrument approximates its fair value and it is included in the Level 2 hierarchy.

Senior notes —The amount reported in the Condensed Consolidated Balance Sheets for these financial instruments represents the carrying value of the notes. The fair values are based on indicative market pricing obtained from a third-party service provider and as such, are included in the Level 2 hierarchy.

(b) Fair Value Hierarchy

The Company’s estimates of fair value for financial assets and financial liabilities are based on the framework established in ASC 820. The framework is based on the inputs used in valuation and gives the highest priority to quoted prices in active markets and requires that observable inputs be used in the valuations when available. The disclosure of fair value estimates in the ASC 820 hierarchy is based on whether the significant inputs into the valuation are observable. In determining the level of the hierarchy in which the estimate is disclosed, the highest priority is given to unadjusted quoted prices in active markets and the lowest priority to unobservable inputs that reflect the Company’s significant market assumptions.

At September 30, 2018 and December 31, 2017, we classified our financial instruments measured at fair value on a recurring basis in the following valuation hierarchy:



September 30, 2018	Quoted Prices in Active Markets for Identical Assets (Level 1)			Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)			Fair Value Based on NAV Practical Expedient			Total Fair Value
AFS fixed maturities
U.S. treasury bonds	$	124		$	—		$	—		$	—		$	124
U.S. agency bonds – mortgage-backed	—			1,427,196			—			—			1,427,196
U.S. agency bonds – other	—			23,690			—			—			23,690
Non-U.S. government and supranational bonds	—			20,845			—			—			20,845
Asset-backed securities	—			225,204			—			—			225,204
Corporate bonds	—			1,084,494			—			—			1,084,494
Other investments	—			—			19,032			3,554			22,586
Total	$	124		$	2,781,429		$	19,032		$	3,554		$	2,804,139
As a percentage of total assets	—		%	42.6		%	0.3		%	0.1		%	43.0		%

MAIDEN HOLDINGS, LTD.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

(in thousands of U.S. dollars, except share and per share data)

5. Fair Value of Financial Instruments (continued)

~~At September 30, 2017 and December 31, 2016, we classified our financial instruments measured at fair value on a recurring basis in the following valuation hierarchy:~~



December 31, 2017	Quoted Prices in Active Markets for Identical Assets (Level 1)			Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)			Fair Value Based on NAV Practical Expedient			Total Fair Value
AFS fixed maturities
U.S. treasury bonds	$	35,097		$	—		$	—		$	—		$	35,097
U.S. agency bonds – mortgage-backed	—			1,468,140			—			—			1,468,140
U.S. agency bonds – other	—			19,719			—			—			19,719
Non-U.S. government and supranational bonds	—			30,898			—			—			30,898
Asset-backed securities	—			228,393			—			—			228,393
Corporate bonds	—			925,269			—			—			925,269
Other investments	—			—			1,500			5,100			6,600
Total	$	35,097		$	2,672,419		$	1,500		$	5,100		$	2,714,116
As a percentage of total assets	0.5		%	40.2		%	—		%	0.1		%	40.8		%

September 30, 2017 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Fair Value Based on NAV Practical Expedient Total Fair Value
AFS fixed maturities
U.S. treasury bonds $ 5,336
$ —
$ —
$ —
$ 5,336
U.S. agency bonds – mortgage-backed —
2,006,402
—
—
2,006,402
Non-U.S. government and supranational bonds —
31,596
—
—
31,596
Asset-backed securities —
262,261
—
—
262,261
Corporate bonds —
1,576,389
—
—
1,576,389
Municipal bonds —
2,603
—
—
2,603
Other investments —
—
1,500
5,541
7,041
Total $ 5,336
$ 3,879,251
$ 1,500
$ 5,541
$ 3,891,628
As a percentage of total assets 0.1 % 56.7 % — % 0.1 % 56.9 %

December 31, 2016 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Fair Value Based on NAV Practical Expedient Total Fair Value
AFS fixed maturities
U.S. treasury bonds $ 5,413
$ —
$ —
$ —
$ 5,413
U.S. agency bonds – mortgage-backed —
1,716,038
—
—
1,716,038
U.S. agency bonds – other —
18,102
—
—
18,102
Non-U.S. government and supranational bonds —
29,934
—
—
29,934
Asset-backed securities —
220,876
—
—
220,876
Corporate bonds —
1,916,205
—
—
1,916,205
Municipal bonds —
65,098
—
—
65,098
Other investments 6,586
—
1,000
5,474
13,060
Total $ 11,999
$ 3,966,253
$ 1,000
$ 5,474
$ 3,984,726
As a percentage of total assets 0.2 % 63.4 % — % 0.1 % 63.7 %

The Company utilizes a Pricing Service to assist in determining the fair value of our investments; however, management is ultimately responsible for all fair values presented in the Company’s financial statements. This includes responsibility for monitoring the fair value process, ensuring objective and reliable valuation practices and pricing of assets and liabilities and pricing sources. The Company analyzes and reviews the information and prices received from the Pricing Service to ensure that the prices represent a reasonable estimate of the fair value.

The Pricing Service was utilized to estimate fair value measurements for ~~approximately 99.9%~~100.0% and ~~98.8%~~99.8% of ~~its~~our fixed maturities at September 30, ~~2017~~2018 and December 31, ~~2016,~~2017, respectively. The Pricing Service utilizes market quotations for fixed maturity securities that have quoted market prices in active markets. Since fixed maturities other than U.S. treasury bonds generally do not trade actively on a daily basis, the Pricing Service prepares estimates of fair value measurements using relevant market data, benchmark curves, sector groupings and matrix pricing and these have been classified as Level 2.

At ~~September 30, 2017 and~~ December 31, ~~2016, 0.1% and 1.2%, respectively,~~2017, 0.2% of the fixed maturities are valued using the market approach. ~~At each of those dates, a total of three~~Three securities or approximately ~~$6,463 and $56,674, respectively,~~$9,489 of Level 2 fixed maturities, were priced using a quotation from a broker and/or custodian as opposed to the Pricing Service due to lack of information available. At September 30, ~~2017~~2018 and December 31, ~~2016,~~2017, we have not adjusted any pricing provided to us based on the review performed by our investment managers.

~~MAIDEN HOLDINGS, LTD.~~

~~NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)~~

~~(in thousands of U.S. dollars, except share and per share data)~~

~~5. Fair Value of Financial Instruments (continued)~~

The Company utilized a Pricing Service to estimate fair value measurement for the quoted equity investment reflecting the closing price quoted for the final trading day of the period and is included in Level 1. The quoted equity investment was sold in the third quarter of 2017.

There ~~have not been any~~were no transfers between Level 1 and Level 2 and there ~~has not been any~~were no transfers to or from Level 3 during the periods represented by these Condensed Consolidated Financial Statements.

~~The~~At September 30, 2018, the Company ~~also~~ has other investments of ~~$1,500~~$19,032 (December 31, ~~2016~~2017 - ~~$1,000)~~$1,500) including investments in lending vehicles as well as investments in start-up insurance ~~related companies,~~entities, the fair value of each was determined using recent private market transactions. Due to the significant unobservable inputs in these valuations, the Company includes the estimate of the fair value of these unquoted investments as Level 3.

~~The Company has determined that its investment in Level 3 securities is not material to its financial position or results of operations.~~ During the three and nine months ended September 30, ~~2017~~2018 and ~~2016,~~2017, there have been no transfers into or out of Level 3.

(d) Financial Instruments not measured at Fair Value

The following table presents the fair value and carrying value or principal amount of the financial instruments not measured at fair value:



	September 30, 2018				December 31, 2017
Financial Assets	Carrying Value		Fair Value		Carrying Value		Fair Value
HTM – corporate bonds	$	974,947	$	962,860	$	1,037,464	$	1,065,245
HTM – municipal bonds	57,938		56,881		60,337		60,381
Total financial assets	$	1,032,885	$	1,019,741	$	1,097,801	$	1,125,626

Financial Liabilities
Senior Notes - MHLA – 6.625%	$	110,000	$	75,812	$	110,000	$	101,200
Senior Notes - MHNC – 7.75%	152,500		124,135		152,500		149,029
Total financial liabilities	$	262,500	$	199,947	$	262,500	$	250,229

September 30, 2017 December 31, 2016
Carrying Value Fair Value Carrying Value Fair Value
Financial Assets
HTM – corporate bonds $ 1,057,943
$ 1,091,222
$ 752,212
$ 766,135
HTM – municipal bonds 60,425
60,884
—
—
Total financial assets $ 1,118,368
$ 1,152,106
$ 752,212
$ 766,135

Financial Liabilities
Senior Notes - MHLA – 6.625% $ 110,000
$ 117,040
$ 110,000
$ 111,452
Senior Notes - MHNC – 7.75% 152,500
159,600
152,500
164,700
Senior Notes - MHNB – 8.00%⁽¹⁾
—
—
100,000
101,600
Total financial liabilities $ 262,500
$ 276,640
$ 362,500
$ 377,752


~~(1)~~	~~Please refer to~~ ~~"Note 6. Long-Term Debt",~~ ~~for disclosure regarding the redemption of the 2012 Senior Notes during the second quarter of 2017.~~

MAIDEN HOLDINGS, LTD.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

(in thousands of U.S. dollars, except share and per share data)

6. Goodwill and Intangible Assets

The goodwill and intangible assets are assigned to our Diversified Reinsurance segment. The following table shows the change in the carrying value of goodwill and intangible assets held:



	Goodwill			Intangible Assets			Total
December 31, 2016	$	57,192		$	20,523		$	77,715
Amortization	—			(2,132		)	(2,132		)
December 31, 2017	$	57,192		$	18,391		$	75,583
Amortization	—			(1,387		)	(1,387		)
Impairment losses	(57,192		)	(17,004		)	(74,196		)
September 30, 2018	$	—		$	—		$	—

The goodwill and intangible assets are subject to annual impairment testing on October 1 or when “triggering events” occur or circumstances change that could potentially reduce the fair value of a reporting unit below its carrying amount. Goodwill is considered impaired if the carrying amount of the reporting unit exceeds the fair value.

The announced sale of our U.S. treaty reinsurance operations resulted in a triggering event and consequently during the three and nine months ended September 30, 2018, the Company has written off the remaining balance of goodwill and intangible assets. The goodwill and intangible assets were deemed to be permanently impaired due to the sale of the U.S. treaty reinsurance renewal rights and the anticipated sale of the U.S. Diversified Reinsurance business. Please refer to "Note 8. Discontinued Operations" for further details of this disposal. The Company recognized an impairment loss of $74,196 as a result of these dispositions, which is presented in the Condensed Consolidated Statements of Income as part of the loss from discontinued operations for the three and nine months ended September 30, 2018. No impairment was recorded during the same periods in 2017.

The following tables show the analysis of goodwill and intangible assets classified as held for sale at September 30, 2018 and December 31, 2017 (please refer to "Note 8. Discontinued Operations" for further details):



September 30, 2018	Gross		Accumulated Amortization			Accumulated Impairment			Net		Useful Life
Goodwill	$	58,992	$	—		$	(58,992	)	$	—	Indefinite
State licenses	4,527		—			(4,527		)	—		Indefinite
Customer relationships	51,400		(38,923		)	(12,477		)	—		15 years double declining
Net balance	$	114,919	$	(38,923	)	$	(75,996	)	$	—



December 31, 2017	Gross		Accumulated Amortization			Accumulated Impairment			Net		Useful Life
Goodwill	$	58,992	$	—		$	(1,800	)	$	57,192	Indefinite
State licenses	4,527		—			—			4,527		Indefinite
Customer relationships	51,400		(37,536		)	—			13,864		15 years double declining
Net balance	$	114,919	$	(37,536	)	$	(1,800	)	$	75,583

7. Long-Term Debt

Senior Notes

At September 30, 2018 and December 31, 2017, Maiden Holdings and its wholly owned subsidiary, Maiden ~~Holdings North America, Ltd. ("Maiden NA"),~~NA, both have an outstanding public debt offering of senior notes, ~~which were issued in 2016 and 2013, respectively,~~ (the "Senior Notes"). The 2013 Senior Notes ~~issuance made~~issued by ~~Maiden NA is~~the subsidiary are fully and unconditionally guaranteed by ~~the Company.~~Maiden Holdings. The Senior Notes are unsecured and unsubordinated ~~obligation~~obligations of the Company. As discussed in "Note 1. Basis of Presentation", the transactions contemplated by the Master Transaction Agreement are expected to close in the fourth quarter of 2018 subject to regulatory approvals and customary closing conditions. The Company’s current analysis indicates that the conditions to redeem the 2013 Senior Notes as stipulated by the securities may exist. Should final analysis support such a conclusion, the Company expects to redeem all of the $152,500 2013 Senior Notes at that time pursuant to the terms of the underlying securities.

MAIDEN HOLDINGS, LTD.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

(in thousands of U.S. dollars, except share and per share data)

7. Long-Term Debt (continued)

The following table details the Company's Senior Notes issuances as of September 30, 2018 and December 31, 2017:



September 30, 2018	2016 Senior Notes			2013 Senior Notes			Total
Principal amount	$	110,000		$	152,500		$	262,500
Less: unamortized issuance costs	3,622			4,238			7,860
Carrying value	$	106,378		$	148,262		$	254,640

December 31, 2017	2016 Senior Notes			2013 Senior Notes			Total
Principal amount	$	110,000		$	152,500		$	262,500
Less: unamortized issuance costs	3,654			4,364			8,018
Carrying value	$	106,346		$	148,136		$	254,482

Other details:
Original debt issuance costs	$	3,715		$	5,054
Maturity date	June 14, 2046			Dec 1, 2043
Earliest redeemable date (for cash)	June 14, 2021			Dec 1, 2018
Coupon rate	6.625		%	7.75		%
Effective interest rate	7.07		%	8.04		%

The interest expense incurred on the Senior Notes for the three and nine months ended September 30, 2018 was $4,776 and $14,329, respectively (2017 - $4,776 and $18,218, respectively) of which $1,342 was accrued at September 30, 2018 and December 31, 2017, respectively. The issuance costs related to the Senior Notes were capitalized and are being amortized over the life of the Senior Notes. The amount of amortization expense for the three and nine months ended September 30, 2018 was $53 and $158, respectively (2017 - $53 and $212, respectively).

On June 27, 2017, we fully redeemed all of the 2012 Senior Notes using a portion of the proceeds from the Preference Shares - Series D issuance ~~(see related discussion~~as previously disclosed in ~~"Note 11. Shareholders' Equity"~~).the Annual Report on Form 10-K for the year ended December 31, 2017. The 2012 Senior Notes were redeemed at a redemption price equal to 100% of the principal amount of $100,000 plus accrued and unpaid interest on the principal amount being redeemed up to, but not including, the redemption date. As a result, the Company accelerated the amortization of the remaining 2012 Senior Note issuance cost of ~~$2,809.~~

~~The following table details the Company's Senior Notes issuances as of September 30, 2017 and December 31, 2016:~~

September 30, 2017 2016 Senior Notes 2013 Senior Notes 2012 Senior Notes Total
Principal amount $ 110,000
$ 152,500
$ —
$ 262,500
Less: unamortized issuance costs 3,664
4,406
—
8,070
Carrying value $ 106,336
$ 148,094
$ —
$ 254,430

December 31, 2016 2016 Senior Notes 2013 Senior Notes 2012 Senior Notes Total
Principal amount $ 110,000
$ 152,500
$ 100,000
$ 362,500
Less: unamortized issuance costs 3,694
4,532
2,865
11,091
Carrying value $ 106,306
$ 147,968
$ 97,135
$ 351,409

Other details:
Original debt issuance costs $ 3,715
$ 5,054
$ 3,406

Maturity date June 14, 2046
Dec 1, 2043
Mar 27, 2042

Earliest redeemable date (for cash) June 14, 2021
Dec 1, 2018
Mar 27, 2017

Coupon rate 6.625 % 7.75 % 8.00 %
Effective interest rate 7.07 % 8.04 % 8.31 %

~~The interest expense incurred on the Senior Notes~~$2,809 for the ~~three and~~ nine months ended September 30, ~~2017~~2017.

8. Discontinued Operations

Sale of U.S. Treaty Reinsurance operations

As described in "Note 1. Basis of Presentation", on August 29, 2018, the Company entered into a Renewal Rights transaction with TransRe. The Company continues to earn premiums and remain liable for losses occurring subsequent to August 29, 2018 for any policies in force prior to and as of August 29, 2018, until those policies expire. Subsequently, on August 31, 2018, the Company entered into a Master Transaction Agreement with Enstar.

The Company estimated the fair value of the net assets held for sale to be based on the estimated selling price less costs to sell and was ~~$4,776 and $18,218, respectively, (2016 - $6,776 and $21,049, respectively)~~classified as Level 2 within the fair value hierarchy as of ~~which $1,342 and $1,453 was accrued at~~ September 30, ~~2017~~2018. The classes of assets and liabilities to be sold and classified as held for sale as of September 30, 2018 and December 31, ~~2016, respectively. The issuance costs related to the Senior Notes were capitalized and are being amortized over the life~~2017 consist of the ~~Senior Notes. The amount of amortization expense for the three and nine months ended September 30, 2017 was $53 and $212, respectively, (2016 - $80 and $265, respectively).~~following:

MAIDEN HOLDINGS, LTD.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

(in thousands of U.S. dollars, except share and per share data)

8. Discontinued Operations (continued)



	September 30, 2018		December 31, 2017
	(Unaudited)
ASSETS
Fixed maturities, available-for-sale, at fair value	$	1,153,793	$	1,336,854
Cash and cash equivalents	16,723		13,449
Restricted cash and cash equivalents	34,956		28,679
Accrued investment income	6,575		6,195
Reinsurance balances receivable, net	227,454		272,549
Reinsurance recoverable on unpaid losses	75,197		92,728
Deferred commission and other acquisition expenses	50,532		59,393
Goodwill and intangible assets, net	—		75,583
Other assets	50,256		16,388
Total assets held for sale	$	1,615,486	$	1,901,818
LIABILITIES
Reserve for loss and loss adjustment expenses	$	1,098,119	$	1,160,526
Unearned premiums	224,794		246,156
Accrued expenses and other liabilities	16,705		42,726
Total liabilities held for sale	$	1,339,618	$	1,449,408

The following table summarizes the major classes of line items constituting the total loss from discontinued operations for the three and nine months ended September 30, 2018 and 2017, respectively, in which the results of operations of the discontinued operations are presented in the Condensed Consolidated Statements of Income:



	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
	2018			2017			2018			2017
Gross premiums written	$	130,200		$	187,971		$	492,222		$	608,835
Net premiums written	$	128,398		$	184,653		$	479,640		$	598,536
Net premiums earned	170,579			196,588			502,156			562,038
Net investment income	9,675			9,873			29,729			31,895
Net loss and loss adjustment expenses	(129,414		)	(165,121		)	(371,085		)	(454,549		)
Commission and other acquisition expenses	(44,158		)	(48,110		)	(122,109		)	(137,759		)
General and administrative expenses	(10,929		)	(4,053		)	(21,046		)	(14,091		)
Amortization of intangible assets	(462		)	(533		)	(1,387		)	(1,599		)
(Loss) income from discontinued operations before income taxes	(4,709		)	(11,356		)	16,258			(14,065		)
Loss on disposal of discontinued operations	(66,697		)	—			(66,697		)	—
Income tax benefit (expense)	306			1,448			6,103			(2,995		)
Loss from discontinued operations, net of income tax	$	(71,100	)	$	(9,908	)	$	(44,336	)	$	(17,060	)

The loss on disposal from discontinued operations for the three and nine months ended September 30, 2018 includes the impairment of goodwill and intangible assets of $74,196 that was recognized due to the sale of Maiden US partly offset by the proceeds of the sale of the Renewal Rights of $7,500. Please refer to "Note 6. Goodwill and Intangible Assets" for additional information regarding the Company's impairment of goodwill and intangible assets that was recognized during the three and nine months ended September 30, 2018.

MAIDEN HOLDINGS, LTD.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

(in thousands of U.S. dollars, except share and per share data)

9. Reserve for Loss and Loss Adjustment Expenses

~~Our reserve for loss and LAE comprises:~~

September 30, 2017 December 31, 2016
Reserve for reported loss and LAE $ 1,898,474
$ 1,617,956
Reserve for losses incurred but not reported ("IBNR") 1,466,537
1,278,540
Reserve for loss and LAE $ 3,365,011
$ 2,896,496

The ~~following table represents a reconciliation of our beginning and ending gross and net loss and LAE reserves:~~

For the Nine Months Ended September 30, 2017 2016
Gross loss and LAE reserves, January 1 $ 2,896,496
$ 2,510,101
Less: reinsurance recoverable on unpaid losses, January 1 99,936
71,248
Net loss and LAE reserves, January 1 2,796,560
2,438,853
Net incurred losses related to:
Current year 1,394,623
1,255,493
Prior years 150,534
41,868
1,545,157
1,297,361
Net paid losses related to:
Current year (400,908 ) (356,135 )
Prior years (765,049 ) (722,395 )
(1,165,957 ) (1,078,530 )
Effect of foreign exchange movements 48,622
4,764
Net loss and LAE reserves, September 30 3,224,382
2,662,448
Reinsurance recoverable on unpaid losses, September 30 140,629
97,070
Gross loss and LAE reserves, September 30 $ 3,365,011
$ 2,759,518

~~Management believes that its use of~~Company uses both historical experience and industry-wide loss development factors to provide a reasonable basis for estimating future losses. In the future, certain events may be beyond the control of management, such as changes in law, judicial interpretations of law, and inflation, which may favorably or unfavorably impact the ultimate settlement of the Company’s loss and LAE reserves.

The anticipated effect of inflation is implicitly considered when estimating liabilities for loss and LAE. While anticipated changes in claim costs due to inflation are considered in estimating the ultimate claim costs, changes in average severity of claims are caused by a number of factors that vary with the individual type of policy written. Ultimate losses are projected based on historical trends adjusted for implemented changes in underwriting standards, policy provisions, and general economic trends. Those anticipated trends are monitored based on actual development and are modified if necessary.

The reserving process begins with the collection and analysis of paid losses and incurred claims data for each of our contracts. While reserves are reviewed on a contract by contract basis, paid losses and incurred claims data is also aggregated into reserving segments. The segmental data is disaggregated by reserving class and further disaggregated by either accident year (i.e. the year in which the loss event occurred) or by underwriting year (i.e. the year in which the contract generating the premium and losses incepted). The Company uses underwriting year information to analyze our Diversified Reinsurance segment and subsequently allocate reserves to the respective accident years. Our reserve for loss and LAE comprises:



	September 30, 2018		December 31, 2017
Reserve for reported loss and LAE	$	1,577,494	$	1,393,560
Reserve for losses incurred but not reported ("IBNR")	1,274,191		993,162
Reserve for loss and LAE	$	2,851,685	$	2,386,722

The following table represents a reconciliation of our beginning and ending gross and net loss and LAE reserves:



For the Nine Months Ended September 30,	2018			2017
Gross loss and LAE reserves, January 1	$	2,386,722		$	1,845,407
Less: reinsurance recoverable on unpaid losses, January 1	24,883			35,948
Net loss and LAE reserves, January 1	2,361,839			1,809,459
Net incurred losses related to:
Current year	1,073,052			979,416
Prior years	250,451			111,192
	1,323,503			1,090,608
Net paid losses related to:
Current year	(283,477		)	(273,050		)
Prior years	(555,718		)	(501,799		)
	(839,195		)	(774,849		)
Commuted recoverables	19,929			—
Effect of foreign exchange movements	(16,202		)	48,622
Net loss and LAE reserves, September 30	2,849,874			2,173,840
Reinsurance recoverable on unpaid losses, September 30	1,811			45,643
Gross loss and LAE reserves, September 30	$	2,851,685		$	2,219,483

Effective July 1, 2018, Maiden Bermuda commuted its retrocessional quota share agreements with a highly rated global insurer which incepted on January 1, 2015.

Prior period development arises from changes to loss estimates recognized in the current year that relate to loss reserves in previous calendar years. The development reflects changes in management's best estimate of the ultimate losses under the relevant reinsurance policies after review of changes in actuarial assessments.

During the three and nine months ended September 30, ~~2017,~~2018, the Company recognized approximately ~~$77,670~~$212,473 and ~~$150,534,~~$250,451, respectively ~~(2016~~(2017 - ~~$12,446~~$64,044 and ~~$41,868,~~$111,192, respectively) of net adverse development in both the Diversified Reinsurance and AmTrust Reinsurance segments as well as in its run-off business.

~~For~~In the Diversified Reinsurance segment, the adverse prior year loss development was ~~$7,878~~$671 and ~~$39,486~~$1,756, respectively for the three and nine months ended September 30, ~~2017, respectively (2016~~2018 (2017 - ~~$10,408~~$1,079 and ~~$37,404,~~$8,482, respectively) ~~which was largely~~primarily due to ~~a higher than expected~~adverse prior year loss ~~emergence emanating largely from~~development in facultative ~~commercial auto as well as a handful of specific contracts across several lines of business.~~reinsurance run-off partially offset by favorable development in International Auto.

For the AmTrust Reinsurance segment, the net adverse development was $61,127 and $100,872 for the three and nine months ended September 30, 2017, respectively, largely from program and non-program general liability, auto liability and workers compensation lines where elevated loss activity has been observed, $16,237 of which, came from one program that was terminated on September 1, 2017 (2016 - $1,993 and $1,524, respectively).

Our Other category also incurred adverse development of $8,665 and $10,176 for the three and nine months ended September 30, 2017, respectively, (2016 - $45 and $2,940, respectively) due to increased reserves in the remaining run–off litigated U.S. E&S property claims and increased reserves in the run–off of the NGHC Quota Share Reinsurance Agreement.

MAIDEN HOLDINGS, LTD.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

(in thousands of U.S. dollars, except share and per share data)

7.9. Reserve for Loss and Loss Adjustment Expenses (continued)

~~For~~In the AmTrust Reinsurance segment, the adverse prior year loss development was $210,433 and $247,326 for the three and nine months ended September 30, 2018, respectively (2017 - $61,127 and $100,872, respectively). The 2018 development was largely from Workers Compensation which represented nearly half of the adverse development and was primarily driven by accident years 2014 to 2017, and to a lesser extent, development in European hospital liability and Commercial Auto and General Liability lines of business. The development in 2017 was primarily due to Worker's Compensation, General liability as well as Commercial Auto liability lines of business for both Specialty Programs and Small Commercial Business where elevated loss activity had been observed.

Our Other category also incurred adverse prior year loss development of $1,369 for both the ~~Company recorded an estimate of $20,000 in losses from Hurricanes Harvey~~three and ~~Irma, predominantly~~nine months ended September 30, 2018 (2017 - $1,838 and $1,838, respectively) due to increased reserves in the ~~Diversified segment largely from~~run-off of the ~~property and casualty lines. The Company expects no impact from the Mexico earthquakes or Hurricane Maria.~~NGHC Quota Share Reinsurance Agreement.

8.10. Related Party Transactions

The Founding Shareholders of the Company are Michael Karfunkel, George Karfunkel and Barry Zyskind. Michael Karfunkel passed away on April 27, 2016. Based on each individual's most recent public filing, Leah Karfunkel (wife of Michael Karfunkel) owns or controls approximately ~~8.0%~~8.2% of the outstanding shares of the Company and Barry Zyskind (the Company's non-executive chairman) owns or controls approximately ~~7.6%~~7.7% of the outstanding shares of the ~~Company as at September 30, 2017.~~Company. George Karfunkel ~~now~~ owns or controls less than 5.0% of the outstanding shares of the ~~Company as at September 30, 2017 so there is no longer a public filing requirement.~~Company. Leah Karfunkel and George Karfunkel are directors of AmTrust, and Barry Zyskind is the president, ~~CEO~~chief executive officer and chairman of AmTrust. Leah Karfunkel, George Karfunkel and Barry Zyskind own or control approximately ~~42.8%~~44.0% of the outstanding shares of AmTrust. AmTrust owns 1.6% of the issued and outstanding shares of National General Holdings Corporation ("NGHC") ~~common stock,~~, and Leah Karfunkel and the Michael Karfunkel 2005 Family Trust (which is controlled by Leah Karfunkel) owns ~~41.8%~~41.7% of the outstanding common shares ~~of NGHC. Barry Zyskind is the non-executive chairman~~ of NGHC.

AmTrust

The following describes transactions between the Company and AmTrust:

AmTrust Quota Share Reinsurance Agreement

Effective July 1, 2007, the Company and AmTrust entered into a master agreement, as amended (the "Master Agreement"), by which they caused Maiden Bermuda, a wholly owned subsidiary of the Company, and AmTrust's Bermuda reinsurance subsidiary, AmTrust International Insurance, Ltd. ("AII"), to enter into a quota share reinsurance agreement (the "Reinsurance Agreement") by which AII retrocedes to Maiden Bermuda an amount equal to 40% of the premium written by subsidiaries of AmTrust, net of the cost of unaffiliated inuring reinsurance and 40% of losses. The Master Agreement further provided that AII receives a ceding commission of 31% of ceded written premiums. On June 11, 2008, Maiden Bermuda and AII amended the Reinsurance Agreement to add Retail Commercial Package Business to the Covered Business. AII receives a ceding commission of 34.375% on Retail Commercial Package Business.

On July 1, 2016, the agreement was renewed through June 30, 2019. The agreement automatically renews for successive three-year periods thereafter unless AII or Maiden Bermuda elects to so terminate the Reinsurance Agreement by giving written notice to the other party not less than five months prior to July 1, 2019 or not less than nine months prior to the expiration of any successive three-year period. Either party is entitled to terminate on thirty days' notice or less upon the occurrence of certain early termination events, which include a default in payment, insolvency, change in control of AII or Maiden Bermuda, run-off, or a reduction of 50% or more of the shareholders' equity of Maiden Bermuda or the combined shareholders' equity of AII and the AmTrust subsidiaries.On August 8, 2018, the Company’s and AmTrust’s Board of Directors agreed to extend the renewal provision for the Quota Share Reinsurance Agreement between Maiden Bermuda and AII. The new written notice date for renewal of the agreement has been extended from September 30, 2018 to January 31, 2019.

Effective July 1, 2018, the amount AEL cedes to the Company was reduced to 20%.

Additionally, for the Specialty Program portion of Covered Business only, AII will be responsible for ultimate net loss otherwise recoverable from Maiden Bermuda to the extent that the loss ratio to Maiden Bermuda, which shall be determined on an inception to date basis from July 1, 2007 through the date of calculation, is between 81.5% and 95%. Above and below the defined corridor, Maiden Bermuda will continue to reinsure losses at its proportional 40% share per the Reinsurance Agreement.

AmTrust European Hospital Liability Quota Share Agreement ("European Hospital Liability Quota Share")

Effective April 1, 2011, Maiden Bermuda, entered into a quota share reinsurance contract with ~~AmTrust Europe Limited ("AEL")~~AEL and AmTrust International Underwriters Limited ("AIUL"), both wholly owned subsidiaries of AmTrust. Pursuant to the terms of the contract, Maiden Bermuda assumed 40% of the premiums and losses related to policies classified as European Hospital Liability, including associated liability coverages and policies covering physician defense costs, written or renewed on or after April 1, 2011. The contract also covers policies written or renewed on or before March 31, 2011, but only with respect to losses that occur, accrue or arise on or after April 1, 2011. The maximum limit of liability attaching shall be €5,000 (€10,000 effective January 1, 2012) or currency equivalent (on a 100% basis) per original claim for any one original policy. Maiden Bermuda will pay a ceding commission of 5%. The agreement ~~has been~~is renewed through March 31, ~~2018~~2019 and can be terminated at any April 1 by either party on four months notice.

Effective July 1, 2016, the contract was amended such that Maiden Bermuda assumes from AEL 32.5% of the premiums and losses of all policies written or renewed on or after July 1, 2016 until June 30, 2017 and 20% of all policies written or renewed on or after July 1, 2017. For the three and nine months ended September 30, 2017, the Company recorded approximately $138,171 and $460,667 (2016 - $163,336 and $447,767, respectively) of commission expense as a result of both of these quota share arrangements with AmTrust.

MAIDEN HOLDINGS, LTD.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

(in thousands of U.S. dollars, except share and per share data)

8.10. Related Party Transactions (continued)

~~Other Reinsurance Agreements~~

~~Effective September 1, 2010,~~The table below shows the ~~Company, through a subsidiary, entered into a~~effect of both of these quota share ~~reinsurance agreement~~arrangements with ~~Technology Insurance Company, Inc. ("Technology"), a subsidiary~~AmTrust on the Company's results of AmTrust. Under the agreement, we ceded (a) 90% of its gross liability written under the Open Lending Program ("OPL") and (b) 100% of its surplus lines general liability business under the Naxos Avondale Specialty Casualty Program ("NAXS"). Our involvement is limited to certain states where Technology was not fully licensed. The agreement also provides that we receive a ceding commission of 5% of ceded written premiums.

~~The OPL program was terminated on December 31, 2011, on a run-off basis, and the NAXS program was terminated on October 31, 2012. We recorded $1 and $4 of ceded premiums~~operations for the three and nine months ended September 30, ~~2017, respectively (2016 - $nil~~2018 and ~~$12, respectively).~~2017:

Effective April 1, 2012, the Company, through a subsidiary, entered into a reinsurance agreement with AmTrust's wholly owned subsidiary, AmTrust North America, Inc. ("AmTrust NA"). We indemnify AmTrust NA, on an excess of loss basis, as a result of losses occurring on AmTrust NA's new and renewal policies relating to the lines of business classified as Automobile Liability by AmTrust NA in its annual statement utilizing the specific underwriting guidelines defined in the reinsurance agreement. AmTrust NA shall retain the first $1,000 of loss, per any one policy or per any one loss occurrence. This agreement has a term of one year and automatically renews annually unless terminated pursuant to the terms of the agreement. During the three and nine months ended September 30, 2017, under the terms of this agreement, we have recorded net premiums earned of approximately $351 and $1,182, respectively (2016 - $305 and $745, respectively) and commission expense of $53 and $256, respectively (2016 - $87 and $187, respectively).



	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
	2018			2017			2018			2017
Gross and net premiums written	$	452,795		$	420,019		$	1,518,208		$	1,575,677
Net premiums earned	491,613			451,372			1,472,614			1,492,948
Net loss and LAE	(579,240		)	(364,574		)	(1,275,723		)	(1,080,480		)
Commission expenses	(152,511		)	(138,171		)	(456,861		)	(460,667		)

Collateral provided to AmTrust

a) AmTrust Quota Share Reinsurance Agreement

In order to provide AmTrust's U.S. insurance subsidiaries with credit for reinsurance on their statutory financial statements, AII, as the direct reinsurer of the AmTrust's insurance subsidiaries, has established trust accounts ("Trust Accounts") for their benefit. Maiden Bermuda has agreed to provide appropriate collateral to secure its proportional share under the Reinsurance Agreement of AII's obligations to the AmTrust subsidiaries to whom AII is required to provide collateral. This collateral may be in the form of (a) assets loaned by Maiden Bermuda to AII for deposit into the Trust Accounts, pursuant to a loan agreement between those parties, (b) assets transferred by Maiden Bermuda for deposit into the Trust Accounts, (c) a letter of credit obtained by Maiden Bermuda and delivered to an AmTrust subsidiary on AII's behalf, or (d) premiums withheld by an AmTrust subsidiary at Maiden Bermuda's request in lieu of remitting such premiums to AII. Maiden Bermuda may provide any or a combination of these forms of collateral, provided that the aggregate value thereof equals Maiden Bermuda's proportionate share of its obligations under the Reinsurance Agreement with AII.

Maiden Bermuda satisfied its collateral requirements under the Reinsurance Agreement with AII as follows:

•by lending funds in the amount of $167,975 at September 30, ~~2017~~2018 and December 31, ~~2016~~2017 pursuant to a loan agreement entered into between those parties. Advances under the loan, ~~which were made in three separate tranches of $113,542 (December 18, 2007), $20,193 (April 11, 2008) and $34,240 (June 23, 2008),~~ are secured by promissory notes. ~~The~~Effective December 18, 2017, the maturity date with respect to each advance ~~is ten years from~~shall be the ~~date~~earliest of (i) June 30, 2019, (ii) such time as there are no remaining obligations due to AmTrust under the Reinsurance Agreement in respect of which such advance was ~~made.~~originally made or (iii) such time as AII is no longer required to secure its proportionate share of such obligations. This loan was assigned by AII to AmTrust effective December 31, 2014 and is carried at cost. ~~Interest~~Effective December 18, 2017, interest is payable at a rate equivalent to the Federal Funds Effective Rate ("Fed Funds") plus 200 basis points per annum. Prior to that date, the interest was payable at a rate equivalent to the one-month LIBOR plus 90 basis points per annum; and

•effective December 1, 2008, the Company entered into a Reinsurer Trust Assets Collateral agreement to provide to AII sufficient collateral to secure its proportional share of AII's obligations to the U.S. AmTrust subsidiaries. The amount of the collateral at September 30, ~~2017~~2018 was approximately ~~$3,245,369~~$3,351,365 (December 31, ~~2016~~2017 - ~~$2,766,032)~~$3,328,757) and the accrued interest was ~~$21,288~~$22,391 (December 31, ~~2016~~2017 - ~~$20,420)~~$20,830). Please refer to "Note 4. (e) Investments" for additional information.

b) European Hospital Liability Quota Share

AEL requested that Maiden Bermuda provide collateral to secure its proportional share under the European Hospital Liability Quota Share agreement. Please refer to "Note 4. (e) Investments" for additional information.

Brokerage Agreement

Effective July 1, 2007, the Company entered into a reinsurance brokerage agreement with AII Reinsurance Broker Ltd. ("AIIB"), a wholly owned subsidiary of AmTrust. Pursuant to the brokerage agreement, AIIB provides brokerage services relating to the Reinsurance Agreement and the European Hospital Liability Quota Share agreement for a fee equal to 1.25% of the premium assumed. ~~The brokerage fee is payable in consideration of AIIB's brokerage services.~~ AIIB is not the Company's exclusive broker. The agreement may be terminated upon 30 days written notice by either party. Maiden Bermuda recorded approximately ~~$5,642~~$6,145 and ~~$18,662~~$18,408 of reinsurance brokerage expense for the three and nine months ended September 30, ~~2017,~~2018, respectively ~~(2016~~(2017 - ~~$6,652~~$5,642 and ~~$18,330,~~$18,662, respectively) and deferred reinsurance brokerage of $15,297 at September 30, ~~2017 of $15,476~~2018 (December 31, ~~2016~~2017 - ~~$14,395)~~$14,741) as a result of this agreement.

The Company also paid brokerage fees to AmTrust's subsidiary, AmTrust North America, of $54 and $55 for the three and nine months ended September 30, 2017 (2016 - $41 and $42), respectively, for acting as insurance intermediary in relation to certain insurance placements.

~~MAIDEN HOLDINGS, LTD.~~

~~NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)~~

~~(in thousands of U.S. dollars, except share and per share data)~~

~~8. Related Party Transactions (continued)~~

Asset Management Agreement

Effective 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 has agreed to provide investment management services to the Company. Effective January 1, 2018, AIIM provides investment management services for a quarterly fee of ~~0.0375% if~~0.02125% of the average value of the ~~account for~~account. Prior to that date, the ~~previous calendar quarter is greater than $1 billion.~~fee was payable at a rate of 0.0375%. The agreement may be terminated upon 30 days written notice by either party. The Company recorded approximately ~~$1,927~~$1,055 and ~~$5,586~~$3,137 of investment management fees for the three and nine months ended September 30, ~~2017,~~2018, respectively ~~(2016~~(2017 - ~~$1,780~~$1,927 and ~~$5,122,~~$5,586, respectively) as a result of this agreement.

MAIDEN HOLDINGS, LTD.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

(in thousands of U.S. dollars, except share and per share data)

10. Related Party Transactions (continued)

Other

The Company entered into time sharing agreements for the lease of aircraft owned by AmTrust Underwriters, Inc. ("AUI"), a wholly owned subsidiary of AmTrust, and by AmTrust on March 1, 2011 and November 5, 2014, respectively. The agreements automatically renew for successive one-year terms unless terminated in accordance with the provisions of the agreements. Pursuant to the agreements, the Company will reimburse AUI and AmTrust for actual expenses incurred as allowed by Federal Aviation Regulations. For the three and nine months ended September 30, ~~2017,~~2018, the Company recorded an expense of ~~$nil~~$21 and ~~$39,~~$54, respectively ~~(2016~~(2017 - ~~$22~~$0 and ~~$61,~~$39, respectively) for the use of the aircraft.

~~NGHC~~

~~The following describes transactions between the Company and NGHC and its subsidiaries:~~

NGHC Quota Share

Maiden Bermuda, effective March 1, 2010, had a 50% participation in the NGHC Quota Share, by which it received 25% of net premiums of the personal lines automobile business and assumed 25% of the related net losses. On August 1, 2013, the Company received notice from NGHC of the termination of the NGHC Quota Share effective on that date. The Company and NGHC mutually agreed that the termination is on a run-off basis.

~~Other~~

Effective April 1, 2015, Maiden US renewed the Medical Excess of Loss reinsurance agreement with wholly owned subsidiaries of NGHC, Distributors Insurance Company PCC, AIBD Insurance Company IC and Professional Services Captive Corporation IC. Pursuant to this agreement, Maiden US indemnifies on an excess of loss basis, for the amounts of net loss, paid from April 1, 2015 through March 31, 2016. Maiden US was liable for 100% of the net loss for each covered person per agreement year in excess of the $1,175 retention (each covered person per agreement year). Maiden US' liability did not exceed $8,825 per covered person per agreement year. In addition, Maiden US continued to indemnify extra contractual obligations with a maximum liability of $2,000. This agreement terminated on March 31, 2016 and Maiden US was relieved of all liability hereunder for losses incurred or paid subsequent to such termination date. Under these agreements, Maiden US recorded no premiums earned for the three and nine months ended September 30, 2017 (2016 - $nil and $157, respectively).

Effective May 1, 2015, Maiden US entered into an agreement with several NGHC subsidiaries for medical excess of loss programs. This program covers employer aggregate and traditional specific medical stop loss policies underwritten by the Managing General Agent that they support. The NGHC companies covered under the treaty are Integon Indemnity Insurance Company, Integon National Insurance Company and National Health Insurance Company. This agreement expired on April 30, 2017. Upon expiration of this agreement, coverage remains in full force and effect on all assumed liability for policies in force on the date of expiration until expiration, cancellation or next anniversary date of such subject policies.

The treaty limit of the aggregate medical stop loss is subject to a limit of $4,000 in excess of $1,000 any one insured person. The treaty limit on the traditional specific medical stop loss Layer 1 is subject to a limit of $1,000 in excess of $1,000 any one insured person; Layer 2 is subject to a limit of $3,000 in excess of $2,000 any one insured person and Layer 3 is subject to a limit of $5,000 in excess of $5,000. In addition to these limits, the Company shall cover extra contractual obligations arising under this agreement with a maximum liability of $2,000. Under these agreements, Maiden US recorded $163 and $403 of premiums earned for the three and nine months ended September 30, 2017, respectively (2016 - $136 and $295, respectively).

~~MAIDEN HOLDINGS, LTD.~~

~~NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)~~

~~(in thousands of U.S. dollars, except share and per share data)~~

9.11. Commitments and Contingencies


a)	Concentrations of Credit Risk

At September 30, ~~2017~~2018 and December 31, ~~2016,~~2017, the Company’s assets where significant concentrations of credit risk may exist include investments, cash and cash equivalents, loan to related party, reinsurance balances receivable and reinsurance recoverable on unpaid ~~losses.~~losses (presented as part of other assets in the Condensed Consolidated Balance Sheet).

The ~~reinsurers with the three largest balances accounted for 44.7%, 15.7% and 14.6%, respectively, of the~~ Company's reinsurance recoverable on unpaid losses balance at September 30, ~~2017~~2018 was $1,811 (December 31, ~~2016 – 54.8%, 31.6% and 2.9%, respectively)~~2017 - $24,883). At September 30, ~~2017, 98.7%~~2018, 94.6% (December 31, ~~2016~~2017 - ~~97.2%~~99.5%) of the reinsurance recoverable on unpaid losses was due from reinsurers and retrocessionaires with credit ratings from A.M Best of AA+ or ~~better, and 1.3% (December 31, 2016 - 2.8%) of the reinsurance recoverable on unpaid losses was due from reinsurers with ratings of B++ or lower.~~better. At September 30, ~~2017, 89.1% (December 31, 2016 - 98.6%) of reinsurance recoverable on unpaid losses, due from reinsurers with ratings of B++ or lower, were collateralized.~~

~~At September 30, 2017~~2018 and December 31, ~~2016,~~2017, the Company had no valuation allowance against reinsurance recoverable on unpaid losses.

The Company manages concentration of credit risk in the investment portfolio through issuer and sector exposure limitations. The Company believes it bears minimal credit risk in its cash on deposit. The Company also monitors the credit risk related to the loan to related party and its reinsurance balances ~~receivable, within which the largest balance is due from AmTrust.~~receivable. To mitigate credit risk, we generally have a contractual right of offset thereby allowing us to settle claims net of any premiums or loan receivable. The Company believes these balances as at September 30, 2018 will be fully collectible.


b)	Concentrations of Revenue

During the three and nine months ended September 30, ~~2017,~~2018, our gross premiums written from AmTrust accounted for ~~$420,019~~$452,795 or ~~66.6%~~93.5% and ~~$1,575,677~~$1,518,208 or ~~69.7%~~93.2%, respectively, of our total gross premiums written ~~(2016~~(2017 – ~~$520,104~~$420,019 or ~~73.6%~~94.8% and ~~$1,591,902~~$1,575,677 or ~~70.5%~~95.5%, respectively).


c)	Dividends Declared

On August ~~3, 2017,~~8, 2018, the Company's Board of Directors authorized the following quarterly dividend:

as the effect of including potential dilutive shares would be anti-dilutive.

Key Financial Measures

In addition to the Condensed Consolidated Balance Sheets and Condensed Consolidated Statements of Income and Comprehensive Income, management uses certain key financial measures, some of which are non-GAAP measures, to evaluate its financial performance and the overall growth in value generated for the Company’s common shareholders. Management believes that these measures, which may be defined differently by other companies, ~~better~~ explain the Company’s results in a manner that allows for a more complete understanding of the underlying trends in the Company’s business. The non-GAAP measures should not be viewed as a substitute for those determined in accordance with U.S. GAAP. These key financial measures are:

Non-GAAP operating ~~earnings~~loss and non-GAAP diluted operating ~~earnings~~loss per common ~~share: management~~share: Management believes that the use of non-GAAP operating ~~earnings~~loss and non-GAAP diluted ~~non-GAAP~~ operating ~~earnings~~loss per share enables investors and other users of the Company’s financial information to analyze its performance in a manner similar to how management analyzes performance. Management also believes that these measures generally follow industry practice and, therefore, allow the users of financial information to compare the Company’s performance with its industry peer group, and that the equity analysts and certain rating agencies which follow the Company, and the insurance industry as a whole, generally exclude these items from their analyses for the same reasons. Non-GAAP operating ~~earnings~~loss should not be viewed as a substitute for U.S. GAAP net income.

Non-GAAP operating ~~earnings~~loss is an internal performance measure used by management as these measures focus on the underlying fundamentals of the Company's operations by excluding, on a recurring basis: (1) net realized gains or losses on investment; (2) total other-than-temporary impairment losses; (3) foreign exchange gains or losses; ~~(3) amortization of intangible assets;~~and (4) loss and related activity from our ~~run-off operations comprised of our former segment~~ NGHC Quota Share ~~and our divested excess and surplus ("E&S") business; (5)~~run-off operations. It also excludes on a non-recurring basis: (1) in 2017, accelerated amortization of ~~debt~~senior note issuance ~~costs;~~cost; and ~~(6) non-cash deferred tax expenses.~~ (2) in 2018, loss from discontinued operations, net of income tax.

We exclude net realized gains or losses on investment, total other-than-temporary impairment losses and foreign exchange gains or losses as we believe these are influenced by market opportunities and other factors. We do not believe ~~amortization of intangible assets and~~ loss and related activity from our NGHC Quota Share run-off operations, accelerated amortization of senior note issuance cost and loss from discontinued operations are representative of our ongoing and future business. We believe all of these amounts are largely independent of our business and future underwriting process and including them distorts the analysis of trends in our operations.

Underwriting ~~(loss) income~~loss is a non-GAAP measure and is calculated as net premiums earned plus other insurance revenue less net loss and LAE, commission and other acquisition expenses and general and administrative expenses directly related to underwriting

activities. Management believes that this measure is important in evaluating the underwriting performance of the Company and its segments. This measure is also a useful tool to measure the profitability of the Company separately from the investment results and is also a widely used performance indicator in the insurance industry. A reconciliation of the Company's underwriting results can be found in the Company's Condensed Consolidated Financial Statements. Please refer to "Notes to Condensed Consolidated Financial Statements (unaudited) Note 3. Segment Reporting" for further details.

Non-GAAPoperating ~~(loss) earnings~~loss and non-GAAP diluted operating ~~(loss) earnings~~loss per common share can be reconciled to the nearest U.S. GAAP financial measure as follows:

For the Three Months Ended September 30, 2017 2016
($ in thousands except per share data)
Net (loss) income attributable to Maiden common shareholders $ (63,596 ) $ 31,829
Add (subtract):
Net realized gains on investment (5,859 ) (1,900 )
Foreign exchange losses (gains) 3,550
(687 )
Amortization of intangible assets 533
616
Divested E&S business and NGHC run-off 8,667
47
Non-cash deferred tax expense 291
291
Non-GAAP operating (loss) earnings attributable to Maiden common shareholders $ (56,414 ) $ 30,196

Diluted (loss) earnings per share attributable to Maiden common shareholders $ (0.74 ) $ 0.40
Add (subtract):
Net realized gains on investment (0.07 ) (0.02 )
Foreign exchange losses (gains) 0.04
(0.01 )
Amortization of intangible assets 0.01
0.02
Divested E&S business and NGHC run-off 0.10
—
Non-GAAP diluted operating (loss) earnings per common share
$ (0.66 ) $ 0.39

For the Nine Months Ended September 30, 2017 2016
($ in thousands except per share data)
Net (loss) income attributable to Maiden common shareholders $ (65,465 ) $ 89,955
Add (subtract):
Net realized gains on investment (8,316 ) (4,511 )
Foreign exchange losses (gains) 12,193
(6,474 )
Amortization of intangible assets 1,599
1,846
Divested E&S business and NGHC run-off 10,083
2,942
Accelerated amortization of senior note issuance cost 2,809
2,345
Non-cash deferred tax expense 871
871
Non-GAAP operating (loss) earnings attributable to Maiden common shareholders $ (46,226 ) $ 86,974

Diluted (loss) earnings per share attributable to Maiden common shareholders $ (0.76 ) $ 1.15
Add (subtract):
Net realized gains on investment (0.10 ) (0.05 )
Foreign exchange losses (gains) 0.14
(0.08 )
Amortization of intangible assets 0.02
0.02
Divested E&S business and NGHC run-off 0.12
0.03
Accelerated amortization of senior note issuance cost 0.03
0.03
Non-cash deferred tax expense 0.01
0.01
Non-GAAP diluted operating (loss) earnings per common share
$ (0.54 ) $ 1.11



For the Three Months Ended September 30,	2018			2017
	($ in thousands except per share data)
Net loss attributable to Maiden common shareholders	$	(308,839	)	$	(63,596	)
Add (subtract):
Net realized losses (gains) on investment	225			(5,859		)
Total other-than-temporary impairment losses	479			—
Foreign exchange losses	552			3,550
Loss from discontinued operations, net of income tax	71,100			9,908
Loss from divested NGHC Quota Share run-off	1,369			1,838
Non-GAAP operating loss attributable to Maiden common shareholders	$	(235,114	)	$	(54,159	)

Diluted loss per share attributable to Maiden common shareholders	$	(3.72	)	$	(0.74	)
Add (subtract):
Net realized losses (gains) on investment	—			(0.07		)
Total other-than-temporary impairment losses	0.01			—
Foreign exchange losses	0.01			0.04
Loss from discontinued operations, net of income tax	0.85			0.12
Loss from divested NGHC Quota Share run-off	0.02			0.02
Non-GAAP diluted operating loss per common share	$	(2.83	)	$	(0.63	)

For the Nine Months Ended September 30,	2018			2017
	($ in thousands except per share data)
Net loss attributable to Maiden common shareholders	$	(301,025	)	$	(65,465	)
Add (subtract):
Net realized losses (gains) on investment	282			(8,316		)
Total other-than-temporary impairment losses	479			—
Foreign exchange (gains) losses	(1,862		)	12,193
Loss from discontinued operations, net of income tax	44,336			17,060
Loss from divested NGHC Quota Share run-off	1,369			1,838
Accelerated amortization of senior note issuance cost	—			2,809
Non-GAAP operating loss attributable to Maiden common shareholders	$	(256,421	)	$	(39,881	)

Diluted loss per share attributable to Maiden common shareholders	$	(3.62	)	$	(0.76	)
Add (subtract):
Net realized losses (gains) on investment	—			(0.10		)
Total other-than-temporary impairment losses	0.01			—
Foreign exchange (gains) losses	(0.03		)	0.14
Loss from discontinued operations, net of income tax	0.53			0.20
Loss from divested NGHC Quota Share run-off	0.02			0.02
Accelerated amortization of senior note issuance cost	—			0.04
Non-GAAP diluted operating loss per common share	$	(3.09	)	$	(0.46	)

Non-GAAPoperating ~~(loss) earnings~~loss attributable to Maiden common shareholders ~~decreased~~increased by ~~$86.6~~$181.0 million for the three months ended September 30, ~~2017~~2018 compared to the same period in ~~2016.~~2017. This ~~decrease~~ was largely due to ~~$77.7~~an increased underwriting loss of $189.8 million of prior year adverse loss development in both of our key operating segments as well as third quarter catastrophe losses of $20.0 million from Hurricanes Harvey and Irma. The decline in underwriting income during the three months ended September 30, 2018 compared to the same period in 2017 ~~was partially offset~~particularly caused by ~~a $5.2 million increase in net investment income.~~both significantly

higher adverse prior year loss development and reserve strengthening during the period in our AmTrust Reinsurance segment. As a result of these factors, the total loss ratio increased by 34.4 points year-over-year. Please refer to "Results of Operations - Net Loss and Loss Adjustment Expenses" on page 46 for the reasons regarding the changes in the loss ratio.

Non-GAAPoperating ~~(loss) earnings~~loss attributable to Maiden common shareholders ~~decreased~~increased by ~~$133.2~~$216.5 million for the nine months ended September 30, ~~2017~~2018 compared to the same period in ~~2016.~~2017. This ~~decrease~~ was largely due to ~~$150.5~~an increased underwriting loss of $215.7 million ~~of prior year adverse loss development as well as higher initial current year loss ratios~~ during the nine months ended September 30, 2018 compared to the same period in 2017 inparticularly caused by both ~~our operating segments as well as third quarter catastrophe losses of $20.0 million from Hurricanes Harvey~~significantly higher adverse prior year loss development and ~~Irma. The decline in underwriting income~~reserve strengthening during the ~~nine months ended September 30, 2017~~period in our AmTrust Reinsurance segment. As a result of these factors, the total loss ratio increased by 13.8 points year-over-year. This was partially offset by ~~the $16.2 million increase in~~ net investment ~~income.~~income which increased $10.0 million compared to the same period in 2017.

Non-GAAP Operating Return on Average Common Equity ("Non-GAAP Operating ROACE"): Management uses non-GAAP operating return on average common shareholders' equity as a measure of profitability that focuses on the return to common shareholders. It is calculated using non-GAAP operating ~~(loss) earnings~~loss available to common shareholders (as defined above) divided by average common shareholders' equity. Management has set, as a target, a long-term average of 15% non-GAAP Operating ROACE, which management believes provides an attractive return to shareholders for the risk assumed from our business.

Non-GAAP Operating ROACE for the three and nine months ended September 30, ~~2017~~2018 and ~~2016~~2017 was computed as follows:


	For the Three Months Ended September 30,						For the Nine Months Ended September 30,						For the Three Months Ended September 30,						For the Nine Months Ended September 30,
	2017			2016			2017			2016
	($ in thousands)
Non-GAAP operating (loss) earnings attributable to Maiden common shareholders	$	(56,414	)	$	30,196		$	(46,226	)	$	86,974
($ in thousands)													2018			2017			2018			2017
Non-GAAP operating loss attributable to Maiden common shareholders													$	(235,114	)	$	(54,159	)	$	(256,421	)	$	(39,881	)
Opening Maiden common shareholders’ equity	$	1,035,399		$	1,049,714		$	1,045,797		$	867,821		640,742			1,035,399			767,174			1,045,797
Ending Maiden common shareholders’ equity	$	956,027		$	1,240,300		$	956,027		$	1,240,300		307,554			956,027			307,554			956,027
Average Maiden common shareholders’ equity	$	995,713		$	1,091,203		$	1,000,912		$	981,196		474,148			995,713			537,364			1,000,912
Operating ROACE	(22.5		)%	11.0		%	(6.2		)%	11.8		%
Non-GAAP Operating ROACE													(196.7		)%	(21.6		)%	(63.8		)%	(5.3		)%

Item 4. Controls and Procedures

Our management, with the participation and under the supervision of our Chief Executive Officer and Chief Financial Officer, have evaluated the Company's disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)). Disclosure controls and procedures are designed to ensure that information required to be disclosed in reports filed or submitted under the Exchange Act is recorded, processed, summarized and reported within the time periods specified by SEC rules and forms and that such information is accumulated and communicated to management, including our Chief Executive Officer and Chief Financial Officer, to allow for timely decisions regarding required disclosures. Our Chief Executive Officer and Chief Financial Officer have concluded that, as of the end of the period covered by this report, such disclosure controls and procedures were effective. Our management, including our Chief Executive Officer and Chief Financial Officer, does not expect that our disclosure controls and procedures or our internal control over financial reporting will prevent all error and all fraud. A control system, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. Further, the design of a control system must reflect the fact that there are resource constraints, and the benefits of controls must be considered relative to their costs. Because of the inherent limitations in all control systems, no evaluation of controls can provide an absolute assurance that all control issues and instances of fraud, if any, within our Company have been detected.

During the most recent fiscal quarter, there were no changes in the Company's internal controls over financial reporting (as defined in Exchange Act Rule 13a-15(f) and 15d-15(f)) that have materially affected, or are reasonably likely to materially affect, the Company's internal control over financial reporting.

PART II - OTHER INFORMATION

Item 1. Legal Proceedings

See "Part I, Item 1 - Notes to Condensed Consolidated Financial Statements (unaudited) Note 9.11. Commitments and Contingencies" for an update on legal matters. Except as disclosed above, there are no material changes from the legal proceedings previously disclosed in our Annual Report on Form 10-K for the year ended December 31, ~~2016.~~2017.

Item 1A. Risk Factors

Our business is subject to a number of risks, including those identified in Item 1A. of Part I of our Annual Report on Form 10-K for the year ended December 31, ~~2016,~~2017, that could have a material adverse effect on our business, results of operations, financial condition and/or liquidity and that could cause our operating results to vary significantly from period to period. The risks described in our ~~2016~~2017 Form 10-K are not the only risks we face. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial also could have a material adverse effect on our business, results of operations, financial condition and/or liquidity.

There are no material changes from the risk factors previously disclosed in our Annual Report on Form 10-K for the year ended December 31, ~~2016.~~2017 except for the following:

The occurrence of any event, change or other circumstances that could give rise to the termination of the Master Transaction Agreement with Enstar could adversely affect our future business.

There are significant risks and uncertainties associated with the pending sale of substantially all of our U.S. treaty reinsurance operations to Enstar pursuant to the Master Transaction Agreement. The occurrence of certain events, changes or any other circumstances could give rise to the termination of the Master Transaction Agreement and cause the sale not to be completed. For instance, there is no assurance that the parties will receive the necessary state insurance regulatory approvals required to close the transaction. If the parties fail to obtain such approvals or to meet other conditions necessary to complete the sale as set forth in the Master Transaction Agreement, we will not be able to close the transaction and we will not realize the anticipated benefits to our business.

Our proposed transaction with Enstar may present certain risks to our business and operations.

Our operations will be restricted by the terms of the Master Transaction Agreement and the Enstar Master Agreement, which may prevent or delay the pursuit of other strategic corporate or business opportunities and result in our inability to respond effectively and/or timely to competitive pressures and industry developments.

The proposed transaction may disrupt our current business plans and operations.

Our management’s attention may be directed towards the completion of the transaction and diverted away from our day-to-day business operations and the execution of our current business plans.

Current and prospective employees may experience uncertainty about their future roles with us, which might adversely effect our ability to attract and retain employees who generate and service our business.

Uncertainties regarding our business could cause brokers, customers and other counterparties to change existing business relationships which could negatively affect our revenues, earnings and cash flows.

Third-party rating agencies may downgrade or revoke our financial strength or debt ratings in connection with the Master Transaction Agreement and the Enstar Master Agreement.

We may incur significantly higher transaction costs than we currently anticipate, such as legal, financing and accounting fees, and other costs, fees, expenses and charges related to the transaction, whether or not the Master Transaction Agreement and the Enstar Master Agreement are completed.

We could be subject to litigation related to the proposed transaction, which could result in significant costs and expenses.

The Master Transaction Agreement and the Enstar Master Agreement may not be completed, which may have an adverse effect on our stock price to the extent that the current market price reflects assumption that the transaction will be completed, result in negative reactions from our shareholder and other investors, rating agencies, employees, brokers or customers, and adversely affect our future business and financial results.

Item 2. Unregistered Sales of Equity and Use of Proceeds

Items 2. (a) and (b) are not applicable.

2. (c) Share Repurchases

On February 21, 2017, the Company's Board of Directors approved the repurchase of up to $100.0 million of the Company's common shares from time to time at market prices. The table below details the repurchases that were made during the three months ended September 30, ~~2017,~~2018, under the share repurchase authorization:

For the Three Months Ended September 30, 2017 Total number of shares repurchased Average price paid per share Total number of shares purchased as part of publicly announced plans or programs (a) Dollar amount still available under trading plan
($ in thousands)
July 1, 2017 - July 31, 2017 —
$ —
—
$ 100,000
August 1, 2017 - August 31, 2017 1,380,000
$ 7.31
1,380,000
$ 89,914
September 1, 2017 - September 30, 2017 635,700
$ 6.69
635,700
$ 85,662
Total 2,015,700
$ 7.11
2,015,700
$ 85,662



For the Three Months Ended September 30, 2018	Total number of shares repurchased	Average price paid per share		Total number of shares purchased as part of publicly announced plans or programs (a)	Dollar amount still available under trading plan
					($ in thousands)
July 1, 2018 - July 31, 2018	—	—		—	$	74,924
August 1, 2018 - August 31, 2018	—	—		—	$	74,924
September 1, 2018 - September 30, 2018	205,000	$	3.31	205,000	$	74,245
Total	205,000	$	3.31	205,000	$	74,245

Subsequent to the three months ended September 30, ~~2017~~2018 and through the period ended November 9, ~~2017,~~2018, the Company did not repurchase any additional common shares.

Item 3. Defaults Upon Senior Securities

None.

Item 4. Mine Safety Disclosures

Not applicable.

Item 5. Other Information

Executive Ownership and Sales

From time to time, some of the Company’s executives may determine that it is advisable to diversify their investments for personal financial planning reasons, or may seek liquidity for other reasons, and may sell common shares of the Company in the open market, in private transactions or to the Company. To effect such sales, some of the Company’s executives have entered into, and may in the future enter into, trading plans designed to comply with the Company’s Insider Trading and Outside Investments Policy and the provisions of Rule 10b5-1 under the Securities Exchange Act of 1934. The trading plans will not reduce any of the executives’ ownership of the Company’s shares below the applicable executive stock ownership guidelines. The Company does not undertake any obligation to report Rule 10b5-1 plans that may be adopted by any employee or director of the Company in the future, or to report any modifications or termination of any publicly announced plan.

Compensatory Arrangements of Certain Officers

The Company extended the term of the employment agreements for each of Lawrence F. Metz and Patrick J. Haveron, which now expire on November 1, 2021.

Item 6. Exhibits.



Exhibit No.		Description
10.1		Endorsement No. 5 to the Amended and Restated Quota Share Reinsurance Contract by and between Maiden Reinsurance Ltd. and AmTrust International Insurance, Ltd. incorporated by reference to Exhibit 10.15 to the Company’s Annual Report on Form 10-K for the period ended December 31, 2008, filed with the SEC on March 31, 2009.
10.2		CEO Separation Agreement
10.3		CFO Separation Agreement
31.1		Section 302 Certification of CEO
31.2		Section 302 Certification of CFO
32.1		Section 906 Certification of CEO
32.2		Section 906 Certification of CFO
101.1		The following materials from Maiden Holdings, Ltd. Quarterly Report on Form 10-Q, formatted in XBRL (eXtensive Business Reporting Language): (i) the unaudited Condensed Consolidated Balance Sheets, (ii) the unaudited Condensed Consolidated Statements of Income, (iii) the unaudited Condensed Consolidated Statements of Comprehensive Income, (iv) the unaudited Condensed Consolidated Statements of Changes in Shareholders' Equity, (v) the unaudited Condensed Consolidated Statements of Cash Flows, and (vi) Notes to unaudited Condensed Consolidated Financial Statements.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.



	MAIDEN HOLDINGS, LTD.
	By:
November 9, ~~2017~~2018		/s/ ~~Arturo M. Raschbaum~~Lawrence F. Metz
		~~Arturo M. Raschbaum~~Lawrence F. Metz President and Chief Executive Officer

		/s/ ~~Karen L. Schmitt~~Patrick J. Haveron
		~~Karen L. Schmitt~~Patrick J. Haveron Chief Financial Officer

		/s/ Michael J. Tait
		Michael J. Tait Chief Accounting Officer

6964



Bermuda (State or other jurisdiction of incorporation or organization)	98-0570192 (IRS Employer Identification No.)

~~131 Front Street, Hamilton,~~94 Pitts Bay Road, Pembroke, Bermuda (Address of principal executive offices)	~~HM12~~HM08 (Zip Code)



Large accelerated filer x		Accelerated filer o
Non-accelerated filer o		(Do not check if a smaller reporting company)
		Smaller reporting company o
		Emerging growth company o

INDEX

		Page
PART I - Financial Information
Item 1.	Financial Statements

	Condensed Consolidated Balance Sheets as of September 30, ~~2017 (unaudited)~~2018 and December 31, ~~2016 (audited)~~2017 (unaudited)	3

	Condensed Consolidated Statements of Income for the Three and Nine Months Ended September 30, ~~2017~~2018 and ~~2016~~2017 (unaudited)	4

	Condensed Consolidated Statements of Comprehensive Income for the Three and Nine Months Ended September 30, ~~2017~~2018 and ~~2016~~2017 (unaudited)	5

	Condensed Consolidated Statements of Changes in Shareholders' Equity for the Nine Months Ended September 30, ~~2017~~2018 and ~~2016~~2017 (unaudited)	6

	Condensed Consolidated Statements of Cash Flows for the Nine Months Ended September 30, ~~2017~~2018 and ~~2016~~2017 (unaudited)	7

	Notes to Condensed Consolidated Financial Statements (unaudited)	8

Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	3536

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	6460

Item 4.	Controls and Procedures	6661

PART II - Other Information

Item 1.	Legal Proceedings	6761

Item 1A.	Risk Factors	6761

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	6762

Item 3.	Defaults Upon Senior Securities	6762

Item 4.	Mine Safety Disclosures	6762

Item 5.	Other Information	6762

Item 6.	Exhibits	6863

	Signatures	6964


	September 30, 2017			December 31, 2016
	(Unaudited)			(Audited)			September 30, 2018			December 31, 2017
ASSETS
Investments:
Fixed maturities, available-for-sale, at fair value (amortized cost 2017: $3,844,996; 2016: $4,005,642)	$	3,884,587		$	3,971,666
Fixed maturities, held to maturity, at amortized cost (fair value 2017: $1,152,106; 2016: $766,135)	1,118,368			752,212
Other investments, at fair value (cost 2017: $5,640; 2016: $10,057)	7,041			13,060
Fixed maturities, available-for-sale, at fair value (amortized cost 2018: $2,867,251; 2017: $2,699,297)							$	2,781,553		$	2,707,516
Fixed maturities, held-to-maturity, at amortized cost (fair value 2018: $1,019,741; 2017: $1,125,626)							1,032,885			1,097,801
Other investments, at fair value							22,586			6,600
Total investments	5,009,996			4,736,938			3,837,024			3,811,917
Cash and cash equivalents	182,677			45,747			94,578			54,470
Restricted cash and cash equivalents	131,598			103,788			169,996			94,905
Accrued investment income	35,547			36,517			29,658			28,798
Reinsurance balances receivable, net (includes $150,985 and $132,056 from related parties in 2017 and 2016, respectively)	479,472			410,166
Reinsurance recoverable on unpaid losses (includes $2,374 and $5,085 from related parties in 2017 and 2016, respectively)	140,629			99,936
Reinsurance balances receivable, net (includes $125,046 and $94,597 from related parties in 2018 and 2017, respectively)							161,436			72,494
Loan to related party	167,975			167,975			167,975			167,975
Deferred commission and other acquisition expenses (includes $371,733 and $339,172 from related parties in 2017 and 2016, respectively)	469,617			424,605
Goodwill and intangible assets, net	76,116			77,715
Deferred commission and other acquisition expenses (includes $396,799 and $379,395 from related parties in 2018 and 2017, respectively)							419,265			380,204
Other assets	145,470			148,912			41,083			131,608
Assets held for sale							1,615,486			1,901,818
Total assets	$	6,839,097		$	6,252,299		$	6,536,501		$	6,644,189
LIABILITIES
Reserve for loss and loss adjustment expenses (includes $2,131,851 and $1,776,784 from related parties in 2017 and 2016, respectively)	$	3,365,011		$	2,896,496
Unearned premiums (includes $1,238,085 and $1,152,484 from related parties in 2017 and 2016, respectively)	1,601,069			1,475,506
Reserve for loss and loss adjustment expenses (includes $2,749,601 and $2,337,096 from related parties in 2018 and 2017, respectively)							$	2,851,685		$	2,386,722
Unearned premiums (includes $1,223,736 and $1,170,397 from related parties in 2018 and 2017, respectively)							1,298,933			1,230,882
Accrued expenses and other liabilities	175,540			161,334			18,460			90,069
Liability for investments purchased	21,658			6,402
Senior notes - principal amount	262,500			362,500			262,500			262,500
Less: unamortized debt issuance costs	8,070			11,091			7,860			8,018
Senior notes, net	254,430			351,409			254,640			254,482
Liabilities held for sale							1,339,618			1,449,408
Total liabilities	5,417,708			4,891,147			5,763,336			5,411,563
Commitments and Contingencies
EQUITY
Preference shares	465,000			315,000			465,000			465,000
Common shares ($0.01 par value; 87,728,554 and 87,321,012 shares issued in 2017 and 2016, respectively; 84,624,829 and 86,271,109 shares outstanding in 2017 and 2016, respectively)	877			873
Common shares ($0.01 par value; 87,932,287 and 87,730,054 shares issued in 2018 and 2017, respectively; 82,942,737 and 82,974,895 shares outstanding in 2018 and 2017, respectively)							879			877
Additional paid-in capital	747,464			749,256			749,214			748,113
Accumulated other comprehensive income	46,079			14,997
Retained earnings	181,510			285,662
Treasury shares, at cost (3,103,725 and 1,049,903 shares in 2017 and 2016, respectively)	(19,903		)	(4,991		)
Accumulated other comprehensive (loss) income							(116,369		)	13,354
(Accumulated deficit) retained earnings							(294,656		)	35,472
Treasury shares, at cost (4,989,550 and 4,755,159 shares in 2018 and 2017, respectively)							(31,514		)	(30,642		)
Total Maiden shareholders’ equity	1,421,027			1,360,797			772,554			1,232,174
Noncontrolling interests in subsidiaries	362			355			611			452
Total equity	1,421,389			1,361,152			773,165			1,232,626
Total liabilities and equity	$	6,839,097		$	6,252,299		$	6,536,501		$	6,644,189


	For the Three Months Ended September 30,						For the Nine Months Ended September 30,						For the Three Months Ended September 30,						For the Nine Months Ended September 30,
	2017			2016			2017			2016			2018			2017			2018			2017
Revenues
Gross premiums written	$	630,972		$	706,854		$	2,259,597		$	2,259,290		$	484,494		$	443,001		$	1,629,347		$	1,650,762
Net premiums written	$	617,330		$	690,653		$	2,201,950		$	2,133,911		$	482,806		$	432,677		$	1,626,485		$	1,603,414
Change in unearned premiums	36,536			7,625			(127,475		)	(182,060		)	37,271			24,601			(85,207		)	(90,977		)
Net premiums earned	653,866			698,278			2,074,475			1,951,851			520,077			457,278			1,541,278			1,512,437
Other insurance revenue	2,488			2,345			7,816			8,696			1,870			2,488			7,629			7,816
Net investment income	40,823			35,666			123,492			107,291			34,419			30,950			101,548			91,597
Net realized gains on investment	5,859			1,900			8,316			4,511
Net realized (losses) gains on investment													(225		)	5,859			(282		)	8,316
Total other-than-temporary impairment losses													(479		)	—			(479		)	—
Total revenues	703,036			738,189			2,214,099			2,072,349			555,662			496,575			1,649,694			1,620,166
Expenses
Net loss and loss adjustment expenses	535,968			466,751			1,545,157			1,297,361			600,296			370,847			1,323,503			1,090,608
Commission and other acquisition expenses	193,462			206,706			625,530			587,501			167,618			145,352			497,026			487,771
General and administrative expenses	19,492			16,952			52,252			49,738			18,936			15,439			48,343			38,161
Interest and amortization expenses	4,829			6,856			18,430			21,314			4,829			4,829			14,487			18,430
Accelerated amortization of senior note issuance cost	—			—			2,809			2,345			—			—			—			2,809
Amortization of intangible assets	533			616			1,599			1,846
Foreign exchange losses (gains)	3,550			(687		)	12,193			(6,474		)	552			3,550			(1,862		)	12,193
Total expenses	757,834			697,194			2,257,970			1,953,631			792,231			540,017			1,881,497			1,649,972
(Loss) income before income taxes	(54,798		)	40,995			(43,871		)	118,718
Less: income tax expense	256			199			1,017			1,206
Net (loss) income	(55,054		)	40,796			(44,888		)	117,512
Add: net loss attributable to noncontrolling interests	3			56			34			166
Net (loss) income attributable to Maiden	(55,051		)	40,852			(44,854		)	117,678
Loss from continuing operations before income taxes													(236,569		)	(43,442		)	(231,803		)	(29,806		)
Less: income tax (benefit) expense													(7,437		)	1,704			(930		)	(1,978		)
Net loss from continuing operations													(229,132		)	(45,146		)	(230,873		)	(27,828		)
Loss from discontinued operations, net of income tax													(71,100		)	(9,908		)	(44,336		)	(17,060		)
Net loss													(300,232		)	(55,054		)	(275,209		)	(44,888		)
Add: net (income) loss from continuing operations attributable to noncontrolling interests													(62		)	3			(180		)	34
Net loss attributable to Maiden													(300,294		)	(55,051		)	(275,389		)	(44,854		)
Dividends on preference shares	(8,545		)	(9,023		)	(20,611		)	(27,723		)	(8,545		)	(8,545		)	(25,636		)	(20,611		)
Net (loss) income attributable to Maiden common shareholders	$	(63,596	)	$	31,829		$	(65,465	)	$	89,955
Basic (loss) earnings per share attributable to Maiden common shareholders	$	(0.74	)	$	0.42		$	(0.76	)	$	1.20
Diluted (loss) earnings per share attributable to Maiden common shareholders	$	(0.74	)	$	0.40		$	(0.76	)	$	1.15
Net loss attributable to Maiden common shareholders													$	(308,839	)	$	(63,596	)	$	(301,025	)	$	(65,465	)
Basic and diluted loss from continuing operations per share attributable to Maiden common shareholders													$	(2.86	)	$	(0.62	)	$	(3.09	)	$	(0.56	)
Basic and diluted loss from discontinued operations per share attributable to Maiden common shareholders													$	(0.86	)	$	(0.12	)	$	(0.53	)	$	(0.20	)
Basic and diluted loss per share attributable to Maiden common shareholders													$	(3.72	)	$	(0.74	)	$	(3.62	)	$	(0.76	)
Dividends declared per common share	$	0.15		$	0.14		$	0.45		$	0.42		$	0.05		$	0.15		$	0.35		$	0.45
Weighted average number of common shares - basic	85,859,201			75,993,451			86,256,481			74,625,839
Adjusted weighted average number of common shares and assumed conversions - diluted	85,859,201			86,150,951			86,256,481			86,018,019
Weighted average number of common shares - basic and diluted													83,089,172			85,859,201			83,085,441			86,256,481



x	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934



o	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934



For the Three Months Ended September 30, 2017	Diversified Reinsurance			AmTrust Reinsurance			Other			Total
Gross premiums written	$	210,953		$	420,019		$	—		$	630,972
Net premiums written	$	207,137		$	410,193		$	—		$	617,330
Net premiums earned	$	217,513		$	436,353		$	—		$	653,866
Other insurance revenue	2,488			—			—			2,488
Net loss and loss adjustment expense ("loss and LAE")	(172,273		)	(355,030		)	(8,665		)	(535,968		)
Commission and other acquisition expenses	(54,810		)	(138,650		)	(2		)	(193,462		)
General and administrative expenses	(8,595		)	(771		)	—			(9,366		)
Underwriting loss	$	(15,677	)	$	(58,098	)	$	(8,667	)	(82,442		)
Reconciliation to net loss
Net investment income and net realized gains on investment										46,682
Interest and amortization expenses										(4,829		)
Amortization of intangible assets										(533		)
Foreign exchange losses										(3,550		)
Other general and administrative expenses										(10,126		)
Income tax expense										(256		)
Net loss										$	(55,054	)

Net loss and LAE ratio⁽¹⁾	78.3		%	81.4		%				81.6		%
Commission and other acquisition expense ratio⁽²⁾	24.9		%	31.7		%				29.5		%
General and administrative expense ratio⁽³⁾	3.9		%	0.2		%				3.0		%
Expense ratio⁽⁴⁾	28.8		%	31.9		%				32.5		%
Combined ratio⁽⁵⁾	107.1		%	113.3		%				114.1		%


(1)	Calculated by dividing net loss and LAE by the sum of net premiums earned and other insurance revenue.


(2)	Calculated by dividing commission and other acquisition expenses by the sum of net premiums earned and other insurance revenue.


(3)	Calculated by dividing general and administrative expenses by the sum of net premiums earned and other insurance revenue.


(4)	Calculated by adding together the commission and other acquisition expense ratio and general and administrative expense ratio.


(5)	Calculated by adding together net loss and LAE ratio and the expense ratio.



September 30, 2017	Diversified Reinsurance		AmTrust Reinsurance		Total
Total assets - reportable segments	$	1,898,036	$	4,362,008	$	6,260,044
Corporate assets	—		—		579,053
Total Assets	$	1,898,036	$	4,362,008	$	6,839,097

December 31, 2016	Diversified Reinsurance		AmTrust Reinsurance		Total
Total assets - reportable segments	$	1,787,320	$	3,900,067	$	5,687,387
Corporate assets	—		—		564,912
Total Assets	$	1,787,320	$	3,900,067	$	6,252,299



September 30, 2018	Original or amortized cost		Gross unrealized gains		Gross unrealized losses			Fair value
AFS fixed maturities:
U.S. treasury bonds	$	125	$	—	$	(1	)	$	124
U.S. agency bonds – mortgage-backed	1,484,434		830		(58,068		)	1,427,196
U.S. agency bonds – other	24,870		—		(1,180		)	23,690
Non-U.S. government and supranational bonds	22,550		122		(1,827		)	20,845
Asset-backed securities	226,652		552		(2,000		)	225,204
Corporate bonds	1,108,620		8,834		(32,960		)	1,084,494
Total AFS fixed maturities	2,867,251		10,338		(96,036		)	2,781,553
Held-to-maturity ("HTM") fixed maturities:
Corporate bonds	974,947		6,103		(18,190		)	962,860
Municipal bonds	57,938		—		(1,057		)	56,881
Total HTM fixed maturities	1,032,885		6,103		(19,247		)	1,019,741
Total fixed maturity investments	$	3,900,136	$	16,441	$	(115,283	)	$	3,801,294


For the Three Months Ended September 30,	2017				2016				2018				2017
	Total		% of Total		Total		% of Total
Net premiums written									Total		% of Total		Total			% of Total
Diversified Reinsurance
Property	$	37,962	6.2	%	$	30,606	4.4	%
International									$	31,291	6.5	%	$	22,503		5.2	%
Casualty	129,726		21.0	%	115,360		16.7	%	—		—	%	(19		)	—	%
Accident and Health	16,946		2.7	%	14,845		2.2	%
International	22,503		3.7	%	18,281		2.6	%
Total Diversified Reinsurance	207,137		33.6	%	179,092		25.9	%	31,291		6.5	%	22,484			5.2	%
AmTrust Reinsurance
Small Commercial Business	295,499		47.9	%	314,677		45.6	%	232,163		48.1	%	295,499			68.3	%
Specialty Program	63,816		10.3	%	98,895		14.3	%	94,077		19.5	%	63,816			14.7	%
Specialty Risk and Extended Warranty	50,878		8.2	%	97,989		14.2	%	125,275		25.9	%	50,878			11.8	%
Total AmTrust Reinsurance	410,193		66.4	%	511,561		74.1	%	451,515		93.5	%	410,193			94.8	%
Total Net Premiums Written	$	617,330	100.0	%	$	690,653	100.0	%	$	482,806	100.0	%	$	432,677		100.0	%


For the Nine Months Ended September 30,	2017				2016				2018				2017
	Total		% of Total		Total		% of Total
Net premiums written									Total		% of Total		Total			% of Total
Diversified Reinsurance
Property	$	132,398	6.0	%	$	123,991	5.8	%
International									$	109,238	6.7	%	$	73,475		4.6	%
Casualty	391,503		17.8	%	365,332		17.1	%	41		—	%	(41		)	—	%
Accident and Health	74,504		3.4	%	68,140		3.2	%
International	73,475		3.3	%	69,059		3.2	%
Total Diversified Reinsurance	671,880		30.5	%	626,522		29.3	%	109,279		6.7	%	73,434			4.6	%
AmTrust Reinsurance
Small Commercial Business	1,028,905		46.7	%	983,601		46.1	%	879,403		54.1	%	1,028,905			64.2	%
Specialty Program	255,767		11.6	%	268,193		12.6	%	286,404		17.6	%	255,767			15.9	%
Specialty Risk and Extended Warranty	245,308		11.2	%	255,595		12.0	%	351,399		21.6	%	245,308			15.3	%
Total AmTrust Reinsurance	1,529,980		69.5	%	1,507,389		70.7	%	1,517,206		93.3	%	1,529,980			95.4	%
Other	90		—	%	—		—	%
Total Net Premiums Written	$	2,201,950	100.0	%	$	2,133,911	100.0	%	$	1,626,485	100.0	%	$	1,603,414		100.0	%



	AFS fixed maturities				HTM fixed maturities
September 30, 2018	Amortized cost		Fair value		Amortized cost		Fair value
Maturity
Due in one year or less	$	3,873	$	3,522	$	9,297	$	9,289
Due after one year through five years	596,895		583,069		371,750		372,294
Due after five years through ten years	555,397		542,562		651,838		638,158
	1,156,165		1,129,153		1,032,885		1,019,741
U.S. agency bonds – mortgage-backed	1,484,434		1,427,196		—		—
Asset-backed securities	226,652		225,204		—		—
Total fixed maturities	$	2,867,251	$	2,781,553	$	1,032,885	$	1,019,741



	Less than 12 Months					12 Months or More					Total
September 30, 2018	Fair value		Unrealized losses			Fair value		Unrealized losses			Fair value		Unrealized losses
Fixed maturities
U.S. treasury bonds	$	124	$	(1	)	$	—	$	—		$	124	$	(1	)
U.S. agency bonds – mortgage-backed	831,457		(25,160		)	595,740		(32,908		)	1,427,197		(58,068		)
U.S. agency bonds – other	23,689		(1,180		)	—		—			23,689		(1,180		)
Non–U.S. government and supranational bonds	6,637		(148		)	14,209		(1,679		)	20,846		(1,827		)
Asset-backed securities	221,300		(1,896		)	3,904		(104		)	225,204		(2,000		)
Corporate bonds	1,793,528		(31,031		)	253,825		(20,119		)	2,047,353		(51,150		)
Municipal bonds	56,882		(1,057		)	—		—			56,882		(1,057		)
Total temporarily impaired fixed maturities	$	2,933,617	$	(60,473	)	$	867,678	$	(54,810	)	$	3,801,295	$	(115,283	)



Ratings⁽¹⁾ at September 30, 2017	Amortized cost		Fair value		% of Total fair value
U.S. treasury bonds	$	5,194	$	5,336	0.1	%
U.S. agency bonds	2,004,645		2,006,402		39.8	%
AAA	169,514		173,589		3.4	%
AA+, AA, AA-	238,268		244,507		4.9	%
A+, A, A-	1,395,001		1,421,504		28.3	%
BBB+, BBB, BBB-	1,093,491		1,125,119		22.3	%
BB+ or lower	57,251		60,236		1.2	%
Total fixed maturities	$	4,963,364	$	5,036,693	100.0	%



Ratings⁽¹⁾ at September 30, 2018	Amortized cost		Fair value		% of Total fair value
U.S. treasury bonds	$	125	$	124	—	%
U.S. agency bonds	1,509,304		1,450,886		38.2	%
AAA	166,512		163,099		4.3	%
AA+, AA, AA-	174,111		169,207		4.4	%
A+, A, A-	1,136,634		1,113,761		29.3	%
BBB+, BBB, BBB-	851,348		839,940		22.1	%
BB+ or lower	62,102		64,277		1.7	%
Total fixed maturities	$	3,900,136	$	3,801,294	100.0	%


Ratings⁽¹⁾ at December 31, 2016	Amortized cost		Fair value		% of Total fair value
Ratings⁽¹⁾ at December 31, 2017							Amortized cost		Fair value		% of Total fair value
U.S. treasury bonds	$	5,186	$	5,413	0.1	%	$	35,093	$	35,097	0.9	%
U.S. agency bonds	1,738,518		1,734,140		36.6	%	1,495,550		1,487,859		38.8	%
AAA	170,515		171,090		3.6	%	156,631		159,682		4.2	%
AA+, AA, AA-	238,315		237,169		5.0	%	146,264		147,054		3.8	%
A+, A, A-	1,386,023		1,374,860		29.0	%	1,089,230		1,106,430		28.9	%
BBB+, BBB, BBB-	1,053,529		1,047,376		22.2	%	824,351		845,244		22.1	%
BB+ or lower	165,768		167,753		3.5	%	49,979		51,776		1.3	%
Total fixed maturities	$	4,757,854	$	4,737,801	100.0	%	$	3,797,098	$	3,833,142	100.0	%


(1)	Based on Standard & Poor’s ("S&P"), or equivalent, ratings



For the Three Months Ended September 30, 2018	Gross gains		Gross losses			Net
AFS fixed maturities	$	40	$	(558	)	$	(518	)
Other investments	293		—			293
Net realized gains (losses) on investment	$	333	$	(558	)	$	(225	)

For the Three Months Ended September 30, 2017	Gross gains		Gross losses			Net
AFS fixed maturities	$	1,366	$	(997	)	$	369
Other investments	5,490		—			5,490
Net realized gains (losses) on investment	$	6,856	$	(997	)	$	5,859

For the Nine Months Ended September 30, 2018	Gross gains		Gross losses			Net
AFS fixed maturities	$	2,979	$	(5,256	)	$	(2,277	)
Other investments	1,995		—			1,995
Net realized gains (losses) on investment	$	4,974	$	(5,256	)	$	(282	)

For the Nine Months Ended September 30, 2017	Gross gains		Gross losses			Net
AFS fixed maturities	$	3,854	$	(1,253	)	$	2,601
Other investments	5,715		—			5,715
Net realized gains (losses) on investment	$	9,569	$	(1,253	)	$	8,316



	September 30, 2018		December 31, 2017
Restricted cash – third party agreements	$	20,884	$	21,889
Restricted cash – related party agreements	149,112		73,016
Total restricted cash	169,996		94,905
Restricted investments – in trust for third party agreements at fair value (amortized cost: 2018 – $75,279; 2017 – $212,507)	75,233		211,331
Restricted investments AFS – in trust for related party agreements at fair value (amortized cost: 2018 – $2,515,190; 2017 – $2,281,668)	2,447,970		2,294,367
Restricted investments HTM – in trust for related party agreements at fair value (amortized cost: 2018 – $1,032,885; 2017 – $1,097,801)	1,019,741		1,125,626
Total restricted investments	3,542,944		3,631,324
Total restricted cash and investments	$	3,712,940	$	3,726,229


•	Level 1 — Valuations based on unadjusted quoted market prices for identical assets or liabilities that we have the ability to access. Since valuations are based on quoted prices that are readily and regularly available in an active market, valuation


(1)	This represents earnings allocated to the holders of non-vested restricted shares issued to the Company's employees under the 2007 Share Incentive Plan.


~~(2)~~	~~Please refer to~~ ~~"Note 13. Shareholders' Equity"~~ ~~and~~ ~~"Note 14. Share Compensation and Pension Plans" of the Notes to Consolidated Financial Statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2016,~~ ~~for the terms and conditions of each of these anti-dilutive instruments.~~



For the Three Months Ended September 30, 2018	Change in net unrealized gains on investment			Foreign currency translation adjustments			Total
Beginning balance	$	(96,107	)	$	(918	)	$	(97,025	)
Other comprehensive (loss) income before reclassifications	(24,656		)	4,458			(20,198		)
Amounts reclassified from AOCI to net income, net of tax	785			—			785
Net current period other comprehensive (loss) income	(23,871		)	4,458			(19,413		)
Ending balance	(119,978		)	3,540			(116,438		)
Less: AOCI attributable to noncontrolling interest	—			(69		)	(69		)
Ending balance, Maiden shareholders	$	(119,978	)	$	3,609		$	(116,369	)

For the Three Months Ended September 30, 2017	Change in net unrealized gains on investment			Foreign currency translation adjustments			Total
Beginning balance	$	27,866		$	7,629		$	35,495
Other comprehensive income (loss) before reclassifications	24,994			(10,828		)	14,166
Amounts reclassified from AOCI to net income, net of tax	(3,650		)	—			(3,650		)
Net current period other comprehensive income (loss)	21,344			(10,828		)	10,516
Ending balance	49,210			(3,199		)	46,011
Less: AOCI attributable to noncontrolling interest	—			(68		)	(68		)
Ending balance, Maiden shareholders	$	49,210		$	(3,131	)	$	46,079


	September 30, 2017			December 31, 2016			Change			September 30, 2018			December 31, 2017			Change
Consolidated Financial Condition	($ in thousands except per share data)									($ in thousands except per share data)
Total investments and cash and cash equivalents⁽⁵⁾	$	5,324,271		$	4,886,473		$	437,798		$	4,101,598		$	3,961,292		$	140,306
Total assets	6,839,097			6,252,299			586,798			6,536,501			6,644,189			(107,688		)
Reserve for loss and loss adjustment expense ("loss and LAE")	3,365,011			2,896,496			468,515
Reserve for loss and loss adjustment expenses ("loss and LAE")										2,851,685			2,386,722			464,963
Senior notes - principal amount	262,500			362,500			(100,000		)	262,500			262,500			—
Maiden common shareholders' equity	956,027			1,045,797			(89,770		)	307,554			767,174			(459,620		)
Maiden shareholders' equity	1,421,027			1,360,797			60,230			772,554			1,232,174			(459,620		)
Total capital resources⁽⁶⁾	1,683,527			1,723,297			(39,770		)	1,035,054			1,494,674			(459,620		)
Ratio of debt to total capital resources	15.6		%	21.0		%	(5.4		)	25.4		%	17.6		%	7.8

Book Value
Book value per common share⁽⁷⁾	$	11.30		$	12.12		$	(0.82	)	$	3.71		$	9.25		$	(5.54	)
Accumulated dividends per common share	3.77			3.32			0.45			4.27			3.92			0.35
Book value per common share plus accumulated dividends	$	15.07		$	15.44		$	(0.37	)	$	7.98		$	13.17		$	(5.19	)

Diluted book value per common share^{(8) (9)}	$	11.20		$	12.00		$	(0.80	)
Diluted book value per common share⁽⁸⁾										$	3.70		$	9.18		$	(5.48	)


(1)	Non-GAAP operating ~~(loss) earnings,~~loss, non-GAAP operating ~~(loss) earnings~~loss per common share, ~~and~~ non-GAAP operating return on average common equity and underwriting loss income are non-GAAP financial measures. See "Key Financial Measures" for additional information and a reconciliation to the nearest U.S. GAAP financial measure ~~(net (loss) income).~~net income.


(2)	Please refer to "Notes to Condensed Consolidated Financial Statements (unaudited) Note ~~10.~~12. Earnings per Common Share" for the calculation of basic and diluted ~~(loss) earnings~~loss per common share.


(4)	Calculated by adding together the net loss and LAE ratio and the expense ratio.


(6)	Total capital resources is the sum of the Company's principal amount of debt and Maiden shareholders' equity. See "Key Financial Measures" for additional information.


(7)	Book value per common share is calculated using Maiden common shareholders’ equity (shareholders' equity excluding the aggregate liquidation value of our preference shares) divided by the number of common shares outstanding.


(8)	Diluted book value per common share is calculated by dividing Maiden common shareholders' equity, adjusted for assumed proceeds from the exercise of dilutive options, by the number of outstanding common shares plus dilutive options and restricted share units (assuming exercise of all dilutive share based awards).


(9)	During a period of loss, the basic weighted average common shares outstanding is used in the denominator of the diluted loss per common share computation

Dividend per Share

Payable on:

Record date:

Common shares

$~~0.15~~0.05

October ~~16, 2017~~15, 2018

October ~~2, 2017~~1, 2018